INVESTOR PRESENTATION MARCH 2017 Residences at Bella Terra | Orange - PDF document

INVESTOR PRESENTATION MARCH 2017 Residences at Bella Terra | Orange County, CA 3033 Wilshire | Los Angeles, CA UDR, Inc. (NYSE: UDR) has a demonstrated Chief Financial Officer: history of successfully managing, buying, selling, Joe Fisher | 720-283-6139 developing and redeveloping attractive multifamily real estate properties in U.S. markets. • S&P 500 Company Investor Relations: • ~$15.2 Billion Enterprise Value Chris Van Ens| 720-348-7762 • 2017 Annualized Declared Dividend of $1.24; ~3.4% as of February 28, 2017.

TABLE OF CONTENTS 2 PAGE UDR at a Glance 3 Why Invest in UDR? 4-6 Operating Excellence 7-8 Portfolio Diversification 9 Accretive Capital Allocation 10-12 Balance Sheet Strength 13 Components of Long-Term AFFO per Share Growth 14 Operating Trends Update 15-16 2017 Same-Store Market Revenue Growth Expectations 17 2017 Guidance 18 Appendix: Apartment Demographics and Fundamentals 20-25 Fiori on Vitruvian Park | Addison, TX

UDR AT A GLANCE 3 UDR is a multifaceted apartment REIT that owns, operates, develops and redevelops a diversified portfolio of apartment homes across various major U.S. markets. UDR AT A GLANCE (1) • • • • Established in 1972 20 Markets 165 Communities 49,907 Homes • Same-Store Revenue per Occupied Home: $1,981 • Total Portfolio Revenue per Occupied Home (inclusive of JVs): $2,090 • • • $15.2 Billion Enterprise Value (2) S&P 500 Company Investment Grade Rated • $1.1 Billion Development Pipeline (7% of Enterprise Value, 29% of Dev. is in Lease-Up) • • 177 Consecutive Quarters Paying a Dividend 3.4% Dividend Yield (2) • • Avg. Age of Communities: 16 years # of UDR Associates: ~ 1,600 UDR’S MARKET COMPOSITION (1) > 5.0% of Total Portfolio NOI 2.5%-5.0% Total NOI < 2.5% Total NOI Northeast Seattle % of SS NOI: 18% % of Total NOI: 19% Boston Development: $367M Portland New York Philadelphia San Francisco Metro Washington, D.C. Baltimore Richmond Monterey Peninsula Denver Mid-Atlantic Los Angeles Nashville % of SS NOI: 19% Inland Empire % of Total NOI: 23% O.C. Dallas San Diego Orlando Austin West Coast: % of SS NOI: 44% Tampa % of Total NOI: 41% Southwest: Development: $734M Southeast: % of SS NOI: 5% % of SS NOI: 15% % of Total NOI: 6% % of Total NOI: 11% Development: $30M (1) As of December 31, 2016. Development includes wholly- owned homes and MetLife joint ventures at UDR’s pro -rata ownership interest. (2) As of February 28, 2017. Source: Company documents.

WHY INVEST IN UDR? 4 Our overall strategic direction is driven by the interplay between our operating, portfolio diversification, capital allocation and balance sheet strategies. These strategies make UDR a full-cycle investment , drive high- quality, predictable Adjusted Funds From Operations (“AFFO”), dividend and net asset value (“NAV”) per share growth , and should result in above- average, long-term total shareholder return (“TSR”) . OPERATING EXCELLENCE PORTFOLIO DIVERSIFICATION • • Maximize revenue growth and consistently Maintain a diversified portfolio to reduce enhance operating margins via revenue- market-concentration risk and appeal to a generating/expense-reducing initiatives wide renter and investor audience. that drive NOI growth. Total Shareholder Return BALANCE SHEET STRENGTH ACCRETIVE CAPITAL ALLOCATION • • Maintain a safe and liquid balance sheet Invest in accretive internal and external that can fully fund our internal and external opportunities that better position our needs throughout the real estate cycle. portfolio to maximize long-term returns.

UDR IS A FULL-CYCLE INVESTMENT 5 Operating Excellence + Diversified Portfolio = Better Risk-Adjusted Growth Full-cycle investments generate better-than-average risk-adjusted growth versus peers over multi-cycle periods. Our best-in-class operating platform has driven our long-term, same-store growth alpha. SS Revenue Growth (indexed at SS NOI Growth (indexed at 100 100 in 2000) (1) in 2000) (1) 170 164 170 UDR Apt. REIT Peer Avg. UDR Apt. REIT Peer Avg. 170 160 160 Average annual Average annual compounded SS revenue compounded SS NOI 150 150 157 154 growth 25 bps above our growth 60 bps above our 140 140 peer group. peer group. 130 130 120 120 110 110 100 100 90 90 2000 2004 2008 2012 2016 2000 2004 2008 2012 2016 … While our highly diversified portfolio has contributed to our lower long- term, same-store growth volatility. SS NOI Growth Over Multiple SS Revenue Growth Over Cycles (1) Multiple Cycles (1) UDR Apt. REIT Peer Avg. UDR Apt. REIT Peer Avg. 10% 8% 6% 5% 4% 2% 0% 0% (2)% Coeffic. of Variation: (5)% Coeffic. of Variation: UDR: 0.88 UDR: 1.14 (4)% Peer Avg.: 1.17 Peer Avg.: 1.65 (6)% (10)% 2000 2004 2008 2012 2016 2000 2004 2008 2012 2016 (1) Peer average includes AIV, AVB, CPT, EQR, ESS and MAA. Source: Company/Peer REIT documents and forecasts and SNL.

UDR’S PERFORMANCE OVER TIME 6 We have executed well on all aspects of our business since our initial Strategic Outlook was published in February 2013. This has translated into strong AFFO, dividend and NAV per share growth over time. UDR Per Share Growth (indexed at 100 at YE 2012) (1) AFFO/sh Growth Dividend/sh Growth NAV/sh Growth 150 144 143 140 7.6% AFFO/sh CAGR 141 7.1% Dividend/sh growth CAGR 130 9.4% NAV/sh CAGR 120 110 100 90 2012 2013 2014 2015 2016 2017E And has led to robust total shareholder return (2) . (Indexed at 100 in February 2013) UDR NAREIT Equity Index S&P 500 190 176 170 14.5% UDR TSR CAGR 156 11.3% S&P 500 Index TSR CAGR 150 9.7% NAREIT Equity Index TSR CAGR 147 130 110 90 2012 2013 2014 2015 2016 (1) 2017 AFFO/sh estimate represents mid- point of UDR’s guidance. (2) Data as of February 28, 2017. Source: Company documents and forecasts, Green Street Advisors and NAREIT.

OPERATING EXCELLENCE 7 Our long-term, same-store growth alpha is primarily driven by our robust operating platform. Its strength is founded on accurate forecasting, efficient execution and continuous innovation. % of Quarters Since 4Q 2007 Where Guidance Was Raised or Maintained (1) UDR and our peers raise full-year SS guidance But, we maintain our full-year SS guidance expectations at similar rates over time. expectations at significantly higher rates. 55% 53% 50% 50% 45% 43% 40% 42% 42% 41% 35% 36% 34% 30% FY SS Revenue FY SS NOI FY SS Revenue FY SS NOI UDR Apt. REIT Peer Avg. “Winning” individual markets showcases an enterprise’s ability to execute and its overall operating acumen as it is agnostic to portfolio-level geographic concentration and price point exposure. We “win” more than our fair share of markets. % of UDR’s Markets Where UDR Produced the Highest SS Revenue Growth (2) 49% 60% 44% 40% 50% 36% 34% 32% 31% 29% 40% 21% 30% 20% 23% 10% 22% 15% 20% 20% 20% 14% 18% 12% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 UDR Apt. REIT Peer Avg. (1) Based on full-year SS guidance updates provided on a quarterly basis from 4Q 2007 to 4Q 2016. Peer average includes AIV, AVB, CPT, EQR, ESS and MAA. (2) Winning a market is defined as ranking first among MF peers in year-over-year same-store revenue growth in a quarter. Source: Company and Peer REIT documents and SNL.

OPERATING EXCELLENCE 8 Market revenue and expense growth serve as governors on how quickly we can grow. Beating market growth demands continuous innovation in the form of implementing revenue-enhancing or expense-constraining operating initiatives throughout our platform. For ideas we listen to customers/associates and utilize best practices from a variety of industries. A SAMPLING OF SUCCESSFUL OPERATING INITIATIVES Date Rev. Generating Cumulative Achievement Further Initiative Implemented / Exp. Reducing to-Date Improvement? Reduce Avg. 6 day reduction since ’12, 2012 Expense Yes Days Vacant ~$6.6M in additional NOI R&M costs 10% lower R&M 2012 Expense than trend since YE ’12, Yes Efficiencies ~$3.2M in additional NOI Resident amenity and Package Revenue / reduced site-level hours 2015 Yes Lockers Expense worked, ~$400K in additional NOI Parking 2016 Revenue ~$1.3M in additional NOI Yes Continuous innovation, coupled with an improving portfolio, have contributed to significant margin expansion over time and enhanced our status as a best-in-class operator. Historical UDR Operating Margin 71.4% 72% 71% Current operating margin is 250 bps higher than prior peak, 70% due to an improved portfolio and operating initiatives . 69% 68.9% 68% 67% 66% 66.2% 65% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Company documents.