UDR, Inc. Files Q3 2024 10-Q Report

TL;DR

UDR filed its Q3 10-Q. Check financials for latest performance.

AI Summary

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

Why It Matters

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

Risk Assessment

Risk Level: medium — As a real estate investment trust, UDR is subject to market fluctuations and interest rate risks inherent in the real estate sector.

Key Numbers

• 2024 Q3 — Reporting Period (Indicates the quarter for which the financial data is reported.)
• 1231 — Fiscal Year End (Specifies the end date of UDR, Inc.'s fiscal year.)

Key Players & Entities

• UDR, Inc. (company) — Filer of the 10-Q report
• 20240930 (date) — Period of report for the 10-Q filing
• 20241031 (date) — Date the 10-Q filing was made
• HIGHLANDS RANCH, CO (location) — Business and mailing address of 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-20240930x10q.htm (10-Q) — 4352KB
• udr-20240930xex4d1.htm (EX-4.1) — 576KB
• udr-20240930xex22d1.htm (EX-22.1) — 4KB
• udr-20240930xex31d1.htm (EX-31.1) — 9KB
• udr-20240930xex31d2.htm (EX-31.2) — 9KB
• udr-20240930xex32d1.htm (EX-32.1) — 6KB
• udr-20240930xex32d2.htm (EX-32.2) — 6KB
• udr-20240930xex4d1001.jpg (GRAPHIC) — 1KB
• udr-20240930xex4d1002.jpg (GRAPHIC) — 1KB
• udr-20240930xex4d1003.jpg (GRAPHIC) — 1KB
• 0000074208-24-000081.txt ( ) — 18226KB
• udr-20240930.xsd (EX-101.SCH) — 79KB
• udr-20240930_cal.xml (EX-101.CAL) — 101KB
• udr-20240930_def.xml (EX-101.DEF) — 400KB
• udr-20240930_lab.xml (EX-101.LAB) — 713KB
• udr-20240930_pre.xml (EX-101.PRE) — 558KB
• udr-20240930x10q_htm.xml (XML) — 4278KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Consolidated Financial Statements

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

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 10

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 41

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 59

Controls and Procedures

Item 4. Controls and Procedures 59

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 60

Risk Factors

Item 1A. Risk Factors 60

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 76

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 77

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 77

Other Information

Item 5. Other Information 77

Exhibits

Item 6. Exhibits 78

Signatures

Signatures 79 Table of Contents UDR, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share data) September 30, December 31, 2024 2023 (unaudited) (audited) ASSETS Real estate owned: Real estate held for investment $ 16,152,262 $ 15,757,456 Less: accumulated depreciation ( 6,739,674 ) ( 6,242,686 ) Real estate held for investment, net 9,412,588 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 9,412,588 9,756,029 Cash and cash equivalents 2,285 2,922 Restricted cash 33,267 31,944 Notes receivable, net 280,006 228,825 Investment in and advances to unconsolidated joint ventures, net 966,227 952,934 Operating lease right-of-use assets 187,918 190,619 Other assets 197,473 209,969 Total assets $ 11,079,764 $ 11,373,242 LIABILITIES AND EQUITY Liabilities: Secured debt, net $ 1,140,692 $ 1,277,713 Unsecured debt, net 4,724,571 4,520,996 Operating lease liabilities 183,181 185,836 Real estate taxes payable 68,816 47,107 Accrued interest payable 28,773 47,710 Security deposits and prepaid rent 49,727 50,528 Distributions payable 151,755 149,600 Accounts payable, accrued expenses, and other liabilities 119,202 141,311 Total liabilities 6,466,717 6,420,801 Commitments and contingencies (Note 13) Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership 1,098,987 961,087 Equity: Preferred stock, no par value; 50,000,000 shares authorized at September 30, 2024 and December 31, 2023: 8.00 % Series E Cumulative Convertible; 2,600,678 and 2,686,308 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 43,192 44,614 Series F;

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 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 September 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 10,860 completed or to-be-completed apartment homes through unconsolidated joint ventures or partnerships, including 6,436 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 September 30, 2024, there were 189.8 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 93.0 %, were owned by UDR and 13.3 million OP Units, or 7.0 %, were owned by outside limited partners. As of September 30, 2024, there were 32.4 million units in the DownREIT Partnership ("DownREIT Units") outstanding, of which 22.0 million, or 67.9 %, were owned by UDR and its subsidiaries and 10.4 million, or 32.1 %, were owned by outside limited partners. The consolidated financial statements of UDR include the non

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) SEPTEMBER 30, 2024 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 the year ended December 31, 2024, and interim periods commencing in 2025. Early adoption is permitted. The Company is currently evaluating the effect that the ASU will have on the consolidated financial statements and related disclosures. Principles of Consolidation The Company accounts

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) SEPTEMBER 30, 2024 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 im

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