UDR Provides Update on COVID-19


DENVER–()–UDR, Inc. (the “Company”) (NYSE: UDR), a leading multifamily real estate investment trust, announced today that it expects first quarter 2020 results to be in-line with previously announced guidance. Due to uncertainty around the economic impact of the novel coronavirus (COVID-19) pandemic and related government actions and regulations on the Company’s financial results, UDR will address full-year 2020 guidance on the Company’s first quarter 2020 earnings conference call.

Supporting our Residents and Associates: Since the COVID-19 outbreak began, the Company has actively implemented a variety of policies and procedures to accommodate and assist our Residents, Commercial Tenants, and Associates, the safety of whom is our priority. These include:

  • Implementing best practices, including:

    • Following the guidelines established by the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) to protect our Residents and Associates;
    • Limiting face-to-face interaction and practicing “social distancing” by reducing on-site leasing office staff (where office staff are allowed), closing leasing offices to only UDR Associates, closing all amenity spaces, and reducing on-site maintenance staff by focusing only on emergency needs;
    • Leveraging the Company’s existing electronic platform, through which the majority of our Residents continue to interact with us on-line in a variety of ways including, but not limited to, paying rent, initiating service requests, and social interaction.
    • Shifting all property/home tours to be self-guided or virtual, which is enabled by the Company’s Next Generation Operating Platform;
    • Maintaining consistent communication with our Associates, including providing regularly-updated FAQs to understand policies and follow best practices in the field; and
    • Providing our Associates flexibility around leave and sick time to help meet personal needs resulting from COVID-19.
  • Aligning our operational policies with state and local regulations, which include eviction moratoriums in various markets.
  • Accommodating in a wide variety of ways Residents, Commercial Tenants, and Associates impacted by COVID-19 as needed.

“I want to thank all our Associates for their hard work and dedication during these challenging times. Our day-to-day focus remains on supporting our Associates across the country so they can continue to provide a high level of service and compassion to our Residents,” said Tom Toomey, UDR’s Chairman and Chief Executive Officer. “Our current occupancy remains strong at 97%, which is in-line with expectations. While it is too early to quantify the financial impacts COVID-19 will ultimately have on our business, we have a strong culture, a robust balance sheet, and ample liquidity to continue to advance our strategic goals. This positions UDR well to weather the recent economic and market challenges.”

Capital Markets, Liquidity, and Balance Sheet Strength: Over the last several years, the Company has consistently strengthened its balance sheet and improved its liquidity profile. Recent highlights include:

  • Quarter-to-date, and prior to the recent equity market sell-off, UDR entered into forward sales agreements under the Company’s at-the-market equity program for approximately 2.1 million common shares at an initial forward price per share of $49.56, which will be adjusted at settlement 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 agreements. No shares under the forward sales agreements have been settled. The final dates by which shares sold under the forward sales agreements must be settled range between February 12, 2021, and March 3, 2021;
  • The Company is under contract, with hard money deposits, to sell two wholly-owned operating communities located in Greater Seattle, WA, for an aggregate sales price of approximately $142 million. These transactions are expected to close during the second quarter, subject to customary closing conditions and closing price adjustments;
  • The Company has in place a combined $1.175 billion Revolving Credit Facility and Working Capital Credit Facility, with approximately $900 million in available capacity at this time. The Company’s Revolving Credit Facility has a scheduled maturity in 2023, with options to extend maturity into 2024;
  • Only 2%, or $105 million, of the Company’s consolidated debt outstanding is scheduled to mature through 2022 (excluding Commercial Paper and amounts due under the Company’s $75 Million Working Capital Credit Facility);
  • The Company’s unencumbered asset pool comprises 87.5% of total NOI; and
  • The Company has minimal external growth funding commitments with a development pipeline constituting less than 2% of Enterprise Value as of March 25, 2020. Further, UDR has made no additional acquisitions or Developer Capital Commitments since the Company’s last Investor Presentation was filed on February 28, 2020.

Forward Looking Statements

Certain statements made in this press release may constitute “forward-looking statements.” Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “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, the impact of the COVID-19 pandemic, 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 and rental rates, expectations concerning the joint ventures with third parties, expectations that technology 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 SEC 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 press release, 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 laws.

About UDR, Inc.

UDR, Inc. (NYSE: UDR), an S&P 500 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, 2019, UDR owned or had an ownership position in 51,294 apartment homes including 878 homes under development. For over 47 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.



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