Udr, Inc. · NYSE:UDR
Udr — Investor Presentation (June 2015)
36 slides from Udr's investor presentation, Jun 9, 2015
Slide 1: Investor Presentation June 2015
Opening doors to the future’ Exhibit 99.1 Investor Presentation June 2015 Pact Gy” Huntngion Bgeeh, CA 2015 Development Star UDR, Inc. (NYSE: UDR), has a demonstrated history of successfully managing, buying, selling, developing and redeveloping attractive real estate properties in primary U.S. mark
Slide 2: Table of Contents
oors to the future TABLE OF CONTENTS and Funding Cash Flow, Dividend and NAV Gro 2015 Guidance Operating Trends Update 2015 Market Growth Expectations Apartment Fundamental Definitions and Reconciliations ‘95 Wall - New York, NY. ‘Wholly-Own
Slide 3: About UDR, Inc.
ABOUT UDR, INC. 3 UDR STATS () * Established in 1972 * 22 Markets * 171 Communities * 48,086 Homes * Same-Store Revenue per Occupied Home: $1,659 * Total Portfolio Revenue per Occupied Home: $1,836 + Average Age of Communities: 17 years * Approximately 45% / 55% A / B Property Quality and 35% / 65%
Slide 4: Recent Highlights
RECENT HIGHLIGHTS ‘ ™ Beach and Ocean = eee A ‘Whally-Owned GENERATED STRONG FIRST QUARTER 2015 SAME-STORE RESULTS 1.2015 SS Revenue Growth: 5.1% versus 4.2% for the multifamily peer REIT average + 1.2015 SS NOI Growth: 6.2% versus 5.2% for the multifamily peer REIT average 9g) INCREASED FULL-YEAR 2
Slide 5: Strategic Objectives - Overview
STRATEGIC OBJECTIVES - OVERVIEW 5 We remain focused on executing UDR’s long-term strategic objectives that will continue to generate safe, consistent cash flow growth and optimize shareholder value 1 | Drive organic growth / | 2 | Allocate capital to 1 expand margins and 2 accretive opportunities, i
Slide 6: Operations
OPERATIONS Drive organic growth and improve resident / associate satisfaction through our best-in-class operating platform
Slide 7: Operational Excellence
OPERATIONAL EXCELLENCE Our best-in-class operating platform is a competitive advantage that differentiates UDR and continues to generate strong results versus peers ACCELERATING NEW LEASE AND RENEWAL GROWTH YTD... Effective YOY SS New Lease Rate Growth January February March April May 3.5% 4.1% 5.0%
Slide 8: Operations - Operating Initiatives
OPERATIONS — OPERATING INITIATIVES 8 Operating efficiencies that boost revenue growth or reduce expense growth are in UDR’s DNA. The potential bottom-line impact from some of our current operating initiatives is quantified below 1 REDUCE DAYS VACANT + 5 days recovered since 2012 POTENTIAL IMPACT OF
Slide 9: Capital Allocation
YY YY 6 YY Bi a m a a on a a oer ite ou F i t CAPITAL ALLOCATION Allocate capital to accretive growth opportunities that strengthen our market mix, portfolio quality and growth rate
Slide 10: Capital Allocation - Development
CAPITAL ALLOCATION - DEVELOPMENT © UNDERWAY AND COMPLETED, NON-STABILIZED DEVELOPMENT — 3/31/2015 * Size: 2,047 homes at 100% * Cost: $729M, $513K per home at 100% * Spent to Date: $512M (~70% of total cost) * Wtd. avg. yield vs. cap rate spread of 150- 200 bps 3@ Seattle = LS 1 land parcel ? _ San
Slide 11: Capital Allocation - Value Creation
CAPITAL ALLOCATION — VALUE CREATION ™ Development remains our most attractive capital allocation opportunity Targeted Average Initial Returns Available to UDR 2% 3% 4% % 6% 7% Cash flow/sh and NAV/sh growth are expected to remain strong as developments stabilize Under Construction Developments — $54
Slide 12: Development Progress
DEVELOPMENT PROGRESS PROGRESS OF DEVELOPMENT PROJE! + In aggregate, our pipeline’s weighted a’ stabilized yields and current cap rates i: CTS erage spread between estimated is between 210 to 215 basis points, above the high-end of our 150 to 200 basis point targeted range Project @ Under Constructio
Slide 13: UDR's Developments
UDR’S DEVELOPMENTS Some of our recent developments are presented below STABILIZED, NON-MATURE DEVELOPMENTS
Slide 14: West Coast Development JV
WEST COAST DEVELOPMENT JV “ ‘UDR RECENTLY INVESTED $136 MILLION FOR A 48% rene IN A PORTFOLIO OF FIVE) COMMUNITIES UNDER CONSTRUCTION. THE TRANSACTION CLOSED IN MAY 2015 AND IS BENEFICIAL IN NUMEROUS WAYS: + 6.5% preferred return — Immediately accretive to FFO per share (0.01 per year) . vole earnin
Slide 15: West Coast Development JV
WEST COAST DEVELOPMENT JV The West Coast JV developments are presented below UNDER CONSTRUCTION DEVELOPMENTS
Slide 16: Joint Ventures
JOINT VENTURES ag Provide a stable source of favorably priced, long-term capital Reduce effective cost of capital while enhancing returns via promotes and fee income UNCONSOLIDATED JV MetLife Long-term partnership in high-quality, core assets Operating 399 Fremont - San Fran.; Residences at 2801 Kel
Slide 17: Balance Sheet
BALANCE SHEET Maintain a strong and flexible Balance Sheet while seeking to further improve our metrics over time
Slide 18: Balance Sheet and Funding Sources
BALANCE SHEET AND FUNDING SOURCES * By year-end 2016, we expect to achieve our target leverage profile... METRIC YE 2014A YE 2015E YE 2016E Debt-to-assets 38.6% 36% to 38% 34% to 36% Net debt-to-EBITDA 6.5x 5.8x to 6.2x 5.4x to 5.8x Fixed Charge Coverage 3.6x 3.6x to 4.0x 3.8x to 4.2x ..as we also c
Slide 19: Cash Flow, Dividend and NAV Growth
pa ay 5 CASH FLOW, DIVIDEND AND NAV GROWTH Generate high-quality Cash flow growth to drive dividend and NAV per share growth
Slide 20: Cash Flow, Dividend & NAV Growth
CASH FLOW, DIVIDEND & NAV GROWTH » After strong AFFO/sh growth in 2014, solid operating results and earn-in offset by reloading the dev. pipeline) are driving ‘cash flow, dividend and NAV growth in 2015 AFFO/sh Growth () NAV/sh Growth ®) 12% 12% 8-10% 8-10% 10% 10% 10% —_ _ ft 7 8% | 8% 6% = 4% + UD
Slide 21: 2015 Guidance
2015 GUIDANCE a! at Shirlington ~ Washington, DG = Wholly- Owned EARNINGS PER SHARE GUIDANCE | 2Q2015E | FULL-YEAR 2015E FFO per common share $0.39 to $0.41 $1.63 to $1.67 FFO as Adjusted per common share $0.39 to $0.41 $1.61 to $1.65 Adjusted Funds from Operations (“AFFO”) $0.34 to $0.36 $1.44 to $
Slide 22: Operating Trends Update
OPERATING TRENDS UPDATE “) » Effective YOY SS New Lease Rate Growth ir QTD 2q150) New York 13.1% 8.4% 7.9% 3.1% 7.1% 6.1% 36.6% 40.0% Orange County 13.0% © 12.4% | 5.7% (05)% | 7.2% 4.3% | 53.0% 55.2% Washington,DC 12.5% 13.9% | 3.1% (1.79% | 45% 3.4% | 37.6% 38.3% ee Bay a17% 111% | 144% 9.7% | 102
Slide 23: 2015 Market Growth Expectations
2015 MARKET GROWTH EXPECTATIONS z % of SS Nt 1% Cae eer ORES UDR Same-Store Markets NOaneat _ Revenue Growth %of SS NOK: 13% — % of Total NOI: 19% Reps - A, 9 Mid-Atlantic x se SS NOI: 24%, 21% © > 4.75% Revenue Growth © 4.25% to 4.75% Revenue Growth Southwest: @ << 4.25% Revenue Growth % of SS NOI:
Slide 24: Apartment Fundamentals
San Diege, CA Uppete Jin ven a APARTMENT FUNDAMENTALS
Slide 25: Apartment Fundamentals (Demand)
APARTMENT FUNDAMENTALS (DEMAND) 2s DEMOGRAPHIC TRENDS SIGNAL CONTINUED AND SUSTAINABLE DEMAND FOR RENTAL HOUSING 22-35 Year Old Population (IM) 22-35 year olds comprise the : : 64 primary renter cohort with a 60%+ i 4 propensity to rent. This cohort is forecast to grow through 2025 10 @ ‘SE '20E '25
Slide 26: Apartment Fundamentals (MF Supply)
APARTMENT FUNDAMENTALS (MF SUPPLY) * Our portfolio is well positioned when comparing expected job growth to new supply in our major markets from 2015 through 2016 16% 7 Not enough jobs to absprb = ne Sg 12m | supply”) ! San Francisco es 8 gs o% aasen Sthers.ca Los Angeles Zz& . ‘seattle National “i
Slide 27: Apartment Fundamentals (SF Housing)
APARTMENT FUNDAMENTALS (SF HOUSING) ” The homeownership rate continues to decline. Every 1% drop in the ip rate results in ( 1.1M new renters en U.S. Homeownership Rate 66.0% NNALUE ELLRANGE] 64.0% ° 62.0% 90 92,9496 98-00 02-0406 0B 1121 Still, single-family housing is recovering at a slow, measure
Slide 28: Definitions and Reconciliations
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Slide 29: Definitions and Reconciliations
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Slide 30: Definitions and Reconciliations
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Slide 31: Definitions and Reconciliations
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Slide 32: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS ® @ ‘Three Months Ended Netincome/os) terutble to UDR, Distributions to peter totes ‘eal estate dereition and amortization, inching dicontnued operations oncoming interests rlestatedereition and amortton on urconolated joint ventres Net gino onthe sl of uncnsoboteddep
Slide 33: Forward Looking Statements
FORWARD LOOKING STATEMENTS = Forward Looking Statements Certain statements made in this presentation may constitute “forward-looking statements.” ds such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “estimates” and variations of such words and similar expre
Slide 34: Notes
Slide 35: Notes
Slide 36: Investor Relations Contact
Investor Relations Contact: Shelby Noble snoble@udr.com 720.922.6082