SEC Form 4 · accession 0000074208-17-000026
UDR, Inc. · UDR
Statement of changes in beneficial ownership, as filed. Original on EDGAR ↗
Reporting owner
Harry G Alcock
Officer — SVP-Chief Investment Officer
Period of report
Feb 2, 2017
Accepted (ET)
Feb 6, 2017 · 5:43 pm EST
Rule 10b5-1 plan
unknown — predates the checkbox
Issuer CIK
0000074208
Table I — non-derivative securities
| Security | Date | Code | Shares | Price | A/D | Owned after | D/I | Nature of ownership |
|---|---|---|---|---|---|---|---|---|
| Common Stock | Feb 2, 2017 | A | 16,032 | $0.00 | A | 120,246 | D | |
| Common Stock | Feb 2, 2017 | A | 10,980 | $0.00 | A | 131,226 | D | |
| Common StockF2 | Feb 2, 2017 | A | 8,579 | $34.97 | A | 139,805 | D | |
| Common Stock | Feb 2, 2017 | F | 2,675 | $34.97 | D | 137,130 | D | |
| Common Stock | Feb 2, 2017 | F | 7,468 | $34.97 | D | 129,662 | D | |
| Common Stock | Feb 3, 2017 | F | 4,499 | $34.66 | D | 125,163 | D |
Table II — derivative securities
| Security | Conv. / exercise price | Date | Code | Shares | A/D | Exercisable | Expires | Underlying | Underlying shares | Owned after | D/I |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Class 2 LTIP UnitsF4,F8,F9,F10,F5,F6,F7 | — | Feb 2, 2017 | D | 2,608 | D | — | — | Common Stock | 2,608 | 104,885 | D |
Explanation of responses
- F1Subject to the reporting person's continued employment, one half of the award is vested upon the date of grant and one half vests one year from the date of grant.
- F10Amount represents the portion of the award (including dividends) forfeited when performance results were determined for the applicable portion of the award on February 2, 2017.
- F2Subject to the reporting person's continued employment, the grant vests in equal installments over 3 years from the grant date.
- F3Represents shares of restricted stock withheld to satisfy the reporting person's tax withholding obligation upon vesting of restricted stock. The deemed disposition of the withheld shares is exempt pursuant to Rule 16b-3(e).
- F4Represents Class 2 LTIP Units in United Dominion Realty, L.P., a Delaware limited partnership (the "UDR Partnership"). UDR, Inc. (the "Company") is the parent company and sole general partner of the UDR Partnership.
- F5Subject to the conditions set forth in the Ninth Amendment to the Amended and Restated Agreement of Limited Partnership of the UDR Partnership and subject to the vesting conditions specified with respect to each Class 2 LTIP Unit (as described in footnotes 8 and 9 below), each Class 2 LTIP Unit may be converted, at the election of the holder, into a unit of limited partnership of the UDR Partnership (a "Partnership Common Unit"), provided that such Class 2 LTIP Unit has been outstanding for at least two years from the date of grant.
- F6A holder of Partnership Common Units has the right to require the UDR Partnership to redeem all or a portion of the Partnership Common Units held by the holder in exchange for a cash payment based on the market value of the Company's Common Stock at the time of redemption, as defined in the Amended and Restated Agreement of Limited Partnership of the UDR Partnership (the "Cash Amount"). However, the UDR Partnership's obligation to pay the Cash Amount is subject the prior right of the Company to acquire such Partnership Common Units in exchange for either the Cash Amount or shares of the Company's Common Stock, as described in footnote 7 below.
- F7The Company, as the general partner of the UDR Partnership, may, in its sole discretion, purchase the Partnership Common Units by paying the limited partner either the Cash Amount or the REIT Share Amount (generally one share of the Company's Common Stock for each Partnership Common Unit), as such terms are defined in the Amended and Restated Agreement of Limited Partnership of the UDR Partnership. The right to convert the Class 2 LTIP Units into Partnership Common Units and the right to receive the Cash Amount or the REIT Share Amount (in the Company's sole discretion) in exchange for Partnership Common Units do not have expiration dates.
- F8The Class 2 LTIP Units will vest only to the extent that pre-established performance metrics are met for the applicable performance period, subject to continuing employment. Except as otherwise set forth in the UDR, Inc. 1999 Long-Term Incentive Plan, as amended from time to time, except Section 14.9 thereof, the Amended and Restated Agreement of Limited Partnership of the UDR Partnership, or as determined by the Committee, in its sole discretion, vesting of the Class 2 LTIP Units shall cease upon the date of termination for any reason, and no unvested Class 2 LTIP Units shall thereafter become vested.
- F9The vesting of one-third of the Class 2 LTIP Units is determined based on the achievement of pre-determined FFO as Adjusted goals over a one-year period, with 50% of the award vesting on the determination date and 50% on the first anniversary of the determination date, while the vesting of two-thirds of the Class 2 LTIP Units will be determined based on the Company's relative total shareholder return ("TSR") as compared to an apartment peer group over a three-year performance period, with that entire portion of the award vesting on the determination date.