UDR, Inc. (NYSE: UDR)

UDR is a self administered real estate investment trust that owns operates acquires renovates develops redevelops disposes of and manages multifamily apartment communities in the United States. As of December 31 2025 the company consolidated portfolio comprised 165 communities located in 21 markets with a total of 55,240 completed apartment homes. In addition UDR held an ownership interest in 12,167 completed or to be completed apartment homes through unconsolidated joint ventures and partnerships. The company was developing one wholly owned community totaling 300 apartment homes none of which had been completed at the year end. UDR has elected to be taxed as a REIT under the Internal Revenue Code and must distribute at least 90 percent of its REIT taxable income to shareholders to maintain its status. As a REIT the company generally avoids U. S. federal corporate income tax on distributed income.

The primary source of revenue is monthly rental income from leasing apartment homes to residents. Leases typically have terms of twelve months or less allowing the company to adjust rents in response to market conditions. Additional revenue is generated from ancillary fees such as parking pet fees and amenity charges. The company also recognizes gains from the sale of properties and receives distributions from its joint venture investments. Interest income from cash balances and other investments contributes to overall earnings. Revenue growth is driven by market rent increases acquisitions completions of developments and successful property management.

The company operates through the following segments: Same Store Communities and Non Mature Communities/Other.

• Same Store Communities consists of properties that were acquired developed and stabilized prior to January 1 2024 and remained held as of December 31 2025 with stable occupancy and no planned substantial redevelopment. This segment represented 53,468 apartment homes or about 96.8 percent of the company's total owned units.

• Non Mature Communities/Other includes communities that do not meet the Same Store criteria such as recently acquired developed and redeveloped properties and the non apartment portions of mixed use projects. This segment also encompasses properties under development or redevelopment and any assets held for disposition.

UDR competes with a range of participants in the multifamily housing sector including other publicly traded apartment REITs private real estate firms pension funds insurance companies and individual investors. The company believes its competitive advantages stem from a fully integrated operating platform scalable technology systems diversified sources of capital geographic diversification across twenty one markets and a strong local presence in major metropolitan areas. UDR’s scale allows it to access both secured and unsecured debt markets on favorable terms which supports its acquisition development and redevelopment activities. The company also emphasizes disciplined capital allocation and a prudent balance sheet to maintain financial flexibility through various economic cycles. These strengths enable UDR to compete effectively for residents and investment opportunities against peers that may have greater size or lower cost of capital.

UDR serves individuals and families seeking rental housing in suburban and urban communities throughout its twenty one markets. The resident base includes young professionals retirees and households across a range of income levels who value the convenience amenities and location of the company's apartment homes. Leases are generally twelve months or less which provides renters with flexibility and allows the company to adjust rents in response to market demand. UDR does not disclose specific tenant names but its customers are primarily private households rather than corporate or government entities.