Udr, Inc. · NYSE:UDR
Udr — Investor Presentation (February 2014)
24 slides from Udr's investor presentation, Feb 4, 2014
Slide 1: UDR, Inc. February 2014
Elements Too - Bellevue, WA UDR, Inc. (NYSE: UDR), has a demonstrated history of successfully managing, buying, selling, developing, and redeveloping attractive real estate properties in primarily coastal, core U.S. markets S&P 400 Company $13 Billion Enterprise 23 Markets, 185 Communities, 52,949 A
Slide 2: Table of Contents
TOPIC PAGE Strategic Priorities 3 Review of 2013 - Results versus Plan 4 Capital Allocation / Portfolio Improvement 5 Operational Excellence 8 Cash Flow, Dividend and NAV per Share Growth 9 Balance Sheet Management 10 2014-2016 Expectations 11 2014 Market Growth Expectations 13 Comparison of Updated
Slide 3: Strategic Priorities
Drives Value Creation and Total Shareholder Return 1 2 4 Strategic Priorities Our Strategic Priorities remain unchanged and we are highly focused on their continued execution Capital Allocation / portfolio improvement Disciplined allocation of capital to growth opportunities that are accretive to NA
Slide 4: Review of 2013 - Results vs. Plan
OPERATIONS, CASH FLOW AND DIVIDEND GROWTH - STRONG OPS; IMPROVED CASH FLOW 2 Review of 2013 - Results vs. plan (at the midpoint) 2013 Original Yr/Yr Guidance 2013 Actual Results OPERATIONS SS Revenue Growth 4.5% 4.9% SS NOI Growth 5.1% 6.0% SS Revenue per Occupied Home N/A $1,509 CASH FLOW, DIVIDEND
Slide 5: Development represents an AFFO and NAV accretive use of capital
As of December 31, 2013. Dollar amounts presented at UDR's ownership interest. UDR has the option to purchase the property upon completion of construction and we receive 50% of the upside upon acquisition of the asset or sale to a third party. Note: Redevelopment spend necessary to finish current pr
Slide 6: We have a $1.1 billion shadow development pipeline focused in our core markets
As of December 31, 2013. Excludes Pacific City land site in Huntington Beach, CA. Source: Company documents and forecasts. 6 Capital Allocation / Portfolio Improvement We have a $1.1 billion shadow development pipeline focused in our core markets Seattle: 1 land parcel San Francisco Area: 2 land par
Slide 7: Development is expected to generate strong cash flow and NAV growth
7 Capital Allocation / Portfolio Improvement development is expected to generate strong cash flow and nav growth TAKEAWAYS Development FFO/sh drag is expected to total $0.10 against accretion of $0.10 during the 2014 through 2016 time period Upon stabilization, our current $1.2 billion pipeline is e
Slide 8: Operational Excellence
Top-notch operations drive property cash flow growth which supports ffo, dividend and nav per share growth over time Investments in technology and personnel will continue to drive efficiency and improve our resident's experiences Best-in-class operating platform Operational Excellence Our Operations
Slide 9: Cash flow, dividend and NAV growth
Cash flow, dividend and nav growth After a decade of transforming the portfolio, our cash flow, NAV and CVNI growth are expected to be strong through 2016 Source: Company documents and forecasts. (CHART) (CHART) (CHART) Primary drivers of 2014 AFFO/sh growth at the midpoint include: Mature/Non-matur
Slide 10: Balance sheet management
METRIC YEAR-END 2013A YEAR-END 2014E YEAR-END 2016E Debt-to-assets 39% 38% to 40% 35% to 38% Net debt-to-EBITDA 7.0x 6.3x to 6.7x 5.6x to 6.2x Fixed Charge Coverage 3.1x 3.4x to 3.6x 3.6x to 3.8x Balance sheet management 3 Well-Laddered Maturity Schedule 4 Investment Grade Ratings S&P: BBB, stable o
Slide 11: Earnings and Operating Expectations
Earnings and Operating Expectations $ IN MILLIONS, EXCEPT PER SHARE 2013A 2014E 2015E - 2016E CUMULATIVE EARNINGS FFO per Share $1.44 $1.47 to $1.53 10.0% to 14.0% FFO as Adjusted per Share $1.39 $1.47 to $1.53 10.0% to 15.0% AFFO per Share $1.23 $1.30 to $1.36 13.0% to 17.0% Wtd. Avg. Dil. Shares/U
Slide 12: Capital Markets, Transactional and Balance Sheet Expectations
Capital Markets, Transactional and Balance Sheet Expectations $ IN MILLIONS, EXCEPT PER SHARE 2013A 2014E 2015E - 2016E CUMULATIVE CAPITAL MARKETS ACTIVITY Debt Maturities (1) $160 $348 $800 New Debt Issuances (2) $300 $250 to $350 $650 to $850 Equity Issuances $0 $50 to $150 $500 to $700 TRANSACTIO
Slide 13: 2014 Market Growth Expectations
(1) Revenue growth based on UDR's same store revenue guidance for calendar year 2014. % NOI concentrations based on 100% of NOI. Core Markets: Seattle, San Fran. Bay Area, LA, Orange County, San Diego, Denver, Austin, Dallas, Boston, NYC, Baltimore/Washington D.C. area and Philadelphia. Capital Ware
Slide 14: Updated '14-'16 Plan vs Initial '13-'15 Plan
Updated '14-'16 Plan vs Initial '13-'15 Plan 2013-2015E Cash Flow growth is expected to be better in the new versus old plan (CHART) ...the same is true for same store Growth (CHART) (CHART) 14
Slide 15: Definitions and reconciliations
Definitions and reconciliations Acquired Communities: The Company defines Acquired Communities as those communities acquired by the Company, other than development and redevelopment activity, that did not achieve stabilization as of the most recent quarter. Adjusted Funds From Operations ("AFFO"): T
Slide 16: Definitions and reconciliations
Definitions and reconciliations Funds From Operations ("FFO"): The Company defines FFO as net income (computed in accordance with GAAP), excluding impairment write-downs of depreciable real estate or of investments in non-consolidated investees that are driven by measurable decreases in the fair val
Slide 17: Definitions and reconciliations
Definitions and reconciliations Non-Mature: The Company defines Non-Mature Communities as those communities that have not met the criteria to be included in Same-Store Communities. Non-Residential / Other: The Company defines Non-Residential / Other as non-apartment components of mixed-use propertie
Slide 18: Definitions and reconciliations
Value Creation: Value creation is defined as the difference between the Company's best estimate of the current or expected market value of a community and its original purchase price or cost basis. Underlying valuation estimates and model inputs are provided by the Company. Estimated value creation
Slide 19: Reconciliation footnotes
(1) Real estate depreciation on unconsolidated joint ventures excludes the portion of the GAAP gain (discussed in Note 3 of Attachment 1 of the Company's 4Q 2013 supplemental report) related to depreciation, net of tax, in order to accurately reflect the FFO gain of the transaction. (2) $2.7 million
Slide 20: Forward Looking Statements
Definitions and reconciliations Forward Looking Statements Certain statements made in this presentation may constitute "forward-looking statements." Words such as "expects," "intends," "believes," "anticipates," "plans," "likely," "will," "seeks," "estimates" and variations of such words and similar
Slide 21: Notes
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Slide 22: Notes
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Slide 23: Notes
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Slide 24: Investor Relations Contact
Investor Relations Contact: Chris Van Ens cvanens@udr.com 720.348.7762