Secured Debt

6 Months Ended

Jun. 30, 2011

Debt Disclosure [Abstract]

SECURED DEBT

6. SECURED DEBT

Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. For purposes of classification of the following table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument. Secured debt, including debt related to real estate held for sale, which encumbers $3.1 billion or 42.2% of UDR’s total real estate owned based upon gross book value ($4.2 billion or 57.8% of UDR’s real estate owned based on gross book value is unencumbered) consists of the following as of June 30, 2011 (dollars in thousands):

					Six Months Ended June 30, 2011
	Principal Outstanding				Weighted			Weighted		Number of
	June 30,		December		Average			Average		Communities
	2011		2010		Interest Rate			Years to Maturity		Encumbered
Fixed Rate Debt
Mortgage notes payable	$	564,129	$	292,236		4.95	%		4.0		10
Tax-exempt secured notes payable		—		13,325		N/A			—		—
Fannie Mae credit facilities		895,920		897,318		5.32	%		5.9		14
Total fixed rate secured debt		1,460,049		1,202,879		5.18	%		5.2		24
Variable Rate Debt
Mortgage notes payable		177,201		405,641		1.94	%		2.6		8
Tax-exempt secured note payable		94,700		94,700		0.83	%		11.1		2
Fannie Mae credit facilities		260,451		260,450		1.61	%		4.6		32
Total variable rate secured debt		532,352		760,791		1.58	%		5.1		42
Total secured debt	$	1,992,401	$	1,963,670		4.22	%		5.1		66

UDR has five secured credit facilities with Fannie Mae with an aggregate commitment of $1.4 billion at June 30, 2011. The Fannie Mae credit facilities are for an initial term of 10 years, bear interest at floating and fixed rates, and certain variable rate facilities can be extended for an additional five years at our option. We have $895.9 million of the outstanding balance fixed at a weighted average interest rate of 5.32% and the remaining balance on these facilities is currently at a weighted average variable interest rate of 1.61%.

	June 30, 2011			December 31, 2010
	(dollar amounts in thousands)
Borrowings outstanding	$	1,156,371		$	1,157,768
Weighted average borrowings during the period ended		1,156,957			1,198,771
Maximum daily borrowings during the period ended		1,157,557			1,209,739
Weighted average interest rate during the period ended		4.5	%		4.6	%
Weighted average interest rate at the end of the period		4.5	%		4.5	%

The Company will from time to time acquire properties subject to fixed rate debt instruments. In those situations, management will record the secured debt at its estimated fair value and amortize any difference between the fair value and par to interest expense over the life of the underlying debt instrument. The unamortized fair market adjustment was a net premium of $21.5 million and $694,000 at June 30, 2011 and December 31, 2010, respectively.

Fixed Rate Debt

Mortgage notes payable. Fixed rate mortgage notes payable are generally due in monthly installments of principal and interest and mature at various dates from August 2011 through May 2019 and carry interest rates ranging from 1.93% to 6.60%. Mortgage notes payable includes debt associated with development activities.

Secured credit facilities. At June 30, 2011, the Company had $895.9 million outstanding of fixed rate secured credit facilities with Fannie Mae with a weighted average fixed interest rate of 5.32%.

Variable Rate Debt

Mortgage notes payable. Variable rate mortgage notes payable are generally due in monthly installments of principal and interest and mature at various dates from August 2011 through April 2016. The mortgage notes payable are based on LIBOR plus some basis points, which translate into interest rates ranging from 0.93% to 3.45% at June 30, 2011.

Tax-exempt secured notes payable. The variable rate mortgage notes payable that secure tax-exempt housing bond issues mature at various dates from August 2019 and March 2030. Interest on these notes is payable in monthly installments. The variable mortgage notes have interest rates ranging from 0.77% to 0.86% as of June 30, 2011.

Secured credit facilities. At June 30, 2011, the Company had $260.5 million outstanding of variable rate secured credit facilities with Fannie Mae with a weighted average floating interest rate of 1.61%.

The aggregate maturities, including amortizing principal payments, of our secured debt due during each of the next five calendar years and thereafter are as follows (dollars in thousands):

	Fixed				Variable
	Mortgage		Credit		Mortgage		Tax-Exempt		Credit		Total
Year	Notes		Facilities		Notes		Notes Payable		Facilities		Secured
2011	$	42,281	$	1,411	$	41,430	$	—	$	39,513	$	124,635
2012		61,610		177,944		1,053		—		59,529		300,136
2013		16,511		38,631		53,181		—		—		108,323
2014		73,316		3,328		36,076		—		—		112,720
2015		193,177		3,522		16,415		—		—		213,114
Thereafter		177,234		671,084		29,046		94,700		161,409		1,133,473
Total	$	564,129	$	895,920	$	177,201	$	94,700	$	260,451	$	1,992,401