Slide 1: Investor Presentation June 2024
ar 7 o ‘4 = Oa, . ay 2 a om INVESTOR PRESENTATION JUNE 2024 Columbus Square New York, NY
Slide 2: Table of Contents
A) ~. TABLE OF CONTENTS C3} Recent Updates (7) UDR at a Glance F NM al et 10) Innovation and Competitive Advantages Qe UDR Value Proposition fe Accretive Capital Allocation and Value Creation 1@ Market and Resident Attributes
Slide 3: Recent Updates - UDR
RECENT UPDATES - UDR 1Q 2024, April, and May effective blended lease rate growth improved sequentially, occupancy remained high, concession usage declined, and other income contributed to revenue growth. We expect June operating results will be similar to May. Same-sire Operaung tren’ Average Physic
Slide 4: Recent Updates - 2024 Guidance
RECENT UPDATES - 2024 GUIDANCE SSREV Growth SSREV Growth, by Region Qe a0% Hien 40% a6 20% igs 3.0% ign 3.0% % 20% 2% 0.00% gy 10% 19% or ow Low. 10% on 10% Low. 0.0% a6 o. a 2s Low (209% 00% Oimom Gamin Alended tease nowtonand ——_Oceupancy 2004 Tot Fast Coast /MidAtlanic__ West Coast unter (embedie
Slide 5: Recent Updates - Sector Trends
RECENT UPDATES - SECTOR TRENDS“) Demographics, affordability, and demand/supply factors continue to support rentership. Steady Rent-to-Income Ratio (“R/I") Median resident R/I ratio in the low/mid-20% range Fi Ratio (hs) —LongT erm Avg. R/ Ratio Ihs) —— Less Expensive to Rent vs. Own (rs) Attractive
Slide 6: Recent Updates - Supply Outlook
RECENT UPDATES - SUPPLY OUTLOOK Record levels of new multifamily deliveries expected in 2024, before trending lower towards historical averages by 2H 2025. National Multifamily Deliveries UDR Market Multifamily Deliveries mE Units —% of Stock mEEUnits. —=% of Stock 160,000 0.8% 70,000 0.8% 60,000 v
Slide 7: UDR at a Glance
UDR AT A GLANCE?) UDR is a full-cycle investment that consistently generates strong total shareholder return (“TSR”) through innovation, bestin- class operations, and disciplined capital allocation. 45% Dividend Yield Full-Cycle Continuous 21 Markets Investment § Innovation Multifamily REIT Apartmen
Slide 8: 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. Northeast/Mid Atlantic: 40% of NOI West Coast 35% of NOI Sunbe! mUDR = Peer Average Price Point and tion Within Market = A-Quality B-Quality 56% = Coastal
Slide 9: UDR Value Proposition
UDR VALUE PROPOSITION Durable and Repeatable Competitive Advantages, Innovation Repeatable ec Differentiated Investment G° Operations Market Selection - Self-service and improved - Predictive analytics and Durable competitive resident experience qualitative analyses to advantages boost yields help i
Slide 10: Innovation = Repeatable, Consistent Value Creation
INNOVATION = REPEATABLE, CONSISTENT VALUE CREATION UDR’s focus on innovation has resulted in (a) approximately $30M of incremental run-rate NOI since 2018, equating to $600M of value creation.) (b) better than peer average FFOA per share growth in 7 of the past 10 years, and (c) an approximate 200 b
Slide 11: Accretive Capital Allocation
ACCRETIVE CAPITAL ALLOCATION UDR has a track record of being a proficient steward of capital and can utilize various external growth value creation drivers. 40% Capital Allocation During the Apartment Cycle ($M) $2,000 FSSSUDR Prem/(Disc.)to NAV (hs) —=eNet Acquisitions (rhs) ern Issue equity at a p
Slide 12: 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 riskadjusted IRRs and the greatest eamings/NAV accretion. These include: ACQUISITIONS REDEVELOPMENT . ey —— | Villaggio|Dalas, Tx Cirru
Slide 13: Diversified and High-Quality Resident Base
DIVERSIFIED AND HIGH-QUALITY RESIDENT BASE) Household income, wage growth, and resident credit quality support current and future demand. $162K Average annual household income Seattle ‘Avg. Household Income ($000s): $181 vs. MSA Median Income: isix | | O ‘% High-Income MSA Jobs: ” 6 ‘San Francisco B
Slide 14: 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% 25% Median Resident Age: 32 1% 20% 18% 15% 10% 5% 0% Under 25 45+ Pre-COVID:Feb2020 = Current Resident Tumover Strong demand and our focus on resident sa
Slide 15: 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 16: ESG and Sustainability Leadership
ESG AND SUSTAINABILITY LEADERSHIP UDRis a recognized global ESG leader and is committed to further enhancing our ESG profile.) GRESB Score of 87 Public Disclosure Green Certifications SDG Alignment Earned Sector Leader Earned GRESB Public Developed, redeveloped, or Aligned with 10 United designation
Slide 17: Appendix
View 34 New York, NY *% APPENDIX
Slide 18: 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 19: 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) PROPENSITY TO RENT BY AGE COHORT oe m=
Slide 20: 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 ~5 million additional apartments will be needed by 2030 to satisfy housing demand, t
Slide 21: Notes
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Slide 22: Notes
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Slide 23: Notes
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Slide 24: 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 express
Slide 25: Definitions and Reconciliations June 2024
cree DEFINITIONS AND RECONCILIATIONS JUNE 2024
Slide 26: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS A2 ‘Acquired Communities: The Company defines Acquired Communities as these 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 27: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS AS Controllable Expenses: The Company refers to property operating and maintenance expenses as Controllable Expenses. Controllable Operating Margin: The Company defines Controllable Operating Margin as (i) rental income less Controllable Expenses (ii) divided by renta
Slide 28: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS AA Effective Renewal Lease Rate Growth: The Company defines Effective Renewal Lease Rate Growth as the increase in gross potential rent realized less concessions on a straight-line basis for the new lease term (current effective rent) versus prior effective rent for t
Slide 29: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS AS Joint Venture Reconciliation at UDR's weighted average ownership interest: In thousands Income/(loss) from unconsolidated entities, Management fee Interest expense Depreciation General and administrative Developer Capital Program (excludes loans) Other (income)/exp
Slide 30: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS AG NOI Enhancing Capital Expenditures (Cap Ex): The Company defines NOI Enhancing Capital Expenditures as expenditures that result in increased income generation or decreased expense growth over time. Management considers NO! Enhancing Capital Expenditures a useful me
Slide 31: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS AT 2024 Guidance: All guidance is based on current expectations of future economic conditions and the judgment of the Company's management team. The following reconciles from GAAP Net incomey/(loss) per share for the second quarter of 2024 and full-year 2024 to foreca
Slide 32: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS Quarter Ended Coverage Ratios March 31, 2024 Net income/(oss) $ 46,310 Adjustments: Interest expense, including debt extinguishment and other associated costs 48,062 Real estate depreciation and amortization 169,858 Other depreciation and amortization 4316 Tax provisi
Slide 33: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS Ag In thousands, except per share and unit amourts, 2024 2023 Net income/(oss) atvibutable to cammon stockholders S$ aes $za78t Reel estete depresetion and emortastion Noncontrofing interests Ree este deprecton and amortsstion on unconsoidated joint ventures Net (gain
Slide 34: 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,” “wil” “seeks,” “outlook,” “guidance,” “estimates,” and variations of such words and similar expressio