x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland (UDR, Inc.) | 54-0857512 | |
Delaware (United Dominion Realty, L.P.) | 54-1776887 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation of organization) | Identification No.) |
UDR, Inc. | Yes x No o | |
United Dominion Realty, L.P. | Yes x No o |
UDR, Inc. | Yes x No o | |
United Dominion Realty, L.P. | Yes x No o |
UDR, Inc.: | ||||||
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) | Emerging growth company o |
United Dominion Realty, L.P.: | ||||||
Large accelerated filer o | Accelerated filer o | Non-accelerated filer x | Smaller reporting company o | |||
(Do not check if a smaller reporting company) | Emerging growth company o |
UDR, Inc. | o | |
United Dominion Realty, L.P. | o |
UDR, Inc. | Yes o No x | |
United Dominion Realty, L.P. | Yes o No x |
INDEX | |
PAGE | |
Item 4. Mine Safety Disclosures | |
Exhibit 4.1 | |
Exhibit 12.1 | |
Exhibit 12.2 | |
Exhibit 31.1 | |
Exhibit 31.2 | |
Exhibit 31.3 | |
Exhibit 31.4 | |
Exhibit 32.1 | |
Exhibit 32.2 | |
Exhibit 32.3 | |
Exhibit 32.4 |
March 31, 2017 | December 31, 2016 | ||||||
(unaudited) | (audited) | ||||||
ASSETS | |||||||
Real estate owned: | |||||||
Real estate held for investment | $ | 9,393,732 | $ | 9,271,847 | |||
Less: accumulated depreciation | (3,026,660 | ) | (2,923,072 | ) | |||
Real estate held for investment, net | 6,367,072 | 6,348,775 | |||||
Real estate under development (net of accumulated depreciation of $0 and $0, respectively) | 393,837 | 342,282 | |||||
Real estate held for disposition (net of accumulated depreciation of $0 and $553, respectively) | — | 1,071 | |||||
Total real estate owned, net of accumulated depreciation | 6,760,909 | 6,692,128 | |||||
Cash and cash equivalents | 2,460 | 2,112 | |||||
Restricted cash | 19,757 | 19,994 | |||||
Notes receivable, net | 19,790 | 19,790 | |||||
Investment in and advances to unconsolidated joint ventures, net | 818,990 | 827,025 | |||||
Other assets | 114,005 | 118,535 | |||||
Total assets | $ | 7,735,911 | $ | 7,679,584 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Secured debt, net | $ | 1,031,507 | $ | 1,130,858 | |||
Unsecured debt, net | 2,505,785 | 2,270,620 | |||||
Real estate taxes payable | 23,105 | 17,388 | |||||
Accrued interest payable | 27,887 | 29,257 | |||||
Security deposits and prepaid rent | 36,894 | 34,238 | |||||
Distributions payable | 91,436 | 86,936 | |||||
Accounts payable, accrued expenses, and other liabilities | 74,608 | 103,835 | |||||
Total liabilities | 3,791,222 | 3,673,132 | |||||
Commitments and contingencies (Note 12) | |||||||
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | 904,778 | 909,482 | |||||
Equity: | |||||||
Preferred stock, no par value; 50,000,000 shares authorized: | |||||||
8.00% Series E Cumulative Convertible; 2,796,903 shares issued and outstanding at March 31, 2017 and December 31, 2016 | 46,457 | 46,457 | |||||
Series F; 16,155,807 and 16,196,889 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 1 | 1 | |||||
Common stock, $0.01 par value; 350,000,000 shares authorized: | |||||||
267,398,819 and 267,259,469 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 2,674 | 2,673 | |||||
Additional paid-in capital | 4,635,942 | 4,635,413 | |||||
Distributions in excess of net income | (1,644,621 | ) | (1,585,825 | ) | |||
Accumulated other comprehensive income/(loss), net | (4,288 | ) | (5,609 | ) | |||
Total stockholders’ equity | 3,036,165 | 3,093,110 | |||||
Noncontrolling interests | 3,746 | 3,860 | |||||
Total equity | 3,039,911 | 3,096,970 | |||||
Total liabilities and equity | $ | 7,735,911 | $ | 7,679,584 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
REVENUES: | |||||||
Rental income | $ | 241,271 | $ | 231,957 | |||
Joint venture management and other fees | 2,570 | 2,858 | |||||
Total revenues | 243,841 | 234,815 | |||||
OPERATING EXPENSES: | |||||||
Property operating and maintenance | 39,600 | 39,446 | |||||
Real estate taxes and insurance | 30,188 | 28,377 | |||||
Property management | 6,635 | 6,379 | |||||
Other operating expenses | 1,691 | 1,752 | |||||
Real estate depreciation and amortization | 105,032 | 105,339 | |||||
General and administrative | 13,075 | 13,844 | |||||
Casualty-related (recoveries)/charges, net | 502 | — | |||||
Other depreciation and amortization | 1,608 | 1,553 | |||||
Total operating expenses | 198,331 | 196,690 | |||||
Operating income | 45,510 | 38,125 | |||||
Income/(loss) from unconsolidated entities | 11,198 | 679 | |||||
Interest expense | (30,539 | ) | (31,104 | ) | |||
Interest income and other income/(expense), net | 427 | 431 | |||||
Income/(loss) before income taxes and gain/(loss) on sale of real estate owned | 26,596 | 8,131 | |||||
Tax (provision)/benefit, net | (332 | ) | 403 | ||||
Income/(loss) from continuing operations | 26,264 | 8,534 | |||||
Gain/(loss) on sale of real estate owned, net of tax | 2,132 | 3,070 | |||||
Net income/(loss) | 28,396 | 11,604 | |||||
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | (2,338 | ) | (905 | ) | |||
Net (income)/loss attributable to noncontrolling interests | (91 | ) | (306 | ) | |||
Net income/(loss) attributable to UDR, Inc. | 25,967 | 10,393 | |||||
Distributions to preferred stockholders — Series E (Convertible) | (929 | ) | (929 | ) | |||
Net income/(loss) attributable to common stockholders | $ | 25,038 | $ | 9,464 | |||
Common distributions declared per share | $ | 0.310 | $ | 0.295 | |||
Income/(loss) per weighted average common share: | |||||||
Basic | $ | 0.09 | $ | 0.04 | |||
Diluted | $ | 0.09 | $ | 0.04 | |||
Weighted average number of common shares outstanding: | |||||||
Basic | 266,790 | 262,456 | |||||
Diluted | 268,688 | 264,285 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Net income/(loss) | $ | 28,396 | $ | 11,604 | |||
Other comprehensive income/(loss), including portion attributable to noncontrolling interests: | |||||||
Other comprehensive income/(loss) - derivative instruments: | |||||||
Unrealized holding gain/(loss) | 632 | (811 | ) | ||||
(Gain)/loss reclassified into earnings from other comprehensive income/(loss) | 818 | 935 | |||||
Other comprehensive income/(loss), including portion attributable to noncontrolling interests | 1,450 | 124 | |||||
Comprehensive income/(loss) | 29,846 | 11,728 | |||||
Comprehensive (income)/loss attributable to noncontrolling interests | (2,558 | ) | (692 | ) | |||
Comprehensive income/(loss) attributable to UDR, Inc. | $ | 27,288 | $ | 11,036 |
Preferred Stock | Common Stock | Paid-in Capital | Distributions in Excess of Net Income | Accumulated Other Comprehensive Income/(Loss), net | Noncontrolling Interests | Total | |||||||||||||||||||||
Balance at December 31, 2016 | $ | 46,458 | $ | 2,673 | $ | 4,635,413 | $ | (1,585,825 | ) | $ | (5,609 | ) | $ | 3,860 | $ | 3,096,970 | |||||||||||
Net income/(loss) attributable to UDR, Inc. | — | — | — | 25,967 | — | — | 25,967 | ||||||||||||||||||||
Net income/(loss) attributable to noncontrolling interests | — | — | — | — | — | 101 | 101 | ||||||||||||||||||||
Contribution of noncontrolling interests in consolidated real estate | — | — | — | — | — | 125 | 125 | ||||||||||||||||||||
Long-Term Incentive Plan Unit grants/(vestings), net | — | — | — | — | — | (340 | ) | (340 | ) | ||||||||||||||||||
Other comprehensive income/(loss) | — | — | — | — | 1,321 | — | 1,321 | ||||||||||||||||||||
Issuance/(forfeiture) of common and restricted shares, net | — | 1 | (1,879 | ) | — | — | — | (1,878 | ) | ||||||||||||||||||
Cumulative effect upon adoption of ASU 2016-09 | — | — | 558 | (558 | ) | — | — | — | |||||||||||||||||||
Adjustment for conversion of noncontrolling interest of unitholders in the Operating Partnership and DownREIT Partnership | — | — | 1,850 | — | — | — | 1,850 | ||||||||||||||||||||
Common stock distributions declared ($0.310 per share) | — | — | — | (82,995 | ) | — | — | (82,995 | ) | ||||||||||||||||||
Preferred stock distributions declared-Series E ($0.3322 per share) | — | — | — | (929 | ) | — | — | (929 | ) | ||||||||||||||||||
Adjustment to reflect redemption value of redeemable noncontrolling interests | — | — | — | (281 | ) | — | — | (281 | ) | ||||||||||||||||||
Balance at March 31, 2017 | $ | 46,458 | $ | 2,674 | $ | 4,635,942 | $ | (1,644,621 | ) | $ | (4,288 | ) | $ | 3,746 | $ | 3,039,911 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Operating Activities | |||||||
Net income/(loss) | $ | 28,396 | $ | 11,604 | |||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||
Depreciation and amortization | 106,640 | 106,892 | |||||
(Gain)/loss on sale of real estate owned, net of tax | (2,132 | ) | (3,070 | ) | |||
Tax provision/(benefit), net | 332 | (403 | ) | ||||
(Income)/loss from unconsolidated entities | (11,198 | ) | (679 | ) | |||
Return on investment in unconsolidated joint ventures | 1,455 | 272 | |||||
Amortization of share-based compensation | 3,379 | 3,879 | |||||
Other | 4,264 | 2,497 | |||||
Changes in operating assets and liabilities: | |||||||
(Increase)/decrease in operating assets | 3,856 | (1,853 | ) | ||||
Increase/(decrease) in operating liabilities | (14,528 | ) | (6,378 | ) | |||
Net cash provided by/(used in) operating activities | 120,464 | 112,761 | |||||
Investing Activities | |||||||
Acquisition of real estate assets | (65,381 | ) | — | ||||
Proceeds from sales of real estate investments, net | 3,250 | 21,951 | |||||
Development of real estate assets | (63,022 | ) | (36,045 | ) | |||
Capital expenditures and other major improvements — real estate assets, net of escrow reimbursement | (21,921 | ) | (24,917 | ) | |||
Capital expenditures — non-real estate assets | (1,233 | ) | (664 | ) | |||
Investment in unconsolidated joint ventures | (24,193 | ) | (13,262 | ) | |||
Distributions received from unconsolidated joint ventures | 9,711 | 7,711 | |||||
Net cash provided by/(used in) investing activities | (162,789 | ) | (45,226 | ) | |||
Financing Activities | |||||||
Payments on secured debt | (99,463 | ) | (2,205 | ) | |||
Payments on unsecured debt | — | (83,373 | ) | ||||
Proceeds from the issuance of unsecured debt | 220,000 | — | |||||
Net proceeds/(repayment) of revolving bank debt | 14,790 | (73,652 | ) | ||||
Proceeds from the issuance of common shares through public offering, net | — | 173,300 | |||||
Distributions paid to redeemable noncontrolling interests | (7,476 | ) | (7,085 | ) | |||
Distributions paid to preferred stockholders | (925 | ) | (924 | ) | |||
Distributions paid to common stockholders | (78,942 | ) | (72,704 | ) | |||
Other | (5,311 | ) | (3,966 | ) | |||
Net cash provided by/(used in) financing activities | 42,673 | (70,609 | ) | ||||
Net increase/(decrease) in cash and cash equivalents | 348 | (3,074 | ) | ||||
Cash and cash equivalents, beginning of period | 2,112 | 6,742 | |||||
Cash and cash equivalents, end of period | $ | 2,460 | $ | 3,668 | |||
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Supplemental Information: | |||||||
Interest paid during the period, net of amounts capitalized | $ | 32,463 | $ | 31,918 | |||
Cash paid/(refunds received) for income taxes | 171 | 267 | |||||
Non-cash transactions: | |||||||
Transfer of investment in and advances to unconsolidated joint ventures to real estate owned | $ | 32,260 | $ | — | |||
Vesting of LTIP Units | 2,317 | — | |||||
Development costs and capital expenditures incurred but not yet paid | 34,336 | 21,220 | |||||
Conversion of Operating Partnership and DownREIT Partnership noncontrolling interests to common stock (50,689 shares in 2017 and 0 shares in 2016) | 1,850 | — | |||||
Dividends declared but not yet paid | 91,436 | 86,963 |
Three Months Ended | |||
March 31, 2016 | |||
Return on investment in unconsolidated joint ventures - as previously presented | $ | — | |
Return on investment in unconsolidated joint ventures | 272 | ||
Return on investment in unconsolidated joint ventures - as presented herein | $ | 272 | |
Distributions received from unconsolidated joint ventures - as previously presented | $ | 7,983 | |
Return on investment in unconsolidated joint ventures | (272 | ) | |
Distributions received from unconsolidated joint ventures - as presented herein | $ | 7,711 |
Interest rate at | Balance outstanding | |||||||||
March 31, 2017 | March 31, 2017 | December 31, 2016 | ||||||||
Note due February 2020 (a) | 10.00 | % | $ | 12,994 | $ | 12,994 | ||||
Note due July 2017 (b) | 8.00 | % | 2,500 | 2,500 | ||||||
Note due October 2020 (c) | 8.00 | % | 1,296 | 1,296 | ||||||
Note due April 2021 (d) | 10.00 | % | 3,000 | 3,000 | ||||||
Total notes receivable, net | $ | 19,790 | $ | 19,790 |
(c) | The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $2.0 million, of which, $1.3 million has been funded. Interest payments are due when the loan matures. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $10.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (October 2020). |
March 31, 2017 | December 31, 2016 | ||||||
Land | $ | 1,812,797 | $ | 1,801,576 | |||
Depreciable property — held and used: | |||||||
Land improvements | 180,837 | 178,701 | |||||
Building, improvements, and furniture, fixtures and equipment | 7,400,098 | 7,291,570 | |||||
Under development: | |||||||
Land and land improvements | 111,028 | 111,028 | |||||
Building, improvements, and furniture, fixtures and equipment | 282,809 | 231,254 | |||||
Real estate held for disposition: | |||||||
Land and land improvements | — | 1,104 | |||||
Building, improvements, and furniture, fixtures and equipment | — | 520 | |||||
Real estate owned | 9,787,569 | 9,615,753 | |||||
Accumulated depreciation | (3,026,660 | ) | (2,923,625 | ) | |||
Real estate owned, net | $ | 6,760,909 | $ | 6,692,128 |
Joint Venture | Location of Properties | Number of Properties | Number of Apartment Homes | Investment at | UDR’s Ownership Interest | |||||||||||||||||||
March 31, 2017 | March 31, 2017 | March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | |||||||||||||||||||
Operating and development: | ||||||||||||||||||||||||
UDR/MetLife I | Los Angeles, CA | 1 development community (a) | 150 | $ | 29,182 | $ | 25,209 | 50.0 | % | 50.0 | % | |||||||||||||
UDR/MetLife II (b) | Various | 18 operating communities | 4,059 | 309,409 | 311,282 | 50.0 | % | 50.0 | % | |||||||||||||||
Other UDR/MetLife Development Joint Ventures | 1 operating community; | |||||||||||||||||||||||
Various | 4 development communities (a) | 1,437 | 156,096 | 160,979 | 50.6 | % | 50.6 | % | ||||||||||||||||
UDR/MetLife Vitruvian Park® | Addison, TX | 3 operating communities; | ||||||||||||||||||||||
1 development community (a); | ||||||||||||||||||||||||
5 land parcels | 1,513 | 73,154 | 72,414 | 50.0 | % | 50.0 | % | |||||||||||||||||
UDR/KFH | Washington, D.C. | 3 operating communities | 660 | 11,801 | 12,835 | 30.0 | % | 30.0 | % | |||||||||||||||
Investment in and advances to unconsolidated joint ventures, net, before participating loan investment and preferred equity investment | $ | 579,642 | $ | 582,719 | ||||||||||||||||||||
Income from investments for the three months ending March 31, | ||||||||||||||||||||||||
Investment at | ||||||||||||||||||||||||
Location | Rate | Years To Maturity | March 31, 2017 | December 31, 2016 | 2017 | 2016 | ||||||||||||||||||
Participating loan investment: | ||||||||||||||||||||||||
Steele Creek | Denver, CO | 6.5% | 0.3 | $ | 94,002 | $ | 94,003 | $ | 1,533 | $ | 1,519 | |||||||||||||
Preferred equity investment: | ||||||||||||||||||||||||
West Coast Development Joint Ventures (c) | Various | 6.5% (c) | N/A | 145,346 | 150,303 | $ | 12,766 | $ | 1,427 | |||||||||||||||
Total investment in and advances to unconsolidated joint ventures, net | $ | 818,990 | $ | 827,025 |
(a) | The number of apartment homes for the communities under development presented in the table above is based on the projected number of total homes upon completion of development. As of March 31, 2017, 1,018 apartment homes had been completed in Other UDR/MetLife Development Joint Ventures, and no apartment homes had been completed in UDR/MetLife I or in UDR/MetLife Vitruvian Park®. |
(b) | In September 2015, the 717 Olympic community, which is owned by the UDR/MetLife II joint venture, experienced extensive water damage due to a ruptured water pipe. For the three months ended March 31, 2017 and 2016, the Company recorded casualty-related charges/(recoveries) of $0.9 million and $(1.1) million, respectively, representing its proportionate share of the total charges/(recoveries) recognized. |
(c) | In May 2015, the Company entered into a joint venture agreement with an unaffiliated joint venture partner and agreed to pay $136.3 million for a 48% ownership interest in a portfolio of five communities that were under construction. The communities are located in three of the Company’s core, coastal markets: Seattle, Washington, Los Angeles and Orange County, California. UDR earns a 6.5% preferred return on its investment through each individual community’s date of stabilization, defined as when a community reaches 80% occupancy for 90 consecutive days, while the joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization, income and expense are shared based on each partner’s ownership percentage and the Company no longer receives a 6.5% preferred return on its investment in the stabilized community. The Company serves as property manager and earns a management fee during the lease-up phase and subsequent operation of each of the communities. The unaffiliated joint venture partner is the general partner of the joint venture and the developer of the communities. |
March 31, 2017 | December 31, 2016 | ||||||
Total real estate, net | $ | 2,904,183 | $ | 2,901,067 | |||
Cash and cash equivalents | 28,676 | 32,503 | |||||
Other assets | 17,288 | 19,047 | |||||
Total assets | $ | 2,950,147 | $ | 2,952,617 | |||
Amount due to/(from) UDR | $ | 2,746 | $ | 521 | |||
Third party debt, net | 1,811,490 | 1,794,379 | |||||
Accounts payable and accrued liabilities | 55,471 | 66,391 | |||||
Total liabilities | $ | 1,869,707 | $ | 1,861,291 | |||
Total equity | $ | 1,080,440 | $ | 1,091,326 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Total revenues | $ | 58,524 | $ | 55,037 | |||
Property operating expenses | (21,834 | ) | (23,413 | ) | |||
Real estate depreciation and amortization | (23,333 | ) | (18,943 | ) | |||
Operating income/(loss) | 13,357 | 12,681 | |||||
Interest expense | (17,690 | ) | (16,181 | ) | |||
Net income/(loss) | $ | (4,333 | ) | $ | (3,500 | ) |
Three Months Ended | |||||||||||||||
Principal Outstanding | March 31, 2017 | ||||||||||||||
March 31, 2017 | December 31, 2016 | Weighted Average Interest Rate | Weighted Average Years to Maturity | Number of Communities Encumbered | |||||||||||
Secured Debt: | |||||||||||||||
Fixed Rate Debt | |||||||||||||||
Mortgage notes payable (a) | $ | 401,135 | $ | 402,996 | 4.04 | % | 6.1 | 7 | |||||||
Fannie Mae credit facilities (b) | 355,836 | 355,836 | 5.06 | % | 2.6 | 10 | |||||||||
Deferred financing costs | (2,482 | ) | (2,681 | ) | |||||||||||
Total fixed rate secured debt, net | 754,489 | 756,151 | 4.53 | % | 4.4 | 17 | |||||||||
Variable Rate Debt | |||||||||||||||
Tax-exempt secured notes payable (c) | 94,700 | 94,700 | 1.42 | % | 5.9 | 2 | |||||||||
Fannie Mae credit facilities (b) | 182,606 | 280,946 | 2.05 | % | 1.3 | 5 | |||||||||
Deferred financing costs | (288 | ) | (939 | ) | |||||||||||
Total variable rate secured debt, net | 277,018 | 374,707 | 1.84 | % | 2.9 | 7 | |||||||||
Total Secured Debt, net | 1,031,507 | 1,130,858 | 3.80 | % | 4.0 | 24 | |||||||||
Unsecured Debt: | |||||||||||||||
Variable Rate Debt | |||||||||||||||
Borrowings outstanding under unsecured credit facility due January 2020 (d) (h) | — | — | — | % | 2.8 | ||||||||||
Borrowings outstanding under unsecured commercial paper program due April 2017 (e) (h) | 220,000 | — | 1.24 | % | 0.0 | ||||||||||
Borrowings outstanding under unsecured working capital credit facility due January 2019 (f) | 36,140 | 21,350 | 1.88 | % | 1.8 | ||||||||||
Term Loan Facility due January 2021 (d) (h) | 35,000 | 35,000 | 1.73 | % | 3.8 | ||||||||||
Fixed Rate Debt | |||||||||||||||
4.25% Medium-Term Notes due June 2018 (net of discounts of $501 and $608, respectively) (h) | 299,499 | 299,392 | 4.25 | % | 1.2 | ||||||||||
3.70% Medium-Term Notes due October 2020 (net of discounts of $28 and $30, respectively) (h) | 299,972 | 299,970 | 3.70 | % | 3.5 | ||||||||||
2.34% Term Loan Facility due January 2021 (d) (h) | 315,000 | 315,000 | 2.34 | % | 3.8 | ||||||||||
4.63% Medium-Term Notes due January 2022 (net of discounts of $1,715 and $1,805 respectively) (h) | 398,285 | 398,195 | 4.63 | % | 4.8 | ||||||||||
3.75% Medium-Term Notes due July 2024 (net of discounts of $756 and $782, respectively) (h) | 299,244 | 299,218 | 3.75 | % | 7.3 | ||||||||||
8.50% Debentures due September 2024 | 15,644 | 15,644 | 8.50 | % | 7.5 | ||||||||||
4.00% Medium-Term Notes due October 2025 (net of discounts of $585 and $602, respectively) (g) (h) | 299,415 | 299,398 | 4.00 | % | 8.5 | ||||||||||
2.95% Medium-Term Notes due September 2026 (h) | 300,000 | 300,000 | 2.95 | % | 9.4 | ||||||||||
Other | 21 | 21 | |||||||||||||
Deferred financing costs | (12,435 | ) | (12,568 | ) | |||||||||||
Total Unsecured Debt, net | 2,505,785 | 2,270,620 | 3.52 | % | 4.9 | ||||||||||
Total Debt, net | $ | 3,537,292 | $ | 3,401,478 | 3.67 | % | 4.6 |
March 31, 2017 | December 31, 2016 | ||||||
Borrowings outstanding | $ | 538,442 | $ | 636,782 | |||
Weighted average borrowings during the period ended | 604,002 | 737,802 | |||||
Maximum daily borrowings during the period ended | 636,782 | 813,544 | |||||
Weighted average interest rate during the period ended | 3.9 | % | 3.9 | % | |||
Weighted average interest rate at the end of the period | 4.0 | % | 3.8 | % |
March 31, 2017 | December 31, 2016 | ||||||
Total revolving credit facility | $ | 1,100,000 | $ | 1,100,000 | |||
Borrowings outstanding at end of period (1) | — | — | |||||
Weighted average daily borrowings during the period ended | 9,222 | 161,505 | |||||
Maximum daily borrowings during the period ended | 120,000 | 340,000 | |||||
Weighted average interest rate during the period ended | 1.6 | % | 1.4 | % | |||
Interest rate at end of the period | — | % | — | % |
March 31, 2017 | December 31, 2016 | ||||||
Total unsecured commercial paper program | $ | 500,000 | $ | — | |||
Borrowings outstanding at end of period | 220,000 | — | |||||
Weighted average daily borrowings during the period ended | 80,228 | — | |||||
Maximum daily borrowings during the period ended | 220,000 | — | |||||
Weighted average interest rate during the period ended | 1.2 | % | — | % | |||
Interest rate at end of the period | 1.2 | % | — | % |
March 31, 2017 | December 31, 2016 | ||||||
Total revolving working capital credit facility | $ | 75,000 | $ | 75,000 | |||
Borrowings outstanding at end of period | 36,140 | 21,350 | |||||
Weighted average daily borrowings during the period ended | 26,714 | 21,936 | |||||
Maximum daily borrowings during the period ended | 67,799 | 69,633 | |||||
Weighted average interest rate during the period ended | 1.7 | % | 1.4 | % | |||
Interest rate at end of the period | 1.9 | % | 1.7 | % |
Year | Total Fixed Secured Debt | Total Variable Secured Debt | Total Secured Debt | Total Unsecured Debt | Total Debt | |||||||||||||||
2017 | $ | 3,310 | $ | 46,568 | $ | 49,878 | $ | 220,000 | $ | 269,878 | ||||||||||
2018 | 74,637 | 136,038 | 210,675 | 300,000 | 510,675 | |||||||||||||||
2019 | 249,395 | 67,700 | 317,095 | 36,140 | 353,235 | |||||||||||||||
2020 | 198,076 | — | 198,076 | 300,000 | 498,076 | |||||||||||||||
2021 | 1,117 | — | 1,117 | 350,000 | 351,117 | |||||||||||||||
2022 | 1,157 | — | 1,157 | 400,000 | 401,157 | |||||||||||||||
2023 | 41,245 | — | 41,245 | — | 41,245 | |||||||||||||||
2024 | — | — | — | 315,644 | 315,644 | |||||||||||||||
2025 | 127,600 | — | 127,600 | 300,000 | 427,600 | |||||||||||||||
2026 | 50,000 | — | 50,000 | 300,000 | 350,000 | |||||||||||||||
Thereafter | — | 27,000 | 27,000 | — | 27,000 | |||||||||||||||
Subtotal | 746,537 | 277,306 | 1,023,843 | 2,521,784 | 3,545,627 | |||||||||||||||
Non-cash (a) | 7,952 | (288 | ) | 7,664 | (15,999 | ) | (8,335 | ) | ||||||||||||
Total | $ | 754,489 | $ | 277,018 | $ | 1,031,507 | $ | 2,505,785 | $ | 3,537,292 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Numerator for income/(loss) per share: | |||||||
Income/(loss) from continuing operations | $ | 26,264 | $ | 8,534 | |||
Gain/(loss) on sale of real estate owned, net of tax | 2,132 | 3,070 | |||||
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | (2,338 | ) | (905 | ) | |||
Net (income)/loss attributable to noncontrolling interests | (91 | ) | (306 | ) | |||
Net income/(loss) attributable to UDR, Inc. | 25,967 | 10,393 | |||||
Distributions to preferred stockholders — Series E (Convertible) | (929 | ) | (929 | ) | |||
Income/(loss) attributable to common stockholders - basic and diluted | $ | 25,038 | $ | 9,464 | |||
Denominator for income/(loss) per share: | |||||||
Weighted average common shares outstanding | 267,402 | 263,355 | |||||
Non-vested restricted stock awards | (612 | ) | (899 | ) | |||
Denominator for basic income/(loss) per share | 266,790 | 262,456 | |||||
Incremental shares issuable from assumed conversion of stock options, unvested LTIP Units and unvested restricted stock | 1,898 | 1,829 | |||||
Denominator for diluted income/(loss) per share | 268,688 | 264,285 | |||||
Income/(loss) per weighted average common share: | |||||||
Basic | $ | 0.09 | $ | 0.04 | |||
Diluted | $ | 0.09 | $ | 0.04 |
Three Months Ended | |||||
March 31, | |||||
2017 | 2016 | ||||
OP/DownREIT Units | 24,962 | 25,191 | |||
Convertible preferred stock | 3,028 | 3,028 | |||
Stock options, unvested LTIP Units and unvested restricted stock | 1,898 | 1,829 |
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, December 31, 2016 | $ | 909,482 | ||
Mark-to-market adjustment to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | 281 | |||
Conversion of OP Units/DownREIT Units to Common Stock | (1,850 | ) | ||
Net income/(loss) attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | 2,338 | |||
Distributions to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | (7,919 | ) | ||
Vesting of Long-Term Incentive Plan Units | 2,317 | |||
Allocation of other comprehensive income/(loss) | 129 | |||
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, March 31, 2017 | $ | 904,778 |
• | Level 1 — Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. |
• | Level 2 — Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. |
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
Fair Value at March 31, 2017, Using | |||||||||||||||||||
Total Carrying Amount in Statement of Financial Position at March 31, 2017 | Fair Value Estimate at March 31, 2017 | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
Description: | |||||||||||||||||||
Notes receivable (a) | $ | 19,790 | $ | 19,735 | $ | — | $ | — | $ | 19,735 | |||||||||
Derivatives - Interest rate contracts (b) | 5,067 | 5,067 | — | 5,067 | — | ||||||||||||||
Total assets | $ | 24,857 | $ | 24,802 | $ | — | $ | 5,067 | $ | 19,735 | |||||||||
Derivatives - Interest rate contracts (b) | $ | 9 | $ | 9 | $ | — | $ | 9 | $ | — | |||||||||
Secured debt instruments - fixed rate: (c) | |||||||||||||||||||
Mortgage notes payable | 401,135 | 395,504 | — | — | 395,504 | ||||||||||||||
Fannie Mae credit facilities | 355,836 | 365,391 | — | — | 365,391 | ||||||||||||||
Secured debt instruments - variable rate: (c) | |||||||||||||||||||
Tax-exempt secured notes payable | 94,700 | 94,700 | — | — | 94,700 | ||||||||||||||
Fannie Mae credit facilities | 182,606 | 182,606 | — | — | 182,606 | ||||||||||||||
Unsecured debt instruments: (c) | |||||||||||||||||||
Working capital credit facility | 36,140 | 36,140 | — | — | 36,140 | ||||||||||||||
Commercial paper program | 220,000 | 220,000 | — | — | 220,000 | ||||||||||||||
Unsecured notes | 2,262,059 | 2,302,863 | — | — | 2,302,863 | ||||||||||||||
Total liabilities | $ | 3,552,485 | $ | 3,597,213 | $ | — | $ | 9 | $ | 3,597,204 | |||||||||
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) | $ | 904,778 | $ | 904,778 | $ | — | $ | 904,778 | $ | — |
Fair Value at December 31, 2016, Using | |||||||||||||||||||
Total Carrying Amount in Statement of Financial Position at December 31, 2016 | Fair Value Estimate at December 31, 2016 | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
Description: | |||||||||||||||||||
Notes receivable (a) | $ | 19,790 | $ | 19,645 | $ | — | $ | — | $ | 19,645 | |||||||||
Derivatives - Interest rate contracts (b) | 4,360 | 4,360 | — | 4,360 | — | ||||||||||||||
Total assets | $ | 24,150 | $ | 24,005 | $ | — | $ | 4,360 | $ | 19,645 | |||||||||
Derivatives- Interest rate contracts (b) | $ | 413 | $ | 413 | $ | — | $ | 413 | $ | — | |||||||||
Secured debt instruments - fixed rate: (c) | |||||||||||||||||||
Mortgage notes payable | 402,996 | 396,045 | — | — | 396,045 | ||||||||||||||
Fannie Mae credit facilities | 355,836 | 365,693 | — | — | 365,693 | ||||||||||||||
Secured debt instruments - variable rate: (c) | |||||||||||||||||||
Tax-exempt secured notes payable | 94,700 | 94,700 | — | — | 94,700 | ||||||||||||||
Fannie Mae credit facilities | 280,946 | 280,946 | — | — | 280,946 | ||||||||||||||
Unsecured debt instruments: (c) | |||||||||||||||||||
Working capital credit facility | 21,350 | 21,350 | — | — | 21,350 | ||||||||||||||
Unsecured notes | 2,261,838 | 2,304,492 | — | — | 2,304,492 | ||||||||||||||
Total liabilities | $ | 3,418,079 | $ | 3,463,639 | $ | — | $ | 413 | $ | 3,463,226 | |||||||||
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) | $ | 909,482 | $ | 909,482 | $ | — | $ | 909,482 | $ | — |
Product | Number of Instruments | Notional | ||||
Interest rate swaps (a) | 4 | $ | 315,000 | |||
Interest rate caps | 2 | $ | 203,166 |
Product | Number of Instruments | Notional | ||||
Interest rate caps | 3 | $ | 133,107 |
Asset Derivatives (included in Other assets) | Liability Derivatives (included in Other liabilities) | ||||||||||||||
Fair Value at: | Fair Value at: | ||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | ||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate products | $ | 5,067 | $ | 4,359 | $ | 9 | $ | 413 | |||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Interest rate products | $ | — | $ | 1 | $ | — | $ | — |
Derivatives in Cash Flow Hedging Relationships | Unrealized holding gain/(loss) Recognized in OCI (Effective Portion) | Gain/(Loss) Reclassified from Accumulated OCI into Interest expense (Effective Portion) | Gain/(Loss) Recognized in Interest expense (Ineffective Portion and Amount Excluded from Effectiveness Testing) | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
Interest rate products | $ | 632 | $ | (811 | ) | $ | (764 | ) | $ | (935 | ) | $ | (54 | ) | $ | — |
Gain/(Loss) Recognized in Interest income and other income/(expense), net | ||||||||
Derivatives Not Designated as Hedging Instruments | 2017 | 2016 | ||||||
Three Months Ended March 31, | ||||||||
Interest rate products | $ | (1 | ) | $ | — |
Offsetting of Derivative Assets | |||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Assets Presented in the Consolidated Balance Sheets (a) | Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||
Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||||
March 31, 2017 | $ | 5,067 | $ | — | $ | 5,067 | $ | (5 | ) | $ | — | $ | 5,062 | ||||||||||
December 31, 2016 | $ | 4,360 | $ | — | $ | 4,360 | $ | (221 | ) | $ | — | $ | 4,139 |
Offsetting of Derivative Liabilities | |||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets (a) | Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||
Financial Instruments | Cash Collateral Posted | Net Amount | |||||||||||||||||||||
March 31, 2017 | $ | 9 | $ | — | $ | 9 | $ | (5 | ) | $ | — | $ | 4 | ||||||||||
December 31, 2016 | $ | 413 | $ | — | $ | 413 | $ | (221 | ) | $ | — | $ | 192 |
Number of Properties | Costs Incurred to Date (a) | Expected Costs to Complete | Average Ownership Stake | |||||||||
Wholly-owned — under development | 2 | $ | 393,837 | (b) | $ | 314,663 | 100 | % | ||||
Wholly-owned — redevelopment | 1 | 3,699 | (b) | 5,801 | 100 | % | ||||||
Joint ventures: | ||||||||||||
Unconsolidated joint ventures | 6 | 721,462 | 66,525 | (c) | 50 | % | ||||||
Participating loan investments | 1 | 94,002 | (d) | — | (e) | 0 | % | |||||
Preferred equity investments | 2 | 42,013 | (f) | — | 49 | % | ||||||
Total | $ | 1,255,013 | $ | 386,989 |
(a) | Represents 100% of project costs incurred as of March 31, 2017. |
(b) | Costs incurred as of March 31, 2017 include $25.3 million and $0.7 million of accrued fixed assets for development and redevelopment, respectively. |
(c) | Represents UDR’s proportionate share of expected remaining costs to complete the developments. |
(d) | Represents the participating loan balance funded as of March 31, 2017. |
(e) | Represents UDR's remaining participating loan commitment for Steele Creek. |
(f) | Represents UDR's investment in the West Coast Development Joint Ventures for the properties under development as of March 31, 2017. |
• | Same-Store Communities represent those communities acquired, developed, and stabilized prior to January 1, 2016 and held as of March 31, 2017. A comparison of operating results from the prior year is meaningful as these communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior period, there is no plan to conduct substantial redevelopment activities, and the community is not held for disposition within the current year. A community is considered to have stabilized occupancy once it achieves 90% occupancy for at least three consecutive months. |
• | Non-Mature Communities/Other represent those communities that do not meet the criteria to be included in Same-Store Communities, including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed use properties. |
Three Months Ended | |||||||
March 31, (a) | |||||||
2017 | 2016 | ||||||
Reportable apartment home segment rental income | |||||||
Same-Store Communities | |||||||
West Region | $ | 82,220 | $ | 78,409 | |||
Mid-Atlantic Region | 52,109 | 50,154 | |||||
Northeast Region | 37,921 | 36,460 | |||||
Southeast Region | 28,657 | 27,137 | |||||
Southwest Region | 10,679 | 10,125 | |||||
Non-Mature Communities/Other | 29,685 | 29,672 | |||||
Total segment and consolidated rental income | $ | 241,271 | $ | 231,957 | |||
Reportable apartment home segment NOI | |||||||
Same-Store Communities | |||||||
West Region | $ | 61,895 | $ | 59,146 | |||
Mid-Atlantic Region | 36,315 | 33,729 | |||||
Northeast Region | 26,901 | 26,360 | |||||
Southeast Region | 19,661 | 18,797 | |||||
Southwest Region | 6,678 | 6,331 | |||||
Non-Mature Communities/Other | 20,033 | 19,771 | |||||
Total segment and consolidated NOI | 171,483 | 164,134 | |||||
Reconciling items: | |||||||
Joint venture management and other fees | 2,570 | 2,858 | |||||
Property management | (6,635 | ) | (6,379 | ) | |||
Other operating expenses | (1,691 | ) | (1,752 | ) | |||
Real estate depreciation and amortization | (105,032 | ) | (105,339 | ) | |||
General and administrative | (13,075 | ) | (13,844 | ) | |||
Casualty-related (charges)/recoveries, net | (502 | ) | — | ||||
Other depreciation and amortization | (1,608 | ) | (1,553 | ) | |||
Income/(loss) from unconsolidated entities | 11,198 | 679 | |||||
Interest expense | (30,539 | ) | (31,104 | ) | |||
Interest income and other income/(expense), net | 427 | 431 | |||||
Tax (provision)/benefit, net | (332 | ) | 403 | ||||
Gain/(loss) on sale of real estate owned, net of tax | 2,132 | 3,070 | |||||
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | (2,338 | ) | (905 | ) | |||
Net (income)/loss attributable to noncontrolling interests | (91 | ) | (306 | ) | |||
Net income/(loss) attributable to UDR, Inc. | $ | 25,967 | $ | 10,393 |
March 31, 2017 | December 31, 2016 | ||||||
Reportable apartment home segment assets: | |||||||
Same-Store Communities: | |||||||
West Region | $ | 2,944,437 | $ | 2,938,073 | |||
Mid-Atlantic Region | 2,221,312 | 2,216,067 | |||||
Northeast Region | 1,858,432 | 1,857,193 | |||||
Southeast Region | 750,147 | 746,762 | |||||
Southwest Region | 283,979 | 283,260 | |||||
Non-Mature Communities/Other | 1,729,262 | 1,574,398 | |||||
Total segment assets | 9,787,569 | 9,615,753 | |||||
Accumulated depreciation | (3,026,660 | ) | (2,923,625 | ) | |||
Total segment assets — net book value | 6,760,909 | 6,692,128 | |||||
Reconciling items: | |||||||
Cash and cash equivalents | 2,460 | 2,112 | |||||
Restricted cash | 19,757 | 19,994 | |||||
Notes receivable, net | 19,790 | 19,790 | |||||
Investment in and advances to unconsolidated joint ventures, net | 818,990 | 827,025 | |||||
Other assets | 114,005 | 118,535 | |||||
Total consolidated assets | $ | 7,735,911 | $ | 7,679,584 |
i. | West Region — San Francisco, Orange County, Seattle, Los Angeles, Monterey Peninsula, Other Southern California and Portland |
ii. | Mid-Atlantic Region — Metropolitan D.C., Richmond and Baltimore |
iii. | Northeast Region — New York and Boston |
iv. | Southeast Region — Orlando, Tampa, Nashville and Other Florida |
v. | Southwest Region — Dallas and Austin |
March 31, 2017 | December 31, 2016 | ||||||
(unaudited) | (audited) | ||||||
ASSETS | |||||||
Real estate owned: | |||||||
Real estate held for investment | $ | 3,686,334 | $ | 3,674,704 | |||
Less: accumulated depreciation | (1,445,528 | ) | (1,408,815 | ) | |||
Total real estate owned, net of accumulated depreciation | 2,240,806 | 2,265,889 | |||||
Cash and cash equivalents | 864 | 756 | |||||
Restricted cash | 12,141 | 11,694 | |||||
Investment in unconsolidated entities | 103,267 | 112,867 | |||||
Other assets | 21,475 | 24,329 | |||||
Total assets | $ | 2,378,553 | $ | 2,415,535 | |||
LIABILITIES AND CAPITAL | |||||||
Liabilities: | |||||||
Secured debt, net | $ | 336,240 | $ | 433,974 | |||
Notes payable due to the General Partner | 273,334 | 273,334 | |||||
Real estate taxes payable | 8,409 | 2,104 | |||||
Accrued interest payable | 1,184 | 1,410 | |||||
Security deposits and prepaid rent | 15,874 | 14,593 | |||||
Distributions payable | 57,025 | 54,192 | |||||
Accounts payable, accrued expenses, and other liabilities | 14,239 | 17,429 | |||||
Total liabilities | 706,305 | 797,036 | |||||
Commitments and contingencies (Note 10) | |||||||
Capital: | |||||||
Partners’ capital: | |||||||
General partner: | |||||||
110,883 OP Units outstanding at March 31, 2017 and December 31, 2016 | 1,000 | 1,026 | |||||
Limited partners: | |||||||
183,240,041 and 183,167,815 OP Units outstanding at March 31, 2017 and December 31, 2016, respectively | 1,535,939 | 1,577,289 | |||||
Accumulated other comprehensive income/(loss), net | (53 | ) | (113 | ) | |||
Total partners’ capital | 1,536,886 | 1,578,202 | |||||
Advances (to)/from the General Partner | 114,380 | 19,659 | |||||
Noncontrolling interests | 20,982 | 20,638 | |||||
Total capital | 1,672,248 | 1,618,499 | |||||
Total liabilities and capital | $ | 2,378,553 | $ | 2,415,535 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
REVENUES: | |||||||
Rental income | $ | 102,605 | $ | 98,786 | |||
OPERATING EXPENSES: | |||||||
Property operating and maintenance | 16,518 | 16,060 | |||||
Real estate taxes and insurance | 11,024 | 10,174 | |||||
Property management | 2,822 | 2,717 | |||||
Other operating expenses | 1,548 | 1,500 | |||||
Real estate depreciation and amortization | 36,879 | 36,791 | |||||
General and administrative | 5,219 | 5,421 | |||||
Casualty-related (recoveries)/charges, net | 553 | — | |||||
Total operating expenses | 74,563 | 72,663 | |||||
Operating income | 28,042 | 26,123 | |||||
Income/(loss) from unconsolidated entities | (5,424 | ) | (13,387 | ) | |||
Interest expense | (5,558 | ) | (4,552 | ) | |||
Interest expense on note payable due to the General Partner | (3,053 | ) | (3,053 | ) | |||
Net income/(loss) | 14,007 | 5,131 | |||||
Net (income)/loss attributable to noncontrolling interests | (350 | ) | (344 | ) | |||
Net income/(loss) attributable to OP unitholders | $ | 13,657 | $ | 4,787 | |||
Net income/(loss) per weighted average OP Unit - basic and diluted | $ | 0.07 | $ | 0.03 | |||
Weighted average OP Units outstanding - basic and diluted | 183,324 | 183,279 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Net income/(loss) | $ | 14,007 | $ | 5,131 | |||
Other comprehensive income/(loss), including portion attributable to noncontrolling interests: | |||||||
Other comprehensive income/(loss) - derivative instruments: | |||||||
Unrealized holding gain/(loss) | — | (2 | ) | ||||
(Gain)/loss reclassified into earnings from other comprehensive income/(loss) | 54 | 1 | |||||
Other comprehensive income/(loss), including portion attributable to noncontrolling interests | 54 | (1 | ) | ||||
Comprehensive income/(loss) | 14,061 | 5,130 | |||||
Comprehensive (income)/loss attributable to noncontrolling interests | (350 | ) | (344 | ) | |||
Comprehensive income/(loss) attributable to OP unitholders | $ | 13,711 | $ | 4,786 |
Class A Limited Partners | Limited Partners and LTIP Units | UDR, Inc. | Accumulated Other Comprehensive Income/(Loss), net | Total Partners’ Capital | Advances (to)/from General Partner | Noncontrolling Interests | |||||||||||||||||||||||||||||
Limited Partner | General Partner | Total | |||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | $ | 63,901 | $ | 269,928 | $ | 1,243,460 | $ | 1,026 | $ | (113 | ) | $ | 1,578,202 | $ | 19,659 | $ | 20,638 | $ | 1,618,499 | ||||||||||||||||
Net income/(loss) | 130 | 549 | 12,970 | 8 | — | 13,657 | — | 350 | 14,007 | ||||||||||||||||||||||||||
Distributions | (582 | ) | (2,428 | ) | (53,980 | ) | (34 | ) | — | (57,024 | ) | — | — | (57,024 | ) | ||||||||||||||||||||
Adjustment to reflect limited partners’ capital at redemption value | 67 | (2,965 | ) | 2,898 | — | — | — | — | — | — | |||||||||||||||||||||||||
Long-Term Incentive Plan Unit grants | — | 1,991 | — | — | — | 1,991 | — | — | 1,991 | ||||||||||||||||||||||||||
Unrealized gain/(loss) on derivative financial investments | — | — | — | — | 60 | 60 | — | (6 | ) | 54 | |||||||||||||||||||||||||
Net change in advances (to)/from the General Partner | — | — | — | — | — | — | 94,721 | — | 94,721 | ||||||||||||||||||||||||||
Balance at March 31, 2017 | $ | 63,516 | $ | 267,075 | $ | 1,205,348 | $ | 1,000 | $ | (53 | ) | $ | 1,536,886 | $ | 114,380 | $ | 20,982 | $ | 1,672,248 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Operating Activities | |||||||
Net income/(loss) | $ | 14,007 | $ | 5,131 | |||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||
Depreciation and amortization | 36,879 | 36,791 | |||||
(Income)/loss from unconsolidated entities | 5,424 | 13,387 | |||||
Other | 1,491 | 684 | |||||
Changes in operating assets and liabilities: | |||||||
(Increase)/decrease in operating assets | 1,977 | (3,742 | ) | ||||
Increase/(decrease) in operating liabilities | 4,122 | 8,274 | |||||
Net cash provided by/(used in) operating activities | 63,900 | 60,525 | |||||
Investing Activities | |||||||
Capital expenditures and other major improvements — real estate assets, net of escrow reimbursement | (12,149 | ) | (10,744 | ) | |||
Distributions received from unconsolidated entities | 4,176 | 3,977 | |||||
Net cash provided by/(used in) investing activities | (7,973 | ) | (6,767 | ) | |||
Financing Activities | |||||||
Advances (to)/from the General Partner, net | 45,088 | (53,157 | ) | ||||
Payments on secured debt | (98,340 | ) | (275 | ) | |||
Distributions paid to partnership unitholders | (2,567 | ) | (2,327 | ) | |||
Net cash provided by/(used in) financing activities | (55,819 | ) | (55,759 | ) | |||
Net increase/(decrease) in cash and cash equivalents | 108 | (2,001 | ) | ||||
Cash and cash equivalents, beginning of period | 756 | 3,103 | |||||
Cash and cash equivalents, end of period | $ | 864 | $ | 1,102 | |||
Supplemental Information: | |||||||
Interest paid during the period, net of amounts capitalized | $ | 7,066 | $ | 5,515 | |||
Non-cash transactions: | |||||||
Development costs and capital expenditures incurred but not yet paid | $ | 4,816 | $ | 4,505 | |||
LTIP Unit grants | 1,991 | 663 | |||||
Dividends declared but not yet paid | 57,025 | 54,173 |
March 31, 2017 | December 31, 2016 | ||||||
Land | $ | 837,945 | $ | 836,644 | |||
Depreciable property — held and used: | |||||||
Buildings, improvements, and furniture, fixtures and equipment | 2,848,389 | 2,838,060 | |||||
Real estate owned | 3,686,334 | 3,674,704 | |||||
Accumulated depreciation | (1,445,528 | ) | (1,408,815 | ) | |||
Real estate owned, net | $ | 2,240,806 | $ | 2,265,889 |
March 31, 2017 | December 31, 2016 | ||||||
Total real estate, net | $ | 1,400,046 | $ | 1,413,983 | |||
Cash and cash equivalents | 35 | 66 | |||||
Note receivable from the General Partner | 126,500 | 126,500 | |||||
Other assets | 4,498 | 4,843 | |||||
Total assets | $ | 1,531,079 | $ | 1,545,392 | |||
Secured debt, net | 442,172 | 443,607 | |||||
Other liabilities | 23,976 | 27,571 | |||||
Total liabilities | 466,148 | 471,178 | |||||
Total capital | 1,064,931 | 1,074,214 | |||||
Total liabilities and capital | $ | 1,531,079 | $ | 1,545,392 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Rental income | $ | 33,298 | $ | 31,617 | |||
Property operating expenses | (13,976 | ) | (14,269 | ) | |||
Real estate depreciation and amortization | (20,608 | ) | (30,053 | ) | |||
Operating income/(loss) | (1,286 | ) | (12,705 | ) | |||
Interest expense | (3,860 | ) | (3,741 | ) | |||
Interest income on note receivable from the General Partner | 1,166 | 1,180 | |||||
Net income/(loss) | $ | (3,980 | ) | $ | (15,266 | ) |
Principal Outstanding | For the Three Months Ended March 31, 2017 | ||||||||||||||
March 31, 2017 | December 31, 2016 | Weighted Average Interest Rate | Weighted Average Years to Maturity | Number of Communities Encumbered | |||||||||||
Fixed Rate Debt | |||||||||||||||
Fannie Mae credit facilities | $ | 228,870 | $ | 244,912 | 5.07 | % | 2.6 | 6 | |||||||
Deferred financing costs | (718 | ) | (1,070 | ) | |||||||||||
Total fixed rate secured debt, net | 228,152 | 243,842 | 5.07 | % | 2.6 | 6 | |||||||||
Variable Rate Debt | |||||||||||||||
Tax-exempt secured note payable | 27,000 | 27,000 | 1.39 | % | 15.0 | 1 | |||||||||
Fannie Mae credit facilities | 81,339 | 163,637 | 2.34 | % | 1.7 | 2 | |||||||||
Deferred financing costs | (251 | ) | (505 | ) | |||||||||||
Total variable rate secured debt, net | 108,088 | 190,132 | 2.10 | % | 5.0 | 3 | |||||||||
Total Secured Debt, net | $ | 336,240 | $ | 433,974 | 4.26 | % | 3.4 | 9 |
March 31, 2017 | December 31, 2016 | ||||||
Borrowings outstanding | $ | 310,209 | $ | 408,549 | |||
Weighted average borrowings during the period ended | 375,770 | 414,759 | |||||
Maximum daily borrowings during the period ended | 408,549 | 421,001 | |||||
Weighted average interest rate during the period ended | 4.1 | % | 3.9 | % | |||
Interest rate at the end of the period | 4.4 | % | 4.0 | % |
Fixed | Variable | |||||||||||||||
Year | Secured Credit Facilities | Tax-Exempt Secured Notes Payable | Secured Credit Facilities | Total | ||||||||||||
2017 | $ | — | $ | — | $ | — | $ | — | ||||||||
2018 | 41,854 | — | 81,339 | 123,193 | ||||||||||||
2019 | 133,204 | — | — | 133,204 | ||||||||||||
2020 | 53,812 | — | — | 53,812 | ||||||||||||
2021 | — | — | — | — | ||||||||||||
2022 | — | — | — | — | ||||||||||||
2023 | — | — | — | — | ||||||||||||
2024 | — | — | — | — | ||||||||||||
2025 | — | — | — | — | ||||||||||||
2026 | — | — | — | — | ||||||||||||
Thereafter | — | 27,000 | — | 27,000 | ||||||||||||
Subtotal | 228,870 | 27,000 | 81,339 | 337,209 | ||||||||||||
Non-cash (a) | (718 | ) | (84 | ) | (167 | ) | (969 | ) | ||||||||
Total | $ | 228,152 | $ | 26,916 | $ | 81,172 | $ | 336,240 |
• | Level 1 — Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. |
• | Level 2 — Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. |
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
Fair Value at March 31, 2017, Using | |||||||||||||||||||
Total Carrying Amount in Statement of Financial Position at March 31, 2017 | Fair Value Estimate at March 31, 2017 | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
Description: | |||||||||||||||||||
Secured debt instruments - fixed rate: (a) | |||||||||||||||||||
Fannie Mae credit facilities | $ | 228,870 | $ | 235,159 | $ | — | $ | — | $ | 235,159 | |||||||||
Secured debt instruments - variable rate: (a) | |||||||||||||||||||
Tax-exempt secured notes payable | 27,000 | 27,000 | — | — | 27,000 | ||||||||||||||
Fannie Mae credit facilities | 81,339 | 81,339 | — | — | 81,339 | ||||||||||||||
Total liabilities | $ | 337,209 | $ | 343,498 | $ | — | $ | — | $ | 343,498 |
Fair Value at December 31, 2016, Using | |||||||||||||||||||
Total Carrying Amount in Statement of Financial Position at December 31, 2016 | Fair Value Estimate at December 31, 2016 | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
Description: | |||||||||||||||||||
Derivatives - Interest rate contracts (b) | $ | 1 | $ | 1 | $ | — | $ | 1 | $ | — | |||||||||
Total assets | $ | 1 | $ | 1 | $ | — | $ | 1 | $ | — | |||||||||
Secured debt instruments - fixed rate: (a) | |||||||||||||||||||
Fannie Mae credit facilities | $ | 244,912 | $ | 251,664 | $ | — | $ | — | $ | 251,664 | |||||||||
Secured debt instruments - variable rate: (a) | |||||||||||||||||||
Tax-exempt secured notes payable | 27,000 | 27,000 | — | — | 27,000 | ||||||||||||||
Fannie Mae credit facilities | 163,637 | 163,637 | — | — | 163,637 | ||||||||||||||
Total liabilities | $ | 435,549 | $ | 442,301 | $ | — | $ | — | $ | 442,301 |
Product | Number of Instruments | Notional | ||||
Interest rate caps | 1 | $ | 82,494 |
Product | Number of Instruments | Notional | ||||
Interest rate caps | 3 | $ | 87,580 |
Asset Derivatives (included in Other assets) | Liability Derivatives (included in Other liabilities) | ||||||||||||||
Fair Value at: | Fair Value at: | ||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | ||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate products | $ | — | $ | — | $ | — | $ | — | |||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Interest rate products | $ | — | $ | 1 | $ | — | $ | — |
Unrealized holding gain/(loss) Recognized in OCI (Effective Portion) | Gain/(Loss) Reclassified from Accumulated OCI into Interest expense (Effective Portion) | Gain/(Loss) Recognized in Interest expense (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
Interest rate products | $ | — | $ | (2 | ) | $ | — | $ | (1 | ) | $ | (54 | ) | $ | — |
Gain/(Loss) Recognized in Interest income and other income/(expense), net | ||||||||
Derivatives Not Designated as Hedging Instruments | 2017 | 2016 | ||||||
Three Months Ended March 31, | ||||||||
Interest rate products | $ | (1 | ) | $ | — |
Offsetting of Derivative Assets | |||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Assets Presented in the Consolidated Balance Sheets (a) | Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||
Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||||
March 31, 2017 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
December 31, 2016 | $ | 1 | $ | — | $ | 1 | $ | — | $ | — | $ | 1 |
Offsetting of Derivative Liabilities | |||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets (a) | Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||
Financial Instruments | Cash Collateral Posted | Net Amount | |||||||||||||||||||||
March 31, 2017 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
December 31, 2016 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Class A Limited Partners | UDR, Inc. | ||||||||||||||||
Limited Partners | Limited Partner | Class A Limited Partner | General Partner | Total | |||||||||||||
Ending balance at December 31, 2016 | 1,751,671 | 7,296,943 | 173,997,540 | 121,661 | 110,883 | 183,278,698 | |||||||||||
Vesting of LTIP Units | — | 72,226 | — | — | 72,226 | ||||||||||||
OP redemptions for UDR stock | — | (3,607 | ) | 3,607 | — | — | — | ||||||||||
Ending balance at March 31, 2017 | 1,751,671 | 7,365,562 | 174,001,147 | 121,661 | 110,883 | 183,350,924 |
• | Same-Store Communities represent those communities acquired, developed, and stabilized prior to January 1, 2016 and held as of March 31, 2017. A comparison of operating results from the prior year is meaningful as these communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior period, there is no plan to conduct substantial redevelopment activities, and the community is not held for disposition within the current year. A community is considered to have stabilized occupancy once it achieves 90% occupancy for at least 3 consecutive months. |
• | Non-Mature Communities/Other represent those communities that do not meet the criteria to be included in Same-Store Communities, including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed use properties. |
Three Months Ended | |||||||
March 31, (a) | |||||||
2017 | 2016 | ||||||
Reportable apartment home segment rental income | |||||||
Same-Store Communities | |||||||
West Region | $ | 50,482 | $ | 47,636 | |||
Mid-Atlantic Region | 14,748 | 14,167 | |||||
Northeast Region | 13,559 | 13,006 | |||||
Southeast Region | 12,271 | 11,696 | |||||
Non-Mature Communities/Other | 11,545 | 12,281 | |||||
Total segment and consolidated rental income | $ | 102,605 | $ | 98,786 | |||
Reportable apartment home segment NOI | |||||||
Same-Store Communities | |||||||
West Region | $ | 38,445 | $ | 36,159 | |||
Mid-Atlantic Region | 10,095 | 9,362 | |||||
Northeast Region | 10,131 | 10,057 | |||||
Southeast Region | 8,283 | 8,043 | |||||
Non-Mature Communities/Other | 8,109 | 8,931 | |||||
Total segment and consolidated NOI | 75,063 | 72,552 | |||||
Reconciling items: | |||||||
Property management | (2,822 | ) | (2,717 | ) | |||
Other operating expenses | (1,548 | ) | (1,500 | ) | |||
Real estate depreciation and amortization | (36,879 | ) | (36,791 | ) | |||
General and administrative | (5,219 | ) | (5,421 | ) | |||
Casualty-related recoveries/(charges), net | (553 | ) | — | ||||
Income/(loss) from unconsolidated entities | (5,424 | ) | (13,387 | ) | |||
Interest expense | (8,611 | ) | (7,605 | ) | |||
Net (income)/loss attributable to noncontrolling interests | (350 | ) | (344 | ) | |||
Net income/(loss) attributable to OP unitholders | $ | 13,657 | $ | 4,787 |
March 31, 2017 | December 31, 2016 | ||||||
Reportable apartment home segment assets | |||||||
Same-Store Communities | |||||||
West Region | $ | 1,601,136 | $ | 1,596,815 | |||
Mid-Atlantic Region | 656,850 | 655,693 | |||||
Northeast Region | 675,407 | 674,928 | |||||
Southeast Region | 330,214 | 328,729 | |||||
Non-Mature Communities/Other | 422,727 | 418,539 | |||||
Total segment assets | 3,686,334 | 3,674,704 | |||||
Accumulated depreciation | (1,445,528 | ) | (1,408,815 | ) | |||
Total segment assets - net book value | 2,240,806 | 2,265,889 | |||||
Reconciling items: | |||||||
Cash and cash equivalents | 864 | 756 | |||||
Restricted cash | 12,141 | 11,694 | |||||
Investment in unconsolidated entities | 103,267 | 112,867 | |||||
Other assets | 21,475 | 24,329 | |||||
Total consolidated assets | $ | 2,378,553 | $ | 2,415,535 |
i. | West Region — San Francisco, Orange County, Seattle, Los Angeles, Monterey Peninsula, Other Southern California and Portland |
ii. | Mid-Atlantic Region — Metropolitan, D.C. and Baltimore |
iii. | Northeast Region — New York and Boston |
iv. | Southeast Region — Tampa, Nashville and Other Florida |
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | unfavorable changes in apartment market and economic conditions that could adversely affect occupancy levels and rental rates; |
• | failure to generate sufficient revenue, which could impair our debt service payments and distributions to stockholders; |
• | potential damage from natural disasters, including hurricanes and other weather-related events, which could result in substantial costs to us; |
• | risks from extraordinary losses for which we may not have insurance or adequate reserves; |
• | uninsured losses due to insurance deductibles, self-insurance retention, uninsured claims or casualties, or losses in excess of applicable coverage; |
• | delays in completing developments and lease-ups on schedule; |
• | our failure to succeed in new markets; |
• | changing interest rates, which could increase interest costs and affect the market price of our securities; |
• | our internal control over financial reporting may not be considered effective which could result in a loss of investor confidence in our financial reports, and in turn have an adverse effect on our stock price; and |
Three Months Ended | ||||||||||||||||||||
March 31, 2017 | March 31, 2017 | |||||||||||||||||||
Number of Apartment Communities | Number of Apartment Homes | Percentage of Total Carrying Value | Total Carrying Value (in thousands) | Average Physical Occupancy | Monthly Income per Occupied Home (a) | |||||||||||||||
Same-Store Communities | ||||||||||||||||||||
West Region | ||||||||||||||||||||
San Francisco, CA | 10 | 2,558 | 7.4 | % | $ | 725,142 | 97.1 | % | $ | 3,374 | ||||||||||
Orange County, CA | 11 | 3,367 | 9.0 | % | 877,788 | 95.7 | % | 2,321 | ||||||||||||
Seattle, WA | 10 | 2,014 | 5.6 | % | 552,143 | 96.8 | % | 2,071 | ||||||||||||
Los Angeles, CA | 4 | 1,225 | 4.6 | % | 447,283 | 95.7 | % | 2,673 | ||||||||||||
Monterey Peninsula, CA | 7 | 1,565 | 1.7 | % | 169,221 | 96.5 | % | 1,580 | ||||||||||||
Other Southern California | 3 | 756 | 1.3 | % | 125,156 | 95.1 | % | 1,789 | ||||||||||||
Portland, OR | 2 | 476 | 0.5 | % | 47,704 | 96.7 | % | 1,529 | ||||||||||||
Mid-Atlantic Region | ||||||||||||||||||||
Metropolitan D.C. | 21 | 7,551 | 19.7 | % | 1,927,842 | 97.0 | % | 1,981 | ||||||||||||
Richmond, VA | 4 | 1,358 | 1.5 | % | 144,103 | 97.4 | % | 1,276 | ||||||||||||
Baltimore, MD | 3 | 720 | 1.5 | % | 149,367 | 96.0 | % | 1,697 | ||||||||||||
Northeast Region | ||||||||||||||||||||
New York, NY | 4 | 1,945 | 13.3 | % | 1,300,310 | 98.0 | % | 4,338 | ||||||||||||
Boston, MA | 5 | 1,548 | 5.7 | % | 558,122 | 96.1 | % | 2,939 | ||||||||||||
Southeast Region | ||||||||||||||||||||
Orlando, FL | 9 | 2,500 | 2.2 | % | 217,456 | 96.8 | % | 1,231 | ||||||||||||
Tampa, FL | 7 | 2,287 | 2.5 | % | 246,274 | 96.7 | % | 1,326 | ||||||||||||
Nashville, TN | 8 | 2,260 | 2.1 | % | 202,822 | 97.1 | % | 1,241 | ||||||||||||
Other Florida | 1 | 636 | 0.9 | % | 83,595 | 96.6 | % | 1,494 | ||||||||||||
Southwest Region | ||||||||||||||||||||
Dallas, TX | 6 | 2,040 | 2.0 | % | 195,053 | 97.4 | % | 1,202 | ||||||||||||
Austin, TX | 3 | 883 | 0.9 | % | 88,926 | 97.2 | % | 1,364 | ||||||||||||
Total/Average Same-Store Communities | 118 | 35,689 | 82.4 | % | 8,058,307 | 96.8 | % | $ | 2,043 | |||||||||||
Non-Mature, Commercial Properties & Other | 10 | 4,009 | 13.6 | % | 1,335,425 | |||||||||||||||
Total Real Estate Held for Investment | 128 | 39,698 | 96.0 | % | 9,393,732 | |||||||||||||||
Real Estate Under Development (b) | — | — | 4.0 | % | 393,837 | |||||||||||||||
Total Real Estate Owned | 128 | 39,698 | 100.0 | % | 9,787,569 | |||||||||||||||
Total Accumulated Depreciation | (3,026,660 | ) | ||||||||||||||||||
Total Real Estate Owned, Net of Accumulated Depreciation | $ | 6,760,909 |
(a) | Monthly Income per Occupied Home represents total monthly revenues divided by the average physical number of occupied apartment homes in our Same-Store portfolio. |
(b) | As of March 31, 2017, the Company was developing two wholly-owned communities with 1,101 apartment homes, none of which have been completed. |
Three Months Ended | |||
March 31, 2016 | |||
Net cash provided by/(used in) operating activities - as previously presented | $ | 112,489 | |
Return on investment in unconsolidated joint ventures | 272 | ||
Net cash provided by/(used in) operating activities - as reported herein | $ | 112,761 | |
Net cash provided by/(used in) investing activities - as previously presented | $ | (44,954 | ) |
Return on investment in unconsolidated joint ventures | (272 | ) | |
Net cash provided by/(used in) investing activities - as reported herein | $ | (45,226 | ) |
• | a decrease of 52.6% or $2.9 million in major renovations, primarily due to lower redevelopment spend. |
• | an increase of 25.3% or $1.8 million in revenue-enhancing improvements, such as kitchen and bath remodels and upgrades to common areas. |
Per Home | |||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||||
Turnover capital expenditures | $ | 2,121 | $ | 2,462 | (13.9 | )% | $ | 53 | $ | 60 | (11.7 | )% | |||||||||
Asset preservation expenditures | 4,670 | 4,499 | 3.8 | % | 118 | 110 | 7.3 | % | |||||||||||||
Total recurring capital expenditures | 6,791 | 6,961 | (2.4 | )% | 171 | 171 | — | % | |||||||||||||
Revenue enhancing improvements | 8,982 | 7,171 | 25.3 | % | 226 | 176 | 28.4 | % | |||||||||||||
Major renovations (a) | 2,638 | 5,570 | (52.6 | )% | 67 | 137 | (51.1 | )% | |||||||||||||
Total capital expenditures | $ | 18,411 | $ | 19,702 | (6.6 | )% | $ | 464 | $ | 484 | (4.1 | )% | |||||||||
Repair and maintenance expense | $ | 7,803 | $ | 8,121 | (3.9 | )% | $ | 197 | $ | 199 | (1.0 | )% | |||||||||
Average number of homes (b) | 39,698 | 40,728 | (2.5 | )% |
(a) | Major renovations include major structural changes and/or architectural revisions to existing buildings. |
(b) | Average number of homes is calculated based on the number of homes outstanding at the end of each month. |
• | our proportionate share of the net income/(loss) of the joint ventures and partnerships was $11.2 million; |
• | our investment in unconsolidated joint ventures decreased by $32.3 million primarily due to the acquisition of 100% interest in an operating community previously held as an unconsolidated entity, partially offset by capital contributions; and |
• | we received distributions of $11.2 million, of which $1.5 million were operating cash flows and $9.7 million were investing cash flows. |
• | net proceeds of $220.0 million under our unsecured commercial paper program; |
• | repaid $99.5 million of secured debt; |
• | net proceeds of $14.8 million under the Company’s unsecured revolving credit facilities; and |
• | paid distributions of $78.9 million to our common stockholders. |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Net cash provided by/(used in) operating activities | $ | 120,464 | $ | 112,761 | |||
Net cash provided by/(used in) investing activities | (162,789 | ) | (45,226 | ) | |||
Net cash provided by/(used in) financing activities | 42,673 | (70,609 | ) |
• | an increase in total property NOI of $7.3 million primarily due to higher revenue per occupied home and NOI from communities acquired in 2017 and 2016, partially offset by a decrease from sold communities; and |
• | an increase in income from unconsolidated entities of $10.5 million primarily due to a gain on consolidation of $12.2 million from the purchase of a previously unconsolidated operating community in Seattle, Washington from our West Coast Development Joint Ventures during the three months ended March 31, 2017. |
• | gains, net of tax, of $2.1 million on the sale of a parcel of land in Richmond, Virginia during the three months ended March 31, 2017, as compared to gains, net of tax, of $3.1 million from the sale of two parcels of land in Santa Monica, California during the three months ended March 31, 2016. |
Three Months Ended | ||||||||||
March 31, (a) | ||||||||||
2017 | 2016 | % Change | ||||||||
Same-Store Communities: | ||||||||||
Same-store rental income | $ | 211,586 | $ | 202,285 | 4.6 | % | ||||
Same-store operating expense (b) | (60,136 | ) | (57,922 | ) | 3.8 | % | ||||
Same-store NOI | 151,450 | 144,363 | 4.9 | % | ||||||
Non-Mature Communities/Other NOI: | ||||||||||
Stabilized, non-mature communities NOI (c) | 14,689 | 11,078 | 32.6 | % | ||||||
Acquired communities NOI | 857 | — | — | % | ||||||
Redevelopment communities NOI | 1,066 | 1,075 | (0.8 | )% | ||||||
Development communities NOI | (153 | ) | (79 | ) | 93.7 | % | ||||
Non-residential/other NOI | 3,575 | 2,735 | 30.7 | % | ||||||
Sold and held for disposition communities NOI | (1 | ) | 4,962 | (100.0 | )% | |||||
Total non-mature communities/other NOI | 20,033 | 19,771 | 1.3 | % | ||||||
Total Property NOI | $ | 171,483 | $ | 164,134 | 4.5 | % |
(c) | Represents non-mature communities that have achieved 90% occupancy for three consecutive months but do not meet the criteria to be included in Same-Store Communities. |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Net income/(loss) attributable to UDR, Inc. | $ | 25,967 | $ | 10,393 | |||
Joint venture management and other fees | (2,570 | ) | (2,858 | ) | |||
Property management | 6,635 | 6,379 | |||||
Other operating expenses | 1,691 | 1,752 | |||||
Real estate depreciation and amortization | 105,032 | 105,339 | |||||
General and administrative | 13,075 | 13,844 | |||||
Casualty-related charges/(recoveries), net | 502 | — | |||||
Other depreciation and amortization | 1,608 | 1,553 | |||||
(Income)/loss from unconsolidated entities | (11,198 | ) | (679 | ) | |||
Interest expense | 30,539 | 31,104 | |||||
Interest income and other (income)/expense, net | (427 | ) | (431 | ) | |||
Tax provision/(benefit), net | 332 | (403 | ) | ||||
(Gain)/loss on sale of real estate owned, net of tax | (2,132 | ) | (3,070 | ) | |||
Net income/(loss) attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | 2,338 | 905 | |||||
Net income/(loss) attributable to noncontrolling interests | 91 | 306 | |||||
Total property NOI | $ | 171,483 | $ | 164,134 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Net income/(loss) attributable to common stockholders | $ | 25,038 | $ | 9,464 | |||
Real estate depreciation and amortization | 105,032 | 105,339 | |||||
Noncontrolling interests | 2,429 | 1,211 | |||||
Real estate depreciation and amortization on unconsolidated joint ventures | 13,767 | 10,350 | |||||
Net gain on the sale of unconsolidated depreciable property | (12,158 | ) | — | ||||
Net gain on the sale of depreciable real estate owned | (552 | ) | (1,385 | ) | |||
Funds from operations (“FFO”) attributable to common stockholders and unitholders, basic | $ | 133,556 | $ | 124,979 | |||
Distribution to preferred stockholders — Series E (Convertible) | 929 | 929 | |||||
FFO attributable to common stockholders and unitholders, diluted | $ | 134,485 | $ | 125,908 | |||
Income/(loss) per weighted average common share - diluted | $ | 0.09 | $ | 0.04 | |||
FFO per common share and unit, basic | $ | 0.46 | $ | 0.43 | |||
FFO per common share and unit, diluted | $ | 0.45 | $ | 0.43 | |||
Weighted average number of common shares and OP/DownREIT Units outstanding — basic | 291,752 | 287,647 | |||||
Weighted average number of common shares, OP/DownREIT Units, and common stock equivalents outstanding — diluted | 296,678 | 292,504 | |||||
Impact of adjustments to FFO: | |||||||
Cost/(benefit) associated with debt extinguishment and other | $ | 1,516 | $ | — | |||
Long-term incentive plan transition costs | — | 323 | |||||
Net gain on the sale of non-depreciable real estate owned | (1,580 | ) | (1,685 | ) | |||
Casualty-related (recoveries)/charges, net | 502 | — | |||||
Casualty-related (recoveries)/charges on unconsolidated joint ventures, net | (881 | ) | 1,126 | ||||
$ | (443 | ) | $ | (236 | ) | ||
FFO as Adjusted attributable to common stockholders and unitholders, diluted | $ | 134,042 | $ | 125,672 | |||
FFO as Adjusted per common share and unit, diluted | $ | 0.45 | $ | 0.43 | |||
Recurring capital expenditures | (6,791 | ) | (6,961 | ) | |||
AFFO attributable to common stockholders and unitholders | $ | 127,251 | $ | 118,711 | |||
AFFO per common share and unit, diluted | $ | 0.43 | $ | 0.41 |
Three Months Ended | |||||
March 31, | |||||
2017 | 2016 | ||||
Weighted average number of common shares and OP/DownREIT Units outstanding — basic | 291,752 | 287,647 | |||
Weighted average number of OP/DownREIT Units outstanding | (24,962 | ) | (25,191 | ) | |
Weighted average number of common shares outstanding — basic per the Consolidated Statements of Operations | 266,790 | 262,456 | |||
Weighted average number of common shares, OP/DownREIT Units, and common stock equivalents outstanding — diluted | 296,678 | 292,504 | |||
Weighted average number of OP/DownREIT Units outstanding | (24,962 | ) | (25,191 | ) | |
Weighted average number of Series E preferred shares outstanding | (3,028 | ) | (3,028 | ) | |
Weighted average number of common shares outstanding — diluted per the Consolidated Statements of Operations | 268,688 | 264,285 |
Three Months Ended | ||||||||||||||||||||
March 31, 2017 | March 31, 2017 | |||||||||||||||||||
Same-Store Communities | Number of Apartment Communities | Number of Apartment Homes | Percentage of Total Carrying Value | Total Carrying Value (in thousands) | Average Physical Occupancy | Monthly Income per Occupied Home (a) | ||||||||||||||
West Region | ||||||||||||||||||||
San Francisco, CA | 8 | 1,992 | 12.7 | % | $ | 465,508 | 97.1 | % | $ | 3,011 | ||||||||||
Orange County, CA | 6 | 2,052 | 13.4 | % | 494,598 | 95.7 | % | 2,266 | ||||||||||||
Seattle, WA | 5 | 932 | 6.0 | % | 220,571 | 96.9 | % | 1,885 | ||||||||||||
Los Angeles, CA | 2 | 344 | 3.0 | % | 111,072 | 95.9 | % | 2,537 | ||||||||||||
Monterey Peninsula, CA | 7 | 1,565 | 4.6 | % | 169,221 | 96.5 | % | 1,579 | ||||||||||||
Other Southern California | 2 | 516 | 2.5 | % | 92,462 | 94.9 | % | 1,889 | ||||||||||||
Portland, OR | 2 | 476 | 1.3 | % | 47,704 | 96.7 | % | 1,529 | ||||||||||||
Mid-Atlantic Region | ||||||||||||||||||||
Metropolitan D.C. | 6 | 2,068 | 15.0 | % | 554,444 | 97.3 | % | 2,057 | ||||||||||||
Baltimore, MD | 2 | 540 | 2.8 | % | 102,406 | 96.1 | % | 1,501 | ||||||||||||
Northeast Region | ||||||||||||||||||||
New York, NY | 2 | 996 | 16.4 | % | 605,300 | 97.3 | % | 3,921 | ||||||||||||
Boston, MA | 1 | 387 | 1.9 | % | 70,107 | 96.1 | % | 1,935 | ||||||||||||
Southeast Region | ||||||||||||||||||||
Tampa, FL | 2 | 942 | 2.8 | % | 104,257 | 97.1 | % | 1,383 | ||||||||||||
Nashville, TN | 6 | 1,612 | 3.8 | % | 142,362 | 97.3 | % | 1,216 | ||||||||||||
Other Florida | 1 | 636 | 2.3 | % | 83,595 | 96.6 | % | 1,493 | ||||||||||||
Total/Average Same-Store Communities | 52 | 15,058 | 88.5 | % | 3,263,607 | 96.7 | % | $ | 2,085 | |||||||||||
Non-Mature, Commercial Properties & Other | 2 | 1,640 | 11.5 | % | 422,727 | |||||||||||||||
Total Real Estate Owned | 54 | 16,698 | 100.0 | % | 3,686,334 | |||||||||||||||
Total Accumulated Depreciation | (1,445,528 | ) | ||||||||||||||||||
Total Real Estate Owned, Net of Accumulated Depreciation | $ | 2,240,806 |
(a) | Monthly Income per Occupied Home represents total monthly revenues divided by the average physical number of occupied apartment homes in our Same-Store portfolio. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net cash provided by/(used in) operating activities | $ | 63,900 | $ | 60,525 | |||
Net cash provided by/(used in) investing activities | (7,973 | ) | (6,767 | ) | |||
Net cash provided by/(used in) financing activities | (55,819 | ) | (55,759 | ) |
• | an increase of $2.5 million in total property NOI primarily due to higher revenue per occupied home; and |
• | losses from unconsolidated entities of $5.4 million for the three months ended March 31, 2017 as compared to $13.4 million for the three months ended March 31, 2016, primarily due to a reduction in depreciation and amortization at the DownREIT Partnership. |
Three Months Ended | ||||||||||
March 31, (a) | ||||||||||
2017 | 2016 | % Change | ||||||||
Same-Store Communities: | ||||||||||
Same-store rental income | $ | 91,060 | $ | 86,505 | 5.3 | % | ||||
Same-store operating expense (b) | (24,106 | ) | (22,884 | ) | 5.3 | % | ||||
Same-store NOI | 66,954 | 63,621 | 5.2 | % | ||||||
Non-Mature Communities/Other NOI: | ||||||||||
Stabilized, non-mature communities NOI (c) | 7,122 | 7,092 | 0.4 | % | ||||||
Non-residential/other NOI | 987 | 1,073 | (8.0 | )% | ||||||
Sold and held for disposition communities NOI | — | 766 | (100.0 | )% | ||||||
Total non-mature communities/other NOI | 8,109 | 8,931 | (9.2 | )% | ||||||
Total Property NOI | $ | 75,063 | $ | 72,552 | 3.5 | % |
(a) | Same-Store consists of 15,058 apartment homes. |
(b) | Excludes depreciation, amortization, and property management expenses. |
(c) | Represents non-mature communities that have achieved 90% occupancy for three consecutive months but do not meet the criteria to be included in Same-Store Communities. |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Net income/(loss) attributable to OP unitholders | $ | 13,657 | $ | 4,787 | |||
Property management | 2,822 | 2,717 | |||||
Other operating expenses | 1,548 | 1,500 | |||||
Real estate depreciation and amortization | 36,879 | 36,791 | |||||
General and administrative | 5,219 | 5,421 | |||||
Casualty-related charges/(recoveries), net | 553 | — | |||||
(Income)/loss from unconsolidated entities | 5,424 | 13,387 | |||||
Interest expense | 8,611 | 7,605 | |||||
Net income/(loss) attributable to noncontrolling interests | 350 | 344 | |||||
Total property NOI | $ | 75,063 | $ | 72,552 |
• | downturns in the global, national, regional and local economic conditions, particularly increases in unemployment; |
• | declines in mortgage interest rates, making alternative housing more affordable; |
• | government or builder incentives with respect to home ownership, making alternative housing options more attractive; |
• | local real estate market conditions, including oversupply of, or reduced demand for, apartment homes; |
• | declines in the financial condition of our tenants, which may make it more difficult for us to collect rents from some tenants; |
• | changes in market rental rates; |
• | our ability to renew leases or re-lease space on favorable terms; |
• | the timing and costs associated with property improvements, repairs or renovations; |
• | declines in household formation; and |
• | rent control or stabilization laws, or other laws regulating rental housing, which could prevent us from raising rents to offset increases in operating costs. |
• | a significant portion of the proceeds from our overall property sales may be held by intermediaries in order for some sales to qualify as like-kind exchanges under Section 1031 of the Internal Revenue Code of 1986, as amended, or the “Code,” so that any related capital gain can be deferred for federal income tax purposes. As a result, we may not have immediate access to all of the cash proceeds generated from our property sales; and |
• | federal tax laws limit our ability to profit on the sale of communities that we have owned for less than two years, and this limitation may prevent us from selling communities when market conditions are favorable. |
• | we may be unable to obtain financing for acquisitions on favorable terms, including but not limited to interest rates, maturity dates and/or loan-to-value ratios, or at all, all of which could cause us to delay or even abandon potential acquisitions; |
• | even if we are able to finance the acquisition, cash flow from the acquisition may be insufficient to meet our required principal and interest payments on the debt used to finance the acquisition; |
• | even if we enter into an acquisition agreement for an apartment community, we may not complete the acquisition for a variety of reasons after incurring certain acquisition-related costs; |
• | we may incur significant costs and divert management attention in connection with the evaluation and negotiation of potential acquisitions, including potential acquisitions that we are subsequently unable to complete; |
• | when we acquire an apartment community, we may invest additional amounts in it with the intention of increasing profitability, and these additional investments may not produce the anticipated improvements in profitability; |
• | the expected occupancy rates and rental rates may differ from actual results; and |
• | we may be unable to quickly and efficiently integrate acquired apartment communities and new personnel into our existing operations, and the failure to successfully integrate such apartment communities or personnel will result in inefficiencies that could materially adversely affect our expected return on our investments and our overall profitability. |
• | we may be unable to obtain construction financing for development activities on favorable terms, including but not limited to interest rates, maturity dates and/or loan to value ratios, or at all, which could cause us to delay or even abandon potential developments; |
• | we may be unable to obtain, or face delays in obtaining, necessary zoning, land-use, building, occupancy and other required governmental permits and authorizations, which could result in increased development costs, could delay initial occupancy dates for all or a portion of a development community, and could require us to abandon our activities entirely with respect to a project for which we are unable to obtain permits or authorizations; |
• | yields may be less than anticipated as a result of delays in completing projects, costs that exceed budget and/or higher than expected concessions for lease up and lower rents than expected; |
• | if we are unable to find joint venture partners to help fund the development of a community or otherwise obtain acceptable financing for the developments, our development capacity may be limited; |
• | we may abandon development opportunities that we have already begun to explore, and we may fail to recover expenses already incurred in connection with exploring such opportunities; |
• | we may be unable to complete construction and lease-up of a community on schedule, or incur development or construction costs that exceed our original estimates, and we may be unable to charge rents that would compensate for any increase in such costs; |
• | occupancy rates and rents at a newly developed community may fluctuate depending on a number of factors, including market and economic conditions, preventing us from meeting our profitability goals for that community; and |
• | when we sell to third parties communities or properties that we developed or renovated, we may be subject to warranty or construction defect claims that are uninsured or exceed the limits of our insurance. |
• | inability to accurately evaluate local apartment market conditions and local economies; |
• | inability to hire and retain key personnel; |
• | lack of familiarity with local governmental and permitting procedures; and |
• | inability to achieve budgeted financial results. |
• | the national and local economies; |
• | local real estate market conditions, such as an oversupply of apartment homes; |
• | tenants’ perceptions of the safety, convenience, and attractiveness of our communities and the neighborhoods where they are located; |
• | our ability to provide adequate management, maintenance and insurance; |
• | rental expenses, including real estate taxes and utilities; |
• | competition from other apartment communities; |
• | changes in interest rates and the availability of financing; |
• | changes in governmental regulations and the related costs of compliance; and |
• | changes in tax and housing laws, including the enactment of rent control laws or other laws regulating multifamily housing. |
• | general market and economic conditions; |
• | actual or anticipated variations in UDR’s quarterly operating results or dividends or UDR’s payment of dividends in shares of UDR’s stock; |
• | changes in our funds from operations or earnings estimates; |
• | difficulties or inability to access capital or extend or refinance existing debt; |
• | decreasing (or uncertainty in) real estate valuations; |
• | changes in market valuations of similar companies; |
• | publication of research reports about us or the real estate industry; |
• | the general reputation of real estate investment trusts and the attractiveness of their equity securities in comparison to other equity securities (including securities issued by other real estate companies); |
• | general stock and bond market conditions, including changes in interest rates on fixed income securities, that may lead prospective purchasers of UDR’s stock to demand a higher annual yield from future dividends; |
• | a change in analyst ratings; |
• | additions or departures of key management personnel; |
• | adverse market reaction to any additional debt we incur in the future; |
• | speculation in the press or investment community; |
• | terrorist activity which may adversely affect the markets in which UDR’s securities trade, possibly increasing market volatility and causing the further erosion of business and consumer confidence and spending; |
• | failure to qualify as a REIT; |
• | strategic decisions by us or by our competitors, such as acquisitions, divestments, spin-offs, joint ventures, strategic investments or changes in business strategy; |
• | failure to satisfy listing requirements of the NYSE; |
• | governmental regulatory action and changes in tax laws; and |
• | the issuance of additional shares of UDR’s common stock, or the perception that such sales might occur, including under UDR’s at-the-market equity distribution program. |
Period | Total Number of Shares Purchased | Weighted Average Price per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (a) | |||||||||
Beginning Balance | 9,967,490 | $ | 22.00 | 9,967,490 | 15,032,510 | ||||||||
January 1, 2017 through January 31, 2017 | — | — | — | 15,032,510 | |||||||||
February 1, 2017 through February 28, 2017 | — | — | — | 15,032,510 | |||||||||
March 1, 2017 through March 31, 2017 | — | — | — | 15,032,510 | |||||||||
Balance as of March 31, 2017 | 9,967,490 | $ | 22.00 | 9,967,490 | 15,032,510 |
(a) | This number reflects the amount of shares that were available for purchase under our 10 million share repurchase program authorized in February 2006 and our 15 million share repurchase program authorized in January 2008. |
Period | Total Number of Shares Purchased | Average Price Paid per Share (a) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||
January 1, 2017 through January 31, 2017 | 21,732 | $ | 35.95 | N/A | N/A | ||||||
February 1, 2017 through February 28, 2017 | 94,145 | 34.84 | N/A | N/A | |||||||
March 1, 2017 through March 31, 2017 | — | — | N/A | N/A | |||||||
Total | 115,877 | $ | 35.05 |
(a) | The price paid per share is based on the closing price of our common stock as of the date of the determination of the statutory minimum for federal and state tax obligations. |
UDR, Inc. | |||
Date: | April 25, 2017 | /s/ Joseph D. Fisher | |
Joseph D. Fisher | |||
Senior Vice President and Chief Financial Officer (Principal Financial Officer) | |||
United Dominion Realty, L.P. | |||
By: | UDR, Inc., its general partner | ||
Date: | April 25, 2017 | /s/ Joseph D. Fisher | |
Joseph D. Fisher | |||
Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
Exhibit No. | Description | |
3.1 | Articles of Restatement of UDR, Inc. (incorporated by reference to Exhibit 3.09 to UDR, Inc.’s Current Report on Form 8-K dated July 27, 2005 and filed with the SEC on August 1, 2005). | |
3.2 | Articles of Amendment to the Articles of Restatement of UDR, Inc. dated and filed with the State Department of Assessments and Taxation of the State of Maryland on March 14, 2007 (incorporated by reference to Exhibit 3.2 to UDR, Inc.’s Current Report on Form 8-K dated March 14, 2007 and filed with the SEC on March 15, 2007). | |
3.3 | Articles of Amendment to the Articles of Restatement of UDR, Inc. dated August 30, 2011 and filed with the State Department of Assessments and Taxation of the State of Maryland on August 31, 2011 (incorporated by reference to Exhibit 3.1 to UDR, Inc.’s Current Report on Form 8-K dated August 29, 2011 and filed with the SEC on September 1, 2011). | |
3.4 | Articles Supplementary relating to UDR, Inc.’s 6.75% Series G Cumulative Redeemable Preferred Stock dated and filed with the State Department of Assessments and Taxation of the State of Maryland on May 30, 2007 (incorporated by reference to Exhibit 3.4 to UDR, Inc.’s Form 8-A Registration Statement dated and filed with the SEC on May 30, 2007). | |
3.5 | Certificate of Limited Partnership of United Dominion Realty, L.P. dated February 19, 2004 (incorporated by reference to Exhibit 3.4 to United Dominion Realty, L.P.’s Post-Effective Amendment No. 1 to Registration Statement on Form S-3 dated and filed with the SEC on October 15, 2010). | |
3.6 | Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated as of February 23, 2004 (incorporated by reference to Exhibit 10.23 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2003). | |
3.7 | First Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated June 24, 2005 (incorporated by reference to Exhibit 10.06 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2005). | |
3.8 | Second Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated February 23, 2006 (incorporated by reference to Exhibit 10.6 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006). | |
3.9 | Third Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated February 2, 2007 (incorporated by reference to Exhibit 99.1 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009). | |
3.1 | Fourth Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated December 27, 2007 (incorporated by reference to Exhibit 10.25 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2007). | |
3.11 | Fifth Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated March 7, 2008 (incorporated by reference to Exhibit 10.53 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2008). | |
3.12 | Sixth Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated December 9, 2008 (incorporated by reference to Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated December 9, 2008 and filed with the Commission on December 10, 2008). | |
Exhibit No. | Description | |
3.13 | Seventh Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P., dated as of March 13, 2009 (incorporated by reference to Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated March 18, 2009 and filed with the SEC on March 19, 2009). | |
3.14 | Eighth Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P., dated as of November 17, 2010 (incorporated by reference to Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated November 18, 2010 and filed with the SEC on November 18, 2010). | |
3.15 | Ninth Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P., dated as of December 4, 2015 (incorporated by reference to Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated December 4, 2015 and filed with the SEC on December 10, 2015). | |
3.16 | Amended and Restated Bylaws of UDR, Inc. (as amended through May 12, 2016) (incorporated by reference to Exhibit 3.1 to UDR, Inc.’s Current Report on Form 8-K dated May 12, 2016 and filed with the SEC on May 18, 2016). | |
10.1* | UDR, Inc. 1999 Long-Term Incentive Plan (as amended and restated February 2, 2017) (incorporated by reference to Exhibit 10.1 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2016). | |
10.2* | Form of UDR, Inc. Restricted Stock Award Agreement under the 1999 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2016). | |
10.3* | Indemnification Agreement by and between UDR, Inc. and each of its directors and officers listed on Schedule A thereto (incorporated by reference to Exhibit 10.7 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2016). | |
10.4 | First Amendment, dated January 20, 2017, to the Credit Agreement, dated as of October 20, 2015, by and among UDR, Inc., as borrower, and the lenders and agents party thereto (incorporated by reference to Exhibit 10.24 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2016). | |
12.1 | Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends of UDR, Inc. | |
12.2 | Computation of Ratio of Earnings to Fixed Charges of United Dominion Realty, L.P. | |
31.1 | Rule 13a-14(a) Certification of the Chief Executive Officer of UDR, Inc. | |
31.2 | Rule 13a-14(a) Certification of the Chief Financial Officer of UDR, Inc. | |
31.3 | Rule 13a-14(a) Certification of the Chief Executive Officer of UDR Inc., general partner of United Dominion Realty, L.P. | |
31.4 | Rule 13a-14(a) Certification of the Chief Financial Officer of UDR Inc., general partner of United Dominion Realty, L.P. | |
32.1 | Section 1350 Certification of the Chief Executive Officer of UDR, Inc. | |
32.2 | Section 1350 Certification of the Chief Financial Officer of UDR, Inc. | |
Exhibit No. | Description | |
32.3 | Section 1350 Certification of the Chief Executive Officer of UDR Inc., general partner of United Dominion Realty, L.P. | |
32.4 | Section 1350 Certification of the Chief Financial Officer of UDR Inc., general partner of United Dominion Realty, L.P. | |
101 | XBRL (Extensible Business Reporting Language). The following materials from this Quarterly Report on Form 10-Q for the periods ended March 31, 2017, formatted in XBRL: (i) consolidated balance sheets of UDR, Inc., (ii) consolidated statements of operations of UDR, Inc., (iii) consolidated statements of comprehensive income/(loss) of UDR, Inc., (iv) consolidated statements of changes in equity of UDR, Inc., (v) consolidated statements of cash flows of UDR, Inc., (vi) notes to consolidated financial statements of UDR, Inc., (vii) consolidated balance sheets of United Dominion Realty, L.P., (viii) consolidated statements of operations of United Dominion Realty, L.P., (ix) consolidated statements of comprehensive income/(loss) of United Dominion Realty, L.P., (x) consolidated statements of changes in capital of United Dominion Realty, L.P., (xi) consolidated statements of cash flows of United Dominion Realty, L.P., and (xii) notes to consolidated financial statements of United Dominion Realty, L.P. | |
* Management Contract or Compensatory Plan or Arrangement |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Earnings: | |||||||
Income/(loss) from continuing operations | $ | 26,264 | $ | 8,534 | |||
Add (from continuing operations): | |||||||
Interest on indebtedness (a) | 30,539 | 31,104 | |||||
Portion of rents representative of the interest factor | 484 | 483 | |||||
Amortization of capitalized interest | 1,194 | 1,052 | |||||
Total earnings | $ | 58,481 | $ | 41,173 | |||
Fixed charges and preferred stock dividends (from continuing operations): | |||||||
Interest on indebtedness (a) | $ | 30,539 | $ | 31,104 | |||
Interest capitalized | 4,706 | 4,203 | |||||
Portion of rents representative of the interest factor | 484 | 483 | |||||
Fixed charges | $ | 35,729 | $ | 35,790 | |||
Add: | |||||||
Preferred stock dividends | 929 | 929 | |||||
Combined fixed charges and preferred stock dividends | $ | 36,658 | $ | 36,719 | |||
Ratio of earnings to fixed charges | 1.64 | 1.15 | |||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 1.60 | 1.12 |
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Earnings: | |||||||
Income/(loss) from continuing operations | $ | 14,007 | $ | 5,131 | |||
Add from continuing operations: | |||||||
Interest on indebtedness (a) | 8,611 | 7,605 | |||||
Portion of rents representative of the interest factor | 462 | 453 | |||||
Amortization of capitalized interest | 186 | 176 | |||||
Total earnings | $ | 23,266 | $ | 13,365 | |||
Fixed charges from continuing operations: | |||||||
Interest on indebtedness (a) | $ | 8,611 | $ | 7,605 | |||
Interest capitalized | 3 | 124 | |||||
Portion of rents representative of the interest factor | 462 | 453 | |||||
Fixed charges | $ | 9,076 | $ | 8,182 | |||
Ratio of earnings to fixed charges | 2.56 | 1.63 |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | April 25, 2017 | /s/ Thomas W. Toomey | ||
Thomas W. Toomey | ||||
Chief Executive Officer and President (Principal Executive Officer) |
Date: | April 25, 2017 | /s/ Joseph D. Fisher | ||
Joseph D. Fisher | ||||
Chief Financial Officer and Senior Vice President (Principal Financial Officer) |
Date: | April 25, 2017 | /s/ Thomas W. Toomey | ||
Thomas W. Toomey | ||||
Chief Executive Officer and President (Principal Executive Officer) of UDR, Inc., | ||||
general partner of United Dominion Realty, L.P. |
Date: | April 25, 2017 | /s/ Joseph D. Fisher | |
Joseph D. Fisher | |||
Chief Financial Officer and Senior Vice President (Principal Financial Officer) of UDR, Inc., | |||
general partner of United Dominion Realty, L.P. |
Date: | April 25, 2017 | /s/ Thomas W. Toomey | |
Thomas W. Toomey | |||
Chief Executive Officer and President (Principal Executive Officer) |
Date: | April 25, 2017 | /s/ Joseph D. Fisher | |
Joseph D. Fisher | |||
Chief Financial Officer and Senior Vice President (Principal Financial Officer) |
Date: | April 25, 2017 | /s/ Thomas W. Toomey | |
Thomas W. Toomey | |||
Chief Executive Officer and President (Principal Executive Officer) of UDR, Inc., | |||
general partner of United Dominion Realty, L.P. |
Date: | April 25, 2017 | /s/ Joseph D. Fisher | |
Joseph D. Fisher | |||
Chief Financial Officer and Senior Vice President (Principal Financial Officer) of UDR, Inc., | |||
general partner of United Dominion Realty, L.P. |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Real estate owned: | ||
Real estate under development accumulated depreciation | $ 0 | $ 0 |
Real estate held for disposition accumulated depreciation | $ 0 | $ 553 |
Equity: | ||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 267,398,819 | 267,259,469 |
Common stock, shares outstanding | 267,398,819 | 267,259,469 |
Series F Preferred Stock [Member] | ||
Equity: | ||
Preferred stock, shares issued | 16,155,807 | 16,196,889 |
Preferred stock, shares outstanding | 16,155,807 | 16,196,889 |
Series E Preferred Stock [Member] | ||
Equity: | ||
Preferred Stock, Dividend Rate, Percentage | 8.00% | 8.00% |
Preferred stock, shares issued | 2,796,903 | 2,796,903 |
Preferred stock, shares outstanding | 2,796,903 | 2,796,903 |
Consolidated Statements of Comprehensive Income / (Loss) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2017 |
Mar. 31, 2016 |
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Net income/(loss) | $ 28,396 | $ 11,604 |
Other comprehensive income/(loss), including portion attributable to noncontrolling interests: | ||
Unrealized holding gain/(loss) | 632 | (811) |
(Gain)/loss reclassified into earnings from other comprehensive income/(loss) | 818 | 935 |
Other comprehensive income/(loss), including portion attributable to noncontrolling interests | 1,450 | 124 |
Comprehensive income/(loss) | 29,846 | 11,728 |
Comprehensive (income)/loss attributable to noncontrolling interests | (2,558) | (692) |
Comprehensive income/(loss) attributable to UDR, Inc. | $ 27,288 | $ 11,036 |
Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) |
3 Months Ended |
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Mar. 31, 2017
$ / shares
| |
Common distributions declared per share | $ 0.310 |
Series E Preferred Stock [Member] | |
Preferred stock distributions declared | $ 0.3322 |
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
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Non-cash transactions: | ||
Conversion of OP Units into common shares | 50,689 | 0 |
Consolidated Balance Sheets (UNITED DOMINION REALTY, L.P) (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
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Real estate held for disposition accumulated depreciation | $ 0 | $ 553 |
Partners' Capital: | ||
OP units outstanding related to limited partner | 183,350,924 | 183,278,698 |
United Dominion Reality L.P. [Member] | ||
Partners' Capital: | ||
OP units outstanding related to general partner | 110,883 | 110,883 |
OP units outstanding related to limited partner | 183,240,041 | 183,167,815 |
Consolidation and Basis of Presentation |
3 Months Ended |
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Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATION AND BASIS OF PRESENTATION | BASIS OF PRESENTATION Basis of Presentation UDR, Inc., collectively with our consolidated subsidiaries (“UDR,” the “Company,” “we,” “our,” or “us”), is a self-administered real estate investment trust, or REIT, that owns, operates, acquires, renovates, develops, redevelops, and manages apartment communities. The accompanying consolidated financial statements include the accounts of UDR and its subsidiaries, including United Dominion Realty, L.P. (the “Operating Partnership” or the “OP”) and UDR Lighthouse DownREIT L.P. (the “DownREIT Partnership”). As of March 31, 2017, there were 183,350,924 units in the Operating Partnership ("OP Units") outstanding, of which 174,233,691 OP Units, or 95.0%, were owned by UDR and 9,117,233 OP Units, or 5.0%, were owned by outside limited partners. As of March 31, 2017, there were 32,367,380 units in the DownREIT Partnership (“DownREIT Units”) outstanding, of which 16,532,096, or 51.1%, were owned by UDR (including 13,470,651 DownREIT Units, or 41.6%, that were held by the Operating Partnership) and 15,835,284, or 48.9%, were owned by outside limited partners. The consolidated financial statements of UDR include the noncontrolling interests of the unitholders in the Operating Partnership and DownREIT Partnership. The accompanying interim unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments and eliminations necessary for the fair presentation of our financial position as of March 31, 2017, and results of operations for the three months ended March 31, 2017 and 2016 have been included. Such adjustments are normal and recurring in nature. The interim results presented are not necessarily indicative of results that can be expected for a full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2016 appearing in UDR’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 21, 2017. The accompanying interim unaudited consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the interim unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company evaluated subsequent events through the date its financial statements were issued. No significant recognized or non-recognized subsequent events were noted. |
Consolidation and Basis of Presentation (UNITED DOMINION REALTY, L.P.) |
3 Months Ended |
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Mar. 31, 2017 | |
Entity Information [Line Items] | |
CONSOLIDATION AND BASIS OF PRESENTATION | BASIS OF PRESENTATION Basis of Presentation UDR, Inc., collectively with our consolidated subsidiaries (“UDR,” the “Company,” “we,” “our,” or “us”), is a self-administered real estate investment trust, or REIT, that owns, operates, acquires, renovates, develops, redevelops, and manages apartment communities. The accompanying consolidated financial statements include the accounts of UDR and its subsidiaries, including United Dominion Realty, L.P. (the “Operating Partnership” or the “OP”) and UDR Lighthouse DownREIT L.P. (the “DownREIT Partnership”). As of March 31, 2017, there were 183,350,924 units in the Operating Partnership ("OP Units") outstanding, of which 174,233,691 OP Units, or 95.0%, were owned by UDR and 9,117,233 OP Units, or 5.0%, were owned by outside limited partners. As of March 31, 2017, there were 32,367,380 units in the DownREIT Partnership (“DownREIT Units”) outstanding, of which 16,532,096, or 51.1%, were owned by UDR (including 13,470,651 DownREIT Units, or 41.6%, that were held by the Operating Partnership) and 15,835,284, or 48.9%, were owned by outside limited partners. The consolidated financial statements of UDR include the noncontrolling interests of the unitholders in the Operating Partnership and DownREIT Partnership. The accompanying interim unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments and eliminations necessary for the fair presentation of our financial position as of March 31, 2017, and results of operations for the three months ended March 31, 2017 and 2016 have been included. Such adjustments are normal and recurring in nature. The interim results presented are not necessarily indicative of results that can be expected for a full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2016 appearing in UDR’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 21, 2017. The accompanying interim unaudited consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the interim unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company evaluated subsequent events through the date its financial statements were issued. No significant recognized or non-recognized subsequent events were noted. |
United Dominion Reality L.P. [Member] | |
Entity Information [Line Items] | |
CONSOLIDATION AND BASIS OF PRESENTATION | CONSOLIDATION AND BASIS OF PRESENTATION Basis of Presentation United Dominion Realty, L.P. (“UDR, L.P.,” the “Operating Partnership,” “we” or “our”) is a Delaware limited partnership, that owns, acquires, renovates, redevelops, manages, and disposes of multifamily apartment communities generally located in high barrier to entry markets located in the United States. The high barrier to entry markets are characterized by limited land for new construction, difficult and lengthy entitlement process, expensive single-family home prices and significant employment growth potential. UDR, L.P. is a subsidiary of UDR, Inc. (“UDR” or the “General Partner”), a self-administered real estate investment trust, or REIT, through which UDR conducts a significant portion of its business. During both the three months ended March 31, 2017 and 2016, rental revenues of the Operating Partnership represented 43% of the General Partner’s consolidated rental revenues. As of March 31, 2017, the Operating Partnership’s apartment portfolio consisted of 54 communities located in 14 markets consisting of 16,698 apartment homes. Interests in UDR, L.P. are represented by operating partnership units (“OP Units”). The Operating Partnership’s net income is allocated to the partners, which is initially based on their respective distributions made during the year and secondly, their percentage interests. Distributions are made in accordance with the terms of the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. (the “Operating Partnership Agreement”), on a per unit basis that is generally equal to the dividend per share on UDR’s common stock, which is publicly traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “UDR.” As of March 31, 2017, there were 183,350,924 OP Units outstanding, of which 174,233,691, or 95.0%, were owned by UDR and affiliated entities and 9,117,233, or 5.0%, were owned by non-affiliated limited partners. See Note 9, Capital Structure. The accompanying interim unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments and eliminations necessary for the fair presentation of our financial position as of March 31, 2017, and results of operations for the three months ended March 31, 2017 and 2016 have been included. Such adjustments are normal and recurring in nature. The interim results presented are not necessarily indicative of results that can be expected for a full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2016 included in the Annual Report on Form 10-K filed by UDR and the Operating Partnership with the SEC on February 21, 2017. The accompanying interim unaudited consolidated statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the interim unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All intercompany accounts and transactions have been eliminated in consolidation. The Operating Partnership evaluated subsequent events through the date its financial statements were issued. No recognized or non-recognized subsequent events were noted. |
Significant Accounting Policies |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The ASU changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for the Company on January 1, 2018; early adoption is permitted. The ASU will be applied prospectively to any transactions occurring within the period of adoption. The Company expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash. The ASU addresses the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. The ASU addresses specific cash flow items with the objective of reducing existing diversity in practice, including the treatment of distributions received from equity method investees. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company elected to early adopt ASU 2016-15 in 2016 and elected to classify distributions received from equity method investees using the cumulative earnings approach. As a result, for the three months ended March 31, 2016, the following amounts classified under the adopted ASU as returns on investment in unconsolidated joint ventures were reclassified on the Consolidated Statements of Cash Flow (in thousands):
In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and to present the net amount of the financial instrument expected to be collected. The updated standard will be effective for the Company on January 1, 2020; early adoption is permitted on January 1, 2019. The Company is currently evaluating the effect that the updated standard will have on the consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. The ASU aims to simplify the accounting for share-based payments by amending the accounting for forfeitures, statutory tax withholding requirements, classification in the statements of cash flow and income taxes. The updated standard was effective for the Company on January 1, 2017, at which time the Company prospectively began accounting for forfeitures as incurred and began applying the updated rules for statutory withholdings. As a result of adopting the ASU, the Company recorded a one-time adjustment for existing estimated forfeitures of $0.6 million as of January 1, 2017 to Distributions in Excess of Net Income on January 1, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. Full retrospective application is prohibited. The standard will be effective for the Company on January 1, 2019, with early adoption permitted. While the Company is currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures, we expect to recognize right-of-use assets and related lease liabilities on our consolidated balance sheets related to ground leases on any communities where we are the lessee. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, including industry-specific revenue guidance. The standard specifically excludes lease contracts. The ASU allows for the use of either the full or modified retrospective transition method and will be effective for the Company on January 1, 2018, at which time the Company expects to adopt the updated standard using the modified retrospective approach. However, as the majority of the Company’s revenue is from rental income related to leases, the Company does not expect the ASU to have a material impact on the consolidated financial statements and related disclosures. Principles of Consolidation The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Company first evaluates whether each entity is a variable interest entity ("VIE"). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. Discontinued Operations In accordance with GAAP, a discontinued operation represents (1) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (2) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (1) a separate major line of business, (2) a separate major geographic area of operations, (3) a major equity method investment, or (4) other major parts of an entity. We record sales of real estate that do not meet the definition of a discontinued operation in Gain/(loss) on sale of real estate owned, net of tax on the Consolidated Statements of Operations. Revenue and Real Estate Sales Gain Recognition Rental income related to leases is recognized on an accrual basis when due from residents and tenants in accordance with GAAP. Rental payments are generally due on a monthly basis and recognized when earned. The Company recognizes interest income, management and other fees and incentives when earned, and the amounts are fixed and determinable. For sale transactions meeting the requirements for full accrual profit recognition, we remove the related assets and liabilities from our Consolidated Balance Sheets and record the gain or loss in the period the transaction closes. For sale transactions that do not meet the full accrual sale criteria due to our continuing involvement, we evaluate the nature of the continuing involvement and account for the transaction under an alternate method of accounting. Unless certain limited criteria are met, non-monetary transactions, including property exchanges, are accounted for at fair value. Sales to entities in which we retain or otherwise own an interest are accounted for as partial sales. If all other requirements for recognizing profit under the full accrual method have been satisfied and no other forms of continuing involvement are present, we recognize profit proportionate to the outside interest of the buyer and defer the gain on the interest we retain. The Company recognizes any deferred gain when the property is sold to a third party. In transactions accounted for by us as partial sales, we determine if the buyer of the majority equity interest in the venture was provided a preference as to cash flows in either an operating or a capital waterfall. If a cash flow preference has been provided, we recognize profit only to the extent that proceeds from the sale of the majority equity interest exceed costs related to the entire property. Notes Receivable The following table summarizes our notes receivable, net as of March 31, 2017 and December 31, 2016 (dollars in thousands):
(a) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $13.0 million. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the eighth anniversary of the date of the note (February 2020). (b) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $2.5 million. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (July 2017).
(d) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $15.0 million, of which, $3.0 million has been funded. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $25.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (April 2021). The Company recognized $0.5 million and $0.4 million of interest income from notes receivable during the three months ended March 31, 2017 and 2016, respectively, none of which was related party interest income. Interest income is included in Interest income and other income/(expense), net on the Consolidated Statements of Operations. Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to stockholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three months ended March 31, 2017 and 2016, the Company’s other comprehensive income/(loss) consisted of the gain/(loss) (effective portion) on derivative instruments that are designated as and qualify as cash flow hedges, (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) into earnings, and the allocation of other comprehensive income/(loss) to noncontrolling interests. The (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) is included in Interest expense on the Consolidated Statements of Operations. See Note 10, Derivatives and Hedging Activity, for further discussion. The allocation of other comprehensive income/(loss) to redeemable noncontrolling interests during the three months ended March 31, 2017 and 2016 was $0.1 million and $(0.5) million, respectively. Income Taxes Due to the structure of the Company as a REIT and the nature of the operations for the operating properties, no provision for federal income taxes has been provided for at UDR. Historically, the Company has generally incurred only state and local excise and franchise taxes. UDR has elected for certain consolidated subsidiaries to be treated as taxable REIT subsidiaries (“TRS”). Income taxes for our TRS are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. The Company’s deferred tax assets are generally the result of differing depreciable lives on capitalized assets and timing of expense recognition for certain accrued liabilities. As of March 31, 2017 and December 31, 2016, UDR’s net deferred tax asset was $0.4 million and $0.6 million, respectively. GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition. The Company recognizes its tax positions and evaluates them using a two-step process. First, UDR determines whether a tax position is more likely than not (greater than 50 percent probability) to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. UDR had no material unrecognized tax benefit, accrued interest or penalties at March 31, 2017. UDR and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The tax years 2013 through 2016 remain open to examination by tax jurisdictions to which we are subject. When applicable, UDR recognizes interest and/or penalties related to uncertain tax positions in Tax (provision)/benefit, net on the Consolidated Statements of Operations. |
Significant Accounting Policies (UNITED DOMINION REALTY, L.P.) |
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SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The ASU changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for the Company on January 1, 2018; early adoption is permitted. The ASU will be applied prospectively to any transactions occurring within the period of adoption. The Company expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash. The ASU addresses the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. The ASU addresses specific cash flow items with the objective of reducing existing diversity in practice, including the treatment of distributions received from equity method investees. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company elected to early adopt ASU 2016-15 in 2016 and elected to classify distributions received from equity method investees using the cumulative earnings approach. As a result, for the three months ended March 31, 2016, the following amounts classified under the adopted ASU as returns on investment in unconsolidated joint ventures were reclassified on the Consolidated Statements of Cash Flow (in thousands):
In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and to present the net amount of the financial instrument expected to be collected. The updated standard will be effective for the Company on January 1, 2020; early adoption is permitted on January 1, 2019. The Company is currently evaluating the effect that the updated standard will have on the consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. The ASU aims to simplify the accounting for share-based payments by amending the accounting for forfeitures, statutory tax withholding requirements, classification in the statements of cash flow and income taxes. The updated standard was effective for the Company on January 1, 2017, at which time the Company prospectively began accounting for forfeitures as incurred and began applying the updated rules for statutory withholdings. As a result of adopting the ASU, the Company recorded a one-time adjustment for existing estimated forfeitures of $0.6 million as of January 1, 2017 to Distributions in Excess of Net Income on January 1, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. Full retrospective application is prohibited. The standard will be effective for the Company on January 1, 2019, with early adoption permitted. While the Company is currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures, we expect to recognize right-of-use assets and related lease liabilities on our consolidated balance sheets related to ground leases on any communities where we are the lessee. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, including industry-specific revenue guidance. The standard specifically excludes lease contracts. The ASU allows for the use of either the full or modified retrospective transition method and will be effective for the Company on January 1, 2018, at which time the Company expects to adopt the updated standard using the modified retrospective approach. However, as the majority of the Company’s revenue is from rental income related to leases, the Company does not expect the ASU to have a material impact on the consolidated financial statements and related disclosures. Principles of Consolidation The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Company first evaluates whether each entity is a variable interest entity ("VIE"). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. Discontinued Operations In accordance with GAAP, a discontinued operation represents (1) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (2) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (1) a separate major line of business, (2) a separate major geographic area of operations, (3) a major equity method investment, or (4) other major parts of an entity. We record sales of real estate that do not meet the definition of a discontinued operation in Gain/(loss) on sale of real estate owned, net of tax on the Consolidated Statements of Operations. Revenue and Real Estate Sales Gain Recognition Rental income related to leases is recognized on an accrual basis when due from residents and tenants in accordance with GAAP. Rental payments are generally due on a monthly basis and recognized when earned. The Company recognizes interest income, management and other fees and incentives when earned, and the amounts are fixed and determinable. For sale transactions meeting the requirements for full accrual profit recognition, we remove the related assets and liabilities from our Consolidated Balance Sheets and record the gain or loss in the period the transaction closes. For sale transactions that do not meet the full accrual sale criteria due to our continuing involvement, we evaluate the nature of the continuing involvement and account for the transaction under an alternate method of accounting. Unless certain limited criteria are met, non-monetary transactions, including property exchanges, are accounted for at fair value. Sales to entities in which we retain or otherwise own an interest are accounted for as partial sales. If all other requirements for recognizing profit under the full accrual method have been satisfied and no other forms of continuing involvement are present, we recognize profit proportionate to the outside interest of the buyer and defer the gain on the interest we retain. The Company recognizes any deferred gain when the property is sold to a third party. In transactions accounted for by us as partial sales, we determine if the buyer of the majority equity interest in the venture was provided a preference as to cash flows in either an operating or a capital waterfall. If a cash flow preference has been provided, we recognize profit only to the extent that proceeds from the sale of the majority equity interest exceed costs related to the entire property. Notes Receivable The following table summarizes our notes receivable, net as of March 31, 2017 and December 31, 2016 (dollars in thousands):
(a) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $13.0 million. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the eighth anniversary of the date of the note (February 2020). (b) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $2.5 million. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (July 2017).
(d) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $15.0 million, of which, $3.0 million has been funded. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $25.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (April 2021). The Company recognized $0.5 million and $0.4 million of interest income from notes receivable during the three months ended March 31, 2017 and 2016, respectively, none of which was related party interest income. Interest income is included in Interest income and other income/(expense), net on the Consolidated Statements of Operations. Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to stockholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three months ended March 31, 2017 and 2016, the Company’s other comprehensive income/(loss) consisted of the gain/(loss) (effective portion) on derivative instruments that are designated as and qualify as cash flow hedges, (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) into earnings, and the allocation of other comprehensive income/(loss) to noncontrolling interests. The (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) is included in Interest expense on the Consolidated Statements of Operations. See Note 10, Derivatives and Hedging Activity, for further discussion. The allocation of other comprehensive income/(loss) to redeemable noncontrolling interests during the three months ended March 31, 2017 and 2016 was $0.1 million and $(0.5) million, respectively. Income Taxes Due to the structure of the Company as a REIT and the nature of the operations for the operating properties, no provision for federal income taxes has been provided for at UDR. Historically, the Company has generally incurred only state and local excise and franchise taxes. UDR has elected for certain consolidated subsidiaries to be treated as taxable REIT subsidiaries (“TRS”). Income taxes for our TRS are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. The Company’s deferred tax assets are generally the result of differing depreciable lives on capitalized assets and timing of expense recognition for certain accrued liabilities. As of March 31, 2017 and December 31, 2016, UDR’s net deferred tax asset was $0.4 million and $0.6 million, respectively. GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition. The Company recognizes its tax positions and evaluates them using a two-step process. First, UDR determines whether a tax position is more likely than not (greater than 50 percent probability) to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. UDR had no material unrecognized tax benefit, accrued interest or penalties at March 31, 2017. UDR and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The tax years 2013 through 2016 remain open to examination by tax jurisdictions to which we are subject. When applicable, UDR recognizes interest and/or penalties related to uncertain tax positions in Tax (provision)/benefit, net on the Consolidated Statements of Operations. |
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United Dominion Reality L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The ASU changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for the Operating Partnership on January 1, 2018; early adoption is permitted. The ASU will be applied prospectively to any transactions occurring within the period of adoption. The Operating Partnership expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash. The ASU addresses the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The updated standard will be effective for the Operating Partnership on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Operating Partnership does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. The ASU addresses specific cash flow items with the objective of reducing existing diversity in practice, including the treatment of distributions received from equity method investees. The updated standard will be effective for the Operating Partnership on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Operating Partnership elected to early adopt ASU 2016-15 in 2016. The adoption did not have an impact on the Operating Partnership's consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and to present the net amount of the financial instrument expected to be collected. The updated standard will be effective for the Operating Partnership on January 1, 2020; early adoption is permitted on January 1, 2019. The Operating Partnership is currently evaluating the effect that the updated standard will have on the consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. Full retrospective application is prohibited. The standard will be effective for the Operating Partnership on January 1, 2019, with early adoption permitted. While the Operating Partnership is currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures, we expect to recognize right-of-use assets and related lease liabilities on our consolidated balance sheets related to ground leases on any communities where we are the lessee. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, including industry-specific revenue guidance. The standard specifically excludes lease contracts. The ASU allows for the use of either the full or modified retrospective transition method and will be effective for the Operating Partnership on January 1, 2018, at which time the Operating Partnership expects to adopt the updated standard using the modified retrospective approach. However, as the majority of the Operating Partnership's revenue is from rental income related to leases, the Operating Partnership does not expect the ASU to have a material impact on the consolidated financial statements and related disclosures. Principles of Consolidation The Operating Partnership accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the amended consolidation guidance. The Operating Partnership first evaluates whether each entity is a variable interest entity ("VIE"). Under the VIE model, the Operating Partnership consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Operating Partnership consolidates an entity when it controls the entity through ownership of a majority voting interest. Discontinued Operations In accordance with GAAP, a discontinued operation represents (1) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (2) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (1) a separate major line of business, (2) a separate major geographic area of operations, (3) a major equity method investment, or (4) other major parts of an entity. We record sales of real estate that do not meet the definition of a discontinued operation in Gain/(loss) on sale of real estate owned, net of tax on the Consolidated Statements of Operations. Income/(Loss) Per Operating Partnership Unit Basic income/(loss) per OP Unit is computed by dividing net income/(loss) attributable to the general and limited partner unitholders by the weighted average number of general and limited partner units outstanding during the year. Diluted income/(loss) per OP Unit reflects the potential dilution that could occur if securities or other contracts to issue OP Units were exercised or converted into OP Units or resulted in the issuance of OP Units and then shared in the income/(loss) of the Operating Partnership. Revenue and Real Estate Sales Gain Recognition Rental income related to leases is recognized on an accrual basis when due from residents and tenants in accordance with GAAP. Rental payments are generally due on a monthly basis and recognized when earned. The Operating Partnership recognizes interest income, fees and incentives when earned, fixed and determinable. For sale transactions meeting the requirements for full accrual profit recognition, we remove the related assets and liabilities from our Consolidated Balance Sheets and record the gain or loss in the period the transaction closes. For sale transactions that do not meet the full accrual sale criteria due to our continuing involvement, we evaluate the nature of the continuing involvement and account for the transaction under an alternate method of accounting. Unless certain limited criteria are met, non-monetary transactions, including property exchanges, are accounted for at fair value. Sales to entities in which we or our General Partner retain or otherwise own an interest are accounted for as partial sales. If all other requirements for recognizing profit under the full accrual method have been satisfied and no other forms of continuing involvement are present, we recognize profit proportionate to the outside interest in the buyer and defer the gain on the interest we or our General Partner retain. The Operating Partnership recognizes any deferred gain when the property is sold to a third party. In transactions accounted by us as partial sales, we determine if the buyer of the majority equity interest in the venture was provided a preference as to cash flows in either an operating or a capital waterfall. If a cash flow preference has been provided, we recognize profit only to the extent that proceeds from the sale of the majority equity interest exceed costs related to the entire property. Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to unitholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three months ended March 31, 2017 and 2016, the Operating Partnership’s other comprehensive income/(loss) consisted of the gain/(loss) (effective portion) on derivative instruments that are designated as and qualify as cash flow hedges and (gain)/loss reclassified from other comprehensive income/(loss) into earnings. The (gain)/loss reclassified from other comprehensive income/(loss) is included in Interest expense on the Consolidated Statements of Operations. See Note 8, Derivatives and Hedging Activity, for further discussion. Income Taxes The taxable income or loss of the Operating Partnership is reported on the tax returns of the partners. Accordingly, no provision has been made in the accompanying financial statements for federal or state income taxes on income that is passed through to the partners. However, any state or local revenue, excise or franchise taxes that result from the operating activities of the Operating Partnership are recorded at the entity level. The Operating Partnership’s tax returns are subject to examination by federal and state taxing authorities. Net income for financial reporting purposes differs from the net income for income tax reporting purposes primarily due to temporary differences, principally real estate depreciation and the tax deferral of certain gains on property sales. The differences in depreciation result from differences in the book and tax basis of certain real estate assets and the differences in the methods of depreciation and lives of the real estate assets. The Operating Partnership evaluates the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Operating Partnership’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management of the Operating Partnership is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. The Operating Partnership has no examinations in progress and none are expected at this time. Management of the Operating Partnership has reviewed all open tax years (2013 through 2016) of tax jurisdictions and concluded there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. |
Real Estate Owned |
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REAL ESTATE OWNED | REAL ESTATE OWNED Real estate assets owned by the Company consist of income producing operating properties, properties under development, land held for future development, and sold or held for disposition properties. As of March 31, 2017, the Company owned and consolidated 128 communities in 10 states plus the District of Columbia totaling 39,698 apartment homes. The following table summarizes the carrying amounts for our real estate owned (at cost) as of March 31, 2017 and December 31, 2016 (dollars in thousands):
Acquisitions During the three months ended March 31, 2017, the Company exercised its fixed-price option to purchase its joint venture partner's ownership interest in a 244 home operating community in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $66.0 million. As a result, the Company consolidated the operating community. The Company had previously accounted for its 49% ownership interest as a preferred equity investment in an unconsolidated joint venture (see Note 5, Joint Ventures and Partnerships). As a result of the consolidation, the Company increased its real estate owned by approximately $97.0 million, recorded approximately $1.7 million of in-place lease intangibles and recorded a gain on consolidation of $12.2 million, which is included in Income/(loss) from unconsolidated entities on the Consolidated Statements of Operations. Dispositions During the three months ended March 31, 2017, the Company sold a parcel of land in Richmond, Virginia for gross proceeds of $3.5 million, resulting in net proceeds of $3.3 million and a gain of $2.1 million. Predevelopment, development, and redevelopment projects and related costs are capitalized and reported on the Consolidated Balance Sheets as Total real estate owned, net of accumulated depreciation. The Company capitalizes costs directly related to the predevelopment, development, and redevelopment of a capital project, which include, but are not limited to, interest, real estate taxes, insurance, and allocated development and redevelopment overhead related to support costs for personnel working on the capital projects. We use our professional judgment in determining whether such costs meet the criteria for capitalization or must be expensed as incurred. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress and such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. These costs, excluding the direct costs of development and redevelopment and capitalized interest, were $2.8 million and $2.0 million for the three months ended March 31, 2017 and 2016, respectively. Total interest capitalized was $4.7 million and $4.2 million for the three months ended March 31, 2017 and 2016, respectively. As each home in a capital project is completed and becomes available for lease-up, the Company ceases capitalization on the related portion and depreciation commences over the estimated useful life. |
Real Estate Owned (UNITED DOMINION REALTY, L.P.) |
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REAL ESTATE OWNED | REAL ESTATE OWNED Real estate assets owned by the Company consist of income producing operating properties, properties under development, land held for future development, and sold or held for disposition properties. As of March 31, 2017, the Company owned and consolidated 128 communities in 10 states plus the District of Columbia totaling 39,698 apartment homes. The following table summarizes the carrying amounts for our real estate owned (at cost) as of March 31, 2017 and December 31, 2016 (dollars in thousands):
Acquisitions During the three months ended March 31, 2017, the Company exercised its fixed-price option to purchase its joint venture partner's ownership interest in a 244 home operating community in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $66.0 million. As a result, the Company consolidated the operating community. The Company had previously accounted for its 49% ownership interest as a preferred equity investment in an unconsolidated joint venture (see Note 5, Joint Ventures and Partnerships). As a result of the consolidation, the Company increased its real estate owned by approximately $97.0 million, recorded approximately $1.7 million of in-place lease intangibles and recorded a gain on consolidation of $12.2 million, which is included in Income/(loss) from unconsolidated entities on the Consolidated Statements of Operations. Dispositions During the three months ended March 31, 2017, the Company sold a parcel of land in Richmond, Virginia for gross proceeds of $3.5 million, resulting in net proceeds of $3.3 million and a gain of $2.1 million. Predevelopment, development, and redevelopment projects and related costs are capitalized and reported on the Consolidated Balance Sheets as Total real estate owned, net of accumulated depreciation. The Company capitalizes costs directly related to the predevelopment, development, and redevelopment of a capital project, which include, but are not limited to, interest, real estate taxes, insurance, and allocated development and redevelopment overhead related to support costs for personnel working on the capital projects. We use our professional judgment in determining whether such costs meet the criteria for capitalization or must be expensed as incurred. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress and such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. These costs, excluding the direct costs of development and redevelopment and capitalized interest, were $2.8 million and $2.0 million for the three months ended March 31, 2017 and 2016, respectively. Total interest capitalized was $4.7 million and $4.2 million for the three months ended March 31, 2017 and 2016, respectively. As each home in a capital project is completed and becomes available for lease-up, the Company ceases capitalization on the related portion and depreciation commences over the estimated useful life. |
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United Dominion Reality L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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REAL ESTATE OWNED | REAL ESTATE OWNED Real estate assets owned by the Operating Partnership consist of income producing operating properties, properties under development, land held for future development, and sold or held for disposition properties. At March 31, 2017, the Operating Partnership owned and consolidated 54 communities in eight states plus the District of Columbia totaling 16,698 apartment homes. The following table summarizes the carrying amounts for our real estate owned (at cost) as of March 31, 2017 and December 31, 2016 (dollars in thousands):
The Operating Partnership did not have any acquisitions or sales of real estate during the three months ended March 31, 2017. Predevelopment, development, and redevelopment projects and related costs are capitalized and reported on the Consolidated Balance Sheets as Total real estate owned, net of accumulated depreciation. The Operating Partnership capitalizes costs directly related to the predevelopment, development, and redevelopment of a capital project, which include, but are not limited to, interest, real estate taxes, insurance, and allocated development and redevelopment overhead related to support costs for personnel working on the capital projects. We use our professional judgment in determining whether such costs meet the criteria for capitalization or must be expensed as incurred. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress and such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. These costs, excluding the direct costs of development and redevelopment and capitalized interest, were $0.3 million and $0.3 million for the three months ended March 31, 2017 and 2016, respectively. Total interest capitalized was less than $0.1 million and $0.1 million for the three months ended March 31, 2017 and 2016, respectively. As each home in a capital project is completed and becomes available for lease-up, the Operating Partnership ceases capitalization on the related portion and depreciation commences over the estimated useful life. |
Variable Interest Entities (Notes) |
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Equity Method Investments and Joint Ventures [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | VARIABLE INTEREST ENTITIES The Company has determined that the Operating Partnership and DownREIT Partnership are VIEs as the limited partners lack substantive kick-out rights and substantive participating rights. The Company has concluded that it is the primary beneficiary of, and therefore consolidates the Operating Partnership and DownREIT Partnership based on its role as the sole general partner of the Operating Partnership and DownREIT Partnership. The Company's role as community manager and its equity interests give us the power to direct the activities that most significantly impact the economic performance and the obligation to absorb potentially significant losses or the right to receive potentially significant benefits of the Operating Partnership and DownREIT Partnership. See the consolidated financial statements of the Operating Partnership presented within this Report and Note 4, Unconsolidated Entities, to the Operating Partnership's consolidated financial statements for the results of operations of the Operating Partnership and DownREIT Partnership, respectively. |
Joint Ventures |
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Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | JOINT VENTURES AND PARTNERSHIPS UDR has entered into joint ventures and partnerships with unrelated third parties to acquire real estate assets that are either consolidated and included in Real estate owned on the Consolidated Balance Sheets or are accounted for under the equity method of accounting, and are included in Investment in and advances to unconsolidated joint ventures, net, on the Consolidated Balance Sheets. The Company consolidates the entities that we control as well as any variable interest entity where we are the primary beneficiary. In addition, the Company consolidates any joint venture or partnership in which we are the general partner or managing member and the third party does not have the ability to substantively participate in the decision-making process nor the ability to remove us as general partner or managing member without cause. UDR’s joint ventures and partnerships are funded with a combination of debt and equity. Our losses are limited to our investment and except as noted below, the Company does not guarantee any debt, capital payout or other obligations associated with our joint ventures and partnerships. The Company recognizes earnings or losses from our investments in unconsolidated joint ventures and partnerships consisting of our proportionate share of the net earnings or losses of the joint ventures and partnerships. In addition, we may earn fees for providing management services to the 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 March 31, 2017 and December 31, 2016 (dollars in thousands):
At inception of the agreement, the Company had a fixed-price option to acquire the remaining interest in each community beginning one year after completion. If the options are exercised for all five communities, the Company’s total purchase price will be $597.4 million. In the event the Company does not exercise its options to purchase at least two communities, the unaffiliated joint venture partner will be entitled to earn a contingent disposition fee equal to a 6.5% return on its implied equity in the communities not acquired. The unaffiliated joint venture partner is providing certain guaranties and there are construction loans on all five communities. During the three months ended March 31, 2017, the Company exercised its fixed-price option to purchase the joint venture partner’s ownership interest in one of the five communities, a 244 home operating community in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $66.0 million. As a result, the Company consolidated the operating community and it is no longer accounted for as a preferred equity investment in an unconsolidated joint venture (see Note 4, Real Estate Owned). As a result of the consolidation, the Company recorded a gain on consolidation of $12.2 million, which is included in Income/(loss) from unconsolidated entities on the Consolidated Statements of Operations. As of March 31, 2017, construction was completed on three of the four remaining communities. Two of the four remaining communities had achieved stabilization. The other two remaining communities have not achieved stabilization and the Company continues to receive a 6.5% preferred return on its investment in those communities. In March 2017, the Company entered into an additional joint venture agreement with the unaffiliated joint venture partner and agreed to pay $15.5 million for a 49% ownership interest in a 155 home community that is currently under construction in Seattle, Washington (together with the May 2015 joint venture described above, the “West Coast Development Joint Ventures”). Consistent with the terms of the May 2015 joint venture agreement, UDR earns a 6.5% preferred return on its investment through the community’s date of stabilization, as defined above, while our joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization, income and expense will be shared based on each partner’s ownership percentage and the Company will no longer receive a 6.5% preferred return on its investment in the stabilized community. The Company will serve as property manager and will earn a management fee during the lease-up phase and subsequent operation of the community. The unaffiliated joint venture partner is the general partner and the developer of the community. The Company has concluded it does not control the joint venture and accounts for it under the equity method of accounting. The Company has a fixed-price option to acquire the remaining interest in the community beginning one year after completion for a total price of $61.3 million. The unaffiliated joint venture partner is providing certain guaranties and there is a construction loan on the community. The Company's recorded equity investment in the West Coast Development Joint Ventures at March 31, 2017 and December 31, 2016 of $145.3 million and $150.3 million, respectively, is inclusive of outside basis costs and our accrued but unpaid preferred return. As of March 31, 2017 and December 31, 2016, the Company had deferred fees and deferred profit of $9.7 million and $9.5 million, respectively, which will be recognized through earnings over the weighted average life of the related properties, upon the disposition of the properties to a third party, or upon completion of certain development obligations. The Company recognized management fees of $2.6 million and $2.8 million for the three months ended March 31, 2017 and 2016, respectively, for our management of the communities held by the joint ventures and partnerships. The management fees are included in Joint venture management and other fees on the Consolidated Statements of Operations. The Company may, in the future, make additional capital contributions to certain of our joint ventures and partnerships should additional capital contributions be necessary to fund acquisitions or operations. We evaluate our investments in unconsolidated joint ventures and partnerships when events or changes in circumstances indicate that there may be an other-than-temporary decline in value. We consider various factors to determine if a decrease in the value of the investment is other-than-temporary. The Company did not recognize any other-than-temporary decreases in the value of its investments in unconsolidated joint ventures or partnerships during the three months ended March 31, 2017 and 2016. Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of March 31, 2017 and December 31, 2016 (dollars in thousands):
Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three months ended March 31, 2017 and 2016 (dollars in thousands):
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Unconsolidated Entities (UNITED DOMINION REALTY, L.P.) Unconsolidated Entities (UNITED DOMINION REALTY, L.P.) |
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Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | JOINT VENTURES AND PARTNERSHIPS UDR has entered into joint ventures and partnerships with unrelated third parties to acquire real estate assets that are either consolidated and included in Real estate owned on the Consolidated Balance Sheets or are accounted for under the equity method of accounting, and are included in Investment in and advances to unconsolidated joint ventures, net, on the Consolidated Balance Sheets. The Company consolidates the entities that we control as well as any variable interest entity where we are the primary beneficiary. In addition, the Company consolidates any joint venture or partnership in which we are the general partner or managing member and the third party does not have the ability to substantively participate in the decision-making process nor the ability to remove us as general partner or managing member without cause. UDR’s joint ventures and partnerships are funded with a combination of debt and equity. Our losses are limited to our investment and except as noted below, the Company does not guarantee any debt, capital payout or other obligations associated with our joint ventures and partnerships. The Company recognizes earnings or losses from our investments in unconsolidated joint ventures and partnerships consisting of our proportionate share of the net earnings or losses of the joint ventures and partnerships. In addition, we may earn fees for providing management services to the 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 March 31, 2017 and December 31, 2016 (dollars in thousands):
At inception of the agreement, the Company had a fixed-price option to acquire the remaining interest in each community beginning one year after completion. If the options are exercised for all five communities, the Company’s total purchase price will be $597.4 million. In the event the Company does not exercise its options to purchase at least two communities, the unaffiliated joint venture partner will be entitled to earn a contingent disposition fee equal to a 6.5% return on its implied equity in the communities not acquired. The unaffiliated joint venture partner is providing certain guaranties and there are construction loans on all five communities. During the three months ended March 31, 2017, the Company exercised its fixed-price option to purchase the joint venture partner’s ownership interest in one of the five communities, a 244 home operating community in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $66.0 million. As a result, the Company consolidated the operating community and it is no longer accounted for as a preferred equity investment in an unconsolidated joint venture (see Note 4, Real Estate Owned). As a result of the consolidation, the Company recorded a gain on consolidation of $12.2 million, which is included in Income/(loss) from unconsolidated entities on the Consolidated Statements of Operations. As of March 31, 2017, construction was completed on three of the four remaining communities. Two of the four remaining communities had achieved stabilization. The other two remaining communities have not achieved stabilization and the Company continues to receive a 6.5% preferred return on its investment in those communities. In March 2017, the Company entered into an additional joint venture agreement with the unaffiliated joint venture partner and agreed to pay $15.5 million for a 49% ownership interest in a 155 home community that is currently under construction in Seattle, Washington (together with the May 2015 joint venture described above, the “West Coast Development Joint Ventures”). Consistent with the terms of the May 2015 joint venture agreement, UDR earns a 6.5% preferred return on its investment through the community’s date of stabilization, as defined above, while our joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization, income and expense will be shared based on each partner’s ownership percentage and the Company will no longer receive a 6.5% preferred return on its investment in the stabilized community. The Company will serve as property manager and will earn a management fee during the lease-up phase and subsequent operation of the community. The unaffiliated joint venture partner is the general partner and the developer of the community. The Company has concluded it does not control the joint venture and accounts for it under the equity method of accounting. The Company has a fixed-price option to acquire the remaining interest in the community beginning one year after completion for a total price of $61.3 million. The unaffiliated joint venture partner is providing certain guaranties and there is a construction loan on the community. The Company's recorded equity investment in the West Coast Development Joint Ventures at March 31, 2017 and December 31, 2016 of $145.3 million and $150.3 million, respectively, is inclusive of outside basis costs and our accrued but unpaid preferred return. As of March 31, 2017 and December 31, 2016, the Company had deferred fees and deferred profit of $9.7 million and $9.5 million, respectively, which will be recognized through earnings over the weighted average life of the related properties, upon the disposition of the properties to a third party, or upon completion of certain development obligations. The Company recognized management fees of $2.6 million and $2.8 million for the three months ended March 31, 2017 and 2016, respectively, for our management of the communities held by the joint ventures and partnerships. The management fees are included in Joint venture management and other fees on the Consolidated Statements of Operations. The Company may, in the future, make additional capital contributions to certain of our joint ventures and partnerships should additional capital contributions be necessary to fund acquisitions or operations. We evaluate our investments in unconsolidated joint ventures and partnerships when events or changes in circumstances indicate that there may be an other-than-temporary decline in value. We consider various factors to determine if a decrease in the value of the investment is other-than-temporary. The Company did not recognize any other-than-temporary decreases in the value of its investments in unconsolidated joint ventures or partnerships during the three months ended March 31, 2017 and 2016. Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of March 31, 2017 and December 31, 2016 (dollars in thousands):
Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three months ended March 31, 2017 and 2016 (dollars in thousands):
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United Dominion Reality L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | UNCONSOLIDATED ENTITIES The DownREIT Partnership is accounted for by the Operating Partnership under the equity method of accounting and is included in Investment in unconsolidated entities on the Consolidated Balance Sheets. The Operating Partnership recognizes earnings or losses from its investments in unconsolidated entities consisting of our proportionate share of the net earnings or losses of the partnership in accordance with the Partnership Agreement. The DownREIT Partnership is a VIE as the limited partners lack substantive kick-out rights and substantive participating rights. The Operating Partnership is not the primary beneficiary of the DownREIT Partnership as it lacks the power to direct the activities that most significantly impact its economic performance and will continue to account for its interest as an equity method investment. See Note 2, Significant Accounting Policies. As of March 31, 2017, the DownREIT Partnership owned 13 communities with 6,261 apartment homes. The Operating Partnership’s investment in the DownREIT Partnership was $103.3 million and $112.9 million as of March 31, 2017 and December 31, 2016, respectively. Combined summary balance sheets relating to all of the DownREIT Partnership (not just our proportionate share) are presented below as of March 31, 2017 and December 31, 2016 (dollars in thousands):
Combined summary financial information relating to all of the DownREIT Partnership (not just our proportionate share) is presented below for the three months ended March 31, 2017 and 2016 (dollars in thousands):
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Secured and Unsecured Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Text Block] | SECURED AND UNSECURED DEBT, NET The following is a summary of our secured and unsecured debt at March 31, 2017 and December 31, 2016 (dollars in thousands):
For purposes of classification of the above table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument. Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. As of March 31, 2017, secured debt encumbered $1.9 billion or 19.7% of UDR’s total real estate owned based upon gross book value ($7.9 billion or 80.3% of UDR’s real estate owned based on gross book value is unencumbered). (a) At March 31, 2017, fixed rate mortgage notes payable are generally due in monthly installments of principal and interest and mature at various dates from May 2019 through November 2026 and carry interest rates ranging from 3.15% to 5.86%. The Company will from time to time acquire properties subject to fixed rate debt instruments. In those situations, the Company records the debt at its estimated fair value and amortizes any difference between the fair value and par value to interest expense over the life of the underlying debt instrument. During the three months ended March 31, 2017 and 2016, the Company had $0.7 million and $0.8 million, respectively, of amortization of the fair market adjustment of debt assumed in the acquisition of properties, which was included in Interest expense on the Consolidated Statements of Operations. The unamortized fair market adjustment was a net premium of $10.4 million and $11.2 million at March 31, 2017 and December 31, 2016, respectively. (b) UDR had three secured credit facilities with Fannie Mae with an aggregate commitment of $538.4 million at March 31, 2017. The Fannie Mae credit facilities mature at various dates from May 2017 through July 2020 and bear interest at floating and fixed rates. At March 31, 2017, $355.8 million of the outstanding balance was fixed and had a weighted average interest rate of 5.06% and the remaining balance of $182.6 million had a weighted average variable interest rate of 2.05%. During the three months ended March 31, 2017, the Company prepaid $98.3 million of its secured credit facilities with borrowings under the Company's unsecured commercial paper program. Further information related to these credit facilities is as follows (dollars in thousands):
(c) The variable rate mortgage notes payable that secure tax-exempt housing bond issues mature in August 2019 and March 2032. Interest on these notes is payable in monthly installments. The variable rate mortgage notes have interest rates ranging from 1.39% to 1.44% as of March 31, 2017. (d) The Company has a $1.1 billion unsecured revolving credit facility (the “Revolving Credit Facility”) and a $350.0 million unsecured term loan facility (the “Term Loan Facility”). The credit agreement for these facilities (the "Credit Agreement") allows the total commitments under the Revolving Credit Facility and the total borrowings under the Term Loan Facility to be increased to an aggregate maximum amount of up to $2.0 billion, subject to certain conditions, including obtaining commitments from any one or more lenders. The Revolving Credit Facility has a scheduled maturity date of January 31, 2020, with two six-month extension options, subject to certain conditions. The Term Loan Facility has a scheduled maturity date of January 29, 2021. Based on the Company’s current credit rating, the Revolving Credit Facility has an interest rate equal to LIBOR plus a margin of 90 basis points and a facility fee of 15 basis points, and the Term Loan Facility has an interest rate equal to LIBOR plus a margin of 95 basis points. Depending on the Company’s credit rating, the margin under the Revolving Credit Facility ranges from 85 to 155 basis points, the facility fee ranges from 12.5 to 30 basis points, and the margin under the Term Loan Facility ranges from 90 to 175 basis points. The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Credit Agreement also includes customary events of default, in certain cases subject to customary periods to cure. The occurrence of an event of default, following the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest and all other amounts payable under the Credit Agreement to be immediately due and payable. The following is a summary of short-term bank borrowings under the Revolving Credit Facility at March 31, 2017 and December 31, 2016 (dollars in thousands):
(1) Excludes $2.9 million and $2.9 million of letters of credit at March 31, 2017 and December 31, 2016, respectively. (e) On January 23, 2017, the Company entered into an unsecured commercial paper program. Under the terms of the program, the Company may issue unsecured commercial paper up to a maximum aggregate amount outstanding of $500 million. The notes are sold under customary terms in the United States commercial paper market and rank pari passu with all of the Company’s other unsecured indebtedness. The notes are fully and unconditionally guaranteed by the Operating Partnership. The following is a summary of short-term bank borrowings under the unsecured commercial paper program at March 31, 2017 and December 31, 2016 (dollars in thousands):
(f) The Company has a working capital credit facility, which provides for a $75 million unsecured revolving credit facility (the “Working Capital Credit Facility”) with a scheduled maturity date of January 1, 2019. Based on the Company’s current credit rating, the Working Capital Credit Facility has an interest rate equal to LIBOR plus a margin of 90 basis points. Depending on the Company’s credit rating, the margin ranges from 85 to 155 basis points. The following is a summary of short-term bank borrowings under the Working Capital Credit Facility at March 31, 2017 and December 31, 2016 (dollars in thousands):
(g) The Company previously entered into forward starting interest rate swaps to hedge against interest rate risk on $200 million of this debt. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 4.55%. (h) The Operating Partnership is a guarantor of this debt. The aggregate maturities, including amortizing principal payments of unsecured and secured debt, of total debt for the next ten calendar years subsequent to March 31, 2017 are as follows (dollars in thousands):
(a) Includes the unamortized balance of fair market value adjustments, premiums/discounts and deferred financing costs. For the three months ended March 31, 2017 and 2016, the Company amortized $1.1 million and $1.3 million, respectively, of deferred financing costs into Interest expense. We were in compliance with the covenants of our debt instruments at March 31, 2017. |
Debt (UNITED DOMINION REALTY, L.P.) |
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Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | SECURED AND UNSECURED DEBT, NET The following is a summary of our secured and unsecured debt at March 31, 2017 and December 31, 2016 (dollars in thousands):
For purposes of classification of the above table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument. Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. As of March 31, 2017, secured debt encumbered $1.9 billion or 19.7% of UDR’s total real estate owned based upon gross book value ($7.9 billion or 80.3% of UDR’s real estate owned based on gross book value is unencumbered). (a) At March 31, 2017, fixed rate mortgage notes payable are generally due in monthly installments of principal and interest and mature at various dates from May 2019 through November 2026 and carry interest rates ranging from 3.15% to 5.86%. The Company will from time to time acquire properties subject to fixed rate debt instruments. In those situations, the Company records the debt at its estimated fair value and amortizes any difference between the fair value and par value to interest expense over the life of the underlying debt instrument. During the three months ended March 31, 2017 and 2016, the Company had $0.7 million and $0.8 million, respectively, of amortization of the fair market adjustment of debt assumed in the acquisition of properties, which was included in Interest expense on the Consolidated Statements of Operations. The unamortized fair market adjustment was a net premium of $10.4 million and $11.2 million at March 31, 2017 and December 31, 2016, respectively. (b) UDR had three secured credit facilities with Fannie Mae with an aggregate commitment of $538.4 million at March 31, 2017. The Fannie Mae credit facilities mature at various dates from May 2017 through July 2020 and bear interest at floating and fixed rates. At March 31, 2017, $355.8 million of the outstanding balance was fixed and had a weighted average interest rate of 5.06% and the remaining balance of $182.6 million had a weighted average variable interest rate of 2.05%. During the three months ended March 31, 2017, the Company prepaid $98.3 million of its secured credit facilities with borrowings under the Company's unsecured commercial paper program. Further information related to these credit facilities is as follows (dollars in thousands):
(c) The variable rate mortgage notes payable that secure tax-exempt housing bond issues mature in August 2019 and March 2032. Interest on these notes is payable in monthly installments. The variable rate mortgage notes have interest rates ranging from 1.39% to 1.44% as of March 31, 2017. (d) The Company has a $1.1 billion unsecured revolving credit facility (the “Revolving Credit Facility”) and a $350.0 million unsecured term loan facility (the “Term Loan Facility”). The credit agreement for these facilities (the "Credit Agreement") allows the total commitments under the Revolving Credit Facility and the total borrowings under the Term Loan Facility to be increased to an aggregate maximum amount of up to $2.0 billion, subject to certain conditions, including obtaining commitments from any one or more lenders. The Revolving Credit Facility has a scheduled maturity date of January 31, 2020, with two six-month extension options, subject to certain conditions. The Term Loan Facility has a scheduled maturity date of January 29, 2021. Based on the Company’s current credit rating, the Revolving Credit Facility has an interest rate equal to LIBOR plus a margin of 90 basis points and a facility fee of 15 basis points, and the Term Loan Facility has an interest rate equal to LIBOR plus a margin of 95 basis points. Depending on the Company’s credit rating, the margin under the Revolving Credit Facility ranges from 85 to 155 basis points, the facility fee ranges from 12.5 to 30 basis points, and the margin under the Term Loan Facility ranges from 90 to 175 basis points. The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Credit Agreement also includes customary events of default, in certain cases subject to customary periods to cure. The occurrence of an event of default, following the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest and all other amounts payable under the Credit Agreement to be immediately due and payable. The following is a summary of short-term bank borrowings under the Revolving Credit Facility at March 31, 2017 and December 31, 2016 (dollars in thousands):
(1) Excludes $2.9 million and $2.9 million of letters of credit at March 31, 2017 and December 31, 2016, respectively. (e) On January 23, 2017, the Company entered into an unsecured commercial paper program. Under the terms of the program, the Company may issue unsecured commercial paper up to a maximum aggregate amount outstanding of $500 million. The notes are sold under customary terms in the United States commercial paper market and rank pari passu with all of the Company’s other unsecured indebtedness. The notes are fully and unconditionally guaranteed by the Operating Partnership. The following is a summary of short-term bank borrowings under the unsecured commercial paper program at March 31, 2017 and December 31, 2016 (dollars in thousands):
(f) The Company has a working capital credit facility, which provides for a $75 million unsecured revolving credit facility (the “Working Capital Credit Facility”) with a scheduled maturity date of January 1, 2019. Based on the Company’s current credit rating, the Working Capital Credit Facility has an interest rate equal to LIBOR plus a margin of 90 basis points. Depending on the Company’s credit rating, the margin ranges from 85 to 155 basis points. The following is a summary of short-term bank borrowings under the Working Capital Credit Facility at March 31, 2017 and December 31, 2016 (dollars in thousands):
(g) The Company previously entered into forward starting interest rate swaps to hedge against interest rate risk on $200 million of this debt. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 4.55%. (h) The Operating Partnership is a guarantor of this debt. The aggregate maturities, including amortizing principal payments of unsecured and secured debt, of total debt for the next ten calendar years subsequent to March 31, 2017 are as follows (dollars in thousands):
(a) Includes the unamortized balance of fair market value adjustments, premiums/discounts and deferred financing costs. For the three months ended March 31, 2017 and 2016, the Company amortized $1.1 million and $1.3 million, respectively, of deferred financing costs into Interest expense. We were in compliance with the covenants of our debt instruments at March 31, 2017. |
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United Dominion Reality L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT, NET Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. For purposes of classification in the following table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Operating Partnership having effectively established the fixed interest rate for the underlying debt instrument. Secured debt consists of the following as of March 31, 2017 and December 31, 2016 (dollars in thousands):
As of March 31, 2017, an aggregate commitment of $310.2 million of the General Partner's secured credit facilities with Fannie Mae was owed by the Operating Partnership based on the ownership of the assets securing the debt. The entire commitment was outstanding at March 31, 2017. The portions of the Fannie Mae credit facilities owed by the Operating Partnership mature at various dates from December 2018 through July 2020 and bear interest at floating and fixed rates. At March 31, 2017, $228.9 million of the outstanding balance was fixed and had a weighted average interest rate of 5.07% and the remaining balance of $81.3 million on these facilities had a weighted average variable interest rate of 2.34%. The following information relates to the credit facilities owed by the Operating Partnership (dollars in thousands):
The Operating Partnership may from time to time acquire properties subject to fixed rate debt instruments. In those situations, management will record the secured debt at its estimated fair value and amortize any difference between the fair value and par to interest expense over the life of the underlying debt instrument. The Operating Partnership did not have any unamortized fair value adjustments associated with the fixed rate debt instruments on the Operating Partnership’s properties. Fixed Rate Debt At March 31, 2017, the General Partner had borrowings against its fixed rate facilities of $355.8 million, of which $228.9 million was owed by the Operating Partnership based on the ownership of the assets securing the debt. As of March 31, 2017, the fixed rate Fannie Mae credit facilities owed by the Operating Partnership had a weighted average fixed interest rate of 5.07%. Variable Rate Debt Tax-exempt secured note payable. The variable rate mortgage note payable that secures tax-exempt housing bond issues matures March 2032. Interest on this note is payable in monthly installments. The mortgage note payable has an interest rate of 1.39% as of March 31, 2017. Secured credit facilities. At March 31, 2017, the General Partner had borrowings against its variable rate facilities of $182.6 million, of which $81.3 million was owed by the Operating Partnership based on the ownership of the assets securing the debt. As of March 31, 2017, the variable rate borrowings under the Fannie Mae credit facilities owed by the Operating Partnership had a weighted average floating interest rate of 2.34%. The aggregate maturities of the Operating Partnership’s secured debt due during each of the next ten calendar years subsequent to March 31, 2017 are as follows (dollars in thousands):
(a) Includes the unamortized balance of fair market value adjustments, premiums/discounts, deferred hedge gains, and deferred financing costs. For the three months ended March 31, 2017 and 2016, the Operating Partnership amortized $0.1 million and $0.2 million, respectively, of deferred financing costs into Interest expense. Guarantor on Unsecured Debt The Operating Partnership is a guarantor on the General Partner’s unsecured revolving credit facility with an aggregate borrowing capacity of $1.1 billion and unsecured commercial paper program with an aggregate borrowing capacity of $500 million, $300 million of medium-term notes due June 2018, $300 million of medium-term notes due October 2020, a $350 million term loan facility due January 2021, $400 million of medium-term notes due January 2022, $300 million of medium-term notes due July 2024, $300 million of medium-term notes due October 2025 and $300 million of medium-term notes due September 2026. As of March 31, 2017 and December 31, 2016, the General Partner did not have an outstanding balance under the unsecured revolving credit facility |
Income/(Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS/(LOSS) PER SHARE | /(LOSS) PER SHARE The following table sets forth the computation of basic and diluted income/(loss) per share for the periods presented (dollars and shares in thousands, except per share data):
Basic income/(loss) per common share is computed based upon the weighted average number of common shares outstanding. Diluted income/(loss) per common share is computed based upon the weighted average number of common shares outstanding plus the common shares issuable from the assumed conversion of the OP Units and DownREIT Units, convertible preferred stock, stock options, unvested long-term incentive plan units ("LTIP Units") and unvested restricted stock. Only those instruments having a dilutive impact on our basic income/(loss) per share are included in diluted income/(loss) per share during the periods. For the three months ended March 31, 2017 and 2016, the effect of the conversion of the OP Units, DownREIT Units and convertible preferred stock was not dilutive and therefore not included in the above calculation. The following table sets forth the additional shares of common stock outstanding by equity instrument if converted to common stock for each of the three months ended March 31, 2017 and 2016 (shares in thousands):
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Noncontrolling Interests |
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NONCONTROLLING INTERESTS | NONCONTROLLING INTERESTS Redeemable Noncontrolling Interests in the Operating Partnership and DownREIT Partnership Interests in the Operating Partnership and the DownREIT Partnership held by limited partners are represented by OP Units and DownREIT Units, respectively. The income is allocated to holders of OP Units/DownREIT Units based upon net income attributable to common stockholders and the weighted average number of OP Units/DownREIT Units outstanding to total common shares plus OP Units/DownREIT Units outstanding during the period. Capital contributions, distributions, and profits and losses are allocated to noncontrolling interests in accordance with the terms of the partnership agreements of the Operating Partnership and the DownREIT Partnership. Limited partners of the Operating Partnership and the DownREIT Partnership have the right to require such partnership to redeem all or a portion of the OP Units/DownREIT Units held by the limited partner at a redemption price equal to and in the form of the Cash Amount (as defined in the partnership agreement of the Operating Partnership or the DownREIT Partnership, as applicable), provided that such OP Units/DownREIT Units have been outstanding for at least one year, subject to certain exceptions. UDR, as the general partner of the Operating Partnership and the DownREIT Partnership may, in its sole discretion, purchase the OP Units/DownREIT Units by paying to the limited partner either the Cash Amount or the REIT Share Amount (generally one share of common stock of the Company for each OP Unit/DownREIT Unit), as defined in the partnership agreement of the Operating Partnership or the DownREIT Partnership, as applicable. Accordingly, the Company records the OP Units/DownREIT Units outside of permanent equity and reports the OP Units/DownREIT Units at their redemption value using the Company’s stock price at each balance sheet date. The following table sets forth redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership for the following period (dollars in thousands):
Noncontrolling Interests Noncontrolling interests represent interests of unrelated partners and unvested LTIP Units in certain consolidated affiliates, and is presented as part of equity in the Consolidated Balance Sheets since these interests are not redeemable. During the three months ended March 31, 2017 and 2016, Net (income)/loss attributable to noncontrolling interests was $(0.1) million and $(0.3) million, respectively. The Company grants LTIP Units to certain employees and non-employee directors. The LTIP Units represent an ownership interest in the Operating Partnership and have vesting terms of between one and three years, specific to the individual grants. Noncontrolling interests related to long-term incentive plan units represent the unvested LTIP Units of these employees and non-employee directors in the Operating Partnership. The net income/(loss) allocated to the unvested LTIP Units is included in Net (income)/loss attributable to noncontrolling interests on the Consolidated Statements of Operations. |
Related Party Transactions (UNITED DOMINION REALTY, L.P.) |
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United Dominion Reality L.P. [Member] | |
Entity Information [Line Items] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Advances (To)/From the General Partner The Operating Partnership participates in the General Partner’s central cash management program, wherein all the Operating Partnership’s cash receipts are remitted to the General Partner and all cash disbursements are funded by the General Partner. In addition, other miscellaneous costs such as administrative expenses are incurred by the General Partner on behalf of the Operating Partnership. As a result of these various transactions between the Operating Partnership and the General Partner, the Operating Partnership had net Advances (to)/from the General Partner of $114.4 million and $19.7 million at March 31, 2017 and December 31, 2016, respectively, which are reflected as increases/(decreases) of capital on the Consolidated Balance Sheets. Allocation of General and Administrative Expenses The General Partner shares various general and administrative costs, employees and other overhead costs with the Operating Partnership including legal assistance, acquisitions analysis, marketing, human resources, IT, accounting, rent, supplies and advertising, and allocates these costs to the Operating Partnership first on the basis of direct usage when identifiable, with the remainder allocated based on the reasonably anticipated benefits to the parties. The general and administrative expenses allocated to the Operating Partnership by UDR were $4.5 million and $4.6 million during the three months ended March 31, 2017 and 2016, respectively, and are included in General and administrative on the Consolidated Statements of Operations. In the opinion of management, this method of allocation reflects the level of services received by the Operating Partnership from the General Partner. During the three months ended March 31, 2017 and 2016, the Operating Partnership reimbursed the General Partner $3.6 million and $3.6 million, respectively, for shared services related to corporate level property management costs incurred by the General Partner. These shared costs reimbursements and related party management fees are initially recorded within the line item General and administrative on the Consolidated Statements of Operations, and a portion related to management costs is reclassified to Property management on the Consolidated Statements of Operations. (See further discussion below.) Shared Services/Management Fee The Operating Partnership self-manages its own properties and is party to an Inter-Company Employee and Cost Sharing Agreement with the General Partner. This agreement provides for reimbursements to the General Partner for the Operating Partnership’s allocable share of costs incurred by the General Partner for (a) shared services of corporate level property management employees and related support functions and costs, and (b) general and administrative costs. As discussed above, the reimbursement for shared services is classified in Property management on the Consolidated Statements of Operations. Notes Payable to the General Partner As of both March 31, 2017 and December 31, 2016, the Operating Partnership had $273.3 million of unsecured notes payable to the General Partner at annual interest rates between 4.12% and 5.34%. Certain limited partners of the Operating Partnership have provided guarantees or reimbursement agreements related to these notes payable. The guarantees were provided by the limited partners in conjunction with their contribution of properties to the Operating Partnership. The notes mature on August 31, 2021, December 31, 2023 and April 1, 2026, and interest payments are made monthly. The Operating Partnership recognized interest expense on the notes payable of $3.1 million and $3.1 million during the three months ended March 31, 2017 and 2016, respectively. |
Fair Value of Derivatives and Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS Fair value is based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below:
The estimated fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis as of March 31, 2017 and December 31, 2016 are summarized as follows (dollars in thousands):
(a)See Note 2, Significant Accounting Policies. (b)See Note 10, Derivatives and Hedging Activity. (c)See Note 6, Secured Debt and Unsecured Debt, Net. (d)See Note 8, Noncontrolling Interests. There were no transfers into or out of any of the levels of the fair value hierarchy during the three months ended March 31, 2017. Financial Instruments Carried at Fair Value The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair values of interest rate options are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of March 31, 2017 and December 31, 2016, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. In conjunction with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership have a redemption feature and are marked to their redemption value. The redemption value is based on the fair value of the Company’s common stock at the redemption date, and therefore, is calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership are classified as Level 2. Financial Instruments Not Carried at Fair Value At March 31, 2017 and December 31, 2016, the fair values of cash and cash equivalents, restricted cash, accounts receivable, prepaids, real estate taxes payable, accrued interest payable, security deposits and prepaid rent, distributions payable and accounts payable approximated their carrying values because of the short term nature of these instruments. The estimated fair values of other financial instruments were determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company would realize on the disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts. We estimate the fair value of our notes receivable and debt instruments by discounting the remaining cash flows of the debt instrument at a discount rate equal to the replacement market credit spread plus the corresponding treasury yields. Factors considered in determining a replacement market credit spread include general market conditions, borrower specific credit spreads, time remaining to maturity, loan-to-value ratios and collateral quality, where applicable (Level 3). We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by the future operation and disposition of those assets are less than the net book value of those assets. Our cash flow estimates are based upon historical results adjusted to reflect our best estimate of future market and operating conditions and our estimated holding periods. The net book value of impaired assets is reduced to fair value. Our estimates of fair value represent our best estimate based upon Level 3 inputs such as industry trends and reference to market rates and transactions. We consider various factors to determine if a decrease in the value of our investment in and advances to unconsolidated joint ventures, net is other-than-temporary. These factors include, but are not limited to, age of the venture, our intent and ability to retain our investment in the entity, the financial condition and long-term prospects of the entity, and the relationships with the other joint venture partners and its lenders. Based on the significance of the unobservable inputs, we classify these fair value measurements within Level 3 of the valuation hierarchy. The Company did not incur any other-than-temporary decrease in the value of its investments in unconsolidated joint ventures during the three months ended March 31, 2017 and 2016. After determining an other-than-temporary decrease in the value of an equity method investment has occurred, we estimate the fair value of our investment by estimating the proceeds we would receive upon a hypothetical liquidation of the investment at the date of measurement. Inputs reflect management’s best estimate of what market participants would use in pricing the investment giving consideration to the terms of the joint venture agreement and the estimated discounted future cash flows to be generated from the underlying joint venture assets. The inputs and assumptions utilized to estimate the future cash flows of the underlying assets are based upon the Company’s evaluation of the economy, market trends, operating results, and other factors, including judgments regarding costs to complete any construction activities, lease up and occupancy rates, rental rates, inflation rates, capitalization rates utilized to estimate the projected cash flows at the disposition, and discount rates. |
Fair Value of Derivatives and Financial Instruments (UNITED DOMINION REALTY, L.P.) |
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Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS Fair value is based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below:
The estimated fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis as of March 31, 2017 and December 31, 2016 are summarized as follows (dollars in thousands):
(a)See Note 2, Significant Accounting Policies. (b)See Note 10, Derivatives and Hedging Activity. (c)See Note 6, Secured Debt and Unsecured Debt, Net. (d)See Note 8, Noncontrolling Interests. There were no transfers into or out of any of the levels of the fair value hierarchy during the three months ended March 31, 2017. Financial Instruments Carried at Fair Value The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair values of interest rate options are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of March 31, 2017 and December 31, 2016, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. In conjunction with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership have a redemption feature and are marked to their redemption value. The redemption value is based on the fair value of the Company’s common stock at the redemption date, and therefore, is calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership are classified as Level 2. Financial Instruments Not Carried at Fair Value At March 31, 2017 and December 31, 2016, the fair values of cash and cash equivalents, restricted cash, accounts receivable, prepaids, real estate taxes payable, accrued interest payable, security deposits and prepaid rent, distributions payable and accounts payable approximated their carrying values because of the short term nature of these instruments. The estimated fair values of other financial instruments were determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company would realize on the disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts. We estimate the fair value of our notes receivable and debt instruments by discounting the remaining cash flows of the debt instrument at a discount rate equal to the replacement market credit spread plus the corresponding treasury yields. Factors considered in determining a replacement market credit spread include general market conditions, borrower specific credit spreads, time remaining to maturity, loan-to-value ratios and collateral quality, where applicable (Level 3). We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by the future operation and disposition of those assets are less than the net book value of those assets. Our cash flow estimates are based upon historical results adjusted to reflect our best estimate of future market and operating conditions and our estimated holding periods. The net book value of impaired assets is reduced to fair value. Our estimates of fair value represent our best estimate based upon Level 3 inputs such as industry trends and reference to market rates and transactions. We consider various factors to determine if a decrease in the value of our investment in and advances to unconsolidated joint ventures, net is other-than-temporary. These factors include, but are not limited to, age of the venture, our intent and ability to retain our investment in the entity, the financial condition and long-term prospects of the entity, and the relationships with the other joint venture partners and its lenders. Based on the significance of the unobservable inputs, we classify these fair value measurements within Level 3 of the valuation hierarchy. The Company did not incur any other-than-temporary decrease in the value of its investments in unconsolidated joint ventures during the three months ended March 31, 2017 and 2016. After determining an other-than-temporary decrease in the value of an equity method investment has occurred, we estimate the fair value of our investment by estimating the proceeds we would receive upon a hypothetical liquidation of the investment at the date of measurement. Inputs reflect management’s best estimate of what market participants would use in pricing the investment giving consideration to the terms of the joint venture agreement and the estimated discounted future cash flows to be generated from the underlying joint venture assets. The inputs and assumptions utilized to estimate the future cash flows of the underlying assets are based upon the Company’s evaluation of the economy, market trends, operating results, and other factors, including judgments regarding costs to complete any construction activities, lease up and occupancy rates, rental rates, inflation rates, capitalization rates utilized to estimate the projected cash flows at the disposition, and discount rates. |
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United Dominion Reality L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS Fair value is based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below:
The estimated fair values of the Operating Partnership’s financial instruments either recorded or disclosed on a recurring basis as of March 31, 2017 and December 31, 2016 are summarized as follows (dollars in thousands):
(a)See Note 5, Debt, Net. (b)See Note 8, Derivatives and Hedging Activity. There were no transfers into or out of any of the levels of the fair value hierarchy during the three months ended March 31, 2017. Financial Instruments Carried at Fair Value The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair values of interest rate options are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The General Partner, on behalf of the Operating Partnership, incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Operating Partnership has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the General Partner, on behalf of the Operating Partnership, has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of March 31, 2017 and December 31, 2016, the Operating Partnership has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Operating Partnership has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. In conjunction with the FASB’s fair value measurement guidance, the Operating Partnership made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Financial Instruments Not Carried at Fair Value As of March 31, 2017, the fair values of cash and cash equivalents, restricted cash, accounts receivable, prepaids, real estate taxes payable, accrued interest payable, security deposits and prepaid rent, distributions payable and accounts payable approximated their carrying values because of the short term nature of these instruments. The estimated fair values of other financial instruments were determined by the Operating Partnership using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Operating Partnership would realize on the disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts. The General Partner estimates the fair value of our debt instruments by discounting the remaining cash flows of the debt instrument at a discount rate equal to the replacement market credit spread plus the corresponding treasury yields. Factors considered in determining a replacement market credit spread include general market conditions, borrower specific credit spreads, time remaining to maturity, loan-to-value ratios and collateral quality (Level 3). The Operating Partnership records impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by the future operation and disposition of those assets are less than the net book value of those assets. Cash flow estimates are based upon historical results adjusted to reflect management’s best estimate of future market and operating conditions and our estimated holding periods. The net book value of impaired assets is reduced to fair value. The General Partner’s estimates of fair value represent management’s estimates based upon Level 3 inputs such as industry trends and reference to market rates and transactions. |
Derivatives and Hedging Activity |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DERIVATIVES AND HEDGING ACTIVITY Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated other comprehensive income/(loss), net in the Consolidated Balance Sheets and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended March 31, 2017 and 2016, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three months ended March 31, 2017, the Company recognized a loss of less than $0.1 million reclassified from Accumulated OCI to Interest expense due to the de-designation of a cash flow hedge and recorded no other ineffectiveness to earnings. During the three months ended March 31, 2016, the Company recorded no ineffectiveness to earnings. Amounts reported in Accumulated other comprehensive income/(loss), net in the Consolidated Balance Sheets related to derivatives that will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. Through March 31, 2018, the Company estimates that an additional $0.5 million will be reclassified as an increase to interest expense. As of March 31, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands):
(a) Of the four interest rate swaps noted in the table above, two swaps with an aggregate notional value of $215.0 million mature in April 2017 and two swaps with an aggregate notional value of $100.0 million mature in January 2020. The Company has entered into two forward starting interest rate swaps with an aggregate notional value of $215.0 million and a maturity in January 2020, which are effective upon the expiration of the swaps maturing in April 2017. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in a loss of less than $0.1 million for the three months ended March 31, 2017 and 2016. As of March 31, 2017, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands):
Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 (dollars in thousands):
Tabular Disclosure of the Effect of Derivative Instruments on the Consolidated Statements of Operations The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 (dollars in thousands):
Credit-risk-related Contingent Features The Company has agreements with some of its derivative counterparties that contain a provision where (1) if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations; or (2) the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. Certain of the Company’s agreements with its derivative counterparties contain provisions where, if there is a change in the Company’s financial condition that materially changes the Company’s creditworthiness in an adverse manner, the Company may be required to fully collateralize its obligations under the derivative instrument. At March 31, 2017 and December 31, 2016, no cash collateral was posted or required to be posted by the Company or by a counterparty. The Company also has an agreement with a derivative counterparty that incorporates the loan and financial covenant provisions of the Company’s indebtedness with a lender affiliate of the derivative counterparty. Failure to comply with these covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the applicable agreement. The Company has certain agreements with some of its derivative counterparties that contain a provision where, in the event of default by the Company or the counterparty, the right of setoff may be exercised. Any amount payable to one party by the other party may be reduced by its setoff against any amounts payable by the other party. Events that give rise to default by either party may include, but are not limited to, the failure to pay or deliver payment under the derivative agreement, the failure to comply with or perform under the derivative agreement, bankruptcy, a merger without assumption of the derivative agreement, or in a merger, a surviving entity's creditworthiness is materially weaker than the original party to the derivative agreement. As of March 31, 2017, the fair value of derivatives was in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, of $4.9 million. As of March 31, 2017, the Company has not posted any collateral related to these agreements. Tabular Disclosure of Offsetting Derivatives The Company has elected not to offset derivative positions in the consolidated financial statements. The tables below present the effect on its financial position had the Company made the election to offset its derivative positions as of March 31, 2017 and December 31, 2016 (dollars in thousands):
(a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote.
(a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
Derivatives and Hedging Activity (UNITED DOMINION REALTY, L.P.) |
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Entity Information [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITY | DERIVATIVES AND HEDGING ACTIVITY Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated other comprehensive income/(loss), net in the Consolidated Balance Sheets and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended March 31, 2017 and 2016, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three months ended March 31, 2017, the Company recognized a loss of less than $0.1 million reclassified from Accumulated OCI to Interest expense due to the de-designation of a cash flow hedge and recorded no other ineffectiveness to earnings. During the three months ended March 31, 2016, the Company recorded no ineffectiveness to earnings. Amounts reported in Accumulated other comprehensive income/(loss), net in the Consolidated Balance Sheets related to derivatives that will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. Through March 31, 2018, the Company estimates that an additional $0.5 million will be reclassified as an increase to interest expense. As of March 31, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands):
(a) Of the four interest rate swaps noted in the table above, two swaps with an aggregate notional value of $215.0 million mature in April 2017 and two swaps with an aggregate notional value of $100.0 million mature in January 2020. The Company has entered into two forward starting interest rate swaps with an aggregate notional value of $215.0 million and a maturity in January 2020, which are effective upon the expiration of the swaps maturing in April 2017. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in a loss of less than $0.1 million for the three months ended March 31, 2017 and 2016. As of March 31, 2017, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands):
Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 (dollars in thousands):
Tabular Disclosure of the Effect of Derivative Instruments on the Consolidated Statements of Operations The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 (dollars in thousands):
Credit-risk-related Contingent Features The Company has agreements with some of its derivative counterparties that contain a provision where (1) if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations; or (2) the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. Certain of the Company’s agreements with its derivative counterparties contain provisions where, if there is a change in the Company’s financial condition that materially changes the Company’s creditworthiness in an adverse manner, the Company may be required to fully collateralize its obligations under the derivative instrument. At March 31, 2017 and December 31, 2016, no cash collateral was posted or required to be posted by the Company or by a counterparty. The Company also has an agreement with a derivative counterparty that incorporates the loan and financial covenant provisions of the Company’s indebtedness with a lender affiliate of the derivative counterparty. Failure to comply with these covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the applicable agreement. The Company has certain agreements with some of its derivative counterparties that contain a provision where, in the event of default by the Company or the counterparty, the right of setoff may be exercised. Any amount payable to one party by the other party may be reduced by its setoff against any amounts payable by the other party. Events that give rise to default by either party may include, but are not limited to, the failure to pay or deliver payment under the derivative agreement, the failure to comply with or perform under the derivative agreement, bankruptcy, a merger without assumption of the derivative agreement, or in a merger, a surviving entity's creditworthiness is materially weaker than the original party to the derivative agreement. As of March 31, 2017, the fair value of derivatives was in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, of $4.9 million. As of March 31, 2017, the Company has not posted any collateral related to these agreements. Tabular Disclosure of Offsetting Derivatives The Company has elected not to offset derivative positions in the consolidated financial statements. The tables below present the effect on its financial position had the Company made the election to offset its derivative positions as of March 31, 2017 and December 31, 2016 (dollars in thousands):
(a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote.
(a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
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DERIVATIVES AND HEDGING ACTIVITY | DERIVATIVES AND HEDGING ACTIVITY Risk Management Objective of Using Derivatives The Operating Partnership is exposed to certain risks arising from both its business operations and economic conditions. The General Partner principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The General Partner manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the General Partner enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The General Partner’s and the Operating Partnership’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the General Partner’s known or expected cash payments principally related to the General Partner’s borrowings. Cash Flow Hedges of Interest Rate Risk The General Partner’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the General Partner primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the General Partner making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up front premium. A portion of the General Partner’s interest rate derivatives are owed by the Operating Partnership based on the General Partner’s underlying debt instruments owed by the Operating Partnership. (See Note 5, Debt, Net.) The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated other comprehensive income/(loss), net in the Consolidated Balance Sheets and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended March 31, 2017 and 2016, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three months ended March 31, 2017, the Operating Partnership recognized a loss of less than $0.1 million reclassified from Accumulated other comprehensive income/(loss), net to Interest expense due to the de-designation of a cash flow hedge and recorded no other ineffectiveness to earnings. During the three months ended March 31, 2016, the Operating Partnership recorded no gain or loss from ineffectiveness. Amounts reported in Accumulated other comprehensive income/(loss), net related to derivatives will be reclassified to interest expense as interest payments are made on the General Partner’s variable-rate debt that is owed by the Operating Partnership. Through March 31, 2018, we estimate that less than $0.1 million will be reclassified as an increase to interest expense. As of March 31, 2017, the Operating Partnership had the following outstanding interest rate derivatives designated as cash flow hedges of interest rate risk (dollars in thousands):
Derivatives not designated as hedges are not speculative and are used to manage the Operating Partnership’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in an adjustment to earnings of less than $0.1 million for the three months ended March 31, 2017 and 2016. As of March 31, 2017, we had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands):
Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets The table below presents the fair value of the Operating Partnership’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 (dollars in thousands):
Tabular Disclosure of the Effect of Derivative Instruments on the Consolidated Statements of Operations The tables below present the effect of the derivative financial instruments on the Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 (dollars in thousands):
Credit-risk-related Contingent Features The General Partner has agreements with some of its derivative counterparties that contain a provision where (1) if the General Partner defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the General Partner could also be declared in default on its derivative obligations; or (2) the General Partner could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the General Partner’s default on the indebtedness. Certain of the General Partner’s agreements with its derivative counterparties contain provisions where if there is a change in the General Partner’s financial condition that materially changes the General Partner’s creditworthiness in an adverse manner, the General Partner may be required to fully collateralize its obligations under the derivative instrument. At March 31, 2017 and December 31, 2016, no cash collateral was posted or required to be posted by the General Partner or by a counterparty. The General Partner also has an agreement with a derivative counterparty that incorporates the loan and financial covenant provisions of the General Partner’s indebtedness with a lender affiliate of the derivative counterparty. Failure to comply with these covenant provisions would result in the General Partner being in default on any derivative instrument obligations covered by the agreement. The General Partner has certain agreements with some of its derivative counterparties that contain a provision where in the event of default by the General Partner or the counterparty, the right of setoff may be exercised. Any amount payable to one party by the other party may be reduced by its setoff against any amounts payable by the other party. Events that give rise to default by either party may include, but are not limited to, the failure to pay or deliver payment under the derivative agreement, the failure to comply with or perform under the derivative agreement, bankruptcy, a merger without assumption of the derivative agreement, or in a merger, a surviving entity’s creditworthiness is materially weaker than the original party to the derivative agreement. As of March 31, 2017, the fair value of derivatives in a net liability position that were owed by the Operating Partnership, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was zero. The General Partner has elected not to offset derivative positions in the consolidated financial statements. The table below presents the effect on the Operating Partnership’s financial position had the General Partner made the election to offset its derivative positions as of March 31, 2017 and December 31, 2016:
(a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote.
(a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
Stock Based Compensation |
3 Months Ended |
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Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION The Company recognized stock based compensation expense, inclusive of awards granted to our independent directors, net of capitalization, of $3.4 million and $3.9 million during the three months ended March 31, 2017 and 2016, respectively. |
Capital Structure (UNITED DOMINION REALTY, L.P.) |
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CAPITAL STRUCTURE | CAPITAL STRUCTURE General Partnership Units The General Partner has complete discretion to manage and control the operations and business of the Operating Partnership, which includes but is not limited to the acquisition and disposition of real property, construction of buildings and making capital improvements, and the borrowing of funds from outside lenders or UDR and its subsidiaries to finance such activities. The General Partner can generally authorize, issue, sell, redeem or purchase any OP Unit or securities of the Operating Partnership without the approval of the limited partners. The General Partner can also approve, with regard to the issuances of OP Units, the class or one or more series of classes, with designations, preferences, participating, optional or other special rights, powers and duties including rights, powers and duties senior to limited partnership interests without approval of any limited partners except holders of Class A Limited Partnership Units. There were 110,883 General Partnership units outstanding at March 31, 2017 and December 31, 2016, all of which were held by UDR. Limited Partnership Units As of March 31, 2017 and December 31, 2016, there were 183,240,041 and 183,167,815, respectively, of limited partnership units outstanding, of which 1,873,332 were Class A Limited Partnership Units. UDR owned 174,122,808, or 95.0%, and 174,119,201, or 95.1%, of OP Units outstanding at March 31, 2017 and December 31, 2016, respectively, of which 121,661 were Class A Limited Partnership Units. The remaining 9,117,233, or 5.0%, and 9,048,614, or 4.9%, of OP Units outstanding were held by non-affiliated partners at March 31, 2017 and December 31, 2016, respectively, of which 1,751,671 were Class A Limited Partnership Units. Subject to the terms of the Operating Partnership Agreement, the limited partners have the right to require the Operating Partnership to redeem all or a portion of the OP Units held by the limited partner at a redemption price equal to and in the form of the Cash Amount (as defined in the Operating Partnership Agreement), provided that such OP Units have been outstanding for at least one year. UDR, as general partner of the Operating Partnership, may, in its sole discretion, purchase the OP Units by paying to the limited partner either the Cash Amount or the REIT Share Amount (generally one share of common stock of UDR for each OP Unit), as defined in the Operating Partnership Agreement. The non-affiliated limited partners’ capital is adjusted to redemption value at the end of each reporting period with the corresponding offset against UDR’s limited partner capital account based on the redemption rights noted above. The aggregate value upon redemption of the then-outstanding OP Units held by limited partners was $330.6 million and $330.1 million as of March 31, 2017 and December 31, 2016, respectively, based on the value of UDR’s common stock at each period end. A limited partner has no right to receive any distributions from the Operating Partnership on or after the date of redemption of its OP Units. Class A Limited Partnership Units Class A Limited Partnership Units have a cumulative, annual, non-compounded preferred return, which is equal to 8% based on a value of $16.61 per Class A Limited Partnership Unit. Holders of the Class A Limited Partnership Units exclusively possess certain voting rights. The Operating Partnership may not do the following without approval of the holders of the Class A Limited Partnership Units: (i) increase the authorized or issued amount of Class A Limited Partnership Units, (ii) reclassify any other partnership interest into Class A Limited Partnership Units, (iii) create, authorize or issue any obligations or security convertible into or the right to purchase Class A Limited Partnership Units, (iv) enter into a merger or acquisition, or (v) amend or modify the Operating Partnership Agreement in a manner that adversely affects the relative rights, preferences or privileges of the Class A Limited Partnership Units. The following table shows OP Units outstanding and OP Unit activity as of and for the three months ended March 31, 2017:
LTIP Units UDR grants long-term incentive plan units ("LTIP Units") to certain employees and non-employee directors. The LTIP Units represent an ownership interest in the Operating Partnership and have voting and distribution rights consistent with OP Units. The LTIP Units are subject to the terms of UDR's long-term incentive plan. Two classes of LTIP Units are granted, Class 1 LTIP Units and Class 2 LTIP Units. Class 1 LTIP Units are granted to non-employee directors and vest after one year. Class 2 LTIP Units are granted to certain employees and vest over a period from one to three years subject to certain performance and market conditions being achieved. Vested LTIP Units may be converted into OP Units provided that such LTIP Units have been outstanding for at least two years from the date of grant. Allocation of Profits and Losses Profit of the Operating Partnership is allocated in the following order: (i) to the General Partner and the Limited Partners in proportion to and up to the amount of cash distributions made during the year, and (ii) to the General Partner and Limited Partners in accordance with their percentage interests. Losses and depreciation and amortization expenses, non-recourse liabilities are allocated to the General Partner and Limited Partners in accordance with their percentage interests. Losses allocated to the Limited Partners are capped to the extent that such an allocation would not cause a deficit in the Limited Partners’ capital account. Such losses are, therefore, allocated to the General Partner. If any Partner’s capital balance were to fall into a deficit, any income and gains are allocated to each Partner sufficient to eliminate its negative capital balance. |
Commitments and Contingencies |
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COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments Real Estate Under Development The following summarizes the Company’s real estate commitments at March 31, 2017 (dollars in thousands):
Contingencies Litigation and Legal Matters The Company is subject to various legal proceedings and claims arising in the ordinary course of business. The Company cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The Company believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on our financial condition, results of operations or cash flow. |
Commitments and Contingencies (UNITED DOMINION REALTY, L.P.) Commitments and Contingencies (UNITED DOMINION REALTY, L.P.) |
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COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments Real Estate Under Development The following summarizes the Company’s real estate commitments at March 31, 2017 (dollars in thousands):
Contingencies Litigation and Legal Matters The Company is subject to various legal proceedings and claims arising in the ordinary course of business. The Company cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The Company believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on our financial condition, results of operations or cash flow. |
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COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contingencies Litigation and Legal Matters The Operating Partnership is subject to various legal proceedings and claims arising in the ordinary course of business. The Operating Partnership cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The General Partner believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on the Operating Partnership’s financial condition, results of operations or cash flow. |
Reportable Segments |
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REPORTABLE SEGMENTS | REPORTABLE SEGMENTS GAAP guidance requires that segment disclosures present the measure(s) used by the chief operating decision maker to decide how to allocate resources and for purposes of assessing such segments’ performance. UDR’s chief operating decision maker is comprised of several members of its executive management team who use several generally accepted industry financial measures to assess the performance of the business for our reportable operating segments. UDR owns and operates multifamily apartment communities that generate rental and other property related income through the leasing of apartment homes to a diverse base of tenants. The primary financial measures for UDR’s apartment communities are rental income and net operating income (“NOI”). Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. NOI is defined as rental income less direct property rental expenses. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI is property management expense, which is calculated as 2.75% of property revenue to cover the regional supervision and accounting costs related to consolidated property operations, and land rent. UDR’s chief operating decision maker utilizes NOI as the key measure of segment profit or loss. UDR’s two reportable segments are Same-Store Communities and Non-Mature Communities/Other:
Management evaluates the performance of each of our apartment communities on a Same-Store Community and Non-Mature Community/Other basis, as well as individually and geographically. This is consistent with the aggregation criteria under GAAP as each of our apartment communities generally has similar economic characteristics, facilities, services, and tenants. Therefore, the Company’s reportable segments have been aggregated by geography in a manner identical to that which is provided to the chief operating decision maker. All revenues are from external customers and no single tenant or related group of tenants contributed 10% or more of UDR’s total revenues during the three months ended March 31, 2017 and 2016. The following table details rental income and NOI for UDR’s reportable segments for the three months ended March 31, 2017 and 2016, and reconciles NOI to Net Income/(Loss) Attributable to UDR, Inc. in the Consolidated Statements of Operations (dollars in thousands):
(a) Same-Store Community population consisted of 35,689 apartment homes. The following table details the assets of UDR’s reportable segments as of March 31, 2017 and December 31, 2016 (dollars in thousands):
Capital expenditures related to our Same-Store Communities totaled $15.3 million and $12.9 million for the three months ended March 31, 2017 and 2016, respectively. Capital expenditures related to our Non-Mature Communities/Other totaled $0.8 million and $2.7 million for the three months ended March 31, 2017 and 2016, respectively. Markets included in the above geographic segments are as follows:
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Reportable Segments (UNITED DOMINION REALTY, L.P.) |
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Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REPORTABLE SEGMENTS | REPORTABLE SEGMENTS GAAP guidance requires that segment disclosures present the measure(s) used by the chief operating decision maker to decide how to allocate resources and for purposes of assessing such segments’ performance. UDR’s chief operating decision maker is comprised of several members of its executive management team who use several generally accepted industry financial measures to assess the performance of the business for our reportable operating segments. UDR owns and operates multifamily apartment communities that generate rental and other property related income through the leasing of apartment homes to a diverse base of tenants. The primary financial measures for UDR’s apartment communities are rental income and net operating income (“NOI”). Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. NOI is defined as rental income less direct property rental expenses. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI is property management expense, which is calculated as 2.75% of property revenue to cover the regional supervision and accounting costs related to consolidated property operations, and land rent. UDR’s chief operating decision maker utilizes NOI as the key measure of segment profit or loss. UDR’s two reportable segments are Same-Store Communities and Non-Mature Communities/Other:
Management evaluates the performance of each of our apartment communities on a Same-Store Community and Non-Mature Community/Other basis, as well as individually and geographically. This is consistent with the aggregation criteria under GAAP as each of our apartment communities generally has similar economic characteristics, facilities, services, and tenants. Therefore, the Company’s reportable segments have been aggregated by geography in a manner identical to that which is provided to the chief operating decision maker. All revenues are from external customers and no single tenant or related group of tenants contributed 10% or more of UDR’s total revenues during the three months ended March 31, 2017 and 2016. The following table details rental income and NOI for UDR’s reportable segments for the three months ended March 31, 2017 and 2016, and reconciles NOI to Net Income/(Loss) Attributable to UDR, Inc. in the Consolidated Statements of Operations (dollars in thousands):
(a) Same-Store Community population consisted of 35,689 apartment homes. The following table details the assets of UDR’s reportable segments as of March 31, 2017 and December 31, 2016 (dollars in thousands):
Capital expenditures related to our Same-Store Communities totaled $15.3 million and $12.9 million for the three months ended March 31, 2017 and 2016, respectively. Capital expenditures related to our Non-Mature Communities/Other totaled $0.8 million and $2.7 million for the three months ended March 31, 2017 and 2016, respectively. Markets included in the above geographic segments are as follows:
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United Dominion Reality L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REPORTABLE SEGMENTS | REPORTABLE SEGMENTS GAAP guidance requires that segment disclosures present the measure(s) used by the chief operating decision maker to decide how to allocate resources and for purposes of assessing such segments’ performance. The Operating Partnership has the same chief operating decision maker as that of its parent, the General Partner. The chief operating decision maker consists of several members of UDR’s executive management team who use several generally accepted industry financial measures to assess the performance of the business for our reportable operating segments. The Operating Partnership owns and operates multifamily apartment communities throughout the United States that generate rental and other property related income through the leasing of apartment homes to a diverse base of tenants. The primary financial measures of the Operating Partnership’s apartment communities are rental income and net operating income ("NOI"), and are included in the chief operating decision maker’s assessment of the Operating Partnership’s performance on a consolidated basis. Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. NOI is defined as total revenues less direct property operating expenses. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI are property management costs, which are the Operating Partnership’s allocable share of costs incurred by the General Partner for shared services of corporate level property management employees and related support functions and costs. The chief operating decision maker of the General Partner utilizes NOI as the key measure of segment profit or loss. The Operating Partnership’s two reportable segments are Same-Store Communities and Non-Mature Communities/Other:
Management of the General Partner evaluates the performance of each of the Operating Partnership’s apartment communities on a Same-Store Community and Non-Mature Community/Other basis, as well as individually and geographically. This is consistent with the aggregation criteria under GAAP as each of our apartment communities generally has similar economic characteristics, facilities, services, and tenants. Therefore, the Operating Partnership’s reportable segments have been aggregated by geography in a manner identical to that which is provided to the chief operating decision maker. All revenues are from external customers and no single tenant or related group of tenants contributed 10% or more of the Operating Partnership’s total revenues during the three months ended March 31, 2017 and 2016. The following table details rental income and NOI for the Operating Partnership’s reportable segments for the three months ended March 31, 2017 and 2016, and reconciles NOI to Net income/(loss) attributable to OP unitholders in the Consolidated Statements of Operations (dollars in thousands):
(a)Same-Store Community population consisted of 15,058 apartment homes. The following table details the assets of the Operating Partnership’s reportable segments as of March 31, 2017 and December 31, 2016 (dollars in thousands):
Capital expenditures related to the Operating Partnership’s Same-Store Communities totaled $8.0 million and $5.3 million for the three months ended March 31, 2017 and 2016, respectively. Capital expenditures related to the Operating Partnership’s Non-Mature Communities/Other totaled $0.4 million and $0.3 million for the three months ended March 31, 2017 and 2016, respectively. Markets included in the above geographic segments are as follows:
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Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to stockholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three months ended March 31, 2017 and 2016, the Company’s other comprehensive income/(loss) consisted of the gain/(loss) (effective portion) on derivative instruments that are designated as and qualify as cash flow hedges, (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) into earnings, and the allocation of other comprehensive income/(loss) to noncontrolling interests. The (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) is included in Interest expense on the Consolidated Statements of Operations. See Note 10, Derivatives and Hedging Activity, for further discussion. |
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New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The ASU changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for the Company on January 1, 2018; early adoption is permitted. The ASU will be applied prospectively to any transactions occurring within the period of adoption. The Company expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash. The ASU addresses the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. The ASU addresses specific cash flow items with the objective of reducing existing diversity in practice, including the treatment of distributions received from equity method investees. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company elected to early adopt ASU 2016-15 in 2016 and elected to classify distributions received from equity method investees using the cumulative earnings approach. As a result, for the three months ended March 31, 2016, the following amounts classified under the adopted ASU as returns on investment in unconsolidated joint ventures were reclassified on the Consolidated Statements of Cash Flow (in thousands):
In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and to present the net amount of the financial instrument expected to be collected. The updated standard will be effective for the Company on January 1, 2020; early adoption is permitted on January 1, 2019. The Company is currently evaluating the effect that the updated standard will have on the consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. The ASU aims to simplify the accounting for share-based payments by amending the accounting for forfeitures, statutory tax withholding requirements, classification in the statements of cash flow and income taxes. The updated standard was effective for the Company on January 1, 2017, at which time the Company prospectively began accounting for forfeitures as incurred and began applying the updated rules for statutory withholdings. As a result of adopting the ASU, the Company recorded a one-time adjustment for existing estimated forfeitures of $0.6 million as of January 1, 2017 to Distributions in Excess of Net Income on January 1, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. Full retrospective application is prohibited. The standard will be effective for the Company on January 1, 2019, with early adoption permitted. While the Company is currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures, we expect to recognize right-of-use assets and related lease liabilities on our consolidated balance sheets related to ground leases on any communities where we are the lessee. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, including industry-specific revenue guidance. The standard specifically excludes lease contracts. The ASU allows for the use of either the full or modified retrospective transition method and will be effective for the Company on January 1, 2018, at which time the Company expects to adopt the updated standard using the modified retrospective approach. However, as the majority of the Company’s revenue is from rental income related to leases, the Company does not expect the ASU to have a material impact on the consolidated financial statements and related disclosures. Principles of Consolidation The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Company first evaluates whether each entity is a variable interest entity ("VIE"). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. Discontinued Operations In accordance with GAAP, a discontinued operation represents (1) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (2) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (1) a separate major line of business, (2) a separate major geographic area of operations, (3) a major equity method investment, or (4) other major parts of an entity. We record sales of real estate that do not meet the definition of a discontinued operation in Gain/(loss) on sale of real estate owned, net of tax on the Consolidated Statements of Operations. |
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Revenue and real estate sales gain recognition | Revenue and Real Estate Sales Gain Recognition Rental income related to leases is recognized on an accrual basis when due from residents and tenants in accordance with GAAP. Rental payments are generally due on a monthly basis and recognized when earned. The Company recognizes interest income, management and other fees and incentives when earned, and the amounts are fixed and determinable. For sale transactions meeting the requirements for full accrual profit recognition, we remove the related assets and liabilities from our Consolidated Balance Sheets and record the gain or loss in the period the transaction closes. For sale transactions that do not meet the full accrual sale criteria due to our continuing involvement, we evaluate the nature of the continuing involvement and account for the transaction under an alternate method of accounting. Unless certain limited criteria are met, non-monetary transactions, including property exchanges, are accounted for at fair value. Sales to entities in which we retain or otherwise own an interest are accounted for as partial sales. If all other requirements for recognizing profit under the full accrual method have been satisfied and no other forms of continuing involvement are present, we recognize profit proportionate to the outside interest of the buyer and defer the gain on the interest we retain. The Company recognizes any deferred gain when the property is sold to a third party. In transactions accounted for by us as partial sales, we determine if the buyer of the majority equity interest in the venture was provided a preference as to cash flows in either an operating or a capital waterfall. If a cash flow preference has been provided, we recognize profit only to the extent that proceeds from the sale of the majority equity interest exceed costs related to the entire propert |
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Income Taxes | Income Taxes Due to the structure of the Company as a REIT and the nature of the operations for the operating properties, no provision for federal income taxes has been provided for at UDR. Historically, the Company has generally incurred only state and local excise and franchise taxes. UDR has elected for certain consolidated subsidiaries to be treated as taxable REIT subsidiaries (“TRS”). Income taxes for our TRS are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. The Company’s deferred tax assets are generally the result of differing depreciable lives on capitalized assets and timing of expense recognition for certain accrued liabilities. As of March 31, 2017 and December 31, 2016, UDR’s net deferred tax asset was $0.4 million and $0.6 million, respectively. GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition. The Company recognizes its tax positions and evaluates them using a two-step process. First, UDR determines whether a tax position is more likely than not (greater than 50 percent probability) to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. UDR had no material unrecognized tax benefit, accrued interest or penalties at March 31, 2017. UDR and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The tax years 2013 through 2016 remain open to examination by tax jurisdictions to which we are subject. When applicable, UDR recognizes interest and/or penalties related to uncertain tax positions in Tax (provision)/benefit, net on the Consolidated Statements of Operations. |
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Policy Loans Receivable, Policy [Policy Text Block] | Notes Receivable The following table summarizes our notes receivable, net as of March 31, 2017 and December 31, 2016 (dollars in thousands):
(a) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $13.0 million. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the eighth anniversary of the date of the note (February 2020). (b) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $2.5 million. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (July 2017).
(d) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $15.0 million, of which, $3.0 million has been funded. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $25.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (April 2021). The Company recognized $0.5 million and $0.4 million of interest income from notes receivable during the three months ended March 31, 2017 and 2016, respectively, none of which was related party interest income. Interest income is included in Interest income and other income/(expense), net on the Consolidated Statements of Operations. |
Significant Accounting Policies (UNITED DOMINION REALTY, L.P.) (Policies) |
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Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The ASU changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for the Company on January 1, 2018; early adoption is permitted. The ASU will be applied prospectively to any transactions occurring within the period of adoption. The Company expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash. The ASU addresses the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. The ASU addresses specific cash flow items with the objective of reducing existing diversity in practice, including the treatment of distributions received from equity method investees. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company elected to early adopt ASU 2016-15 in 2016 and elected to classify distributions received from equity method investees using the cumulative earnings approach. As a result, for the three months ended March 31, 2016, the following amounts classified under the adopted ASU as returns on investment in unconsolidated joint ventures were reclassified on the Consolidated Statements of Cash Flow (in thousands):
In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and to present the net amount of the financial instrument expected to be collected. The updated standard will be effective for the Company on January 1, 2020; early adoption is permitted on January 1, 2019. The Company is currently evaluating the effect that the updated standard will have on the consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. The ASU aims to simplify the accounting for share-based payments by amending the accounting for forfeitures, statutory tax withholding requirements, classification in the statements of cash flow and income taxes. The updated standard was effective for the Company on January 1, 2017, at which time the Company prospectively began accounting for forfeitures as incurred and began applying the updated rules for statutory withholdings. As a result of adopting the ASU, the Company recorded a one-time adjustment for existing estimated forfeitures of $0.6 million as of January 1, 2017 to Distributions in Excess of Net Income on January 1, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. Full retrospective application is prohibited. The standard will be effective for the Company on January 1, 2019, with early adoption permitted. While the Company is currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures, we expect to recognize right-of-use assets and related lease liabilities on our consolidated balance sheets related to ground leases on any communities where we are the lessee. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, including industry-specific revenue guidance. The standard specifically excludes lease contracts. The ASU allows for the use of either the full or modified retrospective transition method and will be effective for the Company on January 1, 2018, at which time the Company expects to adopt the updated standard using the modified retrospective approach. However, as the majority of the Company’s revenue is from rental income related to leases, the Company does not expect the ASU to have a material impact on the consolidated financial statements and related disclosures. Principles of Consolidation The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Company first evaluates whether each entity is a variable interest entity ("VIE"). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. Discontinued Operations In accordance with GAAP, a discontinued operation represents (1) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (2) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (1) a separate major line of business, (2) a separate major geographic area of operations, (3) a major equity method investment, or (4) other major parts of an entity. We record sales of real estate that do not meet the definition of a discontinued operation in Gain/(loss) on sale of real estate owned, net of tax on the Consolidated Statements of Operations. |
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Revenue and real estate sales gain recognition | Revenue and Real Estate Sales Gain Recognition Rental income related to leases is recognized on an accrual basis when due from residents and tenants in accordance with GAAP. Rental payments are generally due on a monthly basis and recognized when earned. The Company recognizes interest income, management and other fees and incentives when earned, and the amounts are fixed and determinable. For sale transactions meeting the requirements for full accrual profit recognition, we remove the related assets and liabilities from our Consolidated Balance Sheets and record the gain or loss in the period the transaction closes. For sale transactions that do not meet the full accrual sale criteria due to our continuing involvement, we evaluate the nature of the continuing involvement and account for the transaction under an alternate method of accounting. Unless certain limited criteria are met, non-monetary transactions, including property exchanges, are accounted for at fair value. Sales to entities in which we retain or otherwise own an interest are accounted for as partial sales. If all other requirements for recognizing profit under the full accrual method have been satisfied and no other forms of continuing involvement are present, we recognize profit proportionate to the outside interest of the buyer and defer the gain on the interest we retain. The Company recognizes any deferred gain when the property is sold to a third party. In transactions accounted for by us as partial sales, we determine if the buyer of the majority equity interest in the venture was provided a preference as to cash flows in either an operating or a capital waterfall. If a cash flow preference has been provided, we recognize profit only to the extent that proceeds from the sale of the majority equity interest exceed costs related to the entire propert |
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Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to stockholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three months ended March 31, 2017 and 2016, the Company’s other comprehensive income/(loss) consisted of the gain/(loss) (effective portion) on derivative instruments that are designated as and qualify as cash flow hedges, (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) into earnings, and the allocation of other comprehensive income/(loss) to noncontrolling interests. The (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) is included in Interest expense on the Consolidated Statements of Operations. See Note 10, Derivatives and Hedging Activity, for further discussion. |
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Income taxes | Income Taxes Due to the structure of the Company as a REIT and the nature of the operations for the operating properties, no provision for federal income taxes has been provided for at UDR. Historically, the Company has generally incurred only state and local excise and franchise taxes. UDR has elected for certain consolidated subsidiaries to be treated as taxable REIT subsidiaries (“TRS”). Income taxes for our TRS are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. The Company’s deferred tax assets are generally the result of differing depreciable lives on capitalized assets and timing of expense recognition for certain accrued liabilities. As of March 31, 2017 and December 31, 2016, UDR’s net deferred tax asset was $0.4 million and $0.6 million, respectively. GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition. The Company recognizes its tax positions and evaluates them using a two-step process. First, UDR determines whether a tax position is more likely than not (greater than 50 percent probability) to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. UDR had no material unrecognized tax benefit, accrued interest or penalties at March 31, 2017. UDR and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The tax years 2013 through 2016 remain open to examination by tax jurisdictions to which we are subject. When applicable, UDR recognizes interest and/or penalties related to uncertain tax positions in Tax (provision)/benefit, net on the Consolidated Statements of Operations. |
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New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The ASU changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for the Operating Partnership on January 1, 2018; early adoption is permitted. The ASU will be applied prospectively to any transactions occurring within the period of adoption. The Operating Partnership expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash. The ASU addresses the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The updated standard will be effective for the Operating Partnership on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Operating Partnership does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. The ASU addresses specific cash flow items with the objective of reducing existing diversity in practice, including the treatment of distributions received from equity method investees. The updated standard will be effective for the Operating Partnership on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Operating Partnership elected to early adopt ASU 2016-15 in 2016. The adoption did not have an impact on the Operating Partnership's consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and to present the net amount of the financial instrument expected to be collected. The updated standard will be effective for the Operating Partnership on January 1, 2020; early adoption is permitted on January 1, 2019. The Operating Partnership is currently evaluating the effect that the updated standard will have on the consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. Full retrospective application is prohibited. The standard will be effective for the Operating Partnership on January 1, 2019, with early adoption permitted. While the Operating Partnership is currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures, we expect to recognize right-of-use assets and related lease liabilities on our consolidated balance sheets related to ground leases on any communities where we are the lessee. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, including industry-specific revenue guidance. The standard specifically excludes lease contracts. The ASU allows for the use of either the full or modified retrospective transition method and will be effective for the Operating Partnership on January 1, 2018, at which time the Operating Partnership expects to adopt the updated standard using the modified retrospective approach. However, as the majority of the Operating Partnership's revenue is from rental income related to leases, the Operating Partnership does not expect the ASU to have a material impact on the consolidated financial statements and related disclosures. Principles of Consolidation The Operating Partnership accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the amended consolidation guidance. The Operating Partnership first evaluates whether each entity is a variable interest entity ("VIE"). Under the VIE model, the Operating Partnership consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Operating Partnership consolidates an entity when it controls the entity through ownership of a majority voting interest. Discontinued Operations In accordance with GAAP, a discontinued operation represents (1) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (2) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (1) a separate major line of business, (2) a separate major geographic area of operations, (3) a major equity method investment, or (4) other major parts of an entity. We record sales of real estate that do not meet the definition of a discontinued operation in Gain/(loss) on sale of real estate owned, net of tax on the Consolidated Statements of Operations. |
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Earnings Per Share, Policy [Policy Text Block] | Income/(Loss) Per Operating Partnership Unit Basic income/(loss) per OP Unit is computed by dividing net income/(loss) attributable to the general and limited partner unitholders by the weighted average number of general and limited partner units outstanding during the year. Diluted income/(loss) per OP Unit reflects the potential dilution that could occur if securities or other contracts to issue OP Units were exercised or converted into OP Units or resulted in the issuance of OP Units and then shared in the income/(loss) of the Operating Partnership. |
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Revenue and real estate sales gain recognition | Revenue and Real Estate Sales Gain Recognition Rental income related to leases is recognized on an accrual basis when due from residents and tenants in accordance with GAAP. Rental payments are generally due on a monthly basis and recognized when earned. The Operating Partnership recognizes interest income, fees and incentives when earned, fixed and determinable. For sale transactions meeting the requirements for full accrual profit recognition, we remove the related assets and liabilities from our Consolidated Balance Sheets and record the gain or loss in the period the transaction closes. For sale transactions that do not meet the full accrual sale criteria due to our continuing involvement, we evaluate the nature of the continuing involvement and account for the transaction under an alternate method of accounting. Unless certain limited criteria are met, non-monetary transactions, including property exchanges, are accounted for at fair value. Sales to entities in which we or our General Partner retain or otherwise own an interest are accounted for as partial sales. If all other requirements for recognizing profit under the full accrual method have been satisfied and no other forms of continuing involvement are present, we recognize profit proportionate to the outside interest in the buyer and defer the gain on the interest we or our General Partner retain. The Operating Partnership recognizes any deferred gain when the property is sold to a third party. In transactions accounted by us as partial sales, we determine if the buyer of the majority equity interest in the venture was provided a preference as to cash flows in either an operating or a capital waterfall. If a cash flow preference has been provided, we recognize profit only to the extent that proceeds from the sale of the majority equity interest exceed costs related to the entire property. |
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Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to unitholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three months ended March 31, 2017 and 2016, the Operating Partnership’s other comprehensive income/(loss) consisted of the gain/(loss) (effective portion) on derivative instruments that are designated as and qualify as cash flow hedges and (gain)/loss reclassified from other comprehensive income/(loss) into earnings. The (gain)/loss reclassified from other comprehensive income/(loss) is included in Interest expense on the Consolidated Statements of Operations. See Note 8, Derivatives and Hedging Activity, for further discussion. |
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Income taxes | Income Taxes The taxable income or loss of the Operating Partnership is reported on the tax returns of the partners. Accordingly, no provision has been made in the accompanying financial statements for federal or state income taxes on income that is passed through to the partners. However, any state or local revenue, excise or franchise taxes that result from the operating activities of the Operating Partnership are recorded at the entity level. The Operating Partnership’s tax returns are subject to examination by federal and state taxing authorities. Net income for financial reporting purposes differs from the net income for income tax reporting purposes primarily due to temporary differences, principally real estate depreciation and the tax deferral of certain gains on property sales. The differences in depreciation result from differences in the book and tax basis of certain real estate assets and the differences in the methods of depreciation and lives of the real estate assets. The Operating Partnership evaluates the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Operating Partnership’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management of the Operating Partnership is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. The Operating Partnership has no examinations in progress and none are expected at this time. Management of the Operating Partnership has reviewed all open tax years (2013 through 2016) of tax jurisdictions and concluded there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. |
Significant Accounting Policies (Tables) |
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Notes receivable | The following table summarizes our notes receivable, net as of March 31, 2017 and December 31, 2016 (dollars in thousands):
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Real Estate Owned (Tables) |
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Summary of carrying amounts for real estate owned (at cost) | The following table summarizes the carrying amounts for our real estate owned (at cost) as of March 31, 2017 and December 31, 2016 (dollars in thousands):
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Real Estate Owned (UNITED DOMINION REALTY, L.P.) (Tables) |
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Summary of carrying amounts for real estate owned (at cost) | The following table summarizes the carrying amounts for our real estate owned (at cost) as of March 31, 2017 and December 31, 2016 (dollars in thousands):
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Summary of carrying amounts for real estate owned (at cost) | The following table summarizes the carrying amounts for our real estate owned (at cost) as of March 31, 2017 and December 31, 2016 (dollars in thousands):
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Joint Ventures (Tables) |
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Combined Summary of Balance Sheets Relating to Unconsolidated Joint Ventures [Table Text Block] | We evaluate our investments in unconsolidated joint ventures and partnerships when events or changes in circumstances indicate that there may be an other-than-temporary decline in value. We consider various factors to determine if a decrease in the value of the investment is other-than-temporary. The Company did not recognize any other-than-temporary decreases in the value of its investments in unconsolidated joint ventures or partnerships during the three months ended March 31, 2017 and 2016. Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of March 31, 2017 and December 31, 2016 (dollars in thousands):
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Schedule of Equity Method Investments [Table Text Block] | 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 March 31, 2017 and December 31, 2016 (dollars in thousands):
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Financial information relating to unconsolidated joint ventures operations | Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three months ended March 31, 2017 and 2016 (dollars in thousands):
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Combined summary of balance sheets relating to unconsolidated joint ventures | JOINT VENTURES AND PARTNERSHIPS UDR has entered into joint ventures and partnerships with unrelated third parties to acquire real estate assets that are either consolidated and included in Real estate owned on the Consolidated Balance Sheets or are accounted for under the equity method of accounting, and are included in Investment in and advances to unconsolidated joint ventures, net, on the Consolidated Balance Sheets. The Company consolidates the entities that we control as well as any variable interest entity where we are the primary beneficiary. In addition, the Company consolidates any joint venture or partnership in which we are the general partner or managing member and the third party does not have the ability to substantively participate in the decision-making process nor the ability to remove us as general partner or managing member without cause. UDR’s joint ventures and partnerships are funded with a combination of debt and equity. Our losses are limited to our investment and except as noted below, the Company does not guarantee any debt, capital payout or other obligations associated with our joint ventures and partnerships. The Company recognizes earnings or losses from our investments in unconsolidated joint ventures and partnerships consisting of our proportionate share of the net earnings or losses of the joint ventures and partnerships. In addition, we may earn fees for providing management services to the 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 March 31, 2017 and December 31, 2016 (dollars in thousands):
At inception of the agreement, the Company had a fixed-price option to acquire the remaining interest in each community beginning one year after completion. If the options are exercised for all five communities, the Company’s total purchase price will be $597.4 million. In the event the Company does not exercise its options to purchase at least two communities, the unaffiliated joint venture partner will be entitled to earn a contingent disposition fee equal to a 6.5% return on its implied equity in the communities not acquired. The unaffiliated joint venture partner is providing certain guaranties and there are construction loans on all five communities. During the three months ended March 31, 2017, the Company exercised its fixed-price option to purchase the joint venture partner’s ownership interest in one of the five communities, a 244 home operating community in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $66.0 million. As a result, the Company consolidated the operating community and it is no longer accounted for as a preferred equity investment in an unconsolidated joint venture (see Note 4, Real Estate Owned). As a result of the consolidation, the Company recorded a gain on consolidation of $12.2 million, which is included in Income/(loss) from unconsolidated entities on the Consolidated Statements of Operations. As of March 31, 2017, construction was completed on three of the four remaining communities. Two of the four remaining communities had achieved stabilization. The other two remaining communities have not achieved stabilization and the Company continues to receive a 6.5% preferred return on its investment in those communities. In March 2017, the Company entered into an additional joint venture agreement with the unaffiliated joint venture partner and agreed to pay $15.5 million for a 49% ownership interest in a 155 home community that is currently under construction in Seattle, Washington (together with the May 2015 joint venture described above, the “West Coast Development Joint Ventures”). Consistent with the terms of the May 2015 joint venture agreement, UDR earns a 6.5% preferred return on its investment through the community’s date of stabilization, as defined above, while our joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization, income and expense will be shared based on each partner’s ownership percentage and the Company will no longer receive a 6.5% preferred return on its investment in the stabilized community. The Company will serve as property manager and will earn a management fee during the lease-up phase and subsequent operation of the community. The unaffiliated joint venture partner is the general partner and the developer of the community. The Company has concluded it does not control the joint venture and accounts for it under the equity method of accounting. The Company has a fixed-price option to acquire the remaining interest in the community beginning one year after completion for a total price of $61.3 million. The unaffiliated joint venture partner is providing certain guaranties and there is a construction loan on the community. The Company's recorded equity investment in the West Coast Development Joint Ventures at March 31, 2017 and December 31, 2016 of $145.3 million and $150.3 million, respectively, is inclusive of outside basis costs and our accrued but unpaid preferred return. As of March 31, 2017 and December 31, 2016, the Company had deferred fees and deferred profit of $9.7 million and $9.5 million, respectively, which will be recognized through earnings over the weighted average life of the related properties, upon the disposition of the properties to a third party, or upon completion of certain development obligations. The Company recognized management fees of $2.6 million and $2.8 million for the three months ended March 31, 2017 and 2016, respectively, for our management of the communities held by the joint ventures and partnerships. The management fees are included in Joint venture management and other fees on the Consolidated Statements of Operations. The Company may, in the future, make additional capital contributions to certain of our joint ventures and partnerships should additional capital contributions be necessary to fund acquisitions or operations. We evaluate our investments in unconsolidated joint ventures and partnerships when events or changes in circumstances indicate that there may be an other-than-temporary decline in value. We consider various factors to determine if a decrease in the value of the investment is other-than-temporary. The Company did not recognize any other-than-temporary decreases in the value of its investments in unconsolidated joint ventures or partnerships during the three months ended March 31, 2017 and 2016. Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of March 31, 2017 and December 31, 2016 (dollars in thousands):
Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three months ended March 31, 2017 and 2016 (dollars in thousands):
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Unconsolidated Entities (UNITED DOMINION REALTY, L.P.) Unconsolidated Entities (UNITED DOMINION REALTY, L.P.) (Tables) |
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Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Income Statement Relating to Unconsolidated Joint Ventures [Table Text Block] | Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three months ended March 31, 2017 and 2016 (dollars in thousands):
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United Dominion Reality L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Income Statement Relating to Unconsolidated Joint Ventures [Table Text Block] | Combined summary balance sheets relating to all of the DownREIT Partnership (not just our proportionate share) are presented below as of March 31, 2017 and December 31, 2016 (dollars in thousands):
Combined summary financial information relating to all of the DownREIT Partnership (not just our proportionate share) is presented below for the three months ended March 31, 2017 and 2016 (dollars in thousands):
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Secured and Unsecured Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short-term Debt [Table Text Block] | The following is a summary of short-term bank borrowings under the unsecured commercial paper program at March 31, 2017 and December 31, 2016 (dollars in thousands):
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Secured debt instruments | The following is a summary of our secured and unsecured debt at March 31, 2017 and December 31, 2016 (dollars in thousands):
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Secured credit facilities | Further information related to these credit facilities is as follows (dollars in thousands):
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Schedule of Maturities of Long-term Debt [Table Text Block] | The aggregate maturities, including amortizing principal payments of unsecured and secured debt, of total debt for the next ten calendar years subsequent to March 31, 2017 are as follows (dollars in thousands):
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Debt (UNITED DOMINION REALTY, L.P.) (Tables) |
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Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured debt instruments | The following is a summary of our secured and unsecured debt at March 31, 2017 and December 31, 2016 (dollars in thousands):
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Secured credit facilities | Further information related to these credit facilities is as follows (dollars in thousands):
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Aggregate maturities of secured debt | The aggregate maturities, including amortizing principal payments of unsecured and secured debt, of total debt for the next ten calendar years subsequent to March 31, 2017 are as follows (dollars in thousands):
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United Dominion Reality L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured debt instruments | Secured debt consists of the following as of March 31, 2017 and December 31, 2016 (dollars in thousands):
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Secured credit facilities | The following information relates to the credit facilities owed by the Operating Partnership (dollars in thousands):
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Aggregate maturities of secured debt | The aggregate maturities of the Operating Partnership’s secured debt due during each of the next ten calendar years subsequent to March 31, 2017 are as follows (dollars in thousands):
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Income/(Loss) Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table sets forth the additional shares of common stock outstanding by equity instrument if converted to common stock for each of the three months ended March 31, 2017 and 2016 (shares in thousands):
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(Loss)/earnings per share | The following table sets forth the computation of basic and diluted income/(loss) per share for the periods presented (dollars and shares in thousands, except per share data):
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Noncontrolling Interests (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests in the Operating Partnership | The following table sets forth redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership for the following period (dollars in thousands):
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Fair Value of Derivatives and Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated fair values | The estimated fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis as of March 31, 2017 and December 31, 2016 are summarized as follows (dollars in thousands):
(a)See Note 2, Significant Accounting Policies. (b)See Note 10, Derivatives and Hedging Activity. (c)See Note 6, Secured Debt and Unsecured Debt, Net. (d)See Note 8, Noncontrolling Interests. |
Fair Value of Derivatives and Financial Instruments (UNITED DOMINION REALTY, L.P.) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated fair values | The estimated fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis as of March 31, 2017 and December 31, 2016 are summarized as follows (dollars in thousands):
(a)See Note 2, Significant Accounting Policies. (b)See Note 10, Derivatives and Hedging Activity. (c)See Note 6, Secured Debt and Unsecured Debt, Net. (d)See Note 8, Noncontrolling Interests. |
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United Dominion Reality L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated fair values | The estimated fair values of the Operating Partnership’s financial instruments either recorded or disclosed on a recurring basis as of March 31, 2017 and December 31, 2016 are summarized as follows (dollars in thousands):
(a)See Note 5, Debt, Net. |
Derivatives and Hedging Activity (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding interest rate derivatives | As of March 31, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands):
(a) Of the four interest rate swaps noted in the table above, two swaps with an aggregate notional value of $215.0 million mature in April 2017 and two swaps with an aggregate notional value of $100.0 million mature in January 2020. The Company has entered into two forward starting interest rate swaps with an aggregate notional value of $215.0 million and a maturity in January 2020, which are effective upon the expiration of the swaps maturing in April 2017. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in a loss of less than $0.1 million for the three months ended March 31, 2017 and 2016. As of March 31, 2017, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands):
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Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 (dollars in thousands):
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Effect of Company's derivative financial instruments on Consolidated Statements of Operation | The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 (dollars in thousands):
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Effect of Company's derivatives not designated as hedging instruments on the Consolidated Statements of Operations |
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Offsetting Assets [Table Text Block] |
(a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
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Offsetting Liabilities [Table Text Block] |
(a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
Derivatives and Hedging Activity (UNITED DOMINION REALTY, L.P.) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding interest rate derivatives | As of March 31, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands):
(a) Of the four interest rate swaps noted in the table above, two swaps with an aggregate notional value of $215.0 million mature in April 2017 and two swaps with an aggregate notional value of $100.0 million mature in January 2020. The Company has entered into two forward starting interest rate swaps with an aggregate notional value of $215.0 million and a maturity in January 2020, which are effective upon the expiration of the swaps maturing in April 2017. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in a loss of less than $0.1 million for the three months ended March 31, 2017 and 2016. As of March 31, 2017, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands):
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Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 (dollars in thousands):
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Effect of Company's derivative financial instruments on Consolidated Statements of Operation | The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 (dollars in thousands):
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Effect of Company's derivatives not designated as hedging instruments on the Consolidated Statements of Operations |
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Offsetting Assets [Table Text Block] |
(a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
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Offsetting Liabilities [Table Text Block] |
(a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
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United Dominion Reality L.P. [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding interest rate derivatives | As of March 31, 2017, the Operating Partnership had the following outstanding interest rate derivatives designated as cash flow hedges of interest rate risk (dollars in thousands):
Derivatives not designated as hedges are not speculative and are used to manage the Operating Partnership’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in an adjustment to earnings of less than $0.1 million for the three months ended March 31, 2017 and 2016. As of March 31, 2017, we had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands):
As of March 31, 2017, the Operating Partnership had the following outstanding interest rate derivatives designated as cash flow hedges of interest rate risk (dollars in thousands):
Derivatives not designated as hedges are not speculative and are used to manage the Operating Partnership’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in an adjustment to earnings of less than $0.1 million for the three months ended March 31, 2017 and 2016. As of March 31, 2017, we had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands):
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Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheet | The table below presents the fair value of the Operating Partnership’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 (dollars in thousands):
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Effect of Company's derivative financial instruments on Consolidated Statements of Operation | The tables below present the effect of the derivative financial instruments on the Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 (dollars in thousands):
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Effect of Company's derivatives not designated as hedging instruments on the Consolidated Statements of Operations |
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Offsetting Assets [Table Text Block] | The General Partner has elected not to offset derivative positions in the consolidated financial statements. The table below presents the effect on the Operating Partnership’s financial position had the General Partner made the election to offset its derivative positions as of March 31, 2017 and December 31, 2016:
(a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
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Offsetting Liabilities [Table Text Block] |
(a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
Capital Structure (UNITED DOMINION REALTY, L.P.) Capital Structure (UNITED DOMINION REALTY, L.P.) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United Dominion Reality L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Limited Partners' Capital Account [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Limited Partners' Capital Account by Class [Table Text Block] | The following table shows OP Units outstanding and OP Unit activity as of and for the three months ended March 31, 2017:
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Commitments and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate commitments | The following summarizes the Company’s real estate commitments at March 31, 2017 (dollars in thousands):
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Reportable Segment (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | The following table details rental income and NOI for UDR’s reportable segments for the three months ended March 31, 2017 and 2016, and reconciles NOI to Net Income/(Loss) Attributable to UDR, Inc. in the Consolidated Statements of Operations (dollars in thousands):
(a) Same-Store Community population consisted of 35,689 apartment homes. |
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Details of assets of UDR's reportable segments | The following table details the assets of UDR’s reportable segments as of March 31, 2017 and December 31, 2016 (dollars in thousands):
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Reportable Segments (UNITED DOMINION REALTY, L.P.) (Tables) |
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United Dominion Reality L.P. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable segments information | The following table details rental income and NOI for the Operating Partnership’s reportable segments for the three months ended March 31, 2017 and 2016, and reconciles NOI to Net income/(loss) attributable to OP unitholders in the Consolidated Statements of Operations (dollars in thousands):
(a)Same-Store Community population consisted of 15,058 apartment homes. The following table details the assets of the Operating Partnership’s reportable segments as of March 31, 2017 and December 31, 2016 (dollars in thousands):
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Consolidation and Basis of Presentation (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Other Interest and Dividend Income | $ 0.5 | $ 0.4 | |
Limited partnership units owned | 183,350,924 | 183,278,698 | |
Deferred Tax Assets, Net | $ 0.4 | $ 0.6 | |
UDR Lighthouse DownREIT L.P. [Member] | |||
Operating Partnership outstanding units | 32,367,380 | ||
United Dominion Reality L.P. [Member] | UDR Lighthouse DownREIT L.P. [Member] | |||
Operating Partnership outstanding units | 13,470,651 | ||
Percentage of units outstanding in Heritage OP | 41.60% | ||
Limited Partner [Member] | UDR Lighthouse DownREIT L.P. [Member] | |||
Operating Partnership outstanding units | 15,835,284 | ||
Percentage of units outstanding in Heritage OP | 48.92359% | ||
General Partner [Member] | UDR Lighthouse DownREIT L.P. [Member] | |||
Operating Partnership outstanding units | 16,532,096 | ||
General Partners Capital Account Units Owned Percentage | 51.07641% | ||
Non-affiliated Partners [Member] | |||
Limited partnership units owned | 7,365,562 | 7,296,943 |
Secured and Unsecured Debt (Details 3) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Summary of unsecured debt | ||
Unsecured Debt, Total | $ 2,505,785 | $ 2,270,620 |
Unamortized discount | 10,400 | 11,200 |
4.63% Medium-Term Notes due January 2022 [Member] | ||
Summary of unsecured debt | ||
Senior Unsecured Notes | 398,285 | 398,195 |
Unamortized discount | 1,715 | 1,805 |
8.50% Debentures due September 2024 [Member] | ||
Summary of unsecured debt | ||
Senior Unsecured Notes | 15,644 | 15,644 |
4.25% Medium-Term Notes due June 2018 [Member] | ||
Summary of unsecured debt | ||
Senior Unsecured Notes | 299,499 | 299,392 |
Unamortized discount | 501 | 608 |
Other [Member] | ||
Summary of unsecured debt | ||
Senior Unsecured Notes | $ 21 | $ 21 |
Secured and Unsecured Debt Secured and Unsecured Debt (Details 5) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Short-term Debt [Line Items] | |||
Commercial Paper, Maximum Borrowing Amount | $ 500,000,000 | $ 0 | |
Commercial Paper, at Carrying Value | $ 220,000,000 | $ 0 | |
Weighted average interest rate | 3.67% | ||
Commercial Paper [Member] | |||
Short-term Debt [Line Items] | |||
Short-term Debt, Average Outstanding Amount | $ 80,228,000 | $ 0 | |
Short-term Debt, Maximum Amount Outstanding During Period | $ 220,000,000 | $ 0 | |
Short-term Debt, Weighted Average Interest Rate | 1.153% | 0.00% | |
Weighted average interest rate | 1.24% | 0.00% |
Secured and Unsecured Debt (Details Textual 1) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Sep. 26, 2013 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Debt Instrument [Line Items] | ||||
Amortization of Financing Costs | $ 1,100 | $ 1,300 | ||
Unsecured Debt (Textual) [Abstract] | ||||
Line of Credit Facility, Amount Outstanding | 2,900 | $ 2,900 | ||
Unamortized discount | $ 10,400 | 11,200 | ||
Debt Instrument, Interest Rate During Period | 3.67% | |||
ThreePointSevenTermNotesDueOctober2020 [Member] | ||||
Unsecured Debt (Textual) [Abstract] | ||||
Debt Instrument, Maturity Date | Oct. 31, 2020 | |||
Senior Notes | $ 299,972 | 299,970 | ||
4.63% Medium-Term Notes due January 2022 [Member] | ||||
Unsecured Debt (Textual) [Abstract] | ||||
Unamortized discount | 1,715 | 1,805 | ||
Senior Notes | $ 398,285 | 398,195 | ||
Debt Instrument, Interest Rate During Period | 4.63% | |||
UDR Bank Credit Facility [Member] | ||||
Unsecured Debt (Textual) [Abstract] | ||||
Total revolving credit facility | $ 2,000,000 | $ 1,100,000 | ||
Interest rate | 0.00% | 0.00% | ||
Debt Instrument, Maturity Date | Jan. 31, 2020 |
Derivatives and Hedging Activity (Details) $ in Thousands |
Mar. 31, 2017
USD ($)
instruments
|
---|---|
Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | |
Derivative [Line Items] | |
Number instruments | 4 |
Notional | $ 315,000 |
Designated as Hedging Instrument [Member] | Interest rate caps [Member] | |
Derivative [Line Items] | |
Number instruments | 2 |
Notional | $ 203,166 |
Not Designated as Hedging Instrument [Member] | Interest rate caps [Member] | |
Derivative [Line Items] | |
Number instruments | instruments | 3 |
Notional | $ 133,107 |
Derivatives and Hedging Activity (Details 2) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Effect of derivative instruments on the Consolidated Statements of Operations | ||
Unrealized holding gain/(loss) | $ 632 | $ (811) |
Amount of Gain or (Loss) Recognized in Income on Derivative | (1) | 0 |
Interest Rate Products [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | ||
Effect of derivative instruments on the Consolidated Statements of Operations | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (764) | (935) |
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ (54) | $ 0 |
Stock Based Compensation (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Stock Based Compensation (Textual) [Abstract] | ||
Stock based compensation expense | $ 3.4 | $ 3.9 |
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