Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 25, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | UDR, Inc. | |
Entity Central Index Key | 74,208 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 267,573,214 | |
United Dominion Reality, L.P. | ||
Entity Information [Line Items] | ||
Entity Registrant Name | United Dominion Realty, L.P. | |
Entity Central Index Key | 1,018,254 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Real estate owned: | ||
Real estate held for investment | $ 9,423,191 | $ 9,271,847 |
Less: accumulated depreciation | (3,131,603) | (2,923,072) |
Real estate held for investment, net | 6,291,588 | 6,348,775 |
Real estate under development (net of accumulated depreciation of $428 and $0, respectively) | 465,301 | 342,282 |
Real estate held for disposition (net of accumulated depreciation of $0 and $553, respectively) | 1,071 | |
Total real estate owned, net of accumulated depreciation | 6,756,889 | 6,692,128 |
Cash and cash equivalents | 1,411 | 2,112 |
Restricted cash | 19,602 | 19,994 |
Notes receivable, net | 17,290 | 19,790 |
Investment in and advances to unconsolidated joint ventures, net | 843,167 | 827,025 |
Other assets | 129,575 | 118,535 |
Total assets | 7,767,934 | 7,679,584 |
Liabilities: | ||
Secured debt, net | 806,647 | 1,130,858 |
Unsecured debt, net | 2,828,001 | 2,270,620 |
Real estate taxes payable | 19,595 | 17,388 |
Accrued interest payable | 28,482 | 29,257 |
Security deposits and prepaid rent | 35,336 | 34,238 |
Distributions payable | 91,447 | 86,936 |
Accounts payable, accrued expenses, and other liabilities | 92,161 | 103,835 |
Total liabilities | 3,901,669 | 3,673,132 |
Commitments and contingencies (Note 12) | ||
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | 967,797 | 909,482 |
Equity: | ||
Common stock, $0.01 par value; 350,000,000 shares authorized: 267,557,894 and 267,259,469 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively | 2,676 | 2,673 |
Additional paid-in capital | 4,640,550 | 4,635,413 |
Distributions in excess of net income | (1,792,674) | (1,585,825) |
Accumulated other comprehensive income/(loss), net | (4,395) | (5,609) |
Total stockholders’ equity | 2,892,615 | 3,093,110 |
Noncontrolling interests | 5,853 | 3,860 |
Total equity | 2,898,468 | 3,096,970 |
Total liabilities and equity | 7,767,934 | 7,679,584 |
8.00% Series E Cumulative Convertible Preferred Stock | ||
Equity: | ||
Preferred stock, no par value; 50,000,000 shares authorized | 46,457 | 46,457 |
Series F | ||
Equity: | ||
Preferred stock, no par value; 50,000,000 shares authorized | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Real estate owned: | ||
Real estate under development accumulated depreciation | $ 428 | $ 0 |
Real estate held for disposition accumulated depreciation | $ 0 | $ 553 |
Equity: | ||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 267,557,894 | 267,259,469 |
Common stock, shares outstanding | 267,557,894 | 267,259,469 |
8.00% Series E Cumulative Convertible Preferred Stock | ||
Equity: | ||
Preferred stock, dividend rate percentage | 8.00% | 8.00% |
Preferred stock, shares issued | 2,796,903 | 2,796,903 |
Preferred stock, shares outstanding | 2,796,903 | 2,796,903 |
Series F | ||
Equity: | ||
Preferred stock, shares issued | 16,038,692 | 16,196,889 |
Preferred stock, shares outstanding | 16,038,692 | 16,196,889 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
REVENUES | ||||
Rental income | $ 244,658 | $ 236,168 | $ 485,929 | $ 468,125 |
Joint venture management and other fees | 3,321 | 2,618 | 5,891 | 5,476 |
Total revenues | 247,979 | 238,786 | 491,820 | 473,601 |
OPERATING EXPENSES: | ||||
Property operating and maintenance | 40,612 | 38,574 | 80,212 | 78,020 |
Real estate taxes and insurance | 29,423 | 30,279 | 59,611 | 58,656 |
Property management | 6,728 | 6,494 | 13,363 | 12,873 |
Other operating expenses | 2,369 | 1,892 | 4,060 | 3,644 |
Real estate depreciation and amortization | 108,450 | 105,937 | 213,482 | 211,276 |
General and administrative | 11,434 | 10,835 | 24,509 | 24,679 |
Casualty-related charges/(recoveries), net | 1,191 | 1,629 | 1,693 | 1,629 |
Other depreciation and amortization | 1,567 | 1,486 | 3,175 | 3,039 |
Total operating expenses | 201,774 | 197,126 | 400,105 | 393,816 |
Operating income | 46,205 | 41,660 | 91,715 | 79,785 |
Income/(loss) from unconsolidated entities | (1,426) | 325 | 9,772 | 1,004 |
Interest expense | (33,866) | (30,678) | (64,405) | (61,782) |
Interest income and other income/(expense), net | 515 | 540 | 942 | 971 |
Income/(loss) before income taxes and gain/(loss) on sale of real estate owned | 11,428 | 11,847 | 38,024 | 19,978 |
Tax (provision)/benefit, net | (366) | 402 | (698) | 805 |
Income/(loss) from continuing operations | 11,062 | 12,249 | 37,326 | 20,783 |
Gain/(loss) on sale of real estate owned, net of tax | 7,315 | 2,132 | 10,385 | |
Net income/(loss) | 11,062 | 19,564 | 39,458 | 31,168 |
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | (854) | (1,610) | (3,192) | (2,515) |
Net (income)/loss attributable to noncontrolling interests | (51) | (8) | (142) | (314) |
Net income/(loss) attributable to UDR, Inc. | 10,157 | 17,946 | 36,124 | 28,339 |
Distributions to preferred stockholders — Series E (Convertible) | (929) | (929) | (1,858) | (1,858) |
Net income/(loss) attributable to common stockholders | $ 9,228 | $ 17,017 | $ 34,266 | $ 26,481 |
Common distributions declared per share | $ 0.310 | $ 0.295 | $ 0.620 | $ 0.590 |
Income/(loss) per weighted average common share - basic | 0.03 | 0.06 | 0.13 | 0.10 |
Income/(loss) per weighted average common share - diluted | $ 0.03 | $ 0.06 | $ 0.13 | $ 0.10 |
Weighted average number of common shares outstanding — Basic | 266,972 | 266,268 | 266,881 | 264,362 |
Weighted average number of common shares outstanding — diluted | 268,859 | 268,174 | 268,742 | 266,227 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income / (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) | $ 11,062 | $ 19,564 | $ 39,458 | $ 31,168 |
Other comprehensive income/(loss), including portion attributable to noncontrolling interests: | ||||
Unrealized holding gain/(loss) | (507) | (1,963) | 126 | (2,774) |
(Gain)/loss reclassified into earnings from other comprehensive income/(loss) | 390 | 943 | 1,209 | 1,878 |
Other comprehensive income/(loss), including portion attributable to noncontrolling interests | (117) | (1,020) | 1,335 | (896) |
Comprehensive income/(loss) | 10,945 | 18,544 | 40,793 | 30,272 |
Comprehensive (income)/loss attributable to noncontrolling interests | (897) | (1,537) | (3,455) | (2,229) |
Comprehensive income/(loss) attributable to UDR, Inc. | $ 10,048 | $ 17,007 | $ 37,338 | $ 28,043 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands | Preferred Stock | Common Stock | Paid-in Capital | Distributions in Excess of Net Income | Accumulated Other Comprehensive Income/(Loss), net | Noncontrolling Interest | Total |
Beginning Balance at Dec. 31, 2016 | $ 46,458 | $ 2,673 | $ 4,635,413 | $ (1,585,825) | $ (5,609) | $ 3,860 | $ 3,096,970 |
Consolidated Statements of Changes in Equity | |||||||
Net income/(loss) attributable to UDR, Inc. | 36,124 | 36,124 | |||||
Net income/(loss) attributable to noncontrolling interests | 141 | 141 | |||||
Contribution of noncontrolling interest in consolidated real estate | 125 | 125 | |||||
Long Term Incentive Plan Unit grants/(vesting), net | 1,727 | 1,727 | |||||
Other comprehensive income/(loss) | 1,214 | 1,214 | |||||
Issuance/(forfeitures) of common and restricted shares, net | 1 | (1,554) | (1,553) | ||||
Adjustment for conversion of noncontrolling interest of unitholders in the Operating Partnership and DownREIT Partnership | 2 | 6,133 | 6,135 | ||||
Common stock distributions declared ($0.620 per share) | (165,941) | (165,941) | |||||
Preferred stock distributions declared-Series E ($0.6644 per share) | (1,858) | (1,858) | |||||
Adjustment to reflect redemption value of redeemable noncontrolling interests | (74,616) | (74,616) | |||||
Ending Balance at Jun. 30, 2017 | $ 46,458 | $ 2,676 | 4,640,550 | (1,792,674) | $ (4,395) | $ 5,853 | $ 2,898,468 |
Consolidated Statements of Changes in Equity | |||||||
Cumulative effect upon adoption of ASU 2016-09 | ASU 2016-09 | $ 558 | $ (558) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) | 6 Months Ended |
Jun. 30, 2017$ / shares | |
Common distributions declared per share | $ 0.620 |
8.00% Series E Cumulative Convertible Preferred Stock | |
Preferred stock distributions declared | $ 0.6644 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating Activities | ||
Net income/(loss) | $ 39,458 | $ 31,168 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||
Depreciation and amortization | 216,657 | 214,315 |
(Gain)/loss on sale of real estate owned, net of tax | (2,132) | (10,385) |
Tax (provision)/benefit, net | 698 | (805) |
(Income)/loss from unconsolidated entities | (9,772) | (1,004) |
Return on investment in unconsolidated joint ventures | 2,669 | 1,953 |
Amortization of share-based compensation | 6,833 | 7,075 |
Other | 10,929 | 5,562 |
Changes in operating assets and liabilities: | ||
(Increase)/decrease in operating assets | (9,302) | (8,551) |
Increase/(decrease) in operating liabilities | (16,040) | (12,858) |
Net cash provided by/(used in) operating activities | 239,998 | 226,470 |
Investing Activities | ||
Acquisition of real estate assets | (65,381) | (17,235) |
Proceeds from sales of real estate investments, net | 3,250 | 21,943 |
Development of real estate assets | (128,433) | (66,138) |
Capital expenditures and other major improvements — real estate assets, net of escrow reimbursement | (51,298) | (49,112) |
Capital expenditures — non-real estate assets | (2,043) | (1,941) |
Investment in unconsolidated joint ventures | (67,509) | (20,635) |
Distributions received from unconsolidated joint ventures | 26,210 | 13,663 |
Repayment/(issuance) of notes receivable | 2,500 | (3,000) |
Net cash provided by/(used in) investing activities | (282,704) | (122,455) |
Financing Activities | ||
Payments on secured debt | (324,118) | (145,499) |
Proceeds from the issuance of secured debt | 25,000 | |
Payments on unsecured debt | (95,053) | |
Proceeds from the issuance of unsecured debt | 539,292 | |
Net proceeds/(repayment) of revolving bank debt | 18,708 | 109,199 |
Proceeds from the issuance of common shares through public offering, net | 173,283 | |
Distributions paid to redeemable noncontrolling interests | (15,385) | (14,624) |
Distributions paid to preferred stockholders | (1,858) | (1,858) |
Distributions paid to common stockholders | (161,840) | (151,512) |
Other | (12,794) | (4,526) |
Net cash provided by/(used in) financing activities | 42,005 | (105,590) |
Net increase/(decrease) in cash and cash equivalents | (701) | (1,575) |
Cash and cash equivalents, beginning of period | 2,112 | 6,742 |
Cash and cash equivalents, end of period | 1,411 | 5,167 |
Supplemental Information: | ||
Interest paid during the period, net of amounts capitalized | 66,047 | 64,793 |
Cash paid/(refunds received) for income taxes | 1,641 | 852 |
Non-cash transactions: | ||
Transfer of investment in and advances to unconsolidated joint ventures to real estate owned | 32,260 | 11,526 |
Vesting of LTIP Units | 2,317 | |
Development costs and capital expenditures incurred but not yet paid | 49,295 | 42,940 |
Conversion of Operating Partnership and DownREIT Partnership noncontrolling interests to common stock (168,804 shares in 2017 and 2,080 shares in 2016) | 6,135 | 81 |
Dividends declared but not yet paid | $ 91,447 | $ 86,936 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Non-cash transactions: | ||
Conversion of OP Units into common shares | 168,804 | 2,080 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION Basis of Presentation UDR, Inc., collectively with our consolidated subsidiaries (“UDR,” the “Company,” “we,” “our,” or “us”), is a self-administered real estate investment trust, or REIT, that owns, operates, acquires, renovates, develops, redevelops, and manages apartment communities. The accompanying consolidated financial statements include the accounts of UDR and its subsidiaries, including United Dominion Realty, L.P. (the “Operating Partnership” or the “OP”) and UDR Lighthouse DownREIT L.P. (the “DownREIT Partnership”). As of June 30, 2017, there were 183,350,924 units in the Operating Partnership ("OP Units") outstanding, of which 174,233,691 OP Units, or 95.0%, were owned by UDR and 9,117,233 OP Units, or 5.0%, were owned by outside limited partners. As of June 30, 2017, there were 32,367,380 units in the DownREIT Partnership (“DownREIT Units”) outstanding, of which 16,650,211, or 51.4%, were owned by UDR (including 13,470,651 DownREIT Units, or 41.6%, that were held by the Operating Partnership) and 15,717,169, or 48.6%, were owned by outside limited partners. The consolidated financial statements of UDR include the noncontrolling interests of the unitholders in the Operating Partnership and DownREIT Partnership. The accompanying interim unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments and eliminations necessary for the fair presentation of our financial position as of June 30, 2017, and results of operations for the three and six months ended June 30, 2017 and 2016 have been included. Such adjustments are normal and recurring in nature. The interim results presented are not necessarily indicative of results that can be expected for a full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2016 appearing in UDR’s Annual Report on Form 10‑K, filed with the Securities and Exchange Commission on February 21, 2017. The accompanying interim unaudited consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the interim unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company evaluated subsequent events through the date its financial statements were issued. No significant recognized or non-recognized subsequent events were noted. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017‑01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The ASU changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for the Company on January 1, 2018; early adoption is permitted. The ASU will be applied prospectively to any transactions occurring within the period of adoption. The Company expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In November 2016, the FASB issued ASU 2016‑18, Statement of Cash Flows (Topic 230), Restricted Cash . The ASU addresses the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments . The ASU addresses specific cash flow items with the objective of reducing existing diversity in practice, including the treatment of distributions received from equity method investees. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company elected to early adopt ASU 2016‑15 in 2016 and elected to classify distributions received from equity method investees using the cumulative earnings approach. No prior period amounts required adjustment as a result of the adoption. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The standard requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and to present the net amount of the financial instrument expected to be collected. The updated standard will be effective for the Company on January 1, 2020; early adoption is permitted on January 1, 2019. The Company is currently evaluating the effect that the updated standard will have on the consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016‑09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting . The ASU aims to simplify the accounting for share-based payments by amending the accounting for forfeitures, statutory tax withholding requirements, classification in the statements of cash flow and income taxes. The updated standard was effective for the Company on January 1, 2017, at which time the Company prospectively began accounting for forfeitures as incurred and began applying the updated rules for statutory withholdings. As a result of adopting the ASU, the Company recorded a one-time adjustment for existing estimated forfeitures of $0.6 million as of January 1, 2017 to Distributions in Excess of Net Income on January 1, 2017. In February 2016, the FASB issued ASU No. 2016‑02, Leases . The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. Full retrospective application is prohibited. The standard will be effective for the Company on January 1, 2019, with early adoption permitted. While the Company is currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures, we expect to recognize right-of-use assets and related lease liabilities on our consolidated balance sheets related to ground leases on any communities where we are the lessee. In May 2014, the FASB issued ASU No. 2014‑09, Revenue from Contracts with Customers . The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, including industry-specific revenue guidance. The standard specifically excludes lease contracts. The ASU allows for the use of either the full or modified retrospective transition method and will be effective for the Company on January 1, 2018, at which time the Company expects to adopt the updated standard using the modified retrospective approach. However, as the majority of the Company’s revenue is from rental income related to leases, the Company does not expect the ASU to have a material impact on the consolidated financial statements and related disclosures. Principles of Consolidation The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Company first evaluates whether each entity is a variable interest entity ("VIE"). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. Discontinued Operations In accordance with GAAP, a discontinued operation represents (1) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (2) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (1) a separate major line of business, (2) a separate major geographic area of operations, (3) a major equity method investment, or (4) other major parts of an entity. We record sales of real estate that do not meet the definition of a discontinued operation in Gain/(loss) on sale of real estate owned, net of tax on the Consolidated Statements of Operations. Revenue and Real Estate Sales Gain Recognition Rental income related to leases is recognized on an accrual basis when due from residents and tenants in accordance with GAAP. Rental payments are generally due on a monthly basis and recognized when earned. The Company recognizes interest income, management and other fees and incentives when earned, and the amounts are fixed and determinable. For sale transactions meeting the requirements for full accrual profit recognition, we remove the related assets and liabilities from our Consolidated Balance Sheets and record the gain or loss in the period the transaction closes. For sale transactions that do not meet the full accrual sale criteria due to our continuing involvement, we evaluate the nature of the continuing involvement and account for the transaction under an alternate method of accounting. Unless certain limited criteria are met, non-monetary transactions, including property exchanges, are accounted for at fair value. Sales to entities in which we retain or otherwise own an interest are accounted for as partial sales. If all other requirements for recognizing profit under the full accrual method have been satisfied and no other forms of continuing involvement are present, we recognize profit proportionate to the outside interest of the buyer and defer the gain on the interest we retain. The Company recognizes any deferred gain when the property is sold to a third party. In transactions accounted for by us as partial sales, we determine if the buyer of the majority equity interest in the venture was provided a preference as to cash flows in either an operating or a capital waterfall. If a cash flow preference has been provided, we recognize profit only to the extent that proceeds from the sale of the majority equity interest exceed costs related to the entire property. Notes Receivable The following table summarizes our notes receivable, net as of June 30, 2017 and December 31, 2016 ( dollars in thousands): Interest rate at Balance Outstanding June 30, June 30, December 31, 2017 2017 2016 Note due February 2020 (a) 10.00 % $ 12,994 $ 12,994 Note due July 2017 (b) — % — 2,500 Note due October 2020 (c) 8.00 % 1,296 1,296 Note due April 2021 (d) 10.00 % 3,000 3,000 Total notes receivable, net $ 17,290 $ 19,790 (a) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $13.0 million. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the eighth anniversary of the date of the note (February 2020). (b) At December 31, 2016, the Company had a secured note receivable with an unaffiliated third party with an aggregate commitment of $2.5 million. The outstanding balance was paid in full during the six months ended June 30, 2017. (c) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $2.0 million, of which, $1.3 million has been funded. Interest payments are due when the loan matures. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $10.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (October 2020). (d) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $15.0 million, of which, $3.0 million has been funded. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $25.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (April 2021). The Company recognized $0.5 million and $0.5 million of interest income from notes receivable during the three months ended June 30, 2017 and 2016, respectively, and $0.9 million and $0.8 million during the six months ended June 30, 2017 and 2016, respectively, none of which was related party interest income. Interest income is included in Interest income and other income/(expense), net on the Consolidated Statements of Operations. Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to stockholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three and six months ended June 30, 2017 and 2016, the Company’s other comprehensive income/(loss) consisted of the gain/(loss) (effective portion) on derivative instruments that are designated as and qualify as cash flow hedges, (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) into earnings, and the allocation of other comprehensive income/(loss) to noncontrolling interests. The (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) is included in Interest expense on the Consolidated Statements of Operations. See Note 10, Derivatives and Hedging Activity, for further discussion. The allocation of other comprehensive income/(loss) to redeemable noncontrolling interests during the three months ended June 30, 2017 and 2016 was less than $(0.1) million and $(0.1) million, respectively, and during the six months ended June 30, 2017 and 2016 was $0.1 million and $(0.6) million, respectively. Income Taxes Due to the structure of the Company as a REIT and the nature of the operations for the operating properties, no provision for federal income taxes has been provided for at UDR. Historically, the Company has generally incurred only state and local excise and franchise taxes. UDR has elected for certain consolidated subsidiaries to be treated as taxable REIT subsidiaries (“TRS”). Income taxes for our TRS are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. The Company’s deferred tax assets are generally the result of differing depreciable lives on capitalized assets and timing of expense recognition for certain accrued liabilities. As of June 30, 2017 and December 31, 2016, UDR’s net deferred tax asset was $0.3 million and $0.6 million, respectively. GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition. The Company recognizes its tax positions and evaluates them using a two-step process. First, UDR determines whether a tax position is more likely than not (greater than 50 percent probability to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. UDR had no material unrecognized tax benefit, accrued interest or penalties at June 30, 2017. UDR and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The tax years 2013 through 2016 remain open to examination by tax jurisdictions to which we are subject. When applicable, UDR recognizes interest and/or penalties related to uncertain tax positions in Tax (provision)/benefit, net on the Consolidated Statements of Operations. |
Real Estate Owned
Real Estate Owned | 6 Months Ended |
Jun. 30, 2017 | |
REAL ESTATE OWNED | |
REAL ESTATE OWNED | 3. REAL ESTATE OWNED Real estate assets owned by the Company consist of income producing operating properties, properties under development, land held for future development, and sold or held for disposition properties. As of June 30, 2017, the Company owned and consolidated 128 communities in 10 states plus the District of Columbia totaling 39,822 apartment homes. The following table summarizes the carrying amounts for our real estate owned (at cost) as of June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Land $ 1,788,391 $ 1,801,576 Depreciable property — held and used: Land improvements 183,796 178,701 Building, improvements, and furniture, fixtures and equipment 7,451,004 7,291,570 Under development: Land and land improvements 111,028 111,028 Building, improvements, and furniture, fixtures and equipment 354,701 231,254 Real estate held for disposition: Land and land improvements — 1,104 Building, improvements, and furniture, fixtures and equipment — 520 Real estate owned 9,888,920 9,615,753 Accumulated depreciation (3,132,031) (2,923,625) Real estate owned, net $ 6,756,889 $ 6,692,128 Acquisitions During the six months ended June 30, 2017, the Company exercised its fixed-price option to purchase its joint venture partner’s ownership interest in a 244 home operating community in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $66.0 million. As a result, the Company consolidated the operating community. The Company had previously accounted for its 49% ownership interest as a preferred equity investment in an unconsolidated joint venture (see Note 5, Joint Ventures and Partnerships ). As a result of the consolidation, the Company increased its real estate owned by approximately $97.0 million, recorded approximately $1.7 million of in-place lease intangibles and recorded a gain on consolidation of $12.2 million, which is included in Income/(loss) from unconsolidated entities on the Consolidated Statements of Operations. Dispositions During the six months ended June 30, 2017, the Company sold a parcel of land in Richmond, Virginia for gross proceeds of $3.5 million, resulting in net proceeds of $3.3 million and a gain of $2.1 million. Other Activity Predevelopment, development, and redevelopment projects and related costs are capitalized and reported on the Consolidated Balance Sheets as Total real estate owned, net of accumulated depreciation . The Company capitalizes costs directly related to the predevelopment, development, and redevelopment of a capital project, which include, but are not limited to, interest, real estate taxes, insurance, and allocated development and redevelopment overhead related to support costs for personnel working on the capital projects. We use our professional judgment in determining whether such costs meet the criteria for capitalization or must be expensed as incurred. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress and such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. These costs, excluding the direct costs of development and redevelopment and capitalized interest, were $1.7 million and $2.7 million for the three months ended June 30, 2017 and 2016, respectively, and $4.4 million and $4.7 million for the six months ended June 30, 2017 and 2016, respectively. Total interest capitalized was $4.6 million and $3.8 million for the three months ended June 30, 2017 and 2016, respectively, and $9.4 million and $8.0 million for the six months ended June 30, 2017 and 2016, respectively. As each home in a capital project is completed and becomes available for lease-up, the Company ceases capitalization on the related portion and depreciation commences over the estimated useful life. In connection with the acquisition of certain properties, the Company agreed to pay certain of the tax liabilities of certain contributors if the Company sells one or more of the properties contributed in a taxable transaction prior to the expiration of specified periods of time following the acquisition. The Company may, however, sell, without being required to pay any tax liabilities, any of such properties in a non-taxable transaction, including, but not limited to, in an exchange under Section 1031 of the Internal Revenue Code. Further, the Company has agreed to maintain certain debt that may be guaranteed by certain contributors for specified periods of time following the acquisition. The Company, however, has the ability to refinance or repay guaranteed debt or to substitute new debt if the debt and the guaranty continue to satisfy certain conditions. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2017 | |
JOINT VENTURES AND PARTNERSHIPS | |
VARIABLE INTEREST ENTITIES | 4. VARIABLE INTEREST ENTITIES The Company has determined that the Operating Partnership and DownREIT Partnership are VIEs as the limited partners lack substantive kick-out rights and substantive participating rights. The Company has concluded that it is the primary beneficiary of, and therefore consolidates the Operating Partnership and DownREIT Partnership based on its role as the sole general partner of the Operating Partnership and DownREIT Partnership. The Company’s role as community manager and its equity interests give us the power to direct the activities that most significantly impact the economic performance and the obligation to absorb potentially significant losses or the right to receive potentially significant benefits of the Operating Partnership and DownREIT Partnership. See the consolidated financial statements of the Operating Partnership presented within this Report and Note 4, Unconsolidated Entities , to the Operating Partnership’s consolidated financial statements for the results of operations of the DownREIT Partnership. |
Joint Ventures and Partnerships
Joint Ventures and Partnerships | 6 Months Ended |
Jun. 30, 2017 | |
JOINT VENTURES AND PARTNERSHIPS | |
JOINT VENTURES AND PARTNERSHIPS | 5. JOINT VENTURES AND PARTNERSHIPS UDR has entered into joint ventures and partnerships with unrelated third parties to acquire real estate assets that are either consolidated and included in Real estate owned on the Consolidated Balance Sheets or are accounted for under the equity method of accounting, and are included in Investment in and advances to unconsolidated joint ventures, net , on the Consolidated Balance Sheets. The Company consolidates the entities that we control as well as any variable interest entity where we are the primary beneficiary. Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. UDR’s joint ventures and partnerships are funded with a combination of debt and equity. Our losses are limited to our investment and except as noted below, the Company does not guarantee any debt, capital payout or other obligations associated with our joint ventures and partnerships. The Company recognizes earnings or losses from our investments in unconsolidated joint ventures and partnerships consisting of our proportionate share of the net earnings or losses of the joint ventures and partnerships. In addition, we may earn fees for providing management services to the unconsolidated joint ventures and partnerships. The following table summarizes the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net, which are accounted for under the equity method of accounting as of June 30, 2017 and December 31, 2016 (dollars in thousands) : Number of Number of Apartment Properties Homes Investment at UDR’s Ownership Interest Location of June 30, June 30, June 30, December 31, June 30, December 31, Joint Venture Properties 2017 2017 2017 2016 2017 2016 Operating and development: UDR/MetLife I Los Angeles, CA 1 development community (a) 150 $ 34,416 $ 25,209 50.0 % 50.0 % UDR/MetLife II (b) Various 18 operating communities 4,059 309,586 311,282 50.0 % 50.0 % Other UDR/MetLife Development Joint Ventures Various 2 operating community; 1,437 142,363 160,979 50.6 % 50.6 % 3 development communities (a) UDR/MetLife Vitruvian Park ® Addison, TX 3 operating communities; 1,513 73,317 72,414 50.0 % 50.0 % 1 development community (a); 5 land parcels UDR/KFH Washington, D.C. 3 operating communities 660 10,991 12,835 30.0 % 30.0 % Investment in and advances to unconsolidated joint ventures, net, before participating loan investment, preferred equity investments and other investments $ 570,673 $ 582,719 Income from investments Investment at Three Months Ended Six Months Ended Years To UDR June 30, December 31, June 30, June 30, Location Rate Maturity Commitment 2017 2016 2017 2016 2017 2016 Participating loan investment: Steele Creek Denver, CO 6.5 % 0.3 $ 93,458 $ 93,984 $ 94,003 $ 1,550 $ 1,560 $ 3,083 $ 3,079 Preferred equity investments: West Coast Development Joint Ventures (c) Various 6.5 % (c) N/A — 161,552 150,303 773 1,409 13,539 3,198 1532 Harrison (d) San Francisco, CA 11.0 % 5.0 24,645 6,398 — 2 — 2 — Other investments: The Portals (e) Washington, DC 11.0 % 4.0 $ 38,559 10,560 — $ 16 $ — $ 16 $ — Total investment in and advances to unconsolidated joint ventures, net $ 843,167 $ 827,025 (a) The number of apartment homes for the communities under development presented in the table above is based on the projected number of total homes upon completion of development. As of June 30, 2017, 726 apartment homes had been completed in Other UDR/MetLife Development Joint Ventures, and no apartment homes had been completed in UDR/MetLife I or in UDR/MetLife Vitruvian Park ® . (b) In September 2015, the 717 Olympic community, which is owned by the UDR/MetLife II joint venture, experienced extensive water damage due to a ruptured water pipe. For the six months ended June 30, 2017 and 2016, the Company recorded casualty-related charges/(recoveries) of $0.9 million and $(1.1) million, respectively, representing its proportionate share of the total charges/(recoveries) recognized. (c) In May 2015, the Company entered into a joint venture agreement with an unaffiliated joint venture partner and agreed to pay $136.3 million for a 48% ownership interest in a portfolio of five communities that were under construction. The communities are located in three of the Company’s core, coastal markets: Seattle, Washington, Los Angeles and Orange County, California. UDR earns a 6.5% preferred return on its investment through each individual community’s date of stabilization, defined as when a community reaches 80% occupancy for 90 consecutive days, while the joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization, income and expense are shared based on each partner’s ownership percentage and the Company no longer receives a 6.5% preferred return on its investment in the stabilized community. The Company serves as property manager and earns a management fee during the lease-up phase and subsequent operation of each of the communities. The unaffiliated joint venture partner is the general partner of the joint venture and the developer of the communities. At inception of the agreement, the Company had a fixed-price option to acquire the remaining interest in each community beginning one year after completion. If the options are exercised for all five communities, the Company’s total purchase price will be $597.4 million. In the event the Company does not exercise its options to purchase at least two communities, the unaffiliated joint venture partner will be entitled to earn a contingent disposition fee equal to a 6.5% return on its implied equity in the communities not acquired. The unaffiliated joint venture partner is providing certain guaranties and there are construction loans on all five communities. During the six months ended June 30, 2017, the Company exercised its fixed-price option to purchase the joint venture partner’s ownership interest in one of the five communities, a 244 home operating community in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $66.0 million. As a result, the Company consolidated the operating community and it is no longer accounted for as a preferred equity investment in an unconsolidated joint venture (see Note 3, Real Estate Owned ). As a result of the consolidation, the Company recorded a gain on consolidation of $12.2 million, which is included in Income/(loss) from unconsolidated entities on the Consolidated Statements of Operations. As of June 30, 2017, construction was completed on three of the four remaining communities. Two of the four remaining communities had achieved stabilization. The other two completed communities have not achieved stabilization and the Company continues to receive a 6.5% preferred return on its investment in those communities. In March 2017 and May 2017, the Company entered into two additional joint venture agreements with the unaffiliated joint venture partner and agreed to pay $15.5 million for a 49% ownership interest in a 155 home community that is currently under construction in Seattle, Washington and $16.1 million for a 49% ownership interest in a 276 home community that is currently under construction in Hillsboro, Oregon (together with the May 2015 joint venture described above, the “West Coast Development Joint Ventures”). Consistent with the terms of the May 2015 joint venture agreement, UDR earns a 6.5% preferred return on its investments through the communities’ date of stabilization, as defined above, while our joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization of the communities, income and expense will be shared based on each partner’s ownership percentage and the Company will no longer receive a 6.5% preferred return on its investment. The Company will serve as property manager and will earn a management fee during the lease-up phase and subsequent operation of the stabilized communities. The unaffiliated joint venture partner is the general partner and the developer of the communities. The Company has concluded it does not control the joint ventures and accounts for them under the equity method of accounting. The Company has a fixed-price option to acquire the remaining interest in the communities beginning one year after completion for a total price of $61.3 million and $72.3 million, respectively. The unaffiliated joint venture partner is providing certain guaranties and there are construction loans on the communities. The Company’s recorded equity investment in the West Coast Development Joint Ventures at June 30, 2017 and December 31, 2016 of $ 161.6 million and $1 50.3 million, respectively, is inclusive of outside basis costs and our accrued but unpaid preferred return. (d) In June 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 136 apartment home community in San Francisco, California. The Company’s preferred equity investment of up to $24.6 million will earn a preferred return of 11.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. As of June 30, 2017, the Company had contributed approximately $6.4 million to the joint venture. The Company has concluded it does not control the joint venture and accounts for it under the equity method of accounting. (e) In May 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner. The joint venture has made a mezzanine loan to a third-party developer of a 373 apartment home community in Washington, D.C. The unaffiliated joint venture partner is the managing member of the joint venture. The mezzanine loan is for up to $71.0 million at an interest rate of 13.5% per annum and carries a term of four years with one, 12-month extension option. The Company’s investment commitment to the joint venture is approximately $38.6 million and earns a weighted average return rate of approximately 11.0% per annum. As of June 30, 2017, the Company had contributed approximately $10.6 million to the joint venture. The Company has concluded it does not control the joint venture and accounts for it under the equity method of accounting. As of June 30, 2017 and December 31, 2016, the Company had deferred fees of $10.3 million and $9.5 million, respectively, which will be recognized through earnings over the weighted average life of the related properties, upon the disposition of the properties to a third party, or upon completion of certain development obligations. The Company recognized management fees of $3.3 million and $2.6 million for the three months ended June 30, 2017 and 2016, respectively, and $5.9 million and $5.4 million for the six months ended June 30, 2017 and 2016, respectively, for our management of the communities held by the joint ventures and partnerships. The management fees are included in Joint venture management and other fees on the Consolidated Statements of Operations. The Company may, in the future, make additional capital contributions to certain of our joint ventures and partnerships should additional capital contributions be necessary to fund acquisitions or operations. We evaluate our investments in unconsolidated joint ventures and partnerships when events or changes in circumstances indicate that there may be an other-than-temporary decline in value. We consider various factors to determine if a decrease in the value of the investment is other-than-temporary. The Company did not recognize any other-than-temporary decreases in the value of its investments in unconsolidated joint ventures or partnerships during the three and six months ended June 30, 2017 and 2016. Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of June 30, 2017 and December 31, 2016 ( dollars in thousands ): June 30, December 31, 2017 2016 Total real estate, net $ 2,912,814 $ 2,901,067 Cash and cash equivalents 33,523 32,503 Other assets 21,295 19,047 Total assets $ 2,967,632 $ 2,952,617 Amount due to/(from) UDR $ 1,530 $ 521 Third party debt, net 1,837,639 1,794,379 Accounts payable and accrued liabilities 66,197 66,931 Total liabilities $ 1,905,366 $ 1,861,831 Total equity $ 1,062,266 $ 1,091,326 Combined summary financial information relating to the unconsolidated joint ventures ’ and partnerships ’ operations (not just our proportionate share) is presented below for the three and six months ended June 30, 2017 and 2016 ( dollars in thousands ) : Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Total revenues $ 61,175 $ 58,153 $ 119,699 $ 113,190 Property operating expenses (22,836) (22,981) (44,670) (46,394) Real estate depreciation and amortization (24,785) (21,770) (48,117) (40,713) Operating income/(loss) 13,554 13,402 26,912 26,083 Interest expense (18,949) (17,005) (36,640) (33,184) Other income/(expense) — (2) — (4) Net income/(loss) $ (5,395) $ (3,605) $ (9,728) $ (7,105) |
Secured and Unsecured Debt, Net
Secured and Unsecured Debt, Net | 6 Months Ended |
Jun. 30, 2017 | |
SECURED AND UNSECURED DEBT, NET | |
SECURED AND UNSECURED DEBT, NET | 6. SECURED AND UNSECURED DEBT, NET The following is a summary of our secured and unsecured debt at June 30, 2017 and December 31, 2016 ( dollars in thousands ): Principal Outstanding As of June 30, 2017 Weighted Weighted Average Average Number of June 30, December 31, Interest Years to Communities 2017 2016 Rate Maturity Encumbered Secured Debt: Fixed Rate Debt Mortgage notes payable (a) $ 399,315 $ 402,996 4.04 % 5.8 7 Fannie Mae credit facilities (b) 285,836 355,836 4.86 % 2.5 8 Deferred financing costs (1,934) (2,681) Total fixed rate secured debt, net 683,217 756,151 4.39 % 4.4 15 Variable Rate Debt Tax-exempt secured notes payable (c) 94,700 94,700 1.54 % 5.7 2 Fannie Mae credit facilities (b) 29,034 280,946 2.61 % 1.4 1 Deferred financing costs (304) (939) Total variable rate secured debt, net 123,430 374,707 1.79 % 4.7 3 Total Secured Debt, net 806,647 1,130,858 3.99 % 4.5 18 Unsecured Debt: Variable Rate Debt Borrowings outstanding under unsecured credit facility due January 2020 (d) (i) — — — % 2.6 Borrowings outstanding under unsecured commercial paper program due July 2017 (e) (i) 240,000 — 1.49 % 0.1 Borrowings outstanding under unsecured working capital credit facility due January 2019 (f) 40,058 21,350 2.12 % 1.5 Term Loan Facility due January 2021 (d) (i) 35,000 35,000 2.00 % 3.6 Fixed Rate Debt 4.25% Medium-Term Notes due June 2018 (net of discounts of $394 and $608, respectively) (i) 299,606 299,392 4.25 % 0.9 3.70% Medium-Term Notes due October 2020 (net of discounts of $26 and $30, respectively) (i) 299,974 299,970 3.70 % 3.3 1.98% Term Loan Facility due January 2021 (d) (i) 315,000 315,000 1.98 % 3.6 4.63% Medium-Term Notes due January 2022 (net of discounts of $1,625 and $1,805, respectively) (i) 398,375 398,195 4.63 % 4.5 3.75% Medium-Term Notes due July 2024 (net of discounts of $730 and $782, respectively) (i) 299,270 299,218 3.75 % 7.0 8.50% Debentures due September 2024 15,644 15,644 8.50 % 7.2 4.00% Medium-Term Notes due October 2025 (net of discounts of $568 and $602, respectively) (g) (i) 299,432 299,398 4.00 % 8.3 2.95% Medium-Term Notes due September 2026 (i) 300,000 300,000 2.95 % 9.2 3.50% Medium-Term Notes due July 2027 (net of discounts of $705 and $0, respectively) (h) (i) 299,295 — 3.50 % 10.0 Other 20 21 Deferred financing costs (13,673) (12,568) Total Unsecured Debt, net 2,828,001 2,270,620 3.49 % 5.2 Total Debt, net $ 3,634,648 $ 3,401,478 3.67 % 5.1 For purposes of classification of the above table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument. Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. As of June 30, 2017, secured debt encumbered $1.7 billion or 16.9% of UDR’s total real estate owned based upon gross book value ($8.2 billion or 83.1% of UDR’s real estate owned based on gross book value is unencumbered). (a) At June 30, 2017, fixed rate mortgage notes payable are generally due in monthly installments of principal and interest and mature at various dates from May 2019 through November 2026 and carry interest rates ranging from 3.15% to 5.86%. The Company will from time to time acquire properties subject to fixed rate debt instruments. In those situations, the Company records the debt at its estimated fair value and amortizes any difference between the fair value and par value to interest expense over the life of the underlying debt instrument. During the three months ended June 30, 2017 and 2016, the Company had $0.7 million and $0.7 million, respectively, and during the six months ended June 30, 2017 and 2016, the Company had $1.5 million and $ 1.5 million, respectively, of amortization of the fair market adjustment of debt assumed in the acquisition of properties,which was included in Interest expense on the Consolidated Statements of Operations. The unamortized fair market adjustment was a net premium of $9.7 million and $11.2 million at June 30, 2017 and December 31, 2016, respectively. (b) UDR had two secured credit facilities with Fannie Mae with an aggregate commitment of $314.9 million at June 30, 2017. The Fannie Mae credit facilities mature at various dates from December 201 8 through July 2020 and bear interest at floating and fixed rates. At June 30, 2017, $285.8 million of the outstanding balance was fixed and had a weighted average interest rate of 4.86% and the remaining balance of $29.0 million had a weighted average variable interest rate of 2.61%. During the six months ended June 30, 2017, the Company prepaid $275.3 million of its secured credit facilities with borrowings under the Company’s unsecured commercial paper program and proceeds from the issuance of senior unsecured medium-term notes. The Company incurred prepayment costs of $4.3 million and $5.8 million during the three and six months ended June 30, 2017, respectively, which were included in Interest expense on the Consolidated Statements of Operations. Further information related to these credit facilities is as follows (dollars in thousands) : June 30, December 31, 2017 2016 Borrowings outstanding $ 314,870 $ 636,782 Weighted average borrowings during the period ended 518,437 737,802 Maximum daily borrowings during the period ended 636,782 813,544 Weighted average interest rate during the period ended 4.1 % 3.9 % Weighted average interest rate at the end of the period 4.7 % 3.8 % (c) The variable rate mortgage notes payable that secure tax-exempt housing bond issues mature in August 2019 and March 2032. Interest on these notes is payable in monthly installments. The variable rate mortgage notes have interest rates ranging from 1.52% to 1.54% as of June 30, 2017. (d) The Company has a $1.1 billion unsecured revolving credit facility (the “Revolving Credit Facility”) and a $350.0 million unsecured term loan facility (the “Term Loan Facility”). The credit agreement for these facilities (the "Credit Agreement") allows the total commitments under the Revolving Credit Facility and the total borrowings under the Term Loan Facility to be increased to an aggregate maximum amount of up to $2.0 billion, subject to certain conditions, including obtaining commitments from any one or more lenders. The Revolving Credit Facility has a scheduled maturity date of January 31, 2020, with two six-month extension options, subject to certain conditions. The Term Loan Facility has a scheduled maturity date of January 29, 2021. Based on the Company’s current credit rating, the Revolving Credit Facility has an interest rate equal to LIBOR plus a margin of 90 basis points and a facility fee of 15 basis points, and the Term Loan Facility has an interest rate equal to LIBOR plus a margin of 95 basis points. Depending on the Company’s credit rating, the margin under the Revolving Credit Facility ranges from 85 to 155 basis points, the facility fee ranges from 12.5 to 30 basis points, and the margin under the Term Loan Facility ranges from 90 to 175 basis points. The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Credit Agreement also includes customary events of default, in certain cases subject to customary periods to cure. The occurrence of an event of default, following the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest and all other amounts payable under the Credit Agreement to be immediately due and payable. The following is a summary of short-term bank borrowings under the Revolving Credit Facility at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total revolving credit facility $ 1,100,000 $ 1,100,000 Borrowings outstanding at end of period (1) — — Weighted average daily borrowings during the period ended 4,586 161,505 Maximum daily borrowings during the period ended 120,000 340,000 Weighted average interest rate during the period ended 1.6 % 1.4 % Interest rate at end of the period — % — % (1) Excludes $3.3 million and $2.9 million of letters of credit at June 30, 2017 and December 31, 2016, respectively. (e) On January 23, 2017, the Company entered into an unsecured commercial paper program. Under the terms of the program, the Company may issue unsecured commercial paper up to a maximum aggregate amount outstanding of $500 million. The notes are sold under customary terms in the United States commercial paper market and rank pari passu with all of the Company’s other unsecured indebtedness. The notes are fully and unconditionally guaranteed by the Operating Partnership. The following is a summary of short-term bank borrowings under the unsecured commercial paper program at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total unsecured commercial paper program $ 500,000 $ — Borrowings outstanding at end of period 240,000 — Weighted average daily borrowings during the period ended 186,743 — Maximum daily borrowings during the period ended 340,000 — Weighted average interest rate during the period ended 1.3 % — % Interest rate at end of the period 1.5 % — % (f) The Company has a working capital credit facility, which provides for a $75 million unsecured revolving credit facility (the “Working Capital Credit Facility”) with a scheduled maturity date of January 1, 2019. Based on the Company’s current credit rating, the Working Capital Credit Facility has an interest rate equal to LIBOR plus a margin of 90 basis points. Depending on the Company’s credit rating, the margin ranges from 85 to 155 basis points. The following is a summary of short-term bank borrowings under the Working Capital Credit Facility at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total working capital credit facility $ 75,000 $ 75,000 Borrowings outstanding at end of period 40,058 21,350 Weighted average daily borrowings during the period ended 24,809 21,936 Maximum daily borrowings during the period ended 67,799 69,633 Weighted average interest rate during the period ended 1.8 % 1.4 % Interest rate at end of the period 2.1 % 1.7 % (g) The Company previously entered into forward starting interest rate swaps to hedge against interest rate risk on $200 million of this debt. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 4.55%. (h) On June 16, 2017, the Company issued $300 million of 3.50% senior unsecured medium-term notes due July 1, 2027. Interest is payable semi-annually in arrears on January 1 and July 1 of each year, beginning on January 1, 2018. The notes were priced at 99.764% of the prinicipal amount at issuance. The Company used the net proceeds for the repayment of outstanding indebtedness and for general corporate purposes. (i) The Operating Partnership is a guarantor of this debt. The aggregate maturities, including amortizing principal payments of unsecured and secured debt, of total debt for the next ten calendar years subsequent to June 30, 2017 are as follows (dollars in thousands): Total Fixed Total Variable Total Total Total Year Secured Debt Secured Debt Secured Debt Unsecured Debt Debt 2017 $ 2,228 $ — $ 2,228 $ 240,000 $ 242,228 2018 4,636 29,034 33,670 300,000 333,670 2019 249,395 67,700 317,095 40,058 357,153 2020 198,076 — 198,076 300,000 498,076 2021 1,117 — 1,117 350,000 351,117 2022 1,157 — 1,157 400,000 401,157 2023 41,245 — 41,245 — 41,245 2024 — — — 315,644 315,644 2025 127,600 — 127,600 300,000 427,600 2026 50,000 — 50,000 300,000 350,000 Thereafter — 27,000 27,000 300,000 327,000 Subtotal 675,454 123,734 799,188 2,845,702 3,644,890 Non-cash (a) 7,763 (304) 7,459 (17,701) (10,242) Total $ 683,217 $ 123,430 $ 806,647 $ 2,828,001 $ 3,634,648 (a) Includes the unamortized balance of fair market value adjustments, premiums/discounts and deferred financing costs. For the three months ended June 30, 2017 and 2016, the Company amortized $1.1 million and $1.2 million, respectively, of deferred financing costs into Interest expense. For the six months ended June 30, 2017 and 2016, the Company amortized $2.1 million and $ 2.4 million, respectively, of deferred financing costs into Interest expense. We were in compliance with the covenants of our debt instruments at June 30, 2017. |
Income_(Loss) Per Share
Income/(Loss) Per Share | 6 Months Ended |
Jun. 30, 2017 | |
INCOME/(LOSS) PER SHARE | |
INCOME/(LOSS) PER SHARE | 7. INCOME/(LOSS) PER SHARE The following table sets forth the computation of basic and diluted income/(loss) per share for the periods presented (dollars and shares in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Numerator for income/(loss) per share: Income/(loss) from continuing operations $ 11,062 $ 12,249 $ 37,326 $ 20,783 Gain/(loss) on sale of real estate owned, net of tax — 7,315 2,132 10,385 Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (854) (1,610) (3,192) (2,515) Net (income)/loss attributable to noncontrolling interests (51) (8) (142) (314) Net income/(loss) attributable to UDR, Inc. 10,157 17,946 36,124 28,339 Distributions to preferred stockholders — Series E (Convertible) (929) (929) (1,858) (1,858) Income/(loss) attributable to common stockholders - basic and diluted $ 9,228 $ 17,017 $ 34,266 $ 26,481 Denominator for income/(loss) per share: Weighted average common shares outstanding 267,495 267,113 267,449 265,234 Non-vested restricted stock awards (523) (845) (568) (872) Denominator for basic income/(loss) per share 266,972 266,268 266,881 264,362 Incremental shares issuable from assumed conversion of stock options, unvested LTIP Units and unvested restricted stock 1,887 1,906 1,861 1,865 Denominator for diluted income/(loss) per share 268,859 268,174 268,742 266,227 Income/(loss) per weighted average common share: Basic $ 0.03 $ 0.06 $ 0.13 $ 0.10 Diluted $ 0.03 $ 0.06 $ 0.13 $ 0.10 Basic income/(loss) per common share is computed based upon the weighted average number of common shares outstanding. Diluted income/(loss) per common share is computed based upon the weighted average number of common shares outstanding plus the common shares issuable from the assumed conversion of the OP Units and DownREIT Units, convertible preferred stock, stock options, unvested long-term incentive plan units ("LTIP Units") and unvested restricted stock. Only those instruments having a dilutive impact on our basic income/(loss) per share are included in diluted income/(loss) per share during the periods. For the three and six months ended June 30, 2017 and 2016, the effect of the conversion of the OP Units, DownREIT Units and convertible preferred stock was not dilutive and therefore not included in the above calculation. The following table sets forth the additional shares of common stock outstanding by equity instrument if converted to common stock for each of the three and six months ended June 30, 2017 and 2016 (shares in thousands) : Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 OP/DownREIT Units 24,864 25,190 24,913 25,191 Convertible preferred stock 3,028 3,028 3,028 3,028 Stock options, unvested LTIP Units and unvested restricted stock 1,887 1,906 1,861 1,865 |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2017 | |
NONCONTROLLING INTERESTS | |
NONCONTROLLING INTERESTS | 8. NONCONTROLLING INTERESTS Redeemable Noncontrolling Interests in the Operating Partnership and DownREIT Partnership Interests in the Operating Partnership and the DownREIT Partnership held by limited partners are represented by OP Units and DownREIT Units, respectively. The income is allocated to holders of OP Units/DownREIT Units based upon net income attributable to common stockholders and the weighted average number of OP Units/DownREIT Units outstanding to total common shares plus OP Units/DownREIT Units outstanding during the period. Capital contributions, distributions, and profits and losses are allocated to noncontrolling interests in accordance with the terms of the partnership agreements of the Operating Partnership and the DownREIT Partnership. Limited partners of the Operating Partnership and the DownREIT Partnership have the right to require such partnership to redeem all or a portion of the OP Units/DownREIT Units held by the limited partner at a redemption price equal to and in the form of the Cash Amount (as defined in the partnership agreement of the Operating Partnership or the DownREIT Partnership, as applicable), provided that such OP Units/DownREIT Units have been outstanding for at least one year, subject to certain exceptions. UDR, as the general partner of the Operating Partnership and the DownREIT Partnership may, in its sole discretion, purchase the OP Units/DownREIT Units by paying to the limited partner either the Cash Amount or the REIT Share Amount (generally one share of common stock of the Company for each OP Unit/DownREIT Unit), as defined in the partnership agreement of the Operating Partnership or the DownREIT Partnership, as applicable. Accordingly, the Company records the OP Units/DownREIT Units outside of permanent equity and reports the OP Units/DownREIT Units at their redemption value using the Company’s stock price at each balance sheet date. The following table sets forth redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership for the following period ( dollars in thousands ): Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, December 31, 2016 $ 909,482 Mark-to-market adjustment to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership 74,616 Conversion of OP Units/DownREIT Units to Common Stock (6,135) Net income/(loss) attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership 3,192 Distributions to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (15,796) Vesting of Long-Term Incentive Plan Units 2,317 Allocation of other comprehensive income/(loss) 121 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, June 30, 2017 $ 967,797 Noncontrolling Interests Noncontrolling interests represent interests of unrelated partners and unvested LTIP Units in certain consolidated affiliates, and is presented as part of equity in the Consolidated Balance Sheets since these interests are not redeemable. Net (income)/loss attributable to noncontrolling interests was $(0.1) million and less than $(0.1) million during the three months ended June 30, 2017 and 2016, respectively, and $(0.1) million and $(0.3) million during the six months ended June 30, 2017 and 2016, respectively. The Company grants LTIP Units to certain employees and non-employee directors. The LTIP Units represent an ownership interest in the Operating Partnership and have vesting terms of between one and three years, specific to the individual grants. Noncontrolling interests related to long-term incentive plan units represent the unvested LTIP Units of these employees and non-employee directors in the Operating Partnership. The net income/(loss) allocated to the unvested LTIP Units is included in Net (income)/loss attributable to noncontrolling interests on the Consolidated Statements of Operations. |
Fair Value of Derivatives and F
Fair Value of Derivatives and Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | |
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | 9. FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS Fair value is based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: · Level 1 — Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. · Level 2 — Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. · Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The estimated fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis as of June 30, 2017 and December 31, 2016 are summarized as follows (dollars in thousands) : Fair Value at June 30, 2017, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable June 30, June 30, Liabilities Inputs Inputs 2017 2017 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 17,290 $ 17,286 $ — $ — $ 17,286 Derivatives - Interest rate contracts (b) 4,377 4,377 — 4,377 — Total assets $ 21,667 $ 21,663 $ — $ 4,377 $ 17,286 Secured debt instruments - fixed rate: (c) Mortgage notes payable $ 399,315 $ 396,828 $ — $ — $ 396,828 Fannie Mae credit facilities 285,836 292,860 — — 292,860 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 94,700 94,700 — — 94,700 Fannie Mae credit facilities 29,034 29,034 — — 29,034 Unsecured debt instruments: (c) Working capital credit facility 40,058 40,058 — — 40,058 Commercial paper program 240,000 240,000 — — 240,000 Unsecured notes 2,561,616 2,611,612 — — 2,611,612 Total liabilities $ 3,650,559 $ 3,705,092 $ — $ — $ 3,705,092 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 967,797 $ 967,797 $ — $ 967,797 $ — Fair Value at December 31, 2016, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable December 31, December 31, Liabilities Inputs Inputs 2016 2016 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 19,790 $ 19,645 $ — $ — $ 19,645 Derivatives - Interest rate contracts (b) 4,360 4,360 — 4,360 — Total assets $ 24,150 $ 24,005 $ — $ 4,360 $ 19,645 Derivatives- Interest rate contracts (b) $ 413 $ 413 $ — $ 413 $ — Secured debt instruments - fixed rate: (c) Mortgage notes payable 402,996 396,045 — — 396,045 Fannie Mae credit facilities 355,836 365,693 — — 365,693 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 94,700 94,700 — — 94,700 Fannie Mae credit facilities 280,946 280,946 — — 280,946 Unsecured debt instruments: (c) Working capital credit facility 21,350 21,350 — — 21,350 Unsecured notes 2,261,838 2,304,492 — — 2,304,492 Total liabilities $ 3,418,079 $ 3,463,639 $ — $ 413 $ 3,463,226 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 909,482 $ 909,482 $ — $ 909,482 $ — (a) See Note 2, Significant Accounting Policies . (b) See Note 10, Derivatives and Hedging Activity . (c) See Note 6, Secured Debt and Unsecured Debt, Net . (d) See Note 8, Noncontrolling Interests . There were no transfers into or out of any of the levels of the fair value hierarchy during the six months ended June 30, 2017. Financial Instruments Carried at Fair Value The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair values of interest rate options are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2017 and December 31, 2016, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. In conjunction with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership have a redemption feature and are marked to their redemption value. The redemption value is based on the fair value of the Company’s common stock at the redemption date, and therefore, is calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership are classified as Level 2. Financial Instruments Not Carried at Fair Value At June 30, 2017 and December 31, 2016, the fair values of cash and cash equivalents, restricted cash, accounts receivable, prepaids, real estate taxes payable, accrued interest payable, security deposits and prepaid rent, distributions payable and accounts payable approximated their carrying values because of the short term nature of these instruments. The estimated fair values of other financial instruments were determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company would realize on the disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts. We estimate the fair value of our notes receivable and debt instruments by discounting the remaining cash flows of the debt instrument at a discount rate equal to the replacement market credit spread plus the corresponding treasury yields. Factors considered in determining a replacement market credit spread include general market conditions, borrower specific credit spreads, time remaining to maturity, loan-to-value ratios and collateral quality, where applicable (Level 3). We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by the future operation and disposition of those assets are less than the net book value of those assets. Our cash flow estimates are based upon historical results adjusted to reflect our best estimate of future market and operating conditions and our estimated holding periods. The net book value of impaired assets is reduced to fair value. Our estimates of fair value represent our best estimate based upon Level 3 inputs such as industry trends and reference to market rates and transactions. We consider various factors to determine if a decrease in the value of our investment in and advances to unconsolidated joint ventures, net is other-than-temporary. These factors include, but are not limited to, age of the venture, our intent and ability to retain our investment in the entity, the financial condition and long-term prospects of the entity, and the relationships with the other joint venture partners and its lenders. Based on the significance of the unobservable inputs, we classify these fair value measurements within Level 3 of the valuation hierarchy. The Company did not incur any other-than-temporary decrease in the value of its investments in unconsolidated joint ventures during the three and six months ended June 30, 2017 and 2016. After determining an other-than-temporary decrease in the value of an equity method investment has occurred, we estimate the fair value of our investment by estimating the proceeds we would receive upon a hypothetical liquidation of the investment at the date of measurement. Inputs reflect management’s best estimate of what market participants would use in pricing the investment giving consideration to the terms of the joint venture agreement and the estimated discounted future cash flows to be generated from the underlying joint venture assets. The inputs and assumptions utilized to estimate the future cash flows of the underlying assets are based upon the Company’s evaluation of the economy, market trends, operating results, and other factors, including judgments regarding costs to complete any construction activities, lease up and occupancy rates, rental rates, inflation rates, capitalization rates utilized to estimate the projected cash flows at the disposition, and discount rates. |
Derivatives and Hedging Activit
Derivatives and Hedging Activity | 6 Months Ended |
Jun. 30, 2017 | |
DERIVATIVES AND HEDGING ACTIVITY | |
DERIVATIVES AND HEDGING ACTIVITY | 10. DERIVATIVES AND HEDGING ACTIVITY Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated other comprehensive income/(loss), net in the Consolidated Balance Sheets and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended June 30, 2017 and 2016, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and six months ended June 30, 2017, the Company recognized a loss of $0.1 million reclassified from Accumulated OCI to Interest expense due to the de-designation of cash flow hedges and recorded no other ineffectiveness to earnings. During the three and six months ended June 30, 2016, the Company recorded no ineffectiveness to earnings. Amounts reported in Accumulated other comprehensive income/(loss), net in the Consolidated Balance Sheets related to derivatives that will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. Through June 30, 2018, the Company estimates that an additional $0.1 million will be reclassified as an increase to interest expense. As of June 30, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk ( dollars in thousands ): Number of Product Instruments Notional Interest rate swaps 4 $ 315,000 Interest rate caps 1 $ 65,197 Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in a loss of less than $0.1 million for the three and six months ended June 30, 2017 and 2016. As of June 30, 2017, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships ( dollars in thousands ): Number of Product Instruments Notional Interest rate caps 3 $ 271,076 Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016 ( dollars in thousands ): Asset Derivatives Liability Derivatives (included in Other assets ) (included in Other liabilities ) Fair Value at: Fair Value at: June 30, December 31, June 30, December 31, 2017 2016 2017 2016 Derivatives designated as hedging instruments: Interest rate products $ 4,377 $ 4,359 $ — $ 413 Derivatives not designated as hedging instruments: Interest rate products $ — $ 1 $ — $ — Tabular Disclosure of the Effect of Derivative Instruments on the Consolidated Statements of Operations The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016 ( dollars in thousands ): Gain/(Loss) Recognized in Gain/(Loss) Reclassified Interest expense Unrealized holding gain/(loss) from Accumulated OCI into (Ineffective Portion and Recognized in OCI Interest expense Amount Excluded from (Effective Portion) (Effective Portion) Effectiveness Testing) Derivatives in Cash Flow Hedging Relationships 2017 2016 2017 2016 2017 2016 Three Months Ended June 30, Interest rate products $ (507) $ (1,963) $ (308) $ (943) $ (82) $ — Six Months Ended June 30, Interest rate products $ 126 $ (2,774) $ (1,073) $ (1,878) $ (136) $ — Gain/(Loss) Recognized in Interest income and other income/(expense), net Derivatives Not Designated as Hedging Instruments 2017 2016 Three Months Ended June 30, Interest rate products $ — $ (3) Six Months Ended June 30, Interest rate products $ (1) $ (3) Credit-risk-related Contingent Features The Company has agreements with some of its derivative counterparties that contain a provision where (1) if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations; or (2) the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. Certain of the Company’s agreements with its derivative counterparties contain provisions where, if there is a change in the Company’s financial condition that materially changes the Company’s creditworthiness in an adverse manner, the Company may be required to fully collateralize its obligations under the derivative instrument. At June 30, 2017 and December 31, 2016, no cash collateral was posted or required to be posted by the Company or by a counterparty. The Company also has an agreement with a derivative counterparty that incorporates the loan and financial covenant provisions of the Company’s indebtedness with a lender affiliate of the derivative counterparty. Failure to comply with these covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the applicable agreement. The Company has certain agreements with some of its derivative counterparties that contain a provision where, in the event of default by the Company or the counterparty, the right of setoff may be exercised. Any amount payable to one party by the other party may be reduced by its setoff against any amounts payable by the other party. Events that give rise to default by either party may include, but are not limited to, the failure to pay or deliver payment under the derivative agreement, the failure to comply with or perform under the derivative agreement, bankruptcy, a merger without assumption of the derivative agreement, or in a merger, a surviving entity’s creditworthiness is materially weaker than the original party to the derivative agreement. As of June 30, 2017, the fair value of derivatives was in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, of $4.4 million. As of June 30, 2017, the Company has not posted any collateral related to these agreements. Tabular Disclosure of Offsetting Derivatives The Company has elected not to offset derivative positions in the consolidated financial statements. The tables below present the effect on its financial position had the Company made the election to offset its derivative positions as of June 30, 2017 and December 31, 2016 (dollars in thousands): Gross Net Amounts of Gross Amounts Not Offset Amounts Assets in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Assets Assets Sheets (a) Instruments Received Net Amount June 30, 2017 $ 4,377 $ — $ 4,377 $ — $ — $ 4,377 December 31, 2016 $ 4,360 $ — $ 4,360 $ (221) $ — $ 4,139 (a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. Gross Net Amounts of Gross Amounts Not Offset Amounts Liabilities in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Liabilities Liabilities Sheets (a) Instruments Posted Net Amount June 30, 2017 $ — $ — $ — $ — $ — $ — December 31, 2016 $ 413 $ — $ 413 $ (221) $ — $ 192 (a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote . |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
STOCK BASED COMPENSATION | |
STOCK BASED COMPENSATION | 11. STOCK BASED COMPENSATION The Company recognized stock based compensation expense, inclusive of awards granted to our independent directors, net of capitalization, of $3.4 million and $3.2 million during the three months ended June 30, 2017 and 2016, respectively, and $6.8 million and $7.1 million during the six months ended June 30, 2017 and 2016, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES Commitments Real Estate Under Development The following summarizes the Company’s real estate commitments at June 30, 2017 ( dollars in thousands ): Expected Average Number of Costs Incurred to Costs Ownership Properties Date (a) to Complete Stake Wholly-owned — under development 2 $ 465,729 (b) $ 242,771 100 % Wholly-owned — redevelopment 1 6,171 (b) 3,329 100 % Joint ventures: Unconsolidated joint ventures 5 430,918 52,257 (c) 50 % Participating loan investments 1 93,984 (d) — — % Preferred equity investments 4 64,532 (e) 18,247 (f) 48 % (g) Other investments 1 10,560 27,999 (h) — % Total $ 1,071,894 $ 344,603 (a) Represents 100% of project costs incurred as of June 30, 2017. (b) Costs incurred as of June 30, 2017 include $ 36.7 million and $ 2.2 million of accrued fixed assets for development and redevelopment, respectively. (c) Represents UDR’s proportionate share of expected remaining costs to complete the developments. (d) Represents the participating loan balance funded as of June 30, 2017. (e) Represents UDR’s investment in the West Coast Development Joint Ventures and 1532 Harrison for the properties under development as of June 30, 2017. (f) Represents UDR’s remaining commitment for 1532 Harrison. (g) Represents UDR’s average ownership stake in the West Coast Development Joint Ventures only and does not include UDR’s preferred equity interest in 1532 Harrison. (h) Represents UDR’s remaining commitment for The Portals. Contingencies Litigation and Legal Matters The Company is subject to various legal proceedings and claims arising in the ordinary course of business. The Company cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The Company believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on our financial condition, results of operations or cash flow. |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2017 | |
REPORTABLE SEGMENTS | |
REPORTABLE SEGMENTS | 13. REPORTABLE SEGMENTS GAAP guidance requires that segment disclosures present the measure(s) used by the chief operating decision maker to decide how to allocate resources and for purposes of assessing such segments’ performance. UDR’s chief operating decision maker is comprised of several members of its executive management team who use several generally accepted industry financial measures to assess the performance of the business for our reportable operating segments. UDR owns and operates multifamily apartment communities that generate rental and other property related income through the leasing of apartment homes to a diverse base of tenants. The primary financial measures for UDR’s apartment communities are rental income and net operating income (“NOI”). Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. NOI is defined as rental income less direct property rental expenses. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI is property management expense, which is calculated as 2.75% of property revenue to cover the regional supervision and accounting costs related to consolidated property operations, and land rent. UDR’s chief operating decision maker utilizes NOI as the key measure of segment profit or loss. UDR’s two reportable segments are Same-Store Communities and Non-Mature Communities/Other : · Same-Store Communities represent those communities acquired, developed, and stabilized prior to April 1, 2016 (for quarter-to-date comparison) and January 1, 2016 (for year-to-date comparison) and held as of June 30, 2017. A comparison of operating results from the prior year is meaningful as these communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior period, there is no plan to conduct substantial redevelopment activities, and the community is not held for disposition within the current year. A community is considered to have stabilized occupancy once it achieves 90% occupancy for at least three consecutive months. · Non-Mature Communities/Other represent those communities that do not meet the criteria to be included in Same-Store Communities , including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed use properties. Management evaluates the performance of each of our apartment communities on a Same-Store Community and Non-Mature Community/Other basis, as well as individually and geographically. This is consistent with the aggregation criteria under GAAP as each of our apartment communities generally has similar economic characteristics, facilities, services, and tenants. Therefore, the Company’s reportable segments have been aggregated by geography in a manner identical to that which is provided to the chief operating decision maker. All revenues are from external customers and no single tenant or related group of tenants contributed 10% or more of UDR’s total revenues during the three and six months ended June 30, 2017 and 2016. The following table details rental income and NOI for UDR’s reportable segments for the three and six months ended June 30, 2017 and 2016, and reconciles NOI to Net Income/(Loss) Attributable to UDR, Inc. in the Consolidated Statements of Operations (dollars in thousands) : Three Months Ended Six Months Ended June 30, (a) June 30, (b) 2017 2016 2017 2016 Reportable apartment home segment rental income Same-Store Communities West Region $ 83,222 $ 79,566 $ 165,442 $ 157,973 Mid-Atlantic Region 57,199 55,586 104,620 101,288 Northeast Region 37,732 36,749 75,653 73,209 Southeast Region 29,149 27,702 57,806 54,839 Southwest Region 10,685 10,237 21,365 20,363 Non-Mature Communities/Other 26,671 26,328 61,043 60,453 Total segment and consolidated rental income $ 244,658 $ 236,168 $ 485,929 $ 468,125 Reportable apartment home segment NOI Same-Store Communities West Region $ 62,658 $ 58,819 $ 124,552 $ 117,963 Mid-Atlantic Region 40,106 39,039 72,928 69,450 Northeast Region 27,151 26,983 54,052 53,343 Southeast Region 20,059 19,081 39,720 37,877 Southwest Region 6,613 6,344 13,293 12,676 Non-Mature Communities/Other 18,036 17,049 41,561 40,140 Total segment and consolidated NOI 174,623 167,315 346,106 331,449 Reconciling items: Joint venture management and other fees 3,321 2,618 5,891 5,476 Property management (6,728) (6,494) (13,363) (12,873) Other operating expenses (2,369) (1,892) (4,060) (3,644) Real estate depreciation and amortization (108,450) (105,937) (213,482) (211,276) General and administrative (11,434) (10,835) (24,509) (24,679) Casualty-related (charges)/recoveries, net (1,191) (1,629) (1,693) (1,629) Other depreciation and amortization (1,567) (1,486) (3,175) (3,039) Income/(loss) from unconsolidated entities (1,426) 325 9,772 1,004 Interest expense (33,866) (30,678) (64,405) (61,782) Interest income and other income/(expense), net 515 540 942 971 Tax (provision)/benefit, net (366) 402 (698) 805 Gain/(loss) on sale of real estate owned, net of tax — 7,315 2,132 10,385 Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (854) (1,610) (3,192) (2,515) Net (income)/loss attributable to noncontrolling interests (51) (8) (142) (314) Net income/(loss) attributable to UDR, Inc. $ 10,157 $ 17,946 $ 36,124 $ 28,339 (a) Same-Store Community population consisted of 36,540 apartment homes. (b) Same-Store Community population consisted of 35,689 apartment homes. The following table details the assets of UDR’s reportable segments as of June 30, 2017 and December 31, 2016 (dollars in thousands) : June 30, December 31, 2017 2016 Reportable apartment home segment assets: Same-Store Communities: West Region $ 2,954,555 $ 2,938,073 Mid-Atlantic Region 2,434,358 2,427,948 Northeast Region 1,860,934 1,857,193 Southeast Region 752,902 746,762 Southwest Region 286,145 283,260 Non-Mature Communities/Other 1,600,026 1,362,517 Total segment assets 9,888,920 9,615,753 Accumulated depreciation (3,132,031) (2,923,625) Total segment assets — net book value 6,756,889 6,692,128 Reconciling items: Cash and cash equivalents 1,411 2,112 Restricted cash 19,602 19,994 Notes receivable, net 17,290 19,790 Investment in and advances to unconsolidated joint ventures, net 843,167 827,025 Other assets 129,575 118,535 Total consolidated assets $ 7,767,934 $ 7,679,584 Capital expenditures related to our Same-Store Communities totaled $23.6 million and $23.6 million for the three months ended June 30, 2017 and 2016, respectively, and $38.9 million and $36.5 million for the six months ended June 30, 2017 and 2016, respectively. Capital expenditures related to our Non-Mature Communities/Other totaled $1.4 million and $2.3 million for the three months ended June 30, 2017 and 2016, respectively, and $2.2 million and $5.0 million for the six months ended June 30, 2017 and 2016, respectively. Markets included in the above geographic segments are as follows: i. West Region — San Francisco, Orange County, Seattle, Los Angeles, Monterey Peninsula, Other Southern California and Portland ii. Mid-Atlantic Region — Metropolitan D.C., Richmond and Baltimore iii. Northeast Region — New York and Boston iv. Southeast Region — Orlando, Tampa, Nashville and Other Florida v. Southwest Region — Dallas and Austin |
Significant Accounting Polici23
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017‑01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The ASU changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for the Company on January 1, 2018; early adoption is permitted. The ASU will be applied prospectively to any transactions occurring within the period of adoption. The Company expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In November 2016, the FASB issued ASU 2016‑18, Statement of Cash Flows (Topic 230), Restricted Cash . The ASU addresses the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments . The ASU addresses specific cash flow items with the objective of reducing existing diversity in practice, including the treatment of distributions received from equity method investees. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company elected to early adopt ASU 2016‑15 in 2016 and elected to classify distributions received from equity method investees using the cumulative earnings approach. No prior period amounts required adjustment as a result of the adoption. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The standard requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and to present the net amount of the financial instrument expected to be collected. The updated standard will be effective for the Company on January 1, 2020; early adoption is permitted on January 1, 2019. The Company is currently evaluating the effect that the updated standard will have on the consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016‑09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting . The ASU aims to simplify the accounting for share-based payments by amending the accounting for forfeitures, statutory tax withholding requirements, classification in the statements of cash flow and income taxes. The updated standard was effective for the Company on January 1, 2017, at which time the Company prospectively began accounting for forfeitures as incurred and began applying the updated rules for statutory withholdings. As a result of adopting the ASU, the Company recorded a one-time adjustment for existing estimated forfeitures of $0.6 million as of January 1, 2017 to Distributions in Excess of Net Income on January 1, 2017. In February 2016, the FASB issued ASU No. 2016‑02, Leases . The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. Full retrospective application is prohibited. The standard will be effective for the Company on January 1, 2019, with early adoption permitted. While the Company is currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures, we expect to recognize right-of-use assets and related lease liabilities on our consolidated balance sheets related to ground leases on any communities where we are the lessee. In May 2014, the FASB issued ASU No. 2014‑09, Revenue from Contracts with Customers . The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, including industry-specific revenue guidance. The standard specifically excludes lease contracts. The ASU allows for the use of either the full or modified retrospective transition method and will be effective for the Company on January 1, 2018, at which time the Company expects to adopt the updated standard using the modified retrospective approach. However, as the majority of the Company’s revenue is from rental income related to leases, the Company does not expect the ASU to have a material impact on the consolidated financial statements and related disclosures. |
Principles of Consolidation | Principles of Consolidation The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Company first evaluates whether each entity is a variable interest entity ("VIE"). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. |
Discontinued operations | Discontinued Operations In accordance with GAAP, a discontinued operation represents (1) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (2) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (1) a separate major line of business, (2) a separate major geographic area of operations, (3) a major equity method investment, or (4) other major parts of an entity. We record sales of real estate that do not meet the definition of a discontinued operation in Gain/(loss) on sale of real estate owned, net of tax on the Consolidated Statements of Operations. |
Revenue and real estate sales gain recognition | Revenue and Real Estate Sales Gain Recognition Rental income related to leases is recognized on an accrual basis when due from residents and tenants in accordance with GAAP. Rental payments are generally due on a monthly basis and recognized when earned. The Company recognizes interest income, management and other fees and incentives when earned, and the amounts are fixed and determinable. For sale transactions meeting the requirements for full accrual profit recognition, we remove the related assets and liabilities from our Consolidated Balance Sheets and record the gain or loss in the period the transaction closes. For sale transactions that do not meet the full accrual sale criteria due to our continuing involvement, we evaluate the nature of the continuing involvement and account for the transaction under an alternate method of accounting. Unless certain limited criteria are met, non-monetary transactions, including property exchanges, are accounted for at fair value. Sales to entities in which we retain or otherwise own an interest are accounted for as partial sales. If all other requirements for recognizing profit under the full accrual method have been satisfied and no other forms of continuing involvement are present, we recognize profit proportionate to the outside interest of the buyer and defer the gain on the interest we retain. The Company recognizes any deferred gain when the property is sold to a third party. In transactions accounted for by us as partial sales, we determine if the buyer of the majority equity interest in the venture was provided a preference as to cash flows in either an operating or a capital waterfall. If a cash flow preference has been provided, we recognize profit only to the extent that proceeds from the sale of the majority equity interest exceed costs related to the entire property. |
Notes Receivable | Notes Receivable The following table summarizes our notes receivable, net as of June 30, 2017 and December 31, 2016 ( dollars in thousands): Interest rate at Balance Outstanding June 30, June 30, December 31, 2017 2017 2016 Note due February 2020 (a) 10.00 % $ 12,994 $ 12,994 Note due July 2017 (b) — % — 2,500 Note due October 2020 (c) 8.00 % 1,296 1,296 Note due April 2021 (d) 10.00 % 3,000 3,000 Total notes receivable, net $ 17,290 $ 19,790 (a) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $13.0 million. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the eighth anniversary of the date of the note (February 2020). (b) At December 31, 2016, the Company had a secured note receivable with an unaffiliated third party with an aggregate commitment of $2.5 million. The outstanding balance was paid in full during the six months ended June 30, 2017. (c) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $2.0 million, of which, $1.3 million has been funded. Interest payments are due when the loan matures. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $10.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (October 2020). (d) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $15.0 million, of which, $3.0 million has been funded. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $25.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (April 2021). The Company recognized $0.5 million and $0.5 million of interest income from notes receivable during the three months ended June 30, 2017 and 2016, respectively, and $0.9 million and $0.8 million during the six months ended June 30, 2017 and 2016, respectively, none of which was related party interest income. Interest income is included in Interest income and other income/(expense), net on the Consolidated Statements of Operations. |
Comprehensive Income/(Loss) | Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to stockholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three and six months ended June 30, 2017 and 2016, the Company’s other comprehensive income/(loss) consisted of the gain/(loss) (effective portion) on derivative instruments that are designated as and qualify as cash flow hedges, (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) into earnings, and the allocation of other comprehensive income/(loss) to noncontrolling interests. The (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) is included in Interest expense on the Consolidated Statements of Operations. See Note 10, Derivatives and Hedging Activity, for further discussion. The allocation of other comprehensive income/(loss) to redeemable noncontrolling interests during the three months ended June 30, 2017 and 2016 was less than $(0.1) million and $(0.1) million, respectively, and during the six months ended June 30, 2017 and 2016 was $0.1 million and $(0.6) million, respectively. |
Income Taxes | Income Taxes Due to the structure of the Company as a REIT and the nature of the operations for the operating properties, no provision for federal income taxes has been provided for at UDR. Historically, the Company has generally incurred only state and local excise and franchise taxes. UDR has elected for certain consolidated subsidiaries to be treated as taxable REIT subsidiaries (“TRS”). Income taxes for our TRS are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. The Company’s deferred tax assets are generally the result of differing depreciable lives on capitalized assets and timing of expense recognition for certain accrued liabilities. As of June 30, 2017 and December 31, 2016, UDR’s net deferred tax asset was $0.3 million and $0.6 million, respectively. GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition. The Company recognizes its tax positions and evaluates them using a two-step process. First, UDR determines whether a tax position is more likely than not (greater than 50 percent probability to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. UDR had no material unrecognized tax benefit, accrued interest or penalties at June 30, 2017. UDR and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The tax years 2013 through 2016 remain open to examination by tax jurisdictions to which we are subject. When applicable, UDR recognizes interest and/or penalties related to uncertain tax positions in Tax (provision)/benefit, net on the Consolidated Statements of Operations. |
Significant Accounting Polici24
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Notes receivable | The following table summarizes our notes receivable, net as of June 30, 2017 and December 31, 2016 ( dollars in thousands): Interest rate at Balance Outstanding June 30, June 30, December 31, 2017 2017 2016 Note due February 2020 (a) 10.00 % $ 12,994 $ 12,994 Note due July 2017 (b) — % — 2,500 Note due October 2020 (c) 8.00 % 1,296 1,296 Note due April 2021 (d) 10.00 % 3,000 3,000 Total notes receivable, net $ 17,290 $ 19,790 (a) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $13.0 million. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the eighth anniversary of the date of the note (February 2020). (b) At December 31, 2016, the Company had a secured note receivable with an unaffiliated third party with an aggregate commitment of $2.5 million. The outstanding balance was paid in full during the six months ended June 30, 2017. (c) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $2.0 million, of which, $1.3 million has been funded. Interest payments are due when the loan matures. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $10.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (October 2020). (d) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $15.0 million, of which, $3.0 million has been funded. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $25.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (April 2021). |
Real Estate Owned (Tables)
Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
REAL ESTATE OWNED | |
Summary of carrying amounts for real estate owned (at cost) | The following table summarizes the carrying amounts for our real estate owned (at cost) as of June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Land $ 1,788,391 $ 1,801,576 Depreciable property — held and used: Land improvements 183,796 178,701 Building, improvements, and furniture, fixtures and equipment 7,451,004 7,291,570 Under development: Land and land improvements 111,028 111,028 Building, improvements, and furniture, fixtures and equipment 354,701 231,254 Real estate held for disposition: Land and land improvements — 1,104 Building, improvements, and furniture, fixtures and equipment — 520 Real estate owned 9,888,920 9,615,753 Accumulated depreciation (3,132,031) (2,923,625) Real estate owned, net $ 6,756,889 $ 6,692,128 |
Joint Ventures and Partnershi26
Joint Ventures and Partnerships (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
JOINT VENTURES AND PARTNERSHIPS | |
Schedule of Equity Method Investments [Table Text Block] | The following table summarizes the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net, which are accounted for under the equity method of accounting as of June 30, 2017 and December 31, 2016 (dollars in thousands) : Number of Number of Apartment Properties Homes Investment at UDR’s Ownership Interest Location of June 30, June 30, June 30, December 31, June 30, December 31, Joint Venture Properties 2017 2017 2017 2016 2017 2016 Operating and development: UDR/MetLife I Los Angeles, CA 1 development community (a) 150 $ 34,416 $ 25,209 50.0 % 50.0 % UDR/MetLife II (b) Various 18 operating communities 4,059 309,586 311,282 50.0 % 50.0 % Other UDR/MetLife Development Joint Ventures Various 2 operating community; 1,437 142,363 160,979 50.6 % 50.6 % 3 development communities (a) UDR/MetLife Vitruvian Park ® Addison, TX 3 operating communities; 1,513 73,317 72,414 50.0 % 50.0 % 1 development community (a); 5 land parcels UDR/KFH Washington, D.C. 3 operating communities 660 10,991 12,835 30.0 % 30.0 % Investment in and advances to unconsolidated joint ventures, net, before participating loan investment, preferred equity investments and other investments $ 570,673 $ 582,719 Income from investments Investment at Three Months Ended Six Months Ended Years To UDR June 30, December 31, June 30, June 30, Location Rate Maturity Commitment 2017 2016 2017 2016 2017 2016 Participating loan investment: Steele Creek Denver, CO 6.5 % 0.3 $ 93,458 $ 93,984 $ 94,003 $ 1,550 $ 1,560 $ 3,083 $ 3,079 Preferred equity investments: West Coast Development Joint Ventures (c) Various 6.5 % (c) N/A — 161,552 150,303 773 1,409 13,539 3,198 1532 Harrison (d) San Francisco, CA 11.0 % 5.0 24,645 6,398 — 2 — 2 — Other investments: The Portals (e) Washington, DC 11.0 % 4.0 $ 38,559 10,560 — $ 16 $ — $ 16 $ — Total investment in and advances to unconsolidated joint ventures, net $ 843,167 $ 827,025 (a) The number of apartment homes for the communities under development presented in the table above is based on the projected number of total homes upon completion of development. As of June 30, 2017, 726 apartment homes had been completed in Other UDR/MetLife Development Joint Ventures, and no apartment homes had been completed in UDR/MetLife I or in UDR/MetLife Vitruvian Park ® . (b) In September 2015, the 717 Olympic community, which is owned by the UDR/MetLife II joint venture, experienced extensive water damage due to a ruptured water pipe. For the six months ended June 30, 2017 and 2016, the Company recorded casualty-related charges/(recoveries) of $0.9 million and $(1.1) million, respectively, representing its proportionate share of the total charges/(recoveries) recognized. (c) In May 2015, the Company entered into a joint venture agreement with an unaffiliated joint venture partner and agreed to pay $136.3 million for a 48% ownership interest in a portfolio of five communities that were under construction. The communities are located in three of the Company’s core, coastal markets: Seattle, Washington, Los Angeles and Orange County, California. UDR earns a 6.5% preferred return on its investment through each individual community’s date of stabilization, defined as when a community reaches 80% occupancy for 90 consecutive days, while the joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization, income and expense are shared based on each partner’s ownership percentage and the Company no longer receives a 6.5% preferred return on its investment in the stabilized community. The Company serves as property manager and earns a management fee during the lease-up phase and subsequent operation of each of the communities. The unaffiliated joint venture partner is the general partner of the joint venture and the developer of the communities. At inception of the agreement, the Company had a fixed-price option to acquire the remaining interest in each community beginning one year after completion. If the options are exercised for all five communities, the Company’s total purchase price will be $597.4 million. In the event the Company does not exercise its options to purchase at least two communities, the unaffiliated joint venture partner will be entitled to earn a contingent disposition fee equal to a 6.5% return on its implied equity in the communities not acquired. The unaffiliated joint venture partner is providing certain guaranties and there are construction loans on all five communities. During the six months ended June 30, 2017, the Company exercised its fixed-price option to purchase the joint venture partner’s ownership interest in one of the five communities, a 244 home operating community in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $66.0 million. As a result, the Company consolidated the operating community and it is no longer accounted for as a preferred equity investment in an unconsolidated joint venture (see Note 3, Real Estate Owned ). As a result of the consolidation, the Company recorded a gain on consolidation of $12.2 million, which is included in Income/(loss) from unconsolidated entities on the Consolidated Statements of Operations. As of June 30, 2017, construction was completed on three of the four remaining communities. Two of the four remaining communities had achieved stabilization. The other two completed communities have not achieved stabilization and the Company continues to receive a 6.5% preferred return on its investment in those communities. In March 2017 and May 2017, the Company entered into two additional joint venture agreements with the unaffiliated joint venture partner and agreed to pay $15.5 million for a 49% ownership interest in a 155 home community that is currently under construction in Seattle, Washington and $16.1 million for a 49% ownership interest in a 276 home community that is currently under construction in Hillsboro, Oregon (together with the May 2015 joint venture described above, the “West Coast Development Joint Ventures”). Consistent with the terms of the May 2015 joint venture agreement, UDR earns a 6.5% preferred return on its investments through the communities’ date of stabilization, as defined above, while our joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization of the communities, income and expense will be shared based on each partner’s ownership percentage and the Company will no longer receive a 6.5% preferred return on its investment. The Company will serve as property manager and will earn a management fee during the lease-up phase and subsequent operation of the stabilized communities. The unaffiliated joint venture partner is the general partner and the developer of the communities. The Company has concluded it does not control the joint ventures and accounts for them under the equity method of accounting. The Company has a fixed-price option to acquire the remaining interest in the communities beginning one year after completion for a total price of $61.3 million and $72.3 million, respectively. The unaffiliated joint venture partner is providing certain guaranties and there are construction loans on the communities. The Company’s recorded equity investment in the West Coast Development Joint Ventures at June 30, 2017 and December 31, 2016 of $ 161.6 million and $1 50.3 million, respectively, is inclusive of outside basis costs and our accrued but unpaid preferred return. (d) In June 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 136 apartment home community in San Francisco, California. The Company’s preferred equity investment of up to $24.6 million will earn a preferred return of 11.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. As of June 30, 2017, the Company had contributed approximately $6.4 million to the joint venture. The Company has concluded it does not control the joint venture and accounts for it under the equity method of accounting. (e) In May 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner. The joint venture has made a mezzanine loan to a third-party developer of a 373 apartment home community in Washington, D.C. The unaffiliated joint venture partner is the managing member of the joint venture. The mezzanine loan is for up to $71.0 million at an interest rate of 13.5% per annum and carries a term of four years with one, 12-month extension option. The Company’s investment commitment to the joint venture is approximately $38.6 million and earns a weighted average return rate of approximately 11.0% per annum. As of June 30, 2017, the Company had contributed approximately $10.6 million to the joint venture. The Company has concluded it does not control the joint venture and accounts for it under the equity method of accounting. |
Combined Summary of Balance Sheets Relating to Unconsolidated Joint Ventures [Table Text Block] | Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of June 30, 2017 and December 31, 2016 ( dollars in thousands ): June 30, December 31, 2017 2016 Total real estate, net $ 2,912,814 $ 2,901,067 Cash and cash equivalents 33,523 32,503 Other assets 21,295 19,047 Total assets $ 2,967,632 $ 2,952,617 Amount due to/(from) UDR $ 1,530 $ 521 Third party debt, net 1,837,639 1,794,379 Accounts payable and accrued liabilities 66,197 66,931 Total liabilities $ 1,905,366 $ 1,861,831 Total equity $ 1,062,266 $ 1,091,326 |
Financial information relating to unconsolidated joint ventures operations | Combined summary financial information relating to the unconsolidated joint ventures ’ and partnerships ’ operations (not just our proportionate share) is presented below for the three and six months ended June 30, 2017 and 2016 ( dollars in thousands ) : Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Total revenues $ 61,175 $ 58,153 $ 119,699 $ 113,190 Property operating expenses (22,836) (22,981) (44,670) (46,394) Real estate depreciation and amortization (24,785) (21,770) (48,117) (40,713) Operating income/(loss) 13,554 13,402 26,912 26,083 Interest expense (18,949) (17,005) (36,640) (33,184) Other income/(expense) — (2) — (4) Net income/(loss) $ (5,395) $ (3,605) $ (9,728) $ (7,105) |
Secured and Unsecured Debt, N27
Secured and Unsecured Debt, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Short-term Debt [Line Items] | |
Schedule of debt instruments | The following is a summary of our secured and unsecured debt at June 30, 2017 and December 31, 2016 ( dollars in thousands ): Principal Outstanding As of June 30, 2017 Weighted Weighted Average Average Number of June 30, December 31, Interest Years to Communities 2017 2016 Rate Maturity Encumbered Secured Debt: Fixed Rate Debt Mortgage notes payable (a) $ 399,315 $ 402,996 4.04 % 5.8 7 Fannie Mae credit facilities (b) 285,836 355,836 4.86 % 2.5 8 Deferred financing costs (1,934) (2,681) Total fixed rate secured debt, net 683,217 756,151 4.39 % 4.4 15 Variable Rate Debt Tax-exempt secured notes payable (c) 94,700 94,700 1.54 % 5.7 2 Fannie Mae credit facilities (b) 29,034 280,946 2.61 % 1.4 1 Deferred financing costs (304) (939) Total variable rate secured debt, net 123,430 374,707 1.79 % 4.7 3 Total Secured Debt, net 806,647 1,130,858 3.99 % 4.5 18 Unsecured Debt: Variable Rate Debt Borrowings outstanding under unsecured credit facility due January 2020 (d) (i) — — — % 2.6 Borrowings outstanding under unsecured commercial paper program due July 2017 (e) (i) 240,000 — 1.49 % 0.1 Borrowings outstanding under unsecured working capital credit facility due January 2019 (f) 40,058 21,350 2.12 % 1.5 Term Loan Facility due January 2021 (d) (i) 35,000 35,000 2.00 % 3.6 Fixed Rate Debt 4.25% Medium-Term Notes due June 2018 (net of discounts of $394 and $608, respectively) (i) 299,606 299,392 4.25 % 0.9 3.70% Medium-Term Notes due October 2020 (net of discounts of $26 and $30, respectively) (i) 299,974 299,970 3.70 % 3.3 1.98% Term Loan Facility due January 2021 (d) (i) 315,000 315,000 1.98 % 3.6 4.63% Medium-Term Notes due January 2022 (net of discounts of $1,625 and $1,805, respectively) (i) 398,375 398,195 4.63 % 4.5 3.75% Medium-Term Notes due July 2024 (net of discounts of $730 and $782, respectively) (i) 299,270 299,218 3.75 % 7.0 8.50% Debentures due September 2024 15,644 15,644 8.50 % 7.2 4.00% Medium-Term Notes due October 2025 (net of discounts of $568 and $602, respectively) (g) (i) 299,432 299,398 4.00 % 8.3 2.95% Medium-Term Notes due September 2026 (i) 300,000 300,000 2.95 % 9.2 3.50% Medium-Term Notes due July 2027 (net of discounts of $705 and $0, respectively) (h) (i) 299,295 — 3.50 % 10.0 Other 20 21 Deferred financing costs (13,673) (12,568) Total Unsecured Debt, net 2,828,001 2,270,620 3.49 % 5.2 Total Debt, net $ 3,634,648 $ 3,401,478 3.67 % 5.1 For purposes of classification of the above table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument. Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. As of June 30, 2017, secured debt encumbered $1.7 billion or 16.9% of UDR’s total real estate owned based upon gross book value ($8.2 billion or 83.1% of UDR’s real estate owned based on gross book value is unencumbered). (a) At June 30, 2017, fixed rate mortgage notes payable are generally due in monthly installments of principal and interest and mature at various dates from May 2019 through November 2026 and carry interest rates ranging from 3.15% to 5.86%. The Company will from time to time acquire properties subject to fixed rate debt instruments. In those situations, the Company records the debt at its estimated fair value and amortizes any difference between the fair value and par value to interest expense over the life of the underlying debt instrument. During the three months ended June 30, 2017 and 2016, the Company had $0.7 million and $0.7 million, respectively, and during the six months ended June 30, 2017 and 2016, the Company had $1.5 million and $ 1.5 million, respectively, of amortization of the fair market adjustment of debt assumed in the acquisition of properties,which was included in Interest expense on the Consolidated Statements of Operations. The unamortized fair market adjustment was a net premium of $9.7 million and $11.2 million at June 30, 2017 and December 31, 2016, respectively. (b) UDR had two secured credit facilities with Fannie Mae with an aggregate commitment of $314.9 million at June 30, 2017. The Fannie Mae credit facilities mature at various dates from December 201 8 through July 2020 and bear interest at floating and fixed rates. At June 30, 2017, $285.8 million of the outstanding balance was fixed and had a weighted average interest rate of 4.86% and the remaining balance of $29.0 million had a weighted average variable interest rate of 2.61%. During the six months ended June 30, 2017, the Company prepaid $275.3 million of its secured credit facilities with borrowings under the Company’s unsecured commercial paper program and proceeds from the issuance of senior unsecured medium-term notes. The Company incurred prepayment costs of $4.3 million and $5.8 million during the three and six months ended June 30, 2017, respectively, which were included in Interest expense on the Consolidated Statements of Operations. Further information related to these credit facilities is as follows (dollars in thousands) : June 30, December 31, 2017 2016 Borrowings outstanding $ 314,870 $ 636,782 Weighted average borrowings during the period ended 518,437 737,802 Maximum daily borrowings during the period ended 636,782 813,544 Weighted average interest rate during the period ended 4.1 % 3.9 % Weighted average interest rate at the end of the period 4.7 % 3.8 % (c) The variable rate mortgage notes payable that secure tax-exempt housing bond issues mature in August 2019 and March 2032. Interest on these notes is payable in monthly installments. The variable rate mortgage notes have interest rates ranging from 1.52% to 1.54% as of June 30, 2017. (d) The Company has a $1.1 billion unsecured revolving credit facility (the “Revolving Credit Facility”) and a $350.0 million unsecured term loan facility (the “Term Loan Facility”). The credit agreement for these facilities (the "Credit Agreement") allows the total commitments under the Revolving Credit Facility and the total borrowings under the Term Loan Facility to be increased to an aggregate maximum amount of up to $2.0 billion, subject to certain conditions, including obtaining commitments from any one or more lenders. The Revolving Credit Facility has a scheduled maturity date of January 31, 2020, with two six-month extension options, subject to certain conditions. The Term Loan Facility has a scheduled maturity date of January 29, 2021. Based on the Company’s current credit rating, the Revolving Credit Facility has an interest rate equal to LIBOR plus a margin of 90 basis points and a facility fee of 15 basis points, and the Term Loan Facility has an interest rate equal to LIBOR plus a margin of 95 basis points. Depending on the Company’s credit rating, the margin under the Revolving Credit Facility ranges from 85 to 155 basis points, the facility fee ranges from 12.5 to 30 basis points, and the margin under the Term Loan Facility ranges from 90 to 175 basis points. The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Credit Agreement also includes customary events of default, in certain cases subject to customary periods to cure. The occurrence of an event of default, following the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest and all other amounts payable under the Credit Agreement to be immediately due and payable. The following is a summary of short-term bank borrowings under the Revolving Credit Facility at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total revolving credit facility $ 1,100,000 $ 1,100,000 Borrowings outstanding at end of period (1) — — Weighted average daily borrowings during the period ended 4,586 161,505 Maximum daily borrowings during the period ended 120,000 340,000 Weighted average interest rate during the period ended 1.6 % 1.4 % Interest rate at end of the period — % — % (1) Excludes $3.3 million and $2.9 million of letters of credit at June 30, 2017 and December 31, 2016, respectively. (e) On January 23, 2017, the Company entered into an unsecured commercial paper program. Under the terms of the program, the Company may issue unsecured commercial paper up to a maximum aggregate amount outstanding of $500 million. The notes are sold under customary terms in the United States commercial paper market and rank pari passu with all of the Company’s other unsecured indebtedness. The notes are fully and unconditionally guaranteed by the Operating Partnership. The following is a summary of short-term bank borrowings under the unsecured commercial paper program at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total unsecured commercial paper program $ 500,000 $ — Borrowings outstanding at end of period 240,000 — Weighted average daily borrowings during the period ended 186,743 — Maximum daily borrowings during the period ended 340,000 — Weighted average interest rate during the period ended 1.3 % — % Interest rate at end of the period 1.5 % — % (f) The Company has a working capital credit facility, which provides for a $75 million unsecured revolving credit facility (the “Working Capital Credit Facility”) with a scheduled maturity date of January 1, 2019. Based on the Company’s current credit rating, the Working Capital Credit Facility has an interest rate equal to LIBOR plus a margin of 90 basis points. Depending on the Company’s credit rating, the margin ranges from 85 to 155 basis points. The following is a summary of short-term bank borrowings under the Working Capital Credit Facility at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total working capital credit facility $ 75,000 $ 75,000 Borrowings outstanding at end of period 40,058 21,350 Weighted average daily borrowings during the period ended 24,809 21,936 Maximum daily borrowings during the period ended 67,799 69,633 Weighted average interest rate during the period ended 1.8 % 1.4 % Interest rate at end of the period 2.1 % 1.7 % (g) The Company previously entered into forward starting interest rate swaps to hedge against interest rate risk on $200 million of this debt. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 4.55%. (h) On June 16, 2017, the Company issued $300 million of 3.50% senior unsecured medium-term notes due July 1, 2027. Interest is payable semi-annually in arrears on January 1 and July 1 of each year, beginning on January 1, 2018. The notes were priced at 99.764% of the prinicipal amount at issuance. The Company used the net proceeds for the repayment of outstanding indebtedness and for general corporate purposes. (i) The Operating Partnership is a guarantor of this debt. |
Secured credit facilities | Further information related to these credit facilities is as follows (dollars in thousands) : June 30, December 31, 2017 2016 Borrowings outstanding $ 314,870 $ 636,782 Weighted average borrowings during the period ended 518,437 737,802 Maximum daily borrowings during the period ended 636,782 813,544 Weighted average interest rate during the period ended 4.1 % 3.9 % Weighted average interest rate at the end of the period 4.7 % 3.8 % |
Commercial Paper | |
Short-term Debt [Line Items] | |
Schedule of short-term debt | The following is a summary of short-term bank borrowings under the unsecured commercial paper program at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total unsecured commercial paper program $ 500,000 $ — Borrowings outstanding at end of period 240,000 — Weighted average daily borrowings during the period ended 186,743 — Maximum daily borrowings during the period ended 340,000 — Weighted average interest rate during the period ended 1.3 % — % Interest rate at end of the period 1.5 % — % |
Revolving Credit Facility [Member] | |
Short-term Debt [Line Items] | |
Schedule of short-term debt | The following is a summary of short-term bank borrowings under the Revolving Credit Facility at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total revolving credit facility $ 1,100,000 $ 1,100,000 Borrowings outstanding at end of period (1) — — Weighted average daily borrowings during the period ended 4,586 161,505 Maximum daily borrowings during the period ended 120,000 340,000 Weighted average interest rate during the period ended 1.6 % 1.4 % Interest rate at end of the period — % — % (1) Excludes $3.3 million and $2.9 million of letters of credit at June 30, 2017 and December 31, 2016, respectively. |
Income_(Loss) Per Share (Tables
Income/(Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
INCOME/(LOSS) PER SHARE | |
(Loss)/earnings per share | The following table sets forth the computation of basic and diluted income/(loss) per share for the periods presented (dollars and shares in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Numerator for income/(loss) per share: Income/(loss) from continuing operations $ 11,062 $ 12,249 $ 37,326 $ 20,783 Gain/(loss) on sale of real estate owned, net of tax — 7,315 2,132 10,385 Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (854) (1,610) (3,192) (2,515) Net (income)/loss attributable to noncontrolling interests (51) (8) (142) (314) Net income/(loss) attributable to UDR, Inc. 10,157 17,946 36,124 28,339 Distributions to preferred stockholders — Series E (Convertible) (929) (929) (1,858) (1,858) Income/(loss) attributable to common stockholders - basic and diluted $ 9,228 $ 17,017 $ 34,266 $ 26,481 Denominator for income/(loss) per share: Weighted average common shares outstanding 267,495 267,113 267,449 265,234 Non-vested restricted stock awards (523) (845) (568) (872) Denominator for basic income/(loss) per share 266,972 266,268 266,881 264,362 Incremental shares issuable from assumed conversion of stock options, unvested LTIP Units and unvested restricted stock 1,887 1,906 1,861 1,865 Denominator for diluted income/(loss) per share 268,859 268,174 268,742 266,227 Income/(loss) per weighted average common share: Basic $ 0.03 $ 0.06 $ 0.13 $ 0.10 Diluted $ 0.03 $ 0.06 $ 0.13 $ 0.10 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table sets forth the additional shares of common stock outstanding by equity instrument if converted to common stock for each of the three and six months ended June 30, 2017 and 2016 (shares in thousands) : Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 OP/DownREIT Units 24,864 25,190 24,913 25,191 Convertible preferred stock 3,028 3,028 3,028 3,028 Stock options, unvested LTIP Units and unvested restricted stock 1,887 1,906 1,861 1,865 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
NONCONTROLLING INTERESTS | |
Redeemable noncontrolling interests in the Operating Partnership | The following table sets forth redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership for the following period ( dollars in thousands ): Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, December 31, 2016 $ 909,482 Mark-to-market adjustment to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership 74,616 Conversion of OP Units/DownREIT Units to Common Stock (6,135) Net income/(loss) attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership 3,192 Distributions to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (15,796) Vesting of Long-Term Incentive Plan Units 2,317 Allocation of other comprehensive income/(loss) 121 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, June 30, 2017 $ 967,797 |
Fair Value of Derivatives and30
Fair Value of Derivatives and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | |
Estimated fair values | The estimated fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis as of June 30, 2017 and December 31, 2016 are summarized as follows (dollars in thousands) : Fair Value at June 30, 2017, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable June 30, June 30, Liabilities Inputs Inputs 2017 2017 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 17,290 $ 17,286 $ — $ — $ 17,286 Derivatives - Interest rate contracts (b) 4,377 4,377 — 4,377 — Total assets $ 21,667 $ 21,663 $ — $ 4,377 $ 17,286 Secured debt instruments - fixed rate: (c) Mortgage notes payable $ 399,315 $ 396,828 $ — $ — $ 396,828 Fannie Mae credit facilities 285,836 292,860 — — 292,860 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 94,700 94,700 — — 94,700 Fannie Mae credit facilities 29,034 29,034 — — 29,034 Unsecured debt instruments: (c) Working capital credit facility 40,058 40,058 — — 40,058 Commercial paper program 240,000 240,000 — — 240,000 Unsecured notes 2,561,616 2,611,612 — — 2,611,612 Total liabilities $ 3,650,559 $ 3,705,092 $ — $ — $ 3,705,092 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 967,797 $ 967,797 $ — $ 967,797 $ — Fair Value at December 31, 2016, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable December 31, December 31, Liabilities Inputs Inputs 2016 2016 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 19,790 $ 19,645 $ — $ — $ 19,645 Derivatives - Interest rate contracts (b) 4,360 4,360 — 4,360 — Total assets $ 24,150 $ 24,005 $ — $ 4,360 $ 19,645 Derivatives- Interest rate contracts (b) $ 413 $ 413 $ — $ 413 $ — Secured debt instruments - fixed rate: (c) Mortgage notes payable 402,996 396,045 — — 396,045 Fannie Mae credit facilities 355,836 365,693 — — 365,693 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 94,700 94,700 — — 94,700 Fannie Mae credit facilities 280,946 280,946 — — 280,946 Unsecured debt instruments: (c) Working capital credit facility 21,350 21,350 — — 21,350 Unsecured notes 2,261,838 2,304,492 — — 2,304,492 Total liabilities $ 3,418,079 $ 3,463,639 $ — $ 413 $ 3,463,226 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 909,482 $ 909,482 $ — $ 909,482 $ — (a) See Note 2, Significant Accounting Policies . (b) See Note 10, Derivatives and Hedging Activity . (c) See Note 6, Secured Debt and Unsecured Debt, Net . See Note 8, Noncontrolling Interests . |
Derivatives and Hedging Activ31
Derivatives and Hedging Activity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
DERIVATIVES AND HEDGING ACTIVITY | |
Outstanding interest rate derivatives | As of June 30, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk ( dollars in thousands ): Number of Product Instruments Notional Interest rate swaps 4 $ 315,000 Interest rate caps 1 $ 65,197 Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in a loss of less than $0.1 million for the three and six months ended June 30, 2017 and 2016. As of June 30, 2017, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships ( dollars in thousands ): Number of Product Instruments Notional Interest rate caps 3 $ 271,076 |
Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016 ( dollars in thousands ): Asset Derivatives Liability Derivatives (included in Other assets ) (included in Other liabilities ) Fair Value at: Fair Value at: June 30, December 31, June 30, December 31, 2017 2016 2017 2016 Derivatives designated as hedging instruments: Interest rate products $ 4,377 $ 4,359 $ — $ 413 Derivatives not designated as hedging instruments: Interest rate products $ — $ 1 $ — $ — |
Effect of Company's derivative financial instruments on Consolidated Statements of Operation | The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016 ( dollars in thousands ): Gain/(Loss) Recognized in Gain/(Loss) Reclassified Interest expense Unrealized holding gain/(loss) from Accumulated OCI into (Ineffective Portion and Recognized in OCI Interest expense Amount Excluded from (Effective Portion) (Effective Portion) Effectiveness Testing) Derivatives in Cash Flow Hedging Relationships 2017 2016 2017 2016 2017 2016 Three Months Ended June 30, Interest rate products $ (507) $ (1,963) $ (308) $ (943) $ (82) $ — Six Months Ended June 30, Interest rate products $ 126 $ (2,774) $ (1,073) $ (1,878) $ (136) $ — |
Effect of Company's derivatives not designated as hedging instruments on the Consolidated Statements of Operations | Gain/(Loss) Recognized in Interest income and other income/(expense), net Derivatives Not Designated as Hedging Instruments 2017 2016 Three Months Ended June 30, Interest rate products $ — $ (3) Six Months Ended June 30, Interest rate products $ (1) $ (3) |
Offsetting of Derivative Assets | The Company has elected not to offset derivative positions in the consolidated financial statements. The tables below present the effect on its financial position had the Company made the election to offset its derivative positions as of June 30, 2017 and December 31, 2016 (dollars in thousands): Gross Net Amounts of Gross Amounts Not Offset Amounts Assets in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Assets Assets Sheets (a) Instruments Received Net Amount June 30, 2017 $ 4,377 $ — $ 4,377 $ — $ — $ 4,377 December 31, 2016 $ 4,360 $ — $ 4,360 $ (221) $ — $ 4,139 (a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
Offsetting of Derivative Liabilities | Gross Net Amounts of Gross Amounts Not Offset Amounts Liabilities in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Liabilities Liabilities Sheets (a) Instruments Posted Net Amount June 30, 2017 $ — $ — $ — $ — $ — $ — December 31, 2016 $ 413 $ — $ 413 $ (221) $ — $ 192 Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
Real estate commitments | The following summarizes the Company’s real estate commitments at June 30, 2017 ( dollars in thousands ): Expected Average Number of Costs Incurred to Costs Ownership Properties Date (a) to Complete Stake Wholly-owned — under development 2 $ 465,729 (b) $ 242,771 100 % Wholly-owned — redevelopment 1 6,171 (b) 3,329 100 % Joint ventures: Unconsolidated joint ventures 5 430,918 52,257 (c) 50 % Participating loan investments 1 93,984 (d) — — % Preferred equity investments 4 64,532 (e) 18,247 (f) 48 % (g) Other investments 1 10,560 27,999 (h) — % Total $ 1,071,894 $ 344,603 (a) Represents 100% of project costs incurred as of June 30, 2017. (b) Costs incurred as of June 30, 2017 include $ 36.7 million and $ 2.2 million of accrued fixed assets for development and redevelopment, respectively. (c) Represents UDR’s proportionate share of expected remaining costs to complete the developments. (d) Represents the participating loan balance funded as of June 30, 2017. (e) Represents UDR’s investment in the West Coast Development Joint Ventures and 1532 Harrison for the properties under development as of June 30, 2017. (f) Represents UDR’s remaining commitment for 1532 Harrison. (g) Represents UDR’s average ownership stake in the West Coast Development Joint Ventures only and does not include UDR’s preferred equity interest in 1532 Harrison. (h) Represents UDR’s remaining commitment for The Portals. |
Reportable Segment (Tables)
Reportable Segment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
REPORTABLE SEGMENTS | |
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | The following table details rental income and NOI for UDR’s reportable segments for the three and six months ended June 30, 2017 and 2016, and reconciles NOI to Net Income/(Loss) Attributable to UDR, Inc. in the Consolidated Statements of Operations (dollars in thousands) : Three Months Ended Six Months Ended June 30, (a) June 30, (b) 2017 2016 2017 2016 Reportable apartment home segment rental income Same-Store Communities West Region $ 83,222 $ 79,566 $ 165,442 $ 157,973 Mid-Atlantic Region 57,199 55,586 104,620 101,288 Northeast Region 37,732 36,749 75,653 73,209 Southeast Region 29,149 27,702 57,806 54,839 Southwest Region 10,685 10,237 21,365 20,363 Non-Mature Communities/Other 26,671 26,328 61,043 60,453 Total segment and consolidated rental income $ 244,658 $ 236,168 $ 485,929 $ 468,125 Reportable apartment home segment NOI Same-Store Communities West Region $ 62,658 $ 58,819 $ 124,552 $ 117,963 Mid-Atlantic Region 40,106 39,039 72,928 69,450 Northeast Region 27,151 26,983 54,052 53,343 Southeast Region 20,059 19,081 39,720 37,877 Southwest Region 6,613 6,344 13,293 12,676 Non-Mature Communities/Other 18,036 17,049 41,561 40,140 Total segment and consolidated NOI 174,623 167,315 346,106 331,449 Reconciling items: Joint venture management and other fees 3,321 2,618 5,891 5,476 Property management (6,728) (6,494) (13,363) (12,873) Other operating expenses (2,369) (1,892) (4,060) (3,644) Real estate depreciation and amortization (108,450) (105,937) (213,482) (211,276) General and administrative (11,434) (10,835) (24,509) (24,679) Casualty-related (charges)/recoveries, net (1,191) (1,629) (1,693) (1,629) Other depreciation and amortization (1,567) (1,486) (3,175) (3,039) Income/(loss) from unconsolidated entities (1,426) 325 9,772 1,004 Interest expense (33,866) (30,678) (64,405) (61,782) Interest income and other income/(expense), net 515 540 942 971 Tax (provision)/benefit, net (366) 402 (698) 805 Gain/(loss) on sale of real estate owned, net of tax — 7,315 2,132 10,385 Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (854) (1,610) (3,192) (2,515) Net (income)/loss attributable to noncontrolling interests (51) (8) (142) (314) Net income/(loss) attributable to UDR, Inc. $ 10,157 $ 17,946 $ 36,124 $ 28,339 (a) Same-Store Community population consisted of 36,540 apartment homes. (b) Same-Store Community population consisted of 35,689 apartment homes. |
Details of assets of UDR's reportable segments | The following table details the assets of UDR’s reportable segments as of June 30, 2017 and December 31, 2016 (dollars in thousands) : June 30, December 31, 2017 2016 Reportable apartment home segment assets: Same-Store Communities: West Region $ 2,954,555 $ 2,938,073 Mid-Atlantic Region 2,434,358 2,427,948 Northeast Region 1,860,934 1,857,193 Southeast Region 752,902 746,762 Southwest Region 286,145 283,260 Non-Mature Communities/Other 1,600,026 1,362,517 Total segment assets 9,888,920 9,615,753 Accumulated depreciation (3,132,031) (2,923,625) Total segment assets — net book value 6,756,889 6,692,128 Reconciling items: Cash and cash equivalents 1,411 2,112 Restricted cash 19,602 19,994 Notes receivable, net 17,290 19,790 Investment in and advances to unconsolidated joint ventures, net 843,167 827,025 Other assets 129,575 118,535 Total consolidated assets $ 7,767,934 $ 7,679,584 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Other Interest and Dividend Income | $ 0.5 | $ 0.5 | $ 0.9 | $ 0.8 | |
Limited partnership units owned | 183,350,924 | 183,350,924 | 183,278,698 | ||
Deferred Tax Assets, Net | $ 0.3 | $ 0.3 | $ 0.6 | ||
UDR Lighthouse DownREIT L.P. [Member] | |||||
Operating Partnership outstanding units | 32,367,380 | 32,367,380 | |||
United Dominion Reality, L.P. | |||||
Limited partnership units owned | 183,240,041 | 183,240,041 | 183,167,815 | ||
Operating Partnership outstanding units | 183,350,924 | 183,350,924 | |||
United Dominion Reality, L.P. | |||||
Operating Partnership outstanding units | 183,350,924 | 183,350,924 | |||
United Dominion Reality, L.P. | UDR Lighthouse DownREIT L.P. [Member] | |||||
Operating Partnership outstanding units | 13,470,651 | 13,470,651 | |||
Percentage of units outstanding in Heritage OP | 41.60% | 41.60% | |||
Limited Partner | UDR Lighthouse DownREIT L.P. [Member] | |||||
Operating Partnership outstanding units | 15,717,169 | 15,717,169 | |||
Percentage of units outstanding in Heritage OP | 48.60% | 48.60% | |||
Limited Partner | United Dominion Reality, L.P. | |||||
Limited partnership units owned | 174,233,691 | 174,233,691 | |||
General Partners Capital Account Units Owned Percentage | 95.00% | 95.00% | |||
Percentage of units outstanding in Heritage OP | 95.00% | 95.00% | |||
General Partner | UDR Lighthouse DownREIT L.P. [Member] | |||||
Operating Partnership outstanding units | 16,650,211 | 16,650,211 | |||
General Partners Capital Account Units Owned Percentage | 51.40% | 51.40% | |||
Non-affiliated Partners | |||||
Limited partnership units owned | 7,365,562 | 7,365,562 | 7,296,943 | ||
Non-affiliated Partners | United Dominion Reality, L.P. | |||||
Limited partnership units owned | 9,117,233 | 9,117,233 | 9,048,614 | ||
General Partners Capital Account Units Owned Percentage | 5.00% | 5.00% | |||
Percentage of units outstanding in Heritage OP | 5.00% | 5.00% | 4.90% |
Significant Accounting Polici35
Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jan. 01, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Accounting Policies [Line Items] | ||||||
Notes receivable, net | $ 17,290 | $ 17,290 | $ 19,790 | |||
Significant Accounting Policies (Textual) [Abstract] | ||||||
Distributions received from unconsolidated entities | 26,210 | $ 13,663 | ||||
Note receivable interest income | 500 | $ 500 | 900 | 800 | ||
Comprehensive (loss)/income attributable to non-controlling interests | 121 | |||||
Current Income Tax Expense (Benefit) | 0 | |||||
Deferred Tax Assets, Net | $ 300 | 300 | 600 | |||
Interest Income, Related Party | $ 0 | |||||
Note Due February 2020 [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Note receivable interest rate | 10.00% | 10.00% | ||||
Notes receivable, net | $ 12,994 | $ 12,994 | 12,994 | |||
Significant Accounting Policies (Textual) [Abstract] | ||||||
Notes receivable | 13,000 | 13,000 | ||||
Note maturity public capital threshold | 5,000 | |||||
Note Due July 2017 [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Notes receivable, net | 2,500 | |||||
Significant Accounting Policies (Textual) [Abstract] | ||||||
Notes receivable | $ 2,500 | $ 2,500 | ||||
Note due October 2020 [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Note receivable interest rate | 8.00% | 8.00% | ||||
Notes receivable, net | $ 1,296 | $ 1,296 | 1,296 | |||
Significant Accounting Policies (Textual) [Abstract] | ||||||
Notes receivable | $ 2,000 | 2,000 | ||||
Note maturity public capital threshold | $ 10,000 | |||||
Note Due April 2021 [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Note receivable interest rate | 10.00% | 10.00% | ||||
Notes receivable, net | $ 3,000 | $ 3,000 | $ 3,000 | |||
Significant Accounting Policies (Textual) [Abstract] | ||||||
Notes receivable | 15,000 | 15,000 | ||||
Note maturity public capital threshold | 25,000 | |||||
Redeemable Noncontrolling Interest [Member] | ||||||
Significant Accounting Policies (Textual) [Abstract] | ||||||
Comprehensive (loss)/income attributable to non-controlling interests | $ (100) | $ (100) | $ 100 | $ (600) | ||
Distributions in Excess of Net Income | ASU 2016-09 | ||||||
Significant Accounting Policies (Textual) [Abstract] | ||||||
Distributions received from unconsolidated entities | $ 600 |
Real Estate Owned - Summarizes
Real Estate Owned - Summarizes the carrying amounts for our real estate owned (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 1,788,391 | $ 1,801,576 |
Land Improvements | 183,796 | 178,701 |
Depreciable property - held and used: | ||
Building, Improvements, and Furniture, Fixtures and Equipment | 7,451,004 | 7,291,570 |
Under development: | ||
Real estate under development | 465,301 | 342,282 |
Real estate owned | 9,888,920 | 9,615,753 |
Accumulated depreciation | (3,132,031) | (2,923,625) |
Real estate owned, net | 6,756,889 | 6,692,128 |
Land | ||
Under development: | ||
Real estate under development | 111,028 | 111,028 |
Real estate held for disposition | 1,104 | |
Construction in progress | ||
Under development: | ||
Real estate under development | $ 354,701 | 231,254 |
Building and improvements | ||
Under development: | ||
Real estate held for disposition | $ 520 |
Real Estate Owned - Acquisition
Real Estate Owned - Acquisitions and Dispositions (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($)statecommunityitem | Mar. 31, 2017USD ($)item | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)statecommunityitem | Jun. 30, 2016USD ($) | Dec. 31, 2016 | |
Real Estate Properties [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 97,000 | $ 97,000 | ||||
Investment in unconsolidated joint ventures | $ 67,509 | $ 20,635 | ||||
Real Estate Owned (Textual) [Abstract] | ||||||
Number of states in which there are owned and consolidated communities | state | 10 | 10 | ||||
Number of apartment homes owned and consolidated by the Company | item | 39,822 | 39,822 | ||||
Number of Real Estate Properties | community | 128 | 128 | ||||
Development costs excluding direct costs and capitalized interest | $ 1,700 | $ 2,700 | $ 4,400 | 4,700 | ||
Interest capitalized during period | 4,600 | 3,800 | 9,400 | 8,000 | ||
Other Cost and Expense, Operating | 2,369 | 1,892 | 4,060 | 3,644 | ||
Proceeds from Sale of Property, Plant, and Equipment | 3,500 | |||||
Payments for (Proceeds from) Investments | 3,300 | |||||
Gain/(loss) on sale of real estate owned, net of tax | 7,315 | 2,132 | 10,385 | |||
Casualty-related (recoveries)/charges, net | $ 1,191 | 1,629 | $ 1,693 | 1,629 | ||
CityLine [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Number of Apartment Homes Acquired | item | 244 | 244 | ||||
Investment in unconsolidated joint ventures | $ 66,000 | $ 66,000 | ||||
United Dominion Reality, L.P. | ||||||
Real Estate Owned (Textual) [Abstract] | ||||||
Number of states in which there are owned and consolidated communities | state | 8 | 8 | ||||
Number of apartment homes owned and consolidated by the Company | item | 16,698 | 16,698 | ||||
Number of Real Estate Properties | community | 54 | 54 | ||||
Development costs excluding direct costs and capitalized interest | $ 100 | 300 | $ 400 | 600 | ||
Interest capitalized during period | 100 | 100 | 100 | 200 | ||
Other Cost and Expense, Operating | 2,128 | 1,519 | 3,676 | 3,019 | ||
Casualty-related (recoveries)/charges, net | $ 1,191 | $ 465 | $ 1,744 | $ 465 | ||
Operating Community [Member] | Unconsolidated Joint Venture Vitruvian Park [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | |||
Real Estate Owned (Textual) [Abstract] | ||||||
Number of Real Estate Properties | community | 3 | 3 | ||||
Operating Community [Member] | Unconsolidated Joint Venture UDR MetLife II Partnership [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | |||
Real Estate Owned (Textual) [Abstract] | ||||||
Number of Real Estate Properties | community | 18 | 18 | ||||
Development Community [Member] | Unconsolidated Joint Venture Vitruvian Park [Member] | ||||||
Real Estate Owned (Textual) [Abstract] | ||||||
Number of Real Estate Properties | community | 1 | 1 | ||||
Land, Buildings and Improvements [Member] | Unconsolidated Joint Venture UDR MetLife II Partnership [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Property, Plant and Equipment, Additions | $ 12,200 | |||||
Subsequent Investment [Member] | CityLine [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 100.00% | 100.00% | 100.00% | |||
Initial Investment [Member] | CityLine [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% |
Joint Ventures and Partnershi38
Joint Ventures and Partnerships - Summary (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($)community | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)community | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | May 31, 2015community | |
Financial information relating to unconsolidated joint ventures operations | ||||||
Income (Loss) from Equity Method Investments, Total | $ (1,426) | $ 325 | $ 9,772 | $ 1,004 | ||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
Investment in unconsolidated entities | 843,167 | 843,167 | $ 827,025 | |||
Deferred gains on the sale of depreciable property | $ 10,300 | $ 10,300 | 9,500 | |||
Number of Real Estate Properties | community | 128 | 128 | ||||
Investment in and advances to unconsolidated joint ventures, net | $ 843,167 | $ 843,167 | 827,025 | |||
Unconsolidated Joint Ventures [Member] | ||||||
Financial information relating to unconsolidated joint ventures operations | ||||||
Total revenues | 61,175 | 58,153 | 119,699 | 113,190 | ||
Equity Method Investment Summarized Financial Information Property Operating Expense | (22,836) | (22,981) | (44,670) | (46,394) | ||
Equity Method Investment Summarized Financial Information Depreciation Amortization | (24,785) | (21,770) | (48,117) | (40,713) | ||
Income (Loss) from Equity Method Investments, Total | 13,554 | 13,402 | 26,912 | 26,083 | ||
Equity Method Investment Summarized Financial Information Interest expense | (18,949) | (17,005) | (36,640) | (33,184) | ||
Equity Method Investment, Summarized Financial Information, Other Income (Expense) | (2) | (4) | ||||
Net income /(loss) | (5,395) | (3,605) | (9,728) | (7,105) | ||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
Total real estate, net | 2,912,814 | 2,912,814 | 2,901,067 | |||
Equity Method Investment Summarized Financial Information Cash and cash equivalents | 33,523 | 33,523 | 32,503 | |||
Equity Method Investment Summarized Financial Information Other assets | 21,295 | 21,295 | 19,047 | |||
Equity Method Investment, Summarized Financial Information, Assets, Total | 2,967,632 | 2,967,632 | 2,952,617 | |||
Amount due to UDR | 1,530 | 1,530 | 521 | |||
Third party debt | 1,837,639 | 1,837,639 | 1,794,379 | |||
Equity Method Investment Summarized Financial Information Accounts payable and accrued liabilities | 66,197 | 66,197 | 66,931 | |||
Equity Method Investment, Summarized Financial Information, Liabilities, Total | 1,905,366 | 1,905,366 | 1,861,831 | |||
Total equity | 1,062,266 | 1,062,266 | 1,091,326 | |||
Investment in unconsolidated entities | 570,673 | 570,673 | 582,719 | |||
Preferred Equity Investment West Coast Development JV [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
Equity Method Investment, Ownership Percentage | 48.00% | |||||
Number of Real Estate Properties | community | 5 | |||||
Operating Community [Member] | Unconsolidated Joint Venture UDR MetLife II Partnership [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
Investment in unconsolidated entities | $ 309,586 | $ 309,586 | $ 311,282 | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | |||
Number of apartment homes | community | 4,059 | 4,059 | ||||
Number of Real Estate Properties | community | 18 | 18 | ||||
Operating Community [Member] | Unconsolidated Joint Venture Vitruvian Park [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
Investment in unconsolidated entities | $ 73,317 | $ 73,317 | $ 72,414 | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | |||
Number of apartment homes | community | 1,513 | 1,513 | ||||
Number of Real Estate Properties | community | 3 | 3 | ||||
Operating Community [Member] | Unconsolidated Joint Venture Three Washington DC [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
Investment in unconsolidated entities | $ 10,991 | $ 10,991 | $ 12,835 | |||
Equity Method Investment, Ownership Percentage | 30.00% | 30.00% | 30.00% | |||
Number of apartment homes | community | 660 | 660 | ||||
Number of Real Estate Properties | community | 3 | 3 | ||||
Operating Community [Member] | Unconsolidated Joint Venture Other MetLife [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
Investment in unconsolidated entities | $ 142,363 | $ 142,363 | $ 160,979 | |||
Equity Method Investment, Ownership Percentage | 50.60% | 50.60% | 50.60% | |||
Number of apartment homes | community | 1,437 | 1,437 | ||||
Number of Real Estate Properties | community | 2 | 2 | ||||
Land Parcel [Member] | Unconsolidated Joint Venture UDR Met Life I Partnership [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
Number of Real Estate Properties | community | 1 | 1 | ||||
Land Parcel [Member] | Unconsolidated Joint Venture Vitruvian Park [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
Number of Real Estate Properties | community | 5 | 5 | ||||
Development Community [Member] | Unconsolidated Joint Venture UDR Met Life I Partnership [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
Investment in unconsolidated entities | $ 34,416 | $ 34,416 | $ 25,209 | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | |||
Number of apartment homes | community | 150 | 150 | ||||
Development Community [Member] | Unconsolidated Joint Venture Vitruvian Park [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
Number of Real Estate Properties | community | 1 | 1 | ||||
Development Community [Member] | Unconsolidated Joint Venture Other MetLife [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
Number of Real Estate Properties | community | 3 | 3 | ||||
Development Community [Member] | Participating Loan Investment Steele Creek Denver Colorado [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
UDR commitment | $ 93,458 | $ 93,458 | ||||
Investment in unconsolidated entities | 93,984 | 93,984 | $ 94,003 | |||
Income from Participating Loan | $ 1,550 | 1,560 | $ 3,083 | 3,079 | ||
Participating Loan, Interest Rate, Stated Percentage | 6.50% | 6.50% | ||||
Participating Loan Years to Maturity | 3 months 18 days | |||||
Development Community [Member] | Preferred Equity Investment West Coast Development JV [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
Investment in unconsolidated entities | $ 161,552 | $ 161,552 | $ 150,303 | |||
Income from Participating Loan | $ 773 | $ 1,409 | $ 13,539 | $ 3,198 | ||
Participating Loan, Interest Rate, Stated Percentage | 6.50% | 6.50% | ||||
Development Community [Member] | Preferred Equity Investment 1532 Harrison San Francisco, CA [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
UDR commitment | $ 24,645 | $ 24,645 | ||||
Investment in unconsolidated entities | 6,398 | 6,398 | ||||
Income from Participating Loan | $ 2 | $ 2 | ||||
Participating Loan, Interest Rate, Stated Percentage | 11.00% | 11.00% | ||||
Participating Loan Years to Maturity | 5 years | |||||
Development Community [Member] | Other Investment The Portals Washington, DC [Member] | ||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | ||||||
UDR commitment | $ 38,559 | $ 38,559 | ||||
Investment in unconsolidated entities | 10,560 | 10,560 | ||||
Income from Participating Loan | $ 16 | $ 16 | ||||
Participating Loan, Interest Rate, Stated Percentage | 11.00% | 11.00% | ||||
Participating Loan Years to Maturity | 4 years |
Joint Ventures and Partnershi39
Joint Ventures and Partnerships - Commitments (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
May 31, 2017USD ($)loancommunityitem | Mar. 31, 2017USD ($)item | Jun. 30, 2017USD ($)communityitem | Mar. 31, 2017USD ($)item | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)communityitem | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | May 31, 2015USD ($)community | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Casualty-related charges/(recoveries), net | $ 1,191 | $ 1,629 | $ 1,693 | $ 1,629 | |||||
Proceeds from Sale of Property, Plant, and Equipment | 3,500 | ||||||||
Gain/(loss) on sale of real estate owned | 7,315 | $ 2,132 | 10,385 | ||||||
Number of Real Estate Properties | community | 128 | 128 | |||||||
Long-term Debt | $ 3,634,648 | $ 3,634,648 | $ 3,401,478 | ||||||
Community Threshold, Period Above Occupancy Threshold | 3 months | ||||||||
Secured Debt | 806,647 | $ 806,647 | 1,130,858 | ||||||
Joint Ventures | |||||||||
Real Estate Owned Gross | 9,888,920 | 9,888,920 | 9,615,753 | ||||||
Unamortized discount | 9,700 | 9,700 | 11,200 | ||||||
First installment of payable incurred in partial consideration for acquisition of ownership interest in joint venture | 333,670 | 333,670 | |||||||
Second installment of payable incurred in partial consideration for acquisition of ownership interest in joint venture | 357,153 | 357,153 | |||||||
Interest expense | (33,866) | (30,678) | (64,405) | (61,782) | |||||
Investment in unconsolidated entities | 843,167 | 843,167 | 827,025 | ||||||
Deferred fees from the sale of properties | 10,300 | 10,300 | 9,500 | ||||||
Investment in unconsolidated joint ventures | $ 67,509 | 20,635 | |||||||
Condition for Community considered to have stabilized occupancy | 90% | ||||||||
Management fees for our involvement in the joint ventures | $ 3,300 | 2,600 | $ 5,900 | 5,400 | |||||
717 Olympic [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Casualty-related charges/(recoveries), net | $ 900 | (1,100) | |||||||
Unconsolidated Joint Venture UDR Met Life I Partnership [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of apartments of development community | item | 0 | 0 | |||||||
Unconsolidated Joint Venture 399 Fremont [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of apartments of development community | item | 726 | 726 | |||||||
Preferred Equity Investment West Coast Development JV [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity Method Investment Cost of Ownership Interest | $ 136,300 | ||||||||
Number of Real Estate Properties | community | 5 | ||||||||
Total Fixed Price Option Sales Price | $ 597,400 | ||||||||
Community Threshold, Period Above Occupancy Threshold | 90 days | ||||||||
Joint Ventures | |||||||||
Equity Method Investment, Ownership Percentage | 48.00% | ||||||||
Number of Completed Communities | community | 3 | 3 | |||||||
Number of Remaining Communities | community | 4 | 4 | |||||||
Number of Stabilized Communities | community | 2 | 2 | |||||||
Number of Non Stabilized Communities | community | 2 | 2 | |||||||
Condition for Community considered to have stabilized occupancy | 80% | ||||||||
CityLine [Member] | |||||||||
Joint Ventures | |||||||||
Investment in unconsolidated joint ventures | $ 66,000 | $ 66,000 | |||||||
Number of Apartment Homes Acquired | item | 244 | 244 | |||||||
Preferred Equity Method Investment West Coast Development JV Cityline II [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity Method Investment Cost of Ownership Interest | $ 16,100 | $ 15,500 | $ 15,500 | ||||||
Total Fixed Price Option Sales Price | $ 72,300 | $ 61,300 | |||||||
Joint Ventures | |||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | 49.00% | ||||||
Hold Period | 1 year | ||||||||
Number of Apartment Homes Acquired | 276 | 155 | |||||||
Preferred Equity Investment San Franciso California JV [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of apartment homes | item | 136 | 136 | |||||||
Equity Investment | $ 24,600 | $ 24,600 | |||||||
Preferred return (as a percent) | 11.00% | 11.00% | |||||||
Joint Ventures | |||||||||
Investment in unconsolidated entities | $ 6,400 | $ 6,400 | |||||||
Participating Loan, Interest Rate, Stated Percentage | 11.00% | 11.00% | |||||||
Third Party Developer in Washington D.C [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of apartments of development community | item | 373 | ||||||||
Long-term Debt | $ 71,000 | ||||||||
Interest rate of medium-term notes | 13.50% | ||||||||
Debt instrument term | 4 years | ||||||||
Number of extensions available | loan | 1 | ||||||||
Loan extension term | 12 months | ||||||||
Equity Method Investment, Summarized Financial Information, Liabilities | $ 38,600 | $ 10,600 | $ 10,600 | ||||||
Debt, Weighted Average Interest Rate, of Company's Committed Portion | 11 | ||||||||
Operating Community [Member] | Unconsolidated Joint Venture Vitruvian Park [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of Real Estate Properties | community | 3 | 3 | |||||||
Number of apartment homes | community | 1,513 | 1,513 | |||||||
Joint Ventures | |||||||||
Investment in unconsolidated entities | $ 73,317 | $ 73,317 | $ 72,414 | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | ||||||
Operating Community [Member] | Unconsolidated Joint Venture UDR MetLife II Partnership [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of Real Estate Properties | community | 18 | 18 | |||||||
Number of apartment homes | community | 4,059 | 4,059 | |||||||
Joint Ventures | |||||||||
Investment in unconsolidated entities | $ 309,586 | $ 309,586 | $ 311,282 | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | ||||||
Operating Community [Member] | Unconsolidated Joint Venture Three Washington DC [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of Real Estate Properties | community | 3 | 3 | |||||||
Number of apartment homes | community | 660 | 660 | |||||||
Joint Ventures | |||||||||
Investment in unconsolidated entities | $ 10,991 | $ 10,991 | $ 12,835 | ||||||
Equity Method Investment, Ownership Percentage | 30.00% | 30.00% | 30.00% | ||||||
Operating Community [Member] | Unconsolidated Joint Venture Other MetLife [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of Real Estate Properties | community | 2 | 2 | |||||||
Number of apartment homes | community | 1,437 | 1,437 | |||||||
Joint Ventures | |||||||||
Investment in unconsolidated entities | $ 142,363 | $ 142,363 | $ 160,979 | ||||||
Equity Method Investment, Ownership Percentage | 50.60% | 50.60% | 50.60% | ||||||
Development Community [Member] | Unconsolidated Joint Venture Vitruvian Park [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of Real Estate Properties | community | 1 | 1 | |||||||
Development Community [Member] | Unconsolidated Joint Venture UDR Met Life I Partnership [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of apartment homes | community | 150 | 150 | |||||||
Joint Ventures | |||||||||
Investment in unconsolidated entities | $ 34,416 | $ 34,416 | $ 25,209 | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | ||||||
Development Community [Member] | Unconsolidated Joint Venture Other MetLife [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of Real Estate Properties | community | 3 | 3 | |||||||
Development Community [Member] | Preferred Equity Investment West Coast Development JV [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Preferred return (as a percent) | 6.50% | 6.50% | |||||||
Joint Ventures | |||||||||
Investment in unconsolidated entities | $ 161,552 | $ 161,552 | $ 150,303 | ||||||
Income from Participating Loan | $ 773 | $ 1,409 | $ 13,539 | $ 3,198 | |||||
Participating Loan, Interest Rate, Stated Percentage | 6.50% | 6.50% | |||||||
Development Community [Member] | Preferred Equity Method Investment West Coast Development JV Cityline II [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Preferred return (as a percent) | 6.50% | 6.50% | |||||||
Joint Ventures | |||||||||
Participating Loan, Interest Rate, Stated Percentage | 6.50% | 6.50% | |||||||
Subsequent Investment [Member] | CityLine [Member] | |||||||||
Joint Ventures | |||||||||
Equity Method Investment, Ownership Percentage | 100.00% | 100.00% | 100.00% | 100.00% | |||||
Initial Investment [Member] | CityLine [Member] | |||||||||
Joint Ventures | |||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% |
Secured and Unsecured Debt - Su
Secured and Unsecured Debt - Summary (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017USD ($)community | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Secured debt instruments | |||
Unamortized discount | $ 9,700 | $ 9,700 | $ 11,200 |
Interest rate at end of the period | 3.67% | ||
Long-term Debt | $ 3,634,648 | 3,634,648 | 3,401,478 |
Unsecured Debt | $ 2,828,001 | 2,828,001 | 2,270,620 |
Weighted Average Years to Maturity | 5 years 1 month 6 days | ||
Line of Credit Facility, Amount Outstanding | $ 3,300 | 3,300 | 2,900 |
Fixed Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 683,217 | $ 683,217 | 756,151 |
Interest rate at end of the period | 4.39% | ||
Weighted Average Years to Maturity | 4 years 4 months 24 days | ||
Number of Communities Encumbered | community | 15 | ||
Commercial Paper | |||
Secured debt instruments | |||
Interest rate at end of the period | 1.49% | 1.50% | |
Weighted Average Years to Maturity | 1 month 6 days | ||
Borrowings outstanding at end of period | $ 240,000 | $ 240,000 | 0 |
Mortgages Notes Payable [Member] | Fixed Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 399,315 | 399,315 | |
Interest rate at end of the period | 4.04% | ||
Weighted Average Years to Maturity | 5 years 9 months 18 days | ||
Number of Communities Encumbered | community | 7 | ||
Tax Exempt Notes Payable [Member] | Variable Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 94,700 | 94,700 | 94,700 |
Interest rate at end of the period | 1.54% | ||
Weighted Average Years to Maturity | 5 years 8 months 12 days | ||
Number of Communities Encumbered | community | 2 | ||
Line Of Credit [Member] | Fixed Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 285,836 | $ 285,836 | 355,836 |
Interest rate at end of the period | 4.86% | 4.86% | |
Weighted Average Years to Maturity | 2 years 6 months | ||
Line Of Credit [Member] | Variable Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 29,034 | $ 29,034 | 280,946 |
Interest rate at end of the period | 2.61% | 2.61% | |
Weighted Average Years to Maturity | 1 year 4 months 24 days | ||
Number of Communities Encumbered | community | 1 | ||
Secured Debt [Member] | |||
Secured debt instruments | |||
Interest rate at end of the period | 3.99% | ||
Long-term Debt | $ 806,647 | $ 806,647 | 1,130,858 |
Weighted Average Years to Maturity | 4 years 6 months | ||
Number of Communities Encumbered | community | 18 | ||
Secured Debt [Member] | Fixed Rate Debt | |||
Secured debt instruments | |||
Long-term Debt | $ 683,217 | 683,217 | |
Deferred Finance Costs, Net | (1,934) | (1,934) | (2,681) |
Secured Debt [Member] | Variable Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 123,430 | 123,430 | 374,707 |
Interest rate at end of the period | 1.79% | ||
Long-term Debt | $ 123,430 | 123,430 | |
Weighted Average Years to Maturity | 4 years 8 months 12 days | ||
Number of Communities Encumbered | community | 3 | ||
Deferred Finance Costs, Net | $ (304) | (304) | (939) |
Unsecured Revolving credit facility due 2020 [Member] | |||
Secured debt instruments | |||
Weighted Average Years to Maturity | 2 years 7 months 6 days | ||
Unsecured Working Capital Credit Facility due January 2019 [Member] | |||
Secured debt instruments | |||
Interest rate at end of the period | 2.12% | ||
Weighted Average Years to Maturity | 1 year 6 months | ||
Line of Credit Facility, Amount Outstanding | $ 40,058 | 40,058 | 21,350 |
2.00% Term Loan Facility due January 2021 [Member] | |||
Secured debt instruments | |||
Interest rate at end of the period | 2.00% | ||
Senior Notes | $ 35,000 | 35,000 | 35,000 |
Weighted Average Years to Maturity | 3 years 7 months 6 days | ||
4.25% Medium-Term Notes due June 2018 [Member] | |||
Secured debt instruments | |||
Unamortized discount | $ 394 | 394 | 608 |
Interest rate at end of the period | 4.25% | ||
Senior Notes | $ 299,606 | 299,606 | 299,392 |
Weighted Average Years to Maturity | 10 months 24 days | ||
3.70% Term Notes Due October 2020 [Member] | |||
Secured debt instruments | |||
Unamortized discount | $ 26 | 26 | 30 |
Interest rate at end of the period | 3.70% | ||
Senior Notes | $ 299,974 | 299,974 | 299,970 |
Weighted Average Years to Maturity | 3 years 3 months 18 days | ||
1.98% Term Loan Facility Due January 2021 [Member] | |||
Secured debt instruments | |||
Interest rate at end of the period | 1.98% | ||
Senior Notes | $ 315,000 | 315,000 | 315,000 |
Weighted Average Years to Maturity | 3 years 7 months 6 days | ||
4.63% Medium-Term Notes due January 2022 [Member] | |||
Secured debt instruments | |||
Unamortized discount | $ 1,625 | 1,625 | 1,805 |
Interest rate at end of the period | 4.63% | ||
Senior Notes | $ 398,375 | 398,375 | 398,195 |
Weighted Average Years to Maturity | 4 years 6 months | ||
3.75 Medium-Term Notes Due July 2024 [Member] | |||
Secured debt instruments | |||
Unamortized discount | $ 730 | 730 | 782 |
Interest rate at end of the period | 3.75% | ||
Senior Notes | $ 299,270 | 299,270 | 299,218 |
Weighted Average Years to Maturity | 7 years | ||
8.50% Debentures, Due September 2024 [Member] | |||
Secured debt instruments | |||
Interest rate at end of the period | 8.50% | ||
Senior Notes | $ 15,644 | 15,644 | 15,644 |
Weighted Average Years to Maturity | 7 years 2 months 12 days | ||
4.00% Medium-Term Note due October 2025 [Member] | |||
Secured debt instruments | |||
Unamortized discount | $ 568 | 568 | 602 |
Interest rate at end of the period | 4.00% | ||
Senior Notes | $ 299,432 | 299,432 | 299,398 |
Weighted Average Years to Maturity | 8 years 3 months 18 days | ||
2.95% Medium-Term Note due September 2026 [Member] | |||
Secured debt instruments | |||
Interest rate at end of the period | 2.95% | ||
Senior Notes | $ 300,000 | 300,000 | 300,000 |
Weighted Average Years to Maturity | 9 years 2 months 12 days | ||
3.50 Medium-Term Note due July 2027 [Member] | |||
Secured debt instruments | |||
Unamortized discount | $ 705 | 705 | |
Interest rate at end of the period | 3.50% | ||
Senior Notes | $ 299,295 | 299,295 | |
Weighted Average Years to Maturity | 10 years | ||
Other [Member] | |||
Secured debt instruments | |||
Senior Notes | $ 20 | 20 | 21 |
Unsecured Debt [Member] | |||
Secured debt instruments | |||
Interest rate at end of the period | 3.49% | ||
Long-term Debt | $ 2,828,001 | 2,828,001 | |
Unsecured Debt | $ 2,828,001 | 2,828,001 | 2,270,620 |
Weighted Average Years to Maturity | 5 years 2 months 12 days | ||
Unsecured Debt [Member] | Variable Rate Debt | |||
Secured debt instruments | |||
Deferred Finance Costs, Net | $ (13,673) | $ (13,673) | (12,568) |
Mortgages Notes Payable [Member] | Mortgages Notes Payable [Member] | Fixed Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 402,996 | ||
Line Of Credit [Member] | Line Of Credit [Member] | Fixed Rate Debt | |||
Secured debt instruments | |||
Number of Communities Encumbered | community | 8 |
Secured and Unsecured Debt - Va
Secured and Unsecured Debt - Variable Rate Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | |||
Unamortized discount | $ 9,700 | $ 9,700 | $ 11,200 |
Secured credit facilities | |||
Long-term Line of Credit | $ 3,300 | 3,300 | 2,900 |
Debt Instrument Weighted Average Years to Maturity | 5 years 1 month 6 days | ||
Fannie Mae | |||
Secured credit facilities | |||
Long-term Line of Credit | $ 314,870 | 314,870 | 636,782 |
Weighted average daily borrowings during the period ended | 518,437 | 737,802 | |
Maximum daily borrowings during the period ended | $ 636,782 | $ 813,544 | |
Weighted average interest rate during the period ended | 4.10% | 3.90% | |
Interest rate at the end of the period | 4.70% | 4.70% | 3.80% |
4.25% Medium-Term Notes due June 2018 [Member] | |||
Line of Credit Facility [Line Items] | |||
Unamortized discount | $ 394 | $ 394 | $ 608 |
Secured credit facilities | |||
Debt Instrument Weighted Average Years to Maturity | 10 months 24 days | ||
4.63% Medium-Term Notes due January 2022 [Member] | |||
Line of Credit Facility [Line Items] | |||
Unamortized discount | $ 1,625 | 1,625 | 1,805 |
Secured credit facilities | |||
Debt Instrument Weighted Average Years to Maturity | 4 years 6 months | ||
3.75 Medium-Term Notes Due July 2024 [Member] | |||
Line of Credit Facility [Line Items] | |||
Unamortized discount | $ 730 | $ 730 | $ 782 |
Secured credit facilities | |||
Debt Instrument Weighted Average Years to Maturity | 7 years |
Secured and Unsecured Debt - Se
Secured and Unsecured Debt - Secured Maturities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Secured Debt, Encumbers Real Estate Owned, Amount | $ 1,700,000 | |
Secured Debt, Encumbers Real Estate Owned, Percent | 16.90% | |
Debt Instrument Weighted Average Years to Maturity | 5 years 1 month 6 days | |
Unamortized discount | $ 9,700 | $ 11,200 |
Aggregate maturities of secured debt | ||
2,018 | 333,670 | |
2,019 | 357,153 | |
2,020 | 498,076 | |
2,021 | 351,117 | |
2,022 | 401,157 | |
Total | 806,647 | 1,130,858 |
Secured Debt, Unencumbered Real Estate Owned, Amount | $ 8,200,000 | |
Secured Debt, Unencumbered Real Estate Owned, Percent | 83.10% | |
Fixed Rate Debt | ||
Debt Instrument [Line Items] | ||
Debt Instrument Weighted Average Years to Maturity | 4 years 4 months 24 days | |
3.70% Term Notes Due October 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Weighted Average Years to Maturity | 3 years 3 months 18 days | |
Unamortized discount | $ 26 | 30 |
4.63% Medium-Term Notes due January 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Weighted Average Years to Maturity | 4 years 6 months | |
Unamortized discount | $ 1,625 | 1,805 |
Mortgages Notes Payable [Member] | Fixed Rate Debt | ||
Debt Instrument [Line Items] | ||
Debt Instrument Weighted Average Years to Maturity | 5 years 9 months 18 days | |
Tax Exempt Notes Payable [Member] | Variable Rate Debt | ||
Debt Instrument [Line Items] | ||
Debt Instrument Weighted Average Years to Maturity | 5 years 8 months 12 days | |
Line Of Credit [Member] | Fixed Rate Debt | ||
Debt Instrument [Line Items] | ||
Debt Instrument Weighted Average Years to Maturity | 2 years 6 months | |
Line Of Credit [Member] | Variable Rate Debt | ||
Debt Instrument [Line Items] | ||
Debt Instrument Weighted Average Years to Maturity | 1 year 4 months 24 days | |
3.75 Medium-Term Notes Due July 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Weighted Average Years to Maturity | 7 years | |
Unamortized discount | $ 730 | $ 782 |
Secured and Unsecured Debt - Ad
Secured and Unsecured Debt - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Summary of unsecured debt | ||
Unsecured Debt, Total | $ 2,828,001 | $ 2,270,620 |
Unamortized discount | 9,700 | 11,200 |
4.63% Medium-Term Notes due January 2022 [Member] | ||
Summary of unsecured debt | ||
Senior Unsecured Notes | 398,375 | 398,195 |
Unamortized discount | 1,625 | 1,805 |
8.50% Debentures, Due September 2024 [Member] | ||
Summary of unsecured debt | ||
Senior Unsecured Notes | 15,644 | 15,644 |
4.25% Medium-Term Notes due June 2018 [Member] | ||
Summary of unsecured debt | ||
Senior Unsecured Notes | 299,606 | 299,392 |
Unamortized discount | 394 | 608 |
Other [Member] | ||
Summary of unsecured debt | ||
Senior Unsecured Notes | $ 20 | $ 21 |
Secured and Unsecured Debt - Cr
Secured and Unsecured Debt - Credit Facilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Summary of short-term bank borrowings under unsecured commercial bank credit facility | ||
Borrowings outstanding at end of period | $ 3,300 | $ 2,900 |
Unsecured Commercial Bank Credit Facility | ||
Summary of short-term bank borrowings under unsecured commercial bank credit facility | ||
Total revolving credit facility | 2,000,000 | |
Revolving Credit Facility [Member] | Unsecured Commercial Bank Credit Facility | ||
Summary of short-term bank borrowings under unsecured commercial bank credit facility | ||
Total revolving credit facility | 1,100,000 | 1,100,000 |
Weighted average daily borrowings during the period ended | 4,586 | 161,505 |
Maximum daily borrowings during the period ended | $ 120,000 | $ 340,000 |
Weighted average interest rate during the period ended | 1.60% | 1.40% |
Unsecured Working Capital Credit Facility due January 2019 [Member] | ||
Summary of short-term bank borrowings under unsecured commercial bank credit facility | ||
Total revolving credit facility | $ 75,000 | $ 75,000 |
Borrowings outstanding at end of period | 40,058 | 21,350 |
Weighted average daily borrowings during the period ended | 24,809 | 21,936 |
Maximum daily borrowings during the period ended | $ 67,799 | $ 69,633 |
Weighted average interest rate during the period ended | 1.80% | 1.40% |
Interest rate at the end of the period | 2.10% | 1.70% |
Secured and Unsecured Debt - Sh
Secured and Unsecured Debt - Short Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | |||
Interest rate at end of the period | 3.67% | ||
Commercial Paper | |||
Short-term Debt [Line Items] | |||
Total unsecured commercial paper program | $ 500,000 | $ 500,000 | |
Borrowings outstanding at end of period | $ 240,000 | 240,000 | $ 0 |
Weighted average daily borrowings during the period ended | 186,743 | ||
Maximum daily borrowings during the period ended | $ 340,000 | ||
Weighted average interest rate during the period ended | 1.30% | 1.30% | |
Interest rate at end of the period | 1.49% | 1.50% |
Secured and Unsecured Debt - Un
Secured and Unsecured Debt - Unsecured Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Aggregate maturities of unsecured debt | ||
2,017 | $ 242,228 | |
2,018 | 333,670 | |
2,019 | 357,153 | |
2,020 | 498,076 | |
2,021 | 351,117 | |
2,022 | 401,157 | |
2,023 | 41,245 | |
2,024 | 315,644 | |
2,025 | 427,600 | |
2,026 | 350,000 | |
Thereafter | 327,000 | |
Subtotal | 3,644,890 | |
Non-cash (a) | 10,242 | |
Long-term Debt, Total | 3,634,648 | $ 3,401,478 |
Secured Debt [Member] | ||
Aggregate maturities of unsecured debt | ||
2,017 | 2,228 | |
2,018 | 33,670 | |
2,019 | 317,095 | |
2,020 | 198,076 | |
2,021 | 1,117 | |
2,022 | 1,157 | |
2,023 | 41,245 | |
2,025 | 127,600 | |
2,026 | 50,000 | |
Thereafter | 27,000 | |
Subtotal | 799,188 | |
Non-cash (a) | (7,459) | |
Long-term Debt, Total | 806,647 | $ 1,130,858 |
Unsecured Debt [Member] | ||
Aggregate maturities of unsecured debt | ||
2,017 | 240,000 | |
2,018 | 300,000 | |
2,019 | 40,058 | |
2,020 | 300,000 | |
2,021 | 350,000 | |
2,022 | 400,000 | |
2,024 | 315,644 | |
2,025 | 300,000 | |
2,026 | 300,000 | |
Thereafter | 300,000 | |
Subtotal | 2,845,702 | |
Non-cash (a) | 17,701 | |
Long-term Debt, Total | 2,828,001 | |
Fixed Rate Debt | Secured Debt [Member] | ||
Aggregate maturities of unsecured debt | ||
2,017 | 2,228 | |
2,018 | 4,636 | |
2,019 | 249,395 | |
2,020 | 198,076 | |
2,021 | 1,117 | |
2,022 | 1,157 | |
2,023 | 41,245 | |
2,025 | 127,600 | |
2,026 | 50,000 | |
Subtotal | 675,454 | |
Non-cash (a) | (7,763) | |
Long-term Debt, Total | 683,217 | |
Variable Rate Debt | Secured Debt [Member] | ||
Aggregate maturities of unsecured debt | ||
2,018 | 29,034 | |
2,019 | 67,700 | |
Thereafter | 27,000 | |
Subtotal | 123,734 | |
Non-cash (a) | 304 | |
Long-term Debt, Total | $ 123,430 |
Secured and Unsecured Debt - De
Secured and Unsecured Debt - Debt Covenants (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($)loan | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)loan | Jun. 30, 2016USD ($) | Jun. 16, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||
Amortization of Financing Costs | $ 1,100 | $ 1,200 | $ 2,100 | $ 2,400 | ||
Secured Debt (Textual) [Abstract] | ||||||
Secured debt amount which encumbers real estate owned based upon book value | $ 1,700,000 | $ 1,700,000 | ||||
Percentage of secured debt which encumbers real estate owned based upon book value | 16.90% | 16.90% | ||||
Secured debt amount of real estate owned which is unencumbered | $ 8,200,000 | $ 8,200,000 | ||||
Percentage of secured debt of real estate owned which is unencumbered | 83.10% | 83.10% | ||||
Interest rate at end of the period | 3.67% | |||||
Unamortized fair market adjustment | $ 9,700 | $ 9,700 | $ 11,200 | |||
Long-term Line of Credit | 3,300 | 3,300 | 2,900 | |||
Long-term Commercial Paper | 500,000 | 500,000 | ||||
Secured Debt | 806,647 | 806,647 | 1,130,858 | |||
Repayments of Secured Debt | 324,118 | 145,499 | ||||
Interest expense | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Prepayment costs | 4,300 | 5,800 | ||||
Fixed Rate Debt | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Secured debt including debt on real estate held for sale | $ 683,217 | 683,217 | 756,151 | |||
Interest rate at end of the period | 4.39% | |||||
Variable Rate Debt | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Repayments of Secured Debt | $ 275,300 | |||||
Unsecured Debt [Member] | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Interest rate at end of the period | 3.49% | |||||
Line of Credit Facility, Interest Rate Description | 95 | |||||
Line of Credit Facility, Description Range Low | 90 | 90 | ||||
Line of Credit Facility, Description Range High | 175 | 175 | ||||
Unsecured Working Capital Credit Facility due January 2019 [Member] | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Credit facilities with aggregate commitment | $ 75,000 | $ 75,000 | 75,000 | |||
Interest rate at end of the period | 2.12% | |||||
Long-term Line of Credit | $ 40,058 | 40,058 | 21,350 | |||
3.75 Medium-Term Notes Due July 2024 [Member] | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Interest rate at end of the period | 3.75% | |||||
Unamortized fair market adjustment | $ 730 | 730 | 782 | |||
Senior Notes | 299,270 | 299,270 | 299,218 | |||
Mortgages Notes Payable [Member] | Fixed Rate Debt | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Secured debt including debt on real estate held for sale | $ 399,315 | 399,315 | ||||
Interest rate at end of the period | 4.04% | |||||
Debt Assumed As Part of Acquisition [Member] | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Amortization of Debt Discount (Premium) | $ 700 | $ 700 | $ 1,500 | $ 1,500 | ||
Tax Exempt Notes Payable [Member] | Fixed Rate Debt | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Debt Instrument, Maturity Date Range, Start | Aug. 1, 2019 | |||||
Debt instrument, maturity date range, end | Mar. 1, 2032 | |||||
Tax Exempt Notes Payable [Member] | Variable Rate Debt | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Secured debt including debt on real estate held for sale | $ 94,700 | $ 94,700 | 94,700 | |||
Interest rate at end of the period | 1.54% | |||||
Line Of Credit [Member] | Fixed Rate Debt | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Secured debt including debt on real estate held for sale | $ 285,836 | $ 285,836 | 355,836 | |||
Interest rate at end of the period | 4.86% | 4.86% | ||||
Debt instrument, maturity date range, end | Jul. 1, 2020 | |||||
Line Of Credit [Member] | Variable Rate Debt | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Secured debt including debt on real estate held for sale | $ 29,034 | $ 29,034 | 280,946 | |||
Interest rate at end of the period | 2.61% | 2.61% | ||||
Tax-exempt secured notes payable | Variable Rate Debt | Maximum | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Notes payable maximum interest rates range | 1.54% | 1.54% | ||||
Tax-exempt secured notes payable | Variable Rate Debt | Minimum | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Notes payable maximum interest rates range | 1.52% | 1.52% | ||||
Fannie Mae | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Long-term Line of Credit | $ 314,870 | $ 314,870 | 636,782 | |||
Revolving Credit Facility [Member] | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Line of Credit Facility, Interest Rate Description | 90 | |||||
Line of Credit Facility, Description Range Low | 85 | 85 | ||||
Line of Credit Facility, Description Range High | 155 | 155 | ||||
Line of Credit Facility, Commitment Fee Description Range Low | 12.5 | 12.5 | ||||
Line of Credit Facility, Commitment Fee Description Range High | 30 | 30 | ||||
Line of Credit Facility, Commitment Fee Description | 15 | |||||
4.00% Medium-Term Note due October 2025 [Member] | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Interest rate at end of the period | 4.00% | |||||
Unamortized fair market adjustment | $ 568 | $ 568 | 602 | |||
Portion of Medium Term Note subject to Interest Rate Swaps | $ 200,000 | $ 200,000 | ||||
Long-term Debt, Weighted Average Interest Rate | 4.55% | 4.55% | ||||
Senior Notes | $ 299,432 | $ 299,432 | 299,398 | |||
3.50% senior Unsecured Medium Term Note [Member] | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Medium-term notes | $ 300 | |||||
Interest rate of medium-term notes | 3.50% | |||||
Percentage of principal amount at issuance | 99.764 | |||||
2.95% Medium-Term Note due September 2026 [Member] | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Interest rate at end of the period | 2.95% | |||||
Senior Notes | $ 300,000 | 300,000 | 300,000 | |||
Unsecured Commercial Bank Credit Facility | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Credit facilities with aggregate commitment | $ 2,000,000 | $ 2,000,000 | ||||
Number of Extensions of loan | loan | 2 | 2 | ||||
Extension period of option on loan | 6 months | |||||
Debt Instrument, Maturity Date | Jan. 31, 2020 | |||||
Unsecured Commercial Bank Credit Facility | Unsecured Debt [Member] | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Credit facilities with aggregate commitment | $ 350,000 | $ 350,000 | ||||
Debt Instrument, Maturity Date | Jan. 29, 2021 | |||||
Unsecured Commercial Bank Credit Facility | Revolving Credit Facility [Member] | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Credit facilities with aggregate commitment | 1,100,000 | $ 1,100,000 | 1,100,000 | |||
Unsecured Working Capital Credit Facility due January 2019 [Member] | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Credit facilities with aggregate commitment | $ 75,000 | $ 75,000 | 75,000 | |||
Line of Credit Facility, Interest Rate Description | 90 | |||||
Line of Credit Facility, Description Range Low | 85 | 85 | ||||
Line of Credit Facility, Description Range High | 155 | 155 | ||||
Line Of Credit [Member] | Line Of Credit [Member] | Fixed Rate Debt | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Debt Instrument, Maturity Date Range, Start | Dec. 1, 2018 | |||||
Line Of Credit [Member] | Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Line Of Credit [Member] | Fixed Rate Debt | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Secured debt including debt on real estate held for sale | $ 285,836 | $ 285,836 | 355,836 | |||
Line Of Credit [Member] | Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Line Of Credit [Member] | Variable Rate Debt | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Secured debt including debt on real estate held for sale | $ 29,034 | $ 29,034 | 280,946 | |||
Mortgages Notes Payable [Member] | Fixed Rate Debt | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Debt Instrument, Maturity Date Range, Start | May 1, 2019 | |||||
Debt instrument, maturity date range, end | Nov. 5, 2026 | |||||
Mortgages Notes Payable [Member] | Fixed Rate Debt | Maximum | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Notes payable maximum interest rates range | 5.86% | 5.86% | ||||
Mortgages Notes Payable [Member] | Fixed Rate Debt | Minimum | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Notes payable maximum interest rates range | 3.15% | 3.15% | ||||
Mortgages Notes Payable [Member] | Mortgages Notes Payable [Member] | Fixed Rate Debt | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Secured debt including debt on real estate held for sale | 402,996 | |||||
Mortgages Notes Payable [Member] | Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Mortgages Notes Payable [Member] | Fixed Rate Debt | ||||||
Secured Debt (Textual) [Abstract] | ||||||
Secured debt including debt on real estate held for sale | $ 399,315 | $ 399,315 | $ 402,996 |
Secured and Unsecured Debt - Ot
Secured and Unsecured Debt - Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||
Amortization of Financing Costs | $ 1,100 | $ 1,200 | $ 2,100 | $ 2,400 | |
Unsecured Debt (Textual) [Abstract] | |||||
Line of Credit Facility, Amount Outstanding | 3,300 | 3,300 | $ 2,900 | ||
Unamortized discount | $ 9,700 | 9,700 | 11,200 | ||
Debt Instrument, Interest Rate During Period | 3.67% | ||||
3.70% Term Notes Due October 2020 [Member] | |||||
Unsecured Debt (Textual) [Abstract] | |||||
Unamortized discount | $ 26 | 26 | 30 | ||
Senior Notes | $ 299,974 | 299,974 | 299,970 | ||
Debt Instrument, Interest Rate During Period | 3.70% | ||||
4.63% Medium-Term Notes due January 2022 [Member] | |||||
Unsecured Debt (Textual) [Abstract] | |||||
Unamortized discount | $ 1,625 | 1,625 | 1,805 | ||
Senior Notes | $ 398,375 | 398,375 | $ 398,195 | ||
Debt Instrument, Interest Rate During Period | 4.63% | ||||
Unsecured Commercial Bank Credit Facility | |||||
Unsecured Debt (Textual) [Abstract] | |||||
Total revolving credit facility | $ 2,000,000 | $ 2,000,000 | |||
Debt Instrument, Maturity Date | Jan. 31, 2020 |
Income_(Loss) Per Share (Detail
Income/(Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Income/(loss) from continuing operations | $ 11,062 | $ 12,249 | $ 37,326 | $ 20,783 |
Gain/(loss) on sale of real estate owned, net of tax | 7,315 | 2,132 | 10,385 | |
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | (854) | (1,610) | (3,192) | (2,515) |
Net (income)/loss attributable to noncontrolling interests | (51) | (8) | (142) | (314) |
Net income/(loss) attributable to UDR, Inc. | 10,157 | 17,946 | 36,124 | 28,339 |
Distributions to preferred stockholders — Series E (Convertible) | (929) | (929) | (1,858) | (1,858) |
Net income/(loss) attributable to common stockholders | $ 9,228 | $ 17,017 | $ 34,266 | $ 26,481 |
Denominator for earnings per share - basic and diluted: | ||||
Weighted average common shares outstanding | 267,495 | 267,113 | 267,449 | 265,234 |
Non-vested restricted stock awards | (523) | (845) | (568) | (872) |
Denominator for basic income/(loss) per share | 266,972 | 266,268 | 266,881 | 264,362 |
Incremental shares issuable from assumed conversion of stock options, unvested LTIP Units and unvested restricted stock | 1,887 | 1,906 | 1,861 | 1,865 |
Denominator for diluted income/(loss) per share | 268,859 | 268,174 | 268,742 | 266,227 |
Income/(loss) per weighted average common share - basic | $ 0.03 | $ 0.06 | $ 0.13 | $ 0.10 |
Income/(loss) per weighted average common share - diluted | $ 0.03 | $ 0.06 | $ 0.13 | $ 0.10 |
OP Units [Member] | ||||
Denominator for earnings per share - basic and diluted: | ||||
Antidilutive securities | 24,864 | 25,190 | 24,913 | 25,191 |
Convertible Preferred Stock [Member] | ||||
Denominator for earnings per share - basic and diluted: | ||||
Antidilutive securities | 3,028 | 3,028 | 3,028 | 3,028 |
Stock options and unvested restricted stock [Member] | ||||
Denominator for earnings per share - basic and diluted: | ||||
Antidilutive securities | 1,887 | 1,906 | 1,861 | 1,865 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Redeemable noncontrolling interests in the Operating Partnership | ||||
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, beginning for year | $ 909,482 | |||
Mark-to-market adjustment to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | (74,616) | |||
Conversion of OP Units/DownREIT Units to Common Stock | 6,135 | |||
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | $ (854) | $ (1,610) | (3,192) | $ (2,515) |
Net income/(loss) attributable to noncontrolling interests | (100) | $ (100) | 141 | $ (300) |
Distributions to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | 15,796 | |||
Vesting of Long-Term Incentive Plan Units | 2,317 | |||
Allocation of other comprehensive income/(loss) | 121 | |||
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, end of the year | $ 967,797 | $ 967,797 |
Fair Value of Derivatives and51
Fair Value of Derivatives and Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notes receivable, net | $ 17,290 | $ 17,290 | $ 19,790 |
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Derivative Asset | 4,377 | 4,377 | 4,360 |
Derivative Liability | 413 | ||
Secured debt instruments - variable rate | |||
Long-term Line of Credit | 3,300 | 3,300 | 2,900 |
Unsecured debt instruments | |||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 967,797 | 967,797 | 909,482 |
Redeemable noncontrolling interests in the Operating Partnership (d) | 967,797 | 967,797 | 909,482 |
Transfer between the levels | 0 | 0 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notes receivable, net | 17,290 | 17,290 | 19,790 |
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Total assets | 21,667 | 21,667 | 24,150 |
Unsecured debt instruments | |||
Total liabilities | 3,650,559 | 3,650,559 | 3,418,079 |
Redeemable noncontrolling interests in the Operating Partnership (d) | 967,797 | 967,797 | 909,482 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Interest rate contracts | Fair Value, Measurements, Recurring | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Derivatives - Interest rate contracts | 4,377 | 4,377 | 4,360 |
Derivatives - Interest rate contracts (b) | 413 | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Commercial bank | Fair Value, Measurements, Recurring | |||
Unsecured debt instruments | |||
Unsecured debt instruments (c) | 40,058 | 40,058 | 21,350 |
Borrowings outstanding at end of period | 240,000 | 240,000 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Senior Unsecured Notes [Member] | Fair Value, Measurements, Recurring | |||
Unsecured debt instruments | |||
Unsecured debt instruments (c) | 2,561,616 | 2,561,616 | 2,261,838 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notes receivable, net | 17,286 | 17,286 | 19,645 |
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Total assets | 21,663 | 21,663 | 24,005 |
Unsecured debt instruments | |||
Total liabilities | 3,705,092 | 3,705,092 | 3,463,639 |
Redeemable noncontrolling interests in the Operating Partnership (d) | 967,797 | 967,797 | 909,482 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Interest rate contracts | Fair Value, Measurements, Recurring | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Derivatives - Interest rate contracts | 4,377 | 4,377 | 4,360 |
Derivatives - Interest rate contracts (b) | 413 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Commercial bank | Fair Value, Measurements, Recurring | |||
Unsecured debt instruments | |||
Unsecured debt instruments (c) | 40,058 | 40,058 | 21,350 |
Borrowings outstanding at end of period | 240,000 | 240,000 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Senior Unsecured Notes [Member] | Fair Value, Measurements, Recurring | |||
Unsecured debt instruments | |||
Unsecured debt instruments (c) | 2,611,612 | 2,611,612 | 2,304,492 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Total assets | 4,377 | 4,377 | 4,360 |
Unsecured debt instruments | |||
Total liabilities | 413 | ||
Redeemable noncontrolling interests in the Operating Partnership (d) | 967,797 | 967,797 | 909,482 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member] | Interest rate contracts | Fair Value, Measurements, Recurring | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Derivatives - Interest rate contracts | 4,377 | 4,377 | 4,360 |
Derivatives - Interest rate contracts (b) | 413 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notes receivable, net | 17,286 | 17,286 | 19,645 |
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Total assets | 17,286 | 17,286 | 19,645 |
Unsecured debt instruments | |||
Total liabilities | 3,705,092 | 3,705,092 | 3,463,226 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 3 [Member] | Commercial bank | Fair Value, Measurements, Recurring | |||
Unsecured debt instruments | |||
Unsecured debt instruments (c) | 40,058 | 40,058 | 21,350 |
Borrowings outstanding at end of period | 240,000 | 240,000 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 3 [Member] | Senior Unsecured Notes [Member] | Fair Value, Measurements, Recurring | |||
Unsecured debt instruments | |||
Unsecured debt instruments (c) | 2,611,612 | 2,611,612 | 2,304,492 |
Variable Rate Debt | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Tax Exempt Notes Payable [Member] | Fair Value, Measurements, Recurring | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Secured debt including debt on real estate held for sale | 94,700 | 94,700 | |
Variable Rate Debt | Estimate of Fair Value, Fair Value Disclosure [Member] | Tax Exempt Notes Payable [Member] | Fair Value, Measurements, Recurring | |||
Secured debt instruments - variable rate | |||
Secured debt instruments - variable rate | 94,700 | 94,700 | |
Variable Rate Debt | Estimate of Fair Value, Fair Value Disclosure [Member] | Level 3 [Member] | Tax Exempt Notes Payable [Member] | Fair Value, Measurements, Recurring | |||
Secured debt instruments - variable rate | |||
Secured debt instruments - variable rate | 94,700 | 94,700 | |
Variable Rate Debt | Tax Exempt Notes Payable [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Secured debt including debt on real estate held for sale | 94,700 | 94,700 | 94,700 |
Variable Rate Debt | Tax Exempt Notes Payable [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Tax Exempt Notes Payable [Member] | Fair Value, Measurements, Recurring | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Secured debt including debt on real estate held for sale | 94,700 | ||
Variable Rate Debt | Tax Exempt Notes Payable [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Tax Exempt Notes Payable [Member] | Fair Value, Measurements, Recurring | |||
Secured debt instruments - variable rate | |||
Secured debt instruments - variable rate | 94,700 | ||
Variable Rate Debt | Tax Exempt Notes Payable [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Level 3 [Member] | Tax Exempt Notes Payable [Member] | Fair Value, Measurements, Recurring | |||
Secured debt instruments - variable rate | |||
Secured debt instruments - variable rate | 94,700 | ||
Variable Rate Debt | Line Of Credit [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Secured debt including debt on real estate held for sale | 29,034 | 29,034 | 280,946 |
Variable Rate Debt | Line Of Credit [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Line Of Credit [Member] | Fair Value, Measurements, Recurring | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Secured debt including debt on real estate held for sale | 29,034 | 29,034 | 280,946 |
Variable Rate Debt | Line Of Credit [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Line Of Credit [Member] | Fair Value, Measurements, Recurring | |||
Secured debt instruments - variable rate | |||
Secured debt instruments - variable rate | 29,034 | 29,034 | 280,946 |
Variable Rate Debt | Line Of Credit [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Level 3 [Member] | Line Of Credit [Member] | Fair Value, Measurements, Recurring | |||
Secured debt instruments - variable rate | |||
Secured debt instruments - variable rate | 29,034 | 29,034 | 280,946 |
Fixed Rate Debt | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Secured debt including debt on real estate held for sale | 683,217 | 683,217 | 756,151 |
Fixed Rate Debt | Line Of Credit [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Secured debt including debt on real estate held for sale | 285,836 | 285,836 | 355,836 |
Fixed Rate Debt | Line Of Credit [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Line Of Credit [Member] | Fair Value, Measurements, Recurring | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Secured debt including debt on real estate held for sale | 285,836 | 285,836 | 355,836 |
Fixed Rate Debt | Line Of Credit [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Line Of Credit [Member] | Fair Value, Measurements, Recurring | |||
Secured debt instruments - fixed rate | |||
Secured debt instruments - fixed rate | 292,860 | 292,860 | 365,693 |
Fixed Rate Debt | Line Of Credit [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Level 3 [Member] | Line Of Credit [Member] | Fair Value, Measurements, Recurring | |||
Secured debt instruments - fixed rate | |||
Secured debt instruments - fixed rate | 292,860 | 292,860 | 365,693 |
Fixed Rate Debt | Mortgages Notes Payable [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Secured debt including debt on real estate held for sale | 399,315 | 399,315 | |
Fixed Rate Debt | Mortgages Notes Payable [Member] | Mortgages Notes Payable [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Secured debt including debt on real estate held for sale | 402,996 | ||
Fixed Rate Debt | Mortgages Notes Payable [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Mortgages Notes Payable [Member] | Fair Value, Measurements, Recurring | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Secured debt including debt on real estate held for sale | 399,315 | 399,315 | 402,996 |
Fixed Rate Debt | Mortgages Notes Payable [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Mortgages Notes Payable [Member] | Fair Value, Measurements, Recurring | |||
Secured debt instruments - fixed rate | |||
Secured debt instruments - fixed rate | 396,828 | 396,828 | 396,045 |
Fixed Rate Debt | Mortgages Notes Payable [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Level 3 [Member] | Mortgages Notes Payable [Member] | Fair Value, Measurements, Recurring | |||
Secured debt instruments - fixed rate | |||
Secured debt instruments - fixed rate | $ 396,828 | $ 396,828 | $ 396,045 |
Derivatives and Hedging Activ52
Derivatives and Hedging Activity - Interest Rate Derivatives (Details) $ in Thousands | Jun. 30, 2017USD ($)instrument |
Designated as Hedging Instrument | Interest rate swaps [Member] | |
Derivative [Line Items] | |
Number of Interest Rate Derivatives Held | instrument | 4 |
Notional | $ | $ 315,000 |
Designated as Hedging Instrument | Interest rate caps [Member] | |
Derivative [Line Items] | |
Number of Interest Rate Derivatives Held | instrument | 1 |
Notional | $ | $ 65,197 |
Not Designated as Hedging Instrument | Interest rate caps [Member] | |
Derivative [Line Items] | |
Number of Interest Rate Derivatives Held | instrument | 3 |
Notional | $ | $ 271,076 |
Derivatives and Hedging Activ53
Derivatives and Hedging Activity - Undesignated Interest Rate Derivatives (Details) - Interest rate contracts - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Other assets | Designated as Hedging Instrument | ||
Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheet | ||
Derivative Asset Designated as Hedging Instrument, Fair Value | $ 4,377 | $ 4,359 |
Other assets | Not Designated as Hedging Instrument | ||
Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheet | ||
Derivative Asset Not Designated as Hedging Instrument, Fair Value | 1 | |
Other liabilities | Designated as Hedging Instrument | ||
Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheet | ||
Derivative Liability Designated as Hedging Instrument, Fair Value | $ 413 |
Derivatives and Hedging Activ54
Derivatives and Hedging Activity - Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Effect of derivative instruments on the Consolidated Statements of Operations | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ (100) | $ 0 | $ (100) | $ 0 |
Unrealized holding gain/(loss) | (507) | (1,963) | 126 | (2,774) |
Amount of Gain or (Loss) Recognized in Income on Derivative | (3) | (1) | (3) | |
Interest rate contracts | Interest expense | Cash Flow Hedging | ||||
Effect of derivative instruments on the Consolidated Statements of Operations | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (308) | (943) | (1,073) | (1,878) |
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (82) | (136) | ||
Interest rate contracts | Other income/(expense) | ||||
Effect of derivative instruments on the Consolidated Statements of Operations | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 100 | $ 100 | $ 100 | $ 100 |
Derivatives and Hedging Activ55
Derivatives and Hedging Activity - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Offsetting Derivative Assets [Abstract] | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheets (a) | $ 4,377 | $ 4,360 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (221) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 | 0 |
Net Amount | 4,377 | 4,139 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 413 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets (b) | 413 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (221) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 | 0 |
Net Amount | 192 | |
Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Interest rate contracts | ||
Offsetting Derivative Assets [Abstract] | ||
Derivative Asset Designated as Hedging Instrument, Fair Value | $ 4,377 | $ 4,360 |
Derivatives and Hedging Activ56
Derivatives and Hedging Activity - Effectiveness (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | |||||
Derivative, Collateral, Obligation to Return Cash | $ 0 | $ 0 | $ 0 | ||
Derivatives and Hedging Activity (Textual) [Abstract] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 100 | $ 0 | 100 | $ 0 | |
Estimated additional accumulated other comprehensive Income/(Loss) transferred to interest expense | 100 | 100 | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | $ (3) | (1) | $ (3) | ||
Payment required to pay for contract termination | 4,400 | 4,400 | |||
Interest rate swaps [Member] | Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional | $ 315,000 | $ 315,000 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Based Compensation (Textual) [Abstract] | ||||
Stock based compensation expense | $ 3.4 | $ 3.2 | $ 6.8 | $ 7.1 |
Commitments and Contingencies58
Commitments and Contingencies (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017USD ($)community | Jun. 30, 2016USD ($) | |
Real Estate Properties [Line Items] | ||
Development costs and capital expenditures incurred but not yet paid | $ 49,295 | $ 42,940 |
Number of communities owned (in communities) | community | 128 | |
Percentage Of Cost Incurred To Date | 100.00% | |
Costs Incurred to Date | $ 1,071,894 | |
Expected Costs to Complete | 344,603 | |
Wholly owned — under development [Member] | ||
Real Estate Properties [Line Items] | ||
Development costs and capital expenditures incurred but not yet paid | $ 36,700 | |
Number of communities owned (in communities) | community | 2 | |
Costs Incurred to Date | $ 465,729 | |
Expected Costs to Complete | $ 242,771 | |
Average Ownership Stake | 100.00% | |
Wholly owned — redevelopment [Member] | ||
Real Estate Properties [Line Items] | ||
Development costs and capital expenditures incurred but not yet paid | $ 2,200 | |
Number of communities owned (in communities) | community | 1 | |
Costs Incurred to Date | $ 6,171 | |
Expected Costs to Complete | $ 3,329 | |
Average Ownership Stake | 100.00% | |
Unconsolidated joint ventures [Member] | ||
Real Estate Properties [Line Items] | ||
Number of communities owned (in communities) | community | 5 | |
Costs Incurred to Date | $ 430,918 | |
Expected Costs to Complete | $ 52,257 | |
Average Ownership Stake | 50.00% | |
Participating Loan Investment Steele Creek Denver Colorado [Member] | ||
Real Estate Properties [Line Items] | ||
Number of communities owned (in communities) | community | 1 | |
Costs Incurred to Date | $ 93,984 | |
Preferred Equity Investment West Coast Development JV [Member] | ||
Real Estate Properties [Line Items] | ||
Number of communities owned (in communities) | community | 4 | |
Costs Incurred to Date | $ 64,532 | |
Expected Costs to Complete | $ 18,247 | |
Average Ownership Stake | 48.00% | |
Other investments | ||
Real Estate Properties [Line Items] | ||
Number of communities owned (in communities) | community | 1 | |
Costs Incurred to Date | $ 10,560 | |
Expected Costs to Complete | $ 27,999 |
Reportable Segments (Details)
Reportable Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segmentitem | Jun. 30, 2016USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Same Store Communities | item | 36,540 | 35,689 | ||||
Reconciling items: | ||||||
Joint venture management and other fees | $ 3,321 | $ 2,618 | $ 5,891 | $ 5,476 | ||
Property management | (6,728) | (6,494) | (13,363) | (12,873) | ||
Other operating expenses | (2,369) | (1,892) | (4,060) | (3,644) | ||
Segment Reporting Reconciling Items Cost of Services Depreciation and Amortization | (108,450) | (105,937) | (213,482) | (211,276) | ||
General and administrative | (11,434) | (10,835) | (24,509) | (24,679) | ||
Casualty-related (charges)/recoveries, net | (1,191) | (1,629) | (1,693) | (1,629) | ||
Other depreciation and amortization | (1,567) | (1,486) | (3,175) | (3,039) | ||
Income/(loss) from unconsolidated entities | (1,426) | 325 | 9,772 | 1,004 | ||
Interest expense | (33,866) | (30,678) | (64,405) | (61,782) | ||
Interest and other income/(expense), net | 515 | 540 | 942 | 971 | ||
Tax (provision)/benefit, net | (366) | 402 | (698) | 805 | ||
Gain Loss on the Sale of Real Estate, Including Discontinued Operations | 7,315 | 2,132 | 10,385 | |||
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | (854) | (1,610) | (3,192) | (2,515) | ||
Net (income)/loss attributable to noncontrolling interests | (51) | (8) | (142) | (314) | ||
Net income/(loss) attributable to UDR, Inc. | 10,157 | 17,946 | 36,124 | 28,339 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 9,888,920 | 9,888,920 | $ 9,615,753 | |||
Accumulated depreciation | (3,132,031) | (3,132,031) | (2,923,625) | |||
Total real estate owned, net of accumulated depreciation | 6,756,889 | 6,756,889 | 6,692,128 | |||
Reconciling items: | ||||||
Cash and cash equivalents | 1,411 | 5,167 | 1,411 | 5,167 | 2,112 | $ 6,742 |
Restricted cash | 19,602 | 19,602 | 19,994 | |||
Notes receivable, net | 17,290 | 17,290 | 19,790 | |||
Investment in and advances to unconsolidated joint ventures, net | 843,167 | 843,167 | 827,025 | |||
Other assets | 129,575 | 129,575 | 118,535 | |||
Total consolidated assets | 7,767,934 | $ 7,767,934 | 7,679,584 | |||
Reportable Segment (Textual) [Abstract] | ||||||
Number of reportable segments | segment | 2 | |||||
Condition for Community considered to have stabilized occupancy | 90% | |||||
Same Communities | ||||||
Reportable Segment (Textual) [Abstract] | ||||||
Capital expenditures and development | 23,600 | 23,600 | $ 38,900 | 36,500 | ||
Same Store Communities Western Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 83,222 | 79,566 | 165,442 | 157,973 | ||
Reportable apartment home segment NOI | 62,658 | 58,819 | 124,552 | 117,963 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 2,954,555 | 2,954,555 | 2,938,073 | |||
Same Store Communities Mid-Atlantic Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 57,199 | 55,586 | 104,620 | 101,288 | ||
Reportable apartment home segment NOI | 40,106 | 39,039 | 72,928 | 69,450 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 2,434,358 | 2,434,358 | 2,427,948 | |||
Same Store Communities Northeast Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 37,732 | 36,749 | 75,653 | 73,209 | ||
Reportable apartment home segment NOI | 27,151 | 26,983 | 54,052 | 53,343 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 1,860,934 | 1,860,934 | 1,857,193 | |||
Same Store Communities Southeastern Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 29,149 | 27,702 | 57,806 | 54,839 | ||
Reportable apartment home segment NOI | 20,059 | 19,081 | 39,720 | 37,877 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 752,902 | 752,902 | 746,762 | |||
Same Store Communities Southwestern Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 10,685 | 10,237 | 21,365 | 20,363 | ||
Reportable apartment home segment NOI | 6,613 | 6,344 | 13,293 | 12,676 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 286,145 | 286,145 | 283,260 | |||
Non-Mature communities/Other [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 26,671 | 26,328 | 61,043 | 60,453 | ||
Reportable apartment home segment NOI | 18,036 | 17,049 | 41,561 | 40,140 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 1,600,026 | 1,600,026 | 1,362,517 | |||
Reportable Segment (Textual) [Abstract] | ||||||
Capital expenditures and development | 1,400 | 2,300 | 2,200 | 5,000 | ||
Total Communities [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 244,658 | 236,168 | 485,929 | 468,125 | ||
Reportable apartment home segment NOI | 174,623 | 167,315 | $ 346,106 | $ 331,449 | ||
United Dominion Reality, L.P. | ||||||
Segment Reporting Information [Line Items] | ||||||
Same Store Communities | item | 15,058 | 15,058 | ||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 104,088 | 100,892 | $ 206,693 | $ 199,678 | ||
Reportable apartment home segment NOI | (77,014) | (74,658) | (152,077) | (147,210) | ||
Reconciling items: | ||||||
Property management | (2,862) | (2,775) | (5,684) | (5,492) | ||
Other operating expenses | (2,128) | (1,519) | (3,676) | (3,019) | ||
Segment Reporting Reconciling Items Cost of Services Depreciation and Amortization | (39,231) | (37,053) | (76,110) | (73,844) | ||
General and administrative | (4,408) | (3,844) | (9,627) | (9,265) | ||
Casualty-related (charges)/recoveries, net | (1,191) | (465) | (1,744) | (465) | ||
Income/(loss) from unconsolidated entities | (4,350) | (10,030) | (9,774) | (23,417) | ||
Interest expense | (11,652) | (7,578) | (20,263) | (15,183) | ||
Net (income)/loss attributable to noncontrolling interests | (343) | (350) | (693) | (694) | ||
Net income/(loss) attributable to UDR, Inc. | 10,849 | 11,044 | 24,506 | 15,831 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 3,694,723 | 3,694,723 | 3,674,704 | |||
Accumulated depreciation | (1,482,993) | (1,482,993) | (1,408,815) | |||
Total real estate owned, net of accumulated depreciation | 2,211,730 | 2,211,730 | 2,265,889 | |||
Reconciling items: | ||||||
Cash and cash equivalents | 85 | 1,535 | 85 | 1,535 | 756 | $ 3,103 |
Restricted cash | 12,210 | 12,210 | 11,694 | |||
Investment in and advances to unconsolidated joint ventures, net | 94,741 | 94,741 | 112,867 | |||
Other assets | 30,523 | 30,523 | 24,329 | |||
Total consolidated assets | 2,349,289 | $ 2,349,289 | 2,415,535 | |||
Reportable Segment (Textual) [Abstract] | ||||||
Number of reportable segments | segment | 2 | |||||
United Dominion Reality, L.P. | Same-Store [Member] | ||||||
Reportable Segment (Textual) [Abstract] | ||||||
Capital expenditures and development | 11,600 | 11,700 | $ 19,600 | 17,000 | ||
United Dominion Reality, L.P. | Same Store Communities Western Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 51,267 | 48,604 | 101,748 | 96,239 | ||
Reportable apartment home segment NOI | (38,961) | (36,787) | (77,406) | (72,946) | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 1,608,744 | 1,608,744 | 1,596,815 | |||
United Dominion Reality, L.P. | Same Store Communities Mid-Atlantic Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 14,798 | 14,407 | 29,546 | 28,574 | ||
Reportable apartment home segment NOI | (10,134) | (9,887) | (20,229) | (19,249) | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 652,533 | 652,533 | 655,693 | |||
United Dominion Reality, L.P. | Same Store Communities Northeast Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 13,545 | 13,203 | 27,104 | 26,209 | ||
Reportable apartment home segment NOI | (10,473) | (10,407) | (20,604) | (20,463) | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 676,258 | 676,258 | 674,928 | |||
United Dominion Reality, L.P. | Same Store Communities Southeastern Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 12,452 | 11,918 | 24,723 | 23,615 | ||
Reportable apartment home segment NOI | (8,544) | (8,165) | (16,827) | (16,208) | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 329,987 | 329,987 | 328,729 | |||
United Dominion Reality, L.P. | Non-Mature communities/Other [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 12,026 | 12,760 | 23,572 | 25,041 | ||
Reportable apartment home segment NOI | (8,902) | (9,412) | (17,011) | (18,344) | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 427,201 | 427,201 | $ 418,539 | |||
Reportable Segment (Textual) [Abstract] | ||||||
Capital expenditures and development | $ 600 | $ 400 | $ 1,000 | $ 700 | ||
Taxable REIT Subsidiaries | United Dominion Reality, L.P. | ||||||
Reportable Segment (Textual) [Abstract] | ||||||
Related Party Transaction, Management Fee Percentage | 2.75% |
Consolidated Balance Sheets (UN
Consolidated Balance Sheets (UNITED DOMINION REALTY, L.P) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Real estate owned: | ||
Real estate held for investment | $ 9,423,191 | $ 9,271,847 |
Less: accumulated depreciation | (3,131,603) | (2,923,072) |
Total real estate owned, net of accumulated depreciation | 6,756,889 | 6,692,128 |
Cash and cash equivalents | 1,411 | 2,112 |
Restricted cash | 19,602 | 19,994 |
Investment in unconsolidated entities | 843,167 | 827,025 |
Other assets | 129,575 | 118,535 |
Total assets | 7,767,934 | 7,679,584 |
LIABILITIES AND CAPITAL | ||
Secured debt, net | 806,647 | 1,130,858 |
Real estate taxes payable | 19,595 | 17,388 |
Accrued interest payable | 28,482 | 29,257 |
Security deposits and prepaid rent | 35,336 | 34,238 |
Distributions payable | 91,447 | 86,936 |
Accounts payable, accrued expenses, and other liabilities | 92,161 | 103,835 |
Total liabilities | 3,901,669 | 3,673,132 |
Commitments and contingencies (Note 10) | ||
Partners' Capital: | ||
Accumulated other comprehensive income/(loss), net | (4,395) | (5,609) |
Total liabilities and equity | 7,767,934 | 7,679,584 |
United Dominion Reality, L.P. | ||
Real estate owned: | ||
Real estate held for investment | 3,694,723 | 3,674,704 |
Less: accumulated depreciation | (1,482,993) | (1,408,815) |
Total real estate owned, net of accumulated depreciation | 2,211,730 | 2,265,889 |
Cash and cash equivalents | 85 | 756 |
Restricted cash | 12,210 | 11,694 |
Investment in unconsolidated entities | 94,741 | 112,867 |
Other assets | 30,523 | 24,329 |
Total assets | 2,349,289 | 2,415,535 |
LIABILITIES AND CAPITAL | ||
Secured debt, net | 159,764 | 433,974 |
Notes payable due to General Partner | 273,334 | 273,334 |
Real estate taxes payable | 4,837 | 2,104 |
Accrued interest payable | 605 | 1,410 |
Security deposits and prepaid rent | 15,401 | 14,593 |
Distributions payable | 57,028 | 54,192 |
Accounts payable, accrued expenses, and other liabilities | 12,279 | 17,429 |
Total liabilities | 523,248 | 797,036 |
Commitments and contingencies (Note 10) | ||
Partners' Capital: | ||
General partner: 110,883 OP Units outstanding at June 30, 2017 and December 31, 2016 | 973 | 1,026 |
Limited partners: 183,240,041 and 183,167,815 OP Units outstanding at June 30, 2017 and December 31, 2016, respectively | 1,491,862 | 1,577,289 |
Accumulated other comprehensive income/(loss), net | (113) | |
Total partners' capital | 1,492,835 | 1,578,202 |
Advances (to)/from General Partner | 311,881 | 19,659 |
Noncontrolling interests | 21,325 | 20,638 |
Total capital | 1,826,041 | 1,618,499 |
Total liabilities and equity | $ 2,349,289 | $ 2,415,535 |
Consolidated Balance Sheets (61
Consolidated Balance Sheets (UNITED DOMINION REALTY, L.P) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Real estate held for disposition accumulated depreciation | $ 0 | $ 553 |
Partners' Capital: | ||
OP units outstanding related to limited partner | 183,350,924 | 183,278,698 |
United Dominion Reality, L.P. | ||
Partners' Capital: | ||
OP units outstanding related to general partner | 110,883 | 110,883 |
OP units outstanding related to limited partner | 183,240,041 | 183,167,815 |
Consolidated Statements of Op62
Consolidated Statements of Operations (Unaudited) (UNITED DOMINION REALTY, L.P) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
REVENUES | ||||
Rental income | $ 244,658 | $ 236,168 | $ 485,929 | $ 468,125 |
OPERATING EXPENSES: | ||||
Property operating and maintenance | 40,612 | 38,574 | 80,212 | 78,020 |
Real estate taxes and insurance | 29,423 | 30,279 | 59,611 | 58,656 |
Property management | 6,728 | 6,494 | 13,363 | 12,873 |
Other operating expenses | 2,369 | 1,892 | 4,060 | 3,644 |
Real estate depreciation and amortization | 108,450 | 105,937 | 213,482 | 211,276 |
General and administrative | 11,434 | 10,835 | 24,509 | 24,679 |
Casualty-related (recoveries)/charges, net | 1,191 | 1,629 | 1,693 | 1,629 |
Total operating expenses | 201,774 | 197,126 | 400,105 | 393,816 |
Operating income | 46,205 | 41,660 | 91,715 | 79,785 |
Income/(loss) from unconsolidated entities | (1,426) | 325 | 9,772 | 1,004 |
Interest expense | (33,866) | (30,678) | (64,405) | (61,782) |
Net income/(loss) | 11,062 | 19,564 | 39,458 | 31,168 |
Net income/(loss) attributable to OP unitholders | 10,157 | 17,946 | 36,124 | 28,339 |
United Dominion Reality, L.P. | ||||
REVENUES | ||||
Rental income | 104,088 | 100,892 | 206,693 | 199,678 |
OPERATING EXPENSES: | ||||
Property operating and maintenance | 16,325 | 15,838 | 32,843 | 31,898 |
Real estate taxes and insurance | 10,749 | 10,396 | 21,773 | 20,570 |
Property management | 2,862 | 2,775 | 5,684 | 5,492 |
Other operating expenses | 2,128 | 1,519 | 3,676 | 3,019 |
Real estate depreciation and amortization | 39,231 | 37,053 | 76,110 | 73,844 |
General and administrative | 4,408 | 3,844 | 9,627 | 9,265 |
Casualty-related (recoveries)/charges, net | 1,191 | 465 | 1,744 | 465 |
Total operating expenses | 76,894 | 71,890 | 151,457 | 144,553 |
Operating income | 27,194 | 29,002 | 55,236 | 55,125 |
Income/(loss) from unconsolidated entities | (4,350) | (10,030) | (9,774) | (23,417) |
Interest expense | (8,599) | (4,525) | (14,157) | (9,077) |
Interest expense on note payable due to General Partner | (3,053) | (3,053) | (6,106) | (6,106) |
Net income/(loss) | 11,192 | 11,394 | 25,199 | 16,525 |
Net (income)/loss attributable to noncontrolling interest | (343) | (350) | (693) | (694) |
Net income/(loss) attributable to OP unitholders | $ 10,849 | $ 11,044 | $ 24,506 | $ 15,831 |
Income/(loss) per OP unit- basic and diluted: | ||||
Net income/(loss) per weighted average OP unit - basic and diluted | $ 0.06 | $ 0.06 | $ 0.13 | $ 0.09 |
Weighted average OP units outstanding - basic and diluted | 183,351 | 183,279 | 183,338 | 183,279 |
Consolidated Statements of Co63
Consolidated Statements of Comprehensive Income / (Loss) (UNITED DOMINION REALTY, L.P.) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income/(loss) | $ 11,062 | $ 19,564 | $ 39,458 | $ 31,168 |
Other comprehensive income/(loss), including portion attributable to noncontrolling interests: | ||||
Unrealized holding gain/(loss) | (507) | (1,963) | 126 | (2,774) |
Other comprehensive income/(loss), including portion attributable to noncontrolling interests | (117) | (1,020) | 1,335 | (896) |
Comprehensive income/(loss) | 10,945 | 18,544 | 40,793 | 30,272 |
Comprehensive (income)/loss attributable to noncontrolling interests | (897) | (1,537) | (3,455) | (2,229) |
Comprehensive income/(loss) attributable to OP unitholders | 10,048 | 17,007 | 37,338 | 28,043 |
United Dominion Reality, L.P. | ||||
Net income/(loss) | 11,192 | 11,394 | 25,199 | 16,525 |
Other comprehensive income/(loss), including portion attributable to noncontrolling interests: | ||||
Unrealized holding gain/(loss) | (1) | (3) | ||
(Gain)/loss reclassified into earnings from other comprehensive income/(loss) | 52 | 2 | 106 | 3 |
Other comprehensive income/(loss), including portion attributable to noncontrolling interests | 52 | 1 | 106 | |
Comprehensive income/(loss) | 11,244 | 11,395 | 25,305 | 16,525 |
Comprehensive (income)/loss attributable to noncontrolling interests | (343) | (350) | (693) | (694) |
Comprehensive income/(loss) attributable to OP unitholders | $ 10,901 | $ 11,045 | $ 24,612 | $ 15,831 |
Consolidated Statements of Ch64
Consolidated Statements of Changes in Capital (UNITED DOMINION REALTY, L.P) (Unaudited) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Long Term Incentive Plan Unit grants | $ 1,727 |
United Dominion Reality, L.P. | |
Balance, December 31, 2016 | 1,618,499 |
Net income/(loss) | 25,199 |
Distributions | (114,045) |
Long Term Incentive Plan Unit grants | 4,059 |
Unrealized gain/(loss) on derivative financial investments | 107 |
Net change in advances (to)/from General Partner | 292,222 |
Balance, June 30, 2017 | 1,826,041 |
Advances to/(from) General Partner | United Dominion Reality, L.P. | |
Balance, December 31, 2016 | 19,659 |
Net change in advances (to)/from General Partner | 292,222 |
Balance, June 30, 2017 | 311,881 |
Accumulated Other Comprehensive Income/(Loss), net | United Dominion Reality, L.P. | |
Balance, December 31, 2016 | (113) |
Unrealized gain/(loss) on derivative financial investments | 113 |
Total Partner's Capital | United Dominion Reality, L.P. | |
Balance, December 31, 2016 | 1,578,202 |
Net income/(loss) | 24,506 |
Distributions | (114,045) |
Long Term Incentive Plan Unit grants | 4,059 |
Unrealized gain/(loss) on derivative financial investments | 113 |
Balance, June 30, 2017 | 1,492,835 |
Noncontrolling Interest | United Dominion Reality, L.P. | |
Balance, December 31, 2016 | 20,638 |
Net income/(loss) | 693 |
Unrealized gain/(loss) on derivative financial investments | (6) |
Balance, June 30, 2017 | 21,325 |
Class A Limited Partner | United Dominion Reality, L.P. | |
Balance, December 31, 2016 | 63,901 |
Net income/(loss) | 234 |
Distributions | (1,164) |
Adjustment to reflect limited partners' capital at redemption value | 5,292 |
Balance, June 30, 2017 | 68,263 |
Limited Partners and LTIP Units | United Dominion Reality, L.P. | |
Balance, December 31, 2016 | 269,928 |
Net income/(loss) | 985 |
Distributions | (4,853) |
OP Unit redemptions for common shares of UDR | (132) |
Adjustment to reflect limited partners' capital at redemption value | 17,420 |
Long Term Incentive Plan Unit grants | 4,059 |
Balance, June 30, 2017 | 287,407 |
Limited Partner | United Dominion Reality, L.P. | |
Balance, December 31, 2016 | 1,243,460 |
Net income/(loss) | 23,272 |
Distributions | (107,960) |
OP Unit redemptions for common shares of UDR | 132 |
Adjustment to reflect limited partners' capital at redemption value | (22,712) |
Balance, June 30, 2017 | 1,136,192 |
General Partner | United Dominion Reality, L.P. | |
Balance, December 31, 2016 | 1,026 |
Net income/(loss) | 15 |
Distributions | (68) |
Balance, June 30, 2017 | 973 |
Noncontrolling Interest | |
Long Term Incentive Plan Unit grants | $ 1,727 |
Consolidated Statements of Ca65
Consolidated Statements of Cash Flows (UNITED DOMINION REALTY, L.P) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating Activities | ||||
Net income/(loss) | $ 11,062 | $ 19,564 | $ 39,458 | $ 31,168 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||
Depreciation and amortization | 108,450 | 105,937 | 213,482 | 211,276 |
(Income)/loss from unconsolidated entities | 1,426 | (325) | (9,772) | (1,004) |
Other | 10,929 | 5,562 | ||
Changes in operating assets and liabilities: | ||||
(Increase)/decrease in operating assets | (9,302) | (8,551) | ||
Increase/(decrease) in operating liabilities | (16,040) | (12,858) | ||
Net cash provided by/(used in) operating activities | 239,998 | 226,470 | ||
Investing Activities | ||||
Capital expenditures and other major improvements — real estate assets, net of escrow reimbursement | (51,298) | (49,112) | ||
Distributions received from unconsolidated entities | 26,210 | 13,663 | ||
Net cash provided by/(used in) investing activities | (282,704) | (122,455) | ||
Financing Activities | ||||
Payments on secured debt | (324,118) | (145,499) | ||
Other | (12,794) | (4,526) | ||
Net cash provided by/(used in) financing activities | 42,005 | (105,590) | ||
Net increase/(decrease) in cash and cash equivalents | (701) | (1,575) | ||
Cash and cash equivalents, beginning of period | 2,112 | 6,742 | ||
Cash and cash equivalents, end of period | 1,411 | 5,167 | 1,411 | 5,167 |
Supplemental Information: | ||||
Interest paid during the period, net of amounts capitalized | 66,047 | 64,793 | ||
Development costs and capital expenditures incurred but not yet paid | 49,295 | 42,940 | ||
Long Term Incentive Plan Unit grants | 1,727 | |||
Dividends declared but not yet paid | 91,447 | 86,936 | 91,447 | 86,936 |
United Dominion Reality, L.P. | ||||
Operating Activities | ||||
Net income/(loss) | 11,192 | 11,394 | 25,199 | 16,525 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||
Depreciation and amortization | 39,231 | 37,053 | 76,110 | 73,844 |
(Income)/loss from unconsolidated entities | 4,350 | 10,030 | 9,774 | 23,417 |
Other | 7,221 | 1,176 | ||
Changes in operating assets and liabilities: | ||||
(Increase)/decrease in operating assets | (1,426) | (1,521) | ||
Increase/(decrease) in operating liabilities | (3,315) | 2,509 | ||
Net cash provided by/(used in) operating activities | 113,563 | 115,950 | ||
Investing Activities | ||||
Capital expenditures and other major improvements — real estate assets, net of escrow reimbursement | (28,300) | (30,117) | ||
Distributions received from unconsolidated entities | 8,352 | 7,946 | ||
Net cash provided by/(used in) investing activities | (19,948) | (22,171) | ||
Financing Activities | ||||
Advances (to)/from General Partner, net | 190,646 | (59,922) | ||
Payments on secured debt | (275,345) | (30,322) | ||
Distributions paid to partnership unitholders | (5,574) | (5,103) | ||
Other | (4,013) | |||
Net cash provided by/(used in) financing activities | (94,286) | (95,347) | ||
Net increase/(decrease) in cash and cash equivalents | (671) | (1,568) | ||
Cash and cash equivalents, beginning of period | 756 | 3,103 | ||
Cash and cash equivalents, end of period | 85 | 1,535 | 85 | 1,535 |
Supplemental Information: | ||||
Interest paid during the period, net of amounts capitalized | 17,629 | 11,296 | ||
Development costs and capital expenditures incurred but not yet paid | 5,478 | 7,020 | ||
Long Term Incentive Plan Unit grants | 4,059 | 1,971 | ||
Dividends declared but not yet paid | $ 57,028 | $ 54,173 | $ 57,028 | $ 54,173 |
Consolidation and Basis of Pres
Consolidation and Basis of Presentation (UNITED DOMINION REALTY, L.P.) | 6 Months Ended |
Jun. 30, 2017 | |
Entity Information [Line Items] | |
CONSOLIDATION AND BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION Basis of Presentation UDR, Inc., collectively with our consolidated subsidiaries (“UDR,” the “Company,” “we,” “our,” or “us”), is a self-administered real estate investment trust, or REIT, that owns, operates, acquires, renovates, develops, redevelops, and manages apartment communities. The accompanying consolidated financial statements include the accounts of UDR and its subsidiaries, including United Dominion Realty, L.P. (the “Operating Partnership” or the “OP”) and UDR Lighthouse DownREIT L.P. (the “DownREIT Partnership”). As of June 30, 2017, there were 183,350,924 units in the Operating Partnership ("OP Units") outstanding, of which 174,233,691 OP Units, or 95.0%, were owned by UDR and 9,117,233 OP Units, or 5.0%, were owned by outside limited partners. As of June 30, 2017, there were 32,367,380 units in the DownREIT Partnership (“DownREIT Units”) outstanding, of which 16,650,211, or 51.4%, were owned by UDR (including 13,470,651 DownREIT Units, or 41.6%, that were held by the Operating Partnership) and 15,717,169, or 48.6%, were owned by outside limited partners. The consolidated financial statements of UDR include the noncontrolling interests of the unitholders in the Operating Partnership and DownREIT Partnership. The accompanying interim unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments and eliminations necessary for the fair presentation of our financial position as of June 30, 2017, and results of operations for the three and six months ended June 30, 2017 and 2016 have been included. Such adjustments are normal and recurring in nature. The interim results presented are not necessarily indicative of results that can be expected for a full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2016 appearing in UDR’s Annual Report on Form 10‑K, filed with the Securities and Exchange Commission on February 21, 2017. The accompanying interim unaudited consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the interim unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company evaluated subsequent events through the date its financial statements were issued. No significant recognized or non-recognized subsequent events were noted. |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
CONSOLIDATION AND BASIS OF PRESENTATION | 1. CONSOLIDATION AND BASIS OF PRESENTATION Basis of Presentation United Dominion Realty, L.P. (“UDR, L.P.,” the “Operating Partnership,” “we” or “our”) is a Delaware limited partnership, that owns, acquires, renovates, redevelops, manages, and disposes of multifamily apartment communities generally located in high barrier to entry markets located in the United States. The high barrier to entry markets are characterized by limited land for new construction, difficult and lengthy entitlement process, expensive single-family home prices and significant employment growth potential. UDR, L.P. is a subsidiary of UDR, Inc. (“UDR” or the “General Partner”), a self-administered real estate investment trust, or REIT, through which UDR conducts a significant portion of its business. During the three and six months ended June 30, 2017 and 2016, rental revenues of the Operating Partnership represented 43% of the General Partner’s consolidated rental revenues. As of June 30, 2017, the Operating Partnership’s apartment portfolio consisted of 54 communities located in 14 markets consisting of 16,698 apartment homes. Interests in UDR, L.P. are represented by operating partnership units (“OP Units”). The Operating Partnership’s net income is allocated to the partners, which is initially based on their respective distributions made during the year and secondly, their percentage interests. Distributions are made in accordance with the terms of the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. (the “Operating Partnership Agreement”), on a per unit basis that is generally equal to the dividend per share on UDR’s common stock, which is publicly traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “UDR.” As of June 30, 2017, there were 183,350,924 OP Units outstanding, of which 174,233,691, or 95.0%, were owned by UDR and affiliated entities and 9,117,233, or 5.0%, were owned by non-affiliated limited partners. See Note 9, Capital Structure . The accompanying interim unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments and eliminations necessary for the fair presentation of our financial position as of June 30, 2017, and results of operations for the three and six months ended June 30, 2017 and 2016 have been included. Such adjustments are normal and recurring in nature. The interim results presented are not necessarily indicative of results that can be expected for a full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2016 included in the Annual Report on Form 10‑K filed by UDR and the Operating Partnership with the SEC on February 21, 2017. The accompanying interim unaudited consolidated statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the interim unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All intercompany accounts and transactions have been eliminated in consolidation. The Operating Partnership evaluated subsequent events through the date its financial statements were issued. No recognized or non-recognized subsequent events were noted. |
Significant Accounting Polici67
Significant Accounting Policies (UNITED DOMINION REALTY, L.P.) | 6 Months Ended |
Jun. 30, 2017 | |
Entity Information [Line Items] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017‑01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The ASU changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for the Company on January 1, 2018; early adoption is permitted. The ASU will be applied prospectively to any transactions occurring within the period of adoption. The Company expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In November 2016, the FASB issued ASU 2016‑18, Statement of Cash Flows (Topic 230), Restricted Cash . The ASU addresses the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments . The ASU addresses specific cash flow items with the objective of reducing existing diversity in practice, including the treatment of distributions received from equity method investees. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company elected to early adopt ASU 2016‑15 in 2016 and elected to classify distributions received from equity method investees using the cumulative earnings approach. No prior period amounts required adjustment as a result of the adoption. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The standard requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and to present the net amount of the financial instrument expected to be collected. The updated standard will be effective for the Company on January 1, 2020; early adoption is permitted on January 1, 2019. The Company is currently evaluating the effect that the updated standard will have on the consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016‑09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting . The ASU aims to simplify the accounting for share-based payments by amending the accounting for forfeitures, statutory tax withholding requirements, classification in the statements of cash flow and income taxes. The updated standard was effective for the Company on January 1, 2017, at which time the Company prospectively began accounting for forfeitures as incurred and began applying the updated rules for statutory withholdings. As a result of adopting the ASU, the Company recorded a one-time adjustment for existing estimated forfeitures of $0.6 million as of January 1, 2017 to Distributions in Excess of Net Income on January 1, 2017. In February 2016, the FASB issued ASU No. 2016‑02, Leases . The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. Full retrospective application is prohibited. The standard will be effective for the Company on January 1, 2019, with early adoption permitted. While the Company is currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures, we expect to recognize right-of-use assets and related lease liabilities on our consolidated balance sheets related to ground leases on any communities where we are the lessee. In May 2014, the FASB issued ASU No. 2014‑09, Revenue from Contracts with Customers . The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, including industry-specific revenue guidance. The standard specifically excludes lease contracts. The ASU allows for the use of either the full or modified retrospective transition method and will be effective for the Company on January 1, 2018, at which time the Company expects to adopt the updated standard using the modified retrospective approach. However, as the majority of the Company’s revenue is from rental income related to leases, the Company does not expect the ASU to have a material impact on the consolidated financial statements and related disclosures. Principles of Consolidation The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Company first evaluates whether each entity is a variable interest entity ("VIE"). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. Discontinued Operations In accordance with GAAP, a discontinued operation represents (1) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (2) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (1) a separate major line of business, (2) a separate major geographic area of operations, (3) a major equity method investment, or (4) other major parts of an entity. We record sales of real estate that do not meet the definition of a discontinued operation in Gain/(loss) on sale of real estate owned, net of tax on the Consolidated Statements of Operations. Revenue and Real Estate Sales Gain Recognition Rental income related to leases is recognized on an accrual basis when due from residents and tenants in accordance with GAAP. Rental payments are generally due on a monthly basis and recognized when earned. The Company recognizes interest income, management and other fees and incentives when earned, and the amounts are fixed and determinable. For sale transactions meeting the requirements for full accrual profit recognition, we remove the related assets and liabilities from our Consolidated Balance Sheets and record the gain or loss in the period the transaction closes. For sale transactions that do not meet the full accrual sale criteria due to our continuing involvement, we evaluate the nature of the continuing involvement and account for the transaction under an alternate method of accounting. Unless certain limited criteria are met, non-monetary transactions, including property exchanges, are accounted for at fair value. Sales to entities in which we retain or otherwise own an interest are accounted for as partial sales. If all other requirements for recognizing profit under the full accrual method have been satisfied and no other forms of continuing involvement are present, we recognize profit proportionate to the outside interest of the buyer and defer the gain on the interest we retain. The Company recognizes any deferred gain when the property is sold to a third party. In transactions accounted for by us as partial sales, we determine if the buyer of the majority equity interest in the venture was provided a preference as to cash flows in either an operating or a capital waterfall. If a cash flow preference has been provided, we recognize profit only to the extent that proceeds from the sale of the majority equity interest exceed costs related to the entire property. Notes Receivable The following table summarizes our notes receivable, net as of June 30, 2017 and December 31, 2016 ( dollars in thousands): Interest rate at Balance Outstanding June 30, June 30, December 31, 2017 2017 2016 Note due February 2020 (a) 10.00 % $ 12,994 $ 12,994 Note due July 2017 (b) — % — 2,500 Note due October 2020 (c) 8.00 % 1,296 1,296 Note due April 2021 (d) 10.00 % 3,000 3,000 Total notes receivable, net $ 17,290 $ 19,790 (a) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $13.0 million. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the eighth anniversary of the date of the note (February 2020). (b) At December 31, 2016, the Company had a secured note receivable with an unaffiliated third party with an aggregate commitment of $2.5 million. The outstanding balance was paid in full during the six months ended June 30, 2017. (c) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $2.0 million, of which, $1.3 million has been funded. Interest payments are due when the loan matures. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $10.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (October 2020). (d) The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $15.0 million, of which, $3.0 million has been funded. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $25.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (April 2021). The Company recognized $0.5 million and $0.5 million of interest income from notes receivable during the three months ended June 30, 2017 and 2016, respectively, and $0.9 million and $0.8 million during the six months ended June 30, 2017 and 2016, respectively, none of which was related party interest income. Interest income is included in Interest income and other income/(expense), net on the Consolidated Statements of Operations. Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to stockholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three and six months ended June 30, 2017 and 2016, the Company’s other comprehensive income/(loss) consisted of the gain/(loss) (effective portion) on derivative instruments that are designated as and qualify as cash flow hedges, (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) into earnings, and the allocation of other comprehensive income/(loss) to noncontrolling interests. The (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) is included in Interest expense on the Consolidated Statements of Operations. See Note 10, Derivatives and Hedging Activity, for further discussion. The allocation of other comprehensive income/(loss) to redeemable noncontrolling interests during the three months ended June 30, 2017 and 2016 was less than $(0.1) million and $(0.1) million, respectively, and during the six months ended June 30, 2017 and 2016 was $0.1 million and $(0.6) million, respectively. Income Taxes Due to the structure of the Company as a REIT and the nature of the operations for the operating properties, no provision for federal income taxes has been provided for at UDR. Historically, the Company has generally incurred only state and local excise and franchise taxes. UDR has elected for certain consolidated subsidiaries to be treated as taxable REIT subsidiaries (“TRS”). Income taxes for our TRS are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. The Company’s deferred tax assets are generally the result of differing depreciable lives on capitalized assets and timing of expense recognition for certain accrued liabilities. As of June 30, 2017 and December 31, 2016, UDR’s net deferred tax asset was $0.3 million and $0.6 million, respectively. GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition. The Company recognizes its tax positions and evaluates them using a two-step process. First, UDR determines whether a tax position is more likely than not (greater than 50 percent probability to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. UDR had no material unrecognized tax benefit, accrued interest or penalties at June 30, 2017. UDR and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The tax years 2013 through 2016 remain open to examination by tax jurisdictions to which we are subject. When applicable, UDR recognizes interest and/or penalties related to uncertain tax positions in Tax (provision)/benefit, net on the Consolidated Statements of Operations. |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017‑01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The ASU changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for the Operating Partnership on January 1, 2018; early adoption is permitted. The ASU will be applied prospectively to any transactions occurring within the period of adoption. The Operating Partnership expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In November 2016, the FASB issued ASU 2016‑18, Statement of Cash Flows (Topic 230), Restricted Cash . The ASU addresses the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The updated standard will be effective for the Operating Partnership on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Operating Partnership does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments . The ASU addresses specific cash flow items with the objective of reducing existing diversity in practice, including the treatment of distributions received from equity method investees. The updated standard will be effective for the Operating Partnership on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Operating Partnership elected to early adopt ASU 2016‑15 in 2016. The adoption did not have an impact on the Operating Partnership’s consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The standard requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and to present the net amount of the financial instrument expected to be collected. The updated standard will be effective for the Operating Partnership on January 1, 2020; early adoption is permitted on January 1, 2019. The Operating Partnership is currently evaluating the effect that the updated standard will have on the consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016‑02, Leases . The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. Full retrospective application is prohibited. The standard will be effective for the Operating Partnership on January 1, 2019, with early adoption permitted. While the Operating Partnership is currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures, we expect to recognize right-of-use assets and related lease liabilities on our consolidated balance sheets related to ground leases on any communities where we are the lessee. In May 2014, the FASB issued ASU No. 2014‑09, Revenue from Contracts with Customers . The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, including industry-specific revenue guidance. The standard specifically excludes lease contracts. The ASU allows for the use of either the full or modified retrospective transition method and will be effective for the Operating Partnership on January 1, 2018, at which time the Operating Partnership expects to adopt the updated standard using the modified retrospective approach. However, as the majority of the Operating Partnership’s revenue is from rental income related to leases, the Operating Partnership does not expect the ASU to have a material impact on the consolidated financial statements and related disclosures. Principles of Consolidation The Operating Partnership accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the amended consolidation guidance. The Operating Partnership first evaluates whether each entity is a variable interest entity ("VIE"). Under the VIE model, the Operating Partnership consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Operating Partnership consolidates an entity when it controls the entity through ownership of a majority voting interest. Discontinued Operations In accordance with GAAP, a discontinued operation represents (1) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (2) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (1) a separate major line of business, (2) a separate major geographic area of operations, (3) a major equity method investment, or (4) other major parts of an entity. We record sales of real estate that do not meet the definition of a discontinued operation in Gain/(loss) on sale of real estate owned, net of tax on the Consolidated Statements of Operations. Income/(Loss) Per Operating Partnership Unit Basic income/(loss) per OP Unit is computed by dividing net income/(loss) attributable to the general and limited partner unitholders by the weighted average number of general and limited partner units outstanding during the year. Diluted income/(loss) per OP Unit reflects the potential dilution that could occur if securities or other contracts to issue OP Units were exercised or converted into OP Units or resulted in the issuance of OP Units and then shared in the income/(loss) of the Operating Partnership. Revenue and Real Estate Sales Gain Recognition Rental income related to leases is recognized on an accrual basis when due from residents and tenants in accordance with GAAP. Rental payments are generally due on a monthly basis and recognized when earned. The Operating Partnership recognizes interest income, fees and incentives when earned, fixed and determinable. For sale transactions meeting the requirements for full accrual profit recognition, we remove the related assets and liabilities from our Consolidated Balance Sheets and record the gain or loss in the period the transaction closes. For sale transactions that do not meet the full accrual sale criteria due to our continuing involvement, we evaluate the nature of the continuing involvement and account for the transaction under an alternate method of accounting. Unless certain limited criteria are met, non-monetary transactions, including property exchanges, are accounted for at fair value. Sales to entities in which we or our General Partner retain or otherwise own an interest are accounted for as partial sales. If all other requirements for recognizing profit under the full accrual method have been satisfied and no other forms of continuing involvement are present, we recognize profit proportionate to the outside interest in the buyer and defer the gain on the interest we or our General Partner retain. The Operating Partnership recognizes any deferred gain when the property is sold to a third party. In transactions accounted by us as partial sales, we determine if the buyer of the majority equity interest in the venture was provided a preference as to cash flows in either an operating or a capital waterfall. If a cash flow preference has been provided, we recognize profit only to the extent that proceeds from the sale of the majority equity interest exceed costs related to the entire property. Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to unitholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three and six months ended June 30, 2017 and 2016, the Operating Partnership’s other comprehensive income/(loss) consisted of the gain/(loss) (effective portion) on derivative instruments that are designated as and qualify as cash flow hedges and (gain)/loss reclassified from other comprehensive income/(loss) into earnings. The (gain)/loss reclassified from other comprehensive income/(loss) is included in Interest expense on the Consolidated Statements of Operations. See Note 8, Derivatives and Hedging Activity, for further discussion. Income Taxes The taxable income or loss of the Operating Partnership is reported on the tax returns of the partners. Accordingly, no provision has been made in the accompanying financial statements for federal or state income taxes on income that is passed through to the partners. However, any state or local revenue, excise or franchise taxes that result from the operating activities of the Operating Partnership are recorded at the entity level. The Operating Partnership’s tax returns are subject to examination by federal and state taxing authorities. Net income for financial reporting purposes differs from the net income for income tax reporting purposes primarily due to temporary differences, principally real estate depreciation and the tax deferral of certain gains on property sales. The differences in depreciation result from differences in the book and tax basis of certain real estate assets and the differences in the methods of depreciation and lives of the real estate assets. The Operating Partnership evaluates the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Operating Partnership’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management of the Operating Partnership is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. The Operating Partnership has no examinations in progress and none are expected at this time. Management of the Operating Partnership has reviewed all open tax years (2013 through 2016) of tax jurisdictions and concluded there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. |
Real Estate Owned (UNITED DOMIN
Real Estate Owned (UNITED DOMINION REALTY, L.P.) | 6 Months Ended |
Jun. 30, 2017 | |
Entity Information [Line Items] | |
REAL ESTATE OWNED | 3. REAL ESTATE OWNED Real estate assets owned by the Company consist of income producing operating properties, properties under development, land held for future development, and sold or held for disposition properties. As of June 30, 2017, the Company owned and consolidated 128 communities in 10 states plus the District of Columbia totaling 39,822 apartment homes. The following table summarizes the carrying amounts for our real estate owned (at cost) as of June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Land $ 1,788,391 $ 1,801,576 Depreciable property — held and used: Land improvements 183,796 178,701 Building, improvements, and furniture, fixtures and equipment 7,451,004 7,291,570 Under development: Land and land improvements 111,028 111,028 Building, improvements, and furniture, fixtures and equipment 354,701 231,254 Real estate held for disposition: Land and land improvements — 1,104 Building, improvements, and furniture, fixtures and equipment — 520 Real estate owned 9,888,920 9,615,753 Accumulated depreciation (3,132,031) (2,923,625) Real estate owned, net $ 6,756,889 $ 6,692,128 Acquisitions During the six months ended June 30, 2017, the Company exercised its fixed-price option to purchase its joint venture partner’s ownership interest in a 244 home operating community in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $66.0 million. As a result, the Company consolidated the operating community. The Company had previously accounted for its 49% ownership interest as a preferred equity investment in an unconsolidated joint venture (see Note 5, Joint Ventures and Partnerships ). As a result of the consolidation, the Company increased its real estate owned by approximately $97.0 million, recorded approximately $1.7 million of in-place lease intangibles and recorded a gain on consolidation of $12.2 million, which is included in Income/(loss) from unconsolidated entities on the Consolidated Statements of Operations. Dispositions During the six months ended June 30, 2017, the Company sold a parcel of land in Richmond, Virginia for gross proceeds of $3.5 million, resulting in net proceeds of $3.3 million and a gain of $2.1 million. Other Activity Predevelopment, development, and redevelopment projects and related costs are capitalized and reported on the Consolidated Balance Sheets as Total real estate owned, net of accumulated depreciation . The Company capitalizes costs directly related to the predevelopment, development, and redevelopment of a capital project, which include, but are not limited to, interest, real estate taxes, insurance, and allocated development and redevelopment overhead related to support costs for personnel working on the capital projects. We use our professional judgment in determining whether such costs meet the criteria for capitalization or must be expensed as incurred. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress and such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. These costs, excluding the direct costs of development and redevelopment and capitalized interest, were $1.7 million and $2.7 million for the three months ended June 30, 2017 and 2016, respectively, and $4.4 million and $4.7 million for the six months ended June 30, 2017 and 2016, respectively. Total interest capitalized was $4.6 million and $3.8 million for the three months ended June 30, 2017 and 2016, respectively, and $9.4 million and $8.0 million for the six months ended June 30, 2017 and 2016, respectively. As each home in a capital project is completed and becomes available for lease-up, the Company ceases capitalization on the related portion and depreciation commences over the estimated useful life. In connection with the acquisition of certain properties, the Company agreed to pay certain of the tax liabilities of certain contributors if the Company sells one or more of the properties contributed in a taxable transaction prior to the expiration of specified periods of time following the acquisition. The Company may, however, sell, without being required to pay any tax liabilities, any of such properties in a non-taxable transaction, including, but not limited to, in an exchange under Section 1031 of the Internal Revenue Code. Further, the Company has agreed to maintain certain debt that may be guaranteed by certain contributors for specified periods of time following the acquisition. The Company, however, has the ability to refinance or repay guaranteed debt or to substitute new debt if the debt and the guaranty continue to satisfy certain conditions. |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
REAL ESTATE OWNED | 3. REAL ESTATE OWNED Real estate assets owned by the Operating Partnership consist of income producing operating properties, properties under development, land held for future development, and sold or held for disposition properties. At June 30, 2017, the Operating Partnership owned and consolidated 54 communities in eight states plus the District of Columbia totaling 16,698 apartment homes. The following table summarizes the carrying amounts for our real estate owned (at cost) as of June 30, 2017 and December 31, 2016 (dollars in thousands) : June 30, December 31, 2017 2016 Land $ 814,853 $ 836,644 Depreciable property — held and used: Buildings, improvements, and furniture, fixtures and equipment 2,879,870 2,838,060 Real estate owned 3,694,723 3,674,704 Accumulated depreciation (1,482,993) (1,408,815) Real estate owned, net $ 2,211,730 $ 2,265,889 The Operating Partnership did not have any acquisitions or sales of real estate during the six months ended June 30, 2017. Predevelopment, development, and redevelopment projects and related costs are capitalized and reported on the Consolidated Balance Sheets as Total real estate owned, net of accumulated depreciation . The Operating Partnership capitalizes costs directly related to the predevelopment, development, and redevelopment of a capital project, which include, but are not limited to, interest, real estate taxes, insurance, and allocated development and redevelopment overhead related to support costs for personnel working on the capital projects. We use our professional judgment in determining whether such costs meet the criteria for capitalization or must be expensed as incurred. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress and such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. These costs, excluding the direct costs of development and redevelopment and capitalized interest, were $0.1 million and $0.3 million for the three months ended June 30, 2017 and 2016, respectively, and $0.4 million and $0.6 million for the six months ended June 30, 2017 and 2016, respectively. Total interest capitalized was less than $0.1 million for the three months ended June 30, 2017 and 2016, and less than $0.1 million and $0.2 million for the six months ended June 30, 2017 and 2016, respectively. As each home in a capital project is completed and becomes available for lease-up, the Operating Partnership ceases capitalization on the related portion and depreciation commences over the estimated useful life. In connection with the acquisition of certain properties, the Operating Partnership agreed to pay certain of the tax liabilities of certain contributors if the Operating Partnership sells one or more of the properties contributed in a taxable transaction prior to the expiration of specified periods of time following the acquisition. The Operating Partnership may, however, sell, without being required to pay any tax liabilities, any of such properties in a non-taxable transaction, including, but not limited to, in an exchange under Section 1031 of the Internal Revenue Code. Further, the Operating Partnership has agreed to maintain certain debt that may be guaranteed by certain contributors for specified periods of time following the acquisition. The Operating Partnership, however, has the ability to refinance or repay guaranteed debt or to substitute new debt if the debt and the guaranty continue to satisfy certain condition |
Unconsolidated Entities (UNITED
Unconsolidated Entities (UNITED DOMINION REALTY, L.P.) | 6 Months Ended |
Jun. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | |
UNCONSOLIDATED ENTITIES | 5. JOINT VENTURES AND PARTNERSHIPS UDR has entered into joint ventures and partnerships with unrelated third parties to acquire real estate assets that are either consolidated and included in Real estate owned on the Consolidated Balance Sheets or are accounted for under the equity method of accounting, and are included in Investment in and advances to unconsolidated joint ventures, net , on the Consolidated Balance Sheets. The Company consolidates the entities that we control as well as any variable interest entity where we are the primary beneficiary. Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. UDR’s joint ventures and partnerships are funded with a combination of debt and equity. Our losses are limited to our investment and except as noted below, the Company does not guarantee any debt, capital payout or other obligations associated with our joint ventures and partnerships. The Company recognizes earnings or losses from our investments in unconsolidated joint ventures and partnerships consisting of our proportionate share of the net earnings or losses of the joint ventures and partnerships. In addition, we may earn fees for providing management services to the unconsolidated joint ventures and partnerships. The following table summarizes the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net, which are accounted for under the equity method of accounting as of June 30, 2017 and December 31, 2016 (dollars in thousands) : Number of Number of Apartment Properties Homes Investment at UDR’s Ownership Interest Location of June 30, June 30, June 30, December 31, June 30, December 31, Joint Venture Properties 2017 2017 2017 2016 2017 2016 Operating and development: UDR/MetLife I Los Angeles, CA 1 development community (a) 150 $ 34,416 $ 25,209 50.0 % 50.0 % UDR/MetLife II (b) Various 18 operating communities 4,059 309,586 311,282 50.0 % 50.0 % Other UDR/MetLife Development Joint Ventures Various 2 operating community; 1,437 142,363 160,979 50.6 % 50.6 % 3 development communities (a) UDR/MetLife Vitruvian Park ® Addison, TX 3 operating communities; 1,513 73,317 72,414 50.0 % 50.0 % 1 development community (a); 5 land parcels UDR/KFH Washington, D.C. 3 operating communities 660 10,991 12,835 30.0 % 30.0 % Investment in and advances to unconsolidated joint ventures, net, before participating loan investment, preferred equity investments and other investments $ 570,673 $ 582,719 Income from investments Investment at Three Months Ended Six Months Ended Years To UDR June 30, December 31, June 30, June 30, Location Rate Maturity Commitment 2017 2016 2017 2016 2017 2016 Participating loan investment: Steele Creek Denver, CO 6.5 % 0.3 $ 93,458 $ 93,984 $ 94,003 $ 1,550 $ 1,560 $ 3,083 $ 3,079 Preferred equity investments: West Coast Development Joint Ventures (c) Various 6.5 % (c) N/A — 161,552 150,303 773 1,409 13,539 3,198 1532 Harrison (d) San Francisco, CA 11.0 % 5.0 24,645 6,398 — 2 — 2 — Other investments: The Portals (e) Washington, DC 11.0 % 4.0 $ 38,559 10,560 — $ 16 $ — $ 16 $ — Total investment in and advances to unconsolidated joint ventures, net $ 843,167 $ 827,025 (a) The number of apartment homes for the communities under development presented in the table above is based on the projected number of total homes upon completion of development. As of June 30, 2017, 726 apartment homes had been completed in Other UDR/MetLife Development Joint Ventures, and no apartment homes had been completed in UDR/MetLife I or in UDR/MetLife Vitruvian Park ® . (b) In September 2015, the 717 Olympic community, which is owned by the UDR/MetLife II joint venture, experienced extensive water damage due to a ruptured water pipe. For the six months ended June 30, 2017 and 2016, the Company recorded casualty-related charges/(recoveries) of $0.9 million and $(1.1) million, respectively, representing its proportionate share of the total charges/(recoveries) recognized. (c) In May 2015, the Company entered into a joint venture agreement with an unaffiliated joint venture partner and agreed to pay $136.3 million for a 48% ownership interest in a portfolio of five communities that were under construction. The communities are located in three of the Company’s core, coastal markets: Seattle, Washington, Los Angeles and Orange County, California. UDR earns a 6.5% preferred return on its investment through each individual community’s date of stabilization, defined as when a community reaches 80% occupancy for 90 consecutive days, while the joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization, income and expense are shared based on each partner’s ownership percentage and the Company no longer receives a 6.5% preferred return on its investment in the stabilized community. The Company serves as property manager and earns a management fee during the lease-up phase and subsequent operation of each of the communities. The unaffiliated joint venture partner is the general partner of the joint venture and the developer of the communities. At inception of the agreement, the Company had a fixed-price option to acquire the remaining interest in each community beginning one year after completion. If the options are exercised for all five communities, the Company’s total purchase price will be $597.4 million. In the event the Company does not exercise its options to purchase at least two communities, the unaffiliated joint venture partner will be entitled to earn a contingent disposition fee equal to a 6.5% return on its implied equity in the communities not acquired. The unaffiliated joint venture partner is providing certain guaranties and there are construction loans on all five communities. During the six months ended June 30, 2017, the Company exercised its fixed-price option to purchase the joint venture partner’s ownership interest in one of the five communities, a 244 home operating community in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $66.0 million. As a result, the Company consolidated the operating community and it is no longer accounted for as a preferred equity investment in an unconsolidated joint venture (see Note 3, Real Estate Owned ). As a result of the consolidation, the Company recorded a gain on consolidation of $12.2 million, which is included in Income/(loss) from unconsolidated entities on the Consolidated Statements of Operations. As of June 30, 2017, construction was completed on three of the four remaining communities. Two of the four remaining communities had achieved stabilization. The other two completed communities have not achieved stabilization and the Company continues to receive a 6.5% preferred return on its investment in those communities. In March 2017 and May 2017, the Company entered into two additional joint venture agreements with the unaffiliated joint venture partner and agreed to pay $15.5 million for a 49% ownership interest in a 155 home community that is currently under construction in Seattle, Washington and $16.1 million for a 49% ownership interest in a 276 home community that is currently under construction in Hillsboro, Oregon (together with the May 2015 joint venture described above, the “West Coast Development Joint Ventures”). Consistent with the terms of the May 2015 joint venture agreement, UDR earns a 6.5% preferred return on its investments through the communities’ date of stabilization, as defined above, while our joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization of the communities, income and expense will be shared based on each partner’s ownership percentage and the Company will no longer receive a 6.5% preferred return on its investment. The Company will serve as property manager and will earn a management fee during the lease-up phase and subsequent operation of the stabilized communities. The unaffiliated joint venture partner is the general partner and the developer of the communities. The Company has concluded it does not control the joint ventures and accounts for them under the equity method of accounting. The Company has a fixed-price option to acquire the remaining interest in the communities beginning one year after completion for a total price of $61.3 million and $72.3 million, respectively. The unaffiliated joint venture partner is providing certain guaranties and there are construction loans on the communities. The Company’s recorded equity investment in the West Coast Development Joint Ventures at June 30, 2017 and December 31, 2016 of $ 161.6 million and $1 50.3 million, respectively, is inclusive of outside basis costs and our accrued but unpaid preferred return. (d) In June 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 136 apartment home community in San Francisco, California. The Company’s preferred equity investment of up to $24.6 million will earn a preferred return of 11.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. As of June 30, 2017, the Company had contributed approximately $6.4 million to the joint venture. The Company has concluded it does not control the joint venture and accounts for it under the equity method of accounting. (e) In May 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner. The joint venture has made a mezzanine loan to a third-party developer of a 373 apartment home community in Washington, D.C. The unaffiliated joint venture partner is the managing member of the joint venture. The mezzanine loan is for up to $71.0 million at an interest rate of 13.5% per annum and carries a term of four years with one, 12-month extension option. The Company’s investment commitment to the joint venture is approximately $38.6 million and earns a weighted average return rate of approximately 11.0% per annum. As of June 30, 2017, the Company had contributed approximately $10.6 million to the joint venture. The Company has concluded it does not control the joint venture and accounts for it under the equity method of accounting. As of June 30, 2017 and December 31, 2016, the Company had deferred fees of $10.3 million and $9.5 million, respectively, which will be recognized through earnings over the weighted average life of the related properties, upon the disposition of the properties to a third party, or upon completion of certain development obligations. The Company recognized management fees of $3.3 million and $2.6 million for the three months ended June 30, 2017 and 2016, respectively, and $5.9 million and $5.4 million for the six months ended June 30, 2017 and 2016, respectively, for our management of the communities held by the joint ventures and partnerships. The management fees are included in Joint venture management and other fees on the Consolidated Statements of Operations. The Company may, in the future, make additional capital contributions to certain of our joint ventures and partnerships should additional capital contributions be necessary to fund acquisitions or operations. We evaluate our investments in unconsolidated joint ventures and partnerships when events or changes in circumstances indicate that there may be an other-than-temporary decline in value. We consider various factors to determine if a decrease in the value of the investment is other-than-temporary. The Company did not recognize any other-than-temporary decreases in the value of its investments in unconsolidated joint ventures or partnerships during the three and six months ended June 30, 2017 and 2016. Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of June 30, 2017 and December 31, 2016 ( dollars in thousands ): June 30, December 31, 2017 2016 Total real estate, net $ 2,912,814 $ 2,901,067 Cash and cash equivalents 33,523 32,503 Other assets 21,295 19,047 Total assets $ 2,967,632 $ 2,952,617 Amount due to/(from) UDR $ 1,530 $ 521 Third party debt, net 1,837,639 1,794,379 Accounts payable and accrued liabilities 66,197 66,931 Total liabilities $ 1,905,366 $ 1,861,831 Total equity $ 1,062,266 $ 1,091,326 Combined summary financial information relating to the unconsolidated joint ventures ’ and partnerships ’ operations (not just our proportionate share) is presented below for the three and six months ended June 30, 2017 and 2016 ( dollars in thousands ) : Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Total revenues $ 61,175 $ 58,153 $ 119,699 $ 113,190 Property operating expenses (22,836) (22,981) (44,670) (46,394) Real estate depreciation and amortization (24,785) (21,770) (48,117) (40,713) Operating income/(loss) 13,554 13,402 26,912 26,083 Interest expense (18,949) (17,005) (36,640) (33,184) Other income/(expense) — (2) — (4) Net income/(loss) $ (5,395) $ (3,605) $ (9,728) $ (7,105) |
United Dominion Reality, L.P. | |
Schedule of Equity Method Investments [Line Items] | |
UNCONSOLIDATED ENTITIES | 4. UNCONSOLIDATED ENTITIES The DownREIT Partnership is accounted for by the Operating Partnership under the equity method of accounting and is included in Investment in unconsolidated entities on the Consolidated Balance Sheets. The Operating Partnership recognizes earnings or losses from its investments in unconsolidated entities consisting of our proportionate share of the net earnings or losses of the partnership in accordance with the Partnership Agreement. The DownREIT Partnership is a VIE as the limited partners lack substantive kick-out rights and substantive participating rights. The Operating Partnership is not the primary beneficiary of the DownREIT Partnership as it lacks the power to direct the activities that most significantly impact its economic performance and will continue to account for its interest as an equity method investment. See Note 2, Significant Accounting Policies . As of June 30, 2017, the DownREIT Partnership owned 13 communities with 6,261 apartment homes. The Operating Partnership’s investment in the DownREIT Partnership was $94.7 million and $112.9 million as of June 30, 2017 and December 31, 2016, respectively. Combined summary balance sheets relating to all of the DownREIT Partnership (not just our proportionate share) are presented below as of June 30, 2017 and December 31, 2016 ( dollars in thousands ): June 30, December 31, 2017 2016 Total real estate, net $ 1,388,025 $ 1,413,983 Cash and cash equivalents 32 66 Note receivable from the General Partner 126,500 126,500 Other assets 4,233 4,843 Total assets $ 1,518,790 $ 1,545,392 Secured debt, net $ 440,546 $ 443,607 Other liabilities 27,415 27,571 Total liabilities 467,961 471,178 Total capital 1,050,829 1,074,214 Total liabilities and capital $ 1,518,790 $ 1,545,392 Combined summary financial information relating to all of the DownREIT Partnership (not just our proportionate share) is presented below for the three and six months ended June 30, 2017 and 2016 ( dollars in thousands ) : Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Rental income $ 33,628 $ 32,646 $ 66,926 $ 64,263 Property operating expenses (13,639) (13,621) (27,616) (27,890) Real estate depreciation and amortization (20,909) (30,308) (41,516) (60,361) Operating income/(loss) (920) (11,283) (2,206) (23,988) Interest expense (3,312) (3,524) (7,172) (7,265) Interest income on note receivable from the General Partner 1,166 1,179 2,333 2,359 Net income/(loss) $ (3,066) $ (13,628) $ (7,045) $ (28,894) |
Debt, Net (UNITED DOMINION REAL
Debt, Net (UNITED DOMINION REALTY, L.P.) | 6 Months Ended |
Jun. 30, 2017 | |
Entity Information [Line Items] | |
DEBT | 6. SECURED AND UNSECURED DEBT, NET The following is a summary of our secured and unsecured debt at June 30, 2017 and December 31, 2016 ( dollars in thousands ): Principal Outstanding As of June 30, 2017 Weighted Weighted Average Average Number of June 30, December 31, Interest Years to Communities 2017 2016 Rate Maturity Encumbered Secured Debt: Fixed Rate Debt Mortgage notes payable (a) $ 399,315 $ 402,996 4.04 % 5.8 7 Fannie Mae credit facilities (b) 285,836 355,836 4.86 % 2.5 8 Deferred financing costs (1,934) (2,681) Total fixed rate secured debt, net 683,217 756,151 4.39 % 4.4 15 Variable Rate Debt Tax-exempt secured notes payable (c) 94,700 94,700 1.54 % 5.7 2 Fannie Mae credit facilities (b) 29,034 280,946 2.61 % 1.4 1 Deferred financing costs (304) (939) Total variable rate secured debt, net 123,430 374,707 1.79 % 4.7 3 Total Secured Debt, net 806,647 1,130,858 3.99 % 4.5 18 Unsecured Debt: Variable Rate Debt Borrowings outstanding under unsecured credit facility due January 2020 (d) (i) — — — % 2.6 Borrowings outstanding under unsecured commercial paper program due July 2017 (e) (i) 240,000 — 1.49 % 0.1 Borrowings outstanding under unsecured working capital credit facility due January 2019 (f) 40,058 21,350 2.12 % 1.5 Term Loan Facility due January 2021 (d) (i) 35,000 35,000 2.00 % 3.6 Fixed Rate Debt 4.25% Medium-Term Notes due June 2018 (net of discounts of $394 and $608, respectively) (i) 299,606 299,392 4.25 % 0.9 3.70% Medium-Term Notes due October 2020 (net of discounts of $26 and $30, respectively) (i) 299,974 299,970 3.70 % 3.3 1.98% Term Loan Facility due January 2021 (d) (i) 315,000 315,000 1.98 % 3.6 4.63% Medium-Term Notes due January 2022 (net of discounts of $1,625 and $1,805, respectively) (i) 398,375 398,195 4.63 % 4.5 3.75% Medium-Term Notes due July 2024 (net of discounts of $730 and $782, respectively) (i) 299,270 299,218 3.75 % 7.0 8.50% Debentures due September 2024 15,644 15,644 8.50 % 7.2 4.00% Medium-Term Notes due October 2025 (net of discounts of $568 and $602, respectively) (g) (i) 299,432 299,398 4.00 % 8.3 2.95% Medium-Term Notes due September 2026 (i) 300,000 300,000 2.95 % 9.2 3.50% Medium-Term Notes due July 2027 (net of discounts of $705 and $0, respectively) (h) (i) 299,295 — 3.50 % 10.0 Other 20 21 Deferred financing costs (13,673) (12,568) Total Unsecured Debt, net 2,828,001 2,270,620 3.49 % 5.2 Total Debt, net $ 3,634,648 $ 3,401,478 3.67 % 5.1 For purposes of classification of the above table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument. Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. As of June 30, 2017, secured debt encumbered $1.7 billion or 16.9% of UDR’s total real estate owned based upon gross book value ($8.2 billion or 83.1% of UDR’s real estate owned based on gross book value is unencumbered). (a) At June 30, 2017, fixed rate mortgage notes payable are generally due in monthly installments of principal and interest and mature at various dates from May 2019 through November 2026 and carry interest rates ranging from 3.15% to 5.86%. The Company will from time to time acquire properties subject to fixed rate debt instruments. In those situations, the Company records the debt at its estimated fair value and amortizes any difference between the fair value and par value to interest expense over the life of the underlying debt instrument. During the three months ended June 30, 2017 and 2016, the Company had $0.7 million and $0.7 million, respectively, and during the six months ended June 30, 2017 and 2016, the Company had $1.5 million and $ 1.5 million, respectively, of amortization of the fair market adjustment of debt assumed in the acquisition of properties,which was included in Interest expense on the Consolidated Statements of Operations. The unamortized fair market adjustment was a net premium of $9.7 million and $11.2 million at June 30, 2017 and December 31, 2016, respectively. (b) UDR had two secured credit facilities with Fannie Mae with an aggregate commitment of $314.9 million at June 30, 2017. The Fannie Mae credit facilities mature at various dates from December 201 8 through July 2020 and bear interest at floating and fixed rates. At June 30, 2017, $285.8 million of the outstanding balance was fixed and had a weighted average interest rate of 4.86% and the remaining balance of $29.0 million had a weighted average variable interest rate of 2.61%. During the six months ended June 30, 2017, the Company prepaid $275.3 million of its secured credit facilities with borrowings under the Company’s unsecured commercial paper program and proceeds from the issuance of senior unsecured medium-term notes. The Company incurred prepayment costs of $4.3 million and $5.8 million during the three and six months ended June 30, 2017, respectively, which were included in Interest expense on the Consolidated Statements of Operations. Further information related to these credit facilities is as follows (dollars in thousands) : June 30, December 31, 2017 2016 Borrowings outstanding $ 314,870 $ 636,782 Weighted average borrowings during the period ended 518,437 737,802 Maximum daily borrowings during the period ended 636,782 813,544 Weighted average interest rate during the period ended 4.1 % 3.9 % Weighted average interest rate at the end of the period 4.7 % 3.8 % (c) The variable rate mortgage notes payable that secure tax-exempt housing bond issues mature in August 2019 and March 2032. Interest on these notes is payable in monthly installments. The variable rate mortgage notes have interest rates ranging from 1.52% to 1.54% as of June 30, 2017. (d) The Company has a $1.1 billion unsecured revolving credit facility (the “Revolving Credit Facility”) and a $350.0 million unsecured term loan facility (the “Term Loan Facility”). The credit agreement for these facilities (the "Credit Agreement") allows the total commitments under the Revolving Credit Facility and the total borrowings under the Term Loan Facility to be increased to an aggregate maximum amount of up to $2.0 billion, subject to certain conditions, including obtaining commitments from any one or more lenders. The Revolving Credit Facility has a scheduled maturity date of January 31, 2020, with two six-month extension options, subject to certain conditions. The Term Loan Facility has a scheduled maturity date of January 29, 2021. Based on the Company’s current credit rating, the Revolving Credit Facility has an interest rate equal to LIBOR plus a margin of 90 basis points and a facility fee of 15 basis points, and the Term Loan Facility has an interest rate equal to LIBOR plus a margin of 95 basis points. Depending on the Company’s credit rating, the margin under the Revolving Credit Facility ranges from 85 to 155 basis points, the facility fee ranges from 12.5 to 30 basis points, and the margin under the Term Loan Facility ranges from 90 to 175 basis points. The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Credit Agreement also includes customary events of default, in certain cases subject to customary periods to cure. The occurrence of an event of default, following the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest and all other amounts payable under the Credit Agreement to be immediately due and payable. The following is a summary of short-term bank borrowings under the Revolving Credit Facility at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total revolving credit facility $ 1,100,000 $ 1,100,000 Borrowings outstanding at end of period (1) — — Weighted average daily borrowings during the period ended 4,586 161,505 Maximum daily borrowings during the period ended 120,000 340,000 Weighted average interest rate during the period ended 1.6 % 1.4 % Interest rate at end of the period — % — % (1) Excludes $3.3 million and $2.9 million of letters of credit at June 30, 2017 and December 31, 2016, respectively. (e) On January 23, 2017, the Company entered into an unsecured commercial paper program. Under the terms of the program, the Company may issue unsecured commercial paper up to a maximum aggregate amount outstanding of $500 million. The notes are sold under customary terms in the United States commercial paper market and rank pari passu with all of the Company’s other unsecured indebtedness. The notes are fully and unconditionally guaranteed by the Operating Partnership. The following is a summary of short-term bank borrowings under the unsecured commercial paper program at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total unsecured commercial paper program $ 500,000 $ — Borrowings outstanding at end of period 240,000 — Weighted average daily borrowings during the period ended 186,743 — Maximum daily borrowings during the period ended 340,000 — Weighted average interest rate during the period ended 1.3 % — % Interest rate at end of the period 1.5 % — % (f) The Company has a working capital credit facility, which provides for a $75 million unsecured revolving credit facility (the “Working Capital Credit Facility”) with a scheduled maturity date of January 1, 2019. Based on the Company’s current credit rating, the Working Capital Credit Facility has an interest rate equal to LIBOR plus a margin of 90 basis points. Depending on the Company’s credit rating, the margin ranges from 85 to 155 basis points. The following is a summary of short-term bank borrowings under the Working Capital Credit Facility at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total working capital credit facility $ 75,000 $ 75,000 Borrowings outstanding at end of period 40,058 21,350 Weighted average daily borrowings during the period ended 24,809 21,936 Maximum daily borrowings during the period ended 67,799 69,633 Weighted average interest rate during the period ended 1.8 % 1.4 % Interest rate at end of the period 2.1 % 1.7 % (g) The Company previously entered into forward starting interest rate swaps to hedge against interest rate risk on $200 million of this debt. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 4.55%. (h) On June 16, 2017, the Company issued $300 million of 3.50% senior unsecured medium-term notes due July 1, 2027. Interest is payable semi-annually in arrears on January 1 and July 1 of each year, beginning on January 1, 2018. The notes were priced at 99.764% of the prinicipal amount at issuance. The Company used the net proceeds for the repayment of outstanding indebtedness and for general corporate purposes. (i) The Operating Partnership is a guarantor of this debt. The aggregate maturities, including amortizing principal payments of unsecured and secured debt, of total debt for the next ten calendar years subsequent to June 30, 2017 are as follows (dollars in thousands): Total Fixed Total Variable Total Total Total Year Secured Debt Secured Debt Secured Debt Unsecured Debt Debt 2017 $ 2,228 $ — $ 2,228 $ 240,000 $ 242,228 2018 4,636 29,034 33,670 300,000 333,670 2019 249,395 67,700 317,095 40,058 357,153 2020 198,076 — 198,076 300,000 498,076 2021 1,117 — 1,117 350,000 351,117 2022 1,157 — 1,157 400,000 401,157 2023 41,245 — 41,245 — 41,245 2024 — — — 315,644 315,644 2025 127,600 — 127,600 300,000 427,600 2026 50,000 — 50,000 300,000 350,000 Thereafter — 27,000 27,000 300,000 327,000 Subtotal 675,454 123,734 799,188 2,845,702 3,644,890 Non-cash (a) 7,763 (304) 7,459 (17,701) (10,242) Total $ 683,217 $ 123,430 $ 806,647 $ 2,828,001 $ 3,634,648 (a) Includes the unamortized balance of fair market value adjustments, premiums/discounts and deferred financing costs. For the three months ended June 30, 2017 and 2016, the Company amortized $1.1 million and $1.2 million, respectively, of deferred financing costs into Interest expense. For the six months ended June 30, 2017 and 2016, the Company amortized $2.1 million and $ 2.4 million, respectively, of deferred financing costs into Interest expense. We were in compliance with the covenants of our debt instruments at June 30, 2017. |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
DEBT | 5. DEBT, NET Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. For purposes of classification in the following table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Operating Partnership having effectively established the fixed interest rate for the underlying debt instrument. Secured debt consists of the following as of June 30, 2017 and December 31, 2016 ( dollars in thousands ): Principal Outstanding As of June 30, 2017 Weighted Weighted Average June 30, December 31, Average Years to Communities 2017 2016 Interest Rate Maturity Encumbered Fixed Rate Debt Fannie Mae credit facilities $ 133,204 $ 244,912 5.28 % 2.3 4 Deferred financing costs (358) (1,070) Total fixed rate secured debt, net 132,846 243,842 5.28 % 2.3 4 Variable Rate Debt Tax-exempt secured note payable 27,000 27,000 1.52 % 14.7 1 Fannie Mae credit facilities — 163,637 — % — — Deferred financing costs (82) (505) Total variable rate secured debt, net 26,918 190,132 1.52 % 14.7 1 Total Secured Debt, Net $ 159,764 $ 433,974 4.96 % 4.4 5 As of June 30, 2017, an aggregate commitment of $133.2 million of the General Partner’s secured credit facilities with Fannie Mae was owed by the Operating Partnership based on the ownership of the assets securing the debt. The entire commitment was outstanding at June 30, 2017. The portions of the Fannie Mae credit facilities owed by the Operating Partnership mature at various dates from October 2019 through December 2019 and bear interest at fixed rates. At June 30, 2017, the entire outstanding balance was fixed and had a weighted average interest rate of 5.28%. During the six months ended June 30, 2017, $275.3 million of the Fannie Mae credit facilities owed by the Operating Partnership were prepaid. The Operating Partnership incurred prepayment costs of $4.3 million and $5.8 million during the three and six months ended June 30, 2017, respectively, which were included in Interest expense on the Consolidated Statements of Operations. The following information relates to the credit facilities owed by the Operating Partnership (dollars in thousands) : June 30, December 31, 2017 2016 Borrowings outstanding $ 133,204 $ 408,549 Weighted average borrowings during the period ended 313,489 414,759 Maximum daily borrowings during the period ended 408,549 421,001 Weighted average interest rate during the period ended 4.3 % 3.9 % Interest rate at the end of the period 5.3 % 4.0 % The Operating Partnership may from time to time acquire properties subject to fixed rate debt instruments. In those situations, management will record the secured debt at its estimated fair value and amortize any difference between the fair value and par to interest expense over the life of the underlying debt instrument. The Operating Partnership did not have any unamortized fair value adjustments associated with the fixed rate debt instruments on the Operating Partnership’s properties. Fixed Rate Debt At June 30, 2017, the General Partner had borrowings against its fixed rate facilities of $285.8 million, of which $133.2 million was owed by the Operating Partnership based on the ownership of the assets securing the debt. As of June 30, 2017, the fixed rate Fannie Mae credit facilities owed by the Operating Partnership had a weighted average fixed interest rate of 5.28%. Variable Rate Debt Tax-exempt secured note payable. The variable rate mortgage note payable that secures tax-exempt housing bond issues matures March 2032. Interest on this note is payable in monthly installments. The mortgage note payable has an interest rate of 1.52% as of June 30, 2017. Secured credit facilities. At June 30, 2017, the General Partner had borrowings against its variable rate facilities of $29.0 million, none of which was owed by the Operating Partnership based on the ownership of the assets securing the debt. The aggregate maturities of the Operating Partnership’s secured debt due during each of the next ten calendar years subsequent to June 30, 2017 are as follows (dollars in thousands): Fixed Variable Tax-Exempt Secured Credit Secured Notes Year Facilities Payable Total 2017 $ — $ — $ — 2018 — — — 2019 133,204 — 133,204 2020 — — — 2021 — — — 2022 — — — 2023 — — — 2024 — — — 2025 — — — 2026 — — — Thereafter — 27,000 27,000 Subtotal 133,204 27,000 160,204 Non-cash (a) (358) (82) (440) Total $ 132,846 $ 26,918 $ 159,764 (a) Includes the unamortized balance of fair market value adjustments, premiums/discounts, deferred hedge gains, and deferred financing costs. For the three months ended June 30, 2017 and 2016, the Operating Partnership amortized $0.1 million and $0.1 million, respectively, and $0.2 million and $0. 3 million for the six months ended June 30, 2017 and 2016, respectively, of deferred financing costs into Interest expense . Guarantor on Unsecured Debt The Operating Partnership is a guarantor on the General Partner’s unsecured revolving credit facility with an aggregate borrowing capacity of $1.1 billion and unsecured commercial paper program with an aggregate borrowing capacity of $500 million, $300 million of medium-term notes due June 2018, $300 million of medium-term notes due October 2020, a $350 million term loan facility due January 2021, $400 million of medium-term notes due January 2022, $300 million of medium-term notes due July 2024, $300 million of medium-term notes due October 2025, $300 million of medium-term notes due September 2026 and $300 million of medium-term notes due July 2027. As of June 30, 2017 and December 31, 2016, the General Partner did not have an outstanding balance under the unsecured revolving credit facility and had $240.0 million and $0, respectively, outstanding under its unsecured commercial paper program. |
Related Party Transactions (UNI
Related Party Transactions (UNITED DOMINION REALTY, L.P.) | 6 Months Ended |
Jun. 30, 2017 | |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
RELATED PARTY TRANSACTIONS | 6. RELATED PARTY TRANSACTIONS Advances (To)/From the General Partner The Operating Partnership participates in the General Partner’s central cash management program, wherein all the Operating Partnership’s cash receipts are remitted to the General Partner and all cash disbursements are funded by the General Partner. In addition, other miscellaneous costs such as administrative expenses are incurred by the General Partner on behalf of the Operating Partnership. As a result of these various transactions between the Operating Partnership and the General Partner, the Operating Partnership had net Advances (to)/from the General Partner of $311.9 million and $19.7 million at June 30, 2017 and December 31, 2016, respectively, which are reflected as increases/(decreases) of capital on the Consolidated Balance Sheets. Allocation of General and Administrative Expenses The General Partner shares various general and administrative costs, employees and other overhead costs with the Operating Partnership including legal assistance, acquisitions analysis, marketing, human resources, IT, accounting, rent, supplies and advertising, and allocates these costs to the Operating Partnership first on the basis of direct usage when identifiable, with the remainder allocated based on the reasonably anticipated benefits to the parties. The general and administrative expenses allocated to the Operating Partnership by UDR were $3.7 million and $2.9 million during the three months ended June 30, 2017 and 2016, respectively, and $8.2 million and $7.5 million during the six months ended June 30, 2017 and 2016, respectively, and are included in General and administrative on the Consolidated Statements of Operations. In the opinion of management, this method of allocation reflects the level of services received by the Operating Partnership from the General Partner. During the three months ended June 30, 2017 and 2016, the Operating Partnership reimbursed the General Partner $3.6 million and $3.7 million, respectively, and during the six months ended June 30, 2017 and 2016, the Operating Partnership reimbursed the General Partner $7.1 million and $7.3 million, respectively, for shared services related to corporate level property management costs incurred by the General Partner. These shared costs reimbursements and related party management fees are initially recorded within the line item General and administrative on the Consolidated Statements of Operations, and a portion related to management costs is reclassified to Property management on the Consolidated Statements of Operations. (See further discussion below.) Shared Services/Management Fee The Operating Partnership self-manages its own properties and is party to an Inter-Company Employee and Cost Sharing Agreement with the General Partner. This agreement provides for reimbursements to the General Partner for the Operating Partnership’s allocable share of costs incurred by the General Partner for (a) shared services of corporate level property management employees and related support functions and costs, and (b) general and administrative costs. As discussed above, the reimbursement for shared services is classified in Property management on the Consolidated Statements of Operations. Notes Payable to the General Partner As of both June 30, 2017 and December 31, 2016, the Operating Partnership had $273.3 million of unsecured notes payable to the General Partner at annual interest rates between 4.12% and 5.34%. Certain limited partners of the Operating Partnership have provided guarantees or reimbursement agreements related to these notes payable. The guarantees were provided by the limited partners in conjunction with their contribution of properties to the Operating Partnership. The notes mature on August 31, 2021, December 31, 2023 and April 1, 2026, and interest payments are made monthly. The Operating Partnership recognized interest expense on the notes payable of $3.1 million during both the three months ended June 30, 2017 and 2016 and $6.1 million during both the six months ended June 30, 2017 and 2016. |
Fair Value of Derivatives and72
Fair Value of Derivatives and Financial Instruments (UNITED DOMINION REALTY, L.P.) | 6 Months Ended |
Jun. 30, 2017 | |
Entity Information [Line Items] | |
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | 9. FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS Fair value is based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: · Level 1 — Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. · Level 2 — Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. · Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The estimated fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis as of June 30, 2017 and December 31, 2016 are summarized as follows (dollars in thousands) : Fair Value at June 30, 2017, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable June 30, June 30, Liabilities Inputs Inputs 2017 2017 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 17,290 $ 17,286 $ — $ — $ 17,286 Derivatives - Interest rate contracts (b) 4,377 4,377 — 4,377 — Total assets $ 21,667 $ 21,663 $ — $ 4,377 $ 17,286 Secured debt instruments - fixed rate: (c) Mortgage notes payable $ 399,315 $ 396,828 $ — $ — $ 396,828 Fannie Mae credit facilities 285,836 292,860 — — 292,860 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 94,700 94,700 — — 94,700 Fannie Mae credit facilities 29,034 29,034 — — 29,034 Unsecured debt instruments: (c) Working capital credit facility 40,058 40,058 — — 40,058 Commercial paper program 240,000 240,000 — — 240,000 Unsecured notes 2,561,616 2,611,612 — — 2,611,612 Total liabilities $ 3,650,559 $ 3,705,092 $ — $ — $ 3,705,092 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 967,797 $ 967,797 $ — $ 967,797 $ — Fair Value at December 31, 2016, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable December 31, December 31, Liabilities Inputs Inputs 2016 2016 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 19,790 $ 19,645 $ — $ — $ 19,645 Derivatives - Interest rate contracts (b) 4,360 4,360 — 4,360 — Total assets $ 24,150 $ 24,005 $ — $ 4,360 $ 19,645 Derivatives- Interest rate contracts (b) $ 413 $ 413 $ — $ 413 $ — Secured debt instruments - fixed rate: (c) Mortgage notes payable 402,996 396,045 — — 396,045 Fannie Mae credit facilities 355,836 365,693 — — 365,693 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 94,700 94,700 — — 94,700 Fannie Mae credit facilities 280,946 280,946 — — 280,946 Unsecured debt instruments: (c) Working capital credit facility 21,350 21,350 — — 21,350 Unsecured notes 2,261,838 2,304,492 — — 2,304,492 Total liabilities $ 3,418,079 $ 3,463,639 $ — $ 413 $ 3,463,226 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 909,482 $ 909,482 $ — $ 909,482 $ — (a) See Note 2, Significant Accounting Policies . (b) See Note 10, Derivatives and Hedging Activity . (c) See Note 6, Secured Debt and Unsecured Debt, Net . (d) See Note 8, Noncontrolling Interests . There were no transfers into or out of any of the levels of the fair value hierarchy during the six months ended June 30, 2017. Financial Instruments Carried at Fair Value The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair values of interest rate options are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2017 and December 31, 2016, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. In conjunction with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership have a redemption feature and are marked to their redemption value. The redemption value is based on the fair value of the Company’s common stock at the redemption date, and therefore, is calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership are classified as Level 2. Financial Instruments Not Carried at Fair Value At June 30, 2017 and December 31, 2016, the fair values of cash and cash equivalents, restricted cash, accounts receivable, prepaids, real estate taxes payable, accrued interest payable, security deposits and prepaid rent, distributions payable and accounts payable approximated their carrying values because of the short term nature of these instruments. The estimated fair values of other financial instruments were determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company would realize on the disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts. We estimate the fair value of our notes receivable and debt instruments by discounting the remaining cash flows of the debt instrument at a discount rate equal to the replacement market credit spread plus the corresponding treasury yields. Factors considered in determining a replacement market credit spread include general market conditions, borrower specific credit spreads, time remaining to maturity, loan-to-value ratios and collateral quality, where applicable (Level 3). We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by the future operation and disposition of those assets are less than the net book value of those assets. Our cash flow estimates are based upon historical results adjusted to reflect our best estimate of future market and operating conditions and our estimated holding periods. The net book value of impaired assets is reduced to fair value. Our estimates of fair value represent our best estimate based upon Level 3 inputs such as industry trends and reference to market rates and transactions. We consider various factors to determine if a decrease in the value of our investment in and advances to unconsolidated joint ventures, net is other-than-temporary. These factors include, but are not limited to, age of the venture, our intent and ability to retain our investment in the entity, the financial condition and long-term prospects of the entity, and the relationships with the other joint venture partners and its lenders. Based on the significance of the unobservable inputs, we classify these fair value measurements within Level 3 of the valuation hierarchy. The Company did not incur any other-than-temporary decrease in the value of its investments in unconsolidated joint ventures during the three and six months ended June 30, 2017 and 2016. After determining an other-than-temporary decrease in the value of an equity method investment has occurred, we estimate the fair value of our investment by estimating the proceeds we would receive upon a hypothetical liquidation of the investment at the date of measurement. Inputs reflect management’s best estimate of what market participants would use in pricing the investment giving consideration to the terms of the joint venture agreement and the estimated discounted future cash flows to be generated from the underlying joint venture assets. The inputs and assumptions utilized to estimate the future cash flows of the underlying assets are based upon the Company’s evaluation of the economy, market trends, operating results, and other factors, including judgments regarding costs to complete any construction activities, lease up and occupancy rates, rental rates, inflation rates, capitalization rates utilized to estimate the projected cash flows at the disposition, and discount rates. |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | 7. FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS Fair value is based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: · Level 1 — Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. · Level 2 — Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. · Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The estimated fair values of the Operating Partnership’s financial instruments either recorded or disclosed on a recurring basis as of June 30, 2017 and December 31, 2016 are summarized as follows (dollars in thousands) : Fair Value at June 30, 2017, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable June 30, June 30, Liabilities Inputs Inputs 2017 2017 (Level 1) (Level 2) (Level 3) Description: Secured debt instruments - fixed rate: (a) Fannie Mae credit facilities $ 133,204 $ 137,739 $ — $ — $ 137,739 Secured debt instruments - variable rate: (a) Tax-exempt secured notes payable 27,000 27,000 — — 27,000 Total liabilities $ 160,204 $ 164,739 $ — $ — $ 164,739 Fair Value at December 31, 2016, Using Quoted Total Prices in Carrying Active Amount in Markets Statement of for Identical Significant Financial Fair Value Assets Other Significant Position at Estimate at or Observable Unobservable December 31, December 31, Liabilities Inputs Inputs 2016 2016 (Level 1) (Level 2) (Level 3) Description: Derivatives - Interest rate contracts (b) $ 1 $ 1 $ — $ 1 $ — Total assets $ 1 $ 1 $ — $ 1 $ — Secured debt instruments - fixed rate: (a) Fannie Mae credit facilities $ 244,912 $ 251,664 $ — $ — $ 251,664 Secured debt instruments - variable rate: (a) — Tax-exempt secured notes payable 27,000 27,000 — — 27,000 Fannie Mae credit facilities 163,637 163,637 — — 163,637 Total liabilities $ 435,549 $ 442,301 $ — $ — $ 442,301 (a) See Note 5, Debt, Net. (b) See Note 8, Derivatives and Hedging Activity. There were no transfers into or out of any of the levels of the fair value hierarchy during the six months ended June 30, 2017. Financial Instruments Carried at Fair Value The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair values of interest rate options are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The General Partner, on behalf of the Operating Partnership, incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Operating Partnership has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the General Partner, on behalf of the Operating Partnership, has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2017 and December 31, 2016, the Operating Partnership has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Operating Partnership has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. In conjunction with the FASB’s fair value measurement guidance, the Operating Partnership made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Financial Instruments Not Carried at Fair Value As of June 30, 2017, the fair values of cash and cash equivalents, restricted cash, accounts receivable, prepaids, real estate taxes payable, accrued interest payable, security deposits and prepaid rent, distributions payable and accounts payable approximated their carrying values because of the short term nature of these instruments. The estimated fair values of other financial instruments were determined by the General Partner using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Operating Partnership would realize on the disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts. The General Partner estimates the fair value of our debt instruments by discounting the remaining cash flows of the debt instrument at a discount rate equal to the replacement market credit spread plus the corresponding treasury yields. Factors considered in determining a replacement market credit spread include general market conditions, borrower specific credit spreads, time remaining to maturity, loan-to-value ratios and collateral quality (Level 3). The Operating Partnership records impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by the future operation and disposition of those assets are less than the net book value of those assets. Cash flow estimates are based upon historical results adjusted to reflect management’s best estimate of future market and operating conditions and our estimated holding periods. The net book value of impaired assets is reduced to fair value. The General Partner’s estimates of fair value represent management’s estimates based upon Level 3 inputs such as industry trends and reference to market rates and transactions. The Operating Partnership did not incur any other-than-temporary decrease in the value of its investments in unconsolidated entities during the three and six months ended June 30, 2017 and 2016. |
Derivatives and Hedging Activ73
Derivatives and Hedging Activity (UNITED DOMINION REALTY, L.P.) | 6 Months Ended |
Jun. 30, 2017 | |
Entity Information [Line Items] | |
DERIVATIVES AND HEDGING ACTIVITY | 10. DERIVATIVES AND HEDGING ACTIVITY Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated other comprehensive income/(loss), net in the Consolidated Balance Sheets and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended June 30, 2017 and 2016, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and six months ended June 30, 2017, the Company recognized a loss of $0.1 million reclassified from Accumulated OCI to Interest expense due to the de-designation of cash flow hedges and recorded no other ineffectiveness to earnings. During the three and six months ended June 30, 2016, the Company recorded no ineffectiveness to earnings. Amounts reported in Accumulated other comprehensive income/(loss), net in the Consolidated Balance Sheets related to derivatives that will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. Through June 30, 2018, the Company estimates that an additional $0.1 million will be reclassified as an increase to interest expense. As of June 30, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk ( dollars in thousands ): Number of Product Instruments Notional Interest rate swaps 4 $ 315,000 Interest rate caps 1 $ 65,197 Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in a loss of less than $0.1 million for the three and six months ended June 30, 2017 and 2016. As of June 30, 2017, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships ( dollars in thousands ): Number of Product Instruments Notional Interest rate caps 3 $ 271,076 Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016 ( dollars in thousands ): Asset Derivatives Liability Derivatives (included in Other assets ) (included in Other liabilities ) Fair Value at: Fair Value at: June 30, December 31, June 30, December 31, 2017 2016 2017 2016 Derivatives designated as hedging instruments: Interest rate products $ 4,377 $ 4,359 $ — $ 413 Derivatives not designated as hedging instruments: Interest rate products $ — $ 1 $ — $ — Tabular Disclosure of the Effect of Derivative Instruments on the Consolidated Statements of Operations The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016 ( dollars in thousands ): Gain/(Loss) Recognized in Gain/(Loss) Reclassified Interest expense Unrealized holding gain/(loss) from Accumulated OCI into (Ineffective Portion and Recognized in OCI Interest expense Amount Excluded from (Effective Portion) (Effective Portion) Effectiveness Testing) Derivatives in Cash Flow Hedging Relationships 2017 2016 2017 2016 2017 2016 Three Months Ended June 30, Interest rate products $ (507) $ (1,963) $ (308) $ (943) $ (82) $ — Six Months Ended June 30, Interest rate products $ 126 $ (2,774) $ (1,073) $ (1,878) $ (136) $ — Gain/(Loss) Recognized in Interest income and other income/(expense), net Derivatives Not Designated as Hedging Instruments 2017 2016 Three Months Ended June 30, Interest rate products $ — $ (3) Six Months Ended June 30, Interest rate products $ (1) $ (3) Credit-risk-related Contingent Features The Company has agreements with some of its derivative counterparties that contain a provision where (1) if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations; or (2) the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. Certain of the Company’s agreements with its derivative counterparties contain provisions where, if there is a change in the Company’s financial condition that materially changes the Company’s creditworthiness in an adverse manner, the Company may be required to fully collateralize its obligations under the derivative instrument. At June 30, 2017 and December 31, 2016, no cash collateral was posted or required to be posted by the Company or by a counterparty. The Company also has an agreement with a derivative counterparty that incorporates the loan and financial covenant provisions of the Company’s indebtedness with a lender affiliate of the derivative counterparty. Failure to comply with these covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the applicable agreement. The Company has certain agreements with some of its derivative counterparties that contain a provision where, in the event of default by the Company or the counterparty, the right of setoff may be exercised. Any amount payable to one party by the other party may be reduced by its setoff against any amounts payable by the other party. Events that give rise to default by either party may include, but are not limited to, the failure to pay or deliver payment under the derivative agreement, the failure to comply with or perform under the derivative agreement, bankruptcy, a merger without assumption of the derivative agreement, or in a merger, a surviving entity’s creditworthiness is materially weaker than the original party to the derivative agreement. As of June 30, 2017, the fair value of derivatives was in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, of $4.4 million. As of June 30, 2017, the Company has not posted any collateral related to these agreements. Tabular Disclosure of Offsetting Derivatives The Company has elected not to offset derivative positions in the consolidated financial statements. The tables below present the effect on its financial position had the Company made the election to offset its derivative positions as of June 30, 2017 and December 31, 2016 (dollars in thousands): Gross Net Amounts of Gross Amounts Not Offset Amounts Assets in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Assets Assets Sheets (a) Instruments Received Net Amount June 30, 2017 $ 4,377 $ — $ 4,377 $ — $ — $ 4,377 December 31, 2016 $ 4,360 $ — $ 4,360 $ (221) $ — $ 4,139 (a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. Gross Net Amounts of Gross Amounts Not Offset Amounts Liabilities in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Liabilities Liabilities Sheets (a) Instruments Posted Net Amount June 30, 2017 $ — $ — $ — $ — $ — $ — December 31, 2016 $ 413 $ — $ 413 $ (221) $ — $ 192 (a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote . |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
DERIVATIVES AND HEDGING ACTIVITY | 8. DERIVATIVES AND HEDGING ACTIVITY Risk Management Objective of Using Derivatives The Operating Partnership is exposed to certain risks arising from both its business operations and economic conditions. The General Partner principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The General Partner manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the General Partner enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The General Partner’s and the Operating Partnership’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the General Partner’s known or expected cash payments principally related to the General Partner’s borrowings. Cash Flow Hedges of Interest Rate Risk The General Partner’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the General Partner primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the General Partner making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up front premium. A portion of the General Partner’s interest rate derivatives are owed by the Operating Partnership based on the General Partner’s underlying debt instruments owed by the Operating Partnership. (See Note 5, Debt, Net. ) The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated other comprehensive income/(loss), net in the Consolidated Balance Sheets and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three and six months ended June 30, 2017 and 2016, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and six months ended June 30, 2017, the Operating Partnership recognized a loss of less than $0.1 million reclassified from Accumulated other comprehensive income/(loss), net to Interest expense due to the de-designation of a cash flow hedge and recorded no other ineffectiveness to earnings. During the three and six months ended June 30, 2016, the Operating Partnership recorded no gain or loss from ineffectiveness. Amounts reported in Accumulated other comprehensive income/(loss), net related to derivatives will be reclassified to interest expense as interest payments are made on the General Partner’s variable-rate debt that is owed by the Operating Partnership. As of June 30, 2017, no derivatives designated as cash flow hedges were held by the Operating Partnership. As a result, through June 30, 2018, we estimate that no amounts will be reclassified as an increase to interest expense. Derivatives not designated as hedges are not speculative and are used to manage the Operating Partnership’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in an adjustment to earnings of less than $0.1 million for the three and six months ended June 30, 2017 and 2016. As of June 30, 2017, we had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships ( dollars in thousands ): Number of Product Instruments Notional Interest rate caps 3 $ 170,074 Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets The table below presents the fair value of the Operating Partnership’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016 ( dollars in thousands ): Asset Derivatives Liability Derivatives (included in Other assets) (Included in Other liabilities) Fair Value at: Fair Value at: June 30, December 31, June 30, December 31, 2017 2016 2017 2016 Derivatives not designated as hedging instruments: Interest rate products $ — $ 1 $ — $ — Tabular Disclosure of the Effect of Derivative Instruments on the Consolidated Statements of Operations The tables below present the effect of the derivative financial instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016 ( dollars in thousands ): Gain/(Loss) Recognized Unrealized holding Gain/(Loss) Reclassified in Interest expense gain/(loss) Recognized in from Accumulated OCI into (Ineffective Portion and OCI Interest expense Amount Excluded from (Effective Portion) (Effective Portion) Effectiveness Testing) Derivatives in Cash Flow Hedging Relationships 2017 2016 2017 2016 2017 2016 Three Months Ended June 30, Interest rate products $ — $ (1) $ — $ (2) $ (52) $ — Six Months Ended June 30, Interest rate products $ — $ (3) $ — $ (3) $ (106) $ — Gain/(Loss) Recognized in Interest income and other income/(expense), net Derivatives Not Designated as Hedging Instruments 2017 2016 Three Months Ended June 30, Interest rate products $ — $ (3) Six Months Ended June 30, Interest rate products $ (1) $ (3) Credit-risk-related Contingent Features The General Partner has agreements with some of its derivative counterparties that contain a provision where (1) if the General Partner defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the General Partner could also be declared in default on its derivative obligations; or (2) the General Partner could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the General Partner’s default on the indebtedness. Certain of the General Partner’s agreements with its derivative counterparties contain provisions where if there is a change in the General Partner’s financial condition that materially changes the General Partner’s creditworthiness in an adverse manner, the General Partner may be required to fully collateralize its obligations under the derivative instrument. At June 30, 2017 and December 31, 2016, no cash collateral was posted or required to be posted by the General Partner or by a counterparty. The General Partner also has an agreement with a derivative counterparty that incorporates the loan and financial covenant provisions of the General Partner’s indebtedness with a lender affiliate of the derivative counterparty. Failure to comply with these covenant provisions would result in the General Partner being in default on any derivative instrument obligations covered by the agreement. The General Partner has certain agreements with some of its derivative counterparties that contain a provision where in the event of default by the General Partner or the counterparty, the right of setoff may be exercised. Any amount payable to one party by the other party may be reduced by its setoff against any amounts payable by the other party. Events that give rise to default by either party may include, but are not limited to, the failure to pay or deliver payment under the derivative agreement, the failure to comply with or perform under the derivative agreement, bankruptcy, a merger without assumption of the derivative agreement, or in a merger, a surviving entity’s creditworthiness is materially weaker than the original party to the derivative agreement. As of June 30, 2017, the fair value of derivatives was in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements, of less than $0.1 million. As of June 30, 2017, the General Partner has not posted any collateral related to these agreements. The General Partner has elected not to offset derivative positions in the consolidated financial statements. The table below presents the effect on the Operating Partnership’s financial position had the General Partner made the election to offset its derivative positions as of June 30, 2017 and December 31, 2016: Gross Gross Amounts Not Offset Amounts Net Amounts of in the Consolidated Gross Offset in the Assets Balance Sheets Amounts of Consolidated Presented in the Cash Recognized Balance Consolidated Financial Collateral Assets Sheets Balance Sheets (a) Instruments Received Net Amount June 30, 2017 $ — — — $ — $ — $ — December 31, 2016 $ 1 $ — $ 1 $ — $ — $ 1 (a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. Gross Gross Amounts Not Offset Amounts Net Amounts of in the Consolidated Gross Offset in the Liabilities Balance Sheets Amounts of Consolidated Presented in the Cash Recognized Balance Consolidated Financial Collateral Liabilities Sheets Balance Sheets (a) Instruments Posted Net Amount June 30, 2017 $ — $ — $ — $ — $ — $ — December 31, 2016 $ — $ — $ — $ — $ — $ — (a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
Capital Structure (UNITED DOMIN
Capital Structure (UNITED DOMINION REALTY, L.P.) | 6 Months Ended |
Jun. 30, 2017 | |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
CAPITAL STRUCTURE | 9. CAPITAL STRUCTURE General Partnership Units The General Partner has complete discretion to manage and control the operations and business of the Operating Partnership, which includes but is not limited to the acquisition and disposition of real property, construction of buildings and making capital improvements, and the borrowing of funds from outside lenders or UDR and its subsidiaries to finance such activities. The General Partner can generally authorize, issue, sell, redeem or purchase any OP Unit or securities of the Operating Partnership without the approval of the limited partners. The General Partner can also approve, with regard to the issuances of OP Units, the class or one or more series of classes, with designations, preferences, participating, optional or other special rights, powers and duties including rights, powers and duties senior to limited partnership interests without approval of any limited partners except holders of Class A Limited Partnership Units. There were 110,883 General Partnership units outstanding at June 30, 2017 and December 31, 2016, all of which were held by UDR. Limited Partnership Units As of June 30, 2017 and December 31, 2016, there were 183,240,041 and 183,167,815, respectively, of limited partnership units outstanding, of which 1,873,332 were Class A Limited Partnership Units. UDR owned 174,122,808, or 95.0%, and 174,119,201, or 95.1%, of OP Units outstanding at June 30, 2017 and December 31, 2016, respectively, of which 121,661 were Class A Limited Partnership Units. The remaining 9,117,233, or 5.0%, and 9,048,614, or 4.9%, of OP Units outstanding were held by non-affiliated partners at June 30, 2017 and December 31, 2016, respectively, of which 1,751,671 were Class A Limited Partnership Units. Subject to the terms of the Operating Partnership Agreement, the limited partners have the right to require the Operating Partnership to redeem all or a portion of the OP Units held by the limited partner at a redemption price equal to and in the form of the Cash Amount (as defined in the Operating Partnership Agreement), provided that such OP Units have been outstanding for at least one year. UDR, as general partner of the Operating Partnership, may, in its sole discretion, purchase the OP Units by paying to the limited partner either the Cash Amount or the REIT Share Amount (generally one share of common stock of UDR for each OP Unit), as defined in the Operating Partnership Agreement. The non-affiliated limited partners’ capital is adjusted to redemption value at the end of each reporting period with the corresponding offset against UDR’s limited partner capital account based on the redemption rights noted above. The aggregate value upon redemption of the then-outstanding OP Units held by limited partners was $355.3 million and $330.1 million as of June 30, 2017 and December 31, 2016, respectively, based on the value of UDR’s common stock at each period end. A limited partner has no right to receive any distributions from the Operating Partnership on or after the date of redemption of its OP Units. Class A Limited Partnership Units Class A Limited Partnership Units have a cumulative, annual, non-compounded preferred return, which is equal to 8% based on a value of $16.61 per Class A Limited Partnership Unit. Holders of the Class A Limited Partnership Units exclusively possess certain voting rights. The Operating Partnership may not do the following without approval of the holders of the Class A Limited Partnership Units: (i) increase the authorized or issued amount of Class A Limited Partnership Units, (ii) reclassify any other partnership interest into Class A Limited Partnership Units, (iii) create, authorize or issue any obligations or security convertible into or the right to purchase Class A Limited Partnership Units, (iv) enter into a merger or acquisition, or (v) amend or modify the Operating Partnership Agreement in a manner that adversely affects the relative rights, preferences or privileges of the Class A Limited Partnership Units. The following table shows OP Units outstanding and OP Unit activity as of and for the six months ended June 30, 2017: UDR, Inc. Class A Class A Limited Limited Limited Limited General Partners Partners Partner Partner Partner Total Ending balance at December 31, 2016 1,751,671 7,296,943 173,997,540 121,661 110,883 183,278,698 Vesting of LTIP Units — 72,226 — — — 72,226 OP redemptions for UDR stock — (3,607) 3,607 — — — Ending balance at June 30, 2017 1,751,671 7,365,562 174,001,147 121,661 110,883 183,350,924 LTIP Units UDR grants long-term incentive plan units ("LTIP Units") to certain employees and non-employee directors. The LTIP Units represent an ownership interest in the Operating Partnership and have voting and distribution rights consistent with OP Units. The LTIP Units are subject to the terms of UDR’s long-term incentive plan. Two classes of LTIP Units are granted, Class 1 LTIP Units and Class 2 LTIP Units. Class 1 LTIP Units are granted to non-employee directors and vest after one year. Class 2 LTIP Units are granted to certain employees and vest over a period from one to three years subject to certain performance and market conditions being achieved. Vested LTIP Units may be converted into OP Units provided that such LTIP Units have been outstanding for at least two years from the date of grant. Allocation of Profits and Losses Profit of the Operating Partnership is allocated in the following order: (i) to the General Partner and the Limited Partners in proportion to and up to the amount of cash distributions made during the year, and (ii) to the General Partner and Limited Partners in accordance with their percentage interests. Losses and depreciation and amortization expenses, non-recourse liabilities are allocated to the General Partner and Limited Partners in accordance with their percentage interests. Losses allocated to the Limited Partners are capped to the extent that such an allocation would not cause a deficit in the Limited Partners’ capital account. Such losses are, therefore, allocated to the General Partner. If any Partner’s capital balance were to fall into a deficit, any income and gains are allocated to each Partner sufficient to eliminate its negative capital balance. |
Commitments and Contingencies75
Commitments and Contingencies (UNITED DOMINION REALTY, L.P.) Commitments and Contingencies (UNITED DOMINION REALTY, L.P.) | 6 Months Ended |
Jun. 30, 2017 | |
Entity Information [Line Items] | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES Commitments Real Estate Under Development The following summarizes the Company’s real estate commitments at June 30, 2017 ( dollars in thousands ): Expected Average Number of Costs Incurred to Costs Ownership Properties Date (a) to Complete Stake Wholly-owned — under development 2 $ 465,729 (b) $ 242,771 100 % Wholly-owned — redevelopment 1 6,171 (b) 3,329 100 % Joint ventures: Unconsolidated joint ventures 5 430,918 52,257 (c) 50 % Participating loan investments 1 93,984 (d) — — % Preferred equity investments 4 64,532 (e) 18,247 (f) 48 % (g) Other investments 1 10,560 27,999 (h) — % Total $ 1,071,894 $ 344,603 (a) Represents 100% of project costs incurred as of June 30, 2017. (b) Costs incurred as of June 30, 2017 include $ 36.7 million and $ 2.2 million of accrued fixed assets for development and redevelopment, respectively. (c) Represents UDR’s proportionate share of expected remaining costs to complete the developments. (d) Represents the participating loan balance funded as of June 30, 2017. (e) Represents UDR’s investment in the West Coast Development Joint Ventures and 1532 Harrison for the properties under development as of June 30, 2017. (f) Represents UDR’s remaining commitment for 1532 Harrison. (g) Represents UDR’s average ownership stake in the West Coast Development Joint Ventures only and does not include UDR’s preferred equity interest in 1532 Harrison. (h) Represents UDR’s remaining commitment for The Portals. Contingencies Litigation and Legal Matters The Company is subject to various legal proceedings and claims arising in the ordinary course of business. The Company cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The Company believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on our financial condition, results of operations or cash flow. |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Contingencies Litigation and Legal Matters The Operating Partnership is subject to various legal proceedings and claims arising in the ordinary course of business. The Operating Partnership cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The General Partner believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on the Operating Partnership’s financial condition, results of operations or cash flow. |
Reportable Segments (UNITED DOM
Reportable Segments (UNITED DOMINION REALTY, L.P.) | 6 Months Ended |
Jun. 30, 2017 | |
REPORTABLE SEGMENTS | 13. REPORTABLE SEGMENTS GAAP guidance requires that segment disclosures present the measure(s) used by the chief operating decision maker to decide how to allocate resources and for purposes of assessing such segments’ performance. UDR’s chief operating decision maker is comprised of several members of its executive management team who use several generally accepted industry financial measures to assess the performance of the business for our reportable operating segments. UDR owns and operates multifamily apartment communities that generate rental and other property related income through the leasing of apartment homes to a diverse base of tenants. The primary financial measures for UDR’s apartment communities are rental income and net operating income (“NOI”). Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. NOI is defined as rental income less direct property rental expenses. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI is property management expense, which is calculated as 2.75% of property revenue to cover the regional supervision and accounting costs related to consolidated property operations, and land rent. UDR’s chief operating decision maker utilizes NOI as the key measure of segment profit or loss. UDR’s two reportable segments are Same-Store Communities and Non-Mature Communities/Other : · Same-Store Communities represent those communities acquired, developed, and stabilized prior to April 1, 2016 (for quarter-to-date comparison) and January 1, 2016 (for year-to-date comparison) and held as of June 30, 2017. A comparison of operating results from the prior year is meaningful as these communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior period, there is no plan to conduct substantial redevelopment activities, and the community is not held for disposition within the current year. A community is considered to have stabilized occupancy once it achieves 90% occupancy for at least three consecutive months. · Non-Mature Communities/Other represent those communities that do not meet the criteria to be included in Same-Store Communities , including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed use properties. Management evaluates the performance of each of our apartment communities on a Same-Store Community and Non-Mature Community/Other basis, as well as individually and geographically. This is consistent with the aggregation criteria under GAAP as each of our apartment communities generally has similar economic characteristics, facilities, services, and tenants. Therefore, the Company’s reportable segments have been aggregated by geography in a manner identical to that which is provided to the chief operating decision maker. All revenues are from external customers and no single tenant or related group of tenants contributed 10% or more of UDR’s total revenues during the three and six months ended June 30, 2017 and 2016. The following table details rental income and NOI for UDR’s reportable segments for the three and six months ended June 30, 2017 and 2016, and reconciles NOI to Net Income/(Loss) Attributable to UDR, Inc. in the Consolidated Statements of Operations (dollars in thousands) : Three Months Ended Six Months Ended June 30, (a) June 30, (b) 2017 2016 2017 2016 Reportable apartment home segment rental income Same-Store Communities West Region $ 83,222 $ 79,566 $ 165,442 $ 157,973 Mid-Atlantic Region 57,199 55,586 104,620 101,288 Northeast Region 37,732 36,749 75,653 73,209 Southeast Region 29,149 27,702 57,806 54,839 Southwest Region 10,685 10,237 21,365 20,363 Non-Mature Communities/Other 26,671 26,328 61,043 60,453 Total segment and consolidated rental income $ 244,658 $ 236,168 $ 485,929 $ 468,125 Reportable apartment home segment NOI Same-Store Communities West Region $ 62,658 $ 58,819 $ 124,552 $ 117,963 Mid-Atlantic Region 40,106 39,039 72,928 69,450 Northeast Region 27,151 26,983 54,052 53,343 Southeast Region 20,059 19,081 39,720 37,877 Southwest Region 6,613 6,344 13,293 12,676 Non-Mature Communities/Other 18,036 17,049 41,561 40,140 Total segment and consolidated NOI 174,623 167,315 346,106 331,449 Reconciling items: Joint venture management and other fees 3,321 2,618 5,891 5,476 Property management (6,728) (6,494) (13,363) (12,873) Other operating expenses (2,369) (1,892) (4,060) (3,644) Real estate depreciation and amortization (108,450) (105,937) (213,482) (211,276) General and administrative (11,434) (10,835) (24,509) (24,679) Casualty-related (charges)/recoveries, net (1,191) (1,629) (1,693) (1,629) Other depreciation and amortization (1,567) (1,486) (3,175) (3,039) Income/(loss) from unconsolidated entities (1,426) 325 9,772 1,004 Interest expense (33,866) (30,678) (64,405) (61,782) Interest income and other income/(expense), net 515 540 942 971 Tax (provision)/benefit, net (366) 402 (698) 805 Gain/(loss) on sale of real estate owned, net of tax — 7,315 2,132 10,385 Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (854) (1,610) (3,192) (2,515) Net (income)/loss attributable to noncontrolling interests (51) (8) (142) (314) Net income/(loss) attributable to UDR, Inc. $ 10,157 $ 17,946 $ 36,124 $ 28,339 (a) Same-Store Community population consisted of 36,540 apartment homes. (b) Same-Store Community population consisted of 35,689 apartment homes. The following table details the assets of UDR’s reportable segments as of June 30, 2017 and December 31, 2016 (dollars in thousands) : June 30, December 31, 2017 2016 Reportable apartment home segment assets: Same-Store Communities: West Region $ 2,954,555 $ 2,938,073 Mid-Atlantic Region 2,434,358 2,427,948 Northeast Region 1,860,934 1,857,193 Southeast Region 752,902 746,762 Southwest Region 286,145 283,260 Non-Mature Communities/Other 1,600,026 1,362,517 Total segment assets 9,888,920 9,615,753 Accumulated depreciation (3,132,031) (2,923,625) Total segment assets — net book value 6,756,889 6,692,128 Reconciling items: Cash and cash equivalents 1,411 2,112 Restricted cash 19,602 19,994 Notes receivable, net 17,290 19,790 Investment in and advances to unconsolidated joint ventures, net 843,167 827,025 Other assets 129,575 118,535 Total consolidated assets $ 7,767,934 $ 7,679,584 Capital expenditures related to our Same-Store Communities totaled $23.6 million and $23.6 million for the three months ended June 30, 2017 and 2016, respectively, and $38.9 million and $36.5 million for the six months ended June 30, 2017 and 2016, respectively. Capital expenditures related to our Non-Mature Communities/Other totaled $1.4 million and $2.3 million for the three months ended June 30, 2017 and 2016, respectively, and $2.2 million and $5.0 million for the six months ended June 30, 2017 and 2016, respectively. Markets included in the above geographic segments are as follows: i. West Region — San Francisco, Orange County, Seattle, Los Angeles, Monterey Peninsula, Other Southern California and Portland ii. Mid-Atlantic Region — Metropolitan D.C., Richmond and Baltimore iii. Northeast Region — New York and Boston iv. Southeast Region — Orlando, Tampa, Nashville and Other Florida v. Southwest Region — Dallas and Austin |
United Dominion Reality, L.P. | |
REPORTABLE SEGMENTS | 11. REPORTABLE SEGMENTS GAAP guidance requires that segment disclosures present the measure(s) used by the chief operating decision maker to decide how to allocate resources and for purposes of assessing such segments’ performance. The Operating Partnership has the same chief operating decision maker as that of its parent, the General Partner. The chief operating decision maker consists of several members of UDR’s executive management team who use several generally accepted industry financial measures to assess the performance of the business for our reportable operating segments. The Operating Partnership owns and operates multifamily apartment communities throughout the United States that generate rental and other property related income through the leasing of apartment homes to a diverse base of tenants. The primary financial measures of the Operating Partnership’s apartment communities are rental income and net operating income ("NOI"), and are included in the chief operating decision maker’s assessment of the Operating Partnership’s performance on a consolidated basis. Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. NOI is defined as total revenues less direct property operating expenses. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI are property management costs, which are the Operating Partnership’s allocable share of costs incurred by the General Partner for shared services of corporate level property management employees and related support functions and costs. The chief operating decision maker of the General Partner utilizes NOI as the key measure of segment profit or loss. The Operating Partnership’s two reportable segments are Same-Store Communities and Non-Mature Communities/Other: · Same-Store Communities represent those communities acquired, developed, and stabilized prior to April 1, 2016 (for quarter-to-date comparison) and January 1, 2016 (for the year-to-date comparison) and held as of June 30, 2017. A comparison of operating results from the prior year is meaningful as these communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior period, there is no plan to conduct substantial redevelopment activities, and the community is not held for disposition within the current year. A community is considered to have stabilized occupancy once it achieves 90% occupancy for at least three consecutive months. · Non-Mature Communities/Other represent those communities that do not meet the criteria to be included in Same-Store Communities , including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed use properties. Management of the General Partner evaluates the performance of each of the Operating Partnership’s apartment communities on a Same-Store Community and Non-Mature Community/Other basis, as well as individually and geographically. This is consistent with the aggregation criteria under GAAP as each of our apartment communities generally has similar economic characteristics, facilities, services, and tenants. Therefore, the Operating Partnership’s reportable segments have been aggregated by geography in a manner identical to that which is provided to the chief operating decision maker. All revenues are from external customers and no single tenant or related group of tenants contributed 10% or more of the Operating Partnership’s total revenues during the three and six months ended June 30, 2017 and 2016. The following table details rental income and NOI for the Operating Partnership’s reportable segments for the three and six months ended June 30, 2017 and 2016, and reconciles NOI to Net income/(loss) attributable to OP unitholders in the Consolidated Statements of Operations (dollars in thousands) : Three Months Ended Six Months Ended June 30, (a) June 30, (b) 2017 2016 2017 2016 Reportable apartment home segment rental income Same-Store Communities West Region $ 51,267 $ 48,604 $ 101,748 $ 96,239 Mid-Atlantic Region 14,798 14,407 29,546 28,574 Northeast Region 13,545 13,203 27,104 26,209 Southeast Region 12,452 11,918 24,723 23,615 Non-Mature Communities/Other 12,026 12,760 23,572 25,041 Total segment and consolidated rental income $ 104,088 $ 100,892 $ 206,693 $ 199,678 Reportable apartment home segment NOI Same-Store Communities West Region $ 38,961 $ 36,787 $ 77,406 $ 72,946 Mid-Atlantic Region 10,134 9,887 20,229 19,249 Northeast Region 10,473 10,407 20,604 20,463 Southeast Region 8,544 8,165 16,827 16,208 Non-Mature Communities/Other 8,902 9,412 17,011 18,344 Total segment and consolidated NOI 77,014 74,658 152,077 147,210 Reconciling items: Property management (2,862) (2,775) (5,684) (5,492) Other operating expenses (2,128) (1,519) (3,676) (3,019) Real estate depreciation and amortization (39,231) (37,053) (76,110) (73,844) General and administrative (4,408) (3,844) (9,627) (9,265) Casualty-related recoveries/(charges), net (1,191) (465) (1,744) (465) Income/(loss) from unconsolidated entities (4,350) (10,030) (9,774) (23,417) Interest expense (11,652) (7,578) (20,263) (15,183) Net (income)/loss attributable to noncontrolling interests (343) (350) (693) (694) Net income/(loss) attributable to OP unitholders $ 10,849 $ 11,044 $ 24,506 $ 15,831 (a) Same-Store Community population consisted of 15,058 apartment homes. (b) Same-Store Community population consisted of 15,058 apartment homes. The following table details the assets of the Operating Partnership’s reportable segments as of June 30, 2017 and December 31, 2016 (dollars in thousands) : June 30, December 31, 2017 2016 Reportable apartment home segment assets Same-Store Communities West Region $ 1,608,744 $ 1,596,815 Mid-Atlantic Region 652,533 655,693 Northeast Region 676,258 674,928 Southeast Region 329,987 328,729 Non-Mature Communities/Other 427,201 418,539 Total segment assets 3,694,723 3,674,704 Accumulated depreciation (1,482,993) (1,408,815) Total segment assets - net book value 2,211,730 2,265,889 Reconciling items: Cash and cash equivalents 85 756 Restricted cash 12,210 11,694 Investment in unconsolidated entities 94,741 112,867 Other assets 30,523 24,329 Total consolidated assets $ 2,349,289 $ 2,415,535 Capital expenditures related to the Operating Partnership’s Same-Store Communities totaled $11.6 million and $11.7 million for the three months ended June 30, 2017 and 2016, respectively, and $19.6 million and $17.0 million for the six months ended June 30, 2017 and 2016, respectively. Capital expenditures related to the Operating Partnership’s Non-Mature Communities/Other totaled $0.6 million and $0.4 million for the three months ended June 30, 2017 and 2016, respectively, and $1.0 million and $0.7 million for the six months ended June 30, 2017 and 2016, respectively. Markets included in the above geographic segments are as follows: i. West Region — San Francisco, Orange County, Seattle, Los Angeles, Monterey Peninsula, Other Southern California and Portland ii. Mid-Atlantic Region — Metropolitan, D.C. and Baltimore iii. Northeast Region — New York and Boston iv. Southeast Region — Tampa, Nashville and Other Florida |
Significant Accounting Polici77
Significant Accounting Policies (UNITED DOMINION REALTY, L.P.) (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Entity Information [Line Items] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017‑01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The ASU changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for the Company on January 1, 2018; early adoption is permitted. The ASU will be applied prospectively to any transactions occurring within the period of adoption. The Company expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In November 2016, the FASB issued ASU 2016‑18, Statement of Cash Flows (Topic 230), Restricted Cash . The ASU addresses the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments . The ASU addresses specific cash flow items with the objective of reducing existing diversity in practice, including the treatment of distributions received from equity method investees. The updated standard will be effective for the Company on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Company elected to early adopt ASU 2016‑15 in 2016 and elected to classify distributions received from equity method investees using the cumulative earnings approach. No prior period amounts required adjustment as a result of the adoption. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The standard requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and to present the net amount of the financial instrument expected to be collected. The updated standard will be effective for the Company on January 1, 2020; early adoption is permitted on January 1, 2019. The Company is currently evaluating the effect that the updated standard will have on the consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016‑09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting . The ASU aims to simplify the accounting for share-based payments by amending the accounting for forfeitures, statutory tax withholding requirements, classification in the statements of cash flow and income taxes. The updated standard was effective for the Company on January 1, 2017, at which time the Company prospectively began accounting for forfeitures as incurred and began applying the updated rules for statutory withholdings. As a result of adopting the ASU, the Company recorded a one-time adjustment for existing estimated forfeitures of $0.6 million as of January 1, 2017 to Distributions in Excess of Net Income on January 1, 2017. In February 2016, the FASB issued ASU No. 2016‑02, Leases . The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. Full retrospective application is prohibited. The standard will be effective for the Company on January 1, 2019, with early adoption permitted. While the Company is currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures, we expect to recognize right-of-use assets and related lease liabilities on our consolidated balance sheets related to ground leases on any communities where we are the lessee. In May 2014, the FASB issued ASU No. 2014‑09, Revenue from Contracts with Customers . The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, including industry-specific revenue guidance. The standard specifically excludes lease contracts. The ASU allows for the use of either the full or modified retrospective transition method and will be effective for the Company on January 1, 2018, at which time the Company expects to adopt the updated standard using the modified retrospective approach. However, as the majority of the Company’s revenue is from rental income related to leases, the Company does not expect the ASU to have a material impact on the consolidated financial statements and related disclosures. |
Principles of Consolidation | Principles of Consolidation The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Company first evaluates whether each entity is a variable interest entity ("VIE"). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. |
Discontinued operations | Discontinued Operations In accordance with GAAP, a discontinued operation represents (1) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (2) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (1) a separate major line of business, (2) a separate major geographic area of operations, (3) a major equity method investment, or (4) other major parts of an entity. We record sales of real estate that do not meet the definition of a discontinued operation in Gain/(loss) on sale of real estate owned, net of tax on the Consolidated Statements of Operations. |
Revenue and real estate sales gain recognition | Revenue and Real Estate Sales Gain Recognition Rental income related to leases is recognized on an accrual basis when due from residents and tenants in accordance with GAAP. Rental payments are generally due on a monthly basis and recognized when earned. The Company recognizes interest income, management and other fees and incentives when earned, and the amounts are fixed and determinable. For sale transactions meeting the requirements for full accrual profit recognition, we remove the related assets and liabilities from our Consolidated Balance Sheets and record the gain or loss in the period the transaction closes. For sale transactions that do not meet the full accrual sale criteria due to our continuing involvement, we evaluate the nature of the continuing involvement and account for the transaction under an alternate method of accounting. Unless certain limited criteria are met, non-monetary transactions, including property exchanges, are accounted for at fair value. Sales to entities in which we retain or otherwise own an interest are accounted for as partial sales. If all other requirements for recognizing profit under the full accrual method have been satisfied and no other forms of continuing involvement are present, we recognize profit proportionate to the outside interest of the buyer and defer the gain on the interest we retain. The Company recognizes any deferred gain when the property is sold to a third party. In transactions accounted for by us as partial sales, we determine if the buyer of the majority equity interest in the venture was provided a preference as to cash flows in either an operating or a capital waterfall. If a cash flow preference has been provided, we recognize profit only to the extent that proceeds from the sale of the majority equity interest exceed costs related to the entire property. |
Comprehensive Income/(Loss) | Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to stockholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three and six months ended June 30, 2017 and 2016, the Company’s other comprehensive income/(loss) consisted of the gain/(loss) (effective portion) on derivative instruments that are designated as and qualify as cash flow hedges, (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) into earnings, and the allocation of other comprehensive income/(loss) to noncontrolling interests. The (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) is included in Interest expense on the Consolidated Statements of Operations. See Note 10, Derivatives and Hedging Activity, for further discussion. The allocation of other comprehensive income/(loss) to redeemable noncontrolling interests during the three months ended June 30, 2017 and 2016 was less than $(0.1) million and $(0.1) million, respectively, and during the six months ended June 30, 2017 and 2016 was $0.1 million and $(0.6) million, respectively. |
Income taxes | Income Taxes Due to the structure of the Company as a REIT and the nature of the operations for the operating properties, no provision for federal income taxes has been provided for at UDR. Historically, the Company has generally incurred only state and local excise and franchise taxes. UDR has elected for certain consolidated subsidiaries to be treated as taxable REIT subsidiaries (“TRS”). Income taxes for our TRS are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. The Company’s deferred tax assets are generally the result of differing depreciable lives on capitalized assets and timing of expense recognition for certain accrued liabilities. As of June 30, 2017 and December 31, 2016, UDR’s net deferred tax asset was $0.3 million and $0.6 million, respectively. GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition. The Company recognizes its tax positions and evaluates them using a two-step process. First, UDR determines whether a tax position is more likely than not (greater than 50 percent probability to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. UDR had no material unrecognized tax benefit, accrued interest or penalties at June 30, 2017. UDR and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The tax years 2013 through 2016 remain open to examination by tax jurisdictions to which we are subject. When applicable, UDR recognizes interest and/or penalties related to uncertain tax positions in Tax (provision)/benefit, net on the Consolidated Statements of Operations. |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017‑01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The ASU changes the definition of a business to assist entities with evaluating whether a set of transferred assets is a business. As a result, the accounting for acquisitions of real estate could be impacted. The updated standard will be effective for the Operating Partnership on January 1, 2018; early adoption is permitted. The ASU will be applied prospectively to any transactions occurring within the period of adoption. The Operating Partnership expects that the updated standard will result in fewer acquisitions of real estate meeting the definition of a business and fewer acquisition-related costs being expensed in the period incurred. In November 2016, the FASB issued ASU 2016‑18, Statement of Cash Flows (Topic 230), Restricted Cash . The ASU addresses the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. The updated standard will be effective for the Operating Partnership on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Operating Partnership does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments . The ASU addresses specific cash flow items with the objective of reducing existing diversity in practice, including the treatment of distributions received from equity method investees. The updated standard will be effective for the Operating Partnership on January 1, 2018 and must be applied retrospectively to all periods presented; early adoption is permitted. The Operating Partnership elected to early adopt ASU 2016‑15 in 2016. The adoption did not have an impact on the Operating Partnership’s consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The standard requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, and to present the net amount of the financial instrument expected to be collected. The updated standard will be effective for the Operating Partnership on January 1, 2020; early adoption is permitted on January 1, 2019. The Operating Partnership is currently evaluating the effect that the updated standard will have on the consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016‑02, Leases . The standard amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of one year or less) on their balance sheets. Lessees will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate-specific provisions and changes the treatment of initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparable period presented, with an option to elect certain transition relief. Full retrospective application is prohibited. The standard will be effective for the Operating Partnership on January 1, 2019, with early adoption permitted. While the Operating Partnership is currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures, we expect to recognize right-of-use assets and related lease liabilities on our consolidated balance sheets related to ground leases on any communities where we are the lessee. In May 2014, the FASB issued ASU No. 2014‑09, Revenue from Contracts with Customers . The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, including industry-specific revenue guidance. The standard specifically excludes lease contracts. The ASU allows for the use of either the full or modified retrospective transition method and will be effective for the Operating Partnership on January 1, 2018, at which time the Operating Partnership expects to adopt the updated standard using the modified retrospective approach. However, as the majority of the Operating Partnership’s revenue is from rental income related to leases, the Operating Partnership does not expect the ASU to have a material impact on the consolidated financial statements and related disclosures. |
Principles of Consolidation | Principles of Consolidation The Operating Partnership accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the amended consolidation guidance. The Operating Partnership first evaluates whether each entity is a variable interest entity ("VIE"). Under the VIE model, the Operating Partnership consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Operating Partnership consolidates an entity when it controls the entity through ownership of a majority voting interest. |
Discontinued operations | Discontinued Operations In accordance with GAAP, a discontinued operation represents (1) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (2) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (1) a separate major line of business, (2) a separate major geographic area of operations, (3) a major equity method investment, or (4) other major parts of an entity. We record sales of real estate that do not meet the definition of a discontinued operation in Gain/(loss) on sale of real estate owned, net of tax on the Consolidated Statements of Operations. |
Income/(Loss) Per Operating Partnership Unit | Income/(Loss) Per Operating Partnership Unit Basic income/(loss) per OP Unit is computed by dividing net income/(loss) attributable to the general and limited partner unitholders by the weighted average number of general and limited partner units outstanding during the year. Diluted income/(loss) per OP Unit reflects the potential dilution that could occur if securities or other contracts to issue OP Units were exercised or converted into OP Units or resulted in the issuance of OP Units and then shared in the income/(loss) of the Operating Partnership. |
Revenue and real estate sales gain recognition | Revenue and Real Estate Sales Gain Recognition Rental income related to leases is recognized on an accrual basis when due from residents and tenants in accordance with GAAP. Rental payments are generally due on a monthly basis and recognized when earned. The Operating Partnership recognizes interest income, fees and incentives when earned, fixed and determinable. For sale transactions meeting the requirements for full accrual profit recognition, we remove the related assets and liabilities from our Consolidated Balance Sheets and record the gain or loss in the period the transaction closes. For sale transactions that do not meet the full accrual sale criteria due to our continuing involvement, we evaluate the nature of the continuing involvement and account for the transaction under an alternate method of accounting. Unless certain limited criteria are met, non-monetary transactions, including property exchanges, are accounted for at fair value. Sales to entities in which we or our General Partner retain or otherwise own an interest are accounted for as partial sales. If all other requirements for recognizing profit under the full accrual method have been satisfied and no other forms of continuing involvement are present, we recognize profit proportionate to the outside interest in the buyer and defer the gain on the interest we or our General Partner retain. The Operating Partnership recognizes any deferred gain when the property is sold to a third party. In transactions accounted by us as partial sales, we determine if the buyer of the majority equity interest in the venture was provided a preference as to cash flows in either an operating or a capital waterfall. If a cash flow preference has been provided, we recognize profit only to the extent that proceeds from the sale of the majority equity interest exceed costs related to the entire property. |
Comprehensive Income/(Loss) | Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to unitholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three and six months ended June 30, 2017 and 2016, the Operating Partnership’s other comprehensive income/(loss) consisted of the gain/(loss) (effective portion) on derivative instruments that are designated as and qualify as cash flow hedges and (gain)/loss reclassified from other comprehensive income/(loss) into earnings. The (gain)/loss reclassified from other comprehensive income/(loss) is included in Interest expense on the Consolidated Statements of Operations. See Note 8, Derivatives and Hedging Activity, for further discussion. |
Income taxes | Income Taxes The taxable income or loss of the Operating Partnership is reported on the tax returns of the partners. Accordingly, no provision has been made in the accompanying financial statements for federal or state income taxes on income that is passed through to the partners. However, any state or local revenue, excise or franchise taxes that result from the operating activities of the Operating Partnership are recorded at the entity level. The Operating Partnership’s tax returns are subject to examination by federal and state taxing authorities. Net income for financial reporting purposes differs from the net income for income tax reporting purposes primarily due to temporary differences, principally real estate depreciation and the tax deferral of certain gains on property sales. The differences in depreciation result from differences in the book and tax basis of certain real estate assets and the differences in the methods of depreciation and lives of the real estate assets. The Operating Partnership evaluates the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Operating Partnership’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management of the Operating Partnership is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. The Operating Partnership has no examinations in progress and none are expected at this time. Management of the Operating Partnership has reviewed all open tax years (2013 through 2016) of tax jurisdictions and concluded there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. |
Real Estate Owned (UNITED DOM78
Real Estate Owned (UNITED DOMINION REALTY, L.P.) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Entity Information [Line Items] | |
Summary of carrying amounts for real estate owned (at cost) | The following table summarizes the carrying amounts for our real estate owned (at cost) as of June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Land $ 1,788,391 $ 1,801,576 Depreciable property — held and used: Land improvements 183,796 178,701 Building, improvements, and furniture, fixtures and equipment 7,451,004 7,291,570 Under development: Land and land improvements 111,028 111,028 Building, improvements, and furniture, fixtures and equipment 354,701 231,254 Real estate held for disposition: Land and land improvements — 1,104 Building, improvements, and furniture, fixtures and equipment — 520 Real estate owned 9,888,920 9,615,753 Accumulated depreciation (3,132,031) (2,923,625) Real estate owned, net $ 6,756,889 $ 6,692,128 |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
Summary of carrying amounts for real estate owned (at cost) | The following table summarizes the carrying amounts for our real estate owned (at cost) as of June 30, 2017 and December 31, 2016 (dollars in thousands) : June 30, December 31, 2017 2016 Land $ 814,853 $ 836,644 Depreciable property — held and used: Buildings, improvements, and furniture, fixtures and equipment 2,879,870 2,838,060 Real estate owned 3,694,723 3,674,704 Accumulated depreciation (1,482,993) (1,408,815) Real estate owned, net $ 2,211,730 $ 2,265,889 |
Unconsolidated Entities (UNIT79
Unconsolidated Entities (UNITED DOMINION REALTY, L.P.) Unconsolidated Entities (UNITED DOMINION REALTY, L.P.) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | |
Summarized Income Statement Relating to Unconsolidated Joint Ventures [Table Text Block] | Combined summary financial information relating to the unconsolidated joint ventures ’ and partnerships ’ operations (not just our proportionate share) is presented below for the three and six months ended June 30, 2017 and 2016 ( dollars in thousands ) : Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Total revenues $ 61,175 $ 58,153 $ 119,699 $ 113,190 Property operating expenses (22,836) (22,981) (44,670) (46,394) Real estate depreciation and amortization (24,785) (21,770) (48,117) (40,713) Operating income/(loss) 13,554 13,402 26,912 26,083 Interest expense (18,949) (17,005) (36,640) (33,184) Other income/(expense) — (2) — (4) Net income/(loss) $ (5,395) $ (3,605) $ (9,728) $ (7,105) |
United Dominion Reality, L.P. | |
Schedule of Equity Method Investments [Line Items] | |
Summarized Income Statement Relating to Unconsolidated Joint Ventures [Table Text Block] | Combined summary balance sheets relating to all of the DownREIT Partnership (not just our proportionate share) are presented below as of June 30, 2017 and December 31, 2016 ( dollars in thousands ): June 30, December 31, 2017 2016 Total real estate, net $ 1,388,025 $ 1,413,983 Cash and cash equivalents 32 66 Note receivable from the General Partner 126,500 126,500 Other assets 4,233 4,843 Total assets $ 1,518,790 $ 1,545,392 Secured debt, net $ 440,546 $ 443,607 Other liabilities 27,415 27,571 Total liabilities 467,961 471,178 Total capital 1,050,829 1,074,214 Total liabilities and capital $ 1,518,790 $ 1,545,392 Combined summary financial information relating to all of the DownREIT Partnership (not just our proportionate share) is presented below for the three and six months ended June 30, 2017 and 2016 ( dollars in thousands ) : Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Rental income $ 33,628 $ 32,646 $ 66,926 $ 64,263 Property operating expenses (13,639) (13,621) (27,616) (27,890) Real estate depreciation and amortization (20,909) (30,308) (41,516) (60,361) Operating income/(loss) (920) (11,283) (2,206) (23,988) Interest expense (3,312) (3,524) (7,172) (7,265) Interest income on note receivable from the General Partner 1,166 1,179 2,333 2,359 Net income/(loss) $ (3,066) $ (13,628) $ (7,045) $ (28,894) |
Debt, Net (UNITED DOMINION RE80
Debt, Net (UNITED DOMINION REALTY, L.P.) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Entity Information [Line Items] | |
Schedule of debt instruments | The following is a summary of our secured and unsecured debt at June 30, 2017 and December 31, 2016 ( dollars in thousands ): Principal Outstanding As of June 30, 2017 Weighted Weighted Average Average Number of June 30, December 31, Interest Years to Communities 2017 2016 Rate Maturity Encumbered Secured Debt: Fixed Rate Debt Mortgage notes payable (a) $ 399,315 $ 402,996 4.04 % 5.8 7 Fannie Mae credit facilities (b) 285,836 355,836 4.86 % 2.5 8 Deferred financing costs (1,934) (2,681) Total fixed rate secured debt, net 683,217 756,151 4.39 % 4.4 15 Variable Rate Debt Tax-exempt secured notes payable (c) 94,700 94,700 1.54 % 5.7 2 Fannie Mae credit facilities (b) 29,034 280,946 2.61 % 1.4 1 Deferred financing costs (304) (939) Total variable rate secured debt, net 123,430 374,707 1.79 % 4.7 3 Total Secured Debt, net 806,647 1,130,858 3.99 % 4.5 18 Unsecured Debt: Variable Rate Debt Borrowings outstanding under unsecured credit facility due January 2020 (d) (i) — — — % 2.6 Borrowings outstanding under unsecured commercial paper program due July 2017 (e) (i) 240,000 — 1.49 % 0.1 Borrowings outstanding under unsecured working capital credit facility due January 2019 (f) 40,058 21,350 2.12 % 1.5 Term Loan Facility due January 2021 (d) (i) 35,000 35,000 2.00 % 3.6 Fixed Rate Debt 4.25% Medium-Term Notes due June 2018 (net of discounts of $394 and $608, respectively) (i) 299,606 299,392 4.25 % 0.9 3.70% Medium-Term Notes due October 2020 (net of discounts of $26 and $30, respectively) (i) 299,974 299,970 3.70 % 3.3 1.98% Term Loan Facility due January 2021 (d) (i) 315,000 315,000 1.98 % 3.6 4.63% Medium-Term Notes due January 2022 (net of discounts of $1,625 and $1,805, respectively) (i) 398,375 398,195 4.63 % 4.5 3.75% Medium-Term Notes due July 2024 (net of discounts of $730 and $782, respectively) (i) 299,270 299,218 3.75 % 7.0 8.50% Debentures due September 2024 15,644 15,644 8.50 % 7.2 4.00% Medium-Term Notes due October 2025 (net of discounts of $568 and $602, respectively) (g) (i) 299,432 299,398 4.00 % 8.3 2.95% Medium-Term Notes due September 2026 (i) 300,000 300,000 2.95 % 9.2 3.50% Medium-Term Notes due July 2027 (net of discounts of $705 and $0, respectively) (h) (i) 299,295 — 3.50 % 10.0 Other 20 21 Deferred financing costs (13,673) (12,568) Total Unsecured Debt, net 2,828,001 2,270,620 3.49 % 5.2 Total Debt, net $ 3,634,648 $ 3,401,478 3.67 % 5.1 For purposes of classification of the above table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument. Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. As of June 30, 2017, secured debt encumbered $1.7 billion or 16.9% of UDR’s total real estate owned based upon gross book value ($8.2 billion or 83.1% of UDR’s real estate owned based on gross book value is unencumbered). (a) At June 30, 2017, fixed rate mortgage notes payable are generally due in monthly installments of principal and interest and mature at various dates from May 2019 through November 2026 and carry interest rates ranging from 3.15% to 5.86%. The Company will from time to time acquire properties subject to fixed rate debt instruments. In those situations, the Company records the debt at its estimated fair value and amortizes any difference between the fair value and par value to interest expense over the life of the underlying debt instrument. During the three months ended June 30, 2017 and 2016, the Company had $0.7 million and $0.7 million, respectively, and during the six months ended June 30, 2017 and 2016, the Company had $1.5 million and $ 1.5 million, respectively, of amortization of the fair market adjustment of debt assumed in the acquisition of properties,which was included in Interest expense on the Consolidated Statements of Operations. The unamortized fair market adjustment was a net premium of $9.7 million and $11.2 million at June 30, 2017 and December 31, 2016, respectively. (b) UDR had two secured credit facilities with Fannie Mae with an aggregate commitment of $314.9 million at June 30, 2017. The Fannie Mae credit facilities mature at various dates from December 201 8 through July 2020 and bear interest at floating and fixed rates. At June 30, 2017, $285.8 million of the outstanding balance was fixed and had a weighted average interest rate of 4.86% and the remaining balance of $29.0 million had a weighted average variable interest rate of 2.61%. During the six months ended June 30, 2017, the Company prepaid $275.3 million of its secured credit facilities with borrowings under the Company’s unsecured commercial paper program and proceeds from the issuance of senior unsecured medium-term notes. The Company incurred prepayment costs of $4.3 million and $5.8 million during the three and six months ended June 30, 2017, respectively, which were included in Interest expense on the Consolidated Statements of Operations. Further information related to these credit facilities is as follows (dollars in thousands) : June 30, December 31, 2017 2016 Borrowings outstanding $ 314,870 $ 636,782 Weighted average borrowings during the period ended 518,437 737,802 Maximum daily borrowings during the period ended 636,782 813,544 Weighted average interest rate during the period ended 4.1 % 3.9 % Weighted average interest rate at the end of the period 4.7 % 3.8 % (c) The variable rate mortgage notes payable that secure tax-exempt housing bond issues mature in August 2019 and March 2032. Interest on these notes is payable in monthly installments. The variable rate mortgage notes have interest rates ranging from 1.52% to 1.54% as of June 30, 2017. (d) The Company has a $1.1 billion unsecured revolving credit facility (the “Revolving Credit Facility”) and a $350.0 million unsecured term loan facility (the “Term Loan Facility”). The credit agreement for these facilities (the "Credit Agreement") allows the total commitments under the Revolving Credit Facility and the total borrowings under the Term Loan Facility to be increased to an aggregate maximum amount of up to $2.0 billion, subject to certain conditions, including obtaining commitments from any one or more lenders. The Revolving Credit Facility has a scheduled maturity date of January 31, 2020, with two six-month extension options, subject to certain conditions. The Term Loan Facility has a scheduled maturity date of January 29, 2021. Based on the Company’s current credit rating, the Revolving Credit Facility has an interest rate equal to LIBOR plus a margin of 90 basis points and a facility fee of 15 basis points, and the Term Loan Facility has an interest rate equal to LIBOR plus a margin of 95 basis points. Depending on the Company’s credit rating, the margin under the Revolving Credit Facility ranges from 85 to 155 basis points, the facility fee ranges from 12.5 to 30 basis points, and the margin under the Term Loan Facility ranges from 90 to 175 basis points. The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Credit Agreement also includes customary events of default, in certain cases subject to customary periods to cure. The occurrence of an event of default, following the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest and all other amounts payable under the Credit Agreement to be immediately due and payable. The following is a summary of short-term bank borrowings under the Revolving Credit Facility at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total revolving credit facility $ 1,100,000 $ 1,100,000 Borrowings outstanding at end of period (1) — — Weighted average daily borrowings during the period ended 4,586 161,505 Maximum daily borrowings during the period ended 120,000 340,000 Weighted average interest rate during the period ended 1.6 % 1.4 % Interest rate at end of the period — % — % (1) Excludes $3.3 million and $2.9 million of letters of credit at June 30, 2017 and December 31, 2016, respectively. (e) On January 23, 2017, the Company entered into an unsecured commercial paper program. Under the terms of the program, the Company may issue unsecured commercial paper up to a maximum aggregate amount outstanding of $500 million. The notes are sold under customary terms in the United States commercial paper market and rank pari passu with all of the Company’s other unsecured indebtedness. The notes are fully and unconditionally guaranteed by the Operating Partnership. The following is a summary of short-term bank borrowings under the unsecured commercial paper program at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total unsecured commercial paper program $ 500,000 $ — Borrowings outstanding at end of period 240,000 — Weighted average daily borrowings during the period ended 186,743 — Maximum daily borrowings during the period ended 340,000 — Weighted average interest rate during the period ended 1.3 % — % Interest rate at end of the period 1.5 % — % (f) The Company has a working capital credit facility, which provides for a $75 million unsecured revolving credit facility (the “Working Capital Credit Facility”) with a scheduled maturity date of January 1, 2019. Based on the Company’s current credit rating, the Working Capital Credit Facility has an interest rate equal to LIBOR plus a margin of 90 basis points. Depending on the Company’s credit rating, the margin ranges from 85 to 155 basis points. The following is a summary of short-term bank borrowings under the Working Capital Credit Facility at June 30, 2017 and December 31, 2016 (dollars in thousands): June 30, December 31, 2017 2016 Total working capital credit facility $ 75,000 $ 75,000 Borrowings outstanding at end of period 40,058 21,350 Weighted average daily borrowings during the period ended 24,809 21,936 Maximum daily borrowings during the period ended 67,799 69,633 Weighted average interest rate during the period ended 1.8 % 1.4 % Interest rate at end of the period 2.1 % 1.7 % (g) The Company previously entered into forward starting interest rate swaps to hedge against interest rate risk on $200 million of this debt. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 4.55%. (h) On June 16, 2017, the Company issued $300 million of 3.50% senior unsecured medium-term notes due July 1, 2027. Interest is payable semi-annually in arrears on January 1 and July 1 of each year, beginning on January 1, 2018. The notes were priced at 99.764% of the prinicipal amount at issuance. The Company used the net proceeds for the repayment of outstanding indebtedness and for general corporate purposes. (i) The Operating Partnership is a guarantor of this debt. |
Secured credit facilities | Further information related to these credit facilities is as follows (dollars in thousands) : June 30, December 31, 2017 2016 Borrowings outstanding $ 314,870 $ 636,782 Weighted average borrowings during the period ended 518,437 737,802 Maximum daily borrowings during the period ended 636,782 813,544 Weighted average interest rate during the period ended 4.1 % 3.9 % Weighted average interest rate at the end of the period 4.7 % 3.8 % |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
Schedule of debt instruments | Secured debt consists of the following as of June 30, 2017 and December 31, 2016 ( dollars in thousands ): Principal Outstanding As of June 30, 2017 Weighted Weighted Average June 30, December 31, Average Years to Communities 2017 2016 Interest Rate Maturity Encumbered Fixed Rate Debt Fannie Mae credit facilities $ 133,204 $ 244,912 5.28 % 2.3 4 Deferred financing costs (358) (1,070) Total fixed rate secured debt, net 132,846 243,842 5.28 % 2.3 4 Variable Rate Debt Tax-exempt secured note payable 27,000 27,000 1.52 % 14.7 1 Fannie Mae credit facilities — 163,637 — % — — Deferred financing costs (82) (505) Total variable rate secured debt, net 26,918 190,132 1.52 % 14.7 1 Total Secured Debt, Net $ 159,764 $ 433,974 4.96 % 4.4 5 |
Secured credit facilities | The following information relates to the credit facilities owed by the Operating Partnership (dollars in thousands) : June 30, December 31, 2017 2016 Borrowings outstanding $ 133,204 $ 408,549 Weighted average borrowings during the period ended 313,489 414,759 Maximum daily borrowings during the period ended 408,549 421,001 Weighted average interest rate during the period ended 4.3 % 3.9 % Interest rate at the end of the period 5.3 % 4.0 % |
Aggregate maturities of secured debt | The aggregate maturities of the Operating Partnership’s secured debt due during each of the next ten calendar years subsequent to June 30, 2017 are as follows (dollars in thousands): Fixed Variable Tax-Exempt Secured Credit Secured Notes Year Facilities Payable Total 2017 $ — $ — $ — 2018 — — — 2019 133,204 — 133,204 2020 — — — 2021 — — — 2022 — — — 2023 — — — 2024 — — — 2025 — — — 2026 — — — Thereafter — 27,000 27,000 Subtotal 133,204 27,000 160,204 Non-cash (a) (358) (82) (440) Total $ 132,846 $ 26,918 $ 159,764 (a) Includes the unamortized balance of fair market value adjustments, premiums/discounts, deferred hedge gains, and deferred financing costs. For the three months ended June 30, 2017 and 2016, the Operating Partnership amortized $0.1 million and $0.1 million, respectively, and $0.2 million and $0. 3 million for the six months ended June 30, 2017 and 2016, respectively, of deferred financing costs into Interest expense . |
Fair Value of Derivatives and81
Fair Value of Derivatives and Financial Instruments (UNITED DOMINION REALTY, L.P.) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Entity Information [Line Items] | |
Estimated fair values | The estimated fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis as of June 30, 2017 and December 31, 2016 are summarized as follows (dollars in thousands) : Fair Value at June 30, 2017, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable June 30, June 30, Liabilities Inputs Inputs 2017 2017 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 17,290 $ 17,286 $ — $ — $ 17,286 Derivatives - Interest rate contracts (b) 4,377 4,377 — 4,377 — Total assets $ 21,667 $ 21,663 $ — $ 4,377 $ 17,286 Secured debt instruments - fixed rate: (c) Mortgage notes payable $ 399,315 $ 396,828 $ — $ — $ 396,828 Fannie Mae credit facilities 285,836 292,860 — — 292,860 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 94,700 94,700 — — 94,700 Fannie Mae credit facilities 29,034 29,034 — — 29,034 Unsecured debt instruments: (c) Working capital credit facility 40,058 40,058 — — 40,058 Commercial paper program 240,000 240,000 — — 240,000 Unsecured notes 2,561,616 2,611,612 — — 2,611,612 Total liabilities $ 3,650,559 $ 3,705,092 $ — $ — $ 3,705,092 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 967,797 $ 967,797 $ — $ 967,797 $ — Fair Value at December 31, 2016, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable December 31, December 31, Liabilities Inputs Inputs 2016 2016 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 19,790 $ 19,645 $ — $ — $ 19,645 Derivatives - Interest rate contracts (b) 4,360 4,360 — 4,360 — Total assets $ 24,150 $ 24,005 $ — $ 4,360 $ 19,645 Derivatives- Interest rate contracts (b) $ 413 $ 413 $ — $ 413 $ — Secured debt instruments - fixed rate: (c) Mortgage notes payable 402,996 396,045 — — 396,045 Fannie Mae credit facilities 355,836 365,693 — — 365,693 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 94,700 94,700 — — 94,700 Fannie Mae credit facilities 280,946 280,946 — — 280,946 Unsecured debt instruments: (c) Working capital credit facility 21,350 21,350 — — 21,350 Unsecured notes 2,261,838 2,304,492 — — 2,304,492 Total liabilities $ 3,418,079 $ 3,463,639 $ — $ 413 $ 3,463,226 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 909,482 $ 909,482 $ — $ 909,482 $ — (a) See Note 2, Significant Accounting Policies . (b) See Note 10, Derivatives and Hedging Activity . (c) See Note 6, Secured Debt and Unsecured Debt, Net . See Note 8, Noncontrolling Interests . |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
Estimated fair values | The estimated fair values of the Operating Partnership’s financial instruments either recorded or disclosed on a recurring basis as of June 30, 2017 and December 31, 2016 are summarized as follows (dollars in thousands) : Fair Value at June 30, 2017, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable June 30, June 30, Liabilities Inputs Inputs 2017 2017 (Level 1) (Level 2) (Level 3) Description: Secured debt instruments - fixed rate: (a) Fannie Mae credit facilities $ 133,204 $ 137,739 $ — $ — $ 137,739 Secured debt instruments - variable rate: (a) Tax-exempt secured notes payable 27,000 27,000 — — 27,000 Total liabilities $ 160,204 $ 164,739 $ — $ — $ 164,739 Fair Value at December 31, 2016, Using Quoted Total Prices in Carrying Active Amount in Markets Statement of for Identical Significant Financial Fair Value Assets Other Significant Position at Estimate at or Observable Unobservable December 31, December 31, Liabilities Inputs Inputs 2016 2016 (Level 1) (Level 2) (Level 3) Description: Derivatives - Interest rate contracts (b) $ 1 $ 1 $ — $ 1 $ — Total assets $ 1 $ 1 $ — $ 1 $ — Secured debt instruments - fixed rate: (a) Fannie Mae credit facilities $ 244,912 $ 251,664 $ — $ — $ 251,664 Secured debt instruments - variable rate: (a) — Tax-exempt secured notes payable 27,000 27,000 — — 27,000 Fannie Mae credit facilities 163,637 163,637 — — 163,637 Total liabilities $ 435,549 $ 442,301 $ — $ — $ 442,301 (a) See Note 5, Debt, Net. (b) See Note 8, Derivatives and Hedging Activity. |
Derivatives and Hedging Activ82
Derivatives and Hedging Activity (UNITED DOMINION REALTY, L.P.) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Entity Information [Line Items] | |
Outstanding interest rate derivatives | As of June 30, 2017, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk ( dollars in thousands ): Number of Product Instruments Notional Interest rate swaps 4 $ 315,000 Interest rate caps 1 $ 65,197 Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in a loss of less than $0.1 million for the three and six months ended June 30, 2017 and 2016. As of June 30, 2017, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships ( dollars in thousands ): Number of Product Instruments Notional Interest rate caps 3 $ 271,076 |
Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016 ( dollars in thousands ): Asset Derivatives Liability Derivatives (included in Other assets ) (included in Other liabilities ) Fair Value at: Fair Value at: June 30, December 31, June 30, December 31, 2017 2016 2017 2016 Derivatives designated as hedging instruments: Interest rate products $ 4,377 $ 4,359 $ — $ 413 Derivatives not designated as hedging instruments: Interest rate products $ — $ 1 $ — $ — |
Effect of Company's derivative financial instruments on Consolidated Statements of Operation | The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016 ( dollars in thousands ): Gain/(Loss) Recognized in Gain/(Loss) Reclassified Interest expense Unrealized holding gain/(loss) from Accumulated OCI into (Ineffective Portion and Recognized in OCI Interest expense Amount Excluded from (Effective Portion) (Effective Portion) Effectiveness Testing) Derivatives in Cash Flow Hedging Relationships 2017 2016 2017 2016 2017 2016 Three Months Ended June 30, Interest rate products $ (507) $ (1,963) $ (308) $ (943) $ (82) $ — Six Months Ended June 30, Interest rate products $ 126 $ (2,774) $ (1,073) $ (1,878) $ (136) $ — |
Effect of Company's derivatives not designated as hedging instruments on the Consolidated Statements of Operations | Gain/(Loss) Recognized in Interest income and other income/(expense), net Derivatives Not Designated as Hedging Instruments 2017 2016 Three Months Ended June 30, Interest rate products $ — $ (3) Six Months Ended June 30, Interest rate products $ (1) $ (3) |
Offsetting Assets [Table Text Block] | The Company has elected not to offset derivative positions in the consolidated financial statements. The tables below present the effect on its financial position had the Company made the election to offset its derivative positions as of June 30, 2017 and December 31, 2016 (dollars in thousands): Gross Net Amounts of Gross Amounts Not Offset Amounts Assets in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Assets Assets Sheets (a) Instruments Received Net Amount June 30, 2017 $ 4,377 $ — $ 4,377 $ — $ — $ 4,377 December 31, 2016 $ 4,360 $ — $ 4,360 $ (221) $ — $ 4,139 (a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
Offsetting Liabilities [Table Text Block] | Gross Net Amounts of Gross Amounts Not Offset Amounts Liabilities in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Liabilities Liabilities Sheets (a) Instruments Posted Net Amount June 30, 2017 $ — $ — $ — $ — $ — $ — December 31, 2016 $ 413 $ — $ 413 $ (221) $ — $ 192 Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
Outstanding interest rate derivatives | As of June 30, 2017, we had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships ( dollars in thousands ): Number of Product Instruments Notional Interest rate caps 3 $ 170,074 |
Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheet | The table below presents the fair value of the Operating Partnership’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016 ( dollars in thousands ): Asset Derivatives Liability Derivatives (included in Other assets) (Included in Other liabilities) Fair Value at: Fair Value at: June 30, December 31, June 30, December 31, 2017 2016 2017 2016 Derivatives not designated as hedging instruments: Interest rate products $ — $ 1 $ — $ — |
Effect of Company's derivative financial instruments on Consolidated Statements of Operation | The tables below present the effect of the derivative financial instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016 ( dollars in thousands ): Gain/(Loss) Recognized Unrealized holding Gain/(Loss) Reclassified in Interest expense gain/(loss) Recognized in from Accumulated OCI into (Ineffective Portion and OCI Interest expense Amount Excluded from (Effective Portion) (Effective Portion) Effectiveness Testing) Derivatives in Cash Flow Hedging Relationships 2017 2016 2017 2016 2017 2016 Three Months Ended June 30, Interest rate products $ — $ (1) $ — $ (2) $ (52) $ — Six Months Ended June 30, Interest rate products $ — $ (3) $ — $ (3) $ (106) $ — |
Effect of Company's derivatives not designated as hedging instruments on the Consolidated Statements of Operations | Gain/(Loss) Recognized in Interest income and other income/(expense), net Derivatives Not Designated as Hedging Instruments 2017 2016 Three Months Ended June 30, Interest rate products $ — $ (3) Six Months Ended June 30, Interest rate products $ (1) $ (3) |
Offsetting Assets [Table Text Block] | The General Partner has elected not to offset derivative positions in the consolidated financial statements. The table below presents the effect on the Operating Partnership’s financial position had the General Partner made the election to offset its derivative positions as of June 30, 2017 and December 31, 2016: Gross Gross Amounts Not Offset Amounts Net Amounts of in the Consolidated Gross Offset in the Assets Balance Sheets Amounts of Consolidated Presented in the Cash Recognized Balance Consolidated Financial Collateral Assets Sheets Balance Sheets (a) Instruments Received Net Amount June 30, 2017 $ — — — $ — $ — $ — December 31, 2016 $ 1 $ — $ 1 $ — $ — $ 1 (a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
Offsetting Liabilities [Table Text Block] | Gross Gross Amounts Not Offset Amounts Net Amounts of in the Consolidated Gross Offset in the Liabilities Balance Sheets Amounts of Consolidated Presented in the Cash Recognized Balance Consolidated Financial Collateral Liabilities Sheets Balance Sheets (a) Instruments Posted Net Amount June 30, 2017 $ — $ — $ — $ — $ — $ — December 31, 2016 $ — $ — $ — $ — $ — $ — Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
Capital Structure (UNITED DOM83
Capital Structure (UNITED DOMINION REALTY, L.P.) Capital Structure (UNITED DOMINION REALTY, L.P.) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
United Dominion Reality, L.P. | |
Limited Partners' Capital Account [Line Items] | |
Schedule of Limited Partners' Capital Account by Class [Table Text Block] | The following table shows OP Units outstanding and OP Unit activity as of and for the six months ended June 30, 2017: UDR, Inc. Class A Class A Limited Limited Limited Limited General Partners Partners Partner Partner Partner Total Ending balance at December 31, 2016 1,751,671 7,296,943 173,997,540 121,661 110,883 183,278,698 Vesting of LTIP Units — 72,226 — — — 72,226 OP redemptions for UDR stock — (3,607) 3,607 — — — Ending balance at June 30, 2017 1,751,671 7,365,562 174,001,147 121,661 110,883 183,350,924 |
Reportable Segments (UNITED D84
Reportable Segments (UNITED DOMINION REALTY, L.P.) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Entity Information [Line Items] | |
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | The following table details rental income and NOI for UDR’s reportable segments for the three and six months ended June 30, 2017 and 2016, and reconciles NOI to Net Income/(Loss) Attributable to UDR, Inc. in the Consolidated Statements of Operations (dollars in thousands) : Three Months Ended Six Months Ended June 30, (a) June 30, (b) 2017 2016 2017 2016 Reportable apartment home segment rental income Same-Store Communities West Region $ 83,222 $ 79,566 $ 165,442 $ 157,973 Mid-Atlantic Region 57,199 55,586 104,620 101,288 Northeast Region 37,732 36,749 75,653 73,209 Southeast Region 29,149 27,702 57,806 54,839 Southwest Region 10,685 10,237 21,365 20,363 Non-Mature Communities/Other 26,671 26,328 61,043 60,453 Total segment and consolidated rental income $ 244,658 $ 236,168 $ 485,929 $ 468,125 Reportable apartment home segment NOI Same-Store Communities West Region $ 62,658 $ 58,819 $ 124,552 $ 117,963 Mid-Atlantic Region 40,106 39,039 72,928 69,450 Northeast Region 27,151 26,983 54,052 53,343 Southeast Region 20,059 19,081 39,720 37,877 Southwest Region 6,613 6,344 13,293 12,676 Non-Mature Communities/Other 18,036 17,049 41,561 40,140 Total segment and consolidated NOI 174,623 167,315 346,106 331,449 Reconciling items: Joint venture management and other fees 3,321 2,618 5,891 5,476 Property management (6,728) (6,494) (13,363) (12,873) Other operating expenses (2,369) (1,892) (4,060) (3,644) Real estate depreciation and amortization (108,450) (105,937) (213,482) (211,276) General and administrative (11,434) (10,835) (24,509) (24,679) Casualty-related (charges)/recoveries, net (1,191) (1,629) (1,693) (1,629) Other depreciation and amortization (1,567) (1,486) (3,175) (3,039) Income/(loss) from unconsolidated entities (1,426) 325 9,772 1,004 Interest expense (33,866) (30,678) (64,405) (61,782) Interest income and other income/(expense), net 515 540 942 971 Tax (provision)/benefit, net (366) 402 (698) 805 Gain/(loss) on sale of real estate owned, net of tax — 7,315 2,132 10,385 Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (854) (1,610) (3,192) (2,515) Net (income)/loss attributable to noncontrolling interests (51) (8) (142) (314) Net income/(loss) attributable to UDR, Inc. $ 10,157 $ 17,946 $ 36,124 $ 28,339 (a) Same-Store Community population consisted of 36,540 apartment homes. (b) Same-Store Community population consisted of 35,689 apartment homes. |
Details of assets of UDR's reportable segments | The following table details the assets of UDR’s reportable segments as of June 30, 2017 and December 31, 2016 (dollars in thousands) : June 30, December 31, 2017 2016 Reportable apartment home segment assets: Same-Store Communities: West Region $ 2,954,555 $ 2,938,073 Mid-Atlantic Region 2,434,358 2,427,948 Northeast Region 1,860,934 1,857,193 Southeast Region 752,902 746,762 Southwest Region 286,145 283,260 Non-Mature Communities/Other 1,600,026 1,362,517 Total segment assets 9,888,920 9,615,753 Accumulated depreciation (3,132,031) (2,923,625) Total segment assets — net book value 6,756,889 6,692,128 Reconciling items: Cash and cash equivalents 1,411 2,112 Restricted cash 19,602 19,994 Notes receivable, net 17,290 19,790 Investment in and advances to unconsolidated joint ventures, net 843,167 827,025 Other assets 129,575 118,535 Total consolidated assets $ 7,767,934 $ 7,679,584 |
United Dominion Reality, L.P. | |
Entity Information [Line Items] | |
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | The following table details rental income and NOI for the Operating Partnership’s reportable segments for the three and six months ended June 30, 2017 and 2016, and reconciles NOI to Net income/(loss) attributable to OP unitholders in the Consolidated Statements of Operations (dollars in thousands) : Three Months Ended Six Months Ended June 30, (a) June 30, (b) 2017 2016 2017 2016 Reportable apartment home segment rental income Same-Store Communities West Region $ 51,267 $ 48,604 $ 101,748 $ 96,239 Mid-Atlantic Region 14,798 14,407 29,546 28,574 Northeast Region 13,545 13,203 27,104 26,209 Southeast Region 12,452 11,918 24,723 23,615 Non-Mature Communities/Other 12,026 12,760 23,572 25,041 Total segment and consolidated rental income $ 104,088 $ 100,892 $ 206,693 $ 199,678 Reportable apartment home segment NOI Same-Store Communities West Region $ 38,961 $ 36,787 $ 77,406 $ 72,946 Mid-Atlantic Region 10,134 9,887 20,229 19,249 Northeast Region 10,473 10,407 20,604 20,463 Southeast Region 8,544 8,165 16,827 16,208 Non-Mature Communities/Other 8,902 9,412 17,011 18,344 Total segment and consolidated NOI 77,014 74,658 152,077 147,210 Reconciling items: Property management (2,862) (2,775) (5,684) (5,492) Other operating expenses (2,128) (1,519) (3,676) (3,019) Real estate depreciation and amortization (39,231) (37,053) (76,110) (73,844) General and administrative (4,408) (3,844) (9,627) (9,265) Casualty-related recoveries/(charges), net (1,191) (465) (1,744) (465) Income/(loss) from unconsolidated entities (4,350) (10,030) (9,774) (23,417) Interest expense (11,652) (7,578) (20,263) (15,183) Net (income)/loss attributable to noncontrolling interests (343) (350) (693) (694) Net income/(loss) attributable to OP unitholders $ 10,849 $ 11,044 $ 24,506 $ 15,831 (a) Same-Store Community population consisted of 15,058 apartment homes. (b) Same-Store Community population consisted of 15,058 apartment homes. |
Details of assets of UDR's reportable segments | The following table details the assets of the Operating Partnership’s reportable segments as of June 30, 2017 and December 31, 2016 (dollars in thousands) : June 30, December 31, 2017 2016 Reportable apartment home segment assets Same-Store Communities West Region $ 1,608,744 $ 1,596,815 Mid-Atlantic Region 652,533 655,693 Northeast Region 676,258 674,928 Southeast Region 329,987 328,729 Non-Mature Communities/Other 427,201 418,539 Total segment assets 3,694,723 3,674,704 Accumulated depreciation (1,482,993) (1,408,815) Total segment assets - net book value 2,211,730 2,265,889 Reconciling items: Cash and cash equivalents 85 756 Restricted cash 12,210 11,694 Investment in unconsolidated entities 94,741 112,867 Other assets 30,523 24,329 Total consolidated assets $ 2,349,289 $ 2,415,535 |
Consolidation and Basis of Pr85
Consolidation and Basis of Presentation (UNITED DOMINION REALTY, L.P.) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017communityitemshares | Jun. 30, 2016 | Jun. 30, 2017communityitemshares | Jun. 30, 2016 | Dec. 31, 2016shares | |
Entity Information [Line Items] | |||||
Number of Real Estate Properties | community | 128 | 128 | |||
Number of apartments owned (in apartments homes) | item | 39,822 | 39,822 | |||
OP units outstanding related to limited partner | 183,350,924 | 183,350,924 | 183,278,698 | ||
United Dominion Reality, L.P. | |||||
Entity Information [Line Items] | |||||
Rental revenues percent of General Partner's consolidated rental revenues | 43.00% | 43.00% | 43.00% | 43.00% | |
Number of Real Estate Properties | community | 54 | 54 | |||
Number of markets operating within (in markets) | item | 14 | 14 | |||
Number of apartments owned (in apartments homes) | item | 16,698 | 16,698 | |||
Operating Partnership outstanding units | 183,350,924 | 183,350,924 | |||
OP units outstanding related to general partner | 110,883 | 110,883 | 110,883 | ||
OP units outstanding related to limited partner | 183,240,041 | 183,240,041 | 183,167,815 | ||
Limited Partner | United Dominion Reality, L.P. | |||||
Entity Information [Line Items] | |||||
OP units outstanding related to general partner | 174,233,691 | 174,233,691 | |||
OP units outstanding related to limited partner | 174,233,691 | 174,233,691 | |||
Percentage of units outstanding in Heritage OP | 95.00% | 95.00% | |||
Non-affiliated Partners | |||||
Entity Information [Line Items] | |||||
OP units outstanding related to limited partner | 7,365,562 | 7,365,562 | 7,296,943 | ||
Non-affiliated Partners | United Dominion Reality, L.P. | |||||
Entity Information [Line Items] | |||||
OP units outstanding related to limited partner | 9,117,233 | 9,117,233 | 9,048,614 | ||
Percentage of units outstanding in Heritage OP | 5.00% | 5.00% | 4.90% |
Real Estate Owned (UNITED DOM86
Real Estate Owned (UNITED DOMINION REALTY, L.P.) - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 1,788,391 | $ 1,801,576 |
Under development: | ||
Real estate under development (net of accumulated depreciation of $428 and $0, respectively) | 465,301 | 342,282 |
Real estate owned | 9,888,920 | 9,615,753 |
Real Estates Owned Accumulated Depreciation | (3,132,031) | (2,923,625) |
Total real estate owned, net of accumulated depreciation | 6,756,889 | 6,692,128 |
Land | ||
Under development: | ||
Real estate under development (net of accumulated depreciation of $428 and $0, respectively) | 111,028 | 111,028 |
Real estate held for disposition | 1,104 | |
Construction in progress | ||
Under development: | ||
Real estate under development (net of accumulated depreciation of $428 and $0, respectively) | 354,701 | 231,254 |
Building and improvements | ||
Under development: | ||
Real estate held for disposition | 520 | |
United Dominion Reality, L.P. | ||
Property, Plant and Equipment [Line Items] | ||
Land | 814,853 | 836,644 |
Depreciable property - held and used: | ||
Building, improvements, and furniture, fixture and equipment | 2,879,870 | 2,838,060 |
Under development: | ||
Real estate owned | 3,694,723 | 3,674,704 |
Real Estates Owned Accumulated Depreciation | (1,482,993) | (1,408,815) |
Total real estate owned, net of accumulated depreciation | $ 2,211,730 | $ 2,265,889 |
Real Estate Owned (UNITED DOM87
Real Estate Owned (UNITED DOMINION REALTY, L.P.) - Acquisitions and Dispositions (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($)statecommunityitem | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)statecommunityitem | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Real Estate Owned (Textual) [Abstract] | |||||
Number of communities owned (in communities) | community | 128 | 128 | |||
Number of states operating within (in states) | state | 10 | 10 | |||
Number of apartments owned (in apartments homes) | item | 39,822 | 39,822 | |||
Development costs excluding direct costs and capitalized interest | $ 1,700 | $ 2,700 | $ 4,400 | $ 4,700 | |
Interest capitalized during period | 4,600 | 3,800 | 9,400 | 8,000 | |
Other Cost and Expense, Operating | 2,369 | 1,892 | 4,060 | 3,644 | |
Proceeds from Sale of Property, Plant, and Equipment | 3,500 | ||||
Deferred fees from the sale of properties | 10,300 | 10,300 | $ 9,500 | ||
Casualty-related (recoveries)/charges, net | $ 1,191 | 1,629 | 1,693 | 1,629 | |
Payments for (Proceeds from) Investments | $ 3,300 | ||||
United Dominion Reality, L.P. | |||||
Real Estate Owned (Textual) [Abstract] | |||||
Number of communities owned (in communities) | community | 54 | 54 | |||
Number of states operating within (in states) | state | 8 | 8 | |||
Number of apartments owned (in apartments homes) | item | 16,698 | 16,698 | |||
Development costs excluding direct costs and capitalized interest | $ 100 | 300 | $ 400 | 600 | |
Interest capitalized during period | 100 | 100 | 100 | 200 | |
Other Cost and Expense, Operating | 2,128 | 1,519 | 3,676 | 3,019 | |
Casualty-related (recoveries)/charges, net | $ 1,191 | $ 465 | $ 1,744 | $ 465 |
Unconsolidated Entities (UNIT88
Unconsolidated Entities (UNITED DOMINION REALTY, L.P.) - Summary Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Equity Method Investments | $ 843,167 | $ 843,167 | $ 827,025 | ||
Income/(loss) from unconsolidated entities | (1,426) | $ 325 | 9,772 | $ 1,004 | |
United Dominion Reality, L.P. | |||||
Equity Method Investments | 94,741 | 94,741 | 112,867 | ||
Income/(loss) from unconsolidated entities | (4,350) | (10,030) | (9,774) | (23,417) | |
UDR Lighthouse DownREIT L.P. [Member] | United Dominion Reality, L.P. | |||||
Equity Method Investment Summarized Financial Information Real Estate, Net | 1,388,025 | 1,388,025 | 1,413,983 | ||
Equity Method Investment Summarized Financial Information Cash and cash equivalents | 32 | 32 | 66 | ||
Equity Method Investment Summarized Financial Instrument, Note Receivable | 126,500 | 126,500 | 126,500 | ||
Equity Method Investment Summarized Financial Information Other assets | 4,233 | 4,233 | 4,843 | ||
Equity Method Investment, Summarized Financial Information, Assets | 1,518,790 | 1,518,790 | 1,545,392 | ||
Equity Method Investment Summarized Financial Information, Secured Debt, Net | 440,546 | 440,546 | 443,607 | ||
Equity Method Investment, Summarized Financial Information, Other Liabilities | 27,415 | 27,415 | 27,571 | ||
Equity Method Investment, Summarized Financial Information, Liabilities | 467,961 | 467,961 | 471,178 | ||
Equity Method Investment Summarized Financial Information, Equity | 1,050,829 | 1,050,829 | 1,074,214 | ||
Equity Method Investment, Summarized Financial Information, Liabilities and Equity, Total | 1,518,790 | 1,518,790 | 1,545,392 | ||
Equity Method Investment, Summarized Financial Information, Revenue | 33,628 | 32,646 | 66,926 | 64,263 | |
Equity Method Investments | 94,700 | 94,700 | $ 112,900 | ||
Equity Method Investment Summarized Financial Information Property Operating Expense | (13,639) | (13,621) | (27,616) | (27,890) | |
Equity Method Investment Summarized Financial Information Depreciation Amortization | (20,909) | (30,308) | (41,516) | (60,361) | |
Equity Method of Investment Summarized Financial Information Operating income/(loss) | (920) | (11,283) | (2,206) | (23,988) | |
Equity Method Investment Summarized Financial Information Interest expense | (3,312) | (3,524) | (7,172) | (7,265) | |
Equity Method Investment Summarized Financial Information Other income/(expense) | 1,166 | 1,179 | 2,333 | 2,359 | |
Net income /(loss) | $ (3,066) | $ (13,628) | $ (7,045) | $ (28,894) |
Unconsolidated Entities (UNIT89
Unconsolidated Entities (UNITED DOMINION REALTY, L.P.) - Additional Information (Details) $ in Thousands | Jun. 30, 2017USD ($)communityitem | Dec. 31, 2016USD ($) |
Schedule of Equity Method Investments [Line Items] | ||
Number of Real Estate Properties | community | 128 | |
Number of apartment homes owned and consolidated by the Company | item | 39,822 | |
Equity Method Investments | $ | $ 843,167 | $ 827,025 |
United Dominion Reality, L.P. | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Real Estate Properties | community | 54 | |
Number of apartment homes owned and consolidated by the Company | item | 16,698 | |
Equity Method Investments | $ | $ 94,741 | 112,867 |
United Dominion Reality, L.P. | UDR Lighthouse DownREIT L.P. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Real Estate Properties | community | 13 | |
Number of apartment homes owned and consolidated by the Company | item | 6,261 | |
Equity Method Investments | $ | $ 94,700 | $ 112,900 |
Debt (UNITED DOMINION REALTY, L
Debt (UNITED DOMINION REALTY, L.P.) - Summary (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017USD ($)community | Jun. 30, 2017USD ($)community | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Interest rate at end of the period | 3.67% | ||
Debt Instrument Weighted Average Years to Maturity | 5 years 1 month 6 days | ||
Fixed Rate Debt | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 683,217 | $ 683,217 | $ 756,151 |
Interest rate at end of the period | 4.39% | ||
Debt Instrument Weighted Average Years to Maturity | 4 years 4 months 24 days | ||
Number of Communities Encumbered (in communities) | community | 15 | ||
Fixed Rate Debt | Mortgages Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 399,315 | 399,315 | |
Interest rate at end of the period | 4.04% | ||
Debt Instrument Weighted Average Years to Maturity | 5 years 9 months 18 days | ||
Number of Communities Encumbered (in communities) | community | 7 | ||
Fixed Rate Debt | Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 285,836 | $ 285,836 | 355,836 |
Interest rate at end of the period | 4.86% | 4.86% | |
Debt Instrument Weighted Average Years to Maturity | 2 years 6 months | ||
Variable Rate Debt | Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 29,034 | $ 29,034 | 280,946 |
Interest rate at end of the period | 2.61% | 2.61% | |
Debt Instrument Weighted Average Years to Maturity | 1 year 4 months 24 days | ||
Number of Communities Encumbered (in communities) | community | 1 | ||
Variable Rate Debt | Tax Exempt Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 94,700 | $ 94,700 | 94,700 |
Interest rate at end of the period | 1.54% | ||
Debt Instrument Weighted Average Years to Maturity | 5 years 8 months 12 days | ||
Number of Communities Encumbered (in communities) | community | 2 | ||
Line Of Credit [Member] | Fixed Rate Debt | Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Number of Communities Encumbered (in communities) | community | 8 | ||
Secured Debt [Member] | United Dominion Reality, L.P. | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 159,764 | $ 159,764 | 433,974 |
Interest rate at end of the period | 4.96% | ||
Debt Instrument Weighted Average Years to Maturity | 4 years 4 months 24 days | ||
Number of Communities Encumbered (in communities) | community | 5 | ||
Secured Debt [Member] | United Dominion Reality, L.P. | Fixed Rate Debt | |||
Debt Instrument [Line Items] | |||
Principal outstanding | 132,846 | $ 132,846 | 243,842 |
Interest rate at end of the period | 5.28% | ||
Debt Instrument Weighted Average Years to Maturity | 2 years 3 months 18 days | ||
Number of Communities Encumbered (in communities) | community | 4 | ||
Deferred Finance Costs, Net | (358) | $ (358) | (1,070) |
Secured Debt [Member] | United Dominion Reality, L.P. | Variable Rate Debt | |||
Debt Instrument [Line Items] | |||
Principal outstanding | 26,918 | $ 26,918 | 190,132 |
Interest rate at end of the period | 1.52% | ||
Debt Instrument Weighted Average Years to Maturity | 14 years 8 months 12 days | ||
Number of Communities Encumbered (in communities) | community | 1 | ||
Deferred Finance Costs, Net | (82) | $ (82) | (505) |
Secured Debt [Member] | United Dominion Reality, L.P. | Variable Rate Debt | Tax Exempt Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Principal outstanding | 27,000 | $ 27,000 | 27,000 |
Interest rate at end of the period | 1.52% | ||
Debt Instrument Weighted Average Years to Maturity | 14 years 8 months 12 days | ||
Number of Communities Encumbered (in communities) | community | 1 | ||
Secured Debt [Member] | Line Of Credit [Member] | United Dominion Reality, L.P. | Fixed Rate Debt | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 133,204 | $ 133,204 | 244,912 |
Interest rate at end of the period | 5.28% | ||
Debt Instrument Weighted Average Years to Maturity | 2 years 3 months 18 days | ||
Number of Communities Encumbered (in communities) | community | 4 | ||
Secured Debt [Member] | Line Of Credit [Member] | United Dominion Reality, L.P. | Variable Rate Debt | |||
Debt Instrument [Line Items] | |||
Principal outstanding | $ 163,637 |
Debt (UNITED DOMINION REALTY,91
Debt (UNITED DOMINION REALTY, L.P.) - Credit Facilities .(Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Debt Instrument Weighted Average Years to Maturity | 5 years 1 month 6 days | ||
Long-term Line of Credit | $ 3,300 | $ 3,300 | $ 2,900 |
Interest expense | |||
Debt Instrument [Line Items] | |||
Prepayment costs | 4,300 | 5,800 | |
Fannie Mae | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | $ 314,870 | 314,870 | 636,782 |
Weighted average daily borrowings during the period ended | 518,437 | 737,802 | |
Maximum daily borrowings during the period ended | $ 636,782 | $ 813,544 | |
Weighted average interest rate during the period ended | 4.10% | 3.90% | |
Interest rate at the end of the period | 4.70% | 4.70% | 3.80% |
United Dominion Reality, L.P. | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | $ 133,204 | $ 133,204 | $ 408,549 |
Weighted average daily borrowings during the period ended | 313,489 | 414,759 | |
Maximum daily borrowings during the period ended | $ 408,549 | $ 421,001 | |
Weighted average interest rate during the period ended | 4.30% | 3.90% | |
Interest rate at the end of the period | 5.30% | 5.30% | 4.00% |
United Dominion Reality, L.P. | Interest expense | |||
Debt Instrument [Line Items] | |||
Prepayment costs | $ 4,300 | $ 5,800 | |
United Dominion Reality, L.P. | Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Prepaid line of credit | 275,300 | ||
Long-term Line of Credit | $ 133,200 | 133,200 | |
Fixed Rate Debt | |||
Debt Instrument [Line Items] | |||
Debt Instrument Weighted Average Years to Maturity | 4 years 4 months 24 days | ||
Fixed Rate Debt | Mortgages Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Weighted Average Years to Maturity | 5 years 9 months 18 days | ||
Fixed Rate Debt | Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Weighted Average Years to Maturity | 2 years 6 months | ||
Fixed Rate Debt | United Dominion Reality, L.P. | General Partner | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | $ 285,800 | 285,800 | |
Fixed Rate Debt | United Dominion Reality, L.P. | Operating Partnership | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | $ 133,200 | $ 133,200 | |
Fixed Rate Debt | United Dominion Reality, L.P. | Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate during the period ended | 5.28% | ||
Fixed Rate Debt | United Dominion Reality, L.P. | Line Of Credit [Member] | Operating Partnership | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate during the period ended | 5.28% | ||
Variable Rate Debt | Tax Exempt Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Weighted Average Years to Maturity | 5 years 8 months 12 days | ||
Variable Rate Debt | Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Weighted Average Years to Maturity | 1 year 4 months 24 days | ||
Variable Rate Debt | United Dominion Reality, L.P. | General Partner | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | $ 29,000 | $ 29,000 | |
Variable Rate Debt | United Dominion Reality, L.P. | Operating Partnership | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | $ 0 | $ 0 | |
Variable Rate Debt | United Dominion Reality, L.P. | Mortgages Notes Payable [Member] | Operating Partnership | |||
Debt Instrument [Line Items] | |||
Interest rate at the end of the period | 1.52% | 1.52% |
Debt (UNITED DOMINION REALTY,92
Debt (UNITED DOMINION REALTY, L.P.) - Maturities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||
2,017 | $ 242,228 | $ 242,228 | |||
2,018 | 333,670 | 333,670 | |||
2,019 | 357,153 | 357,153 | |||
2,020 | 498,076 | 498,076 | |||
2,021 | 351,117 | 351,117 | |||
2,022 | 401,157 | 401,157 | |||
2,023 | 41,245 | 41,245 | |||
2,024 | 315,644 | 315,644 | |||
2,025 | 427,600 | 427,600 | |||
2,026 | 350,000 | 350,000 | |||
Thereafter | 327,000 | 327,000 | |||
Long-term Debt, Gross | 3,644,890 | 3,644,890 | |||
Non-cash (a) | 10,242 | 10,242 | |||
Total | 806,647 | 806,647 | $ 1,130,858 | ||
United Dominion Reality, L.P. | |||||
Debt Instrument [Line Items] | |||||
2,020 | 133,204 | 133,204 | |||
Thereafter | 27,000 | 27,000 | |||
Long-term Debt, Gross | 160,204 | 160,204 | |||
Non-cash (a) | 440 | 440 | |||
Total | 159,764 | 159,764 | $ 433,974 | ||
Amortization of deferred financing costs | 100 | $ 100 | 200 | $ 300 | |
United Dominion Reality, L.P. | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
2,020 | 133,204 | 133,204 | |||
Long-term Debt, Gross | 133,204 | 133,204 | |||
Non-cash (a) | 358 | 358 | |||
Total | 132,846 | 132,846 | |||
United Dominion Reality, L.P. | Tax Exempt Notes Payable [Member] | |||||
Debt Instrument [Line Items] | |||||
Thereafter | 27,000 | 27,000 | |||
Long-term Debt, Gross | 27,000 | 27,000 | |||
Non-cash (a) | 82 | 82 | |||
Total | $ 26,918 | $ 26,918 |
Debt (UNITED DOMINION REALTY,93
Debt (UNITED DOMINION REALTY, L.P.) - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||
Debt Instrument Weighted Average Years to Maturity | 5 years 1 month 6 days | ||||
Amortization of Financing Costs | $ 1,100 | $ 1,200 | $ 2,100 | $ 2,400 | |
Long-term Commercial Paper | 500,000 | 500,000 | |||
Long-term Line of Credit | $ 3,300 | 3,300 | $ 2,900 | ||
Interest rate at end of the period | 3.67% | ||||
Unamortized fair market adjustment | $ 9,700 | 9,700 | 11,200 | ||
Unsecured Commercial Bank Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Total revolving credit facility | $ 2,000,000 | $ 2,000,000 | |||
Debt Instrument, Maturity Date | Jan. 31, 2020 | ||||
Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Weighted Average Years to Maturity | 4 years 4 months 24 days | ||||
Secured debt including debt on real estate held for sale | $ 683,217 | $ 683,217 | 756,151 | ||
Interest rate at end of the period | 4.39% | ||||
Fannie Mae | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | $ 314,870 | 314,870 | 636,782 | ||
Line Of Credit [Member] | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Weighted Average Years to Maturity | 2 years 6 months | ||||
Secured debt including debt on real estate held for sale | $ 285,836 | $ 285,836 | 355,836 | ||
Interest rate at end of the period | 4.86% | 4.86% | |||
Debt Instrument, Maturity Date Range, End | Jul. 1, 2020 | ||||
Line Of Credit [Member] | Variable Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Weighted Average Years to Maturity | 1 year 4 months 24 days | ||||
Secured debt including debt on real estate held for sale | $ 29,034 | $ 29,034 | 280,946 | ||
Interest rate at end of the period | 2.61% | 2.61% | |||
Mortgages Notes Payable [Member] | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Weighted Average Years to Maturity | 5 years 9 months 18 days | ||||
Secured debt including debt on real estate held for sale | $ 399,315 | $ 399,315 | |||
Interest rate at end of the period | 4.04% | ||||
Tax Exempt Notes Payable [Member] | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Maturity Date Range, Start | Aug. 1, 2019 | ||||
Debt Instrument, Maturity Date Range, End | Mar. 1, 2032 | ||||
Tax Exempt Notes Payable [Member] | Variable Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Weighted Average Years to Maturity | 5 years 8 months 12 days | ||||
Secured debt including debt on real estate held for sale | $ 94,700 | $ 94,700 | 94,700 | ||
Interest rate at end of the period | 1.54% | ||||
4.25% Medium-Term Notes due June 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Weighted Average Years to Maturity | 10 months 24 days | ||||
Interest rate at end of the period | 4.25% | ||||
Unamortized fair market adjustment | $ 394 | 394 | 608 | ||
3.70% Term Notes Due October 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Weighted Average Years to Maturity | 3 years 3 months 18 days | ||||
Interest rate at end of the period | 3.70% | ||||
Unamortized fair market adjustment | $ 26 | 26 | 30 | ||
4.63% Medium-Term Notes due January 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Weighted Average Years to Maturity | 4 years 6 months | ||||
Interest rate at end of the period | 4.63% | ||||
Unamortized fair market adjustment | $ 1,625 | 1,625 | 1,805 | ||
3.75 Medium-Term Notes Due July 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Weighted Average Years to Maturity | 7 years | ||||
Interest rate at end of the period | 3.75% | ||||
Unamortized fair market adjustment | $ 730 | 730 | 782 | ||
4.00% Medium-Term Note due October 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Weighted Average Years to Maturity | 8 years 3 months 18 days | ||||
Interest rate at end of the period | 4.00% | ||||
Unamortized fair market adjustment | $ 568 | 568 | 602 | ||
2.95% Medium-Term Note due September 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Weighted Average Years to Maturity | 9 years 2 months 12 days | ||||
Interest rate at end of the period | 2.95% | ||||
3.50 Medium-Term Note due July 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Weighted Average Years to Maturity | 10 years | ||||
Interest rate at end of the period | 3.50% | ||||
Unamortized fair market adjustment | $ 705 | 705 | |||
United Dominion Reality, L.P. | |||||
Debt Instrument [Line Items] | |||||
Long-term Commercial Paper | 500,000 | 500,000 | |||
Long-term Line of Credit | 133,204 | 133,204 | 408,549 | ||
Borrowings outstanding at end of period | 240,000 | 240,000 | 0 | ||
United Dominion Reality, L.P. | Line Of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 133,200 | 133,200 | |||
United Dominion Reality, L.P. | Unsecured Revolving Credit Facility due October 2015 [Member] | |||||
Debt Instrument [Line Items] | |||||
Total revolving credit facility | 1,100,000 | 1,100,000 | |||
United Dominion Reality, L.P. | 4.25% Medium-Term Notes due June 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 300,000 | 300,000 | |||
United Dominion Reality, L.P. | Three point seven percent medium term note due October 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 300,000 | 300,000 | |||
United Dominion Reality, L.P. | 3.70% Term Notes Due October 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 350,000 | 350,000 | |||
United Dominion Reality, L.P. | 4.63% Medium-Term Notes due January 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 400,000 | 400,000 | |||
United Dominion Reality, L.P. | 3.75 Medium-Term Notes Due July 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 300,000 | 300,000 | |||
United Dominion Reality, L.P. | 4.00% Medium-Term Note due October 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 300,000 | 300,000 | |||
United Dominion Reality, L.P. | 2.95% Medium-Term Note due September 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 300,000 | 300,000 | |||
United Dominion Reality, L.P. | 3.50 Medium-Term Note due July 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 300,000 | $ 300,000 | |||
Mortgages Notes Payable [Member] | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Maturity Date Range, Start | May 1, 2019 | ||||
Debt Instrument, Maturity Date Range, End | Nov. 5, 2026 | ||||
Mortgages Notes Payable [Member] | Mortgages Notes Payable [Member] | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Secured debt including debt on real estate held for sale | 402,996 | ||||
Mortgages Notes Payable [Member] | Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Mortgages Notes Payable [Member] | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Secured debt including debt on real estate held for sale | 399,315 | $ 399,315 | 402,996 | ||
Line Of Credit [Member] | Line Of Credit [Member] | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Maturity Date Range, Start | Dec. 1, 2018 | ||||
Line Of Credit [Member] | Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Line Of Credit [Member] | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Secured debt including debt on real estate held for sale | 285,836 | $ 285,836 | 355,836 | ||
Line Of Credit [Member] | Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Line Of Credit [Member] | Variable Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Secured debt including debt on real estate held for sale | 29,034 | 29,034 | 280,946 | ||
Line Of Credit [Member] | Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | United Dominion Reality, L.P. | |||||
Debt Instrument [Line Items] | |||||
Variable Rate Secured Debt Instruments Fair Value | 163,637 | ||||
Fixed Rate Secured Debt Instruments Fair Value | $ 133,204 | $ 133,204 | $ 244,912 |
Related Party Transactions (U94
Related Party Transactions (UNITED DOMINION REALTY, L.P.) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Limited partnership units owned | 183,350,924 | 183,350,924 | 183,278,698 | ||
United Dominion Reality, L.P. | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Advance from (to) Related Party, | $ 311,900 | $ 311,900 | $ 19,700 | ||
Limited partnership units owned | 183,240,041 | 183,240,041 | 183,167,815 | ||
Interest Expense, Related Party | $ 3,053 | $ 3,053 | $ 6,106 | $ 6,106 | |
Notes payable due to General Partner | 273,334 | $ 273,334 | $ 273,334 | ||
United Dominion Reality, L.P. | Taxable REIT Subsidiaries | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Management Fee Percentage | 2.75% | ||||
United Dominion Reality, L.P. | UDR, Inc. | |||||
Related Party Transaction [Line Items] | |||||
General and administrative expenses allocated to the Operating Partnership by UDR | 3,700 | 2,900 | $ 8,200 | 7,500 | |
Related party management fees | 3,600 | $ 3,700 | 7,100 | $ 7,300 | |
United Dominion Reality, L.P. | UDR, Inc. | Bottom Dollar guaranty | |||||
Related Party Transaction [Line Items] | |||||
Notes payable due to General Partner | $ 273,300 | $ 273,300 | $ 273,300 | ||
Note for 83.2 million [Member] | United Dominion Reality, L.P. | UDR, Inc. | Guaranty related to community acquisition | |||||
Related Party Transaction [Line Items] | |||||
Related party guaranty note payable interest rate | 4.12% | 4.12% | |||
Debt Instrument, Maturity Date Range, End | Aug. 31, 2021 | ||||
Note for 5 million [Member] | United Dominion Reality, L.P. | UDR, Inc. | Guaranty related to community acquisition | |||||
Related Party Transaction [Line Items] | |||||
Related party guaranty note payable interest rate | 5.34% | 5.34% | |||
Debt Instrument, Maturity Date Range, End | Dec. 31, 2023 | ||||
Note for 184.6 million [Member] | United Dominion Reality, L.P. | UDR, Inc. | Guaranty related to community acquisition | |||||
Related Party Transaction [Line Items] | |||||
Debt Instrument, Maturity Date Range, End | Apr. 1, 2026 |
Fair Value of Derivatives and95
Fair Value of Derivatives and Financial Instruments (UNITED DOMINION REALTY, L.P.) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Secured debt instruments - variable rate | |||
Transfer between the levels | $ 0 | $ 0 | |
Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Total assets | 21,667 | 21,667 | $ 24,150 |
Secured debt instruments - variable rate | |||
Total liabilities | 3,650,559 | 3,650,559 | 3,418,079 |
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Total assets | 21,663 | 21,663 | 24,005 |
Secured debt instruments - variable rate | |||
Total liabilities | 3,705,092 | 3,705,092 | 3,463,639 |
Interest rate contracts | Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Derivatives - Interest rate contracts | 4,377 | 4,377 | 4,360 |
Derivative Liability Designated as Hedging Instrument, Fair Value | 413 | ||
Interest rate contracts | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Derivatives - Interest rate contracts | 4,377 | 4,377 | 4,360 |
Derivative Liability Designated as Hedging Instrument, Fair Value | 413 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Total assets | 4,377 | 4,377 | 4,360 |
Secured debt instruments - variable rate | |||
Total liabilities | 413 | ||
Level 2 [Member] | Interest rate contracts | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Derivatives - Interest rate contracts | 4,377 | 4,377 | 4,360 |
Derivative Liability Designated as Hedging Instrument, Fair Value | 413 | ||
Level 3 [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Total assets | 17,286 | 17,286 | 19,645 |
Secured debt instruments - variable rate | |||
Total liabilities | 3,705,092 | 3,705,092 | 3,463,226 |
United Dominion Reality, L.P. | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Derivatives - Interest rate contracts | 1 | ||
United Dominion Reality, L.P. | Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Total assets | 1 | ||
Secured debt instruments - variable rate | |||
Total liabilities | 160,204 | 160,204 | 435,549 |
United Dominion Reality, L.P. | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Total assets | 1 | ||
Secured debt instruments - variable rate | |||
Total liabilities | 164,739 | 164,739 | 442,301 |
United Dominion Reality, L.P. | Interest rate contracts | Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Derivatives - Interest rate contracts | 1 | ||
United Dominion Reality, L.P. | Interest rate contracts | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Derivatives - Interest rate contracts | 1 | ||
United Dominion Reality, L.P. | Tax Exempt Notes Payable [Member] | Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Secured debt instruments - variable rate | |||
Secured debt instruments - variable rate | 27,000 | 27,000 | 27,000 |
United Dominion Reality, L.P. | Tax Exempt Notes Payable [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Secured debt instruments - variable rate | |||
Secured debt instruments - variable rate | 27,000 | 27,000 | 27,000 |
United Dominion Reality, L.P. | Line Of Credit [Member] | Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Secured debt instruments - fixed rate | |||
Secured debt instruments - fixed rate | 133,204 | 133,204 | 244,912 |
Secured debt instruments - variable rate | |||
Secured debt instruments - variable rate | 163,637 | ||
United Dominion Reality, L.P. | Line Of Credit [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Secured debt instruments - fixed rate | |||
Secured debt instruments - fixed rate | 137,739 | 137,739 | 251,664 |
Secured debt instruments - variable rate | |||
Secured debt instruments - variable rate | 163,637 | ||
United Dominion Reality, L.P. | Level 2 [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Total assets | 1 | ||
United Dominion Reality, L.P. | Level 2 [Member] | Interest rate contracts | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | |||
Derivatives - Interest rate contracts | 1 | ||
United Dominion Reality, L.P. | Level 3 [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Secured debt instruments - variable rate | |||
Total liabilities | 164,739 | 164,739 | 442,301 |
United Dominion Reality, L.P. | Level 3 [Member] | Tax Exempt Notes Payable [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Secured debt instruments - variable rate | |||
Secured debt instruments - variable rate | 27,000 | 27,000 | 27,000 |
United Dominion Reality, L.P. | Level 3 [Member] | Line Of Credit [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Secured debt instruments - fixed rate | |||
Secured debt instruments - fixed rate | 137,739 | 137,739 | 251,664 |
Secured debt instruments - variable rate | |||
Secured debt instruments - variable rate | 163,637 | ||
Line Of Credit [Member] | Fixed Rate Debt | Line Of Credit [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Secured debt instruments - fixed rate | |||
Secured debt instruments - fixed rate | 292,860 | 292,860 | 365,693 |
Line Of Credit [Member] | Fixed Rate Debt | Level 3 [Member] | Line Of Credit [Member] | Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Secured debt instruments - fixed rate | |||
Secured debt instruments - fixed rate | $ 292,860 | $ 292,860 | $ 365,693 |
Derivatives and Hedging Activ96
Derivatives and Hedging Activity (UNITED DOMINION REALTY, L.P.) - Interest Rate Derivatives (Details) $ in Thousands | Jun. 30, 2017USD ($)instrument |
Interest rate swaps [Member] | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Number instruments | instrument | 4 |
Outstanding interest rate derivatives designated as hedging instruments | |
Notional | $ 315,000 |
Interest rate caps [Member] | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Number instruments | instrument | 1 |
Outstanding interest rate derivatives designated as hedging instruments | |
Notional | $ 65,197 |
Interest rate caps [Member] | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Number instruments | instrument | 3 |
Outstanding interest rate derivatives designated as hedging instruments | |
Notional | $ 271,076 |
United Dominion Reality, L.P. | Designated as Hedging Instrument | Cash Flow Hedging | |
Outstanding interest rate derivatives designated as hedging instruments | |
Derivatives | $ 0 |
United Dominion Reality, L.P. | Interest rate caps [Member] | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Number instruments | instrument | 3 |
Outstanding interest rate derivatives designated as hedging instruments | |
Notional | $ 170,074 |
Derivatives and Hedging Activ97
Derivatives and Hedging Activity (UNITED DOMINION REALTY, L.P.) - Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Interest rate contracts | Other assets | Designated as Hedging Instrument | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative Asset Designated as Hedging Instrument, Fair Value | $ 4,377 | $ 4,359 |
Interest rate contracts | Other assets | Not Designated as Hedging Instrument | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative Asset Not Designated as Hedging Instrument, Fair Value | 1 | |
Interest rate contracts | Other liabilities | Designated as Hedging Instrument | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative Liability Designated as Hedging Instrument, Fair Value | 413 | |
United Dominion Reality, L.P. | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative Asset Designated as Hedging Instrument, Fair Value | 1 | |
United Dominion Reality, L.P. | Interest rate contracts | Other assets | Not Designated as Hedging Instrument | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative Asset Not Designated as Hedging Instrument, Fair Value | $ 1 |
Derivatives and Hedging Activ98
Derivatives and Hedging Activity (UNITED DOMINION REALTY, L.P.) - Effectiveness (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized holding gain/(loss) | $ (507) | $ (1,963) | $ 126 | $ (2,774) |
Amount of Gain or (Loss) Recognized in Income on Derivative | (3) | (1) | (3) | |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | (100) | 0 | (100) | 0 |
United Dominion Reality, L.P. | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized holding gain/(loss) | (1) | (3) | ||
Amount of Gain or (Loss) Recognized in Income on Derivative | (100) | (100) | (100) | (100) |
Interest rate contracts | Other income/(expense) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | 100 | 100 | 100 | 100 |
Interest rate contracts | Interest expense | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (308) | (943) | (1,073) | (1,878) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | (82) | (136) | ||
Interest rate contracts | United Dominion Reality, L.P. | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized holding gain/(loss) | (1) | (3) | ||
Interest rate contracts | United Dominion Reality, L.P. | Other income/(expense) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | (3) | (1) | (3) | |
Interest rate contracts | United Dominion Reality, L.P. | Interest expense | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ (2) | $ (3) | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ (52) | $ (106) |
Derivatives and Hedging Activ99
Derivatives and Hedging Activity (UNITED DOMINION REALTY, L.P.) - Offsetting (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Offsetting Derivative Assets [Abstract] | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheets (a) | $ 4,377 | $ 4,360 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | 221 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 | 0 |
Net Amount | 4,377 | 4,139 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 413 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets (b) | 413 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | 221 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 | 0 |
Net Amount | 192 | |
United Dominion Reality, L.P. | ||
Offsetting Derivative Assets [Abstract] | ||
Derivative Asset Designated as Hedging Instrument, Fair Value | 1 | |
Net Amounts of Assets Presented in the Consolidated Balance Sheets (a) | 1 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | $ 0 | 0 |
Net Amount | $ 1 |
Derivatives and Hedging Acti100
Derivatives and Hedging Activity (UNITED DOMINION REALTY, L.P.) - Other information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Entity Information [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 100 | $ 0 | $ 100 | $ 0 | |
Estimated additional accumulated other comprehensive Income/(Loss) transferred to interest expense | 100 | 100 | |||
Losses in the fair value of derivatives not designated in hedging relationships | $ 3 | 1 | $ 3 | ||
Payment required to pay for contract termination | 4,400 | 4,400 | |||
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | $ 0 | ||
United Dominion Reality, L.P. | |||||
Entity Information [Line Items] | |||||
Ineffectiveness on Interest Rate Fair Value Hedges is Immaterial | 0 | 0 | |||
Estimated additional accumulated other comprehensive Income/(Loss) transferred to interest expense | 0 | 0 | |||
Losses in the fair value of derivatives not designated in hedging relationships | 100 | $ 100 | 100 | $ 100 | |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | $ 0 | ||
United Dominion Reality, L.P. | Minimum | |||||
Entity Information [Line Items] | |||||
Fair value of derivatives in a net asset position | 100 | ||||
Interest expense | Minimum | |||||
Entity Information [Line Items] | |||||
Losses in the fair value of derivatives not designated in hedging relationships | 100 | 100 | |||
Interest rate contracts | Interest expense | Cash Flow Hedging | |||||
Entity Information [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 82 | 136 | |||
Interest rate contracts | Interest expense | Cash Flow Hedging | United Dominion Reality, L.P. | |||||
Entity Information [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 52 | $ 106 |
Capital Structure (UNITED DO101
Capital Structure (UNITED DOMINION REALTY, L.P.) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017USD ($)$ / itemshares | Dec. 31, 2016USD ($)shares | |
Limited Partners' Capital Account [Line Items] | ||
Limited partnership units owned | 183,350,924 | 183,278,698 |
Long Term Incentive Plan Operating Partnership Units Vesting, Shares | 72,226 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ | $ 967,797 | $ 909,482 |
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | $ | $ 967,797 | $ 909,482 |
LTIP Units | Minimum | ||
Limited Partners' Capital Account [Line Items] | ||
Vesting period | 2 years | |
LTIP Units One | Non-employee Director | ||
Limited Partners' Capital Account [Line Items] | ||
Vesting period | 1 year | |
LTIP Units Two | Employee Director | Minimum | ||
Limited Partners' Capital Account [Line Items] | ||
Vesting period | 1 year | |
LTIP Units Two | Employee Director | Maximum | ||
Limited Partners' Capital Account [Line Items] | ||
Vesting period | 3 years | |
United Dominion Reality, L.P. | ||
Limited Partners' Capital Account [Line Items] | ||
General Partnership units outstanding | 110,883 | 110,883 |
Limited partnership units owned | 183,240,041 | 183,167,815 |
Limited Partners' Capital Account, Required Period To Be Outstanding Before Unit is Redeemable | 1 year | |
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | $ | $ 355,300 | $ 330,100 |
UDR, Inc. | ||
Limited Partners' Capital Account [Line Items] | ||
Limited partnership units owned | 174,122,808 | 174,119,201 |
Percentage of units | 95.00% | 95.10% |
Class A Limited Partner | ||
Limited Partners' Capital Account [Line Items] | ||
Cumulative, annual, non-compounded preferred return on Class A Partnership units | 8.00% | |
Value of Class A Partnership units (in dollars per unit) | $ / item | 16.61 | |
Class A Limited Partner | United Dominion Reality, L.P. | ||
Limited Partners' Capital Account [Line Items] | ||
Limited partnership units owned | 1,873,332 | |
Class A Limited Partner | UDR, Inc. | ||
Limited Partners' Capital Account [Line Items] | ||
Limited partnership units owned | 121,661 | 121,661 |
Non-affiliated Partners | ||
Limited Partners' Capital Account [Line Items] | ||
Limited partnership units owned | 7,365,562 | 7,296,943 |
Long Term Incentive Plan Operating Partnership Units Vesting, Shares | 72,226 | |
Partners' Capital Account, Units, Redeemed | (3,607) | |
Non-affiliated Partners | United Dominion Reality, L.P. | ||
Limited Partners' Capital Account [Line Items] | ||
Limited partnership units owned | 9,117,233 | 9,048,614 |
Percentage of units | 5.00% | 4.90% |
Non-affiliated Partners | Class A Limited Partner | ||
Limited Partners' Capital Account [Line Items] | ||
Limited partnership units owned | 1,751,671 | 1,751,671 |
Limited Partner | United Dominion Reality, L.P. | ||
Limited Partners' Capital Account [Line Items] | ||
General Partnership units outstanding | 174,233,691 | |
Limited partnership units owned | 174,233,691 | |
Percentage of units | 95.00% | |
Limited Partner | UDR, Inc. | ||
Limited Partners' Capital Account [Line Items] | ||
Limited partnership units owned | 174,001,147 | 173,997,540 |
Partners' Capital Account, Units, Redeemed | 3,607 | |
General Partner | UDR, Inc. | ||
Limited Partners' Capital Account [Line Items] | ||
Limited partnership units owned | 110,883 | 110,883 |
Reportable Segments (UNITED 102
Reportable Segments (UNITED DOMINION REALTY, L.P.) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segmentitem | Jun. 30, 2016USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Equity Method Investments | $ 843,167 | $ 843,167 | $ 827,025 | |||
Same Store Communities | item | 36,540 | 35,689 | ||||
Reconciling items: | ||||||
Property management | (6,728) | $ (6,494) | $ (13,363) | $ (12,873) | ||
Other operating expenses | (2,369) | (1,892) | (4,060) | (3,644) | ||
Segment Reporting Reconciling Items Cost of Services Depreciation and Amortization | (108,450) | (105,937) | (213,482) | (211,276) | ||
General and administrative | (11,434) | (10,835) | (24,509) | (24,679) | ||
Casualty-related (charges)/recoveries, net | (1,191) | (1,629) | (1,693) | (1,629) | ||
Income/(loss) from unconsolidated entities | (1,426) | 325 | 9,772 | 1,004 | ||
Interest expense | (33,866) | (30,678) | (64,405) | (61,782) | ||
Net (income)/loss attributable to noncontrolling interests | (51) | (8) | (142) | (314) | ||
Net income/(loss) attributable to OP unitholders | 10,157 | 17,946 | 36,124 | 28,339 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 9,888,920 | 9,888,920 | 9,615,753 | |||
Real Estate Investment Property, Accumulated Depreciation | 3,131,603 | 3,131,603 | 2,923,072 | |||
Accumulated depreciation | (3,132,031) | (3,132,031) | (2,923,625) | |||
Total real estate owned, net of accumulated depreciation | 6,756,889 | 6,756,889 | 6,692,128 | |||
Reconciling items: | ||||||
Cash and cash equivalents | 1,411 | 5,167 | 1,411 | 5,167 | 2,112 | $ 6,742 |
Restricted cash | 19,602 | 19,602 | 19,994 | |||
Investment in unconsolidated entities | 843,167 | 843,167 | 827,025 | |||
Other assets | 129,575 | 129,575 | 118,535 | |||
Total assets | 7,767,934 | $ 7,767,934 | 7,679,584 | |||
Reportable Segment (Textual) [Abstract] | ||||||
Number of reportable segments | segment | 2 | |||||
Time to maintain percent occupancy to be considered a community | 3 months | |||||
Same Store Communities Western Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 83,222 | 79,566 | $ 165,442 | 157,973 | ||
Reportable apartment home segment NOI | (62,658) | (58,819) | (124,552) | (117,963) | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 2,954,555 | 2,954,555 | 2,938,073 | |||
Same Store Communities Mid-Atlantic Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 57,199 | 55,586 | 104,620 | 101,288 | ||
Reportable apartment home segment NOI | (40,106) | (39,039) | (72,928) | (69,450) | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 2,434,358 | 2,434,358 | 2,427,948 | |||
Same Store Communities Northeast Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 37,732 | 36,749 | 75,653 | 73,209 | ||
Reportable apartment home segment NOI | (27,151) | (26,983) | (54,052) | (53,343) | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 1,860,934 | 1,860,934 | 1,857,193 | |||
Same Store Communities Southeastern Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 29,149 | 27,702 | 57,806 | 54,839 | ||
Reportable apartment home segment NOI | (20,059) | (19,081) | (39,720) | (37,877) | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 752,902 | 752,902 | 746,762 | |||
Same Store Communities Southwestern Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 10,685 | 10,237 | 21,365 | 20,363 | ||
Reportable apartment home segment NOI | (6,613) | (6,344) | (13,293) | (12,676) | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 286,145 | 286,145 | 283,260 | |||
Non-Mature communities/Other [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 26,671 | 26,328 | 61,043 | 60,453 | ||
Reportable apartment home segment NOI | (18,036) | (17,049) | (41,561) | (40,140) | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 1,600,026 | 1,600,026 | 1,362,517 | |||
Reportable Segment (Textual) [Abstract] | ||||||
Capital expenditures and development | 1,400 | 2,300 | 2,200 | 5,000 | ||
Total Communities [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 244,658 | 236,168 | 485,929 | 468,125 | ||
Reportable apartment home segment NOI | (174,623) | (167,315) | (346,106) | $ (331,449) | ||
United Dominion Reality, L.P. | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity Method Investments | 94,741 | $ 94,741 | 112,867 | |||
Same Store Communities | item | 15,058 | 15,058 | ||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 104,088 | 100,892 | $ 206,693 | $ 199,678 | ||
Reportable apartment home segment NOI | 77,014 | 74,658 | 152,077 | 147,210 | ||
Reconciling items: | ||||||
Property management | (2,862) | (2,775) | (5,684) | (5,492) | ||
Other operating expenses | (2,128) | (1,519) | (3,676) | (3,019) | ||
Segment Reporting Reconciling Items Cost of Services Depreciation and Amortization | (39,231) | (37,053) | (76,110) | (73,844) | ||
General and administrative | (4,408) | (3,844) | (9,627) | (9,265) | ||
Casualty-related (charges)/recoveries, net | (1,191) | (465) | (1,744) | (465) | ||
Income/(loss) from unconsolidated entities | (4,350) | (10,030) | (9,774) | (23,417) | ||
Interest expense | (11,652) | (7,578) | (20,263) | (15,183) | ||
Net (income)/loss attributable to noncontrolling interests | (343) | (350) | (693) | (694) | ||
Net income/(loss) attributable to OP unitholders | 10,849 | 11,044 | 24,506 | 15,831 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 3,694,723 | 3,694,723 | 3,674,704 | |||
Real Estate Investment Property, Accumulated Depreciation | 1,482,993 | 1,482,993 | 1,408,815 | |||
Accumulated depreciation | (1,482,993) | (1,482,993) | (1,408,815) | |||
Total real estate owned, net of accumulated depreciation | 2,211,730 | 2,211,730 | 2,265,889 | |||
Reconciling items: | ||||||
Cash and cash equivalents | 85 | 1,535 | 85 | 1,535 | 756 | $ 3,103 |
Restricted cash | 12,210 | 12,210 | 11,694 | |||
Investment in unconsolidated entities | 94,741 | 94,741 | 112,867 | |||
Other assets | 30,523 | 30,523 | 24,329 | |||
Total assets | 2,349,289 | $ 2,349,289 | 2,415,535 | |||
Reportable Segment (Textual) [Abstract] | ||||||
Number of reportable segments | segment | 2 | |||||
United Dominion Reality, L.P. | Same-Store [Member] | ||||||
Reportable Segment (Textual) [Abstract] | ||||||
Capital expenditures and development | 11,600 | 11,700 | $ 19,600 | 17,000 | ||
United Dominion Reality, L.P. | Same Store Communities Western Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 51,267 | 48,604 | 101,748 | 96,239 | ||
Reportable apartment home segment NOI | 38,961 | 36,787 | 77,406 | 72,946 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 1,608,744 | 1,608,744 | 1,596,815 | |||
United Dominion Reality, L.P. | Same Store Communities Mid-Atlantic Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 14,798 | 14,407 | 29,546 | 28,574 | ||
Reportable apartment home segment NOI | 10,134 | 9,887 | 20,229 | 19,249 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 652,533 | 652,533 | 655,693 | |||
United Dominion Reality, L.P. | Same Store Communities Northeast Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 13,545 | 13,203 | 27,104 | 26,209 | ||
Reportable apartment home segment NOI | 10,473 | 10,407 | 20,604 | 20,463 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 676,258 | 676,258 | 674,928 | |||
United Dominion Reality, L.P. | Same Store Communities Southeastern Region [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 12,452 | 11,918 | 24,723 | 23,615 | ||
Reportable apartment home segment NOI | 8,544 | 8,165 | 16,827 | 16,208 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 329,987 | 329,987 | 328,729 | |||
United Dominion Reality, L.P. | Non-Mature communities/Other [Member] | ||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||
Reportable apartment home segment rental income | 12,026 | 12,760 | 23,572 | 25,041 | ||
Reportable apartment home segment NOI | 8,902 | 9,412 | 17,011 | 18,344 | ||
Reportable apartment home segment assets: | ||||||
Total segment assets | 427,201 | 427,201 | $ 418,539 | |||
Reportable Segment (Textual) [Abstract] | ||||||
Capital expenditures and development | $ 600 | $ 400 | $ 1,000 | $ 700 |