JOINT VENTURES AND PARTNERSHIPS (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of unconsolidated joint ventures and partnerships

The following table summarizes the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net, which are accounted for under the equity method of accounting as of September 30, 2025 and December 31, 2024 (dollars in thousands):


	Number of	Number of
	Operating	Apartment	UDR's Weighted Average									Income/(loss) from investments
	Communities	Homes	Ownership Interest					Investment at				Three Months Ended				Nine Months Ended
	September 30,	September 30,	September 30,			December 31,		September 30,		December 31,		September 30,				September 30,
Joint Ventures	2025	2025	2025		2024			2025		2024		2025		2024		2025		2024
Operating:
UDR/MetLife (a)	13	2,837	50.2	%		50.2	%	$	195,387	$	206,308	$	62	$	(2,050)	$	(2,114)	$	(5,304)
UDR/LaSalle	5	1,590	51.0	%		51.0	%		258,381		267,562		(813)		(1,311)		(2,774)		(6,982)
Total Joint Ventures	18	4,427						$	453,768	$	473,870	$	(751)	$	(3,361)	$	(4,888)	$	(12,286)


	Number of	Apartment									Income/(loss) from investments
	Commitments	Homes	Weighted				Investment at				Three Months Ended				Nine Months Ended
Debt and Preferred Equity Program	September 30,	September 30,	Average		UDR		September 30,		December 31,		September 30,				September 30,
and Real Estate Technology Investments (b)	2025	2025	Rate		Commitment (c)		2025		2024		2025		2024		2025		2024
Preferred equity investments:
Operating	12	6,766	9.7	%	$	354,989	$	379,437	$	299,846	$	6,581	$	(1,253)	$	16,623	$	9,961

Real estate technology and sustainability investments:
Real estate technology and sustainability investments	N/A	N/A	N/A		$	86,000		71,900		57,344		4,416		493		5,927		5,950
Total Debt and Preferred Equity Program and Real Estate Technology and Sustainability Investments								451,337		357,190		10,997		(760)		22,550		15,911

Sold unconsolidated joint ventures and partnerships								—		81,123		3,765		2,241		5,792		7,626

Total investment in and advances to unconsolidated joint ventures, net (a)							$	905,105	$	912,183	$	14,011	$	(1,880)	$	23,454	$	11,251

(a)	As of September 30, 2025 and December 31, 2024, the Company’s negative investment in one UDR/MetLife community of $6.5 million and $5.3 million, respectively, is recorded in Accounts payable, accrued expenses, and other liabilities on the Consolidated Balance Sheets.

(b)

The Debt and Preferred Equity Program is the program through which the Company makes investments, including preferred equity investments, first mortgage loans, mezzanine loans (loans are recorded in Notes receivable, net on the Consolidated Balance Sheets) or other structured investments that may receive a fixed yield on the investment and may include provisions pursuant to which the Company participates in the increase in value of the property upon monetization of the applicable property. The Company’s preferred equity investments include three investments that receive a variable percentage of the value created from the project upon a capital or liquidating event. During the nine months ended September 30, 2025, the Company entered into and funded three new preferred equity investment and two preferred equity investment were redeemed.

In April 2025, the Company entered into a joint venture agreement with an unaffiliated joint venture partner in an operating community with a total of 256 apartment homes located in Daly City, California. The Company’s preferred equity investment of $13.0 million earns a preferred return of 12.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture. The Company has concluded that it does not control the joint ventures and accounts for its investments under the equity method of accounting.

In June 2025, the Company received full repayment of its approximately $54.8 million preferred equity investment, which was inclusive of principal and accrued return, in a stabilized community located in Queens, New York, upon recapitalization of the venture.

In July 2025, the Company entered into a joint venture agreement with an unaffiliated joint venture partner in an operating community with a total of 350 apartment homes located in Orlando, Florida. The Company’s preferred equity investment of $23.8 million earns a preferred return of 11.25% per annum. The unaffiliated joint venture partner is the managing member of the joint venture. The Company has concluded that it does not control the joint venture and accounts for its investments under the equity method of accounting.

In August 2025, the Company entered into a joint venture agreement with an unaffiliated joint venture partner in an operating community with a total of 400 apartment homes located in Yorba Linda, California. The Company’s preferred equity investment of $35.8 million earns a preferred return of 10.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture. The Company has concluded that it does not control the joint venture and accounts for its investments under the equity method of accounting.

In September 2025, the Company received full repayment of its approximately $32.2 million preferred equity investment, which was inclusive of principal and accrued return, in a stabilized community located in Thousand Oaks, California.

(c)	Represents UDR’s maximum funding commitment only and therefore excludes other activity such as income from investments.

Combined summary of balance sheets relating to unconsolidated joint ventures and partnerships

Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of September 30, 2025 and December 31, 2024 (dollars in thousands):


	September 30,		December 31,
	2025		2024
Total real estate, net	$	3,052,742	$	3,114,375
Investments, at fair value		469,137		372,478
Cash and cash equivalents		84,794		47,932
Other assets		126,537		147,344
Total assets	$	3,733,210	$	3,682,129

Third party debt, net	$	2,058,676	$	2,060,135
Accounts payable and accrued liabilities		169,168		158,505
Total liabilities		2,227,844		2,218,640
Total equity	$	1,505,366	$	1,463,489

Schedule of combined financial information relating to unconsolidated joint ventures and partnerships operations (not just proportionate share)

Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Total revenues	$	96,331	$	80,793	$	279,658	$	235,062
Property operating expenses		43,228		38,264		127,908		108,992
Real estate depreciation and amortization		40,099		37,412		121,171		112,465
Operating income/(loss)		13,004		5,117		30,579		13,605
Interest expense		(32,919)		(29,415)		(111,215)		(79,523)
Net unrealized/realized gain/(loss) on held investments		48,475		3,530		65,105		36,279
Other income/(loss)		193		(24)		3,579		(3,372)
Net income/(loss)	$	28,753	$	(20,792)	$	(11,952)	$	(33,011)

UDR, Inc. 10-Q