Slide 1: Investor Presentation March 2016
earn PRESENTATION MARCH 2: UDR, Inc. holds a balanced portfolio of A and B properties, allowing us to serve a wide variety of customers during all economic cycles. Delray Tower Dominion Lake RIGS lee ( ne. (NYSE: UDR), has a demonstrated history of successfully man. , buying, selling, developing ate
Slide 2: Table of Contents
TABLE OF CONTENTS About UDR, Inc. , 4 Recent Highlights 4 \ Strategic Objectives ~ Overview 5 Ve} | | Strategic Objectives — In Detail Operations 6 Capital Allocation 9 Joint Ventures 16 Balance Sheet and Funding Sources v7 Components of AFFO Growth 19 2016 Guidance 21 Operating Trends Update 22 201
Slide 3: About UDR, Inc.
ABOUT UDR, INC. 3 UDR STATS () * Established in 1972 20 Markets 171 Communities 50,646 Homes Same-Store Revenue per Occupied Home: $1,794 Total Portfolio Revenue per Occupied Home: $1,956 Average Age of Communities: 16 years + Approximately 50% / 50% A / B Property Quality and 50% / 50% Urban / Subu
Slide 4: 2015 & Recent Highlights
2015 & RECENT HIGHLIGHTS ‘ 3 4 5) 6 V 8 9) 10 GENERATED STRONG FULL-YEAR 2015 SAME-STORE RESULTS FY 2015 SS Revenue and NOI Growth of 5.6% and 6.7%, respectively INCREASED THE DIVIDEND/SH BY 7%; GREW AFFO BY 11% IN 2015 + 2016 dividend/sh increased by an additional 6% to $1.18 * 2016 AFFO/sh expecte
Slide 5: 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
Slide 6: Operations
OPERATIONS Drive organic growth and improve resident / associate satisfaction through our best-in-class operating platform
Slide 7: 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 BETTER TOP-LINE RESULTS IN PRIMARY MARKETS. MEDIAN SAME-STORE REVENUE GROWTH % UDR UDR VS. MF PEER UDR VS. MF PEER MARKET Not) MED. L
Slide 8: Operations - Operating Initiatives
OPERATIONS — OPERATING INITIATIVES 8 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 MSRM. 56.6M in Additional NOI Reductio 2 INCREASE MAINTENANCE STAFF EFFICIENCY * Use efficiency gains to bring more
Slide 9: Capital Allocation
YY YY 6 YY Bi a m a a on a a oer ite ou F i t CAPITAL ALLOCATION Allocate capital to accretive growth opportunities that strengthen our market mix, portfolio quality and growth rate
Slide 10: Capital Allocation - Development
CAPITAL ALLOCATION - DEVELOPMENT UNDERWAY AND COMPLETED DEVELOPMENT * Size: 1,689 homes at 100% * Completion Sete a 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. cap rate spread of
Slide 11: Capital Allocation - Value Creation
CAPITAL ALLOCATION — VALUE CREATION a 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
Slide 12: Self-Funded Development
SELF-FUNDED DEVELOPMENT ® UDR CAN EMPLOY A SELF-FUNDED APPROACH TO FULLY FUND ITS DEVELOPMENT PIPELINE REDUCING DEPENDENCY ON CAPITAL MARKETS 1031 Exchange for Land and Certain Development Costs, ~$150M Free Cash Flow ~$100M Development and Land Acquisition Spend ~$500! Development that is 35% - 40%
Slide 13: Development Cycle
DEVELOPMENT CYCLE © MATCH-FUNDING OUR RISK AS WE RECYCLE OLDER NON-CORE ASSETS TO DEVELOP NEW, CORE ASSETS IN PRIMARY MARKETS = = Beach & Ocean Huntington Beach, CA 2014 Development Completion During this 5-year period, we have achieved estimated average IRRs o completed projects of ~19% and created
Slide 14: Development Progress
DEVELOPMENT PROGRESS a PROGRESS OF DEVELOPMENT PROJECTS + In aggregate, our pipeline’s weighted average spread between estimated stabilized yields and current cap rates is at the high-end of our 150 to 200 basis point targeted range Development Project () Performance Ocean, aie, Non ature Gas es ien
Slide 15: UDR's Developments
UDR’S DEVELOPMENTS Some of our recent developments are presented below STABILIZED, NON-MATURE DEVELOPMENTS Beach & Ocean | Huntington Beach, CA 100 Pier 4| Boston, M/ 399 Fremont San Francisco, CA Estimated Completion. 2015,
Slide 16: Joint Ventures
JOINT VENTURES ac aA e UDR HAS TWO OPERATING JV RELATIONSHIPS THAT COMPRISE $3.5 BILLION (12) OF APARTMENT COMMUNITIES. THESE RELATIONSHIPS: + Provide a stable source of favorably priced, long-term capital + Reduce effective cost of capital while enhancing returns via promotes and fee income SIZE ow
Slide 17: Balance Sheet
BALANCE SHEET Maintain a strong and flexible Balance Sheet while seeking to further improve our metrics over time
Slide 18: Balance Sheet and Funding Sources
BALANCE SHEET AND FUNDING SOURCES _® 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 f
Slide 19: Components of AFFO Growth
pa UZ ay 5 COMPONENTS OF AFFO GROWTH Generate high-quality cash flow growth, which will drive dividend and NAV per share growth
Slide 20: Components of AFFO Growth
COMPONENTS OF AFFO GROWTH 0 After strong AFFO/sh growth in 2015, solid operating results and p earn-in offset by reloading the development pipeline) are driving cash flow growth in 2016 Components of UDR's 2015A AFFO/sh Growth $1.60 $1.50 $1.45, $1.40 $1.35 8S/Non-$S NOL Development Earn-In West Coa
Slide 21: 2016 Guidance
2016 GUIDANCE (1) a EARNINGS PER SHARE GUIDANCE | 1Q2016E | ‘FULL-YEAR 2016E FFO per common share $0.42 to $0.44 $1.75 to $1.81 FFO as Adjusted per common share $0.42 to $0.44 $1.75 to $1.81 Adjusted Funds from Operations (“AFFO”) $0.40 to $0.42 $1.59 to $1.65 Annualized Dividend per common share $1
Slide 22: Operating Trends Update
OPERATING TRENDS UPDATE “) @ Effective YOY ‘Annualized SS Lc) Effective YOY New Blended Rate Turnover as of Tal Lease Rate Growth Growth March 9% Same-Store ss.QqD (Ss) Market 4Q15 4015 [ECH(5) |washington, lp.c. 18.1% 14.1% | 14% —-1.2% | 46% 3.8% | 3.1% 15% | 36.9% 35.3% INew York 121% 82% | 33% 6
Slide 23: 2016 Market Growth Expectations
2016 MARKET GROWTH EXPECTATIONS 23 % of SS NOI: 44% % of Total NOI: 39% UDR Same-Store Markets Northeast Revenue Growth!) % of SS NOE % of Total wor ane @ > 6.0% Revenue Growth NG © 5.5% to 6.0% Revenue Growth Southwest: @ <5.5% Revenue Growth 5% of SS NOt~7 xorTonl AOL 1% % of ais Total Market: NOI
Slide 24: Apartment Fundamentals
‘Acoma — Denver, CO UDR/MetLife Il Joint Venture APARTMENT FUNDAMENTALS
Slide 25: Apartment Fundamentals (Demand)
APARTMENT FUNDAMENTALS (DEMAND) % DEMOGRAPHIC TRENDS SIGNAL CONTINUED AND SUSTAINABLE DEMAND FOR RENTAL HOUSING Millennials are the largest population cohort, followed by Empty-Nester Baby Boomers, both of whom have demonstrated an increased propensity to rent U.S Population by Age Group (2044 Estat
Slide 26: Why Multifamily? (Demand)
WHY MULTIFAMILY? (DEMAND) ze In addition to population growth, jobs are a primary multifamily demand driver. Job growth is forecast to remain strong in 2016 and 2017 U.S. Employment Growth 2007 2008 ©2009 2010 «2011 (2012 2013 2014 2015 2016E 2017E 2018E The homeownership rate continues to decline.
Slide 27: Why Multifamily? (MF Supply)
WHY MULTIFAMILY? (MF SUPPLY) New multifamily supply is expected to be slightly elevated versus historical norms in 2015 and 2016 before declining in 2017 National Multifamily Completions (000s) 2016E-20186 ae sage the Avg.:341k [ 2.0% 350 compiione rom 19072008, 38 iY 090 ‘son mt homes w a ail weede
Slide 28: Definitions and Reconciliations
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Slide 29: Definitions and Reconciliations
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Slide 30: Definitions and Reconciliations
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Slide 31: Definitions and Reconciliations
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Slide 32: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS 2 ‘Three Months Ended Twolve Months Ended mber 31 December 31 In thousands, share amounts, 2015 2018 2015 2018 "Not incomes) atrbutabie to common stockholders S wiz -§ 6448s $3561 § 150610 108,900 91.406 s7ase8 368,154 Noncantling interests 14.963 8 16778 9.300 12207
Slide 33: Notes
NOTES 3
Slide 34: Notes
NOTES x
Slide 35: Forward Looking Statements
FORWARD LOOKING STATEMENTS = Forward Looking Statements Certain statements made in this presentation may constitute “forward-looking statements.” ds such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “estimates” and variations of such words and similar expre
Slide 36: Investor Relations Contact
Investor Relations Contact: Shelby Noble snoble@u