Financial Analysis

15. COMMITMENTS AND CONTINGENCIES Commitments The following summarizes the Companys commitments at December 31, 2025 ( dollars in thousands ): Number UDR's UDR's Remaining Properties Investment (a) Commitment Real estate commitments Wholly-owned under development 1 $ 72,885 $ 60,715 Other unconsolidated investments: Real estate technology and sustainability investments (b) - 134,006 34,994 Total $ 206,891 $ 95,709 (a) Represents UDRs investment as of December 31, 2025. (b) As of December 31, 2025, the investments were recorded in either Investment in and advances to unconsolidated joint ventures, net or Other Assets on the Consolidated Balance Sheets . Contingencies Litigation and Legal Matters The Company is subject to various legal proceedings and claims arising in the ordinary course of business. The Company cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The Company believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on our financial condition, results of operations or cash flows. We have been named as a defendant in a number of cases alleging antitrust violations by RealPage, Inc., a vendor providing revenue management software products, and various owners or managers of multifamily housing, which cases have been consolidated in the United States Court for the Middle District of Tennessee with the Second Amended Complaint filed Septembe …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

10. EMPLOYEE BENEFIT PLANS In May 2022, the stockholders of UDR approved an amendment and restatement to the LTIP. The LTIP authorizes the granting of awards which may take the form of options to purchase shares of common stock, stock appreciation rights, restricted stock, dividend equivalents, partnership interests in the Operating Partnership designated as LTIP Units, performance partnership interests in the Operating Partnership designated as Performance Units, other stock-based awards, and any other right or interest relating to common stock or cash incentive awards to Company directors, employees and outside trustees to promote the success of the Company by linking individuals compensation via grants of share based payment. LTIP Units and Performance Units are designed to qualify as profits interests in the Operating Partnership for federal income tax purposes, meaning that initially they are not economically equivalent in value to a share of our common stock, but over time can increase in value to one-for-one parity with common stock by operation of special tax rules applicable to profits interests. Until and unless such parity is reached, the value that an executive will realize for a given number of vested LTIP Units or Performance Units is less than the value of an equal number of shares of our common stock. As of December 31, 2025, 35.0 million shares were reserved on an unadjusted basis for issuance upon the grant or exercise of awards under the LTIP. As of Decembe …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

7. SECURED AND UNSECURED DEBT, NET The following is a summary of our secured and unsecured debt at December 31, 2025 and 2024 ( dollars in thousands): Principal Outstanding As of December 31, 2025 Weighted Weighted Average Average Number of December 31, December 31, Interest Years to Communities 2025 2024 Rate Maturity Encumbered Secured Debt: Fixed Rate Debt Mortgage notes payable (a) $ 937,475 $ 1,115,798 3.46 % 3.6 17 Deferred financing costs and other non-cash adjustments (b) (3,252) (3,429) Total fixed rate secured debt, net 934,223 1,112,369 3.51 % 3.6 17 Variable Rate Debt Tax-exempt secured notes payable (c) 27,000 27,000 3.11 % 6.2 1 Deferred financing costs (43) (38) Total variable rate secured debt, net 26,957 26,962 3.14 % 6.2 1 Total Secured Debt, net 961,180 1,139,331 3.50 % 3.7 18 Unsecured Debt: Variable Rate Debt Borrowings outstanding under unsecured credit facility due August 2028 (d) (l) % 2.7 Borrowings outstanding under unsecured commercial paper program due January 2026 (e) (l) 445,000 289,900 3.95 % 0.1 Borrowings outstanding under unsecured working capital credit facility due January 2027 (f) 26,381 9,361 4.44 % 1.0 Term Loan due January 2029 (d) (l) 175,000 175,000 4.70 % 3.1 Fixed Rate Debt Term Loan due January 2029 (d) (l) 175,000 175,000 4.04 % 3.1 2.95% Medium-Term Notes due September 2026 (l) 300,000 300,000 2.95 % 0.7 3.50% Medium-Term Notes due July 2027 (net of discounts of $106 and $176, respectively) (l) 299,894 299,824 3.50 % 1.5 3.50% Me …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

13. FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS Fair value is based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: Level 1 Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. Level 2 Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The estimated fair values of the Companys financial instruments either recorded or disclosed on a recurring basis as of December 31, 2025 and 2024 are summarized as follows (dollars in thousands) : Fair Value at December 31, 2025, Using Total Quoted Carrying Prices in Amount in Active Statement of Market …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

11. INCOME TAXES For 2025, 2024, and 2023, UDR believes that we have complied with the REIT requirements specified in the Code. As such, the REIT would generally not be subject to federal income taxes. For income tax purposes, distributions paid to common stockholders may consist of ordinary income, qualified dividends, capital gains, unrecaptured section 1250 gains, return of capital, or a combination thereof. Distributions that exceed our current and accumulated earnings and profits constitute a return of capital rather than taxable income and reduce the stockholders basis in their common shares. To the extent that a distribution exceeds both current and accumulated earnings and profits and the stockholders basis in the common shares, it generally will be treated as a gain from the sale or exchange of that stockholders common shares. Taxable distributions paid per common share were taxable as follows for the years ended December 31, 2025, 2024 and 2023 ( unaudited ): Year Ended December 31, 2025 2024 2023 Ordinary income $ 1.4244 $ 1.5935 $ 1.4384 Qualified ordinary income 0.0001 0.0001 0.0001 Long-term capital gain 0.1771 0.0458 0.1697 Unrecaptured section 1250 gain 0.1134 0.0556 0.0318 Total $ 1.7150 $ 1.6950 $ 1.6400 We have a TRS that is subject to federal and state income taxes. A TRS is a C-corporation which has not elected REIT status and as such is subject to United States federal and state income tax. The components of the provision for income taxes are as follows …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Disaggregation of Income Statement Expenses, which requires disclosure of additional information about specific cost and expense categories in the notes to the financial statements. The ASU may be applied either prospectively or retrospectively and is effective for the Company for the year ended December 31, 2027, and interim reporting periods commencing in 2028. The Company is currently evaluating the effect that the ASU will have on the consolidated financial statements and related disclosures . In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures , which requires disclosure enhancements and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. The ASU became effective for the Company for the year ended December 31, 2025. The Company adopted the ASU, however, the updated standard did not have a material impact on the consolidated financial statements and related disclosures . …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

16. REPORTABLE SEGMENTS GAAP guidance requires that segment disclosures present the measure(s) used by the Chief Operating Decision Maker (CODM) to decide how to allocate resources and for purposes of assessing such segments performance. UDRs CODM is comprised of our Chairman, President and Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer, who use several generally accepted industry financial measures to assess the performance of the business for our reportable operating segments. UDR owns and operates multifamily apartment communities that generate rental and other property related income through the leasing of apartment homes to a diverse base of tenants. The primary financial measures for UDRs apartment communities are rental income and net operating income (NOI). NOI is a useful metric for investors as it is a more meaningful representation of a communitys 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. Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. NOI is defined as rental income less direct property rental expenses. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing, which align with the segment-level information that is regularly provided to our CODM. Excluded from N …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2. SIGNIFICANT ACCOUNTING POLICIES Recent Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Disaggregation of Income Statement Expenses, which requires disclosure of additional information about specific cost and expense categories in the notes to the financial statements. The ASU may be applied either prospectively or retrospectively and is effective for the Company for the year ended December 31, 2027, and interim reporting periods commencing in 2028. The Company is currently evaluating the effect that the ASU will have on the consolidated financial statements and related disclosures . In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures , which requires disclosure enhancements and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. The ASU became effective for the Company for the year ended December 31, 2025. The Company adopted the ASU, however, the updated standard did not have a material impact on the consolidated financial statements and related disclosures . Real Estate Real estate assets held for investment are carried at historical cost and consist of land, land improvements, buildings and improvements, furniture, fixtures and equipment and other costs incurred during their development, acquisition and redevelopment. Expenditures for ordinary repair an …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

9. STOCKHOLDERS EQUITY UDR has an effective registration statement that allows the Company to sell an undetermined number of debt and equity securities as defined in the prospectus. The Companys authorized capital was 450.0 million shares of common stock and 50.0 million shares of preferred stock as of December 31, 2025. The following table presents the changes in the Companys issued and outstanding shares of common and preferred stock for the years ended December 31, 2025, 2024 and 2023: Common Preferred Stock Stock Series E Series F Balance at December 31, 2022 328,993 2,686 12,101 Issuance/(forfeiture) of common and restricted shares, net 174 Repurchase of common shares (623) Adjustment for conversion of noncontrolling interest of unitholders in the Operating Partnership 148 Adjustment for conversion of noncontrolling interest of unitholders in the DownREIT Partnership 323 Forfeiture of Series F shares (233) Balance at December 31, 2023 329,015 2,686 11,868 Issuance/(forfeiture) of common and restricted shares, net 48 Adjustment for conversion of noncontrolling interest of unitholders in the Operating Partnership 170 Adjustment for conversion of noncontrolling interest of unitholders in the DownREIT Partnership 1,533 Conversion of Series E Cumulative Convertible shares 93 (85) Forfeiture of Series F shares (1,444) Balance at December 31, 2024 330,859 2,601 10,424 Issuance/(forfeiture) of common and restricted shares, net 291 Repurchase of common shares (3,260) Adjustment f …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

13. COMMITMENTS AND CONTINGENCIES Commitments The following summarizes the Companys commitments at June 30, 2026 ( dollars in thousands ): Number UDR's UDR's Remaining Properties Investment (a) Commitment Real estate commitments Wholly-owned under development 2 $ 147,617 $ 167,283 Other unconsolidated investments: Real estate technology and sustainability investments (b) - 136,057 32,943 Total $ 283,674 $ 200,226 (a) Represents UDRs investment as of June 30, 2026. (b) As of June 30, 2026, the investments were recorded in either Investment in and advances to unconsolidated joint ventures, net or Other Assets on the Consolidated Balance Sheets . Contingencies Litigation and Legal Matters The Company is subject to various legal proceedings and claims arising in the ordinary course of business. The Company cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The Company believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on our financial condition, results of operations or cash flows. We have been named as a defendant in a number of cases alleging antitrust violations by RealPage, Inc., a vendor providing revenue management software products, and various owners or managers of multifamily housing, which cases have been consolidated in the United States Court for the Middle District of Tennessee with the Second Amended Complaint filed September 7, 2023 …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

7. SECURED AND UNSECURED DEBT, NET The following is a summary of our secured and unsecured debt at June 30, 2026 and December 31, 2025 ( dollars in thousands ): Principal Outstanding As of June 30, 2026 Weighted Weighted Average Average Number of June 30, December 31, Interest Years to Communities 2026 2025 Rate Maturity Encumbered Secured Debt: Fixed Rate Debt Mortgage notes payable (a) $ 909,154 $ 937,475 3.46 % 3.2 16 Deferred financing costs and other non-cash adjustments (b) (3,051) (3,252) Total fixed rate secured debt, net 906,103 934,223 3.51 % 3.2 16 Variable Rate Debt Tax-exempt secured notes payable (c) 27,000 27,000 2.56 % 5.7 1 Deferred financing costs (40) (43) Total variable rate secured debt, net 26,960 26,957 2.59 % 5.7 1 Total Secured Debt, net 933,063 961,180 3.49 % 3.3 17 Unsecured Debt: Variable Rate Debt Borrowings outstanding under unsecured credit facility due August 2028 (d) (l) 4.41 % 2.2 Borrowings outstanding under unsecured commercial paper program due July 2026 (e) (l) 480,000 445,000 4.01 % 0.1 Borrowings outstanding under unsecured working capital credit facility due January 2027 (f) 10,968 26,381 4.40 % 0.5 Term Loan due January 2029 (d) (l) 175,000 175,000 4.47 % 2.6 Fixed Rate Debt Term Loan due January 2029 (d) (l) 175,000 175,000 4.04 % 2.6 2.95% Medium-Term Notes due September 2026 (l) 300,000 300,000 2.95 % 0.2 3.50% Medium-Term Notes due July 2027 (net of discounts of $71 and $106, respectively) (l) 299,929 299,894 3.50 % 1.0 3.50% Medi …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

12. STOCK BASED COMPENSATION The Company recognized stock based compensation expense, inclusive of awards granted to our non-employee directors, net of capitalization, of $6.9 million and $8.8 million during the three months ended June 30, 2026 and 2025, respectively, and $16.4 million and $16.3 million during the six months ended June 30, 2026 and 2025, respectively, which are included in General and Administrative on the Consolidated Statements of Operations.

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10. FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS Fair value is based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: Level 1 Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. Level 2 Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The estimated fair values of the Companys financial instruments either recorded or disclosed on a recurring basis as of June 30, 2026 and December 31, 2025, are summarized as follows (dollars in thousands) : Fair Value at June 30, 2026, Using Total Quoted Carrying Prices in Amount in Active Statement of …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Disaggregation of Income Statement Expenses, which requires disclosure of additional information about specific cost and expense categories in the notes to the financial statements. The ASU may be applied either prospectively or retrospectively and is effective for the Company for the year ended December 31, 2027, and interim reporting periods commencing in 2028. The Company is currently evaluating the effect that the ASU will have on the consolidated financial statements and related disclosures . …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

14. REPORTABLE SEGMENTS GAAP guidance requires that segment disclosures present the measure(s) used by the Chief Operating Decision Maker (CODM) to decide how to allocate resources and for purposes of assessing such segments performance. UDRs CODM is comprised of our Chairman, President and Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer, who use several generally accepted industry financial measures to assess the performance of the business for our reportable operating segments. UDR owns and operates multifamily apartment communities that generate rental and other property related income through the leasing of apartment homes to a diverse base of tenants. The primary financial measures for UDRs apartment communities are rental income and net operating income (NOI). NOI is a useful metric for investors as it is a more meaningful representation of a communitys 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. Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. NOI is defined as rental income less direct property rental expenses. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing, which align with the segment-level information that is regularly provided to our CODM. Excluded from N …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2. SIGNIFICANT ACCOUNTING POLICIES Recent Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Disaggregation of Income Statement Expenses, which requires disclosure of additional information about specific cost and expense categories in the notes to the financial statements. The ASU may be applied either prospectively or retrospectively and is effective for the Company for the year ended December 31, 2027, and interim reporting periods commencing in 2028. The Company is currently evaluating the effect that the ASU will have on the consolidated financial statements and related disclosures . Principles of Consolidation The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Company first evaluates whether each entity is a variable interest entity (VIE). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. Real Estate Sales Gain Recognition For sale transactions resulting in a transfer of a controlling financial interest of a property, the Company generally …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing