Recent UDR Investment Activity

Recent UDR Investment Activity
95 Wall
New York, NY
21 Chelsea
New York, NY
View 14
Washington, D.C.
Rivergate
New York, NY
10 Hanover Square
New York, NY
Investment Activity: August 2010 – January 2012
Acquisitions: $2.0 billion(1)

4,535 homes with an average age of 12 years and a weighted average monthly income of $2,451 per home
 Increased presence in existing UDR core markets and entered Boston and Manhattan
Dispositions: $615 million(1)

4,637 homes with an average age of 20 years and a weighted average monthly income of $1,167 per home
 Will continue to expose non-core communities to the market that do not fit UDR’s long-term strategy
Joint venture activity: $4.0 billion book value

Formed two joint ventures with MetLife (November 2010 and January 2012.) To date have invested $281
million of the $450 million of total capacity under the Kuwait Finance House (‘KFH’) joint venture
 Increased presence in existing core markets through both joint ventures
Development(2)

Strategy: Focus development opportunities in select core markets that compliment and enhance UDR’s
existing portfolio such as Southern California, Northern California, Washington, D.C., Boston and Dallas
 Pipeline: 3,040 homes in 11 communities; total estimated cost of $901 million or $296 thousand per home;
$300 million spent to date
Redevelopment(2)

Strategy: Focus on generating strong risk-adjusted returns in key markets such as Manhattan, Southern
California, Northern California and Washington, D.C.
 Pipeline: 3,123 homes in 7 communities; total estimated cost of $319 million or $102 thousand per home;
$53 million spent to date
(1) Represents wholly-owned transactions completed from August 2010 – January 2012..
(2) As of December 31, 2011.
2
2010 Acquisitions
Improved the growth profile of the portfolio through acquisitions in select core markets
Community
Location
1818 Platinum Triangle
(3)
Marina Pointe
Garrison Square
Ridge at Blue Hills
Domain Brewers Hill
Total/Weighted Average:
Anaheim, CA
Marina del Rey, CA
Boston, MA
Braintree, MA
Baltimore, MD
Community
Location
Portico at Silver Springs - KFH
UDR/MetLife Joint Venture I
Total/Weighted Average JV:
Silver Spring, MD
Various
Total/Weighted Average:
Purchase Price
$000s
$70,500
157,500
98,000
40,000
46,000
$412,000
Purchase Price
$43,000
93,000
$136,000
$548,000
Monthly Income Per
Homes Occupied Home(1)
265
583
160
186
180
1,374
$1,838
1,707
3,406
1,492
1,975
$1,936
Monthly Income Per
Homes Occupied Home(1)
Monthly Income Per
Occupied Home(2)
+3%
N/A
+7%
+12%
+6%
+5%
Monthly Income Per
Occupied Home(2)
151
5,748
5,899
$2,208
2,167
$2,168
+7%
+25%
+25%
7,273
$2,648
+21%
(1) Represents monthly income per occupied home at the time of acquisition.
(2) Represents monthly income per occupied home growth through 4Q11..
(3) $36 million redevelopment began in 3Q11. See slide 24 for additional details.
3
1818 Platinum Triangle - Anaheim, CA

Developed by a leading private developer

Easy access to major transportation arteries and
infrastructure

High-quality community and home amenities

Substantial discount to replacement cost

Off-market transaction
Marina Pointe - Marina del Rey, CA

Acquisition created a 1,051 home “pod” with two
existing UDR communities located within two
blocks

Conveniently located with easy access to Venice,
Santa Monica, Beverly Hills, and Los Angeles

Currently undergoing a $36 million redevelopment
which includes interior, common area and exterior
renovations
4
Garrison Square – Boston, MA

One of two acquisitions marking UDR’s strategic
entry into the Boston market

Well-located in the heart of historic Boston’s Back
Bay and South End neighborhoods

Excellent access to public transit system
Ridge at Blue Hills – Braintree, MA

One of two acquisitions marking UDR’s strategic
entry into Boston market

Recently developed by a leading private developer

Excellent location with easy access to public
transportation infrastructure and major traffic
arteries

Significant discount to replacement cost
5
Domain Brewers Hill – Baltimore, MD

Recently developed by a leading private developer

High-quality community and home amenities

Significant discount to replacement cost

Off-market transaction
KFH JV: Portico at Silver Springs – Silver Springs, MD

Acquired with its joint venture partner, Kuwait
Finance House (‘KFH’) in April 2010

Located near the Metrorail station in Silver Spring,
Maryland

The 151-home high-rise community has one- and
two- bedroom homes and was completed in 2009
6
UDR/MetLife JV I
Valued at $2.4 billion when formed. UDR had a 12.3% ownership interest in the 26 operating
communities originally included in the joint venture
Location
(1)
(2)
Monthly Income Per
Occupancy
Monthly Income Per
% of Total
(1)
(2)
(1)
Occupied Home Growth
at Acq.
Homes
Homes
Occupied Home at Acq.
Occupancy
(2)
Gain in bps
California
Metro DC
Washington
Pennsylvania
Texas
Colorado
North Carolina
Massachusetts
Maryland
Florida
686
263
555
290
916
223
670
1,302
379
464
12%
5%
10%
5%
16%
4%
12%
23%
7%
8%
$3,156
3,007
2,707
2,633
2,475
1,846
1,783
1,781
1,582
1,135
+8%
+28%
+21%
+14%
+49%
+27%
+25%
+22%
+24%
+8%
85.4%
33.5%
86.8%
95.2%
90.6%
85.7%
87.3%
79.6%
80.7%
90.9%
+930
+5,850
+720
+310
+420
+540
+660
+1,590
+1,130
+380
Total/Wtd. Avg.:
5,748
100%
$2,167
+25%
83.5%
+1,100
As of September 30, 2010.
As of December 31, 2011.
Ashton Westwood – Los Angeles, CA
Cirque – Dallas, TX
7
2011 Acquisitions
Improved the growth profile of the portfolio through acquisitions in select core markets
Community
Location
10 Hanover Square
388 Beale
14 North
Inwood West
View 14
Manhattan
San Francisco, CA
Peabody, MA
Woburn, MA
Washington, D.C.
Manhattan
Manhattan
Manhattan
Rivergate(3)
21 Chelsea
95 Wall
Total/Weighted Average:
Purchase
Price $000s
Joint Ventures - KFH, 30% UDR / 70% KFH
Twenty400
Arlington, VA
1301 Thomas Circle
Washington, D.C.
Total/Weighted Average JV:
Total/Weighted Average:
Homes
Price Per
Home(1)
Year Built /
Renovated
Monthly Income Per
Occupied Home(2)
$259,750
90,500
64,500
108,000
105,538
443,403
138,930
328,914
$1,539,535
493
227
387
446
185
706
210
507
3,161
$484,000
395,000
167,000
242,000
494,000
585,000
595,000
550,000
$446,000
2005
1999
2005
2007
2009
1985
2001
2008
2001
$3,000
2,908
1,364
1,604
2,808
3,262
3,226
3,100
$2,674
$84,000
153,800
$237,800
217
292
509
$387,000
527,000
$467,000
2010
2006
2008
$2,140
2,740
$2,484
$1,777,335
3,670
$449,000
2002
$2,648
(1) Excludes commercial space and parking where applicable.
(2) Represents monthly income per occupied home at the time of acquisition.
(3) $60 million redevelopment began in 4Q11. See slide 28 for additional details.
8
10 Hanover Square – New York, NY

23-story high-rise containing 41,650 square feet
of fully-leased commercial space

Located in the Financial District of Manhattan,
between Water Street and Pearl Street;
conveniently located near Battery Park, New
York Stock Exchange and the Wall Street
subway station

$3 million renovation will include an updated
lobby and lounge spaces, corridor renovation
and an expanded rooftop deck
388 Beale – San Francisco, CA

Two-20 story high-rise towers, located in the urban
Rincon Hill neighborhood of downtown San
Francisco

Community amenities include 24-hour concierge
service, outdoor spa, state-of-the-art fitness center,
social lounge, and a controlled access on-site
parking garage

Within walking distance of the Financial District,
Embarcadero and the Bay Bridge
9
14 North – Peabody, MA

Community amenities include a clubhouse, state-ofthe-art fitness center, landscaped picnic areas with
covered atriums and barbeque grills and a resort
style swimming pool and sundeck

One-, two-, and three-bedroom homes, and lofts,
feature open floor plans with bay windows, lofted
ceilings, and spacious walk-in closets

The community offers easy access to Interstate 95
and US-1, as well as the Salem Train Station,
providing convenient access to the greater Boston
area
Inwood West – Woburn, MA

The community offers a clubhouse with an indoor
basketball court, state-of-the-art fitness center,
beautifully landscaped picnic areas with barbeque
grills and a children’s play area

Residents have an array of transportation options
ranging from train and bus stations, Amtrak’s high
speed rail line, and convenient access to Interstate
93 with direct highway access to Downtown Boston

The acquisition also includes a 9-acre land parcel
which is entitled to build 34 market rate apartment
homes
10
View 14 – Washington, D.C.

Located in the popular U Street Corridor – a
young professional demographic neighborhood in
Northwest Washington, D.C.

The 9-story, 185-home luxury community was
completed in 2009 and is located directly across
the street from UDR’s 2400 14th Street
development and only ten blocks from UDR’s
Andover House community

The community has a 100% property tax
abatement incentive through 2020
Rivergate – New York, NY

35-story high-rise containing 24,315 square feet of
fully-leased commercial space and a 125-space
parking garage

Located in desirable Murray Hill neighborhood of
Manhattan, with views overlooking the East River

Occupies a full city block between 34th and 35th
Streets, FDR Drive and First Avenue

$60 million redevelopment over the next few years
will include apartment home upgrades as well as
newly renovated community areas
11
21 Chelsea – New York, NY

14-story high-rise with 1,600 square feet of fully
leased retail space and a 152-space parking
garage

Located in the desirable Chelsea neighborhood on
21st Street between Sixth and Seventh Avenues

$6 - $8 million redevelopment includes redesigned
kitchen and bath, interior hallway renovation, a
redesigned lobby, improved rooftop patio and a
new management office
95 Wall – New York, NY

22-story high-rise containing 7,526 square feet of
fully-leased commercial space and a 97-space
parking garage

Located in the Financial District on Wall Street
between Water and Front Streets, just one block
east of 10 Hanover Square

Condo quality amenities include hardwood flooring,
marble countertops and backsplashes, in-home
washer dryer units and expansive windows with
custom shades
12
KFH Joint Venture Acquisitions
Twenty 400 – Arlington, VA

Located along the I-395 corridor south of the District
of Columbia and two miles from the Pentagon, and
less than a mile from the Company’s 241-home
apartment community, Delancey at Shirlington Village

Community amenities include a central courtyard,
resort style swimming pool, a fitness center, resident
lounge and a 329-space parking garage

Condominium-quality finishes include stainless steel
appliances, granite countertops, modern custom
cabinetry and full size washer/dryers
1301 Thomas Circle – Washington, D.C.

10-story building constructed in 2006; located in the
Logan Circle neighborhood near the 14th Street
Corridor, less than a mile from the White House and
close to Metrorail stations

Just a short walk from two of the Company’s other
operating communities, Andover House and View 14,
as well as its development project, 2400 14th Street

Condominium-quality finishes include high-end
appliances, granite countertops, maple cabinetry, bay
windows, nine-foot ceilings and full-size washer/dryers
13
2012 – Formed UDR/MetLife JV II
Valued at $1.3 billion when formed. UDR has a 50% ownership interest in the 12 operating
communities included in the joint venture
Monthly Income Per
UDR/MetLife JV II Details
Ashton Austin
Aston Bellevue
TEN20
Lodge at Foxborough
Lenox Farms
Charles River Landing
Domus
Total/Weighted Average
Columbus Square
801 Amsterdam
775 Columbus
795 Columbus
805 Columbus
808 Columbus
Total/Weighted Average
(1)
Location
Austin, TX
Bellevue, WA
Bellevue, WA
Foxborough, MA
Braintree, MA
Boston, MA
Philadelphia, PA
Manhattan
Manhattan
Manhattan
Manhattan
Manhattan
Total/Weighted Average
(1)
(2)
Homes
Year Built
Occupied Home
(2)
Occupancy
(2)
259
202
129
250
338
350
290
1,818
2009
2009
2009
2009
2009
2010
2008
2009
$3,601
2,728
2,640
1,862
2,720
2,250
3,000
$2,677
92.8%
95.1%
91.9%
92.4%
96.1%
98.1%
98.3%
95.5%
100
56
132
63
359
710
2009
2011
2011
2011
2009
2010
$3,148
3,306
4,013
3,818
4,223
$3,924
97.0%
100.0%
95.5%
79.4%
97.5%
95.6%
2,528
2009
$3,027
95.5%
UDR’s owns a 50% interest in the 12-community joint venture.
As of December 31, 2011.
14
UDR/MetLife Joint Venture II

Newly formed JV wherein each party owns a 50%
interest in a $1.3 billion portfolio of twelve operating
communities containing 2,528 apartment homes:

Seven of the twelve communities (1,818
homes) were contributed from the
UDR/MetLife I joint venture

Columbus Square (710 homes) consists of
five recently developed, high-rise apartment
buildings on the Upper West Side of
Manhattan

The 2,528 apartment homes have an average age of
2 years, a monthly income per occupied home of
$3,027(1) and are 95.5% occupied(1)

UDR will operate the communities in the new JV and
will receive property management, asset
management and financing fees
Columbus Square – New York, NY
(1)
As of December 31, 2011.
15
Columbus Square

Located on the Upper West Side of Manhattan

Purchased by the newly formed joint venture for $630
million

Partially funded through a combination of 10-year fixed
and floating-rate debt totaling $302.3 million at an average
rate of 3.8%

Four of the five towers are located just one block from
Central Park and encompass the Columbus Avenue street
front between 97th Street and 100th Street

The fifth tower is on Amsterdam Avenue and 100th Street,
just one block west of the other four buildings

Two acres of private, roof-top park space
Columbus Square – New York, NY
16
Columbus Square

All five buildings developed under the 421a program and have received real estate tax
abatements that range from 10 to 20 years

The well-amenitized high-rises sit above 392-parking spaces and 400,000 square feet of
street-level retail, including a Whole Foods, Modell’s, PetCo, Duane Reed and
Starbucks(1)

As 98th Street and 99th Street do not connect through Columbus Avenue, Columbus
Square has a unique neighborhood-like feel
Columbus Square – New York, NY
(1)
Columbus Square – New York, NY
400,000 square feet of retail space and the 392 parking spaces were not included in the acquisition.
17
Communities Contributed from UDR/MetLife I JV


The seven communities contributed from the
UDR/MetLife I JV (1,818 homes) are located in highbarrier-to-entry markets with above-average job
growth, low homeownership affordability and limited
new multifamily supply
Monthly income per occupied home for the seven
communities increased 22% and occupancy
increased from 89% to 95% since the formation of the
UDR/MetLife I JV in November 2010
Ashton Bellevue – Bellevue, WA
(1)
Monthly Income Per Occupied
Home (1)
$1,300
$1,200
$1,100
$1,000
$900
$800
$700
$600
$2,677
$2,189
+22%
Nov. 2010
Domus – Philadelphia, PA
Dec. 2011
Ten20 – Bellevue, WA
Seven communities contributed from the UDR/MetLife JV I.
18
Development Pipeline
Strategy: Focus development opportunities in select core markets that compliment and
enhance UDR’s existing portfolio such as Southern California, Northern California
Washington, D.C., Boston and Dallas
Community
Location
2
Homes
Budgeted Cost
$000s
Cost to Date $000s
Est. Completion
Date
Addison, TX
347
$69,000
$66,707
1Q12
Dallas, TX
Washington, D.C.
13
255
$4,175
126,100
$1,947
64,889
2Q12
4Q12
Huntington Beach, CA
San Francisco, CA
467
315
150,000
139,600
32,202
37,679
2Q13
3Q13
Phase III - Vitruvian Park
Addison, TX
391
98,350
18,518
3Q13
Los Alisos
Total Wholly Owned:
Mission Viejo, CA
320
2,108
87,050
$674,275
26,794
$248,736
4Q13
Joint Ventures
Location
The Lodge at Stoughton
Stoughton, MA
95.0%
240
$43,400
$17,213
2Q12
San Diego, CA
College Park, MD
Huntington Beach, CA
95.0%
95.0%
90.0%
263
256
173
932
75,500
62,000
46,000
$226,900
12,115
8,585
13,072
$50,985
3Q13
3Q13
TBD
Savoye
Belmont Townhomes
th
2400 14 Street
Village at Bella Terra
Mission Bay
SM
th
13 & Market
Domain College Park
Beach Walk
Total JV:
Total:
Ownership
Interest
Homes
3,040
Budgeted Cost
$000s
UDR's Equity
Investment $000s
Est. Completion
Date
$901,175
19
Savoye2 – Addison, TX

Second phase of the Vitruvian ParkSM project,
completed in the first quarter of 2012

Spectacular views and immediate entrée into Vitruvian
Park with its spring-fed creek, water features, jogging
trails, picnic areas and 12-acres of open space

Deluxe one and two-bedroom luxury apartment homes
include California closets, open layouts with unique
floor plans and modern finishes

Anticipated LEED Certification
Scheduled Completion: 1Q12
2400 14th Street – Washington, D.C.

High-rise community under construction in the District
of Columbia; located across the street from newly
acquired View 14 community

Project is located in the U Street corridor, a magnet for
D.C.’s young professionals, within walking distance
of D.C. Metro subway stations, retail centers, and a
variety of dining and entertainment options

Anticipated LEED Certification
Scheduled Completion: 4Q12
20
Village at Bella Terra – Huntington Beach, CA

467-home community located in Huntington Beach,
CA

Located directly adjacent to the 770,000-square-foot
Bella Terra lifestyle center, which contains over 70
shops and restaurants, including Whole Foods, and
over 428,000 square feet of office space in the Towers
at Bella Terra

The development of Village at Bella Terra will deliver
the first market-rate rental product into the submarket
in over 20 years
Scheduled Completion: 2Q13
Mission Bay – San Francisco, CA

Located in the Mission Bay neighborhood of San
Francisco and directly adjacent to AT&T park and a half
mile from the Company’s Edgewater community

The mid-rise development is being built to meet LEED
Gold standards and will consist of 315 apartment
homes and 9,000 square feet of retail space
Scheduled Completion: 3Q13
21
Phase III Vitruvian ParkSM – Addison, TX

Third phase of the Vitruvian ParkSM project

Strategically designed and built with spectacular views
of Vitruvian Park including the amphitheater and grotto
fountain

Residents will enjoy best in-class amenities including
a wine room, a luxury fitness center, two pools and a
rooftop deck

Anticipated LEED Certification
Scheduled Completion: 3Q13
Los Alisos – Mission Viejo, CA

Community’s convenient location provides residents
with excellent access to freeways and job centers
across Orange County, Irvine and Santa Ana

Located directly adjacent to the site is Mission Foothill
Marketplace, an 110,000-square-foot retail center
Scheduled Completion: 4Q13
22
Lodge at Stoughton – Stoughton, MA

The 240-home community is well-located with easy
access to major transportation corridors

Situated near major job centers - approximately 1.5
million square feet of office space within 5 miles

Home amenities include black-on-black appliances,
slate tile flooring, custom color accent walls and
Espresso stained cabinetry

Community amenities include state-of-the-art fitness
center, resort style swimming pool, outdoor grilling
area playground and private screening room
Scheduled Completion: 2Q12
13th & Market – San Diego, CA

Located in the East Village neighborhood of downtown
San Diego, directly across the street from the planned
4-acre East Village Green public park

Walking distance to PETCO Park and only three blocks
from the UDR/MetLife Strata community

The 263-home, six story community includes 340
parking spaces as well as 20,000 square feet of
ground-level retail
Scheduled Completion: 3Q13
23
Domain College Park – College Park, MD

The 256-home community is located immediately
adjacent to The Robert H. Smith School of Business
at the University of Maryland in College Park, MD.

Land was purchased from the UDR/MetLife JV I

The community is expected to be the only privatelyowned, market-rate community located directly
adjacent to the University of Maryland campus
Beach Walk – Huntington Beach, CA

The 173 home, four-level community, is wrapped
around a five-level parking garage providing 288
parking spaces and approximately one mile from the
Pacific Ocean

Located directly across the street from the Newland
Center which contains numerous grocers and over 30
retail shops

Home amenities will include 9-foot ceilings, private
patios, granite countertops, stainless steel appliances
and walk-in closets
Scheduled Completion: 3Q13
Scheduled Completion: TBD
24
Redevelopment Pipeline
Strategy: Focus on generating strong risk-adjusted returns in key markets such as
Manhattan, Southern California, Northern California and Washington, D.C.
Community
Location
Barton Creek Landing
CitySouth
Marina Pointe
Rivergate
The Calvert
Pine Brook I & II
Villa Venetia
Total/Wtd. Avg.:
Austin, TX
San Mateo, CA
Marina del Rey, CA
Manhattan
Alexandria, VA
Costa Mesa, CA
Costa Mesa, CA
Homes
250
288
583
706
332
496
468
3,123
Budgeted
Cost $000s Cost per Home
$17,700
30,600
36,100
60,000
99,600
38,700
36,600
$319,300
$70,800
106,250
61,921
84,986
300,000
78,024
78,205
$102,241
Cost to
Date
$16,920
26,492
1,772
7,381
10
602
$53,177
Est. Completion
Date
2Q12
2Q12
2Q13
4Q13
1Q14
2Q14
2Q14
25
Redevelopment Pipeline
After Redevelopment
Before Redevelopment
CitySouth – San Mateo, CA
Budgeted Cost: $30.6 million
Scheduled Completion: 2Q12
Barton Creek Landing – Austin, TX
Budgeted Cost: $17.7 million
Scheduled Completion: 2Q12
26
Redevelopment Pipeline
Before Redevelopment
Marina Pointe – Marina del Rey, CA
Budgeted Cost: $36.1 million
Scheduled Completion: 2Q13
After Redevelopment
27
Redevelopment Pipeline
After Redevelopment
Before Redevelopment
The Calvert – Alexandria, VA
Budgeted Cost: $99.6 million
Scheduled Completion: 1Q14
Rivergate – Manhattan, NY
Budgeted Cost: $60.0 million
Scheduled Completion: 4Q13
28
Redevelopment Pipeline
Before Redevelopment
Pine Brook I & II – Costa Mesa, CA
Budgeted Cost: $38.7 million
Scheduled Completion: 2Q14
Villa Venetia – Costa Mesa, CA
Budgeted Cost: $36.6 million
Scheduled Completion: 2Q14
After Redevelopment
29
Forward-Looking Statement
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
expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve
estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual
results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors,
which include, but are not limited to, unfavorable changes in the apartment market, changing economic conditions, the
impact of inflation/deflation on rental rates and property operating expenses, expectations concerning availability of capital
and the stabilization of the capital markets, the impact of competition and competitive pricing, acquisitions, developments
and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups
on schedule, expectations on job growth, home affordability and demand/supply ratio for multifamily housing, expectations
concerning development and redevelopment activities, expectations on occupancy levels, expectations concerning the
Vitruvian ParkSM development, expectations concerning the joint ventures with third parties, expectations that automation
will help grow net operating income, expectations on annualized net operating income and other risk factors discussed in
documents filed by the Company with the Securities and Exchange Commission from time to time, including the
Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. Actual results may differ
materially from those described in the forward-looking statements. These forward-looking statements and such risks,
uncertainties and other factors speak only as of the date of this presentation, and the Company expressly disclaims any
obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the
Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any
such statement is based, except to the extent otherwise required under the U.S. securities laws.
This presentation and these forward-looking statements include UDR’s analysis and conclusions and reflect UDR’s
judgment as of the date of these materials. UDR assumes no obligation to revise or update to reflect future events or
circumstances.
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Notes
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Investor Relations Contact:
Chris Van Ens
[email protected]
720.348.7762