JOINT VENTURES AND PARTNERSHIPS

3 Months Ended

Mar. 31, 2026

JOINT VENTURES AND PARTNERSHIPS

JOINT VENTURES AND PARTNERSHIPS

5. JOINT VENTURES AND PARTNERSHIPS

UDR has entered into joint ventures and partnerships with unrelated third parties to own, operate, acquire, renovate, develop, redevelop, dispose of, and manage real estate assets that are either consolidated and included in Real estate owned on the Consolidated Balance Sheets or are accounted for under the equity method of accounting, and are included in Investment in and advances to unconsolidated joint ventures, net, on the Consolidated Balance Sheets. The Company consolidates the entities that we control as well as any variable interest entity where we are the primary beneficiary. Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest.

UDR’s joint ventures and partnerships are funded with a combination of debt and equity. Our losses are typically limited to our investment and except as noted below, the Company does not guarantee any debt, capital payout or other obligations associated with our joint ventures and partnerships.

Unconsolidated joint ventures and partnerships

The Company recognizes earnings or losses from our investments in unconsolidated joint ventures and partnerships consisting of our proportionate share of the net earnings or losses of the joint ventures and partnerships. In addition, we may earn fees for providing management services for the communities held by the 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 March 31, 2026 and December 31, 2025 (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
		March 31,		March 31,		March 31,			December 31,			March 31,			December 31,			March 31,
Joint Ventures		2026		2026		2026		2025				2026			2025			2026			2025
Operating:
UDR/MetLife (a)		13		2,837		50.2	%		50.2	%		$	183,280		$	189,420		$	(1,213)		$	(1,041)
UDR/LaSalle		9		2,564		51.0	%		51.0	%			235,936			242,337			(3,269)			(1,035)
Total Joint Ventures		22		5,401								$	419,216		$	431,757		$	(4,482)		$	(2,076)

Number of

Apartment

Income/(loss) from investments

Commitments

Homes

Weighted

Investment at

Three Months Ended

Debt and Preferred Equity Program

March 31,

March 31,

Average

UDR

March 31,

December 31,

March 31,

and Real Estate Technology Investments (b)

2026

2026

Rate

Commitment (c)

2026

2025

2026

2025

Preferred equity investments:

Operating

10

3,617

10.5

%

$

222,537

$

238,710

$

236,997

$

4,169

$

2,479

Real estate technology and sustainability investments:

Real estate technology and sustainability investments

N/A

N/A

N/A

$

86,000

92,533

74,747

17,032

1,669

Total Debt and Preferred Equity Program and Real Estate Technology and Sustainability Investments

331,243

311,744

21,201

4,148

Sold unconsolidated joint ventures and partnerships

—

136,234

2,977

3,742

Total investment in and advances to unconsolidated joint ventures, net (a)

$

750,459

$

879,735

$

19,696

$

5,814

(a)	As of March 31, 2026 and December 31, 2025, the Company’s negative investment in one UDR/MetLife community of $7.2 million and $6.8 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 two investments that receive a variable percentage of the value created from the project upon a capital or liquidating event. During the three months ended March 31, 2026, the Company did not enter into and fund any new preferred equity investments and two preferred equity investment were fully redeemed.

In February 2026, the Company received aggregate proceeds of approximately $138.9 million from the full repayment of two preferred equity investments.

In April 2026, the Company acquired a 232-home operating apartment community located in Portland, Oregon in connection with the liquidation of the Company’s interest in a joint venture. (See Note 3, Real Estate Owned for

further discussion.)

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

As of March 31, 2026 and December 31, 2025, the Company had deferred fees of $8.2 million and $8.4 million, respectively, which will be recognized through earnings over the weighted average life of the related properties, upon the disposition of the properties to a third party, or upon completion of certain development obligations.

The Company recognized management fees of $2.5 million and $2.1 million for the three months ended March 31, 2026 and 2025, respectively, for management of the communities held by the joint ventures and partnerships. The management fees are included in Joint venture management and other fees on the Consolidated Statements of Operations.

The Company may, in the future, make additional capital contributions to certain of our joint ventures and partnerships should additional capital contributions be necessary to fund acquisitions or operations.

We consider various factors to determine if a decrease in the value of our Investment in and advances to unconsolidated joint ventures, net is other-than-temporary. These factors include, but are not limited to, age of the venture, our intent and ability to retain our investment in the entity, the financial condition and long-term prospects of the entity, and the relationships with the other joint venture partners and its lenders. Based on the significance of the unobservable inputs, we classify these fair value measurements within Level 3 of the valuation hierarchy. The Company did not incur any other-than-temporary impairments in the value of its investments in unconsolidated joint ventures during the three months ended March 31, 2026 and 2025.

Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of March 31, 2026 and December 31, 2025 (dollars in thousands):


		March 31,			December 31,
		2026			2025
Total real estate, net		$	3,069,461		$	3,580,595
Investments, at fair value			581,905			489,468
Cash and cash equivalents			56,377			78,177
Other assets			42,299			134,818
Total assets		$	3,750,042		$	4,283,058

Third party debt, net		$	1,830,475		$	2,496,081
Accounts payable and accrued liabilities			66,857			180,461
Total liabilities			1,897,332			2,676,542
Total equity		$	1,852,710		$	1,606,516

Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three months ended March 31, 2026 and 2025 (dollars in thousands):


		Three Months Ended
		March 31,
		2026			2025
Total revenues		$	103,052		$	90,121
Property operating expenses			47,384			42,420
Real estate depreciation and amortization			43,273			40,973
Operating income/(loss)			12,395			6,728
Interest expense			(33,646)			(42,279)
Net unrealized/realized gain/(loss) on held investments			98,529			15,612
Other income/(loss)			184			3,042
Net income/(loss)		$	77,462		$	(16,897)