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 UDR Announces Second Quarter 2017 Results and Increases Full-Year 2017 Earnings and Same-Store Guidance
   Wednesday, July 26, 2017 4:16:02 PM ET

UDR (the "Company") Second Quarter 2017 Highlights:

-- Net income per share was $0.03, Funds from Operations ("FFO") per share was $0.45, FFO as Adjusted per share was $0.47, and Adjusted Funds from Operations ("AFFO") per share was $0.43.

-- Net income attributable to common stockholders was $9.2 million as compared to $17.0 million in the prior year period. The decrease was primarily due to the absence of gains on the sale of real estate and higher debt prepayment costs.

-- Year-over-year same-store ("SS") revenue, expense and net operating income ("NOI") growth for the quarter were 3.9 percent, 3.1 percent and 4.2 percent, respectively.

-- Expanded the Developer Capital Program via investments in three individual communities totaling $33.1 million with a total funding commitment of $79.3 million over the expected life of the investments.



-- Issued $300.0 million of 10-year unsecured debt at a 3.5 percent coupon and prepaid approximately $177.0 million of higher-cost debt originally scheduled to mature in 2018.

-- The UDR/MetLife Joint Venture completed the construction of Verve Mountain View, a $99.0 million, 155-home community located in Mountain View, CA.

-- Increased or reaffirmed full-year 2017 earnings and same-store growth guidance: -- Reaffirmed Net income per share guidance of $0.31 to $0.36.

-- Reaffirmed FFO per share guidance of $1.83 to $1.87.

-- Increased FFO as Adjusted and AFFO per share guidance by $0.01 at the midpoints, to $1.84 to $1.88 and $1.69 to $1.73, respectively.

-- Increased SS revenue growth guidance range to 3.25 to 4.00 percent (+12.5 bps at the midpoint).

-- Increased SS NOI growth guidance range to 3.50 to 4.25 percent (+12.5 bps at the midpoint).

                                                              
--------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                  Q2 2017                  Q2 2016                 YTD 2017                 YTD 2016
--------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net income per common share, diluted                                  $0.03                    $0.06                    $0.13                    $0.10
--------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Conversion from GAAP share count                                     (0.003)                  (0.006)                  (0.012)                  (0.010)
Net gain on the sale of depreciable real estate owned                                                         -                                                           (0.025)                                                        (0.043)                                                        (0.030)
Depreciation and amortization                                                                               0.414                                                          0.399                                                          0.815                                                          0.794
Noncontrolling interests and preferred dividends                      0.006                    0.009                    0.018                    0.016
--------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
FFO per common share and unit, diluted                                $0.45                    $0.44                    $0.90                    $0.87
--------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Cost/(benefit) associated with debt extinguishment, other                                                   0.015                                                            -                                                            0.020                                                            -
Long-term incentive plan transition costs                                                                     -                                                            0.000                                                            -                                                            0.001
Net gain on the sale of non-depreciable real estate owned                                                     -                                                              -                                                           (0.005)                                                        (0.006)
Casualty-related (recoveries)/charges, including JVs, net             0.004                    0.005                    0.003                    0.009
--------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
FFO as Adjusted per common share and unit, diluted                    $0.47                    $0.45                    $0.92                    $0.88
--------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Recurring capital expenditures                                       (0.036)                  (0.037)                  (0.059)                  (0.061)
--------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
AFFO per common share and unit, diluted                               $0.43                    $0.41                    $0.86                    $0.81
--------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
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 second quarter Supplemental
Financial Information.
 

Operations

In the second quarter, total revenue increased by $9.2 million or 3.8 percent, to $248.0 million. This increase was primarily due to growth in revenue from same-store communities and stabilized, non-mature communities.

In the second quarter, same-store NOI increased 4.2 percent year-over-year and was driven by same-store revenue growth of 3.9 percent against a 3.1 percent increase in same-store expenses. Weighted average same-store physical occupancy was 96.8 percent as compared to 96.4 percent in the prior year period. The second quarter annualized rate of turnover was 54.7 percent, representing a 180 basis point decrease year-over-year.

                                                                                                                                                                                                          
Summary of Same-Store Results Second Quarter 2017 versus Second
Quarter 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Region          Revenue    Expense     NOI     % of Same-     Same-Store     Number of
                                   Growth                        Growth/                      Growth                          Store                         Occupancy(2)                      Same-Store
                                                                (Decline)                                                 Portfolio(1)                                                         Homes(3)
------------ -------------------- ------- -------------------- --------- -------------------- ------ -------------------- ------------ -------------------- ------------ -------------------- ----------
                                                                           
West                                 4.6%                         (0.9)%                        6.5%                             39.9%                             96.4%                          11,961
Mid-Atlantic                         2.9%                           3.3%                        2.7%                             25.7%                             97.1%                          10,480
Northeast                            2.7%                           8.3%                        0.6%                             17.4%                             96.9%                           3,493
Southeast                            5.2%                           5.4%                        5.1%                             12.8%                             97.0%                           7,683
Southwest         4.4%        4.6%     4.2%           4.2%          96.7%        2,923
------------ -------------------- ------- -------------------- --------- -------------------- ------ -------------------- ------------ -------------------- ------------ -------------------- ----------
Total             3.9%        3.1%     4.2%         100.0%          96.8%       36,540
------------ -------------------- ------- -------------------- --------- -------------------- ------ -------------------- ------------ -------------------- ------------ -------------------- ----------
(1)   Based on Q2 2017 NOI.
(2)                      Weighted average same-store physical occupancy for the
                         quarter.
(3)                      During the second quarter, 36,540 apartment homes 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 1.2 percent in the second quarter of 2017 on same-store revenue growth of 0.8 percent and 0.0 percent same-store expense growth.

Year-to-date, for the six months ended June 30, 2017, total revenue increased by $18.2 million or 3.8 percent, to $491.8 million. This increase was primarily due to growth in revenue from same-store communities and stabilized, non-mature communities.

Year-to-date, for the six months ended June 30, 2017, same-store NOI increased 4.5 percent year-over-year and was driven by same-store revenue growth of 4.2 percent against a 3.4 percent increase in same-store expenses. Weighted average same-store physical occupancy was 96.8 percent as compared to 96.4 percent in the prior year period. The year-to-date annualized rate of turnover was 47.7 percent, representing a 130 basis point decrease year-over-year.

                                                                                                                                                                                                          
Summary of Same-Store Results YTD 2017 versus YTD 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Region          Revenue    Expense     NOI     % of Same-     Same-Store     Number of
                                   Growth                        Growth/                      Growth                          Store                         Occupancy(2)                      Same-Store
                                                                (Decline)                                                 Portfolio(1)                                                         Homes(3)
------------ -------------------- ------- -------------------- --------- -------------------- ------ -------------------- ------------ -------------------- ------------ -------------------- ----------
                                                                           
West                                 4.7%                           2.2%                        5.6%                             40.9%                             96.3%                          11,961
Mid-Atlantic                         3.3%                         (0.5)%                        5.0%                             24.0%                             97.1%                           9,629
Northeast                            3.3%                           8.7%                        1.3%                             17.7%                             97.0%                           3,493
Southeast                            5.4%                           6.6%                        4.9%                             13.0%                             96.9%                           7,683
Southwest         4.9%        5.0%     4.9%           4.4%          97.0%        2,923
------------ -------------------- ------- -------------------- --------- -------------------- ------ -------------------- ------------ -------------------- ------------ -------------------- ----------
Total             4.2%        3.4%     4.5%         100.0%          96.8%       35,689
------------ -------------------- ------- -------------------- --------- -------------------- ------ -------------------- ------------ -------------------- ------------ -------------------- ----------
(1)   Based on YTD 2017 NOI.
(2)                      Weighted average same-store physical occupancy for YTD 2017.
(3)                      During the six months, 35,689 apartment homes were classified
                         as same-store. The Company defines YTD SS Communities as those
                         communities stabilized for two full consecutive calendar years.
                         These communities were owned and had stabilized occupancy and
                         operating expenses as of the beginning of the prior year, were not
                         in process of any substantial redevelopment activities, and not
                         held for disposition.
                          

Development and Redevelopment

At the end of the second quarter, the Company’s development pipeline totaled $967.2 million, consisting of $166.2 million of completed, non-stabilized development projects and $801.0 million of under-construction development projects of which $510.5 million had been funded, leaving $290.5 million to be funded. The $801.0 million of under-construction development projects are scheduled to commence leasing in 2017 and 2018. The development pipeline is currently expected to produce a weighted average spread between stabilized yields and current market cap rates of 150 to 200 basis points.

During the quarter, the UDR/MetLife Joint Venture completed construction on Verve Mountain View, a 155-home community located in Mountain View, CA with an estimated cost to construct of $99.0 million at 100 percent.

Developer Capital Program

At the end of the second quarter, the Company’s Developer Capital Program ("The Program", "DCP") investment totaled $261.0 million. On its investments, the Company targets IRRs that fall between an acquisition and a ground-up development through a mix of current return on investment ranging from 6.5 percent to 11.0 percent, upside participation of 0.0 percent to 50.0 percent upon monetization of an investment and/or fixed price purchase options. The Program consists of:

DCP - West Coast Development Joint Venture: A total original investment of $150.1 million in six development communities with a going-in valuation of $293.5 million at the Company’s 48 percent pro-rata ownership interest. The Company has fixed price purchase options on each of the Joint Venture’s projects commencing one year after completion with option windows ranging between 2017 and 2019.

-- During the quarter, the Company invested $16.1 million (49 percent ownership interest) into Amberglen, a 276-home development located in suburban Portland, OR.

DCP - Other: A total current investment of $110.9 million in three development communities. The Company’s funding commitment totals $156.7 million over the expected life of the investments, leaving $45.8 million yet to fund.

-- During the quarter, the Company provided funding commitments totaling $63.2 million for two development communities located in San Francisco and Washington, D.C.

Further details are available on Attachment 12(B) of the Company’s second quarter Supplemental Financial Information.

Capital Markets and Balance Sheet

As previously disclosed during the quarter, the Company issued $300.0 million of 10-year unsecured debt at a 3.5 percent coupon. Proceeds were used to prepay $70.0 million of 5.85 percent fixed rate debt scheduled to mature in 2018, $107.0 million of L+155 variable rate debt scheduled to mature in 2018 and for general corporate purposes. The Company incurred prepayment costs totaling $4.3 million.

Second quarter UDR/MetLife Joint Venture capital markets activity included refinancing a $174.0 million, construction loan for 399 Fremont, a recently completed, 447-home community located in San Francisco, with a 10-year, $197.3 million secured, fixed-rate loan at 3.47 percent. The Joint Venture also refinanced $135.3 million of 4.59 percent secured debt on two communities into two 7-year secured, fixed-rate loans totaling $135.5 million at a weighted average rate of 3.25 percent.

At June 30, 2017, the Company had approximately $896.4 million in availability through a combination of cash and undrawn capacity on its credit facilities.

The Company’s total indebtedness at June 30, 2017 was $3.6 billion. The Company ended the quarter with fixed-rate debt representing 88.0 percent of its total debt, a total blended interest rate of 3.7 percent and a weighted average maturity of 5.1 years. The Company’s leverage was 33.3 percent versus 33.2 percent a year ago, its net debt-to-EBITDA was flat year-over-year at 5.3x and its fixed charge coverage ratio was 4.9x versus 4.6x a year ago.

Dividend

As previously announced, the Company’s Board of Directors declared a regular quarterly dividend on its common stock for the second quarter of 2017 in the amount of $0.31 per share. The dividend will be paid in cash on July 31, 2017 to UDR common stock shareholders of record as of July 10, 2017. The second quarter 2017 dividend will represent the 179th consecutive quarterly dividend paid by the Company on its common stock.

On an annualized declared basis, the Company’s $1.24 per share 2017 dividend represents a 5 percent increase versus 2016.

Outlook

For the third quarter of 2017, the Company has established
the following earnings guidance ranges:
                                               
 Net income per share                            $0.08 to $0.09
                                                                                                      
 FFO per share                                   $0.46 to $0.47
                                                                                                      
 FFO as Adjusted per share                       $0.46 to $0.47
                                                                                                      
 AFFO per share                                  $0.42 to $0.43
                                                                                                      
For the full-year 2017, the Company has increased or
reaffirmed its previously provided earnings guidance
ranges:
                                                                                                      
                                                Updated Guidance                      Prior Guidance
                                                ----------------                      --------------
                                                                                                      
 Net income per share                            $0.31 to $0.36                       $0.31 to $0.36
                                                                                                      
 FFO per share                                   $1.83 to $1.87                       $1.83 to $1.87
                                                                                                      
 FFO as Adjusted per share                       $1.84 to $1.88                       $1.83 to $1.87
                                                                                                      
 AFFO per share                                  $1.69 to $1.73                       $1.68 to $1.72
                                                                                                      
For the full-year 2017, the Company has increased or
reaffirmed its previously provided same-store growth
guidance
ranges:
                                                                                                      
                                                Updated Guidance                      Prior Guidance
                                                ----------------                      --------------
                                                                                                      
 Revenue                                         3.25% to 4.00%                       3.00% to 4.00%
                                                                                                      
 Expense                                         2.50% to 3.50%                       2.50% to 3.50%
                                                                                                      
 Net operating income                            3.50% to 4.25%                       3.25% to 4.25%
                                                                                                      

Additional assumptions for the Company’s third quarter and full-year 2017 guidance can be found on Attachment 15 of the Company’s second 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 second 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 second 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 July 27, 2017 to discuss second quarter results. 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 August 27, 2017, by dialing 844-512-2921 for domestic and 412-317-6671 for international and entering the confirmation number, 13665558, 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 and Supplemental Financial Information will be available on the Company’s website at ir.udr.com.

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

                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                Attachment 16(B)
                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                    UDR, Inc.
                                                                                                                                                                                                         Definitions and Reconciliations
                                                                                                                                                                                                                      June
                                                                                                                                                                                                                    30, 2017
                                                                                                                                                                                                                   (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 - adjusted for non-recurring items:
The Company defines Interest Coverage Ratio - adjusted for
non-recurring items as net income/(loss), excluding the impact of
interest expense, real estate depreciation and amortization of
wholly owned and joint venture communities, other depreciation and
amortization, income tax provision/(benefit), net and the impact of
other non-recurring items including, but not limited to, net
gain/(loss) on the sale of real estate owned and casualty-related
expenses and recoveries of wholly owned and joint venture
communities divided by total interest, excluding the impact of costs
associated with debt extinguishment.
                                                                                                                                                                                                                                                                                                                                                                                                
Management considers interest coverage - adjusted for non-recurring
items 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 - adjusted for
non-recurring items 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                                                                                                                                                                                                                                                    2Q 2017                                                                      YTD 2017
                                                                                                                                                                                                                                    ---------------------------------------------------------------                     --------------------------------------------------
Income/(loss) from unconsolidated entities                                                                                                                                                                                                             $               (1,426 )                                                            $   9,772
   Management fee                                                                                                                                                                                                                                                       1,144                                                                  2,279
   Interest expense                                                                                                                                                                                                                                                     9,654                                                                 18,637
   Depreciation                                                                                                                                                                                                                                                        14,497                                                                 28,264
   General and administrative                                                                                                                                                                                                                                             148                                                                    277
   West Coast Development JV Preferred Return - Attachment 12(B)                                                                                                                                                                                                       (1,436 )                                                               (2,943 )
   Developer Capital Program - Other                                                                                                                                                                                                                                   (1,568 )                                                               (3,101 )
                                                                                                                                                                                                                                                                          232                                                                   (584 )
   Other (income)/expense (includes 717 Olympic casualty
   (gain)/expense)
   (Gain)/loss on sales                                                                                                                                                                                                                                  -                          (12,158 )
                                                                                                                                                                                                                                    -------------------- -------------------- --------------------                      -------------------- ------- --------------------
Total Joint Venture NOI at UDR’s Ownership Interest                                                                                                                                                                                                    $               21,245                                           $  40,443  
                                                                                                                                                                                                                                    ==================== ==================== ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                
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, annualized, 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, annualized, 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 - adjusted for non-recurring items: The
Company defines net debt-to-EBITDA - adjusted for non-recurring
items as total debt net of cash and cash equivalents divided by
EBITDA - adjusted for non-recurring items. EBITDA is defined as net
income/(loss), excluding the impact of interest expense, real estate
depreciation and amortization of wholly owned and joint venture
communities, other depreciation and amortization and income tax
provision/(benefit), net. EBITDA - adjusted for non-recurring items
is defined as EBITDA excluding the impact of other non-recurring
items including, but not limited to, net gain/(loss) on the sale of
real estate owned and casualty-related expenses and recoveries of
wholly owned and joint venture communities.
                                                                                                                                                                                                                                                                                                                                                                                                
Management considers net debt-to-EBITDA - adjusted for non-recurring
items 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/(loss) and EBITDA - adjusted for non-recurring items 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                                                                                                2Q 2017                                             1Q 2017                                                   4Q 2016                                                    3Q 2016                                             2Q 2016
                                                                                      ---------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------
Net income/(loss) attributable to UDR, Inc.                                                              $  10,157                                                              $  25,967                                                              $              237,617                                                              $  26,956                                                              $  17,946
   Property management                                                                                       6,728                                                                  6,635                                                                               6,603                                                                  6,607                                                                  6,494
   Other operating expenses                                                                                  2,369                                                                  1,691                                                                               2,369                                                                  1,636                                                                  1,892
   Real estate depreciation and amortization                                                               108,450                                                                105,032                                                                             102,537                                                                105,802                                                                105,937
   Interest expense                                                                                         33,866                                                                 30,539                                                                              29,295                                                                 31,954                                                                 30,678
   Casualty-related (recoveries)/charges, net                                                                1,191                                                                    502                                                                              (1,102 )                                                                  205                                                                  1,629
   General and administrative                                                                               11,434                                                                 13,075                                                                              13,256                                                                 11,826                                                                 10,835
   Tax (benefit)/provision, net                                                                                366                                                                    332                                                                              (3,063 )                                                                   94                                                                   (402 )
   (Income)/loss from unconsolidated entities                                                                1,426                                                                (11,198 )                                                                           (35,945 )                                                              (15,285 )                                                                 (325 )
   Interest income and other (income)/expense, net                                                            (515 )                                                                 (427 )                                                                              (481 )                                                                 (478 )                                                                 (540 )
   Joint venture management and other fees                                                                  (3,321 )                                                               (2,570 )                                                                            (2,927 )                                                               (2,997 )                                                               (2,618 )
   Other depreciation and amortization                                                                       1,567                                                                  1,608                                                                               1,458                                                                  1,526                                                                  1,486
   (Gain)/loss on sale of real estate owned, net of tax                                                          -                                                                 (2,132 )                                                                          (200,466 )                                                                    -                                                                 (7,315 )
   Net income/(loss) attributable to noncontrolling interests                               905         2,429                     22,129         2,510         1,618  
                                                                                      -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
Total consolidated NOI                                                                                   $ 174,623                        $ 171,483                        $              171,280                        $ 170,356                        $ 167,315  
                                                                                      ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                             

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 technology 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 June 30, 2017, UDR owned or had an ownership position in 50,338 apartment homes including 3,230 homes under development or in its Developer Capital Program. 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
                                                                                                                                                                        (Unaudited) (1)
                                                                                                                                                                                                                                                                                                             
                                                                                                                                          Three Months Ended                                                                                                                             Six Months Ended
                                                                                                                                               June 30,                                                                                                                                      June 30,
                                                                                       -------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------
In thousands, except per share amounts                                  2017          2016          2017          2016   
----------------------------------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                             
REVENUES:
Rental income                                                                                             $ 244,658                                                              $ 236,168                                                              $ 485,929                                                              $ 468,125
Joint venture management and other fees                                                    3,321                            2,618                            5,891                            5,476  
                                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
   Total revenues                                                                        247,979                          238,786                          491,820                          473,601  
                                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                             
OPERATING EXPENSES:
Property operating and maintenance                                                                           40,612                                                                 38,574                                                                 80,212                                                                 78,020
Real estate taxes and insurance                                                                              29,423                                                                 30,279                                                                 59,611                                                                 58,656
Property management                                                                                           6,728                                                                  6,494                                                                 13,363                                                                 12,873
Other operating expenses                                                                                      2,369                                                                  1,892                                                                  4,060                                                                  3,644
Real estate depreciation and amortization                                                                   108,450                                                                105,937                                                                213,482                                                                211,276
Acquisition costs                                                                                                 -                                                                      -                                                                      -                                                                      -
General and administrative                                                                                   11,434                                                                 10,835                                                                 24,509                                                                 24,679
Casualty-related (recoveries)/charges, net                                                                    1,191                                                                  1,629                                                                  1,693                                                                  1,629
Other depreciation and amortization                                                        1,567                            1,486                            3,175                            3,039  
                                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
   Total operating expenses                                                              201,774                          197,126                          400,105                          393,816  
                                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                             
Operating income                                                                                             46,205                                                                 41,660                                                                 91,715                                                                 79,785
                                                                                                                                                                                                                                                                                                             
Income/(loss) from unconsolidated entities (2)                                                               (1,426 )                                                                  325                                                                  9,772                                                                  1,004
                                                                                                                                                                                                                                                                                                             
Interest expense                                                                                            (29,548 )                                                              (30,678 )                                                              (58,571 )                                                              (61,782 )
(Cost)/benefit associated with debt extinguishment and other                              (4,318 )                                                 -                           (5,834 )                                                 -  
                                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
   Total interest expense                                                                                   (33,866 )                                                              (30,678 )                                                              (64,405 )                                                              (61,782 )
Interest income and other income/(expense), net                                              515                              540                              942                              971  
                                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                             
Income/(loss) before income taxes and gain/(loss) on sale of real                                            11,428                                                                 11,847                                                                 38,024                                                                 19,978
estate owned
Tax (provision)/benefit, net                                                                (366 )                                               402                             (698 )                                               805  
                                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                             
Income/(loss) from continuing operations                                                                     11,062                                                                 12,249                                                                 37,326                                                                 20,783
Gain/(loss) on sale of real estate owned, net of tax                                           -                            7,315                            2,132                           10,385  
                                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                             
Net income/(loss)                                                                                            11,062                                                                 19,564                                                                 39,458                                                                 31,168
Net (income)/loss attributable to redeemable noncontrolling                                                    (854 )                                                               (1,610 )                                                               (3,192 )                                                               (2,515 )
interests in the OP and DownREIT Partnership
Net (income)/loss attributable to noncontrolling interests                                   (51 )                                                (8 )                           (142 )                                              (314 )
                                                                                       -------------------- ------- --------------------                      -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                             
Net income/(loss) attributable to UDR, Inc.                                                                  10,157                                                                 17,946                                                                 36,124                                                                 28,339
Distributions to preferred stockholders - Series E (Convertible)                            (929 )                                              (929 )                                            (1,858 )                                            (1,858 )
                                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                             
Net income/(loss) attributable to common stockholders                                                     $   9,228                                           $  17,017                                           $  34,266                                           $  26,481  
                                                                                       ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                             
Income/(loss) per weighted average common share - basic:                                                  $    0.03                                                              $    0.06                                                              $    0.13                                                              $    0.10
Income/(loss) per weighted average common share - diluted:                                                $    0.03                                                              $    0.06                                                              $    0.13                                                              $    0.10
                                                                                                                                                                                                                                                                                                             
Common distributions declared per share                                                                   $   0.310                                                              $   0.295                                                              $   0.620                                                              $   0.590
                                                                                                                                                                                                                                                                                                             
Weighted average number of common shares outstanding - basic                                                266,972                                                                266,268                                                                266,881                                                                264,362
Weighted average number of common shares outstanding - diluted                                              268,859                                                                268,174                                                                268,742                                                                266,227
(1) See Attachment 16 for definitions and other terms.
(2) During 1Q17, UDR exercised its fixed price option to
acquire CityLine, a West Coast Development JV community in
Seattle, WA, and recorded a $12.2 million gain on consolidation.
 
                                                                                                                                                                          Attachment 2
                                                                                                                                                                                                                                  
                                                                                                                                                                            UDR, Inc.
                                                                                                                                                                      Funds From Operations
                                                                                                                                                                           (Unaudited)
                                                                                                                                                                               (1)
                                                                                                                                                                                                                                                                                                                
                                                                                                                                             Three Months Ended                                                                                                                             Six Months Ended
                                                                                                                                                  June 30,                                                                                                                                      June 30,
                                                                                          -------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------
In thousands, except per share and unit amounts                            2017          2016          2017          2016   
-------------------------------------------------------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                
Net income/(loss) attributable to common stockholders                                                        $   9,228                                                              $  17,017                                                              $  34,266                                                              $  26,481
                                                                                                                                                                                                                                                                                                                
   Real estate depreciation and amortization                                                                   108,450                                                                105,937                                                                213,482                                                                211,276
   Noncontrolling interests                                                                                        905                                                                  1,618                                                                  3,334                                                                  2,829
   Real estate depreciation and amortization on unconsolidated joint                                            14,497                                                                 12,299                                                                 28,264                                                                 22,649
   ventures
   Net gain on the sale of unconsolidated depreciable property                                                       -                                                                      -                                                                (12,158 )                                                                    -
   Net gain on the sale of depreciable real estate owned                                          -                           (7,315 )                                              (552 )                                            (8,700 )
                                                                                          -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Funds from operations ("FFO") attributable to common stockholders                                            $ 133,080                                           $ 129,556                                           $ 266,636                                           $ 254,535  
and unitholders, basic
                                                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                
   Distributions to preferred stockholders - Series E (Convertible)                                                929                                                                    929                                                                  1,858                                                                  1,858
   (2)
                                                                                                                                                                                                                                                       
                                                                                          --------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------
FFO attributable to common stockholders and unitholders, diluted                                             $ 134,009                                           $ 130,485                                           $ 268,494                                           $ 256,393  
                                                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                
FFO per common share and unit, basic                                                                         $    0.46                                           $    0.44                                           $    0.91                                           $    0.88  
                                                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
FFO per common share and unit, diluted                                                                       $    0.45                                           $    0.44                                           $    0.90                                           $    0.87  
                                                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                
Weighted average number of common shares and OP/DownREIT Units                              291,836                          291,458                          291,794                          289,553  
outstanding - basic
                                                                                          -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Weighted average number of common shares, OP/DownREIT Units, and
common stock
   equivalents outstanding - diluted                                                        296,751                          296,392                          296,683                          294,446  
                                                                                          -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                
Impact of adjustments to FFO:
   Cost/(benefit) associated with debt extinguishment and other                                              $   4,318                                                              $       -                                                              $   5,834                                                              $       -
   Long-term incentive plan transition costs                                                                         -                                                                     28                                                                      -                                                                    351
   Net gain on the sale of non-depreciable real estate owned (3)                                                     -                                                                      -                                                                 (1,580 )                                                               (1,685 )
   Casualty-related (recoveries)/charges, net                                                                    1,191                                                                  1,629                                                                  1,693                                                                  1,629
   Casualty-related (recoveries)/charges on unconsolidated joint                                  -                                -                             (881 )                                             1,126  
   ventures, net
                                                                                          -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                             $   5,509                                           $   1,657                                           $   5,066                                           $   1,421  
                                                                                          -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                       
                                                                                          --------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------
FFO as Adjusted attributable to common stockholders and                                                      $ 139,518                                           $ 132,142                                           $ 273,560                                           $ 257,814  
unitholders, diluted
                                                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                
FFO as Adjusted per common share and unit, diluted                                                           $    0.47                                           $    0.45                                           $    0.92                                           $    0.88  
                                                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                
Recurring capital expenditures                                                              (10,682 )                                           (11,052 )                                           (17,473 )                                           (18,013 )
                                                                                          -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
AFFO attributable to common stockholders and unitholders, diluted                                            $ 128,836                                           $ 121,090                                           $ 256,087                                           $ 239,801  
                                                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                
AFFO per common share and unit, diluted                                                                      $    0.43                                           $    0.41                                           $    0.86                                           $    0.81  
                                                                                          ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
(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) The GAAP gain for the six months ended June 30, 2017 and
2016 is $2.1 million and $10.4 million, respectively, of which
$1.6 million and $1.7 million is FFO gain related to the sale of
land parcels. The FFO gain is backed out for FFO as Adjusted.
 
                                                                                                       Attachment 3
                                                                                                                              
                                                                                                         UDR, Inc.
                                                                                                Consolidated Balance Sheets
                                                                                                        (Unaudited)
                                                                                                            (1)
                                                                                                                                                                      
                                                                                                                 June 30,                                                                December 31,
In thousands, except share and per share amounts                                                2017                                                   2016
--------------------------------------------------------------------- -------------------- ------------------------------------------------------------------------- -----------------------------------------------------
                                                                                                                                                                      
                                                                                                                                                                      
ASSETS
                                                                                                                                                                      
Real estate owned:
  Real estate held for investment                                                                             $  9,423,191                                                              $  9,271,847
     Less: accumulated depreciation                                                          (3,131,603 )                                           (2,923,072 )
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------
  Real estate held for investment, net                                                                           6,291,588                                                                 6,348,775
  Real estate under development
     (net of accumulated depreciation of $428 and $0)                                                              465,301                                                                   342,282
  Real estate held for disposition
     (net of accumulated depreciation of $0 and $553)                                                 -                               1,071  
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Total real estate owned, net of accumulated depreciation                                                         6,756,889                                                                 6,692,128
                                                                                                                                                                      
   Cash and cash equivalents                                                                                         1,411                                                                     2,112
   Restricted cash                                                                                                  19,602                                                                    19,994
   Notes receivable, net                                                                                            17,290                                                                    19,790
   Investment in and advances to unconsolidated joint ventures, net                                                843,167                                                                   827,025
   Other assets                                                                                 129,575                             118,535  
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Total assets                                                                                                  $  7,767,934                                           $  7,679,584  
                                                                                           ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                      
LIABILITIES AND EQUITY
                                                                                                                                                                      
Liabilities:
   Secured debt                                                                                               $    806,647                                                              $  1,130,858
   Unsecured debt                                                                                                2,828,001                                                                 2,270,620
   Real estate taxes payable                                                                                        19,595                                                                    17,388
   Accrued interest payable                                                                                         28,482                                                                    29,257
   Security deposits and prepaid rent                                                                               35,336                                                                    34,238
   Distributions payable                                                                                            91,447                                                                    86,936
   Accounts payable, accrued expenses, and other liabilities                                     92,161                             103,835  
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Total liabilities                                                                                                3,901,669                                                                 3,673,132
                                                                                                                                                                      
Redeemable noncontrolling interests in the OP and DownREIT                                                         967,797                                                                   909,482
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, 2016)                                                      46,457                                                                    46,457
     16,038,692 shares of Series F outstanding (16,196,889 shares
       at December 31, 2016)                                                                                             1                                                                         1
   Common stock, $0.01 par value; 350,000,000 shares authorized
     267,557,894 shares issued and outstanding (267,259,469 shares at                                                2,676                                                                     2,673
     December 31, 2016)
   Additional paid-in capital                                                                                    4,640,550                                                                 4,635,413
   Distributions in excess of net income                                                                        (1,792,674 )                                                              (1,585,825 )
   Accumulated other comprehensive income/(loss), net                                            (4,395 )                                               (5,609 )
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Total stockholders’ equity                                                                                       2,892,615                                                                 3,093,110
   Noncontrolling interests                                                                       5,853                               3,860  
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Total equity                                                                                  2,898,468                           3,096,970  
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Total liabilities and equity                                                                                  $  7,767,934                                           $  7,679,584  
                                                                                           ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                      
(1) See Attachment 16 for definitions and other terms.
                                                                                                                                                                                                      
                                                                                                                                      Attachment 4(C)
                                                                                                                                                           
                                                                                                                                         UDR, Inc.
                                                                                                                              Selected Financial Information
                                                                                                                                         (Dollars
                                                                                                                                       in Thousands)
                                                                                                                                      (Unaudited) (1)
                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                     Quarter Ended
Coverage Ratios                                                                                                                                                                                                                                   June 30, 2017
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------
                                                                                                                                                                                                                                                            
Net income/(loss)                                                                                                                                                                                                                                                             $     11,062
                                                                                                                                                                                                                                                            
Adjustments:
   Interest expense                                                                                                                                                                                                                                                                 33,866
   Real estate depreciation and amortization                                                                                                                                                                                                                                       108,450
   Real estate depreciation and amortization on unconsolidated joint                                                                                                                                                                                                                14,497
   ventures
   Other depreciation and amortization                                                                                                                                                                                                                                               1,567
   Income tax provision/(benefit), net                                                                                                                                                                                                                              366
                                                                                                                                                                                                                                                          -------------------- ----------
EBITDA                                                                                                                                                                                                                                                                        $    169,808
                                                                                                                                                                                                                                                          -------------------- ----------
                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                  1,191
    Casualty-related (recoveries)/charges, net
                                                                                                                                                                                                                                                          -------------------- ----------
EBITDA - adjusted for non-recurring items                                                                                                                                                                                                                                     $    170,999
                                                                                                                                                                                                                                                          ==================== ==========
                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                           --------------------------------
Annualized EBITDA - adjusted for non-recurring items                                                                                                                                                                                                                          $    683,996
                                                                                                                                                                                                                                                          -------------------- ----------
                                                                                                                                                                                                                                                            
   Interest expense                                                                                                                                                                                                                                                                 33,866
   Capitalized interest expense                                                                                                                                                                                                                                   4,646
                                                                                                                                                                                                                                                          -------------------- ----------
Total interest                                                                                                                                                                                                                                                                $     38,512
   Costs associated with debt extinguishment                                                                                                                                                                                                                    (4,318)
                                                                                                                                                                                                                                                          -------------------- ----------
Total interest - adjusted for non-recurring items                                                                                                                                                                                                                             $     34,194
                                                                                                                                                                                                                                                            
Preferred dividends                                                                                                                                                                                                                                                           $        929
                                                                                                                                                                                                                                                            
   Total debt                                                                                                                                                                                                                                                                 $  3,634,648
   Cash                                                                                                                                                                                                                                                           1,411
                                                                                                                                                                                                                                                          -------------------- ----------
Net debt                                                                                                                                                                                                                                                                      $  3,633,237
                                                                                                                                                                                                                                                           -------------------- ----------
                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                            
Interest Coverage Ratio - adjusted for non-recurring items                                                                                                                                                                                                                            5.0x
                                                                                                                                                                                                                                                          ================================
                                                                                                                                                                                                                                                            
Fixed Charge Coverage Ratio - adjusted for non-recurring items                                                                                                                                                                                                                        4.9x
                                                                                                                                                                                                                                                          ================================
                                                                                                                                                                                                                                                            
Net Debt-to-EBITDA - adjusted for non-recurring items                                                                                                                                                                                                                                 5.3x
                                                                                                                                                                                                                                                          ================================
                                                                                                                                                                                                                                                            
                                                              
------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- ---------------------------------- -------------------- ---------------------------------------------------- --------------------------------
                                                                                                                                                                                                                                                            
Debt Covenant Overview
                                                                                                                                                                                                                                                            
Unsecured Line of Credit Covenants (2)                                                                                                  Required                             Actual                          Compliance
--------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------- -------------------- ---------------------------------------------------- --------------------------------
 
Maximum Leverage Ratio                                                                                                                          less-than or equal to60.0%                                    34.4% (2)                                               Yes
Minimum Fixed Charge Coverage Ratio                                                                                                            greater-than or equal to1.5x                                     3.7x                                                  Yes
Maximum Secured Debt Ratio                                                                                                                      less-than or equal to40.0%                                      13.2%                                                 Yes
Minimum Unencumbered Pool Leverage Ratio                                                                                                      greater-than or equal to150.0%                                   344.3%                                                 Yes
 
 
Senior Unsecured Note Covenants (3)                                                                                                     Required                             Actual                          Compliance
--------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------- -------------------- ---------------------------------------------------- --------------------------------
 
Debt as a percentage of Total Assets                                                                                                            less-than or equal to65.0%                                    33.4% (3)                                               Yes
Consolidated Income Available for Debt Service to Annual Service                                                                               greater-than or equal to1.5x                                     5.0x                                                  Yes
Charge
Secured Debt as a percentage of Total Assets                                                                                                    less-than or equal to40.0%                                      7.4%                                                  Yes
Total Unencumbered Assets to Unsecured Debt                                                                                                   greater-than or equal to150.0%                                   295.8%                                                 Yes
 
 
Securities Ratings                            Debt                             Preferred                            Outlook                      Commercial Paper
------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- ---------------------------------- -------------------- ---------------------------------------------------- --------------------------------
                                                                                                                                                                                                                                                            
Moody’s Investors Service                                                                              Baa1                                                  Baa2                                                  Stable                                                 P-2
Standard & Poor’s                                                                                      BBB+                                                  BBB-                                                  Stable                                                 A-2
                                                                                                                                                                                                                                                            
                                                              
------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- ---------------------------------- -------------------- ---------------------------------------------------- --------------------------------
                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                    Gross                                                % of
                                                     Number of                                    2Q 2017 NOI (1)                                                                                              Carrying Value                                         Total Gross
Asset Summary                       Homes                       ($000s)                           % of NOI                             ($000s)                       Carrying Value
------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- ---------------------------------- -------------------- ---------------------------------------------------- --------------------------------
                                                                                                                                                                                                                                                            
Unencumbered assets                                          31,717                                         $    144,657                                                   82.8%                                         $  8,217,616                                                83.1%
Encumbered assets                                             8,105                            29,966                                                   17.2%                         1,671,304                             16.9%
                                               --------------------                      -------------------- ----------                      ----------------------------------                      -------------------- ----------                      -------------------- ----------
                                                             39,822                                         $    174,623                                                  100.0%                                         $  9,888,920                            100.0%
                                               ====================                      ==================== ==========                      ==================================                      ==================== ==========                      ==================== ==========
(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
                                                                                                June
                                                                                              30, 2017
                                                                                             (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 third 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                                                                  (0.18 )                                                                (0.19 )
Depreciation                                                                                       1.70                                                                   1.70
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                                                                           (0.01 )                                                                (0.01 )
Acquisition-related and other costs                                                                   -                                                                      -
Cost associated with debt extinguishment                                                           0.02                                                                   0.02
Casualty-related (recoveries)/charges                                              -                                -  
                                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
Forecasted FFO as Adjusted per diluted share and unit                                         $    1.84                                           $    1.88  
                                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
Recurring capital expenditures                                                 (0.15 )                                             (0.15 )
                                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
Forecasted AFFO per diluted share and unit                                                    $    1.69                                           $    1.73  
                                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                   
                                                                                                                                                   
                                                                                                                                                   
                                                                                                                                    3Q 2017
                                                                                                   Low                                                                   High
                                                                           --------------------------------------------------                     --------------------------------------------------
                                                                                                                                                   
Forecasted net income per diluted share                                                       $    0.08                                                              $    0.09
Conversion from GAAP share count                                                                  (0.05 )                                                                (0.05 )
Depreciation                                                                                       0.43                                                                   0.43
Noncontrolling interests                                                                              -                                                                      -
Preferred dividends                                                                -                                -  
                                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
Forecasted FFO per diluted share and unit                                                     $    0.46                                           $    0.47  
                                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
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                                         $    0.46                                           $    0.47  
                                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
Recurring capital expenditures                                                 (0.04 )                                             (0.04 )
                                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
Forecasted AFFO per diluted share and unit                                                    $    0.42                                           $    0.43  
                                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170726006234r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170726006234/en/

SOURCE: UDR, Inc.

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


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