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UDR Completes $500 Million Asset Exchange

^{Published on 2011-04-06 17:20:43 - Market Wire}
 

DENVER--([ BUSINESS WIRE ])--[ UDR, Inc. ] (the "Company") (NYSE: UDR), a leading multifamily real estate investment trust, today announced that it has completed a $500 million asset exchange with AvalonBay Communities, Inc. UDR acquired the following three communities and one land parcel for $263 million:

"The completion of this transaction further advances our strategic plan of reducing the average age of the portfolio while increasing the average monthly income per apartment home"

UDR sold the following communities for $237 million:

(1) Average Rent per Home is defined as monthly leased rent on occupied apartment homes as of March 31, 2011.

aThe completion of this transaction further advances our strategic plan of reducing the average age of the portfolio while increasing the average monthly income per apartment home,a said Tom Toomey, president and chief executive officer of UDR. aThis exchange increases our exposure in Boston and San Francisco, markets where we were previously underweight, while simultaneously reducing our overweight exposure in Southern California.a

After the close of this transaction, UDR will own, or have an ownership interest, in eight communities consisting of 2,481 homes in the Boston metro area, 12 communities consisting of 2,676 homes in the San Francisco metro area and 30 communities consisting of 8,095 homes in Southern California.

[ 388 Beale ] consists of two-20 story high rise towers and is located in the urban Rincon Hill neighborhood of downtown San Francisco. Community amenities include a 24-hour concierge service, outdoor spa, state-of-the art fitness center, social lounge, and a controlled access on-site parking garage. The communitya™s one-, two-, and three-bedroom homes feature floor-to-ceiling windows with panoramic views of San Francisco, fully equipped gourmet kitchens, and full-size washers and dryers. Residents are within walking distance of the Financial District, Embarcadero, and the Bay Bridge.

[ 14 North ] is located north of Boston in Peabody, MA. The community amenities include a clubhouse, state-of-the art fitness center, landscaped picnic areas with covered atriums and barbeque grills, and a resort style swimming pool and sundeck. One-, two-, and three-bedroom homes, and lofts, feature open floor plans with bay windows, lofted ceilings, and spacious walk-in closets. The community offers easy access to Interstate 95 and US-1, as well as the Salem Train Station, providing convenient access to the greater Boston area.

[ Inwood West ] is located north of Boston in Woburn, MA. The community offers a clubhouse with an indoor basketball court, state-of-the art fitness center, beautifully landscaped picnic areas with barbeque grills, and a childrena™s play area. One- and two-bedroom homes, and lofts, include generous floor plans, fully equipped gourmet kitchens, and washer and dryer units in every home. Residents have an array of transportation options ranging from train and bus stations, Amtraka™s high speed rail line, and convenient access to Interstate 93 with direct highway access to Downtown Boston. The acquisition also includes a 9-acre land parcel which is entitled to build 34 market rate apartment homes.

The acquisition was funded through the proceeds from the disposition of the above mentioned communities, the assumption of an existing $56 million mortgage with an all-in fixed rate of 5.86% that matures in May 2019 (Inwood West), and an additional cash payment of approximately $26 million. This transaction is in addition to the previously disclosed $500 million of acquisition guidance and does not change the 2011 earnings guidance provided by the Company on its fourth quarter earnings call.

Forward Looking Statements

Certain statements made in this release may constitute "forward-looking statements." Words such as "expects," "intends," "believes," "anticipates," "likely," "will," "seeks," "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors, which include, but are not limited to, unfavorable changes in the apartment market, changing economic conditions, the impact of inflation/deflation on rental rates and property operating expenses, expectations concerning availability of capital and the stabilization of the capital markets, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule, expectations on job growth, home affordability and demand/supply ratio for multifamily housing, expectations concerning development and redevelopment activities, expectations on occupancy levels, expectations concerning the Vitruvian Park^SM development, expectations concerning the joint venture with MetLife, expectations that automation will help grow net operating income, expectations on annualized net operating income and other risk factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time, including the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking statements. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this presentation, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the U.S. Securities Law.

This release and these forward-looking statements include UDRa™s analysis and conclusions and reflect UDRa™s judgment as of the date of these materials. UDR assumes no obligation to revise or update to reflect future events or circumstances.

About UDR, Inc.

UDR, Inc. (NYSE:[ UDR ]), an S&P 400 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of December 31, 2010, UDR owned or had an ownership position in 59,614 apartment homes including 930 homes under development. For over 38 years, UDR has delivered long-term value to shareholders, the best standard of service to residents, and the highest quality experience for associates. Additional information can be found on the Company's website at [ www.udr.com ].