GAAP guidance requires that segment disclosures present the measure(s) used by the Chief Operating Decision Maker to decide how to allocate resources and for purposes of assessing such segments’ performance. UDR’s Chief Operating Decision Maker is comprised of several members of its executive management team 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”). 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. Excluded from NOI is property management expense, which is calculated as 2.875% of

property revenue to cover the regional supervision and accounting costs related to consolidated property operations, and land rent. UDR’s Chief Operating Decision Maker utilizes NOI as the key measure of segment profit or loss.

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

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 Chief Operating Decision Maker.

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 three and six months ended June 30, 2020 and 2019.

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 three and six months ended June 30, 2020 and 2019, and reconciles NOI to Net income/(loss) attributable to UDR, Inc. on the Consolidated Statements of Operations (dollars in thousands):


	Three Months Ended				Six Months Ended
	June 30, (a)				June 30, (b)
	2020		2019		2020		2019
Reportable apartment home segment lease revenue
Same-Store Communities (a)
West Region	$	101,551	$	104,196	$	200,750	$	199,495
Mid-Atlantic Region		54,803		54,905		110,889		109,205
Northeast Region		29,717		32,225		58,774		60,490
Southeast Region		32,715		31,844		61,433		59,565
Southwest Region		16,391		16,294		33,017		32,370
Non-Mature Communities/Other		62,404		30,523		144,340		67,763
Total segment and consolidated lease revenue	$	297,581	$	269,987	$	609,203	$	528,888

Reportable apartment home segment other revenue
Same-Store Communities (a)
West Region	$	2,842	$	3,047	$	5,543	$	6,045
Mid-Atlantic Region		1,429		1,727		3,001		3,729
Northeast Region		761		789		1,235		1,396
Southeast Region		1,226		1,719		2,593		3,431
Southwest Region		515		678		1,105		1,443
Non-Mature Communities/Other		1,628		516		3,395		1,453
Total segment and consolidated other revenue	$	8,401	$	8,476	$	16,872	$	17,497

Total reportable apartment home segment rental income
Same-Store Communities (a)
West Region	$	104,393	$	107,243	$	206,293	$	205,540
Mid-Atlantic Region		56,232		56,632		113,890		112,934
Northeast Region		30,478		33,014		60,009		61,886
Southeast Region		33,941		33,563		64,026		62,996
Southwest Region		16,906		16,972		34,122		33,813
Non-Mature Communities/Other		64,032		31,039		147,735		69,216
Total segment and consolidated rental income	$	305,982	$	278,463	$	626,075	$	546,385

Reportable apartment home segment NOI
Same-Store Communities (a)
West Region	$	78,533	$	81,724	$	155,876	$	156,324
Mid-Atlantic Region		39,102		40,045		79,479		79,225
Northeast Region		19,629		22,943		38,734		42,453
Southeast Region		22,801		23,322		44,257		44,169
Southwest Region		10,467		10,444		21,523		20,772
Non-Mature Communities/Other		41,721		21,257		97,849		46,475
Total segment and consolidated NOI		212,253		199,735		437,718		389,418
Reconciling items:
Joint venture management and other fees		1,274		2,845		2,662		5,596
Property management		(8,797)		(8,006)		(18,000)		(15,709)
Other operating expenses		(6,100)		(2,735)		(11,066)		(8,381)
Real estate depreciation and amortization		(155,056)		(117,934)		(310,532)		(230,402)
General and administrative		(10,971)		(12,338)		(25,949)		(24,805)
Casualty-related (charges)/recoveries, net		(102)		(246)		(1,353)		(246)
Other depreciation and amortization		(2,027)		(1,678)		(4,052)		(3,334)
Gain/(loss) on sale of real estate owned		61,303		5,282		61,303		5,282
Income/(loss) from unconsolidated entities		8,021		6,625		11,388		6,674
Interest expense		(38,597)		(34,417)		(77,914)		(67,959)
Interest income and other income/(expense), net		2,421		1,310		5,121		11,123
Tax (provision)/benefit, net		(1,526)		(125)		(1,690)		(2,337)
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership		(4,291)		(2,652)		(4,604)		(4,709)
Net (income)/loss attributable to noncontrolling interests		(34)		(47)		(40)		(89)
Net income/(loss) attributable to UDR, Inc.	$	57,771	$	35,619	$	62,992	$	60,122

(a)	Same-Store Community population consisted of 39,020 apartment homes.

(b)	Same-Store Community population consisted of 37,910 apartment homes.

The following table details the assets of UDR’s reportable segments as of June 30, 2020 and December 31, 2019 (dollars in thousands):


	June 30,		December 31,
	2020		2019
Reportable apartment home segment assets:
Same-Store Communities (a):
West Region	$	3,889,925	$	3,874,027
Mid-Atlantic Region		2,363,674		2,350,341
Northeast Region		1,635,118		1,632,980
Southeast Region		913,257		903,878
Southwest Region		605,801		600,349
Non-Mature Communities/Other		3,367,864		3,240,526
Total segment assets		12,775,639		12,602,101
Accumulated depreciation		(4,372,524)		(4,131,353)
Total segment assets — net book value		8,403,115		8,470,748
Reconciling items:
Cash and cash equivalents		833		8,106
Restricted cash		22,043		25,185
Notes receivable, net		155,956		153,650
Investment in and advances to unconsolidated joint ventures, net		598,058		588,262
Operating lease right-of-use assets		202,586		204,225
Other assets		181,880		186,296
Total consolidated assets	$	9,564,471	$	9,636,472

(a)	Same-Store Community population consisted of 39,020 apartment homes.

Markets included in the above geographic segments are as follows:

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

ii.

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

iii.

Northeast Region — New York and Boston

iv.

Southeast Region — Orlando, Nashville, Tampa and Other Florida

Southwest Region — Dallas, Austin and Denver