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Reportable Segments | 6 Months Ended
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Jun. 30, 2012
Segment Reporting [Abstract] |
REPORTABLE SEGMENTS | REPORTABLE SEGMENTS GAAP guidance requires that segment disclosures present the measure(s) used by the chief operating decision maker to decide how to allocate resources and for purposes of assessing such segments’ performance. UDR’s chief operating decision maker is comprised of several members of its executive management team who use several generally accepted industry financial measures to assess the performance of the business for our reportable operating segments. UDR owns and operates multifamily apartment communities that generate rental and other property related income through the leasing of apartment homes to a diverse base of tenants. The primary financial measures for UDR’s apartment communities are rental income and net operating income (“NOI”). Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. NOI is defined as rental income less direct property rental expenses. Rental expenses include real estate taxes, insurance, personnel, utilities, repairs and maintenance, administrative and marketing. Excluded from NOI is property management expense which is calculated as 2.75% of property revenue to cover the regional supervision and accounting costs related to consolidated property operations, and land rent. UDR’s chief operating decision maker utilizes NOI as the key measure of segment profit or loss. UDR’s two reportable segments are same communities and non-mature/other communities:
• | Same communities represent those communities acquired, developed, and stabilized prior to April 1, 2011 and held as of June 30, 2012. A comparison of operating results from the prior year is meaningful as these communities were owned and had stabilized occupancy and operating expenses as of the beginning of the prior year, there is no plan to conduct substantial redevelopment activities, and the community is not held for disposition within the current year. A community is considered to have stabilized occupancy once it achieves 90% occupancy for at least three consecutive months.
• | Non-mature/other communities represent those communities that were acquired or developed in 2011 and 2012, sold properties, redevelopment properties, properties classified as real estate held for disposition, joint venture properties, and the non-apartment components of mixed use properties.
Management evaluates the performance of each of our apartment communities on a same community and non-mature/other basis, as well as individually and geographically. This is consistent with the aggregation criteria under GAAP as each of our apartment communities generally has similar economic characteristics, facilities, services, and tenants. Therefore, the Company’s reportable segments have been aggregated by geography in a manner identical to that which is provided to the chief operating decision maker. All revenues are from external customers and no single tenant or related group of tenants contributed 10% or more of UDR’s total revenues during the three and six months ended June 30, 2012 and 2011. The accounting policies applicable to the operating segments described above are the same as those described in Note 2, Significant Accounting Policies. The following table details rental income and NOI from continuing and discontinued operations for UDR’s reportable segments for the three and six months ended June 30, 2012 and 2011, and reconciles NOI to net income/(loss) attributable to UDR per the Consolidated Statements of Operations (dollars in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2012 |  | 2011 |  | 2012 |  | 2011
Reportable apartment home segment rental income |  |  |  |  |  |  |
Same Communities |  |  |  |  |  |  |
Western Region | $ | 54,740 |  |  | $ | 51,450 |  |  | $ | 108,031 |  |  | $ | 101,627 |
Mid-Atlantic Region | 39,063 |  |  | 37,482 |  |  | 77,572 |  |  | 74,343 |
Southeastern Region | 27,364 |  |  | 26,081 |  |  | 54,377 |  |  | 51,889 |
Southwestern Region | 10,855 |  |  | 10,019 |  |  | 21,435 |  |  | 19,808 |
Non-Mature communities/Other | 58,668 |  |  | 52,186 |  |  | 118,618 |  |  | 100,053 |
Total segment and consolidated rental income | $ | 190,690 |  |  | $ | 177,218 |  |  | $ | 380,033 |  |  | $ | 347,720 |
Reportable apartment home segment NOI |  |  |  |  |  |  |
Same Communities |  |  |  |  |  |  |
Western Region | $ | 38,130 |  |  | $ | 35,569 |  |  | $ | 75,214 |  |  | $ | 69,661 |
Mid-Atlantic Region | 27,086 |  |  | 25,964 |  |  | 53,765 |  |  | 51,030 |
Southeastern Region | 17,764 |  |  | 16,280 |  |  | 35,358 |  |  | 32,516 |
Southwestern Region | 6,229 |  |  | 5,766 |  |  | 12,495 |  |  | 10,995 |
Non-Mature communities/Other | 39,702 |  |  | 34,491 |  |  | 80,193 |  |  | 64,665 |
Total segment and consolidated NOI | 128,911 |  |  | 118,070 |  |  | 257,025 |  |  | 228,867 |
Reconciling items: |  |  |  |  |  |  |
Non-property income | 3,223 |  |  | 2,853 |  |  | 6,906 |  |  | 7,389 |
Property management | (5,244 | ) |  | (4,873 | ) |  | (10,451 | ) |  | (9,562 | )
Other operating expenses | (1,434 | ) |  | (1,585 | ) |  | (2,817 | ) |  | (3,089 | )
Depreciation and amortization | (84,474 | ) |  | (91,161 | ) |  | (178,721 | ) |  | (175,276 | )
Interest | (41,542 | ) |  | (37,844 | ) |  | (76,287 | ) |  | (78,561 | )
General and administrative | (13,738 | ) |  | (12,875 | ) |  | (23,117 | ) |  | (23,505 | )
Other depreciation and amortization | (1,017 | ) |  | (986 | ) |  | (1,935 | ) |  | (2,029 | )
Loss from unconsolidated entities | (2,412 | ) |  | (1,348 | ) |  | (5,103 | ) |  | (2,680 | )
Tax benefit of taxable REIT subsidiary, net | 2,027 |  |  | — |  |  | 24,903 |  |  | — |
Redeemable non-controlling interests in OP | (5,911 | ) |  | (221 | ) |  | (9,331 | ) |  | 611 |
Non-controlling interests | (43 | ) |  | (37 | ) |  | (95 | ) |  | (88 | )
Net gain on sale of depreciable property | 172,006 |  |  | 44,658 |  |  | 252,531 |  |  | 44,699 |
Net income/(loss) attributable to UDR, Inc. | $ | 150,352 |  |  | $ | 14,651 |  |  | $ | 233,508 |  |  | $ | (13,224 | )
The following table details the assets of UDR’s reportable segments as of June 30, 2012 and December 31, 2011 (dollars in thousands):
| June 30, 2012 |  | December 31, 2011
Reportable apartment home segment assets: |  |  |
Same communities: |  |  |
Western Region | $ | 2,274,841 |  |  | $ | 2,260,859 |
Mid-Atlantic Region | 1,346,780 |  |  | 1,340,679 |
Southeastern Region | 862,330 |  |  | 852,572 |
Southwestern Region | 411,699 |  |  | 409,751 |
Non-mature communities/Other | 2,865,595 |  |  | 3,210,610 |
Total segment assets | 7,761,245 |  |  | 8,074,471 |
Accumulated depreciation | (1,769,530 | ) |  | (1,831,727 | )
Total segment assets — net book value | 5,991,715 |  |  | 6,242,744 |
Reconciling items: |  |  |
Cash and cash equivalents | 184,112 |  |  | 12,503 |
Restricted cash | 24,580 |  |  | 24,634 |
Deferred financing costs, net | 28,579 |  |  | 30,068 |
Notes receivable | 39,409 |  |  | — |
Investment in unconsolidated joint ventures | 580,098 |  |  | 213,040 |
Other assets | 124,128 |  |  | 198,365 |
Total consolidated assets | $ | 6,972,621 |  |  | $ | 6,721,354 |
Capital expenditures related to our same communities totaled $15.1 million and $24.5 million and $10.3 million and $17.2 million for the three and six months ended June 30, 2012 and 2011, respectively. Capital expenditures related to our non-mature/other communities totaled $2.2 million and $5.1 million and $3.4 million and $5.4 million for the three and six months ended June 30, 2012 and 2011, respectively. Markets included in the above geographic segments are as follows:
i. | Western — Orange County, San Francisco, Seattle, Monterey Peninsula, Los Angeles, San Diego, Inland Empire, Sacramento, and Portland
ii. | Mid-Atlantic — Boston, Metropolitan DC, Richmond, Baltimore, Norfolk, and Other Mid-Atlantic
iii. | Southeastern — Tampa, Orlando, Nashville, and Other Florida
iv. | Southwestern — Dallas and Austin

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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