Udr, Inc. · NYSE:UDR

Udr — FY2015 Earnings Presentation

24 slides from Udr's earnings presentation, Feb 2, 2016

  1. Slide 1: Opening doors to the future

    TEBE opening doors to the future Exhibit 99.3 Katella cau 1 Orange County, jeveloped West Coast Development JV UDR, Inc. (NYSE: UDR), has a demonstrated history CFO: of successfully managing, buying, selling, developing Tom Herzog and redeveloping attractive real estate properties in 720.283.6139 pr

  2. Slide 2: Table of Contents

    LUBY = Opening doors to the future’ TABLEOF CONTENTS ~e | Strategic Objectives - Overview Review of 2015 — Results vs. Plan Strategic Objectives — In Detail Operations Capital Allocation Balance Sheet and Funding Sources Cash Flow, Dividend and NAV Growth 2016 / 2017 Expectations 2016 Market Growth

  3. Slide 3: Strategic Objectives - Overview

    STRATEGIC OBJECTIVES - OVERVIEW We remain focused on executing UDR’s long-term strategic objectives that will continue to generate safe, consistent cash flow growth and optimize shareholder value 1 | Drive organic growth / | 2 | Allocate capital to 1 expand margins and 2 accretive opportunities, imp

  4. Slide 4: Review of 2015 — Results vs. Plan

    REVIEW OF 2015 — RESULTS VS. PLAN 2015 results kept us in-line with or ahead of the majority of objectives set forth in previous 3-year Plans 2013A-2015A VS. ORIGINAL 2013-2015 OPERATIONS THREE-YEAR PLAN (?) SS Revenue Growth +225 bps SS Expense Growth (85) bps SS NOI Growth 4375 bps CAPITAL ALLOCAT

  5. Slide 5: Operational Excellence

    OPERATIONAL EXCELLENCE Our best-in-class operating platform is a competitive advantage that differentiates UDR and continues to generate strong results versus peers ... LED TO STRONG SS REVENUE GROWTH WHICH HAS OUTPACED THAT OF PEERS SINCE INITIATING OUR STRATEGIC PLAN IN 201312) 6.0% 45% 40% . | |

  6. Slide 6: Operations — Sustainable Improvement

    OPERATIONS — SUSTAINABLE IMPROVEMENT ~ « Implementing operating efficiency initiatives that boost revenue growth or reduce expenses will continue to be a part of UDR’s DNA * Simplify * 6 Day reduction since documentation 2012 through lea: process and provide expiration wangesnent better audit trail

  7. Slide 7: Operations — Operating Initiatives

    OPERATIONS — OPERATING INITIATIVES The impact to our bottom-line from some of our current operating initiatives is quantified below 1 REDUCE DAYS VACANT + 6 days recovered since 2012 Impact of 6 Da 4 A P . YB $6.6M in Additional NOI Reduction 2 INCREASE MAINTENANCE STAFF EFFICIENCY * Use efficiency

  8. Slide 8: Capital Allocation - Development

    CAPITAL ALLOCATION - DEVELOPMENT 8 UNDERWAY AND COMPLETED, NON-STABILIZED DEVELOPMENT * Size: 1,689 homes at 100% * Completion Sete ot remaining * Cost: $670M, $587K per home at 100% underway develop! * Spent to Date: $370M (~55% of equity > 2016: S162 commitment) > 2017: $166M * Wtd. avg. yield vs.

  9. Slide 9: Capital Allocation — Value Creation

    CAPITAL ALLOCATION — VALUE CREATION 8 Development remains our most attractive capital allocation opportunity Targeted Average Initial Returns Available to UDR = Stabilized Yield: 6.3% 2% 3% 4% 6% 7% 8% Cash flow/sh and NAV/sh growth are expected to remain strong as developments stabilize Under Const

  10. Slide 10: UDR's Developments

    UDR’S DEVELOPMENTS Some of our recent developments are presented below STABILIZED, NON-MATURE DEVELOPMENTS Beach & Ocean | Huntington Beach, CA. Completed: 2014 UNDER CONSTRUCTION DEVELOPMENTS 3038 Wishife | Los Angoles/¢A Pcie ny IH Estimated Completion: 2017 Estimated Con PY

  11. Slide 11: Balance Sheet and Funding Sources

    BALANCE SHEET AND FUNDING SOURCES 4 Our debt metrics will continue to improve organically... METRIC YE 2015A YE 2016E YE 2017E Debt-to-Assets 34.6% 33% to 35% 32% to 34% Net Debt-to-EBITDA 5.7x 5.3x to 5.7x 5.0x to 5.4x Fixed Charge Coverage 41x 4.1x to 4.5x 4.3x to 4.7x ..and we will continue to fu

  12. Slide 12: Cash Flow, Dividend & NAV Growth

    CASH FLOW, DIVIDEND & NAV GROWTH ® After strong AFFO/sh growth in 2015, solid operating results and earn-in offset by reloading the development pipeline) are driving cash flow, dividend and NAV growth in 2016 AFFO/sh Growth () NAV/sh Growth ®) 12% —_ 10% 11% 6:9% ao 5-8% 12% 9-11% 8% — rw 8-10% — 6%

  13. Slide 13: 2016 / 2017 Expectations

    2016 / 2017 EXPECTATIONS 13 $ IN MILLIONS, EXCEPT PER SHARE 20158 2016E 2017E | EARNINGS FFO per Share $1.66 $1.75 to $1.81 $1.88 to $1.94 FFO as Adjusted per Share $1.67 $1.75 to$1.81 $1.86 to $1.92 AFFO per Share $1.51 $1.59 to $1.65 $1.70 to $1.76 Wed. Avg. Dil. Shares/Units (M) 276.7 N/A N/A Ann

  14. Slide 14: 2016 Market Growth Expectations

    2016 MARKET GROWTH EXPECTATIONS 14 UDR Same-Store Markets Revenue Growth) % of SS NOI: 44% % of Total NOI: 39% Northeast @ > 6.0% Revenue Growth \r © 5.5% to 6.0% Revenue Growth Southwest: @ <5.5% Revenue Growth % of SS NOI~ dof Total Ol? 1% % of Sof ais ais Total Total Market: NOI Market NOI Market

  15. Slide 15: Definitions and Reconciliations

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  16. Slide 16: Definitions and Reconciliations

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  17. Slide 17: Definitions and Reconciliations

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  18. Slide 18: Definitions and Reconciliations

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  19. Slide 19: Definitions and Reconciliations

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  20. Slide 20: Forward Looking Statements

    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,” “ane “will” “seeks,” “estimates” and variations of such words a ‘expressions are int

  21. Slide 21: Notes

    NOTES a

  22. Slide 22: Notes

    NOTES 2

  23. Slide 23: Notes

    NOTES 23

  24. Slide 24: Investor Relations Contact

    Investor Relations Contact: Shelby Noble snoble@u

UDR — FY2015 Earnings Presentation on 6ix