Udr, Inc. · NYSE:UDR
Udr — United Dominion Realty Trust — Merrill Lynch Florida Property Tour 2006
24 slides from Udr's conference presentation, Nov 15, 2006
Slide 1: UDR | United Dominion Realty Trust: Merrill Lynch Florida Property Tour
UDR | United Dominion Realty Trust The Value of our real estate is Our Team’s Ability to Create Opportunities. Merrill Lynch Florida Property Tour November 2006
Slide 2: UDR Overview
4th Largest Apartment REIT Approximately 70,000 apartment homes $8.0 billion total market cap Portfolio positioned to capture job and demographic trends Proven Record of Delivering Shareholder Return: Year to Date: 39% 2 Years: 27% 5 Years: 24% 10 Years: 16% 30 consecutive years of dividend increase
Slide 3: Creating Value and Making Money 5 Ways
Creating Value and Making Money 5 Ways Strong Operator Delivering Stable, Predictable Returns, 6.3% YTD Same Store Sales Growth Disciplined Approach to Buying Communities Capturing Value through Sales, created by Demand for Institutional-quality Apartment in Job Growth Markets Creating Value through
Slide 4: Overview of Florida Holdings
Acquisitions have focused on well-positioned communities where UDR can add value through redevelopment opportunities and operations. 15% of UDR 2006 NOI is Expected to Come from Florida Communities Overview of Florida Holdings
Slide 5: UDR Orlando Holdings
UDR Orlando Holdings Fisherman's Village - Orlando, FL Arbors at Lee Vista - Orlando, FL
Slide 6: Arbors at Lee Vista
Arbors at Lee Vista UDR - Orlando Year Built 1991 Year Purchased 1997 Number of Homes 338 Average Monthly Market Rent per Home: $987 Cost of Alternative Housing: Median Price of Nearby Single-Family Homes: $350,000 Median Household Income of Orlando: $49,246 Home Amenities: Air Conditioning, Cable o
Slide 7: Fisherman's Village
Fisherman's Village UDR - Orlando Year Built 1984 Year Purchased 1995 Number of Homes 280 Average Monthly Market Rent per Home: $943 Cost of Alternative Housing: Median Price of Nearby Single-Family Homes: $250,000 Median Household Income of Orlando: $49,246 Home Amenities: Air Conditioning, Cable o
Slide 8: UDR Tampa Holdings
UDR Tampa Holdings Island Walk - Tampa, FL
Slide 9: Island Walk (formerly Parker's Landing) - Tampa, FL
Built in 1991, Purchased by UDR in December 1998 896 Homes Original Investment: $39.8 million ($44,420 per home) The Puzzle: Large community requires traffic of 160 each month to stay fully occupied Well located property in need of renovation Community includes Villages of Bay Port with median homes
Slide 10: Island Walk Value Creation Opportunity
54 Townhomes (new development) 176 Condos (Phase I) 400 Apartments (redeveloped) 320 Condos (Phase II) Island Walk, Tampa, FL UDR - Value Creation Initiatives Value Creation Opportunity: Townhomes: ~ $6 million Condos: ~ $20 million Redevelopment: ~ $10 million Total: ~$36 Million
Slide 11: Island Walk Full Scope Redevelopment
400 Homes Full Scope Redevelopment Modified roofline, installed architectural shingles Added columns, gables, architectural build outs Renovated kitchens and baths, removed walls Replaced windows and doors Replaced water heaters and HVAC Cash Flow Expected to Grow by 40% to Nearly $5 million Value C
Slide 12: Island Walk - Apartment Highlights
Island Walk - Apartment Highlights Neighborhood Highlights: Located on a private island with private boat docks Within 7 miles of the Tampa Airport Major employers including Verizon, Chase Manhattan, Town & Country Hospital and Lockheed Martin are located within 5 miles Located near Florida 580 and
Slide 13: Value Creation Case Study: Condo Conversion
Value Creation Case Study The Gallery at Bayport Phase I 176 homes 169 homes sold at average price of $156,400 The Gallery at Bayport Phase II 320 homes First closings expected in 2007 Value Created: $20M Island Walk - Condo Conversion Island Walk - Condo Conversion
Slide 14: Value Creation Case Study: Town Homes
Value Creation Case Study 54 Town Homes Expected Sales Price: $400,000 per Home First Closings Expected in 2007/2008 Value Created: > $6 million Island Walk - Town Homes
Slide 15: Redevelopment
Reinvest with Exterior Upgrades and Interior Renovations 14 Communities Underway 4,635 homes 1,601 homes in Florida Targeting 8% to 10% Stabilized ROI 2,285 Homes Under Study Redevelopment UDR - Value Creation Initiatives
Slide 16: Development Presale - The Place at Millenia
Development Presale - The Place at Millenia Orlando, Florida 371 Homes $53 million Budget Expected returns of 7.0% to 7.5% Expected completion date: 3Q07 Estimated $10 million Value Created Other Value Creation Initiatives
Slide 17: Altamira Place Redevelopment
Built in 1984, Purchased by UDR in April 1994 360 Homes Full Scope Redevelopment Approaching Completion 57% Growth in Cash Flow to Nearly $2.3 million 7% - 8% Cash on Cash Return Value Created: ~ $13 million After Before Redevelopment Altamira Place - Altamonte Springs, FL Other Value Creation Initi
Slide 18: Dover Village Redevelopment
Built in 1981, Purchased by UDR in March 1993. 296 Homes Full Scope Redevelopment Expected Completion 4Q07 Project Benefits: 57% Growth in Cash Flow to $2.6 million 6% - 7% Cash on Cash Return ~ $10 million Value Created After Before Redevelopment Dover Village - Orlando, FL Dover Village - Orlando,
Slide 19: Redevelopment - Kitchen/Bath Program
Redevelopment - Kitchen/Bath Program After Before Remington on the Green - Raleigh, NC Goals of K/B Program Increase NAV Low-Risk Redevelopment Attract Higher-Grade Resident Higher rent Better care of asset Neighborhood quality Flexibility/Modernization Standardization ? Lower cost maintenance Other
Slide 20: Redevelopment - Kitchen/Bath Program Results
Before After Providence Court - Charlotte, NC Redevelopment - Kitchen/Bath Program Other Value Creation Initiatives Upgraded Appliances, Cabinets, Lighting, Flooring, Etc. Targeting 8% to 10% Stabilized ROI 14,000 Completed; > 20,000 in Pipeline Rent Increase Examples: Before After So. California $1
Slide 21: Kitchen/Bath Program: How We Are Doing It Better
After Before Legacy at Mayland - Richmond, VA How We Are Doing It Better? Complexity of execution Cross department cohesion Start with good location Cutting edge design Better cabinets Granite Stainless Steel New lighting Flexibility/adaptation Reconfiguration/modernization Flexible resource allocat
Slide 22: Condo Conversion Summary
Opportunity to Create Value and Reduce Exposure in Selected Markets at Attractive After-Tax Cap Rates Extensive Pipeline (over 15,000 homes) to Feed the Business for Many Years Condo Conversion Summary date Other Value Creation Initiatives
Slide 23: 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
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