Business Wire | Jul 28, 2020 04:16PM EDT

UDR Announces Second Quarter 2020 Results

Jul. 28, 2020

DENVER--(BUSINESS WIRE)--Jul. 28, 2020--UDR, Inc. (the "Company") Second Quarter 2020 Highlights:

* Net income per share was $0.19, Funds from Operations ("FFO") per share was $0.51, FFO as Adjusted ("FFOA") per share was $0.51, and Adjusted FFO ("AFFO") per share was $0.47. * Net income attributable to common stockholders was $56.7 million as compared to $34.6 million in the prior year period. The increase was primarily due to net operating income ("NOI") growth and gains from the sale of communities during the quarter, partially offset by increased depreciation from communities acquired during 2019 and 2020 as well as the Company recording bad debt reserves against its residential and retail revenues of $5.5 million and $3.5 million, respectively. * Year-over-year ("YOY") Combined Same-Store revenue, expense and NOI growth / (decline) was (2.1) percent, 2.5 percent and (4.0) percent, respectively. The Company's second quarter Combined Same-Store bad debt reserve totaled $4.5 million. Absent this reserve, Combined Same-Store revenue and NOI growth / (decline) would have been (0.4) percent and (1.6) percent, respectively. * The Company continues to implement its Next Generation Operating Platform, which drove a Combined Same-Store controllable expense decline of (2.0) percent YOY and helped to maintain controllable operating margin of 84.3 percent, equal to the prior year period despite a decline in Combined Same-Store revenue due to the impact of COVID-19. * The Company's Combined Same-Store operating margin (property NOI divided by property rental income) was 70.2 percent as compared to 71.5 percent in the prior year period. The decrease is primarily due to a decline in Combined Same-Store revenue and increases in real estate taxes and reserves for bad debt. * As previously announced, the Company sold Waterscape, a 196-home community located in Kirkland, WA, for gross proceeds of $92.9 million and Borgata Apartment Homes, a 71-home community located in Bellevue, WA, for gross proceeds of $49.7 million. * The Company executed a rate lock agreement to refinance its only remaining 2020 maturity, a $79.5 million, 4.35 percent fixed rate mortgage loan, with a $160.9 million, 2.62 percent 10.5-year secured loan. The Company expects to close on the refinancing transaction during the third quarter of 2020.

Subsequent to Quarter-End Highlights:

* The Company is providing a summary of recent operations, as of July 24, which can be found on page 4 of this Press Release. Highlights include: (1) total revenue billed remained relatively consistent throughout the second quarter, (2) cash collections were 97.5 percent on a base of $322.6 million in billed revenue, (3) weighted average physical occupancy was 96.3 percent, and (4) traffic, qualified leads, and applications showed sequential monthly improvement. * As previously announced, the Company issued $400.0 million of unsecured debt at an effective interest rate of 2.11 percent with 12.0 years to maturity. A portion of the proceeds were / will be used to prepay $245.8 million of 4.64 percent secured debt originally due in 2023 and to purchase $116.9 million of 3.75 percent unsecured debt originally due in 2024 pursuant to the previously-announced tender offer. * The Company, through its Developer Capital Program, invested $40.0 million into a 534-home community in Queens, NY. The investment yields 13.0 percent on the Company's capital outstanding with 5.0 years until expected redemption and includes profit participation upon a liquidity event. * The Company amended its $75.0 million working capital credit facility to extend its maturity from January 2021 to January 2022. The interest rate on the facility remains LIBOR plus a spread of 82.5 basis points.

"UDR continues to operate at a high level due to the capabilities of our Next Generation Operating Platform, and is in a strong liquidity position to execute on the diverse set of opportunities our experienced teams continue to identify. However, ongoing regulatory impediments as well as the uncertainties surrounding the cadence of state re-openings limit our ability to provide guidance for the remainder of 2020," said Tom Toomey, UDR's Chairman and CEO. "I commend our associates for the hard work, dedication, and compassion they have shown in collaboration with our residents through this difficult time."

Q2 Q2 YTD YTD 2020 2019 2020 2019

Net income per common share, diluted $0.19 $0.12 $0.21 $0.21

Conversion from GAAP share count (0.015) (0.010) (0.016) (0.018)

Net gain on the sale of depreciable real estate (0.191) (0.017) (0.191) (0.017)owned, incl. JVs

Depreciation and amortization, including JVs 0.511 0.432 1.024 0.852

Noncontrolling interests and preferred 0.017 0.012 0.021 0.022dividends

FFO per common share and unit, diluted $0.51 $0.54 $1.04 $1.05

Promoted interest on settlement of note - - - (0.021)receivable, net of tax

Legal and other costs 0.005 - 0.007 0.012

Net gain on the sale of non-depreciable real - (0.017) - (0.017)estate owned

Unrealized (gain)/loss on unconsolidated (0.010) - (0.010) (0.001)technology investments, net of tax

Severance costs and other restructuring expense - - 0.005 -

Casualty-related charges/(recoveries), 0.001 0.001 0.005 0.002including JVs, net

FFOA per common share and unit, diluted $0.51 $0.52 $1.05 $1.02

Recurring capital expenditures (0.039) (0.041) (0.068) (0.065)

AFFO per common share and unit, diluted $0.47 $0.48 $0.98 $0.96

A reconciliation of FFO, FFOA and AFFO to GAAP Net income attributable to common stockholders can be found on Attachment 2 of the Company's second quarter Supplemental Financial Information.

Operations

In the second quarter, total revenue increased by $25.9 million year-over-year, or 9.2 percent, to $307.3 million. This increase was primarily attributable to growth in revenue from acquisition communities.

Second quarter Combined Same-Store NOI decreased 4.0 percent year-over-year, driven by a Combined Same-Store revenue decline of 2.1 percent and Combined Same-Store expense growth of 2.5 percent. Absent the Company's bad debt reserve, Combined Same-Store revenue would have declined 0.4 percent. Weighted average Combined Same-Store physical occupancy decreased by 50 basis points to 96.3 percent versus the prior year period. The second quarter annualized rate of turnover decreased by 620 basis points versus the prior year period to 48.9 percent.

Summary of Combined Same-Store Results Second Quarter 2020 versus Second Quarter 2019

Revenue Expense NOI % of Combined Number Physical ofRegion Growth / Growth / Growth / Same-Store Occupancy^(2) Homes^ (Decline) (Decline) (Decline) Portfolio^(1) (3)

West (3.0 )% 1.5 % (4.4 )% 39.7 % 95.6 % 13,086

Mid-Atlantic (0.9 )% 2.5 % (2.3 )% 23.6 % 97.0 % 10,762

Northeast (6.6 )% 4.7 % (11.4 )% 13.7 % 94.2 % 4,080

Southeast 1.5 % 9.6 % (2.0 )% 11.2 % 97.3 % 7,428

Southwest 0.9 % (2.9 )% 3.6 % 7.1 % 96.9 % 5,136

Other Markets (1.0 )% (1.5 )% (0.8 )% 4.7 % 96.4 % 2,147

Total (2.1 )% 2.5 % (4.0 )% 100.0 % 96.3 % 42,639

^ Based on Q2 2020 Combined Same-Store NOI.(1)

^ Weighted average Combined Same-Store physical occupancy for the quarter.(2)

During the second quarter, 42,639 apartment homes were classified as Combined Same-Store. The Company defines QTD Combined Same-Store Communities as those communities stabilized for five full consecutive^ quarters, including the 11 Joint Venture communities acquired in 2019(3) totaling 3,619 homes as if they were 100 percent owned by UDR during all periods presented. Combined Same-Store communities were owned and had stabilized physical occupancy and operating expenses as of the beginning of the quarter in the prior year, were not in process of any substantial redevelopment activities, and were not held for disposition.

In the second quarter, sequential Combined Same-Store NOI decreased 5.1 percent, driven by a Combined Same-Store revenue decline of 3.7 percent and a Combined Same-Store expense decline of 0.4 percent. Weighted average Combined Same-Store physical occupancy decreased by 70 basis points sequentially to 96.3 percent.

In the table below, the Company has provided components of revenue contribution that drove the year-over-year and sequential decreases in Combined Same-Store revenue. The decreases are a result of the following:

Year-Over-Year Sequential

Q2 2019 Contribution to Q1 2020 Contribution toRevenue Components ($ millions) Growth / ($ millions) Growth / ^ (1) (Decline)^(1) ^ (1) (Decline)^(1)

Combined Same-Store $271.1 $275.7 Revenue

Gross Rents $4.6 1.7 % $0.6 0.2 %

Concessions $(1.6 ) (0.6 )% $(1.9 ) (0.7 )%

Economic Occupancy $(2.8 ) (1.0 )% $(3.3 ) (1.2 )%Loss

Bad Debt Reserve $(4.5 ) (1.7 )% $(4.5 ) (1.6 )%

Fee and Other $(1.3 ) (0.5 )% $(1.2 ) (0.4 )%Income

Q2 2020 $265.4 (2.1 )% $265.4 (3.7 )%

^ Totals may not sum to $265.4 million, (2.1)% and (3.7)%, respectively, due(1) to rounding.

Year-to-date, for the six months ended June 30, 2020, total revenue increased by $76.8 million year-over-year, or 13.9 percent, to $628.7 million. This increase was primarily attributable to growth in revenue from acquisition communities.

Year-to-date, for the six months ended June 30, 2020, Combined Same-Store NOI decreased (0.4) percent year-over-year, driven by Combined Same-Store revenue growth of 0.3 percent and Combined Same-Store expense growth of 2.1 percent. Weighted average Combined Same-Store physical occupancy decreased by 20 basis points to 96.6 percent versus the prior year period. The year-to-date annualized rate of turnover decreased by 310 basis points versus the prior year period to 43.7 percent.

Summary of Combined Same-Store Results Year-To-Date 2020 versus Year-To-Date 2019

Revenue Expense NOI % of Combined Number Physical ofRegion Growth / Growth / Growth / Same-Store Occupancy^(2) Homes^ (Decline) (Decline) (Decline) Portfolio^(1) (3)

West 0.1 % 2.5 % (0.6 )% 39.4 % 96.2 % 12,545

Mid-Atlantic 0.8 % 1.5 % 0.5 % 24.0 % 97.1 % 10,762

Northeast (2.1 )% 5.8 % (5.7 )% 13.6 % 95.5 % 3,892

Southeast 1.8 % 5.4 % 0.4 % 10.9 % 97.0 % 7,047

Southwest 2.4 % (4.0 )% 7.0 % 7.3 % 97.0 % 5,136

Other Markets 0.6 % (0.9 )% 1.3 % 4.8 % 96.3 % 2,147

Total 0.3 % 2.1 % (0.4 )% 100.0 % 96.6 % 41,529

^ Based on YTD 2020 Combined Same-Store NOI.(1)

^ Weighted^ average Combined Same-Store physical occupancy for YTD 2020.(2)

For the six months ended June 30, 2020, 41,529 apartment homes were classified as Combined Same-Store. The Company defines YTD Combined Same-Store Communities as those communities stabilized for two full^ consecutive calendar years, including the 11 Joint Venture communities(3) acquired in 2019 totaling 3,619 homes as if they were 100 percent owned by UDR during all periods presented. Combined Same-Store communities were owned and had stabilized physical occupancy and operating expenses as of the beginning of the prior year, were not in process of any substantial redevelopment activities, and were not held for disposition.

Recent Operating Trends

Due to economic challenges and related government actions and regulations as a result of COVID-19, the Company is providing a selection of operational trends through Q2 2020. Additionally, July cash revenue received as a percentage of billed revenue is consistent with April, May, and June at corresponding times of prior months.

Summary of Second Quarter Operational Trends(1)

April May June Q2Residential Operating Metric Q2 2019 2020 2020 2020 2020

Total revenue billed ($ millions) $277.8 $108.5 $106.9 $107.2 $322.6

Revenue recognized / reserved^(2) N/A N/A N/A N/A 98.3% / 1.7%

Cash revenue collected (as % of 99.6% 98.6% 97.6% 96.2% 97.5%billed)

Leasing Traffic^(3) 1,009 782 1,059 1,191 1,011

Visits or Qualified Leads^(3) 28,821 3,949 7,040 11,395 22,384

Applications^(3) 7,759 2,148 3,027 3,818 8,993

Lease Closing Ratio^(3) 26.9% 54.4% 43.0% 33.5% 40.2%

Combined Same-Store Metrics

Weighted Average Physical Occupancy 96.9% 96.6% 96.1% 96.1% 96.3%

Effective Blended Lease Rate Growth 4.4% 2.0% 0.7% 0.0% 0.8%^(4)

^ Metrics shown here are for the Company's total portfolio, unless otherwise(1) indicated, and are as of July 24, 2020.

As of June 30, 2020, the Company had collected 96.1% of Q2 2020 billed residential revenue. Of the 3.9% not collected, and based on probability^ of collection, the Company reserved (reflected as a reduction to revenue)(2) approximately 1.7%, or $5.5 million, for bad debt, comprising $4.5 million from Combined Same-Store communities, $0.6 million from non-Combined Same-Store communities, and $0.4 million from the Company's share from unconsolidated joint ventures.

The Company defines (a) Leasing Traffic as average daily leads; (b) Visits or Qualified Leads as the summation of tours taken by current and^ prospective residents, whether in-person (where allowed) or by virtual(3) means, for the period indicated; (c) Applications as the total (or gross) number of applications received for the period indicated; and (d) Lease Closing Ratio as leases signed as a percentage of Visits.

The Company defines Effective Blended Lease Rate Growth as the combined proportional growth as a result of Effective New Lease Rate Growth (the increase in gross potential rent realized less concessions for the new^ lease term, or current effective rent, versus prior resident effective(4) rent for the prior lease term on new leases commenced during the current quarter) and Effective Renewal Lease Rate Growth (the increase in gross potential rent realized less concessions for the new lease term, or current effective rent, versus prior effective rent for the prior lease term on renewed leases commenced during the current quarter).

Retail tenant income accounts for less than 2 percent of the Company's consolidated NOI. During the second quarter, the Company collected 70.8 percent of billed retail revenue and reserved $3.5 million, including $0.1 million for UDR's share from unconsolidated joint ventures, of its retail revenue based on probability of collection. Of the total retail reserve amount, $0.6 million is attributable to accounts receivable with the remainder attributable to straight-line rent receivables.

Wholly Owned Transactional Activity

As previously announced, during the quarter the Company:

* Sold Waterscape, a 196-home community located in Kirkland, WA, for gross proceeds of $92.9 million, or $474,000 per home. At the time of sale, the 6-year-old community had a weighted average monthly revenue per occupied home of $2,476 and physical occupancy of 97 percent. * Sold Borgata Apartment Homes, a 71-home community located in Bellevue, WA, for $49.7 million, or $700,000 per home. At the time of sale, the 19-year-old community had a weighted average monthly revenue per occupied home of $3,301 and physical occupancy of 97 percent.

Development Activity

At the end of the second quarter, the Company's development pipeline totaled $278.5 million, of which 47 percent of this cost had been incurred. The Company's active pipeline includes 3 development communities, 1 each in Addison, TX, Denver, CO, and Dublin, CA, for a combined total of 878 homes. Leasing commenced at Vitruvian West Phase 2 (in Addison, TX) during the quarter.

Developer Capital Program ("DCP") Activity

At the end of the second quarter, the Company's DCP investments, including accrued return, totaled $419.6 million with a weighted average return rate of 9.8 percent and weighted average expected remaining term of 2.5 years.

Subsequent to quarter-end, the Company:

* Invested $40.0 million into a 534-home multifamily development located in Queens, NY. The investment yields 13.0 percent on the Company's capital outstanding with 5.0 years until expected redemption and includes profit participation upon a liquidity event. The community is fully capitalized, inclusive of $61.7 million of developer equity (or approximately 18 percent of the $341.7 million total project cost), and construction commenced during the fourth quarter of 2019.

Capital Markets and Balance Sheet Activity

During the quarter the Company:

* Executed a rate lock agreement to refinance its only remaining 2020 maturity, a $79.5 million, 4.35 percent fixed rate loan due in 2020, with a $160.9 million, 2.62 percent fixed rate secured loan due in 2031. The Company expects to close on the refinancing transaction during the third quarter of 2020. The incremental proceeds are anticipated to be used to reduce the Company's borrowings under its unsecured commercial paper program.

Subsequent to quarter-end, the Company:

* As previously announced, issued $400.0 million of unsecured debt at an effective interest rate of 2.11 percent with 12.0 years to maturity. A portion of the proceeds were / will be used to prepay $245.8 million of 4.64 percent secured debt due in 2023 and to purchase $116.9 million of 3.75 percent unsecured debt due in 2024 pursuant to the previously-announced tender offer. The combined prepayment and make-whole amounts, netted against fair market value adjustments, totaled approximately $24.0 million. * Amended its $75.0 million working capital credit facility. The amendment extends the maturity date from January 2021 to January 2022. The interest rate on the facility remains equal to LIBOR plus a spread of 82.5 basis points.

At June 30, 2020, the Company had $973.7 million of liquidity through a combination of cash and undrawn capacity on its credit facilities, plus an approximate $105.0 million of incremental capital sources from the potential settlement of previously-announced forward equity sales agreements. Please see Attachment 15 of the Company's second quarter Supplemental Financial Information for additional details on projected capital sources and uses.

The Company's total indebtedness as of June 30, 2020 was $4.8 billion and, after completion of the aforementioned secured debt refinancing, the Company will have no remaining consolidated maturities through 2022, excluding principal amortization, amounts on the Company's commercial paper program and amounts on the Company's working capital credit facility. The Company ended the quarter with fixed-rate debt representing 94.4 percent of its total debt, a total blended interest rate of 3.24 percent and a weighted average years to maturity of 7.0 years. The Company's consolidated leverage was 34.2 percent versus 32.1 percent a year ago, its consolidated net-debt-to-EBITDAre was 6.2x versus 5.4x a year ago and its consolidated fixed charge coverage ratio was 4.6x versus 4.9x a year ago.

Dividend

As previously announced, the Company's Board of Directors declared a regular quarterly dividend on its common stock for the second quarter of 2020 in the amount of $0.36 per share. The dividend will be paid in cash on July 31, 2020 to UDR common stock shareholders of record as of July 10, 2020. The second quarter 2020 dividend will represent the 191st consecutive quarterly dividend paid by the Company on its common stock.

Supplemental Information

The Company offers Supplemental Financial Information that provides details on the financial position and operating results of the Company which is available on the Company's website at ir.udr.com.

Conference Call and Webcast Information

UDR will host a webcast and conference call at 1:00 p.m. Eastern Time on July 29, 2020 to discuss second quarter results as well as high-level views for 2020.

The webcast will be available on UDR's website at ir.udr.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.

To participate in the teleconference dial 877-705-6003 for domestic and 201-493-6725 for international. A passcode is not necessary.

This quarter, given the combination of a high volume of conference calls occurring during this time of year generally and the impact that the COVID-19 pandemic has had on staffing and capacity at our conference call provider, we anticipate potential delays if you dial in to be connected to the live call. As a result, we encourage stockholders and interested parties to join us for the Company's earnings results discussion via the webcast link. If you choose to dial in to the live call, please allow extra time to be connected to the call.

A replay of the conference call will be available through August 28, 2020, by dialing 844-512-2921 for domestic and 412-317-6671 for international and entering the confirmation number, 13706590, when prompted for the passcode.

A replay of the call will also be available for 30 days on UDR's website at ir.udr.com.

Full Text of the Earnings Report and Supplemental Data

The full text of the earnings report and Supplemental Financial Information will be available on the Company's website at ir.udr.com.

Attachment 16(A)

UDR, Inc.

Definitions and Reconciliations

June 30, 2020

(Unaudited)

Acquired Communities: The Company defines Acquired Communities as thosecommunities acquired by the Company, other than development and redevelopmentactivity, that did not achieve stabilization as of the most recent quarter. Acquired JV Same-Store Portfolio Communities: Represents the Acquired JVSame-Store Portfolio Communities as if these communities were 100% owned by UDRsince January 1, 2019. These communities were Stabilized for five fullconsecutive quarters and had stabilized operating expenses as of the beginningof the quarter in the prior year, were not in process of any substantialredevelopment activities, and were not held for disposition. Because thesecommunities became wholly owned by UDR in 2019 (the 11 communities and 3,619homes were previously owned by UDR unconsolidated JVs), they are not includedin the UDR Same-Store Communities. See UDR Same-Store Communities for moreinformation regarding inclusion. These communities have been identified incertain tables to provide Combined Same-Store results as if these communitieswere 100% owned by UDR in prior periods. These 11 communities will be eligibleto join the UDR Same-Store Communities on January 1, 2021. Adjusted Funds from Operations ("AFFO") attributable to common stockholders andunitholders: The Company defines AFFO as FFO as Adjusted attributable to commonstockholders and unitholders less recurring capital expenditures onconsolidated communities that are necessary to help preserve the value of andmaintain functionality at our communities. Management considers AFFO a useful supplemental performance metric forinvestors as it is more indicative of the Company's operational performancethan FFO or FFO as Adjusted. AFFO is not intended to represent cash flow orliquidity for the period, and is only intended to provide an additional measureof our operating performance. The Company believes that net income/(loss)attributable to common stockholders is the most directly comparable GAAPfinancial measure to AFFO. Management believes that AFFO is a widely recognizedmeasure of the operations of REITs, and presenting AFFO will enable investorsto assess our performance in comparison to other REITs. However, other REITsmay use different methodologies for calculating AFFO and, accordingly, our AFFOmay not always be comparable to AFFO calculated by other REITs. AFFO should notbe considered as an alternative to net income/(loss) (determined in accordancewith GAAP) as an indication of financial performance, or as an alternative tocash flows from operating activities (determined in accordance with GAAP) as ameasure of our liquidity, nor is it indicative of funds available to fund ourcash needs, including our ability to make distributions. A reconciliation fromnet income/(loss) attributable to common stockholders to AFFO is provided onAttachment 2. Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items:The Company defines Consolidated Fixed Charge Coverage Ratio - adjusted fornon-recurring items as Consolidated Interest Coverage Ratio - adjusted fornon-recurring items divided by total consolidated interest, excluding theimpact of costs associated with debt extinguishment, plus preferred dividends. Management considers Consolidated Fixed Charge Coverage Ratio - adjusted fornon-recurring items a useful metric for investors as it provides ratingsagencies, investors and lending partners with a widely-used measure of theCompany's ability to service its consolidated debt obligations as well ascompare leverage against that of its peer REITs. A reconciliation of thecomponents that comprise Consolidated Fixed Charge Coverage Ratio - adjustedfor non-recurring items is provided on Attachment 4(C) of the Company'squarterly supplemental disclosure. Consolidated Interest Coverage Ratio - adjusted for non-recurring items: TheCompany defines Consolidated Interest Coverage Ratio - adjusted fornon-recurring items as Consolidated EBITDAre - adjusted for non-recurring itemsdivided by total consolidated interest, excluding the impact of costsassociated with debt extinguishment. Management considers Consolidated Interest Coverage Ratio - adjusted fornon-recurring items a useful metric for investors as it provides ratingsagencies, investors and lending partners with a widely-used measure of theCompany's ability to service its consolidated debt obligations as well ascompare leverage against that of its peer REITs. A reconciliation of thecomponents that comprise Consolidated Interest Coverage Ratio - adjusted fornon-recurring items is provided on Attachment 4(C) of the Company's quarterlysupplemental disclosure. Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items: TheCompany defines Consolidated Net Debt-to-EBITDAre - adjusted for non-recurringitems as total consolidated debt net of cash and cash equivalents divided byannualized Consolidated EBITDAre - adjusted for non-recurring items.Consolidated EBITDAre - adjusted for non-recurring items is defined as EBITDAreexcluding the impact of income/(loss) from unconsolidated entities, adjustmentsto reflect the Company's share of EBITDAre of unconsolidated joint ventures andother non-recurring items including, but not limited to casualty-relatedcharges/(recoveries), net of wholly owned communities. Management considers Consolidated Net Debt-to-EBITDAre - adjusted fornon-recurring items a useful metric for investors as it provides ratingsagencies, investors and lending partners with a widely-used measure of theCompany's ability to service its consolidated debt obligations as well ascompare leverage against that of its peer REITs. A reconciliation between netincome/(loss) and Consolidated EBITDAre - adjusted for non-recurring items isprovided on Attachment 4(C) of the Company's quarterly supplemental disclosure. Controllable Expenses: The Company refers to property operating and maintenanceexpenses as Controllable Expenses. Controllable Operating Margin: The Company defines Controllable OperatingMargin as (i) rental income less Controllable Expenses (ii) divided by rentalincome. Management considers Controllable Operating Margin a useful metric asit provides investors with an indicator of the Company's ability to limit thegrowth of expenses that are within the control of the Company. Development Communities: The Company defines Development Communities as thosecommunities recently developed or under development by the Company, that arecurrently majority owned by the Company and have not achieved stabilization asof the most recent quarter. Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate(EBITDAre): The Company defines EBITDAre as net income/(loss) (computed inaccordance GAAP), plus interest expense, including costs associated with debtextinguishment, plus real estate depreciation and amortization, plus otherdepreciation and amortization, plus (minus) income tax provision/(benefit),net, (minus) plus net gain/(loss) on the sale of depreciable real estate owned,plus impairment write-downs of depreciable real estate, plus the adjustments toreflect the Company's share of EBITDAre of unconsolidated joint ventures. TheCompany computes EBITDAre in accordance with standards established by theNational Association of Real Estate Investment Trusts, or Nareit, which may notbe comparable to EBITDAre reported by other REITs that do not compute EBITDArein accordance with the Nareit definition, or that interpret the Nareitdefinition differently than the Company does. The White Paper on EBITDAre wasapproved by the Board of Governors of Nareit in September 2017. Management considers EBITDAre a useful metric for investors as it provides anadditional indicator of the Company's ability to incur and service debt, andwill enable investors to assess our performance against that of its peer REITs.EBITDAre should be considered along with, but not as an alternative to, netincome and cash flow as a measure of the Company's activities in accordancewith GAAP. EBITDAre does not represent cash generated from operating activitiesin accordance with GAAP and is not necessarily indicative of funds available tofund our cash needs. A reconciliation between net income/(loss) and EBITDAre isprovided on Attachment 4(C) of the Company's quarterly supplemental disclosure. Effective New Lease Rate Growth: The Company defines Effective New Lease RateGrowth as the increase in gross potential rent realized less concessions forthe new lease term (current effective rent) versus prior resident effectiverent for the prior lease term on new leases commenced during the currentquarter. Management considers Effective New Lease Rate Growth a useful metric forinvestors as it assesses market-level new demand trends. Effective Renewal Lease Rate Growth: The Company defines Effective RenewalLease Rate Growth as the increase in gross potential rent realized lessconcessions for the new lease term (current effective rent) versus prioreffective rent for the prior lease term on renewed leases commenced during thecurrent quarter. Management considers Effective Renewal Lease Rate Growth a useful metric forinvestors as it assesses market-level, in-place demand trends. Estimated Quarter of Completion: The Company defines Estimated Quarter ofCompletion of a development or redevelopment project as the date on whichconstruction is expected to be completed, but it does not represent the date ofstabilization.

Attachment 16(B)

UDR, Inc.

Definitions and Reconciliations

June 30, 2020

(Unaudited)

Funds from Operations as Adjusted ("FFO as Adjusted") attributable to commonstockholders and unitholders: The Company defines FFO as Adjusted attributableto common stockholders and unitholders as FFO excluding the impact of othernon-comparable items including, but not limited to, acquisition-related costs,prepayment costs/benefits associated with early debt retirement, impairmentwrite-downs or gains and losses on sales of real estate or other assetsincidental to the main business of the Company and income taxes directlyassociated with those gains and losses, casualty-related expenses andrecoveries, severance costs and legal and other costs. Management believes that FFO as Adjusted is useful supplemental informationregarding our operating performance as it provides a consistent comparison ofour operating performance across time periods and allows investors to moreeasily compare our operating results with other REITs. FFO as Adjusted is notintended to represent cash flow or liquidity for the period, and is onlyintended to provide an additional measure of our operating performance. TheCompany believes that net income/(loss) attributable to common stockholders isthe most directly comparable GAAP financial measure to FFO as Adjusted.However, other REITs may use different methodologies for calculating FFO asAdjusted or similar FFO measures and, accordingly, our FFO as Adjusted may notalways be comparable to FFO as Adjusted or similar FFO measures calculated byother REITs. FFO as Adjusted should not be considered as an alternative to netincome (determined in accordance with GAAP) as an indication of financialperformance, or as an alternative to cash flows from operating activities(determined in accordance with GAAP) as a measure of our liquidity. Areconciliation from net income attributable to common stockholders to FFO asAdjusted is provided on Attachment 2. Funds from Operations ("FFO") attributable to common stockholders andunitholders: The Company defines FFO attributable to common stockholders andunitholders as net income/(loss) attributable to common stockholders (computedin accordance with GAAP), excluding impairment write-downs of depreciable realestate related to the main business of the Company or of investments innon-consolidated investees that are directly attributable to decreases in thefair value of depreciable real estate held by the investee, gains and lossesfrom sales of depreciable real estate related to the main business of theCompany and income taxes directly associated with those gains and losses, plusreal estate depreciation and amortization, and after adjustments fornoncontrolling interests, and the Company's share of unconsolidatedpartnerships and joint ventures. This definition conforms with the NationalAssociation of Real Estate Investment Trust's definition issued in April 2002and restated in November 2018. In the computation of diluted FFO, if OP Units,DownREIT Units, unvested restricted stock, unvested LTIP Units, stock options,and the shares of Series E Cumulative Convertible Preferred Stock are dilutive,they are included in the diluted share count. Management considers FFO a useful metric for investors as the Company uses FFOin evaluating property acquisitions and its operating performance and believesthat FFO should be considered along with, but not as an alternative to, netincome and cash flow as a measure of the Company's activities in accordancewith GAAP. FFO does not represent cash generated from operating activities inaccordance with GAAP and is not necessarily indicative of funds available tofund our cash needs. A reconciliation from net income/(loss) attributable tocommon stockholders to FFO is provided on Attachment 2. Held For Disposition Communities: The Company defines Held for DispositionCommunities as those communities that were held for sale as of the end of themost recent quarter.

Joint Venture Reconciliation at UDR's weighted average ownership interest:In thousands 2Q 2020 YTD 2020

Income/(loss) from unconsolidated entities $ 8,021 $ 11,388

Management fee 584 1,184

Interest expense 4,550 9,617

Depreciation 8,745 17,561

General and administrative 63 129

West Coast Development JV Preferred Return (66 ) (143 )

Developer Capital Program (excludes Alameda Point Block (6,341 ) (12,337 )11 and Brio)Other (income)/expense (15 ) 145

Unrealized (gain)/loss on unconsolidated technology (4,593 ) (4,549 )investmentsTotal Joint Venture NOI at UDR's Ownership Interest $ 10,948 $ 22,995

Net Operating Income ("NOI"): The Company defines NOI as rental income lessdirect property rental expenses. Rental income represents gross market rentand other revenues less adjustments for concessions, vacancy loss and baddebt. Rental expenses include real estate taxes, insurance, personnel,utilities, repairs and maintenance, administrative and marketing. Excludedfrom NOI is property management expense which is calculated as 2.875% ofproperty revenue to cover the regional supervision and accounting costsrelated to consolidated property operations, and land rent. Management considers NOI a useful metric for investors as it is a moremeaningful representation of a community's continuing operating performancethan net income as it is prior to corporate-level expense allocations,general and administrative costs, capital structure and depreciation andamortization and is a widely used input, along with capitalization rates, inthe determination of real estate valuations. A reconciliation from netincome/(loss) attributable to UDR, Inc. to NOI is provided below.

In thousands 2Q 2020 1Q 2020 4Q 2019 3Q 2019 2Q 2019

Net income/(loss) $ 57,771 $ 5,221 $ 97,959 $ 27,204 $ 35,619 attributable toUDR, Inc.Property 8,797 9,203 8,703 8,309 8,006 managementOther operating 6,100 4,966 2,800 2,751 2,735 expensesReal estate 155,056 155,476 143,464 127,391 117,934 depreciation andamortizationInterest expense 38,597 39,317 60,435 42,523 34,417

Casualty-relatedcharges/ 102 1,251 1,316 (1,088 ) 246 (recoveries),netGeneral and 10,971 14,978 14,531 12,197 12,338 administrativeTax provision/ 1,526 164 2 1,499 125 (benefit), net(Income)/lossfrom (8,021 ) (3,367 ) (118,486 ) (12,713 ) (6,625 )unconsolidatedentitiesInterest incomeand other (2,421 ) (2,700 ) (2,406 ) (1,875 ) (1,310 )(income)/expense, netJoint venture (1,274 ) (1,388 ) (2,073 ) (6,386 ) (2,845 )management andother feesOther 2,027 2,025 1,713 1,619 1,678 depreciation andamortization(Gain)/loss on (61,303 ) - - - (5,282 )sale of realestate ownedNet income/(loss) 4,325 319 7,278 2,218 2,699 attributable tononcontrollinginterestsTotal $ 212,253 $ 225,465 $ 215,236 $ 203,649 $ 199,735 consolidated NOI

Attachment 16(C)

UDR, Inc.

Definitions and Reconciliations

June 30, 2020

(Unaudited)

NOI Enhancing Capital Expenditures ("Cap Ex"): The Company defines NOIEnhancing Capital Expenditures as expenditures that result in increased incomegeneration or decreased expense growth over time. Management considers NOI Enhancing Capital Expenditures a useful metric forinvestors as it quantifies the amount of capital expenditures that are expectedto grow, not just maintain, revenues or to decrease expenses. Non-Mature Communities: The Company defines Non-Mature Communities as thosecommunities that have not met the criteria to be included in same-storecommunities. Non-Residential / Other: The Company defines Non-Residential / Other asnon-apartment components of mixed-use properties, land held, properties beingprepared for redevelopment and properties where a material change in home counthas occurred. Other Markets: The Company defines Other Markets as the accumulation ofindividual markets where it operates less than 1,000 Combined Same-Store homes.Management considers Other Markets a useful metric as the operating results forthe individual markets are not representative of the fundamentals for thosemarkets as a whole. Physical Occupancy: The Company defines Physical Occupancy as the number ofoccupied homes divided by the total homes available at a community. QTD Combined Same-Store Communities: QTD Combined Same-Store Communitiesrepresent the QTD UDR Same-Store Communities and the Acquired JV Same-StorePortfolio Communities as a single portfolio, as if the Acquired JV Same-StorePortfolio Communities were 100% owned by UDR during all periods presented. QTD UDR Same-Store Communities: The Company defines QTD UDR Same-StoreCommunities as those communities Stabilized for five full consecutive quarters.These communities were owned and had stabilized operating expenses as of thebeginning of the quarter in the prior year, were not in process of anysubstantial redevelopment activities, and were not held for disposition. Recurring Capital Expenditures: The Company defines Recurring CapitalExpenditures as expenditures that are necessary to help preserve the value ofand maintain functionality at its communities. Redevelopment Communities: The Company generally defines RedevelopmentCommunities as those communities where substantial redevelopment is in progressthat is expected to have a material impact on the community's operations,including occupancy levels and future rental rates. Redevelopment Projected Weighted Average Return on Incremental CapitalInvested: The projected weighted average return on incremental capital investedfor redevelopment projects is NOI as set forth in the definition ofStabilization Period for Redevelopment Yield, less Recurring CapitalExpenditures, minus the project's annualized NOI prior to commencing theredevelopment, less Recurring Capital Expenditures, divided by the total costof the project. Sold Communities: The Company defines Sold Communities as those communitiesthat were disposed of prior to the end of the most recent quarter. Stabilization/Stabilized: The Company defines Stabilization/Stabilized as whena community's occupancy reaches 90% or above for at least three consecutivemonths. Stabilized, Non-Mature Communities: The Company defines Stabilized, Non-MatureCommunities as those communities that have reached Stabilization but are notyet in the same-store portfolio. Stabilization Period for Development Yield: The Company defines theStabilization Period for Development Yield as the forward twelve month NOI,excluding any remaining lease-up concessions outstanding, commencing one yearfollowing the delivery of the final home of the project. Stabilization Period for Redevelopment Yield: The Company defines thestabilization period for a redevelopment property yield for purposes ofcomputing the Redevelopment Projected Weighted Average Return on IncrementalCapital Invested, as the forward twelve month NOI, excluding any remaininglease-up concessions outstanding, commencing one year following the delivery ofthe final home of a project. Stabilized Yield on Developments: The Company calculates expected stabilizedyields on development as follows: projected stabilized NOI less management feesdivided by budgeted construction costs on a project-specific basis. Projectedstabilized NOI for development projects, calculated in accordance with the NOIreconciliation provided on Attachment 16(B), is set forth in the definition ofStabilization Period for Development Yield. Given the differing completiondates and years for which NOI is being projected for these communities as wellas the complexities associated with estimating other expenses upon completionsuch as corporate overhead allocation, general and administrative costs andcapital structure, a reconciliation to GAAP measures is not meaningful.Projected NOI for these projects is neither provided, nor is representative ofManagement's expectations for the Company's overall financial performance orcash flow growth and there can be no assurances that forecast NOI growthimplied in the estimated construction yield of any project will be achieved. Management considers estimated Stabilized Yield on Developments as a usefulmetric for investors as it helps provide context to the expected effects thatdevelopment projects will have on the Company's future performance oncestabilized. Total Revenue per Occupied Home: The Company defines Total Revenue per OccupiedHome as rental and other revenues, calculated in accordance with GAAP, dividedby the product of occupancy and the number of apartment homes. Management considers Total Revenue per Occupied Home a useful metric forinvestors as it serves as a proxy for portfolio quality, both geographic andphysical. TRS: The Company's taxable REIT subsidiary ("TRS") focuses on makinginvestments and providing services that are otherwise not allowed to be made orprovided by a REIT. YTD Combined Same-Store Communities: YTD Combined Same-Store Communitiesrepresent the YTD UDR Same-Store Communities and the Acquired JV Same-StorePortfolio Communities as a single portfolio, as if the Acquired JV Same-StorePortfolio Communities were 100% owned by UDR during all periods presented. YTD UDR Same-Store Communities: The Company defines YTD UDR Same-StoreCommunities as those communities Stabilized for two full consecutive calendaryears. These communities were owned and had stabilized operating expenses as ofthe beginning of the prior year, were not in process of any substantialredevelopment activities, and were not held for disposition.

Forward-Looking Statements

Certain statements made in this press release 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 identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors, which include, but are not limited to, the impact of the COVID-19 pandemic and measures intended to prevent its spread or address its effects, unfavorable changes in the apartment market, changing economic conditions, the impact of inflation/deflation on rental rates and property operating expenses, expectations concerning availability of capital and the stabilization of the capital markets, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule, expectations on job growth, home affordability and demand/supply ratio for multifamily housing, expectations concerning development and redevelopment activities, expectations on occupancy levels and rental rates, expectations concerning the joint ventures with third parties, expectations that technology will help grow net operating income, expectations on annualized net operating income and other risk factors discussed in documents filed by the Company with the SEC from time to time, including the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking statements. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the U.S. securities laws.

About UDR, Inc.

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of June 30, 2020, UDR owned or had an ownership position in 51,320 apartment homes including 819 homes under development. For over 48 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.

Attachment 1

UDR, Inc.

Consolidated Statements of Operations

(Unaudited)^(1)

Three Months Ended Six Months Ended

June 30, June 30,

In thousands, except per 2020 2019 2020 2019share amounts REVENUES:Rental income^(2) $ 305,982 $ 278,463 $ 626,075 $ 546,385

Joint venture management 1,274 2,845 2,662 5,596 and other fees^Total revenues 307,256 281,308 628,737 551,981

OPERATING EXPENSES:Property operating and 48,717 42,894 98,200 84,833 maintenanceReal estate taxes and 45,012 35,834 90,157 72,134 insuranceProperty management 8,797 8,006 18,000 15,709

Other operating expenses 6,100 2,735 11,066 8,381

Real estate depreciation 155,056 117,934 310,532 230,402 and amortizationGeneral and 10,971 12,338 25,949 24,805 administrativeCasualty-related charges 102 246 1,353 246 /(recoveries), netOther depreciation and 2,027 1,678 4,052 3,334 amortizationTotal operating expenses 276,782 221,665 559,309 439,844

Gain/(loss) on sale of 61,303 5,282 61,303 5,282 real estate ownedOperating income 91,777 64,925 130,731 117,419

Income/(loss) from 8,021 6,625 11,388 6,674 unconsolidated entities^(2)Interest expense (38,597 ) (34,417 ) (77,914 ) (67,959 )

Interest income and 2,421 1,310 5,121 11,123 other income/(expense),net^ Income/(loss) before 63,622 38,443 69,326 67,257 income taxesTax (provision)/benefit, (1,526 ) (125 ) (1,690 ) (2,337 )net Net Income/(loss) 62,096 38,318 67,636 64,920

Net (income)/lossattributable toredeemable (4,291 ) (2,652 ) (4,604 ) (4,709 )noncontrolling interestsin the OP and DownREITPartnershipNet (income)/loss (34 ) (47 ) (403 ) (89 )attributable tononcontrolling interests Net income/(loss) 57,771 35,619 62,992 60,122 attributable to UDR,Inc.Distributions to (1,062 ) (1,031 ) (2,128 ) (2,042 )preferred stockholders -Series E (Convertible) Net income/(loss) $ 56,709 $ 34,588 $ 60,864 $ 58,080 attributable to commonstockholders Income/(loss) per $ 0.19 $ 0.12 $ 0.21 $ 0.21 weighted average commonshare - basic:Income/(loss) per $ 0.19 $ 0.12 $ 0.21 $ 0.21 weighted average commonshare - diluted: Common distributions $ 0.3600 $ 0.3425 $ 0.7200 $ 0.6850 declared per share Weighted average number 294,710 281,960 294,584 279,494 of common sharesoutstanding - basicWeighted average number 295,087 282,575 295,083 280,081 of common sharesoutstanding - diluted

^(1) See Attachment 16 for definitions and other terms.

During the three months ended June 30, 2020, UDR collected 96.1% of billed residential revenue and 70.8% of billed retail revenue. Of the 3.9% and^ 29.2% not collected, UDR reserved (reflected as a reduction to revenues)(2) approximately 1.7% or $5.5 million for residential, including $0.4 million for UDR's share from unconsolidated joint ventures, and 163.6% or $3.5 million, including straight-line rent receivables and $0.1 million for UDR's share from unconsolidated joint ventures, for retail. The reserves are based on probability of collection.

Attachment 2

UDR, Inc.

Funds From Operations

(Unaudited)^(1)

Three Months Ended Six Months Ended

June 30, June 30,

In thousands, except per 2020 2019 2020 2019share and unit amounts Net income/(loss) $ 56,709 $ 34,588 $ 60,864 $ 58,080 attributable to commonstockholders Real estate depreciation 155,056 117,934 310,532 230,402 and amortizationNoncontrolling interests 4,325 2,699 4,644 4,798

Real estate depreciationand amortization on 8,745 15,211 17,561 30,885 unconsolidated jointventuresNet gain on the sale of - (5,251 ) - (5,251 )unconsolidateddepreciable propertyNet gain on the sale of (61,303 ) - (61,303 ) - depreciable real estateownedFunds from operations("FFO") attributable to $ 163,532 $ 165,181 $ 332,298 $ 318,914 common stockholders andunitholders, basic Distributions topreferred stockholders - 1,062 1,031 2,128 2,042 Series E (Convertible)^(2) FFO attributable to $ 164,594 $ 166,212 $ 334,426 $ 320,956 common stockholders andunitholders, diluted FFO per weighted average $ 0.52 $ 0.54 $ 1.05 $ 1.05 common share and unit,basicFFO per weighted average $ 0.51 $ 0.54 $ 1.04 $ 1.05 common share and unit,diluted Weighted average numberof common shares and OP/ 317,096 304,696 316,891 302,998 DownREIT Unitsoutstanding - basic Weighted average numberof common shares, OP/ 320,426 308,322 320,372 306,596 DownREIT Units, andcommon stock equivalentsoutstanding - diluted Impact of adjustments toFFO:Promoted interest on $ - $ - $ - $ (6,482 )settlement of notereceivable, net of taxLegal and other costs 1,586 - 2,344 3,660

Net gain on the sale of - (5,282 ) - (5,282 )non-depreciable realestate ownedUnrealized (gain)/losson unconsolidated (3,334 ) - (3,302 ) (229 )technology investments,net of taxSeverance costs and - - 1,642 - other restructuringexpenseCasualty-related charges 249 246 1,648 261 /(recoveries), netCasualty-related charges/(recoveries) on - 81 31 227 unconsolidated jointventures, net $ (1,499 ) $ (4,955 ) $ 2,363 $ (7,845 )

FFO as Adjustedattributable to common $ 163,095 $ 161,257 $ 336,789 $ 313,111 stockholders andunitholders, diluted FFO as Adjusted per $ 0.51 $ 0.52 $ 1.05 $ 1.02 weighted average commonshare and unit, diluted Recurring capital (12,504 ) (12,750 ) (21,713 ) (19,968 )expendituresAFFO attributable to $ 150,591 $ 148,507 $ 315,076 $ 293,143 common stockholders andunitholders, diluted AFFO per weighted $ 0.47 $ 0.48 $ 0.98 $ 0.96 average common share andunit, diluted

^(1) See Attachment 16 for definitions and other terms.

Series E preferred shares are dilutive for purposes of calculating FFO per^ share for the three and six months ended June 30, 2020 and June 30, 2019.(2) Consequently, distributions to Series E preferred stockholders are added to FFO and the weighted average number of shares are included in the denominator when calculating FFO per common share and unit, diluted.

Attachment 3

UDR, Inc.

Consolidated Balance Sheets

(Unaudited)^(1)

June 30, December 31,

In thousands, except share and per share 2020 2019amounts ASSETS Real estate owned:Real estate held for investment $ 12,643,851 $ 12,532,324

Less: accumulated depreciation (4,372,321 ) (4,131,330 )

Real estate held for investment, net 8,271,530 8,400,994

Real estate under development (net of 131,585 69,754 accumulated depreciation of $203 and $23)Total real estate owned, net of accumulated 8,403,115 8,470,748 depreciation Cash and cash equivalents 833 8,106

Restricted cash 22,043 25,185

Notes receivable, net 155,956 153,650

Investment in and advances to unconsolidated 598,058 588,262 joint ventures, netOperating lease right-of-use assets 202,586 204,225

Other assets 181,880 186,296

Total assets $ 9,564,471 $ 9,636,472

LIABILITIES AND EQUITY Liabilities:Secured debt $ 1,112,870 $ 1,149,441

Unsecured debt 3,653,934 3,558,083

Operating lease liabilities 197,092 198,558

Real estate taxes payable 31,952 29,445

Accrued interest payable 47,087 45,199

Security deposits and prepaid rent 45,607 48,353

Distributions payable 115,254 109,382

Accounts payable, accrued expenses, and other 111,264 90,032 liabilitiesTotal liabilities 5,315,060 5,228,493

Redeemable noncontrolling interests in the OP 834,466 1,018,665 and DownREIT Partnership Equity:Preferred stock, no par value; 50,000,000shares authorized 2,695,363 shares of 8.00% 44,764 46,200 Series E Cumulative Convertible issued andoutstanding (2,780,994 shares at December 31,2019)14,452,717 shares of Series F outstanding 1 1 (14,691,274 shares at December 31, 2019)Common stock, $0.01 par value; 350,000,000shares authorized 295,067,779 shares issued and 2,951 2,946 outstanding (294,588,305 shares at December 31,2019)Additional paid-in capital 5,794,428 5,781,975

Distributions in excess of net income (2,432,882 ) (2,462,132 )

Accumulated other comprehensive income/(loss), (11,940 ) (10,448 )netTotal stockholders' equity 3,397,322 3,358,542

Noncontrolling interests 17,623 30,772

Total equity 3,414,945 3,389,314

Total liabilities and equity $ 9,564,471 $ 9,636,472

^(1) See Attachment 16 for definitions and other terms.



Attachment 4(C)

UDR, Inc.

Selected Financial Information

(Dollars in Thousands)

(Unaudited)^(1)

Quarter EndedCoverage Ratios June 30, 2020 Net income/(loss) $ 62,096

Adjustments: Interest expense, including costs associated with debt 38,597 extinguishmentReal estate depreciation and amortization 155,056

Other depreciation and amortization 2,027

Tax provision/(benefit), net 1,526

Net gain on the sale of depreciable real estate owned (61,303 )

Adjustments to reflect the Company's share of EBITDAre of 13,295 unconsolidated joint venturesEBITDAre $ 211,294

Casualty-related charges/(recoveries), net 249

Legal and other costs 1,586

(Income)/loss from unconsolidated entities (8,021 )

Adjustments to reflect the Company's share of EBITDAre of (13,295 )unconsolidated joint venturesManagement fee expense on unconsolidated joint ventures (584 )

Consolidated EBITDAre - adjusted for non-recurring items $ 191,229

Annualized consolidated EBITDAre - adjusted for non-recurring $ 764,916 items Interest expense, including costs associated with debt 38,597 extinguishmentCapitalized interest expense 1,663

Total interest $ 40,260

Preferred dividends $ 1,062

Total debt $ 4,766,804

Cash (833 )

Net debt $ 4,765,971

Consolidated Interest Coverage Ratio - adjusted for 4.7x non-recurring items Consolidated Fixed Charge Coverage Ratio - adjusted for 4.6x non-recurring items Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring 6.2x items Debt Covenant Overview Unsecured Line of Credit Covenants^ Required Actual Compliance(2) Maximum Leverage Ratio ?60.0% 34.0%^(2) Yes

Minimum Fixed Charge Coverage Ratio ?1.5x 4.1x Yes

Maximum Secured Debt Ratio ?40.0% 11.1% Yes

Minimum Unencumbered Pool Leverage ?150.0% 341.3% YesRatio Senior Unsecured Note Covenants^(3) Required Actual Compliance Debt as a percentage of Total ?65.0% 34.3%^(3) YesAssetsConsolidated Income Available forDebt Service to Annual Service ?1.5x 5.2x YesChargeSecured Debt as a percentage of ?40.0% 8.0% YesTotal AssetsTotal Unencumbered Assets to ?150.0% 309.1% YesUnsecured Debt CommercialSecurities Ratings Debt Outlook Paper

Moody's Investors Service Baa1 Stable P-2S&P Global Ratings BBB+ Stable A-2 Gross % of Number 2Q 2020 Carrying Value Total Gross of NOI ^(1)Asset Summary Homes ($000s) % of NOI ($000s) Carrying Value Unencumbered 39,437 $ 179,166 84.4 % $ 10,730,870 84.0 %assetsEncumbered 7,934 33,087 15.6 % 2,044,769 16.0 %assets 47,371 $ 212,253 100.0 % $ 12,775,639 100.0 %

^(1) See Attachment 16 for definitions and other terms.

^(2) As defined in our credit agreement dated September 27, 2018.

^ As defined in our indenture dated November 1, 1995 as amended, supplemented(3) or modified from time to time.

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CONTACT: Trent Trujillo Phone: 720-283-6135