Financial Data and Key Metrics Changes - Camden reported same-store revenue growth of 0.8% for Q3 2025, up 0.9% year-to-date, and up 0.1% sequentially [9] - Core funds from operations (FFO) for Q3 2025 were $186.8 million, or $1.70 per share, exceeding prior guidance by one cent [13] - The company increased its full-year core FFO guidance by $0.04 per share from $6.81 to $6.85, marking the third consecutive increase for 2025 [15] Business Line Data and Key Metrics Changes - Effective new lease rates decreased by 2.5%, while renewal rates increased by 3.5% in Q3 2025 [9] - The blended rate growth was 0.6%, a decline of 10 basis points from the previous quarter and 40 basis points compared to Q3 2024 [9] - Turnover rates remained 20-30 basis points below last year's levels, with move-outs attributed to home purchases at a record low of 9.1% [10] Market Data and Key Metrics Changes - Strong apartment demand continued, making 2025 one of the best years for apartment absorption in the last 25 years [5] - The company noted that apartment affordability improved, with 33 months of wage growth exceeding rent growth [5] - Private market sales of apartments showed robust activity, with cap rates for high-quality properties landing in the 4.75%-5% range [6] Company Strategy and Development Direction - Camden is focused on maintaining a strong balance sheet with no major dilutive refinances over the next couple of years [6] - The company plans to continue share buybacks, having repurchased $50 million of shares at a significant discount to net asset value [7] - Camden anticipates a stronger growth profile post-2025 as the excess supply from the post-COVID environment diminishes [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing reduced uncertainty compared to 2025 and a significant amount of multifamily supply absorbed in 2025 [19][20] - The company highlighted that demographic and migration trends support new demand going forward [6] - Management noted that the current disconnect between private and public market values for apartments is significant, with a 30% discount to consensus NAV [7][39] Other Important Information - Camden disposed of three older communities for a total of $114 million, using proceeds to repurchase shares [12] - The company expects occupancy for Q4 2025 to be in the range of 95.2%-95.4% [15] - Property expenses are expected to decline slightly, leading to a decrease in the full-year same-store expense midpoint from 2.5% to 1.75% [14] Q&A Session Summary Question: Early thoughts on 2026 earnings - Management indicated that earnings for 2026 are expected to be flat compared to 2025, with a more favorable environment anticipated [19] Question: Current appetite for investment in apartments - There remains robust demand for multifamily assets, with significant capital available, although transaction volumes are below pre-COVID levels [24][25] Question: Fourth quarter expectations relative to normal seasonality - The fourth quarter is expected to reflect typical seasonality, with blended lease tradeouts anticipated to be down approximately 1% [30] Question: Impact of concessions on market rents - In higher supply markets, concessions are averaging around five weeks, approximately 10%, which will need to roll off in 2026 [73][74] Question: Supply impact on 2026 - The company expects a significant decline in new deliveries, which should positively impact demand and absorption rates in 2026 [56][57]

Financial Data and Key Metrics Changes - The company reported a solid quarter with core FFO per share exceeding the midpoint of guidance by $0.03, leading to an increase in the full-year guidance midpoint for core FFO per share to $15.94 [9] - Year-to-date blended lease rate growth was 3% across all leases and 2.7% on like-term leases, demonstrating the competitive advantage in low-supply markets [3][4] Business Line Data and Key Metrics Changes - Southern California's blended lease rate growth was around 1.2%, while Northern California achieved close to 4%, and Seattle was at about 2% [14] - The structured finance portfolio saw $118 million in redemptions year-to-date, with an expectation of $200 million in total proceeds for the full year [9] Market Data and Key Metrics Changes - Northern California remains the best-performing region, with significant rent growth driven by AI-related startups and favorable rent-to-income ratios [4] - Seattle's market is stable but trending at the low end of expectations due to soft demand and supply constraints [4][36] Company Strategy and Development Direction - The company is optimistic about the market outlook for 2026, anticipating a decline in total housing supply deliveries by almost 40% [6] - The focus remains on acquiring assets in high-growth submarkets, with nearly $1 billion invested in Northern California since 2024 [6][30] Management's Comments on Operating Environment and Future Outlook - Management noted that hiring and investment decisions have been delayed due to a soft economic environment and policy uncertainty, but the West Coast is expected to outperform the U.S. average [5] - The company anticipates stable growth in 2026, with earnings projected to be between 80 to 100 basis points [6][19] Other Important Information - The transaction market on the West Coast is slightly above 2024 levels but remains below historical averages, with cap rates generally in the mid-4% range [7] - The company has executed several financings throughout 2025 to strengthen its balance sheet and increase liquidity [11] Q&A Session Summary Question: Can you break out the blended rate growth for the third quarter? - Management confirmed that Los Angeles was a drag on performance, with Southern California at 1.2%, Northern California close to 4%, and Seattle at about 2% [14] Question: Is there a pickup in demand in Northern California? - Management noted steady strength in Northern California, with a slight uptick in tech job postings benefiting the region [16] Question: Can you break down the 2026 earnings estimate? - Management indicated that Northern California is expected to lead, with Southern California ranking third and Seattle in the middle [19] Question: How do you view the impact of AI on job growth? - Management believes AI will be net additive to the economy, with Seattle's job market remaining stable due to strong anchor industries [65] Question: What is the outlook for concessions across the portfolio? - Concessions are comparable to the same period last year, with negligible impact on renewals and primarily affecting new leases [59] Question: What is the strategy regarding the preferred equity book? - Management stated they are not exiting the business but are being more selective due to heavy redemptions and compressed yields [49] Question: How does the company view the impact of potential changes in Seattle's local government? - Management does not foresee significant changes affecting apartment communities, as recent legislation has balanced tenant protection with housing production needs [51]

Financial Data and Key Metrics Changes - The company reported a core FFO per share guidance reduction of $0.14 to $11.25, reflecting a year-over-year earnings growth expectation of 2.2% [12][14] - Same-store residential revenue growth is now projected at 2.5%, with operating expenses expected to grow by 3.8% [13][16] - The company experienced a $0.05 underperformance in core FFO per share relative to prior expectations, attributed to lower revenue and higher operating expenses [9][14] Business Line Data and Key Metrics Changes - The same-store portfolio results contributed $0.03 to the underperformance, with $0.01 from lower revenue and $0.02 from higher operating expenses [9][14] - The company anticipates a decline in same-store revenue growth due to factors such as average lease rates and economic occupancy [16][19] Market Data and Key Metrics Changes - Job growth projections for 2025 have been revised down to 725,000 from over 1 million, impacting apartment demand [9][10] - The Mid-Atlantic region has seen a decline in job growth, with expectations of continued weakness due to the government shutdown [17][19] Company Strategy and Development Direction - The company is focused on a $3 billion development pipeline, with projects expected to generate significant earnings uplift in 2026 and 2027 [6][7] - The company is strategically increasing development activity while the industry retrenches, taking advantage of lower costs and subdued competition [24][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's positioning due to low levels of new supply and a lack of affordable housing alternatives [18][19] - The company anticipates that the economic environment will stabilize, leading to improved job growth and demand [63][64] Other Important Information - The company repurchased $150 million of its stock at an average price of $193 per share during Q3 [7] - The balance sheet remains strong with low leverage and over $3 billion in available liquidity [7][56] Q&A Session Summary Question: Inquiry about development projects and capital allocation - The company is considering $1 billion in development starts for 2026, focusing on established regions with stable operating fundamentals [27][29] Question: Long-term market outlook for Southern California and the Mid-Atlantic - Management is looking to reduce exposure in the Mid-Atlantic and California, focusing more on Northern Virginia [32][36] Question: Impact of job market on rent growth - Management noted that any job cuts from the government shutdown may have delayed impacts on rent growth, but they remain optimistic about future demand [75][76] Question: Bad debt concerns - The increase in bad debt was attributed to a modest number of accounts, with expectations for improvement in 2026 [66][68] Question: Asset sales and economic loss - The economic loss from asset sales was driven by a couple of underperforming projects, but overall investment returns remain strong [82][84]

Financial Data and Key Metrics Changes - The company reported a core FFO per share guidance reduction of $0.14 to $11.25, reflecting a year-over-year earnings growth expectation of 2.2% [12][14] - Same-store residential revenue growth is now projected at 2.5%, with operating expense growth at 3.8%, leading to same-store NOI growth of 2% [13][16] Business Line Data and Key Metrics Changes - The third-quarter core FFO per share results were $0.05 below prior expectations, with $0.03 attributed to same-store portfolio results, including lower revenue and higher operating expenses [9][14] - The company expects same-store revenue growth to decline by 30 basis points from mid-year outlook, primarily due to average lease rate and economic occupancy [16] Market Data and Key Metrics Changes - Apartment demand has softened, attributed to reduced job growth, with NABE projecting only 725,000 jobs in 2025, down from over 1 million [9][10] - The Mid-Atlantic and Southern California markets have shown pronounced softness, particularly in Los Angeles, where job growth in the film and television industry has declined by approximately 35% [17][18] Company Strategy and Development Direction - The company is focused on a $3 billion pipeline of projects under construction, expected to enhance earnings and value creation in 2026 and 2027 [6][7] - The strategic focus includes advancing operating model initiatives to generate $80 million of annual incremental NOI by year-end 2025 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's positioning due to low new supply levels and a lack of affordable housing alternatives [18][19] - The company anticipates continued weakness in the Mid-Atlantic region due to the government shutdown and its impact on job growth [17][76] Other Important Information - The company repurchased $150 million of its stock at an average price of $193 per share during Q3 [7] - The balance sheet remains strong with low leverage and over $3 billion in available liquidity [7][12] Q&A Session Summary Question: How is the company looking at the next crop of projects and capital allocation decisions? - The company is considering $1 billion in development starts for 2026, focusing on established regions with stable operating fundamentals [27][29] Question: Will the company reduce exposure in Southern California and the Mid-Atlantic? - Management indicated a strategy to reduce overall exposure in these markets while increasing focus on Northern Virginia [32][36] Question: What is the outlook for bad debt and its impact on lease-up communities? - Bad debt is expected to improve, with a forecasted benefit of approximately 15 basis points for 2025, and lease-up communities are not necessarily experiencing higher bad debt [68][69] Question: What drove the repair and maintenance cost surprises? - The increase in repair and maintenance costs was attributed to higher costs per unit and unexpected repairs, rather than a specific pattern [43] Question: How does the company view the job market's impact on rent growth? - Management expressed cautious optimism, noting that the supply picture is improving, which could support revenue growth once stability returns [75][76]

Core Insights - UDR Inc. reported third-quarter 2025 funds from operations as adjusted (FFOA) per share of 65 cents, exceeding the Zacks Consensus Estimate of 63 cents and up from 62 cents in the prior-year quarter [1][9] - The company raised its 2025 FFOA midpoint per share guidance, reflecting positive performance in same-store net operating income (NOI) driven by higher effective blended lease rates [1][8] Financial Performance - Quarterly revenues from rental income were $429.3 million, slightly below the Zacks Consensus Estimate of $429.7 million, while total revenues reached $431.9 million, both showing over 2.5% year-over-year growth [2] - Same-store revenues increased by 2.6% year over year, while same-store expenses rose by 3.1%, resulting in a 2.3% improvement in same-store NOI [3] - The weighted average same-store physical occupancy was 96.6%, up 30 basis points year over year but down 30 basis points sequentially [4] Balance Sheet and Liquidity - As of September 30, 2025, UDR had $1.0 billion in liquidity, with total debt at $5.8 billion, of which only $485.9 million (8.9%) is maturing through 2026 [5] - The net debt-to-EBITDA ratio remained stable at 5.5X, with a weighted average interest rate of 3.4% and an average maturity of 4.6 years [6] Portfolio Activity - UDR has agreed to acquire a home community in suburban Metropolitan Washington, D.C., consisting of 406 apartment units for approximately $147 million, expected to close in the fourth quarter of 2025 [7] 2025 Guidance - For the fourth quarter of 2025, UDR expects FFOA per share in the range of 63-65 cents, with a full-year 2025 FFOA per share guidance raised to $2.53-$2.55, reflecting an increase from the previous guidance of $2.52 [8][10]

Financial Data and Key Metrics Changes - For Q3 2025, same-store revenue and NOI growth were 2.6% and 2.3% respectively, exceeding consensus expectations [12][19] - FFOA per share was $0.65, surpassing previous guidance, leading to an increase in full-year 2025 FFOA per share guidance to a range of $2.53 to $2.55 [23][24] - Year-over-year same-store expense growth was 3.1%, better than expectations, driven by favorable real estate tax growth and insurance savings [13][14] Business Line Data and Key Metrics Changes - Blended lease rate growth was 0.8%, with renewal rate growth at 3.3% and new lease rate growth at -2.6% [12] - Annualized resident turnover improved by nearly 300 basis points compared to the prior year, contributing to revenue and expense benefits [12] - Other income growth was strong at 8.5%, driven by continued innovation and value-add services [13] Market Data and Key Metrics Changes - Coastal markets performed well, with same-store revenue growth of approximately 4%, while Sunbelt markets lagged with slightly negative revenue growth [16][19] - The East Coast had a weighted average occupancy of 96.7% and blended lease rate growth of 2% year to date [17] - The West Coast showed strong momentum with a 96.7% occupancy and 3% blended lease rate growth year to date [18] Company Strategy and Development Direction - The company focuses on data-driven capital allocation and operational innovation to enhance cash flow growth and shareholder value [6][9] - UDR aims to leverage its investment-grade balance sheet and substantial liquidity for future growth opportunities [9][27] - The company is committed to corporate stewardship and sustainability, as evidenced by its seventh annual Corporate Responsibility Report [9] Management's Comments on Operating Environment and Future Outlook - Management noted a deceleration in rent growth due to employment uncertainty, slower household formation, and high levels of new supply [5][20] - Despite current challenges, management remains optimistic about long-term fundamentals in the apartment industry, citing a structural under-housing issue in the U.S. [5][11] - The company plans to adjust its operating strategy to maximize cash flow and leverage its innovative culture for growth [20] Other Important Information - The company welcomed Rick Clark as a new board member, enhancing its board refreshment process [10] - UDR has a strong liquidity position with over $1 billion available as of September 30 [27] - The company repurchased approximately 930,000 shares at an average price of $37.70, reflecting a commitment to shareholder returns [24] Q&A Session Summary Question: Can you walk through the assumptions for a flat earn-in for 2026? - Management indicated that the flat earn-in assumes blended lease rates of approximately -1% to -2% in Q4, with regional variations expected [30][34] Question: What is driving variability in rate growth compared to peers? - Management attributed variability to consumer sentiment, job growth, and supply dynamics, particularly in the Sunbelt markets [37][39] Question: Are there concerns about retention rates given current job market conditions? - Management expressed confidence in retention rates, citing a significant reduction in turnover due to enhanced customer experience initiatives [92][93]

INVESTOR TELECONFERENCE PRESENTATION THIRD QUARTER 2025 OCTOBER 30, 2025 Avalon at the Hingham Shipyard Hingham, MA [FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERFORM] See Appendix for information about forward- looking statements and definitions and reconciliations of non-GAAP financial measures and other terms. For the reasons described in the referenced forward-looking statements, our ...

Financial Data and Key Metrics Changes - The company reported core FFO for the quarter of $2.16 per diluted share, aligning with the midpoint of third quarter guidance [16] - The net debt to EBITDA ratio was 4.2 times, with outstanding debt approximately 91% fixed at an effective rate of 3.8% [17][18] - Adjustments to guidance included lowering the midpoint of effective rent growth to negative 0.4% and total same store revenue guidance to negative 0.05% [19] Business Line Data and Key Metrics Changes - Average physical occupancy improved to 95.6%, a 20 basis point increase from the second quarter [10] - New lease-over-lease pricing improved to -5.2%, while renewal lease-over-lease performance was +4.5%, leading to a blended pricing of positive 0.3% [10] - The company completed 2,090 interior unit upgrades, achieving rent increases of $99 above non-upgraded units [13] Market Data and Key Metrics Changes - Demand across markets remains healthy, with occupancy levels increasing 450 basis points over the past five quarters [4] - The Mid Atlantic region outperformed relative to the portfolio, with strong performance noted in Richmond and Washington D.C. [11] - The trailing twelve-month starts in the region were at 1.8% of inventory, half the historical norm, indicating a decline in new supply [4][67] Company Strategy and Development Direction - The company is focusing on high-demand, high-growth markets and significant redevelopment opportunities, with plans to start construction on six to eight projects over the next six quarters [8] - The company aims to capitalize on situations where developers face equity challenges, allowing for acquisitions at compelling bases [7][43] - The strategy includes a balanced approach between external growth through development and internal investments to improve existing portfolio margins [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for an acceleration of the recovery cycle in 2026, driven by declining new deliveries and strong demand fundamentals [9][27] - The job market is expected to be softer in 2026, but the administration's focus on job growth could provide support [26] - The company anticipates continued strong collections and occupancy, with demographic trends favoring renting over home purchases [5][9] Other Important Information - The company amended its revolving credit facility, increasing capacity from $1.25 billion to $1.5 billion and extending maturity to January 2030 [18] - The company is experiencing a competitive advantage due to its access to capital and development expertise in a constrained equity environment [7] - The company is actively pursuing technology initiatives to drive efficiencies and improve margins [8] Q&A Session Summary Question: Recent pricing trends on new leases - Management noted that new lease pricing declined less than normal from Q2 to Q3, with typical seasonal trends observed [23][24] Question: Thoughts on 2026 earnings and contribution from other income - Management indicated that demand fundamentals for 2026 appear similar to 2025, with expectations for a decline in supply and potential for improved lease rates [25][26] Question: Changes in expense guidance for 2026 - Management highlighted favorable trends in real estate taxes and insurance, projecting normal growth rates for these expenses [31] Question: Concessions in development markets - Concessions were reported to be slightly higher in Q3 compared to Q2, with typical concessions ranging from half a month to a month free [33] Question: Lease-up cadence for development properties - Management acknowledged that leasing velocity has been slower than expected, but rents remain in line with original performance [36] Question: Capital allocation and development yields - Management emphasized a focus on generating compounded earnings growth and maintaining a steady dividend, with selective capital deployment in development opportunities [41][42]

Financial Data and Key Metrics Changes - The third quarter 2025 corporate FFO per share was $0.29, in line with expectations [11] - Same-store NOI grew by 2.7% in the quarter, driven by a 1.4% increase in same-store revenue and a 70 basis point decrease in operating expenses compared to the prior year [11][15] - Average occupancy at the end of the quarter was 95.6%, a 20 basis point improvement from the end of the second quarter [4] Business Line Data and Key Metrics Changes - Same-store revenue increased due to higher average rents per unit and improved bad debt, which now represents less than 1% of same-store revenues [4][15] - The company completed 788 units during the quarter, achieving an average monthly rent increase of approximately $250 over unrenovated market comps, resulting in a weighted average ROI of 15% [5] - Same-store operating expenses decreased over the prior year, primarily due to lower property insurance and turnover costs [5][16] Market Data and Key Metrics Changes - Positive net absorption was observed in over half of the markets, encompassing 60% of NOI exposure [8] - Atlanta, the largest market, saw occupancy increase by 50 basis points, with asking rents up 5% [8][14] - New deliveries in IRT submarkets declined by 56% from the 2023 to 2024 quarterly averages, with supply forecasted to grow by less than 2% per year for the next several years [7] Company Strategy and Development Direction - The company will continue to evaluate investment opportunities, including value-add renovations, acquisitions, deleveraging, and share buybacks to drive long-term shareholder value [6][19] - The focus remains on optimizing near-term performance through stable occupancy, managing expenses, and investing in the value-add program [10] - The company is cautiously optimistic about a better operating environment in 2026, supported by a differentiated portfolio of Class B assets and a strong balance sheet [21] Management's Comments on Operating Environment and Future Outlook - Management noted that while market fundamentals are improving, it is taking longer than expected, but there is light at the end of the tunnel with increasing pricing power [10][21] - The company expects apartment demand to remain steady, driven by employment opportunities and favorable rent versus buy economics [8] - Management highlighted that bad debt has improved significantly, with expectations to stabilize sustainably below 1% of revenues [15][16] Other Important Information - The company acquired two communities in Orlando for an aggregate purchase price of $155 million, which more than doubled its number of apartment units in the area [5][17] - The company recorded a $12.8 million impairment on an asset held for sale in Denver due to recent market pressures [17] - The updated acquisition guidance is $215 million, reflecting only closed acquisitions to date, while disposition guidance is $161 million [20] Q&A Session Summary Question: Can you discuss the current supply pressures compared to earlier in the year? - Management noted that while some markets are experiencing softness, they expect movement early next year as supply pressures are waning [25][27] Question: What are the expectations for lease rate growth in 2026? - Management indicated that they expect new leases to begin hitting break-even points in the first half of next year, with cautious optimism for lease rate growth [51][55] Question: How are concessions trending in competitive markets? - Concessions are generally stable, with 23% of leases having some type of concession, down from 30% in Q3 of last year [56][60] Question: What is the company's appetite for buybacks given the current market conditions? - Management expressed a strong appetite for buybacks, recognizing the disconnect between market trading and implied cap rates [66][70] Question: Are there any labor availability issues affecting operations? - Management confirmed that there are no significant labor availability issues across their teams [110][111] Question: Have there been any shifts in tenant behavior that could influence rent growth? - Management has not observed significant shifts in tenant behavior affecting rent growth, but they are actively monitoring the situation [113][106]

Financial Data and Key Metrics Changes - The third quarter results reflect resilience in the business despite a mixed macroeconomic environment, with strong demand and excellent resident retention, particularly in San Francisco and New York [4][6] - Year-over-year income growth for new residents was reported at 6.2%, indicating a healthy growth rate [5] - The company adjusted the midpoint of its annual same-store revenue guidance down by 15 basis points to 2.75% due to observed market conditions [7][11] Business Line Data and Key Metrics Changes - The renewal rate for the quarter was strong at 4.5%, with nearly 59% of leases renewing, contributing to the lowest reported turnover in the company's history [17] - New lease rates decreased by 1%, resulting in a blended rate increase of 2.2% for the quarter, which was at the low end of expectations [18][19] Market Data and Key Metrics Changes - San Francisco is expected to be the best-performing market in 2025, with a favorable supply setup and significant demand driven by the tech sector [8][20] - Washington, DC experienced a decline in demand and pricing power due to federal job cuts and a government shutdown, leading to increased concessions and a slight increase in turnover [22][71] Company Strategy and Development Direction - The company is focused on capital allocation, having repurchased approximately $100 million of its stock during the third quarter, while also closing on a 375-unit acquisition in Arlington, Texas [11][12] - The company plans to be selective in acquisitions due to the current valuation of its stock compared to private market asset prices [12][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects for the business, citing a significant decline in competitive new supply expected in 2026 [14][15] - The company anticipates that if job growth reignites, it could lead to strong results in 2026, with portfolio-wide occupancy above 96% [15][32] Other Important Information - The company has implemented AI-driven tools to enhance operational efficiency, including a 50% reduction in application processing time [25][26] - The company has adjusted its full-year same-store revenue outlook to a range of 2.5%-3%, with a midpoint of 2.75% [30][32] Q&A Session Summary Question: How does the company approach forecasting next year's growth amid falling rent growth? - Management indicated that they are modeling for continued deceleration but feel positive about the setup for next year due to reduced competitive supply [35] Question: What factors influence the decision to continue stock buybacks? - The decision is influenced by the attractiveness of other investment opportunities and the availability of capital needed for acquisitions [37][39] Question: What is the current state of demand in Washington, DC? - Demand has cooled, with a decrease in urgency to sign leases and an increase in concessions, but management remains optimistic about long-term prospects due to declining competitive supply [70][72] Question: What is the outlook for rent growth in San Francisco? - Management expects strong rent growth due to a supply-demand imbalance, with rents approaching 2019 levels and incomes up 22% since then [64][74] Question: How does the company view the impact of AI on job growth in key markets? - Management believes that while AI may displace some jobs, it is also creating opportunities in related industries, contributing to overall job growth [56][61]