INVESTOR PRESENTATION MAY/JUNE 2017 Milehouse | Redmond, WA UDR, - - PDF document

INVESTOR PRESENTATION

MAY/JUNE 2017

Milehouse | Redmond, WA

UDR, Inc. (NYSE: UDR) has a demonstrated

history of successfully managing, buying, selling, developing and redeveloping attractive multifamily real estate properties in top-tier U.S. markets.

• S&P 500 Company
• ~$15.6 Billion Enterprise Value
• 2017 Annualized Declared Dividend of $1.24;

~3.3% as of May 2017.

Chief Financial Officer: Joe Fisher | 720-283-6139 Investor Relations: Chris Van Ens| 720-348-7762

TABLE OF CONTENTS

PAGE

UDR at a Glance 3 Why Invest in UDR? 4-6 Operating Excellence 7-8 Portfolio Diversification 9 Accretive Capital Allocation 10-13 Balance Sheet Strength 14 Components of Long-Term AFFO per Share Growth 15 Wrap Up – How UDR Creates Value 16 Operating Trends Update 17-19 2017 Guidance 20 Appendix Apartment Demographics and Fundamentals 22-27

2

Fiori on Vitruvian Park | Addison, TX

UDR AT A GLANCE

UDR is a multifamily REIT that owns, operates, develops and redevelops a diversified portfolio of apartment homes across various top-tier U.S. markets. UDR AT A GLANCE(1)

• Established in 1972
• 20 Markets
• 166 Communities
• 50,062 Homes
• Same-Store (“SS”) Revenue per Occupied Home: $2,043
• Total Portfolio Revenue per Occupied Home (inclusive of JVs): $2,120
• $15.6 Billion Enterprise Value(2)
• S&P 500 Company
• Investment Grade Rated
• $1.1 Billion Development Pipeline (7% of Enterprise Value, 66% of Dev. is funded)
• 178 Consecutive Quarters Paying a Dividend
• 3.3% Dividend Yield(2)
• Avg. Age of Communities: 16 years
• # of UDR Associates: ~1,600

Austin Baltimore Metro Washington, D.C. Richmond Boston New York Dallas Nashville Monterey Peninsula Los Angeles Orange County Orlando Tampa San Francisco San Diego Seattle Inland Empire Portland Denver Philadelphia West Coast:

% of SS NOI: 41% % of Total NOI: 42% Development: $734M

Southwest:

% of SS NOI: 4% % of Total NOI: 6% Development: $30M

Southeast:

% of SS NOI: 13% % of Total NOI: 10%

Northeast

% of SS NOI: 18% % of Total NOI: 19% Development: $367M

Mid-Atlantic

% of SS NOI: 24% % of Total NOI: 23%

UDR’S MARKET COMPOSITION(1)

(1) As of March 31, 2017. Development includes wholly-owned homes and MetLife joint ventures at UDR’s pro-rata ownership interest. (2) As of May 17, 2017. Source: Company documents.

3 2.5%-5.0% Total NOI > 5.0% of Total Portfolio NOI < 2.5% Total NOI

Total Shareholder Return

UDR’s core objective is to grow high-quality and predictable Adjusted Funds From Operations (“AFFO”), dividend and net asset value (“NAV”) per share. The attributes below aid us in executing this objective, which

• ver time, should drive above-average total shareholder return (“TSR”).

WHY INVEST IN UDR?

4

OPERATING EXCELLENCE

• Generate above-peer median SS growth

and continually enhance operating margins via revenue-generating/expense-reducing initiatives.

PORTFOLIO DIVERSIFICATION

• Diversified portfolio reduces market-

concentration risk/SS growth volatility and appeals to a wide renter/investor audience.

BALANCE SHEET STRENGTH

• Maintain a safe and liquid balance sheet

that can fully fund our internal and external needs throughout the real estate cycle.

ACCRETIVE CAPITAL ALLOCATION

• Invest in accretive internal and external
• pportunities that better position our

portfolio to maximize long-term returns.

We have executed well on our core objective of driving accretive growth by generating strong AFFO, dividend and NAV per share growth since the publication of our initial Strategic Outlook in February 2013.

UDR’S EXECUTION OVER TIME

5 144 141 143 90 100 110 120 130 140 150 2012 2013 2014 2015 2016 2017E

UDR Per Share Growth (indexed at 100 at YE 2012)(1)

AFFO/sh Growth Dividend/sh Growth NAV/sh Growth

7.6% AFFO/sh CAGR 7.1% Dividend/sh growth CAGR 8.7% NAV/sh CAGR

(1) 2017 AFFO/sh estimate represents mid-point of UDR’s guidance. (2) Data as of May 17, 2017. Source: Company documents and forecasts, Green Street Advisors and NAREIT.

182 141 170 90 110 130 150 170 190 2013 2014 2015 2016 2017 UDR NAREIT Equity Index S&P 500

This has translated into robust, relative total shareholder return.(2)

15.3% UDR TSR CAGR 13.5% S&P 500 Index TSR CAGR 8.6% NAREIT Equity Index TSR CAGR (Indexed at 100 in February 2013)

0.9 1.2 1.1 1.7 0.5 1.0 1.5 2.0 SS Revenue SS NOI

SS Growth Volatility Since 2000(2)

UDR Coefficient of Variation Peer Median Coefficient of Variation 160 152 90 100 110 120 130 140 150 160 170 2000 2004 2008 2012 2016

SS Revenue Growth (indexed at 100 in 2000)(1)

UDR Peer Median

UDR IS A FULL-CYCLE INVESTMENT

6

Full-cycle investments generate better-than-median risk-adjusted growth versus peers over multi-cycle periods. Our best-in-class operating platform has driven our long-term, same-store growth alpha.

Annual compounded SS revenue growth 35 bps above our peer group median.

Best-in-Class Operating Platform + Our Diversified Portfolio = Better Long- Term, Risk-Adjusted Same-Store Growth …While our diversified portfolio has contributed to lower long-term, same- store growth volatility.

(1) Peer average includes AIV, AVB, CPT, EQR, ESS and MAA. (2) As measured by same-store growth coefficients of variation (mean divided by standard deviation) from 2000-1Q 2017. Source: Company/Peer REIT documents and forecasts and SNL.

166 147 90 100 110 120 130 140 150 160 170 2000 2004 2008 2012 2016

SS NOI Growth (indexed at 100 in 2000)(1)

UDR Peer Median Annual compounded SS NOI growth 75 bps above our peer group median. Lower Volatility Higher Volatility

116 115 105 100 105 110 115 120 2011 2012 2013 2014 2015 2016

YOY SS Expense Growth (indexed to 100 in 2011)(3)

UDR Peer Median UDR Controllable

OPERATING EXCELLENCE

The strength of UDR’s best-in-class operating platform is founded on our in- depth market knowledge, our overall operating acumen and continuously innovating to drive results. “Winning” markets is a good gauge of an

• perator’s expertise. We “win” more than our fair share of markets.

7

Expense growth management also contributes meaningfully to NOI growth. We have tracked in-line with peer-median expense growth over time. But, have limited our controllable expense(2) growth to 1% annually since 2011.

(1) Winning a market is defined as ranking first among MF peers in year-over-year same-store revenue growth in a quarter. (2) Controllable expenses include Personnel, Repair and Maintenance, Utilities and Advertising and Marketing cost. (3) Peer average includes AIV, AVB, CPT, EQR, ESS, MAA and MORE. Source: Company and Peer REIT documents and SNL.

49% 44% 34% 29% 31% 40% 32% 21% 36% 46% 14% 18% 12% 23% 20% 15% 20% 20% 22% 24% 0% 10% 20% 30% 40% 50% 60% 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q 2017

% of UDR’s Markets Where UDR Produced the Highest SS Revenue Growth(1)

UDR Peer Avg. UDR has, on average, annually “won” 17% more markets than peers since 2008. Annual Expense CAGRs UDR: 2.9% Peer Median.: 2.8%

UDR Controllable: 1.0%

Real Estate taxes have grown considerably as valuations have increased.

4.0% 5.2% 6.0% 6.2% 5.9% 5.0% 1.2% 0.7% 0.6% 1% 2% 3% 4% 5% 6% 7%

YOY SS NOI Growth

UDR Peer Median 2014 2015 2016 Cumulative

• Est. UDR NOI Growth excl. Op. Initiatives
• Est. Incremental UDR NOI Growth from Op. Initiatives

6.5% 6.7% 5.2% 16.7% 17.2% 2.5% 10% 12% 14% 16% 18% 20%

OPERATING EXCELLENCE

Market revenue and expense growth act as governors on how quickly we can grow same-store NOI. Beating the market demands continuous innovation by implementing revenue-enhancing or expense-constraining

• initiatives. On average, ~80 bps of our annual incremental NOI growth since

year-end 2013 has been generated by growth/efficiency initiatives, resulting in over $10 million of incremental run-rate NOI.

8

Our initiatives have contributed an incremental ~75 bps to our same-store margin since year-end 2013. We have a process whereby we continually seek to implement new initiatives.

Source: Company documents.

71.4% 70.6% 69.0% 69.5% 70.0% 70.5% 71.0% 71.5% 2013 2014 2015 2016

UDR SS Operating Margin

Rolling 4Q SS Operating Margin

• Est. Rolling 4Q SS Op. Margin - Excl. Op. Initiatives

75 bps of margin expansion has come from operating initiatives. 19.5%

Our diversified portfolio is a differentiating factor versus peers, appeals to a wide renter and investor audience, lessens market-concentration risk and reduces volatility in our long-term, same-store growth. Diversification is a key component of being a full-cycle investment.

(1) Data as of March 31, 2017. Comparative top-5 markets for peer REITs are defined similarly to UDR’s market definitions. (2) Price point differential equals the percentage difference between 1st and 3rd quartile rent levels across each REIT’s portfolio. (3) A-quality is defined as having average community rent > 120% of market average rent. B-Quality = > 80% and < 120%. Source: Company and Peer REIT documents and AxioMetrics.

PORTFOLIO DIVERSIFICATION

9 44% 53% 60% 61% 63% 65% 67% 82% 84% 30% 55% 80% 105% MAA CPT AIV UDR AVB Peer Avg. MORE ESS EQR

% of SS Revenue in Five Largest Markets(1)

UDR’s Diversified Portfolio(1)

Markets: 20 Communities: 166 Total Homes: 50,062 SS Homes: 35,689 SS Rev. per Occupied Home: $2,043 Total Rev. per Occupied Home: $2,120 A/B and Urban/Suburban Mix: ~50%/50%

UDR’S FIVE LARGEST SAME-STORE MARKETS(1)

MARKET % OF SS REV # OF SS HOMES SS REV. /

• OCCUP. HOME

A / B QUALITY(3) URBAN / SUBURBAN Washington, D.C. 21% 7,551 $1,981 40%/60% 40%/60% SF Bay Area 12% 2,558 $3,374 65%/35% 70%/30% New York City 12% 1,945 $4,338 40%/60% 100%/0% Orange County 11% 3,367 $2,321 45%/55% 20%/80% Boston 6% 1,548 $2,939 60%/40% 45%/55%

31% 35% 39% 41% 44% 45% 52% 76% 81% 15% 35% 55% 75% 95% MAA CPT AVB MORE ESS Peer Avg. EQR AIV UDR

Portfolio-Wide Rental Rate Differential(1,2)

ACCRETIVE CAPITAL ALLOCATION

Source: Company documents.

10

We create value for shareholders in a variety of ways through accretive capital allocation. Development has been our preferred use of accretive capital since emerging from the “Great Recession.” In late 2013 we created our Developer Capital Program, wherein we invest in alternative development structures (e.g. participating loans, preferred equity investments) with superior risk-adjusted returns.

399 Fremont | San Francisco Residences at Bella Terra | Orange County 100 Pier 4 | Boston

Recent UDR Developments Developer Capital Program

OLiVE DTLA | Los Angeles 8th & Republican | Seattle

ACCRETIVE CAPITAL ALLOCATION

Development augments our low-risk operating growth and refreshes our

• portfolio. Our pipeline fluctuates between $900M and $1.4B, a size which

can be fully funded through free cash flow and modest asset sales.

Dallas

• 1 underway asset, $30M
• 2 land parcels, 2 entitled

Boston

• 1 underway asset,

$367M

• 1 land parcel, 1 entitled

Orange County

• 2 underway assets, $405M

San Francisco

• 1 underway asset, $50M
• 1 completed asset, $163M
• 1 land parcel

Los Angeles

• 1 underway asset, $63M
• 1 completed asset, $54M

NON-STABILIZED DEVELOPMENT PIPELINE (AS OF 3/31/2017)(1)

(1) Excludes preferred equity investments and participating loans. Size data is presented at UDR’s pro-rata share. Source: Company documents.

Size: $1.1B % Funded: 66% # of Homes: 2,807 % of Enterprise: 7%

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Over the past five years, our developments have generated $550-$600 million of cumulative NAV and 1-2% of annual incremental AFFO per share

• n $1.3 billion of total investment. Future value creation also looks strong.

$0.05 $0.05 $3.50 $0.53 $0.78 $0.43 $0.36 $1.35 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 2012 2013 2014 2015 2016 '17-'19E Total

Estimated Stabilized NAV per Share Creation(1)

Completions 1 4 5 1 2 6 19 Total Cost ($M) $41 $361 $476 $226 $217 $913 $2,234

• Est. NAV

Creation ($M)/% $12/30%- 35% $139/35%- 40% $206/40%- 45% $120/50%- 55% $106/45%- 50% $400/40%- 45% $983/40%- 45%

DEVELOPMENT PLATFORM

West Coast Texas Northeast

Source: Company documents.

PREFERRED EQUITY INVESTMENTS PARTICIPATING LOAN INVESTMENTS Steele Creek

Entered:

• Dec. 2013

Location: Denver Homes: 218 Size ($M): $94 ** Provided construction financing for a well-located, high-end community in the Cherry Creek area of Denver. Receive 6.5% return

• n our loan and 50% of the upside versus construction cost upon sale.

West Coast Development Joint Venture

Entered: May 2015 / Jan. 2017 Location: Seattle & California Homes: 1,688 Size ($M): $618 ** Invested in 6 differentiated, under-construction communities in major West Coast markets. Receive 6.5% preferred return on our investment and fixed price purchase options. Recently purchased one of the assets, CityLine, at a 5.3% AFFO cap rate.

Steele Creek | Denver

ACCRETIVE CAPITAL ALLOCATION

12

Access to apartment construction financing has tightened since mid-2015 while cost to construct has increased. We have taken advantage of this dislocation by investing in alternative development structures that generate strong risk-adjusted returns.

(40)% (20)% 0% 20% 40% 60% 4Q 2013 2Q 2014 4Q 2014 2Q 2015 4Q 2015 2Q 2016 4Q 2016

Tightening Construction Financing

Net % of Domestic Banks Reporting Stronger Demand for Commercial RE Construction Loans Net % of Domestic Banks Loosening Standards for Commercial RE Construction Loans Banks’ willingness to provide construction lending went negative in 3Q 2015.

UDR invests in $559M West Coast

Development JV – Preferred Equity.

Expands West Coast

JV with CityLine II investment.

DEVELOPER CAPITAL PROGRAM

Source: Company documents.

ACCRETIVE CAPITAL ALLOCATION

13

Home Properties Portfolio

Completed:

• Oct. 2015

Location: Washington, D.C. Homes: 3,246 Size ($M): $901 ** Purchased 6 high-quality assets in a bottoming market with accretive OP units priced at a premium to NAV, resulting in FFO accretion and deleveraging.

1200 East West | Washington, D.C.

UDR has generated favorable IRRs over time from our modestly sized capital recycling program which sells older communities and reinvests the proceeds into new development and our Developer Capital Program. Since 2013, the Company’s $1.2 billion of wholly-owned, multifamily dispositions have posted a robust weighted average IRR of 11.4%. ACCRETIVE ACQUISITIONS HARVESTING VALUE TO REINVEST ACCRETIVELY

$129 $372 $409 $285 $0 $100 $200 $300 $400 $500 2013 2014 2015 2016

Disposition IRRs Over Time

Dispositions ($M) IRR: 11.2% IRR: 10.6% IRR: 11.2% IRR: 12.8%

STRONG-RETURN REDEVELOPMENT

Eight 80 Newport Beach (formerly Coronados)

Completed: 2016 Location: Newport Beach, CA Homes: 1,447 Size ($M): $24 ** Completely re-skinned the community and redeveloped interior and exterior common areas.

Eight 80 Newport Beach | Newport Beach, CA

BALANCE SHEET STRENGTH

14

Our balance sheet is safe, liquid and flexible. We are comfortable with our credit metrics and the efficient pricing they provide.

Source: Company documents.

1Q 2017 UDR BALANCE SHEET STATS

Debt-to-Gross Asset Value 32.9% Net Debt-to-EBITDA 5.4x Fixed Charge Coverage 4.8x % of NOI Unencumbered 78.6%

• Avg. Debt Duration (Yrs)

4.6 % of Debt Maturing in Next 3 Yrs. 32.0% S&P Unsecured Rating BBB+ Moody’s Unsecured Rating Baa1 Translates into efficient pricing Well laddered maturity schedule Safely investment grade

Our funding flexibility emanates from our access to a wide variety of capital sources, through which we fund our business and growth opportunities.

Common Equity JV Capital Preferred Equity Unsecured Debt Secured Debt Line of Credit Commercial Paper Asset Dispositions

Not Attractively Attractively Yes No

UDR’S CAPITAL SOURCES

Development Redevelopment Revenue Enhancing Cap Ex Acquisitions Preferred Equity Investments Land Acquisition Joint Venture

Low High Large Small

UDR’S CAPITAL USES

Source in Size Priced Risk-Adjusted Return Investment Opportunity

SOURCES AND USES

When we consider UDR’s long-term earnings growth potential, we target AFFO per share growth ~450 basis points above the national apartment rent index. This target is driven by our historical operating performance, diversified portfolio, capital structure and accretive external growth, but can be impacted positively or negatively by a variety of factors.

0.8% 0.2% 1.4% 2.0% National Avg. Growth LT UDR Outperformance

• vs. National Avg.

LT NOI Spread to Revenue Leverage Effect LT Dev./Redev Contribution LT Targeted Range

COMPONENTS OF LT AFFO/SH GROWTH

15

Source: Company documents and forecasts.

10% 5%

Primary factors that can drive growth outside of our LT targeted range:

• Better/worse SS growth
• More/less development/redevelopment coming on-line
• Below-the-line items
• Capital sourcing decisions and/or cost of financing
• Nat. Avg. +200bps
• Nat. Avg. +700bps

Operations + Diversified Portfolio

Capital Structure

External Growth

The combination of these attributes should result in strong AFFO, NAV and dividend per share growth as well as above-average, relative total shareholder return over time.

WRAP-UP – HOW UDR CREATES VALUE

16

Best-In-Class Operating Platform

• Generates above peer-median SS

growth throughout the cycle

• Drives margin growth via revenue-

boosting / expense-reducing

• perating initiatives

UDR is a FULL-CYCLE INVESTMENT

** Better Risk-Adjusted Growth ** Portfolio Diversification

• Less volatile SS growth. vs. peer-

median throughout the cycle

• Reduces market concentration risk /

appeals to a wide renter audience

Accretive Re- / Development

• Moderately sized
• Strong profit

margins / returns

• Refreshes portfolio

Developer Capital Program

• Preferred Equity

Investments

• Participating Loans
• Strong risk-adjusted

return

UDR is a STRONG CAPITAL ALLOCATOR

** Multi-Platform Value Creation**

UDR has a LOW-RISK BALANCE SHEET

** Safe and Liquid Balance Sheet Capable of Fully Funding Internal / External Needs Throughout the Cycle **

AND AND

Other Accretive Capital Allocation / Recycling

• OP Unit Transactions
• Well-located

redevelopment

• Robust disposition IRRs

AND

HIGH-QUALITY, PREDICTABLE AFFO, NAV and Dividend per Share Growth

AND

ABOVE-AVERAGE, Long-Term Total Shareholder Return

(1) April 1, 2017 through May 17, 2017. Includes markets > 3% of SS NOI. (2) Coastal Markets: Seattle, Portland, SF Bay Area, Monterey Peninsula, Los Angeles, Orange County, Other SoCal, Boston, New York, Metro Washington, D.C. and Baltimore. Sunbelt Markets: Dallas, Austin, Nashville, Richmond, Orlando, Tampa and Other FL. (3) A-quality is defined as having average community rent > 120% of market average rent. B-Quality = > 80% and < 120%. Source: Company documents.

% SS NOI Effective YOY Blended Rate Growth Effective YOY New Lease Rate Growth Effective YOY Renewal Lease Rate Growth Annualized SS Turnover as of May 17th Market 1Q17 SS QTD 2Q17(1) SS QTD 2Q16(1) SS QTD 2Q17(1) SS QTD 2Q16(1) SS QTD 2Q17(1) SS QTD 2Q16(1) YTD 2017 YTD 2016 Washington, D.C. 19.8% 3.5% 3.5% 1.5% 2.1% 4.9% 4.9% 37.0% 37.8% San Francisco Bay Area 12.7% 3.5% 5.6% 2.3% 3.6% 4.4% 7.6% 46.5% 52.7% Orange County 11.3% 3.3% 6.6% 1.8% 5.9% 5.1% 7.6% 48.7% 48.4% New York 11.3% 2.4% 4.3% (1.2)% 2.0% 3.6% 5.9% 24.2% 26.7% Boston 6.4% 4.5% 6.4% 1.4% 5.2% 6.6% 7.3% 40.6% 36.9% Seattle 5.8% 6.6% 8.4% 6.9% 8.3% 6.4% 8.5% 49.7% 46.8% Los Angeles 4.5% 3.7% 2.2% 1.9% 0.2% 5.6% 5.6% 41.3% 54.0% Orlando 4.2% 6.2% 5.8% 4.9% 4.6% 7.3% 7.6% 44.7% 44.9% Tampa 3.9% 3.2% 6.0% 1.1% 6.5% 5.1% 5.4% 51.8% 46.3% Nashville 3.7% 3.8% 7.8% 2.0% 8.1% 5.4% 7.6% 51.0% 48.8% Monterey Peninsula 3.6% 7.4% 11.7% 6.9% 13.4% 7.7% 10.0% 43.1% 51.2% Dallas 3.1% 5.7% 7.7% 4.2% 7.7% 6.6% 7.7% 47.7% 47.8%

Total / SS

• Wtd. Avg.

100.0%

3.8% 5.6% 2.2% 4.6% 5.1% 6.6% 43.4% 44.3% Coastal(2) 80.1% 3.8% 5.3% 2.1% 4.1% 5.0% 6.6% Sunbelt(2) 19.9% 4.2% 6.4% 2.4% 6.2% 5.5% 6.6% A-Quality(3) 50.0% 3.5% 4.7% 1.9% 3.3% 4.7% 6.2% B-Quality(3) 50.0% 4.2% 6.4% 2.5% 5.8% 5.5% 7.0% Urban 50.0% 2.8% 4.2% 0.9% 2.3% 4.2% 6.1% Suburban 50.0% 4.6% 6.5% 3.0% 6.1% 5.8% 7.0%

OPERATING TRENDS UPDATE

17

Note: Blended lease rate growth does not equal revenue growth. Intra-quarter, YOY

new and renewal lease rate growth updates can lead to inaccurate conclusions regarding a market’s ability to perform due to small leasing sample sizes and a lack of transparency into market-level fee income growth and occupancy changes. QTD in 2Q 2017, we have repriced 18% of our SS homes.

SEE PAGE 18 FOR MARKET-LEVEL COMMENTARY ON THE BELOW DATA

OPERATING TRENDS UPDATE

(1) Blended lease rate growth is representative of UDR’s historical quarterly SS portfolios. Source: Company documents.

18

MAJOR MARKET LEASING COMMENTARY

• QTD blended lease rate growth of 3.8% in our same-store portfolio continues to

exhibit normal seasonal improvement and compares favorably versus 1Q 2017 blended lease rate growth of 2.5%.

• Washington, D.C. QTD new lease and renewal rate growth is picking up.
• San Francisco Bay Area continues to stabilize and exhibit better-than expected

new lease rate growth in 2017.

• New York remains challenging with new lease rate growth decelerating versus 1Q

2017 due to elevated concessionary pricing for new supply.

• Seattle’s QTD new lease rate growth is meaningfully better than 1Q 2017. We

expect this market to continue to improve.

• Los Angeles is steadily gaining pricing power as we begin to work our way through

the peak leasing season.

• Sunbelt and B-Quality communities continue to outperform their Coastal and A-

Quality counterparts, but the blended lease rate differential is tightening.

The YOY change in our blended lease rate growth(1) is improving.

1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 QTD 2Q 2017 YOY Blended Rate Growth 5.3% 5.3% 4.1% 2.4% 2.5% 3.8% YOY Change in Blended Rate Growth (bps) 30 (200) (330) (290) (280) (180)

YOY UDR SS Blended Lease Rate Growth

2016 2017 1Q 2Q 3Q 4Q

Austin Baltimore Metro Washington, D.C. Richmond New York Dallas Nashville Monterey Peninsula Los Angeles O.C. Orlando Tampa San Francisco Other Southern CA Seattle

3.0% to 4.0% Revenue Growth < 3.0% Revenue Growth

UDR Same-Store Market-Level Revenue Growth Expectations(1)

Boston

West Coast:

% of SS NOI: 41% % of Total NOI: 42%

Southwest:

% of SS NOI: 4% % of Total NOI: 6%

Northeast

% of SS NOI: 18% % of Total NOI: 19%

Mid-Atlantic

% of SS NOI: 24% % of Total NOI: 23%

Southeast:

% of SS NOI: 13% % of Total NOI: 10%

Portland

(1) Revenue growth based on UDR’s current 2017 market-level forecast. Source: Company documents.

> 4.0% Revenue Growth

OPERATING TRENDS UPDATE

19

Below is a property clock that outlines where we believe growth is trending in our major-market, same-store portfolios at this point in the real estate

• cycle. Note that markets can move clockwise and counter clockwise.

Peaking Market Decelerating Market Bottoming Market Accelerating Market

San Francisco Bay Area Washington, D.C. New York, NY Los Angeles Orlando Seattle Boston Nashville

UDR

Tampa Orange County Dallas

EARNINGS PER SHARE GUIDANCE 2Q 2017E FULL-YEAR 2017E

FFO per common share and unit $0.45 to $0.47 $1.83 to $1.87 FFO as Adjusted per common share and unit $0.45 to $0.47 $1.83 to $1.87 AFFO per common share and unit $0.41 to $0.43 $1.68 to $1.72 Annualized Dividend per common share and unit $1.24

SAME-STORE GUIDANCE FULL-YEAR 2017E

Revenue growth 3.00% to 4.00% Expense growth 2.50% to 3.50% NOI growth 3.25% to 4.25% Physical occupancy 96.7%

SOURCES OF FUNDS ($M) FULL-YEAR 2017E

Sales proceeds and debt and equity issuances $400 to $600 Construction loan proceeds $50 to $75 AFFO in excess of dividends $136 to $148

USES OF FUNDS ($M) FULL-YEAR 2017E

Debt maturities $(149) Development, redevelopment and land acquisition $(350) to $(450) Acquisitions $(66) to $(200) Revenue enhancing capex and K&Bs $(40) to $(50)

2017 GUIDANCE(1)

(1) As of March 31, 2017. Source: Company documents.

Barton Creek Landing | Austin, TX

20

APPENDIX: APARTMENT DEMOGRAPHICS AND FUNDAMENTALS

Acoma | Denver, CO

21

Positive demographic trends in the largest (Millennials) and second largest (Baby Boomers) population age cohorts signal continued sustainable and elevated demand for rental housing.

Source: U.S. Census Bureau.

RENTAL HOUSING DEMOGRAPHICS

22 10 12 14 16 18 20 22 24 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64

U.S. Population by Age Cohort (M)

Non-Foreign Born Foreign Born The Pig in the Python: Younger age cohorts are sizeable and will continue to grow via immigration. Strong LT trend for renter growth. Baby Boomers: Increasingly renting and moving urban. Millennials: Primary renter cohort.

In addition to robust population growth trends, propensity to rent has increased meaningfully across all age cohorts since the single-family housing downturn in the mid-2000s.

77.8% 69.3% 55.0% 44.4% 38.1% 32.6% 28.7% 26.3% 23.5% 41.5% 301 951 1,244 1,055 1,007 889 691 752 586 848 200 400 600 800 1,000 1,200 1,400 10% 20% 30% 40% 50% 60% 70% 80% < 25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 Weighted Avg.

Propensity to Rent by Age Cohort

1Q17 TTM (lt. axis) Increase Since Peak H.O. Rate (bps, rt. axis) Millennials were hit hard. Years Old: Years Old:

The combination of strong population growth in primary renter age cohorts, rising propensity to rent across all age cohorts and a variety of

• ther factors has resulted in renter household formation outpacing owner

formation since the mid-2000s.

Source: U.S. Census Bureau, Green Street Advisors, New York Federal Reserve and AxioMetrics.

(1,000) (500) 500 1,000 1,500 2,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018E

Household Growth by Type (000s)

YOY Owner HH Formation YOY Renter HH Formation

Renter demographic demand drivers look resilient in the years ahead. Changes in lifestyle preferences are long-cycle and amplified when factors limiting homeownership, such as rising student debt balances, are added to the equation. Unbundling Millennial households should also help.

Peak home-buying age  to 33 from 29 in the 1970s.

• Avg. age of marriage

 to 28 from 26 in 2002. Millennials are

• transient. Avg. job

tenure is 3.2 years. $0.4 $1.3 27% 32% $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 25% 26% 27% 28% 29% 30% 31% 32% 33% 2005 2007 2009 2011 2013 2015 Total Student Debt Outstanding (rt. axis) % of 18-34 Y.O. Living with Parents (lt. axis) LT Avg. 18-34 Y.O. Living with Parents (lt. axis) Returning to the LT average of 28% equates to 1.8 million additional households. LT Avg.: 28%

RENTAL HOUSING DEMOGRAPHICS

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(1) High-quality = Information, Financial Activities, Professional/Business Services and Education and Health Services. Low-Quality = Mining and Logging, Construction, Manufacturing, Trade, Transportation and Utilities, Leisure and Hospitality, Other Services and Government. Source: U.S. Census Bureau, AxioMetrics, Moody’s and Bureau of Labor Statistics.

Demographic drivers have and will continue to provide a beneficial tailwind to apartments. But, employment growth typically drives near- term demand. The overall employment outlook remains solid.

2.0% (6)% (5)% (4)% (3)% (2)% (1)% 0% 1% 2% 3% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E

Employment Growth

Total Employment Growth Millennial Employment Growth

• Total employment growth is expected to remain robust through

at least 2018.

• Millennial job growth remains strong.

The quality of jobs being created is as important to apartment demand as the absolute number of formations. Higher quality, higher paying job creation remains strong and has served as the backbone of the employment recovery following the Great Recession.

NEAR-TERM RENTAL DRIVERS

26.5% 27.0% 27.5% 28.0% 28.5% 29.0% (6,000) (4,000) (2,000) 2,000 4,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Job Creation by Quality (000s)(1)

High-Quality (lt. axis) Low-Quality (lt. axis) % of High-Quality Jobs in UDR Markets (rt. axis) Lower quality jobs faired far worse during the Great Recession. Higher quality jobs continue to drive demand for apartments. 24

(1) As of May 17, 2017. (2) High-quality = Information, Financial Activities, Professional/Business Services and Education and Health Services. Low-Quality = Mining and Logging, Construction, Manufacturing, Trade, Transportation and Utilities, Leisure and Hospitality, Other Services and

• Government. TTM = trailing twelve months.

Source: Bureau of Labor Statistics, AxioMetrics and Moody’s.

Employment growth in UDR’s same-store portfolio is expected to decelerate from 2.3% in 2016 to 1.8% in 2017. Market-level forecasts are more varied, but still point to generally solid employment growth moving forward.

NEAR-TERM RENTAL DRIVERS

MARKET % OF 1Q17 SS NOI 2017E JOB GROWTH

• VS. 2016 JOB

GROWTH TTM VS. TTM-1YR JOB QUALITY(2)

Washington, D.C. 19.8% 1.7%   SF Bay Area 12.7% 1.9%   Orange County 11.3% 1.7%   New York 11.3% 1.1%   Boston 6.4% 1.4%   Seattle 5.8% 2.6%   Los Angeles 4.5% 1.5%   Orlando 4.2% 3.3%   Tampa 3.9% 2.1%   Nashville 3.7% 1.9%   Monterey Peninsula 3.6% 1.3%   Dallas 3.1% 2.9%   SS Total 100.0% 1.8% / /

UDR’S MARKET-LEVEL EMPLOYMENT OVERVIEW(1)

Job Growth Legend:  = >50 bps Above 2016  = Within 50 bps of 2016  = <50 bps Below 2016 Job Quality Legend:  = Better than TTM-1Yr.  = In-Line with TTM-1Yr.  = Worse than TTM-1Yr.

25

Source: U.S. Census Bureau and AxioMetrics.

Working to counteract the strong employment environment is elevated new apartment supply. 2015 through 2018E deliveries have been, or are forecasted to be, near or above long-term trend. Deflating deliveries by household growth makes for more useful new supply comparisons over time. UDR will be exposed to a small subset of expected 2017 national apartment deliveries.

100 150 200 250 300 350 400 450 500 1997 2000 2003 2006 2009 2012 2015 2018E

U.S. Multifamily Real Completions (000s)

LT Real Avg.: 339 After severely underbuilding apartments from 2009-2014, 2016 and 2017 real supply growth looks elevated versus the LT avg. After 2017, supply growth is expected to moderate back below LT trend as construction lending tightens.

NEAR TERM RENTAL DRIVERS

26

National: 398K homes UDR’s Markets: 166K homes / 42% of National UDR’s Submarkets: 47K / 12% of National 2017E New Apartment Supply Overview Forecast New Supply Within 0.5- and 1-Mile Radii of a UDR Same-Store Community 0.5-Miles: 9K / 2% 1-Mile: 17K / 4%

Seattle

2017E Submarket Deliveries: 2,881 1H17 vs. 1H16:  2H17 vs. 2H16:  % of Deliveries in 1H17: 55%

2017 UDR SAME-STORE SUBMARKET APARTMENT DELIVERY EXPECTATIONS

Source: Company documents and AxioMetrics.

Year-over-year forecast apartment supply growth in UDR’s same-store submarkets varies widely by MSA. On a total same-store basis, the majority of competing supply should be delivered in the first half of 2017.

NEAR-TERM RENTAL DRIVERS

27

Orange County

2017E Submarket Deliveries: 2,581 1H17 vs. 1H16:  2H17 vs. 2H16:  % of Deliveries in 1H17: 36%

Dallas

2017E Submarket Deliveries: 4,463 1H17 vs. 1H16:  2H17 vs. 2H16:  % of Deliveries in 1H17: 66%

San Francisco Bay Area

2017E Submarket Deliveries: 4,245 1H17 vs. 1H16:  2H17 vs. 2H16:  % of Deliveries in 1H17: 45%

Los Angeles

2017E Submarket Deliveries: 883 1H17 vs. 1H16:  2H17 vs. 2H16:  % of Deliveries in 1H17: 8%

Boston

2017E Submarket Deliveries: 3,387 1H17 vs. 1H16:  2H17 vs. 2H16:  % of Deliveries in 1H17: 32%

New York

2017E Submarket Deliveries: 5,804 1H17 vs. 1H16:  2H17 vs. 2H16:  % of Deliveries in 1H17: 46%

Metro Washington, D.C.

2017E Submarket Deliveries: 7,038 1H17 vs. 1H16:  2H17 vs. 2H16:  % of Deliveries in 1H17: 45%

Florida and Nashville

2017E Submarket Deliveries: 10,409 1H17 vs. 1H16:  2H17 vs. 2H16:  % of Deliveries in 1H17: 51%

TOTAL DELIVERIES 1H17 VS. 1H16 2H17 VS. 2H16 % OF DELIVERIES IN 1H17 Total UDR SS Submarkets 46,531   46% Legend:  = YOY Decline > 5%  = YOY Change within 5%  = YOY Increase > 5%

** Color of market name indicates whether 2017 UDR submarket supply is forecast to grow in excess of market supply on a YOY basis: Green = Lower Growth in UDR Submarkets, Black = Similar Growth, Red = Higher Growth

Forward Looking Statements

Certain statements made in this presentation may constitute “forward-looking statements.” Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “estimates” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors, which include, but are not limited to, unfavorable changes in the apartment market, changing economic conditions, the impact

• f inflation/deflation on rental rates and property operating expenses, expectations concerning availability of capital and the

stabilization of the capital markets, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule, expectations on job growth, home affordability and demand/supply ratio for multifamily housing, expectations concerning development and redevelopment activities, expectations on occupancy levels and rental rates, expectations concerning the joint ventures with third parties, expectations that technology will help grow net operating income, expectations on annualized net operating income and other risk factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time, including the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking

• statements. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this

presentation, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the U.S. securities laws. Definitions and reconciliations can be found in the attached appendix and on UDR’s investor relations website at http://ir.udr.com/ under the News and Presentations heading.

FORWARD LOOKING STATEMENTS

28

Investor Relations Contact: Chris Van Ens cvanens@udr.com 720.348.7762