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REPORTABLE SEGMENTS | 6 Months Ended
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Jun. 30, 2021
REPORTABLE SEGMENTS |
REPORTABLE SEGMENTS | 14. 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 3.0% of property revenue, and land rent. Property management expense covers costs directly related to consolidated property operations, inclusive of corporate management, regional supervision, accounting and other costs. 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 April 1, 2020 (for quarter-to-date comparison) and January 1, 2020 (for year-to-date comparison) and held as of June 30, 2021. 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 period, there is no plan to conduct substantial redevelopment activities, and the community is not classified as 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 three and six months ended June 30, 2021 and 2020. ​ The following is a description of the principal streams from which the Company generates its revenue: Lease Revenue ​ Lease revenue related to leases is recognized on an accrual basis when due from residents or tenants in accordance with ASC 842, Leases. Rental payments are generally due on a monthly basis and recognized on a straight-line basis over the noncancellable lease term because collection of the lease payments was probable at lease commencement, inclusive of any periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option. In addition, in circumstances where a lease incentive is provided to tenants, the incentive is recognized as a reduction of lease revenue on a straight-line basis over the lease term. ​ Lease revenue also includes all pass-through revenue from retail and residential leases and common area maintenance reimbursements from retail leases. These services represent non-lease components in a contract as the Company transfers a service to the lessee other than the right to use the underlying asset. The Company has elected the practical expedient under the leasing standard to not separate lease and non-lease components from its resident and retail lease contracts as the timing and pattern of revenue recognition for the non-lease component and related lease component are the same and the combined single lease component would be classified as an operating lease. ​ Other Revenue ​ Other revenue is generated by services provided by the Company to its retail and residential tenants and other unrelated third parties. Revenue is measured based on consideration specified in contracts with customers. The Company recognizes revenue when it satisfies a performance obligation by providing the services specified in a contract to the customer. These fees are generally recognized as earned. ​ Joint venture management and other fees ​ The Joint venture management and other fees revenue consists of management fees charged to our equity method joint ventures per the terms of contractual agreements and other fees. Joint venture fee revenue is recognized monthly as the management services are provided and the fees are earned or upon a transaction whereby the Company earns a fee. Joint venture management and other fees are not allocable to a specific reportable segment or segments. ​ The following table details rental income and NOI for UDR’s reportable segments for the three and six months ended June 30, 2021 and 2020, and reconciles NOI to Net income/(loss) attributable to UDR, Inc. on the Consolidated Statements of Operations (dollars in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Six Months Ended
​ | ​ | June 30, (a) | ​ | June 30, (b)
​ |  | 2021 |  | 2020 |  | 2021 |  | 2020
Reportable apartment home segment lease revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Same-Store Communities (a) | ​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
West Region | ​ | $ | 103,059 | ​ | $ | 107,901 | ​ | $ | 201,810 | ​ | $ | 217,747
Mid-Atlantic Region | ​ |  | 61,390 | ​ |  | 61,232 | ​ |  | 121,307 | ​ |  | 123,769
Northeast Region | ​ |  | 51,864 | ​ |  | 53,143 | ​ |  | 103,916 | ​ |  | 110,639
Southeast Region | ​ |  | 37,255 | ​ |  | 35,368 | ​ |  | 70,142 | ​ |  | 67,561
Southwest Region | ​ |  | 23,765 | ​ |  | 23,379 | ​ |  | 46,976 | ​ |  | 47,194
Non-Mature Communities/Other | ​ |  | 22,477 | ​ |  | 16,559 | ​ |  | 47,105 | ​ |  | 42,293
Total segment and consolidated lease revenue | ​ | $ | 299,810 | ​ | $ | 297,582 | ​ | $ | 591,256 | ​ | $ | 609,203
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Reportable apartment home segment other revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Same-Store Communities (a) | ​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
West Region | ​ | $ | 2,653 | ​ | $ | 2,978 | ​ | $ | 5,329 | ​ | $ | 5,879
Mid-Atlantic Region | ​ |  | 1,972 | ​ |  | 1,540 | ​ |  | 3,674 | ​ |  | 3,240
Northeast Region | ​ |  | 1,048 | ​ |  | 1,371 | ​ |  | 2,093 | ​ |  | 2,434
Southeast Region | ​ |  | 1,889 | ​ |  | 1,328 | ​ |  | 3,292 | ​ |  | 2,779
Southwest Region | ​ |  | 1,053 | ​ |  | 741 | ​ |  | 1,930 | ​ |  | 1,563
Non-Mature Communities/Other | ​ |  | 691 | ​ |  | 442 | ​ |  | 1,368 | ​ |  | 977
Total segment and consolidated other revenue | ​ | $ | 9,306 | ​ | $ | 8,400 | ​ | $ | 17,686 | ​ | $ | 16,872
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total reportable apartment home segment rental income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Same-Store Communities (a) | ​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
West Region | ​ | $ | 105,712 | ​ | $ | 110,879 | ​ | $ | 207,139 | ​ | $ | 223,626
Mid-Atlantic Region | ​ |  | 63,362 | ​ |  | 62,772 | ​ |  | 124,981 | ​ |  | 127,009
Northeast Region | ​ |  | 52,912 | ​ |  | 54,514 | ​ |  | 106,009 | ​ |  | 113,073
Southeast Region | ​ |  | 39,144 | ​ |  | 36,696 | ​ |  | 73,434 | ​ |  | 70,340
Southwest Region | ​ |  | 24,818 | ​ |  | 24,120 | ​ |  | 48,906 | ​ |  | 48,757
Non-Mature Communities/Other | ​ |  | 23,168 | ​ |  | 17,001 | ​ |  | 48,473 | ​ |  | 43,270
Total segment and consolidated rental income | ​ | $ | 309,116 | ​ | $ | 305,982 | ​ | $ | 608,942 | ​ | $ | 626,075
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Reportable apartment home segment NOI | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Same-Store Communities (a) | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
West Region | ​ | $ | 77,120 | ​ | $ | 83,112 | ​ | $ | 150,931 | ​ | $ | 168,229
Mid-Atlantic Region | ​ |  | 43,733 | ​ |  | 43,929 | ​ |  | 86,135 | ​ |  | 89,245
Northeast Region | ​ |  | 34,227 | ​ |  | 37,186 | ​ |  | 67,570 | ​ |  | 77,509
Southeast Region | ​ |  | 26,297 | ​ |  | 24,265 | ​ |  | 49,625 | ​ |  | 47,986
Southwest Region | ​ |  | 15,312 | ​ |  | 14,537 | ​ |  | 30,147 | ​ |  | 29,915
Non-Mature Communities/Other | ​ |  | 11,947 | ​ |  | 9,224 | ​ |  | 25,286 | ​ |  | 24,834
Total segment and consolidated NOI | ​ |  | 208,636 | ​ |  | 212,253 | ​ |  | 409,694 | ​ |  | 437,718
Reconciling items: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Joint venture management and other fees | ​ |  | 2,232 | ​ |  | 1,274 | ​ |  | 3,847 | ​ |  | 2,662
Property management | ​ |  | (9,273) | ​ |  | (8,797) | ​ |  | (18,268) | ​ |  | (18,000)
Other operating expenses | ​ |  | (4,373) | ​ |  | (6,100) | ​ |  | (8,808) | ​ |  | (11,066)
Real estate depreciation and amortization | ​ |  | (146,169) | ​ |  | (155,056) | ​ |  | (290,257) | ​ |  | (310,532)
General and administrative | ​ |  | (15,127) | ​ |  | (10,971) | ​ |  | (27,863) | ​ |  | (25,949)
Casualty-related (charges)/recoveries, net | ​ |  | 2,463 | ​ |  | (102) | ​ |  | (3,114) | ​ |  | (1,353)
Other depreciation and amortization | ​ |  | (2,602) | ​ |  | (2,027) | ​ |  | (5,203) | ​ |  | (4,052)
Gain/(loss) on sale of real estate owned | ​ | ​ | — | ​ | ​ | 61,303 | ​ | ​ | 50,829 | ​ | ​ | 61,303
Income/(loss) from unconsolidated entities | ​ |  | 9,751 | ​ |  | 8,021 | ​ |  | 14,673 | ​ |  | 11,388
Interest expense | ​ |  | (35,404) | ​ |  | (38,597) | ​ |  | (113,560) | ​ |  | (77,914)
Interest income and other income/(expense), net | ​ |  | 2,536 | ​ |  | 2,421 | ​ |  | 4,593 | ​ |  | 5,121
Tax (provision)/benefit, net | ​ |  | (135) | ​ |  | (1,526) | ​ |  | (754) | ​ |  | (1,690)
Net (income)/loss attributable to redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership | ​ |  | (807) | ​ |  | (4,291) | ​ |  | (961) | ​ |  | (4,604)
Net (income)/loss attributable to noncontrolling interests | ​ |  | (8) | ​ |  | (34) | ​ |  | (24) | ​ |  | (40)
Net income/(loss) attributable to UDR, Inc. | ​ | $ | 11,720 | ​ | $ | 57,771 | ​ | $ | 14,824 | ​ | $ | 62,992
(a) | Same-Store Community population consisted of 45,974 apartment homes.
(b) | Same-Store Community population consisted of 45,404 apartment homes.
​ The following table details the assets of UDR’s reportable segments as of June 30, 2021 and December 31, 2020 (dollars in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, |  | December 31,
​ | ​ | 2021 | ​ | 2020
Reportable apartment home segment assets: |  | ​ |  |  | ​ |
Same-Store Communities (a): |  | ​ |  |  | ​ |
West Region | ​ | $ | 4,334,493 | ​ | $ | 4,316,098
Mid-Atlantic Region | ​ |  | 2,710,788 | ​ |  | 2,698,049
Northeast Region | ​ |  | 2,911,914 | ​ |  | 2,900,017
Southeast Region | ​ |  | 1,069,988 | ​ |  | 1,059,771
Southwest Region | ​ |  | 896,420 | ​ |  | 897,505
Non-Mature Communities/Other | ​ |  | 1,688,921 | ​ |  | 1,200,032
Total segment assets | ​ |  | 13,612,524 | ​ |  | 13,071,472
Accumulated depreciation | ​ |  | (4,871,506) | ​ |  | (4,605,366)
Total segment assets — net book value | ​ |  | 8,741,018 | ​ |  | 8,466,106
Reconciling items: | ​ |  |  | ​ |  |
Cash and cash equivalents | ​ |  | 3,370 | ​ |  | 1,409
Restricted cash | ​ |  | 32,700 | ​ |  | 22,762
Notes receivable, net | ​ |  | 139,047 | ​ |  | 157,992
Investment in and advances to unconsolidated joint ventures, net | ​ |  | 619,172 | ​ |  | 600,233
Operating lease right-of-use assets | ​ | ​ | 199,206 | ​ | ​ | 200,913
Other assets | ​ |  | 184,758 | ​ |  | 188,118
Total consolidated assets | ​ | $ | 9,919,271 | ​ | $ | 9,637,533
(a) | Same-Store Community population consisted of 45,974 apartment homes.
​ Markets included in the above geographic segments are as follows:
| i. | West Region — Orange County, San Francisco, Seattle, Monterey Peninsula, Los Angeles, Other Southern California and Portland
| ii. | Mid-Atlantic Region — Metropolitan D.C., Baltimore and Richmond
| iii. | Northeast Region — Boston, New York and Philadelphia
| iv. | Southeast Region — Tampa, Orlando, Nashville and Other Florida
| v. | Southwest Region — Dallas, Austin and Denver

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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