UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): | July 30, 2012 |
UDR, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)
Maryland | 1-10524 | 54-0857512 |
_____________________ (State or other jurisdiction |
_____________ (Commission |
______________ (I.R.S. Employer |
of incorporation) | File Number) | Identification No.) |
1745 Shea Center Drive, Suite 200, Highlands Ranch, Colorado | 80129 | |
_________________________________ (Address of principal executive offices) |
___________ (Zip Code) |
Registrants telephone number, including area code: | (720) 283-6120 |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On July 30, 2012, UDR, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2012. A copy of the press release is furnished as Exhibit 99.1 to this report. The information contained in Exhibit 99.1 is being furnished to, but not filed with, the Securities and Exchange Commission.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Ex. No. - Description
-------------------------------------------------------------------------------------
99.1 - Earnings press release dated July 30, 2012.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
UDR, Inc. | ||||
July 30, 2012 | By: |
Warren L. Troupe
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Name: Warren L. Troupe | ||||
Title: Senior Executive Vice President |
Exhibit Index
Exhibit No. | Description | |
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99.1
|
Earnings press release dated July 30, 2012. |
Exhibit 99.1
Press Release
Contact: Chris Van Ens
Phone: 720.348.7762
UDR ANNOUNCES SECOND QUARTER 2012 RESULTS
~ Completes $539 Million Secondary Offering to Deleverage Enterprise ~
DENVER, CO (July 30, 2012) UDR, Inc. (the Company) (NYSE: UDR), a leading multifamily real estate investment trust, today announced its second quarter 2012 results.
The Company generated Funds from Operations (FFO) of $81.2 million or $0.33 per diluted share, for the quarter ended June 30, 2012, as compared to $63.6 million, or $0.31 per diluted share, in the second quarter of 2011. Excluding all non-recurring items, the Companys second quarter 2012 FFO-Core was $0.33 per diluted share. See the reconciliation below for further detail.
Q2 2012 | Q2 2011 | YTD 2012 | YTD 2011 | |||||||||||||
FFO- Core per diluted share |
$ | 0.33 | $ | 0.32 | $ | 0.67 | $ | 0.62 | ||||||||
Acquisition-related costs |
(0.001 | ) | (0.010 | ) | (0.003 | ) | (0.014 | ) | ||||||||
Benefit/(Cost) associated with debt extinguishment |
(0.017 | ) | | 0.001 | (0.021 | ) | ||||||||||
Gain on sale of marketable securities |
| | | 0.016 | ||||||||||||
Redemption of preferred stock |
(0.011 | ) | | (0.012 | ) | | ||||||||||
Gain on sale of TRS property |
0.031 | 0.004 | 0.032 | 0.005 | ||||||||||||
Other |
(0.001 | ) | | (0.001 | ) | | ||||||||||
FFO- Reported per diluted share |
$ | 0.33 | $ | 0.31 | $ | 0.68 | $ | 0.61 | ||||||||
A reconciliation of FFO to GAAP Net Income can be found on Attachment 2 of the Companys second quarter 2012 Supplemental Financial Information.
Our business continues to perform well, supported by advantageous multifamily supply and demand fundamentals that look favorable over the years ahead, said Tom Toomey, UDRs President and CEO. Mr. Toomey continued, We are pleased with the deleveraging and portfolio repositioning efforts we completed this quarter. With most of the heavy lifting behind us regarding both of these activities, UDR is well positioned for the future.
Operations
Same-store revenue increased 5.6 percent year-over-year while net operating income (NOI) increased 6.7 percent for the second quarter 2012. Same-store physical occupancy was flat at 95.8 percent year-over-year. Same-store expenses increased 3.3 percent driven by higher real estate taxes, utilities, repairs & maintenance, and administration and marketing costs.
The rate of turnover increased to an annualized rate of 58 percent from 55 percent in the second quarter of 2011.
Summary Same-Store Results Second Quarter 2012 versus Second Quarter 2011
Expense | Number of | |||||||||||||||||||||||
Revenue Growth/ | Growth/ | NOI Growth/ | % of Same- Store | Same-Store | Same-Store | |||||||||||||||||||
Region | Decline | Decline | Decline | Portfolio 1 | Occupancy2 | Homes3 | ||||||||||||||||||
Western |
6.4 | % | 4.6 | % | 7.2 | % | 42.7 | % | 95.3 | % | 12,390 | |||||||||||||
Mid-Atlantic |
4.2 | % | 4.0 | % | 4.3 | % | 30.3 | % | 96.4 | % | 9,127 | |||||||||||||
Southeastern |
4.9 | % | -2.1 | % | 9.1 | % | 20.0 | % | 95.8 | % | 9,515 | |||||||||||||
Southwestern |
8.3 | % | 8.8 | % | 8.0 | % | 7.0 | % | 95.9 | % | 3,507 | |||||||||||||
Total |
5.6 | % | 3.3 | % | 6.7 | % | 100.0 | % | 95.8 | % | 34,539 | |||||||||||||
1 2 |
Based on QTD 2012 NOI. Average same-store occupancy for the quarter. |
3 During the second quarter, 34,539 apartment homes, or approximately 83 percent of 41,681 total consolidated apartment homes, were classified as same-store. The Company defines same-store as all multifamily communities owned and stabilized for at least one year as of the beginning of the most recent quarter. |
Sequentially, same-store NOI increased by 1.8 percent driven by revenue growth of 2.0 percent and offset by a 2.5 percent increase in same-store expenses.
For the six months ended June 30, 2012, the Companys same-store revenue increased 5.5 percent as compared to the prior year while expenses increased 1.6 percent resulting in a same-store NOI increase of 7.4 percent as compared to the prior year period in 2011. Year-over-year occupancy decreased by 10 basis points to 95.6 percent.
Summary Same-Store Results YTD 2012 versus YTD 2011
Expense | Number of | |||||||||||||||||||||||
Revenue Growth/ | Growth/ | NOI Growth/ | % of Same- Store | Same-Store | Same-Store | |||||||||||||||||||
Region | Decline | Decline | Decline | Portfolio 1 | Occupancy2 | Homes3 | ||||||||||||||||||
Western |
6.2 | % | 2.8 | % | 7.8 | % | 42.0 | % | 94.8 | % | 12,066 | |||||||||||||
Mid-Atlantic |
4.3 | % | 2.1 | % | 5.4 | % | 31.1 | % | 96.2 | % | 9,127 | |||||||||||||
Southeastern |
4.8 | % | -1.8 | % | 8.7 | % | 20.5 | % | 95.9 | % | 9,515 | |||||||||||||
Southwestern |
8.3 | % | 4.0 | % | 11.5 | % | 6.4 | % | 96.1 | % | 3,115 | |||||||||||||
Total |
5.5 | % | 1.6 | % | 7.4 | % | 100.0 | % | 95.6 | % | 33,823 | |||||||||||||
1 2 |
Based on YTD 2012 NOI. Average same-store occupancy for YTD 2012. |
3 During the six months ended June 30, 2012, 33,823 apartment homes, or approximately 81 percent of 41,681 total consolidated apartment homes, were classified as same-store. The Company defines same-store as all multifamily communities owned and stabilized for at least one year as of the beginning of the most recent year. |
Technology Platform
Improving the Companys operational efficiency, while increasing resident satisfaction, are the compelling factors for our continued investment in technology. The Companys technology platform has gained acceptance and recognition from our residents as shown by the following utilization rates:
Established Technology Initiatives: | Q2 | 2012 | Q2 | 2011 | |||||||||
Resident payments received via ACH |
78 | % | 79 | % | |||||||||
Service requests entered through MyUDR.com |
79 | % | 82 | % | |||||||||
Move-ins initiated via an internet source |
57 | % | 62 | % | |||||||||
Renewals completed electronically |
87 | % | 87 | % | |||||||||
Acquisition Activity
On April 27, 2012, the Company acquired the remaining 80 percent ownership interests in two Austin, TX communities, Redstone Ranch and Lakeline Villas, from its Texas joint venture partner. The acquisitions included a cash payment of $11.7 million and the assumption of $34.4 million in debt. The communities comprise 633 homes and had an average income per occupied home of $907 per month in the second quarter.
Disposition Activity
During the second quarter of 2012, the Company sold fifteen unencumbered communities containing 4,931 homes for $476 million in gross proceeds. At the time of disposition, total income per occupied home for the communities averaged $967 per month. The dispositions were located in Phoenix, AZ; Jacksonville, FL; Dallas, TX and Richmond, VA and marked the Companys exit from the Phoenix, AZ and Jacksonville, FL markets. Additional details related to the transactions can be found in the April 4, 2012 and June 28, 2012 press releases on the Companys website at www.udr.com.
Joint Venture Investment Activity
The Company, through a joint venture, acquired a land parcel in Boston, MA for $25 million.
Capital Markets Activity
The Company completed a public offering of 21.9 million shares of common stock, including the underwriters overallotment option, at a net price of $24.69 per share. Proceeds of approximately $538.8 million, after underwriting discounts, commissions and offering expenses, were used to repay $363.9 million of 3.3 percent secured debt due from 2012 to 2014, to redeem all of the Companys outstanding 6.75% Series G Preferred Stock for $81.6 million plus accrued and unpaid dividends, to repay a portion of the outstanding balance under its unsecured credit facility and for working capital and general corporate purposes. Additional details related to the transactions can be found in the April 27, 2012, May 29, 2012 and May 30, 2012 press releases on the Companys website at www.udr.com.
During the second quarter of 2012 and prior to the May secondary equity offering, the Company raised approximately $16.8 million of equity through the sale of approximately 666 thousand shares at a weighted average net price of $25.30 per share under its previous and new At the Market equity offering program. In early April, the Company announced a new ATM program through which it could sell up to twenty million common shares; 19.9 million shares remain available for issuance.
On April 16, 2012, the Company repaid a $41.8 million, 2.49 percent construction loan that was secured by it Signal Hill community in Woodbridge, VA.
Balance Sheet
At June 30, 2012, the Company had $1.2 billion in availability through a combination of cash and undrawn capacity on its credit facilities, giving the Company ample flexibility to meet its near-term capital needs for debt maturities, development and redevelopment activities.
The Companys total indebtedness at June 30, 2012 was $3.3 billion. The Company ended the second quarter with fixed-rate debt representing 89 percent of its total debt, a total blended interest rate of 4.5 percent and a weighted average maturity of 5.1 years. UDRs fixed charge coverage ratio (adjusted for non-recurring items) was 2.7 times.
2012 Guidance
The Company re-affirms its full-year 2012 guidance which was last updated on June 11, 2012:
Original Range | Revised Range | |||||||||||||||
As of Feb. 6, 2012 | As of June 11 , 2012 | |||||||||||||||
FFO per diluted share | $ | 1.37 - $1.43 | $ | 1.34 - $1.39 | ||||||||||||
Same-store operations: | ||||||||||||||||
Revenue | 5.0% - 6.0 | % | 5.0% - 6.0 | % | ||||||||||||
Expenses | 3.0% - 3.5 | % | 2.0% - 3.0 | % | ||||||||||||
Net operating income (NOI) | 6.0% - 7.5 | % | 6.0% - 8.0 | % | ||||||||||||
Portfolio activity ($M): | Original Range(1) | Completed(2) | Remaining(2) | |||||||||||||
Acquisitions | Market dependent | $ | 46 | Market dependent | ||||||||||||
Dispositions | $400 to $600 | $ | 610 | $ | 0 | |||||||||||
Development spend | $ | 400 | $ | 220 | $ | 180 | ||||||||||
Redevelopment Spend | $ | 100 | $ | 40 | $ | 60 | ||||||||||
JV investments, net | $ | 290 | $ | 290 | Market dependent | |||||||||||
Financing Activity ($M): | Original Range(1) | Completed(2) | Remaining(2) | |||||||||||||
Equity | Market dependent | $ | 756 | Market dependent | ||||||||||||
Debt | $ | 400 | $ | 400 | Market dependent | |||||||||||
General & Administrative expenses ($M)(3) | $ | 32-$34 | ||||||||||||||
|
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(1) As of February 6, 2012. | ||||||||||||||||
(2) As of July 30, 2012. | ||||||||||||||||
(3) General and Administrative expenses are net of tax benefit and include a one-time charge for vesting of long-term incentive program. |
All guidance is based on current expectations of future economic conditions and the judgment of the Companys management team. The following reconciles from forecasted FFO per share to GAAP Net Loss per share:
FFO Guidance Reconciliation per Diluted Share | ||||||||
Low | High | |||||||
Forecasted 2012 FFO Guidance per Diluted Share |
$ | 1.34 | $ | 1.39 | ||||
Conversion to GAAP Share Count |
(0.08 | ) | (0.08 | ) | ||||
Depreciation |
(1.50 | ) | (1.50 | ) | ||||
Non-Controlling Interests |
(0.03 | ) | (0.03 | ) | ||||
Preferred Dividends |
(0.01 | ) | (0.01 | ) | ||||
Tax Benefit |
0.09 | 0.09 | ||||||
Gain on Dispositions |
0.99 | 0.99 | ||||||
Forecasted 2012 GAAP Net Income per Diluted Share |
$ | 0.80 | $ | 0.85 | ||||
Supplemental Information
The Company offers Supplemental Financial Information that provides details on the financial position and operating results of the Company which is available on the Companys website at www.udr.com.
Conference Call and Webcast Information
UDR will host a webcast and conference call at 11:00 a.m. EDT on July 30, 2012 to discuss second quarter results. A webcast will be available on UDRs website at www.udr.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.
To participate in the teleconference dial 877-941-8609 for domestic and 480-629-9771 for international and provide the following conference ID number: 4549991.
A replay of the conference call will be available through August 30, 2012, by dialing
800-406-7325 for domestic and 303-590-3030 for international and entering the confirmation number,
4549991, when prompted for the pass code.
A replay of the call will be available for 90 days on UDRs website at www.udr.com.
Full Text of the Earnings Report and Supplemental Financial Information
Internet The full text of the earnings report and Supplemental Financial Information will be available on the Companys website at www.udr.com.
Mail For those without Internet access, the second quarter 2012 earnings report and Supplemental Financial Information will be available by mail or fax, on request. To receive a copy, please call UDR Investor Relations at 720-348-7762.
Forward Looking Statements
Certain statements made in this press release may constitute forward-looking statements. Words such as expects, intends, believes, anticipates, plans, likely, will, seeks, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors, which include, but are not limited to, unfavorable changes in the apartment market, changing economic conditions, the impact of inflation/deflation on rental rates and property operating expenses, expectations concerning availability of capital and the stabilization of the capital markets, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule, expectations on job growth, home affordability and demand/supply ratio for multifamily housing, expectations concerning development and redevelopment activities, expectations on occupancy levels, expectations concerning the Vitruvian Park® development, expectations concerning the joint ventures with third parties, expectations that automation will help grow net operating income, expectations on annualized net operating income and other risk factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time, including the Companys Annual Report on Form 10-K, the Companys Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking statements. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Companys expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the U.S. securities laws.
This release and these forward-looking statements include UDRs analysis and conclusions and reflect UDRs judgment as of the date of these materials. UDR assumes no obligation to revise or update to reflect future events or circumstances.
About UDR, Inc.
UDR, Inc. (NYSE:UDR), an S&P 400 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of June 30, 2012, UDR owned or had an ownership position in 54,838 apartment homes including 2,440 homes under development. For 40 years, UDR has delivered long-term value to shareholders, the best standard of service to residents, and the highest quality experience for associates. Additional information can be found on the Companys website at www.udr.com.
Attachment 1
UDR, Inc.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
In thousands, except per share amounts | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Rental income |
$ | 177,475 | $ | 150,637 | $ | 349,717 | $ | 288,449 | ||||||||
Rental expenses: |
||||||||||||||||
Real estate taxes and insurance |
21,535 | 17,503 | 42,446 | 35,164 | ||||||||||||
Personnel |
13,660 | 12,531 | 27,169 | 24,388 | ||||||||||||
Utilities |
8,676 | 7,876 | 18,041 | 15,597 | ||||||||||||
Repair and maintenance |
9,350 | 7,795 | 17,334 | 15,045 | ||||||||||||
Administrative and marketing |
3,921 | 3,454 | 7,452 | 6,557 | ||||||||||||
Property management |
4,880 | 4,142 | 9,617 | 7,932 | ||||||||||||
Other operating expenses |
1,434 | 1,542 | 2,817 | 2,978 | ||||||||||||
63,456 | 54,843 | 124,876 | 107,661 | |||||||||||||
Non-property income: |
||||||||||||||||
Loss from unconsolidated entities |
(2,412 | ) | (1,348 | ) | (5,103 | ) | (2,680 | ) | ||||||||
Tax benefit for taxable REIT subsidiary, net |
| | 22,876 | | ||||||||||||
Joint venture management fees |
2,717 | 2,537 | 5,706 | 3,811 | ||||||||||||
Gain on sale of investments |
| | | 3,123 | ||||||||||||
Interest and other income |
506 | 316 | 1,200 | 455 | ||||||||||||
811 | 1,505 | 24,679 | 4,709 | |||||||||||||
Other expenses: |
||||||||||||||||
Real estate depreciation and amortization |
84,474 | 79,908 | 172,381 | 150,123 | ||||||||||||
Interest |
37,399 | 37,261 | 76,572 | 72,040 | ||||||||||||
Amortization of convertible debt premium |
| 359 | | 718 | ||||||||||||
Other debt charges/(benefits), net (1) |
4,143 | 40 | (285 | ) | 4,059 | |||||||||||
Total interest |
41,542 | 37,660 | 76,287 | 76,817 | ||||||||||||
Acquisition-related costs |
154 | 2,074 | 496 | 2,724 | ||||||||||||
General and administrative (2) |
10,766 | 10,801 | 19,803 | 20,781 | ||||||||||||
Other depreciation and amortization |
1,017 | 986 | 1,935 | 2,029 | ||||||||||||
137,953 | 131,429 | 270,902 | 252,474 | |||||||||||||
Loss from continuing operations |
(23,123 | ) | (34,130 | ) | (21,382 | ) | (66,977 | ) | ||||||||
Income from discontinued operations |
179,429 | 49,039 | 264,316 | 53,230 | ||||||||||||
Consolidated net income/(loss) |
156,306 | 14,909 | 242,934 | (13,747 | ) | |||||||||||
Net (income)/loss attributable to non-controlling interests |
(5,954 | ) | (258 | ) | (9,426 | ) | 523 | |||||||||
Net income/(loss) attributable to UDR, Inc. |
150,352 | 14,651 | 233,508 | (13,224 | ) | |||||||||||
Distributions to preferred stockholders Series E (Convertible) |
(931 | ) | (931 | ) | (1,862 | ) | (1,862 | ) | ||||||||
Distributions to preferred stockholders Series G |
(909 | ) | (1,396 | ) | (2,286 | ) | (2,833 | ) | ||||||||
(Premium)/discount on preferred stock repurchases, net |
(2,791 | ) | (175 | ) | (2,791 | ) | (175 | ) | ||||||||
Net income/(loss) attributable to common stockholders |
$ | 145,721 | $ | 12,149 | $ | 226,569 | $ | (18,094 | ) | |||||||
Earnings/(loss) per weighted average common share basic and diluted: |
||||||||||||||||
Loss from continuing operations available to common stockholders |
($0.14 | ) | ($0.19 | ) | ($0.17 | ) | ($0.38 | ) | ||||||||
Income from discontinued operations |
$ | 0.77 | $ | 0.26 | $ | 1.16 | $ | 0.29 | ||||||||
Net income/(loss) attributable to common stockholders |
$ | 0.62 | $ | 0.06 | $ | 0.99 | ($0.10 | ) | ||||||||
Common distributions declared per share |
$ | 0.220 | $ | 0.200 | $ | 0.440 | $ | 0.3850 | ||||||||
Weighted average number of common shares outstanding basic and diluted |
234,031 | 190,479 | 227,766 | 186,527 |
(1) | Prepayment penalties, write-off of deferred financing costs and fair market value adjustments on early debt extinguishment. |
(2) | Net of current quarter tax benefit and including a one-time charge for vesting of long-term incentive program. |
Attachment 2
UDR, Inc.
Funds From Operations
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
In thousands, except per share amounts | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income/(loss) attributable to UDR, Inc. |
$ | 150,352 | $ | 14,651 | $ | 233,508 | $ | (13,224 | ) | |||||||
Distributions to preferred stockholders |
(1,840 | ) | (2,327 | ) | (4,148 | ) | (4,695 | ) | ||||||||
Real estate depreciation and amortization, including discontinued operations |
84,474 | 91,161 | 178,721 | 175,276 | ||||||||||||
Non-controlling interests |
5,954 | 258 | 9,426 | (523 | ) | |||||||||||
Real estate depreciation and amortization on unconsolidated joint ventures |
8,359 | 2,844 | 15,782 | 5,692 | ||||||||||||
Net gain on the sale of depreciable property in discontinued operations,
excluding RE3 |
(164,257 | ) | (43,767 | ) | (244,782 | ) | (43,808 | ) | ||||||||
Tax benefit for taxable REIT subsidiary |
| | (22,876 | ) | | |||||||||||
(Premium)/discount on preferred stock repurchases, net |
(2,791 | ) | (175 | ) | (2,791 | ) | (175 | ) | ||||||||
Funds from operations (FFO) basic |
$ | 80,251 | $ | 62,645 | $ | 162,840 | $ | 118,543 | ||||||||
Distribution to preferred stockholders Series E (Convertible) |
931 | 931 | 1,862 | 1,862 | ||||||||||||
Funds from operations diluted |
$ | 81,182 | $ | 63,576 | $ | 164,702 | $ | 120,405 | ||||||||
FFO per common share basic |
$ | 0.33 | $ | 0.32 | $ | 0.69 | $ | 0.61 | ||||||||
FFO per common share diluted |
$ | 0.33 | $ | 0.31 | $ | 0.68 | $ | 0.61 | ||||||||
Weighted average number of common shares and OP Units outstanding basic |
243,448 | 198,109 | 237,185 | 192,880 | ||||||||||||
Weighted average number of common shares, OP Units, and common stock |
||||||||||||||||
equivalents outstanding diluted |
247,832 | 203,188 | 241,549 | 197,913 |
FFO is defined as net income (computed in accordance with GAAP), excluding impairment write-downs of depreciable real estate or of investments in non-consolidated investees that are driven by measurable decreases in the fair value of depreciable real estate held by the investee, gains (or losses) from sales of depreciable property, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. This definition conforms with the National Association of Real Estate Investment Trusts definition issued in April 2002. UDR considers FFO in evaluating property acquisitions and its operating performance and believes that FFO should be considered along with, but not as an alternative to, net income and cash flows as a measure of UDRs activities in accordance with generally accepted accounting principles and is not necessarily indicative of cash available to fund cash needs.
RE3 gain on sales, net of taxes, is defined as net sales proceeds less a tax provision and any related valuation allowance release, and the gross investment basis of the asset before accumulated depreciation. We consider FFO with RE3 gain on sales, net of taxes, to be a meaningful supplemental measure of performance because the short-term use of funds produce profits which differ from the traditional long-term investment in real estate for REITs.
Attachment 3
UDR, Inc.
Consolidated Balance Sheets
June 30, | December 31, | |||||||||||||||
In thousands, except share and per share amounts | 2012 | 2011 | ||||||||||||||
(unaudited) | (audited) | |||||||||||||||
ASSETS | ||||||||||||||||
Real estate owned: | ||||||||||||||||
Real estate held for investment |
$ | 7,479,239 | $ | 7,269,347 | ||||||||||||
Less: accumulated depreciation | (1,769,530 | ) | (1,605,090 | ) | ||||||||||||
5,709,709 | 5,664,257 | |||||||||||||||
Real estate under development |
||||||||||||||||
(net of accumulated depreciation of $0 and $570) |
282,006 | 246,229 | ||||||||||||||
Real estate sold or held for disposition |
||||||||||||||||
(net of accumulated depreciation of $0 and $226,067) |
- | 332,258 | ||||||||||||||
|
||||||||||||||||
Total real estate owned, net of accumulated depreciation |
5,991,715 | 6,242,744 | ||||||||||||||
Cash and cash equivalents | 184,112 | 12,503 | ||||||||||||||
Restricted cash | 24,580 | 24,634 | ||||||||||||||
Deferred financing costs, net | 28,579 | 30,068 | ||||||||||||||
Notes receivable | 39,409 | - | ||||||||||||||
Investment in unconsolidated joint ventures | 580,098 | 213,040 | ||||||||||||||
Other assets | 124,128 | 198,365 | ||||||||||||||
Total assets |
$ | 6,972,621 | $ | 6,721,354 | ||||||||||||
|
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LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||||||||||
Secured debt | $ | 1,442,361 | $ | 1,891,553 | ||||||||||||
Unsecured debt | 1,902,707 | 2,026,817 | ||||||||||||||
Real estate taxes payable | 13,087 | 13,397 | ||||||||||||||
Accrued interest payable | 31,156 | 23,208 | ||||||||||||||
Security deposits and prepaid rent | 35,534 | 35,516 | ||||||||||||||
Distributions payable | 57,313 | 51,019 | ||||||||||||||
Deferred fees and gains on the sale of depreciable property | 29,430 | 29,100 | ||||||||||||||
Accounts payable, accrued expenses, and other liabilities | 102,793 | 95,485 | ||||||||||||||
Total liabilities |
3,614,381 | 4,166,095 | ||||||||||||||
Redeemable non-controlling interests in operating partnership | 243,305 | 236,475 | ||||||||||||||
Stockholders equity | ||||||||||||||||
Preferred stock, no par value; 50,000,000 shares authorized |
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2,803,812 shares of 8.00% Series E Cumulative Convertible issued | ||||||||||||||||
and outstanding (2,803,812 shares at December 31, 2011) | 46,571 | 46,571 | ||||||||||||||
0 shares of 6.75% Series G Cumulative Redeemable issued | ||||||||||||||||
and outstanding (3,264,362 shares at December 31, 2011) | | 81,609 | ||||||||||||||
Common stock, $0.01 par value; 350,000,000 shares authorized |
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250,205,424 shares issued and outstanding (219,650,225 shares at December 31, 2011) | 2,502 | 2,197 | ||||||||||||||
Additional paid-in capital |
4,098,785 | 3,340,470 | ||||||||||||||
Distributions in excess of net income |
(1,024,148 | ) | (1,142,895 | ) | ||||||||||||
Accumulated other comprehensive loss, net |
(13,604 | ) | (13,902 | ) | ||||||||||||
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Total stockholders equity |
3,110,106 | 2,314,050 | ||||||||||||||
Non-controlling interest |
4,829 | 4,734 | ||||||||||||||
|
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Total equity |
3,114,935 | 2,318,784 | ||||||||||||||
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Total liabilities and stockholders equity |
$ | 6,972,621 | $ | 6,721,354 | ||||||||||||
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