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 UDR Announces Fourth Quarter and Full-Year 2015 Results
   Tuesday, February 02, 2016 4:16:01 PM ET

UDR (the "Company") Fourth Quarter 2015 Highlights:

-- Funds from Operations ("FFO") per share was $0.41, FFO as Adjusted per share was $0.42 (+9% year-over-year) and AFFO per share was $0.37 (+11%).

-- Year-over-year same-store revenue and net operating income ("NOI") growth for the quarter were 6.2 percent and 6.6 percent, respectively.

-- Acquired $901 million of apartment communities located in Washington, D.C. in conjunction with the Home Properties privatization.

-- Amended unsecured revolving credit facility and amended and consolidated term loans outstanding.

-- Sold nine wholly-owned communities for $299 million at a weighted average 5.8 percent cash flow cap rate.



Full-Year 2015 Highlights:

-- FFO, FFO as Adjusted and AFFO per share were $1.66 (+6% year-over-year), $1.67 (+10%) and $1.51 (+11%), respectively.

-- Same-store revenue and NOI growth were 5.6 percent and 6.7 percent, respectively.

-- Entered into $559 million West Coast Development JV, consisting of 5 development communities in varied stages of construction.

-- Completed one development community containing 369 homes for an estimated cost of $218 million in Boston, MA.

-- Completed one development community in conjunction with a participating loan investment containing 218 homes for an estimated cost of $93 million in Denver, CO.

-- Commenced construction of a community located in Mountain View, CA and a community located in Huntington Beach, CA containing a combined 671 homes for an estimated aggregate pro-rata cost of $392 million.

-- Issued ~$211 million of common equity, net of fees, at or above Street consensus NAV.

-- Received a senior unsecured credit upgrade from S&P Rating Services to BBB+.

-- Sold twelve wholly-owned communities for $409 million at a weighted average 5.8 percent cash flow cap rate.

-- Sold our 20 percent interest in Texas JV, consisting of 3,359 homes in January 2015 for a total price of $400 million, of which UDR’s share of the proceeds was $44 million.

-- Increased the Company’s declared dividend per share to $1.11 (+7% year-over-year).

Summary of Earnings Metrics

                                                             Q4 2015                           Q4 2014                           FY 2015                           FY 2014             
---------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------ -------------------- -------------------- ------------------------------------------------ -------------------- -------------------- ------------------------------------------------ -------------------- -------------------- ----------------------------
FFO per common share and unit, diluted                                $0.41          $0.40          $1.66          $1.56  
---------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
Acquisition-related costs/(fees), including JVs                       0.005                             0.001                             0.013                             0.002
Cost/(benefit) associated with debt                                                                             -                                                                                          -                                                                                          -                                                                                      0.001
  extinguishment and other
Texas JV promote and disposition fee income                                                                (0.001 )                                                                                        -                                                                                     (0.036 )                                                                                        -
Long-term incentive plan transition costs                                                                   0.003                                                                                          -                                                                                      0.013                                                                                          -
(Gain)/loss on sale of land                                                                                     -                                                                                      0.008                                                                                          -                                                                                      0.004
Net gain on prepayment of note receivable                                                                       -                                                                                          -                                                                                          -                                                                                     (0.032 )
Legal claims, net of tax                                                                                    0.002                                                                                          -                                                                                      0.003                                                                                          -
Tax benefit associated with the conversion of                                                                   -                                                                                     (0.022 )                                                                                        -                                                                                     (0.022 )
  certain TRS
entities into REITs
Casualty-related (recoveries)/charges, including                      0.007          0.000          0.017          0.002  
  JVs, net
---------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
FFO as Adjusted per common share and unit, diluted                    $0.42          $0.39          $1.67          $1.52  
---------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
Recurring capital expenditures                                       (0.050 )                          (0.052 )                          (0.164 )                          (0.165 )
---------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
AFFO per common share and unit, diluted                               $0.37          $0.34          $1.51          $1.35  
---------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------

A reconciliation of FFO, FFO as Adjusted and AFFO to GAAP Net Income attributable to UDR, Inc. can be found on Attachment 2 of the Company’s fourth quarter supplemental package.

Operations

Same-store NOI increased 6.6 percent year-over-year in the fourth quarter of 2015 driven by same-store revenue growth of 6.2 percent against a 5.2 percent increase in same-store expenses. Same-store physical occupancy was 96.5 percent as compared to 96.8 percent. The annualized rate of turnover increased 40 basis points year-over-year to 44.4 percent in the quarter.

Summary of Same-Store Results Fourth Quarter 2015 versus Fourth Quarter 2014

Region           Revenue    Expense      NOI      % of Same-     Same-Store     Number of
                                    Growth/                       Growth                        Growth/                          Store                         Occupancy(2)                      Same-Store
                                   (Decline)                                                   (Decline)                     Portfolio(1)                                                         Homes(3)
------------ -------------------- --------- -------------------- ------- -------------------- --------- -------------------- ------------ -------------------- ------------ -------------------- ----------
                                                                              
West                                   9.2%                         6.9%                          10.0%                             44.1%                             96.2%                          12,229
Mid-Atlantic                           1.5%                         5.8%                         (0.3)%                             21.8%                             96.3%                           8,304
Southeast                              6.4%                         2.5%                           8.4%                             14.0%                             97.1%                           7,683
Northeast                              5.4%                         6.4%                           5.1%                             12.9%                             97.3%                           2,384
Southwest           5.3%      1.3%        7.8%           7.2%          96.7%        3,998
------------ -------------------- --------- -------------------- ------- -------------------- --------- -------------------- ------------ -------------------- ------------ -------------------- ----------
Total               6.2%      5.2%        6.6%         100.0%          96.5%       34,598
------------ -------------------- --------- -------------------- ------- -------------------- --------- -------------------- ------------ -------------------- ------------ -------------------- ----------
(1)   Based on Q4 2015 NOI.
(2)                      Average same-store occupancy for the quarter.
(3)                      During the fourth quarter, 34,598 apartment homes, or
                         approximately 85% of 40,728 total consolidated apartment homes
                         (versus 50,646 apartment homes inclusive of joint ventures,
                         preferred equity investments and development pipeline homes upon
                         completion), were classified as same-store. The Company defines
                         QTD SS Communities as those communities stabilized for five full
                         consecutive quarters. These communities were owned and had
                         stabilized occupancy and operating expenses as of the beginning of
                         the quarter in the prior year, were not in process of any
                         substantial redevelopment activities, and not held for disposition.
                          

Sequentially, the Company’s same-store NOI increased by 1.9 percent on revenue growth of 0.6 percent and a 2.6 percent decrease in expenses during the fourth quarter of 2015.

For the twelve months ended December 31, 2015, the Company’s same-store revenue increased 5.6 percent as compared to the prior year period in 2014. Same-store expenses increased 3.0 percent year-over-year resulting in a same-store NOI increase of 6.7 percent as compared to the prior year period in 2014. Year-over-year same-store physical occupancy remained stable at 96.7 percent and annual turnover increased 20 basis points to 51.9% compared to 2014.

Summary of Same-Store Results Full-Year 2015 versus Full-Year 2014

   Region       Revenue   Expense    NOI     % of Same-     Same-Store     Number of
                                   Growth                       Growth                      Growth                          Store                         Occupancy(2)                      Same-Store
                                                                                                                        Portfolio(1)                                                         Homes(3)
------------ -------------------- ------- -------------------- ------- -------------------- ------ -------------------- ------------ -------------------- ------------ -------------------- ----------
                                                                         
West                                 8.1%                         0.7%                       10.9%                             40.7%                             96.5%                          10,950
Mid-Atlantic                         1.7%                         4.1%                        0.7%                             23.0%                             96.6%                           8,048
Southeast                            6.0%                         3.3%                        7.3%                             14.9%                             97.1%                           7,683
Northeast                            5.6%                         6.6%                        5.3%                             13.8%                             97.3%                           2,384
Southwest         5.2%      3.9%     6.1%           7.6%          97.0%        3,998
------------ -------------------- ------- -------------------- ------- -------------------- ------ -------------------- ------------ -------------------- ------------ -------------------- ----------
Total             5.6%      3.0%     6.7%         100.0%          96.7%       33,063
------------ -------------------- ------- -------------------- ------- -------------------- ------ -------------------- ------------ -------------------- ------------ -------------------- ----------
(1)   Based on YTD 2015 NOI.
(2)                      Average same-store occupancy for YTD 2015.
(3)                      During the twelve months ended December 31, 2015, 33,063
                         apartment homes, or approximately 81% of 40,728 total consolidated
                         apartment homes, were classified as same-store. The Company
                         defines YTD SS Communities as those communities stabilized for two
                         full consecutive calendar years. These communities were owned and
                         had stabilized occupancy and operating expenses as of the
                         beginning of the prior year, were not in process of any
                         substantial redevelopment activities, and not held for disposition.
                          

Development Activity

At the end of the fourth quarter, the Company had an under-construction development pipeline for which its pro rata share totaled $670 million with 55 percent of the equity commitment funded. Of the $670 million in development projects left to complete, $162 million is expected to be completed in 2016, $166 million in 2017 and the balance in 2018. The development pipeline is currently expected to produce a weighted average spread between estimated stabilized yields and current market cap rates at or above the upper end of the Company’s 150 to 200 basis point targeted range.

In addition, the Company had preferred equity and participating loan investments for which its pro rata share totaled $364 million with 99 percent of the equity commitment funded. The $364 million consisted of a $93 million completed, non-stabilized project and $271 million of under construction projects. Of the $271 million in development projects left to complete, $215 million is expected to be completed in 2016 and the balance in 2017.

Transactional Activity

During the quarter, the Company disposed of nine wholly-owned communities containing 1,923 homes in Norfolk, VA, Huntington Beach, CA, Tampa, FL and Baltimore, MD for $299 million in total proceeds. Combined, the nine sales were transacted at a weighted average 5.8 percent cash flow cap rate, had a weighted average monthly rent per occupied home of $1,348 and were 38 years old on average.

Capital Markets

During the fourth quarter, the Company issued $565 million common UDR DownREIT units at $35 per unit in conjunction with the Washington, D.C. acquisition.

Additionally, the Company amended its unsecured revolving credit facility. The amendment increases the facility size from $900 million to $1.1 billion and extends the maturity date from December 2017 to January 2021, inclusive of a 1 year extension exercisable at the option of the borrower. Based on the Company’s current credit rating, the credit facility carries an interest rate equal to LIBOR plus a spread of 90 basis points, a reduction of 10 basis points from its previous agreement and the facility fee remains at 15 basis points.

In addition, the Company amended and consolidated its $350 million of term loans outstanding under the same facility. The loans were repriced to LIBOR plus 95 basis points from LIBOR plus 115 basis points and the maturity date was extended to January 2021.

Balance Sheet

At December 31, 2015, the Company had $987 million in availability through a combination of cash and undrawn capacity on its credit facilities.

The Company’s total indebtedness at December 31, 2015 was $3.6 billion. The Company ended the quarter with fixed-rate debt representing 83% of its total debt, a total weighted effective interest rate of 3.7% and a weighted average maturity of 5.0 years. The Company’s leverage was 34.6% versus 38.6% a year ago, net debt-to-EBITDA was 5.7x versus 6.5x a year ago and fixed charge coverage was 4.1x versus 3.6x a year ago.

Other

In conjunction with this release, the Company published its updated 2-Year Strategic Outlook which outlines its 2016 and 2017 plan and expectations. The 2-Year Strategic Outlook document is available in the Investor Relations section of the Company’s website at ir.udr.com.

Dividend

As previously announced, the Company’s Board of Directors declared a regular quarterly dividend on its common stock for the fourth quarter of 2015 in the amount of $0.2775 per share. The dividend was paid in cash on February 1, 2016 to UDR common stock shareholders of record as of January 11, 2016. The fourth quarter 2015 dividend represented the 173rd consecutive quarterly dividend paid by the Company on its common stock.

In conjunction with this release, the Company has declared a 2016 annualized dividend per share of $1.18, a 6% increase over 2015.

Outlook

For the first quarter of 2016, the Company has established the following guidance ranges:

FFO per share                        $0.42 to $0.44
FFO as Adjusted per share                                                                                        $0.42 to $0.44
AFFO per share                                                                                                   $0.40 to $0.42
                                                                                                               

For the full-year 2016, the Company has established the following guidance ranges:

FFO per share                        $1.75 to $1.81
FFO as Adjusted per share                                                                                        $1.75 to $1.81
AFFO per share                                                                                                   $1.59 to $1.65
                                                                                                               

For the full-year 2016, the Company’s primary same-store growth assumptions are:

Revenue                                   5.50% to 6.00%
Expense                                                                                                                                                                                                              3.00% to 3.50%
Net operating income                                                                                                                                                                                                 6.50% to 7.00%
Physical occupancy                                                                                                                                                                                                        96.6%
                                                                                                                                                                                                                   

Additional assumptions for the Company’s first quarter and full-year 2016 guidance can be found on Attachment 15 of the Company’s fourth quarter Supplemental Financial Information.

Supplemental Information

The Company offers Supplemental Financial Information that provides details on the financial position and operating results of the Company which is available on the Company’s website at ir.udr.com.

Conference Call and Webcast Information

UDR will host a webcast and conference call at 3:00 p.m. Eastern Time on February 3, 2016 to discuss fourth quarter and full-year results as well as its updated 2-Year Strategic Outlook for the 2016 to 2017 timeframe. The webcast will be available on UDR’s website at ir.udr.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.

To participate in the teleconference dial 844-855-7559 for domestic and 704-859-4562 for international and provide the following conference ID number: 14882417.

A replay of the conference call will be available through March 5, 2016, by dialing 800-585-8367 for domestic and 404-537-3406 for international and entering the confirmation number, 14882417, when prompted for the pass code.

A replay of the call will be available for 30 days on UDR’s website at ir.udr.com.

Full Text of the Earnings Report and Supplemental Data

Internet -- The full text of the earnings report and Supplemental Financial Information will be available on the Company’s website at ir.udr.com.

Mail -- For those without Internet access, the fourth quarter 2015 earnings report and Supplemental Financial Information will be available by mail or fax, on request. To receive a copy, please call UDR Investor Relations at 720-922-6082.

 
                                      Attachment 16(B)
 
                                          UDR, Inc.
                               Definitions and Reconciliations
                                      December 31, 2015
                                         (Unaudited)
 
Funds From Operations ("FFO") attributable to common stockholders
and unitholders: The Company defines FFO as net income
attributable to common stockholders and unitholders, excluding
impairment write-downs of depreciable real estate or of investments
in non-consolidated investees that are driven by measurable
decreases in the fair value of depreciable real estate held by the
investee, gains (or losses) from sales of depreciable property, plus
real estate depreciation and amortization, and after adjustments for
noncontrolling interests, unconsolidated partnerships and joint
ventures. This definition conforms with the National Association of
Real Estate Investment Trust’s definition issued in April 2002. In
the computation of diluted FFO, unvested restricted stock, stock
options, and the shares of Series E Cumulative Convertible Preferred
Stock are dilutive; therefore, they are included in the diluted
share count.
                                               
Activities of our taxable REIT subsidiary (TRS), include development
and land entitlement. From time to time, we develop and subsequently
sell a TRS property which results in a short-term use of funds that
produces a profit that differs from the traditional long-term
investment in real estate for REITs. We believe that the inclusion
of these TRS gains in FFO is consistent with the standards
established by NAREIT as the short-term investment is incidental to
our main business. TRS gains on sales, net of taxes, are defined as
net sales proceeds less a tax provision and the gross investment
basis of the asset before accumulated depreciation.
                                               
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. A reconciliation from net income
attributable to UDR, Inc. to FFO is provided on Attachment 2.
                                               
Held For Disposition Communities: The Company defines Held
for Disposition Communities as those communities that were held for
sale as of the end of the most recent quarter.
                                               
Interest Coverage Ratio: The Company defines Interest
Coverage Ratio as net income, excluding the impact of interest
expense, real estate depreciation and amortization of wholly owned
and joint venture communities, other depreciation and amortization,
noncontrolling interests, net gain on the sale of depreciable
property, TRS income tax, divided by total interest.
                                               
Management considers interest coverage ratio a useful metric for
investors as it provides ratings agencies, investors and lending
partners with a widely-used measure of the Company’s ability to
service its debt obligations as well as compare leverage against
that of its peer REITs. A reconciliation of the components that
comprise interest coverage ratio is provided on Attachment 4(C) of
the Company’s quarterly supplemental disclosure.
Joint Venture Reconciliation at UDR’s Weighted Average Pro-Rata
Ownership Interest
                                                                                                                    
In thousands                                                                         4Q 2015                                                                                    YTD 2015
                                                                -------------------------------------------------                                          --------------------------------------------------
Income/(loss) from unconsolidated entities                                         $  1,052                                                                                   $  62,329
  Management fee                                                                      1,103                                                                                       4,099
  Interest expense                                                                    7,925                                                                                      31,589
  Depreciation                                                                        9,389                                                                                      38,652
  General and administrative                                                            123                                                                                         820
  Other income/expense (includes 717 Olympic casualty expense)                       (2,030 )                                                                                    (7,293 )
  Gain on sale                                                      (372 )                                                                (59,445 )
                                                                -------------------- ------ --------------------                                           -------------------- ------- --------------------
Total Joint Venture NOI at UDR’s Pro-Rata Ownership Interest                       $ 17,190                                                                $  70,751  
                                                                ==================== ====== ====================                                           ==================== ======= ====================
JV Return on Equity ("ROE"): The Company defines JV
ROE as the pro rata share of property NOI plus property and asset
management fee revenue less interest expense, divided by the average
of beginning and ending equity capital for the quarter.
 
Management considers ROE a useful metric for investors as it
provides a widely used measure of how well the Company is investing
its capital on a leveraged basis.
                                                        
JV Return on Invested Capital ("ROIC"): The Company
defines JV ROIC as the pro rata share of property NOI plus property
and asset management fee revenue divided by the average of beginning
and ending invested capital for the quarter.
                                                        
Management considers ROIC a useful metric for investors as it
provides a widely used measure of how well the Company is investing
its capital on an unleveraged basis.
                                                        
Net Debt to EBITDA: The Company defines net debt to EBITDA as
total debt net of cash and cash equivalents divided by EBITDA.
EBITDA is defined as net income, excluding the impact of interest
expense, real estate depreciation and amortization of wholly owned
and other joint venture communities, other depreciation and
amortization, noncontrolling interests, net gain on the sale of
depreciable property, and TRS income tax.
                                                        
Management considers net debt to EBITDA a useful metric for
investors as it provides ratings agencies, investors and lending
partners with a widely-used measure of the Company’s ability to
service its debt obligations as well as compare leverage against
that of its peer REITs. A reconciliation between net income and
EBITDA is provided on Attachment 4(C) of the Company’s quarterly
supplemental disclosure.
                                                        
Net Operating Income ("NOI"): The Company defines NOI as
rental income less direct property rental expenses. Rental income
represents gross market rent less adjustments for concessions,
vacancy loss and bad debt. Rental expenses include real estate
taxes, insurance, personnel, utilities, repairs and maintenance,
administrative and marketing. Excluded from NOI is property
management expense which is calculated as 2.75% of property revenue
to cover the regional supervision and accounting costs related to
consolidated property operations, and land rent.
                                                        
Management considers NOI a useful metric for investors as it is a
more meaningful representation of a community’s continuing operating
performance than net income as it is prior to corporate-level
expense allocations, general and administrative costs, capital
structure and depreciation and amortization and is a widely used
input, along with capitalization rates, in the determination of real
estate valuations. A reconciliation from net income attributable to
UDR, Inc. to NOI is provided below.
In thousands                                                                             4Q 2015                                                  3Q 2015                                                 2Q 2015                                                         1Q 2015                                                 4Q 2014                        
                                                                                                         ----------------------------------------------------------------------- -------------------- -------------------- ---------------------------------------------------------------------- -------------------- -------------------- ---------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------------------------- -------------------- -------------------- --------------------------------------------------
Net income/(loss) attributable to UDR, Inc.                                                                                 $  162,200                                               $  13,291                                               $  86,855                                                       $  73,822                                               $  65,417
  Property management                                                                                                            6,445                                                                                                            5,988                                                                                                            5,851                                                                                                                                                                                                5,694                                                                                                            5,668
  Other operating expenses                                                                                                       3,534                                                                                                            2,639                                                                                                            1,769                                                                                                                                                                                                1,766                                                                                                            2,174
  Real estate depreciation and amortization                                                                                    104,909                                                                                                           90,568                                                                                                           90,344                                                                                                                                                                                               88,777                                                                                                           91,406
  Interest expense                                                                                                              33,170                                                                                                           30,232                                                                                                           29,673                                                                                                                                                                                               28,800                                                                                                           32,792
  Casualty-related (recoveries)/charges, net                                                                                       (45 )                                                                                                            541                                                                                                              843                                                                                                                                                                                                  996                                                                                                               41
  General and administrative                                                                                                    17,993                                                                                                           15,824                                                                                                           13,721                                                                                                                                                                                               12,152                                                                                                           11,722
  Tax provision/(benefit), net (includes valuation adjustment)                                                                  (1,424 )                                                                                                           (633 )                                                                                                         (1,404 )                                                                                                                                                                                               (425 )                                                                                                         (7,087 )
  Income/(loss) from unconsolidated entities                                                                                    (1,052 )                                                                                                         (2,691 )                                                                                                            573                                                                                                                                                                                              (59,159 )                                                                                                          2,074
  Interest and other income, net                                                                                                  (407 )                                                                                                           (402 )                                                                                                           (382 )                                                                                                                                                                                               (360 )                                                                                                             44
  Joint venture management and other fees                                                                                       (3,253 )                                                                                                         (3,653 )                                                                                                         (3,098 )                                                                                                                                                                                            (12,706 )                                                                                                         (3,445 )
  Other depreciation and amortization                                                                                            1,899                                                                                                            1,457                                                                                                            1,700                                                                                                                                                                                                1,623                                                                                                            2,117
  (Income)/loss from discontinued operations, net of tax                                                                             -                                                                                                                -                                                                                                                -                                                                                                                                                                                                    -                                                                                                                -
  (Gain)/loss on sale of real estate owned, net of tax                                                                        (172,635 )                                                                                                              -                                                                                                          (79,042 )                                                                                                                                                                                                  -                                                                                                          (61,267 )
  Net income/(loss) attributable to noncontrolling interests                                                 14,963               404             3,029                     2,595             2,335  
                                                                                                         -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- --------------------
Total consolidated NOI                                                                                                      $  166,297                            $ 153,565                            $ 150,432                                    $ 143,575                            $ 143,991  
                                                                                                         ==================== ======== ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

Forward-Looking Statements

Certain statements made in this press release may constitute "forward-looking statements." Words such as "expects," "intends," "believes," "anticipates," "plans," "likely," "will," "seeks," "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors, which include, but are not limited to, unfavorable changes in the apartment market, changing economic conditions, the impact of inflation/deflation on rental rates and property operating expenses, expectations concerning availability of capital and the stabilization of the capital markets, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule, expectations on job growth, home affordability and demand/supply ratio for multifamily housing, expectations concerning development and redevelopment activities, expectations on occupancy levels, expectations concerning the joint ventures with third parties, expectations that automation will help grow net operating income, expectations on annualized net operating income and other risk factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time, including the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking statements. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company’s expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the U.S. securities laws.

This press release and these forward-looking statements include UDR’s analysis and conclusions and reflect UDR’s judgment as of the date of these materials. UDR assumes no obligation to revise or update to reflect future events or circumstances.

About UDR, Inc.

UDR, Inc. (UDR ), an S&P 400 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of December 31, 2015, UDR owned or had an ownership position in 50,646 apartment homes including 3,222 homes under development. For over 43 years, UDR has delivered long-term value to shareholders, the best standard of service to residents and the highest quality experience for associates. Additional information can be found on the Company’s website at ir.udr.com.

                                                                                                                                                                                                                                        
                                                                                                                                                                                                                    Attachment 1
                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                      UDR, Inc.
                                                                                                                                                                                                      Consolidated Statements of Operations (1)
                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                               Three Months Ended                                                                                                                                                                                  Twelve Months Ended
                                                                                                                                                                   December 31                                                                                                                                                                      December 31
                                                                                                            ---------------------------------------------------------------------------------------------------------------------------------------------                                           ------------------------------------------------------------------------------------------------------------------------------------------------
In thousands, except per share amounts                                    2015            2014            2015             2014    
----------------------------------------------------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
REVENUES:
Rental income                                                                                                                  $ 234,352                                                                                   $ 206,104                                                                                   $  871,928                                                                                   $  805,002
Joint venture management and other fees (2)                                                                     3,253                                                 3,445                                                 22,710                                                 13,044  
                                                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
  Total revenues                                                                                              237,605                                               209,549                                                894,638                                                818,046  
                                                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
OPERATING EXPENSES:
Property operating and maintenance                                                                                                41,174                                                                                      36,782                                                                                      155,096                                                                                      149,428
Real estate taxes and insurance                                                                                                   26,881                                                                                      25,331                                                                                      102,963                                                                                       99,175
Property management                                                                                                                6,445                                                                                       5,668                                                                                       23,978                                                                                       22,138
Other operating expenses                                                                                                           3,534                                                                                       2,174                                                                                        9,708                                                                                        8,271
Real estate depreciation and amortization                                                                                        104,909                                                                                      91,406                                                                                      374,598                                                                                      358,154
Acquisition costs                                                                                                                  1,433                                                                                         107                                                                                        2,126                                                                                          373
General and administrative                                                                                                        16,560                                                                                      11,615                                                                                       57,564                                                                                       47,427
Casualty-related (recoveries)/charges, net                                                                                           (45 )                                                                                        41                                                                                        2,335                                                                                          541
Other depreciation and amortization                                                                             1,899                                                 2,117                                                  6,679                                                  5,775  
                                                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
  Total operating expenses                                                                                    202,790                                               175,241                                                735,047                                                691,282  
                                                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Operating income                                                                                                                  34,815                                                                                      34,308                                                                                      159,591                                                                                      126,764
                                                                                                                                                                                                                                                                                                                                                                                                  
Income/(loss) from unconsolidated entities (2)                                                                                     1,052                                                                                      (2,074 )                                                                                     62,329                                                                                       (7,006 )
                                                                                                                                                                                                                                                                                                                                                                                                  
Interest expense                                                                                                                 (33,170 )                                                                                   (32,792 )                                                                                   (121,875 )                                                                                   (130,262 )
Other debt (charges)/benefits, net                                                                                  -                                                     -                                                      -                                                   (192 )
                                                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
  Total interest expense                                                                                                         (33,170 )                                                                                   (32,792 )                                                                                   (121,875 )                                                                                   (130,454 )
Interest income and other income/(expense), net                                                                   407                                                   (44 )                                                                   1,551                                                 11,858  
                                                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Income/(loss) before income taxes, discontinued operations and                                                                     3,104                                                                                        (602 )                                                                                    101,596                                                                                        1,162
gain/(loss) on sale of real estate owned
Tax benefit/(provision), net                                                                                    1,424                                                 7,087                                                  3,886                                                 15,098  
                                                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Income/(loss) from continuing operations                                                                                           4,528                                                                                       6,485                                                                                      105,482                                                                                       16,260
Income/(loss) from discontinued operations, net of tax                                                              -                                                     -                                                      -                                                     10  
                                                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Income/(loss) before gain/(loss) on sale of real estate owned                                                                      4,528                                                                                       6,485                                                                                      105,482                                                                    16,270
Gain/(loss) on sale of real estate owned, net of tax                                                          172,635                                                61,267                                                251,677                                                143,572  
                                                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Net income/(loss)                                                                                                                177,163                                                                                      67,752                                                                                      357,159                                                                   159,842
Net (income)/loss attributable to redeemable noncontrolling                                                                      (14,966 )                                                                                    (2,340 )                                                                                    (16,773 )                                                                                     (5,511 )
interests in the OP and DownREIT Partnership (3) (4)
Net (income)/loss attributable to noncontrolling interests                                                          3                                                     5                                                     (3 )                                                                       3  
                                                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Net income/(loss) attributable to UDR, Inc.                                                                                      162,200                                                                                      65,417                                                                                      340,383                                                                                      154,334
Distributions to preferred stockholders - Series E (Convertible)                                                 (930 )                                                                   (931 )                                                                  (3,722 )                                                                  (3,724 )
                                                                                                            -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Net income/(loss) attributable to common stockholders                                                                          $ 161,270                                                                $  64,486                                                                $  336,661                                                                $  150,610  
                                                                                                            ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                  
Income/(loss) per weighted average common share - basic:
Income/(loss) from continuing operations attributable to common                                                                $    0.62                                                                                   $    0.25                                                                                   $     1.30                                                                                   $     0.60
stockholders
Income/(loss) from discontinued operations attributable to common                                                              $    0.00                                                                                   $    0.00                                                                                   $     0.00                                                                                   $     0.00
stockholders
Net income/(loss) attributable to common stockholders                                                                          $    0.62                                                                                   $    0.25                                                                                   $     1.30                                                                                   $     0.60
                                                                                                                                                                                                                                                                                                                                                                                                  
Income/(loss) per weighted average common share - diluted:
Income/(loss) from continuing operations attributable to common                                                                $    0.61                                                                                   $    0.25                                                                                   $     1.29                                                                                   $     0.59
stockholders
Income/(loss) from discontinued operations attributable to common                                                              $    0.00                                                                                   $    0.00                                                                                   $     0.00                                                                                   $     0.00
stockholders
Net income/(loss) attributable to common stockholders                                                                          $    0.61                                                                                   $    0.25                                                                                   $     1.29                                                                                   $     0.59
                                                                                                                                                                                                                                                                                                                                                                                                  
Common distributions declared per share                                                                                        $  0.2775                                                                                   $  0.2600                                                                                   $   1.1100                                                                                   $   1.0400
                                                                                                                                                                                                                                                                                                                                                                                                  
Weighted average number of common shares outstanding - basic                                                                     260,830                                                                                     253,983                                                                                      258,669                                                                                      251,528
Weighted average number of common shares outstanding - diluted                                                                   266,108                                                                                     256,000                                                                                      263,752                                                                                      253,445
(1) See Attachment 16 for definitions and other terms.
(2) In January 2015, the eight communities held by the Texas
joint venture were sold, generating proceeds to UDR of $44.2
million. The Company recorded promote and disposition fee income
of approximately $0.4 million and $10.0 million and a gain of
approximately $0.4 million and $59.4 million in connection with
the sale during the three and twelve months ended December 31,
2015.
(3) In October 2015, UDR completed the acquisition of six
Washington, DC area communities from Home Properties, L.P. for a
total purchase price of $901 million. Four of the six communities
were acquired through UDR’s 50.1% ownership in newly formed UDR
Lighthouse DownREIT L.P. (the "DownREIT Partnership"). The
increase in the percentage of net income attributable to
noncontrolling interests during the 4th quarter relates to third
parties’ 49.9% interest in the DownREIT Partnership.
(4) Due to the quarterly pro-rata calculation of
noncontrolling interest, the sum of the quarterly amounts will not
equal the annual totals.
 
                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                         Attachment 2
                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                           UDR, Inc.
                                                                                                                                                                                                                   Funds From Operations (1)
                                                                                                                                                                                                                          (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                   Three Months Ended                                                                                                                                                                        Twelve Months Ended
                                                                                                                                                                                       December 31                                                                                                                                                                               December 31
                                                                                                                     -----------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------
In thousands, except per share amounts                                             2015             2014            2015             2014    
-------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                            
Net income/(loss) attributable to common stockholders                                                                                   $  161,270                                                                                   $  64,486                                                                                   $  336,661                                                                                   $  150,610
                                                                                                                                                                                                                                                                                                                                                                                                            
    Real estate depreciation and amortization, including discontinued                                                                      104,909                                                                                      91,406                                                                                      374,598                                                                                      358,154
    operations
    Noncontrolling interests (2)                                                                                                            14,963                                                                                       2,335                                                                                       16,776                                                                                        5,508
    Real estate depreciation and amortization on unconsolidated joint                                                                        9,389                                                                                      12,207                                                                                       38,652                                                                                       42,133
    ventures
    Net (gain)/loss on the sale of unconsolidated depreciable property (3)                                                                    (372 )                                                                                         -                                                                                      (59,445 )                                                                                          -
    Net (gain)/loss on the sale of depreciable property, excluding TRS                                                 (172,635 )                                                                (63,443 )                                                                (251,677 )                                                                (144,703 )
                                                                                                                     -------------------- -------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
Funds from operations ("FFO") attributable to common stockholders                                                                       $  117,524                                                                $ 106,991                                                                $  455,565                                                                $  411,702  
and unitholders, basic
                                                                                                                     ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
  Distributions to preferred stockholders - Series E (Convertible)                                                                             930                                                                                         931                                                                                        3,722                                                                                        3,724
  (4)
                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                     ---------------------------------------------------                                          --------------------------------------------------                                          ---------------------------------------------------                                          ---------------------------------------------------
FFO attributable to common stockholders and unitholders, diluted                                                                        $  118,454                                                                $ 107,922                                                                $  459,287                                                                $  415,426  
                                                                                                                     ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
FFO per common share and unit, basic                                                                                                    $     0.41                                                                $    0.41                                                                $     1.68                                                                $     1.58  
                                                                                                                     ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
FFO per common share and unit, diluted                                                                                                  $     0.41                                                                $    0.40                                                                $     1.66                                                                $     1.56  
                                                                                                                     ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
Weighted average number of common shares and OP/DownREIT Units                                                          285,144                                               263,149                                                271,616                                                260,775  
outstanding - basic
                                                                                                                     -------------------- -------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
Weighted average number of common shares, OP/DownREIT Units, and
common stock
  equivalents outstanding - diluted                                                                                     290,422                                               268,201                                                276,699                                                265,728  
                                                                                                                     -------------------- -------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                            
Impact of adjustments to FFO:
  Acquisition-related costs/(fees), including joint ventures (5)                                                                        $    1,433                                                                                   $     264                                                                                   $    3,586                                                                                   $      442
  Cost/(benefit) associated with debt extinguishment and other                                                                                   -                                                                                           -                                                                                            -                                                                                          192
  Texas Joint Venture promote and disposition fee income (3)                                                                                  (372 )                                                                                         -                                                                                      (10,005 )                                                                                          -
  Long-term incentive plan transition costs                                                                                                    884                                                                                           -                                                                                        3,537                                                                                            -
  (Gain)/loss on sale of land                                                                                                                    -                                                                                       2,176                                                                                            -                                                                                        1,056
  Net gain on prepayment of note receivable                                                                                                      -                                                                                           -                                                                                            -                                                                                       (8,411 )
  Legal claims, net of tax                                                                                                                     705                                                                                           -                                                                                          705                                                                                            -
  Tax benefit associated with the conversion of certain TRS entities                                                                             -                                                                                      (5,770 )                                                                                          -                                                                                       (5,770 )
  into REITs (6)
  Casualty-related (recoveries)/charges, including joint ventures, net (7)                                                2,173                                                    41                                                  4,809                                                    541  
                                                                                                                     -------------------- -------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                        $    4,823                                                                $  (3,289 )                                                                                 $    2,632                                                                $  (11,950 )
                                                                                                                     -------------------- -------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                     ---------------------------------------------------                                          --------------------------------------------------                                          ---------------------------------------------------                                          ---------------------------------------------------
FFO as Adjusted attributable to common stockholders and                                                                                 $  123,277                                                                $ 104,633                                                                $  461,919                                                                $  403,476  
unitholders, diluted
                                                                                                                     ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
FFO as Adjusted per common share and unit, diluted                                                                                      $     0.42                                                                $    0.39                                                                $     1.67                                                                $     1.52  
                                                                                                                     ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
Recurring capital expenditures                                                                                          (14,419 )                                                                (13,944 )                                                                 (45,467 )                                                                 (43,921 )
                                                                                                                     -------------------- -------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
AFFO attributable to common stockholders and unitholders                                                                                $  108,858                                                                $  90,689                                                                $  416,452                                                                $  359,555  
                                                                                                                     ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                            
AFFO per common share and unit, diluted                                                                                                 $     0.37                                                                $    0.34                                                                $     1.51                                                                $     1.35  
                                                                                                                     ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
(1) See Attachment 16 for definitions and other terms.
(2) See Note 3 in Attachment 1.
(3) In January 2015, the eight communities held by the Texas
joint venture were sold, generating proceeds to UDR of $44.2
million. The Company recorded promote and disposition fee income
of approximately $0.4 million and $10.0 million and a gain of
approximately $0.4 million and $59.4 million in connection with
the sale during the three and twelve months ended December 31,
2015.
(4) Series E preferred shares are dilutive for purposes of
calculating FFO per share. Consequently, distributions to Series E
preferred shareholders are added to FFO and the weighted average
number of shares are included in the denominator when calculating
FFO per common share and unit, diluted.
(5) Twelve months ended December 31, 2015 acquisition-related
costs include $1.5 million related to UDR’s share of the West
Coast Development joint venture’s transaction expenses, which are
recorded as income/(loss) from unconsolidated entities in
Attachment 1.
(6) During 4Q14, the Company recognized a one-time tax
benefit of $5.8 million related to the conversion of certain
taxable REIT subsidiary entities into REIT’s.
(7) Casualty-related charges for the three and twelve months
ended December 31, 2015 include $2.2 million and $2.5 million
related to UDR’s share of the 717 Olympic casualty, which is
included in income/(loss) from unconsolidated entities in
Attachment 1.
 
                                                                                                                                  
                                                                                                                            Attachment 3
                                                                                                                                                                                                                
                                                                                                                                                                                                                
                                                                                                                              UDR, Inc.
                                                                                                                     Consolidated Balance Sheets
                                                                                                                             (Unaudited)
                                                                                                                                                                                                                
                                                                                                                                    December 31,                                                                                   December 31,
In thousands, except share and per share amounts                                                  2015                                                     2014
--------------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------------------- -------------------- -----------------------------------------------------
                                                                                                                                                                                                                
                                                                                                                                                                                                                
ASSETS
                                                                                                                                                                                                                
Real estate owned:
  Real estate held for investment                                                                                                  $  9,053,599                                                                                   $  8,205,627
    Less: accumulated depreciation                                                                                (2,646,044 )                                                                (2,434,772 )
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
   Real estate held for investment, net                                                                                               6,407,555                                                                                      5,770,855
  Real estate under development
    (net of accumulated depreciation of $0 and $0)                                                                                      124,072                                                                                        177,632
  Real estate held for disposition
    (net of accumulated depreciation of $830 and $0)                                                                  11,775                                                        -  
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total real estate owned, net of accumulated depreciation                                                                              6,543,402                                                                                      5,948,487
                                                                                                                                                                                                                
  Cash and cash equivalents                                                                                                               6,742                                                                                         15,224
  Restricted cash                                                                                                                        20,798                                                                                         22,340
  Notes receivable, net                                                                                                                  16,694                                                                                         14,369
  Investment in and advances to unconsolidated joint ventures, net                                                                      938,906                                                                                        718,226
  Other assets                                                                                                       141,663                                                  110,082  
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total assets                                                                                                                       $  7,668,205                                                                $  6,828,728  
                                                                                                                ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                
LIABILITIES AND EQUITY
                                                                                                                                                                                                                
Liabilities:
  Secured debt (1)                                                                                                                 $  1,376,945                                                                                   $  1,354,321
  Unsecured debt (1)                                                                                                                  2,193,850                                                                                      2,210,978
  Real estate taxes payable                                                                                                              18,786                                                                                         15,978
  Accrued interest payable                                                                                                               29,162                                                                                         34,215
  Security deposits and prepaid rent                                                                                                     36,330                                                                                         34,064
  Distributions payable                                                                                                                  80,368                                                                                         69,460
  Accounts payable, accrued expenses, and other liabilities                                                           85,717                                                   91,282  
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total liabilities                                                                                                                     3,821,158                                                                                      3,810,298
                                                                                                                                                                                                                
Redeemable noncontrolling interests in the OP and DownREIT                                                                              946,436                                                                                        282,480
Partnership
                                                                                                                                                                                                                
Equity:
  Preferred stock, no par value; 50,000,000 shares authorized
    2,796,903 shares of 8.00% Series E Cumulative Convertible issued
      and outstanding (2,803,812 shares at December 31, 2014)                                                                            46,457                                                                                         46,571
    16,452,496 shares of Series F outstanding (2,464,183 shares
      at December 31, 2014)                                                                                                                   1                                                                                              -
  Common stock, $0.01 par value; 350,000,000 shares authorized
     261,844,521 shares issued and outstanding (255,114,603 shares at                                                                     2,618                                                                                          2,551
     December 31, 2014)
  Additional paid-in capital                                                                                                          4,447,816                                                                                      4,223,747
  Distributions in excess of net income                                                                                              (1,584,459 )                                                                                   (1,528,917 )
  Accumulated other comprehensive income/(loss), net                                                                 (12,678 )                                                                    (8,855 )
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total stockholders’ equity                                                                                                            2,899,755                                                                                      2,735,097
  Noncontrolling interests                                                                                               856                                                      853  
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total equity                                                                                                       2,900,611                                                2,735,950  
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total liabilities and equity                                                                                                       $  7,668,205                                                                $  6,828,728  
                                                                                                                ==================== ========== ====================                                           ==================== ========== ====================
(1) During 4Q15, UDR retroactively adopted Accounting
Standards Update ("ASU") 2015-3, Simplifying the
Presentation of Debt Issuance Costs and related ASU 2015-15,
which resulted in classifying approximately $17.9 million and
$17.8 million of deferred financing costs as a direct reduction to
debt outstanding as of December 31, 2015 and 2014, respectively.
 
 
                                                                                                            Attachment 4(C)
                                                                                                                         
                                                                                                                                                                                    
                                                                                                               UDR, Inc.
                                                                                                  Selected Financial Information (1)
                                                                                                              (Unaudited)
                                                                                                                                                                                    
                                                                                                                                                                                                       Quarter Ended
Coverage Ratios                                                 December 31, 2015
---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------------------------------------------
                                                                                                                                                                                    
Net income/(loss) attributable to UDR, Inc.                                                                                                                                                           $   162,200
                                                                                                                                                                                    
Adjustments (includes continuing and discontinued operations):
   Interest expense                                                                                                                                                                                        33,170
   Real estate depreciation and amortization                                                                                                                                                              104,909
   Real estate depreciation and amortization on unconsolidated joint                                                                                                                                        9,389
   ventures
   Other depreciation and amortization                                                                                                                                                                      1,899
   Noncontrolling interests                                                                                                                                                                                14,963
   Income tax expense/(benefit)                                                                                                                                                         (1,424 )
                                                                                                                                                                                   -------------------- --------- --------------------
EBITDA                                                                                                                                                                                                $   325,106  
                                                                                                                                                                                   -------------------- --------- --------------------
                                                                                                                                                                                    
   (Gain)/loss on sale of real estate owned, net of tax                                                                                                                                                  (172,635 )
   Net (gain)/loss on the sale of unconsolidated depreciable property                                                                                                                                        (372 )
   Long-term incentive plan transition costs                                                                                                                                                                  884
   Acquisition-related costs/(fees), including joint ventures                                                                                                                                               1,433
   Legal claims, net of tax                                                                                                                                                                                   705
   Texas Joint Venture promote and disposition fee income                                                                                                                                                    (372 )
   Casualty-related (recoveries)/charges, including joint ventures, net                                                                                                                  2,173  
                                                                                                                                                                                   -------------------- --------- --------------------
EBITDA - adjusted for non-recurring items                                                                                                                                                             $   156,922  
                                                                                                                                                                                   ==================== ========= ====================
                                                                                                                                                                                    
                                                                                                                                                                                   ----------------------------------------------------
Annualized EBITDA - adjusted for non-recurring items                                                                                                                                                  $   627,688  
                                                                                                                                                                                   -------------------- --------- --------------------
                                                                                                                                                                                    
   Interest expense                                                                                                                                                                                   $    33,170
   Capitalized interest expense                                                                                                                                                          3,918  
                                                                                                                                                                                   -------------------- --------- --------------------
Total interest                                                                                                                                                                                        $    37,088
                                                                                                                                                                                    
Preferred dividends                                                                                                                                                                                   $       930
                                                                                                                                                                                    
   Total debt (4)                                                                                                                                                                                     $ 3,570,795
   Cash                                                                                                                                                                                  6,742  
                                                                                                                                                                                   -------------------- --------- --------------------
Net debt                                                                                                                                                                                              $ 3,564,053  
                                                                                                                                                                                   -------------------- --------- --------------------
                                                                                                                                                                                    
                                                                                                                                                                                    
Interest Coverage Ratio                                                                                                                                                                                                          8.77x
                                                                                                                                                                                   ====================================================
                                                                                                                                                                                    
Fixed Charge Coverage Ratio                                                                                                                                                                                                      8.55x
                                                                                                                                                                                   ====================================================
                                                                                                                                                                                    
                                                                                                                                                                                    
Interest Coverage Ratio - adjusted for non-recurring items                                                                                                                                                                       4.23x
                                                                                                                                                                                   ====================================================
                                                                                                                                                                                    
Fixed Charge Coverage Ratio - adjusted for non-recurring items                                                                                                                                                                   4.13x
                                                                                                                                                                                   ====================================================
                                                                                                                                                                                    
Net Debt-to-EBITDA - adjusted for non-recurring items                                                                                                                                                                             5.7x
                                                                                                                                                                                   ====================================================
                                                                                                        
---------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------------
                                                                                                                                
Debt Covenant Overview
   
Unsecured Line of Credit Covenants (2)                                                                  Required                      Actual             Compliance
--------------------------------------------------------------------------------------------------------- -------------------- -------------------- ---------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                
Maximum Leverage Ratio                                                                                                                                less-than or equal to60.0%                                                                      34.8%                                                                         Yes
Minimum Fixed Charge Coverage Ratio                                                                                                                   greater-than or equal to1.5                                                                       3.4                                                                         Yes
Maximum Secured Debt Ratio                                                                                                                            less-than or equal to40.0%                                                                      17.4%                                                                         Yes
Minimum Unencumbered Pool Leverage Ratio                                                                                                            greater-than or equal to150.0%                                                                   369.3%                                                                         Yes
                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                
Senior Unsecured Note Covenants (3)                                                                     Required                      Actual             Compliance
--------------------------------------------------------------------------------------------------------- -------------------- -------------------- ---------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                
Debt as a percentage of Total Assets                                                                                                                  less-than or equal to60.0%                                                                      34.8%                                                                         Yes
Consolidated Income Available for Debt Service to Annual Service                                                                                      greater-than or equal to1.5                                                                       4.4                                                                         Yes
Charge
Secured Debt as a percentage of Total Assets                                                                                                          less-than or equal to40.0%                                                                      13.4%                                                                         Yes
Total Unencumbered Assets to Unsecured Debt                                                                                                         greater-than or equal to150.0%                                                                   317.0%                                                                         Yes
                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                
Securities Ratings                                                  Debt                       Preferred             Outlook
--------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                
Moody’s Investors Service                                                                                                                                          Baa1                                                                                  Baa2                                                                         Stable
Standard & Poor’s                                                                                                                                                  BBB+                                                                                   BB+                                                                         Stable
(1)   See Attachment 16 for definitions and other terms.
(2)                      As defined in our credit agreement dated October 20, 2015.
(3)                      As defined in our indenture dated November 1, 1995 as
                         amended, supplemented or modified from time to time.
(4)                      Total debt includes approximately $17.9 million of deferred
                         financing costs, which are reflected as a direct reduction to debt
                         outstanding as of December 31, 2015.
                          
     
                          Attachment 16(D)
                                               
                                               
                              UDR, Inc.
                   Definitions and Reconciliations
                          December 31, 2015
                             (Unaudited)
                                               
All guidance is based on current expectations of future economic
conditions and the judgment of the Company’s management team. The
following reconciles from GAAP net income/(loss) per share for full
year 2016 and first quarter of 2016 to forecasted FFO, FFO as
Adjusted and AFFO per share and unit:
 
                                                                                                             
                                                                                                                                                                         Full Year 2016
                                                                                                                                            Low                                                                 High
                                                                                                                     ------------------------------------------------                     -------------------------------------------------
                                                                                                                                                                                           
Forecasted earnings per diluted share                                                                                                   $  0.37                                                              $   0.44
Conversion from GAAP share count                                                                                                          (0.16 )                                                               (0.17 )
Depreciation                                                                                                                               1.54                                                                  1.54
Noncontrolling interests                                                                                                                  (0.01 )                                                               (0.01 )
Preferred dividends                                                                                                     0.01                            0.01  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted FFO per diluted share and unit                                                                                               $  1.75                                           $   1.81  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Disposition-related FFO                                                                                                                   (0.01 )                                                               (0.01 )
Long-term incentive plan transition costs                                                                               0.01                            0.01  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted FFO as Adjusted per diluted share and unit                                                                                   $  1.75                                           $   1.81  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Recurring capital expenditures                                                                                         (0.16 )                                            (0.16 )
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted AFFO per diluted share and unit                                                                                              $  1.59                                           $   1.65  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                           
                                                                                                                                                                                           
                                                                                                                                                                                           
                                                                                                                                                                             1Q 2016
                                                                                                                                            Low                                                                 High
                                                                                                                     ------------------------------------------------                     -------------------------------------------------
                                                                                                                                                                                           
Forecasted earnings per diluted share                                                                                                   $  0.07                                                              $   0.09
Conversion from GAAP share count                                                                                                          (0.04 )                                                               (0.04 )
Depreciation                                                                                                                               0.39                                                                  0.39
Noncontrolling interests                                                                                                                      -                                                                     -
Preferred dividends                                                                                                        -                               -  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted FFO per diluted share and unit                                                                                               $  0.42                                           $   0.44  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Disposition-related FFO                                                                                                                       -                                                                     -
Long-term incentive plan transition costs                                                                                  -                               -  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted FFO as Adjusted per diluted share and unit                                                                                   $  0.42                                           $   0.44  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Recurring capital expenditures                                                                                         (0.02 )                                            (0.02 )
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted AFFO per diluted share and unit                                                                                              $  0.40                                           $   0.42  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                       

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160202006615r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160202006615/en/

SOURCE: UDR, Inc.

UDR, Inc. 
Shelby Noble, 720-922-6082


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