Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 28, 2019 | |
Entity information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 1-10524 | |
Entity Registrant Name | UDR, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 54-0857512 | |
Entity Address, Address Line One | 1745 Shea Center Drive, Suite 200 | |
Entity Address, City or Town | Highlands Ranch | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80129 | |
City Area Code | 720 | |
Local Phone Number | 283-6120 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | UDR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 293,053,423 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000074208 | |
Amendment Flag | false | |
United Dominion Realty L.P. | ||
Entity information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 333-156002-01 | |
Entity Registrant Name | United Dominion Realty, L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 54-1776887 | |
Entity Address, Address Line One | 1745 Shea Center Drive, Suite 200 | |
Entity Address, City or Town | Highlands Ranch | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80129 | |
City Area Code | 720 | |
Local Phone Number | 283-6120 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001018254 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Real estate owned: | ||
Real estate held for investment | $ 11,542,550 | $ 10,196,159 |
Less: accumulated depreciation | (4,000,608) | (3,654,160) |
Real estate held for investment, net | 7,541,942 | 6,541,999 |
Real estate under development (net of accumulated depreciation of $0 and $0, respectively) | 21,845 | |
Total real estate owned, net of accumulated depreciation | 7,563,787 | 6,541,999 |
Cash and cash equivalents | 1,895 | 185,216 |
Restricted cash | 21,646 | 23,675 |
Notes receivable, net | 37,899 | 42,259 |
Investment in and advances to unconsolidated joint ventures, net | 791,180 | 780,869 |
Operating lease right-of-use assets | 135,889 | |
Other assets | 145,301 | 137,710 |
Total assets | 8,697,597 | 7,711,728 |
Liabilities: | ||
Secured debt, net | 600,624 | 601,227 |
Unsecured debt, net | 3,335,273 | 2,946,560 |
Operating lease liabilities | 130,135 | |
Real estate taxes payable | 42,031 | 20,608 |
Accrued interest payable | 27,577 | 38,747 |
Security deposits and prepaid rent | 36,382 | 35,060 |
Distributions payable | 108,939 | 97,666 |
Accounts payable, accrued expenses, and other liabilities | 72,680 | 76,343 |
Total liabilities | 4,353,641 | 3,816,211 |
Commitments and contingencies (Note 13) | ||
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | 1,072,181 | 972,740 |
Equity: | ||
Common stock, $0.01 par value; 350,000,000 shares authorized: 292,948,423 and 275,545,900 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 2,929 | 2,755 |
Additional paid-in capital | 5,702,782 | 4,920,732 |
Distributions in excess of net income | (2,496,328) | (2,063,996) |
Accumulated other comprehensive income/(loss), net | (9,022) | (67) |
Total stockholders' equity | 3,246,562 | 2,905,625 |
Noncontrolling interests | 25,213 | 17,152 |
Total equity | 3,271,775 | 2,922,777 |
Total liabilities and equity | 8,697,597 | 7,711,728 |
8.00% Series E Cumulative Convertible Preferred Stock | ||
Equity: | ||
Preferred stock, no par value; 50,000,000 shares authorized: | 46,200 | 46,200 |
Series F | ||
Equity: | ||
Preferred stock, no par value; 50,000,000 shares authorized: | $ 1 | $ 1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Real estate owned: | ||
Real estate under development accumulated depreciation | $ 0 | $ 0 |
Equity: | ||
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 292,948,423 | 275,545,900 |
Common stock, shares outstanding | 292,948,423 | 275,545,900 |
8.00% Series E Cumulative Convertible Preferred Stock | ||
Equity: | ||
Preferred stock, dividend rate percentage | 8.00% | 8.00% |
Preferred stock, shares issued | 2,780,994 | 2,780,994 |
Preferred stock, shares outstanding | 2,780,994 | 2,780,994 |
Series F | ||
Equity: | ||
Preferred stock, shares issued | 14,986,275 | 15,802,393 |
Preferred stock, shares outstanding | 14,986,275 | 15,802,393 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUES: | ||||
Rental income | $ 289,008 | $ 263,256 | $ 835,393 | $ 770,373 |
Joint venture management and other fees | $ 6,386 | $ 2,888 | $ 11,982 | $ 8,819 |
Type of revenue | udr:ManagementAndOtherFeesMember | udr:ManagementAndOtherFeesMember | udr:ManagementAndOtherFeesMember | udr:ManagementAndOtherFeesMember |
Total revenues | $ 295,394 | $ 266,144 | $ 847,375 | $ 779,192 |
OPERATING EXPENSES: | ||||
Property operating and maintenance | 46,869 | 44,090 | 131,702 | 126,129 |
Real estate taxes and insurance | 38,490 | 34,352 | 110,624 | 99,541 |
Property management | 8,309 | 7,240 | 24,018 | 21,185 |
Other operating expenses | 2,751 | 3,314 | 11,132 | 8,148 |
Real estate depreciation and amortization | 127,391 | 107,881 | 357,793 | 322,537 |
General and administrative | 12,197 | 11,896 | 37,002 | 36,028 |
Casualty-related charges/(recoveries), net | (1,088) | 678 | (842) | 2,364 |
Other depreciation and amortization | 1,619 | 1,682 | 4,953 | 5,057 |
Total operating expenses | 236,538 | 211,133 | 676,382 | 620,989 |
Gain/(loss) on sale of real estate owned | 5,282 | 70,300 | ||
Operating income | 58,856 | 55,011 | 176,275 | 228,503 |
Income/(loss) from unconsolidated entities | 12,713 | (1,382) | 19,387 | (5,091) |
Interest expense | (42,523) | (34,401) | (110,482) | (95,942) |
Interest income and other income/(expense), net | 1,875 | 1,188 | 12,998 | 5,075 |
Income/(loss) before income taxes | 30,921 | 20,416 | 98,178 | 132,545 |
Tax (provision)/benefit, net | (1,499) | (158) | (3,836) | (618) |
Net income/(loss) | 29,422 | 20,258 | 94,342 | 131,927 |
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | (2,162) | (1,616) | (6,871) | (10,819) |
Net (income)/loss attributable to noncontrolling interests | (56) | (32) | (145) | (141) |
Net income/(loss) attributable to UDR, Inc. | 27,204 | 18,610 | 87,326 | 120,967 |
Distributions to preferred stockholders - Series E (Convertible) | (1,031) | (971) | (3,073) | (2,897) |
Net income/(loss) attributable to common stockholders | $ 26,173 | $ 17,639 | $ 84,253 | $ 118,070 |
Income/(loss) per weighted average common share - basic | $ 0.09 | $ 0.07 | $ 0.30 | $ 0.44 |
Income/(loss) per weighted average common share - diluted | $ 0.09 | $ 0.07 | $ 0.30 | $ 0.44 |
Weighted average number of common shares outstanding - Basic | 288,706 | 267,727 | 282,598 | 267,529 |
Weighted average number of common shares outstanding - diluted | 289,529 | 268,861 | 283,292 | 269,020 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | ||||
Net income/(loss) | $ 29,422 | $ 20,258 | $ 94,342 | $ 131,927 |
Other comprehensive income/(loss), including portion attributable to noncontrolling interests: | ||||
Unrealized holding gain/(loss) | (659) | 2,320 | (7,181) | 4,312 |
(Gain)/loss reclassified into earnings from other comprehensive income/(loss) | (624) | (564) | (2,504) | (1,162) |
Other comprehensive income/(loss), including portion attributable to noncontrolling interests | (1,283) | 1,756 | (9,685) | 3,150 |
Comprehensive income/(loss) | 28,139 | 22,014 | 84,657 | 135,077 |
Comprehensive (income)/loss attributable to noncontrolling interests | (2,119) | (1,798) | (6,286) | (11,230) |
Comprehensive income/(loss) attributable to UDR, Inc. | $ 26,020 | $ 20,216 | $ 78,371 | $ 123,847 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Preferred Stock | Common Stock | Paid-in Capital | Distributions in Excess of Net Income | Accumulated Other Comprehensive Income/(Loss), net | Noncontrolling Interests | Total |
Beginning Balance at Dec. 31, 2017 | $ 46,201 | $ 2,678 | $ 4,651,205 | $ (1,871,603) | $ (2,681) | $ 9,564 | $ 2,835,364 |
Consolidated Statements of Changes in Equity | |||||||
Net income/(loss) attributable to UDR, Inc. | 120,967 | 120,967 | |||||
Net income/(loss) attributable to noncontrolling interests | 107 | 107 | |||||
Contribution of noncontrolling interests in consolidated real estate | 108 | 108 | |||||
Repurchase of common shares | (6) | (19,982) | (19,988) | ||||
Long Term Incentive Plan Unit grants/(vestings), net | 4,429 | 4,429 | |||||
Other comprehensive income/(loss) | 2,883 | 2,883 | |||||
Exercise of stock options, net | 8 | (23,061) | (23,053) | ||||
Issuance/(forfeiture) of common and restricted shares, net | (1) | (1,738) | (1,739) | ||||
Adjustment for conversion of noncontrolling interest of unitholders in the Operating Partnership and DownREIT Partnership | 5 | 13,146 | 13,151 | ||||
Common stock distributions declared ($0.3425, $0.3225 per share for the three months ended September 30, 2019 and 2018 and $1.0275, $0.9675 per share for the nine months ended September 30, 2019 and 2018, respectively) | (259,214) | (259,214) | |||||
Preferred stock distributions declared-Series E ($0.3708, $0.3492 per share for the three months ended September 30, 2019 and 2018 and $1.1124, $1.0476 per share for the nine months ended September 30, 2019 and 2018, respectively) | (2,897) | (2,897) | |||||
Adjustment to reflect redemption value of redeemable noncontrolling interests | (62,655) | (62,655) | |||||
Ending Balance at Sep. 30, 2018 | 46,201 | 2,684 | 4,619,570 | (2,075,402) | 202 | 14,208 | 2,607,463 |
Beginning Balance at Jun. 30, 2018 | 46,201 | 2,677 | 4,639,147 | (1,929,124) | (1,407) | 11,256 | 2,768,750 |
Consolidated Statements of Changes in Equity | |||||||
Net income/(loss) attributable to UDR, Inc. | 18,610 | 18,610 | |||||
Net income/(loss) attributable to noncontrolling interests | 21 | 21 | |||||
Long Term Incentive Plan Unit grants/(vestings), net | 2,931 | 2,931 | |||||
Other comprehensive income/(loss) | 1,609 | 1,609 | |||||
Exercise of stock options, net | 8 | (23,061) | (23,053) | ||||
Issuance/(forfeiture) of common and restricted shares, net | (1) | 2,993 | 2,992 | ||||
Adjustment for conversion of noncontrolling interest of unitholders in the Operating Partnership and DownREIT Partnership | 491 | 491 | |||||
Common stock distributions declared ($0.3425, $0.3225 per share for the three months ended September 30, 2019 and 2018 and $1.0275, $0.9675 per share for the nine months ended September 30, 2019 and 2018, respectively) | (86,560) | (86,560) | |||||
Preferred stock distributions declared-Series E ($0.3708, $0.3492 per share for the three months ended September 30, 2019 and 2018 and $1.1124, $1.0476 per share for the nine months ended September 30, 2019 and 2018, respectively) | (971) | (971) | |||||
Adjustment to reflect redemption value of redeemable noncontrolling interests | (77,357) | (77,357) | |||||
Ending Balance at Sep. 30, 2018 | 46,201 | 2,684 | 4,619,570 | (2,075,402) | 202 | 14,208 | 2,607,463 |
Beginning Balance at Dec. 31, 2018 | 46,201 | 2,755 | 4,920,732 | (2,063,996) | (67) | 17,152 | 2,922,777 |
Consolidated Statements of Changes in Equity | |||||||
Net income/(loss) attributable to UDR, Inc. | 87,326 | 87,326 | |||||
Net income/(loss) attributable to noncontrolling interests | 97 | 97 | |||||
Contribution of noncontrolling interests in consolidated real estate | 125 | 125 | |||||
Long Term Incentive Plan Unit grants/(vestings), net | 7,839 | 7,839 | |||||
Other comprehensive income/(loss) | (8,955) | (8,955) | |||||
Issuance/(forfeiture) of common and restricted shares, net | 877 | 877 | |||||
Issuance of common shares through public offering, net | 145 | 661,864 | 662,009 | ||||
Adjustment for conversion of noncontrolling interest of unitholders in the Operating Partnership and DownREIT Partnership | 29 | 119,309 | 119,338 | ||||
Common stock distributions declared ($0.3425, $0.3225 per share for the three months ended September 30, 2019 and 2018 and $1.0275, $0.9675 per share for the nine months ended September 30, 2019 and 2018, respectively) | (294,180) | (294,180) | |||||
Preferred stock distributions declared-Series E ($0.3708, $0.3492 per share for the three months ended September 30, 2019 and 2018 and $1.1124, $1.0476 per share for the nine months ended September 30, 2019 and 2018, respectively) | (3,073) | (3,073) | |||||
Adjustment to reflect redemption value of redeemable noncontrolling interests | (222,405) | (222,405) | |||||
Ending Balance at Sep. 30, 2019 | 46,201 | 2,929 | 5,702,782 | (2,496,328) | (9,022) | 25,213 | 3,271,775 |
Beginning Balance at Jun. 30, 2019 | 46,201 | 2,831 | 5,244,819 | (2,336,609) | (7,838) | 18,611 | 2,968,015 |
Consolidated Statements of Changes in Equity | |||||||
Net income/(loss) attributable to UDR, Inc. | 27,204 | 27,204 | |||||
Net income/(loss) attributable to noncontrolling interests | 40 | 40 | |||||
Long Term Incentive Plan Unit grants/(vestings), net | 6,562 | 6,562 | |||||
Other comprehensive income/(loss) | (1,184) | (1,184) | |||||
Issuance/(forfeiture) of common and restricted shares, net | 1,175 | 1,175 | |||||
Issuance of common shares through public offering, net | 96 | 449,041 | 449,137 | ||||
Adjustment for conversion of noncontrolling interest of unitholders in the Operating Partnership and DownREIT Partnership | 2 | 7,747 | 7,749 | ||||
Common stock distributions declared ($0.3425, $0.3225 per share for the three months ended September 30, 2019 and 2018 and $1.0275, $0.9675 per share for the nine months ended September 30, 2019 and 2018, respectively) | (100,657) | (100,657) | |||||
Preferred stock distributions declared-Series E ($0.3708, $0.3492 per share for the three months ended September 30, 2019 and 2018 and $1.1124, $1.0476 per share for the nine months ended September 30, 2019 and 2018, respectively) | (1,031) | (1,031) | |||||
Adjustment to reflect redemption value of redeemable noncontrolling interests | (85,235) | (85,235) | |||||
Ending Balance at Sep. 30, 2019 | $ 46,201 | $ 2,929 | $ 5,702,782 | $ (2,496,328) | $ (9,022) | $ 25,213 | $ 3,271,775 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Common stock distributions declared per share | $ 0.3425 | $ 0.3225 | $ 1.0275 | $ 0.9675 |
8.00% Series E Cumulative Convertible Preferred Stock | ||||
Preferred stock distributions declared | $ 0.3708 | $ 0.3492 | $ 1.1124 | $ 1.0476 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities | ||
Net income/(loss) | $ 94,342 | $ 131,927 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||
Depreciation and amortization | 362,746 | 327,594 |
(Gain)/loss on sale of real estate owned | (5,282) | (70,300) |
(Income)/loss from unconsolidated entities | (19,387) | 5,091 |
Return on investment in unconsolidated joint ventures | 4,104 | 2,848 |
Amortization of share-based compensation | 13,020 | 10,694 |
Other | 14,098 | 2,108 |
Changes in operating assets and liabilities: | ||
(Increase)/decrease in operating assets | 49 | (13,199) |
Increase/(decrease) in operating liabilities | (6,814) | 9,961 |
Net cash provided by/(used in) operating activities | 456,876 | 406,724 |
Investing Activities | ||
Acquisition of real estate assets | (1,269,618) | |
Proceeds from sales of real estate investments, net | 38,000 | 89,433 |
Development of real estate assets | (19,248) | (136,170) |
Capital expenditures and other major improvements - real estate assets | (113,572) | (76,381) |
Capital expenditures - non-real estate assets | (11,147) | (2,963) |
Investment in unconsolidated joint ventures | (72,079) | (85,059) |
Distributions received from unconsolidated joint ventures | 61,412 | 30,574 |
Purchase deposits on pending acquisitions | (910) | (1,000) |
Repayment/(issuance) of notes receivable, net | 4,360 | (21,540) |
Net cash provided by/(used in) investing activities | (1,382,802) | (203,106) |
Financing Activities | ||
Payments on secured debt | (160,547) | (82,472) |
Proceeds from the issuance of secured debt | 162,500 | 80,000 |
Payments on unsecured debt | (300,000) | |
Net proceeds from the issuance of unsecured debt | 697,826 | |
Net proceeds/(repayment) of commercial paper | (41,115) | 115,000 |
Net proceeds/(repayment) of revolving bank debt | 34,431 | 29,243 |
Proceeds from the issuance of common shares through public offering, net | 662,009 | |
Repurchase of common shares | (19,988) | |
Distributions paid to redeemable noncontrolling interests | (24,764) | (24,297) |
Distributions paid to preferred stockholders | (3,016) | (2,854) |
Distributions paid to common stockholders | (282,709) | (255,683) |
Other | (4,039) | (36,317) |
Net cash provided by/(used in) financing activities | 740,576 | (197,368) |
Net increase/(decrease) in cash, cash equivalents, and restricted cash | (185,350) | 6,250 |
Cash, cash equivalents, and restricted cash, beginning of year | 208,891 | 21,830 |
Cash, cash equivalents, and restricted cash, end of period | 23,541 | 28,080 |
Supplemental Information: | ||
Interest paid during the period, net of amounts capitalized | 125,298 | 104,136 |
Cash paid/(refunds received) for income taxes | 1,953 | 579 |
Non-cash transactions: | ||
Transfer of investment in and advances to unconsolidated joint ventures to real estate owned | 15,639 | |
Recognition of operating lease right-of-use assets | 94,349 | |
Recognition of operating lease liabilities | 88,336 | |
Right-of-use asset obtained in exhange for operating lease liability remeasurement | 42,143 | |
Vesting of LTIP Units | 14,742 | 4,397 |
Development costs and capital expenditures incurred but not yet paid | 12,174 | 23,437 |
Conversion of Operating Partnership and DownREIT Partnership noncontrolling interests to common stock (2,862,780 shares in 2019 and 343,653 shares in 2018) | 119,338 | 13,151 |
Dividends declared but not yet paid | $ 108,939 | $ 95,372 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
The following reconciles cash, cash equivalents, and restricted cash to the total of the same amounts as shown above: | ||||
Cash and cash equivalents | $ 1,895 | $ 185,216 | $ 1,084 | $ 2,038 |
Restricted cash | 21,646 | 23,675 | 26,996 | 19,792 |
Total cash, cash equivalents, and restricted cash as shown above | $ 23,541 | $ 208,891 | $ 28,080 | $ 21,830 |
CONSOLIDATED STATEMENTS OF CA_3
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Non-cash transactions: | ||
Conversion of OP Units into common shares | 2,862,780 | 343,653 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2019 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION Basis of Presentation UDR, Inc., collectively with our consolidated subsidiaries (“UDR,” the “Company,” “we,” “our,” or “us”), is a self-administered real estate investment trust, or REIT, that owns, operates, acquires, renovates, develops, redevelops, and manages apartment communities. The accompanying consolidated financial statements include the accounts of UDR and its subsidiaries, including United Dominion Realty, L.P. (the “Operating Partnership” or the “OP”) and UDR Lighthouse DownREIT L.P. (the “DownREIT Partnership”). As of September 30, 2019, there were 184,063,542 units in the Operating Partnership (“OP Units”) outstanding, of which 176,210,072 OP Units, or 95.7%, were owned by UDR and 7,853,470 OP Units, or 4.3%, were owned by outside limited partners. As of September 30, 2019, there were 32,367,380 units in the DownREIT Partnership (“DownREIT Units”) outstanding, of which 18,104,895, or 55.9%, were owned by UDR (including 13,470,651 DownREIT Units, or 41.6%, that were held by the Operating Partnership) and 14,262,485, or 44.1%, were owned by outside limited partners. The consolidated financial statements of UDR include the noncontrolling interests of the unitholders in the Operating Partnership and DownREIT Partnership. The accompanying interim unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments and eliminations necessary for the fair presentation of our financial position as of September 30, 2019, and results of operations for the three and nine months ended September 30, 2019 and 2018, have been included. Such adjustments are normal and recurring in nature. The interim results presented are not necessarily indicative of results that can be expected for a full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2018 appearing in UDR’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 19, 2019. The accompanying interim unaudited consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the interim unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company evaluated subsequent events through the date its financial statements were issued. No significant recognized or non-recognized subsequent events were noted other than those noted in Note 7, Secured and Unsecured Debt, Net Commitments and Contingencies |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses, In February 2016, the FASB issued ASU 2016-02, Leases The Company elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Company also elected the short-term lease exception provided for in the standard and therefore only recognizes right-of-use assets and lease liabilities for leases with a term greater than one year. The Company recognized right-of-use assets of $94.3 million and lease liabilities of $88.3 million as of January 1, 2019 upon adoption of the standard. The right-of-use assets included $6.0 million of prepaid rent and intangible assets that was included within Other assets The lease liabilities represent the present value of the remaining minimum lease payments as of January 1, 2019 and primarily relate to ground leases for communities where we are the lessee. The right-of-use assets represent our right to use an underlying asset for the lease term, which are calculated utilizing the lease liabilities plus any prepaid lease payments and intangible assets for ground leases acquired in the purchase of real estate. Our right-of-use assets and related lease liabilities recognized as of January 1, 2019 may change as a result of updates to the projected future minimum lease payments. Certain of our ground lease agreements where we are the lessee have future minimum lease payments that reset in the future based upon a percentage of the fair market value of the land at the time of the reset. The Company will continue to recognize lease expense for these leases in a manner similar to previous accounting based on our election of the package of practical expedients. However, in the event we modify existing ground leases and/or enter into new ground leases subsequent to the adoption of the standard, such leases would likely be classified as finance leases under the standard and require expense recognition based on the effective interest method. Under the standard, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, subsequent to the adoption of the standard, we are now expensing non-incremental leasing costs as incurred. In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements Leases Principles of Consolidation The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Company first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. Real Estate Sales Gain Recognition For sale transactions resulting in a transfer of a controlling financial interest of a property, the Company generally derecognizes the related assets and liabilities from its Consolidated Balance Sheets and records the gain or loss in the period in which the transfer of control occurs. If control of the property has not transferred to the counterparty, the criteria for derecognition are not met and the Company will continue to recognize the related assets and liabilities on its Consolidated Balance Sheets. Sale transactions to entities in which the Company sells a controlling financial interest in a property but retains a noncontrolling interest are accounted for as partial sales. Partial sales resulting in a change in control are accounted for at fair value and a full gain or loss is recognized. Therefore, the Company will record a gain or loss on the partial interest sold, and the initial measurement of our retained interest will be accounted for at fair value. Sales of real estate to joint ventures or other noncontrolled investees are also accounted for at fair value and the Company will record a full gain or loss in the period the property is contributed. To the extent that the Company acquires a controlling financial interest in a property that it previously accounted for as an equity method investment, the Company will not remeasure its previously held interest if the acquisition is treated as an asset acquisition. The Company will include the carrying amount of its previously held equity method interest along with the consideration paid and transaction costs incurred in determining the amounts to allocate to the related assets and liabilities acquired on its Consolidated Balance Sheets. When treated as an asset acquisition, the Company will not recognize a gain or loss on consolidation of a property. Notes Receivable The following table summarizes our Notes receivable, net dollars in thousands): Interest rate at Balance Outstanding September 30, September 30, December 31, 2019 2019 2018 Note due December 2019 (a) 12.00 % $ 20,000 $ 20,000 Note due February 2020 (b) 10.00 % 15,649 14,659 Note due October 2020 (c) 8.00 % 2,250 2,000 Note due August 2022 (d) 10.00 % — 5,600 Total notes receivable, net $ 37,899 $ 42,259 (a) In March 2018, the Company entered into a secured note with an unaffiliated third party with an aggregate commitment of $20.0 million, of which $20.0 million has been funded. Interest payments are due when the loan matures. In March 2019, the note’s maturity was extended to December 27, 2019, and the note is secured by a parcel of land. (b) The Company has a secured note with an unaffiliated third party with an aggregate commitment of $16.4 million, of which $15.6 million has been funded, including $1.0 million funded during the nine months ended September 30, 2019. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the eighth anniversary of the date of the note (February 2020). (c) The Company has a secured note with an unaffiliated third party with an aggregate commitment of $2.3 million, of which $2.3 million has been funded, including $0.3 million funded during the nine months ended September 30, 2019. Interest payments are due when the loan matures. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $10.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (October 2020). (d) In January 2019, the $5.6 million secured note was repaid in full along with the contractually accrued interest of $0.2 million and an additional $8.5 million of promoted interest in conjunction with the unaffiliated third party being acquired. The Company recognized $1.2 million and $1.2 million of interest income from notes receivable during the three months ended September 30, 2019 and 2018, respectively, and $3.5 million and $2.9 million of interest income and $8.5 million and zero of promoted interest from notes receivable during the nine months ended September 30, 2019 and 2018, respectively, none of which was related party interest. Interest income and promoted interest are included in Interest income and other income/(expense), net Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to stockholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three and nine months ended September 30, 2019 and 2018, the Company’s other comprehensive income/(loss) consisted of the gain/(loss) on derivative instruments that are designated as and qualify as cash flow hedges, (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) into earnings, and the allocation of other comprehensive income/(loss) to noncontrolling interests. The (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) is included in Interest expense Derivatives and Hedging Activity, Income Taxes Due to the structure of the Company as a REIT and the nature of the operations for the operating properties, no provision for federal income taxes has been provided for at UDR. Historically, the Company has generally incurred only state and local excise and franchise taxes. UDR has elected for certain consolidated subsidiaries to be treated as taxable REIT subsidiaries (“TRS”). Income taxes for our TRS are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. The Company’s deferred tax assets are generally the result of differing depreciable lives on capitalized assets and timing of expense recognition for certain accrued liabilities. As of September 30, 2019 and December 31, 2018, UDR’s net deferred tax asset/(liability) was $(1.3) million and less than $(0.1) million, respectively. GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition. The Company recognizes its tax positions and evaluates them using a two-step process. First, UDR determines whether a tax position is more likely than not (greater than 50 percent probability) to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. UDR had no material unrecognized tax benefit, accrued interest or penalties at September 30, 2019. UDR and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The tax years 2016 through 2018 remain open to examination by tax jurisdictions to which we are subject. When applicable, UDR recognizes interest and/or penalties related to uncertain tax positions in Tax (provision)/benefit, net Forward Sales Agreements The Company utilizes forward sales agreements for the future issuance of its common stock. When the Company enters into a forward sales agreement, the contract requires the Company to sell its shares to a counterparty at a predetermined price at a future date. The net sales price and proceeds attained by the Company will be determined on the dates of settlement, with adjustments during the term of the contract for the Company’s anticipated dividends as well as for a daily interest factor that varies with changes in the federal funds rate. The Company generally has the ability to determine the dates and method of settlement (i.e., gross physical settlement, net share settlement or cash settlement), subject to certain conditions and the right of the counterparty to accelerate settlement under certain circumstances. The Company accounts for the shares of common stock reserved for issuance upon settlement as equity in accordance with ASC 815-40, Contracts in Entity's Own Equity The guidance establishes a two-step process for evaluating whether an equity-linked financial instrument is considered indexed to its own stock by evaluating the instrument’s contingent exercise provisions and settlement provisions. We determined that (i) none of the agreements’ exercise contingencies were based on observable markets or indices besides those related to the market for our own stock price and operations; and (ii) none of the settlement provisions precluded the agreements from being indexed to our own stock. Based upon our determination that the forward sales agreements are considered indexed to our own stock as well as the agreements permitting us to share settle, we have determined that the forward sales agreements qualify for equity classification. Before the issuance of shares of common stock, upon physical or net share settlement of the forward sales agreements, the Company expects that the shares issuable upon settlement of the forward sales agreements will be reflected in its diluted income/(loss) per share calculations using the treasury stock method. Under this method, the number of shares of common stock used in calculating diluted income/(loss) per share is deemed to be increased by the excess, if any, of the number of shares of common stock that would be issued upon full physical settlement of the forward sales agreements over the number of shares of common stock that could be purchased by the Company in the open market (based on the average market price during the period) using the proceeds receivable upon full physical settlement (based on the adjusted forward sale price at the end of the reporting period). When the Company physically or net share settles any forward sales agreement, the delivery of shares of common stock would result in an increase in the number of weighted average common shares outstanding and dilution to basic income/(loss) per share. (See Note 8, Income/(Loss) per Share |
REAL ESTATE OWNED
REAL ESTATE OWNED | 9 Months Ended |
Sep. 30, 2019 | |
REAL ESTATE OWNED | |
REAL ESTATE OWNED | 3. REAL ESTATE OWNED Real estate assets owned by the Company consist of income producing operating properties, properties under development, land held for future development, and held for disposition properties. As of September 30, 2019, the Company owned and consolidated 138 communities in 13 states plus the District of Columbia totaling 43,683 apartment homes. The following table summarizes the carrying amounts for our real estate owned (at cost) as of September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, December 31, 2019 2018 Land $ 2,020,617 $ 1,849,799 Depreciable property — held and used: Land improvements 220,654 213,224 Building, improvements, and furniture, fixtures and equipment 9,260,709 8,133,136 Real estate intangible assets 40,570 — Under development: Land and land improvements 13,853 — Building, improvements, and furniture, fixtures and equipment 7,992 — Real estate owned 11,564,395 10,196,159 Accumulated depreciation (4,000,608) (3,654,160) Real estate owned, net $ 7,563,787 $ 6,541,999 Acquisitions In January 2019, the Company exercised its fixed-price option to purchase its joint venture partner’s ownership interest in a 386 apartment home operating community in Anaheim, California, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $33.5 million. In connection with the acquisition, the Company repaid approximately $59.8 million of joint venture construction financing. Joint Ventures and Partnerships In January 2019, the Company exercised its fixed-price option to purchase its joint venture partner’s ownership interest in a 155 apartment home operating community located in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $20.0 million. In connection with the acquisition, the Company repaid approximately $26.0 million of joint venture construction financing. In January 2019, the Company acquired a to-be-developed parcel of land located in Washington D.C. for approximately $27.1 million. In February 2019, the Company acquired a to-be-developed parcel of land located in Denver, Colorado for approximately $13.7 million. In February 2019, the Company acquired a 188 apartment home operating community located in Brooklyn, New York for approximately $132.1 million. T In February 2019, the Company acquired a 381 apartment home operating community located in St. Petersburg, Florida for approximately $98.3 million . In April 2019, the Company acquired a 498 apartment home operating community located in Towson, Maryland for approximately $86.4 million. In May 2019, the Company acquired a 313 apartment home operating community located in King of Prussia, Pennsylvania for approximately $107.3 million. The Company increased its real estate assets owned by approximately $106.4 million and recorded approximately $0.9 million of in-place lease intangibles. In May 2019, the Company acquired a 240 apartment home operating community located in St. Petersburg, Florida for approximately $49.4 million. The Company increased its real estate assets owned by approximately $48.2 million and recorded approximately $1.2 million of in-place lease intangibles. In June 2019, the Company acquired a 200 apartment home operating community located in Waltham, Massachusetts for approximately $84.6 million. The Company increased its real estate assets owned by approximately $82.6 million and recorded approximately $2.0 million of in-place lease intangibles. In August 2019, the Company acquired a 914 apartment home operating community located in Norwood, Massachusetts for approximately $270.2 million. The Company increased its real estate assets owned by approximately $260.1 million and recorded approximately $10.1 million of in-place lease intangibles. In August 2019, the Company acquired a 185 apartment home operating community located in Englewood, New Jersey for approximately $83.6 million. The Company increased its real estate assets owned by approximately $77.5 million and recorded approximately $4.6 million of real estate intangibles and approximately $1.5 million of in-place lease intangibles. In August 2019, the Company purchased a 292 apartment home operating community in Washington, D.C., directly from the UDR/KFH joint venture, thereby increasing its ownership interest from 30% to 100%, for a purchase price at 100% of approximately $184.0 million, before $2.8 million of closing costs incurred by UDR at acquisition (see Note 5, Joint Ventures and Partnerships Subsequent to the acquisition, the Company received a distribution from the UDR/KFH joint venture of $22.9 million related to the 30% interest it previously held in the community following the payment of closing costs and repayment of the joint venture mortgage debt. As a result of the acquisition, in August 2019, the Company consolidated the operating community. The Company had previously accounted for its 30% ownership interest as an unconsolidated joint venture. The Company accounted for the consolidation as an asset acquisition resulting in no gain or loss upon consolidation and increased its real estate owned by approximately $156.0 million and recorded approximately $5.9 million of in-place lease intangibles. In August 2019, the Company entered into an agreement with the Metropolitan Life Insurance Company (“MetLife”), its joint venture partner, to acquire the approximately 50% ownership interest not previously owned in 10 UDR/MetLife operating communities, one development community and four land parcels valued at $1.1 billion, or $557 million at UDR’s share. The transaction is expected to close during the fourth quarter of 2019, subject to customary closing conditions and closing price adjustments (see Note 5, Joint Ventures and Partnerships Dispositions In June 2019, the Company sold a parcel of land located in Los Angeles, California for $38.0 million, resulting in a gain of approximately $5.3 million. Prior to the sale, the parcel of land was subject to a ground lease, under which UDR was the lessor, scheduled to expire in 2065. The ground lease included a purchase option for the lessee to acquire the land during specific periods of the ground lease term. During the second quarter, the lessee exercised the purchase option resulting in this sale by the Company and the ground lease being terminated. Prior to the sale, the purchase option was not deemed to be a bargain purchase option. This ground lease existed as of the adoption of the new lease accounting guidance on January 1, 2019 and we did not reassess lease classification per the practical expedient provided by the standard. As a result, this ground lease continued to be classified as an operating lease and the land parcel subject to the ground lease continued to be recognized in Real estate held for investment Other Activity Predevelopment, development, and redevelopment projects and related costs are capitalized and reported on the Consolidated Balance Sheets as Total real estate owned, net of accumulated depreciation In connection with the acquisition of certain properties, the Company agreed to pay certain of the tax liabilities of certain contributors if the Company sells one or more of the properties contributed in a taxable transaction prior to the expiration of specified periods of time following the acquisition. The Company may, however, sell, without being required to pay any tax liabilities, any of such properties in a non-taxable transaction, including, but not limited to, a tax-deferred Section 1031 exchange. Further, the Company has agreed to maintain certain debt that may be guaranteed by certain contributors for specified periods of time following the acquisition. The Company, however, has the ability to refinance or repay guaranteed debt or to substitute new debt if the debt and the guaranty continue to satisfy certain conditions. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2019 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 4. VARIABLE INTEREST ENTITIES The Company has determined that the Operating Partnership and DownREIT Partnership are VIEs as the limited partners lack substantive kick-out rights and substantive participating rights. The Company has concluded that it is the primary beneficiary of, and therefore consolidates, the Operating Partnership and DownREIT Partnership based on its role as the sole general partner of the Operating Partnership and DownREIT Partnership. The Company’s role as community manager and its equity interests give us the power to direct the activities that most significantly impact the economic performance and the obligation to absorb potentially significant losses or the right to receive potentially significant benefits of the Operating Partnership and DownREIT Partnership. See the consolidated financial statements of the Operating Partnership presented within this Report and Note 4, Unconsolidated Entities |
JOINT VENTURES AND PARTNERSHIPS
JOINT VENTURES AND PARTNERSHIPS | 9 Months Ended |
Sep. 30, 2019 | |
JOINT VENTURES AND PARTNERSHIPS | |
JOINT VENTURES AND PARTNERSHIPS | 5. JOINT VENTURES AND PARTNERSHIPS UDR has entered into joint ventures and partnerships with unrelated third parties to own, operate, acquire, renovate, develop, redevelop, dispose of, and manage real estate assets that are either consolidated and included in Real estate owned Investment in and advances to unconsolidated joint ventures, net beneficiary. Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. UDR’s joint ventures and partnerships are funded with a combination of debt and equity. Our losses are limited to our investment and except as noted below, the Company does not guarantee any debt, capital payout or other obligations associated with our joint ventures and partnerships. The Company recognizes earnings or losses from our investments in unconsolidated joint ventures and partnerships consisting of our proportionate share of the net earnings or losses of the joint ventures and partnerships. In addition, we may earn fees for providing management services to the unconsolidated joint ventures and partnerships. The following table summarizes the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net, which are accounted for under the equity method of accounting as of September 30, 2019 and December 31, 2018 (dollars in thousands) Number of Number of Apartment Properties Homes Investment at UDR’s Ownership Interest Location of September 30, September 30, September 30, December 31, September 30, December 31, Joint Venture Properties 2019 2019 2019 2018 2019 2018 Operating and development: UDR/MetLife I Los Angeles, CA 1 operating community 150 $ 29,599 $ 30,839 50.0 % 50.0 % UDR/MetLife II (a) Various 18 operating communities 4,059 300,479 296,807 50.0 % 50.0 % Other UDR/MetLife Various 5 operating communities 1,437 102,435 115,668 50.6 % 50.6 % Joint Ventures UDR/MetLife Vitruvian Park ® (a) Addison, TX 4 operating communities; 1,879 75,858 71,730 50.0 % 50.0 % 1 development community (b); 4 land parcels UDR/KFH (c) Washington, D.C. — — 156 5,507 — % 30.0 % West Coast Development Joint Ventures (d) Los Angeles, CA 1 operating community 293 35,165 36,143 47.0 % 47.0 % Investment in and advances to unconsolidated joint ventures, net, before participating loan investment, preferred equity investments and other investments $ 543,692 $ 556,694 Income/(loss) from investments Investment at Three Months Ended Nine Months Ended Developer Capital Program Years To UDR September 30, December 31, September 30, September 30, and Other Investments (e) Location Rate Maturity Commitment (f) 2019 2018 2019 2018 2019 2018 Preferred equity investments: West Coast Development Joint Ventures (d) Various 6.5 % N/A $ — $ 17,080 $ 65,417 $ 71 $ 25 $ (100) $ 974 1532 Harrison (g) San Francisco, CA 11.0 % 2.8 24,645 29,753 24,986 802 721 2,324 1,492 1200 Broadway (h) Nashville, TN 8.0 % 3.0 55,558 62,666 58,982 1,244 859 3,619 1,870 Junction (i) Santa Monica, CA 12.0 % 2.8 8,800 10,072 9,211 299 141 861 141 1300 Fairmount (j) Philadelphia, PA Variable 3.9 51,393 36,404 8,318 930 27 1,724 27 Essex (k) Orlando, FL 12.5 % 3.9 12,886 14,347 9,940 443 46 1,182 46 Modera Lake Merritt (l) Oakland, CA 9.0 % 4.6 27,250 17,377 — 366 — 622 — Other investments: The Portals (m) Washington, D.C. 11.0 % 1.7 38,559 46,863 43,167 1,287 1,015 3,694 2,523 Other investment ventures N/A N/A N/A $ 18,000 12,926 4,154 $ 4,247 $ (77) $ 4,272 $ (262) Total Developer Capital Program and Other Investments 247,488 224,175 Total investment in and advances to unconsolidated joint ventures, net $ 791,180 $ 780,869 (a) In August 2019, the Company entered into an agreement with MetLife, its joint venture partner, to acquire the approximately 50% ownership interest not previously owned in 10 UDR/MetLife operating communities, one development community and four land parcels valued at $1.1 billion, or $557 million at UDR’s share, and to sell its approximately 50% ownership interest in five UDR/MetLife operating communities valued at $645 million, or $323 million at UDR’s share, to MetLife. The transaction is expected to close during the fourth quarter of 2019, subject to customary closing conditions and closing price adjustments. Upon closing of the transaction, the UDR/MetLife II joint venture will hold seven operating communities and the UDR/MetLife Vitruvian Park ® joint venture will no longer hold any properties. (b) The number of apartment homes for the communities under development presented in the table above is based on the projected number of total homes upon completion of development. As of September 30, 2019, no apartment homes had been completed in the development community held by UDR/MetLife Vitruvian Park ® . (c) As of January 1, 2019, the joint venture held three operating communities. In May 2019, the joint venture sold one community, a 217 home operating community in Arlington, Virginia, for a sales price of approximately $74.8 million. As a result, the Company recorded a gain on the sale of approximately $5.3 million, which is included in Income/(loss) from unconsolidated entities In July 2019, the joint venture sold the second community, a 151 home operating community in Silver Spring, Maryland, for a sales price of approximately $43.5 million. As a result, the Company recorded a gain on the sale of approximately $5.3 million, which is included in Income/(loss) from unconsolidated entities In August 2019, the joint venture sold the third community, a 292 home operating community in Washington, D.C., directly to the Company for a sales price at 100% of approximately $184.0 million, before $2.8 million of closing costs incurred by UDR at acquisition. The Company deferred its share of the gain on sale of approximately $23.8 million and recorded it as a reduction of the carrying amount of real estate assets owned (see Note 3, Real Estate Owned (d) In 2015, the Company entered into a joint venture agreement with an unaffiliated joint venture partner and paid $136.3 million for a 48% ownership interest in a portfolio of five communities that were under construction. The communities are located in three of the Company’s core, coastal markets: Seattle, Washington, Los Angeles, California and Orange County, California. UDR earns a 6.5% preferred return on its investment through each individual community’s date of stabilization, defined as when a community reaches 80% occupancy for 90 consecutive days, while the joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization, income and expense are shared based on each partner’s ownership percentage and the Company no longer receives a 6.5% preferred return on its investment in the stabilized community. The Company serves as property manager and earns a management fee during the lease-up phase and subsequent operation of each of the communities. The unaffiliated joint venture partner is the general partner of the joint venture and the developer of the communities. The Company has concluded it does not control the joint ventures and, therefore, accounts for them under the equity method of accounting. During 2017, the Company exercised its fixed-price option to purchase the joint venture partner’s ownership interest in one of the five communities, and the joint venture sold two of the four remaining communities. In January 2019, the Company exercised its fixed-price option to purchase its joint venture partner’s ownership interest in one of the two remaining communities, a 386 apartment home operating community in Orange County, California, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $33.5 million. As a result, the Company consolidated the operating community and it is no longer accounted for as a preferred equity investment in an unconsolidated joint venture (see Note 3, Real Estate Owned The Company and its joint venture partner continue to operate the one remaining community. In 2017, the Company entered into two additional joint venture agreements with the unaffiliated joint venture partner and paid $15.5 million for a 49% ownership interest in a 155 apartment home community in Seattle, Washington and $16.1 million for a 49% ownership interest in a 276 apartment home community in Hillsboro, Oregon (together with the 2015 joint venture described above, the “West Coast Development Joint Ventures”). UDR earns a 6.5% preferred return on its investments through the communities’ date of stabilization, as defined above, while our joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization of the communities, income and expense will be shared based on each partner’s ownership percentage and the Company will no longer receive a 6.5% preferred return on its investment. The Company serves as property manager and earns a management fee during the lease-up phase and subsequent operation of the stabilized communities. The unaffiliated joint venture partner is the general partner and the developer of the communities. The Company has concluded it does not control the joint ventures and, therefore, accounts for them under the equity method of accounting. The Company has a fixed-price option to acquire the remaining interest in the communities beginning one year after completion. The unaffiliated joint venture partner is providing certain guaranties and there are construction loans on the communities. In January 2019, the Company exercised its fixed-price option to purchase its joint venture partner’s ownership interest in the 155 apartment home operating community in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $20.0 million. As a result, the Company consolidated the operating community and it is no longer accounted for as a preferred equity investment in an unconsolidated joint venture (see Note 3, Real Estate Owned The Company’s recorded equity investment in the West Coast Development Joint Ventures at September 30, 2019 and December 31, 2018, of $52.2 million and $101.6 million, respectively, is inclusive of outside basis costs and our accrued but unpaid preferred return. (e) The Developer Capital Program is a program through which the Company makes investments, including preferred equity investments, mezzanine loans or other structured investments that may receive a fixed or variable yield on the investment and may include provisions pursuant to which the Company participates in the increase in value of the property upon monetization of the applicable property and/or holds fixed price purchase options. (f) Represents UDR’s maximum funding commitment only and therefore excludes other activity such as income from investments. (g) In June 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 136 apartment home community in San Francisco, California. The Company’s preferred equity investment of up to $24.6 million earns a preferred return of 11.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (h) In September 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 313 apartment home community in Nashville, Tennessee. The Company’s preferred equity investment of up to $55.6 million earns a preferred return of 8.0% per annum and receives a variable percentage of the value created from the project upon a capital or liquidating event. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (i) In August 2018, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 66 apartment home community in Santa Monica, CA. The Company’s preferred equity investment of $8.8 million earns a preferred return of 12.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (j) In August 2018, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 471 apartment home community in Philadelphia, PA. The Company’s preferred equity investment of up to $51.4 million earns a preferred return between 8.5% and 12.0% per annum and receives a variable percentage of the value created from the project upon a capital or liquidating event. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (k) In September 2018, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 330 apartment home community in Orlando, FL. The Company’s preferred equity investment of up to $12.9 million earns a preferred return of 12.5% per annum. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (l) In April 2019, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 173 apartment home community in Oakland, CA. The Company’s preferred equity investment of up to $27.3 million earns a preferred return of 9.0% per annum and receives a variable percentage of the value created from the project upon a capital or liquidating event. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting . (m) In May 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner. The joint venture has made a mezzanine loan to a third party developer of a 373 apartment home community in Washington, D.C. The unaffiliated joint venture partner is the managing member of the joint venture. The mezzanine loan is for up to $71.0 million at an interest rate of 13.5% per annum and carries a term of four years with one 12-month extension option. The Company’s commitment to the joint venture is approximately $38.6 million and earns a weighted average return of approximately 11.0% per annum. The Company has concluded that it does not control the joint venture and , therefore, accounts for it under the equity method of accounting. As of September 30, 2019 and December 31, 2018, the Company had deferred fees of $10.6 million and $11.0 million, respectively, which will be recognized through earnings over the weighted average life of the related properties, upon the disposition of the properties to a third party, or upon completion of certain development obligations. The Company recognized management fees of $6.4 million and $2.9 million during the three months ended September 30, 2019 and 2018, respectively, and $12.0 million and $ 8.7 million for the nine months ended September 30, 2019 and 2018, respectively, for management of the communities held by the joint ventures and partnerships. The management fees are included in Joint venture management and other fees on the Consolidated Statements of Operations. The Company may, in the future, make additional capital contributions to certain of our joint ventures and partnerships should additional capital contributions be necessary to fund acquisitions or operations. We evaluate our investments in unconsolidated joint ventures and partnerships when events or changes in circumstances indicate that there may be an other-than-temporary decline in value. We consider various factors to determine if a decrease in the value of the investment is other-than-temporary. The Company did not recognize any other-than-temporary impairments in the value of its investments in unconsolidated joint ventures or partnerships during the three and nine months ended September 30, 2019 and 2018. Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of September 30, 2019 and December 31, 2018 ( dollars in thousands September 30, December 31, 2019 2018 Total real estate, net $ 3,101,213 $ 3,311,034 Cash and cash equivalents 56,829 49,867 Other assets 165,767 124,428 Total assets $ 3,323,809 $ 3,485,329 Third party debt, net $ 1,909,223 $ 2,125,350 Accounts payable and accrued liabilities 73,803 71,272 Total liabilities 1,983,026 2,196,622 Total equity $ 1,340,783 $ 1,288,707 Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three and nine months ended September 30, 2019 and 2018 ( dollars in thousands : Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total revenues $ 75,378 $ 76,203 $ 233,836 $ 215,140 Property operating expenses 27,505 30,096 87,073 85,435 Real estate depreciation and amortization 26,027 29,545 83,661 85,063 Operating income/(loss) 21,846 16,562 63,102 44,642 Interest expense (20,779) (22,919) (64,309) (63,990) Gain/(loss) on sale of property (a) 97,201 — 115,558 — Net unrealized gain/(loss) on held investments 25,669 — 27,191 — Other income/(loss) 82 40 194 141 Net income/(loss) $ 124,019 $ (6,317) $ 141,736 $ (19,207) (a) Represent the gains on the sale of three operating communities at the UDR/KFH joint venture level, as described in note (c) to the table above summarizing the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2019 | |
LEASES | |
Leases | 6. LEASES Lessee - Ground and Office Leases UDR owns six communities that are subject to ground leases, under which UDR is the lessee, expiring between 2043 and 2103, inclusive of extension options we are reasonably certain will be exercised. In addition, UDR is a lessee to an operating lease related to office space rented by the Company with an expiration date in 2021. All of these leases existed as of the adoption of the new lease accounting guidance on January 1, 2019 and we did not reassess lease classification per the practical expedient provided by the standard. As such, these leases will continue to be classified as operating leases through the lease term expiration. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the remaining lease term. We currently do not hold any finance leases. As of September 30, 2019, the Operating lease right-of-use assets Operating lease liabilities Operating lease right-of-use assets Operating lease liabilities As the discount rate implicit in the leases was not readily determinable, we determined the discount rate for these leases utilizing the Company’s incremental borrowing rate at a portfolio level, adjusted for the remaining lease term, and the form of underlying collateral. The weighted average remaining lease term for these leases was 55.2 years at September 30, 2019 and the weighted average discount rate was 5.1% at September 30, 2019. Future minimum lease payments and total operating lease liabilities from our ground leases and office space as of September 30, 2019 are as follows (dollars in thousands): Ground Leases Office Space Total 2019 $ 1,953 $ 19 $ 1,972 2020 7,813 76 7,889 2021 7,813 32 7,845 2022 7,813 - 7,813 2023 7,813 - 7,813 Thereafter 370,467 - 370,467 Total future minimum lease payments (undiscounted) 403,672 127 403,799 Difference between future undiscounted cash flows and discounted cash flows (273,659) (5) (273,664) Total operating lease liabilities (discounted) $ 130,013 $ 122 $ 130,135 For purposes of recognizing our ground lease contracts, the Company uses the minimum lease payments, if stated in the agreement. For ground lease agreements where there is a rent reset provision based on a change in an index or a rate (i.e., changes in fair market rental rates or changes in the consumer price index) but that does not include a specified minimum lease payment, the Company uses the current rent over the remainder of the lease term. If there is a contingency upon which some or all of the variable lease payments that will be paid over the remainder of the lease term are based, which is resolved such that those payments now meet the definition of lease payments, the Company will remeasure the right-of-use asset and lease liability on the reset date. For the nine months ended September 30, 2019, Operating lease right-of-use assets Operating lease liabilities The components of operating lease expenses from our ground leases and office space were as follows (dollars in thousands) Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Ground lease expense: Contractual lease rent expense $ 1,954 $ 6,232 Variable ground lease expense (a) 187 469 Total ground lease expense (b) 2,141 6,701 Contractual office space expense (b) 19 57 Total operating lease expense (c) $ 2,160 $ 6,758 (a) Variable ground lease expense includes adjustments such as changes in the consumer price index and payments based on a percentage of income of the lessee. (b) Ground lease expense is reported within the line item Other operating expenses and office space expense is recorded in General and administrative on the Consolidated Statements of Operations. (c) For the nine months ended September 30, 2019, Operating lease right-of-use assets and Operating lease liabilities amortized by $0.6 million and $0.3 million, respectively. The Company recorded $0.1 million and $0.3 million of total operating lease expense during the three and nine months ended September 30, 2019, respectively, due to the net impact of the amortization. Lessor - Apartment Home, Retail and Commercial Space Leases UDR’s communities and retail and commercial space are leased to tenants under operating leases. As of September 30, 2019, our apartment home leases generally have initial terms of 12 months or less and represent approximately 98.1% of our total lease revenue. As of September 30, 2019, our retail and commercial space leases generally have initial terms of between 5 and 15 years and represent approximately 1.9% of our total lease revenue. Our apartment home leases are generally renewable at the end of the lease term, subject to potential increases in rental rates, and our retail and commercial space leases generally have renewal options, subject to associated increases in rental rates and certain other conditions. (See Note 14, Reportable Segments We previously owned a parcel of land subject to a ground lease under which UDR was the lessor, expiring in 2065. The ground lease included a purchase option for the lessee to acquire the land during specific periods of the ground lease term. In June 2019, the lessee exercised the purchase option and acquired the parcel of land for $38.0 million. (See Note 3, Real Estate Future minimum lease payments from our retail and commercial leases as of September 30, 2019 are as follows (dollars in thousands): Retail and Commercial Leases 2019 $ 4,958 2020 20,565 2021 19,788 2022 18,094 2023 16,843 Thereafter 92,719 Total future minimum lease payments (a) $ 172,967 (a) We have excluded our apartment home leases from this table as our apartment home leases generally have initial terms of 12 months of less. Certain of our leases with retail and commercial tenants provide for the payment by the lessee of additional variable rent based on a percentage of the tenant’s revenue. The amounts shown in the table above do not include these variable percentage rents. The Company recorded variable percentage rents of $0.1 million and $0.3 million during the three and nine months ended September 30, 2019. |
SECURED AND UNSECURED DEBT, NET
SECURED AND UNSECURED DEBT, NET | 9 Months Ended |
Sep. 30, 2019 | |
SECURED AND UNSECURED DEBT, NET | |
SECURED AND UNSECURED DEBT, NET | 7. SECURED AND UNSECURED DEBT, NET The following is a summary of our secured and unsecured debt at September 30, 2019 and December 31, 2018 ( dollars in thousands Principal Outstanding As of September 30, 2019 Weighted Weighted Average Average Number of September 30, December 31, Interest Years to Communities 2019 2018 Rate Maturity Encumbered Secured Debt: Fixed Rate Debt Mortgage notes payable (a) $ 575,965 $ 417,989 3.55 % 6.6 9 Fannie Mae credit facilities (b) — 90,000 — % — — Deferred financing costs (2,275) (1,343) Total fixed rate secured debt, net 573,690 506,646 3.55 % 6.6 9 Variable Rate Debt Tax-exempt secured notes payable (c) 27,000 94,700 2.07 % 12.5 1 Deferred financing costs (66) (119) Total variable rate secured debt, net 26,934 94,581 2.07 % 12.5 1 Total Secured Debt, net 600,624 601,227 3.49 % 6.8 10 Unsecured Debt: Variable Rate Debt Borrowings outstanding under unsecured credit facility due January 2023 (d) (l) — — — % 3.3 Borrowings outstanding under unsecured commercial paper program due October 2019 (e) (l) 60,000 101,115 2.28 % 0.1 Borrowings outstanding under unsecured working capital credit facility due January 2021 34,447 16 2.84 % 1.3 Term Loan due September 2023 (d) (l) 35,000 35,000 3.01 % 4.0 Fixed Rate Debt 3.70% Medium-Term Notes due October 2020 (net of discounts of $0 and $14, respectively) (k) (l) — 299,986 — % — 4.63% Medium-Term Notes due January 2022 (net of discounts of $818 and $1,087, respectively) (l) 399,182 398,913 4.63 % 2.3 1.93% Term Loan due September 2023 (d) (l) 315,000 315,000 1.93 % 4.0 3.75% Medium-Term Notes due July 2024 (net of discounts of $495 and $574, respectively) (g) (l) 299,505 299,426 3.75 % 4.8 8.50% Debentures due September 2024 15,644 15,644 8.50 % 5.0 4.00% Medium-Term Notes due October 2025 (net of discounts of $413 and $465, respectively) (h) (l) 299,587 299,535 4.00 % 6.0 2.95% Medium-Term Notes due September 2026 (l) 300,000 300,000 2.95 % 6.9 3.50% Medium-Term Notes due July 2027 (net of discounts of $547 and $600, respectively) (l) 299,453 299,400 3.50 % 7.8 3.50% Medium-Term Notes due January 2028 (net of discounts of $983 and $1,072, respectively) (l) 299,017 298,928 3.50 % 8.3 4.40% Medium-Term Notes due January 2029 (net of discounts of $6 and $6, respectively) (i) (l) 299,994 299,994 4.40 % 9.3 3.20% Medium-Term Notes due January 2030 (net of discounts of $990 and $0, respectively) (j) (l) 299,010 — 3.20 % 10.3 3.00% Medium-Term Notes due August 2031 (net of discounts of $1,148 and $0, respectively) (k) (l) 398,852 — 3.00 % 11.9 Other 14 16 Deferred financing costs (19,432) (16,413) Total Unsecured Debt, net 3,335,273 2,946,560 3.54 % 6.9 Total Debt, net $ 3,935,897 $ 3,547,787 3.63 % 6.9 For purposes of classification of the above table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument. Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. As of September 30, 2019, secured debt encumbered $1.2 billion or 10.3% of UDR’s total real estate owned based upon gross book value ($10.4 billion or 89.7% of UDR’s real estate owned based on gross book value is unencumbered). (a) During the three months ended September 30, 2019, the Company refinanced a $90.0 million loan with Fannie Mae to a fixed rate mortgage due in October 2029 and took out a new mortgage of $72.5 million due in February 2030. Interest payments are due monthly at interest rates of 2.70% and 3.10%, respectively. The refinancing was accounted for as a debt modification. The Company will from time to time acquire properties subject to fixed rate debt instruments. In those situations, the Company records the debt at its estimated fair value and amortizes any difference between the fair value and par value to interest expense over the life of the underlying debt instrument. During the three months ended September 30, 2019 and 2018, the Company had $0.6 million and $0.9 million, respectively, and during the nine months ended September 30, 2019 and 2018, the Company had $1.7 million and $2.4 million, respectively, of amortization of the fair market adjustment of debt assumed in the acquisition of properties, which was included in Interest expense (b) Further information related to the Fannie Mae credit facility is as follows (dollars in thousands) September 30, December 31, 2019 2018 Borrowings outstanding $ — $ 90,000 Weighted average borrowings during the period ended 80,000 253,813 Maximum daily borrowings during the period ended 90,000 314,869 Weighted average interest rate during the period ended 4.0 % 4.7 % Weighted average interest rate at the end of the period — % 4.0 % (c) (d) six-month extension options, subject to certain conditions. The Term Loan has a scheduled maturity date of September 30, 2023. Based on the Company’s current credit rating, the Revolving Credit Facility has an interest rate equal to LIBOR plus a margin of 82.5 basis points and a facility fee of 15 basis points, and the Term Loan has an interest rate equal to LIBOR plus a margin of 90 basis points. Depending on the Company’s credit rating, the margin under the Revolving Credit Facility ranges from 75 to 145 basis points, the facility fee ranges from 10 to 30 basis points, and the margin under the Term Loan ranges from 80 to 165 basis points. The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Credit Agreement also includes customary events of default, in certain cases subject to customary periods to cure. The occurrence of an event of default, following the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest and all other amounts payable under the Credit Agreement to be immediately due and payable. The following is a summary of short-term bank borrowings under the Revolving Credit Facility at September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, December 31, 2019 2018 Total revolving credit facility $ 1,100,000 $ 1,100,000 Borrowings outstanding at end of period (1) — — Weighted average daily borrowings during the period ended — — Maximum daily borrowings during the period ended — — Weighted average interest rate during the period ended — % — % Interest rate at end of the period — % — % (1) Excludes $2.8 million and $3.3 million of letters of credit at September 30, 2019 and December 31, 2018, respectively. (e) The following is a summary of short-term bank borrowings under the unsecured commercial paper program at September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, December 31, 2019 2018 Total unsecured commercial paper program $ 500,000 $ 500,000 Borrowings outstanding at end of period 60,000 101,115 Weighted average daily borrowings during the period ended 163,347 344,235 Maximum daily borrowings during the period ended 435,000 440,000 Weighted average interest rate during the period ended 2.7 % 2.4 % Interest rate at end of the period 2.3 % 2.9 % (f) 82.5 basis points. Depending on the Company’s credit rating, the margin ranges from 75 to 145 basis points. The following is a summary of short-term bank borrowings under the Working Capital Credit Facility at September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, December 31, 2019 2018 Total working capital credit facility $ 75,000 $ 75,000 Borrowings outstanding at end of period 34,447 16 Weighted average daily borrowings during the period ended 24,870 26,101 Maximum daily borrowings during the period ended 66,170 64,633 Weighted average interest rate during the period ended 3.2 % 2.9 % Interest rate at end of the period 2.8 % 3.3 % (g) (h) (i) (j) . (k) (l) The aggregate maturities, including amortizing principal payments on secured and unsecured debt, of total debt for the next ten calendar years subsequent to September 30, 2019 are as follows (dollars in thousands): Total Fixed Total Variable Total Total Total Year Secured Debt Secured Debt Secured Debt Unsecured Debt Debt 2019 $ 974 $ — $ 974 $ 60,000 $ 60,974 2020 108,077 — 108,077 — 108,077 2021 1,117 — 1,117 34,447 35,564 2022 1,157 — 1,157 400,000 401,157 2023 41,245 — 41,245 350,000 391,245 2024 — — — 315,644 315,644 2025 127,600 — 127,600 300,000 427,600 2026 50,000 — 50,000 300,000 350,000 2027 — — — 300,000 300,000 2028 80,000 — 80,000 300,000 380,000 Thereafter 162,500 27,000 189,500 1,000,000 1,189,500 Subtotal 572,670 27,000 599,670 3,360,091 3,959,761 Non-cash (a) 1,020 (66) 954 (24,818) (23,864) Total $ 573,690 $ 26,934 $ 600,624 $ 3,335,273 $ 3,935,897 (a) Includes the unamortized balance of fair market value adjustments, premiums/discounts and deferred financing costs . The Company amortized $1.1 million and $ 1.1 million, respectively, during the three months ended September 30, 2019 and 2018, and $3.1 million and $3.2 million, respectively, during the nine months ended September 30, 2019 and 2018, of deferred financing costs into Interest expense. We were in compliance with the covenants of our debt instruments at September 30, 2019. In October 2019, the Company issued $100.0 million of 3.20% senior unsecured medium-term notes due 2030 and $300.0 million of 3.10% senior unsecured medium-term notes due 2034. Interest is payable semi-annually in arrears on January 15 and July 15 for the 2030 notes, and May 1 and November 1 for the 2034 notes. The 2030 notes were priced at 103.32% of the principal amount at issuance, and the 2034 notes were priced at 99.56% of the principal amount at issuance. In combination with the issuance, the Company entered into treasury lock agreements to hedge against interest rate risk on all of this debt. The all-in weighted average interest rate, inclusive of the impact of the treasury locks, was 3.24% for the 2030 notes and 3.13% for the 2034 notes. The Company will use the net proceeds for the repayment of all $400.0 million aggregate principal amount (plus the make-whole amount of approximately $21.5 million and accrued and unpaid interest) of its 4.63% senior unsecured medium-term notes due January 2022. The 2034 notes were issued as “green” bonds and, as a result, the Company intends to allocate the net proceeds from the sale of the 2034 notes to fund eligible green projects, including previously incurred development costs related to properties that have received at least a LEED Silver certification. The 2030 notes are a further issuance of, and form a single series with, the $300.0 million aggregate principal amount of the Company’s 3.20% notes due 2030 that were issued on July 2, 2019. As of the completion of the offering, the aggregate principal amount of outstanding 2030 notes was $400.0 million. |
INCOME_(LOSS) PER SHARE
INCOME/(LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
INCOME/(LOSS) PER SHARE | |
INCOME/(LOSS) PER SHARE | 8. INCOME/(LOSS) PER SHARE The following table sets forth the computation of basic and diluted income/(loss) per share for the periods presented (dollars and shares in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Numerator for income/(loss) per share: Net income/(loss) $ 29,422 $ 20,258 $ 94,342 $ 131,927 Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (2,162) (1,616) (6,871) (10,819) Net (income)/loss attributable to noncontrolling interests (56) (32) (145) (141) Net income/(loss) attributable to UDR, Inc. 27,204 18,610 87,326 120,967 Distributions to preferred stockholders — Series E (Convertible) (1,031) (971) (3,073) (2,897) Income/(loss) attributable to common stockholders - basic and diluted $ 26,173 $ 17,639 $ 84,253 $ 118,070 Denominator for income/(loss) per share: Weighted average common shares outstanding 288,957 268,034 282,866 267,873 Non-vested restricted stock awards (251) (307) (268) (344) Denominator for basic income/(loss) per share 288,706 267,727 282,598 267,529 Incremental shares issuable from assumed conversion of stock options, unvested LTIP Units, unvested restricted stock, and shares issuable upon settlement of forward sales agreements 823 1,134 694 1,491 Denominator for diluted income/(loss) per share 289,529 268,861 283,292 269,020 Income/(loss) per weighted average common share: Basic $ 0.09 $ 0.07 $ 0.30 $ 0.44 Diluted $ 0.09 $ 0.07 $ 0.30 $ 0.44 Basic income/(loss) per common share is computed based upon the weighted average number of common shares outstanding. Diluted income/(loss) per common share is computed based upon the weighted average number of common shares outstanding plus the common shares issuable from the assumed conversion of the OP Units and DownREIT Units, convertible preferred stock, stock options, unvested long-term incentive plan units (“LTIP Units”), unvested restricted stock and continuous equity program forward sales agreements. Only those instruments having a dilutive impact on our basic income/(loss) per share are included in diluted income/(loss) per share during the periods. For the three and nine months ended September 30, 2019 and 2018, the effect of the conversion of the OP Units, DownREIT Units, LTIP Units, the Company’s Series E preferred stock and shares issuable upon settlement of forward sales agreements was not dilutive and therefore not included in the above calculation. In July 2017, the Company entered into an ATM sales agreement under which the Company may offer and sell up to 20.0 million shares of its common stock, from time to time, to or through its sales agents and may enter into separate forward sales agreements to or through its forward purchasers. Upon entering into the ATM sales agreement, the Company simultaneously terminated the sales agreement for its prior at-the-market equity offering program, which was entered into in April 2017, which replaced the prior at-the-market equity offering program entered into in April 2012. During the three months ended September 30, 2019, the Company sold 2.2 million shares of common stock through its ATM program for aggregate gross proceeds of approximately $100.5 million at a weighted average price per share of $46.19. Aggregate net proceeds from such sales, after deducting related expenses, including commissions paid to the sales agents of approximately $1.1 million, were approximately $99.4 million, which were primarily used to fund the Company’s recent acquisitions. During the nine months ended September 30, 2019, the Company sold 7.0 million shares of common stock through its ATM program for aggregate gross proceeds of approximately $316.5 million at a weighted average price per share of $45.29. Aggregate net proceeds from such sales, after deducting related expenses, including commissions paid to the sales agents of approximately $4.0 million, were approximately $312.3 million, which were primarily used to fund the Company’s recent acquisitions. As of September 30, 2019, we had 13.0 million shares of common stock available for future issuance under the ATM program. In connection with any forward sales agreement under the Company’s ATM program, the relevant forward purchasers will borrow from third parties and, through the relevant sales agent, acting in its role as forward seller, sell a number of shares of the Company’s common stock equal to the number of shares underlying the agreement. The Company does not initially receive any proceeds from any sale of borrowed shares by the forward seller. In September 2019, the Company entered into a forward sales agreement under its ATM program for 1.3 million shares of common stock at an initial forward price per share of $47.68. The initial forward price per share to be received by the Company upon settlement will be determined on the applicable settlement date based on adjustments made to the initial forward price to reflect the then-current federal funds rate and the amount of dividends paid to holders of UDR common stock over the term of the forward sales agreement. As of September 30, 2019, no shares under the forward sales agreement have been settled. The final date by which shares sold under the forward sales agreement must be settled is March 31, 2020. The Company generally has the ability to determine the dates and method of settlement (i.e., gross physical settlement, net share settlement or cash settlement), subject to certain conditions and the right of the counterparty to accelerate settlement under certain circumstances. The Company currently expects to fully physically settle each forward sales agreement with the relevant forward purchaser on one or more dates specified by the Company on or prior to the maturity date of that particular forward sales agreement, in which case the Company expects to receive aggregate net cash proceeds at settlement equal to the number of shares underlying the particular forward sales agreement multiplied by the relevant forward sale price. However, subject to certain exceptions, the Company may also elect, in its discretion, to cash settle or net share settle a particular forward sales agreement, in which case the Company may not receive any proceeds (in the case of cash settlement) or will not receive any proceeds (in the case of net share settlement), and the Company may owe cash (in the case of cash settlement) or shares of UDR common stock (in the case of net share settlement) to the relevant forward purchaser. In August 2019, the Company sold 7.5 million shares of its common stock for aggregate gross proceeds of approximately $349.9 million at a price per share of $46.65. Aggregate net proceeds from the sale, after offering-related expenses, were approximately $349.8 million, which were used for planned acquisitions of assets, working capital and general corporate purposes. The following table sets forth the additional shares of common stock outstanding by equity instrument if converted to common stock for each of the three and nine months ended September 30, 2019 and 2018 (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 OP/DownREIT Units 22,211 24,558 23,068 24,546 Convertible preferred stock 3,011 3,011 3,011 3,011 Stock options, unvested LTIP Units, unvested restricted stock, and forward sales shares 823 1,134 694 1,491 |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 9 Months Ended |
Sep. 30, 2019 | |
NONCONTROLLING INTERESTS | |
NONCONTROLLING INTERESTS | 9. NONCONTROLLING INTERESTS Redeemable Noncontrolling Interests in the Operating Partnership and DownREIT Partnership Interests in the Operating Partnership and the DownREIT Partnership held by limited partners are represented by OP Units and DownREIT Units, respectively. The income is allocated to holders of OP Units/DownREIT Units based upon net income attributable to common stockholders and the weighted average number of OP Units/DownREIT Units outstanding to total common shares plus OP Units/DownREIT Units outstanding during the period. Capital contributions, distributions, and profits and losses are allocated to noncontrolling interests in accordance with the terms of the partnership agreements of the Operating Partnership and the DownREIT Partnership. Limited partners of the Operating Partnership and the DownREIT Partnership have the right to require such partnership to redeem all or a portion of the OP Units/DownREIT Units held by the limited partner at a redemption price equal to and in the form of the Cash Amount (as defined in the partnership agreement of the Operating Partnership or the DownREIT Partnership, as applicable), provided that such OP Units/DownREIT Units have been outstanding for at least one year, subject to certain exceptions. UDR, as the general partner of the Operating Partnership and the DownREIT Partnership may, in its sole discretion, purchase the OP Units/DownREIT Units by paying to the limited partner either the Cash Amount or the REIT Share Amount (generally one share of common stock of the Company for each OP Unit/DownREIT Unit), as defined in the partnership agreement of the Operating Partnership or the DownREIT Partnership, as applicable. Accordingly, the Company records the OP Units/DownREIT Units outside of permanent equity and reports the OP Units/DownREIT Units at their redemption value using the Company’s stock price at each balance sheet date. The following table sets forth redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership for the following period ( dollars in thousands Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, December 31, 2018 $ 972,740 Mark-to-market adjustment to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership 222,405 Conversion of OP Units/DownREIT Units to Common Stock (119,338) Net income/(loss) attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership 6,871 Distributions to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (24,509) Vesting of Long-Term Incentive Plan Units 14,742 Allocation of other comprehensive income/(loss) (730) Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, September 30, 2019 $ 1,072,181 Noncontrolling Interests Noncontrolling interests represent interests of unrelated partners and unvested LTIP Units in certain consolidated affiliates, and are presented as part of equity on the Consolidated Balance Sheets since these interests are not redeemable. Net (income)/loss attributable to noncontrolling interests The Company grants LTIP Units to certain employees and non-employee directors. The LTIP Units represent an ownership interest in the Operating Partnership and have vesting terms of between one and three years, specific to the individual grants. Noncontrolling interests related to long-term incentive plan units represent the unvested LTIP Units of these employees and non-employee directors in the Operating Partnership. The net income/(loss) allocated to the unvested LTIP Units is included in Net (income)/loss attributable to noncontrolling interests |
FAIR VALUE OF DERIVATIVES AND F
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2019 | |
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | |
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | 10. FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS Fair value is based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: ● Level 1 — Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. ● Level 2 — Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. ● Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The estimated fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis as of September 30, 2019 and December 31, 2018, are summarized as follows (dollars in thousands) Fair Value at September 30, 2019, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable September 30, September 30, Liabilities Inputs Inputs 2019 2019 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 37,899 $ 42,613 $ — $ — $ 42,613 Derivatives - Interest rate contracts (b) 730 730 — 730 — Total assets $ 38,629 $ 43,343 $ — $ 730 $ 42,613 Derivatives - Interest rate contracts (b) $ 469 $ 469 $ — $ 469 $ — Secured debt instruments - fixed rate: (c) Mortgage notes payable 575,965 569,318 — — 569,318 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 27,000 27,000 — — 27,000 Unsecured debt instruments: (c) Working capital credit facility 34,447 34,447 — — 34,447 Commercial paper program 60,000 60,000 — — 60,000 Unsecured notes 3,260,258 3,415,618 — — 3,415,618 Total liabilities $ 3,958,139 $ 4,106,852 $ — $ 469 $ 4,106,383 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 1,072,181 $ 1,072,181 $ — $ 1,072,181 $ — Fair Value at December 31, 2018, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable December 31, December 31, Liabilities Inputs Inputs 2018 2018 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 42,259 $ 45,026 $ — $ — $ 45,026 Derivatives - Interest rate contracts (b) 4,757 4,757 — 4,757 — Total assets $ 47,016 $ 49,783 $ — $ 4,757 $ 45,026 Derivatives - Interest rate contracts (b) $ 356 $ 356 $ — $ 356 $ — Secured debt instruments - fixed rate: (c) Mortgage notes payable 417,989 416,314 — — 416,314 Fannie Mae credit facility 90,000 90,213 — — 90,213 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 94,700 94,700 — — 94,700 Unsecured debt instruments: (c) Working capital credit facility 16 16 — — 16 Commercial paper program 101,115 101,115 — — 101,115 Unsecured notes 2,861,842 2,829,390 — — 2,829,390 Total liabilities $ 3,566,018 $ 3,532,104 $ — $ 356 $ 3,531,748 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 972,740 $ 972,740 $ — $ 972,740 $ — (a) See Note 2, Significant Accounting Policies . (b) See Note 11, Derivatives and Hedging Activity . (c) See Note 7, Secured and Unsecured Debt, Net . (d) See Note 9, Noncontrolling Interests. There were no transfers into or out of any of the levels of the fair value hierarchy during the nine months ended September 30, 2019. Financial Instruments Carried at Fair Value The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair values of interest rate options are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2019 and December 31, 2018, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. In conjunction with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership have a redemption feature and are marked to their redemption value. The redemption value is based on the fair value of the Company’s common stock at the redemption date, and therefore, is calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership are classified as Level 2. Financial Instruments Not Carried at Fair Value At September 30, 2019 and December 31, 2018, the fair values of cash and cash equivalents, restricted cash, accounts receivable, prepaids, real estate taxes payable, accrued interest payable, security deposits and prepaid rent, distributions payable and accounts payable approximated their carrying values because of the short term nature of these instruments. The estimated fair values of other financial instruments, which includes notes receivable and debt instruments, are classified in Level 3 of the fair value hierarchy due to the significant unobservable inputs that are utilized in their respective valuations. We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by the future operation and disposition of those assets are less than the net book value of those assets. Our cash flow estimates are based upon historical results adjusted to reflect our best estimate of future market and operating conditions and our estimated holding periods. The net book value of impaired assets is reduced to fair value. Our estimates of fair value represent our best estimate based upon Level 3 inputs such as industry trends and reference to market rates and transactions. We consider various factors to determine if a decrease in the value of our Investment in and advances to unconsolidated joint ventures, net After determining an other-than-temporary decrease in the value of an equity method investment has occurred, we estimate the fair value of our investment by estimating the proceeds we would receive upon a hypothetical liquidation of the investment at the date of measurement. Inputs reflect management’s best estimate of what market participants would use in pricing the investment giving consideration to the terms of the joint venture agreement and the estimated discounted future cash flows to be generated from the underlying joint venture assets. The inputs and assumptions utilized to estimate the future cash flows of the underlying assets are based upon the Company’s evaluation of the economy, market trends, operating results, and other factors, including judgments regarding costs to complete any construction activities, lease up and occupancy rates, rental rates, inflation rates, capitalization rates utilized to estimate the projected cash flows at the disposition, and discount rates. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITY | 9 Months Ended |
Sep. 30, 2019 | |
DERIVATIVES AND HEDGING ACTIVITY | |
DERIVATIVES AND HEDGING ACTIVITY | 11. DERIVATIVES AND HEDGING ACTIVITY Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in Accumulated other comprehensive income/(loss), net Amounts reported in Accumulated other comprehensive income/(loss), net Interest expense As of September 30, 2019, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk ( dollars in thousands Number of Product Instruments Notional Interest rate swaps (a) 4 $ 315,000 (a) In addition to the interest rate swaps summarized above, the Company entered into an additional interest rate swap with a notional value of $315.0 million that will become effective in January 2020 upon the maturity of the interest rate swaps summarized above. Additionally, the Company had previously entered into two additional interest rate swaps with a notional value totaling $75.0 million that were subsequently terminated and settled during the nine months ended September 30, 2019 in conjunction with the July 2019 issuance of $300.0 million of senior unsecured medium-term notes as disclosed in Note 7, Secured and Unsecured, Net Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in no gain or loss for both the three and nine months ended September 30, 2019 and 2018. As of September 30, 2019, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships ( dollars in thousands Number of Product Instruments Notional Interest rate caps 1 $ 19,880 Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 ( dollars in thousands Asset Derivatives Liability Derivatives (included in Other assets ) (included in Other liabilities ) Fair Value at: Fair Value at: September 30, December 31, September 30, December 31, 2019 2018 2019 2018 Derivatives designated as hedging instruments: Interest rate products $ 730 $ 4,757 $ 469 $ 356 Tabular Disclosure of the Effect of Derivative Instruments on the Consolidated Statements of Operations The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018 ( dollars in thousands Gain/(Loss) Recognized in Gain/(Loss) Reclassified Interest expense Unrealized holding gain/(loss) from Accumulated OCI into (Amount Excluded from Recognized in OCI Interest expense Effectiveness Testing) Derivatives in Cash Flow Hedging Relationships 2019 2018 2019 2018 2019 2018 Three Months Ended September 30, Interest rate products $ (659) $ 2,320 $ 624 $ 564 $ — $ — Nine Months Ended September 30, Interest rate products $ (7,181) $ 4,312 $ 2,504 $ 1,162 $ — $ — Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total amount of Interest expense $ 42,523 $ 34,401 $ 110,482 $ 95,942 The Company did not recognize any gain/(loss) in Interest income and other income/(expense), net Credit-risk-related Contingent Features The Company has agreements with its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. The Company has certain agreements with some of its derivative counterparties that contain a provision where, in the event of default by the Company or the counterparty, the right of setoff may be exercised. Any amount payable to one party by the other party may be reduced by its setoff against any amounts payable by the other party. Events that give rise to default by either party may include, but are not limited to, the failure to pay or deliver payment under the derivative agreement, the failure to comply with or perform under the derivative agreement, bankruptcy, a merger without assumption of the derivative agreement, or in a merger, a surviving entity’s creditworthiness is materially weaker than the original party to the derivative agreement. As of September 30, 2019, the fair value of derivatives was in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, of $0.5 million. Tabular Disclosure of Offsetting Derivatives The Company has elected not to offset derivative positions on the consolidated financial statements. The tables below present the effect on its financial position had the Company made the election to offset its derivative positions as of September 30, 2019 and December 31, 2018 (dollars in thousands): Gross Net Amounts of Gross Amounts Not Offset Amounts Assets in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Assets Assets Sheets (a) Instruments Received Net Amount September 30, 2019 $ 730 $ — $ 730 $ (371) $ — $ 359 December 31, 2018 $ 4,757 $ — $ 4,757 $ — $ — $ 4,757 (a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. Gross Net Amounts of Gross Amounts Not Offset Amounts Liabilities in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Liabilities Liabilities Sheets (a) Instruments Posted Net Amount September 30, 2019 $ 469 $ — $ 469 $ (371) $ — $ 98 December 31, 2018 $ 356 $ — $ 356 $ — $ — $ 356 (a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2019 | |
EMPLOYEE BENEFIT PLANS | |
STOCK BASED COMPENSATION | 12. STOCK BASED COMPENSATION The Company recognized stock based compensation expense, inclusive of awards granted to our non-employee directors, net of capitalization, of $4.5 million and $3.6 million during the three months ended September 30, 2019 and 2018, respectively, and $13.0 million and $10.7 million during the nine months ended September 30, 2019 and 2018, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES Commitments Real Estate Commitments The following summarizes the Company’s real estate commitments at September 30, 2019 ( dollars in thousands Number UDR's UDR's Remaining Properties Investment (a) Commitment Wholly-owned — under development 1 $ 21,845 $ 75,655 Wholly-owned — redevelopment 2 11,582 23,918 Joint ventures: Unconsolidated joint ventures - development 1 14,402 21,496 (b) Preferred equity investments 2 53,781 (c) 27,390 (d) Other investments - 12,926 9,000 (e) Total $ 114,536 $ 157,459 (a) Represents UDR’s investment as of September 30, 2019. (b) Represents UDR’s proportionate share of expected remaining costs to complete the development. (c) Represents UDR’s investment in 1300 Fairmount and Modera Lake Merritt for the properties under development as of September 30, 2019. (d) Represents UDR’s remaining commitment for 1300 Fairmount and Modera Lake Merritt. (e) Represents UDR’s remaining commitment for other investment ventures. Purchase Commitments In 2019, the Company entered into a contract to purchase a development land parcel located in King of Prussia, Pennsylvania for a purchase price of approximately $14.8 million. The Company made a $0.8 million deposit on the purchase, which is generally non-refundable other than due to a failure of closing conditions pursuant to the terms of the purchase agreement. The acquisition is expected to close in 2020, subject to customary closing conditions. Contingencies Litigation and Legal Matters The Company is subject to various legal proceedings and claims arising in the ordinary course of business. The Company cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The Company believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on our financial condition, results of operations or cash flows. |
REPORTABLE SEGMENTS
REPORTABLE SEGMENTS | 9 Months Ended |
Sep. 30, 2019 | |
REPORTABLE SEGMENTS | |
REPORTABLE SEGMENTS | 14. REPORTABLE SEGMENTS GAAP guidance requires that segment disclosures present the measure(s) used by the Chief Operating Decision Maker to decide how to allocate resources and for purposes of assessing such segments’ performance. UDR’s Chief Operating Decision Maker is comprised of several members of its executive management team who use several generally accepted industry financial measures to assess the performance of the business for our reportable operating segments. UDR owns and operates multifamily apartment communities that generate rental and other property related income through the leasing of apartment homes to a diverse base of tenants. The primary financial measures for UDR’s apartment communities are rental income and net operating income (“NOI”). Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. NOI is defined as rental income less direct property rental expenses. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI is property management expense, which is calculated as 2.875% of property revenue to cover the regional supervision and accounting costs related to consolidated property operations, and land rent. UDR’s Chief Operating Decision Maker utilizes NOI as the key measure of segment profit or loss. UDR’s two reportable segments are Same-Store Communities Non-Mature Communities/Other ● Same-Store Communities represent those communities acquired, developed, and stabilized prior to July 1, 2018 (for quarter-to-date comparison) or January 1, 2018 (for year-to-date comparison) and held as of September 30, 2019. A comparison of operating results from the prior year is meaningful as these communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior period, there is no plan to conduct substantial redevelopment activities, and the community is not held for disposition within the current year. A community is considered to have stabilized occupancy once it achieves 90% occupancy for at least three consecutive months. ● Non-Mature Communities/Other represent those communities that do not meet the criteria to be included in Same-Store Communities , including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed use properties. Management evaluates the performance of each of our apartment communities on a Same-Store Community Non-Mature Community/Other Revenue is measured based on consideration specified in contracts with customers. The Company recognizes revenue when it satisfies a performance obligation by providing the services specified in a contract to the customer. All revenues are from external customers and no single tenant or related group of tenants contributed 10% or more of UDR’s total revenues during the three and nine months ended September 30, 2019 and 2018. The following is a description of the principal streams from which the Company generates its revenue: Lease Revenue Lease revenue related to leases is recognized on an accrual basis when due from residents or tenants in accordance with ASC 842, Leases Lease revenue also includes all pass-through revenue from retail and residential leases and common area maintenance reimbursements from retail leases. These services represent non-lease components in a contract as the Company transfers a service to the lessee other than the right to use the underlying asset. The Company has elected the practical expedient under the leasing standard to not separate lease and non-lease components from its resident and retail lease contracts as the timing and pattern of revenue recognition for the non-lease component and related lease component are the same and the combined single lease component would be classified as an operating lease. Other Revenue Joint venture management and other fees The Joint venture management and other fees Joint venture management and other fees The following table details rental income and NOI for UDR’s reportable segments for the three and nine months ended September 30, 2019 and 2018, and reconciles NOI to Net income/(loss) attributable to UDR, Inc. (dollars in thousands) Three Months Ended Nine Months Ended September 30, (a) September 30, (b) 2019 2018 2019 2018 Reportable apartment home segment lease revenue Same-Store Communities West Region $ 99,316 $ 95,447 $ 293,294 $ 281,722 Mid-Atlantic Region 52,826 51,291 157,179 152,867 Southeast Region 28,540 27,773 84,551 81,554 Northeast Region 30,196 29,491 89,650 87,776 Southwest Region 15,451 15,060 40,705 39,586 Non-Mature Communities/Other 40,975 24,237 106,499 66,906 Total segment and consolidated rental income $ 267,304 $ 243,299 $ 771,878 $ 710,411 Reportable apartment home segment other revenue Same-Store Communities West Region $ 7,869 $ 7,168 $ 23,488 $ 21,567 Mid-Atlantic Region 4,376 4,032 12,958 11,944 Southeast Region 3,438 3,211 10,423 9,918 Northeast Region 1,321 1,226 3,753 3,422 Southwest Region 1,527 1,525 4,100 3,986 Non-Mature Communities/Other 3,173 2,795 8,793 9,125 Total segment and consolidated rental income $ 21,704 $ 19,957 $ 63,515 $ 59,962 Total reportable apartment home segment rental income Same-Store Communities West Region $ 107,185 $ 102,615 $ 316,782 $ 303,289 Mid-Atlantic Region 57,202 55,323 170,137 164,811 Southeast Region 31,978 30,984 94,974 91,472 Northeast Region 31,517 30,717 93,403 91,198 Southwest Region 16,978 16,585 44,805 43,572 Non-Mature Communities/Other 44,148 27,032 115,292 76,031 Total segment and consolidated rental income $ 289,008 $ 263,256 $ 835,393 $ 770,373 Reportable apartment home segment NOI Same-Store Communities West Region $ 81,170 $ 77,321 $ 240,442 $ 229,129 Mid-Atlantic Region 39,850 38,220 119,075 114,465 Southeast Region 22,133 21,597 66,301 63,806 Northeast Region 20,560 20,640 63,012 62,710 Southwest Region 10,449 9,899 26,995 25,760 Non-Mature Communities/Other 29,487 17,137 77,242 48,833 Total segment and consolidated NOI 203,649 184,814 593,067 544,703 Reconciling items: Joint venture management and other fees 6,386 2,888 11,982 8,819 Property management (8,309) (7,240) (24,018) (21,185) Other operating expenses (2,751) (3,314) (11,132) (8,148) Real estate depreciation and amortization (127,391) (107,881) (357,793) (322,537) General and administrative (12,197) (11,896) (37,002) (36,028) Casualty-related (charges)/recoveries, net 1,088 (678) 842 (2,364) Other depreciation and amortization (1,619) (1,682) (4,953) (5,057) Gain/(loss) on sale of real estate owned — — 5,282 70,300 Income/(loss) from unconsolidated entities 12,713 (1,382) 19,387 (5,091) Interest expense (42,523) (34,401) (110,482) (95,942) Interest income and other income/(expense), net 1,875 1,188 12,998 5,075 Tax (provision)/benefit, net (1,499) (158) (3,836) (618) Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (2,162) (1,616) (6,871) (10,819) Net (income)/loss attributable to noncontrolling interests (56) (32) (145) (141) Net income/(loss) attributable to UDR, Inc. $ 27,204 $ 18,610 $ 87,326 $ 120,967 (a) Same-Store Community population consisted of 38,177 apartment homes. (b) Same-Store Community population consisted of 37,959 apartment homes. The following table details the assets of UDR’s reportable segments as of September 30, 2019 and December 31, 2018 (dollars in thousands) September 30, December 31, 2019 2018 Reportable apartment home segment assets: Same-Store Communities (a): West Region $ 3,797,149 $ 3,763,366 Mid-Atlantic Region 2,338,963 2,317,369 Southeast Region 799,739 779,310 Northeast Region 1,498,500 1,491,994 Southwest Region 595,982 589,188 Non-Mature Communities/Other 2,534,062 1,254,932 Total segment assets 11,564,395 10,196,159 Accumulated depreciation (4,000,608) (3,654,160) Total segment assets — net book value 7,563,787 6,541,999 Reconciling items: Cash and cash equivalents 1,895 185,216 Restricted cash 21,646 23,675 Notes receivable, net 37,899 42,259 Investment in and advances to unconsolidated joint ventures, net 791,180 780,869 Operating lease right-of-use assets 135,889 — Other assets 145,301 137,710 Total consolidated assets $ 8,697,597 $ 7,711,728 (a) Same-Store Community population consisted of 38,177 apartment homes. Markets included in the above geographic segments are as follows: i. West Region — Orange County, San Francisco, Seattle, Los Angeles, Monterey Peninsula, Other Southern California and Portland ii. Mid-Atlantic Region — Metropolitan D.C., Richmond and Baltimore iii. Southeast Region — Orlando, Nashville, Tampa and Other Florida iv. Northeast Region — New York and Boston v. Southwest Region — Dallas, Austin and Denver |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses, In February 2016, the FASB issued ASU 2016-02, Leases The Company elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Company also elected the short-term lease exception provided for in the standard and therefore only recognizes right-of-use assets and lease liabilities for leases with a term greater than one year. The Company recognized right-of-use assets of $94.3 million and lease liabilities of $88.3 million as of January 1, 2019 upon adoption of the standard. The right-of-use assets included $6.0 million of prepaid rent and intangible assets that was included within Other assets The lease liabilities represent the present value of the remaining minimum lease payments as of January 1, 2019 and primarily relate to ground leases for communities where we are the lessee. The right-of-use assets represent our right to use an underlying asset for the lease term, which are calculated utilizing the lease liabilities plus any prepaid lease payments and intangible assets for ground leases acquired in the purchase of real estate. Our right-of-use assets and related lease liabilities recognized as of January 1, 2019 may change as a result of updates to the projected future minimum lease payments. Certain of our ground lease agreements where we are the lessee have future minimum lease payments that reset in the future based upon a percentage of the fair market value of the land at the time of the reset. The Company will continue to recognize lease expense for these leases in a manner similar to previous accounting based on our election of the package of practical expedients. However, in the event we modify existing ground leases and/or enter into new ground leases subsequent to the adoption of the standard, such leases would likely be classified as finance leases under the standard and require expense recognition based on the effective interest method. Under the standard, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, subsequent to the adoption of the standard, we are now expensing non-incremental leasing costs as incurred. In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements Leases |
Principles of Consolidation | Principles of Consolidation The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Company first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. |
Real Estate Sales Gain Recognition | Real Estate Sales Gain Recognition For sale transactions resulting in a transfer of a controlling financial interest of a property, the Company generally derecognizes the related assets and liabilities from its Consolidated Balance Sheets and records the gain or loss in the period in which the transfer of control occurs. If control of the property has not transferred to the counterparty, the criteria for derecognition are not met and the Company will continue to recognize the related assets and liabilities on its Consolidated Balance Sheets. Sale transactions to entities in which the Company sells a controlling financial interest in a property but retains a noncontrolling interest are accounted for as partial sales. Partial sales resulting in a change in control are accounted for at fair value and a full gain or loss is recognized. Therefore, the Company will record a gain or loss on the partial interest sold, and the initial measurement of our retained interest will be accounted for at fair value. Sales of real estate to joint ventures or other noncontrolled investees are also accounted for at fair value and the Company will record a full gain or loss in the period the property is contributed. To the extent that the Company acquires a controlling financial interest in a property that it previously accounted for as an equity method investment, the Company will not remeasure its previously held interest if the acquisition is treated as an asset acquisition. The Company will include the carrying amount of its previously held equity method interest along with the consideration paid and transaction costs incurred in determining the amounts to allocate to the related assets and liabilities acquired on its Consolidated Balance Sheets. When treated as an asset acquisition, the Company will not recognize a gain or loss on consolidation of a property. |
Notes Receivable | Notes Receivable The following table summarizes our Notes receivable, net dollars in thousands): Interest rate at Balance Outstanding September 30, September 30, December 31, 2019 2019 2018 Note due December 2019 (a) 12.00 % $ 20,000 $ 20,000 Note due February 2020 (b) 10.00 % 15,649 14,659 Note due October 2020 (c) 8.00 % 2,250 2,000 Note due August 2022 (d) 10.00 % — 5,600 Total notes receivable, net $ 37,899 $ 42,259 (a) In March 2018, the Company entered into a secured note with an unaffiliated third party with an aggregate commitment of $20.0 million, of which $20.0 million has been funded. Interest payments are due when the loan matures. In March 2019, the note’s maturity was extended to December 27, 2019, and the note is secured by a parcel of land. (b) The Company has a secured note with an unaffiliated third party with an aggregate commitment of $16.4 million, of which $15.6 million has been funded, including $1.0 million funded during the nine months ended September 30, 2019. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the eighth anniversary of the date of the note (February 2020). (c) The Company has a secured note with an unaffiliated third party with an aggregate commitment of $2.3 million, of which $2.3 million has been funded, including $0.3 million funded during the nine months ended September 30, 2019. Interest payments are due when the loan matures. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $10.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (October 2020). (d) In January 2019, the $5.6 million secured note was repaid in full along with the contractually accrued interest of $0.2 million and an additional $8.5 million of promoted interest in conjunction with the unaffiliated third party being acquired. The Company recognized $1.2 million and $1.2 million of interest income from notes receivable during the three months ended September 30, 2019 and 2018, respectively, and $3.5 million and $2.9 million of interest income and $8.5 million and zero of promoted interest from notes receivable during the nine months ended September 30, 2019 and 2018, respectively, none of which was related party interest. Interest income and promoted interest are included in Interest income and other income/(expense), net |
Comprehensive Income/(Loss) | Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to stockholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three and nine months ended September 30, 2019 and 2018, the Company’s other comprehensive income/(loss) consisted of the gain/(loss) on derivative instruments that are designated as and qualify as cash flow hedges, (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) into earnings, and the allocation of other comprehensive income/(loss) to noncontrolling interests. The (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) is included in Interest expense Derivatives and Hedging Activity, |
Income Taxes | Income Taxes Due to the structure of the Company as a REIT and the nature of the operations for the operating properties, no provision for federal income taxes has been provided for at UDR. Historically, the Company has generally incurred only state and local excise and franchise taxes. UDR has elected for certain consolidated subsidiaries to be treated as taxable REIT subsidiaries (“TRS”). Income taxes for our TRS are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. The Company’s deferred tax assets are generally the result of differing depreciable lives on capitalized assets and timing of expense recognition for certain accrued liabilities. As of September 30, 2019 and December 31, 2018, UDR’s net deferred tax asset/(liability) was $(1.3) million and less than $(0.1) million, respectively. GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition. The Company recognizes its tax positions and evaluates them using a two-step process. First, UDR determines whether a tax position is more likely than not (greater than 50 percent probability) to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. UDR had no material unrecognized tax benefit, accrued interest or penalties at September 30, 2019. UDR and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The tax years 2016 through 2018 remain open to examination by tax jurisdictions to which we are subject. When applicable, UDR recognizes interest and/or penalties related to uncertain tax positions in Tax (provision)/benefit, net |
Forward Sales Agreements | Forward Sales Agreements The Company utilizes forward sales agreements for the future issuance of its common stock. When the Company enters into a forward sales agreement, the contract requires the Company to sell its shares to a counterparty at a predetermined price at a future date. The net sales price and proceeds attained by the Company will be determined on the dates of settlement, with adjustments during the term of the contract for the Company’s anticipated dividends as well as for a daily interest factor that varies with changes in the federal funds rate. The Company generally has the ability to determine the dates and method of settlement (i.e., gross physical settlement, net share settlement or cash settlement), subject to certain conditions and the right of the counterparty to accelerate settlement under certain circumstances. The Company accounts for the shares of common stock reserved for issuance upon settlement as equity in accordance with ASC 815-40, Contracts in Entity's Own Equity The guidance establishes a two-step process for evaluating whether an equity-linked financial instrument is considered indexed to its own stock by evaluating the instrument’s contingent exercise provisions and settlement provisions. We determined that (i) none of the agreements’ exercise contingencies were based on observable markets or indices besides those related to the market for our own stock price and operations; and (ii) none of the settlement provisions precluded the agreements from being indexed to our own stock. Based upon our determination that the forward sales agreements are considered indexed to our own stock as well as the agreements permitting us to share settle, we have determined that the forward sales agreements qualify for equity classification. Before the issuance of shares of common stock, upon physical or net share settlement of the forward sales agreements, the Company expects that the shares issuable upon settlement of the forward sales agreements will be reflected in its diluted income/(loss) per share calculations using the treasury stock method. Under this method, the number of shares of common stock used in calculating diluted income/(loss) per share is deemed to be increased by the excess, if any, of the number of shares of common stock that would be issued upon full physical settlement of the forward sales agreements over the number of shares of common stock that could be purchased by the Company in the open market (based on the average market price during the period) using the proceeds receivable upon full physical settlement (based on the adjusted forward sale price at the end of the reporting period). When the Company physically or net share settles any forward sales agreement, the delivery of shares of common stock would result in an increase in the number of weighted average common shares outstanding and dilution to basic income/(loss) per share. (See Note 8, Income/(Loss) per Share |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Summary of notes receivable, net | The following table summarizes our Notes receivable, net dollars in thousands): Interest rate at Balance Outstanding September 30, September 30, December 31, 2019 2019 2018 Note due December 2019 (a) 12.00 % $ 20,000 $ 20,000 Note due February 2020 (b) 10.00 % 15,649 14,659 Note due October 2020 (c) 8.00 % 2,250 2,000 Note due August 2022 (d) 10.00 % — 5,600 Total notes receivable, net $ 37,899 $ 42,259 (a) In March 2018, the Company entered into a secured note with an unaffiliated third party with an aggregate commitment of $20.0 million, of which $20.0 million has been funded. Interest payments are due when the loan matures. In March 2019, the note’s maturity was extended to December 27, 2019, and the note is secured by a parcel of land. (b) The Company has a secured note with an unaffiliated third party with an aggregate commitment of $16.4 million, of which $15.6 million has been funded, including $1.0 million funded during the nine months ended September 30, 2019. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the eighth anniversary of the date of the note (February 2020). (c) The Company has a secured note with an unaffiliated third party with an aggregate commitment of $2.3 million, of which $2.3 million has been funded, including $0.3 million funded during the nine months ended September 30, 2019. Interest payments are due when the loan matures. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $10.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (October 2020). (d) In January 2019, the $5.6 million secured note was repaid in full along with the contractually accrued interest of $0.2 million and an additional $8.5 million of promoted interest in conjunction with the unaffiliated third party being acquired. |
REAL ESTATE OWNED (Tables)
REAL ESTATE OWNED (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
REAL ESTATE OWNED | |
Summary of carrying amounts for real estate owned (at cost) | September 30, December 31, 2019 2018 Land $ 2,020,617 $ 1,849,799 Depreciable property — held and used: Land improvements 220,654 213,224 Building, improvements, and furniture, fixtures and equipment 9,260,709 8,133,136 Real estate intangible assets 40,570 — Under development: Land and land improvements 13,853 — Building, improvements, and furniture, fixtures and equipment 7,992 — Real estate owned 11,564,395 10,196,159 Accumulated depreciation (4,000,608) (3,654,160) Real estate owned, net $ 7,563,787 $ 6,541,999 |
JOINT VENTURES AND PARTNERSHI_2
JOINT VENTURES AND PARTNERSHIPS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
JOINT VENTURES AND PARTNERSHIPS | |
Schedule of unconsolidated joint ventures and partnerships | The following table summarizes the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net, which are accounted for under the equity method of accounting as of September 30, 2019 and December 31, 2018 (dollars in thousands) Number of Number of Apartment Properties Homes Investment at UDR’s Ownership Interest Location of September 30, September 30, September 30, December 31, September 30, December 31, Joint Venture Properties 2019 2019 2019 2018 2019 2018 Operating and development: UDR/MetLife I Los Angeles, CA 1 operating community 150 $ 29,599 $ 30,839 50.0 % 50.0 % UDR/MetLife II (a) Various 18 operating communities 4,059 300,479 296,807 50.0 % 50.0 % Other UDR/MetLife Various 5 operating communities 1,437 102,435 115,668 50.6 % 50.6 % Joint Ventures UDR/MetLife Vitruvian Park ® (a) Addison, TX 4 operating communities; 1,879 75,858 71,730 50.0 % 50.0 % 1 development community (b); 4 land parcels UDR/KFH (c) Washington, D.C. — — 156 5,507 — % 30.0 % West Coast Development Joint Ventures (d) Los Angeles, CA 1 operating community 293 35,165 36,143 47.0 % 47.0 % Investment in and advances to unconsolidated joint ventures, net, before participating loan investment, preferred equity investments and other investments $ 543,692 $ 556,694 Income/(loss) from investments Investment at Three Months Ended Nine Months Ended Developer Capital Program Years To UDR September 30, December 31, September 30, September 30, and Other Investments (e) Location Rate Maturity Commitment (f) 2019 2018 2019 2018 2019 2018 Preferred equity investments: West Coast Development Joint Ventures (d) Various 6.5 % N/A $ — $ 17,080 $ 65,417 $ 71 $ 25 $ (100) $ 974 1532 Harrison (g) San Francisco, CA 11.0 % 2.8 24,645 29,753 24,986 802 721 2,324 1,492 1200 Broadway (h) Nashville, TN 8.0 % 3.0 55,558 62,666 58,982 1,244 859 3,619 1,870 Junction (i) Santa Monica, CA 12.0 % 2.8 8,800 10,072 9,211 299 141 861 141 1300 Fairmount (j) Philadelphia, PA Variable 3.9 51,393 36,404 8,318 930 27 1,724 27 Essex (k) Orlando, FL 12.5 % 3.9 12,886 14,347 9,940 443 46 1,182 46 Modera Lake Merritt (l) Oakland, CA 9.0 % 4.6 27,250 17,377 — 366 — 622 — Other investments: The Portals (m) Washington, D.C. 11.0 % 1.7 38,559 46,863 43,167 1,287 1,015 3,694 2,523 Other investment ventures N/A N/A N/A $ 18,000 12,926 4,154 $ 4,247 $ (77) $ 4,272 $ (262) Total Developer Capital Program and Other Investments 247,488 224,175 Total investment in and advances to unconsolidated joint ventures, net $ 791,180 $ 780,869 (a) In August 2019, the Company entered into an agreement with MetLife, its joint venture partner, to acquire the approximately 50% ownership interest not previously owned in 10 UDR/MetLife operating communities, one development community and four land parcels valued at $1.1 billion, or $557 million at UDR’s share, and to sell its approximately 50% ownership interest in five UDR/MetLife operating communities valued at $645 million, or $323 million at UDR’s share, to MetLife. The transaction is expected to close during the fourth quarter of 2019, subject to customary closing conditions and closing price adjustments. Upon closing of the transaction, the UDR/MetLife II joint venture will hold seven operating communities and the UDR/MetLife Vitruvian Park ® joint venture will no longer hold any properties. (b) The number of apartment homes for the communities under development presented in the table above is based on the projected number of total homes upon completion of development. As of September 30, 2019, no apartment homes had been completed in the development community held by UDR/MetLife Vitruvian Park ® . (c) As of January 1, 2019, the joint venture held three operating communities. In May 2019, the joint venture sold one community, a 217 home operating community in Arlington, Virginia, for a sales price of approximately $74.8 million. As a result, the Company recorded a gain on the sale of approximately $5.3 million, which is included in Income/(loss) from unconsolidated entities In July 2019, the joint venture sold the second community, a 151 home operating community in Silver Spring, Maryland, for a sales price of approximately $43.5 million. As a result, the Company recorded a gain on the sale of approximately $5.3 million, which is included in Income/(loss) from unconsolidated entities In August 2019, the joint venture sold the third community, a 292 home operating community in Washington, D.C., directly to the Company for a sales price at 100% of approximately $184.0 million, before $2.8 million of closing costs incurred by UDR at acquisition. The Company deferred its share of the gain on sale of approximately $23.8 million and recorded it as a reduction of the carrying amount of real estate assets owned (see Note 3, Real Estate Owned (d) In 2015, the Company entered into a joint venture agreement with an unaffiliated joint venture partner and paid $136.3 million for a 48% ownership interest in a portfolio of five communities that were under construction. The communities are located in three of the Company’s core, coastal markets: Seattle, Washington, Los Angeles, California and Orange County, California. UDR earns a 6.5% preferred return on its investment through each individual community’s date of stabilization, defined as when a community reaches 80% occupancy for 90 consecutive days, while the joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization, income and expense are shared based on each partner’s ownership percentage and the Company no longer receives a 6.5% preferred return on its investment in the stabilized community. The Company serves as property manager and earns a management fee during the lease-up phase and subsequent operation of each of the communities. The unaffiliated joint venture partner is the general partner of the joint venture and the developer of the communities. The Company has concluded it does not control the joint ventures and, therefore, accounts for them under the equity method of accounting. During 2017, the Company exercised its fixed-price option to purchase the joint venture partner’s ownership interest in one of the five communities, and the joint venture sold two of the four remaining communities. In January 2019, the Company exercised its fixed-price option to purchase its joint venture partner’s ownership interest in one of the two remaining communities, a 386 apartment home operating community in Orange County, California, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $33.5 million. As a result, the Company consolidated the operating community and it is no longer accounted for as a preferred equity investment in an unconsolidated joint venture (see Note 3, Real Estate Owned The Company and its joint venture partner continue to operate the one remaining community. In 2017, the Company entered into two additional joint venture agreements with the unaffiliated joint venture partner and paid $15.5 million for a 49% ownership interest in a 155 apartment home community in Seattle, Washington and $16.1 million for a 49% ownership interest in a 276 apartment home community in Hillsboro, Oregon (together with the 2015 joint venture described above, the “West Coast Development Joint Ventures”). UDR earns a 6.5% preferred return on its investments through the communities’ date of stabilization, as defined above, while our joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization of the communities, income and expense will be shared based on each partner’s ownership percentage and the Company will no longer receive a 6.5% preferred return on its investment. The Company serves as property manager and earns a management fee during the lease-up phase and subsequent operation of the stabilized communities. The unaffiliated joint venture partner is the general partner and the developer of the communities. The Company has concluded it does not control the joint ventures and, therefore, accounts for them under the equity method of accounting. The Company has a fixed-price option to acquire the remaining interest in the communities beginning one year after completion. The unaffiliated joint venture partner is providing certain guaranties and there are construction loans on the communities. In January 2019, the Company exercised its fixed-price option to purchase its joint venture partner’s ownership interest in the 155 apartment home operating community in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $20.0 million. As a result, the Company consolidated the operating community and it is no longer accounted for as a preferred equity investment in an unconsolidated joint venture (see Note 3, Real Estate Owned The Company’s recorded equity investment in the West Coast Development Joint Ventures at September 30, 2019 and December 31, 2018, of $52.2 million and $101.6 million, respectively, is inclusive of outside basis costs and our accrued but unpaid preferred return. (e) The Developer Capital Program is a program through which the Company makes investments, including preferred equity investments, mezzanine loans or other structured investments that may receive a fixed or variable yield on the investment and may include provisions pursuant to which the Company participates in the increase in value of the property upon monetization of the applicable property and/or holds fixed price purchase options. (f) Represents UDR’s maximum funding commitment only and therefore excludes other activity such as income from investments. (g) In June 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 136 apartment home community in San Francisco, California. The Company’s preferred equity investment of up to $24.6 million earns a preferred return of 11.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (h) In September 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 313 apartment home community in Nashville, Tennessee. The Company’s preferred equity investment of up to $55.6 million earns a preferred return of 8.0% per annum and receives a variable percentage of the value created from the project upon a capital or liquidating event. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (i) In August 2018, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 66 apartment home community in Santa Monica, CA. The Company’s preferred equity investment of $8.8 million earns a preferred return of 12.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (j) In August 2018, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 471 apartment home community in Philadelphia, PA. The Company’s preferred equity investment of up to $51.4 million earns a preferred return between 8.5% and 12.0% per annum and receives a variable percentage of the value created from the project upon a capital or liquidating event. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (k) In September 2018, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 330 apartment home community in Orlando, FL. The Company’s preferred equity investment of up to $12.9 million earns a preferred return of 12.5% per annum. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (l) In April 2019, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 173 apartment home community in Oakland, CA. The Company’s preferred equity investment of up to $27.3 million earns a preferred return of 9.0% per annum and receives a variable percentage of the value created from the project upon a capital or liquidating event. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting . (m) In May 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner. The joint venture has made a mezzanine loan to a third party developer of a 373 apartment home community in Washington, D.C. The unaffiliated joint venture partner is the managing member of the joint venture. The mezzanine loan is for up to $71.0 million at an interest rate of 13.5% per annum and carries a term of four years with one 12-month extension option. The Company’s commitment to the joint venture is approximately $38.6 million and earns a weighted average return of approximately 11.0% per annum. The Company has concluded that it does not control the joint venture and , therefore, accounts for it under the equity method of accounting. |
Combined summary of balance sheets relating to unconsolidated joint ventures and partnerships | Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of September 30, 2019 and December 31, 2018 ( dollars in thousands September 30, December 31, 2019 2018 Total real estate, net $ 3,101,213 $ 3,311,034 Cash and cash equivalents 56,829 49,867 Other assets 165,767 124,428 Total assets $ 3,323,809 $ 3,485,329 Third party debt, net $ 1,909,223 $ 2,125,350 Accounts payable and accrued liabilities 73,803 71,272 Total liabilities 1,983,026 2,196,622 Total equity $ 1,340,783 $ 1,288,707 |
Schedule of combined financial information relating to unconsolidated joint ventures and partnerships operations (not just proportionate share) | Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three and nine months ended September 30, 2019 and 2018 ( dollars in thousands : Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total revenues $ 75,378 $ 76,203 $ 233,836 $ 215,140 Property operating expenses 27,505 30,096 87,073 85,435 Real estate depreciation and amortization 26,027 29,545 83,661 85,063 Operating income/(loss) 21,846 16,562 63,102 44,642 Interest expense (20,779) (22,919) (64,309) (63,990) Gain/(loss) on sale of property (a) 97,201 — 115,558 — Net unrealized gain/(loss) on held investments 25,669 — 27,191 — Other income/(loss) 82 40 194 141 Net income/(loss) $ 124,019 $ (6,317) $ 141,736 $ (19,207) (a) Represent the gains on the sale of three operating communities at the UDR/KFH joint venture level, as described in note (c) to the table above summarizing the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
LEASES | |
Lessee - Future minimum lease payments and total operating lease liabilities | Future minimum lease payments and total operating lease liabilities from our ground leases and office space as of September 30, 2019 are as follows (dollars in thousands): Ground Leases Office Space Total 2019 $ 1,953 $ 19 $ 1,972 2020 7,813 76 7,889 2021 7,813 32 7,845 2022 7,813 - 7,813 2023 7,813 - 7,813 Thereafter 370,467 - 370,467 Total future minimum lease payments (undiscounted) 403,672 127 403,799 Difference between future undiscounted cash flows and discounted cash flows (273,659) (5) (273,664) Total operating lease liabilities (discounted) $ 130,013 $ 122 $ 130,135 |
Lessee - components of operating lease expenses | The components of operating lease expenses from our ground leases and office space were as follows (dollars in thousands) Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Ground lease expense: Contractual lease rent expense $ 1,954 $ 6,232 Variable ground lease expense (a) 187 469 Total ground lease expense (b) 2,141 6,701 Contractual office space expense (b) 19 57 Total operating lease expense (c) $ 2,160 $ 6,758 (a) Variable ground lease expense includes adjustments such as changes in the consumer price index and payments based on a percentage of income of the lessee. (b) Ground lease expense is reported within the line item Other operating expenses and office space expense is recorded in General and administrative on the Consolidated Statements of Operations. (c) For the nine months ended September 30, 2019, Operating lease right-of-use assets and Operating lease liabilities amortized by $0.6 million and $0.3 million, respectively. The Company recorded $0.1 million and $0.3 million of total operating lease expense during the three and nine months ended September 30, 2019, respectively, due to the net impact of the amortization. |
Lessor - Future minimum lease payments | Future minimum lease payments from our retail and commercial leases as of September 30, 2019 are as follows (dollars in thousands): Retail and Commercial Leases 2019 $ 4,958 2020 20,565 2021 19,788 2022 18,094 2023 16,843 Thereafter 92,719 Total future minimum lease payments (a) $ 172,967 (a) We have excluded our apartment home leases from this table as our apartment home leases generally have initial terms of 12 months of less. |
SECURED AND UNSECURED DEBT, N_2
SECURED AND UNSECURED DEBT, NET (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Unsecured Debt | |
Schedule of debt instruments | The following is a summary of our secured and unsecured debt at September 30, 2019 and December 31, 2018 ( dollars in thousands Principal Outstanding As of September 30, 2019 Weighted Weighted Average Average Number of September 30, December 31, Interest Years to Communities 2019 2018 Rate Maturity Encumbered Secured Debt: Fixed Rate Debt Mortgage notes payable (a) $ 575,965 $ 417,989 3.55 % 6.6 9 Fannie Mae credit facilities (b) — 90,000 — % — — Deferred financing costs (2,275) (1,343) Total fixed rate secured debt, net 573,690 506,646 3.55 % 6.6 9 Variable Rate Debt Tax-exempt secured notes payable (c) 27,000 94,700 2.07 % 12.5 1 Deferred financing costs (66) (119) Total variable rate secured debt, net 26,934 94,581 2.07 % 12.5 1 Total Secured Debt, net 600,624 601,227 3.49 % 6.8 10 Unsecured Debt: Variable Rate Debt Borrowings outstanding under unsecured credit facility due January 2023 (d) (l) — — — % 3.3 Borrowings outstanding under unsecured commercial paper program due October 2019 (e) (l) 60,000 101,115 2.28 % 0.1 Borrowings outstanding under unsecured working capital credit facility due January 2021 34,447 16 2.84 % 1.3 Term Loan due September 2023 (d) (l) 35,000 35,000 3.01 % 4.0 Fixed Rate Debt 3.70% Medium-Term Notes due October 2020 (net of discounts of $0 and $14, respectively) (k) (l) — 299,986 — % — 4.63% Medium-Term Notes due January 2022 (net of discounts of $818 and $1,087, respectively) (l) 399,182 398,913 4.63 % 2.3 1.93% Term Loan due September 2023 (d) (l) 315,000 315,000 1.93 % 4.0 3.75% Medium-Term Notes due July 2024 (net of discounts of $495 and $574, respectively) (g) (l) 299,505 299,426 3.75 % 4.8 8.50% Debentures due September 2024 15,644 15,644 8.50 % 5.0 4.00% Medium-Term Notes due October 2025 (net of discounts of $413 and $465, respectively) (h) (l) 299,587 299,535 4.00 % 6.0 2.95% Medium-Term Notes due September 2026 (l) 300,000 300,000 2.95 % 6.9 3.50% Medium-Term Notes due July 2027 (net of discounts of $547 and $600, respectively) (l) 299,453 299,400 3.50 % 7.8 3.50% Medium-Term Notes due January 2028 (net of discounts of $983 and $1,072, respectively) (l) 299,017 298,928 3.50 % 8.3 4.40% Medium-Term Notes due January 2029 (net of discounts of $6 and $6, respectively) (i) (l) 299,994 299,994 4.40 % 9.3 3.20% Medium-Term Notes due January 2030 (net of discounts of $990 and $0, respectively) (j) (l) 299,010 — 3.20 % 10.3 3.00% Medium-Term Notes due August 2031 (net of discounts of $1,148 and $0, respectively) (k) (l) 398,852 — 3.00 % 11.9 Other 14 16 Deferred financing costs (19,432) (16,413) Total Unsecured Debt, net 3,335,273 2,946,560 3.54 % 6.9 Total Debt, net $ 3,935,897 $ 3,547,787 3.63 % 6.9 |
Secured credit facilities | Further information related to the Fannie Mae credit facility is as follows (dollars in thousands) September 30, December 31, 2019 2018 Borrowings outstanding $ — $ 90,000 Weighted average borrowings during the period ended 80,000 253,813 Maximum daily borrowings during the period ended 90,000 314,869 Weighted average interest rate during the period ended 4.0 % 4.7 % Weighted average interest rate at the end of the period — % 4.0 % (c) (d) six-month extension options, subject to certain conditions. The Term Loan has a scheduled maturity date of September 30, 2023. |
Schedule of aggregate maturities, including amortizing principal payments of secured and unsecured debt | The aggregate maturities, including amortizing principal payments on secured and unsecured debt, of total debt for the next ten calendar years subsequent to September 30, 2019 are as follows (dollars in thousands): Total Fixed Total Variable Total Total Total Year Secured Debt Secured Debt Secured Debt Unsecured Debt Debt 2019 $ 974 $ — $ 974 $ 60,000 $ 60,974 2020 108,077 — 108,077 — 108,077 2021 1,117 — 1,117 34,447 35,564 2022 1,157 — 1,157 400,000 401,157 2023 41,245 — 41,245 350,000 391,245 2024 — — — 315,644 315,644 2025 127,600 — 127,600 300,000 427,600 2026 50,000 — 50,000 300,000 350,000 2027 — — — 300,000 300,000 2028 80,000 — 80,000 300,000 380,000 Thereafter 162,500 27,000 189,500 1,000,000 1,189,500 Subtotal 572,670 27,000 599,670 3,360,091 3,959,761 Non-cash (a) 1,020 (66) 954 (24,818) (23,864) Total $ 573,690 $ 26,934 $ 600,624 $ 3,335,273 $ 3,935,897 (a) Includes the unamortized balance of fair market value adjustments, premiums/discounts and deferred financing costs . The Company amortized $1.1 million and $ 1.1 million, respectively, during the three months ended September 30, 2019 and 2018, and $3.1 million and $3.2 million, respectively, during the nine months ended September 30, 2019 and 2018, of deferred financing costs into Interest expense. |
Commercial Paper | |
Unsecured Debt | |
Schedule of short-term debt | The following is a summary of short-term bank borrowings under the unsecured commercial paper program at September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, December 31, 2019 2018 Total unsecured commercial paper program $ 500,000 $ 500,000 Borrowings outstanding at end of period 60,000 101,115 Weighted average daily borrowings during the period ended 163,347 344,235 Maximum daily borrowings during the period ended 435,000 440,000 Weighted average interest rate during the period ended 2.7 % 2.4 % Interest rate at end of the period 2.3 % 2.9 % |
Revolving Credit Facility | |
Unsecured Debt | |
Schedule of short-term debt | The following is a summary of short-term bank borrowings under the Revolving Credit Facility at September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, December 31, 2019 2018 Total revolving credit facility $ 1,100,000 $ 1,100,000 Borrowings outstanding at end of period (1) — — Weighted average daily borrowings during the period ended — — Maximum daily borrowings during the period ended — — Weighted average interest rate during the period ended — % — % Interest rate at end of the period — % — % (1) Excludes $2.8 million and $3.3 million of letters of credit at September 30, 2019 and December 31, 2018, respectively. (e) |
Unsecured Working Capital Credit Facility due January 2021 | |
Unsecured Debt | |
Schedule of short-term debt | The following is a summary of short-term bank borrowings under the Working Capital Credit Facility at September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, December 31, 2019 2018 Total working capital credit facility $ 75,000 $ 75,000 Borrowings outstanding at end of period 34,447 16 Weighted average daily borrowings during the period ended 24,870 26,101 Maximum daily borrowings during the period ended 66,170 64,633 Weighted average interest rate during the period ended 3.2 % 2.9 % Interest rate at end of the period 2.8 % 3.3 % |
INCOME_(LOSS) PER SHARE (Tables
INCOME/(LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
INCOME/(LOSS) PER SHARE | |
Computation of basic and diluted income/(loss) per share | The following table sets forth the computation of basic and diluted income/(loss) per share for the periods presented (dollars and shares in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Numerator for income/(loss) per share: Net income/(loss) $ 29,422 $ 20,258 $ 94,342 $ 131,927 Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (2,162) (1,616) (6,871) (10,819) Net (income)/loss attributable to noncontrolling interests (56) (32) (145) (141) Net income/(loss) attributable to UDR, Inc. 27,204 18,610 87,326 120,967 Distributions to preferred stockholders — Series E (Convertible) (1,031) (971) (3,073) (2,897) Income/(loss) attributable to common stockholders - basic and diluted $ 26,173 $ 17,639 $ 84,253 $ 118,070 Denominator for income/(loss) per share: Weighted average common shares outstanding 288,957 268,034 282,866 267,873 Non-vested restricted stock awards (251) (307) (268) (344) Denominator for basic income/(loss) per share 288,706 267,727 282,598 267,529 Incremental shares issuable from assumed conversion of stock options, unvested LTIP Units, unvested restricted stock, and shares issuable upon settlement of forward sales agreements 823 1,134 694 1,491 Denominator for diluted income/(loss) per share 289,529 268,861 283,292 269,020 Income/(loss) per weighted average common share: Basic $ 0.09 $ 0.07 $ 0.30 $ 0.44 Diluted $ 0.09 $ 0.07 $ 0.30 $ 0.44 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table sets forth the additional shares of common stock outstanding by equity instrument if converted to common stock for each of the three and nine months ended September 30, 2019 and 2018 (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 OP/DownREIT Units 22,211 24,558 23,068 24,546 Convertible preferred stock 3,011 3,011 3,011 3,011 Stock options, unvested LTIP Units, unvested restricted stock, and forward sales shares 823 1,134 694 1,491 |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
NONCONTROLLING INTERESTS | |
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | The following table sets forth redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership for the following period ( dollars in thousands Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, December 31, 2018 $ 972,740 Mark-to-market adjustment to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership 222,405 Conversion of OP Units/DownREIT Units to Common Stock (119,338) Net income/(loss) attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership 6,871 Distributions to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (24,509) Vesting of Long-Term Incentive Plan Units 14,742 Allocation of other comprehensive income/(loss) (730) Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, September 30, 2019 $ 1,072,181 |
FAIR VALUE OF DERIVATIVES AND_2
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | |
Schedule of estimated fair values | The estimated fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis as of September 30, 2019 and December 31, 2018, are summarized as follows (dollars in thousands) Fair Value at September 30, 2019, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable September 30, September 30, Liabilities Inputs Inputs 2019 2019 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 37,899 $ 42,613 $ — $ — $ 42,613 Derivatives - Interest rate contracts (b) 730 730 — 730 — Total assets $ 38,629 $ 43,343 $ — $ 730 $ 42,613 Derivatives - Interest rate contracts (b) $ 469 $ 469 $ — $ 469 $ — Secured debt instruments - fixed rate: (c) Mortgage notes payable 575,965 569,318 — — 569,318 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 27,000 27,000 — — 27,000 Unsecured debt instruments: (c) Working capital credit facility 34,447 34,447 — — 34,447 Commercial paper program 60,000 60,000 — — 60,000 Unsecured notes 3,260,258 3,415,618 — — 3,415,618 Total liabilities $ 3,958,139 $ 4,106,852 $ — $ 469 $ 4,106,383 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 1,072,181 $ 1,072,181 $ — $ 1,072,181 $ — Fair Value at December 31, 2018, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable December 31, December 31, Liabilities Inputs Inputs 2018 2018 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 42,259 $ 45,026 $ — $ — $ 45,026 Derivatives - Interest rate contracts (b) 4,757 4,757 — 4,757 — Total assets $ 47,016 $ 49,783 $ — $ 4,757 $ 45,026 Derivatives - Interest rate contracts (b) $ 356 $ 356 $ — $ 356 $ — Secured debt instruments - fixed rate: (c) Mortgage notes payable 417,989 416,314 — — 416,314 Fannie Mae credit facility 90,000 90,213 — — 90,213 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 94,700 94,700 — — 94,700 Unsecured debt instruments: (c) Working capital credit facility 16 16 — — 16 Commercial paper program 101,115 101,115 — — 101,115 Unsecured notes 2,861,842 2,829,390 — — 2,829,390 Total liabilities $ 3,566,018 $ 3,532,104 $ — $ 356 $ 3,531,748 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 972,740 $ 972,740 $ — $ 972,740 $ — (a) See Note 2, Significant Accounting Policies . (b) See Note 11, Derivatives and Hedging Activity . (c) See Note 7, Secured and Unsecured Debt, Net . (d) See Note 9, Noncontrolling Interests. |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITY (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
DERIVATIVES AND HEDGING ACTIVITY | |
Schedule of outstanding interest rate derivatives | As of September 30, 2019, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk ( dollars in thousands Number of Product Instruments Notional Interest rate swaps (a) 4 $ 315,000 (a) In addition to the interest rate swaps summarized above, the Company entered into an additional interest rate swap with a notional value of $315.0 million that will become effective in January 2020 upon the maturity of the interest rate swaps summarized above. Additionally, the Company had previously entered into two additional interest rate swaps with a notional value totaling $75.0 million that were subsequently terminated and settled during the nine months ended September 30, 2019 in conjunction with the July 2019 issuance of $300.0 million of senior unsecured medium-term notes as disclosed in Note 7, Secured and Unsecured, Net Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in no gain or loss for both the three and nine months ended September 30, 2019 and 2018. As of September 30, 2019, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships ( dollars in thousands Number of Product Instruments Notional Interest rate caps 1 $ 19,880 |
Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheets | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 ( dollars in thousands Asset Derivatives Liability Derivatives (included in Other assets ) (included in Other liabilities ) Fair Value at: Fair Value at: September 30, December 31, September 30, December 31, 2019 2018 2019 2018 Derivatives designated as hedging instruments: Interest rate products $ 730 $ 4,757 $ 469 $ 356 |
Effect of Company's derivative financial instruments on Consolidated Statements of Operations | The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018 ( dollars in thousands Gain/(Loss) Recognized in Gain/(Loss) Reclassified Interest expense Unrealized holding gain/(loss) from Accumulated OCI into (Amount Excluded from Recognized in OCI Interest expense Effectiveness Testing) Derivatives in Cash Flow Hedging Relationships 2019 2018 2019 2018 2019 2018 Three Months Ended September 30, Interest rate products $ (659) $ 2,320 $ 624 $ 564 $ — $ — Nine Months Ended September 30, Interest rate products $ (7,181) $ 4,312 $ 2,504 $ 1,162 $ — $ — |
Effect of Company's derivatives not designated as hedging instruments on the Consolidated Statements of Operations | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total amount of Interest expense $ 42,523 $ 34,401 $ 110,482 $ 95,942 |
Offsetting of Derivative Assets | The Company has elected not to offset derivative positions on the consolidated financial statements. The tables below present the effect on its financial position had the Company made the election to offset its derivative positions as of September 30, 2019 and December 31, 2018 (dollars in thousands): Gross Net Amounts of Gross Amounts Not Offset Amounts Assets in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Assets Assets Sheets (a) Instruments Received Net Amount September 30, 2019 $ 730 $ — $ 730 $ (371) $ — $ 359 December 31, 2018 $ 4,757 $ — $ 4,757 $ — $ — $ 4,757 (a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
Offsetting of Derivative Liabilities | Gross Net Amounts of Gross Amounts Not Offset Amounts Liabilities in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Liabilities Liabilities Sheets (a) Instruments Posted Net Amount September 30, 2019 $ 469 $ — $ 469 $ (371) $ — $ 98 December 31, 2018 $ 356 $ — $ 356 $ — $ — $ 356 (a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
Summary of real estate commitments | The following summarizes the Company’s real estate commitments at September 30, 2019 ( dollars in thousands Number UDR's UDR's Remaining Properties Investment (a) Commitment Wholly-owned — under development 1 $ 21,845 $ 75,655 Wholly-owned — redevelopment 2 11,582 23,918 Joint ventures: Unconsolidated joint ventures - development 1 14,402 21,496 (b) Preferred equity investments 2 53,781 (c) 27,390 (d) Other investments - 12,926 9,000 (e) Total $ 114,536 $ 157,459 (a) Represents UDR’s investment as of September 30, 2019. (b) Represents UDR’s proportionate share of expected remaining costs to complete the development. (c) Represents UDR’s investment in 1300 Fairmount and Modera Lake Merritt for the properties under development as of September 30, 2019. (d) Represents UDR’s remaining commitment for 1300 Fairmount and Modera Lake Merritt. (e) Represents UDR’s remaining commitment for other investment ventures. |
REPORTABLE SEGMENTS (Tables)
REPORTABLE SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
REPORTABLE SEGMENTS | |
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to Net income/(loss) | The following table details rental income and NOI for UDR’s reportable segments for the three and nine months ended September 30, 2019 and 2018, and reconciles NOI to Net income/(loss) attributable to UDR, Inc. (dollars in thousands) Three Months Ended Nine Months Ended September 30, (a) September 30, (b) 2019 2018 2019 2018 Reportable apartment home segment lease revenue Same-Store Communities West Region $ 99,316 $ 95,447 $ 293,294 $ 281,722 Mid-Atlantic Region 52,826 51,291 157,179 152,867 Southeast Region 28,540 27,773 84,551 81,554 Northeast Region 30,196 29,491 89,650 87,776 Southwest Region 15,451 15,060 40,705 39,586 Non-Mature Communities/Other 40,975 24,237 106,499 66,906 Total segment and consolidated rental income $ 267,304 $ 243,299 $ 771,878 $ 710,411 Reportable apartment home segment other revenue Same-Store Communities West Region $ 7,869 $ 7,168 $ 23,488 $ 21,567 Mid-Atlantic Region 4,376 4,032 12,958 11,944 Southeast Region 3,438 3,211 10,423 9,918 Northeast Region 1,321 1,226 3,753 3,422 Southwest Region 1,527 1,525 4,100 3,986 Non-Mature Communities/Other 3,173 2,795 8,793 9,125 Total segment and consolidated rental income $ 21,704 $ 19,957 $ 63,515 $ 59,962 Total reportable apartment home segment rental income Same-Store Communities West Region $ 107,185 $ 102,615 $ 316,782 $ 303,289 Mid-Atlantic Region 57,202 55,323 170,137 164,811 Southeast Region 31,978 30,984 94,974 91,472 Northeast Region 31,517 30,717 93,403 91,198 Southwest Region 16,978 16,585 44,805 43,572 Non-Mature Communities/Other 44,148 27,032 115,292 76,031 Total segment and consolidated rental income $ 289,008 $ 263,256 $ 835,393 $ 770,373 Reportable apartment home segment NOI Same-Store Communities West Region $ 81,170 $ 77,321 $ 240,442 $ 229,129 Mid-Atlantic Region 39,850 38,220 119,075 114,465 Southeast Region 22,133 21,597 66,301 63,806 Northeast Region 20,560 20,640 63,012 62,710 Southwest Region 10,449 9,899 26,995 25,760 Non-Mature Communities/Other 29,487 17,137 77,242 48,833 Total segment and consolidated NOI 203,649 184,814 593,067 544,703 Reconciling items: Joint venture management and other fees 6,386 2,888 11,982 8,819 Property management (8,309) (7,240) (24,018) (21,185) Other operating expenses (2,751) (3,314) (11,132) (8,148) Real estate depreciation and amortization (127,391) (107,881) (357,793) (322,537) General and administrative (12,197) (11,896) (37,002) (36,028) Casualty-related (charges)/recoveries, net 1,088 (678) 842 (2,364) Other depreciation and amortization (1,619) (1,682) (4,953) (5,057) Gain/(loss) on sale of real estate owned — — 5,282 70,300 Income/(loss) from unconsolidated entities 12,713 (1,382) 19,387 (5,091) Interest expense (42,523) (34,401) (110,482) (95,942) Interest income and other income/(expense), net 1,875 1,188 12,998 5,075 Tax (provision)/benefit, net (1,499) (158) (3,836) (618) Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (2,162) (1,616) (6,871) (10,819) Net (income)/loss attributable to noncontrolling interests (56) (32) (145) (141) Net income/(loss) attributable to UDR, Inc. $ 27,204 $ 18,610 $ 87,326 $ 120,967 (a) Same-Store Community population consisted of 38,177 apartment homes. (b) Same-Store Community population consisted of 37,959 apartment homes. |
Details of assets of UDR's reportable segments | The following table details the assets of UDR’s reportable segments as of September 30, 2019 and December 31, 2018 (dollars in thousands) September 30, December 31, 2019 2018 Reportable apartment home segment assets: Same-Store Communities (a): West Region $ 3,797,149 $ 3,763,366 Mid-Atlantic Region 2,338,963 2,317,369 Southeast Region 799,739 779,310 Northeast Region 1,498,500 1,491,994 Southwest Region 595,982 589,188 Non-Mature Communities/Other 2,534,062 1,254,932 Total segment assets 11,564,395 10,196,159 Accumulated depreciation (4,000,608) (3,654,160) Total segment assets — net book value 7,563,787 6,541,999 Reconciling items: Cash and cash equivalents 1,895 185,216 Restricted cash 21,646 23,675 Notes receivable, net 37,899 42,259 Investment in and advances to unconsolidated joint ventures, net 791,180 780,869 Operating lease right-of-use assets 135,889 — Other assets 145,301 137,710 Total consolidated assets $ 8,697,597 $ 7,711,728 (a) Same-Store Community population consisted of 38,177 apartment homes. |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - shares | Sep. 30, 2019 | Dec. 31, 2018 |
Consolidation And Basis Of Presentation | ||
Operating Partnership units outstanding related to limited partner | 184,063,542 | 183,636,543 |
Operating Partnership outstanding units | 184,063,542 | |
United Dominion Realty L.P. | ||
Consolidation And Basis Of Presentation | ||
Operating Partnership units outstanding related to limited partner | 176,210,072 | |
General Partners' ownership (as a percent) | 95.70% | |
UDR Lighthouse DownREIT L.P. | ||
Consolidation And Basis Of Presentation | ||
Operating Partnership outstanding units | 13,470,651 | |
Percentage of units outstanding in Partnership | 41.60% | |
UDR Lighthouse DownREIT L.P. | ||
Consolidation And Basis Of Presentation | ||
Operating Partnership outstanding units | 32,367,380 | |
Non-affiliated Partners | ||
Consolidation And Basis Of Presentation | ||
Operating Partnership units outstanding related to limited partner | 7,853,470 | |
Operating Partnership outstanding units | 14,262,485 | |
Percentage of units outstanding in Partnership | 4.30% | |
Non-affiliated Partners | United Dominion Realty L.P. | ||
Consolidation And Basis Of Presentation | ||
Operating Partnership units outstanding related to limited partner | 7,853,470 | |
Operating Partnership outstanding units | 9,387,844 | |
Percentage of units outstanding in Partnership | 4.30% | 5.10% |
Non-affiliated Partners | UDR Lighthouse DownREIT L.P. | ||
Consolidation And Basis Of Presentation | ||
Percentage of units outstanding in Partnership | 44.10% | |
UDR, Inc. | ||
Consolidation And Basis Of Presentation | ||
Operating Partnership units outstanding related to limited partner | 176,099,189 | 174,137,816 |
General Partners' ownership (as a percent) | 55.90% | |
Operating Partnership outstanding units | 18,104,895 | |
Percentage of units outstanding in Partnership | 95.70% | 94.90% |
UDR, Inc. | United Dominion Realty L.P. | ||
Consolidation And Basis Of Presentation | ||
General Partners' ownership (as a percent) | 95.70% | |
Operating Partnership outstanding units | 174,248,699 | |
Percentage of units outstanding in Partnership | 94.90% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jan. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Accounting policies | ||||||||
Notes receivable, net | $ 37,899 | $ 37,899 | $ 42,259 | |||||
Significant Accounting Policies | ||||||||
Lease classification per practical expedient | true | |||||||
Operating lease right-of-use assets | 135,889 | $ 135,889 | ||||||
Operating lease liabilities | 130,135 | 130,135 | ||||||
Recognition of operating lease right-of-use assets | 94,349 | |||||||
Increase in operating lease liabilities | 42,100 | |||||||
Increase in operating lease liabilities | 88,336 | |||||||
Proceeds from secured notes receivable | $ 5,600 | |||||||
Procceds from accrued interest | 200 | |||||||
Note receivable interest income | 1,200 | $ 1,200 | 3,500 | $ 2,900 | ||||
Promoted interest received | $ 8,500 | 8,500 | 0 | |||||
Allocation of other comprehensive income/(loss) | (730) | |||||||
Current Income Tax Expense (Benefit) | 0 | |||||||
Deferred tax liabilities, net | (1,300) | (1,300) | ||||||
Unrecognized tax benefit, accrued interest or penalties due to examination | 0 | 0 | ||||||
Interest Income, Related Party | 0 | 0 | ||||||
Noncontrolling Interests | ||||||||
Significant Accounting Policies | ||||||||
Allocation of other comprehensive income/(loss) | $ (100) | $ 200 | $ (700) | $ 300 | ||||
Note due December 2019 | ||||||||
Accounting policies | ||||||||
Note receivable interest rate | 12.00% | 12.00% | ||||||
Notes receivable, net | $ 20,000 | $ 20,000 | 20,000 | |||||
Significant Accounting Policies | ||||||||
Notes receivable | $ 20,000 | |||||||
Note due February 2020 | ||||||||
Accounting policies | ||||||||
Note receivable interest rate | 10.00% | 10.00% | ||||||
Notes receivable, net | $ 15,649 | $ 15,649 | 14,659 | |||||
Significant Accounting Policies | ||||||||
Notes receivable | $ 16,400 | 16,400 | ||||||
Note maturity public capital threshold | 5,000 | |||||||
Additional amount loaned | $ 1,000 | |||||||
Note due October 2020 | ||||||||
Accounting policies | ||||||||
Note receivable interest rate | 8.00% | 8.00% | ||||||
Notes receivable, net | $ 2,250 | $ 2,250 | 2,000 | |||||
Significant Accounting Policies | ||||||||
Notes receivable | $ 2,300 | 2,300 | ||||||
Note maturity public capital threshold | 10,000 | |||||||
Additional amount loaned | $ 300 | |||||||
Note due August 2022 | ||||||||
Accounting policies | ||||||||
Note receivable interest rate | 10.00% | 10.00% | ||||||
Notes receivable, net | 5,600 | |||||||
Maximum | ||||||||
Significant Accounting Policies | ||||||||
Deferred tax liabilities, net | (100) | |||||||
ASU 2016-02 | Adjustment | ||||||||
Significant Accounting Policies | ||||||||
Operating lease right-of-use assets | $ 94,300 | |||||||
Operating lease liabilities | $ 88,300 | |||||||
Prepaid rent and intangible assets | $ 6,000 |
REAL ESTATE OWNED - Summarizes
REAL ESTATE OWNED - Summarizes the carrying amounts for our real estate owned (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Real estate owned | ||
Land | $ 2,020,617 | $ 1,849,799 |
Depreciable property - held and used: | ||
Land improvements | 220,654 | 213,224 |
Building, improvements, and furniture, fixtures and equipment | 9,260,709 | 8,133,136 |
In-place intangibles | 40,570 | |
Under development: | ||
Real estate under development | 21,845 | |
Real estate owned | 11,564,395 | 10,196,159 |
Accumulated depreciation | (4,000,608) | (3,654,160) |
Total real estate owned, net of accumulated depreciation | 7,563,787 | $ 6,541,999 |
Ground Leases | ||
Under development: | ||
Real estate under development | 13,853 | |
Construction in progress | ||
Under development: | ||
Real estate under development | $ 7,992 |
REAL ESTATE OWNED - Additional
REAL ESTATE OWNED - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Aug. 31, 2019USD ($)homecommunityitem | Jun. 30, 2019USD ($)home | May 31, 2019USD ($)home | Apr. 30, 2019USD ($)home | Feb. 28, 2019USD ($)home | Jan. 31, 2019USD ($)item | Sep. 30, 2019USD ($)communityitemstate | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)communityitemstate | Sep. 30, 2018USD ($) | Jul. 31, 2019 | Dec. 31, 2018 | |
Real Estate Owned Disclosure | ||||||||||||
Number of real estate properties | community | 138 | 138 | ||||||||||
Number of states in which there are owned and consolidated communities | state | 13 | 13 | ||||||||||
Number of apartment homes owned and consolidated | item | 43,683 | 43,683 | ||||||||||
Development costs excluding direct costs and capitalized interest | $ 1,900 | $ 1,600 | $ 6,900 | $ 6,600 | ||||||||
Interest capitalized during period | 1,400 | $ 1,600 | 3,800 | $ 9,800 | ||||||||
In-place intangibles | $ 40,570 | $ 40,570 | ||||||||||
Ground Leases | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Proceeds from sale of real estate | $ 38,000 | |||||||||||
Gain on sale of real estate owned | $ 5,300 | |||||||||||
386 Home Operating Community In Anaheim | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Number of apartment homes acquired | item | 386 | |||||||||||
Ownership (as a percent) | 100.00% | 49.00% | ||||||||||
Payment to acquire real estate | $ 33,500 | |||||||||||
Repayments of joint venture construction financing | 59,800 | |||||||||||
Real estate acquired | 115,700 | |||||||||||
In-place intangibles | 2,400 | |||||||||||
Gain on consolidation | $ 0 | |||||||||||
155 Home Operating Community in Seattle | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Number of apartment homes acquired | item | 155 | |||||||||||
Ownership (as a percent) | 100.00% | 49.00% | ||||||||||
Real estate intangibles | $ 2,400 | |||||||||||
Payment to acquire real estate | 20,000 | |||||||||||
Repayments of joint venture construction financing | 26,000 | |||||||||||
Real estate acquired | 58,100 | |||||||||||
In-place intangibles | 600 | |||||||||||
Gain on consolidation | 0 | |||||||||||
To-Be-Developed Parcel of Land in Washington D.C | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Payment to acquire real estate | $ 27,100 | |||||||||||
To Be Developed Parcel Of Land In Denver, Colorado | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Payment to acquire real estate | $ 13,700 | |||||||||||
Operating Community in Brooklyn, New York | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Number of apartment homes acquired | home | 188 | |||||||||||
Real estate intangibles | $ 33,600 | |||||||||||
Payment to acquire real estate | 132,100 | |||||||||||
Real estate acquired | 97,500 | |||||||||||
In-place intangibles | $ 1,000 | |||||||||||
Operating Community in St. Petersburg, Florida | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Number of apartment homes acquired | home | 240 | 381 | ||||||||||
Payment to acquire real estate | $ 49,400 | $ 98,300 | ||||||||||
Real estate acquired | 48,200 | 96,000 | ||||||||||
In-place intangibles | $ 1,200 | $ 2,300 | ||||||||||
Operating Community in Towson, Maryland | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Number of apartment homes acquired | home | 498 | |||||||||||
Payment to acquire real estate | $ 86,400 | |||||||||||
Real estate acquired | 82,500 | |||||||||||
In-place intangibles | $ 3,900 | |||||||||||
Operating Community in King of Prussia, Pennsylvania | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Number of apartment homes acquired | home | 313 | |||||||||||
Payment to acquire real estate | $ 107,300 | |||||||||||
Real estate acquired | 106,400 | |||||||||||
In-place intangibles | $ 900 | |||||||||||
Operating Community in Waltham, Massachusetts | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Number of apartment homes acquired | home | 200 | |||||||||||
Payment to acquire real estate | $ 84,600 | |||||||||||
Real estate acquired | 82,600 | |||||||||||
In-place intangibles | $ 2,000 | |||||||||||
Operating Community in Norwood, Massachusetts | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Number of apartment homes acquired | home | 914 | |||||||||||
Payment to acquire real estate | $ 270,200 | |||||||||||
Real estate acquired | 260,100 | |||||||||||
In-place intangibles | $ 10,100 | |||||||||||
Operating Community in Englewood, New Jersey | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Number of apartment homes acquired | home | 185 | |||||||||||
Real estate intangibles | $ 4,600 | |||||||||||
Payment to acquire real estate | 83,600 | |||||||||||
Real estate acquired | 77,500 | |||||||||||
In-place intangibles | $ 1,500 | |||||||||||
Unconsolidated Joint Venture Three Washington DC | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Number of apartment homes owned and consolidated | home | 292 | |||||||||||
Ownership (as a percent) | 100.00% | 30.00% | ||||||||||
Cash purchase price ( as a percent) | 100.00% | |||||||||||
Distributions received | $ 22,900 | |||||||||||
Gain or loss on consolidation | 0 | |||||||||||
Acquisition-related costs | 2,800 | |||||||||||
Payment to acquire real estate | 184,000 | |||||||||||
Acquisition-related costs | 2,800 | |||||||||||
Real estate acquired | 156,000 | |||||||||||
In-place intangibles | $ 5,900 | |||||||||||
UDR/MetLife operating communities | ||||||||||||
Real Estate Owned Disclosure | ||||||||||||
Ownership (as a percent) | 50.00% | |||||||||||
Number of communities acquired | community | 10 | |||||||||||
Number of communities under development purchased | community | 1 | |||||||||||
Number of land parcels | item | 4 | |||||||||||
Value of joint venture | $ 1,100,000 | |||||||||||
Value of joint venture UDR's share | $ 557,000 |
JOINT VENTURES AND PARTNERSHI_3
JOINT VENTURES AND PARTNERSHIPS - Summary (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2019USD ($)homecommunityproperty | Sep. 30, 2018USD ($)item | Sep. 30, 2019USD ($)homecommunityproperty | Sep. 30, 2018USD ($)item | Aug. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019community | Dec. 31, 2018USD ($) | Aug. 31, 2018item | Sep. 30, 2017item | Dec. 31, 2015community | |
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | $ 791,180 | $ 791,180 | $ 780,869 | ||||||||
Number of real estate properties | community | 138 | 138 | |||||||||
Financial information relating to unconsolidated joint ventures operations | |||||||||||
Operating income/(loss) | $ 12,713 | $ (1,382) | $ 19,387 | $ (5,091) | |||||||
Unconsolidated Joint Ventures | |||||||||||
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | 543,692 | 543,692 | 556,694 | ||||||||
Combined summary of balance sheets relating to unconsolidated joint ventures | |||||||||||
Total real estate, net | 3,101,213 | 3,101,213 | 3,311,034 | ||||||||
Cash and cash equivalents | 56,829 | 56,829 | 49,867 | ||||||||
Other assets | 165,767 | 165,767 | 124,428 | ||||||||
Total assets | 3,323,809 | 3,323,809 | 3,485,329 | ||||||||
Third party debt, net | 1,909,223 | 1,909,223 | 2,125,350 | ||||||||
Accounts payable and accrued liabilities | 73,803 | 73,803 | 71,272 | ||||||||
Total liabilities | 1,983,026 | 1,983,026 | 2,196,622 | ||||||||
Total equity | 1,340,783 | 1,340,783 | 1,288,707 | ||||||||
Financial information relating to unconsolidated joint ventures operations | |||||||||||
Total revenues | 75,378 | 76,203 | 233,836 | 215,140 | |||||||
Property operating expenses | 27,505 | 30,096 | 87,073 | 85,435 | |||||||
Real estate depreciation and amortization | 26,027 | 29,545 | 83,661 | 85,063 | |||||||
Operating income/(loss) | 21,846 | 16,562 | 63,102 | 44,642 | |||||||
Interest expense | (20,779) | (22,919) | (64,309) | (63,990) | |||||||
Gain (loss) on sale of property | 97,201 | 115,558 | |||||||||
Net unrealized gain/(loss) on held investments | 25,669 | 27,191 | |||||||||
Other income/(loss) | 82 | 40 | 194 | 141 | |||||||
Net income /(loss) | 124,019 | $ (6,317) | 141,736 | $ (19,207) | |||||||
Unconsolidated Joint Venture Three Washington DC | |||||||||||
Unconsolidated entities | |||||||||||
UDR's Ownership Interest | 100.00% | 30.00% | |||||||||
Unconsolidated Joint Venture West Coast Development JV | |||||||||||
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | $ 52,200 | $ 52,200 | 101,600 | ||||||||
Preferred Equity Investment West Coast Development JV | |||||||||||
Unconsolidated entities | |||||||||||
UDR's Ownership Interest | 48.00% | ||||||||||
Number of real estate properties | community | 5 | ||||||||||
Rate | 6.50% | 6.50% | 6.50% | ||||||||
Preferred Equity Investment 1200 Broadway Nashville TN | |||||||||||
Unconsolidated entities | |||||||||||
Number of apartment homes | item | 313 | ||||||||||
Rate | 8.00% | ||||||||||
Preferred Equity Investment 1641 Lincoln Santa Monica CA | |||||||||||
Unconsolidated entities | |||||||||||
Number of apartment homes | item | 66 | ||||||||||
Rate | 12.00% | ||||||||||
Preferred Equity Investment 1300 Fairmount Philadelphia, PA | |||||||||||
Unconsolidated entities | |||||||||||
Number of apartment homes | item | 471 | ||||||||||
Preferred Equity Investment Essex Orlando, FL | |||||||||||
Unconsolidated entities | |||||||||||
Number of apartment homes | item | 330 | 330 | |||||||||
Rate | 12.50% | 12.50% | |||||||||
Preferred Equity Investment Modera Lake Merritt, Oakland | |||||||||||
Unconsolidated entities | |||||||||||
Number of apartment homes | community | 173 | ||||||||||
Rate | 9.00% | ||||||||||
Operating Community | Unconsolidated Joint Venture UDR Met Life I Partnership | |||||||||||
Unconsolidated entities | |||||||||||
Number of apartment homes | home | 150 | 150 | |||||||||
Investment in unconsolidated entities | $ 29,599 | $ 29,599 | $ 30,839 | ||||||||
UDR's Ownership Interest | 50.00% | 50.00% | 50.00% | ||||||||
Number of real estate properties | property | 1 | 1 | |||||||||
Operating Community | Unconsolidated Joint Venture UDR MetLife II Partnership | |||||||||||
Unconsolidated entities | |||||||||||
Number of apartment homes | home | 4,059 | 4,059 | |||||||||
Investment in unconsolidated entities | $ 300,479 | $ 300,479 | $ 296,807 | ||||||||
UDR's Ownership Interest | 50.00% | 50.00% | 50.00% | ||||||||
Number of real estate properties | property | 18 | 18 | |||||||||
Operating Community | Unconsolidated Joint Venture Other MetLife | |||||||||||
Unconsolidated entities | |||||||||||
Number of apartment homes | home | 1,437 | 1,437 | |||||||||
Investment in unconsolidated entities | $ 102,435 | $ 102,435 | $ 115,668 | ||||||||
UDR's Ownership Interest | 50.60% | 50.60% | 50.60% | ||||||||
Number of real estate properties | property | 5 | 5 | |||||||||
Operating Community | Unconsolidated Joint Venture Vitruvian Park | |||||||||||
Unconsolidated entities | |||||||||||
Number of apartment homes | home | 1,879 | 1,879 | |||||||||
Investment in unconsolidated entities | $ 75,858 | $ 75,858 | $ 71,730 | ||||||||
UDR's Ownership Interest | 50.00% | 50.00% | 50.00% | ||||||||
Number of real estate properties | property | 4 | 4 | |||||||||
Operating Community | Unconsolidated Joint Venture Three Washington DC | |||||||||||
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | $ 156 | $ 156 | $ 5,507 | ||||||||
UDR's Ownership Interest | 30.00% | ||||||||||
Operating Community | Unconsolidated Joint Venture West Coast Development JV | |||||||||||
Unconsolidated entities | |||||||||||
Number of apartment homes | home | 293 | 293 | |||||||||
Investment in unconsolidated entities | $ 35,165 | $ 35,165 | $ 36,143 | ||||||||
UDR's Ownership Interest | 47.00% | 47.00% | 47.00% | ||||||||
Number of real estate properties | property | 1 | 1 | |||||||||
Development Community | |||||||||||
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | $ 247,488 | $ 247,488 | $ 224,175 | ||||||||
Development Community | Unconsolidated Joint Venture Vitruvian Park | |||||||||||
Unconsolidated entities | |||||||||||
Number of real estate properties | property | 1 | 1 | |||||||||
Development Community | Preferred Equity Investment West Coast Development JV | |||||||||||
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | $ 17,080 | $ 17,080 | 65,417 | ||||||||
Rate | 6.50% | 6.50% | |||||||||
Income from investments | $ 71 | $ 25 | $ (100) | $ 974 | |||||||
Development Community | Preferred Equity Investment 1532 Harrison San Francisco, CA | |||||||||||
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | 29,753 | 29,753 | 24,986 | ||||||||
UDR commitment | $ 24,645 | $ 24,645 | |||||||||
Rate | 11.00% | 11.00% | |||||||||
Years to Maturity | 2 years 9 months 18 days | ||||||||||
Income from investments | $ 802 | 721 | $ 2,324 | 1,492 | |||||||
Development Community | Preferred Equity Investment 1200 Broadway Nashville TN | |||||||||||
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | 62,666 | 62,666 | 58,982 | ||||||||
UDR commitment | $ 55,558 | $ 55,558 | |||||||||
Rate | 8.00% | 8.00% | |||||||||
Years to Maturity | 3 years | ||||||||||
Income from investments | $ 1,244 | 859 | $ 3,619 | 1,870 | |||||||
Development Community | Preferred Equity Investment 1641 Lincoln Santa Monica CA | |||||||||||
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | 10,072 | 10,072 | 9,211 | ||||||||
UDR commitment | $ 8,800 | $ 8,800 | |||||||||
Rate | 12.00% | 12.00% | |||||||||
Years to Maturity | 2 years 9 months 18 days | ||||||||||
Income from investments | $ 299 | 141 | $ 861 | 141 | |||||||
Development Community | Preferred Equity Investment 1300 Fairmount Philadelphia, PA | |||||||||||
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | 36,404 | 36,404 | 8,318 | ||||||||
UDR commitment | 51,393 | $ 51,393 | |||||||||
Years to Maturity | 3 years 10 months 24 days | ||||||||||
Income from investments | 930 | 27 | $ 1,724 | 27 | |||||||
Development Community | Preferred Equity Investment Essex Orlando, FL | |||||||||||
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | 14,347 | 14,347 | 9,940 | ||||||||
UDR commitment | $ 12,886 | $ 12,886 | |||||||||
Rate | 12.50% | 12.50% | |||||||||
Years to Maturity | 3 years 10 months 24 days | ||||||||||
Income from investments | $ 443 | 46 | $ 1,182 | 46 | |||||||
Development Community | Preferred Equity Investment Modera Lake Merritt, Oakland | |||||||||||
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | 17,377 | 17,377 | |||||||||
UDR commitment | $ 27,250 | $ 27,250 | |||||||||
Rate | 9.00% | 9.00% | |||||||||
Years to Maturity | 4 years 7 months 6 days | ||||||||||
Income from investments | $ 366 | $ 622 | |||||||||
Development Community | Other Investment The Portals Washington, DC | |||||||||||
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | 46,863 | 46,863 | 43,167 | ||||||||
UDR commitment | $ 38,559 | $ 38,559 | |||||||||
Rate | 11.00% | 11.00% | |||||||||
Years to Maturity | 1 year 8 months 12 days | ||||||||||
Income from investments | $ 1,287 | 1,015 | $ 3,694 | 2,523 | |||||||
Development Community | Other Investment Ventures | |||||||||||
Unconsolidated entities | |||||||||||
Investment in unconsolidated entities | 12,926 | 12,926 | $ 4,154 | ||||||||
UDR commitment | 18,000 | 18,000 | |||||||||
Income from investments | $ 4,247 | $ (77) | $ 4,272 | $ (262) | |||||||
Land Parcel | Unconsolidated Joint Venture Vitruvian Park | |||||||||||
Unconsolidated entities | |||||||||||
Number of real estate properties | property | 4 | 4 |
JOINT VENTURES AND PARTNERSHI_4
JOINT VENTURES AND PARTNERSHIPS - Commitments (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
Aug. 31, 2019USD ($)communityitem | Jul. 31, 2019USD ($)community | Jun. 30, 2019USD ($) | May 31, 2019USD ($)homecommunity | Jan. 31, 2019USD ($)itemcommunity | May 31, 2017USD ($)itemloan | Mar. 31, 2017 | Sep. 30, 2019USD ($)community | Sep. 30, 2018USD ($)item | Sep. 30, 2019USD ($)community | Sep. 30, 2018USD ($)item | Dec. 31, 2017USD ($)itemcommunity | Dec. 31, 2015USD ($)item | Apr. 30, 2019USD ($)community | Jan. 01, 2019community | Dec. 31, 2018USD ($) | Aug. 31, 2018USD ($)item | Sep. 30, 2017USD ($)item | Jun. 30, 2017USD ($)item | |
Joint Ventures | |||||||||||||||||||
Real estate owned | $ 11,564,395,000 | $ 11,564,395,000 | $ 10,196,159,000 | ||||||||||||||||
Second installment of payable incurred in partial consideration for acquisition of ownership interest in joint venture | 108,077,000 | 108,077,000 | |||||||||||||||||
Investment in unconsolidated entities | 791,180,000 | $ 791,180,000 | 780,869,000 | ||||||||||||||||
Condition for Community considered to have stabilized occupancy | 90% | ||||||||||||||||||
Time to maintain percent occupancy to be considered a community | 3 months | ||||||||||||||||||
Investment in unconsolidated joint ventures | $ 72,079,000 | $ 85,059,000 | |||||||||||||||||
Long-term Debt | 3,935,897,000 | 3,935,897,000 | 3,547,787,000 | ||||||||||||||||
Deferred fees from the sale of properties | 10,600,000 | 10,600,000 | 11,000,000 | ||||||||||||||||
Joint venture management and other fees | $ 2,900,000 | 8,700,000 | |||||||||||||||||
Joint venture management and other fees | $ 6,386,000 | $ 2,888,000 | $ 11,982,000 | $ 8,819,000 | |||||||||||||||
Type of revenue | udr:ManagementAndOtherFeesMember | udr:ManagementAndOtherFeesMember | udr:ManagementAndOtherFeesMember | udr:ManagementAndOtherFeesMember | |||||||||||||||
UDR/MetLife operating communities | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
UDR's Ownership Interest | 50.00% | ||||||||||||||||||
Number of communities acquired | community | 10 | ||||||||||||||||||
Number of communities under development purchased | community | 1 | ||||||||||||||||||
Number of land parcels | item | 4 | ||||||||||||||||||
Value of joint venture | $ 1,100,000,000 | ||||||||||||||||||
Value of joint venture UDR's share | 557,000,000 | ||||||||||||||||||
Sale value of joint venture | 645,000,000 | ||||||||||||||||||
Sale value of joint venture UDR's share | $ 323,000,000 | ||||||||||||||||||
Number of communities sold | community | 5 | ||||||||||||||||||
Ownership interest (percentage) | 50.00% | ||||||||||||||||||
UDR/MetLife II operating communities | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Number of operating communities held upon closing of transaction | community | 7 | ||||||||||||||||||
Unconsolidated Joint Venture Vitruvian Park | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Number of apartments of development community | 0 | 0 | |||||||||||||||||
Unconsolidated Joint Venture Three Washington DC | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
UDR's Ownership Interest | 100.00% | 30.00% | |||||||||||||||||
Payment to acquire real estate | $ 184,000,000 | ||||||||||||||||||
Number of communities | community | 3 | ||||||||||||||||||
Number of communities sold | community | 292 | ||||||||||||||||||
Acquisition-related costs | $ 2,800,000 | ||||||||||||||||||
Reduction of carrying amount of real estate | $ 23,800,000 | ||||||||||||||||||
Ownership interest (percentage) | 100.00% | ||||||||||||||||||
Unconsolidated Joint Venture West Coast Development JV | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Investment in unconsolidated entities | $ 52,200,000 | $ 52,200,000 | $ 101,600,000 | ||||||||||||||||
Preferred Equity Investment West Coast Development JV | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
UDR's Ownership Interest | 48.00% | ||||||||||||||||||
Number of communities are located in coastal market | item | 3 | ||||||||||||||||||
Preferred return (as a percent) | 6.50% | 6.50% | 6.50% | ||||||||||||||||
Condition for Community considered to have stabilized occupancy | 80% | ||||||||||||||||||
Time to maintain percent occupancy to be considered a community | 90 days | ||||||||||||||||||
Hold period | 1 year | 1 year | |||||||||||||||||
Number of communities acquired | community | 1 | ||||||||||||||||||
Number of communities | community | 5 | ||||||||||||||||||
Number of communities sold | community | 2 | ||||||||||||||||||
Number of remaining communities | community | 4 | ||||||||||||||||||
Number of joint ventures agreements entered into | item | 2 | ||||||||||||||||||
Cost of ownership interest | $ 136,300,000 | ||||||||||||||||||
Preferred Equity Investment Anaheim CA | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
UDR's Ownership Interest | 100.00% | 49.00% | |||||||||||||||||
Number of communities acquired | community | 1 | ||||||||||||||||||
Number of apartment homes acquired | 386 | ||||||||||||||||||
Payment to acquire real estate | $ 33,500,000 | ||||||||||||||||||
Number of remaining communities acquired | community | 2 | ||||||||||||||||||
Number of remaining communities | community | 1 | ||||||||||||||||||
Preferred Equity Investment Seattle WA | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
UDR's Ownership Interest | 100.00% | 49.00% | 49.00% | ||||||||||||||||
Number of apartment homes acquired | item | 155 | 155 | |||||||||||||||||
Payment to acquire real estate | $ 20,000,000 | ||||||||||||||||||
Cost of ownership interest | $ 15,500,000 | ||||||||||||||||||
Preferred Equity Investment Hillsboro Oregon | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
UDR's Ownership Interest | 49.00% | ||||||||||||||||||
Number of apartment homes acquired | item | 276 | ||||||||||||||||||
Cost of ownership interest | $ 16,100,000 | ||||||||||||||||||
Preferred Equity Investment San Francisco California JV | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Preferred return (as a percent) | 11.00% | ||||||||||||||||||
Number of apartment homes | item | 136 | ||||||||||||||||||
Equity Investment | $ 24,600,000 | ||||||||||||||||||
Preferred Equity Investment 1200 Broadway Nashville TN | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Preferred return (as a percent) | 8.00% | ||||||||||||||||||
Number of apartment homes | item | 313 | ||||||||||||||||||
Equity Investment | $ 55,600,000 | ||||||||||||||||||
Preferred Equity Investment 1641 Lincoln Santa Monica CA | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Preferred return (as a percent) | 12.00% | ||||||||||||||||||
Number of apartment homes | item | 66 | ||||||||||||||||||
Equity Investment | $ 8,800,000 | ||||||||||||||||||
Preferred Equity Investment 1300 Fairmount Philadelphia, PA | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Number of apartment homes | item | 471 | ||||||||||||||||||
Equity Investment | $ 51,400,000 | ||||||||||||||||||
Preferred Equity Investment 1300 Fairmount Philadelphia, PA | Minimum | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Preferred return (as a percent) | 8.50% | ||||||||||||||||||
Preferred Equity Investment 1300 Fairmount Philadelphia, PA | Maximum | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Preferred return (as a percent) | 12.00% | ||||||||||||||||||
Preferred Equity Investment Essex Orlando, FL | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Preferred return (as a percent) | 12.50% | 12.50% | |||||||||||||||||
Number of apartment homes | item | 330 | 330 | |||||||||||||||||
Equity Investment | $ 12,900,000 | $ 12,900,000 | |||||||||||||||||
Preferred Equity Investment Modera Lake Merritt, Oakland | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Preferred return (as a percent) | 9.00% | ||||||||||||||||||
Number of apartment homes | community | 173 | ||||||||||||||||||
Equity Investment | $ 27,300,000 | ||||||||||||||||||
Third Party Developer in Washington D.C. | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Number of apartments of development community | item | 373 | ||||||||||||||||||
Equity Investment | $ 38,600,000 | ||||||||||||||||||
Long-term Debt | $ 71,000,000 | ||||||||||||||||||
Interest rate of medium-term notes | 13.50% | ||||||||||||||||||
Debt instrument term | 4 years | ||||||||||||||||||
Number of extensions available | loan | 1 | ||||||||||||||||||
Loan extension term | 12 months | ||||||||||||||||||
Weighted average interest rate of Company's committed portion | 11 | ||||||||||||||||||
Operating Community in Arlington, Virginia | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Number of communities sold | community | 1 | ||||||||||||||||||
Number of apartment homes | home | 217 | ||||||||||||||||||
Proceeds from sale of real estate | $ 74,800,000 | ||||||||||||||||||
Gain/(loss) on sales of real estate owned, net of tax | $ 5,300,000 | ||||||||||||||||||
Operating Community in Silver Spring, Maryland | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Number of communities sold | community | 151 | ||||||||||||||||||
Proceeds from sale of real estate | $ 43,500,000 | ||||||||||||||||||
Gain/(loss) on sales of real estate owned, net of tax | $ 5,300,000 | ||||||||||||||||||
UDR/KFH joint venture | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Number of communities sold | community | 3 | 3 | |||||||||||||||||
Ground Leases | |||||||||||||||||||
Joint Ventures | |||||||||||||||||||
Proceeds from sale of real estate | $ 38,000,000 | ||||||||||||||||||
Gain/(loss) on sales of real estate owned, net of tax | $ 5,300,000 |
LEASES - Lessee Future Minimum
LEASES - Lessee Future Minimum Payments (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)community | |
Lessee operating leases | |
Number of communities subject to ground leases | community | 6 |
Operating leases existence of option to extend | true |
Lease classification per practical expedient | true |
Operating lease right-of-use assets | $ 135,889 |
Weighted average remaining lease term | 55 years 2 months 12 days |
Weighted average discount rate | 5.10% |
Increase in operating lease right-to-use assets | $ 42,143 |
Increase in operating lease liabilities | 42,100 |
Increase in operating lease liabilities | 88,336 |
Future minimum lease payments | |
2019 | 1,972 |
2020 | 7,889 |
2021 | 7,845 |
2022 | 7,813 |
2023 | 7,813 |
Thereafter | 370,467 |
Total future minimum lease payments (undiscounted) | 403,799 |
Difference between future undiscounted cash flows and discounted cash flows | (273,664) |
Operating lease liabilities | 130,135 |
Ground Leases | |
Future minimum lease payments | |
2019 | 1,953 |
2020 | 7,813 |
2021 | 7,813 |
2022 | 7,813 |
2023 | 7,813 |
Thereafter | 370,467 |
Total future minimum lease payments (undiscounted) | 403,672 |
Difference between future undiscounted cash flows and discounted cash flows | (273,659) |
Operating lease liabilities | 130,013 |
Office Space | |
Future minimum lease payments | |
2019 | 19 |
2020 | 76 |
2021 | 32 |
Total future minimum lease payments (undiscounted) | 127 |
Difference between future undiscounted cash flows and discounted cash flows | (5) |
Operating lease liabilities | $ 122 |
LEASES - Lessee Expenses (Detai
LEASES - Lessee Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lessee operating leases | ||
Contractual lease expense | $ 100 | $ 300 |
Variable lease expense | 100 | 300 |
Total lease expense | 2,160 | 6,758 |
Operating lease right-of-use asset amortization | 600 | |
Operating lease liabilities amortization | 300 | |
Ground Leases | ||
Lessee operating leases | ||
Contractual lease expense | 1,954 | 6,232 |
Variable lease expense | 187 | 469 |
Ground Leases | Other operating expense | ||
Lessee operating leases | ||
Total lease expense | 2,141 | 6,701 |
Office Space | General and administrative expense | ||
Lessee operating leases | ||
Contractual lease expense | $ 19 | $ 57 |
LEASES - Lessor (Details)
LEASES - Lessor (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | |
Future minimum lease payments | |||
Variable lease expense | $ 100 | $ 300 | |
Ground Leases | |||
Lessor leases | |||
Proceeds from sale of real estate | $ 38,000 | ||
Future minimum lease payments | |||
Variable lease expense | $ 187 | $ 469 | |
Apartment Homes | |||
Lessor leases | |||
Percentage of lease revenue | 98.10% | ||
Option to extend | true | ||
Apartment Homes | Maximum | |||
Lessor leases | |||
Lease terms | 12 months | 12 months | |
Retail and Commercial Spaces | |||
Lessor leases | |||
Percentage of lease revenue | 1.90% | ||
Option to extend | true | ||
Future minimum lease payments | |||
2019 | $ 4,958 | $ 4,958 | |
2020 | 20,565 | 20,565 | |
2021 | 19,788 | 19,788 | |
2022 | 18,094 | 18,094 | |
2023 | 16,843 | 16,843 | |
Thereafter | 92,719 | 92,719 | |
Total future minimum payments | $ 172,967 | $ 172,967 | |
Retail and Commercial Spaces | Minimum | |||
Lessor leases | |||
Lease terms | 5 years | 5 years | |
Retail and Commercial Spaces | Maximum | |||
Lessor leases | |||
Lease terms | 15 years | 15 years |
SECURED AND UNSECURED DEBT, N_3
SECURED AND UNSECURED DEBT, NET - Summary (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Oct. 30, 2019USD ($) | Sep. 30, 2019USD ($)community | Dec. 31, 2018USD ($) | |
Secured debt instruments | |||
Interest rate at end of the period | 4.63% | 3.63% | |
Long-term Debt | $ 3,935,897 | $ 3,547,787 | |
Unsecured Debt | 3,335,273 | 2,946,560 | |
Borrowings outstanding | $ 2,800 | 3,300 | |
Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 6 years 10 months 24 days | ||
Commercial Paper | |||
Secured debt instruments | |||
Interest rate at end of the period | 2.28% | ||
Borrowings outstanding at end of period | $ 60,000 | 101,115 | |
Commercial Paper | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 1 month 6 days | ||
Mortgages Notes Payable | Fixed Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 575,965 | 417,989 | |
Interest rate at end of the period | 3.55% | ||
Number of Communities Encumbered | community | 9 | ||
Mortgages Notes Payable | Fixed Rate Debt | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 6 years 7 months 6 days | ||
Tax-exempt secured notes payable | Variable Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 27,000 | 94,700 | |
Interest rate at end of the period | 2.07% | ||
Number of Communities Encumbered | community | 1 | ||
Tax-exempt secured notes payable | Variable Rate Debt | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 12 years 6 months | ||
Fannie Mae credit facilities | Fixed Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | 90,000 | ||
Secured Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 600,624 | 601,227 | |
Interest rate at end of the period | 3.49% | ||
Long-term Debt | $ 600,624 | ||
Number of Communities Encumbered | community | 10 | ||
Secured Debt | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 6 years 9 months 18 days | ||
Secured Debt | Fixed Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 573,690 | 506,646 | |
Interest rate at end of the period | 3.55% | ||
Long-term Debt | $ 573,690 | ||
Number of Communities Encumbered | community | 9 | ||
Deferred finance costs, net | $ (2,275) | (1,343) | |
Secured Debt | Fixed Rate Debt | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 6 years 7 months 6 days | ||
Secured Debt | Variable Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 26,934 | 94,581 | |
Interest rate at end of the period | 2.07% | ||
Long-term Debt | $ 26,934 | ||
Number of Communities Encumbered | community | 1 | ||
Deferred finance costs, net | $ (66) | (119) | |
Secured Debt | Variable Rate Debt | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 12 years 6 months | ||
Unsecured Revolving credit facility due 2023 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 3 years 3 months 18 days | ||
Unsecured Working Capital Credit Facility due January 2021 | |||
Secured debt instruments | |||
Interest rate at end of the period | 2.84% | ||
Borrowings outstanding | $ 34,447 | 16 | |
Unsecured Working Capital Credit Facility due January 2021 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 1 year 3 months 18 days | ||
Term Loan due September 2023 | |||
Secured debt instruments | |||
Interest rate at end of the period | 3.01% | ||
Senior Notes | $ 35,000 | 35,000 | |
Term Loan due September 2023 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 4 years | ||
3.70% Term Notes Due October 2020 | |||
Secured debt instruments | |||
Unamortized discount | $ 0 | 14 | |
Senior Notes | 299,986 | ||
4.63% Medium-Term Notes due January 2022 | |||
Secured debt instruments | |||
Unamortized discount | $ 818 | 1,087 | |
Interest rate at end of the period | 4.63% | ||
Senior Notes | $ 399,182 | 398,913 | |
4.63% Medium-Term Notes due January 2022 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 2 years 3 months 18 days | ||
1.93% Term Loan due September 2023 | |||
Secured debt instruments | |||
Interest rate at end of the period | 1.93% | ||
Senior Notes | $ 315,000 | 315,000 | |
1.93% Term Loan due September 2023 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 4 years | ||
3.75% Medium-Term Notes Due July 2024 | |||
Secured debt instruments | |||
Unamortized discount | $ 495 | 574 | |
Interest rate at end of the period | 3.75% | ||
Senior Notes | $ 299,505 | 299,426 | |
3.75% Medium-Term Notes Due July 2024 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 4 years 9 months 18 days | ||
8.50% Debentures, Due September 2024 | |||
Secured debt instruments | |||
Interest rate at end of the period | 8.50% | ||
Senior Notes | $ 15,644 | 15,644 | |
8.50% Debentures, Due September 2024 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 5 years | ||
4.00% Medium-Term Note due October 2025 | |||
Secured debt instruments | |||
Unamortized discount | $ 413 | 465 | |
Interest rate at end of the period | 4.00% | ||
Senior Notes | $ 299,587 | 299,535 | |
4.00% Medium-Term Note due October 2025 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 6 years | ||
2.95% Medium-Term Note due September 2026 | |||
Secured debt instruments | |||
Interest rate at end of the period | 2.95% | ||
Senior Notes | $ 300,000 | 300,000 | |
2.95% Medium-Term Note due September 2026 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 6 years 10 months 24 days | ||
3.50 Medium-Term Note due July 2027 | |||
Secured debt instruments | |||
Unamortized discount | $ 547 | 600 | |
Interest rate at end of the period | 3.50% | ||
Senior Notes | $ 299,453 | 299,400 | |
3.50 Medium-Term Note due July 2027 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 7 years 9 months 18 days | ||
3.50% Medium-Term Notes Due January 2028 | |||
Secured debt instruments | |||
Unamortized discount | $ 983 | 1,072 | |
Interest rate at end of the period | 3.50% | ||
Senior Notes | $ 299,017 | 298,928 | |
3.50% Medium-Term Notes Due January 2028 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 8 years 3 months 18 days | ||
4.40% Medium-Term Notes due January 2029 | |||
Secured debt instruments | |||
Unamortized discount | $ 6 | 6 | |
Interest rate at end of the period | 4.40% | ||
Senior Notes | $ 299,994 | 299,994 | |
4.40% Medium-Term Notes due January 2029 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 9 years 3 months 18 days | ||
3.20% Medium-Term Notes due January 2030 | |||
Secured debt instruments | |||
Unamortized discount | $ 990 | 0 | |
Interest rate at end of the period | 3.20% | ||
Senior Notes | $ 299,010 | ||
Borrowings outstanding | $ 400,000 | ||
3.20% Medium-Term Notes due January 2030 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 10 years 3 months 18 days | ||
3.00% Medium-Term Notes due August 2031 | |||
Secured debt instruments | |||
Unamortized discount | $ 1,148 | 0 | |
Interest rate at end of the period | 3.00% | ||
Senior Notes | $ 398,852 | ||
3.00% Medium-Term Notes due August 2031 | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 11 years 10 months 24 days | ||
Other | |||
Secured debt instruments | |||
Senior Notes | $ 14 | 16 | |
Unsecured Debt | |||
Secured debt instruments | |||
Interest rate at end of the period | 3.54% | ||
Long-term Debt | $ 3,335,273 | ||
Unsecured Debt | 3,335,273 | 2,946,560 | |
Deferred finance costs, net | $ (19,432) | (16,413) | |
Unsecured Debt | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 6 years 10 months 24 days | ||
United Dominion Realty L.P. | |||
Secured debt instruments | |||
Principal outstanding | $ 99,064 | 26,929 | |
Interest rate at end of the period | 2.85% | ||
Number of Communities Encumbered | community | 2 | ||
United Dominion Realty L.P. | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 10 years 10 months 24 days | ||
United Dominion Realty L.P. | Fixed Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 72,130 | ||
Interest rate at end of the period | 3.10% | ||
Number of Communities Encumbered | community | 1 | ||
United Dominion Realty L.P. | Fixed Rate Debt | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 10 years 3 months 18 days | ||
United Dominion Realty L.P. | Variable Rate Debt | |||
Secured debt instruments | |||
Deferred finance costs, net | $ (66) | (71) | |
United Dominion Realty L.P. | Mortgages Notes Payable | |||
Secured debt instruments | |||
Principal outstanding | 72,500 | ||
United Dominion Realty L.P. | Mortgages Notes Payable | Fixed Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 72,500 | ||
Interest rate at end of the period | 3.10% | ||
Number of Communities Encumbered | community | 1 | ||
Deferred finance costs, net | $ (370) | ||
United Dominion Realty L.P. | Mortgages Notes Payable | Fixed Rate Debt | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 10 years 3 months 18 days | ||
United Dominion Realty L.P. | Tax-exempt secured notes payable | Variable Rate Debt | |||
Secured debt instruments | |||
Principal outstanding | $ 27,000 | $ 27,000 | |
Interest rate at end of the period | 2.07% | ||
Number of Communities Encumbered | community | 1 | ||
United Dominion Realty L.P. | Tax-exempt secured notes payable | Variable Rate Debt | Weighted Average | |||
Secured debt instruments | |||
Years to maturity | 12 years 6 months |
SECURED AND UNSECURED DEBT, N_4
SECURED AND UNSECURED DEBT, NET - Variable Rate Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Credit facilities | ||
Unamortized net premium | $ 3,900 | $ 5,000 |
Secured credit facilities | ||
Borrowings outstanding at end of period | 2,800 | 3,300 |
Fannie Mae | ||
Secured credit facilities | ||
Borrowings outstanding at end of period | 90,000 | |
Weighted average daily borrowings during the period ended | 80,000 | 253,813 |
Maximum daily borrowings during the period ended | $ 90,000 | $ 314,869 |
Weighted average interest rate during the period ended | 4.00% | 4.70% |
Interest rate at the end of the period | 4.00% |
SECURED AND UNSECURED DEBT, N_5
SECURED AND UNSECURED DEBT, NET - Credit Facilities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Summary of short-term bank borrowings under unsecured commercial bank credit facility | ||
Borrowings outstanding at end of period | $ 2,800 | $ 3,300 |
Unsecured Commercial Bank Credit Facility | ||
Summary of short-term bank borrowings under unsecured commercial bank credit facility | ||
Total revolving credit facility | 2,000,000 | |
Unsecured Revolving credit facility due 2023 | Unsecured Commercial Bank Credit Facility | ||
Summary of short-term bank borrowings under unsecured commercial bank credit facility | ||
Total revolving credit facility | 1,100,000 | |
Term Loan due September 2023 | Unsecured Commercial Bank Credit Facility | ||
Summary of short-term bank borrowings under unsecured commercial bank credit facility | ||
Total revolving credit facility | 350,000 | |
Revolving Credit Facility | Unsecured Commercial Bank Credit Facility | ||
Summary of short-term bank borrowings under unsecured commercial bank credit facility | ||
Total revolving credit facility | 1,100,000 | 1,100,000 |
Unsecured Working Capital Credit Facility due January 2021 | ||
Summary of short-term bank borrowings under unsecured commercial bank credit facility | ||
Total revolving credit facility | 75,000 | 75,000 |
Borrowings outstanding at end of period | 34,447 | 16 |
Weighted average daily borrowings during the period ended | 24,870 | 26,101 |
Maximum daily borrowings during the period ended | $ 66,170 | $ 64,633 |
Weighted average interest rate during the period ended | 3.20% | 2.90% |
Interest rate at the end of the period | 2.80% | 3.30% |
Unsecured Commercial Paper | United Dominion Realty L.P. | ||
Summary of short-term bank borrowings under unsecured commercial bank credit facility | ||
Borrowings outstanding at end of period | $ 60,000 | $ 101,100 |
SECURED AND UNSECURED DEBT, N_6
SECURED AND UNSECURED DEBT, NET - Short Term Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Commercial Paper | ||
Unsecured Debt | ||
Total unsecured commercial paper program | $ 500,000 | $ 500,000 |
Borrowings outstanding at end of period | 60,000 | 101,115 |
Weighted average daily borrowings during the period ended | 163,347 | 344,235 |
Maximum daily borrowings during the period ended | $ 435,000 | $ 440,000 |
Weighted average interest rate during the period ended | 2.70% | 2.40% |
Interest rate at the end of the period | 2.30% | 2.90% |
4.00% Medium-Term Note due October 2025 | ||
Unsecured Debt | ||
Weighted average interest rate during the period ended | 4.53% |
SECURED AND UNSECURED DEBT, N_7
SECURED AND UNSECURED DEBT, NET - Unsecured Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Aggregate maturities of unsecured debt | ||
2019 | $ 60,974 | |
2020 | 108,077 | |
2021 | 35,564 | |
2022 | 401,157 | |
2023 | 391,245 | |
2024 | 315,644 | |
2025 | 427,600 | |
2026 | 350,000 | |
2027 | 300,000 | |
2028 | 380,000 | |
Thereafter | 1,189,500 | |
Subtotal | 3,959,761 | |
Non-cash (a) | (23,864) | |
Long-term Debt, Total | 3,935,897 | $ 3,547,787 |
Secured Debt | ||
Aggregate maturities of unsecured debt | ||
2019 | 974 | |
2020 | 108,077 | |
2021 | 1,117 | |
2022 | 1,157 | |
2023 | 41,245 | |
2025 | 127,600 | |
2026 | 50,000 | |
2028 | 80,000 | |
Thereafter | 189,500 | |
Subtotal | 599,670 | |
Non-cash (a) | 954 | |
Long-term Debt, Total | 600,624 | |
Unsecured Debt | ||
Aggregate maturities of unsecured debt | ||
2019 | 60,000 | |
2021 | 34,447 | |
2022 | 400,000 | |
2023 | 350,000 | |
2024 | 315,644 | |
2025 | 300,000 | |
2026 | 300,000 | |
2027 | 300,000 | |
2028 | 300,000 | |
Thereafter | 1,000,000 | |
Subtotal | 3,360,091 | |
Non-cash (a) | (24,818) | |
Long-term Debt, Total | 3,335,273 | |
Fixed Rate Debt | Secured Debt | ||
Aggregate maturities of unsecured debt | ||
2019 | 974 | |
2020 | 108,077 | |
2021 | 1,117 | |
2022 | 1,157 | |
2023 | 41,245 | |
2025 | 127,600 | |
2026 | 50,000 | |
2028 | 80,000 | |
Thereafter | 162,500 | |
Subtotal | 572,670 | |
Non-cash (a) | 1,020 | |
Long-term Debt, Total | 573,690 | |
Variable Rate Debt | Secured Debt | ||
Aggregate maturities of unsecured debt | ||
Thereafter | 27,000 | |
Subtotal | 27,000 | |
Non-cash (a) | (66) | |
Long-term Debt, Total | $ 26,934 |
SECURED AND UNSECURED DEBT, N_8
SECURED AND UNSECURED DEBT, NET - Debt Covenants (Details) $ in Thousands | Jul. 02, 2019USD ($) | Oct. 30, 2019USD ($) | Aug. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Fixed and variable rate debt | |||||||||
Amortization of financing costs | $ 1,100 | $ 1,100 | $ 3,100 | $ 3,200 | |||||
Secured Debt | |||||||||
Secured debt amount which encumbers real estate owned based upon book value | $ 1,200,000 | $ 1,200,000 | |||||||
Percentage of secured debt which encumbers real estate owned based upon book value | 10.30% | 10.30% | |||||||
Secured debt amount of real estate owned which is unencumbered | $ 10,400,000 | $ 10,400,000 | |||||||
Percentage of secured debt of real estate owned which is unencumbered | 89.70% | 89.70% | |||||||
Long-term commercial paper | $ 500,000 | $ 500,000 | |||||||
Interest rate at end of the period | 4.63% | 3.63% | |||||||
Secured Debt | 600,624 | $ 600,624 | $ 601,227 | ||||||
Commercial Paper | |||||||||
Secured Debt | |||||||||
Commercial paper program | 60,000 | $ 60,000 | 101,115 | ||||||
Interest rate at end of the period | 2.28% | ||||||||
Fixed Rate Mortgage Due October 2029 | |||||||||
Secured Debt | |||||||||
Principal outstanding | 90,000 | $ 90,000 | |||||||
Interest rate at end of the period | 2.70% | ||||||||
Mortgage Due February 2020 | |||||||||
Secured Debt | |||||||||
Principal outstanding | 72,500 | $ 72,500 | |||||||
Interest rate at end of the period | 3.10% | ||||||||
3.20% senior unsecured notes due 2030 | |||||||||
Secured Debt | |||||||||
Principal outstanding | $ 400,000 | ||||||||
Interest rate at end of the period | 3.20% | 3.20% | |||||||
Senior Notes | $ 300,000 | $ 100,000 | |||||||
Percentage of notes price | 103.32% | ||||||||
3.20% senior unsecured notes due 2030 | Treasury Lock | |||||||||
Secured Debt | |||||||||
Weighted average interest rate (as a percent) | 3.24% | ||||||||
3.10% senior unsecured notes due 2034 | |||||||||
Secured Debt | |||||||||
Interest rate at end of the period | 3.10% | ||||||||
Senior Notes | $ 300,000 | ||||||||
Percentage of notes price | 99.56% | ||||||||
3.10% senior unsecured notes due 2034 | Treasury Lock | |||||||||
Secured Debt | |||||||||
Weighted average interest rate (as a percent) | 3.13% | ||||||||
4.63% Medium-Term Notes due January 2022 | |||||||||
Secured Debt | |||||||||
Make-whole amount | $ 21,500 | ||||||||
Senior Notes | 400,000 | ||||||||
Fannie Mae credit facilities | |||||||||
Secured Debt | |||||||||
Redemption of debt | 90,000 | ||||||||
Unsecured Debt | |||||||||
Secured Debt | |||||||||
Interest rate at end of the period | 3.54% | ||||||||
Credit facility interest rate | 90 | ||||||||
Basis points added to to variable rate | 90.00% | ||||||||
Unsecured Debt | Maximum | |||||||||
Secured Debt | |||||||||
Basis points added to to variable rate | 165.00% | ||||||||
Unsecured Debt | Minimum | |||||||||
Secured Debt | |||||||||
Basis points added to to variable rate | 80.00% | ||||||||
Unsecured Working Capital Credit Facility due January 2021 | |||||||||
Secured Debt | |||||||||
Credit facilities with aggregate commitment | 75,000 | $ 75,000 | 75,000 | ||||||
Interest rate at end of the period | 2.84% | ||||||||
Credit facility interest rate | 82.5 | ||||||||
Unsecured Working Capital Credit Facility due January 2021 | Maximum | |||||||||
Secured Debt | |||||||||
Basis points added to to variable rate | 145.00% | ||||||||
Unsecured Working Capital Credit Facility due January 2021 | Minimum | |||||||||
Secured Debt | |||||||||
Basis points added to to variable rate | 75.00% | ||||||||
3.75% Medium-Term Notes Due July 2024 | |||||||||
Secured Debt | |||||||||
Interest rate at end of the period | 3.75% | ||||||||
Portion of medium term note subject to interest rate swaps | 100,000 | $ 100,000 | |||||||
Long-term Debt, Weighted Average Interest Rate | 3.69% | ||||||||
Senior Notes | 299,505 | $ 299,505 | 299,426 | ||||||
Mortgages Notes Payable | Fixed Rate Debt | |||||||||
Secured Debt | |||||||||
Principal outstanding | 575,965 | $ 575,965 | 417,989 | ||||||
Interest rate at end of the period | 3.55% | ||||||||
Debt Assumed As Part of Acquisition | |||||||||
Secured Debt | |||||||||
Amortization of Debt Discount (Premium) | 600 | $ 900 | $ 1,700 | $ 2,400 | |||||
Tax-exempt secured notes payable | Variable Rate Debt | |||||||||
Secured Debt | |||||||||
Principal outstanding | $ 27,000 | $ 27,000 | 94,700 | ||||||
Interest rate at end of the period | 2.07% | ||||||||
Fannie Mae credit facilities | Fixed Rate Debt | |||||||||
Secured Debt | |||||||||
Principal outstanding | 90,000 | ||||||||
Tax-exempt secured notes payable | Variable Rate Debt | |||||||||
Secured Debt | |||||||||
Notes payable maximum interest rates range | 2.07% | 2.07% | |||||||
Payment of notes payable | $ 67,700 | ||||||||
Revolving Credit Facility | |||||||||
Secured Debt | |||||||||
Basis points added to to variable rate | 82.50% | ||||||||
Commitment fee | 15.00% | ||||||||
Revolving Credit Facility | Maximum | |||||||||
Secured Debt | |||||||||
Basis points added to to variable rate | 145.00% | ||||||||
Commitment fee | 30.00% | ||||||||
Revolving Credit Facility | Minimum | |||||||||
Secured Debt | |||||||||
Basis points added to to variable rate | 75.00% | ||||||||
Commitment fee | 10.00% | ||||||||
4.00% Medium-Term Note due October 2025 | |||||||||
Secured Debt | |||||||||
Interest rate at end of the period | 4.00% | ||||||||
Portion of medium term note subject to interest rate swaps | 200,000 | $ 200,000 | |||||||
Senior Notes | 299,587 | $ 299,587 | 299,535 | ||||||
4.40% Medium-Term Notes due January 2029 | |||||||||
Secured Debt | |||||||||
Interest rate at end of the period | 4.40% | ||||||||
Portion of medium term note subject to interest rate swaps | 150,000 | $ 150,000 | |||||||
Long-term Debt, Weighted Average Interest Rate | 4.27% | ||||||||
Senior Notes | 299,994 | $ 299,994 | 299,994 | ||||||
2.95% Medium-Term Note due September 2026 | |||||||||
Secured Debt | |||||||||
Interest rate at end of the period | 2.95% | ||||||||
Senior Notes | 300,000 | $ 300,000 | 300,000 | ||||||
3.20% Medium-Term Notes due January 2030 | |||||||||
Secured Debt | |||||||||
Interest rate at end of the period | 3.20% | ||||||||
Medium-term notes | $ 300,000 | $ 100,000 | $ 300,000 | ||||||
Interest rate of medium-term notes | 3.20% | 3.20% | 3.20% | ||||||
Percentage of principal amount at issuance | 99.66 | ||||||||
Long-term Debt, Weighted Average Interest Rate | 3.42% | ||||||||
Senior Notes | 299,010 | $ 299,010 | |||||||
3.00% Medium-Term Notes due August 2031 | |||||||||
Secured Debt | |||||||||
Interest rate at end of the period | 3.00% | ||||||||
Medium-term notes | $ 400,000 | ||||||||
Interest rate of medium-term notes | 3.00% | ||||||||
Percentage of principal amount at issuance | 99.71 | ||||||||
Senior Notes | 398,852 | $ 398,852 | |||||||
3.00% Medium-Term Notes due August 2031 | Treasury Lock | |||||||||
Secured Debt | |||||||||
Medium-term notes | $ 150,000 | ||||||||
Weighted average interest rate (as a percent) | 3.01% | ||||||||
3.70% Term Notes Due October 2020 | |||||||||
Secured Debt | |||||||||
Make-whole amount | $ 5,400 | ||||||||
Interest rate of medium-term notes | 3.70% | ||||||||
Redemption of debt | $ 300,000 | ||||||||
Senior Notes | 299,986 | ||||||||
Unsecured Commercial Bank Credit Facility | |||||||||
Secured Debt | |||||||||
Credit facilities with aggregate commitment | 2,000,000 | 2,000,000 | |||||||
Unsecured Commercial Bank Credit Facility | Unsecured Revolving credit facility due 2023 | |||||||||
Secured Debt | |||||||||
Credit facilities with aggregate commitment | $ 1,100,000 | $ 1,100,000 | |||||||
Number of Extensions of loan | loan | 2 | 2 | |||||||
Extension period of option on loan | 6 months | ||||||||
Unsecured Commercial Bank Credit Facility | Revolving Credit Facility | |||||||||
Secured Debt | |||||||||
Credit facilities with aggregate commitment | $ 1,100,000 | $ 1,100,000 | 1,100,000 | ||||||
United Dominion Realty L.P. | |||||||||
Secured Debt | |||||||||
Notes payable maximum interest rates range | 3.63% | 3.63% | |||||||
Principal outstanding | $ 99,064 | $ 99,064 | 26,929 | ||||||
Interest rate at end of the period | 2.85% | ||||||||
Secured Debt | 99,064 | $ 99,064 | 26,929 | ||||||
United Dominion Realty L.P. | Fixed Rate Debt | |||||||||
Secured Debt | |||||||||
Principal outstanding | 72,130 | $ 72,130 | |||||||
Interest rate at end of the period | 3.10% | ||||||||
United Dominion Realty L.P. | Mortgages Notes Payable | |||||||||
Secured Debt | |||||||||
Principal outstanding | $ 72,500 | $ 72,500 | |||||||
Interest rate of medium-term notes | 3.10% | 3.10% | |||||||
United Dominion Realty L.P. | Mortgages Notes Payable | Fixed Rate Debt | |||||||||
Secured Debt | |||||||||
Principal outstanding | $ 72,500 | $ 72,500 | |||||||
Interest rate at end of the period | 3.10% | ||||||||
United Dominion Realty L.P. | Tax-exempt secured notes payable | Variable Rate Debt | |||||||||
Secured Debt | |||||||||
Principal outstanding | 27,000 | $ 27,000 | 27,000 | ||||||
Interest rate at end of the period | 2.07% | ||||||||
United Dominion Realty L.P. | Unsecured Commercial Bank Credit Facility | |||||||||
Secured Debt | |||||||||
Long-term commercial paper | $ 500,000 | $ 500,000 | |||||||
Fannie Mae credit facilities | Fair Value, Measurements, Recurring | Carrying Amount | Fannie Mae credit facilities | Fixed Rate Debt | |||||||||
Secured Debt | |||||||||
Principal outstanding | 90,000 | ||||||||
Mortgages Notes Payable | Fixed Rate Debt | Maximum | |||||||||
Secured Debt | |||||||||
Notes payable maximum interest rates range | 4.35% | 4.35% | |||||||
Mortgages Notes Payable | Fixed Rate Debt | Minimum | |||||||||
Secured Debt | |||||||||
Notes payable maximum interest rates range | 2.70% | 2.70% | |||||||
Mortgages Notes Payable | Fair Value, Measurements, Recurring | Carrying Amount | Mortgages Notes Payable | Fixed Rate Debt | |||||||||
Secured Debt | |||||||||
Principal outstanding | $ 575,965 | $ 575,965 | $ 417,989 |
INCOME_(LOSS) PER SHARE (Detail
INCOME/(LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Aug. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Jul. 31, 2017 | |
Antidilutive securities | ||||||||
Net income/(loss) | $ 29,422 | $ 20,258 | $ 94,342 | $ 131,927 | ||||
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | (2,162) | (1,616) | (6,871) | (10,819) | ||||
Net (income)/loss attributable to noncontrolling interests | (56) | (32) | (145) | (141) | ||||
Net income/(loss) attributable to UDR, Inc. | 27,204 | 18,610 | 87,326 | 120,967 | ||||
Distributions to preferred stockholders - Series E (Convertible) | (1,031) | (971) | (3,073) | (2,897) | ||||
Net income/(loss) attributable to common stockholders | $ 26,173 | $ 17,639 | $ 84,253 | $ 118,070 | ||||
Denominator for earnings per share - basic and diluted: | ||||||||
Weighted average common shares outstanding | 288,957,000 | 268,034,000 | 282,866,000 | 267,873,000 | ||||
Non-vested restricted stock awards | (251,000) | (307,000) | (268,000) | (344,000) | ||||
Denominator for basic income/(loss) per share | 288,706,000 | 267,727,000 | 282,598,000 | 267,529,000 | ||||
Incremental shares issuable from assumed conversion of stock options, unvested LTIP Units, unvested restricted stock, and shares issuable upon settlement of forward purchase agreements | 823,000 | 1,134,000 | 694,000 | 1,491,000 | ||||
Denominator for diluted income/(loss) per share | 289,529,000 | 268,861,000 | 283,292,000 | 269,020,000 | ||||
Income/(loss) per weighted average common share - basic | $ 0.09 | $ 0.07 | $ 0.30 | $ 0.44 | ||||
Income/(loss) per weighted average common share - diluted | $ 0.09 | $ 0.07 | $ 0.30 | $ 0.44 | ||||
Number of shares authorized | 350,000,000 | 350,000,000 | 350,000,000 | 350,000,000 | ||||
Number of shares sold | 7,500,000 | |||||||
Aggregate gross proceeds | $ 349,900 | $ 662,009 | ||||||
Weighted average price per share | $ 46.65 | |||||||
Aggregate net proceeds from sales, after deducting related costs | $ 349,800 | $ 449,137 | $ 662,009 | |||||
OP/DownREIT Units | ||||||||
Antidilutive securities | ||||||||
Antidilutive securities | 22,211,000 | 24,558,000 | 23,068,000 | 24,546,000 | ||||
Convertible preferred stock | ||||||||
Antidilutive securities | ||||||||
Antidilutive securities | 3,011,000 | 3,011,000 | 3,011,000 | 3,011,000 | ||||
Stock options, unvested LTIP Units, unvested restricted stock, and forward sales shares | ||||||||
Antidilutive securities | ||||||||
Antidilutive securities | 823,000 | 1,134,000 | 694,000 | 1,491,000 | ||||
ATM | ||||||||
Denominator for earnings per share - basic and diluted: | ||||||||
Number of shares authorized | 20,000,000 | |||||||
Number of shares sold | 2,200,000 | 7,000,000 | ||||||
Aggregate gross proceeds | $ 100,500 | $ 316,500 | ||||||
Weighted average price per share | $ 46.19 | $ 45.29 | ||||||
Commissions paid to sales agents | $ 1,100 | $ 4,000 | ||||||
Aggregate net proceeds from sales, after deducting related costs | $ 99,400 | $ 312,300 | ||||||
Shares of common stock available for future issuance | 13,000,000 | 13,000,000 | 13,000,000 | |||||
Forward Sales Agreement | ||||||||
Denominator for earnings per share - basic and diluted: | ||||||||
Number of shares authorized | 1,300,000 | 1,300,000 | 1,300,000 | |||||
Weighted average price per share | $ 47.68 | |||||||
Shares settled | 0 |
NONCONTROLLING INTERESTS (Detai
NONCONTROLLING INTERESTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Redeemable noncontrolling interests in the Operating Partnership | ||||
Minimum holding period prior to redemption (in years) | 1 year | |||
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, beginning of year | $ 972,740 | |||
Mark-to-market adjustment to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | $ 85,235 | $ 77,357 | 222,405 | $ 62,655 |
Conversion of OP Units/DownREIT Units to Common Stock | (119,338) | |||
Net income/(loss) attributable o redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | 2,162 | 1,616 | 6,871 | 10,819 |
Distributions to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | (24,509) | |||
Vesting of Long-Term Incentive Plan Units | 14,742 | |||
Allocation of other comprehensive income/(loss) | (730) | |||
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership, end of year | 1,072,181 | 1,072,181 | ||
Net income/(loss) attributable to noncontrolling interests | 40 | 21 | 97 | 107 |
Maximum | ||||
Redeemable noncontrolling interests in the Operating Partnership | ||||
Net income/(loss) attributable to noncontrolling interests | $ (100) | $ (100) | $ (100) | $ (100) |
LTIP Units | Minimum | ||||
Redeemable noncontrolling interests in the Operating Partnership | ||||
Vesting period | 1 year | |||
LTIP Units | Maximum | ||||
Redeemable noncontrolling interests in the Operating Partnership | ||||
Vesting period | 3 years |
FAIR VALUE OF DERIVATIVES AND_3
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value | ||
Notes receivable, net | $ 37,899 | $ 42,259 |
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Gross Amounts of Recognized Assets | 730 | 4,757 |
Gross Amounts of Recognized Liabilities | 469 | 356 |
Unsecured debt instruments | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 1,072,181 | 972,740 |
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | 1,072,181 | 972,740 |
Carrying Amount | Fair Value, Measurements, Recurring | ||
Fair Value | ||
Notes receivable, net | 37,899 | 42,259 |
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Total assets | 38,629 | 47,016 |
Unsecured debt instruments | ||
Total liabilities | 3,958,139 | 3,566,018 |
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | 1,072,181 | 972,740 |
Carrying Amount | Interest rate contracts | Fair Value, Measurements, Recurring | ||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Derivative Asset Designated as Hedging Instrument, Fair Value | 730 | 4,757 |
Derivatives - Interest rate contracts (b) | 469 | 356 |
Carrying Amount | Commercial bank | Fair Value, Measurements, Recurring | ||
Unsecured debt instruments | ||
Unsecured debt instruments | 34,447 | 16 |
Commercial paper program | 60,000 | 101,115 |
Carrying Amount | Senior Unsecured Notes | Fair Value, Measurements, Recurring | ||
Unsecured debt instruments | ||
Unsecured debt instruments | 3,260,258 | 2,861,842 |
Fair Value | Fair Value, Measurements, Recurring | ||
Fair Value | ||
Notes receivable, net | 42,613 | 45,026 |
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Total assets | 43,343 | 49,783 |
Unsecured debt instruments | ||
Total liabilities | 4,106,852 | 3,532,104 |
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | 1,072,181 | 972,740 |
Fair Value | Interest rate contracts | Fair Value, Measurements, Recurring | ||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Derivative Asset Designated as Hedging Instrument, Fair Value | 730 | 4,757 |
Derivatives - Interest rate contracts (b) | 469 | 356 |
Fair Value | Commercial bank | Fair Value, Measurements, Recurring | ||
Unsecured debt instruments | ||
Unsecured debt instruments | 34,447 | 16 |
Commercial paper program | 60,000 | 101,115 |
Fair Value | Senior Unsecured Notes | Fair Value, Measurements, Recurring | ||
Unsecured debt instruments | ||
Unsecured debt instruments | 3,415,618 | 2,829,390 |
Fair Value | Level 2 | Fair Value, Measurements, Recurring | ||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Total assets | 730 | 4,757 |
Unsecured debt instruments | ||
Total liabilities | 469 | 356 |
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | 1,072,181 | 972,740 |
Fair Value | Level 2 | Interest rate contracts | Fair Value, Measurements, Recurring | ||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Derivative Asset Designated as Hedging Instrument, Fair Value | 730 | 4,757 |
Derivatives - Interest rate contracts (b) | 469 | 356 |
Fair Value | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value | ||
Notes receivable, net | 42,613 | 45,026 |
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Total assets | 42,613 | 45,026 |
Unsecured debt instruments | ||
Total liabilities | 4,106,383 | 3,531,748 |
Fair Value | Level 3 | Commercial bank | Fair Value, Measurements, Recurring | ||
Unsecured debt instruments | ||
Unsecured debt instruments | 34,447 | 16 |
Commercial paper program | 60,000 | 101,115 |
Fair Value | Level 3 | Senior Unsecured Notes | Fair Value, Measurements, Recurring | ||
Unsecured debt instruments | ||
Unsecured debt instruments | 3,415,618 | 2,829,390 |
Tax-exempt secured notes payable | Variable Rate Debt | ||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Secured debt including debt on real estate held for sale | 27,000 | 94,700 |
Tax-exempt secured notes payable | Variable Rate Debt | Carrying Amount | Tax-exempt secured notes payable | Fair Value, Measurements, Recurring | ||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Secured debt including debt on real estate held for sale | 27,000 | 94,700 |
Tax-exempt secured notes payable | Variable Rate Debt | Fair Value | Tax-exempt secured notes payable | Fair Value, Measurements, Recurring | ||
Debt instruments - fair value | ||
Fair value | 27,000 | 94,700 |
Tax-exempt secured notes payable | Variable Rate Debt | Fair Value | Level 3 | Tax-exempt secured notes payable | Fair Value, Measurements, Recurring | ||
Debt instruments - fair value | ||
Fair value | 27,000 | 94,700 |
Fannie Mae credit facilities | Fixed Rate Debt | ||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Secured debt including debt on real estate held for sale | 90,000 | |
Fannie Mae credit facilities | Fixed Rate Debt | Carrying Amount | Fannie Mae credit facilities | Fair Value, Measurements, Recurring | ||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Secured debt including debt on real estate held for sale | 90,000 | |
Fannie Mae credit facilities | Fixed Rate Debt | Fair Value | Fannie Mae credit facilities | Fair Value, Measurements, Recurring | ||
Debt instruments - fair value | ||
Fair value | 90,213 | |
Fannie Mae credit facilities | Fixed Rate Debt | Fair Value | Level 3 | Fannie Mae credit facilities | Fair Value, Measurements, Recurring | ||
Debt instruments - fair value | ||
Fair value | 90,213 | |
Mortgages Notes Payable | Fixed Rate Debt | ||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Secured debt including debt on real estate held for sale | 575,965 | 417,989 |
Mortgages Notes Payable | Fixed Rate Debt | Carrying Amount | Mortgages Notes Payable | Fair Value, Measurements, Recurring | ||
Estimated fair values of the financial instruments either recorded or disclosed on a recurring basis | ||
Secured debt including debt on real estate held for sale | 575,965 | 417,989 |
Mortgages Notes Payable | Fixed Rate Debt | Fair Value | Mortgages Notes Payable | Fair Value, Measurements, Recurring | ||
Debt instruments - fair value | ||
Fair value | 569,318 | 416,314 |
Mortgages Notes Payable | Fixed Rate Debt | Fair Value | Level 3 | Mortgages Notes Payable | Fair Value, Measurements, Recurring | ||
Debt instruments - fair value | ||
Fair value | $ 569,318 | $ 416,314 |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITY - Interest Rate Derivatives (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019USD ($)instrument | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)instrument | Sep. 30, 2018USD ($) | Oct. 30, 2019USD ($) | Jul. 31, 2019USD ($) | Jul. 02, 2019USD ($) | Jun. 30, 2019USD ($)instrument | |
Derivatives | ||||||||
Unrealized holding gain/(loss) | $ (659) | $ 2,320 | $ (7,181) | $ 4,312 | ||||
Unsecured Commercial Bank Credit Facility | ||||||||
Derivatives | ||||||||
Total revolving credit facility | $ 2,000,000 | $ 2,000,000 | ||||||
3.20% Medium-Term Notes due January 2030 | ||||||||
Derivatives | ||||||||
Medium-term notes | $ 100,000 | $ 300,000 | $ 300,000 | |||||
Designated as Hedging Instrument | Interest rate swaps | ||||||||
Derivatives | ||||||||
Number of Interest Rate Derivatives Held | instrument | 4 | 4 | ||||||
Notional | $ 315,000 | $ 315,000 | ||||||
Designated as Hedging Instrument | Interest rate swaps subsequently terminated and settled | ||||||||
Derivatives | ||||||||
Number of Interest Rate Derivatives Held | instrument | 2 | |||||||
Notional | $ 75,000 | |||||||
Not Designated as Hedging Instrument | Interest rate caps | ||||||||
Derivatives | ||||||||
Number of Interest Rate Derivatives Held | instrument | 1 | 1 | ||||||
Notional | $ 19,880 | $ 19,880 |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITY - Undesignated Interest Rate Derivatives (Details) - Interest rate contracts - Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other assets | ||
Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheet | ||
Derivative Asset Designated as Hedging Instrument, Fair Value | $ 730 | $ 4,757 |
Other liabilities | ||
Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheet | ||
Derivative Liability Designated as Hedging Instrument, Fair Value | $ 469 | $ 356 |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITY - Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Effect of derivative instruments on the Consolidated Statements of Operations | ||||
Unrealized holding gain/(loss) | $ (659) | $ 2,320 | $ (7,181) | $ 4,312 |
Interest rate contracts | Interest expense | Cash Flow Hedging | ||||
Effect of derivative instruments on the Consolidated Statements of Operations | ||||
Unrealized holding gain/(loss) | (659) | 2,320 | (7,181) | 4,312 |
Gain/(Loss) reclassified from Accumulated OCI in Interest Expense | 624 | 564 | 2,504 | 1,162 |
Interest rate contracts | Other income/(expense) | ||||
Effect of derivative instruments on the Consolidated Statements of Operations | ||||
Gain/(Loss) recognized in Interest Income and Other Income/(Expense), net | $ 0 | $ 0 | $ 0 | $ 0 |
DERIVATIVES AND HEDGING ACTIV_6
DERIVATIVES AND HEDGING ACTIVITY - Effectiveness (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivatives and hedging activity | ||||
Estimated additional accumulated other comprehensive Income/(Loss) transferred to interest expense | $ 9,800 | $ 9,800 | ||
Total amount of Interest expense presented on the Consolidated Statements of Operations | 42,523 | $ 34,401 | 110,482 | $ 95,942 |
Payment required to pay for contract termination | 500 | 500 | ||
Interest rate swaps | Designated as Hedging Instrument | ||||
Fair value | ||||
Notional | $ 315,000 | $ 315,000 |
DERIVATIVES AND HEDGING ACTIV_7
DERIVATIVES AND HEDGING ACTIVITY - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Offsetting derivative assets | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheets (a) | $ 730 | $ 4,757 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (371) | |
Net Amount | 359 | 4,757 |
Offsetting derivative liabilities | ||
Gross Amounts of Recognized Liabilities | 469 | 356 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets (b) | 469 | 356 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (371) | |
Net Amount | $ 98 | $ 356 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock based compensation | ||||
Stock based compensation expense | $ 4.5 | $ 3.6 | $ 13 | $ 10.7 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)community | Sep. 30, 2018USD ($) | |
Real estate properties | ||
Development costs and capital expenditures incurred but not yet paid | $ 12,174 | $ 23,437 |
Number of communities owned (in communities) | community | 138 | |
Costs Incurred to Date | $ 114,536 | |
UDR's Remaining Commitment | 157,459 | |
King of Prussia | ||
Real estate properties | ||
Contractual purchase price commitment | 14,800 | |
Deposit on purchase | $ 800 | |
Wholly owned - under development | ||
Real estate properties | ||
Number of communities owned (in communities) | community | 1 | |
Costs Incurred to Date | $ 21,845 | |
UDR's Remaining Commitment | $ 75,655 | |
Wholly owned - redevelopment | ||
Real estate properties | ||
Number of communities owned (in communities) | community | 2 | |
Costs Incurred to Date | $ 11,582 | |
UDR's Remaining Commitment | $ 23,918 | |
Unconsolidated joint ventures -development | ||
Real estate properties | ||
Number of communities owned (in communities) | community | 1 | |
Costs Incurred to Date | $ 14,402 | |
UDR's Remaining Commitment | $ 21,496 | |
Preferred Equity Investments | ||
Real estate properties | ||
Number of communities owned (in communities) | community | 2 | |
Costs Incurred to Date | $ 53,781 | |
UDR's Remaining Commitment | 27,390 | |
Other investments | ||
Real estate properties | ||
Costs Incurred to Date | 12,926 | |
UDR's Remaining Commitment | $ 9,000 |
REPORTABLE SEGMENTS (Details)
REPORTABLE SEGMENTS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2019USD ($)item | Sep. 30, 2018USD ($)item | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2019USD ($)item | Sep. 30, 2019USD ($)home | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segments | |||||||||||
Same store communities | 38,177 | 38,177 | 37,959 | 38,177 | 37,959 | ||||||
Reportable Segments | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Condition for Community considered to have stabilized occupancy | 90% | ||||||||||
Time to maintain percent occupancy to be considered a community | 3 months | ||||||||||
Practical expedient, single lease component | true | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | |||||||||||
Rental income | $ 289,008 | $ 263,256 | $ 835,393 | $ 770,373 | |||||||
Reconciling items: | |||||||||||
Joint venture management and other fees | $ 6,386 | $ 2,888 | 11,982 | $ 8,819 | |||||||
Type of revenue | udr:ManagementAndOtherFeesMember | udr:ManagementAndOtherFeesMember | udr:ManagementAndOtherFeesMember | udr:ManagementAndOtherFeesMember | |||||||
Property management | $ (8,309) | $ (7,240) | (24,018) | $ (21,185) | |||||||
Other operating expenses | (2,751) | (3,314) | (11,132) | (8,148) | |||||||
Real estate depreciation and amortization | (127,391) | (107,881) | (357,793) | (322,537) | |||||||
General and administrative | (12,197) | (11,896) | (37,002) | (36,028) | |||||||
Casualty-related (charges)/recoveries, net | 1,088 | (678) | 842 | (2,364) | |||||||
Other depreciation and amortization | (1,619) | (1,682) | (4,953) | (5,057) | |||||||
Gain/(loss) on sale of real estate owned | 5,282 | 70,300 | |||||||||
Income/(loss) from unconsolidated entities | 12,713 | (1,382) | 19,387 | (5,091) | |||||||
Interest expense | (42,523) | (34,401) | (110,482) | (95,942) | |||||||
Interest and other income/(expense), net | 1,875 | 1,188 | 12,998 | 5,075 | |||||||
Tax (provision)/benefit, net | (1,499) | (158) | (3,836) | (618) | |||||||
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | (2,162) | (1,616) | (6,871) | (10,819) | |||||||
Net (income)/loss attributable to noncontrolling interests | (56) | (32) | (145) | (141) | |||||||
Net income/(loss) attributable to UDR, Inc. | 27,204 | 18,610 | 87,326 | 120,967 | |||||||
Reportable apartment home segment assets: | |||||||||||
Total segment assets | 11,564,395 | $ 11,564,395 | $ 11,564,395 | $ 11,564,395 | $ 11,564,395 | $ 11,564,395 | 11,564,395 | $ 10,196,159 | |||
Accumulated depreciation | (4,000,608) | (4,000,608) | (4,000,608) | (4,000,608) | (4,000,608) | (4,000,608) | (4,000,608) | (3,654,160) | |||
Total real estate owned, net of accumulated depreciation | 7,563,787 | 7,563,787 | 7,563,787 | 7,563,787 | 7,563,787 | 7,563,787 | 7,563,787 | 6,541,999 | |||
Reconciling items: | |||||||||||
Cash and cash equivalents | 1,895 | 1,084 | 1,895 | 1,895 | 1,895 | 1,895 | 1,895 | 1,895 | 1,084 | 185,216 | $ 2,038 |
Restricted cash | 21,646 | 26,996 | 21,646 | 21,646 | 21,646 | 21,646 | 21,646 | 21,646 | 26,996 | 23,675 | $ 19,792 |
Notes receivable, net | 37,899 | 37,899 | 37,899 | 37,899 | 37,899 | 37,899 | 37,899 | 42,259 | |||
Investment in and advances to unconsolidated joint ventures, net | 791,180 | 791,180 | 791,180 | 791,180 | 791,180 | 791,180 | 791,180 | 780,869 | |||
Operating lease right-of-use assets | 135,889 | 135,889 | 135,889 | 135,889 | 135,889 | 135,889 | 135,889 | ||||
Other assets | 145,301 | 145,301 | 145,301 | 145,301 | 145,301 | 145,301 | 145,301 | 137,710 | |||
Total consolidated assets | 8,697,597 | 8,697,597 | 8,697,597 | 8,697,597 | 8,697,597 | 8,697,597 | 8,697,597 | 7,711,728 | |||
Same Store Communities West Region | |||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | |||||||||||
Lease revenue | 99,316 | 95,447 | 293,294 | 281,722 | |||||||
Other revenue | 7,869 | 7,168 | 23,488 | 21,567 | |||||||
Rental income | 107,185 | 102,615 | 316,782 | 303,289 | |||||||
Reportable apartment home segment NOI | 81,170 | 77,321 | 240,442 | 229,129 | |||||||
Reportable apartment home segment assets: | |||||||||||
Total segment assets | 3,797,149 | 3,797,149 | 3,797,149 | 3,797,149 | 3,797,149 | 3,797,149 | 3,797,149 | 3,763,366 | |||
Same Store Communities Mid-Atlantic Region | |||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | |||||||||||
Lease revenue | 52,826 | 51,291 | 157,179 | 152,867 | |||||||
Other revenue | 4,376 | 4,032 | 12,958 | 11,944 | |||||||
Rental income | 57,202 | 55,323 | 170,137 | 164,811 | |||||||
Reportable apartment home segment NOI | 39,850 | 38,220 | 119,075 | 114,465 | |||||||
Reportable apartment home segment assets: | |||||||||||
Total segment assets | 2,338,963 | 2,338,963 | 2,338,963 | 2,338,963 | 2,338,963 | 2,338,963 | 2,338,963 | 2,317,369 | |||
Same Store Communities Southeast Region | |||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | |||||||||||
Lease revenue | 28,540 | 27,773 | 84,551 | 81,554 | |||||||
Other revenue | 3,438 | 3,211 | 10,423 | 9,918 | |||||||
Rental income | 31,978 | 30,984 | 94,974 | 91,472 | |||||||
Reportable apartment home segment NOI | 22,133 | 21,597 | 66,301 | 63,806 | |||||||
Reportable apartment home segment assets: | |||||||||||
Total segment assets | 799,739 | 799,739 | 799,739 | 799,739 | 799,739 | 799,739 | 799,739 | 779,310 | |||
Same Store Communities Northeast Region | |||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | |||||||||||
Lease revenue | 30,196 | 29,491 | 89,650 | 87,776 | |||||||
Other revenue | 1,321 | 1,226 | 3,753 | 3,422 | |||||||
Rental income | 31,517 | 30,717 | 93,403 | 91,198 | |||||||
Reportable apartment home segment NOI | 20,560 | 20,640 | 63,012 | 62,710 | |||||||
Reportable apartment home segment assets: | |||||||||||
Total segment assets | 1,498,500 | 1,498,500 | 1,498,500 | 1,498,500 | 1,498,500 | 1,498,500 | 1,498,500 | 1,491,994 | |||
Same Store Communities Southwest Region | |||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | |||||||||||
Lease revenue | 15,451 | 15,060 | 40,705 | 39,586 | |||||||
Other revenue | 1,527 | 1,525 | 4,100 | 3,986 | |||||||
Rental income | 16,978 | 16,585 | 44,805 | 43,572 | |||||||
Reportable apartment home segment NOI | 10,449 | 9,899 | 26,995 | 25,760 | |||||||
Reportable apartment home segment assets: | |||||||||||
Total segment assets | 595,982 | 595,982 | 595,982 | 595,982 | 595,982 | 595,982 | 595,982 | 589,188 | |||
Non-Mature communities/Other | |||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | |||||||||||
Lease revenue | 40,975 | 24,237 | 106,499 | 66,906 | |||||||
Other revenue | 3,173 | 2,795 | 8,793 | 9,125 | |||||||
Rental income | 44,148 | 27,032 | 115,292 | 76,031 | |||||||
Reportable apartment home segment NOI | 29,487 | 17,137 | 77,242 | 48,833 | |||||||
Reportable apartment home segment assets: | |||||||||||
Total segment assets | 2,534,062 | $ 2,534,062 | $ 2,534,062 | $ 2,534,062 | $ 2,534,062 | $ 2,534,062 | 2,534,062 | $ 1,254,932 | |||
Total Communities | |||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | |||||||||||
Lease revenue | 267,304 | 243,299 | 771,878 | 710,411 | |||||||
Other revenue | 21,704 | 19,957 | 63,515 | 59,962 | |||||||
Rental income | 289,008 | 263,256 | 835,393 | 770,373 | |||||||
Reportable apartment home segment NOI | $ 203,649 | $ 184,814 | $ 593,067 | $ 544,703 | |||||||
Taxable REIT Subsidiaries | |||||||||||
Reportable Segments | |||||||||||
Management fee (as a percent) | 2.875% |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNITED DOMINION REALTY, L.P.) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Real estate owned: | ||
Real estate held for investment | $ 11,542,550 | $ 10,196,159 |
Less: accumulated depreciation | (4,000,608) | (3,654,160) |
Total real estate owned, net of accumulated depreciation | 7,563,787 | 6,541,999 |
Cash and cash equivalents | 1,895 | 185,216 |
Restricted cash | 21,646 | 23,675 |
Investment in unconsolidated entities | 791,180 | 780,869 |
Operating lease right-of-use assets | 135,889 | |
Other assets | 145,301 | 137,710 |
Total assets | 8,697,597 | 7,711,728 |
LIABILITIES AND CAPITAL | ||
Secured debt, net | 600,624 | 601,227 |
Operating lease liabilities | 130,135 | |
Real estate taxes payable | 42,031 | 20,608 |
Accrued interest payable | 27,577 | 38,747 |
Security deposits and prepaid rent | 36,382 | 35,060 |
Distributions payable | 108,939 | 97,666 |
Accounts payable, accrued expenses, and other liabilities | 72,680 | 76,343 |
Total liabilities | 4,353,641 | 3,816,211 |
Commitments and contingencies (Note 11) | ||
Partners' capital: | ||
Total liabilities and equity | 8,697,597 | 7,711,728 |
United Dominion Realty L.P. | ||
Real estate owned: | ||
Real estate held for investment | 3,861,754 | 3,811,985 |
Less: accumulated depreciation | (1,762,168) | (1,658,161) |
Total real estate owned, net of accumulated depreciation | 2,099,586 | 2,153,824 |
Cash and cash equivalents | 40 | 125 |
Restricted cash | 14,637 | 13,563 |
Investment in unconsolidated entities | 82,269 | 103,026 |
Operating lease right-of-use assets | 135,766 | |
Other assets | 23,321 | 34,052 |
Total assets | 2,355,619 | 2,304,590 |
LIABILITIES AND CAPITAL | ||
Secured debt, net | 99,064 | 26,929 |
Notes payable due to the General Partner | 623,967 | 700,115 |
Operating lease liabilities | 130,013 | |
Real estate taxes payable | 11,747 | 2,699 |
Accrued interest payable | 213 | 32 |
Security deposits and prepaid rent | 14,878 | 15,250 |
Distributions payable | 63,367 | 59,461 |
Accounts payable, accrued expenses, and other liabilities | 12,153 | 14,215 |
Total liabilities | 955,402 | 818,701 |
Commitments and contingencies (Note 11) | ||
Partners' capital: | ||
General partner: 110,883 OP Units outstanding at September 30, 2019 and December 31, 2018 | 883 | 950 |
Limited partners: 183,952,659 and 183,525,660 OP Units outstanding at September 30, 2019 and December 31, 2018, respectively | 1,381,446 | 1,471,120 |
Total partners' capital | 1,382,329 | 1,472,070 |
Noncontrolling interests | 17,888 | 13,819 |
Total capital | 1,400,217 | 1,485,889 |
Total liabilities and equity | $ 2,355,619 | $ 2,304,590 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNITED DOMINION REALTY, L.P.) (Parenthetical) - shares | Sep. 30, 2019 | Dec. 31, 2018 |
Partners' capital: | ||
Operating Partnership units outstanding related to limited partner | 184,063,542 | 183,636,543 |
United Dominion Realty L.P. | ||
Partners' capital: | ||
OP units outstanding related to general partner | 110,883 | 110,883 |
Operating Partnership units outstanding related to limited partner | 183,952,659 | 183,525,660 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNITED DOMINION REALTY, L.P.) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUES: | ||||
Rental income | $ 289,008 | $ 263,256 | $ 835,393 | $ 770,373 |
OPERATING EXPENSES: | ||||
Property operating and maintenance | 46,869 | 44,090 | 131,702 | 126,129 |
Real estate taxes and insurance | 38,490 | 34,352 | 110,624 | 99,541 |
Property management | 8,309 | 7,240 | 24,018 | 21,185 |
Other operating expenses | 2,751 | 3,314 | 11,132 | 8,148 |
Real estate depreciation and amortization | 127,391 | 107,881 | 357,793 | 322,537 |
General and administrative | 12,197 | 11,896 | 37,002 | 36,028 |
Casualty-related charges/(recoveries), net | (1,088) | 678 | (842) | 2,364 |
Total operating expenses | 236,538 | 211,133 | 676,382 | 620,989 |
Gain/(loss) on sale of real estate owned | 5,282 | 70,300 | ||
Operating income | 58,856 | 55,011 | 176,275 | 228,503 |
Income/(loss) from unconsolidated entities | 12,713 | (1,382) | 19,387 | (5,091) |
Interest expense | (42,523) | (34,401) | (110,482) | (95,942) |
Net income/(loss) | 29,422 | 20,258 | 94,342 | 131,927 |
United Dominion Realty L.P. | ||||
REVENUES: | ||||
Rental income | 111,700 | 109,539 | 330,384 | 323,397 |
OPERATING EXPENSES: | ||||
Property operating and maintenance | 17,835 | 17,412 | 50,945 | 50,535 |
Real estate taxes and insurance | 13,033 | 11,979 | 37,788 | 34,890 |
Property management | 3,211 | 3,012 | 9,498 | 8,893 |
Other operating expenses | 2,301 | 2,347 | 7,123 | 6,098 |
Real estate depreciation and amortization | 35,155 | 35,043 | 104,730 | 108,906 |
General and administrative | 4,066 | 4,143 | 12,878 | 12,997 |
Casualty-related charges/(recoveries), net | (1,088) | (10) | (1,169) | 906 |
Total operating expenses | 74,513 | 73,926 | 221,793 | 223,225 |
Gain/(loss) on sale of real estate owned | 70,300 | |||
Operating income | 37,187 | 35,613 | 108,591 | 170,472 |
Income/(loss) from unconsolidated entities | (2,383) | (2,378) | (6,917) | (10,102) |
Interest expense | (538) | (2,047) | (889) | (6,050) |
Interest expense on notes payable due to the General Partner | (6,983) | (3,053) | (21,358) | (9,159) |
Net income/(loss) | 27,283 | 28,135 | 79,427 | 145,161 |
Net (income)/loss attributable to noncontrolling interests | (448) | (440) | (1,252) | (1,278) |
Net income/(loss) attributable to OP unitholders | $ 26,835 | $ 27,695 | $ 78,175 | $ 143,883 |
Income/(loss) per OP unit- basic and diluted: | ||||
Net income/(loss) per weighted average OP Unit - basic and diluted | $ 0.15 | $ 0.15 | $ 0.42 | $ 0.78 |
Weighted average OP Units outstanding - basic and diluted | 184,064 | 183,637 | 184,024 | 183,599 |
CONSOLIDATED STATEMENTS OF CH_3
CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL (UNITED DOMINION REALTY, L.P.) (Unaudited). - United Dominion Realty L.P. - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Beginning Balance | $ 1,429,738 | $ 1,784,720 | $ 1,485,889 | $ 1,875,130 |
Net income/(loss) | 27,283 | 28,135 | 79,427 | 145,161 |
Distributions | (63,367) | (59,460) | (189,896) | (178,365) |
Long Term Incentive Plan Unit grants | 6,563 | 2,932 | 21,980 | 12,964 |
Net contributions/(distributions) to/(from) noncontrolling interests | 2,817 | |||
Net change in advances (to)/from the General Partner | (4,882) | (103,445) | ||
Ending Balance | 1,400,217 | 1,751,445 | 1,400,217 | 1,751,445 |
Advances (to)/from General Partner | ||||
Beginning Balance | 299,336 | 397,899 | ||
Net change in advances (to)/from the General Partner | (4,882) | (103,445) | ||
Ending Balance | 294,454 | 294,454 | ||
Total Partner's Capital | ||||
Beginning Balance | 1,412,298 | 1,471,610 | 1,472,070 | 1,464,295 |
Net income/(loss) | 26,835 | 27,695 | 78,175 | 143,883 |
Distributions | (63,367) | (59,460) | (189,896) | (178,365) |
Long Term Incentive Plan Unit grants | 6,563 | 2,932 | 21,980 | 12,964 |
Ending Balance | 1,382,329 | 1,442,777 | 1,382,329 | 1,442,777 |
Noncontrolling Interests | ||||
Beginning Balance | 17,440 | 13,774 | 13,819 | 12,936 |
Net income/(loss) | 448 | 440 | 1,252 | 1,278 |
Net contributions/(distributions) to/(from) noncontrolling interests | 2,817 | |||
Ending Balance | 17,888 | 14,214 | 17,888 | 14,214 |
Class A Limited Partner | ||||
Beginning Balance | 78,633 | 65,758 | 69,401 | 67,474 |
Net income/(loss) | 255 | 264 | 743 | 1,387 |
Distributions | (599) | (582) | (1,797) | (1,746) |
Adjustment to reflect limited partners' capital at redemption value | 6,632 | 5,380 | 16,574 | 3,705 |
Ending Balance | 84,921 | 70,820 | 84,921 | 70,820 |
Limited Partners and LTIP Units | ||||
Beginning Balance | 273,910 | 286,662 | 302,545 | 283,568 |
Net income/(loss) | 890 | 1,151 | 2,610 | 6,195 |
Distributions | (2,416) | (2,683) | (7,095) | (8,035) |
OP Unit redemptions for common shares of UDR | (78,622) | (416) | ||
Adjustment to reflect limited partners' capital at redemption value | 16,868 | 20,669 | 54,397 | 14,455 |
Long Term Incentive Plan Unit grants | 6,563 | 2,932 | 21,980 | 12,964 |
Ending Balance | 295,815 | 308,731 | 295,815 | 308,731 |
Limited Partner | ||||
Beginning Balance | 1,058,850 | 1,118,237 | 1,099,174 | 1,112,298 |
Net income/(loss) | 25,674 | 26,263 | 74,775 | 136,214 |
Distributions | (60,314) | (56,159) | (180,890) | (168,476) |
OP Unit redemptions for common shares of UDR | 78,622 | 416 | ||
Adjustment to reflect limited partners' capital at redemption value | (23,500) | (26,049) | (70,971) | (18,160) |
Ending Balance | 1,000,710 | 1,062,292 | 1,000,710 | 1,062,292 |
General Partner | ||||
Beginning Balance | 905 | 953 | 950 | 955 |
Net income/(loss) | 16 | 17 | 47 | 87 |
Distributions | (38) | (36) | (114) | (108) |
Ending Balance | $ 883 | $ 934 | $ 883 | $ 934 |
CONSOLIDATED STATEMENTS OF CA_4
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNITED DOMINION REALTY, L.P.) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities | ||
Net income/(loss) | $ 94,342 | $ 131,927 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||
Depreciation and amortization | 362,746 | 327,594 |
(Gain)/loss on sale of real estate owned | (5,282) | (70,300) |
(Income)/loss from unconsolidated entities | (19,387) | 5,091 |
Other | 14,098 | 2,108 |
Changes in operating assets and liabilities: | ||
(Increase)/decrease in operating assets | 49 | (13,199) |
Increase/(decrease) in operating liabilities | (6,814) | 9,961 |
Net cash provided by/(used in) operating activities | 456,876 | 406,724 |
Investing Activities | ||
Proceeds from sales of real estate investments, net | 38,000 | 89,433 |
Capital expenditures and other major improvements - real estate assets | (113,572) | (76,381) |
Distributions received from unconsolidated entities | 61,412 | 30,574 |
Net cash provided by/(used in) investing activities | (1,382,802) | (203,106) |
Financing Activities | ||
Proceeds from the issuance of secured debt | 162,500 | 80,000 |
Other | (4,039) | (36,317) |
Net cash provided by/(used in) financing activities | 740,576 | (197,368) |
Net increase/(decrease) in cash, cash equivalents, and restricted cash | (185,350) | 6,250 |
Cash, cash equivalents, and restricted cash, beginning of year | 208,891 | 21,830 |
Cash, cash equivalents, and restricted cash, end of period | 23,541 | 28,080 |
Supplemental Information: | ||
Interest paid during the period, net of amounts capitalized | 125,298 | 104,136 |
Non-cash transactions: | ||
Development costs and capital expenditures incurred but not yet paid | 12,174 | 23,437 |
Recognition of operating lease right-of-use assets | 94,349 | |
Recognition of operating lease liabilities | 88,336 | |
Right-of-use asset obtained in exhange for operating lease liability remeasurement | 42,143 | |
Dividends declared but not yet paid | 108,939 | 95,372 |
United Dominion Realty L.P. | ||
Operating Activities | ||
Net income/(loss) | 79,427 | 145,161 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||
Depreciation and amortization | 104,730 | 108,906 |
(Gain)/loss on sale of real estate owned | (70,300) | |
(Income)/loss from unconsolidated entities | 6,917 | 10,102 |
Other | 843 | 850 |
Changes in operating assets and liabilities: | ||
(Increase)/decrease in operating assets | 2,801 | (2,968) |
Increase/(decrease) in operating liabilities | 3,156 | 4,747 |
Net cash provided by/(used in) operating activities | 197,874 | 196,498 |
Investing Activities | ||
Proceeds from sales of real estate investments, net | 89,433 | |
Capital expenditures and other major improvements - real estate assets | (45,508) | (31,828) |
Distributions received from unconsolidated entities | 13,840 | 13,033 |
Net cash provided by/(used in) investing activities | (31,668) | 70,638 |
Financing Activities | ||
Advances (to)/from the General Partner, net | (256,972) | |
Proceeds from the issuance of secured debt | 72,500 | |
Issuance/(repayment) of notes payable to the General Partner | (231,011) | |
Distributions paid to partnership unitholders | (6,330) | (9,438) |
Other | (376) | |
Net cash provided by/(used in) financing activities | (165,217) | (266,410) |
Net increase/(decrease) in cash, cash equivalents, and restricted cash | 989 | 726 |
Cash, cash equivalents, and restricted cash, beginning of year | 13,688 | 12,872 |
Cash, cash equivalents, and restricted cash, end of period | 14,677 | 13,598 |
Supplemental Information: | ||
Interest paid during the period, net of amounts capitalized | 28,755 | 20,139 |
Non-cash transactions: | ||
Development costs and capital expenditures incurred but not yet paid | 4,520 | 3,472 |
Recognition of operating lease right-of-use assets | 94,174 | |
Recognition of operating lease liabilities | 88,161 | |
Right-of-use asset obtained in exhange for operating lease liability remeasurement | 42,143 | |
LTIP Unit grants | 21,980 | 12,964 |
Dividends declared but not yet paid | $ 63,367 | $ 59,461 |
CONSOLIDATED STATEMENTS OF CA_5
CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL (UNITED DOMINION REALTY, L.P.) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
The following reconciles cash, cash equivalents, and restricted cash to the total of the same amounts as shown above: | ||||
Cash and cash equivalents | $ 1,895 | $ 185,216 | $ 1,084 | $ 2,038 |
Restricted cash | 21,646 | 23,675 | 26,996 | 19,792 |
Total cash, cash equivalents, and restricted cash as shown above | 23,541 | 208,891 | 28,080 | 21,830 |
United Dominion Realty L.P. | ||||
The following reconciles cash, cash equivalents, and restricted cash to the total of the same amounts as shown above: | ||||
Cash and cash equivalents | 40 | 125 | 83 | 293 |
Restricted cash | 14,637 | 13,563 | 13,515 | 12,579 |
Total cash, cash equivalents, and restricted cash as shown above | $ 14,677 | $ 13,688 | $ 13,598 | $ 12,872 |
CONSOLIDATION AND BASIS OF PRES
CONSOLIDATION AND BASIS OF PRESENTATION (UNITED DOMINION REALTY, L.P.) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION Basis of Presentation UDR, Inc., collectively with our consolidated subsidiaries (“UDR,” the “Company,” “we,” “our,” or “us”), is a self-administered real estate investment trust, or REIT, that owns, operates, acquires, renovates, develops, redevelops, and manages apartment communities. The accompanying consolidated financial statements include the accounts of UDR and its subsidiaries, including United Dominion Realty, L.P. (the “Operating Partnership” or the “OP”) and UDR Lighthouse DownREIT L.P. (the “DownREIT Partnership”). As of September 30, 2019, there were 184,063,542 units in the Operating Partnership (“OP Units”) outstanding, of which 176,210,072 OP Units, or 95.7%, were owned by UDR and 7,853,470 OP Units, or 4.3%, were owned by outside limited partners. As of September 30, 2019, there were 32,367,380 units in the DownREIT Partnership (“DownREIT Units”) outstanding, of which 18,104,895, or 55.9%, were owned by UDR (including 13,470,651 DownREIT Units, or 41.6%, that were held by the Operating Partnership) and 14,262,485, or 44.1%, were owned by outside limited partners. The consolidated financial statements of UDR include the noncontrolling interests of the unitholders in the Operating Partnership and DownREIT Partnership. The accompanying interim unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments and eliminations necessary for the fair presentation of our financial position as of September 30, 2019, and results of operations for the three and nine months ended September 30, 2019 and 2018, have been included. Such adjustments are normal and recurring in nature. The interim results presented are not necessarily indicative of results that can be expected for a full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2018 appearing in UDR’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 19, 2019. The accompanying interim unaudited consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the interim unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company evaluated subsequent events through the date its financial statements were issued. No significant recognized or non-recognized subsequent events were noted other than those noted in Note 7, Secured and Unsecured Debt, Net Commitments and Contingencies |
United Dominion Realty L.P. | |
Entity information | |
BASIS OF PRESENTATION | 1. CONSOLIDATION AND BASIS OF PRESENTATION Basis of Presentation United Dominion Realty, L.P. (“UDR, L.P.,” the “Operating Partnership,” “we” or “our”) is a Delaware limited partnership, that owns, acquires, renovates, redevelops, manages, and disposes of multifamily apartment communities generally located in high barrier to entry markets located in the United States. The high barrier to entry markets are characterized by limited land for new construction, difficult and lengthy entitlement process, expensive single-family home prices and significant employment growth potential. UDR, L.P. is a subsidiary of UDR, Inc. (“UDR” or the “General Partner”), a self-administered real estate investment trust, or REIT, through which UDR conducts a significant portion of its business. During the three months ended September 30, 2019 and 2018, rental revenues of the Operating Partnership represented 39% and 42%, respectively, and for the nine months ended September 30, 2019 and 2018, 40% and 42%, respectively, of the General Partner’s consolidated rental revenues. As of September 30, 2019, the Operating Partnership’s apartment portfolio consisted of 52 communities located in 15 markets consisting of 16,434 apartment homes. Interests in UDR, L.P. are represented by operating partnership units (“OP Units”). The Operating Partnership’s net income is allocated to the partners, which is initially based on their respective distributions made during the year and secondly, their percentage interests. Distributions are made in accordance with the terms of the Amended and Restated Agreement of Limited Partnership of United Dominion Realty, L.P. (the “Operating Partnership Agreement”), on a per unit basis that is generally equal to the dividend per share on UDR’s common stock, which is publicly traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “UDR.” As of September 30, 2019, there were 184,063,542 OP Units outstanding, of which 176,210,072, or 95.7%, were owned by UDR and affiliated entities and 7,853,470, or 4.3%, were owned by non-affiliated limited partners. There were 183,636,543 OP Units outstanding as of December 31, 2018, of which 174,248,699, or 94.9%, were owned by UDR and affiliated entities and 9,387,844, or 5.1%, were owned by non-affiliated limited partners. See Note 10, Capital Structure The accompanying interim unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments and eliminations necessary for the fair presentation of our financial position as of September 30, 2019, and results of operations for the three and nine months ended September 30, 2019 and 2018, have been included. Such adjustments are normal and recurring in nature. The interim results presented are not necessarily indicative of results that can be expected for a full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2018 included in the Annual Report on Form 10-K filed by UDR and the Operating Partnership with the SEC on February 19, 2019. The accompanying interim unaudited consolidated statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the interim unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All intercompany accounts and transactions have been eliminated in consolidation. The Operating Partnership evaluated subsequent events through the date its financial statements were issued. No significant recognized or non-recognized subsequent events were noted other than those noted in Note 6, Debt, Net. |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (UNITED DOMINION REALTY, L.P.) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses, In February 2016, the FASB issued ASU 2016-02, Leases The Company elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Company also elected the short-term lease exception provided for in the standard and therefore only recognizes right-of-use assets and lease liabilities for leases with a term greater than one year. The Company recognized right-of-use assets of $94.3 million and lease liabilities of $88.3 million as of January 1, 2019 upon adoption of the standard. The right-of-use assets included $6.0 million of prepaid rent and intangible assets that was included within Other assets The lease liabilities represent the present value of the remaining minimum lease payments as of January 1, 2019 and primarily relate to ground leases for communities where we are the lessee. The right-of-use assets represent our right to use an underlying asset for the lease term, which are calculated utilizing the lease liabilities plus any prepaid lease payments and intangible assets for ground leases acquired in the purchase of real estate. Our right-of-use assets and related lease liabilities recognized as of January 1, 2019 may change as a result of updates to the projected future minimum lease payments. Certain of our ground lease agreements where we are the lessee have future minimum lease payments that reset in the future based upon a percentage of the fair market value of the land at the time of the reset. The Company will continue to recognize lease expense for these leases in a manner similar to previous accounting based on our election of the package of practical expedients. However, in the event we modify existing ground leases and/or enter into new ground leases subsequent to the adoption of the standard, such leases would likely be classified as finance leases under the standard and require expense recognition based on the effective interest method. Under the standard, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, subsequent to the adoption of the standard, we are now expensing non-incremental leasing costs as incurred. In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements Leases Principles of Consolidation The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Company first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. Real Estate Sales Gain Recognition For sale transactions resulting in a transfer of a controlling financial interest of a property, the Company generally derecognizes the related assets and liabilities from its Consolidated Balance Sheets and records the gain or loss in the period in which the transfer of control occurs. If control of the property has not transferred to the counterparty, the criteria for derecognition are not met and the Company will continue to recognize the related assets and liabilities on its Consolidated Balance Sheets. Sale transactions to entities in which the Company sells a controlling financial interest in a property but retains a noncontrolling interest are accounted for as partial sales. Partial sales resulting in a change in control are accounted for at fair value and a full gain or loss is recognized. Therefore, the Company will record a gain or loss on the partial interest sold, and the initial measurement of our retained interest will be accounted for at fair value. Sales of real estate to joint ventures or other noncontrolled investees are also accounted for at fair value and the Company will record a full gain or loss in the period the property is contributed. To the extent that the Company acquires a controlling financial interest in a property that it previously accounted for as an equity method investment, the Company will not remeasure its previously held interest if the acquisition is treated as an asset acquisition. The Company will include the carrying amount of its previously held equity method interest along with the consideration paid and transaction costs incurred in determining the amounts to allocate to the related assets and liabilities acquired on its Consolidated Balance Sheets. When treated as an asset acquisition, the Company will not recognize a gain or loss on consolidation of a property. Notes Receivable The following table summarizes our Notes receivable, net dollars in thousands): Interest rate at Balance Outstanding September 30, September 30, December 31, 2019 2019 2018 Note due December 2019 (a) 12.00 % $ 20,000 $ 20,000 Note due February 2020 (b) 10.00 % 15,649 14,659 Note due October 2020 (c) 8.00 % 2,250 2,000 Note due August 2022 (d) 10.00 % — 5,600 Total notes receivable, net $ 37,899 $ 42,259 (a) In March 2018, the Company entered into a secured note with an unaffiliated third party with an aggregate commitment of $20.0 million, of which $20.0 million has been funded. Interest payments are due when the loan matures. In March 2019, the note’s maturity was extended to December 27, 2019, and the note is secured by a parcel of land. (b) The Company has a secured note with an unaffiliated third party with an aggregate commitment of $16.4 million, of which $15.6 million has been funded, including $1.0 million funded during the nine months ended September 30, 2019. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the eighth anniversary of the date of the note (February 2020). (c) The Company has a secured note with an unaffiliated third party with an aggregate commitment of $2.3 million, of which $2.3 million has been funded, including $0.3 million funded during the nine months ended September 30, 2019. Interest payments are due when the loan matures. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $10.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (October 2020). (d) In January 2019, the $5.6 million secured note was repaid in full along with the contractually accrued interest of $0.2 million and an additional $8.5 million of promoted interest in conjunction with the unaffiliated third party being acquired. The Company recognized $1.2 million and $1.2 million of interest income from notes receivable during the three months ended September 30, 2019 and 2018, respectively, and $3.5 million and $2.9 million of interest income and $8.5 million and zero of promoted interest from notes receivable during the nine months ended September 30, 2019 and 2018, respectively, none of which was related party interest. Interest income and promoted interest are included in Interest income and other income/(expense), net Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to stockholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three and nine months ended September 30, 2019 and 2018, the Company’s other comprehensive income/(loss) consisted of the gain/(loss) on derivative instruments that are designated as and qualify as cash flow hedges, (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) into earnings, and the allocation of other comprehensive income/(loss) to noncontrolling interests. The (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) is included in Interest expense Derivatives and Hedging Activity, Income Taxes Due to the structure of the Company as a REIT and the nature of the operations for the operating properties, no provision for federal income taxes has been provided for at UDR. Historically, the Company has generally incurred only state and local excise and franchise taxes. UDR has elected for certain consolidated subsidiaries to be treated as taxable REIT subsidiaries (“TRS”). Income taxes for our TRS are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. The Company’s deferred tax assets are generally the result of differing depreciable lives on capitalized assets and timing of expense recognition for certain accrued liabilities. As of September 30, 2019 and December 31, 2018, UDR’s net deferred tax asset/(liability) was $(1.3) million and less than $(0.1) million, respectively. GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition. The Company recognizes its tax positions and evaluates them using a two-step process. First, UDR determines whether a tax position is more likely than not (greater than 50 percent probability) to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. UDR had no material unrecognized tax benefit, accrued interest or penalties at September 30, 2019. UDR and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The tax years 2016 through 2018 remain open to examination by tax jurisdictions to which we are subject. When applicable, UDR recognizes interest and/or penalties related to uncertain tax positions in Tax (provision)/benefit, net Forward Sales Agreements The Company utilizes forward sales agreements for the future issuance of its common stock. When the Company enters into a forward sales agreement, the contract requires the Company to sell its shares to a counterparty at a predetermined price at a future date. The net sales price and proceeds attained by the Company will be determined on the dates of settlement, with adjustments during the term of the contract for the Company’s anticipated dividends as well as for a daily interest factor that varies with changes in the federal funds rate. The Company generally has the ability to determine the dates and method of settlement (i.e., gross physical settlement, net share settlement or cash settlement), subject to certain conditions and the right of the counterparty to accelerate settlement under certain circumstances. The Company accounts for the shares of common stock reserved for issuance upon settlement as equity in accordance with ASC 815-40, Contracts in Entity's Own Equity The guidance establishes a two-step process for evaluating whether an equity-linked financial instrument is considered indexed to its own stock by evaluating the instrument’s contingent exercise provisions and settlement provisions. We determined that (i) none of the agreements’ exercise contingencies were based on observable markets or indices besides those related to the market for our own stock price and operations; and (ii) none of the settlement provisions precluded the agreements from being indexed to our own stock. Based upon our determination that the forward sales agreements are considered indexed to our own stock as well as the agreements permitting us to share settle, we have determined that the forward sales agreements qualify for equity classification. Before the issuance of shares of common stock, upon physical or net share settlement of the forward sales agreements, the Company expects that the shares issuable upon settlement of the forward sales agreements will be reflected in its diluted income/(loss) per share calculations using the treasury stock method. Under this method, the number of shares of common stock used in calculating diluted income/(loss) per share is deemed to be increased by the excess, if any, of the number of shares of common stock that would be issued upon full physical settlement of the forward sales agreements over the number of shares of common stock that could be purchased by the Company in the open market (based on the average market price during the period) using the proceeds receivable upon full physical settlement (based on the adjusted forward sale price at the end of the reporting period). When the Company physically or net share settles any forward sales agreement, the delivery of shares of common stock would result in an increase in the number of weighted average common shares outstanding and dilution to basic income/(loss) per share. (See Note 8, Income/(Loss) per Share |
United Dominion Realty L.P. | |
Entity information | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses, I n February 2016, the FASB issued ASU 2016-02, Leases . The standard amended the existing lease accounting guidance and required lessees to recognize a lease liability and a right-of-use asset for all leases on their balance sheets. Lessees of operating leases continued to recognize lease expense in a manner similar to previous accounting. For lessors, accounting for leases under the new guidance was substantially the same as in prior periods, but eliminated current real estate-specific provisions and changed the treatment of initial direct costs. The standard was effective for the Operating Partnership on January 1, 2019. The Operating Partnership elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Operating Partnership also elected the short-term lease exception provided for in the standard and therefore only recognizes right-of-use assets and lease liabilities for leases with a term greater than one year. The Operating Partnership recognized right-of-use assets of $94.2 million and lease liabilities of $88.2 million as of January 1, 2019 upon adoption of the standard. The right-of-use assets included $6.0 million of prepaid rent and intangible assets that was included within Other assets The lease liabilities represent the present value of the remaining minimum lease payments as of January 1, 2019 related to ground leases for communities where we are the lessee. The right-of-use assets represent our right to use an underlying asset for the lease term, which are calculated utilizing the lease liabilities plus any prepaid lease payments and intangible assets for ground leases acquired in the purchase of real estate. Our right-of-use assets and related lease liabilities recognized as of January 1, 2019 may change as a result of updates to the projected future minimum lease payments. Certain of our ground lease agreements where we are the lessee have future minimum lease payments that reset in the future based upon a percentage of the fair market value of the land at the time of the reset. The Operating Partnership will continue to recognize lease expense for these leases in a manner similar to previous accounting based on our election of the package of practical expedients. However, in the event we modify existing ground leases and/or enter into new ground leases subsequent to the adoption of the standard, such leases would likely be classified as finance leases under the standard and require expense recognition based on the effective interest method. Under the standard, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, subsequent to the adoption of the standard, we are now expensing non-incremental leasing costs as incurred. In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements Leases option that permitted entities to not recast the comparative periods presented when transitioning to the standard, which the Operating Partnership also elected. Principles of Consolidation The Operating Partnership accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Operating Partnership first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Operating Partnership consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Operating Partnership consolidates an entity when it controls the entity through ownership of a majority voting interest. Income/(Loss) Per Operating Partnership Unit Basic income/(loss) per OP Unit is computed by dividing net income/(loss) attributable to the general and limited partner unitholders by the weighted average number of general and limited partner units outstanding during the year. Diluted income/(loss) per OP Unit reflects the potential dilution that could occur if securities or other contracts to issue OP Units were exercised or converted into OP Units or resulted in the issuance of OP Units and then shared in the income/(loss) of the Operating Partnership. Real Estate Sales Gain Recognition For sale transactions resulting in a transfer of a controlling financial interest of a property, the Operating Partnership generally derecognizes the related assets and liabilities from its Consolidated Balance Sheets and records the gain or loss in the period in which the transfer of control occurs. If control of the property has not transferred to the counterparty, the criteria for derecognition are not met and the Operating Partnership will continue to recognize the related assets and liabilities on its Consolidated Balance Sheets. Sale transactions to entities in which the Operating Partnership sells a controlling financial interest in a property but retains a noncontrolling interest are accounted for as partial sales. Partial sales resulting in a change in control are accounted for at fair value and a full gain or loss is recognized. Therefore, the Operating Partnership will record a gain or loss on the partial interest sold, and the initial measurement of our retained interest will be accounted for at fair value. Sales of real estate to joint ventures or other noncontrolled investees are also accounted for at fair value and the Operating Partnership will record a full gain or loss in the period the property is contributed. To the extent that the Operating Partnership acquires a controlling financial interest in a property that it previously accounted for as an equity method investment, the Operating Partnership will not remeasure its previously held interest if the acquisition is treated as an asset acquisition. The Operating Partnership will include the carrying amount of its previously held equity method interest along with the consideration paid and transaction costs incurred in determining the amounts to allocate to the related assets and liabilities acquired on its Consolidated Balance Sheets. When treated as an asset acquisition, the Operating Partnership will not recognize a gain or loss on consolidation of a property. Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to unitholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three and nine months ended September 30, 2019 and 2018, the Operating Partnership’s other comprehensive income/(loss) consisted of the gain/(loss) on derivative instruments that are designated as and qualify as cash flow hedges and (gain)/loss reclassified from other comprehensive income/(loss) into earnings. The (gain)/loss reclassified from other comprehensive income/(loss) is included in Interest expense Derivatives and Hedging Activity, Income Taxes The taxable income or loss of the Operating Partnership is reported on the tax returns of the partners. Accordingly, no provision has been made in the accompanying financial statements for federal or state income taxes on income that is passed through to the partners. However, any state or local revenue, excise or franchise taxes that result from the operating activities of the Operating Partnership are recorded at the entity level. The Operating Partnership’s tax returns are subject to examination by federal and state taxing authorities. Net income for financial reporting purposes differs from the net income for income tax reporting purposes primarily due to temporary differences, principally real estate depreciation and the tax deferral of certain gains on property sales. The differences in depreciation result from differences in the book and tax basis of certain real estate assets and the differences in the methods of depreciation and lives of the real estate assets. The Operating Partnership evaluates the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Operating Partnership’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management of the Operating Partnership is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. The Operating Partnership has no examinations in progress and none are expected at this time. Management of the Operating Partnership has reviewed all open tax years (2016 through 2018) of tax jurisdictions and concluded there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. |
REAL ESTATE OWNED (UNITED DOMIN
REAL ESTATE OWNED (UNITED DOMINION REALTY, L.P.) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
REAL ESTATE OWNED | 3. REAL ESTATE OWNED Real estate assets owned by the Company consist of income producing operating properties, properties under development, land held for future development, and held for disposition properties. As of September 30, 2019, the Company owned and consolidated 138 communities in 13 states plus the District of Columbia totaling 43,683 apartment homes. The following table summarizes the carrying amounts for our real estate owned (at cost) as of September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, December 31, 2019 2018 Land $ 2,020,617 $ 1,849,799 Depreciable property — held and used: Land improvements 220,654 213,224 Building, improvements, and furniture, fixtures and equipment 9,260,709 8,133,136 Real estate intangible assets 40,570 — Under development: Land and land improvements 13,853 — Building, improvements, and furniture, fixtures and equipment 7,992 — Real estate owned 11,564,395 10,196,159 Accumulated depreciation (4,000,608) (3,654,160) Real estate owned, net $ 7,563,787 $ 6,541,999 Acquisitions In January 2019, the Company exercised its fixed-price option to purchase its joint venture partner’s ownership interest in a 386 apartment home operating community in Anaheim, California, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $33.5 million. In connection with the acquisition, the Company repaid approximately $59.8 million of joint venture construction financing. Joint Ventures and Partnerships In January 2019, the Company exercised its fixed-price option to purchase its joint venture partner’s ownership interest in a 155 apartment home operating community located in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $20.0 million. In connection with the acquisition, the Company repaid approximately $26.0 million of joint venture construction financing. In January 2019, the Company acquired a to-be-developed parcel of land located in Washington D.C. for approximately $27.1 million. In February 2019, the Company acquired a to-be-developed parcel of land located in Denver, Colorado for approximately $13.7 million. In February 2019, the Company acquired a 188 apartment home operating community located in Brooklyn, New York for approximately $132.1 million. T In February 2019, the Company acquired a 381 apartment home operating community located in St. Petersburg, Florida for approximately $98.3 million . In April 2019, the Company acquired a 498 apartment home operating community located in Towson, Maryland for approximately $86.4 million. In May 2019, the Company acquired a 313 apartment home operating community located in King of Prussia, Pennsylvania for approximately $107.3 million. The Company increased its real estate assets owned by approximately $106.4 million and recorded approximately $0.9 million of in-place lease intangibles. In May 2019, the Company acquired a 240 apartment home operating community located in St. Petersburg, Florida for approximately $49.4 million. The Company increased its real estate assets owned by approximately $48.2 million and recorded approximately $1.2 million of in-place lease intangibles. In June 2019, the Company acquired a 200 apartment home operating community located in Waltham, Massachusetts for approximately $84.6 million. The Company increased its real estate assets owned by approximately $82.6 million and recorded approximately $2.0 million of in-place lease intangibles. In August 2019, the Company acquired a 914 apartment home operating community located in Norwood, Massachusetts for approximately $270.2 million. The Company increased its real estate assets owned by approximately $260.1 million and recorded approximately $10.1 million of in-place lease intangibles. In August 2019, the Company acquired a 185 apartment home operating community located in Englewood, New Jersey for approximately $83.6 million. The Company increased its real estate assets owned by approximately $77.5 million and recorded approximately $4.6 million of real estate intangibles and approximately $1.5 million of in-place lease intangibles. In August 2019, the Company purchased a 292 apartment home operating community in Washington, D.C., directly from the UDR/KFH joint venture, thereby increasing its ownership interest from 30% to 100%, for a purchase price at 100% of approximately $184.0 million, before $2.8 million of closing costs incurred by UDR at acquisition (see Note 5, Joint Ventures and Partnerships Subsequent to the acquisition, the Company received a distribution from the UDR/KFH joint venture of $22.9 million related to the 30% interest it previously held in the community following the payment of closing costs and repayment of the joint venture mortgage debt. As a result of the acquisition, in August 2019, the Company consolidated the operating community. The Company had previously accounted for its 30% ownership interest as an unconsolidated joint venture. The Company accounted for the consolidation as an asset acquisition resulting in no gain or loss upon consolidation and increased its real estate owned by approximately $156.0 million and recorded approximately $5.9 million of in-place lease intangibles. In August 2019, the Company entered into an agreement with the Metropolitan Life Insurance Company (“MetLife”), its joint venture partner, to acquire the approximately 50% ownership interest not previously owned in 10 UDR/MetLife operating communities, one development community and four land parcels valued at $1.1 billion, or $557 million at UDR’s share. The transaction is expected to close during the fourth quarter of 2019, subject to customary closing conditions and closing price adjustments (see Note 5, Joint Ventures and Partnerships Dispositions In June 2019, the Company sold a parcel of land located in Los Angeles, California for $38.0 million, resulting in a gain of approximately $5.3 million. Prior to the sale, the parcel of land was subject to a ground lease, under which UDR was the lessor, scheduled to expire in 2065. The ground lease included a purchase option for the lessee to acquire the land during specific periods of the ground lease term. During the second quarter, the lessee exercised the purchase option resulting in this sale by the Company and the ground lease being terminated. Prior to the sale, the purchase option was not deemed to be a bargain purchase option. This ground lease existed as of the adoption of the new lease accounting guidance on January 1, 2019 and we did not reassess lease classification per the practical expedient provided by the standard. As a result, this ground lease continued to be classified as an operating lease and the land parcel subject to the ground lease continued to be recognized in Real estate held for investment Other Activity Predevelopment, development, and redevelopment projects and related costs are capitalized and reported on the Consolidated Balance Sheets as Total real estate owned, net of accumulated depreciation In connection with the acquisition of certain properties, the Company agreed to pay certain of the tax liabilities of certain contributors if the Company sells one or more of the properties contributed in a taxable transaction prior to the expiration of specified periods of time following the acquisition. The Company may, however, sell, without being required to pay any tax liabilities, any of such properties in a non-taxable transaction, including, but not limited to, a tax-deferred Section 1031 exchange. Further, the Company has agreed to maintain certain debt that may be guaranteed by certain contributors for specified periods of time following the acquisition. The Company, however, has the ability to refinance or repay guaranteed debt or to substitute new debt if the debt and the guaranty continue to satisfy certain conditions. |
United Dominion Realty L.P. | |
Entity information | |
REAL ESTATE OWNED | 3. REAL ESTATE OWNED Real estate assets owned by the Operating Partnership consist of income producing operating properties, properties under development, land held for future development, and sold or held for disposition properties. At September 30, 2019, the Operating Partnership owned and consolidated 52 communities in nine states plus the District of Columbia totaling 16,434 apartment homes. The following table summarizes the carrying amounts for our real estate owned (at cost) as of September 30, 2019 and December 31, 2018 (dollars in thousands) September 30, December 31, 2019 2018 Land $ 711,256 $ 711,256 Depreciable property — held and used: Land improvements 95,096 92,000 Buildings, improvements, and furniture, fixtures and equipment 3,055,402 3,008,729 Real estate owned 3,861,754 3,811,985 Accumulated depreciation (1,762,168) (1,658,161) Real estate owned, net $ 2,099,586 $ 2,153,824 Acquisitions The Operating Partnership did not have any acquisitions of real estate during the nine months ended September 30, 2019. Dispositions The Operating Partnership did not have any dispositions of real estate during the nine months ended September 30, 2019. Other Activity Predevelopment, development, and redevelopment projects and related costs are capitalized and reported on the Consolidated Balance Sheets as Total real estate owned, net of accumulated depreciation In connection with the acquisition of certain properties, the Operating Partnership agreed to pay certain of the tax liabilities of certain contributors if the Operating Partnership sells one or more of the properties contributed in a taxable transaction prior to the expiration of specified periods of time following the acquisition. The Operating Partnership may, however, sell, without being required to pay any tax liabilities, any of such properties in a non-taxable transaction, including, but not limited to, a tax deferred Section 1031 exchange. Further, the Operating Partnership has agreed to maintain certain debt that may be guaranteed by certain contributors for specified periods of time following the acquisition. The Operating Partnership, however, has the ability to refinance or repay guaranteed debt or to substitute new debt if the debt and the guaranty continue to satisfy certain conditions. |
UNCONSOLIDATED ENTITIES (UNITED
UNCONSOLIDATED ENTITIES (UNITED DOMINION REALTY, L.P.) | 9 Months Ended |
Sep. 30, 2019 | |
Unconsolidated entities | |
UNCONSOLIDATED ENTITIES | 5. JOINT VENTURES AND PARTNERSHIPS UDR has entered into joint ventures and partnerships with unrelated third parties to own, operate, acquire, renovate, develop, redevelop, dispose of, and manage real estate assets that are either consolidated and included in Real estate owned Investment in and advances to unconsolidated joint ventures, net beneficiary. Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. UDR’s joint ventures and partnerships are funded with a combination of debt and equity. Our losses are limited to our investment and except as noted below, the Company does not guarantee any debt, capital payout or other obligations associated with our joint ventures and partnerships. The Company recognizes earnings or losses from our investments in unconsolidated joint ventures and partnerships consisting of our proportionate share of the net earnings or losses of the joint ventures and partnerships. In addition, we may earn fees for providing management services to the unconsolidated joint ventures and partnerships. The following table summarizes the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net, which are accounted for under the equity method of accounting as of September 30, 2019 and December 31, 2018 (dollars in thousands) Number of Number of Apartment Properties Homes Investment at UDR’s Ownership Interest Location of September 30, September 30, September 30, December 31, September 30, December 31, Joint Venture Properties 2019 2019 2019 2018 2019 2018 Operating and development: UDR/MetLife I Los Angeles, CA 1 operating community 150 $ 29,599 $ 30,839 50.0 % 50.0 % UDR/MetLife II (a) Various 18 operating communities 4,059 300,479 296,807 50.0 % 50.0 % Other UDR/MetLife Various 5 operating communities 1,437 102,435 115,668 50.6 % 50.6 % Joint Ventures UDR/MetLife Vitruvian Park ® (a) Addison, TX 4 operating communities; 1,879 75,858 71,730 50.0 % 50.0 % 1 development community (b); 4 land parcels UDR/KFH (c) Washington, D.C. — — 156 5,507 — % 30.0 % West Coast Development Joint Ventures (d) Los Angeles, CA 1 operating community 293 35,165 36,143 47.0 % 47.0 % Investment in and advances to unconsolidated joint ventures, net, before participating loan investment, preferred equity investments and other investments $ 543,692 $ 556,694 Income/(loss) from investments Investment at Three Months Ended Nine Months Ended Developer Capital Program Years To UDR September 30, December 31, September 30, September 30, and Other Investments (e) Location Rate Maturity Commitment (f) 2019 2018 2019 2018 2019 2018 Preferred equity investments: West Coast Development Joint Ventures (d) Various 6.5 % N/A $ — $ 17,080 $ 65,417 $ 71 $ 25 $ (100) $ 974 1532 Harrison (g) San Francisco, CA 11.0 % 2.8 24,645 29,753 24,986 802 721 2,324 1,492 1200 Broadway (h) Nashville, TN 8.0 % 3.0 55,558 62,666 58,982 1,244 859 3,619 1,870 Junction (i) Santa Monica, CA 12.0 % 2.8 8,800 10,072 9,211 299 141 861 141 1300 Fairmount (j) Philadelphia, PA Variable 3.9 51,393 36,404 8,318 930 27 1,724 27 Essex (k) Orlando, FL 12.5 % 3.9 12,886 14,347 9,940 443 46 1,182 46 Modera Lake Merritt (l) Oakland, CA 9.0 % 4.6 27,250 17,377 — 366 — 622 — Other investments: The Portals (m) Washington, D.C. 11.0 % 1.7 38,559 46,863 43,167 1,287 1,015 3,694 2,523 Other investment ventures N/A N/A N/A $ 18,000 12,926 4,154 $ 4,247 $ (77) $ 4,272 $ (262) Total Developer Capital Program and Other Investments 247,488 224,175 Total investment in and advances to unconsolidated joint ventures, net $ 791,180 $ 780,869 (a) In August 2019, the Company entered into an agreement with MetLife, its joint venture partner, to acquire the approximately 50% ownership interest not previously owned in 10 UDR/MetLife operating communities, one development community and four land parcels valued at $1.1 billion, or $557 million at UDR’s share, and to sell its approximately 50% ownership interest in five UDR/MetLife operating communities valued at $645 million, or $323 million at UDR’s share, to MetLife. The transaction is expected to close during the fourth quarter of 2019, subject to customary closing conditions and closing price adjustments. Upon closing of the transaction, the UDR/MetLife II joint venture will hold seven operating communities and the UDR/MetLife Vitruvian Park ® joint venture will no longer hold any properties. (b) The number of apartment homes for the communities under development presented in the table above is based on the projected number of total homes upon completion of development. As of September 30, 2019, no apartment homes had been completed in the development community held by UDR/MetLife Vitruvian Park ® . (c) As of January 1, 2019, the joint venture held three operating communities. In May 2019, the joint venture sold one community, a 217 home operating community in Arlington, Virginia, for a sales price of approximately $74.8 million. As a result, the Company recorded a gain on the sale of approximately $5.3 million, which is included in Income/(loss) from unconsolidated entities In July 2019, the joint venture sold the second community, a 151 home operating community in Silver Spring, Maryland, for a sales price of approximately $43.5 million. As a result, the Company recorded a gain on the sale of approximately $5.3 million, which is included in Income/(loss) from unconsolidated entities In August 2019, the joint venture sold the third community, a 292 home operating community in Washington, D.C., directly to the Company for a sales price at 100% of approximately $184.0 million, before $2.8 million of closing costs incurred by UDR at acquisition. The Company deferred its share of the gain on sale of approximately $23.8 million and recorded it as a reduction of the carrying amount of real estate assets owned (see Note 3, Real Estate Owned (d) In 2015, the Company entered into a joint venture agreement with an unaffiliated joint venture partner and paid $136.3 million for a 48% ownership interest in a portfolio of five communities that were under construction. The communities are located in three of the Company’s core, coastal markets: Seattle, Washington, Los Angeles, California and Orange County, California. UDR earns a 6.5% preferred return on its investment through each individual community’s date of stabilization, defined as when a community reaches 80% occupancy for 90 consecutive days, while the joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization, income and expense are shared based on each partner’s ownership percentage and the Company no longer receives a 6.5% preferred return on its investment in the stabilized community. The Company serves as property manager and earns a management fee during the lease-up phase and subsequent operation of each of the communities. The unaffiliated joint venture partner is the general partner of the joint venture and the developer of the communities. The Company has concluded it does not control the joint ventures and, therefore, accounts for them under the equity method of accounting. During 2017, the Company exercised its fixed-price option to purchase the joint venture partner’s ownership interest in one of the five communities, and the joint venture sold two of the four remaining communities. In January 2019, the Company exercised its fixed-price option to purchase its joint venture partner’s ownership interest in one of the two remaining communities, a 386 apartment home operating community in Orange County, California, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $33.5 million. As a result, the Company consolidated the operating community and it is no longer accounted for as a preferred equity investment in an unconsolidated joint venture (see Note 3, Real Estate Owned The Company and its joint venture partner continue to operate the one remaining community. In 2017, the Company entered into two additional joint venture agreements with the unaffiliated joint venture partner and paid $15.5 million for a 49% ownership interest in a 155 apartment home community in Seattle, Washington and $16.1 million for a 49% ownership interest in a 276 apartment home community in Hillsboro, Oregon (together with the 2015 joint venture described above, the “West Coast Development Joint Ventures”). UDR earns a 6.5% preferred return on its investments through the communities’ date of stabilization, as defined above, while our joint venture partner is allocated all operating income and expense during the pre-stabilization period. Upon stabilization of the communities, income and expense will be shared based on each partner’s ownership percentage and the Company will no longer receive a 6.5% preferred return on its investment. The Company serves as property manager and earns a management fee during the lease-up phase and subsequent operation of the stabilized communities. The unaffiliated joint venture partner is the general partner and the developer of the communities. The Company has concluded it does not control the joint ventures and, therefore, accounts for them under the equity method of accounting. The Company has a fixed-price option to acquire the remaining interest in the communities beginning one year after completion. The unaffiliated joint venture partner is providing certain guaranties and there are construction loans on the communities. In January 2019, the Company exercised its fixed-price option to purchase its joint venture partner’s ownership interest in the 155 apartment home operating community in Seattle, Washington, thereby increasing its ownership interest from 49% to 100%, for a cash purchase price of approximately $20.0 million. As a result, the Company consolidated the operating community and it is no longer accounted for as a preferred equity investment in an unconsolidated joint venture (see Note 3, Real Estate Owned The Company’s recorded equity investment in the West Coast Development Joint Ventures at September 30, 2019 and December 31, 2018, of $52.2 million and $101.6 million, respectively, is inclusive of outside basis costs and our accrued but unpaid preferred return. (e) The Developer Capital Program is a program through which the Company makes investments, including preferred equity investments, mezzanine loans or other structured investments that may receive a fixed or variable yield on the investment and may include provisions pursuant to which the Company participates in the increase in value of the property upon monetization of the applicable property and/or holds fixed price purchase options. (f) Represents UDR’s maximum funding commitment only and therefore excludes other activity such as income from investments. (g) In June 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 136 apartment home community in San Francisco, California. The Company’s preferred equity investment of up to $24.6 million earns a preferred return of 11.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (h) In September 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 313 apartment home community in Nashville, Tennessee. The Company’s preferred equity investment of up to $55.6 million earns a preferred return of 8.0% per annum and receives a variable percentage of the value created from the project upon a capital or liquidating event. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (i) In August 2018, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 66 apartment home community in Santa Monica, CA. The Company’s preferred equity investment of $8.8 million earns a preferred return of 12.0% per annum. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (j) In August 2018, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 471 apartment home community in Philadelphia, PA. The Company’s preferred equity investment of up to $51.4 million earns a preferred return between 8.5% and 12.0% per annum and receives a variable percentage of the value created from the project upon a capital or liquidating event. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (k) In September 2018, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 330 apartment home community in Orlando, FL. The Company’s preferred equity investment of up to $12.9 million earns a preferred return of 12.5% per annum. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting. (l) In April 2019, the Company entered into a joint venture agreement with an unaffiliated joint venture partner to develop and operate a 173 apartment home community in Oakland, CA. The Company’s preferred equity investment of up to $27.3 million earns a preferred return of 9.0% per annum and receives a variable percentage of the value created from the project upon a capital or liquidating event. The unaffiliated joint venture partner is the managing member of the joint venture and the developer of the community. The Company has concluded that it does not control the joint venture and, therefore, accounts for it under the equity method of accounting . (m) In May 2017, the Company entered into a joint venture agreement with an unaffiliated joint venture partner. The joint venture has made a mezzanine loan to a third party developer of a 373 apartment home community in Washington, D.C. The unaffiliated joint venture partner is the managing member of the joint venture. The mezzanine loan is for up to $71.0 million at an interest rate of 13.5% per annum and carries a term of four years with one 12-month extension option. The Company’s commitment to the joint venture is approximately $38.6 million and earns a weighted average return of approximately 11.0% per annum. The Company has concluded that it does not control the joint venture and , therefore, accounts for it under the equity method of accounting. As of September 30, 2019 and December 31, 2018, the Company had deferred fees of $10.6 million and $11.0 million, respectively, which will be recognized through earnings over the weighted average life of the related properties, upon the disposition of the properties to a third party, or upon completion of certain development obligations. The Company recognized management fees of $6.4 million and $2.9 million during the three months ended September 30, 2019 and 2018, respectively, and $12.0 million and $ 8.7 million for the nine months ended September 30, 2019 and 2018, respectively, for management of the communities held by the joint ventures and partnerships. The management fees are included in Joint venture management and other fees on the Consolidated Statements of Operations. The Company may, in the future, make additional capital contributions to certain of our joint ventures and partnerships should additional capital contributions be necessary to fund acquisitions or operations. We evaluate our investments in unconsolidated joint ventures and partnerships when events or changes in circumstances indicate that there may be an other-than-temporary decline in value. We consider various factors to determine if a decrease in the value of the investment is other-than-temporary. The Company did not recognize any other-than-temporary impairments in the value of its investments in unconsolidated joint ventures or partnerships during the three and nine months ended September 30, 2019 and 2018. Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of September 30, 2019 and December 31, 2018 ( dollars in thousands September 30, December 31, 2019 2018 Total real estate, net $ 3,101,213 $ 3,311,034 Cash and cash equivalents 56,829 49,867 Other assets 165,767 124,428 Total assets $ 3,323,809 $ 3,485,329 Third party debt, net $ 1,909,223 $ 2,125,350 Accounts payable and accrued liabilities 73,803 71,272 Total liabilities 1,983,026 2,196,622 Total equity $ 1,340,783 $ 1,288,707 Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three and nine months ended September 30, 2019 and 2018 ( dollars in thousands : Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total revenues $ 75,378 $ 76,203 $ 233,836 $ 215,140 Property operating expenses 27,505 30,096 87,073 85,435 Real estate depreciation and amortization 26,027 29,545 83,661 85,063 Operating income/(loss) 21,846 16,562 63,102 44,642 Interest expense (20,779) (22,919) (64,309) (63,990) Gain/(loss) on sale of property (a) 97,201 — 115,558 — Net unrealized gain/(loss) on held investments 25,669 — 27,191 — Other income/(loss) 82 40 194 141 Net income/(loss) $ 124,019 $ (6,317) $ 141,736 $ (19,207) (a) Represent the gains on the sale of three operating communities at the UDR/KFH joint venture level, as described in note (c) to the table above summarizing the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net. |
United Dominion Realty L.P. | |
Unconsolidated entities | |
UNCONSOLIDATED ENTITIES | 4. UNCONSOLIDATED ENTITIES The DownREIT Partnership is accounted for by the Operating Partnership under the equity method of accounting and is included in Investment in unconsolidated entities The DownREIT Partnership is a VIE as the limited partners lack substantive kick-out rights and substantive participating rights. The Operating Partnership is not the primary beneficiary of the DownREIT Partnership as it lacks the power to direct the activities that most significantly impact its economic performance and will continue to account for its interest as an equity method investment. See Note 2, Significant Accounting Policies As of September 30, 2019, the DownREIT Partnership owned 12 communities with 5,657 apartment homes. The Operating Partnership’s investment in the DownREIT Partnership was $82.3 million and $103.0 million as of September 30, 2019 and December 31, 2018, respectively. Combined summary balance sheets relating to all of the DownREIT Partnership (not just our proportionate share) are presented below as of September 30, 2019 and December 31, 2018 ( dollars in thousands September 30, December 31, 2019 2018 Total real estate, net $ 1,119,828 $ 1,167,720 Cash and cash equivalents 22 39 Note receivable from the General Partner 221,789 221,022 Other assets 5,259 5,561 Total assets $ 1,346,898 $ 1,394,342 Secured debt, net $ 428,457 $ 431,735 Other liabilities 25,880 26,597 Total liabilities 454,337 458,332 Total capital $ 892,561 $ 936,010 Combined summary financial information relating to all of the DownREIT Partnership (not just our proportionate share) is presented below for the three and nine months ended September 30, 2019 and 2018 ( dollars in thousands : Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Rental income $ 32,434 $ 35,069 $ 96,065 $ 103,842 Property operating expenses (13,087) (14,303) (38,934) (43,180) Real estate depreciation and amortization (20,620) (22,097) (61,424) (65,704) Operating income/(loss) (1,273) (1,331) (4,293) (5,042) Interest expense (4,162) (3,343) (11,979) (10,553) Interest income on note receivable from the General Partner 2,054 1,196 6,060 3,587 Net income/(loss) $ (3,381) $ (3,478) $ (10,212) $ (12,008) |
LEASES (UNITED DOMINION REALTY,
LEASES (UNITED DOMINION REALTY, L.P.) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
Leases | 6. LEASES Lessee - Ground and Office Leases UDR owns six communities that are subject to ground leases, under which UDR is the lessee, expiring between 2043 and 2103, inclusive of extension options we are reasonably certain will be exercised. In addition, UDR is a lessee to an operating lease related to office space rented by the Company with an expiration date in 2021. All of these leases existed as of the adoption of the new lease accounting guidance on January 1, 2019 and we did not reassess lease classification per the practical expedient provided by the standard. As such, these leases will continue to be classified as operating leases through the lease term expiration. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the remaining lease term. We currently do not hold any finance leases. As of September 30, 2019, the Operating lease right-of-use assets Operating lease liabilities Operating lease right-of-use assets Operating lease liabilities As the discount rate implicit in the leases was not readily determinable, we determined the discount rate for these leases utilizing the Company’s incremental borrowing rate at a portfolio level, adjusted for the remaining lease term, and the form of underlying collateral. The weighted average remaining lease term for these leases was 55.2 years at September 30, 2019 and the weighted average discount rate was 5.1% at September 30, 2019. Future minimum lease payments and total operating lease liabilities from our ground leases and office space as of September 30, 2019 are as follows (dollars in thousands): Ground Leases Office Space Total 2019 $ 1,953 $ 19 $ 1,972 2020 7,813 76 7,889 2021 7,813 32 7,845 2022 7,813 - 7,813 2023 7,813 - 7,813 Thereafter 370,467 - 370,467 Total future minimum lease payments (undiscounted) 403,672 127 403,799 Difference between future undiscounted cash flows and discounted cash flows (273,659) (5) (273,664) Total operating lease liabilities (discounted) $ 130,013 $ 122 $ 130,135 For purposes of recognizing our ground lease contracts, the Company uses the minimum lease payments, if stated in the agreement. For ground lease agreements where there is a rent reset provision based on a change in an index or a rate (i.e., changes in fair market rental rates or changes in the consumer price index) but that does not include a specified minimum lease payment, the Company uses the current rent over the remainder of the lease term. If there is a contingency upon which some or all of the variable lease payments that will be paid over the remainder of the lease term are based, which is resolved such that those payments now meet the definition of lease payments, the Company will remeasure the right-of-use asset and lease liability on the reset date. For the nine months ended September 30, 2019, Operating lease right-of-use assets Operating lease liabilities The components of operating lease expenses from our ground leases and office space were as follows (dollars in thousands) Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Ground lease expense: Contractual lease rent expense $ 1,954 $ 6,232 Variable ground lease expense (a) 187 469 Total ground lease expense (b) 2,141 6,701 Contractual office space expense (b) 19 57 Total operating lease expense (c) $ 2,160 $ 6,758 (a) Variable ground lease expense includes adjustments such as changes in the consumer price index and payments based on a percentage of income of the lessee. (b) Ground lease expense is reported within the line item Other operating expenses and office space expense is recorded in General and administrative on the Consolidated Statements of Operations. (c) For the nine months ended September 30, 2019, Operating lease right-of-use assets and Operating lease liabilities amortized by $0.6 million and $0.3 million, respectively. The Company recorded $0.1 million and $0.3 million of total operating lease expense during the three and nine months ended September 30, 2019, respectively, due to the net impact of the amortization. Lessor - Apartment Home, Retail and Commercial Space Leases UDR’s communities and retail and commercial space are leased to tenants under operating leases. As of September 30, 2019, our apartment home leases generally have initial terms of 12 months or less and represent approximately 98.1% of our total lease revenue. As of September 30, 2019, our retail and commercial space leases generally have initial terms of between 5 and 15 years and represent approximately 1.9% of our total lease revenue. Our apartment home leases are generally renewable at the end of the lease term, subject to potential increases in rental rates, and our retail and commercial space leases generally have renewal options, subject to associated increases in rental rates and certain other conditions. (See Note 14, Reportable Segments We previously owned a parcel of land subject to a ground lease under which UDR was the lessor, expiring in 2065. The ground lease included a purchase option for the lessee to acquire the land during specific periods of the ground lease term. In June 2019, the lessee exercised the purchase option and acquired the parcel of land for $38.0 million. (See Note 3, Real Estate Future minimum lease payments from our retail and commercial leases as of September 30, 2019 are as follows (dollars in thousands): Retail and Commercial Leases 2019 $ 4,958 2020 20,565 2021 19,788 2022 18,094 2023 16,843 Thereafter 92,719 Total future minimum lease payments (a) $ 172,967 (a) We have excluded our apartment home leases from this table as our apartment home leases generally have initial terms of 12 months of less. Certain of our leases with retail and commercial tenants provide for the payment by the lessee of additional variable rent based on a percentage of the tenant’s revenue. The amounts shown in the table above do not include these variable percentage rents. The Company recorded variable percentage rents of $0.1 million and $0.3 million during the three and nine months ended September 30, 2019. |
United Dominion Realty L.P. | |
Entity information | |
Leases | 5. LEASES Lessee - Ground Leases The Operating Partnership owns six communities that are subject to ground leases, under which the Operating Partnership is the lessee, expiring between 2043 and 2103, inclusive of extension options we are reasonably certain will be exercised. All of these leases existed as of the adoption of the new lease accounting guidance on January 1, 2019 and we did not reassess lease classification per the practical expedient provided by the standard. As such, these leases will continue to be classified as operating leases through the lease term expiration. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the remaining lease term. We currently do not hold any finance leases. As of September 30, 2019, the Operating lease right-of-use assets Operating lease liabilities Operating lease right-of-use assets Operating lease liabilities As the discount rate implicit in the leases was not readily determinable, we determined the discount rate for these leases utilizing the Operating Partnership’s incremental borrowing rate at a portfolio level, adjusted for the remaining lease term, and the form of underlying collateral. The weighted average remaining lease term for these leases was 55.3 years at September 30, 2019 and the weighted average discount rate was 5.1% at September 30, 2019. Future minimum lease payments and total operating lease liabilities from our ground leases as of September 30, 2019 are as follows (dollars in thousands): Ground Leases 2019 $ 1,953 2020 7,813 2021 7,813 2022 7,813 2023 7,813 Thereafter 370,467 Total future minimum lease payments (undiscounted) 403,672 Difference between future undiscounted cash flows and discounted cash flows (273,659) Total operating lease liabilities (discounted) $ 130,013 For purposes of recognizing our ground lease contracts, the Operating Partnership uses the minimum lease payments, if stated in the agreement. For ground lease agreements where there is a rent reset provision based on a change in an index or a rate (i.e., changes in fair market rental rates or changes in the consumer price index) but that does not include a specified minimum lease payment, the Operating Partnership uses the current rent over the remainder of the lease term. If there is a contingency, upon which some or all of the variable lease payments that will be paid over the remainder of the lease term are based, which is resolved such that those payments now meet the definition of lease payments, the Operating Partnership will remeasure the right-of-use asset and lease liability on the reset date. For the nine months ended September 30, 2019, Operating lease right-of-use assets Operating lease liabilities The components of operating lease expenses from our ground leases were as follows (dollars in thousands) Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Ground lease expense: Contractual lease rent expense $ 1,954 $ 6,232 Variable ground lease expense (a) 187 469 Total operating lease expense (b)(c) $ 2,141 $ 6,701 (a) Variable ground lease expense includes adjustments such as changes in the consumer price index and payments based on a percentage of income of the lessee. (b) Ground lease expense is reported within the line item Other operating expenses on the Consolidated Statements of Operations. (c) For the nine months ended September 30, 2019, Operating lease right-of-use assets and Operating lease liabilities amortized by $0.6 million and $0.3 million, respectively. The Operating Partnership recorded $0.1 million and $0.3 million of total operating lease expense during the three and nine months ended September 30, 2019, respectively, due to the net impact of the amortization. Lessor - Apartment Home and Retail and Commercial Leases The Operating Partnership’s communities and retail and commercial space are leased to tenants under operating leases. As of September 30, 2019, our apartment home leases generally have initial terms of 12 months or less and represent 98.4% of our total lease revenue. As of September 30, 2019, our retail and commercial space leases generally have initial terms between 5 and 15 years and represent approximately 1.6% of our total lease revenue. Our apartment home leases are generally renewable at the end of the lease term, subject to potential increases in rental rates, and our retail and commercial space leases generally have renewal options, subject to associated increases in rental rates and certain other conditions. (See Note 12, Reportable Segments Future minimum lease payments from our retail and commercial leases as of September 30, 2019 are as follows (dollars in thousands): Retail and Commercial Leases 2019 $ 1,810 2020 7,778 2021 7,442 2022 6,841 2023 6,517 Thereafter 19,874 Total future minimum lease payments (a) $ 50,262 (a) We have excluded our apartment home leases from this table as our apartment home leases generally have initial terms of 12 months of less. Certain of our leases with retail and commercial tenants provide for the payment by the lessee of additional variable rent based on a percentage of the tenant’s revenue. The amounts shown in the table above do not include these variable percentage rents. The Operating Partnership recorded variable percentage rents of less than $0.1 million and $0.1 million during the three and nine months ended September 30, 2019, respectively. |
DEBT, NET (UNITED DOMINION REAL
DEBT, NET (UNITED DOMINION REALTY, L.P.) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
DEBT, NET | 7. SECURED AND UNSECURED DEBT, NET The following is a summary of our secured and unsecured debt at September 30, 2019 and December 31, 2018 ( dollars in thousands Principal Outstanding As of September 30, 2019 Weighted Weighted Average Average Number of September 30, December 31, Interest Years to Communities 2019 2018 Rate Maturity Encumbered Secured Debt: Fixed Rate Debt Mortgage notes payable (a) $ 575,965 $ 417,989 3.55 % 6.6 9 Fannie Mae credit facilities (b) — 90,000 — % — — Deferred financing costs (2,275) (1,343) Total fixed rate secured debt, net 573,690 506,646 3.55 % 6.6 9 Variable Rate Debt Tax-exempt secured notes payable (c) 27,000 94,700 2.07 % 12.5 1 Deferred financing costs (66) (119) Total variable rate secured debt, net 26,934 94,581 2.07 % 12.5 1 Total Secured Debt, net 600,624 601,227 3.49 % 6.8 10 Unsecured Debt: Variable Rate Debt Borrowings outstanding under unsecured credit facility due January 2023 (d) (l) — — — % 3.3 Borrowings outstanding under unsecured commercial paper program due October 2019 (e) (l) 60,000 101,115 2.28 % 0.1 Borrowings outstanding under unsecured working capital credit facility due January 2021 34,447 16 2.84 % 1.3 Term Loan due September 2023 (d) (l) 35,000 35,000 3.01 % 4.0 Fixed Rate Debt 3.70% Medium-Term Notes due October 2020 (net of discounts of $0 and $14, respectively) (k) (l) — 299,986 — % — 4.63% Medium-Term Notes due January 2022 (net of discounts of $818 and $1,087, respectively) (l) 399,182 398,913 4.63 % 2.3 1.93% Term Loan due September 2023 (d) (l) 315,000 315,000 1.93 % 4.0 3.75% Medium-Term Notes due July 2024 (net of discounts of $495 and $574, respectively) (g) (l) 299,505 299,426 3.75 % 4.8 8.50% Debentures due September 2024 15,644 15,644 8.50 % 5.0 4.00% Medium-Term Notes due October 2025 (net of discounts of $413 and $465, respectively) (h) (l) 299,587 299,535 4.00 % 6.0 2.95% Medium-Term Notes due September 2026 (l) 300,000 300,000 2.95 % 6.9 3.50% Medium-Term Notes due July 2027 (net of discounts of $547 and $600, respectively) (l) 299,453 299,400 3.50 % 7.8 3.50% Medium-Term Notes due January 2028 (net of discounts of $983 and $1,072, respectively) (l) 299,017 298,928 3.50 % 8.3 4.40% Medium-Term Notes due January 2029 (net of discounts of $6 and $6, respectively) (i) (l) 299,994 299,994 4.40 % 9.3 3.20% Medium-Term Notes due January 2030 (net of discounts of $990 and $0, respectively) (j) (l) 299,010 — 3.20 % 10.3 3.00% Medium-Term Notes due August 2031 (net of discounts of $1,148 and $0, respectively) (k) (l) 398,852 — 3.00 % 11.9 Other 14 16 Deferred financing costs (19,432) (16,413) Total Unsecured Debt, net 3,335,273 2,946,560 3.54 % 6.9 Total Debt, net $ 3,935,897 $ 3,547,787 3.63 % 6.9 For purposes of classification of the above table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument. Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. As of September 30, 2019, secured debt encumbered $1.2 billion or 10.3% of UDR’s total real estate owned based upon gross book value ($10.4 billion or 89.7% of UDR’s real estate owned based on gross book value is unencumbered). (a) During the three months ended September 30, 2019, the Company refinanced a $90.0 million loan with Fannie Mae to a fixed rate mortgage due in October 2029 and took out a new mortgage of $72.5 million due in February 2030. Interest payments are due monthly at interest rates of 2.70% and 3.10%, respectively. The refinancing was accounted for as a debt modification. The Company will from time to time acquire properties subject to fixed rate debt instruments. In those situations, the Company records the debt at its estimated fair value and amortizes any difference between the fair value and par value to interest expense over the life of the underlying debt instrument. During the three months ended September 30, 2019 and 2018, the Company had $0.6 million and $0.9 million, respectively, and during the nine months ended September 30, 2019 and 2018, the Company had $1.7 million and $2.4 million, respectively, of amortization of the fair market adjustment of debt assumed in the acquisition of properties, which was included in Interest expense (b) Further information related to the Fannie Mae credit facility is as follows (dollars in thousands) September 30, December 31, 2019 2018 Borrowings outstanding $ — $ 90,000 Weighted average borrowings during the period ended 80,000 253,813 Maximum daily borrowings during the period ended 90,000 314,869 Weighted average interest rate during the period ended 4.0 % 4.7 % Weighted average interest rate at the end of the period — % 4.0 % (c) (d) six-month extension options, subject to certain conditions. The Term Loan has a scheduled maturity date of September 30, 2023. Based on the Company’s current credit rating, the Revolving Credit Facility has an interest rate equal to LIBOR plus a margin of 82.5 basis points and a facility fee of 15 basis points, and the Term Loan has an interest rate equal to LIBOR plus a margin of 90 basis points. Depending on the Company’s credit rating, the margin under the Revolving Credit Facility ranges from 75 to 145 basis points, the facility fee ranges from 10 to 30 basis points, and the margin under the Term Loan ranges from 80 to 165 basis points. The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Credit Agreement also includes customary events of default, in certain cases subject to customary periods to cure. The occurrence of an event of default, following the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest and all other amounts payable under the Credit Agreement to be immediately due and payable. The following is a summary of short-term bank borrowings under the Revolving Credit Facility at September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, December 31, 2019 2018 Total revolving credit facility $ 1,100,000 $ 1,100,000 Borrowings outstanding at end of period (1) — — Weighted average daily borrowings during the period ended — — Maximum daily borrowings during the period ended — — Weighted average interest rate during the period ended — % — % Interest rate at end of the period — % — % (1) Excludes $2.8 million and $3.3 million of letters of credit at September 30, 2019 and December 31, 2018, respectively. (e) The following is a summary of short-term bank borrowings under the unsecured commercial paper program at September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, December 31, 2019 2018 Total unsecured commercial paper program $ 500,000 $ 500,000 Borrowings outstanding at end of period 60,000 101,115 Weighted average daily borrowings during the period ended 163,347 344,235 Maximum daily borrowings during the period ended 435,000 440,000 Weighted average interest rate during the period ended 2.7 % 2.4 % Interest rate at end of the period 2.3 % 2.9 % (f) 82.5 basis points. Depending on the Company’s credit rating, the margin ranges from 75 to 145 basis points. The following is a summary of short-term bank borrowings under the Working Capital Credit Facility at September 30, 2019 and December 31, 2018 (dollars in thousands): September 30, December 31, 2019 2018 Total working capital credit facility $ 75,000 $ 75,000 Borrowings outstanding at end of period 34,447 16 Weighted average daily borrowings during the period ended 24,870 26,101 Maximum daily borrowings during the period ended 66,170 64,633 Weighted average interest rate during the period ended 3.2 % 2.9 % Interest rate at end of the period 2.8 % 3.3 % (g) (h) (i) (j) . (k) (l) The aggregate maturities, including amortizing principal payments on secured and unsecured debt, of total debt for the next ten calendar years subsequent to September 30, 2019 are as follows (dollars in thousands): Total Fixed Total Variable Total Total Total Year Secured Debt Secured Debt Secured Debt Unsecured Debt Debt 2019 $ 974 $ — $ 974 $ 60,000 $ 60,974 2020 108,077 — 108,077 — 108,077 2021 1,117 — 1,117 34,447 35,564 2022 1,157 — 1,157 400,000 401,157 2023 41,245 — 41,245 350,000 391,245 2024 — — — 315,644 315,644 2025 127,600 — 127,600 300,000 427,600 2026 50,000 — 50,000 300,000 350,000 2027 — — — 300,000 300,000 2028 80,000 — 80,000 300,000 380,000 Thereafter 162,500 27,000 189,500 1,000,000 1,189,500 Subtotal 572,670 27,000 599,670 3,360,091 3,959,761 Non-cash (a) 1,020 (66) 954 (24,818) (23,864) Total $ 573,690 $ 26,934 $ 600,624 $ 3,335,273 $ 3,935,897 (a) Includes the unamortized balance of fair market value adjustments, premiums/discounts and deferred financing costs . The Company amortized $1.1 million and $ 1.1 million, respectively, during the three months ended September 30, 2019 and 2018, and $3.1 million and $3.2 million, respectively, during the nine months ended September 30, 2019 and 2018, of deferred financing costs into Interest expense. We were in compliance with the covenants of our debt instruments at September 30, 2019. In October 2019, the Company issued $100.0 million of 3.20% senior unsecured medium-term notes due 2030 and $300.0 million of 3.10% senior unsecured medium-term notes due 2034. Interest is payable semi-annually in arrears on January 15 and July 15 for the 2030 notes, and May 1 and November 1 for the 2034 notes. The 2030 notes were priced at 103.32% of the principal amount at issuance, and the 2034 notes were priced at 99.56% of the principal amount at issuance. In combination with the issuance, the Company entered into treasury lock agreements to hedge against interest rate risk on all of this debt. The all-in weighted average interest rate, inclusive of the impact of the treasury locks, was 3.24% for the 2030 notes and 3.13% for the 2034 notes. The Company will use the net proceeds for the repayment of all $400.0 million aggregate principal amount (plus the make-whole amount of approximately $21.5 million and accrued and unpaid interest) of its 4.63% senior unsecured medium-term notes due January 2022. The 2034 notes were issued as “green” bonds and, as a result, the Company intends to allocate the net proceeds from the sale of the 2034 notes to fund eligible green projects, including previously incurred development costs related to properties that have received at least a LEED Silver certification. The 2030 notes are a further issuance of, and form a single series with, the $300.0 million aggregate principal amount of the Company’s 3.20% notes due 2030 that were issued on July 2, 2019. As of the completion of the offering, the aggregate principal amount of outstanding 2030 notes was $400.0 million. |
United Dominion Realty L.P. | |
Entity information | |
DEBT, NET | 6. DEBT, NET Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. For purposes of classification in the following table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Operating Partnership having effectively established the fixed interest rate for the underlying debt instrument. Secured debt consists of the following as of September 30, 2019 and December 31, 2018 ( dollars in thousands Principal Outstanding As of September 30, 2019 Weighted Weighted Average September 30, December 31, Average Years to Communities 2019 2018 Interest Rate Maturity Encumbered Fixed Rate Debt Mortgage notes payable $ 72,500 $ — 3.10 % 10.3 1 Deferred financing costs (370) — Total fixed rate secured debt, net 72,130 — 3.10 % 10.3 1 Secured Debt Tax-exempt secured note payable $ 27,000 $ 27,000 2.07 % 12.5 1 Deferred financing costs (66) (71) Total Secured Debt, Net $ 99,064 $ 26,929 2.85 % 10.9 2 The Operating Partnership may from time to time acquire properties subject to fixed rate debt instruments. In those situations, management will record the secured debt at its estimated fair value and amortize any difference between the fair value and par to interest expense over the life of the underlying debt instrument. The Operating Partnership did not have any unamortized fair value adjustments associated with the fixed rate debt instruments on the Operating Partnership’s properties. Fixed Rate Debt Mortgage notes payable Variable Rate Debt Tax-exempt secured note payable. Guarantor on Unsecured Debt The Operating Partnership is the guarantor on the General Partner’s unsecured revolving credit facility with an aggregate borrowing capacity of $1.1 billion, an unsecured commercial paper program with an aggregate borrowing capacity of $500 million, $400 million of medium-term notes due January 2022, a $350 million term loan due September 2023, $300 million of medium-term notes due July 2024, $300 million of medium-term notes due October 2025, $300 million of medium-term notes due September 2026, $300 million of medium-term notes due July 2027, $300 million of medium-term notes due January 2028, $300 million of medium-term notes due January 2029, $300 million of medium-term notes due January 2030, and $400 million of medium-term notes due August 2031. As of September 30, 2019 and December 31, 2018, the General Partner did not have an outstanding balance under the unsecured revolving credit facility and had $60.0 million and $101.1 million, respectively, outstanding under its unsecured commercial paper program. In October 2019, the General Partner issued $100.0 million of 3.20% senior unsecured medium-term notes due 2030 and $300.0 million of 3.10% senior unsecured medium-term notes due 2034. The General Partner will use the net proceeds for the repayment of its $400.0 million aggregate principal amount (plus the make-whole amount of approximately $21.5 million and accrued and unpaid interest) of its 4.63% senior unsecured medium-term notes due January 2022. The 2034 notes were issued as “green” bonds and, as a result, the General Partner intends to allocate the net proceeds from the sale of the 2034 notes to fund eligible green projects, including previously incurred development costs related to properties that have received at least a LEED Silver certification. The 2030 notes are a further issuance of, and form a single series with the $300.0 million aggregate principal amounts of the General Partner’s 3.20% notes due 2030 that were issued on July 2, 2019. As of the completion of the offering, the aggregate principal amount of outstanding 2030 notes was $400.0 million. |
RELATED PARTY TRANSACTIONS (UNI
RELATED PARTY TRANSACTIONS (UNITED DOMINION REALTY, L.P.) | 9 Months Ended |
Sep. 30, 2019 | |
United Dominion Realty L.P. | |
Entity information | |
RELATED PARTY TRANSACTIONS | 7. RELATED PARTY TRANSACTIONS Allocation of General and Administrative Expenses The General Partner shares various general and administrative costs, employees and other overhead costs with the Operating Partnership including legal assistance, acquisitions analysis, marketing, human resources, IT, accounting, rent, supplies and advertising, and allocates these costs to the Operating Partnership first on the basis of direct usage when identifiable, with the remainder allocated based on the reasonably anticipated benefits to the parties. The general and administrative expenses allocated to the Operating Partnership by UDR were $2.7 million and $3.3 million during the three months ended September 30, 2019 and 2018, respectively, and $9.7 million and $10.5 million during the nine months ended September 30, 2019 and 2018, respectively, and are included in General and administrative During the three months ended September 30, 2019 and 2018, the Operating Partnership reimbursed the General Partner $4.6 million and $3.8 million, respectively, and during the nine months ended September 30, 2019 and 2018, the Operating Partnership reimbursed the General Partner $12.7 million and $11.4 million, respectively, for shared services related to corporate level property management costs incurred by the General Partner. These shared cost reimbursements are initially recorded within the line item General and administrative Property management Shared Services The Operating Partnership self-manages its own properties and is party to an Inter-Company Employee and Cost Sharing Agreement with the General Partner. This agreement provides for reimbursements to the General Partner for the Operating Partnership’s allocable share of costs incurred by the General Partner for (a) shared services of corporate level property management employees and related support functions and costs, and (b) general and administrative costs. As discussed above, the reimbursement for shared services is classified in Property management Notes Payable to the General Partner The following table summarizes the Operating Partnership’s Notes payable due to the General Partner as of September 30, 2019 and December 31, 2018 ( dollars in thousands Interest rate at Balance Outstanding September 30, September 30, December 31, 2019 2019 2018 Note due August 2021 5.34 % $ 5,500 $ 5,500 Note due December 2023 5.18 % 83,196 83,196 Note due April 2026 4.12 % 184,638 184,638 Note due November 2028 4.69 % 133,205 133,205 Note due December 2028 (a) 3.63 % 217,428 293,576 Total notes payable due to the General Partner $ 623,967 $ 700,115 (a) In December 2018, the Operating Partnership converted the remaining outstanding portion of the Advances (to)/from the General Partner capital balance in connection with entering into an unsecured revolving note payable with the General Partner. There is no limit on the total commitments under this note. Interest is incurred on the unpaid principal balance at a variable interest rate equivalent to the General Partner’s weighted average interest rate on borrowings, or 3.63% as of September 30, 2019. The note matures on December 1, 2028. To the extent there is an outstanding principal balance on the revolving note payable, the General Partner, at its discretion, can demand payment at any time prior to the stated maturity date of the note, Certain limited partners of the Operating Partnership have provided guarantees or reimbursement agreements related to these notes payable. The guarantees were provided by the limited partners in conjunction with their contribution of properties to the Operating Partnership. The Operating Partnership recognized interest expense on the notes payable of $7.0 million and $3.1 million during the three months ended September 30, 2019 and 2018, respectively, and $21.4 million and $9.2 million during the nine months ended September 30, 2019 and 2018, respectively. |
FAIR VALUE OF DERIVATIVES AND_4
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS (UNITED DOMINION REALTY, L.P.) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | 10. FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS Fair value is based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: ● Level 1 — Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. ● Level 2 — Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. ● Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The estimated fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis as of September 30, 2019 and December 31, 2018, are summarized as follows (dollars in thousands) Fair Value at September 30, 2019, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable September 30, September 30, Liabilities Inputs Inputs 2019 2019 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 37,899 $ 42,613 $ — $ — $ 42,613 Derivatives - Interest rate contracts (b) 730 730 — 730 — Total assets $ 38,629 $ 43,343 $ — $ 730 $ 42,613 Derivatives - Interest rate contracts (b) $ 469 $ 469 $ — $ 469 $ — Secured debt instruments - fixed rate: (c) Mortgage notes payable 575,965 569,318 — — 569,318 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 27,000 27,000 — — 27,000 Unsecured debt instruments: (c) Working capital credit facility 34,447 34,447 — — 34,447 Commercial paper program 60,000 60,000 — — 60,000 Unsecured notes 3,260,258 3,415,618 — — 3,415,618 Total liabilities $ 3,958,139 $ 4,106,852 $ — $ 469 $ 4,106,383 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 1,072,181 $ 1,072,181 $ — $ 1,072,181 $ — Fair Value at December 31, 2018, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable December 31, December 31, Liabilities Inputs Inputs 2018 2018 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 42,259 $ 45,026 $ — $ — $ 45,026 Derivatives - Interest rate contracts (b) 4,757 4,757 — 4,757 — Total assets $ 47,016 $ 49,783 $ — $ 4,757 $ 45,026 Derivatives - Interest rate contracts (b) $ 356 $ 356 $ — $ 356 $ — Secured debt instruments - fixed rate: (c) Mortgage notes payable 417,989 416,314 — — 416,314 Fannie Mae credit facility 90,000 90,213 — — 90,213 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 94,700 94,700 — — 94,700 Unsecured debt instruments: (c) Working capital credit facility 16 16 — — 16 Commercial paper program 101,115 101,115 — — 101,115 Unsecured notes 2,861,842 2,829,390 — — 2,829,390 Total liabilities $ 3,566,018 $ 3,532,104 $ — $ 356 $ 3,531,748 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 972,740 $ 972,740 $ — $ 972,740 $ — (a) See Note 2, Significant Accounting Policies . (b) See Note 11, Derivatives and Hedging Activity . (c) See Note 7, Secured and Unsecured Debt, Net . (d) See Note 9, Noncontrolling Interests. There were no transfers into or out of any of the levels of the fair value hierarchy during the nine months ended September 30, 2019. Financial Instruments Carried at Fair Value The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair values of interest rate options are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2019 and December 31, 2018, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. In conjunction with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership have a redemption feature and are marked to their redemption value. The redemption value is based on the fair value of the Company’s common stock at the redemption date, and therefore, is calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership are classified as Level 2. Financial Instruments Not Carried at Fair Value At September 30, 2019 and December 31, 2018, the fair values of cash and cash equivalents, restricted cash, accounts receivable, prepaids, real estate taxes payable, accrued interest payable, security deposits and prepaid rent, distributions payable and accounts payable approximated their carrying values because of the short term nature of these instruments. The estimated fair values of other financial instruments, which includes notes receivable and debt instruments, are classified in Level 3 of the fair value hierarchy due to the significant unobservable inputs that are utilized in their respective valuations. We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by the future operation and disposition of those assets are less than the net book value of those assets. Our cash flow estimates are based upon historical results adjusted to reflect our best estimate of future market and operating conditions and our estimated holding periods. The net book value of impaired assets is reduced to fair value. Our estimates of fair value represent our best estimate based upon Level 3 inputs such as industry trends and reference to market rates and transactions. We consider various factors to determine if a decrease in the value of our Investment in and advances to unconsolidated joint ventures, net After determining an other-than-temporary decrease in the value of an equity method investment has occurred, we estimate the fair value of our investment by estimating the proceeds we would receive upon a hypothetical liquidation of the investment at the date of measurement. Inputs reflect management’s best estimate of what market participants would use in pricing the investment giving consideration to the terms of the joint venture agreement and the estimated discounted future cash flows to be generated from the underlying joint venture assets. The inputs and assumptions utilized to estimate the future cash flows of the underlying assets are based upon the Company’s evaluation of the economy, market trends, operating results, and other factors, including judgments regarding costs to complete any construction activities, lease up and occupancy rates, rental rates, inflation rates, capitalization rates utilized to estimate the projected cash flows at the disposition, and discount rates. |
United Dominion Realty L.P. | |
Entity information | |
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS | 8. FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS Fair value is based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level valuation hierarchy prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: ● Level 1 — Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. ● Level 2 — Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. ● Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The estimated fair values of the Operating Partnership’s financial instruments either recorded or disclosed on a recurring basis as of September 30, 2019 and December 31, 2018 are summarized as follows (dollars in thousands) Fair Value at September 30, 2019, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable September 30, September 30, Liabilities Inputs Inputs 2019 2019 (Level 1) (Level 2) (Level 3) Description: Secured debt instruments - fixed rate: (a) Mortgage notes payable $ 72,500 $ 68,669 $ — $ — $ 68,669 Secured debt instruments - variable rate: (a) Tax-exempt secured notes payable 27,000 27,000 — — 27,000 Total liabilities $ 99,500 $ 95,669 $ — $ — $ 95,669 Fair Value at December 31, 2018, Using Quoted Total Prices in Carrying Active Amount in Markets Statement of for Identical Significant Financial Fair Value Assets Other Significant Position at Estimate at or Observable Unobservable December 31, December 31, Liabilities Inputs Inputs 2018 2018 (Level 1) (Level 2) (Level 3) Description: Secured debt instruments - variable rate: (a) Tax-exempt secured notes payable $ 27,000 $ 27,000 $ — $ — $ 27,000 Total liabilities $ 27,000 $ 27,000 $ — $ — $ 27,000 (a) See Note 6, Debt, Net. There were no transfers into or out of each of the levels of the fair value hierarchy during the nine months ended September 30, 2019. Financial Instruments Carried at Fair Value The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair values of interest rate options are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The General Partner, on behalf of the Operating Partnership, incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Operating Partnership has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the General Partner, on behalf of the Operating Partnership, has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2019 and December 31, 2018, the Operating Partnership has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Operating Partnership has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. In conjunction with the FASB’s fair value measurement guidance, the Operating Partnership made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Financial Instruments Not Carried at Fair Value As of September 30, 2019, the fair values of cash and cash equivalents, restricted cash, accounts receivable, prepaids, real estate taxes payable, accrued interest payable, security deposits and prepaid rent, distributions payable and accounts payable approximated their carrying values because of the short term nature of these instruments. The estimated fair values of other financial instruments, which includes debt instruments, are classified in Level 3 of the fair value hierarchy due to the significant unobservable inputs that are utilized in their respective valuations. The Operating Partnership records impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by the future operation and disposition of those assets are less than the net book value of those assets. Cash flow estimates are based upon historical results adjusted to reflect management’s best estimate of future market and operating conditions and our estimated holding periods. The net book value of impaired assets is reduced to fair value. The General Partner’s estimates of fair value represent management’s estimates based upon Level 3 inputs such as industry trends and reference to market rates and transactions. The Operating Partnership did not incur any other-than-temporary impairments in the value of its investments in unconsolidated entities during the three and nine months ended September 30, 2019 and 2018. |
DERIVATIVES AND HEDGING ACTIV_8
DERIVATIVES AND HEDGING ACTIVITY (UNITED DOMINION REALTY, L.P.) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
DERIVATIVES AND HEDGING ACTIVITY | 11. DERIVATIVES AND HEDGING ACTIVITY Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in Accumulated other comprehensive income/(loss), net Amounts reported in Accumulated other comprehensive income/(loss), net Interest expense As of September 30, 2019, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk ( dollars in thousands Number of Product Instruments Notional Interest rate swaps (a) 4 $ 315,000 (a) In addition to the interest rate swaps summarized above, the Company entered into an additional interest rate swap with a notional value of $315.0 million that will become effective in January 2020 upon the maturity of the interest rate swaps summarized above. Additionally, the Company had previously entered into two additional interest rate swaps with a notional value totaling $75.0 million that were subsequently terminated and settled during the nine months ended September 30, 2019 in conjunction with the July 2019 issuance of $300.0 million of senior unsecured medium-term notes as disclosed in Note 7, Secured and Unsecured, Net Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in no gain or loss for both the three and nine months ended September 30, 2019 and 2018. As of September 30, 2019, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships ( dollars in thousands Number of Product Instruments Notional Interest rate caps 1 $ 19,880 Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 ( dollars in thousands Asset Derivatives Liability Derivatives (included in Other assets ) (included in Other liabilities ) Fair Value at: Fair Value at: September 30, December 31, September 30, December 31, 2019 2018 2019 2018 Derivatives designated as hedging instruments: Interest rate products $ 730 $ 4,757 $ 469 $ 356 Tabular Disclosure of the Effect of Derivative Instruments on the Consolidated Statements of Operations The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018 ( dollars in thousands Gain/(Loss) Recognized in Gain/(Loss) Reclassified Interest expense Unrealized holding gain/(loss) from Accumulated OCI into (Amount Excluded from Recognized in OCI Interest expense Effectiveness Testing) Derivatives in Cash Flow Hedging Relationships 2019 2018 2019 2018 2019 2018 Three Months Ended September 30, Interest rate products $ (659) $ 2,320 $ 624 $ 564 $ — $ — Nine Months Ended September 30, Interest rate products $ (7,181) $ 4,312 $ 2,504 $ 1,162 $ — $ — Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total amount of Interest expense $ 42,523 $ 34,401 $ 110,482 $ 95,942 The Company did not recognize any gain/(loss) in Interest income and other income/(expense), net Credit-risk-related Contingent Features The Company has agreements with its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. The Company has certain agreements with some of its derivative counterparties that contain a provision where, in the event of default by the Company or the counterparty, the right of setoff may be exercised. Any amount payable to one party by the other party may be reduced by its setoff against any amounts payable by the other party. Events that give rise to default by either party may include, but are not limited to, the failure to pay or deliver payment under the derivative agreement, the failure to comply with or perform under the derivative agreement, bankruptcy, a merger without assumption of the derivative agreement, or in a merger, a surviving entity’s creditworthiness is materially weaker than the original party to the derivative agreement. As of September 30, 2019, the fair value of derivatives was in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, of $0.5 million. Tabular Disclosure of Offsetting Derivatives The Company has elected not to offset derivative positions on the consolidated financial statements. The tables below present the effect on its financial position had the Company made the election to offset its derivative positions as of September 30, 2019 and December 31, 2018 (dollars in thousands): Gross Net Amounts of Gross Amounts Not Offset Amounts Assets in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Assets Assets Sheets (a) Instruments Received Net Amount September 30, 2019 $ 730 $ — $ 730 $ (371) $ — $ 359 December 31, 2018 $ 4,757 $ — $ 4,757 $ — $ — $ 4,757 (a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. Gross Net Amounts of Gross Amounts Not Offset Amounts Liabilities in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Liabilities Liabilities Sheets (a) Instruments Posted Net Amount September 30, 2019 $ 469 $ — $ 469 $ (371) $ — $ 98 December 31, 2018 $ 356 $ — $ 356 $ — $ — $ 356 (a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
United Dominion Realty L.P. | |
Entity information | |
DERIVATIVES AND HEDGING ACTIVITY | 9. DERIVATIVES AND HEDGING ACTIVITY Risk Management Objective of Using Derivatives The Operating Partnership is exposed to certain risks arising from both its business operations and economic conditions. The General Partner principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The General Partner manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the General Partner enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The General Partner’s and the Operating Partnership’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the General Partner’s known or expected cash payments principally related to the General Partner’s borrowings. Cash Flow Hedges of Interest Rate Risk The General Partner’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the General Partner primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the General Partner making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an upfront premium. A portion of the General Partner’s interest rate derivatives are owed by the Operating Partnership based on the General Partner’s underlying debt instruments owed by the Operating Partnership. (See Note 6, Debt, Net. The changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated other comprehensive income/(loss), net Amounts reported in Accumulated other comprehensive income/(loss), net Derivatives not designated as hedges are not speculative and are used to manage the Operating Partnership’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in no gain or loss for each of the three and nine months ended September 30, 2019 and 2018. As of September 30, 2019, we had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships ( dollars in thousands Number of Product Instruments Notional Interest rate caps 1 $ 19,880 Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets As of September 30, 2019 and December 31, 2018, the fair value of the Operating Partnership’s derivative financial instruments was zero. Tabular Disclosure of the Effect of Derivative Instruments on the Consolidated Statements of Operations During the three and nine months ended September 30, 2019 and 2018, the Operating Partnership’s derivative instruments did not impact the Consolidated Statement of Operations. Credit-risk-related Contingent Features The General Partner has agreements with its derivative counterparties that contain a provision where the General Partner could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the General Partner’s default on the indebtedness. The General Partner has certain agreements with some of its derivative counterparties that contain a provision where, in the event of default by the General Partner or the counterparty, the right of setoff may be exercised. Any amount payable to one party by the other party may be reduced by its setoff against any amounts payable by the other party. Events that give rise to default by either party may include, but are not limited to, the failure to pay or deliver payment under the derivative agreement, the failure to comply with or perform under the derivative agreement, bankruptcy, a merger without assumption of the derivative agreement, or in a merger, a surviving entity’s creditworthiness is materially weaker than the original party to the derivative agreement. |
CAPITAL STRUCTURE (UNITED DOMIN
CAPITAL STRUCTURE (UNITED DOMINION REALTY, L.P.) | 9 Months Ended |
Sep. 30, 2019 | |
United Dominion Realty L.P. | |
Entity information | |
CAPITAL STRUCTURE | 10. CAPITAL STRUCTURE General Partnership Units The General Partner has complete discretion to manage and control the operations and business of the Operating Partnership, which includes but is not limited to the acquisition and disposition of real property, construction of buildings and making capital improvements, and the borrowing of funds from outside lenders or UDR and its subsidiaries to finance such activities. The General Partner can generally authorize, issue, sell, redeem or purchase any OP Unit or securities of the Operating Partnership without the approval of the limited partners. The General Partner can also approve, with regard to the issuances of OP Units, the class or one or more series of classes, with designations, preferences, participating, optional or other special rights, powers and duties including rights, powers and duties senior to limited partnership interests without approval of any limited partners except holders of Class A Limited Partnership Units. There were 110,883 General Partnership units outstanding at September 30, 2019 and December 31, 2018, all of which were held by UDR. Limited Partnership Units As of September 30, 2019 and December 31, 2018, there were 183,952,659 and 183,525,660, respectively, of limited partnership units outstanding, of which 1,873,332 were Class A Limited Partnership Units for both periods. UDR owned 176,099,189, or 95.7%, and 174,137,816, or 94.9%, of OP Units outstanding at September 30, 2019 and December 31, 2018, respectively, of which 121,661 were Class A Limited Partnership Units for both periods. The remaining 7,853,470, or 4.3%, and 9,387,844, or 5.1%, of OP Units outstanding were held by non-affiliated partners at September 30, 2019 and December 31, 2018, respectively, of which 1,751,671 were Class A Limited Partnership Units for both periods. Subject to the terms of the Operating Partnership Agreement, the limited partners have the right to require the Operating Partnership to redeem all or a portion of the OP Units held by the limited partner at a redemption price equal to and in the form of the Cash Amount (as defined in the Operating Partnership Agreement), provided that such OP Units have been outstanding for at least one year. UDR, as general partner of the Operating Partnership, may, in its sole discretion, purchase the OP Units by paying to the limited partner either the Cash Amount or the REIT Share Amount (generally one share of common stock of UDR for each OP Unit), as defined in the Operating Partnership Agreement. The non-affiliated limited partners’ capital is adjusted to redemption value at the end of each reporting period with the corresponding offset against UDR’s limited partner capital account based on the redemption rights noted above. The aggregate value upon redemption of the then-outstanding OP Units held by non-affiliated limited partners was $380.7 million and $371.9 million as of September 30, 2019 and December 31, 2018, respectively, based on the value of UDR’s common stock at each period end. A limited partner has no right to receive any distributions from the Operating Partnership on or after the date of redemption of its OP Units. Class A Limited Partnership Units Class A Limited Partnership Units have a cumulative, annual, non-compounded preferred return, which is equal to 8% based on a value of $16.61 per Class A Limited Partnership Unit. Holders of the Class A Limited Partnership Units exclusively possess certain voting rights. The Operating Partnership may not do the following without approval of the holders of the Class A Limited Partnership Units: (i) increase the authorized or issued amount of Class A Limited Partnership Units, (ii) reclassify any other partnership interest into Class A Limited Partnership Units, (iii) create, authorize or issue any obligations or security convertible into or the right to purchase Class A Limited Partnership Units, (iv) enter into a merger or acquisition, or (v) amend or modify the Operating Partnership Agreement in a manner that adversely affects the relative rights, preferences or privileges of the Class A Limited Partnership Units. The following table shows OP Units outstanding and OP Unit activity as of and for the nine months ended September 30, 2019: UDR, Inc. Class A Class A Limited Limited Limited Limited General Partners Partners Partner Partner Partner Total Ending balance at December 31, 2018 1,751,671 7,636,173 174,016,155 121,661 110,883 183,636,543 Vesting of LTIP Units — 426,999 — — — 426,999 OP redemptions for UDR stock — (1,961,373) 1,961,373 — — — Ending balance at September 30, 2019 1,751,671 6,101,799 175,977,528 121,661 110,883 184,063,542 LTIP Units UDR grants long-term incentive plan units (“LTIP Units”) to certain employees and non-employee directors. The LTIP Units represent an ownership interest in the Operating Partnership and have voting and distribution rights consistent with OP Units. The LTIP Units are subject to the terms of UDR’s long-term incentive plan. Two classes of LTIP Units are granted, Class 1 LTIP Units and Class 2 LTIP Units. Class 1 LTIP Units are granted to certain employees and non-employee directors and vest over a period of up to four years. Class 2 LTIP Units are granted to certain employees and vest over a period from one to three years subject to certain performance and market conditions being achieved. Vested LTIP Units may be converted into OP Units provided that such LTIP Units have been outstanding for at least two years from the date of grant. Allocation of Profits and Losses Profit of the Operating Partnership is allocated in the following order: (i) to the General Partner and the Limited Partners in proportion to and up to the amount of cash distributions made during the year, and (ii) to the General Partner and Limited Partners in accordance with their percentage interests. Losses and depreciation and amortization expenses, non-recourse liabilities are allocated to the General Partner and Limited Partners in accordance with their percentage interests. Losses allocated to the Limited Partners are capped to the extent that such an allocation would not cause a deficit in the Limited Partners’ capital account. Such losses are, therefore, allocated to the General Partner. If any Partner’s capital balance were to fall into a deficit, any income and gains are allocated to each Partner sufficient to eliminate its negative capital balance. |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (UNITED DOMINION REALTY, L.P.) Commitments and Contingencies (UNITED DOMINION REALTY, L.P.) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES Commitments Real Estate Commitments The following summarizes the Company’s real estate commitments at September 30, 2019 ( dollars in thousands Number UDR's UDR's Remaining Properties Investment (a) Commitment Wholly-owned — under development 1 $ 21,845 $ 75,655 Wholly-owned — redevelopment 2 11,582 23,918 Joint ventures: Unconsolidated joint ventures - development 1 14,402 21,496 (b) Preferred equity investments 2 53,781 (c) 27,390 (d) Other investments - 12,926 9,000 (e) Total $ 114,536 $ 157,459 (a) Represents UDR’s investment as of September 30, 2019. (b) Represents UDR’s proportionate share of expected remaining costs to complete the development. (c) Represents UDR’s investment in 1300 Fairmount and Modera Lake Merritt for the properties under development as of September 30, 2019. (d) Represents UDR’s remaining commitment for 1300 Fairmount and Modera Lake Merritt. (e) Represents UDR’s remaining commitment for other investment ventures. Purchase Commitments In 2019, the Company entered into a contract to purchase a development land parcel located in King of Prussia, Pennsylvania for a purchase price of approximately $14.8 million. The Company made a $0.8 million deposit on the purchase, which is generally non-refundable other than due to a failure of closing conditions pursuant to the terms of the purchase agreement. The acquisition is expected to close in 2020, subject to customary closing conditions. Contingencies Litigation and Legal Matters The Company is subject to various legal proceedings and claims arising in the ordinary course of business. The Company cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The Company believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on our financial condition, results of operations or cash flows. |
United Dominion Realty L.P. | |
Entity information | |
COMMITMENTS AND CONTINGENCIES | 11. COMMITMENTS AND CONTINGENCIES Commitments Real Estate Commitments The following summarizes the Operating Partnership’s real estate commitments at September 30, 2019 ( dollars in thousands Number Operating Partnership's Properties Investment Remaining Commitment Real estate communities - redevelopment 1 $ 6,254 $ 18,746 Contingencies Litigation and Legal Matters The Operating Partnership is subject to various legal proceedings and claims arising in the ordinary course of business. The Operating Partnership cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The General Partner believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on the Operating Partnership’s financial condition, results of operations or cash flows. |
REPORTABLE SEGMENTS (UNITED DOM
REPORTABLE SEGMENTS (UNITED DOMINION REALTY, L.P.) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
REPORTABLE SEGMENTS | 14. REPORTABLE SEGMENTS GAAP guidance requires that segment disclosures present the measure(s) used by the Chief Operating Decision Maker to decide how to allocate resources and for purposes of assessing such segments’ performance. UDR’s Chief Operating Decision Maker is comprised of several members of its executive management team who use several generally accepted industry financial measures to assess the performance of the business for our reportable operating segments. UDR owns and operates multifamily apartment communities that generate rental and other property related income through the leasing of apartment homes to a diverse base of tenants. The primary financial measures for UDR’s apartment communities are rental income and net operating income (“NOI”). Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. NOI is defined as rental income less direct property rental expenses. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI is property management expense, which is calculated as 2.875% of property revenue to cover the regional supervision and accounting costs related to consolidated property operations, and land rent. UDR’s Chief Operating Decision Maker utilizes NOI as the key measure of segment profit or loss. UDR’s two reportable segments are Same-Store Communities Non-Mature Communities/Other ● Same-Store Communities represent those communities acquired, developed, and stabilized prior to July 1, 2018 (for quarter-to-date comparison) or January 1, 2018 (for year-to-date comparison) and held as of September 30, 2019. A comparison of operating results from the prior year is meaningful as these communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior period, there is no plan to conduct substantial redevelopment activities, and the community is not held for disposition within the current year. A community is considered to have stabilized occupancy once it achieves 90% occupancy for at least three consecutive months. ● Non-Mature Communities/Other represent those communities that do not meet the criteria to be included in Same-Store Communities , including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed use properties. Management evaluates the performance of each of our apartment communities on a Same-Store Community Non-Mature Community/Other Revenue is measured based on consideration specified in contracts with customers. The Company recognizes revenue when it satisfies a performance obligation by providing the services specified in a contract to the customer. All revenues are from external customers and no single tenant or related group of tenants contributed 10% or more of UDR’s total revenues during the three and nine months ended September 30, 2019 and 2018. The following is a description of the principal streams from which the Company generates its revenue: Lease Revenue Lease revenue related to leases is recognized on an accrual basis when due from residents or tenants in accordance with ASC 842, Leases Lease revenue also includes all pass-through revenue from retail and residential leases and common area maintenance reimbursements from retail leases. These services represent non-lease components in a contract as the Company transfers a service to the lessee other than the right to use the underlying asset. The Company has elected the practical expedient under the leasing standard to not separate lease and non-lease components from its resident and retail lease contracts as the timing and pattern of revenue recognition for the non-lease component and related lease component are the same and the combined single lease component would be classified as an operating lease. Other Revenue Joint venture management and other fees The Joint venture management and other fees Joint venture management and other fees The following table details rental income and NOI for UDR’s reportable segments for the three and nine months ended September 30, 2019 and 2018, and reconciles NOI to Net income/(loss) attributable to UDR, Inc. (dollars in thousands) Three Months Ended Nine Months Ended September 30, (a) September 30, (b) 2019 2018 2019 2018 Reportable apartment home segment lease revenue Same-Store Communities West Region $ 99,316 $ 95,447 $ 293,294 $ 281,722 Mid-Atlantic Region 52,826 51,291 157,179 152,867 Southeast Region 28,540 27,773 84,551 81,554 Northeast Region 30,196 29,491 89,650 87,776 Southwest Region 15,451 15,060 40,705 39,586 Non-Mature Communities/Other 40,975 24,237 106,499 66,906 Total segment and consolidated rental income $ 267,304 $ 243,299 $ 771,878 $ 710,411 Reportable apartment home segment other revenue Same-Store Communities West Region $ 7,869 $ 7,168 $ 23,488 $ 21,567 Mid-Atlantic Region 4,376 4,032 12,958 11,944 Southeast Region 3,438 3,211 10,423 9,918 Northeast Region 1,321 1,226 3,753 3,422 Southwest Region 1,527 1,525 4,100 3,986 Non-Mature Communities/Other 3,173 2,795 8,793 9,125 Total segment and consolidated rental income $ 21,704 $ 19,957 $ 63,515 $ 59,962 Total reportable apartment home segment rental income Same-Store Communities West Region $ 107,185 $ 102,615 $ 316,782 $ 303,289 Mid-Atlantic Region 57,202 55,323 170,137 164,811 Southeast Region 31,978 30,984 94,974 91,472 Northeast Region 31,517 30,717 93,403 91,198 Southwest Region 16,978 16,585 44,805 43,572 Non-Mature Communities/Other 44,148 27,032 115,292 76,031 Total segment and consolidated rental income $ 289,008 $ 263,256 $ 835,393 $ 770,373 Reportable apartment home segment NOI Same-Store Communities West Region $ 81,170 $ 77,321 $ 240,442 $ 229,129 Mid-Atlantic Region 39,850 38,220 119,075 114,465 Southeast Region 22,133 21,597 66,301 63,806 Northeast Region 20,560 20,640 63,012 62,710 Southwest Region 10,449 9,899 26,995 25,760 Non-Mature Communities/Other 29,487 17,137 77,242 48,833 Total segment and consolidated NOI 203,649 184,814 593,067 544,703 Reconciling items: Joint venture management and other fees 6,386 2,888 11,982 8,819 Property management (8,309) (7,240) (24,018) (21,185) Other operating expenses (2,751) (3,314) (11,132) (8,148) Real estate depreciation and amortization (127,391) (107,881) (357,793) (322,537) General and administrative (12,197) (11,896) (37,002) (36,028) Casualty-related (charges)/recoveries, net 1,088 (678) 842 (2,364) Other depreciation and amortization (1,619) (1,682) (4,953) (5,057) Gain/(loss) on sale of real estate owned — — 5,282 70,300 Income/(loss) from unconsolidated entities 12,713 (1,382) 19,387 (5,091) Interest expense (42,523) (34,401) (110,482) (95,942) Interest income and other income/(expense), net 1,875 1,188 12,998 5,075 Tax (provision)/benefit, net (1,499) (158) (3,836) (618) Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (2,162) (1,616) (6,871) (10,819) Net (income)/loss attributable to noncontrolling interests (56) (32) (145) (141) Net income/(loss) attributable to UDR, Inc. $ 27,204 $ 18,610 $ 87,326 $ 120,967 (a) Same-Store Community population consisted of 38,177 apartment homes. (b) Same-Store Community population consisted of 37,959 apartment homes. The following table details the assets of UDR’s reportable segments as of September 30, 2019 and December 31, 2018 (dollars in thousands) September 30, December 31, 2019 2018 Reportable apartment home segment assets: Same-Store Communities (a): West Region $ 3,797,149 $ 3,763,366 Mid-Atlantic Region 2,338,963 2,317,369 Southeast Region 799,739 779,310 Northeast Region 1,498,500 1,491,994 Southwest Region 595,982 589,188 Non-Mature Communities/Other 2,534,062 1,254,932 Total segment assets 11,564,395 10,196,159 Accumulated depreciation (4,000,608) (3,654,160) Total segment assets — net book value 7,563,787 6,541,999 Reconciling items: Cash and cash equivalents 1,895 185,216 Restricted cash 21,646 23,675 Notes receivable, net 37,899 42,259 Investment in and advances to unconsolidated joint ventures, net 791,180 780,869 Operating lease right-of-use assets 135,889 — Other assets 145,301 137,710 Total consolidated assets $ 8,697,597 $ 7,711,728 (a) Same-Store Community population consisted of 38,177 apartment homes. Markets included in the above geographic segments are as follows: i. West Region — Orange County, San Francisco, Seattle, Los Angeles, Monterey Peninsula, Other Southern California and Portland ii. Mid-Atlantic Region — Metropolitan D.C., Richmond and Baltimore iii. Southeast Region — Orlando, Nashville, Tampa and Other Florida iv. Northeast Region — New York and Boston v. Southwest Region — Dallas, Austin and Denver |
United Dominion Realty L.P. | |
Entity information | |
REPORTABLE SEGMENTS | 12. REPORTABLE SEGMENTS GAAP guidance requires that segment disclosures present the measure(s) used by the Chief Operating Decision Maker to decide how to allocate resources and for purposes of assessing such segments’ performance. The Operating Partnership has the same Chief Operating Decision Maker as that of its parent, the General Partner. The Chief Operating Decision Maker consists of several members of UDR’s executive management team who use several generally accepted industry financial measures to assess the performance of the business for our reportable operating segments. The Operating Partnership owns and operates multifamily apartment communities throughout the United States that generate rental and other property related income through the leasing of apartment homes to a diverse base of tenants. The primary financial measures of the Operating Partnership’s apartment communities are rental income and net operating income (“NOI”), and are included in the Chief Operating Decision Maker’s assessment of the Operating Partnership’s performance on a consolidated basis. Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. NOI is defined as total revenues less direct property operating expenses. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI are property management costs, which are the Operating Partnership’s allocable share of costs incurred by the General Partner for shared services of corporate level property management employees and related support functions and costs. The Chief Operating Decision Maker of the General Partner utilizes NOI as the key measure of segment profit or loss. The Operating Partnership’s two reportable segments are Same-Store Communities Non-Mature Communities/Other: ● Same-Store Communities represent those communities acquired, developed, and stabilized prior to July 1, 2018 (for the quarter-to-date comparison) or January 1, 2018 (for the year-to-date) and held as of September 30, 2019. A comparison of operating results from the prior year is meaningful as these communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior period, there is no plan to conduct substantial redevelopment activities, and the community is not held for disposition within the current year. A community is considered to have stabilized occupancy once it achieves 90% occupancy for at least three consecutive months. ● Non-Mature Communities/Other represent those communities that do not meet the criteria to be included in Same-Store Communities , including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed use properties. Management of the General Partner evaluates the performance of each of the Operating Partnership’s apartment communities on a Same-Store Community Non-Mature Community/Other All revenues are from external customers and no single tenant or related group of tenants contributed 10% or more of the Operating Partnership’s total revenues during the three and nine months ended September 30, 2019 and 2018. The following is a description of the principal streams from which the Operating Partnership generates its revenue: Lease Revenue Lease revenue related to leases is recognized on an accrual basis when due from residents or tenants in accordance with ASC 842, Leases Lease revenue also includes all pass-through revenue from retail and residential leases and common area maintenance reimbursements from retail leases. These services represent non-lease components in a contract as the Operating Partnership transfers a service to the lessee other than the right to use the underlying asset. The Operating Partnership has elected the practical expedient under the leasing standard to not separate lease and non-lease components from its resident and retail lease contracts as the timing and pattern of revenue recognition for the non-lease component and related lease component are the same and the combined single lease component would be classified as an operating lease. Other Revenue The following table details rental income and NOI for the Operating Partnership’s reportable segments for the three and nine months ended September 30, 2019 and 2018, and reconciles NOI to Net income/(loss) attributable to OP unitholders (dollars in thousands) Three Months Ended Nine Months Ended September 30, (a) September 30, (b) 2019 2018 2019 2018 Reportable apartment home segment lease revenue Same-Store Communities West Region $ 62,760 $ 60,569 $ 185,840 $ 178,401 Mid-Atlantic Region 14,900 14,645 44,592 43,814 Southeast Region 12,808 12,604 37,957 36,782 Northeast Region 8,098 7,936 24,036 23,541 Southwest Region 1,901 1,865 — — Non-Mature Communities/Other 7,468 8,694 27,295 30,830 Total segment and consolidated rental income $ 107,935 $ 106,313 $ 319,720 $ 313,368 Reportable apartment home segment other revenue Same-Store Communities West Region $ 2,063 $ 1,750 $ 5,908 $ 5,484 Mid-Atlantic Region 551 441 1,515 1,359 Southeast Region 799 658 2,301 2,099 Northeast Region 187 178 521 496 Southwest Region 87 58 — — Non-Mature Communities/Other 78 141 419 591 Total segment and consolidated rental income $ 3,765 $ 3,226 $ 10,664 $ 10,029 Total reportable apartment home segment rental income Same-Store Communities West Region $ 64,823 $ 62,319 $ 191,748 $ 183,885 Mid-Atlantic Region 15,451 15,086 46,107 45,173 Southeast Region 13,607 13,262 40,258 38,881 Northeast Region 8,285 8,114 24,557 24,037 Southwest Region 1,988 1,923 — — Non-Mature Communities/Other 7,546 8,835 27,714 31,421 Total segment and consolidated rental income $ 111,700 $ 109,539 $ 330,384 $ 323,397 Reportable apartment home segment NOI Same-Store Communities West Region $ 49,528 $ 47,692 $ 146,673 $ 140,603 Mid-Atlantic Region 10,611 10,178 31,691 30,953 Southeast Region 9,371 9,336 27,984 26,979 Northeast Region 5,736 6,001 18,201 18,260 Southwest Region 1,405 1,253 — — Non-Mature Communities/Other 4,181 5,688 17,102 21,177 Total segment and consolidated NOI 80,832 80,148 241,651 237,972 Reconciling items: Property management (3,211) (3,012) (9,498) (8,893) Other operating expenses (2,301) (2,347) (7,123) (6,098) Real estate depreciation and amortization (35,155) (35,043) (104,730) (108,906) General and administrative (4,066) (4,143) (12,878) (12,997) Casualty-related (charges)/recoveries, net 1,088 10 1,169 (906) Gain/(loss) on sale of real estate owned — — — 70,300 Income/(loss) from unconsolidated entities (2,383) (2,378) (6,917) (10,102) Interest expense (7,521) (5,100) (22,247) (15,209) Net (income)/loss attributable to noncontrolling interests (448) (440) (1,252) (1,278) Net income/(loss) attributable to OP unitholders $ 26,835 $ 27,695 $ 78,175 $ 143,883 (a) Same-Store Community population consisted of 15,941 apartment homes. (b) Same-Store Community population consisted of 15,723 apartment homes. The following table details the assets of the Operating Partnership’s reportable segments as of September 30, 2019 and December 31, 2018 (dollars in thousands) September 30, December 31, 2019 2018 Reportable apartment home segment assets Same-Store Communities (a): West Region $ 2,003,088 $ 1,981,007 Mid-Atlantic Region 667,755 663,083 Southeast Region 349,767 340,722 Northeast Region 408,244 406,149 Southwest Region 144,028 141,882 Non-Mature Communities/Other 288,872 279,142 Total segment assets 3,861,754 3,811,985 Accumulated depreciation (1,762,168) (1,658,161) Total segment assets - net book value 2,099,586 2,153,824 Reconciling items: Cash and cash equivalents 40 125 Restricted cash 14,637 13,563 Investment in unconsolidated entities 82,269 103,026 Operating lease right-of-use assets 135,766 — Other assets 23,321 34,052 Total consolidated assets $ 2,355,619 $ 2,304,590 (a) Same-Store Community population consisted of 15,941 apartment homes. Markets included in the above geographic segments are as follows: i. West Region — Orange County, San Francisco, Seattle, Los Angeles, Monterey Peninsula, Other Southern California and Portland ii. Mid-Atlantic Region — Metropolitan, D.C. and Baltimore iii. Southeast Region — Nashville, Tampa and Other Florida iv. Northeast Region — New York and Boston v. Southwest Region — Denver |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (UNITED DOMINION REALTY, L.P.) (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses, In February 2016, the FASB issued ASU 2016-02, Leases The Company elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Company also elected the short-term lease exception provided for in the standard and therefore only recognizes right-of-use assets and lease liabilities for leases with a term greater than one year. The Company recognized right-of-use assets of $94.3 million and lease liabilities of $88.3 million as of January 1, 2019 upon adoption of the standard. The right-of-use assets included $6.0 million of prepaid rent and intangible assets that was included within Other assets The lease liabilities represent the present value of the remaining minimum lease payments as of January 1, 2019 and primarily relate to ground leases for communities where we are the lessee. The right-of-use assets represent our right to use an underlying asset for the lease term, which are calculated utilizing the lease liabilities plus any prepaid lease payments and intangible assets for ground leases acquired in the purchase of real estate. Our right-of-use assets and related lease liabilities recognized as of January 1, 2019 may change as a result of updates to the projected future minimum lease payments. Certain of our ground lease agreements where we are the lessee have future minimum lease payments that reset in the future based upon a percentage of the fair market value of the land at the time of the reset. The Company will continue to recognize lease expense for these leases in a manner similar to previous accounting based on our election of the package of practical expedients. However, in the event we modify existing ground leases and/or enter into new ground leases subsequent to the adoption of the standard, such leases would likely be classified as finance leases under the standard and require expense recognition based on the effective interest method. Under the standard, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, subsequent to the adoption of the standard, we are now expensing non-incremental leasing costs as incurred. In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements Leases |
Principles of Consolidation | Principles of Consolidation The Company accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Company first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. |
Real Estate Sales Gain Recognition | Real Estate Sales Gain Recognition For sale transactions resulting in a transfer of a controlling financial interest of a property, the Company generally derecognizes the related assets and liabilities from its Consolidated Balance Sheets and records the gain or loss in the period in which the transfer of control occurs. If control of the property has not transferred to the counterparty, the criteria for derecognition are not met and the Company will continue to recognize the related assets and liabilities on its Consolidated Balance Sheets. Sale transactions to entities in which the Company sells a controlling financial interest in a property but retains a noncontrolling interest are accounted for as partial sales. Partial sales resulting in a change in control are accounted for at fair value and a full gain or loss is recognized. Therefore, the Company will record a gain or loss on the partial interest sold, and the initial measurement of our retained interest will be accounted for at fair value. Sales of real estate to joint ventures or other noncontrolled investees are also accounted for at fair value and the Company will record a full gain or loss in the period the property is contributed. To the extent that the Company acquires a controlling financial interest in a property that it previously accounted for as an equity method investment, the Company will not remeasure its previously held interest if the acquisition is treated as an asset acquisition. The Company will include the carrying amount of its previously held equity method interest along with the consideration paid and transaction costs incurred in determining the amounts to allocate to the related assets and liabilities acquired on its Consolidated Balance Sheets. When treated as an asset acquisition, the Company will not recognize a gain or loss on consolidation of a property. |
Comprehensive Income/(Loss) | Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to stockholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three and nine months ended September 30, 2019 and 2018, the Company’s other comprehensive income/(loss) consisted of the gain/(loss) on derivative instruments that are designated as and qualify as cash flow hedges, (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) into earnings, and the allocation of other comprehensive income/(loss) to noncontrolling interests. The (gain)/loss on derivative instruments reclassified from other comprehensive income/(loss) is included in Interest expense Derivatives and Hedging Activity, |
Income Taxes | Income Taxes Due to the structure of the Company as a REIT and the nature of the operations for the operating properties, no provision for federal income taxes has been provided for at UDR. Historically, the Company has generally incurred only state and local excise and franchise taxes. UDR has elected for certain consolidated subsidiaries to be treated as taxable REIT subsidiaries (“TRS”). Income taxes for our TRS are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rate is recognized in earnings in the period of the enactment date. The Company’s deferred tax assets are generally the result of differing depreciable lives on capitalized assets and timing of expense recognition for certain accrued liabilities. As of September 30, 2019 and December 31, 2018, UDR’s net deferred tax asset/(liability) was $(1.3) million and less than $(0.1) million, respectively. GAAP defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. GAAP also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition. The Company recognizes its tax positions and evaluates them using a two-step process. First, UDR determines whether a tax position is more likely than not (greater than 50 percent probability) to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. UDR had no material unrecognized tax benefit, accrued interest or penalties at September 30, 2019. UDR and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The tax years 2016 through 2018 remain open to examination by tax jurisdictions to which we are subject. When applicable, UDR recognizes interest and/or penalties related to uncertain tax positions in Tax (provision)/benefit, net |
United Dominion Realty L.P. | |
Entity information | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses, I n February 2016, the FASB issued ASU 2016-02, Leases . The standard amended the existing lease accounting guidance and required lessees to recognize a lease liability and a right-of-use asset for all leases on their balance sheets. Lessees of operating leases continued to recognize lease expense in a manner similar to previous accounting. For lessors, accounting for leases under the new guidance was substantially the same as in prior periods, but eliminated current real estate-specific provisions and changed the treatment of initial direct costs. The standard was effective for the Operating Partnership on January 1, 2019. The Operating Partnership elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Operating Partnership also elected the short-term lease exception provided for in the standard and therefore only recognizes right-of-use assets and lease liabilities for leases with a term greater than one year. The Operating Partnership recognized right-of-use assets of $94.2 million and lease liabilities of $88.2 million as of January 1, 2019 upon adoption of the standard. The right-of-use assets included $6.0 million of prepaid rent and intangible assets that was included within Other assets The lease liabilities represent the present value of the remaining minimum lease payments as of January 1, 2019 related to ground leases for communities where we are the lessee. The right-of-use assets represent our right to use an underlying asset for the lease term, which are calculated utilizing the lease liabilities plus any prepaid lease payments and intangible assets for ground leases acquired in the purchase of real estate. Our right-of-use assets and related lease liabilities recognized as of January 1, 2019 may change as a result of updates to the projected future minimum lease payments. Certain of our ground lease agreements where we are the lessee have future minimum lease payments that reset in the future based upon a percentage of the fair market value of the land at the time of the reset. The Operating Partnership will continue to recognize lease expense for these leases in a manner similar to previous accounting based on our election of the package of practical expedients. However, in the event we modify existing ground leases and/or enter into new ground leases subsequent to the adoption of the standard, such leases would likely be classified as finance leases under the standard and require expense recognition based on the effective interest method. Under the standard, initial direct costs for both lessees and lessors would include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, subsequent to the adoption of the standard, we are now expensing non-incremental leasing costs as incurred. In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements Leases option that permitted entities to not recast the comparative periods presented when transitioning to the standard, which the Operating Partnership also elected. |
Principles of Consolidation | Principles of Consolidation The Operating Partnership accounts for subsidiary partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with the consolidation guidance. The Operating Partnership first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Operating Partnership consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Operating Partnership consolidates an entity when it controls the entity through ownership of a majority voting interest. |
Income/(Loss) Per Operating Partnership Unit | Income/(Loss) Per Operating Partnership Unit Basic income/(loss) per OP Unit is computed by dividing net income/(loss) attributable to the general and limited partner unitholders by the weighted average number of general and limited partner units outstanding during the year. Diluted income/(loss) per OP Unit reflects the potential dilution that could occur if securities or other contracts to issue OP Units were exercised or converted into OP Units or resulted in the issuance of OP Units and then shared in the income/(loss) of the Operating Partnership. |
Real Estate Sales Gain Recognition | Real Estate Sales Gain Recognition For sale transactions resulting in a transfer of a controlling financial interest of a property, the Operating Partnership generally derecognizes the related assets and liabilities from its Consolidated Balance Sheets and records the gain or loss in the period in which the transfer of control occurs. If control of the property has not transferred to the counterparty, the criteria for derecognition are not met and the Operating Partnership will continue to recognize the related assets and liabilities on its Consolidated Balance Sheets. Sale transactions to entities in which the Operating Partnership sells a controlling financial interest in a property but retains a noncontrolling interest are accounted for as partial sales. Partial sales resulting in a change in control are accounted for at fair value and a full gain or loss is recognized. Therefore, the Operating Partnership will record a gain or loss on the partial interest sold, and the initial measurement of our retained interest will be accounted for at fair value. Sales of real estate to joint ventures or other noncontrolled investees are also accounted for at fair value and the Operating Partnership will record a full gain or loss in the period the property is contributed. To the extent that the Operating Partnership acquires a controlling financial interest in a property that it previously accounted for as an equity method investment, the Operating Partnership will not remeasure its previously held interest if the acquisition is treated as an asset acquisition. The Operating Partnership will include the carrying amount of its previously held equity method interest along with the consideration paid and transaction costs incurred in determining the amounts to allocate to the related assets and liabilities acquired on its Consolidated Balance Sheets. When treated as an asset acquisition, the Operating Partnership will not recognize a gain or loss on consolidation of a property. |
Comprehensive Income/(Loss) | Comprehensive Income/(Loss) Comprehensive income/(loss), which is defined as the change in equity during each period from transactions and other events and circumstances from nonowner sources, including all changes in equity during a period except for those resulting from investments by or distributions to unitholders, is displayed in the accompanying Consolidated Statements of Comprehensive Income/(Loss). For the three and nine months ended September 30, 2019 and 2018, the Operating Partnership’s other comprehensive income/(loss) consisted of the gain/(loss) on derivative instruments that are designated as and qualify as cash flow hedges and (gain)/loss reclassified from other comprehensive income/(loss) into earnings. The (gain)/loss reclassified from other comprehensive income/(loss) is included in Interest expense Derivatives and Hedging Activity, |
Income Taxes | Income Taxes The taxable income or loss of the Operating Partnership is reported on the tax returns of the partners. Accordingly, no provision has been made in the accompanying financial statements for federal or state income taxes on income that is passed through to the partners. However, any state or local revenue, excise or franchise taxes that result from the operating activities of the Operating Partnership are recorded at the entity level. The Operating Partnership’s tax returns are subject to examination by federal and state taxing authorities. Net income for financial reporting purposes differs from the net income for income tax reporting purposes primarily due to temporary differences, principally real estate depreciation and the tax deferral of certain gains on property sales. The differences in depreciation result from differences in the book and tax basis of certain real estate assets and the differences in the methods of depreciation and lives of the real estate assets. The Operating Partnership evaluates the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Operating Partnership’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management of the Operating Partnership is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. The Operating Partnership has no examinations in progress and none are expected at this time. Management of the Operating Partnership has reviewed all open tax years (2016 through 2018) of tax jurisdictions and concluded there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. |
REAL ESTATE OWNED (UNITED DOM_2
REAL ESTATE OWNED (UNITED DOMINION REALTY, L.P.) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
Summary of carrying amounts for real estate owned (at cost) | September 30, December 31, 2019 2018 Land $ 2,020,617 $ 1,849,799 Depreciable property — held and used: Land improvements 220,654 213,224 Building, improvements, and furniture, fixtures and equipment 9,260,709 8,133,136 Real estate intangible assets 40,570 — Under development: Land and land improvements 13,853 — Building, improvements, and furniture, fixtures and equipment 7,992 — Real estate owned 11,564,395 10,196,159 Accumulated depreciation (4,000,608) (3,654,160) Real estate owned, net $ 7,563,787 $ 6,541,999 |
United Dominion Realty L.P. | |
Entity information | |
Summary of carrying amounts for real estate owned (at cost) | September 30, December 31, 2019 2018 Land $ 711,256 $ 711,256 Depreciable property — held and used: Land improvements 95,096 92,000 Buildings, improvements, and furniture, fixtures and equipment 3,055,402 3,008,729 Real estate owned 3,861,754 3,811,985 Accumulated depreciation (1,762,168) (1,658,161) Real estate owned, net $ 2,099,586 $ 2,153,824 |
UNCONSOLIDATED ENTITIES (UNIT_2
UNCONSOLIDATED ENTITIES (UNITED DOMINION REALTY, L.P.) Unconsolidated Entities (UNITED DOMINION REALTY, L.P.) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Unconsolidated entities | |
Combined summary of balance sheets relating to unconsolidated joint ventures and partnerships | Combined summary balance sheets relating to the unconsolidated joint ventures and partnerships (not just our proportionate share) are presented below as of September 30, 2019 and December 31, 2018 ( dollars in thousands September 30, December 31, 2019 2018 Total real estate, net $ 3,101,213 $ 3,311,034 Cash and cash equivalents 56,829 49,867 Other assets 165,767 124,428 Total assets $ 3,323,809 $ 3,485,329 Third party debt, net $ 1,909,223 $ 2,125,350 Accounts payable and accrued liabilities 73,803 71,272 Total liabilities 1,983,026 2,196,622 Total equity $ 1,340,783 $ 1,288,707 |
Schedule of combined financial information relating to unconsolidated joint ventures and partnerships operations (not just proportionate share) | Combined summary financial information relating to the unconsolidated joint ventures’ and partnerships’ operations (not just our proportionate share) is presented below for the three and nine months ended September 30, 2019 and 2018 ( dollars in thousands : Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total revenues $ 75,378 $ 76,203 $ 233,836 $ 215,140 Property operating expenses 27,505 30,096 87,073 85,435 Real estate depreciation and amortization 26,027 29,545 83,661 85,063 Operating income/(loss) 21,846 16,562 63,102 44,642 Interest expense (20,779) (22,919) (64,309) (63,990) Gain/(loss) on sale of property (a) 97,201 — 115,558 — Net unrealized gain/(loss) on held investments 25,669 — 27,191 — Other income/(loss) 82 40 194 141 Net income/(loss) $ 124,019 $ (6,317) $ 141,736 $ (19,207) (a) Represent the gains on the sale of three operating communities at the UDR/KFH joint venture level, as described in note (c) to the table above summarizing the Company’s investment in and advances to unconsolidated joint ventures and partnerships, net. |
United Dominion Realty L.P. | |
Unconsolidated entities | |
Combined summary of balance sheets relating to unconsolidated joint ventures and partnerships | Combined summary balance sheets relating to all of the DownREIT Partnership (not just our proportionate share) are presented below as of September 30, 2019 and December 31, 2018 ( dollars in thousands September 30, December 31, 2019 2018 Total real estate, net $ 1,119,828 $ 1,167,720 Cash and cash equivalents 22 39 Note receivable from the General Partner 221,789 221,022 Other assets 5,259 5,561 Total assets $ 1,346,898 $ 1,394,342 Secured debt, net $ 428,457 $ 431,735 Other liabilities 25,880 26,597 Total liabilities 454,337 458,332 Total capital $ 892,561 $ 936,010 |
Schedule of combined financial information relating to unconsolidated joint ventures and partnerships operations (not just proportionate share) | Combined summary financial information relating to all of the DownREIT Partnership (not just our proportionate share) is presented below for the three and nine months ended September 30, 2019 and 2018 ( dollars in thousands : Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Rental income $ 32,434 $ 35,069 $ 96,065 $ 103,842 Property operating expenses (13,087) (14,303) (38,934) (43,180) Real estate depreciation and amortization (20,620) (22,097) (61,424) (65,704) Operating income/(loss) (1,273) (1,331) (4,293) (5,042) Interest expense (4,162) (3,343) (11,979) (10,553) Interest income on note receivable from the General Partner 2,054 1,196 6,060 3,587 Net income/(loss) $ (3,381) $ (3,478) $ (10,212) $ (12,008) |
LEASES (UNITED DOMINION REALT_2
LEASES (UNITED DOMINION REALTY, L.P.) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Lease | |
Lessee - Future minimum lease payments and total operating lease liabilities | Future minimum lease payments and total operating lease liabilities from our ground leases and office space as of September 30, 2019 are as follows (dollars in thousands): Ground Leases Office Space Total 2019 $ 1,953 $ 19 $ 1,972 2020 7,813 76 7,889 2021 7,813 32 7,845 2022 7,813 - 7,813 2023 7,813 - 7,813 Thereafter 370,467 - 370,467 Total future minimum lease payments (undiscounted) 403,672 127 403,799 Difference between future undiscounted cash flows and discounted cash flows (273,659) (5) (273,664) Total operating lease liabilities (discounted) $ 130,013 $ 122 $ 130,135 |
Lessee - components of operating lease expenses | The components of operating lease expenses from our ground leases and office space were as follows (dollars in thousands) Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Ground lease expense: Contractual lease rent expense $ 1,954 $ 6,232 Variable ground lease expense (a) 187 469 Total ground lease expense (b) 2,141 6,701 Contractual office space expense (b) 19 57 Total operating lease expense (c) $ 2,160 $ 6,758 (a) Variable ground lease expense includes adjustments such as changes in the consumer price index and payments based on a percentage of income of the lessee. (b) Ground lease expense is reported within the line item Other operating expenses and office space expense is recorded in General and administrative on the Consolidated Statements of Operations. (c) For the nine months ended September 30, 2019, Operating lease right-of-use assets and Operating lease liabilities amortized by $0.6 million and $0.3 million, respectively. The Company recorded $0.1 million and $0.3 million of total operating lease expense during the three and nine months ended September 30, 2019, respectively, due to the net impact of the amortization. |
Lessor - Future minimum lease payments | Future minimum lease payments from our retail and commercial leases as of September 30, 2019 are as follows (dollars in thousands): Retail and Commercial Leases 2019 $ 4,958 2020 20,565 2021 19,788 2022 18,094 2023 16,843 Thereafter 92,719 Total future minimum lease payments (a) $ 172,967 (a) We have excluded our apartment home leases from this table as our apartment home leases generally have initial terms of 12 months of less. |
United Dominion Realty L.P. | |
Lease | |
Lessee - Future minimum lease payments and total operating lease liabilities | Future minimum lease payments and total operating lease liabilities from our ground leases as of September 30, 2019 are as follows (dollars in thousands): Ground Leases 2019 $ 1,953 2020 7,813 2021 7,813 2022 7,813 2023 7,813 Thereafter 370,467 Total future minimum lease payments (undiscounted) 403,672 Difference between future undiscounted cash flows and discounted cash flows (273,659) Total operating lease liabilities (discounted) $ 130,013 |
Lessee - components of operating lease expenses | The components of operating lease expenses from our ground leases were as follows (dollars in thousands) Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Ground lease expense: Contractual lease rent expense $ 1,954 $ 6,232 Variable ground lease expense (a) 187 469 Total operating lease expense (b)(c) $ 2,141 $ 6,701 (a) Variable ground lease expense includes adjustments such as changes in the consumer price index and payments based on a percentage of income of the lessee. (b) Ground lease expense is reported within the line item Other operating expenses on the Consolidated Statements of Operations. (c) For the nine months ended September 30, 2019, Operating lease right-of-use assets and Operating lease liabilities amortized by $0.6 million and $0.3 million, respectively. The Operating Partnership recorded $0.1 million and $0.3 million of total operating lease expense during the three and nine months ended September 30, 2019, respectively, due to the net impact of the amortization. |
Lessor - Future minimum lease payments | Future minimum lease payments from our retail and commercial leases as of September 30, 2019 are as follows (dollars in thousands): Retail and Commercial Leases 2019 $ 1,810 2020 7,778 2021 7,442 2022 6,841 2023 6,517 Thereafter 19,874 Total future minimum lease payments (a) $ 50,262 (a) We have excluded our apartment home leases from this table as our apartment home leases generally have initial terms of 12 months of less. |
DEBT, NET (UNITED DOMINION RE_2
DEBT, NET (UNITED DOMINION REALTY, L.P.) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
Schedule of debt instruments | The following is a summary of our secured and unsecured debt at September 30, 2019 and December 31, 2018 ( dollars in thousands Principal Outstanding As of September 30, 2019 Weighted Weighted Average Average Number of September 30, December 31, Interest Years to Communities 2019 2018 Rate Maturity Encumbered Secured Debt: Fixed Rate Debt Mortgage notes payable (a) $ 575,965 $ 417,989 3.55 % 6.6 9 Fannie Mae credit facilities (b) — 90,000 — % — — Deferred financing costs (2,275) (1,343) Total fixed rate secured debt, net 573,690 506,646 3.55 % 6.6 9 Variable Rate Debt Tax-exempt secured notes payable (c) 27,000 94,700 2.07 % 12.5 1 Deferred financing costs (66) (119) Total variable rate secured debt, net 26,934 94,581 2.07 % 12.5 1 Total Secured Debt, net 600,624 601,227 3.49 % 6.8 10 Unsecured Debt: Variable Rate Debt Borrowings outstanding under unsecured credit facility due January 2023 (d) (l) — — — % 3.3 Borrowings outstanding under unsecured commercial paper program due October 2019 (e) (l) 60,000 101,115 2.28 % 0.1 Borrowings outstanding under unsecured working capital credit facility due January 2021 34,447 16 2.84 % 1.3 Term Loan due September 2023 (d) (l) 35,000 35,000 3.01 % 4.0 Fixed Rate Debt 3.70% Medium-Term Notes due October 2020 (net of discounts of $0 and $14, respectively) (k) (l) — 299,986 — % — 4.63% Medium-Term Notes due January 2022 (net of discounts of $818 and $1,087, respectively) (l) 399,182 398,913 4.63 % 2.3 1.93% Term Loan due September 2023 (d) (l) 315,000 315,000 1.93 % 4.0 3.75% Medium-Term Notes due July 2024 (net of discounts of $495 and $574, respectively) (g) (l) 299,505 299,426 3.75 % 4.8 8.50% Debentures due September 2024 15,644 15,644 8.50 % 5.0 4.00% Medium-Term Notes due October 2025 (net of discounts of $413 and $465, respectively) (h) (l) 299,587 299,535 4.00 % 6.0 2.95% Medium-Term Notes due September 2026 (l) 300,000 300,000 2.95 % 6.9 3.50% Medium-Term Notes due July 2027 (net of discounts of $547 and $600, respectively) (l) 299,453 299,400 3.50 % 7.8 3.50% Medium-Term Notes due January 2028 (net of discounts of $983 and $1,072, respectively) (l) 299,017 298,928 3.50 % 8.3 4.40% Medium-Term Notes due January 2029 (net of discounts of $6 and $6, respectively) (i) (l) 299,994 299,994 4.40 % 9.3 3.20% Medium-Term Notes due January 2030 (net of discounts of $990 and $0, respectively) (j) (l) 299,010 — 3.20 % 10.3 3.00% Medium-Term Notes due August 2031 (net of discounts of $1,148 and $0, respectively) (k) (l) 398,852 — 3.00 % 11.9 Other 14 16 Deferred financing costs (19,432) (16,413) Total Unsecured Debt, net 3,335,273 2,946,560 3.54 % 6.9 Total Debt, net $ 3,935,897 $ 3,547,787 3.63 % 6.9 |
Secured credit facilities | Further information related to the Fannie Mae credit facility is as follows (dollars in thousands) September 30, December 31, 2019 2018 Borrowings outstanding $ — $ 90,000 Weighted average borrowings during the period ended 80,000 253,813 Maximum daily borrowings during the period ended 90,000 314,869 Weighted average interest rate during the period ended 4.0 % 4.7 % Weighted average interest rate at the end of the period — % 4.0 % (c) (d) six-month extension options, subject to certain conditions. The Term Loan has a scheduled maturity date of September 30, 2023. |
Schedule of aggregate maturities, including amortizing principal payments of secured and unsecured debt | The aggregate maturities, including amortizing principal payments on secured and unsecured debt, of total debt for the next ten calendar years subsequent to September 30, 2019 are as follows (dollars in thousands): Total Fixed Total Variable Total Total Total Year Secured Debt Secured Debt Secured Debt Unsecured Debt Debt 2019 $ 974 $ — $ 974 $ 60,000 $ 60,974 2020 108,077 — 108,077 — 108,077 2021 1,117 — 1,117 34,447 35,564 2022 1,157 — 1,157 400,000 401,157 2023 41,245 — 41,245 350,000 391,245 2024 — — — 315,644 315,644 2025 127,600 — 127,600 300,000 427,600 2026 50,000 — 50,000 300,000 350,000 2027 — — — 300,000 300,000 2028 80,000 — 80,000 300,000 380,000 Thereafter 162,500 27,000 189,500 1,000,000 1,189,500 Subtotal 572,670 27,000 599,670 3,360,091 3,959,761 Non-cash (a) 1,020 (66) 954 (24,818) (23,864) Total $ 573,690 $ 26,934 $ 600,624 $ 3,335,273 $ 3,935,897 (a) Includes the unamortized balance of fair market value adjustments, premiums/discounts and deferred financing costs . The Company amortized $1.1 million and $ 1.1 million, respectively, during the three months ended September 30, 2019 and 2018, and $3.1 million and $3.2 million, respectively, during the nine months ended September 30, 2019 and 2018, of deferred financing costs into Interest expense. |
United Dominion Realty L.P. | |
Entity information | |
Schedule of debt instruments | Principal Outstanding As of September 30, 2019 Weighted Weighted Average September 30, December 31, Average Years to Communities 2019 2018 Interest Rate Maturity Encumbered Fixed Rate Debt Mortgage notes payable $ 72,500 $ — 3.10 % 10.3 1 Deferred financing costs (370) — Total fixed rate secured debt, net 72,130 — 3.10 % 10.3 1 Secured Debt Tax-exempt secured note payable $ 27,000 $ 27,000 2.07 % 12.5 1 Deferred financing costs (66) (71) Total Secured Debt, Net $ 99,064 $ 26,929 2.85 % 10.9 2 |
RELATED PARTY TRANSACTIONS (U_2
RELATED PARTY TRANSACTIONS (UNITED DOMINION REALTY, L.P.) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
United Dominion Realty L.P. | |
Related Party Transaction [Line Items] | |
Schedule of Notes payable due to General Partner | The following table summarizes the Operating Partnership’s Notes payable due to the General Partner as of September 30, 2019 and December 31, 2018 ( dollars in thousands Interest rate at Balance Outstanding September 30, September 30, December 31, 2019 2019 2018 Note due August 2021 5.34 % $ 5,500 $ 5,500 Note due December 2023 5.18 % 83,196 83,196 Note due April 2026 4.12 % 184,638 184,638 Note due November 2028 4.69 % 133,205 133,205 Note due December 2028 (a) 3.63 % 217,428 293,576 Total notes payable due to the General Partner $ 623,967 $ 700,115 (a) In December 2018, the Operating Partnership converted the remaining outstanding portion of the Advances (to)/from the General Partner capital balance in connection with entering into an unsecured revolving note payable with the General Partner. There is no limit on the total commitments under this note. Interest is incurred on the unpaid principal balance at a variable interest rate equivalent to the General Partner’s weighted average interest rate on borrowings, or 3.63% as of September 30, 2019. The note matures on December 1, 2028. To the extent there is an outstanding principal balance on the revolving note payable, the General Partner, at its discretion, can demand payment at any time prior to the stated maturity date of the note, |
FAIR VALUE OF DERIVATIVES AND_5
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS (UNITED DOMINION REALTY, L.P.) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
Schedule of estimated fair values | The estimated fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis as of September 30, 2019 and December 31, 2018, are summarized as follows (dollars in thousands) Fair Value at September 30, 2019, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable September 30, September 30, Liabilities Inputs Inputs 2019 2019 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 37,899 $ 42,613 $ — $ — $ 42,613 Derivatives - Interest rate contracts (b) 730 730 — 730 — Total assets $ 38,629 $ 43,343 $ — $ 730 $ 42,613 Derivatives - Interest rate contracts (b) $ 469 $ 469 $ — $ 469 $ — Secured debt instruments - fixed rate: (c) Mortgage notes payable 575,965 569,318 — — 569,318 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 27,000 27,000 — — 27,000 Unsecured debt instruments: (c) Working capital credit facility 34,447 34,447 — — 34,447 Commercial paper program 60,000 60,000 — — 60,000 Unsecured notes 3,260,258 3,415,618 — — 3,415,618 Total liabilities $ 3,958,139 $ 4,106,852 $ — $ 469 $ 4,106,383 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 1,072,181 $ 1,072,181 $ — $ 1,072,181 $ — Fair Value at December 31, 2018, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable December 31, December 31, Liabilities Inputs Inputs 2018 2018 (Level 1) (Level 2) (Level 3) Description: Notes receivable (a) $ 42,259 $ 45,026 $ — $ — $ 45,026 Derivatives - Interest rate contracts (b) 4,757 4,757 — 4,757 — Total assets $ 47,016 $ 49,783 $ — $ 4,757 $ 45,026 Derivatives - Interest rate contracts (b) $ 356 $ 356 $ — $ 356 $ — Secured debt instruments - fixed rate: (c) Mortgage notes payable 417,989 416,314 — — 416,314 Fannie Mae credit facility 90,000 90,213 — — 90,213 Secured debt instruments - variable rate: (c) Tax-exempt secured notes payable 94,700 94,700 — — 94,700 Unsecured debt instruments: (c) Working capital credit facility 16 16 — — 16 Commercial paper program 101,115 101,115 — — 101,115 Unsecured notes 2,861,842 2,829,390 — — 2,829,390 Total liabilities $ 3,566,018 $ 3,532,104 $ — $ 356 $ 3,531,748 Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (d) $ 972,740 $ 972,740 $ — $ 972,740 $ — (a) See Note 2, Significant Accounting Policies . (b) See Note 11, Derivatives and Hedging Activity . (c) See Note 7, Secured and Unsecured Debt, Net . (d) See Note 9, Noncontrolling Interests. |
United Dominion Realty L.P. | |
Entity information | |
Schedule of estimated fair values | The estimated fair values of the Operating Partnership’s financial instruments either recorded or disclosed on a recurring basis as of September 30, 2019 and December 31, 2018 are summarized as follows (dollars in thousands) Fair Value at September 30, 2019, Using Total Quoted Carrying Prices in Amount in Active Statement of Markets Significant Financial Fair Value for Identical Other Significant Position at Estimate at Assets or Observable Unobservable September 30, September 30, Liabilities Inputs Inputs 2019 2019 (Level 1) (Level 2) (Level 3) Description: Secured debt instruments - fixed rate: (a) Mortgage notes payable $ 72,500 $ 68,669 $ — $ — $ 68,669 Secured debt instruments - variable rate: (a) Tax-exempt secured notes payable 27,000 27,000 — — 27,000 Total liabilities $ 99,500 $ 95,669 $ — $ — $ 95,669 Fair Value at December 31, 2018, Using Quoted Total Prices in Carrying Active Amount in Markets Statement of for Identical Significant Financial Fair Value Assets Other Significant Position at Estimate at or Observable Unobservable December 31, December 31, Liabilities Inputs Inputs 2018 2018 (Level 1) (Level 2) (Level 3) Description: Secured debt instruments - variable rate: (a) Tax-exempt secured notes payable $ 27,000 $ 27,000 $ — $ — $ 27,000 Total liabilities $ 27,000 $ 27,000 $ — $ — $ 27,000 (a) See Note 6, Debt, Net. |
DERIVATIVES AND HEDGING ACTIV_9
DERIVATIVES AND HEDGING ACTIVITY (UNITED DOMINION REALTY, L.P.) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
Schedule of outstanding interest rate derivatives | As of September 30, 2019, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk ( dollars in thousands Number of Product Instruments Notional Interest rate swaps (a) 4 $ 315,000 (a) In addition to the interest rate swaps summarized above, the Company entered into an additional interest rate swap with a notional value of $315.0 million that will become effective in January 2020 upon the maturity of the interest rate swaps summarized above. Additionally, the Company had previously entered into two additional interest rate swaps with a notional value totaling $75.0 million that were subsequently terminated and settled during the nine months ended September 30, 2019 in conjunction with the July 2019 issuance of $300.0 million of senior unsecured medium-term notes as disclosed in Note 7, Secured and Unsecured, Net Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in no gain or loss for both the three and nine months ended September 30, 2019 and 2018. As of September 30, 2019, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships ( dollars in thousands Number of Product Instruments Notional Interest rate caps 1 $ 19,880 |
Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheets | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 ( dollars in thousands Asset Derivatives Liability Derivatives (included in Other assets ) (included in Other liabilities ) Fair Value at: Fair Value at: September 30, December 31, September 30, December 31, 2019 2018 2019 2018 Derivatives designated as hedging instruments: Interest rate products $ 730 $ 4,757 $ 469 $ 356 |
Effect of Company's derivative financial instruments on Consolidated Statements of Operations | The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018 ( dollars in thousands Gain/(Loss) Recognized in Gain/(Loss) Reclassified Interest expense Unrealized holding gain/(loss) from Accumulated OCI into (Amount Excluded from Recognized in OCI Interest expense Effectiveness Testing) Derivatives in Cash Flow Hedging Relationships 2019 2018 2019 2018 2019 2018 Three Months Ended September 30, Interest rate products $ (659) $ 2,320 $ 624 $ 564 $ — $ — Nine Months Ended September 30, Interest rate products $ (7,181) $ 4,312 $ 2,504 $ 1,162 $ — $ — |
Effect of Company's derivatives not designated as hedging instruments on the Consolidated Statements of Operations | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total amount of Interest expense $ 42,523 $ 34,401 $ 110,482 $ 95,942 |
Offsetting of Derivative Assets | The Company has elected not to offset derivative positions on the consolidated financial statements. The tables below present the effect on its financial position had the Company made the election to offset its derivative positions as of September 30, 2019 and December 31, 2018 (dollars in thousands): Gross Net Amounts of Gross Amounts Not Offset Amounts Assets in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Assets Assets Sheets (a) Instruments Received Net Amount September 30, 2019 $ 730 $ — $ 730 $ (371) $ — $ 359 December 31, 2018 $ 4,757 $ — $ 4,757 $ — $ — $ 4,757 (a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
Offsetting of Derivative Liabilities | Gross Net Amounts of Gross Amounts Not Offset Amounts Liabilities in the Consolidated Gross Offset in the Presented in the Balance Sheet Amounts of Consolidated Consolidated Cash Recognized Balance Balance Sheets Financial Collateral Offsetting of Derivative Liabilities Liabilities Sheets (a) Instruments Posted Net Amount September 30, 2019 $ 469 $ — $ 469 $ (371) $ — $ 98 December 31, 2018 $ 356 $ — $ 356 $ — $ — $ 356 (a) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Consolidated Balance Sheets” located in this footnote. |
United Dominion Realty L.P. | |
Entity information | |
Schedule of outstanding interest rate derivatives | As of September 30, 2019, we had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships ( dollars in thousands Number of Product Instruments Notional Interest rate caps 1 $ 19,880 |
CAPITAL STRUCTURE (UNITED DOM_2
CAPITAL STRUCTURE (UNITED DOMINION REALTY, L.P.) Capital Structure (UNITED DOMINION REALTY, L.P.) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
United Dominion Realty L.P. | |
Entity information | |
Schedule of Limited Partners' Capital Account by Class [Table Text Block] | The following table shows OP Units outstanding and OP Unit activity as of and for the nine months ended September 30, 2019: UDR, Inc. Class A Class A Limited Limited Limited Limited General Partners Partners Partner Partner Partner Total Ending balance at December 31, 2018 1,751,671 7,636,173 174,016,155 121,661 110,883 183,636,543 Vesting of LTIP Units — 426,999 — — — 426,999 OP redemptions for UDR stock — (1,961,373) 1,961,373 — — — Ending balance at September 30, 2019 1,751,671 6,101,799 175,977,528 121,661 110,883 184,063,542 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (UNITED DOMINION REALTY, L.P.) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Loss Contingencies [Line Items] | |
Summary of real estate commitments | The following summarizes the Company’s real estate commitments at September 30, 2019 ( dollars in thousands Number UDR's UDR's Remaining Properties Investment (a) Commitment Wholly-owned — under development 1 $ 21,845 $ 75,655 Wholly-owned — redevelopment 2 11,582 23,918 Joint ventures: Unconsolidated joint ventures - development 1 14,402 21,496 (b) Preferred equity investments 2 53,781 (c) 27,390 (d) Other investments - 12,926 9,000 (e) Total $ 114,536 $ 157,459 (a) Represents UDR’s investment as of September 30, 2019. (b) Represents UDR’s proportionate share of expected remaining costs to complete the development. (c) Represents UDR’s investment in 1300 Fairmount and Modera Lake Merritt for the properties under development as of September 30, 2019. (d) Represents UDR’s remaining commitment for 1300 Fairmount and Modera Lake Merritt. (e) Represents UDR’s remaining commitment for other investment ventures. |
United Dominion Realty L.P. | |
Loss Contingencies [Line Items] | |
Summary of real estate commitments | The following summarizes the Operating Partnership’s real estate commitments at September 30, 2019 ( dollars in thousands Number Operating Partnership's Properties Investment Remaining Commitment Real estate communities - redevelopment 1 $ 6,254 $ 18,746 |
REPORTABLE SEGMENTS (UNITED D_2
REPORTABLE SEGMENTS (UNITED DOMINION REALTY, L.P.) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Entity information | |
Summary of rental income and NOI for the Operating Partnerships reportable segments and reconciliation of NOI to Net income/(loss) | The following table details rental income and NOI for UDR’s reportable segments for the three and nine months ended September 30, 2019 and 2018, and reconciles NOI to Net income/(loss) attributable to UDR, Inc. (dollars in thousands) Three Months Ended Nine Months Ended September 30, (a) September 30, (b) 2019 2018 2019 2018 Reportable apartment home segment lease revenue Same-Store Communities West Region $ 99,316 $ 95,447 $ 293,294 $ 281,722 Mid-Atlantic Region 52,826 51,291 157,179 152,867 Southeast Region 28,540 27,773 84,551 81,554 Northeast Region 30,196 29,491 89,650 87,776 Southwest Region 15,451 15,060 40,705 39,586 Non-Mature Communities/Other 40,975 24,237 106,499 66,906 Total segment and consolidated rental income $ 267,304 $ 243,299 $ 771,878 $ 710,411 Reportable apartment home segment other revenue Same-Store Communities West Region $ 7,869 $ 7,168 $ 23,488 $ 21,567 Mid-Atlantic Region 4,376 4,032 12,958 11,944 Southeast Region 3,438 3,211 10,423 9,918 Northeast Region 1,321 1,226 3,753 3,422 Southwest Region 1,527 1,525 4,100 3,986 Non-Mature Communities/Other 3,173 2,795 8,793 9,125 Total segment and consolidated rental income $ 21,704 $ 19,957 $ 63,515 $ 59,962 Total reportable apartment home segment rental income Same-Store Communities West Region $ 107,185 $ 102,615 $ 316,782 $ 303,289 Mid-Atlantic Region 57,202 55,323 170,137 164,811 Southeast Region 31,978 30,984 94,974 91,472 Northeast Region 31,517 30,717 93,403 91,198 Southwest Region 16,978 16,585 44,805 43,572 Non-Mature Communities/Other 44,148 27,032 115,292 76,031 Total segment and consolidated rental income $ 289,008 $ 263,256 $ 835,393 $ 770,373 Reportable apartment home segment NOI Same-Store Communities West Region $ 81,170 $ 77,321 $ 240,442 $ 229,129 Mid-Atlantic Region 39,850 38,220 119,075 114,465 Southeast Region 22,133 21,597 66,301 63,806 Northeast Region 20,560 20,640 63,012 62,710 Southwest Region 10,449 9,899 26,995 25,760 Non-Mature Communities/Other 29,487 17,137 77,242 48,833 Total segment and consolidated NOI 203,649 184,814 593,067 544,703 Reconciling items: Joint venture management and other fees 6,386 2,888 11,982 8,819 Property management (8,309) (7,240) (24,018) (21,185) Other operating expenses (2,751) (3,314) (11,132) (8,148) Real estate depreciation and amortization (127,391) (107,881) (357,793) (322,537) General and administrative (12,197) (11,896) (37,002) (36,028) Casualty-related (charges)/recoveries, net 1,088 (678) 842 (2,364) Other depreciation and amortization (1,619) (1,682) (4,953) (5,057) Gain/(loss) on sale of real estate owned — — 5,282 70,300 Income/(loss) from unconsolidated entities 12,713 (1,382) 19,387 (5,091) Interest expense (42,523) (34,401) (110,482) (95,942) Interest income and other income/(expense), net 1,875 1,188 12,998 5,075 Tax (provision)/benefit, net (1,499) (158) (3,836) (618) Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (2,162) (1,616) (6,871) (10,819) Net (income)/loss attributable to noncontrolling interests (56) (32) (145) (141) Net income/(loss) attributable to UDR, Inc. $ 27,204 $ 18,610 $ 87,326 $ 120,967 (a) Same-Store Community population consisted of 38,177 apartment homes. (b) Same-Store Community population consisted of 37,959 apartment homes. |
Details of assets of the Operating Partnership's reportable segments | The following table details the assets of UDR’s reportable segments as of September 30, 2019 and December 31, 2018 (dollars in thousands) September 30, December 31, 2019 2018 Reportable apartment home segment assets: Same-Store Communities (a): West Region $ 3,797,149 $ 3,763,366 Mid-Atlantic Region 2,338,963 2,317,369 Southeast Region 799,739 779,310 Northeast Region 1,498,500 1,491,994 Southwest Region 595,982 589,188 Non-Mature Communities/Other 2,534,062 1,254,932 Total segment assets 11,564,395 10,196,159 Accumulated depreciation (4,000,608) (3,654,160) Total segment assets — net book value 7,563,787 6,541,999 Reconciling items: Cash and cash equivalents 1,895 185,216 Restricted cash 21,646 23,675 Notes receivable, net 37,899 42,259 Investment in and advances to unconsolidated joint ventures, net 791,180 780,869 Operating lease right-of-use assets 135,889 — Other assets 145,301 137,710 Total consolidated assets $ 8,697,597 $ 7,711,728 (a) Same-Store Community population consisted of 38,177 apartment homes. |
United Dominion Realty L.P. | |
Entity information | |
Summary of rental income and NOI for the Operating Partnerships reportable segments and reconciliation of NOI to Net income/(loss) | The following table details rental income and NOI for the Operating Partnership’s reportable segments for the three and nine months ended September 30, 2019 and 2018, and reconciles NOI to Net income/(loss) attributable to OP unitholders (dollars in thousands) Three Months Ended Nine Months Ended September 30, (a) September 30, (b) 2019 2018 2019 2018 Reportable apartment home segment lease revenue Same-Store Communities West Region $ 62,760 $ 60,569 $ 185,840 $ 178,401 Mid-Atlantic Region 14,900 14,645 44,592 43,814 Southeast Region 12,808 12,604 37,957 36,782 Northeast Region 8,098 7,936 24,036 23,541 Southwest Region 1,901 1,865 — — Non-Mature Communities/Other 7,468 8,694 27,295 30,830 Total segment and consolidated rental income $ 107,935 $ 106,313 $ 319,720 $ 313,368 Reportable apartment home segment other revenue Same-Store Communities West Region $ 2,063 $ 1,750 $ 5,908 $ 5,484 Mid-Atlantic Region 551 441 1,515 1,359 Southeast Region 799 658 2,301 2,099 Northeast Region 187 178 521 496 Southwest Region 87 58 — — Non-Mature Communities/Other 78 141 419 591 Total segment and consolidated rental income $ 3,765 $ 3,226 $ 10,664 $ 10,029 Total reportable apartment home segment rental income Same-Store Communities West Region $ 64,823 $ 62,319 $ 191,748 $ 183,885 Mid-Atlantic Region 15,451 15,086 46,107 45,173 Southeast Region 13,607 13,262 40,258 38,881 Northeast Region 8,285 8,114 24,557 24,037 Southwest Region 1,988 1,923 — — Non-Mature Communities/Other 7,546 8,835 27,714 31,421 Total segment and consolidated rental income $ 111,700 $ 109,539 $ 330,384 $ 323,397 Reportable apartment home segment NOI Same-Store Communities West Region $ 49,528 $ 47,692 $ 146,673 $ 140,603 Mid-Atlantic Region 10,611 10,178 31,691 30,953 Southeast Region 9,371 9,336 27,984 26,979 Northeast Region 5,736 6,001 18,201 18,260 Southwest Region 1,405 1,253 — — Non-Mature Communities/Other 4,181 5,688 17,102 21,177 Total segment and consolidated NOI 80,832 80,148 241,651 237,972 Reconciling items: Property management (3,211) (3,012) (9,498) (8,893) Other operating expenses (2,301) (2,347) (7,123) (6,098) Real estate depreciation and amortization (35,155) (35,043) (104,730) (108,906) General and administrative (4,066) (4,143) (12,878) (12,997) Casualty-related (charges)/recoveries, net 1,088 10 1,169 (906) Gain/(loss) on sale of real estate owned — — — 70,300 Income/(loss) from unconsolidated entities (2,383) (2,378) (6,917) (10,102) Interest expense (7,521) (5,100) (22,247) (15,209) Net (income)/loss attributable to noncontrolling interests (448) (440) (1,252) (1,278) Net income/(loss) attributable to OP unitholders $ 26,835 $ 27,695 $ 78,175 $ 143,883 (a) Same-Store Community population consisted of 15,941 apartment homes. (b) Same-Store Community population consisted of 15,723 apartment homes. |
Details of assets of the Operating Partnership's reportable segments | The following table details the assets of the Operating Partnership’s reportable segments as of September 30, 2019 and December 31, 2018 (dollars in thousands) September 30, December 31, 2019 2018 Reportable apartment home segment assets Same-Store Communities (a): West Region $ 2,003,088 $ 1,981,007 Mid-Atlantic Region 667,755 663,083 Southeast Region 349,767 340,722 Northeast Region 408,244 406,149 Southwest Region 144,028 141,882 Non-Mature Communities/Other 288,872 279,142 Total segment assets 3,861,754 3,811,985 Accumulated depreciation (1,762,168) (1,658,161) Total segment assets - net book value 2,099,586 2,153,824 Reconciling items: Cash and cash equivalents 40 125 Restricted cash 14,637 13,563 Investment in unconsolidated entities 82,269 103,026 Operating lease right-of-use assets 135,766 — Other assets 23,321 34,052 Total consolidated assets $ 2,355,619 $ 2,304,590 (a) Same-Store Community population consisted of 15,941 apartment homes. |
CONSOLIDATION AND BASIS OF PR_2
CONSOLIDATION AND BASIS OF PRESENTATION - GP Units (UNITED DOMINION REALTY, L.P.) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019communityitemshares | Sep. 30, 2018 | Sep. 30, 2019communityitemshares | Sep. 30, 2018 | Dec. 31, 2018shares | |
Basis of presentation | |||||
Number of real estate properties | community | 138 | 138 | |||
Number of apartments owned (in apartments homes) | item | 43,683 | 43,683 | |||
Operating Partnership outstanding units | 184,063,542 | 184,063,542 | |||
Operating Partnership units outstanding related to limited partner | 184,063,542 | 184,063,542 | 183,636,543 | ||
United Dominion Realty L.P. | |||||
Basis of presentation | |||||
Rental revenues percent of General Partner's consolidated rental revenues | 40.00% | 42.00% | |||
General Partners' ownership (as a percent) | 95.70% | 95.70% | |||
Operating Partnership units outstanding related to limited partner | 176,210,072 | 176,210,072 | |||
United Dominion Realty L.P. | |||||
Basis of presentation | |||||
Rental revenues percent of General Partner's consolidated rental revenues | 39.00% | 42.00% | |||
Number of real estate properties | community | 52 | 52 | |||
Number of markets operating within (in markets) | item | 15 | 15 | |||
Number of apartments owned (in apartments homes) | item | 16,434 | 16,434 | |||
Operating Partnership outstanding units | 184,063,542 | 184,063,542 | 183,636,543 | ||
OP units outstanding related to general partner | 110,883 | 110,883 | 110,883 | ||
Operating Partnership units outstanding related to limited partner | 183,952,659 | 183,952,659 | 183,525,660 | ||
UDR, Inc. | |||||
Basis of presentation | |||||
General Partners' ownership (as a percent) | 55.90% | 55.90% | |||
Operating Partnership outstanding units | 18,104,895 | 18,104,895 | |||
Operating Partnership units outstanding related to limited partner | 176,099,189 | 176,099,189 | 174,137,816 | ||
Percentage of units outstanding in Partnership | 95.70% | 95.70% | 94.90% | ||
UDR, Inc. | United Dominion Realty L.P. | |||||
Basis of presentation | |||||
General Partners' ownership (as a percent) | 95.70% | 95.70% | |||
Operating Partnership outstanding units | 174,248,699 | ||||
OP units outstanding related to general partner | 176,210,072 | 176,210,072 | |||
Percentage of units outstanding in Partnership | 94.90% | ||||
Non-affiliated Partners | |||||
Basis of presentation | |||||
Operating Partnership outstanding units | 14,262,485 | 14,262,485 | |||
Operating Partnership units outstanding related to limited partner | 7,853,470 | 7,853,470 | |||
Percentage of units outstanding in Partnership | 4.30% | 4.30% | |||
Non-affiliated Partners | United Dominion Realty L.P. | |||||
Basis of presentation | |||||
Operating Partnership outstanding units | 9,387,844 | ||||
Operating Partnership units outstanding related to limited partner | 7,853,470 | 7,853,470 | |||
Percentage of units outstanding in Partnership | 4.30% | 4.30% | 5.10% | ||
Class A Limited Partner | United Dominion Realty L.P. | |||||
Basis of presentation | |||||
Operating Partnership units outstanding related to limited partner | 1,873,332 | 1,873,332 | 1,873,332 | ||
Class A Limited Partner | UDR, Inc. | |||||
Basis of presentation | |||||
Operating Partnership units outstanding related to limited partner | 121,661 | 121,661 | 121,661 | ||
Limited Partner | |||||
Basis of presentation | |||||
Operating Partnership units outstanding related to limited partner | 6,101,799 | 6,101,799 | 7,636,173 | ||
Limited Partner | UDR, Inc. | |||||
Basis of presentation | |||||
Operating Partnership units outstanding related to limited partner | 175,977,528 | 175,977,528 | 174,016,155 | ||
General Partner | UDR, Inc. | |||||
Basis of presentation | |||||
Operating Partnership units outstanding related to limited partner | 110,883 | 110,883 | 110,883 | ||
Non-affiliated Partners | United Dominion Realty L.P. | |||||
Basis of presentation | |||||
Operating Partnership units outstanding related to limited partner | 7,853,470 | 7,853,470 | 9,387,844 | ||
Percentage of units outstanding in Partnership | 4.30% | 4.30% | 5.10% | ||
Non-affiliated Partners | Class A Limited Partner | |||||
Basis of presentation | |||||
Operating Partnership units outstanding related to limited partner | 1,751,671 | 1,751,671 | 1,751,671 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (UNITED DOMINION REALTY, L.P.) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Accounting policies | |||
Lease classification per practical expedient | true | ||
Operating lease right-of-use assets | $ 135,889 | ||
Operating lease liabilities | 130,135 | ||
Increase in operating lease right-to-use assets | 42,143 | ||
Increase in operating lease liabilities | 42,100 | ||
United Dominion Realty L.P. | |||
Accounting policies | |||
Operating lease right-of-use assets | 135,766 | ||
Operating lease liabilities | 130,013 | ||
Increase in operating lease right-to-use assets | 42,143 | ||
Increase in operating lease liabilities | 42,100 | ||
Unrecognized Tax Benefits | $ 0 | ||
ASU 2016-02 | Adjustment | |||
Accounting policies | |||
Operating lease right-of-use assets | $ 94,300 | ||
Operating lease liabilities | 88,300 | ||
Prepaid rent and intangible assets | $ 6,000 | ||
ASU 2016-02 | Adjustment | United Dominion Realty L.P. | |||
Accounting policies | |||
Operating lease right-of-use assets | 94,200 | ||
Operating lease liabilities | $ 88,200 | ||
Prepaid rent and intangible assets | $ 6,000 |
REAL ESTATE OWNED (UNITED DOM_3
REAL ESTATE OWNED (UNITED DOMINION REALTY, L.P.) - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Real estate owned | ||
Land | $ 2,020,617 | $ 1,849,799 |
Depreciable property - held and used: | ||
Land improvements | 220,654 | 213,224 |
Building, improvements, and furniture, fixtures and equipment | 9,260,709 | 8,133,136 |
Real estate owned | 11,564,395 | 10,196,159 |
Accumulated depreciation | (4,000,608) | (3,654,160) |
Total real estate owned, net of accumulated depreciation | 7,563,787 | 6,541,999 |
United Dominion Realty L.P. | ||
Real estate owned | ||
Land | 711,256 | 711,256 |
Depreciable property - held and used: | ||
Land improvements | 95,096 | 92,000 |
Building, improvements, and furniture, fixtures and equipment | 3,055,402 | 3,008,729 |
Real estate owned | 3,861,754 | 3,811,985 |
Accumulated depreciation | (1,762,168) | (1,658,161) |
Total real estate owned, net of accumulated depreciation | $ 2,099,586 | $ 2,153,824 |
REAL ESTATE OWNED (UNITED DOM_4
REAL ESTATE OWNED (UNITED DOMINION REALTY, L.P.) - Acquisitions and Dispositions (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)communityitemstate | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)communityitemstate | Sep. 30, 2018USD ($) | |
Real Estate Owned Disclosure | ||||
Number of communities owned (in communities) | community | 138 | 138 | ||
Number of states in which there are owned and consolidated communities | state | 13 | 13 | ||
Development costs excluding direct costs and capitalized interest | $ 1.9 | $ 1.6 | $ 6.9 | $ 6.6 |
Number of apartments owned (in apartments homes) | item | 43,683 | 43,683 | ||
Interest capitalized during period | $ 1.4 | 1.6 | $ 3.8 | 9.8 |
United Dominion Realty L.P. | ||||
Real Estate Owned Disclosure | ||||
Number of communities owned (in communities) | community | 52 | 52 | ||
Number of states in which there are owned and consolidated communities | state | 9 | 9 | ||
Development costs excluding direct costs and capitalized interest | $ 0.3 | 0 | $ 0.6 | |
Number of apartments owned (in apartments homes) | item | 16,434 | 16,434 | ||
Interest capitalized during period | $ 0.1 | |||
United Dominion Realty L.P. | Maximum | ||||
Real Estate Owned Disclosure | ||||
Development costs excluding direct costs and capitalized interest | 0.1 | |||
Interest capitalized during period | $ 0.1 | $ 0.1 | $ 0.1 |
UNCONSOLIDATED ENTITIES (UNIT_3
UNCONSOLIDATED ENTITIES (UNITED DOMINION REALTY, L.P.) - Summary Financial Information (Details) - UDR Lighthouse DownREIT L.P. - United Dominion Realty L.P. - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Total real estate, net | $ 1,119,828 | $ 1,119,828 | $ 1,167,720 | ||
Cash and cash equivalents | 22 | 22 | 39 | ||
Note receivable from the General Partner | 221,789 | 221,789 | 221,022 | ||
Other assets | 5,259 | 5,259 | 5,561 | ||
Total assets | 1,346,898 | 1,346,898 | 1,394,342 | ||
Secured debt, net | 428,457 | 428,457 | 431,735 | ||
Other liabilities | 25,880 | 25,880 | 26,597 | ||
Liabilities | 454,337 | 454,337 | 458,332 | ||
Total capital | 892,561 | 892,561 | $ 936,010 | ||
Rental income | 32,434 | $ 35,069 | 96,065 | $ 103,842 | |
Property operating expenses | (13,087) | (14,303) | (38,934) | (43,180) | |
Real estate depreciation and amortization | (20,620) | (22,097) | (61,424) | (65,704) | |
Operating income/(loss) | (1,273) | (1,331) | (4,293) | (5,042) | |
Interest expense | (4,162) | (3,343) | (11,979) | (10,553) | |
Interest income on note receivable from the General Partner | 2,054 | 1,196 | 6,060 | 3,587 | |
Net income /(loss) | $ (3,381) | $ (3,478) | $ (10,212) | $ (12,008) |
UNCONSOLIDATED ENTITIES (UNIT_4
UNCONSOLIDATED ENTITIES (UNITED DOMINION REALTY, L.P.) - Additional Information (Details) $ in Thousands | Sep. 30, 2019USD ($)communityitem | Dec. 31, 2018USD ($) |
Unconsolidated entities | ||
Number of real estate properties | community | 138 | |
Number of apartment homes owned and consolidated | item | 43,683 | |
Equity Method Investments | $ | $ 791,180 | $ 780,869 |
United Dominion Realty L.P. | ||
Unconsolidated entities | ||
Number of real estate properties | community | 52 | |
Number of apartment homes owned and consolidated | item | 16,434 | |
Equity Method Investments | $ | $ 82,269 | 103,026 |
United Dominion Realty L.P. | UDR Lighthouse DownREIT L.P. | ||
Unconsolidated entities | ||
Number of real estate properties | community | 12 | |
Number of apartment homes owned and consolidated | item | 5,657 | |
Equity Method Investments | $ | $ 82,300 | $ 103,000 |
LEASES (UNITED DOMINION REALT_3
LEASES (UNITED DOMINION REALTY, L.P.) - Lessee Future Minimum Payments - (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)community | |
Lessee operating leases | |
Number of communities subject to ground leases | community | 6 |
Operating leases existence of option to extend | true |
Lease classification per practical expedient | true |
Operating lease right-of-use assets | $ 135,889 |
Increase in operating lease right-to-use assets | 42,143 |
Increase in operating lease liabilities | $ 42,100 |
Weighted average remaining lease term | 55 years 2 months 12 days |
Weighted average discount rate | 5.10% |
Future minimum lease payments | |
2019 | $ 1,972 |
2020 | 7,889 |
2021 | 7,845 |
2022 | 7,813 |
2023 | 7,813 |
Thereafter | 370,467 |
Total future minimum lease payments (undiscounted) | 403,799 |
Difference between future undiscounted cash flows and discounted cash flows | (273,664) |
Operating lease liabilities | 130,135 |
Ground Leases | |
Future minimum lease payments | |
2019 | 1,953 |
2020 | 7,813 |
2021 | 7,813 |
2022 | 7,813 |
2023 | 7,813 |
Thereafter | 370,467 |
Total future minimum lease payments (undiscounted) | 403,672 |
Difference between future undiscounted cash flows and discounted cash flows | (273,659) |
Operating lease liabilities | $ 130,013 |
United Dominion Realty L.P. | |
Lessee operating leases | |
Number of communities subject to ground leases | community | 6 |
Operating leases existence of option to extend | true |
Operating lease right-of-use assets | $ 135,766 |
Increase in operating lease right-to-use assets | 42,143 |
Increase in operating lease liabilities | $ 42,100 |
Weighted average remaining lease term | 55 years 3 months 18 days |
Weighted average discount rate | 5.10% |
Future minimum lease payments | |
Operating lease liabilities | $ 130,013 |
United Dominion Realty L.P. | Ground Leases | |
Future minimum lease payments | |
2019 | 1,953 |
2020 | 7,813 |
2021 | 7,813 |
2022 | 7,813 |
2023 | 7,813 |
Thereafter | 370,467 |
Total future minimum lease payments (undiscounted) | 403,672 |
Difference between future undiscounted cash flows and discounted cash flows | (273,659) |
Operating lease liabilities | $ 130,013 |
LEASES (UNITED DOMINION REALT_4
LEASES (UNITED DOMINION REALTY, L.P.) - Lessee Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lessee operating leases | ||
Contractual lease expense | $ 100 | $ 300 |
Variable lease expense | 100 | 300 |
Total lease expense | 2,160 | 6,758 |
Operating lease right-of-use asset amortization | 600 | |
Operating lease liabilities amortization | 300 | |
Ground Leases | ||
Lessee operating leases | ||
Contractual lease expense | 1,954 | 6,232 |
Variable lease expense | 187 | 469 |
United Dominion Realty L.P. | ||
Lessee operating leases | ||
Contractual lease expense | 100 | 300 |
Operating lease right-of-use asset amortization | 600 | |
Operating lease liabilities amortization | 300 | |
United Dominion Realty L.P. | Ground Leases | ||
Lessee operating leases | ||
Contractual lease expense | 1,954 | 6,232 |
Variable lease expense | 187 | 469 |
Total lease expense | $ 2,141 | $ 6,701 |
LEASES (UNITED DOMINION REALT_5
LEASES (UNITED DOMINION REALTY, L.P.) - Lessor (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2019 |
Lessor leases | |||
Lease classification per practical expedient | true | ||
Future minimum lease payments | |||
Variable lease expense | $ 100 | $ 300 | |
Apartment Homes | |||
Lessor leases | |||
Percentage of lease revenue | 98.10% | ||
Apartment Homes | Maximum | |||
Lessor leases | |||
Lease terms | 12 months | 12 months | |
Retail and Commercial Spaces | |||
Lessor leases | |||
Percentage of lease revenue | 1.90% | ||
Future minimum lease payments | |||
2019 | $ 4,958 | $ 4,958 | |
2020 | 20,565 | 20,565 | |
2021 | 19,788 | 19,788 | |
2022 | 18,094 | 18,094 | |
2023 | 16,843 | 16,843 | |
Thereafter | 92,719 | 92,719 | |
Total future minimum payments | $ 172,967 | $ 172,967 | |
Retail and Commercial Spaces | Minimum | |||
Lessor leases | |||
Lease terms | 5 years | 5 years | |
Retail and Commercial Spaces | Maximum | |||
Lessor leases | |||
Lease terms | 15 years | 15 years | |
United Dominion Realty L.P. | Minimum | |||
Lessor leases | |||
Lease terms | 5 years | ||
United Dominion Realty L.P. | Maximum | |||
Lessor leases | |||
Lease terms | 15 years | ||
United Dominion Realty L.P. | Apartment Homes | |||
Lessor leases | |||
Percentage of lease revenue | 98.40% | ||
United Dominion Realty L.P. | Apartment Homes | Maximum | |||
Lessor leases | |||
Lease terms | 12 months | 12 months | |
United Dominion Realty L.P. | Retail and Commercial Spaces | |||
Lessor leases | |||
Percentage of lease revenue | 1.60% | ||
Lease classification per practical expedient | true | ||
Future minimum lease payments | |||
2019 | $ 1,810 | $ 1,810 | |
2020 | 7,778 | 7,778 | |
2021 | 7,442 | 7,442 | |
2022 | 6,841 | 6,841 | |
2023 | 6,517 | 6,517 | |
Thereafter | 19,874 | 19,874 | |
Total future minimum payments | 50,262 | 50,262 | |
Variable lease expense | $ 100 | ||
United Dominion Realty L.P. | Retail and Commercial Spaces | Maximum | |||
Future minimum lease payments | |||
Variable lease expense | $ 100 |
DEBT, NET (UNITED DOMINION RE_3
DEBT, NET (UNITED DOMINION REALTY, L.P.) - Summary (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Oct. 30, 2019 | Sep. 30, 2019USD ($)community | Dec. 31, 2018USD ($) | |
Fixed and variable rate debt | |||
Weighted Average Interest Rate | 4.63% | 3.63% | |
Weighted Average | |||
Fixed and variable rate debt | |||
Years to maturity | 6 years 10 months 24 days | ||
Fixed Rate Debt | Mortgages Notes Payable | |||
Fixed and variable rate debt | |||
Principal outstanding | $ 575,965 | $ 417,989 | |
Weighted Average Interest Rate | 3.55% | ||
Communities Encumbered (in communities) | community | 9 | ||
Fixed Rate Debt | Mortgages Notes Payable | Weighted Average | |||
Fixed and variable rate debt | |||
Years to maturity | 6 years 7 months 6 days | ||
Fixed Rate Debt | Fannie Mae credit facilities | |||
Fixed and variable rate debt | |||
Principal outstanding | 90,000 | ||
Variable Rate Debt | Tax-exempt secured notes payable | |||
Fixed and variable rate debt | |||
Principal outstanding | $ 27,000 | 94,700 | |
Weighted Average Interest Rate | 2.07% | ||
Communities Encumbered (in communities) | community | 1 | ||
Variable Rate Debt | Tax-exempt secured notes payable | Weighted Average | |||
Fixed and variable rate debt | |||
Years to maturity | 12 years 6 months | ||
United Dominion Realty L.P. | |||
Fixed and variable rate debt | |||
Principal outstanding | $ 99,064 | 26,929 | |
Weighted Average Interest Rate | 2.85% | ||
Communities Encumbered (in communities) | community | 2 | ||
United Dominion Realty L.P. | Weighted Average | |||
Fixed and variable rate debt | |||
Years to maturity | 10 years 10 months 24 days | ||
United Dominion Realty L.P. | Mortgages Notes Payable | |||
Fixed and variable rate debt | |||
Principal outstanding | $ 72,500 | ||
Interest rate | 3.10% | ||
United Dominion Realty L.P. | Fixed Rate Debt | |||
Fixed and variable rate debt | |||
Principal outstanding | $ 72,130 | ||
Weighted Average Interest Rate | 3.10% | ||
Communities Encumbered (in communities) | community | 1 | ||
United Dominion Realty L.P. | Fixed Rate Debt | Weighted Average | |||
Fixed and variable rate debt | |||
Years to maturity | 10 years 3 months 18 days | ||
United Dominion Realty L.P. | Fixed Rate Debt | Mortgages Notes Payable | |||
Fixed and variable rate debt | |||
Principal outstanding | $ 72,500 | ||
Weighted Average Interest Rate | 3.10% | ||
Communities Encumbered (in communities) | community | 1 | ||
Deferred finance costs, net | $ (370) | ||
United Dominion Realty L.P. | Fixed Rate Debt | Mortgages Notes Payable | Weighted Average | |||
Fixed and variable rate debt | |||
Years to maturity | 10 years 3 months 18 days | ||
United Dominion Realty L.P. | Variable Rate Debt | |||
Fixed and variable rate debt | |||
Deferred finance costs, net | $ (66) | (71) | |
United Dominion Realty L.P. | Variable Rate Debt | Tax-exempt secured notes payable | |||
Fixed and variable rate debt | |||
Principal outstanding | $ 27,000 | $ 27,000 | |
Weighted Average Interest Rate | 2.07% | ||
Communities Encumbered (in communities) | community | 1 | ||
United Dominion Realty L.P. | Variable Rate Debt | Tax-exempt secured notes payable | Weighted Average | |||
Fixed and variable rate debt | |||
Years to maturity | 12 years 6 months |
DEBT, NET (UNITED DOMINION RE_4
DEBT, NET (UNITED DOMINION REALTY, L.P.) - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | |||||
Oct. 30, 2019 | Aug. 31, 2019 | Sep. 30, 2019 | Jul. 31, 2019 | Jul. 02, 2019 | Dec. 31, 2018 | |
Fixed and variable rate debt | ||||||
Long-term commercial paper | $ 500,000 | |||||
Borrowings outstanding | 2,800 | $ 3,300 | ||||
Commercial Paper | ||||||
Fixed and variable rate debt | ||||||
Commercial paper program | $ 60,000 | $ 101,115 | ||||
Interest rate at the end of the period | 2.30% | 2.90% | ||||
3.70% Term Notes Due October 2020 | ||||||
Fixed and variable rate debt | ||||||
Interest rate | 3.70% | |||||
Make-whole amount | $ 5,400 | |||||
4.63% Medium-Term Notes due January 2022 | ||||||
Fixed and variable rate debt | ||||||
Medium-term notes | $ 400,000 | |||||
Interest rate | 4.63% | |||||
Make-whole amount | $ 21,500 | |||||
3.20% Medium-Term Notes due January 2030 | ||||||
Fixed and variable rate debt | ||||||
Guarantor borrowing capacity | $ 300,000 | |||||
Medium-term notes | $ 100,000 | $ 300,000 | $ 300,000 | |||
Interest rate | 3.20% | 3.20% | 3.20% | |||
Borrowings outstanding | $ 400,000 | |||||
Medium-Term Notes Due August 2031 | ||||||
Fixed and variable rate debt | ||||||
Guarantor borrowing capacity | 400,000 | |||||
3.10% senior unsecured notes due 2034 | ||||||
Fixed and variable rate debt | ||||||
Medium-term notes | $ 300,000 | |||||
Interest rate | 3.10% | |||||
United Dominion Realty L.P. | Financial Guarantee | ||||||
Fixed and variable rate debt | ||||||
Guarantor borrowing capacity | 1,100,000 | |||||
United Dominion Realty L.P. | Unsecured Commercial Bank Credit Facility | ||||||
Fixed and variable rate debt | ||||||
Long-term commercial paper | $ 500,000 | |||||
United Dominion Realty L.P. | Mortgages Notes Payable | ||||||
Fixed and variable rate debt | ||||||
Interest rate | 3.10% | |||||
United Dominion Realty L.P. | Mortgages Notes Payable | Variable Rate Debt | Operating Partnership | ||||||
Fixed and variable rate debt | ||||||
Interest rate at the end of the period | 2.07% | |||||
United Dominion Realty L.P. | Unsecured Commercial Paper | ||||||
Fixed and variable rate debt | ||||||
Borrowings outstanding | $ 60,000 | $ 101,100 | ||||
United Dominion Realty L.P. | 3.70% Term Notes Due October 2020 | ||||||
Fixed and variable rate debt | ||||||
Guarantor borrowing capacity | 300,000 | |||||
United Dominion Realty L.P. | 4.63% Medium-Term Notes due January 2022 | ||||||
Fixed and variable rate debt | ||||||
Guarantor borrowing capacity | 400,000 | |||||
United Dominion Realty L.P. | Term Loan due September 2023 | ||||||
Fixed and variable rate debt | ||||||
Guarantor borrowing capacity | 350,000 | |||||
United Dominion Realty L.P. | 3.75% Medium-Term Notes Due July 2024 | ||||||
Fixed and variable rate debt | ||||||
Guarantor borrowing capacity | 300,000 | |||||
United Dominion Realty L.P. | 4.00% Medium-Term Note due October 2025 | ||||||
Fixed and variable rate debt | ||||||
Guarantor borrowing capacity | 300,000 | |||||
United Dominion Realty L.P. | 2.95% Medium-Term Note due September 2026 | ||||||
Fixed and variable rate debt | ||||||
Guarantor borrowing capacity | 300,000 | |||||
United Dominion Realty L.P. | 3.50 Medium-Term Note due July 2027 | ||||||
Fixed and variable rate debt | ||||||
Guarantor borrowing capacity | 300,000 | |||||
United Dominion Realty L.P. | Medium-Term note due January 2029 | ||||||
Fixed and variable rate debt | ||||||
Guarantor borrowing capacity | $ 300,000 |
RELATED PARTY TRANSACTIONS (U_3
RELATED PARTY TRANSACTIONS (UNITED DOMINION REALTY, L.P.) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related party transactions | |||||
Related party management fees | $ 4,600 | $ 3,800 | $ 12,700 | $ 11,400 | |
United Dominion Realty L.P. | |||||
Related party transactions | |||||
Debt Instrument, Interest Rate Period End | 3.63% | 3.63% | |||
Notes payable due to the General Partner | $ 623,967 | $ 623,967 | $ 700,115 | ||
Interest expense, related party | 6,983 | 3,053 | 21,358 | 9,159 | |
United Dominion Realty L.P. | UDR, Inc. | |||||
Related party transactions | |||||
General and administrative expenses allocated to the Operating Partnership by UDR | $ 2,700 | $ 3,300 | $ 9,700 | $ 10,500 | |
Note due August 2021 | United Dominion Realty L.P. | |||||
Related party transactions | |||||
Debt Instrument, Interest Rate Period End | 5.34% | 5.34% | |||
Notes payable due to the General Partner | $ 5,500 | $ 5,500 | 5,500 | ||
Note due December 2023 | United Dominion Realty L.P. | |||||
Related party transactions | |||||
Debt Instrument, Interest Rate Period End | 5.18% | 5.18% | |||
Notes payable due to the General Partner | $ 83,196 | $ 83,196 | 83,196 | ||
Note due April 2026 | United Dominion Realty L.P. | |||||
Related party transactions | |||||
Debt Instrument, Interest Rate Period End | 4.12% | 4.12% | |||
Notes payable due to the General Partner | $ 184,638 | $ 184,638 | 184,638 | ||
Note due November 2028 | United Dominion Realty L.P. | |||||
Related party transactions | |||||
Debt Instrument, Interest Rate Period End | 4.69% | 4.69% | |||
Notes payable due to the General Partner | $ 133,205 | $ 133,205 | 133,205 | ||
Note due December 2028 | United Dominion Realty L.P. | |||||
Related party transactions | |||||
Debt Instrument, Interest Rate Period End | 3.63% | 3.63% | |||
Notes payable due to the General Partner | $ 217,428 | $ 217,428 | $ 293,576 |
FAIR VALUE OF DERIVATIVES AND_6
FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS (UNITED DOMINION REALTY, L.P.) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt instruments - fair value | ||
Transfer between the levels | $ 0 | |
Fair Value, Measurements, Recurring | Carrying Amount | ||
Debt instruments - fair value | ||
Total liabilities | 3,958,139 | $ 3,566,018 |
Fair Value, Measurements, Recurring | Fair Value | ||
Debt instruments - fair value | ||
Total liabilities | 4,106,852 | 3,532,104 |
Level 2 | Fair Value, Measurements, Recurring | Fair Value | ||
Debt instruments - fair value | ||
Total liabilities | 469 | 356 |
Level 3 | Fair Value, Measurements, Recurring | Fair Value | ||
Debt instruments - fair value | ||
Total liabilities | 4,106,383 | 3,531,748 |
United Dominion Realty L.P. | Fair Value, Measurements, Recurring | Carrying Amount | ||
Debt instruments - fair value | ||
Total liabilities | 99,500 | 27,000 |
United Dominion Realty L.P. | Fair Value, Measurements, Recurring | Fair Value | ||
Debt instruments - fair value | ||
Total liabilities | 95,669 | 27,000 |
United Dominion Realty L.P. | Level 3 | Fair Value, Measurements, Recurring | Fair Value | ||
Debt instruments - fair value | ||
Total liabilities | 95,669 | 27,000 |
Fixed Rate Debt | United Dominion Realty L.P. | Mortgages Notes Payable | Fair Value, Measurements, Recurring | Carrying Amount | ||
Debt instruments - fair value | ||
Fair value | 72,500 | |
Fixed Rate Debt | United Dominion Realty L.P. | Mortgages Notes Payable | Fair Value, Measurements, Recurring | Fair Value | ||
Debt instruments - fair value | ||
Fair value | 68,669 | |
Fixed Rate Debt | United Dominion Realty L.P. | Level 3 | Mortgages Notes Payable | Fair Value, Measurements, Recurring | Fair Value | ||
Debt instruments - fair value | ||
Fair value | 68,669 | |
Variable Rate Debt | United Dominion Realty L.P. | Tax-exempt secured notes payable | Fair Value, Measurements, Recurring | Carrying Amount | ||
Debt instruments - fair value | ||
Fair value | 27,000 | 27,000 |
Variable Rate Debt | United Dominion Realty L.P. | Tax-exempt secured notes payable | Fair Value, Measurements, Recurring | Fair Value | ||
Debt instruments - fair value | ||
Fair value | 27,000 | 27,000 |
Variable Rate Debt | United Dominion Realty L.P. | Level 3 | Tax-exempt secured notes payable | Fair Value, Measurements, Recurring | Fair Value | ||
Debt instruments - fair value | ||
Fair value | $ 27,000 | $ 27,000 |
DERIVATIVES AND HEDGING ACTI_10
DERIVATIVES AND HEDGING ACTIVITY (UNITED DOMINION REALTY, L.P.) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)instrument | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)instrument | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Derivatives | |||||
Estimated additional accumulated other comprehensive Income/(Loss) transferred to interest expense | $ 9,800 | $ 9,800 | |||
Payment required to pay for contract termination | $ 500 | $ 500 | |||
Interest rate caps | Not Designated as Hedging Instrument | |||||
Outstanding interest rate derivatives not designated as hedging instrument | |||||
Number instruments | instrument | 1 | 1 | |||
Notional | $ 19,880 | $ 19,880 | |||
United Dominion Realty L.P. | |||||
Derivatives | |||||
Derivatives | 0 | 0 | $ 0 | ||
Estimated additional accumulated other comprehensive Income/(Loss) transferred to interest expense | 0 | 0 | |||
United Dominion Realty L.P. | Interest rate contracts | |||||
Derivatives | |||||
Gain/(Loss) recognized in Interest Income and Other Income/(Expense), net | $ 0 | $ 0 | $ 0 | $ 0 | |
United Dominion Realty L.P. | Interest rate caps | Not Designated as Hedging Instrument | |||||
Outstanding interest rate derivatives not designated as hedging instrument | |||||
Number instruments | instrument | 1 | 1 | |||
Notional | $ 19,880 | $ 19,880 | |||
Other income/(expense) | Interest rate contracts | |||||
Derivatives | |||||
Gain/(Loss) recognized in Interest Income and Other Income/(Expense), net | 0 | 0 | 0 | 0 | |
Other income/(expense) | United Dominion Realty L.P. | Interest rate contracts | |||||
Derivatives | |||||
Gain/(Loss) recognized in Interest Income and Other Income/(Expense), net | $ 0 | $ 0 | 0 | $ 0 | |
Interest expense | United Dominion Realty L.P. | Cash Flow Hedging | |||||
Derivatives | |||||
Gain/(Loss) recognized in Interest Income and Other Income/(Expense), net | $ 0 |
CAPITAL STRUCTURE (UNITED DOM_3
CAPITAL STRUCTURE (UNITED DOMINION REALTY, L.P.) - Units Rollforward (Details) | 9 Months Ended |
Sep. 30, 2019shares | |
Capital structure | |
Balance | 183,636,543 |
Vesting of LTIP Units | 426,999 |
Balance | 184,063,542 |
UDR, Inc. | |
Capital structure | |
Balance | 174,137,816 |
Balance | 176,099,189 |
Non-affiliated Partners | |
Capital structure | |
Balance | 7,853,470 |
Class A Limited Partner | UDR, Inc. | |
Capital structure | |
Balance | 121,661 |
Balance | 121,661 |
Non-affiliated Partners | Class A Limited Partner | |
Capital structure | |
Balance | 1,751,671 |
Balance | 1,751,671 |
Limited Partner | |
Capital structure | |
Balance | 7,636,173 |
Vesting of LTIP Units | 426,999 |
OP redemptions for UDR stock | 1,961,373 |
Balance | 6,101,799 |
Limited Partner | UDR, Inc. | |
Capital structure | |
Balance | 174,016,155 |
OP redemptions for UDR stock | (1,961,373) |
Balance | 175,977,528 |
Class A Limited Partner | UDR, Inc. | |
Capital structure | |
Balance | 121,661 |
Balance | 121,661 |
General Partner | UDR, Inc. | |
Capital structure | |
Balance | 110,883 |
Balance | 110,883 |
CAPITAL STRUCTURE (UNITED DOM_4
CAPITAL STRUCTURE (UNITED DOMINION REALTY, L.P.) - Ownership Interests (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)class$ / sharesshares | Dec. 31, 2018USD ($)shares | |
Capital structure | ||
Limited partnership units owned | 184,063,542 | 183,636,543 |
Redeemable noncontrolling interests in the Operating Partnership | $ | $ 1,072,181 | $ 972,740 |
Number of classes of LTIP Units | class | 2 | |
United Dominion Realty L.P. | ||
Capital structure | ||
Limited partnership units owned | 176,210,072 | |
United Dominion Realty L.P. | ||
Capital structure | ||
General Partnership units outstanding | 110,883 | 110,883 |
Limited partnership units owned | 183,952,659 | 183,525,660 |
Required period to be outstanding before unit is redeemable (in years) | 1 year | |
Redeemable noncontrolling interests in the Operating Partnership | $ | $ 380,700 | $ 371,900 |
UDR, Inc. | ||
Capital structure | ||
Limited partnership units owned | 176,099,189 | 174,137,816 |
Percentage of units | 95.70% | 94.90% |
UDR, Inc. | United Dominion Realty L.P. | ||
Capital structure | ||
General Partnership units outstanding | 176,210,072 | |
Percentage of units | 94.90% | |
Non-affiliated Partners | ||
Capital structure | ||
Limited partnership units owned | 7,853,470 | |
Percentage of units | 4.30% | |
Non-affiliated Partners | United Dominion Realty L.P. | ||
Capital structure | ||
Limited partnership units owned | 7,853,470 | |
Percentage of units | 4.30% | 5.10% |
Class A Limited Partner | ||
Capital structure | ||
Cumulative, annual, non-compounded preferred return on Class A Partnership units | 8.00% | |
Value of Class A Partnership units (in dollars per share) | $ / shares | $ 16.61 | |
Class A Limited Partner | United Dominion Realty L.P. | ||
Capital structure | ||
Limited partnership units owned | 1,873,332 | 1,873,332 |
Class A Limited Partner | UDR, Inc. | ||
Capital structure | ||
Limited partnership units owned | 121,661 | 121,661 |
Non-affiliated Partners | United Dominion Realty L.P. | ||
Capital structure | ||
Limited partnership units owned | 7,853,470 | 9,387,844 |
Percentage of units | 4.30% | 5.10% |
Non-affiliated Partners | Class A Limited Partner | ||
Capital structure | ||
Limited partnership units owned | 1,751,671 | 1,751,671 |
LTIP Units One | ||
Capital structure | ||
Vesting period | 4 years | |
Minimum | LTIP Units | ||
Capital structure | ||
Vesting period | 1 year | |
Period of time LTIP units have been outstanding | 2 years | |
Minimum | Employee Director | LTIP Units Two | ||
Capital structure | ||
Vesting period | 1 year | |
Maximum | LTIP Units | ||
Capital structure | ||
Vesting period | 3 years | |
Maximum | Employee Director | LTIP Units Two | ||
Capital structure | ||
Vesting period | 3 years |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES (UNITED DOMINION REALTY, L.P.) Commitments and Contingencies (Details) $ in Thousands | Sep. 30, 2019USD ($)community |
Commitments | |
Number of communities owned (in communities) | community | 138 |
Cost Incurred to Date | $ 114,536 |
UDR's Remaining Commitment | $ 157,459 |
United Dominion Realty L.P. | |
Commitments | |
Number of communities owned (in communities) | community | 52 |
Real estate communities - redevelopment | United Dominion Realty L.P. | |
Commitments | |
Number of communities owned (in communities) | community | 1 |
Cost Incurred to Date | $ 6,254 |
UDR's Remaining Commitment | $ 18,746 |
Wholly owned - under development | |
Commitments | |
Number of communities owned (in communities) | community | 1 |
Cost Incurred to Date | $ 21,845 |
UDR's Remaining Commitment | $ 75,655 |
REPORTABLE SEGMENTS (UNITED D_3
REPORTABLE SEGMENTS (UNITED DOMINION REALTY, L.P.) (Details). $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2019USD ($)item | Sep. 30, 2018USD ($)item | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($)item | Sep. 30, 2019USD ($)home | Sep. 30, 2019USD ($)segment | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segments | ||||||||||
Equity Method Investments | $ 791,180 | $ 791,180 | $ 791,180 | $ 791,180 | $ 791,180 | $ 791,180 | $ 780,869 | |||
Same store communities | 38,177 | 38,177 | 37,959 | 38,177 | 37,959 | |||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Rental income | $ 289,008 | $ 263,256 | 835,393 | $ 770,373 | ||||||
Reconciling items: | ||||||||||
Property management | (8,309) | (7,240) | (24,018) | (21,185) | ||||||
Other operating expenses | (2,751) | (3,314) | (11,132) | (8,148) | ||||||
Real estate depreciation and amortization | (127,391) | (107,881) | (357,793) | (322,537) | ||||||
General and administrative | (12,197) | (11,896) | (37,002) | (36,028) | ||||||
Casualty-related (charges)/recoveries, net | 1,088 | (678) | 842 | (2,364) | ||||||
Gain/(loss) on sale of real estate owned | 5,282 | 70,300 | ||||||||
Income/(loss) from unconsolidated entities | 12,713 | (1,382) | 19,387 | (5,091) | ||||||
Interest expense | (42,523) | (34,401) | (110,482) | (95,942) | ||||||
Net (income)/loss attributable to noncontrolling interests | (56) | (32) | (145) | (141) | ||||||
Net income/(loss) attributable to OP unitholders | 27,204 | 18,610 | 87,326 | 120,967 | ||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 11,564,395 | 11,564,395 | $ 11,564,395 | $ 11,564,395 | 11,564,395 | 11,564,395 | 10,196,159 | |||
Accumulated depreciation | (4,000,608) | (4,000,608) | (4,000,608) | (4,000,608) | (4,000,608) | (4,000,608) | (3,654,160) | |||
Total real estate owned, net of accumulated depreciation | 7,563,787 | 7,563,787 | 7,563,787 | 7,563,787 | 7,563,787 | 7,563,787 | 6,541,999 | |||
Total segment asset - net book value | 7,563,787 | 7,563,787 | 7,563,787 | 7,563,787 | 7,563,787 | 7,563,787 | 6,541,999 | |||
Reconciling items: | ||||||||||
Cash and cash equivalents | 1,895 | 1,084 | 1,895 | 1,895 | 1,895 | 1,895 | 1,895 | 1,084 | 185,216 | $ 2,038 |
Restricted cash | 21,646 | 26,996 | 21,646 | 21,646 | 21,646 | 21,646 | 21,646 | 26,996 | 23,675 | 19,792 |
Investment in unconsolidated entities | 791,180 | 791,180 | 791,180 | 791,180 | 791,180 | 791,180 | 780,869 | |||
Operating lease right-of-use assets | 135,889 | 135,889 | 135,889 | 135,889 | 135,889 | 135,889 | ||||
Other assets | 145,301 | 145,301 | 145,301 | 145,301 | 145,301 | 145,301 | 137,710 | |||
Total assets | 8,697,597 | $ 8,697,597 | 8,697,597 | 8,697,597 | $ 8,697,597 | 8,697,597 | 7,711,728 | |||
Reportable Segments | ||||||||||
Number of reportable segments | segment | 2 | |||||||||
Condition for Community considered to have stabilized occupancy | 90% | |||||||||
Time to maintain percent occupancy to be considered a community | 3 months | |||||||||
Practical expedient, single lease component | true | |||||||||
Same Store Communities West Region | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 99,316 | 95,447 | 293,294 | 281,722 | ||||||
Other revenue | 7,869 | 7,168 | 23,488 | 21,567 | ||||||
Rental income | 107,185 | 102,615 | 316,782 | 303,289 | ||||||
Reportable apartment home segment NOI | 81,170 | 77,321 | 240,442 | 229,129 | ||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 3,797,149 | $ 3,797,149 | 3,797,149 | 3,797,149 | $ 3,797,149 | 3,797,149 | 3,763,366 | |||
Same Store Communities Mid-Atlantic Region | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 52,826 | 51,291 | 157,179 | 152,867 | ||||||
Other revenue | 4,376 | 4,032 | 12,958 | 11,944 | ||||||
Rental income | 57,202 | 55,323 | 170,137 | 164,811 | ||||||
Reportable apartment home segment NOI | 39,850 | 38,220 | 119,075 | 114,465 | ||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 2,338,963 | 2,338,963 | 2,338,963 | 2,338,963 | 2,338,963 | 2,338,963 | 2,317,369 | |||
Same Store Communities Southeast Region | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 28,540 | 27,773 | 84,551 | 81,554 | ||||||
Other revenue | 3,438 | 3,211 | 10,423 | 9,918 | ||||||
Rental income | 31,978 | 30,984 | 94,974 | 91,472 | ||||||
Reportable apartment home segment NOI | 22,133 | 21,597 | 66,301 | 63,806 | ||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 799,739 | 799,739 | 799,739 | 799,739 | 799,739 | 799,739 | 779,310 | |||
Same Store Communities Northeast Region | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 30,196 | 29,491 | 89,650 | 87,776 | ||||||
Other revenue | 1,321 | 1,226 | 3,753 | 3,422 | ||||||
Rental income | 31,517 | 30,717 | 93,403 | 91,198 | ||||||
Reportable apartment home segment NOI | 20,560 | 20,640 | 63,012 | 62,710 | ||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 1,498,500 | 1,498,500 | 1,498,500 | 1,498,500 | 1,498,500 | 1,498,500 | 1,491,994 | |||
Same Store Communities Southwest Region | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 15,451 | 15,060 | 40,705 | 39,586 | ||||||
Other revenue | 1,527 | 1,525 | 4,100 | 3,986 | ||||||
Rental income | 16,978 | 16,585 | 44,805 | 43,572 | ||||||
Reportable apartment home segment NOI | 10,449 | 9,899 | 26,995 | 25,760 | ||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 595,982 | 595,982 | 595,982 | 595,982 | 595,982 | 595,982 | 589,188 | |||
Non-Mature communities/Other | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 40,975 | 24,237 | 106,499 | 66,906 | ||||||
Other revenue | 3,173 | 2,795 | 8,793 | 9,125 | ||||||
Rental income | 44,148 | 27,032 | 115,292 | 76,031 | ||||||
Reportable apartment home segment NOI | 29,487 | 17,137 | 77,242 | 48,833 | ||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 2,534,062 | 2,534,062 | 2,534,062 | 2,534,062 | 2,534,062 | 2,534,062 | 1,254,932 | |||
Total Communities | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 267,304 | 243,299 | 771,878 | 710,411 | ||||||
Other revenue | 21,704 | 19,957 | 63,515 | 59,962 | ||||||
Rental income | 289,008 | 263,256 | 835,393 | 770,373 | ||||||
Reportable apartment home segment NOI | 203,649 | 184,814 | 593,067 | 544,703 | ||||||
United Dominion Realty L.P. | ||||||||||
Segments | ||||||||||
Equity Method Investments | $ 82,269 | 82,269 | $ 82,269 | $ 82,269 | 82,269 | 82,269 | 103,026 | |||
Same store communities | 15,941 | 15,723 | 15,941 | |||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Rental income | $ 111,700 | 109,539 | 330,384 | 323,397 | ||||||
Reconciling items: | ||||||||||
Property management | (3,211) | (3,012) | (9,498) | (8,893) | ||||||
Other operating expenses | (2,301) | (2,347) | (7,123) | (6,098) | ||||||
Real estate depreciation and amortization | (35,155) | (35,043) | (104,730) | (108,906) | ||||||
General and administrative | (4,066) | (4,143) | (12,878) | (12,997) | ||||||
Casualty-related (charges)/recoveries, net | 1,088 | 10 | 1,169 | (906) | ||||||
Gain/(loss) on sale of real estate owned | 70,300 | |||||||||
Income/(loss) from unconsolidated entities | (2,383) | (2,378) | (6,917) | (10,102) | ||||||
Interest expense | (7,521) | (5,100) | (22,247) | (15,209) | ||||||
Net (income)/loss attributable to noncontrolling interests | (448) | (440) | (1,252) | (1,278) | ||||||
Net income/(loss) attributable to OP unitholders | 26,835 | 27,695 | 78,175 | 143,883 | ||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 3,861,754 | 3,861,754 | $ 3,861,754 | $ 3,861,754 | 3,861,754 | 3,861,754 | 3,811,985 | |||
Accumulated depreciation | (1,762,168) | (1,762,168) | (1,762,168) | (1,762,168) | (1,762,168) | (1,762,168) | (1,658,161) | |||
Total real estate owned, net of accumulated depreciation | 2,099,586 | 2,099,586 | 2,099,586 | 2,099,586 | 2,099,586 | 2,099,586 | 2,153,824 | |||
Total segment asset - net book value | 2,099,586 | 2,099,586 | 2,099,586 | 2,099,586 | 2,099,586 | 2,099,586 | 2,153,824 | |||
Reconciling items: | ||||||||||
Cash and cash equivalents | 40 | 83 | 40 | 40 | 40 | 40 | 40 | 83 | 125 | 293 |
Restricted cash | 14,637 | 13,515 | 14,637 | 14,637 | 14,637 | 14,637 | 14,637 | 13,515 | 13,563 | $ 12,579 |
Investment in unconsolidated entities | 82,269 | 82,269 | 82,269 | 82,269 | 82,269 | 82,269 | 103,026 | |||
Operating lease right-of-use assets | 135,766 | 135,766 | 135,766 | 135,766 | 135,766 | 135,766 | ||||
Other assets | 23,321 | 23,321 | 23,321 | 23,321 | 23,321 | 23,321 | 34,052 | |||
Total assets | 2,355,619 | $ 2,355,619 | 2,355,619 | 2,355,619 | $ 2,355,619 | 2,355,619 | 2,304,590 | |||
Reportable Segments | ||||||||||
Number of reportable segments | segment | 2 | |||||||||
Condition for Community considered to have stabilized occupancy | 90% | |||||||||
Time to maintain percent occupancy to be considered a community | 3 months | |||||||||
Practical expedient, single lease component | true | |||||||||
United Dominion Realty L.P. | Same Store Communities West Region | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 62,760 | 60,569 | 185,840 | 178,401 | ||||||
Other revenue | 2,063 | 1,750 | 5,908 | 5,484 | ||||||
Rental income | 64,823 | 62,319 | 191,748 | 183,885 | ||||||
Reportable apartment home segment NOI | 49,528 | 47,692 | 146,673 | 140,603 | ||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 2,003,088 | $ 2,003,088 | 2,003,088 | 2,003,088 | $ 2,003,088 | 2,003,088 | 1,981,007 | |||
United Dominion Realty L.P. | Same Store Communities Mid-Atlantic Region | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 14,900 | 14,645 | 44,592 | 43,814 | ||||||
Other revenue | 551 | 441 | 1,515 | 1,359 | ||||||
Rental income | 15,451 | 15,086 | 46,107 | 45,173 | ||||||
Reportable apartment home segment NOI | 10,611 | 10,178 | 31,691 | 30,953 | ||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 667,755 | 667,755 | 667,755 | 667,755 | 667,755 | 667,755 | 663,083 | |||
United Dominion Realty L.P. | Same Store Communities Southeast Region | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 12,808 | 12,604 | 37,957 | 36,782 | ||||||
Other revenue | 799 | 658 | 2,301 | 2,099 | ||||||
Rental income | 13,607 | 13,262 | 40,258 | 38,881 | ||||||
Reportable apartment home segment NOI | 9,371 | 9,336 | 27,984 | 26,979 | ||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 349,767 | 349,767 | 349,767 | 349,767 | 349,767 | 349,767 | 340,722 | |||
United Dominion Realty L.P. | Same Store Communities Northeast Region | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 8,098 | 7,936 | 24,036 | 23,541 | ||||||
Other revenue | 187 | 178 | 521 | 496 | ||||||
Rental income | 8,285 | 8,114 | 24,557 | 24,037 | ||||||
Reportable apartment home segment NOI | 5,736 | 6,001 | 18,201 | 18,260 | ||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 408,244 | 408,244 | 408,244 | 408,244 | 408,244 | 408,244 | 406,149 | |||
United Dominion Realty L.P. | Same Store Communities Southwest Region | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 1,901 | 1,865 | ||||||||
Other revenue | 87 | 58 | ||||||||
Rental income | 1,988 | 1,923 | ||||||||
Reportable apartment home segment NOI | 1,405 | 1,253 | ||||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 144,028 | 144,028 | 144,028 | 144,028 | 144,028 | 144,028 | 141,882 | |||
United Dominion Realty L.P. | Non-Mature communities/Other | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 7,468 | 8,694 | 27,295 | 30,830 | ||||||
Other revenue | 78 | 141 | 419 | 591 | ||||||
Rental income | 7,546 | 8,835 | 27,714 | 31,421 | ||||||
Reportable apartment home segment NOI | 4,181 | 5,688 | 17,102 | 21,177 | ||||||
Reportable apartment home segment assets: | ||||||||||
Total segment assets | 288,872 | $ 288,872 | $ 288,872 | $ 288,872 | $ 288,872 | 288,872 | $ 279,142 | |||
United Dominion Realty L.P. | Total Communities | ||||||||||
Summary of rental income and NOI for UDRs reportable segments and reconciliation of NOI to loss from continuing operations | ||||||||||
Lease revenue | 107,935 | 106,313 | 319,720 | 313,368 | ||||||
Other revenue | 3,765 | 3,226 | 10,664 | 10,029 | ||||||
Rental income | 111,700 | 109,539 | 330,384 | 323,397 | ||||||
Reportable apartment home segment NOI | $ 80,832 | $ 80,148 | $ 241,651 | $ 237,972 |