Item 16. FORM 10-K SUMMARY

None.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

​	​	​
​	UDR, Inc.
​	​	​
Date: February 17, 2026	By:	/s/ Thomas W. Toomey
​	​	Thomas W. Toomey
​	​	Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer)

​

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below on February 17, 2026 by the following persons on behalf of the registrant and in the capacities indicated.

​	​	​
​	​	​
/s/ Thomas W. Toomey	​	/s/ Katherine A. Cattanach
​ Thomas W. Toomey	​	​ Katherine A. Cattanach
Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer)	​	Director
​	​	​
/s/ David D. Bragg	​	/s/ Richard B. Clark
​ David D. Bragg	​	​ Richard B. Clark
Senior Vice President - Chief Financial Officer	​	Director
(Principal Financial Officer)	​	​
​	​	​
/s/ Tracy L. Hofmeister	​	/s/ Ellen M. Goitia
Tracy L. Hofmeister	​	​ Ellen M. Goitia
Senior Vice President – Chief Accounting Officer	​	Director
(Principal Accounting Officer)	​	​
​	​	​
/s/ Jon A. Grove	​	/s/ Mary Ann King
​ Jon A. Grove	​	Mary Ann King
Lead Independent Director	​	Director
​	​	​
​	​	/s/ Robert A. McNamara
​	​	​ Robert A. McNamara
​	​	Director
​	​	​
​	​	/s/ Diane M. Morefield
​	​	Diane M. Morefield
​	​	Director
​	​	​
​	​	/s/ Kevin C. Nickelberry
​	​	Kevin C. Nickelberry
​	​	Director
​	​	​
​	​	/s/ Mark R. Patterson
​	​	Mark R. Patterson
​	​	Director
​	​	​
​	​	​
​	​	​
​	​	​
​	​	​

​

​

​

​

​

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE

​	​
​	PAGE
FINANCIAL STATEMENTS FILED AS PART OF THIS REPORT	​
​	​
Reports of Independent Registered Public Accounting Firm	F-2
​	​
Consolidated Balance Sheets at December 31, 2025 and 2024	F-5
​	​
Consolidated Statements of Operations for the years ended December 31, 2025, 2024, and 2023	F-6
​	​
Consolidated Statements of Comprehensive Income/(Loss) for the years ended December 31, 2025, 2024, and 2023	F-7
​	​
Consolidated Statements of Changes in Equity for the years ended December 31, 2025, 2024, and 2023	F-8
​	​
Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024, and 2023	F-9
​	​
Notes to Consolidated Financial Statements	F-11
​	​
SCHEDULES FILED AS PART OF THIS REPORT	​
​	​
Schedule III- Summary of Real Estate Owned	S-1

​

All other schedules are omitted since the required information is not present or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements and notes thereto.

​

​

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of UDR, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of UDR, Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income/(loss), changes in equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 17, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

	Indicators of Impairment of Real Estate Owned and Investment in Unconsolidated Joint Ventures
Description of the Matter	At December 31, 2025, the Company’s real estate owned, net and investment in and advances to unconsolidated joint ventures, net were approximately $9.1 billion and $886.5 million, respectively. As more fully described in Note 2 to the consolidated financial statements, the Company periodically evaluates these assets for indicators of impairment, and this includes, among other things, judgments based on factors such as operational performance, market conditions, the Company’s intent and ability to hold each asset, as well as any significant cost overruns on development properties. During 2025, the Company did not recognize an impairment related to real estate owned, net or any other than temporary impairments related to its investment in unconsolidated joint ventures.

​

F - 2

Auditing the Company’s evaluation for indicators of impairment was complex due to the subjectivity involved in the identification of events or changes in circumstances that may indicate an impairment of its real estate owned or that the value of its investment in and advances to unconsolidated joint ventures may be other than temporarily impaired. Differences or changes in these judgments could have a material impact on the Company’s analysis.

How We Addressed the Matter in Our Audit

We tested the Company’s internal controls over the asset impairment evaluation process. This included testing controls over management’s determination and review of the considerations used in the impairment indicator analysis. Our procedures with regard to the Company’s evaluation for indicators of impairment included, among others, testing the completeness and accuracy of management’s impairment analysis and evaluating management’s judgments determining whether indicators of impairment were present. For example, we performed inquiries of management, considered historical operating results and current market conditions, performed an independent assessment using both internally and externally available information, and read the minutes of the meetings of the Board of Directors.

​

/s/ Ernst & Young LLP

We have served as the Company's auditor since at least 1984, but we are unable to determine the specific year.

Denver, Colorado

February 17, 2026

​

F - 3

Report of Independent Registered Public Accounting Firm

​

To the Stockholders and the Board of Directors of UDR, Inc.

Opinion on Internal Control Over Financial Reporting

We have audited UDR, Inc.’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, UDR, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income/(loss), changes in equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) and our report dated February 17, 2026 expressed an unqualified opinion thereon.

​

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Denver, Colorado

February 17, 2026

F - 4

UDR, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

​	​	​	​	​	​	​
​	​	December 31,		​	December 31,
​	​ ​ ​	2025		​ ​ ​	2024
ASSETS	​	​	​	​	​	​
Real estate owned:		​	​		​	​
Real estate held for investment	​	$	16,415,000	​	$	15,994,794
Less: accumulated depreciation	​		(7,374,546)	​		(6,836,920)
Real estate held for investment, net	​		9,040,454	​		9,157,874
Real estate under development (net of accumulated depreciation of $0 and $0, respectively)	​		72,885	​		—
Real estate held for disposition (net of accumulated depreciation of $0 and $64,106, respectively)	​		—	​		154,463
Total real estate owned, net of accumulated depreciation	​		9,113,339	​		9,312,337
​	​	​	​	​	​	​
Cash and cash equivalents	​		1,222	​		1,326
Restricted cash	​		35,710	​		34,101
Notes receivable, net	​		149,979	​		247,849
Investment in and advances to unconsolidated joint ventures, net	​		886,492	​		917,483
Operating lease right-of-use assets	​	​	187,624	​	​	186,997
Other assets	​		231,308	​		197,493
Total assets	​	$	10,605,674	​	$	10,897,586
​	​	​	​	​	​	​
LIABILITIES AND EQUITY	​		​	​		​
Liabilities:	​		​	​		​
Secured debt, net	​	$	961,180	​	$	1,139,331
Unsecured debt, net	​		4,860,189	​		4,687,634
Operating lease liabilities	​	​	182,963	​	​	182,275
Real estate taxes payable	​		45,640	​		46,403
Accrued interest payable	​		51,698	​		52,631
Security deposits and prepaid rent	​		61,205	​		61,592
Distributions payable	​		151,934	​		151,720
Accounts payable, accrued expenses, and other liabilities	​		142,102	​		115,105
Total liabilities	​		6,456,911	​		6,436,691
​	​	​	​	​	​	​
Commitments and contingencies (Note 15)	​		​	​		​
​	​	​	​	​	​	​
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership	​		859,966	​		1,017,355
​	​	​	​	​	​	​
Equity:	​		​	​		​
Preferred stock, no par value; 50,000,000 shares authorized at December 31, 2025 and December 31, 2024:	​		​	​		​
8.00% Series E Cumulative Convertible; 2,600,678 and 2,600,678 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively	​		43,192	​		43,192
Series F; 10,105,845 and 10,424,485 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively	​		1	​		1
Common stock, $0.01 par value; 450,000,000 shares authorized at December 31, 2025 and December 31, 2024:	​		​	​		​
328,273,044 and 330,858,719 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively	​		3,283	​		3,309
Additional paid-in capital	​		7,480,594	​		7,572,480
Distributions in excess of net income	​		(4,240,268)	​		(4,179,415)
Accumulated other comprehensive income/(loss), net	​		1,660	​		3,638
Total stockholders’ equity	​		3,288,462	​		3,443,205
Noncontrolling interests	​		335	​		335
Total equity	​		3,288,797	​		3,443,540
Total liabilities and equity	​	$	10,605,674	​	$	10,897,586

​

See accompanying notes to consolidated financial statements.

​

F - 5

UDR, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​	​ ​ ​	2025		​	2024		​	2023
REVENUES:	​	​	​	​	​	​	​	​	​
Rental income	​	$	1,700,956	​	$	1,663,525	​	$	1,620,658
Joint venture management and other fees	​		11,361	​		8,317	​		6,843
Total revenues	​		1,712,317	​		1,671,842	​		1,627,501
OPERATING EXPENSES:	​		​	​		​	​		​
Property operating and maintenance	​		304,971	​		292,572	​		273,736
Real estate taxes and insurance	​		233,817	​		232,130	​		232,152
Property management	​		55,281	​		54,065	​		52,671
Other operating expenses	​		30,734	​		30,416	​		20,222
Real estate depreciation and amortization	​		654,121	​		676,068	​		676,419
General and administrative	​		85,104	​		84,305	​		69,929
Casualty-related charges/(recoveries), net	​		11,682	​		15,179	​		3,138
Other depreciation and amortization	​		25,914	​		19,405	​		15,419
Total operating expenses	​		1,401,624	​		1,404,140	​		1,343,686
Gain/(loss) on sale of real estate owned	​	​	242,913	​	​	16,867	​	​	351,193
Operating income	​		553,606	​		284,569	​		635,008
​	​	​	​	​	​	​	​	​	​
Income/(loss) from unconsolidated entities	​		28,388	​		20,235	​		4,693
Interest expense	​	​	(196,619)	​	​	(195,712)	​	​	(180,866)
Interest income and other income/(expense), net	​		19,175	​		(12,336)	​		17,759
Income/(loss) before income taxes	​		404,550	​		96,756	​		476,594
Tax (provision)/benefit, net	​		(835)	​		(879)	​		(2,106)
Net income/(loss)	​		403,715	​		95,877	​		474,488
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership	​		(25,965)	​		(6,246)	​		(30,104)
Net (income)/loss attributable to noncontrolling interests	​		(46)	​		(46)	​		(31)
Net income/(loss) attributable to UDR, Inc.	​		377,704	​		89,585	​	​	444,353
Distributions to preferred stockholders — Series E (Convertible)	​		(4,839)	​		(4,835)	​		(4,848)
Net income/(loss) attributable to common stockholders	​	$	372,865	​	$	84,750	​	$	439,505
​	​	​	​	​	​	​	​	​	​
Income/(loss) per weighted average common share:	​		​	​		​	​		​
Basic	​	$	1.13	​	$	0.26	​	$	1.34
Diluted	​	$	1.13	​	$	0.26	​	$	1.34
​	​	​	​	​	​	​	​	​	​
Weighted average number of common shares outstanding:	​		​	​		​	​		​
Basic	​		330,322	​		329,290	​		328,765
Diluted	​		331,053	​		330,116	​		329,104

​

See accompanying notes to consolidated financial statements.

​

F - 6

UDR, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(In thousands)

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
Net income/(loss)	​	$	403,715	​	$	95,877	​	$	474,488
Other comprehensive income/(loss), including portion attributable to noncontrolling interests:	​		​	​		​	​		​
Other comprehensive income/(loss) - derivative instruments:	​		​	​		​	​		​
Unrealized holding gain/(loss)	​		715	​		5,988	​		3,872
(Gain)/loss reclassified into earnings from other comprehensive income/(loss)	​		(2,846)	​		(7,333)	​		(7,533)
Other comprehensive income/(loss), including portion attributable to noncontrolling interests	​		(2,131)	​		(1,345)	​		(3,661)
Comprehensive income/(loss)	​		401,584	​		94,532	​		470,827
Comprehensive (income)/loss attributable to noncontrolling interests	​		(25,858)	​		(6,223)	​		(29,904)
Comprehensive income/(loss) attributable to UDR, Inc.	​	$	375,726	​	$	88,309	​	$	440,923

​

See accompanying notes to consolidated financial statements.

​

​

F - 7

UDR, INC.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(In thousands, except per share data)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	Distributions		​ ​ ​	Accumulated Other Comprehensive		​ ​ ​	​	​	​ ​ ​	​	​
​	​	Preferred		​	Common		​	Paid-in		​	in Excess of		​	Income/(Loss),		​	Noncontrolling		​	​	​
​	​	Stock		​	Stock		​	Capital		​	Net Income		​	net		​	Interests		​	Total
Balance at December 31, 2022	​	$	44,615	​	$	3,290	​	$	7,493,423	​	$	(3,451,587)	​	$	8,344	​	$	210	​	$	4,098,295
Net income/(loss) attributable to UDR, Inc.	​		—	​		—	​		—	​		444,353	​		—	​		—	​		444,353
Other comprehensive income/(loss)	​		—	​		—	​		—	​		—	​		(3,430)	​		—	​		(3,430)
Issuance/(forfeiture) of common and restricted shares, net	​		—	​		2	​		6,558	​		—	​		—	​		—	​		6,560
Issuance of common shares through public offering, net	​	​	—	​		—	​		(551)	​		—	​		—	​		—	​		(551)
Adjustment for conversion of noncontrolling interest of unitholders in the Operating Partnership and DownREIT Partnership	​		—	​		4	​		18,790	​		—	​		—	​		—	​		18,794
Common stock distributions declared ($1.68 per share)	​		—	​		—	​		—	​		(553,021)	​		—	​		—	​		(553,021)
Repurchase of common shares	​	​	—	​	​	(6)	​	​	(25,003)	​	​	—	​	​	—	​	​	—	​	​	(25,009)
Preferred stock distributions declared-Series E ($1.8192 per share)	​		—	​		—	​		—	​		(4,848)	​		—	​		—	​		(4,848)
Adjustment to reflect redemption value of redeemable noncontrolling interests	​		—	​		—	​		—	​		10,211	​		—	​		—	​		10,211
Balance at December 31, 2023	​	$	44,615	​	$	3,290	​	$	7,493,217	​	$	(3,554,892)	​	$	4,914	​	$	210	​	$	3,991,354
Net income/(loss) attributable to UDR, Inc.	​		—	​		—	​		—	​		89,585	​		—	​		—	​		89,585
Other comprehensive income/(loss)	​		—	​		—	​		—	​		—	​		(1,276)	​		—	​		(1,276)
Issuance/(forfeiture) of common and restricted shares, net	​		—	​		1	​		5,119	​		—	​		—	​		—	​		5,120
Issuance of common shares through public offering, net	​	​	—	​		—	​		(456)	​		—	​		—	​		—	​		(456)
Conversion of Series E Cumulative Convertible shares	​	​	(1,422)	​	​	1	​	​	1,421	​	​	—	​	​	—	​	​	—	​	​	—
Adjustment for conversion of noncontrolling interest of unitholders in the Operating Partnership and DownREIT Partnership	​		—	​		17	​		73,179	​		—	​		—	​		—	​		73,196
Contribution of noncontrolling interests in consolidated real estate	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	125	​	​	125
Common stock distributions declared ($1.70 per share)	​		—	​		—	​		—	​		(560,911)	​		—	​		—	​		(560,911)
Preferred stock distributions declared-Series E ($1.8408 per share)	​		—	​		—	​		—	​		(4,835)	​		—	​		—	​		(4,835)
Adjustment to reflect redemption value of redeemable noncontrolling interests	​		—	​		—	​		—	​		(148,362)	​		—	​		—	​		(148,362)
Balance at December 31, 2024	​	$	43,193	​	$	3,309	​	$	7,572,480	​	$	(4,179,415)	​	$	3,638	​	$	335	​	$	3,443,540
Net income/(loss) attributable to UDR, Inc.	​	​	—	​	​	—	​	​	—	​	​	377,704	​	​	—	​	​	—	​	​	377,704
Other comprehensive income/(loss)	​	​	—	​	​	—	​	​	—	​	​	—	​	​	(1,978)	​	​	—	​	​	(1,978)
Issuance/(forfeiture) of common and restricted shares, net	​	​	—	​	​	2	​	​	10,556	​	​	—	​	​	—	​	​	—	​	​	10,558
Issuance of common shares through public offering, net	​	​	—	​	​	—	​	​	(463)	​	​	—	​	​	—	​	​	—	​	​	(463)
Adjustment for conversion of noncontrolling interest of unitholders in the Operating Partnership and DownREIT Partnership	​	​	—	​	​	4	​	​	15,800	​	​	—	​	​	—	​	​	—	​	​	15,804
Common stock distributions declared ($1.72 per share)	​	​	—	​	​	—	​	​	—	​	​	(568,406)	​	​	—	​	​	—	​	​	(568,406)
Repurchase of common shares	​	​	—	​	​	(32)	​	​	(117,779)	​	​	—	​	​	—	​	​	—	​	​	(117,811)
Preferred stock distributions declared-Series E ($1.86 per share)	​	​	—	​	​	—	​	​	—	​	​	(4,839)	​	​	—	​	​	—	​	​	(4,839)
Adjustment to reflect redemption value of redeemable noncontrolling interests	​	​	—	​	​	—	​	​	—	​	​	134,688	​	​	—	​	​	—	​	​	134,688
Balance at December 31, 2025	​	$	43,193	​	$	3,283	​	$	7,480,594	​	$	(4,240,268)	​	$	1,660	​	$	335	​	$	3,288,797

​

See accompanying notes to consolidated financial statements.

​

​

​

F - 8

UDR, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, except for share data)

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
Operating Activities	​	​	​		​	​		​	​
Net income/(loss)	​	$	403,715	​	$	95,877	​	$	474,488
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:	​		​	​		​	​		​
Depreciation and amortization	​		680,035	​		695,473	​		691,838
(Gain)/loss on sale of real estate owned	​		(242,913)	​		(16,867)	​		(351,193)
(Income)/loss from unconsolidated entities	​		(28,388)	​		(20,235)	​		(4,693)
Return on investment in unconsolidated joint ventures and partnerships	​		53,918	​		61,315	​		15,944
Amortization of share-based compensation	​		26,484	​		32,625	​		32,896
Provision/(recovery) for credit losses	​	​	(213)	​	​	37,456	​	​	702
Other	​		32,509	​		27,107	​		9,089
Changes in operating assets and liabilities:	​		​	​		​	​		​
(Increase)/decrease in operating assets	​		(8,372)	​		(31,144)	​		(33,579)
Increase/(decrease) in operating liabilities	​		(13,888)	​		(4,759)	​		(2,828)
Net cash provided by/(used in) operating activities	​		902,887	​		876,848	​		832,664
​	​	​	​	​	​	​	​	​	​
Investing Activities	​		​	​		​	​		​
Acquisition of real estate assets	​		(147,171)	​		—	​		(17,848)
Proceeds from sales of real estate investments, net	​		373,545	​		98,650	​		325,767
Development of real estate assets	​		(43,695)	​		(67,532)	​		(155,875)
Capital expenditures and other major improvements — real estate assets	​		(252,857)	​		(249,886)	​		(295,440)
Capital expenditures — non-real estate assets	​		(36,084)	​		(21,801)	​		(16,907)
Investment in unconsolidated joint ventures and partnerships	​		(83,031)	​		(50,335)	​		(71,395)
Distributions received from unconsolidated joint ventures and partnerships	​		150,303	​		41,097	​		14,399
Proceeds from sale of equity securities	​	​	—	​	​	4,624	​	​	14,471
Purchase deposits on pending acquisitions	​	​	—	​	​	1,000	​	​	(1,000)
Repayment/(issuance) of notes receivable, net	​		(112,000)	​		(32,168)	​		(85,310)
Net cash provided by/(used in) investing activities	​		(150,990)	​		(276,351)	​		(289,138)
​	​	​	​	​	​	​	​	​	​
Financing Activities	​		​	​		​	​		​
Payments on secured debt	​		(178,323)	​		(137,971)	​		(1,244)
Payments on unsecured debt	​	​	—	​	​	(15,644)	​	​	—
Net proceeds from the issuance of unsecured debt	​		—	​		296,929	​		—
Net proceeds/(repayment) of commercial paper	​		155,100	​		(118,175)	​		108,075
Net proceeds/(repayment) of revolving bank debt	​		17,020	​		4,768	​		(23,425)
Repurchase of common shares	​	​	(117,811)	​	​	—	​	​	(25,009)
Distributions paid to redeemable noncontrolling interests	​		(39,702)	​		(42,798)	​		(35,582)
Distributions paid to preferred stockholders	​		(4,830)	​		(4,851)	​		(4,770)
Distributions paid to common stockholders	​		(567,864)	​		(558,482)	​		(539,852)
Other	​		(13,982)	​		(23,712)	​		(17,047)
Net cash provided by/(used in) financing activities	​		(750,392)	​		(599,936)	​		(538,854)
Net increase/(decrease) in cash, cash equivalents, and restricted cash	​		1,505	​		561	​		4,672
Cash, cash equivalents, and restricted cash, beginning of year	​		35,427	​		34,866	​		30,194
Cash, cash equivalents, and restricted cash, end of period	​	$	36,932	​	$	35,427	​	$	34,866
​	​	​	​	​	​	​	​	​	​
Supplemental Information:	​		​	​		​	​		​
Interest paid during the period, net of amounts capitalized	​	$	190,511	​	$	192,101	​	$	184,201
Cash paid for amounts included in the measurement of lease liabilities:	​	​	​	​	​	​	​	​	​
Operating cash flows from operating leases	​	​	12,608	​	​	12,502	​	​	12,502
Cash paid/(refunds received) for income taxes	​		1,373	​		1,044	​		1,911
Non-cash transactions:	​		​	​		​	​		​
Secured debt assumed upon acquisition of real estate assets	​	$	—	​	$	—	​	$	191,737
OP Units issued for real estate, net	​	​	—	​	​	—	​	​	141,359
Notes receivable settled in exchange for real estate owned	​	​	180,700	​	​	—	​	​	—
Conversion of note receivable to equity securities	​	​	42,807	​	​	—	​	​	—
Development costs and capital expenditures incurred, but not yet paid	​	​	28,924	​	​	15,188	​		39,080
Conversion of Operating Partnership and DownREIT Partnership noncontrolling interests to common stock (382,991 shares; 1,703,570 shares; and 470,800 shares)	​		15,804	​		73,196	​		18,794
Distribution of equity securities from unconsolidated real estate technology investments	​	​	—	​	​	—	​	​	7,749
Right-of-use assets obtained in exchange for operating lease liabilities remeasurement	​	​	4,422	​	​	—	​	​	—
Contribution of operating properties to unconsolidated joint venture	​	​	60,355	​	​	—	​	​	258,056

​

F - 9

UDR, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS – (Continued)

(In thousands, except for share data)

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
Transfer of preferred equity investment to note receivable	​	​	—	​	​	—	​	​	73,453
Dividends declared, but not yet paid	​		151,934	​		151,720	​		149,600
​	​	​	​	​	​	​	​	​	​
The following reconciles cash, cash equivalents, and restricted cash to amounts as shown above:	​	​	​	​	​	​	​	​	​
Cash, cash equivalents, and restricted cash, beginning of year:	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	1,326	​	$	2,922	​	$	1,193
Restricted cash	​	​	34,101	​	​	31,944	​	​	29,001
Total cash, cash equivalents, and restricted cash as shown above	​	$	35,427	​	$	34,866	​	$	30,194
Cash, cash equivalents, and restricted cash, end of period:	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	1,222	​	$	1,326	​	$	2,922
Restricted cash	​	​	35,710	​	​	34,101	​	​	31,944
Total cash, cash equivalents, and restricted cash as shown above	​	$	36,932	​	$	35,427	​	$	34,866

See accompanying notes to consolidated financial statements.

​

F - 10

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2025

1. CONSOLIDATION AND BASIS OF PRESENTATION

Organization and Formation

UDR, Inc. (“UDR,” the “Company,” “we,” or “our”) is a self-administered real estate investment trust, or REIT, that owns, operates, acquires, renovates, develops, redevelops, and manages apartment communities in targeted markets located in the United States. At December 31, 2025, our consolidated apartment portfolio consisted of 165 communities with a total of 55,240 apartment homes located in 21 markets. In addition, the Company has an ownership interest in 12,167 completed or to-be-completed apartment homes through unconsolidated joint ventures or partnerships, including 6,766 apartment homes owned by entities in which we hold preferred equity investments.

Basis of Presentation

The accompanying consolidated financial statements of UDR include its wholly-owned and/or controlled subsidiaries (see Note 4, Variable Interest Entities and Note 5, Joint Ventures and Partnerships, for further discussion). All significant intercompany accounts and transactions have been eliminated in consolidation.

The accompanying consolidated financial statements include the accounts of UDR and its subsidiaries, including United Dominion Realty, L.P. (the “Operating Partnership” or the “OP”) and UDR Lighthouse DownREIT L.P. (the “DownREIT Partnership”). As of December 31, 2025 and 2024, there were 190.1 million and 189.8 million units, respectively, in the Operating Partnership (“OP Units”) outstanding, of which 176.6 million, or 92.9% and 176.6 million, or 93.0%, respectively, were owned by UDR and 13.5 million, or 7.1% and 13.2 million, or 7.0%, respectively, were owned by outside limited partners. As of December 31, 2025 and 2024, there were 32.4 million units in the DownREIT Partnership (“DownREIT Units”) outstanding, of which 23.3 million, or 71.9% and 23.0 million, or 71.0%, respectively, were owned by UDR and its subsidiaries and 9.1 million, or 28.1% and 9.4 million, or 29.0%, respectively, were owned by outside limited partners. The consolidated financial statements of UDR include the noncontrolling interests of the unitholders in the Operating Partnership and DownREIT Partnership.

The Company evaluated subsequent events through the date its financial statements were issued. No significant recognized or non-recognized subsequent events were noted other than those in Note 5, Joint Ventures and Partnerships.

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.

​

F - 11

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

Expenditures for ordinary repair and maintenance costs are charged to expense as incurred. Expenditures for improvements, renovations, and replacements related to the acquisition and/or improvement of real estate assets are capitalized and depreciated over their estimated useful lives if the expenditures qualify as a betterment or the life of the related asset will be substantially extended beyond the original life expectancy.

UDR purchases real estate investment properties and records the tangible and identifiable intangible assets and liabilities acquired based on their estimated fair value. The primary, although not only, identifiable intangible asset associated with our portfolio is the value of existing lease agreements. When recording the acquisition of a community, we first assign fair value to the estimated intangible value of the existing lease agreements and then to the estimated value of the land, building and fixtures assuming the community is vacant. The Company estimates the intangible value of the lease agreements by determining the lost revenue associated with a hypothetical lease-up. Depreciation on the building is based on the expected useful life of the asset and the in-place leases are amortized over their remaining average contractual life. Property acquisition costs are capitalized as incurred if the acquisition does not meet the definition of a business.

Quarterly or when changes in circumstances warrant, UDR will assess our real estate properties for indicators of impairment. The judgments regarding the existence of impairment indicators are based on certain factors. Such factors include, among other things, operational performance, market conditions, the Company’s intent and ability to hold the related asset, as well as any significant cost overruns on development properties.

​

If a real estate property has indicators of impairment, we assess whether the long-lived asset’s carrying value exceeds the community’s undiscounted future cash flows, which is representative of projected net operating income (“NOI”) plus the residual value of the community. Our future cash flow estimates are based upon historical results adjusted to reflect our best estimate of future market and operating conditions and our estimated holding periods. If such indicators of impairment are present and the carrying value exceeds the undiscounted cash flows of the community, an impairment loss is recognized equal to the excess of the carrying amount of the asset over its estimated fair value. Our estimates of fair value represent our best estimate based primarily upon unobservable inputs related to rental rates, operating costs, growth rates, discount rates, capitalization rates, industry trends and reference to market rates and transactions.

For long-lived assets to be disposed of, impairment losses are recognized when the fair value of the asset less estimated cost to sell is less than the carrying value of the asset. Properties classified as real estate held for disposition generally represent properties that are actively marketed or contracted for sale with the closing expected to occur within the next twelve months. Real estate held for disposition is carried at the lower of cost, net of accumulated depreciation, or fair value, less the cost to sell, determined on an asset-by-asset basis. Expenditures for ordinary repair and maintenance costs on held for disposition properties are charged to expense as incurred. Expenditures for improvements, renovations, and replacements related to held for disposition properties are capitalized at cost. Depreciation is not recorded on real estate held for disposition.

For the years ended December 31, 2025, 2024 and 2023, we did not record any impairments on our real estate properties.

Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets which are 30 to 55 years for buildings, 10 to 35 years for major improvements, and 3 to 10 years for furniture, fixtures, equipment, and other assets.

Predevelopment, development, and redevelopment projects and related costs are capitalized and reported on the Consolidated Balance Sheets as Total real estate owned, net of accumulated depreciation. The Company capitalizes costs directly related to the predevelopment, development, and redevelopment of a capital project, which include, but are not limited to, interest, real estate taxes, insurance, and allocated development and redevelopment overhead related to support costs for personnel working on the capital projects. We use our professional judgment in determining whether such costs meet the criteria for capitalization or must be expensed as incurred. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress and such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. These costs, excluding the direct costs of development and redevelopment and capitalized interest, for the years ended December 31, 2025, 2024, and 2023 were $6.8 million, $15.1 million and $13.1 million, respectively. During the years ended December 31, 2025,

F - 12

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

2024, and 2023, total interest capitalized was $8.6 million, $9.3 million and $10.1 million, respectively. As each home in a capital project is completed and becomes available for lease-up, the Company ceases capitalization on the related portion and depreciation commences over the estimated useful life.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions and short-term, highly liquid investments. We consider all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. The majority of the Company’s cash and cash equivalents are held at major commercial banks.

Restricted Cash

Restricted cash primarily consists of escrow deposits held by lenders for real estate taxes, insurance and replacement reserves, and security deposits.

Real Estate Sales Gain Recognition

For sale transactions resulting in a transfer of a controlling financial interest of a property, the Company generally derecognizes the related assets and liabilities from its Consolidated Balance Sheets and records the gain or loss in the period in which the transfer of control occurs. If control of the property has not been transferred by the Company, the criteria for derecognition are not met and the Company will continue to recognize the related assets and liabilities on its Consolidated Balance Sheets.

Sale transactions to entities in which the Company sells a controlling financial interest in a property but retains a noncontrolling interest are accounted for as partial sales. Partial sales resulting in a change in control are accounted for at fair value and a full gain or loss is recognized. Therefore, the Company will record a gain or loss on the partial interest sold, and the initial measurement of our retained interest will be accounted for at fair value.

Sales of real estate to joint ventures or other noncontrolled investees are also accounted for at fair value and the Company will record a full gain or loss in the period the property is contributed.

​

To the extent that the Company acquires a controlling financial interest in a property that it previously accounted for as an equity method investment, the Company will not remeasure its previously held interest if the acquisition is treated as an asset acquisition. The Company will include the carrying amount of its previously held equity method interest along with the consideration paid and transaction costs incurred in determining the amounts to allocate to the related assets and liabilities acquired on its Consolidated Balance Sheets. When treated as an asset acquisition, the Company will not recognize a gain or loss on consolidation of a property.

​

Allowance for Credit Losses

The Company accounts for allowance for credit losses under the current expected credit loss (“CECL”) impairment model for its financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and presents the net amount of the financial instrument expected to be collected. The CECL impairment model excludes operating lease receivables. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, that considers forecasts of future economic conditions in addition to information about past events and current conditions. Based on this model, we analyze the following criteria, as applicable in developing allowances for credit losses: historical loss information, the borrower’s ability to make scheduled payments, the remaining time to maturity, the value of underlying collateral, projected future performance of the borrower and macroeconomic trends.

​

The Company measures credit losses of financial assets on a collective (pool) basis when similar risk characteristics exist. If the Company determines that a financial asset does not share risk characteristics with the Company’s other financial assets, the Company evaluates the financial asset for expected credit losses on an individual basis. Allowance for credit losses are recorded as a direct reduction from an asset’s amortized cost basis. Credit losses and recoveries are recorded in Interest income and other income/(expense), net on the Consolidated Statements of

F - 13

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

Operations. Recoveries of financial assets previously written off are recorded when received. For the years ended December 31, 2025, 2024 and 2023, the Company recorded net credit recoveries/(losses) of $0.2 million, $(37.5) million and $(0.7) million, respectively, on the Consolidated Statements of Operations.

​

The Company has made the optional election provided by the standard not to measure allowance for credit losses for accrued interest receivables as the Company writes off any uncollectible accrued interest receivables in a timely manner. The Company periodically evaluates the collectability of its accrued interest receivables. A write-off is recorded when the Company concludes that all or a portion of its accrued interest receivable balance is no longer collectible.

​

Notes Receivable

Notes receivable relate to financing arrangements which are typically secured by assets of the borrower that may include real estate assets. Certain of the loans we extend may include characteristics such as options to purchase the project within a specific time window following expected project completion. These characteristics can cause the loans to fall under the definition of a variable interest entity (“VIE”), and thus trigger consolidation consideration. We consider the facts and circumstances pertinent to each loan, including the relative amount of financing we are contributing to the overall project cost, decision making rights or control we hold, and our rights to expected residual gains or our obligations to absorb expected residual losses from the project. If we are deemed to be the primary beneficiary of a VIE due to holding a controlling financial interest, the majority of decision making control, or by other means, consolidation of the VIE would be required. The Company has concluded that it is not the primary beneficiary of the borrowing entities of the existing loans.

Additionally, we analyze each loan arrangement that involves real estate development to consider whether the loan qualifies for accounting as a loan or as an investment in a real estate development project. The Company has evaluated its real estate loans, where appropriate, for accounting treatment as loans versus real estate development projects, as required by Accounting Standards Codification (“ASC”) 310-10. For each loan, the Company has concluded that the characteristics and the facts and circumstances indicate that loan accounting treatment is appropriate.

The following table summarizes our Notes receivable, net as of December 31, 2025 and 2024 (dollars in thousands):

​	​	​	​	​	​	​	​	​
​	​	Interest rate at	​	Balance Outstanding (a)
​	​ ​ ​	December 31,	​ ​ ​	December 31,		​ ​ ​	December 31,
​	​	2025	​	2025		​	2024
Note due March 2025 (b)	​	—	%	$	—	​	$	42,807
Notes due October 2025 and May 2026 (c)	​	—	%	​	—	​	​	106,271
Note due December 2026 (d)	​	11.00	%	​	79,889	​	​	71,873
Note due December 2026 (e)	​	11.00	%	​	32,054	​	​	29,090
Notes due June 2027 (f)	​	18.00	%	​	4,815	​	​	4,470
Note due September 2027 (g)	​	6.90	%	​	33,812	​	​	31,771
Notes receivable	​	​	​	​	150,570	​	​	286,282
Allowance for credit losses	​	​	​	​	(591)	​	​	(38,433)
Total notes receivable, net		​	​	$	149,979	​	$	247,849

(a)	Outstanding note amounts include any accrued and unpaid interest, as applicable.

(b)

The Company had a secured note with an unaffiliated third party with an aggregate commitment of $32.5 million, all of which was funded. In April 2025, the borrower’s assets were acquired by an unaffiliated third party real estate technology company. In connection with the sale, the Company’s note and accrued interest were settled in full through the receipt of an equity interest in the real estate technology company. As the Company does not have significant influence in the real estate technology company, we adopted the measurement alternative accounting method for the investment. The measurement alternative measures the equity investment at cost less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same

F - 14

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

	issuer. The Company recorded its investment in the real estate technology company in Other Assets on the Consolidated Balance Sheets.

(c)

The Company had three loans (the “Notes”) with a joint venture that owned a 478 apartment home operating community located in Philadelphia, Pennsylvania with an aggregate commitment of $205.5 million (exclusive of accrued and unpaid interest and a $37.6 million loan reserve), all of which was funded. The Notes were senior to the equity in the borrower and were on non-accrual status. In May 2025, the Company acquired the developer’s equity interest in the joint venture. In connection with the acquisition, the developer paid the Company $6.7 million, which consisted primarily of unpaid interest on the Notes and reimbursement for certain costs previously advanced by the Company. As a result, the joint venture became wholly owned, and the Company began consolidating the community. The consolidation of the community resulted in the Company recording $3.9 million in previously unaccrued interest and a $0.3 million gain on consolidation both of which are recorded in Interest income and other income/(expense), net on the Consolidated Statements of Operations (See Note 3, Real Estate Owned for more information).

(d)

The Company has a secured mezzanine loan with a third party developer of a 482 apartment home community located in Riverside, California, which is expected to be completed in 2026, with an aggregate commitment of $59.7 million (exclusive of accrued and unpaid interest), all of which has been funded. Interest payments accrue and are due at maturity of the loan. The secured mezzanine loan has a scheduled maturity date in December 2026, with two one-year extension options.

(e)

The Company has a secured mezzanine loan with a third party developer of a 237 apartment home community located in Menifee, California, which was completed in 2025, with an aggregate commitment of $24.4 million (exclusive of accrued and unpaid interest), all of which has been funded. Interest payments accrue and are due at maturity of the loan. The secured mezzanine loan has a scheduled maturity date in December 2026, with two one-year extension options.

(f)

The Company and a syndicate of lenders previously entered into a $16.0 million secured credit facility with an unaffiliated third party. In 2023, the secured credit facility was amended to provide a new term loan in the amount of $19.0 million, and the Company’s commitment was increased from $1.5 million to $3.0 million (exclusive of accrued interest), all of which has been funded. Interest payments accrue and are due at maturity of the facility. The facility is secured by substantially all of the borrower’s assets and matures at the earliest of the following: (a) acceleration in the event of default; or (b) June 2027.

(g)

In September 2024, the Company entered into a $31.1 million secured mortgage loan with one of its joint ventures that owns a 66 apartment home operating community located in Santa Monica, California, in which the Company also holds a preferred investment. The contractual interest rate on the note receivable is SOFR plus a spread of 300 basis points. Interest payments are due monthly from net cash flow from the operating community. If net cash flow is insufficient to cover the interest payment on the payment date, the unpaid amount is added to the outstanding principal balance. The mortgage loan has a scheduled maturity date in September 2027. (See Note 5, Joint Ventures and Partnerships for further discussion).

The Company recognized $19.2 million, $24.2 million, and $14.5 million of interest income for the notes receivable described above during the years ended December 31, 2025, 2024, and 2023, respectively, none of which was related party interest. Interest income is included in Interest income and other income/(expense), net on the Consolidated Statements of Operations.

F - 15

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

A roll forward of our allowance for credit losses for the years ended December 31, 2025 and 2024 is as follows:

​

​	​	​
Allowance for credit losses as of December 31, 2023	$	(977)
(Provision)/recovery for credit losses	​	(37,456)
Write-offs charged against allowance	​	-
Allowance for credit losses as of December 31, 2024	$	(38,433)
(Provision)/recovery for credit losses	​	213
Write-offs charged against allowance (1)	​	37,629
Allowance for credit losses as of December 31, 2025	$	(591)

	(1)	See footnote (c) above for further information.

​

Investment in Joint Ventures and Partnerships

We use the equity method to account for investments in joint ventures and partnerships that qualify as VIEs where we are not the primary beneficiary and other entities that we do not control or where we do not own a majority of the economic interest but have the ability to exercise significant influence over the operating and financial policies of the investee. Throughout these financial statements we use the term “joint venture” or “partnership” when referring to investments in entities in which we do not have a 100% ownership interest. The Company also uses the equity method when we function as the managing partner and our venture partner has substantive participating rights or where we can be replaced by our venture partner as managing partner without cause. For a joint venture or partnership accounted for under the equity method, our share of net earnings or losses is reflected as income/loss when earned/incurred and distributions are credited against our investment in the joint venture or partnership as received.

In determining whether a joint venture or partnership is a VIE, the Company considers: the form of our ownership interest and legal structure; the size of our investment; the financing structure of the entity, including necessity of subordinated debt; estimates of future cash flows; ours and our partner’s ability to participate in the decision making related to acquisitions, disposition, budgeting and financing of the entity; obligation to absorb losses and preferential returns; nature of our partner’s primary operations; and the degree, if any, of disproportionality between the economic and voting interests of the entity. As of December 31, 2025, the Company did not have any investments in any joint ventures or partnerships that qualified as a VIE where we were determined to be the primary beneficiary.

We evaluate our investments in unconsolidated joint ventures for events or changes in circumstances that indicate there may be an other-than-temporary decline in value. We consider various factors to determine if a decrease in the value of the investment is other-than-temporary. These factors include, but are not limited to, age of the venture, our intent and ability to retain our investment in the entity, the financial condition and long-term prospects of the entity, the fair value of the property of the joint venture, and the relationships with the other joint venture partners and its lenders. The amount of loss recognized is the excess of the investment’s carrying amount over its estimated fair value. If we believe that the decline in fair value is temporary, no impairment is recorded. The aforementioned factors are taken into consideration as a whole by management in determining the valuation of our equity method investments. Should the actual results differ from management’s judgment, the valuation could be negatively affected and may result in a negative impact to our Consolidated Financial Statements.

Derivative Financial Instruments

The Company utilizes derivative financial instruments to manage interest rate risk and generally designates these financial instruments as cash flow hedges. Derivative financial instruments are recorded on our Consolidated Balance Sheets as either an asset or liability and measured quarterly at their fair value. The changes in fair value for cash flow hedges that are deemed effective are reflected in other comprehensive income/(loss) and for non-designated derivative financial instruments in earnings. The ineffective component of cash flow hedges, if any, is recorded in earnings.

Redeemable Noncontrolling Interests in the Operating Partnership and DownREIT Partnership

Interests in the Operating Partnership and the DownREIT Partnership held by limited partners are represented by OP Units and DownREIT Units, respectively. The income is allocated to holders of OP Units/DownREIT Units based

F - 16

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

upon net income available to common stockholders and the weighted average number of OP Units/DownREIT Units outstanding to total common shares plus OP Units/DownREIT Units outstanding during the period. Capital contributions, distributions, and profits and losses are allocated to noncontrolling interests in accordance with the terms of the partnership agreements of the Operating Partnership and the DownREIT Partnership.

Limited partners of the Operating Partnership and the DownREIT Partnership have the right to require such partnership to redeem all or a portion of the OP Units/DownREIT Units held by the limited partner at a redemption price equal to and in the form of the Cash Amount (as defined in the partnership agreement of the Operating Partnership or the DownREIT Partnership, as applicable), provided that such OP Units/DownREIT Units have been outstanding for at least one year, subject to certain exceptions. UDR, as the general partner of the Operating Partnership and the DownREIT Partnership may, in its sole discretion, purchase the OP Units/DownREIT Units by paying to the limited partner either the Cash Amount or the REIT Share Amount (generally one share of Common Stock of the Company for each OP Unit/DownREIT Unit), as defined in the partnership agreement of the Operating Partnership or the DownREIT Partnership, as applicable. Accordingly, the Company records the OP Units/DownREIT Units outside of permanent equity and reports the OP Units/DownREIT Units at their redemption value using the Company’s stock price at each balance sheet date.

Income Taxes

Due to the structure of the Company as a REIT and the nature of the operations for the operating properties, no provision for federal income taxes has been provided for at UDR. Historically, the Company has generally incurred only state and local excise and franchise taxes. UDR has elected for certain consolidated subsidiaries to be treated as taxable REIT subsidiaries (“TRS”). A TRS is a C-corporation that has not elected REIT status and, accordingly, is subject to federal and state income taxes.

Income taxes for our TRS are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. The Company’s deferred tax assets/(liabilities) are generally the result of differing depreciable lives on capitalized assets, temporary differences between book and tax basis of assets and liabilities and timing of expense recognition for certain accrued liabilities. As of December 31, 2025 and 2024, UDR’s net deferred tax asset/(liability) was $(0.5) million and $(0.8) million, respectively, and are recorded in Accounts payable, accrued expenses and other liabilities on the Consolidated Balance Sheets.

GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition.

The Company recognizes and evaluates its tax positions using a two-step process. First, UDR determines whether a tax position is more likely than not (greater than 50 percent probability) to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement.

The Company invests in assets that qualify for federal investment tax credits (“ITC”) through our TRS. An ITC reduces federal income taxes payable when qualifying depreciable property is acquired. The ITC is determined as a percentage of cost of the assets. The Company accounts for ITCs under the deferral method, under which the tax benefit from the ITC is deferred and amortized as a tax benefit into Tax (provision)/benefit, net on the Consolidated Statements of Operations over the book life of the qualifying depreciable property. The ITCs are recorded in Accounts payable, accrued expenses and other liabilities on the Consolidated Balance Sheets.

UDR had no material unrecognized tax benefit, accrued interest or penalties at December 31, 2025. UDR and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. When

F - 17

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

applicable, UDR recognizes interest and/or penalties related to uncertain tax positions in Tax (provision)/benefit, net on the Consolidated Statements of Operations.

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 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.

Discontinued Operations

In accordance with GAAP, a discontinued operation represents (1) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (2) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (1) a separate major line of business, (2) a separate major geographic area of operations, (3) a major equity method investment, or (4) other major parts of an entity.

We record sales of real estate that do not meet the definition of a discontinued operation in Gain/(loss) on sale of real estate owned on the Consolidated Statements of Operations.

Stock-Based Employee Compensation Plans

The Company measures the cost of employee services received in exchange for an award of an equity instrument based on the award’s fair value on the grant date and recognizes the cost as stock-based compensation expense over the period during which the employee is required to provide service in exchange for the award, which is generally the vesting period. For performance based awards, the Company remeasures the fair value based on the estimated achievement of the performance criteria each balance sheet date with adjustments made on a cumulative basis until the award is settled and the final compensation is known. Stock-based compensation expense is only recognized for performance based awards that we expect to vest, which we estimate based upon an assessment of the probability that the performance criteria will be achieved. Stock-based compensation expense associated with awards is updated for actual forfeitures. The fair value for market based awards issued by the Company is calculated utilizing a Monte Carlo simulation and the fair value for stock options issued by the Company is calculated utilizing the Black-Scholes-Merton formula. For further discussion, see Note 10, Employee Benefit Plans.

Advertising Costs

All advertising costs are expensed as incurred and reported on the Consolidated Statements of Operations within the line item Property operating and maintenance. During the years ended December 31, 2025, 2024, and 2023, total advertising expense was $10.3 million, $10.0 million, and $9.2 million, respectively.

Cost of Raising Capital

Costs incurred in connection with the issuance of equity securities are deducted from stockholders’ equity. Costs incurred in connection with the issuance or renewal of debt are recorded based on the terms of the debt issuance or renewal. Accordingly, if the terms of the renewed or modified debt instrument are deemed to be substantially different (i.e. a 10 percent or greater difference in the cash flows between instruments), all unamortized financing costs associated with the extinguished debt are charged to earnings in the current period and certain costs of new debt issuances are capitalized and amortized over the term of the debt. When the cash flows are not substantially different, the lender costs associated with the renewal or modification are capitalized and amortized into interest expense over the remaining term of the related debt instrument and other related costs are expensed. The balance of any unamortized financing costs associated with retired debt is expensed upon retirement. Deferred financing costs for new debt instruments include fees and costs incurred by the Company to obtain financing. Deferred financing costs are generally amortized on a straight-line basis, which approximates the effective interest method, over a period not to exceed the term of the related debt.

F - 18

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

Comprehensive Income/(Loss)

Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to stockholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the years ended December 31, 2025, 2024, and 2023, the Company’s other comprehensive income/(loss) consisted of the gain/(loss) (effective portion) on derivative instruments that are designated as and qualify as cash flow hedges, (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) into earnings, and the allocation of other comprehensive income/(loss) to noncontrolling interests. The (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) is included in Interest expense on the Consolidated Statements of Operations. See Note 14, Derivatives and Hedging Activity, for further discussion. The allocation of other comprehensive income/(loss) to redeemable noncontrolling interests during the years ended December 31, 2025, 2024, and 2023 was $(0.2) million, $(0.1) million, and $(0.2) million, respectively.

Forward Sales Agreements

​

From time to time the Company utilizes forward sales agreements for the future issuance of its common stock. When the Company enters into a forward sales agreement, the contract requires the Company to sell its shares to a counterparty at a predetermined price at a future date. The net sales price and proceeds attained by the Company will be determined on the dates of settlement, with adjustments during the term of the contract for the Company’s anticipated dividends as well as for a daily interest factor that varies with changes in the federal funds rate. The Company generally has the ability to determine the dates and method of settlement (i.e., gross physical settlement, net share settlement or cash settlement), subject to certain conditions and the right of the counterparty to accelerate settlement under certain circumstances.

​

The Company accounts for the shares of common stock reserved for issuance upon settlement as equity in accordance with ASC 815-40, Contracts in Entity's Own Equity, which permits equity classification when a contract is considered indexed to the entity’s own stock and the contract requires or permits the issuing entity to settle the contract in shares (either physically or net in shares).

​

The guidance establishes a two-step process for evaluating whether an equity-linked financial instrument is considered indexed to the entity’s own stock, first, evaluating the instrument’s contingent exercise provisions and second, evaluating the instrument’s settlement provisions. When entering into forward sales agreements, we determined that (i) none of the agreement’s exercise contingencies are based on observable markets or indices besides those related to the market for our own stock price; and (ii) none of the settlement provisions preclude the agreements from being indexed to our own stock.

​

Before the issuance of shares of common stock, upon physical or net share settlement of the forward sales agreements, the Company expects that the shares issuable upon settlement of the forward sales agreements will be reflected in its diluted income/(loss) per share calculations using the treasury stock method. Under this method, the number of shares of common stock used in calculating diluted income/(loss) per share is deemed to be increased by the excess, if any, of the number of shares of common stock that would be issued upon full physical settlement of the forward sales agreements over the number of shares of common stock that could be purchased by the Company in the open market (based on the average market price during the period) using the proceeds receivable upon full physical settlement (based on the adjusted forward sale price at the end of the reporting period). When the Company physically or net share settles any forward sales agreement, the delivery of shares of common stock would result in an increase in the number of weighted average common shares outstanding and dilution to basic income/(loss) per share. (See Note 8, Income/(Loss) per Share for further discussion).

​

Lease Receivables

​

During the years ended December 31, 2024 and 2023, the Company performed an analysis in accordance with the ASC 842, Leases, guidance to assess the collectibility of its operating lease receivables. This analysis included an assessment of collectibility of current and future rents and whether those lease payments were no longer probable of collection. In accordance with the leases guidance, if collection of lease payments is no longer deemed to be probable

F - 19

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

over the life of the lease contract, we recognize revenue only when cash is received, and all existing contractual operating lease receivables and straight-line lease receivables are reserved.

​

As of December 31, 2025 and 2024, the Company’s multifamily tenant lease receivables balance, net of its reserve, was approximately $5.7 million and $5.9 million, respectively, including its share from unconsolidated joint ventures. The Company’s retail tenant lease receivables balance (exclusive of straight-line rent receivables), net of its reserve, was approximately $0.7 million and $0.3 million, including its share from unconsolidated joint ventures, as of December 31, 2025 and 2024, respectively.

​

Use of Estimates

The preparation of these financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates.

Market Concentration Risk

The Company is subject to increased exposure from economic and other competitive factors specific to markets where the Company holds a significant percentage of the carrying value of its real estate portfolio. At December 31, 2025, the Company held greater than 10% of the carrying value of its real estate portfolio in each of the Metropolitan D.C. and Boston, Massachusetts markets.

3. REAL ESTATE OWNED

Real estate assets owned by the Company consist of income producing operating properties, properties under development, land held for future development, and held for disposition properties. As of December 31, 2025, the Company owned and consolidated 165 communities in 12 states plus the District of Columbia totaling 55,240 apartment homes. The following table summarizes the carrying amounts for our real estate owned (at cost) as of December 31, 2025 and 2024 (dollars in thousands):

​

​	​	​	​	​	​	​
​	​ ​ ​	December 31,		​ ​ ​	December 31,
​	​	2025		​	2024
Land	​	$	2,537,747	​	$	2,521,363
Depreciable property — held and used:	​		​	​		​
Land improvements	​		277,996	​		271,702
Building, improvements, and furniture, fixtures and equipment	​		13,577,262	​		13,189,796
Real estate intangible assets	​	​	21,995	​	​	11,933
Under development:	​		​	​		​
Land and land improvements	​		13,468	​		—
Building, improvements, and furniture, fixtures and equipment	​		59,417	​		—
Real estate held for disposition:	​		​	​		​
Land and land improvements	​		—	​		44,645
Building, improvements, and furniture, fixtures and equipment	​		—	​		135,844
Real estate intangible assets	​	​	—	​	​	38,080
Real estate owned	​		16,487,885	​		16,213,363
Accumulated depreciation	​		(7,374,546)	​		(6,901,026)
Real estate owned, net	​	$	9,113,339	​	$	9,312,337

​

Acquisitions

In May 2025, the Company acquired the developer’s equity interest in a 478 apartment home operating community located in Philadelphia, Pennsylvania. The Company previously had three loans with the joint venture including a senior loan. In connection with the acquisition, the developer paid the Company $6.7 million, which consisted primarily of unpaid interest on the senior loan and reimbursement for certain costs previously advanced by the Company. (See Note 2, Significant Accounting Policies for more information). The Company increased its real estate

F - 20

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

assets owned by approximately $166.0 million, recorded approximately $10.1 million of real estate intangibles, recorded $6.4 million of in-place lease intangibles, and recognized a gain on consolidation of $0.3 million.

In November 2025, the Company acquired a 406 apartment home operating community located in Woodbridge, Virginia for approximately $147.7 million. The Company increased its real estate assets owned by approximately $144.4 million and recorded $3.3 million of in-place lease intangibles.

​

In January 2024, the Company acquired its joint venture partner’s common equity interest in a 173 apartment home operating community located in Oakland, California for $1.4 million. The community was previously owned by a consolidated joint venture of the Company. (See Note 5, Joint Ventures and Partnerships for more information).

​

In February 2023, the Company took title to a 136 apartment home operating community located in San Francisco, California, through a foreclosure proceeding. The community was previously owned by a consolidated joint venture of the Company. (See Note 5, Joint Ventures and Partnerships for more information).

​

In August 2023, the Company acquired a portfolio of six operating communities totaling 1,753 apartment homes, which included four operating communities in Dallas, Texas and two operating communities in Austin, Texas, for a purchase price of $354.6 million. The Company acquired the portfolio with a combination of cash, the assumption of six mortgage loans with an outstanding principal balance of approximately $209.4 million (fair value of $191.7 million), and the issuance of 3.6 million OP Units to the seller valued at $141.4 million. The OP Units were valued based on the closing price per share of UDR’s common stock on the date of acquisition in accordance with GAAP. The Company increased its real estate assets owned by approximately $344.8 million, recorded $9.8 million of in-place lease intangibles, and recorded a $17.6 million debt discount in connection with the below-market debt assumed.

​

Dispositions

In January 2025, the Company sold an operating community located in Brooklyn, New York with a total of 188 apartment homes for gross proceeds of $127.5 million, resulting in a gain of approximately $23.5 million. This operating community was classified as held for disposition as of December 31, 2024.

​

In January 2025, the Company sold an operating community located in Englewood, New Jersey with a total of 185 apartment homes for gross proceeds of $84.0 million, resulting in a gain of approximately $24.4 million. This operating community was classified as held for disposition as of December 31, 2024.

​

In December 2025, the Company contributed four wholly-owned operating communities, totaling 974 apartment homes located in various markets, to our existing joint venture with LaSalle, while maintaining our 51% ownership interest in the venture. The contribution resulted in the Company no longer retaining a controlling interest in the communities, and the Company deconsolidated the operating communities. In connection with the contribution, our joint venture partner contributed cash and new debt was placed on the newly contributed operating communities and certain existing operating communities, resulting in the Company receiving approximately $202.8 million of cash proceeds. The transaction was accounted for as a partial sale and resulted in a gain of approximately $195.0 million, which was recorded in Gain/(loss) on sale of real estate owned on the Consolidated Statement of Operations, which consisted of the gain on the partial sale and the initial measurement of our retained interest at fair value. (See Note 5, Joint Ventures and Partnerships for further discussion).

​

In February 2024, the Company sold an operating community located in Arlington, Virginia with a total of 214 apartment homes for gross proceeds of $100.0 million, resulting in a gain of approximately $16.9 million. This operating community was classified as held for disposition as of December 31, 2023.

​

In January 2023, the Company sold the retail component of a development community located in Washington D.C. for gross proceeds of approximately $14.4 million, resulting in a gain of less than $0.1 million. The gross proceeds were received ratably throughout the development of the community and are reflected as a reduction of capital expenditures.

​

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UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

In June 2023, the Company contributed four wholly-owned operating communities, totaling 1,328 apartment homes located in various markets, to a newly formed joint venture in exchange for a 51.0% interest in the venture. The contribution resulted in the Company no longer retaining a controlling interest in the communities, and the Company deconsolidated the operating communities. The Company received approximately $247.9 million in cash proceeds from our joint venture partner at formation. The transaction was accounted for as a partial sale and resulted in a gain of approximately $325.9 million, which was recorded in Gain/(loss) on sale of real estate owned on the Consolidated Statement of Operations, which consisted of the gain on the partial sale and the initial measurement of our retained interest at fair value.

In December 2023, the Company sold an operating community located in Hillsboro, Oregon with a total of 276 apartment homes for gross proceeds of $78.6 million, resulting in a gain of approximately $25.3 million.

Developments

At December 31, 2025, the Company was developing one wholly-owned community totaling 300 apartment homes, none of which have been completed, in which we have a gross carrying value of $72.9 million. The homes are estimated to be completed during the second quarter of 2027.

Other Activity

In connection with the acquisition of certain properties, the Company agreed to pay certain of the tax liabilities of certain contributors if the Company sells one or more of the properties contributed in a taxable transaction prior to the expiration of specified periods of time following the acquisition. The Company may, however, sell, without being required to pay any tax liabilities, any of such properties in a non-taxable transaction, including, but not limited to, a tax deferred Section 1031 exchange.

Further, the Company has agreed to maintain certain debt some of which may be guaranteed by certain contributors for specified periods of time following the acquisition. The Company, however, has the ability to refinance or repay guaranteed debt or to substitute new debt if the debt and the guaranty continue to satisfy certain conditions.

Amortization of Intangible Assets

The following table provides a summary of the aggregate amortization for the intangible assets acquired in the acquisition of real estate for each of the next five years and thereafter (in thousands):

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Unamortized Balance as of December 31, 2025		​	2026		​	2027		​	2028		​	2029		​	2030		​	Thereafter
Real estate intangible assets, net (a)	​	$	13,188	​	$	3,124	​	$	3,041	​	$	1,935	​	$	1,901	​	$	1,749	​	$	1,438
In-place lease intangible assets, net (b)	​	​	8,460	​	​	4,832	​	​	594	​	​	479	​	​	434	​	​	300	​	​	1,821
Total	​	$	21,648	​	$	7,956	​	$	3,635	​	$	2,414	​	$	2,335	​	$	2,049	​	$	3,259

​

​

​

	(a)	Real estate intangible assets, net is recorded net of accumulated amortization of $8.8 million in Real estate held for investment, net on the Consolidated Balance Sheets. For the years ended December 31, 2025 and 2024, $2.7 million and $4.0 million, respectively, of amortization expense was recorded in Depreciation and Amortization on the Consolidated Statement of Operations.

​

	(b)	In-place lease intangible assets, net is recorded net of accumulated amortization of $8.7 million in Other assets on the Consolidated Balance Sheets. For the years ended December 31, 2025 and 2024, $2.9 million and $8.9 million, respectively, was recorded in _Depreciation and Amortizatio_n on the Consolidated Statement of Operations.

​

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UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

4. VARIABLE INTEREST ENTITIES

The Company has determined that the Operating Partnership and DownREIT Partnership are VIEs as the limited partners lack substantive kick-out rights and substantive participating rights. The Company has concluded that it is the primary beneficiary of, and therefore consolidates, the Operating Partnership and DownREIT Partnership based on its role as the sole general partner of the Operating Partnership and DownREIT Partnership. The Company’s role as community manager and its equity interests give us the power to direct the activities that most significantly impact the economic performance and the obligation to absorb potentially significant losses or the right to receive potentially significant benefits of the Operating Partnership and DownREIT Partnership.

5. JOINT VENTURES AND PARTNERSHIPS

UDR has entered into joint ventures and partnerships with unrelated third parties to own, operate, acquire, renovate, develop, redevelop, dispose of, and manage real estate assets that are either consolidated and included in Real estate owned on the Consolidated Balance Sheets or are accounted for under the equity method of accounting, and are included in Investment in and advances to unconsolidated joint ventures, net, on the Consolidated Balance Sheets. The Company consolidates the entities that we control as well as any variable interest entity where we are the primary beneficiary. 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.

UDR’s joint ventures and partnerships are funded with a combination of debt and equity. Our losses are typically limited to our investment and except as noted below, the Company does not guarantee any debt, capital payout or other obligations associated with our joint ventures and partnerships.

Unconsolidated joint ventures and partnerships

​

The Company recognizes earnings or losses from our investments in unconsolidated joint ventures and partnerships consisting of our proportionate share of the net earnings or losses of the joint ventures and partnerships. In addition, we may earn fees for providing management services for the communities held by the unconsolidated joint ventures and partnerships.

F - 23

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

The following table summarizes the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net, which are accounted for under the equity method of accounting as of December 31, 2025 and 2024 (dollars in thousands):

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Number of	​	Number of	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Operating	​	Apartment	​	UDR's Weighted Average					​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Communities	​	Homes	​	Ownership Interest				​	​	Investment at					​	Income/(loss) from investments
​	​	December 31,	​	December 31,	​	December 31,	​	​	December 31,		​	December 31,		​	December 31,		​	Year Ended December 31,
Joint Ventures	​	2025	​ ​ ​	2025	​	2025	​	2024			​	2025		​	2024		​	2025		​ ​ ​	2024		​ ​ ​	2023
Operating:	​	​	​	​	​	​	​	​	​		​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
UDR/MetLife (a)	​	13	​	2,837	​	50.2	%	​	50.2	%	​	$	189,420	​	$	206,308	​	$	(3,202)	​	$	(7,438)	​	$	(5,378)
UDR/LaSalle (b)	​	9	​	2,564	​	51.0	%	​	51.0	%	​	​	242,337	​	​	267,562	​	​	(4,332)	​	​	(8,027)	​	​	(3,660)
Total Joint Ventures	​	22		5,401	​	​		​	​	​	​	$	431,757	​	$	473,870	​	$	(7,534)	​	$	(15,465)	​	$	(9,038)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Number of	​	Apartment	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Commitments	​	Homes	​	Weighted	​	​	​	​	​	Investment at					​	Income/(loss) from investments
Debt and Preferred Equity Program	​	December 31,	​	December 31,	​	Average	​	​	UDR		​	December 31,		​	December 31,		​	Year Ended December 31,
and Real Estate Technology Investments (c)	​	2025	​	2025	​	Rate	​	​	Commitment (c)		​	2025		​	2024		​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
Preferred equity investments:		​		​	​	​	​		​	​	​		​	​		​	​	​	​	​	​	​	​	​	​
Operating	​	12	​	6,766	​	9.7	%	​	$	354,989	​	$	373,231	​	$	299,846	​	$	23,767	​	$	16,809	​	$	25,781
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate technology and sustainability investments:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Real estate technology and sustainability investments	​	N/A	​	N/A	​	N/A	​	​	$	86,000	​	​	74,747	​	​	57,344	​	​	6,363	​	​	9,959	​	​	104
Total Debt and Preferred Equity Program and Real Estate Technology and Sustainability Investments	​	​	​	​	​	​	​	​	​	​	​	​	447,978	​	​	357,190	​	​	30,130	​	​	26,768	​	​	25,885
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Sold unconsolidated joint ventures and partnerships	​	​	​	​	​	​	​	​	​	​	​	​	—	​	​	81,123	​	​	5,792	​	​	8,932	​	​	(12,154)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total investment in and advances to unconsolidated joint ventures, net (a)									​	​	​	$	879,735	​	$	912,183	​	$	28,388	​	$	20,235	​	$	4,693

(a)	As of December 31, 2025 and 2024, the Company’s negative investment in one UDR/MetLife community of $6.8 million and $5.3 million, respectively, is recorded in Accounts payable, accrued expenses, and other liabilities on the Consolidated Balance Sheets.

(b)

In December 2025, the Company contributed four operating communities, located in various markets, to the joint venture, while maintaining our 51.0% ownership in the venture. In connection with the contribution, our joint venture partner contributed cash and new debt was placed on the newly contributed operating communities and certain existing operating communities, resulting in the Company receiving approximately $202.8 million of cash proceeds. (See Note 3, Real Estate Owned for further discussion).

(c)

The Debt and Preferred Equity Program is the program through which the Company makes investments, including preferred equity investments, first mortgage loans, mezzanine loans (loans are recorded in Notes receivable, net on the Consolidated Balance Sheets) or other structured investments that may receive a fixed yield on the investment and may include provisions pursuant to which the Company participates in the increase in value of the property upon monetization of the applicable property. The Company’s preferred equity investments include two investments that receive a variable percentage of the value created from the project upon a capital or liquidating event. During the year ended December 31, 2025, the Company entered into and funded three new preferred equity investments and two preferred equity investments were fully redeemed.

In April 2025, the Company entered into a joint venture agreement with an unaffiliated joint venture partner in an operating community with a total of 256 apartment homes located in Daly City, California. The Company’s preferred equity investment of $13.0 million earns a preferred return of 12.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture. The Company has concluded that it does not control the joint ventures and accounts for its investments under the equity method of accounting.

In June 2025, the Company received full repayment of its approximately $54.8 million preferred equity investment, which was inclusive of principal and accrued return, in a stabilized community located in Queens, New York, upon recapitalization of the venture.

In July 2025, the Company entered into a joint venture agreement with an unaffiliated joint venture partner in an operating community with a total of 350 apartment homes located in Orlando, Florida. The Company’s preferred equity investment of $23.8 million earns a preferred return of 11.25% per annum. The unaffiliated joint venture partner is the managing member of the joint venture. The Company has concluded that it does not control the joint

F - 24

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

venture and accounts for its investments under the equity method of accounting.

In August 2025, the Company entered into a joint venture agreement with an unaffiliated joint venture partner in an operating community with a total of 400 apartment homes located in Yorba Linda, California. The Company’s preferred equity investment of $35.8 million earns a preferred return of 10.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture. The Company has concluded that it does not control the joint venture and accounts for its investments under the equity method of accounting.

In September 2025, the Company received full repayment of its approximately $32.2 million preferred equity investment, which was inclusive of principal and accrued return, in a stabilized community located in Thousand Oaks, California.

In December 2025, the Company received a $10.3 million partial paydown from one of its operating preferred equity investments located in Allen, Texas, upon recapitalization of the joint venture. In addition, the maturity date of our preferred investment was extended to September 30, 2027.

In January 2026, the Company received a $52.9 million partial paydown from one of its operating preferred equity investments in a portfolio of stabilized apartment communities located in various markets upon the recapitalization of the joint venture.

(d)	Represents UDR’s maximum funding commitment only and therefore excludes other activity such as income from investments.

​

As of December 31, 2025 and 2024, the Company had deferred fees of $8.4 million and $7.6 million, respectively, which will be recognized through earnings over the weighted average life of the related properties, upon the disposition of the properties to a third party, or upon completion of certain development obligations.

The Company recognized management fees of $11.4 million, $8.3 million, and $6.8 million during the years ended December 31, 2025, 2024, and 2023, respectively, for management of the communities held by the joint ventures and partnerships. The management fees are included in Joint venture management and other fees on the Consolidated Statements of Operations.

The Company may, in the future, make additional capital contributions to certain of our joint ventures and partnerships should additional capital contributions be necessary to fund acquisitions or operations.

We consider various factors to determine if a decrease in the value of our Investment in and advances to unconsolidated joint ventures, net is other-than-temporary. These factors include, but are not limited to, age of the venture, our intent and ability to retain our investment in the entity, the financial condition and long-term prospects of the entity, and the relationships with the other joint venture partners and its lenders. Based on the significance of the unobservable inputs, we classify these fair value measurements within Level 3 of the valuation hierarchy. The Company did not incur any other-than-temporary impairments in the value of its investments in unconsolidated joint ventures during the years ended December 31, 2025 and 2023. For the year ended December 31, 2024, the Company recorded an $8.1 million non-cash impairment loss on one of its preferred equity investment (recorded in Income/(loss) from unconsolidated entities on the Consolidated Statements of Operations) due to a decrease in the value of the operating community that it deemed to be other-than-temporary.

F - 25

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

Condensed summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the years ended December 31, 2025, 2024, and 2023 (dollars in thousands):

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	​		​	​		​	Debt and Preferred		​	​	​
​	​	​		​	​		​	Equity Program		​		​
As of and For the	​	UDR/		​	UDR/		​	and Other		​		​
Year Ended December 31, 2025	​	MetLife		​	LaSalle		​	Investments		​	Total
Condensed Statements of Operations:	​	​	​	​	​	​	​	​	​	​	​	​
Total revenues	​	$	146,406	​	$	51,870	​	$	178,221	​	$	376,497
Property operating expenses	​		61,914	​		18,566	​		92,172	​		172,652
Real estate depreciation and amortization	​		53,340	​		38,744	​		69,530	​		161,614
Operating income/(loss)	​		31,152	​		(5,440)	​		16,519	​		42,231
Interest expense	​		(33,607)	​		(3,994)	​		(103,620)	​		(141,221)
Other income/(loss)	​		—	​		—	​		3,718	​		3,718
Net unrealized/realized gain/(loss) on held investments	​	​	—	​	​	—	​	​	70,039	​	​	70,039
Net income/(loss)	​	$	(2,455)	​	$	(9,434)	​	$	(13,344)	​	$	(25,233)
​	​	​	​	​	​	​	​	​	​	​	​	​
Condensed Balance Sheets:	​		​	​		​	​		​	​		​
Total real estate, net	​	$	1,137,830	​	$	764,229	​	$	1,678,536	​	$	3,580,595
Investments, at fair value	​	​	—	​	​	—	​	​	489,468	​	​	489,468
Cash and cash equivalents	​		28,596	​		10,308	​		39,273	​		78,177
Other assets	​		9,464	​		7,704	​		117,650	​		134,818
Total assets	​		1,175,890	​		782,241	​		2,324,927	​		4,283,058
Third party debt, net	​		844,681	​		297,714	​		1,353,686	​		2,496,081
Accounts payable and accrued liabilities	​		18,431	​		6,887	​		155,143	​		180,461
Total liabilities	​		863,112	​		304,601	​		1,508,829	​		2,676,542
Total equity	​	$	312,778	​	$	477,640	​	$	816,098	​	$	1,606,516

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	Debt and Preferred		​	​	​
​	​	​	​	​	​	​	​	Equity Program		​		​
As of and For the	​	UDR/		​	UDR/		​	and Other		​		​
Year Ended December 31, 2024	​	MetLife		​	LaSalle		​	Investments		​	Total
Condensed Statements of Operations:	​	​	​	​	​	​	​	​	​	​	​	​
Total revenues	​	$	141,014	​	$	49,063	​	$	131,876	​	$	321,953
Property operating expenses	​		64,329	​		17,657	​		69,737	​		151,723
Real estate depreciation and amortization	​		53,543	​		45,375	​		51,633	​		150,551
Operating income/(loss)	​		23,142	​		(13,969)	​		10,506	​		19,679
Interest expense	​		(33,491)	​		(2,698)	​		(74,268)	​		(110,457)
Other income/(loss)	​		—	​		—	​		(3,840)	​		(3,840)
Net unrealized/realized gain/(loss) on held investments	​	​	—	​	​	—	​	​	84,835	​	​	84,835
Net income/(loss)	​	$	(10,349)	​	$	(16,667)	​	$	17,233	​	$	(9,783)
​	​	​	​	​	​	​	​	​	​	​	​	​
Condensed Balance Sheets:	​		​	​		​	​	​	​	​		​
Total real estate, net	​	$	1,174,695	​	$	567,474	​	$	1,372,206	​	$	3,114,375
Investments, at fair value	​	​	—	​	​	—	​	​	372,478	​	​	372,478
Cash and cash equivalents	​		12,528	​		5,688	​		29,716	​		47,932
Other assets	​		20,774	​		1,334	​		125,236	​		147,344
Total assets	​		1,207,997	​		574,496	​		1,899,636	​		3,682,129
Third party debt, net	​		845,963	​		45,246	​		1,168,926	​		2,060,135
Accounts payable and accrued liabilities	​		19,393	​		5,150	​		133,962	​		158,505
Total liabilities	​		865,356	​		50,396	​		1,302,888	​		2,218,640
Total equity	​	$	342,641	​	$	524,100	​	$	596,748	​	$	1,463,489

​

F - 26

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	​	​	​	​	​	​	Debt and Preferred		​	​	​
​	​	​	​	​	​	​	​	Equity Program		​	​	​
For the	​	UDR/		​	UDR/		​	and Other		​		​
Year Ended December 31, 2023	​	MetLife		​	LaSalle		​	Investments		​	Total
Condensed Statements of Operations:	​	​	​	​	​	​	​	​	​	​	​	​
Total revenues	​	$	139,073	​	$	20,514	​	$	109,753	​	$	269,340
Property operating expenses	​		58,298	​		6,896	​		54,442	​		119,636
Real estate depreciation and amortization	​		54,895	​		21,182	​		43,407	​		119,484
Operating income/(loss)	​		25,880	​		(7,564)	​		11,904	​		30,220
Interest expense	​		(32,720)	​		(126)	​		(53,385)	​		(86,231)
Other income/(loss)	​	​	—	​		—	​		537	​		537
Net unrealized/realized gain/(loss) on held investments	​	​	—	​	​	—	​	​	23,403	​	​	23,403
Net income/(loss)	​	$	(6,840)	​	$	(7,690)	​	$	(17,541)	​	$	(32,071)

​

​

​

​

​

6. LEASES

Lessee - Ground Leases

UDR has six communities that are subject to ground leases, under which UDR is the lessee, that expire between 2043 and 2103, inclusive of extension options we are reasonably certain will be exercised. All of these leases are classified as operating leases through the lease term expiration based on our election of the practical expedient provided by the leasing standard. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the remaining lease term. We currently do not hold any finance leases. The Company also elected the short-term lease exception provided by the leasing standard and therefore only recognizes right-of-use assets and lease liabilities for leases with a term greater than one year. No leases qualified for the short-term lease exception during the years ended December 31, 2025 and 2024.

As of December 31, 2025 and 2024, the Operating lease right-of-use assets were $187.6 million and $187.0 million, respectively, and the Operating lease liabilities were $183.0 million and $182.3 million, respectively, on our Consolidated Balance Sheets related to our ground leases. The value of the Operating lease right-of-use assets exceeds the value of the Operating lease liabilities due to prepaid lease payments. The calculation of these amounts includes minimum lease payments over the remaining lease term (described further in the table below). Variable lease payments are excluded from the right-of-use assets and lease liabilities and are recognized in earnings in the period in which the obligation for those payments is incurred.

As the discount rate implicit in the leases was not readily determinable, we determined the discount rate for these leases utilizing the Company’s incremental borrowing rate at a portfolio level, adjusted for the remaining lease term, and the form of underlying collateral.

The weighted average remaining lease term for these leases was 40.8 years and 41.3 years at December 31, 2025 and 2024, respectively, and the weighted average discount rate was 5.0% at both December 31, 2025 and 2024.

F - 27

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

Future minimum lease payments and total operating lease liabilities from our ground leases as of December 31, 2025 are as follows (dollars in thousands):

​	​	​	​
​	​	Ground Leases
2026	​	$	12,695
2027	​	​	12,695
2028	​	​	12,695
2029	​	​	12,695
2030	​	​	12,695
Thereafter	​	​	389,340
Total future minimum lease payments (undiscounted)	​	​	452,815
Difference between future undiscounted cash flows and discounted cash flows	​	​	(269,852)
Total operating lease liabilities (discounted)	​	$	182,963

​

For purposes of recognizing our ground lease contracts, the Company uses the minimum lease payments, if stated in the agreement. For ground lease agreements where there is a rent reset provision based on a change in an index or a rate (i.e., changes in fair market rental rates or changes in the consumer price index) but that does not include a specified minimum lease payment, the Company uses the current rent over the remainder of the lease term. If there is a contingency upon which some or all of the variable lease payments that will be paid over the remainder of the lease term are based, which is resolved such that those payments now meet the definition of lease payments, the Company will remeasure the right-of-use asset and lease liability on the reset date.

The components of operating lease expenses were as follows (dollars in thousands):

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​	​	2025		​	2024		​	2023
Lease expense:	​	​	​	​	​	​	​	​	​
Contractual lease expense	​	$	13,562	​	$	13,322	​	$	13,173
Variable lease expense (a)	​	​	234	​	​	189	​	​	155
Total operating lease expense (b)(c)	​	$	13,796	​	$	13,511	​	$	13,328

	(a)	Variable lease expense includes adjustments such as changes in the consumer price index and payments based on a percentage of a community’s revenue.

	(b)	Lease expense is reported within the line item Other operating expenses on the Consolidated Statements of Operations.

	(c)	For the year ended December 31, 2025, Operating lease right-of-use assets and Operating lease liabilities amortized by $3.8 million and $3.7 million, respectively, for the year ended December 31, 2024, Operating lease right-of-use assets and Operating lease liabilities amortized by $3.6 million and $3.5 million, respectively, and for the year ended December 31, 2023, Operating lease right-of-use assets and Operating lease liabilities amortized by $3.5 million and $3.4 million, respectively. Due to the net impact of the amortization, the Company recorded $0.1 million, $0.1 million and $0.1 million of total operating lease expense during the years ended December 31, 2025, 2024 and 2023, respectively.

​

Lessor - Apartment Home, Retail and Commercial Space Leases

​

UDR’s communities and retail and commercial space are leased to tenants under operating leases. As of December 31, 2025, our apartment home leases generally have initial terms of 12 months or less. As of December 31, 2025, our retail and commercial space leases generally have initial terms of between 5 and 15 years and represent approximately 1% to 2% of our total lease revenue. Our apartment home leases are generally renewable at the end of the lease term, subject to potential changes in rental rates, and our retail and commercial space leases generally have renewal options, subject to associated increases in rental rates due to market-based or fixed-price renewal options and certain other conditions. (See Note 16, Reportable Segments for further discussion around our major revenue streams and disaggregation of our revenue).

​

F - 28

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

Future minimum lease payments from our retail and commercial leases as of December 31, 2025 are as follows (dollars in thousands):

​	​	​	​
​	​	Retail and Commercial Leases
2026	​	$	28,234
2027	​	​	26,442
2028	​	​	23,636
2029	​	​	19,317
2030	​	​	14,657
Thereafter	​	​	87,610
Total future minimum lease payments (a)	​	$	199,896

	(a)	We have excluded our apartment home leases from this table as our apartment home leases generally have initial terms of 12 months or less.

Certain of our leases with retail and commercial tenants provide for the payment by the lessee of additional variable rent based on a percentage of the tenant’s revenue. The amounts shown in the table above do not include these variable percentage rents. The Company recorded variable percentage rents of $0.7 million, $1.1 million and $1.1 million during the years ended December 31, 2025, 2024 and 2023, respectively.

F - 29

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

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% Medium-Term Notes due January 2028 (net of discounts of $242 and $361, respectively) (l)	​	​	299,758	​	​	299,639	​	3.50	%	2.0	​	​
4.40% Medium-Term Notes due January 2029 (net of discounts of $2 and $2, respectively) (g) (l)	​	​	299,998	​	​	299,998	​	4.27	%	3.1	​	​
3.20% Medium-Term Notes due January 2030 (net of premiums of $5,548 and $6,921, respectively) (h) (l)	​	​	605,548	​	​	606,921	​	3.32	%	4.0	​	​
3.00% Medium-Term Notes due August 2031 (net of premiums of $6,720 and $7,914, respectively) (i) (l)	​	​	606,720	​	​	607,914	​	3.01	%	5.6	​	​
2.10% Medium-Term Notes due August 2032 (net of discounts of $232 and $267, respectively) (l)	​	​	399,768	​	​	399,733	​	2.10	%	6.6	​	​
1.90% Medium-Term Notes due March 2033 (net of discounts of $869 and $989, respectively) (l)	​	​	349,131	​	​	349,011	​	1.90	%	7.2	​	​
2.10% Medium-Term Notes due June 2033 (net of discounts of $742 and $842, respectively) (l)	​	​	299,258	​	​	299,158	​	2.10	%	7.5	​	​
5.125% Medium-Term Notes due September 2034 (net of discounts of $2,649 and $2,954, respectively) (j) (l)	​	​	297,351	​	​	297,046	​	4.95	%	8.7	​	​
3.10% Medium-Term Notes due November 2034 (net of discounts of $780 and $868, respectively) (k) (l)	​	​	299,220	​	​	299,132	​	3.13	%	8.8	​	​
Deferred financing costs	​		(17,838)	​		(20,003)		​		​		​
Total Unsecured Debt, net	​		4,860,189	​		4,687,634		3.36	%	4.5		​
Total Debt, net	​	$	5,821,369	​	$	5,826,965		3.38	%	4.3		​

​

For purposes of classification of the above table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument.

F - 30

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. As of December 31, 2025, secured debt encumbered approximately 10% of UDR’s total real estate owned based upon gross book value (approximately 90% of UDR’s real estate owned based on gross book value is unencumbered).

(a) At December 31, 2025, fixed rate mortgage notes payable are generally due in monthly installments of principal and interest and mature at various dates from June 2026 through February 2031 and carry interest rates ranging from 2.62% to 4.39%.

In July 2025, the Company repaid a $44.3 million fixed rate mortgage at maturity with borrowings from the Company’s unsecured commercial paper program.

In November 2025, the Company repaid a $127.6 million fixed rate mortgage at maturity with borrowings from the Company’s unsecured commercial paper program.

The Company will from time to time acquire properties subject to fixed rate debt instruments. In those situations, the Company records the debt at its estimated fair value and amortizes any difference between the fair value and par value to interest expense over the term of the underlying debt instrument.

(b) During the years ended December 31, 2025, 2024, and 2023, the Company had $0.7 million, $1.3 million, and $3.4 million, respectively, of amortization of the fair market adjustment of debt assumed in the acquisition of properties inclusive of its fixed rate mortgage notes payable, which was included in Interest expense on the Consolidated Statements of Operations. The unamortized fair market adjustment was a net premium/(discount) of $(0.5) million and $0.2 million at December 31, 2025 and 2024, respectively.

​

(c) The variable rate mortgage note payable secures a tax-exempt housing bond issue that matures in March 2032. Interest on this note is payable in monthly installments. As of December 31, 2025, the variable interest rate on the mortgage note was 3.11%.

(d) The Company has a $1.3 billion unsecured revolving credit facility (the “Revolving Credit Facility”) and a $350.0 million unsecured term loan (the “Term Loan”). The credit agreement for these facilities (the “Credit Agreement”) allows the total commitments under the Revolving Credit Facility and the total borrowings under the Term Loan to be increased to an aggregate maximum amount of up to $2.5 billion, subject to certain conditions, including obtaining commitments from one or more lenders. The Revolving Credit Facility has a scheduled maturity date of August 31, 2028, with two six-month extension options, subject to certain conditions. In September 2025, the Company amended the Term Loan to extend the maturity date to January 2029, with two one-year extension options, subject to certain conditions. The Term Loan was previously set to mature on January 31, 2027.

Based on the Company’s current credit rating, the Revolving Credit Facility has an interest rate equal to SOFR plus a margin of 77.5 basis points and a facility fee of 15 basis points, and the Term Loan has an interest rate equal to SOFR plus a margin of 85.0 basis points. Depending on the Company’s credit rating, the margin under the Revolving Credit Facility ranges from 70 to 140 basis points, the facility fee ranges from 10 to 30 basis points, and the margin under the Term Loan ranges from 75 to 160 basis points. In addition, the Credit Agreement allows for the Company in consultation with the sustainability structuring agent to propose key performance indicators with respect to certain environmental, social, and governance goals of the Company, and thresholds or targets with respect thereto, and a related amendment to the Credit Agreement, that if entered into may allow a change in the applicable margin for the Term Loan of up to five basis points.

In September 2025, the Company entered into three interest rate swaps totaling $175.0 million of notional value, which became effective in September 2025, to hedge against interest rate risk on a portion of the Term Loan debt until October 2027. The weighted average interest rate on $175.0 million of the Term Loan debt, inclusive of the impact of interest rate swaps, is 4.04% until October 2027.

The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Credit Agreement also includes customary events of default, in certain cases subject to customary periods to cure. The occurrence of an event of default, following the applicable cure period, would permit the

F - 31

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

lenders to, among other things, declare the unpaid principal, accrued and unpaid interest and all other amounts payable under the Credit Agreement to be immediately due and payable.

The following is a summary of short-term bank borrowings under the Revolving Credit Facility at December 31, 2025 and 2024 (dollars in thousands):

​	​	​	​	​	​	​	​
​	​ ​ ​	December 31,		​ ​ ​	December 31,		​
​		2025			2024		​
Total revolving credit facility	​	$	1,300,000	​	$	1,300,000	​
Borrowings outstanding at end of period (1)	​		—	​		—	​
Weighted average daily borrowings during the period ended	​		—	​		—	​
Maximum daily borrowings during the period ended	​		—	​		—	​
Weighted average interest rate during the period ended	​		—	%		—	%
Interest rate at end of the period	​		—	%		—	%

(1)	Excludes $4.3 million and $3.4 million of letters of credit at December 31, 2025 and 2024, respectively.

(e) The Company has an unsecured commercial paper program. Under the terms of the program, the Company may issue unsecured commercial paper up to a maximum aggregate amount outstanding of $700.0 million. The notes are sold under customary terms in the United States commercial paper market and rank pari passu with all of the Company’s other unsecured indebtedness. The notes are fully and unconditionally guaranteed by the Operating Partnership.

The following is a summary of short-term bank borrowings under the unsecured commercial paper program at December 31, 2025 and 2024 (dollars in thousands):

​	​	​	​	​	​	​	​
​	​ ​ ​	December 31,		​ ​ ​	December 31,
​	​	2025		​	2024
Total unsecured commercial paper program		$	700,000	​	$	700,000	​
Borrowings outstanding at end of period	​		445,000	​		289,900	​
Weighted average daily borrowings during the period ended	​		318,244	​		390,237	​
Maximum daily borrowings during the period ended	​		650,000	​		645,000	​
Weighted average interest rate during the period ended	​		4.4	%		5.4	%
Interest rate at end of the period	​		3.9	%		4.7	%

​

(f) The Company has a working capital credit facility, which provides for a $75.0 million unsecured revolving credit facility (the “Working Capital Credit Facility”) with a scheduled maturity date of January 12, 2027. In December 2025, the Company extended the maturity date from January 12, 2026 to January 12, 2027, with two one-year extension options. Based on the Company’s current credit rating, the Working Capital Credit Facility has an interest rate equal to SOFR plus a margin of 77.5 basis points. Depending on the Company’s credit rating, the margin ranges from 70 to 140 basis points.

The following is a summary of short-term bank borrowings under the Working Capital Credit Facility at December 31, 2025 and 2024 (dollars in thousands):

​	​	​	​	​	​	​	​
​	​ ​ ​	December 31,		​ ​ ​	December 31,
​	​	2025		​	2024
Total working capital credit facility	​	$	75,000	​	$	75,000	​
Borrowings outstanding at end of period	​		26,381	​		9,361	​
Weighted average daily borrowings during the period ended	​		18,403	​		15,102	​
Maximum daily borrowings during the period ended	​		62,622	​		62,077	​
Weighted average interest rate during the period ended	​		5.1	%		6.0	%
Interest rate at end of the period	​		4.4	%		5.2	%

​

F - 32

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

(g) The Company previously entered into forward starting interest rate swaps to hedge against interest rate risk on $150.0 million of the initial $300.0 million issued. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 4.27%.

(h) The Company previously entered into forward starting interest rate swaps and treasury lock to hedge against the interest rate risk of this debt. The all-in weighted average interest rate, inclusive of the impact of the forward starting swaps and treasury locks, was 3.32%.

(i) The Company entered into treasury lock agreements to hedge against interest rate risk on $250.0 million of the $600.0 million aggregate principal amount. The all-in weighted average interest rate, inclusive of the impact of the treasury locks, was 3.01%.

(j) The Company entered into and settled treasury lock arrangements to hedge against all interest rate risk of the debt. The all-in weighted average interest rate, inclusive of the impact of the treasury locks, was 4.95%.

(k) The Company previously entered into forward starting interest rate swaps to hedge against the interest rate risk of this debt. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 3.13%.

(l) The Operating Partnership is the guarantor of this debt.

The aggregate maturities, including amortizing principal payments on secured and unsecured debt, of total debt for the next ten years subsequent to December 31, 2025 are as follows (dollars in thousands):

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	Total		​ ​ ​	Total		​ ​ ​	Total
Year	​	Secured Debt		​	Unsecured Debt		​	Debt
2026	​	$	56,672	​	$	745,000	​	$	801,672
2027	​		6,939	​		326,380	​		333,319
2028	​		166,526	​		300,000	​		466,526
2029	​		315,811	​		650,000	​		965,811
2030	​		230,597	​		600,000	​		830,597
2031	​		160,930	​		600,000	​		760,930
2032	​		27,000	​		400,000	​		427,000
2033	​		—	​		650,000	​		650,000
2034	​		—	​		600,000	​		600,000
2035	​		—	​		—	​		—
Thereafter	​		—	​		—	​		—
Subtotal	​		964,475	​		4,871,380	​		5,835,855
Non-cash (a)	​		(3,295)	​		(11,191)	​		(14,486)
Total	​	$	961,180	​	$	4,860,189	​	$	5,821,369

(a)	Includes the unamortized balance of fair market value adjustments, premiums/discounts, and deferred financing costs. For the years ended December 31, 2025 and 2024, the Company amortized $5.0 million and $5.0 million, respectively, of deferred financing costs into Interest expense.

We were in compliance with the covenants of our debt instruments at December 31, 2025.

​

​

​

F - 33

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

8. INCOME/(LOSS) PER SHARE

The following table sets forth the computation of basic and diluted income/(loss) per share for the periods presented (dollars and shares in thousands, except per share data):

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
Numerator for income/(loss) per share:	​	​	​	​	​	​	​	​	​
Net income/(loss)	​	$	403,715	​	$	95,877	​	$	474,488
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership	​		(25,965)	​		(6,246)	​		(30,104)
Net (income)/loss attributable to noncontrolling interests	​		(46)	​		(46)	​		(31)
Net income/(loss) attributable to UDR, Inc.	​		377,704	​		89,585	​		444,353
Distributions to preferred stockholders — Series E (Convertible)	​		(4,839)	​		(4,835)	​		(4,848)
Income/(loss) attributable to common stockholders - basic and diluted	​	$	372,865	​	$	84,750	​	$	439,505
​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
Denominator for income/(loss) per share:	​		​	​		​	​		​
Weighted average common shares outstanding	​		330,833	​		329,670	​		329,136
Unvested restricted stock awards	​		(511)	​		(380)	​		(371)
Denominator for basic income/(loss) per share	​		330,322	​		329,290	​		328,765
Incremental shares issuable from assumed conversion of unvested LTIP Units, performance units, stock options and unvested restricted stock	​		731	​		826	​		339
Denominator for diluted income/(loss) per share	​		331,053	​		330,116	​		329,104
​	​	​	​	​	​	​	​	​	​
Income/(loss) per weighted average common share:	​		​	​		​	​		​
Basic	​	$	1.13	​	$	0.26	​	$	1.34
Diluted	​	$	1.13	​	$	0.26	​	$	1.34

​

Basic income/(loss) per common share is computed based upon the weighted average number of common shares outstanding. Diluted income/(loss) per common share is computed based upon the weighted average number of common shares outstanding plus the following items if dilutive in the current period: the common shares issuable from the assumed conversion of the OP Units and DownREIT Units, convertible preferred stock, stock options, unvested long-term incentive plan units (“LTIP Units”), performance units, unvested restricted stock and continuous equity program forward sales agreements. Only those instruments having a dilutive impact on our basic income/(loss) per share are included in diluted income/(loss) per share during the periods. For the years ended December 31, 2025, 2024, and 2023, the effect of the conversion of the OP Units, DownREIT Units and the Company’s Series E preferred stock was not dilutive and therefore not included in the above calculation.

In July 2021, the Company entered into an ATM sales agreement under which the Company may offer and sell up to 20.0 million shares of its common stock, from time to time, to or through its sales agents and may enter into separate forward sales agreements to or through its forward purchasers. Upon entering into the ATM sales agreement, the Company simultaneously terminated the sales agreement for its prior at-the-market equity offering program, which was entered into in July 2017. During the year ended December 31, 2025, the Company did not sell any shares of common stock through its ATM program. As of December 31, 2025, we had 14.0 million shares of common stock available for future issuance under the ATM program.

In connection with any forward sales agreement under the Company’s ATM program, the relevant forward purchasers will borrow from third parties and, through the relevant sales agent, acting in its role as forward seller, sell a number of shares of the Company’s common stock equal to the number of shares underlying the agreement. The Company does not initially receive any proceeds from any sale of borrowed shares by the forward seller.

​

The Company generally has the ability to determine the dates and method of settlement (i.e., gross physical settlement, net share settlement or cash settlement), subject to certain conditions and the right of the counterparty to accelerate settlement under certain circumstances. The Company currently expects to fully physically settle each forward sales agreement with the relevant forward purchaser on one or more dates specified by the Company on or prior to the maturity date of that particular forward sales agreement, in which case the Company expects to receive aggregate net cash proceeds at settlement equal to the number of shares underlying the particular forward sales agreement multiplied

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UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

by the relevant forward sale price. However, subject to certain exceptions, the Company may also elect, in its discretion, to cash settle or net share settle a particular forward sales agreement, in which case the Company may not receive any proceeds (in the case of cash settlement) or will not receive any proceeds (in the case of net share settlement), and the Company may owe cash (in the case of cash settlement) or shares of UDR common stock (in the case of net share settlement) to the relevant forward purchaser.

​

During the years ended December 31, 2025 and 2024, the Company did not enter into any forward purchase agreements under its continuous equity program.

​

During the year ended December 31, 2025, the Company repurchased 3.3 million shares of its common stock at an average price of $36.12 per share for total consideration of approximately $117.8 million under its share repurchase program. During the year ended December 31, 2024, the Company did not repurchase any shares of its common stock.

​

The following table sets forth the additional shares of common stock outstanding by equity instrument if converted to common stock for each of the years ended December 31, 2025, 2024, and 2023 (in thousands):

​	​	​	​	​	​	​
​	​	Year Ended December 31,
​	​	2025	​	2024	​	2023
OP/DownREIT Units	​ ​ ​	22,817	​ ​ ​	23,993	​ ​ ​	22,410
Convertible preferred stock		2,816		2,848		2,908
Unvested LTIP Units, performance units, stock options, and unvested restricted stock		731		826		339

​

​

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 Company’s authorized capital was 450.0 million shares of common stock and 50.0 million shares of preferred stock as of December 31, 2025.

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UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

The following table presents the changes in the Company’s 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 for conversion of noncontrolling interest of unitholders in the Operating Partnership		41		—		—
Adjustment for conversion of noncontrolling interest of unitholders in the DownREIT Partnership		342		—		—
Forfeiture of Series F shares		—		—		(318)
Balance at December 31, 2025		328,273		2,601		10,106

​

Common Stock

In July 2021, the Company entered into an ATM sales agreement under which the Company may offer and sell up to 20.0 million shares of its common stock, from time to time, to or through its sales agents and may enter into separate forward sales agreements to or through its forward purchasers. Upon entering into the ATM sales agreement, the Company simultaneously terminated the sales agreement for its prior at-the-market equity offering program, which was entered into in July 2017. As of December 31, 2025, 14.0 million shares were available for sale under the ATM program.

During the year ended December 31, 2025, the Company entered into the following equity transactions for our common stock:

	●	Repurchased 3.3 million shares of common stock at a weighted average price per share of $36.12, for total consideration of approximately $117.8 million.

	●	Issued 0.3 million shares, net of forfeitures, of common stock through the Company’s 1999 Long-Term Incentive Plan (the “LTIP”); and

	●	Issued 0.4 million shares of common stock upon redemption of OP Units and DownREIT Units, resulting in the forfeiture of 0.3 million Series F Preferred shares.

Distributions are subject to the approval of the Board of Directors and are dependent upon our strategy, financial condition and operating results. UDR’s common distributions for the years ended December 31, 2025, 2024, and 2023 totaled $1.72, $1.70, and $1.68 per share, respectively.

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UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

Preferred Stock

The Series E Cumulative Convertible Preferred Stock (“Series E”) has no stated par value and a liquidation preference of $16.61 per share. Subject to certain adjustments and conditions, each share of the Series E is convertible at any time at the holder’s option into one share of our common stock prior to a “Special Dividend” declared in 2008 (1.083 shares after the Special Dividend). The holders of the Series E are entitled to vote on an as-converted basis as a single class in combination with the holders of common stock at any meeting of our stockholders for the election of directors or for any other purpose on which the holders of common stock are entitled to vote. The Series E has no stated maturity and is not subject to any sinking fund or any mandatory redemption.

Distributions declared on the Series E for the years ended December 31, 2025, 2024, and 2023 were $1.86, $1.84, and $1.82 per share, respectively. The Series E is not listed on any exchange. At December 31, 2025 and 2024, a total of 2.6 million and 2.6 million, respectively, shares of the Series E were outstanding.

UDR is authorized to issue up to 20.0 million shares of the Series F Preferred Stock (“Series F”). The Series F may be purchased by certain holders of OP Units and DownREIT Units, at a purchase price of $0.0001 per share. OP/DownREIT Unitholders are entitled to subscribe for and purchase one share of UDR’s Series F for each OP/DownREIT Unit held. During the years ended December 31, 2025 and 2024, 0.3 million and 1.4 million of the Series F shares were forfeited upon the conversion of OP Units and DownREIT Units into Company common stock, respectively.

At December 31, 2025 and 2024, a total of 10.1 million and 10.4 million shares, respectively, of the Series F were outstanding with an aggregate purchase value of $1,010 and $1,042, respectively. Holders of the Series F are entitled to one vote for each share of the Series F they hold, voting together with the holders of our common stock, on each matter submitted to a vote of security holders at a meeting of our stockholders. The Series F does not entitle its holders to dividends or any other rights, privileges or preferences.

Distribution Reinvestment and Stock Purchase Plan

UDR’s Distribution Reinvestment and Stock Purchase Plan allows common and preferred stockholders the opportunity to purchase, through the reinvestment of cash dividends and by making additional cash payments, additional shares of UDR’s common stock. During the year ended December 31, 2025, all shares issued with respect to the plan were acquired through the open market.

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 individual’s 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 December 31, 2025, there were 12.5 million common shares available for issuance under the LTIP.

The LTIP contains double trigger change of control provisions allowing for the vesting of an award when certain conditions are met upon qualifying events such as a merger where UDR is not the surviving entity. Upon the

F - 37

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

death or disability of an award recipient, all outstanding instruments will vest and all restrictions will lapse. The LTIP specifies that in the event of a capital transaction, which includes but is not limited to stock dividends, stock splits, extraordinary cash dividends and spin-offs, the number of shares available for grant in totality or to a single individual is to be adjusted proportionately. The LTIP specifies that when a capital transaction occurs that would dilute the holder of the stock award, prior grants are to be adjusted such that the recipient is no worse as a result of the capital transaction.

A summary of UDR’s Performance Units, LTIP Units, restricted stock and option activities during the years ended December 31, 2025 and 2024 are as follows (shares in thousands):

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Unvested Performance Units Outstanding				​	Performance Units Exercisable				​	Unvested Stock Options Outstanding				​	Stock Options Exercisable				​	LTIP Units				​	Restricted Stock
​	​	​	​		​	​	​	​		​	​	​	​		​	​	​	​		​	​	​	​		​	​	​	Weighted
​	​	​	Weighted		​	​	​	Weighted		​	​	​	Weighted		​	​	​	Weighted		​	​	​	Weighted		​	​	​	Average Fair
​	​	​	Average		​	​	​	Average		​	​	​	Average		​	​	​	Average		​	​	​	Average Fair		​	​	​	Value Per
​	Number of	​	Exercise		​	Number of	​	Exercise		​	Number of	​	Exercise		​	Number of	​	Exercise		​	Number of	​	Value Per		​	Number	​	Restricted
​	Units	​	Price		​	Units	​	Price		​	Options	​	Price		​	Options	​	Price		​	LTIP Units	​	LTIP Unit		​	of shares	​	Stock
Balance, December 31, 2023	3,717	​	$	41.25	​	2,278	​	$	37.53	​	1,339	​	$	44.99	​	19	​	$	59.90	​	312	​	$	50.51	​	365	​	$	44.53
Granted	494	​		38.79	​	—	​		—	​	50	​		38.64	​	—	​		—	​	678	​		38.70	​	190	​		38.66
Exercised	—	​		—	​	—	​		—	​	—	​		—	​	—	​		—	​	—	​		—	​	—	​		—
Vested	(1,652)	​		38.04	​	1,652	​		38.04	​	—	​		—	​	—	​		—	​	(209)	​		43.55	​	(163)	​		44.11
Forfeited	(745)	​		37.50	​	—	​		—	​	(48)	​		40.49	​	—	​		—	​	(115)	​		41.68	​	(83)	​		41.21
Balance, December 31, 2024	1,814	​	$	41.17	​	3,930	​	$	37.74	​	1,341	​	$	44.91	​	19	​	$	59.90	​	666	​	$	42.12	​	309	​	$	42.09
Granted	61	​		41.70	​	—	​		—	​	23	​		42.53	​	—	​		—	​	554	​		41.16	​	395	​		41.92
Exercised	—	​		—	​	—	​		—	​	—	​		—	​	—	​		—	​	—	​		—	​	—	​		—
Vested	(288)	​		39.67	​	288	​		39.67	​	(22)	​		38.64	​	22	​		38.64	​	(459)	​		41.67	​	(140)	​		43.86
Forfeited	(825)	​		52.51	​	—	​		—	​	(390)	​		44.66	​	—	​		—	​	(208)	​		45.19	​	(51)	​		43.27
Balance, December 31, 2025	762	​	$	38.76	​	4,218	​	$	37.87	​	952	​	$	45.10	​	41	​	$	48.49	​	553	​	$	40.45	​	513	​	$	41.32

​

As of December 31, 2025, the Company had granted 7.4 million shares of restricted stock, 3.9 million LTIP Units, 5.0 million Performance Units, and 1.0 million stock options under the LTIP.

Stock Option Awards

UDR has granted stock options to our employees and Company directors. Subject to certain conditions, each stock option is exercisable into one share of UDR common stock.

The total remaining compensation cost on unvested stock options was $1.0 million as of December 31, 2025.

During the year ended December 31, 2025, no stock options were exercised.

The weighted average remaining contractual life on all stock options outstanding as of December 31, 2025 is 6.7 years and such options have a weighted average exercise price of $45.10.

During the years ended December 31, 2025, 2024 and 2023, we recognized less than $0.1 million, $0.9 million and $0.6 million, respectively, of net compensation expense related to outstanding stock options.

Restricted Stock Awards

Restricted stock awards are granted to our employees and Company directors. The restricted stock awards are valued based upon the closing sales price of UDR common stock on the date of grant. Compensation expense is recorded

F - 38

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

under either the straight-line method or graded vesting method over the vesting period, which is generally one to four years. Restricted stock awards earn dividends payable in cash or dividend reinvestment shares. Some of the restricted stock grants are based on the Company’s performance and are subject to adjustment during the initial one to three year performance periods. During the years ended December 31, 2025, 2024, and 2023, we recognized $11.4 million, $5.5 million, and $6.4 million of compensation expense, net of capitalization, related to the amortization of restricted stock awards, respectively. The total remaining compensation cost on unvested restricted stock awards was $8.3 million and had a weighted average remaining contractual life of 1.8 years as of December 31, 2025.

Unit Awards

Unit awards are granted to our employees and Company directors. Compensation expense is recorded under either the straight-line method or graded vesting method over the vesting period, which is generally one to four years. Unit awards earn distributions payable in cash or distribution reinvestment units. Some of the Unit awards are based on the Company’s performance and are subject to adjustment during the initial one to three year performance periods. During the years ended December 31, 2025, 2024, and 2023, we recognized $11.3 million, $20.3 million and $6.2 million, respectively, of compensation expense, net of capitalization, related to the amortization of the awards. The total remaining compensation cost on Unit awards was $7.7 million and had a weighted average remaining contractual life of 1.9 years as of December 31, 2025.

Performance Unit Awards

UDR has granted Performance Units to our employees and Company directors. Subject to certain conditions, each Performance Unit is exercisable into one Operating Partnership common unit. Compensation expense is recorded under either the straight-line method or graded vesting method over the vesting period, which is generally one to four years. Performance Unit awards earn distributions payable in cash equivalent to 2% of regular distributions paid on OP Units. Some of the Performance Unit awards are based on the Company’s performance and are subject to adjustment during the initial one to three year performance periods.

The total remaining compensation cost on unvested Performance Units was $0.1 million as of December 31, 2025.

During the year ended December 31, 2025, no Performance Units were exercised.

The weighted average remaining contractual life on all Performance Units outstanding as of December 31, 2025 is 6.1 years and such Performance Units have a weighted average exercise price of $38.76.

During the years ended December 31, 2025, 2024 and 2023, we recognized $3.9 million, $5.9 million and $19.8 million, respectively, of net compensation expense related to outstanding Performance Units.

Short-Term Incentive Compensation

In January 2025, certain officers of the Company were awarded either a restricted stock grant, an STI Unit grant, or an STI Performance Unit grant, or a combination of all three, under the 2025 Long-Term Incentive Program (“2025 LTI”). All three of the awards represent short-term incentive compensation for the officers. The restricted stock award was valued for compensation expense purposes based upon the closing sales price of UDR common stock on the date of grant in accordance with ASC 718, Compensation - Stock Compensation (“ASC 718”), or $42.53 per share. The STI Unit award was valued for compensation expense purposes based upon the closing sales price of UDR common stock on the date of grant in accordance with ASC 718, or $42.53 per unit, inclusive of a discount due to uncertainty associated with the STI Unit reaching parity with the value of a share of UDR common stock. The STI Performance Unit award was valued for compensation expense purposes on the date of grant in accordance with ASC 718 as determined by the lattice-binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 30.0%, an expected life of 5.5 years, an annualized risk-free rate of 4.5%, and an annual dividend yield of 3.6%, or $9.14 per unit, inclusive of a discount due to uncertainty associated with the STI Performance Unit reaching parity with the value of a share of UDR common stock. The restricted stock awards, STI Unit awards, and STI Performance Unit awards are primarily based on the Company’s performance and are subject to adjustment based on performance against predefined metrics during the one-year performance period.

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UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

In January 2024, certain officers of the Company were awarded either a restricted stock grant, an STI Unit grant, or an STI Performance Unit grant, or a combination of all three, under the 2024 Long-Term Incentive Program (“2024 LTI”). All three of the awards represent short-term incentive compensation for the officers. The restricted stock award was valued for compensation expense purposes based upon the closing sales price of UDR common stock on the date of grant in accordance with ASC 718, Compensation - Stock Compensation (“ASC 718”), or $38.64 per share. The STI Unit award was valued for compensation expense purposes based upon the closing sales price of UDR common stock on the date of grant in accordance with ASC 718, or $38.64 per unit, inclusive of a discount due to uncertainty associated with the STI Unit reaching parity with the value of a share of UDR common stock. The STI Performance Unit award was valued for compensation expense purposes on the date of grant in accordance with ASC 718 as determined by the lattice-binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 30.0%, an expected life of 5.5 years, an annualized risk-free rate of 4.04%, and an annual dividend yield of 3.5%, or $8.16 per unit, inclusive of a discount due to uncertainty associated with the STI Performance Unit reaching parity with the value of a share of UDR common stock. The restricted stock awards, STI Unit awards, and STI Performance Unit awards are primarily based on the Company’s performance and are subject to adjustment based on performance against predefined metrics during the one-year performance period.

In January 2023, certain officers of the Company were awarded either a restricted stock grant, an STI Unit grant, or an STI Performance Unit grant, or a combination of all three, under the 2023 Long-Term Incentive Program (“2023 LTI”). All three of the awards represent short-term incentive compensation for the officers. The restricted stock award was valued for compensation expense purposes based upon the closing sales price of UDR common stock on the date of grant in accordance with ASC 718, or $38.59 per share. The STI Unit award was valued for compensation expense purposes based upon the closing sales price of UDR common stock on the date of grant in accordance with ASC 718, or $38.59 per unit, inclusive of a discount due to uncertainty associated with the STI Unit reaching parity with the value of a share of UDR common stock. The STI Performance Unit award was valued for compensation expense purposes on the date of grant in accordance with ASC 718 as determined by the lattice-binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 29.0%, an expected life of 5.5 years, an annualized risk-free rate of 4.09%, and an annual dividend yield of 3.3%, or $7.86 per unit, inclusive of a discount due to uncertainty associated with the STI Performance Unit reaching parity with the value of a share of UDR common stock. The restricted stock awards, STI Unit awards, and STI Performance Unit awards are primarily based on the Company’s performance and are subject to adjustment based on performance against predefined metrics during the one-year performance period.

Long-Term Incentive Compensation

In January 2025, certain officers of the Company were awarded either a restricted stock grant, an LTIP Unit grant, or an LTIP Performance Unit grant, or a combination of all three, under the 2025 LTI. For all three restricted stock grants, LTIP Unit grants and Performance Unit grants, thirty percent of the 2025 LTI award is based upon FFO as Adjusted over a one-year period and will vest fifty percent on the one-year anniversary and fifty percent on the two-year anniversary. Fifteen percent of the 2025 LTI award is based upon relative FFO as Adjusted over a three-year period and will vest 100% at the end of the three-year performance period. The remaining fifty-five percent of the 2025 LTI award is based on Total Shareholder Return (“TSR”) as measured relative to comparable apartment REITs over a three-year period and as measured relative to the Nareit Equity REITs Total Return Index over a three-year period whereby all three will vest 100% at the end of the three-year performance periods. The portion of the restricted stock grant based upon FFO as Adjusted was valued for compensation expense purposes based upon the closing sales price of UDR common stock on the date of grant or $42.53 per share. Because LTIP Units are granted at the maximum potential payout and there is uncertainty associated with an LTIP Unit reaching parity with the value of a share of UDR common stock, the portion of the LTIP Unit grant based upon the one-year FFO as Adjusted was valued for compensation expense purposes at $19.45 per unit on the grant date, inclusive of an 8.6% discount, and the portion of the LTIP Unit grant based upon the three-year FFO as Adjusted was valued for compensation expense purposes at $20.41 per unit on the grant date, inclusive of a 4.0% discount. Because LTIP Performance Units are granted at the maximum potential payout and there is uncertainty associated with an LTIP Performance Unit reaching parity with the value of a share of UDR common stock, the portion of the LTIP Performance Unit grant based upon the one-year FFO as Adjusted was valued for compensation expense purposes at $4.65 per unit on the grant date, inclusive of an 8.6% discount, a volatility factor of 29.0%, an expected life of 5.75 years, an annualized risk-free rate of 4.5%, and an annual dividend yield of 3.6%, and the portion of the LTIP Performance Unit grant based upon the three-year FFO as Adjusted was valued for

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UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

compensation expense purposes at $4.93 per unit on the grant date, inclusive of a 4.0% discount, a volatility factor of 28.0%, an expected life of 6.5 years, an annualized risk-free rate of 4.5%, and an annual dividend yield of 3.6%. The portion of the restricted stock grant based upon relative TSR was valued for compensation expense purposes at $47.00 per share for the comparable apartment REITs component and $45.81 per share for the Nareit Equity REITs Total Return Index component on the grant date as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 24.0%. The portion of the LTIP Unit grant based upon relative TSR was valued for compensation expense purposes at $22.79 per unit, inclusive of a 4.0% discount, for the comparable apartment REITs component and $22.22 per unit, inclusive of a 4.0% discount, for the Nareit Equity REITs Total Return Index component on the grant date as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 24.0%. The portion of the LTIP Performance Unit grant based upon relative TSR was valued for compensation expense purposes at $6.18 per unit, inclusive of a 4.0% discount, for the comparable apartment REITs component and $6.37 per unit, inclusive of a 4.0% discount, for the Nareit Equity REITs Total Return Index component on the grant date as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 32.0%, an expected life of 6.5 years, an annualized risk-free rate of 4.5%, and an annual dividend yield of 3.2%.

In January 2024, certain officers of the Company were awarded either a restricted stock grant, an LTIP Unit grant, or an LTIP Performance Unit grant, or a combination of all three, under the 2024 LTI. For all three restricted stock grants, LTIP Unit grants and Performance Unit grants, thirty percent of the 2024 LTI award is based upon FFO as Adjusted over a one-year period and will vest fifty percent on the one-year anniversary and fifty percent on the two-year anniversary. Fifteen percent of the 2024 LTI award is based upon relative FFO as Adjusted over a three-year period and will vest 100% at the end of the three-year performance period. The remaining fifty-five percent of the 2024 LTI award is based on Total Shareholder Return (“TSR”) as measured relative to comparable apartment REITs over a three-year period and as measured relative to the Nareit Equity REITs Total Return Index over a three-year period whereby all three will vest 100% at the end of the three-year performance periods. The portion of the restricted stock grant based upon FFO as Adjusted was valued for compensation expense purposes based upon the closing sales price of UDR common stock on the date of grant or $38.64 per share. Because LTIP Units are granted at the maximum potential payout and there is uncertainty associated with an LTIP Unit reaching parity with the value of a share of UDR common stock, the portion of the LTIP Unit grant based upon the one-year FFO as Adjusted was valued for compensation expense purposes at $17.72 per unit on the grant date, inclusive of an 8.3% discount, and the portion of the LTIP Unit grant based upon the three-year FFO as Adjusted was valued for compensation expense purposes at $18.57 per unit on the grant date, inclusive of a 3.9% discount. Because LTIP Performance Units are granted at the maximum potential payout and there is uncertainty associated with an LTIP Performance Unit reaching parity with the value of a share of UDR common stock, the portion of the LTIP Performance Unit grant based upon the one-year FFO as Adjusted was valued for compensation expense purposes at $4.22 per unit on the grant date, inclusive of an 8.3% discount, a volatility factor of 30.0%, an expected life of 5.5 years, an annualized risk-free rate of 4.04%, and an annual dividend yield of 3.5%, and the portion of the LTIP Unit grant based upon the three-year FFO as Adjusted was valued for compensation expense purposes at $4.37 per unit on the grant date, inclusive of a 3.9% discount, a volatility factor of 28.0%, an expected life of 6.5 years, an annualized risk-free rate of 4.03%, and an annual dividend yield of 3.5%. The portion of the restricted stock grant based upon relative TSR was valued for compensation expense purposes at $47.21 per share for the comparable apartment REITs component and $44.86 per share for the Nareit Equity REITs Total Return Index component on the grant date as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 24.0%. The portion of the LTIP Unit grant based upon relative TSR was valued for compensation expense purposes at $22.86 per unit, inclusive of a 3.9% discount, for the comparable apartment REITs component and $21.74 per unit, inclusive of a 3.9% discount, for the Nareit Equity REITs Total Return Index component on the grant date as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 24.0%. The portion of the LTIP Performance Unit grant based upon relative TSR was valued for compensation expense purposes at $5.96 per unit, inclusive of a 3.9% discount, for the comparable apartment REITs component and $5.93 per unit, inclusive of a 3.9% discount, for the Nareit Equity REITs Total Return Index component on the grant date as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 31.0%, an expected life of 6.5 years, an annualized risk-free rate of 4.03%, and an annual dividend yield of 3.3%.

In January 2023, certain officers of the Company were awarded either a restricted stock grant, an LTIP Unit grant, or an LTIP Performance Unit grant, or a combination of all three, under the 2023 LTI. For all three restricted stock

F - 41

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

grants, LTIP Unit grants and Performance Unit grants, thirty percent of the 2023 LTI award is based upon FFO as Adjusted over a one-year period and will vest fifty percent on the one-year anniversary and fifty percent on the two-year anniversary. Fifteen percent of the 2023 LTI award is based upon relative FFO as Adjusted over a three-year period and will vest 100% at the end of the three-year performance period. The remaining fifty-five percent of the 2023 LTI award is based on Total Shareholder Return (“TSR”) as measured relative to comparable apartment REITs over a three-year period and as measured relative to the Nareit Equity REITs Total Return Index over a three-year period whereby all three will vest 100% at the end of the three-year performance periods. The portion of the restricted stock grant based upon FFO as Adjusted was valued for compensation expense purposes based upon the closing sales price of UDR common stock on the date of grant or $38.59 per share. Because LTIP Units are granted at the maximum potential payout and there is uncertainty associated with an LTIP Unit reaching parity with the value of a share of UDR common stock, the portion of the LTIP Unit grant based upon the one-year FFO as Adjusted was valued for compensation expense purposes at $17.58 per unit on the grant date, inclusive of an 8.9% discount, and the portion of the LTIP Unit grant based upon the three-year FFO as Adjusted was valued for compensation expense purposes at $18.45 per unit on the grant date, inclusive of a 4.4% discount. Because LTIP Performance Units are granted at the maximum potential payout and there is uncertainty associated with an LTIP Performance Unit reaching parity with the value of a share of UDR common stock, the portion of the LTIP Performance Unit grant based upon the one-year FFO as Adjusted was valued for compensation expense purposes at $4.12 per unit on the grant date, inclusive of an 8.9% discount, a volatility factor of 29.0%, an expected life of 5.5 years, an annualized risk-free rate of 4.09%, and an annual dividend yield of 3.3%, and the portion of the LTIP Unit grant based upon the three-year FFO as Adjusted was valued for compensation expense purposes at $4.29 per unit on the grant date, inclusive of a 4.4% discount, a volatility factor of 27.0%, an expected life of 6.5 years, an annualized risk-free rate of 4.08%, and an annual dividend yield of 3.3%. The portion of the restricted stock grant based upon relative TSR was valued for compensation expense purposes at $44.85 per share for the comparable apartment REITs component and $43.30 per share for the Nareit Equity REITs Total Return Index component on the grant date as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 36.0%. The portion of the LTIP Unit grant based upon relative TSR was valued for compensation expense purposes at $21.62 per unit, inclusive of a 4.4% discount, for the comparable apartment REITs component and $20.89 per unit, inclusive of a 4.4% discount, for the Nareit Equity REITs Total Return Index component on the grant date as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 36.0%. The portion of the LTIP Performance Unit grant based upon relative TSR was valued for compensation expense purposes at $6.02 per unit, inclusive of a 4.4% discount, for the comparable apartment REITs component and $5.86 per unit, inclusive of a 4.4% discount, for the Nareit Equity REITs Total Return Index component on the grant date as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 16.0%, an expected life of 6.5 years, an annualized risk-free rate of 4.08%, and an annual dividend yield of 3.2%.

Profit Sharing Plan

Our profit sharing plan (the “Plan”) is a defined contribution plan covering all eligible full-time employees. Under the Plan, UDR makes discretionary profit sharing and matching contributions to the Plan as determined by the Compensation Committee of the Board of Directors. Aggregate provisions for contributions, both matching and discretionary, which are included in General and administrative on UDR’s Consolidated Statements of Operations for the years ended December 31, 2025, 2024, and 2023, were $1.2 million, $1.0 million, and $1.1 million, respectively.

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 stockholder’s basis in their common shares. To the extent that a distribution exceeds both current and accumulated earnings and profits and the stockholder’s basis in the common shares, it generally will be treated as a gain

F - 42

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

from the sale or exchange of that stockholder’s 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 for the years ended December 31, 2025, 2024, and 2023 (dollars in thousands):

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​	​	2025		​	2024		​	2023
Income tax (benefit)/provision	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​
Current		​	​		​	​		​	​
Federal	​	$	210	​	$	314	​	$	69
State	​		940	​		1,192	​		2,036
Total current	​		1,150	​		1,506	​		2,105
Deferred	​	​	​	​	​	​	​	​	​
Federal	​		(252)	​		(103)	​		26
State	​		(15)	​		(476)	​		23
Investment tax credit	​	​	(48)	​	​	(48)	​	​	(48)
Total deferred	​		(315)	​		(627)	​		1
Total income tax (benefit)/provision	​	$	835	​	$	879	​	$	2,106

​

Deferred income taxes are provided for the change in temporary differences between the basis of certain assets and liabilities for financial reporting purposes and income tax reporting purposes. The expected future tax rates are based upon enacted tax laws. The components of our TRS deferred tax assets and liabilities are recorded in Accounts payable, accrued expenses and other liabilities on the Consolidated Balance Sheets, and are as follows for the years ended December 31, 2025, 2024, and 2023 (dollars in thousands):

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​	​	2025		​	2024		​	2023
Deferred tax assets:	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​
Federal and state tax attributes	​	$	31	​	$	55	​	$	28
Other	​		401	​		142	​		153
Total deferred tax assets	​		432	​		197	​		181
Valuation allowance	​		(27)	​		(27)	​		(27)
Net deferred tax assets	​		405	​		170	​		154
Deferred tax liabilities:	​		​	​		​	​		​
Book/tax depreciation and basis	​	​	(787)	​	​	(878)	​	​	(881)
Other	​		(132)	​		(73)	​		(76)
Total deferred tax liabilities	​		(919)	​		(951)	​		(957)
Net deferred tax assets/(liabilities)	​	$	(514)	​	$	(781)	​	$	(803)

​

F - 43

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

Income tax provision/(benefit), net from our TRS differed from the amounts computed by applying the U.S. statutory rate of 21% to pretax income/(loss) for the years ended December 31, 2025, 2024, and 2023 as follows (dollars in thousands):

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​	​	2025		​	2024		​	2023
Income tax provision/(benefit)	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​
U.S. federal income tax provision/(benefit)	​	$	(40)	​	$	251	​	$	105
State income tax provision	​		923	​		1,233	​		2,054
Solar credit amortization	​	​	(48)	​	​	(48)	​	​	(48)
ITC basis adjustment	​		—	​		(557)	​		—
Valuation allowance	​		—	​		—	​		(5)
Total income tax provision/(benefit)	​	$	835	​	$	879	​	$	2,106

​

The Company’s Tax benefit/(provision), net was $(0.8) million, $(0.9) million and $(2.1) million for the years ended December 31, 2025, 2024 and 2023, respectively. The decrease of $0.1 million was primarily attributable to a decrease in state taxes for the tax year ended December 31, 2025. GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The financial statements reflect expected future tax consequences of income tax positions presuming the taxing authorities’ full knowledge of the tax position and all relevant facts, but without considering time values. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition.

The Company evaluates our tax position using a two-step process. First, we determine whether a tax position is more likely than not (greater than 50 percent probability) to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Company will then determine the amount of benefit to recognize and record the amount of the benefit that is more likely than not to be realized upon ultimate settlement. As of December 31, 2025 and 2024, UDR has no material unrecognized income tax benefits/(provisions), net.

The Company files income tax returns in federal and various state and local jurisdictions. The tax years 2022 through 2025 remain open to examination by the major taxing jurisdictions to which the Company is subject.

12. NONCONTROLLING INTERESTS

Redeemable Noncontrolling Interests in the Operating Partnership and DownREIT Partnership

Interests in the Operating Partnership and the DownREIT Partnership held by limited partners are represented by OP Units and DownREIT Units, respectively. The income is allocated to holders of OP Units/DownREIT Units based upon net income attributable to common stockholders and the weighted average number of OP Units/DownREIT Units outstanding to total common shares plus OP Units/DownREIT Units outstanding during the period. Capital contributions, distributions, and profits and losses are allocated to noncontrolling interests in accordance with the terms of the partnership agreements of the Operating Partnership and the DownREIT Partnership.

Limited partners of the Operating Partnership and the DownREIT Partnership have the right to require such partnership to redeem all or a portion of the OP Units/DownREIT Units held by the limited partner at a redemption price equal to and in the form of the Cash Amount (as defined in the partnership agreement of the Operating Partnership or the DownREIT Partnership, as applicable), provided that such OP Units/DownREIT Units have been outstanding for at least one year, subject to certain exceptions. UDR, as the general partner of the Operating Partnership and the DownREIT Partnership may, in its sole discretion, purchase the OP Units/DownREIT Units by paying to the limited partner either the Cash Amount or the REIT Share Amount (generally one share of common stock of the Company for each OP Unit/DownREIT Unit), as defined in the partnership agreement of the Operating Partnership or the DownREIT Partnership, as applicable. Accordingly, the Company records the OP Units/DownREIT Units outside of permanent equity and reports the OP Units/DownREIT Units at their redemption value using the Company’s stock price at each balance sheet date.

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UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

The following table sets forth redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership for the years ended December 31, 2025 and 2024 (dollars in thousands):

​	​	​	​	​	​	​
​	​	Year Ended December 31,
​	​	2025		​	2024
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership at beginning of year	​ ​ ​	$	1,017,355	​ ​ ​	$	961,087
Mark-to-market adjustment to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership	​		(134,688)	​		148,362
Conversion of OP Units/DownREIT Units to Common Stock or Cash	​		(25,257)	​		(73,196)
Net income/(loss) attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership	​		25,965	​		6,246
Distributions to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership	​		(41,161)	​		(52,250)
Redeemable Long-Term and Short-Term Incentive Plan Units	​	​	17,905	​	​	27,175
Allocation of other comprehensive income/(loss)	​		(153)	​		(69)
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership at end of year	​	$	859,966	​	$	1,017,355

​

Noncontrolling Interests

Noncontrolling interests represent interests of unrelated partners in certain consolidated affiliates, and are presented as part of equity on the Consolidated Balance Sheets since these interests are not redeemable. Net (income)/loss attributable to noncontrolling interests was less than $(0.1) million, less than $(0.1) million, and less than $(0.1) million during the years ended December 31, 2025, 2024, and 2023, respectively.

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.

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UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

The estimated fair values of the Company’s 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		​	​	​	​	Markets		​	Significant		​	​	​
​	​	Financial		​	Fair Value		​	for Identical		​	Other		​	Significant
​	​	Position at		​	Estimate at		​	Assets or		​	Observable		​	Unobservable
​	​	December 31,		​	December 31,		​	Liabilities		​	Inputs		​	Inputs
​	​	2025 (a)		​	2025		​	(Level 1)		​	(Level 2)		​	(Level 3)
Description:	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​
Notes receivable, net (b)	​	$	149,979	​	$	144,160	​	$	—	​	$	—	​	$	144,160
Equity securities (c)	​	​	1,479	​	​	1,479	​	​	1,479	​	​	—	​	​	—
Derivatives - Interest rate contracts (d)	​		272	​		272	​		—	​		272	​		—
Total assets	​	$	151,730	​	$	145,911	​	$	1,479	​	$	272	​	$	144,160
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Secured debt instruments - fixed rate: (e)	​		​	​		​	​		​	​		​	​		​
Mortgage notes payable	​	$	937,007	​	$	895,881	​	$	—	​	$	—	​	$	895,881
Secured debt instruments - variable rate: (e)	​		​	​		​	​		​	​		​	​		​
Tax-exempt secured notes payable	​		27,000	​		27,000	​		—	​		—	​		27,000
Unsecured debt instruments: (e)	​		​	​		​	​		​	​		​	​		​
Working capital credit facility	​	​	26,381	​	​	26,381	​	​	—	​	​	—	​	​	26,381
Commercial paper program	​	​	445,000	​	​	445,000	​	​	—	​	​	—	​	​	445,000
Unsecured notes	​	​	4,406,646	​	​	4,092,949	​	​	—	​	​	—	​	​	4,092,949
Total liabilities	​	$	5,842,034	​	$	5,487,211	​	$	—	​	$	—	​	$	5,487,211
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (f)	​	$	859,966	​	$	859,966	​	$	—	​	$	859,966	​	$	—

​

F - 46

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	Fair Value at December 31, 2024, Using
​	​	Total		​	​		​	Quoted		​	​		​	​
​	​	Carrying		​	​		​	Prices in		​	​		​	​
​	​	Amount in		​	​		​	Active		​	​		​	​
​	​	Statement of		​	​		​	Markets		​	Significant		​	​
​	​	Financial		​	Fair Value		​	for Identical		​	Other		​	Significant
​	​	Position at		​	Estimate at		​	Assets or		​	Observable		​	Unobservable
​	​	December 31,		​	December 31,		​	Liabilities		​	Inputs		​	Inputs
​		2024 (a)		​	2024		​	(Level 1)		​	(Level 2)		​	(Level 3)
Description:	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​
Notes receivable, net (b)	​	$	247,849	​	$	243,546	​	$	—	​	$	—	​	$	243,546
Equity securities (c)	​	​	1,281	​	​	1,281	​	​	1,281	​	​	—	​	​	—
Derivatives - Interest rate contracts (d)	​		3,227	​		3,227	​		—	​		3,227	​		—
Total assets	​	$	252,357	​	$	248,054	​	$	1,281	​	$	3,227	​	$	243,546
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Secured debt instruments - fixed rate: (e)	​		​	​		​	​		​	​		​	​		​
Mortgage notes payable	​	$	1,115,999	​	$	1,039,482	​	$	—	​	$	—	​	$	1,039,482
Secured debt instruments - variable rate: (e)	​		​	​		​	​		​	​		​	​		​
Tax-exempt secured notes payable	​		27,000	​		27,000	​		—	​		—	​		27,000
Unsecured debt instruments: (e)	​		​	​		​	​		​	​		​	​		​
Working capital credit facility	​	​	9,361	​	​	9,361	​	​	—	​	​	—	​	​	9,361
Commercial paper program	​	​	289,900	​	​	289,900	​	​	—	​	​	—	​	​	289,900
Unsecured notes	​	​	4,408,376	​	​	3,897,187	​	​	—	​	​	—	​	​	3,897,187
Total liabilities	​	$	5,850,636	​	$	5,262,930	​	$	—	​	$	—	​	$	5,262,930
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (f)	​	$	1,017,355	​	$	1,017,355	​	$	—	​	$	1,017,355	​	$	—

(a)	Certain balances include fair market value adjustments and exclude deferred financing costs.

(b)	See Note 2, Significant Accounting Policies. Note receivables, net includes any accrued and unpaid interest, as applicable, and allowance for credit losses.

(c)	The Company holds a direct investment in a publicly traded real estate technology company, SmartRent. The investment is valued at the market price on December 31, 2025 and 2024. The Company currently classifies the investment as Level 1 in the fair value hierarchy.

(d)	See Note 14, Derivatives and Hedging Activity.

(e)	See Note 7, Secured and Unsecured Debt, Net.

(f)	See Note 12, Noncontrolling Interests.

There were no transfers into or out of any of the levels of the fair value hierarchy during the year ended December 31, 2025 and 2024.

Financial Instruments Carried at Fair Value

The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair values of interest rate swaps and caps are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities.

F - 47

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of December 31, 2025 and 2024, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. In conjunction with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership have a redemption feature and are marked to their redemption value. The redemption value is based on the fair value of the Company’s common stock at the redemption date, and therefore, is calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership are classified as Level 2.

Financial Instruments Not Carried at Fair Value

At December 31, 2025, the fair values of cash and cash equivalents, restricted cash, accounts receivable, prepaids, real estate taxes payable, accrued interest payable, security deposits and prepaid rent, distributions payable and accounts payable approximated their carrying values because of the short term nature of these instruments. The estimated fair values of other financial instruments, which includes notes receivable and debt instruments, are classified in Level 3 of the fair value hierarchy due to the significant unobservable inputs that are utilized in their respective valuations.

14. DERIVATIVES AND HEDGING ACTIVITY

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium.

F - 48

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in Accumulated other comprehensive income/(loss), net on the Consolidated Balance Sheets and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the years ended December 31, 2025, 2024, and 2023, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt.

Amounts reported in Accumulated other comprehensive income/(loss), net on the Consolidated Balance Sheets related to derivatives that will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. Through December 31, 2026, the Company estimates that an additional $0.1 million will be reclassified as a decrease to Interest expense.

As of December 31, 2025, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands):

​	​	​	​	​	​
​	​ ​ ​	Number of	​ ​ ​	​
Product	​	Instruments	​	Notional
Interest rate swaps and caps	​	4	​	$	183,977

​

Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of December 31, 2025, no derivatives not designated as hedges were held by the Company.

Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2025 and 2024 (dollars in thousands):

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Asset Derivatives					​	Liability Derivatives
​	​	(included in Other assets**)**					​	(included in Other liabilities**)**
​	​	Fair Value at:					​	Fair Value at:
​	​	December 31,		​	December 31,		​	December 31,		​	December 31,
​	​	2025		​	2024		​	2025		​	2024
Derivatives designated as hedging instruments:	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​
Interest rate products	​	$	272	​	$	3,227	​	$	—	​	$	—

​

Tabular Disclosure of the Effect of Derivative Instruments on the Consolidated Statements of Operations

The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the years ended December 31, 2025, 2024, and 2023 (dollars in thousands):

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	Gain/(Loss) Recognized in
​	​	​								​	Gain/(Loss) Reclassified								​	Interest expense
​	​	Unrealized holding gain/(loss)								​	from Accumulated OCI into								​	(Amount Excluded from
​	​	Recognized in OCI								​	Interest expense								​	Effectiveness Testing)
Derivatives in Cash Flow Hedging Relationships	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023		​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023		​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest rate products	​	$	715	​	$	5,988	​	$	3,872	​	$	2,846	​	$	7,333	​	$	7,533	​	$	—	​	$	—	​	$	—

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended
​	​	December 31,
​	​	2025		​	2024		​	2023
Total amount of Interest expense presented on the Consolidated Statements of Operations	​	$	196,619	​	$	195,712	​	$	180,866

​

F - 49

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

Credit-risk-related Contingent Features

The Company has agreements with its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness.

The Company has certain agreements with some of its derivative counterparties that contain a provision where, in the event of default by the Company or the counterparty, the right of setoff may be exercised. Any amount payable to one party by the other party may be reduced by its setoff against any amounts payable by the other party. Events that give rise to default by either party may include, but are not limited to, the failure to pay or deliver payment under the derivative agreement, the failure to comply with or perform under the derivative agreement, bankruptcy, a merger without assumption of the derivative agreement, or in a merger, a surviving entity’s creditworthiness is materially weaker than the original party to the derivative agreement.

Tabular Disclosure of Offsetting Derivatives

The Company has elected not to offset derivative positions on the consolidated financial statements. The table below present the effect on its financial position had the Company made the election to offset its derivative positions as of December 31, 2025 and 2024 (dollars in thousands):

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	​	​	​ ​ ​	Gross		​ ​ ​	Net Amounts of		​ ​ ​	Gross Amounts Not Offset					​	​	​
​	​	​	​	​	Amounts		​	Assets		​	in the Consolidated					​	​	​
​	​	Gross		​	Offset in the		​	Presented in the		​	Balance Sheets					​	​	​
​	​	Amounts of		​	Consolidated		​	Consolidated		​	​	​	​	Cash		​	​	​
​	​	Recognized		​	Balance		​	Balance Sheets		​	Financial		​	Collateral		​	​	​
Offsetting of Derivative Assets	​	Assets		​	Sheets		​	(a)		​	Instruments		​ ​ ​	Received		​ ​ ​	Net Amount
December 31, 2025	​	$	272	​	$	—	​	$	272	​	$	—	​	$	—	​	$	272
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
December 31, 2024	​	$	3,227	​	$	—	​	$	3,227	​	$	—	​	$	—	​	$	3,227

	(a)	Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote.

​

​

​

15. COMMITMENTS AND CONTINGENCIES

Commitments

The following summarizes the Company’s 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 UDR’s 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.

F - 50

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

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 and cases with similar allegations that have been filed by the District of Columbia on November 1, 2023 in the Superior Court of the District of Columbia, the State of Maryland on January 15, 2025 in the Circuit Court for Prince George’s County, Maryland, subsequently transferred to the Circuit Court for Baltimore City, Maryland, and on April 8, 2025 in the Superior Court for King County, Washington**.** These cases seek injunctive relief as well as monetary damages. We believe that there are defenses, both factual and legal, to the allegations in such cases and we intend to vigorously defend such suits. We are also aware that governmental investigations regarding antitrust matters in the multifamily industry are occurring and the federal government and various state attorneys general have filed a civil lawsuit against RealPage, Inc. and certain owners or managers of multifamily housing to which we are not a party. As all of the above proceedings are in the early stages, it is not possible for us to predict the outcome or to estimate the amount of loss, if any, that may be associated with an adverse decision in any of these cases or any case that may be brought based on the investigations. As a result, as of December 31, 2025, there is no liability recorded.

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. UDR’s 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 UDR’s 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 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. 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 NOI is property management expense, which is calculated as 3.25% of property revenue, and land rent. Property management expense covers costs directly related to consolidated property operations, inclusive of corporate management, regional supervision, accounting and other costs. UDR’s CODM utilizes NOI as the key measure of segment profit or loss to assess the performance of each segment and to allocate resources (including employees and financial or capital resources) primarily during the quarterly or annual business review and annual budget and forecasting process.

UDR’s two reportable segments are Same-Store Communities and Non-Mature Communities/Other:

	●	Same-Store Communities represent those communities acquired, developed, and stabilized prior to January 1, 2024 and held as of December 31, 2025. A comparison of operating results from the prior year is meaningful as these communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior year, there is no plan to conduct substantial redevelopment activities, and the community is not classified as held for disposition within the current year. A community is considered to have stabilized occupancy once it achieves 90% occupancy for at least three consecutive months.

F - 51

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

	●	Non-Mature Communities/Other represent those communities that do not meet the criteria to be included in Same-Store Communities, including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed use properties.

Management evaluates the performance of each of our apartment communities on a Same-Store Community and Non-Mature Community/Other basis, as well as individually and geographically. This is consistent with the aggregation criteria under GAAP as each of our apartment communities generally has similar economic characteristics, facilities, services, and tenants. Therefore, the Company’s reportable segments have been aggregated by geography in a manner identical to that which is provided to the CODM.

All revenues are from external customers and no single tenant or related group of tenants contributed 10% or more of UDR’s total revenues during the years ended December 31, 2025, 2024, and 2023.

​

The following is a description of the principal streams from which the Company generates its revenue:

Lease Revenue

​

Lease revenue related to leases is recognized on an accrual basis when due from residents or tenants in accordance with ASC 842, Leases. Rental payments are generally due on a monthly basis and recognized on a straight-line basis over the noncancellable lease term because collection of the lease payments was probable at lease commencement, inclusive of any periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option. In addition, in circumstances where a lease incentive is provided to tenants, the incentive is recognized as a reduction of lease revenue on a straight-line basis over the lease term.

​

Lease revenue also includes all pass-through revenue from retail and residential leases and common area maintenance reimbursements from retail leases. These services represent non-lease components in a contract as the Company transfers a service to the lessee other than the right to use the underlying asset. The Company has elected the practical expedient under the leasing standard to not separate lease and non-lease components from its resident and retail lease contracts as the timing and pattern of revenue recognition for the non-lease component and related lease component are the same and the combined single lease component would be classified as an operating lease.

​

Other Revenue

​

Other revenue is generated by services provided by the Company to its retail and residential tenants and other unrelated third parties. Revenue is measured based on consideration specified in contracts with customers. The Company recognizes revenue when it satisfies a performance obligation by providing the services specified in a contract to the customer. These fees are generally recognized as earned.

​

Joint venture management and other fees

​

The Joint venture management and other fees revenue consists of management fees charged to our equity method joint ventures per the terms of contractual agreements and other fees. Joint venture fee revenue is recognized monthly as the management services are provided and the fees are earned or upon a transaction whereby the Company earns a fee. Joint venture management and other fees are not allocable to a specific reportable segment or segments.

​

The following table details rental income and NOI for UDR’s reportable segments for the years ended December 31, 2025, 2024, and 2023, and reconciles NOI to Net income/(loss) attributable to UDR, Inc. on the Consolidated Statements of Operations (dollars in thousands):

F - 52

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31, (a)
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
Reportable apartment home segment lease revenue	​	​	​	​	​	​	​	​	​
Same-Store Communities	​	​	​	​ ​ ​	​	​	​ ​ ​	​	​
West Region	​	$	496,427	​	$	483,285	​	$	468,797
Northeast Region	​		324,572	​		314,446	​		305,364
Mid-Atlantic Region	​	​	310,416	​	​	299,695	​	​	290,194
Southeast Region	​		220,993	​		222,515	​		222,488
Southwest Region	​		198,270	​		200,309	​		178,772
Non-Mature Communities/Other	​		88,044	​		87,669	​		104,893
Total segment and consolidated lease revenue	​	$	1,638,722	​	$	1,607,919	​	$	1,570,508
​	​	​	​	​	​	​	​	​	​
Reportable apartment home segment other revenue	​	​	​	​	​	​	​	​	​
Same-Store Communities	​	​	​	​ ​ ​	​	​	​ ​ ​	​	​
West Region	​	$	13,919	​	$	12,199	​	$	11,771
Northeast Region	​		9,545	​		8,239	​		7,558
Mid-Atlantic Region	​		14,282	​		13,210	​		11,269
Southeast Region	​		12,544	​		10,783	​		9,185
Southwest Region	​		9,737	​		8,848	​		7,230
Non-Mature Communities/Other	​		2,207	​		2,327	​		3,137
Total segment and consolidated other revenue	​	$	62,234	​	$	55,606	​	$	50,150
​	​	​	​	​	​	​	​	​	​
Total reportable apartment home segment rental income	​	​	​	​	​	​	​	​	​
Same-Store Communities	​	​	​	​ ​ ​	​	​	​ ​ ​	​	​
West Region	​	$	510,346	​	$	495,484	​	$	480,568
Northeast Region	​		334,117	​		322,685	​		312,922
Mid-Atlantic Region	​		324,698	​		312,905	​		301,463
Southeast Region	​		233,537	​		233,298	​		231,673
Southwest Region	​		208,007	​		209,157	​		186,002
Non-Mature Communities/Other	​		90,251	​		89,996	​		108,030
Total segment and consolidated rental income	​	$	1,700,956	​	$	1,663,525	​	$	1,620,658
​	​	​	​	​	​	​	​	​	​
Total reportable apartment home segment operating expenses	​	​	​	​	​	​	​	​	​
Same-Store Communities	​	​	​	​	​	​	​	​	​
Personnel	​	$	74,099	​	$	70,795	​	$	63,451
Utilities	​	​	73,102	​	​	69,438	​	​	66,453
Repair and maintenance	​	​	99,367	​	​	97,785	​	​	91,014
Administrative and marketing	​	​	39,007	​	​	35,565	​	​	31,765
Real estate taxes	​	​	199,444	​	​	196,006	​	​	189,373
Insurance	​	​	21,509	​	​	24,080	​	​	24,362
Non-Mature Communities/Other (b)	​	​	32,260	​	​	31,033	​	​	39,470
Total segment and consolidated operating expenses	​	$	538,788	​	$	524,702	​	$	505,888
​	​	​	​	​	​	​	​	​	​
Reportable apartment home segment NOI	​		​	​		​	​		​
Same-Store Communities	​		​	​		​	​		​
West Region	​	$	375,281	​	$	365,620	​	$	355,640
Northeast Region	​		217,524	​		209,241	​		205,711
Mid-Atlantic Region	​		222,797	​		214,376	​		207,223
Southeast Region	​		158,620	​		159,459	​		159,369
Southwest Region	​		129,955	​		131,164	​		118,267
Non-Mature Communities/Other	​		57,991	​		58,963	​		68,560
Total segment and consolidated NOI	​		1,162,168	​		1,138,823	​		1,114,770
​	​	​	​	​	​	​	​	​	​

F - 53

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31, (a)
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
Reconciling items:	​		​	​		​	​		​
Joint venture management and other fees	​		11,361	​		8,317	​		6,843
Property management	​		(55,281)	​		(54,065)	​		(52,671)
Other operating expenses	​		(30,734)	​		(30,416)	​		(20,222)
Real estate depreciation and amortization	​		(654,121)	​		(676,068)	​		(676,419)
General and administrative	​		(85,104)	​		(84,305)	​		(69,929)
Casualty-related (charges)/recoveries, net	​		(11,682)	​		(15,179)	​		(3,138)
Other depreciation and amortization	​		(25,914)	​		(19,405)	​		(15,419)
Gain/(loss) on sale of real estate owned	​	​	242,913	​	​	16,867	​	​	351,193
Income/(loss) from unconsolidated entities	​		28,388	​		20,235	​		4,693
Interest expense	​		(196,619)	​		(195,712)	​		(180,866)
Interest income and other income/(expense), net	​		19,175	​		(12,336)	​		17,759
Tax (provision)/benefit, net	​		(835)	​		(879)	​		(2,106)
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership	​		(25,965)	​		(6,246)	​		(30,104)
Net (income)/loss attributable to noncontrolling interests	​		(46)	​		(46)	​		(31)
Net income/(loss) attributable to UDR, Inc.	​	$	377,704	​	$	89,585	​	$	444,353

	(a)	Same-Store Community population consisted of 53,468 apartment homes.

	(b)	Non-Mature Communities/Other operating expenses include costs to manage recently acquired, developed and redeveloped communities, and the non-apartment components of mixed-use properties.

​

The following table details the assets of UDR’s reportable segments as of December 31, 2025 and 2024 (dollars in thousands):

​	​	​	​	​	​	​
​	​ ​ ​	December 31,		​ ​ ​	December 31,
​	​	2025		​	2024
Reportable apartment home segment assets:		​	​		​	​
Same-Store Communities (a):		​	​		​	​
West Region	​	$	4,686,593	​	$	4,613,733
Northeast Region	​		3,835,341	​		3,788,083
Mid-Atlantic Region	​		3,221,425	​		3,171,487
Southeast Region	​		1,663,389	​		1,615,846
Southwest Region	​		1,905,947	​		1,889,173
Non-Mature Communities/Other	​		1,175,190	​		1,135,041
Total segment assets	​		16,487,885	​		16,213,363
Accumulated depreciation	​		(7,374,546)	​		(6,901,026)
Total segment assets — net book value	​		9,113,339	​		9,312,337
Reconciling items:	​		​	​		​
Cash and cash equivalents	​		1,222	​		1,326
Restricted cash	​		35,710	​		34,101
Notes receivable, net	​		149,979	​		247,849
Investment in and advances to unconsolidated joint ventures, net	​		886,492	​		917,483
Operating lease right-of-use assets	​	​	187,624	​	​	186,997
Other assets	​		231,308	​		197,493
Total consolidated assets	​	$	10,605,674	​	$	10,897,586

	(a)	Same-Store Community population consisted of 53,468 apartment homes.

F - 54

UDR, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

DECEMBER 31, 2025

Markets included in the above geographic segments are as follows:

	i.	West Region — Orange County, San Francisco, Seattle, Los Angeles, Monterey Peninsula, Other Southern California and Portland

	ii.	Northeast Region — Boston, New York and Philadelphia

	iii.	Mid-Atlantic Region — Metropolitan D.C., Baltimore and Richmond

	iv.	Southeast Region — Tampa, Orlando, Nashville and Other Florida

	v.	Southwest Region — Dallas, Austin and Denver

​

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F - 55

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UDR, INC.

SCHEDULE III — REAL ESTATE OWNED

DECEMBER 31, 2025

(In thousands)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	Gross Amount at Which					​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Initial Costs					​	​	​	​	​	​	​	Carried at Close of Period					​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	Costs of		​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​ ​ ​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	Improvements		​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	Capitalized		​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Land and		​	Buildings		​	Total Initial		​	Subsequent		​	Land and		​	Buildings &		​	Total		​	​	​	​	​	​	​
​	​	​	​	​	Land		​	and		​	Acquisition		​	to Acquisition		​	Land		​	Buildings		​	Carrying		​	Accumulated		​	Date of	​	Date
​	​	Encumbrances		​	Improvements		​	Improvements		​	Costs		​	Costs		​	Improvements		​	Improvements		​	Value		​	Depreciation		​	Construction(a)	​	Acquired
WEST REGION	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Harbor at Mesa Verde	​	$	—	​	$	20,476	​	$	28,538	​	$	49,014	​	$	32,395	​	$	23,025	​	$	58,384	​	$	81,409	​	$	48,990	​	1965/2003	​	Jun-03
27 Seventy Five Mesa Verde	​	​	—	​	​	99,329	​	​	110,644	​	​	209,973	​	​	121,398	​	​	118,154	​	​	213,217	​	​	331,371	​	​	186,939	​	1979/2013	​	Oct-04
Huntington Vista	​	​	—	​	​	8,055	​	​	22,486	​	​	30,541	​	​	20,421	​	​	9,610	​	​	41,352	​	​	50,962	​	​	33,614	​	1970	​	Jun-03
Missions at Back Bay	​	​	—	​	​	229	​	​	14,129	​	​	14,358	​	​	7,275	​	​	11,205	​	​	10,428	​	​	21,633	​	​	7,564	​	1969	​	Dec-03
Eight 80 Newport Beach - North	​	​	—	​	​	62,516	​	​	46,082	​	​	108,598	​	​	75,638	​	​	72,722	​	​	111,514	​	​	184,236	​	​	85,078	​	1968/2000/2016	​	Oct-04
Eight 80 Newport Beach - South	​	​	—	​	​	58,785	​	​	50,067	​	​	108,852	​	​	66,609	​	​	63,868	​	​	111,593	​	​	175,461	​	​	81,517	​	1968/2000/2016	​	Mar-05
Beach & Ocean	​	​	—	​	​	12,878	​	​	-	​	​	12,878	​	​	42,113	​	​	13,606	​	​	41,385	​	​	54,991	​	​	25,675	​	2014	​	Aug-11
The Residences at Bella Terra	​	​	—	​	​	25,000	​	​	-	​	​	25,000	​	​	134,604	​	​	26,090	​	​	133,514	​	​	159,604	​	​	86,650	​	2013	​	Oct-11
The Residences at Pacific City	​	​	—	​	​	78,085	​	​	-	​	​	78,085	​	​	285,729	​	​	79,680	​	​	284,134	​	​	363,814	​	​	138,622	​	2018	​	Jan-14
ORANGE COUNTY, CA	​		—	​		365,353	​		271,946	​		637,299	​		786,182	​		417,960	​		1,005,521	​		1,423,481	​		694,649	​	​	​	​
2000 Post Street	​	​	—	​	​	9,861	​	​	44,578	​	​	54,439	​	​	49,496	​	​	14,829	​	​	89,106	​	​	103,935	​	​	63,600	​	1987/2016	​	Dec-98
Birch Creek	​	​	—	​	​	4,365	​	​	16,696	​	​	21,061	​	​	13,830	​	​	1,797	​	​	33,094	​	​	34,891	​	​	24,150	​	1968	​	Dec-98
Highlands Of Marin	​	​	—	​	​	5,996	​	​	24,868	​	​	30,864	​	​	35,487	​	​	8,509	​	​	57,842	​	​	66,351	​	​	47,222	​	1991/2010	​	Dec-98
Marina Playa	​	​	—	​	​	6,224	​	​	23,916	​	​	30,140	​	​	19,225	​	​	1,778	​	​	47,587	​	​	49,365	​	​	33,120	​	1971	​	Dec-98
River Terrace	​	​	—	​	​	22,161	​	​	40,137	​	​	62,298	​	​	12,503	​	​	23,103	​	​	51,698	​	​	74,801	​	​	43,087	​	2005	​	Aug-05
CitySouth	​	​	—	​	​	14,031	​	​	30,537	​	​	44,568	​	​	45,470	​	​	16,945	​	​	73,093	​	​	90,038	​	​	62,506	​	1972/2012	​	Nov-05
Bay Terrace	​	​	—	​	​	8,545	​	​	14,458	​	​	23,003	​	​	12,156	​	​	11,781	​	​	23,378	​	​	35,159	​	​	17,122	​	1962	​	Oct-05
Highlands of Marin Phase II	​	​	—	​	​	5,353	​	​	18,559	​	​	23,912	​	​	12,308	​	​	5,889	​	​	30,331	​	​	36,220	​	​	24,518	​	1968/2010	​	Oct-07
Edgewater	​	​	—	​	​	30,657	​	​	83,872	​	​	114,529	​	​	16,339	​	​	30,878	​	​	99,990	​	​	130,868	​	​	76,058	​	2007	​	Mar-08
Almaden Lake Village	​	​	27,000	​	​	594	​	​	42,515	​	​	43,109	​	​	15,645	​	​	1,276	​	​	57,478	​	​	58,754	​	​	43,302	​	1999	​	Jul-08
388 Beale	​	​	—	​	​	14,253	​	​	74,104	​	​	88,357	​	​	29,274	​	​	14,930	​	​	102,701	​	​	117,631	​	​	66,649	​	1999	​	Apr-11
Channel @ Mission Bay	​	​	—	​	​	23,625	​	​	-	​	​	23,625	​	​	137,067	​	​	24,598	​	​	136,094	​	​	160,692	​	​	87,911	​	2014	​	Sep-10
5421 at Dublin Station	​	​	—	​	​	8,922	​	​	-	​	​	8,922	​	​	119,045	​	​	8,942	​	​	119,025	​	​	127,967	​	​	24,367	​	2022	​	Sep-16
HQ	​	​	—	​	​	19,938	​	​	65,816	​	​	85,754	​	​	1,412	​	​	19,942	​	​	67,224	​	​	87,166	​	​	13,071	​	2021	​	Sep-22
Residences at Lake Merritt	​	​	—	​	​	8,664	​	​	56,876	​	​	65,540	​	​	1,082	​	​	8,667	​	​	57,955	​	​	66,622	​	​	7,326	​	2023	​	Dec-23
SAN FRANCISCO, CA	​		27,000	​		183,189	​		536,932	​		720,121	​		520,339	​		193,864	​		1,046,596	​		1,240,460	​		634,009	​	​	​	​
Crowne Pointe	​	​	—	​	​	2,486	​	​	6,437	​	​	8,923	​	​	13,577	​	​	3,439	​	​	19,061	​	​	22,500	​	​	15,263	​	1987	​	Dec-98
Hilltop	​	​	—	​	​	2,174	​	​	7,408	​	​	9,582	​	​	8,902	​	​	3,261	​	​	15,223	​	​	18,484	​	​	12,785	​	1985	​	Dec-98
The Kennedy	​	​	—	​	​	6,179	​	​	22,307	​	​	28,486	​	​	7,445	​	​	6,480	​	​	29,451	​	​	35,931	​	​	23,525	​	2005	​	Nov-05
Hearthstone at Merrill Creek	​	​	—	​	​	6,848	​	​	30,922	​	​	37,770	​	​	13,225	​	​	7,631	​	​	43,364	​	​	50,995	​	​	32,440	​	2000	​	May-08
Island Square	​	​	—	​	​	21,284	​	​	89,389	​	​	110,673	​	​	22,318	​	​	22,304	​	​	110,687	​	​	132,991	​	​	77,382	​	2007	​	Jul-08
elements too	​	​	—	​	​	27,468	​	​	72,036	​	​	99,504	​	​	28,952	​	​	30,658	​	​	97,798	​	​	128,456	​	​	84,661	​	2010	​	Feb-10
989elements	​	​	—	​	​	8,541	​	​	45,990	​	​	54,531	​	​	10,718	​	​	8,800	​	​	56,449	​	​	65,249	​	​	39,787	​	2006	​	Dec-09
Lightbox	​	​	—	​	​	6,449	​	​	38,884	​	​	45,333	​	​	2,674	​	​	6,505	​	​	41,502	​	​	48,007	​	​	25,845	​	2014	​	Aug-14
Ashton Bellevue	​	​	—	​	​	8,287	​	​	124,939	​	​	133,226	​	​	8,544	​	​	8,553	​	​	133,217	​	​	141,770	​	​	62,753	​	2009	​	Oct-16
TEN20	​	​	—	​	​	5,247	​	​	76,587	​	​	81,834	​	​	8,249	​	​	5,375	​	​	84,708	​	​	90,083	​	​	40,682	​	2009	​	Oct-16
Milehouse	​	​	—	​	​	5,976	​	​	63,041	​	​	69,017	​	​	3,015	​	​	6,155	​	​	65,877	​	​	72,032	​	​	35,809	​	2016	​	Nov-16
CityLine	​	​	—	​	​	11,220	​	​	85,787	​	​	97,007	​	​	2,442	​	​	11,343	​	​	88,106	​	​	99,449	​	​	46,845	​	2016	​	Jan-17
CityLine II	​	​	—	​	​	3,723	​	​	56,843	​	​	60,566	​	​	880	​	​	3,752	​	​	57,694	​	​	61,446	​	​	26,696	​	2018	​	Jan-19
Brio	​	​	—	​	​	21,780	​	​	147,188	​	​	168,968	​	​	6,535	​	​	21,930	​	​	153,573	​	​	175,503	​	​	40,850	​	2020	​	Jul-21
SEATTLE, WA	​		—	​		137,662	​		867,758	​		1,005,420	​		137,476	​		146,186	​		996,710	​		1,142,896	​		565,323	​	​	​	​
Rosebeach	​	​	—	​	​	8,414	​	​	17,449	​	​	25,863	​	​	10,612	​	​	9,106	​	​	27,369	​	​	36,475	​	​	22,312	​	1970	​	Sep-04
Tierra Del Rey	​	​	—	​	​	39,586	​	​	36,679	​	​	76,265	​	​	13,953	​	​	40,323	​	​	49,895	​	​	90,218	​	​	38,182	​	1998	​	Dec-07
The Westerly	​	​	—	​	​	48,182	​	​	102,364	​	​	150,546	​	​	54,855	​	​	51,583	​	​	153,818	​	​	205,401	​	​	114,663	​	1993/2013	​	Sep-10
Jefferson at Marina del Rey	​	​	—	​	​	55,651	​	​	-	​	​	55,651	​	​	107,644	​	​	62,846	​	​	100,449	​	​	163,295	​	​	85,389	​	2008	​	Sep-07
LOS ANGELES, CA	​		—	​		151,833	​		156,492	​		308,325	​		187,064	​		163,858	​		331,531	​		495,389	​		260,546	​	​	​	​
Boronda Manor	​	​	—	​	​	1,946	​	​	8,982	​	​	10,928	​	​	14,831	​	​	3,513	​	​	22,246	​	​	25,759	​	​	16,344	​	1979	​	Dec-98
Garden Court	​	​	—	​	​	888	​	​	4,188	​	​	5,076	​	​	8,650	​	​	1,881	​	​	11,845	​	​	13,726	​	​	8,767	​	1973	​	Dec-98
Cambridge Court	​	​	—	​	​	3,039	​	​	12,883	​	​	15,922	​	​	23,115	​	​	6,094	​	​	32,943	​	​	39,037	​	​	25,254	​	1974	​	Dec-98
Laurel Tree	​	​	—	​	​	1,304	​	​	5,115	​	​	6,419	​	​	9,575	​	​	2,569	​	​	13,425	​	​	15,994	​	​	10,570	​	1977	​	Dec-98
The Pointe At Harden Ranch	​	​	—	​	​	6,388	​	​	23,854	​	​	30,242	​	​	41,034	​	​	10,701	​	​	60,575	​	​	71,276	​	​	45,521	​	1986	​	Dec-98
The Pointe At Northridge	​	​	—	​	​	2,044	​	​	8,028	​	​	10,072	​	​	15,437	​	​	3,894	​	​	21,615	​	​	25,509	​	​	16,363	​	1979	​	Dec-98
The Pointe At Westlake	​	​	—	​	​	1,329	​	​	5,334	​	​	6,663	​	​	10,645	​	​	2,461	​	​	14,847	​	​	17,308	​	​	10,820	​	1975	​	Dec-98
MONTEREY PENINSULA, CA	​		—	​		16,938	​		68,384	​		85,322	​		123,287	​		31,113	​		177,496	​		208,609	​		133,639	​	​	​	​
Verano at Rancho Cucamonga Town Square	​	​	—	​	​	13,557	​	​	3,645	​	​	17,202	​	​	68,616	​	​	24,847	​	​	60,971	​	​	85,818	​	​	57,088	​	2006	​	Oct-02
Windemere at Sycamore Highland	​	​	—	​	​	5,810	​	​	23,450	​	​	29,260	​	​	13,226	​	​	6,582	​	​	35,904	​	​	42,486	​	​	29,005	​	2001	​	Nov-02

S - 1

UDR, INC.

SCHEDULE III — REAL ESTATE OWNED - (Continued)

DECEMBER 31, 2025

(In thousands)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	Gross Amount at Which					​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Initial Costs					​	​	​	​	​	​	​	Carried at Close of Period					​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	Costs of		​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​ ​ ​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	Improvements		​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	Capitalized		​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Land and		​	Buildings		​	Total Initial		​	Subsequent		​	Land and		​	Buildings &		​	Total		​	​	​	​	​	​	​
​	​	​	​	​	Land		​	and		​	Acquisition		​	to Acquisition		​	Land		​	Buildings		​	Carrying		​	Accumulated		​	Date of	​	Date
​	​	Encumbrances		​	Improvements		​	Improvements		​	Costs		​	Costs		​	Improvements		​	Improvements		​	Value		​	Depreciation		​	Construction(a)	​	Acquired
Strata	​	​	—	​	​	14,278	​	​	84,242	​	​	98,520	​	​	3,835	​	​	14,519	​	​	87,836	​	​	102,355	​	​	29,604	​	2010	​	Nov-19
OTHER SOUTHERN CA	​		—	​		33,645	​		111,337	​		144,982	​		85,677	​		45,948	​		184,711	​		230,659	​		115,697	​	​	​	​
Tualatin Heights	​	​	—	​	​	3,273	​	​	9,134	​	​	12,407	​	​	14,609	​	​	4,767	​	​	22,249	​	​	27,016	​	​	17,786	​	1989	​	Dec-98
PORTLAND, OR	​		—	​		3,273	​		9,134	​		12,407	​		14,609	​		4,767	​		22,249	​		27,016	​		17,786	​	​	​	​
TOTAL WEST REGION	​		27,000	​		891,893	​		2,021,983	​		2,913,876	​		1,854,634	​		1,003,696	​		3,764,814	​		4,768,510	​		2,421,649	​	​	​	​
NORTHEAST REGION	​		​	​		​	​		​	​		​	​		​	​		​	​		​	​		​	​		​		​		​
Garrison Square	​	​	-	​	​	6,475	​	​	91,027	​	​	97,502	​	​	32,079	​	​	6,878	​	​	122,703	​	​	129,581	​	​	84,389	​	1887/1990	​	Sep-10
Ridge at Blue Hills	​	​	25,000	​	​	6,039	​	​	34,869	​	​	40,908	​	​	11,868	​	​	6,781	​	​	45,995	​	​	52,776	​	​	31,604	​	2007	​	Sep-10
Inwood West	​	​	80,000	​	​	20,778	​	​	88,096	​	​	108,874	​	​	25,455	​	​	20,667	​	​	113,662	​	​	134,329	​	​	78,964	​	2006	​	Apr-11
14 North	​	​	72,500	​	​	10,961	​	​	51,175	​	​	62,136	​	​	25,601	​	​	12,117	​	​	75,620	​	​	87,737	​	​	53,057	​	2005	​	Apr-11
100 Pier 4	​	​	-	​	​	24,584	​	​	-	​	​	24,584	​	​	210,207	​	​	24,963	​	​	209,828	​	​	234,791	​	​	107,450	​	2015	​	Dec-15
345 Harrison	​	​	-	​	​	32,938	​	​	-	​	​	32,938	​	​	334,406	​	​	45,164	​	​	322,180	​	​	367,344	​	​	129,252	​	2018	​	Nov-11
Currents on the Charles	​	​	-	​	​	12,580	​	​	70,149	​	​	82,729	​	​	5,338	​	​	12,869	​	​	75,198	​	​	88,067	​	​	31,751	​	2015	​	Jun-19
The Commons at Windsor Gardens	​	​	-	​	​	34,609	​	​	225,515	​	​	260,124	​	​	37,040	​	​	35,405	​	​	261,759	​	​	297,164	​	​	112,976	​	1969	​	Aug-19
Charles River Landing	​	​	-	​	​	17,068	​	​	112,777	​	​	129,845	​	​	7,947	​	​	17,428	​	​	120,364	​	​	137,792	​	​	46,632	​	2010	​	Nov-19
Lenox Farms	​	​	-	​	​	17,692	​	​	115,899	​	​	133,591	​	​	21,756	​	​	18,260	​	​	137,087	​	​	155,347	​	​	52,671	​	2009	​	Nov-19
Union Place	​	​	50,198	​	​	9,902	​	​	72,242	​	​	82,144	​	​	10,034	​	​	10,232	​	​	81,946	​	​	92,178	​	​	28,793	​	2005	​	Jan-21
Bradlee Danvers	​	​	-	​	​	28,669	​	​	175,114	​	​	203,783	​	​	15,766	​	​	28,749	​	​	190,800	​	​	219,549	​	​	48,546	​	1874/2008	​	Jun-22
BOSTON, MA	​		227,698	​		222,295	​		1,036,863	​		1,259,158	​		737,497	​		239,513	​		1,757,142	​		1,996,655	​		806,085	​	​	​	​
10 Hanover Square	​	​	—	​	​	41,432	​	​	218,983	​	​	260,415	​	​	40,518	​	​	42,116	​	​	258,817	​	​	300,933	​	​	156,466	​	2005/2020	​	Apr-11
21 Chelsea	​	​	—	​	​	36,399	​	​	107,154	​	​	143,553	​	​	20,256	​	​	36,594	​	​	127,215	​	​	163,809	​	​	79,988	​	2001	​	Aug-11
View 34	​	​	—	​	​	114,410	​	​	324,920	​	​	439,330	​	​	140,303	​	​	116,315	​	​	463,318	​	​	579,633	​	​	296,854	​	1985/2013	​	Jul-11
95 Wall Street	​	​	—	​	​	57,637	​	​	266,255	​	​	323,892	​	​	41,655	​	​	58,919	​	​	306,628	​	​	365,547	​	​	195,216	​	2008	​	Aug-11
NEW YORK, NY	​		—	​		249,878	​		917,312	​		1,167,190	​		242,732	​		253,944	​		1,155,978	​		1,409,922	​		728,524	​	​	​	​
Park Square	​	​	—	​	​	10,365	​	​	96,050	​	​	106,415	​	​	4,942	​	​	10,707	​	​	100,650	​	​	111,357	​	​	43,510	​	2018	​	May-19
The Smith Valley Forge	​	​	—	​	​	17,853	​	​	95,973	​	​	113,826	​	​	4,909	​	​	17,890	​	​	100,845	​	​	118,735	​	​	29,753	​	2019	​	Sep-21
322 on North Broad	​	​	—	​	​	12,240	​	​	124,524	​	​	136,764	​	​	12,930	​	​	12,310	​	​	137,384	​	​	149,694	​	​	42,961	​	2018	​	Sep-21
The George Apartments	​	​	—	​	​	17,341	​	​	-	​	​	17,341	​	​	50,121	​	​	17,366	​	​	50,096	​	​	67,462	​	​	11,551	​	2022	​	Aug-20
Broadridge	​	​	—	​	​	20,917	​	​	155,226	​	​	176,143	​	​	1,652	​	​	20,917	​	​	156,878	​	​	177,795	​	​	6,193	​	2021	​	May-25
PHILADELPHIA, PA	​	​	—	​	​	78,716	​	​	471,773	​	​	550,489	​	​	74,554	​	​	79,190	​	​	545,853	​	​	625,043	​	​	133,968	​	​	​	​
TOTAL NORTHEAST REGION	​		227,698	​		550,889	​		2,425,948	​		2,976,837	​		1,054,783	​		572,647	​		3,458,973	​		4,031,620	​		1,668,577	​	​	​	​
MID-ATLANTIC REGION	​		​	​		​	​		​	​		​	​		​	​		​	​		​	​		​	​		​	​	​	​	​
Dominion Middle Ridge	​	​	—	​	​	3,311	​	​	13,283	​	​	16,594	​	​	21,190	​	​	4,838	​	​	32,946	​	​	37,784	​	​	26,123	​	1990	​	Jun-96
Dominion Lake Ridge	​	​	—	​	​	2,366	​	​	8,387	​	​	10,753	​	​	13,489	​	​	3,358	​	​	20,884	​	​	24,242	​	​	17,630	​	1987	​	Feb-96
Presidential Greens	​	​	—	​	​	11,238	​	​	18,790	​	​	30,028	​	​	23,612	​	​	11,974	​	​	41,666	​	​	53,640	​	​	33,029	​	1938	​	May-02
The Whitmore	​	​	—	​	​	6,418	​	​	13,411	​	​	19,829	​	​	29,756	​	​	7,936	​	​	41,649	​	​	49,585	​	​	36,723	​	1962/2008	​	Apr-02
Ridgewood	​	​	—	​	​	5,612	​	​	20,086	​	​	25,698	​	​	20,919	​	​	6,763	​	​	39,854	​	​	46,617	​	​	32,600	​	1988	​	Aug-02
Waterside Towers	​	​	—	​	​	13,001	​	​	49,657	​	​	62,658	​	​	44,436	​	​	51,608	​	​	55,486	​	​	107,094	​	​	45,440	​	1971	​	Dec-03
Wellington Place at Olde Town	​	​	—	​	​	13,753	​	​	36,059	​	​	49,812	​	​	26,618	​	​	15,445	​	​	60,985	​	​	76,430	​	​	52,286	​	1987/2008	​	Sep-05
Andover House	​	​	—	​	​	183	​	​	59,948	​	​	60,131	​	​	10,402	​	​	356	​	​	70,177	​	​	70,533	​	​	52,231	​	2004	​	Mar-07
Sullivan Place	​	​	—	​	​	1,137	​	​	103,676	​	​	104,813	​	​	27,346	​	​	2,230	​	​	129,929	​	​	132,159	​	​	99,259	​	2007	​	Dec-07
Delancey at Shirlington	​	​	—	​	​	21,606	​	​	66,765	​	​	88,371	​	​	14,141	​	​	21,722	​	​	80,790	​	​	102,512	​	​	59,927	​	2006/2007	​	Mar-08
View 14	​	​	—	​	​	5,710	​	​	97,941	​	​	103,651	​	​	11,159	​	​	5,806	​	​	109,004	​	​	114,810	​	​	73,410	​	2009	​	Jun-11
Capitol View on 14th	​	​	—	​	​	31,393	​	​	-	​	​	31,393	​	​	101,419	​	​	31,556	​	​	101,256	​	​	132,812	​	​	67,120	​	2013	​	Sep-07
Domain College Park	​	​	—	​	​	7,300	​	​	-	​	​	7,300	​	​	63,788	​	​	7,592	​	​	63,496	​	​	71,088	​	​	41,497	​	2014	​	Jun-11
1200 East West	​	​	—	​	​	9,748	​	​	68,022	​	​	77,770	​	​	8,096	​	​	10,045	​	​	75,821	​	​	85,866	​	​	39,330	​	2010	​	Oct-15
Courts at Huntington Station	​	​	—	​	​	27,749	​	​	111,878	​	​	139,627	​	​	11,271	​	​	28,422	​	​	122,476	​	​	150,898	​	​	73,649	​	2011	​	Oct-15
Eleven55 Ripley	​	​	—	​	​	15,566	​	​	107,539	​	​	123,105	​	​	12,167	​	​	16,130	​	​	119,142	​	​	135,272	​	​	60,908	​	2014	​	Oct-15
Arbor Park of Alexandria	​	​	160,930	​	​	50,881	​	​	159,728	​	​	210,609	​	​	19,407	​	​	52,191	​	​	177,825	​	​	230,016	​	​	105,327	​	1969/2015	​	Oct-15
Courts at Dulles	​	​	—	​	​	14,697	​	​	83,834	​	​	98,531	​	​	18,003	​	​	15,131	​	​	101,403	​	​	116,534	​	​	61,992	​	2000	​	Oct-15
Newport Village	​	​	—	​	​	50,046	​	​	177,454	​	​	227,500	​	​	34,205	​	​	51,183	​	​	210,522	​	​	261,705	​	​	126,713	​	1968	​	Oct-15
1301 Thomas Circle	​	​	—	​	​	27,836	​	​	128,191	​	​	156,027	​	​	6,828	​	​	27,932	​	​	134,923	​	​	162,855	​	​	55,328	​	2006	​	Aug-19
Station on Silver	​	​	—	​	​	16,661	​	​	109,198	​	​	125,859	​	​	2,468	​	​	16,825	​	​	111,502	​	​	128,327	​	​	38,992	​	2018	​	Dec-20
Seneca Place	​	​	—	​	​	21,184	​	​	98,173	​	​	119,357	​	​	15,348	​	​	21,280	​	​	113,425	​	​	134,705	​	​	39,113	​	1985	​	Jun-21
Canterbury Apartments	​	​	—	​	​	24,456	​	​	100,011	​	​	124,467	​	​	16,267	​	​	24,648	​	​	116,086	​	​	140,734	​	​	39,227	​	1986	​	Aug-21

S - 2

UDR, INC.

SCHEDULE III — REAL ESTATE OWNED - (Continued)

DECEMBER 31, 2025

(In thousands)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	Gross Amount at Which					​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Initial Costs					​	​	​	​	​	​	​	Carried at Close of Period					​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	Costs of		​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​ ​ ​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	Improvements		​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	Capitalized		​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Land and		​	Buildings		​	Total Initial		​	Subsequent		​	Land and		​	Buildings &		​	Total		​	​	​	​	​	​	​
​	​	​	​	​	Land		​	and		​	Acquisition		​	to Acquisition		​	Land		​	Buildings		​	Carrying		​	Accumulated		​	Date of	​	Date
​	​	Encumbrances		​	Improvements		​	Improvements		​	Costs		​	Costs		​	Improvements		​	Improvements		​	Value		​	Depreciation		​	Construction(a)	​	Acquired
The MO	​	​	—	​	​	27,135	​	​	-	​	​	27,135	​	​	115,796	​	​	27,135	​	​	115,796	​	​	142,931	​	​	19,087	​	2023	​	Jan-19
The Enclave at Potomac Club	​	​	—	​	​	20,013	​	​	124,470	​	​	144,483	​	​	239	​	​	20,013	​	​	124,709	​	​	144,722	​	​	1,066	​	2013	​	Nov-25
METROPOLITAN, D.C.	​		160,930	​		429,000	​		1,756,501	​		2,185,501	​		668,370	​		482,119	​		2,371,752	​		2,853,871	​		1,298,007	​	​	​	​
Calvert's Walk	​	​	—	​	​	4,408	​	​	24,692	​	​	29,100	​	​	16,913	​	​	5,847	​	​	40,166	​	​	46,013	​	​	32,938	​	1988	​	Mar-04
20 Lambourne	​	​	—	​	​	11,750	​	​	45,590	​	​	57,340	​	​	24,164	​	​	12,733	​	​	68,771	​	​	81,504	​	​	50,004	​	2003	​	Mar-08
Domain Brewers Hill	​	​	—	​	​	4,669	​	​	40,630	​	​	45,299	​	​	7,108	​	​	5,088	​	​	47,319	​	​	52,407	​	​	31,803	​	2009	​	Aug-10
Rodgers Forge	​	​	—	​	​	15,392	​	​	67,958	​	​	83,350	​	​	12,846	​	​	15,889	​	​	80,307	​	​	96,196	​	​	35,504	​	1945	​	Apr-19
Towson Promenade	​	​	57,913	​	​	12,599	​	​	78,847	​	​	91,446	​	​	13,930	​	​	12,841	​	​	92,535	​	​	105,376	​	​	36,287	​	2009	​	Nov-19
1274 at Towson	​	​	—	​	​	7,807	​	​	46,238	​	​	54,045	​	​	4,784	​	​	7,879	​	​	50,950	​	​	58,829	​	​	15,637	​	2020	​	Sep-21
Quarters at Towson Town Center	​	​	—	​	​	16,111	​	​	106,453	​	​	122,564	​	​	20,121	​	​	16,239	​	​	126,446	​	​	142,685	​	​	50,984	​	2008	​	Nov-21
BALTIMORE, MD	​		57,913	​		72,736	​		410,408	​		483,144	​		99,866	​		76,516	​		506,494	​		583,010	​		253,157	​	​	​	​
Waterside At Ironbridge	​	​	—	​	​	1,844	​	​	13,239	​	​	15,083	​	​	17,718	​	​	3,216	​	​	29,585	​	​	32,801	​	​	22,725	​	1987	​	Sep-97
Legacy at Mayland	​	​	—	​	​	1,979	​	​	11,524	​	​	13,503	​	​	44,535	​	​	6,483	​	​	51,555	​	​	58,038	​	​	47,624	​	1973/2007	​	Dec-91
RICHMOND, VA	​		—	​		3,823	​		24,763	​		28,586	​		62,253	​		9,699	​		81,140	​		90,839	​		70,349	​	​	​	​
TOTAL MID-ATLANTIC REGION	​		218,843	​		505,559	​		2,191,672	​		2,697,231	​		830,489	​		568,334	​		2,959,386	​		3,527,720	​		1,621,513	​	​	​	​
SOUTHEAST REGION	​		​	​		​	​		​	​		​	​		​	​		​	​		​	​		​	​		​	​	​	​	​
Summit West	​	​	—	​	​	2,176	​	​	4,710	​	​	6,886	​	​	21,609	​	​	4,690	​	​	23,805	​	​	28,495	​	​	19,282	​	1972	​	Dec-92
The Breyley	​	​	—	​	​	1,780	​	​	2,458	​	​	4,238	​	​	24,000	​	​	4,766	​	​	23,472	​	​	28,238	​	​	22,942	​	1977/2007	​	Sep-93
Lakewood Place	​	​	—	​	​	1,395	​	​	10,647	​	​	12,042	​	​	20,261	​	​	3,547	​	​	28,756	​	​	32,303	​	​	24,784	​	1986	​	Mar-94
Cambridge Woods	​	​	—	​	​	1,791	​	​	7,166	​	​	8,957	​	​	18,303	​	​	3,852	​	​	23,408	​	​	27,260	​	​	20,145	​	1985	​	Jun-97
Inlet Bay	​	​	—	​	​	7,702	​	​	23,150	​	​	30,852	​	​	31,580	​	​	12,024	​	​	50,408	​	​	62,432	​	​	43,669	​	1988/1989	​	Jun-03
MacAlpine Place	​	​	—	​	​	10,869	​	​	36,858	​	​	47,727	​	​	31,076	​	​	13,181	​	​	65,622	​	​	78,803	​	​	48,442	​	2001	​	Dec-04
The Vintage Lofts at West End	​	​	—	​	​	6,611	​	​	37,663	​	​	44,274	​	​	28,825	​	​	16,239	​	​	56,860	​	​	73,099	​	​	48,073	​	2009	​	Jul-09
Peridot Palms	​	​	—	​	​	6,293	​	​	89,752	​	​	96,045	​	​	7,003	​	​	6,919	​	​	96,129	​	​	103,048	​	​	42,584	​	2017	​	Feb-19
The Preserve at Gateway	​	​	—	​	​	4,467	​	​	43,723	​	​	48,190	​	​	4,499	​	​	4,625	​	​	48,064	​	​	52,689	​	​	20,752	​	2013	​	May-19
The Slade at Channelside	​	​	—	​	​	10,216	​	​	72,786	​	​	83,002	​	​	10,573	​	​	10,671	​	​	82,904	​	​	93,575	​	​	32,866	​	2009	​	Jan-20
Andover Place at Cross Creek	​	​	—	​	​	11,702	​	​	107,761	​	​	119,463	​	​	13,740	​	​	11,929	​	​	121,274	​	​	133,203	​	​	46,067	​	1997/1999	​	Nov-20
Meridian	​	​	—	​	​	6,611	​	​	-	​	​	6,611	​	​	126,516	​	​	6,613	​	​	126,514	​	​	133,127	​	​	11,318	​	2024	​	May-21
TAMPA, FL	​		—	​		71,613	​		436,674	​		508,287	​		337,985	​		99,056	​		747,216	​		846,272	​		380,924	​	​	​	​
Altamira Place	​	​	—	​	​	1,533	​	​	11,076	​	​	12,609	​	​	31,976	​	​	4,318	​	​	40,267	​	​	44,585	​	​	35,200	​	1984/2007	​	Apr-94
Regatta Shore	​	​	—	​	​	757	​	​	6,608	​	​	7,365	​	​	23,549	​	​	3,493	​	​	27,421	​	​	30,914	​	​	25,446	​	1988/2007	​	Jun-94
Alafaya Woods	​	​	—	​	​	1,653	​	​	9,042	​	​	10,695	​	​	17,386	​	​	3,238	​	​	24,843	​	​	28,081	​	​	22,010	​	1989/2006	​	Oct-94
Los Altos	​	​	—	​	​	2,804	​	​	12,349	​	​	15,153	​	​	19,009	​	​	5,315	​	​	28,847	​	​	34,162	​	​	25,491	​	1990/2004	​	Oct-96
Lotus Landing	​	​	—	​	​	2,185	​	​	8,639	​	​	10,824	​	​	18,932	​	​	3,544	​	​	26,212	​	​	29,756	​	​	20,782	​	1985/2006	​	Jul-97
Seville On The Green	​	​	—	​	​	1,282	​	​	6,498	​	​	7,780	​	​	13,428	​	​	2,206	​	​	19,002	​	​	21,208	​	​	14,819	​	1986/2004	​	Oct-97
Ashton @ Waterford	​	​	—	​	​	3,872	​	​	17,538	​	​	21,410	​	​	11,738	​	​	4,999	​	​	28,149	​	​	33,148	​	​	22,979	​	2000	​	May-98
Arbors at Lee Vista	​	​	—	​	​	6,692	​	​	12,860	​	​	19,552	​	​	25,058	​	​	8,312	​	​	36,298	​	​	44,610	​	​	26,087	​	1992/2007	​	Aug-06
Arbors at Maitland Summit	​	​	—	​	​	15,929	​	​	158,079	​	​	174,008	​	​	22,806	​	​	16,281	​	​	180,533	​	​	196,814	​	​	63,396	​	1998	​	Oct-21
Essex Luxe	​	​	—	​	​	9,068	​	​	94,487	​	​	103,555	​	​	1,966	​	​	9,164	​	​	96,357	​	​	105,521	​	​	28,210	​	2020	​	Oct-21
ORLANDO, FL	​		—	​		45,775	​		337,176	​		382,951	​		185,848	​		60,870	​		507,929	​		568,799	​		284,420	​	​	​	​
Legacy Hill	​	​	—	​	​	1,148	​	​	5,867	​	​	7,015	​	​	15,173	​	​	2,327	​	​	19,861	​	​	22,188	​	​	17,216	​	1977	​	Nov-95
Hickory Run	​	​	—	​	​	1,469	​	​	11,584	​	​	13,053	​	​	22,923	​	​	3,138	​	​	32,838	​	​	35,976	​	​	24,980	​	1989	​	Dec-95
Carrington Hills	​	​	—	​	​	2,117	​	​	-	​	​	2,117	​	​	53,967	​	​	5,661	​	​	50,423	​	​	56,084	​	​	36,811	​	1999	​	Dec-95
Brookridge	​	​	—	​	​	708	​	​	5,461	​	​	6,169	​	​	11,364	​	​	1,793	​	​	15,740	​	​	17,533	​	​	13,187	​	1986	​	Mar-96
Breckenridge	​	​	—	​	​	766	​	​	7,714	​	​	8,480	​	​	10,662	​	​	1,965	​	​	17,177	​	​	19,142	​	​	13,911	​	1986	​	Mar-97
Colonnade	​	​	—	​	​	1,460	​	​	16,015	​	​	17,475	​	​	15,023	​	​	3,062	​	​	29,436	​	​	32,498	​	​	23,108	​	1998	​	Jan-99
The Preserve at Brentwood	​	​	—	​	​	3,182	​	​	24,674	​	​	27,856	​	​	22,285	​	​	4,760	​	​	45,381	​	​	50,141	​	​	35,655	​	1998	​	Jun-04
Polo Park	​	​	—	​	​	4,583	​	​	16,293	​	​	20,876	​	​	25,786	​	​	7,552	​	​	39,110	​	​	46,662	​	​	32,911	​	1987/2008	​	May-06
NASHVILLE, TN	​		—	​		15,433	​		87,608	​		103,041	​		177,183	​		30,258	​		249,966	​		280,224	​		197,779	​	​	​	​
The Reserve and Park at Riverbridge	​	​	—	​	​	15,968	​	​	56,401	​	​	72,369	​	​	27,020	​	​	17,453	​	​	81,936	​	​	99,389	​	​	66,746	​	1999/2001	​	Dec-04
OTHER FLORIDA	​		—	​		15,968	​		56,401	​		72,369	​		27,020	​		17,453	​		81,936	​		99,389	​		66,746	​	​	​	​
TOTAL SOUTHEAST REGION	​		—	​		148,789	​		917,859	​		1,066,648	​		728,036	​		207,637	​		1,587,047	​		1,794,684	​		929,869	​	​	​	​
SOUTHWEST REGION	​		​	​		​	​		​	​		​	​		​	​		​	​		​	​		​	​		​	​	​	​	​
Thirty377	​	​	25,000	​	​	24,036	​	​	32,951	​	​	56,987	​	​	26,777	​	​	26,627	​	​	57,137	​	​	83,764	​	​	47,633	​	1999/2007	​	Aug-06
Legacy Village	​	​	90,000	​	​	16,882	​	​	100,102	​	​	116,984	​	​	40,423	​	​	24,030	​	​	133,377	​	​	157,407	​	​	104,573	​	2005/06/07	​	Mar-08

S - 3

UDR, INC.

SCHEDULE III — REAL ESTATE OWNED - (Continued)

DECEMBER 31, 2025

(In thousands)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	Gross Amount at Which					​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Initial Costs					​	​	​	​	​	​	​	Carried at Close of Period					​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	Costs of		​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​ ​ ​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	Improvements		​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	Capitalized		​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Land and		​	Buildings		​	Total Initial		​	Subsequent		​	Land and		​	Buildings &		​	Total		​	​	​	​	​	​	​
​	​	​	​	​	Land		​	and		​	Acquisition		​	to Acquisition		​	Land		​	Buildings		​	Carrying		​	Accumulated		​	Date of	​	Date
​	​	Encumbrances		​	Improvements		​	Improvements		​	Costs		​	Costs		​	Improvements		​	Improvements		​	Value		​	Depreciation		​	Construction(a)	​	Acquired
Addison Apts at The Park	​	​	-	​	​	22,041	​	​	11,228	​	​	33,269	​	​	26,009	​	​	32,215	​	​	27,063	​	​	59,278	​	​	20,327	​	1977/78/79	​	May-07
Addison Apts at The Park I	​	​	-	​	​	7,903	​	​	554	​	​	8,457	​	​	9,916	​	​	11,058	​	​	7,315	​	​	18,373	​	​	6,228	​	1970	​	May-07
Addison Apts at The Park II	​	​	-	​	​	10,440	​	​	634	​	​	11,074	​	​	3,620	​	​	8,458	​	​	6,236	​	​	14,694	​	​	5,036	​	1975	​	May-07
Savoye	​	​	-	​	​	8,432	​	​	50,483	​	​	58,915	​	​	9,183	​	​	9,148	​	​	58,950	​	​	68,098	​	​	22,860	​	2009	​	Nov-19
Savoye 2	​	​	-	​	​	6,451	​	​	56,615	​	​	63,066	​	​	7,388	​	​	7,126	​	​	63,328	​	​	70,454	​	​	24,548	​	2011	​	Nov-19
Fiori on Vitruvian Park	​	​	-	​	​	7,934	​	​	78,575	​	​	86,509	​	​	8,092	​	​	9,132	​	​	85,469	​	​	94,601	​	​	34,096	​	2013	​	Nov-19
Vitruvian West Phase I	​	​	41,317	​	​	6,273	​	​	61,418	​	​	67,691	​	​	5,926	​	​	6,918	​	​	66,699	​	​	73,617	​	​	26,398	​	2018	​	Nov-19
Vitruvian West Phase II	​	​	-	​	​	6,451	​	​	15,798	​	​	22,249	​	​	41,121	​	​	6,814	​	​	56,556	​	​	63,370	​	​	19,044	​	2021	​	Nov-19
Vitruvian West Phase III	​	​	-	​	​	7,141	​	​	2,754	​	​	9,895	​	​	65,644	​	​	7,405	​	​	68,134	​	​	75,539	​	​	16,432	​	2022	​	Nov-19
Villas at Fiori	​	​	-	​	​	9,921	​	​	776	​	​	10,697	​	​	42,012	​	​	9,986	​	​	42,723	​	​	52,709	​	​	5,532	​	2024	​	Nov-19
The Canal	​	​	40,472	​	​	12,671	​	​	98,813	​	​	111,484	​	​	6,470	​	​	12,831	​	​	105,123	​	​	117,954	​	​	34,403	​	2017	​	Apr-21
Cool Springs at Frisco Bridges	​	​	89,510	​	​	18,325	​	​	151,982	​	​	170,307	​	​	23,879	​	​	18,611	​	​	175,575	​	​	194,186	​	​	60,467	​	2012	​	May-21
Central Square at Frisco	​	​	36,398	​	​	7,661	​	​	52,455	​	​	60,116	​	​	2,711	​	​	7,684	​	​	55,143	​	​	62,827	​	​	9,699	​	2018	​	Aug-23
Villaggio	​	​	31,681	​	​	6,186	​	​	41,813	​	​	47,999	​	​	3,574	​	​	6,221	​	​	45,352	​	​	51,573	​	​	7,993	​	2016	​	Aug-23
Lofts at Palisades	​	​	39,178	​	​	8,198	​	​	56,143	​	​	64,341	​	​	1,600	​	​	8,210	​	​	57,731	​	​	65,941	​	​	10,013	​	2018	​	Aug-23
Flats at Palisades	​	​	31,472	​	​	5,546	​	​	43,854	​	​	49,400	​	​	4,245	​	​	5,623	​	​	48,022	​	​	53,645	​	​	8,753	​	2017	​	Aug-23
DALLAS, TX	​		425,028	​		192,492	​		856,948	​		1,049,440	​		328,590	​		218,097	​		1,159,933	​		1,378,030	​		464,035	​	​	​	​
Barton Creek Landing	​	​	-	​	​	3,151	​	​	14,269	​	​	17,420	​	​	29,299	​	​	6,169	​	​	40,550	​	​	46,719	​	​	36,583	​	1986/2012	​	Mar-02
Residences at the Domain	​	​	-	​	​	4,034	​	​	55,256	​	​	59,290	​	​	19,466	​	​	5,107	​	​	73,649	​	​	78,756	​	​	56,413	​	2007	​	Aug-08
Red Stone Ranch	​	​	-	​	​	5,084	​	​	17,646	​	​	22,730	​	​	16,505	​	​	5,842	​	​	33,393	​	​	39,235	​	​	23,506	​	2000	​	Apr-12
Lakeline Villas	​	​	-	​	​	4,148	​	​	16,869	​	​	21,017	​	​	13,347	​	​	5,032	​	​	29,332	​	​	34,364	​	​	20,342	​	2002	​	Apr-12
Estancia Villas	​	​	27,387	​	​	6,384	​	​	52,946	​	​	59,330	​	​	3,638	​	​	6,415	​	​	56,553	​	​	62,968	​	​	9,920	​	2018	​	Aug-23
Palo Verde	​	​	38,519	​	​	5,975	​	​	57,880	​	​	63,855	​	​	3,349	​	​	6,090	​	​	61,114	​	​	67,204	​	​	10,475	​	2019	​	Aug-23
AUSTIN, TX	​		65,906	​		28,776	​		214,866	​		243,642	​		85,604	​		34,655	​		294,591	​		329,246	​		157,239	​	​	​	​
Steele Creek	​	​	—	​	​	8,586	​	​	130,400	​	​	138,986	​	​	10,738	​	​	8,937	​	​	140,787	​	​	149,724	​	​	61,368	​	2015	​	Oct-17
Cirrus	​	​	—	​	​	13,853	​	​	-	​	​	13,853	​	​	89,087	​	​	14,025	​	​	88,915	​	​	102,940	​	​	20,585	​	2022	​	Feb-19
DENVER, CO	​	​	—	​		22,439	​		130,400	​		152,839	​		99,825	​		22,962	​		229,702	​		252,664	​		81,953	​	​	​	​
TOTAL SOUTHWEST REGION	​		490,934	​		243,707	​		1,202,214	​		1,445,921	​		514,019	​		275,714	​		1,684,226	​		1,959,940	​		703,227	​	​	​	​
TOTAL OPERATING COMMUNITIES	​		964,475	​		2,340,837	​		8,759,676	​		11,100,513	​		4,981,961	​		2,628,028	​		13,454,446	​		16,082,474	​		7,344,835	​	​	​	​
REAL ESTATE UNDER DEVELOPMENT	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
3001 Iowa Ave	​	​	—	​	​	13,468	​	​	—	​	​	13,468	​	​	59,417	​	​	13,468	​	​	59,417	​	​	72,885	​	​	—	​	​	​	​
TOTAL REAL ESTATE UNDER DEVELOPMENT	​		—	​		13,468	​		—	​		13,468	​		59,417	​		13,468	​		59,417	​		72,885	​		—	​	​	​	​
LAND	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Vitruvian Park®	​	​	—	​	​	22,547	​	​	1,467	​	​	24,014	​	​	18,690	​	​	30,323	​	​	12,381	​	​	42,704	​	​	906	​	​	​	​
Alameda Point Block 11	​	​	—	​	​	25,006	​	​	-	​	​	25,006	​	​	9,913	​	​	25,006	​	​	9,913	​	​	34,919	​	​	-	​	​	​	​
Newport Village II	​	​	—	​	​	5,237	​	​	-	​	​	5,237	​	​	21,414	​	​	5,237	​	​	21,414	​	​	26,651	​	​	-	​	​	​	​
2727 Turtle Creek	​	​	—	​	​	90,205	​	​	-	​	​	90,205	​	​	17,576	​	​	90,205	​	​	17,576	​	​	107,781	​	​	-	​	​	​	​
488 Residence at Riverwalk	​	​	—	​	​	16,053	​	​	-	​	​	16,053	​	​	9,442	​	​	16,053	​	​	9,442	​	​	25,495	​	​	-	​	​	​	​
TOTAL LAND	​		—	​		159,048	​		1,467	​		160,515	​		77,035	​		166,824	​		70,726	​		237,550	​		906	​	​	​	​
COMMERCIAL	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Brookhaven Shopping Center	​	​	—	​	​	—	​	​	—	​	​	—	​	​	31,188	​	​	7,793	​	​	23,395	​	​	31,188	​	​	16,549	​	​	​	​
3001 Iowa Ave Commercial	​	​	—	​	​	9,882	​	​	4,861	​	​	14,743	​	​	1	​	​	9,882	​	​	4,862	​	​	14,744	​	​	1,116	​	​	​	​
TOTAL COMMERCIAL	​		—	​		9,882	​		4,861	​		14,743	​		31,189	​		17,675	​		28,257	​		45,932	​		17,665	​	​	​	​
Other (b)	​	​	—	​	​	—	​	​	—	​	​	—	​	​	15,723	​	​	133	​	​	15,590	​	​	15,723	​	​	1,100	​	​	​	​
1745 Shea Center I	​	​	—	​	​	3,034	​	​	20,534	​	​	23,568	​	​	9,753	​	​	3,083	​	​	30,238	​	​	33,321	​	​	10,040	​	​	​	​
TOTAL CORPORATE	​		—	​		3,034	​		20,534	​		23,568	​		25,476	​		3,216	​		45,828	​		49,044	​		11,140	​	​	​	​
TOTAL COMMERCIAL & CORPORATE	​		—	​		12,916	​		25,395	​		38,311	​		56,665	​		20,891	​		74,085	​		94,976	​		28,805	​	​	​	​
Deferred Financing Costs and Other Non-Cash Adjustments	​	​	(3,295)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
TOTAL REAL ESTATE OWNED	​	$	961,180	​	$	2,526,269	​	$	8,786,538	​	$	11,312,807	​	$	5,175,078	​	$	2,829,211	​	$	13,658,674	​	$	16,487,885	​	$	7,374,546	​	​	​	​

(a)	Date of original construction/date of last major renovation, if applicable.

(b)	Includes unallocated accruals and capital expenditures.

S - 4

UDR, INC.

SCHEDULE III — REAL ESTATE OWNED - (Continued)

DECEMBER 31, 2025

(In thousands)

​

The aggregate cost for federal income tax purposes was approximately $15.9 billion at December 31, 2025 (unaudited).

The estimated depreciable lives for all buildings in the latest Consolidated Statements of Operations are 30 to 55 years.

​

S - 5

UDR, INC.

SCHEDULE III — REAL ESTATE OWNED - (Continued)

DECEMBER 31, 2025

(In thousands)

​

3-YEAR ROLLFORWARD OF REAL ESTATE OWNED AND ACCUMULATED DEPRECIATION

The following is a reconciliation of the carrying amount of total real estate owned at December 31, (in thousands):

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
Balance at beginning of the year	​	$	16,213,363	​	$	16,023,859	​	$	15,570,072
Real estate acquired (including joint venture consolidation)	​		322,391	​		—	​		410,581
Capital expenditures and development	​		313,137	​		295,548	​		441,606
Real estate sold	​		(361,006)	​		(106,044)	​		(398,400)
Balance at end of the year	​	$	16,487,885	​	$	16,213,363	​	$	16,023,859

​

The following is a reconciliation of total accumulated depreciation for real estate owned at December 31, (in thousands):

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
Balance at beginning of the year	​	$	6,901,026	​	$	6,267,830	​	$	5,762,501
Depreciation expense for the year	​		648,694	​		660,805	​		668,899
Accumulated depreciation on sales	​		(175,174)	​		(27,609)	​		(163,570)
Balance at end of year	​	$	7,374,546	​	$	6,901,026	​	$	6,267,830

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S - 6