Slide 1: Highlights / Fact Sheet November 2007
Highlights 3rd largest apartment REIT Approximately 70,000 apartment homes $6.7 billion total market cap Portfolio positioned to capture job growth and demographic trends Current topics Solid apartment market fundamentals Portfolio positioned to benefit from strong job growth, low housing affordabil
Slide 2: Portfolio changes, redevelopment and acquisitions/dispositions
Portfolio changes incorporate rigorous analysis to measure 2 key factors to determine when and where we invest: Low home affordability index Favorable demand/supply ratio for multi-family housing (demographic trends are favorable & job growth expectations are high) Andover Place Washington, D.C. 989
Slide 3: Total Development Pipeline at 9/30/07
Total Development Pipeline at 9/30/07 # of Homes Budgeted Cost Wholly Owned - Completed Dev. 438 $79,000 Wholly Owned - Under Dev. 6,193 988,000 Dev. In Progress - Under Contract 1,108 155,000 Dev. Joint Ventures 1,002 370,000 Total Current Dev. 8,741 1,592,000 Future Dev. - Owned 4,419 848,000 Futu
Slide 4: 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 5: Value Creation Initiatives November 2007
Value Creation Initiatives November 2007 TUDE pening doors tothe futur
Slide 6: Executive Summary UDR Development
Garden Wrap Podium Mid Rise Mixed Use High Rise Executive Summary UDR Development A National Footprint with Full Range of Product Focused on the Right Opportunity
Slide 7: Development Pipeline
Development Pipeline $1.6 Billion In Process 26 Communities 8,741 Homes $912 Million in future development 4,884 Homes Blended stabilized return: 6.5% ~ $155M stabilized NOI $217 million Budgeted 1,536 homes completed in 4 communities Average increase in rent per home: $137 or 18.5% Average incremen
Slide 8: Pipeline and Addison Development
Pipeline (as of 9/30/07) 39% 3% 31% 9% 4% 14% Addison Development We target development sites in markets where job growth expectations are high, home affordability is low, and the demand/supply ratio for multi- family housing is favorable. Our Addison, Texas development represents 31% of our total p
Slide 9: Pipeline (as of 9/30/07)
Pipeline (as of 9/30/07)
Slide 10: Bellevue, WA Joint Ventures
Bellevue, WA Joint Ventures Per M/PF Research 3Q207 Reports (West Bellevue Sub-market) YOY Rent Growth of 16.8% Average Occupancy of 96.3% 97.7% Occupancy in Product Built Since 2000 Average Monthly Rent of $1,469 per Unit Local Business News Microsoft committed to leasing 1.3M square feet of office
Slide 11: Joint Venture - 989elements, Bellevue, WA
UDR Value Creation Initiatives Joint Venture - 989elements Bellevue, WA 166 Homes High-Rise Closed Joint Venture in Jan '07 Structure: 49% UDR / 51% Su Development Managed by UDR Ground Floor Retail Total Cost of $58 million - UDR interest $28 million
Slide 12: Joint Venture - Ashwood Commons, Bellevue, WA
8 UDR Value Creation Initiatives Joint Venture - Ashwood Commons Bellevue, WA 271 Homes $97 million Budget $358,000 Cost per Home Ground Floor Retail Closed Joint Venture in 4Q06 Managed by UDR Structure: 49% UDR / 51% Su Development Expected 6.0% - 6.5% Return
Slide 13: Joint Venture - Bellevue Plaza
Bellevue Plaza Development Site UDR Value Creation Initiatives Joint Venture - Bellevue Plaza Bellevue, WA 400 Homes $135 million Budget $270,000 Cost per Home Ground Floor Retail Structure: 49% UDR/51% SU Development Expected 6.0% - 6.5% Return
Slide 14: Completed Wholly Owned Development - Verano at Town Square
UDR Value Creation Initiatives Completed Wholly Owned Development - Verano at Town Square Rancho Cucamonga, CA 414 Homes $68 million Cost $165,000 Cost per Home Expected 7.5% to 8.0% Return In Lease-Up: 96.0% Leased Estimated $38 million Value Created
Slide 15: Joint Venture - Jefferson at Marina del Rey
Joint Venture - Jefferson at Marina del Rey JPI - National Apartment Developer Negotiated new development in Marina Del Rey, CA 298 homes $138 million budget $463,000 cost per home Expected 6.0% to 6.5% Return 11 11 UDR Value Creation Initiatives
Slide 16: Future Development - Foxborough
12 UDR Value Creation Initiatives Future Development - Foxborough Orange, CA 260 Homes $77 million Budget $296,000 Cost per Home Expected 6.0% to 6.5% Return Expected Start Date: TBD
Slide 17: Future Development - Grandview
13 UDR Value Creation Initiatives Future Development - Grandview Glendale, CA 218 Homes $67 million Budget $307,000 Cost per Home Expected 6.0% to 6.5% Return Expected Start Date: 4Q07 Expected Completion: 3Q09
Slide 18: Future Development - Summit at Mission Bay
UDR Value Creation Initiatives Future Development - Summit at Mission Bay San Diego, CA 486 Homes $163 million Budget $335,000 Cost per Home Expected 5.5% to 6.0% Return Expected Start Date: 3Q08
Slide 19: Development Pre-Sale - The Waterford
UDR Value Creation Initiatives Development Pre-Sale - The Waterford Phoenix, Arizona 200 Homes $25 million Budget $125,000 Cost per Home Expected 7.0% to 7.5% Return Expected Completion: 2Q08
Slide 20: Wholly Owned Development - Stadium Village
UDR Value Creation Initiatives UDR Value Creation Initiatives Wholly Owned Development - Stadium Village Surprise, AZ 382 Homes $47 million Budget $123,000 Cost per Home Expected 6.25% to 6.75% Return Expected Start Date: 4Q07 Expected Completion: 4Q09
Slide 21: Brookhaven - Addison, TX
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 Estimated Start: 4Q 2007 Return on Costs: 6.5% - 7.0%
Slide 22: Wholly Owned Development - Riachi at One21
UDR Value Creation Initiatives Wholly Owned Development - Riachi at One21 Plano, TX 202 Homes $18 million Budget $89,000 Cost per Home Expected 6.5% to 7.0% Return Expected Completion - 4Q07 Estimated $6 million Value Created
Slide 23: Wholly Owned Development - Tiburon
Wholly Owned Development - Tiburon Houston, TX 320 Homes $22 million Budget $68,750 Cost per Home Expected 6.8% Return Expected Completion: 2Q08 UDR Value Creation Initiatives
Slide 24: Wholly Owned Development - Lincoln at Towne Square Phase II
UDR Value Creation Initiatives Wholly Owned Development - Lincoln at Towne Square Phase II Plano, TX 302 Homes $25 million Budget $83,000 Cost per Home Expected 6.5% to 7.0% Return Expected Completion: 3Q08 Estimated $8 million Value Created
Slide 25: Development Pre-Sale - Mustang Park
UDR Value Creation Initiatives Development Pre-Sale - Mustang Park Dallas, TX 289 Homes $28 million Budget $97,000 Cost per Home Expected 7.0% to 7.5% Return Expected Completion: 4Q09 Mustang Park
Slide 26: Wholly Owned Development - Laurel Woode
UDR Value Creation Initiatives Wholly Owned Development - Laurel Woode Montgomery County, TX 324 Homes $25 million Budget $77,000 Cost per Home Expected 7.0% Return Expected Start Date: 2Q07 Expected Completion: 3Q08 Expected Completion: 3Q08 Expected Completion: 3Q08 Expected Completion: 3Q08 Expec
Slide 27: Development Pre-Sale - The Place at Millenia
UDR Value Creation Initiatives Development Pre-Sale - The Place at Millenia Orlando, Florida 370 Homes $53 million Budget $143,000 Cost per Home Expected 7.0% to 7.5% Return Expected completion: 4Q07 Millenia
Slide 28: Future Development - Carolina Corporate Center
UDR Value Creation Initiatives Future Development - Carolina Corporate Center Raleigh, NC 359 Homes $46 million Budget $128,000 Cost per Home Expected 6.5% to 7.0% Return Expected Start Date: 3Q07 Expected Completion: 2Q09 Carolina Corporate Center
Slide 29: Wholly Owned Development - Caroline Village
UDR Value Creation Initiatives Wholly Owned Development - Caroline Village Woodbridge, VA 322 Homes $75 million Budget $217,000 Cost per Home Expected 6.6% Return Expected Start Date: 4Q07 Expected Completion: 1Q09 Expected Completion: 1Q09 Expected Completion: 1Q09 Expected Completion: 1Q09 Expecte
Slide 30: Wholly Owned Development - 2400 14th Street
UDR Value Creation Initiatives Caroline Village I -95 Wholly Owned Development - 2400 14th Street Washington, D.C. 255 Homes $124 million Budget $486,000 Cost per Home Expected 5.8% Return Expected Start Date: 4Q2007 Expected Completion: 4Q2009
Slide 31: Future Development - Waterside Towers
UDR Value Creation Initiatives Future Development - Waterside Towers Purchased December 2003 Located in SW Washington D.C., 15 Minute Walk from National Mall Ten-Story Mid-Rise Structure 550 Existing Homes Current Rent: Studio - $1,129 1 Bed - $1,395 2 Bed - $1,772 3 Bed - $1,985
Slide 32: Future Development - Waterside Towers Planned Expansion
UDR Value Creation Initiatives Future Development - Waterside Towers Planned Expansion on Existing Property 11 story tower 200 homes 12,000 to 18,000 sq. ft. for retail Estimated cost: $101 million Timing: Zoning - 18 mos. Pre-Construction - 14 mos. Construction - 24 mos. Contingency - 4 mos. Total
Slide 33: Redevelopment: Reinvest with Exterior Upgrades and Interior Renovations
UDR Value Creation Initiatives Redevelopment Reinvest with Exterior Upgrades and Interior Renovations 4 Communities Completed - 1,536 Homes 8 Communities Underway - 2,532 Homes $193 million Budgeted Cost - $336 million Total Investment Targeting 8% to 10% Stabilized ROI Expect 45% growth in post-ren
Slide 34: Completed Redevelopment - Legacy at Mayland
Completed Redevelopment - Legacy at Mayland Richmond, VA Built in 1973, Purchased by UDR in December 1991. 576 Homes 100% Growth in Cash Flow to $4.6M in 33 Months 11% Cash on Cash Return Estimated Value Created: > $36 million Estimated Value Created: > $36 million Estimated Value Created: > $36 mil
Slide 35: Completed Redevelopment - Altamira Place
UDR Value Creation Initiatives After Before Completed Redevelopment - Altamira Place Altamira Springs, FL Built in 1984, Purchased by UDR in April 1994 360 Homes 65% Growth in Cash Flow to $2.2M 9% Cash on Cash Return Estimated $14.0M Value Created
Slide 36: Completed Redevelopment - Island Walk
Completed Redevelopment - Island Walk Tampa, FL Built in 1991, Purchased by UDR in Dec. 1998 400 Homes 55% Growth in Cash Flow to $2.8M 11.5% Cash on Cash Return Estimated $16.0M Value Created After Before UDR Value Creation Initiatives
Slide 37: Completed Redevelopment - Remington on the Green
UDR Value Creation Initiatives After Before Completed Redevelopment - Remington on the Green Raleigh, NC Built in 1987, Purchased by UDR in Sept. 1991 200 Homes 30% Growth in Cash Flow to $1.0M 8.6% Cash on Cash Return Estimated $4.3M Value Created
Slide 38: In Process Redevelopment - The Breyley
Redevelopment Update In Process Redevelopment - The Breyley Clearwater, FL Built in 1972, Purchased by UDR in 1993 209 Homes 55% Growth in Cash Flow to $1.6M 7.7% Cash on Cash Return Estimated $6.5M Value Created
Slide 39: In Process Redevelopment - The Canopy Apartment Villas
UDR Value Creation Initiatives In Process Redevelopment - The Canopy Apartment Villas Orlando, FL Built in 1981, Purchased by UDR in 1993 296 Homes 47% Growth in Cash Flow to $2.6M 7.5% Cash on Cash Return Estimated $12.1M Value Created After Before
Slide 40: In Process Redevelopment - Gayton Pointe Townhomes
UDR Value Creation Initiatives In Process Redevelopment - Gayton Pointe Townhomes Richmond, VA Built in 1973, Purchased by UDR in September 1995 253 Homes 93% Growth in Cash Flow to $3.1M 7.7% Cash on Cash Return Estimated $17.6M Value Created After Before
Slide 41: In Process Redevelopment - Wellington Place
In Process Redevelopment - Wellington Place Manassas, VA Built in 1987, Purchased by UDR in September 2005 372 Homes 29% Growth in Cash Flow to $4.0M 8.1% Cash on Cash Return Estimated $11.1M Value Created UDR Value Creation Initiatives After Before
Slide 42: In Process Redevelopment - Dominion Great Oaks
UDR Value Creation Initiatives In Process Redevelopment - Dominion Great Oaks Ellicott City, MD Built in 1974, Purchased by UDR in July 1994. 300 Homes 43% Growth in Cash Flow to $3.3M 7.9% Cash on Cash Return Estimated $16.3M Value Created After Before
Slide 43: In Process Redevelopment - Polo Park
UDR Value Creation Initiatives After Before In Process Redevelopment - Polo Park Nashville, TN Built in two phases in 1987 and 1990, Purchased by UDR in 2006 386 Homes 56% Growth in Cash Flow to $2.4M 9.4% Cash on Cash Return Estimated $6.1M Value Created
Slide 44: In Process Redevelopment - Bay Cove
UDR Value Creation Initiatives In Process Redevelopment - Bay Cove Clearwater, FL Built in 1972, Purchased by UDR in 1992 336 Homes 100% Growth in Cash Flow to $3.8M 6.9% Cash on Cash Return Estimated $16.6M Value Created After Before
Slide 45: In Process Redevelopment - Highlands of Preston
UDR Value Creation Initiatives In Process Redevelopment - Highlands of Preston Plano, TX Built in 1985, Purchased by UDR in 1998 380 Homes 41% Growth in Cash Flow to $2.2M 7% Cash on Cash Return Estimated $7.5M Value Created
Slide 46: Redevelopment - Kitchen/Bath Program
Providence Court - Charlotte, NC After Before UDR Value Creation Initiatives Redevelopment - Kitchen/Bath Program Upgraded Appliances, Cabinets, Lighting, Flooring, Etc. Targeting 8% to 10% Stabilized ROI 17,000 Completed Rent Increase Examples: Before After Increase So. California $1,270 $1,337 5.3
Slide 47: Atlanta Portfolio Sale Demonstrates Value Creation from Kitchen & Bath Program
The Atlanta Portfolio Sale Demonstrates Tremendous Value Creation from Our Kitchen & Bath Program 35% of the Atlanta homes (497 of 1,426) were upgraded $92 average incremental monthly rent ($762 vs. $670) $550,000 total annual incremental NOI from K/B program $10.8M additional sales proceeds from K/
Slide 48: Development Approach
Development Approach Identifying Opportunities - Research Driven Product - Appropriately Designed to Fit Opportunity Utilized For Best Execution: Wholly Owned - Joint Ventures - Pre Sales Annual Deliveries - $300-$500M - Requires Pipeline of $2.5B The Team: Experience approaching 150 years Diverse b
Slide 49: Development Process
Development Process Lease Up & Stabilization Construction Qualified 3rd party GC GC input in design Guaranteed maximum price Managed by UDR project manager Independent progress inspections Target Neighborhood Strong local demographics Near employment centers Product deliveries Sites Infill locations
Slide 50: Developer Pre-Sale Program
Developer Pre-Sale Program Developer identifies site and presents preliminary underwriting to UDR UDR reviews and agrees to proceed UDR and Developer sign binding Pre-Development Letter Pre-Development letter includes Pre-Development Budget-UDR funds approved budget on a monthly draw basis Certain G
Slide 51: Clear vision and growth strategies to deliver superior value creation
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 52: Technology Leadership
Technology Leadership Source: 3rd Party World-Wide Recognized Independent Research Firm Shown below is an independent analysis of 15 multifamily web sites conducted by a well known, world wide internet research firm. They evaluated 12 criteria important to consumers when using the web to search for