UDR, Inc. (UDR): Business Model Canvas [Dec-2025 Updated]

You're looking to truly understand how a major player like UDR, Inc. keeps the cash flowing predictably, right? After two decades analyzing real estate giants, I can tell you their model isn't just about owning apartments; it's a finely tuned machine. Think about it: they manage over 60,535 apartment homes, hitting a near-perfect 96.6% occupancy in Q3 2025, all while using an AI-powered CRM to boost 'other income' streams. We're diving deep into the nine building blocks that turn their high-quality Sunbelt portfolio into a projected $2.54 FFOA per share for 2025, so you can see exactly where the value is built and where the next opportunities lie below.

UDR, Inc. (UDR) - Canvas Business Model: Key Partnerships

You're looking at the external relationships UDR, Inc. relies on to execute its strategy, which is heavily focused on operational excellence and disciplined capital deployment across its portfolio of approximately 60,535 apartment homes as of June 30, 2025. These partnerships are critical for scaling technology, funding growth, and meeting investor demands for sustainability.

Funnel: AI-powered Multifamily CRM Provider

UDR, Inc. cemented a major operational partnership by selecting Funnel as its AI-infused Customer Relationship Management (CRM) provider. This move is central to UDR's long-standing vision for centralization, which it pioneered in the multifamily space.

• The rollout covers UDR's entire national portfolio, which is nearly 60,000 units.
• The partnership includes Funnel's full product suite: renter-centric® CRM, AI solution, fraud prevention, ResApp, and syndication.
• UDR, Inc. was recognized as NMHC's 14th-largest multifamily owner-operator in the United States when this partnership was announced in January 2025.

Institutional Capital Partners: Joint Ventures

Strategic partnerships are key to sourcing attractively priced capital and allowing UDR, Inc. to grow across different economic cycles. These joint ventures (JVs) and preferred equity investments help manage the balance sheet while deploying capital into assets.

Here's a look at recent capital deployment activity involving partners:

Partnership Activity Type	Specific Metric/Amount	Date/Period
Total Investment in Philadelphia JV Loan	$183.2 million	As of March 31, 2025
Total Preferred Equity Funded in Q3 2025	$59.6 million (across two communities)	Q3 2025
Contractual Return Rate on Orlando Preferred Equity	11.25 percent	Q3 2025 funding
Contractual Return Rate on Orange County Preferred Equity	10.0 percent	Q3 2025 funding

Technology Vendors: Software and Smart Living

Beyond the core CRM, UDR, Inc. partners with various vendors to enhance resident experience and drive operational efficiency, including smart home integration. This focus on digitalization is a core part of their platform strategy.

• Smart Home Packages, featuring smart locks and thermostats, are available in many apartment homes.
• Residents use the UDR Resident App for tasks like paying rent and submitting service requests.
• UDR, Inc. previously utilized Logical Buildings' SmartKit AI platform to manage energy and operations across its portfolio.
• The company generated 965,000 kWh of renewable energy through on-site solar in 2024.

Financial Institutions: Balance Sheet Flexibility

Access to credit facilities and debt markets is essential for maintaining liquidity and funding operations and acquisitions. UDR, Inc. manages a flexible balance sheet using a mix of debt and equity financing.

Key figures related to UDR, Inc.'s debt structure and liquidity as of mid-2025:

Financial Metric	Amount/Value	As of Date
Total Indebtedness	$5.8 billion	June 30, 2025
Liquidity (Cash + Undrawn Credit)	Approximately $1.1 billion	June 30, 2025
Maturity of Debt through 2026 (Excluding Credit Facility)	$531.8 million (or 9.6 percent of total consolidated debt)	June 30, 2025
Term Loan Maturity Extension	Extended to January 31, 2029 (from January 31, 2027) for a $350.0 million loan	Q3 2025

The extended term loan includes a swap agreement for $175.0 million at a fixed rate of 4.0 percent through October 1, 2027.

ESG/Climate Technology Funds

UDR, Inc. has made concrete financial commitments to strategic funds focused on climate and sustainability technology, aligning with its broader ESG goals.

The commitment level has increased over time:

• Total committed capital to ESG and Climate Technology Funds is $35 million.
• An additional $5 million commitment was made in early 2025, bringing the total to the current $35 million figure.
• The company's Scope 1 and 2 GHG emissions intensity was reduced by 22 percent since the 2020 baseline year.
• UDR procured 29 percent of its operationally controlled electricity through renewable energy sources in 2024.

Finance: draft 13-week cash view by Friday.

UDR, Inc. (UDR) - Canvas Business Model: Key Activities

You're looking at the core engine of UDR, Inc., the day-to-day actions that turn assets into cash flow and growth. These aren't just administrative tasks; they are where the real value is created or lost in a real estate investment trust like UDR, Inc. Here's the breakdown of what management is actively doing as of late 2025.

Centralized Property Management: Optimizing operations across nearly 60,000 units.

Running a portfolio this large requires tight control. You need consistent service delivery and cost management across every asset, whether it's in New York or Seattle. This centralization helps UDR, Inc. maintain operational consistency across its entire footprint.

Capital Allocation: Executing on $150-$350 million in acquisitions and $325-$625 million in dispositions for 2025.

This is the balancing act of portfolio optimization. UDR, Inc. is actively pruning the portfolio while reinvesting proceeds into higher-growth or more strategically located assets. For instance, subsequent to Q3 2025, the company entered an agreement to acquire a 406-home community in Metropolitan Washington, D.C., for approximately $147.0 million, intending to fund it with dispositions. Furthermore, the company repurchased approximately $35 million in common stock during Q3 2025, taking advantage of a buyback at a reported 20% discount to consensus Net Asset Value (NAV).

Here's a look at the targeted capital deployment for the full year 2025:

Activity	Full-Year 2025 Guidance Range
Acquisitions	$150-$350 million
Dispositions	$325-$625 million
Q3 2025 Share Repurchases	$35 million

Innovation Initiatives: Driving high-single-digit growth in other income through technology.

UDR, Inc. uses technology to generate revenue beyond base rent. These initiatives, covering things like Wi-Fi and value-add services, have consistently delivered high-single-digit y/y growth in other income. In the third quarter of 2025 specifically, other income growth was reported at 8.5%. This focus translates directly to the bottom line; since 2018, these initiatives have generated approximately $40 million of incremental run-rate Net Operating Income (NOI).

Leasing and Resident Retention: Maintaining high physical occupancy, averaging 96.6% in Q3 2025.

Keeping units filled at premium rates is non-negotiable. The weighted average physical occupancy for the third quarter ended September 30, 2025, was a strong 96.6%. This operational strength drove Same-Store Revenue growth of 2.6% year-over-year for Q3 2025, leading to Same-Store NOI growth of 2.3%. You can see the regional differences in this activity, though:

• East Coast weighted average occupancy: 96.7%.
• West Coast weighted average occupancy: 96.7%.
• Sunbelt markets weighted average occupancy: 96.5%.

Sustainable Operations: Reducing Scope 1 and 2 emissions intensity by 22% since 2020.

Managing environmental impact is a key activity tied to long-term asset value and operational efficiency. UDR, Inc. has lowered its Scope 1 and 2 emissions intensity by 22% since 2020, putting them more than halfway to their 40% reduction target set for 2035. To support this, the company procured 29% of its operationally controlled electricity through renewable energy sources in 2024. Furthermore, the count of sustainably certified apartment communities reached 38, representing over 20% of the total portfolio.

The sustainability progress looks like this:

• Scope 1 & 2 Emissions Intensity Reduction (since 2020): 22%.
• Target Reduction by 2035: 40%.
• Renewable Electricity Procurement (2024): 29%.
• Sustainably Certified Properties (Count): 38.

Finance: draft 13-week cash view by Friday.

UDR, Inc. (UDR) - Canvas Business Model: Key Resources

You're mapping out the core assets UDR, Inc. (UDR) relies on to execute its strategy. These are the foundational elements that make the business run, so let's look at the hard numbers supporting them as of late 2025.

The sheer scale of the physical assets is a primary resource. You can see the portfolio size holding steady through the middle of the year, which speaks to disciplined management and acquisition pacing.

Key Resource Metric	Value/Amount	As of Date/Period
Ownership Interest in Apartment Homes	60,535	June 30, 2025 and September 30, 2025
Apartment Homes Under Development	300	June 30, 2025 and September 30, 2025
Total Liquidity	Approximately $1.1 billion	June 30, 2025
Total Indebtedness	$5.8 billion	June 30, 2025
Debt to Enterprise Value	30%	September 30, 2025
Net Debt to EBITDA	5.5x	September 30, 2025
Total Employees	1,432	December 31, 2024

The technology platform is described as proprietary and integrated, using AI-infused systems for leasing and management. While I don't have a specific dollar amount spent on R&D for this, the operational results suggest it's a key differentiator.

Human capital metrics show a focus on retention, which is critical in property management. The required turnover figure is presented here, alongside the total headcount.

• Associate Turnover Rate: 20% in 2024.
• Total Employees: 1,432 as of December 31, 2024.

Brand equity is built on longevity and market standing. Being an S&P 500 company is a significant credential, backed by a long track record of shareholder returns.

• Index Inclusion: S&P 500 REIT.
• History of Delivering Returns: Over 50 years.

Finance: draft 13-week cash view by Friday.

UDR, Inc. (UDR) - Canvas Business Model: Value Propositions

You're looking at the core reasons why residents choose UDR, Inc. over the competition. It's about delivering a specific quality of home in the right places, making the math work for the renter, and using technology to make life smoother.

High-Quality Living: A- and B-Quality apartment homes in coastal and Sunbelt markets.

UDR, Inc. focuses its portfolio across specific geographic areas, balancing established coastal markets with high-growth Sunbelt locations. As of March 31, 2025, the portfolio's Net Operating Income (NOI) exposure was distributed as follows:

Market Segment	% of NOI (as of March 31, 2025)
Northeast/Mid-Atlantic	40%
West Coast	35%
Sunbelt	25%

The quality mix within these markets, based on average community rent relative to the market average rent as of March 31, 2025, shows a clear focus on the upper-middle tier:

Quality Tier	% of NOI (as of March 31, 2025)
A-Quality (Rent >120% of market average)	31%
B-Quality (Rent 80% to 120% of market average)	69%

Relative Affordability: Renting is nearly 60% less expensive than owning in UDR's markets.

The financial reality in UDR's operating areas strongly favors renting for many households. The comparison of monthly costs shows a significant gap:

• Renting is nearly 60% less expensive to rent than to own across UDR markets, based on data from 4Q 2023.
• This represents an approximately 25% improvement in relative affordability compared to pre-COVID levels (data as of 4Q 2023).

Enhanced Resident Experience: Customer Experience strategy leading to lower turnover.

UDR deploys a Customer Experience Project (CEP), calibrated using approximately 650 million historical resident-focused data points, to boost retention. The focus on experience translates into lower resident churn compared to industry norms.

• Annualized resident turnover was reported at 32% as of 1Q 2025, noted as the lowest in over a decade.
• Resident turnover decreased by nearly 500 basis points since 1Q 2023.
• UDR achieved an associate turnover rate of 20% in 2024, which is 14 percentage points lower than the industry standard of 34%.

Technology-Enabled Service: Seamless digital leasing and resident communication via AI-CRM.

Innovation initiatives are a direct driver of incremental revenue. The focus on digital service and value-add offerings shows up clearly in the financial results.

• UDR innovation initiatives have consistently driven high-single-digit year-over-year growth in other income, resulting in approximately $40 million of incremental run-rate NOI since 2018.
• Other income growth was 8.5% in the third quarter of 2025, driven by services like parking and Wi-Fi.
• UDR reaffirmed full-year 2025 guidance for same-store revenue growth in the range of 1.25% to 3.25%.

ESG Leadership: Commitment to sustainability, with 38 certified properties (over 20% of the portfolio).

UDR, Inc. has made concrete, measurable commitments to sustainability across its portfolio of 60,535 apartment homes as of June 30, 2025.

• The company completed Sustainability Certification for two additional properties, bringing the total to 38 certified properties, representing over 20% of the portfolio.
• Scope 1 and 2 emissions intensity has been reduced by 22% since 2020, which is more than halfway to the 40% reduction target set for 2035.
• In 2024, UDR procured 29% of operationally controlled electricity through renewable energy sources.
• The total commitment to strategic ESG and Climate Technology Funds stands at $35 million, following an additional $5 million commitment in early 2025.

Finance: review the Q4 2025 guidance impact on the 2026 same-store revenue forecast by Monday.

UDR, Inc. (UDR) - Canvas Business Model: Customer Relationships

UDR, Inc. employs a multi-faceted approach to managing customer relationships, blending advanced technology with dedicated on-site support across its portfolio of approximately 60,535 apartment homes as of June 30, 2025.

Automated/Digital: Self-service tools and AI-powered CRM for initial inquiries and leasing.

UDR, Inc. has moved toward a unified, omnichannel communication platform by rolling out Funnel's entire suite, including a renter-centric CRM and AI solutions, across its nearly 60,000-unit national portfolio. This technology is designed to simplify day-to-day operations by transparently routing communication and tasks to the correct specialized, centralized, or on-site team members. The AI component helps team members efficiently address frequently asked questions, schedule tours, and screen applications.

Dedicated On-site Teams: For maintenance, community engagement, and complex issue resolution.

The centralized technology strategy is built to support on-site personnel by ensuring tasks are routed correctly for resolution. UDR, Inc. is also focused on enhancing customer service by adding back positions where necessary to maintain high service levels. The company's focus on its associates is reflected in its 2024 associate turnover rate of 20%, which was fourteen percentage points lower than the industry standard of 34%.

Customer Experience Strategy: Proactive efforts to improve satisfaction and retention.

UDR, Inc. actively leverages insights from resident interactions to improve retention and drive cash flow, with innovation initiatives targeting high single-digit returns. This Customer Experience strategy is yielding measurable results in resident retention.

Metric	Value/Period	Data Point
Year-to-Date Annualized Resident Turnover Improvement (vs. prior year)	350 basis points better	As of Q2 2025
Annualized Resident Turnover Improvement (vs. prior year period)	300 basis points better	Early results as of May 2025
Same-Store Physical Occupancy	Averaged 96.6%	Q3 2025
Renewal Lease Rate Growth Expectation	Mid-4% range	For 2025
Portfolio Physical Occupancy	Near 97%	Q2 2025

Value-Add Services: Offering bundled services like Wi-Fi and parking for convenience.

Ancillary services are a key driver of revenue growth outside of core rent. Other income, which includes parking and Wi-Fi, grew by 8.5% in Q3 2025. In Q1 2024, this category represented approximately 10% of UDR's total revenue. The successful rollout of building-wide Wi-Fi contributed $1 million in additional income during Q1 2024, compared to just $100,000 in the same period the prior year. UDR's total revenue for the third quarter of 2025 was reported at $431.9 million.

• UDR's Q3 2025 total revenue increased by 2.8% year-over-year.
• UDR's annual revenue for the trailing twelve months ending September 30, 2025, was $1.70 billion.
• UDR's average household income is 2.5x higher than the median MSA income.

UDR, Inc. (UDR) - Canvas Business Model: Channels

You're looking at how UDR, Inc. gets its apartment homes in front of prospective residents and capital markets, so let's stick to the hard numbers from late 2025.

For Direct Digital Channels, which includes the main UDR website and resident services platforms, the effectiveness is reflected in the high occupancy figures. For the first quarter of 2025, Same-Store physical occupancy hit 97.2 percent. By the third quarter of 2025, occupancy was still strong, sitting in the mid-96% range. Resident retention, which is a key outcome of good resident services, showed a significant improvement, with annualized turnover dropping to 32 percent in Q1 2025, the lowest figure UDR reported in over a decade.

When it comes to Online Listing Syndication, UDR is pushing its inventory across third-party sites. While we don't have a direct percentage of leases sourced this way, the overall leasing momentum informs this channel's role. Management projected the full-year 2025 blended lease rate growth to land around 2.5 percent. This is a blend of new leases and renewals. Renewal lease rate growth, which often involves digital touchpoints for existing residents, was expected to stay in the mid-4% range throughout 2025.

The On-site Leasing Offices remain critical for that in-person connection. The success of the entire leasing effort, whether digital or physical, is evident in the revenue performance. For the third quarter of 2025, Same-Store revenue growth year-over-year was 2.6 percent. Also, other income, which often involves on-site service upselling, showed growth of 8.5 percent in Q3 2025.

For Investor Relations, UDR, Inc. actively engages capital markets through digital and in-person events. For instance, the executive team participated in the Bank of America Securities 2025 Global Real Estate Conference between September 9 and September 11, 2025. These events are broadcast via webcast on the Investor Relations section of the website, `ir.udr.com`. The company also released its third quarter 2025 financial results on October 29, 2025, followed by a public webcast on October 30, 2025, at 12:00 p.m. Eastern Time.

Here's a quick look at the key operational metrics that show how these channels are performing as of late 2025:

Metric	Period/Date	Value/Amount
Apartment Homes Owned/Positioned	As of June 30, 2025	60,535 units
Apartment Homes Under Development	As of June 30, 2025	300 units
Same-Store Physical Occupancy (YTD)	Q1 2025	97.2 percent
Same-Store Physical Occupancy	Q3 2025	Mid-96% range
Annualized Resident Turnover Rate	Q1 2025	32 percent
Projected Full-Year Blended Lease Rate Growth	2025 Guidance	2.5 percent
Same-Store Revenue Growth (YOY)	3Q 2025 vs 3Q 2024	2.6 percent
Other Income Growth (YOY)	3Q 2025	8.5 percent
FFOA per Diluted Share (Actual)	3Q 2025	$0.65

The company repurchased approximately 651 thousand shares of common stock for about $25.0 million during the three months ended September 30, 2025. Also, UDR extended the maturity date of its $350.0 million senior unsecured term loan to January 31, 2029.

UDR, Inc. (UDR) - Canvas Business Model: Customer Segments

You're looking at the core groups UDR, Inc. (UDR) focuses on serving and partnering with to generate returns. It's about who pays the rent and who funds the enterprise.

Affluent Renters

This segment is defined by high earning power, which provides a strong buffer against economic shifts. The properties are priced to attract those with significant disposable income.

• The average household income across UDR, Inc. (UDR) markets is reported as $167K.
• This average household income sits at 166% above the median income across metropolitan statistical areas (MSAs).
• The average UDR household income is 2.5x higher than the median MSA income.
• Resident Rent-to-Income (R/I) ratio is maintained in the low-20% range.

Urban and Suburban Professionals

UDR, Inc. (UDR) targets residents in specific geographic areas, balancing established coastal markets with high-growth Sunbelt locations. As of June 30, 2025, the portfolio size was substantial.

• As of June 30, 2025, UDR, Inc. (UDR) owned or had an ownership position in 60,535 apartment homes.
• This portfolio included 300 apartment homes under development as of September 30, 2025.
• The company is recognized as NMHC's 14th-largest multifamily owner-operator in the United States.

Institutional Investors

This group provides the vast majority of the capital base, seeking dependable, long-term returns characteristic of a large-cap S&P 500 REIT. Ownership concentration is high.

Here's the quick math on ownership structure as of late 2025:

Ownership Category	Percentage of Shares Outstanding (Late 2025)	Market Value (Approximate as of Sep 2025)
Institutional Shareholders	90.56% to 91.49%	$10.97B
Largest Institutional Shareholder (Vanguard Group Inc.)	15.22%	$1.83B
Insider Ownership	1.29%	N/A

Joint Venture Partners

UDR, Inc. (UDR) actively co-invests in development and stabilized assets, often through preferred equity or joint venture loan structures, which allows for capital deployment with defined return profiles. The activity in 2025 shows specific capital commitments.

• In Q1 2025, UDR, Inc. (UDR) increased its joint venture loan investment in the 478-home 1300 Fairmount community (Philadelphia, PA) by $114.6 million, for a total investment of $183.2 million.
• Subsequent to Q1 2025, a preferred equity investment of $13.0 million was fully funded in a stabilized San Francisco MSA community at a contractual return rate of 12.0 percent.
• In Q3 2025, UDR, Inc. (UDR) fully funded two preferred equity investments totaling $59.6 million in apartment communities in Orlando, FL, and Orange County, CA.
• One preferred equity investment in an Orange County, CA MSA community, fully funded in Q3 2025, was for $35.8 million at a contractual return rate of 10.0 percent.

UDR, Inc. (UDR) - Canvas Business Model: Cost Structure

You're looking at the cost side of UDR, Inc.'s business as of late 2025. For a real estate investment trust (REIT) like UDR, Inc., the cost structure is heavily weighted toward property-level expenses and the cost of capital. Honestly, managing these line items is what separates strong operators from the rest.

Property Operating Expenses

These are your day-to-day running costs for the apartment communities. UDR, Inc. groups real estate taxes, insurance, utilities, and maintenance under what they sometimes call Controllable Expenses. For the first quarter of 2025, Same-Store expense growth was reported at 2.3% year-over-year. By the second quarter of 2025, that growth moderated to 1.7% year-over-year. Looking ahead, the updated full-year 2025 guidance for Same-Store Expense Growth is set between 2.50% and 3.50%. That range shows you where management sees the pressure points for the rest of the year.

Here are the key components that make up those property-level costs:

• Property operating and maintenance expenses.
• Real estate taxes, insurance, utilities, and maintenance are included in rental expenses.
• Administrative and marketing costs are also part of direct property rental expenses.

Personnel Costs

Salaries and wages for your centralized corporate team and the on-site staff are a significant component. You'll see personnel costs rolled into the broader rental expenses calculation for Same-Store reporting. The good news for UDR, Inc. is that they emphasize low associate turnover, which helps keep recruiting and training costs down-a definite operational advantage. For instance, in Q1 2025, operational enhancements drove a 300 basis point improvement in annualized turnover compared to the prior year period.

Property Management Expense

This is a straightforward, formulaic cost that covers corporate management, regional supervision, and accounting functions directly related to consolidated property operations. UDR, Inc. calculates this expense consistently as 3.25% of property revenue. If you look at their Q3 2025 total revenue of $431.9 million, you can quickly estimate the magnitude of this specific cost component for that period.

Capital Expenditures

This bucket covers investments to keep the properties competitive and enhance Net Operating Income (NOI). While the search results don't give a single, consolidated CapEx number for 2025, they detail significant capital deployment through preferred equity investments, which is a form of investment CapEx. For example, UDR, Inc. fully funded a $23.8 million preferred equity investment in Q1/Q2 and another for $35.8 million in Q3. Also, they repurchased stock, spending approximately $25.0 million in Q3 2025 alone.

Here's a quick look at some of the capital deployment activities mentioned around the 2025 reporting periods:

Capital Activity Type	Amount (Millions USD)	Context/Rate
Preferred Equity Investment (Orlando)	$23.8	Contractual return rate of 11.25 percent
Preferred Equity Investment (Orange County)	$35.8	Contractual return rate of 10.0 percent
Common Stock Repurchase (Q3 2025)	$25.0	Weighted average share price of $38.37

You can see they are actively deploying capital into both external investments and returning value to shareholders.

Interest Expense

This is the cost of financing the balance sheet. As of March 31, 2025, UDR, Inc.'s total indebtedness stood at $5.8 billion. The weighted average interest rate on that debt was relatively low at 3.4% as of Q1 2025. However, you have to watch for specific impacts, like the expected negative $0.01 per diluted share impact from an interest rate swap expiring mid-year 2025. Still, management noted that this was expected to be more than offset by an assumed lower average debt balance for FY 2025 compared to FY 2024.

The key cost drivers for UDR, Inc. boil down to property-level operations and debt servicing.

Finance: draft 13-week cash view by Friday.

UDR, Inc. (UDR) - Canvas Business Model: Revenue Streams

You're looking at the core ways UDR, Inc. brings in cash, which is essential for valuing any REIT. Honestly, it all boils down to rent, but the other bits add up, too.

Rental Income is the bedrock here. For the third quarter of 2025, the total revenue figure UDR reported was $431.9 million. To be more specific, the quarterly revenues from the rental income component itself were $429.3 million for that same period. This is the primary engine for UDR, Inc.

The outlook for growth from existing properties is managed carefully. For the full year 2025, UDR, Inc. adjusted its guidance midpoint for Same-Store Revenue Growth to 2.4%. This number reflects how much revenue is growing from properties UDR has owned for the full comparison periods, stripping out the noise from buying or selling assets.

Also important is the growth from ancillary services. Other Income, which comes from value-add services like parking and Wi-Fi access, showed strong momentum, growing by 8.5% in the third quarter of 2025. This shows successful execution on their innovation initiatives.

When you look at the bottom line for shareholders, FFOA per Share (Funds From Operations as Adjusted per Share) is the key metric. The updated full-year 2025 guidance midpoint for FFOA per Share sits at $2.54, with the range set between $2.53 and $2.55. For context, the actual FFOA per share in Q3 2025 was $0.65.

UDR, Inc. also generates income through its Preferred Equity Returns program, which acts as a debt-like investment stream. Here's a snapshot of recent activity in that area:

Investment Detail	Amount	Contractual Return Rate	Location Example
New Preferred Equity Investment Funded (Q3 2025)	$23.8 million	11.25%	Orlando, FL
New Preferred Equity Investment Funded (Q3 2025)	$35.8 million	10.0%	Orange County, CA
Total Preferred Equity Funded (Q3 2025)	Approximately $60 million	Weighted Average of 10.5%	Orlando, FL and Orange County, CA
Preferred Equity Investment Repayment Received (Q3 2025)	Approximately $32.2 million	N/A (Repayment)	Los Angeles, CA

These preferred equity deals are strategic, aiming for high current pay. You can see the specific contractual return mentioned in your outline:

• Income from preferred equity investments includes a specific deal with a contractual return of 11.25% on a $23.8 million investment.
• Another recent funding was for $35.8 million at a 10.0% contractual return.
• The company also received a full repayment of a $32.2 million preferred equity investment during the quarter.

Finance: draft 13-week cash view by Friday.