Udr, Inc. · NYSE:UDR
Udr — Investor Presentation (November 2024)
30 slides from Udr's investor presentation, Nov 14, 2024
Slide 1: Investor Presentation November 2024
The MO Washington, D.C INVESTOR PRESENTATION November 2024
Slide 2: Table of Contents
TABLE OF CONTENTS (3) Recent Updates (6) UDR at a Glance [s} UDR Value Proposition are se (9) Innovation and Competitive Advantages a | ® Accretive Capital Allocation and Value Creation ® Market and Resident Attributes p @ Strong, Liquid, Flexible Balance Sheet y 4 (5) ESG and Sustainability Leaders
Slide 3: Recent Updates - 2024 Guidance (as reported October 30, 2024)
RECENT UPDATES - 2024 GUIDANCE (AS REPORTED OCTOBER 30, 2024) Key operating metrics remain on track relative to the outlook provided on our third quarter earnings call, including approximately flat blended lease rate growth and improving sequential occupancy in the fourth quarter. SSREV Growth SSREV
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 Py patio. —LongTerm Average 25% 24% 23% 22% 21% 20% Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 Sep-23 Sep-
Slide 5: 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 mE Units. —% of Stock 480,000 1.0% 70,000 1.0% 0.8% 69,00
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. 52 Year S&P 500 oo Full-Cycle @§ Continuous History Multifamily § Apartment ff) 21 Markets DWE inve
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% 53% = Urban = Suburban West Coast: 35%
Slide 8: UDR Value Proposition
UDR VALUE PROPOSITION Innovation ec _ Differentiated GJ’ Operations Market Selection - Self-service and improved - Predictive analytics and Durable competitive resident experience qualitative analyses to advantages boost yields help identify investment/ - Expand margins and divestment markets - Hist
Slide 9: Innovation = Repeatable, Consistent Value Creation
INNOVATION = REPEATABLE, CONSISTENT VALUE CREATION UDR innovation initiatives have consistently driven high-single-digit y/y growth in other income, resulting in (a) approximately $30M of incremental run-rate NOI since 2018, equating to $600M of value creation, and (b) an approximate 200 basis point
Slide 10: Accretive Capital Allocation
ACCRETIVE CAPITAL ALLOCATION UDR has a track record of being a proficient steward of capital and can utilize various external growth value creation drivers. ie Capital Allocation During the Apartment Cycle ($M) Soin EEEUDR Prem,/(Disc.)toNAV ths) —=Net Acauisttons (ns) sa Issue equity at a premium t
Slide 11: 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 12: 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. $167K Average annual household income Seattle ‘Avg. Household Income ($000s): $189 vs. MSA Median Income: 160% | | O ‘% High-ncome MSA Jobs: atio ‘San Francisco B
Slide 13: Resident Attributes and Trends
RESIDENT ATTRIBUTES AND TRENDS Balanced resident composition minimizes risk of exposure to specific age cohorts. 30% ‘Average ResidentAge: 36 26% Median ——— == 1% 20% 0% Under 25 45+ Pre-COVID: Feb 2020 = Current Resident Turnover + Healthy demand and our focus on resident satisfaction has helped dr
Slide 14: 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 (approx. $1 billion), and strong leverage metrics support growth opportunities and reduce risk. Strong Levera
Slide 15: 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 16: Appendix
The MO Washington, D.C. APPENDIX
Slide 17: 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: Increased propensity to rent Ongoing shortage of U.S. housing TOTAL SHAREHOLDER RETURN (INDEXED AT 100 IN JANUARY 2000) —— NAREMT Equity Apartments Index --— NAREIT
Slide 18: 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. US. POPULATION BY AGE COHORT (MILLIONS) PROPENSITY TO RENT BY AGE COHORT oe = D
Slide 19: 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 20: 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 21: Definitions and Reconciliations
a ey | ‘ b nasdaq Celebrates > gin Annual ESG Report Ly DEFINITIONS AND RECONCILIATIONS NOVEMBER 2024
Slide 22: 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 23: Definitions and Reconciliations A3
DEFINITIONS AND RECONCILIATIONS AS Cortroliable Expenses: The Company refers to property operating and maintenance expensesas Controllable Expenses. Cortrollable Operating Margin: The Company defines Controllable Operating Margin as (i) rental income less Controllable Expenses (ii) divided by rental
Slide 24: Definitions and Reconciliations A4
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 straightline basis for the new lease term (current effective rent) versus prior effective rent for th
Slide 25: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS Joint Venture Reconciliation at UDF’s weighted average ownership interest: In thousands 392024 __yrp 2024 Income (loss) from unconsalidated entities, $ (4880) $ 11,251 Management fee ‘875 2574 Interest expense 47448 13,682 Depreciation 12315 39,776 General end adminis
Slide 26: Definitions and Reconciliations A6
DEFINITIONS AND RECONCILIATIONS AG NOI Enhancing Capital Expenditures (Cap Ex): The Company defines NO! Enhancing Capital Expenditures as expenditures that result in increased income generation or decreased expense growth over time. Management considers NOI Enhancing Capital Expenditures a useful me
Slide 27: 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 income/(loss) per share for the fourth quarter of 2024 and full-year 2024 to forecas
Slide 28: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS Quarter Ended Coverage Ratios September 30, 2024 Net income/(loss) $ 24,077 Adjustments: Interest expense, including debt extinguishment and other associated costs 50,214 Real estate depreciation and amortization 170,276 Other depreciation and amortization 4,029 Tax p
Slide 29: Definitions and Reconciliations A9
DEFINITIONS AND RECONCILIATIONS Ag ‘Three Months Ended Nine Months Ended ‘September 30, ‘September 30, Inthousands, except per share and unit amounts 2028 023 2028 2023 Netincame/(lss) etributuble w camon swanoiers $2400 § steer $ wower § sor zat ea estate ceprercton ona amertaston 370276 sensei s10
Slide 30: 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 expressi