| Metric (USD Thousands) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Same-Store Communities | N/A     | **368,730**  **[0000074208-23-000044_udr-20230331x10q.htm:35]**  | **374,534**  **[0000074208-23-000053_udr-20230726xex99d2.htm:10]**  | **385,551**  **[0000074208-23-000063_udr-20231026xex99d2.htm:11]**  | N/A     | **388,162**  **[0000074208-24-000057_udr-20240730xex99d2.htm:11]**  | **393,654**  **[0000074208-24-000077_udr-20241030xex99d2.htm:12]**  |
| Stabilized, Non-Mature Communities | N/A | **18,287**  **[0000074208-23-000044_udr-20230331x10q.htm:35]**  | **9,868**  **[0000074208-23-000053_udr-20230726xex99d2.htm:10]**  | **6,690**  **[0000074208-23-000063_udr-20231026xex99d2.htm:11]**  | N/A | **16,480**  **[0000074208-24-000057_udr-20240730xex99d2.htm:11]**  | **14,800**  **[0000074208-24-000077_udr-20241030xex99d2.htm:12]**  |
| Development Communities | N/A | N/A | **1,958**  **[0000074208-23-000053_udr-20230726xex99d2.htm:10]**  | **3,198**  **[0000074208-23-000063_udr-20231026xex99d2.htm:11]**  | N/A | **820**  **[0000074208-24-000057_udr-20240730xex99d2.htm:11]**  | **1,858**  **[0000074208-24-000077_udr-20241030xex99d2.htm:12]**  |
| Non-Residential / Other | N/A | **11,290**  **[0000074208-23-000044_udr-20230331x10q.htm:35]**  | **7,643**  **[0000074208-23-000053_udr-20230726xex99d2.htm:10]**  | **9,168**  **[0000074208-23-000063_udr-20231026xex99d2.htm:11]**  | N/A | **7,866**  **[0000074208-24-000057_udr-20240730xex99d2.htm:11]**  | **7,776**  **[0000074208-24-000077_udr-20241030xex99d2.htm:12]**  |
| Total Revenue | **399,656**  **[0000074208-23-000003_udr-20230206xex99d2.htm:2]**  | **398,307**  **[0000074208-23-000044_udr-20230331x10q.htm:35]**  | **394,003**  **[0000074208-23-000053_udr-20230726xex99d2.htm:10]**  | **408,359**  **[0000074208-23-000063_udr-20231026xex99d2.htm:11]**  | **413,273**  **[0000074208-24-000005_udr-20240206xex99d2.htm:2]**  | **411,669**  **[0000074208-24-000039_udr-20240331x10q.htm:36]**  | **413,328**  **[0000074208-24-000057_udr-20240730xex99d2.htm:11]**  | **418,088**  **[0000074208-24-000077_udr-20241030xex99d2.htm:12]**  |

6ea55f16784bd84bd08164a91f6d38c9b24b0288e3b28d95e75551bef93fd4d3

UDR, Inc. is a self-administered real estate investment trust (REIT) that specializes in owning, operating, acquiring, renovating, developing, redeveloping, disposing of, and managing multifamily apartment communities across the United States **[0000074208-24-000081_udr-20240930x10q.htm:43]** **[0000074208-24-000011_udr-20231231x10k.htm:59]**. The company generates revenue primarily from lease revenue, which includes rental payments and pass-through revenue from retail and residential leases, as well as other revenue from services provided to tenants and third parties **[0000074208-24-000011_udr-20231231x10k.htm:183]**. UDR's business strategy focuses on diversification across markets, price points, and product types to generate strong total shareholder returns **[0000074208-24-000029_udr-20240523xdef14a.htm:7]**.

1. **Same-Store Communities** - Represents stabilized communities that contribute significantly to rental income and net operating income (NOI) **[0000074208-24-000039_udr-20240331x10q.htm:34]** **[0000074208-24-000060_udr-20240630x10q.htm:38]**.
2. **Non-Mature Communities/Other** - Includes recently acquired, developed, or redeveloped communities that are not yet stabilized **[0000074208-24-000039_udr-20240331x10q.htm:34]** **[0000074208-24-000060_udr-20240630x10q.htm:38]**.

366a16665af07f7b01984914aa72e021e03a131e3f37843b0b8a8c0cc74eb772

| Metric (USD Thousands) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| West Region            | 112,452  **[0000074208-23-000003_udr-20230206xex99d2.htm:18]**  | 120,698  **[0000074208-23-000044_udr-20230331x10q.htm:35]**  | 119,516  **[0000074208-23-000056_udr-20230630x10q.htm:39]**  | 122,300  **[0000074208-23-000066_udr-20230930x10q.htm:40]**  | N/A | 120,873  **[0000074208-24-000039_udr-20240331x10q.htm:36]**  | 122,084  **[0000074208-24-000060_udr-20240630x10q.htm:40]**  | 123,840  **[0000074208-24-000081_udr-20240930x10q.htm:40]**  |
| Mid-Atlantic Region    | 78,001  **[0000074208-23-000003_udr-20230206xex99d2.htm:18]**   | 78,012  **[0000074208-23-000044_udr-20230331x10q.htm:35]**   | 79,950  **[0000074208-23-000056_udr-20230630x10q.htm:39]**   | 81,900  **[0000074208-23-000066_udr-20230930x10q.htm:40]**   | N/A | 79,935  **[0000074208-24-000039_udr-20240331x10q.htm:36]**   | 80,604  **[0000074208-24-000060_udr-20240630x10q.htm:40]**   | 81,844  **[0000074208-24-000081_udr-20240930x10q.htm:40]**   |
| Northeast Region       | 70,943  **[0000074208-23-000003_udr-20230206xex99d2.htm:18]**   | 76,569  **[0000074208-23-000044_udr-20230331x10q.htm:35]**   | 76,745  **[0000074208-23-000056_udr-20230630x10q.htm:39]**   | 82,100  **[0000074208-23-000066_udr-20230930x10q.htm:40]**   | N/A | 82,065  **[0000074208-24-000039_udr-20240331x10q.htm:36]**   | 84,231  **[0000074208-24-000060_udr-20240630x10q.htm:40]**   | 85,710  **[0000074208-24-000081_udr-20240930x10q.htm:40]**   |
| Southeast Region       | 48,095  **[0000074208-23-000003_udr-20230206xex99d2.htm:18]**   | 55,820  **[0000074208-23-000044_udr-20230331x10q.htm:35]**   | 59,085  **[0000074208-23-000056_udr-20230630x10q.htm:39]**   | 59,600  **[0000074208-23-000066_udr-20230930x10q.htm:40]**   | N/A | 59,198  **[0000074208-24-000039_udr-20240331x10q.htm:36]**   | 59,648  **[0000074208-24-000060_udr-20240630x10q.htm:40]**   | 59,128  **[0000074208-24-000081_udr-20240930x10q.htm:40]**   |
| Southwest Region       | 37,034  **[0000074208-23-000003_udr-20230206xex99d2.htm:18]**   | 37,631  **[0000074208-23-000044_udr-20230331x10q.htm:35]**   | 39,238  **[0000074208-23-000056_udr-20230630x10q.htm:39]**   | 39,700  **[0000074208-23-000066_udr-20230930x10q.htm:40]**   | N/A | 39,181  **[0000074208-24-000039_udr-20240331x10q.htm:36]**   | 41,595  **[0000074208-24-000060_udr-20240630x10q.htm:40]**   | 43,132  **[0000074208-24-000081_udr-20240930x10q.htm:40]**   |

c659a4a6946fe4c4fe91ea2f31e7e203fd1265fa7ee4084149632aa3231acd1b

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

de27e5e09635d16ee885c7271b24cb720b8368f05a6c6a982c7f292d58816ff5

Cash and Cash Equivalents (USD, thousands)

Accounts Payable (USD, thousands)

Short-term Debt (USD, thousands)

Accrued Expenses (USD, thousands)

Lease Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

255ecc928326d771d9824618b1d990ee7d17dbaadde820b8a70364aa289983f7

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

SG&A (USD, millions)

R&D (USD, millions)

D&A (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

EPS - Basic (USD)

EPS - Diluted (USD)

55b73dfb241513fa64f8adb40ca8aadaa95f61da651029846d2a29bbde4532af

Weighted Average Remaining Lease Term (Years)

Weighted Average Discount Rate (%)

Multifamily Tenant Lease Receivables Balance ($ Million)

Weighted Average Physical Occupancy (%)

Turnover Capital Expenditures ($)

Asset Preservation Expenditures ($)

Repair and Maintenance Expense ($)

Average Home Count

Same-Store Community Population

NOI Enhancing Improvements ($)

Major Renovations ($)

e89465aa60ae32036afbfcb685470727c23186e183382583faad06a8fefae330

1. With elevated new supply impacting some of your markets and concessions beginning to increase, do you believe the challenges ahead are tougher than those you've faced previously, or have you already weathered the worst of the supply impact?  **[UDR_3395586_21]** 
2. Given your strategy to push renewal lease rate growth higher due to improved retention, how sustainable is this approach, and are you concerned that pushing rates too aggressively could lead to increased turnover in the future?  **[UDR_3395586_12]** 
3. You've mentioned that occupancy and blended lease rate growth have stabilized after some volatility; is this fluctuation simply normal seasonality, or are there specific market factors causing you concern about leasing trends?  **[UDR_3395586_26]** 
4. There appears to be a gap in cap rates between higher growth and lower growth markets; can you quantify this delta, and how does it influence your investment decisions across different regions?  **[UDR_3395586_16]** 
5. Previously, you lagged peers in resident turnover but have recently improved; how confident are you that you can maintain lower turnover compared to peers, and what steps are you taking to ensure this trend continues?  **[UDR_3395586_13]** 

eb385847076fc222d7bb4f848d6ae3437ea7aaeddd37fc5267c64ecfc32ec36c

Rental Income

Lease Revenue

- Same-Store Communities

- Non-Mature Communities/Other

Other Revenue

Joint Venture Management and Other Fees

Total Revenue

8858b5c7f9f6e7e4797db9b801c9a202e1a7ac39312d632b6511b5e9a3beee6d

- West Region

- Mid-Atlantic Region

- Northeast Region

- Southeast Region

- Southwest Region

- Non-Mature/Other

Total Rental Income

3865bc6581476b4468900a834f01c742261b53105c3d8c7ec360cea9f7ae222d

6d9b9d53ccfb332fc583ab21c01e181dca32c788dffab44bac988a2f4fa7c72f

**Quarterly guidance for Q4 2024:**
- **FFOA per share**: $0.63  **[UDR_3405193_6]** (no prior guidance)

**Annual guidance for FY 2024:**
- **FFOA per share**: $2.48  **[UDR_3405193_6]** (raised from $2.46  **[UDR_3395586_5]** )  
- **Same-Store Revenue Growth**: 2.2%  **[UDR_3405193_5]** (raised from 2.0%  **[UDR_3395586_3]** )  
- **Same-Store Expense Growth**: 4.4%  **[UDR_3405193_5]** (lowered from 5.0%  **[UDR_3395586_3]** )  
- **Blended Lease Rate Growth**: 1.4%  **[UDR_3405193_5]** (raised from ~1.3%  **[UDR_3395586_3]** )

**Annual guidance for 2025:**
- **Same-Store Revenue Earn-In**: 60 to 70 basis points  **[UDR_3405193_5]** (no prior guidance)

dc3921c26efab218badf83995ac55318544722330e2b6620e51c9e53b6257da0

| Name              | Position                                      | Start Date | Short Bio                                                                                                                                                                                                 |
|-------------------|-----------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Thomas W. Toomey  | Chairman and Chief Executive Officer          | 2001       | Thomas W. Toomey has been serving as the Chairman and CEO of UDR since 2001. He was also the President from 2001 to 2019. He has led significant portfolio repositioning, resulting in an 11% return for shareholders  **[0000074208-23-000032_udr-20230601xdef14a.htm:29]** **[0000074208-24-000029_udr-20240523xdef14a.htm:29]** .                  |
| Joseph D. Fisher  | President and Chief Financial Officer         | January 2017 | Joseph D. Fisher joined UDR in January 2017 as SVP and CFO. In May 2022, he was promoted to President and CFO, overseeing innovation, IT, ESG, human capital, and talent development  **[0000074208-24-000029_udr-20240523xdef14a.htm:59]** .                                                       |
| Harry G. Alcock   | Senior Vice President - Chief Investment Officer | December 2010 | Harry G. Alcock joined UDR in December 2010 as SVP - Asset Management and became SVP - Chief Investment Officer in February 2017. He previously worked at AIMCO for over 16 years in various executive roles  **[0000074208-24-000029_udr-20240523xdef14a.htm:59]** **[0000074208-24-000029_udr-20240523xdef14a.htm:60]** **[0000074208-23-000032_udr-20230601xdef14a.htm:55]** .                        |
| Michael D. Lacy   | Senior Vice President - Property Operations   | November 2006 | Michael D. Lacy joined UDR in November 2006. He has held various roles, including Director of Pricing and Revenue Management, and was promoted to SVP - Property Operations in January 2019  **[0000074208-24-000029_udr-20240523xdef14a.htm:60]** **[0000074208-23-000032_udr-20230601xdef14a.htm:55]** .                                             |
| H. Andrew Cantor  | Senior Vice President – Acquisitions and Dispositions | N/A        | The documents do not provide specific details about H. Andrew Cantor's start date or a detailed biography.                                                                                                                                      |
| Bob McCullough    | Senior Vice President – Development           | N/A        | The documents do not provide specific information about Bob McCullough or his role as SVP – Development at UDR.                                                                                                                                 |

90fc634bc7d95a0a1358393f85c76469c4811ced8ddb259d9970819788f212fe

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | January 2008  **[0000074208-24-000081_udr-20240930x10q.htm:100]** |
| End Date/Duration        | N/A             |
| Total additional amount  | 15 million shares  **[0000074208-24-000081_udr-20240930x10q.htm:100]**  |
| Remaining authorization amount | 12,027,000 shares  **[0000074208-24-000081_udr-20240930x10q.htm:100]**  |
| Details                  | N/A             |

4de2c4e4cd470bf14df28b4348ceb6f16cf58f159a733e1761d55dddcdb61441

| Name              | Start Date | End Date | Reason for Change  |
|-------------------|------------|----------|--------------------|
| Ernst & Young LLP | 1984  **[0000074208-24-000011_udr-20231231x10k.htm:107]**    | Present  | Current auditor    |

c43d892b8ed836948c32b69824cff9c08dc1975dc0e654b7560f1ca2b156e35e

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $420.15 million (+2% YoY)  **[0000074208-23-000066_udr-20230930x10q.htm:3]** **[0000074208-24-000081_udr-20240930x10q.htm:3]**   
- Southwest Region Revenue: $43.13 million (**+8.7% YoY**)  **[0000074208-23-000066_udr-20230930x10q.htm:40]** **[0000074208-24-000081_udr-20240930x10q.htm:40]**   
- Non-Mature/Other Revenue: $24.43 million (+7.1% YoY)  **[0000074208-23-000066_udr-20230930x10q.htm:40]** **[0000074208-24-000081_udr-20240930x10q.htm:40]**   
- Operating Income (EBIT): $69.9 million (**-67% YoY**)  **[0000074208-23-000056_udr-20230630x10q.htm:3]** **[0000074208-24-000081_udr-20240930x10q.htm:3]**   
- Net Income: $24.1 million (-32% YoY)  **[0000074208-23-000066_udr-20230930x10q.htm:3]** **[0000074208-24-000081_udr-20240930x10q.htm:3]**   
- SG&A: $20.85 million (**+37% YoY**)  **[0000074208-23-000066_udr-20230930x10q.htm:3]** **[0000074208-24-000081_udr-20240930x10q.htm:3]**   
- Interest Expense: $50.2 million (+13% YoY)  **[0000074208-23-000066_udr-20230930x10q.htm:3]** **[0000074208-24-000081_udr-20240930x10q.htm:3]**   

ede50a9bff7f6b5096555915bfbf124abe26baf193e6e07d2c56eb3bcb68fbbe

40a96bab7b27a4b824b074063c16e1eda8c15a1f32db924cf27635b3703a5964

1d350612298120b4b8b26a77ecdc059983b5a76363fc55d082f5dd48512387b9

| Year | Amount Due (in millions) | Debt Type                                   | Interest Rate (%) | % of Total Debt                                                                                     |
|----------|------------------------------|------------------------------------------------|-----------------------|--------------------------------------------------------------------------------------------------------|
| 2024     | $290.0  **[0000074208-24-000081_udr-20240930x10q.htm:24]** **[0000074208-24-000081_udr-20240930x10q.htm:27]**             | Unsecured Commercial Paper Program            | 5.0 **[0000074208-24-000081_udr-20240930x10q.htm:27]**           | 4.9% = (290.0 / 5,865.3) * 100  **[0000074208-24-000081_udr-20240930x10q.htm:24]** **[0000074208-24-000081_udr-20240930x10q.htm:28]**   **[0000074208-24-000081_udr-20240930x10q.htm:24]** **[0000074208-24-000081_udr-20240930x10q.htm:27]**                                                    |
| 2025     | $225.1 **[0000074208-24-000081_udr-20240930x10q.htm:28]**               | Unsecured Working Capital Credit Facility     | 5.7 **[0000074208-24-000081_udr-20240930x10q.htm:27]**           | 3.8% = (225.1 / 5,865.3) * 100  **[0000074208-24-000081_udr-20240930x10q.htm:24]** **[0000074208-24-000081_udr-20240930x10q.htm:28]**  **[0000074208-24-000081_udr-20240930x10q.htm:28]**                                                     |
| 2026     | $356.7 **[0000074208-24-000081_udr-20240930x10q.htm:28]**               | Secured Debt and Medium-Term Notes            | 2.89 **[0000074208-24-000081_udr-20240930x10q.htm:24]**          | 6.1% = (356.7 / 5,865.3) * 100  **[0000074208-24-000081_udr-20240930x10q.htm:24]** **[0000074208-24-000081_udr-20240930x10q.htm:28]**  **[0000074208-24-000081_udr-20240930x10q.htm:28]**                                                     |
| 2027     | $656.9 **[0000074208-24-000081_udr-20240930x10q.htm:28]**               | Term Loan and Medium-Term Notes               | 4.03 **[0000074208-24-000081_udr-20240930x10q.htm:24]**          | 11.2% = (656.9 / 5,865.3) * 100  **[0000074208-24-000081_udr-20240930x10q.htm:24]** **[0000074208-24-000081_udr-20240930x10q.htm:28]**  **[0000074208-24-000081_udr-20240930x10q.htm:28]**                                                    |
| 2028     | $466.5 **[0000074208-24-000081_udr-20240930x10q.htm:28]**               | Secured Debt and Medium-Term Notes            | 3.50 **[0000074208-24-000081_udr-20240930x10q.htm:24]**          | 8.0% = (466.5 / 5,865.3) * 100  **[0000074208-24-000081_udr-20240930x10q.htm:24]** **[0000074208-24-000081_udr-20240930x10q.htm:28]**  **[0000074208-24-000081_udr-20240930x10q.htm:28]**                                                     |
| 2029     | $615.8 **[0000074208-24-000081_udr-20240930x10q.htm:28]**               | Secured Debt and Medium-Term Notes            | 4.27 **[0000074208-24-000081_udr-20240930x10q.htm:24]**          | 10.5% = (615.8 / 5,865.3) * 100  **[0000074208-24-000081_udr-20240930x10q.htm:24]** **[0000074208-24-000081_udr-20240930x10q.htm:28]**  **[0000074208-24-000081_udr-20240930x10q.htm:28]**                                                    |
| 2030     | $830.6 **[0000074208-24-000081_udr-20240930x10q.htm:28]**               | Secured Debt and Medium-Term Notes            | 3.32 **[0000074208-24-000081_udr-20240930x10q.htm:24]**          | 14.2% = (830.6 / 5,865.3) * 100  **[0000074208-24-000081_udr-20240930x10q.htm:24]** **[0000074208-24-000081_udr-20240930x10q.htm:28]**  **[0000074208-24-000081_udr-20240930x10q.htm:28]**                                                    |
| 2031     | $760.9 **[0000074208-24-000081_udr-20240930x10q.htm:28]**               | Secured Debt and Medium-Term Notes            | 3.01 **[0000074208-24-000081_udr-20240930x10q.htm:24]**          | 13.0% = (760.9 / 5,865.3) * 100  **[0000074208-24-000081_udr-20240930x10q.htm:24]** **[0000074208-24-000081_udr-20240930x10q.htm:28]**  **[0000074208-24-000081_udr-20240930x10q.htm:28]**                                                    |
| 2032     | $427.0 **[0000074208-24-000081_udr-20240930x10q.htm:28]**               | Secured Debt and Medium-Term Notes            | 2.10 **[0000074208-24-000081_udr-20240930x10q.htm:24]**          | 7.3% = (427.0 / 5,865.3) * 100  **[0000074208-24-000081_udr-20240930x10q.htm:24]** **[0000074208-24-000081_udr-20240930x10q.htm:28]**  **[0000074208-24-000081_udr-20240930x10q.htm:28]**                                                     |
| 2033     | $650.0 **[0000074208-24-000081_udr-20240930x10q.htm:28]**               | Medium-Term Notes                             | 1.90 **[0000074208-24-000081_udr-20240930x10q.htm:24]**          | 11.1% = (650.0 / 5,865.3) * 100  **[0000074208-24-000081_udr-20240930x10q.htm:24]** **[0000074208-24-000081_udr-20240930x10q.htm:28]**  **[0000074208-24-000081_udr-20240930x10q.htm:28]**                                                    |
| 2034     | $600.0 **[0000074208-24-000081_udr-20240930x10q.htm:28]**               | Medium-Term Notes                             | 4.95  **[0000074208-24-000081_udr-20240930x10q.htm:28]** **[0000074208-24-000081_udr-20240930x10q.htm:47]**        | 10.2% = (600.0 / 5,865.3) * 100  **[0000074208-24-000081_udr-20240930x10q.htm:24]** **[0000074208-24-000081_udr-20240930x10q.htm:28]**  **[0000074208-24-000081_udr-20240930x10q.htm:28]**                                                    |

120efa3489dffd21a9b985bf67d4a569023b52c70d3642a53e47468fa7bb4a1a

- **Softness in the New York market**, which represents **8% of UDR's NOI**, with management noting declines from previous highs and being cautiously optimistic about improvement.  **[UDR_3372342_31]**
- **Negative new lease rate growth** in December (**-5.6%**) and January (**-3.6%**), indicating pricing pressures and potential challenges in achieving rent growth.  **[UDR_3372342_12]** **[UDR_3372342_20]**
- **Anticipated significant multifamily supply deliveries in mid-2024** could pressure rents and occupancy in UDR's markets, posing risks to revenue growth.  **[UDR_3372342_20]**

240d95b10f79ca41a2ace594691503d7a9c9ee5d2d55b5ef9f705a4730af8b7f

- **Management remains cautious and did not raise full-year guidance despite strong first-quarter performance**, citing concerns about macroeconomic uncertainty, elevated interest rates, and potential impacts from new supply during peak leasing season.  **[UDR_3382037_15]**
- **Same-store expenses increased by 7.5% year-over-year in Q1**, which could pressure margins.  **[UDR_3382037_2]**
- **Elevated levels of new supply in Sunbelt markets are causing UDR to remain cautious**, as these markets are exposed to potential negative impacts from increased competition, affecting occupancy and rental rates.  **[UDR_3382037_2]** ,  **[UDR_3382037_13]** ,  **[UDR_3382037_17]**

2b8c7b0821e3961080e9b534dd31354e9a0b85c012137f0436a6abdd066848ab

1. **Rent Growth Guidance**  
   **Q:** What's driving your blended rent growth guidance for the back half of the year?  
   **A:** Joseph Fisher explained that year-to-date market rent growth is up about **4%**, nearly **200 basis points** better than expected.  **[UDR_3395586_8]**  For the last five months, they're assuming about **60 basis points** in blended lease rate growth, incorporating conservatism due to supply and macro uncertainties.  **[UDR_3395586_8]** 

2. **Occupancy and Pricing Strategy**  
   **Q:** How are June and July trends in coastal markets versus the Sunbelt impacting your pricing strategy?  
   **A:** Michael Lacy noted that over the past 90 days, they averaged a **2.5%** blended growth, **100 basis points** over expectations.  **[UDR_3395586_7]**  May's strong performance led them to push market rents by about **2%** month-over-month, double the pre-COVID norm.  **[UDR_3395586_7]**  While occupancy dipped slightly—stabilizing at around **96.5%** on the East Coast and **96.2%** in the West Coast and Sunbelt—they're adjusting their strategy accordingly.  **[UDR_3395586_7]** 

3. **Impact of Supply and Concessions**  
   **Q:** How are supply and concessions affecting July performance and absorption levels?  
   **A:** Michael Lacy stated that concessions are around **half a week**, consistent with pre-COVID levels, with the Sunbelt slightly higher and coasts next to nothing.  **[UDR_3395586_11]**  The consumer remains healthy, with stable rent-to-income ratios at **22%**, and no signs of doubling up in units.  **[UDR_3395586_11]** 

4. **Operating Expenses and Upside**  
   **Q:** Where do you see the most room for upside in your guidance?  
   **A:** Michael Lacy expressed confidence in expenses, both controllable and non-controllable, reducing their midpoint guidance from about **5.25%** to **5%**.  **[UDR_3395586_13]**  Joseph Fisher added that real estate taxes could offer upside, potentially trending down to a **3–4%** increase, below initial expectations.  **[UDR_3395586_13]** 

5. **DCP Funding and Investment Strategy**  
   **Q:** Can we expect more DCP funding in the back half of the year?  
   **A:** Joseph Fisher noted that the increased guidance to **$15 million** is net of recent activities, including a **$35 million** investment in a Portland portfolio and repayments.  **[UDR_3395586_9]**  While no major discussions are underway for further deployments this year, they expect to be active next year as maturities approach.  **[UDR_3395586_9]** 

6dabfad277dde52664386f9461301777c66ba2282311772801f0d083dfff570a

- **UDR's customer experience project has effectively reduced resident turnover by approximately 300 basis points in Q2**, leading to improved retention over peers and providing confidence to push rental rates higher. This initiative could potentially drive **$15 million to $30 million** in value over the next couple of years.  **[UDR_3395586_12]** ,  **[UDR_3395586_13]**
- **UDR's data-driven approach to pricing and leasing strategies has allowed them to maintain strong occupancy at 96.8%**, adjusting rental rates to find market equilibrium and achieving positive results despite market volatility.  **[UDR_3395586_12]** ,  **[UDR_3395586_26]**
- **UDR maintains a strong balance sheet with nearly $1 billion in liquidity as of June 30**, and is strategically positioned to capitalize on future development opportunities with up to four potential starts in the next 12 to 18 months, aiming for development yields in the high 5% range.  **[UDR_3395586_15]** ,  **[UDR_3395586_20]**

d9568a73b7e4bcb39ef961eb4ae4ef1b9dee61869ab2921485a9c04d2c79733a

1. **DCP Dilution Impact**  
   **Q:** Explain the $0.025 per share dilution from DCP assets.  
   **A:** The company expects a **$0.025 per share dilution** due to taking ownership of two DCP assets. This includes a **$0.02** dilution from potentially acquiring a Philly asset if it's not refinanced, moving from a high-yield DCP investment to a lower-yield acquisition. Additionally, the assumption of **$75 million** in payoffs in the back half contributes to the remaining dilution.  **[UDR_3372342_8]** 

2. **Oakland Property Decision**  
   **Q:** Why not sell the Oakland Lake Merritt property?  
   **A:** Despite challenges in Northern California, the company believes holding the **Lake Merritt** property offers better value than selling it in a distressed market. They anticipate upside through real estate tax resets, increased income, and stabilization efforts, planning to reassess in a couple of years when market conditions improve.  **[UDR_3372342_9]** 

3. **Lease Rate Growth Outlook**  
   **Q:** Will lease rate growth bottom in first half and improve?  
   **A:** The company anticipates lease rate growth to average **0.6%** in the first half of 2024, similar to the second half of last year, with an expected increase to **1%** in the second half. Early trends show a promising **150 basis point** increase from December to January, suggesting potential improvement moving into 2025.  **[UDR_3372342_10]** 

4. **High Supply Market Guidance**  
   **Q:** How do you guide in high supply markets?  
   **A:** The company acknowledges facing elevated supply but notes that deliveries are similar to late 2023 levels. With strong occupancy and positive leasing trends, they believe they can navigate challenges, especially entering a seasonally stronger period, and are seeing encouraging signs that may indicate a market floor.  **[UDR_3372342_16]** 

5. **Recovery in Northern California & Seattle**  
   **Q:** What's the recovery trend in Northern California and Seattle?  
   **A:** In San Francisco, occupancy is around **97% to 97.5%**, with concessions decreasing and rents starting to rise. They observed a **700 to 750 basis point** improvement in rental blends from December to January. In Seattle, rental blends increased by **250 basis points**, driven by improved demand and reduced concessions, particularly in the Bellevue area.  **[UDR_3372342_18]** 

6. **DCP Book Strategy**  
   **Q:** Will you shrink the DCP book or reinvest?  
   **A:** While some natural shrinkage may occur due to potential asset takeovers and **$75 million** in anticipated payoffs, the company intends to redeploy capital into traditional DCP investments or recaps. They do not plan to significantly reduce the DCP portfolio further and aim to maintain or grow it over time.  **[UDR_3372342_13]** 

7. **Distressed Real Estate Opportunities**  
   **Q:** Will distressed real estate present more opportunities?  
   **A:** The company expects some developers to face distress, but widespread distressed pricing is unlikely due to strong capital availability from sources like Fannie Mae and Freddie Mac. They anticipate selective opportunities rather than a significant influx of distressed assets, as multifamily remains attractive to investors.  **[UDR_3372342_17]** 

8. **Revenue Generation & Cost Savings**  
   **Q:** What are current opportunities for revenue and cost savings?  
   **A:** Initiatives such as WiFi rollouts are expected to contribute about **$6 million** in incremental revenue in 2024, with **20,000 units** installed and **12,000** more planned. The company is also utilizing AI for fraud detection and enhancing customer experience to reduce turnover by **100 basis points**, leading to additional revenue and expense savings.  **[UDR_3372342_19]** 

9. **Occupancy Levels vs Guidance**  
   **Q:** Occupancy in January was higher; why is guidance flat?  
   **A:** January's elevated occupancy of **97.2%** is likely a peak. The company plans to trade some occupancy for rent growth in the spring, expecting occupancy to adjust to around **97%** or the high **96%** range as they push rental rates during the leasing season.  **[UDR_3372342_12]** 

10. **Renewal Rate Growth Assumption**  
    **Q:** Why is renewal rate growth assumed at 3% in 2024?  
    **A:** The company anticipates renewal rate growth of **3%** for the year, starting with renewals at **3.5% to 4%**, which typically negotiate down by about **50 basis points**. They plan to adjust renewals based on market rent movements, aiming for consistency throughout the year without significant regional disparities.  **[UDR_3372342_14]** 

11. **Sunbelt Market Expectations**  
    **Q:** What's the outlook for Sunbelt markets?  
    **A:** The company expects full-year rental blends in the Sunbelt to contribute about **negative 100 basis points** to revenue, factoring in higher supply. However, other income initiatives are expected to contribute **90 basis points**, double the portfolio's average, helping offset challenges. They anticipate continued strong job and wage growth supporting absorption.  **[UDR_3372342_11]** 

12. **Bad Debt Reserves in Guidance**  
    **Q:** What's the bad debt reserve in guidance?  
    **A:** The company assumes a flat bad debt reserve year-over-year, maintaining a collection rate of **98.5%**, consistent with the last six months. While bad debt levels have stabilized, they are not factoring potential improvements from fraud prevention efforts in their guidance, though they see upside potential.  **[UDR_3372342_21]** 

13. **Expense Growth in Sunbelt**  
    **Q:** What's expense growth expectation in the Sunbelt?  
    **A:** Expense growth in the Sunbelt is slightly higher, within about **100 basis points** of the overall portfolio, due to factors like increased personnel costs amid supply pressures and expenses related to WiFi rollouts. The overall expense growth guidance midpoint is **5.25%**.  **[UDR_3372342_22]** 

14. **Concessions in San Francisco & Seattle**  
    **Q:** What concessions are being offered in SF and Seattle?  
    **A:** In San Francisco, concessions have been reduced from about **three weeks** to approximately **one and a half weeks**, leading to improved rental trends. In Seattle, the company hasn't offered concessions over the past year, instead adjusting market rents as needed, and currently offers no concessions.  **[UDR_3372342_26]** 

15. **Capital Deployment & Hurdle Rates**  
    **Q:** What would make you more active in capital deployment?  
    **A:** The company is cautiously considering capital deployment, focusing on opportunities with joint venture partners like LaSalle. They've noted improvements in debt costs and asset pricing, and are contemplating development projects with current NOI yields in the **5.5% to 6%** range, potentially delivering into a stronger market in 2025 or 2026.  **[UDR_3372342_27]** 

16. **Renewal Rates & Move-out to Buy**  
    **Q:** Are more households choosing to rent over buying?  
    **A:** High affordability barriers in the single-family housing market are leading more households to rent. The company's move-outs to buy are significantly below historical levels, indicating that residents are staying in the renter pool, which supports retention and pricing power.  **[UDR_3372342_25]** 

17. **Innovation and Other Income**  
    **Q:** Has the outlook for innovation income changed?  
    **A:** The company's outlook remains consistent, expecting **$5 million to $10 million** in contributions from innovation and other income in 2024. Initiatives like the WiFi rollout, with **20,000 units** installed and more planned, are progressing as expected, with greater benefits anticipated in the coming years.  **[UDR_3372342_30]** 

18. **DCP Exposure and Impairments**  
    **Q:** How many DCPs are on cash basis vs accruing?  
    **A:** The majority of DCP investments are accruing interest due to their development stage. As assets reach operational status and generate cash flow, they begin paying the senior loan with cash, but the company's preferred position typically continues to accrue until specific milestones are met.  **[UDR_3372342_28]** 

19. **State of Emergency in SoCal**  
    **Q:** Are renewal rates impacted by SoCal's state of emergency?  
    **A:** Under price gouging regulations during the state of emergency, rent increases are capped at a maximum of **10%**. The company reports minimal impact on operations, with only about **10 to 12 units** affected by issues like leaks, and continues to monitor the situation closely.  **[UDR_3372342_29]** 

20. **Softness in New York Market**  
    **Q:** What's happening in the New York market?  
    **A:** The company is experiencing seasonal softness in New York, particularly in the financial district. Rental blends improved by about **150 basis points** from December to January, moving from negative **1.2%** to positive **0.2%**, and they are cautiously optimistic as they observe market trends and adjust strategies accordingly.  **[UDR_3372342_31]** 

8ccc139b12b69552793dd4ebb90e79f658fba8dfb4a379ca69852a995079b805

1. **Same-Store Revenue Exceeding Expectations**  
   **Q:** How did same-store revenue perform versus expectations?  
   **A:** Management reported that same-store revenue exceeded expectations in the first quarter, with blends running about **20 basis points higher** to start the year and trending **100 basis points higher** in April and May compared to the original business plan. If sustained, this **1% increase** could add approximately **$8 million** in revenue, translating to about **50 basis points** on the revenue line.  **[UDR_3382037_6]** 

2. **Occupancy and Other Income Strength**  
   **Q:** How are occupancy and other income compared to initial expectations?  
   **A:** Occupancy was about **10 to 20 basis points higher** than expected in the first quarter, currently at **96.9%**, and is expected to decrease slightly as blends are pushed higher. Other income started the year **10% above last year**, trending **200 to 300 basis points** higher than originally thought, driven by successful initiatives like the bulk Internet rollout.  **[UDR_3382037_6]** ,  **[UDR_3382037_9]** 

3. **Renewal Rates and Retention**  
   **Q:** What are the trends in renewal rates and turnover?  
   **A:** Renewal offers are going out at around **3.8%** through June and **4.5%** for July, indicating a more aggressive stance while pushing market rents. The gap between new and renewal leases, which was about **600 basis points** in the first quarter, is expected to narrow to **300 to 400 basis points** in the second quarter. High retention rates are helping to drive revenue growth ahead of expectations.  **[UDR_3382037_7]** 

4. **Leasing Trends and Market Performance**  
   **Q:** Which markets are driving leasing improvements into May?  
   **A:** Improvements are driven by strength in West Coast markets like **Seattle and San Francisco**, and East Coast markets like **New York**, where demand is picking up. **Washington D.C.**, comprising **15% of NOI**, is showing strong growth with blends of **4% to 5%**, aided by aggressive renewals and sticky tenants. The Sunbelt is also showing positive month-over-month momentum.  **[UDR_3382037_8]** 

5. **Sunbelt Market Outlook**  
   **Q:** Is the worst behind in the Sunbelt, and what's the outlook?  
   **A:** While acknowledging that supply is increasing and peak deliveries are approaching, management is cautiously optimistic due to stronger job growth and record absorption. Concessions have improved significantly, with **1.5 weeks** in Texas and about **half a week** in Florida. Occupancy remains healthy at around **96.5% to 96.7%**, and blends are improving month-over-month, from **negative 2.2%** in the first quarter to **negative 1.5%** in April. Other income is above **10%** in the region, driven by initiatives like the bulk Internet rollout.  **[UDR_3382037_9]** ,  **[UDR_3382037_10]** 

6. **Other Income Outperformance**  
   **Q:** What's driving the outperformance in other income?  
   **A:** Other income is growing at **10%**, outperforming the initial expectation of **5% to 7%** growth. This is largely due to the bulk Internet rollout, contributing about **$1 million** in the quarter compared to **$100,000** last year, alongside initiatives like renting out common areas, additional parking, short-term furnished rentals, and package lockers.  **[UDR_3382037_9]** ,  **[UDR_3382037_12]** 

7. **Expense Trends in Certain Markets**  
   **Q:** What's causing expense increases in markets like Seattle and Boston?  
   **A:** Expense growth in markets like Seattle and Monterey Peninsula is driven by higher taxes, with Seattle's taxes up about **9%**, and increased utility costs, with Monterey Peninsula's utilities up **7%**. Additionally, overall expenses were impacted by the anniversary of the CARES Act, adding about **350 basis points** to growth rates.  **[UDR_3382037_12]** 

8. **Bad Debt Trends**  
   **Q:** How are bad debts trending, and any expected improvements?  
   **A:** Bad debts are running at about **1.5%**, totaling around **$25 million** annually. Trends are improving with delinquency balances decreasing, and management is optimistic about further reductions through actions like ID and income verification, adjusting deposit requirements, and raising credit score thresholds.  **[UDR_3382037_15]** 

9. **Class A vs. B Performance**  
   **Q:** How is Class A performing versus Class B properties?  
   **A:** Class B properties outperformed Class A by about **50 basis points** on blended lease rates, with B's at **1%** growth versus A's at **0.5%**. This suggests that supply dynamics are impacting Class A more than Class B in the Sunbelt, aligning with traditional trends.  **[UDR_3382037_13]** 

5cf268af3c13ce35e0497f4e3916bac6c4f826225b5dae99509db0e731c982b3

- **Same-store revenue growth is exceeding expectations**, with blended lease rates running about **100 basis points higher** than planned and **other income up 10% year-over-year**, contributing to strong financial performance.  **[UDR_3382037_6]** ,  **[UDR_3382037_13]**
- **Coastal markets are outperforming**, with **occupancy rates around 97%-98%** and **blended lease growth of 4%-4.5%** in **Seattle, San Francisco, and New York**, driven by return-to-office trends and limited supply.  **[UDR_3382037_17]** ,  **[UDR_3382037_15]**
- **UDR has a strong balance sheet** with excellent liquidity, positioning the company to take advantage of investment opportunities through joint ventures and development projects when market conditions are favorable.  **[UDR_3382037_19]**

66009f2d221219c4892ef63bbd1041813fa0cc84d10169ba7bb76682eb0339f9

- **UDR's innovative initiatives**, including the property-wide WiFi rollout and customer experience projects, are expected to add approximately **$5 million to $10 million** to 2024 same-store revenue growth, equating to **45 basis points of growth**.  **[UDR_3372342_19]**
- **Resident retention has improved for 9 consecutive months**, leading to **turnover being 400 basis points better than the historical average in Q4**, which positively impacts occupancy and reduces costs.  **[UDR_3372342_19]**
- **Positive leasing momentum** is evident with **blended lease rate growth improving by 150 basis points from December to January**, and occupancy reaching a high of **97.2% in January**.  **[UDR_3372342_12]** **[UDR_3372342_20]**

ab799ce88bb4e194bd6dc060f5b00a8e4d61783b44ed5e00f2db7be96490f6bb

1. **Sunbelt Rent Growth Outlook**  
   **Q:** When will rent growth in Sunbelt markets normalize?  
   **A:** Management expects Sunbelt markets like Orlando, Tampa, and Dallas to reach equilibrium by mid-2025, allowing rent growth to return to more normal levels of around **2% to 3%**, potentially improving in the back half of the year.  **[UDR_3405193_12]** 

2. **Other Income Growth Outlook**  
   **Q:** Will other income growth in '25 match '24 levels?  
   **A:** Management anticipates other income growth in 2025 to be similar to 2024, at about **7% to 8%**, driven by initiatives like WiFi rollout, which is expected to generate close to double the **$5 million** NOI achieved in 2024.  **[UDR_3405193_8]**  Other initiatives like customer experience and fraud prevention will also contribute to the bottom line.  **[UDR_3405193_8]** 

3. **Turnover Reduction Impact**  
   **Q:** How will turnover trends affect expenses in '25?  
   **A:** Continued reduction in turnover due to the customer experience project is expected, aiming for a 5%-10% sustainable advantage worth **$15 million to $30 million** in value.  **[UDR_3405193_11]**  Saving each resident equates to about **$5,000** in NOI, positively impacting expenses.  **[UDR_3405193_11]** 

4. **Bad Debt Improvement**  
   **Q:** What are expectations for bad debt levels next year?  
   **A:** Management expects to end the year with bad debt just over **1%**, better than the initial forecast of 1.5%.  **[UDR_3405193_13]**  While they anticipate some continued improvement due to proactive screening, they do not expect to return to the historical average due to regulatory factors.  **[UDR_3405193_13]** 

5. **Capital Allocation Plans**  
   **Q:** How are you approaching capital deployment and buybacks?  
   **A:** The company maintains a capital-light approach and is not currently considering stock buybacks at present prices.  **[UDR_3405193_16]**  Instead, they focus on recycling capital within the Debt and Preferred Equity program, joint venture acquisitions, and exploring creative OP unit transactions.  **[UDR_3405193_16]** 

6. **Short-Term Lease Effects**  
   **Q:** Were short-term leases higher than normal this year?  
   **A:** Short-term leases were slightly higher than usual, especially in coastal markets due to interns and seasonal workers.  **[UDR_3405193_14]**  While they impact turnover, the company manages them for profitability through higher premiums and fee income.  **[UDR_3405193_15]** 

a40bb0b514336e564c931d215d181e00706139e874b34d513b71cb9dbe56b8bf

- **UDR's aggressive rent increase strategy led to a loss in occupancy**, indicating limitations in pricing power as they had to pull back rents to stabilize occupancy after the market reacted negatively.  **[UDR_3395586_26]** ,  **[UDR_3395586_21]**
- **Deceleration in new lease rates across markets**, including strong East Coast markets like New York, Baltimore, and D.C., where growth declined from 5%-6%, suggests weakening rental demand and potential revenue pressures.  **[UDR_3395586_19]**
- **High levels of new apartment supply expected in upcoming quarters may increase competitive pressure**, leading to potential occupancy challenges and the need for concessions, especially in Sunbelt markets where new lease rates are down 5%-6% in July.  **[UDR_3395586_19]** ,  **[UDR_3395586_22]**

7b12693e1705071091431e5ef9a03e6b0cd10ef692e68b5c04f3c15e48eca730

- **Elevated apartment supply has led to increased concessions and pressure on lease growth rates**, particularly in markets like **Denver and Philadelphia**, where concessions have increased to **2 to 3 weeks** recently.  **[UDR_3362679_23]**
- **UDR expects a below-average trend in blended lease rate growth and revenue in 2024** due to elevated supply and potentially lower demand, indicating that next year's rent growth may be challenged.  **[UDR_3362679_9]**
- **Bad debt reserves have increased by $900,000 in the quarter**, with the net accounts receivable reserve reaching **$9 million**, suggesting potential challenges in collections and higher uncollectible amounts.  **[UDR_3362679_25]**

3d9197e0b529a2ec6bb2fecdd79644e489921367cb227dd74f0519ecd4599c4c

- **UDR's diversified portfolio, with a balanced mix of A and B quality properties, has historically insulated the company during downturns and provides opportunities for growth through redevelopment and operational efficiencies. The company continues to see value in its B-quality properties, which can offer more margin upside when brought onto their operating platform.**  **[UDR_3362679_30]**
- **The company's innovative initiatives, such as rolling out their Internet program, are expected to significantly increase other income. They are achieving incremental revenue of **$50 per month per apartment home** at a nearly **75% margin**, which is anticipated to contribute **50 basis points** of other income growth next year. This additional income is considered resilient and "pretty sticky in nature," enhancing overall earnings even as rent growth moderates.**  **[UDR_3362679_17]**
- **UDR's strong liquidity and investment-grade balance sheet position the company to be opportunistic in capital deployment, including potential accretive transactions with its joint venture partner. The company is actively seeking transactions at mid to high 5% cap rates, where they can layer on their platform to achieve an additional **10% upside in NOI**, plus recurring fee income, making the effective yield compelling and driving forward accretion.**  **[UDR_3362679_18]**

50cca603514373a2268fe1a8c00e00ff18cc22a511041770fa79b1ca2a0856dd

UDR Inc (UDR)

Financials