Udr, Inc. · NYSE:UDR
Udr — United Dominion Realty Trust — Morgan Stanley Southern California Property Tour March 2006
28 slides from Udr's conference presentation, Mar 22, 2006
Slide 1: UDR Morgan Stanley Southern California Property Tour 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: Outline
Today's Hosts: Jerry Davis, VP Operations, West Rusty Ross, VP Development Larry Thede, VP Investor Relations Economic Overview of Southern California Overview of California Holdings Value Creation Through: Operations Rehabs Development Density Opportunity Property and Market Tour of Newport Beach/C
Slide 4: Southern California Economic Overview: Rental Demand and Supply
High Rental Demand 43% of Population Rents Low Housing Affordability (1) 11/04 11/05 United States 55% 48% State of California 19% 14% Low Vacancy Typically below national average for past 20 years Supply Constraints Limited number of new multifamily units coming online Employment Growth Well above
Slide 5: Overview of California Holdings
Overview of California Holdings Acquisitions have focused on well-positioned communities where UDR can add value through rehab opportunities and operations. 25% of Company 2006 NOI is Expected to Come from California Communities = UDR Communities
Slide 6: Holdings
Overview of Southern California Holdings * Average asking rents. Villas at Carlsbad
Slide 7: Essex Portfolio Acquisition, September 2004
16 garden-style communities 4,646 homes Purchase price: $755 million Current market value: $925 million Condo/density/Etc. market value: $1.10 billion Cap rate at purchase: 5.5% Realized cap rate: 6.1% Cost per home: $162,721 Current value per home: $198,900 Condo/density/etc. value per home: $238,0
Slide 8: UDR's Presence in So. California
UDR's Presence in So. California Assets: 26 communities 7,017 Homes 16.6% of UDR 2006 NOI Occupancy: 94% vs. 93% last year Average Rents: $1,334, up 8.8% vs. last year Unit Mix: Number Avg. Sq. Ft. Studios - 601 (9%) 430 1 Bedrooms - 2,556 (36%) 720 2 Bedrooms - 3,576 (51%) 975 3 & 4 Bedrooms - 284
Slide 9: Market Overview
Market Overview UDR has continued to grow its percentage of NOI in Southern California Markets: Economic Overview of Southern California
Slide 10: Orange County Area Communities
Orange County Area Communities Villa Venetia - Costa Mesa, CA Coronado North - Newport Beach, CA Coronado South - Newport Beach, CA
Slide 11: UDR's Presence in Orange County
UDR's Presence in Orange County 13 Properties totaling 4,066 units Occupancy: 94.9% vs. 93.4% last year Average Rents: $1,401, up 10% vs. last year Unit Mix: Number Avg. Sq. Ft. Studios - 571 (14%) 425 1 Bedrooms - 1,606 (40%) 715 2 Bedrooms - 1,724 (42%) 1,015 3 Bedrooms - 165 (4%) 1,340 Total 4,06
Slide 12: UDR - Value Creation (Short Term)
UDR - Value Creation Operations 2005 2006 Same Store NOI Growth 3.4% 3.7% to 6.4% Asset Enhancement - Southern California Kitchen & Bath Program 2006 2007 Number (estimate) 1,100 2,100 Development - Southern California 414 homes, Rancho Cucamonga, 2Q06 completion 298 homes, Marina Del Rey, 4Q06 star
Slide 13: UDR - Value Creation (Long Term)
UDR - Value Creation Operations NOI growth consistently above average Asset Enhancement Kitchen & bath program: 9,500 completed - >20,000 in pipeline (company wide) Rehab program: 2,818 homes underway - 7,000 under study (company wide) Condo Pipeline 923 active/approved homes 2,361 homes in future p
Slide 14: JPI - National Apartment Developer, Marina Del Rey
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 Developments - Joint Venture UDR - Value Creation UDR - Value Creation
Slide 15: Coronado North - Newport Beach, CA
Coronado North - Newport Beach, CA Number of Apartment Homes: 732 Community Director: Lisa Perry Service Manager: Ivo Ynguanzo Average Asking Rents: $1,050 - $1,920 (studio - two bedroom) Community Overview Coronado North's location along Irvine Avenue puts the community minutes from one of Southern
Slide 16: Coronado North Current and Planned Renovations
Kitchen and bath renovation in process Exploring additional interior upgrades (Crown molding, two-tone paint, 6-panel doors etc..) Add "card" access to amenities Upgrade business center to include Wi/Fi access for clubhouse and pool area Renovate hallways to include painting, carpeting, doors, hardw
Slide 17: Coronado South - Newport Beach, CA
Number of Apartment Homes: 715 Community Director: Susan Gonnell Service Manager: Gilbert Darling Average Asking Rents: $1,050 - $1,825 (studio - two bedroom) Coronado South - Newport Beach, CA Community Overview Coronado South is minutes from one of Southern California's popular beaches, several bu
Slide 18: Coronado South Current and Planned Renovations
Kitchen and bath renovation in process Exploring additional interior upgrades (Crown molding, two-tone paint, 6-panel doors etc..) Add "card" access to amenities Renovate existing theater room, similar to Coronado North Upgrade business center to include Wi/Fi access for clubhouse and pool area Comp
Slide 19: Villa Venetia - Costa Mesa, CA
Number of Apartment Homes: 468 Community Director: Elizabeth Lopez Service Manager: Mike Taylor Average Asking Rents: $1,120 - $2,750 Villa Venetia - Costa Mesa, CA Community Overview The Villa Venetia is located near the finest of Orange County's retail, dining and entertainment options as well as
Slide 20: Villa Venetia Current and Planned Renovations
Current and Planned Renovations Villa Venetia - Costa Mesa, CA Kitchen and bath renovation in process Add "card" access to amenities Expand business center to allow for separate conference area and computer usage Add store front glass between game room and office to allow resident usage during busin
Slide 21: Appendix
Appendix Appendix
Slide 22: Why is it Hot? - High Rental Demand
According to the most recent census conducted in 2000, the state of California estimates that approximately 43% of its population lives in rental housing due to the high costs associated with owning housing in California. Why is it Hot? - High Rental Demand Economic Overview of Southern California
Slide 23: Housing Affordability
California has one of the lowest housing affordability percentages in the country Why is it Hot? - High Rental Demand Economic Overview of Southern California United States 55% 48% State of California 19% 14% CA - Condos 27% 21% LA County 17% 11% Inland Empire 19% 18% Orange County 13% 11% San Diego
Slide 24: Rising Price of Single Family Homes in California
The chart below illustrates the rising price of single family homes in California. Why is it Hot? - High Rental Demand Economic Overview of Southern California
Slide 25: Why is it Hot? - Low Vacancy Rates
During the last 20 years, Southern California vacancy rates typically have been below the national average Economic Overview of Southern California Why is it Hot? - Low Vacancy Rates Overall Vacancy Rates Rest of Country Los Angeles County Orange County Inland Empire San Diego County 1981 1982 1983
Slide 26: Will it Stay Hot? - Employment Growth
Across Southern California, employment growth is above the national average of 1.1%. Employment growth in the region should range from 1.1% to 3.5% annually. Economic Overview of Southern California Will it Stay Hot? - YES...Employment Growth Year-Over-Year Employment Growth Rest of Country Los Ange
Slide 27: OC Population and Employment Growth
OC Population and Employment Growth Source: Hendricks & Partners 2004 & 3Q 2005 Economic Overview of Southern California Will it Stay Hot? - YES...Employment Growth
Slide 28: Will it Stay Hot? - Supply Constraints
Supply remains constrained Economic Overview of Southern California Will it Stay Hot? -YES... Supply Constraints Rest of Country Los Angeles County Orange County Inland Empire San Diego County 1981 0.02 1982 0.025 1983 0.04 1984 0.035 1985 0.031 0.024 0.0374 0.1381 0.0932 1986 0.025 0.0367 0.0517 0.
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