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 UDR Announces Fourth Quarter and Full-Year 2016 Results
   Monday, January 30, 2017 4:16:01 PM ET

UDR (the "Company") Fourth Quarter 2016 Highlights:

-- Net income per share was $0.88, Funds from Operations ("FFO") per share was $0.47, FFO as Adjusted per share was $0.46, and Adjusted Funds from Operations ("AFFO") per share was $0.40.

-- Net income attributable to common stockholders was $236.7 million as compared to $161.3 million in the prior year period. The increase was primarily due to higher gains on the sale of real estate.

-- Year-over-year same-store ("SS") revenue, expense and net operating income ("NOI") growth for the quarter were 5.0 percent, 4.2 percent and 5.3 percent.

-- The UDR/MetLife JV completed construction on 3033 Wilshire, a 190-home community in Los Angeles.



-- The West Coast Development JV completed construction on OLiVE DTLA, a 293-home community in Los Angeles.

-- The UDR/MetLife JV commenced construction on Vitruvian West, a 383-home community in Addison, TX.

-- Acquired Milehouse, a 177-home community in Redmond, WA through a 1031 exchange.

-- Subsequent to quarter end, acquired CityLine, a 244-home West Coast Development JV community in Seattle.

-- Completed the acquisition of MetLife’s 50 percent interest in Ten20 and Ashton Bellevue, two adjacent communities comprising 331 homes in Bellevue, WA through 1031 exchanges.

-- Completed the disposition of eight communities comprising 1,782 homes in Baltimore and Dallas.

-- Subsequent to quarter end, established a $500.0 million unsecured U.S. commercial paper program.

Full-Year 2016 Highlights:

-- Net income per share was $1.08, FFO per share was $1.80, FFO as Adjusted per share was $1.79, and AFFO per share was $1.63.

-- Net income attributable to common stockholders was $289.0 million as compared to $336.7 million in the prior year period. The decrease was primarily due to lower gains on the sale of real estate.

-- Increased the Company’s declared dividend per share to $1.18 (+6% year-over-year).

-- Year-over-year SS revenue, expense and NOI growth were 5.7 percent, 3.7 percent and 6.5 percent.

-- Completed construction on two UDR/MetLife JV and four West Coast Development JV projects comprising 1,784 homes in San Francisco, Los Angeles, Seattle and Anaheim, CA.

-- Commenced construction on three communities, including two UDR/MetLife JV communities, comprising 1,118 homes in Boston, Los Angeles and Addison, TX.

-- Acquired three communities comprising 508 homes in the Seattle MSA through 1031 exchanges.

-- Sold nine communities, including one UDR/MetLife community, comprising 2,034 homes in Baltimore and Dallas.

-- Issued $173.6 million of common equity in conjunction with the Company’s inclusion in the S&P 500 index.

-- Issued $300.0 million of 10-year unsecured debt at 2.95 percent.

                                                                                                                                                                                                                                   
                                                                       Q4 2016                                              Q4 2015                                              FY 2016                                              FY 2015
---------------------------------------------------------------- -------------------- -------------------- --------------------------------------------------------------------- -------------------- --------------------------------------------------------------------- -------------------- --------------------------------------------------------------------- -------------------- -------------------------------------------------
Net income per common share, diluted                                                    $   0.88                          $   0.61                          $   1.08                          $   1.29  
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
Conversion from GAAP share count                                                                                                (0.046 )                                                                                   (0.041 )                                                                                   (0.189 )                                                                                   (0.096 )
Net gain on the sale of depreciable real estate owned                                                                           (0.872 )                                                                                   (0.650 )                                                                                   (0.961 )                                                                                   (1.180 )
Depreciation and amortization                                                                                                    0.426                                                                                      0.430                                                                                      1.749                                                                                      1.567
Noncontrolling interests and preferred dividends                        0.085          0.060          0.117          0.078  
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
FFO per common share and unit, diluted                                                  $   0.47                          $   0.41                          $   1.80                          $   1.66  
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
Acquisition-related costs/(fees), including JVs                                                                                  0.001                                                                                      0.005                                                                                      0.001                                                                                      0.013
Cost/(benefit) associated with debt extinguishment, other                                                                            -                                                                                          -                                                                                      0.006                                                                                          -
Texas Joint Venture promote and disposition fee income                                                                               -                                                                                     (0.001 )                                                                                        -                                                                                     (0.036 )
Long-term incentive plan transition costs                                                                                        0.001                                                                                      0.003                                                                                      0.003                                                                                      0.013
Net gain on the sale of non-depreciable real estate owned                                                                            -                                                                                          -                                                                                     (0.006 )                                                                                        -
Legal claims, net of tax                                                                                                             -                                                                                      0.002                                                                                     (0.002 )                                                                                    0.003
Net loss on sale of unconsolidated land                                                                                              -                                                                                          -                                                                                      0.003                                                                                          -
Severance costs and other restructuring expense                                                                                  0.003                                                                                          -                                                                                      0.003                                                                                          -
Tax benefit - conversion of TRS entities into REITs                                                                (0.008 )                                                                                        -                                                                                     (0.008 )                                                                                        -
Casualty-related (recoveries)/charges, including JVs, net              (0.005 )                           0.007         (0.010 )                           0.017  
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
FFO as Adjusted per common share and unit, diluted                                      $   0.46                          $   0.42                          $   1.79                          $   1.67  
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
Recurring capital expenditures                                         (0.054 )                          (0.050 )                          (0.160 )                          (0.164 )
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
AFFO per common share and unit, diluted                                                 $   0.40                          $   0.37                          $   1.63                          $   1.51  
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------

A reconciliation of FFO, FFO as Adjusted and AFFO to GAAP Net income attributable to common stockholders can be found on Attachment 2 of the Company’s fourth quarter Supplemental Financial Information.

Operations

Total revenue increased by $5.4 million or 2 percent, to $243.0 million for the fourth quarter and $65.2 million or 7 percent, to $959.9 million for full-year 2016. This increase was primarily due to growth in revenue from same-store and stabilized, non-mature communities.

Same-store NOI increased 5.3 percent year-over-year in the fourth quarter of 2016 and was driven by same-store revenue growth of 5.0 percent against a 4.2 percent increase in same-store expenses. Same-store physical occupancy was 96.8 percent as compared to 96.5 percent in the prior year period. The fourth quarter annualized rate of turnover was 42.5 percent representing a 110 basis point decline year-over-year.

Summary of Same-Store Results Fourth Quarter 2016 versus Fourth
Quarter 2015
Region            Revenue     Expense      NOI       % of Same-       Same-Store       Number of
                                                        Growth                                            Growth                                           Growth                                               Store                                              Occupancy(2)                                           Same-Store
                                                                                                                                                                                                            Portfolio(1)                                                                                                   Homes(3)
------------ -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------------ -------------------- -------------------- ------------ -------------------- -------------------- ----------
                                                                                     
West                                                      5.2%                                              3.6%                                             5.8%                                                  43.9%                                                  96.2%                                               11,633
Mid-Atlantic                                              4.2%                                              2.9%                                             4.7%                                                  19.0%                                                  97.2%                                                6,902
Northeast                                                 3.6%                                              7.7%                                             2.0%                                                  17.5%                                                  97.2%                                                3,124
Southeast                                                 6.9%                                              2.0%                                             9.2%                                                  14.7%                                                  97.1%                                                7,683
Southwest           5.5%        8.6%       3.7%             4.9%            96.8%          2,923
------------ -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------------ -------------------- -------------------- ------------ -------------------- -------------------- ----------
Total               5.0%        4.2%       5.3%           100.0%            96.8%         32,265
------------ -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------------ -------------------- -------------------- ------------ -------------------- -------------------- ----------
(1)   Based on Q4 2016 NOI.
(2)                      Weighted average same-store occupancy for the quarter.
(3)                      During the fourth quarter, 32,265 apartment homes, or
                         approximately 82 percent of 39,454 total consolidated apartment
                         homes (versus 49,907 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.
                          

Sequential same-store NOI increased by 0.3 percent in the fourth quarter of 2016 on same-store revenue growth of 0.1 percent and a 0.4 percent decrease in same-store expenses.

For the twelve months ended December 31, 2016, the Company’s same-store revenue increased 5.7 percent and same-store expenses increased 3.7 percent, resulting in a same-store NOI increase of 6.5 percent. Same-store physical occupancy was 96.7 percent, flat with the prior year period.

Summary of Same-Store Results Full-Year 2016 versus Full-Year
2015
Region            Revenue     Expense      NOI       % of Same-       Same-Store       Number of
                                                        Growth                                            Growth                                           Growth                                               Store                                              Occupancy(2)                                           Same-Store
                                                                                                                                                                                                            Portfolio(1)                                                                                                   Homes(3)
------------ -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------------ -------------------- -------------------- ------------ -------------------- -------------------- ----------
                                                                                     
West                                                      7.1%                                              5.4%                                             7.7%                                                  43.0%                                                  96.2%                                               11,298
Mid-Atlantic                                              2.6%                                              0.0%                                             3.8%                                                  19.2%                                                  96.9%                                                6,902
Northeast                                                 4.7%                                              5.0%                                             4.5%                                                  18.0%                                                  97.0%                                                3,124
Southeast                                                 7.1%                                              2.5%                                             9.4%                                                  14.8%                                                  97.0%                                                7,683
Southwest           5.4%        6.2%       4.9%             5.0%            96.8%          2,923
------------ -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------------ -------------------- -------------------- ------------ -------------------- -------------------- ----------
Total               5.7%        3.7%       6.5%           100.0%            96.7%         31,930
------------ -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------------ -------------------- -------------------- ------------ -------------------- -------------------- ----------
(1)   Based on YTD 2016 NOI.
(2)                      Average same-store occupancy for YTD 2016.
(3)                      During the twelve months, 31,930 apartment homes, or
                         approximately 81 percent of 39,454 total consolidated apartment
                         homes (versus 49,907 apartment homes inclusive of joint ventures,
                         preferred equity investments and development pipeline homes upon
                         completion), 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 and Redevelopment Activity

At the end of the fourth quarter, the Company’s development pipeline totaled $1.1 billion. The $1.1 billion consisted of $216.7 million completed, non-stabilized development projects and $913.2 million of under-construction development projects. The $913.2 million of under-construction development projects are scheduled to be delivered over the next three years, with $112.2 million in 2017, $434.5 million in 2018 and the balance in 2019. The development pipeline is currently expected to produce a weighted average spread between estimated stabilized development yields and current market cap rates in excess of 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 totaling $364.8 million. 100 percent of the Company’s equity commitments in these projects has been funded. The $364.8 million consisted of $201.0 million of completed, stabilized developments, $107.6 million of completed, non-stabilized developments and a $56.2 million under-construction development which is expected to be completed in late-2017.

During the quarter,

-- The UDR/MetLife Joint Venture completed construction on 3033 Wilshire, a 190-home community located in Los Angeles with an estimated cost to construct of $108.0 million at 100 percent.

-- The West Coast Development Joint Venture completed construction on OLiVE DTLA, a 293-home community located in Los Angeles with a going-in valuation of $129.4 million at 100 percent.

-- The UDR/MetLife Joint Venture commenced construction on Vitruvian West, a 383-home community located in Addison, TX with an estimated cost to construct of $59.0 million at 100 percent and a scheduled completion date in late-2018.

Wholly-Owned Transactional Activity

As previously announced, the Company sold seven communities, comprising 1,402 homes, in Baltimore for $236.0 million or $168,000 per home. Additionally, the Company sold a 380-home community located in Dallas for $48.6 million or $128,000 per home. The eight communities had a weighted average monthly revenue per occupied home of $1,358, were 31 years old on average and were sold at a weighted average 6.0 percent cash flow cap rate.

During the quarter, the Company completed a 1031 acquisition of Milehouse, a 177-home community located in Redmond, WA for $70.2 million and at a cash flow cap rate of 4.4 percent. The community was recently completed, had an average monthly revenue per occupied home of $2,192, is designated LEED Silver and includes high-end amenities and home finishes.

Joint Venture Transactional Activity

As previously announced, the Company completed 1031 acquisitions of MetLife’s 50 percent interests in Ten20 and Ashton Bellevue, two adjacent communities comprising 331 homes and located in Bellevue, WA. The Company acquired MetLife’s interest for $68.4 million plus the assumption of $37.9 million of debt. These communities have a weighted average monthly revenue per occupied home of $3,322 and are 7 years old on average.

Subsequent to quarter end, the Company exercised its fixed price purchase option to acquire CityLine, a 244-home West Coast Development Joint Venture community located in suburban Seattle. The Company’s total investment in CityLine was $86.5 million. The community was acquired at a 5.3 percent cash flow cap rate, has an average monthly revenue per occupied home of $2,018 and further differentiates the Company’s Seattle area product type, locational and asset quality mixes.

Capital Markets

Subsequent to quarter end, the Company established a $500.0 million commercial paper program (the "Program") in the United States. Under the Program, the Company may issue, from time to time, commercial paper notes up to a maximum aggregate amount outstanding of $500.0 million. Standard and Poor’s and Moody’s Investor Service has assigned ratings of A-2 and P-2, respectively. Proceeds will be used for general corporate purposes.

Balance Sheet

At December 31, 2016, the Company had $1,156 million in availability through a combination of cash and undrawn capacity on its credit facilities.

The Company’s total indebtedness at December 31, 2016 was $3.4 billion. The Company ended the quarter with fixed-rate debt representing 87.3 percent of its total debt, a total blended interest rate of 3.79 percent and a weighted average maturity of 5.3 years.

On a consolidated basis, the Company’s leverage was 32.1 percent versus 34.6 percent a year ago, net debt-to-EBITDA was 5.1x versus 5.7x a year ago and fixed charge coverage was 4.8x versus 4.1x a year ago.

Other

In conjunction with this release, the Company published its 2017/2018 Strategic Outlook which outlines the Company’s long-term strategies, how the Company has performed versus past Strategic Outlooks and expectations for 2017 and 2018. The 2017/2018 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 2016 in the amount of $0.295 per share. The dividend will be paid in cash on January 31, 2017 to UDR common stock shareholders of record as of January 10, 2017. The fourth quarter 2016 dividend will represent the 177th consecutive quarterly dividend paid by the Company on its common stock.

In conjunction with this release, the Company has declared a 2017 annualized dividend per share of $1.24, a 5% increase over 2016.

Outlook

For the first quarter of 2017, the Company has established the following earnings guidance ranges:

Net income per share               $0.08 to $0.09
FFO per share                                                                               $0.44 to $0.46
FFO as Adjusted per share                                                                   $0.44 to $0.46
AFFO per share                                                                              $0.42 to $0.44
                                                                                          

For the full-year 2017, the Company has established the following earnings guidance ranges:

Net income per share               $0.31 to $0.36
FFO per share                                                                               $1.83 to $1.87
FFO as Adjusted per share                                                                   $1.83 to $1.87
AFFO per share                                                                              $1.68 to $1.72
                                                                                          

For the full-year 2017, the Company’s primary same-store growth assumptions are:

Revenue                                                                                                                                                                                       3.00% to 4.00%
Expense                                                                                                                                                                                                                                                2.50% to 3.50%
Net operating income                                                                           3.25% to 4.25%
                                                                                                                                                                                                                                                     

Additional assumptions for the Company’s first quarter and full-year 2017 guidance can be found on Attachment 15 of the Company’s fourth quarter Supplemental Financial Information. A reconciliation of FFO per share, FFO as Adjusted per share and AFFO per share to GAAP Net income per share can be found on Attachment 16(D) of the Company’s fourth quarter Supplemental Financial Information. Non-GAAP financial measures and other terms, as used in this earnings release, are defined and further explained on Attachments 16(A) through 16(D), "Definitions and Reconciliations," 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 1:00 p.m. Eastern Time on January 31, 2017 to discuss fourth quarter and full-year results as well as its 2017/2018 Strategic Outlook. 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 877-705-6003 for domestic and 201-493-6725 for international. A passcode is not necessary.

A replay of the conference call will be available through March 2, 2017, by dialing 844-512-2921 for domestic and 412-317-6671 for international and entering the confirmation number, 13652450, when prompted for the passcode.

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, Supplemental Financial Information and 2017/2018 Strategic Outlook will be available on the Company’s website at ir.udr.com.

Mail -- For those without Internet access, the fourth quarter 2016 earnings report, Supplemental Financial Information and 2017/2018 Strategic Outlook will be available by mail or fax, on request. To receive a copy, please call UDR Investor Relations at 720-348-7762.

 
                                      Attachment 16(B)
                                               
                                          UDR, Inc.
                               Definitions and Reconciliations
                                      December 31, 2016
                                         (Unaudited)
 
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/(loss) on the sale of real estate
owned, 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 Ownership
Interest
                                                                                                                                                                                                               
In thousands                                                                                                                            4Q 2016                                                                                    YTD 2016
                                                                                                                  --------------------------------------------------                                          --------------------------------------------------
Income/(loss) from unconsolidated entities                                                                                           $  35,945                                                                                   $  52,234
  Management fee                                                                                                                         1,138                                                                                       4,711
  Interest expense                                                                                                                       8,596                                                                                      33,233
  Depreciation                                                                                                                          13,055                                                                                      47,832
  General and administrative                                                                                                               124                                                                                         536
  West Coast Development JV                                                                                                             (1,869 )                                                                                    (8,412 )
  Steele Creek                                                                                                                          (1,567 )                                                                                    (6,213 )
  Other (income)/expense (includes 717 Olympic casualty (gain)/expense)                                                                   (168 )                                                                                    (4,059 )
  NOI related to sold properties                                                                                                           (80 )                                                                                    (4,496 )
  Gain on sales                                                                                                     (36,385 )                                                                (46,832 )
                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------
Total Joint Venture NOI at UDR’s Ownership Interest                                                                                  $  18,789                                                                $  68,534  
                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================
                                                                                                                                                                                                               
JV Return on Equity ("ROE"): The Company defines JV
ROE as its 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 its 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/(loss) on the sale
of real estate owned, 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 2016                                                3Q 2016                                               2Q 2016                                                 1Q 2016                                               4Q 2015
                                                                                                       ----------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------- -------------------- -------------------- ---------------------------------------------------------------------- -------------------- ---------------------------------------------------
Net income/(loss) attributable to UDR, Inc.                                                                               $  237,617                                             $  26,956                                             $  17,946                                               $  10,393                                             $  162,200
  Property management                                                                                                          6,603                                                                                       6,607                                                                                       6,494                                                                                                            6,379                                                                                        6,445
  Other operating expenses                                                                                                     2,369                                                                                       1,636                                                                                       1,892                                                                                                            1,752                                                                                        3,534
  Real estate depreciation and amortization                                                                                  102,537                                                                                     105,802                                                                                     105,937                                                                                                          105,339                                                                                      104,909
  Interest expense                                                                                                            29,295                                                                                      31,954                                                                                      30,678                                                                                                           31,104                                                                                       33,170
  Casualty-related (recoveries)/charges, net                                                                                  (1,102 )                                                                                       205                                                                                       1,629                                                                                                                -                                                                                          (45 )
  General and administrative                                                                                                  13,256                                                                                      11,826                                                                                      10,835                                                                                                           13,844                                                                                       17,993
  Tax (benefit)/provision, net                                                                                                (3,063 )                                                                                        94                                                                                        (402 )                                                                                                           (403 )                                                                                     (1,424 )
  (Income)/loss from unconsolidated entities                                                                                 (35,945 )                                                                                   (15,285 )                                                                                      (325 )                                                                                                           (679 )                                                                                     (1,052 )
  Interest income and other (income)/expense, net                                                                               (481 )                                                                                      (478 )                                                                                      (540 )                                                                                                           (431 )                                                                                       (407 )
  Joint venture management and other fees                                                                                     (2,927 )                                                                                    (2,997 )                                                                                    (2,618 )                                                                                                         (2,858 )                                                                                     (3,253 )
  Other depreciation and amortization                                                                                          1,458                                                                                       1,526                                                                                       1,486                                                                                                            1,553                                                                                        1,899
  (Gain)/loss on sale of real estate owned, net of tax                                                                      (200,466 )                                                                                         -                                                                                      (7,315 )                                                                                                         (3,070 )                                                                                   (172,635 )
  Net income/(loss) attributable to noncontrolling interests                                               22,129           2,510           1,618             1,211           14,963  
                                                                                                       -------------------- -------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
Total consolidated NOI                                                                                                    $  171,280                          $ 170,356                          $ 167,315                            $ 164,134                          $  166,297  
                                                                                                       ==================== ======== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

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 and rental rates, 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.

About UDR, Inc.

UDR, Inc. (UDR ), an S&P 500 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, 2016, UDR owned or had an ownership position in 49,907 apartment homes including 3,604 homes under development or in preferred equity investments. For over 45 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                                              2016                               2015                                2016                                2015
----------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------------------- -------------------- -------------------- ------------------------------------------------- -------------------- -------------------- -------------------------------------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
REVENUES:
Rental income                                                                                                                  $ 240,081                                                                                   $ 234,352                                                                                   $  948,461                                                                                   $  871,928
Joint venture management and other fees (2)                                                                     2,927           3,253           11,400           22,710  
                                                                                                            -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
   Total revenues                                                                                             243,008         237,605          959,861          894,638  
                                                                                                            -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
OPERATING EXPENSES:
Property operating and maintenance                                                                                                40,075                                                                                      41,174                                                                                      159,947                                                                                      155,096
Real estate taxes and insurance                                                                                                   28,726                                                                                      26,881                                                                                      115,429                                                                                      102,963
Property management                                                                                                                6,603                                                                                       6,445                                                                                       26,083                                                                                       23,978
Other operating expenses                                                                                                           2,369                                                                                       3,534                                                                                        7,649                                                                                        9,708
Real estate depreciation and amortization                                                                                        102,537                                                                                     104,909                                                                                      419,615                                                                                      374,598
Acquisition costs                                                                                                                    152                                                                                       1,433                                                                                          213                                                                                        2,126
General and administrative                                                                                                        13,104                                                                                      16,560                                                                                       49,548                                                                                       57,564
Casualty-related (recoveries)/charges, net                                                                                        (1,102 )                                                                                       (45 )                                                                                        732                                                                                        2,335
Other depreciation and amortization                                                                             1,458           1,899            6,023            6,679  
                                                                                                            -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
   Total operating expenses                                                                                   193,922         202,790          785,239          735,047  
                                                                                                            -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Operating income                                                                                                                  49,086                                                                                      34,815                                                                                      174,622                                                                                      159,591
                                                                                                                                                                                                                                                                                                                                                                                                  
Income/(loss) from unconsolidated entities (3)                                                                                    35,945                                                                                       1,052                                                                                       52,234                                                                                       62,329
                                                                                                                                                                                                                                                                                                                                                                                                  
Interest expense                                                                                                                 (29,295 )                                                                                   (33,170 )                                                                                   (121,302 )                                                                                   (121,875 )
(Cost)/benefit associated with debt extinguishment and other                                                        -               -           (1,729 )                                 -  
                                                                                                            -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
   Total interest expense                                                                                                        (29,295 )                                                                                   (33,170 )                                                                                   (123,031 )                                                                                   (121,875 )
Interest income and other income/(expense), net                                                                   481             407            1,930            1,551  
                                                                                                            -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Income/(loss) before income taxes and gain/(loss) on sale of real                                                                 56,217                                                                                       3,104                                                                                      105,755                                                                                      101,596
estate owned
Tax benefit/(provision), net                                                                                    3,063           1,424            3,774            3,886  
                                                                                                            -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Income/(loss) from continuing operations                                                                                          59,280                                                                                       4,528                                                                                      109,529                                                                   105,482
Gain/(loss) on sale of real estate owned, net of tax                                                          200,466         172,635          210,851          251,677  
                                                                                                            -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Net income/(loss)                                                                                                                259,746                                                                                     177,163                                                                                      320,380                                                                   357,159
Net (income)/loss attributable to redeemable noncontrolling                                                                      (22,114 )                                                                                   (14,966 )                                                                 (27,282 )                                                                                    (16,773 )
interests in the OP and DownREIT Partnership (4) (5)
Net (income)/loss attributable to noncontrolling interests                                                        (15 )                                3             (380 )                                (3 )
                                                                                                            -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Net income/(loss) attributable to UDR, Inc.                                                                                      237,617                                                                                     162,200                                                                                      292,718                                                                                      340,383
Distributions to preferred stockholders - Series E (Convertible)                                                 (930 )                             (930 )                            (3,717 )                            (3,722 )
                                                                                                            -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Net income/(loss) attributable to common stockholders                                                                          $ 236,687                          $ 161,270                          $  289,001                          $  336,661  
                                                                                                            ==================== ======= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ======== ==================== ==================== ==================== ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                  
Income/(loss) per weighted average common share - basic:                                                                       $    0.89                                                                                   $    0.62                                                                                   $     1.09                                                                                   $     1.30
Income/(loss) per weighted average common share - diluted:                                                                     $    0.88                                                                                   $    0.61                                                                                   $     1.08                                                                                   $     1.29
                                                                                                                                                                                                                                                                                                                                                                                                  
Common distributions declared per share                                                                                        $  0.2950                                                                                   $  0.2775                                                                                   $   1.1800                                                                                   $   1.1100
                                                                                                                                                                                                                                                                                                                                                                                                  
Weighted average number of common shares outstanding - basic                                                                     266,498                                                                                     260,830                                                                                      265,386                                                                                      258,669
Weighted average number of common shares outstanding - diluted                                                                   271,551                                                                                     266,108                                                                                      267,311                                                                                      263,752
                                                         
(1) See Attachment 16 for definitions and other terms.
(2) 4Q 2015 and YTD 2015 presented above include
approximately $0.4 million and $10.0 million of promote and
disposition fee income in connection with the January 2015 sale of
eight communities held by the Texas Joint Venture.
(3) 4Q 2016, 4Q 2015, YTD 2016, and YTD 2015 presented above
include approximately $36.4 million, $0.4 million, $47.8 million,
and $59.4 million, respectively, of gains on the sale of
unconsolidated depreciable properties.
(4) 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.
(5) Due to the quarterly 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 and unit amounts                                         2016                                2015                                2016                                2015
-------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------------------------------------- -------------------- -------------------- -------------------------------------------------- -------------------- -------------------- -------------------------------------------------- -------------------- -------------------- ------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                       
Net income/(loss) attributable to common stockholders                                                                             $  236,687                                                                                   $  161,270                                                                                   $  289,001                                                                                   $  336,661
                                                                                                                                                                                                                                                                                                                                                                                                       
  Real estate depreciation and amortization                                                                                          102,537                                                                                      104,909                                                                                      419,615                                                                                      374,598
  Noncontrolling interests                                                                                                            22,129                                                                                       14,963                                                                                       27,662                                                                                       16,776
  Real estate depreciation and amortization on unconsolidated joint                                                                   13,055                                                                                        9,389                                                                                       47,832                                                                                       38,652
  ventures
  Net gain on the sale of unconsolidated depreciable property                                                                        (36,385 )                                                                                       (372 )                                                                                    (47,848 )                                                                                    (59,445 )
  Net gain on the sale of depreciable real estate owned                                                          (200,466 )                                                                (172,635 )                                                                (209,166 )                                                                (251,677 )
                                                                                                               -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
Funds from operations ("FFO") attributable to common stockholders                                                                 $  137,557                                                                $  117,524                                                                $  527,096                                                                $  455,565  
and unitholders, basic
                                                                                                               ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                       
  Distributions to preferred stockholders - Series E (Convertible)                                                                       930                                                                                          930                                                                                        3,717                                                                                        3,722
  (2)
                                                                                                                                                                                                                                                                                                                                              
                                                                                                               ---------------------------------------------------                                          ---------------------------------------------------                                          ---------------------------------------------------                                          ---------------------------------------------------
FFO attributable to common stockholders and unitholders, diluted                                                                  $  138,487                                                                $  118,454                                                                $  530,813                                                                $  459,287  
                                                                                                               ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                       
FFO per common share and unit, basic                                                                                              $     0.47                                                                $     0.41                                                                $     1.81                                                                $     1.68  
                                                                                                               ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
FFO per common share and unit, diluted                                                                                            $     0.47                                                                $     0.41                                                                $     1.80                                                                $     1.66  
                                                                                                               ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                       
Weighted average number of common shares and OP/DownREIT Units                                                    291,471                                                285,144                                                290,516                                                271,616  
outstanding - basic
                                                                                                               -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
Weighted average number of common shares, OP/DownREIT Units, and
common stock
  equivalents outstanding - diluted                                                                               296,524                                                290,422                                                295,469                                                276,699  
                                                                                                               -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                       
Impact of adjustments to FFO:
  Acquisition-related costs/(fees)                                                                                                $      152                                                                                   $    1,433                                                                                   $      213                                                                                   $    2,126
  Acquisition-related costs/(fees) on unconsolidated joint ventures                                                                        -                                                                                            -                                                                                            -                                                                                        1,460
  Cost/(benefit) associated with debt extinguishment and other                                                                             -                                                                                            -                                                                                        1,729                                                                                            -
  Texas Joint Venture promote and disposition fee income                                                                                   -                                                                                         (372 )                                                                                          -                                                                                      (10,005 )
  Long-term incentive plan transition costs                                                                                              274                                                                                          884                                                                                          898                                                                                        3,537
  Net gain on the sale of non-depreciable real estate owned                                                                                -                                                                                            -                                                                                       (1,685 )                                                                                          -
  Legal claims, net of tax                                                                                                                 -                                                                                          705                                                                                         (480 )                                                                                        705
  Net loss on sale of unconsolidated land                                                                                                  -                                                                                            -                                                                                        1,016                                                                                            -
  Severance costs and other restructuring expense                                                                                        871                                                                                            -                                                                                          871                                                                                            -
  Tax benefit associated with the conversion of certain TRS entities                                                                  (2,436 )                                                                                          -                                                                                       (2,436 )                                                                                          -
  into REITs (3)
  Casualty-related (recoveries)/charges, net                                                                                          (1,102 )                                                                                        (45 )                                                                                        732                                                                                        2,335
  Casualty-related (recoveries)/charges on unconsolidated joint                                                      (251 )                                                                   2,218                                                 (3,752 )                                                                   2,474  
  ventures, net (4)
                                                                                                               -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                  $   (2,492 )                                                                                 $    4,823                                                                $   (2,894 )                                                                                 $    2,632  
                                                                                                               -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                              
                                                                                                               ---------------------------------------------------                                          ---------------------------------------------------                                          ---------------------------------------------------                                          ---------------------------------------------------
FFO as Adjusted attributable to common stockholders and                                                                           $  135,995                                                                $  123,277                                                                $  527,919                                                                $  461,919  
unitholders, diluted
                                                                                                               ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                       
FFO as Adjusted per common share and unit, diluted                                                                                $     0.46                                                                $     0.42                                                                $     1.79                                                                $     1.67  
                                                                                                               ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                       
Recurring capital expenditures                                                                                    (15,974 )                                                                 (14,419 )                                                                 (47,257 )                                                                 (45,467 )
                                                                                                               -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------                                           -------------------- -------- --------------------
AFFO attributable to common stockholders and unitholders                                                                          $  120,021                                                                $  108,858                                                                $  480,662                                                                $  416,452  
                                                                                                               ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                       
AFFO per common share and unit, diluted                                                                                           $     0.40                                                                $     0.37                                                                $     1.63                                                                $     1.51  
                                                                                                               ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                       
(1) See Attachment 16 for definitions and other terms.
(2) 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.
(3) During 4Q16, the Company recognized a one-time tax
benefit of $2.4 million related to the conversion of certain
taxable REIT subsidiary entities into REITs.
(4) Casualty-related (recoveries)/charges on unconsolidated
joint ventures, net include casualty recoveries of $0.3 million
and $3.8 million for the three and twelve months ended December
31, 2016 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 (1)
                                                                                                                            (Unaudited)
                                                                                                                                                                                                               
                                                                                                                                   December 31,                                                                                   December 31,
In thousands, except share and per share amounts                                                 2016                                                     2015
-------------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------------------- -------------------- -----------------------------------------------------
                                                                                                                                                                                                               
ASSETS
                                                                                                                                                                                                               
Real estate owned:
  Real estate held for investment                                                                                                 $  9,271,847                                                                                   $  9,053,599
    Less: accumulated depreciation                                                                               (2,923,072 )                                                                (2,646,044 )
                                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
  Real estate held for investment, net                                                                                               6,348,775                                                                                      6,407,555
  Real estate under development
    (net of accumulated depreciation of $0 and $0)                                                                                     342,282                                                                                        124,072
  Real estate held for disposition
    (net of accumulated depreciation of $553 and $830)                                                                1,071                                                   11,775  
                                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total real estate owned, net of accumulated depreciation                                                                             6,692,128                                                                                      6,543,402
                                                                                                                                                                                                               
  Cash and cash equivalents                                                                                                              2,112                                                                                          6,742
  Restricted cash                                                                                                                       19,994                                                                                         20,798
  Notes receivable, net                                                                                                                 19,790                                                                                         16,694
  Investment in and advances to unconsolidated joint ventures, net                                                                     827,025                                                                                        938,906
  Other assets                                                                                                      118,535                                                  137,302  
                                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total assets                                                                                                                      $  7,679,584                                                                $  7,663,844  
                                                                                                               ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                               
LIABILITIES AND EQUITY
                                                                                                                                                                                                               
Liabilities:
  Secured debt                                                                                                                    $  1,130,858                                                                                   $  1,376,945
  Unsecured debt                                                                                                                     2,270,620                                                                                      2,193,850
  Real estate taxes payable                                                                                                             17,388                                                                                         18,786
  Accrued interest payable                                                                                                              29,257                                                                                         29,162
  Security deposits and prepaid rent                                                                                                    34,238                                                                                         36,330
  Distributions payable                                                                                                                 86,936                                                                                         80,368
  Accounts payable, accrued expenses, and other liabilities                                                         103,835                                                   81,356  
                                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total liabilities                                                                                                                    3,673,132                                                                                      3,816,797
                                                                                                                                                                                                               
Redeemable noncontrolling interests in the OP and DownREIT                                                                             909,482                                                                                        946,436
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 (2,796,903 shares at December 31, 2015)                                                                            46,457                                                                                         46,457
    16,196,889 shares of Series F outstanding (16,452,496 shares
     at December 31, 2015)                                                                                                                   1                                                                                              1
  Common stock, $0.01 par value; 350,000,000 shares authorized
    267,259,469 shares issued and outstanding (261,844,521 shares at                                                                     2,673                                                                                          2,618
    December 31, 2015)
  Additional paid-in capital                                                                                                         4,635,413                                                                                      4,447,816
  Distributions in excess of net income                                                                                             (1,585,825 )                                                                                   (1,584,459 )
  Accumulated other comprehensive income/(loss), net                                                                 (5,609 )                                                                   (12,678 )
                                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total stockholders’ equity                                                                                                           3,093,110                                                                                      2,899,755
  Noncontrolling interests                                                                                            3,860                                                      856  
                                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total equity                                                                                                      3,096,970                                                2,900,611  
                                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total liabilities and equity                                                                                                      $  7,679,584                                                                $  7,663,844  
                                                                                                               ==================== ========== ====================                                           ==================== ========== ====================

(1) See Attachment 16 for definitions and other terms.

                                                                                     
                                                                                                                                                                                                                                                                  
                                                                                                                                    Attachment 4(C)
                                                                                                                                                                                                                                                                  
                                                                                                                                       UDR, Inc.
                                                                                                                          Selected Financial Information (1)
                                                                                                                                      (Unaudited)
                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                     Quarter Ended
Coverage Ratios                                                                         December 31, 2016
------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                  
Net income/(loss) attributable to UDR, Inc.                                                                                                                                                                                                                                 $ 237,617
                                                                                                                                                                                                                                                                  
Adjustments:
  Interest expense                                                                                                                                                                                                                                                             29,295
  Real estate depreciation and amortization                                                                                                                                                                                                                                   102,537
  Real estate depreciation and amortization on unconsolidated joint                                                                                                                                                                                                            13,055
  ventures
  Other depreciation and amortization                                                                                                                                                                                                                                           1,458
  Noncontrolling interests                                                                                                                                                                                                                                                     22,129
  Income tax provision/(benefit)                                                                                                                                                                                                                                              (3,063)
                                                                                                                                                                                                                                                                 --------------------
EBITDA                                                                                                                                                                                                                                                                      $ 403,028
                                                                                                                                                                                                                                                                 --------------------
                                                                                                                                                                                                                                                                  
  Net gain on the sale of depreciable real estate owned                                                                                                                                                                                                                     (200,466)
  Net gain on the sale of unconsolidated depreciable property                                                                                                                                                                                                                (36,385)
  Long-term incentive plan transition costs                                                                                                                                                                                                                                       274
  Acquisition-related costs/(fees)                                                                                                                                                                                                                                                152
  Severance costs and other restructuring expense                                                                                                                                                                                                                                 871
  Casualty-related (recoveries)/charges, net                                                                                                                                                                                                                                  (1,102)
  Casualty-related (recoveries)/charges on unconsolidated joint                                                                                                                                                                                                                 (251)
  ventures, net
                                                                                                                                                                                                                                                                 --------------------
EBITDA - adjusted for non-recurring items                                                                                                                                                                                                                                   $ 166,121
                                                                                                                                                                                                                                                                 ====================
                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                 --------------------
Annualized EBITDA - adjusted for non-recurring items                                                                                                                                                                                                                        $ 664,484
                                                                                                                                                                                                                                                                 --------------------
                                                                                                                                                                                                                                                                  
  Interest expense                                                                                                                                                                                                                                                             29,295
  Capitalized interest expense                                                                                                                                                                                                                                                  4,361
                                                                                                                                                                                                                                                                 --------------------
Total interest                                                                                                                                                                                                                                                               $ 33,656
                                                                                                                                                                                                                                                                  
Preferred dividends                                                                                                                                                                                                                                                             $ 930
                                                                                                                                                                                                                                                                  
  Total debt                                                                                                                                                                                                                                                              $ 3,401,478
  Cash                                                                                                                                                                                                                                                                          2,112
                                                                                                                                                                                                                                                                 --------------------
Net debt                                                                                                                                                                                                                                                                  $ 3,399,366
                                                                                                                                                                                                                                                                 --------------------
                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                  
Interest Coverage Ratio - adjusted for non-recurring items                                                                                                                                                                                                                       4.9x
                                                                                                                                                                                                                                                                 ====================
                                                                                                                                                                                                                                                                  
Fixed Charge Coverage Ratio - adjusted for non-recurring items                                                                                                                                                                                                                   4.8x
                                                                                                                                                                                                                                                                 ====================
                                                                                                                                                                                                                                                                  
Net Debt-to-EBITDA - adjusted for non-recurring items                                                                                                                                                                                                                            5.1x
                                                                                                                                                                                                                                                                 ====================
                                                                                                                                                                                                                                                                  
Debt Covenant Overview                                                                                                   
                                                                                                                                                                                                                                             
Unsecured Line of Credit Covenants (2)                                            Required                    Actual           Compliance
---------------------------------------------------------------- -------------------- -------------------- ---------------------------------- -------------------- -------------------- --------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                             
Maximum Leverage Ratio                                                                                       less-than or equal to60.0%                                                33.3%                                                     Yes
Minimum Fixed Charge Coverage Ratio                                                                         greater-than or equal to1.5x                                               3.9x                                                      Yes
Maximum Secured Debt Ratio                                                                                   less-than or equal to40.0%                                                15.9%                                                     Yes
Minimum Unencumbered Pool Leverage Ratio                                                                   greater-than or equal to150.0%                                             394.3%                                                     Yes
                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                             
Senior Unsecured Note Covenants (3)                                               Required                    Actual           Compliance
---------------------------------------------------------------- -------------------- -------------------- ---------------------------------- -------------------- -------------------- --------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                             
Debt as a percentage of Total Assets                                                                         less-than or equal to60.0%                                                32.2%                                                     Yes
Consolidated Income Available for Debt Service to Annual Service                                            greater-than or equal to1.5x                                               4.9x                                                      Yes
Charge
Secured Debt as a percentage of Total Assets                                                                 less-than or equal to40.0%                                                10.7%                                                     Yes
Total Unencumbered Assets to Unsecured Debt                                                                greater-than or equal to150.0%                                             338.6%                                                     Yes
                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                             
Securities Ratings                                                                  Debt                     Preferred           Outlook
---------------------------------------------------------------- -------------------- -------------------- ---------------------------------- -------------------- -------------------- --------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                             
Moody’s Investors Service                                                                                                 Baa1                                                             Baa2                                                    Stable
Standard & Poor’s                                                                                                         BBB+                                                             BBB-                                                    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.
 
 
                          Attachment 16(D)
 
                              UDR, Inc.
                   Definitions and Reconciliations
                          December 31, 2016
                             (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 2017 and first quarter of 2017 to forecasted FFO, FFO as
Adjusted and AFFO per share and unit:
                                                                                                                  Full-Year 2017
                                                                                                                                                                 Low                                              High
                                                                                                                                          ------------------------------------------------                     -------------------------------------------------
                                                                                                                                                                                                                
Forecasted net income per diluted share                                                                                                                      $  0.31                                                              $   0.36
Conversion from GAAP share count                                                                                                                               (0.17 )                                                               (0.18 )
Depreciation                                                                                                                                                    1.69                                                                  1.69
Noncontrolling interests                                                                                                                                       (0.01 )                                                               (0.01 )
Preferred dividends                                                                                                                          0.01                            0.01  
                                                                                                                                          -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted FFO per diluted share and unit                                                                                                                    $  1.83                                           $   1.87  
                                                                                                                                          -------------------- ----- --------------------                      -------------------- ------ --------------------
Disposition-related FFO                                                                                                                                            -                                                                     -
Acquisition-related and other costs                                                                                                                                -                                                                     -
Cost associated with debt extinguishment                                                                                                                           -                                                                     -
Casualty-related (recoveries)/charges                                                                                                           -                               -  
                                                                                                                                          -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted FFO as Adjusted per diluted share and unit                                                                                                        $  1.83                                           $   1.87  
                                                                                                                                          -------------------- ----- --------------------                      -------------------- ------ --------------------
Recurring capital expenditures                                                                                                              (0.15 )                                            (0.15 )
                                                                                                                                          -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted AFFO per diluted share and unit                                                                                                                   $  1.68                                           $   1.72  
                                                                                                                                          -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                
                                                                                                                                                                                                                
                                                                                                                                                                                                  1Q 2017
                                                                                                                                                                 Low                                                                 High
                                                                                                                                          ------------------------------------------------                     -------------------------------------------------
                                                                                                                                                                                                                
Forecasted net income per diluted share                                                                                                                      $  0.08                                                              $   0.09
Conversion from GAAP share count                                                                                                                               (0.06 )                                                               (0.05 )
Depreciation                                                                                                                                                    0.42                                                                  0.42
Noncontrolling interests                                                                                                                                           -                                                                     -
Preferred dividends                                                                                                                             -                               -  
                                                                                                                                          -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted FFO per diluted share and unit                                                                                                                    $  0.44                                           $   0.46  
                                                                                                                                          -------------------- ----- --------------------                      -------------------- ------ --------------------
Disposition-related FFO                                                                                                                                            -                                                                     -
Acquisition-related and other costs                                                                                                                                -                                                                     -
Cost associated with debt extinguishment                                                                                                                           -                                                                     -
Casualty-related (recoveries)/charges                                                                                                           -                               -  
                                                                                                                                          -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted FFO as Adjusted per diluted share and unit                                                                                                        $  0.44                                           $   0.46  
                                                                                                                                          -------------------- ----- --------------------                      -------------------- ------ --------------------
Recurring capital expenditures                                                                                                              (0.02 )                                            (0.02 )
                                                                                                                                          -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted AFFO per diluted share and unit                                                                                                                   $  0.42                                           $   0.44  
                                                                                                                                          -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                            

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170130006017r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170130006017/en/

SOURCE: UDR, Inc.

UDR, Inc. 
Chris Van Ens, 720-348-7762


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