UDR, Inc. [UDR] Filings

10-Q 1 udr-20240630x10q.htm 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number

1-10524

UDR, Inc.

(Exact name of registrant as specified in its charter)


Maryland	54-0857512
(State or other jurisdiction of	(I.R.S. Employer
incorporation of organization)	Identification No.)

1745 Shea Center Drive, Suite 200, Highlands Ranch, Colorado 80129

(Address of principal executive offices) (zip code)

(720) 283-6120

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01	UDR	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer ⌧	Accelerated Filer ◻	Non-Accelerated Filer ◻	Smaller Reporting Company ☐
			Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

The number of shares of UDR, Inc.’s common stock, $0.01 par value, outstanding as of July 29, 2024 was 329,823,561.

Table of Contents

UDR, INC.

INDEX

	PAGE
PART I — FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023 (audited)	3

Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 (unaudited)	4

Consolidated Statements of Comprehensive Income/(Loss) for the three and six months ended June 30, 2024 and 2023 (unaudited)	5

Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2024 and 2023 (unaudited)	6

Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (unaudited)	8

Notes to Consolidated Financial Statements (unaudited)	9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	40

Item 3. Quantitative and Qualitative Disclosures About Market Risk	57

Item 4. Controls and Procedures	57

PART II — OTHER INFORMATION

Item 1. Legal Proceedings	58

Item 1A. Risk Factors	58

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	74

Item 3. Defaults Upon Senior Securities	75

Item 4. Mine Safety Disclosures	75

Item 5. Other Information	75

Item 6. Exhibits	76

Signatures	77





Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2

Table of Contents

UDR, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)


	June 30,		December 31,
	2024		2023
	(unaudited)		(audited)
ASSETS
Real estate owned:
Real estate held for investment	$	16,070,591	$	15,757,456
Less: accumulated depreciation		(6,572,743)		(6,242,686)
Real estate held for investment, net		9,497,848		9,514,770
Real estate under development (net of accumulated depreciation of $0 and $184, respectively)		—		160,220
Real estate held for disposition (net of accumulated depreciation of $0 and $24,960, respectively)		—		81,039
Total real estate owned, net of accumulated depreciation		9,497,848		9,756,029

Cash and cash equivalents		2,770		2,922
Restricted cash		31,616		31,944
Notes receivable, net		241,842		228,825
Investment in and advances to unconsolidated joint ventures, net		958,943		952,934
Operating lease right-of-use assets		188,828		190,619
Other assets		195,958		209,969
Total assets	$	11,117,805	$	11,373,242

LIABILITIES AND EQUITY
Liabilities:
Secured debt, net	$	1,235,748	$	1,277,713
Unsecured debt, net		4,540,388		4,520,996
Operating lease liabilities		184,076		185,836
Real estate taxes payable		44,333		47,107
Accrued interest payable		47,289		47,710
Security deposits and prepaid rent		49,168		50,528
Distributions payable		151,518		149,600
Accounts payable, accrued expenses, and other liabilities		120,784		141,311
Total liabilities		6,373,304		6,420,801

Commitments and contingencies (Note 13)

Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership		1,021,782		961,087

Equity:
Preferred stock, no par value; 50,000,000 shares authorized at June 30, 2024 and December 31, 2023:
8.00% Series E Cumulative Convertible; 2,600,678 and 2,686,308 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		43,192		44,614
Series F; 11,647,322 and 11,867,730 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		1		1
Common stock, $0.01 par value; 450,000,000 shares authorized at June 30, 2024 and December 31, 2023:
329,539,663 and 329,014,512 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		3,295		3,290
Additional paid-in capital		7,508,794		7,493,217
Distributions in excess of net income		(3,840,808)		(3,554,892)
Accumulated other comprehensive income/(loss), net		7,910		4,914
Total stockholders’ equity		3,722,384		3,991,144
Noncontrolling interests		335		210
Total equity		3,722,719		3,991,354
Total liabilities and equity	$	11,117,805	$	11,373,242

See accompanying notes to consolidated financial statements.

Table of Contents

UDR, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
REVENUES:
Rental income	$	413,328	$	403,098	$	824,997	$	801,405
Joint venture management and other fees		1,992		1,450		3,957		2,692
Total revenues		415,320		404,548		828,954		804,097
OPERATING EXPENSES:
Property operating and maintenance		70,443		68,861		143,921		133,695
Real estate taxes and insurance		58,884		57,516		117,679		115,486
Property management		13,433		13,101		26,812		26,046
Other operating expenses		7,593		4,259		14,421		7,291
Real estate depreciation and amortization		170,488		168,925		340,346		338,225
General and administrative		20,136		16,452		37,946		33,932
Casualty-related charges/(recoveries), net		998		1,134		7,276		5,290
Other depreciation and amortization		4,679		3,681		8,995		7,330
Total operating expenses		346,654		333,929		697,396		667,295
Gain/(loss) on sale of real estate owned		—		325,884		16,867		325,885
Operating income		68,666		396,503		148,425		462,687

Income/(loss) from unconsolidated entities		4,046		9,697		13,131		19,404
Interest expense		(47,811)		(45,113)		(95,873)		(88,855)
Interest income and other income/(expense), net		6,498		10,447		12,363		11,457
Income/(loss) before income taxes		31,399		371,534		78,046		404,693
Tax (provision)/benefit, net		(386)		(1,351)		(723)		(1,585)
Net income/(loss)		31,013		370,183		77,323		403,108
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership		(2,013)		(22,630)		(5,162)		(24,583)
Net (income)/loss attributable to noncontrolling interests		(117)		(8)		(129)		(16)
Net income/(loss) attributable to UDR, Inc.		28,883		347,545		72,032		378,509
Distributions to preferred stockholders — Series E (Convertible)		(1,210)		(1,222)		(2,441)		(2,405)
Net income/(loss) attributable to common stockholders	$	27,673	$	346,323	$	69,591	$	376,104

Income/(loss) per weighted average common share:
Basic	$	0.08	$	1.05	$	0.21	$	1.14
Diluted	$	0.08	$	1.05	$	0.21	$	1.14

Weighted average number of common shares outstanding:
Basic		329,056		328,957		328,940		328,871
Diluted		329,572		332,480		329,334		332,412

See accompanying notes to consolidated financial statements.

Table of Contents

UDR, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(In thousands)

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net income/(loss)	$	31,013	$	370,183	$	77,323	$	403,108
Other comprehensive income/(loss), including portion attributable to noncontrolling interests:
Other comprehensive income/(loss) - derivative instruments:
Unrealized holding gain/(loss)		567		4,295		7,232		4,022
(Gain)/loss reclassified into earnings from other comprehensive income/(loss)		(1,991)		(1,852)		(3,986)		(3,222)
Other comprehensive income/(loss), including portion attributable to noncontrolling interests		(1,424)		2,443		3,246		800
Comprehensive income/(loss)		29,589		372,626		80,569		403,908
Comprehensive (income)/loss attributable to noncontrolling interests		(2,032)		(22,787)		(5,541)		(24,627)
Comprehensive income/(loss) attributable to UDR, Inc.	$	27,557	$	349,839	$	75,028	$	379,281

See accompanying notes to consolidated financial statements.

Table of Contents

UDR, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In thousands, except per share data)

(Unaudited)


							Distributions		Accumulated Other Comprehensive
	Preferred		Common		Paid-in		in Excess of		Income/(Loss),		Noncontrolling
	Stock		Stock		Capital		Net Income		net		Interests		Total
Balance at March 31, 2024	$	44,615	$	3,293	$	7,500,170	$	(3,638,370)	$	9,235	$	335	$	3,919,278
Net income/(loss) attributable to UDR, Inc.		—		—		—		28,883		—		—		28,883
Other comprehensive income/(loss)		—		—		—		—		(1,325)		—		(1,325)
Issuance/(forfeiture) of common and restricted shares, net		—		—		2,016		—		—		—		2,016
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		—		1		5,187		—		—		—		5,188
Common stock distributions declared ($0.425 per share)		—		—		—		(140,052)		—		—		(140,052)
Preferred stock distributions declared-Series E ($0.4602 per share)		—		—		—		(1,210)		—		—		(1,210)
Adjustment to reflect redemption value of redeemable noncontrolling interests		—		—		—		(90,059)		—		—		(90,059)
Balance at June 30, 2024	$	43,193	$	3,295	$	7,508,794	$	(3,840,808)	$	7,910	$	335	$	3,722,719


							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, 2023	$	44,615	$	3,290	$	7,493,217	$	(3,554,892)	$	4,914	$	210	$	3,991,354
Net income/(loss) attributable to UDR, Inc.		—		—		—		72,032		—		—		72,032
Other comprehensive income/(loss)		—		—		—		—		2,996		—		2,996
Issuance/(forfeiture) of common and restricted shares, net		—		1		2,101		—		—		—		2,102
Issuance of common shares through public offering, net		—		—		(418)		—		—		—		(418)
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		—		3		12,473		—		—		—		12,476
Contribution of noncontrolling interests in consolidated real estate		—		—		—		—		—		125		125
Common stock distributions declared ($0.85 per share)		—		—		—		(280,077)		—		—		(280,077)
Preferred stock distributions declared-Series E ($0.9204 per share)		—		—		—		(2,441)		—		—		(2,441)
Adjustment to reflect redemption value of redeemable noncontrolling interests		—		—		—		(75,430)		—		—		(75,430)
Balance at June 30, 2024	$	43,193	$	3,295	$	7,508,794	$	(3,840,808)	$	7,910	$	335	$	3,722,719


							Distributions		Accumulated Other Comprehensive
	Preferred		Common		Paid-in		in Excess of		Income/(Loss),		Noncontrolling
	Stock		Stock		Capital		Net Income		net		Interests		Total
Balance at March 31, 2023	$	44,615	$	3,292	$	7,494,042	$	(3,627,873)	$	6,823	$	210	$	3,921,109
Net income/(loss) attributable to UDR, Inc.		—		—		—		347,545		—		—		347,545
Other comprehensive income/(loss)		—		—		—		—		2,293		—		2,293
Issuance/(forfeiture) of common and restricted shares, net		—		—		2,271		—		—		—		2,271
Issuance of common shares through public offering, net		—		—		(11)		—		—		—		(11)
Adjustment for conversion of noncontrolling interest of unitholders in the Operating Partnership and DownREIT Partnership		—		3		12,314		—		—		—		12,317
Common stock distributions declared ($0.42 per share)		—		—		—		(138,379)		—		—		(138,379)
Preferred stock distributions declared-Series E ($0.4548 per share)		—		—		—		(1,222)		—		—		(1,222)
Adjustment to reflect redemption value of redeemable noncontrolling interests		—		—		—		(

UDR, Inc. [UDR] Filings
10-Q	[2024-07-31]
10-Q	[2024-05-01]
10-K	[2024-02-20]
10-Q	[2023-10-27]
10-Q	[2023-07-27]
10-Q	[2023-04-27]
10-K	[2023-02-13]
10-Q	[2022-10-27]
10-Q	[2022-07-27]
10-Q	[2022-04-27]
10-K	[2022-02-15]
10-Q	[2021-10-27]
10-Q	[2021-07-29]
10-Q	[2021-04-28]
10-K	[2021-02-18]
10-Q	[2020-10-30]
10-Q	[2020-07-29]
10-Q	[2020-05-07]
10-K	[2020-02-18]
10-Q	[2019-10-30]
10-Q	[2019-07-31]
10-Q	[2019-05-01]
10-K	[2019-02-19]
10-Q	[2018-10-30]
10-Q	[2018-07-31]
10-Q	[2018-04-26]
10-K	[2018-02-20]
10-Q	[2017-10-31]
10-Q	[2017-07-27]
10-Q	[2017-04-25]
10-K	[2017-02-21]
10-Q	[2016-10-26]
10-Q	[2016-07-27]
10-Q	[2016-04-26]
10-K	[2016-02-23]
10-Q	[2015-10-27]
10-Q	[2015-07-28]
10-Q	[2015-04-28]
10-K	[2015-02-24]
10-Q	[2014-10-29]
10-Q	[2014-07-29]
10-Q	[2014-04-29]
10-K	[2014-02-25]
10-Q	[2013-10-29]
10-Q	[2013-07-30]
10-Q	[2013-05-02]
10-K	[2013-02-27]
10-Q	[2012-10-31]
10-Q	[2012-08-01]
10-Q	[2012-05-02]
10-K	[2012-02-27]