We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
UDR Inc | NYSE:UDR | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.78 | -1.91% | 40.07 | 40.905 | 39.46 | 40.72 | 7,241,353 | 01:00:00 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
(Exact name of registrant as specified in its charter)
(State or other jurisdiction | (Commission | (I.R.S. Employer | ||
of incorporation) | File Number) | Identification No.) | ||
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (
Not Applicable
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On July 30, 2024, UDR, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2024. This press release is furnished as Exhibit 99.1 to this Report and refers to supplemental financial information that is available on the Company’s website and furnished as Exhibit 99.2 to this Report. This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Ex. No. |
| Description |
99.1 | ||
99.2 | ||
104 | Cover Page Interactive Data File – The cover page XBRL tags are embedded within the Inline XBRL document |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
UDR, Inc. | ||||
July 30, 2024 | By: | /s/ Joseph D. Fisher | ||
Joseph D. Fisher | ||||
President and Chief Financial Officer | ||||
(Principal Financial Officer) |
UDR ANNOUNCES SECOND QUARTER RESULTS
AND RAISES FULL-YEAR 2024 GUIDANCE RANGES
UDR, Inc. (the “Company”) (NYSE: UDR), announced today its second quarter 2024 results. Net Income, Funds from Operations (“FFO”), FFO as Adjusted (“FFOA”), and Adjusted FFO (“AFFO”) per diluted share for the quarter ended June 30, 2024 are detailed below.
Quarter Ended June 30 | ||||||
Metric | 2Q 2024 Actual | 2Q 2024 Guidance | 2Q 2023 Actual | $ Change vs. Prior Year Period | % Change vs. Prior Year Period | |
Net Income per diluted share | $0.08 | $0.13 to $0.15 | $1.05 | ($0.97) | (92%) | |
FFO per diluted share | $0.60 | $0.60 to $0.62 | $0.63 | ($0.03) | (5%) | |
FFOA per diluted share | $0.62 | $0.60 to $0.62 | $0.61 | $0.01 | 2% | |
AFFO per diluted share | $0.55 | $0.53 to $0.55 | $0.55 | $0.00 | 0% |
● | Same-Store (“SS”) results, with concessions reflected on a straight-line basis, for the second quarter 2024 versus the second quarter 2023 and the first quarter 2024 are summarized below. |
SS Growth / (Decline) | Year-Over-Year (“YOY”): 2Q 2024 vs. 2Q 2023 | Sequential: 2Q 2024 vs. 1Q 2024 |
Revenue | 2.5% | 0.6% |
Expense | 3.7% | (1.5%) |
Net Operating Income (“NOI”) | 2.0% | 1.6% |
● | During the second quarter, the Company completed the development of 101 N. Meridian, a $134.0 million, 330-home apartment community in Tampa, FL. |
● | Subsequent to quarter-end, the Company, |
o | Funded $25.9 million and is under contract to fund an additional $9.1 million as part of a preferred equity DCP portfolio investment at a 10.75 percent rate of return in four stabilized communities in Portland, OR as part of a recapitalization. |
o | Received a $17.2 million partial paydown of its preferred equity DCP investment in Vernon Boulevard, a 534-home apartment community recently developed in Queens, NY. |
o | Earned the distinction of being a 2024 National Top Workplaces winner in the Real Estate Industry. |
“Strong employment growth and relative affordability compared to other forms of housing translated into near-record-high absorption for the industry in the first half of the year, leading to results that met the high-end of our FFOA per share expectations,” said Tom Toomey, UDR’s Chairman and CEO. “Supported by more robust pricing power than anticipated, the strength of our operating platform, and an innovative culture that continues to generate value-creating initiatives, we are raising full-year 2024 FFOA per diluted share and same-store growth guidance expectations to reflect our strong positioning in the marketplace.”
1
Outlook(1)
As shown in the table below, the Company has established the following guidance ranges for the third quarter of 2024 and has updated its previously provided full-year 2024 Net Income per diluted share, FFO per diluted share, FFOA per diluted share, AFFO per diluted share, and Same-Store growth guidance ranges.
| 3Q 2024 Outlook | 2Q 2024 Actual | Updated Full-Year 2024 Outlook | Prior Full-Year 2024 Outlook | Full-Year 2024 Midpoint (Change) | |
Net Income per diluted share | $0.08 to $0.10 | $0.08 | $0.35 to $0.43 | $0.33 to $0.45 | $0.39 (unch) | |
FFO per diluted share | $0.60 to $0.62 | $0.60 | $2.38 to $2.46 | $2.36 to $2.48 | $2.42 (unch) | |
FFOA per diluted share | $0.61 to $0.63 | $0.62 | $2.42 to $2.50 | $2.38 to $2.50 | $2.46 (+$0.02) | |
AFFO per diluted share | $0.54 to $0.56 | $0.55 | $2.16 to $2.24 | $2.12 to $2.24 | $2.20 (+$0.02) | |
YOY Growth: concessions reflected on a straight-line basis: | ||||||
SS Revenue | N/A | 2.5% | 1.00% to 3.00% | 0.00% to 3.00% | 2.00% (+0.50%) | |
SS Expense | N/A | 3.7% | 4.00% to 6.00% | 4.25% to 6.25% | 5.00% (-0.25%) | |
SS NOI | N/A | 2.0% | (0.25)% to 1.75% | (1.75)% to 1.75% | 0.75% (+0.75%) |
(1) | Additional assumptions for the Company’s third quarter and full-year 2024 outlook can be found on Attachment 13 of the Company’s related quarterly Supplemental Financial Information (“Supplement”). A reconciliation of GAAP Net Income per share to FFO per share, FFOA per share, and AFFO per share can be found on Attachment 14(D) of the Company’s related quarterly Supplement. Non-GAAP financial measures and other terms, as used in this earnings release, are defined and further explained on Attachments 14(A) through 14(D), “Definitions and Reconciliations,” of the Company’s related quarterly Supplement. |
In the second quarter, total revenue increased by $10.8 million YOY, or 2.7 percent, to $415.3 million. This increase was primarily attributable to growth in revenue from Same-Store communities.
“Occupancy, effective new lease rate growth, resident retention, and other income growth all exceeded our second quarter expectations, leading to strong Same-Store revenue results,” said Mike Lacy, UDR’s Senior Vice President of Operations. “As we begin the third quarter, market rents are following a typical seasonal trajectory and have stabilized following sequential growth through mid-June. We remain optimistic on our forward growth prospects as concessions are stable, resident retention continues to improve, other income growth is robust in the high-single-digit range, and effective renewal lease rate growth for July and August has increased to the 4.5 percent to 5.0 percent range, helping to offset some seasonal slowing in effective new lease rate growth.”
Summary of First Quarter 2024, Second Quarter 2024, and July 2024 Residential Operating Trends (1)
| As of July 29, 2024 | ||
Same-Store Metric | 1Q 2024 as reported | 2Q 2024 as reported | Jul 2024 |
Weighted Average Physical Occupancy | 97.1% | 96.8% | 96.2% to 96.3% |
Effective Blended Lease Rate Growth(2) | 0.8% | 2.4% | 2.3% to 2.5% |
Effective New Lease Rate Growth | (2.5)% | 0.5% | (0.9)% to (0.6)% |
Effective Renewal Lease Rate Growth | 3.8% | 3.9% | 4.9% to 5.0% |
(1) | Metrics are as of July 29, 2024 for the Company’s Same-Store residential portfolio and are subject to change. |
(2) | The Company defines Effective Blended Lease Rate Growth as the combined proportional growth as a result of (a) Effective New Lease Rate Growth and (b) Effective Renewal Lease Rate Growth. Management considers Effective Blended Lease Rate Growth a useful metric for investors as it assesses combined proportional market-level new and in-place demand trends. Please refer to the “Definitions and Reconciliations” section of the Company’s related quarterly Supplement for additional details. |
2
In the tables below, the Company has presented YOY, sequential, and year-to-date (“YTD”) Same-Store results by region, with concessions accounted for on a straight-line basis.
Summary of Same-Store Results in the Second Quarter 2024 versus the Second Quarter 2023
Region | Revenue Growth / (Decline) | Expense Growth / (Decline) | NOI Growth / (Decline) | % of Same-Store Portfolio(1) | Physical Occupancy(2) | YOY Change in Occupancy |
West | 2.6% | 1.9% | 2.9% | 31.0% | 96.6% | 0.2% |
Mid-Atlantic | 3.8% | 3.5% | 4.0% | 20.6% | 97.1% | 0.2% |
Northeast | 3.8% | 5.1% | 3.2% | 18.5% | 97.2% | 0.1% |
Southeast | 0.8% | 1.8% | 0.4% | 14.1% | 96.6% | 0.3% |
Southwest | 0.2% | 5.6% | (2.8)% | 9.2% | 96.7% | 0.4% |
Other Markets | 1.9% | 8.1% | (0.5)% | 6.6% | 96.8% | 0.2% |
Total | 2.5% | 3.7% | 2.0% | 100.0% | 96.8% | 0.2% |
(1) | Based on 2Q 2024 Same-Store NOI. For definitions of terms, please refer to the “Definitions and Reconciliations” section of the Company’s related quarterly Supplement. |
(2) | Weighted average Same-Store physical occupancy for the quarter. |
Summary of Same-Store Results in the Second Quarter 2024 versus the First Quarter 2024
Region | Revenue Growth / (Decline) | Expense Growth / (Decline) | NOI Growth / (Decline) | % of Same-Store Portfolio(1) | Physical Occupancy(2) | Sequential Change in Occupancy |
West | 0.1% | (1.5)% | 0.7% | 31.0% | 96.6% | (0.5)% |
Mid-Atlantic | 0.8% | 0.6% | 0.9% | 20.6% | 97.1% | (0.2)% |
Northeast | 0.9% | (5.2)% | 4.4% | 18.5% | 97.2% | (0.1)% |
Southeast | 0.7% | (0.7)% | 1.4% | 14.1% | 96.6% | (0.3)% |
Southwest | 0.7% | 0.4% | 0.9% | 9.2% | 96.7% | 0.1% |
Other Markets | 0.9% | (0.6)% | 1.5% | 6.6% | 96.8% | (0.3)% |
Total | 0.6% | (1.5%) | 1.6% | 100.0% | 96.8% | (0.2)% |
(1) | Based on 2Q 2024 Same-Store NOI. For definitions of terms, please refer to the “Definitions and Reconciliations” section of the Company’s related quarterly Supplement. |
(2) | Weighted average Same-Store physical occupancy for the quarter. |
Summary of Same-Store Results for YTD 2024 versus YTD 2023
Region | Revenue Growth / (Decline) | Expense Growth / (Decline) | NOI Growth / (Decline) | % of Same-Store Portfolio(1) | Physical Occupancy(2) | YTD YOY Change in Occupancy |
West | 3.0% | 5.3% | 2.2% | 31.4% | 96.9% | 0.6% |
Mid-Atlantic | 4.1% | 6.1% | 3.2% | 20.9% | 97.2% | 0.4% |
Northeast | 3.9% | 7.8% | 2.0% | 18.4% | 97.3% | 0.2% |
Southeast | 1.5% | 2.8% | 0.9% | 14.2% | 96.7% | 0.5% |
Southwest | 0.2% | 1.5% | (0.6)% | 8.8% | 96.7% | 0.3% |
Other Markets | 2.2% | 9.9% | (0.6)% | 6.3% | 97.0% | 0.2% |
Total | 2.8% | 5.4% | 1.7% | 100.0% | 97.0% | 0.5% |
(1) | Based on YTD 2024 Same-Store NOI. For definitions of terms, please refer to the “Definitions and Reconciliations” section of the Company’s related quarterly Supplement. |
(2) | Weighted average Same-Store physical occupancy for YTD 2024. |
3
Development Activity
During the quarter, the Company completed the development of 101 N. Meridian, a $134.0 million, 330-home apartment community in Tampa, FL. At the end of the second quarter, the Company had no projects in its active development pipeline.
Developer Capital Program (“DCP”) Portfolio Activity
At the end of the second quarter, the Company had funded $483.8 million, or 99.8 percent, of its $484.7 million of DCP commitments. These investments carry a contractual weighted average 10.0 percent rate of return and have a weighted average remaining term of 2.4 years.
Subsequent to quarter-end, the Company,
● | Received a $17.2 million partial paydown of its preferred equity DCP investment in Vernon Boulevard, a 534-home apartment community recently developed in Queens, NY. In conjunction with the paydown, the Company’s remaining $50.0 million preferred equity investment will earn a contractual 11.0 percent rate of return, which was adjusted lower from a previous 13.0 percent rate of return to reflect the reduced risk in UDR’s investment. |
● | Funded $25.9 million and is under contract to fund an additional $9.1 million as part of a preferred equity DCP portfolio investment in four stabilized communities as part of a recapitalization, which is summarized below. |
Community / Type | Location (MSA) | Apartment Homes | Investment Type | Commitment ($ millions) | Last Dollar LTV(1) | Rate of Return |
Stabilized Portfolio / Recapitalization | Portland, OR | 818 | Preferred Equity | $35.0 | 75% | 10.75% |
Capital Markets and Balance Sheet Activity
The Company’s total indebtedness as of June 30, 2024 was $5.8 billion with only $290.3 million, or 5.4 percent of total consolidated debt, maturing through 2025, including principal amortization and excluding amounts on the Company’s commercial paper program and working capital credit facility. As of June 30, 2024, the Company had $946.2 million in liquidity through a combination of cash and undrawn capacity on its credit facilities. Please see Attachment 13 of the Company’s related quarterly Supplement for additional details on projected capital sources and uses.
In the table below, the Company has presented select balance sheet metrics for the quarter ended June 30, 2024 and the comparable prior year period.
| Quarter Ended June 30 | ||
Balance Sheet Metric | 2Q 2024 | 2Q 2023 | Change |
Weighted Average Interest Rate | 3.38% | 3.21% | 0.17% |
Weighted Average Years to Maturity(1) | 5.2 | 6.3 | (1.1) |
Consolidated Fixed Charge Coverage Ratio | 5.0x | 5.0x | 0.0x |
Consolidated Debt as a percentage of Total Assets | 32.7% | 31.9% | 0.8% |
Consolidated Net Debt-to-EBITDAre(2) | 5.7x | 5.5x | 0.2x |
(1) | If the Company’s commercial paper balance was refinanced using its line of credit, the weighted average years to maturity would have been 5.3 years with and without extensions for 2Q 2024 and 6.4 years with and without extensions for 2Q 2023. |
(2) | Defined as EBITDAre - adjusted for non-recurring items. A reconciliation of GAAP Net Income per share to EBITDAre - adjusted for non-recurring items and GAAP Total Debt to Net Debt can be found on Attachment 4(C) of the Company’s related quarterly Supplement. |
4
Corporate Responsibility
As previously announced, subsequent to quarter-end, the Company was named as a 2024 Top Workplaces winner in the Real Estate Industry. This distinction reflects the Company’s ongoing commitment to fostering an innovative culture and engaging associate experience.
Dividend
As previously announced, the Company’s Board of Directors declared a regular quarterly dividend on its common stock for the second quarter 2024 in the amount of $0.425 per share. The dividend will be paid in cash on July 31, 2024 to UDR common shareholders of record as of July 10, 2024. The second quarter 2024 dividend will represent the 207th consecutive quarterly dividend paid by the Company on its common stock.
Supplemental Financial Information
The Company offers Supplemental Financial Information that provides details on the financial position and operating results of the Company, which is available on the Investor Relations section of the Company's website at ir.udr.com.
Conference Call and Webcast Information
UDR will host a webcast and conference call at 12:00 p.m. Eastern Time on July 31, 2024, to discuss second quarter 2024 results as well as high-level views for 2024. The webcast will be available on the Investor Relations section of the Company’s website at ir.udr.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. To participate in the teleconference dial 877-423-9813 for domestic and 201-689-8573 for international. A passcode is not necessary.
Given a high volume of conference calls occurring during this time of year, delays are anticipated when connecting to the live call. As a result, stakeholders and interested parties are encouraged to utilize the Company’s webcast link for its earnings results discussion.
A replay of the conference call will be available through August 31, 2024, by dialing 844-512-2921 for domestic and 412-317-6671 for international and entering the confirmation number, 13747589, when prompted for the passcode. A replay of the call will also be available on the Investor Relations section of the Company’s website at ir.udr.com.
Full Text of the Earnings Report and Supplemental Data
The full text of the earnings report and related quarterly Supplement will be available on the Investor Relations section of the Company’s website at ir.udr.com.
Forward-Looking Statements
Certain statements made in this press release may constitute “forward-looking statements.” Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “outlook,” “guidance,” “estimates” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors, which include, but are not limited to, general market and economic conditions, unfavorable changes in the apartment market and economic conditions that could adversely affect occupancy levels and rental rates, the impact of inflation/deflation on rental rates and property operating expenses, the availability of capital and the stability of the capital markets, rising interest rates, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule or at expected rent and occupancy levels, changes in job growth, home affordability and demand/supply ratio for multifamily housing, development and construction risks that may impact profitability, risks that joint ventures with third parties and DCP investments do not perform as expected, the failure of automation or technology to help grow net operating income, and other risk factors discussed in documents filed by the Company with the SEC from time to time, including the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking statements. These forward-looking statements and such risks, uncertainties and other
5
factors speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the U.S. securities laws.
About UDR, Inc.
UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of June 30, 2024, UDR owned or had an ownership position in 60,126 apartment homes. For over 52 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.
6
Exhibit 99.2
Financial Highlights
UDR, Inc.
As of End of Second Quarter 2024
(Unaudited) (1)
| | | | Actual Results | | Actual Results | | Guidance for | ||
Dollars in thousands, except per share and unit | | | | 2Q 2024 | | YTD 2024 | | 3Q 2024 | | Full-Year 2024 |
| | | | | | | | | | |
GAAP Metrics | | | | | | | | | | |
Net income/(loss) attributable to UDR, Inc. | | | | $28,883 | | $72,032 | | -- | | -- |
Net income/(loss) attributable to common stockholders | | | | $27,673 | | $69,591 | | -- | | -- |
Income/(loss) per weighted average common share, diluted | | | | $0.08 | | $0.21 | | $0.08 to $0.10 | | $0.35 to $0.43 |
| | | | | | | | | | |
Per Share Metrics | | | | | | | | | | |
FFO per common share and unit, diluted | | | | $0.60 | | $1.20 | | $0.60 to $0.62 | | $2.38 to $2.46 |
FFO as Adjusted per common share and unit, diluted | | | | $0.62 | | $1.23 | | $0.61 to $0.63 | | $2.42 to $2.50 |
Adjusted Funds from Operations ("AFFO") per common share and unit, diluted | | | | $0.55 | | $1.11 | | $0.54 to $0.56 | | $2.16 to $2.24 |
Dividend declared per share and unit | | | | $0.425 | | $0.850 | | $0.425 | | $1.70 (2) |
| | | | | | | | | | |
Same-Store Operating Metrics | | | | | | | | | | |
Revenue growth/(decline) (Straight-line basis) | | | | 2.5% | | 2.8% | | -- | | 1.00% to 3.00% |
Expense growth | | | | 3.7% | | 5.4% | | -- | | 4.00% to 6.00% |
NOI growth/(decline) (Straight-line basis) | | | | 2.0% | | 1.7% | | -- | | -0.25% to 1.75% |
Physical Occupancy | | | | 96.8% | | 97.0% | | -- | | -- |
| | | | | | | | | | |
| | | | | | | | | | |
Property Metrics | | | | Homes | | Communities | | % of Total NOI | | |
Same-Store | | | | 52,545 | | 157 | | 89.8% | | |
Stabilized, Non-Mature | | | | 2,739 | | 10 | | 3.3% | | |
Development | | | | 415 | | 2 | | 0.0% | | |
Non-Residential / Other | | | | N/A | | N/A | | 1.9% | | |
Joint Venture (3) | | | | 4,427 | | 18 | | 5.0% | | |
Total completed homes | | | | 60,126 | | 187 | | 100% | | |
Under Development | | | | - | | - | | - | | |
Total Quarter-end homes (3)(4) | | | | 60,126 | | 187 | | 100% | | |
| | | | | | | | | | |
| | | | | | | | | | |
Balance Sheet Metrics (adjusted for non-recurring items) | | | | 2Q 2024 | | 2Q 2023 | | | | |
Consolidated Interest Coverage Ratio | | | | 5.1x | | 5.2x | | | | |
Consolidated Fixed Charge Coverage Ratio | | | | 5.0x | | 5.0x | | | | |
Consolidated Debt as a percentage of Total Assets | | | | 32.7% | | 31.9% | | | | |
Consolidated Net Debt-to-EBITDAre | | | | 5.7x | | 5.5x | | | | |
| | | | | | | | | | |
(1) | See Attachment 14 for definitions, other terms and reconciliations. |
(2) | Annualized for 2024. |
(3) | Joint venture NOI is based on UDR's share. Homes and communities at 100%. |
(4) | Excludes 6,815 homes that are part of the Developer Capital Program as described in Attachment 10(B). |
1
Attachment 1
Consolidated Statements of Operations
(Unaudited) (1)
| | Three Months Ended | | Six Months Ended | ||||||||
| | June 30, | | June 30, | ||||||||
In thousands, except per share amounts | | 2024 |
| 2023 |
| 2024 |
| 2023 | ||||
| | | | | | | | | | | | |
REVENUES: | | | | | | | | | | | | |
Rental income (2) | | $ | 413,328 | | $ | 403,098 | | $ | 824,997 | | $ | 801,405 |
Joint venture management and other fees | | | 1,992 | | | 1,450 | | | 3,957 | | | 2,692 |
Total revenues | | | 415,320 | | | 404,548 | | | 828,954 | | | 804,097 |
| | | | | | | | | | | | |
OPERATING EXPENSES: | | | | | | | | | | | | |
Property operating and maintenance | | | 70,443 | | | 68,861 | | | 143,921 | | | 133,695 |
Real estate taxes and insurance | | | 58,884 | | | 57,516 | | | 117,679 | | | 115,486 |
Property management | | | 13,433 | | | 13,101 | | | 26,812 | | | 26,046 |
Other operating expenses | | | 7,593 | | | 4,259 | | | 14,421 | | | 7,291 |
Real estate depreciation and amortization | | | 170,488 | | | 168,925 | | | 340,346 | | | 338,225 |
General and administrative | | | 20,136 | | | 16,452 | | | 37,946 | | | 33,932 |
Casualty-related charges/(recoveries), net | | | 998 | | | 1,134 | | | 7,276 | | | 5,290 |
Other depreciation and amortization | | | 4,679 | | | 3,681 | | | 8,995 | | | 7,330 |
Total operating expenses | | | 346,654 | | | 333,929 | | | 697,396 | | | 667,295 |
| | | | | | | | | | | | |
Gain/(loss) on sale of real estate owned | | | - | | | 325,884 | | | 16,867 | | | 325,885 |
Operating income | | | 68,666 | | | 396,503 | | | 148,425 | | | 462,687 |
| | | | | | | | | | | | |
Income/(loss) from unconsolidated entities (2) | | | 4,046 | | | 9,697 | | | 13,131 | | | 19,404 |
Interest expense | | | (47,811) | | | (45,113) | | | (95,873) | | | (88,855) |
Interest income and other income/(expense), net | | | 6,498 | | | 10,447 | | | 12,363 | | | 11,457 |
| | | | | | | | | | | | |
Income/(loss) before income taxes | | | 31,399 | | | 371,534 | | | 78,046 | | | 404,693 |
Tax (provision)/benefit, net | | | (386) | | | (1,351) | | | (723) | | | (1,585) |
| | | | | | | | | | | | |
Net Income/(loss) | | | 31,013 | | | 370,183 | | | 77,323 | | | 403,108 |
Net (income)/loss attributable to redeemable noncontrolling interests in the OP and DownREIT Partnership | | | (2,013) | | | (22,630) | | | (5,162) | | | (24,583) |
Net (income)/loss attributable to noncontrolling interests | | | (117) | | | (8) | | | (129) | | | (16) |
| | | | | | | | | | | | |
Net income/(loss) attributable to UDR, Inc. | | | 28,883 | | | 347,545 | | | 72,032 | | | 378,509 |
Distributions to preferred stockholders - Series E (Convertible) | | | (1,210) | | | (1,222) | | | (2,441) | | | (2,405) |
| | | | | | | | | | | | |
Net income/(loss) attributable to common stockholders | | $ | 27,673 | | $ | 346,323 | | $ | 69,591 | | $ | 376,104 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Income/(loss) per weighted average common share - basic: | | | $0.08 | | | $1.05 | | | $0.21 | | | $1.14 |
Income/(loss) per weighted average common share - diluted: | | | $0.08 | | | $1.05 | | | $0.21 | | | $1.14 |
| | | | | | | | | | | | |
Common distributions declared per share | | | $0.425 | | | $0.42 | | | $0.850 | | | $0.84 |
| | | | | | | | | | | | |
Weighted average number of common shares outstanding - basic | | | 329,056 | | | 328,957 | | | 328,940 | | | 328,871 |
Weighted average number of common shares outstanding - diluted | | | 329,572 | | | 332,480 | | | 329,334 | | | 332,412 |
(1) | See Attachment 14 for definitions and other terms. |
(2) | As of June 30, 2024, UDR's residential accounts receivable balance, net of its reserve, was $6.2 million, including its share from unconsolidated joint ventures. The unreserved amount is based on probability of collection. |
2
Attachment 2
Funds From Operations
(Unaudited) (1)
| | Three Months Ended | | Six Months Ended | ||||||||
| | June 30, | | June 30, | ||||||||
In thousands, except per share and unit amounts | | 2024 |
| 2023 |
| | 2024 |
| 2023 | |||
| | | | | | | | | | | | |
Net income/(loss) attributable to common stockholders | | $ | 27,673 | | $ | 346,323 | | $ | 69,591 | | $ | 376,104 |
| | | | | | | | | | | | |
Real estate depreciation and amortization | | | 170,488 | | | 168,925 | | | 340,346 | | | 338,225 |
Noncontrolling interests | | | 2,130 | | | 22,638 | | | 5,291 | | | 24,599 |
Real estate depreciation and amortization on unconsolidated joint ventures | | | 14,228 | | | 8,695 | | | 28,382 | | | 16,180 |
Net (gain)/loss on the sale of depreciable real estate owned, net of tax | | | - | | | (324,769) | | | (16,867) | | | (324,770) |
Funds from operations ("FFO") attributable to common stockholders and unitholders, basic | | $ | 214,519 | | $ | 221,812 | | $ | 426,743 | | $ | 430,338 |
| | | | | | | | | | | | |
Distributions to preferred stockholders - Series E (Convertible) (2) | | | 1,210 | | | 1,222 | | | 2,441 | | | 2,405 |
| | | | | | | | | | | | |
FFO attributable to common stockholders and unitholders, diluted | | $ | 215,729 | | $ | 223,034 | | $ | 429,184 | | $ | 432,743 |
| | | | | | | | | | | | |
FFO per weighted average common share and unit, basic | | $ | 0.61 | | $ | 0.63 | | $ | 1.21 | | $ | 1.23 |
FFO per weighted average common share and unit, diluted | | $ | 0.60 | | $ | 0.63 | | $ | 1.20 | | $ | 1.22 |
| | | | | | | | | | | | |
Weighted average number of common shares and OP/DownREIT Units outstanding, basic | | | 353,380 | | | 350,207 | | | 353,311 | | | 350,157 |
Weighted average number of common shares, OP/DownREIT Units, and common stock | | | | | | | | | | | | |
equivalents outstanding, diluted | | | 356,747 | | | 353,730 | | | 356,584 | | | 353,698 |
| | | | | | | | | | | | |
Impact of adjustments to FFO: | | | | | | | | | | | | |
Variable upside participation on DCP, net | | $ | - | | $ | (204) | | $ | - | | $ | (204) |
Legal and other costs | | | 2,914 | | | - | | | 5,444 | | | (1,258) |
Realized and unrealized (gain)/loss on real estate technology investments, net of tax | | | 372 | | | (7,847) | | | (4,616) | | | (8,110) |
Severance costs | | | 1,111 | | | - | | | 1,532 | | | - |
Casualty-related charges/(recoveries) | | | 998 | | | 1,134 | | | 7,276 | | | 5,290 |
Total impact of adjustments to FFO | | $ | 5,395 | | $ | (6,917) | | $ | 9,636 | | $ | (4,282) |
| | | | | | | | | | | | |
FFO as Adjusted attributable to common stockholders and unitholders, diluted | | $ | 221,124 | | $ | 216,117 | | $ | 438,820 | | $ | 428,461 |
| | | | | | | | | | | | |
FFO as Adjusted per weighted average common share and unit, diluted | | $ | 0.62 | | $ | 0.61 | | $ | 1.23 | | $ | 1.21 |
| | | | | | | | | | | | |
Recurring capital expenditures, inclusive of unconsolidated joint ventures | | | (26,290) | | | (21,345) | | | (43,598) | | | (33,644) |
AFFO attributable to common stockholders and unitholders, diluted | | $ | 194,834 | | $ | 194,772 | | $ | 395,222 | | $ | 394,817 |
| | | | | | | | | | | | |
AFFO per weighted average common share and unit, diluted | | $ | 0.55 | | $ | 0.55 | | $ | 1.11 | | $ | 1.12 |
(1) | See Attachment 14 for definitions and other terms. |
(2) | Series E cumulative convertible preferred shares are dilutive for purposes of calculating FFO per share for the three and six months ended June 30, 2024 and June 30, 2023. Consequently, distributions to Series E cumulative convertible preferred stockholders are added to FFO and the weighted average number of Series E cumulative convertible preferred shares are included in the denominator when calculating FFO per common share and unit, diluted. |
3
Attachment 3
Consolidated Balance Sheets
(Unaudited) (1)
| | June 30, | | December 31, | ||
In thousands, except share and per share amounts | | 2024 | | 2023 | ||
| | | | | | |
ASSETS | | | | | | |
| | | | | | |
Real estate owned: | | | | | | |
Real estate held for investment | | $ | 16,070,591 | | $ | 15,757,456 |
Less: accumulated depreciation | | | (6,572,743) | | | (6,242,686) |
Real estate held for investment, net | | | 9,497,848 | | | 9,514,770 |
Real estate under development | | | | | | |
(net of accumulated depreciation of $0 and $184) | | | - | | | 160,220 |
Real estate held for disposition | | | | | | |
(net of accumulated depreciation of $0 and $24,960) | | | - | | | 81,039 |
Total real estate owned, net of accumulated depreciation | | | 9,497,848 | | | 9,756,029 |
| | | | | | |
Cash and cash equivalents | | | 2,770 | | | 2,922 |
Restricted cash | | | 31,616 | | | 31,944 |
Notes receivable, net | | | 241,842 | | | 228,825 |
Investment in and advances to unconsolidated joint ventures, net | | | 958,943 | | | 952,934 |
Operating lease right-of-use assets | | | 188,828 | | | 190,619 |
Other assets | | | 195,958 | | | 209,969 |
Total assets | | $ | 11,117,805 | | $ | 11,373,242 |
| | | | | | |
LIABILITIES AND EQUITY | | | | | | |
| | | | | | |
Liabilities: | | | | | | |
Secured debt | | $ | 1,235,748 | | $ | 1,277,713 |
Unsecured debt | | | 4,540,388 | | | 4,520,996 |
Operating lease liabilities | | | 184,076 | | | 185,836 |
Real estate taxes payable | | | 44,333 | | | 47,107 |
Accrued interest payable | | | 47,289 | | | 47,710 |
Security deposits and prepaid rent | | | 49,168 | | | 50,528 |
Distributions payable | | | 151,518 | | | 149,600 |
Accounts payable, accrued expenses, and other liabilities | | | 120,784 | | | 141,311 |
Total liabilities | | | 6,373,304 | | | 6,420,801 |
| | | | | | |
Redeemable noncontrolling interests in the OP and DownREIT Partnership | | | 1,021,782 | | | 961,087 |
| | | | | | |
Equity: | | | | | | |
Preferred stock, no par value; 50,000,000 shares authorized at June 30, 2024 and December 31, 2023: | | | | | | |
2,600,678 shares of 8.00% Series E Cumulative Convertible issued | | | | | | |
and outstanding (2,686,308 shares at December 31, 2023) | | | 43,192 | | | 44,614 |
11,647,322 shares of Series F outstanding (11,867,730 shares at December 31, 2023) | | | 1 | | | 1 |
Common stock, $0.01 par value; 450,000,000 shares authorized at June 30, 2024 and December 31, 2023: | | | | | | |
329,539,663 shares issued and outstanding (329,014,512 shares at December 31, 2023) | | | 3,295 | | | 3,290 |
Additional paid-in capital | | | 7,508,794 | | | 7,493,217 |
Distributions in excess of net income | | | (3,840,808) | | | (3,554,892) |
Accumulated other comprehensive income/(loss), net | | | 7,910 | | | 4,914 |
Total stockholders' equity | | | 3,722,384 | | | 3,991,144 |
Noncontrolling interests | | | 335 | | | 210 |
Total equity | | | 3,722,719 | | | 3,991,354 |
Total liabilities and equity | | $ | 11,117,805 | | $ | 11,373,242 |
| | | | | | |
(1) | See Attachment 14 for definitions and other terms. |
4
Attachment 4(A)
Selected Financial Information
(Unaudited) (1)
| | | | | | June 30, | | December 31, |
Common Stock and Equivalents | | | | | | 2024 | | 2023 |
| | | | | | | | |
Common shares | | | | | | 329,539,663 | | 329,014,512 |
Restricted unit and common stock equivalents | | | | | | 499,773 | | 81,382 |
Operating and DownREIT Partnership units | | | | | | 24,243,247 | | 24,428,223 |
Series E cumulative convertible preferred shares (2) | | | | | | 2,815,608 | | 2,908,323 |
Total common shares, OP/DownREIT units, and common stock equivalents | | | | | | 357,098,291 | | 356,432,440 |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Weighted Average Number of Shares Outstanding | | | | | | 2Q 2024 | | 2Q 2023 |
| | | | | | | | |
Weighted average number of common shares and OP/DownREIT units outstanding - basic | | | | | | 353,380,151 | | 350,206,803 |
Weighted average number of OP/DownREIT units outstanding | | | | | | (24,323,880) | | (21,250,182) |
Weighted average number of common shares outstanding - basic per the Consolidated Statements of Operations | | | | | | 329,056,271 | | 328,956,621 |
| | | | | | | | |
Weighted average number of common shares, OP/DownREIT units, and common stock equivalents outstanding - diluted | | | | | | 356,746,794 | | 353,729,594 |
Weighted average number of OP/DownREIT units outstanding | | | | | | (24,323,880) | | (21,250,182) |
Weighted average number of Series E cumulative convertible preferred shares outstanding | | | | | | (2,851,268) | | - |
Weighted average number of common shares outstanding - diluted per the Consolidated Statements of Operations | | | | | | 329,571,646 | | 332,479,412 |
| | | | | | | | |
| | | | | | | | |
| | | | | | Year-to-Date 2024 | | Year-to-Date 2023 |
| | | | | | | | |
Weighted average number of common shares and OP/DownREIT units outstanding - basic | | | | | | 353,310,595 | | 350,157,304 |
Weighted average number of OP/DownREIT units outstanding | | | | | | (24,370,882) | | (21,286,442) |
Weighted average number of common shares outstanding - basic per the Consolidated Statements of Operations | | | | | | 328,939,713 | | 328,870,862 |
| | | | | | | | |
Weighted average number of common shares, OP/DownREIT units, and common stock equivalents outstanding - diluted | | | | | | 356,584,329 | | 353,698,023 |
Weighted average number of OP/DownREIT units outstanding | | | | | | (24,370,882) | | (21,286,442) |
Weighted average number of Series E cumulative convertible preferred shares outstanding | | | | | | (2,879,795) | | - |
Weighted average number of common shares outstanding - diluted per the Consolidated Statements of Operations | | | | | | 329,333,652 | | 332,411,581 |
| | | | | | | | |
(1) | See Attachment 14 for definitions and other terms. |
(2) | At June 30, 2024 and December 31, 2023 there were 2,600,678 and 2,686,308 of Series E cumulative convertible preferred shares outstanding, which is equivalent to 2,815,608 and 2,908,323 shares of common stock if converted (after adjusting for the special dividend paid in 2008). |
5
Attachment 4(B)
Selected Financial Information
June 30, 2024
(Unaudited) (1)
| | | | | | | | | | | | | | Weighted | | Weighted |
| | | | | | | | | | | | | | Average | | Average Years |
Debt Structure, In thousands | | | | | | | | Balance | | | % of Total | | Interest Rate | | to Maturity (2) | |
| | | | | | | | | | | | | | | | |
Secured | | | Fixed | | | | | $ | 1,212,173 | | | 20.9% | | 3.48% | | 4.2 |
| | | Floating | | | | | | 27,000 | | | 0.5% | | 4.04% | | 7.7 |
| | | Combined | | | | | | 1,239,173 | | | 21.4% | | 3.49% | | 4.3 |
| | | | | | | | | | | | | | | | |
Unsecured | | | Fixed | | | | | | 4,028,144 | (3) | | 69.6% | | 3.01% | | 6.0 |
| | | Floating | | | | | | 519,057 | | | 9.0% | | 5.66% | | 0.5 |
| | | Combined | | | | | | 4,547,201 | | | 78.6% | | 3.31% | | 5.4 |
| | | | | | | | | | | | | | | | |
Total Debt | | | Fixed | | | | | | 5,240,317 | | | 90.5% | | 3.11% | | 5.6 |
| | | Floating | | | | | | 546,057 | | | 9.5% | | 5.58% | | 0.8 |
| | | Combined | | | | | | 5,786,374 | | | 100.0% | | 3.35% | | 5.2 |
| | | Total Non-Cash Adjustments (4) | | | | | | (10,238) | | | | | | | |
| | | Total per Balance Sheet | | | | | $ | 5,776,136 | | | | | 3.38% | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Debt Maturities, In thousands | | | | | | | | | | | | | | | | |
| | | | | | | | Revolving Credit | | | | | | | Weighted | |
| | | | | Unsecured | | Facilities & Comm. | | | | | | | Average | ||
| | Secured Debt (5) | | Debt | | Paper (2) (6) (7) | | Balance | | % of Total | | Interest Rate | ||||
| | | | | | | | | | | | | | | | |
2024 | | $ | 96,375 | | $ | 15,644 | | $ | 430,000 | | $ | 542,019 | | 9.4% | | 5.22% |
2025 | | | 178,323 | | | - | | | 1,557 | | | 179,880 | | 3.1% | | 3.71% |
2026 | | | 56,672 | | | 300,000 | | | - | | | 356,672 | | 6.2% | | 2.96% |
2027 | | | 6,939 | | | 650,000 | | | - | | | 656,939 | | 11.4% | | 3.78% |
2028 | | | 166,526 | | | 300,000 | | | - | | | 466,526 | | 8.1% | | 3.72% |
2029 | | | 315,811 | | | 300,000 | | | - | | | 615,811 | | 10.6% | | 3.93% |
2030 | | | 230,597 | | | 600,000 | | | - | | | 830,597 | | 14.3% | | 3.34% |
2031 | | | 160,930 | | | 600,000 | | | - | | | 760,930 | | 13.1% | | 2.92% |
2032 | | | 27,000 | | | 400,000 | | | - | | | 427,000 | | 7.4% | | 2.22% |
2033 | | | - | | | 650,000 | | | - | | | 650,000 | | 11.2% | | 1.99% |
Thereafter | | | - | | | 300,000 | | | - | | | 300,000 | | 5.2% | | 3.13% |
| | | 1,239,173 | | | 4,115,644 | | | 431,557 | | | 5,786,374 | | 100.0% | | 3.35% |
Total Non-Cash Adjustments (4) | | | (3,425) | | | (6,813) | | | - | | | (10,238) | | | | |
Total per Balance Sheet | | $ | 1,235,748 | | $ | 4,108,831 | | $ | 431,557 | | $ | 5,776,136 | | | | 3.38% |
(1) | See Attachment 14 for definitions and other terms. |
(2) | The 2024 maturity reflects the $430.0 million of principal outstanding at an interest rate of 5.54%, the equivalent of SOFR plus a spread of 20.0 basis points, on the Company’s unsecured commercial paper program as of June 30, 2024. Under the terms of the program the Company may issue up to a maximum aggregate amount outstanding of $700.0 million. If the commercial paper was refinanced using the line of credit, the weighted average years to maturity would be 5.3 years with and without extensions. |
(3) | Includes portions of our $350.0 million unsecured Term Loan due 2027 that have been swapped to fixed. The portions of the term loan that have been swapped to fixed are: 1) $87.5 million at a weighted average rate of 5.16% that expires July 2024 and 2) $175.0 million at a weighted average rate of 1.43% that expires July 2025. The portions that have not been swapped to fixed carry an interest rate of adjusted SOFR plus 83.0 basis points. |
(4) | Includes the unamortized balance of fair market value adjustments, premiums/discounts and deferred financing costs. |
(5) | Includes principal amortization, as applicable. |
(6) | There were no borrowings outstanding on our $1.3 billion line of credit at June 30, 2024. The facility has a maturity date of January 2026, plus two six-month extension options and currently carries an interest rate equal to adjusted SOFR plus 75.5 basis points. |
(7) | There was $1.6 million outstanding on our $75.0 million working capital credit facility at June 30, 2024. The facility has a maturity date of January 2025 plus a one-year extension option. The working capital credit facility currently carries an interest rate equal to adjusted SOFR plus 77.5 basis points. |
6
Attachment 4(C)
Selected Financial Information
(Dollars in Thousands)
(Unaudited) (1)
| | | | | | | | | | | | Quarter Ended | |
Coverage Ratios | | | | | | | | | | | | June 30, 2024 | |
Net income/(loss) | | | | | | | | | | | | $ | 31,013 |
Adjustments: | | | | | | | | | | | | | |
Interest expense, including debt extinguishment and other associated costs | | | | | | | | | | | | | 47,811 |
Real estate depreciation and amortization | | | | | | | | | | | | | 170,488 |
Other depreciation and amortization | | | | | | | | | | | | | 4,679 |
Tax provision/(benefit), net | | | | | | | | | | | | | 386 |
Adjustments to reflect the Company's share of EBITDAre of unconsolidated joint ventures | | | | | | | | | | | | | 18,694 |
EBITDAre | | | | | | | | | | | | $ | 273,071 |
| | | | | | | | | | | | | |
Casualty-related charges/(recoveries), net | | | | | | | | | | | | | 998 |
Legal and other costs | | | | | | | | | | | | | 2,914 |
Severance costs | | | | | | | | | | | | | 1,111 |
Realized and unrealized (gain)/loss on real estate technology investments | | | | | | | | | | | | | 183 |
(Income)/loss from unconsolidated entities | | | | | | | | | | | | | (4,046) |
Adjustments to reflect the Company's share of EBITDAre of unconsolidated joint ventures | | | | | | | | | | | | | (18,694) |
Management fee expense on unconsolidated joint ventures | | | | | | | | | | | | | (861) |
Consolidated EBITDAre - adjusted for non-recurring items | | | | | | | | | | | | $ | 254,676 |
| | | | | | | | | | | | | |
Annualized consolidated EBITDAre - adjusted for non-recurring items | | | | | | | | | | | | $ | 1,018,704 |
| | | | | | | | | | | | | |
Interest expense, including debt extinguishment and other associated costs | | | | | | | | | | | | | 47,811 |
Capitalized interest expense | | | | | | | | | | | | | 2,417 |
Total interest | | | | | | | | | | | | $ | 50,228 |
| | | | | | | | | | | | | |
Preferred dividends | | | | | | | | | | | | $ | 1,210 |
| | | | | | | | | | | | | |
Total debt | | | | | | | | | | | | $ | 5,776,136 |
Cash | | | | | | | | | | | | | (2,770) |
Net debt | | | | | | | | | | | | $ | 5,773,366 |
| | | | | | | | | | | | | |
Consolidated Interest Coverage Ratio - adjusted for non-recurring items | | | | | | | | | | | | | 5.1x |
| | | | | | | | | | | | | |
Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items | | | | | | | | | | | | | 5.0x |
| | | | | | | | | | | | | |
Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items | | | | | | | | | | | | | 5.7x |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Debt Covenant Overview | |||||||||||||
| | | | | | | | | | | | | |
Unsecured Line of Credit Covenants (2) | | | | | | | Required | | | Actual | | | Compliance |
| | | | | | | | | | | | | |
Maximum Leverage Ratio | | | | | | | ≤60.0% | | | 31.3% (2) | | | Yes |
Minimum Fixed Charge Coverage Ratio | | | | | | | ≥1.5x | | | 4.8x | | | Yes |
Maximum Secured Debt Ratio | | | | | | | ≤40.0% | | | 10.2% | | | Yes |
Minimum Unencumbered Pool Leverage Ratio | | | | | | | ≥150.0% | | | 381.9% | | | Yes |
| | | | | | | | | | | | | |
Senior Unsecured Note Covenants (3) | | | | | | | Required | | | Actual | | | Compliance |
| | | | | | | | | | | | | |
Debt as a percentage of Total Assets | | | | | | | ≤65.0% | | | 32.7% (3) | | | Yes |
Consolidated Income Available for Debt Service to Annual Service Charge | | | | | | | ≥1.5x | | | 5.5x | | | Yes |
Secured Debt as a percentage of Total Assets | | | | | | | ≤40.0% | | | 7.0% | | | Yes |
Total Unencumbered Assets to Unsecured Debt | | | | | | | ≥150.0% | | | 320.2% | | | Yes |
| | | | | | | | | | | | | |
Securities Ratings | | | | | | | Debt | | | Outlook | | | Commercial Paper |
| | | | | | | | | | | | | |
Moody's Investors Service | | | | | | | Baa1 | | | Stable | | | P-2 |
S&P Global Ratings | | | | | | | BBB+ | | | Stable | | | A-2 |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | Gross | | | % of |
| | Number of | | 2Q 2024 NOI (1) | | | | | Carrying Value | | | Total Gross | |
Asset Summary | | Homes | | ($000s) | | % of NOI | | | ($000s) | | | Carrying Value | |
| | | | | | | | | | | | | |
Unencumbered assets | | 46,421 | | $ | 245,245 | | 86.4% | | $ | 13,907,962 | | | 86.5% |
Encumbered assets | | 9,278 | | | 38,756 | | 13.6% | | | 2,162,629 | | | 13.5% |
| | 55,699 | | $ | 284,001 | | 100.0% | | $ | 16,070,591 | | | 100.0% |
| | | | | | | | | | | | | |
(1) | See Attachment 14 for definitions and other terms. |
(2) | As defined in our credit agreement dated September 15, 2021, as amended. |
(3) | As defined in our indenture dated November 1, 1995 as amended, supplemented or modified from time to time. |
7
Attachment 5
Operating Information
(Unaudited) (1)
| | Total | | Quarter Ended | | Quarter Ended | | Quarter Ended | | Quarter Ended | | Quarter Ended | |||||
Dollars in thousands | | Homes | | June 30, 2024 | | March 31, 2024 | | December 31, 2023 | | September 30, 2023 | | June 30, 2023 | |||||
Revenues | | | | | | | | | | | | | | | | | |
Same-Store Communities | | 52,545 | | $ | 388,162 | | $ | 385,790 | | $ | 384,453 | | $ | 387,291 | | $ | 378,535 |
Stabilized, Non-Mature Communities | | 2,739 | | | 16,480 | | | 16,396 | | | 14,831 | | | 9,292 | | | 4,073 |
Development Communities | | 415 | | | 820 | | | 163 | | | 53 | | | 3 | | | - |
Non-Residential / Other | | - | | | 7,866 | | | 8,270 | | | 8,110 | | | 7,938 | | | 7,526 |
Total | | 55,699 | | $ | 413,328 | | $ | 410,619 | | $ | 407,447 | | $ | 404,524 | | $ | 390,134 |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | |
Same-Store Communities | | | | $ | 119,693 | | $ | 121,502 | | $ | 115,870 | | $ | 120,295 | | $ | 115,432 |
Stabilized, Non-Mature Communities | | | | | 6,457 | | | 6,864 | | | 6,302 | | | 4,037 | | | 2,493 |
Development Communities | | | | | 855 | | | 505 | | | 302 | | | 85 | | | 41 |
Non-Residential / Other | | | | | 2,322 | | | 3,004 | | | 3,421 | | | 4,147 | | | 4,649 |
Total (2) | | | | $ | 129,327 | | $ | 131,875 | | $ | 125,895 | | $ | 128,564 | | $ | 122,615 |
| | | | | | | | | | | | | | | | | |
Net Operating Income | | | | | | | | | | | | | | | | | |
Same-Store Communities | | | | $ | 268,469 | | $ | 264,288 | | $ | 268,583 | | $ | 266,996 | | $ | 263,103 |
Stabilized, Non-Mature Communities | | | | | 10,023 | | | 9,532 | | | 8,529 | | | 5,255 | | | 1,580 |
Development Communities | | | | | (35) | | | (342) | | | (249) | | | (82) | | | (41) |
Non-Residential / Other | | | | | 5,544 | | | 5,266 | | | 4,689 | | | 3,791 | | | 2,877 |
Total | | | | $ | 284,001 | | $ | 278,744 | | $ | 281,552 | | $ | 275,960 | | $ | 267,519 |
| | | | | | | | | | | | | | | | | |
Operating Margin | | | | | | | | | | | | | | | | | |
Same-Store Communities | | | | | 69.2% | | | 68.5% | | | 69.9% | | | 68.9% | | | 69.5% |
| | | | | | | | | | | | | | | | | |
Weighted Average Physical Occupancy | | | | | | | | | | | | | | | | | |
Same-Store Communities | | | | | 96.8% | | | 97.0% | | | 96.9% | | | 96.7% | | | 96.6% |
Stabilized, Non-Mature Communities | | | | | 96.1% | | | 94.2% | | | 94.8% | | | 91.1% | | | 64.1% |
Development Communities | | | | | 26.9% | | | 21.2% | | | 10.9% | | | - | | | - |
Other (3) | | | | | - | | | - | | | 97.9% | | | 96.5% | | | 97.3% |
Total | | | | | 96.4% | | | 96.8% | | | 96.7% | | | 96.4% | | | 96.1% |
| | | | | | | | | | | | | | | | | |
Sold and Held for Disposition Communities | | | | | | | | | | | | | | | | | |
Revenues | | - | | $ | - | | $ | 1,050 | | $ | 3,447 | | $ | 3,835 | | $ | 12,964 |
Expenses (2) | | | | | - | | | 398 | | | 1,109 | | | 1,139 | | | 3,762 |
Net Operating Income/(Loss) | | | | $ | - | | $ | 652 | | $ | 2,338 | | $ | 2,696 | | $ | 9,202 |
| | | | | | | | | | | | | | | | | |
Total | | 55,699 | | $ | 284,001 | | $ | 279,396 | | $ | 283,890 | | $ | 278,656 | | $ | 276,721 |
(1) | See Attachment 14 for definitions and other terms. |
(2) | The summation of Total expenses and Sold and Held for Disposition Communities expenses above agrees to the summation of property operating and maintenance and real estate taxes and insurance expenses on Attachment 1. |
(3) | Includes occupancy of Sold and Held for Disposition Communities. |
8
Attachment 6
Same-Store Operating Expense Information
(Dollars in Thousands)
(Unaudited) (1)
| | % of 2Q 2024 | | | | | | | | |
| | SS Operating | | | | | | | | |
Year-Over-Year Comparison | | Expenses | | 2Q 2024 | | 2Q 2023 | | % Change | ||
| | | | | | | | | | |
Personnel | | 14.2% | | $ | 16,965 | | $ | 16,235 | | 4.5% |
Utilities | | 13.7% | | | 16,349 | | | 15,994 | | 2.2% |
Repair and maintenance | | 19.6% | | | 23,467 | | | 23,334 | | 0.6% |
Administrative and marketing | | 7.1% | | | 8,520 | | | 7,727 | | 10.3% |
Controllable expenses | | 54.6% | | | 65,301 | | | 63,290 | | 3.2% |
| | | | | | | | | | |
Real estate taxes | | 40.5% | | $ | 48,478 | | $ | 45,945 | | 5.5% |
Insurance | | 4.9% | | | 5,914 | | | 6,197 | | -4.6% |
Same-Store operating expenses | | 100.0% | | $ | 119,693 | | $ | 115,432 | | 3.7% |
| | | | | | | | | | |
Same-Store Homes | | 52,545 | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | % of 2Q 2024 | | | | | | | | |
| | SS Operating | | | | | | | | |
Sequential Comparison | | Expenses | | 2Q 2024 | | 1Q 2024 | | % Change | ||
| | | | | | | | | | |
Personnel | | 14.2% | | $ | 16,965 | | $ | 18,105 | | -6.3% |
Utilities | | 13.7% | | | 16,349 | | | 17,630 | | -7.3% |
Repair and maintenance | | 19.6% | | | 23,467 | | | 23,701 | | -1.0% |
Administrative and marketing | | 7.1% | | | 8,520 | | | 8,065 | | 5.6% |
Controllable expenses | | 54.6% | | | 65,301 | | | 67,501 | | -3.3% |
| | | | | | | | | | |
Real estate taxes | | 40.5% | | $ | 48,478 | | $ | 48,102 | | 0.8% |
Insurance | | 4.9% | | | 5,914 | | | 5,899 | | 0.2% |
Same-Store operating expenses | | 100.0% | | $ | 119,693 | | $ | 121,502 | | -1.5% |
| | | | | | | | | | |
Same-Store Homes | | 52,545 | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | % of YTD 2024 | | | | | | | | |
| | SS Operating | | | | | | | | |
Year-to-Date Comparison | | Expenses | | YTD 2024 | | YTD 2023 | | % Change | ||
| | | | | | | | | | |
Personnel (2) | | 14.6% | | $ | 34,547 | | $ | 29,527 | | 17.0% |
Utilities | | 14.2% | | | 33,556 | | | 32,698 | | 2.6% |
Repair and maintenance | | 19.5% | | | 46,290 | | | 44,119 | | 4.9% |
Administrative and marketing | | 6.9% | | | 16,330 | | | 14,733 | | 10.8% |
Controllable expenses | | 55.2% | | | 130,723 | | | 121,077 | | 8.0% |
| | | | | | | | | | |
Real estate taxes | | 39.9% | | $ | 94,773 | | $ | 91,558 | | 3.5% |
Insurance | | 4.9% | | | 11,638 | | | 12,262 | | -5.1% |
Same-Store operating expenses | | 100.0% | | $ | 237,134 | | $ | 224,897 | | 5.4% |
| | | | | | | | | | |
Same-Store Homes | | 51,804 | | | | | | | | |
(1) | See Attachment 14 for definitions and other terms. |
(2) | Personnel for YTD 2023 includes a refundable payroll tax credit from 1Q 2023 of $3.7 million related to the Employee Retention Credit program. |
9
Attachment 7(A)
Apartment Home Breakout
Portfolio Overview as of Quarter Ended
June 30, 2024
(Unaudited) (1)
| | | | | | | Unconsolidated | | | Revenue Per | |
| | | | | | Total | Joint Venture | Total | | Occupied | |
| | Same-Store | | Non-Mature | | Consolidated | Operating | Homes | | Home | |
| | Homes | | Homes (2) | | Homes | Homes (3) | (incl. JV) (3) | | (Incl. JV at Share)(4) | |
West Region | | | | | | | | | | | |
Orange County, CA | | 4,305 | | - | | 4,305 | 701 | 5,006 | | $ | 3,079 |
San Francisco, CA | | 2,917 | | 393 | | 3,310 | 602 | 3,912 | | | 3,545 |
Seattle, WA | | 2,702 | | - | | 2,702 | 284 | 2,986 | | | 2,844 |
Monterey Peninsula, CA | | 1,567 | | - | | 1,567 | - | 1,567 | | | 2,393 |
Los Angeles, CA | | 1,225 | | - | | 1,225 | 340 | 1,565 | | | 3,311 |
| | 12,716 | | 393 | | 13,109 | 1,927 | 15,036 | | | |
| | | | | | | | | | | |
Mid-Atlantic Region | | | | | | | | | | | |
Metropolitan DC | | 8,819 | | 300 | | 9,119 | 360 | 9,479 | | | 2,355 |
Baltimore, MD | | 2,222 | | - | | 2,222 | - | 2,222 | | | 1,944 |
Richmond, VA | | 1,359 | | - | | 1,359 | - | 1,359 | | | 1,870 |
| | 12,400 | | 300 | | 12,700 | 360 | 13,060 | | | |
| | | | | | | | | | | |
Northeast Region | | | | | | | | | | | |
Boston, MA | | 4,667 | | - | | 4,667 | 876 | 5,543 | | | 3,155 |
New York, NY | | 2,318 | | - | | 2,318 | 710 | 3,028 | | | 4,801 |
| | 6,985 | | - | | 6,985 | 1,586 | 8,571 | | | |
| | | | | | | | | | | |
Southeast Region | | | | | | | | | | | |
Tampa, FL | | 3,877 | | 330 | | 4,207 | - | 4,207 | | | 2,164 |
Orlando, FL | | 3,493 | | - | | 3,493 | - | 3,493 | | | 1,930 |
Nashville, TN | | 2,261 | | - | | 2,261 | - | 2,261 | | | 1,762 |
| | 9,631 | | 330 | | 9,961 | - | 9,961 | | | |
| | | | | | | | | | | |
Southwest Region | | | | | | | | | | | |
Dallas, TX | | 6,218 | | 1,231 | | 7,449 | - | 7,449 | | | 1,799 |
Austin, TX | | 1,272 | | 608 | | 1,880 | - | 1,880 | | | 1,855 |
| | 7,490 | | 1,839 | | 9,329 | - | 9,329 | | | |
| | | | | | | | | | | |
Other Markets (5) | | 3,323 | | 292 | | 3,615 | 554 | 4,169 | | | 2,633 |
| | | | | | | | | | | |
Totals | | 52,545 | | 3,154 | | 55,699 | 4,427 | 60,126 | | $ | 2,563 |
| | | | | | | | | | | |
Communities (6) | | 157 | | 12 | | 169 | 18 | 187 | | | |
| | | | | | | | | | | |
| | | | Homes | | Communities | | | | | |
Total completed homes | | | | 60,126 | | 187 | | | | | |
Under Development (7) | | | | - | | - | | | | | |
| | | | | | | | | | | |
Total Quarter-end homes and communities | | | | 60,126 | | 187 | | | | | |
(1) | See Attachment 14 for definitions and other terms. |
(2) | Represents homes included in Stabilized, Non-Mature, Acquired, Development, Redevelopment and Non-Residential/Other Communities categories on Attachment 5. Excludes development homes not yet completed and Sold and Held for Disposition Communities. |
(3) | Represents joint venture operating homes at 100 percent. Excludes joint venture held for disposition communities. See Attachment 10(A) for UDR's joint venture and partnership ownership interests. |
(4) | Represents joint ventures at UDR's ownership interests. Excludes joint venture held for disposition communities. See Attachment 10(A) for UDR's joint venture and partnership ownership interests. |
(5) | Other Markets include Denver (510 homes), Palm Beach (636 homes), Inland Empire (658 homes), San Diego (163 wholly owned, 264 JV homes), Portland (476 homes) and Philadelphia (1,172 wholly owned, 290 JV homes). |
(6) | Represents communities where 100 percent of all development homes have been completed. |
(7) | See Attachment 9 for UDR’s developments and ownership interests. |
10
Attachment 7(B)
Non-Mature Home Summary and Net Operating Income by Market
June 30, 2024
(Unaudited) (1)
Non-Mature Home Breakout - By Date | ||||||||||
| | | | | | | | | | |
| | | | | | | | | | |
Community |
| Category |
| # of Homes |
| Market |
| Same-Store Quarter (2) |
| |
| | | | | | | | | | |
| | | | | | | | | | |
Cirrus | | Stabilized, Non-Mature | | 292 | | Denver, CO | | 3Q24 | | |
| | | | | | | | | | |
Central Square at Frisco | | Stabilized, Non-Mature | | 298 | | Dallas, TX | | 4Q24 | | |
| | | | | | | | | | |
Villaggio | | Stabilized, Non-Mature | | 273 | | Dallas, TX | | 4Q24 | | |
| | | | | | | | | | |
Lofts at Palisades | | Stabilized, Non-Mature | | 343 | | Dallas, TX | | 4Q24 | | |
| | | | | | | | | | |
Flats at Palisades | | Stabilized, Non-Mature | | 232 | | Dallas, TX | | 4Q24 | | |
| | | | | | | | | | |
Estancia Villas | | Stabilized, Non-Mature | | 312 | | Austin, TX | | 4Q24 | | |
| | | | | | | | | | |
Palo Verde | | Stabilized, Non-Mature | | 296 | | Austin, TX | | 4Q24 | | |
| | | | | | | | | | |
5421 at Dublin Station | | Stabilized, Non-Mature | | 220 | | San Francisco, CA | | 1Q25 | | |
| | | | | | | | | | |
The MO | | Stabilized, Non-Mature | | 300 | | Washington, DC | | 2Q25 | | |
| | | | | | | | | | |
Residences at Lake Merritt | | Stabilized, Non-Mature | | 173 | | San Francisco, CA | | 2Q25 | | |
| | | | | | | | | | |
Villas at Fiori | | Development | | 85 | | Dallas, TX | | 2Q26 | | |
| | | | | | | | | | |
101 N. Meridian | | Development | | 330 | | Tampa, FL | | 3Q26 | | |
| | | | | | | | | | |
Total | | | | 3,154 | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Net Operating Income Breakout By Market | | | | | | | | | | |
| | | | | | | | | | |
| | As a % of NOI | | | | As a % of NOI | ||||
Region | | Same-Store | | Total | | Region | | Same-Store | | Total |
West Region | | | | | | Southeast Region | | | | |
Orange County, CA | | 11.3% | | 11.0% | | Tampa, FL | | 6.0% | | 5.4% |
San Francisco, CA | | 7.6% | | 8.4% | | Orlando, FL | | 5.0% | | 4.4% |
Seattle, WA | | 6.0% | | 6.2% | | Nashville, TN | | 3.1% | | 2.8% |
Monterey Peninsula, CA | | 3.1% | | 2.8% | | | | 14.1% | | 12.6% |
Los Angeles, CA | | 3.0% | | 3.2% | | Southwest Region | | | | |
| | 31.0% | | 31.6% | | Dallas, TX | | 7.6% | | 8.2% |
Mid-Atlantic Region | | | | | | Austin, TX | | 1.6% | | 2.0% |
Metropolitan DC | | 15.4% | | 14.8% | | | | 9.2% | | 10.2% |
Baltimore, MD | | 3.1% | | 2.8% | | | | | | |
Richmond, VA | | 2.1% | | 1.9% | | Other Markets (3) | | 6.6% | | 7.2% |
| | 20.6% | | 19.5% | | | | | | |
Northeast Region | | | | | | | | | | |
Boston, MA | | 11.6% | | 11.4% | | | | | | |
New York, NY | | 6.9% | | 7.5% | | | | | | |
| | 18.5% | | 18.9% | | Total | | 100.0% | | 100.0% |
| | | | | | | | | | |
(1) | See Attachment 14 for definitions and other terms. |
(2) | Estimated Same-Store quarter represents the quarter UDR anticipates contributing the community to the QTD same-store pool. |
(3) | See Attachment 7(A), footnote 5 for details regarding location of the Other Markets. |
11
Attachment 8(A)
Same-Store Operating Information By Major Market
Current Quarter vs. Prior Year Quarter
June 30, 2024
(Unaudited) (1)
| | | | | | | | | | | | | |
| | | % of Same- | | Same-Store | ||||||||
| | Total | Store Portfolio | | | | | | | | | | |
| | Same-Store | Based on | | Physical Occupancy | | Total Revenue per Occupied Home | ||||||
| | Homes | 2Q 2024 NOI | | 2Q 24 | 2Q 23 | Change | | 2Q 24 | 2Q 23 | Change | ||
| | | | | | | | | | | | | |
West Region | | | | | | | | | | | | | |
Orange County, CA | | 4,305 | 11.3% | | 96.8% | 96.3% | 0.5% | | $ | 3,081 | $ | 3,003 | 2.6% |
San Francisco, CA | | 2,917 | 7.6% | | 96.6% | 96.2% | 0.4% | | | 3,491 | | 3,454 | 1.1% |
Seattle, WA | | 2,702 | 6.0% | | 97.0% | 97.1% | -0.1% | | | 2,853 | | 2,819 | 1.2% |
Monterey Peninsula, CA | | 1,567 | 3.1% | | 95.4% | 95.7% | -0.3% | | | 2,393 | | 2,237 | 7.0% |
Los Angeles, CA | | 1,225 | 3.0% | | 96.2% | 96.3% | -0.1% | | | 3,150 | | 3,075 | 2.4% |
| | 12,716 | 31.0% | | 96.6% | 96.4% | 0.2% | | | 3,049 | | 2,980 | 2.3% |
| | | | | | | | | | | | | |
Mid-Atlantic Region | | | | | | | | | | | | | |
Metropolitan DC | | 8,819 | 15.4% | | 97.3% | 97.2% | 0.1% | | | 2,360 | | 2,275 | 3.7% |
Baltimore, MD | | 2,222 | 3.1% | | 96.4% | 95.6% | 0.8% | | | 1,944 | | 1,884 | 3.2% |
Richmond, VA | | 1,359 | 2.1% | | 96.6% | 96.7% | -0.1% | | | 1,870 | | 1,808 | 3.4% |
| | 12,400 | 20.6% | | 97.1% | 96.9% | 0.2% | | | 2,233 | | 2,155 | 3.6% |
| | | | | | | | | | | | | |
Northeast Region | | | | | | | | | | | | | |
Boston, MA | | 4,667 | 11.6% | | 97.0% | 96.7% | 0.3% | | | 3,195 | | 3,073 | 4.0% |
New York, NY | | 2,318 | 6.9% | | 97.6% | 98.0% | -0.4% | | | 4,734 | | 4,567 | 3.7% |
| | 6,985 | 18.5% | | 97.2% | 97.1% | 0.1% | | | 3,708 | | 3,573 | 3.8% |
| | | | | | | | | | | | | |
Southeast Region | | | | | | | | | | | | | |
Tampa, FL | | 3,877 | 6.0% | | 96.6% | 96.6% | 0.0% | | | 2,150 | | 2,127 | 1.1% |
Orlando, FL | | 3,493 | 5.0% | | 96.7% | 96.3% | 0.4% | | | 1,930 | | 1,923 | 0.4% |
Nashville, TN | | 2,261 | 3.1% | | 96.6% | 95.8% | 0.8% | | | 1,762 | | 1,768 | -0.3% |
| | 9,631 | 14.1% | | 96.6% | 96.3% | 0.3% | | | 1,979 | | 1,969 | 0.5% |
| | | | | | | | | | | | | |
Southwest Region | | | | | | | | | | | | | |
Dallas, TX | | 6,218 | 7.6% | | 96.7% | 96.4% | 0.3% | | | 1,785 | | 1,785 | 0.0% |
Austin, TX | | 1,272 | 1.6% | | 96.9% | 96.1% | 0.8% | | | 1,920 | | 1,939 | -1.0% |
| | 7,490 | 9.2% | | 96.7% | 96.3% | 0.4% | | | 1,808 | | 1,811 | -0.2% |
| | | | | | | | | | | | | |
Other Markets | | 3,323 | 6.6% | | 96.8% | 96.6% | 0.2% | | | 2,607 | | 2,564 | 1.7% |
| | | | | | | | | | | | | |
Total/Weighted Avg. | | 52,545 | 100.0% | | 96.8% | 96.6% | 0.2% | | $ | 2,543 | $ | 2,487 | 2.3% |
(1) | See Attachment 14 for definitions and other terms. |
12
Attachment 8(B)
Same-Store Operating Information By Major Market
Current Quarter vs. Prior Year Quarter
June 30, 2024
(Unaudited) (1)
| | | | Same-Store ($000s) | |||||||||||||||
| | | | | | | | | | | | | | | | | | | |
| Total | | | | | | | | | | | | | | | | | | |
| Same-Store | | Revenues | | Expenses | | Net Operating Income | ||||||||||||
| Homes | | 2Q 24 | 2Q 23 | Change | | 2Q 24 | 2Q 23 | Change | | 2Q 24 | 2Q 23 | Change | ||||||
| | | | | | | | | | | | | | | | | | | |
West Region | | | | | | | | | | | | | | | | | | | |
Orange County, CA | 4,305 | | $ | 38,513 | $ | 37,259 | 3.4% | | $ | 8,158 | $ | 8,292 | -1.6% | | $ | 30,355 | $ | 28,967 | 4.8% |
San Francisco, CA | 2,917 | | | 29,515 | | 29,075 | 1.5% | | | 9,016 | | 8,844 | 1.9% | | | 20,499 | | 20,231 | 1.3% |
Seattle, WA | 2,702 | | | 22,433 | | 22,178 | 1.1% | | | 6,215 | | 5,876 | 5.8% | | | 16,218 | | 16,302 | -0.5% |
Monterey Peninsula, CA | 1,567 | | | 10,730 | | 10,064 | 6.6% | | | 2,437 | | 2,327 | 4.7% | | | 8,293 | | 7,737 | 7.2% |
Los Angeles, CA | 1,225 | | | 11,138 | | 10,882 | 2.4% | | | 3,051 | | 3,012 | 1.3% | | | 8,087 | | 7,870 | 2.8% |
| 12,716 | | | 112,329 | | 109,458 | 2.6% | | | 28,877 | | 28,351 | 1.9% | | | 83,452 | | 81,107 | 2.9% |
| | | | | | | | | | | | | | | | | | | |
Mid-Atlantic Region | | | | | | | | | | | | | | | | | | | |
Metropolitan DC | 8,819 | | | 60,744 | | 58,510 | 3.8% | | | 19,281 | | 18,608 | 3.6% | | | 41,463 | | 39,902 | 3.9% |
Baltimore, MD | 2,222 | | | 12,495 | | 12,002 | 4.1% | | | 4,272 | | 4,034 | 5.9% | | | 8,223 | | 7,968 | 3.2% |
Richmond, VA | 1,359 | | | 7,364 | | 7,127 | 3.3% | | | 1,829 | | 1,888 | -3.1% | | | 5,535 | | 5,239 | 5.7% |
| 12,400 | | | 80,603 | | 77,639 | 3.8% | | | 25,382 | | 24,530 | 3.5% | | | 55,221 | | 53,109 | 4.0% |
| | | | | | | | | | | | | | | | | | | |
Northeast Region | | | | | | | | | | | | | | | | | | | |
Boston, MA | 4,667 | | | 43,394 | | 41,608 | 4.3% | | | 12,206 | | 11,614 | 5.1% | | | 31,188 | | 29,994 | 4.0% |
New York, NY | 2,318 | | | 32,127 | | 31,127 | 3.2% | | | 13,560 | | 12,910 | 5.0% | | | 18,567 | | 18,217 | 1.9% |
| 6,985 | | | 75,521 | | 72,735 | 3.8% | | | 25,766 | | 24,524 | 5.1% | | | 49,755 | | 48,211 | 3.2% |
| | | | | | | | | | | | | | | | | | | |
Southeast Region | | | | | | | | | | | | | | | | | | | |
Tampa, FL | 3,877 | | | 24,154 | | 23,899 | 1.1% | | | 8,079 | | 8,113 | -0.4% | | | 16,075 | | 15,786 | 1.8% |
Orlando, FL | 3,493 | | | 19,552 | | 19,409 | 0.7% | | | 6,217 | | 5,923 | 5.0% | | | 13,335 | | 13,486 | -1.1% |
Nashville, TN | 2,261 | | | 11,544 | | 11,481 | 0.5% | | | 3,201 | | 3,157 | 1.4% | | | 8,343 | | 8,324 | 0.2% |
| 9,631 | | | 55,250 | | 54,789 | 0.8% | | | 17,497 | | 17,193 | 1.8% | | | 37,753 | | 37,596 | 0.4% |
| | | | | | | | | | | | | | | | | | | |
Southwest Region | | | | | | | | | | | | | | | | | | | |
Dallas, TX | 6,218 | | | 32,200 | | 32,103 | 0.3% | | | 11,820 | | 11,326 | 4.4% | | | 20,380 | | 20,777 | -1.9% |
Austin, TX | 1,272 | | | 7,098 | | 7,117 | -0.3% | | | 2,930 | | 2,642 | 10.9% | | | 4,168 | | 4,475 | -6.8% |
| 7,490 | | | 39,298 | | 39,220 | 0.2% | | | 14,750 | | 13,968 | 5.6% | | | 24,548 | | 25,252 | -2.8% |
| | | | | | | | | | | | | | | | | | | |
Other Markets | 3,323 | | | 25,161 | | 24,694 | 1.9% | | | 7,421 | | 6,866 | 8.1% | | | 17,740 | | 17,828 | -0.5% |
| | | | | | | | | | | | | | | | | | | |
Total | 52,545 | | $ | 388,162 | $ | 378,535 | 2.5% | | $ | 119,693 | $ | 115,432 | 3.7% | | $ | 268,469 | $ | 263,103 | 2.0% |
(1) | See Attachment 14 for definitions and other terms. |
13
Attachment 8(C)
Same-Store Operating Information By Major Market
Current Quarter vs. Last Quarter
June 30, 2024
(Unaudited) (1)
| | | | Same-Store | ||||||||
| | Total | | | | | | | | | | |
| | Same-Store | | Physical Occupancy | | Total Revenue per Occupied Home | ||||||
| | Homes | | 2Q 24 | 1Q 24 | Change | | 2Q 24 | 1Q 24 | Change | ||
| | | | | | | | | | | | |
West Region | | | | | | | | | | | | |
Orange County, CA | | 4,305 | | 96.8% | 96.8% | 0.0% | | $ | 3,081 | $ | 3,062 | 0.6% |
San Francisco, CA | | 2,917 | | 96.6% | 97.4% | -0.8% | | | 3,491 | | 3,456 | 1.0% |
Seattle, WA | | 2,702 | | 97.0% | 97.8% | -0.8% | | | 2,853 | | 2,822 | 1.1% |
Monterey Peninsula, CA | | 1,567 | | 95.4% | 96.2% | -0.8% | | | 2,393 | | 2,364 | 1.2% |
Los Angeles, CA | | 1,225 | | 96.2% | 96.9% | -0.7% | | | 3,150 | | 3,199 | -1.5% |
| | 12,716 | | 96.6% | 97.1% | -0.5% | | | 3,049 | | 3,029 | 0.7% |
| | | | | | | | | | | | |
Mid-Atlantic Region | | | | | | | | | | | | |
Metropolitan DC | | 8,819 | | 97.3% | 97.6% | -0.3% | | | 2,360 | | 2,339 | 0.9% |
Baltimore, MD | | 2,222 | | 96.4% | 96.1% | 0.3% | | | 1,944 | | 1,909 | 1.8% |
Richmond, VA | | 1,359 | | 96.6% | 97.0% | -0.4% | | | 1,870 | | 1,850 | 1.1% |
| | 12,400 | | 97.1% | 97.3% | -0.2% | | | 2,233 | | 2,209 | 1.1% |
| | | | | | | | | | | | |
Northeast Region | | | | | | | | | | | | |
Boston, MA | | 4,667 | | 97.0% | 96.9% | 0.1% | | | 3,195 | | 3,162 | 1.0% |
New York, NY | | 2,318 | | 97.6% | 98.2% | -0.6% | | | 4,734 | | 4,680 | 1.2% |
| | 6,985 | | 97.2% | 97.3% | -0.1% | | | 3,708 | | 3,670 | 1.0% |
| | | | | | | | | | | | |
Southeast Region | | | | | | | | | | | | |
Tampa, FL | | 3,877 | | 96.6% | 96.8% | -0.2% | | | 2,150 | | 2,130 | 0.9% |
Orlando, FL | | 3,493 | | 96.7% | 97.0% | -0.3% | | | 1,930 | | 1,913 | 0.9% |
Nashville, TN | | 2,261 | | 96.6% | 96.8% | -0.2% | | | 1,762 | | 1,741 | 1.2% |
| | 9,631 | | 96.6% | 96.9% | -0.3% | | | 1,979 | | 1,960 | 1.0% |
| | | | | | | | | | | | |
Southwest Region | | | | | | | | | | | | |
Dallas, TX | | 6,218 | | 96.7% | 96.5% | 0.2% | | | 1,785 | | 1,778 | 0.4% |
Austin, TX | | 1,272 | | 96.9% | 97.0% | -0.1% | | | 1,920 | | 1,895 | 1.3% |
| | 7,490 | | 96.7% | 96.6% | 0.1% | | | 1,808 | | 1,798 | 0.6% |
| | | | | | | | | | | | |
Other Markets | | 3,323 | | 96.8% | 97.1% | -0.3% | | | 2,607 | | 2,577 | 1.2% |
| | | | | | | | | | | | |
Total/Weighted Avg. | | 52,545 | | 96.8% | 97.0% | -0.2% | | $ | 2,543 | $ | 2,525 | 0.7% |
(1) | See Attachment 14 for definitions and other terms. |
14
Attachment 8(D)
Same-Store Operating Information By Major Market
Current Quarter vs. Last Quarter
June 30, 2024
(Unaudited) (1)
| | | | Same-Store ($000s) | |||||||||||||||
| Total | | | | | | | | | | | | | | | | | | |
| Same-Store | | Revenues | | Expenses | | Net Operating Income | ||||||||||||
| Homes | | 2Q 24 | 1Q 24 | Change | | 2Q 24 | 1Q 24 | Change | | 2Q 24 | 1Q 24 | Change | ||||||
| | | | | | | | | | | | | | | | | | | |
West Region | | | | | | | | | | | | | | | | | | | |
Orange County, CA | 4,305 | | $ | 38,513 | $ | 38,277 | 0.6% | | $ | 8,158 | $ | 8,511 | -4.1% | | $ | 30,355 | $ | 29,766 | 2.0% |
San Francisco, CA | 2,917 | | | 29,515 | | 29,446 | 0.2% | | | 9,016 | | 8,895 | 1.4% | | | 20,499 | | 20,551 | -0.3% |
Seattle, WA | 2,702 | | | 22,433 | | 22,368 | 0.3% | | | 6,215 | | 6,216 | 0.0% | | | 16,218 | | 16,152 | 0.4% |
Monterey Peninsula, CA | 1,567 | | | 10,730 | | 10,692 | 0.4% | | | 2,437 | | 2,483 | -1.8% | | | 8,293 | | 8,209 | 1.0% |
Los Angeles, CA | 1,225 | | | 11,138 | | 11,392 | -2.2% | | | 3,051 | | 3,209 | -4.9% | | | 8,087 | | 8,183 | -1.2% |
| 12,716 | | | 112,329 | | 112,175 | 0.1% | | | 28,877 | | 29,314 | -1.5% | | | 83,452 | | 82,861 | 0.7% |
| | | | | | | | | | | | | | | | | | | |
Mid-Atlantic Region | | | | | | | | | | | | | | | | | | | |
Metropolitan DC | 8,819 | | | 60,744 | | 60,394 | 0.6% | | | 19,281 | | 19,252 | 0.2% | | | 41,463 | | 41,142 | 0.8% |
Baltimore, MD | 2,222 | | | 12,495 | | 12,223 | 2.2% | | | 4,272 | | 4,029 | 6.1% | | | 8,223 | | 8,194 | 0.3% |
Richmond, VA | 1,359 | | | 7,364 | | 7,318 | 0.6% | | | 1,829 | | 1,949 | -6.2% | | | 5,535 | | 5,369 | 3.1% |
| 12,400 | | | 80,603 | | 79,935 | 0.8% | | | 25,382 | | 25,230 | 0.6% | | | 55,221 | | 54,705 | 0.9% |
| | | | | | | | | | | | | | | | | | | |
Northeast Region | | | | | | | | | | | | | | | | | | | |
Boston, MA | 4,667 | | | 43,394 | | 42,898 | 1.2% | | | 12,206 | | 13,158 | -7.2% | | | 31,188 | | 29,740 | 4.9% |
New York, NY | 2,318 | | | 32,127 | | 31,957 | 0.5% | | | 13,560 | | 14,025 | -3.3% | | | 18,567 | | 17,932 | 3.5% |
| 6,985 | | | 75,521 | | 74,855 | 0.9% | | | 25,766 | | 27,183 | -5.2% | | | 49,755 | | 47,672 | 4.4% |
| | | | | | | | | | | | | | | | | | | |
Southeast Region | | | | | | | | | | | | | | | | | | | |
Tampa, FL | 3,877 | | | 24,154 | | 23,981 | 0.7% | | | 8,079 | | 8,124 | -0.6% | | | 16,075 | | 15,857 | 1.4% |
Orlando, FL | 3,493 | | | 19,552 | | 19,447 | 0.5% | | | 6,217 | | 6,193 | 0.4% | | | 13,335 | | 13,254 | 0.6% |
Nashville, TN | 2,261 | | | 11,544 | | 11,423 | 1.1% | | | 3,201 | | 3,294 | -2.8% | | | 8,343 | | 8,129 | 2.6% |
| 9,631 | | | 55,250 | | 54,851 | 0.7% | | | 17,497 | | 17,611 | -0.7% | | | 37,753 | | 37,240 | 1.4% |
| | | | | | | | | | | | | | | | | | | |
Southwest Region | | | | | | | | | | | | | | | | | | | |
Dallas, TX | 6,218 | | | 32,200 | | 32,013 | 0.6% | | | 11,820 | | 11,991 | -1.4% | | | 20,380 | | 20,022 | 1.8% |
Austin, TX | 1,272 | | | 7,098 | | 7,016 | 1.2% | | | 2,930 | | 2,707 | 8.2% | | | 4,168 | | 4,309 | -3.3% |
| 7,490 | | | 39,298 | | 39,029 | 0.7% | | | 14,750 | | 14,698 | 0.4% | | | 24,548 | | 24,331 | 0.9% |
| | | | | | | | | | | | | | | | | | | |
Other Markets | 3,323 | | | 25,161 | | 24,945 | 0.9% | | | 7,421 | | 7,466 | -0.6% | | | 17,740 | | 17,479 | 1.5% |
| | | | | | | | | | | | | | | | | | | |
Total | 52,545 | | $ | 388,162 | $ | 385,790 | 0.6% | | $ | 119,693 | $ | 121,502 | -1.5% | | $ | 268,469 | $ | 264,288 | 1.6% |
(1) | See Attachment 14 for definitions and other terms. |
15
Attachment 8(E)
Same-Store Operating Information By Major Market
Current Year-to-Date vs. Prior Year-to-Date
June 30, 2024
(Unaudited) (1)
| | | % of Same- | | | | | | | | | | |
| | Total | Store Portfolio | | Same-Store | ||||||||
| | Same-Store | Based on | | Physical Occupancy | | Total Revenue per Occupied Home | ||||||
| | Homes | YTD 2024 NOI | | YTD 24 | YTD 23 | Change | | YTD 24 | YTD 23 | Change | ||
| | | | | | | | | | | | | |
West Region | | | | | | | | | | | | | |
Orange County, CA | | 4,305 | 11.5% | | 96.8% | 96.0% | 0.8% | | $ | 3,071 | $ | 2,984 | 2.9% |
San Francisco, CA | | 2,781 | 7.6% | | 97.2% | 96.6% | 0.6% | | | 3,514 | | 3,464 | 1.4% |
Seattle, WA | | 2,702 | 6.1% | | 97.4% | 97.0% | 0.4% | | | 2,837 | | 2,810 | 1.0% |
Monterey Peninsula, CA | | 1,567 | 3.1% | | 95.8% | 95.5% | 0.3% | | | 2,378 | | 2,237 | 6.3% |
Los Angeles, CA | | 1,225 | 3.1% | | 96.5% | 96.4% | 0.1% | | | 3,176 | | 3,143 | 1.0% |
| | 12,580 | 31.4% | | 96.9% | 96.3% | 0.6% | | | 3,044 | | 2,976 | 2.3% |
| | | | | | | | | | | | | |
Mid-Atlantic Region | | | | | | | | | | | | | |
Metropolitan DC | | 8,819 | 15.7% | | 97.5% | 97.1% | 0.4% | | | 2,348 | | 2,260 | 3.9% |
Baltimore, MD | | 2,222 | 3.1% | | 96.2% | 95.4% | 0.8% | | | 1,927 | | 1,889 | 2.0% |
Richmond, VA | | 1,359 | 2.1% | | 96.8% | 96.7% | 0.1% | | | 1,860 | | 1,786 | 4.1% |
| | 12,400 | 20.9% | | 97.2% | 96.8% | 0.4% | | | 2,220 | | 2,143 | 3.6% |
| | | | | | | | | | | | | |
Northeast Region | | | | | | | | | | | | | |
Boston, MA | | 4,667 | 11.5% | | 97.0% | 96.7% | 0.3% | | | 3,177 | | 3,063 | 3.7% |
New York, NY | | 2,318 | 6.9% | | 97.9% | 97.9% | 0.0% | | | 4,707 | | 4,535 | 3.8% |
| | 6,985 | 18.4% | | 97.3% | 97.1% | 0.2% | | | 3,688 | | 3,556 | 3.7% |
| | | | | | | | | | | | | |
Southeast Region | | | | | | | | | | | | | |
Tampa, FL | | 3,877 | 6.1% | | 96.7% | 96.5% | 0.2% | | | 2,140 | | 2,110 | 1.4% |
Orlando, FL | | 3,493 | 5.0% | | 96.8% | 96.1% | 0.7% | | | 1,922 | | 1,904 | 0.9% |
Nashville, TN | | 2,261 | 3.1% | | 96.6% | 95.8% | 0.8% | | | 1,753 | | 1,754 | -0.1% |
| | 9,631 | 14.2% | | 96.7% | 96.2% | 0.5% | | | 1,970 | | 1,952 | 0.9% |
| | | | | | | | | | | | | |
Southwest Region | | | | | | | | | | | | | |
Dallas, TX | | 5,813 | 7.2% | | 96.6% | 96.4% | 0.2% | | | 1,780 | | 1,777 | 0.2% |
Austin, TX | | 1,272 | 1.6% | | 96.9% | 96.5% | 0.4% | | | 1,909 | | 1,929 | -1.0% |
| | 7,085 | 8.8% | | 96.7% | 96.4% | 0.3% | | | 1,803 | | 1,804 | -0.1% |
| | | | | | | | | | | | | |
Other Markets | | 3,123 | 6.3% | | 97.0% | 96.8% | 0.2% | | | 2,596 | | 2,544 | 2.0% |
| | | | | | | | | | | | | |
Total/Weighted Avg. | | 51,804 | 100.0% | | 97.0% | 96.5% | 0.5% | | $ | 2,538 | $ | 2,479 | 2.4% |
(1) | See Attachment 14 for definitions and other terms. |
16
Attachment 8(F)
Same-Store Operating Information By Major Market
Current Year-to-Date vs. Prior Year-to-Date
June 30, 2024
(Unaudited) (1)
| | | | | | | | | | | | | | | | | | | |
| | | | Same-Store ($000s) | |||||||||||||||
| Total | | | | | | | | | | | | | | | | | | |
| Same-Store | | Revenues | | Expenses | | Net Operating Income | ||||||||||||
| Homes | | YTD 24 | YTD 23 | Change | | YTD 24 | YTD 23 | Change | | YTD 24 | YTD 23 | Change | ||||||
| | | | | | | | | | | | | | | | | | | |
West Region | | | | | | | | | | | | | | | | | | | |
Orange County, CA | 4,305 | | $ | 76,789 | $ | 73,817 | 4.0% | | $ | 16,670 | $ | 16,281 | 2.4% | | $ | 60,119 | $ | 57,536 | 4.5% |
San Francisco, CA | 2,781 | | | 56,987 | | 55,796 | 2.1% | | | 16,799 | | 16,077 | 4.5% | | | 40,188 | | 39,719 | 1.2% |
Seattle, WA | 2,702 | | | 44,801 | | 44,171 | 1.4% | | | 12,431 | | 11,297 | 10.0% | | | 32,370 | | 32,874 | -1.5% |
Monterey Peninsula, CA | 1,567 | | | 21,422 | | 20,089 | 6.6% | | | 4,920 | | 4,581 | 7.4% | | | 16,502 | | 15,508 | 6.4% |
Los Angeles, CA | 1,225 | | | 22,530 | | 22,269 | 1.2% | | | 6,259 | | 5,956 | 5.1% | | | 16,271 | | 16,313 | -0.3% |
| 12,580 | | | 222,529 | | 216,142 | 3.0% | | | 57,079 | | 54,192 | 5.3% | | | 165,450 | | 161,950 | 2.2% |
| | | | | | | | | | | | | | | | | | | |
Mid-Atlantic Region | | | | | | | | | | | | | | | | | | | |
Metropolitan DC | 8,819 | | | 121,139 | | 116,136 | 4.3% | | | 38,533 | | 36,195 | 6.5% | | | 82,606 | | 79,941 | 3.3% |
Baltimore, MD | 2,222 | | | 24,717 | | 24,012 | 2.9% | | | 8,301 | | 7,771 | 6.8% | | | 16,416 | | 16,241 | 1.1% |
Richmond, VA | 1,359 | | | 14,683 | | 14,083 | 4.3% | | | 3,778 | | 3,715 | 1.7% | | | 10,905 | | 10,368 | 5.2% |
| 12,400 | | | 160,539 | | 154,231 | 4.1% | | | 50,612 | | 47,681 | 6.1% | | | 109,927 | | 106,550 | 3.2% |
| | | | | | | | | | | | | | | | | | | |
Northeast Region | | | | | | | | | | | | | | | | | | | |
Boston, MA | 4,667 | | | 86,292 | | 82,932 | 4.1% | | | 25,365 | | 23,262 | 9.0% | | | 60,927 | | 59,670 | 2.1% |
New York, NY | 2,318 | | | 64,084 | | 61,742 | 3.8% | | | 27,585 | | 25,861 | 6.7% | | | 36,499 | | 35,881 | 1.7% |
| 6,985 | | | 150,376 | | 144,674 | 3.9% | | | 52,950 | | 49,123 | 7.8% | | | 97,426 | | 95,551 | 2.0% |
| | | | | | | | | | | | | | | | | | | |
Southeast Region | | | | | | | | | | | | | | | | | | | |
Tampa, FL | 3,877 | | | 48,135 | | 47,357 | 1.6% | | | 16,203 | | 16,274 | -0.4% | | | 31,932 | | 31,083 | 2.7% |
Orlando, FL | 3,493 | | | 38,999 | | 38,339 | 1.7% | | | 12,410 | | 11,679 | 6.3% | | | 26,589 | | 26,660 | -0.3% |
Nashville, TN | 2,261 | | | 22,967 | | 22,779 | 0.8% | | | 6,495 | | 6,199 | 4.8% | | | 16,472 | | 16,580 | -0.7% |
| 9,631 | | | 110,101 | | 108,475 | 1.5% | | | 35,108 | | 34,152 | 2.8% | | | 74,993 | | 74,323 | 0.9% |
| | | | | | | | | | | | | | | | | | | |
Southwest Region | | | | | | | | | | | | | | | | | | | |
Dallas, TX | 5,813 | | | 59,987 | | 59,761 | 0.4% | | | 22,002 | | 21,934 | 0.3% | | | 37,985 | | 37,827 | 0.4% |
Austin, TX | 1,272 | | | 14,115 | | 14,206 | -0.6% | | | 5,636 | | 5,306 | 6.2% | | | 8,479 | | 8,900 | -4.7% |
| 7,085 | | | 74,102 | | 73,967 | 0.2% | | | 27,638 | | 27,240 | 1.5% | | | 46,464 | | 46,727 | -0.6% |
| | | | | | | | | | | | | | | | | | | |
Other Markets | 3,123 | | | 47,177 | | 46,149 | 2.2% | | | 13,747 | | 12,509 | 9.9% | | | 33,430 | | 33,640 | -0.6% |
| | | | | | | | | | | | | | | | | | | |
Total | 51,804 | | $ | 764,824 | $ | 743,638 | 2.8% | | $ | 237,134 | $ | 224,897 | 5.4% | | $ | 527,690 | $ | 518,741 | 1.7% |
(1) | See Attachment 14 for definitions and other terms. |
17
Attachment 8(G)
Same-Store Operating Information By Major Market
June 30, 2024
(Unaudited) (1)
| | Effective Blended Lease Rate Growth | | Effective New Lease Rate Growth | | Effective Renewal Lease Rate Growth | | Annualized Turnover | |||
| | 2Q 2024 | | 2Q 2024 | | 2Q 2024 | | 2Q 2024 | 2Q 2023 | YTD 2024 | YTD 2023 |
| | | | | | | | | | | |
West Region | | 3.1% | | 2.2% | | 3.9% | | 45.7% | 45.9% | 40.5% | 42.9% |
| | | | | | | | | | | |
Mid-Atlantic Region | | 5.6% | | 5.7% | | 5.5% | | 44.8% | 48.2% | 38.5% | 42.7% |
| | | | | | | | | | | |
Northeast Region | | 3.7% | | 3.5% | | 3.8% | | 46.7% | 50.3% | 37.2% | 39.3% |
| | | | | | | | | | | |
Southeast Region | | -1.7% | | -5.4% | | 2.1% | | 52.5% | 57.8% | 47.5% | 52.5% |
| | | | | | | | | | | |
Southwest Region | | -1.9% | | -6.3% | | 2.9% | | 49.9% | 54.2% | 45.2% | 49.5% |
| | | | | | | | | | | |
Other Markets | | -0.3% | | -4.5% | | 3.7% | | 42.5% | 47.6% | 36.9% | 37.5% |
| | | | | | | | | | | |
Total/Weighted Avg. | | 2.4% | | 0.5% | | 3.9% | | 46.9% | 49.9% | 41.1% | 44.4% |
| | | | | | | | | | | |
| | | | | | | | | | | |
Allocation of Total Homes Repriced during the Quarter | | | | 46.2% | | 53.8% | | | | | |
(1) | See Attachment 14 for definitions and other terms. |
18
Attachment 9
Development and Land Summary
June 30, 2024
(Dollars in Thousands)
(Unaudited) (1)
Wholly-Owned | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Schedule | | | Percentage | |||
| | # of | Compl. | Cost to | Budgeted | Est. Cost | | | Initial | | | | | | ||||
Community | Location | Homes | Homes | Date | Cost | per Home | Start | Occ. | Compl. | | Leased | | Occupied | |||||
| | | | | | | | | | | | | | | | | | |
Projects Under Construction | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
N/A | N/A | | - | - | $ | - | $ | - | $ | - | | N/A | N/A | N/A | | N/A | | N/A |
| | | | | | | | | | | | | | | | | | |
Total Under Construction | | | - | - | $ | - | $ | - | $ | - | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Completed Projects, Non-Stabilized | | | | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | | | | | |
Villas at Fiori | Addison, TX | | 85 | 85 | $ | 52,150 | $ | 53,500 | $ | 629 | | 1Q22 | 4Q23 | 1Q24 | | 60.0% | | 50.6% |
101 N. Meridian | Tampa, FL | | 330 | 330 | | 129,920 | | 134,000 | | 406 | | 1Q22 | 1Q24 | 2Q24 | | 36.7% | | 32.1% |
| | | | | | | | | | | | | | | | | | |
Total Completed, Non-Stabilized | | | 415 | 415 | $ | 182,070 | $ | 187,500 | $ | 452 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total - Wholly Owned | | | 415 | 415 | $ | 182,070 | $ | 187,500 | $ | 452 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |||
NOI From Wholly-Owned Projects | | 2Q 24 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Projects Under Construction | | $ | - | | | | | | | | | | | | | | | |
Completed, Non-Stabilized | | | (35) | | | | | | | | | | | | | | | |
Total | | $ | (35) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | ||||
Land Summary | Location | UDR Ownership Interest | Real Estate Cost Basis | | | | | | | | ||||||||
| | | | | | | | | | | | | | |||||
Total Land (8 parcels) | Various | 100% | $ | 245,800 | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | |
(1) | See Attachment 14 for definitions and other terms. |
19
Attachment 10(A)
Unconsolidated Summary
June 30, 2024
(Dollars in Thousands)
(Unaudited) (1)
| | | | | | | | | | | | | | | | | | |
| | | | | | | Physical | | Total Rev. per | Net Operating Income | ||||||||
| Own. | # of | | # of | | Occupancy | | Occ. Home | UDR's Share | | Total | |||||||
Portfolio Characteristics | Interest | Comm. | | Homes | | 2Q 24 |
| 2Q 24 | 2Q 24 | YTD 24 |
| YTD 24 (2) | ||||||
| | | | | | | | | | | | | | | | | | |
UDR / MetLife | 50% | | 13 | | 2,837 | | 96.6% | | $ | 4,147 | $ | 10,666 | $ | 20,735 | | $ | 41,256 | |
UDR / LaSalle | 51% | | 5 | | 1,590 | | 97.4% | | | 2,616 | | 4,417 | | 8,739 | | | 17,135 | |
| | | | | | | | | | | | | | | | | | |
Total | | | | 18 | | 4,427 | | 96.9% | | $ | 3,589 | $ | 15,083 | $ | 29,474 | | $ | 58,391 |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | ||||
| Gross Book Value | | | | | | Weighted | | | | | | | | | | | |
| of JV Real | Total Project | UDR's Equity | | Avg. Debt | | Debt | | | | | | | | ||||
Balance Sheet Characteristics | Estate Assets (3) | Debt (3) | Investment | | Interest Rate | | Maturities | | | | | | ||||||
| | | | | | | | | | | | | | | | | | |
UDR / MetLife | $ | 1,731,499 | $ | 853,603 | $ | 224,168 | | 3.78% | | 2024-2031 | | | | | | | | |
UDR / LaSalle | | 613,571 | | 45,187 | | 275,885 | | 5.88% | | 2028 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total | $ | 2,345,070 | $ | 898,790 | $ | 500,053 | | 3.89% | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | |
| | 2Q 24 vs. 2Q 23 Growth | | 2Q 24 vs. 1Q 24 Growth | | | | |||||||||||
Joint Venture Same-Store Growth (4) | Communities | Revenue | Expense | | NOI | | Revenue | Expense | NOI | | | |||||||
| | | | | | | | | | | | | | | | | | |
Combined JV Portfolio | 17 | 1.8% | 10.7% | | -2.7% | | 0.9% | -6.3% | 5.6% | | | |||||||
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |||||
| | YTD 24 vs. YTD 23 Growth | | | | | | | | | | | ||||||
Joint Venture Same-Store Growth (4) | Communities | Revenue | Expense | | NOI | | | | | | | | | | | |||
| | | | | | | | | | | | | | | | | | |
Combined JV Portfolio | 17 | 1.0% | 11.6% | | -4.5% | | | | | | | | | | | |||
| | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | Income/(Loss) | | | | | | | | ||
| | | UDR Investment (6) | | from Investments | | | | | | | | ||||||
Other Unconsolidated Investments (5) | | Commitment | Funded | Balance | | 2Q 24 (7) | | | | | | | | |||||
| | | | | | | | | | | | | | | | | | |
Total Real Estate Technology and Sustainability Investments | $ | 106,000 | $ | 58,029 | $ | 58,445 | | $ | (160) | | | | | | | |
(1) | See Attachment 14 for definitions and other terms. |
(2) | Represents NOI at 100% for the period ended June 30, 2024. |
(3) | Joint ventures and partnerships represented at 100%. Debt balances are presented net of deferred financing costs. |
(4) | Joint Venture Same-Store growth is presented at UDR's ownership interest. |
(5) | Other unconsolidated investments represent UDR’s investments in six real estate technology and climate technology funds. |
(6) | Investment commitment represents maximum equity and therefore excludes realized/unrealized gain/(loss). Investment funded represents cash funded towards the investment commitment. Investment balance includes amount funded plus realized/unrealized gain/(loss), less distributions received prior to the period end. |
(7) | Income/(loss) from investments is deducted/added back to FFOA. |
20
Attachment 10(B)
Developer Capital Program
June 30, 2024
(Dollars in Thousands)
(Unaudited) (1)
Developer Capital Program (2)(3) | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | # of | UDR Investment | Return | Years to | | Upside | ||||
Community | Location | | Homes | Commitment (3) | Balance (3) | Rate | Maturity (4) | | Participation | |||
| | | | | | | | | | | | |
Preferred Equity | | | | | | | | | | | | |
| | | | | | | | | | | | |
Junction | Santa Monica, CA | | 66 | $ | 13,910 | $ | 19,051 | 12.75% | 0.3 | | - | |
Thousand Oaks | Thousand Oaks, CA | | 142 | | 20,059 | | 28,472 | 9.0% | 0.6 | | Variable | |
Vernon Boulevard (5) | Queens, NY | | 534 | | 40,000 | | 66,596 | 13.0% | 1.0 | | Variable | |
Makers Rise | Herndon, VA | | 356 | | 30,208 | | 38,954 | 9.0% | 1.5 | | Variable | |
121 at Watters | Allen, TX | | 469 | | 19,843 | | 25,734 | 9.0% | 1.7 | | Variable | |
Infield Phase I | Kissimmee, FL | | 384 | | 16,044 | | 21,943 | 14.0% | 2.0 | | - | |
Meetinghouse | Portland, OR | | 232 | | 14,340 | | 16,091 | 9.0% | 2.6 | | - | |
Heirloom | Portland, OR | | 286 | | 20,642 | | 22,733 | 9.0% | 3.0 | | - | |
Upton Place | Washington, DC | | 689 | | 52,163 | | 65,677 | 9.7% | 3.4 | | - | |
Portfolio Recapitalization (6) | Various | | 2,460 | | 102,000 | | 102,660 | 8.0% | 5.0 | | - | |
| | | | | | | | | | | | |
Total - Preferred Equity | | | 5,618 | $ | 329,209 | $ | 407,911 | 9.7% | 2.9 | | | |
| | | | | | | | | | | | |
Loans | | | | | | | | | | | | |
| | | | | | | | | | | | |
1300 Fairmount | Philadelphia, PA | | 478 | $ | 71,393 | $ | 103,515 | 10.5% | 0.3 | | - | |
Menifee | Menifee, CA | | 237 | | 24,447 | | 27,579 | 11.0% | 2.5 | | - | |
Riverside | Riverside, CA | | 482 | | 59,676 | | 68,080 | 11.0% | 2.5 | | - | |
Total - Loans | | | 1,197 | $ | 155,516 | $ | 199,174 | 10.8% | 1.5 | | | |
| | | | | | | | | | | | |
Total - Developer Capital Program | | | 6,815 | $ | 484,725 | $ | 607,085 | 10.0% | 2.4 | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | 2Q 24 | | | | | | | | | | |
| | | | | | | | | | | | |
Income/(loss) from investments | | $ | 13,582 | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
(1) | See Attachment 14 for definitions and other terms. |
(2) | UDR's investments are reflected as investment in and advances to unconsolidated joint ventures or notes receivable, net on the Consolidated Balance Sheets and income/(loss) from unconsolidated entities or interest and other income/(expense), net on the Consolidated Statements of Operations in accordance with GAAP. |
(3) | Investment commitment represents maximum loan principal or equity investment and therefore excludes accrued return. Investment balance includes amount funded plus accrued and unpaid return prior to the period end. |
(4) | As of June 30, 2024, our preferred equity investment and loan portfolio had a weighted average term to maturity of 2.4 years, excluding extension options. In many cases, the maturity dates of our investments can be extended by up to three years, typically through multiple one year extensions, subject to certain conditions being satisfied. In addition, the maturity dates of our investments may differ from the maturity dates of the senior loans held by the ventures. |
(5) | Subsequent to quarter-end, UDR received a $17.2 million partial paydown of its preferred equity investment in Vernon Boulevard. In conjunction with the paydown, UDR's remaining $50.0 million preferred equity investment will earn a contractual return rate of 11.0%. |
(6) | A joint venture with 14 stabilized communities located in various markets. |
21
Attachment 11
Acquisitions, Dispositions and Developer Capital Program Investments Summary
June 30, 2024
(Dollars in Thousands)
(Unaudited) (1)
| | | | | | | | Post | | | | | | | | | |
| | | | | | Prior | | Transaction | | | | | | | | | |
| | | | | | Ownership | | Ownership | | | | | # of | Price per | |||
Date of Sale | | Community | | Location | | Interest | | Interest | | Price (2) | Debt (2) | | Homes | Home | |||
| | | | | | | | | | | | | | | | | |
Dispositions - Wholly-Owned | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Feb-24 | | Crescent Falls Church (3) | | Arlington, VA | | 100% | | 0% | | $ | 100,000 | $ | - | | 214 | $ | 467 |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | $ | 100,000 | $ | - | | 214 | $ | 467 |
| | | | | | | | | | | | | | | | | |
(1) | See Attachment 14 for definitions and other terms. |
(2) | Price represents 100% of the asset. Debt represents 100% of the asset's indebtedness, and excludes deferred financing costs. |
(3) | UDR recorded a gain on sale of approximately $16.9 million during the six months ended June 30, 2024, which is included in gain/(loss) on sale of real estate owned. |
22
Attachment 12
Capital Expenditure and Repair and Maintenance Summary
June 30, 2024
(In thousands, except Cost per Home)
(Unaudited) (1)
| | | Three Months | | | Six Months | | | |||
| | | Ended | Cost | | Ended | | Cost | |||
Capital Expenditures for Consolidated Homes (2) | | | June 30, 2024 | per Home | | June 30, 2024 | | per Home | |||
| | | | | | | | | | | |
Average number of homes (3) | | | | 55,283 | | | | | 55,318 | | |
| | | | | | | | | | | |
Total Recurring Cap Ex | | | $ | 25,160 | $ | 455 | | $ | 41,785 | $ | 755 |
| | | | | | | | | | | |
NOI Enhancing Cap Ex | | | | 21,024 | | 380 | | | 38,811 | | 702 |
| | | | | | | | | | | |
Total Recurring and NOI Enhancing Cap Ex | | | $ | 46,184 | $ | 835 | | $ | 80,596 | $ | 1,457 |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | Three Months | | | | Six Months | | | ||
| | | Ended | | Cost | | Ended | | Cost | ||
Repair and Maintenance for Consolidated Homes (Expensed) | | June 30, 2024 | | per Home | | June 30, 2024 | | per Home | |||
| | | | | | | | | | | |
Average number of homes (3) | | | | 55,283 | | | | | 55,318 | | |
| | | | | | | | | | | |
Total Repair and Maintenance | | | $ | 24,493 | $ | 443 | | $ | 49,468 | $ | 894 |
(1) | See Attachment 14 for definitions and other terms. |
(2) | Excludes redevelopment capital and initial capital expenditures on acquisitions. |
(3) | Average number of homes is calculated based on the number of homes owned at the end of each month. |
23
Attachment 13
3Q 2024 and Full-Year 2024 Guidance
June 30, 2024
(Unaudited) (1)
| | | | Full-Year 2024 Guidance | ||||
| | | | | | | | Change from |
Net Income, FFO, FFO as Adjusted and AFFO per Share and Unit Guidance | | 3Q 2024 | | Full-Year 2024 | | Prior Guidance | | Prior Midpoint |
| | | | | | | | |
Income/(loss) per weighted average common share, diluted | | $0.08 to $0.10 | | $0.35 to $0.43 | | $0.33 to $0.45 | | - |
FFO per common share and unit, diluted | | $0.60 to $0.62 | | $2.38 to $2.46 | | $2.36 to $2.48 | | - |
FFO as Adjusted per common share and unit, diluted | | $0.61 to $0.63 | | $2.42 to $2.50 | | $2.38 to $2.50 | | $0.02 |
Adjusted Funds from Operations ("AFFO") per common share and unit, diluted | | $0.54 to $0.56 | | $2.16 to $2.24 | | $2.12 to $2.24 | | $0.02 |
Weighted average number of common shares, OP/DownREIT Units, and common stock | | 357.1 | | 356.7 | | 356.7 | | - |
Annualized dividend per share and unit | | | | $1.70 | | $1.70 | | - |
| | | | | | | | |
| | | | | | | | Change from |
Same-Store Guidance (Straight-line basis) | | | | Full-Year 2024 | | Prior Guidance | | Prior Midpoint |
| | | | | | | | |
Revenue growth / (decline) | | | | 1.00% to 3.00% | | 0.00% to 3.00% | | 0.50% |
Expense growth | | | | 4.00% to 6.00% | | 4.25% to 6.25% | | -0.25% |
NOI growth / (decline) | | | | -0.25% to 1.75% | | -1.75% to 1.75% | | 0.75% |
| | | | | | | | |
| | | | | | | | Change from |
Sources of Funds ($ in millions) | | | | Full-Year 2024 | | Prior Guidance | | Prior Midpoint |
| | | | | | | | |
AFFO less Dividends | | | | $163 to $192 | | $149 to $192 | | $7 |
Debt Issuances/Assumptions and LOC Draw/(Paydown) | | | | $25 to $100 | | $25 to $150 | | ($25) |
Dispositions and Developer Capital Program maturities | | | | $100 to $150 | | $100 to $150 | | - |
| | | | | | | | |
| | | | | | | | Change from |
Uses of Funds ($ in millions) | | | | Full-Year 2024 | | Prior Guidance | | Prior Midpoint |
| | | | | | | | |
Debt maturities inclusive of principal amortization (2) | | | | $116 | | $116 | | - |
Development spending and land acquisitions | | | | $25 to $50 | | $25 to $50 | | - |
Redevelopment and other non-recurring | | | | $75 to $95 | | $70 to $100 | | - |
Developer Capital Program funding and senior loan payoff | | | | $15 | | $0 | | $15 |
Joint Venture Acquisitions (at share) | | | | $0 to $75 | | $0 to $150 | | ($37.5) |
NOI enhancing capital expenditures inclusive of Kitchen and Bath | | | | $60 to $80 | | $60 to $80 | | - |
| | | | | | | | |
| | | | | | | | Change from |
Other Additions/(Deductions) ($ in millions except per home amounts) | | | | Full-Year 2024 | | Prior Guidance | | Prior Midpoint |
| | | | | | | | |
Consolidated interest expense, net of capitalized interest and adjustments for FFO as Adjusted | | | | $190 to $194 | | $187 to $193 | | $2 |
Consolidated capitalized interest | | | | $7 to $11 | | $7 to $11 | | - |
General and administrative | | | | $68 to $72 | | $67 to $73 | | - |
Recurring capital expenditures per home | | | | $1,650 | | $1,650 | | - |
| | | | | | | | |
(1) | See Attachment 14 for definitions and other terms. |
(2) | Excludes short-term maturities related to the Company's unsecured commercial paper program. |
24
Attachment 14(A)
Definitions and Reconciliations
June 30, 2024
(Unaudited)
Acquired Communities: The Company defines Acquired Communities as those communities acquired by the Company, other than development and redevelopment activity, that did not achieve stabilization as of the most recent quarter.
Adjusted Funds from Operations ("AFFO") attributable to common stockholders and unitholders: The Company defines AFFO as FFO as Adjusted attributable to common stockholders and unitholders less recurring capital expenditures on consolidated communities that are necessary to help preserve the value of and maintain functionality at our communities.
Management considers AFFO a useful supplemental performance metric for investors as it is more indicative of the Company's operational performance than FFO or FFO as Adjusted. AFFO is not intended to represent cash flow or liquidity for the period, and is only intended to provide an additional measure of our operating performance. The Company believes that net income/(loss) attributable to common stockholders is the most directly comparable GAAP financial measure to AFFO. Management believes that AFFO is a widely recognized measure of the operations of REITs, and presenting AFFO enables investors to assess our performance in comparison to other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not always be comparable to AFFO calculated by other REITs. AFFO should not be considered as an alternative to net income/(loss) (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions. A reconciliation from net income/(loss) attributable to common stockholders to AFFO is provided on Attachment 2.
Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items: The Company defines Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items as Consolidated Interest Coverage Ratio - adjusted for non-recurring items divided by total consolidated interest, excluding the impact of costs associated with debt extinguishment, plus preferred dividends.
Management considers Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation of the components that comprise Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure.
Consolidated Interest Coverage Ratio - adjusted for non-recurring items: The Company defines Consolidated Interest Coverage Ratio - adjusted for non-recurring items as Consolidated EBITDAre – adjusted for non-recurring items divided by total consolidated interest, excluding the impact of costs associated with debt extinguishment.
Management considers Consolidated Interest Coverage Ratio - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation of the components that comprise Consolidated Interest Coverage Ratio - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure.
Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items: The Company defines Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items as total consolidated debt net of cash and cash equivalents divided by annualized Consolidated EBITDAre - adjusted for non-recurring items. Consolidated EBITDAre - adjusted for non-recurring items is defined as EBITDAre excluding the impact of income/(loss) from unconsolidated entities, adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures and other non-recurring items including, but not limited to casualty-related charges/(recoveries), net of wholly owned communities.
Management considers Consolidated Net Debt-to-EBITDAre - adjusted for non-recurring items a useful metric for investors as it provides ratings agencies, investors and lenders with a widely-used measure of the Company’s ability to service its consolidated debt obligations as well as compare leverage against that of its peer REITs. A reconciliation between net income/(loss) and Consolidated EBITDAre - adjusted for non-recurring items is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure.
Controllable Expenses: The Company refers to property operating and maintenance expenses as Controllable Expenses.
Development Communities: The Company defines Development Communities as those communities recently developed or under development by the Company, that are currently majority owned by the Company and have not achieved stabilization as of the most recent quarter.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre): The Company defines EBITDAre as net income/(loss) (computed in accordance with GAAP), plus interest expense, including costs associated with debt extinguishment, plus real estate depreciation and amortization, plus other depreciation and amortization, plus (minus) income tax provision/(benefit), net, (minus) plus net gain/(loss) on the sale of depreciable real estate owned, plus impairment write-downs of depreciable real estate, plus the adjustments to reflect the Company’s share of EBITDAre of unconsolidated joint ventures. The Company computes EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts, or Nareit, which may not be comparable to EBITDAre reported by other REITs that do not compute EBITDAre in accordance with the Nareit definition, or that interpret the Nareit definition differently than the Company does. The White Paper on EBITDAre was approved by the Board of Governors of Nareit in September 2017.
Management considers EBITDAre a useful metric for investors as it provides an additional indicator of the Company’s ability to incur and service debt, and enables investors to assess our performance against that of its peer REITs. EBITDAre should be considered along with, but not as an alternative to, net income and cash flow as a measure of the Company’s activities in accordance with GAAP. EBITDAre does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of funds available to fund our cash needs. A reconciliation between net income/(loss) and EBITDAre is provided on Attachment 4(C) of the Company's quarterly supplemental disclosure.
Effective Blended Lease Rate Growth: The Company defines Effective Blended Lease Rate Growth as the combined proportional growth as a result of Effective New Lease Rate Growth and Effective Renewal Lease Rate Growth. Management considers Effective Blended Lease Rate Growth a useful metric for investors as it assesses combined proportional market-level, new and in-place demand trends.
Effective New Lease Rate Growth: The Company defines Effective New Lease Rate Growth as the increase in gross potential rent realized less concessions on a straight-line basis for the new lease term (current effective rent) versus prior resident effective rent for the prior lease term on new leases commenced during the current quarter. Management considers Effective New Lease Rate Growth a useful metric for investors as it assesses market-level new demand trends.
Effective Renewal Lease Rate Growth: The Company defines Effective Renewal Lease Rate Growth as the increase in gross potential rent realized less concessions on a straight-line basis for the new lease term (current effective rent) versus prior effective rent for the prior lease term on renewed leases commenced during the current quarter. Management considers Effective Renewal Lease Rate Growth a useful metric for investors as it assesses market-level, in-place demand trends.
Estimated Quarter of Completion: The Company defines Estimated Quarter of Completion of a development or redevelopment project as the date on which construction is expected to be completed, but it does not represent the date of stabilization.
25
Attachment 14(B)
Definitions and Reconciliations
June 30, 2024
(Unaudited)
Funds from Operations as Adjusted ("FFO as Adjusted") attributable to common stockholders and unitholders: The Company defines FFO as Adjusted attributable to common stockholders and unitholders as FFO excluding the impact of other non-comparable items including, but not limited to, acquisition-related costs, prepayment costs/benefits associated with early debt retirement, impairment write-downs or gains and losses on sales of real estate or other assets incidental to the main business of the Company and income taxes directly associated with those gains and losses, casualty-related expenses and recoveries, severance costs and legal and other costs.
Management believes that FFO as Adjusted is useful supplemental information regarding our operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. FFO as Adjusted is not intended to represent cash flow or liquidity for the period, and is only intended to provide an additional measure of our operating performance. The Company believes that net income/(loss) attributable to common stockholders is the most directly comparable GAAP financial measure to FFO as Adjusted. However, other REITs may use different methodologies for calculating FFO as Adjusted or similar FFO measures and, accordingly, our FFO as Adjusted may not always be comparable to FFO as Adjusted or similar FFO measures calculated by other REITs. FFO as Adjusted should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of financial performance, or as an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity. A reconciliation from net income attributable to common stockholders to FFO as Adjusted is provided on Attachment 2.
Funds from Operations ("FFO") attributable to common stockholders and unitholders: The Company defines FFO attributable to common stockholders and unitholders as net income/(loss) attributable to common stockholders (computed in accordance with GAAP), excluding impairment write-downs of depreciable real estate related to the main business of the Company or of investments in non-consolidated investees that are directly attributable to decreases in the fair value of depreciable real estate held by the investee, gains and losses from sales of depreciable real estate related to the main business of the Company and income taxes directly associated with those gains and losses, plus real estate depreciation and amortization, and after adjustments for noncontrolling interests, and the Company’s share of unconsolidated partnerships and joint ventures. This definition conforms with the National Association of Real Estate Investment Trust's definition issued in April 2002 and restated in November 2018. In the computation of diluted FFO, if OP Units, DownREIT Units, unvested restricted stock, unvested LTIP Units, stock options, and the shares of Series E Cumulative Convertible Preferred Stock are dilutive, they are included in the diluted share count.
Management considers FFO a useful metric for investors as the Company uses FFO in evaluating property acquisitions and its operating performance and believes that FFO should be considered along with, but not as an alternative to, net income and cash flow as a measure of the Company's activities in accordance with GAAP. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of funds available to fund our cash needs. A reconciliation from net income/(loss) attributable to common stockholders to FFO is provided on Attachment 2.
Held For Disposition Communities: The Company defines Held for Disposition Communities as those communities that were held for sale as of the end of the most recent quarter.
Joint Venture Reconciliation at UDR's weighted average ownership interest:
In thousands | | | | | 2Q 2024 | | YTD 2024 | | | | ||
Income/(loss) from unconsolidated entities | | | | | $ | 4,046 | | $ | 13,131 | | | |
Management fee | | | | | | 861 | | | 1,699 | | | |
Interest expense | | | | | | 4,466 | | | 8,938 | | | |
Depreciation | | | | | | 13,768 | | | 27,461 | | | |
General and administrative | | | | | | 192 | | | 349 | | | |
Developer Capital Program (excludes loans) | | | | | | (8,436) | | | (16,599) | | | |
Other (income)/expense | | | | | | (3) | | | (48) | | | |
Realized and unrealized (gain)/loss on real estate technology investments, net of tax | | | | | | 189 | | | (5,457) | | | |
Total Joint Venture NOI at UDR's Ownership Interest | | | $ | 15,083 | | $ | 29,474 | | | |
Net Operating Income (“NOI”): The Company defines NOI as rental income less direct property rental expenses. Rental income represents gross market rent and other revenues less adjustments for concessions, vacancy loss and bad debt. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI is property management expense, which is calculated as 3.25% of property revenue, and land rent. Property management expense covers costs directly related to consolidated property operations, inclusive of corporate management, regional supervision, accounting and other costs.
Management considers NOI a useful metric for investors as it is a more meaningful representation of a community’s continuing operating performance than net income as it is prior to corporate-level expense allocations, general and administrative costs, capital structure and depreciation and amortization and is a widely used input, along with capitalization rates, in the determination of real estate valuations. A reconciliation from net income/(loss) attributable to UDR, Inc. to NOI is provided below.
In thousands | 2Q 2024 | 1Q 2024 | 4Q 2023 | | 3Q 2023 | 2Q 2023 | | |||||
Net income/(loss) attributable to UDR, Inc. | $ | 28,883 | $ | 43,149 | $ | 32,986 | | $ | 32,858 | $ | 347,545 | |
Property management | | 13,433 | | 13,379 | | 13,354 | | | 13,271 | | 13,101 | |
Other operating expenses | | 7,593 | | 6,828 | | 8,320 | | | 4,611 | | 4,259 | |
Real estate depreciation and amortization | | 170,488 | | 169,858 | | 170,643 | | | 167,551 | | 168,925 | |
Interest expense | | 47,811 | | 48,062 | | 47,347 | | | 44,664 | | 45,113 | |
Casualty-related charges/(recoveries), net | | 998 | | 6,278 | | (224) | | | (1,928) | | 1,134 | |
General and administrative | | 20,136 | | 17,810 | | 20,838 | | | 15,159 | | 16,452 | |
Tax provision/(benefit), net | | 386 | | 337 | | 93 | | | 428 | | 1,351 | |
(Income)/loss from unconsolidated entities | | (4,046) | | (9,085) | | 20,219 | | | (5,508) | | (9,697) | |
Interest income and other (income)/expense, net | | (6,498) | | (5,865) | | (9,371) | | | 3,069 | | (10,447) | |
Joint venture management and other fees | | (1,992) | | (1,965) | | (2,379) | | | (1,772) | | (1,450) | |
Other depreciation and amortization | | 4,679 | | 4,316 | | 4,397 | | | 3,692 | | 3,681 | |
(Gain)/loss on sale of real estate owned | | - | | (16,867) | | (25,308) | | | - | | (325,884) | |
Net income/(loss) attributable to noncontrolling interests | | 2,130 | | 3,161 | | 2,975 | | | 2,561 | | 22,638 | |
Total consolidated NOI | $ | 284,001 | $ | 279,396 | $ | 283,890 | | $ | 278,656 | $ | 276,721 | |
26
Attachment 14(C)
Definitions and Reconciliations
June 30, 2024
(Unaudited)
NOI Enhancing Capital Expenditures ("Cap Ex"): The Company defines NOI Enhancing Capital Expenditures as expenditures that result in increased income generation or decreased expense growth over time.
Management considers NOI Enhancing Capital Expenditures a useful metric for investors as it quantifies the amount of capital expenditures that are expected to grow, not just maintain, revenues or to decrease expenses.
Non-Mature Communities: The Company defines Non-Mature Communities as those communities that have not met the criteria to be included in same-store communities.
Non-Residential / Other: The Company defines Non-Residential / Other as non-apartment components of mixed-use properties, land held, properties being prepared for redevelopment and properties where a material change in home count has occurred.
Other Markets: The Company defines Other Markets as the accumulation of individual markets where it operates less than 1,000 Same-Store homes. Management considers Other Markets a useful metric as the operating results for the individual markets are not representative of the fundamentals for those markets as a whole.
Physical Occupancy: The Company defines Physical Occupancy as the number of occupied homes divided by the total homes available at a community.
QTD Same-Store Communities: The Company defines QTD Same-Store Communities as those communities Stabilized for five full consecutive quarters. These communities were owned and had stabilized operating expenses as of the beginning of the quarter in the prior year, were not in process of any substantial redevelopment activities, and were not held for disposition.
Recurring Capital Expenditures: The Company defines Recurring Capital Expenditures as expenditures that are necessary to help preserve the value of and maintain functionality at its communities.
Redevelopment Communities: The Company generally defines Redevelopment Communities as those communities where substantial redevelopment is in progress. Based upon the level of material impact the redevelopment has on the community (operations, occupancy levels, and future rental rates), the community may or may not maintain Stabilization. As such, for each redevelopment, the Company assesses whether the community remains in Same-Store.
Sold Communities: The Company defines Sold Communities as those communities that were disposed of prior to the end of the most recent quarter.
Stabilization/Stabilized: The Company defines Stabilization/Stabilized as when a community’s occupancy reaches 90% or above for at least three consecutive months.
Stabilized, Non-Mature Communities: The Company defines Stabilized, Non-Mature Communities as those communities that have reached Stabilization but are not yet in the same-store portfolio.
Total Revenue per Occupied Home: The Company defines Total Revenue per Occupied Home as rental and other revenues with concessions reported on a straight-line basis, divided by the product of occupancy and the number of apartment homes.
Management considers Total Revenue per Occupied Home a useful metric for investors as it serves as a proxy for portfolio quality, both geographic and physical.
TRS: The Company’s taxable REIT subsidiaries (“TRS”) focus on making investments and providing services that are otherwise not allowed to be made or provided by a REIT.
YTD Same-Store Communities: The Company defines YTD Same-Store Communities as those communities Stabilized for two full consecutive calendar years. These communities were owned and had stabilized operating expenses as of the beginning of the prior year, were not in process of any substantial redevelopment activities, and were not held for disposition.
27
Attachment 14(D)
Definitions and Reconciliations
June 30, 2024
(Unaudited)
All guidance is based on current expectations of future economic conditions and the judgment of the Company's management team. The following reconciles from GAAP Net income/(loss) per share for full-year 2024 and third quarter of 2024 to forecasted FFO, FFO as Adjusted and AFFO per share and unit:
| | | | | Full-Year 2024 | | | ||||
| | | | | Low | | High | | | ||
| | | | | | | | | | | |
Forecasted net income per diluted share | | | | | $ | 0.35 | | $ | 0.43 | | |
Conversion from GAAP share count | | | | | | (0.02) | | | (0.02) | | |
Net gain on the sale of depreciable real estate owned | | | | | | (0.05) | | | (0.05) | | |
Depreciation | | | | | | 2.07 | | | 2.07 | | |
Noncontrolling interests | | | | | | 0.02 | | | 0.02 | | |
Preferred dividends | | | | | | 0.01 | | | 0.01 | | |
Forecasted FFO per diluted share and unit | | | | | $ | 2.38 | | $ | 2.46 | | |
Legal and other costs | | | | | | 0.02 | | | 0.02 | | |
Severance costs and other restructuring expense | | | | | | 0.01 | | | 0.01 | | |
Casualty-related charges/(recoveries) | | | | | | 0.02 | | | 0.02 | | |
Realized/unrealized (gain)/loss on real estate technology investments | | | | | | (0.01) | | | (0.01) | | |
Forecasted FFO as Adjusted per diluted share and unit | | | | | $ | 2.42 | | $ | 2.50 | | |
Recurring capital expenditures | | | | | | (0.26) | | | (0.26) | | |
Forecasted AFFO per diluted share and unit | | | | | $ | 2.16 | | $ | 2.24 | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | 3Q 2024 | | | ||||
| | | | | Low | | High | | | ||
| | | | | | | | | | | |
Forecasted net income per diluted share | | | | | $ | 0.08 | | $ | 0.10 | | |
Conversion from GAAP share count | | | | | | (0.01) | | | (0.01) | | |
Depreciation | | | | | | 0.52 | | | 0.52 | | |
Noncontrolling interests | | | | | | 0.01 | | | 0.01 | | |
Preferred dividends | | | | | | - | | | - | | |
Forecasted FFO per diluted share and unit | | | | | $ | 0.60 | | $ | 0.62 | | |
Legal and other costs | | | | | | - | | | - | | |
Severance costs and other restructuring expense | | | | | | 0.01 | | | 0.01 | | |
Casualty-related charges/(recoveries) | | | | | | - | | | - | | |
Realized/unrealized (gain)/loss on real estate technology investments | | | | | | - | | | - | | |
Forecasted FFO as Adjusted per diluted share and unit | | | | | $ | 0.61 | | $ | 0.63 | | |
Recurring capital expenditures | | | | | | (0.07) | | | (0.07) | | |
Forecasted AFFO per diluted share and unit | | | | | $ | 0.54 | | $ | 0.56 | | |
28
Forward Looking Statements
June 30, 2024
(Unaudited)
Forward-Looking Statements
Certain statements made in this supplement may constitute “forward-looking statements.” Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “estimates” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors, which include, but are not limited to, general market and economic conditions, unfavorable changes in the apartment market and economic conditions that could adversely affect occupancy levels and rental rates, the impact of inflation/deflation on rental rates and property operating expenses, the availability of capital and the stability of the capital markets, rising interest rates, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule or at expected rent and occupancy levels, changes in job growth, home affordability and demand/supply ratio for multifamily housing, development and construction risks that may impact profitability, risks that joint ventures with third parties and DCP investments do not perform as expected, the failure of automation or technology to help grow net operating income, and other risk factors discussed in documents filed by the Company with the SEC from time to time, including the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking statements. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this supplement, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the U.S. securities laws.
29
Document and Entity Information |
Jul. 30, 2024 |
---|---|
Document and Entity Information [Abstract] | |
Document Type | 8-K |
Document Period End Date | Jul. 30, 2024 |
Entity Registrant Name | UDR, Inc. |
Entity Incorporation, State or Country Code | MD |
Entity File Number | 1-10524 |
Entity Tax Identification Number | 54-0857512 |
Entity Address, Address Line One | 1745 Shea Center Drive, Suite 200 |
Entity Address, City or Town | Highlands Ranch |
Entity Address, State or Province | CO |
Entity Address, Postal Zip Code | 80129 |
City Area Code | 720 |
Local Phone Number | 283-6120 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock |
Trading Symbol | UDR |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000074208 |
Amendment Flag | false |
1 Year UDR Chart |
1 Month UDR Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions