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UDR Inc. Reports Operating Results (10-Q)

November 09, 2010 | About:
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10qk

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UDR Inc. (UDR) filed Quarterly Report for the period ended 2010-09-30.

Udr Inc. has a market cap of $3.87 billion; its shares were traded at around $23.67 with a P/E ratio of 20.8 and P/S ratio of 6.4. The dividend yield of Udr Inc. stocks is 3.1%. Udr Inc. had an annual average earning growth of 9.7% over the past 5 years.UDR is in the portfolios of Chris Davis of Davis Selected Advisers, Jim Simons of Renaissance Technologies LLC, Manning & Napier Advisors, Inc, Jeremy Grantham of GMO LLC.

Highlight of Business Operations:

On September 13, 2010, the Company entered into an agreement to sell 16,000,000 shares of its common stock at a price of $20.35 per share in an underwritten public offering. The Company granted the underwriters a 30-day option to purchase up to an additional 2,400,000 shares of common stock to cover overallotments, if any. We sold 18,400,000 shares of common stock in this offering, with aggregate gross proceeds of approximately $374.4 million at a price per share of $20.35. Aggregate net proceeds from the offering, after deducting related expenses were approximately $359.2 million.

On September 15, 2009, the Company entered into an equity distribution agreement under which the Company may offer and sell up to 15.0 million shares of its common stock over time to or through its sales agents. During the three months ended September 30, 2010, we sold 239,014 shares of common stock through this program for aggregate gross proceeds of approximately $5.1 million at a weighted average price per share of $21.47. Aggregate net proceeds from such sales, after deducting related expenses, including commissions paid to the sales agents of approximately $100,000, were approximately $5.0 million. During the nine months ended September 30, 2010, we sold 6,144,367 shares of common stock through this program for aggregate gross proceeds of approximately $110.8 million at a weighted average price per share of $18.04. Aggregate net proceeds from such sales, after deducting related expenses, including commissions paid to the sales agents of approximately $2.2 million, were approximately $108.6 million.

For the nine months ended September 30, 2010, our net cash flow provided by operating activities was $157.5 million compared to $189.7 million for the comparable period in 2009. The decrease in cash flow from operating activities is primarily due to changes in operating assets and liabilities.

For the nine months ended September 30, 2010, net cash used in investing activities was $478.8 million compared to $95.7 million for the comparable period in 2009. Changes in the level of investment activities from period to period reflects our strategy as it relates to acquisitions, capital expenditures, development and disposition activities, as well as the impact of the capital market environment on these activities, all of which are discussed in further detail throughout this Report.

During the three and nine months ended September 30, 2010, the Company acquired five apartment communities located in Orange County, CA; Baltimore, MD; Los Angeles, CA; and Boston, MA for a total gross purchase price of $412.0 million. During the same periods, the Company also acquired land located in San Francisco, CA for a gross purchase price of $23.6 million.

During the nine months ended September 30, 2010, $35.6 million or $798 per home was spent on recurring capital expenditures. These include revenue enhancing capital expenditures, exterior/interior upgrades, turnover related expenditures for floor coverings and appliances, other recurring capital expenditures such as exterior paint, roofs, siding, parking lots, and asset preservation capital expenditures. In addition, major renovations totaled $21.2 million for the nine months ended September 30, 2010. Total capital expenditures, which in aggregate include recurring capital expenditures and major renovations, of $56.8 million or $1,274 per home was spent on all of our communities, excluding development and commercial properties, for the nine months ended September 30, 2010.

Read the The complete Report

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