Summary:
In this article, UDR Inc., a leading multifamily real estate investment trust (REIT) has just announced some very good news for its own company. Some history of theirs is that as of December 31, 2008, they owned 44,388 apartment homes, 2,242 homes under development and 289 under contract for development. Now that is quite impressive let alone the fact that they have been giving shareholders, residents, and associates the best service possible. They were able to claim a $200 million note receivable on May 4, 2009 due to the sale of their portfolio. The contents of their 2008 March portfolio was 86 communities which came to a total of $1.7 billion including the note receivable. That is not all though, on top of the $200 million, there is a 7.5% interest rate per annum. UDR Inc. decided that they would like to put all this money to fund general corporate obligations.
Connections:
Although the length of this article is not very professional, it still links in with Chapter 6 in our text. The term "note receivable" is a section in this chapter and the entire article is discussing how UDR Inc.'s as a company is affected by the note receivable. The term is one we are not too familiar with but is actually quite simple as it is almost exactly the same as an account receivable except for the fact that it is more formal. There are types of note receivables as well but only two potential choices can match the type in this article. The promissary note or the discounted note. Again, another connection because the type of note is very important and has to be broken down further into one of these two in order to properly classify it. Honestly, there is not enough information to notify us of which of the two notes it is but the connection is still there. One last point is that note receivables are now going to be a more common thing to see now and we must be prepared for it. Therefore, this article gives us a broad understanding of the new term "note receivable" which will aid us later in the chapter.
Personal Reflection:
My feelings towards all this "action" in UDR Inc. are positive as I support this company in what they are doing and hope they are able to achieve even greater things in the future. A deal of $200 million plus interest on top of it, that is simply wonderful. This is proof of how they are performing as a whole. Their background is strong and I am sure they are going to make their future even stronger. Real estate is something that is not doing to well at the moment due to the economy and all but seeing that a company like UDR Inc. can look past it and succeed gives me a good feeling of things being able to get back on track. I enjoyed reading this article for a couple of reasons, the most obvious of course is its length but also the fact it presented a new term that we have only looked at briefly in the past. All in all, I feel good about UDR Inc., wish them the best and am ready to take on the challenge of learning and understanding new terms (note receivable).
- Jason K.
