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 UDR Announces Fourth Quarter and Full-Year 2017 Results
   Tuesday, February 06, 2018 4:16:00 PM ET

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

-- Net income per share was $0.25, Funds from Operations ("FFO") per share was $0.46, FFO as Adjusted per share was $0.48, and Adjusted Funds from Operations ("AFFO") per share was $0.42.

-- Net income attributable to common stockholders was $68.4 million as compared to $236.7 million in the prior year period. The decrease was primarily due to lower gains on the sale of real estate.

-- Year-over-year same-store ("SS") revenue, expense and net operating income ("NOI") growth was 3.1 percent, 2.9 percent and 3.1 percent, respectively.

-- Developer Capital Program ("DCP") transactions completed during the quarter included: -- Purchased Steele Creek, a 218-home community located in Denver, CO for $141.5 million. The Company’s profit participation totaled $14.9 million, making its effective basis $126.6 million.



-- Sold Katella Grand I, a 399-home community located in Anaheim, CA, for $148.0 million.

-- Sold two wholly-owned communities, Vista Del Rey and Villas at Carlsbad, located in Southern California, for $69.0 million.

-- Subsequent to quarter end, entered into a contract to sell Pacific Shores, a 264-home community located in Orange County for $90.5 million, which is expected to close in the first quarter of 2018 subject to customary closing conditions.

-- Issued $300.0 million of 10-year unsecured debt at a 3.50 percent coupon and redeemed $300.0 million of 4.25 percent unsecured debt originally scheduled to mature in mid-2018, resulting in $3.4 million in prepayment costs.

-- Subsequent to quarter end, Thomas W. Toomey was named Chairman of the Company’s Board in addition to his responsibilities as President and Chief Executive Officer. James D. Klingbeil was appointed Lead Independent Director of the Board.

Full-Year 2017 Highlights:

-- Net income per share was $0.44, FFO per share was $1.83, FFO as Adjusted per share was $1.87, and AFFO per share was $1.72.

-- Net income attributable to common stockholders was $117.9 million as compared to $289.0 million in the prior year period. The decrease was primarily due to lower gains on the sale of real estate.

-- Year-over-year SS revenue, expense and NOI growth was 3.7 percent, 3.5 percent and 3.8 percent, respectively.

-- Increased the Company’s declared dividend per share to $1.24, or by 5.1 percent year-over-year.

-- Completed construction on two UDR/MetLife JV developments comprising 536 homes in total, located in the San Francisco Bay Area and Orange County.

-- Expanded the DCP through investments in five communities comprising 1,253 homes in total, located in Seattle, Washington, D.C., San Francisco, Portland, OR, and Nashville, TN.

-- Completed $477.3 million in acquisitions/dispositions within the DCP, by acquiring two assets valued at $228.0 million and disposing of two assets valued at $249.3 million.

-- Prepaid $575.3 million of higher-cost debt and issued $600.0 million of 10-year unsecured debt at a weighted average 3.50 percent coupon.

-- Established a $500.0 million unsecured U.S. commercial paper program.

                                                                       Q4 2017                                              Q4 2016                                              FY 2017                                              FY 2016
---------------------------------------------------------------- -------------------- -------------------- --------------------------------------------------------------------- -------------------- --------------------------------------------------------------------- -------------------- --------------------------------------------------------------------- -------------------- -------------------------------------------------
Net income per common share, diluted                                                    $   0.25                          $   0.88                          $   0.44                          $   1.08  
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
Conversion from GAAP share count                                                          (0.024 )                                             (0.077 )                                             (0.041 )                                             (0.103 )
Net gain on the sale of depreciable real estate owned                                                                           (0.209 )                                                                                   (0.799 )                                                                                   (0.260 )                                                                                   (0.870 )
Depreciation and amortization                                                                                                    0.416                                                                                      0.390                                                                                      1.642                                                                                      1.582
Noncontrolling interests and preferred dividends                        0.024          0.078          0.050          0.106  
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
FFO per common share and unit, diluted                                                  $   0.46                          $   0.47                          $   1.83                          $   1.80  
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
Acquisition-related costs/(fees)                                                                                                 0.000                                                                                      0.001                                                                                      0.001                                                                                      0.001
Cost/(benefit) associated with debt extinguishment, other                                                                        0.011                                                                                          -                                                                                      0.031                                                                                      0.006
Long-term incentive plan transition costs                                                                                            -                                                                                      0.001                                                                                          -                                                                                      0.003
Net gain on the sale of non-depreciable real estate owned                                                                            -                                                                                          -                                                                                     (0.005 )                                                                                   (0.006 )
Legal claims, net of tax                                                                                                             -                                                                                          -                                                                                          -                                                                                     (0.002 )
Net loss on sale of unconsolidated land                                                                                              -                                                                                          -                                                                                          -                                                                                      0.003
Severance costs and other restructuring expense                                                                                  0.002                                                                                      0.003                                                                                      0.002                                                                                      0.003
Tax benefit - conversion of TRS entities into REITs                                                                     -                                                                                     (0.008 )                                                                                        -                                                                                     (0.008 )
Casualty-related charges/(recoveries), including JVs, net               0.002         (0.005 )                           0.012         (0.010 )
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
FFO as Adjusted per common share and unit, diluted                                      $   0.48                          $   0.46                          $   1.87                          $   1.79  
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
Recurring capital expenditures                                         (0.054 )                          (0.054 )                          (0.155 )                          (0.160 )
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
AFFO per common share and unit, diluted                                                 $   0.42                          $   0.40                          $   1.72                          $   1.63  
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- ------ --------------------
A reconciliation of FFO, FFO as Adjusted and AFFO to
GAAP Net income attributable to common stockholders can be found
on Attachment 2 of the Company’s fourth quarter Supplemental
Financial Information.
 

Operations

In the fourth quarter, total revenue increased by $9.9 million or 4.1 percent, to $252.9 million. This increase was primarily attributable to growth in revenue from same-store communities and stabilized, non-mature communities.

In the fourth quarter, same-store NOI increased 3.1 percent year-over-year and was driven by same-store revenue growth of 3.1 percent and a 2.9 percent increase in same-store expenses. Weighted average same-store physical occupancy was flat year-over-year at 96.8 percent. The fourth quarter annualized rate of turnover was 41.2 percent, representing a 40 basis point decline year-over-year.

Summary of Same-Store Results Fourth Quarter 2017 versus Fourth Quarter 2016

Region            Revenue      Expense       NOI          % of          Same-Store       Number of
                                                        Growth                                             Growth/                                           Growth                                            Same-Store                                            Occupancy(2)                                           Same-Store
                                                                                                          (Decline)                                                                                           Portfolio(1)                                                                                                   Homes(3)
------------ -------------------- -------------------- ------- -------------------- -------------------- --------- -------------------- -------------------- ------ -------------------- -------------------- ------------ -------------------- -------------------- ------------ -------------------- -------------------- ----------
                                                                                       
West                                                      4.2%                                              (0.2)%                                             5.6%                                                  40.4%                                                  96.3%                                               11,743
Mid-Atlantic                                              1.8%                                                3.5%                                             1.1%                                                  25.5%                                                  97.3%                                               10,480
Northeast                                                 2.1%                                                6.7%                                             0.1%                                                  16.8%                                                  97.1%                                                3,493
Southeast                                                 3.7%                                                3.9%                                             3.5%                                                  13.0%                                                  96.7%                                                7,683
Southwest           3.4%          3.3%       3.4%             4.3%            96.6%          2,923
------------ -------------------- -------------------- ------- -------------------- -------------------- --------- -------------------- -------------------- ------ -------------------- -------------------- ------------ -------------------- -------------------- ------------ -------------------- -------------------- ----------
Total               3.1%          2.9%       3.1%           100.0%            96.8%         36,322
------------ -------------------- -------------------- ------- -------------------- -------------------- --------- -------------------- -------------------- ------ -------------------- -------------------- ------------ -------------------- -------------------- ------------ -------------------- -------------------- ----------
(1)   Based on Q4 2017 NOI.
(2)                      Weighted average same-store physical occupancy for the
                         quarter.
(3)                      During the fourth quarter, 36,322 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 1.4 percent in the fourth quarter of 2017 on same-store revenue growth of 0.1 percent and a 3.1 percent decrease in same-store expenses. Weighted average same-store physical occupancy increased by 10 basis points sequentially to 96.8 percent.

For the twelve months ended December 31, 2017, total revenue increased by $35.9 million or 3.7 percent, to $995.8 million. This increase was primarily attributable to growth in revenue from same-store communities and stabilized, non-mature communities.

For the twelve months ended December 31, 2017, same-store NOI increased 3.8 percent year-over-year and was driven by same-store revenue growth of 3.7 percent and a 3.5 percent increase in same-store expenses. Weighted average same-store physical occupancy was 96.8 percent as compared to 96.6 percent in the prior year. The full-year rate of turnover was 49.8 percent, representing a 110 basis point decline year-over-year.

Summary of Same-Store Results Full-Year 2017 versus Full-Year 2016

Region            Revenue     Expense      NOI          % of          Same-Store       Number of
                                                        Growth                                            Growth                                           Growth                                            Same-Store                                            Occupancy(2)                                           Same-Store
                                                                                                                                                                                                            Portfolio(1)                                                                                                   Homes(3)
------------ -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------------ -------------------- -------------------- ------------ -------------------- -------------------- ----------
                                                                                     
West                                                      4.4%                                              3.5%                                             4.7%                                                  40.9%                                                  96.4%                                               11,743
Mid-Atlantic                                              2.5%                                              0.1%                                             3.6%                                                  24.0%                                                  97.1%                                                9,629
Northeast                                                 2.8%                                              8.9%                                             0.4%                                                  17.5%                                                  97.1%                                                3,493
Southeast                                                 4.6%                                              2.2%                                             5.7%                                                  13.3%                                                  96.8%                                                7,683
Southwest           4.2%        5.5%       3.3%             4.3%            96.7%          2,923
------------ -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------------ -------------------- -------------------- ------------ -------------------- -------------------- ----------
Total               3.7%        3.5%       3.8%           100.0%            96.8%         35,471
------------ -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------------ -------------------- -------------------- ------------ -------------------- -------------------- ----------
(1)   Based on YTD 2017 NOI.
(2)                      Weighted average same-store physical occupancy for YTD 2017.
(3)                      During the twelve months, 35,471 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 Activity

At the end of the fourth quarter, the Company’s development pipeline totaled $864.5 million at its pro-rata ownership interest, consisting of a $54.0 million completed, non-stabilized project and $810.5 million of under-construction development projects, of which $664.6 million had been funded, leaving $145.9 million to be funded. Of the $810.5 million of under-construction development projects, $379.5 million commenced leasing in 2017 and $431.0 million is scheduled to commence leasing in 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 Company completed the redevelopment of Thirty377, a 305-home community in Dallas. The total cost of the redevelopment was $9.5 million.

Developer Capital Program

At the end of the fourth quarter, the Company’s DCP investment, including accrued return, totaled $158.9 million. Activity during the quarter consisted of:

-- As previously announced, the Company purchased Steele Creek, a 218-home community located in Denver, CO, for $141.5 million. The Company’s profit participation in the transaction totaled $14.9 million, making its effective basis $126.6 million. See the Company’s third quarter 2017 earnings press release for further information.

-- As previously announced, the West Coast Development Joint Venture ("WCDJV") sold Katella Grand I, a 399-home community located in Anaheim, CA for $148.0 million. See the Company’s third quarter 2017 earnings press release for further information.

-- The Company’s investment balance in DCP-Other projects increased by $16.8 million. At quarter end, the Company’s investment balance totaled $55.9 million in DCP-Other projects.

Wholly-Owned Transactional Activity

During the quarter, the Company sold two communities, Vista Del Rey and Villas at Carlsbad, comprising 218 homes in total, located in Southern California, for $69.0 million or $316,500 per home. At the time of the sale, the communities had a weighted average monthly revenue per occupied home of $1,986 and were 50 years old on average.

Subsequent to quarter end, the Company entered into a contract to sell Pacific Shores, a 264-home community, located in Orange County, for $90.5 million, or $342,800 per home. The transaction is expected to close in the first quarter of 2018 subject to customary closing conditions. At the end of the fourth quarter, the community had an average monthly revenue per occupied home of $2,053 and was 47 years old.

Capital Markets and Balance Sheet

As previously announced, during the fourth quarter, the Company issued $300.0 million of 10-year unsecured debt at a 3.50 percent coupon. Proceeds were used to redeem all $300.0 million of the Company’s outstanding 4.25 percent senior unsecured notes scheduled to mature on June 1, 2018, and for general corporate purposes. The Company incurred prepayment costs totaling $3.4 million.

At December 31, 2017, the Company had approximately $855.3 million in availability, through a combination of cash and undrawn capacity, on its credit facilities.

The Company’s total indebtedness at December 31, 2017 was $3.7 billion. The Company ended the quarter with fixed-rate debt representing 87.0 percent of its total debt, a total blended interest rate of 3.7 percent and a weighted average maturity of 5.3 years. The Company’s leverage was 33.2 percent versus 32.1 percent a year ago, its net-debt-to-EBITDA was 5.3x versus 5.1x a year ago and its fixed charge coverage ratio was flat year-over year at 4.8x.

Board of Directors

Subsequent to quarter end, the Company’s Board of Directors appointed Thomas W. Toomey to the position of Chairman of the Board, effective January 1, 2018, in addition to his current responsibilities as the Company’s President and Chief Executive Officer. James D. Klingbeil, who had served as Chairman since 2010, was named Lead Independent Director of the Board.

Dividend

As previously announced, the Company’s Board of Directors declared a regular quarterly dividend on its common stock for the fourth quarter of 2017 in the amount of $0.31 per share. The dividend was paid in cash on January 31, 2018 to UDR common stockholders of record as of January 10, 2018. The fourth quarter 2017 dividend represented the 181st consecutive quarterly dividend paid by the Company on its common stock.

In conjunction with this release, the Company has declared a 2018 annualized dividend per share of $1.29, a 4.0 percent increase over 2017.

Outlook

For the first quarter of 2018, the Company has established the following earnings guidance ranges:

Net income per share                 $0.06 to $0.08
FFO per share                                                                                                    $0.46 to $0.48
FFO as Adjusted per share                                                                                        $0.46 to $0.48
AFFO per share                                                                                                   $0.44 to $0.46
                                                                                                               

For the full-year 2018, the Company has established the following earnings guidance ranges:

Net income per share                 $0.26 to $0.30
FFO per share                                                                                                    $1.91 to $1.95
FFO as Adjusted per share                                                                                        $1.91 to $1.95
AFFO per share                                                                                                   $1.76 to $1.80
                                                                                                               

Full-Year 2017 FFO as Adjusted per share as compared to full-year 2018 guidance at the midpoint:

The difference between the Company’s full-year 2017 FFO as Adjusted of $1.87 per share and the $1.93 midpoint of its full-year 2018 FFO as Adjusted guidance range is primarily due to:

-- A positive impact of approximately $0.07 from same-store, joint venture and commercial operations;

-- A negative impact of approximately $0.01 from higher LIBOR and other non-core items;

-- A neutral impact from development and Developer Capital Program investments after accounting for costs to fund; and

-- Flat general and administrative expense year-over-year.

For the full-year 2018, the Company has established the following same-store growth guidance ranges:

Revenue                         2.50% to 3.50%
Expense                                                                                                     2.50% to 3.50%
Net operating income                                                                                        2.50% to 3.50%
                                                                                                          

Additional assumptions for the Company’s first quarter and full-year 2018 guidance can be found on Attachment 15 of the Company’s fourth quarter Supplemental Financial Information. A reconciliation of FFO per share, FFO as Adjusted per share and AFFO per share to GAAP Net income per share can be found on Attachment 16(D) of the Company’s fourth quarter Supplemental Financial Information. Non-GAAP financial measures and other terms, as used in this earnings release, are defined and further explained on Attachments 16(A) through 16(D), "Definitions and Reconciliations," of the Company’s fourth quarter Supplemental Financial Information.

Supplemental Information

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

Conference Call and Webcast Information

UDR will host a webcast and conference call at 1:00 p.m. Eastern Time on February 7, 2018 to discuss fourth quarter and full-year results, recent events, 2018 guidance and management’s views on the economy and the apartment industry. The webcast will be available on UDR’s website at ir.udr.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.

To participate in the teleconference dial 877-705-6003 for domestic and 201-493-6725 for international. A passcode is not necessary.

A replay of the conference call will be available through March 7, 2018, by dialing 844-512-2921 for domestic and 412-317-6671 for international and entering the confirmation number, 13675009, 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 fourth 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
                                       December 31, 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
consolidated 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 consolidated interest,
excluding the impact of costs associated with debt extinguishment.
 
Management considers Interest Coverage Ratio - 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
Ratio - 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                                                                                                                            4Q 2017                                                               YTD 2017
                                                                                                                  --------------------------------------------------                     --------------------------------------------------
Income/(loss) from unconsolidated entities                                                                                           $  19,666                                                              $  31,257
  Management fee                                                                                                                         1,206                                                                  4,654
  Interest expense                                                                                                                       9,446                                                                 37,933
  Depreciation                                                                                                                          14,128                                                                 57,102
  General and administrative                                                                                                               139                                                                    563
  West Coast Development JV Preferred Return - Attachment 12(B)                                                                         (1,375 )                                                               (5,932 )
  Developer Capital Program - Other                                                                                                     (1,081 )                                                               (6,370 )
  Other (income)/expense (includes 717 Olympic casualty (gain)/expense)                                                                     94                                                                   (311 )
  (Gain)/loss on sales                                                                                              (20,850 )                                           (35,363 )
                                                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------
Total Joint Venture NOI at UDR’s Ownership Interest                                                                                  $  21,373                                           $  83,533  
                                                                                                                  ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                       
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 JV 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 JV 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 consolidated 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 consolidated
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 and other revenues less adjustments for
concessions, vacancy loss and bad debt. Rental expenses include real
estate taxes, insurance, personnel, utilities, repairs and
maintenance, administrative and marketing. Excluded from NOI is
property management expense which is calculated as 2.75% of property
revenue to cover the regional supervision and accounting costs
related to consolidated property operations, and land rent.
                                                        
Management considers NOI a useful metric for investors as it is a
more meaningful representation of a community’s continuing operating
performance than net income as it is prior to corporate-level
expense allocations, general and administrative costs, capital
structure and depreciation and amortization and is a widely used
input, along with capitalization rates, in the determination of real
estate valuations. A reconciliation from net income attributable to
UDR, Inc. to NOI is provided below.
                                                                                                                                                                                                                                                                                        
In thousands                                                                                                                 4Q 2017                                               3Q 2017                                               2Q 2017                                               1Q 2017                                                                  4Q 2016
                                                                                                       ---------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------                      ---------------------------------------------------
Net income/(loss) attributable to UDR, Inc.                                                                               $  69,280                                                                                   $  16,190                                                                                   $  10,157                                                                                   $  25,967                                                                                   $  237,617
  Property management                                                                                                         6,878                                                                                       6,827                                                                                       6,728                                                                                       6,635                                                                                        6,603
  Other operating expenses                                                                                                    3,050                                                                                       1,950                                                                                       2,369                                                                                       1,691                                                                                        2,369
  Real estate depreciation and amortization                                                                                 109,401                                                                                     107,171                                                                                     108,450                                                                                     105,032                                                                                      102,537
  Interest expense                                                                                                           34,211                                                                                      30,095                                                                                      33,866                                                                                      30,539                                                                                       29,295
  Casualty-related charges/(recoveries), net                                                                                    586                                                                                       2,056                                                                                       1,191                                                                                         502                                                                                       (1,102 )
  General and administrative                                                                                                 11,590                                                                                      12,467                                                                                      11,434                                                                                      13,075                                                                                       13,256
  Tax (benefit)/provision, net                                                                                               (1,065 )                                                                                       127                                                                                         366                                                                                         332                                                                                       (3,063 )
  (Income)/loss from unconsolidated entities                                                                                (19,666 )                                                                                    (1,819 )                                                                                     1,426                                                                                     (11,198 )                                                                                    (35,945 )
  Interest income and other (income)/expense, net                                                                              (548 )                                                                                      (481 )                                                                                      (515 )                                                                                      (427 )                                                                                       (481 )
  Joint venture management and other fees                                                                                    (2,764 )                                                                                    (2,827 )                                                                                    (3,321 )                                                                                    (2,570 )                                                                                     (2,927 )
  Other depreciation and amortization                                                                                         1,648                                                                                       1,585                                                                                       1,567                                                                                       1,608                                                                                        1,458
  (Gain)/loss on sale of real estate owned, net of tax                                                                      (41,272 )                                                                                         -                                                                                           -                                                                                      (2,132 )                                                                                   (200,466 )
  Net income/(loss) attributable to noncontrolling interests                                               6,347           1,380             905           2,429           22,129  
                                                                                                       -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------------- -------- --------------------
Total consolidated NOI                                                                                                    $ 177,676                          $ 174,721                          $ 174,623                          $ 171,483                          $  171,280  
                                                                                                       ==================== ======= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

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 December 31, 2017, UDR owned or had an ownership position in 49,728 apartment homes including 2,444 homes under development or in its Developer Capital Program - West Coast Development JV. For over 46 years, UDR has delivered long-term value to shareholders, the best standard of service to residents and the highest quality experience for associates.

 
                                                                                                                                        Attachment 1
                                                                                                               
                                                                                                                                          UDR, Inc.
                                                                                                                            Consolidated Statements of Operations
                                                                                                                                       (Unaudited) (1)
                                                                                                                                                                                                                                                                         
                                                                                                                                  Three Months Ended                                                                                           Twelve Months Ended
                                                                                                                                     December 31,                                                                                                 December 31,
                                                                                                            --------------------------------------------------------------                                          -------------------------------------------------------------------------
In thousands, except per share amounts                                   2017          2016          2017               2016
----------------------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                         
REVENUES:
Rental income                                                                                               $ 250,116                                           $ 240,081                                           $ 984,309                                                      $ 948,461
Joint venture management and other fees                                                                         2,764                                               2,927                                              11,482                                                         11,400
                                                                                                            ---------                                           ---------                                           ---------                                           --------------------
  Total revenues                                                                                              252,880                                             243,008                                             995,791                                                        959,861
                                                                                                            ---------                                           ---------                                           ---------                                           --------------------
                                                                                                                                                                                                                                                                         
OPERATING EXPENSES:
Property operating and maintenance                                                                             42,086                                              40,075                                             164,660                                                        159,947
Real estate taxes and insurance                                                                                30,354                                              28,726                                             121,146                                                        115,429
Property management                                                                                             6,878                                               6,603                                              27,068                                                         26,083
Other operating expenses                                                                                        3,050                                               2,369                                               9,060                                                          7,649
Real estate depreciation and amortization                                                                     109,401                                             102,537                                             430,054                                                        419,615
Acquisition costs                                                                                                  27                                                 152                                                 371                                                            213
General and administrative                                                                                     11,563                                              13,104                                              48,195                                                         49,548
Casualty-related charges/(recoveries), net                                                                        586                                             (1,102)                                               4,335                                                            732
Other depreciation and amortization                                                                             1,648                                               1,458                                               6,408                                                          6,023
                                                                                                            ---------                                           ---------                                           ---------                                           --------------------
  Total operating expenses                                                                                    205,593                                             193,922                                             811,297                                                        785,239
                                                                                                            ---------                                           ---------                                           ---------                                           --------------------
                                                                                                                                                                                                                                                                         
Operating income                                                                                               47,287                                              49,086                                             184,494                                                        174,622
                                                                                                                                                                                                                                                                         
Income/(loss) from unconsolidated entities (2)                                                                 19,666                                              35,945                                              31,257                                                         52,234
                                                                                                                                                                                                                                                                         
Interest expense                                                                                             (30,833)                                            (29,295)                                           (119,499)                                                      (121,302)
(Cost)/benefit associated with debt extinguishment and other                                                  (3,378)                                                   -                                             (9,212)                                                        (1,729)
                                                                                                            ---------                                           ---------                                           ---------                                           --------------------
  Total interest expense                                                                                     (34,211)                                            (29,295)                                           (128,711)                                                      (123,031)
Interest income and other income/(expense), net                                                                   548                                                 481                                               1,971                                                          1,930
                                                                                                            ---------                                           ---------                                           ---------                                           --------------------
                                                                                                                                                                                                                                                                         
Income/(loss) before income taxes and gain/(loss) on sale of real                                              33,290                                              56,217                                              89,011                                                        105,755
estate owned
Tax (provision)/benefit, net                                                                                    1,065                                               3,063                                                 240                                                          3,774
                                                                                                            ---------                                           ---------                                           ---------                                           --------------------
                                                                                                                                                                                                                                                                         
Income/(loss) from continuing operations                                                                       34,355                                              59,280                                              89,251                                                        109,529
Gain/(loss) on sale of real estate owned, net of tax                                                           41,272                                             200,466                                              43,404                                                        210,851
                                                                                                            ---------                                           ---------                                           ---------                                           --------------------
                                                                                                                                                                                                                                                                         
Net income/(loss)                                                                                              75,627                                             259,746                                             132,655                                                        320,380
Net (income)/loss attributable to redeemable noncontrolling                                                   (6,290)                                            (22,114)                                            (10,933)                                                       (27,282)
interests in the OP and DownREIT Partnership (3)
Net (income)/loss attributable to noncontrolling interests                                                       (57)                                                (15)                            (164)                                                          (380)
                                                                                                            ---------                                           ---------                      -------------------- ---------                                           --------------------
                                                                                                                                                                                                                                                                         
Net income/(loss) attributable to UDR, Inc.                                                                    69,280                                             237,617                                             121,558                                                        292,718
Distributions to preferred stockholders - Series E (Convertible)                                                (924)                                               (930)                                             (3,708)                                                        (3,717)
                                                                                                            ---------                                           ---------                                           ---------                                           --------------------
                                                                                                                                                                                                                                                                         
Net income/(loss) attributable to common stockholders                                                        $ 68,356                                           $ 236,687                                           $ 117,850                                                      $ 289,001
                                                                                                            =========                                           =========                                           =========                                           ====================
                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                         
Income/(loss) per weighted average common share - basic:                                                        $0.26                                               $0.89                                               $0.44                                                          $1.09
Income/(loss) per weighted average common share - diluted:                                                      $0.25                                               $0.88                                               $0.44                                                          $1.08
                                                                                                                                                                                                                                                                         
Common distributions declared per share                                                                        $0.310                                              $0.295                                               $1.24                                                          $1.18
                                                                                                                                                                                                                                                                         
Weighted average number of common shares outstanding - basic                                                  267,270                                             266,498                                             267,024                                                        265,386
Weighted average number of common shares outstanding - diluted                                                269,221                                             271,551                                             268,830                                                        267,311
(1) See Attachment 16 for definitions and other terms.
(2) During the three months ended December 31, 2017, UDR
recorded a gain on sale of approximately $5.5 million in
connection with the sale of Katella Grand I, a West Coast
Development JV community in Anaheim, CA and a gain on
consolidation of approximately $14.8 million in connection with
the acquisition of Steele Creek. For the twelve months ended
December 31, 2017, UDR has recorded gains on sale or consolidation
of approximately $35.4 million.
(3) Due to the quarterly calculation of noncontrolling
interest, the sum of the quarterly amounts will not equal the
annual totals.
 
                                                                                                                                                                                                                                           
                                                                                                                                                                                                                     Attachment 2
                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                       UDR, Inc.
                                                                                                                                                                                                                 Funds From Operations
                                                                                                                                                                                                                    (Unaudited) (1)
                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                             Three Months Ended                                                                                                                                                                       Twelve Months Ended
                                                                                                                                                                                December 31,                                                                                                                                                                             December 31,
                                                                                                               -----------------------------------------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------------------------------------------------------
In thousands, except per share and unit amounts                                                 2017                                                  2016                                                   2017                                                  2016
-------------------------------------------------------------------- -------------------- -------------------- ---------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------- -------------------- ---------------------------------------------------------------------- -------------------- ---------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                     
Net income/(loss) attributable to common stockholders                                                                             $  68,356                                                                                   $  236,687                                                                                   $ 117,850                                                                                   $  289,001
                                                                                                                                                                                                                                                                                                                                                                                                     
  Real estate depreciation and amortization                                                                                         109,401                                                                                      102,537                                                                                     430,054                                                                                      419,615
  Noncontrolling interests                                                                                                            6,347                                                                                       22,129                                                                                      11,097                                                                                       27,662
  Real estate depreciation and amortization on unconsolidated joint                                                                  14,128                                                                                       13,055                                                                                      57,102                                                                                       47,832
  ventures
  Net gain on the sale of unconsolidated depreciable property                                                                       (20,850 )                                                                                    (36,385 )                                                                                   (35,363 )                                                                                    (47,848 )
  Net gain on the sale of depreciable real estate owned                                                          (41,272 )                                                                (200,466 )                                                                (41,824 )                                                                (209,166 )
                                                                                                               -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------
Funds from operations ("FFO") attributable to common stockholders                                                                 $ 136,110                                                                $  137,557                                                                $ 538,916                                                                $  527,096  
and unitholders, basic
                                                                                                               ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                     
  Distributions to preferred stockholders - Series E (Convertible)                                                                      924                                                                                          930                                                                                       3,708                                                                                        3,717
  (2)
                                                                                                                                                                                                                                                                                                                                            
                                                                                                               --------------------------------------------------                                          ---------------------------------------------------                                          --------------------------------------------------                                          ---------------------------------------------------
FFO attributable to common stockholders and unitholders, diluted                                                                  $ 137,034                                                                $  138,487                                                                $ 542,624                                                                $  530,813  
                                                                                                               ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                     
FFO per common share and unit, basic                                                                                              $    0.47                                                                $     0.47                                                                $    1.85                                                                $     1.81  
                                                                                                               ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================
FFO per common share and unit, diluted                                                                                            $    0.46                                                                $     0.47                                                                $    1.83                                                                $     1.80  
                                                                                                               ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                     
Weighted average number of common shares and OP/DownREIT Units                                                   291,911                                                291,471                                               291,845                                                290,516  
outstanding - basic
                                                                                                               -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------
Weighted average number of common shares, OP/DownREIT Units, and
common stock
  equivalents outstanding - diluted                                                                              296,873                                                296,524                                               296,672                                                295,469  
                                                                                                               -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                     
Impact of adjustments to FFO:
  Acquisition-related costs/(fees)                                                                                                $      27                                                                                   $      152                                                                                   $     371                                                                                   $      213
  Cost/(benefit) associated with debt extinguishment and other                                                                        3,378                                                                                            -                                                                                       9,212                                                                                        1,729
  Long-term incentive plan transition costs                                                                                               -                                                                                          274                                                                                           -                                                                                          898
  Net gain on the sale of non-depreciable real estate owned (3)                                                                           -                                                                                            -                                                                                      (1,580 )                                                                                     (1,685 )
  Legal claims, net of tax                                                                                                                -                                                                                            -                                                                                           -                                                                                         (480 )
  Net loss on sale of unconsolidated land                                                                                                 -                                                                                            -                                                                                           -                                                                                        1,016
  Severance costs and other restructuring expense                                                                                       624                                                                                          871                                                                                         624                                                                                          871
  Tax benefit associated with the conversion of certain TRS entities                                                                      -                                                                                       (2,436 )                                                                                         -                                                                                       (2,436 )
  into REITs (4)
  Casualty-related charges/(recoveries), net                                                                                            647                                                                                       (1,102 )                                                                                     4,504                                                                                          732
  Casualty-related charges/(recoveries) on unconsolidated joint                                                        -                                                   (251 )                                                                   (881 )                                                                  (3,752 )
  ventures, net
                                                                                                               -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                  $   4,676                                                                $   (2,492 )                                                                                 $  12,250                                                                $   (2,894 )
                                                                                                               -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                            
                                                                                                               --------------------------------------------------                                          ---------------------------------------------------                                          --------------------------------------------------                                          ---------------------------------------------------
FFO as Adjusted attributable to common stockholders and                                                                           $ 141,710                                                                $  135,995                                                                $ 554,874                                                                $  527,919  
unitholders, diluted
                                                                                                               ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                     
FFO as Adjusted per common share and unit, diluted                                                                                $    0.48                                                                $     0.46                                                                $    1.87                                                                $     1.79  
                                                                                                               ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                     
Recurring capital expenditures                                                                                   (15,912 )                                                                 (15,974 )                                                                (46,034 )                                                                 (47,257 )
                                                                                                               -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------
AFFO attributable to common stockholders and unitholders, diluted                                                                 $ 125,798                                                                $  120,021                                                                $ 508,840                                                                $  480,662  
                                                                                                               ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                     
AFFO per common share and unit, diluted                                                                                           $    0.42                                                                $     0.40                                                                $    1.72                                                                $     1.63  
                                                                                                               ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ======= ====================                                           ==================== ======== ====================
(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 stockholders 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 year ended December 31, 2017 and
2016 is $43.4 million and $210.9 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.
(4) During 4Q16, the Company recognized a one-time tax
benefit of $2.4 million related to the conversion of certain
taxable REIT subsidiary entities into REITs.
 
 
                                                                                                                            Attachment 3
                                                                                                                                  
                                                                                                                              UDR, Inc.
                                                                                                                     Consolidated Balance Sheets
                                                                                                                           (Unaudited) (1)
                                                                                                                                                                                                                
                                                                                                                                    December 31,                                                                                   December 31,
In thousands, except share and per share amounts                                                  2017                                                     2016
--------------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------------------- -------------------- -----------------------------------------------------
                                                                                                                                                                                                                
                                                                                                                                                                                                                
ASSETS
                                                                                                                                                                                                                
Real estate owned:
  Real estate held for investment                                                                                                  $  9,584,716                                                                                   $  9,271,847
    Less: accumulated depreciation                                                                                (3,326,312 )                                                                (2,923,072 )
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
  Real estate held for investment, net                                                                                                6,258,404                                                                                      6,348,775
  Real estate under development
    (net of accumulated depreciation of $3,854 and $0)                                                                                  588,636                                                                                        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                                                                              6,847,040                                                                                      6,692,128
                                                                                                                                                                                                                
  Cash and cash equivalents                                                                                                               2,038                                                                                          2,112
  Restricted cash                                                                                                                        19,792                                                                                         19,994
  Notes receivable, net                                                                                                                  19,469                                                                                         19,790
  Investment in and advances to unconsolidated joint ventures, net                                                                      720,830                                                                                        827,025
  Other assets                                                                                                       124,104                                                  118,535  
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total assets                                                                                                                       $  7,733,273                                                                $  7,679,584  
                                                                                                                ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                
LIABILITIES AND EQUITY
                                                                                                                                                                                                                
Liabilities:
  Secured debt                                                                                                                     $    803,269                                                                                   $  1,130,858
  Unsecured debt                                                                                                                      2,868,394                                                                                      2,270,620
  Real estate taxes payable                                                                                                              18,349                                                                                         17,388
  Accrued interest payable                                                                                                               33,432                                                                                         29,257
  Security deposits and prepaid rent                                                                                                     31,916                                                                                         34,238
  Distributions payable                                                                                                                  91,455                                                                                         86,936
  Accounts payable, accrued expenses, and other liabilities                                                          102,956                                                  103,835  
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total liabilities                                                                                                                     3,949,771                                                                                      3,673,132
                                                                                                                                                                                                                
Redeemable noncontrolling interests in the OP and DownREIT                                                                              948,138                                                                                        909,482
Partnership
                                                                                                                                                                                                                
Equity:
  Preferred stock, no par value; 50,000,000 shares authorized
    2,780,994 shares of 8.00% Series E Cumulative Convertible issued
      and outstanding (2,796,903 shares at December 31, 2016)                                                                            46,200                                                                                         46,457
    15,852,721 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
     267,822,069 shares issued and outstanding (267,259,469 shares at                                                                     2,678                                                                                          2,673
     December 31, 2016)
  Additional paid-in capital                                                                                                          4,651,205                                                                                      4,635,413
  Distributions in excess of net income                                                                                              (1,871,603 )                                                                                   (1,585,825 )
  Accumulated other comprehensive income/(loss), net                                                                  (2,681 )                                                                    (5,609 )
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total stockholders’ equity                                                                                                            2,825,800                                                                                      3,093,110
  Noncontrolling interests                                                                                             9,564                                                    3,860  
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total equity                                                                                                       2,835,364                                                3,096,970  
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total liabilities and equity                                                                                                       $  7,733,273                                                                $  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                                         December 31, 2017
------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------------------------------------------
                                                                                                                                                                                                                  
Net income/(loss)                                                                                                                                                                                                                   $    75,627
                                                                                                                                                                                                                  
Adjustments:
  Interest expense                                                                                                                                                                                                                       34,211
  Real estate depreciation and amortization                                                                                                                                                                                             109,401
  Real estate depreciation and amortization on unconsolidated joint                                                                                                                                                                      14,128
  ventures
  Other depreciation and amortization                                                                                                                                                                                                     1,648
  Income tax provision/(benefit), net                                                                                                                                                                                 (1,065 )
                                                                                                                                                                                                                 -------------------- --------- --------------------
EBITDA                                                                                                                                                                                                                              $   233,950  
                                                                                                                                                                                                                 -------------------- --------- --------------------
                                                                                                                                                                                                                  
  Net gain on the sale of depreciable real estate owned                                                                                                                                                                                 (41,272 )
  Net gain on the sale of unconsolidated depreciable property                                                                                                                                                                           (20,850 )
  Acquisition-related costs/(fees)                                                                                                                                                                                                           27
  Severance costs and other restructuring expense                                                                                                                                                                                           624
  Casualty-related charges/(recoveries), net                                                                                                                                                                             647  
                                                                                                                                                                                                                 -------------------- --------- --------------------
EBITDA - adjusted for non-recurring items                                                                                                                                                                                           $   173,126  
                                                                                                                                                                                                                 ==================== ========= ====================
                                                                                                                                                                                                                  
                                                                                                                                                                                                                 ----------------------------------------------------
Annualized EBITDA - adjusted for non-recurring items                                                                                                                                                                                $   692,504  
                                                                                                                                                                                                                 -------------------- --------- --------------------
                                                                                                                                                                                                                  
  Interest expense                                                                                                                                                                                                                       34,211
  Capitalized interest expense                                                                                                                                                                                         4,645  
                                                                                                                                                                                                                 -------------------- --------- --------------------
Total interest                                                                                                                                                                                                                      $    38,856
  Costs associated with debt extinguishment                                                                                                                                                                           (3,378 )
                                                                                                                                                                                                                 -------------------- --------- --------------------
Total interest - adjusted for non-recurring items                                                                                                                                                                                   $    35,478
                                                                                                                                                                                                                  
Preferred dividends                                                                                                                                                                                                                 $       924
                                                                                                                                                                                                                  
  Total debt                                                                                                                                                                                                                        $ 3,671,663
  Cash                                                                                                                                                                                                                 2,038  
                                                                                                                                                                                                                 -------------------- --------- --------------------
Net debt                                                                                                                                                                                                                            $ 3,669,625  
                                                                                                                                                                                                                 -------------------- --------- --------------------
                                                                                                                                                                                                                  
                                                                                                                                                                                                                  
Interest Coverage Ratio - adjusted for non-recurring items                                                                                                                                                                                                      4.9x
                                                                                                                                                                                                                 ====================================================
                                                                                                                                                                                                                  
Fixed Charge Coverage Ratio - adjusted for non-recurring items                                                                                                                                                                                                  4.8x
                                                                                                                                                                                                                 ====================================================
                                                                                                                                                                                                                  
Net Debt-to-EBITDA - adjusted for non-recurring items                                                                                                                                                                                                           5.3x
                                                                                                                                                                                                                 ====================================================
                                                                                                                                                                                                                  
                                                  
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                  
Debt Covenant Overview
                                                                                                                                                                                                                                                                                                                                               
Unsecured Line of Credit Covenants (2)                                                                          Required                         Actual                 Compliance
-------------------------------------------------------------------------------------    -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                               
Maximum Leverage Ratio                                                                                                                                                                              less-than or equal to60.0%                                                   33.8%(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%                                                     12.8%                                                           Yes
Minimum Unencumbered Pool Leverage Ratio                                                                                                                                                          greater-than or equal to150.0%                                                  351.9%                                                           Yes
                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                               
Senior Unsecured Note Covenants (3)                                                                             Required                         Actual                 Compliance
------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                               
Debt as a percentage of Total Assets                                                                                                                                                                less-than or equal to65.0%                                                   33.3%(3)                                                          Yes
Consolidated Income Available for Debt Service to Annual Service                                                                                                                                   greater-than or equal to1.5x                                                    5.1x                                                            Yes
Charge
Secured Debt as a percentage of Total Assets                                                                                                                                                        less-than or equal to40.0%                                                     7.3%                                                            Yes
Total Unencumbered Assets to Unsecured Debt                                                                                                                                                       greater-than or equal to150.0%                                                  300.3%                                                           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                                                   4Q 2017 NOI (1)                                                                                                                             Carrying Value                                                   Total Gross
Asset Summary                         Homes                   ($000s)                        % of NOI                         ($000s)              Carrying Value
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                               
Unencumbered assets                                                               31,893                                                      $ 146,306                                                                        82.3%                                                    $ 8,469,000                                                          83.2%
Encumbered assets                                                                  8,105                                                         31,370                                                                        17.7%                                                      1,708,206                                                          16.8%
                                                                    --------------------                                           --------------------                                           ----------------------------------                                           --------------------                                           --------------------
                                                                                  39,998                                                      $ 177,676                                                                       100.0%                                                   $ 10,177,206                                                         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
                          December 31, 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 2018 and first quarter of 2018 to forecasted FFO, FFO as
Adjusted and AFFO per share and unit:
 
                                                                                                             
                                                                                                                                                                         Full-Year 2018
                                                                                                                                            Low                                                                 High
                                                                                                                     ------------------------------------------------                     -------------------------------------------------
                                                                                                                                                                                           
Forecasted net income per diluted share                                                                                                 $  0.26                                                              $   0.30
Conversion from GAAP share count                                                                                                          (0.02 )                                                               (0.02 )
Depreciation                                                                                                                               1.64                                                                  1.64
Noncontrolling interests                                                                                                                   0.02                                                                  0.02
Preferred dividends                                                                                                     0.01                            0.01  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted FFO per diluted share and unit                                                                                               $  1.91                                           $   1.95  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Disposition-related FFO                                                                                                                       -                                                                     -
Cost associated with debt extinguishment                                                                                                      -                                                                     -
Casualty-related charges/(recoveries)                                                                                      -                               -  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted FFO as Adjusted per diluted share and unit                                                                                   $  1.91                                           $   1.95  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Recurring capital expenditures                                                                                         (0.15 )                                            (0.15 )
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted AFFO per diluted share and unit                                                                                              $  1.76                                           $   1.80  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                           
                                                                                                                                                                                           
                                                                                                                                                                                           
                                                                                                                                                                             1Q 2018
                                                                                                                                            Low                                                                 High
                                                                                                                     ------------------------------------------------                     -------------------------------------------------
                                                                                                                                                                                           
Forecasted net income per diluted share                                                                                                 $  0.06                                                              $   0.08
Conversion from GAAP share count                                                                                                          (0.01 )                                                               (0.01 )
Depreciation                                                                                                                               0.41                                                                  0.41
Noncontrolling interests                                                                                                                      -                                                                     -
Preferred dividends                                                                                                        -                               -  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted FFO per diluted share and unit                                                                                               $  0.46                                           $   0.48  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Disposition-related FFO                                                                                                                       -                                                                     -
Cost associated with debt extinguishment                                                                                                      -                                                                     -
Casualty-related charges/(recoveries)                                                                                      -                               -  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted FFO as Adjusted per diluted share and unit                                                                                   $  0.46                                           $   0.48  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Recurring capital expenditures                                                                                         (0.02 )                                            (0.02 )
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
Forecasted AFFO per diluted share and unit                                                                                              $  0.44                                           $   0.46  
                                                                                                                     -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                       

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180206006376r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180206006376/en/

SOURCE: UDR

UDR 
Chris Van Ens, 720-348-7762


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