UDR, Inc. Files Q2 2024 10-Q Report

TL;DR

**UDR Q2 10-Q FILED: Check financials for latest performance.**

AI Summary

UDR, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and operational status. Key financial data and disclosures relevant to investors are presented in this quarterly report.

Why It Matters

This 10-Q filing provides investors with UDR, Inc.'s financial health and operational performance for the second quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: medium — As a real estate investment trust, UDR, Inc. is subject to market fluctuations, interest rate changes, and property-specific risks.

Key Numbers

• 6798 — SIC Code (Standard Industrial Classification for Real Estate Investment Trusts)
• 1231 — Fiscal Year End (Indicates the end of UDR, Inc.'s fiscal year)

Key Players & Entities

• UDR, Inc. (company) — Filer of the 10-Q report
• 0000074208 (company) — Central Index Key for UDR, Inc.
• 20240630 (date) — Conformed period of report
• 20240731 (date) — Filed as of date
• 720-283-6120 (phone_number) — Business phone number for UDR, Inc.

FAQ

Key Financial Figures

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

Filing Documents

• udr-20240630x10q.htm (10-Q) — 4325KB
• udr-20240630xex31d1.htm (EX-31.1) — 9KB
• udr-20240630xex31d2.htm (EX-31.2) — 9KB
• udr-20240630xex32d1.htm (EX-32.1) — 6KB
• udr-20240630xex32d2.htm (EX-32.2) — 6KB
• 0000074208-24-000060.txt ( ) — 17481KB
• udr-20240630.xsd (EX-101.SCH) — 78KB
• udr-20240630_cal.xml (EX-101.CAL) — 99KB
• udr-20240630_def.xml (EX-101.DEF) — 394KB
• udr-20240630_lab.xml (EX-101.LAB) — 680KB
• udr-20240630_pre.xml (EX-101.PRE) — 541KB
• udr-20240630x10q_htm.xml (XML) — 4323KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023 (audited) 3 Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income/(Loss) for the three and six months ended June 30, 2024 and 2023 (unaudited) 5 Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (unaudited) 8

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 9

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 40

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 57

Controls and Procedures

Item 4. Controls and Procedures 57

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 58

Risk Factors

Item 1A. Risk Factors 58

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 74

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 75

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 75

Other Information

Item 5. Other Information 75

Exhibits

Item 6. Exhibits 76

Signatures

Signatures 77 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) June 30, December 31, 2024 2023 (unaudited) (audited) ASSETS Real estate owned: Real estate held for investment $ 16,070,591 $ 15,757,456 Less: accumulated depreciation ( 6,572,743 ) ( 6,242,686 ) Real estate held for investment, net 9,497,848 9,514,770 Real estate under development (net of accumulated depreciation of $ 0 and $ 184 , respectively) — 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 9,497,848 9,756,029 Cash and cash equivalents 2,770 2,922 Restricted cash 31,616 31,944 Notes receivable, net 241,842 228,825 Investment in and advances to unconsolidated joint ventures, net 958,943 952,934 Operating lease right-of-use assets 188,828 190,619 Other assets 195,958 209,969 Total assets $ 11,117,805 $ 11,373,242 LIABILITIES AND EQUITY Liabilities: Secured debt, net $ 1,235,748 $ 1,277,713 Unsecured debt, net 4,540,388 4,520,996 Operating lease liabilities 184,076 185,836 Real estate taxes payable 44,333 47,107 Accrued interest payable 47,289 47,710 Security deposits and prepaid rent 49,168 50,528 Distributions payable 151,518 149,600 Accounts payable, accrued expenses, and other liabilities 120,784 141,311 Total liabilities 6,373,304 6,420,801 Commitments and contingencies (Note 13) Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership 1,021,782 961,087 Equity: Preferred stock, no par value; 50,000,000 shares authorized at June 30, 2024 and December 31, 2023: 8.00 % Series E Cumulative Convertible; 2,600,678 and 2,686,308 shares issued and outstanding at June 30, 2024 and December 31, 202

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 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 June 30, 2024, our consolidated apartment portfolio consisted of 169 communities with a total of 55,699 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 June 30, 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 June 30, 2024, there were 32.4 million units in the DownREIT Partnership ("DownREIT Units") outstanding, of which 21.7 million, or 67.0 %, were owned by UDR and its subsidiaries and 10.7 million, or 33.0 %, were owned by outside limited partners. The consolidated financial statements of UDR include the noncontrolling interest

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) JUNE 30, 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 t

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) JUNE 30, 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 m

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