Udr, Inc. · NYSE:UDR
Udr — Investor Presentation (February 2025)
29 slides from Udr's investor presentation, Feb 27, 2025
Slide 1: Investor Presentation March 2025
101 N. Meridian Tampa, FL INVESTOR PRESENTATION March 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 °S\ SS Orlando, FL 2
Slide 3: Recent Updates - 2025 Guidance (as reported February 5, 2025)
RECENT UPDATES - 2025 GUIDANCE (AS REPORTED FEBRUARY 5, 2025) Key operating metrics remain on track relative to the outlook provided on our fourth quarter earnings call, including sequential improvements in both blended lease rate growth and occupancy in the first quarter of 2025. 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; 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. S&P 500 Multifamily § Apartment REIT Homes 21 Markets Dividend Yield 40-Year 40-Year 37% | ; | | |
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 57% = Coastal A = Sunbelt A Coastal B Sunbelt B 65% 54% .\ = Urban = Suburban West Coast: 3
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 (a) approximately $40M of incremental run-rate NOI since 2018, equating to $800M of value creation,” and (b) an approximate 200
Slide 9: Accretive Capital Allocation
ACCRETIVE CAPITAL ALLOCATION UDR has a track record of being a proficient steward of capital and can utilize various external growth value creation drivers. Capital Allocation During the Apartment Cycle ($M) $2,000 Net Acquisitions (rhs) [EEUDR Prem /(Disc.)to NAV (hs) $1,500 Issue equity at a premi
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 ResidentAge: 36 26% Median ——— == 1% 20% - 7 i I 0% Under 25 45+ Pre-COVID: Feb 2020 = Current Resident Turnover * Healthy demand and our focus on resident satisfaction has h
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 sam e period. U.S. POPULATION BY AGE COHORT (MILLIONS) oe 1m Domestically Born = Foreign Bor
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
a ey | ‘ b nasdaq Celebrates > gin Annual ESG Report Ly DEFINITIONS AND RECONCILIATIONS March 2025
Slide 20: Definitions and Reconciliations
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
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
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
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
DEFINITIONS AND RECONCILIATIONS 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 estate
Slide 25: Definitions and Reconciliations
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 - 2025 Guidance
DEFINITIONS AND RECONCILIATIONS AS 2025 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 first quarter of 2025 and full-year 2025 to forecast
Slide 27: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS ‘source company documents. AQ Quarter Ended Coverage Ratios December 31, 2024 Net income/(oss) $ (5523) Adjustments: Interest expense, including debt extinguishment and other associated costs, 49,625 Real estate depreciation and amortization 165,446 Other depreciation
Slide 28: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS AO ‘Three Months Ended ‘Twelve Months Ended December 31, December 34, Jn thousands, except per shore and unit amounts 2028 223 m4 ery Netinaame/(tss) eturbumable weammen steektaicers S$ @2ey $ cares $$ wa7so § ss0505 est tate oqpresaton ana amonzaten 30,400 sroess ren
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