Udr, Inc. · NYSE:UDR
Udr — Global Property CEO Conference 2008
52 slides from Udr's conference presentation, Mar 3, 2008
Slide 1: Global Property CEO Conference March 3-5, 2008
Global Property CEO Conference March 3 - 5, 2008 Topics: $1.7B Portfolio Sale - Details New UDR Portfolio Characteristics Properties Under Contract Development Redevelopment Technology 2008 Outlook
Slide 2: Transformation for Growth: Portfolio Sale
The Benefits Stronger portfolio for growth # of Homes: 44,507 Monthly Rent: $1,163 Average Age: 15 High concentration in strong markets Reduced capital requirements Captured arbitrage between public and private valuations which is positive to NAV Ability to buy back shares on accretive basis -author
Slide 3: Transformation for Growth: Stronger Portfolio for Growth
Transformation for Growth: Stronger Portfolio for Growth Average Monthly Rent* *Source: Merrill Lynch Apt. Monitor, 12/6/07 - 3Q07 **Average of Wall Street sell side estimates, 1/30/08 ***Light green area represents 2008 pro forma for new acquisitions, developments and redevelopment. Cap Rates** Old
Slide 4: Our portfolio is highly concentrated in strong markets
Our portfolio is highly concentrated in strong markets Transformation for Growth: Stronger Portfolio for Growth * Estimated 2008 Same Store NOI ** Total Portfolio excluding unconsolidated joint ventures
Slide 5: Acquisitions: $500M - $800M, $518M under Contract
Acquisitions: $500M - $800M, $518M under Contract Dulaney Crescent - Towson, MD $58M at mid to upper 5% cap rate 264 homes, $220,000 per home Built in 2003 $1,424 monthly income per home Transformation for Growth: Putting Capital to Work Circle Towers - Fairfax, VA $145M at low to mid 5% cap rate 60
Slide 6: Potential Acquisitions
Potential Acquisitions Legacy Portfolio - Plano, TX $118M at mid to upper 5% cap rate 1,043 homes, $114,000 per home Built in 2005-2007 $984 monthly income per home Edgewater - San Francisco, CA $115M at mid 4% cap rate 193 homes, $596,000 per home Built in 2007 $3,076 monthly income per home Transf
Slide 7: Transformation for Growth: Putting Capital to Work
Transformation for Growth: Putting Capital to Work Debt Payoff $200M, 41/2% medium term note due March 2008 $500M outstanding on line of credit $100M other - mortgages/unsecured bonds in secondary markets Stock Repurchase Expanded program to 22M shares Special Dividend $150M - $225M in Q4
Slide 8: Transformation for Growth: Development
The NAV and earnings impact of our development pipeline is more pronounced. Our pipeline is geographically aligned with the "New UDR." Transformation for Growth: Development 37% 3% 32% 9% 5% 14%
Slide 9: 97% of development pipeline generating NOI, under construction or in lease-up
Transformation for Growth: Development 97% of our development pipeline is either generating NOI, under construction, or in lease-up: *Contains operating properties generating NOI. The Company has discretion to commence development depending on market conditions. Targeted Returns 6.5% - 7.0% Bellevue
Slide 10: UDR Value Creation Initiatives
UDR Value Creation Initiatives Brookhaven - Addison, TX Addison: Day time population: 100,000 Night time population: 16,000 Potential to triple density to 5,000 + homes Retail, office and other zoning Demolition/Construction planned in 6 phases Phase I underway City of Addison committed $40M for inf
Slide 11: Transformation for Growth: Redevelopment
Transformation for Growth: Redevelopment After Before Reinvest with Exterior Upgrades and Interior Renovations 5 Communities Completed - 1,832 Homes 6 Communities Underway - 1,900 Homes $86M Budgeted Cost - $191M Total Investment Targeting 8% to 10% Stabilized ROI Expect 50% growth in post-renovated
Slide 12: Transformation for Growth: Technology
22% Growth Source: Neilson Net Ratings Transformation for Growth: Technology Focus on Technology to Improve Customer Service and Reduce Costs Implemented Yieldstar(r) revenue management software Redesigned website ranked number one among peers by worldwide research firm Best-in-Class features includ
Slide 13: Transformation for Growth: Operations
Transformation for Growth: Operations We outperformed the national REITs in 2007 same store comparisons and expect 2008 performance to be at the high end of peer company guidance. Excludes cable (Perfect Connection, trash collection (Valet Waste) and RUBS Includes cable (Perfect Connection, trash co
Slide 14: Transformation for Growth: 2008 Outlook
Transformation for Growth: 2008 Outlook Same store estimates High Low Revenue growth: 4.5% - 4.0% Expense growth: 3.5% - 3.0% NOI growth: 5.5% - 5.0% Occupancy: 95% - 94% Other Key Assumptions CapEx per Door $650 General & Administrative $39M - $41M Full Year 2008 FFO*: $1.50 - $1.60 Full Year 2008
Slide 15: Transformation for Growth: UDR's Strategies
Strong portfolio, focused in markets with above average job growth expectation and low affordability Excellent growth profile Development pipeline geographically aligned with operating portfolio Pursuing entitlement and short-term hold opportunities Focused operating model Improved efficiency and ef
Slide 16: Clear vision and growth strategies; Safe Harbor
We have a clear vision and the right growth strategies to deliver superior value creation Safe Harbor: 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 id
Slide 17: Highlights
Highlights Own and operate 40,000 apartment homes $6.9 billion total market cap Portfolio positioned to capture job growth and demographic trends $1.7B Portfolio Sale Expected closing: March 3, 2008 Benefits include: Strengthening the portfolio, focusing on strong markets Realizing operating efficie
Slide 18: Circle Towers and Tierra del Rey
Circle Towers Fairfax County, Virginia 606 Homes, plus 39K of retail and 17K of office $1,602 mo. rent High Rise and Garden Expected closing April '08 Built 1972 4-year multiphase renovation planned Tierra del Rey Marina Del Rey, CA 170 Homes $2,500 mo. rent Wrap and Podium Closed December '07 Built
Slide 19: Development Pipeline
Homes Budgeted Cost Wholly Owned - Completed: 486 $89,000 Under Development: 6,386 1,016,000 Under Contract - Completed: 370 53,000 Under Development: 738 102,000 Joint Ventures - Consolidated: 298 138,000 Unconsolidated: 1,006 257,000 Total Current Development: 9,284 1,655,000 Future Development -
Slide 20: Forward-looking statements
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 21: Top 10 Markets - Fact Sheets Summary
Summary This booklet highlights UDR's top 10 markets for 2008 on a pro forma basis. On January 29, 2008 we announced a transforming event for UDR, a $1.7 billion sale of 25,684 homes. Benefits of this transaction include: • Strengthening the portfolio, focusing on strong markets • Capturing arbitrag
Slide 22: Orange County market fact sheet
The Orange County, California market represents UDR's largest concentration of apartment homes as measured by NOI. These homes are in premier costal locations and many communities are just minutes from the beach. The Company is expanding its presence in this market with a new development: Foxborough
Slide 23: Orange County Portfolio
Orange County Portfolio = =e |] conn Lakewood fs) SB * Santa Ana a \ pan rr a “4007 Rent per fear Kies Physical Occupied Operating Propertios BulltRedev.__ Redeveloped ted Occupancy Home ‘Orange County 1. Harbor at Mesa Verde 2008 we 123 94% $1684 2. Pine Brook Vilage 1879 KB " 28% 41.648 3. Pacific
Slide 24: Orange County Portfolio
Orange County Portfolio Coronado North Foxborough Coronado South Villa Venetia
Slide 25: Metro D.C. Portfolio
2400 14th Street Waterside Towers II Metro D.C. Portfolio Andover House Delancey
Slide 26: Metro D.C. market fact sheet
During 2007, we acquired two communities with 669 homes and purchased land for future construction of 255 homes. Acquisitions focus on well positioned communities where we can add value through operations and redevelopment. Value Creation: In the first quarter of 2008 we will complete the full redev
Slide 27: Metro D.C. Portfolio
Metro D.C. Portfolio WASHINTON DC AREA PROPERTIES Py vr cenmetes 1 PerConmue et Metro OC 1 Dominion mide Ridge 21980 Ke am om 84207 2 Demition Lake riage iso 1887 KB ‘3 6% 125 3 Presidente Greens 18 Ke 1 2% = 4 Tayler Face Die 2008 Ful 2 m% 1383 5 Ridgerood | 1988, KiB 2st 6% 4372 © TheCabert wer (1
Slide 28: Dallas market fact sheet
The Company has demonstrated success in creating value in the Dallas market in a variety of ways: • New Development: o Construction of 202 homes at Riachi at One21 in the Dallas suburb of Plano was completed in the fourth quarter of 2007. o An assemblage of 100 acres in Addison was completed in the
Slide 29: Dallas Portfolio
Dallas Portfolio 1 DALLAS AREA PROPERTIES Number of Rent por cr Occupied HofHomes _BuillRedev.__Redeveloped Completed Home 4 Thys77 305 2007 Ke eo om 8178 Ec s ca aris Non-Mature 2. Uncoin at Towne Square 22007 Ful : 1% $127 3° Megan 52 2000 Ful Bs 95% 24 4 Addison 1727 Damoltien 26% nM 5 Clipper Po
Slide 30: Dallas Portfolio
Dallas Portfolio Lincoln at Towne Square Mustang Park Legacy Portfolio Addison
Slide 31: San Francisco Portfolio
San Francisco Portfolio 2000 Post Highlands of Marin Edgewater River Terrace
Slide 32: San Francisco/San Jose market fact sheet
San Francisco/San Jose represents the Company's fourth largest concentration of NOI. These homes are in premier locations and command monthly rents as high as $3,500. In the fourth quarter, 2007, the Company expanded its presence in this market with the purchase of 104 apartment homes in San Rafael.
Slide 33: San Francisco Portfolio
San Francisco Portfolio Fail \oseus stockton Matto. ‘SAN FRANCISCO AREA PROPERTIES Hot Homes BuiliRedev. ‘San Francisco 1 2000 Post street! 1987 Ke 178 e% 82a 2 Bich Creek 1968, g 2% ane 3. Highlands ot Marin 2008 Ke at 3% 11691 44 Marina Playa 1971 3 98% 1531 5 Crossroads Apartments 1986 Ke 102 96%
Slide 34: Tampa market fact sheet
The Tampa, St. Petersburg, Clearwater, Florida market is expected to contribute 5.2% to UDR's 2008 net operating income. The Company has demonstrated success in creating addition value from these properties in a variety of ways: Redevelopment - we recently completed full redevelopment of one communi
Slide 35: Tampa Portfolio
Tampa Portfolio TAMPA AREA PROPERTIES. Gulf of Mexico Hunters Riage Bay Meadows ‘Cambridge Woods ‘Sugar Mil Creek Inlet Bay at Gateway MacAipine Pace {sland Wak NonAMature ‘The Breyley Apartments ‘The Gallery at Bayport Total ‘As of 40 2007 Expected Return developed Completed oer 6
Slide 36: Tampa Portfolio
Tampa Portfolio Bay Meadows Island Walk Millennia Bay Meadows
Slide 37: Baltimore Portfolio
Dominion Great Oaks Baltimore Portfolio Tamar Meadow Arborview Calvert's Walk
Slide 38: Baltimore market fact sheet
The Baltimore market is expected to contribute 5.1% of the Company's 2008 net operating income. The Company has demonstrated success in creating addition value from these properties in a variety of ways: • Redevelopment - we are nearing the completion of the full redevelopment of Dominion Great Oaks
Slide 39: Baltimore Portfolio
Baltimore Portfolio Rent p Baliimore 1. Dominion Kings Pace 1903 We z 9% $1,170 2. Dominion at Eden Brock 1984 we 16 96% 4165 3. Dominion Constant Friendship 1990 Ke % 95% 11054 4 Lakeside Mi 1989 Ke ry 97% 1076 5 Tamar Meadow 1900 Ke 3 94% 188 © Cahert’s Walk 1988 Ke 208 95% 11088 7 Aibentew 1992 K
Slide 40: Orlando market fact sheet
The Orlando, Florida market is expected to contribute 4.9% to UDR's 2008 net operating income. The Company has demonstrated success in creating addition value from these properties in a variety of ways: • Redevelopment - we recently completed full redevelopment of two communities. • Kitchen and Bath
Slide 41: Orlando Portfolio
Orlando Portfolio ‘ORLANDO AREA PROPERTIES “4a07 Rent per Physical ‘Orlando 4. Seabrook 2002004 : 94% $1008 2. Regatta Shores 256 ©2007 Fu 256 91% 370 3 Alafaya Woods 296 2008, Ful 120 92% 1058 4 Los Atos 3282004 Ke 79 90% 1017 5 Lotus Landing 260 2008, KE 99 96% 269 & Sevile On The Green wo (2008 :
Slide 42: Orlando Portfolio
Orlando Portfolio Ashton at Waterford Lakes Altamira Place Arbors at Lee Vista The Canopy
Slide 43: Richmond Portfolio
Richmond Portfolio Legacy at Mayland Gayton Pointe Carriage Homes at Wyndham Waterside at Ironbridge
Slide 44: Richmond market fact sheet
The Richmond, VA market is expected to contribute 4.5% to UDR's 2008 net operating income. Apartment communities are in excellent locations and the Company has invested to modernize the homes in several ways: • Redevelopment: Two communities have been completely redeveloped and have yielded excellen
Slide 45: Richmond Portfolio
Richmond Portfolio ichmond Dominion Ode West Dominion reecvood Dominion West End Waterside at renbrdge CCamiage House at Wyrcham Legacy at Mayland Non-Mature ‘Gayien Pointe Townhomes Grand Tota! of Homes BuilVRedo. 2007 Ful 5% 262 97% 08 94% 908 91% 1349 5% 255,
Slide 46: Los Angeles market fact sheet
The Los Angeles market is expected to contribute 4.5% of the Company's 2008 net operating income. The Company is expanding its presence in this market with two new developments and one new acquisition (Tierra del Rey): • Jefferson at Marina del Rey - 298 homes at an average cost of $463,000 per home
Slide 47: Los Angeles Portfolio
Los Angeles Portfolio D be ‘Angeles Riverside yi + a Nunberot aor Rentper Year Kise Physcal Occupied Operating Properties tot tomes _ GulliRedev.Redeveloped Completed Occupancy Home Lesanseles 4 The Crest Philips Ranch so t89 Ke v ome $1980 2 Rosebeach im ter de 2 aso 2. The Vilas at San Dimas Canyo
Slide 48: Los Angeles Portfolio
Los Angeles Portfolio Pine Avenue Tierra del Rey Grandview Jefferson at Marina del Rey
Slide 49: San Diego Portfolio
San Diego Portfolio Milazzo Rancho Valecitos Summit at Mission Bay Milazzo
Slide 50: San Diego Market Fact Sheet
Market Fact Sheet San Diego Market Statistics The San Diego, California market includes 1,123 homes and is expected to account for 3.5% of 2008 pro forma net operating income. The homes are in excellent locations and recorded 5.4% NOI growth in 2007. The Company plans to completely redevelop and inc
Slide 51: San Diego Portfolio
San Diego Portfolio o SAN DIEGO. Escondido COUNTY : Julian Ramona o Pine Vatey Numberof4Q07 Rent per Year Kr Physical Occupied Operating Propertios of Homes BulllRedev.Redeveloped Completed Occupancy Home an Diego 1 Presidio at Rancho Del Oro 2. The Vilas at Carlebad 3 Summit at Mission Bay 4 Rancho
Slide 52: Transformation for Growth: UDR's Strategies
Strong portfolio, focused in markets with above average job growth expectations and low affordability Excellent growth profile Development pipeline geographically aligned with operating portfolio Pursuing entitlement and short-term hold opportunities Focused operating model Improved efficiency and e