UDR : September 2024 Investor Presentation

UDR

101 N. Meridian

Tampa, FL

INVESTOR

PRESENTATION

September 2024

TABLE OF CONTENTS

3 Recent Updates

7 UDR at a Glance

9 UDR Value Proposition

13 Market and Resident Attributes

15 Strong, Liquid, Flexible Balance Sheet

16 ESG and Sustainability Leadership

18 The Case for Apartment REITs

21 Chelsea

2

New York, NY

RECENT UPDATES - UDR(1)

Key operating metrics are following normal seasonal patterns. 3QTD blended lease rate growth (+2.1%) is ahead of 2H guidance (+0.9%), driven by renewal rate growth of 5% (100bps higher than 1H) and resident turnover 300bps lower y/y. 3Q is forecast to be the lowest y/y SSREV growth quarter in 2024 due to tough y/y comparisons, TTM blends, and occupancy changes from near-historical highs.

Same-Store Operating Trends

4Q 2023

1Q 2024

2Q 2024

3QTD 2024

Average Physical Occupancy

96.9%

97.1%

96.8%

96.2%

Effective Blended Lease Rate Growth

(0.5)%

0.8%

2.4%

2.1%

Blended Lease Rate Growth

2023

2024

Pre-COVID Average (2011-2019)

1Q

2Q

3Q

4Q

(2)

Midpoint would be achieved assuming all other drivers of SSREV growth (i.e., occupancy, other income, and bad debt) also achieve their respective midpoints. Please refer to page 4 for details on SSREV growth assumptions.

3

(3)

Peer group includes AVB, CPT, EQR, ESS, IRT, and MAA.

Source: Company documents.

RECENT UPDATES - 2024 GUIDANCE (AS REPORTED JULY 30, 2024)

SSREV Growth

SSREV Growth, by Region

SSEXP Growth

FFOA Per Share

4

Source: Company documents.

RECENT UPDATES - SECTOR TRENDS(1)

Demographics, affordability, and demand/supply factors continue to support rentership.

Steady Rent-to-Income Ratio ("R/I")

Attractive Relative Affordability

Median resident R/I ratio in the low/mid-20% range

Nearly 60%, or $3,000 per month, less expensive to rent

than own across UDR markets

R/I Ratio

Long-Term Average

% Less Expensive to Rent vs. Own (TTM)

Long-Term Average

25%

-20%

24%

-30%

23%

-40%

22%

-50%

21%

-60%

20%

Mar-18Mar-19Mar-20

Mar-21Mar-22Mar-23Mar-24

Robust Demand

Slowing Future Supply

Above-average population concentrations in the mid-20's to

Multifamily starts have declined materially since mid-2022

early-30's age cohorts support future apartment rental demand

U.S. Population by Age

Average (Ages 15 to 60)

160,000

4,800,000

MultifamilyQuarterly

StartsDevelopment(Units)

120,000

4,400,000

80,000

4,000,000

40,000

3,600,000

0

2019

2020

2021

2022

2023

2024

15

20

25

30

35

40

45

50

55

60

(1) Metrics as of June 30, 2024, unless otherwise noted.

5

Source: Company documents, RealPage, U.S. Census Bureau.

RECENT UPDATES - SUPPLY OUTLOOK

Record levels of new multifamily deliveries expected in 2024, before trending lower towards historical averages by 2H 2025.

National Multifamily Deliveries

UDR Market Multifamily Deliveries

180,000

Units

% of Stock

135,000

Deliveries

90,000

45,000

0

1Q22

4Q22

3Q23

2Q24

1Q25

4Q25

1.0%

70,000

Units

% of Stock

1.0%

0.8%

60,000

0.8%

50,000

0.6%

Deliveries

40,000

0.6%

0.4%

30,000

0.4%

Stockof%

20,000

Stockof%

0.2%

10,000

0.2%

0.0%

0

0.0%

1Q22

4Q22

3Q23

2Q24

1Q25

4Q25

2024 Supply as % of Existing Stock

>250 bps Above Historical Average

20% of UDR NOI

Austin

Dallas

Denver

Nashville

Philadelphia

Seattle

100 to 250 bps Above

Historical Average

45% of UDR NOI

Boston

Los Angeles

Orlando

Portland

Richmond

Tampa

Washington, D.C.

Flat to 100 bps Above

Historical Average

35% of UDR NOI

Baltimore

Monterey Peninsula

New York

Orange County

San Francisco

San Diego

6

Source: Company documents, RealPage, CoStar.

UDR AT A GLANCE(1)(2)

UDR is a full-cycleinvestment that consistently generates strong total shareholder return ("TSR") through innovation, best-in- class operations, and disciplined capital allocation.

52 Year

S&P 500

~60,000

3.8%

Full-Cycle

Continuous

Multifamily

Apartment 21 Markets ~$22B EV

Dividend

History

Investment

Innovation

REIT

Homes

Yield

Outsized Same-Store NOI Growth(3)

Robust Relative TSR

10-Year

3.9%

4.0%

15-Year

4.0%

4.1%

20-Year

3.9%

4.1%

2.5%

3.0%

3.5%

4.0%

Peer Median CAGR

UDR CAGR

10-Year

6.5%

6.9%

15-Year

11.2%

13.3%

20-Year

8.0%

8.5%

4.5%

5.0%

7.0%

9.0%

11.0%

13.0%

NAREIT Equity Index CAGR

UDR CAGR

Sustainable Dividends That Grow Over Time

$1.80

$1.40

$1.00

$0.60 $0.20

207

Consecutive Dividends Paid

$1.70

6.3%

CAGR since 2010

$0.72

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

(1)

As of August 31, 2024, except otherwise noted.

7

(2)

Dividend Yield is based on UDR's 2024 annualized dividend of $1.70 per share.

(3)

Peer group includes AVB, CPT, EQR, ESS, IRT, and MAA; 2Q 2020 through 4Q 2023 UDR same-store NOI results have been adjusted where appropriate to reflect concessions on a straightline basis for peer comparability.

Source: Company and peer documents, Nareit.

UDR AT A GLANCE - DIVERSIFIED PORTFOLIO COMPOSITION

UDR is diversified across markets and price points to generate robust growth with less risk.

Market Mix

Price Point and Location(1) Within Market

Northeast/Mid-Atlantic:

40% of NOI

West Coast:

35% of NOI

Sunbelt:

25% of NOI

80%

Less

UDR

Peer Average

60%

Concentration

Risk

40%

More Stability

20%

Portfolio-Wide Rental Rate

% of SS Revenue in Five

Differential(2,3)

Largest Markets(2)

A-Quality

44%

Coastal A

Coastal B

53%

47%

Urban

31%

Coastal Urban Coastal Suburb

61%

39%

B-Quality

56%

Sunbelt A

Sunbelt B

66%

34%

Suburban

69%

Sunbelt Urban Sunbelt Suburb

9%91%

(2)

Data as of June 30, 2024. Comparative top-5 markets for peer REITs are defined similarly to UDR's market definitions.

8

(3)

Rental rate differential equals the percentage difference between 1st and 3rd quartile rent levels across each REIT's portfolio.

Source: Company and peer documents, Nareit.

UDR VALUE PROPOSITION

Durable and Repeatable Competitive Advantages

Innovation

Operations

Differentiated

Market Selection

-

Self-service and improved

-

Predictive analytics and

resident experience

qualitative analyses to

-

Expand margins and

help identify investment/

divestment markets

lessen expense growth

-

$110M incremental NOI

-

Benefits our acquisition

yield expansion

captured or identified

Repeatable

Investment

Upside

Long-Term TSR Outperformance

Controllable Operating Margin ("COM") Expansion

Frequency that UDR's Rolling 5-year Annualized TSR(1) Outperforms Index

Controllable Operating Margin vs. Avg. Monthly

84%

Rent(2) (TTM through 2Q24)

Last 5 Years

Last 10 Years

80%

Margin

83%

~200bps COM advantage

68%

72%

82%

Equates to ~$30M in

60%

higher annualized NOI.

62%

Operating

57%

81%

Peer Avg.

40%

80%

20%

Controllable

79%

78%

0%

TTM

77%

UDR vs. NAREIT

UDR vs. NAREIT

UDR vs. NAREIT

UDR vs. NAREIT

$1,500

$2,000

$2,500

$3,000

Apartment Index

Equity Index

Apartment Index

Equity Index

Average Monthly Rent Per Apartment Home

(1) Data through July 31, 2024.

9

(2) Based on disclosures across the peer group. Average Monthly Rent is defined as average monthly rental rates for EQR, ESS, IRT, and MAA and is defined as average monthly revenue per occupied home for AVB, CPT, and UDR.

Source: Company documents.

INNOVATION = REPEATABLE, CONSISTENT VALUE CREATION

UDR innovation initiatives have consistently driven high-single-digit y/y growth in other income, resulting in (a) approximately $30M of incremental run-rateNOI since 2018, equating to $600M of value creation,(1) and (b) an approximate 200 basis point controllable margin advantage versus peers. Current and identified future initiatives should allow UDR to sustain high- single-digit other income growth.

$110M NOI ($0.30/share or 10% upside) from Identified Value Creation

2018-2023:

2024 Target:

Identified (2025+):

$30M

$10M

$70M

Legacy Innovation

Ancillary Income: Parking, Package Lockers, Pet Fees, Short-Term Rentals

Site-Level Efficiencies: Reduce Controllable Expenses, Unmanned Communities, Group Purchasing

Foundational Technologies: SmartHome Tech, Data Hub, CRM, AI Chatbot, Self-GuidedTours, Resident App, Maintenance Tech, Spatial Analytics, Robotics

Pricing Enhancements: Unit-Level and Amenity Pricing Reduce Friction: Streamlined Resident Move-In Process

Major Strategic Initiatives (Examples)

Community WiFi ($10-$15M NOI 2025+): Seamless access for residents; supports self- service model; building block to reduce emissions

Customer Experience ($10-$25M NOI 2025+): Leverage data and AI to orchestrate interactions and decisions; leads to higher satisfaction, increased lifetime value of resident, higher retention, fewer vacant days, improved pricing, margin expansion

Bad Debt ($10-$20M NOI 2025+): AI-poweredfraud screening (proof of income, ID verification, pattern recognition) = higher collections, reduced eviction and turnover costs, lower vacancy loss

(1) Calculated based on an applied cap rate of 5.0%.

10

Source: Company documents.

Disclaimer

UDR Inc. published this content on 04 September 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on September 04, 2024 at 22:49:41 UTC.