UDR : Full Report

Published: 2024-10-24 15:23:04 ET UDR

101 N. Meridian | Tampa, FL

ABOUT THIS REPORT

Our annual ESG Report focuses on the 2023 reporting period (January 1 to December 31, 2023), and unless otherwise stated, metrics or activities discussed relate to that period. The report's Environmental ("E"), Social ("S"), and Governance ("G") (collectively "ESG") disclosures were prepared with reference to the following frameworks:

These internationally recognized ESG frameworks and standards outline the perceived most comprehensive ESG disclosures for the real estate industry. Indexes to GRI, SASB, and TCFD can be found on pages 61, 73, and 77, respectively.

We developed this report using the most reliable information available to us but cannot guarantee this information will not change due to conditions within or beyond our control. We undertake no duty to update any information included herein should a change occur.

Further, certain statements made in the report are "forward looking statements" that by their nature involve estimates, projections, goals, forecasts, and assumptions. These are subject to risks and uncertainties that could result in actual outcomes differing materially from those expressed in a forward-looking statement. These risks are discussed in our Annual Report on Form 10-K and our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission ("SEC") from time to time.

In this report, any use of the terms "material," "materiality," "immaterial," "substantive," "significant" and other similar terminology refers to the expected significance of our potential impact on economic, environmental and social topics or to topics or standards designated as "material" or "substantive" under the GRI standards, SASB standards or TCFD framework. These terms as used in this report are not used, or intended to be construed, as they have been defined by or construed in accordance with the securities laws or any other laws of the United States or any other jurisdiction, or as these terms are used in the context of financial statements and financial reporting.

At UDR, Inc. ("UDR" or the "Company"), we are doing our part to reduce our climate change impact by demand side management measures throughout our business operations and creating sustainable communities. As an environmental steward, we ask you to please consider not printing this report.

UDR 2024 ESG Report | Elevated Excellence

Garrison Square | Boston, MA

WHAT'S NEW / DEVELOPING COMPARED TO LAST YEAR'S REPORT

UDR 2024 ESG Report | Elevated Excellence

GENERAL

ENVIRONMENTAL

o Future utility cost increases and renewable opportunities as "green" infrastructure advances and the energy transition away from fossil-fuel based emissions continues,

o Proposed BPS legislation and electrification requirements in certain markets and states,

o Physical climate risks such as heat stress, water stress, or sea level rise, that could impact the performance and livability of certain of our assets, as well as others, and,

SOCIAL

strategy to fortify our organizational culture including the introduction of quarterly associate pulse surveys and monthly HR newsletters. Based on a recent pulse survey, 78% of our associates believe there is open and honest communication at UDR, exceeding the industry average of 69%.

GOVERNANCE

For any questions about this report, please contact UDR's ESG Team at [email protected] 3

UDR 2024 ESG Report | Elevated Excellence

TABLE OF CONTENTS

Chairman and CEO Message

ESG Measurement and Reporting

About UDR

Our Commitment to the Environment

Scores - Alignments -

Our Commitment to Social Responsibility

Memberships - Awards

UDR's Business Strategy

Our Commitment to Governance

UDR's ESG Methodology

GRI Index

Stakeholder Engagement

SASB Index

Materiality Assessment

TCFD Index

101 N. Meridian | Tampa, FL

UDR 2024 ESG Report | Elevated Excellence

CHAIRMAN & CEO

MESSAGE

(GRI 2-9,2-22,2-29)

We are delighted to share with you our 6th annual ESG report, which highlights UDR's ongoing and robust commitment to being an ESG leader. Realizing tangible progress towards our ESG goals is imperative as successful execution (1) helps to support and enrich our cultural values,

Regarding UDR's strategic vision and future goals, a foundational principle we have adhered to over my tenure as Chairman and CEO is "listen to our associates, listen to our residents, and listen to our investors." This principle is a key driver of our company's culture, and the feedback received from these diverse groups often provides the most actionable information regarding where we are excelling and where we can improve. ESG is no different and I believe our future ESG successes will largely be driven by continuing to listen and then implementing what we learn. Putting this mantra into action over the past year, we,

Continuing to evolve our already strong culture so that it remains adaptable to ever-changing stakeholder wants and needs will remain key to our future success. We are hard at work to ensure that the feedback we receive from all stakeholders is not only heard but acted upon when appropriate.

As outlined in this report, we have continuously improved ESG over time at UDR. Noteworthy recent achievements include:

Estate Industry and named to Newsweek's America's Most Sustainable Companies for the third consecutive year

in 2024.

Collectively, these are significant accomplishments and are emblematic of our ongoing commitment to enhancing our ESG strategy, as ESG itself continues to evolve. My gratitude goes out to the entire UDR team, who showcases innovation and dedication daily to make UDR a better ESG steward.

As you read through our 2024 ESG Report, you will note that many of our ESG goals and disclosures tie to the UN Sustainable Development Goals ("SDGs") as well as the GRI, SASB, and TCFD standards. Each serves as an important framework for decision making and goal setting across E, S, and G. Our aim is to provide full transparency around how UDR's ESG efforts meet external requirements while encouraging our associates and residents to take an active role in achieving our sustainability goals.

Lastly, UDR's capable and diverse Board of Directors ("Board") and executive team remain firmly committed to advancing ESG and continuing to reduce our carbon footprint when economically viable and where appropriate. Our Board remains highly engaged across a variety of E, S, and G topics, receiving annual strategy updates and more specific progress updates at least quarterly. In addition, a portion of our senior corporate and field leaderships' annual compensation remains dependent on whether we meet certain predetermined ESG-related goals. Continuing to foster an environment that encourages honest discussion and seeks to include diverse perspectives is key to our ultimate ESG success, and, as is evident, continues to be stressed at the highest levels.

I sincerely hope you find our 2024 ESG Report insightful and can appreciate the significant contributions UDR associates have made to turn our ESG goals into reality.

Sincerely,

Thomas W. Toomey

Chairman and Chief Executive Officer

ABOUT UDR, INC.

(GRI 2-9,2-22,2-29)

UDR 2024 ESG Report | Elevated Excellence

UDR is a $21(1) billion enterprise value multifamily Real Estate Investment Trust ("REIT") that owns, operates, develops and redevelops a diversified portfolio of apartment homes across top-tier U.S. markets. Founded in 1972, UDR is an S&P 500 company that consistently generates strong total shareholder return ("TSR") through innovation, best-in-class operations, and disciplined capital allocation across a wide range of opportunities. UDR's strategy is founded on diversification across markets, price points, and product types which coupled with our best-in-class operations delivers a full-cycle investment that generates both growth and stability.

Seattle

Portland

San Francisco Bay Area

Monterey Peninsula

Los Angeles

Inland Empire

Orange County

San Diego

Denver

Dallas

Austin

Boston

New York

Philadelphia

Baltimore

Washington, D.C.

Richmond

Nashville

Orlando

Tampa

West Palm

Beach

UDR'S MARKET COMPOSITION(1)

> 5.0% Total NOI

2.5%-5.0% Total NOI

< 2.5% Total NOI

(1) As of July 31, 2024. "NOI" is defined as Net Operating Income.

Source: Company documents.

SCORES

ALIGNMENTS

MEMBERSHIPS

AWARDS

(GRI 2-6)

ALIGNMENTS WITH INDUSTRY CODES + VOLUNTARY BEST PRACTICES

REGIONAL INDUSTRY

ASSOCIATIONS/MEMBERSHIPS

UDR 2024 ESG Report | Elevated Excellence

AWARDS

Most Just Companies in 2024

winner in the Real Estate Industry

- Also recognized for two 2024 Fall Culture Excellence Awards in Employee Appreciation and Professional Development

MEMBERSHIPS

ESG SURVEY SCORES

SUSTAINABLE TECHNOLOGY FUND INVESTMENTS

UDR'S BUSINESS

STRATEGY AND VALUE PROPOSITION(1)

(GRI 2-6)

UDR 2024 ESG Report | Elevated Excellence

UDR's business strategy integrates best-in-class operations, a focus on improving the resident experience, accretive capital allocation, durable and repeatable competitive advantages, a strong and liquid balance sheet, and an innovative culture - all with the overarching goal of remaining a strong corporate citizen. We believe these attributes enhance our same-store, earnings, dividend, and net asset value ("NAV") per share results and growth trajectories, TSR, and the high-quality living experience our residents have come to expect. Evidence for this comes from above-peer-average earnings per share growth in eight of the past eleven years and an annualized TSR compounded annual growth rate ("CAGR") of nearly 9% over the last 20 years.

OPERATING EXCELLENCE

DIFFERENTIATED MARKET SELECTION

REPEATABLE INVESTMENT UPSIDE

WELL-POSITIONED BALANCE SHEET

INNOVATIVE CULTURE THAT EMBRACES CHANGE

ANNUALIZED TSR CAGRS

NAREIT EQUITY INDEX

UDR

14%

13.6%

12%

11.5%

10%

8.5%

7.3%

7.7%

5.9%

10-YEAR

15-YEAR

20-YEAR

UDR'S ESG

METHODOLOGY

(GRI 2-29,3-1; SASB IF-RE-130a.5;IF-RE-140a.4,IF-RE- 450a.2; TCFD 2, 9, 11)

As the ESG landscape has continued to evolve, UDR has sought to continually cultivate a high standard for our ESG goals, progress toward those goals, and report on our progress. Material ESG topics to address are typically identified through stakeholder engagement, evaluating relevant ESG reporting frameworks and well- regarded peer company ESG priorities, and reviewing the current and upcoming regulatory landscape. These topics are ranked by level of importance and included in our annual ESG Report disclosures and described further in the Materiality Assessment section of our annual report. We continue to evaluate our ESG strategy through regular reviews of our ESG processes and initiatives to ensure that they (1) remain aligned with and enhance our strategic and sustainability goals,

Our ESG review process is integrated at the highest level, as UDR's Board oversees and receives reports (including from outside experts) at regularly scheduled meetings with respect to:

UDR 2024 ESG Report | Elevated Excellence

Additional information on stakeholder engagement around ESG is available on Page 11, while a few examples of stakeholder groups and our methods of engagement include:

Continuing to listen to our stakeholders, and act upon the feedback we receive when appropriate, remains a key component to our ongoing success in E, S, and G.

Additional information about stakeholder engagement, identified ESG risks and opportunities, and our commitment to ESG can be found throughout the body of this report and on the ESG section of our website, udr.com/ESG/.

The Quarters at Towson Town Center | Towson, MD

ESG GOVERNANCE

(GRI 2-9,2-13; TCFD 2 AND 8)

Starting in 2021, our Governance Committee Charter was amended to assign the Governance Committee oversight of the Company's ESG disclosures, including any ESG report that is published. Sustainability is incorporated into UDR's overall risk assessments, and the Board provides risk oversight. Continued discussions of ESG during Board meetings have focused on how we can further integrate human capital into our overall business

and updates on our Sustainability Strategy (addressed on pages 19-20), including progress towards our science-based emissions reduction targets and mitigation of climate-related risk. These discussions continue to evolve as we seek to enhance our commitment to ESG and further align the Company's sustainability objectives with those of our stakeholders.

UDR's ESG Committee, made up of senior officers at the Company, sets Company-wide ESG targets, goals, and strategy in conjunction with the Board. Chairman and CEO, Tom Toomey, steers the Committee which approves the ESG strategy, while other members are responsible for implementing and monitoring progress towards meeting ESG targets and goals, evaluating the integrity of the Company's overall ESG reporting processes, and assessing the vision of our sustainability objectives. As part of our EMS process, we conduct third-party and internal assurance testing of the accuracy and completeness of significant ESG metrics. These include GHG emissions, energy usage, water usage, waste diversion, associate compensation, diversity, training, and gender metrics included in this report and our 2024 GRESB survey. As the ESG reporting landscape changes due to expanding regulatory requirements and shifting stakeholder interests, so will the evolution of our ESG control environment.

Continued discussions of ESG during

Board meetings focus on further integrating human capital into our overall business and updates on our Sustainability Strategy, including progress towards our science-based emissions reduction targets and mitigation of climate-related risk.

UDR 2024 ESG Report | Elevated Excellence

101 N. Meridian | Tampa, FL

Disclaimer

UDR Inc. published this content on October 24, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 24, 2024 at 19:22:15.047.