Why Invest In UDR, Inc.

Press Release

UDR Announces Fourth Quarter 2007 Results Names Denver New Corporate Headquarters

-- Recorded quarterly FFO of $0.43 before a one-time realignment charge of $0.025.

-- Registered total monthly income per home of $1,163.

-- Achieved 8.0% same-community net operating income growth.

-- Realized 69.8% same-community operating margin.

Company Release - 1/29/2008 5:57 PM ET

DENVER--(BUSINESS WIRE)--

UDR, Inc. (NYSE: UDR) today reported Funds From Operations ("FFO") of $58.3 million for the quarter ended December 31, 2007, versus $63.3 million for the same period a year ago. The results produced FFO of $0.40 per share (diluted), compared to FFO of $0.42 per share (diluted) for the same period a year ago. 2007 fourth quarter results include a one-time realignment charge of $3.6 million, or $0.025 per share.

"Fourth quarter property operating performance was outstanding with 8.0% growth in same-community net operating income and an operating margin of almost 70%, the highest level we have achieved," stated Thomas W. Toomey, President and Chief Executive Officer. "Our same-store results reflect UDR's transformed portfolio, consistent with today's announced sale of 25,684 homes for $1.7 billion. The sale dramatically accelerates our portfolio transformation and affords greater growth potential. I believe we are entering 2008 with positive momentum and am confident that this will be a great year for UDR."

Headquarters Location, Realignment Charge

The Company's executive offices have been located in Denver, Colorado, since 2001. Today it announced that it is establishing Denver as its corporate headquarters and is realigning resources to improve efficiencies. A charge of $3.6 million was recorded in the fourth quarter for severance payments, relocation expenses, and other related costs.

"The realignment charge is the result of a corporate-wide review to optimize our organization," stated Mr. Toomey. "The changes we are making will improve efficiency and centralize job functions in fewer locations. We expect to realize savings from overhead reductions, improved efficiencies, and process improvements."

      Portfolio Operating Performance and Same-community Results
             Fourth Quarter 2007 vs. Fourth Quarter 2006
----------------------------------------------------------------------

                                                % of Same-    Total
                        Revenue Expense  NOI     community   Community
        Region          Growth  Growth  Growth Portfolio(1)  Homes(2)
----------------------- ------- ------- ------ ------------ ----------

Western                    6.2%    3.0%   7.6%        49.3%     13,064
Mid-Atlantic               4.8%   -1.8%   7.7%        24.5%      8,181
Southeastern               1.4%   -9.2%   7.9%        23.1%      9,228
Southwestern               5.9%  -12.0%  15.4%         3.1%      1,469
----------------------------------------------------------------------
Total                      4.7%   -2.2%   8.0%       100.0%     31,942
======================================================================

(1) Based on YTD 2007 NOI
(2) During the fourth quarter, 31,942 apartment homes, or 48% of total
 apartment homes, were classified as same-community. On January 29,
 2008 the Company announced that it has entered into a definitive
 agreement to sell 25,684 apartment homes. These homes were classified
 in discontinued operations for the fourth quarter, 2007. The Company
 defines same-community as all multifamily communities owned and
 stabilized for at least one year as of the beginning of the most
 recent quarter.
                        Same-community Results
 ($ in thousands, except rents & fees and total income per occupied
                                 home)
----------------------------------------------------------------------

                                      4th Qtr '07 4th Qtr '06 % Change
                                      ----------- ----------- --------
Rent and other income                    $106,450    $102,681     3.7%
Concessions                                   775       1,512   -48.7%
Bad debt                                      463         666   -30.5%
----------------------------------------------------------------------
Total income                              105,212     100,503     4.7%
Expenses                                   31,739      32,464    -2.2%
----------------------------------------------------------------------
Net operating income                       73,473      68,039     8.0%
======================================================================

Total income per occupied home             $1,163      $1,110     4.8%
Rents & fees per occupied home              1,112       1,065     4.4%
Average physical occupancy                  94.4%       94.5%  -10 bps
Operating margin                            69.8%       67.7%  210 bps
Resident credit loss, % of effective                           -30 bps
 rent                                        0.4%        0.7%

Comparing fourth quarter 2007 to fourth quarter 2006 on a same-
 community basis, 86% of the mature markets generated positive revenue
 growth.
          Same-community Results, Quarter/Sequential Quarter
 ($ in thousands, except rents & fees and total income per occupied
                                 home)
----------------------------------------------------------------------

                                      4th Qtr '07 3rd Qtr '07 % Change
                                      ----------- ----------- --------
Rent and other income                    $106,450    $106,647    -0.2%
Concessions                                   775       1,237   -37.3%
Bad debt                                      463         698   -33.7%
----------------------------------------------------------------------
Total income                              105,212     104,712     0.5%
Expenses                                   31,739      33,412    -5.0%
----------------------------------------------------------------------
Net operating income                       73,473      71,300     3.0%
======================================================================

Total income per occupied home             $1,163      $1,150     1.1%
Rents & fees per occupied home              1,112       1,100     1.1%
Average physical occupancy                  94.4%       95.0%  -60 bps
Operating margin                            69.8%       68.1%  170 bps
Resident credit loss, % of effective                           -30 bps
 rent                                        0.4%        0.7%

Corporate Strategy

The Company continued to execute on its strategic plan which encompasses the following four strategies:

    --  Strengthen the portfolio

    --  Create value with RE3

    --  Innovate with Operations 2.0

    --  Source low cost capital

    $1.7 Billion Portfolio Sale announced January 29, 2008

Today the Company announced that it has entered into a contract to sell 25,684 apartment homes in 86 communities for $1.7 billion dollars. The transaction is expected to close on or about March 3, 2008 at which time the Company will receive $1.5 billion in cash and will provide the buyer a note in the principal amount of $200 million. The note matures on the same date as buyer's senior financing, may be pre-paid 14 months from the date of the note, bears interest at a fixed rate of 7.5% per annum and is secured by a pledge and security agreement and a guarantee. Closing is subject to customary closing conditions. Upon completion of the transaction, the Company will own 40,183 homes in 146 communities.

The portfolio sale dramatically accelerates the Company's transformation to focus on markets that have the best growth prospects based on favorable job formation and low single-family home affordability. Upon completion of the sale, the Company expects that approximately 90% of its net operating income will be generated from homes located in markets on the Pacific Coast, the Virginia - Washington, D.C., corridor and Florida.

The Company believes that average 2008 total monthly income per home for the 40,183 homes it owns upon completion of the sale will exceed $1,200, operating margin will exceed 70 percent, and recurring capital expenditures will be 35 percent less per home than the portfolio being sold when measured as a percent of net operating income. The average age of this remaining portfolio is approximately 15 years.

With this action the Company captures the disparity in value between private and public markets. The Company plans to invest $500 to $600 million of the proceeds in acquisitions, of which $320 million are currently under contract. The Company expects to use $500 to $600 million of proceeds to reduce debt. The $300 to $500 million of remaining cash proceeds and $200 million from the note receivable are expected to be used to fund additional acquisitions, repurchase stock and for a potential special dividend. The Company plans to maintain its current quarterly dividend of $0.33 per share.

The Board of Directors has authorized increasing its share-repurchase program by 15 million shares, effective immediately. This increase gives the Company the ability to repurchase a total of approximately 22 million shares.

The press release announcing the sale is at the Company's website, www.udr.com.

    Fourth Quarter Results - Execution of Corporate Strategy

    Strengthen our Portfolio

The Company is concentrating its apartment communities in markets where job growth expectations are above the national average, home affordability is low, and the demand/supply ratio for multi-family housing is favorable. Fourth quarter activity included the purchase of 772 homes in three apartment communities for $205.5M. These acquisitions included:

-- Sullivan Place, a 498-home community located in Alexandria, Virginia. The Company paid $105.0 million or $210,843 per home for this community which was purchased subject to a 99-year ground lease. The homes were completed in late 2007 and include 10,000 square feet of retail. The homes average 978 square feet and will generate a average monthly income of approximately $1,700 per home at stabilization. This acquisition will make the D.C. Metro area the second largest contributor of NOI within the Company's portfolio.

-- Tierra del Rey, a 170-home community located in Marina Del Rey, California. The purchase price was $76.5 million or $450,000 per home. The community was completed in 1999 and will receive kitchen and bath upgrades. The property is expected to generate monthly income of approximately $2,500 per home. The Company, in a joint venture with JPI, is developing a 298 apartment home community located within three blocks of this acquisition. Completion is scheduled in the third quarter of 2008.

-- Crest Marin, a 104-home community, located in San Rafael, California. This property was purchased for $24.0 million or $230,769 per home. The homes were completed in 1968 and are located directly adjacent to an existing UDR community. The two communities will be managed together creating greater economies of scale. The homes will be completely renovated with new exterior siding, kitchens, baths, and more. The homes average 883 square feet and will generate an average gross income of approximately $1,800 per home after renovations.

Redevelopment activity is underway at six communities at a budgeted cost of $86.0 million. Annualized fourth quarter net operating income at these communities was $8.9 million. The Company believes post-renovated stabilized annual net operating income at these communities will increase by 91% to a total of $17.1 million.

Create Value with RE3

The Company's RE3 subsidiary focuses on development, land entitlement and short-term hold investments. Fourth quarter activity included:

    --  Acquisition of land in Dallas, Texas, for future development
        of 465 homes.

    --  Completion of a wholly owned, 202-home community in Plano,
        Texas, at a total cost of $18.2M or $90,000 per home. The
        Company has already executed 160 leases, producing rental
        revenue exceeding projections.

The Company did not complete any significant RE3 property sales during the quarter.

At December 31, 2007, the Company's total development pipeline totaled $2.6 billion. Approximately 15 percent of the pipeline is in lease-up, 26 percent is under construction and another 56 percent of the pipeline contains operating properties generating NOI. The Company has discretion to commence development or continue operating those properties depending on market conditions.

Innovate with Operations 2.0

The Company is committed to utilizing technology to increase efficiency, drive profitability and effectively serve customers. Implementation and customization of YieldStar revenue management software was completed during the quarter. Expected benefits include reduced concessions and more effective pricing to optimize revenue in changing market conditions.

In December, the Company's website ranked number one among its top 14 public and private competitors in an independent analysis of the web sites of the nation's 15 largest multi-family managers. The analysis was conducted by a well-known, worldwide internet research firm. During the fourth quarter, 50% of visitor traffic was initiated via the internet, up from 36% in the prior year. Utilizing technology in this method helped reduce same-community marketing costs by more than 16% year over year.

Source Low Cost Capital

As announced in November, the Company established a $650-million joint venture with a large domestic institutional partner. The venture will own a portfolio of 3,690 stabilized homes located in nine multi-family communities in Austin, Dallas and Houston, Texas and another 320 homes currently under development in Dallas. In addition to this $350-million initial pool of assets, the joint venture contains a $300-million expansion feature for future acquisitions. The Company realized proceeds of approximately $330 million for the properties and the Company retained a 20% interest in the venture. In addition to the upfront proceeds, the Company has the opportunity for future proceeds after certain IRR hurdles are achieved.

During the quarter, the Company repurchased approximately 1.1 million shares under its share-repurchase authorization at an average price of $21.35 per share. During the fourth quarter and subsequent to year end, the Company executed various swaps to fix LIBOR. Including its pro-rata share of joint venture swaps, the company executed a total of $225 million and fixed LIBOR at an average 2.84% for slightly over two years.

2008 Guidance

The Company believes that financial results for 2008 will be affected by international, national and regional economic trends and events, credit market volatility, the acquisition and/or disposition of apartment communities, portfolio repositioning, financing activities, and other factors. For full year 2008, the Company is estimating same-store revenue growth of 4.0% - 4.5%, expense growth of 3.0% - 3.5% and net operating income growth of 5.0% - 5.5%. The Company intends to provide guidance on expected funds from operations after closing the $1.7 billion portfolio sale which was announced today. The transaction is expected to close on or about March 3, 2008. All guidance is based on the current expectations and judgment of the Company's management team.

Supplemental Information

The Company offers Supplemental Information that provides details regarding the financial position and operating results of the Company. This Supplemental Information is available on the Company's website at:

http://www.udr.com/resources/files/Investor_Relations/4Q2007.pdf

Presentation slides containing details of the portfolio sale are available at the Company's website at www.udr.com.

    Conference Call Information

    Date: January 30, 2008

    Time: 11:00 a.m. Eastern Time

    To Participate in the Telephone Conference Call:

    Domestic: 800-218-0713

    International: 303-205-0066

    If you have any questions, please contact:

    Gloria Price: 720-283-6132

    E-mail: gprice@udr.com

    Conference Call Playback can be accessed through February 7, 2008:

    Domestic: 800-405-2236

    International: 303-590-3000

    Passcode: 11107765#

    Webcast and Podcast:

The conference call will also be available on UDR's website at www.udr.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay and downloadable podcast of the call will also be available for 90 days on UDR's website.

About UDR, Inc.

UDR, Inc. (NYSE: UDR) is a leading multi-family real estate investment trust (REIT) 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 December 31, 2007, UDR owned 65,867 apartment homes and had 6,386 homes under development and another 738 homes under contract for development in its pre-sale program. For over 30 years, UDR has delivered long-term value to shareholders, the best standard of service to residents, and the highest quality experience for associates. An S&P 400 company, UDR is the third largest apartment REIT in the nation. Additional information can be found on the Company's website at www.udr.com.

Statements contained in this press release, which are not historical facts, are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the Company's use of words such as, "expects," "plans," "estimates," "projects," "intends," "believes," and similar expressions that do not relate to historical matters. Such forward-looking statements are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated, due to a number of factors, which include, but are not limited to, unfavorable changes in the apartment market, changing economic conditions, the impact of competition and competitive pricing, acquisitions or new developments not achieving anticipated results, delays in completing developments and lease-ups on schedule, expectations on job growth, home affordability and demand/supply ratio for multi-family housing, expectations concerning redevelopment activities, expectations on occupancy levels, expectations concerning the Texas joint venture, expectations that automation will help grow net operating income, expectations on post-renovated stabilized annual operating income, exceptions on annualized net operating income, expectations concerning closing the $1.7 billion portfolio sale 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. All forward-looking statements in this press release are made as of today, based upon information known to management as of the date hereof. The Company assumes no obligation to update or revise any of its forward-looking statements even if experience or future changes show that indicated results or events will not be realized.


======================================================================
Attachment 1
------------------------------

                                 UDR
                Consolidated Statements of Operations
                             (Unaudited)

                               Three Months Ended  Twelve Months Ended
                                  December 31,        December 31,
                               ------------------- -------------------
In thousands, except per share
 amounts                         2007      2006      2007      2006
------------------------------ --------- --------- --------- ---------

Rental income                  $124,180  $120,447  $497,474  $463,719

Rental expenses:
  Real estate taxes and
   insurance                     13,010    13,769    57,875    55,152
  Personnel                      10,137    10,745    42,462    41,222
  Utilities                       6,248     6,256    25,765    24,556
  Repair and maintenance          6,654     6,668    27,041    25,852
  Administrative and marketing    3,214     3,367    12,894    12,979
  Property management             4,958     5,054    20,317    20,265
  Other operating expenses          496       331     1,442     1,238
                               --------- --------- --------- ---------
                                 44,717    46,190   187,796   181,264
Non-property income:
  Net gain on the sale of
   depreciable property to a
   joint venture                113,799         -   113,799         -
  Sale of technology
   investment                         -         -         -       796
  Other income                    1,844       437     2,720     2,789
                               --------- --------- --------- ---------
                                115,643       437   116,519     3,585
Other expenses:
  Real estate depreciation and
   amortization                  50,914    44,772   191,342   165,125
  Interest                       44,018    43,507   174,677   179,074
  General and administrative     11,914    10,216    39,566    31,198
  Severance costs and other
   restructuring charges          3,636         -     4,333         -
  Other depreciation and
   amortization                     841       627     3,076     2,513
                               --------- --------- --------- ---------
                                111,323    99,122   412,994   377,910

Income/(loss) before minority
 interests and discontinued
 operations                      83,783   (24,428)   13,203   (91,870)
Minority interests of outside
 partnerships                       (40)      (16)     (151)     (103)
Minority interests of
 unitholders in operating
 partnerships                    (4,367)    1,619       167     6,476
                               --------- --------- --------- ---------
Income/(loss) before
 discontinued operations, net
 of minority interests           79,376   (22,825)   13,219   (85,497)
Income from discontinued
 operations, net of minority
 interests (A)                   24,614    47,885   208,130   214,102
                               --------- --------- --------- ---------
Net income                      103,990    25,060   221,349   128,605
Distributions to preferred
 stockholders - Series B              -    (2,911)   (4,819)  (11,644)
Distributions to preferred
 stockholders - Series E
 (Convertible)                     (931)     (931)   (3,726)   (3,726)
Distributions to preferred
 stockholders - Series G         (2,253)        -    (5,366)        -
Premium on preferred stock
 repurchases                          -         -    (2,261)        -
                               --------- --------- --------- ---------
Net income available to common
 stockholders                  $100,806   $21,218  $205,177  $113,235
                               ========= ========= ========= =========

Earnings per weighted average
 common share - basic:
   Income/(loss) from
    continuing operations
    available to common
    stockholders, net of
    minority interests            $0.57    ($0.20)   ($0.02)   ($0.75)
   Income from discontinued
    operations, net of
    minority interests            $0.19     $0.36     $1.55     $1.60
   Net income available to
    common stockholders           $0.76     $0.16     $1.53     $0.85

Earnings per weighted average
 common share - diluted:
   Income/(loss) from
    continuing operations
    available to common
    stockholders, net of
    minority interests            $0.57    ($0.20)   ($0.02)   ($0.75)
   Income from discontinued
    operations, net of
    minority interests            $0.18     $0.36     $1.55     $1.60
   Net income available to
    common stockholders           $0.75     $0.16     $1.53     $0.85

Common distributions declared
 per share                      $0.3300   $0.3125   $1.3200   $1.2500

Weighted average number of
 common shares outstanding -
 basic                          132,990   133,931   134,016   133,732
Weighted average number of
 common shares outstanding -
 diluted                        133,618   133,931   134,016   133,732

(A) Discontinued operations represents all properties sold since
 January 1, 2005 and properties that are currently classified as held
 for disposition at December 31, 2007, except for nine operating
 properties sold to a joint venture in the fourth quarter of 2007 that
 have been included in continuing operations in accordance with the
 provisions of FAS 144 "Accounting for the Impairment or Disposal of
 Long-Lived Assets" and EITF No. 03-13.

======================================================================

======================================================================
Attachment 2
-------------------------------

                                 UDR
                        Funds From Operations
                             (Unaudited)

                                Three Months Ended Twelve Months Ended
                                   December 31,       December 31,
                                ------------------ -------------------
In thousands, except per share
 amounts                          2007      2006     2007      2006
------------------------------- --------- -------- --------- ---------

Net income                      $103,990  $25,060  $221,349  $128,605

Continuing Operations:
   Distributions to preferred
    stockholders                  (3,184)  (3,842)  (13,911)  (15,370)
   Real estate depreciation and
    amortization                  50,914   44,772   191,342   165,125
   Minority interests of
    unitholders in operating
    partnerships                   4,367   (1,619)     (167)   (6,476)
   Contribution of
    unconsolidated joint
    ventures                         808        -     1,784         -
   Net gains on the sale of
    depreciable property to a
    joint venture               (113,799)       -  (113,799)        -


Discontinued Operations:
   Real estate depreciation       13,269   19,556    66,108    78,764
   Minority interests              1,416    3,094    11,974    13,836
   Net gains on the sale of
    land and depreciable
    property                      (4,258) (34,117) (142,383) (148,614)
   RE3 tax benefits and gain on
    sales, net of taxes            3,875    9,493    24,913    28,601
                                --------- -------- --------- ---------
Funds from operations ("FFO") -
 basic                           $57,398  $62,397  $247,210  $244,471
                                ========= ======== ========= =========

   Distribution to preferred
    stockholders - Series E
    (Convertible)                    931      931     3,726     3,726

                                --------- -------- --------- ---------
Funds from operations - diluted  $58,329  $63,328  $250,936  $248,197
                                ========= ======== ========= =========

Weighted average number of
 common shares and OP Units
 outstanding - basic             140,624  142,489   141,778   142,426
Weighted average number of
 common shares, OP Units, and
 common stock equivalents
 outstanding - diluted           145,489  149,016   146,936   147,981

FFO per common share - basic       $0.41    $0.44     $1.74     $1.72
                                ========= ======== ========= =========
FFO per common share - diluted     $0.40    $0.42     $1.71     $1.68
                                ========= ======== ========= =========


FFO is defined as net income (computed in accordance with GAAP),
 excluding gains (or losses) from sales of depreciable property,
 premiums or original issuance costs associated with preferred stock
 redemptions, plus real estate depreciation and amortization, and
 after adjustments for unconsolidated partnerships and joint ventures.
 This definition conforms with the National Association of Real Estate
 Investment Trust's definition issued in April 2002. UDR considers FFO
 in evaluating property acquisitions and its operating performance and
 believes that FFO should be considered along with, but not as an
 alternative to, net income and cash flows as a measure of UDR's
 activities in accordance with generally accepted accounting
 principles and is not necessarily indicative of cash available to
 fund cash needs.

RE3 tax benefits and gain on sales, net of taxes, is defined as net
 sales proceeds less a tax provision and the gross investment basis of
 the asset before accumulated depreciation. We consider FFO with RE3
 gain on sales, net of taxes, to be a meaningful supplemental measure
 of performance because the short-term use of funds produce profits
 which differ from the traditional long-term investment in real estate
 for REITs.

======================================================================

======================================================================
Attachment 3
--------------------------------------------

                                 UDR
                     Consolidated Balance Sheets
                             (Unaudited)

                                             December 31, December 31,
In thousands, except share and per share
 amounts                                         2007         2006
----------------------------------------------------------------------

ASSETS

Real estate owned:
 Real estate held for investment              $4,131,881   $3,853,599
  Less: accumulated depreciation                (822,831)    (708,233)
                                             ------------ ------------
                                               3,309,050    3,145,366
 Real estate under development
  (net of accumulated depreciation of $963
   and $527)                                     345,037      203,786
 Real estate held for disposition
  (net of accumulated depreciation of
   $547,965 and $544,967)                        926,695    1,217,243
                                             ------------ ------------
 Total real estate owned, net of accumulated
  depreciation                                 4,580,782    4,566,395
Cash and cash equivalents                          3,219        2,143
Restricted cash                                    6,295        5,602
Deferred financing costs, net                     34,136       34,656
Notes receivable                                  12,655       10,500
Investment in unconsolidated joint ventures       48,264        5,850
Funds held in escrow from IRC Section 1031
 exchanges pending the acquisition of real
 estate                                           56,217            -
Other assets                                      45,428       33,060
Other assets - real estate held for
 disposition                                      14,125       17,669
                                             ------------ ------------
 Total assets                                 $4,801,121   $4,675,875
                                             ============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Secured debt                                    $955,770     $932,224
Secured debt - real estate held for
 disposition                                     182,166      250,695
Unsecured debt                                 2,364,740    2,155,866
Real estate taxes payable                          8,808       12,212
Accrued interest payable                          27,999       34,178
Security deposits and prepaid rent                21,897       16,849
Distributions payable                             49,152       46,936
Deferred gains on the sale of depreciable
 property                                         28,690            -
Accounts payable, accrued expenses, and
 other liabilities                                51,512       52,892
Other liabilities - real estate held for
 disposition                                      28,945       29,935
                                             ------------ ------------
 Total liabilities                             3,719,679    3,531,787

Minority interests                                62,049       88,833

Stockholders' equity
 Preferred stock, no par value; 50,000,000
  shares authorized 0 shares of 8.60% Series
  B Cumulative Redeemable issued and
  outstanding (5,416,009 shares at December
  31, 2006)                                            -      135,400
 2,803,812 shares of 8.00% Series E
  Cumulative Convertible issued and
  outstanding (2,803,812 shares at December
  31, 2006)                                       46,571       46,571
 5,400,000 shares of 6.75% Series G
  Cumulative Redeemable issued and
  outstanding (0 shares at December 31,
  2006)                                          135,000            -
 Common stock, $0.01 par value; 250,000,000
  shares authorized 133,317,706 shares
  issued and outstanding (135,029,126 shares
  at December 31, 2006)                            1,333        1,350
 Additional paid-in capital                    1,620,541    1,682,809
 Distributions in excess of net income          (783,238)    (810,875)
 Accumulated other comprehensive loss, net          (814)           -
                                             ------------ ------------
 Total stockholders' equity                    1,019,393    1,055,255
                                             ------------ ------------
 Total liabilities and stockholders' equity   $4,801,121   $4,675,875
                                             ============ ============

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Source: UDR, Inc.

Contact: UDR, Inc. Larry Thede, 720-283-2450 ir@udr.com www.udr.com