Udr, Inc. · NYSE:UDR
Udr — Investor Presentation (March 2024)
35 slides from Udr's investor presentation, Mar 1, 2024
Slide 1: Investor Presentation March 2024
Peridot Palms Tampa, FL hed INVESTOR r , PRESENTATION f vie MARCH 2024
Slide 2: Table of Contents
\ \ TABLE OF CONTENTS C3] Recent Updates [7 ) UDR at a Glance Qe UDR Value Proposition | ® Market and Resident Attributes == © Strong, Liquid, Flexible Balance Sheet @ ESG and Sustainability Leadership ® The Case for Apartment REITs Essex Luxe \ Orlando, FL 2
Slide 3: Recent Updates - UDR
RECENT UPDATES - UDR January and February effective blended lease rate growth improved sequentially while occupancy remained high, concession usage stabilized, and other income continues to positively contribute to revenue growth. | erating Trends ct 3 | Nov 2023 | Dec 2023 | 4Q 2023 | Jan 2024 | Fe
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) —Long erm Avg, R/ Ratio hs) 30% | 25% Riis 20% 15% Decl? Decds Dec19 Dec20 Dec2
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% 0.8% 120,000 0.6% 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. 4A% 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 33% of NOI one mUDR = Peer Average Price Point and tion Within Market = A-Quality B-Quality 56% = Coastal A =
Slide 9: UDR Value Proposition
UDR VALUE PROPOSITION Innovation ec Differentiated Gi? Operations MarketSelection ~ Self-service and improved Predictive analytics and Durable competitive resident experience qualitative analyses to advantages boost yields help identity investment/ - Expand margins and divestment markets History of
Slide 10: Innovation Accomplishments
INNOVATION ACCOMPLISHMENTS UDR’s history of innovation has delivered better SS NOI growth and controllable operating margin versus peers. Long-Term Same-Store Outperformance Controllable Operating Margin (“COM”) Expansion UDR vs. Peer Median SS NOI Growth (2013-2023) Controllable Operating Margin vs
Slide 11: 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 $600M of value creation, (b) better than peer average FFOA per share growth in 7 of the past 10 years, and (c) an approximate 300 ba
Slide 12: Accretive Capital Allocation
ACCRETIVE CAPITAL ALLOCATION UDR has a track record of being a proficient steward of capital and can utilize various external growth value creation drivers. ie Capital Allocation During the Apartment Cycle ($M) Soin ESEQUDR Prem,/Disc.)toNAV ths) —=Net Acauisitons (ns) sa Issue equity at a premium t
Slide 13: 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 14: 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 t 25% Increase of average incomes vs. pre-COVID®) Seattle ‘Avg. Household Income ($000s): $177 vs. MSA Median Income: 149% 4
Slide 15: 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: 34. 1% 20% 15% 10% 5% 0% Under 25 45+ Pre-COVID:Feb2020 = Current Resident Tumover Strong demand and our focus on resident satis
Slide 16: 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 17: 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 LEED Certifications SDG Alignment Earned Sector Leader Earned GRESB Public Developed, redeveloped, or Aligned with 10 United designation
Slide 18: Appendix
Meridian Tampa, FL GRESB APPENDIX
Slide 19: 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 20: 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) oe mDomestically Born = Foreign Born P
Slide 21: 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 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,” “estimates” and variations of such words and similar expressions are intended to ide
Slide 25: Definitions and Reconciliations
cree DEFINITIONS AND RECONCILIATIONS MARCH 2024
Slide 26: Definitions and Reconciliations A2
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 A3
DEFINITIONS AND RECONCILIATIONS AS Controllable Expenses: The Company refers to property operating and maintenance expenses as Controllable Expenses. Controtiable Operating Margin: The Company defines Controllable Operating Margin as (i) rental income less Controllable Expenses (il) divided by renta
Slide 28: Definitions and Reconciliations A4
DEFINITIONS AND RECONCILIATIONS AA Effective New Lease Rate Growth: The Company defines Effective New Lease Rate Growth as the increase in gross potential rent realized less concessions for the new lease term (current effective rent) versus prior resident effective rent for the prior lease term on n
Slide 29: Definitions and Reconciliations A5
DEFINITIONS AND RECONCILIATIONS AS Funds From Operations (“FFO’) attributable to common stockholders and unitholders: The Company defines FFO attributable to common stockholders and unitholders. as net income/(loss) attributable to common stockholders (computed in accordance with GAAP), excluding im
Slide 30: Definitions and Reconciliations A6
DEFINITIONS AND RECONCILIATIONS A6 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 esta
Slide 31: Definitions and Reconciliations A7
DEFINITIONS AND RECONCILIATIONS AT QID SameStore Communities: The Company 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 32: Definitions and Reconciliations A8
DEFINITIONS AND RECONCILIATIONS As 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 first quarter of 2024 and full-year 2024 to forecast
Slide 33: Definitions and Reconciliations A9
DEFINITIONS AND RECONCILIATIONS Ag Quarter Ended Coverage Ratios December 31, 2023 Net income/(loss) $ 35,961 Adjustments: Interest expense, including debt extinguishment and cther associated costs 47347 Real estate depreciation and amortization 170,643 Other depreciation and amortization 4,397 Tax
Slide 34: Definitions and Reconciliations A10
DEFINITIONS AND RECONCILIATIONS A10 ‘Three Months Ended. Twelve Months Ended Devember 31, December 31, Inthousands, exept pershare and unt amounts 2023 2022 2023 2072 Netincame/(am) atrbumble w common snekders $ saves $4325 $ a90505 § © s2si2 Rea! estate aepreraton ena amorzaton 270,643 70.419 essa2
Slide 35: 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,” “estimates” and variations of such words and similar expressions are intended to ide