Business Wire | Jan 21, 2021 04:16PM EST

UDR Reports Tax Status of 2020 Distributions

Jan. 21, 2021

DENVER--(BUSINESS WIRE)--Jan. 21, 2021--UDR, Inc. (NYSE: UDR), a leading multifamily real estate investment trust, reported today the tax status of its 2020 distributions paid to shareholders. Details on the classifications of the distributions are included in the table below:

Ordinary Qualified Capital Unrecaptured NondividendRecord Payment Distribution Taxable Dividends Gain Sec. 1250 Distributions^Date Date Per Share Dividends^ (20% (20% Gain 3 1,4 Rate)^1 Rate)^2 (25% Rate)^2



Common Shares:

1/10/ 1/31/ $ 0.34250 72.5497% 0.2710% 20.9085% 6.2708% 0.0000%2020 2020

4/10/ 4/30/ $ 0.36000 72.5497% 0.2710% 20.9085% 6.2708% 0.0000%2020 2020

7/10/ 7/31/ $ 0.36000 72.5497% 0.2710% 20.9085% 6.2708% 0.0000%2020 2020

10/12/ 11/2/ $ 0.36000 72.5497% 0.2710% 20.9085% 6.2708% 0.0000%2020 2020

Total $ 1.42250



Preferred Shares Series E:

1/10/ 1/31/ $ 0.37080 72.5497% 0.2710% 20.9085% 6.2708% 0.0000%2020 2020

4/10/ 4/30/ $ 0.38980 72.5497% 0.2710% 20.9085% 6.2708% 0.0000%2020 2020

7/10/ 7/31/ $ 0.38980 72.5497% 0.2710% 20.9085% 6.2708% 0.0000%2020 2020

10/12/ 11/2/ $ 0.38980 72.5497% 0.2710% 20.9085% 6.2708% 0.0000%2020 2020

Total $ 1.54020

(1) - the sum of these amounts will be reported on Box 1a of Form 1099-DIV asTotal ordinary dividends(2) - the sum of these amounts will be reported on Box 2a of Form 1099-DIV asTotal capital gain distributions(3) - these amounts will be reported on Box 3 of Form 1099-DIV as Nondividenddistributions(4) - these amounts will be reported on Box 5 of Form 1099-DIV as Section 199Adividends Pursuant to Treas. Reg. ? 1.1061-6(c), UDR, Inc. is disclosing below two additional amounts for purposes of Section 1061 of the Internal Revenue Code. Section 1061 is generally applicable to direct and indirect holders of "applicable partnership interests."

Record Payment Form 1099-DIV Box 2a, One Year Amounts Three Year AmountsDate Date Total Capital Gain Disclosure Per Disclosure Per Distr. Per Share Share Share Common Shares:1/10/2020 1/31/2020 $0.093090 $0.034229 $0.034229

4/10/2020 4/30/2020 $0.097846 $0.035978 $0.035978

7/10/2020 7/31/2020 $0.097846 $0.035978 $0.035978

10/12/2020 11/2/2020 $0.097846 $0.035978 $0.035978

Total $0.386628 $0.142163 $0.142163



Preferred Shares Series E:

1/10/2020 1/31/2020 $0.100781 $0.037057 $0.037057

4/10/2020 4/30/2020 $0.105945 $0.038955 $0.038955

7/10/2020 7/31/2020 $0.105945 $0.038955 $0.038955

10/12/2020 11/2/2020 $0.105945 $0.038955 $0.038955

Total $0.418616 $0.153922 $0.153922

Shareholders of record of the Company's common and preferred stock will receive an Internal Revenue Service Form 1099-DIV from EQ Shareowner Services, the Company's 2020 distribution paying agent. The form will report the distributions paid and the amounts designated as total ordinary dividends, qualified dividends, total capital gains, unrecaptured section 1250 gains, nondividend distributions, and section 199A dividends. If shares were held in "street name" during 2020, the IRS form will be provided by a bank, brokerage firm, or nominee. Because the Company's tax return has not yet been filed for the year ended December 31, 2020, the distribution allocations presented herein have been calculated using the best available information to date.

The tax treatment of these distributions by state and local authorities varies and may not be the same as the IRS's treatment. Because federal and state tax laws affect individuals differently, the Company cannot advise shareholders on how distributions should be reported on their tax returns. The Company encourages shareholders to consult with their own tax advisors with respect to the federal, state and local income tax consequences of these distributions.

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 properties in targeted U.S. markets. As of September 30, 2020, UDR owned or had an ownership position in 51,649 apartment homes including 1,031 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. Additional information can be found on the Company's website at ir.udr.com.

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CONTACT: UDR, Inc. Trent Trujillo ttrujillo@udr.com 720-283-6135