UDR, Inc.
For the period ended Jun 30, 2026. Filed Jul 28, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 28, 2026
UDR$36.58-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0000074208-26-000049
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-28.
0000074208-26-000073
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 123 previous paragraphs and 137 current paragraphs.
74 unchanged; 40 reworded; 18 added; 4 removed; 5 previous and 5 current paragraphs rearranged.
Tables are not compared: 63 previous and 72 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
Acquisitions
Current report
In April 2026, the Company acquired a 232-home operating apartment community located in Portland, Oregon in connection with the liquidation of the Company’s interest in a joint venture. As a result, the community became wholly owned, and the Company began consolidating the community. In connection with the liquidation, the Company repaid the joint venture’s $53.4 million first mortgage loan and settled its $18.9 million preferred equity investment. No cash consideration was paid to the joint venture partner in connection with the acquisition. The Company increased its real estate assets owned by approximately $72.1 million, and recorded $1.2 million of in-place lease intangibles. Following the recognition of the acquired assets and assumed liabilities, the Company recognized a gain on consolidation of $0.3 million inIncome/(loss) from unconsolidated entitieson the Consolidated Statements of Operations. (See Note 5,Joint Ventures and Partnerships for more information.)
Current report
In June 2026, the Company acquired the developer’s equity interest in a 66 apartment home operating community located in Santa Monica, California. The Company previously held a secured first mortgage loan and preferred equity investment with the joint venture. In connection with the acquisition, the Company issued $2.8 million of OP Units to the developer. As a result, the joint venture became wholly owned, and the Company began consolidating the community. Concurrent with the acquisition, the Company's first mortgage loan, including accrued interest, was settled in full, and its preferred equity investment was adjusted to its liquidation value, resulting in a $3.8 million gain recognized inIncome/(loss) from unconsolidated entitieson the Consolidated Statements of Operations*.* The Company increased its real estate assets owned by approximately $45.1 million, and recorded $1.2 million of in-place lease intangibles.
Current report
In June 2026, the Company sold an operating community located in Nashville, Tennessee with 206 apartment homes for gross proceeds of $41.5 million, resulting in a gain of approximately $35.7 million. As of June 30, 2026, the net proceeds of $40.8 million were held by a qualified intermediary, which was recorded inOther Assets on the Consolidated Balance Sheets.
Current report
Three Months Ended June 30, 2026 vs. Three Months Ended June 30, 2025
Current report
NOI for ourSame-Store Community properties increased 1.4%, or $3.7 million, for the three months ended June 30, 2026 compared to the same period in 2025. The increase in property NOI was attributable toa 1.8%, or $7.0 million, increase in property rental income, partially offset bya 2.6%, or $3.2 million, increase in operating expenses. The increase in property rental income was primarily driven by a 0.7%, or $2.4 million, increase in rental rates, a 5.8%, or $2.8 million, increase in reimbursement and other income and a $2.3 million decrease in bad debt expense primarily due to a reduction in delinquent homes resulting in higher collections. Weighted average physical occupancy decreased by 0.2% to 96.6% and total monthly income per occupied home increased by 2.0% to $2,642.
Current report
The increase in operating expenses was primarily driven by a 2.8%, or a $1.3 million, increase in real estate taxes due to higher assessed valuations, a 5.2%, or $0.9 million, increase in utilities primarily due to an increase in commodity prices, and a 3.4% or $0.6 million, increase in personnel costs primarily due to annual merit increases and severance costs.
Current report
Six Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025
Current report
Three Months Ended June 30, 2026 vs. Three Months Ended June 30, 2025
Current report
Six Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025
Current report
For the three months ended June 30, 2026, the Company recognized gain/(loss) on sale of real estate owned of $35.7 million as compared to none for the three months ended June 30, 2025. The increase in 2026 as compared to 2025 was attributable to the sale of an operating community located in Nashville, Tennessee during the three months ended June 30, 2026, as compared to no sales of real estate during the three months ended June 30, 2025.
Current report
Other operating expenses
Current report
For the three months ended June 30, 2026 and 2025, the Company recognized other operating expenses of $13.0 million and $7.8 million, respectively. The increase in 2026 as compared to 2025 wasprimarilydue to an increase in legal fees incurred during the three months ended June 30, 2026 primarily related to the cases in which we have been named that allege antitrust violations by RealPage, Inc., as compared to the same period in 2025.
Current report
For the six months ended June 30, 2026 and 2025, the Company recognized other operating expenses of $22.4 million and $15.8 million, respectively. The increase in 2026 as compared to 2025 wasprimarilydue to an increase in legal fees incurred during the six months ended June 30, 2026 primarily related to the cases in which we have been named that allege antitrust violations by RealPage, Inc., as compared to the same period in 2025.
Current report
Interest income and other income/(expense), net
Current report
For the three months ended June 30, 2026 and 2025, the Company recognized interest income and other income/(expense), net of $2.6 million and $8.1 million, respectively. The decrease in 2026 as compared to 2025 wasprimarilydue to a $5.2 million decrease in interest income from our notes receivables primarily due to lower notes receivable balances during the three months ended June 30, 2026, as compared to the same period in 2025.
Current report
For the six months ended June 30, 2026 and 2025, the Company recognized interest income and other income/(expense), net of $5.0 million and $10.1 million, respectively. The decrease in 2026 as compared to 2025 wasprimarilydue to a $4.9 million decrease in interest income from our notes receivables primarily due to lower notes receivable balances during the six months ended June 30, 2026, as compared to the same period in 2025.
Current report
For the six months ended June 30, 2026 and 2025, the Company recognized other depreciation and amortization of $6.8 million and $14.5 million, respectively. The decrease in 2026 as compared to 2025 wasprimarily due to $5.9 million of software transition related costs incurred during the six months ended June 30, 2025, as compared to none during the six months ended June 30, 2026.
Removed paragraphs (4)
Previous report
This was partially offset by:
Previous report
This was partially offset by:
Previous report
Casualty-related charges/(recoveries), net
Previous report
For the three months ended March 31, 2026 and 2025, the Company recognized casualty-related charges/(recoveries), net of $5.7 million and $3.3 million, respectively. The increase of $2.4 million wasprimarilydue to casualty-related charges recorded during the three months ended March 31, 2026 as a result of damages caused by various winter storms.
Reworded paragraphs (40)
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 months ended March 31, 2026 and 2025, 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 six months ended June 30, 2026 and 2025, 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, prior to its liquidation in July 2026, UDR Lighthouse DownREIT L.P. (the “DownREIT Partnership”).
Previous wording
We are a self-administered real estate investment trust, or REIT, that owns, operates, acquires, renovates, develops, redevelops, disposes of, and manages multifamily apartment communities in targeted markets located in the United States. We were formed in 1972 as a Virginia corporation. In June 2003, we changed our state of incorporation from Virginia to Maryland. Our subsidiaries include the Operating Partnership and the DownREIT Partnership.
Current wording
We are a self-administered real estate investment trust, or REIT, that owns, operates, acquires, renovates, develops, redevelops, disposes of, and manages multifamily apartment communities in targeted markets located in the United States. We were formed in 1972 as a Virginia corporation. In June 2003, we changed our state of incorporation from Virginia to Maryland. Our subsidiaries include the Operating Partnership.
Previous wording
At March 31, 2026, our consolidated real estate portfolio included 161 communities in 12 states plus the District of Columbia totaling 54,081 apartment homes. In addition, we have an ownership interest in 9,018 completed or to-be-completed apartment homes through unconsolidated joint ventures or partnerships, including 3,617 apartment homes owned by entities in which we hold preferred equity investments. TheSame-Store Communityapartment home population for the three months ended March 31, 2026, was 52,782.
Current wording
At June 30, 2026, our consolidated real estate portfolio included 162 communities in 12 states plus the District of Columbia totaling 54,173 apartment homes. In addition, we have an ownership interest in 8,720 completed or to-be-completed apartment homes through unconsolidated joint ventures or partnerships, including 3,319 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, 2026, was 52,426 and 52,341, respectively.
Previous wording
The following table summarizes our same-store market information by major geographic markets as of and for the three months ended March 31, 2026, as applicable:
Current 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, 2026, as applicable:
Previous wording
OurSame-Store Communities segment represents those communities acquired, developed, and stabilized prior to January 1, 2025 and held as of March 31, 2026. 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 April 1, 2025 (for quarter-to-date comparison) and January 1, 2025 (for year-to-date comparison) and held as of June 30, 2026. 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. During the three months ended March 31, 2026, the Company did not sell any shares of common stock through its ATM program. As of March 31, 2026, 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. During the three and six months ended June 30, 2026, the Company did not sell any shares of common stock through its ATM program. As of June 30, 2026, we had 14.0 million shares of common stock available for future issuance under the ATM program.
Previous wording
During the three months ended March 31, 2026, the Company repurchased 2.8 million shares of its common stock at an average price of $36.27 per share for total consideration of approximately $100.0 million under its share repurchase program. In April 2026, the Company repurchased an additional 1.4 million shares of its common stock at an average price of $35.01 per share for total consideration of approximately $50.0 million under its share repurchase program.
Current wording
During the three months ended June 30, 2026, the Company repurchased 5.5 million shares of its common stock at an average price of $36.49 per share for total consideration of approximately $200.3 million under its share repurchase program. During the six months ended June 30, 2026, the Company repurchased 8.2 million shares of its common stock at an average price of $36.43 per share for total consideration of approximately $300.3 million under its share repurchase program.
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 March 31, 2026, we had
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
Previous wording
During the remainder of 2026, we have approximately $55.0 million of secured debt maturing, inclusive of principal amortization, and $470.0 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 2026, we have approximately $28.4 million of secured debt maturing, inclusive of principal amortization, and $780.0 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.
Previous wording
The following tables present the summarized financial information for the Operating Partnership as of March 31, 2026 and December 31, 2025, and for the three months ended March 31, 2026 and 2025. 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 June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025. 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 three months ended March 31, 2026 and 2025.
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 six months ended June 30, 2026 and 2025.
Previous wording
For the three months ended March 31, 2026, ourNet cash provided by/(used in) operating activities was $128.7 million, compared to $156.2 million for the comparable period in 2025. The decrease in cash flow from operating activities
Current wording
For the six months ended June 30, 2026, ourNet cash provided by/(used in) operating activities was $390.9 million, compared to $406.5 million for the comparable period in 2025. The decrease in cash flow from operating activities was primarily due toa decrease in operating distributions from our unconsolidated joint ventures and partnerships, partially offset by changes in operating assets and liabilities.
Previous wording
For the three months ended March 31, 2026,Net cash provided by/(used in) investing activities was $283.7 million, compared to $17.8 million for the comparable period in 2025. The increase in cash provided by investing activities was primarily due to an increase in distributions received from unconsolidated joint ventures and partnerships, a decrease in the issuance of notes receivables during the current period compared to the prior year period, a decrease in capital expenditures, and an increase in proceeds from the sales of real estate investments, partially offset by an increase in spend for development of real estate.
Current wording
For the six months ended June 30, 2026,Net cash provided by/(used in) investing activities was $225.8 million, compared to $(40.9) million for the comparable period in 2025. The increase in cash provided by investing activities was primarily due to an increase in distributions received from unconsolidated joint ventures and partnerships, a decrease in the issuance of notes receivables during the current period compared to the prior year period, a decrease in capital expenditures, and an increase in proceeds from the sales of real estate investments, partially offset by an increase in spend on acquisitions and an increase in spend for development of real estate.
Previous wording
In March 2026, the Company sold four operating communities located in various markets with a total of 1,159 apartment homes for gross proceeds of $362.0 million, resulting in total gains of approximately $157.4 million. As of March 31, 2026, the Company had $134.8 million due from a qualified intermediary related to the sale of real estate in connection with a like-kind exchange under Section 1031 of the Internal Revenue Code, which is intended to qualify for nonrecognition of taxable gain, and was recorded inOther Assets on the Consolidated Balance Sheets. The proceeds were received from the intermediary in April 2026 and were used to repay amounts outstanding under our unsecured revolving credit facility.
Current wording
In March 2026, the Company sold four operating communities located in various markets with a total of 1,159 apartment homes for gross proceeds of $362.0 million, resulting in total gains of approximately $157.4 million.
Previous wording
For the three months ended March 31, 2026, total capital expenditures of $42.1 million, or $767 per stabilized home, which in aggregate include recurring capital expenditures and major renovations, were spent across our portfolio, excluding development, as compared to $55.4 million, or $1,009 per stabilized home, for the comparable period in 2025.
Current wording
For the six months ended June 30, 2026, total capital expenditures of $108.4 million, or $1,991 per stabilized home, which in aggregate include recurring capital expenditures and major renovations, were spent across our portfolio, excluding development, as compared to $119.9 million, or $2,168 per stabilized home, for the comparable period in 2025.
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 three months ended March 31, 2026 and 2025 (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 six months ended June 30, 2026 and 2025 (dollars in thousands except Per Home amounts):
Previous wording
At March 31, 2026, 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 $91.7 million. The homes are estimated to be completed during the first quarter of 2027. In addition, the Company is incurring and capitalizing costs directly related to predevelopment activities at other development sites in preparation of future commencements.
Current wording
At June 30, 2026, our development pipeline consisted of two wholly-owned communities totaling 685 apartment homes, none of which have been completed, with a budget of $314.9 million, in which we have a gross carrying value of $147.6 million. The homes are estimated to be completed between the first quarter of 2027 and the second quarter of 2029. In addition, the Company is incurring and capitalizing costs directly related to predevelopment activities at other development sites in preparation of future 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 three months ended March 31, 2026:
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 six months ended June 30, 2026:
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 incur any other-than-temporary
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 incur any other-than-temporary impairments in the value of its investments in unconsolidated joint ventures during the six months ended June 30, 2026 and 2025.
Previous wording
For the three months ended March 31, 2026, ourNet cash provided by/(used in) financing activities was $(414.5) million, compared to $(176.1) million for the comparable period of 2025.
Current wording
For the six months ended June 30, 2026, ourNet cash provided by/(used in) financing activities was $(617.5) million, compared to $(365.9) million for the comparable period of 2025.
Previous wording
The following significant financing activities occurred during the three months ended March 31, 2026:
Current wording
The following significant financing activities occurred during the six months ended June 30, 2026:
Previous wording
As of March 31, 2026, we had $135.0 million outstanding borrowings under the Revolving Credit Facility, leaving $1.2 billion of unused capacity (excluding $4.3 million of letters of credit at March 31, 2026), and $350.0 million of outstanding borrowings under the Term Loan.
Current wording
As of June 30, 2026, we had no outstanding borrowings under the Revolving Credit Facility, leaving $1.3 billion of unused capacity (excluding $4.3 million of letters of credit at June 30, 2026), and $350.0 million of outstanding borrowings under the Term Loan.
Previous wording
As of March 31, 2026, we had $9.6 million of outstanding borrowings under the Working Capital Credit Facility, leaving $65.4 million of unused capacity.
Current wording
As of June 30, 2026, we had $11.0 million of outstanding borrowings under the Working Capital Credit Facility, leaving $64.0 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 March 31, 2026, we had issued $170.0 million of commercial paper, for one month terms, at a weighted average annualized rate of 4.13%, leaving $530.0 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 June 30, 2026, we had issued $480.0 million of commercial paper, for one month terms, at a weighted average annualized rate of 4.01%, leaving $220.0 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 $516.6 million in variable rate debt that is not subject to interest rate swap contracts as of March 31, 2026. If market interest rates for variable rate debt increased by 100 basis points, our interest expense for the three months ended March 31, 2026 would increase by $1.7 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 $693.0 million in variable rate debt that is not subject to interest rate swap contracts as of June 30, 2026. If market interest rates for variable rate debt increased by 100 basis points, our interest expense for the six months ended June 30, 2026 would increase by $3.3 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 months ended March 31, 2026 and 2025.
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 six months ended June 30, 2026 and 2025.
Previous wording
Net income/(loss) attributable to common stockholders was $188.6 million ($0.57 per diluted share) for the three months ended March 31, 2026, as compared to $75.5 million ($0.23 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:
Current wording
Net income/(loss) attributable to common stockholders was $67.8 million ($0.21 per diluted share) for the three months ended June 30, 2026, as compared to $36.5 million ($0.11 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 January 1, 2025 and held on March 31, 2026 consisted of 52,782 apartment homes, and provided 94.4% of our total NOI for the three months ended March 31, 2026.
Current wording
OurSame-Store Community properties, those acquired, developed, and stabilized prior to April 1, 2025 (for quarter-to-date comparison) and January 1, 2025 (for year-to-date comparison) and held on June 30, 2026 consisted of 52,426 and 52,341 apartment homes, respectively, and provided 95.1% and 94.3% of our total NOI for the three and six months ended June 30, 2026.
Previous wording
The operating margin (property net operating income divided by property rental income) was 67.0% and 68.1% for the three months ended March 31, 2026 and 2025, respectively.
Current wording
The operating margin (property net operating income divided by property rental income) was 68.6% and 68.9% for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
NOI for ourSame-Store Community properties decreased 0.8%, or $2.2 million, for the three months ended March 31, 2026 compared to the same period in 2025. The decrease in property NOI was attributable to a 4.4%, or $5.6 million, increase in operating expenses, partially offset by a 0.9%, or $3.4 million, increase in property rental income. The increase in property rental income was primarily driven by a 0.7%, or $2.7 million, increase in rental rates, and a 5.3%, or $2.5 million, increase in reimbursement and other income, partially offset by a 23.6%, or $2.3 million, increase in vacancy loss. Weighted average physical occupancy decreased by 0.6% to 96.6% and total monthly income per occupied home increased by 1.5% to $2,605.
Current wording
NOI for ourSame-Store Community properties increased 0.3%, or $1.6 million, for the six months ended June 30, 2026 compared to the same period in 2025. The increase in property NOI was attributable toa 1.3%, or $10.3 million, increase in property rental income, partially offset bya 3.5%, or $8.7 million, increase in operating expenses. The increase in property rental income was primarily driven by a 0.7%, or $5.0 million, increase in rental rates, a 5.5%, or $5.2 million, increase in reimbursement and other income and a $2.4 million decrease in bad debt expense primarily due to a reduction in delinquent homes resulting in higher collections, partially offset by a 14.9%, or $3.1 million, increase in vacancy loss. Weighted average physical occupancy decreased by 0.5% to 96.6% and total monthly income per occupied home increased by 1.8% to $2,623.
Previous wording
The increase in operating expenses was primarily driven by a 6.7%, or $1.6 million, increase in repair and maintenance expense due to increases in third party vendor costs and weather-related events, an 8.3%, or $1.6 million, increase in utilities, and a 1.9%, or $1.0 million, increase in real estate taxes due to higher assessed valuations.
Current wording
The increase in operating expenses was primarily driven by a 6.8%, or $2.4 million, increase in utilities primarily due to an increase in commodity prices, a 2.3%, or $2.3 million, increase in real estate taxes due to higher assessed valuations, a 3.6%, or $1.8 million, increase in repair and maintenance expense due to increases in third party vendor costs and weather related events, and a 3.8%, or $1.4 million, increase in personnel costs primarily due to annual merit increases and severance costs.
Previous wording
The remaining 5.6%, or $15.8 million, of our total NOI during the three months ended March 31, 2026 was generated from ourNon-Mature Communities/Other. NOI fromNon-Mature Communities/Other decreased by 1.3%, or $0.2 million, for the three months ended March 31, 2026 as compared to the same period in 2025. The decrease was primarily attributable to a $5.1 million decrease in sold and held for disposition communities NOI due to the sale of four operating communities during the three months ended March 31, 2026, partially offset by a $4.4 million increase in NOI from stabilized, non-mature
Current wording
The remaining 4.9%, or $14.1 million, of our total NOI during the three months ended June 30, 2026 was generated from ourNon-Mature Communities/Other. NOI fromNon-Mature Communities/Other decreased by 23.6%, or $4.4 million, for the three months ended June 30, 2026 as compared to the same period in 2025. The decrease was primarily attributable to a $9.7 million decrease in sold and held for disposition communities NOI due to the sale of five operating communities during 2026, partially offset by a $3.2 million increase in NOI from stabilized, non-mature communities, primarily due to completed development communities becoming stabilized and communities acquired in 2025 becoming stabilized.
Previous wording
For the three months ended March 31, 2026, the Company recognized gain/(loss) on sale of real estate owned of $157.4 million as compared to $47.9 million on sale of real estate owned for the three months ended March 31, 2025. The increase in 2026 as compared to 2025 was attributable to the sale of four operating communities located in various markets during the three months ended March 31, 2026, as compared to the sale of two operating communities located in Englewood, New Jersey, and Brooklyn, New York during the three months ended March 31, 2025.
Current wording
For the six months ended June 30, 2026, the Company recognized gain/(loss) on sale of real estate owned of $193.1 million as compared to $47.9 million on sale of real estate owned for the six months ended June 30, 2025. The increase in 2026 as compared to 2025 was attributable to the sale of five operating communities located in various markets during the six months ended June 30, 2026, as compared to the sale of two operating communities located in various markets during the six months ended June 30, 2025.
Previous wording
For the three months ended March 31, 2026 and 2025, the Company recognized income/(loss) from unconsolidated entities of $19.7 million and $5.8 million, respectively. The increase in 2026 as compared to 2025 was primarily due to an increase of $15.4 million from realized and unrealized gains on real estate technology investments, partially offset by $2.4 million decrease from unconsolidated joint ventures primarily due to higher depreciation and amortization expense partially offset by higher NOI.
Current wording
For the six months ended June 30, 2026 and 2025, the Company recognized income/(loss) from unconsolidated entities of $23.0 million and $9.4 million, respectively. The increase in 2026 as compared to 2025 was primarily due to an increase of $14.7 million from realized and unrealized gains on real estate technology investments.
Previous wording
For the three months ended March 31, 2026 and 2025, the Company recognized other depreciation and amortization of $3.3 million and $7.1 million, respectively. The decrease in 2026 as compared to 2025 wasprimarily due to $3.0 million of software transition related costs incurred during the three months ended March 31, 2025, as compared to none during the three months ended March 31, 2026.
Current wording
For the three months ended June 30, 2026 and 2025, the Company recognized other depreciation and amortization of $3.5 million and $7.4 million, respectively. The decrease in 2026 as compared to 2025 wasprimarily due to $3.0 million of software transition related costs incurred during the three months ended June 30, 2025, as compared to none during the three months ended June 30, 2026.
Previous wording
For the three months ended March 31, 2026 and 2025, the Company recognized net income attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership of $13.1 million and $5.3 million, respectively. The increase in 2026 as compared to 2025 primarily attributed to the noncontrolling interests’ share of the gain from the sale of four operating communities located in various markets during the three months ended March 31, 2026, as compared to the noncontrolling interests’ share of the gain from the sale of two operating communities located in Englewood, New Jersey and Brooklyn, New York in the same period of 2025.
Current wording
For the six months ended June 30, 2026 and 2025, the Company recognized net income attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership of $17.7 million and $7.9 million, respectively. The increase in 2026 as compared to 2025 primarily attributed to the noncontrolling interests’ share of the gains from the sale of five operating communities located in various markets during the three months ended June 30, 2026, as compared to the noncontrolling interests’ share of the gains from the sale of two operating communities located in various marketsin the same period of 2025.
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 months ended March 31, 2026.
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
Previous wording
AFFO is not intended to represent cash flow or liquidity for the period, and is only intended to provide an additional measure of our operating performance. We believe thatNet income/(loss) attributable to common stockholders is the most directly comparable GAAP financial measure to AFFO. Management believes that AFFO is a widely recognized measure of the operations of REITs, and presenting AFFO enables investors to assess our performance in comparison to other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not always be comparable to AFFO calculated by other REITs. AFFO should not be considered as an alternative to net income/(loss) (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to cash flow from
Current wording
AFFO is not intended to represent cash flow or liquidity for the period, and is only intended to provide an additional measure of our operating performance. We believe thatNet income/(loss) attributable to common stockholders is the most directly comparable GAAP financial measure to AFFO. Management believes that AFFO is a widely recognized measure of the operations of REITs, and presenting AFFO enables investors to assess our performance in comparison to other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not always be comparable to AFFO calculated by other REITs. AFFO should not be considered as an alternative to net income/(loss) (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions.
Previous 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, 2026 and 2025 (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 and six months ended June 30, 2026 and 2025 (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 months ended March 31, 2026 and 2025*(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 and six months ended June 30, 2026 and 2025*(shares in thousands):*
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
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, 2026, we had issued $480.0 million of commercial paper, for one month terms, at a weighted average annualized rate of 4.01%, leaving $220.0 million of unused capacity.
Current report — wording carried from elsewhere
Net income/(loss) attributable to common stockholders was $256.4 million ($0.79 per diluted share) for the six months ended June 30, 2026, as compared to $112.0 million ($0.34 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:
Current report — wording carried from elsewhere
The operating margin (property net operating income divided by property rental income) was 67.8% and 68.5% for the six months ended June 30, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
The remaining 5.7%, or $32.8 million, of our total NOI during the six months ended June 30, 2026 was generated from ourNon-Mature Communities/Other. NOI fromNon-Mature Communities/Other decreased by 12.3%, or $4.6 million, for the six months ended June 30, 2026 as compared to the same period in 2025. The decrease was primarily attributable to a $14.7 million decrease in sold and held for disposition communities NOI due to the sale of five operating communities during 2026, partially offset by a $7.6 million increase in NOI from stabilized, non-mature communities, primarily due to completed development communities becoming stabilized and communities acquired in 2025 becoming stabilized.
Current report — wording carried from elsewhere
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 six months ended June 30, 2026.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
was primarily due to changes in operating assets and liabilities and a decrease in NOI, partially offset byan increase in operating distributions from our unconsolidated joint ventures and partnerships.
Previous report — wording carried elsewhere
impairments in the value of its investments in unconsolidated joint ventures during the three months ended March 31, 2026 and 2025.
Previous report — wording carried elsewhere
issued $170.0 million of commercial paper, for one month terms, at a weighted average annualized rate of 4.13%, leaving $530.0 million of unused capacity.
Previous report — wording carried elsewhere
communities, primarily due to completed development communities becoming stabilized and a $3.8 million increase in NOI due to two communities acquired during 2025 becoming stabilized.
Previous report — wording carried elsewhere
operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions.