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 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”).

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 months ended March 31, 2025 and 2024, 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 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.

Current wording

At March 31, 2025, our consolidated real estate portfolio included 167 communities in 12 states plus the District of Columbia totaling 55,323 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 months ended March 31, 2025, was 54,435.

Previous 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:

Current wording

The following table summarizes our same-store market information by major geographic markets as of and for the three months ended March 31, 2025, as applicable:

Previous wording

OurSame-Store Communities segment represents those communities 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 as of September 30, 2024. These communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior period, there is no plan to conduct substantial redevelopment activities, and the communities are not classified as held for disposition within the current year. A community is considered to have stabilized occupancy once it achieves 90% occupancy for at least three consecutive months.

Current wording

OurSame-Store Communities segment represents those communities acquired, developed, and stabilized prior to January 1, 2024 and held as of March 31, 2025. These communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior period, there is no plan to conduct substantial redevelopment activities, and the communities are not classified as held for disposition within the current year. A community is considered to have stabilized occupancy once it achieves 90% occupancy for at least three consecutive months.

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 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.

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 months ended March 31, 2025, the Company did not sell any shares of common stock through its ATM program. As of March 31, 2025, we had 14.0 million shares of common stock available for future issuance under the ATM program.

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. 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.

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. The Revolving Credit Facility has a scheduled maturity date of January 31, 2028, with two six-month extension options, subject to certain conditions. The Term Loan has a scheduled maturity date of January 31, 2027, with a twelve-month extension option, subject to certain conditions.

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 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.

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 March 31, 2025, we had issued $250.0 million of commercial paper, for one month terms, at a weighted average annualized rate of 4.67%, leaving $450.0 million of unused capacity.

Previous 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

Current wording

During the remainder of 2025, we have approximately $176.8 million of secured debt maturing, inclusive of principal amortization, and $250.0 million of unsecured debt maturing, comprised solely of unsecured commercial paper. 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.

Previous wording

UDR has certain outstanding debt securities that are guaranteed by United Dominion Realty, L.P. (the “Operating Partnership”). With respect to this debt, as further outlined below, the Operating Partnership fully and unconditionally guarantees payment of any principal, premium and interest in full to the holders thereof. The Operating Partnership is a subsidiary of UDR, through which UDR conducts a significant portion of its business and holds a substantial amount of its assets. UDR also conducts business through other subsidiaries, including its taxable REIT subsidiaries. In addition to its ownership interest in the Operating Partnership, UDR holds interests in subsidiaries and joint ventures, owns and operates properties, issues securities from time to time and guarantees debt of certain of its subsidiaries. UDR, as the sole general partner of the Operating Partnership, owns 100 percent of the Operating Partnership’s general partnership interests and approximately 95 percent of its limited partnership interests and, by virtue thereof, has the ability to control all of the day-to-day operations of the Operating Partnership. UDR has concluded that it is the primary beneficiary of, and therefore consolidates, the Operating Partnership.

Current wording

UDR has certain outstanding debt securities that are guaranteed by the Operating Partnership. With respect to this debt, as further outlined below, the Operating Partnership fully and unconditionally guarantees payment of any principal, premium and interest in full to the holders thereof. The Operating Partnership is a subsidiary of UDR, through which UDR conducts a significant portion of its business and holds a substantial amount of its assets. UDR also conducts business through other subsidiaries, including its taxable REIT subsidiaries. In addition to its ownership interest in the Operating Partnership, UDR holds interests in subsidiaries and joint ventures, owns and operates properties, issues securities from time to time and guarantees debt of certain of its subsidiaries. UDR, as the sole general partner of the Operating Partnership, owns 100 percent of the Operating Partnership’s general partnership interests and approximately 95 percent of its limited partnership interests and, by virtue thereof, has the ability to control all of the day-to-day operations of the Operating Partnership. UDR has concluded that it is the primary beneficiary of, and therefore consolidates, the Operating Partnership.

Previous 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):

Current wording

The following tables present the summarized financial information for the Operating Partnership as of March 31, 2025 and December 31, 2024, and for the three months ended March 31, 2025 and 2024. 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 nine months ended September 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 three months ended March 31, 2025 and 2024.

Previous 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.

Current wording

For the three months ended March 31, 2025, ourNet cash provided by/(used in) operating activities was $156.2 million, compared to $167.6 million for the comparable period in 2024. The decrease in cash flow from operating activities was primarily due to changes in operating assets and liabilities, partially offset by an increase in NOI, primarily driven byhigher revenue per occupied home and an increase in weighted average physical occupancy.

Previous 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.

Current wording

For the three months ended March 31, 2025,Net cash provided by/(used in) investing activities was $17.8 million, compared to $18.4 million for the comparable period in 2024. The decrease in cash used in investing activities was primarily due to an increase in proceeds from the sales of real estate investments and a decrease in spend for development of real estate assets, partially offset by an increase from the issuance of notes receivables during the current period compared to the prior year period.

Previous wording

In February 2024, the Company sold an operating community located in Arlington, Virginia with a total of 214 apartment homes for gross proceeds of $100.0 million, resulting in a gain of approximately $16.9 million. This operating community was classified as held for disposition as of December 31, 2023.

Current wording

In January 2025, the Company sold two operating communities located in Brooklyn, New York and Englewood, New Jersey with a total of 373 apartment homes for gross proceeds of $211.5 million, resulting in gains of approximately $47.9 million. Both operating communities were classified as held for disposition as of December 31, 2024.

Previous 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.

Current wording

For the three months ended March 31, 2025, total capital expenditures of $55.4 million, or $1,009 per stabilized home, which in aggregate include recurring capital expenditures and major renovations, were spent across our portfolio, excluding development, as compared to $54.3 million, or $981 per stabilized home, for the comparable period in 2024.

Previous wording

The decrease in total capital expenditures was primarily due to:

Current wording

The increase in total capital expenditures was primarily due to:

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 nine months ended September 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 three months ended March 31, 2025 and 2024 (dollars in thousands except Per Home amounts):

Previous wording

At September 30, 2024, the Company was not developing any communities although the Company is incurring and capitalizing costs directly related to predevelopment activities in preparation of future development commencements.

Current wording

At March 31, 2025, our development pipeline consisted of one wholly-owned community totaling 300 apartment homes, none of which have been completed, with a budget of $133.6 million, in which we have a gross carrying value of $33.5 million. The homes are estimated to be completed during the second quarter of 2027. In addition, the Company is incurring and capitalizing costs directly related to predevelopment activities in preparation of future development commencements.

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 nine months ended September 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 three months ended March 31, 2025:

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 nine months ended September 30, 2024 and 2023, other than the one preferred equity investment discussed above.

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 three months ended March 31, 2025 and 2024.

Previous 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.

Current wording

For the three months ended March 31, 2025, ourNet cash provided by/(used in) financing activities was $(176.1) million, compared to $(188.9) million for the comparable period of 2024.

Previous wording

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

Current wording

The following significant financing activities occurred during the three months ended March 31, 2025:

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 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.

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 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 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, which is reflected in the margin noted above. In addition, the Credit Agreement 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 September 30, 2024, we had no outstanding borrowings under the Revolving Credit Facility, leaving $1.3 billion of unused capacity (excluding $3.8 million of letters of credit at September 30, 2024), and $350.0 million of outstanding borrowings under the Term Loan.

Current wording

As of March 31, 2025, we had no outstanding borrowings under the Revolving Credit Facility, leaving $1.3 billion of unused capacity (excluding $3.3 million of letters of credit at March 31, 2025), and $350.0 million of outstanding borrowings under the Term Loan.

Previous wording

The Company has a working capital credit facility, which provides for a $75.0 million unsecured revolving credit facility (the “Working Capital Credit Facility”) with a scheduled maturity date of January 12, 2025, with a one-year extension option. Based on the Company’s current credit rating, the Working Capital Credit Facility has an interest rate equal to Adjusted SOFR plus a margin of 77.5 basis points. Depending on the Company’s credit rating, the margin ranges from 70 to 140 basis points.

Current wording

The Company has a working capital credit facility, which provides for a $75.0 million unsecured revolving credit facility (the “Working Capital Credit Facility”) with a scheduled maturity date of January 12, 2026. Based on the Company’s current credit rating, the Working Capital Credit Facility has an interest rate equal to Adjusted SOFR plus a margin of 77.5 basis points. Depending on the Company’s credit rating, the margin ranges from 70 to 140 basis points.

Previous 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.

Current wording

As of March 31, 2025, we had $34.6 million of outstanding borrowings under the Working Capital Credit Facility, leaving $40.4 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 $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.

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 $486.6 million in variable rate debt that is not subject to interest rate swap contracts as of March 31, 2025. If market interest rates for variable rate debt increased by 100 basis points, our interest expense for the three months ended March 31, 2025 would increase by $1.2 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 nine months ended September 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 months ended March 31, 2025 and 2024.

Previous 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:

Current wording

Net income/(loss) attributable to common stockholders was $75.5 million ($0.23 per diluted share) for the three months ended March 31, 2025, as compared to $41.9 million ($0.13 per diluted share) for the comparable period in the prior year. The increase 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 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.

Current wording

OurSame-Store Community properties, those acquired, developed, and stabilized prior to January 1, 2024 and held on March 31, 2025 consisted of 54,435 apartment homes, respectively, and provided 97.0% of our total NOI for the three months ended March 31, 2025.

Previous 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.

Current wording

NOI for ourSame-Store Community properties increased 2.8%, or $7.4 million, for the three months ended March 31, 2025 compared to the same period in 2024. The increase in property NOI was attributable to a 2.6%, or $10.3 million, increase in property rental income, partially offset by a 2.3%, or $2.9 million, increase in operating expenses. The increase in property rental income was primarily driven by a 1.2%, or $4.6 million, increase in rental rates, a 9.9%, or $4.3 million, increase in reimbursement and ancillary and fee income and a 7.0%, or $0.8 million, decrease in vacancy loss. Weighted average physical occupancy increased by 0.2% to 97.2% and total monthly income per occupied home increased by 2.3% to $2,550.

Previous 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.

Current wording

The operating margin (property net operating income divided by property rental income) was 68.3% and 68.2% for the three months ended March 31, 2025 and 2024, respectively.

Previous 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.

Current wording

The remaining 3.0%, or $8.7 million, of our total NOI during the three months ended March 31, 2025 was generated from ourNon-Mature Communities/Other. NOI fromNon-Mature Communities/Other decreased by 16.5%, or $1.7 million, for the three months ended March 31, 2025 as compared to the same period in 2024. The decrease was primarily attributable to a $3.4 million decrease in sold and held for disposition communities NOI due to the sale of two operating communities during the three months ended March 31, 2025, partially offset by a $1.4 million increase in NOI from development communities completed in 2024.

Previous 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.

Current wording

For the three months ended March 31, 2025, the Company recognized gain/(loss) on sale of real estate owned of $47.9 million as compared to $16.9 million on sale of real estate owned for the three months ended March 31, 2024. The increase in 2025 as compared to 2024 was attributable to the sale of two operating communities located in Englewood, New Jersey, and Brooklyn, New York during the three months ended March 31, 2025, as compared to the sale of an operating community located in Arlington, Virginia during the three months ended March 31, 2024.

Previous 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.

Current wording

For the three months ended March 31, 2025 and 2024, the Company recognized interest income and other income/(expense), net of $1.9 million and $5.9 million, respectively. The decrease in 2025 as compared to 2024 was primarily due to a $2.9 million decrease in interest income from our notes receivables during the three months ended March 31, 2025 as compared to the same period in 2024, as a result of certain notes receivables placed on non-accrual status.

Previous wording

Inflation primarily impacts our results of operations as a result of wage pressures and increases in utilities and repair and maintenance costs. In addition, inflation could also impact our general and administrative expenses, the interest on our debt if variable or refinanced in a high-inflationary environment, our cost of capital, and our cost of development, redevelopment, maintenance or other operating activities. However, the majority of our apartment leases have initial terms of 12 months or less, which in an inflationary environment, and absent other factors such as increased supply, generally enables us to compensate for inflationary effects by increasing rents on our apartment homes. Although an extreme or sustained escalation in costs could have a negative impact on our residents and their ability to absorb rent increases, we do not believe this had a material impact on our results for the three and nine months ended September 30, 2024.

Current wording

Inflation primarily impacts our results of operations as a result of wage pressures and increases in utilities and repair and maintenance costs. In addition, inflation could also impact our general and administrative expenses, the interest on our debt if variable or refinanced in a high-inflationary environment, our cost of capital, and our cost of development, redevelopment, maintenance or other operating activities. However, the majority of our apartment leases have initial terms of 12 months or less, which in an inflationary environment, and absent other factors such as increased supply, generally enables us to compensate for inflationary effects by increasing rents on our apartment homes. Although an extreme or sustained escalation in costs could have a negative impact on our residents and their ability to absorb rent increases, we do not believe this had a material impact on our results for the three months ended March 31, 2025.

Previous wording

net income and cash flow as a measure of the Company’s activities in accordance with GAAP. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of funds available to fund our cash needs.

Current wording

Management considers FFO a useful metric for investors as the Company uses FFO in evaluating property acquisitions and its operating performance, and believes that FFO should be considered along with, but not as an alternative to, net income and cash flow as a measure of the Company’s activities in accordance with GAAP. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of funds available to fund our cash needs.

Previous wording

FFO as Adjusted (“FFOA”) attributable to common stockholders and unitholders is defined as FFO excluding the impact of non-comparable items including, but not limited to, acquisition-related costs, prepayment costs/benefits associated with early debt retirement, impairment write-downs or gains and losses on sales of real estate or other assets incidental to the main business of the Company and income taxes directly associated with those gains and losses, casualty-related expenses and recoveries, severance costs and legal and other costs.

Current wording

FFO as Adjusted (“FFOA”) attributable to common stockholders and unitholders is defined as FFO excluding the impact of non-comparable items including, but not limited to, acquisition-related costs, prepayment costs/benefits associated with early debt retirement, impairment write-downs or gains and losses on sales of real estate or other assets incidental to the main business of the Company and income taxes directly associated with those gains and losses, casualty-related expenses and recoveries, severance costs, software transition related costs and legal and other costs.

Previous wording

The following table outlines our reconciliation of* Net income/(loss) attributable to common stockholders* to FFO, FFOA, and AFFO for the three and nine months ended September 30, 2024 and 2023 (dollars in thousands):

Current wording

The following table outlines our reconciliation of* Net income/(loss) attributable to common stockholders* to FFO, FFOA, and AFFO for the three months ended March 31, 2025 and 2024 (dollars in thousands):

Previous wording

The following table is our reconciliation of FFO share information to weighted average common shares outstanding, basic and diluted, reflected on the UDR Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023*(shares in thousands):*

Current wording

The following table is our reconciliation of FFO share information to weighted average common shares outstanding, basic and diluted, reflected on the UDR Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024*(shares in thousands):*