Udr, Inc. · NYSE:UDR
Udr — NAREIT Investor Forum June 2009
31 slides from Udr's conference presentation, Jun 3, 2009
Slide 1: NAREIT Investor Forum June 2009
NAREIT Investor Forum June 2009
Slide 2: UDR Overview
2 UDR Overview National portfolio of high quality, well leased multi-family assets 44,571 Homes in 161 Communities Avg. Age: 16 years Avg. Monthly Income per Home: $1,176 94.7% occupancy in 1Q 2009 Same store NOI growth of 1.9% in 1Q 2009 vs. sector average of -0.7% Percents indicate contribution of
Slide 3: UDR Overview
3 UDR Overview Properties located in selected target markets with: Low home affordability index Favorable demographic trends Proximity to employment centers, lifestyle amenities and transportation corridors Proximity to other UDR properties Strong track record over 37-year history 1,300 Employees
Slide 4: Attractive Long-Term Fundamentals
4 Attractive Long-Term Fundamentals >65 20 55 - 64 19 45 - 54 25 35 - 44 32 <35 58 (%) Propensity to Rent by Age Group Increase in the 20-34 year old demographic will be a significant driver in apartment demand as it has the highest propensity to rent College enrollment is at an all-time high, indic
Slide 5: Attractive Long-Term Fundamentals
5 Attractive Long-Term Fundamentals Homeownership rate continues to trend downward, now at 67.5% (2002 level) Each 100 bp change in homeownership equates to 1.1 million additional renter households, or a roughly 250 bp change in apartment occupancy Sources: U.S. Census Bureau, Green Street Advisors
Slide 6: Consistent Execution of Core Strategy; Focused on Continued Success in Current Challenging Environment
6 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 Leading development capability in target markets Monitor development environment Oppor
Slide 7: Consistent Execution of Core Strategy; Focused on Continued Success in Current Challenging Environment
7 Consistent Execution of Core Strategy; Focused on Continued Success in Current Challenging Environment Primary Objectives Focus on property-level operations Improve efficiency and effectiveness Continued execution of technology initiatives Preserve strong liquidity position Strengthen balance shee
Slide 8: Portfolio Transformation: Buying/Selling
8 Portfolio Transformation Buying/Selling With $8B in transactions, our team has the experience to identify and execute on opportunities
Slide 9: Portfolio Transformation: From Commodity Markets to Protected Markets
Portfolio Transformation From Commodity Markets to Protected Markets 2002 Dallas 6.4% Houston 6.1% Orlando 5.1% Phoenix 5.0% San Antonio 4.4% Top 5 markets = 27% of NOI Top 10 markets = 47% of NOI 71,968 Mature Apartment Homes 2009 Orange Co 17.0% San Francisco 9.0% Washington, DC 7.2% Tampa 6.5% Or
Slide 10: Top Markets Overview: Orange County, CA
Top 5 Markets Overview Orange County, CA Total Mature Homes: 4,067 Total Homes Owned: 4,363 Median Home Price: $430,000 Discount Rent/Own(A): 33% 10 Market Statistics Market data supplied by Axiometrics Sources: Company Reports, etc. (A) Based on 4.5% 1 yr. ARM pricing as of 4/20/09 from Bankrate.co
Slide 11: Top Markets Overview: Washington DC
Top 5 Markets Overview Washington DC Total Mature Homes: 2,050 Total Homes Owned: 3,985 Median Home Price: $279,000 Discount Rent/Own(A): 9% 11 Market Statistics Market data supplied by Axiometrics Sources: Company Reports, etc. (A) Based on 4.5% 1 yr. ARM pricing as of 4/20/09 from Bankrate.com.
Slide 12: Top Markets Overview: San Francisco, CA
Top 5 Markets Overview San Francisco, CA Total Mature Homes: 1,768 Total Homes Owned: 2,339 Median Home Price: $590,000 Discount Rent/Own(A): 43% 12 Market Statistics Market data supplied by Axiometrics Sources: Company Reports, etc. (A) Based on 4.5% 1 yr. ARM pricing as of 4/20/09 from Bankrate.co
Slide 13: Top Markets Overview: Tampa, FL
Top 5 Markets Overview Tampa, FL Total Mature Homes: 3,069 Total Homes Owned: 3,716 Median Home Price: $135,000 Discount Rent/Own(A): 6% 13 Market Statistics Market data supplied by Axiometrics Sources: Company Reports, etc. (A) Based on 4.5% 1 yr. ARM pricing as of 4/20/09 from Bankrate.com.
Slide 14: Top Markets Overview: Orlando, FL
Top 5 Markets Overview Orlando, FL Total Mature Homes: 2,500 Total Homes Owned: 3,167 Median Home Price: $155,000 Discount Rent/Own(A): 14% 14 Market Statistics Market data supplied by Axiometrics Sources: Company Reports, etc. (A) Based on 4.5% 1 yr. ARM pricing as of 4/20/09 from Bankrate.com.
Slide 15: Development/Redevelopment Pipeline
Development/ Redevelopment Pipeline 84% of Deliveries to Occur 2010 March 31, 2009 ($000's) 15
Slide 16: Development
Development 16 The Belmont The Belmont The Vintage Lofts Ashwood Commons Stadium Village
Slide 17: Development/Redevelopment Pipeline
Development/ Redevelopment Pipeline 84% of Deliveries to Occur 2010 17
Slide 18: Taylor Place - Before & After
Taylor Place - Before & After Taylor Place - Before & After Taylor Place - Before & After Taylor Place - Before & After Taylor Place - Before & After Corridor 18
Slide 19: Taylor Place - Before & After
Taylor Place - Before & After Taylor Place - Before & After Taylor Place - Before & After Taylor Place - Before & After Taylor Place - Before & After Fitness Area replaces Laundry Room Interior 19
Slide 20: Value Created Through Redeveloping 4,458 Homes
We have created value through redeveloping 4,458 homes, with incremental investment of $174M. Criteria for redevelopment: Older asset in 'forever great' location Opportunity to significantly increase rent and change resident profile (more affluent resident) Physical characteristic of structure allow
Slide 21: Development Opportunities: Vitruvian Park
Development Opportunities Vitruvian Park - A Phased Development Opportunity 21
Slide 22: Development and Redevelopment Opportunities To Be Pursued When Market Conditions Improve
Development and Redevelopment Opportunities To Be Pursued When Market Conditions Improve 22
Slide 23: Transform Operations
Transform Operations Early Adopter of Technology Solutions Increase Channels of Distribution iPhone, Twitter, MySpace Mobile User search capability Spanish language website Quick Response 2D Bar Code Achieved 1 million organic search engine visitors Leverage Corporate Resources ACH Payment Improve c
Slide 24: Transform Operations
Transform Operations ‘% of Residents Paying Via ACH # of Residents using UDR Tenant Portal om a am se 10% * o% sary Fetnuny Meh Moy ant ty 200 % of Move-ins initiated via Intemet Marketing & Advertising cost per home. g89998 uae open aos he se
Slide 25: Transform Operations: Cycle Tested Management Team
Transform Operations Cycle Tested Management Team 25 Leadership Average tenure with UDR for the top 50 leadership positions in Operations is over 7 years No turnover in 3 years for the top 45 property managers (Area Directors and District Managers) Area Directors Teresa Barker 26 years - industry, 8
Slide 26: Sourcing Low-Cost Capital
26 Sourcing Low-Cost Capital We have accessed a number of capital sources over the last 8 years: Common Equity: $502M Preferred: $135M Secured Debt: $1.0B Unsecured Debt: $2.3B Joint Venture Capital: $860M Current Financial: Currently have cash and undrawn credit facilities totaling $1.1B Existing d
Slide 27: Balance Sheet Capacity
Balance Sheet Capacity Dividend Reduction Adds Retained Capital 27
Slide 28: Manageable Maturities
Manageable Maturities as of March 31, 2009 No Single Maturity Exceeds 12% of Total Debt Outstanding 28 Note: Assumes all available extensions are executed. UDR's $600M line of credit matures July 2012.
Slide 29: Forward-Looking Statement
Forward-Looking Statement Certain statements made in this press release 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 su
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Slide 31: Notes
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