Noncontrolling Interests

6 Months Ended

Jun. 30, 2011

9. NONCONTROLLING INTERESTS

Redeemable noncontrolling interests in operating partnerships

Interests in operating partnerships held by limited partners are represented by operating partnership units (“OP Units”). The income is allocated to holders of OP Units based upon net income attributable to common stockholders and the weighted average number of OP Units outstanding to total common shares plus OP Units outstanding during the period. Capital contributions, distributions, and profits and losses are allocated to non-controlling interests in accordance with the terms of the individual partnership agreements.

Limited partners have the right to require the Operating Partnership to redeem all or a portion of the OP Units held by the limited partner at a redemption price equal to and in the form of the Cash Amount as defined in the limited partnership agreement of the Operating Partnership (the “Partnership Agreement”), provided that such OP Units have been outstanding for at least one year. UDR, as the general partner of the Operating Partnership may, in its sole discretion, purchase the OP Units by paying to the limited partner either the Cash Amount or the REIT Share Amount (generally one share of common stock of the Company for each OP Unit), as defined in the Partnership Agreement. Accordingly, the Company records the OP Units outside of permanent equity and reports the OP Units at their redemption value using the Company’s stock price at each balance sheet date.

The following table sets forth redeemable noncontrolling interests in the Operating Partnership for the following period (dollars in thousands):


Redeemable noncontrolling interests in the OP, December 31, 2010	$	119,057
Mark to market adjustment to redeemable noncontrolling interests in the OP		9,212
Conversion of OP Units to Common Stock		(48	)
Net loss attributable to redeemable noncontrolling interests in the OP		(611	)
OP units issued for partial consideration in community acquisition		62,879
Distributions to redeemable noncontrolling interests in the OP		(2,951	)
Allocation of other comprehensive (loss)/income		(229	)


Redeemable noncontrolling interests in the OP, June 30, 2011	$	187,309

The following sets forth net loss attributable to common stockholders and transfers from redeemable noncontrolling interests in the Operating Partnership for the following periods (dollars in thousands):


	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011			2010
Net income/(loss) attributable to common stockholders	$	12,149	$	(28,968	)	$	(18,094	)	$	(55,403	)
Conversion of OP units to UDR Common Stock		48		336			48			551


Change in equity from net (loss)/income attributable to common stockholders and conversion of OP units to UDR Common Stock	$	12,197	$	(28,632	)	$	(18,046	)	$	(54,852	)

Non-controlling interests

Non-controlling interests represent interests of unrelated partners in certain consolidated affiliates, and is presented as part of equity in the Consolidated Balance Sheets since these interests are not redeemable. During the three and six months ended June 30, 2011 and 2010, net income attributable to non-controlling interests was $37,000 and $88,000 and $45,000 and $80,000, respectively.

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

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