UDR : 1Q 2022 UDR Earnings Release

Press Release

DENVER, CO - April 26, 2022

Contact: Trent Trujillo Email:[e-mail]

UDR ANNOUNCES FIRST QUARTER 2022 RESULTS AND INCREASES FULL-YEAR 2022 GUIDANCE RANGES

UDR, Inc. (the "Company") (NYSE:UDR), announced today its first quarter 2022 results. Net Income, Funds from Operations ("FFO"), FFO as Adjusted ("FFOA"), and Adjusted FFO ("AFFO") per diluted share for the quarter ended March 31, 2022 are detailed below.

Quarter Ended March 31

1Q 2022	1Q 2022	1Q 2021	$ Change vs.	% Change vs.
Metric	Actual	Guidance	Actual	Prior Year Period	Prior Year Period
Net Income per diluted share	$0.04	$0.02 to $0.04	$0.01	$0.03	300%
FFO per diluted share	$0.54	$0.53 to $0.55	$0.32	$0.22	69%
FFOA per diluted share	$0.55	$0.53 to $0.55	$0.47	$0.08	17%
AFFO per diluted share	$0.51	$0.50 to $0.52	$0.44	$0.07	16%

• • Same-Store ("SS") results for the first quarter 2022 versus the first quarter 2021 and the fourth quarter 2021 are summarized below.

Concessions reflected on a cash basis:Concessions reflected on a straight-line basis:

Year-Over-Year	Sequential:
("YOY"): 1Q 2022	1Q 2022 vs.
SS Growth / (Decline)	vs. 1Q 2021	4Q 2021
Revenue	10.8%	1.8%	9.8%	2.1%
Expense	4.2%	2.0%	4.2%	2.0%
Net Operating Income ("NOI")	14.0%	1.7%	12.6%	2.1%

Year-Over-Year	Sequential:
("YOY"): 1Q 2022 vs.	1Q 2022 vs.
1Q 2021	4Q 2021

• • The Company's weighted average SS physical occupancy for the first quarter of 2022 was 97.3 percent, compared to 96.3 percent for the first quarter of 2021 and 97.1 percent for the fourth quarter of 2021.

• • As previously announced, during the quarter, the Company entered intoforward equity sale agreements for 7.0million shares of common stock at an initial forward price per share of approximately $57.57 for estimated future net proceeds of approximately $402.8 million, subject to adjustment as described later in this release. No shares under these forward sale agreements have been settled.

• • During the quarter, the Company committed to, and fully funded, an $11.6 million Developer Capital Program ("DCP") investment, realized the redemption of two DCP investments that generated life-to-date proceeds totaling $91.2 million on a total investment of $58.3 million, commenced two developments with an aggregate cost of approximately $187.5 million, and entered into an agreement to acquire a land site in Southeast Florida for future development for $16.0 million.

• • During the quarter, the Company committed to invest an aggregate of $35.0 million into the RET Strategic Fund and two Climate Technology Funds, of which $13.2 million was contributed as of quarter end. Subsequent to quarter-end, the Companycommitted to invest $10.0 million in the RET Ventures ESG Fund.The Climate Technology and ESG funds serve to identify in-home and property-wide real estate technologies that are intended to help UDR, its residents, and others address climate change by reducing our collective carbon footprint. These investments further support UDR's best-in-class commitment to engaging in socially responsible Environmental, Social, and Governance ("ESG") activities.

"Our first quarter earnings results compare very well versus initial expectations provided in February due to operating fundamentals that have remained robust and continue to surprise to the upside," said Tom Toomey, UDR's Chairman and CEO. "Based on these current trends and the innovative operating initiatives we continue to implement, we raised full-year 2022 guidance expectations, further exemplifying the ongoing value our team creates for our stakeholders in what was already expected to be one of the best years in UDR's history."

Outlook

For the second quarter of 2022, the Company has established the following earnings guidance ranges and the Company has increased its previously provided full-year 2022 Same-Store and earnings guidance ranges(1):

Q2 2022	Q1 2022
Outlook	Actual
Net Income / (Loss) per diluted share $0.04 to $0.06	$0.04
$0.54
$0.55
$0.51

Updated

Full-Year 2022

Outlook

$0.24 to $0.30

$2.24 to $2.30

$2.25 to $2.31

$2.05 to $2.11

YOY Growth/(Decline): concessions reflected on a cash basis:

8.5% to 10.0%

3.0% to 4.0%

FFO per diluted share FFOA per diluted share AFFO per diluted share

$0.55 to $0.57 $0.55 to $0.57 $0.50 to $0.52

SS Revenue SS Expense SS NOI

N/A N/A N/A

YOY Growth/(Decline): concessions reflected on a straight-line basis:

SS Revenue SS NOI

N/A N/A

Prior	Change to 2022
Full-Year 2022	Guidance, at
Outlook	Midpoint
$0.22 to $0.30	$0.01
$2.22 to $2.30	$0.01
$2.22 to $2.30	$0.02
$2.02 to $2.10	$0.02
6.5% to 8.5%	1.75%
2.5% to 3.5%	0.50%
14.0% 10.75% to 12.75%	8.5% to 11.5%	1.75%
7.5% to 9.5%	1.25%
9.5% to 12.5%	1.50%

10.8% 4.2%

9.8% 12.6%

9.0% to 10.5% 11.5% to 13.5%

(1)

Additional assumptions for the Company's second quarter and 2022 outlook can be found on Attachment 14 of the Company's related quarterly Supplemental Financial Information ("Supplement"). A reconciliation of FFO per share, FFOA per share, and AFFO per share to GAAP Net Income per share can be found on Attachment 15(D) of the Company's related quarterly Supplement. Non-GAAP financial measures and other terms, as used in this earnings release, are defined and further explained on Attachments 15(A) through 15(D), "Definitions and Reconciliations," of the Company's related quarterly Supplement.

Recent Operating Trends

"Strong pricing power, as evidenced by blended lease rate growth that continued to accelerate to the mid-to-high teens into the second quarter, continues to provide a robust tailwind for UDR's elevated same-store growth," said Mike Lacy, UDR's Senior Vice President of Operations. "In addition, future growth prospects remain attractive, driven by healthy demand for multifamily residences, seasonally strong market rent growth, record low resident turnover, a low-double-digit loss-to-lease, and occupancy above 97 percent."

Summary of Fourth Quarter 2021, First Quarter 2022, and April 2022 Residential Operating Trends(1)

As of and Through April 22, 2022

4Q	Jan	Feb	Mar
Same-Store Metric	2021	2022	2022	2022
Weighted Average Physical Occupancy	97.1%	97.4%	97.2%	97.3%	97.3%97.0% - 97.3%
Effective Blended Lease Rate Growth(2)	11.7%	13.1%	14.0%	14.9%	14.1%16.0% - 17.0%

Q1 2022

Apr 2022

• (1) Metrics shown here are as of April 22, 2022, and are for the Company's same-store residential portfolio.

• (2) The Company defines Effective Blended Lease Rate Growth as the combined proportional growth as a result of (a) Effective New Lease Rate Growth and (b) Effective Renewal Lease Rate Growth. Management considers Effective Blended Lease Rate Growth a useful metric for investors as it assesses combined proportional market-level new and in-place demand trends. Please refer to the "Definitions and Reconciliations" section of the Company's related quarterly Supplement for additional details.

Since the second quarter of 2020 (or the first full quarter in which results were impacted by the COVID-19 pandemic), the Company has consistently achieved ultimate cash revenue collections as a percentage of billed revenue in the 98.0%-98.5% range and expects collections to remain within this range throughout 2022. For the first quarter of 2022, the Company reduced its residential bad debt reserve to $11.9 million, including $0.6 million for the Company's share from unconsolidated joint ventures, which compares to a quarter-end accounts receivable balance of $24.4 million.

First Quarter 2022 Operating Results

In the first quarter, total revenue increased by $55.8 million YOY, or 18.5 percent, to $357.3 million. This increase was primarily attributable to growth in revenue from Same-Store communities and stabilized, non-mature communities. The first quarter annualized rate of resident turnover decreased by 530 basis points versus the prior year period to 34.2 percent.

In the table below, the Company has presented YOY Same-Store results by region, with concessions accounted for on both cash and straight-line bases.

Summary of Same-Store Results in First Quarter 2022 versus First Quarter 2021

Region	Revenue Growth / (Decline)	Expense Growth / (Decline)	NOI Growth / (Decline)	% of Same-Store Portfolio(1)	Physical Occupancy(2)	YOY Change in Occupancy
West Mid-Atlantic Northeast Southeast Southwest Other Markets	11.8% 6.9% 10.6% 14.0% 11.2% 13.4%	3.7% 5.3% 2.4% 6.2% 4.6% 4.3%	14.8% 7.7% 15.9% 18.0% 15.4% 17.3%	34.9% 21.0% 18.1% 13.0% 7.0% 6.0%	97.2% 97.3% 97.4% 97.3% 97.3% 97.2%	1.4% 0.9% 2.2% 0.2% 0.4% 0.2%
Total (Cash)	10.8%	4.2%	14.0%	100.0%	97.3%	1.0%
Total (Straight-Line)	9.8%	-	12.6%	-	-	-

• (1) Based on 1Q 2022 Same-Store NOI. For definitions of terms, please refer to the "Definitions and Reconciliations" section of the Company's related quarterly Supplement.

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

In the table below, the Company has presented sequential Same-Store results by region, with concessions accounted for on both cash and straight-line bases.

Summary of Same-Store Results in First Quarter 2022 versus Fourth Quarter 2021

Region	Revenue Growth / (Decline)	Expense Growth / (Decline)	NOI Growth / (Decline)	% of Same-Store Portfolio(1)	Physical Occupancy(2)	Sequential Change in Occupancy
West Mid-Atlantic Northeast Southeast Southwest Other Markets	0.7% 1.0% 2.8% 4.3% 1.6% 1.6%	(0.2)% 3.7% 1.7% 5.4% 3.4% (3.8)%	1.0% (0.1)% 3.4% 3.7% 0.5% 3.7%	34.9% 21.0% 18.1% 13.0% 7.0% 6.0%	97.2% 97.3% 97.4% 97.3% 97.3% 97.2%	0.3% 0.2% 0.5% (0.2)% (0.2)% (0.3)%
Total (Cash)	1.8%	2.0%	1.7%	100.0%	97.3%	0.2%
Total (Straight-Line)	2.1%	-	2.1%	-	-	-

• (1) Based on 1Q 2022 Same-Store NOI. For definitions of terms, please refer to the "Definitions and Reconciliations" section of the Company's related quarterly Supplement.

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

Development Activity and Other Projects

During the first quarter, the Company delivered initial apartment homes at Cirrus (Denver, CO), The George Apartments (King of Prussia, PA), and Vitruvian West Phase 3 (Addison, TX), all of which continue their successful lease-ups. Additionally, during the quarter, the Company commenced construction of Villas at Fiori, a $53.5 million, 85-home townhouse community in Addison, TX, and Meridian, a $134.0 million, 330-home community in Tampa, FL.

At the end of the first quarter, the Company's development pipeline totaled $689.0 million and was 66.5 percent funded. The Company's active development pipeline includes seven communities, one each in Denver, CO; Dublin, CA; King of Prussia, PA; Washington, D.C.; and Tampa, FL, and two communities in Addison, TX, for a combined total of 1,832 homes.

At the end of the first quarter, the Company's pipeline of densification projects, which features the addition of 58 new apartment homes at three communities, totaled $27.0 million and was 53.2 percent funded.

DCP Activity

During the quarter, the Company committed to invest, and fully funded, $11.6 million in one DCP project, a recapitalization of a stabilized operating community, as summarized below.

Community	Location (MSA)	Commitment ($ millions)	Homes	Return Rate	Investment Type
Meetinghouse	Portland, OR	$11.6	232	8.25%	Preferred Equity

During the quarter, two DCP investments located in Nashville, TN, and Kissimmee, FL, were redeemed. The Company's life-to-date proceeds for the investments totaled $91.2 million, its cash proceeds realized upon redemption totaled $77.1 million, and its investment in the projects totaled $58.3 million.

At the end of the first quarter, the Company's preferred equity investments under its DCP platform, including accrued return, totaled $331.3 million with a weighted average return rate of 10.0 percent, and a weighted average estimated remaining term of 3.0 years.

Capital Markets and Balance Sheet Activity

"Our balance sheet remains in strong shape due to available liquidity totaling $1.7 billion, unencumbered NOI totaling 88 percent, and no meaningful debt maturities until 2024. In addition, we continue to make progress on improving our leverage metrics, highlighted by net debt-to-EBITDAre declining to 6.4x in the first quarter from 7.0x a year ago, with additional progress expected in the coming quarters," said Joe Fisher, UDR's Chief Financial Officer. "During the quarter we raised an additional $400 million of forward equity at a beneficial average price, which should continue to drive our accretive external growth in the quarters ahead."

As previously announced, during the quarter the Company entered intoforward equity sale agreements for 7.0 millionshares of common stock at an initial forward price per share of approximately $57.57. The initial forward price per share will be adjusted at settlement to reflect the then-current federal funds rate and the amount of dividends paid to holders of UDR common stock over the term of the forward equity sale agreements. No shares under these new forward equity sale agreements have been settled. The final date by which shares sold under these new forward equity sale agreements must be settled is March 30, 2023.

As of March 31, 2022, the Company had $1.7 billion of liquidity through a combination of cash, undrawn capacity on its credit facilities, and estimated proceeds of approximately $639.3 million from the potential settlement of approximately 11.4 million shares subject to previously-announced forward equity sale agreements (subject to adjustment as described above, and which have final settlement dates ranging between August 1, 2022 and March 30, 2023). Please see Attachment 14 of the Company's related quarterly Supplement for additional details on projected capital sources and uses.

The Company's total indebtedness as of March 31, 2022 was $5.5 billion with no remaining consolidated maturities until 2024, excluding principal amortization and amounts on the Company's commercial paper program. In the table below, the Company has presented select balance sheet metrics for the quarter ended March 31, 2022 and the comparable prior year period.

Quarter Ended March 31

Balance Sheet Metric	1Q 2022	1Q 2021	Change
Weighted Average Interest Rate	2.80%	2.84%	(0.04)%
Weighted Average Years to Maturity(1)	7.4	8.2	(0.8)
Consolidated Fixed Charge Coverage Ratio	5.3x	4.5x	0.8x
Consolidated Debt as a percentage of Total Assets	34.3%	35.3%	(1.0)%
Consolidated Net-Debt-to-EBITDAre	6.4x	7.0x	(0.6)x

(1)If the Company's commercial paper balance was refinanced using its line of credit, the weighted average years to maturity would be 7.6 years both with and without extensions for 1Q 2022 and 8.2 years without extensions and 8.3 years with extensions for 1Q 2021.

ESG

During the quarter, the Company committed to invest an aggregate of $35.0 million into the RET Strategic Fund and two Climate Technology Funds, of which $13.2 million was contributed as of quarter end. Subsequent to quarter-end, the Companycommitted to invest $10.0 million in the RET Ventures ESG Fund.The Climate Technology and ESG funds serve to identify in-home and property-wide real estate technologies that are intended to help UDR, its residents, and others address climate change by reducing our collective carbon footprint.

In addition, the Company is actively engaging with the Science Based Targets Initiative to establish how it can contribute to a lower-carbon future. These actions further support UDR'sresidential sector-leading GRESB score and best-in-class commitment to engaging in socially responsible ESG activities.

Dividend

As previously announced, the Company's Board of Directorsdeclared a regular quarterly dividend on its common stock for the first quarter of 2022 in the amount of $0.38 per share. The dividend will be paid in cash on May 2, 2022 to UDR common shareholders of record as of April 11, 2022. The first quarter 2022 dividend will represent the 198th consecutive quarterly dividend paid by the Company on its common stock.

Attachment 15(A)

UDR, Inc.

Definitions and Reconciliations

March 31, 2022

(Unaudited)

Acquired Communities: The Company defines Acquired Communities as those 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") attributable to common stockholders and unitholders: The Company defines AFFO as FFO as Adjusted attributable to common stockholders and unitholders less recurring capital expenditures on consolidated communities that are necessary to help preserve the value of and maintain functionality at our communities.

Management considers AFFO a useful supplemental performance metric for investors as it is more indicative of the Company's operational performance than FFO or FFO as Adjusted. AFFO is not intended to represent cash flow or liquidity for the period, and is only intended to provide an additional measure of our operating performance. The Company believes that net income/(loss) attributable to common stockholders is the most directly comparable GAAP financial measure to AFFO. Management believes that AFFO is a widely recognized measure of the operations of REITs, and presenting AFFO enables investors to assess our performance in comparison to other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not always be comparable to AFFO calculated by other REITs. AFFO should not be considered as an alternative to net income/(loss) (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions. A reconciliation from net income/(loss) attributable to common stockholders to AFFO is provided on Attachment 2.

Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items: The Company defines Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items as Consolidated Interest Coverage Ratio - adjusted for non-recurring items divided by total consolidated interest, excluding the impact of costs associated with debt extinguishment, plus preferred dividends.

Management considers Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lending partners with a widely-used measure of the Company's ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation of the components that comprise Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure.

Consolidated Interest Coverage Ratio - adjusted for non-recurring items: The Company defines Consolidated Interest Coverage Ratio - adjusted for non-recurring items as Consolidated EBITDAre - adjusted for non-recurring items divided by total consolidated interest, excluding the impact of costs associated with debt extinguishment.

Management considers Consolidated Interest Coverage Ratio - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lending partners with a widely-used measure of the Company's ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation of the components that comprise Consolidated Interest Coverage Ratio - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure.

Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items: The Company defines Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items as total consolidated debt net of cash and cash equivalents divided by annualized Consolidated EBITDAre - adjusted for non-recurring items. Consolidated EBITDAre - adjusted for non-recurring items is defined as EBITDAre excluding the impact of income/(loss) from unconsolidated entities, adjustments to reflect the Company's share of EBITDAre of unconsolidated joint ventures and other non-recurring items including, but not limited to casualty-related charges/(recoveries), net of wholly owned communities.

Management considers Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lending partners with a widely-used measure of the Company's ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation between net income/(loss) and Consolidated EBITDAre - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure.

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 rental income. Management considers Controllable Operating Margin a useful metric as it provides investors with an indicator of the Company's ability to limit the growth of expenses that are within the control of the Company.

Development Communities: The Company defines Development Communities as those communities recently developed or under development by the Company, that are currently majority owned by the Company and have not achieved stabilization as of the most recent quarter.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre): The Company defines EBITDAre as net income/(loss) (computed in accordance GAAP), plus interest expense, including costs associated with debt extinguishment, plus real estate depreciation and amortization, plus other depreciation 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 to reflect the Company's share of EBITDAre of unconsolidated joint ventures. The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or Nareit, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the Nareit definition, or that interpret the Nareit definition differently than the Company does. The White Paper on EBITDAre was approved by the Board of Governors of Nareit in September 2017.

Management considers EBITDAre a useful metric for investors as it provides an additional indicator of the Company's ability to incur and service debt, and enables investors to assess our performance against that of its peer REITs. EBITDAre should be considered along with, but not as an alternative to, net income and cash flow as a measure of the Company's activities in accordance with GAAP. EBITDAre does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of funds available to fund our cash needs. A reconciliation between net income/(loss) and EBITDAre is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure.

Effective Blended Lease Rate Growth: The Company defines Effective Blended Lease Rate Growth as the combined proportional growth as a result of Effective New Lease Rate Growth and Effective Renewal Lease Rate Growth. Management considers Effective Blended Lease Rate Growth a useful metric for investors as it assesses combined proportional market-level, new and in-place demand trends.

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 new leases commenced during the current quarter.

Management considers Effective New Lease Rate Growth a useful metric for investors as it assesses market-level new demand trends.

Effective Renewal Lease Rate Growth: The Company defines Effective Renewal Lease Rate Growth as the increase in gross potential rent realized less concessions for the new lease term (current effective rent) versus prior effective rent for the prior lease term on renewed leases commenced during the current quarter.

Management considers Effective Renewal Lease Rate Growth a useful metric for investors as it assesses market-level, in-place demand trends.

Estimated Quarter of Completion: The Company defines Estimated Quarter of Completion of a development or redevelopment project as the date on which construction is expected to be completed, but it does not represent the date of stabilization.

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