In the second quarter of 2012, core FFO per share of $0.33 increased by 3% year-over-year. Strong year-over-year same-store revenue and net operating income growth of 5.6% and 6.7% respectively, as well as solid execution in our non-same-store portfolio, drove the improvement. Offset by dilution from our late May secondary equity offering. Second, a business plan update. Creating shareholder value remains our top priority.

As such we will continue to focus on growing NAV per share and on increasing our cash flow per share, which in turn supports dividend growth. Increasing top line growth and expanding operating margins are low risk, insistent generators of NAV growth per share. Our strong operating platform has historically been one of UDRs hallmarks and we expect will continue to be our primary driver of NAV creation moving forward.

Capital allocation is the second variable in NAV growth equation. Over the past few years our portfolio quality and footprint has improved dramatically, primarily the result of purposeful repositioning into coastal gateway markets, while simultaneously selling suburban locations and non-core markets. Some comments with regard to these activities.

First, acquisition activity. We intend to further expand our presence in our core markets over time. Markets that exhibit above average job growth, low home affordability, a high propensity to rent and limited new multifamily supply pressures. The capitalization of any future acquisition will be determined in the context of a lower leveraged operating model, but currently there are limited number of deals that fit our acquisition criteria.

Second, disposition activity. We are on a number of communities located in non-core markets, but not all non-core markets are equivalent in our view. Let me break them down. We have several markets that do not fit our long-term operating plan and we intend to exit them over the next 12 to 18 months. Combined, these markets represent $200 million to $400 million of value, minimal when compared to our total enterprise value.

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