UDR (UDR) Investor presentation summary

Operating model and portfolio strategy

• Operational excellence and innovation drive consistent revenue growth, margin advantage, and industry-leading resident retention, supported by a robust data-driven platform.

• Centralized operations and machine learning tools have increased efficiency, with 43 apartment homes managed per associate, 20% above peer average.

• High-quality, diversified portfolio across coastal and sunbelt markets mitigates concentration risk and supports stable growth.

• Enhanced customer experience initiatives since 2023 have improved resident retention by 920 bps to 62.7% and increased average tenure by 15%.

• Same-store NOI growth has outperformed peers by 60bps since 2023, with sustainable margin advantages.

Capital allocation and financial discipline

• Capital allocation is guided by proprietary analytics (Orion), focusing on risk-adjusted returns, operational upside, and CapEx needs.

• Asset recycling is accelerated using Orion, selling lower-growth assets and reinvesting in higher-growth opportunities.

• 2026 guidance includes up to $750M in dispositions, $130–$300M in acquisitions, and $300M in share repurchases completed through July.

• Exiting Debt and Preferred Equity investments to redeploy capital into higher-return opportunities with operational control.

• Maintains a strong investment-grade balance sheet with sector-low interest rates, robust liquidity, and prudent leverage metrics.

Shareholder returns and dividend policy

• Track record of durable earnings and cash flow growth, with a 50+ year history of dependable shareholder returns.

• 216 consecutive dividends paid, averaging 6% annual dividend growth since 2010, totaling ~$9B over 50+ years.

• Monthly dividend model aligns cash distributions with rental receipts, enhancing predictability for shareholders.