SECURED AND UNSECURED DEBT

The following is a summary of our secured and unsecured debt at June 30, 2015 and December 31, 2014 (dollars in thousands):



					Six Months Ended
	Principal Outstanding				June 30, 2015
	June 30, 2015		December 31, 2014		Weighted Average Interest Rate		Weighted Average Years to Maturity	Number of Communities Encumbered
Secured Debt:
Fixed Rate Debt
Mortgage notes payable (a)	$	408,736	$	401,210	5.50	%	1.1	7
Fannie Mae credit facilities (b)	566,288		568,086		5.12	%	3.5	21
Total fixed rate secured debt	975,024		969,296		5.28	%	2.5	28
Variable Rate Debt
Mortgage notes payable	31,337		31,337		1.94	%	1.6	1
Tax-exempt secured notes payable (c)	94,700		94,700		0.84	%	7.7	2
Fannie Mae credit facilities (b)	249,378		266,196		1.63	%	4.8	7
Total variable rate secured debt	375,415		392,233		1.45	%	5.3	10
Total Secured Debt	1,350,439		1,361,529		4.22	%	3.3	38

Unsecured Debt:
Commercial Banks
Borrowings outstanding under an unsecured credit facility due December 2017 (d) (f)	457,000		152,500		1.12	%	2.4
Senior Unsecured Notes
5.25% Medium-Term Notes due January 2015 (net of discounts of $0 and $6, respectively) (e)	—		325,169		—	%	—
5.25% Medium-Term Notes due January 2016	83,260		83,260		5.25	%	0.5
6.21% Term Notes due July 2016	12,609		—		6.21	%	1.0
4.25% Medium-Term Notes due June 2018 (net of discounts of $1,251 and $1,465, respectively) (f)	298,749		298,535		4.25	%	2.9
1.70% Term Notes due June 2018 (f)	215,000		215,000		1.70	%	2.9
1.53% Term Notes due June 2018 (f)	100,000		100,000		1.53	%	2.9
1.33% Term Notes due June 2018 (f)	35,000		35,000		1.33	%	2.9
3.70% Medium-Term Notes due October 2020 (net of discounts of $42 and $46, respectively) (f)	299,958		299,954		3.70	%	5.3
4.63% Medium-Term Notes due January 2022 (net of discounts of $2,344 and $2,523, respectively) (f)	397,656		397,477		4.63	%	6.5
3.75% Medium-Term Notes due July 2024 (net of discount of $938 and $990, respectively) (f)	299,062		299,010		3.75	%	9.0
8.50% Debentures due September 2024	15,644		15,644		8.50	%	9.2
Other	26		27		N/A		N/A
Total Unsecured Debt	2,213,964		2,221,576		3.20	%	4.6
Total Debt	$	3,564,403	$	3,583,105	3.58	%	4.1

Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. For purposes of classification of the above table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument. As of June 30, 2015, secured debt encumbered $2.2 billion or 26.6% of UDR’s total real estate owned based upon gross book value ($6.2 billion or 73.4% of UDR’s real estate owned based on gross book value is unencumbered).

(a) At June 30, 2015, fixed rate mortgage notes payable are generally due in monthly installments of principal and interest and mature at various dates from December 2015 through May 2019 and carry interest rates ranging from 3.43% to 6.16%.

The Company will from time to time acquire properties subject to fixed rate debt instruments. In those situations, the Company records the debt at its estimated fair value and amortizes any difference between the fair value and par to interest expense over the life of the underlying debt instrument. The Company had a reduction to interest expense based on the amortization of the fair market adjustment of debt assumed in the acquisition of properties of $1.3 million and $1.2 million during the three months ended June 30, 2015 and 2014, respectively, and $2.4 million and $2.5 million during the six months ended June 30, 2015 and 2014, respectively. The unamortized fair market adjustment was a net premium of $5.7 million and $6.7 million at June 30, 2015 and December 31, 2014, respectively.

(b) UDR has three secured credit facilities with Fannie Mae with an aggregate commitment of $815.7 million at June 30, 2015. The Fannie Mae credit facilities mature at various dates from May 2017 through July 2023 and bear interest at floating and fixed rates. At June 30, 2015, $566.3 million of the outstanding balance was fixed and had a weighted average interest rate of 5.12% and the remaining balance of $249.4 million had a weighted average variable interest rate of 1.63%.

Further information related to these credit facilities is as follows (dollars in thousands):



	June 30, 2015			December 31, 2014
Borrowings outstanding	$	815,666		$	834,282
Weighted average borrowings during the period ended	830,434			835,873
Maximum daily borrowings during the period ended	834,003			837,564
Weighted average interest rate during the period ended	4.0		%	4.1		%
Weighted average interest rate at the end of the period	4.1		%	4.0		%

(c) The variable rate mortgage notes payable that secure tax-exempt housing bond issues mature in August 2019 and March 2032. Interest on these notes is payable in monthly installments. The variable rate mortgage notes have interest rates of 0.84% and 0.85% as of June 30, 2015.

(d) As of June 30, 2015, the Company has a $900 million unsecured revolving credit facility that matures in December 2017. The credit facility has a six month extension option and contains an accordion feature that allows us to increase the facility to $1.45 billion. Based on the Company’s current credit rating, the credit facility carries an interest rate equal to LIBOR plus a spread of 100 basis points and a facility fee of 15 basis points.

The following is a summary of short-term bank borrowings under UDR’s revolving credit facility at June 30, 2015 and December 31, 2014 (dollars in thousands):



	June 30, 2015			December 31, 2014
Total revolving credit facility	$	900,000		$	900,000
Borrowings outstanding at end of period (1)	457,000			152,500
Weighted average daily borrowings during the period ended	402,514			291,761
Maximum daily borrowings during the period ended	539,100			625,000
Weighted average interest rate during the period ended	1.2		%	1.2		%
Interest rate at end of the period	1.1		%	1.1		%

(1) Excludes $2.3 million and $1.9 million of letters of credit at June 30, 2015 and December 31, 2014, respectively.

(e) Paid off at maturity with borrowings under the Company's $900 million unsecured revolving credit facility.

(f) The Operating Partnership is a guarantor of this debt.

The aggregate maturities, including amortizing principal payments of unsecured and secured debt, of total debt for the next five calendar years subsequent to June 30, 2015 are as follows (dollars in thousands):



Year	Total Fixed Secured Debt		Total Variable Secured Debt		Total Secured Debt		Total Unsecured Debt (a)		Total Debt
2015	$	191,363	$	—	$	191,363	$	79	$	191,442
2016	148,223		—		148,223		94,469		242,692
2017	177,882		96,337		274,219		457,000		731,219
2018	121,685		87,969		209,654		648,445		858,099
2019	245,871		67,700		313,571		—		313,571
Thereafter	90,000		123,409		213,409		1,013,971		1,227,380
Total	$	975,024	$	375,415	$	1,350,439	$	2,213,964	$	3,564,403

(a) With the exception of the 1.33% Term Notes due June 2018 and the revolving credit facility which carry a variable interest rate, all unsecured debt carries fixed interest rates.

We were in compliance with the covenants of our debt instruments at June 30, 2015.