UDR, Inc. (the "Company") (NYSE: UDR), a leading multifamily real estate investment trust, today announced an update regarding the impact of Hurricane Sandy on its lower Manhattan communities, 10 Hanover Square, 95 Wall and Rivergate.
10 Hanover Square and Rivergate are operational and have been re-occupied with limited services. The Company expects that 95 Wall will be operational and re-occupied by Friday, November 16, 2012.
On November 1, 2012, two days after Hurricane Sandy, the Company issued a preliminary damage estimate of $11 to $14 million, based on the expectation that primary building systems in the Company’s lower Manhattan communities would be minimally affected and electricity and steam would return after a few days. Following inspections of these building systems with representatives from the Company’s insurance providers as well as the completion of initial repairs, the estimate of the damage increased. As a result, total damages are now expected to be $28 to $32 million.
The Company carries insurance for flood damage and business interruptions and its Sandy-related deductible will be approximately $1.5 million. While the Company believes it is entitled to reimbursement for all of its costs and lost revenue, the timing and ultimate amount of recovery will not be known until a later date. As a result, the Company expects to record a charge of $0.03 to $0.04 per diluted share in the fourth quarter.
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® development, expectations concerning the joint ventures with third parties, 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 September 30, 2012, UDR owned or had an ownership position in 54,985 apartment homes including 2,441 homes under development. For 40 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.