REPORTABLE SEGMENTS

12 Months Ended

Dec. 31, 2025

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

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.

● 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):

	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

	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.

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