Why Invest In UDR, Inc.

Tax Treatment

Tax Treatment

Portion Designated As


Record
Date
Payment
Date
Distribution
Per Share
Ordinary
Taxable
Dividend1
Qualified
Ordinary1
Long-Term
Gain2
Unrecaptured
Section 1250
Gain2
Return of
Capital
Common Shares:
1/10/2017 1/31/2017 $0.29500 83.076% 0.883% 10.905% 5.136% 0.000%
4/10/2017 5/1/2017 $0.31000 83.076% 0.883% 10.905% 5.136% 0.000%
7/10/2017 7/31/2017 $0.31000 83.076% 0.883% 10.905% 5.136% 0.000%
10/10/2017 10/31/2017 $0.31000 83.076% 0.883% 10.905% 5.136% 0.000%
Total $1.22500
Preferred Shares Series E:
1/10/2017 1/31/2017 $0.33220 83.076% 0.883% 10.905% 5.136% 0.000%
4/10/2017 5/1/2017 $0.33220 83.076% 0.883% 10.905% 5.136% 0.000%
7/10/2017 7/31/2017 $0.33220 83.076% 0.883% 10.905% 5.136% 0.000%
10/10/2017 10/31/2017 $0.33220 83.076% 0.883% 10.905% 5.136% 0.000%
Total $1.32880

(1) – the sum of these amounts will be reported on Box 1a of Form 1099-DIV
(2) – the sum of these amounts will be reported on Box 2a of Form 1099-DIV

Shareholders of record of the Company's common and preferred stock will receive an Internal Revenue Service Form 1099-DIV from Wells Fargo Shareowner Services, the Company's 2017 dividend paying agent. The form will report the dividends paid and the amounts designated as total ordinary dividends, qualified dividends, total capital gains, unrecaptured section 1250 gains, and nontaxable dividends. If shares were held in "street name" during 2017, the IRS form will be provided by a bank, brokerage firm, or nominee. Because the Company's tax return has not yet been filed for the year ended December 31, 2017, the dividend income tax allocations presented herein have been calculated using the best available information to date.

The tax treatment of these dividends by state and local authorities varies and may not be the same as the IRS's treatment. Because federal and state tax laws affect individuals differently, the Company cannot advise shareholders on how dividends should be reported on their tax returns. The Company encourages shareholders to consult with their own tax advisors with respect to the federal, state and local income tax consequences of these dividends.