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): | October 29, 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 October 29, 2012, UDR, Inc. issued a press release announcing its financial results for the quarter ended September 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 October 29, 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. | ||||
October 29, 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 October 29, 2012. |
Exhibit 99.1
Press Release
Contact: Chris Van Ens
Phone: 720.348.7762
UDR ANNOUNCES THIRD QUARTER 2012 RESULTS
~ New York Enters Same-Store Portfolio ~
DENVER, CO (October 29, 2012) UDR, Inc. (the Company) (NYSE: UDR), a leading multifamily real estate investment trust, today announced its third quarter 2012 results.
The Company generated Funds from Operations (FFO) of $86.5 million or $0.33 per diluted share, for the quarter ended September 30, 2012, as compared to $73.0 million, or $0.32 per diluted share, in the third quarter of 2011. Excluding non-recurring items, the Companys third quarter 2012 FFO-Core was $0.33 per diluted share. See the reconciliation below for further detail.
Q3 2012 | Q3 2011 | YTD 2012 | YTD 2011 | |||||||||||||
FFO- Core per diluted share |
$ | 0.33 | $ | 0.32 | $ | 1.00 | $ | 0.94 | ||||||||
Acquisition-related costs |
(0.005 | ) | (0.009 | ) | (0.009 | ) | (0.023 | ) | ||||||||
Benefit/(Cost) associated with debt extinguishment |
| 0.002 | 0.001 | (0.013 | ) | |||||||||||
Gain on sale of marketable securities |
| 0.011 | | 0.027 | ||||||||||||
Redemption of preferred stock |
| | (0.011 | ) | | |||||||||||
Gain on sale of TRS property |
| | 0.031 | 0.004 | ||||||||||||
Other |
| (0.001 | ) | (0.001 | ) | (0.005 | ) | |||||||||
FFO- Reported per diluted share |
$ | 0.33 | $ | 0.32 | $ | 1.01 | $ | 0.93 | ||||||||
A reconciliation of FFO to GAAP Net Income can be found on Attachment 2 of the Companys third quarter 2012 Supplemental Financial Information.
The strong supply and demand fundamentals present in the multifamily industry continue to support the positive outlook for our business, said Tom Toomey, UDRs President and CEO. Mr. Toomey continued, The actions we have taken over the past three years to grow our portfolio in select high-barrier to entry markets and deleverage our balance sheet directly align with our objective of creating sustainable shareholder value.
Operations
Same-store revenue increased 5.5 percent year-over-year while net operating income (NOI) increased 6.4 percent for the third quarter 2012. Same-store physical occupancy increased 10 basis points year-over-year to 95.8 percent. Same-store expenses increased 3.6 percent driven primarily by higher real estate taxes.
Resident turnover increased to an annualized rate of 66 percent from 65 percent in the third quarter of 2011.
Summary Same-Store Results Third Quarter 2012 versus Third 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 |
5.5 | % | 7.8 | % | 4.5 | % | 40.2 | % | 95.1 | % | 12,617 | |||||||||||||
Mid-Atlantic |
5.2 | % | 2.2 | % | 6.6 | % | 35.2 | % | 96.3 | % | 10,813 | |||||||||||||
Southeastern |
5.0 | % | 0.7 | % | 7.6 | % | 17.9 | % | 96.1 | % | 9,515 | |||||||||||||
Southwestern |
7.5 | % | -0.9 | % | 14.2 | % | 6.7 | % | 96.3 | % | 3,507 | |||||||||||||
Total |
5.5 | % | 3.6 | % | 6.4 | % | 100.0 | % | 95.8 | % | 36,452 | |||||||||||||
1 2 |
Based on QTD 2012 NOI. Average same-store occupancy for the quarter. |
3 During the third quarter, 36,452 apartment homes, or approximately 87 percent of 41,827 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 0.9 percent driven by revenue growth of 1.8 percent and offset by a 3.6 percent increase in same-store expenses.
For the nine months ended September 30, 2012, the Companys same-store revenue increased 5.3 percent as compared to the prior year while expenses increased 2.4 percent resulting in a same-store NOI increase of 6.8 percent as compared to the prior year period in 2011. Year-over-year occupancy was flat at 95.7 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 |
5.9 | % | 4.6 | % | 6.4 | % | 42.0 | % | 94.9 | % | 12,066 | |||||||||||||
Mid-Atlantic |
4.2 | % | 2.3 | % | 5.1 | % | 31.1 | % | 96.2 | % | 9,127 | |||||||||||||
Southeastern |
4.8 | % | -1.0 | % | 8.4 | % | 20.4 | % | 96.0 | % | 9,515 | |||||||||||||
Southwestern |
8.3 | % | 3.0 | % | 12.2 | % | 6.5 | % | 96.3 | % | 3,115 | |||||||||||||
Total |
5.3 | % | 2.4 | % | 6.8 | % | 100.0 | % | 95.7 | % | 33,823 | |||||||||||||
1 2 |
Based on YTD 2012 NOI. Average same-store occupancy for YTD 2012. |
3 During the six months ended September 30, 2012, 33,823 apartment homes, or approximately 81 percent of 41,827 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. Residents have a high utilization rate of the Companys technology platform:
Established Technology Initiatives: | Q3 | 2012 | Q3 | 2011 | |||||||||
Resident payments received via ACH |
76 | % | 77 | % | |||||||||
Service requests entered through MyUDR.com |
76 | % | 80 | % | |||||||||
Move-ins initiated via an internet source |
60 | % | 63 | % | |||||||||
Renewals completed electronically |
84 | % | 87 | % | |||||||||
Development Activity
The Company commenced construction on its Beach Walk development in Huntington Beach, CA. Prior to commencement, the Company acquired the remaining 10 percent ownership interest in Beach Walk from its former joint venture partner. The community will consist of 173 homes, has an estimated construction cost of $50.7 million and is expected to be delivered in the second quarter of 2014.
Joint Venture Investment Activity
The Company, through a joint venture, acquired a land parcel in Santa Monica, CA for $10.3 million.
Balance Sheet
At September 30, 2012, the Company had $1.1 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 September 30, 2012 was $3.3 billion. The Company ended the third 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 4.8 years. UDRs fixed charge coverage ratio (adjusted for non-recurring items) was 2.9 times.
Post Quarter Activity
Joint Venture Investment Activity
In a transaction scheduled to close on October 31, the Company will exchange its ownership interests in four operating communities and two land parcels in the UDR/MetLife I joint venture, in addition to $10 million in cash, for an increased ownership interest in The Olivian, an A-quality high-rise building located in downtown Seattle. At closing, the Company will own 50 percent of The Olivian and the community will be contributed to the UDR/MetLife II joint venture. The Company will continue to fee manage the four operating communities it will exchange out of. Additional transaction details are provided below:
Pre-Transaction | Post-Transaction | |||||||||||||||||||||||||||||
Income per Occupied | UDR Ownership | UDR Ownership | ||||||||||||||||||||||||||||
Community | Location | Homes | Year Built | Home1 | Occupancy1 | Interest | JV2 | Interest | JV2 | |||||||||||||||||||||
Acquired Ownership Interest | ||||||||||||||||||||||||||||||
The Olivian | Seattle | 224 | 2009 | $3,451 | 96.6% | 9.1% | ML I | 50.0% | ML II | |||||||||||||||||||||
Relinquished Ownership Interest |
||||||||||||||||||||||||||||||
7 Riverway
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Houston | 175 | 2007 | $ | 3,758 | 97.5 | % | | ML I | | n/a | |||||||||||||||||||
Lodge at Lakecrest
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Tampa | 464 | 2008 | $ | 1,307 | 95.8 | % | | ML I | | n/a | |||||||||||||||||||
Ashton South End
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Charlotte | 310 | 2009 | $ | 1,893 | 96.5 | % | | ML I | | n/a | |||||||||||||||||||
Hawfield Farms
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Charlotte | 210 | 2009 | $ | 1,652 | 96.9 | % | | ML I | | n/a | |||||||||||||||||||
W. Avg./Total |
1,159 | 2009 | $ | 1,896 | 96.4 | % | 12.0 | % | ML I | 0.0 | % | n/a | ||||||||||||||||||
|
||||||||||||||||||||||||||||||
2 Land Parcels
|
Houston, Chicago | n/a | n/a | n/a | n/a | 3.1 | % | ML I | 0.0 | % | n/a | |||||||||||||||||||
1 3Q 2012 averages.
2 ML I represents the UDR/MetLife I joint venture. ML II represents the UDR/MetLife II joint venture. |
The Olivian has a 4.5 percent, $63.4 million loan with a term of 7 years. Debt on the four operating communities and two land parcels in which UDR will exchange out of totals $134.7 million, carries a weighted average interest rate of 3.5 percent and has a term of 7 years.
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
The Company will host a webcast and conference call at 11:00 a.m. EDT on October 29, 2012 to discuss third quarter results. A webcast will be available on the Companys 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 877-941-0844 for domestic and 480-629-9835 for international and provide the following conference ID number: 4565351.
A replay of the conference call will be available through November 30, 2012, by dialing
800-406-7325 for domestic and 303-590-3030 for international and entering the confirmation number,
4565351, when prompted for the pass code.
A replay of the call will be available for 90 days on the Companys 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 third 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 and 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 September 30, 2012, UDR owned or had an ownership position in 54,985 apartment homes including 2,441 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(1)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In thousands, except per share amounts | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Rental income |
$ | 181,766 | $ | 163,859 | $ | 531,483 | $ | 452,308 | ||||||||
Rental expenses: |
||||||||||||||||
Real estate taxes and insurance |
22,633 | 19,949 | 65,079 | 55,113 | ||||||||||||
Personnel |
14,479 | 12,153 | 41,648 | 36,541 | ||||||||||||
Utilities |
9,641 | 8,898 | 27,682 | 24,495 | ||||||||||||
Repair and maintenance |
8,660 | 8,869 | 25,994 | 23,914 | ||||||||||||
Administrative and marketing |
4,059 | 2,958 | 11,511 | 9,515 | ||||||||||||
Property management |
4,998 | 4,507 | 14,615 | 12,439 | ||||||||||||
Other operating expenses |
1,467 | 1,495 | 4,284 | 4,473 | ||||||||||||
65,937 | 58,829 | 190,813 | 166,490 | |||||||||||||
Non-property income: |
||||||||||||||||
Loss from unconsolidated entities |
(719 | ) | (1,580 | ) | (5,822 | ) | (4,260 | ) | ||||||||
Tax valuation allowance for RE3 (2) |
| | 22,876 | | ||||||||||||
Joint venture management fees |
3,320 | 2,542 | 9,026 | 6,353 | ||||||||||||
Gain on sale of investments |
| 2,550 | | 5,673 | ||||||||||||
Interest and other income |
1,235 | 137 | 2,435 | 592 | ||||||||||||
3,836 | 3,649 | 28,515 | 8,358 | |||||||||||||
Other expenses: |
||||||||||||||||
Real estate depreciation and amortization |
88,223 | 85,835 | 260,604 | 235,958 | ||||||||||||
Interest |
31,837 | 39,616 | 108,409 | 111,656 | ||||||||||||
Amortization of convertible debt premium |
| 359 | | 1,077 | ||||||||||||
Other debt charges/(benefits), net (3) |
8 | (7 | ) | (277 | ) | 4,052 | ||||||||||
Total interest |
31,845 | 39,968 | 108,132 | 116,785 | ||||||||||||
Acquisition-related costs |
1,312 | 2,047 | 1,808 | 4,771 | ||||||||||||
Severance charges |
| 254 | | 1,025 | ||||||||||||
General and administrative |
8,710 | 9,559 | 31,331 | 29,455 | ||||||||||||
Tax (benefit)/expense for RE3, net |
(2,960 | ) | 59 | (5,778 | ) | 173 | ||||||||||
Other depreciation and amortization |
1,078 | 983 | 3,013 | 3,012 | ||||||||||||
128,208 | 138,705 | 399,110 | 391,179 | |||||||||||||
Loss from continuing operations |
(8,543 | ) | (30,026 | ) | (29,925 | ) | (97,003 | ) | ||||||||
(Loss)/income from discontinued operations |
(1,133 | ) | 16,240 | 263,183 | 69,470 | |||||||||||
Consolidated net (loss)/income |
(9,676 | ) | (13,786 | ) | 233,258 | (27,533 | ) | |||||||||
Net loss/(income) attributable to non-controlling interests |
645 | 535 | (8,781 | ) | 1,058 | |||||||||||
Net (loss)/income attributable to UDR, Inc. |
(9,031 | ) | (13,251 | ) | 224,477 | (26,475 | ) | |||||||||
Distributions to preferred stockholders Series E (Convertible) |
(931 | ) | (931 | ) | (2,793 | ) | (2,793 | ) | ||||||||
Distributions to preferred stockholders Series G |
| (1,377 | ) | (2,286 | ) | (4,210 | ) | |||||||||
Premium on preferred stock repurchases, net |
| | (2,791 | ) | (175 | ) | ||||||||||
Net (loss)/income attributable to common stockholders |
$ | (9,962 | ) | $ | (15,559 | ) | $ | 216,607 | $ | (33,653 | ) | |||||
Earnings/(loss) per weighted average common share basic and diluted: |
||||||||||||||||
Loss from continuing operations available to common stockholders |
($0.04 | ) | ($0.15 | ) | ($0.20 | ) | ($0.53 | ) | ||||||||
Income from discontinued operations |
$ | 0.00 | $ | 0.08 | $ | 1.12 | $ | 0.35 | ||||||||
Net (loss)/income attributable to common stockholders |
($0.04 | ) | ($0.07 | ) | $ | 0.92 | ($0.17 | ) | ||||||||
Common distributions declared per share |
$ | 0.220 | $ | 0.200 | $ | 0.660 | $ | 0.585 | ||||||||
Weighted average number of common shares outstanding basic and diluted |
249,825 | 213,816 | 235,173 | 195,723 |
(1) | See Attachment 12 for definitions and other terms. |
(2) | Represents the net tax benefit from the one-time reversal of a valuation allowance from the Companys taxable REIT subsidiary (TRS). |
(3) | Prepayment penalties, write-off of deferred financing costs and fair market value adjustments on early debt extinguishment. |
Attachment 2
UDR, Inc.
Funds From Operations(1)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In thousands, except per share amounts | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income/(loss) attributable to UDR, Inc. |
$ | (9,031 | ) | $ | (13,251 | ) | $ | 224,477 | $ | (26,475 | ) | |||||
Distributions to preferred stockholders |
(931 | ) | (2,308 | ) | (5,079 | ) | (7,003 | ) | ||||||||
Real estate depreciation and amortization, including discontinued operations |
88,223 | 96,554 | 266,944 | 271,830 | ||||||||||||
Non-controlling interests |
(645 | ) | (535 | ) | 8,781 | (1,058 | ) | |||||||||
Real estate depreciation and amortization on unconsolidated joint ventures |
6,852 | 2,956 | 22,634 | 8,648 | ||||||||||||
Net loss/(gain) on the sale of depreciable property in discontinued
operations, excluding RE3 |
1,133 | (11,364 | ) | (243,649 | ) | (55,172 | ) | |||||||||
Tax benefit for RE3 |
| | (22,876 | ) | | |||||||||||
Premium on preferred stock repurchases, net |
| | (2,791 | ) | (175 | ) | ||||||||||
Funds from operations (FFO) basic |
$ | 85,601 | $ | 72,052 | $ | 248,441 | $ | 190,595 | ||||||||
Distribution to preferred stockholders Series E (Convertible) |
931 | 931 | 2,793 | 2,793 | ||||||||||||
Funds from operations diluted |
$ | 86,532 | $ | 72,983 | $ | 251,234 | $ | 193,388 | ||||||||
FFO per common share basic |
$ | 0.33 | $ | 0.32 | $ | 1.02 | $ | 0.94 | ||||||||
FFO per common share diluted |
$ | 0.33 | $ | 0.32 | $ | 1.01 | $ | 0.93 | ||||||||
Weighted average number of common shares and OP Units outstanding basic |
259,231 | 222,051 | 244,587 | 202,711 | ||||||||||||
Weighted average number of common shares, OP Units, and common stock |
||||||||||||||||
equivalents outstanding diluted |
263,631 | 227,243 | 248,983 | 207,854 |
(1) See Attachment 12 for definitions and other terms.
Attachment 3
UDR, Inc.
Consolidated Balance Sheets
September 30, | December 31, | |||||||||||||||
In thousands, except share and per share amounts | 2012 | 2011 | ||||||||||||||
(unaudited) | (audited) | |||||||||||||||
ASSETS | ||||||||||||||||
Real estate owned: | ||||||||||||||||
Real estate held for investment |
$ | 7,495,985 | $ | 7,269,347 | ||||||||||||
Less: accumulated depreciation | (1,842,520 | ) | (1,605,090 | ) | ||||||||||||
5,653,465 | 5,664,257 | |||||||||||||||
Real estate under development |
||||||||||||||||
(net of accumulated depreciation of $0 and $570) |
355,465 | 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 |
6,008,930 | 6,242,744 | ||||||||||||||
Cash and cash equivalents | 82,377 | 12,503 | ||||||||||||||
Restricted cash | 25,091 | 24,634 | ||||||||||||||
Deferred financing costs, net | 26,810 | 30,068 | ||||||||||||||
Notes receivable | 63,998 | - | ||||||||||||||
Investment in unconsolidated joint ventures | 579,338 | 213,040 | ||||||||||||||
Other assets | 124,358 | 198,365 | ||||||||||||||
Total assets |
$ | 6,910,902 | $ | 6,721,354 | ||||||||||||
|
||||||||||||||||
LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||||||||||
Secured debt | $ | 1,439,762 | $ | 1,891,553 | ||||||||||||
Unsecured debt | 1,902,953 | 2,026,817 | ||||||||||||||
Real estate taxes payable | 26,414 | 13,397 | ||||||||||||||
Accrued interest payable | 29,498 | 23,208 | ||||||||||||||
Security deposits and prepaid rent | 38,737 | 35,516 | ||||||||||||||
Distributions payable | 57,916 | 51,019 | ||||||||||||||
Deferred fees and gains on the sale of depreciable property | 29,458 | 29,100 | ||||||||||||||
Accounts payable, accrued expenses, and other liabilities | 97,164 | 95,485 | ||||||||||||||
Total liabilities |
3,621,902 | 4,166,095 | ||||||||||||||
Redeemable non-controlling interests in operating partnership | 233,379 | 236,475 | ||||||||||||||
Stockholders equity | ||||||||||||||||
Preferred stock, no par value; 50,000,000 shares authorized |
||||||||||||||||
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 |
||||||||||||||||
250,136,597 shares issued and outstanding (219,650,225 shares at December 31, 2011) | 2,501 | 2,197 | ||||||||||||||
Additional paid-in capital |
4,098,089 | 3,340,470 | ||||||||||||||
Distributions in excess of net income |
(1,082,458 | ) | (1,142,895 | ) | ||||||||||||
Accumulated other comprehensive loss, net |
(13,073 | ) | (13,902 | ) | ||||||||||||
|
||||||||||||||||
Total stockholders equity |
3,051,630 | 2,314,050 | ||||||||||||||
Non-controlling interest |
3,991 | 4,734 | ||||||||||||||
Total equity |
3,055,621 | 2,318,784 | ||||||||||||||
Total liabilities and stockholders equity |
$ | 6,910,902 | $ | 6,721,354 | ||||||||||||
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Attachment 12
UDR, Inc.
Defined Terms
September 30, 2012
Definitions | ||
Funds from Operations (FFO) | 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. The Company 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 the Companys activities in accordance with generally accepted accounting principles and is not necessarily indicative of cash available to fund cash needs. |
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RE3 | a taxable REIT subsidiary (TRS) that focuses on development, land entitlement and short-term hold investments. 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. The Company considers FFO with RE3 gain on sales, net of taxes, to be a meaningful supplemental measure of performance because the short-term use of funds produces a profit which differs from the traditional long-term investment in real estate for REITs. |
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Same-Store (SS) | includes those communities acquired, developed, and stabilized prior to July 1, 2011 and held as of September 30, 2012. These communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior year, 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. |
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Net Operating Income (NOI) | defined as rental income less direct property rental expenses. Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. 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. Management views NOI as a useful metric for investors as it is a more meaningful representation of a communitys continuing operating performance than net income given that it is absent corporate-level expense allocations, general and administrative costs, capital structure and depreciation and amortization and is a widely used input, along with capitalization rates, in the determination of real estate valuations. |
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Total Income per Occupied Home | represents total residential revenues divided by the product of occupancy and the number of mature apartment homes. |
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Acquired Communities | consist of all multifamily properties acquired by the Company, other than through development activity, that are not included in Same-Store Communities. |
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Redevelopment Communities | consist of properties where greater than 10% of available apartment homes are off-line for major renovation. |
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Development Communities | consist of all multifamily properties recently developed or under development by the Company, and which are currently majority owned by the Company and had not achieved stabilization at least one year prior to the beginning of the most recent quarter. |
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Commercial/Retail and Other | consist of the non-apartment components of mixed use properties and properties being prepared for redevelopment and where a material change in home count has occurred. |
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Sold Communities | consist of properties sold prior to September 30, 2012. |
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Stabilization | occurs with the initial achievement of 90% occupancy for at least three consecutive months. |
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Physical Occupancy | represents the number of occupied homes divided by the total homes available for a property. |
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Return on Invested Capital (ROIC) | represents the referenced quarters NOI, annualized, divided by the average of beginning and ending invested capital for the quarter. |
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Other Properties | includes joint venture properties, properties being prepared for redevelopment and where a material change in home count has occurred, and the non-apartment components of mixed use properties. |
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Interest Coverage Ratio | net income, less interest expense, real estate depreciation and amortization of wholly owned and joint venture communities, other depreciation and amortization, minority interests, net gain on the sale of depreciable property, excluding RE3 and income tax, divided by total interest. |
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Fixed Charge Coverage Ratio | net income, less interest expense, real estate depreciation and amortization of wholly owned and other joint venture communities, other depreciation and amortization, minority interests, net gain on the sale of depreciable property, excluding RE3 and income tax, divided by total interest plus preferred dividends. |
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Estimated Completion Date | the date on which construction is expected to be completed, but does not represent the date of stabilization. |
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Date of Initial Stabilized Operations | initial quarter when operations stabilize. Development stabilized yield is based on forward 12 month NOI projection from this date divided by estimated construction cost. |