UDR Announces First Quarter 2019 Results

UDR, Inc. (the "Company") First Quarter 2019 Highlights:

• Net income per share was $0.08, Funds from Operations ("FFO") per
  share was $0.51, FFO as Adjusted ("FFOA") per share was $0.50, and
  Adjusted Funds from Operations ("AFFO") per share was $0.47.
• Net income attributable to common stockholders was $23.5 million as
  compared to $80.8 million in the prior year period. The decrease was
  primarily due to lower gains on the sale of real estate.
• Year-over-year same-store ("SS") revenue, expense and net operating
  income ("NOI") growth was 3.8 percent, 3.0 percent and 4.1 percent,
  respectively.
• Acquired four apartment communities comprising 1,110 homes and two
  development sites for a total cash outlay, including debt payoffs, of
  $402.9 million.
• Commenced a $25.0 million redevelopment of 10 Hanover Square, a
  493-home community located in lower Manhattan, and a $10.5 million
  redevelopment of Garrison Square, a 160-home community located in the
  Back Bay neighborhood of Boston.
• The UDR/MetLife Joint Venture commenced construction of Vitruvian West
  Phase 2, a $64.0 million (at 100 percent), 366-home community located
  in Addison, TX.
• Issued approximately 4.35 million common shares through the Company's
  at-the-market equity program at a weighted average net price of $44.16
  for proceeds of $192.2 million.

Subsequent to Quarter-End Highlights:

• Acquired Rodgers Forge, a 498-home community located in Towson, MD,
  for $86.4 million.
• Entered into a contract to acquire Park Square, a 313-home community
  located in King of Prussia, PA, for $108.5 million.
• Invested in a Developer Capital Program ("DCP") project located in
  Oakland, CA with a total capital commitment of $27.3 million.

^{A reconciliation of FFO, FFOA and AFFO to GAAP Net income
attributable to common stockholders can be found on Attachment 2 of the
Company's first quarter Supplemental Financial Information.}

Operations

In the first quarter, total revenue increased by $17.4 million
year-over-year, or 6.9 percent, to $270.7 million. This increase was
primarily attributable to growth in revenue from operating, lease-up and
acquisition communities.

In the first quarter, same-store NOI increased 4.1 percent
year-over-year, driven by same-store revenue growth of 3.8 percent and
same-store expense growth of 3.0 percent. Weighted average same-store
physical occupancy decreased by 10 basis points year-over-year to 96.8
percent. The first quarter annualized rate of turnover was 39.2 percent,
representing a 110 basis point decrease year-over-year.