UDR Inc. (UDR) filed Quarterly Report for the period ended 2009-09-30.
United Dominion Realty Trust Inc. is a leading multi-family 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. UDR has delivered long-term value to shareholders the best standard of service to residents and the highest quality experience for associates. Udr Inc. has a market cap of $2.17 billion; its shares were traded at around $14.4 with a P/E ratio of 10.4 and P/S ratio of 3.8. The dividend yield of Udr Inc. stocks is 5%.
Highlight of Business Operations:
On September 15, 2009, under its “At the Market” equity distribution program, the Company entered into a sales agreement (the “Sales Agreement”) with Merrill Lynch, Pierce, Fenner & Smith Incorporated (“BAML”) and Morgan Stanley & Co. Incorporated, as sales agents and/or principals (the “Agents”). Under the terms of the Sales Agreement, the Company may sell up to 15 million shares of its common stock from time to time, to or through the Agents, by means of ordinary brokers’ transactions on the New York Stock Exchange at prevailing market prices at the time of sale, or as otherwise agreed with the applicable Agent. The Company will pay each Agent compensation for sales of the shares equal to 2% of the gross sales price per share of shares sold through such Agent, as sales agent, under the Sales Agreement. During the three months ended September 30, 2009, the Company sold 2,269,400 shares of common stock under the Sales Agreement through BAML, acting as our agent, at an average price per share of $14.89, for aggregate gross proceeds of approximately $33.8 million. Aggregate net proceeds from such sales, after deducting commissions to BAML of approximately $676,000 and other transaction costs of approximately $161,000, were approximately $33.0 million.
In addition to the $1.6 million of scheduled debt maturities outstanding at September 30, 2009, the Company anticipates prepaying $90.3 million of 2010 secured debt with proceeds from borrowings under our secured or unsecured credit facilities during the remainder of 2009.
For the nine months ended September 30, 2009, our cash flow provided by operating activities was $189.7 million compared to $138.7 million for the comparable period in 2008. The increase in cash flow from operating activities is primarily due to changes in other assets and accrued liabilities.
For the nine months ended September 30, 2009, net cash used in investing activities was $95.7 million as compared to net cash provided by investing activities of $409.5 million for the comparable period in 2008. Changes in the level of investing activities from period to period reflects our strategy as it relates to our disposition, acquisition, capital expenditures, and development programs, as well as the impact of the capital market environment on these activities, all of which are discussed in further detail below.
During the nine months ended September 30, 2009, $65.2 million or approximately $1,500 per home was spent on capital expenditures for all of our communities, excluding development, condominium conversions and commercial properties. These capital improvements included turnover related expenditures for floor coverings and appliances, other recurring capital expenditures such as roofs, siding, parking lots, and asset preservation capital expenditures, which aggregated $22.2 million or $511 per home. In addition, revenue enhancing capital expenditures, kitchen and bath upgrades, and other exterior/interior upgrades totaled $19.3 million or $445 per home, and major renovations totaled $23.7 million or $544 per home for the nine months ended September 30, 2009.
UDR is in the portfolios of Chris Davis of Davis Selected Advisers.
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