Table of Contents
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
For the transition period from to |
Commission file number 333-156002-01 (United Dominion Realty, L.P.)
United Dominion Realty, L.P.
Maryland (UDR, Inc.) | 54-0857512 | |
Delaware (United Dominion Realty, L.P.) | 54-1776887 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
(Address of principal executive offices) (zip code)
Registrant’s telephone number, including area code: (720) 283-6120
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock, $0.01 par value (UDR, Inc.) | New York Stock Exchange | |
6.75% Series G Cumulative Redeemable Preferred Stock (UDR, Inc.) | New York Stock Exchange |
(Title of Class)
UDR, Inc. | Yesþ | Noo | ||||
United Dominion Realty, L.P. | Yeso | Noþ |
UDR, Inc. | Yeso | Noþ | ||||
United Dominion Realty, L.P. | Yeso | Noþ |
UDR, Inc. | Yesþ | Noo | ||||
United Dominion Realty, L.P. | Yesþ | Noo |
UDR, Inc. | Yesþ | Noo | ||||
United Dominion Realty, L.P. | Yesþ | Noo |
UDR, Inc.: | ||||||
Large accelerated filerþ | Accelerated filero | Non-accelerated filero | Smaller reporting companyo | |||
(Do not check if a smaller reporting company) |
United Dominion Realty, L.P.: | ||||||
Large accelerated filero | Accelerated filero | Non-accelerated filerþ | Smaller reporting companyo | |||
(Do not check if a smaller reporting company) |
UDR, Inc. | Yeso | Noþ | ||||
United Dominion Realty, L.P. | Yeso | Noþ |
PAGE | ||||||||
2 | ||||||||
15 | ||||||||
28 | ||||||||
29 | ||||||||
31 | ||||||||
31 | ||||||||
32 | ||||||||
35 | ||||||||
38 | ||||||||
66 | ||||||||
66 | ||||||||
67 | ||||||||
67 | ||||||||
68 | ||||||||
69 | ||||||||
69 | ||||||||
69 | ||||||||
69 | ||||||||
70 | ||||||||
EX-10.42 | ||||||||
EX-10.43 | ||||||||
EX-12.1 | ||||||||
EX-12.2 | ||||||||
EX-21 | ||||||||
EX-23.1 | ||||||||
EX-23.2 | ||||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-31.3 | ||||||||
EX-31.4 | ||||||||
EX-32.1 | ||||||||
EX-32.2 | ||||||||
EX-32.3 | ||||||||
EX-32.4 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
Table of Contents
2
Table of Contents
3
Table of Contents
Dividends | ||||||||
Declared in | Dividends Paid | |||||||
2011 | in 2011 | |||||||
First Quarter | $ | 0.185 | $ | 0.185 | ||||
Second Quarter | 0.200 | 0.185 | ||||||
Third Quarter | 0.200 | 0.200 | ||||||
Fourth Quarter | 0.215 | 0.200 | ||||||
Total | $ | 0.800 | $ | 0.770 | ||||
• | own and operate apartments in markets that have the best growth prospects based on favorable job formation and low home affordability, thus enhancing stability and predictability of returns to our stockholders; |
• | manage real estate cycles by taking an opportunistic approach to buying, selling, renovating, and developing apartment communities; |
• | empower site associates to manage our communities efficiently and effectively; |
• | measure and reward associates based on specific performance targets; and |
• | manage our capital structure to help enhance predictability of earnings and dividends. |
4
Table of Contents
• | We acquired eight operating communities with 3,161 homes located in New York, New York; San Francisco, California; Boston, Massachusetts; and Metropolitan D.C. markets for $1.5 billion. We also acquired three parcels of land for $34.3 million. |
• | We entered into a consolidated joint venture to acquire and redevelop a commercial property into a 173- apartment home community in Orange County, California. We also entered into two unconsolidated joint ventures to develop a 263- apartment home community in San Diego, California and a 256- apartment home community in College Park, Maryland. |
• | One of our unconsolidated joint ventures acquired two operating communities with 509 homes in the Washington, D.C. market for $237.8 million. |
• | We repaid $336.0 million of secured debt. The $336.0 million of secured debt includes $197.5 million of construction loans, repayment of $102.8 million of credit facilities, $22.4 million of mortgage payments, and repayment of $13.3 million in tax exempt bonds. |
• | Certain holders submitted their outstanding 4.00% Convertible Senior Notes due 2035 to the Company for repurchase. As a result, we repurchased notes with a notional value of $10.8 million, representing approximately 6.44% of the $167.8 million in aggregate principal amount outstanding, and expensed $207,000 of unamortized financing costs during the three months ended March 31, 2011. On March 2, 2011 the Company called the remaining outstanding notes with a notional value of $156.9 million. The notes were redeemed on April 4, 2011 and unamortized financing costs of $3.0 million were written off. |
• | We issued $300 million aggregate principal amount of 4.250% senior unsecured notes due June 2018 under our existing shelf registration statement. Interest is payable semiannually beginning in December 2011. The notes were priced at 98.988% of the principal amount plus accrued interest from May 23, 2011 to yield 4.419% to maturity. The notes are fully and unconditionally guaranteed by the Operating Partnership. |
• | We repaid $97.1 million on the maturity of our 3.625% Convertible Senior Notes due September 2011. |
• | We entered into a new $900 million unsecured revolving credit facility, replacing the Company’s $600 million credit facility. The Operating Partnership issued a guarantee in connection with the new facility, similar to the guarantee it issued under the prior facility. The new credit facility has an initial term of four years and includes a one-year extension option, and contains an accordion feature that allows the Company to increase the facility to $1.35 billion. Based on the Company’s current credit ratings, the credit facility carries an interest rate equal to LIBOR plus a spread of 122.5 basis points and a facility fee of 22.5 basis points. In 2011, the Company had net borrowings of $389.3 million on its unsecured revolving credit facilities. |
• | In September 2009, the Company entered into an equity distribution agreement under which the Company may offer and sell up to 15.0 million shares of its common stock over time to or through its sales agents. During the year ended December 31, 2011, we sold 4,395,601 shares of common stock through an equity distribution agreement for aggregate gross proceeds of approximately $104.5 million at a weighted average price per share of $23.78. Aggregate net proceeds from such sales, after deducting related expenses, including commissions paid to the sales agents of approximately $2.1 million, were approximately $102.4 million, and such proceeds were used for general corporate purposes. |
• | We entered into a new equity distribution agreement under which the Company may offer and sell up to 20.0 million shares of its common stock over time to or through its sales agents. During the year ended December 31, 2011, we sold 11,849,079 shares of common stock through this program (of which 419,048 shares were settled subsequent to December 31, 2011) for aggregate gross proceeds of approximately $297.7 million at a weighted average price per share of $25.12. Aggregate net proceeds from such sales, after deducting related expenses, including commissions paid to the sales agents of approximately $6.0 million, were approximately $291.7 million, and such proceeds were used for general corporate purposes. In September 2011, the Company entered into a new equity distribution agreement in connection with filing a new registration statement on Form S-3. The new equity distribution agreement replaced the March 2011 agreement, and no material changes were made to the equity distribution agreement. As of December 31, 2011 8,150,921 shares of common stock may be sold under our equity distribution agreement. |
5
Table of Contents
• | We closed on a public offering of 20,700,000 shares of our common stock, including 2,700,000 shares sold as a result of the underwriters’ exercise of their overallotment option in full at the closing, at a price of $25.00 per share, for net proceeds of approximately $496.3 million after underwriting discounts and commissions and estimated offering expenses. |
• | We repurchased 141,200 shares of our 6.75% Series G Cumulative Redeemable Preferred Stock for $3.6 million, which is $100,000 more than their liquidation value of $3.5 million. |
• | The Operating Partnership acquired four operating communities with 1,833 homes located in the New York, New York and Boston, Massachusetts markets for $761.2 million. In partial consideration for the acquisition of two of these communities, 4,371,845 OP Units were issued. |
• | The Operating Partnership issued a guarantee on $300 million of medium-term notes due June 2018 issued by UDR. |
• | The Operating Partnership issued a guarantee in conjunction with a $900 million unsecured revolving credit facility entered into by UDR. The facility replaced the General Partner’s $600 million credit facility, which the Operating Partnership had previously guaranteed. |
1. | Strengthen quality of our portfolio | ||
2. | Grow our cash flow to support dividend growth | ||
3. | Increase our balance sheet strength and flexibility | ||
4. | Great place to work and live |
6
Table of Contents
• | population growth, cost of alternative housing, overall potential for economic growth and the tax and regulatory environment of the community in which the property is located; |
• | geographic location, including proximity to jobs, entertainment, transportation, and our existing communities which can deliver significant economies of scale; |
• | construction quality, condition and design of the community; |
• | current and projected cash flow of the property and the ability to increase cash flow; |
• | potential for capital appreciation of the property; |
• | ability to increase the value and profitability of the property through operations and redevelopment; |
• | terms of resident leases, including the potential for rent increases; |
• | occupancy and demand by residents for properties of a similar type in the vicinity; |
• | prospects for liquidity through sale, financing, or refinancing of the property; and |
• | competition from existing multifamily communities and the potential for the construction of new multifamily properties in the area. |
• | current market price for an asset compared to projected economics for that asset; |
• | potential increases in new construction in the market area; |
• | areas where the economy is not expected to grow substantially; |
• | markets where we do not intend to establish a long-term concentration; and |
• | operating efficiencies. |
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Homes acquired | 3,161 | 1,374 | 289 | 4,558 | 2,671 | |||||||||||||||
Homes disposed | 4,488 | 149 | — | 25,684 | 7,125 | |||||||||||||||
Homes owned at December 31 | 47,343 | 48,553 | 45,913 | 44,388 | 65,867 | |||||||||||||||
Total real estate owned, at cost | $ | 8,074,471 | $ | 6,881,347 | $ | 6,315,047 | $ | 5,831,753 | $ | 5,956,481 |
7
Table of Contents
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Homes acquired | 1,833 | — | — | 3,346 | 943 | |||||||||||||||
Homes disposed | 2,024 | — | — | 16,960 | 4,631 | |||||||||||||||
Homes owned at December 31 | 23,160 | 23,351 | 23,351 | 23,351 | 36,965 | |||||||||||||||
Total real estate owned, at cost | $ | 4,205,298 | $ | 3,706,184 | $ | 3,640,888 | $ | 3,569,239 | $ | 2,685,249 |
Number of | Completed | Cost to | Budgeted | Estimated | Expected | |||||||||||||||||||
Apartment | Apartment | Date | Cost | Cost | Completion | |||||||||||||||||||
Homes | Homes | (in thousands) | (in thousands) | Per Home | Date | |||||||||||||||||||
Savoye2 (Phase II of Vitruvian Park) Addison, TX | 347 | 145 | $ | 66,707 | $ | 69,000 | $ | 198,847 | 1Q12 | |||||||||||||||
Belmont Townhomes Dallas, TX | 13 | — | 1,947 | 4,175 | 321,154 | 2Q12 | ||||||||||||||||||
2400 14th Street Washington, DC | 255 | — | 64,899 | 126,100 | 494,510 | 4Q12 | ||||||||||||||||||
Village at Bella Terra Huntington Beach, CA | 467 | — | 32,202 | 150,000 | 300,000 | 2Q13 | ||||||||||||||||||
Mission Bay San Francisco, CA | 315 | — | 37,679 | 139,600 | 443,175 | 3Q13 | ||||||||||||||||||
Phase III of Vitruvian Park Addison, TX | 391 | — | 18,518 | 98,350 | 251,535 | 3Q13 | ||||||||||||||||||
Los Alisos (formerly Mission Viejo) Mission Viejo, CA | 320 | — | 26,794 | 87,050 | 272,031 | 4Q13 | ||||||||||||||||||
2,108 | 145 | $ | 248,746 | $ | 674,275 | $ | 315,168 | |||||||||||||||||
8
Table of Contents
9
Table of Contents
• | We received proceeds of $30.7 million from secured debt financings. The $30.7 million includes $25.7 million in variable rate mortgages and $5.0 million in fixed rate mortgages. |
• | We repaid $336.0 million of secured debt, which includes $197.5 million of construction loans, repayment of $102.8 million of credit facilities, $22.4 million of mortgage payments, and repayment of $13.3 million in tax exempt bonds. |
• | Certain holders submitted their outstanding 4.00% Convertible Senior Notes due 2035 to us for repurchase. As a result, we repurchased notes with a notional value of $10.8 million, representing approximately 6.44% of the $167.8 million in aggregate principal amount outstanding, and expensed $207,000 of unamortized financing costs during the three months ended March 31, 2011. On March 2, 2011, the Company called the remaining outstanding notes with a notional value of $156.9 million. The notes were redeemed on April 4, 2011 and unamortized financing costs of $3.0 million were written off. |
• | In May 2011, we issued $300 million aggregate principal amount of 4.250% senior unsecured notes due June 2018 under its existing shelf registration statement. Interest is payable semiannually beginning in December 2011. The notes were priced at 98.988 % of the principal amount plus accrued interest from May 23, 2011 to yield 4.419% to maturity. The notes are fully and unconditionally guaranteed by the Operating Partnership. |
• | We repaid $97.1 million on our 3.625% Convertible Senior Notes due September 2011. |
• | In October 2011, we entered into a $900 million unsecured revolving credit facility, replacing the Company’s $600 million credit facility. The Operating Partnership issued a guarantee in connection with the new credit facility, similar to the guarantee it issued under the prior facility. The new facility has an initial term of four years and includes a one-year extension option, and contains an accordion feature that allows the Company to increase the facility to $1.35 billion. Based on the Company’s current credit ratings, the credit facility carries an interest rate equal to LIBOR plus a spread of 122.5 basis points and a facility fee of 22.5 basis points. In 2011, the Company had net borrowings of $389.3 million on its unsecured revolving credit facilities. |
• | In September 2009, we entered into an equity distribution agreement under which we may offer and sell up to 15.0 million shares of its common stock over time to or through its sales agents. During the year ended December 31, 2011, we sold 4,395,601 shares of common stock through an equity distribution agreement for aggregate gross proceeds of approximately $104.5 million at a weighted average price per share of $23.78. Aggregate net proceeds from such sales, after deducting related expenses, including commissions paid to the sales agents of approximately $2.1 million, were approximately $102.4 million. |
• | In March 2011, we entered into a new equity distribution agreement under which we may offer and sell up to 20.0 million shares of our common stock over time to or through its sales agents. During the year ended December 31, 2011, we sold 11,849,079 shares of common stock through this program (of which 419,048 shares were settled subsequent to December 31, 2011) for aggregate gross proceeds of approximately $297.7 million at a weighted average price per share of $25.12. Aggregate net proceeds from such sales, after deducting related expenses, including commissions paid to the sales agents of approximately $6.0 million, were approximately $291.7 million. In September 2011, we entered into a new equity distribution agreement in connection with filing a new registration statement on Form S-3. The new equity distribution agreement replaced the March 2011 agreement, and no material changes were made to the equity distribution agreement. |
• | In July 2011, we closed a public offering of 20,700,000 shares of its common stock, including 2,700,000 shares sold as a result of the underwriters’ exercise of their overallotment option in full at the closing, at a price of $25.00 per share, for net proceeds of approximately $496.3 million after underwriting discounts and commissions and estimated offering expenses. |
• | We repurchased 141,200 shares of our 6.75% Series G Cumulative Redeemable Preferred Stock for $3.6 million, which was $100,000 more than their liquidation value of $3.5 million. |
10
Table of Contents
• | a fully integrated organization with property management, development, redevelopment, acquisition, marketing, sales and financing expertise; |
• | scalable operating and support systems, which include automated systems to meet the changing electronic needs of our residents and to effectively focus on our Internet marketing efforts; |
• | purchasing power; |
• | geographic diversification with a presence in 22 markets across the country; and |
• | significant presence in many of our major markets that allows us to be a local operating expert. |
11
Table of Contents
12
Table of Contents
Name | Age | Office | Since | |||||||
Thomas W. Toomey | 51 | Chief Executive Officer, President and Director | 2001 | |||||||
Warren L. Troupe | 58 | Senior Executive Vice President | 2008 | |||||||
Harry G. Alcock | 49 | Senior Vice President — Asset Management | 2010 | |||||||
Jerry A. Davis | 49 | Senior Vice President — Property Operations | 2008 | |||||||
David L. Messenger | 41 | Senior Vice President — Chief Financial Officer | 2008 | |||||||
R. Scott Wesson | 49 | Senior Vice President — Chief Information Officer | 2011 |
13
Table of Contents
14
Table of Contents
• | downturns in the national, regional and local economic conditions, particularly increases in unemployment; | ||
• | declines in mortgage interest rates, making alternative housing more affordable; | ||
• | government or builder incentives which enable first time homebuyers to put little or no money down, making alternative housing options more attractive; | ||
• | local real estate market conditions, including oversupply of, or reduced demand for, apartment homes; | ||
• | declines in the financial condition of our tenants, which may make it more difficult for us to collect rents from some tenants; | ||
• | changes in market rental rates; | ||
• | our ability to renew leases or re-lease space on favorable terms; | ||
• | the timing and costs associated with property improvements, repairs or renovations; | ||
• | declines in household formation; and | ||
• | rent control or stabilization laws, or other laws regulating rental housing, which could prevent us from raising rents to offset increases in operating costs. |
15
Table of Contents
• | a significant portion of the proceeds from our overall property sales may be held by intermediaries in order for some sales to qualify as like-kind exchanges under Section 1031 of the Internal Revenue Code of 1986, as amended, or the “Code,” so that any related capital gain can be deferred for federal income tax purposes. As a result, we may not have immediate access to all of the cash proceeds generated from our property sales; and | ||
• | federal tax laws limit our ability to profit on the sale of communities that we have owned for less than two years, and this limitation may prevent us from selling communities when market conditions are favorable. |
• | we may be unable to obtain financing for acquisitions on favorable terms or at all; | ||
• | even if we are able to finance the acquisition, cash flow from the acquisition may be insufficient to meet our required principal and interest payments on the acquisition; | ||
• | even if we enter into an acquisition agreement for an apartment community, we may be unable to complete the acquisition after incurring certain acquisition-related costs; | ||
• | we may incur significant costs and divert management attention in connection with the evaluation and negotiation of potential acquisitions, including potential acquisitions that we are subsequently unable to complete; |
16
Table of Contents
• | an acquired apartment community may fail to perform as we expected in analyzing our investment, or a significant exposure related to the acquired property may go undetected during our due diligence procedures; | ||
• | when we acquire an apartment community, we may invest additional amounts in it with the intention of increasing profitability, and these additional investments may not produce the anticipated improvements in profitability; and | ||
• | we may be unable to quickly and efficiently integrate acquired apartment communities and new personnel into our existing operations, and the failure to successfully integrate such apartment communities or personnel will result in inefficiencies that could adversely affect our expected return on our investments and our overall profitability. |
• | we may be unable to obtain construction financing for development activities under favorable terms, including but not limited to interest rates, maturity dates and/or loan to value ratios, or at all which could cause us to delay or even abandon potential developments; | ||
• | we may be unable to obtain, or face delays in obtaining, necessary zoning, land-use, building, occupancy and other required governmental permits and authorizations, which could result in increased development costs, could delay initial occupancy dates for all or a portion of a development community, and could require us to abandon our activities entirely with respect to a project for which we are unable to obtain permits or authorizations; | ||
• | yields may be less than anticipated as a result of delays in completing projects, costs that exceed budget and/or higher than expected concessions for lease up and lower rents than pro forma; | ||
• | if we are unable to find joint venture partners to help fund the development of a community or otherwise obtain acceptable financing for the developments, our development capacity may be limited; | ||
• | we may abandon development opportunities that we have already begun to explore, and we may fail to recover expenses already incurred in connection with exploring such opportunities; | ||
• | we may be unable to complete construction and lease-up of a community on schedule, or incur development or construction costs that exceed our original estimates, and we may be unable to charge rents that would compensate for any increase in such costs; | ||
• | occupancy rates and rents at a newly developed community may fluctuate depending on a number of factors, including market and economic conditions, preventing us from meeting our profitability goals for that community; and | ||
• | when we sell to third parties communities or properties that we developed or renovated, we may be subject to warranty or construction defect claims that are uninsured or exceed the limits of our insurance. |
17
Table of Contents
• | inability to accurately evaluate local apartment market conditions and local economies; | ||
• | inability to hire and retain key personnel; | ||
• | lack of familiarity with local governmental and permitting procedures; and | ||
• | inability to achieve budgeted financial results. |
18
Table of Contents
19
Table of Contents
20
Table of Contents
21
Table of Contents
• | the national and local economies; | ||
• | local real estate market conditions, such as an oversupply of apartment homes; | ||
• | tenants’ perceptions of the safety, convenience, and attractiveness of our communities and the neighborhoods where they are located; | ||
• | our ability to provide adequate management, maintenance and insurance; | ||
• | rental expenses, including real estate taxes and utilities; | ||
• | competition from other apartment communities; | ||
• | changes in interest rates and the availability of financing; | ||
• | changes in governmental regulations and the related costs of compliance; and | ||
• | changes in tax and housing laws, including the enactment of rent control laws or other laws regulating multi-family housing. |
22
Table of Contents
23
Table of Contents
24
Table of Contents
25
Table of Contents
• | general market and economic conditions; | ||
• | actual or anticipated variations in UDR’s quarterly operating results or dividends or UDR’s payment of dividends in shares of UDR’s stock; | ||
• | changes in our funds from operations or earnings estimates; | ||
• | difficulties or inability to access capital or extend or refinance existing debt; | ||
• | decreasing (or uncertainty in) real estate valuations; | ||
• | changes in market valuations of similar companies; | ||
• | publication of research reports about us or the real estate industry; | ||
• | the general reputation of real estate investment trusts and the attractiveness of their equity securities in comparison to other equity securities (including securities issued by other real estate companies); | ||
• | general stock and bond market conditions, including changes in interest rates on fixed income securities, that may lead prospective purchasers of UDR’s stock to demand a higher annual yield from future dividends; | ||
• | a change in analyst ratings; |
26
Table of Contents
• | additions or departures of key management personnel; | ||
• | adverse market reaction to any additional debt we incur in the future; | ||
• | speculation in the press or investment community; | ||
• | terrorist activity which may adversely affect the markets in which UDR’s securities trade, possibly increasing market volatility and causing the further erosion of business and consumer confidence and spending; | ||
• | failure to qualify as a REIT; | ||
• | strategic decisions by us or by our competitors, such as acquisitions, divestments, spin-offs, joint ventures, strategic investments or changes in business strategy; | ||
• | failure to satisfy listing requirements of the NYSE; | ||
• | governmental regulatory action and changes in tax laws; and | ||
• | the issuance of additional shares of UDR’s common stock, or the perception that such sales might occur, including under UDR’s at-the-market equity distribution program. |
27
Table of Contents
28
Table of Contents
Average | ||||||||||||||||||||||||||||||||
Number of | Number of | Percentage of | Carrying | Average | Home Size | |||||||||||||||||||||||||||
Apartment | Apartment | Carrying | Value | Encumbrances | Cost per | Physical | Square | |||||||||||||||||||||||||
Communities | Homes | Value | (in thousands) | (in thousands) | Home | Occupancy | Feet | |||||||||||||||||||||||||
WESTERN REGION | �� | |||||||||||||||||||||||||||||||
Orange County, CA | 13 | 4,254 | 10.1 | % | $ | 814,951 | $ | 336,153 | $ | 191,573 | 94.9 | % | 835 | |||||||||||||||||||
San Francisco, CA | 11 | 2,436 | 8.0 | % | 645,240 | 105,236 | 264,877 | 94.3 | % | 833 | ||||||||||||||||||||||
Los Angeles, CA | 6 | 1,502 | 5.5 | % | 445,931 | 166,213 | 296,891 | 95.4 | % | 939 | ||||||||||||||||||||||
Seattle, WA | 11 | 2,165 | 5.8 | % | 471,410 | 68,342 | 217,741 | 95.8 | % | 882 | ||||||||||||||||||||||
San Diego, CA | 2 | 366 | 0.7 | % | 55,679 | — | 152,131 | 94.8 | % | 865 | ||||||||||||||||||||||
Monterey Peninsula, CA | 7 | 1,565 | 1.9 | % | 154,030 | — | 98,422 | 93.8 | % | 724 | ||||||||||||||||||||||
Inland Empire, CA | 2 | 654 | 1.3 | % | 100,946 | 78,325 | 154,353 | 94.9 | % | 955 | ||||||||||||||||||||||
Sacramento, CA | 2 | 914 | 0.9 | % | 69,058 | — | 75,556 | 93.1 | % | 820 | ||||||||||||||||||||||
Portland, OR | 3 | 716 | 0.9 | % | 70,383 | 41,934 | 98,300 | 95.5 | % | 918 | ||||||||||||||||||||||
MID-ATLANTIC REGION | ||||||||||||||||||||||||||||||||
Metropolitan DC | 14 | 4,500 | 11.2 | % | 907,496 | 196,232 | 201,666 | 96.2 | % | 963 | ||||||||||||||||||||||
Baltimore, MD | 11 | 2,301 | 3.7 | % | 300,389 | 131,794 | 130,547 | 96.5 | % | 1,001 | ||||||||||||||||||||||
Richmond, VA | 6 | 2,211 | 2.3 | % | 189,470 | 67,089 | 85,694 | 95.9 | % | 966 | ||||||||||||||||||||||
Norfolk, VA | 6 | 1,438 | 1.1 | % | 86,194 | — | 59,940 | 94.7 | % | 1,016 | ||||||||||||||||||||||
Boston, MA | 4 | 1,179 | 3.9 | % | 313,565 | 85,463 | 265,958 | 96.3 | % | 1,097 | ||||||||||||||||||||||
New York, NY | 4 | 1,916 | 14.5 | % | 1,171,983 | 241,094 | 611,682 | 96.4 | % | 761 | ||||||||||||||||||||||
Other Mid-Atlantic | 3 | 844 | 0.8 | % | 61,393 | — | 72,741 | 95.9 | % | 963 | ||||||||||||||||||||||
SOUTHEASTERN REGION | ||||||||||||||||||||||||||||||||
Tampa, FL | 11 | 3,804 | 4.2 | % | 336,859 | 20,561 | 88,554 | 95.5 | % | 963 | ||||||||||||||||||||||
Orlando, FL | 11 | 3,167 | 3.4 | % | 274,931 | 85,999 | 86,811 | 95.0 | % | 978 | ||||||||||||||||||||||
Nashville, TN | 8 | 2,260 | 2.3 | % | 182,764 | 24,591 | 80,869 | 96.3 | % | 933 | ||||||||||||||||||||||
Jacksonville, FL | 5 | 1,857 | 2.0 | % | 159,213 | — | 85,737 | 94.5 | % | 913 | ||||||||||||||||||||||
Other Florida | 4 | 1,184 | 1.4 | % | 113,640 | 40,133 | 95,980 | 93.7 | % | 1,035 | ||||||||||||||||||||||
SOUTHWESTERN REGION | ||||||||||||||||||||||||||||||||
Dallas, TX | 10 | 3,581 | 5.1 | % | 415,779 | 98,273 | 116,107 | 95.5 | % | 889 | ||||||||||||||||||||||
Phoenix, AZ | 6 | 1,744 | 2.1 | % | 171,782 | 31,695 | 98,499 | 94.6 | % | 970 | ||||||||||||||||||||||
Austin, TX | 2 | 640 | 1.2 | % | 98,146 | 25,079 | 153,350 | 91.8 | % | 888 | ||||||||||||||||||||||
Total Operating Communities | 162 | 47,198 | 94.3 | % | 7,611,232 | 1,844,206 | $ | 161,262 | 95.3 | % | 920 | |||||||||||||||||||||
Real Estate Under Development (a) | 1 | 145 | 3.1 | % | 248,746 | 25,076 | ||||||||||||||||||||||||||
Land | — | — | 1.6 | % | 125,824 | — | ||||||||||||||||||||||||||
Other | — | — | 1.0 | % | 88,669 | 22,271 | ||||||||||||||||||||||||||
Total Real Estate Owned | 163 | 47,343 | 100.0 | % | $ | 8,074,471 | $ | 1,891,553 | ||||||||||||||||||||||||
(a) | The Company is currently developing seven wholly-owned communities with 2,108 apartment homes, 145 of which have been completed. |
29
Table of Contents
Average | ||||||||||||||||||||||||||||||||
Number of | Number of | Percentage of | Carrying | Average | Home Size | |||||||||||||||||||||||||||
Apartment | Apartment | Carrying | Value | Encumbrances | Cost per | Physical | (In Square | |||||||||||||||||||||||||
Communities | Homes | Value | (In thousands) | (In thousands) | Home | Occupancy | Feet) | |||||||||||||||||||||||||
WESTERN REGION | ||||||||||||||||||||||||||||||||
Orange County, CA | 11 | 3,899 | 17.3 | % | $ | 725,615 | $ | 336,153 | $ | 186,103 | 94.9 | % | 812 | |||||||||||||||||||
San Francisco, CA | 9 | 2,185 | 12.9 | % | 543,953 | 105,236 | 248,949 | 94.0 | % | 809 | ||||||||||||||||||||||
Los Angeles, CA | 3 | 463 | 3.0 | % | 125,104 | 8,663 | 270,201 | 95.4 | % | 960 | ||||||||||||||||||||||
Seattle, WA | 5 | 932 | 4.9 | % | 208,097 | 32,044 | 223,280 | 96.1 | % | 865 | ||||||||||||||||||||||
San Diego, CA | 2 | 366 | 1.3 | % | 55,679 | — | 152,131 | 94.8 | % | 865 | ||||||||||||||||||||||
Monterey Peninsula, CA | 7 | 1,565 | 3.7 | % | 154,030 | — | 98,422 | 93.8 | % | 724 | ||||||||||||||||||||||
Inland Empire, CA | 1 | 414 | 1.7 | % | 69,584 | 54,308 | 168,077 | 94.8 | % | 989 | ||||||||||||||||||||||
Sacramento, CA | 2 | 914 | 1.6 | % | 69,058 | — | 75,556 | 93.1 | % | 820 | ||||||||||||||||||||||
Portland, OR | 3 | 716 | 1.7 | % | 70,383 | 41,934 | 98,300 | 95.5 | % | 918 | ||||||||||||||||||||||
MID-ATLANTIC REGION | ||||||||||||||||||||||||||||||||
Metropolitan DC | 8 | 2,565 | 13.8 | % | 582,283 | 98,452 | 227,011 | 95.6 | % | 948 | ||||||||||||||||||||||
Baltimore, MD | 5 | 994 | 3.5 | % | 147,209 | 83,682 | 148,098 | 95.6 | % | 971 | ||||||||||||||||||||||
Boston, MA | 2 | 833 | 4.1 | % | 172,991 | 60,702 | 207,672 | 96.1 | % | 1,120 | ||||||||||||||||||||||
New York, NY | 2 | 1,000 | 13.9 | % | 586,529 | 205,526 | 586,529 | 95.6 | % | 687 | ||||||||||||||||||||||
SOUTHEASTERN REGION | ||||||||||||||||||||||||||||||||
Tampa, FL | 3 | 1,154 | 2.6 | % | 111,019 | — | 96,203 | 96.0 | % | 1,029 | ||||||||||||||||||||||
Nashville, TN | 6 | 1,612 | 3.1 | % | 128,836 | — | 79,923 | 96.3 | % | 925 | ||||||||||||||||||||||
Jacksonville, FL | 1 | 400 | 1.0 | % | 42,692 | — | 106,730 | 94.3 | % | 964 | ||||||||||||||||||||||
Other Florida | 1 | 636 | 1.8 | % | 77,499 | 40,133 | 121,854 | 93.2 | % | 1,130 | ||||||||||||||||||||||
SOUTHWESTERN REGION | ||||||||||||||||||||||||||||||||
Dallas, TX | 2 | 1,348 | 4.4 | % | 184,158 | 91,117 | 136,616 | 95.8 | % | 909 | ||||||||||||||||||||||
Phoenix, AZ | 3 | 914 | 1.7 | % | 72,919 | 31,695 | 79,781 | 95.0 | % | 1,000 | ||||||||||||||||||||||
Austin, TX | 1 | 250 | 0.9 | % | 37,631 | — | 150,512 | 85.5 | % | 883 | ||||||||||||||||||||||
Total Operating Communities | 77 | 23,160 | 98.9 | % | 4,165,269 | 1,189,645 | 179,848 | 95.0 | % | 890 | ||||||||||||||||||||||
Land and other | — | — | 1.1 | % | 40,029 | — | ||||||||||||||||||||||||||
Total Real Estate Owned | 77 | 23,160 | 100.0 | % | $ | 4,205,298 | $ | 1,189,645 | ||||||||||||||||||||||||
30
Table of Contents
31
Table of Contents
Item 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
2011 | 2010 | |||||||||||||||||||||||
Distributions | Distributions | |||||||||||||||||||||||
High | Low | Declared | High | Low | Declared | |||||||||||||||||||
Quarter ended March 31, | $ | 24.42 | $ | 22.19 | $ | 0.185 | $ | 18.26 | $ | 14.47 | $ | 0.180 | ||||||||||||
Quarter ended June 30, | $ | 26.46 | $ | 23.42 | $ | 0.200 | $ | 21.82 | $ | 17.57 | $ | 0.180 | ||||||||||||
Quarter ended September 30, | $ | 27.26 | $ | 21.18 | $ | 0.200 | $ | 22.26 | $ | 17.93 | $ | 0.185 | ||||||||||||
Quarter ended December 31, | $ | 25.67 | $ | 20.04 | $ | 0.215 | $ | 24.10 | $ | 20.99 | $ | 0.185 |
32
Table of Contents
33
Table of Contents
Total Number of Shares | Maximum Number of | |||||||||||||||
Total Number | Average | Purchased as Part | Shares that May Yet Be | |||||||||||||
of Shares | Price per | of Publicly Announced | Purchased Under the | |||||||||||||
Period | Purchased | Share | Plans or Programs | Plans or Programs (1) | ||||||||||||
Beginning Balance | 9,967,490 | $ | 22.00 | 9,967,490 | 15,032,510 | |||||||||||
October 1, 2011 through October 31, 2011 | — | — | — | 15,032,510 | ||||||||||||
November 1, 2011 through November 30, 2011 | — | — | — | 15,032,510 | ||||||||||||
December 1, 2011 through December 31, 2011 | — | — | — | 15,032,510 | ||||||||||||
Balance as of December 31, 2011 | 9,967,490 | $ | 22.00 | 9,967,490 | 15,032,510 | |||||||||||
(1) | This number reflects the amount of shares that were available for purchase under our 10,000,000 share repurchase program authorized in February 2006 and our 15,000,000 share repurchase program authorized in January 2008. |
Period Ending | ||||||||||||||||||||||||
Index | 12/31/06 | 12/31/07 | 12/31/08 | 12/31/09 | 12/31/10 | 12/31/11 | ||||||||||||||||||
UDR, Inc. | 100.00 | 65.38 | 53.19 | 67.84 | 100.87 | 111.19 | ||||||||||||||||||
NAREIT Equity Appartment Index | 100.00 | 74.57 | 55.83 | 72.81 | 107.05 | 123.22 | ||||||||||||||||||
US MSCI REITS | 100.00 | 83.18 | 51.60 | 66.36 | 85.26 | 92.67 | ||||||||||||||||||
S&P 500 | 100.00 | 105.49 | 66.46 | 84.05 | 96.71 | 98.76 | ||||||||||||||||||
NAREIT Equity REIT Index | 100.00 | 84.31 | 52.50 | 67.20 | 85.98 | 93.11 |
34
Table of Contents
UDR, Inc. | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
(In thousands, except per share data | ||||||||||||||||||||
and apartment homes owned) | ||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
OPERATING DATA: | ||||||||||||||||||||
Rental income (a) | $ | 691,263 | $ | 574,084 | $ | 547,820 | $ | 512,683 | $ | 458,159 | ||||||||||
(Loss)/income from continuing operations (a) | (111,636 | ) | (115,804 | ) | (97,480 | ) | (66,536 | ) | 40,008 | |||||||||||
Income from discontinued operations (a) | 132,221 | 9,216 | 5,857 | 810,403 | 186,722 | |||||||||||||||
Consolidated net income/(loss) | 20,585 | (106,588 | ) | (91,623 | ) | 743,867 | 226,730 | |||||||||||||
Distributions to preferred stockholders | 9,311 | 9,488 | 10,912 | 12,138 | 13,910 | |||||||||||||||
Net income/(loss) attributable to common stockholders | 10,537 | (112,362 | ) | (95,858 | ) | 688,708 | 198,958 | |||||||||||||
Common distributions declared | 165,590 | 126,086 | 127,066 | 308,313 | 177,540 | |||||||||||||||
Special Dividend declared | — | — | — | 177,074 | — | |||||||||||||||
Earnings per share — basic and diluted: | ||||||||||||||||||||
(Loss)/income from continuing operations attributable to common stockholders | $ | (0.60 | ) | $ | (0.73 | ) | $ | (0.68 | ) | $ | (0.93 | ) | $ | 0.09 | ||||||
Income from discontinued operations (a) | 0.66 | 0.06 | 0.04 | 6.22 | 1.39 | |||||||||||||||
Net income/(loss) attributable to common stockholders | 0.05 | (0.68 | ) | (0.64 | ) | 5.29 | 1.48 | |||||||||||||
Weighted average number of Common Shares outstanding — basic and diluted | 201,294 | 165,857 | 149,090 | 130,219 | 134,016 | |||||||||||||||
Weighted average number of Common Shares outstanding, OP Units and Common Stock equivalents outstanding — diluted (b) | 214,086 | 176,900 | 159,561 | 142,904 | 147,199 | |||||||||||||||
Common distributions declared | $ | 0.80 | $ | 0.73 | $ | 0.85 | $ | 2.29 | $ | 1.22 | ||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Real estate owned, at cost (c) | $ | 8,074,471 | $ | 6,881,347 | $ | 6,315,047 | $ | 5,831,753 | $ | 5,956,481 | ||||||||||
Accumulated depreciation (c) | 1,831,727 | 1,638,326 | 1,351,293 | 1,078,689 | 1,371,759 | |||||||||||||||
Total real estate owned, net of accumulated depreciation (c) | 6,242,744 | 5,243,021 | 4,963,754 | 4,753,064 | 4,584,722 | |||||||||||||||
Total assets | 6,721,354 | 5,529,540 | 5,132,617 | 5,143,805 | 4,800,454 | |||||||||||||||
Secured debt (c) | 1,891,553 | 1,963,670 | 1,989,434 | 1,462,471 | 1,137,936 | |||||||||||||||
Unsecured debt | 2,026,817 | 1,603,834 | 1,437,155 | 1,798,662 | 2,341,895 | |||||||||||||||
Total debt | 3,918,370 | 3,567,504 | 3,426,589 | 3,261,133 | 3,479,831 | |||||||||||||||
Stockholders’ equity | 2,314,050 | 1,606,343 | 1,395,441 | 1,415,989 | 941,205 | |||||||||||||||
Number of Common Shares outstanding | 219,650 | 182,496 | 155,465 | 137,423 | 133,318 |
35
Table of Contents
UDR, Inc. | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
(In thousands, except per share data | ||||||||||||||||||||
and apartment homes owned) | ||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
OPERATING DATA (continued): | ||||||||||||||||||||
Other Data (c) | ||||||||||||||||||||
Total apartments owned (at end of year) | 47,343 | 48,553 | 45,913 | 44,388 | 65,867 | |||||||||||||||
Weighted average number of apartment homes owned during the year | 48,531 | 48,531 | 45,113 | 46,149 | 69,662 | |||||||||||||||
Cash Flow Data: | ||||||||||||||||||||
Cash provided by operating activities | $ | 244,236 | $ | 214,180 | $ | 229,383 | $ | 179,754 | $ | 269,281 | ||||||||||
Cash (used in)/provided by investing activities | (1,053,182 | ) | (583,754 | ) | (158,045 | ) | 302,304 | (90,100 | ) | |||||||||||
Cash provided by/(used in) financing activities | 811,963 | 373,075 | (78,093 | ) | (472,537 | ) | (178,105 | ) | ||||||||||||
Funds from Operations (b): | ||||||||||||||||||||
Funds from operations — basic | $ | 269,856 | $ | 189,045 | $ | 180,858 | $ | 204,213 | $ | 238,722 | ||||||||||
Funds from operations — diluted | 273,580 | 192,771 | 184,582 | 207,937 | 242,446 |
(a) | Reclassified to conform to current year presentation in accordance with ACS Topic 205-20,Presentation of Financial Statements — Discontinued Operations, as described in Note 4 to the Consolidated Financial Statements included in this Report. | |
(b) | Funds from operations, or FFO, is defined as net income (computed in accordance with generally accepted accounting principles), excluding impairment write-downs of depreciable real estate or of investments in non-consolidated investees that are driven by measurable decreases in the fair value of depreciable real estate held by the investee, gains (or losses) from sales of depreciable property, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. This definition conforms with the National Association of Real Estate Investment Trust’s definition issued in April 2002. We consider FFO in evaluating property acquisitions and our operating performance and believe that FFO should be considered along with, but not as an alternative to, net income and cash flows as a measure of our activities in accordance with generally accepted accounting principles. FFO does not represent cash generated from operating activities in accordance with generally accepted accounting principles and is not necessarily indicative of cash available to fund cash needs. | |
RE3 is our subsidiary that focuses on development, and land entitlement. RE3 tax benefits and gain on sales, net of taxes, is defined as net sales proceeds less a tax provision and the gross investment basis of the asset before accumulated depreciation. To determine whether gains from RE3will be included in FFO, the Company considers whether the operating asset has been a short term investment. We consider FFO with RE3 tax benefits and gain on sales, net of taxes, to be a meaningful supplemental measure of performance because the short-term use of funds produces a profit that differs from the traditional long-term investment in real estate for REITs. | ||
See “Funds from Operations” below for a reconciliation of FFO and Net income/(loss) attributable to UDR, Inc. | ||
(c) | Includes amounts classified as Held for Sale, where applicable. |
36
Table of Contents
Years Ended December 31,
(In thousands, except per OP unit data
and apartment homes owned)
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
OPERATING DATA: | ||||||||||||||||||||
Rental income (a) | $ | 367,245 | $ | 319,089 | $ | 322,456 | $ | 305,016 | $ | 266,387 | ||||||||||
(Loss)/income from continuing operations (a) | (34,038 | ) | (25,658 | ) | (7,160 | ) | 8,045 | 114,467 | ||||||||||||
Income from discontinued operations | 64,267 | 4,964 | 3,115 | 490,863 | 79,963 | |||||||||||||||
Consolidated net income/(loss) | 30,229 | (20,694 | ) | (4,045 | ) | 498,908 | 194,430 | |||||||||||||
Net income/(loss) attributable to OP unitholders | 30,159 | (20,735 | ) | (4,176 | ) | 497,720 | 193,688 | |||||||||||||
Earnings per OP unit- basic and diluted: | ||||||||||||||||||||
(Loss)/income from continuing operations (a) | $ | (0.19 | ) | $ | (0.14 | ) | $ | (0.04 | ) | $ | 0.05 | $ | 0.69 | |||||||
Income from discontinued operations | 0.35 | 0.03 | 0.02 | 2.95 | 0.48 | |||||||||||||||
Net income/(loss) attributable to OP unitholders | 0.17 | (0.12 | ) | (0.02 | ) | 3.00 | 1.17 | |||||||||||||
Weighted average number of OP units outstanding — basic and diluted | 182,448 | 179,909 | 178,817 | 166,163 | 166,174 | |||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Real estate owned, at cost (b) | $ | 4,205,298 | $ | 3,706,184 | $ | 3,640,888 | $ | 3,569,239 | 2,685,249 | |||||||||||
Accumulated depreciation (b) | 976,358 | 884,083 | 717,892 | 552,369 | 403,092 | |||||||||||||||
Total real estate owned, net of accumulated depreciation (b) | 3,228,940 | 2,822,101 | 2,922,996 | 3,016,870 | 2,282,157 | |||||||||||||||
Total assets | 3,292,167 | 2,861,395 | 2,961,067 | 3,254,851 | 2,909,707 | |||||||||||||||
Secured debt (b) | 1,189,645 | 1,070,061 | 1,122,198 | 851,901 | 594,845 | |||||||||||||||
Total liabilities | 1,437,665 | 1,299,772 | 1,339,319 | 1,272,101 | 920,698 | |||||||||||||||
Total partners’ capital | 2,034,792 | 2,042,241 | 2,197,753 | 2,345,825 | 2,232,404 | |||||||||||||||
Receivable due from General Partner | 192,451 | 492,709 | 588,185 | 375,124 | 254,256 | |||||||||||||||
Number of OP units outstanding | 184,281 | 179,909 | 179,909 | 166,163 | 166,163 | |||||||||||||||
Other Data: | ||||||||||||||||||||
Total apartments owned (at end of year) (b) | 23,160 | 23,351 | 23,351 | 23,351 | 36,965 | |||||||||||||||
Cash Flow Data: | ||||||||||||||||||||
Cash provided by operating activities | $ | 156,071 | $ | 146,604 | $ | 157,333 | $ | 168,660 | $ | 212,727 | ||||||||||
Cash (used in)/provided by investing activities | (226,980 | ) | (59,458 | ) | 129,628 | 81,993 | 75,069 | |||||||||||||
Cash provided by/(used in) financing activities | 70,693 | (86,668 | ) | (290,109 | ) | (247,150 | ) | (287,847 | ) |
(a) | Reclassified to conform to current year presentation in accordance with ASC Topic 205-20, Presentation of Financial Statements — Discontinued Operations, as described in Note 4 to the Consolidated Financial Statements included in this Report. | |
(b) | Includes amounts classified as Held for Sale, where applicable. |
37
Table of Contents
Item 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | general economic conditions; |
• | unfavorable changes in apartment market and economic conditions that could adversely affect occupancy levels and rental rates; |
• | the failure of acquisitions to achieve anticipated results; |
• | possible difficulty in selling apartment communities; |
• | competitive factors that may limit our ability to lease apartment homes or increase or maintain rents; |
• | insufficient cash flow that could affect our debt financing and create refinancing risk; |
• | failure to generate sufficient revenue, which could impair our debt service payments and distributions to stockholders; |
• | development and construction risks that may impact our profitability; |
• | potential damage from natural disasters, including hurricanes and other weather-related events, which could result in substantial costs to us; |
• | risks from extraordinary losses for which we may not have insurance or adequate reserves; |
• | uninsured losses due to insurance deductibles, self-insurance retention, uninsured claims or casualties, or losses in excess of applicable coverage; |
• | delays in completing developments and lease-ups on schedule; |
• | our failure to succeed in new markets; |
• | changing interest rates, which could increase interest costs and affect the market price of our securities; |
• | potential liability for environmental contamination, which could result in substantial costs to us; |
• | the imposition of federal taxes if we fail to qualify as a REIT under the Code in any taxable year; |
• | our internal control over financial reporting may not be considered effective which could result in a loss of investor confidence in our financial reports, and in turn have an adverse effect on our stock price; and |
• | changes in real estate laws, tax laws and other laws affecting our business. |
38
Table of Contents
39
Table of Contents
Twelve Months Ended | ||||||||||||||||||||||||||||
As of December 31, 2011 | December 31, 2011 | |||||||||||||||||||||||||||
Percentage | Total | |||||||||||||||||||||||||||
Number of | Number of | of Total | Carrying | Average | Total Income | Net Operating | ||||||||||||||||||||||
Apartment | Apartment | Carrying | Value | Physical | per Occupied | Income | ||||||||||||||||||||||
SAME COMMUNITIES | Communities | Homes | Value | (in thousands) | Occupancy | Home (a) | (in thousands) | |||||||||||||||||||||
WESTERN REGION | ||||||||||||||||||||||||||||
Orange County, CA | 9 | 3,025 | 6.5 | % | $ | 524,771 | 94.8 | % | $ | 1,499 | $ | 36,546 | ||||||||||||||||
Seattle, WA | 9 | 1,725 | 3.8 | % | 306,295 | 95.5 | % | 1,241 | 16,746 | |||||||||||||||||||
Monterey Peninsula, CA | 7 | 1,565 | 1.9 | % | 154,030 | 93.8 | % | 1,110 | 13,305 | |||||||||||||||||||
San Francisco, CA | 7 | 1,477 | 4.5 | % | 364,336 | 96.7 | % | 2,133 | 26,940 | |||||||||||||||||||
Los Angeles, CA | 5 | 919 | 3.6 | % | 293,198 | 95.6 | % | 1,932 | 13,376 | |||||||||||||||||||
Sacramento, CA | 2 | 914 | 0.9 | % | 69,058 | 93.1 | % | 882 | 5,973 | |||||||||||||||||||
Portland, OR | 3 | 716 | 0.9 | % | 70,383 | 95.5 | % | 998 | 5,570 | |||||||||||||||||||
Inland Empire, CA | 2 | 654 | 1.3 | % | 100,946 | 94.9 | % | 1,379 | 7,061 | |||||||||||||||||||
San Diego, CA | 2 | 366 | 0.7 | % | 55,679 | 94.8 | % | 1,365 | 3,775 | |||||||||||||||||||
MID-ATLANTIC REGION | ||||||||||||||||||||||||||||
Metropolitan DC | 10 | 3,516 | 8.2 | % | 665,877 | 96.9 | % | 1,669 | 46,108 | |||||||||||||||||||
Richmond, VA | 6 | 2,211 | 2.3 | % | 189,470 | 95.9 | % | 1,055 | 19,251 | |||||||||||||||||||
Baltimore, MD | 10 | 2,121 | 3.2 | % | 254,844 | 96.5 | % | 1,316 | 22,759 | |||||||||||||||||||
Norfolk VA | 6 | 1,438 | 1.1 | % | 86,194 | 94.7 | % | 980 | 10,865 | |||||||||||||||||||
Other Mid-Atlantic | 3 | 844 | 0.8 | % | 61,393 | 95.9 | % | 1,079 | 7,410 | |||||||||||||||||||
SOUTHEASTERN REGION | ||||||||||||||||||||||||||||
Tampa, FL | 11 | 3,804 | 4.2 | % | 336,859 | 95.5 | % | 980 | 26,309 | |||||||||||||||||||
Orlando, FL | 10 | 2,796 | 2.8 | % | 224,069 | 94.9 | % | 916 | 18,884 | |||||||||||||||||||
Nashville, TN | 8 | 2,260 | 2.3 | % | 182,764 | 96.3 | % | 894 | 14,878 | |||||||||||||||||||
Jacksonville, FL | 5 | 1,857 | 2.0 | % | 159,213 | 94.5 | % | 846 | 11,083 | |||||||||||||||||||
Other Florida | 4 | 1,184 | 1.4 | % | 113,640 | 93.7 | % | 1,016 | 8,215 | |||||||||||||||||||
SOUTHWESTERN REGION | ||||||||||||||||||||||||||||
Dallas, TX | 8 | 2,725 | 3.5 | % | 282,940 | 96.1 | % | 952 | 17,341 | |||||||||||||||||||
Phoenix, AZ | 5 | 1,362 | 1.5 | % | 122,434 | 94.9 | % | 900 | 9,076 | |||||||||||||||||||
Austin, TX | 1 | 390 | 0.7 | % | 60,517 | 95.8 | % | 1,195 | 2,978 | |||||||||||||||||||
Total/Average Same Communities | 133 | 37,869 | 58.1 | % | 4,678,910 | 95.5 | % | $ | 1,188 | $ | 344,449 | |||||||||||||||||
Non Matures, Commercial Properties & Other | 29 | 9,329 | 39.3 | % | 3,146,815 | |||||||||||||||||||||||
Total Real Estate Held for Invertment | 162 | 47,198 | 97.4 | % | 7,825,725 | |||||||||||||||||||||||
Real Estate Under Development (b) | 1 | 145 | 2.6 | % | 248,746 | |||||||||||||||||||||||
Total Real Estate Owned | 163 | 47,343 | 100.0 | % | 8,074,471 | |||||||||||||||||||||||
Total Accumulated Depreciation | (1,831,727 | ) | ||||||||||||||||||||||||||
Total Real Estate Owned, Net of Accumulated Depreciation | $ | 6,242,744 | ||||||||||||||||||||||||||
(a) | Total Income per Occupied Home represents total revenues divided by the product of occupancy and the number of mature apartment homes. | |
(b) | The Company is currently developing seven wholly-owned communities with 2,108 apartment homes, 145 of which have been completed. |
40
Table of Contents
41
Table of Contents
42
Table of Contents
Year ended December 31, | ||||||||||||||||||||||||
(dollars in thousands, except for per apartment homes) | ||||||||||||||||||||||||
Per Apartment Home | ||||||||||||||||||||||||
2011 | 2010 | % Change | 2011 | 2010 | % Change | |||||||||||||||||||
Revenue enhancing improvements | $ | 7,330 | $ | 15,043 | -51.3 | % | $ | 153 | $ | 334 | -54.2 | % | ||||||||||||
Turnover capital expenditures | 12,905 | 9,528 | 35.4 | % | 269 | 212 | 26.9 | % | ||||||||||||||||
Asset preservation expenditures | 31,658 | 22,538 | 40.5 | % | 659 | 501 | 31.6 | % | ||||||||||||||||
Total recurring capital expenditures | 51,893 | 47,109 | 10.2 | % | 1,081 | 1,047 | 3.2 | % | ||||||||||||||||
Major renovations | 29,992 | 30,816 | -2.7 | % | 625 | 685 | -8.8 | % | ||||||||||||||||
Total capital expenditures | $ | 81,885 | $ | 77,925 | 5.1 | % | $ | 1,706 | $ | 1,732 | -1.5 | % | ||||||||||||
Repair and maintenance expense | $ | 37,855 | $ | 33,224 | 13.9 | % | $ | 789 | $ | 738 | 6.9 | % | ||||||||||||
Average stabilized home count | 48,005 | 44,999 |
43
Table of Contents
44
Table of Contents
Purchase | ||||||||||||
Property Name | Market | Acquisition Date | Units | Price (a) | ||||||||
10 Hanover Square | New York, NY | April 2011 | 493 | $ | 259,750 | |||||||
388 Beale | San Francisco, CA | April 2011 | 227 | 90,500 | ||||||||
14 North | Boston, MA | April 2011 | 387 | 64,500 | ||||||||
Inwood West | Boston, MA | April 2011 | 446 | 108,000 | ||||||||
View 14 | Metropolitan D.C. | June 2011 | 185 | 105,538 | ||||||||
Rivergate | New York, NY | July 2011 | 706 | 443,403 | ||||||||
21 Chelsea | New York, NY | August 2011 | 210 | 138,930 | ||||||||
95 Wall | New York, NY | August 2011 | 507 | 328,914 | ||||||||
3,161 | $ | 1,539,535 | ||||||||||
45
Table of Contents
46
Table of Contents
• | We received proceeds of $30.7 million from secured debt financings. The $30.7 million includes $25.7 million in variable rate mortgages and $5.0 million in fixed rate mortgages. |
• | We repaid $336.0 million of secured debt, which includes $197.5 million of construction loans, repayment of $102.8 million of credit facilities, $22.4 million of mortgage payments, and repayment of $13.3 million in tax exempt bonds. |
47
Table of Contents
• | Certain holders submitted their outstanding 4.00% Convertible Senior Notes due 2035 to the Company for repurchase. As a result, we repurchased notes with a notional value of $10.8 million, representing approximately 6.44% of the $167.8 million in aggregate principal amount outstanding, and expensed $207,000 of unamortized financing costs during the three months ended March 31, 2011. On March 2, 2011 the Company called the remaining outstanding notes with a notional value of $156.9 million. The notes were redeemed on April 4, 2011 and unamortized financing costs of $3.0 million were written off. |
• | In May 2011, the Company issued $300 million aggregate principal amount of 4.250% senior unsecured notes due June 2018 under its existing shelf registration statement. Interest is payable semiannually beginning in December 2011. The notes were priced at 98.988% of the principal amount plus accrued interest from May 23, 2011 to yield 4.419% to maturity. The notes are fully and unconditionally guaranteed by the Operating Partnership. |
• | We repaid $97.1 million on our 3.625% Convertible Senior Notes due September 2011. |
• | In October 2011, the Company entered into a new $900 million unsecured revolving credit facility, replacing the Company’s $600 million credit facility. The Operating Partnership issued a guarantee in connection with the new credit facility, similar to the guarantee it issued under the prior facility. The new facility has an initial term of four years and includes a one-year extension option, and contains an accordion feature that allows the Company to increase the facility to $1.35 billion. Based on the Company’s current credit ratings, the credit facility carries an interest rate equal to LIBOR plus a spread of 122.5 basis points and a facility fee of 22.5 basis points. In 2011, the Company had net borrowings of $389.3 million on its unsecured revolving credit facilities. |
• | In September 2009, the Company entered into an equity distribution agreement under which the Company may offer and sell up to 15.0 million shares of its common stock over time to or through its sales agents. During the year ended December 31, 2011, we sold 4,395,601 shares of common stock through an equity distribution agreement for aggregate gross proceeds of approximately $104.5 million at a weighted average price per share of $23.78. Aggregate net proceeds from such sales, after deducting related expenses, including commissions paid to the sales agents of approximately $2.1 million, were approximately $102.4 million, and such proceeds were used for general corporate purposes. |
• | In March 2011, the Company entered into a new equity distribution agreement under which the Company may offer and sell up to 20.0 million shares of its common stock over time to or through its sales agents. During the year ended December 31, 2011, we sold 11,849,079 shares of common stock through this program (of which 419,048 shares were settled subsequent to December 31, 2011) for aggregate gross proceeds of approximately $297.7 million at a weighted average price per share of $25.12. Aggregate net proceeds from such sales, after deducting related expenses, including commissions paid to the sales agents of approximately $6.0 million, were approximately $291.7 million, and such proceeds were used for general corporate purposes. In September 2011, the Company entered into a new equity distribution agreement in connection with filing a new registration statement on Form S-3. The new equity distribution agreement replaced the March 2011 agreement, and no material changes were made to the equity distribution agreement. As of December 31, 2011 8,150,921 shares of common stock may be sold under our equity distribution agreement. |
• | In July 2011, the Company closed a public offering of 20,700,000 shares of its common stock, including 2,700,000 shares sold as a result of the underwriters’ exercise of their overallotment option in full at the closing, at a price of $25.00 per share, for net proceeds of approximately $496.3 million after underwriting discounts and commissions and estimated offering expenses. |
• | We repurchased 141,200 shares of our 6.75% Series G Cumulative Redeemable Preferred Stock for $3.6 million, which was $100,000 more than their liquidation value of $3.5 million. |
48
Table of Contents
49
Table of Contents
50
Table of Contents
For the year ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Net income/(loss) attributable to UDR, Inc. | $ | 20,023 | $ | (102,899 | ) | $ | (87,532 | ) | ||||
Adjustments: | ||||||||||||
Distributions to preferred stockholders | (9,311 | ) | (9,488 | ) | (10,912 | ) | ||||||
Real estate depreciation and amortization, including discontinued operations | 370,343 | 303,446 | 278,391 | |||||||||
Net income/(loss) attributable to redeemable non-controlling interests in OP | 395 | (3,835 | ) | (4,282 | ) | |||||||
Net income attributable to non-controlling interests | 167 | 146 | 191 | |||||||||
Real estate depreciation and amortization on unconsolidated joint ventures | 11,631 | 5,698 | 4,759 | |||||||||
Net gains on the sale of depreciable property in discontinued operations, excluding RE3 | (123,217 | ) | (4,048 | ) | (2,343 | ) | ||||||
(Premium)/discount on preferred stock repurchases, net | (175 | ) | 25 | 2,586 | ||||||||
Funds from operations — basic | $ | 269,856 | $ | 189,045 | $ | 180,858 | ||||||
Distributions to preferred stockholders — Series E (Convertible) | 3,724 | 3,726 | 3,724 | |||||||||
Funds from operations — diluted | $ | 273,580 | $ | 192,771 | $ | 184,582 | ||||||
Weighted average number of common shares and OP Units outstanding — basic | 208,896 | 171,569 | 155,796 | |||||||||
Weighted average number of common shares and OP Units outstanding — diluted | 214,086 | 176,900 | 159,561 |
For the year ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Weighted average number of Common Shares and OP Units outstanding basic | 208,896 | 171,569 | 155,796 | |||||||||
Weighted average number of OP Units outstanding | (7,602 | ) | (5,712 | ) | (6,706 | ) | ||||||
Weighted average number of Common Shares outstanding - basic per the Consolidated Statement of Operations | 201,294 | 165,857 | 149,090 | |||||||||
Weighted average number of Common Shares, OP Units, and common stock equivalents outstanding — diluted | 214,086 | 176,900 | 159,561 | |||||||||
Weighted average number of OP Units outstanding | (7,602 | ) | (5,712 | ) | (6,706 | ) | ||||||
Weighted average incremental shares from assumed conversion of stock options | (1,297 | ) | (1,637 | ) | (567 | ) | ||||||
Weighted average incremental shares from unvested restricted stock | (857 | ) | (658 | ) | (162 | ) | ||||||
Weighted average number of Series E preferred shares outstanding | (3,036 | ) | (3,036 | ) | (3,036 | ) | ||||||
Weighted average number of Common Shares outstanding — diluted per the Consolidated Statements of Operations | 201,294 | 165,857 | 149,090 | |||||||||
51
Table of Contents
For the year ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Net cash provided by operating activities | $ | 244,236 | $ | 214,180 | $ | 229,383 | ||||||
Net cash used in investing activities | (1,053,182 | ) | (583,754 | ) | (158,045 | ) | ||||||
Net cash used provided by/(used in) financing activities | 811,963 | 373,075 | (78,093 | ) |
• | an increase in disposition gains in 2011 as compared to 2010. The Company recognized gains of $138.5 million and $4.1 million during the years ended December 31, 2011 and 2010, respectively, on the sale of eighteen apartment home communities and one community, respectively; and |
• | an increase in our net operating income. |
• | an increase in depreciation expense primarily due to the Company’s acquisition of eight apartment communities during the year ending December 31, 2011, and the completion of redevelopment and development communities in 2010 and 2011. |
• | an increase in depreciation expense primarily due to the Company’s acquisition of five apartment communities in the third quarter of 2010, consolidation of certain joint venture assets in the fourth quarter of 2009, and the completion of redevelopment and development communities in 2009 and 2010; |
• | an increase in interest expense primarily due to debt extinguishment gain from the repurchase of unsecured debt securities in 2009; and |
• | an increase in severance costs and restructuring charges in the fourth quarter of 2010 due to the consolidation of corporate operations and the centralization of job functions from its Richmond, Virginia office to its Highlands Ranch, Colorado headquarters, in addition to severance costs related to the retirement of an executive officer of the Company. |
52
Table of Contents
• | an increase in our net operating income; and |
• | a decrease in our loss from unconsolidated entities primarily due to the recognition of a $16.0 million non-cash charge representing an other-than-temporary decline in the fair value of equity investments in two of our unconsolidated joint ventures during the year ended December 31, 2009. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | % Change | 2010 | 2009 | % Change | |||||||||||||||||||
Property rental income | $ | 718,800 | $ | 624,981 | 15.0 | % | $ | 624,981 | $ | 594,359 | 5.2 | % | ||||||||||||
Property operating expense (a) | (243,616 | ) | (220,279 | ) | 10.6 | % | (220,279 | ) | (202,773 | ) | 8.6 | % | ||||||||||||
Property net operating income | $ | 475,184 | $ | 404,702 | 17.4 | % | $ | 404,702 | $ | 391,586 | 3.3 | % | ||||||||||||
Year Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Property net operating income | $ | 475,184 | $ | 404,702 | $ | 391,586 | ||||||
Other net operating income | 9,576 | 6,362 | 6,874 | |||||||||
Non-property income | 17,422 | 14,347 | 14,274 | |||||||||
Real estate depreciation and amortization | (370,343 | ) | (303,446 | ) | (278,391 | ) | ||||||
Interest expense | (158,333 | ) | (150,796 | ) | (142,152 | ) | ||||||
General and administrative and property management | (66,016 | ) | (62,675 | ) | (55,616 | ) | ||||||
Other depreciation and amortization | (3,931 | ) | (4,843 | ) | (5,161 | ) | ||||||
Other operating expenses | (6,217 | ) | (5,848 | ) | (6,485 | ) | ||||||
Severance costs and other restructuring charges | (1,342 | ) | (6,803 | ) | — | |||||||
Loss from unconsolidated entities | (6,352 | ) | (4,204 | ) | (18,665 | ) | ||||||
Redeemable non-controlling interests in OP | (395 | ) | 3,835 | 4,282 | ||||||||
Non-controlling interests | (167 | ) | (146 | ) | (191 | ) | ||||||
Tax (expense)/benefit | (7,571 | ) | 2,533 | (311 | ) | |||||||
Gain on sale of properties | 138,508 | 4,083 | 2,424 | |||||||||
Net income/(loss) attributable to UDR, Inc. | $ | 20,023 | $ | (102,899 | ) | $ | (87,532 | ) | ||||
53
Table of Contents
54
Table of Contents
55
Table of Contents
56
Table of Contents
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations | 2012 | 2013-2014 | 2015-2016 | Thereafter | Total | |||||||||||||||
Long-term debt obligations | $ | 406,197 | $ | 667,595 | $ | 1,527,679 | $ | 1,316,899 | $ | 3,918,370 | ||||||||||
Interest on debt obligations | 150,892 | 254,507 | 158,323 | 137,851 | 701,573 | |||||||||||||||
Contingent purchase consideration | 3,000 | — | — | — | 3,000 | |||||||||||||||
Letters of credit | 3,553 | — | — | — | 3,553 | |||||||||||||||
Unfunded commitments on development projects (a) | 65,722 | 359,807 | — | — | 425,529 | |||||||||||||||
Operating lease obligations: | ||||||||||||||||||||
Operating space | 458 | 976 | 539 | — | 1,973 | |||||||||||||||
Ground leases (b) | 5,043 | 10,086 | 10,086 | 314,914 | 340,129 | |||||||||||||||
$ | 634,865 | $ | 1,292,971 | $ | 1,696,627 | $ | 1,769,664 | $ | 5,394,127 | |||||||||||
(a) | Any unfunded costs at December 31, 2011 are shown in the year of estimated completion. The Company has project debt on many of our development projects. | |
(b) | For purposes of our ground lease contracts, the Company uses the minimum lease payment, if stated in the agreement. For ground lease agreements where there is a reset provision based on the communities appraised value or consumer price index but does not included a specified minimum lease payment, the Company uses the current rent over the remainder of the lease term. |
57
Table of Contents
As of December 31, 2011 | Year Ended | |||||||||||||||||||||||||||
Percentage | Total | December 31, 2011 | ||||||||||||||||||||||||||
Number of | Number of | of Total | Carrying | Average | Total Income | Net Operating | ||||||||||||||||||||||
Apartment | Apartment | Carrying | Value | Physical | per Occupied | Income | ||||||||||||||||||||||
SAME COMMUNITIES | Communities | Homes | Value | (in thousands) | Occupancy | Home (a) | (in thousands) | |||||||||||||||||||||
WESTERN REGION | ||||||||||||||||||||||||||||
Orange County, CA | 8 | 2,935 | 12.0 | % | $ | 504,228 | 94.8 | % | $ | 1,492 | $ | 35,302 | ||||||||||||||||
San Francisco, CA | 6 | 1,453 | 8.4 | % | 351,843 | 96.7 | % | 2,130 | 26,496 | |||||||||||||||||||
Monterey Peninsula, CA | 7 | 1,565 | 3.7 | % | 154,030 | 93.8 | % | 1,110 | 13,305 | |||||||||||||||||||
Los Angeles, CA | 3 | 463 | 3.0 | % | 125,104 | 95.4 | % | 1,765 | 6,054 | |||||||||||||||||||
San Diego, CA | 2 | 366 | 1.3 | % | 55,679 | 94.8 | % | 1,365 | 3,775 | |||||||||||||||||||
Seattle, WA | 5 | 932 | 4.9 | % | 208,097 | 96.1 | % | 1,276 | 9,273 | |||||||||||||||||||
Inland Empire, CA | 1 | 414 | 1.7 | % | 69,584 | 94.8 | % | 1,495 | 4,883 | |||||||||||||||||||
Sacramento, CA | 2 | 914 | 1.6 | % | 69,058 | 93.1 | % | 882 | 5,973 | |||||||||||||||||||
Portland, OR | 3 | 716 | 1.7 | % | 70,383 | 95.5 | % | 998 | 5,570 | |||||||||||||||||||
MID-ATLANTIC REGION | ||||||||||||||||||||||||||||
Metropolitan DC | 7 | 2,378 | 13.1 | % | 550,008 | 96.3 | % | 1,770 | 33,452 | |||||||||||||||||||
Baltimore, MD | 5 | 994 | 3.5 | % | 147,209 | 95.6 | % | 1,348 | 10,948 | |||||||||||||||||||
SOUTHEASTERN REGION | ||||||||||||||||||||||||||||
Tampa, FL | 3 | 1,154 | 2.6 | % | 111,019 | 96.0 | % | 1,036 | 8,723 | |||||||||||||||||||
Nashville, TN | 6 | 1,612 | 3.1 | % | 128,836 | 96.3 | % | 870 | 10,192 | |||||||||||||||||||
Jacksonville, FL | 1 | 400 | 1.0 | % | 42,692 | 94.3 | % | 889 | 2,511 | |||||||||||||||||||
Other Florida | 1 | 636 | 1.8 | % | 77,498 | 93.2 | % | 1,214 | 5,296 | |||||||||||||||||||
SOUTHWESTERN REGION | ||||||||||||||||||||||||||||
Dallas, TX | 2 | 1,348 | 4.4 | % | 184,158 | 95.8 | % | 1,180 | 10,994 | |||||||||||||||||||
Phoenix, AZ | 3 | 914 | 1.7 | % | 72,919 | 95.0 | % | 890 | 6,133 | |||||||||||||||||||
Total/Average Same Communities | 65 | 19,194 | 69.5 | % | 2,922,345 | 95.3 | % | $ | 1,333 | $ | 198,880 | |||||||||||||||||
Non Matures, Commercial Properties & Other | 12 | 3,966 | 30.5 | % | 1,282,953 | |||||||||||||||||||||||
Total Real Estate Held for Investment | 77 | 23,160 | 100.0 | % | 4,205,298 | |||||||||||||||||||||||
Total Accumulated Depreciation | (976,358 | ) | ||||||||||||||||||||||||||
Total Real Estate Owned, Net of Accumulated Depreciation | $ | 3,228,940 | ||||||||||||||||||||||||||
(a) | Total Income per Occupied Home represents total revenues divided by the product of occupancy and the number of mature apartment homes. |
58
Table of Contents
59
Table of Contents
60
Table of Contents
61
Table of Contents
• | an increase in disposition gains in 2011 as compared to 2010. We recognized net gains of $60.1 million for the year ended December 31, 2011 on the sale of eight apartment home communities. We recognized net gains of $152,000 for the year ended December 31, 2010 on trailing activities of apartment home communities sold in years prior to 2010; and |
• | an increase in net operating income. |
• | an increase in depreciation expense primarily due to the four acquisitions of operating properties in 2011. |
62
Table of Contents
• | a decrease in net operating income; |
• | an increase in general and administrative expenses allocated to us by our General Partner; and |
• | a decrease in other income. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | % Change | 2010 | 2009 | % Change | |||||||||||||||||||
Property rental income | $ | 387,057 | $ | 350,394 | 10.5 | % | $ | 350,394 | $ | 353,056 | -0.8 | % | ||||||||||||
Property operating expense (a) | (122,799 | ) | (116,278 | ) | 5.6 | % | (116,278 | ) | (112,488 | ) | 3.4 | % | ||||||||||||
Property net operating income | $ | 264,258 | $ | 234,116 | 12.9 | % | $ | 234,116 | $ | 240,568 | -2.7 | % | ||||||||||||
(a) | Excludes depreciation, amortization, and property management expenses. |
Year Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Property net operating income | $ | 264,258 | $ | 234,116 | $ | 240,568 | ||||||
Other non-property income | — | 1,695 | 5,695 | |||||||||
Real estate depreciation and amortization | (197,964 | ) | (166,480 | ) | (166,773 | ) | ||||||
Interest expense | (53,632 | ) | (52,222 | ) | (53,547 | ) | ||||||
General and administrative and property management | (37,014 | ) | (32,927 | ) | (26,595 | ) | ||||||
Other operating expenses | (5,484 | ) | (5,028 | ) | (4,868 | ) | ||||||
Net gain on sale of real estate | 60,065 | 152 | 1,475 | |||||||||
Non-controlling interests | (70 | ) | (41 | ) | (131 | ) | ||||||
Net (loss)/income attributable to OP unitholders | $ | 30,159 | $ | (20,735 | ) | $ | (4,176 | ) | ||||
63
Table of Contents
64
Table of Contents
65
Table of Contents
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations | 2012 | 2013-2014 | 2015-2016 | Thereafter | Total | |||||||||||||||
Long-term debt obligations | $ | 210,191 | $ | 92,104 | $ | 325,113 | $ | 562,237 | $ | 1,189,645 | ||||||||||
Interest on debt obligations | 49,920 | 85,180 | 68,175 | 56,982 | 260,257 | |||||||||||||||
Operating lease obligations — Ground leases (a) | 4,939 | 9,878 | 9,878 | 314,516 | 339,211 | |||||||||||||||
$ | 265,050 | $ | 187,162 | $ | 403,166 | $ | 933,735 | $ | 1,789,113 | |||||||||||
(a) | For purposes of our ground lease contracts, the Operating Partnership uses the minimum lease payment, if stated in the agreement. For ground lease agreements where there is a reset provision based on the communities appraised value or consumer price index but does not included a specified minimum lease payment, the Operating Partnership uses the current rent over the remainder of the lease term. |
66
Table of Contents
Item 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
67
Table of Contents
68
Table of Contents
Item 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
69
Table of Contents
70
Table of Contents
UDR, INC. | ||||
Date: February 27, 2012 | By: | /s/ Thomas W. Toomey | ||
Thomas W. Toomey | ||||
Chief Executive Officer and President | ||||
/s/ Thomas W. Toomey | /s/ Eric J. Foss | |||
Chief Executive Officer, President, and Director | Director | |||
/s/ David L. Messenger | /s/ Robert P. Freeman | |||
Senior Vice President and Chief Financial Officer | Director | |||
(Principal Financial and Accounting Officer) | ||||
/s/ James D. Klingbeil | /s/ Jon A. Grove | |||
Chairman of the Board | Director | |||
/s/ Lynne B. Sagalyn | /s/ Mark J. Sandler | |||
Vice Chair of the Board | Director | |||
/s/ Katherine A. Cattanach | /s/ Thomas C. Wajnert | |||
Director | Director |
71
Table of Contents
UNITED DOMINION REALTY, L.P. By: UDR, INC., its sole general partner | ||||
Date: February 27, 2012 | By: | /s/ Thomas W. Toomey | ||
Thomas W. Toomey | ||||
Chief Executive Officer and President | ||||
/s/ Thomas W. Toomey | /s/ Eric J. Foss | |||
Chief Executive Officer, President, and | Director of the General Partner | |||
Director of the General Partner | ||||
/s/ David L. Messenger | /s/ Robert P. Freeman | |||
Senior Vice President and Chief Financial | Director of the General Partner | |||
Officer of the General Partner | ||||
(Principal Financial and Accounting Officer) | ||||
/s/ James D. Klingbeil | /s/ Jon A. Grove | |||
Chairman of the Board of the General Partner | Director of the General Partner | |||
/s/ Lynne B. Sagalyn | /s/ Mark J. Sandler | |||
Vice Chair of the Board of the General Partner | Director of the General Partner | |||
/s/ Katherine A. Cattanach | /s/ Thomas C. Wajnert | |||
Director of the General Partner | Director of the General Partner |
72
Table of Contents
PAGE | ||||
FINANCIAL STATEMENTS FILED AS PART OF THIS REPORT | ||||
UDR, INC.: | ||||
74 | ||||
76 | ||||
77 | ||||
78 | ||||
79 | ||||
80 | ||||
UNITED DOMINION REALTY, L.P.: | ||||
119 | ||||
120 | ||||
121 | ||||
122 | ||||
123 | ||||
124 | ||||
SCHEDULES FILED AS PART OF THIS REPORT | ||||
UDR, INC.: | ||||
149 | ||||
UNITED DOMINION REALTY, L.P.: | ||||
154 |
73
Table of Contents
February 27, 2012
74
Table of Contents
February 27, 2012
75
Table of Contents
December 31, | ||||||||
2011 | 2010 | |||||||
ASSETS | ||||||||
Real estate owned: | ||||||||
Real estate held for investment | $ | 7,825,725 | $ | 6,198,667 | ||||
Less: accumulated depreciation | (1,831,157 | ) | (1,505,626 | ) | ||||
Real estate held for investment, net | 5,994,568 | 4,693,041 | ||||||
Real estate under development (net of accumlated depreciation of $570 and $0) | 248,176 | 97,912 | ||||||
Real estate held for sale (net of accumulated depreciation of $0 and $132,700) | — | 452,068 | ||||||
Total real estate owned, net of accumulated depreciation | 6,242,744 | 5,243,021 | ||||||
Cash and cash equivalents | 12,503 | 9,486 | ||||||
Marketable securities | — | 3,866 | ||||||
Restricted cash | 24,634 | 15,447 | ||||||
Deferred financing costs, net | 30,068 | 27,267 | ||||||
Notes receivable | — | 7,800 | ||||||
Investment in unconsolidated joint ventures | 213,040 | 148,057 | ||||||
Other assets | 198,365 | 74,596 | ||||||
Total assets | $ | 6,721,354 | $ | 5,529,540 | ||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Secured debt | $ | 1,891,553 | $ | 1,808,746 | ||||
Secured debt — real estate held for sale | — | 154,924 | ||||||
Unsecured debt | 2,026,817 | 1,603,834 | ||||||
Real estate taxes payable | 13,397 | 14,585 | ||||||
Accrued interest payable | 23,208 | 20,889 | ||||||
Security deposits and prepaid rent | 35,516 | 26,046 | ||||||
Distributions payable | 51,019 | 36,561 | ||||||
Deferred fees and gains on the sale of depreciable property | 29,100 | 28,943 | ||||||
Accounts payable, accrued expenses, and other liabilities | 95,485 | 105,925 | ||||||
Total liabilities | 4,166,095 | 3,800,453 | ||||||
Redeemable non-controlling interests in operating partnership | 236,475 | 119,057 | ||||||
Equity | ||||||||
Preferred stock, no par value; 50,000,000 shares authorized 2,803,812 shares of 8.00% Series E Cumulative Convertible issued and outstanding (2,803,812 shares at December 31, 2010) | 46,571 | 46,571 | ||||||
3,264,362 shares of 6.75% Series G Cumulative Redeemable issued and outstanding (3,405,562 shares at December 31, 2010) | 81,609 | 85,139 | ||||||
Common stock, $0.01 par value; 350,000,000 shares authorized 219,650,225 shares issued and outstanding (182,496,330 shares at December 31, 2010) | 2,197 | 1,825 | ||||||
Additional paid-in capital | 3,340,470 | 2,450,141 | ||||||
Distributions in excess of net income | (1,142,895 | ) | (973,864 | ) | ||||
Accumulated other comprehensive loss, net | (13,902 | ) | (3,469 | ) | ||||
Total stockholders’ equity | 2,314,050 | 1,606,343 | ||||||
Non-controlling interest | 4,734 | 3,687 | ||||||
Total equity | 2,318,784 | 1,610,030 | ||||||
Total liabilities and equity | $ | 6,721,354 | $ | 5,529,540 | ||||
76
Table of Contents
Years Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
REVENUES | ||||||||||||
Rental income | $ | 691,263 | $ | 574,084 | $ | 547,820 | ||||||
Non-property income: | ||||||||||||
Other income | 17,422 | 12,502 | 14,274 | |||||||||
Total revenues | 708,685 | 586,586 | 562,094 | |||||||||
EXPENSES | ||||||||||||
Rental expenses: | ||||||||||||
Real estate taxes and insurance | 84,007 | 70,762 | 67,533 | |||||||||
Personnel | 56,617 | 51,696 | 47,121 | |||||||||
Utilities | 37,405 | 31,564 | 29,153 | |||||||||
Repair and maintenance | 37,155 | 32,386 | 29,095 | |||||||||
Administrative and marketing | 15,411 | 14,643 | 12,920 | |||||||||
Property management | 19,009 | 15,788 | 15,066 | |||||||||
Other operating expenses | 5,990 | 5,773 | 6,473 | |||||||||
Real estate depreciation and amortization | 356,011 | 275,615 | 252,952 | |||||||||
Interest | ||||||||||||
Expense incurred | 151,144 | 140,869 | 135,317 | |||||||||
Amortization of convertible debt discount | 1,077 | 3,530 | 4,283 | |||||||||
Other debt charges/(gains) | 4,602 | 1,204 | (3,511 | ) | ||||||||
General and administrative | 45,915 | 45,243 | 39,035 | |||||||||
Severance costs and other restructuring charges | 1,342 | 6,803 | — | |||||||||
Other depreciation and amortization | 3,931 | 4,843 | 5,161 | |||||||||
Total expenses | 819,616 | 700,719 | 640,598 | |||||||||
Loss from operations | (110,931 | ) | (114,133 | ) | (78,504 | ) | ||||||
Loss from unconsolidated entities | (6,352 | ) | (4,204 | ) | (18,665 | ) | ||||||
Tax benefit/(expense) of taxable REIT subsidiary | 5,647 | 2,533 | (311 | ) | ||||||||
Loss from continuing operations | (111,636 | ) | (115,804 | ) | (97,480 | ) | ||||||
Income from discontinued operations, net of tax | 132,221 | 9,216 | 5,857 | |||||||||
Consolidated net income/(loss) | 20,585 | (106,588 | ) | (91,623 | ) | |||||||
Net (income)/loss attributable to redeemable non-controlling interests in OP | (395 | ) | 3,835 | 4,282 | ||||||||
Net income attributable to non-controlling interests | (167 | ) | (146 | ) | (191 | ) | ||||||
Net income/(loss) attributable to UDR, Inc. | 20,023 | (102,899 | ) | (87,532 | ) | |||||||
Distributions to preferred stockholders — Series E (Convertible) | (3,724 | ) | (3,726 | ) | (3,724 | ) | ||||||
Distributions to preferred stockholders — Series G | (5,587 | ) | (5,762 | ) | (7,188 | ) | ||||||
(Premium)/discount on preferred stock repurchases, net | (175 | ) | 25 | 2,586 | ||||||||
Net income/(loss) attributable to common stockholders | $ | 10,537 | $ | (112,362 | ) | $ | (95,858 | ) | ||||
Earnings per weighted average common share — basic and diluted: | ||||||||||||
Loss from continuing operations attributable to common stockholders | $ | (0.60 | ) | $ | (0.73 | ) | $ | (0.68 | ) | |||
Income from discontinued operations | $ | 0.66 | $ | 0.06 | $ | 0.04 | ||||||
Net income/(loss) attributable to common stockholders | $ | 0.05 | $ | (0.68 | ) | $ | (0.64 | ) | ||||
Common distributions declared per share | $ | 0.80 | $ | 0.73 | $ | 0.85 | ||||||
Weighted average number of common shares outstanding — basic and diluted | 201,294 | 165,857 | 149,090 |
77
Table of Contents
Years Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Operating Activities | ||||||||||||
Consolidated net income/(loss) | $ | 20,585 | $ | (106,588 | ) | $ | (91,623 | ) | ||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 374,274 | 308,289 | 283,552 | |||||||||
Net gain on sale of marketable securities | (3,123 | ) | (4,725 | ) | — | |||||||
Net gain on sale of cost investments | (3,946 | ) | — | — | ||||||||
Net gains on the sale of depreciable property | (125,928 | ) | (4,083 | ) | (2,424 | ) | ||||||
Gain on consolidation of joint ventures | — | — | (1,912 | ) | ||||||||
Write off of the fair market adjustment for debt paid off on consolidated joint venture | — | — | 1,552 | |||||||||
Loss/(gain) on debt extinguishment | 4,602 | 1,204 | (9,849 | ) | ||||||||
Write off of bad debt | 3,613 | 2,838 | 3,570 | |||||||||
Write off of note receivable and other assets | — | — | 1,354 | |||||||||
Loss from unconsolidated entities | 6,352 | 4,204 | 18,665 | |||||||||
Amortization of deferred financing costs and other | 8,696 | 8,957 | 7,953 | |||||||||
Amortization of deferred compensation | 9,815 | 11,411 | 7,605 | |||||||||
Amortization of convertible debt discount | 1,077 | 3,530 | 4,283 | |||||||||
Changes in income tax accruals | 1,424 | (865 | ) | 2,854 | ||||||||
Changes in operating assets and liabilities: | ||||||||||||
Decrease/(increase) in operating assets | (40,623 | ) | (5,332 | ) | 3,512 | |||||||
(Decrease)/increase in operating liabilities | (12,582 | ) | (4,660 | ) | 291 | |||||||
Net cash provided by operating activities | 244,236 | 214,180 | 229,383 | |||||||||
Investing Activities | ||||||||||||
Proceeds from sales of real estate investments, net | 321,803 | 20,738 | — | |||||||||
Proceeds from the sale of marketable securities | 9,799 | 39,488 | — | |||||||||
Acquisition of real estate assets (net of liabilities assumed) and initial capital expenditures | (989,029 | ) | (347,582 | ) | (28,528 | ) | ||||||
Cash paid in nonmonetary asset exchange | (28,124 | ) | — | — | ||||||||
Development of real estate assets | (98,683 | ) | (92,142 | ) | (183,157 | ) | ||||||
Capital expenditures and other major improvements — real estate assets, net of escrow reimbursement | (91,476 | ) | (73,977 | ) | (85,403 | ) | ||||||
Capital expenditures — non-real estate assets | (13,267 | ) | (4,342 | ) | (6,269 | ) | ||||||
Payments related to the buyout of joint venture partner | — | (16,141 | ) | — | ||||||||
Investment in unconsolidated joint ventures | (102,810 | ) | (110,921 | ) | (24,988 | ) | ||||||
Distributions received from/(paid to) unconsolidated joint venture | 11,202 | 1,125 | 1,741 | |||||||||
Proceeds from note receivable | 7,800 | — | 200,000 | |||||||||
Purchase deposits on pending real estate acquisitions | (80,397 | ) | — | — | ||||||||
Disbursements related to notes receivable | — | — | (500 | ) | ||||||||
Purchase of marketable securities | — | — | (30,941 | ) | ||||||||
Net cash used in investing activities | (1,053,182 | ) | (583,754 | ) | (158,045 | ) | ||||||
Financing Activities | ||||||||||||
Payments on secured debt | (336,004 | ) | (187,308 | ) | (159,612 | ) | ||||||
Proceeds from the issuance of secured debt | 30,728 | 68,380 | 560,436 | |||||||||
Proceeds from the issuance of unsecured debt | 296,964 | 399,190 | 100,000 | |||||||||
Payments on unsecured debt | (264,829 | ) | (79,236 | ) | (641,759 | ) | ||||||
Net (repayment)/proceeds of revolving bank debt | 389,250 | (157,550 | ) | 189,300 | ||||||||
Payment of financing costs | (13,465 | ) | (8,244 | ) | (8,650 | ) | ||||||
Issuance of common and restricted stock, net | 3,866 | 5,446 | 398 | |||||||||
Proceeds from the issuance of common shares through public offering, net | 879,754 | 467,565 | 67,151 | |||||||||
Payments for the repurchase of Series G preferred stock, net | (3,597 | ) | (637 | ) | (21,505 | ) | ||||||
Distributions paid to non-controlling interests | (10,947 | ) | (4,314 | ) | (7,275 | ) | ||||||
Distributions paid to preferred stockholders | (9,311 | ) | (9,488 | ) | (11,203 | ) | ||||||
Distributions paid to common stockholders | (150,446 | ) | (120,729 | ) | (144,576 | ) | ||||||
Repurchase of common stock | — | — | (798 | ) | ||||||||
Net cash provided by/(used in) financing activities | 811,963 | 373,075 | (78,093 | ) |
78
Table of Contents
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(In thousands, except for share data)
Years Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Net increase/(decrease) in cash and cash equivalents | 3,017 | 3,501 | (6,755 | ) | ||||||||
Cash and cash equivalents, beginning of year | 9,486 | 5,985 | 12,740 | |||||||||
Cash and cash equivalents, end of year | $ | 12,503 | $ | 9,486 | $ | 5,985 | ||||||
Supplemental Information: | ||||||||||||
Interest paid during the year, net of amounts capitalized | $ | 168,577 | $ | 154,843 | $ | 164,357 | ||||||
Non-cash transactions: | ||||||||||||
Real estate acquired in asset exchange | 268,853 | — | — | |||||||||
Real estate disposed in asset exchange | 192,576 | — | — | |||||||||
Contingent consideration accrued in business combination | 3,000 | — | — | |||||||||
OP Units issued in partial consideration for property acquisitions | 111,034 | — | — | |||||||||
Secured debt assumed in the acquisitions of properties, including asset exchange | 278,657 | 91,442 | — | |||||||||
Secured debt transferred in asset exchange | 55,356 | — | — | |||||||||
Fair market value adjustment of secured debt assumed in acquisitions of properties, including asset exchange | 26,880 | 1,820 | — | |||||||||
Fair market value of land contributed by non-controlling interest | 4,078 | — | — | |||||||||
Non-cash consideration to acquire non-real estate asset | 6,864 | — | — | |||||||||
Conversion of operating partnership non-controlling interests to Common Stock (12,511 in 2011; 923,944 in 2010; and 2,130,452 in 2009) | 287 | 18,429 | 21,117 | |||||||||
Retirement of fully depreciated assets | — | 8,680 | 4,407 | |||||||||
Issuance of restricted stock awards | 6 | 16 | 2 | |||||||||
Payment of Special Dividend through the issuance of 11,358,042 shares of Common Stock | — | — | 132,787 |
79
Table of Contents
Accumulated | ||||||||||||||||||||||||||||||||||||
Distributions in | Other | |||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-in | Excess of | Comprehensive | Non-controlling | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Net Income | Income/(Loss) | interest | Total | ||||||||||||||||||||||||||||
Balance, December 31, 2008 | 7,234,512 | $ | 157,339 | 137,423,074 | $ | 1,374 | $ | 1,717,940 | $ | (448,737 | ) | $ | (11,927 | ) | $ | 3,350 | $ | 1,419,339 | ||||||||||||||||||
Comprehensive (loss)/income | ||||||||||||||||||||||||||||||||||||
Net loss attributable to UDR, Inc. | — | — | — | — | — | (87,532 | ) | — | — | (87,532 | ) | |||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | — | — | — | 191 | 191 | |||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||
Change in fair value of marketable securities | — | — | — | — | — | — | 4,584 | — | 4,584 | |||||||||||||||||||||||||||
Unrealized gain on derivative financial instruments | — | — | — | — | — | — | 8,133 | — | 8,133 | |||||||||||||||||||||||||||
Allocation to redeemable non-controlling interests | — | — | — | — | — | — | (788 | ) | — | (788 | ) | |||||||||||||||||||||||||
Comprehensive income/(loss) | — | — | — | — | — | (87,532 | ) | 11,929 | 191 | (75,412 | ) | |||||||||||||||||||||||||
Issuance of common and restricted shares | — | — | 193,882 | 2 | 8,262 | — | — | — | 8,264 | |||||||||||||||||||||||||||
Issuance of common shares through public offering, net of issuance costs | — | — | 4,460,032 | 45 | 67,186 | 67,231 | ||||||||||||||||||||||||||||||
Redemption of 997,738 shares of 6.75% Series G Cumulative Redeemable Shares | (997,738 | ) | (24,944 | ) | — | — | 853 | 2,586 | — | — | (21,505 | ) | ||||||||||||||||||||||||
Purchase of common shares | — | — | (100,000 | ) | (1 | ) | (797 | ) | — | — | — | (798 | ) | |||||||||||||||||||||||
Adjustment for conversion of non-controlling interest in Series B and C LLC Series C, D and E LLC | — | — | — | — | 1,456 | — | — | — | 1,456 | |||||||||||||||||||||||||||
Adjustment for conversion of non-controlling interests of unitholders in operating partnerships | — | — | 2,130,452 | 21 | 21,096 | — | — | — | 21,117 | |||||||||||||||||||||||||||
Issuance of common shares through special dividend | — | — | 11,358,042 | 114 | 132,673 | — | — | — | 132,787 | |||||||||||||||||||||||||||
Common stock distributions declared ($0.845 per share) | — | — | — | — | — | (127,066 | ) | — | — | (127,066 | ) | |||||||||||||||||||||||||
Preferred stock distributions declared-Series E ($1.3288 per share) | — | — | — | — | — | (3,724 | ) | — | — | (3,724 | ) | |||||||||||||||||||||||||
Preferred stock distributions declared-Series G ($1.6875 per share) | — | — | — | — | — | (7,188 | ) | — | — | (7,188 | ) | |||||||||||||||||||||||||
Adjustment to reflect redeemable non-controlling redemption value | — | — | — | — | — | (15,519 | ) | — | (15,519 | ) | ||||||||||||||||||||||||||
Balance, December 31, 2009 | 6,236,774 | 132,395 | 155,465,482 | 1,555 | 1,948,669 | (687,180 | ) | 2 | 3,541 | 1,398,982 | ||||||||||||||||||||||||||
Comprehensive (loss)/income | ||||||||||||||||||||||||||||||||||||
Net loss attributable to UDR, Inc. | — | — | — | — | — | (102,899 | ) | — | (102,899 | ) | ||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | — | — | — | 146 | 146 | |||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||
Change in fair value of marketable securities | — | — | — | — | — | — | (1,092 | ) | — | (1,092 | ) | |||||||||||||||||||||||||
Unrealized loss on derivative financial instruments | — | — | — | — | — | — | (2,497 | ) | — | (2,497 | ) | |||||||||||||||||||||||||
Allocation to redeemable non-controlling interests | — | — | — | — | — | — | 118 | — | 118 | |||||||||||||||||||||||||||
Comprehensive income/(loss) | — | — | — | — | — | (102,899 | ) | (3,471 | ) | 146 | (106,224 | ) | ||||||||||||||||||||||||
Issuance of common and restricted shares | — | — | 1,562,537 | 16 | 15,710 | — | — | — | 15,726 | |||||||||||||||||||||||||||
Issuance of common shares through public offering | — | — | 24,544,367 | 245 | 467,319 | 467,564 | ||||||||||||||||||||||||||||||
Repurchase of 27,400 shares of 6.75% Series G Cumulative Redeemable Shares | (27,400 | ) | (685 | ) | 23 | 25 | — | — | (637 | ) | ||||||||||||||||||||||||||
Adjustment for conversion of non-controlling interests of unitholders in operating partnerships | — | — | 923,944 | 9 | 18,420 | — | — | — | 18,429 | |||||||||||||||||||||||||||
Common stock distributions declared ($0.73 per share) | — | — | — | — | — | (126,086 | ) | — | — | (126,086 | ) | |||||||||||||||||||||||||
Preferred stock distributions declared-Series E ($1.3288 per share) | — | — | — | — | — | (3,726 | ) | — | — | (3,726 | ) | |||||||||||||||||||||||||
Preferred stock distributions declared-Series G ($1.6875 per share) | — | — | — | — | — | (5,762 | ) | — | — | (5,762 | ) | |||||||||||||||||||||||||
Adjustment to reflect redeemable non-controlling redemption value | — | — | — | — | — | (48,236 | ) | — | (48,236 | ) | ||||||||||||||||||||||||||
Balance, December 31, 2010 | 6,209,374 | $ | 131,710 | 182,496,330 | 1,825 | 2,450,141 | (973,864 | ) | (3,469 | ) | 3,687 | 1,610,030 | ||||||||||||||||||||||||
Comprehensive (loss)/income | ||||||||||||||||||||||||||||||||||||
Net income attributable to UDR, Inc. | — | — | — | — | — | 20,023 | — | 20,023 | ||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | — | — | — | — | 167 | 167 | |||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||
Change in fair value of marketable securities | — | — | — | — | — | — | (3,492 | ) | — | (3,492 | ) | |||||||||||||||||||||||||
Unrealized loss on derivative financial instruments | — | — | — | — | — | — | (7,345 | ) | — | (7,345 | ) | |||||||||||||||||||||||||
Allocation to redeemable non-controlling interests | — | — | — | — | — | — | 404 | — | 404 | |||||||||||||||||||||||||||
Comprehensive income/(loss) | — | — | — | — | — | 20,023 | (10,433 | ) | 167 | 9,757 | ||||||||||||||||||||||||||
Issuance of common and restricted shares | — | — | 615,752 | 6 | 10,996 | — | — | — | 11,002 | |||||||||||||||||||||||||||
Issuance of common shares through public offering | — | — | 36,525,632 | 366 | 879,388 | 879,754 | ||||||||||||||||||||||||||||||
Repurchase of 141,200 shares of 6.75% Series G Cumulative Redeemable Shares | (141,200 | ) | (3,530 | ) | 108 | (175 | ) | — | — | (3,597 | ) | |||||||||||||||||||||||||
Adjustment for conversion of non-controlling interests of unitholders in operating partnerships | — | — | 12,511 | — | 287 | — | — | — | 287 | |||||||||||||||||||||||||||
Acquistion of noncontrolling interest | — | — | — | — | (450 | ) | — | — | — | (450 | ) | |||||||||||||||||||||||||
Increase in non-controlling interest from business combination, net | — | — | — | — | — | — | — | 880 | 880 | |||||||||||||||||||||||||||
Common stock distributions declared ($0.80 per share) | — | — | — | — | — | (165,590 | ) | — | — | (165,590 | ) | |||||||||||||||||||||||||
Preferred stock distributions declared-Series E ($1.3288 per share) | — | — | — | — | — | (3,724 | ) | — | — | (3,724 | ) | |||||||||||||||||||||||||
Preferred stock distributions declared-Series G ($1.6875 per share) | — | — | — | — | — | (5,587 | ) | — | — | (5,587 | ) | |||||||||||||||||||||||||
Adjustment to reflect redeemable non-controlling redemption value | — | — | — | — | — | (13,978 | ) | — | (13,978 | ) | ||||||||||||||||||||||||||
Balance, December 31, 2011 | 6,068,174 | $ | 128,180 | 219,650,225 | $ | 2,197 | $ | 3,340,470 | $ | (1,142,895 | ) | $ | (13,902 | ) | $ | 4,734 | $ | 2,318,784 | ||||||||||||||||||
80
Table of Contents
81
Table of Contents
82
Table of Contents
83
Table of Contents
84
Table of Contents
85
Table of Contents
86
Table of Contents
Years Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Numerator for earnings per share — basic and diluted: | ||||||||||||
Net income/(loss) attributable to common stockholders | $ | 10,537 | $ | (112,362 | ) | $ | (95,858 | ) | ||||
Denominator for earnings per share — basic and diluted: | ||||||||||||
Weighted average common shares outstanding | 202,573 | 167,365 | 150,067 | |||||||||
Non-vested restricted stock awards | (1,279 | ) | (1,508 | ) | (977 | ) | ||||||
Denominator for basic and diluted earnings per share | 201,294 | 165,857 | 149,090 | |||||||||
Net income/(loss) attributable to common stockholders — basic and diluted | $ | 0.05 | $ | (0.68 | ) | $ | (0.64 | ) | ||||
87
Table of Contents
New York, New York markets.
88
Table of Contents
December 31, | ||||||||
2011 | 2010 | |||||||
Land | $ | 1,919,249 | $ | 1,611,740 | ||||
Depreciable property — held and used: | ||||||||
Building and improvements | 5,612,513 | 4,313,338 | ||||||
Furniture, fixtures and equipment | 293,963 | 273,589 | ||||||
Under development: | ||||||||
Land | 116,051 | 62,410 | ||||||
Construction in progress | 132,695 | 35,502 | ||||||
Held for sale: | ||||||||
Land | — | 171,967 | ||||||
Building and improvements | — | 383,076 | ||||||
Furniture, fixtures and equipment | — | 29,725 | ||||||
Real estate owned | 8,074,471 | 6,881,347 | ||||||
Accumulated depreciation | (1,831,727 | ) | (1,638,326 | ) | ||||
Real estate owned, net | $ | 6,242,744 | $ | 5,243,021 | ||||
Purchase | ||||||||||||||||
Property Name | Market | Acquisition Date | Units | Price (a) | ||||||||||||
10 Hanover Square | New York, NY | April 2011 | 493 | $ | 259,750 | |||||||||||
388 Beale | San Francisco, CA | April 2011 | 227 | 90,500 | ||||||||||||
14 North | Boston, MA | April 2011 | 387 | 64,500 | ||||||||||||
Inwood West | Boston, MA | April 2011 | 446 | 108,000 | ||||||||||||
View 14 | Metropolitan D.C. | June 2011 | 185 | 105,538 | ||||||||||||
Rivergate | New York, NY | July 2011 | 706 | 443,403 | ||||||||||||
21 Chelsea | New York, NY | August 2011 | 210 | 138,930 | ||||||||||||
95 Wall | New York, NY | August 2011 | 507 | 328,914 | ||||||||||||
3,161 | $ | 1,539,535 | ||||||||||||||
(a) | The purchase price is the contractual sales price between UDR and the third party and does not include any costs that the Company incurred in the pursuit of the property or the recorded difference between the agreed upon value and the fair value of the OP Units issued as part of the consideration paid. |
89
Table of Contents
90
Table of Contents
December 31, | ||||||||
2011 | 2010 | |||||||
Pro forma revenues | $ | 740,342 | $ | 712,380 | ||||
Pro forma loss attributable to common stockholders | (4,309 | ) | (109,442 | ) | ||||
Proforma loss attributable to common stockholders — basic | (0.02 | ) | (0.64 | ) | ||||
Pro forma loss attributable to common stockholders — diluted | (0.02 | ) | (0.64 | ) |
91
Table of Contents
December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Rental income | $ | 39,695 | $ | 59,784 | $ | 55,079 | ||||||
Non-property income | — | 1,845 | — | |||||||||
39,695 | 61,629 | 55,079 | ||||||||||
Rental expenses | 15,603 | 21,753 | 18,617 | |||||||||
Property management fee | 1,092 | 1,644 | 1,515 | |||||||||
Real estate depreciation | 14,332 | 27,831 | 25,439 | |||||||||
Interest | 1,510 | 5,193 | 6,063 | |||||||||
Other expense | 227 | 75 | 12 | |||||||||
32,764 | 56,496 | 51,646 | ||||||||||
Income before net gain on the sale of depreciable property and income taxes | 6,931 | 5,133 | 3,433 | |||||||||
Gain on the sale of depreciable property | 138,508 | 4,083 | 2,424 | |||||||||
Income tax expense | (13,218 | ) | — | — | ||||||||
Income from discontinued operations | $ | 132,221 | $ | 9,216 | $ | 5,857 | ||||||
92
Table of Contents
93
Table of Contents
Year ended December 31, | ||||||||||||
2011 | 2010 | 2009 (a) | ||||||||||
For the year ended: | ||||||||||||
Revenues | $ | 201,368 | $ | 60,234 | $ | 48,575 | ||||||
Real estate depreciation and amortization | 69,290 | 28,744 | 21,133 | |||||||||
Net loss | (21,724 | ) | (29,737 | ) | (11,719 | ) | ||||||
UDR recorded loss from unconsolidated entities | 6,352 | 4,204 | 18,665 |
(a) | Includes results of operations of joint ventures previously accounted for under the equity method through the effective date of consolidation. |
94
Table of Contents
2011 | 2010 | |||||||
Real estate, net | $ | 2,908,623 | $ | 2,692,167 | ||||
Total assets | 2,998,866 | 2,807,886 | ||||||
Amount due to UDR | 6,251 | 672 | ||||||
Third party debt | 1,499,419 | 1,524,872 | ||||||
Total liabilities | 1,561,396 | 1,580,733 | ||||||
Total Equity | 1,437,470 | 1,227,153 | ||||||
Equity held by non-controlling interest | 14,641 | 14,537 |
95
Table of Contents
For the Year Ended December 31, 2011 | ||||||||||||||||||||
Principal Outstanding | Weighted | Weighted | Number of | |||||||||||||||||
December 31, | Average | Average | Communities | |||||||||||||||||
2011 | 2010 | Interest Rate | Years to Maturity | Encumbered | ||||||||||||||||
Fixed Rate Debt | ||||||||||||||||||||
Mortgage notes payable | $ | 590,208 | $ | 292,236 | 5.10 | % | 4.7 | 10 | ||||||||||||
Tax-exempt secured notes payable | — | 13,325 | NA | — | — | |||||||||||||||
Fannie Mae credit facilities | 744,509 | 897,318 | 5.14 | % | 6.0 | 12 | ||||||||||||||
Total fixed rate secured debt | 1,334,717 | 1,202,879 | 5.12 | % | 5.4 | 22 | ||||||||||||||
Variable Rate Debt | ||||||||||||||||||||
Mortgage notes payable | 151,685 | 405,641 | 2.08 | % | 1.4 | 6 | ||||||||||||||
Tax-exempt secured notes payable | 94,700 | 94,700 | 0.77 | % | 10.6 | 2 | ||||||||||||||
Fannie Mae credit facilities | 310,451 | 260,450 | 1.63 | % | 4.6 | 28 | ||||||||||||||
Total variable rate secured debt | 556,836 | 760,791 | 1.60 | % | 4.8 | 36 | ||||||||||||||
Total secured debt | $ | 1,891,553 | $ | 1,963,670 | 4.10 | % | 5.2 | 58 | ||||||||||||
December 31, | ||||||||
2011 | 2010 | |||||||
(dollar amounts in thousands) | ||||||||
Borrowings outstanding | $ | 1,054,960 | $ | 1,157,768 | ||||
Weighted average borrowings during the period ended | 1,139,588 | 1,198,771 | ||||||
Maximum daily borrowings during the period ended | 1,157,557 | 1,209,739 | ||||||
Weighted average interest rate during the period ended | 4.4 | % | 4.6 | % | ||||
Weighted average interest rate at the end of the period | 4.1 | % | 4.5 | % |
96
Table of Contents
97
Table of Contents
Fixed | Variable | |||||||||||||||||||||||
Mortgage | Credit | Mortgage | Tax-Exempt | Credit | Total | |||||||||||||||||||
Year | Notes | Facilities | Notes | Notes Payable | Facilities | Secured | ||||||||||||||||||
2012 | $ | 65,480 | $ | 77,944 | $ | 64,345 | $ | — | $ | 99,042 | $ | 306,811 | ||||||||||||
2013 | 23,378 | 38,632 | 62,490 | — | — | 124,500 | ||||||||||||||||||
2014 | 81,101 | 3,328 | 24,850 | — | — | 109,279 | ||||||||||||||||||
2015 | 201,691 | 3,522 | — | — | — | 205,213 | ||||||||||||||||||
2016 | 140,180 | 3,702 | — | — | — | 143,882 | ||||||||||||||||||
Thereafter | 78,378 | 617,381 | — | 94,700 | 211,409 | 1,001,868 | ||||||||||||||||||
Total | $ | 590,208 | $ | 744,509 | $ | 151,685 | $ | 94,700 | $ | 310,451 | $ | 1,891,553 | ||||||||||||
December 31, | ||||||||
2011 | 2010 | |||||||
Commercial Banks | ||||||||
Borrowings outstanding under an unsecured credit facility due October 2015 (a), (i) | $ | 421,000 | $ | — | ||||
Borrowings outstanding under an unsecured credit facility due July 2012 (b) | — | 31,750 | ||||||
Senior Unsecured Notes | ||||||||
5.00% Medium-Term Notes due January 2012 | 100,000 | 100,000 | ||||||
1.71% Term Notes due December 2016 (i) | 100,000 | 100,000 | ||||||
6.05% Medium-Term Notes due June 2013 | 122,500 | 122,500 | ||||||
5.13% Medium-Term Notes due January 2014 | 184,000 | 184,000 | ||||||
5.50% Medium-Term Notes due April 2014 (net of discount of $157 and $226) | 128,343 | 128,274 | ||||||
5.25% Medium-Term Notes due January 2015 (includes discount of $390 and $519) (c) | 324,785 | 324,656 | ||||||
5.25% Medium-Term Notes due January 2016 | 83,260 | 83,260 | ||||||
2.90% Term Notes due January 2016 (d), (i) | 250,000 | 100,000 | ||||||
2.27% Term Notes due January 2016 (d) | — | 150,000 | ||||||
8.50% Debentures due September 2024 | 15,644 | 15,644 | ||||||
4.25% Medium-Term Notes due June 2018 (net of discount of $2,751) (e), (i) | 297,249 | — | ||||||
4.00% Convertible Senior Notes due December 2035 (f), (g) | — | 167,750 | ||||||
3.625% Convertible Senior Notes due September 2011 (net of Subtopic 470-20 discount of $1,138 at December 31, 2010) (h), (g) | — | 95,961 | ||||||
Other | 36 | 39 | ||||||
1,605,817 | 1,572,084 | |||||||
$ | 2,026,817 | $ | 1,603,834 | |||||
98
Table of Contents
(a) | On October 25, 2011, the Company entered into a $900 million unsecured revolving credit facility, replacing the Company’s $600 million facility noted in (b) below. The unsecured credit facility has an initial term of four years and includes a one-year extension option, and contains an accordion feature that allows the Company to increase the facility to $1.35 billion. Based on the Company’s current credit ratings, the credit facility carries an interest rate equal to LIBOR plus a spread of 122.5 basis points and a facility fee of 22.5 basis points (1.53% at December 31, 2011). | |
(b) | The unsecured credit facility provided us with an aggregate borrowing capacity of $600 million, which we could have increased to $750 million at our election under certain circumstances. The unsecured credit facility with a consortium of financial institutions carried an interest rate equal to LIBOR plus a spread of 47.5 basis points (0.89% interest rate at December 31, 2010). The facility was replaced in October 2011. | |
(c) | On December 7, 2009, the Company entered into an Amended and Restated Distribution Agreement with respect to the issue and sale by the Company from time to time of its Medium-Term Notes, Series A Due Nine Months or More From Date of Issue. During the three months ended March 31, 2010, the Company issued $150 million of 5.25% senior unsecured medium-term notes under the Amended and Restated Distribution Agreement. These notes were priced at 99.46% of the principal amount at issuance and had an unamortized discount of $390,000 and $519,000 at December 31, 2011 and 2010, respectively. | |
(d) | During the three months ended March 31, 2011, the Company entered into a new interest rate swap agreement for the remaining $150 million balance. In October 2011, the Company repriced the $250 million unsecured term loan such that the debt currently carries a floating rate of 142.5 basis points over LIBOR, below the previous pricing of 200 basis points over LIBOR. | |
(e) | On May 3, 2011, the Company entered into a Second Amended and Restated Distribution Agreement with respect to the issue and sale by the Company from time to time of its Medium-Term Notes, Series A Due Nine Months or More From Date of Issue. During the three months ended June 30, 2011, the Company issued $300 million of 4.25% senior unsecured medium-term notes under the Amended and Restated Distribution Agreement. These notes were priced at 98.988% of the principal amount at issuance and had a discount of $2.8 million at December 31, 2011. | |
(f) | During the year ended December 31, 2011, holders of the 4.00% Convertible Senior Notes due 2035 tendered $10.8 million of Notes. As a result, the Company retired debt with a notional value of $10.8 million and wrote off unamortized financing costs of $207,000. | |
On March 2, 2011, the Company called all of its outstanding 4.00% Convertible Senior Notes due 2035. The redemption date for the Notes was April 4, 2011, and the redemption price was 100% of the principal amount of the outstanding Notes, plus accrued and unpaid interest on the Notes to, but not including, the date of redemption. Subject to and in accordance with the terms and conditions set forth in the Indenture governing the Notes dated as of December 19, 2005, holders of Notes had the right to convert their Notes at any time until March 31, 2011, at a conversion rate of 38.8650 shares of our common stock per $1,000 principal amount of Notes (equivalent to a conversion price of approximately $25.73 per share). The Company accelerated the amortization of the remaining financing costs of $3.0 million to the April 4, 2011 redemption date during the year ended December 31, 2011. | ||
(g) | ASC Subtopic 470-20 applies to all convertible debt instruments that have a “net settlement feature”, which means that such convertible debt instruments, by their terms, may be settled either wholly or partially in cash upon conversion. This guidance requires issuers of convertible debt instruments that may be settled wholly or partially in cash upon conversion to separately account for the liability and equity components in a manner reflective of the issuers’ nonconvertible debt borrowing rate. The guidance impacted the historical accounting for the 3.625% convertible senior notes due September 2011 and the 4.00% convertible senior notes due December 2035, and resulted in increased interest expense of $1.1 million, $3.5 million, and $4.3 million for the years ended December 31, 2011, 2010, and 2009, respectively. | |
(h) | During the year ended December 31, 2011, the Company paid $97.1 million at maturity. | |
(i) | The Operating Partnership is a guarantor at December 31, 2011. |
99
Table of Contents
December 31, | ||||||||
2011 | 2010 | |||||||
Total revolving credit facility | $ | 900,000 | $ | 600,000 | ||||
Borrowings outstanding at end of year (1) | 421,000 | 31,750 | ||||||
Weighted average daily borrowings during the year ended | 227,498 | 161,260 | ||||||
Maximum daily borrowings during the year ended | 450,000 | 337,600 | ||||||
Weighted average interest rate during the year ended | 1.0 | % | 0.8 | % | ||||
Interest rate at end of the year | 1.5 | % | 0.9 | % |
(1) | Excludes $3.6 million of letters of credit at December 31, 2011 |
Bank | Unsecured | Total | ||||||||||
Year | Lines | Debt | Unsecured | |||||||||
2012 | $ | — | $ | 99,386 | $ | 99,386 | ||||||
2013 | — | 121,886 | 121,886 | |||||||||
2014 | — | 311,930 | 311,930 | |||||||||
2015 | 421,000 | 324,744 | 745,744 | |||||||||
2016 | — | 432,840 | 432,840 | |||||||||
Thereafter | — | 315,031 | 315,031 | |||||||||
Total | $ | 421,000 | $ | 1,605,817 | $ | 2,026,817 | ||||||
• | Issued 15,825,632 shares of common stock in connection with an “at the market” equity distribution program where we received net proceeds of approximately $383.8 million; |
• | Issued 20,700,000 shares of common stock in connection with an underwritten public offering where we received net proceeds of approximately $496.3 million; |
• | Issued 691,346 shares of common stock in connection with stock options exercised; |
• | Issued 199,539 shares of common stock through the Company’s 1999 Long-Term Incentive Plan (the “LTIP”), net of forfeitures of 116,059; and |
• | Converted 12,511 OP Units into Company common stock. |
100
Table of Contents
101
Table of Contents
Option Outstanding | Option Exercisable | Restricted Stock | ||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||
Average | Average | Average Fair | ||||||||||||||||||||||
Number of | Exercise | Number of | Exercise | Number | Value Per | |||||||||||||||||||
Options | Price | Options | Price | Of shares | Restricted Stock | |||||||||||||||||||
Balance, December 31, 2010 | 3,837,177 | $ | 12.00 | 1,880,168 | $ | 13.19 | 1,433,299 | $ | 27.06 | |||||||||||||||
Granted | — | — | 199,539 | 23.14 | ||||||||||||||||||||
Exercised | (937,377 | ) | 10.24 | — | — | |||||||||||||||||||
Vested | — | — | (309,013 | ) | 19.78 | |||||||||||||||||||
Forfeited | (208,998 | ) | 12.00 | (116,059 | ) | 19.43 | ||||||||||||||||||
Balance, December 31, 2011 | 2,690,802 | $ | 12.61 | 1,905,015 | $ | 13.25 | 1,207,766 | $ | 16.24 | |||||||||||||||
102
Table of Contents
December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Ordinary income | $ | 0.49 | $ | 0.69 | $ | 0.08 | ||||||
Long-term capital gain | 0.07 | 0.03 | 0.54 | |||||||||
Unrecapture section 1250 gain | 0.21 | 0.01 | 0.05 | |||||||||
$ | 0.77 | $ | 0.73 | $ | 0.67 | |||||||
103
Table of Contents
December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Income tax expense/(benefit) | ||||||||||||
Current | ||||||||||||
Federal | $ | 463 | $ | (3,510 | ) | $ | (11,925 | ) | ||||
State | 552 | 977 | (2,573 | ) | ||||||||
Total current | 1,015 | (2,533 | ) | (14,498 | ) | |||||||
Deferred | ||||||||||||
Federal | 6,646 | 119 | 12,030 | |||||||||
State | (90 | ) | (119 | ) | 2,779 | |||||||
Total deferred | 6,556 | — | 14,809 | |||||||||
Total income tax expense/(benefit) | $ | 7,571 | $ | (2,533 | ) | $ | 311 | |||||
Classification of income tax (benefit)/expense | ||||||||||||
Continuing operations | $ | (5,647 | ) | $ | (2,533 | ) | $ | 311 | ||||
Discontinued operations | 13,218 | — | — |
2011 | 2010 | 2009 | ||||||||||
Deferred tax assets: | ||||||||||||
Federal and state tax attributes | $ | 24,524 | $ | 33,053 | $ | 20,239 | ||||||
Book/tax depreciation | 10,045 | 9,708 | 3,946 | |||||||||
Construction capitalization differences | 5,948 | 5,235 | 3,045 | |||||||||
Investment in partnerships | 3,618 | 3,346 | 4,711 | |||||||||
Debt and interest deductions | — | 10,784 | 8,175 | |||||||||
Other | 999 | 586 | 285 | |||||||||
Total deferred tax assets | 45,134 | 62,712 | 40,401 | |||||||||
Valuation allowance | (45,134 | ) | (55,516 | ) | (33,554 | ) | ||||||
Net deferred tax assets | — | 7,196 | 6,847 | |||||||||
Deferred tax liabilities: | ||||||||||||
Other | — | (640 | ) | (291 | ) | |||||||
Total deferred tax liabilities | — | (640 | ) | (291 | ) | |||||||
Net deferred tax asset | $ | — | $ | 6,556 | $ | 6,556 | ||||||
104
Table of Contents
December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Income tax expense/(benefit) | ||||||||||||
U.S. federal income tax expense/(benefit) | $ | 11,715 | $ | (16,006 | ) | $ | (17,042 | ) | ||||
State income tax provision/(benefit) | 2,099 | 19 | (1,391 | ) | ||||||||
Other items | 1,227 | (5,100 | ) | 1,260 | ||||||||
Valuation allowance | (7,470 | ) | 18,554 | 17,484 | ||||||||
Total income tax expense/(benefit) | $ | 7,571 | $ | (2,533 | ) | $ | 311 | |||||
105
Table of Contents
Years Ended December 31, | ||||||||
2011 | 2010 | |||||||
Redeemable noncontrolling interests in the OP, December 31, 2010 | $ | 119,057 | $ | 98,758 | ||||
Mark to market adjustment to redeemable noncontrolling interests in the OP | 13,978 | 48,236 | ||||||
Conversion of OP Units to Common Stock | (287 | ) | (18,429 | ) | ||||
Repurchase of OP Units from redeemable noncontrolling interests | — | (327 | ) | |||||
Net income/(loss) attributable to redeemable noncontrolling interests in the OP | 395 | (3,835 | ) | |||||
OP units issued for partial consideration in community acquisition | 111,034 | — | ||||||
Distributions to redeemable noncontrolling interests in the OP | (7,298 | ) | (5,228 | ) | ||||
Allocation of other comprehensive (loss)/income | (404 | ) | (118 | ) | ||||
Ending redeemable noncontrolling interests in the OP | $ | 236,475 | $ | 119,057 | ||||
Years Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Net income/(loss) attributable to common stockholders | $ | 10,537 | $ | (112,362 | ) | $ | (95,858 | ) | ||||
Conversion of OP units to UDR Common Stock | 287 | 18,429 | 21,117 | |||||||||
Change in equity from net income/(loss) attributable to common stockholders and conversion of OP units to UDR Common Stock | $ | 10,824 | $ | (93,933 | ) | $ | (74,741 | ) | ||||
106
Table of Contents
• | 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. |
Fair Value at December 31, 2011 Using | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets | ||||||||||||||||
for Identical | Significant Other | Significant | ||||||||||||||
Assets or | Observable | Unobservable | ||||||||||||||
Liabilities | Inputs | Inputs | ||||||||||||||
December 31, 2011 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Description: | ||||||||||||||||
Derivatives- Interest rate contracts (c) | $ | 89 | $ | — | $ | 89 | $ | — | ||||||||
Total assets | $ | 89 | $ | — | $ | 89 | $ | — | ||||||||
Derivatives- Interest rate contracts (c) | $ | 13,660 | $ | — | $ | 13,660 | $ | — | ||||||||
Contingent purchase Consideration (d) | 3,000 | — | — | 3,000 | ||||||||||||
Secured debt instruments- fixed rate: (a) | ||||||||||||||||
Mortgage notes payable | 635,531 | — | — | 635,531 | ||||||||||||
Fannie Mae credit facilities | 799,584 | — | — | 799,584 | ||||||||||||
Secured debt instruments- variable rate: (a) | — | |||||||||||||||
Mortgage notes payable | 151,685 | — | — | 151,685 | ||||||||||||
Tax-exempt secured notes payable | 94,700 | — | — | 94,700 | ||||||||||||
Fannie Mae credit facilities | 310,451 | — | — | 310,451 | ||||||||||||
Unsecured debt instruments: (b) | — | �� | ||||||||||||||
Commercial bank | 421,000 | — | — | 421,000 | ||||||||||||
Senior Unsecured Notes | 1,675,189 | — | — | 1,675,189 | ||||||||||||
Total liabilities | $ | 4,104,800 | $ | — | $ | 13,660 | $ | 4,091,140 | ||||||||
107
Table of Contents
Fair Value at December 31, 2010 Using | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets | ||||||||||||||||
for Identical | Significant Other | Significant | ||||||||||||||
Assets or | Observable | Unobservable | ||||||||||||||
Liabilities | Inputs | Inputs | ||||||||||||||
December 31, 2010 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Description: | ||||||||||||||||
Available-for-sale equity securities | $ | 3,866 | $ | 3,866 | $ | — | $ | — | ||||||||
Derivatives- Interest rate contracts (c) | 514 | — | 514 | — | ||||||||||||
Total assets | $ | 4,380 | $ | 3,866 | $ | 514 | $ | — | ||||||||
Derivatives- Interest rate contracts (c) | $ | 6,597 | $ | — | $ | 6,597 | $ | — | ||||||||
Contingent purchase consideration (d) | 5,402 | — | — | 5,402 | ||||||||||||
Secured debt instruments- fixed rate: (a) | ||||||||||||||||
Mortgage notes payable | 306,515 | — | — | 306,515 | ||||||||||||
Tax-exempt secured notes payable | 13,885 | — | — | 13,885 | ||||||||||||
Fannie Mae credit facilities | 927,413 | — | — | 927,413 | ||||||||||||
Secured debt instruments- variable rate: (a) | ||||||||||||||||
Mortgage notes payable | 405,641 | — | — | 405,641 | ||||||||||||
Tax-exempt secured notes payable | 94,700 | — | — | 94,700 | ||||||||||||
Fannie Mae credit facilities | 260,450 | — | — | 260,450 | ||||||||||||
Unsecured debt instruments: (b) | ||||||||||||||||
Commercial bank | 31,750 | — | — | 31,750 | ||||||||||||
Senior Unsecured Notes | 1,625,492 | 264,849 | — | 1,360,643 | ||||||||||||
Total liabilities | $ | 3,677,845 | $ | 264,849 | $ | 6,597 | $ | 3,406,399 | ||||||||
Redeemable Non-controlling Interests | $ | 119,057 | $ | — | $ | 119,057 | $ | — | ||||||||
(a) | See Note 6,Secured Debt | |
(b) | See Note 7,Unsecured Debt | |
(c) | See Note 13,Derivatives and Hedging Activity | |
(d) | In the first quarter of 2010, the Company accrued a liability of $6.0 million related to a contingent purchase consideration on one of its properties. The contingent consideration was determined based on the fair market value of the related asset which is estimated using Level 3 inputs utilized in a third party appraisal. The Company paid approximately $635,000 of the liability during the year ended December 31, 2010. The remaining balance of $5.4 million was paid during the year ended December 31, 2011 in conjunction with the sale of the property. The fair value of the contingent purchase consideration is also inclusive of $3.0 million accrued in relation to our acquisition of a development property in a consolidated joint venture as of and during the year ended December 31, 2011. (See Note 5,Joint Ventures.) |
108
Table of Contents
109
Table of Contents
110
Table of Contents
Number of | ||||||||
Interest Rate Derivative | Instruments | Notional | ||||||
Interest rate swaps | 13 | $ | 509,787 | |||||
Interest rate caps | 5 | 274,291 |
Number of | ||||||||
Product | Instruments | Notional | ||||||
Interest rate caps | 3 | $ | 172,697 |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||
Fair Value at | Fair Value at | |||||||||||||||||||||||
Balance | December 31, | Balance | December 31, | |||||||||||||||||||||
Sheet Location | 2011 | 2010 | Sheet Location | 2011 | 2010 | |||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Interest Rate Products | Other Assets | $ | 71 | $ | 243 | Other Liabilities | $ | 13,660 | $ | 6,597 | ||||||||||||||
Total | $ | 71 | $ | 243 | $ | 13,660 | $ | 6,597 | ||||||||||||||||
Derivativesnotdesignated as hedging instruments: | ||||||||||||||||||||||||
Interest Rate Products | Other Assets | $ | 18 | $ | 271 | Other Liabilities | $ | — | $ | — | ||||||||||||||
Total | $ | 18 | $ | 271 | $ | — | $ | — | ||||||||||||||||
111
Table of Contents
Statements of Operations
Location of Loss | ||||||||||||||||||||||||||||||||||||||||||||
Recognized in | ||||||||||||||||||||||||||||||||||||||||||||
Income on | ||||||||||||||||||||||||||||||||||||||||||||
Derivative | Amount of Loss Recognized | |||||||||||||||||||||||||||||||||||||||||||
Location of Loss | Amount of Loss | (Ineffective Portion | in Income on Derivative | |||||||||||||||||||||||||||||||||||||||||
Derivatives in | Amount of Loss Recognized | Reclassified from | Reclassified from | and Amount | (Ineffective Portion and | |||||||||||||||||||||||||||||||||||||||
Cash Flow | in OCI on Derivative | Accumulated OCI | Accumulated OCI into | Excluded from | Amount Excluded from | |||||||||||||||||||||||||||||||||||||||
Hedging | (Effective Portion) | into Income (Effective | Income (Effective Portion) | Effectiveness | Effectiveness Testing) | |||||||||||||||||||||||||||||||||||||||
Relationships | December 31, | Portion) | December 31, | Testing) | December 31, | |||||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2011 | 2010 | 2009 | 2011 | 2010 | 2009 | ||||||||||||||||||||||||||||||||||||
Interest Rate Products | $ | (16,477 | ) | $ | (9,273 | ) | $ | (3,949 | ) | Interest expense | $ | (9,132 | ) | $ | (6,777 | ) | $ | (12,082 | ) | Other expense | $ | (58 | ) | $ | (1 | ) | $ | — | ||||||||||||||||
Total | $ | (16,477 | ) | $ | (9,273 | ) | $ | (3,949 | ) | $ | (9,132 | ) | $ | (6,777 | ) | $ | (12,082 | ) | $ | (58 | ) | $ | (1 | ) | $ | — | ||||||||||||||||||
Location of Gain/(Loss) | ||||||||||||||||
Derivatives Not Designated | Recognized in Income on | Amount of Gain/(Loss) Recognized in | ||||||||||||||
as Hedging Instruments | Derivative | Income on Derivative | ||||||||||||||
2011 | 2010 | 2009 | ||||||||||||||
Interest Rate Products | Other (expense)/income | $ | (23 | ) | $ | (991 | ) | $ | 593 | |||||||
Total | $ | (23 | ) | $ | (991 | ) | $ | 593 | ||||||||
112
Table of Contents
Expected Costs | ||||||||||||||||
Number of | Costs Incurred | to Complete | Ownership | |||||||||||||
Properties | to Date | (unaudited) | Stake | |||||||||||||
Wholly owned — under development | 7 | $ | 248,746 | $ | 425,529 | 100 | % | |||||||||
Joint ventures: | ||||||||||||||||
Consolidated Joint Ventures | 1 | 13,072 | 32,928 | 90 | % | |||||||||||
Unconsolidated Joint Ventures | 3 | 37,913 | 142,987 | 95 | % | |||||||||||
$ | 299,731 | $ | 601,444 | |||||||||||||
Ground | Office | |||||||
Leases (a) | Space | |||||||
2012 | $ | 5,043 | $ | 458 | ||||
2013 | 5,043 | 478 | ||||||
2014 | 5,043 | 498 | ||||||
2015 | 5,043 | 499 | ||||||
2016 | 5,043 | 40 | ||||||
Thereafter | 314,914 | — | ||||||
$ | 340,129 | $ | 1,973 | |||||
(a) | For purposes of our ground lease contracts, the Company uses the minimum lease payment, if stated in the agreement. For ground lease agreements where there is a reset provision based on the communities appraised value or consumer price index but does not include a specified minimum lease payment, the Company uses the current rent over the remainder of the lease term. |
113
Table of Contents
• | Same store communitiesrepresent those communities acquired, developed, and stabilized prior to January 1, 2010, and held as of December 31, 2011. 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 year, there is no plan to conduct substantial redevelopment activities, and the community is not held for sale 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/other communitiesrepresent those communities that were acquired or developed in 2009, 2010 or 2011, sold properties, redevelopment properties, properties classified as real estate held for sale, condominium conversion properties, joint venture properties, properties managed by third parties, and the non-apartment components of mixed use properties. |
114
Table of Contents
For the Years Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Reportable apartment home segment rental income | ||||||||||||
Same Communities | ||||||||||||
Western Region | $ | 185,759 | $ | 177,771 | $ | 182,120 | ||||||
Mid-Atlantic Region | 153,913 | 147,643 | 144,401 | |||||||||
Southeastern Region | 126,604 | 122,412 | 121,659 | |||||||||
Southwestern Region | 49,223 | 47,202 | 46,674 | |||||||||
Non-Mature communities/Other | 215,459 | 138,840 | 108,045 | |||||||||
Total segment and consolidated rental income | $ | 730,958 | $ | 633,868 | $ | 602,899 | ||||||
Reportable apartment home segment NOI | ||||||||||||
Same Communities | ||||||||||||
Western Region | $ | 129,292 | $ | 121,338 | $ | 127,653 | ||||||
Mid-Atlantic Region | 106,393 | 100,875 | 98,483 | |||||||||
Southeastern Region | 79,369 | 76,560 | 74,853 | |||||||||
Southwestern Region | 29,395 | 27,527 | 26,058 | |||||||||
Non-Mature communities/Other | 140,311 | 84,764 | 71,413 | |||||||||
Total segment and consolidated NOI | 484,760 | 411,064 | 398,460 | |||||||||
Reconciling items: | ||||||||||||
Non-property income | 17,422 | 14,347 | 14,274 | |||||||||
Property management | (20,101 | ) | (17,432 | ) | (16,581 | ) | ||||||
Other operating expenses | (6,217 | ) | (5,848 | ) | (6,485 | ) | ||||||
Depreciation and amortization | (370,343 | ) | (303,446 | ) | (278,391 | ) | ||||||
Interest, net | (158,333 | ) | (150,796 | ) | (142,152 | ) | ||||||
General and administrative | (45,915 | ) | (45,243 | ) | (39,035 | ) | ||||||
Severance costs and other restructuring charges | (1,342 | ) | (6,803 | ) | — | |||||||
Other depreciation and amortization | (3,931 | ) | (4,843 | ) | (5,161 | ) | ||||||
Loss from unconsolidated entities | (6,352 | ) | (4,204 | ) | (18,665 | ) | ||||||
Redeemable noncontrolling interests in OP | (395 | ) | 3,835 | 4,282 | ||||||||
Non-controlling interests | (167 | ) | (146 | ) | (191 | ) | ||||||
Tax (expense)/ benefit | (7,571 | ) | 2,533 | (311 | ) | |||||||
Gain on the sale of depreciable property | 138,508 | 4,083 | 2,424 | |||||||||
Net income/(loss) attributable to UDR, Inc. | $ | 20,023 | $ | (102,899 | ) | $ | (87,532 | ) | ||||
115
Table of Contents
December 31, | ||||||||
2011 | 2010 | |||||||
Reportable apartment home segment assets | ||||||||
Same Communities | ||||||||
Western Region | $ | 1,958,108 | $ | 1,920,742 | ||||
Mid-Atlantic Region | 1,257,778 | 1,245,737 | ||||||
Southeastern Region | 1,041,658 | 1,003,830 | ||||||
Southwestern Region | 476,812 | 461,015 | ||||||
Non-Mature communities/Other | 3,340,115 | 2,250,023 | ||||||
Total segment assets | 8,074,471 | 6,881,347 | ||||||
Accumulated depreciation | (1,831,727 | ) | (1,638,326 | ) | ||||
Total segment assets — net book value | 6,242,744 | 5,243,021 | ||||||
Reconciling items: | ||||||||
Cash and cash equivalents | 12,503 | 9,486 | ||||||
Marketable securities | — | 3,866 | ||||||
Restricted cash | 24,634 | 15,447 | ||||||
Deferred financing costs, net | 30,068 | 27,267 | ||||||
Notes receivable | — | 7,800 | ||||||
Investment in unconsolidated joint ventures | 213,040 | 148,057 | ||||||
Other assets | 198,365 | 74,596 | ||||||
Total consolidated assets | $ | 6,721,354 | $ | 5,529,540 | ||||
i. | Western — Orange County, San Francisco, Seattle, Monterey Peninsula, Los Angeles, San Diego, Inland Empire, Sacramento, and Portland | ||
ii. | Mid-Atlantic — Metropolitan DC, Richmond, Baltimore, Norfolk, and Other Mid-Atlantic | ||
iii. | Southeastern — Tampa, Orlando, Nashville, Jacksonville, and Other Florida | ||
iv. | Southwestern — Dallas, Phoenix, and Austin |
116
Table of Contents
Three months ended | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
2011 | ||||||||||||||||
Rental income (a) | $ | 154,558 | $ | 167,555 | $ | 181,151 | $ | 187,999 | ||||||||
Loss from continuing operations | (30,746 | ) | (31,322 | ) | (26,763 | ) | (22,805 | ) | ||||||||
Income from discontinued operations | 2,090 | 46,231 | 12,977 | 70,923 | ||||||||||||
Net (loss)/income attributable to common stockholders | (30,243 | ) | 12,149 | (15,559 | ) | 44,190 | ||||||||||
(Loss)/income per share (b): | ||||||||||||||||
Basic and diluted | $ | (0.17 | ) | $ | 0.06 | $ | (0.07 | ) | $ | 0.20 | ||||||
2010 | ||||||||||||||||
Rental income (a) | $ | 137,139 | $ | 139,377 | $ | 145,172 | $ | 152,396 | ||||||||
Loss from continuing operations | (28,412 | ) | (28,745 | ) | (28,605 | ) | (30,042 | ) | ||||||||
Income from discontinued operations | 3,386 | 1,105 | 4,000 | 725 | ||||||||||||
Net loss attributable to common stockholders | (26,435 | ) | (28,968 | ) | (26,134 | ) | (30,825 | ) | ||||||||
Loss per share (b): | ||||||||||||||||
Basic and diluted | $ | (0.17 | ) | $ | (0.18 | ) | $ | (0.16 | ) | $ | (0.17 | ) |
(a) | Represents rental income from continuing operations, excluding amounts classified as discontinued operations. | |
(b) | Quarterly earnings per common share amounts may not total to the annual amounts due to rounding. |
117
Table of Contents
118
Table of Contents
United Dominion Realty, L.P.
February 27, 2012
119
Table of Contents
December 31, | ||||||||
2011 | 2010 | |||||||
ASSETS | ||||||||
Real estate owned: | ||||||||
Real estate held for investment | $ | 4,205,298 | $ | 3,384,987 | ||||
Less: accumulated depreciation | (976,358 | ) | (802,344 | ) | ||||
Real estate held for investment, net | 3,228,940 | 2,582,643 | ||||||
Held for sale (net of accumulated depreciation of $0 and $81,739) | — | 239,458 | ||||||
Total real estate owned, net of accumulated depreciation | 3,228,940 | 2,822,101 | ||||||
Cash and cash equivalents | 704 | 920 | ||||||
Restricted cash | 12,568 | 8,022 | ||||||
Deferred financing costs, net | 8,184 | 7,465 | ||||||
Other assets | 41,771 | 22,887 | ||||||
Total assets | $ | 3,292,167 | $ | 2,861,395 | ||||
LIABILITIES AND CAPITAL | ||||||||
Secured debt | $ | 1,189,645 | $ | 1,014,459 | ||||
Secured debt — real estate held for sale | — | 55,602 | ||||||
Notes payable due to General Partner | 88,771 | 78,271 | ||||||
Real estate taxes payable | 5,280 | 5,245 | ||||||
Accrued interest payable | 1,886 | 518 | ||||||
Security deposits and prepaid rent | 16,498 | 13,158 | ||||||
Distributions payable | 39,840 | 33,559 | ||||||
Deferred gains on the sale of depreciable property | 63,838 | 63,838 | ||||||
Accounts payable, accrued expenses, and other liabilities | 33,040 | 35,122 | ||||||
Total liabilities | 1,438,798 | 1,299,772 | ||||||
Capital: | ||||||||
Partners’ capital: | ||||||||
Operating partnership units: 184,281,253 OP units outstanding at December 31, 2011 and 179,909,408 at December 31, 2010 | ||||||||
General partner: 110,883 OP units outstanding at December 31, 2011 and December 31, 2010 | 1,293 | 1,363 | ||||||
Limited partners: 184,170,370 OP units outstanding at December 31, 2011 and 179,798,525 OP units outstanding at December 31, 2010 | 2,040,401 | 2,046,380 | ||||||
Accumulated other comprehensive loss | (6,902 | ) | (5,502 | ) | ||||
Total partners’ capital | 2,034,792 | 2,042,241 | ||||||
Receivable due from General Partner | (193,584 | ) | (492,709 | ) | ||||
Non-controlling interest | 12,161 | 12,091 | ||||||
Total capital | 1,853,369 | 1,561,623 | ||||||
Total liabilities and capital | $ | 3,292,167 | $ | 2,861,395 | ||||
120
Table of Contents
Years Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
REVENUES | ||||||||||||
Rental income | $ | 367,245 | $ | 319,089 | $ | 322,456 | ||||||
Non-property income: | ||||||||||||
Other income | — | — | 5,695 | |||||||||
Total revenues | 367,245 | 319,089 | 328,151 | |||||||||
EXPENSES | ||||||||||||
Rental expenses: | ||||||||||||
Real estate taxes and insurance | 41,233 | 39,389 | 39,436 | |||||||||
Personnel | 28,240 | 26,239 | 25,288 | |||||||||
Utilities | 19,540 | 16,676 | 16,034 | |||||||||
Repair and maintenance | 18,220 | 16,762 | 15,908 | |||||||||
Administrative and marketing | 7,521 | 6,737 | 6,906 | |||||||||
Property management | 10,099 | 8,775 | 8,868 | |||||||||
Other operating expenses | 5,317 | 4,949 | 4,868 | |||||||||
Real estate depreciation and amortization | 191,926 | 152,789 | 152,807 | |||||||||
Interest expense: | ||||||||||||
Interest on secured debt | 51,827 | 48,716 | 43,282 | |||||||||
Interest on note payable due to General Partner | 990 | 424 | 5,028 | |||||||||
General and administrative | 26,370 | 23,291 | 16,886 | |||||||||
Total expenses | 401,283 | 344,747 | 335,311 | |||||||||
Loss from continuing operations | (34,038 | ) | (25,658 | ) | (7,160 | ) | ||||||
Income from discontinued operations | 64,267 | 4,964 | 3,115 | |||||||||
Consolidated net income/(loss) | 30,229 | (20,694 | ) | (4,045 | ) | |||||||
Net income attributable to non-controlling interests | (70 | ) | (41 | ) | (131 | ) | ||||||
Net income/(loss) attributable to OP unitholders | $ | 30,159 | $ | (20,735 | ) | $ | (4,176 | ) | ||||
Earnings per OP unit- basic and diluted: | ||||||||||||
Loss from continuing operations attributable to OP unitholders | $ | (0.19 | ) | $ | (0.14 | ) | $ | (0.04 | ) | |||
Income from discontinued operations | $ | 0.35 | $ | 0.03 | $ | 0.02 | ||||||
Income/(loss) attributable to OP unitholders | $ | 0.17 | $ | (0.12 | ) | $ | (0.02 | ) | ||||
Weighted average OP units outstanding | 182,448 | 179,909 | 178,817 |
121
Table of Contents
Year ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Operating Activities | ||||||||||||
Consolidated net income/(loss) | $ | 30,229 | $ | (20,694 | ) | $ | (4,045 | ) | ||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 197,964 | 166,480 | 166,773 | |||||||||
Net gain on the sale of depreciable property | (60,065 | ) | (152 | ) | (1,475 | ) | ||||||
Write off of bad debt | 2,040 | 1,760 | 2,216 | |||||||||
Amortization of deferred financing costs and other | 2,425 | 1,652 | 2,195 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Increase in operating assets | (11,516 | ) | (3,705 | ) | (3,340 | ) | ||||||
(Decrease)/increase in operating liabilities | (5,006 | ) | 1,263 | (4,991 | ) | |||||||
Net cash provided by operating activities | 156,071 | 146,604 | 157,333 | |||||||||
Investing Activities | ||||||||||||
Proceeds from sale of real estate investments, net | 138,693 | — | — | |||||||||
Acquisition of real estate assets (net of liabilities assumed) and initial capital expenditures | (287,075 | ) | — | — | ||||||||
Cash paid in nonmonetary asset exchange | (15,407 | ) | — | — | ||||||||
Proceeds from note receivable | — | — | 200,000 | |||||||||
Capital expenditures and other major improvements — real estate assets, net of escrow reimbursement | (63,191 | ) | (59,458 | ) | (70,372 | ) | ||||||
Net cash (used in)/provided by investing activities | (226,980 | ) | (59,458 | ) | 129,628 | |||||||
Financing Activities | ||||||||||||
Advances from/(payments to) General Partner | 175,964 | (31,359 | ) | (550,392 | ) | |||||||
Proceeds from the issuance of secured debt | 2,074 | 11,326 | 340,608 | |||||||||
Payments on secured debt | (96,902 | ) | (60,686 | ) | (64,455 | ) | ||||||
Payment of financing costs | (3,143 | ) | (391 | ) | (4,073 | ) | ||||||
OP unit redemption | — | (327 | ) | — | ||||||||
Distributions paid to partnership unitholders | (7,300 | ) | (5,231 | ) | (11,797 | ) | ||||||
Net cash provided by/(used in) financing activities | 70,693 | (86,668 | ) | (290,109 | ) | |||||||
Net increase in cash and cash equivalents | (216 | ) | 478 | (3,148 | ) | |||||||
Cash and cash equivalents, beginning of year | 920 | 442 | 3,590 | |||||||||
Cash and cash equivalents, end of year | $ | 704 | $ | 920 | $ | 442 | ||||||
Supplemental Information: | ||||||||||||
Interest paid during the year, net of amounts capitalized | $ | 58,623 | $ | 51,584 | $ | 46,029 | ||||||
Non-cash transactions: | ||||||||||||
Properties acquired, including intangibles in asset exchange | 178,353 | — | — | |||||||||
Properties disposed in asset exchange, net of accumulated depreciation | 139,725 | — | — | |||||||||
OP Units issued in partial consideration for property acquisition | 111,034 | — | — | |||||||||
Secured debt assumed in the acquisitions of properties, including asset exchange | 247,805 | — | — | |||||||||
Secured debt transferred in asset exchange | 55,356 | — | — | |||||||||
Fair market value adjustment of secured debt assumed in acquisitions of properties, including asset exchange | 21,915 | — | — |
122
Table of Contents
Out- | Accumulated | ||||||||||||||||||||||||||||||||||||||||
Class A | UDR, Inc. | Performance | Other | Total | Receivable due | Non- | |||||||||||||||||||||||||||||||||||
Limited | Limited | Limited | General | Partnership | Comprehensive | Partnership | from General | Controlling | |||||||||||||||||||||||||||||||||
Partner | Partners | Partner | Partner | Shares | Income/(Loss) | Capital | Partner | Interest | Total | ||||||||||||||||||||||||||||||||
Balance, December 31, 2008 | $ | 22,310 | $ | 78,685 | $ | 2,246,794 | $ | 1,452 | $ | 1,458 | $ | (4,874 | ) | $ | 2,345,825 | $ | (375,124 | ) | $ | 12,049 | $ | 1,982,750 | |||||||||||||||||||
Distributions | (2,328 | ) | (3,600 | ) | (146,954 | ) | (94 | ) | — | — | (152,976 | ) | — | — | (152,976 | ) | |||||||||||||||||||||||||
Issuance of OP Units through Special Dividend | 1,568 | 5,691 | — | 100 | — | 7,359 | 153,611 | 160,970 | |||||||||||||||||||||||||||||||||
Forfeitures- OPPS units | 14 | 34 | 1,409 | 1 | (1,458 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||
OP Unit Redemptions for common shares of UDR | — | (23,308 | ) | 23,308 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Adjustment to reflect limited partners’ capital at redemption value | 7,274 | 12,218 | (19,492 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivative financial instruments | — | — | — | — | — | 1,721 | 1,721 | — | — | 1,721 | |||||||||||||||||||||||||||||||
Net loss | (41 | ) | (98 | ) | (4,034 | ) | (3 | ) | — | — | (4,176 | ) | — | 131 | (4,045 | ) | |||||||||||||||||||||||||
Total comprehensive income/(loss) | — | — | — | — | — | 1,721 | — | — | — | (2,324 | ) | ||||||||||||||||||||||||||||||
Net change in receivable due from General Partner | — | — | — | — | — | — | — | (366,672 | ) | (366,672 | ) | ||||||||||||||||||||||||||||||
Balance, December 31, 2009 | 28,797 | 69,622 | 2,101,031 | 1,456 | — | (3,153 | ) | 2,197,753 | (588,185 | ) | 12,180 | 1,621,748 | |||||||||||||||||||||||||||||
Distributions | (2,328 | ) | (2,819 | ) | (127,201 | ) | (80 | ) | — | — | (132,428 | ) | — | — | (132,428 | ) | |||||||||||||||||||||||||
OP Unit Redemptions for common shares of UDR | — | (18,214 | ) | 18,214 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
OP Unit Redemptions for cash | — | (327 | ) | 327 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Adjustment to reflect limited partners’ capital at redemption value | 14,932 | 30,019 | (44,951 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Change in UDR, L.P. non-controlling interest | — | — | — | — | — | — | — | — | (130 | ) | (130 | ) | |||||||||||||||||||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||||||||||||||||||||||||||
Unrealized loss on derivative financial instruments | — | — | — | — | — | (2,349 | ) | (2,349 | ) | — | — | (2,349 | ) | ||||||||||||||||||||||||||||
Net loss | (202 | ) | (423 | ) | (20,097 | ) | (13 | ) | — | — | (20,735 | ) | — | 41 | (20,694 | ) | |||||||||||||||||||||||||
Total comprehensive loss | — | — | — | — | — | (2,349 | ) | — | — | — | (23,043 | ) | |||||||||||||||||||||||||||||
Net change in receivable due from General Partner | — | — | — | — | — | — | — | 95,476 | — | 95,476 | |||||||||||||||||||||||||||||||
Balance, December 31, 2010 | 41,199 | 77,858 | 1,927,323 | 1,363 | — | (5,502 | ) | 2,042,241 | (492,709 | ) | 12,091 | 1,561,623 | |||||||||||||||||||||||||||||
Distributions | (2,328 | ) | (4,973 | ) | (139,853 | ) | (88 | ) | — | — | (147,242 | ) | — | — | (147,242 | ) | |||||||||||||||||||||||||
OP Unit Redemptions for common shares of UDR | — | (287 | ) | 287 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
OP Units issued for acquisitions of real estate | — | 111,034 | — | — | — | — | 111,034 | — | — | 111,034 | |||||||||||||||||||||||||||||||
Adjustment to reflect limited partners’ capital at redemption value | 4,809 | 7,621 | (12,430 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Change in UDR, L.P. non-controlling interest | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||||||||||||||||||||||||||
Unrealized loss on derivative financial instruments | — | — | — | — | — | (1,400 | ) | (1,400 | ) | — | — | (1,400 | ) | ||||||||||||||||||||||||||||
Net income | 287 | 1,255 | 28,599 | 18 | — | — | 30,159 | — | 70 | 30,229 | |||||||||||||||||||||||||||||||
Total comprehensive (loss)/income | — | — | — | — | — | (1,400 | ) | — | — | — | 28,829 | ||||||||||||||||||||||||||||||
Net change in receivable due from General Partner | — | — | — | — | — | — | — | 299,125 | — | 299,125 | |||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 43,967 | $ | 192,508 | $ | 1,803,926 | $ | 1,293 | $ | — | $ | (6,902 | ) | $ | 2,034,792 | $ | (193,584 | ) | $ | 12,161 | $ | 1,853,369 | |||||||||||||||||||
123
Table of Contents
124
Table of Contents
125
Table of Contents
126
Table of Contents
127
Table of Contents
128
Table of Contents
December 31, | ||||||||
2011 | 2010 | |||||||
Land | $ | 1,021,526 | $ | 882,538 | ||||
Depreciable property — held and used: | ||||||||
Buildings and improvements | 3,035,252 | 2,367,044 | ||||||
Furniture, fixtures and equipment | 120,427 | 109,390 | ||||||
Held for sale: | ||||||||
Land | — | 107,386 | ||||||
Buildings and improvements | — | 206,877 | ||||||
Furniture, fixtures and equipment | — | 6,934 | ||||||
Under development: | ||||||||
Land | 16,385 | — | ||||||
Construction in progress | 10,408 | — | ||||||
Land held for future development | 1,300 | 26,015 | ||||||
Real estate owned | 4,205,298 | 3,706,184 | ||||||
Accumulated depreciation | (976,358 | ) | (884,083 | ) | ||||
Real estate owned, net | $ | 3,228,940 | $ | 2,822,101 | ||||
129
Table of Contents
Purchase | ||||||||||||
Property Name | Market | Acquisition Date | Units | Price (a) | ||||||||
10 Hanover Square | New York, NY | April 2011 | 493 | $ | 259,750 | |||||||
14 North | Boston, MA | April 2011 | 387 | 64,500 | ||||||||
Inwood West | Boston, MA | April 2011 | 446 | 108,000 | ||||||||
95 Wall | New York, NY | August 2011 | 507 | 328,914 | ||||||||
1,833 | $ | 761,164 | ||||||||||
(a) | The purchase price is the contractual sales price by the Operating Partnership and the third party and does not include any costs that the Operating Partnership incurred in the pursuit of the property or the recorded difference between the agreed upon value and the fair value of the OP Units issued as part of the consideration paid. |
130
Table of Contents
December 31, | ||||||||
2011 | 2010 | |||||||
Pro forma revenues | $ | 389,303 | $ | 386,481 | ||||
Pro forma income/(loss) attributable to OP unitholders | 20,760 | (31,426 | ) | |||||
Pro forma earnings per OP unit — basic: | ||||||||
Net income/(loss) attributable to OP unitholders | $ | 0.11 | $ | (0.17 | ) | |||
Earnings per common share — diluted: | ||||||||
Net income/(loss) attributable to OP unitholders | $ | 0.11 | $ | (0.17 | ) |
131
Table of Contents
For the Years Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Rental income | $ | 19,812 | $ | 31,305 | $ | 30,600 | ||||||
Non-property income | — | 1,695 | — | |||||||||
19,812 | 33,000 | 30,600 | ||||||||||
Rental expenses | 8,045 | 10,475 | 8,916 | |||||||||
Property management fee | 545 | 861 | 841 | |||||||||
Real estate depreciation | 6,038 | 13,691 | 13,966 | |||||||||
Interest | 815 | 3,082 | 5,237 | |||||||||
Other expenses | 167 | 79 | — | |||||||||
15,610 | 28,188 | 28,960 | ||||||||||
Income before net gain on the sale of property | 4,202 | 4,812 | 1,640 | |||||||||
Net gain on the sale of property | 60,065 | 152 | 1,475 | |||||||||
Income from discontinued operations | $ | 64,267 | $ | 4,964 | $ | 3,115 | ||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||
Principal Outstanding | Weighted | Weighted | Number of | |||||||||||||||||
December 31, | Average | Average | Communities | |||||||||||||||||
2011 | 2010 | Interest Rate | Years to Maturity | Encumbered | ||||||||||||||||
Fixed Rate Debt | ||||||||||||||||||||
Mortgage notes payable | $ | 457,723 | $ | 192,205 | 5.28 | % | 4.0 | 7 | ||||||||||||
Tax-exempt secured notes payable | — | 13,325 | N/A | — | — | |||||||||||||||
Fannie Mae credit facilities | 444,899 | 560,993 | 4.95 | % | 6.0 | 7 | ||||||||||||||
Total fixed rate secured debt | 902,622 | 766,523 | 5.12 | % | 5.0 | 14 | ||||||||||||||
Variable Rate Debt | ||||||||||||||||||||
Mortgage notes payable | 37,415 | 100,590 | 0.99 | % | 1.5 | 2 | ||||||||||||||
Tax-exempt secured note payable | 27,000 | 27,000 | 0.57 | % | 18.2 | 1 | ||||||||||||||
Fannie Mae credit facilities | 222,608 | 175,948 | 1.84 | % | 4.3 | 20 | ||||||||||||||
Total variable rate secured debt | 287,023 | 303,538 | 1.61 | % | 5.3 | 23 | ||||||||||||||
Total secured debt | $ | 1,189,645 | $ | 1,070,061 | 4.27 | % | 5.1 | 37 | ||||||||||||
132
Table of Contents
December 31, | ||||||||
2011 | 2010 | |||||||
(dollar amounts in thousands) | ||||||||
Borrowings outstanding | $ | 667,507 | $ | 736,941 | ||||
Weighted average borrowings during the period ended | 721,054 | 763,040 | ||||||
Maximum daily borrowings during the period | 732,423 | 770,021 | ||||||
Weighted average interest rate during the period ended | 4.4 | % | 4.5 | % | ||||
Interest rate at the end of the period | 4.1 | % | 4.4 | % |
133
Table of Contents
Fixed | Variable | |||||||||||||||||||||||
Mortgage | Credit | Mortgage | Tax Exempt | Credit | ||||||||||||||||||||
Notes | Facilities | Notes | Notes Payable | Facilities | Total | |||||||||||||||||||
2012 | $ | 54,484 | $ | 62,992 | $ | — | $ | — | $ | 92,715 | $ | 210,191 | ||||||||||||
2013 | 16,538 | 29,805 | 37,415 | — | — | 83,758 | ||||||||||||||||||
2014 | 8,346 | — | — | — | — | 8,346 | ||||||||||||||||||
2015 | 193,209 | — | — | — | — | 193,209 | ||||||||||||||||||
2016 | 131,904 | — | — | — | — | 131,904 | ||||||||||||||||||
Thereafter | 53,242 | 352,102 | — | 27,000 | 129,893 | 562,237 | ||||||||||||||||||
Total | $ | 457,723 | $ | 444,899 | $ | 37,415 | $ | 27,000 | $ | 222,608 | $ | 1,189,645 | ||||||||||||
134
Table of Contents
• | 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. |
Fair Value at December 31, 2011 Using | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets | ||||||||||||||||
for Identical | Significant Other | Significant | ||||||||||||||
Assets or | Observable | Unobservable | ||||||||||||||
Liabilities | Inputs | Inputs | ||||||||||||||
December 31, 2011 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Description: | ||||||||||||||||
Derivatives- Interest rate contracts (b) | $ | 71 | $ | — | $ | 71 | $ | — | ||||||||
Total assets | $ | 71 | $ | — | $ | 71 | $ | — | ||||||||
Derivatives- Interest rate contracts (b) | $ | 6,207 | $ | — | $ | 6,207 | $ | — | ||||||||
Secured debt instruments- fixed rate: (a) | ||||||||||||||||
Mortgage notes payable | 495,412 | — | — | 495,412 | ||||||||||||
Fannie Mae credit facilities | 462,621 | — | — | 462,621 | ||||||||||||
Secured debt instruments- variable rate: (a) | ||||||||||||||||
Mortgage notes payable | 37,415 | — | — | 37,415 | ||||||||||||
Tax-exempt secured notes payable | 27,000 | — | — | 27,000 | ||||||||||||
Fannie Mae credit facilities | 222,608 | — | — | 222,608 | ||||||||||||
Total liabilities | $ | 1,251,263 | $ | — | $ | 6,207 | $ | 1,245,056 | ||||||||
135
Table of Contents
Fair Value at December 31, 2010 Using | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets | ||||||||||||||||
for Identical | Significant Other | Significant | ||||||||||||||
Assets or | Observable | Unobservable | ||||||||||||||
Liabilities | Inputs | Inputs | ||||||||||||||
December 31, 2010 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Description: | ||||||||||||||||
Derivatives — Interest rate contracts (b) | $ | 376 | $ | — | $ | 376 | $ | — | ||||||||
Total assets | $ | 376 | $ | — | $ | 376 | $ | — | ||||||||
Derivatives- Interest rate contracts (b) | $ | 5,111 | $ | — | $ | 5,111 | $ | — | ||||||||
Contingent purchase consideration (c) | 5,402 | — | — | 5,402 | ||||||||||||
Secured debt instruments- fixed rate: (a) | ||||||||||||||||
Mortgage notes payable | 205,750 | — | — | 205,750 | ||||||||||||
Tax-exempt secured notes payable | 13,885 | — | — | 13,885 | ||||||||||||
Fannie Mae credit facilities | 576,069 | — | — | 576,069 | ||||||||||||
Secured debt instruments- variable rate: (a) | ||||||||||||||||
Mortgage notes payable | 100,590 | — | — | 100,590 | ||||||||||||
Tax-exempt secured notes payable | 27,000 | — | — | 27,000 | ||||||||||||
Fannie Mae credit facilities | 175,948 | — | — | 175,948 | ||||||||||||
Total liabilities | $ | 1,109,755 | $ | — | $ | 5,111 | $ | 1,104,644 | ||||||||
(a) | See Note 5,Debt | |
(b) | See Note 8,Derivatives and Hedging Activity | |
(c) | In the first quarter of 2010, the Operating Partnership accrued a liability of $6.0 million related to a contingent purchase consideration on one of its properties. The contingent consideration was determined based on the fair market value of the related asset which is estimated using Level 3 inputs utilized in a third party appraisal. The Operating Partnership paid approximately $635,000 of the liability during the year ended December 31, 2010. The remaining balance of $5.4 million was paid during the year ended December 31, 2011 in conjunction with the sale of the property. |
136
Table of Contents
137
Table of Contents
Number of | ||||||||
Interest Rate Derivative | Instruments | Notional | ||||||
Interest rate swaps | 4 | $ | 172,813 | |||||
Interest rate caps | 5 | $ | 245,954 |
Number of | ||||||||
Product | Instruments | Notional | ||||||
Interest rate caps | 1 | $ | 79,847 |
138
Table of Contents
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Fair Value at | Fair Value at | |||||||||||||||||||
Balance | December 31, | Balance | December 31, | |||||||||||||||||
Sheet Location | 2011 | 2010 | Sheet Location | 2011 | 2010 | |||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest Rate Products | Other Assets | $ | 64 | $ | 217 | Other Liabilities | $ | 6,207 | $ | 5,111 | ||||||||||
Total derivatives designated as hedging instruments | $ | 64 | $ | 217 | $ | 6,207 | $ | 5,111 | ||||||||||||
Derivativesnotdesignated as hedging instruments: | ||||||||||||||||||||
Interest Rate Products | Other Assets | $ | 7 | $ | 159 | Other Liabilities | $ | — | $ | — | ||||||||||
Total derivativesnotdesignated as hedging instruments | $ | 7 | $ | 159 | $ | — | $ | — | ||||||||||||
Location of Loss | Amount of Loss Reclassified from | |||||||||||||||||||||||||||
Amount of Loss Recognized in OCI on | Reclassified from | Accumulated OCI into Income | ||||||||||||||||||||||||||
Derivatives in | Derivative (Effective Portion) | Accumulated OCI | (Effective Portion) | |||||||||||||||||||||||||
Cash Flow | For the Years Ended December 31, | into Income | For the Years Ended December 31, | |||||||||||||||||||||||||
Hedging Relationships | 2011 | 2010 | 2009 | (Effective Portion) | 2011 | 2010 | 2009 | |||||||||||||||||||||
Interest Rate Products | $ | (6,119 | ) | $ | (6,631 | ) | $ | (2,676 | ) | Interest expense | $ | (4,719 | ) | $ | (4,281 | ) | $ | (4,397 | ) | |||||||||
Total | $ | (6,119 | ) | $ | (4,281 | ) | $ | (2,676 | ) | $ | (4,719 | ) | $ | (6,631 | ) | $ | (4,397 | ) | ||||||||||
Amount of Gain or (Loss) Recognized | ||||||||||||||
Derivatives Not | Location of Gain or (Loss) | in Income on Derivative | ||||||||||||
Designated as | Recognized in Income on | For the Years Ended December 31, | ||||||||||||
Hedging Instruments | Derivative | 2011 | 2010 | 2009 | ||||||||||
Interest Rate Products | Other income / (expense) | $ | (204 | ) | $ | (684 | ) | $ | 538 | |||||
Total | $ | (204 | ) | $ | (684 | ) | $ | 538 | ||||||
139
Table of Contents
140
Table of Contents
141
Table of Contents
i. | determining the amount by which the cumulative total return of UDR’s common stock over the measurement period exceeds the Minimum Return (such excess being the “Excess Return”); |
ii. | multiplying 2% of the Excess Return by UDR’s market capitalization (defined as the average number of shares outstanding over the 36-month period, including common stock, OP Units, common stock equivalents and OP Units); and |
iii. | dividing the number obtained in (ii) by the market value of one share of UDR’s common stock on the valuation date, computed as the volume-weighted average price per day of the common stock for the 20 trading days immediately preceding the valuation date. |
UDR, Inc. | ||||||||||||||||||||
Class A Limited | Limited | Limited | General | |||||||||||||||||
Partner | Partners | Partner | Partner | Total | ||||||||||||||||
Ending balance at December 31, 2008 | 1,617,815 | 5,705,964 | 158,736,998 | 102,410 | 166,163,187 | |||||||||||||||
Issuance of units through Special Dividend | 133,856 | 485,986 | 13,117,906 | 8,473 | 13,746,221 | |||||||||||||||
OP redemptions for UDR stock | — | (1,957,029 | ) | 1,957,029 | — | — | ||||||||||||||
Ending balance at December 31, 2009 | 1,751,671 | 4,234,921 | 173,811,933 | 110,883 | 179,909,408 | |||||||||||||||
OP redemptions for UDR cash | — | (19,076 | ) | 19,076 | — | — | ||||||||||||||
OP redemptions for UDR stock | — | (905,548 | ) | 905,548 | — | — | ||||||||||||||
Ending balance at December 31, 2010 | 1,751,671 | 3,310,297 | 174,736,557 | 110,883 | 179,909,408 | |||||||||||||||
OP Units issued for acquisitions of real estate | — | 4,371,845 | — | — | 4,371,845 | |||||||||||||||
OP redemptions for UDR stock | — | (12,511 | ) | 12,511 | — | — | ||||||||||||||
Ending balance at December 31, 2011 | 1,751,671 | 7,669,631 | 174,749,068 | 110,883 | 184,281,253 | |||||||||||||||
142
Table of Contents
143
Table of Contents
• | Same communitiesrepresent those communities acquired, developed, and stabilized prior to January 1, 2010 and held as of December 31, 2011. 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 year, there is no plan to conduct substantial redevelopment activities, and the community is not held for sale 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/other communitiesrepresent those communities that were acquired or developed in 2009, 2010, or 2011 sold properties, redevelopment properties, properties classified as real estate held for sale, condominium conversion properties, joint venture properties, properties managed by third parties, and the non-apartment components of mixed use properties. |
144
Table of Contents
December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Reportable apartment home segment rental income | ||||||||||||
Same Store Communities | ||||||||||||
Western Region | $ | 158,280 | $ | 151,244 | $ | 155,745 | ||||||
Mid-Atlantic Region | 64,020 | 61,262 | 58,774 | |||||||||
Southeastern Region | 42,631 | 40,846 | 41,210 | |||||||||
Southwestern Region | 27,559 | 26,428 | 26,669 | |||||||||
Non-Mature communities/Other | 94,567 | 70,614 | 70,658 | |||||||||
Total segment and consolidated rental income | $ | 387,057 | $ | 350,394 | $ | 353,056 | ||||||
Reportable apartment home segment NOI | ||||||||||||
Same Store Communities | ||||||||||||
Western Region | $ | 110,631 | $ | 103,600 | $ | 109,713 | ||||||
Mid-Atlantic Region | 44,400 | 41,908 | 39,556 | |||||||||
Southeastern Region | 26,722 | 25,659 | 25,984 | |||||||||
Southwestern Region | 17,127 | 16,175 | 16,271 | |||||||||
Non-Mature communities/Other | 65,378 | 46,774 | 49,044 | |||||||||
Total segment and consolidated NOI | 264,258 | 234,116 | 240,568 | |||||||||
Reconciling items: | ||||||||||||
Non-property income | — | 1,695 | 5,695 | |||||||||
Property management | (10,644 | ) | (9,636 | ) | (9,709 | ) | ||||||
Other operating expenses | (5,484 | ) | (5,028 | ) | (4,868 | ) | ||||||
Depreciation and amortization | (197,964 | ) | (166,480 | ) | (166,773 | ) | ||||||
Interest | (53,632 | ) | (52,222 | ) | (53,547 | ) | ||||||
General and administrative | (26,370 | ) | (23,291 | ) | (16,886 | ) | ||||||
Net gain on the sale of real estate | 60,065 | 152 | 1,475 | |||||||||
Non-controlling interests | (70 | ) | (41 | ) | (131 | ) | ||||||
Net income/(loss) attributable to OP unit holders | $ | 30,159 | $ | (20,735 | ) | $ | (4,176 | ) | ||||
145
Table of Contents
December 31, | ||||||||
2011 | 2010 | |||||||
Reportable apartment home segment assets | ||||||||
Same Store Communities | ||||||||
Western Region | $ | 1,608,006 | $ | 1,591,585 | ||||
Mid-Atlantic Region | 697,217 | 693,564 | ||||||
Southeastern Region | 360,045 | 354,861 | ||||||
Southwestern Region | 257,077 | 254,485 | ||||||
Non-Mature communities/Other | 1,282,953 | 811,689 | ||||||
Total segment assets | 4,205,298 | 3,706,184 | ||||||
Accumulated depreciation | (976,358 | ) | (884,083 | ) | ||||
Total segment assets - net book value | 3,228,940 | 2,822,101 | ||||||
Reconciling items: | ||||||||
Cash and cash equivalents | 704 | 920 | ||||||
Restricted cash | 12,568 | 8,022 | ||||||
Deferred financing costs, net | 8,184 | 7,465 | ||||||
Other assets | 41,771 | 22,887 | ||||||
Total consolidated assets | $ | 3,292,167 | $ | 2,861,395 | ||||
i. | Western — Orange County, San Francisco, Monterey Peninsula, Los Angeles, Seattle, Sacramento, Inland Empire, Portland, and San Diego | ||
ii. | Mid-Atlantic —Metropolitan DC and Baltimore | ||
iii. | Southeastern — Nashville, Tampa, Jacksonville, and Other Florida | ||
iv. | Southwestern — Dallas and Phoenix |
146
Table of Contents
Three months ended | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
2011 | ||||||||||||||||
Rental income (a) | $ | 81,396 | $ | 91,675 | $ | 95,523 | $ | 98,651 | ||||||||
Loss from continuing operations | (3,344 | ) | (9,449 | ) | (7,664 | ) | (13,581 | ) | ||||||||
Income from discontinued operations | 1,340 | 16,957 | 1,064 | 44,906 | ||||||||||||
(Loss)/income attributable to OP unitholders | (2,031 | ) | 7,476 | (6,632 | ) | 31,346 | ||||||||||
(Loss)/income per OP unit- basic and diluted (b) | $ | (0.01 | ) | $ | 0.04 | $ | (0.04 | ) | $ | 0.17 | ||||||
2010 | ||||||||||||||||
Rental income (a) | $ | 82,812 | $ | 83,684 | $ | 84,431 | $ | 68,162 | ||||||||
Income/(loss) from continuing operations | 1,729 | (1,679 | ) | (6,341 | ) | (19,367 | ) | |||||||||
(Loss)/income from discontinued operations | (4,662 | ) | (873 | ) | (495 | ) | 10,994 | |||||||||
Loss attributable to OP unitholders | (2,950 | ) | (2,570 | ) | (6,845 | ) | (8,370 | ) | ||||||||
Loss per OP unit — basic and diluted | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.05 | ) |
(a) | Represents rental income from continuing operations, excluding amounts classified as discontinued operations. | |
(b) | Quarterly earnings per OP Unit amounts may not total to the annual amounts due to rounding. |
147
Table of Contents
148
Table of Contents
Cost of | Gross Amount at Which | |||||||||||||||||||||||||||||||||||||||
Initial Costs | Total | Improvements | Carried at Close of Period | |||||||||||||||||||||||||||||||||||||
Land and | Buildings | Initial | Capitalized | Land and | Buildings & | Total | ||||||||||||||||||||||||||||||||||
Land | and | Acquisition | Subsequent | Land | Buildings | Carrying | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||
Encumbrances | Improvements | Improvements | Costs | to Acquisition Costs | Improvements | Improvements | Value | Depreciation | Construction(a) | Acquired | ||||||||||||||||||||||||||||||
WESTERN REGION | ||||||||||||||||||||||||||||||||||||||||
Harbor at Mesa Verde | $ | 47,091 | $ | 20,477 | $ | 28,538 | $ | 49,015 | $ | 11,271 | $ | 20,774 | $ | 39,512 | $ | 60,286 | $ | 20,518 | 2003 | Jun-03 | ||||||||||||||||||||
Pine Brook Village | 18,270 | 2,582 | 25,504 | 28,086 | 4,638 | 3,886 | 28,838 | 32,724 | 14,045 | 1979 | Jun-03 | |||||||||||||||||||||||||||||
Pacific Shores | 19,145 | 7,345 | 22,624 | 29,969 | 7,777 | 7,596 | 30,150 | 37,746 | 15,105 | 2003 | Jun-03 | |||||||||||||||||||||||||||||
Huntington Vista | 31,274 | 8,055 | 22,486 | 30,541 | 6,102 | 8,243 | 28,400 | 36,643 | 14,479 | 1970 | Jun-03 | |||||||||||||||||||||||||||||
Missions at Back Bay | 11,326 | 229 | 14,129 | 14,358 | 1,871 | 10,739 | 5,490 | 16,229 | 2,972 | 1969 | Dec-03 | |||||||||||||||||||||||||||||
Coronado at Newport — North | 48,448 | 62,516 | 46,082 | 108,598 | 19,536 | 66,591 | 61,543 | 128,134 | 29,146 | 2000 | Oct-04 | |||||||||||||||||||||||||||||
Huntington Villas | 55,752 | 61,535 | 18,017 | 79,552 | 5,014 | 61,855 | 22,711 | 84,566 | 10,965 | 1972 | Sep-04 | |||||||||||||||||||||||||||||
Villa Venetia | — | 70,825 | 24,179 | 95,004 | 5,424 | 70,984 | 29,444 | 100,428 | 13,401 | 1972 | Oct-04 | |||||||||||||||||||||||||||||
Vista Del Rey | 12,659 | 10,670 | 7,080 | 17,750 | 1,670 | 10,783 | 8,637 | 19,420 | 4,112 | 1969 | Sep-04 | |||||||||||||||||||||||||||||
Foxborough | — | 12,071 | 6,187 | 18,258 | 2,285 | 12,180 | 8,363 | 20,543 | 3,558 | 1969 | Sep-04 | |||||||||||||||||||||||||||||
Coronado South | 92,188 | 58,785 | 50,067 | 108,852 | 12,351 | 59,058 | 62,145 | 121,203 | 28,473 | 2000 | Mar-05 | |||||||||||||||||||||||||||||
Pine Brook Village II | — | 25,922 | 60,961 | 86,883 | 1,353 | 25,997 | 62,239 | 88,236 | 13,190 | 1975 | May-08 | |||||||||||||||||||||||||||||
1818 Platinum Triangle | — | 16,663 | 51,905 | 68,568 | 225 | 16,665 | 52,128 | 68,793 | 4,225 | 2009 | Aug-10 | |||||||||||||||||||||||||||||
ORANGE COUNTY, CA | 336,153 | 357,675 | 377,759 | 735,434 | 79,517 | 375,351 | 439,600 | 814,951 | 174,189 | |||||||||||||||||||||||||||||||
2000 Post Street | — | 9,861 | 44,578 | 54,439 | 6,848 | 10,178 | 51,109 | 61,287 | 19,648 | 1987 | Dec-98 | |||||||||||||||||||||||||||||
Birch Creek | — | 4,365 | 16,696 | 21,061 | 5,320 | 5,022 | 21,359 | 26,381 | 10,517 | 1968 | Dec-98 | |||||||||||||||||||||||||||||
Highlands Of Marin | — | 5,996 | 24,868 | 30,864 | 25,554 | 7,011 | 49,407 | 56,418 | 17,294 | 1991 | Dec-98 | |||||||||||||||||||||||||||||
Marina Playa | — | 6,224 | 23,916 | 30,140 | 7,660 | 6,764 | 31,036 | 37,800 | 14,791 | 1971 | Dec-98 | |||||||||||||||||||||||||||||
River Terrace | 33,130 | 22,161 | 40,137 | 62,298 | 2,221 | 22,265 | 42,254 | 64,519 | 15,981 | 2005 | Aug-05 | |||||||||||||||||||||||||||||
CitySouth | — | 14,031 | 30,537 | 44,568 | 30,689 | 15,672 | 59,585 | 75,257 | 13,826 | 1972 | Nov-05 | |||||||||||||||||||||||||||||
Bay Terrace | — | 8,545 | 14,458 | 23,003 | 2,543 | 8,549 | 16,997 | 25,546 | 5,827 | 1962 | Oct-05 | |||||||||||||||||||||||||||||
Highlands of Marin Phase II | — | 5,353 | 18,559 | 23,912 | 10,976 | 5,730 | 29,158 | 34,888 | 6,801 | 1968 | Oct-07 | |||||||||||||||||||||||||||||
Edgewater | 45,106 | 30,657 | 83,872 | 114,529 | 1,760 | 30,668 | 85,621 | 116,289 | 18,845 | 2007 | Mar-08 | |||||||||||||||||||||||||||||
Almaden Lake Village | 27,000 | 594 | 42,515 | 43,109 | 2,459 | 655 | 44,913 | 45,568 | 9,339 | 1999 | Jul-08 | |||||||||||||||||||||||||||||
388 Beale | — | 14,253 | 74,104 | 88,357 | 438 | 14,253 | 74,542 | 88,795 | 3,076 | 1999 | Apr-11 | |||||||||||||||||||||||||||||
2000 Post III | — | 1,756 | 7,753 | 9,509 | 2,983 | 3,290 | 9,202 | 12,492 | 3,773 | 2006 | Dec-98 | |||||||||||||||||||||||||||||
SAN FRANCISCO, CA | 105,236 | 123,796 | 421,993 | 545,789 | 99,451 | 130,057 | 515,183 | 645,240 | 139,718 | |||||||||||||||||||||||||||||||
Rosebeach | — | 8,414 | 17,449 | 25,863 | 1,889 | 8,462 | 19,290 | 27,752 | 8,526 | 1970 | Sep-04 | |||||||||||||||||||||||||||||
Ocean Villas | 8,663 | 5,135 | 12,789 | 17,924 | 1,351 | 5,205 | 14,070 | 19,275 | 5,895 | 1965 | Oct-04 | |||||||||||||||||||||||||||||
Tierra Del Rey | — | 39,586 | 36,679 | 76,265 | 1,811 | 39,592 | 38,484 | 78,076 | 9,369 | 1999 | Dec-07 | |||||||||||||||||||||||||||||
Marina Pointe | 67,700 | 48,182 | 102,364 | 150,546 | 2,188 | 48,225 | 104,509 | 152,734 | 7,661 | 1993 | Sep-10 | |||||||||||||||||||||||||||||
Pine@Sixth | — | 5,805 | 6,305 | 12,110 | 12,387 | 6,241 | 18,256 | 24,497 | 11,565 | 2008 | Aug-06 | |||||||||||||||||||||||||||||
Jefferson at Marina del Rey | 89,850 | 55,651 | — | 55,651 | 87,946 | 61,132 | 82,465 | 143,597 | 14,308 | 2008 | Sep-07 | |||||||||||||||||||||||||||||
LOS ANGELES, CA | 166,213 | 162,773 | 175,586 | 338,359 | 107,572 | 168,857 | 277,074 | 445,931 | 57,324 | |||||||||||||||||||||||||||||||
Arbor Terrace | — | 1,453 | 11,995 | 13,448 | 2,820 | 1,769 | 14,499 | 16,268 | 7,346 | 1996 | Mar-98 | |||||||||||||||||||||||||||||
Aspen Creek | 10,819 | 1,178 | 9,116 | 10,294 | 1,986 | 1,437 | 10,843 | 12,280 | 4,971 | 1996 | Dec-98 | |||||||||||||||||||||||||||||
Crowne Pointe | 7,328 | 2,486 | 6,437 | 8,923 | 4,252 | 2,773 | 10,402 | 13,175 | 5,536 | 1987 | Dec-98 | |||||||||||||||||||||||||||||
Hilltop | 6,774 | 2,174 | 7,408 | 9,582 | 3,164 | 2,641 | 10,105 | 12,746 | 5,052 | 1985 | Dec-98 | |||||||||||||||||||||||||||||
The Hawthorne | — | 6,474 | 30,226 | 36,700 | 1,758 | 6,533 | 31,925 | 38,458 | 12,495 | 2003 | Jul-05 | |||||||||||||||||||||||||||||
The Kennedy | 17,942 | 6,179 | 22,307 | 28,486 | 1,098 | 6,212 | 23,372 | 29,584 | 8,430 | 2005 | Nov-05 | |||||||||||||||||||||||||||||
Hearthstone at Merrill Creek | 25,479 | 6,848 | 30,922 | 37,770 | 1,706 | 6,860 | 32,616 | 39,476 | 7,132 | 2000 | May-08 | |||||||||||||||||||||||||||||
Island Square | — | 21,284 | 89,389 | 110,673 | 2,443 | 21,354 | 91,762 | 113,116 | 18,374 | 2007 | Jul-08 | |||||||||||||||||||||||||||||
Borgata | — | 6,379 | 24,569 | 30,948 | 245 | 6,384 | 24,809 | 31,193 | 6,660 | 2001 | May-07 | |||||||||||||||||||||||||||||
elements too | — | 27,468 | 72,036 | 99,504 | 10,498 | 30,077 | 79,925 | 110,002 | 13,388 | 2010 | Feb-10 | |||||||||||||||||||||||||||||
989elements | — | 8,541 | 45,990 | 54,531 | 581 | 8,517 | 46,595 | 55,112 | 5,363 | 2006 | Dec-09 | |||||||||||||||||||||||||||||
SEATTLE, WA | 68,342 | 90,464 | 350,395 | 440,859 | 30,551 | 94,557 | 376,853 | 471,410 | 94,747 | |||||||||||||||||||||||||||||||
Presidio at Rancho Del Oro | — | 9,164 | 22,694 | 31,858 | 5,073 | 9,600 | 27,331 | 36,931 | 13,176 | 1987 | Jun-04 | |||||||||||||||||||||||||||||
Villas at Carlsbad | — | 6,517 | 10,718 | 17,235 | 1,514 | 6,639 | 12,110 | 18,749 | 5,079 | 1966 | Oct-04 | |||||||||||||||||||||||||||||
SAN DIEGO, CA | — | 15,681 | 33,412 | 49,093 | 6,587 | 16,239 | 39,441 | 55,680 | 18,255 | |||||||||||||||||||||||||||||||
Boronda Manor | — | 1,946 | 8,982 | 10,928 | 8,396 | 3,112 | 16,212 | 19,324 | 6,662 | 1979 | Dec-98 | |||||||||||||||||||||||||||||
Garden Court | — | 888 | 4,188 | 5,076 | 4,385 | 1,455 | 8,006 | 9,461 | 3,393 | 1973 | Dec-98 | |||||||||||||||||||||||||||||
Cambridge Court | — | 3,039 | 12,883 | 15,922 | 13,073 | 5,160 | 23,835 | 28,995 | 10,269 | 1974 | Dec-98 | |||||||||||||||||||||||||||||
Laurel Tree | — | 1,304 | 5,115 | 6,419 | 5,335 | 2,075 | 9,679 | 11,754 | 4,115 | 1977 | Dec-98 | |||||||||||||||||||||||||||||
The Pointe At Harden Ranch | — | 6,388 | 23,854 | 30,242 | 23,263 | 9,731 | 43,774 | 53,505 | 18,246 | 1986 | Dec-98 | |||||||||||||||||||||||||||||
The Pointe At Northridge | — | 2,044 | 8,028 | 10,072 | 9,098 | 3,204 | 15,966 | 19,170 | 6,985 | 1979 | Dec-98 | |||||||||||||||||||||||||||||
The Pointe At Westlake | — | 1,329 | 5,334 | 6,663 | 5,159 | 2,109 | 9,713 | 11,822 | 3,984 | 1975 | Dec-98 | |||||||||||||||||||||||||||||
MONTEREY PENINSULA, CA | — | 16,938 | 68,384 | 85,322 | 68,709 | 26,846 | 127,185 | 154,031 | 53,654 | |||||||||||||||||||||||||||||||
Verano at Rancho Cucamonga Town Square | 54,308 | 13,557 | 3,645 | 17,202 | 52,382 | 22,918 | 46,666 | 69,584 | 21,842 | 2006 | Oct-02 | |||||||||||||||||||||||||||||
Windemere at Sycamore Highland | 24,017 | 5,810 | 23,450 | 29,260 | 2,103 | 5,986 | 25,377 | 31,363 | 13,711 | 2001 | Nov-02 | |||||||||||||||||||||||||||||
INLAND EMPIRE, CA | 78,325 | 19,367 | 27,095 | 46,462 | 54,485 | 28,904 | 72,043 | 100,947 | 35,553 | |||||||||||||||||||||||||||||||
Foothills Tennis Village | — | 3,618 | 14,542 | 18,160 | 5,824 | 3,987 | 19,997 | 23,984 | 10,432 | 1988 | Dec-98 | |||||||||||||||||||||||||||||
Woodlake Village | — | 6,772 | 26,967 | 33,739 | 11,335 | 7,832 | 37,242 | 45,074 | 20,299 | 1979 | Dec-98 | |||||||||||||||||||||||||||||
SACRAMENTO, CA | — | 10,390 | 41,509 | 51,899 | 17,159 | 11,819 | 57,239 | 69,058 | 30,731 | |||||||||||||||||||||||||||||||
Tualatin Heights | 8,976 | 3,273 | 9,134 | 12,407 | 5,655 | 3,707 | 14,355 | 18,062 | 7,736 | 1989 | Dec-98 | |||||||||||||||||||||||||||||
Andover Park | 15,938 | 2,916 | 16,995 | 19,911 | 6,676 | 3,105 | 23,482 | 26,587 | 11,570 | 1989 | Sep-04 | |||||||||||||||||||||||||||||
Hunt Club | 17,020 | 6,014 | 14,870 | 20,884 | 4,850 | 6,295 | 19,439 | 25,734 | 9,810 | 1985 | Sep-04 | |||||||||||||||||||||||||||||
PORTLAND, OR | 41,934 | 12,203 | 40,999 | 53,202 | 17,181 | 13,107 | 57,276 | 70,383 | 29,116 | |||||||||||||||||||||||||||||||
TOTAL WESTERN REGION | 796,203 | 809,287 | 1,537,132 | 2,346,419 | 481,212 | 865,737 | 1,961,894 | 2,827,631 | 633,287 | |||||||||||||||||||||||||||||||
149
Table of Contents
SCHEDULE III — REAL ESTATE OWNED — (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2011
(In thousands)
Cost of | Gross Amount at Which | |||||||||||||||||||||||||||||||||||||||||||
Initial Costs | Total | Improvements | Carried at Close of Period | |||||||||||||||||||||||||||||||||||||||||
Land and | Buildings | Initial | Capitalized | Land and | Buildings & | Total | ||||||||||||||||||||||||||||||||||||||
Land | and | Acquisition | Subsequent | Land | Buildings | Carrying | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||
Encumbrances | Improvements | Improvements | Costs | to Acquisition Costs | Improvements | Improvements | Value | Depreciation | Construction(a) | Acquired | ||||||||||||||||||||||||||||||||||
MID-ATLANTIC REGION | ||||||||||||||||||||||||||||||||||||||||||||
Dominion Middle Ridge | 33,096 | 3,311 | 13,283 | 16,594 | 5,712 | 3,638 | 18,668 | 22,306 | 11,469 | 1990 | Jun-96 | |||||||||||||||||||||||||||||||||
Dominion Lake Ridge | 22,610 | 2,366 | 8,387 | 10,753 | 5,211 | 2,775 | 13,189 | 15,964 | 8,230 | 1987 | Feb-96 | |||||||||||||||||||||||||||||||||
Presidential Greens | — | 11,238 | 18,790 | 30,028 | 7,339 | 11,519 | 25,848 | 37,367 | 15,907 | 1938 | May-02 | |||||||||||||||||||||||||||||||||
The Whitmore | — | 6,418 | 13,411 | 19,829 | 19,602 | 7,424 | 32,007 | 39,431 | 16,461 | 2008 | Apr-02 | |||||||||||||||||||||||||||||||||
Ridgewood | — | 5,612 | 20,086 | 25,698 | 7,214 | 5,836 | 27,076 | 32,912 | 16,168 | 1988 | Aug-02 | |||||||||||||||||||||||||||||||||
The Calvert | — | 263 | 11,189 | 11,452 | 20,825 | 8,275 | 24,002 | 32,277 | 9,209 | 1962 | Nov-03 | |||||||||||||||||||||||||||||||||
Commons at Town Square | — | 136 | 7,724 | 7,860 | 1,013 | 6,874 | 1,999 | 8,873 | 1,115 | 1971 | Dec-03 | |||||||||||||||||||||||||||||||||
Waterside Towers | — | 874 | 38,209 | 39,083 | 10,007 | 26,215 | 22,875 | 49,090 | 12,048 | 1971 | Dec-03 | |||||||||||||||||||||||||||||||||
Waterside Townhomes | — | 129 | 3,724 | 3,853 | 658 | 2,725 | 1,786 | 4,511 | 852 | 1971 | Dec-03 | |||||||||||||||||||||||||||||||||
Wellington Place at Olde Town | 28,681 | 13,753 | 36,059 | 49,812 | 16,314 | 14,541 | 51,585 | 66,126 | 22,649 | 2008 | Sep-05 | |||||||||||||||||||||||||||||||||
Andover House | — | 14,357 | 51,577 | 65,934 | 2,449 | 14,360 | 54,023 | 68,383 | 15,087 | 2004 | Mar-07 | |||||||||||||||||||||||||||||||||
Sullivan Place | — | 1,137 | 103,676 | 104,813 | 3,080 | 1,181 | 106,712 | 107,893 | 25,545 | 2007 | Dec-07 | |||||||||||||||||||||||||||||||||
Circle Towers | 69,771 | 33,011 | 107,051 | 140,062 | 5,927 | 32,876 | 113,113 | 145,989 | 23,714 | 1972 | Mar-08 | |||||||||||||||||||||||||||||||||
Delancey at Shirlington | — | 21,606 | 66,765 | 88,371 | 966 | 21,616 | 67,721 | 89,337 | 14,696 | 2006/07 | Mar-08 | |||||||||||||||||||||||||||||||||
View 14 | — | 5,710 | 97,941 | 103,651 | 1,166 | 5,721 | 99,096 | 104,817 | 2,793 | 2009 | Jun-11 | |||||||||||||||||||||||||||||||||
Signal Hill | 42,074 | 13,290 | — | 13,290 | 68,930 | 25,327 | 56,893 | 82,220 | 6,353 | 2010 | Nov-10 | |||||||||||||||||||||||||||||||||
METROPOLITAN DC | 196,232 | 133,211 | 597,872 | 731,083 | 176,413 | 190,903 | 716,593 | 907,496 | 202,296 | |||||||||||||||||||||||||||||||||||
Dominion Kings Place | 16,121 | 1,565 | 7,007 | 8,572 | 3,810 | 1,800 | 10,582 | 12,382 | 6,751 | 1983 | Dec-92 | |||||||||||||||||||||||||||||||||
Dominion At Eden Brook | 21,308 | 2,361 | 9,384 | 11,745 | 5,920 | 2,913 | 14,752 | 17,665 | 9,936 | 1984 | Dec-92 | |||||||||||||||||||||||||||||||||
Ellicott Grove | — | 2,920 | 9,099 | 12,019 | 22,219 | 5,189 | 29,049 | 34,238 | 17,876 | 2008 | Jul-94 | |||||||||||||||||||||||||||||||||
Dominion Constant Freindship | 10,683 | 903 | 4,669 | 5,572 | 3,315 | 1,146 | 7,741 | 8,887 | 4,883 | 1990 | May-95 | |||||||||||||||||||||||||||||||||
Lakeside Mill | 15,242 | 2,666 | 10,109 | 12,775 | 3,707 | 2,849 | 13,633 | 16,482 | 9,166 | 1989 | Dec-99 | |||||||||||||||||||||||||||||||||
Tamar Meadow | 17,602 | 4,145 | 17,150 | 21,295 | 4,381 | 4,502 | 21,174 | 25,676 | 12,142 | 1990 | Nov-02 | |||||||||||||||||||||||||||||||||
Calvert’s Walk | 18,043 | 4,408 | 24,692 | 29,100 | 5,833 | 4,567 | 30,366 | 34,933 | 14,602 | 1988 | Mar-04 | |||||||||||||||||||||||||||||||||
Arborview Apartments | — | 4,653 | 23,952 | 28,605 | 5,857 | 5,058 | 29,404 | 34,462 | 15,039 | 1992 | Mar-04 | |||||||||||||||||||||||||||||||||
Liriope Apartments | — | 1,620 | 6,791 | 8,411 | 896 | 1,629 | 7,678 | 9,307 | 3,752 | 1997 | Mar-04 | |||||||||||||||||||||||||||||||||
20 Lambourne | 32,795 | 11,750 | 45,590 | 57,340 | 3,471 | 11,837 | 48,974 | 60,811 | 11,613 | 2003 | Mar-08 | |||||||||||||||||||||||||||||||||
Domain Brewers Hill | — | 4,669 | 40,630 | 45,299 | 247 | 4,669 | 40,877 | 45,546 | 3,208 | 2009 | Aug-10 | |||||||||||||||||||||||||||||||||
BALTIMORE, MD | 131,794 | 41,660 | 199,073 | 240,733 | 59,656 | 46,159 | 254,230 | 300,389 | 108,968 | |||||||||||||||||||||||||||||||||||
Dominion Olde West | — | 1,965 | 12,204 | 14,169 | 5,216 | 2,606 | 16,779 | 19,385 | 12,514 | 1978/82/84/85/87 | Dec-84 & Aug-91 | |||||||||||||||||||||||||||||||||
Dominion Creekwood | — | — | — | — | 4,975 | 274 | 4,701 | 4,975 | 3,014 | 1984 | Aug-91 | |||||||||||||||||||||||||||||||||
Dominion English Hills | — | 1,979 | 11,524 | 13,503 | 8,224 | 2,873 | 18,854 | 21,727 | 11,134 | 1969/76 | Dec-91 | |||||||||||||||||||||||||||||||||
Gayton Pointe Townhomes | — | 826 | 5,148 | 5,974 | 28,743 | 3,319 | 31,398 | 34,717 | 21,308 | 2007 | Sep-95 | |||||||||||||||||||||||||||||||||
Dominion West End | 25,582 | 2,059 | 15,049 | 17,108 | 12,222 | 4,502 | 24,828 | 29,330 | 15,049 | 1989 | Dec-95 | |||||||||||||||||||||||||||||||||
Waterside At Ironbridge | — | 1,844 | 13,238 | 15,082 | 6,513 | 2,249 | 19,346 | 21,595 | 10,433 | 1987 | Sep-97 | |||||||||||||||||||||||||||||||||
Carriage Homes at Wyndham | — | 474 | 30,997 | 31,471 | 7,001 | 3,764 | 34,708 | 38,472 | 17,587 | 1998 | Nov-03 | |||||||||||||||||||||||||||||||||
Legacy at Mayland | 41,507 | — | — | — | 19,269 | 1,772 | 17,497 | 19,269 | 12,138 | 2007 | Dec-91 | |||||||||||||||||||||||||||||||||
RICHMOND, VA | 67,089 | 9,147 | 88,160 | 97,307 | 92,163 | 21,359 | 168,111 | 189,470 | 103,177 | |||||||||||||||||||||||||||||||||||
Forest Lake At Oyster Point | — | 780 | 8,862 | 9,642 | 8,212 | 1,346 | 16,508 | 17,854 | 10,810 | 1986 | Aug-95 | |||||||||||||||||||||||||||||||||
Woodscape | — | 798 | 7,209 | 8,007 | 8,988 | 2,027 | 14,968 | 16,995 | 11,874 | 1974/76 | Dec-87 | |||||||||||||||||||||||||||||||||
Eastwind | — | 155 | 5,317 | 5,472 | 5,762 | 601 | 10,633 | 11,234 | 7,864 | 1970 | Apr-88 | |||||||||||||||||||||||||||||||||
Dominion Waterside At Lynnhave | — | 1,824 | 4,107 | 5,931 | 5,569 | 2,198 | 9,302 | 11,500 | 6,384 | 1966 | Aug-96 | |||||||||||||||||||||||||||||||||
Heather Lake | — | 617 | 3,400 | 4,017 | 9,532 | 1,194 | 12,355 | 13,549 | 10,729 | 1972/74 | Mar-80 | |||||||||||||||||||||||||||||||||
Dominion Yorkshire Downs | — | 1,089 | 8,582 | 9,671 | 5,391 | 1,489 | 13,573 | 15,062 | 7,673 | 1987 | Dec-97 | |||||||||||||||||||||||||||||||||
NORFOLK, VA | — | 5,263 | 37,477 | 42,740 | 43,454 | 8,855 | 77,339 | 86,194 | 55,334 | |||||||||||||||||||||||||||||||||||
Garrison Square | — | 5,591 | 91,027 | 96,618 | 2,689 | 5,591 | 93,716 | 99,307 | 6,887 | 1887/1990 | Sep-10 | |||||||||||||||||||||||||||||||||
Ridge at Blue Hills | 24,761 | 6,039 | 34,869 | 40,908 | 359 | 6,042 | 35,225 | 41,267 | 2,657 | 2007 | Sep-10 | |||||||||||||||||||||||||||||||||
Inwood West | 60,702 | 20,778 | 88,096 | 108,874 | 893 | 20,779 | 88,988 | 109,767 | 3,812 | 2006 | Apr-11 | |||||||||||||||||||||||||||||||||
14 North | — | 10,961 | 51,175 | 62,136 | 1,088 | 10,961 | 52,263 | 63,224 | 2,335 | 2005 | Apr-11 | |||||||||||||||||||||||||||||||||
BOSTON, MA | 85,463 | 43,369 | 265,167 | 308,536 | 5,029 | 43,373 | 270,192 | 313,565 | 15,691 | |||||||||||||||||||||||||||||||||||
10 Hanover Square | 205,526 | 41,432 | 218,983 | 260,415 | 2,085 | 41,432 | 221,068 | 262,500 | 8,945 | 2005 | Apr-11 | |||||||||||||||||||||||||||||||||
21 Chelsea | 35,568 | 36,399 | 107,154 | 143,553 | 409 | 36,399 | 107,563 | 143,962 | 2,109 | 2001 | Aug-11 | |||||||||||||||||||||||||||||||||
Rivergate | — | 114,410 | 324,920 | 439,330 | 2,162 | 114,414 | 327,078 | 441,492 | 8,215 | 1985 | Jul-11 | |||||||||||||||||||||||||||||||||
95 Wall Street | — | 57,637 | 266,255 | 323,892 | 137 | 57,641 | 266,388 | 324,029 | 5,738 | 2008 | Aug-11 | |||||||||||||||||||||||||||||||||
NEW YORK, NY | 241,094 | 249,878 | 917,312 | 1,167,190 | 4,793 | 249,886 | 922,097 | 1,171,983 | 25,007 | |||||||||||||||||||||||||||||||||||
Greens At Falls Run | — | 2,731 | 5,300 | 8,031 | 4,665 | 3,116 | 9,580 | 12,696 | 5,911 | 1989 | May-95 | |||||||||||||||||||||||||||||||||
Manor At England Run | — | 3,194 | 13,505 | 16,699 | 20,133 | 5,142 | 31,690 | 36,832 | 19,134 | 1990 | May-95 | |||||||||||||||||||||||||||||||||
Greens At Schumaker Pond | — | 710 | 6,118 | 6,828 | 5,037 | 960 | 10,905 | 11,865 | 7,115 | 1988 | May-95 | |||||||||||||||||||||||||||||||||
OTHER MID-ATLANTIC | — | 6,635 | 24,923 | 31,558 | 29,835 | 9,218 | 52,175 | 61,393 | 32,160 | |||||||||||||||||||||||||||||||||||
TOTAL MID-ATLANTIC REGION | 721,672 | 489,163 | 2,129,984 | 2,619,147 | 411,343 | 569,753 | 2,460,737 | 3,030,490 | 542,633 | |||||||||||||||||||||||||||||||||||
150
Table of Contents
SCHEDULE III — REAL ESTATE OWNED — (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2011
(In thousands)
Cost of | Gross Amount at Which | |||||||||||||||||||||||||||||||||||||||
Initial Costs | Total | Improvements | Carried at Close of Period | |||||||||||||||||||||||||||||||||||||
Land and | Buildings | Initial | Capitalized | Land and | Buildings & | Total | ||||||||||||||||||||||||||||||||||
Land | and | Acquisition | Subsequent | Land | Buildings | Carrying | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||
Encumbrances | Improvements | Improvements | Costs | to Acquisition Costs | Improvements | Improvements | Value | Depreciation | Construction(a) | Acquired | ||||||||||||||||||||||||||||||
SOUTHEASTERN REGION | ||||||||||||||||||||||||||||||||||||||||
Summit West | — | 2,176 | 4,710 | 6,886 | 7,379 | 3,097 | 11,168 | 14,265 | 8,712 | 1972 | Dec-92 | |||||||||||||||||||||||||||||
The Breyley | — | 1,780 | 2,458 | 4,238 | 16,499 | 3,204 | 17,533 | 20,737 | 13,772 | 2007 | Sep-93 | |||||||||||||||||||||||||||||
Lakewood Place | 20,561 | 1,395 | 10,647 | 12,042 | 7,666 | 2,120 | 17,588 | 19,708 | 11,578 | 1986 | Mar-94 | |||||||||||||||||||||||||||||
Hunters Ridge | — | 2,462 | 10,942 | 13,404 | 6,075 | 3,490 | 15,989 | 19,479 | 9,963 | 1992 | Jun-95 | |||||||||||||||||||||||||||||
Bay Meadow | — | 2,893 | 9,254 | 12,147 | 8,816 | 3,994 | 16,969 | 20,963 | 11,178 | 2004 | Dec-96 | |||||||||||||||||||||||||||||
Cambridge Woods | — | 1,791 | 7,166 | 8,957 | 7,281 | 2,492 | 13,746 | 16,238 | 8,771 | 1985 | Jun-97 | |||||||||||||||||||||||||||||
Sugar Mill Creek | — | 2,242 | 7,553 | 9,795 | 5,616 | 2,648 | 12,763 | 15,411 | 7,243 | 1988 | Dec-98 | |||||||||||||||||||||||||||||
Inlet Bay | — | 7,702 | 23,150 | 30,852 | 11,958 | 8,857 | 33,953 | 42,810 | 19,948 | 1988/89 | Jun-03 | |||||||||||||||||||||||||||||
MacAlpine Place | — | 10,869 | 36,858 | 47,727 | 5,070 | 11,091 | 41,706 | 52,797 | 18,542 | 2001 | Dec-04 | |||||||||||||||||||||||||||||
The Vintage Lofts at West End | — | 6,611 | 37,663 | 44,274 | 7,740 | 15,089 | 36,925 | 52,014 | 8,863 | 2009 | Jul-09 | |||||||||||||||||||||||||||||
Gallery at Bayport II | — | 5,775 | 17,236 | 23,011 | 2,259 | 8,536 | 16,734 | 25,270 | 6,427 | 2008 | Oct-06 | |||||||||||||||||||||||||||||
Island Walk | — | 7,231 | 19,897 | 27,128 | 10,038 | 4,935 | 32,231 | 37,166 | 17,716 | 1985/87 | Jul-06 | |||||||||||||||||||||||||||||
TAMPA, FL | 20,561 | 52,927 | 187,534 | 240,461 | 96,397 | 69,553 | 267,305 | 336,858 | 142,713 | |||||||||||||||||||||||||||||||
Seabrook | — | 1,846 | 4,155 | 6,001 | 7,161 | 2,611 | 10,551 | 13,162 | 7,618 | 2004 | Feb-96 | |||||||||||||||||||||||||||||
The Canopy Apartment Villas | — | 2,895 | 6,456 | 9,351 | 21,736 | 5,288 | 25,799 | 31,087 | 19,013 | 2008 | Mar-93 | |||||||||||||||||||||||||||||
Altamira Place | 15,640 | 1,533 | 11,076 | 12,609 | 18,659 | 3,190 | 28,078 | 31,268 | 20,860 | 2007 | Apr-94 | |||||||||||||||||||||||||||||
Regatta Shore | — | 757 | 6,608 | 7,365 | 13,909 | 1,894 | 19,380 | 21,274 | 13,816 | 2007 | Jun-94 | |||||||||||||||||||||||||||||
Alafaya Woods | 20,049 | 1,653 | 9,042 | 10,695 | 7,612 | 2,394 | 15,913 | 18,307 | 10,523 | 2006 | Oct-94 | |||||||||||||||||||||||||||||
Los Altos | 24,352 | 2,804 | 12,349 | 15,153 | 7,768 | 3,770 | 19,151 | 22,921 | 11,655 | 2004 | Oct-96 | |||||||||||||||||||||||||||||
Lotus Landing | — | 2,185 | 8,639 | 10,824 | 7,802 | 2,717 | 15,909 | 18,626 | 8,892 | 2006 | Jul-97 | |||||||||||||||||||||||||||||
Seville On The Green | — | 1,282 | 6,498 | 7,780 | 6,049 | 1,668 | 12,161 | 13,829 | 7,084 | 2004 | Oct-97 | |||||||||||||||||||||||||||||
Ashton @ Waterford | 25,958 | 3,872 | 17,538 | 21,410 | 1,823 | 4,041 | 19,192 | 23,233 | 10,786 | 2000 | May-98 | |||||||||||||||||||||||||||||
Arbors at Lee Vista DCO | — | 6,692 | 12,860 | 19,552 | 10,812 | 6,972 | 23,392 | 30,364 | 14,357 | 2007 | Aug-06 | |||||||||||||||||||||||||||||
The Place on Millenia Blvd | — | 12,172 | 37,143 | 49,315 | 1,545 | 12,201 | 38,659 | 50,860 | 10,965 | 2007 | Jan-08 | |||||||||||||||||||||||||||||
ORLANDO, FL | 85,999 | 37,691 | 132,364 | 170,055 | 104,876 | 46,746 | 228,185 | 274,931 | 135,569 | |||||||||||||||||||||||||||||||
Legacy Hill | — | 1,148 | 5,867 | 7,015 | 7,841 | 1,692 | 13,164 | 14,856 | 9,357 | 1977 | Nov-95 | |||||||||||||||||||||||||||||
Hickory Run | — | 1,469 | 11,584 | 13,053 | 8,458 | 1,989 | 19,522 | 21,511 | 11,013 | 1989 | Dec-95 | |||||||||||||||||||||||||||||
Carrington Hills | — | 2,117 | — | 2,117 | 32,205 | 4,278 | 30,044 | 34,322 | 16,264 | 1999 | Dec-95 | |||||||||||||||||||||||||||||
Brookridge | — | 708 | 5,461 | 6,169 | 3,844 | 1,007 | 9,006 | 10,013 | 5,588 | 1986 | Mar-96 | |||||||||||||||||||||||||||||
Breckenridge | — | 766 | 7,714 | 8,480 | 3,688 | 1,157 | 11,011 | 12,168 | 6,299 | 1986 | Mar-97 | |||||||||||||||||||||||||||||
Colonnade | — | 1,460 | 16,015 | 17,475 | 3,703 | 1,810 | 19,368 | 21,178 | 9,157 | 1998 | Jan-99 | |||||||||||||||||||||||||||||
The Preserve at Brentwood | 24,591 | 3,181 | 24,674 | 27,855 | 4,895 | 3,354 | 29,396 | 32,750 | 14,627 | 1998 | Jun-04 | |||||||||||||||||||||||||||||
Polo Park | — | 4,583 | 16,293 | 20,876 | 15,090 | 5,491 | 30,475 | 35,966 | 14,135 | 2008 | May-06 | |||||||||||||||||||||||||||||
NASHVILLE, TN | 24,591 | 15,432 | 87,608 | 103,040 | 79,724 | 20,778 | 161,986 | 182,764 | 86,440 | |||||||||||||||||||||||||||||||
Greentree | — | 1,634 | 11,227 | 12,861 | 12,531 | 2,761 | 22,631 | 25,392 | 14,972 | 2007 | Jul-94 | |||||||||||||||||||||||||||||
Westland | — | 1,835 | 14,865 | 16,700 | 10,964 | 3,298 | 24,366 | 27,664 | 16,067 | 1990 | May-96 | |||||||||||||||||||||||||||||
Antlers | — | 4,034 | 11,193 | 15,227 | 12,629 | 5,224 | 22,632 | 27,856 | 14,941 | 1985 | May-96 | |||||||||||||||||||||||||||||
St Johns Plantation | — | 4,288 | 33,102 | 37,390 | 5,302 | 4,542 | 38,150 | 42,692 | 16,538 | 2006 | Jun-05 | |||||||||||||||||||||||||||||
The Kensley | — | 3,179 | 30,711 | 33,890 | 1,719 | 3,193 | 32,416 | 35,609 | 9,143 | 2004 | Jul-07 | |||||||||||||||||||||||||||||
JACKSONVILLE, FL | — | 14,970 | 101,098 | 116,068 | 43,145 | 19,018 | 140,195 | 159,213 | 71,661 | |||||||||||||||||||||||||||||||
The Reserve and Park at Riverbridge | 40,133 | 15,968 | 56,401 | 72,369 | 5,130 | 16,282 | 61,217 | 77,499 | 26,261 | 1999/2001 | Dec-04 | |||||||||||||||||||||||||||||
The Groves | — | 790 | 4,767 | 5,557 | 5,248 | 1,624 | 9,181 | 10,805 | 6,534 | 1989 | Dec-95 | |||||||||||||||||||||||||||||
Mallards of Brandywine | — | 766 | 5,407 | 6,173 | 3,016 | 1,106 | 8,083 | 9,189 | 4,876 | 1985 | Jul-97 | |||||||||||||||||||||||||||||
PIERPOINT Port Orange | — | 3,373 | 7,096 | 10,469 | 5,678 | 3,808 | 12,339 | 16,147 | 11,060 | 2007 | Dec-05 | |||||||||||||||||||||||||||||
OTHER FLORIDA | 40,133 | 20,897 | 73,671 | 94,568 | 19,072 | 22,820 | 90,820 | 113,640 | 48,731 | |||||||||||||||||||||||||||||||
TOTAL SOUTHEASTERN REGION | 171,284 | 141,917 | 582,275 | 724,192 | 343,214 | 178,915 | 888,491 | 1,067,406 | 485,114 | |||||||||||||||||||||||||||||||
SOUTHWESTERN REGION | ||||||||||||||||||||||||||||||||||||||||
THIRTY377 | 31,816 | 24,036 | 32,951 | 56,987 | 6,117 | 24,229 | 38,875 | 63,104 | 13,838 | 2007 | Aug-06 | |||||||||||||||||||||||||||||
Legacy Village | 59,300 | 16,882 | 100,102 | 116,984 | 4,071 | 17,029 | 104,026 | 121,055 | 24,322 | 2005/06/07 | Mar-08 | |||||||||||||||||||||||||||||
Garden Oaks | — | 2,132 | 5,367 | 7,499 | 1,093 | 6,878 | 1,714 | 8,592 | 1,052 | 1979 | Mar-07 | |||||||||||||||||||||||||||||
Glenwood | — | 7,903 | 554 | 8,457 | 1,095 | 8,112 | 1,440 | 9,552 | 714 | 1970 | May-07 | |||||||||||||||||||||||||||||
Talisker of Addison | 7,157 | 10,440 | 634 | 11,074 | 1,506 | 10,830 | 1,750 | 12,580 | 894 | 1975 | May-07 | |||||||||||||||||||||||||||||
Springhaven | — | 6,688 | 3,354 | 10,042 | 745 | 8,256 | 2,531 | 10,787 | 1,571 | 1977 | Apr-07 | |||||||||||||||||||||||||||||
Clipper Pointe | — | 13,221 | 2,507 | 15,728 | 1,664 | 14,860 | 2,532 | 17,392 | 1,547 | 1978 | May-07 | |||||||||||||||||||||||||||||
Highlands of Preston | — | 2,151 | 8,168 | 10,319 | 29,559 | 5,886 | 33,992 | 39,878 | 16,633 | 2008 | Mar-98 | |||||||||||||||||||||||||||||
The Belmont | — | 11,720 | — | 11,720 | 54,825 | 21,016 | 45,529 | 66,545 | 8,799 | 2010 | Apr-10 | |||||||||||||||||||||||||||||
Savoye | — | 7,374 | 3,367 | 10,741 | 55,553 | 14,660 | 51,634 | 66,294 | 6,980 | 2010 | Aug-10 | |||||||||||||||||||||||||||||
DALLAS, TX | 98,273 | 102,547 | 157,004 | 259,551 | 156,228 | 131,756 | 284,023 | 415,779 | 76,350 | |||||||||||||||||||||||||||||||
Finisterra | — | 1,274 | 26,392 | 27,666 | 4,351 | 1,735 | 30,282 | 32,017 | 13,999 | 1997 | Mar-98 | |||||||||||||||||||||||||||||
Sierra Foothills | 20,978 | 2,728 | — | 2,728 | 21,204 | 5,102 | 18,830 | 23,932 | 12,968 | 1998 | Feb-98 | |||||||||||||||||||||||||||||
Sierra Canyon | 10,717 | 1,810 | 12,964 | 14,774 | 2,197 | 2,071 | 14,900 | 16,971 | 9,381 | 2001 | Dec-01 | |||||||||||||||||||||||||||||
Waterford at Peoria | — | 2,225 | 21,593 | 23,818 | 1,635 | 2,980 | 22,473 | 25,453 | 4,623 | 2008 | Aug-08 | |||||||||||||||||||||||||||||
Lumiere | — | 5,092 | 11,998 | 17,090 | 6,971 | 4,726 | 19,335 | 24,061 | 12,775 | 1996 | May-06 | |||||||||||||||||||||||||||||
Residences at Stadium Village | — | 7,930 | — | 7,930 | 41,418 | 15,170 | 34,178 | 49,348 | 6,490 | 2009 | May-09 | |||||||||||||||||||||||||||||
PHOENIX, AZ | 31,695 | 21,059 | 72,947 | 94,006 | 77,776 | 31,784 | 139,998 | 171,782 | 60,236 | |||||||||||||||||||||||||||||||
Barton Creek Landing | — | 3,151 | 14,269 | 17,420 | 20,208 | 4,414 | 33,214 | 37,628 | 12,086 | 1986 | Mar-02 | |||||||||||||||||||||||||||||
Residences at the Domain | 25,079 | 4,034 | 55,256 | 59,290 | 1,226 | 4,086 | 56,430 | 60,516 | 11,488 | 2007 | Aug-08 | |||||||||||||||||||||||||||||
AUSTIN, TX | 25,079 | 7,185 | 69,525 | 76,710 | 21,434 | 8,500 | 89,644 | 98,144 | 23,574 | |||||||||||||||||||||||||||||||
TOTAL SOUTHWESTERN REGION | 155,047 | 130,791 | 299,476 | 430,267 | 255,438 | 172,040 | 513,665 | 685,705 | 160,160 | |||||||||||||||||||||||||||||||
151
Table of Contents
SCHEDULE III — REAL ESTATE OWNED — (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2011
(In thousands)
Cost of | Gross Amount at Which | |||||||||||||||||||||||||||||||||||||||||||
Initial Costs | Total | Improvements | Carried at Close of Period | |||||||||||||||||||||||||||||||||||||||||
Land and | Buildings | Initial | Capitalized | Land and | Buildings & | Total | ||||||||||||||||||||||||||||||||||||||
Land | and | Acquisition | Subsequent | Land | Buildings | Carrying | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||
Encumbrances | Improvements | Improvements | Costs | to Acquisition Costs | Improvements | Improvements | Value | Depreciation | Construction(a) | Acquired | ||||||||||||||||||||||||||||||||||
REAL ESTATE UNDER DEVELOPMENT | ||||||||||||||||||||||||||||||||||||||||||||
Los Alisos (formerly Mission Viejo) | — | 17,298 | — | 17,298 | 9,496 | 16,385 | 10,409 | 26,794 | — | |||||||||||||||||||||||||||||||||||
Mission Bay | — | 23,625 | — | 23,625 | 14,054 | 23,653 | 14,026 | 37,679 | — | |||||||||||||||||||||||||||||||||||
Belmont Townhomes | — | 288 | — | 288 | 1,659 | 854 | 1,093 | 1,947 | — | |||||||||||||||||||||||||||||||||||
2400 14th Street | — | 31,747 | — | 31,747 | 33,152 | 31,393 | 33,506 | 64,899 | — | |||||||||||||||||||||||||||||||||||
Village at Bella Terra | — | 25,000 | — | 25,000 | 7,202 | 25,000 | 7,202 | 32,202 | — | |||||||||||||||||||||||||||||||||||
Savoye2 (Phase II of Vitruvian Park) | 25,076 | 6,510 | 3,774 | 10,284 | 56,423 | 11,108 | 55,599 | 66,707 | 570 | |||||||||||||||||||||||||||||||||||
Phase III of Vitruvian Park | — | 7,659 | 3,601 | 11,260 | 7,258 | 7,659 | 10,859 | 18,518 | — | |||||||||||||||||||||||||||||||||||
TOTAL REAL ESTATE UNDER DEVELOPMENT | 25,076 | 112,127 | 7,375 | 119,502 | 129,244 | 116,052 | 132,694 | 248,746 | 570 | |||||||||||||||||||||||||||||||||||
LAND | ||||||||||||||||||||||||||||||||||||||||||||
Waterside | — | 11,862 | 93 | 11,955 | 129 | 11,862 | 222 | 12,084 | 201 | |||||||||||||||||||||||||||||||||||
Presidio | — | 1,524 | — | 1,524 | 921 | 1,300 | 1,145 | 2,445 | — | |||||||||||||||||||||||||||||||||||
Parkers Landing II TRS | — | 1,710 | — | 1,710 | 762 | 1,511 | 961 | 2,472 | (1,852 | ) | ||||||||||||||||||||||||||||||||||
3033 Wilshire | — | 11,055 | — | 11,055 | 4,990 | 11,049 | 4,996 | 16,045 | — | |||||||||||||||||||||||||||||||||||
DCO Beach Walk LLC | — | 12,878 | — | 12,878 | 194 | 12,878 | 194 | 13,072 | — | |||||||||||||||||||||||||||||||||||
7 Harcourt | — | 884 | — | 884 | 3,767 | 884 | 3,767 | 4,651 | 7 | |||||||||||||||||||||||||||||||||||
Vitruvian | — | 8,005 | 16,006 | 24,011 | 46,326 | 38,380 | 31,957 | 70,337 | — | |||||||||||||||||||||||||||||||||||
Spring Valley Road | — | 2,875 | — | 2,875 | 1,843 | 2,875 | 1,843 | 4,718 | 1 | |||||||||||||||||||||||||||||||||||
TOTAL LAND | — | 50,793 | 16,099 | 66,892 | 58,932 | 80,739 | 45,085 | 125,824 | (1,643 | ) | ||||||||||||||||||||||||||||||||||
TOTAL REAL ESTATE UNDER DEVELOPMENT | 25,076 | 162,920 | 23,474 | 186,394 | 188,176 | 196,791 | 177,779 | 374,570 | (1,073 | ) | ||||||||||||||||||||||||||||||||||
COMMERCIAL HELD FOR DEVELOPMENT | ||||||||||||||||||||||||||||||||||||||||||||
Hanover Village | — | 1,624 | — | 1,624 | — | 1,104 | 520 | 1,624 | 533 | |||||||||||||||||||||||||||||||||||
The Calvert — commercial side | — | 34 | 1,598 | 1,632 | 1,174 | 1,172 | 1,634 | 2,806 | 771 | |||||||||||||||||||||||||||||||||||
Circle Towers Office Bldg | — | 1,407 | 4,498 | 5,905 | 1,275 | 1,380 | 5,800 | 7,180 | 1,023 | |||||||||||||||||||||||||||||||||||
Brookhaven Shopping Center | — | 4,138 | 7,093 | 11,231 | 11,393 | 7,733 | 14,891 | 22,624 | 2,523 | |||||||||||||||||||||||||||||||||||
Bellevue Plaza retail | 22,271 | 24,377 | 7,517 | 31,894 | 96 | 29,920 | 2,070 | 31,990 | 230 | |||||||||||||||||||||||||||||||||||
Grandview DCO | — | 7,266 | 9,702 | 16,968 | 2,105 | 10,750 | 8,323 | 19,073 | 6,523 | |||||||||||||||||||||||||||||||||||
TOTAL COMMERCIAL | 22,271 | 38,846 | 30,408 | 69,254 | 16,043 | 52,059 | 33,238 | 85,297 | 11,603 | |||||||||||||||||||||||||||||||||||
Other(b) | — | — | — | — | 3,372 | 5 | 3,367 | 3,372 | 3 | |||||||||||||||||||||||||||||||||||
TOTAL CORPORATE | — | — | — | — | 3,372 | 5 | 3,367 | 3,372 | 3 | |||||||||||||||||||||||||||||||||||
TOTAL COMMERCIAL & CORPORATE | 22,271 | 38,846 | 30,408 | 69,254 | 19,415 | 52,064 | 36,605 | 88,669 | 11,606 | |||||||||||||||||||||||||||||||||||
Total Real Estate Owned | $ | 1,891,553 | $ | 1,772,924 | $ | 4,602,749 | $ | 6,375,673 | $ | 1,698,798 | $ | 2,035,300 | $ | 6,039,171 | $ | 8,074,471 | $ | 1,831,727 | ||||||||||||||||||||||||||
(a) | Date of construction or date of last major renovation. | |
(b) | Includes unallocated accruals and capital expenditures. | |
The aggregate cost for federal income tax purposes was approximately $7.3 billion at December 31, 2011. | ||
The depreciable life for all buildings is 35 years. |
152
Table of Contents
SCHEDULE III — REAL ESTATE OWNED — (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2011
(In thousands)
2011 | 2010 | 2009 | ||||||||||
Balance at beginning of the year | $ | 6,881,347 | $ | 6,315,047 | $ | 5,831,753 | ||||||
Real estate acquired | 1,590,514 | 425,825 | 28,220 | |||||||||
Capital expenditures and development | 189,711 | 167,986 | 273,552 | |||||||||
Real estate sold | (587,101 | ) | (20,328 | ) | — | |||||||
Retirement of fully depreciated assets | — | (7,183 | ) | (4,407 | ) | |||||||
Real estate acquired through JV consolidation | — | — | 185,929 | |||||||||
Balance at end of the year | $ | 8,074,471 | $ | 6,881,347 | $ | 6,315,047 | ||||||
2011 | 2010 | 2009 | ||||||||||
Balance at beginning of the year | $ | 1,638,326 | $ | 1,351,293 | $ | 1,078,689 | ||||||
Depreciation expense for the year | 341,925 | 297,889 | 277,011 | |||||||||
Accumulated depreciation on sales | (148,524 | ) | (3,673 | ) | — | |||||||
Accumulated depreciation on retirements | — | (7,183 | ) | (4,407 | ) | |||||||
Balance at end of year | $ | 1,831,727 | $ | 1,638,326 | $ | 1,351,293 | ||||||
153
Table of Contents
SCHEDULE III — REAL ESTATE OWNED
FOR THE YEAR ENDED DECEMBER 31, 2011
(In thousands)
Cost of | ||||||||||||||||||||||||||||||||||||||||||||
Improvements | Gross Amount at Which | |||||||||||||||||||||||||||||||||||||||||||
Initial Costs | Total | Capitalized | Carried at Close of Period | |||||||||||||||||||||||||||||||||||||||||
Land and | Buildings | Initial | Subsequent | Land and | Buildings | Total | ||||||||||||||||||||||||||||||||||||||
Land | and | Acquisition | to Acquisition | Land | Buildings | Carrying | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||
Encumbrances | Improvements | Improvements | Costs | Costs | Improvements | Improvements | Value | Depreciation | Construction (a) | Acquired | ||||||||||||||||||||||||||||||||||
WESTERN REGION | ||||||||||||||||||||||||||||||||||||||||||||
Harbor at Mesa Verde | $ | 47,091 | $ | 20,477 | $ | 28,538 | $ | 49,015 | $ | 11,271 | $ | 20,774 | $ | 39,512 | $ | 60,286 | $ | 20,518 | 2003 | Jun-03 | ||||||||||||||||||||||||
Pine Brook Village | 18,270 | 2,582 | 25,504 | 28,086 | 4,638 | 3,886 | 28,838 | 32,724 | 14,045 | 1979 | Jun-03 | |||||||||||||||||||||||||||||||||
Pacific Shores | 19,145 | 7,345 | 22,624 | 29,969 | 7,777 | 7,596 | 30,150 | 37,746 | 15,105 | 2003 | Jun-03 | |||||||||||||||||||||||||||||||||
Huntington Vista | 31,274 | 8,055 | 22,486 | 30,541 | 6,102 | 8,243 | 28,400 | 36,643 | 14,479 | 1970 | Jun-03 | |||||||||||||||||||||||||||||||||
Missions at Back Bay | 11,326 | 229 | 14,129 | 14,358 | 1,871 | 10,739 | 5,490 | 16,229 | 2,972 | 1969 | Dec-03 | |||||||||||||||||||||||||||||||||
Coronado at Newport — North | 48,448 | 62,516 | 46,082 | 108,598 | 19,536 | 66,591 | 61,543 | 128,134 | 29,146 | 2000 | Oct-04 | |||||||||||||||||||||||||||||||||
Huntington Villas | 55,752 | 61,535 | 18,017 | 79,552 | 5,014 | 61,855 | 22,711 | 84,566 | 10,965 | 1972 | Sep-04 | |||||||||||||||||||||||||||||||||
Villa Venetia | — | 70,825 | 24,179 | 95,004 | 5,424 | 70,984 | 29,444 | 100,428 | 13,401 | 1972 | Oct-04 | |||||||||||||||||||||||||||||||||
Vista Del Rey | 12,659 | 10,670 | 7,080 | 17,750 | 1,670 | 10,783 | 8,637 | 19,420 | 4,112 | 1969 | Sep-04 | |||||||||||||||||||||||||||||||||
Coronado South | 92,188 | 58,785 | 50,067 | 108,852 | 12,351 | 59,058 | 62,145 | 121,203 | 28,473 | 2000 | Mar-05 | |||||||||||||||||||||||||||||||||
Pine Brook Village II | — | 25,922 | 60,961 | 86,883 | 1,353 | 25,997 | 62,239 | 88,236 | 13,190 | 1975 | May-08 | |||||||||||||||||||||||||||||||||
ORANGE COUNTY, CA | 336,153 | 328,941 | 319,667 | 648,608 | 77,007 | 346,506 | 379,109 | 725,615 | 166,406 | |||||||||||||||||||||||||||||||||||
2000 Post Street | — | 9,861 | 44,578 | 54,439 | 6,848 | 10,178 | 51,109 | 61,287 | 19,648 | 1987 | Dec-98 | |||||||||||||||||||||||||||||||||
Birch Creek | — | 4,365 | 16,696 | 21,061 | 5,320 | 5,022 | 21,359 | 26,381 | 10,517 | 1968 | Dec-98 | |||||||||||||||||||||||||||||||||
Highlands Of Marin | — | 5,996 | 24,868 | 30,864 | 25,554 | 7,011 | 49,407 | 56,418 | 17,294 | 1991 | Dec-98 | |||||||||||||||||||||||||||||||||
Marina Playa | — | 6,224 | 23,916 | 30,140 | 7,660 | 6,764 | 31,036 | 37,800 | 14,791 | 1971 | Dec-98 | |||||||||||||||||||||||||||||||||
River Terrace | 33,130 | 22,161 | 40,137 | 62,298 | 2,221 | 22,265 | 42,254 | 64,519 | 15,981 | 2005 | Aug-05 | |||||||||||||||||||||||||||||||||
CitySouth | — | 14,031 | 30,537 | 44,568 | 30,689 | 15,672 | 59,585 | 75,257 | 13,826 | 1972 | Nov-05 | |||||||||||||||||||||||||||||||||
Bay Terrace | — | 8,545 | 14,458 | 23,003 | 2,543 | 8,549 | 16,997 | 25,546 | 5,827 | 1962 | Oct-05 | |||||||||||||||||||||||||||||||||
Highlands of Marin Phase II | — | 5,353 | 18,559 | 23,912 | 10,976 | 5,730 | 29,158 | 34,888 | 6,801 | 1968 | Oct-07 | |||||||||||||||||||||||||||||||||
Edgewater | 45,106 | 30,657 | 83,872 | 114,529 | 1,760 | 30,668 | 85,621 | 116,289 | 18,845 | 2007 | Mar-08 | |||||||||||||||||||||||||||||||||
Almaden Lake Village | 27,000 | 594 | 42,515 | 43,109 | 2,459 | 655 | 44,913 | 45,568 | 9,339 | 1999 | Jul-08 | |||||||||||||||||||||||||||||||||
SAN FRANCISCO, CA | 105,236 | 107,787 | 340,136 | 447,923 | 96,030 | 112,514 | 431,439 | 543,953 | 132,869 | |||||||||||||||||||||||||||||||||||
Rosebeach | — | 8,414 | 17,449 | 25,863 | 1,889 | 8,462 | 19,290 | 27,752 | 8,526 | 1970 | Sep-04 | |||||||||||||||||||||||||||||||||
Ocean Villas | 8,663 | 5,135 | 12,789 | 17,924 | 1,351 | 5,205 | 14,070 | 19,275 | 5,895 | 1965 | Oct-04 | |||||||||||||||||||||||||||||||||
Tierra Del Rey | — | 39,586 | 36,679 | 76,265 | 1,811 | 39,592 | 38,484 | 78,076 | 9,369 | 1999 | Dec-07 | |||||||||||||||||||||||||||||||||
LOS ANGELES, CA | 8,663 | 53,135 | 66,917 | 120,052 | 5,051 | 53,259 | 71,844 | 125,103 | 23,790 | |||||||||||||||||||||||||||||||||||
Crowne Pointe | 7,328 | 2,486 | 6,437 | 8,923 | 4,252 | 2,773 | 10,402 | 13,175 | 5,536 | 1987 | Dec-98 | |||||||||||||||||||||||||||||||||
Hilltop | 6,774 | 2,174 | 7,408 | 9,582 | 3,164 | 2,641 | 10,105 | 12,746 | 5,052 | 1985 | Dec-98 | |||||||||||||||||||||||||||||||||
The Kennedy | 17,942 | 6,179 | 22,307 | 28,486 | 1,098 | 6,212 | 23,372 | 29,584 | 8,430 | 2005 | Nov-05 | |||||||||||||||||||||||||||||||||
Hearthstone at Merrill Creek | — | 6,848 | 30,922 | 37,770 | 1,706 | 6,860 | 32,616 | 39,476 | 7,132 | 2000 | May-08 | |||||||||||||||||||||||||||||||||
Island Square | — | 21,284 | 89,389 | 110,673 | 2,443 | 21,354 | 91,762 | 113,116 | 18,374 | 2007 | Jul-08 | |||||||||||||||||||||||||||||||||
SEATTLE, WA | 32,044 | 38,971 | 156,463 | 195,434 | 12,663 | 39,840 | 168,257 | 208,097 | 44,524 | |||||||||||||||||||||||||||||||||||
Presidio at Rancho Del Oro | — | 9,164 | 22,694 | 31,858 | 5,073 | 9,600 | 27,331 | 36,931 | 13,176 | 1987 | Jun-04 | |||||||||||||||||||||||||||||||||
Villas at Carlsbad | — | 6,517 | 10,718 | 17,235 | 1,514 | 6,639 | 12,110 | 18,749 | 5,079 | 1966 | Oct-04 | |||||||||||||||||||||||||||||||||
SAN DIEGO, CA | — | 15,681 | 33,412 | 49,093 | 6,587 | 16,239 | 39,441 | 55,680 | 18,255 | |||||||||||||||||||||||||||||||||||
Boronda Manor | — | 1,946 | 8,982 | 10,928 | 8,396 | 3,112 | 16,212 | 19,324 | 6,662 | 1979 | Dec-98 | |||||||||||||||||||||||||||||||||
Garden Court | — | 888 | 4,188 | 5,076 | 4,385 | 1,455 | 8,006 | 9,461 | 3,393 | 1973 | Dec-98 | |||||||||||||||||||||||||||||||||
Cambridge Court | — | 3,039 | 12,883 | 15,922 | 13,073 | 5,160 | 23,835 | 28,995 | 10,269 | 1974 | Dec-98 | |||||||||||||||||||||||||||||||||
Laurel Tree | — | 1,304 | 5,115 | 6,419 | 5,335 | 2,075 | 9,679 | 11,754 | 4,115 | 1977 | Dec-98 | |||||||||||||||||||||||||||||||||
The Pointe At Harden Ranch | — | 6,388 | 23,854 | 30,242 | 23,263 | 9,731 | 43,774 | 53,505 | 18,246 | 1986 | Dec-98 | |||||||||||||||||||||||||||||||||
The Pointe At Northridge | — | 2,044 | 8,028 | 10,072 | 9,098 | 3,204 | 15,966 | 19,170 | 6,985 | 1979 | Dec-98 | |||||||||||||||||||||||||||||||||
The Pointe At Westlake | — | 1,329 | 5,334 | 6,663 | 5,159 | 2,109 | 9,713 | 11,822 | 3,984 | 1975 | Dec-98 | |||||||||||||||||||||||||||||||||
MONTEREY PENINSULA, CA | — | 16,938 | 68,384 | 85,322 | 68,709 | 26,846 | 127,185 | 154,031 | 53,654 | |||||||||||||||||||||||||||||||||||
Verano at Rancho Cucamonga Town Square | 54,308 | 13,557 | 3,645 | 17,202 | 52,382 | 22,918 | 46,666 | 69,584 | 21,842 | 2006 | Oct-02 | |||||||||||||||||||||||||||||||||
INLAND EMPIRE, CA | 54,308 | 13,557 | 3,645 | 17,202 | 52,382 | 22,918 | 46,666 | 69,584 | 21,842 | |||||||||||||||||||||||||||||||||||
Foothills Tennis Village | — | 3,618 | 14,542 | 18,160 | 5,824 | 3,987 | 19,997 | 23,984 | 10,432 | 1988 | Dec-98 | |||||||||||||||||||||||||||||||||
Woodlake Village | — | 6,772 | 26,967 | 33,739 | 11,335 | 7,832 | 37,242 | 45,074 | 20,299 | 1979 | Dec-98 | |||||||||||||||||||||||||||||||||
SACRAMENTO, CA | — | 10,390 | 41,509 | 51,899 | 17,159 | 11,819 | 57,239 | 69,058 | 30,731 | |||||||||||||||||||||||||||||||||||
Tualatin Heights | 8,976 | 3,273 | 9,134 | 12,407 | 5,655 | 3,707 | 14,355 | 18,062 | 7,736 | 1989 | Dec-98 | |||||||||||||||||||||||||||||||||
Andover Park | 15,938 | 2,916 | 16,995 | 19,911 | 6,676 | 3,105 | 23,482 | 26,587 | 11,570 | 1989 | Sep-04 | |||||||||||||||||||||||||||||||||
Hunt Club | 17,020 | 6,014 | 14,870 | 20,884 | 4,850 | 6,295 | 19,439 | 25,734 | 9,810 | 1985 | Sep-04 | |||||||||||||||||||||||||||||||||
PORTLAND, OR | 41,934 | 12,203 | 40,999 | 53,202 | 17,181 | 13,107 | 57,276 | 70,383 | 29,116 | |||||||||||||||||||||||||||||||||||
TOTAL WESTERN REGION | 578,338 | 597,603 | 1,071,132 | 1,668,735 | 352,769 | 643,048 | 1,378,456 | 2,021,504 | 521,187 | |||||||||||||||||||||||||||||||||||
MID-ATLANTIC REGION | ||||||||||||||||||||||||||||||||||||||||||||
The Whitmore | — | 6,418 | 13,411 | 19,829 | 19,602 | 7,424 | 32,007 | 39,431 | 16,461 | 2008 | Apr-02 | |||||||||||||||||||||||||||||||||
Ridgewood | — | 5,612 | 20,086 | 25,698 | 7,214 | 5,836 | 27,076 | 32,912 | 16,168 | 1988 | Aug-02 | |||||||||||||||||||||||||||||||||
The Calvert | — | 263 | 11,189 | 11,452 | 20,825 | 8,275 | 24,002 | 32,277 | 9,209 | 1962 | Nov-03 | |||||||||||||||||||||||||||||||||
Wellington Place at Olde Town | 28,681 | 13,753 | 36,059 | 49,812 | 16,314 | 14,541 | 51,585 | 66,126 | 22,649 | 2008 | Sep-05 | |||||||||||||||||||||||||||||||||
Andover House | — | 14,357 | 51,577 | 65,934 | 2,449 | 14,360 | 54,023 | 68,383 | 15,087 | 2004 | Mar-07 | |||||||||||||||||||||||||||||||||
Sullivan Place | — | 1,137 | 103,676 | 104,813 | 3,015 | 1,181 | 106,647 | 107,828 | 25,509 | 2007 | Dec-07 | |||||||||||||||||||||||||||||||||
Circle Towers | 69,771 | 33,011 | 107,051 | 140,062 | 5,927 | 32,876 | 113,113 | 145,989 | 23,714 | 1972 | Mar-08 | |||||||||||||||||||||||||||||||||
Delancey at Shirlington | — | 21,606 | 66,765 | 88,371 | 966 | 21,616 | 67,721 | 89,337 | 14,696 | 2006/07 | Mar-08 | |||||||||||||||||||||||||||||||||
METROPOLITAN DC | 98,452 | 96,157 | 409,814 | 505,971 | 76,312 | 106,109 | 476,174 | 582,283 | 143,493 | |||||||||||||||||||||||||||||||||||
Lakeside Mill | 15,242 | 2,666 | 10,109 | 12,775 | 3,707 | 2,849 | 13,633 | 16,482 | 9,166 | 1989 | Dec-99 | |||||||||||||||||||||||||||||||||
Tamar Meadow | 17,602 | 4,145 | 17,150 | 21,295 | 4,381 | 4,502 | 21,174 | 25,676 | 12,142 | 1990 | Nov-02 | |||||||||||||||||||||||||||||||||
Calvert’s Walk | 18,043 | 4,408 | 24,692 | 29,100 | 5,833 | 4,567 | 30,366 | 34,933 | 14,602 | 1988 | Mar-04 | |||||||||||||||||||||||||||||||||
Liriope Apartments | — | 1,620 | 6,791 | 8,411 | 896 | 1,629 | 7,678 | 9,307 | 3,752 | 1997 | Mar-04 | |||||||||||||||||||||||||||||||||
20 Lambourne | 32,795 | 11,750 | 45,590 | 57,340 | 3,471 | 11,837 | 48,974 | 60,811 | 11,613 | 2003 | Mar-08 | |||||||||||||||||||||||||||||||||
BALTIMORE, MD | 83,682 | 24,589 | 104,332 | 128,921 | 18,288 | 25,384 | 121,825 | 147,209 | 51,275 | |||||||||||||||||||||||||||||||||||
Inwood West | 60,702 | 20,778 | 88,096 | 108,874 | 893 | 20,779 | 88,988 | 109,767 | 3,812 | 2006 | Apr-11 | |||||||||||||||||||||||||||||||||
14 North | — | 10,961 | 51,175 | 62,136 | 1,088 | 10,961 | 52,263 | 63,224 | 2,335 | 2005 | Apr-11 | |||||||||||||||||||||||||||||||||
BOSTON, MA | 60,702 | 31,739 | 139,271 | 171,010 | 1,981 | 31,740 | 141,251 | 172,991 | 6,147 | |||||||||||||||||||||||||||||||||||
10 Hanover Square | 205,526 | 41,432 | 218,983 | 260,415 | 2,085 | 41,432 | 221,068 | 262,500 | 8,945 | 2005 | Apr-11 | |||||||||||||||||||||||||||||||||
95 Wall Street | — | 57,637 | 266,255 | 323,892 | 137 | 57,641 | 266,388 | 324,029 | 5,738 | 2008 | Aug-11 | |||||||||||||||||||||||||||||||||
NEW YORK, NY | 205,526 | 99,069 | 485,238 | 584,307 | 2,222 | 99,073 | 487,456 | 586,529 | 14,683 | |||||||||||||||||||||||||||||||||||
TOTAL MID-ATLANTIC REGION | 448,362 | 251,554 | 1,138,655 | 1,390,209 | 98,803 | 262,306 | 1,226,706 | 1,489,012 | 215,598 | |||||||||||||||||||||||||||||||||||
154
Table of Contents
SCHEDULE III — REAL ESTATE OWNED — (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2011
(In thousands)
Cost of | ||||||||||||||||||||||||||||||||||||||||||||
Improvements | Gross Amount at Which | |||||||||||||||||||||||||||||||||||||||||||
Initial Costs | Total | Capitalized | Carried at Close of Period | |||||||||||||||||||||||||||||||||||||||||
Land and | Buildings | Initial | Subsequent | Land and | Buildings | Total | ||||||||||||||||||||||||||||||||||||||
Land | and | Acquisition | to Acquisition | Land | Buildings | Carrying | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||
Encumbrances | Improvements | Improvements | Costs | Costs | Improvements | Improvements | Value | Depreciation | Construction (a) | Acquired | ||||||||||||||||||||||||||||||||||
SOUTHEASTERN REGION | ||||||||||||||||||||||||||||||||||||||||||||
Sugar Mill Creek | — | 2,242 | 7,553 | 9,795 | 5,616 | 2,648 | 12,763 | 15,411 | 7,243 | 1988 | Dec-98 | |||||||||||||||||||||||||||||||||
Inlet Bay | — | 7,702 | 23,150 | 30,852 | 11,958 | 8,857 | 33,953 | 42,810 | 19,948 | 1988/89 | Jun-03 | |||||||||||||||||||||||||||||||||
MacAlpine Place | — | 10,869 | 36,858 | 47,727 | 5,070 | 11,091 | 41,706 | 52,797 | 18,542 | 2001 | Dec-04 | |||||||||||||||||||||||||||||||||
TAMPA, FL | — | 20,813 | 67,561 | 88,374 | 22,644 | 22,596 | 88,422 | 111,018 | 45,733 | |||||||||||||||||||||||||||||||||||
Legacy Hill | — | 1,148 | 5,867 | 7,015 | 7,841 | 1,692 | 13,164 | 14,856 | 9,357 | 1977 | Nov-95 | |||||||||||||||||||||||||||||||||
Hickory Run | — | 1,469 | 11,584 | 13,053 | 8,458 | 1,989 | 19,522 | 21,511 | 11,013 | 1989 | Dec-95 | |||||||||||||||||||||||||||||||||
Carrington Hills | — | 2,117 | — | 2,117 | 32,205 | 4,278 | 30,044 | 34,322 | 16,264 | 1999 | Dec-95 | |||||||||||||||||||||||||||||||||
Brookridge | — | 708 | 5,461 | 6,169 | 3,844 | 1,007 | 9,006 | 10,013 | 5,588 | 1986 | Mar-96 | |||||||||||||||||||||||||||||||||
Breckenridge | — | 766 | 7,714 | 8,480 | 3,688 | 1,157 | 11,011 | 12,168 | 6,299 | 1986 | Mar-97 | |||||||||||||||||||||||||||||||||
Polo Park | — | 4,583 | 16,293 | 20,876 | 15,090 | 5,491 | 30,475 | 35,966 | 14,135 | 2008 | May-06 | |||||||||||||||||||||||||||||||||
NASHVILLE, TN | — | 10,791 | 46,919 | 57,710 | 71,126 | 15,614 | 113,222 | 128,836 | 62,656 | |||||||||||||||||||||||||||||||||||
St Johns Plantation | — | 4,288 | 33,102 | 37,390 | 5,302 | 4,542 | 38,150 | 42,692 | 16,538 | 2006 | Jun-05 | |||||||||||||||||||||||||||||||||
JACKSONVILLE, FL | — | 4,288 | 33,102 | 37,390 | 5,302 | 4,542 | 38,150 | 42,692 | 16,538 | |||||||||||||||||||||||||||||||||||
The Reserve and Park at Riverbridge | 40,133 | 15,968 | 56,401 | 72,369 | 5,130 | 16,282 | 61,217 | 77,499 | 26,261 | 1999/2001 | Dec-04 | |||||||||||||||||||||||||||||||||
OTHER FLORIDA | 40,133 | 15,968 | 56,401 | 72,369 | 5,130 | 16,282 | 61,217 | 77,499 | 26,261 | |||||||||||||||||||||||||||||||||||
TOTAL SOUTHEASTERN REGION | 40,133 | 51,860 | 203,983 | 255,843 | 104,202 | 59,034 | 301,011 | 360,045 | 151,188 | |||||||||||||||||||||||||||||||||||
SOUTHWESTERN REGION | ||||||||||||||||||||||||||||||||||||||||||||
THIRTY377 | 31,816 | 24,036 | 32,951 | 56,987 | 6,117 | 24,229 | 38,875 | 63,104 | 13,838 | 2007 | Aug-06 | |||||||||||||||||||||||||||||||||
Legacy Village | 59,300 | 16,882 | 100,102 | 116,984 | 4,071 | 17,029 | 104,026 | 121,055 | 24,322 | 2005/06/07 | Mar-08 | |||||||||||||||||||||||||||||||||
DALLAS, TX | 91,116 | 40,918 | 133,053 | 173,971 | 10,188 | 41,258 | 142,901 | 184,159 | 38,160 | |||||||||||||||||||||||||||||||||||
Finisterra | — | 1,274 | 26,392 | 27,666 | 4,351 | 1,735 | 30,282 | 32,017 | 13,999 | 1997 | Mar-98 | |||||||||||||||||||||||||||||||||
Sierra Foothills | 20,978 | 2,728 | — | 2,728 | 21,204 | 5,102 | 18,830 | 23,932 | 12,968 | 1998 | Feb-98 | |||||||||||||||||||||||||||||||||
Sierra Canyon | 10,717 | 1,810 | 12,964 | 14,774 | 2,197 | 2,071 | 14,900 | 16,971 | 9,381 | 2001 | Dec-01 | |||||||||||||||||||||||||||||||||
PHOENIX, AZ | 31,695 | 5,812 | 39,356 | 45,168 | 27,752 | 8,908 | 64,012 | 72,920 | 36,348 | |||||||||||||||||||||||||||||||||||
Barton Creek Landing | — | 3,151 | 14,269 | 17,420 | 20,208 | 4,414 | 33,214 | 37,628 | 12,086 | 1986 | Mar-02 | |||||||||||||||||||||||||||||||||
AUSTIN, TX | — | 3,151 | 14,269 | 17,420 | 20,208 | 4,414 | 33,214 | 37,628 | 12,086 | |||||||||||||||||||||||||||||||||||
TOTAL SOUTHWESTERN REGION | 122,811 | 49,881 | 186,678 | 236,559 | 58,148 | 54,580 | 240,127 | 294,707 | 86,594 | |||||||||||||||||||||||||||||||||||
REAL ESTATE UNDER DEVELOPMENT | ||||||||||||||||||||||||||||||||||||||||||||
UDR Pacific Los Alisos, LP | — | 17,298 | — | 17,298 | 9,496 | 16,385 | 10,409 | 26,794 | — | |||||||||||||||||||||||||||||||||||
TOTAL REAL ESTATE UNDER DEVELOPMENT | — | 17,298 | — | 17,298 | 9,496 | 16,385 | 10,409 | 26,794 | — | |||||||||||||||||||||||||||||||||||
LAND | ||||||||||||||||||||||||||||||||||||||||||||
Presidio | — | 1,524 | — | 1,524 | 921 | 1,300 | 1,145 | 2,445 | — | |||||||||||||||||||||||||||||||||||
TOTAL LAND | — | 1,524 | — | 1,524 | 921 | 1,300 | 1,145 | 2,445 | — | |||||||||||||||||||||||||||||||||||
TOTAL REAL ESTATE UNDER DEVELOPMENT | — | 18,822 | — | 18,822 | 10,417 | 17,685 | 11,554 | 29,239 | — | |||||||||||||||||||||||||||||||||||
TOTAL COMMERCIAL | — | 1,441 | 6,096 | 7,537 | 2,449 | 2,552 | 7,434 | 9,986 | 1,791 | |||||||||||||||||||||||||||||||||||
Other (b) | — | — | — | — | 804 | 6 | 799 | 805 | — | |||||||||||||||||||||||||||||||||||
TOTAL CORPORATE | — | — | — | — | 804 | 6 | 799 | 805 | — | |||||||||||||||||||||||||||||||||||
TOTAL COMMERCIAL & CORPORATE | — | 1,441 | 6,096 | 7,537 | 3,253 | 2,558 | 8,233 | 10,791 | 1,791 | |||||||||||||||||||||||||||||||||||
Total Real Estate Owned | $ | 1,189,644 | $ | 971,161 | $ | 2,606,544 | $ | 3,577,705 | $ | 627,592 | $ | 1,039,211 | $ | 3,166,087 | $ | 4,205,298 | $ | 976,358 | ||||||||||||||||||||||||||
(a) | Date of construction or date of last major renovation. | |
(b) | Includes unallocated accruals and capital expenditures. | |
The aggregate cost for federal income tax purposes was approximately $2.3 billion at December 31, 2011. | ||
The depreciable life for all buildings is 35 years. |
155
Table of Contents
SCHEDULE III — REAL ESTATE OWNED — (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2011
2011 | 2010 | 2009 | ||||||||||
Balance at beginning of the year | $ | 3,706,184 | $ | 3,640,888 | $ | 3,569,239 | ||||||
Real estate acquired | 758,707 | — | — | |||||||||
Capital expenditures and development | 63,191 | 65,296 | 71,649 | |||||||||
Real estate sold | (322,784 | ) | — | — | ||||||||
Balance at end of year | $ | 4,205,298 | $ | 3,706,184 | $ | 3,640,888 | ||||||
2011 | 2010 | 2009 | ||||||||||
Balance at beginning of the year | $ | 884,083 | $ | 717,892 | $ | 552,369 | ||||||
Depreciation expense for the year | 181,085 | 166,191 | 165,757 | |||||||||
Accumulated depreciation on asset retirements | — | — | (234 | ) | ||||||||
Accumulated depreciation on sales | (88,810 | ) | — | — | ||||||||
Balance at end of year | $ | 976,358 | $ | 884,083 | $ | 717,892 | ||||||
156
Table of Contents
Exhibit | Description | Location | ||||
2.01 | Partnership Interest Purchase and Exchange Agreement dated as of September 10, 1998, by and between UDR, Inc., United Dominion Realty, L.P., American Apartment Communities Operating Partnership, L.P., AAC Management LLC, Schnitzer Investment Corp., Fox Point Ltd. and James D. Klingbeil including as an exhibit thereto the proposed form of the Third Amended and Restated Limited Partnership Agreement of United Dominion Realty, L.P. | Exhibit 2(d) to UDR, Inc.’s Form S-3 Registration Statement (Registration No. 333-64281) filed with the Commission on September 25, 1998. | ||||
2.02 | Agreement of Purchase and Sale dated as of August 13, 2004, by and between United Dominion Realty, L.P., a Delaware limited partnership, as Buyer, and Essex The Crest, L.P., a California limited partnership, Essex El Encanto Apartments, L.P., a California limited partnership, Essex Hunt Club Apartments, L.P., a California limited partnership, and the other signatories named as Sellers therein. | Exhibit 2.1 to UDR, Inc.’s Current Report on Form 8-K dated September 28, 2004 and filed with the Commission on September 29, 2004. | ||||
2.03 | First Amendment to Agreement of Purchase and Sale dated as of September 29, 2004, by and between United Dominion Realty, L.P., a Delaware limited partnership, as Buyer, and Essex The Crest, L.P., a California limited partnership, Essex El Encanto Apartments, L.P., a California limited partnership, Essex Hunt Club Apartments, L.P., a California limited partnership, and the other signatories named as Sellers therein. | Exhibit 2.2 to UDR, Inc.’s Current Report on Form 8-K dated September 29, 2004 and filed with the Commission on October 5, 2004. |
157
Table of Contents
Exhibit | Description | Location | ||||
2.04 | Second Amendment to Agreement of Purchase and Sale dated as of October 26, 2004, by and between United Dominion Realty, L.P., a Delaware limited partnership, as Buyer, and Essex The Crest, L.P., a California limited partnership, Essex El Encanto Apartments, L.P., a California limited partnership, Essex Hunt Club Apartments, L.P., a California limited partnership, and the other signatories named as Sellers therein. | Exhibit 2.3 to UDR, Inc.’s Current Report on Form 8-K/A dated September 29, 2004 and filed with the Commission on November 1, 2004. | ||||
2.05 | Agreement of Purchase and Sale dated as of January 23, 2008, by and between UDR, Inc., United Dominion Realty, L.P., UDR Texas Properties LLC, UDR Western Residential, Inc., UDR South Carolina Trust, UDR Ohio Properties, LLC, UDR of Tennessee, L.P., UDR of NC, Limited Partnership, Heritage Communities L.P., Governour’s Square of Columbus Co., Fountainhead Apartments Limited Partnership, AAC Vancouver I, L.P., AAC Funding Partnership III, AAC Funding Partnership II and DRA Fund VI LLC. | Exhibit 2.1 to UDR, Inc.’s Current Report on Form 8-K dated January 23, 2008 and filed with the Commission on January 29, 2008. | ||||
2.06 | First Amendment to Agreement of Purchase and Sale dated as of February 14, 2008, by and between UDR, Inc., United Dominion Realty, L.P., UDR Texas Properties LLC, UDR Western Residential, Inc., UDR South Carolina Trust, UDR Ohio Properties, LLC, UDR of Tennessee, L.P., UDR of NC, Limited Partnership, Heritage Communities L.P., Governour’s Square of Columbus Co., Fountainhead Apartments Limited Partnership, AAC Vancouver I, L.P., AAC Funding Partnership III, AAC Funding Partnership II and DRA Fund VI LLC. | Exhibit 2.2 to UDR, Inc.’s Current Report on Form 8-K/A dated March 3, 2008 and filed with the Commission on May 2, 2008. | ||||
3.01 | Articles of Restatement of UDR, Inc. | Exhibit 3.09 to UDR, Inc.’s Current Report on Form 8-K dated July 27, 2005 and filed with the Commission on August 1, 2005. | ||||
3.02 | Articles of Amendment to the Articles of Restatement of UDR, Inc. dated and filed with the State Department of Assessments and Taxation of the State of Maryland on March 14, 2007. | Exhibit 3.2 to UDR, Inc.’s Current Report on Form 8-K dated March 14, 2007 and filed with the Commission on March 15, 2007. |
158
Table of Contents
Exhibit | Description | Location | ||||
3.03 | Articles of Amendment to the Articles of Restatement of UDR, Inc. dated and filed with the State Department of Assessments and Taxation of the State of Maryland on August 30, 2011. | Exhibit 3.1 to UDR, Inc.’s Current Report on Form 8-K dated and filed with the Commission on September 1, 2011. | ||||
3.04 | Articles Supplementary relating to UDR, Inc.’s 6.75% Series G Cumulative Redeemable Preferred Stock dated and filed with the State Department of Assessments and Taxation of the State of Maryland on May 30, 2007. | Exhibit 3.4 to UDR, Inc.’s Form 8-A Registration Statement dated and filed with the Commission on May 30, 2007. | ||||
3.05 | Amended and Restated Bylaws of UDR, Inc. (as amended through May 12, 2011). | Exhibit 3.1 to UDR, Inc.’s Current Report on Form 8-K dated May 12, 2011 and filed with the Commission on May 13, 2011. | ||||
3.06 | Certificate of Limited Partnership of United Dominion Realty, L.P. dated as of February 19, 2004. | Exhibit 3.4 to United Dominion Realty, L.P.’s Post-Effective Amendment No. 1 to Registration Statement on Form S-3 dated and filed with the Commission on October 15, 2010. | ||||
3.07 | Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated as of February 23, 2004. | Exhibit 10.23 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2003. | ||||
3.08 | First Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated as of June 24, 2005. | Exhibit 10.06 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2005. | ||||
3.09 | Second Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated as of February 23, 2006. | Exhibit 10.6 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006. | ||||
3.10 | Third Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated as of February 2, 2007. | Exhibit 99.1 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009. | ||||
3.11 | Fourth Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated as of December 27, 2007. | Exhibit 10.25 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2007. | ||||
3.12 | Fifth Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated as of March 7, 2008. | Exhibit 10.53 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2008. | ||||
3.13 | Sixth Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. dated as of December 9, 2008. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated December 9, 2008 and filed with the Commission on December 10, 2008. |
159
Table of Contents
Exhibit | Description | Location | ||||
3.14 | Seventh Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P., dated as of March 13, 2009. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated March 18, 2009 and filed with the Commission on March 19, 2009 | ||||
3.15 | Eighth Amendment to the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P., dated as of November 17, 2010. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated and filed with the Commission on November 18, 2010. | ||||
4.01 | Form of UDR, Inc. Common Stock Certificate. | Exhibit 4.1 to UDR, Inc.’s Current Report on Form 8-K dated March 14, 2007 and filed with the Commission on March 15, 2007. | ||||
4.02 | Senior Indenture dated as of November 1, 1995, by and between UDR, Inc. and First Union National Bank of Virginia, N.A., as trustee. | Exhibit 4(ii)(h)(1) to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 1996. | ||||
4.03 | Supplemental Indenture dated as of June 11, 2003, by and between UDR, Inc. and Wachovia Bank, National Association, as trustee. | Exhibit 4.03 to UDR, Inc.’s Current Report on Form 8-K dated June 17, 2004 and filed with the Commission on June 18, 2004. | ||||
4.04 | Subordinated Indenture dated as of August 1, 1994 by and between UDR, Inc. and Crestar Bank, as trustee. | Exhibit 4(i)(m) to UDR, Inc.’s Form S-3 Registration Statement (Registration No. 33-64725) filed with the Commission on November 15, 1995. | ||||
4.05 | Indenture dated as of October 12, 2006, by and between UDR, Inc. and U.S. Bank National Association, as trustee, relating to UDR, Inc.’s 3.625% Convertible Senior Notes due 2011, including the form of note. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated October 5, 2006 and filed with the Commission on October 12, 2006. | ||||
4.06 | Form UDR, Inc. of Senior Debt Security. | Exhibit 4(i)(n) to UDR, Inc.’s Form S-3 Registration Statement (Registration No. 33-64725) filed with the Commission on November 15, 1995. | ||||
4.07 | Form of UDR, Inc. Subordinated Debt Security. | Exhibit 4(i)(p) to UDR, Inc.’s Form S-3 Registration Statement (Registration No. 33-55159) filed with the Commission on August 19, 1994. | ||||
4.08 | Form of UDR, Inc. Fixed Rate Medium-Term Note, Series A. | Exhibit 4.01 to UDR, Inc.’s Current Report on Form 8-K dated March 20, 2007 and filed with the Commission on March 22, 2007. | ||||
4.09 | Form of UDR, Inc. Floating Rate Medium-Term Note, Series A. | Exhibit 4.02 to UDR, Inc.’s Current Report on Form 8-K dated March 20, 2007 and filed with the Commission on March 22, 2007. | ||||
4.10 | UDR, Inc. 6.50% Note due 2009, issued June 19, 2002. | Exhibit 4 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002. |
160
Table of Contents
Exhibit | Description | Location | ||||
4.11 | UDR, Inc. 5.13% Medium-Term Notes due January 2014, issued October 3, 2003, January 15, 2004 and March 18, 2004 | Exhibit 4.2 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003, and Exhibits 4.1 and 4.2 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004. | ||||
4.12 | UDR, Inc. 3.90% Medium-Term Note due March 2010, issued March 18, 2004. | Exhibit 4.3 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004. | ||||
4.13 | UDR, Inc. 5.00% Medium-Term Note due January 2012, issued October 7, 2004. | Exhibit 4.19 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2004. | ||||
4.14 | UDR, Inc. 5.25% Medium-Term Note due January 2015, issued November 1, 2004. | Exhibit 4.21 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2004. | ||||
4.15 | UDR, Inc. 5.25% Medium-Term Note due January 2015, issued February 14, 2005. | Exhibit 4.22 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2004. | ||||
4.16 | UDR, Inc. 5.25% Medium-Term Note due January 2015, issued March 8, 2005. | Exhibit 4.23 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2004. | ||||
4.17 | UDR, Inc. 5.25% Medium-Term Note due January 2015, issued May 3, 2005. | Exhibit 4.3 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005. | ||||
4.18 | UDR, Inc. 5.25% Medium-Term Note due January 2016, issued September 7, 2005. | Exhibit 4.1 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005. | ||||
4.19 | UDR, Inc. 6.05% Medium-Term Note due June 2013, issued June 7, 2006. | Exhibit 4.3 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006. | ||||
4.20 | UDR, Inc. 5.50% Medium-Term Note, Series A due April 2014, issued March 27, 2007. | Exhibit 4.5 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007. | ||||
4.21 | Form of UDR, Inc. Certificate for Shares of 6.75% Series G Cumulative Redeemable Preferred Stock. | Exhibit 4.1 to UDR, Inc.’s Form 8-A Registration Statement dated and filed with the Commission on May 30, 2007. | ||||
4.22 | Articles Supplementary relating to UDR, Inc.’s 6.75% Series G Cumulative Redeemable Preferred Stock dated and filed with the State Department of Assessments and Taxation of the State of Maryland on May 30, 2007. | Exhibit 3.4 to UDR, Inc.’s Form 8-A Registration Statement dated and filed with the Commission on May 30, 2007. | ||||
4.23 | Registration Rights Agreement dated as of October 12, 2006, by and between UDR, Inc. and the Initial Purchasers of UDR, Inc.’s 3.625% Convertible Senior Notes due 2011. | Exhibit 4.1 to UDR, Inc.’s Current Report on Form 8-K dated October 5, 2006 and filed with the Commission on October 12, 2006. | ||||
4.24 | Indenture dated as of April 1, 1994, by and between UDR, Inc. and Nationsbank of Virginia, N.A., as trustee. | Exhibit 4(ii)(f)(1) to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 1994. |
161
Table of Contents
Exhibit | Description | Location | ||||
4.25 | Supplemental Indenture dated as of August 20, 2009, by and between UDR, Inc. and U.S. Bank National Association, as trustee, to UDR, Inc.’s Indenture dated as of April 1, 1994. | Exhibit 4.1 to UDR, Inc.’s Current Report on Form 8-K dated August 20, 2009 and filed with the Commission on August 21, 2009. | ||||
4.26 | Guaranty of United Dominion Realty, L.P. with respect to UDR, Inc.’s Indenture dated as of November 1, 1995. | Exhibit 99.1 to UDR, Inc.’s Current Report on Form 8-K dated and filed with the Commission on September 30, 2010. | ||||
4.27 | Guaranty of United Dominion Realty, L.P. with respect to UDR, Inc.’s Indenture dated as of October 12, 2006. | Exhibit 99.2 to UDR, Inc.’s Current Report on Form 8-K dated and filed with the Commission on September 30, 2010. | ||||
4.28 | First Supplemental Indenture among UDR, Inc., United Dominion Realty, L.P. and U.S. Bank National Association, as Trustee, dated as of May 3, 2011, relating to UDR, Inc.’s Medium-Term Notes, Series A, due Nine Months or More from Date of Issue. | Exhibit 4.1 to UDR, Inc.’s Current Report on Form 8-K filed with the Commission on May 4, 2011. | ||||
10.01* | UDR, Inc. 1985 Stock Option Plan, as amended. | Exhibit 10(iv) to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 1998. | ||||
10.02* | UDR, Inc. 1991 Stock Purchase and Loan Plan. | Exhibit 10(viii) to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 1997. | ||||
10.03* | UDR, Inc. 1999 Long-Term Incentive Plan (as amended and restated May 13, 2009). | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated and filed with the Commission on May 13, 2009. | ||||
10.04* | Form of UDR, Inc. Restricted Stock Award Agreement under the 1999 Long-Term Incentive Plan. | Exhibit 99.6 to UDR, Inc.’s Current Report on Form 8-K dated December 31, 2004 and filed with the Commission on January 11, 2005. | ||||
10.05 | Description of UDR, Inc. Shareholder Value Plan. | Exhibit 10(x) to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 1999. | ||||
10.06* | Description of UDR, Inc. Executive Deferral Plan. | Exhibit 10(xi) to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 1999. | ||||
10.07* | Description of the UDR, Inc. New Out-Performance Program. | Exhibit 10.01 to UDR, Inc.’s Current Report on Form 8-K dated May 3, 2005 and filed with the Commission on May 9, 2005. | ||||
10.08* | Description of the UDR, Inc. Series E Out-Performance Program. | UDR, Inc.’s Definitive Proxy Statement dated March 26, 2007 and filed with the Commission on March 23, 2007. | ||||
10.09* | Description of the UDR, Inc. 2010-2012 Long-Term Incentive Program for Senior Executive Officers. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated February 26, 2010 and filed with the Commission on March 4, 2010. |
162
Table of Contents
Exhibit | Description | Location | ||||
10.10 | Second Amended and Restated Agreement of Limited Partnership of Heritage Communities L.P. | Exhibit 10.3 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003. | ||||
10.11 | First Amendment of Second Amended and Restated Agreement of Limited Partnership of Heritage Communities L.P. | Exhibit 10.4 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003. | ||||
10.12 | Second Amendment to Second Amended and Restated Agreement of Limited Partnership of Heritage Communities L.P. | Exhibit 10.5 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003. | ||||
10.13 | Third Amendment to Second Amended and Restated Agreement of Limited Partnership of Heritage Communities L.P. | Exhibit 10.2 to UDR, Inc.’s Current Report on Form 8-K dated December 9, 2008 and filed with the Commission on December 10, 2008. | ||||
10.14 | Credit Agreement dated as of August 14, 2001, by and between UDR, Inc. and certain subsidiaries and ARCS Commercial Mortgage Co., L.P., as Lender, as amended through October 5, 2006. | Exhibit 10.15 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2006. | ||||
10.15 | Credit Agreement dated as of December 12, 2001, by and between UDR, Inc. and certain subsidiaries and ARCS Commercial Mortgage Co., L.P., as Lender, as amended through September 29, 2006. | Exhibit 10.16 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2006. | ||||
10.16 | Amended and Restated Credit Agreement dated as of May 25, 2005, by and between UDR, Inc. and Wachovia Capital Markets, LLC and J.P. Morgan Securities Inc., as Joint Lead Arrangers and Joint Bookrunners, Wachovia Bank, National Association, as Administrative Agent, JPMorgan Chase Bank, N.A., as Syndication Agent, SunTrust Bank and Wells Fargo Bank, National Association, as Documentation Agents, Citicorp North America, Inc., KeyBank, N.A. and U.S. Bank National Association, as Managing Agents, and LaSalle Bank National Association, Mizuho Corporate Bank, Ltd., New York Branch and UFJ Bank Limited, New York Branch as Co-Agents, and each of the financial institutions initially signatory thereto and their assignees. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated May 25, 2005 and filed with the Commission on May 27, 2005. |
163
Table of Contents
Exhibit | Description | Location | ||||
10.17* | Employment Agreement dated as of December 8, 1998, by and between UDR, Inc. and Richard A. Giannotti, as amended. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated and filed with the Commission on December 23, 2008. | ||||
10.18* | Agreement dated as of November 7, 2005, by and between UDR, Inc. and Thomas W. Toomey, regarding corporate aircraft. | Exhibit 10.1 to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005. | ||||
10.19* | Form of UDR, Inc. Indemnification Agreement. | Exhibit 10.3 to UDR, Inc.’s Current Report on Form 8-K dated May 2, 2006 and filed with the Commission on May 8, 2006. | ||||
10.20* | Form of UDR, Inc. Notice of Performance Contingent Restricted Stock Award. | Exhibit 10.2 to UDR, Inc.’s Current Report on Form 8-K dated May 2, 2006 and filed with the Commission on May 8, 2006. | ||||
10.21* | UDR, Inc. Notice of Performance Contingent Restricted Stock Award, including Restricted Stock Award Agreement for 2,350 Shares for Mark M. Culwell, Jr. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated June 21, 2006 and filed with the Commission on June 23, 2006. | ||||
10.22* | UDR, Inc. Restricted Stock Award Agreement for 7,418 Shares for Mark M. Culwell, Jr. | Exhibit 10.2 to UDR, Inc.’s Current Report on Form 8-K dated June 21, 2006 and filed with the Commission on June 23, 2006. | ||||
10.23* | UDR, Inc. Restricted Stock Award Agreement for 37,092 Shares for Mark M. Culwell, Jr. | Exhibit 10.3 to UDR, Inc.’s Current Report on Form 8-K dated June 21, 2006 and filed with the Commission on June 23, 2006. | ||||
10.24 | Amended and Restated Master Credit Facility Agreement dated as of June 24, 2002 by and between UDR, Inc. and Green Park Financial Limited Partnership, as amended through February 14, 2007. | Exhibit 10.41 to UDR, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2006. | ||||
10.25 | Limited Liability Company Agreement of UDR Texas Ventures LLC, a Delaware limited liability company, dated as of November 5, 2007. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated November 5, 2007 and filed with the Commission on November 9, 2007. | ||||
10.26* | Summary of UDR, Inc. 2010 Non-Employee Director Compensation Program. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated January 8, 2010 and filed with the Commission on January 12, 2010. | ||||
10.27* | Form of UDR, Inc. Restricted Stock Award Agreement for awards outside of the 1999 Long-Term Incentive Plan. | Exhibit 99.3 to UDR, Inc.’s Current Report on Form 8-K dated March 19, 2007 and filed with the Commission on March 19, 2007. | ||||
10.28* | Letter Agreement dated as of February 18, 2008, by and between UDR, Inc. and Warren L. Troupe. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated February 22, 2008 and filed with the Commission on February 27, 2008. |
164
Table of Contents
Exhibit | Description | Location | ||||
10.29* | Indemnification Agreement dated as of March 3, 2008, by and between UDR, Inc. and Warren L. Troupe. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated February 22, 2008 and filed with the Commission on February 27, 2008. | ||||
10.30* | UDR, Inc. Amended 2008 Independent Director Compensation Program. | Exhibit 10.2 to UDR, Inc.’s Current Report on Form 8-K dated May 30, 2008 and filed with the Commission on June 2, 2008. | ||||
10.31* | Summary of UDR, Inc. 2009 Non-Employee Director Compensation. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated and filed with the Commission on January 7, 2009. | ||||
10.32 | Subordination Agreement dated as of April 16, 1998, by and between UDR, Inc. and United Dominion Realty, L.P. | Exhibit 10(vi)(a) to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 1998. | ||||
10.33 | Servicing and Purchase Agreement dated as of June 24, 1999, by and between UDR, Inc. and Crestar Bank including as an exhibit thereto the Note and Participation Agreement forms. | Exhibit 10(vii) to UDR, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 1999. | ||||
10.34 | Sales Agreement dated as of September 15, 2009, by and among UDR, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. Incorporated. | Exhibit 1.1 to UDR, Inc.’s Current Report on Form 8-K dated and filed with the Commission on September 15, 2009. | ||||
10.35* | Letter Agreement dated as of October 7, 2010, by and between UDR, Inc. and W. Mark Wallis. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated and filed with the Commission on October 12, 2010. | ||||
10.36 | Term Loan Agreement dated as of December 14, 2009, by and among UDR, Inc., Regions Capital Markets, PNC Capital Markets LLC, Regions Bank, PNC Bank, National Association, U.S. Bank National Association and the other signatories thereto. | Exhibit 99.1 to UDR, Inc.’s Current Report on Form 8-K dated December 14, 2009 and filed with the Commission on December 17, 2009. | ||||
10.37 | Second Amended and Restated Distribution Agreement among UDR, Inc., United Dominion Realty, L.P., as Guarantor, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. Incorporated and Wells Fargo Securities, LLC, as Agents, dated as of May 3, 2011, with respect to the issue and sale by UDR, Inc. of its Medium-Term Notes, Series A Due Nine Months or More From Date of Issue. | Exhibit 1.1 to UDR, Inc.’s Current Report on Form 8-K filed with the SEC on May 4, 2011. |
165
Table of Contents
Exhibit | Description | Location | ||||
10.38 | Underwriting Agreement among UDR, Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. Incorporated and Wells Fargo Securities, LLC, as Representatives of the several underwriters, dated July 13, 2011. | Exhibit 1.1 to UDR, Inc.’s Current Report on Form 8-K dated and filed with the Commission on July 13, 2011. | ||||
10.39 | ATM Equity OfferingSM Sales Agreement among UDR, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC, dated September 1, 2011. | Exhibit 1.1 to UDR, Inc.’s Current Report on Form 8-K dated and filed with the Commission on September 1, 2011. | ||||
10.40 | Third Amended and Restated Distribution Agreement among UDR, Inc., United Dominion Realty, L.P., as Guarantor, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. Incorporated and Wells Fargo Securities, LLC, as Agents, dated September 1, 2011, with respect to the issue and sale by UDR, Inc. of its Medium-Term Notes, Series A Due Nine Months or More From Date of Issue. | Exhibit 1.2 to UDR, Inc.’s Current Report on Form 8-K dated and filed with the Commission on September 1, 2011. | ||||
10.41 | Credit Agreement dated as of October 25, 2011 by and among UDR, Inc., as Borrower, The Financial Institutions party Hereto and Their Assignees under Section 12.5, as Lenders, Wells Fargo Bank, National Association, as Administrative Agent, Wells Fargo Securities, LLC and J.P. Morgan Securities LLC, as Joint Lead Arrangers and Joint Lead Bookrunners, JPMorgan Chase Bank, N.A., as Syndication Agent, and Bank of America, N.A., PNC Bank, National Association and US Bank National Association, as Documentation Agents. | Exhibit 10.1 to UDR, Inc.’s Current Report on Form 8-K dated and filed with the Commission on October 26, 2011. | ||||
10.42 | Aircraft Time Sharing Agreement dated as of December 15, 2011, by and between UDR, Inc. and Thomas W. Toomey. | Filed herewith. | ||||
10.43 | Aircraft Time Sharing Agreement dated as of December 15, 2011, by and between UDR, Inc. and Warren L. Troupe. | Filed herewith. | ||||
12.1 | Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends of UDR, Inc. | Filed herewith. | ||||
12.2 | Computation of Ratio of Earnings to Fixed Charges of United Dominion Realty, L.P. | Filed herewith. | ||||
21 | Subsidiaries of UDR, Inc. and United Dominion Realty, L.P. | Filed herewith. | ||||
23.1 | Consent of Independent Registered Public Accounting Firm for UDR, Inc. | Filed herewith. |
166
Table of Contents
Exhibit | Description | Location | ||||
23.2 | Consent of Independent Registered Public Accounting Firm for United Dominion Realty, L.P. | Filed herewith. | ||||
31.1 | Rule 13a-14(a) Certification of the Chief Executive Officer of UDR, Inc. | Filed herewith. | ||||
31.2 | Rule 13a-14(a) Certification of the Chief Financial Officer of UDR, Inc. | Filed herewith. | ||||
31.3 | Rule 13a-14(a) Certification of the Chief Executive Officer of United Dominion Realty, L.P. | Filed herewith. | ||||
31.4 | Rule 13a-14(a) Certification of the Chief Financial Officer of United Dominion Realty, L.P. | Filed herewith. | ||||
32.1 | Section 1350 Certification of the Chief Executive Officer of UDR, Inc. | Filed herewith. | ||||
32.2 | Section 1350 Certification of the Chief Financial Officer of UDR, Inc. | Filed herewith. | ||||
32.3 | Section 1350 Certification of the Chief Executive Officer of United Dominion Realty, L.P. | Filed herewith. | ||||
32.4 | Section 1350 Certification of the Chief Financial Officer of United Dominion Realty, L.P. | Filed herewith. | ||||
101 | XBRL (Extensible Business Reporting Language). The following materials from UDR, Inc.’s Annual Report on Form 10-K for the period ended December 31, 2011, formatted in XBRL: (i) consolidated balance sheets of UDR, Inc., (ii) consolidated statements of operations of UDR, Inc., (iii) consolidated statements of cash flows of UDR, Inc., (iv) consolidated statements of changes in equity of UDR, Inc., (v) notes to consolidated financial statements of UDR, Inc., (vi) consolidated balance sheets of United Dominion Realty, L.P., (vii) consolidated statements of operations of United Dominion Realty, L.P., (viii) consolidated statements of cash flows of United Dominion Realty, L.P., (ix) consolidated statements of changes in capital of United Dominion Realty, L.P., and (x) notes to consolidated financial statements of United Dominion Realty, L.P. | Filed herewith. |
167