Slide 1: Transformation for Growth
Transformation for Growth Topics: $1.7B Portfolio Sale - Details New UDR Portfolio Characteristics Development Redevelopment Corporate Realignment 2008 Outlook January 29, 2008
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: Portfolio Sale: Cap Rate and Average Monthly Rent
Transformation for Growth: Portfolio Sale Cap Rate**: *Source: Merrill Lynch Apt. Monitor, 12/6/07 - 3Q07 **Average of Wall Street sell side estimates Old New Average Monthly Rent*
Slide 4: Our portfolio is concentrated in strong markets in fewer states
Our portfolio is concentrated in strong markets in fewer states Transformation for Growth: Portfolio Sale * 2008 Same Store NOI ** Total Portfolio excluding unconsolidated joint ventures
Slide 5: The NAV and earnings impact of our development pipeline is more pronounced
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 97% of our development pipeline is either generating NOI, under construction, or in lease-up: *Contains operating properties g
Slide 6: 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 7: Colorado - New Headquarters, Corporate Restructuring
Denver, Colorado to become Corporate Headquarters Restructuring to improve efficiencies $3.6M charge in 4Q07 Severance, relocation, office closings Reduce corporate headcount $2M savings in 2008 Transformation for Growth: Colorado - New Headquarters, Corporate Restructuring Source: Stifel Nicolaus *
Slide 8: Fourth Quarter Highlights
Transformation for Growth: Fourth Quarter Highlights
Slide 9: 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 We plan to discuss 2008 FFO guidance after closing
Slide 10: Today's announcement is consistent with our strategy
Today's announcement is consistent with our strategy Stronger portfolio, focused in fewer markets Improved growth profile Enhanced economics through exposure to job growth markets and low affordability Proceeds will fund development projects Continue to pursue entitlement and short-term hold opportu
Slide 11: We have a clear vision and the right growth strategies to deliver superior value
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