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JOINT VENTURES AND PARTNERSHIPS | 6 Months Ended
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Jun. 30, 2025
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 June 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 | ​ | Six Months Ended
​ |  | June 30, |  | June 30, | ​ | June 30, |  | ​ | December 31, |  |  | June 30, |  | December 31, | ​ | June 30, | ​ | June 30,
Joint Ventures |  | 2025 |  | 2025 | ​ | 2025 |  | 2024 |  |  | 2025 |  | 2024 | ​ | 2025 |  | 2024 | ​ | 2025 |  | 2024
Operating: | ​ |  | ​ |  | ​ |  | ​ | ​ |  |  | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
UDR/MetLife (a) | ​ | 13 | ​ | 2,837 | ​ | 50.2 | % | ​ | 50.2 | % | ​ | $ | 198,534 | ​ | $ | 206,308 | ​ | $ | (1,135) | ​ | $ | (1,408) | ​ | $ | (2,176) | ​ | $ | (3,254)
UDR/LaSalle | ​ | 5 | ​ | 1,590 | ​ | 51.0 | % | ​ | 51.0 | % | ​ | ​ | 262,912 | ​ | ​ | 267,562 | ​ | ​ | (926) | ​ | ​ | (2,793) | ​ | ​ | (1,961) | ​ | ​ | (5,671)
Total Joint Ventures | ​ | 18 |  | 4,427 | ​ |  |  | ​ |  | ​ | ​ | $ | 461,446 | ​ | $ | 473,870 | ​ | $ | (2,061) | ​ | $ | (4,201) | ​ | $ | (4,137) | ​ | $ | (8,925)
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Number of | ​ | Apartment | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Income/(loss) from investments
​ | ​ | Commitments | ​ | Homes | ​ | Weighted | ​ | ​ | ​ | ​ | ​ | Investment at | ​ | Three Months Ended | ​ | Six Months Ended
Debt and Preferred Equity Program |  | June 30, | ​ | June 30, | ​ | Average | ​ |  | UDR |  | June 30, |  | December 31, |  | June 30, | ​ | June 30,
and Real Estate Technology Investments (b) |  | 2025 | ​ | 2025 | ​ | Rate | ​ |  | Commitment (c) |  | 2025 |  | 2024 |  | 2025 |  | 2024 |  | 2025 |  | 2024
Preferred equity investments: |  |  |  |  | ​ | ​ | ​ |  | ​ | ​ | ​ |  |  | ​ |  |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ |
Operating | ​ | 11 | ​ | 6,158 | ​ | 9.7 | % | ​ | $ | 315,498 | ​ | $ | 344,975 | ​ | $ | 328,865 | ​ | $ | 4,605 | ​ | $ | 6,331 | ​ | $ | 9,413 | ​ | $ | 12,454
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Real estate technology and sustainability investments: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Real estate technology and sustainability investments | ​ | N/A | ​ | N/A | ​ | N/A | ​ | ​ | $ | 86,000 | ​ | ​ | 67,081 | ​ | ​ | 57,344 | ​ | ​ | (158) | ​ | ​ | (189) | ​ | ​ | 1,511 | ​ | ​ | 5,457
Total Debt and Preferred Equity Program and Real Estate Technology and Sustainability Investments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 412,056 | ​ | ​ | 386,209 | ​ | ​ | 4,447 | ​ | ​ | 6,142 | ​ | ​ | 10,924 | ​ | ​ | 17,911
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Sold joint ventures and other investments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | 52,105 | ​ | ​ | 1,243 | ​ | ​ | 2,105 | ​ | ​ | 2,656 | ​ | ​ | 4,145
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total investment in and advances to unconsolidated joint ventures, net (a) | ​ | ​ | ​ | $ | 873,502 | ​ | $ | 912,184 | ​ | $ | 3,629 |  | $ | 4,046 | ​ | $ | 9,443 |  | $ | 13,131
(a) | As of June 30, 2025 and December 31, 2024, the Company’s negative investment in one UDR/MetLife community of $6.3 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 six months ended June 30, 2025, the Company entered into and funded one new preferred equity investment and one preferred equity investment was 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 will earn 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.
(c) | Represents UDR’s maximum funding commitment only and therefore excludes other activity such as income from investments.
​ As of June 30, 2025 and December 31, 2024, the Company had deferred fees of $7.2 million and $7.6 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 $2.4 million and $2.0 million for the three months ended June 30, 2025 and 2024, respectively, and $4.5 million and $4.0 million for the six months ended June 30, 2025 and 2024, 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 and six months ended June 30, 2025 and 2024. Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of June 30, 2025 and December 31, 2024 (dollars in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2025 |  | 2024
Total real estate, net |  | $ | 3,045,542 |  | $ | 3,114,375
Investments, at fair value | ​ | ​ | 408,920 | ​ | ​ | 372,478
Cash and cash equivalents | ​ |  | 74,800 | ​ |  | 47,932
Other assets | ​ | ​ | 128,979 | ​ |  | 147,344
Total assets |  | $ | 3,658,241 |  | $ | 3,682,129
​ | ​ | ​ | ​ | ​ | ​ | ​
Third party debt, net | ​ | $ | 2,031,093 | ​ | $ | 2,060,135
Accounts payable and accrued liabilities | ​ | ​ | 164,118 | ​ | ​ | 158,505
Total liabilities |  | ​ | 2,195,211 |  | ​ | 2,218,640
Total equity |  | $ | 1,463,030 |  | $ | 1,463,489
​ 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 six months ended June 30, 2025 and 2024 (dollars in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Six Months Ended
​ | ​ | June 30, | ​ | June 30,
​ |  | 2025 |  | 2024 |  | 2025 |  | 2024
Total revenues |  | $ | 93,206 |  | $ | 78,013 |  | $ | 183,327 |  | $ | 154,269
Property operating expenses | ​ |  | 42,260 | ​ |  | 35,793 | ​ |  | 84,680 | ​ |  | 70,728
Real estate depreciation and amortization | ​ |  | 40,099 | ​ |  | 38,091 | ​ |  | 81,072 | ​ |  | 75,053
Operating income/(loss) | ​ |  | 10,847 | ​ | ​ | 4,129 | ​ |  | 17,575 | ​ | ​ | 8,488
Interest expense | ​ |  | (36,017) | ​ |  | (25,571) | ​ |  | (78,296) | ​ |  | (50,108)
Net unrealized/realized gain/(loss) on held investments | ​ | ​ | 1,018 | ​ | ​ | 5,349 | ​ | ​ | 16,630 | ​ | ​ | 32,749
Other income/(loss) | ​ | ​ | 344 | ​ | ​ | (1,520) | ​ | ​ | 3,386 | ​ | ​ | (3,348)
Net income/(loss) |  | $ | (23,808) |  | $ | (17,613) |  | $ | (40,705) |  | $ | (12,219)
​

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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