UDR (UDR) risk factors, FY2025 10-K

Risks Related to Our Real Estate Investments and Our Operations

1. 01Unfavorable Apartment Market and Economic Conditions Could Adversely Affect Occupancy Levels, Rental Revenues and the Value of Our Real Estate Assets
2. 02We May Be Unable to Renew Leases or Relet Apartment Units as Leases Expire, or the Terms of Renewals or New Leases May Be Less Favorable Than Current Leases
3. 03We Face Certain Risks Related to Our Retail and Commercial Space
4. 04We Face Risks Related to Inflation/Deflation24% rewritten
5. 05We Are Subject to Certain Risks Associated with Selling Apartment Communities, Which Could Limit Our Operational and Financial Flexibility
6. 06Competition Could Limit Our Ability to Lease Apartment Homes or Increase or Maintain Rents
7. 07We May Not Realize the Anticipated Benefits of Past or Future Acquisitions, and the Failure to Integrate Acquired Communities and New Personnel Successfully Could Create Inefficiencies
8. 08Competition Could Adversely Affect Our Ability to Acquire Properties
9. 09Development and Construction Risks Could Impact Our Profitability26% rewritten
10. 10An Epidemic, Pandemic or Other Health Crisis, and Measures Intended to Prevent the Spread of Such an Event, Could Have a Material Adverse Effect on our Business, Results of Operations, Cash Flows and Financial Condition
11. 11Bankruptcy or Defaults of Our Counterparties Could Adversely Affect Our Performance
12. 12Property Ownership Through Partnerships and Joint Ventures May Limit Our Ability to Act Exclusively in Our Interest
13. 13We Could Incur Significant Insurance Costs and Some Potential Losses May Not Be Adequately Covered by Insurance Reserves
14. 14Failure to Succeed in New Markets May Limit Our Growth
15. 15Failure to Succeed with New Initiatives May Limit Our Ability to Grow NOI27% rewritten
16. 16Potential Liability for Environmental Contamination Could Result in Substantial Costs
17. 17Our Properties May Contain or Develop Harmful Mold or Suffer from Other Indoor Air Quality Issues, Which Could Lead to Liability for Adverse Health Effects or Property Damage or Cost for Remediation
18. 18Compliance or Failure to Comply with the Americans with Disabilities Act of 1990 or Other Safety Regulations and Requirements Could Result in Substantial Costs33% rewritten
19. 19Compliance with or Changes in Real Estate Tax and Other Laws and Regulations Could Adversely Affect Our Funds from Operations and Our Ability to Make Distributions to Stockholders
20. 20Risk of Litigation54% rewritten
21. 21Risk of Damage from Catastrophic Weather and Natural Events
22. 22Risk of Potential Climate Change
23. 23Risk of Earthquake Damage
24. 24Risk of Accidental Death or Injury Due to Fire, Natural Disasters or Other Hazards
25. 25Actual or Threatened Terrorist Attacks and Other Acts of Violence, Destruction or War May Have an Adverse Effect on Our Business and Operating Results and Could Decrease the Value of Our Assets
26. 26Mezzanine Loan or Other Loan Assets Involve Greater Risks of Loss than Senior Loans Secured by Income-Producing Properties
27. 27Risk Related to Preferred Equity Investments
28. 28Risks Related to Ground Leases
29. 29We May Experience a Decline in the Fair Value of Our Assets and Be Forced to Recognize Impairment Charges, Which Could Adversely Impact Our Financial Condition, Liquidity and Results of Operations and the Market Price of Our Common Stock
30. 30Any Material Weaknesses Identified in Our Internal Control Over Financial Reporting Could Have an Adverse Effect on the Market Price of Our Common Stock
31. 31A Breach of Information Technology Systems On Which We Rely Could Materially and Adversely Impact Our Business, Financial Condition, Results of Operations and Reputation
32. 32Our Business and Operations Would Suffer in the Event of Information Technology System Failures
33. 33A Failure to Keep Pace with Developments in Technology Could Impair our Operations or Competitive Position
34. 34Social Media Presents Risks
35. 35Our Success Depends on Our Senior Management
36. 36Changes in U.S. Accounting Standards May Materially and Adversely Affect Our Reported Results of Operations
37. 37Third-Party Expectations Relating to Environmental, Social and Governance Factors May Impose Additional Costs and Expose Us to New Risks

Risks Related to Our Indebtedness and Financings

1. 38Changing Interest Rates Could Increase Interest Costs and Adversely Affect Our Cash Flows and the Market Price of Our Common Stock
2. 39Insufficient Cash Flow Could Affect Our Debt Financing and Create Refinancing Risk
3. 40Failure to Generate Sufficient Income Could Impair Debt Service Payments and Distributions to Stockholders
4. 41Our Debt Level May Be Increased
5. 42Financing May Not Be Available and Could Be Dilutive
6. 43Failure To Maintain Our Current Credit Ratings Could Adversely Affect Our Cost of Funds, Related Margins, Liquidity, and Access to Capital Markets
7. 44Disruptions in Financial Markets May Adversely Impact the Availability and Cost of Credit and Have Other Adverse Effects on Us and the Market Price of Our Common Stock
8. 45A Change in U.S. Government Policy or Support Regarding Fannie Mae or Freddie Mac Could Have a Material Adverse Impact on Our Business
9. 46The Soundness of Financial Institutions Could Adversely Affect Us
10. 47Interest Rate Hedging Contracts May Be Ineffective and May Result in Material Charges

Risks Related to Tax Laws

1. 48We Would Incur Adverse Tax Consequences if We Failed to Qualify as a REIT
2. 49Dividends Paid by REITs Generally Do Not Qualify for Reduced Tax Rates
3. 50We Conduct a Portion of Our Business Through Taxable REIT Subsidiaries, Which Are Subject to Certain Tax Risks
4. 51REIT Distribution Requirements Limit Our Available Cash
5. 52Certain Property Transfers May Generate Prohibited Transaction Income, Resulting in a Penalty Tax on Gain Attributable to the Transaction
6. 53Changes to the U.S. Federal Income Tax Laws, including the Enactment of Certain Tax Reform Measures, Could Have an Adverse Impact on Our Business and Financial Results
7. 54We May Be Adversely Affected by Changes in State and Local Tax Laws and May Become Subject to Tax Audits from Time to Time
8. 55The Operating Partnership and the DownREIT Partnership Intend to Qualify as Partnerships, but Cannot Guarantee That They Will Qualify
9. 56Qualifying as a REIT Involves Highly Technical and Complex Provisions of the Code

Risks Related to Our Organization and Ownership of Our Stock

1. 57Changes in Market Conditions and Volatility of Stock Prices Could Adversely Affect the Market Price of Our Common Stock
2. 58We May Change the Dividend Policy for Our Common Stock in the Future
3. 59Maryland Law May Limit the Ability of a Third Party to Acquire Control of Us, Which May Not be in Our Stockholders’ Best Interests
4. 60Limitations on Share Ownership and Limitations on the Ability of Our Stockholders to Effect a Change in Control of Our Company Restrict the Transferability of Our Stock and May Prevent Takeovers That are Beneficial to Our Stockholders