UDR Inc

Previous wording

The following discussion should be read in conjunction with the consolidated financial statements appearing elsewhere herein and is based primarily on the consolidated financial statements for the three and six months ended June 30, 2024 and 2023, of UDR, Inc.** **Unless the context otherwise requires, all references in this Quarterly Report on Form 10-Q (this “Report”) to “UDR,” the “Company,” “we,” “our” and “us” refer to UDR, Inc., together with its consolidated subsidiaries, including United Dominion Realty, L.P. (the “Operating Partnership” or the “OP”) and UDR Lighthouse DownREIT L.P. (the “DownREIT Partnership”).

Current wording

The following discussion should be read in conjunction with the consolidated financial statements appearing elsewhere herein and is based primarily on the consolidated financial statements for the three and nine months ended September 30, 2024 and 2023, of UDR, Inc.** **Unless the context otherwise requires, all references in this Quarterly Report on Form 10-Q (this “Report”) to “UDR,” the “Company,” “we,” “our” and “us” refer to UDR, Inc., together with its consolidated subsidiaries, including United Dominion Realty, L.P. (the “Operating Partnership” or the “OP”) and UDR Lighthouse DownREIT L.P. (the “DownREIT Partnership”).

Previous wording

At June 30, 2024, our consolidated real estate portfolio included 169 communities in 13 states plus the District of Columbia totaling 55,699 apartment homes. In addition, we have 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. TheSame-Store Communityapartment home population for the three and six months ended June 30, 2024, was 52,545 and 51,804, respectively.

Current wording

At September 30, 2024, our consolidated real estate portfolio included 169 communities in 13 states plus the District of Columbia totaling 55,699 apartment homes. In addition, we have 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. TheSame-Store Communityapartment home population for the three and nine months ended September 30, 2024, was 52,837 and 51,804, respectively.

Previous wording

The following table summarizes our same-store market information by major geographic markets as of and for the three and six months ended June 30, 2024, as applicable:

Current wording

The following table summarizes our same-store market information by major geographic markets as of and for the three and nine months ended September 30, 2024, as applicable:

Previous wording

In July 2021, the Company entered into an ATM sales agreement under which the Company may offer and sell up to 20.0 million shares of its common stock, from time to time, to or through its sales agents and may enter into separate forward sales agreements to or through its forward purchasers. Upon entering into the ATM sales agreement, the Company simultaneously terminated the sales agreement for its prior at-the-market equity offering program, which was entered into in July 2017. During the three and six months ended June 30, 2024, the Company did not sell any shares of common stock through its ATM program. As of June 30, 2024, we had 14.0 million shares of common stock available for future issuance under the ATM program.

Current wording

In July 2021, the Company entered into an ATM sales agreement under which the Company may offer and sell up to 20.0 million shares of its common stock, from time to time, to or through its sales agents and may enter into separate forward sales agreements to or through its forward purchasers. Upon entering into the ATM sales agreement, the Company simultaneously terminated the sales agreement for its prior at-the-market equity offering program, which was entered into in July 2017. During the three and nine months ended September 30, 2024, the Company did not sell any shares of common stock through its ATM program. As of September 30, 2024, we had 14.0 million shares of common stock available for future issuance under the ATM program.

Previous wording

During the remainder of 2024, we have approximately $96.4 million of secured debt maturing, inclusive of principal amortization, and $445.6 million of unsecured debt maturing. We anticipate repaying the remaining debt with cash flow from our operations, proceeds from debt or equity offerings, proceeds from dispositions of properties, or from borrowings under our credit agreements and our unsecured commercial paper program.

Current wording

During the remainder of 2024, we have approximately $1.3 million of secured debt maturing, inclusive of principal amortization, and $290.0 million of unsecured debt maturing. We anticipate repaying the remaining debt with cash flow from

Previous wording

The Operating Partnership is the subsidiary guarantor of certain of our registered debt securities, including the $300 million of medium-term notes due September 2026, $300 million of medium-term notes due July 2027, $300 million of medium-term notes due January 2028, $300 million of medium-term notes due January 2029, $600 million of medium-term notes due January 2030, $600 million of medium-term notes due August 2031, $400 million of medium-term notes due August 2032, $350 million of medium-term notes due March 2033, $300 million of medium-term notes due in June 2033 and $300 million of medium-term notes due November 2034.

Current wording

The Operating Partnership is the subsidiary guarantor of certain of our registered debt securities, including the $300 million of medium-term notes due September 2026, $300 million of medium-term notes due July 2027, $300 million of medium-term notes due January 2028, $300 million of medium-term notes due January 2029, $600 million of medium-term notes due January 2030, $600 million of medium-term notes due August 2031, $400 million of medium-term notes due August 2032, $350 million of medium-term notes due March 2033, $300 million of medium-term notes due in June 2033, $300 million of medium-term notes due September 2034 and $300 million of medium-term notes due November 2034.

Previous wording

The following tables present the summarized financial information for the Operating Partnership as of June 30, 2024 and December 31, 2023, and for the three and six months ended June 30, 2024 and 2023. The information presented below excludes eliminations necessary to arrive at the information on a consolidated basis (dollars in thousands):

Current wording

The following tables present the summarized financial information for the Operating Partnership as of September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 2024 and 2023. The information presented below excludes eliminations necessary to arrive at the information on a consolidated basis (dollars in thousands):

Previous wording

The following discussion explains the changes inNet cash provided by/(used in) operating activities,Net cash provided by/(used in) investing activities, andNet cash provided by/(used in) financing activities that are presented in our Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023.

Current wording

The following discussion explains the changes inNet cash provided by/(used in) operating activities,Net cash provided by/(used in) investing activities, andNet cash provided by/(used in) financing activities that are presented in our Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023.

Previous wording

For the six months ended June 30, 2024, ourNet cash provided by/(used in) operating activities was $406.1 million, compared to $410.0 million for the comparable period in 2023. The decrease in cash flow from operating activities was primarily due tohigher borrowing costs and changes in operating assets and liabilities, partially offset by an increase in net operating income, primarily driven byhigher revenue per occupied home, an increase in weighted average physical occupancy and NOI from additional operating communities.

Current wording

For the nine months ended September 30, 2024, ourNet cash provided by/(used in) operating activities was $636.3 million, compared to $613.6 million for the comparable period in 2023. The increase in cash flow from operating activities was primarily due tohigher revenue per occupied home, an increase in weighted average physical occupancy, NOI from additional operating communities, and an increase in operating distributions from our unconsolidated joint ventures, partially offset by higher borrowing costs.

Previous wording

For the six months ended June 30, 2024,Net cash provided by/(used in) investing activities was $(79.3) million, compared to $(60.7) million for the comparable period in 2023. The increase in cash used in investing activities was primarily due to a decrease in proceeds from sales of real estate during the current period compared to the prior year period, partially offset by a decrease in spend for development of real estate assets, a decrease in capital expenditures, a decrease in cash investments in unconsolidated joint ventures, an increase in proceeds from the sale of equity securities, and a decrease from the net issuance of notes receivable during the current period compared to the prior year period.

Current wording

For the nine months ended September 30, 2024,Net cash provided by/(used in) investing activities was $(227.6) million, compared to $(216.2) million for the comparable period in 2023. The increase in cash used in investing activities was primarily due to a decrease in proceeds from sales of real estate during the current period compared to the prior year period, and an increase in investments in unconsolidated joint ventures and partnerships, partially offset by a decrease in spend for development of real estate assets, a decrease in capital expenditures, a decrease in acquisitions, and a decrease from the net issuance of notes receivable during the current period compared to the prior year period.

Previous wording

For the six months ended June 30, 2024, total capital expenditures of $123.4 million, or $2,230 per stabilized home, which in aggregate include recurring capital expenditures and major renovations, were spent across our portfolio, excluding development, as compared to $143.9 million, or $2,647 per stabilized home, for the comparable period in 2023.

Current wording

For the nine months ended September 30, 2024, total capital expenditures of $191.3 million, or $3,458 per stabilized home, which in aggregate include recurring capital expenditures and major renovations, were spent across our portfolio, excluding development, as compared to $228.6 million, or $4,203 per stabilized home, for the comparable period in 2023.

Previous wording

The following table outlines capital expenditures and repair and maintenance costs for all of our communities, excluding real estate under development, for the six months ended June 30, 2024 and 2023 (dollars in thousands except Per Home amounts):

Current wording

The following table outlines capital expenditures and repair and maintenance costs for all of our communities, excluding real estate under development, for the nine months ended September 30, 2024 and 2023 (dollars in thousands except Per Home amounts):

Previous wording

The Company’sInvestment in and advances to unconsolidated joint ventures and partnerships, net, are accounted for under the equity method of accounting. For the six months ended June 30, 2024:

Current wording

The Company’sInvestment in and advances to unconsolidated joint ventures and partnerships, net, are accounted for under the equity method of accounting. For the nine months ended September 30, 2024:

Previous wording

We evaluate our investments in unconsolidated joint ventures and partnerships when events or changes in circumstances indicate that there may be an other-than-temporary decline in value. We consider various factors to determine if a decrease in the value of the investment is other-than-temporary. The Company did not recognize any other-than-temporary impairments in the value of its investments in unconsolidated joint ventures or partnerships during the six months ended June 30, 2024 and 2023.

Current wording

We evaluate our investments in unconsolidated joint ventures and partnerships when events or changes in circumstances indicate that there may be an other-than-temporary decline in value. We consider various factors to determine if a decrease in the value of the investment is other-than-temporary. The Company did not recognize any other-than-temporary impairments in the value of its investments in unconsolidated joint ventures or partnerships during the nine months ended September 30, 2024 and 2023, other than the one preferred equity investment discussed above.

Previous wording

For the six months ended June 30, 2024, ourNet cash provided by/(used in) financing activities was $(327.2) million, compared to $(349.1) million for the comparable period of 2023.

Current wording

For the nine months ended September 30, 2024, ourNet cash provided by/(used in) financing activities was $(408.0) million, compared to $(395.1) million for the comparable period of 2023.

Previous wording

The following significant financing activities occurred during the six months ended June 30, 2024:

Current wording

The following significant financing activities occurred during the nine months ended September 30, 2024:

Previous wording

The Company has a $1.3 billion unsecured revolving credit facility (the “Revolving Credit Facility”) and a $350.0 million unsecured term loan (the “Term Loan”). The credit agreement for these facilities (the “Credit Agreement”) allows the total commitments under the Revolving Credit Facility and the total borrowings under the Term Loan to be increased to an aggregate maximum amount of up to $2.5 billion, subject to certain conditions, including obtaining commitments from one or more lenders. The Revolving Credit Facility has a scheduled maturity date of January 31, 2026, with two six-month extension options, subject to certain conditions. The Term Loan has a scheduled maturity date of January 31, 2027.

Current wording

The Company has a $1.3 billion unsecured revolving credit facility (the “Revolving Credit Facility”) and a $350.0 million unsecured term loan (the “Term Loan”). The credit agreement for these facilities (the “Credit Agreement”) allows the total commitments under the Revolving Credit Facility and the total borrowings under the Term Loan to be increased to an aggregate maximum amount of up to $2.5 billion, subject to certain conditions, including obtaining commitments from one or more lenders. In August 2024, the Company amended the Revolving Credit Facility to extend the maturity date to August 31, 2028, with two six-month extension options. The Revolving Credit Facility was previously set to mature on January 31, 2026, with two six-month extension options, subject to certain conditions. The Term Loan has a scheduled maturity date of January 31, 2027. In August 2024, the Company amended the Term Loan to include a twelve-month extension option, subject to certain conditions.

Previous wording

Based on the Company’s current credit rating, the Revolving Credit Facility has an interest rate equal to Adjusted SOFR plus a margin of 75.5 basis points and a facility fee of 15 basis points, and the Term Loan has an interest rate equal to Adjusted SOFR plus a margin of 83.0 basis points. Depending on the Company’s credit rating, the margin under the Revolving Credit Facility ranges from 70 to 140 basis points, the facility fee ranges from 10 to 30 basis points, and the margin under the Term Loan ranges from 75 to 160 basis points. Further, the Credit Agreement includes sustainability adjustments pursuant to

Current wording

Based on the Company’s current credit rating, the Revolving Credit Facility has an interest rate equal to Adjusted SOFR plus a margin of 77.5 basis points and a facility fee of 15 basis points, and the Term Loan has an interest rate equal to Adjusted SOFR plus a margin of 85.0 basis points. Depending on the Company’s credit rating, the margin under the Revolving Credit Facility ranges from 70 to 140 basis points, the facility fee ranges from 10 to 30 basis points, and the margin under the Term Loan ranges from 75 to 160 basis points. Further, as amended, the Credit Agreement includes sustainability adjustments pursuant to which the applicable margin for the Term Loan may be reduced by up to two basis points contingent upon the Company receiving green building certifications. In addition, the Credit Agreement, as amended, allows for the Company in consultation with the sustainability structuring agent to propose key performance indicators with respect to certain environmental, social, and governance goals of the Company, and thresholds or targets with respect thereto, and a related amendment to the Credit Agreement, that if entered into may allow a change in the applicable margin for the Revolving Credit Facility of up to four basis points and a change in the applicable facility fee of up to one basis point.

Previous wording

As of June 30, 2024, we had $1.6 million of outstanding borrowings under the Working Capital Credit Facility, leaving $73.4 million of unused capacity.

Current wording

As of September 30, 2024, we had $46.8 million of outstanding borrowings under the Working Capital Credit Facility, leaving $28.2 million of unused capacity.

Previous wording

The Company has an unsecured commercial paper program. Under the terms of the program, the Company may issue unsecured commercial paper up to a maximum aggregate amount outstanding of $700.0 million. The notes are sold under customary terms in the United States commercial paper market and rank pari passu with all of the Company’s other unsecured indebtedness. The notes are fully and unconditionally guaranteed by the Operating Partnership. As of June 30, 2024, we had issued $430.0 million of commercial paper, for one month terms, at a weighted average annualized rate of 5.54%, leaving $270.0 million of unused capacity.

Current wording

The Company has an unsecured commercial paper program. Under the terms of the program, the Company may issue unsecured commercial paper up to a maximum aggregate amount outstanding of $700.0 million. The notes are sold under customary terms in the United States commercial paper market and rank pari passu with all of the Company’s other unsecured indebtedness. The notes are fully and unconditionally guaranteed by the Operating Partnership. As of September 30, 2024, we had issued $290.0 million of commercial paper, for one month terms, at a weighted average annualized rate of 5.03%, leaving $410.0 million of unused capacity.

Previous wording

We are exposed to interest rate risk associated with variable rate notes payable and maturing debt that has to be refinanced. We do not hold financial instruments for trading or other speculative purposes, but rather issue these financial instruments to finance our portfolio of real estate assets and operations. Interest rate sensitivity is the relationship between changes in market interest rates and the fair value of market rate sensitive assets and liabilities. Our earnings are affected as changes in short-term interest rates impact our cost of variable rate debt and maturing fixed rate debt. We had $546.1 million in variable rate debt that is not subject to interest rate swap contracts as of June 30, 2024. If market interest rates for variable rate debt increased by 100 basis points, our interest expense for the six months ended June 30, 2024 would increase by $3.0 million based on the average balance outstanding during the period.

Current wording

We are exposed to interest rate risk associated with variable rate notes payable and maturing debt that has to be refinanced. We do not hold financial instruments for trading or other speculative purposes, but rather issue these financial instruments to finance our portfolio of real estate assets and operations. Interest rate sensitivity is the relationship between changes in market interest rates and the fair value of market rate sensitive assets and liabilities. Our earnings are affected as changes in short-term interest rates impact our cost of variable rate debt and maturing fixed rate debt. We had $538.8 million in variable rate debt that is not subject to interest rate swap contracts as of September 30, 2024. If market interest rates for variable rate debt increased by 100 basis points, our interest expense for the nine months ended September 30, 2024 would increase by $4.7 million based on the average balance outstanding during the period.

Previous wording

The following discussion explains the changes in results of operations that are presented in our Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023.

Current wording

The following discussion explains the changes in results of operations that are presented in our Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023.

Previous wording

Net income/(loss) attributable to common stockholders was $27.7 million ($0.08 per diluted share) for the three months ended June 30, 2024, as compared to $346.3 million ($1.05 per diluted share) for the comparable period in the prior year. The decrease resulted primarily from the following items, all of which are discussed in further detail elsewhere within this Report:

Current wording

Net income/(loss) attributable to common stockholders was $21.4 million ($0.06 per diluted share) for the three months ended September 30, 2024, as compared to $31.6 million ($0.10 per diluted share) for the comparable period in the prior year. The decrease resulted primarily from the following items, all of which are discussed in further detail elsewhere within this Report:

Previous wording

Net income/(loss) attributable to common stockholders was $69.6 million ($0.21 per diluted share) for the six months ended June 30, 2024, as compared to $376.1 million ($1.14 per diluted share) for the comparable period in the prior year. The decrease resulted primarily from the following items, all of which are discussed in further detail elsewhere within this Report:

Current wording

Net income/(loss) attributable to common stockholders was $91.0 million ($0.28 per diluted share) for the nine months ended September 30, 2024, as compared to $407.7 million ($1.24 per diluted share) for the comparable period in the prior year. The decrease resulted primarily from the following items, all of which are discussed in further detail elsewhere within this Report:

Previous wording

OurSame-Store Community properties, those acquired, developed, and stabilized prior to April 1, 2023 (for quarter-to-date comparison) and January 1, 2023 (for year-to-date comparison) and held on June 30, 2024 consisted of 52,545 and 51,804 apartment homes, respectively, and provided 94.5% and 93.7% of our total NOI for the three and six months ended June 30, 2024.

Current wording

OurSame-Store Community properties, those acquired, developed, and stabilized prior to July 1, 2023 (for quarter-to-date comparison) and January 1, 2023 (for year-to-date comparison) and held on September 30, 2024 consisted of 52,837 and 51,804 apartment homes, respectively, and provided 95.0% and 93.6% of our total NOI for the three and nine months ended September 30, 2024.

Previous wording

NOI for ourSame-Store Community properties increased 1.7%, or $8.9 million, for the six months ended June 30, 2024 compared to the same period in 2023. The increase in property NOI was attributable to a 2.8%, or $21.2 million, increase in property rental income, partially offset by a 5.4%, or $12.2 million, increase in operating expenses. The increase in property rental income was primarily driven by a 1.7%, or $12.0 million, increase in rental rates, a 9.3%, or $7.3 million, increase in reimbursement and ancillary and fee income, and an 8.9%, or $2.1 million, increase as a result of vacancy loss. Weighted average physical occupancy increased by 0.5% to 97.0% and total monthly income per occupied home increased by 2.4% to $2,538.

Current wording

NOI for ourSame-Store Community properties increased 0.8%, or $2.1 million, for the three months ended September 30, 2024 compared to the same period in 2023. The increase in property NOI was attributable to a 1.2%, or $4.5 million, increase in property rental income, partially offset by a 2.0%, or $2.4 million, increase in operating expenses. The increase in property rental income was primarily driven by a 1.4%, or $4.9 million, increase in rental rates and a 4.6%, or $2.0 million, increase in reimbursement and ancillary and fee income, partially offset by an 11.5%, or $1.3 million, increase in vacancy loss. Weighted average physical occupancy decreased by 0.4% to 96.3% and total monthly income per occupied home increased by 1.5% to $2,579.

Previous wording

The operating margin (property net operating income divided by property rental income) was 69.2% and 69.5% for the three months ended June 30, 2024 and 2023, respectively.

Current wording

The operating margin (property net operating income divided by property rental income) was 68.7% and 68.9% for the three months ended September 30, 2024 and 2023, respectively.

Previous wording

NOI for ourSame-Store Community properties increased 2.0%, or $5.4 million, for the three months ended June 30, 2024 compared to the same period in 2023. The increase in property NOI was attributable to a 2.5%, or $9.6 million, increase in property rental income, partially offset by a 3.7%, or $4.3 million, increase in operating expenses. The increase in property rental income was primarily driven by a 1.5%, or $5.2 million, increase in rental rates and an 8.6%, or $3.5 million, increase in reimbursement and ancillary and fee income. Weighted average physical occupancy increased by 0.2% to 96.8% and total monthly income per occupied home increased by 2.3% to $2,543.

Current wording

NOI for ourSame-Store Community properties increased 1.4%, or $10.6 million, for the nine months ended September 30, 2024 compared to the same period in 2023. The increase in property NOI was attributable to a 2.3%, or $25.8 million, increase in property rental income, partially offset by a 4.4%, or $15.2 million, increase in operating expenses. The increase in property rental income was primarily driven by a 1.6%, or $17.2 million, increase in rental rates, and a 7.7%, or $9.5 million, increase in reimbursement and ancillary and fee income. Weighted average physical occupancy increased by 0.1% to 96.7% and total monthly income per occupied home increased by 2.1% to $2,554.

Previous wording

The increase in operating expenses was primarily driven by a 17.0%, or $5.0 million, increase in personnel costs primarily due to a refundable payroll tax credit related to the Employee Retention Credit program in 2023, a 4.9%, or $2.2 million, increase in repair and maintenance expense due to an increase in the cost per home of those that were turned during the year, the impact of inflation on third party vendor costs and weather-related events, a 3.5%, or $3.2 million, increase in real estate taxes due to higher assessed valuations and a 10.8%, or $1.6 million, increase in administration and marketing.

Current wording

The increase in operating expenses was primarily driven by a 12.9%, or $5.9 million, increase in personnel costs primarily due to a refundable payroll tax credit related to the Employee Retention Credit program in 2023, a 4.9%, or $3.4 million, increase in repair and maintenance expense due to an increase in the cost per home of those that were turned during the year, the impact of inflation on third party vendor costs and weather-related events, a 2.2%, or $3.1 million, increase in real estate taxes due to higher assessed valuations and a 11.5%, or $2.6 million, increase in administration and marketing.

Previous wording

The operating margin (property net operating income divided by property rental income) was 69.0% and 69.8% for the six months ended June 30, 2024 and 2023, respectively.

Current wording

The operating margin (property net operating income divided by property rental income) was 68.9% and 69.5% for the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

The remaining 6.3%, or $35.7 million, of our total NOI during the six months ended June 30, 2024 was generated from ourNon-Mature Communities/Other. NOI fromNon-Mature Communities/Other increased by 6.6%, or $2.2 million, for the six months ended June 30, 2024 as compared to the same period in 2023. The increase was primarily attributable to a $17.1 million increase in stabilized, non-mature communities NOI due to development communities completed and communities acquired in 2023 becoming stabilized and a $3.6 million increase in non-residential/other NOI primarily due to higher retail tenant rents partially offset by an $18.1 million decrease in sold and held for disposition communities NOI due to the sale of an operating community during the six months ended June 30, 2024 and the partial sale of four operating communities in 2023.

Current wording

The remaining 5.0%, or $14.2 million, of our total NOI during the three months ended September 30, 2024 was generated from ourNon-Mature Communities/Other. NOI fromNon-Mature Communities/Other increased by 35.0%, or $3.7 million, for the three months ended September 30, 2024 as compared to the same period in 2023. The increase was primarily attributable to an $5.0 million increase in stabilized, non-mature communities NOI due to development communities completed and communities acquired in 2023 becoming stabilized, partially offset by a $2.7 million decrease in sold and held for disposition communities NOI due to the sale of an operating community during the nine months ended September 30, 2024 and the partial sale of four operating communities in 2023.

Previous wording

The remaining 5.5%, or $15.5 million, of our total NOI during the three months ended June 30, 2024 was generated from ourNon-Mature Communities/Other. NOI fromNon-Mature Communities/Other increased by 14.1%, or $1.9 million, for the three months ended June 30, 2024 as compared to the same period in 2023. The increase was primarily attributable to an $8.4 million increase in stabilized, non-mature communities NOI due to development communities completed and communities acquired in 2023 becoming stabilized and a $2.7 million increase in non-residential/other NOI primarily due to higher retail tenant rents partially offset by a $9.2 million decrease in sold and held for disposition communities NOI due to the sale of an operating community during the six months ended June 30, 2024 and the partial sale of four operating communities in 2023.

Current wording

The remaining 6.4%, or $54.2 million, of our total NOI during the nine months ended September 30, 2024 was generated from ourNon-Mature Communities/Other. NOI fromNon-Mature Communities/Other increased by 13.2%, or $6.3 million, for the nine months ended September 30, 2024 as compared to the same period in 2023. The increase was primarily attributable to a $22.6 million increase in stabilized, non-mature communities NOI due to development communities completed and communities acquired in 2023 becoming stabilized and a $4.1 million increase in non-residential/other NOI primarily due to higher retail tenant rents partially offset by a $20.8 million decrease in sold and held for disposition communities NOI due to the sale of an operating community during the nine months ended September 30, 2024 and the partial sale of four operating communities in 2023.

Previous wording

For the three months ended June 30, 2024, the Company recognized gain/(loss) on sale of real estate owned of zero as compared to $325.9 million on sale of real estate owned for the three months ended June 30, 2023. The decrease in 2024 as compared to 2023 was attributable to no sales of real estate owned during the three months ended June 30, 2024, as compared tothe partial sale of four operating communities located in various markets during the three months ended June 30, 2023.

Current wording

For the nine months ended September 30, 2024, the Company recognized gain/(loss) on sale of real estate owned of $16.9 million as compared to $325.9 million on sale of real estate owned for the nine months ended September 30, 2023. The decrease in 2024 as compared to 2023 was attributable to the sale of an operating community located in Arlington, Virginia during the nine months ended September 30, 2024, as compared tothe partial sale of four operating communities located in various markets during the nine months ended September 30, 2023.

Previous wording

For the three months ended June 30, 2024 and 2023, the Company recognized interest income and other income/(expense), net of $6.5 million and $10.4 million, respectively. The decrease in 2024 as compared to 2023 was primarily due to $(0.2) million of unrealized losses from investment income/(loss) from our direct investment in SmartRent during the three months ended June 30, 2024, as compared to $8.7 million of unrealized gains during the three months ended June 30, 2023, partially offset by a $4.7 million increase in interest income from our notes receivables due to higher outstanding balances during the three months ended June 30, 2024, as compared the same period in 2023.

Current wording

For the nine months ended September 30, 2024 and 2023, the Company recognized interest income and other income/(expense), net of $18.5 million and $8.4 million, respectively. The increase in 2024 as compared to 2023 was primarily due to an increase of $11.0 million in interest income from our notes receivables due to higher outstanding balances during the nine months end September 30, 2024, as compared to the same period in 2023, partially offset by$(1.3) million of unrealized losses from our direct investment in SmartRent during the nine months ended September 30, 2024, as compared to $(0.3) million of unrealized losses during the nine months ended September 30, 2023.

Previous wording

For the three months ended June 30, 2024 and 2023, the Company recognized interest expense of $47.8 million and $45.1 million, respectively. The increase in 2024 as compared to 2023 was primarily due to an increase in average interest rates and higher overall debt balances for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023.

Current wording

For the three months ended September 30, 2024 and 2023, the Company recognized interest expense of $50.2 million and $44.7 million, respectively. The increase in 2024 as compared to 2023 was primarily due to higher overall debt balances for the three months ended September 30, 2024, as compared to the three months ended September 30, 2023.

Previous wording

For the six months ended June 30, 2024 and 2023, the Company recognized interest expense of $95.9 million and $88.9 million, respectively. The increase in 2024 as compared to 2023 was primarily due to an increase in average interest rates and higher overall debt balances for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023.

Current wording

For the nine months ended September 30, 2024 and 2023, the Company recognized interest expense of $146.1 million and $133.5 million, respectively. The increase in 2024 as compared to 2023 was primarily due to higher overall debt balances for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023.

Previous wording

For the three months ended June 30, 2024 and 2023, the Company recognized other operating expenses of $7.6 million and $4.3 million, respectively. The increase in 2024 as compared to 2023 was primarily attributed to an increase in legal-related expenses and political contributions during the three months ended June 30, 2024, as compared to the same period of 2023.

Current wording

For the three months ended September 30, 2024 and 2023, the Company recognized other operating expenses of $6.4 million and $4.6 million, respectively. The increase in 2024 as compared to 2023 was primarily attributed to an increase in legal-related expenses and political contributions during the three months ended September 30, 2024, as compared to the same period of 2023.

Previous wording

For the six months ended June 30, 2024 and 2023, the Company recognized other operating expenses of $14.4 million and $7.3 million, respectively. The increase in 2024 as compared to 2023 was primarily attributed to an increase in legal-related expenses and political contributions during the six months ended June 30, 2024, as compared to the same period of 2023.

Current wording

For the nine months ended September 30, 2024 and 2023, the Company recognized other operating expenses of $20.8 million and $11.9 million, respectively. The increase in 2024 as compared to 2023 was primarily attributed to an increase in legal-related expenses and political contributions during the nine months ended September 30, 2024, as compared to the same period of 2023.

Previous wording

For the six months ended June 30, 2024 and 2023, the Company recognized income/(loss) from unconsolidated entities of $13.1 million and $19.4 million, respectively. The decrease in 2024 as compared to 2023 was primarily due to a decrease in income from our joint ventures and preferred equity investments during the six months ended June 30, 2024 as compared to the same period in 2023.

Current wording

For the three months ended September 30, 2024 and 2023, the Company recognized income/(loss) from unconsolidated entities of $(1.9) million and $5.5 million, respectively. The decrease in 2024 as compared to 2023 was primarily due to an $8.1 million non-cash impairment loss on one of the Company’s preferred equity investments during the three months ended September 30, 2024 partially offset by joint ventures with losses during the same period in 2023 that have been sold.

Previous wording

For the three months ended June 30, 2024 and 2023, the Company recognized income/(loss) from unconsolidated entities of $4.0 million and $9.7 million, respectively. The decrease in 2024 as compared to 2023 was primarily due to a decrease in income from our joint ventures and preferred equity investments during the three months ended June 30, 2024 as compared to the same period in 2023.

Current wording

For the nine months ended September 30, 2024 and 2023, the Company recognized income/(loss) from unconsolidated entities of $11.3 million and $24.9 million, respectively. The decrease in 2024 as compared to 2023 was primarily due to an $8.1 million non-cash impairment loss on one of the Company’s preferred equity investments and a decrease in income from our joint ventures and preferred equity investments during the nine months ended September 30, 2024 as compared to the same period in 2023.