UDR Reports Tax Treatment of 2025 Distributions

Key Terms

form 1099-div regulatory

Form 1099-DIV is a U.S. tax document brokers, mutual funds and other financial institutions send to investors showing dividends and other distributions paid during the year. Investors use it like an annual receipt to report taxable income — including regular dividends, dividends that may qualify for lower tax rates, and capital gains distributions — so it directly affects tax liability and helps reconcile brokerage records with a tax return.

unrecaptured section 1250 gain regulatory

A portion of the taxable profit realized when selling depreciable real estate that represents previously claimed depreciation deductions and is taxed at a special, generally higher capital-gains-related rate (capped at 25% under U.S. tax rules). Think of it as paying back part of the tax benefit you took earlier; it matters to investors because it reduces the after-tax proceeds from a sale and can change the economics and timing of selling property or property-related investments.

section 897 regulatory

Section 897 is a U.S. tax rule that treats the sale or transfer of U.S. real estate interests by non-U.S. persons as taxable in the United States, so a foreign owner can’t avoid U.S. tax simply by being based abroad. For investors, it matters because it can create a tax bill or withholding requirement when foreign parties buy, sell, or receive certain interests in U.S. property, which can change transaction proceeds and deal structure much like a built-in closing cost.

section 199a dividends regulatory

Section 199A dividends are certain dividend payments from real estate investment trusts (REITs) and publicly traded partnerships that qualify for a special U.S. tax deduction allowing up to a 20% reduction of the income they create. For investors, that means these payouts are taxed differently than regular dividend income—they don’t get the lower capital gains rate but can lower taxable income through the deduction, similar to getting a partial tax rebate on that income.

section 1061 regulatory

Section 1061 is a U.S. tax rule that changes how certain profit shares earned by investment managers—commonly called carried interest—are taxed: if the partnership interest is held less than three years, gains from that interest are treated like ordinary income rather than lower-taxed long-term capital gains. For investors this matters because it can reduce the after-tax returns of funds and influence manager behavior—think of it like a minimum holding period you must meet to qualify for a better tax rate.

applicable partnership interests financial

Applicable partnership interests are the specific ownership stakes in a partnership that are subject to a particular contract, transaction or regulatory rule; they represent the portions of profit, loss, cash flow and decision rights tied to those shares. Investors care because which interests are labeled “applicable” determines who receives distributions, bears liabilities and votes on key matters—like which slices of a pie are being sold or re‑allocated—so it directly affects value, control and expected returns.

real estate investment trust financial

A real estate investment trust (REIT) is a company that owns and manages income-producing properties—like apartment buildings, shopping centers, offices, or warehouses—and is required to pass most of its rental income to shareholders as dividends. Think of it as a shared property owner: instead of buying a whole building, investors buy a slice of a portfolio that pays regular income and can offer exposure to property values and rental markets without direct management. REITs matter to investors for predictable income, diversification, and liquidity compared with owning physical real estate.

DENVER--(BUSINESS WIRE)-- UDR, Inc. (the “Company”) (NYSE: UDR), a leading multifamily real estate investment trust, reported today the tax status of its 2025 distributions paid to shareholders. The following table summarizes the nature of these cash distributions per share and provides the appropriate Form 1099-DIV box number:

Record Date	Payment Date	Distribution Per Share	Box 1a Total Ordinary Dividends	Box 1b Qualified Dividends1	Box 2a Total Capital Gain Distr.	Box 2b Unrecaptured Sec. 1250 Gain2	Box 2e Sec. 897 Ordinary Dividends1	Box 2f Sec. 897 Capital Gain2	Box 3 Nondividend Distributions	Box 5 Sec. 199A Dividends1
Common Shares:
1/10/2025	1/31/2025	$0.425000	$0.352993	$0.000015	$0.072007	$0.028103	$0.071105	$0.058234	$0.000000	$0.352978
4/10/2025	4/30/2025	$0.430000	$0.357146	$0.000016	$0.072854	$0.028433	$0.071941	$0.058919	$0.000000	$0.357130
7/10/2025	7/31/2025	$0.430000	$0.357146	$0.000016	$0.072854	$0.028433	$0.071941	$0.058919	$0.000000	$0.357130
10/9/2025	10/31/2025	$0.430000	$0.357146	$0.000016	$0.072854	$0.028433	$0.071941	$0.058919	$0.000000	$0.357130
	Total	$1.715000	$1.424431	$0.000063	$0.290569	$0.113402	$0.286928	$0.234991	$0.000000	$1.424368
Preferred Shares Series E:
1/10/2025	1/31/2025	$0.460200	$0.382229	$0.000017	$0.077971	$0.030430	$0.076994	$0.063057	$0.000000	$0.382212
4/10/2025	4/30/2025	$0.465600	$0.386714	$0.000017	$0.078886	$0.030787	$0.077897	$0.063797	$0.000000	$0.386697
7/10/2025	7/31/2025	$0.465600	$0.386714	$0.000017	$0.078886	$0.030787	$0.077897	$0.063797	$0.000000	$0.386697
10/9/2025	10/31/2025	$0.465600	$0.386714	$0.000017	$0.078886	$0.030787	$0.077897	$0.063797	$0.000000	$0.386697
	Total	$1.857000	$1.542371	$0.000068	$0.314629	$0.122791	$0.310685	$0.254448	$0.000000	$1.542303

(1) - These amounts are a subset of, and included in, the amounts in Box 1a.

(2) - These amounts are a subset of, and included in, the amounts in Box 2a.

Pursuant to Treas. Reg. § 1.1061-6(c), UDR, Inc. is disclosing below two additional amounts for purposes of Section 1061 of the Internal Revenue Code. Section 1061 is generally applicable to direct and indirect holders of “applicable partnership interests.”

Record Date	Payment Date	Form 1099-DIV Box 2a, Total Capital Gain Distr. Per Share	One Year Amounts Disclosure Per Share	Three Year Amounts Disclosure Per Share
Common Shares:
1/10/2025	1/31/2025	$0.072007	$0.042596	$0.028899
4/10/2025	4/30/2025	$0.072854	$0.043097	$0.029239
7/10/2025	7/31/2025	$0.072854	$0.043097	$0.029239
10/9/2025	10/31/2025	$0.072854	$0.043097	$0.029239
	Total	$0.290569	$0.171887	$0.116616
Preferred Shares Series E:
1/10/2025	1/31/2025	$0.077971	$0.046124	$0.031292
4/10/2025	4/30/2025	$0.078886	$0.046666	$0.031660
7/10/2025	7/31/2025	$0.078886	$0.046666	$0.031660
10/9/2025	10/31/2025	$0.078886	$0.046666	$0.031660
	Total	$0.314629	$0.186122	$0.126272

Shareholders of record of the Company's common and preferred stock will receive an Internal Revenue Service Form 1099-DIV from EQ Shareowner Services, the Company's 2025 distribution paying agent. The form will report the distributions paid and the amounts designated as total ordinary dividends, qualified dividends, total capital gains, unrecaptured section 1250 gains, section 897 ordinary dividends, section 897 capital gain, nondividend distributions, and section 199A dividends. If shares were held in "street name" during 2025, 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, 2025, the distribution allocations presented herein have been calculated using the best available information to date.

The tax treatment of these distributions 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 distributions 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 distributions.

About UDR, Inc.

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust 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 September 30, 2025, UDR owned or had an ownership position in 60,535 apartment homes, including 300 apartment homes under development. For over 53 years, UDR has delivered long-term value to shareholders, the best standard of service to residents and the highest quality experience for associates.

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UDR, Inc.

Trent Trujillo

ttrujillo@udr.com

720-283-6135

Source: UDR, Inc.