UDR, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>UDR, Inc. has filed its Q1 2024 10-Q report detailing financial positions and debt instruments.</b>

AI Summary

UDR, Inc. (UDR) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. UDR, Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024. The filing covers the first quarter of 2024. Key financial statement elements such as Common Stock, Additional Paid-In Capital, Preferred Stock, Noncontrolling Interest, and Accumulated Other Comprehensive Income are detailed for various periods. Debt instruments including Commercial Paper, Variable Rate Debt, Unsecured Debt, and a Working Capital Credit Facility are referenced. Specific preferred stock series, such as Series F and Series E, are noted as of March 31, 2024.

Why It Matters

For investors and stakeholders tracking UDR, Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest financial snapshot of UDR, Inc., crucial for assessing performance and making investment decisions. The detailed breakdown of equity and debt components offers insights into the company's capital structure and financial health.

Risk Assessment

Risk Level: low — UDR, Inc. shows low risk based on this filing. The filing is a standard 10-Q report, which is routine for publicly traded companies and does not indicate any unusual or significant negative events.

Analyst Insight

Monitor future filings for trends in UDR's equity and debt levels, particularly in relation to its operational performance.

Key Numbers

• 2024-03-31 — Period End Date (10-Q filing)
• 2024-05-01 — Filing Date (10-Q filing)
• 2024 Q1 — Reporting Quarter (10-Q filing)

Key Players & Entities

• UDR, Inc. (company) — Filer name
• 0000074208 (company) — Central Index Key
• 20240331 (date) — Period of report
• 20240501 (date) — Filing date
• 6798 (industry_code) — Standard Industrial Classification
• 1745 SHEA CENTER DRIVE SUITE 200 (address) — Business address
• HIGHLANDS RANCH (location) — Business address city
• CO (location) — Business address state

FAQ

Industry Context

UDR, Inc. operates as a Real Estate Investment Trust (REIT), primarily focused on owning, managing, and developing apartment communities.

Regulatory Implications

As a publicly traded company, UDR, Inc. is subject to SEC regulations and reporting requirements, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Review the full 10-Q document for detailed financial statements and disclosures.
2. Analyze UDR's balance sheet for changes in equity and debt structure compared to prior periods.
3. Assess the company's liquidity and leverage ratios based on the reported financial data.

Year-Over-Year Comparison

This filing is a standard quarterly report and does not provide direct comparative data within the provided snippet.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 UDR New York Stock Exchange Indic

Filing Documents

• udr-20240331x10q.htm (10-Q) — 3447KB
• udr-20240331xex31d1.htm (EX-31.1) — 9KB
• udr-20240331xex31d2.htm (EX-31.2) — 9KB
• udr-20240331xex32d1.htm (EX-32.1) — 6KB
• udr-20240331xex32d2.htm (EX-32.2) — 6KB
• 0000074208-24-000039.txt (&nbsp;) — 15113KB
• udr-20240331.xsd (EX-101.SCH) — 77KB
• udr-20240331_cal.xml (EX-101.CAL) — 99KB
• udr-20240331_def.xml (EX-101.DEF) — 394KB
• udr-20240331_lab.xml (EX-101.LAB) — 672KB
• udr-20240331_pre.xml (EX-101.PRE) — 540KB
• udr-20240331x10q_htm.xml (XML) — 3568KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 (audited) 3 Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income/(Loss) for the three months ended March 31, 2024 and 2023 (unaudited) 5 Consolidated Statements of Changes in Equity for the three months ended March 31, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (unaudited) 7

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 37

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 51

Controls and Procedures

Item 4. Controls and Procedures 52

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 53

Risk Factors

Item 1A. Risk Factors 53

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 70

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 71

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 71

Other Information

Item 5. Other Information 71

Exhibits

Item 6. Exhibits 72

Signatures

Signatures 73 Exhibit 31.1 Exhibit 31.2 Exhibit 32.1 Exhibit 32.2 Table of Contents UDR, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share data) March 31, December 31, 2024 2023 (unaudited) (audited) ASSETS Real estate owned: Real estate held for investment $ 15,865,033 $ 15,757,456 Less: accumulated depreciation ( 6,407,092 ) ( 6,242,686 ) Real estate held for investment, net 9,457,941 9,514,770 Real estate under development (net of accumulated depreciation of $ 19 and $ 184 , respectively) 126,144 160,220 Real estate held for disposition (net of accumulated depreciation of $ 0 and $ 24,960 , respectively) — 81,039 Total real estate owned, net of accumulated depreciation 9,584,085 9,756,029 Cash and cash equivalents 2,116 2,922 Restricted cash 29,850 31,944 Notes receivable, net 235,382 228,825 Investment in and advances to unconsolidated joint ventures, net 954,301 952,934 Operating lease right-of-use assets 189,729 190,619 Other assets 195,025 209,969 Total assets $ 11,190,488 $ 11,373,242 LIABILITIES AND EQUITY Liabilities: Secured debt, net $ 1,236,779 $ 1,277,713 Unsecured debt, net 4,525,549 4,520,996 Operating lease liabilities 184,961 185,836 Real estate taxes payable 37,917 47,107 Accrued interest payable 27,255 47,710 Security deposits and prepaid rent 50,187 50,528 Distributions payable 151,512 149,600 Accounts payable, accrued expenses, and other liabilities 119,739 141,311 Total liabilities 6,333,899 6,420,801 Commitments and contingencies (Note 13) Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership 937,311 961,087 Equity: Preferred stock, no par value; 50,000,000 shares authorized at March 31, 2024 and December 31, 2023: 8.00 % Series E Cumulative Convertible; 2,686,308 and 2,686,308 shares issued and outstanding at March 31, 2024 and December

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2024 1. BASIS OF PRESENTATION Organization and Formation UDR, Inc. ("UDR," the "Company," "we," or "our") is a self-administered real estate investment trust, or REIT, that owns, operates, acquires, renovates, develops, redevelops, and manages apartment communities in targeted markets located in the United States. At March 31, 2024, our consolidated apartment portfolio consisted of 168 communities with a total of 55,386 apartment homes located in 21 markets. In addition, the Company has an ownership interest in 10,045 completed or to-be-completed apartment homes through unconsolidated joint ventures or partnerships, including 5,618 apartment homes owned by entities in which we hold preferred equity investments. Basis of Presentation The accompanying consolidated financial statements of UDR include its wholly-owned and/or controlled subsidiaries (see Note 4, Variable Interest Entities and Note 5 , Joint Ventures and Partnerships , for further discussion). All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying consolidated financial statements include the accounts of UDR and its subsidiaries, including United Dominion Realty, L.P. (the "Operating Partnership" or the "OP") and UDR Lighthouse DownREIT L.P. (the "DownREIT Partnership"). As of March 31, 2024, there were 190.0 million units in the Operating Partnership ("OP Units") outstanding, of which 176.5 million OP Units (including 0.1 million of general partnership units), or 92.9 %, were owned by UDR and 13.5 million OP Units, or 7.1 %, were owned by outside limited partners. As of March 31, 2024, there were 32.4 million units in the DownREIT Partnership ("DownREIT Units") outstanding, of which 21.5 million, or 66.4 %, were owned by UDR and its subsidiaries and 10.9 million, or 33.6 %, were owned by outside limited partners. The consolidated financial statements of UDR include the noncontrolling inte

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) MARCH 31, 2024 2. SIGNIFICANT ACCOUNTING POLICIES Recent Accounting Pronouncements In March 2024, the SEC issued final rules on the enhancement and standardization of climate-related disclosures. The rules require disclosure of, among other things: material climate-related risks; activities to mitigate or adapt to such risks; governance and management of such risks; and material greenhouse gas emissions from operations owned or controlled (Scope 1) and/or indirect emissions from purchased energy consumed in operations (Scope 2). Additionally, the rules require disclosure in the notes to the financial statements of the effects of severe weather events and other natural conditions, subject to certain materiality thresholds. The rules will become effective for the Company on a phased-in timeline starting in the year ended December 31, 2025. While the SEC has voluntarily stayed the rules, the Company is currently evaluating the effect the rules will have on its financial statement disclosures. In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures , which requires disclosure enhancements and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. The ASU is effective for the Company for the year ended December 31, 2025. The Company is currently evaluating the effect that the ASU will have on the consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07 , Segment Reporting (Topic 280) – Improvements to Reportable Segments Disclosures . ASU 2023-07 requires expanded disclosures of a public entity's reportable segments, and requires more enhanced information regarding a reportable segment's expenses on an interim and annual basis. The ASU is effective for the Company for

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) MARCH 31, 2024 to the related assets and liabilities acquired on its Consolidated Balance Sheets. When treated as an asset acquisition, the Company will not recognize a gain or loss on consolidation of a property. Allowance for Credit Losses The Company accounts for allowance for credit losses under the current expected credit loss ("CECL") impairment model for its financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and presents the net amount of the financial instrument expected to be collected. The CECL impairment model excludes operating lease receivables. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, that considers forecasts of future economic conditions in addition to information about past events and current conditions. Based on this model, we analyze the following criteria, as applicable in developing allowances for credit losses: historical loss information, the borrower's ability to make scheduled payments, the remaining time to maturity, the value of underlying collateral, projected future performance of the borrower and macroeconomic trends. The Company measures credit losses of financial assets on a collective (pool) basis when similar risk characteristics exist. If the Company determines that a financial asset does not share risk characteristics with the Company's other financial assets, the Company evaluates the financial asset for expected credit losses on an individual basis. Allowance for credit losses are recorded as a direct reduction from an asset's amortized cost basis. Credit losses and recoveries are recorded in Interest income and other income/(expense), net on the Consolidated Statements of Operations. Recoveries of financial assets previously written off are recorded when received. For the three months ended March 31, 2

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) MARCH 31, 2024 The following table summarizes our Notes receivable, net as of March 31, 2024 and December 31, 2023 ( dollars in thousands): Interest rate at Balance Outstanding (a) March 31, March 31, December 31, 2024 2024 2023 Notes due October 2024 (b) 10.50 % $ 100,859 $ 98,271 Note due December 2024 (c) 12.00 % 38,411 37,022 Note due December 2026 (d) 11.00 % 66,317 64,608 Note due December 2026 (e) 11

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