Manhattan Lures REITs Capitalizing on Rising Rents as Sales Lag: Mortgages

Tom Toomey, chief executive officer of real estate investment firm UDR Inc. (UDR), is betting the best rental deal in Manhattan is owning the whole building.
The nation’s third-largest apartment real estate investment trust bought a five-tower apartment complex on Columbus Avenue between West 97th and 100th streets for about $630 million last month, with rents from $2,500 for a studio or one-bedroom apartment to more than $10,000 a month for a penthouse suite. It’s Toomey’s fifth purchase in Manhattan in the past year as rents soar and financing difficulties make it harder for individuals to buy.
“Financing and underwriting are much tighter,” Toomey said in a telephone interview. With purchases requiring larger down payments, “people are going to stay renters for a long time,” said Toomey, who’s based in Highlands Ranch, Colorado.
Strict lending standards for so-called jumbo mortgages have contributed to declining home buying across the U.S. by even the most creditworthy borrowers as issuance of the loans has dropped 68 percent since 2007. Nowhere is that more evident than in Manhattan, where the median price of a two-bedroom apartment is about $1.2 million, almost twice the limit backed by government- supported mortgage companies Fannie Mae and Freddie Mac.
Manhattan rents rose 9.5 percent last quarter to an average $3,121, Miller Samuel Inc. and Prudential Douglas Elliman Real Estate said in a report last month. That’s about three times the rate for the 44 largest apartment markets in the U.S., according to Marcus & Millichap, a real estate brokerage firm. Manhattan rental apartment vacancy rates fell to a four-year low of 0.96 percent last year, down from 1.2 percent a year earlier and 1.9 percent in 2009, according to brokerage Citi Habitats. Vacancy bottomed in 2006 at 0.76 percent.

Wall Street Pay

“The key to the strength of the rental market is tightness of credit,” Jonathan Miller, president of appraiser Miller Samuel, said in a telephone interview. “It takes quadruple-A bizarre credit requirements to get approved.”
Jumbo loans exceed limits set for government-controlled mortgage companies by congress. For New York that’s $625,500.
Wall Street’s pay practices are also making it harder to buy, as financial firms increasingly pay bonuses in stock and deferred cash, said Alan Johnson, managing director of compensation consultant Johnson Associates Inc.
Morgan Stanley, Credit Suisse Group AG and Citigroup Inc. have all reduced senior investment bankers’ pay for last year as revenue slows. Morgan Stanley is capping immediate cash bonuses at $125,000, people with knowledge of the move said last month.

Shorter Commitment

“It’s not a great sign for the financial sector contributing to purchasing apartments because there’s no sense of urgency to buy,” said Johnson. “Rentals are a much shorter commitment.”
Renters outnumber homeowners in the country’s largest cities including New York, Los Angeles and Chicago. More than 77 percent of Manhattan’s occupied units were rented in the decade ended 2010, compared with nearly 23 that were owned, data from the Census Bureau showed.
Nationally, the home ownership rate fell 1.1 percent to 65.1 percent from 2000 to 2010, the largest decrease since the Great Depression, according to the U.S. Census Bureau.
Low vacancy rates and rents that are likely to continue climbing this year have made apartments the “darling” of commercial real estate, according to Ryan Severino, economist at research firm Reis Inc.

Apartment Indices

The Bloomberg REIT Apartment Index (BBREAPT) of 16 publicly traded landlords returned 10 percent in the past year, including reinvested dividends, compared with returns of 6.8 percent for the Bloomberg REIT Index (BBREIT) and 5.2 percent for the Standard & Poor’s 500 Index. Equity Residential (EQR), the largest U.S. apartment REIT, returned 11.2 percent in the past year, according to data compiled by Bloomberg, and UDR gained 10.8 percent.
Toomey said in August that the REIT planned to invest as much as $1.8 billion in Manhattan apartment buildings. Its most recent purchase, about 700 apartment units at Columbus Square on the Upper West Side, was a joint venture with MetLife Inc. (MET), the biggest U.S. life insurer.
They partly funded the purchase with $302.3 million of 10- year fixed- and floating-rate debt from Fannie Mae, the government-supported mortgage company, UDR said in a statement last month. The loans pay 3.8 percent interest.
That compares with a rate of 4.85 percent for a 30-year jumbo mortgage to an individual in New York (ILMJNY) and 4.73 percent nationally, according to Bankrate.com data. For conforming Freddie Mac (NMCMFUS) loans, rates are 3.95 percent, after falling to 3.87 percent this month, the lowest in records dating to 1971.

Housing Limits

Lenders have been wary to issue mortgages for non- conforming loans including jumbos since the housing market started falling in 2006 and losses on mortgage securities propelled the nation into the worst financial crisis since the Great Depression.
For Fannie Mae and Freddie Mac, the conforming limit is $625,500 in high-priced markets such as New York, San Francisco and the Florida Keys, compared with $417,000 for most of the rest of the country. The Federal Housing Administration (FHAVARM$), a government agency with the goal of expanding ownership for “underserved” communities, according to its website, will insure loans up to $729,750 in New York.
Banks and mortgage lenders issued $110 billion in jumbo loans last year, up 5.8 percent from 2010, according to Guy Cecala, publisher of Inside Mortgage Finance. The market has contracted from $348 billion in 2007 after peaking in 2003 at $650 billion.

Origination Volumes

Mortgage origination overall was down 17 percent year-over- year to $1.35 trillion, the lowest in over a decade, according to Cecala.
Lenders and bankers, no longer able to package jumbo loans and sell them to investors, are required to have enough capital to carry non-conforming debt on their books until maturity.
“Some don’t have the ability to keep it on their balance sheets,” Monte N. Redman, president of bank holding company Astoria Financial Corp., said in a telephone interview.
FHA loans are also harder to get in Manhattan, and aren’t available at all for co-op apartments, because borrowers purchase shares in the building’s management company instead of buying the property itself. The FHA does limited lending for condominiums, units individually grouped into a cluster. It insured 107 mortgages for condos in Manhattan last year, compared with 90 in 2010 and 42 in 2009, the FHA said.

Manhattan Sales

Manhattan co-op and condominium sales totaled 2,011 in the fourth quarter, 12.4 percent less a year earlier, according to Miller Samuel and Prudential.
Non-conforming loans nationally accounted for nearly 2 percent of all purchase applications last year, up 33 percent relative to 2010, according to the Mortgage Bankers Association’s monthly profile of state and national mortgage activity.
Those loans have tougher standards such as high interest rates and down payments ranging from 25 to 40 percent, according to Mike Fratantoni, vice president of research for the Mortgage Bankers Association.
“They’re only available to the best credit borrowers,” Fratantoni said.
Financing a purchase with loans above government limits won’t get easier until the secondary market grows an appetite for jumbo loans, according to Miller of Miller Samuel.
The secondary market comprises mortgage bankers, savings and loan associations and large private investment institutions that buy mortgages from primary lenders or investors.

MBS Sales

There are signs of revival for mortgage-backed securities, according to Jan Scheck, managing director at DE Capital Mortgage, a New York-based mortgage consulting firm.
Redwood Trust Inc. (RWT), a real estate investment trust based in Mill Valley, California, has completed four sales of bonds totaling about $1 billion tied to new U.S. home loans since 2010, according to Mike McMahon, managing director of Redwood, which specializes in jumbo loans.
Wells Fargo & Co., the nation’s largest home lender, plans to trim credit requirements this year as it aims to increase its loan volume, according to Greg Gwizdz, sales manager for the eastern U.S. for Wells Fargo Home Mortgage. The bank reduced the cost of loans over $2 million last month and is lowering post- closing requirements for cash reserves, he said.
“We’re seeing a fair amount of demand, we have a strong appetite and we’re doing a lot of volume,” Gwizdz said in a telephone interview.
Wells Fargo funded $13.7 billion in non-conforming loans across the nation for the nine month period ending September, the San Francisco-based lender said. In Manhattan its volume of loans without government backing increased 56 percent from a year earlier.

William Beaver House

For now, building owners don’t have time to wait for the rebound. William Beaver House in Manhattan’s Financial District was mostly empty in 2010, two years after the 47-story condominium tower was built. It’s almost 90 percent occupied after owner CIM Group converted the units to luxury rentals costing more than $8,000 a month for a three-bedroom. A down payment on a $3 million apartment at William Beaver would range anywhere from $750,000 to over $1 million, per jumbo loan standards. A pre-recession down payment, averaging 20 percent or less, would have cost $600,000.
“Without the conversion, the condos wouldn’t have sold or would have sold at half the price,” Bob Scaglion of Rose Associates, the company’s manager, said. Eventually, the owners want to put the condominiums back on the purchase market, according to Heather McDonough, broker for Prudential Real Estate who works to sell William Beaver units.
“The rentals are in high demand,” McDonough said. “In a few years, maybe it will be different.”
To contact the reporter on this story: Christine Harvey in New York at charvey32@bloomberg.net
To contact the editor responsible for this story: Rob Urban at robprag@bloomberg.net
http://tourism9.com/    http://vkins.com/

Online resources for doing research

If you’re considering a company as a possible investment, you’ll need to determine how healthy and promising it is. Here are some online resources that can help. (Two good offline resources are “The Little Book That Still Beats the Market” by Joel Greenblatt and “The Little Book of Value Investing” by Christopher H. Browne — both Wiley, $20.)
•The company’s own website. Look for links labeled “About Us,” “Corporate Information,” “Investor Relations,” etc., and try to read through at least the most recent annual report. Even a “Career Opportunities” section can give you insights into how heavily it’s hiring and what kinds of people it needs. Search engines such as Google.com can help you find a company’s website.
•Online company data providers, such as finance.yahoo.com and caps.fool.com. Financial statements that companies must file with the Securities and Exchange Commission (SEC) are available through such sites and also at sec.gov/edgar.shtml.
•Analyst research reports. Most major online brokerages (such as E-Trade, TD Ameritrade, Schwab, Fidelity, etc.) offer customers access to a range of Wall Street reports on loads of stocks. Learn more about choosing the best brokerage at broker.fool.com.
•Industry information. Research an industry at websites such as these: virtualpet.com/industry /rdindex2.htm, bls.gov/iag, and valuationresources.com/IndustryReport.htm. Simple Google searches can help, too.
•Historical P/E ratios and other measures. Look these up at sites such as morningstar.com.
Historical numbers can be very handy. If a company you’re examining has a P/E of 22, for example, and you see that over the past five years its P/E has usually been around 30, then you might be looking at an attractive price right now. (Do more digging, though, to make sure the company isn’t facing some current tough challenges.)
•Articles in current issues and archives of financial periodicals such as The Wall Street Journal and Fortune. You can read many online for free, and your local newspaper’s business section can be informative, too.

http://tourism9.com/    http://vkins.com/

NI Technology Updates Outlooks for First Solar, Trina Solar, Yingli Green Energy, Hewlett-Packard, and Marvell …

PRINCETON, N.J., Feb. 22, 2012 /PRNewswire/ – Next Inning Technology Research (http://www.nextinning.com), an online investment newsletter focused on semiconductor and technology stocks, has published updated outlooks on First Solar (Nasdaq: FSLR – News), Trina Solar (NYSE: TSL – News), Yingli Green Energy (NYSE: YGE – News), Hewlett-Packard (NYSE: HPQ – News), and Marvell Technology Group (Nasdaq: MRVL – News).
Next Inning readers leverage the insight you can only get from an industry insider.  Next Inning editor Paul McWilliams was a tech industry executive for more than two decades.  Not only does he know how things work from the inside and how to spot a winning business model, he also has a long and successful record of picking winning stocks.  Year to date in 2012 these picks have driven a 24% gain for the Next Inning Model Portfolio. Since its inception in 2002, the model portfolio is up over 300%.
McWilliams‘ latest reports have the tech world buzzing. Recently, he covered Apple suppliers most likely to leverage the tech giant’s huge success, while warning investors about selected companies that may not always be able to count on Apple’s business. McWilliams has also put out a new report covering a massive, potentially paradigm-shifting project by Google that will see the search giant roll out ultra-fast internet service, making winners out of select suppliers and posing a big threat to incumbent firms. These reports are essential reading, unavailable except via free trial subscription to Next Inning.
To get ahead of the Wall Street curve, you are invited to take a free, 21-day, no obligation trial with Next Inning.  For full details on this offer, please visit the following link:
https://www.nextinning.com/subscribe/index.php?refer=prn1368
McWilliams covers these topics and more in his recent reports:
– After advising Next Inning subscribers to exit First Solar in April 2010 when it was trading above $130, does McWilliams see opportunities in the sector among names like First Solar, Trina and Yingli? Does McWilliams trust the rally that the solar sector has experienced this year, or should investors be cautious and lock in profits? What is the primary challenge when it comes to investing in the “solar economy?” Why does China have many reasons to fund solar initiatives as compared to the U.S.?
– McWilliams suggested selling HP in late 2010 when the stock was trading at $43.50.  Now that HP has hired Meg Whitman to run the show, does he think it’s time to buy back in?  What other aspects of the HP story does McWilliams think investors need to evaluate carefully before making a final buy decision?
– Does McWilliams view the impact on Marvell from flooding in Thailand to be just a short-term issue for the stock? Is Marvell’s current valuation unrealistic when considering its growth potential? What is McWilliams’ fair value estimate for Marvell and how much upside does it represent from current prices?
Founded in September 2002, Next Inning’s model portfolio has returned 305% since its inception versus 50% for the S&P 500.
About Next Inning:
Next Inning is a subscription-based investment newsletter that provides regular coverage on more than 150 technology and semiconductor stocks.  Subscribers receive intra-day analysis, commentary and recommendations, as well as access to monthly semiconductor sales analysis, regular Special Reports, and the Next Inning model portfolio. Editor Paul McWilliams is a 30+ year semiconductor industry veteran.
NOTE: This release was published by Indie Research Advisors, LLC, a registered investment advisor with CRD #131926.  Interested parties may visit adviserinfo.sec.gov for additional information.  Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
CONTACT: Marcia Martin, Next Inning Technology Research, +1-888-278-5515
http://tourism9.com    http://vkins.com

Pat Robertson: We Need To Jail The Bankers Who Caused The Financial Crisis

video
The 700 Club‘s Pat Robertson discussed the banking crisis and glowingly spoke about how Iceland jailed many of the bankers who devastated their nation’s economy by taking out fraudulent loans. Robertson hailed the Nordic nation for its actions and said that Americans should deal with the financial crisis in the same way. “Guess what country is getting itself out of a financial problem by some draconian measures?” Robertson asked his co-host Terry Meeuwsen. “Greece?” she asked. “No, not even close. Iceland!” Robertson exclaimed. “They are putting people in jail. Prime ministers are being indicted. They are going after banks. The people said the banks are ripping us off. We don’t like what they did, and they brought our country to ruin. Suddenly, Iceland is turning around and they look like a big success story!”
“Think we could learn something?” Meeuwsen asked.
RELATED: Alan Grayson Gets Standing Ovation While Bill Maher Panel Mocks Occupy Wall Street ‘Hippies’
“We sure could!” Roberson continued. “We could start putting all of those bankers in jail. There was not one banker prosecuted and so many people were lying, and so-called “no-doc loans” and liars’ loans, and none of them have been held accountable. I’m not for putting people in jail. I’m sick of these — we’ve got too many penalties. Too many penalties, too many criminal sanctions, too many people in prison. But here is an opportunity for the people who wanted, you know, to enforce laws, to enforce that one. There must be some laws against lying on documents. I’m sure there are.”
“Lying to banks is a super no-no,” he added. “It has criminal sanctions, but nobody so far has had to pay the price, but Iceland is leading the way and their GDP is growing, and all of a sudden, they were in a terrible mess, terrible mess, and look what is happening!”
Watch the segment below via CBN:
(h/t Republic Report via Reddit)
Follow us on Twitter.
Sign up for Mediaite’s daily newsletter.
filed under
share this post
http://tourism9.cm/    http://vkins.com/

W. P. Carey Announces Proposed Acquisition of CPA:15 and Conversion to REIT

NEW YORK, NY–(Marketwire -02/21/12)- Investment firm W. P. Carey & Co. LLC (“W. P. Carey“) announced today that its Board of Directors has approved its conversion to a real estate investment trust (“REIT”) and that its Board of Directors and the Board of Directors of its publicly held, non-traded REIT affiliate, Corporate Property Associates 15 Incorporated (“CPA®:15″), have unanimously approved a definitive merger agreement pursuant to which W. P. Carey will acquire CPA®:15 immediately following the REIT conversion. Under the terms of the proposed merger, CPA®:15 stockholders will receive $1.25 in cash and 0.2326 of a share of W. P. Carey common stock for each CPA®:15 share at closing. The transaction values CPA®:15 at $2.6 billion, including the assumption of CPA®:15 debt of $1.2 billion, as of December 31, 2011. The new REIT, to be named W. P. Carey Inc., will continue to trade on the New York Stock Exchange under the symbol WPC (NYSE: WPC – News). The conversion to a REIT is subject to the approval of W. P. Carey shareholders and the merger is subject to approval of both the shareholders of W. P. Carey and the stockholders of CPA®:15.
Following the merger, W. P. Carey Inc. is expected to have a total equity market capitalization of approximately $3 billion, total market capitalization of $5 billion and a portfolio of 43 million square feet of corporate real estate leased to 135 companies around the world. W. P. Carey Inc. will continue to manage the firm’s Corporate Property Associates (CPA®) series of publicly held, non-traded REITs.
The proposed merger is expected to be accretive to both AFFO per share and CAD per share for W. P. Carey. W. P. Carey currently anticipates that, following the transactions, the new REIT will increase its annual dividend to $2.60 per share to maintain compliance with REIT tax requirements.
W. P. Carey believes that the benefits of the proposed merger and conversion to REIT status include:

• Significant increase in W. P. Carey Inc.’s scale and real estate under ownership
• Increased financial strength and flexibility to access capital for growth
• Enhanced cash available for continued dividend growth
• Simplified tax reporting for shareholders
• Further diversification of its shareholder base over time, including from active and passive REIT investors

W. P. Carey President and CEO Trevor Bond commented, “We believe that the proposed merger and REIT conversion are in the best interests of both W. P. Carey and CPA®:15 investors. In addition to providing liquidity for CPA®:15 investors, this transaction will enhance our strength and flexibility, with a larger balance sheet and more diversified portfolio. Over the long-term, we believe it will allow us to capitalize on new opportunities that are consistent with our established investment parameters and our overall business strategy of growing assets under ownership and enhancing shareholder value.”
BofA Merrill Lynch is acting as financial advisor to W. P. Carey and DLA Piper US LLP is acting as the legal advisor to W. P. Carey. Deutsche Bank is acting as financial advisor to CPA®:15 and Clifford Chance LLP is acting as legal advisor to CPA®:15.
A joint proxy statement/prospectus will be filed on Form S-4 with the Securities and Exchange Commission, which will describe the proposed merger and REIT conversion. Completion of the transactions is subject to receipt of all third-party consents as well as the approval of shareholders and stockholders of both companies and satisfaction of customary closing conditions. The transactions are currently expected to close by the third quarter of 2012, although there can be no assurance of such timing.
CONFERENCE CALL & WEBCAST
Please call at least 10 minutes prior to call to register.
Time: Wednesday, February 22 at 10:30 AM (ET)
Call-in Number: 1-866-524-3160
(International) + 1-412-317-6760
Webcast: www.wpcarey.com/merger
W. P. Carey & Co. LLCW. P. Carey & Co. LLC (NYSE: WPC – News) owns and manages a global investment portfolio of approximately $12 billion. W. P. Carey provides companies worldwide with long term sale leaseback and build to suit financing and engages in other types of real estate-related investment. Publicly traded on the New York Stock Exchange (WPC), W. P. Carey and its CPA® series of income-generating, non-traded REITs help companies and private equity firms unlock capital tied up in real estate assets. The W. P. Carey Group’s investments are highly diversified, comprising contractual agreements with approximately 288 long term corporate tenants spanning 28 industries and 18 countries. www.wpcarey.com
Cautionary Statement Concerning Forward-Looking Statements:
Certain of the matters discussed in this communication constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, among other things, statements regarding the intent, belief or expectations of W. P. Carey and can be identified by the use of words such as “may,” “will,” “should,” “would,” “assume,” “outlook,” “seek,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast” and other comparable terms. These forward-looking statements include, but are not limited to, statements regarding the benefits of the REIT Conversion and the Merger, integration plans and expected synergies, the expected benefits of the REIT Conversion, anticipated future financial and operating performance and results, including estimates of growth, and the expected timing of completion of the proposed REIT Conversion and the Merger. These statements are based on the current expectations of the management of W. P Carey. It is important to note that W. P. Carey’s actual results could be materially different from those projected in such forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results, performance or achievements of the combined company. Discussions of some of these other important factors and assumptions are contained in W. P. Carey’s filings with the SEC and are available at the SEC’s website at http://www.sec.gov, including: (a) Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2010 as filed with the SEC on February 25, 2011 and (b) in the Current Report on Form 8-K filed with the SEC on June 10, 2011. These risks, as well as other risks associated with the proposed merger, will be more fully discussed in the joint proxy statement/prospectus that will be included in the Registration Statement on Form S-4 that W. P. Carey will file with the SEC in connection with the proposed REIT Conversion and the Merger. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this communication may not occur. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication. Except as required under the federal securities laws and the rules and regulations of the SEC, W. P. Carey does not undertake any obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events.
Additional Information and Where to find it:
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. W. P. Carey intends to file a registration statement on Form S-4 that will include a joint proxy statement / prospectus and other relevant documents to be mailed by W. P. Carey and CPA®:15 to their respective security holders in connection with the proposed REIT Conversion and the Merger. WE URGE INVESTORS TO READ THE JOINT PROXY STATEMENT/ PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT W. P. CAREY, CPA®:15 AND THE PROPOSED REIT CONVERSION AND MERGER. INVESTORS ARE URGED TO READ THESE DOCUMENTS CAREFULLY AND IN THEIR ENTIRETY. Investors will be able to obtain these materials (when they become available) and other documents filed with the SEC free of charge at the SEC’s website (http://www.sec.gov). In addition, these materials (when they become available) will also be available free of charge by accessing W. P. Carey’s website (http://www.wpcarey.com) or by accessing CPA®:15′s website (http://www.cpa15.com). Investors may also read and copy any reports, statements and other information filed by W. P. Carey or CPA®:15, with the SEC, at the SEC public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 or visit the SEC’s website for further information on its public reference room.
Participants in the Proxy Solicitation:
Information regarding W. P. Carey’s directors and executive officers is available in its proxy statement filed with the SEC by W. P. Carey on April 29, 2011 in connection with its 2011 annual meeting of shareholders, and information regarding CPA®:15′s directors and executive officers is available in its proxy statement filed with the SEC by CPA®:15 on April 29, 2011 in connection with its 2011 annual meeting of stockholders. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available.
http://tourism9.cm/    http://vkins.com/

DealBook: Private Equity Industry Attracts S.E.C. Scrutiny

In recent years, the private equity industry has escaped much of the regulatory scrutiny that has been directed toward hedge funds and Wall Street banks. But that appears to be changing.
The Securities and Exchange Commission has begun a broad examination of the private equity industry, seeking information about the business practices of some of the country’s most powerful financial firms.
The S.E.C.’s enforcement unit sent a letter late last year to several private equity funds as part of what it called an “informal inquiry” into the industry, according to two people with direct knowledge of the matter who requested anonymity because they were not authorized to discuss it publicly. It is not clear which firms received the letter.
While the S.E.C. emphasized that the request should not be construed as an indication that it suspected any wrongdoing, its goal in gathering information was to investigate possible violations of securities laws, these people said.
One focus of the inquiry is how private equity firms value their investments and report performance. Unlike the valuing of publicly traded stocks, valuing private equity investments — largely in private companies that are not listed on an exchange — can be a thorny and subjective process.
The S.E.C.’s concern, say people familiar with the government inquiry, is that some private equity funds might overstate the value of their portfolios to attract investors for future funds.
“Private equity firms work hard, with auditors and company managements, to provide accurate valuations of their largely illiquid holdings to their investors,” said Steve Judge, the chief executive of the Private Equity Growth Capital Council, the industry’s trade group.
The S.E.C. inquiry, which was reported earlier by The Wall Street Journal, adds to the increased scrutiny of the private equity industry in Washington and expands the agency’s interest in how financial institutions value their holdings.
While private equity billionaires like Henry R. Kravis and Stephen A. Schwarzman have long made headlines for their audacious deals, the industry has historically received minimal attention from federal lawmakers, in part because private equity clients — typically pension funds and the investment arms of foreign governments — are considered to be more sophisticated than average investors.
The inquiry also comes at a time when private equity has been thrust onto the national stage as a central issue in the presidential election. Mitt Romney, a leading contender for the Republican nomination, earned his fortune running Bain Capital, one of the world’s largest private equity firms.
The industry drew heightened interest during last decade’s buyout boom. Backed by billions of dollars in loans from flush banks, the firms acquired major American companies, including the radio giant Clear Channel Communications, the hospital chain H.C.A. and the automaker Chrysler.
Washington began to pay attention. The favorable tax treatment that private equity executives receive on a large portion of their compensation came under attack. The Justice Department began investigating whether the world’s largest private equity firms colluded to drive down the prices of acquisitions that they teamed up on.
Under the Dodd-Frank financial reform law, most private equity firms must register with the S.E.C. by the end of March. The commission already oversees many firms. The Blackstone Group and Kohlberg Kravis Roberts, for example, are publicly traded companies that provide the commission with detailed financial information.
While the largest private equity shops receive the most publicity, the industry is vast, with several thousand firms and more than $1 trillion in assets under management.
Critics of the industry argue that private equity’s core investment strategy — taking on large amounts of debt to buy companies — too often results in bankruptcies and job losses.
Private equity officials counter that their acquisitions drive economic growth by making companies more competitive. They also boast of delivering superior investment returns to clients, including public pension funds.
The S.E.C inquiry appears less focused on big-picture questions like private equity’s effect on jobs or the companies that it buys. Instead, the commission wants to deepen its understanding of more arcane issues like firms’ fee structures and how they value investments.
Handling the inquiry is the S.E.C.’s enforcement division, which drew criticism for its ineffectiveness as a regulator in the period leading up to the financial crisis. The agency has recently taken a more aggressive public stance, vowing to root out misconduct on Wall Street.
Speaking at a private equity conference last month, Robert B. Kaplan, co-chief of the S.E.C. enforcement division’s newly formed asset management unit, said he thought the private equity industry lacked sufficient oversight and deserved more scrutiny.
One area of focus is portfolio valuation. Private equity managers use varying, complex methodologies to value their holdings, which are often private companies bought using debt. Because there are no easily ascertainable market prices for private companies, subjective judgments play a significant role in their valuation.
While the industry has in recent years provided managers with a framework for valuing their private holdings, even its largest, most sophisticated players acknowledge the complexities involved.
The Carlyle Group, for instance, which has filed for an initial public offering, lists valuation as a “risk factor” in its registration statement with the S.E.C.
“Valuation methodologies for certain assets in our funds can involve subjective judgments,” Carlyle said, “and the fair value of assets established pursuant to such methodologies may be incorrect, which could result in the misstatement of fund performance.”
Private equity funds argue that they are rigorous in their valuation process. Many firms use independent financial advisory firms that specialize in portfolio valuation, like Duff & Phelps.
They also contend that interim valuations are less important to investors in private equity funds than investors in other vehicles like hedge funds. That is because private equity funds earn profits only when they sell a holding. By contrast, hedge fund managers are paid on their gains at the end of each year.
“Because private equity investments are not traded on stock exchanges, investors and company management can focus on creating value over the long term and not on the monthly or quarterly pressures of the public markets,” said Mr. Judge, the chief of the industry trade group.
The valuation of assets has become a main focus of law enforcement authorities, not only at private equity firms but also at hedge funds and Wall Street banks.
Earlier this month, federal prosecutors charged three former Credit Suisse executives with inflating the value of their mortgage-bond holdings to secure higher bonus payouts.
The S.E.C. recently filed several actions against hedge funds as part of an initiative to combat fraudulent valuations and phony returns. The effort — called the “aberrational performance inquiry” — uses what the S.E.C. calls proprietary risk analytics to evaluate hedge fund performance.
In announcing the initiative, the S.E.C. emphasized that it was interested in assessing returns across Wall Street.
“We are applying analytics across the investment adviser space — beyond performance and beyond hedge funds,” the agency said.
http://tourism9.cm/    http://vkins.com/

Mortgage Compliance and Real Estate Loss Mitigation Company, American Loan Compliance, Featured in National Business …

NEW YORK, Feb. 7, 2012 /PRNewswire/ –  American Loan Compliance, America’s leading loss mitigation and commercial mortgage loan audit report experts, were recently featured in the press showcasing the advantages to having loans investigated prior to negotiating terms on restructuring real estate loans. The experts interviewed and featured are dedicated to spreading knowledge, educational products, tools and awareness in their field of expertise and making significant contributions to the mortgage loan modification, real estate finance and mortgage violation audit and analysis industry and the marketplace as a whole.
(Logo:  http://photos.prnewswire.com/prnh/20120207/LA48812LOGO)
American Loan Compliance (ALC), specializes in strategic mortgage compliance analysis and audit report services and has recently opened its doors to consumers allowing homeowners seeking mortgage assistance and loan modification to obtain these services direct. Viewed as America’s most knowledgeable, proven and experienced mortgage compliance auditing firms to correspondent lending institutions, federal banking associations, law firms, wholesale lenders and direct lending institutions across the country. American Loan Compliance will concentrate their efforts on helping the general population more effectively obtain accurate investigative mortgage audit reports and ensure clarification on enforceable loans. A very effective and experienced management team that is sure to make a huge impact in an industry with an ambiguous reputation in anxious need of assistance leads the dynamic force overseeing operational management at the private held company.
American Loan Compliance has shifted momentum, acting as a national strategic investigative analysis and enforcement management firm which provides professional, advisory, and consulting services to financial institutions, consumer protection, financial and regulatory agencies, including mortgage bankers, real estate attorneys, commercial and retail lending entities, and property owners. American Loan Compliance sets the standard in mortgage compliance in the United States providing a variety of audit reports no other firm has come close to close its competitive advantage in an ambiguous industry in demand for supplemental mortgage loan analysis and homeland assistance. The quality control behind closed doors, displays strategic expertise and addresses all critical areas associated with American mortgage loan compliance regulatory matters, observance and quality control in U.S. residential and commercial real estate mortgage finance. American Loan Compliance can assist clients in meeting the oversight of regulators, fair lending mandates and maintaining internal lending integrity and validation practices through independent quality control audit reports.
American Loan Compliance will provide you with the evidence and support you can trust to help you seek better loan modification terms, restructuring of new terms via loan workouts, principal/rate reductions, or continued discovery. With the greatest potential to alleviate “normal modification” setbacks and re-occurrence of default, qualified and objective evidence helps simplify negotiations and stay using the information and support provided by American Loan Compliance.
A 2009, FDIC Office of Inspector General Report revealed:
83% of the institutions examined were cited for “significant” compliance violations
43% of those institutions were “repeat offenders”
85% of those repeat offenders were highly rated by the FDIC for their in-place compliance process
The other importance of the mortgage loan audit findings is that it may be the grounds to help move a non-judicial foreclosure action (currently in 29 states), if necessary, into jurisdiction, which can stop foreclosure in its tracks. More importantly, borrowers regardless of financial hardship and payment history now have the chance for a better position to negotiate new terms or loan settlement. Violations found in a loan audit can help place the borrower in the offense! We at American Loan Compliance help legal professionals navigate through the process with our learning channels, which we find critical for those legal advisors that are looking to make the audit solution part of their business practice. Information is only as good as the ones that know how best to use it
The driving force behind American Loan Compliance consist of executive and management teams which include best-selling authors and speakers who are regularly sought out by the media to give expert opinions. Many have been featured on NBC, CNBC, CBS, ABC and FOX affiliates as well as seen in USA Today, Newsweek, Forbes, Market watch, Ask The Experts©, Los Angeles Business Journal and the Wall Street Journal. American Loan Compliance mission is homeland assistance from business to consumers, ensuring the most intelligent solutions and accurate analysis obtained via their flagship mortgage compliance analysis reports. Audit Reports allow the ability and vision to direct arbitration on residential and commercial mortgages and through strategic analysis ensure enforcement of mortgage loan modification and payment assistance at the best results attainable.
American Loan Compliance has collaborated with other established agencies and most recently, Homeland Assistance Agency based in Washington D.C. and the Federal Relief Organization based in Los Angeles. This collaboration of powerhouse agencies has vowed to allow consumers a unique option of working with trusted and proven sources as a one stop merger of industry experts to determine and proceed with their ultimate goals related to the property in distress, in need of assistance or available for more lucrative cash flow options.
American Loan Compliance is located in New York City, New York. Their corporate address is 1330 Avenue of the Americas, Floor 23A, New York City, NY 10019. For more information about American Loan Compliance, please visit http://www.AmericanLoanCompliance.com for consumer information. Please visit www.AmericanLoanCompliance.info for general information or call (888) 929-2829.

http://tourism9.com/    http://vkins.com/

DENVER–(BUSINESS WIRE)–
UDR, Inc. (NYSE: UDR – News), a leading multifamily real estate investment trust, today announced its fourth quarter and full year 2011 results.
The Company generated Funds from Operations (FFO) of $80.2 million or $0.35 per diluted share for the quarter ended December 31, 2011, as compared to $53.4 million or $0.28 per diluted share in the fourth quarter of 2010. Excluding all one-time items, the Company’s fourth quarter 2011 FFO-Core would have been $0.34 per diluted share. See the reconciliation below for further detail.
For the twelve-months ended December 31, 2011, UDR generated FFO of $1.28 per diluted share as compared to $1.09 per diluted share for the twelve-months ended December 31, 2010. Excluding all one-time items, the Company’s 2011 FFO-Core would have been $1.28 per diluted share. See the reconciliation below for further detail.

		Q4 2011				Q4 2010				YTD 2011				YTD 2010
FFO- Core per diluted share		$	0.34			$	0.28			$	1.28			$	1.13
Acquisition-related costs			(0.006	)			(0.001	)			(0.028	)			(0.016	)
JV financing and acquisition fee			0.004				0.005				0.011				0.006
Restructuring charges			(0.001	)			(0.035	)			(0.006	)			(0.038	)
Storm-related expenses			-				-				-				(0.004	)
Costs associated with debt extinguishment			(0.002	)			-				(0.021	)			(0.007	)
Gain on sale of assets/marketable securities			0.014				-				0.046				-
Other			-				0.025				-				0.027
FFO- Reported per diluted share		$	0.35			$	0.28			$	1.28			$	1.09

A reconciliation of FFO to GAAP Net Income can be found on Attachment 2 of the Company’s fourth quarter Supplemental Financial Information.
Tom Toomey, UDR’s President and CEO stated, “We are pleased with the progress we made in further transitioning our portfolio in 2011, including $1.2 billion of acquisitions in New York City, a $500 million asset exchange that increased our presence in San Francisco and the Boston metro area, the expansion of our development and redevelopment pipeline by over $800 million and the disposition of $594 million of non-core assets. These transactions improved the Company’s portfolio by increasing our ownership interests in markets characterized by above-average job growth, low home affordability, below-average new supply risk and superior revenue growth and return prospects.” Mr. Toomey continued, “Driven by sound market fundamentals, a more advantageous geographic and asset mix and our robust operating and technology platforms, 2012 will be another strong year for UDR. As a result, the Board of Directors has approved a 10% increase in our annual common stock dividend to $0.88 per share for 2012.”
Operations
Same-store net operating income increased 7.7 percent year-over-year for the fourth quarter 2011 while same-store revenue increased 5.3 percent over the same period. Same-store physical occupancy decreased 40 basis points to 95.1 percent as compared to the prior year period. Same-store expenses increased 0.5 percent driven by an increase in utilities costs and real estate taxes. The rate of turnover increased to an annualized rate of 50 percent from 47 percent in the fourth quarter of 2010.

Summary Same-Store Results Fourth Quarter 2011 versus Fourth Quarter 2010
Region		Revenue Growth/ Decline			Expense Growth/ Decline			NOI Growth/ Decline			% of Same- Store Portfolio¹			Same-Store Occupancy2			Number of Same-Store Homes3
Western		6.1	%		-2.1	%		10.1	%		38.0	%		94.6	%		11,801
Mid-Atlantic		4.6	%		1.5	%		5.9	%		30.4	%		95.8	%		10,130
Southeastern		4.6	%		3.6	%		5.2	%		23.3	%		94.9	%		12,272
Southwestern		6.2	%		-0.8	%		11.4	%		8.3	%		95.1	%		4,477
Total		5.3	%		0.5	%		7.7	%		100.0	%		95.1	%		38,680
1 Based on QTD 2011 NOI.
2 Average same-store occupancy for the quarter.
3 During the fourth quarter, 38,680 apartment homes, or approximately 82 percent of 47,343 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, the Company’s same-store NOI increased by 2.3 percent driven by increased revenues of 0.2 percent and a 3.9 percent decrease in same-store expenses during the fourth quarter of 2011.
For the twelve-months ended December 31, 2011, the Company’s same-store revenue increased 4.1 percent as compared to the prior year while expenses increased 1.4 percent, resulting in a same-store NOI increase of 5.6 percent as compared to the prior year period. Year-over-year occupancy decreased by 20 basis points to 95.5 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 Occupancy2			Number of Same-Store Homes3
Western		4.5	%		0.1	%		6.6	%		37.5	%		95.0	%		11,361
Mid-Atlantic		4.2	%		1.6	%		5.5	%		31.0	%		96.2	%		10,130
Southeastern		3.4	%		3.0	%		3.7	%		23.0	%		95.2	%		11,901
Southwestern		4.3	%		0.8	%		6.8	%		8.5	%		95.7	%		4,477
Total		4.1	%		1.4	%		5.6	%		100.0	%		95.5	%		37,869
1 Based on YTD NOI.
2 Average same-store occupancy for YTD 2011.
3 During 2011, 37,869 apartment homes, or approximately 80 percent of 47,343 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 has gained acceptance and recognition from our residents as shown by the following utilization rates:

Established Technology Initiatives:		December 2011			December 2010
Resident payments received via ACH		77	%		79	%
Service requests entered through MyUDR.com		79	%		79	%
Move-ins initiated via an internet source		57	%		62	%
Renewals completed electronically		86	%		81	%

Development and Redevelopment Activity
As previously announced during the fourth quarter of 2011, the Company acquired land for its Village at Bella Terra development project in Huntington Beach, CA. The newly started community is projected to include 467 homes, cost $150 million and be completed in the second quarter of 2013.
In addition, the Company acquired a land parcel adjacent to its Vitruvian Park^SM development in Addison, TX for $4.7 million and a land parcel adjacent to its Garrison Square community in the Boston metro area for $4.6 million.
Joint Venture Investment Activity
As previously announced on December 21, 2011, the Company and its joint venture partner Kuwait Finance House (“KFH”) acquired 1301 Thomas Circle in Washington, D.C. for $153.8 million. The 292-home apartment community is located in the Logan Circle neighborhood near the 14^th Street Corridor, is within minutes of the Mt. Vernon Square and McPherson Metro Stations and is near UDR’s wholly-owned Andover House community. The 10-story community was completed in 2006, is well-amenitized, has a 256-space parking garage and had an average monthly income per occupied home of $2,740 at the time of acquisition. Additional details related to the transaction can be found in the December 21, 2011 press release on the Company’s website at www.udr.com.
Following the purchase of 1301 Thomas Circle, there remained approximately $169 million of investment capacity under the terms of the joint venture agreement.
Disposition Activity
During the fourth quarter of 2011, the Company sold nine communities containing 2,331 homes for $275.4 million in total gross proceeds, bringing full-year 2011 asset dispositions to $593.9 million. At the time of the fourth quarter dispositions, total income per occupied home for the communities sold averaged $1,065 per month. The fourth quarter dispositions were located in a variety of markets including the Eastern Shore of Maryland, Raleigh, the East Bay area of San Francisco, the Inland Empire, San Diego, Houston and San Antonio.
Capital Markets Activity
During the fourth quarter of 2011, the Company completed a number of debt related activities aimed at managing its near term maturities and capital costs.
As previously announced, on October 25, 2011, the Company entered into a new $900 million unsecured revolving credit facility, replacing its prior $600 million facility. The new facility has an initial term of four years, includes a one-year extension option and contains an accordion feature that allows the Company to increase the facility to $1.35 billion.
Based on the Company’s credit ratings at the time of closing, the credit facility carried an interest rate equal to LIBOR plus a spread of 122.5 basis points and a facility fee of 22.5 basis points.
Coinciding with the closing of the new revolving credit facility, the Company amended and re-priced its $250 million unsecured term loan due in January 2016. The term loan was re-priced to LIBOR plus 142.5 basis points from LIBOR plus 200 basis points and its underlying covenants were aligned with those of UDR’s new revolving credit facility. Additional details related to these debt activities can be found in the October 25, 2011 press release on the Company’s website at www.udr.com.
In addition, the Company prepaid a $100.0 million secured mortgage at par in November. The mortgage had an interest rate of 6.78 percent and was originally due in May of 2012.
In the fourth quarter of 2011, the Company raised $15.5 million of equity through the sale of approximately 630 thousand shares at a weighted average net price of $24.67 per share under its “At the Market” equity offering program. In 2011, the Company raised a total of $989 million of equity from a combination of “At the Market” proceeds, a secondary offering completed in July and the issuance of operating partnership units.
Balance Sheet
At December 31, 2011, UDR had $738.7 million in availability through a combination of cash and undrawn capacity on its credit facilities. Potential sources of additional capital include the Company’s $5.0 billion of unencumbered assets (on a historical non-depreciated cost basis), 7.4 million shares available for issuance under its “At the Market” equity offering program in addition to $400 to $600 million in expected dispositions in 2012.
UDR’s total indebtedness at December 31, 2011 was $3.9 billion. The Company ended the fourth quarter with fixed-rate debt representing 73 percent of its total debt, a total blended interest rate of 4.0 percent and a weighted average maturity of 4.4 years. UDR’s fixed charge coverage ratio (adjusted for non-recurring items) was 2.6 times at year-end 2011 versus 2.3 times a year ago.
Post Quarter Activity
Joint Venture Investment Activity
On January 12, 2012, UDR formed a second real estate joint venture with MetLife (UDR/MetLife II) wherein each party owns a 50 percent interest in a $1.3 billion portfolio of 12 operating communities containing 2,528 apartment homes.
The 12 operating communities in the joint venture include seven communities from the Company’s first real estate joint venture with MetLife (UDR/MetLife I) formed on November 8, 2010, while the remaining five communities were newly acquired by UDR/MetLife II. The newly acquired communities, collectively known as Columbus Square, are recently developed, high-rise apartment buildings located on the Upper West Side of Manhattan and were purchased for $630 million. Additional details related to the transaction can be found in the January 12, 2012 press release on the Company’s website at www.udr.com.
With the closing of UDR/MetLife II, the original joint venture between the parties, UDR/MetLife I, now comprises 19 operating communities containing 3,930 homes as well as 10 vacant land parcels. Historical cost of the venture is $1.8 billion and the Company’s weighted average ownership interest in the UDR/MetLife I operating communities is now 12.6 percent and 4.0 percent for the land parcels in the venture.
Capital Markets Activity
On January 5, 2012, the Company priced a ten-year, $400 million offering of 4.625 percent senior unsecured notes under its existing shelf registration. The notes will mature on January 10, 2022. This offering fulfills the Company’s full-year 2012 guidance for $400 million in new debt issuances. A portion of this offering was used to repay $100 million of 5 percent unsecured debt originally due in January 2012. Additional details related to the transaction can be found in the January 5, 2012 press release on the Company’s website at www.udr.com.
In addition, the Company prepaid a $30.6 million mortgage at par in January 2012 that was secured by its 21 Chelsea community in Manhattan.
In January 2012, the Company raised $29.1 million of equity through the sale of approximately 1.2 million shares at a weighted average net price of $24.68 per share under its “At the Market” equity offering program.

2012 Guidance
Full year 2012 guidance is as follows:
		Range
FFO per diluted share		$1.37 to $1.43
Dividend per share		$0.88
Same-Store Metrics:		Range
Number of homes		38,680
Revenue growth		5.0% to 6.0%
Expense growth		3.0% to 3.5%
Net operating income growth		6.0% to 7.5%
G&A expenses ($M)		$32 to $34
Recurring capital expenditures		$1,150/stabilized home
Stabilized homes		47,545
Transactional Activity ($M):		Range		Completed(1)
Acquisitions		Market dependent
Dispositions		$400 to $600
Development spend		$400
Redevelopment spend		$100
Join venture investments, net		$290		$290
Financing Activity ($M):		Range		Completed(1)
Equity		Market dependent		$29
Debt		$400		$400
(1) As of February 6, 2012
FFO Per Share GAAP Reconciliation
All guidance is based on current expectations of future economic conditions and the judgment of the Company’s management team. The following is a reconciliation from forecasted FFO per share to GAAP net loss per share:
				Low		High
Forecasted 2012 FFO Guidance per Diluted Share				$1.37		$1.43
Conversion to GAAP Share Count				(0.09)		(0.09)
Depreciation				(1.78)		(1.78)
Non-Controlling Interests				0.01		0.01
Preferred Dividends				(0.02)		(0.02)
Forecasted 2012 GAAP Net Loss per Diluted Share				($0.51)		($0.45)

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 www.udr.com.
Conference Call and Webcast Information
UDR will host a webcast and conference call at 11:00 a.m. EST on February 6, 2012 to discuss fourth quarter results. A webcast will be available on UDR’s website at www.udr.com. 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 800-762-8779 for domestic and 480-629-9771 for international and provide the following conference ID number: 4501829.
A replay of the conference call will be available through February 20, 2012, by dialing 800-406-7325 for domestic and 303-590-3030 for international and entering the confirmation number, 4501829, when prompted for the pass code.
A replay of the call will be available for 90 days on UDR’s website at www.udr.com.
Full Text of the Earnings Report and Supplemental Data
Internet — The full text of the earnings report and Supplemental Financial Information will be available on the Company’s website at www.udr.com.
Mail — For those without Internet access, the fourth quarter 2011 earnings report and Supplemental Financial Information will be available by mail or fax, on request. To receive a copy, please call UDR Investor Relations at 720-348-7762.
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 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 ventures with KFH and 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 UDR’s analysis and conclusions and reflect UDR’s judgment as of the date of these materials. UDR assumes no obligation to revise or update to reflect future events or circumstances.
About UDR, Inc.
UDR, Inc. (NYSE: UDR), 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 December 31, 2011, UDR owned or had an ownership position in 60,465 apartment homes including 2,626 homes under development. For over 39 years, UDR 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 www.udr.com.

Attachment 1
UDR, Inc.
Consolidated Statements of Operations
(Unaudited)
		Three Months Ended				Twelve Months Ended
		December 31,				December 31,
In thousands, except per share amounts		2011		2010		2011		2010
Rental income		$ 187,999		$ 152,396		$ 691,263		$ 574,084
Rental expenses:
Real estate taxes and insurance		22,776		18,376		84,007		70,762
Personnel		15,076		13,445		56,617		51,696
Utilities		10,248		7,946		37,405		31,564
Repair and maintenance		9,843		8,571		37,155		32,386
Administrative and marketing		4,227		3,964		15,411		14,643
Property management		5,169		4,191		19,009		15,788
Other operating expenses		1,580		1,465		5,990		5,773
		68,919		57,958		255,594		222,612
Non-property income:
Loss from unconsolidated entities		(2,092)		(1,447)		(6,352)		(4,204)
Gain on sale of investments		1,396		4,725		7,069		4,725
Interest and other income (1)		3,406		2,049		10,353		7,777
		2,710		5,327		11,070		8,298
Other expenses:
Real estate depreciation and amortization		97,975		74,842		356,011		275,615
Interest		39,030		35,432		151,144		140,869
Amortization of convertible debt premium		-		776		1,077		1,204
Other debt charges (2)		550		83		4,602		3,530
Total interest		39,580		36,291		156,823		145,603
Acquisition-related costs		57		186		4,828		2,865
Severance charges		317		6,803		1,342		6,803
General and administrative		5,747		10,597		35,440		39,845
Other depreciation and amortization		919		1,088		3,931		4,843
		144,595		129,807		558,375		475,574
Loss from continuing operations		(22,805)		(30,042)		(111,636)		(115,804)
Income from discontinued operations		70,923		725		132,221		9,216
Consolidated net income/(loss)		48,118		(29,317)		20,585		(106,588)
Net (income)/loss attributable to non-controlling interests		(1,620)		861		(562)		3,689
Net income/(loss) attributable to UDR, Inc.		46,498		(28,456)		20,023		(102,899)
Distributions to preferred stockholders – Series E (Convertible)		(931)		(932)		(3,724)		(3,726)
Distributions to preferred stockholders – Series G		(1,377)		(1,437)		(5,587)		(5,762)
(Premium)/discount on preferred stock repurchases, net		-		-		(175)		25
Net income/(loss) attributable to common stockholders		$ 44,190		$ (30,825)		$ 10,537		$ (112,362)
Earnings/(loss) per weighted average common share – basic and diluted:
Loss from continuing operations available to common stockholders		($0.12)		($0.17)		($0.60)		($0.73)
Income from discontinued operations		$0.33		$0.00		$0.66		$0.06
Net Income/(loss) attributable to common stockholders		$0.20		($0.17)		$0.05		($0.68)
Common distributions declared per share		$0.2150		$0.185		$0.800		$0.730
Weighted average number of common shares outstanding – basic and diluted		217,823		180,743		201,294		165,857
(1) Includes $3.2 million and $1.7 million of management fees from joint ventures during the three months ended December 31, 2011 and 2010 and $9.6 million and $3.2 million during the twelve months ended December 31, 2011 and 2010.
(2) Write-off of deferred financing costs on early debt extinguishment, including $0 and $599 write-off of convertible debt premium for the three and twelve months ended December 31, 2010.

Attachment 2
UDR, Inc.
Funds From Operations
(Unaudited)
		Three Months Ended				Twelve Months Ended
		December 31,				December 31,
In thousands, except per share amounts		2011		2010		2011		2010
Net income/(loss) attributable to UDR, Inc.		$ 46,498		$ (28,456)		$ 20,023		$ (102,899)
Distributions to preferred stockholders		(2,308)		(2,369)		(9,311)		(9,488)
Real estate depreciation and amortization, including discontinued operations		98,513		81,922		370,343		303,446
Non-controlling interests		1,620		(861)		562		(3,689)
Real estate depreciation and amortization on unconsolidated joint ventures		2,983		2,323		11,631		5,698
Net gain on the sale of depreciable property in discontinued operations, excluding RE3		(68,045)		(49)		(123,217)		(4,048)
(Premium)/discount on preferred stock repurchases, net		-		-		(175)		25
Funds from operations (“FFO”) – basic		$ 79,261		$ 52,510		$ 269,856		$ 189,045
Distribution to preferred stockholders – Series E (Convertible)		931		932		3,724		3,726
Funds from operations – diluted		$ 80,192		$ 53,442		$ 273,580		$ 192,771
FFO per common share – basic		$ 0.35		$ 0.28		$ 1.29		$ 1.10
FFO per common share – diluted		$ 0.35		$ 0.28		$ 1.28		$ 1.09
Weighted average number of common shares and OP Units outstanding – basic		227,248		186,041		208,896		171,569
Weighted average number of common shares, OP Units, and common stock equivalents outstanding – diluted		232,405		191,651		214,086		176,900
FFO is defined as net income (computed in accordance with GAAP), excluding impairment write-downs of depreciable real estate or of investments in non-consolidated investees that are driven by measurable decreases in the fair value of depreciable real estate held by the investee, 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 2002. UDR 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 UDR’s activities in accordance with generally accepted accounting principles and is not necessarily indicative of cash available to fund cash needs.
RE3 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 RE3 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.

Attachment 3
UDR, Inc.
Consolidated Balance Sheets
		December 31,				December 31,
In thousands, except share and per share amounts		2011				2010
		(unaudited)				(audited)
ASSETS
Real estate owned:
Real estate held for investment		$	7,825,725			$	6,198,667
Less: accumulated depreciation			(1,831,157	)			(1,505,626	)
			5,994,568				4,693,041
Real estate under development
(net of accumulated depreciation of $570 and $0)			248,176				97,912
Real estate held for disposition
(net of accumulated depreciation of $0 and $132,700)			-				452,068
Total real estate owned, net of accumulated depreciation			6,242,744				5,243,021
Cash and cash equivalents			12,503				9,486
Marketable securities			-				3,866
Restricted cash			24,634				15,447
Deferred financing costs, net			30,068				27,267
Notes receivable			-				7,800
Investment in unconsolidated joint ventures			213,040				148,057
Other assets			198,365				74,596
Total assets		$	6,721,354			$	5,529,540
LIABILITIES AND STOCKHOLDERS’ EQUITY
Secured debt		$	1,891,553			$	1,808,746
Secured debt – real estate held for disposition			-				154,924
Unsecured debt			2,026,817				1,603,834
Real estate taxes payable			13,397				14,585
Accrued interest payable			23,208				20,889
Security deposits and prepaid rent			35,516				26,046
Distributions payable			51,019				36,561
Deferred fees and gains on the sale of depreciable property			29,100				28,943
Accounts payable, accrued expenses, and other liabilities			95,485				105,925
Total liabilities			4,166,095				3,800,453
Redeemable non-controlling interests in operating partnership			236,475				119,057
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
219,650,225 shares issued and outstanding (182,496,330 shares at December 31, 2010)			2,197				1,825
Additional paid-in capital			3,340,470				2,450,141
Distributions in excess of net income			(1,142,895	)			(973,864	)
Accumulated other comprehensive loss, net			(13,902	)			(3,469	)
Total stockholders’ equity			2,314,050				1,606,343
Non-controlling interest			4,734				3,687
Total equity			2,318,784				1,610,030
Total liabilities and stockholders’ equity		$	6,721,354			$	5,529,540

http://tourism9.cm/    http://vkins.com/