On this page of StockholderLetter.com we present the latest annual shareholder letter from UDR, Inc. — ticker symbol UDR. Reading current and past UDR letters to shareholders can bring important insights into the investment thesis.

 •  3/27/2025 Letter Continued (Full PDF)
 •  4/13/2023 UDR Stockholder Letter
 •  4/4/2024 UDR Stockholder Letter
 •  More "REITs" Category Stockholder Letters
 •  UDR Benford's Law Stock Score = 94

UDR Shareholder/Stockholder Letter Transcript:

To My Fellow Shareholders:
Over the course of my 24 years at UDR, Inc. (   UDR    or the    Company   ) and more than 30 years in the multifamily
industry, I have experienced numerous business and economic cycles, bouts of political uncertainty, and periods of
volatility. The last five years are a perfect example of how external factors such as a pandemic, interest rate volatility,
and the exponential rise in artificial intelligence can influence lifestyle preferences, investor perceptions, and the use
of technology in our daily lives. Despite these macro influences on the economy, housing remains a needs-based
business and one that is structurally undersupplied across the United States given high levels of demand. To help
evolve our Company and better manage through factors outside of our control, we have reenvisioned how we conduct
business by delivering a self-service model, dramatically re-thinking how to deliver superior customer experience,
and marrying our best-in-class operational acumen with innovation and capital deployment to drive value for our
associates, residents, and stakeholders.
To that end, 2024 was a strong year for UDR. Among our many accomplishments, the Company:
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Generated total shareholder return of 18.3%, which outperformed the NAREIT Equity REIT Index by
960 basis points.

Increased our dividend for the 15th consecutive year. Since 2009, we have raised our dividend by
approximately 6% on average each year, enhancing our already strong total return profile.

Advanced our innovation efforts to deliver greater resident satisfaction, improve resident retention and
length of stay, and enhance associate resources, thereby positioning the Company well for years to come.
Since the first quarter of 2023, UDR has delivered the highest increase in resident retention among our
apartment REIT peers. I thank Josh Gampp, Scott Wesson, Kristin Nicholson, and our Innovation Team for
continually finding creative solutions to advance the way we conduct business and deliver a desirable living
experience to our residents.

Adhered to capital market signals and maintained disciplined capital allocation, growing the Company
through the completion of two development projects totaling 415 apartment homes. Our business stands on
solid ground, and we continue to source external growth investments to create value. I thank Andrew
Cantor, Dan Campbell, Hilary Dowden, and their teams for their continual efforts to uncover attractive
capital deployment opportunities across our target markets.

Maintained a solid BBB+/Baa1 investment grade rating. I am grateful to Joe Fisher, Abe Claude, and their
teams for positioning our balance sheet with minimal debt maturities through 2026 while enhancing
liquidity to more than $1 billion.

Expanded our commitment to environmental, social, and governance (   ESG   ) goals, as evidenced by UDR
being named the 2024 Top Workplaces winner in the Real Estate industry, a LEED Homes Award recipient
in the Outstanding Developer category, and being named to Newsweek   s list of America   s Most
Responsible Companies for the third consecutive year. Chris Van Ens, Stephanie Marlin, Justin Rychlick,
and our Sustainability team rightfully deserve credit for advancing our long-term environmental strategy.

Extel1 recognized UDR   s Board, Chairman and CEO, President and CFO, and Investor Relations team as
being the best in their respective categories among large-cap U.S. REITs.
Extel (formerly Institutional Investor) offers annual rankings on corporates, buy-side and sell-side research, hedge funds, fixed income and asset
management. These rankings have become known as the benchmark for excellence and a published position is confirmation directly from
investors and/or sell-side analysts of the quality and reliability of a company   s efforts.
1745 Shea Center Dr., Suite 200
Highlands Ranch, CO 80129
Tel: 720.283.6120
Fax: 720.283.2453
www.udr.com

While the team and I are proud of our accomplishments, we continue to build the Company for the future and are
excited for what lies ahead. Namely, our primary goals remain to innovate and drive durable competitive advantages
across our diversified portfolio of apartment homes. Over time, these should generate attractive risk-adjusted returns
for our stakeholders irrespective of the economic cycle. To accomplish this, we remain focused on executing in areas
that we can control. These include continuous innovation, the quality of our customer service, growing the skill set
of our associates, solidifying our balance sheet and improving liquidity, and actively engaging investors.
We start 2025 on relatively stronger footing than 2024 as multifamily supply completions that reached 50-year highs
have been well absorbed over the last 12 to 15 months while employment growth remains resilient. Nevertheless, this
is balanced by items outside of our control such as interest rate volatility, economic uncertainty, geopolitical risks,
and regulatory risk, all of which could impact customer behavior. While the macro backdrop remains fluid, we remain
confident in our abilities to navigate through a wide range of outcomes. Our success over time can be directly linked
to four core attributes:
1)
Always listening to associates, customers, and other stakeholders to guide long-term strategy and
short-term tactics.
2)
Continually evolving how we conduct our business through ongoing innovation.
3)
Fostering an inclusive culture that empowers teams and associates to innovate while simultaneously
affording opportunities for career growth and work-life balance.
4)
Focusing on what we can control and creating strategies that mitigate risk from drivers of our business that
are out of our control.
Looking to 2025, we have strategically positioned ourselves with industry-leading occupancy of over 97% to begin
the year, with the intent of driving rental rate growth as supply pressures abate and the peak leasing season unfolds.
Also in our favor are several underlying fundamental factors including:
1)
Our consumer remains resilient, with rent-to-income ratios below the long-term average.
2)
Relative affordability versus alternative housing options remains decidedly in our favor at roughly 60% less
expensive to rent than own, a 25% improvement from pre-COVID, and supportive of a stable to declining
homeownership rate.
3)
The largest U.S. age cohorts remain in their prime renter years, according to the latest U.S. Census data,
providing continued support for long-term rental demand.
4)
Multifamily development starts activity has retreated by approximately 70% from recent highs and is now
well below historical norms, which should lead to a favorable demand versus supply dynamic and benefit
future rental rate growth.
Beyond the financial results we report are the structural enhancements we have been making to drive improved
outcomes for all UDR stakeholders. The best example of this is our Customer Experience Project, which helps to
improve our residents    UDR experience, improve resident retention over time, and better capture the lifetime value
of a UDR resident. In essence, we are creating a home for our residents for which they are prideful and want to live.
We have developed sentiment indicators from the interactions we have with our residents, which help inform us of
events that are pleasing, frustrating, or could otherwise be changed to enhance the living experience at a UDR
apartment community. From this, we are able to measure, map, and orchestrate improved engagement and targeted
actions that enhance the likelihood a resident will renew their lease and extend their residency with UDR. The
potential financial upside from this approach is material. For every 1% decrease in resident turnover our net operating
income (   NOI   ) increases by approximately $3.5 million. Since implementing our Customer Experience Project in
2023, annualized resident turnover has improved by more than 4%. UDR   s approach to customer experience is unique
among our peers, and we believe we can create a sustainable advantage that results in 5% to 10% better relative
turnover, which equates to approximately $20 to $35 million of higher run rate cash flow. I would like to thank Mike
Lacy, Matt Cozad, Cesar Armendariz, Jacob Wesson, and our approximately 1,400 associates across the country for
your continued passion to deliver success as we turn data into actions that drive enhanced cash flow.
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Culturally, we continue to increase the frequency, depth, and breadth of associate engagement. Nearly 90% of UDR
associates provide open and honest comments through various discussions, surveys, and townhall-style forums. I am
encouraged by our industry-leading response rate and feedback that shows an overwhelming majority of our
associates enjoy working for, and believe they can succeed at, UDR. This is best evidenced by achieving an all-time
Company low associate turnover rate of 20% in 2024, which is materially better the industry average of 33%. While
I am pleased with these results, Shezelle Krei, Breanne Bell, and our Human Resources teams continue to improve
our frameworks for engagement and growth. Based on what we have heard from our associates, we are taking actions
for our collective best interests through the implementation of individual development plans and enhanced
cross-functional collaboration. We have already engendered a philosophy of collaboration, trust, and innovation
where individuals feel welcomed, valued, proud, and empowered to do their best work. With our additional actions,
we are solidifying UDR   s status as a USA Today Top Workplace that associates are proud to represent.
Active investor engagement remains a cornerstone of our business, which enables proper communication of our
strategy and creates a channel for real-time feedback. In 2024 and early 2025, we conducted more than 700
conversations with investors through a variety of formats including industry conferences, property tours, and virtual
meetings. Investors have appreciated our responsiveness, transparency, and thoroughness, which resulted in UDR   s
Investor Relations Team, Investor Relations Officer, and Investor Relations Program being recognized by Extel as the
best among large-cap U.S. REITs. I thank Trent Trujillo and his team for all they do to maintain an open dialogue
between the Company and our stakeholders.
Management Update
At the beginning of 2025, we made two notable changes among executive management. First, Mike Lacy was
promoted to Chief Operating Officer after having served as Senior Vice President of Operations since 2019. It is
rewarding to see Mike make such material progress in his career, which started 18 years ago at UDR and has spanned
a variety of roles across the Company. Second, following the retirement of Harry Alcock, UDR   s longtime Chief
Investment Officer, Joe Fisher was appointed to the position of Chief Investment Officer in addition to his roles as
President and Chief Financial Officer. The Company has initiated an executive search process to recruit a new Chief
Financial Officer, and upon his or her hire Mr. Fisher will relinquish his responsibilities in that capacity while
retaining the roles of President and Chief Investment Officer.
Both Joe and Mike have demonstrated exemplary leadership and have made countless contributions to our culture
and the Company   s growth. These new roles reflect a natural expansion of their leadership skills and ability to
innovate and drive value creation across the organization.
Board Update
On a bittersweet note, James    Jim    Klingbeil has decided not to seek re-election to the Company   s Board and will
relinquish his role as Lead Independent Director. Jim, who joined the Board in 1998 and has overseen multiple
strategic plans through UDR   s transformation into a blue-chip company, has blessed UDR with his knowledge,
experience, and guidance. I am thankful that UDR and its investors will continue to benefit from his insights in his
new role as Chairman Emeritus.
With change comes opportunity, and we are fortunate to name Jon Grove as the Company   s next Lead Independent
Director. Similar to Jim, Jon has deep institutional knowledge and shares a commitment to innovation that drives
value creation. Together with the rest of our talented Directors, we have created an exceptional group of stewards to
oversee our continued growth as a leading real estate company.
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Reflection
When considering our long-term growth trajectory, we will continue to focus on our customers, associates, and
stakeholders.
1)
Customers. Our residents have healthy rent-to-income ratios and relative affordability continues to favor
apartments over other forms of housing. With the 50-year high in supply completions now in the rearview
mirror, the demand versus supply dynamic is reverting to our favor.
2)
Associates. Through frequent dialogue, we have created a strong and engaging culture that empowers our
associates to constantly innovate and help grow the Company.
3)
Stakeholders. We are highly engaged and understand what stakeholders believe we are doing well and
where we can and will improve.
From these interactions, we have created a company that is a full cycle investment and maximizes value creation for
our stakeholders regardless of the economic environment. In 2025 and beyond, we will lean into what we can control
and execute on. This means leveraging our operating platform, adjusting our tactics to combat the ever-changing
economic landscape, taking an opportunistic approach to capital allocation to ensure accretive deployment while
maintaining liquidity and balance sheet flexibility, and continuing to invest in our associates and culture. Taken
together, I believe these tactics will continue UDR   s proven history of success, as demonstrated by 11% average
annual total shareholder return over the course of my 24 years with the Company.
Finally, my and Senior Management   s thanks go out to our associates, the Company   s trusted partners, and our Board.
These groups drive success, and I look forward to seeing how our innovation will propel UDR forward in the years
to come.
Best,
Thomas W. Toomey
Chairman and Chief Executive Officer
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 3/27/2025 Letter Continued (Full PDF)