UDR Second Quarter 2011 Earnings Supplement

Transcription

1 Second Quarter 2011 Earnings Supplement Clockwise from left: Rivergate, 21 Chelsea Chelsea 21 Manhattan; View 14 Washington, D.C., Inc. (NYSE: ), has a demonstrated history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted US markets. CFO: David Messenger , Inc Shea Center Drive, Suite 200 Highlands Ranch, CO IR Contact: H. Andrew Cantor

2 Second Quarter 2011 Earnings Supplement 2Q 2011 Earnings Press Release... Pages 1-8 Company Consolidated Statements of Operations... Attachment 1 Funds From Operations (FFO)... Attachment 2 Consolidated Balance Sheets... Attachment 3 Selected Financial Information Coverage Ratios, Encumbered/Unencumbered Assets Summary, Securities Ratings, Market Cap and Common Stock Equivalents... Attachment 4(A) Debt Structure and Cash and Available Credit Capacity... Attachment 4(B) Debt Maturities Schedules...Attachment 4(C) Operations Income from Discontinued Operations... Attachment 5 Revenue, Expense, NOI, Operating Margin, Quarterly Trends Comparison... Attachment 6 Portfolio Overview... Attachment 7(A) Portfolio Overview Total Income per Occupied Home... Attachment 7(B) Submarket Current Quarter vs. Prior Year Quarter Occupancy, and Total Income per Occupied Home Information... Attachment 8(A) Current Quarter vs. Prior Year Quarter Revenue, Expense, and NOI Information... Attachment 8(B) Current Quarter vs. Last Quarter Occupancy, and Total Income per Occupied Home Information...Attachment 8(C) Current Quarter vs. Last Quarter Revenue, Expense and NOI Information...Attachment 8(D) Current Year-to-Date vs. Prior Year-to-Date Occupancy, and Total Income per Occupied Home Information... Attachment 8(E) Current Year-to-Date vs. Prior Year-to-Date Revenue, Expense, and NOI Information... Attachment 8(F) Development, Redevelopment, Acquisitions and Dispositions Completed Development and Redevelopment Summary... Attachment 9 Active Development and Redevelopment Summary... Attachment 10 Joint Venture and Land Summary... Attachment 11 Summary of Apartment Community Acquisitions and Dispositions... Attachment 12 Capital Expenditures and Repair & Maintenance Capital Expenditures and Repair & Maintenance Summary... Attachment 13 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, 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, expectations concerning the Vitruvian Park SM development, expectations concerning the joint venture with MetLife, expectations that automation 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 Securities and Exchange Commission 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.

3 Press Release Contact: H. Andrew Cantor Phone: ANNOUNCES SECOND QUARTER 2011 RESULTS ~15% Increase in FFO-Core per Diluted Share~ DENVER, CO (August 1, 2011), Inc. (the "Company") (NYSE: ), a leading multifamily real estate investment trust, today announced its second quarter 2011 results. The Company generated Funds from Operations (FFO) of $63.6 million or $0.31 per diluted share, for the quarter ended, as compared to $45.7 million, or $0.27 per diluted share, in the second quarter of The second quarter results include a one-time, $0.008 per diluted share, gain on the sale of TRS property and a JV financing fee, offset by one-time charges of $0.014 for acquisition-related and severance costs. Excluding these one-time charges, FFO-Core would have been $0.32 per diluted share. Please see the reconciliation below for further detail. Q Q YTD 2011 YTD 2010 FFO- Core per diluted share $0.32 $0.28 $0.62 $0.56 Acquisition-related costs (0.010) - (0.014) - JV financing fee Severance charges (0.004) - (0.004) - Gain on sale of TRS property Storm-related expenses - (0.004) - (0.004) Costs associated with debt extinguishment - (0.006) (0.021) (0.006) Gain on sale of marketable securities FFO- Reported per diluted share $0.31 $0.27 $0.61 $0.55 A reconciliation of FFO to GAAP Net Income can be found on Attachment 2 of the Company s second quarter 2011 Supplemental Financial Information.

4 We ve made great progress this year as we have announced nearly $1.2 billion in acquisitions, $375 million in developments and have raised $930 million in equity, said Tom Toomey, s president and CEO. Mr. Toomey continued, Clearly we believe this is the right time to grow our company as we have made a concerted effort to expand our operations in core markets such as New York, Boston, San Francisco and Washington, D.C. the substantial value creation opportunities we see from the newly announced acquisitions and development projects position us well for future growth. Operations Same-store revenue increased 3.6 percent year-over-year while net operating income (NOI) increased 5.1 percent for the second quarter Same-store physical occupancy decreased 10 basis points to 95.7 percent year-over-year. Same-store expenses increased 70 basis points driven by higher utility and insurance costs, partially offset by a decrease in real estate taxes. The rate of turnover decreased to an annualized rate of 55 percent from 56 percent in the second quarter of Bad debt expense as a percentage of revenues for the second quarter was flat at 40 basis points. Summary Same-Store Results Second Quarter 2011 versus Second Quarter 2010 Region Revenue Growth/ Decline Expense Growth/ Decline NOI Growth/ Decline % of Same- Store Portfolio¹ Same-Store Occupancy 2 Number of Same-Store Homes 3 Western 3.6% 0.2% 5.1% 40.5% 95.4% 13,364 Mid-Atlantic 3.9% 3.6% 4.1% 28.5% 96.6% 10,418 Southeastern 3.1% 1.5% 4.2% 21.1% 95.1% 12,272 Southwestern 3.4% -5.2% 9.5% 9.8% 95.9% 5,571 Total 3.6% 0.7% 5.1% 100.0% 95.7% 41,625 ¹ Based on QTD 2011 NOI. 2 Average same-store occupancy for the quarter. 3 During the second quarter, 41,625 apartment homes, or approximately 86 percent of 48,556 total apartment homes, were classified as same-store. The Company defines same-store as all multifamily communities owned and stabilized for at least one year as of the beginning of the most recent quarter. Sequentially, same-store NOI increased by 3.4 percent driven by increased revenues of 1.6 percent and a 1.7 percent decrease in same-store expenses. 2

5 For the six months ended, the Company s same-store revenue increased 3.0 percent as compared to the prior year while expenses increased 1.5 percent resulting in a same-store NOI increase of 3.9 percent as compared to the prior year period in Yearover-year occupancy decreased by 10 basis points to 95.6 percent. Summary Same-Store Results YTD 2011 versus YTD 2010 Region Revenue Growth/ Decline Expense Growth/ Decline NOI Growth/ Decline % of Same- Store Portfolio¹ Same-Store Occupancy 2 Number of Same-Store Homes 3 Western 2.9% 1.3% 3.7% 40.0% 95.2% 13,198 Mid-Atlantic 3.9% 2.2% 4.7% 28.9% 96.5% 10,418 Southeastern 2.3% 1.8% 2.7% 21.2% 95.2% 11,901 Southwestern 2.7% -0.2% 4.7% 9.9% 95.9% 5,571 Total 3.0% 1.5% 3.9% 100.0% 95.6% 41,088 ¹ Based on YTD 2011 NOI. 2 Average same-store occupancy for YTD During the six months ended, 41,088 apartment homes, or approximately 85 percent of 48,556 total apartment homes, were classified as same-store. The Company defines same-store as all multifamily communities owned and stabilized for at least one year as of the beginning of the most recent year. Technology Platform Improving the Company s operational efficiency, while increasing resident satisfaction, are the compelling factors for our continued investment in technology. The Company s technology platform continues to gain acceptance and recognition from our residents as shown by the following increasing utilization rates: Established Technology Initiatives: June 2011 June 2010 December 2010 Resident payments received via ACH 78% 74% 79% Service requests entered through My.com 80% 77% 79% Move-ins initiated via an internet source 61% 65% 63% New Technology Initiatives: Renewals completed electronically 84% 3% 81% Acquisition Activity The Company completed the acquisition of 10 Hanover Square, a 493-home apartment community in New York City s Financial District for $259.8 million. The 23-story high-rise also contains 41,650 square feet of fully leased commercial space. Additional details related to the transaction can be found in the March 1, 2011 and April 1, 2011 press releases on the Company s website at 3

6 Additionally, the Company completed the acquisition of View 14, a 185-home apartment community located in the U Street Corridor of Washington, D.C. for $106 million. The luxury 9- story high-rise also contains 32,113 square feet of commercial space and a 148-space parking garage. Additional details related to the transaction can be found in the July 12, 2011 press release on the Company s website at Development Activity During the second quarter of 2011, the Company commenced the development of 839 homes in three communities for $225 million. The developments include: Los Alisos, an $87 million, 320-home community located in Mission Viejo, CA. The convenient location provides residents with excellent access to freeways and job centers across Orange County and is located directly adjacent to the Mission Foothill Marketplace, an 110,000-squarefoot retail center. 13 th & Market, a $76 million, pre-sale joint venture to develop a 263-home community at 13 th & Market in the East Village neighborhood of San Diego, CA. The new community will be located directly across the street from the planned 4-acre East Village Green public park, within walking distance to PETCO Park and only three blocks from the /MetLife Strata community (163 homes). Domain College Park, a $62 million, pre-sale joint venture to develop a 256-home community that will be located immediately adjacent to The Robert H. Smith School of Business at the University of Maryland in College Park, MD. The land was purchased by the pre-sale joint venture from the /MetLife joint venture and is expected to be the only privately-owned, market-rate community located directly adjacent to the University of Maryland campus. Disposition Activity During the second quarter, the Company sold Mustang Park, a 289-home community located in Carrollton, TX for $31 million. At the time of the disposition, the community was 96% occupied with an average monthly income per occupied home of $1,000. Asset Exchange: The Company completed a $500 million asset exchange with AvalonBay Communities, Inc. exchanged six communities containing 1,418 apartment homes in Southern California for two communities containing 833 apartment homes located in the Boston metro area and one community containing 227 apartment homes located in downtown San Francisco. Additional details related to the exchange can be found in the April 6, 2011 press release on the Company s website at Capital Markets Activity In the second quarter of 2011, the Company raised approximately $231.2 million of equity through the sale of approximately 9.4 million shares at a weighted average net price of $24.51 per share under its At the Market equity offering program. 4

7 In conjunction with the acquisition of 10 Hanover Square in Manhattan, the Company issued 2.6 million operating partnership units for $64 million. On May 18, 2011, the Company priced a seven year $300 million offering of 4.25 percent senior unsecured notes under its existing shelf registration. The notes will mature on June 1, During the second quarter, the Company repurchased 141,200 shares of Series G Cumulative Redeemable Preferred Shares at an average price per share of $ Balance Sheet At, had $882 million in availability through a combination of cash and undrawn capacity on its credit facilities, giving the Company ample flexibility to meet its capital needs for debt maturities and development activities through s total indebtedness at was $3.7 billion. The Company ended the second quarter with fixed-rate debt representing 83 percent of its total debt, a total blended interest rate of 4.4 percent and a weighted average maturity of 4.5 years. s fixed charge coverage ratio (adjusted for non-recurring items) was 2.4 times. Post Quarter Activity Acquisitions: On July 19, 2011, the Company completed the acquisition of Rivergate, a 706-home apartment community located in the Murray Hill neighborhood of Manhattan for $443 million. The 35-story high-rise also contains 24,315 square feet of fully-leased commercial space and a 125-space parking garage. The acquisition of 21 Chelsea, a 210-home community located in the Chelsea neighborhood of Manhattan, is expected to close in the third quarter of 2011 for $138 million. The 14-story highrise also contains 1,600 square feet of fully-leased retail space and a 152-space parking garage. Development: The Company expects to close in the third quarter of 2011 on the acquisition of the land for the development of Village at Bella Terra, a $150 million, 467-home community located in Huntington Beach, CA. Additional details can be found in the July 12, 2011 press release on the Company s website at Including the Company s interest in its unconsolidated development joint ventures and Village at Bella Terra, the Company has 2,476 homes under development for a total estimated cost of $757 million. Capital Markets Activity: The Company completed a public offering of 20.7 million shares of common stock, including the underwriter s overallotment option, at a gross price of $25.00 per share. Proceeds of approximately $496.3 million, after underwriting discounts, commissions and offering expenses, 5

8 were used to fund potential and recent acquisitions, for working capital and for general corporate purposes. In the third quarter, previous to the July 13, 2011 public offering, the Company raised approximately $42.9 million of equity through the sale of approximately 1.7 million shares at a weighted average net price of $24.90 per share under its At the Market equity offering program Guidance As previously announced on July 11, 2011, the Company updated its full-year same-store, FFO, disposition, and acquisition guidance as follows: FFO per diluted share Same-store operations (95% occupancy): Revenue Expenses Net operating income (NOI) Original Range As of Feb. 7, 2011 Revised Range As of July 11, 2011 $ $1.25 $ $ % - 4.5% 4.0% - 4.5% 2.0% - 3.0% 2.0% - 2.5% 4.0% - 6.0% 5.0% - 6.0% Portfolio activity (M): Original Range Revised Range Completed (1,2,3) Remaining (4) Acquisitions $500 $1,200 - $1,500 $1,200 $75 - $300 Dispositions $0 $500 - $600 $267 $233 - $333 Development starts $0 $450 - $600 $375 $75 - $225 Capital markets (M): Original Range Revised Range Completed (1) Remaining (4) Equity $300 - $325 $450 - $950 $929 $0 - $21 Debt $495 - $520 $300 - $500 $300 $0 - $200 (1) As of August 1, (2) Completed acquisitions and dispositions include the previously announced $500 million asset exchange. (3) Completed acquisitions include 21 Chelsea and completed development starts include Village at Bella Terra. (4) Remaining consists of the revised range less completed. All guidance is based on current expectations of future economic conditions and the judgment of the Company's management team. The following reconciles from forecasted FFO per share to GAAP Net Loss per share: Low High Forecasted 2011 FFO guidance per diluted share $1.25 $1.30 Conversion to GAAP share count (0.08) (0.08) Depreciation (1.76) (1.76) Non-controlling interests Preferred dividends (0.02) (0.02) Gains on sale of depreciable property Forecasted GAAP net loss per diluted share (0.39) (0.34) 6

9 Supplemental Information The Company offers Supplemental Financial Information that provides details on the financial position and operating results of the Company which is available on the Company's website at Conference Call and Webcast Information will host a webcast and conference call at 11:00 a.m. EDT on August 1, 2011 to discuss second quarter results. A webcast will be available on 's website at To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. To participate in the teleconference dial for domestic and for international and provide the following conference ID number: A replay of the conference call will be available through September 1, 2011, by dialing for domestic and for international and entering the confirmation number, , when prompted for the pass code. A replay of the call will be available for 90 days on 's website at Full Text of the Earnings Report and Supplemental Financial Information Internet -- The full text of the earnings report and Supplemental Financial Information will be available on the Company s website at Mail -- For those without Internet access, the second quarter 2011 earnings report and Supplemental Financial Information will be available by mail or fax, on request. To receive a copy, please call Investor Relations at

10 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 forwardlooking statement, due to a number of factors, which include, but are not limited to, 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, expectations concerning the Vitruvian Park SM development, expectations concerning the joint venture with MetLife, expectations that automation 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 Securities and Exchange Commission 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. This release and these forward-looking statements include s analysis and conclusions and reflect s judgment as of the date of these materials. assumes no obligation to revise or update to reflect future events or circumstances. About, Inc., Inc. (NYSE:), an S&P 400 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, owned or had an ownership position in 60,386 apartment homes including 1,939 homes under development. For over 39 years, has delivered long-term value to shareholders, the best standard of service to residents, and the highest quality experience for associates. Additional information can be found on the Company's website at 8

11 Attachment 1 Consolidated Statements of Operations Three Months Ended Six Months Ended June 30, June 30, In thousands, except per share amounts Rental income $ 176,767 $ 146,647 $ 340,462 $ 290,972 Rental expenses: Real estate taxes and insurance 20,515 18,327 41,355 37,011 Personnel 15,439 13,518 30,168 26,489 Utilities 9,122 7,652 18,133 16,004 Repair and maintenance 9,594 8,177 18,560 15,737 Administrative and marketing 4,317 3,824 8,270 7,521 Property management 4,861 4,033 9,363 8,002 Other operating expenses 1,544 1,457 3,001 2,942 65,392 56, , ,706 Non-property income: Loss from unconsolidated entities (1,348) (1,185) (2,680) (1,922) Gain on sale of marketable securities - - 3,123 - Interest and other income (1) 2,855 2,056 4,267 3,527 1, ,710 1,605 Other expenses: Real estate depreciation and amortization 91,107 70, , ,993 Interest 37,381 35,218 72,969 70,346 Amortization of convertible debt premium ,895 Other debt charges (2) 40 1,030 4,059 1,030 Total interest 37,780 37,176 77,746 73,271 Insurance-related expenses Acquisition-related costs 2,074-2,724 - Severance charges General and administrative 9,999 9,572 19,998 19,212 Other depreciation and amortization 986 1,308 2,029 2, , , , ,728 Loss from continuing operations (29,909) (28,501) (59,671) (55,857) Income from discontinued operations 44, ,924 3,191 Consolidated net income/(loss) 14,909 (27,640) (13,747) (52,666) Net (income)/loss attributable to non-controlling interests (258) 1, ,989 Net Income/(loss) attributable to, Inc 14,651 (26,621) (13,224) (50,677) Distributions to preferred stockholders - Series E (Convertible) (931) (931) (1,862) (1,862) Distributions to preferred stockholders - Series G (1,396) (1,441) (2,833) (2,889) (Premium)/discount on preferred stock repurchases, net (175) 25 (175) 25 Net income/(loss) attributable to common stockholders $ 12,149 $ (28,968) $ (18,094) $ (55,403) Earnings per weighted average common share - basic and diluted: Loss from continuing operations available to common stockholders ($0.17) ($0.19) ($0.34) ($0.37) Income from discontinued operations $0.23 $0.01 $0.24 $0.02 Net Income/(loss) attributable to common stockholders $0.06 ($0.18) ($0.10) ($0.35) Common distributions declared per share $0.200 $0.180 $0.385 $0.360 Weighted average number of common shares outstanding - basic and diluted 190, , , ,522 (1) (2) Includes $2.7 million and $0.7 million of management fees from joint ventures during the three months ended and 2010 and $3.9 million and $1.1 million during the six months ended and Write-off of deferred financing costs on early debt extinguishment, including $599 write-off of convertible debt premium for the three and six months ended June 30, 2010.

12 Attachment 2 Funds From Operations Three Months Ended Six Months Ended June 30, June 30, In thousands, except per share amounts Net income/(loss) attributable to, Inc. $ 14,651 $ (26,621) $ (13,224) $ (50,677) Distributions to preferred stockholders (2,327) (2,372) (4,695) (4,751) Real estate depreciation and amortization, including discontinued operations 91,161 73, , ,933 Non-controlling interest 258 (1,019) (523) (1,989) Real estate depreciation and amortization on unconsolidated joint ventures 2,844 1,151 5,692 2,160 Net gain on the sale of depreciable property in discontinued operations, excluding RE 3 (43,767) (162) (43,808) (121) (Premium)/discount on preferred stock repurchases, net (175) 25 (175) 25 Funds from operations ("FFO") - basic $ 62,645 $ 44,728 $ 118,543 $ 90,580 Distribution to preferred stockholders - Series E (Convertible) ,862 1,862 Funds from operations - diluted $ 63,576 $ 45,659 $ 120,405 $ 92,442 FFO per common share - basic $ 0.32 $ 0.27 $ 0.61 $ 0.55 FFO per common share - diluted $ 0.31 $ 0.27 $ 0.61 $ 0.55 Weighted average number of common shares and OP Units outstanding - basic 198, , , ,492 Weighted average number of common shares, OP Units, and common stock equivalents outstanding - diluted 203, , , ,485 FFO is defined as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable property, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. This definition conforms with the National Association of Real Estate Investment Trust's definition issued in April considers FFO in evaluating property acquisitions and its operating performance and believes that FFO should be considered along with, but not as an alternative to, net income and cash flows as a measure of 's activities in accordance with generally accepted accounting principles and is not necessarily indicative of cash available to fund cash needs. RE 3 gain on sales, net of taxes, is defined as net sales proceeds less a tax provision and the gross investment basis of the asset before accumulated depreciation. We consider FFO with RE 3 gain on sales, net of taxes, to be a meaningful supplemental measure of performance because the short-term use of funds produce profits which differ from the traditional long-term investment in real estate for REITs.

13 Attachment 3 Consolidated Balance Sheets June 30, December 31, In thousands, except share and per share amounts (unaudited) (audited) ASSETS Real estate owned: Real estate held for investment $ 7,141,505 $ 6,490,791 Less: accumulated depreciation (1,726,258) (1,566,618) 5,415,247 4,924,173 Real estate under development (net of accumulated depreciation of $0 and $0) 157,301 97,912 Real estate held for disposition (net of accumulated depreciation of $0 and $71,708) - 220,936 Total real estate owned, net of accumulated depreciation 5,572,548 5,243,021 Cash and cash equivalents 21,634 9,486 Marketable securities - 3,866 Restricted cash 20,220 15,447 Deferred financing costs, net 24,747 27,267 Notes receivable 7,800 7,800 Investment in unconsolidated joint ventures 177, ,057 Other assets 137,424 74,596 Total assets $ 5,961,777 $ 5,529,540 LIABILITIES AND STOCKHOLDERS' EQUITY Secured debt $ 1,992,401 $ 1,908,068 Secured debt - real estate held for disposition - 55,602 Unsecured debt 1,707,185 1,603,834 Real estate taxes payable 14,525 14,585 Accrued interest payable 23,341 20,889 Security deposits and prepaid rent 30,524 26,046 Distributions payable 42,654 36,561 Deferred gains on the sale of depreciable property 29,011 28,943 Accounts payable, accrued expenses, and other liabilities 104, ,925 Total liabilities 3,943,820 3,800,453 Redeemable non-controlling interests in operating partnership 187, ,057 Stockholders' equity Preferred stock, no par value; 50,000,000 shares authorized 2,803,812 shares of 8.00% Series E Cumulative Convertible issued and outstanding (2,803,812 shares at December 31, 2010) 46,571 46,571 3,264,362 shares of 6.75% Series G Cumulative Redeemable issued and outstanding (3,405,562 shares at December 31, 2010) 81,609 85,139 Common stock, $0.01 par value; 250,000,000 shares authorized 196,660,518 shares issued and outstanding (182,496,330 shares at December 31, 2010) 1,967 1,825 Additional paid-in capital 2,782,510 2,450,141 Distributions in excess of net income (1,075,499) (973,864) Accumulated other comprehensive loss, net (10,285) (3,469) Total, Inc. stockholders' equity 1,826,873 1,606,343 Non-controlling interest 3,775 3,687 Total equity 1,830,648 1,610,030 Total liabilities and stockholders' equity $ 5,961,777 $ 5,529,540

14 Attachment 4(A) Selected Financial Information (Dollars in thousands) COMMON STOCK EQUIVALENTS QTD Weighted Average Common shares (1) 190,478, ,407,013 Stock options and restricted stock 2,043,257 2,023,692 Operating partnership units 5,878,671 5,878,005 Preferred operating partnership units 1,751,671 1,751,671 Convertible preferred Series E stock 3,035,547 3,035,547 Total Common Stock Equivalents 203,187, ,095,928 MARKET CAPITALIZATION Balance % of Total Total debt $ 3,699, % Series G preferred stock at $ , % Common stock equivalents at $ ,108, % Total market capitalization $ 8,890, % COVERAGE RATIOS Quarter Ended Net income attributable to, Inc. $ 14,651 Adjustments (includes continuing and discontinued operations): Interest expense 37,844 Real estate depreciation and amortization 91,161 Real estate depreciation and amortization on unconsolidated joint ventures 2,844 Other depreciation and amortization 986 Non-controlling interests 258 Net gain on the sale of depreciable property, excluding RE 3 (43,767) Income tax expense 59 EBITDA $ 104,036 Interest expense $ 37,445 Capitalized interest expense 3,488 Total interest $ 40,933 Preferred dividends $ 2,327 Interest Coverage Ratio (2) 2.54 Fixed Charge Coverage Ratio (3) 2.40 Non-recurring management fee $ (844) Acquisition-related costs 2,074 Restructuring charge 745 Gain on sale of depreciable real estate (891) Interest Coverage Ratio - adjusted for non-recurring items 2.57 Fixed Charge Coverage Ratio - adjusted for non-recurring items 2.43 UNENCUMBERED ASSET SUMMARY % of Total Number of Homes Carrying Value Carrying Value Unencumbered assets 28,533 $ 4,219, % Encumbered assets 20,023 3,079, % 48,556 $ 7,298, % owns 8 assets, with a net carrying value of approximately $475.0 million, for which tax protections provided to the previous owner requires the Company to undertake tax-free exchanges in the event of their disposition. Approximately $5.1 billion or 91% of the net carrying value of real estate can be sold freely. SECURITIES RATINGS Debt Preferred Outlook Moody's Investors Service Baa2 Baa3 Stable Standard & Poors BBB BB+ Stable (1) Includes the effect of the issuance of 9.4 million shares at an average price of $25.01 and a net price of $24.51 during the three months ended and 13.5 million shares at an average price of $24.64 and a net price of $24.15 during the six months ended. (2) Interest coverage ratio is net income, less interest expense, real estate depreciation and amortization of wholly owned and joint venture communities, other depreciation and amortization, minority interests, net gain on the sale of depreciable property, excluding RE 3 and income tax, divided by total interest. (3) Fixed charge coverage ratio is net income, less interest expense, real estate depreciation and amortization of wholly owned and joint venture communities, other depreciation and amortization, minority interests, net gain on the sale of depreciable property, excluding RE 3 and income tax, divided by total interest plus preferred dividends.

15 Facility Maturity Total Capacity Amount Drawn Amount Available Interest Rate Attachment 4(B) Selected Financial Information (Dollars in thousands) DEBT STRUCTURE Weighted Average Years Balance % of Total Interest Rate to Maturity Secured Fixed $ 1,460,049 (1) 39.5% 5.2% 5.2 Floating 532,352 (2) 14.4% 1.6% 5.1 Combined 1,992, % 4.2% 5.1 Unsecured Fixed 1,602,185 (3) 43.3% 4.8% 3.8 Floating 105, % 2.9% 2.4 Combined 1,707, % 4.7% 3.7 Total Debt Fixed 3,062, % 5.0% 4.5 Floating 637, % 1.8% 4.7 Combined $ 3,699, % 4.4% 4.5 CASH AND AVAILABLE CREDIT CAPACITY Line of Credit 7/2012 Unsecured $ 600,000 $ 5,000 $ 595, % FNMA 11/2018 Secured 500, ,196 88, % FNMA 5/2012 (5) Secured 200,000 59, , % Construction loans Various Secured 92,600 56,837 35, % 1,392, , ,038 (6) Cash 21,634-21,634 Total cash and credit capacity at 6/30/2011 $ 1,414,234 $ 532, , and 2012 debt maturities (7) (512,492) Construction and redevelopment costs (279,662) Adjusted cash and credit capacity $ 89,518 (4) (1) Includes $333.3 million of floating rate debt that has been fixed using interest rate swaps at an average rate of 3.9%. (2) Includes $202.1 million of debt with an average interest rate cap at 6.1%. (3) Includes $250 million of debt that has been fixed using interest rate swaps at an average rate of 3.5%. (4) Excludes $1.7 million of letters of credit outstanding at. (5) Maturity can be extended to 2017 at 's option. (6) Not included in the total amount available is a $150 million accordion feature on 's $250 million term loan due January (7) Represents debt maturities after extensions (see attachment 4(c)).

16 (1) Includes $39.5 million credit facility advance with a five year extension, $30.6 million in permanent financing with a one year extension and $42.1 million for one construction loan with a one year extension. (2) Includes $59.5 million credit facility advance that can be extended for five years. (3) $600 million line of credit matures in July There are $5.0 million of borrowings outstanding at. (4) Includes $8.8 million in permanent financing with a one year extension at 's option and $14.7 million for one construction loan with a two year extension. (5) Includes $69.6 million permanent financing with a one year extension at 's option. Attachment 4(C) Selected Financial Information (Dollars in thousands) DEBT MATURITIES Secured Debt Unsecured Debt Balance Percentage of Total Weighted Average Interest Rate 2011 $ 118,972 (1) $ 96,680 $ 215, % 3.1% ,882 (2) 105,000 (3) 395, % 4.8% ,382 (4) 222, , % 4.3% , , , % 4.4% , , , % 5.3% ,634 (5) 333, , % 4.2% , , % 4.4% , , , % 4.5% , , % 4.2% Thereafter 27,000 15,681 42, % 3.6% $ 1,992,401 $ 1,707,185 $ 3,699, % 4.4% DEBT MATURITIES WITH EXTENSIONS Secured Debt Unsecured Debt Balance Percentage of Total Weighted Average Interest Rate 2011 $ 6,720 $ 96,680 $ 103, % 3.8% , ,000 (3) 409, % 5.1% , , , % 4.4% , , , % 4.4% , , , % 5.2% , , , % 3.6% , , % 4.1% , , , % 4.5% , , % 4.2% Thereafter 27,000 15,681 42, % 3.6% $ 1,992,401 $ 1,707,185 $ 3,699, % 4.4%

17 FASB ASC Subtopic , requires, among other things, that the primary assets and liabilities and the results of operations of s real properties which have been sold or are held for disposition, be classified as discontinued operations and segregated in s Consolidated Statements of Operations and Consolidated Balance Sheets. Properties classified as real estate held for disposition generally represent properties actively marketed or contracted for sale which are expected to close within the next twelve months. The primary assets and liabilities and the net operating results of those properties sold or classified as held for disposition through, are accounted for as discontinued operations for all periods presented. This presentation does not have an impact on net income available to common stockholders, it only results in the reclassification of the operating results of all properties sold or classified as held for disposition through, within the Consolidated Statements of Operations for the periods ended and 2010, and the reclassification of the assets and liabilities within the Consolidated Balance Sheets as of and December 31, During the three and six months ended, disposed of 7 communities with a total of 1,707 units. did not dispose of any communities during the three and six months ended June 30, At does not have any real estate held for disposition. The results of operations for these properties are classified on the Consolidated Statements of Operations in the line item entitled Income from discontinued operations : Attachment 5 Income From Discontinued Operations Three Months Ended Six Months Ended June 30, June 30, In thousands Rental income $ $ 451 $ 7,274 $ 7,258 14,578 Non-property income ,849 Rental expenses 161 2,169 2,367 4,511 Property management fee Real estate depreciation 54 3,472 2,651 6,940 Interest expense ,540 Other expenses ,610 6,034 13,392 Income before net gain on the sale of depreciable property $ ,225 3,035 Net gain on the sale of depreciable property 44, , Income from discontinued operations $ 44,818 $ 861 $ 45,924 3,191

18 Attachment 6 Operating Information (Dollars in thousands) Total Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Homes March 31, 2011 December 31, 2010 September 30, 2010 June 30, 2010 REVENUES Same-Store Communities 41,625 $ 141,092 $ 138,827 $ 137,250 $ 137,196 $ 136,234 Acquired Communities 3,112 18,097 7,660 7,751 2,089 - Redevelopment Communities 862 3,466 3,322 3,194 3,144 3,142 Development Communities and Other 2,957 14,112 13,886 13,007 10,691 7,271 Sold Communities n/a 451 6,807 6,791 7,205 7,274 Total 48,556 $ 177,218 $ 170,502 $ 167,993 $ 160,325 $ 153,921 EXPENSES Same-Store Communities $ 46,562 $ 47,379 $ 46,511 $ 47,720 $ 46,254 Acquired Communities 4,998 2,574 2, Redevelopment Communities 1,341 1,402 1,469 1,279 1,213 Development Communities and Other 6,086 6,144 5,853 5,178 4,031 Sold Communities 161 2,206 1,997 2,524 2,169 Total $ 59,148 $ 59,705 $ 58,234 $ 57,297 $ 53,667 NOI Same-Store Communities $ 94,530 $ 91,448 $ 90,739 $ 89,476 $ 89,980 Acquired Communities 13,099 5,086 5,347 1,493 - Redevelopment Communities 2,125 1,920 1,725 1,865 1,929 Development Communities and Other 8,026 7,742 7,154 5,513 3,240 Sold Communities 290 4,601 4,794 4,681 5,105 Total $ 118,070 $ 110,797 $ 109,759 $ 103,028 $ 100,254 OPERATING MARGIN Same-Store Communities 67.0% 65.9% 66.1% 65.2% 66.0% TOTAL INCOME PER OCCUPIED HOME Same-Store Communities $ 1,181 $ 1,163 $ 1,151 $ 1,150 $ 1,139 Acquired Communities 2,196 1,955 1,996 1,982 - Redevelopment Communities 1,598 1,520 1,460 1,400 1,387 Development Communities and Other 1,293 1,313 1,284 1,270 1,298 Total $ 1,255 $ 1,205 $ 1,191 $ 1,171 $ 1,155 PHYSICAL OCCUPANCY Same-Store Communities 95.7% 95.6% 95.5% 95.5% 95.8% Acquired Communities 95.8% 95.1% 94.2% 94.7% - Redevelopment Communities 83.8% 84.5% 84.6% 86.8% 87.6% Development Communities and Other 95.1% 90.2% 85.8% 79.5% 71.9% Total 95.4% 94.9% 94.4% 93.8% 93.4% ROIC Same-Store Communities 7.1% 7.0% 6.9% 6.9% 6.9% Same-Store Communities represent those communities acquired, developed and stabilized prior to April 1, 2010 and held as of. Acquired Communities consist of all multifamily properties acquired by the Company, other than through development activity, that are not included in Same-Store Communities. Redevelopment Communities consists of properties where greater than 10% of available apartment homes have been pulled off-line for major renovation. Development Communities consist of all multifamily properties developed or under development by the Company which are currently majority owned by the Company and had not achieved stabilization at least one year prior to the beginning of the most recent quarter. Other include properties managed by third parties, condominiums, joint venture properties, properties contracted for sale which are expected to close within the next 12 months, properties being prepared for redevelopment and where a material change in home count has occurred, and the non-apartment components of mixed use properties. Sold Communities consists of properties sold prior to. Stabilization occurs with the initial achievement of 90% occupancy for at least three consecutive months. Total Income per Occupied Home represents total residential revenues divided by the product of occupancy and the number of mature apartment homes. Physical Occupancy represents the number of occupied homes divided by the total homes available for a property. Return on Invested Capital ("ROIC") represents the referenced quarter's NOI, annualized, divided by the average of beginning and ending invested capital for the quarter.

19 Unconsolidated Total Total Development Total Joint Venture Total Current Current Expected Same-Store (Completed Total Consolidated Operating Homes Pipeline Pipeline Homes Homes Acquired Redev. to Date) Other Non-Mature Homes Homes (1) (incl. JV) (Consolidated) (Joint Venture) (1) (incl. JV) Totals 41,625 3, , ,931 48,556 9,891 58,447 1, ,456 Development Communities consist of all multifamily properties developed or under development by the Company which are currently consolidated by the Company and had not achieved stabilization at least one year prior to the beginning of the most recent quarter. Attachment 7 (A) Portfolio Overview Quarterly Same- Store Portfolio Non-Mature Homes Homes in Development Western Region Orange Co., CA 3, ,254-4, ,574 San Francisco, CA 1, , , ,991 Monterey Peninsula, CA 1, ,565-1, ,565 Los Angeles, CA , , ,771 San Diego, CA ,259 Seattle, WA 1, , , ,720 Inland Empire, CA 1, ,074-1, ,074 Sacramento, CA Portland, OR ,364 1, ,081 15,445 1,241 16, ,584 Mid-Atlantic Region Metropolitan DC 3, , , ,425 Richmond, VA 2, ,211-2, ,211 Baltimore, MD 2, , , ,680 Norfolk, VA 1, ,438-1, ,438 Boston, MA - 1, ,179 1,179 1,302 2, ,721 New York, NY Other Mid-Atlantic 1, , , ,451 10,418 2, ,195 13,613 3,055 16, ,419 Southeastern Region Tampa, FL 3, , , ,268 Orlando, FL 3, ,167-3, ,167 Nashville, TN 2, ,260-2, ,260 Jacksonville, FL 1, ,857-1, ,857 Other Florida 1, ,184-1, ,184 12, , , ,736 Southwestern Region Dallas, TX 3, ,031 2,657 6, ,048 Phoenix, AZ 1, ,744-1, ,744 Austin, TX , ,532 Other Southwest ,582 2, ,393 5, , ,655 7,226 5,131 12, ,717 (1) See Attachment 11 for 's ownership percentage in the joint ventures. Same-Store Communities represent those communities acquired, developed and stabilized prior to April 1, 2010 and held as of. Acquired Communities consist of all multifamily properties acquired by the Company, other than through development activity, that are not included in Same-Store Communities. Redevelopment Communities consists of properties where greater than 10% of available apartment homes have been pulled off-line for major renovation. Other includes properties managed by third parties, including those under a Master Lease, and properties being prepared for redevelopment and where a material change in home count has occurred.

20 Attachment 7 (B) Portfolio Overview - Total Income per Occupied Home Quarterly Same- Store Portfolio Non-Mature Homes Unconsolidated Same-Store Development Total Joint Venture Total Total Income per (Completed Consolidated Operating Homes Occupied Home Acquired Redev. to Date) Other Homes Homes (1) (incl. JV) Western Region Orange Co., CA $ 1,513 $ 1,830 $ - $ - $ - $ 1,533 $ - $ 1,533 San Francisco, CA 2,035 3,274 1,777-1,903 2,081 2,808 2,119 Monterey Peninsula, CA 1, ,109-1,109 Los Angeles, CA 1,916 1, ,836 3,670 2,108 San Diego, CA 1, ,291 2,894 1,785 Seattle, WA 1, ,674-1,314 2,590 1,569 Inland Empire, CA 1, ,253-1,253 Sacramento, CA Portland, OR Mid-Atlantic Region Metropolitan DC 1,652 3,005-1,370 1,423 1,608 2,781 1,755 Richmond, VA 1, ,040-1,040 Baltimore, MD 1,310 2, ,365 1,599 1,396 Norfolk, VA Boston, MA - 1, ,937 1,931 1,963 New York, NY - 2, ,991-2,991 Other Mid-Atlantic 1, ,046-1,040 2,120 1,460 Southeastern Region Tampa, FL ,210 1,004 Orlando, FL Nashville, TN Jacksonville, FL Other Florida 1, ,007-1,007 Southwestern Region Dallas, TX ,265-1,017 1,192 1,086 Phoenix, AZ Austin, TX 1,165-1, ,159 1,595 1,420 Other Southwest ,297 1,187 Totals $ 1,181 $ 2,182 $ 1,598 $ 1,232 $ 1,525 $ 1,255 $ 1,718 $ 1,337 (1) Represents joint ventures at 100%. See Attachment 11 for 's ownership percentage in the joint ventures. Total Income per Occupied Home represents total residential revenues divided by the product of occupancy and the number of apartment homes. Same-Store Communities represent those communities acquired, developed and stabilized prior to April 1, 2010 and held as of. Acquired Communities consist of all multifamily properties acquired by the Company, other than through development activity, that are not included in Same-Store Communities. Redevelopment Communities consists of properties where greater than 10% of available apartment homes have been pulled off-line for major renovation. Development Communities consist of all multifamily properties developed which are currently consolidated by the Company and had not achieved stabilization at least one year prior to the beginning of the most recent quarter. Other includes properties being prepared for redevelopment and where a material change in home count has occurred.

21 Totals 41, % 95.7% 95.8% -0.1% $ 1,181 $ 1, % (1) Total Income per Occupied Home represents total residential revenues divided by the product of occupancy and the number of mature apartment homes. Attachment 8(A) Operating Information by Major Market Current Quarter vs. Prior Year Quarter Percent of Same-Store Portfolio Same-Store Total Based on Same-Store QTD Physical Occupancy Total Income per Occupied Home (1) Homes 2011 NOI 2Q 11 2Q 10 Change 2Q 11 2Q 10 Change Western Region Orange Co., CA 3, % 95.6% 95.8% -0.2% $ 1,513 $ 1, % Seattle, WA 1, % 96.2% 96.7% -0.5% 1,262 1, % San Francisco, CA 1, % 97.2% 97.3% -0.1% 2,034 1, % Monterey Peninsula, CA 1, % 94.5% 95.1% -0.6% 1,109 1, % Inland Empire, CA 1, % 94.6% 94.9% -0.3% 1,253 1, % Los Angeles, CA % 95.7% 95.4% 0.3% 1,915 1, % Sacramento, CA % 92.3% 92.5% -0.2% % Portland, OR % 95.8% 95.8% 0.0% % San Diego, CA % 94.9% 95.9% -1.0% 1,291 1, % 13, % 95.4% 95.7% -0.3% 1,420 1, % Mid-Atlantic Region Metropolitan DC 3, % 97.2% 96.9% 0.3% 1,652 1, % Richmond, VA 2, % 96.2% 95.6% 0.6% 1,040 1, % Baltimore, MD 2, % 96.8% 97.1% -0.3% 1,309 1, % Norfolk, VA 1, % 95.5% 95.8% -0.3% % Other Mid-Atlantic 1, % 96.3% 96.5% -0.2% 1,039 1, % 10, % 96.6% 96.5% 0.1% 1,295 1, % Southeastern Region Tampa, FL 3, % 95.1% 95.6% -0.5% % Orlando, FL 3, % 94.7% 95.2% -0.5% % Nashville, TN 2, % 96.8% 97.2% -0.4% % Jacksonville, FL 1, % 94.3% 94.7% -0.4% % Other Florida 1, % 93.5% 94.4% -0.9% 1, % 12, % 95.1% 95.5% -0.4% % Southwestern Region Dallas, TX 3, % 96.4% 95.5% 0.9% % Phoenix, AZ 1, % 95.2% 95.4% -0.2% % Houston, TX % 95.0% 93.2% 1.8% % Austin, TX % 95.9% 94.7% 1.2% 1,166 1, % 5, % 95.9% 95.1% 0.9% %