Udr, Inc. · NYSE:UDR
Udr — NAREIT - November 2009
19 slides from Udr's conference presentation, Nov 10, 2009
Slide 1: NAREIT - November 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 NAREIT - November 2009
Slide 2: UDR Overview
2 UDR Overview National portfolio of high quality, well leased multifamily assets Concentrated in markets with low single- family home affordability and job growth ahead of national average 45,249 homes in 162 communities Average age: 16 years YTD average monthly income per home: $1,157 compared to
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 Coronado at Newport
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: Strategically Located in Low Home Affordability Markets
5 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 22% below the average monthly mortgage payment for our markets House prices could fall by 25% or interest rat
Slide 6: Operational Excellence Continued: YTD Outperformance Versus Peer Group
6 Operational Excellence Continued YTD Outperformance Versus Peer Group Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 UDR Revenue Growth 0.046 0.053 0.052 0.047 0.05 0.044 0.034 0.018 0.004 -0.009 -0.03 Peer Revenue Growth 0.054 0.051 0.043 0.041 0.038 0.033 0.029 0.019 -0.002 -0.022 -0.038
Slide 7: Levering Technology to Enhance Business Model: Increase Channels of Distribution
7 Levering Technology to Enhance Business Model Increase Channels of Distribution Social media: Facebook, Twitter, Flickr, YouTube Mobile user (iPhone, Android, and PalmPre) Apartment search and augmented reality apps Spanish language website Quick response 2D bar code Top rated website Achieved 1 m
Slide 8: Levering Technology to Enhance Business Model
8 Levering Technology to Enhance Business Model Leads to expanded operating margins Creates value when acquiring communities from inferior operators with lower margins Allows for improved community staffing to better meet customer demands Multi-site sales teams Customer kiosks 24 - 7 "office hours"
Slide 9: Early Adopter of Technology Solutions
9 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. January February March April May June July August September East 0.029 0.0701 0.1531 0.2302 0.3308 0.3834 0.4228 0.4684 0.5264 20
Slide 10: Transformational Redevelopment Capability
We have created value through redeveloping 4,108 homes, with incremental investment of $173M Transformational Redevelopment Capability Targeting "Forever Great" and Emerging Locations Positive neighborhood trends Proximity to quality employment Convenient to retail, recreation, and transportation hu
Slide 11: Development: $370 Million of Projects in Process
Development $370 Million of Projects in Process Meaningfully contributes to NOI in 2H 2010 and 2011 Applying for LEED certifications on 6 developments in process ranging from silver to first platinum rating for a multifamily project No new development starts until market conditions improve Will cont
Slide 12: Access to Multiple Sources of Capital
12 Access to Multiple Sources of Capital And the Option of: Untapped liquidity from $213M unencumbered NOI that has a cost basis of $3.2B Access to secured debt from Fannie Mae and Freddie Mac Asset sales Equity issuance Recent Initiatives $450M joint venture with Kuwait Finance House $37 million bo
Slide 13: Balance Sheet: Liquidity in Excess of Needs Through 2011
13 Balance Sheet Liquidity in Excess of Needs Through 2011 Total Cash and Credit Capacity $1,029.5M $1,029.5M 2009 Debt Maturities -M -M 2010 Debt Maturities 2010 Debt Maturities (357.5)r 2011 Debt Maturities 2011 Debt Maturities (536.1)r 2009 and 2010 Construction Funding 2009 and 2010 Construction
Slide 14: Debt Maturities as of September 30, 2009
14 Debt Maturities as of September 30, 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Thereafter Fannie Mae Facilities - - 50 175 35 - - 40 305 225 293 Medium Term Notes - 50 - 100 123 313 175 83 - - 16 Mortgage - 68 69 67 37 66 18 63 71 - - Convertible Notes - - 288 - - - - - - - - Construc
Slide 15: Updated Guidance
15 Updated Guidance Low High Original 2009 FFO Guidance per Share $1.23) $1.35) Income Tax Benefit (0.04) (0.04) Debt Tender Offer - $35M of 2014 8.5% Issuance (0.02) (0.02) Equity Loss on Unconsolidated JV (0.10) (0.10) Change in Forecasted Debt Repurchases 0.05) (0.01) Better Than Originally Forec
Slide 16: 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 17: 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
Slide 18: FFO Guidance Reconciliation per Share
18 FFO Guidance Reconciliation per Share Low High Implied Q4 2009 Net (Loss)/Income Attributable to UDR, Inc. ($0.23) ($0.20) Conversion to GAAP Share Count 0.02 0.02 Real Estate Depreciation and Amortization 0.44 0.44 Non-Controlling Interest 0.01 0.01 Distribution to Preferred Stockholders 0.01 0.
Slide 19: Notes
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