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Reportable Segments (UNITED DOMINION REALTY, L.P.)
 12 Months Ended
Dec. 31, 2015
Entity Information [Line Items]  
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 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-Store Communities and Non-Mature Communities/Other:

•
Same-Store Communities represent those communities acquired, developed, and stabilized prior to January 1, 2014 and held as of December 31, 2015. 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 Communities/Other represent those communities that do not meet the criteria to be included in Same-Store Communities, including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed use properties.
Management evaluates the performance of each of our apartment communities on a Same-Store Community and Non-Mature Community/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 years ended December 31, 2015, 2014, and 2013.
The following table details rental income and NOI from continuing and discontinued operations for UDR’s reportable segments for the years ended December 31, 2015, 2014, and 2013, and reconciles NOI to Net income/(loss) attributable to UDR, Inc. in the Consolidated Statements of Operations (dollars in thousands):
 
Year Ended December 31,
 
2015
 
2014
 
2013
Reportable apartment home segment rental income
 
 
 
 
 
Same-Store Communities
 
 
 
 
 
West Region
$
255,346

 
$
236,175

 
$
214,324

Mid-Atlantic Region
157,158

 
154,491

 
150,489

Southeast Region
103,920

 
98,061

 
93,479

Northeast Region
86,048

 
81,500

 
77,299

Southwest Region
57,670

 
54,810

 
52,302

Non-Mature Communities/Other
211,786

 
180,112

 
167,743

Total segment and consolidated rental income
$
871,928

 
$
805,149

 
$
755,636

 
 
 
 
 
 
Reportable apartment home segment NOI
 
 
 
 
 
Same-Store Communities
 
 
 
 
 
West Region
$
190,682

 
$
171,973

 
$
152,108

Mid-Atlantic Region
108,324

 
107,592

 
105,300

Southeast Region
69,820

 
65,053

 
61,087

Northeast Region
64,539

 
61,315

 
57,350

Southwest Region
35,767

 
33,725

 
31,925

Non-Mature Communities/Other
144,737

 
116,663

 
106,271

Total segment and consolidated NOI
613,869

 
556,321

 
514,041

Reconciling items:
 
 
 
 
 
Joint venture management and other fees
22,710

 
13,044

 
12,442

Property management
(23,978
)
 
(22,142
)
 
(20,780
)
Other operating expenses
(9,708
)
 
(8,271
)
 
(7,136
)
Real estate depreciation and amortization
(374,598
)
 
(358,154
)
 
(341,490
)
General and administrative
(59,690
)
 
(47,800
)
 
(42,238
)
Casualty-related recoveries/(charges), net
(2,335
)
 
(541
)
 
12,253

Other depreciation and amortization
(6,679
)
 
(5,775
)
 
(6,741
)
Income/(loss) from unconsolidated entities
62,329

 
(7,006
)
 
(415
)
Interest expense
(121,875
)
 
(130,454
)
 
(126,083
)
Interest income and other income/(expense), net
1,551

 
11,837

 
4,681

Tax benefit/(provision), net
3,886

 
15,136

 
7,299

Gain/(loss) on sale of real estate owned, net of tax
251,677

 
143,647

 
40,449

Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership
(16,773
)
 
(5,511
)
 
(1,530
)
Net (income)/loss attributable to noncontrolling interests
(3
)
 
3

 
60

Net income/(loss) attributable to UDR, Inc.
$
340,383

 
$
154,334

 
$
44,812


The following table details the assets of UDR’s reportable segments as of December 31, 2015 and 2014 (dollars in thousands):
 
December 31,
2015
 
December 31,
2014
Reportable apartment home segment assets:
 
 
 
Same-Store communities:
 
 
 
West Region
$
2,371,615

 
$
2,336,271

Mid-Atlantic Region
1,423,888

 
1,440,561

Southeast Region
730,060

 
727,933

Northeast Region
1,109,354

 
1,076,656

Southwest Region
450,305

 
440,587

Non-mature Communities/Other
3,105,054

 
2,361,251

Total segment assets
9,190,276

 
8,383,259

Accumulated depreciation
(2,646,874
)
 
(2,434,772
)
Total segment assets — net book value
6,543,402

 
5,948,487

Reconciling items:
 
 
 
Cash and cash equivalents
6,742

 
15,224

Restricted cash
20,798

 
22,340

Notes receivable, net
16,694

 
14,369

Investment in and advances to unconsolidated joint ventures, net
938,906

 
718,226

Other assets
137,302

 
110,082

Total consolidated assets
$
7,663,844

 
$
6,828,728


Capital expenditures related to our Same-Store Communities totaled $72.3 million, $52.5 million, and $43.0 million for the years ended December 31, 2015, 2014, and 2013, respectively. Capital expenditures related to our Non-Mature Communities/Other totaled $12.9 million, $10.9 million, and $12.8 million for the years ended December 31, 2015, 2014, and 2013, respectively.
Markets included in the above geographic segments are as follows:
i.
West Region — Orange County, San Francisco, Seattle, Los Angeles, Monterey Peninsula, Other Southern California, and Portland
ii.
Mid-Atlantic Region — Metropolitan D.C., Baltimore, and Richmond
iii.
Southeast Region — Orlando, Nashville, Tampa and Other Florida
iv.
Northeast Region — New York and Boston
v.
Southwest Region — Dallas and Austin
United Dominion Reality L.P.  
Entity Information [Line Items]  
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. The Operating Partnership has the same chief operating decision maker as that of its parent, the General Partner. The chief operating decision maker consists of several members of UDR’s executive management team who use several generally accepted industry financial measures to assess the performance of the business for our reportable operating segments.
The Operating Partnership owns and operates multifamily apartment communities throughout the United States that generate rental and other property related income through the leasing of apartment homes to a diverse base of tenants. The primary financial measures of the Operating Partnership’s apartment communities are rental income and NOI, and are included in the chief operating decision maker’s assessment of UDR’s performance on a consolidated basis. Rental income represents gross market rent less adjustments for concessions, vacancy loss and bad debt. NOI is defined as total revenues less direct property operating 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. The chief operating decision maker of the General Partner utilizes NOI as the key measure of segment profit or loss.
The Operating Partnership’s two reportable segments are Same-Store Communities and Non-Mature/Other communities:

•
Same-Store Communities represent those communities acquired, developed, and stabilized prior to January 1, 2014 and held as of December 31, 2015. 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 communities are 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 Communities/Other represent those communities that do not meet the criteria to be included in Same-Store Communities, including, but not limited to, recently acquired, developed and redeveloped communities, and the non-apartment components of mixed use properties.
Management of the General Partner evaluates the performance of each of the Operating Partnership's apartment communities on a Same-Store Community and Non-Mature Community/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 Operating Partnership’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 the Operating Partnership’s total revenues during the years ended December 31, 2015, 2014, and 2013.
The following table details rental income and NOI from continuing and discontinued operations for the Operating Partnership’s reportable segments for the years ended December 31, 2015, 2014, and 2013, and reconciles NOI to Net income/(loss) attributable to OP unitholders in the Consolidated Statements of Operations (dollars in thousands):
 
Year Ended December 31,
 
2015
 
2014
 
2013
Reportable apartment home segment rental income
 
 
 
 
 
Same-Store Communities
 
 
 
 
 
West Region
$
174,414

 
$
160,185

 
$
150,137

Mid-Atlantic Region
60,602

 
65,565

 
64,923

Southeast Region
44,981

 
42,568

 
40,730

Northeast Region
59,444

 
58,788

 
55,850

Southwest Region
20,963

 
26,580

 
25,614

Non-Mature Communities/Other
80,004

 
68,948

 
73,588

Total segment and consolidated rental income
$
440,408

 
$
422,634

 
$
410,842

Reportable apartment home segment NOI
 
 
 
 
 
Same-Store Communities
 
 
 
 
 
West Region
$
130,509

 
$
117,130

 
$
107,866

Mid-Atlantic Region
40,301

 
44,366

 
44,442

Southeast Region
30,106

 
28,111

 
26,590

Northeast Region
45,917

 
45,347

 
42,146

Southwest Region
13,176

 
16,821

 
16,057

Non-Mature Communities/Other
57,588

 
48,538

 
50,434

Total segment and consolidated NOI
317,597

 
300,313

 
287,535

Reconciling items:
 
 
 
 
 
Property management
(12,111
)
 
(11,622
)
 
(11,298
)
Other operating expenses
(5,923
)
 
(5,172
)
 
(5,728
)
Real estate depreciation and amortization
(169,784
)
 
(179,176
)
 
(181,302
)
General and administrative
(27,016
)
 
(28,541
)
 
(24,808
)
Casualty-related recoveries/(charges), net
(843
)
 
(541
)
 
8,083

Income/(loss) from unconsolidated entities
(4,659
)
 
—

 
—

Interest expense
(40,321
)
 
(41,717
)
 
(36,058
)
Gain/(loss) on sale of real estate owned, net of tax
158,123

 
63,635

 
41,518

Net income/(loss) attributable to noncontrolling interests
(1,762
)
 
(952
)
 
(4,566
)
Net income/(loss) attributable to OP unitholders
$
213,301

 
$
96,227

 
$
73,376


The following table details the assets of the Operating Partnership’s reportable segments as of December 31, 2015 and 2014 (dollars in thousands):
 
December 31,
2015
 
December 31, 2014
Reportable apartment home segment assets
 
 
 
Same-Store Communities
 
 
 
West Region
$
1,461,078

 
$
1,433,827

Mid-Atlantic Region
410,710

 
686,708

Southeast Region
321,787

 
316,788

Northeast Region
669,082

 
777,375

Southwest Region
—

 
228,997

Non-Mature Communities/Other
768,248

 
795,075

Total segment assets
3,630,905

 
4,238,770

Accumulated depreciation
(1,281,258
)
 
(1,403,303
)
Total segment assets - net book value
2,349,647

 
2,835,467

Reconciling items:
 
 
 
Cash and cash equivalents
3,103

 
502

Restricted cash
11,344

 
13,811

Investment in unconsolidated entities
166,186

 
—

Other assets
24,528

 
24,029

Total consolidated assets
$
2,554,808

 
$
2,873,809


Capital expenditures related to the Operating Partnership’s Same-Store Communities totaled $40.0 million and $30.6 million for the years ended December 31, 2015 and 2014, respectively. Capital expenditures related to the Operating Partnership’s Non-Mature Communities/Other totaled $5.0 million and $3.2 million for the years ended December 31, 2015 and 2014, respectively.
Markets included in the above geographic segments are as follows:
i.
West Region — Orange County, San Francisco, Seattle, Los Angeles, Monterey Peninsula, Other Southern California, and Portland
ii.
Mid-Atlantic Region — Metropolitan, D.C. and Baltimore
iii.
Northeast Region — New York and Boston
iv.
Southeast Region — Nashville, Tampa, and Other Florida
v.
Southwest Region — Dallas and Austin
In October 2015, all communities within the Southwest Region were contributed to the DownREIT Partnership and deconsolidated. See Note 5, Unconsolidated Entities.