Udr, Inc. · NYSE:UDR
Udr — United Dominion Realty Trust — Citigroup CEO Conference March 2006
30 slides from Udr's conference presentation, Mar 6, 2006
Slide 1: UDR | United Dominion Realty Trust - Citigroup CEO Conference March 2006
UDR | United Dominion Realty Trust Cn Citigroup CEO Conference March 2006
Slide 2: Safe Harbor Statement
Statements contained in this presentation, which are not historical facts, are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the Company's use of words such as, "expects," "plans," "est
Slide 3: UDR Overview
4th Largest Apartment REIT Approximately 75,000 apartment homes $7.2 billion total market cap Portfolio repositioned to capture job and demographic trends Proven Record of Delivering Shareholder Return: 1 Year: 27% 2 Years: 25% 5 Years: 25% 10 Years: 14% 30 consecutive years of dividend increases Co
Slide 4: Executing A 3-Pronged Approach To Grow FFO And Create Value
UDR Overview We Are Executing A 3-Pronged Approach To Grow FFO And Create Value TODAY
Slide 5: Value Creation Highlights - 2005
UDR - Overview Value Creation Highlights - 2005 Operations Best same store operating performance in over 5 years Q4 Full Year Occupancy: 94.7% 94.6% Revenue Growth: 5.2% 3.8% NOI Growth: 3.9% 3.4% Momentum accelerating in 2006 Asset Enhancement Completed 5,400 kitchen and bath upgrades Completed 686
Slide 6: Value Creation Highlights - 2006
UDR - Overview Value Creation Highlights - 2006 Operations Potential FFO/Share Rent - $25 to $30/month increase: $0.11 to 0.14 Reimbursements - improve by 5% 0.01 Occupancy - 40 bps increase: 0.02 Expense - 3% to 5% growth: (0.05) to (0.08) Asset Enhancement Estimate $150 million work to be contract
Slide 7: Our Holdings as of December 2005
Our Holdings as of December 2005 UDR - Operations Top States for 2006 Projected Net Operating Income California: 25% Florida: 15% Metro D.C.: 15% Texas: 12% North Carolina: 12%
Slide 8: Strong Trend in Revenue Per Home
Strong Trend in Revenue Per Home UDR - Operations Source: Company Reports, Green Street Advisors *Includes Non-Mature Communities * Guidance Range *
Slide 9: Strong Operating Trends
UDR - Operations Strong Operating Trends * Guidance Range
Slide 10: 2006 Guidance
UDR - Operations 2006 Guidance * Amounts based on 2006 same store properties
Slide 11: Managing Utility Expense
* Includes vacant gas/electicity UDR - Operations Managing Utility Expense 2006 Increase: 6% to 7% Utility expense components: 2005 % of Total Water/Sewer: $21.5M 55% Electricity*: 10.8 27% Natural Gas*: 6.8 17% Other Utilities/Propane: 0.4 1% Total $39.5M 100% Recoup 55% of utility expense Opportun
Slide 12: 2006 Peer Company Guidance at Midpoint
UDR - Operations 2006 Peer Company Guidance at Midpoint Source: SNL UDR Guidance is in line with peers, but we trade at a 20% discount to the peer average
Slide 13: Asset Enhancement Dollars Invested Translate to Higher NAV
UDR - Asset Enhancement Dollars Invested Translate to Higher NAV Expected Returns: 8% to 10% for Kitchen & Bath Rehabs 7% to 8% for Developments
Slide 14: Kitchen/Bath Program
Kitchen/Bath Program Before After UDR - Asset Enhancement Legacy at Mayland - Richmond, VA Upgraded Appliances, Cabinets, Lighting, Flooring, Etc. Targeting 8% to 10% Stabilized ROI 9,500 Completed; > 20,000 in Pipeline Create $1.50 in Shareholder Value for $1.00 Invested
Slide 15: Kitchen/Bath Program - Legacy at Mayland
Kitchen/Bath Program Before After UDR - Asset Enhancement Legacy at Mayland - Richmond, VA
Slide 16: Full Scope Rehabs
Full Scope Rehabs Before After UDR - Asset Enhancement Legacy at Mayland - Richmond, VA Reinvest with Exterior Upgrades and Interior Renovations 7 Communities Underway, 2,818 Homes Targeting 8% to 10% Stabilized ROI 7,000 Homes Under Study
Slide 17: Asset Quality - Rehabs
Asset Quality - Rehabs Before After UDR - Asset Enhancement Legacy at Mayland - Richmond, VA
Slide 18: Full Scope Rehabs - Parkers Landing
Before After UDR - Asset Enhancement Parkers Landing - Tampa, FL Full Scope Rehabs Upgraded Landscaping, Exterior Design, Aesthetic Effects, Interior Renovation Targeting 8% to 10% Stabilized ROI
Slide 19: Asset Quality - Rehabs
Before After UDR - Asset Enhancement Parkers Landing - Tampa, FL Asset Quality - Rehabs
Slide 20: Acquisitions
Acquisitions UDR - Market Cycle Investments * Property is adjacent to UDR community and will undergo rehab 2005 Acquisitions 2006 Acquisitions
Slide 21: Dispositions
Dispositions * UDR owned 20% of Joint Venture UDR - Market Cycle Investments 2005 Dispositions 2006 Dispositions Actively marketing communities in North Carolina, Tennessee, others
Slide 22: Developments - Over 2,200 Homes in Pipeline
Developments - Over 2,200 Homes in Pipeline UDR - Market Cycle Investments Land in Inventory to Build 1,675 Homes
Slide 23: Developments - Joint Venture
Developments - Joint Venture UDR - Market Cycle Investments UDR - Market Cycle Investments JPI - National Apartment Developer Negotiated new development in Marina Del Rey, CA 298 homes $130 million budget $435,000 cost per home 6% to 6.5% return as apartment homes
Slide 24: Condo Activity
Condo Activity UDR - Market Cycle Investments Ancillary business opportunity that will produce $2.5 million to $5.0 million of FFO per quarter for several years Gives UDR the ability to create value and reduce exposure to tertiary and secondary markets and one off assets at attractive after tax cap
Slide 25: Condo Activity - 2006 Activity and Future Pipeline
Condo Activity UDR - Market Cycle Investments 2006 Activity Future Pipeline
Slide 26: Strong Balance Sheet
*Dollars in millions except Share Price Strong Balance Sheet GAAP Maturities as % of Total Debt UDR - Market Cycle Investments Average Interest Rate on Debt Maturing: 6.7% for 2006
Slide 27: Recent Equity and Debt Activity
Recent Equity and Debt Activity UDR - Market Cycle Investments Share Repurchase Repurchased 3.2 million shares at average price of $23.03 in Q4 Board authorized new 10 million share repurchase program in February Dividend Board authorized 4.2% increase in February, the 30th consecutive annual increa
Slide 28: UDR - Summary 2006 Guidance
UDR - Sumi 2006 Guidance Per Share 2005 FFO $ 1.61 2006 Items Mid-Point of Range Same Store NOI Growth $ 0.09 2004 Acquisitions 0.05 Developments 0.02 Reduced Share Count 0.03 Interest Expense (0.03) G&A Growth (0.01) Lost NOI on Repositioning (0.05) Non-Recurting Rent.com, Insurance (0.03) 0.07 200
Slide 29: Compelling Value Creation Strategy
Compelling Value Creation Strategy UDR - Summary Strong Operator Delivering Stable, Predictable Returns Committed to Asset Enhancement Asset quality investments $150 investment in 2006 Achieving 8% to 10% ROI NAV creation - $1.50 increase in real estate value per $1 invested Focused on Value Creatio
Slide 30: Definitions
Definitions Funds From Operations (FFO) - The National Association of Real Estate Investment Trusts ("NAREIT") defines funds from operations ("FFO") (April 2002 White Paper) as net income (computed in accordance with accounting principles generally accepted in the United States (GAAP)), excluding ga
United Dominion Realty Trust — Citigroup CEO Conference March 2006 on 6ix