UDR, Inc. (the "Company") (NYSE:UDR), announced today its first quarter 2023 results. Net Income, Funds from Operations ("FFO"), FFO as Adjusted ("FFOA"), and Adjusted FFO ("AFFO") per diluted share for the quarter ended March 31, 2023 are detailed below.

	Quarter Ended March 31
Metric	1Q 2023 Actual		1Q 2023 Guidance	1Q 2022 Actual		$ Change vs. Prior Year Period		% Change vs. Prior Year Period
Net Income per diluted share	$	0.09	$0.10 to $0.12	$	0.04	$	0.05	125	%
FFO per diluted share	$	0.59	$0.59 to $0.61	$	0.54	$	0.05	9	%
FFOA per diluted share	$	0.60	$0.59 to $0.61	$	0.55	$	0.05	9	%
AFFO per diluted share	$	0.57	$0.56 to $0.58	$	0.51	$	0.06	12	%

Same-Store ("SS") results for the first quarter 2023 versus the first quarter 2022 and the fourth quarter 2022 are summarized below.

	Concessions reflected on a straight-line basis:				Concessions reflected on a cash basis:
SS Growth / (Decline)	Year-Over-Year ("YOY"): 1Q 2023 vs. 1Q 2022		Sequential: 1Q 2023 vs. 4Q 2022		YOY: 1Q 2023 vs. 1Q 2022		Sequential: 1Q 2023 vs. 4Q 2022
Revenue	9.6	%	(0.3	)%	8.2	%	0.0	%
Expense	5.1	%	0.4	%	5.1	%	0.4	%
Net Operating Income ("NOI")	11.7	%	(0.6	)%	9.5	%	(0.2	)%

During the first quarter, the Company:
- Completed construction of The MO, a $145.0 million, 300-home apartment community in Washington, D.C.
- Achieved stabilization on two development communities; Vitruvian West Phase 3, a $74.0 million, 405-home apartment community in Dallas, TX; and The George Apartments, a $68.0 million, 200-home apartment community in Philadelphia, PA.

"Our first quarter results, including 9 percent FFOA per share growth and nearly 12 percent same-store NOI growth over the prior year period, demonstrate the strength of our strategy and platform," said Tom Toomey, UDR's Chairman and CEO. "We are optimistic on the growth trajectory and resiliency of our business moving forward and continue to focus on what we can control: disciplined capital allocation to opportunistically create shareholder value, new and innovative initiatives to drive further margin expansion, and an investment-grade balance sheet with well-laddered maturities and plentiful liquidity."

Outlook

For the full-year 2023, the Company has reaffirmed its prior FFOA per share, AFFO per share, and same-store growth guidance ranges. For the second quarter 2023, the Company has established the following guidance ranges⁽¹⁾:

	2Q 2023 Outlook	1Q 2023 Actual			Full-Year 2023 Outlook	Full-Year 2023 Midpoint
Net Income per diluted share	$0.11 to $0.13	$	0.09		$0.47 to $0.55	$	0.51
FFO per diluted share	$0.60 to $0.62	$	0.59		$2.44 to $2.52	$	2.48
FFOA per diluted share	$0.60 to $0.62	$	0.60		$2.45 to $2.53	$	2.49
AFFO per diluted share	$0.54 to $0.56	$	0.57		$2.22 to $2.30	$	2.26
YOY Growth: concessions reflected on a straight-line basis:
SS Revenue	N/A		9.6	%	5.75% to 7.75%		6.75	%
SS Expense	N/A		5.1	%	4.0% to 5.5%		4.75	%
SS NOI	N/A		11.7	%	6.25% to 8.75%		7.50	%
YOY Growth: concessions reflected on a cash basis:
SS Revenue	N/A		8.2	%	5.5% to 7.5%		6.50	%
SS NOI	N/A		9.5	%	6.0% to 8.5%		7.25	%

⁽¹⁾

Additional assumptions for the Company's second quarter and full-year 2023 outlook can be found on Attachment 13 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 14(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 14(A) through 14(D), "Definitions and Reconciliations," of the Company's related quarterly Supplement.

First Quarter 2023 Operating Results

In the first quarter, total revenue increased by $42.3 million YOY, or 11.8 percent, to $399.5 million. This increase was primarily attributable to growth in revenue from Same-Store communities and past accretive external growth investments.

"Stable demand for UDR apartment homes enabled us to achieve 3.5% blended lease rate growth during the first quarter, which was in-line with our expectations," said Mike Lacy, UDR's Senior Vice President of Operations. "Resident rent-to-income levels across our portfolio remain in-line with historical norms, and the relative affordability of apartments versus single family housing is as favorable as it has been at nearly any point over the past 20 years."

For the first quarter 2023, the Company recorded a residential bad debt reserve of $6.1 million, including $0.5 million for the Company's share from unconsolidated joint ventures, a decrease of $2.6 million versus the Company's bad debt reserve as of the end of the fourth quarter 2022. This compares to a quarter-end accounts receivable balance of $16.9 million, a decrease of $3.7 million versus the Company's accounts receivable balance as of the end of the fourth quarter 2022.

In the tables below, the Company has presented YOY and 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 2023 versus First Quarter 2022

Region	Revenue Growth		Expense Growth		NOI Growth		% of Same-Store Portfolio⁽¹⁾		Physical Occupancy⁽²⁾		YOY Change in Occupancy
West	6.5	%	2.1	%	8.0	%	32.1	%	96.4	%	(0.6	)%
Mid-Atlantic	6.3	%	2.8	%	7.9	%	21.2	%	96.6	%	(0.5	)%
Northeast	8.8	%	4.3	%	11.3	%	17.5	%	97.1	%	(0.3	)%
Southeast	12.8	%	9.8	%	14.3	%	13.8	%	96.1	%	(1.1	)%
Southwest	10.6	%	12.3	%	9.6	%	8.6	%	96.6	%	(0.5	)%
Other Markets	6.7	%	3.0	%	8.2	%	6.8	%	97.0	%	0.0	%
Total (Cash)	8.2	%	5.1	%	9.5	%	100.0	%	96.6	%	(0.5	)%
Total (Straight-Line)	9.6	%	5.1	%	11.7	%	-		-		-

⁽¹⁾		Based on 1Q 2023 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.

Summary of Same-Store Results in First Quarter 2023 versus Fourth Quarter 2022

Region	Revenue Growth / (Decline)		Expense Growth / (Decline)		NOI Growth / (Decline)		% of Same-Store Portfolio⁽¹⁾		Physical Occupancy⁽²⁾		Sequential Change in Occupancy
West	0.2	%	(4.6	)%	1.8	%	32.1	%	96.4	%	(0.1	)%
Mid-Atlantic	0.4	%	(0.6	)%	0.8	%	21.2	%	96.6	%	(0.3	)%
Northeast	0.1	%	5.0	%	(2.3	)%	17.5	%	97.1	%	0.0	%
Southeast	(0.3	)%	3.1	%	(1.7	)%	13.8	%	96.1	%	(0.5	)%
Southwest	(0.7	)%	5.7	%	(4.2	)%	8.6	%	96.6	%	(0.2	)%
Other Markets	(1.3	)%	(6.6	)%	0.8	%	6.8	%	97.0	%	0.4	%
Total (Cash)	0.0	%	0.4	%	(0.2	)%	100.0	%	96.6	%	(0.1	)%
Total (Straight-Line)	(0.3	)%	0.4	%	(0.6	)%	-		-		-

⁽¹⁾		Based on 1Q 2023 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 completed construction of The MO, a $145.0 million, 300-home apartment community in Washington, D.C. Additionally, the Company achieved stabilization on two development communities; Vitruvian West Phase 3, a $74.0 million, 405-home apartment community in Dallas, TX; and The George Apartments, a $68.0 million, 200-home apartment community in Philadelphia, PA.

At the end of the first quarter, the Company's development pipeline totaled $187.5 million and was 41 percent funded. The Company's active development pipeline includes two communities, one each in the Addison submarket of Dallas, TX, and Tampa, FL, for a combined total of 415 apartment homes.

At the end of the first quarter, the Company's redevelopment pipeline of 1,623 apartment homes, which includes a densification project that features the addition of 30 new apartment homes at one community, totaled $88.6 million and was 35 percent funded.

Developer Capital Program ("DCP") Portfolio

At the end of the first quarter, the Company's commitments under its DCP platform totaled $479.7 million with a weighted average return rate of 9.7 percent and a weighted average estimated remaining term of 3.5 years.

Capital Markets and Balance Sheet Activity

"Our balance sheet remains in excellent shape with net Debt-to-EBITDAre at 5.7x and below pre-COVID levels, minimal committed forward funding obligations, strong next 3-year liquidity, and only 2 percent of total debt scheduled to mature through 2024, after excluding amounts on our commercial paper program," said Joe Fisher, UDR's President and Chief Financial Officer.

The Company's total indebtedness as of March 31, 2023 was $5.6 billion with no remaining consolidated maturities until 2024, excluding principal amortization and amounts on the Company's commercial paper program. As of March 31, 2023, the Company had $957.4 million of liquidity through a combination of cash and undrawn capacity on its credit facilities. Please see Attachment 13 of the Company's related quarterly Supplement for additional details on projected capital sources and uses.

In the table below, the Company has presented select balance sheet metrics for the quarter ended March 31, 2023 and the comparable prior year period.

	Quarter Ended March 31
Balance Sheet Metric	1Q 2023		1Q 2022		Change
Weighted Average Interest Rate	3.25	%	2.80	%	0.45	%
Weighted Average Years to Maturity⁽¹⁾	6.3		7.4		(1.1	)
Consolidated Fixed Charge Coverage Ratio	5.2	x	5.3	x	(0.1	)x
Consolidated Debt as a percentage of Total Assets	33.0	%	34.3	%	(1.3	)%
Consolidated Net Debt-to-EBITDAre	5.7	x	6.4	x	(0.7	)x

⁽¹⁾

If the Company's commercial paper balance was refinanced using its line of credit, the weighted average years to maturity would have been 6.5 years without extensions and 6.6 years with extensions for 1Q 2023 and 7.6 years with and without extensions for 1Q 2022.

ESG

As previously announced, during the quarter, the Company was named to Newsweek's annual list of America's Most Responsible Companies for the second consecutive year. Additionally, the Company was named to the list of America's Most JUST Companies by JUST Capital for the fifth consecutive year. These distinctions reflect the Company's comprehensive ESG program, innovative and adaptive culture, and commitment to corporate responsibility.

Dividend

As previously announced, the Company's Board of Directors declared a regular quarterly dividend on its common stock for the first quarter 2023 in the amount of $0.42 per share, a 10.5 percent increase over the comparable period in 2022. The dividend will be paid in cash on May 1, 2023 to UDR common shareholders of record as of April 10, 2023. The first quarter 2023 dividend will represent the 202^nd 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.

Attachment 14(A)

UDR, Inc.

Definitions and Reconciliations

March 31, 2023

(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 lenders 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 lenders 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 lenders 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 with 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.

Attachment 14(B)

UDR, Inc.

Definitions and Reconciliations

March 31, 2023

(Unaudited)

Funds from Operations as Adjusted ("FFO as Adjusted") attributable to common stockholders and unitholders: The Company defines FFO as Adjusted attributable to common stockholders and unitholders as FFO excluding the impact of other non-comparable items including, but not limited to, acquisition-related costs, prepayment costs/benefits associated with early debt retirement, impairment write-downs or gains and losses on sales of real estate or other assets incidental to the main business of the Company and income taxes directly associated with those gains and losses, casualty-related expenses and recoveries, severance costs and legal and other costs.

Management believes that FFO as Adjusted is useful supplemental information regarding our operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. FFO as Adjusted 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 FFO as Adjusted. However, other REITs may use different methodologies for calculating FFO as Adjusted or similar FFO measures and, accordingly, our FFO as Adjusted may not always be comparable to FFO as Adjusted or similar FFO measures calculated by other REITs. FFO as Adjusted should not be considered as an alternative to net income (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. A reconciliation from net income attributable to common stockholders to FFO as Adjusted is provided on Attachment 2.

Funds from Operations ("FFO") attributable to common stockholders and unitholders: The Company defines FFO attributable to common stockholders and unitholders as net income/(loss) attributable to common stockholders (computed in accordance with GAAP), excluding impairment write-downs of depreciable real estate related to the main business of the Company or of investments in non-consolidated investees that are directly attributable to decreases in the fair value of depreciable real estate held by the investee, gains and losses from sales of depreciable real estate related to the main business of the Company and income taxes directly associated with those gains and losses, plus real estate depreciation and amortization, and after adjustments for noncontrolling interests, and the Company's share of unconsolidated partnerships and joint ventures. This definition conforms with the National Association of Real Estate Investment Trust's definition issued in April 2002 and 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 FFO in evaluating property acquisitions and its operating performance and believes that FFO 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. FFO 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 from net income/(loss) attributable to common stockholders to FFO is provided on Attachment 2.

Held For Disposition Communities: The Company defines Held for Disposition Communities as those communities that were held for sale as of the end of the most recent quarter.

Joint Venture Reconciliation at UDR's weighted average ownership interest:

In thousands		1Q 2023
Income/(loss) from unconsolidated entities	$	9,707
Management fee		610
Interest expense		4,031
Depreciation		7,485
General and administrative		60
Developer Capital Program (excludes Menifee and Riverside)		(10,122	)
Other (income)/expense		88
Realized (gain)/loss on real estate technology investments, net of tax		520
Unrealized (gain)/loss on real estate technology investments, net of tax		(1,455	)
Total Joint Venture NOI at UDR's Ownership Interest	$	10,924

Net Operating Income ("NOI"): The Company defines NOI as rental income less direct property rental expenses. Rental income represents gross market rent and other revenues less adjustments for concessions, vacancy loss and bad debt. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI is property management expense, which is calculated as 3.25% of property revenue, and land rent. Property management expense covers costs directly related to consolidated property operations, inclusive of corporate management, regional supervision, accounting and other costs.

Management considers NOI a useful metric for investors as it is a more meaningful representation of a community's continuing operating performance than net income as it is prior to corporate-level expense allocations, general and administrative costs, capital structure and depreciation and amortization and is a widely used input, along with capitalization rates, in the determination of real estate valuations. A reconciliation from net income/(loss) attributable to UDR, Inc. to NOI is provided below.

In thousands		1Q 2023			4Q 2022			3Q 2022			2Q 2022			1Q 2022
Net income/(loss) attributable to UDR, Inc.	$	30,964		$	44,530		$	23,605		$	5,084		$	13,705
Property management		12,945			12,949			12,675			11,952			11,576
Other operating expenses		3,032			4,008			3,746			5,027			4,712
Real estate depreciation and amortization		169,300			167,241			166,781			167,584			163,622
Interest expense		43,742			43,247			39,905			36,832			35,916
Casualty-related charges/(recoveries), net		4,156			8,523			901			1,074			(765	)
General and administrative		17,480			16,811			15,840			16,585			14,908
Tax provision/(benefit), net		234			(683	)		377			312			343
(Income)/loss from unconsolidated entities		(9,707	)		(761	)		(10,003	)		11,229			(5,412	)
Interest income and other (income)/expense, net		(1,010	)		(1	)		7,495			(3,001	)		2,440
Joint venture management and other fees		(1,242	)		(1,244	)		(1,274	)		(1,419	)		(1,085	)
Other depreciation and amortization		3,649			4,823			3,430			3,016			3,075
(Gain)/loss on sale of real estate owned		(1	)		(25,494	)		-			-			-
Net income/(loss) attributable to noncontrolling interests		1,961			2,937			1,540			280			898
Total consolidated NOI	$	275,503		$	276,886		$	265,018		$	254,555		$	243,933

Attachment 14(C)

UDR, Inc.

Definitions and Reconciliations

March 31, 2023

(Unaudited)

NOI Enhancing Capital Expenditures ("Cap Ex"): The Company defines NOI Enhancing Capital Expenditures as expenditures that result in increased income generation or decreased expense growth over time.

Management considers NOI Enhancing Capital Expenditures a useful metric for investors as it quantifies the amount of capital expenditures that are expected to grow, not just maintain, revenues or to decrease expenses.

Non-Mature Communities: The Company defines Non-Mature Communities as those communities that have not met the criteria to be included in same-store communities.

Non-Residential / Other: The Company defines Non-Residential / Other as non-apartment components of mixed-use properties, land held, properties being prepared for redevelopment and properties where a material change in home count has occurred.

Other Markets: The Company defines Other Markets as the accumulation of individual markets where it operates less than 1,000 Same-Store homes. Management considers Other Markets a useful metric as the operating results for the individual markets are not representative of the fundamentals for those markets as a whole.

Physical Occupancy: The Company defines Physical Occupancy as the number of occupied homes divided by the total homes available at a community.

QTD Same-Store Communities: The Company defines QTD Same-Store Communities as those communities Stabilized for five full consecutive quarters. These communities were owned and had stabilized 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.

Recurring Capital Expenditures: The Company defines Recurring Capital Expenditures as expenditures that are necessary to help preserve the value of and maintain functionality at its communities.

Redevelopment Communities: The Company generally defines Redevelopment Communities as those communities where substantial redevelopment is in progress. Based upon the level of material impact the redevelopment has on the community (operations, occupancy levels, and future rental rates), the community may or may not maintain Stabilization. As such, for each redevelopment, the Company assesses whether the community remains in Same-Store.

Same-Store Revenue with Concessions on a Cash Basis: Same-Store Revenue with Concessions on a Cash Basis is considered by the Company to be a supplemental measure to rental income on a straight-line basis which allows investors to evaluate the impact of both current and historical concessions and to more readily enable comparisons to revenue as reported by its peer REITs. In addition, Same-Store Revenue with Concessions on a Cash Basis allows an investor to understand the historical trends in cash concessions.

A reconciliation between Same-Store Revenue with Concessions on a Cash Basis to Same-Store Revenue on a straight-line basis (inclusive of the impact to Same-Store NOI) is provided below:

		1Q 23			1Q 22			1Q 23			4Q 22
Revenue (Cash basis)	$	379,379		$	350,768		$	379,379		$	379,517
Concessions granted/(amortized), net		60			(4,532	)		60			1,098
Revenue (Straight-line basis)	$	379,439		$	346,236		$	379,439		$	380,615

% change - Same-Store Revenue with Concessions on a Cash basis:		8.2	%					0.0	%
% change - Same-Store Revenue with Concessions on a Straight-line basis:		9.6	%					-0.3	%

% change - Same-Store NOI with Concessions on a Cash basis:		9.5	%					-0.2	%
% change - Same-Store NOI with Concessions on a Straight-line basis:		11.7	%					-0.6	%

Sold Communities: The Company defines Sold Communities as those communities that were disposed of prior to the end of the most recent quarter.

Stabilization/Stabilized: The Company defines Stabilization/Stabilized as when a community's occupancy reaches 90% or above for at least three consecutive months.

Stabilized, Non-Mature Communities: The Company defines Stabilized, Non-Mature Communities as those communities that have reached Stabilization but are not yet in the same-store portfolio.

Total Revenue per Occupied Home: The Company defines Total Revenue per Occupied Home as rental and other revenues with concessions reported on a Cash Basis, divided by the product of occupancy and the number of apartment homes. A reconciliation between Same-Store Revenue with Concessions on a Cash Basis to Same-Store Revenue on a straight-line basis is provided above.

Management considers Total Revenue per Occupied Home a useful metric for investors as it serves as a proxy for portfolio quality, both geographic and physical.

TRS: The Company's taxable REIT subsidiaries ("TRS") focus on making investments and providing services that are otherwise not allowed to be made or provided by a REIT.

YTD Same-Store Communities: The Company defines YTD Same-Store Communities as those communities Stabilized for two full consecutive calendar years. These communities were owned and had stabilized 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.

Conference Call and Webcast Information

UDR will host a webcast and conference call at 12:00 p.m. Eastern Time on April 27, 2023, to discuss first quarter results as well as high-level views for 2023. 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 877-423-9813 for domestic and 201-689-8573 for international. A passcode is not necessary.

Given a high volume of conference calls occurring during this time of year, delays are anticipated when connecting to the live call. As a result, stakeholders and interested parties are encouraged to utilize the Company's webcast link for its earnings results discussion.

A replay of the conference call will be available through May 27, 2023, by dialing 844-512-2921 for domestic and 412-317-6671 for international and entering the confirmation number, 13737748, 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 related quarterly Supplement will be available on the Company's website at ir.udr.com.

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, general market and economic conditions, unfavorable changes in the apartment market and economic conditions that could adversely affect occupancy levels and rental rates, including as a result of COVID-19, the impact of inflation/deflation on rental rates and property operating expenses, the availability of capital and the stability of the capital markets, rising interest rates, 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 or at expected rent and occupancy levels, changes in job growth, home affordability and demand/supply ratio for multifamily housing, development and construction risks that may impact profitability, risks that joint ventures with third parties and DCP investments do not perform as expected, the failure of automation or technology to help grow 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 March 31, 2023, UDR owned or had an ownership position in 58,411 apartment homes including 415 homes under development. For over 50 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
	March 31,
In thousands, except per share amounts	2023			2022

REVENUES:
Rental income ⁽²⁾	$	398,307		$	356,181
Joint venture management and other fees		1,242			1,085
Total revenues		399,549			357,266

OPERATING EXPENSES:
Property operating and maintenance		64,834			58,484
Real estate taxes and insurance		57,970			53,764
Property management		12,945			11,576
Other operating expenses		3,032			4,712
Real estate depreciation and amortization		169,300			163,622
General and administrative		17,480			14,908
Casualty-related charges/(recoveries), net		4,156			(765	)
Other depreciation and amortization		3,649			3,075
Total operating expenses		333,366			309,376

Gain/(loss) on sale of real estate owned		1			-
Operating income		66,184			47,890

Income/(loss) from unconsolidated entities⁽²⁾		9,707			5,412
Interest expense		(43,742	)		(35,916	)
Interest income and other income/(expense), net		1,010			(2,440	)

Income/(loss) before income taxes		33,159			14,946
Tax (provision)/benefit, net		(234	)		(343	)

Net Income/(loss)		32,925			14,603
Net (income)/loss attributable to redeemable noncontrolling interests in the OP and DownREIT Partnership		(1,953	)		(879	)
Net (income)/loss attributable to noncontrolling interests		(8	)		(19	)

Net income/(loss) attributable to UDR, Inc.		30,964			13,705
Distributions to preferred stockholders - Series E (Convertible)		(1,183	)		(1,092	)

Net income/(loss) attributable to common stockholders	$	29,781		$	12,613


Income/(loss) per weighted average common share - basic:	$	0.09		$	0.04
Income/(loss) per weighted average common share - diluted:	$	0.09		$	0.04

Common distributions declared per share	$	0.42		$	0.38

Weighted average number of common shares outstanding - basic		328,789			318,009
Weighted average number of common shares outstanding - diluted		329,421			319,680

⁽¹⁾		See Attachment 14 for definitions and other terms.
⁽²⁾		During the three months ended March 31, 2023, UDR decreased its residential reserve to $6.1 million, including $0.5 million for UDR's share from unconsolidated joint ventures, which compares to a combined quarter-end accounts receivable balance of $16.9 million. The remaining unreserved amount is based on probability of collection.

Attachment 2

UDR, Inc.
Funds From Operations
(Unaudited) ⁽¹⁾

	Three Months Ended
	March 31,
In thousands, except per share and unit amounts	2023			2022

Net income/(loss) attributable to common stockholders	$	29,781		$	12,613

Real estate depreciation and amortization		169,300			163,622
Noncontrolling interests		1,961			898
Real estate depreciation and amortization on unconsolidated joint ventures		7,485			7,624
Net gain on the sale of depreciable real estate owned, net of tax		(1	)		-
Funds from operations ("FFO") attributable to common stockholders and unitholders, basic	$	208,526		$	184,757

Distributions to preferred stockholders - Series E (Convertible)⁽²⁾		1,183			1,092

FFO attributable to common stockholders and unitholders, diluted	$	209,709		$	185,849

FFO per weighted average common share and unit, basic	$	0.60		$	0.54
FFO per weighted average common share and unit, diluted	$	0.59		$	0.54

Weighted average number of common shares and OP/DownREIT Units outstanding, basic		350,112			339,543
Weighted average number of common shares, OP/DownREIT Units, and common stock equivalents outstanding, diluted		353,653			344,132

Impact of adjustments to FFO:
Variable upside participation on DCP, net	$	-		$	(10,622	)
Legal and other		(1,258	)		774
Realized (gain)/loss on real estate technology investments, net of tax		595			(2,238	)
Unrealized (gain)/loss on real estate technology investments, net of tax		(858	)		15,631
Casualty-related charges/(recoveries), net		4,156			(765	)
Total impact of adjustments to FFO	$	2,635		$	2,780

FFO as Adjusted attributable to common stockholders and unitholders, diluted	$	212,344		$	188,629

FFO as Adjusted per weighted average common share and unit, diluted	$	0.60		$	0.55

Recurring capital expenditures		(12,299	)		(11,804	)
AFFO attributable to common stockholders and unitholders, diluted	$	200,045		$	176,825

AFFO per weighted average common share and unit, diluted	$	0.57		$	0.51

⁽¹⁾		See Attachment 14 for definitions and other terms.
⁽²⁾		Series E cumulative convertible preferred shares are dilutive for purposes of calculating FFO per share for the three months ended March 31, 2023 and March 31, 2022. Consequently, distributions to Series E cumulative convertible preferred stockholders are added to FFO and the weighted average number of Series E cumulative convertible preferred shares are included in the denominator when calculating FFO per common share and unit, diluted.

Attachment 3

UDR, Inc.
Consolidated Balance Sheets
(Unaudited) ⁽¹⁾

	March 31,			December 31,
In thousands, except share and per share amounts	2023			2022


ASSETS

Real estate owned:
Real estate held for investment	$	15,565,915		$	15,365,928
Less: accumulated depreciation		(5,926,651	)		(5,762,205	)
Real estate held for investment, net		9,639,264			9,603,723
Real estate under development
(net of accumulated depreciation of $0 and $296)		76,455			189,809
Real estate held for disposition
(net of accumulated depreciation of $0 and $0)		-			14,039
Total real estate owned, net of accumulated depreciation		9,715,719			9,807,571

Cash and cash equivalents		1,172			1,193
Restricted cash		28,038			29,001
Notes receivable, net		71,125			54,707
Investment in and advances to unconsolidated joint ventures, net		751,387			754,446
Operating lease right-of-use assets		193,230			194,081
Other assets		207,029			197,471
Total assets	$	10,967,700		$	11,038,470

LIABILITIES AND EQUITY

Liabilities:
Secured debt	$	1,051,000		$	1,052,281
Unsecured debt		4,525,963			4,435,022
Operating lease liabilities		188,402			189,238
Real estate taxes payable		35,052			37,681
Accrued interest payable		26,580			46,671
Security deposits and prepaid rent		57,738			51,999
Distributions payable		148,409			134,213
Accounts payable, accrued expenses, and other liabilities		111,795			153,220
Total liabilities		6,144,939			6,100,325

Redeemable noncontrolling interests in the OP and DownREIT Partnership		901,652			839,850

Equity:
Preferred stock, no par value; 50,000,000 shares authorized at March 31, 2023 and December 31, 2022:
2,686,308 shares of 8.00% Series E Cumulative Convertible issued
and outstanding (2,686,308 shares at December 31, 2022)		44,614			44,614
12,090,558 shares of Series F outstanding (12,100,514 shares at December 31, 2022)		1			1
Common stock, $0.01 par value; 450,000,000 shares authorized at March 31, 2023 and December 31, 2022:
329,173,125 shares issued and outstanding (328,993,088 shares at December 31, 2022)		3,292			3,290
Additional paid-in capital		7,494,042			7,493,423
Distributions in excess of net income		(3,627,873	)		(3,451,587	)
Accumulated other comprehensive income/(loss), net		6,823			8,344
Total stockholders' equity		3,920,899			4,098,085
Noncontrolling interests		210			210
Total equity		3,921,109			4,098,295
Total liabilities and equity	$	10,967,700		$	11,038,470

⁽¹⁾

See Attachment 14 for definitions and other terms.

Attachment 4(C)

UDR, Inc.
Selected Financial Information
(Dollars in Thousands)
(Unaudited) ⁽¹⁾

									Quarter Ended
Coverage Ratios									March 31, 2023
Net income/(loss)									$	32,925
Adjustments:
Interest expense, including debt extinguishment and other associated costs										43,742
Real estate depreciation and amortization										169,300
Other depreciation and amortization										3,649
Tax provision/(benefit), net										234
Net (gain)/loss on the sale of depreciable real estate owned										(1	)
Adjustments to reflect the Company's share of EBITDAre of unconsolidated joint ventures										11,516
EBITDAre									$	261,365
Casualty-related charges/(recoveries), net										4,156
Legal and other costs										(1,258	)
Unrealized (gain)/loss on real estate technology investments										597
Realized (gain)/loss on real estate technology investments										75
(Income)/loss from unconsolidated entities										(9,707	)
Adjustments to reflect the Company's share of EBITDAre of unconsolidated joint ventures										(11,516	)
Management fee expense on unconsolidated joint ventures										(610	)
Consolidated EBITDAre - adjusted for non-recurring items									$	243,102
Annualized consolidated EBITDAre - adjusted for non-recurring items									$	972,408
Interest expense, including debt extinguishment and other associated costs										43,742
Capitalized interest expense										2,242
Total interest									$	45,984
Preferred dividends									$	1,183
Total debt									$	5,576,963
Cash										(1,172	)
Net debt									$	5,575,791
Consolidated Interest Coverage Ratio - adjusted for non-recurring items										5.3x
Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items										5.2x
Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items										5.7x


Debt Covenant Overview

Unsecured Line of Credit Covenants ⁽²⁾				Required		Actual			Compliance
Maximum Leverage Ratio				≤60.0%			30.4%	⁽²⁾	Yes
Minimum Fixed Charge Coverage Ratio				≥1.5x			5.3x		Yes
Maximum Secured Debt Ratio				≤40.0%			8.9	%	Yes
Minimum Unencumbered Pool Leverage Ratio				≥150.0%			380.8	%	Yes

Senior Unsecured Note Covenants ⁽³⁾				Required		Actual			Compliance
Debt as a percentage of Total Assets				≤65.0%			33.1%	⁽³⁾	Yes
Consolidated Income Available for Debt Service to Annual Service Charge				≥1.5x			5.6x		Yes
Secured Debt as a percentage of Total Assets				≤40.0%			6.2	%	Yes
Total Unencumbered Assets to Unsecured Debt				≥150.0%			317.9	%	Yes

Securities Ratings				Debt		Outlook			Commercial Paper
Moody's Investors Service				Baa1		Stable			P-2
S&P Global Ratings				BBB+		Stable			A-2

						Gross			% of
	Number of	1Q 2023 NOI ⁽¹⁾				Carrying Value			Total Gross
Asset Summary	Homes	($000s)		% of NOI		($000s)			Carrying Value

Unencumbered assets	47,637	$	243,511	88.4	%	$	13,888,429			88.8	%
Encumbered assets	7,522		31,992	11.6	%		1,753,941			11.2	%
	55,159	$	275,503	100.0	%	$	15,642,370			100.0	%

⁽¹⁾

See Attachment 14 for definitions and other terms.

⁽²⁾

As defined in our credit agreement dated September 15, 2021, as amended.

⁽³⁾

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

Attachment 14(D)

UDR, Inc.
Definitions and Reconciliations
March 31, 2023
(Unaudited)

All guidance is based on current expectations of future economic conditions and the judgment of the Company's management team. The following reconciles from GAAP Net income/(loss) per share for full-year 2023 and second quarter of 2023 to forecasted FFO, FFO as Adjusted and AFFO per share and unit:

	Full-Year 2023
	Low			High

Forecasted net income per diluted share	$	0.47		$	0.55
Conversion from GAAP share count		(0.02	)		(0.02	)
Depreciation		1.97			1.97
Noncontrolling interests		0.01			0.01
Preferred dividends		0.01			0.01
Forecasted FFO per diluted share and unit	$	2.44		$	2.52
Legal and other costs		-			-
Casualty-related charges/(recoveries)		0.01			0.01
Realized/unrealized (gain)/loss on real estate technology investments		-			-
Forecasted FFO as Adjusted per diluted share and unit	$	2.45		$	2.53
Recurring capital expenditures		(0.23	)		(0.23	)
Forecasted AFFO per diluted share and unit	$	2.22		$	2.30


	2Q 2023
	Low			High

Forecasted net income per diluted share	$	0.11		$	0.13
Conversion from GAAP share count		(0.01	)		(0.01	)
Depreciation		0.50			0.50
Noncontrolling interests		-			-
Preferred dividends		-			-
Forecasted FFO per diluted share and unit	$	0.60		$	0.62
Legal and other costs		-			-
Casualty-related charges/(recoveries)		-			-
Realized/unrealized (gain)/loss on real estate technology investments		-			-
Forecasted FFO as Adjusted per diluted share and unit	$	0.60		$	0.62
Recurring capital expenditures		(0.06	)		(0.06	)
Forecasted AFFO per diluted share and unit	$	0.54		$	0.56

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