Slide 1: September 2009
Edgewater - San Francisco, CA Residences at The Domain - Austin, TX Delancey at Shirlington - Arlington, VA 989 Elements & Elements Too - Bellevue, WA Island Square - Mercer Island, WA September 2009
Slide 2: UDR Overview
2 UDR Overview National portfolio of high quality, well leased multi-family assets Concentrated in markets with low single- family home affordability and job growth ahead of national average 44,990 Homes in 162 Communities Avg. Age: 16 years Avg. Monthly Income per Home: $1,167 compared to national
Slide 3: Why UDR?
Why UDR? Strategically Positioned in Markets with Low Single-Family Home Affordability Cycle - tested operating excellence Industry leading technology platform Transformational redevelopment capability Strong and flexible balance sheet Positively levered to the economic recovery 3
Slide 4: Consistent Execution of Core Strategy; Focused on Continued Success in Current Challenging Environment
4 Consistent Execution of Core Strategy; Focused on Continued Success in Current Challenging Environment Primary Objectives Focus on markets with strong fundamentals Above average job growth Low home affordability Recent Achievements / Current Focus Completed six year repositioning initiative totali
Slide 5: Consistent Execution of Core Strategy; Focused on Continued Success in Current Challenging Environment
5 Consistent Execution of Core Strategy; Focused on Continued Success in Current Challenging Environment Primary Objectives Recent Achievements / Current Focus Raised over $1 billion of capital from a variety of capital sources Reduced dividend to retain $79M annually Repurchased $279 MM of unsecure
Slide 6: Portfolio Strategically Located in Low Home Affordability Markets
6 Portfolio Strategically Located in Low Home Affordability Markets Completed Transformation from Commodity Markets to Protected Markets 2002 Dallas 6% Houston 6% Orlando 5% Phoenix 5% San Antonio 4% Top 5 markets = 26% of NOI Top 10 markets = 47% of NOI 71,968 Mature Apartment Homes 2009 Orange Co
Slide 7: UDR's market rents provide for above market occupancy
7 UDR's market rents provide for above market occupancy Top 11 markets generate 73% on Company NOI Top Market Quality Weighted average:
Slide 8: Strategically Located in Low Home Affordability Markets
8 Strategically Located in Low Home Affordability Markets Home Affordability Comparison Low home affordability provides room to grow rent Portfolio weighted average rental income and fees is 29% below the average monthly mortgage payment for our markets House prices could fall by 33% or interest rat
Slide 9: Operation Excellence 2009 YTD Highlights
9 Operation Excellence 2009 YTD Highlights Occupancy Increased 50bps to 95.2%, leading the peer group Operating Margin Maintained operating margin in excess of 67% for 9 of the last 10 quarters Total Revenue Per occupied home = $1,167 Held revenue decline to only .3% vs. peer average decline of 2.1%
Slide 10: Operational Excellence through Cycle
10 Operational Excellence through Cycle Last 10 Quarters-June 2009
Slide 11: Levering Technology to Enhance Business Model
11 Levering Technology to Enhance Business Model Increase Channels of Distribution iPhone, Twitter, MySpace Mobile User search capability Spanish language website Quick Response 2D Bar Code Achieved 1 million organic search engine visitors Maximize Corporate Resources ACH Payment Improve cash manage
Slide 12: Early Adopter of Technology Solutions
12 Early Adopter of Technology Solutions... And UDR residents want a solution Providing a cost effective platform to manage the needs of our existing and future residents.
Slide 13: Transformational Redevelopment Capability
We have created value through redeveloping 4,108 homes, with incremental investment of $173.4M Transformational Redevelopment Capability Targeting "Forever Great" and Emerging Locations Positive neighborhood trends Proximity to quality employment Convenient to retail, recreation, and transportation
Slide 14: Taylor Place - Arlington, VA
14 Taylor Place - Arlington, VA Lobby Area Before Redevelopment After Redevelopment Rent prior to redevelopment $1,336 Rent post redevelopment $1,688 Cost $14 Million Scope Included: Kitchens Baths Exterior Landscaping Common areas New fitness center A 26% increase in rents 218 Homes
Slide 15: Gayton Pointe Townhomes - Richmond, VA
15 Gayton Pointe Townhomes - Richmond, VA Cost $20 Million Scope Included: Kitchens Baths Exterior Landscaping Common areas Before Redevelopment After Redevelopment Rent Before Repositioning $782 Rent After Repositioning $1,278 A 64% increase in rents 253 Homes
Slide 16: Development: $450 Million of Projects in Process
Development $450 Million of Projects in Process Fully funded Meaningfully contributes to NOI in 2H 2010 and 2011 Applying for LEED certifications on 10 developments in process ranging from silver to first platinum rating for a multifamily project No new developments planned until market conditions i
Slide 17: Development Opportunities: Vitruvian Park
Development Opportunities Vitruvian Park - A Phased Development Opportunity 17
Slide 18: Strong and Flexible Balance Sheet
18 Strong and Flexible Balance Sheet Current Financials - Q2 2009 Cash and undrawn credit facilities totaling $980MM Existing debt totals $3.2B, with weighted average rate of 4.5% and 6.0 years to mature Investment grade rating from Standard & Poor's and Moody's Fixed charge coverage of 2.13x Unencu
Slide 19: Access to Multiple Sources of Capital
19 Access to Multiple Sources of Capital We have accessed a number of capital sources over the last 8 years: Common Equity: $502M Preferred: $135M Secured Debt: $1.0B Unsecured Debt: $2.3B Joint Venture Capital: $1.2B And the option of: Untapped liquidity from $227 million unencumbered NOI that has
Slide 20: Balance Sheet Capacity
20 Balance Sheet Capacity Credit Capacity well in excess of needs through 2011
Slide 21: Capital Structure and Debt Maturities
21 Capital Structure and Debt Maturities Note: Assumes all available extensions are executed. UDR's $600M line of credit matures July 2012. Current Capital Structure Manageable Debt Maturities
Slide 22: Positively Levered to the Economic Recovery
Positively Levered to the Economic Recovery Average leases of 10 months allow for adjusting cash flow as economy improves High portfolio occupancy supports rising rental rates as demand turns Technology platform designed to "talk to target market" and take market share Development pipeline meaningfu
Slide 23: Forward-Looking Statement
Forward-Looking Statement Certain statements made in this presentation may constitute "forward-looking statements." The words "expect," "intend," "believe," "anticipate," "likely," "will" and similar expressions generally identify forward-looking statements. These forward-looking statements are subj
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