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, 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”).

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, 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

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.

Current wording

At September 30, 2026, our consolidated real estate portfolio included 162 communities in 12 states plus the District of Columbia totaling 54,222 apartment homes. In addition, we have an ownership interest in 8,410 completed or to-be-completed apartment homes through unconsolidated joint ventures or partnerships, including 2,649 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, 2026, was 51,824 and 51,409, 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, 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 nine months ended September 30, 2026, as applicable:

Previous wording

We expect to meet our short-term liquidity requirements generally through net cash provided by property operations and borrowings under our credit agreements and our unsecured commercial paper program. We expect to meet certain long-term liquidity requirements such as scheduled debt maturities, the repayment of financing on development activities, and potential property acquisitions, through net cash provided by property operations, secured and unsecured borrowings, the issuance of debt or equity securities, and/or the disposition of properties. We believe that our net cash provided by property operations and borrowings under our credit agreements and our unsecured commercial paper program will continue to be adequate to meet both operating requirements and the payment of dividends by the Company in accordance with REIT requirements. Likewise, the budgeted expenditures for improvements and renovations of certain properties are expected to be funded from property operations, borrowings under credit agreements, the issuance of debt or equity securities, and/or dispositions of properties.

Current wording

We expect to meet our short-term liquidity requirements generally through net cash provided by property operations and borrowings under our credit agreements and our unsecured commercial paper program. We expect to meet certain long-term liquidity requirements such as scheduled debt maturities, the repayment of financing on development activities, and potential property acquisitions, through net cash provided by property operations, secured and unsecured borrowings, the issuance of debt or equity securities, the disposition of properties, and/or the sale of interests in properties through joint ventures, such as the Apollo JV formed in October 2026, which provided approximately $1.34 billion of cash proceeds (see Note 5, Joint Ventures and Partnerships). We believe that our net cash provided by property operations and borrowings under our credit agreements and our unsecured commercial paper program will continue to be adequate to meet both operating requirements and the payment of dividends by the Company in accordance with REIT requirements. Likewise, the budgeted expenditures for improvements and renovations of certain properties are expected to be funded from property operations, borrowings under credit agreements, the issuance of debt or equity securities, and/or dispositions of properties.

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 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.

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 nine months ended September 30, 2026, the Company did not sell any shares of common stock through its ATM program. As of September 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 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.

Current wording

During the three months ended September 30, 2026, the Company did not repurchase any shares of its common stock. During the nine months ended September 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. Through the end of October 2026, the Company repurchased an additional 5.2 million shares of its common stock at an average price of $35.48 per share for total consideration of approximately $185.1 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 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 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, 2026, we had issued $700.0 million of commercial paper, for one month terms, at a weighted average annualized rate of 4.15%, leaving no unused capacity.

Previous 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.

Current wording

During the remainder of 2026, we have approximately $26.7 million of secured debt maturing, inclusive of principal amortization, and $700.0 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 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 90 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 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.

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 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 notes are UDR’s unsecured general obligations and rank equally with all of UDR’s other unsecured and unsubordinated indebtedness outstanding from time to time. As a result, our payment of amounts due on the notes is subordinated to all of our existing and future secured obligations to the extent of the value of the collateral pledged toward any such secured obligation. Our payment of amounts due on the notes also is effectively subordinated to all liabilities, whether secured or unsecured, of any of our non-guarantor subsidiaries because, in the event of a bankruptcy, liquidation, dissolution, reorganization or similar proceeding with respect to such subsidiaries, we, as an equity holder of such subsidiaries, would not receive distributions from such subsidiaries until claims of any creditors of such subsidiaries are satisfied.

Current wording

subordinated to all of our existing and future secured obligations to the extent of the value of the collateral pledged toward any such secured obligation. Our payment of amounts due on the notes also is effectively subordinated to all liabilities, whether secured or unsecured, of any of our non-guarantor subsidiaries because, in the event of a bankruptcy, liquidation, dissolution, reorganization or similar proceeding with respect to such subsidiaries, we, as an equity holder of such subsidiaries, would not receive distributions from such subsidiaries until claims of any creditors of such subsidiaries are satisfied.

Previous 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):

Current wording

The following tables present the summarized financial information for the Operating Partnership as of September 30, 2026 and December 31, 2025, and for the three and nine months ended September 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 six months ended June 30, 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 nine months ended September 30, 2026 and 2025.

Previous 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.

Current wording

For the nine months ended September 30, 2026, ourNet cash provided by/(used in) operating activities was $592.7 million, compared to $641.5 million for the comparable period in 2025. The decrease in cash flow from operating activities was primarily due toa decrease in NOI, primarily due to operating communities sold during 2026 and 2025, partially offset by higher revenue per occupied home, a decrease in operating distributions from our unconsolidated joint ventures and partnerships, and changes in operating assets and liabilities.

Previous 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.

Current wording

For the nine months ended September 30, 2026,Net cash provided by/(used in) investing activities was $233.9 million, compared to $(154.1) 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 receivable during the current period compared to the prior year period, a decrease in capital expenditures, a decrease in investments in unconsolidated joint ventures and partnerships, 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 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 wording

In April 2026, the Company acquired a 232 apartment 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.)

Previous wording

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 wording

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.

Previous 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.

Current wording

For the nine months ended September 30, 2026, total capital expenditures of $176.3 million, or $3,259 per stabilized home, which in aggregate include recurring capital expenditures and major renovations, were spent across our portfolio, excluding development, as compared to $196.2 million, or $3,545 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 six months ended June 30, 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 nine months ended September 30, 2026 and 2025 (dollars in thousands except Per Home amounts):

Previous 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.

Current wording

At September 30, 2026, our development pipeline consisted of two wholly-owned communities totaling 685 apartment homes, of which 51 have been completed, with a budget of $314.9 million, in which we have a gross carrying value of $170.4 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 six months ended June 30, 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 nine months ended September 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 impairments in the value of its investments in unconsolidated joint ventures during the six months ended June 30, 2026 and 2025.

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

Previous 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.

Current wording

For the nine months ended September 30, 2026, ourNet cash provided by/(used in) financing activities was $(826.5) million, compared to $(486.6) million for the comparable period of 2025.

Previous wording

The following significant financing activities occurred during the six months ended June 30, 2026:

Current wording

The following significant financing activities occurred during the nine months ended September 30, 2026:

Previous 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.

Current wording

As of September 30, 2026, we had $34.6 million of outstanding borrowings under the Working Capital Credit Facility, leaving $40.4 million of unused capacity.

Previous wording

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 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, 2026, we had issued $700.0 million of commercial paper, for one month terms, at a weighted average annualized rate of 4.15%, leaving no 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 $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.

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 $936.6 million in variable rate debt that is not subject to interest rate swap contracts as of September 30, 2026. If market interest rates for variable rate debt increased by 100 basis points, our interest expense for the nine months ended September 30, 2026 would increase by $5.5 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, 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 nine months ended September 30, 2026 and 2025.

Previous 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:

Current wording

Net income/(loss) attributable to common stockholders was $214.9 million ($0.67 per diluted share) for the three months ended September 30, 2026, as compared to $39.2 million ($0.12 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

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 wording

Net income/(loss) attributable to common stockholders was $471.3 million ($1.45 per diluted share) for the nine months ended September 30, 2026, as compared to $151.2 million ($0.46 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 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.

Current wording

OurSame-Store Community properties, those acquired, developed, and stabilized prior to July 1, 2025 (for quarter-to-date comparison) and January 1, 2025 (for year-to-date comparison) and held on September 30, 2026 consisted of 51,824 and 51,409 apartment homes, respectively, and provided 95.3% and 93.5% of our total NOI for the three and nine months ended September 30, 2026.

Previous wording

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 wording

NOI for ourSame-Store Community properties increased 1.0%, or $2.6 million, for the three months ended September 30, 2026 compared to the same period in 2025. The increase in property NOI was attributable toa 1.5%, or $5.9 million, increase in property rental income, partially offset bya 2.7%, or $3.4 million, increase in operating expenses. The increase in property rental income was primarily driven by a 0.8%, or $2.9 million, increase in rental rates, and a 6.7%, or $3.3 million, increase in reimbursement and other income. Weighted average physical occupancy decreased by 0.1% to 96.6% and total monthly income per occupied home increased by 1.6% to $2,682.

Previous wording

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 wording

The increase in operating expenses was primarily driven by a 2.5%, or a $1.2 million, increase in real estate taxes due to higher assessed valuations, a 5.4%, or $1.0 million, increase in utilities primarily due to an increase in commodity prices, and a 5.1% or $0.9 million, increase in personnel costs primarily due to annual merit increases and severance costs.

Previous 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.

Current wording

The operating margin (property net operating income divided by property rental income) was 67.8% and 68.2% for the three months ended September 30, 2026 and 2025, respectively.

Previous 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.

Current wording

NOI for ourSame-Store Community properties increased 0.5%, or $4.3 million, for the nine months ended September 30, 2026 compared to the same period in 2025. The increase in property NOI was attributable toa 1.4%, or $16.0 million, increase in property rental income, partially offset bya 3.2%, or $11.7 million, increase in operating expenses. The increase in property rental income was primarily driven by a 0.7%, or $8.1 million, increase in rental rates, a 6.0%, or $8.5 million, increase in reimbursement and other income and a $2.6 million decrease in bad debt expense primarily due to a reduction in delinquent homes resulting in higher collections, partially offset by an 11.8%, or $3.7 million, increase in vacancy loss. Weighted average physical occupancy decreased by 0.3% to 96.6% and total monthly income per occupied home increased by 1.7% to $2,652.

Previous 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.

Current wording

The increase in operating expenses was primarily driven by a 6.4%, or $3.4 million, increase in utilities primarily due to an increase in commodity prices, a 2.3%, or $3.3 million, increase in real estate taxes due to higher assessed valuations, a 4.4%, or $2.4 million, increase in personnel costs primarily due to annual merit increases and severance costs, and a 3.0%, or $2.2 million, increase in repair and maintenance expense due to increases in third party vendor costs and weather related events.

Previous wording

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 wording

The operating margin (property net operating income divided by property rental income) was 67.8% and 68.3% for the nine months ended September 30, 2026 and 2025, respectively.

Previous 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.

Current wording

The remaining 4.7%, or $13.5 million, of our total NOI during the three months ended September 30, 2026 was generated from ourNon-Mature Communities/Other. NOI fromNon-Mature Communities/Other decreased by 37.6%, or $8.1 million, for the three months ended September 30, 2026 as compared to the same period in 2025. The decrease was primarily attributable to a $13.0 million decrease in sold and held for disposition communities NOI due to the sale of seven operating communities and the partial sale of one operating community during 2026, partially offset by a $2.9 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

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 wording

The remaining 6.5%, or $55.8 million, of our total NOI during the nine months ended September 30, 2026 was generated from ourNon-Mature Communities/Other. NOI fromNon-Mature Communities/Other decreased by 18.7%, or $12.8 million, for the nine months ended September 30, 2026 as compared to the same period in 2025. The decrease was primarily attributable to a $27.9 million decrease in sold and held for disposition communities NOI due to the sale of seven operating communities and the partial sale of one operating community during 2026, partially offset by an increase of $11.4 million 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 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 wording

For the three months ended September 30, 2026, the Company recognized gain/(loss) on sale of real estate owned of $190.1 million as compared to none for the three months ended September 30, 2025. The increase in 2026 as compared to 2025 was attributable to the sale of two operating communities and the partial sale of one operating community located in various markets during the three months ended September 30, 2026, as compared to no sales of real estate during the three months ended September 30, 2025.