Udr, Inc. · NYSE:UDR
Udr — Investor Presentation (September 2024)
34 slides from Udr's investor presentation, Sep 4, 2024
Slide 1: Investor Presentation September 2024
101 N. Meridian Tampa, FL INVESTOR PRESENTATION September 2024
Slide 2: Table of Contents
TABLE OF CONTENTS C3} Recent Updates @ UDR at a Glance Q UDR Value Proposition i ® Innovation and Competitive Advantages ® Accretive Capital Allocation and Value Creation é 13) Market and Resident Attributes C15} Strong, Liquid, Flexible Balance Sheet 2 (ic) ESG and Sustainability Leadership © The C
Slide 3: Recent Updates - UDR
RECENT UPDATES - UDR) Key operating metrics are following normal seasonal patterns. 3QTD blended lease rate growth (+2.1%) is ahead of 2H guidance (+0.9%), driven by renewal rate growth of 5% (1OObps higher than 1H) and resident turnover 300bps lower y/y. 3Q is forecast to be the lowest y/y SSREV gr
Slide 4: Recent Updates - 2024 Guidance (as reported July 30, 2024)
RECENT UPDATES - 2024 GUIDANCE (AS REPORTED JULY 30, 2024) SSREV Growth SSREV Growth, by Region @.93% 2ox ame @ 20% 19% _ oom fam BlondedLoase —innmaton nd Ozupany 2004 Centaiied own) ‘Tatocionh —‘Oberincome anata Dett_—_SSREV Growth aac — | A tl — Tota! East Coast/ MitAtontic West Coast unto [Roti
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 Py patio. —LongTerm Average 25% 24% 23% 22% 21% 20% Mari8 Mari9 Mar20 Mar21 Mar22 Mar23 Mar24
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 mE Units. —=% of Stock 180,000 1.0% 70,000 1.0% 0.8% 89,0
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. S&P 500. Multifamily REIT 3.8% Dividend Yield 60,000 Apartment Homes 52 Year History Full-Cycle Conti
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 rable and Repeatable Competitive Advantages Innovation Repeatable ec Differentiated Investment CJ? Operations MarketSelection - Self-service and improved - Predictive analytics and Durable competitive resident experience qualitative analyses to advantages boost yields help iden
Slide 10: 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 $600M of value creation, and (b) an approximate 200 basis point
Slide 11: Accretive Capital Allocation
ACCRETIVE CAPITAL ALLOCATION UDR has a track record of being a proficient steward of capital and can utilize various external growth value creation drivers. 40% Capital Allocation During the Apartment Cycle ($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. $165K Average annual household income Seattle ‘Avg. Household Income ($000s): $183 vs. MSA Median Income: sax | | 0 ‘% High-Income MSA Jobs: * 6 ‘San Francisco Ba
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 see 25% Median Resident Age: 32 1% 20% 15% 10% 5% 0% Under 25 45+ Pre-COVID:Feb2020 = Current Resident Tumover Healthy demand and our focus on resident satis
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 (approx. $11 billion), and strong leverage metrics support growth opportunities and reduce risk. Strong Lever
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.) = Sustainable z GRESB Score of 87 Top Workplace SDG Alignment Development Earned Sector Leader Selected by USGBC as a LEED Named the 2024 Top Aligned with 10 United designat
Slide 17: Appendix
_— — Leonard Pointe 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
NOTES 21
Slide 22: Notes
NOTES 22
Slide 23: Notes
NOTES 23
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 September 2024
cree DEFINITIONS AND RECONCILIATIONS SEPTEMBER 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 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 (incomeyexpense
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 income/(loss) per share for the third quarter of 2024 and full-year 2024 to forecast
Slide 32: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS ‘souree: Company socuments, Quarter Ended Coverage Ratios June 30, 2024 Net income/(loss) $ 31,013 Adjustments: Interest expense, including debt extinguishment and other associated costs A7g11 Real estate depreciation and amortization 170,488 Other depreciation and am
Slide 33: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS Ag ‘Three Months Ended ‘Six Months Ended June 30, June 30, Jn thousands, except per share and unit emourts 2008 2023 2024 2023. [Net incame/(loss) attributable w common swrekholiers S$ 27ers $ 346508 -$ « eBsBL «$376,108 Ras! extte dapranaton and amortzaton a70488 s68
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