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
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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 April 26, 2023, UDR, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2023. 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. | ||||
April 26, 2023 | By: | /s/ Joseph D. Fisher | ||
Joseph D. Fisher | ||||
President and Chief Financial Officer | ||||
(Principal Financial Officer) | ||||
UDR ANNOUNCES FIRST QUARTER 2023 RESULTS
UDR, Inc. (the “Company”) (NYSE: UDR), announced today its first quarter 2023 results. Net Income, Funds from Operations (“FFO”), FFO as Adjusted (“FFOA”), and Adjusted FFO (“AFFO”) per diluted share for the quarter ended March 31, 2023 are detailed below.
Quarter Ended March 31 | ||||||
Metric | 1Q 2023 Actual | 1Q 2023 Guidance | 1Q 2022 Actual | $ Change vs. Prior Year Period | % Change vs. Prior Year Period | |
Net Income per diluted share | $0.09 | $0.10 to $0.12 | $0.04 | $0.05 | 125% | |
FFO per diluted share | $0.59 | $0.59 to $0.61 | $0.54 | $0.05 | 9% | |
FFOA per diluted share | $0.60 | $0.59 to $0.61 | $0.55 | $0.05 | 9% | |
AFFO per diluted share | $0.57 | $0.56 to $0.58 | $0.51 | $0.06 | 12% | |
| ● | Same-Store (“SS”) results for the first quarter 2023 versus the first quarter 2022 and the fourth quarter 2022 are summarized below. |
| Concessions reflected on a straight-line basis: | Concessions reflected on a cash basis: | ||
SS Growth / (Decline) | Year-Over-Year (“YOY”): 1Q 2023 vs. 1Q 2022 | Sequential: 1Q 2023 vs. 4Q 2022 | YOY: 1Q 2023 vs. 1Q 2022 | Sequential: 1Q 2023 vs. 4Q 2022 |
Revenue | 9.6% | (0.3)% | 8.2% | 0.0% |
Expense | 5.1% | 0.4% | 5.1% | 0.4% |
Net Operating Income (“NOI”) | 11.7% | (0.6)% | 9.5% | (0.2)% |
| ● | During the first quarter, the Company: |
| o | Completed construction of The MO, a $145.0 million, 300-home apartment community in Washington, D.C. |
| o | Achieved stabilization on two development communities; Vitruvian West Phase 3, a $74.0 million, 405-home apartment community in Dallas, TX; and The George Apartments, a $68.0 million, 200-home apartment community in Philadelphia, PA. |
“Our first quarter results, including 9 percent FFOA per share growth and nearly 12 percent same-store NOI growth over the prior year period, demonstrate the strength of our strategy and platform,” said Tom Toomey, UDR’s Chairman and CEO. “We are optimistic on the growth trajectory and resiliency of our business moving forward and continue to focus on what we can control: disciplined capital allocation to opportunistically create shareholder value, new and innovative initiatives to drive further margin expansion, and an investment-grade balance sheet with well-laddered maturities and plentiful liquidity.”
1
Outlook
For the full-year 2023, the Company has reaffirmed its prior FFOA per share, AFFO per share, and same-store growth guidance ranges. For the second quarter 2023, the Company has established the following guidance ranges(1):
| 2Q 2023 Outlook | 1Q 2023 Actual | Full-Year 2023 Outlook | Full-Year 2023 Midpoint | |
Net Income per diluted share | $0.11 to $0.13 | $0.09 | $0.47 to $0.55 | $0.51 | |
FFO per diluted share | $0.60 to $0.62 | $0.59 | $2.44 to $2.52 | $2.48 | |
FFOA per diluted share | $0.60 to $0.62 | $0.60 | $2.45 to $2.53 | $2.49 | |
AFFO per diluted share | $0.54 to $0.56 | $0.57 | $2.22 to $2.30 | $2.26 | |
YOY Growth: concessions reflected on a straight-line basis: | |||||
SS Revenue | N/A | 9.6% | 5.75% to 7.75% | 6.75% | |
SS Expense | N/A | 5.1% | 4.0% to 5.5% | 4.75% | |
SS NOI | N/A | 11.7% | 6.25% to 8.75% | 7.50% | |
YOY Growth: concessions reflected on a cash basis: | |||||
SS Revenue | N/A | 8.2% | 5.5% to 7.5% | 6.50% | |
SS NOI | N/A | 9.5% | 6.0% to 8.5% | 7.25% | |
(1) | Additional assumptions for the Company’s second quarter and full-year 2023 outlook can be found on Attachment 13 of the Company’s related quarterly Supplemental Financial Information (“Supplement”). A reconciliation of FFO per share, FFOA per share, and AFFO per share to GAAP Net Income 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. |
First Quarter 2023 Operating Results
In the first quarter, total revenue increased by $42.3 million YOY, or 11.8 percent, to $399.5 million. This increase was primarily attributable to growth in revenue from Same-Store communities and past accretive external growth investments.
“Stable demand for UDR apartment homes enabled us to achieve 3.5% blended lease rate growth during the first quarter, which was in-line with our expectations,” said Mike Lacy, UDR’s Senior Vice President of Operations. “Resident rent-to-income levels across our portfolio remain in-line with historical norms, and the relative affordability of apartments versus single family housing is as favorable as it has been at nearly any point over the past 20 years.”
For the first quarter 2023, the Company recorded a residential bad debt reserve of $6.1 million, including $0.5 million for the Company’s share from unconsolidated joint ventures, a decrease of $2.6 million versus the Company’s bad debt reserve as of the end of the fourth quarter 2022. This compares to a quarter-end accounts receivable balance of $16.9 million, a decrease of $3.7 million versus the Company’s accounts receivable balance as of the end of the fourth quarter 2022.
2
In the tables below, the Company has presented YOY and sequential Same-Store results by region, with concessions accounted for on both cash and straight-line bases.
Summary of Same-Store Results in First Quarter 2023 versus First Quarter 2022
Region | Revenue Growth | Expense Growth | NOI Growth | % of Same-Store Portfolio(1) | Physical Occupancy(2) | YOY Change in Occupancy |
West | 6.5% | 2.1% | 8.0% | 32.1% | 96.4% | (0.6)% |
Mid-Atlantic | 6.3% | 2.8% | 7.9% | 21.2% | 96.6% | (0.5)% |
Northeast | 8.8% | 4.3% | 11.3% | 17.5% | 97.1% | (0.3)% |
Southeast | 12.8% | 9.8% | 14.3% | 13.8% | 96.1% | (1.1)% |
Southwest | 10.6% | 12.3% | 9.6% | 8.6% | 96.6% | (0.5)% |
Other Markets | 6.7% | 3.0% | 8.2% | 6.8% | 97.0% | 0.0% |
Total (Cash) | 8.2% | 5.1% | 9.5% | 100.0% | 96.6% | (0.5)% |
Total (Straight-Line) | 9.6% | 5.1% | 11.7% | - | - | - |
(1) | Based on 1Q 2023 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 First Quarter 2023 versus Fourth Quarter 2022
Region | Revenue Growth / (Decline) | Expense Growth / (Decline) | NOI Growth / (Decline) | % of Same-Store Portfolio(1) | Physical Occupancy(2) | Sequential Change in Occupancy |
West | 0.2% | (4.6)% | 1.8% | 32.1% | 96.4% | (0.1)% |
Mid-Atlantic | 0.4% | (0.6)% | 0.8% | 21.2% | 96.6% | (0.3)% |
Northeast | 0.1% | 5.0% | (2.3)% | 17.5% | 97.1% | 0.0% |
Southeast | (0.3)% | 3.1% | (1.7)% | 13.8% | 96.1% | (0.5)% |
Southwest | (0.7)% | 5.7% | (4.2)% | 8.6% | 96.6% | (0.2)% |
Other Markets | (1.3)% | (6.6)% | 0.8% | 6.8% | 97.0% | 0.4% |
Total (Cash) | 0.0% | 0.4% | (0.2)% | 100.0% | 96.6% | (0.1)% |
Total (Straight-Line) | (0.3)% | 0.4% | (0.6)% | - | - | - |
(1) | Based on 1Q 2023 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. |
Development Activity and Other Projects
During the first quarter, the Company completed construction of The MO, a $145.0 million, 300-home apartment community in Washington, D.C. Additionally, the Company achieved stabilization on two development communities; Vitruvian West Phase 3, a $74.0 million, 405-home apartment community in Dallas, TX; and The George Apartments, a $68.0 million, 200-home apartment community in Philadelphia, PA.
At the end of the first quarter, the Company’s development pipeline totaled $187.5 million and was 41 percent funded. The Company’s active development pipeline includes two communities, one each in the Addison submarket of Dallas, TX, and Tampa, FL, for a combined total of 415 apartment homes.
At the end of the first quarter, the Company’s redevelopment pipeline of 1,623 apartment homes, which includes a densification project that features the addition of 30 new apartment homes at one community, totaled $88.6 million and was 35 percent funded.
Developer Capital Program (“DCP”) Portfolio
At the end of the first quarter, the Company’s commitments under its DCP platform totaled $479.7 million with a weighted average return rate of 9.7 percent and a weighted average estimated remaining term of 3.5 years.
3
Capital Markets and Balance Sheet Activity
“Our balance sheet remains in excellent shape with net Debt-to-EBITDAre at 5.7x and below pre-COVID levels, minimal committed forward funding obligations, strong next 3-year liquidity, and only 2 percent of total debt scheduled to mature through 2024, after excluding amounts on our commercial paper program,” said Joe Fisher, UDR’s President and Chief Financial Officer.
The Company’s total indebtedness as of March 31, 2023 was $5.6 billion with no remaining consolidated maturities until 2024, excluding principal amortization and amounts on the Company’s commercial paper program. As of March 31, 2023, the Company had $957.4 million of 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 March 31, 2023 and the comparable prior year period.
| Quarter Ended March 31 | ||
Balance Sheet Metric | 1Q 2023 | 1Q 2022 | Change |
Weighted Average Interest Rate | 3.25% | 2.80% | 0.45% |
Weighted Average Years to Maturity(1) | 6.3 | 7.4 | (1.1) |
Consolidated Fixed Charge Coverage Ratio | 5.2x | 5.3x | (0.1)x |
Consolidated Debt as a percentage of Total Assets | 33.0% | 34.3% | (1.3)% |
Consolidated Net Debt-to-EBITDAre | 5.7x | 6.4x | (0.7)x |
| (1) | If the Company’s commercial paper balance was refinanced using its line of credit, the weighted average years to maturity would have been 6.5 years without extensions and 6.6 years with extensions for 1Q 2023 and 7.6 years with and without extensions for 1Q 2022. |
ESG
As previously announced, during the quarter, the Company was named to Newsweek’s annual list of America’s Most Responsible Companies for the second consecutive year. Additionally, the Company was named to the list of America’s Most JUST Companies by JUST Capital for the fifth consecutive year. These distinctions reflect the Company’s comprehensive ESG program, innovative and adaptive culture, and commitment to corporate responsibility.
Dividend
As previously announced, the Company’s Board of Directors declared a regular quarterly dividend on its common stock for the first quarter 2023 in the amount of $0.42 per share, a 10.5 percent increase over the comparable period in 2022. The dividend will be paid in cash on May 1, 2023 to UDR common shareholders of record as of April 10, 2023. The first quarter 2023 dividend will represent the 202nd consecutive quarterly dividend paid by the Company on its common stock.
Supplemental 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 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 April 27, 2023, to discuss first quarter results as well as high-level views for 2023. The webcast will be available on UDR'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.
4
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 May 27, 2023, by dialing 844-512-2921 for domestic and 412-317-6671 for international and entering the confirmation number, 13737748, when prompted for the passcode. A replay of the call will also be available for 30 days on UDR'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 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,” “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, including as a result of COVID-19, 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 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 March 31, 2023, UDR owned or had an ownership position in 58,411 apartment homes including 415 homes under development. For over 50 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.
5
Exhibit 99.2
Financial Highlights
UDR, Inc.
As of End of First Quarter 2023
(Unaudited) (1)
| | | | Actual Results | | | | Guidance for | ||
Dollars in thousands, except per share and unit | | | | 1Q 2023 | | | | 2Q 2023 | | Full-Year 2023 |
| | | | | | | | | | |
GAAP Metrics | | | | | | | | | | |
Net income/(loss) attributable to UDR, Inc. | | | | $30,964 | | | | -- | | -- |
Net income/(loss) attributable to common stockholders | | | | $29,781 | | | | -- | | -- |
Income/(loss) per weighted average common share, diluted | | | | $0.09 | | | | $0.11 to $0.13 | | $0.47 to $0.55 |
| | | | | | | | | | |
Per Share Metrics | | | | | | | | | | |
FFO per common share and unit, diluted | | | | $0.59 | | | | $0.60 to $0.62 | | $2.44 to $2.52 |
FFO as Adjusted per common share and unit, diluted | | | | $0.60 | | | | $0.60 to $0.62 | | $2.45 to $2.53 |
Adjusted Funds from Operations ("AFFO") per common share and unit, diluted | | | | $0.57 | | | | $0.54 to $0.56 | | $2.22 to $2.30 |
Dividend declared per share and unit | | | | $0.42 | | | | $0.42 | | $1.68 (2) |
| | | | | | | | | | |
Same-Store Operating Metrics | | | | | | | | | | |
Revenue growth/(decline) (Cash basis) | | | | 8.2% | | | | -- | | 5.50% to 7.50% |
Revenue growth/(decline) (Straight-line basis) | | | | 9.6% | | | | -- | | 5.75% to 7.75% |
Expense growth | | | | 5.1% | | | | -- | | 4.00% to 5.50% |
NOI growth/(decline) (Cash basis) | | | | 9.5% | | | | -- | | 6.00% to 8.50% |
NOI growth/(decline) (Straight-line basis) | | | | 11.7% | | | | -- | | 6.25% to 8.75% |
Physical Occupancy | | | | 96.6% | | | | -- | | -- |
| | | | | | | | | | |
| | | | | | | | | | |
Property Metrics | | | | Homes | | Communities | | % of Total NOI | | |
Same-Store | | | | 53,173 | | 159 | | 92.8% | | |
Stabilized, Non-Mature | | | | 1,174 | | 4 | | 1.7% | | |
Development | | | | 812 | | 3 | | 0.1% | | |
Non-Residential / Other | | | | N/A | | N/A | | 1.6% | | |
Joint Venture (3) | | | | 2,837 | | 13 | | 3.8% | | |
Total completed homes | | | | 57,996 | | 179 | | 100% | | |
Under Development | | | | 415 | | 2 | | - | | |
Total Quarter-end homes (3)(4) | | | | 58,411 | | 181 | | 100% | | |
| | | | | | | | | | |
| | | | | | | | | | |
Balance Sheet Metrics (adjusted for non-recurring items) | | | | 1Q 2023 | | 1Q 2022 | | | | |
Consolidated Interest Coverage Ratio | | | | 5.3x | | 5.5x | | | | |
Consolidated Fixed Charge Coverage Ratio | | | | 5.2x | | 5.3x | | | | |
Consolidated Debt as a percentage of Total Assets | | | | 33.0% | | 34.3% | | | | |
Consolidated Net Debt-to-EBITDAre | | | | 5.7x | | 6.4x | | | | |
| | | | | | | | | | |
| (1) | See Attachment 14 for definitions, other terms and reconciliations. |
| (2) | Annualized for 2023. |
| (3) | Joint venture NOI is based on UDR's share. Homes and communities at 100%. |
| (4) | Excludes 6,981 homes that are part of the Developer Capital Program as described in Attachment 11(B). |
1
Attachment 1
UDR, Inc.
Consolidated Statements of Operations
(Unaudited) (1)
| | Three Months Ended | ||||
| | March 31, | ||||
In thousands, except per share amounts | | 2023 |
| 2022 | ||
| | | | | | |
REVENUES: | | | | | | |
Rental income (2) | | $ | 398,307 | | $ | 356,181 |
Joint venture management and other fees | | | 1,242 | | | 1,085 |
Total revenues | | | 399,549 | | | 357,266 |
| | | | | | |
OPERATING EXPENSES: | | | | | | |
Property operating and maintenance | | | 64,834 | | | 58,484 |
Real estate taxes and insurance | | | 57,970 | | | 53,764 |
Property management | | | 12,945 | | | 11,576 |
Other operating expenses | | | 3,032 | | | 4,712 |
Real estate depreciation and amortization | | | 169,300 | | | 163,622 |
General and administrative | | | 17,480 | | | 14,908 |
Casualty-related charges/(recoveries), net | | | 4,156 | | | (765) |
Other depreciation and amortization | | | 3,649 | | | 3,075 |
Total operating expenses | | | 333,366 | | | 309,376 |
| | | | | | |
Gain/(loss) on sale of real estate owned | | | 1 | | | - |
Operating income | | | 66,184 | | | 47,890 |
| | | | | | |
Income/(loss) from unconsolidated entities (2) | | | 9,707 | | | 5,412 |
Interest expense | | | (43,742) | | | (35,916) |
Interest income and other income/(expense), net | | | 1,010 | | | (2,440) |
| | | | | | |
Income/(loss) before income taxes | | | 33,159 | | | 14,946 |
Tax (provision)/benefit, net | | | (234) | | | (343) |
| | | | | | |
Net Income/(loss) | | | 32,925 | | | 14,603 |
Net (income)/loss attributable to redeemable noncontrolling interests in the OP and DownREIT Partnership | | | (1,953) | | | (879) |
Net (income)/loss attributable to noncontrolling interests | | | (8) | | | (19) |
| | | | | | |
Net income/(loss) attributable to UDR, Inc. | | | 30,964 | | | 13,705 |
Distributions to preferred stockholders - Series E (Convertible) | | | (1,183) | | | (1,092) |
| | | | | | |
Net income/(loss) attributable to common stockholders | | $ | 29,781 | | $ | 12,613 |
| | | | | | |
| | | | | | |
Income/(loss) per weighted average common share - basic: | | | $0.09 | | | $0.04 |
Income/(loss) per weighted average common share - diluted: | | | $0.09 | | | $0.04 |
| | | | | | |
Common distributions declared per share | | | $0.42 | | | $0.38 |
| | | | | | |
Weighted average number of common shares outstanding - basic | | | 328,789 | | | 318,009 |
Weighted average number of common shares outstanding - diluted | | | 329,421 | | | 319,680 |
| (1) | See Attachment 14 for definitions and other terms. |
| (2) | During the three months ended March 31, 2023, UDR decreased its residential reserve to $6.1 million, including $0.5 million for UDR’s share from unconsolidated joint ventures, which compares to a combined quarter-end accounts receivable balance of $16.9 million. The remaining unreserved amount is based on probability of collection. |
2
Attachment 2
UDR, Inc.
Funds From Operations
(Unaudited) (1)
| | Three Months Ended | ||||
| | March 31, | ||||
In thousands, except per share and unit amounts | | | 2023 |
| 2022 | |
| | | | | | |
Net income/(loss) attributable to common stockholders | | $ | 29,781 | | $ | 12,613 |
| | | | | | |
Real estate depreciation and amortization | | | 169,300 | | | 163,622 |
Noncontrolling interests | | | 1,961 | | | 898 |
Real estate depreciation and amortization on unconsolidated joint ventures | | | 7,485 | | | 7,624 |
Net gain on the sale of depreciable real estate owned, net of tax | | | (1) | | | - |
Funds from operations ("FFO") attributable to common stockholders and unitholders, basic | | $ | 208,526 | | $ | 184,757 |
| | | | | | |
Distributions to preferred stockholders - Series E (Convertible) (2) | | | 1,183 | | | 1,092 |
| | | | | | |
FFO attributable to common stockholders and unitholders, diluted | | $ | 209,709 | | $ | 185,849 |
| | | | | | |
FFO per weighted average common share and unit, basic | | $ | 0.60 | | $ | 0.54 |
FFO per weighted average common share and unit, diluted | | $ | 0.59 | | $ | 0.54 |
| | | | | | |
Weighted average number of common shares and OP/DownREIT Units outstanding, basic | | | 350,112 | | | 339,543 |
Weighted average number of common shares, OP/DownREIT Units, and common stock | | | | | | |
equivalents outstanding, diluted | | | 353,653 | | | 344,132 |
| | | | | | |
Impact of adjustments to FFO: | | | | | | |
Variable upside participation on DCP, net | | $ | - | | $ | (10,622) |
Legal and other | | | (1,258) | | | 774 |
Realized (gain)/loss on real estate technology investments, net of tax | | | 595 | | | (2,238) |
Unrealized (gain)/loss on real estate technology investments, net of tax | | | (858) | | | 15,631 |
Casualty-related charges/(recoveries), net | | | 4,156 | | | (765) |
Total impact of adjustments to FFO | | $ | 2,635 | | $ | 2,780 |
| | | | | | |
FFO as Adjusted attributable to common stockholders and unitholders, diluted | | $ | 212,344 | | $ | 188,629 |
| | | | | | |
FFO as Adjusted per weighted average common share and unit, diluted | | $ | 0.60 | | $ | 0.55 |
| | | | | | |
Recurring capital expenditures | | | (12,299) | | | (11,804) |
AFFO attributable to common stockholders and unitholders, diluted | | $ | 200,045 | | $ | 176,825 |
| | | | | | |
AFFO per weighted average common share and unit, diluted | | $ | 0.57 | | $ | 0.51 |
| (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 months ended March 31, 2023 and March 31, 2022. 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
UDR, Inc.
Consolidated Balance Sheets
(Unaudited) (1)
| | March 31, | | December 31, | ||
In thousands, except share and per share amounts | | 2023 | | 2022 | ||
| | | | | | |
ASSETS | | | | | | |
| | | | | | |
Real estate owned: | | | | | | |
Real estate held for investment | | $ | 15,565,915 | | $ | 15,365,928 |
Less: accumulated depreciation | | | (5,926,651) | | | (5,762,205) |
Real estate held for investment, net | | | 9,639,264 | | | 9,603,723 |
Real estate under development | | | | | | |
(net of accumulated depreciation of $0 and $296) | | | 76,455 | | | 189,809 |
Real estate held for disposition | | | | | | |
(net of accumulated depreciation of $0 and $0) | | | - | | | 14,039 |
Total real estate owned, net of accumulated depreciation | | | 9,715,719 | | | 9,807,571 |
| | | | | | |
Cash and cash equivalents | | | 1,172 | | | 1,193 |
Restricted cash | | | 28,038 | | | 29,001 |
Notes receivable, net | | | 71,125 | | | 54,707 |
Investment in and advances to unconsolidated joint ventures, net | | | 751,387 | | | 754,446 |
Operating lease right-of-use assets | | | 193,230 | | | 194,081 |
Other assets | | | 207,029 | | | 197,471 |
Total assets | | $ | 10,967,700 | | $ | 11,038,470 |
| | | | | | |
LIABILITIES AND EQUITY | | | | | | |
| | | | | | |
Liabilities: | | | | | | |
Secured debt | | $ | 1,051,000 | | $ | 1,052,281 |
Unsecured debt | | | 4,525,963 | | | 4,435,022 |
Operating lease liabilities | | | 188,402 | | | 189,238 |
Real estate taxes payable | | | 35,052 | | | 37,681 |
Accrued interest payable | | | 26,580 | | | 46,671 |
Security deposits and prepaid rent | | | 57,738 | | | 51,999 |
Distributions payable | | | 148,409 | | | 134,213 |
Accounts payable, accrued expenses, and other liabilities | | | 111,795 | | | 153,220 |
Total liabilities | | | 6,144,939 | | | 6,100,325 |
| | | | | | |
Redeemable noncontrolling interests in the OP and DownREIT Partnership | | | 901,652 | | | 839,850 |
| | | | | | |
Equity: | | | | | | |
Preferred stock, no par value; 50,000,000 shares authorized at March 31, 2023 and December 31, 2022: | | | | | | |
2,686,308 shares of 8.00% Series E Cumulative Convertible issued | | | | | | |
and outstanding (2,686,308 shares at December 31, 2022) | | | 44,614 | | | 44,614 |
12,090,558 shares of Series F outstanding (12,100,514 shares at December 31, 2022) | | | 1 | | | 1 |
Common stock, $0.01 par value; 450,000,000 shares authorized at March 31, 2023 and December 31, 2022: | | | | | | |
329,173,125 shares issued and outstanding (328,993,088 shares at December 31, 2022) | | | 3,292 | | | 3,290 |
Additional paid-in capital | | | 7,494,042 | | | 7,493,423 |
Distributions in excess of net income | | | (3,627,873) | | | (3,451,587) |
Accumulated other comprehensive income/(loss), net | | | 6,823 | | | 8,344 |
Total stockholders' equity | | | 3,920,899 | | | 4,098,085 |
Noncontrolling interests | | | 210 | | | 210 |
Total equity | | | 3,921,109 | | | 4,098,295 |
Total liabilities and equity | | $ | 10,967,700 | | $ | 11,038,470 |
| (1) | See Attachment 14 for definitions and other terms. |
4
Attachment 4(A)
UDR, Inc.
Selected Financial Information
(Unaudited) (1)
| | | | | | | | | | March 31, | | December 31, |
Common Stock and Equivalents | | | | | | | | | | 2023 | | 2022 |
| | | | | | | | | | | | |
Common shares | | | | | | | | | | 329,173,125 | | 328,993,088 |
Restricted unit and common stock equivalents | | | | | | | | | | 184,913 | | 599,681 |
Operating and DownREIT Partnership units | | | | | | | | | | 21,399,556 | | 21,123,826 |
Series E cumulative convertible preferred shares (2) | | | | | | | | | | 2,908,323 | | 2,908,323 |
Total common shares, OP/DownREIT units, and common stock equivalents | | | | | | | | | | 353,665,917 | | 353,624,918 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Weighted Average Number of Shares Outstanding | | | | | | | | | | 1Q 2023 | | 1Q 2022 |
| | | | | | | | | | | | |
Weighted average number of common shares and OP/DownREIT units outstanding - basic | | | | | | | | | | 350,111,752 | | 339,543,188 |
Weighted average number of OP/DownREIT units outstanding | | | | | | | | | | (21,323,105) | | (21,534,287) |
Weighted average number of common shares outstanding - basic per the Consolidated Statements of Operations | | | | | | | | | | 328,788,647 | | 318,008,901 |
| | | | | | | | | | | | |
Weighted average number of common shares, OP/DownREIT units, and common stock equivalents outstanding - diluted | | | | | | | | | | 353,652,563 | | 344,131,504 |
Weighted average number of OP/DownREIT units outstanding | | | | | | | | | | (21,323,105) | | (21,534,287) |
Weighted average number of Series E cumulative convertible preferred shares outstanding | | | | | | | | | | (2,908,323) | | (2,918,127) |
Weighted average number of common shares outstanding - diluted per the Consolidated Statements of Operations | | | | | | | | | | 329,421,135 | | 319,679,090 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| (1) | See Attachment 14 for definitions and other terms. |
| (2) | At March 31, 2023 and December 31, 2022 there were 2,686,308 of Series E cumulative convertible preferred shares outstanding, which is equivalent to 2,908,323 shares of common stock if converted (after adjusting for the special dividend paid in 2008). |
5
Attachment 4(B)
UDR, Inc.
Selected Financial Information
March 31, 2023
(Unaudited) (1)
| | | | | | | | | | | | | | Weighted | | Weighted |
| | | | | | | | | | | | | | Average | | Average Years |
Debt Structure, In thousands | | | | | | | | Balance | | | % of Total | | Interest Rate | | to Maturity (2) | |
| | | | | | | | | | | | | | | | |
Secured | | | Fixed | | | | | $ | 1,005,331 | | | 18.1% | | 3.42% | | 5.2 |
| | | Floating | | | | | | 27,000 | | | 0.5% | | 3.89% | | 9.0 |
| | | Combined | | | | | | 1,032,331 | | | 18.6% | | 3.43% | | 5.3 |
| | | | | | | | | | | | | | | | |
Unsecured | | | Fixed | | | | | | 4,115,644 | (3) | | 73.9% | | 3.06% | | 7.2 |
| | | Floating | | | | | | 418,771 | | | 7.5% | | 5.16% | | 0.1 |
| | | Combined | | | | | | 4,534,415 | | | 81.4% | | 3.25% | | 6.5 |
| | | | | | | | | | | | | | | | |
Total Debt | | | Fixed | | | | | | 5,120,975 | | | 92.0% | | 3.13% | | 6.8 |
| | | Floating | | | | | | 445,771 | | | 8.0% | | 5.08% | | 0.6 |
| | | Combined | | | | | | 5,566,746 | | | 100.0% | | 3.29% | | 6.3 |
| | | Total Non-Cash Adjustments (4) | | | | | | 10,217 | | | | | | | |
| | | Total per Balance Sheet | | | | | $ | 5,576,963 | | | | | 3.25% | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Debt Maturities, In thousands | | | | | | | | | | | | | | | | |
| | | | | | | | Revolving Credit | | | | | | | Weighted | |
| | | | | Unsecured | | Facilities & Comm. | | | | | | | Average | ||
| | Secured Debt (5) | | Debt | | Paper (2) (6) (7) | | Balance | | % of Total | | Interest Rate | ||||
| | | | | | | | | | | | | | | | |
2023 | | $ | 951 | | $ | - | | $ | 405,000 | | $ | 405,951 | | 7.3% | | 5.14% |
2024 | | | 96,747 | | | 15,644 | | | 13,771 | | | 126,162 | | 2.3% | | 4.19% |
2025 | | | 174,793 | | | - | | | - | | | 174,793 | | 3.1% | | 3.69% |
2026 | | | 52,744 | | | 300,000 | | | - | | | 352,744 | | 6.3% | | 2.95% |
2027 | | | 2,860 | | | 650,000 | | | - | | | 652,860 | | 11.7% | | 3.67% |
2028 | | | 162,310 | | | 300,000 | | | - | | | 462,310 | | 8.3% | | 3.72% |
2029 | | | 191,986 | | | 300,000 | | | - | | | 491,986 | | 8.8% | | 3.94% |
2030 | | | 162,010 | | | 600,000 | | | - | | | 762,010 | | 13.7% | | 3.32% |
2031 | | | 160,930 | | | 600,000 | | | - | | | 760,930 | | 13.7% | | 2.92% |
2032 | | | 27,000 | | | 400,000 | | | - | | | 427,000 | | 7.7% | | 2.21% |
Thereafter | | | - | | | 950,000 | | | - | | | 950,000 | | 17.1% | | 2.35% |
| | | 1,032,331 | | | 4,115,644 | | | 418,771 | | | 5,566,746 | | 100.0% | | 3.29% |
Total Non-Cash Adjustments (4) | | | 18,669 | | | (8,452) | | | - | | | 10,217 | | | | |
Total per Balance Sheet | | $ | 1,051,000 | | $ | 4,107,192 | | $ | 418,771 | | $ | 5,576,963 | | | | 3.25% |
| (1) | See Attachment 14 for definitions and other terms. |
| (2) | The 2023 maturity reflects the $405.0 million of principal outstanding at an interest rate of 5.1%, the equivalent of SOFR plus a spread of 38 basis points, on the Company’s unsecured commercial paper program as of March 31, 2023. 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 6.5 years without extensions and 6.6 years with extensions. |
| (3) | Includes the following amount of floating rate debt that has been fixed using interest rate swaps: $350.0 million at a weighted average all-in rate of 3.36% until January 2024, $262.5 million at a weighted average all-in rate of 2.68% from January 2024 until July 2024, and $175.0 million of floating rate debt at a weighted average all-in rate of 1.43% from July 2024 until July 2025. |
| (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 March 31, 2023. 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 $13.8 million outstanding on our $75.0 million working capital credit facility at March 31, 2023. The facility has a maturity date of January 2024. The working capital credit facility currently carries an interest rate equal to adjusted SOFR plus 77.5 basis points. |
6
Attachment 4(C)
UDR, Inc.
Selected Financial Information
(Dollars in Thousands)
(Unaudited) (1)
| | | | | | | | | | | | Quarter Ended | |
Coverage Ratios | | | | | | | | | | | | March 31, 2023 | |
Net income/(loss) | | | | | | | | | | | | $ | 32,925 |
Adjustments: | | | | | | | | | | | | | |
Interest expense, including debt extinguishment and other associated costs | | | 43,742 | ||||||||||
Real estate depreciation and amortization | | | | | | | | | | | | | 169,300 |
Other depreciation and amortization | | | | | | | | | | | | | 3,649 |
Tax provision/(benefit), net | | | | | | | | | | | | | 234 |
Net (gain)/loss on the sale of depreciable real estate owned | | | | | | | | | | | | | (1) |
Adjustments to reflect the Company's share of EBITDAre of unconsolidated joint ventures | | | 11,516 | ||||||||||
EBITDAre | | | | | | | | | | | | $ | 261,365 |
| | | | | | | | | | | | | |
Casualty-related charges/(recoveries), net | | | | | | | | | | | | | 4,156 |
Legal and other costs | | | | | | | | | | | | | (1,258) |
Unrealized (gain)/loss on real estate technology investments | | | | | | | | | | | | | 597 |
Realized (gain)/loss on real estate technology investments | | | | | | | | | | | | | 75 |
(Income)/loss from unconsolidated entities | | | | | | | | | | | | | (9,707) |
Adjustments to reflect the Company's share of EBITDAre of unconsolidated joint ventures | | | (11,516) | ||||||||||
Management fee expense on unconsolidated joint ventures | | | | | | | | | | | | | (610) |
Consolidated EBITDAre - adjusted for non-recurring items | | | | | | | | | | | | $ | 243,102 |
| | | | | | | | | | | | | |
Annualized consolidated EBITDAre - adjusted for non-recurring items | | $ | 972,408 | ||||||||||
| | | | | | | | | | | | | |
Interest expense, including debt extinguishment and other associated costs | | | 43,742 | ||||||||||
Capitalized interest expense | | | | | | | | | | | | | 2,242 |
Total interest | | | | | | | | | | | | $ | 45,984 |
| | | | | | | | | | | | | |
Preferred dividends | | | | | | | | | | | | $ | 1,183 |
| | | | | | | | | | | | | |
Total debt | | | | | | | | | | | | $ | 5,576,963 |
Cash | | | | | | | | | | | | | (1,172) |
Net debt | | | | | | | | | | | | $ | 5,575,791 |
| | | | | | | | | | | | | |
Consolidated Interest Coverage Ratio - adjusted for non-recurring items | | | 5.3x | ||||||||||
| | | | | | | | | | | | | |
Consolidated Fixed Charge Coverage Ratio - adjusted for non-recurring items | | | 5.2x | ||||||||||
| | | | | | | | | | | | | |
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% | | | 30.4% (2) | | | Yes |
Minimum Fixed Charge Coverage Ratio | | | | | | | ≥1.5x | | | 5.3x | | | Yes |
Maximum Secured Debt Ratio | | | | | | | ≤40.0% | | | 8.9% | | | Yes |
Minimum Unencumbered Pool Leverage Ratio | | | | | | | ≥150.0% | | | 380.8% | | | Yes |
| | | | | | | | | | | | | |
Senior Unsecured Note Covenants (3) | | | | | | | Required | | | Actual | | | Compliance |
| | | | | | | | | | | | | |
Debt as a percentage of Total Assets | | | | | | | ≤65.0% | | | 33.1% (3) | | | Yes |
Consolidated Income Available for Debt Service to Annual Service Charge | | ≥1.5x | | | 5.6x | | | Yes | |||||
Secured Debt as a percentage of Total Assets | | | | | | | ≤40.0% | | | 6.2% | | | Yes |
Total Unencumbered Assets to Unsecured Debt | | | | | | | ≥150.0% | | | 317.9% | | | 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 | | 1Q 2023 NOI (1) | | | | | Carrying Value | | | Total Gross | |
Asset Summary | | Homes | | ($000s) | | % of NOI | | | ($000s) | | | Carrying Value | |
| | | | | | | | | | | | | |
Unencumbered assets | | 47,637 | | $ | 243,511 | | 88.4% | | $ | 13,888,429 | | | 88.8% |
Encumbered assets | | 7,522 | | | 31,992 | | 11.6% | | | 1,753,941 | | | 11.2% |
| | 55,159 | | $ | 275,503 | | 100.0% | | $ | 15,642,370 | | | 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
UDR, Inc.
Operating Information
(Unaudited) (1)
| | Total | | Quarter Ended | | Quarter Ended | | Quarter Ended | | Quarter Ended | | Quarter Ended | |||||
Dollars in thousands | | Homes | | March 31, 2023 | | December 31, 2022 | | September 30, 2022 | | June 30, 2022 | | March 31, 2022 | |||||
Revenues | | | | | | | | | | | | | | | | | |
Same-Store Communities | | 53,173 | | $ | 379,379 | | $ | 379,517 | | $ | 373,400 | | $ | 359,046 | | $ | 350,768 |
Stabilized, Non-Mature Communities | | 1,174 | | | 8,031 | | | 7,441 | | | 5,747 | | | 2,101 | | | 210 |
Development Communities | | 812 | | | 2,386 | | | 1,513 | | | 873 | | | 310 | | | 31 |
Non-Residential / Other (2) | | - | | | 8,511 | | | 9,611 | | | 9,317 | | | 5,576 | | | 4,506 |
Total | | 55,159 | | $ | 398,307 | | $ | 398,082 | | $ | 389,337 | | $ | 367,033 | | $ | 355,515 |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | |
Same-Store Communities | | | | $ | 113,694 | | $ | 113,222 | | $ | 117,063 | | $ | 108,629 | | $ | 108,228 |
Stabilized, Non-Mature Communities | | | | | 3,144 | | | 2,875 | | | 2,092 | | | 909 | | | 355 |
Development Communities | | | | | 2,078 | | | 1,664 | | | 1,012 | | | 655 | | | 327 |
Non-Residential / Other (2) | | | | | 3,888 | | | 3,614 | | | 4,649 | | | 2,795 | | | 3,151 |
Total (3) | | | | $ | 122,804 | | $ | 121,375 | | $ | 124,816 | | $ | 112,988 | | $ | 112,061 |
| | | | | | | | | | | | | | | | | |
Net Operating Income | | | | | | | | | | | | | | | | | |
Same-Store Communities | | | | $ | 265,685 | | $ | 266,295 | | $ | 256,337 | | $ | 250,417 | | $ | 242,540 |
Stabilized, Non-Mature Communities | | | | | 4,887 | | | 4,566 | | | 3,655 | | | 1,192 | | | (145) |
Development Communities | | | | | 308 | | | (151) | | | (139) | | | (345) | | | (296) |
Non-Residential / Other (2) | | | | | 4,623 | | | 5,997 | | | 4,668 | | | 2,781 | | | 1,355 |
Total | | | | $ | 275,503 | | $ | 276,707 | | $ | 264,521 | | $ | 254,045 | | $ | 243,454 |
| | | | | | | | | | | | | | | | | |
Operating Margin | | | | | | | | | | | | | | | | | |
Same-Store Communities | | | | | 70.0% | | | 70.2% | | | 68.6% | | | 69.7% | | | 69.1% |
| | | | | | | | | | | | | | | | | |
Weighted Average Physical Occupancy | | | | | | | | | | | | | | | | | |
Same-Store Communities | | | | | 96.6% | | | 96.7% | | | 96.6% | | | 97.0% | | | 97.1% |
Stabilized, Non-Mature Communities | | | | | 95.5% | | | 90.6% | | | 87.3% | | | 86.9% | | | 30.6% |
Development Communities | | | | | 47.9% | | | 44.3% | | | 48.6% | | | 33.2% | | | 18.1% |
Other (4) | | | | | - | | | - | | | 95.4% | | | 97.0% | | | 96.3% |
Total | | | | | 95.8% | | | 96.1% | | | 96.3% | | | 96.7% | | | 96.9% |
| | | | | | | | | | | | | | | | | |
Sold and Held for Disposition Communities | | | | | | | | | | | | | | | | | |
Revenues | | - | | $ | - | | $ | 330 | | $ | 686 | | $ | 715 | | $ | 666 |
Expenses (3) | | | | | - | | | 151 | | | 189 | | | 205 | | | 187 |
Net Operating Income/(Loss) | | | | $ | - | | $ | 179 | | $ | 497 | | $ | 510 | | $ | 479 |
| | | | | | | | | | | | | | | | | |
Total | | 55,159 | | $ | 275,503 | | $ | 276,886 | | $ | 265,018 | | $ | 254,555 | | $ | 243,933 |
| (1) | See Attachment 14 for definitions and other terms. |
| (2) | Primarily non-residential revenue and expense and straight-line adjustment for concessions. |
| (3) | 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. |
| (4) | Includes occupancy of Sold and Held for Disposition Communities. |
8
Attachment 6
UDR, Inc.
Same-Store Operating Expense Information
(Dollars in Thousands)
(Unaudited) (1)
| | % of 1Q 2023 | | | | | | | | |
| | SS Operating | | | | | | | | |
Year-Over-Year Comparison | | Expenses | | 1Q 2023 | | 1Q 2022 | | % Change | ||
| | | | | | | | | | |
Personnel (2) | | 12.1% | | $ | 13,743 | | $ | 15,556 | | -11.7% |
Utilities | | 15.3% | | | 17,362 | | | 15,033 | | 15.5% |
Repair and maintenance | | 19.1% | | | 21,699 | | | 18,872 | | 15.0% |
Administrative and marketing | | 6.5% | | | 7,369 | | | 6,911 | | 6.6% |
Controllable expenses | | 53.0% | | | 60,173 | | | 56,372 | | 6.7% |
| | | | | | | | | | |
Real estate taxes | | 41.4% | | $ | 47,192 | | $ | 45,076 | | 4.7% |
Insurance | | 5.6% | | | 6,329 | | | 6,780 | | -6.6% |
Same-Store operating expenses | | 100.0% | | $ | 113,694 | | $ | 108,228 | | 5.1% |
| | | | | | | | | | |
Same-Store Homes | | 53,173 | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | % of 1Q 2023 | | | | | | | | |
| | SS Operating | | | | | | | | |
Sequential Comparison | | Expenses | | 1Q 2023 | | 4Q 2022 | | % Change | ||
| | | | | | | | | | |
Personnel (2) | | 12.1% | | $ | 13,743 | | $ | 16,031 | | -14.3% |
Utilities | | 15.3% | | | 17,362 | | | 15,676 | | 10.7% |
Repair and maintenance | | 19.1% | | | 21,699 | | | 20,582 | | 5.4% |
Administrative and marketing | | 6.5% | | | 7,369 | | | 7,648 | | -3.6% |
Controllable expenses | | 53.0% | | | 60,173 | | | 59,937 | | 0.4% |
| | | | | | | | | | |
Real estate taxes | | 41.4% | | $ | 47,192 | | $ | 46,141 | | 2.3% |
Insurance | | 5.6% | | | 6,329 | | | 7,144 | | -11.4% |
Same-Store operating expenses | | 100.0% | | $ | 113,694 | | $ | 113,222 | | 0.4% |
| | | | | | | | | | |
Same-Store Homes | | 53,173 | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| (1) | See Attachment 14 for definitions and other terms. |
| (2) | Personnel for 1Q 2023 includes a refundable payroll tax credit of $3.7 million related to the Employee Retention Credit program. |
9
Attachment 7(A)
UDR, Inc.
Apartment Home Breakout
Portfolio Overview as of Quarter Ended
March 31, 2023
(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 | | 4,615 | | - | | 4,615 | 381 | 4,996 | | $ | 2,946 |
San Francisco, CA | | 2,779 | | 356 | | 3,135 | 602 | 3,737 | | | 3,520 |
Seattle, WA | | 2,985 | | - | | 2,985 | - | 2,985 | | | 2,786 |
Los Angeles, CA | | 1,225 | | - | | 1,225 | 340 | 1,565 | | | 3,412 |
Monterey Peninsula, CA | | 1,567 | | - | | 1,567 | - | 1,567 | | | 2,237 |
| | 13,171 | | 356 | | 13,527 | 1,323 | 14,850 | | | |
| | | | | | | | | | | |
Mid-Atlantic Region | | | | | | | | | | | |
Metropolitan DC | | 9,393 | | 300 | | 9,693 | - | 9,693 | | | 2,255 |
Baltimore, MD | | 2,220 | | - | | 2,220 | - | 2,220 | | | 1,882 |
Richmond, VA | | 1,359 | | - | | 1,359 | - | 1,359 | | | 1,765 |
| | 12,972 | | 300 | | 13,272 | - | 13,272 | | | |
| | | | | | | | | | | |
Northeast Region | | | | | | | | | | | |
Boston, MA | | 4,598 | | 433 | | 5,031 | 250 | 5,281 | | | 2,986 |
New York, NY | | 2,318 | | - | | 2,318 | 710 | 3,028 | | | 4,584 |
| | 6,916 | | 433 | | 7,349 | 960 | 8,309 | | | |
| | | | | | | | | | | |
Southeast Region | | | | | | | | | | | |
Tampa, FL | | 3,877 | | - | | 3,877 | - | 3,877 | | | 2,093 |
Orlando, FL | | 3,493 | | - | | 3,493 | - | 3,493 | | | 1,886 |
Nashville, TN | | 2,260 | | - | | 2,260 | - | 2,260 | | | 1,738 |
| | 9,630 | | - | | 9,630 | - | 9,630 | | | |
| | | | | | | | | | | |
Southwest Region | | | | | | | | | | | |
Dallas, TX | | 5,813 | | 405 | | 6,218 | - | 6,218 | | | 1,767 |
Austin, TX | | 1,272 | | - | | 1,272 | - | 1,272 | | | 1,916 |
| | 7,085 | | 405 | | 7,490 | - | 7,490 | | | |
| | | | | | | | | | | |
Other Markets (5) | | 3,399 | | 492 | | 3,891 | 554 | 4,445 | | | 2,527 |
| | | | | | | | | | | |
Totals | | 53,173 | | 1,986 | | 55,159 | 2,837 | 57,996 | | $ | 2,502 |
| | | | | | | | | | | |
Communities (6) | | 159 | | 7 | | 166 | 13 | 179 | | | |
| | | | | | | | | | | |
| | | | Homes | | Communities | | | | | |
Total completed homes | | | | 57,996 | | 179 | | | | | |
Under Development (7) | | | | 415 | | 2 | | | | | |
| | | | | | | | | | | |
Total Quarter-end homes and communities | | | | 58,411 | | 181 | | | | | |
| (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 11(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 11(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 (752 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)
UDR, Inc.
Non-Mature Home Summary and Net Operating Income by Market
March 31, 2023
(Unaudited) (1)
Non-Mature Home Breakout - By Date | ||||||||||
| | | | | | | | | | |
| | | | | | | | | | |
Community |
| Category |
| # of Homes |
| Market |
| Same-Store Quarter (2) |
| |
| | | | | | | | | | |
| | | | | | | | | | |
Bradlee Danvers | | Stabilized, Non-Mature | | 433 | | Boston, MA | | 3Q23 | | |
| | | | | | | | | | |
HQ (3) | | Stabilized, Non-Mature | | 136 | | San Francisco, CA | | 2Q24 | | |
| | | | | | | | | | |
The George Apartments | | Stabilized, Non-Mature | | 200 | | Philadelphia, PA | | 2Q24 | | |
| | | | | | | | | | |
Vitruvian West Phase 3 | | Stabilized, Non-Mature | | 405 | | Dallas, TX | | 2Q24 | | |
| | | | | | | | | | |
Cirrus | | Development | | 292 | | Denver, CO | | 3Q24 | | |
| | | | | | | | | | |
5421 at Dublin Station | | Development | | 220 | | San Francisco, CA | | 1Q25 | | |
| | | | | | | | | | |
The MO | | Development | | 300 | | Washington, DC | | 2Q25 | | |
| | | | | | | | | | |
Total | | | | 1,986 | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
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 | | 11.5% | | 11.2% | | Tampa, FL | | 5.8% | | 5.4% |
San Francisco, CA | | 7.6% | | 8.0% | | Orlando, FL | | 4.9% | | 4.6% |
Seattle, WA | | 6.9% | | 6.8% | | Nashville, TN | | 3.1% | | 2.9% |
Los Angeles, CA | | 3.2% | | 3.4% | | | | 13.8% | | 12.9% |
Monterey Peninsula, CA | | 2.9% | | 2.7% | | Southwest Region | | | | |
| | 32.1% | | 32.1% | | Dallas, TX | | 6.9% | | 6.9% |
Mid-Atlantic Region | | | | | | Austin, TX | | 1.7% | | 1.5% |
Metropolitan DC | | 16.2% | | 15.2% | | | | 8.6% | | 8.4% |
Baltimore, MD | | 3.1% | | 2.9% | | | | | | |
Richmond, VA | | 1.9% | | 1.8% | | Other Markets (4) | | 6.8% | | 7.9% |
| | 21.2% | | 19.9% | | | | | | |
Northeast Region | | | | | | | | | | |
Boston, MA | | 10.8% | | 11.3% | | | | | | |
New York, NY | | 6.7% | | 7.5% | | | | | | |
| | 17.5% | | 18.8% | | 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) | Formerly known as 1532 Harrison. |
| (4) | See Attachment 7(A), footnote 5 for details regarding location of the Other Markets. |
11
Attachment 8(A)
UDR, Inc.
Same-Store Operating Information By Major Market
Current Quarter vs. Prior Year Quarter
March 31, 2023
(Unaudited) (1)
| | | | | | | | | | | | | |
| | | % of Same- | | Same-Store | ||||||||
| | Total | Store Portfolio | | | | | | | | | | |
| | Same-Store | Based on | | Physical Occupancy | | Total Revenue per Occupied Home | ||||||
| | Homes | 1Q 2023 NOI | | 1Q 23 | 1Q 22 | Change | | 1Q 23 | 1Q 22 | Change | ||
| | | | | | | | | | | | | |
West Region | | | | | | | | | | | | | |
Orange County, CA | | 4,615 | 11.5% | | 96.2% | 96.8% | -0.6% | | $ | 2,941 | $ | 2,737 | 7.5% |
San Francisco, CA | | 2,779 | 7.6% | | 96.9% | 97.4% | -0.5% | | | 3,451 | | 3,199 | 7.9% |
Seattle, WA | | 2,985 | 6.9% | | 97.0% | 97.6% | -0.6% | | | 2,786 | | 2,609 | 6.8% |
Los Angeles, CA | | 1,225 | 3.2% | | 96.6% | 96.6% | 0.0% | | | 3,208 | | 2,973 | 7.9% |
Monterey Peninsula, CA | | 1,567 | 2.9% | | 95.3% | 96.7% | -1.4% | | | 2,237 | | 2,201 | 1.6% |
| | 13,171 | 32.1% | | 96.4% | 97.0% | -0.6% | | | 2,959 | | 2,767 | 6.9% |
| | | | | | | | | | | | | |
Mid-Atlantic Region | | | | | | | | | | | | | |
Metropolitan DC | | 9,393 | 16.2% | | 96.9% | 97.2% | -0.3% | | | 2,261 | | 2,121 | 6.6% |
Baltimore, MD | | 2,220 | 3.1% | | 95.3% | 96.5% | -1.2% | | | 1,882 | | 1,772 | 6.2% |
Richmond, VA | | 1,359 | 1.9% | | 96.6% | 97.7% | -1.1% | | | 1,765 | | 1,597 | 10.5% |
| | 12,972 | 21.2% | | 96.6% | 97.1% | -0.5% | | | 2,145 | | 2,006 | 6.9% |
| | | | | | | | | | | | | |
Northeast Region | | | | | | | | | | | | | |
Boston, MA | | 4,598 | 10.8% | | 96.7% | 97.0% | -0.3% | | | 3,018 | | 2,814 | 7.2% |
New York, NY | | 2,318 | 6.7% | | 97.9% | 98.3% | -0.4% | | | 4,515 | | 4,037 | 11.8% |
| | 6,916 | 17.5% | | 97.1% | 97.4% | -0.3% | | | 3,524 | | 3,228 | 9.2% |
| | | | | | | | | | | | | |
Southeast Region | | | | | | | | | | | | | |
Tampa, FL | | 3,877 | 5.8% | | 96.4% | 97.0% | -0.6% | | | 2,093 | | 1,842 | 13.6% |
Orlando, FL | | 3,493 | 4.9% | | 95.8% | 96.9% | -1.1% | | | 1,886 | | 1,646 | 14.6% |
Nashville, TN | | 2,260 | 3.1% | | 95.9% | 98.2% | -2.3% | | | 1,738 | | 1,517 | 14.6% |
| | 9,630 | 13.8% | | 96.1% | 97.2% | -1.1% | | | 1,935 | | 1,694 | 14.2% |
| | | | | | | | | | | | | |
Southwest Region | | | | | | | | | | | | | |
Dallas, TX | | 5,813 | 6.9% | | 96.5% | 96.9% | -0.4% | | | 1,765 | | 1,589 | 11.1% |
Austin, TX | | 1,272 | 1.7% | | 96.9% | 97.8% | -0.9% | | | 1,916 | | 1,718 | 11.5% |
| | 7,085 | 8.6% | | 96.6% | 97.1% | -0.5% | | | 1,792 | | 1,612 | 11.2% |
| | | | | | | | | | | | | |
Other Markets | | 3,399 | 6.8% | | 97.0% | 97.0% | 0.0% | | | 2,488 | | 2,330 | 6.8% |
| | | | | | | | | | | | | |
Total/Weighted Avg. | | 53,173 | 100.0% | | 96.6% | 97.1% | -0.5% | | $ | 2,464 | $ | 2,264 | 8.9% |
| (1) | See Attachment 14 for definitions and other terms. |
12
Attachment 8(B)
UDR, Inc.
Same-Store Operating Information By Major Market
Current Quarter vs. Prior Year Quarter
March 31, 2023
(Unaudited) (1)
| | | | Same-Store ($000s) | |||||||||||||||
| | | | | | | | | | | | | | | | | | | |
| Total | | | | | | | | | | | | | | | | | | |
| Same-Store | | Revenues | | Expenses | | Net Operating Income | ||||||||||||
| Homes | | 1Q 23 | 1Q 22 | Change | | 1Q 23 | 1Q 22 | Change | | 1Q 23 | 1Q 22 | Change | ||||||
| | | | | | | | | | | | | | | | | | | |
West Region | | | | | | | | | | | | | | | | | | | |
Orange County, CA | 4,615 | | $ | 39,165 | $ | 36,686 | 6.8% | | $ | 8,532 | $ | 7,936 | 7.5% | | $ | 30,633 | $ | 28,750 | 6.6% |
San Francisco, CA | 2,779 | | | 27,882 | | 25,716 | 8.4% | | | 7,809 | | 7,683 | 1.6% | | | 20,073 | | 18,033 | 11.3% |
Seattle, WA | 2,985 | | | 24,201 | | 22,799 | 6.1% | | | 5,922 | | 6,310 | -6.1% | | | 18,279 | | 16,489 | 10.9% |
Los Angeles, CA | 1,225 | | | 11,388 | | 10,553 | 7.9% | | | 2,944 | | 2,838 | 3.7% | | | 8,444 | | 7,715 | 9.5% |
Monterey Peninsula, CA | 1,567 | | | 10,022 | | 9,993 | 0.3% | | | 2,254 | | 2,117 | 6.4% | | | 7,768 | | 7,876 | -1.4% |
| 13,171 | | | 112,658 | | 105,747 | 6.5% | | | 27,461 | | 26,884 | 2.1% | | | 85,197 | | 78,863 | 8.0% |
| | | | | | | | | | | | | | | | | | | |
Mid-Atlantic Region | | | | | | | | | | | | | | | | | | | |
Metropolitan DC | 9,393 | | | 61,729 | | 58,100 | 6.2% | | | 18,786 | | 18,416 | 2.0% | | | 42,943 | | 39,684 | 8.2% |
Baltimore, MD | 2,220 | | | 11,946 | | 11,388 | 4.9% | | | 3,737 | | 3,619 | 3.3% | | | 8,209 | | 7,769 | 5.7% |
Richmond, VA | 1,359 | | | 6,950 | | 6,360 | 9.3% | | | 1,827 | | 1,642 | 11.3% | | | 5,123 | | 4,718 | 8.6% |
| 12,972 | | | 80,625 | | 75,848 | 6.3% | | | 24,350 | | 23,677 | 2.8% | | | 56,275 | | 52,171 | 7.9% |
| | | | | | | | | | | | | | | | | | | |
Northeast Region | | | | | | | | | | | | | | | | | | | |
Boston, MA | 4,598 | | | 40,262 | | 37,656 | 6.9% | | | 11,534 | | 11,402 | 1.2% | | | 28,728 | | 26,254 | 9.4% |
New York, NY | 2,318 | | | 30,737 | | 27,599 | 11.4% | | | 12,951 | | 12,080 | 7.2% | | | 17,786 | | 15,519 | 14.6% |
| 6,916 | | | 70,999 | | 65,255 | 8.8% | | | 24,485 | | 23,482 | 4.3% | | | 46,514 | | 41,773 | 11.3% |
| | | | | | | | | | | | | | | | | | | |
Southeast Region | | | | | | | | | | | | | | | | | | | |
Tampa, FL | 3,877 | | | 23,470 | | 20,784 | 12.9% | | | 8,161 | | 7,163 | 13.9% | | | 15,309 | | 13,621 | 12.4% |
Orlando, FL | 3,493 | | | 18,938 | | 16,718 | 13.3% | | | 5,756 | | 5,213 | 10.4% | | | 13,182 | | 11,505 | 14.6% |
Nashville, TN | 2,260 | | | 11,301 | | 10,098 | 11.9% | | | 3,042 | | 3,074 | -1.0% | | | 8,259 | | 7,024 | 17.6% |
| 9,630 | | | 53,709 | | 47,600 | 12.8% | | | 16,959 | | 15,450 | 9.8% | | | 36,750 | | 32,150 | 14.3% |
| | | | | | | | | | | | | | | | | | | |
Southwest Region | | | | | | | | | | | | | | | | | | | |
Dallas, TX | 5,813 | | | 29,697 | | 26,852 | 10.6% | | | 11,200 | | 9,974 | 12.3% | | | 18,497 | | 16,878 | 9.6% |
Austin, TX | 1,272 | | | 7,086 | | 6,412 | 10.5% | | | 2,664 | | 2,375 | 12.1% | | | 4,422 | | 4,037 | 9.5% |
| 7,085 | | | 36,783 | | 33,264 | 10.6% | | | 13,864 | | 12,349 | 12.3% | | | 22,919 | | 20,915 | 9.6% |
| | | | | | | | | | | | | | | | | | | |
Other Markets | 3,399 | | | 24,605 | | 23,054 | 6.7% | | | 6,575 | | 6,386 | 3.0% | | | 18,030 | | 16,668 | 8.2% |
| | | | | | | | | | | | | | | | | | | |
Total (2) | 53,173 | | $ | 379,379 | $ | 350,768 | 8.2% | | $ | 113,694 | $ | 108,228 | 5.1% | | $ | 265,685 | $ | 242,540 | 9.5% |
| (1) | See Attachment 14 for definitions and other terms. |
| (2) | With concessions reflected on a straight-line basis, Same-Store Revenue and Same-Store NOI increased year-over-year by 9.6% and 11.7%, respectively. See Attachment 14(C) for definitions and reconciliations. |
13
Attachment 8(C)
UDR, Inc.
Same-Store Operating Information By Major Market
Current Quarter vs. Last Quarter
March 31, 2023
(Unaudited) (1)
| | | | Same-Store | ||||||||
| | Total | | | | | | | | | | |
| | Same-Store | | Physical Occupancy | | Total Revenue per Occupied Home | ||||||
| | Homes | | 1Q 23 | 4Q 22 | Change | | 1Q 23 | 4Q 22 | Change | ||
| | | | | | | | | | | | |
West Region | | | | | | | | | | | | |
Orange County, CA | | 4,615 | | 96.2% | 96.9% | -0.7% | | $ | 2,941 | $ | 2,931 | 0.3% |
San Francisco, CA | | 2,779 | | 96.9% | 95.9% | 1.0% | | | 3,451 | | 3,445 | 0.2% |
Seattle, WA | | 2,985 | | 97.0% | 97.1% | -0.1% | | | 2,786 | | 2,825 | -1.4% |
Los Angeles, CA | | 1,225 | | 96.6% | 96.7% | -0.1% | | | 3,208 | | 3,055 | 5.0% |
Monterey Peninsula, CA | | 1,567 | | 95.3% | 95.3% | 0.0% | | | 2,237 | | 2,307 | -3.0% |
| | 13,171 | | 96.4% | 96.5% | -0.1% | | | 2,959 | | 2,953 | 0.2% |
| | | | | | | | | | | | |
Mid-Atlantic Region | | | | | | | | | | | | |
Metropolitan DC | | 9,393 | | 96.9% | 97.0% | -0.1% | | | 2,261 | | 2,238 | 1.0% |
Baltimore, MD | | 2,220 | | 95.3% | 96.0% | -0.7% | | | 1,882 | | 1,890 | -0.4% |
Richmond, VA | | 1,359 | | 96.6% | 97.5% | -0.9% | | | 1,765 | | 1,775 | -0.6% |
| | 12,972 | | 96.6% | 96.9% | -0.3% | | | 2,145 | | 2,130 | 0.7% |
| | | | | | | | | | | | |
Northeast Region | | | | | | | | | | | | |
Boston, MA | | 4,598 | | 96.7% | 96.7% | 0.0% | | | 3,018 | | 3,052 | -1.1% |
New York, NY | | 2,318 | | 97.9% | 97.8% | 0.1% | | | 4,515 | | 4,446 | 1.6% |
| | 6,916 | | 97.1% | 97.1% | 0.0% | | | 3,524 | | 3,523 | 0.0% |
| | | | | | | | | | | | |
Southeast Region | | | | | | | | | | | | |
Tampa, FL | | 3,877 | | 96.4% | 96.7% | -0.3% | | | 2,093 | | 2,090 | 0.1% |
Orlando, FL | | 3,493 | | 95.8% | 96.0% | -0.2% | | | 1,886 | | 1,874 | 0.6% |
Nashville, TN | | 2,260 | | 95.9% | 97.1% | -1.2% | | | 1,738 | | 1,746 | -0.5% |
| | 9,630 | | 96.1% | 96.6% | -0.5% | | | 1,935 | | 1,929 | 0.3% |
| | | | | | | | | | | | |
Southwest Region | | | | | | | | | | | | |
Dallas, TX | | 5,813 | | 96.5% | 96.6% | -0.1% | | | 1,765 | | 1,775 | -0.6% |
Austin, TX | | 1,272 | | 96.9% | 97.5% | -0.6% | | | 1,916 | | 1,916 | 0.0% |
| | 7,085 | | 96.6% | 96.8% | -0.2% | | | 1,792 | | 1,801 | -0.5% |
| | | | | | | | | | | | |
Other Markets | | 3,399 | | 97.0% | 96.6% | 0.4% | | | 2,488 | | 2,530 | -1.7% |
| | | | | | | | | | | | |
Total/Weighted Avg. | | 53,173 | | 96.6% | 96.7% | -0.1% | | $ | 2,464 | $ | 2,459 | 0.2% |
| (1) | See Attachment 14 for definitions and other terms. |
14
Attachment 8(D)
UDR, Inc.
Same-Store Operating Information By Major Market
Current Quarter vs. Last Quarter
March 31, 2023
(Unaudited) (1)
| | | | Same-Store ($000s) | |||||||||||||||
| Total | | | | | | | | | | | | | | | | | | |
| Same-Store | | Revenues | | Expenses | | Net Operating Income | ||||||||||||
| Homes | | 1Q 23 | 4Q 22 | Change | | 1Q 23 | 4Q 22 | Change | | 1Q 23 | 4Q 22 | Change | ||||||
| | | | | | | | | | | | | | | | | | | |
West Region | | | | | | | | | | | | | | | | | | | |
Orange County, CA | 4,615 | | $ | 39,165 | $ | 39,149 | 0.0% | | $ | 8,532 | $ | 8,828 | -3.4% | | $ | 30,633 | $ | 30,321 | 1.0% |
San Francisco, CA | 2,779 | | | 27,882 | | 27,543 | 1.2% | | | 7,809 | | 7,959 | -1.9% | | | 20,073 | | 19,584 | 2.5% |
Seattle, WA | 2,985 | | | 24,201 | | 24,567 | -1.5% | | | 5,922 | | 6,523 | -9.2% | | | 18,279 | | 18,044 | 1.3% |
Los Angeles, CA | 1,225 | | | 11,388 | | 10,857 | 4.9% | | | 2,944 | | 3,065 | -3.9% | | | 8,444 | | 7,792 | 8.4% |
Monterey Peninsula, CA | 1,567 | | | 10,022 | | 10,336 | -3.0% | | | 2,254 | | 2,425 | -7.0% | | | 7,768 | | 7,911 | -1.8% |
| 13,171 | | | 112,658 | | 112,452 | 0.2% | | | 27,461 | | 28,800 | -4.6% | | | 85,197 | | 83,652 | 1.8% |
| | | | | | | | | | | | | | | | | | | |
Mid-Atlantic Region | | | | | | | | | | | | | | | | | | | |
Metropolitan DC | 9,393 | | | 61,729 | | 61,171 | 0.9% | | | 18,786 | | 18,833 | -0.3% | | | 42,943 | | 42,338 | 1.4% |
Baltimore, MD | 2,220 | | | 11,946 | | 12,084 | -1.1% | | | 3,737 | | 3,883 | -3.8% | | | 8,209 | | 8,201 | 0.1% |
Richmond, VA | 1,359 | | | 6,950 | | 7,057 | -1.5% | | | 1,827 | | 1,771 | 3.2% | | | 5,123 | | 5,286 | -3.1% |
| 12,972 | | | 80,625 | | 80,312 | 0.4% | | | 24,350 | | 24,487 | -0.6% | | | 56,275 | | 55,825 | 0.8% |
| | | | | | | | | | | | | | | | | | | |
Northeast Region | | | | | | | | | | | | | | | | | | | |
Boston, MA | 4,598 | | | 40,262 | | 40,704 | -1.1% | | | 11,534 | | 10,815 | 6.7% | | | 28,728 | | 29,889 | -3.9% |
New York, NY | 2,318 | | | 30,737 | | 30,239 | 1.6% | | | 12,951 | | 12,511 | 3.5% | | | 17,786 | | 17,728 | 0.3% |
| 6,916 | | | 70,999 | | 70,943 | 0.1% | | | 24,485 | | 23,326 | 5.0% | | | 46,514 | | 47,617 | -2.3% |
| | | | | | | | | | | | | | | | | | | |
Southeast Region | | | | | | | | | | | | | | | | | | | |
Tampa, FL | 3,877 | | | 23,470 | | 23,505 | -0.1% | | | 8,161 | | 8,015 | 1.8% | | | 15,309 | | 15,490 | -1.2% |
Orlando, FL | 3,493 | | | 18,938 | | 18,852 | 0.5% | | | 5,756 | | 5,614 | 2.5% | | | 13,182 | | 13,238 | -0.4% |
Nashville, TN | 2,260 | | | 11,301 | | 11,495 | -1.7% | | | 3,042 | | 2,824 | 7.7% | | | 8,259 | | 8,671 | -4.8% |
| 9,630 | | | 53,709 | | 53,852 | -0.3% | | | 16,959 | | 16,453 | 3.1% | | | 36,750 | | 37,399 | -1.7% |
| | | | | | | | | | | | | | | | | | | |
Southwest Region | | | | | | | | | | | | | | | | | | | |
Dallas, TX | 5,813 | | | 29,697 | | 29,905 | -0.7% | | | 11,200 | | 10,502 | 6.6% | | | 18,497 | | 19,403 | -4.7% |
Austin, TX | 1,272 | | | 7,086 | | 7,129 | -0.6% | | | 2,664 | | 2,616 | 1.9% | | | 4,422 | | 4,513 | -2.0% |
| 7,085 | | | 36,783 | | 37,034 | -0.7% | | | 13,864 | | 13,118 | 5.7% | | | 22,919 | | 23,916 | -4.2% |
| | | | | | | | | | | | | | | | | | | |
Other Markets | 3,399 | | | 24,605 | | 24,924 | -1.3% | | | 6,575 | | 7,038 | -6.6% | | | 18,030 | | 17,886 | 0.8% |
| | | | | | | | | | | | | | | | | | | |
Total (2) | 53,173 | | $ | 379,379 | $ | 379,517 | 0.0% | | $ | 113,694 | $ | 113,222 | 0.4% | | $ | 265,685 | $ | 266,295 | -0.2% |
| (1) | See Attachment 14 for definitions and other terms. |
| (2) | With concessions reflected on a straight-line basis, Same-Store Revenue and Same-Store NOI decreased quarter-over-quarter by 0.3% and 0.6%, respectively. See Attachment 14(C) for definitions and reconciliations. |
15
Attachment 8(E)
UDR, Inc.
Same-Store Operating Information By Major Market
March 31, 2023
(Unaudited) (1)
| | Effective Blended Lease Rate Growth | | Effective New Lease Rate Growth | | Effective Renewal Lease Rate Growth | | Annualized Turnover | |
| | 1Q 2023 | | 1Q 2023 | | 1Q 2023 | | 1Q 2023 | 1Q 2022 |
| | | | | | | | | |
West Region | | | | | | | | | |
Orange County, CA | | 3.3% | | 0.9% | | 6.8% | | 42.5% | 31.5% |
San Francisco, CA | | 4.0% | | 1.1% | | 6.5% | | 36.5% | 28.2% |
Seattle, WA | | 0.8% | | -4.3% | | 5.1% | | 45.5% | 41.8% |
Los Angeles, CA | | 7.4% | | 7.7% | | 7.2% | | 28.1% | 26.5% |
Monterey Peninsula, CA | | 3.4% | | 2.2% | | 4.9% | | 38.6% | 26.4% |
| | 3.1% | | 0.3% | | 6.2% | | 40.7% | 33.1% |
| | | | | | | | | |
Mid-Atlantic Region | | | | | | | | | |
Metropolitan DC | | 3.2% | | -1.3% | | 8.0% | | 31.7% | 28.5% |
Baltimore, MD | | 0.5% | | -3.8% | | 7.2% | | 47.7% | 39.6% |
Richmond, VA | | 2.0% | | -4.4% | | 9.3% | | 45.1% | 32.8% |
| | 2.6% | | -2.2% | | 8.0% | | 37.1% | 31.4% |
| | | | | | | | | |
Northeast Region | | | | | | | | | |
Boston, MA | | 4.6% | | 0.2% | | 9.0% | | 30.9% | 29.3% |
New York, NY | | 8.7% | | 9.5% | | 8.2% | | 24.7% | 20.6% |
| | 6.2% | | 3.4% | | 8.7% | | 29.1% | 27.0% |
| | | | | | | | | |
Southeast Region | | | | | | | | | |
Tampa, FL | | 2.3% | | -2.1% | | 7.8% | | 48.2% | 51.0% |
Orlando, FL | | 5.0% | | 2.1% | | 8.6% | | 47.8% | 41.0% |
Nashville, TN | | 4.0% | | 0.1% | | 8.4% | | 42.4% | 35.4% |
| | 3.6% | | -0.2% | | 8.2% | | 46.8% | 44.6% |
| | | | | | | | | |
Southwest Region | | | | | | | | | |
Dallas, TX | | 2.5% | | -0.7% | | 7.0% | | 45.9% | 43.4% |
Austin, TX | | 3.3% | | -0.9% | | 7.2% | | 39.2% | 45.6% |
| | 2.6% | | -0.7% | | 7.0% | | 44.9% | 43.8% |
| | | | | | | | | |
Other Markets | | 3.1% | | -0.1% | | 6.2% | | 32.7% | 36.6% |
| | | | | | | | | |
Total/Weighted Avg. | | 3.5% | | 0.0% | | 7.4% | | 38.9% | 35.0% |
| | | | | | | | | |
| | | | | | | | | |
Allocation of Total Homes Repriced during the Quarter | | | | 51.8% | | 48.2% | | | |
| (1) | See Attachment 14 for definitions and other terms. |
16
Attachment 9
UDR, Inc.
Development and Land Summary
March 31, 2023
(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 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Villas at Fiori | Addison, TX | | 85 | - | $ | 24,571 | $ | 53,500 | $ | 629 | | 1Q22 | 1Q24 | 2Q24 | | - | | - |
Meridian | Tampa, FL | | 330 | - | | 51,884 | | 134,000 | | 406 | | 1Q22 | 2Q24 | 2Q24 | | - | | - |
| | | | | | | | | | | | | | | | | | |
Total Under Construction | | | 415 | - | $ | 76,455 | $ | 187,500 | $ | 452 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Completed Projects, Non-Stabilized | | | | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | | | | | |
Cirrus | Denver, CO | | 292 | 292 | $ | 101,904 | $ | 101,904 | $ | 349 | | 3Q19 | 1Q22 | 2Q22 | | 91.4% | | 90.0% |
5421 at Dublin Station | Dublin, CA | | 220 | 220 | | 126,365 | | 126,900 | | 577 | | 4Q19 | 3Q22 | 4Q22 | | 52.3% | | 45.0% |
The MO | Washington, DC | | 300 | 300 | | 138,458 | | 145,000 | | 483 | | 3Q20 | 4Q22 | 1Q23 | | 37.7% | | 32.3% |
| | | | | | | | | | | | | | | | | | |
Total Completed, Non-Stabilized | | | 812 | 812 | $ | 366,727 | $ | 373,804 | $ | 460 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total - Wholly Owned | | | 1,227 | 812 | $ | 443,182 | $ | 561,304 | $ | 457 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |||
NOI From Wholly-Owned Projects | | 1Q 23 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Projects Under Construction | | $ | - | | | | | | | | | | | | | | | |
Completed, Non-Stabilized | | | 308 | | | | | | | | | | | | | | | |
Total | | $ | 308 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Land Summary | | | | | | | | | | | | | | | ||||
Parcel | Location | UDR Ownership Interest | Real Estate Cost Basis | | | | | | | | ||||||||
| | | | | | | | | | | | | | |||||
Vitruvian Park® | Addison, TX | 100% | $ | 35,256 | | | | | | | | | ||||||
Alameda Point Block 11 | Alameda, CA | 100% | | 30,967 | | | | | | | | | | | ||||
Newport Village II | Alexandria, VA | 100% | | 16,641 | | | | | | | | | | | ||||
2727 Turtle Creek (includes 3 phases) | Dallas, TX | 100% | | 94,817 | | | | | | | | | | | ||||
488 Riverwalk | Fort Lauderdale, FL | 100% | | 19,147 | | | | | | | | | | | ||||
3001 Iowa Avenue | Riverside, CA | 100% | | 16,706 | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||
Total | | | | | $ | 213,534 | | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | | |
| (1) | See Attachment 14 for definitions and other terms. |
17
Attachment 10
UDR, Inc.
Redevelopment Summary
March 31, 2023
(Dollars in Thousands)
(Unaudited) (1)
| | | | Sched. | | | | | | | | | Schedule |
| Percentage | ||
| | | # of | Redev. | Compl. | Cost to | Budgeted | Est. Cost | | | |
| | ||||
Community | Location | Homes | Homes | Homes | Date | Cost (2) | per Home | | Start | Compl. |
| Leased | Occupied | ||||
| | | | | | | | | | | | | | | | | |
Projects in Redevelopment with Stabilized Operations | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | |
Eight80 Newport Beach (3) | Newport Beach, CA | 1,447 | 30 | 20 | $ | 16,818 | $ | 18,000 | $ | 600 | | 1Q21 | 2Q23 | | 94.7% | 93.7% | |
Lakeline Villas (4) | Cedar Park, TX | 309 | 288 | 49 | | 4,127 | | 10,500 | | 36 | | 3Q22 | 2Q24 | | 96.8% | 96.1% | |
Red Stone Ranch (4) | Cedar Park, TX | 324 | 324 | 62 | | 3,723 | | 12,000 | | 37 | | 3Q22 | 2Q24 | | 96.3% | 94.8% | |
Towson Promenade (4) | Towson, MD | 379 | 379 | 14 | | 1,058 | | 17,000 | | 45 | | 3Q22 | 2Q24 | | 96.0% | 95.8% | |
20 Lambourne (4) | Towson, MD | 264 | 264 | 41 | | 1,933 | | 9,000 | | 34 | | 3Q22 | 2Q24 | | 97.7% | 95.8% | |
Lenox Farms (4) | Braintree, MA | 338 | 338 | 17 | | 2,853 | | 15,500 | | 46 | | 3Q22 | 3Q24 | | 97.9% | 97.3% | |
Jefferson at Marina del Rey (5) | Marina del Rey, CA | 298 | - | - | | 799 | | 6,600 | | - | | 1Q23 | 3Q23 | | 98.7% | 98.0% | |
Total | | 3,359 | 1,623 | 203 | $ | 31,311 | $ | 88,600 | $ | 51 | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| (1) | See Attachment 14 for definitions and other terms. |
| (2) | Represents UDR's incremental capital invested in the Projects. |
| (3) | Project consists of unit additions and renovation of related common area amenities. Existing homes for this Project remain in Same-Store. |
| (4) | Projects consist of unit renovations and renovation of related common area amenities. These communities remain in Same-Store. |
| (5) | Project consists of renovation of common area amenities. This community remains in Same-Store. |
18
Attachment 11(A)
UDR, Inc.
Unconsolidated Summary
March 31, 2023
(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 | | 1Q 23 |
| 1Q 23 | 1Q 23 | 1Q 23 (2) | | |||||
| | | | | | | | | | | | | | | | |
UDR / MetLife | 50% | | 13 | | 2,837 | | 96.8% | | $ | 4,135 | $ | 10,924 | $ | 21,727 | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | ||||
| 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 | $ | 1,718,225 | $ | 857,191 | $ | 249,234 | | 3.74% | | 2024-2031 | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | ||||
| Joint Venture | | | | | | | | | | | | | | | |
| Same-Store | 1Q 23 vs. 1Q 22 Growth | | 1Q 23 vs. 4Q 22 Growth | | |||||||||||
Joint Venture Same-Store Growth | Communities (4) | Revenue | Expense | | NOI | | Revenue | Expense | | NOI | | |||||
| | | | | | | | | | | | | | | | |
UDR / MetLife | 13 | 14.6% | 9.7% | | 17.7% | | -0.1% | 5.1% | -3.0% | | ||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | Income/(Loss) | | | | | | | | | |
| UDR Investment (6) | from Investments | | | | | | | | | ||||||
Other Unconsolidated Investments (5) | Commitment | Funded | Balance | 1Q 23 (7) | | | | | | | | | ||||
| | | | | | | | | | | | | | | | |
RETV Funds | $ | 51,000 | $ | 25,380 | $ | 21,750 | $ | 1,182 | | | | | | | | |
RET Strategic Fund | | 25,000 | | 8,750 | | 9,166 | | (173) | | | | | | | | |
RET ESG Fund | | 10,000 | | 3,000 | | 2,824 | | (74) | | | | | | | | |
Climate Technology Funds | | 10,000 | | 6,948 | | 6,808 | | 44 | | | | | | | | |
Total | $ | 96,000 | $ | 44,078 | $ | 40,548 | $ | 979 | | | | | | | | |
| (1) | See Attachment 14 for definitions and other terms. |
| (2) | Represents NOI at 100% for the period ended March 31, 2023. |
| (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 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. |
19
Attachment 11(B)
UDR, Inc.
Developer Capital Program
March 31, 2023
(Dollars in Thousands)
(Unaudited) (1)
Developer Capital Program (2) | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | # of | UDR Investment | Return | Years to | | Upside | ||||
Community | Location | | Homes | Commitment (3) | Balance (3) | Rate | Maturity | | Participation | |||
| | | | | | | | | | | | |
Preferred Equity | | | | | | | | | | | | |
| | | | | | | | | | | | |
1300 Fairmount | Philadelphia, PA | | 471 | $ | 51,393 | $ | 71,988 | 8.5% | 0.5 | | Variable | |
Junction | Santa Monica, CA | | 66 | | 8,800 | | 15,328 | 12.5% | 0.6 | | - | |
Modera Lake Merritt | Oakland, CA | | 173 | | 27,250 | | 32,678 | 9.0% | 1.2 | | Variable | |
Infield Phase I | Kissimmee, FL | | 384 | | 16,044 | | 18,437 | 14.0% | 1.6 | | - | |
Thousand Oaks | Thousand Oaks, CA | | 142 | | 20,059 | | 25,454 | 9.0% | 1.9 | | Variable | |
Vernon Boulevard | Queens, NY | | 534 | | 40,000 | | 56,657 | 13.0% | 2.3 | | Variable | |
Makers Rise | Herndon, VA | | 356 | | 30,208 | | 34,819 | 9.0% | 2.8 | | Variable | |
121 at Watters | Allen, TX | | 469 | | 19,843 | | 23,013 | 9.0% | 3.0 | | Variable | |
Meetinghouse | Portland, OR | | 232 | | 11,600 | | 12,259 | 8.25% | 3.9 | | - | |
Heirloom | Portland, OR | | 286 | | 16,185 | | 16,885 | 8.25% | 4.2 | | - | |
Upton Place | Washington, DC | | 689 | | 52,163 | | 58,202 | 9.7% | 4.7 | | - | |
Portfolio Recapitalization (4) | Various | | 2,460 | | 102,000 | | 102,693 | 8.0% | 6.2 | | - | |
| | | | | | | | | | | | |
Total - Preferred Equity | | | 6,262 | $ | 395,545 | $ | 468,413 | 9.4% | 3.4 | | | |
| | | | | | | | | | | | |
Secured Loans | | | | | | | | | | | | |
| | | | | | | | | | | | |
Menifee | Menifee, CA | | 237 | $ | 24,447 | $ | 9,218 | 11.0% | 3.7 | | - | |
Riverside | Riverside, CA | | 482 | | 59,676 | | 29,089 | 11.0% | 3.7 | | - | |
Total - Secured Loans | | | 719 | $ | 84,123 | $ | 38,307 | 11.0% | 3.7 | | | |
| | | | | | | | | | | | |
Total - Developer Capital Program | | | 6,981 | $ | 479,668 | $ | 506,720 | 9.7% | 3.5 | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | 1Q 23 | | | | | | | | | | |
| | | | | | | | | | | | |
Income/(loss) from investments | | $ | 10,863 | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| (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 return prior to the period end. |
| (4) | A joint venture with 14 stabilized communities located in various markets. |
20
Attachment 12
UDR, Inc.
Capital Expenditure and Repair and Maintenance Summary
March 31, 2023
(In thousands, except Cost per Home)
(Unaudited) (1)
| | | | Three Months | | Capex | ||
| | Estimated | | Ended | Cost | as a % | ||
Capital Expenditures for Consolidated Homes (2) | | Useful Life (yrs.) | | March 31, 2023 | per Home | of NOI | ||
| | | | | | | | |
Average number of homes (3) | | | | | 54,347 | | | |
| | | | | | | | |
Recurring Cap Ex | | | | | | | | |
Asset preservation | | | | | | | | |
Building interiors | | 5 - 20 | | $ | 6,472 | $ | 119 | |
Building exteriors | | 5 - 20 | | | 1,038 | | 19 | |
Landscaping and grounds | | 10 | | | 365 | | 7 | |
Total asset preservation | | | | | 7,875 | | 145 | |
| | | | | | | | |
Turnover related | | 5 | | | 3,746 | | 69 | |
| | | | | | | | |
Total Recurring Cap Ex | | | | | 11,621 | | 214 | 4% |
| | | | | | | | |
NOI Enhancing Cap Ex | | 5 - 20 | | | 14,763 | | 272 | |
| | | | | | | | |
Total Recurring and NOI Enhancing Cap Ex | | | | $ | 26,384 | $ | 485 | |
| | | | | | | | |
| | | | | | | | |
| | | | Three Months | | | | |
| | | | Ended | | Cost | | |
Repair and Maintenance for Consolidated Homes (Expensed) | | March 31, 2023 | | per Home | | |||
| | | | | | | | |
Average number of homes (3) | | | | | 54,347 | | | |
| | | | | | | | |
Contract services | | | | $ | 9,742 | $ | 179 | |
| | | | | | | | |
Turnover related expenses | | | | | 6,239 | | 115 | |
| | | | | | | | |
Other Repair and Maintenance | | | | | | | | |
Building interiors | | | | | 4,135 | | 76 | |
Building exteriors | | | | | 1,239 | | 23 | |
Landscaping and grounds | | | | | 970 | | 18 | |
Total Repair and Maintenance | | | | $ | 22,325 | $ | 411 | |
| (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. |
21
Attachment 13
UDR, Inc.
2Q 2023 and Full-Year 2023 Guidance
March 31, 2023
(Unaudited) (1)
| | | | Full-Year 2023 Guidance | ||||
| | | | | | | | Change from |
Net Income, FFO, FFO as Adjusted and AFFO per Share and Unit Guidance | | 2Q 2023 | | Full-Year 2023 | | Prior Guidance | | Prior Midpoint |
| | | | | | | | |
Income/(loss) per weighted average common share, diluted | | $0.11 to $0.13 | | $0.47 to $0.55 | | $0.48 to $0.56 | | ($0.01) |
FFO per common share and unit, diluted | | $0.60 to $0.62 | | $2.44 to $2.52 | | $2.45 to $2.53 | | ($0.01) |
FFO as Adjusted per common share and unit, diluted | | $0.60 to $0.62 | | $2.45 to $2.53 | | $2.45 to $2.53 | | - |
Adjusted Funds from Operations ("AFFO") per common share and unit, diluted | | $0.54 to $0.56 | | $2.22 to $2.30 | | $2.22 to $2.30 | | - |
Annualized dividend per share and unit | | | | $1.68 | | $1.68 | | - |
| | | | | | | | |
| | | | | | | | Change from |
Same-Store Guidance | | | | Full-Year 2023 | | Prior Guidance | | Prior Midpoint |
| | | | | | | | |
Revenue growth / (decline) (Cash basis) | | | | 5.50% to 7.50% | | 5.50% to 7.50% | | - |
Revenue growth / (decline) (Straight-line basis) | | | | 5.75% to 7.75% | | 5.75% to 7.75% | | - |
Expense growth | | | | 4.00% to 5.50% | | 4.00% to 5.50% | | - |
NOI growth / (decline) (Cash basis) | | | | 6.00% to 8.50% | | 6.00% to 8.50% | | - |
NOI growth / (decline) (Straight-line basis) | | | | 6.25% to 8.75% | | 6.25% to 8.75% | | - |
| | | | | | | | |
| | | | | | | | Change from |
Sources of Funds ($ in millions) | | | | Full-Year 2023 | | Prior Guidance | | Prior Midpoint |
| | | | | | | | |
AFFO less Dividends | | | | $191 to $219 | | $191 to $219 | | - |
Debt Issuances/Assumptions and LOC Draw/(Paydown) | | | | $0 to $100 | | $0 to $100 | | - |
Dispositions and Developer Capital Program maturities | | | | $75 to $125 | | $75 to $125 | | - |
| | | | | | | | |
| | | | | | | | Change from |
Uses of Funds ($ in millions) | | | | Full-Year 2023 | | Prior Guidance | | Prior Midpoint |
| | | | | | | | |
Debt maturities inclusive of principal amortization (2) | | | | $5 | | $5 | | - |
Development spending and land acquisitions | | | | $75 to $175 | | $75 to $175 | | - |
Redevelopment and other non-recurring | | | | $75 to $125 | | $75 to $125 | | - |
Developer Capital Program funding | | | | $25 to $50 | | $25 to $50 | | - |
Acquisitions | | | | $0 | | $0 | | - |
NOI enhancing capital expenditures inclusive of Kitchen and Bath | | | | $75 to $85 | | $75 to $85 | | - |
| | | | | | | | |
| | | | | | | | Change from |
Other Additions/(Deductions) ($ in millions except per home amounts) | | | | Full-Year 2023 | | Prior Guidance | | Prior Midpoint |
| | | | | | | | |
Consolidated interest expense, net of capitalized interest and adjustments for FFO as Adjusted | | $172 to $178 | | $172 to $178 | | - | ||
Consolidated capitalized interest | | | | $9 to $13 | | $9 to $13 | | - |
General and administrative | | | | $64 to $70 | | $64 to $70 | | - |
Recurring capital expenditures per home | | | | $1,425 | | $1,425 | | - |
| | | | | | | | |
| (1) | See Attachment 14 for definitions and other terms. |
| (2) | Excludes short-term maturities related to the Company's unsecured commercial paper program. |
22
Attachment 14(A)
UDR, Inc.
Definitions and Reconciliations
March 31, 2023
(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.
Controllable Operating Margin: The Company defines Controllable Operating Margin as (i) rental income less Controllable Expenses (ii) divided by rental income. Management considers Controllable Operating Margin a useful metric as it provides investors with an indicator of the Company’s ability to limit the growth of expenses that are within the control of the Company.
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 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 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.
23
Attachment 14(B)
UDR, Inc.
Definitions and Reconciliations
March 31, 2023
(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 | | | | | 1Q 2023 | | | | | | ||
Income/(loss) from unconsolidated entities | | | | | $ | 9,707 | | | | | | |
Management fee | | | | | | 610 | | | | | | |
Interest expense | | | | | | 4,031 | | | | | | |
Depreciation | | | | | | 7,485 | | | | | | |
General and administrative | | | | | | 60 | | | | | | |
Developer Capital Program (excludes Menifee and Riverside) | | | | | | (10,122) | | | | | | |
Other (income)/expense | | | | | | 88 | | | | | | |
Realized (gain)/loss on real estate technology investments, net of tax | | | | | | 520 | | | | | | |
Unrealized (gain)/loss on real estate technology investments, net of tax | | | | | | (1,455) | | | | | | |
Total Joint Venture NOI at UDR's Ownership Interest | | | $ | 10,924 | | | | | | | ||
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 | 1Q 2023 | 4Q 2022 | 3Q 2022 | | 2Q 2022 | 1Q 2022 | | |||||
Net income/(loss) attributable to UDR, Inc. | $ | 30,964 | $ | 44,530 | $ | 23,605 | | $ | 5,084 | $ | 13,705 | |
Property management | | 12,945 | | 12,949 | | 12,675 | | | 11,952 | | 11,576 | |
Other operating expenses | | 3,032 | | 4,008 | | 3,746 | | | 5,027 | | 4,712 | |
Real estate depreciation and amortization | | 169,300 | | 167,241 | | 166,781 | | | 167,584 | | 163,622 | |
Interest expense | | 43,742 | | 43,247 | | 39,905 | | | 36,832 | | 35,916 | |
Casualty-related charges/(recoveries), net | | 4,156 | | 8,523 | | 901 | | | 1,074 | | (765) | |
General and administrative | | 17,480 | | 16,811 | | 15,840 | | | 16,585 | | 14,908 | |
Tax provision/(benefit), net | | 234 | | (683) | | 377 | | | 312 | | 343 | |
(Income)/loss from unconsolidated entities | | (9,707) | | (761) | | (10,003) | | | 11,229 | | (5,412) | |
Interest income and other (income)/expense, net | | (1,010) | | (1) | | 7,495 | | | (3,001) | | 2,440 | |
Joint venture management and other fees | | (1,242) | | (1,244) | | (1,274) | | | (1,419) | | (1,085) | |
Other depreciation and amortization | | 3,649 | | 4,823 | | 3,430 | | | 3,016 | | 3,075 | |
(Gain)/loss on sale of real estate owned | | (1) | | (25,494) | | - | | | - | | - | |
Net income/(loss) attributable to noncontrolling interests | | 1,961 | | 2,937 | | 1,540 | | | 280 | | 898 | |
Total consolidated NOI | $ | 275,503 | $ | 276,886 | $ | 265,018 | | $ | 254,555 | $ | 243,933 | |
24
Attachment 14(C)
UDR, Inc.
Definitions and Reconciliations
March 31, 2023
(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.
Same-Store Revenue with Concessions on a Cash Basis: Same-Store Revenue with Concessions on a Cash Basis is considered by the Company to be a supplemental measure to rental income on a straight-line basis which allows investors to evaluate the impact of both current and historical concessions and to more readily enable comparisons to revenue as reported by its peer REITs. In addition, Same-Store Revenue with Concessions on a Cash Basis allows an investor to understand the historical trends in cash concessions.
A reconciliation between Same-Store Revenue with Concessions on a Cash Basis to Same-Store Revenue on a straight-line basis (inclusive of the impact to Same-Store NOI) is provided below:
| 1Q 23 | | 1Q 22 | | 1Q 23 | | 4Q 22 | ||||
Revenue (Cash basis) | $ | 379,379 | | $ | 350,768 | | $ | 379,379 | | $ | 379,517 |
Concessions granted/(amortized), net | | 60 | | | (4,532) | | | 60 | | | 1,098 |
Revenue (Straight-line basis) | $ | 379,439 | | $ | 346,236 | | $ | 379,439 | | $ | 380,615 |
| | | | | | | | | | | |
% change - Same-Store Revenue with Concessions on a Cash basis: | | 8.2% | | | | | | 0.0% | | | |
% change - Same-Store Revenue with Concessions on a Straight-line basis: | | 9.6% | | | | | | -0.3% | | | |
| | | | | | | | | | | |
% change - Same-Store NOI with Concessions on a Cash basis: | | 9.5% | | | | | | -0.2% | | | |
% change - Same-Store NOI with Concessions on a Straight-line basis: | | 11.7% | | | | | | -0.6% | | | |
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 Cash Basis, divided by the product of occupancy and the number of apartment homes. A reconciliation between Same-Store Revenue with Concessions on a Cash Basis to Same-Store Revenue on a straight-line basis is provided above.
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.
25
Attachment 14(D)
UDR, Inc.
Definitions and Reconciliations
March 31, 2023
(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 2023 and second quarter of 2023 to forecasted FFO, FFO as Adjusted and AFFO per share and unit:
| | | | | Full-Year 2023 | | | ||||
| | | | | Low | | High | | | ||
| | | | | | | | | | | |
Forecasted net income per diluted share | | | | | $ | 0.47 | | $ | 0.55 | | |
Conversion from GAAP share count | | | | | | (0.02) | | | (0.02) | | |
Depreciation | | | | | | 1.97 | | | 1.97 | | |
Noncontrolling interests | | | | | | 0.01 | | | 0.01 | | |
Preferred dividends | | | | | | 0.01 | | | 0.01 | | |
Forecasted FFO per diluted share and unit | | | | | $ | 2.44 | | $ | 2.52 | | |
Legal and other costs | | | | | | - | | | - | | |
Casualty-related charges/(recoveries) | | | | | | 0.01 | | | 0.01 | | |
Realized/unrealized (gain)/loss on real estate technology investments | | | | | | - | | | - | | |
Forecasted FFO as Adjusted per diluted share and unit | | | | | $ | 2.45 | | $ | 2.53 | | |
Recurring capital expenditures | | | | | | (0.23) | | | (0.23) | | |
Forecasted AFFO per diluted share and unit | | | | | $ | 2.22 | | $ | 2.30 | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | 2Q 2023 | | | ||||
| | | | | Low | | High | | | ||
| | | | | | | | | | | |
Forecasted net income per diluted share | | | | | $ | 0.11 | | $ | 0.13 | | |
Conversion from GAAP share count | | | | | | (0.01) | | | (0.01) | | |
Depreciation | | | | | | 0.50 | | | 0.50 | | |
Noncontrolling interests | | | | | | - | | | - | | |
Preferred dividends | | | | | | - | | | - | | |
Forecasted FFO per diluted share and unit | | | | | $ | 0.60 | | $ | 0.62 | | |
Legal and other costs | | | | | | - | | | - | | |
Casualty-related charges/(recoveries) | | | | | | - | | | - | | |
Realized/unrealized (gain)/loss on real estate technology investments | | | | | | - | | | - | | |
Forecasted FFO as Adjusted per diluted share and unit | | | | | $ | 0.60 | | $ | 0.62 | | |
Recurring capital expenditures | | | | | | (0.06) | | | (0.06) | | |
Forecasted AFFO per diluted share and unit | | | | | $ | 0.54 | | $ | 0.56 | | |
26