| Schedule of unconsolidated joint ventures and partnerships |
The following table summarizes the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net, which are accounted for under the equity method of accounting as of June 30, 2024 and December 31, 2023 (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Number of | | Number of | | | | | | | | | | | | | | | | | | | | | | | Operating | | Apartment | | UDR's Weighted Average | | | | | | | | | Income/(loss) from investments | | Income/(loss) from investments | | | Communities | | Homes | | Ownership Interest | | | Investment at | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | June 30, | | | December 31, | | | June 30, | | December 31, | | June 30, | | June 30, | Joint Ventures | | 2024 | | 2024 | | 2024 | | 2023 | | | 2024 | | 2023 | | 2024 | | 2023 | | 2024 | | 2023 | Operating: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | UDR/MetLife (a) | | 13 | | 2,837 | | 50.2 | % | | 50.2 | % | | $ | 215,286 | | $ | 225,195 | | $ | (1,408) | | $ | (1,125) | | $ | (3,254) | | $ | (2,475) | UDR/LaSalle | | 5 | | 1,590 | | 51.0 | % | | 51.0 | % | | | 275,885 | | | 286,723 | | | (2,793) | | | (42) | | | (5,671) | | | (42) | Total Joint Ventures | | 18 | | 4,427 | | | | | | | | $ | 491,171 | | $ | 511,918 | | $ | (4,201) | | $ | (1,167) | | $ | (8,925) | | $ | (2,517) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Number of | | Apartment | | | | | | | | | | | | | | | | Income/(loss) from investments | | Income/(loss) from investments | | | Communities | | Homes | | Weighted | | | | | | | | Investment at | | Three Months Ended | | Six Months Ended | Developer Capital Program | | June 30, | | June 30, | | Average | | | Years To | | UDR | | June 30, | | December 31, | | June 30, | | June 30, | and Real Estate Technology Investments (b) | | 2024 | | 2024 | | Rate | | | Maturity | | Commitment (c) | | 2024 | | 2023 | | 2024 | | 2023 | | 2024 | | 2023 | Preferred equity investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Operating | | 22 | | 5,234 | | 9.5 | % | | 2.9 | | $ | 313,165 | | $ | 385,968 | | $ | 367,295 | | $ | 7,690 | | $ | 7,147 | | $ | 15,132 | | $ | 15,160 | Development | | 1 | | 384 | | 14.0 | % | | 2.0 | | | 16,044 | | | 21,943 | | | 20,476 | | | 746 | | | 651 | | | 1,467 | | | 1,273 | Total Preferred Equity Investments | | 23 | | 5,618 | | 9.7 | % | | 2.9 | | $ | 329,209 | | | 407,911 | | | 387,771 | | | 8,436 | | | 7,798 | | | 16,599 | | | 16,433 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real estate technology and sustainability investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real estate technology and sustainability investments | | N/A | | N/A | | N/A | | | N/A | | $ | 86,000 | | | 50,980 | | | 44,382 | | | (189) | | | (816) | | | 5,457 | | | 119 | Total Preferred Equity Investments and Real Estate Technology and Sustainability Investments | | | | | | | | | | | | | | | 458,891 | | | 432,153 | | | 8,247 | | | 6,982 | | | 22,056 | | | 16,552 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Sold joint ventures and other investments | | | | | | | | | | | | | | | — | | | — | | | — | | | 3,882 | | | — | | | 5,369 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total investment in and advances to unconsolidated joint ventures, net (a) | | | | | $ | 950,062 | | $ | 944,071 | | $ | 4,046 | | $ | 9,697 | | $ | 13,131 | | $ | 19,404 |
| (a) | As of June 30, 2024 and December 31, 2023, the Company’s negative investment in one UDR/MetLife community of $8.9 million and $8.9 million, respectively, is recorded in Accounts payable, accrued expenses, and other liabilities on the Consolidated Balance Sheets. |
| (b) | The Developer Capital Program is the program through which the Company makes investments, including preferred equity investments, mezzanine loans or other structured investments that may receive a fixed yield on the investment and may include provisions pursuant to which the Company participates in the increase in value of the property upon monetization of the applicable property. At June 30, 2024, our preferred equity investment portfolio consisted of 23 communities located in various markets, consisting of 5,234 operating apartment homes and 384 apartment homes under development. In addition, the Company’s preferred equity investments include four investments that receive a variable percentage of the value created from the project upon a capital or liquidating event. During the six months ended June 30, 2024, the Company did not enter into or fund any new preferred equity investments and no preferred equity investments were redeemed. |
In July 2024, the Company received a $17.2 million partial paydown on one of its operating preferred equity investments. In conjunction with the paydown, the Company’s remaining $50.0 million preferred equity investment will earn a preferred return of 11.0% per annum. In July 2024, the Company entered into three joint venture agreements and was under contract to enter into a fourth joint venture agreement with an unaffiliated joint venture partner to operate four operating communities with a total of 818 apartment homes located in Portland, Oregon. The Company’s combined preferred equity investment of $35.0 million earns, or with respect to the fourth joint venture will earn if funded, a preferred return of 10.75% per annum. The unaffiliated joint venture partner is or will be the managing member of the joint ventures. The Company has concluded that it does not control the joint ventures and will account for its investments under the equity method of accounting. | (c) | Represents UDR’s maximum funding commitment only and therefore excludes other activity such as income from investments. |
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| Combined summary of balance sheets relating to unconsolidated joint ventures and partnerships |
Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of June 30, 2024 and December 31, 2023 (dollars in thousands): | | | | | | | | | June 30, | | December 31, | | | 2024 | | 2023 | Total real estate, net | | $ | 3,158,681 | | $ | 3,158,057 | Investments, at fair value | | | 305,418 | | | 257,832 | Cash and cash equivalents | | | 69,423 | | | 61,670 | Other assets | | | 134,973 | | | 146,976 | Total assets | | $ | 3,668,495 | | $ | 3,624,535 | | | | | | | | Third party debt, net | | $ | 2,033,372 | | $ | 2,012,816 | Accounts payable and accrued liabilities | | | 169,254 | | | 171,502 | Total liabilities | | | 2,202,626 | | | 2,184,318 | Total equity | | $ | 1,465,869 | | $ | 1,440,217 |
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| Schedule of combined financial information relating to unconsolidated joint ventures and partnerships operations (not just proportionate share) |
Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three and six months ended June 30, 2024 and 2023 (dollars in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2024 | | 2023 | | 2024 | | 2023 | Total revenues | | $ | 78,013 | | $ | 63,702 | | $ | 154,269 | | $ | 124,377 | Property operating expenses | | | 35,793 | | | 26,478 | | | 70,728 | | | 54,511 | Real estate depreciation and amortization | | | 38,091 | | | 25,605 | | | 75,053 | | | 50,033 | Operating income/(loss) | | | 4,129 | | | 11,619 | | | 8,488 | | | 19,833 | Interest expense | | | (25,571) | | | (23,113) | | | (50,108) | | | (47,064) | Net unrealized/realized gain/(loss) on held investments | | | 5,349 | | | (6,263) | | | 32,749 | | | 3,526 | Other income/(loss) | | | (1,520) | | | (1,324) | | | (3,348) | | | 998 | Net income/(loss) | | $ | (17,613) | | $ | (19,081) | | $ | (12,219) | | $ | (22,707) |
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