udr_Ex99

udr_Ex99_1


				Exhibit 99.1
Press Release
DENVER, CO – October 29, 2018				Contact: Chris Van Ens
				Phone: 720.348.7762

UDR ANNOUNCES THIRD QUARTER 2018 RESULTS AND INCREASES FULL-YEAR GUIDANCE RANGES

UDR, Inc. (the “Company”) Third Quarter 2018 Highlights:

Net income per share was $0.07, Funds from Operations (“FFO”) per share was $0.49, FFO as Adjusted (“FFOA”) per share was $0.49, and Adjusted Funds from Operations (“AFFO”) per share was $0.44.

Net income attributable to common stockholders was $17.6 million as compared to $15.3 million in the prior year period. The increase was primarily due to higher income from operating properties.

Year-over-year same-store (“SS”) revenue, expense and net operating income (“NOI”) growth for the quarter were 3.8 percent, 3.5 percent and 3.9 percent, respectively.

The Company’s $808.5 million pro-rata share of development projects in lease-up continued to realize strong demand, ending the third quarter at a weighted average 77.9 percent leased.

Invested in three Developer Capital Program (“DCP”) projects for a total commitment of $73.1 million. The communities are located in Philadelphia, PA, Orlando, FL, and Santa Monica, CA.

Entered into a contract to sell Circle Towers, a 46 year old, 604-home community located in Fairfax County, VA, for $160.0 million. The transaction is scheduled to close during the fourth quarter subject to customary closing conditions.

Subsequent to quarter end, issued $300.0 million of 10-year unsecured debt at an effective 4.27 percent coupon and intends to use the proceeds to prepay $195.8 million of 5.28 percent secured debt originally scheduled to mature in October and December 2019 and for general corporate purposes.

Increased and/or tightened full-year 2018 earnings and same-store growth guidance ranges:

Increased net income per share guidance by $0.18 at the midpoint to $0.70 to $0.71.

Increased FFOA per share guidance by $0.01 at the midpoint to $1.95 to $1.96.

Tightened AFFO per share guidance to $1.79 to $1.80.

Increased SS revenue, expense and NOI growth guidance ranges by 25 basis points at the low-ends to 3.25 to 3.50 percent.


	Q3 2018	Q3 2017	YTD 2018	YTD 2017
Net income per common share, diluted	$0.07	$0.06	$0.44	$0.18
Conversion from GAAP share count	(0.006)	(0.005)	(0.041)	(0.017)
Net gain on the sale of depreciable real estate owned	-	(0.008)	(0.237)	(0.051)
Cumulative effect of change in accounting principle	-	-	(0.007)	-
Depreciation and amortization	0.418	0.411	1.242	1.225
Noncontrolling interests and preferred dividends	0.009	0.008	0.047	0.025
FFO per common share and unit, diluted	$0.49	$0.46	$1.44	$1.37
Cost/(benefit) associated with debt extinguishment and other	0.002	-	0.002	0.020
Acquisition-related costs/(fees)	-	0.001	-	0.001
Net gain on the sale of non-depreciable real estate owned	-	-	-	(0.005)
Legal and other costs	0.002	-	0.004	-
Casualty-related charges/(recoveries), including JVs, net	0.002	0.007	0.009	0.010
FFOA per common share and unit, diluted	$0.49	$0.47	$1.46	$1.39
Recurring capital expenditures	(0.050)	(0.043)	(0.116)	(0.102)
AFFO per common share and unit, diluted	$0.44	$0.43	$1.34	$1.29

A reconciliation of FFO, FFOA and AFFO to GAAP Net income attributable to common stockholders can be found on Attachment 2 of the Company’s third quarter Supplemental Financial Information.

Operations

In the third quarter, total revenue increased by $15.1 million year-over-year, or 6.0 percent, to $266.1 million. This increase was primarily attributable to growth in revenue from operating and lease-up communities.

In the third quarter, same-store NOI increased 3.9 percent year-over-year, driven by same-store revenue growth of 3.8 percent and same-store expense growth of 3.5 percent. Weighted average same-store physical occupancy increased by 30 basis points year-over-year to 96.9 percent. The third quarter annualized rate of turnover was 63.4 percent, representing a 40 basis point increase year-over-year.

Summary of Same-Store Results Third Quarter 2018 versus Third Quarter 2017


Region	Revenue Growth	Expense Growth/ (Decline)	NOI Growth/ (Decline)	% of Same-Store Portfolio(1)	Same-Store Occupancy(2)	Number of Same-Store Homes(3)
West	4.4%	(0.0)%	6.0%	45.4%	96.5%	13,942
Mid-Atlantic	3.3%	4.1%	3.0%	22.3%	97.2%	9,876
Northeast	1.7%	6.8%	(0.6)%	15.2%	97.3%	3,493
Southeast	5.8%	9.3%	4.3%	12.7%	96.9%	7,683
Southwest	2.2%	1.1%	3.0%	4.4%	97.2%	3,313
Total	3.8%	3.5%	3.9%	100.0%	96.9%	38,307

(1)Based on Q3 2018 SS NOI.

(2)Weighted average same-store physical occupancy for the quarter.

(3)During the third quarter, 38,307 apartment homes were classified as same-store. The Company defines QTD SS Communities as those communities stabilized for five full consecutive quarters. These communities were owned and had stabilized occupancy and operating expenses as of the beginning of the quarter in the prior year, were not in process of any substantial redevelopment activities, and were not held for disposition.

In the third quarter, sequential same-store NOI decreased by 0.2 percent, driven by same-store revenue growth of 1.2 percent and same-store expense growth of 4.9 percent. Weighted average same-store physical occupancy decreased by 10 basis points sequentially to 96.9 percent.

Year-to-date, for the nine months ended September 30, 2018, total revenue increased by $36.3 million year-over-year, or 4.9 percent, to $779.2 million. This increase was primarily attributable to growth in revenue from operating and lease-up communities.

Year-to-date, for the nine months ended September 30, 2018, same-store NOI increased 3.4 percent year-over-year, driven by same-store revenue growth of 3.4 percent and same-store expense growth of 3.4 percent. Weighted average same-store physical occupancy increased by 30 basis points year-over-year to 96.9 percent. The year-to-date annualized rate of turnover was 52.5 percent, representing a 100 basis point decrease year-over-year.

Summary of Same-Store Results Year-To-Date 2018 versus Year-To-Date 2017


Region	Revenue Growth	Expense Growth	NOI Growth/ (Decline)	% of Same-Store Portfolio(1)	Same-Store Occupancy(2)	Number of Same-Store Homes(3)
West	4.3%	0.8%	5.6%	44.8%	96.5%	13,698
Mid-Atlantic	2.8%	4.5%	2.0%	22.8%	97.4%	9,876
Northeast	1.0%	6.5%	(1.3)%	15.8%	97.2%	3,493
Southeast	5.0%	3.7%	5.6%	12.7%	97.0%	7,683
Southwest	1.6%	4.8%	(0.4)%	3.9%	96.9%	2,923
Total	3.4%	3.4%	3.4%	100.0%	96.9%	37,673

(1)Based on YTD 2018 SS NOI.

(2)Weighted average same-store physical occupancy for YTD 2018.

(3)For the nine months ended September 30, 2018, 37,673 apartment homes were classified as same-store. The Company defines YTD SS Communities as those communities stabilized for two full consecutive calendar years. These communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior year, were not in process of any substantial redevelopment activities, and were not held for disposition.

Development Activity

At the end of the third quarter, the Company’s development pipeline totaled $808.5 million at its pro-rata ownership interest, and was 98 percent funded. All of the Company’s development communities were in lease-up as of the end of the third quarter. The development pipeline is currently expected to produce a weighted average spread between stabilized yields and current market cap rates of 150 to 200 basis points.

DCP Activity

At the end of the third quarter, the Company’s DCP investment, including accrued return, totaled $222.7 million. Activity during the quarter consisted of:

Investment in three DCP projects for a total capital commitment of $73.1 million. The communities are located in Philadelphia, PA, Orlando, FL, and Santa Monica, CA, will include 867 homes and have a weighted average yield and term to maturity of 10.0 percent and 4.9 years.

Transaction Activity

During the quarter, the Company entered into a contract to sell Circle Towers, a 46 year old, 604-home community located in Fairfax County, VA, for $160.0 million or $264,900 per home. During the third quarter the community had a weighted average monthly revenue per occupied home of $2,049. The transaction is scheduled to close during the fourth quarter subject to customary closing conditions.

Capital Markets and Balance Sheet Activity

Balance sheet activity during the third quarter included:

The Company amended and restated its $1.1 billion revolving credit facility and its $350.0 million term loan outstanding under the same agreement. The amendment extends the maturity dates on the revolver and term loan to January and September 2023, respectively. In addition, the spread over LIBOR was reduced by 7.5 basis points and 5.0 basis points for the revolver and term loan, respectively.

The Company refinanced $79.1 million of consolidated secured debt with a weighted average rate of 5.04 percent within its DownREIT partnership that was originally scheduled to mature in 2018 and 2019 into an $80.0 million secured 10-year fixed-rate loan at a rate of 4.08 percent.

Third quarter UDR/MetLife Joint Venture capital markets activity included refinancing the construction loan associated with Vitruvian West into a $41.3 million secured 10-year fixed-rate loan at a rate of 4.12 percent.

Subsequent to quarter end, the Company issued $300.0 million of 10-year unsecured debt at a 4.40 percent coupon. Proceeds are intended to be used to prepay $195.8 million of 5.28 percent secured debt originally scheduled to mature in October and December 2019 and for general corporate purposes. The Company had previously entered into a hedging instrument that lowered the effective coupon on the unsecured issuance to 4.27 percent.

At September 30, 2018, the Company had approximately $710.1 million of availability, through a combination of cash and undrawn capacity, on its credit facilities.

The Company’s total indebtedness at September 30, 2018 was $3.8 billion. The Company ended the quarter with fixed-rate debt representing 84.4 percent of its total debt, a weighted average interest rate of 3.6 percent and a weighted average maturity of 4.9 years. The Company’s consolidated leverage was 33.7 percent versus 33.5 percent a year ago, its consolidated net‑debt-to-EBITDAre was 5.7x versus 5.9x a year ago and its consolidated fixed charge coverage ratio was 4.5x versus 4.4x a year ago.

Dividend

As previously announced, the Company’s Board of Directors declared a regular quarterly dividend on its common stock for the third quarter of 2018 in the amount of $0.3225 per share. The dividend will be paid in cash on October 31, 2018 to UDR common stock shareholders of record as of October 10, 2018. The third quarter 2018 dividend will represent the 184th consecutive quarterly dividend paid by the Company on its common stock.

Outlook

For the fourth quarter of 2018, the Company has established the following earnings guidance ranges:


Net income per share		$0.26 to $0.27

FFO per share		$0.48 to $0.49

FFO as Adjusted per share		$0.49 to $0.50

AFFO per share		$0.45 to $0.46

For the full-year 2018, the Company has revised its previously provided earnings guidance ranges:


	Updated Guidance	Prior Guidance
Net income per share	$0.70 to $0.71	$0.51 to $0.54

FFO per share	$1.92 to $1.93	$1.92 to $1.95

FFO as Adjusted per share	$1.95 to $1.96	$1.93 to $1.96

AFFO per share	$1.79 to $1.80	$1.78 to $1.81

For the full-year 2018, the Company has increased its previously provided same-store growth guidance ranges:


	Updated Guidance	Prior Guidance
Revenue	3.25% to 3.50%	3.00% to 3.50%

Expense	3.25% to 3.50%	3.00% to 3.50%

Net operating income	3.25% to 3.50%	3.00% to 3.50%

Additional assumptions for the Company’s third quarter and full-year 2018 guidance can be found on Attachment 15 of the Company’s third quarter Supplemental Financial Information. A reconciliation of FFO per share, FFO as Adjusted per share and AFFO per share to GAAP Net income per share can be found on Attachment 16(D) of the Company’s third quarter Supplemental Financial Information. Non-GAAP financial measures and other terms, as used in this earnings release, are defined and further explained on Attachments 16(A) through 16(D), “Definitions and Reconciliations,” of the Company’s third quarter Supplemental Financial Information.

Supplemental Information

The Company offers Supplemental Financial Information that provides details on the financial position and operating results of the Company which is available on the Company's website at ir.udr.com.

Conference Call and Webcast Information

UDR will host a webcast and conference call at 1:00 p.m. Eastern time on October 30, 2018 to discuss third quarter results. The webcast will be available on UDR's website at ir.udr.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.

To participate in the teleconference dial 877-705-6003 for domestic and 201-493-6725 for international. A passcode is not necessary.

A replay of the conference call will be available through November 30, 2018, by dialing 844-512-2921 for domestic and 412-317-6671 for international and entering the confirmation number, 13683794, when prompted for the passcode.

A replay of the call will also be available for 30 days on UDR's website at ir.udr.com.

Full Text of the Earnings Report and Supplemental Data

Internet -- The full text of the earnings report and Supplemental Financial Information will be available on the Company’s website at ir.udr.com.

Mail -- For those without Internet access, the third quarter 2018 earnings report and Supplemental Financial Information will be available by mail or fax, on request. To receive a copy, please call UDR Investor Relations at 720-348-7762.

Forward Looking Statements

Certain statements made in this press release 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. Such statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from the results of operations or plans expressed or implied by such forward‑looking statements. Such factors include, among other things, unfavorable changes in the apartment market, changing economic conditions, the impact of inflation/deflation on rental rates and property operating expenses, expectations concerning the availability of capital and the stability of the capital markets, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments and redevelopments, delays in completing lease-ups on schedule or at expected rent and occupancy levels, 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 joint ventures and partnerships with third parties, expectations that automation 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 press release, 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.

About UDR, Inc.

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of September 30, 2018, UDR owned or had an ownership position in 49,464 apartment homes including 932 homes under development or in its Developer Capital Program – West Coast Development Joint Venture. For over 46 years, UDR has delivered long-term value to shareholders, the best standard of service to residents and the highest quality experience for associates.