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The following is an excerpt from a 8-K SEC Filing, filed by UDR, INC. on 11/10/2008.
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UDR, INC. - 8-K - 20081110 - EXHIBIT_99
Exhibit 99.1
(COVER)
The Right Properties in the Right Markets
Third Quarter 2008

 

 


 

(TABLE OF CONTENTS)
1 Portfolio Overview 3 Orange County, CA 7 Metro D.C. 11 San Francisco Bay Area, CA 15 Tampa, FL 19 Seattle, WA 23 Baltimore, MD 27 LA County, CA 31 Orlando, FL 35 Richmond, VA 39 Dallas, TX 43 Nashville, TN 47 San Diego County, CA 51 Monterey, CA 53 Jacksonville, FL 55 Norfolk / Virginia Beach, VA 57 Inland Empire, CA 59 Phoenix, AZ 61 Sacramento, CA 63 Portland, OR 65 Austin, TX Table of Contents

 

 


 

(PAGE 1)
UDR (NYSE:UDR) is a leading multifamily real estate investment trust (REIT) with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. For over 35 years, UDR has delivered long-term value to shareholders, the best standard of service to residents, and the highest quality experience for associates. Additional information can be found on the Company’s website at www.udr.com. UDR Portfolio Characteristics Homes in Active Devt.** Held for Future Devt.** Non- Mature Homes Rank Market Pro forma NOI  _____  % of Total* Same Store Homes Average Monthly Income*** 14.4 12.1 8.7 6.4 5.5 5.3 5.1 4.8 4.6 4.0 3.5 3.1 3.1 2.9 2.8 2.8 2.1 1.6 1.4 1.4 Orange County, CA Metro D.C. San Francisco Bay Area, CA Tampa, FL Seattle, WA Baltimore, MD LA County, CA Orlando, FL Richmond, VA Dallas, TX Nashville, TN San Diego County, CA Monterey / Salinas, CA Jacksonville, FL Norfolk / Virginia Beach, VA Inland Empire, CA Phoenix, AZ Sacramento, CA Portland, OR Austin, TX TOTAL****: 4,067 2,050 1,768 3,081 1,270 1,556 1,052 2,500 1,958 305 1,874 1,123 1,565 1,557 1,438 1,074 914 914 716 250 31,032 296 1,935 571 486 455 564 626 667 253 3,497 386 — — 300 — — 449 — — 390 10,875 510 615 200 — 704 — 408 — — 5,557 — 569 — — — — — — — — 8,563 $1,599 1,417 1,853 952 1,206 1,186 1,529 963 1,023 1,647 891 1,406 1,094 862 960 1,317 946 930 1,002 978 $1,193 — — — 249 274 — — 395 — 1,648 — — — — — — 382 — — — 2,948 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 *EOY pro forma full portfolio NOI, including jvs, planned acquisitions, developments, redevelopments, etc. **Includes joint-venture properties ***Per occupied home, as of Sept. 30, 2008 ****Excludes 2,108 SS homes, 208 non-mature homes and 359 homes in development in other UDR markets 1

 

 


 

(PAGE 2)
UDR has transformed its portfolio by completing a $1.7 billion sale of 25,684 homes and reinvesting $951 million to aquire 4,093 homes in 12 new communities. % NOI YTD As a result of these transactions: Our properties are concentrated in markets with high rent growth, strong job growth and low single family home affordability, and UDR’s average monthly rent has grown to nearly $1,200. Nearly 95 percent of our net operating income comes from our top 20 markets — with 50 percent coming from the West Coast and 24 percent coming from the Washington DC corridor. We intend to create value through the following redevelopment and development initiatives. Redevelopment Year-to-date, we have completed the redevelopment of 1,678 homes in six communities, at an average cost per home of approximately $46,600. Going forward, our redevelopment pipeline includes 598 apartment homes in two communities, with a total incremental investment by the Company of $29 million, or $48,500 per home. Development Year-to-date, we have completed the development of 2,017 homes in seven communities, (including one unconsolidated joint venture property and two pre-sale properties), at an average cost per home of $149,000. Going forward, our active development pipeline includes 2,321 homes in seven communities currently in development at an estimated cost of $342 million, or $147,000 per home. A majority of the financing on these projects is in place, with only $20 million of additional equity investment required from UDR. In addition, UDR has under contract through pre-sale agreements 684 homes in development in two communities at a projected cost of $93 million, or $136,000 per home. In addition, we have identified a number of future development opportunities with the potential to add 8,300 homes in our West Coast, East Coast and Texas markets. Included in these are 1,546 existing homes in five operating communities — with a net carrying value of $140 million delivering $10.9 million of annualized NOI. These opportunities will be pursued as financing becomes available and markets improve. 3.8% 1.9% MD 6.1% DC 7% VA 10.9% 44.2% 4.2% 2.3% FL 17.9% 1.7% % NOI per Market (YTD) West Coast — 50% East Coast — 24% Florida — 18% Tennessee — 4% Texas — 2% Arizona — 2% Average Monthly Rents vs. Peers AVB BRE ESS EQR PPS UDR HME CPT AIV CLP MAA $781 $740 $937 $966 $1,142 $1,244 $1,404 $1,348 $1,530 $1,943 $1,193 Source: Individual Company Reports 2

 

 


 

(UDR LOGO)   Orange County
Market Fact Sheet
Market Statistics & Peer Comparison
         
Orange County Portfolio   Homes  
Same Store Pool
    4,067  
Non-Matures
    296  
Homes in Development
     
Held for Future Development
    510  
 
     
Total
    4,873  
MRQ Mo. Inc./ Occ. Home (SS)
  $ 1,599  
MRQ Occupancy (SS)
    95.2 %
                 
Company   # Homes (SS)     Avg. Rent  
UDR
    4,067     $ 1,599  
ESS
    2,016       1,578  
BRE
    2,899       1,575  
CPT
    1,216       1,549  
EQR
    3,180       1,505  
AVB
    1,174       1,393  
AIV
    247       1,379  
 
           
 
    14,799     $ 1,547  
Orange County is UDR’s
#1 market and is expected
to contribute 14.4% of the
Company’s 2008 total
pro forma NOI.
Orange County Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 1,657     Ave. Market Rent   $ 1,547     Population     2,997,033  
Occupancy (MRQ)
    94.0 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     -2.1 %
Eff. Rent Growth ‘08F
    -0.9 %  
Home
  $ 3,050     Median Income   $ 84,100  
Eff. Rent Growth ‘09F
    -2.8 %  
Condo
  $ 2,568     Housing Stock        
Eff. Rent Growth ‘10F
    6.4 %   Median Home Price (MRQ)   $ 539,000     Renter     364,220  
Multifamily Permits
    2,858     Housing Affordability Score     39    
% of Total
    37.3 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
The Orange County, California market represents UDR’s largest concentration of apartment homes as measured by NOI. These homes are in premier costal locations; many communities are west of the 405 beltway, only minutes from the beach. The Company is creating value in this market through the following initiatives:
  Acquisitions: Mesa Verde Villas, a 296-home community, was purchased in Q2 in Costa Mesa, CA. This community is a twin to Pine Brook Village, a 200-home community. Both were constructed by the same builder and share the same architecture, design and floor plans. Pine Brook Village and Mesa Verde also share a main entry into both properties, making Mesa Verde an excellent candidate to be merged with Pine Brook. This merger creates value immediately through operating efficiencies in leasing staff, maintenance staff and purchasing.
 
  Redevelopment: More than 1,600 kitchen and bath renovations have been completed at an average cost of $10,800 and we are realizing an average return of 13.3 percent. An example of average rent increases: Huntington Vista — $1,600 before, $1,775 after, a 10.9% increase.
 
  Potential Future Development: Foxborough, a 90-home operating community with in Orange, CA with annualized NOI of $1.3 million, is a potential future development opportunity, which would nearly triple the number of homes to 260.
The local economy has recently softened due to the loss of jobs in the sub-prime lending industry, but long-term prospects are excellent. The region enjoys employment diversity, a highly educated work force and an attractive year round climate affording a variety of recreational activities.

 

3


 

Orange County
Market Fact Sheet
(PHOTOS)

 

4


 

Orange County
Market Fact Sheet
(PHOTOS)

 

5


 

Orange County
Market Fact Sheet
(MAP)
                                         
            Year Built                     Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.     Occupancy     Home  
1 Pacific Palms
    149       1962               97.5 %   $ 1,369  
2 Harbor at Mesa Verde
    384       2003       K/B       94.6 %     1,640  
3 Coronado North
    732       2000       K/B       94.3 %     1,489  
4 Missions at Back Bay
    104       1969       K/B       96.9 %     1,521  
5 Vista del Rey
    116       1969       K/B       96.8 %     1,434  
6 Foxborough
    90       1969               97.0 %     1,810  
7 Huntington Vista
    220       1970       K/B       96.1 %     1,793  
8 The Arboretum at Lake Forest
    225       1970       K/B       91.6 %     1,591  
9 Coronado South
    715       2000       K/B       94.8 %     1,528  
10 Pacific Shores
    264       2003       K/B       95.9 %     1,574  
11 Huntington Villas
    400       1972       K/B       95.8 %     1,719  
12 Villa Venetia
    468       2008       Full       95.7 %     1,711  
13 Pine Brook Village
    200       1979       K/B       95.5 %     1,718  
 
                             
Sub Total
    4,067                       95.2 %     1,599  
Non-Mature and Other
                                       
14 Mesa Verde Villas (Pine Brook II)
    296       1975               96.0 %     1,732  
 
                             
Sub Total
    296                       96.0 %     1,732  
 
                             
Grand Total
    4,363                       95.2 %   $ 1,608  
 
                             
                                                 
            Current     Est.     Est. Cost     Est. Cost     Est.  
Development Opportunities   Status     # Homes     # Homes     ($000)     per Home     Completion  
6 Foxborough II
  Future     90       260     $ 77,000     $ 296,000     TBD^
15 Mission Viejo
  Future     (land)       250       90,000       360,000     TBD^
 
                                           
Total
                    510     $ 167,000                  
 
                                           
^ Properties will move into active development as financing opportunities and market conditions improve.

 

6


 

(UDR LOGO)   Metro DC
Market Fact Sheet
Market Statistics & Peer Comparison
         
Metro DC Portfolio   Homes  
Same Store Pool
    2,050  
Non-Matures
    1,935  
Homes in Development
     
Held for Future Development
    615  
 
     
Total
    4,600  
MRQ Mo. Inc./ Home (SS)
  $ 1,417  
MRQ Occupancy (SS)
    96.9 %
                 
Company   # Homes (SS)     Ave. Rent  
AVB
    2,793     $ 1,943  
PPS
    1,972       1,874  
CPT
    3,081       1,582  
EQR
    7,859       1,481  
UDR
    2,050       1,417  
HME
    4,549       1,308  
AIV
    6,663       1,254  
CLP
    258       886  
 
           
 
    29,225     $ 1,474  
Metro DC is UDR’s #2
market and is expected to
contribute 12.1% of the
Company’s 2008 total
pro forma NOI.
Metro DC Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 1,380     Ave. Market Rent   $ 1,474     Population     4,151,047  
Occupancy (MRQ)
    94.3 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     1.5 %
Eff. Rent Growth ‘08F
    2.8 %  
Home
  $ 2,137     Median Income   $ 99,000  
Eff. Rent Growth ‘09F
    3.0 %  
Condo
  $ 1,785     Housing Stock        
Eff. Rent Growth ‘10F
    4.9 %   Median Home Price (MRQ)   $ 370,300     Renter     511,015  
Multifamily Permits
    5,671     Housing Affordability Score     85    
% of Total
    33.3 %
Source: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
UDR is expanding its presence in this market by buying communities in lease-up and well-located properties with renovation potential.
Value Creation:
  In the first quarter of 2008, we purchased Circle Towers, a mixed-use development that includes 606 apartment homes and more than 50,000 SF of office and retail space for $144.3M. Also in the first quarter, we purchased Delancey at Shirlington Village, a 241-home community in Alexandria, VA, for $85M.
 
  In the second quarter of 2008, we completed the full redevelopment of Wellington Place, a 372-home community in Manassas, VA that we purchased for $50.1M, or $135,000 per home, in 2005. We expect to realize an 4.9% cash-on-cash return from the incremental investment, a 22% improvement in cash flow, and estimated value creation of approximately $6.4M.
 
  In the second quarter of 2008, we began full redevelopment of Taylor Place, a 218-home mid-rise community, located in Arlington, VA. This $13.9M redevelopment project is expected to realize an 8.2% return on incremental investment, a 52% improvement in cash flow, and estimated value creation of $15.3M.
 
  We’ve completed more than 1,500 kitchen and bath renovations at an average cost of $9,836 and are realizing an average annualized return of 9.2%.

 

7


 

Metro DC
Market Fact Sheet
(PHOTOS)

 

8


 

Metro DC
Market Fact Sheet
(PHOTOS)

 

9


 

Metro DC
Market Fact Sheet
(PHOTOS)
                                         
            Year Built                     Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.     Occupancy     Home  
1 Dominion Middle Ridge
    280       1990       K/B       96.9 %   $ 1,310  
2 Dominion Lake Ridge
    192       1987       K/B       94.7 %     1,274  
3 Presidential Greens
    396       1938       K/B       96.1 %     1,134  
5 Ridgewood I
    274       1988       K/B       96.4 %     1,421  
6 The Calvert
    187       1962       K/B       96.0 %     1,357  
7 Waterside Towers
    550       1971       K/B       98.6 %     1,518  
8 Andover House
    171       2004               97.1 %     2,314  
 
                             
Subtotal
    2,050                       96.9 %     1,417  
Non-Mature and Other
                                       
4 Taylor Place — under redevelopment
    218       2008       Full       30.5 %     1,092  
9 Sullivan Place — in lease-up
    498       2007               92.0 %     1,668  
10 Wellington Place
    372       2008       Full       93.4 %     1,238  
11 Delancey at Shirlington — in lease-up
    241       2008               90.3 %     1,842  
12 Circle Towers
    606       1972       Full       91.4 %     1,608  
 
                             
Subtotal
    1,935                       84.9 %     1,557  
 
                             
Grand Total
    3,985                       91.1 %   $ 1,480  
 
                             
                                                 
            Current     Est.     Est. Cost     Est. Cost     Est.  
Development Opportunities   Status     # Homes     # Homes     ($000)     per Home     Completion  
13 2400 14 th Street
  Future           255     $ 120,000     $ 470,600     TBD^
14 Signal Hill — Woodbridge, VA
  Future           360       82,700       230,000     TBD^
 
                                           
Total
                    615     $ 202,700                  
 
                                           
^ Properties held for future development pending financing.

 

10


 

(UDR LOGO)   San Francisco
Market Fact Sheet
Market Statistics & Peer Comparison
         
San Francisco Portfolio   Homes  
Same Store Pool
    1,768  
Non-Matures
    571  
Homes in Development
     
Held for Future Development
    200  
 
     
Total
    2,539  
MRQ Mo. Inc./ Occ. Home (SS)
  $ 1,853  
MRQ Occupancy (SS)
    96.5 %
                 
Company   # Homes (SS)     Ave. Rent  
AVB
    2,482     $ 2,266  
BRE
    1,265       2,253  
EQR
    736       1,996  
UDR
    1,768       1,853  
ESS
    765       1,614  
AIV
    496       1,607  
 
           
 
    7,512     $ 2,030  
San Francisco is UDR’s #3
market and is expected to
contribute 8.7% of the
Company’s 2008 total pro forma NOI.
San Francisco Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 2,062     Ave. Market Rent   $ 2,030     Population     1,720,056  
Occupancy (MRQ)
    95.6 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     0.7 %
Eff. Rent Growth ‘08F
    5.1 %  
Home
  $ 4,355     Median Income   $ 94,300  
Eff. Rent Growth ‘09F
    2.9 %  
Condo
  $ 3,668     Housing Stock        
Eff. Rent Growth ‘10F
    6.6 %   Median Home Price (MRQ)   $ 809,000     Renter     330,681  
Multifamily Permits
    2,605     Housing Affordability Score     43    
% of Total
    49.1 %
Source: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
In July 2008, the Company acquired Almaden Lake Village, a 250-home community in San Jose, located adjacent to the Almaden Station for the Valley Transit Authority (VTA). This station provides direct light rail access to Silicon Valley employment centers and downtown San Jose. The property is also located one mile from the popular Westfield Oakridge Regional Mall, and the property is adjacent to Lake Almaden, providing residents direct access to a popular recreational area.
In the first quarter of 2008, UDR acquired Edgewater, a 193-home community in the Mission Bay district of San Francisco. The property was constructed in 2007 and is strategically located near public transportation and entertainment venues.
In the fourth quarter of 2007, the Company expanded its presence in this market with the purchase of Crest Marin, a 104-home community in San Rafael. The community is located directly adjacent to Highlands of Marin, an existing UDR property. Both properties will be completely renovated with new exterior siding, kitchens, baths, and more with expected rent increases of approximately $200 - $250 per home.
The company is improving existing homes though its kitchen and bath renovation program. Over 350 kitchen and bath renovations have been completed at an average cost of $14,250 and we are realizing an average annual return of 9.8%.
The region enjoys employment diversity, a highly educated work force and an attractive year round climate affording a variety of recreational activities. The median existing home price is $809,000 making this one of the least affordable markets in the U.S.

 

11


 

San Francisco
Market Fact Sheet
(PHOTOS)

 

12


 

San Francisco
Market Fact Sheet
(PHOTOS)

 

13


 

San Francisco
Market Fact Sheet
(MAP)
                                         
Operating Properties   # Homes     Year Built
ReDev
    Redev.     Occupancy     Inc. per Occ.
Home
 
1 2000 Post Street I
    304       1987       K/B       98.1 %   $ 2,320  
2 Birch Creek
    184       1968               97.2 %     1,792  
3 Highlands of Marin
    220       2008       Full       94.8 %     1,676  
4 Marina Playa
    272       1971               97.4 %     1,708  
5 Crossroads Apartments
    130       1986       K/B       94.4 %     1,449  
6 River Terrace
    250       2005               97.8 %     2,111  
7 Lake Pines
    288       2008               94.5 %     1,585  
8 Bay Terrace
    120       1962               97.7 %     1,917  
 
                             
Subtotal
    1,768                       96.5 %     1,853  
Non-Mature
                                       
1 2000 Post Street II (in lease-up)
    24       2007               86.9 %     2,298  
3 Highlands of Marin II (in lease-up)
    104       2008       Full       90.0 %     1,280  
9 Edgewater
    193       2008               93.6 %     2,929  
10 Almaden Lake Village
    250       1999               97.1 %     1,613  
 
                             
Subtotal
    571                       94.2 %     2,024  
 
                             
Grand Total
    2,339                       95.9 %   $ 1,894  
 
                             
                                                 
            Current     Est.     Est. Cost     Est. Cost     Est.  
Development Opportunities   Status     # Homes     # Homes     ($000)     per Home     Completion  
8 Bay Terrace^
  Future     120       200     $ 79,000     $ 395,000     TBD^
 
                                           
Total
                    200     $ 79,000                  
 
                                           
^Bay Terrace currently has a net carrying value of $21M and delivers annualized NOI of $1.8M. This property will move into active development as financing opportunities and market conditions improve.

 

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(UDR LOGO)   Tampa
Market Fact Sheet
Market Statistics & Peer Comparison
         
Tampa Portfolio   Homes  
Same Store Pool
    3,081  
Non-Matures
    486  
Homes in Development
    249  
Held for Future Development
     
 
     
Total
    3,816  
MRQ Mo. Inc./ Occ. Home (SS)
  $ 952  
MRQ Occupancy (SS)
    94.3 %
                 
Company   # of Homes (SS)     Ave. Rent  
PPS
    1,644     $ 1,390  
UDR
    3,081       952  
CLP
    318       933  
MAA
    1,120       850  
CPT
    5,503       839  
EQR
    2,887       812  
AIV
    3,658       806  
 
           
 
    18,211     $ 899  
Tampa is UDR’s #4 market
and is expected to
contribute 6.4% of the
Company’s 2008 total pro forma NOI.
Tampa Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 817     Ave. Market Rent   $ 899     Population     2,723,949  
Occupancy (MRQ)
    91.2 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     -1.6 %
Eff. Rent Growth ‘08F
    -3.0 %  
Home
  $ 1,226     Median Income   $ 56,500  
Eff. Rent Growth ‘09F
    -4.8 %  
Condo
  $ 1,004     Housing Stock        
Eff. Rent Growth ‘10F
    1.0 %   Median Home Price (MRQ)   $ 180,800     Renter     321,771  
Multifamily Permits
    4,204     Housing Affordability Score     96    
% of Total
    29.0 %
Source: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
The Company has demonstrated success in creating additional value from its Tampa properties in a variety of ways:
  New Development — In the third quarter of 2008, we completed the purchase of a 249-home community, Vintage Lofts, at North Hyde Park in Tampa, utilizing 1031 exchange funds from the March 2008 portfolio sale. This property is currently under development at a budgeted cost of $52M, with an expected completion date of 1Q ‘09.
 
  Redevelopment — we recently completed full redevelopment The Breyley, a 209-home community in Clearwater. In addition to the redevelopment program, we have completed more than 1,600 kitchen and bath renovations.
Recent issues in the housing and lending sectors have slowed Tampa’s economy but AXIOMetrics forecasts job growth in a number of sectors, including education and health services, government, other services, leisure and hospitality and trade, transportation and utilities.

 

15


 

Tampa
Market Fact Sheet
(PHOTOS)

 

16


 

Tampa
Market Fact Sheet
(PHOTOS)

 

17


 

Tampa
Market Fact Sheet
(MAP)
                                         
            Year Built                     Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.     Occupancy     Home  
1 Summit West
    266       1972             92.9 %   $ 869  
2 Lakewood Place
    346       1986       K/B       94.2 %     845  
3 Hunters Ridge
    352       1992       K/B       91.7 %     811  
4 Bay Meadows
    288       1985       K/B       95.5 %     985  
5 Cambridge Woods
    275       1985       K/B       93.8 %     861  
6 Sugar Mill Creek
    212       1988       K/B       96.2 %     895  
7 Inlet Bay at Gateway
    464       1988       Full       94.9 %     977  
8 MacAlpine Place
    478       2007             95.1 %     1,118  
9 Island Walk
    400       1985       Full       94.2 %     1,057  
 
                             
Subtotal
    3,081                       94.3 %     952  
Non-Mature
                                       
10 The Breyley Apartments
    209       2008       Full       93.0 %     973  
11 Gallery at Bayport (held for disposition)
    277                       74.9 %     958  
Subtotal
    486                       82.6 %     965  
 
                             
Grand Total
    3,567                       92.7 %   $ 954  
 
                             
                                                 
            Current     Est.     Est. Cost     Est. Cost     Expected  
Development Opportunities   Status     # Homes     # Homes     ($000)     per Home     Completion  
12 Vintage Lofts
  Active           249     $ 52,000     $ 208,800       1Q 09  
 
                                           
Total
                    249     $ 52,000                  
 
                                           

 

18


 

(UDR LOGO)   Seattle
Market Fact Sheet
Market Statistics & Peer Comparison
         
Seattle Portfolio   Homes  
Same Store Pool
    1,270  
Non-Matures
    455  
Homes in Development
    274  
Held for Future Development
    704  
 
     
Total
    2,703  
MRQ Mo. Inc./ Occ. Home (SS)
  $ 1,206  
MRQ Occupancy (SS)
    96.3 %
                 
Company   # of Homes (SS)     Ave. Rent  
BRE
    3,491     $ 1,338  
AVB
    2,492       1,316  
AIV
    468       1,265  
UDR
    1,270       1,206  
ESS
    5,164       1,184  
EQR
    6,886       1,170  
 
           
 
    19,771     $ 1,226  
Seattle is UDR’s #5 market
and is expected to
contribute 5.5% of the
Company’s 2008 total
pro forma NOI.
Seattle Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 1,212     Ave. Market Rent   $ 1,226     Population     2,536,182  
Occupancy (MRQ)
    94.3 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     2.3 %
Eff. Rent Growth ‘08F
    4.8 %  
Home
  $ 2,291     Median Income   $ 81,400  
Eff. Rent Growth ‘09F
    0.9 %  
Condo
  $ 1,917     Housing Stock        
Eff. Rent Growth ‘10F
    1.7 %   Median Home Price (MRQ)   $ 380,500     Renter     367,516  
Multifamily Permits
    7,943     Housing Affordability Score     64    
% of Total
    36.0 %
Source: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
 
UDR has been expanding its presence in the Seattle market in a number of ways, including:
  The acquisition of two new communities in 2008:
    Island Square, a mixed-use development with 235 apartment homes, 25K square feet of retail and 14K square feet of office space, located on Mercer Island, with access to both downtown Seattle and Bellevue job centers; and
 
    Hearthstone at Merrill Creek, a 220-home community located in Merrill Creek Business Park, home to employers including Campbell’s Soup, TRW Aeronautical Systems, The Fluke Company, and Boeing.
  The acquisition of Borgata Apartments in May, 2007. This is a mixed-use community with 71-apartment homes and 5,358 square feet of retail space in Bellevue.
 
  Closing on a 49% joint venture interest in 989elements in January, 2007. This is a recently completed 23-story high-rise mixed use property located in the central business district of Bellevue with 166-apartment homes and 17,611 square feet of commercial space.
 
  UDR has two joint venture developments with Su Development in which UDR has a 49% interest:
    Ashwood Commons, a 274-home high-rise community with ground floor retail. Construction is underway with expected completion in the third quarter of 2009.
 
    Bellevue Plaza, a 430-home high-rise community with ground floor retail. This property is planned for future development.

 

19


 

Seattle
Market Fact Sheet
(PHOTOS)

 

20


 

Seattle
Market Fact Sheet
(PHOTOS)

 

21


 

Seattle
Market Fact Sheet
(MAP)
                                         
            Year Built                     Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.     Occupancy     Home  
1 Hilltop
    156       1985       K/B       97.2 %   $ 1,010  
2 Crown Pointe
    196       1987       K/B       96.0 %     952  
3 Arbor Terrace
    276       1996       K/B       95.4 %     908  
4 Aspen Creek
    162       1996             95.5 %     969  
5 The Hawthorne Apartments
    284       2003             97.9 %     1,401  
6 The Kennedy Building
    125       2005             94.8 %     1,679  
8 Borgata Apartment Homes
    71       2001       K/B       96.1 %     2,438  
 
                             
Subtotal
    1,270                       96.3 %     1,206  
Non-Mature and Other
                                       
7 989elements (Operating JV — 49%)
    166       2007             97.1 %     1,911  
9 Hearthstone at Merrill Creek
    220       2000             94.9 %     1,182  
10 Island Square
    235       2007             90.3 %     1,776  
 
                             
Subtotal (UDR)*
    455                       92.5 %     1,482  
 
                             
Grand Total (UDR)*
    1,725                       95.3 %   $ 1,277  
 
                             
* Excludes joint venture homes
                                                 
            Current     Est.     Est. Cost     Cost per     Expected  
Development Opportunities   Status     # Homes     # Homes     ($000)     Home     Completion  
11 Ashwood Commons (JV — 49%)**
  Active           274     $ 49,000     $ 365,000       3Q 09  
12 Bellevue Plaza (JV — 49%)**
  Future           430       66,000       314,000     TBD^
 
                                           
Total
                    274     $ 115,000                  
 
                                           
** Est. costs, except for cost per home, are calculated based on UDR’s ownership percentage of 49%.
^ This property will move into active development as financing opportunities and market conditions improve.

 

22


 

(UDR LOGO)   Baltimore
Market Fact Sheet
Market Statistics & Peer Comparison
         
Baltimore Portfolio   Homes  
Same Store Pool
    1,556  
Non-Matures
    564  
Homes in Development
     
Held for Future Development
     
 
     
Total
    2,120  
MRQ Mo. Inc./ Home (SS)
  $ 1,186  
MRQ Occupancy (SS)
    96.8 %
                 
Company   # of Homes (SS)     Ave. Rent  
AEC
    316     $ 1,426  
CPT
    628       1,372  
AVB
    1,278       1,201  
UDR
    1,556       1,186  
AIV
    1,438       1,137  
EQR
    438       1,055  
HME
    6,114       1,006  
 
           
 
    11,768     $ 1,100  
Baltimore is UDR’s #6
market and is expected to
contribute 5.3% of the
Company’s 2008 total
pro forma NOI.
Baltimore Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 1,040     Ave. Market Rent   $ 1,100     Population     2,668,056  
Occupancy (MRQ)
    94.0 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     0.6 %
Eff. Rent Growth ‘08F
    1.6 %  
Home
  $ 1,854     Median Income   $ 78,200  
Eff. Rent Growth ‘09F
    1.9 %  
Condo
  $ 1,542     Housing Stock        
Eff. Rent Growth ‘10F
    2.9 %   Median Home Price (MRQ)   $ 280,500     Renter     307,537  
Multifamily Permits
    1,939     Housing Affordability Score     89    
% of Total
    30.9 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
In the first quarter of 2008, we acquired Dulaney Crescent, a 264-home community in Towson, MD. The Company has demonstrated success in creating additional value in this market in a variety of ways:
  Redevelopment — in the second quarter of 2008, we completed the full redevelopment of Dominion Great Oaks, a 300-home community now known as Ellicott Grove. This is expected to result in a 7.9% cash-on-cash return, for total value creation of $16.1 million.
 
  In addition to the redevelopment program, we have completed more than 1,000 kitchen and bath renovations.
The area has a stable employment base led by substantial government jobs and institutional employment in the education and health sectors.

 

23


 

Baltimore
Market Fact Sheet
(PHOTOS)

 

24


 

Baltimore
Market Fact Sheet
(PHOTOS)

 

25


 

Baltimore
Market Fact Sheet
(MAP)
                                         
            Year Built                     Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.     Occupancy     Home  
1 Dominion Kings Place
    170       1983       K/B       97.2 %   $ 1,198  
2 Dominion at Eden Brook
    232       1984       K/B       96.5 %     1,233  
3 Dominion Constant Friendship
    136       1990       K/B       97.0 %     1,142  
4 Lakeside Mill
    192       1989       K/B       96.9 %     1,102  
5 Tamar Meadow
    178       1990       K/B       95.8 %     1,425  
6 Calvert’s Walk
    276       1988       K/B       97.5 %     1,113  
7 Arborview
    372       1992       K/B       96.7 %     1,141  
 
                             
Subtotal
    1,556                       96.8 %     1,186  
Non-Mature
                                       
8 Dulaney Crescent
    264       2003             92.6 %     1,583  
9 Ellicott Grove
    300       2008       Full       95.3 %     1,297  
 
                             
Subtotal
    564                       94.0 %     1,429  
 
                             
Grand Total
    2,120                       96.1 %   $ 1,249  
 
                             

 

26


 

(UDR LOGO)   Los Angeles County
Market Fact Sheet
Market Statistics & Peer Comparison
         
LA County Portfolio   Homes  
Same Store Pool
    1,052  
Non-Matures
    626  
Homes in Development
     
Held for Future Development
    408  
 
     
Total
    2,086  
MRQ Mo. Inc./ Home (SS)
  $ 1,529  
MRQ Occupancy (SS)
    94.9 %
                 
Company   # of Homes (SS)     Ave. Rent  
AIV
    2,179     $ 2,600  
CPT
    538       2,090  
ESS
    3,016       1,874  
AVB
    2,392       1,837  
BRE
    2,237       1,761  
EQR
    6,079       1,686  
UDR
    1,052       1,529  
 
           
 
    17,439     $ 1,865  
LA County is UDR’s #7
market and is expected to
contribute 5.1% of the
Company’s 2008 total
pro forma NOI.
LA County Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 1,817     Ave. Market Rent   $ 1,865     Population     9,878,554  
Occupancy (MRQ)
    93.6 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     -0.5 %
Eff. Rent Growth ‘08F
    0.2 %  
Home
  $ 2,489     Median Income   $ 59,800  
Eff. Rent Growth ‘09F
    0.4 %  
Condo
  $ 2,087     Housing Stock        
Eff. Rent Growth ‘10F
    2.7 %   Median Home Price (MRQ)   $ 435,000     Renter     1,623,435  
Multifamily Permits
    3,942     Housing Affordability Score     53    
% of Total
    51.0 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
UDR is expanding its presence in this market with one recent acquisition, one recently completed development and one recently completed redevelopment:
  Tierra del Rey, Marina del Ray, CA — a 170-home community acquired in the fourth quarter of 2007 for $76 million. Built in 1999, this community is undergoing a kitchen and bath renovation.
 
  Jefferson at Marina del Rey — 298 homes developed at an average cost of $463,000 per home in a joint venture with JPI. This property was completed in the third quarter, 2008 and is now in lease-up.
 
  Pine@Sixth, a 158-home redevelopment community completed in the third quarter of 2008.
The local economy has recently softened, however key local industries including leisure and hospitality, other services, and education and health Services, the entertainment sector and the ports of Los Angeles and Long Beach remain stable. The region enjoys a highly educated work force and an attractive year round climate affording a variety of recreational activities.

 

27


 

Los Angeles County
Market Fact Sheet
(PHOTOS)

 

28


 

Los Angeles County
Market Fact Sheet
(PHOTOS)

 

29


 

Los Angeles County
Market Fact Sheet
(MAP)
                                         
            Year Built                     Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.     Occupancy     Home  
1 The Crest at Phillips Ranch
    501       1989       K/B       94.5 %   $ 1,588  
2 Rosebeach
    174       1970       K/B       93.6 %     1,447  
3 The Villas at San Dimas
    156       1981       K/B       95.5 %     1,500  
4 The Villas at Bonita
    102       1981             95.3 %     1,496  
5 Ocean Villa
    119       1965             97.3 %     1,471  
 
                             
Subtotal
    1,052                       94.9 %     1,529  
Non-Mature and Other
                                       
6 Tierra del Rey
    170       1999       K/B       95.4 %     2,499  
7 Pine@Sixth
    158       2008       Full       84.1 %     1,266  
8 Jefferson at Marina del Rey (in lease-up)
    298       2008             37.9 %     2,661  
 
                             
Subtotal
    626                       79.7 %     2,142  
 
                             
Grand Total
    1,678                       89.9 %   $ 1,707  
 
                             
                                                 
            Current     Est.     Est. Cost     Est. Cost     Est.  
Development Opportunities   Status     # Homes     # Homes     ($000)     per Home     Completion  
9 Grandview
  Future           218     $ 67,000     $ 307,000     TBD^
10 3033 Wilshire
  (land)           190       100,900       531,000     TBD^
 
                                           
Total
                    408     $ 167,900                  
 
                                           
^ Grandview is an operating property with a net carrying value of $10M, delivering annualized NOI of $.6M. Wilshire is entitled land with an estimated net carrying value of $11M. These properties will move into active development as financing opportunities and market conditions improve.

 

30


 

     
(UDR LOGO)
  Orlando
Market Fact Sheet
Market Statistics & Peer Comparison
         
Orlando Portfolio   Homes  
Same Store Pool
    2,500  
Non-Matures
    667  
Homes in Development
    395  
Held for Future Development
     
 
     
Total
    3,562  
MRQ Mo. Inc./ Home (SS)
  $ 963  
MRQ Occupancy (SS)
    92.1 %
                 
Company   # of Homes (SS)     Ave. Rent  
PPS
    427     $ 1,473  
CLP
    2,251       1,007  
AEC
    288       992  
UDR
    2,500       963  
EQR
    6,960       924  
CPT
    3,296       904  
AIV
    3,888       797  
MMA
    288       792  
 
           
 
    19,898     $ 921  
Orlando is UDR’s #8
market and is expected to
contribute 4.8% of the
Company’s 2008 total
pro forma NOI.
Orlando Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 833     Ave. Market Rent   $ 921     Population     2,032,496  
Occupancy (MRQ)
    90.5 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     -0.1 %
Eff. Rent Growth ‘08F
    -3.1 %        Home   $ 1,452     Median Income   $ 59,200  
Eff. Rent Growth ‘09F
    -2.5 %        Condo   $ 1,198     Housing Stock        
Eff. Rent Growth ‘10F
    0.9 %   Median Home Price (MRQ)   $ 223,500     Renter     248,958  
Multifamily Permits
    6,124     Housing Affordability Score     84          % of Total     32.8 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
UDR has demonstrated success in creating additional value from its Orlando properties in a variety of ways:
    Redevelopment — In 2008, we completed full redevelopment of two communities: Altamira Place and Canopy Villas (656 homes).
 
    Kitchen and Bath Program: We’ve completed more than 800 kitchen and bath renovations at an average cost of $13,800 and are realizing an average annual return of 9.8%.
 
    Development: In the first quarter of 2008, we completed the purchase of a presale community, The Place at Millenia. Phase one, which included 371 homes. Phase II, which includes 395 homes, is estimated to be completed in 2010.
Orlando’s economy has been impacted by the housing slump and high fuel prices. The local economy in influenced by the leisure and hospitality industry but is diversified with significant employment in the transportation and utility sectors as well.

 

31


 

Orlando
Market Fact Sheet
(GRAPHIC)

 

32


 

Orlando
Market Fact Sheet
(GRAPHIC)

 

33


 

Orlando
Market Fact Sheet
(GRAPHIC)
                                     
            Year Built                 Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.   Occupancy     Home  
1 Seabrook
    200       2004         89.4 %   $ 961  
2 Regatta Shores
    256       2007     Full     88.3 %     813  
3 Alafaya Woods
    296       2006     Full     89.8 %     1,002  
4 Los Altos
    328       2004     K/B     91.2 %     948  
5 Lotus Landing
    260       2006     K/B     90.5 %     839  
6 Seville on the Green
    170       2004         94.5 %     988  
7 Ashton at Waterford Lakes
    292       2000     Full     95.8 %     1,147  
8 Arbors at Lee Vista
    338       2007     K/B     93.0 %     999  
9 Altamira Place
    360       2007     Full     95.0 %     936  
 
                         
Subtotal
    2,500                   92.1 %     963  
Non-Mature and Other
                                   
10 Canopy Villas (in lease-up)
    296       2007     Full     91.7 %     1,005  
11 The Place at Millenia, Phase I (in lease-up)
    371       2007     Full     81.9 %     921  
 
                         
Subtotal
    667                   86.3 %     961  
 
                         
Grand Total
    3,167                   90.9 %   $ 963  
                                         
            Est.     Est. Cost     Est. Cost     Expected  
Development Opportunities   Status     # Homes     ($000)     per Home     Completion  
11 The Place at Millenia (Phase II)^
  Active     395     $ 64,000     $ 162,000       2010^  
 
                                   
Total
            395     $ 64,000     $ 162,000          
^ Presale property, construction pending financing by 3 rd party developer.

 

34


 

     
(UDR LOGO)
  Richmond
Market Fact Sheet
Market Statistics & Peer Comparison
         
Richmond Portfolio   Homes  
Same Store Pool
    1,958  
Non-Matures
    253  
Homes in Development
     
Held for Future Development
     
 
     
Total
    2,211  
MRQ Mo. Inc./ Home (SS)
  $ 1,023  
MRQ Occupancy (SS)
    96.3 %
                 
Company   # of Homes (SS)     Ave. Rent  
UDR
    1,958     $ 1,023  
AEC
    240       1,000  
AIV
    744       869  
CLP
    1,368       838  
 
           
 
    4,310     $ 936  
Richmond is UDR’s #9
market and is expected to
contribute 4.6 % of the
Company’s 2008 total
pro forma NOI.
Richmond Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 900     Ave. Market Rent   $ 936     Population     1,212,977  
Occupancy (MRQ)
    93.8 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     0.5 %
Eff. Rent Growth ‘08F
    1.2 %        Home   $ 1,452     Median Income   $ 69,300  
Eff. Rent Growth ‘09F
    0.9 %        Condo   $ 1,198     Housing Stock        
Eff. Rent Growth ‘10F
    1.9 %   Median Home Price (MRQ)   $ 225,700     Renter     146,226  
Multifamily Permits
    853     Housing Affordability Score     n/a          % of Total     31.2 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
UDR’s apartment communities in the Richmond market are in excellent locations and the Company has invested to modernize the homes in several ways:
    Redevelopment: Two communities, Legacy at Mayland and Gayton Pointe Townhomes, have been completely redeveloped. Legacy at Mayland, completed in 2007, produced an increase in cash flow of 85% and estimated value creation of $33.6M. Construction at Gayton Pointe has recently been completed with focus on lease-up activities. Once stabilized, we expect a 7.7% return on incremental capital invested with an estimated $17M in value created.
 
    Kitchen and Bath Program: Over 1,300 kitchen and bath renovations have been completed at an average cost of $9,604, and are yielding an average annual return of 11.9%.
Richmond has a diversified economy with significant employment in the government sector and in trade, transportation and utilities.

 

35


 

Richmond
Market Fact Sheet
(GRAHPIC)

 

36


 

Richmond
Market Fact Sheet
(GRAHPIC)

 

37


 

Richmond
Market Fact Sheet
(GRAHPIC)
                                     
            Year Built                 Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.   Occupancy     Home  
1 Dominion Olde West
    287       1978     Full     93.4 %   $ 901  
2 Dominion Creekwood
    216       1984     K/B     96.0 %     864  
3 Dominion West End
    350       1989     K/B     97.9 %     981  
4 Waterside at Ironbridge
    265       1987     K/B     94.0 %     944  
5 Carriage Homes at Wyndham
    264       1998     K/B     95.8 %     1,350  
6 Legacy at Mayland
    576       2007     Full     98.1 %     1,054  
 
                         
Subtotal
    1,958                   96.3 %     1,023  
Non-Mature
                                   
7 Gayton Pointe Townhomes
    253       2008     Full     95.7 %     1,304  
 
                         
Subtotal
    253                   95.7 %     1,304  
 
                         
Grand Total
    2,211                   96.2 %   $ 1,055  
 
                         

 

38


 

     
(UDR LOGO)
  Dallas
Market Fact Sheet
Market Statistics & Peer Comparison
         
Dallas Portfolio   Homes  
Same Store Pool
    305  
Non-Matures
    3,497  
Homes in Development
    1,648  
Held for Future Development
    5,557  
 
     
Total
    11,007  
MRQ Mo. Inc./ Home (SS)
  $ 1,647  
MRQ Occupancy (SS)
    95.5 %
                 
Company   # of Homes (SS)     Ave. Rent  
UDR
    305     $ 1,647  
PPS
    3,796       1,136  
EQR
    3,191       915  
CPT
    4,719       806  
CLP
    2,468       750  
MAA
    3,195       743  
AIV
    1,721       738  
 
           
 
    19,090     $ 866  
Dallas is UDR’s #10
market and is expected to
contribute 4.0% of the
Company’s 2008 total
pro forma NOI.
Dallas Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 830     Ave. Market Rent   $ 866     Population     4,111,429  
Occupancy (MRQ)
    92.4 %   Mo Payment: Entry Level*:           Job Growth     2.1 %
Eff. Rent Growth ‘08F
    2.0 %        Home   $ 1,094     Median Income   $ 64,800  
Eff. Rent Growth ‘09F
    1.6 %        Condo   $ 891     Housing Stock        
Eff. Rent Growth ‘10F
    1.1 %   Median Home Price (MRQ)   $ 151,000     Renter     529,053  
Multifamily Permits
    13,501     Housing Affordability Score     125          % of Total     37.3 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
The Company has been active in the Dallas market in a variety of ways:
    In the first quarter of 2008, we acquired Legacy Village (three communities) consisting of 1,043 homes in the Plano submarket.
 
    At Thirty 377, we have completed 70 kitchen and bath renovations at an average cost of $18,869 and we are realizing an average annual return of 11.8%.
 
    Construction of 202 homes at Riachi at One21 in the Dallas suburb of Plano was completed in the fourth quarter of 2007. Construction of 198 units in Phase II of the community has begun and completion is anticipated in 2009.
 
    Construction of 302 homes at Lincoln at Towne Square was completed in the third quarter of 2008 within the Company’s Texas joint-venture.
 
    An assemblage of 99 acres in Addison, named Vitruvian Park, was completed in the second quarter of 2007, and the Company broke ground on Phase I of development in the second quarter of 2008. The city of Addison has approved doubling the density to over 5,500 homes with zoning for 500,000 square feet of retail and office space. They have also agreed to contribute $40 million to the project. The Company anticipates that the development will be completed in conjunction with one or more institutional investors.
The Dallas economy is diverse with significant employment in the energy sector, trade, transportation, government, education and the health sector.

 

39


 

Dallas
Market Fact Sheet
(GRAHPIC)

 

40


 

Dallas
Market Fact Sheet
(GRAHPIC)

 

41


 

Dallas
Market Fact Sheet
(GRAHPIC)
                                     
            Year Built                 Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.   Occupancy     Home  
1 Thirty377
    305       2007     K/B     95.5 %   $ 1,647  
 
                           
Subtotal**
    305                   95.5 %     1,647  
Non-Mature and Other
                                   
2 Lincoln at Towne Square (JV)
    702       2008         81.3 %     961  
3 Meridian II, The (JV)
    520       2002         96.7 %     856  
4 Cliffs, The (JV)
    400       1992         97.1 %     796  
5 Mandolin, The (JV)
    486       2003         96.2 %     1,000  
6 Villas at Ridgeview
    48       2007         97.2 %     1,692  
7 Riachi at One21 - Phase I
    202       2007         94.4 %     983  
8 Highlands of Preston (in redevelopment)
    380       2007         81.2 %     746  
9 Legacy Village
    1,043       '05-'07         90.4 %     994  
10 Vitruvian Park
    1,013                 94.4 %     672  
 
                           
Subtotal (UDR)**
    3,497                   n/a       n/a  
 
                           
Grand Total (UDR)**
    3,802                   n/a       n/a  
 
                           
** Excludes Unconsolidated JV homes and includes 811 homes in other Texas markets
                                         
                Est.                  
        Current     #     Est, Cost     Est. Cost     Est.
Development Opportunities   Status   # Homes     Homes     ($000)     per Home     Completion
7 Riachi at One21 - Phase II
  Active             200     $ 17,900     $ 89,500     2009
10 Vitruvian Park^ — Phase I
  Active             392       66,500       170,000 ^^   2010
10 Vitruvian Park^ — Future Phases
  Future     1,013       5,557     $ 737,000       132,600     TBD
11 Mustang Park (Presale)
  Active             289       29,000       100,000     2009
12 Belmont (formerly Bennett)
  Active             465       63,000     $ 135,000     2010
 
                                   
Total
                6,903     $ 913,400              
 
                                   
     
^   Our development of Vitruvian Park will be completed in phases. We are currently developing 392 homes in Phase I. Vitruvian Park consists of an assemblage of operating properties, including 1,013 homes with a net carrying value of $52.5M, delivering annualized NOI of $3.7M. Future phases will move into active development as financing opportunities and market conditions improve.
 
^^   Includes 16,050 square feet of retail space.

 

42


 

     
(UDR LOGO)
  Nashville
Market Fact Sheet
Market Statistics & Peer Comparison
         
Nashville Portfolio   Homes  
Same Store Pool
    1,874  
Non-Matures
    386  
Homes in Development
     
Held for Future Development
     
 
     
Total
    2,260  
MRQ Mo. Inc./ Home (SS)
  $ 891  
MRQ Occupancy (SS)
    95.5 %
                 
Company   # of Homes (SS)     Ave. Rent  
EQR
    396     $ 914  
UDR
    1,874       891  
AIV
    2,192       856  
MAA
    1,855       816  
 
           
 
    6,317     $ 858  
Nashville is UDR’s #11
market and is expected to
contribute 3.5% of the
Company’s 2008 total
pro forma NOI.
Nashville Market Statistics
                                 
2008 Forcast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 784     Ave. Market Rent   $ 858     Population     1,521,437  
Occupancy (MRQ)
    92.8 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     0.1 %
Eff. Rent Growth ‘08F
    0.7 %        Home   $ 1,072     Median Income   $ 63,200  
Eff. Rent Growth ‘09F
    0.1 %        Condo   $ 872     Housing Stock        
Eff. Rent Growth ‘10F
    1.3 %   Median Home Price (MRQ)   $ 163,100     Renter     177,467  
Multifamily Permits
    1,605     Housing Affordability Score     n/a          % of Total     30.3 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
UDR has demonstrated success in creating additional value from its Nashville properties in a variety of ways:
    Redevelopment — we have completed the full redevelopment of Polo Park, a 386-home community we purchased for $20.9M or $54,082 per home in 2006. It is expected to deliver a cash-on-cash return of 7.9%, and an increase in total cash flow of 48% for total value creation of $4 million.
 
    Kitchens/Baths — In addition to the redevelopment program, we have completed over 800 kitchen and bath renovations at an average cost of $12,113 and are yielding an average annual return of 10.3%.
Nashville has a diversified economy with significant employment in trade, transportation and utilities and education and health activity.

 

43


 

Nashville
Market Fact Sheet
(GRAPHIC)

 

44


 

Nashville
Market Fact Sheet
(GRAPHIC)

 

45


 

Nashville
Market Fact Sheet
(GRAPHIC)
                                     
            Year Built                 Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.   Occupancy     Home  
1 Legacy Hill
    206       1977     K/B     95.2 %   $ 870  
2 Brookridge
    176       1986     K/B     93.6 %     729  
3 Breckenridge
    190       1986     K/B     95.6 %     773  
4 Hickory Run
    294       1989     K/B     95.8 %     802  
5 The Colonnade
    288       1998     K/B     95.4 %     852  
6 The Preserve at Brentwood
    360       1998     K/B     95.6 %     1,006  
7 Carrington Hills
    360       1999     K/B     96.5 %     1,031  
 
                           
Subtotal
    1,874                   95.5 %     891  
Non-Mature
                                   
8 Polo Park
    386       1987     Full     95.6 %     817  
 
                           
Subtotal
    386                   95.6 %     817  
 
                           
Grand Total
    2,260                   95.5 %   $ 878  
 
                           

 

46


 

     
(UDR LOGO)
  San Diego County
Market Fact Sheet
Market Statistics & Peer Comparison
         
San Diego Portfolio   Homes  
Same Store Pool
    1,123  
Non-Matures
     
Homes in Development
     
Held for Future Development
    569  
 
     
Total
    1,692  
MRQ Mo. Inc./ Home (SS)
  $ 1,406  
MRQ Occupancy (SS)
    95.5 %
                 
Company   # of Homes (SS)     Ave. Rent  
CPT
    879     $ 1,803  
EQR
    4,000       1,628  
BRE
    3,711       1,593  
AVB
    1,057       1,456  
UDR
    1,123       1,406  
AIV
    1,830       1,406  
ESS
    3,284       1,187  
 
           
 
    15,884     $ 1,486  
San Diego is UDR’s #12
market and is expected to
contribute 3.1% of the
Company’s 2008 total
pro forma NOI.
San Diego Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 1,453     Ave. Market Rent   $ 1,486     Population     2,974,859  
Occupancy (MRQ)
    94.6 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     -0.4 %
Eff. Rent Growth ‘08F
    2.7 %        Home   $ 2,386     Median Income   $ 72,100  
Eff. Rent Growth ‘09F
    0.7 %        Condo   $ 1,998     Housing Stock        
Eff. Rent Growth ‘10F
    2.0 %   Median Home Price (MRQ)   $ 415,000     Renter     461,022  
Multifamily Permits
    3,349     Housing Affordability Score     51          % of Total     44.1 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
UDR has the opportunity to expand its presence in this market with two development projects. Future plans are to add 65 new apartment homes to Presidio at Rancho del Oro, in Oceanside and to tear down and rebuild The Summit at Mission Bay, making it multiple levels with subterranean parking. This will increase the size of the property by 181 apartment homes and offer ocean views. Both of these development projects are held for future development, subject to financing opportunities and market conditions.
The company continues to improve its existing homes through the Kitchen and Bath Program:
    230 kitchen and bath renovations have been completed at an average cost of $6,000 to $7,000 with an annualized average return of 21.6%. The average increase in market rent is $150.00.
The local housing market has softened and home ownership is less attainable. While San Diego County experienced a loss of jobs in 2007 and 2008 due to fall out of the sub prime market, as well as loss of construction starts, it continues to be an attractive place to live with its diverse population, highly skilled and educated workforce, as well as several military bases. In addition the climate is very mild year round and provides multiple options for outdoor activities and tourism.

 

47


 

San Diego
Market Fact Sheet
(GRAPHIC)

 

48


 

San Diego
Market Fact Sheet
(GRAPHIC)

 

49


 

San Diego
Market Fact Sheet
(GRAPHIC)
                                     
            Year Built                 Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.   Occupancy     Home  
1 Presidio at Rancho del Oro
    264       1987     K/B     94.4 %   $ 1,273  
2 Villas at Carlsbad
    102       1966     K/B     94.9 %     1,569  
3 Summit at Mission Bay
    323       1953         97.4 %     1,296  
4 Rancho Vallecitos
    184       1988     K/B     94.9 %     1,528  
5 Milazzo
    250       1986     K/B     95.1 %     1,534  
 
                           
Grand Total
    1,123                   95.5 %   $ 1,406  
                                     
        Current #   Est. #     Est. Cost     Est. Cost     Est.
Development Opportunities   Status   Homes   Homes     ($000s)     per Home     Completion
1 Presidio — Phase II^
  Future   (land)     65     $ 9,000     $ 138,500     TBD^
3 Summit at Mission Bay^
  Future   323     504       172,000     $ 341,300     TBD^
 
                             
Total
            569     $ 181,000              
 
                             
     
^   These properties will move into active development as financing opportunities and market conditions improve.

 

50


 

     
(UDR LOGO)
  Monterey/Salinas
Market Fact Sheet
Market Statistics & Peer Comparison
         
Monterey Portfolio   Homes  
Same Store Pool
    1,565  
Non-Matures
     
Homes in Development
     
Held for Future Development
       
 
     
Total
    1,565  
MRQ Mo. Inc./ Home (SS)
  $ 1,094  
MRQ Occupancy (SS)
    96.7 %
                 
Company   # of Homes (SS)     Ave. Rent  
UDR
    1,565     $ 1,094  
 
           
 
    1,565     $ 1,094  
Monterey is UDR’s #13
market and is expected to
contribute 3.1% of the
Company’s 2008 total
pro forma NOI.
Monterey Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 1,175     Ave. Market Rent   $ 1,094     Population     407,637  
Occupancy (MRQ)
    95.5 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     1.1 %
Eff. Rent Growth ‘08F
    6.2 %        Home   $ 2,026     Median Income   $ 64,800  
Eff. Rent Growth ‘09F
    2.0 %        Condo   $ 1,690     Housing Stock        
Eff. Rent Growth ‘10F
    2.3 %   Median Home Price (MRQ)   $ 350,000     Renter     61,203  
Multifamily Permits
    240     Housing Affordability Score     43          % of Total     48.6 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
UDR’s Monterey portfolio consists of 1,565 apartment homes in seven communities in Salinas, CA. Average monthly rents are $1,094.
The Salinas economy is heavily influenced by the agricultural industry and is known as “America’s Salad Bowl”. The market has heavy population fluctuations related to the seasonality of the farming industry with highs in the March-November months. UDR’s occupancy tends to fluctuate between 91% in the low season and as high as 98% in the high season.

 

51


 

     
(UDR LOGO)
  Monterey/Salinas
Market Fact Sheet
(GRAPHIC)
                                     
            Year Built                 Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.   Occupancy     Home  
1 Garden Court
    107       1986         99.6 %   $ 974  
2 Cambridge Court
    332       1974     K/B     97.5 %     1,014  
3 The Pointe at Westlake
    139       1979     K/B     96.9 %     1,004  
4 Laurel Tree
    157       1979     K/B     95.6 %     986  
5 Boranda Manor
    204       1977     K/B     98.0 %     1,064  
6 The Pointe at Northridge
    187       1975     K/B     95.5 %     1,157  
7 The Pointe at Harden Ranch
    439       1973     K/B     95.5 %     1,243  
 
                           
Grand Total
    1,565                   96.7 %   $ 1,094  
 
                           
(GRAPHIC)

 

52


 

     
(UDR LOGO)
  Jacksonville
Market Fact Sheet
Market Statistics & Peer Comparison
         
Jacksonville Portfolio   Homes  
Same Store Pool
    1,557  
Non-Matures
    300  
Homes in Development
     
Held for Future Development
     
 
     
Total
    1,857  
MRQ Mo. Inc./ Home (SS)
  $ 862  
MRQ Occupancy (SS)
    94.7 %
                 
Company   # of Homes (SS)     Ave. Rent  
UDR
    1,557     $ 862  
AIV
    1,919       831  
EQR
    3,474       791  
MAA
    3,346       781  
 
           
 
    10,296     $ 806  
Jacksonville is UDR’s #14
market and is expected to
contribute 2.9 % of the
Company’s 2008 total
pro forma NOI.
Jacksonville Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 803     Ave. Market Rent   $ 806     Population     1,300,823  
Occupancy (MRQ)
    90.2 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     -0.9 %
Eff. Rent Growth ‘08F
    -2.8 %        Home   $ 1,232     Median Income   $ 63,900  
Eff. Rent Growth ‘09F
    0.0 %        Condo   $ 1,009     Housing Stock        
Eff. Rent Growth ‘10F
    0.2 %   Median Home Price (MRQ)   $ 186,800     Renter     157,002  
Multifamily Permits
    2,169     Housing Affordability Score     108          % of Total     31.0 %
Source: AXIOMetrics, Merrill Lynch Apartment Monitor and Company Reports(MRQ)
* Assumes 30 yr fixed at 6.31%
Recent Activity
UDR has demonstrated success in creating additional value from its Jacksonville properties in a variety of ways.
    In 2007, we acquired The Kensley Apartment Homes, a 300-homes community, for $34.2M, or $114,000 per home.
 
    We have completed 455 kitchen and bath renovations at an average cost of $10,200 and are realizing an average return of 9%
 
    We have also completed a limited scope reposition of 352 homes at Green Tree Place.
AXIOMetrics most recent report shows Jacksonville’s population grew at +1.7% in 2007, above the national average. Jacksonville’s household income is slightly above the US average. Annual job growth is expected to decline slightly, feeling the pressure of the weakened national business climate. Most new jobs are coming from professional, business services, education, health services as well as leisure and hospitality industries.

 

53


 

     
(UDR LOGO)
  Jacksonville
Market Fact Sheet
(GRAPHIC)
                                     
            Year Built                 Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.   Occupancy     Home  
1 The Antlers
    400       1985         96.3 %   $ 839  
2 Green Tree Place
    352       1986     K/B     95.4 %     859  
3 St John’s Plantation
    400       1989     K/B     93.4 %     931  
4 Westland Park
    405       1990     K/B     93.7 %     819  
 
                           
Subtotal
    1,557                   94.7 %     862  
Non-Mature
                                   
5 The Kensley Apartment Homes
    300       2004         89.9 %     906  
 
                           
Subtotal
    300                   89.9 %     906  
 
                           
Grand Total
    1,857                   93.9 %   $ 869  
 
                           
(GRAPHIC)

 

54


 

     
(UDR LOGO)
  Norfolk/VA Beach
Market Fact Sheet
Market Statistics & Peer Comparison
         
Norfolk/VA Beach Portfolio   Homes  
Same Store Pool
    1,438  
Non-Matures
     
Homes in Development
     
Held for Future Development
     
 
     
Total
    1,438  
MRQ Mo. Inc./ Home (SS)
  $ 960  
         
MRQ Occupancy (SS)
    94.5 %
                 
Company   # of Homes (SS)     Ave. Rent  
AEC
    268     $ 1,363  
AIV
    2,721     $ 976  
UDR
    1,438       960  
CLP
    497       795  
 
           
 
    4,924     $ 974  
Norfolk is UDR’s #15
market and is expected to
contribute 2.8 % of the
Company’s 2008 total
pro forma NOI.
Norfolk/VA Beach Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 952     Ave. Market Rent   $ 974     Population     1,658,754  
Occupancy (MRQ)
    93.8 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     2.1 %
Eff. Rent Growth ‘08F
    1.6 %        Home   $ 1,541     Median Income   $ 65,100  
Eff. Rent Growth ‘09F
    0.9 %        Condo   $ 1,274     Housing Stock        
Eff. Rent Growth ‘10F
    1.7 %   Median Home Price (MRQ)   $ 239,700     Renter     217,725  
Multifamily Permits
    2,004     Housing Affordability Score     91          % of Total     34.9 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
Norfolk/Virginia Beach apartment communities are in solid locations and the Company has invested to modernize the homes in the following way:
    Kitchen and Bath Program: Over 1,400 kitchen and bath renovations have been completed at an average cost of $9,760, yielding an average annual return of 8.0%.
Virginia Beach has a diversified economy with significant employment in the government sector and in trade, transportation and utilities.

 

55


 

     
(UDR LOGO)
  Norfolk/VA Beach
Market Fact Sheet
(GRAPHIC)
                                     
            Year Built                 Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.   Occupancy     Home  
1 Dominion Waterside/Lynnhaven
    192       1966     K/B     93.9 %   $ 1,003  
2 Eastwind
    200       1970     K/B     93.8 %     1,079  
3 Heather Lake
    252       1972     K/B     92.6 %     957  
4 Woodscape
    296       1974         94.4 %     809  
5 Forest Lakes at Oyster Pt.
    296       1986     K/B     95.4 %     958  
6 Dominion Yorkshire Downs
    202       1987     K/B     96.6 %     1,024  
 
                           
Grand Total
    1,438                   94.5 %   $ 960  
 
                           
(GRAPHIC)

 

56


 

     
(UDR LOGO)
  Inland Empire, CA
Market Fact Sheet
Market Statistics & Peer Comparison
         
Inland Empire Portfolio   Homes  
Same Store Pool
    1,074  
Non-Matures
     
Homes in Development
     
Held for Future Development
     
 
     
Total
    1,074  
MRQ Mo. Inc./ Home (SS)
  $ 1,317  
MRQ Occupancy (SS)
    93.8 %
                 
Company   # of Homes (SS)     Ave. Rent  
UDR
    1,074     $ 1,317  
CPT
    264       1,298  
EQR
    4,350       1,246  
BRE
    2,929       1,188  
ESS
    588       942  
AIV
    198       925  
AVB
    320       850  
 
           
 
    9,723     $ 1,200  
Inland Empire is UDR’s
#16 market and is
expected to contribute
2.8 % of the Company’s
2008 total pro forma NOI.
Inland Empire Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 1,167     Ave. Market Rent   $ 1,200     Population     4,081,371  
Occupancy (MRQ)
    91.8 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     -1.7 %
Eff. Rent Growth ‘08F
    -3.1 %        Home   $ 1,606     Median Income   $ 62,000  
Eff. Rent Growth ‘09F
    -1.0 %        Condo   $ 1,330     Housing Stock        
Eff. Rent Growth ‘10F
    1.7 %   Median Home Price (MRQ)   $ 260,000     Renter     403,123  
Multifamily Permits
    2,789     Housing Affordability Score     77          % of Total     32.4 %
Source: AXIOMetrics, Merrill Lynch Apartment Monitor and Company Reports(MRQ)
* Assumes 30 yr fixed at 6.31%
Recent Activity
In the Inland Empire market, UDR is improving existing homes though its Kitchen and Bath Program. Approximately 200 kitchen and bath renovations have been completed at an average cost of $8,802 and we are realizing an average annual return of 13.5%. We achieved average rent increases of 13.5% per home at Waterstone at Murrieta: $975 before and $1,075 after.
San Bernardino County is known as the “transportation hub of the Southwestern United States,” according to Grubb & Ellis. With Ontario International Airport, the County hosts one of the 15 busiest cargo airports in the country. Freight trains roll through the region on two of the busiest transcontinental rail lines in the nation. This region offers a diversified economy, cultural amenities, and an attractive quality of life for individuals and families, as well as businesses, seeking to relocate. A safe, family-oriented environment and a well-educated work force combine to make the Inland Empire an ideal place to live, work and play.

 

57


 

     
(UDR LOGO)
  Inland Empire, CA
Market Fact Sheet
(GRAPHIC)
                                     
            Year Built                 Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.   Occupancy     Home  
1 Waterstone at Murietta
    420       1990     K/B     93.3 %     1,112  
2 Windemere/Sycamore Heights
    240       2001         92.4 %     1,244  
3 Verano at Town Square
    414       2006         95.1 %     1,562  
 
                           
Grand Total
    1,074                   93.8 %   $ 1,317  
 
                           
(GRAPHIC)

 

58


 

     
(UDR LOGO)
  Phoenix
Market Fact Sheet
Market Statistics & Peer Comparison
         
Phoenix Portfolio   Homes  
Same Store Pool
    914  
Non-Matures
    449  
Homes in Development
    382  
Held for Future Development
     
 
     
Total
    1,745  
MRQ Mo. Inc./ Home (SS)
  $ 946  
MRQ Occupancy (SS)
    93.3 %
                 
Company   # of Homes (SS)     Ave. Rent  
UDR
    914     $ 946  
CLP
    952       906  
BRE
    1,898       900  
CPT
    1,729       869  
MAA
    240       797  
EQR
    11,066       790  
AIV
    5,012       718  
 
           
 
    21,811     $ 801  
Phoenix is UDR’s #17
market and is expected to
contribute 2.1 % of the
Company’s 2008 total
pro forma NOI.
Phoenix Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 774     Ave. Market Rent   $ 801     Population     4,179,427  
Occupancy (MRQ)
    89.5 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     -2.0 %
Eff. Rent Growth ‘08F
    -3.9 %        Home   $ 1,283     Median Income   $ 64,200  
Eff. Rent Growth ‘09F
    -1.9 %        Condo   $ 1,053     Housing Stock        
Eff. Rent Growth ‘10F
    0.2 %   Median Home Price (MRQ)   $ 205,100     Renter     456,220  
Multifamily Permits
    6,788     Housing Affordability Score     109          % of Total     31.5 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
UDR is expanding its presence in this market with the following:
    In the third quarter of 2008, the Company purchased Waterford at Peoria — a 200-home presale development community completed in the third quarter.
 
    The Residences at Stadium Village is an active development project — with 382 homes being built at an estimated average cost of $124,000 per home, with an expected completion in 2010.
The local economy has recently softened; however job growth is forecasted to improve in 2010. Key local industries include trade, transportation and utilities, professional and business, education and health, leisure and hospitality and government. The market has outstanding recreational and extra-curricular activities, an attractive year round climate, a reasonable cost of living and a young educated work force. Phoenix offers ample room for continued job growth and population growth.

 

59


 

     
(UDR LOGO)
  Phoenix
Market Fact Sheet
(GRAPHIC)
                                     
            Year Built                 Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.   Occupancy     Home  
1 Finisterra
    356       1997         92.7 %   $ 960  
2 Sierra Foothills
    322       1998         93.3 %     953  
3 Sierra Canyon
    236       2001         94.2 %     915  
 
                           
Sub Total
    914                   93.3 %     946  
Non-Mature
                                   
4 Sierra Palms (Held for Disposition)
    249       1997           82.5 %     852  
5 Waterford Peoria (In lease-up)
    200       2008           39.0 %     869  
 
                           
Sub Total
    449                   63.1 %     857  
 
                           
Grand Total
    1,363                   83.4 %   $ 924  
                                     
        # of     Budgeted     Cost per     Expected  
Development Opportunities   Status   Homes     Cost (000)     Home     Completion  
6 Residences/Stadium
  Active     382     $ 47,400     $ 124,000       2010  
 
                               
 
        382     $ 47,400                  
 
                               
(GRAPHIC)

 

60


 

     
(UDR LOGO)
  Sacramento
Market Fact Sheet
Market Statistics & Peer Comparison
         
Sacramento Portfolio   Homes  
Same Store Pool
    914  
Non-Matures
     
Homes in Development
     
Held for Future Development
     
 
     
Total
    914  
MRQ Mo. Inc./ Home (SS)
  $ 930  
MRQ Occupancy (SS)
    93.9 %
                 
Company   # of Homes (SS)     Ave. Rent  
BRE
    1,242     $ 1,155  
EQR
    504       1,076  
AIV
    180       1,050  
UDR
    914       930  
 
           
 
    2,840     $ 1,062  
Sacramento is UDR’s #18
market and is expected to
contribute 1.6 % of the
Company’s 2008 total
pro forma NOI.
Sacramento Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 1,028     Ave. Market Rent   $ 1,062     Population     2,091,120  
Occupancy (MRQ)
    92.8 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     -1.1 %
Eff. Rent Growth ‘08F
    0.8 %        Home   $ 1,523     Median Income   $ 71,000  
Eff. Rent Growth ‘09F
    -0.8 %        Condo   $ 1,259     Housing Stock        
Eff. Rent Growth ‘10F
    1.5 %   Median Home Price (MRQ)   $ 250,000     Renter     282,068  
Multifamily Permits
    1,225     Housing Affordability Score     96          % of Total     36.8 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD) * Assumes 30 yr fixed at 6.3%
Recent Activity
The Company owns two properties comprised of 914 apartment homes in Sacramento. UDR’s Sacramento properties have average rents of $930. Sacramento is the state capitol of California and also is home to Sacramento State University.
AXIOMetrics forecasts a soft job market through 2009, but improving in 2010 and beyond.
The Company has no plans to expand further in this market

 

61


 

     
(UDR LOGO)
  Sacramento
Market Fact Sheet
(GRAPHIC)
                                         
            Year Built                     Inc. per  
Operating Properties   # Homes     ReDev     Redev.     Occupancy     Occ. Home  
1 Woodlake Village
    646       1979       K/B       93.4 %   $ 871  
2 Foothills Tennis Village
    268       1988       K/B       95.0 %     1,068  
 
                             
Grand Total
    914                       93.9 %   $ 930  
 
                             
(GRAPHIC)

 

62


 

     
(UDR LOGO)
  Portland
Market Fact Sheet
Market Statistics & Peer Comparison
         
Portland Portfolio   Homes  
Same Store Pool
    716  
Non-Matures
     
Homes in Development
     
Held for Future Development
     
 
     
Total
    716  
MRQ Mo. Inc./ Home (SS)
  $ 1,002  
MRQ Occupancy (SS)
    95.3 %
                 
Company   # of Homes (SS)     Ave. Rent  
UDR
    716     $ 1,002  
EQR
    3,713       892  
 
           
 
    4,429     $ 909  
Portland is UDR’s #19
market and is expected to
contribute 1.4 % of the
Company’s 2008 total
pro forma NOI.
Portland Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 869     Ave. Market Rent   $ 909     Population     2,175,113  
Occupancy (MRQ)
    94.5 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     0.2 %
Eff. Rent Growth ‘08F
    0.8 %        Home   $ 1,776     Median Income   $ 67,500  
Eff. Rent Growth ‘09F
    1.0 %        Condo   $ 1,476     Housing Stock        
Eff. Rent Growth ‘10F
    1.4 %   Median Home Price (MRQ)   $ 286,100     Renter     290,704  
Multifamily Permits
    4,022     Housing Affordability Score     77          % of Total     34.9 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
UDR owns 716 apartment homes in three communities in the Portland market. The Company sold two of its Portland properties in the March portfolio sale. Rents average $1,002 at UDR’s Portland properties with three bedroom homes renting for as much as $2,200. The Portland economy is fueled in large part by the technology industry and is home to Nike in the Portland suburb of Beaverton.

 

63


 

     
(UDR LOGO)
  Portland
Market Fact Sheet
(GRAPHIC)
                                         
            Year Built                     Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.     Occupancy     Home  
1 Hunt Club
    256       1985       K/B       95.5 %   $ 935  
2 Tualatin Heights
    220       1989       K/B       95.5 %     1,023  
3 Andover Park
    240       1989       K/B       94.8 %     1,054  
 
                             
Grand Total
    716                       95.3 %   $ 1,002  
 
                             
(GRAPHIC)

 

64


 

     
(UDR LOGO)
  Austin
Market Fact Sheet
Market Statistics & Peer Comparison
         
Austin Portfolio   Homes  
Same Store Pool
    250  
Non-Matures
    390  
Homes in Development
     
Held for Future Development
     
 
     
Total
    640  
MRQ Mo. Inc./ Home (SS)
  $ 978  
MRQ Occupancy (SS)
    98.0 %
                 
Company   # of Homes     Ave. Rent  
PPS
    308     $ 1,371  
CPT
    1,898       985  
UDR
    250       978  
CLP
    1,910       839  
MAA
    1,776       803  
AIV
    1,499       756  
 
           
 
    7,641     $ 877  
Austin is UDR’s #20
market and is expected to
contribute 1.4 % of the
Company’s 2008 total
pro forma NOI.
Austin Market Statistics
                                 
2008 Forecast     Low Home Affordability     Economy  
Effective Rent (MRQ)
  $ 864     Ave. Market Rent   $ 877     Population     1,598,161  
Occupancy (MRQ)
    93.1 %   Mo Payment: Entry Level*:           Job Growth (MRQ)     2.2 %
Eff. Rent Growth ‘08F
    1.7 %        Home   $ 1,331     Median Income   $ 69,100  
Eff. Rent Growth ‘09F
    2.5 %        Condo   $ 1,094     Housing Stock        
Eff. Rent Growth ‘10F
    1.3 %   Median Home Price (MRQ)   $ 194,200     Renter     234,574  
Multifamily Permits
    5,620     Housing Affordability Score     102          % of Total     40.2 %
Sources: AXIOMetrics and Company Reports, Most Recent Quarter (MRQ), Merrill Lynch Apartment Monitor, Latest Available Data (LAD)
* Assumes 30 yr fixed at 6.3%
Recent Activity
In the third quarter of 2008, UDR purchased Residences at The Domain, a 390-home community built in 2007. This property is located in Domain Urban Village, an attractive mixed-use development with 700,000 square feet of retail and 75,000 square feet of office space. It is located in close proximity to proposed rail lines, including Capital MetroRail and Union Pacific Rail Line and to Central Austin and Northwest Austin job centers.

 

65


 

     
(UDR LOGO)
  Austin
Market Fact Sheet
(GRAPHIC)
                                     
            Year Built                 Inc. per Occ.  
Operating Properties   # Homes     ReDev     Redev.   Occupancy     Home  
1 Barton Creek Landing
    250       1986     K/B     98.0 %   $ 978  
 
                           
Subtotal
    250                   98.0 %     978  
Non-Mature and Other
                                   
2 Red Stone Ranch (Texas JV)
    324       2001         95.9 %     845  
3 Lakeline Villas (Texas JV)
    309       2002         97.5 %     813  
4 Residences at The Domain
    390       2007           91.0 %     1,253  
 
                           
Subtotal**
    390                   91.0 %     1,253  
 
                           
Grand Total (UDR)**
    640                   93.7 %   $ 1,141  
 
                           
**JV homes not included.
(GRAPHIC)

 

66


 

Transformation for Growth: UDR’s Strategies
     
(GRAPHIC)  
Strong portfolio, focused in markets with above average job growth expectations and low affordability

Excellent growth profile
   
 
(GRAPHIC)  
Development pipeline geographically aligned with operating portfolio

Pursuing entitlement and short-term hold opportunities
   
 
(GRAPHIC)  
Focused operating model

Improved efficiency and effectiveness

Continued execution of technology initiatives
   
 
(GRAPHIC)  
Recycle capital into high growth markets

Strengthen balance sheet with debt reduction
Safe Harbor: Statements contained in this document, which are not historical facts, are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the Company’s use of words such as, “expects,” “plans,” “estimates,” “projects,” “intends,” “believes,” and similar expressions that do not relate to historical matters. Such forward-looking statements are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated, due to a number of factors, which include, but are not limited to, unfavorable changes in the apartment market, changing economic conditions, the impact of competition and competitive pricing, acquisitions or new developments not achieving anticipated results, delays in completing developments and lease-ups on schedule, expectations on job growth, home affordability and demand/supply ratio for multi-family housing, expectations concerning development and redevelopment activities, expectations on occupancy levels, expectations concerning the Vitruvian Park project, including expectations that the Company will be able to secure one or more institutional investor-partners, expectations that automation will help grow net operating income, expectations on post-renovated stabilized annual operating income, expectations on annualized net operating income and other risk factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time including the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q. All forward-looking statements in this document are made as of August 6, 2008, based upon information known to management as of the date hereof. The Company assumes no obligation to update or revise any of its forward-looking statements even if experience or future changes show that indicated results or events will not be realized.

 

BROKERAGE PARTNERS