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SECURED AND UNSECURED DEBT, NET
 9 Months Ended
Sep. 30, 2025
SECURED AND UNSECURED DEBT, NET  
SECURED AND UNSECURED DEBT, NET

7. SECURED AND UNSECURED DEBT, NET

The following is a summary of our secured and unsecured debt at September 30, 2025 and December 31, 2024 (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Principal Outstanding

​

As of September 30, 2025

​

​

​

​

​

​

​

​

Weighted

​

Weighted

​

​

​

​

​

​

​

​

​

​

Average

​

Average

​

Number of

​

​

September 30, 

​

December 31, 

​

Interest

​

Years to

​

Communities

​

    

2025

    

2024

    

Rate

    

Maturity

    

Encumbered

Secured Debt:

​

​

  

​

​

  

​

  

​

  

​

  

Fixed Rate Debt

 

​

  

 

​

  

 

  

 

  

 

  

Mortgage notes payable (a)

​

$

1,066,710

​

$

1,115,798

 

3.48

%  

3.4

 

18

Deferred financing costs and other non-cash adjustments (b)

​

 

(3,360)

​

 

(3,429)

 

  

 

  

 

  

Total fixed rate secured debt, net

​

 

1,063,350

​

 

1,112,369

 

3.54

%  

3.4

 

18

Variable Rate Debt

​

 

  

​

 

  

 

  

 

  

 

  

Tax-exempt secured notes payable (c)

​

 

27,000

​

 

27,000

 

3.26

%  

6.5

 

1

Deferred financing costs

​

 

(45)

​

 

(38)

 

  

 

  

 

  

Total variable rate secured debt, net

​

 

26,955

​

 

26,962

 

3.29

%  

6.5

 

1

Total Secured Debt, net

​

 

1,090,305

​

 

1,139,331

 

3.53

%  

3.5

 

19

Unsecured Debt:

​

 

  

​

 

  

 

  

 

  

 

  

Variable Rate Debt

​

 

  

​

 

  

 

  

 

  

 

  

Borrowings outstanding under unsecured credit facility due August 2028 (d) (l)

​

 

—

​

 

—

 

—

%  

2.9

 

  

Borrowings outstanding under unsecured commercial paper program due October 2025 (e) (l)

​

​

340,000

​

​

289,900

​

4.32

%  

0.1

​

​

Borrowings outstanding under unsecured working capital credit facility due January 2026 (f)

​

 

15,686

​

 

9,361

 

5.00

%  

0.3

 

  

Term Loan due January 2029 (d) (l)

​

 

175,000

​

 

175,000

 

5.26

%  

3.3

 

  

Fixed Rate Debt

​

 

​

​

 

  

 

  

 

  

 

  

Term Loan due January 2029 (d) (l)

​

​

175,000

​

 

175,000

 

4.04

%  

3.3

​

​

2.95% Medium-Term Notes due September 2026 (l)

​

 

300,000

​

 

300,000

 

2.95

%  

0.9

 

  

3.50% Medium-Term Notes due July 2027 (net of discounts of $123 and $176, respectively) (l)

​

​

299,877

​

​

299,824

​

3.50

%  

1.8

​

​

3.50% Medium-Term Notes due January 2028 (net of discounts of $272 and $361, respectively) (l)

​

​

299,728

​

​

299,639

​

3.50

%  

2.3

​

​

4.40% Medium-Term Notes due January 2029 (net of discounts of $2 and $2, respectively) (g) (l)

​

​

299,998

​

​

299,998

​

4.27

%  

3.3

​

​

3.20% Medium-Term Notes due January 2030 (net of premiums of $5,892 and $6,921, respectively) (h) (l)

​

​

605,892

​

​

606,921

​

3.32

%  

4.3

​

​

3.00% Medium-Term Notes due August 2031 (net of premiums of $7,018 and $7,914, respectively) (i) (l)

​

​

607,018

​

​

607,914

​

3.01

%  

5.9

​

​

2.10% Medium-Term Notes due August 2032 (net of discounts of $241 and $267, respectively) (l)

​

​

399,759

​

​

399,733

​

2.10

%  

6.8

​

​

1.90% Medium-Term Notes due March 2033 (net of discounts of $898 and $989, respectively) (l)

​

​

349,102

​

​

349,011

​

1.90

%  

7.5

​

​

2.10% Medium-Term Notes due June 2033 (net of discounts of $767 and $842, respectively) (l)

​

​

299,233

​

​

299,158

​

2.10

%  

7.7

​

​

5.125% Medium-Term Notes due September 2034 (net of discounts of $2,725 and $2,954, respectively) (j) (l)

​

​

297,275

​

​

297,046

​

4.95

%  

8.9

​

​

3.10% Medium-Term Notes due November 2034 (net of discounts of $802 and $868, respectively) (k) (l)

​

​

299,198

​

​

299,132

​

3.13

%  

9.1

​

​

Deferred financing costs

​

 

(18,902)

​

 

(20,003)

 

  

 

  

 

  

Total Unsecured Debt, net

​

 

4,743,864

​

 

4,687,634

 

3.39

%  

4.8

 

  

Total Debt, net

​

$

5,834,169

​

$

5,826,965

 

3.42

%  

4.6

 

  

​

For purposes of classification of the above table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument.

Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. As of September 30, 2025, secured debt encumbered approximately 12% of UDR’s total real estate owned based upon gross book value (approximately 88% of UDR’s real estate owned based on gross book value is unencumbered).

(a) At September 30, 2025, fixed rate mortgage notes payable are generally due in monthly installments of principal and interest and mature at various dates from November 2025 through February 2031 and carry interest rates ranging from 2.62% to 4.39%.

In July 2025, the Company repaid a $44.3 million fixed rate mortgage at maturity with borrowings from the Company’s unsecured commercial paper program.

The Company will from time to time acquire properties subject to fixed rate debt instruments. In those situations, the Company records the debt at its estimated fair value and amortizes any difference between the fair value and par value to interest expense over the term of the underlying debt instrument.

(b) During the three months ended September 30, 2025 and 2024, the Company had $0.1 million and $0.2 million, respectively, and during the nine months ended September 30, 2025 and 2024, the Company had $0.6 million and $1.0 million, respectively, of amortization of the fair market adjustment of debt assumed in the acquisition of properties inclusive of its fixed rate mortgage notes payable, which was included in Interest expense on the Consolidated Statements of Operations. The unamortized fair market adjustment was a net premium/(discount) of $(0.4) million and $0.2 million at September 30, 2025 and December 31, 2024, respectively.

​

(c) The variable rate mortgage note payable of $27.0 million secures a tax-exempt housing bond issue that matures in March 2032. Interest on this note is payable in monthly installments. As of September 30, 2025, the variable interest rate on the mortgage note was 3.26%.
(d) The Company has a $1.3 billion unsecured revolving credit facility (the “Revolving Credit Facility”) and a $350.0 million unsecured term loan (the “Term Loan”). The credit agreement for these facilities (the “Credit Agreement”) allows the total commitments under the Revolving Credit Facility and the total borrowings under the Term Loan to be increased to an aggregate maximum amount of up to $2.5 billion, subject to certain conditions, including obtaining commitments from one or more lenders. The Revolving Credit Facility has a scheduled maturity date of August 31, 2028, with two six-month extension options, subject to certain conditions. In September 2025, the Company amended the Term Loan to extend the maturity date to January 2029, with two one-year extension options, subject to certain conditions. The Term Loan was previously set to mature on January 31, 2027.

Based on the Company’s current credit rating, the Revolving Credit Facility has an interest rate equal to SOFR plus a margin of 77.5 basis points and a facility fee of 15 basis points, and the Term Loan has an interest rate equal to SOFR plus a margin of 85.0 basis points. Depending on the Company’s credit rating, the margin under the Revolving Credit Facility ranges from 70 to 140 basis points, the facility fee ranges from 10 to 30 basis points, and the margin under the Term Loan ranges from 75 to 160 basis points. In addition, the Credit Agreement allows for the Company in consultation with the sustainability structuring agent to propose key performance indicators with respect to certain environmental, social, and governance goals of the Company, and thresholds or targets with respect thereto, and a related amendment to the Credit Agreement, that if entered into may allow a change in the applicable margin for the Term Loan of up to five basis points.

In September 2025, the Company entered into three interest rate swaps totaling $175.0 million of notional value, which became effective in September 2025, to hedge against interest rate risk on a portion of the Term Loan debt until October 2027. The weighted average interest rate on $175.0 million of the Term Loan debt, inclusive of the impact of interest rate swaps, is 4.04% until October 2027.

​

The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Credit Agreement also includes customary events of default, in certain cases subject to customary periods to cure. The occurrence of an event of default, following the applicable cure period, would permit the

lenders to, among other things, declare the unpaid principal, accrued and unpaid interest and all other amounts payable under the Credit Agreement to be immediately due and payable.

The following is a summary of short-term bank borrowings under the Revolving Credit Facility at September 30, 2025 and December 31, 2024 (dollars in thousands):

​

​

​

​

​

​

​

​

​

    

September 30, 

    

December 31, 

​

​

 

2025

 

2024

​

Total revolving credit facility

​

$

1,300,000

​

$

1,300,000

​

Borrowings outstanding at end of period (1)

​

 

—

​

 

—

​

Weighted average daily borrowings during the period ended

​

 

—

​

 

—

​

Maximum daily borrowings during the period ended

​

 

—

​

 

—

​

Weighted average interest rate during the period ended

​

 

—

%  

 

—

%

Interest rate at end of the period

​

 

—

%  

 

—

%

(1)Excludes $4.3 million and $3.4 million of letters of credit at September 30, 2025 and December 31, 2024, respectively.
(e) The Company has an unsecured commercial paper program. Under the terms of the program, the Company may issue unsecured commercial paper up to a maximum aggregate amount outstanding of $700.0 million. The notes are sold under customary terms in the United States commercial paper market and rank pari passu with all of the Company’s other unsecured indebtedness. The notes are fully and unconditionally guaranteed by the Operating Partnership.

The following is a summary of short-term bank borrowings under the unsecured commercial paper program at September 30, 2025 and December 31, 2024 (dollars in thousands):

​

​

​

​

​

​

​

​

​

    

September 30, 

    

December 31, 

 

​

​

2025

​

2024

 

Total unsecured commercial paper program

 

$

700,000

​

$

700,000

​

Borrowings outstanding at end of period

​

 

340,000

​

 

289,900

​

Weighted average daily borrowings during the period ended

​

 

268,202

​

 

390,237

​

Maximum daily borrowings during the period ended

​

 

405,000

​

 

645,000

​

Weighted average interest rate during the period ended

​

 

4.6

%  

 

5.4

%

Interest rate at end of the period

​

 

4.3

%  

 

4.7

%

​

(f) The Company has a working capital credit facility, which provides for a $75.0 million unsecured revolving credit facility (the “Working Capital Credit Facility”) with a scheduled maturity date of January 12, 2026. Based on the Company’s current credit rating, the Working Capital Credit Facility has an interest rate equal to Adjusted SOFR plus a margin of 77.5 basis points. Depending on the Company’s credit rating, the margin ranges from 70 to 140 basis points.

The following is a summary of short-term bank borrowings under the Working Capital Credit Facility at September 30, 2025 and December 31, 2024 (dollars in thousands):

​

​

​

​

​

​

​

​

​

    

September 30, 

    

December 31, 

 

​

​

2025

​

2024

 

Total working capital credit facility

​

$

75,000

​

$

75,000

​

Borrowings outstanding at end of period

​

 

15,686

​

 

9,361

​

Weighted average daily borrowings during the period ended

​

 

16,736

​

 

15,102

​

Maximum daily borrowings during the period ended

​

 

52,913

​

 

62,077

​

Weighted average interest rate during the period ended

​

 

5.2

%  

 

6.0

%

Interest rate at end of the period

​

 

5.0

%  

 

5.2

%

​

(g) The Company previously entered into forward starting interest rate swaps to hedge against interest rate risk on $150.0 million of the initial $300.0 million issued. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 4.27%.
(h) The Company previously entered into forward starting interest rate swaps and treasury lock to hedge against the interest rate risk of this debt. The all-in weighted average interest rate, inclusive of the impact of the forward starting swaps and treasury locks, was 3.32%.
(i) The Company entered into treasury lock agreements to hedge against interest rate risk on $250.0 million of the $600.0 million aggregate principal amount. The all-in weighted average interest rate, inclusive of the impact of the treasury locks, was 3.01%.
(j) The Company entered into and settled treasury lock arrangements to hedge against all interest rate risk of the debt. The all-in weighted average interest rate, inclusive of the impact of the treasury locks, was 4.95%.
(k) The Company previously entered into forward starting interest rate swaps to hedge against the interest rate risk of this debt. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 3.13%.
(l) The Operating Partnership is the guarantor of this debt.

The aggregate maturities, including amortizing principal payments on secured and unsecured debt, of total debt for the next ten calendar years subsequent to September 30, 2025 are as follows (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

    

Total 

    

Total 

    

Total 

Year

​

Secured Debt

​

Unsecured Debt

​

Debt

2025

​

$

129,235

​

$

340,000

​

$

469,235

2026

​

 

56,672

​

 

315,686

​

 

372,358

2027

​

 

6,939

​

 

300,000

​

 

306,939

2028

​

 

166,526

​

 

300,000

​

 

466,526

2029

​

 

315,811

​

 

650,000

​

 

965,811

2030

​

 

230,597

​

 

600,000

​

 

830,597

2031

​

 

160,930

​

 

600,000

​

 

760,930

2032

​

 

27,000

​

 

400,000

​

 

427,000

2033

​

 

—

​

 

650,000

​

 

650,000

2034

​

 

—

​

 

600,000

​

 

600,000

Thereafter

​

 

—

​

 

—

​

 

—

Subtotal

​

 

1,093,710

​

 

4,755,686

​

 

5,849,396

Non-cash (a)

​

 

(3,405)

​

 

(11,822)

​

 

(15,227)

Total

​

$

1,090,305

​

$

4,743,864

​

$

5,834,169

(a)Includes the unamortized balance of fair market value adjustments, premiums/discounts and deferred financing costs. The Company amortized $1.3 million and $1.2 million during the three months ended September 30, 2025 and 2024, respectively, and $3.8 million and $3.7 million during the nine months ended September 30, 2025 and 2024, respectively, of deferred financing costs into Interest expense.

We were in compliance with the covenants of our debt instruments at September 30, 2025.