Udr, Inc. · NYSE:UDR
Udr — Investor Presentation (May 2025)
29 slides from Udr's investor presentation, May 5, 2025
Slide 1: Investor Presentation May 2025
101 N. Meridian Tampa, FL INVESTOR PRESENTATION May 2025
Slide 2: Accretive Capital Allocation and Value Creation
fo} Accretive Capital Allocation and Value Creation @® Resident Attributes @ Strong, Liquid, Flexible Balance Sheet M ® ESG and Sustainability Leadership + (5) The Case for Apartment REITs Arbors at Maitland Summit SSS Orlando, FL 2
Slide 3: Recent Updates - 2025 Guidance (as reported April 30, 2025)
RECENT UPDATES - 2025 GUIDANCE (AS REPORTED APRIL 30, 2025) Key operating metrics across revenue and expense growth are trending above the midpoints of our full-year outlook, including occupancy of nearly 97% and continued sequential improvement in blended lease rate growth to start the second quart
Slide 4: Recent Updates - Sector Trends
RECENT UPDATES - SECTOR TRENDS™ Demographics, affordability, and demand/supply factors continue to support rentership. Steady Rent-to-Income Ratio (“R/1") Median resident R/I ratio in the low-20% range; average UDR household income is 2.5x higher than the median MSA income. Py patio. —LongTerm Avera
Slide 5: Recent Updates - Supply Outlook
RECENT UPDATES - SUPPLY OUTLOOK Multifamily supply is expected to decline to historical average in 2025 with completions expected to trend even lower in 2026. National Multifamily Deliveries UDR Market Multifamily Deliveries mEEUnits ——% of Stock —% of Stock (Historical Avg.) mEEUnits ——% of Stock —
Slide 6: UDR at a Glance
UDR AT A GLANCE()?) UDR is a full-cycle investment that consistently generates strong total shareholder return (“TSR”) through innovation, best-n- class operations, and disciplined capital allocation. 3.8% Dividend Yield S&P 500 60,000 Multifamily § Apartment REIT Homes 52 Year History Full-Cycle §
Slide 7: UDR at a Glance - Diversified Portfolio Composition
UDR AT A GLANCE - DIVERSIFIED PORTFOLIO COMPOSITION UDR is diversified across markets and price points to generate robust growth with less risk. PsP sn Northeast/Mid-Atiantic: = A-Quality B-Quality 40% of NOI 56% = Coastal A = Sunbelt A Coastal B ‘Sunbelt B 64% 54% = Urban = Suburban West Coast: 35%
Slide 8: UDR Value Proposition: Innovation = Repeatable Value Creation
UDR VALUE PROPOSITION: INNOVATION = REPEATABLE VALUE CREATION UDR innovation initiatives have consistently driven high-single-digit y/y growth in other income, resulting in approximately $40M of incremental run-ate NOI since 2018, equating to $800M of value creation.) Current and identified future i
Slide 9: Accretive Capital Allocation
ACCRETIVE CAPITAL ALLOCATION UDR has a track record of being a proficient steward of capital and can utilize various external growth value creation drivers. Capital Allocation During the Apartment Cycle ($M) $2,000 40% ee FSSSUDR Prem/(Disc.)to NAV (hs) —=eNet Acquisitions (rhs) $1,500 20% Issue equ
Slide 10: Accretive Capital Allocation
ACCRETIVE CAPITAL ALLOCATION Our wide variety of value creation drivers provides UDR the latitude to pivot toward investment opportunities that generate the highest risk-adjusted IRRs and the greatest eamings/NAV accretion. These include: DEVELOPMENT REDEVELOPMENT Villaggio | Dallas, TX 401 N. Merid
Slide 11: Resident Attributes and Trends
RESIDENT ATTRIBUTES AND TRENDS Balanced resident composition minimizes risk of exposure to specific age cohorts. 30% ‘Average Resident Age: 36 27% Median Reser == % 20% 18% 0% Under 25 45+ Pre-COVID: Feb 2020 = Current Resident Turnover + Healthy demand and our focus on resident satisfaction has hel
Slide 12: Strong, Liquid, Flexible Balance Sheet
STRONG, LIQUID, FLEXIBLE BALANCE SHEET Sectorleading weighted average interest rate, the lowest percentage of maturing debt among peers over the next 3- and 5- year periods, robust liquidity (>$1 billion), and strong leverage metrics support growth opportunities and reduce risk. Strong Leverage Metr
Slide 13: ESG and Sustainability Leadership
ESG AND SUSTAINABILITY LEADERSHIP UDR is a recognized global ESG leader and is committed to further enhancing our ESG profile. Sustainable Development Top Workplace Sector Leader SDG Alignment Named the 2024 Top Selected by USGBC as a LEED Recognized by GRESB as a Aligned with 40 United Workplaces w
Slide 14: Appendix
101 N. Meridian Tampa, FL APPENDIX
Slide 15: The Case for Apartment REITs
THE CASE FOR APARTMENT REITS Apartment REIT TSR has outperformed other REITs and the broader market by a wide margin since 2000 due to: Ongoing shortage Increased Housing's status as Better long-term NOI of U.S. housing propensity to rent a necessary, non- J growth + lower capex discretionary expens
Slide 16: Apartment Demographics and Fundamentals
APARTMENT DEMOGRAPHICS AND FUNDAMENTALS Long-term demographics remain strong for apartments. Since 2010, approximately 30% fewer total housing units have been produced versus total households formed over the same period. U.S. POPULATION BY AGE COHORT (MILLIONS) oe 1m Domestically Born = Foreign Born
Slide 17: Apartment Demographics and Fundamentals
APARTMENT DEMOGRAPHICS AND FUNDAMENTALS Low absolute and relative affordability represent a barrier to single-family ownership, resulting in a larger potential multifamily renter pool. Third-party forecasts indicate approximately 5 million additional apartments will be needed by 2030 to satisfy hous
Slide 18: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements made in this presentation may constitute “forward-looking statements.” Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “outlook,” “guidance,” “estimates” and variations of such words and similar expressi
Slide 19: Definitions and Reconciliations
nasdaq Celebrates DEFINITIONS AND RECONCILIATIONS May 2025
Slide 20: Definitions and Reconciliations A2
DEFINITIONS AND RECONCILIATIONS A2 ‘Acquired Communities: The Company defines Acquired Communities as those communities acquired by the Company, other than development and redevelopment activity, that did not achieve stabilization as of the most recent quarter. Adjusted Funds from Operations (“AFFO’
Slide 21: Definitions and Reconciliations A3
DEFINITIONS AND RECONCILIATIONS AS Contractual Return Rate: The Compary defines Contractual Retum Rate as the rate of return or interest rate that the Compary is entitled to receive on a preferred equity investment or loan, as specifiedin the applicable agreement. Controllable Expenses: The Company
Slide 22: Definitions and Reconciliations A4
DEFINITIONS AND RECONCILIATIONS AA Effective Blended Lease Rate Growth: The Compary defines Effective Blended Lease Rate Growth as the combined proportional growth as a result of Effective New Lease Rate Growth and Effective Renewal Lease Rate Growth. Management considers Effective Blended Lease Rat
Slide 23: Definitions and Reconciliations A5
DEFINITIONS AND RECONCILIATIONS AS Funds From Operations (“FFO") attributable to common stockholders and unitholders: The Compary defines FFO attributable to common stockholders and unitholders as net income/(loss) attributable to common stockholders (computed in accordance with GAAP), excluding imp
Slide 24: Definitions and Reconciliations A6
DEFINITIONS AND RECONCILIATIONS A6 Net Operating Income ("NOI"): The Company defines NOI as rental income less direct property rental expenses. Rental income represents gross market rent and other revenues less adjustments for concessions, vacancy loss and bad debt. Rental expenses include real esta
Slide 25: Definitions and Reconciliations A7
DEFINITIONS AND RECONCILIATIONS AT QID SameStore Communities: The Compary defines QTD Same-Store Communities as those communities Stabilized for five full consecutive quarters. These communities were owned and had stabilized operating expenses as of the beginning of the quarter in the prior year, we
Slide 26: Definitions and Reconciliations A8
DEFINITIONS AND RECONCILIATIONS AS 2025 Guidance: All guidance is based on current expectations of future economic conditions and the judgment of the Company'smanagement team. The following reconciles from GAAP Net income/(loss) per share for the second quarter of 2025 and full-year 2025 to forecast
Slide 27: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS Quarter Ended Coverage Ratios March 31, 2025 Net income/loss) $ 82071 Adjustments: Interest expense, including debt extinguishment and other associated costs 4AT7OL Real estate depreciation and amortization 161,394 Other depreciation and amortization 7.067 Tax provisi
Slide 28: Definitions and Reconciliations A10
DEFINITIONS AND RECONCILIATIONS AO Jn thousands, except per share and unit emourts 2025, 2024 [Net incame/(loss) attributable t common swrekhoers S$ 75514 $ aigis Real estate depresaton and amortzation Noncontotinginterests Ras! extste dapranaton and amortzaton on unconsodetd joint ventures Net (gen
Slide 29: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements made in this presentation may constitute “forward-looking statements.” Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “outlook,” “guidance,” “estimates” and variations of such words and similar expressi