The following tables set forth selected consolidated financial and other information of UDR, Inc. and of the Operating Partnership as of and for each of the years in the five-year period ended December 31, 2018. The tables should be read in conjunction with each of UDR, Inc.’s and the Operating Partnership’s respective consolidated financial statements and the notes thereto, and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, included elsewhere in this Report.
| | | | | | | | | | | | | | | |
|---|
| | UDR, Inc. | | | | | | | | | | | | | |
| | Year Ended December 31, | | | | | | | | | | | | | |
| | (In thousands, except per share data | | | | | | | | | | | | | |
| | and apartment homes owned) | | | | | | | | | | | | | |
| | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
| OPERATING DATA: | | | | | | | | | | | | | | | |
| Rental income | | $ | 1,035,105 | | $ | 984,309 | | $ | 948,461 | | $ | 871,928 | | $ | 805,002 |
| Income/(loss) from continuing operations (a) | | | 221,542 | | | 132,655 | | | 320,380 | | | 357,159 | | | 159,832 |
| Income/(loss) from discontinued operations, net of tax | | | — | | | — | | | — | | | — | | | 10 |
| Net income/(loss) | | | 221,542 | | | 132,655 | | | 320,380 | | | 357,159 | | | 159,842 |
| Distributions to preferred stockholders | | | 3,868 | | | 3,708 | | | 3,717 | | | 3,722 | | | 3,724 |
| Net income/(loss) attributable to common stockholders | | | 199,238 | | | 117,850 | | | 289,001 | | | 336,661 | | | 150,610 |
| Common stock distributions declared | | | 348,079 | | | 331,974 | | | 315,102 | | | 289,500 | | | 263,503 |
| Income/(loss) per weighted average common share — basic | | $ | 0.74 | | $ | 0.44 | | $ | 1.09 | | $ | 1.30 | | $ | 0.60 |
| Income/(loss) per weighted average common share — diluted | | $ | 0.74 | | $ | 0.44 | | $ | 1.08 | | $ | 1.29 | | $ | 0.59 |
| Weighted average number of Common Shares outstanding — basic | | | 268,179 | | | 267,024 | | | 265,386 | | | 258,669 | | | 251,528 |
| Weighted average number of Common Shares outstanding — diluted | | | 269,483 | | | 268,830 | | | 267,311 | | | 263,752 | | | 253,445 |
| Weighted average number of Common Shares outstanding, OP Units/DownREIT Units and Common Stock equivalents outstanding — diluted | | | 297,042 | | | 296,672 | | | 295,469 | | | 276,699 | | | 265,728 |
| Common stock distributions declared - per share | | $ | 1.29 | | $ | 1.24 | | $ | 1.18 | | $ | 1.11 | | $ | 1.04 |
| Balance Sheet Data: | | | | | | | | | | | | | | | |
| Real estate owned, at cost (b) | | $ | 10,196,159 | | $ | 10,177,206 | | $ | 9,615,753 | | $ | 9,190,276 | | $ | 8,383,259 |
| Accumulated depreciation (b) | | | 3,654,160 | | | 3,330,166 | | | 2,923,625 | | | 2,646,874 | | | 2,434,772 |
| Total real estate owned, net of accumulated depreciation (b) | | | 6,541,999 | | | 6,847,040 | | | 6,692,128 | | | 6,543,402 | | | 5,948,487 |
| Total assets | | | 7,711,728 | | | 7,733,273 | | | 7,679,584 | | | 7,663,844 | | | 6,828,728 |
| Secured debt, net (b) | | | 601,227 | | | 803,269 | | | 1,130,858 | | | 1,376,945 | | | 1,354,321 |
| Unsecured debt, net | | | 2,946,560 | | | 2,868,394 | | | 2,270,620 | | | 2,193,850 | | | 2,210,978 |
| Total liabilities | | | 3,816,211 | | | 3,949,771 | | | 3,673,132 | | | 3,816,797 | | | 3,810,298 |
| Total stockholders’ equity | | | 2,905,625 | | | 2,825,800 | | | 3,093,110 | | | 2,899,755 | | | 2,735,097 |
| Number of Common Shares outstanding | | | 275,546 | | | 267,822 | | | 267,259 | | | 261,845 | | | 255,115 |
| Other Data (b) | | | | | | | | | | | | | | | |
| Total consolidated apartment homes owned (at end of year) | | | 39,931 | | | 39,998 | | | 39,454 | | | 40,728 | | | 39,851 |
| Weighted average number of consolidated apartment homes owned during the year | | | 39,406 | | | 39,692 | | | 40,543 | | | 39,501 | | | 40,644 |
| Cash Flow Data: | | | | | | | | | | | | | | | |
| Cash provided by/(used in) operating activities (c) | | $ | 560,676 | | $ | 518,915 | | $ | 536,568 | | $ | 457,162 | | $ | 397,582 |
| Cash provided by/(used in) investing activities (c) | | | (113,548) | | | (407,406) | | | (112,720) | | | (265,538) | | | (299,338) |
| Cash provided by/(used in) financing activities | | | (260,067) | | | (111,785) | | | (429,282) | | | (201,648) | | | (113,725) |
| Funds from Operations (d): | | | | | | | | | | | | | | | |
| Funds from operations attributable to common stockholders and unitholders — basic | | $ | 570,254 | | $ | 538,916 | | $ | 527,096 | | $ | 455,565 | | $ | 411,702 |
| Funds from operations attributable to common stockholders and unitholders — diluted | | | 574,122 | | | 542,624 | | | 530,813 | | | 459,287 | | | 415,426 |
| (a) | | As a result of SEC rule changes effective November 2018, Income/(loss) from continuing operations has been retrospectively updated to include Gain/(loss) on the sale of real estate. For additional information, see Note 2, Significant Accounting Policies, in the notes to the UDR Consolidated Financial Statements included in this Report. As a result, the following retrospective changes were made to the above table: |
|---|
| | | | | | | | | | | | |
|---|
| | Year ended December 31, | | | | | | | | | | |
| | 2017 | | | 2016 | | | 2015 | | | 2014 | |
| Income/(loss) from continuing operations - as previously reported | | $ | 89,251 | | $ | 109,529 | | $ | 105,482 | | $ | 16,260 |
| Gain/(loss) on sale of real estate owned, net of tax | | | 43,404 | | | 210,851 | | | 251,677 | | | 143,572 |
| Income/(loss) from continuing operations - as reported herein | | $ | 132,655 | | $ | 320,380 | | $ | 357,159 | | $ | 159,832 |
| (b) | | Includes amounts classified as Held for Disposition, where applicable. |
|---|
| (c) | | The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) ASU 2016‑18, Statement of Cash Flows (Topic 230), Restricted Cash. See Note 2, Significant Accounting Policies, in the Notes to the UDR, Inc. Consolidated Financial Statements included in this Report for a complete decription of the ASU and its impact. As a result, the following retrospective changes were made to the above table: |
|---|
| | | | | | | | | | | | |
|---|
| | Year ended December 31, | | | | | | | | | | |
| | 2017 | | | 2016 | | | 2015 | | | 2014 | |
| Net cash provided by/(used in) operating activities - as previously reported | | $ | 519,152 | | $ | 536,929 | | $ | 458,627 | | $ | 397,303 |
| (Increase)/decrease in operating assets | | | (237) | | | (361) | | | (1,465) | | | 279 |
| Net cash provided by /(used in) operating activities - as reported herein | | $ | 518,915 | | $ | 536,568 | | $ | 457,162 | | $ | 397,582 |
| | | | | | | | | | | | |
| Net cash provided by /(used in) investing activities - as previously reported | | $ | (407,441) | | $ | (112,277) | | $ | (265,461) | | $ | (298,603) |
| Proceeds from sales of real estate investments, net | | | - | | | (555) | | | - | | | (82) |
| Capital expenditures and other major improvements — real estate assets, net of escrow reimbursement | | | 35 | | | 112 | | | (77) | | | (653) |
| Net cash provided by /(used in) investing activities - as reported herein | | $ | (407,406) | | $ | (112,720) | | $ | (265,538) | | $ | (299,338) |
| (d) | | Funds from operations (“FFO”) is defined as Net income/(loss) attributable to common stockholders (computed in accordance with GAAP), excluding impairment write-downs of depreciable real estate or of investments in non-consolidated investees that are driven by measurable decreases in the fair value of depreciable real estate held by the investee, gains or losses from sales of depreciable property, plus real estate depreciation and amortization, and after adjustments for noncontrolling interests, unconsolidated partnerships and joint ventures. This definition conforms with the National Association of Real Estate Investment Trust’s (“NAREIT”) definition issued in April 2002. Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Thus, NAREIT created FFO as a supplemental measure of a REIT’s operating performance. In the computation of diluted FFO, if OP Units, DownREIT Units, unvested restricted stock, unvested LTIP Units, stock options, and the shares of Series E Cumulative Convertible Preferred Stock are dilutive, they are included in the diluted share count. |
|---|
We consider FFO a useful metric for investors as we use FFO in evaluating property acquisitions and our operating performance, and believe that FFO should be considered along with, but not as an alternative to, net income and cash flow as a measure of our activities in accordance with GAAP. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of funds available to fund our cash needs.
See “Funds from Operations” in Item 7. Management Discussion and Analysis of Financial Condition and Results of Operations for a reconciliation of Net income/(loss) attributable to common stockholders to FFO.
United Dominion Realty, L.P.
Year Ended December 31,
(In thousands, except per OP unit data
and apartment homes owned)
| | | | | | | | | | | | | | | |
|---|
| | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
| OPERATING DATA: | | | | | | | | | | | | | | | |
| Rental income | | $ | 431,920 | | $ | 419,377 | | $ | 404,415 | | $ | 440,408 | | $ | 422,634 |
| Net income/(loss) (a) | | | 231,485 | | | 107,855 | | | 79,262 | | | 215,063 | | | 97,179 |
| Net income/(loss) attributable to OP unitholders | | | 229,763 | | | 106,307 | | | 77,818 | | | 213,301 | | | 96,227 |
| Income/(loss) per weighted average OP Unit - basic and diluted | | $ | 1.25 | | $ | 0.58 | | $ | 0.42 | | $ | 1.16 | | $ | 0.53 |
| Weighted average number of OP Units outstanding — basic and diluted | | | 183,609 | | | 183,344 | | | 183,279 | | | 183,279 | | | 183,279 |
| Balance Sheet Data: | | | | | | | | | | | | | | | |
| Real estate owned, at cost (b) | | $ | 3,811,985 | | $ | 3,816,956 | | $ | 3,674,704 | | $ | 3,630,950 | | $ | 4,238,770 |
| Accumulated depreciation (b) | | | 1,658,161 | | | 1,543,652 | | | 1,408,815 | | | 1,281,258 | | | 1,403,303 |
| Total real estate owned, net of accumulated depreciation (b) | | | 2,153,824 | | | 2,273,304 | | | 2,265,889 | | | 2,349,647 | | | 2,835,467 |
| Total assets | | | 2,304,590 | | | 2,395,573 | | | 2,415,535 | | | 2,554,808 | | | 2,873,809 |
| Secured debt, net (b) | | | 26,929 | | | 159,845 | | | 433,974 | | | 475,964 | | | 927,484 |
| Total liabilities | | | 818,701 | | | 520,443 | | | 797,036 | | | 833,478 | | | 1,139,758 |
| Total partners’ capital | | | 1,472,070 | | | 1,464,295 | | | 1,578,202 | | | 1,713,412 | | | 1,703,001 |
| Advances (to)/from the General Partner | | | — | | | 397,899 | | | 19,659 | | | (11,270) | | | 13,624 |
| Number of OP units outstanding | | | 183,637 | | | 183,351 | | | 183,279 | | | 183,279 | | | 183,279 |
| Other Data: | | | | | | | | | | | | | | | |
| Total consolidated apartment homes owned (at end of year) (b) | | | 16,434 | | | 16,698 | | | 16,698 | | | 16,974 | | | 20,814 |
| Cash Flow Data: | | | | | | | | | | | | | | | |
| Cash provided by/(used in) operating activities (c) | | $ | 255,668 | | $ | 235,257 | | $ | 228,941 | | $ | 224,396 | | $ | 208,118 |
| Cash provided by/(used in) investing activities (c) | | | 71,683 | | | (105,989) | | | (9,455) | | | 23,485 | | | (46,451) |
| Cash provided by/(used in) financing activities | | | (326,535) | | | (128,846) | | | (221,483) | | | (247,747) | | | (162,777) |
| (a) | | As a result of SEC rule changes effective November 2018, Income/(loss) from continuing operations has been retrospectively updated to include Gain/(loss) on the sale of real estate and is now presented as Net income/(loss). For additional information, see Note 2, Significant Accounting Policies, in the notes to the United Dominion Realty, L.P. Consolidated Financial Statements included in this Report. |
|---|
| (b) | | Includes amounts classified as Held for Disposition, where applicable. |
|---|
| (c) | | The Operating Partnership adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) ASU 2016‑18, Statement of Cash Flows (Topic 230), Restricted Cash. See Note 2, Significant Accounting Policies, in the Notes to the United Dominion Realty, L.P. Consolidated Financial Statements included in this Report for a complete decription of the ASU and its impact. As a result, the following retrospective changes were made to the above table: |
|---|
| | | | | | | | | | | | |
|---|
| | Year ended December 31, | | | | | | | | | | |
| | 2017 | | | 2016 | | | 2015 | | | 2014 | |
| Net cash provided by/(used in) operating activities - as previously reported | | $ | 234,463 | | $ | 228,682 | | $ | 226,765 | | $ | 208,032 |
| (Increase)/decrease in operating assets | | | 794 | | | 259 | | | (2,369) | | | 86 |
| Net cash provided by /(used in) operating activities - as reported herein | | $ | 235,257 | | $ | 228,941 | | $ | 224,396 | | $ | 208,118 |
| | | | | | | | | | | | |
| Net cash provided by /(used in) investing activities - as previously reported | | $ | (106,080) | | $ | (9,546) | | $ | 23,583 | | $ | (46,650) |
| Capital expenditures and other major improvements — real estate assets, net of escrow reimbursement | | | 91 | | | 91 | | | (98) | | | 199 |
| Net cash provided by /(used in) investing activities - as reported herein | | $ | (105,989) | | $ | (9,455) | | $ | 23,485 | | $ | (46,451) |
filings.tools