Udr, Inc. · NYSE:UDR
Udr — United Dominion Realty Trust — Investor Presentation (August 2006)
31 slides from Udr's investor presentation, Aug 15, 2006
Slide 1: UDR | United Dominion Realty Trust Investor Presentation
UDR | United Dominion Realty Trust The Value of our real estate is Our Team’s Ability to Create Opportunities. Investor Presentation August 2006
Slide 2: Safe Harbor Statement
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 3: UDR Overview
4th Largest Apartment REIT Approximately 75,000 apartment homes $7.7 billion total market cap Portfolio positioned to capture job and demographic trends Proven Record of Delivering Shareholder Return: Year to Date: 24% 2 Years: 27% 5 Years: 22% 10 Years: 16% 30 consecutive years of dividend increase
Slide 4: UDR Overview: Broad Based Capabilities
UDR Overview We have broad based capabilities to create value in many ways: Operations Acquisitions Dispositions Development Redevelopment Footprint of Opportunities Operate in 35 + Markets Range of Product and Price Points Excellent Cash Flow from Core Holdings
Slide 5: UDR Overview Management Team
UDR Overview Management Team We have a strong, experienced team: Average tenure with UDR for the top 50 leadership positions in Operations is over 7 years Improved associate turnover from 60% in 2001 to just over 36% in 2006
Slide 6: Our Holdings as of August 2006
Top States for 2006 Projected Net Operating Income* California: 27% Florida: 15% Metro D.C.: 14% Texas: 10% North Carolina: 9% Our Holdings as of August 2006 UDR - Operations *ProForma for acquisitions and dispositions under contract **Source: Economy.com
Slide 7: 2006 Second Quarter Results
Rents & Reimbursements Per occupied home = $878 Up $47 over prior year Up 5.4% over prior year Occupancy 94.9% - Up 40 bps over prior year Highest level in over four years Concessions Down 11.1% vs. prior year Expenses Up 2.9% over prior year Bottom Line NOI Up 8.0% over prior year 2006 Second Quart
Slide 8: Same Store Year Over Year Growth
Same Store Year Over Year Growth UDR - Operations Revenue NOI Recent Growth Rates are the Highest in over 6 Years
Slide 9: UDR - Operations: Technology
UDR - Operations The Internet makes it easy to do business with us Shop for and reserve apartment, screen for credit, complete application Resident portal for on-line service requests available 4Q2006 Investigating pricing software such as LRO and Yield Star to enable dynamic internet pricing Cost t
Slide 10: 2006 Summary UDR - Acquisitions
2006 Summary UDR - Acquisitions
Slide 11: Canyon Oaks, San Ramon, CA
New Community in San Ramon, CA Built in 2005 250 Homes - $225K Per Home 5.0% Return, $1,516 Avg. Rent May Become Condo Conversion Canyon Oaks UDR - Acquisitions UDR - Acquisitions
Slide 12: Milazzo, San Diego, CA
Community in San Diego, CA Built in 1986 250 Homes - $207K Per Home 4.3% Return, $1,268 Avg. Rent May Become Condo Conversion or K/B Upgrade Milazzo UDR - Acquisitions
Slide 13: Polo Park, Nashville, TN
Community in Nashville, TN 386 Homes Average Monthly Collections: $624 Candidate for Kitchen/Bath Program Strong Operating Team in Nashville - Opportunity for Improved Performance Polo Park UDR - Acquisitions UDR - Acquisitions UDR - Acquisitions
Slide 14: Essex Portfolio Acquisition, September 2004
16 garden-style communities 4,646 homes Purchase price: $755 million Current market value: $925 million Condo/density/Etc. market value: $1,100 million Cap rate at purchase: 5.5% Realized cap rate: 6.1% Cost per home: $162,721 Current value: $198,900 Condo/density/etc.: $238,000 2Q2006 Performance R
Slide 15: UDR - Sales: 2006 Summary
UDR - Sales 2006 Summary Location Price ($m) Homes Gain ($m) Submarkets of Dallas 6 Communities andFortWorth, 1 745 1711 $179 Vista Point Phoenix, AZ 14.6 192 84 Condominiums AZ,MD, FL and OR 57.8 300 15.0 Total Apartment Communities $146.9 2,203 $ 41.0
Slide 16: Development Pipeline at July 2006
Development Pipeline at July, 2006 UDR - Development
Slide 17: Verano, Rancho Cucamonga, CA
New Development in Rancho Cucamonga, CA 414 Homes $67 million Budget $162,100 Cost per Home 7.5% to 8.0% Return as Apartment Homes In Lease-Up: 71% Leased Verano UDR - Development UDR - Development UDR - Development
Slide 18: Mandalay on the Lake
Mandalay on the Lake UDR - Development New Development in Los Colinas, TX 367 Homes $32 million Budget $87,200 Cost per Home 7.5% to 8.3% Return as Apartment Homes Expected Completion - 3Q06 In Lease-Up: 55% Leased
Slide 19: Waterside Towers
Waterside Towers UDR - Development 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: 1 Bed - $1,275 2 Bed - $1,725
Slide 20: Waterside Towers Planned Expansion
UDR - Development Waterside Towers Waterside Towers Waterside Towers ^ Planned Expansion on Existing Property ? 11 story tower ? 200 to 220 homes ? 12,000 to 18,000 sq. ft. for retail ? Estimated cost: $70 million ? Timing: Zoning - 18 mos. Pre-Construction - 14 mos. Construction - 24 mos. Contingen
Slide 21: JPI Joint Venture - Princeton Court
JPI - National Apartment Developer Negotiated new development in Marina Del Rey, CA 298 homes $134 million budget $449,700 cost per home 6% to 6.5% return as apartment homes Joint Venture - Princeton Court UDR - Development UDR - Development UDR - Development
Slide 22: Joint Venture - Bellevue, WA
Joint Venture - Bellevue, WA Proposed High Rise Development 400 Homes Ground Floor Retail $135 million Budget Structure: 49% UDR/51% SU Development UDR - Development Recent Su Development Project Bellevue, WA Bellevue Plaza Development Site
Slide 23: UDR - Redevelopment
Reinvest with Exterior Upgrades and Interior Renovations 10 Communities Underway - 3,101 Homes Targeting 8% to 10% Stabilized ROI 7,000 Homes Under Study Full Scope Rehabs UDR - Redevelopment
Slide 24: Legacy at Mayland, Richmond, VA
Built in 1973, Purchased by UDR in December 1991. 576 Homes Full Scope Rehab Approaching Completion Value Created: >$20 million Doubled Cash Flow to $4.6M in 33 Months Excel.Sheet.8 Excel.Sheet.8 Excel.Sheet.8 Excel.Sheet.8 Excel.Sheet.8 Excel.Sheet.8 Excel.Sheet.8 Excel.Sheet.8 Excel.Sheet.8 Excel.
Slide 25: Full Scope Redevelopment: Great Oaks and Lakeside North
Full Scope Great Oaks - Elliott City, MD: 299 Homes, June 2006 Start, Dec. 2006 Completion Before After UDR - Redevelopment Lakeside North - Altamonte Springs, FL: 360 Homes, Sept. 2005 Start, May 2007 Completion
Slide 26: Pine Avenue and Parkers Landing
Before After Pine Avenue - Long Beach, CA: 158 Homes, July 2006 Start, Mar. 2007 Completion Full Scope UDR - Redevelopment Parkers Landing Tampa, FL
Slide 27: Kitchen/Bath Program Goals
Kitchen/Bath Program Before After UDR - Redevelopment Dominion Park 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
Slide 28: Kitchen/Bath Program: Providence Court
Upgraded Appliances, Cabinets, Lighting, Flooring, Etc. Targeting 8% to 10% Stabilized ROI 11,000 Completed; > 20,000 in Pipeline Kitchen/Bath Program Before After Providence Court - Charlotte, NC UDR - Redevelopment
Slide 29: Kitchen/Bath Program: How We Are Doing It Better
Before After 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 30: Compelling Value Creation Strategy
Creating Value and Making Money 5 Ways Strong Operator Delivering Stable, Predictable Returns Disciplined Approach to Buying Communities Capturing Value through Sales, created by Demand for Institutional-quality Apartment in Job Growth Markets Creating Value through Development and Redevelopment $53
Slide 31: Funds From Operations (FFO) Definition
Funds From Operations (FFO) - The National Association of Real Estate Investment Trusts ("NAREIT") defines funds from operations ("FFO") (April 2002 White Paper) as net income (computed in accordance with accounting principles generally accepted in the United States (GAAP)), excluding gains (or loss
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