UDR (UDR) 8-K United Dominion Realty Trust, Inc. Announces First Quarter 2006 Results

Exhibit 99.1

For details contact:
Larry Thede
Phone (720)283-2450
E-mail:ir@udrt.com
www.udrt.com

PRESS RELEASE
For Immediate Release

UNITED DOMINION REALTY TRUST, INC. ANNOUNCES
FIRST QUARTER 2006 RESULTS

RICHMOND, VA. (April 24, 2006) United Dominion Realty Trust, Inc. (NYSE: UDR) today reported Funds From Operations (“FFO”) of $61.5 million for the quarter ended March 31, 2006, compared to FFO of $57.9 million for the same period a year ago. The results produced FFO per share of $0.42 per share (diluted), a 7.7% increase from FFO of $0.39 per share (diluted), for the same period a year ago.

“We delivered robust same community operating performance in the first quarter; achieving 6.3% revenue growth and 6.6% net operating income growth compared to last year. These are our strongest results in over five years,” stated Thomas W. Toomey, President and Chief Executive Officer. “This was our ninth consecutive quarter of sequential same store revenue growth. Pricing power is clearly on our side as demonstrated by our 5.6% increase in total income per home and 26% reduction in concessions. In addition to our solid operating performance, I am pleased with the success of our condo conversion business and that our development and rehab activity has continued to grow. In addition to closing on the sale of 181 condominiums in the first quarter, we placed another 153 condos under contract. This month we entered into a joint venture contract with national apartment developer JPI and our total development pipeline currently exceeds 2,200 homes at a budgeted cost of $339 million. Finally, we have 2,943 homes undergoing rehabs at a budgeted cost of $97 million.”

First Quarter Highlights

• Achieved same store occupancy of 94.8%, up from 94.2% in the first quarter of 2005.

• Recorded total income per occupied home of $852 per month, the highest level in the company’s history.

• Registered the ninth consecutive quarter of positive sequential same store revenue growth.

• Re-priced 27% of the Company’s leases at an average monthly increase of $35 per lease, with March being the strongest month at $48 per lease.

• Completed 1,550 kitchen and bath rehabs, representing an investment of $14.1 million.

• Sold 181 condominium homes for $36.4 million, realizing an after-tax gain of $8.5 million. The sales represent an after-tax cap rate of 3.3%

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Portfolio Operating Performance and Same Community Results

										% of Total
										Portfolio			Total Same
	Revenue			Expense						Based On			Community
Region	Growth			Growth			NOI Growth			1Q06 NOI			Homes
Mid-Atlantic		4.7	%		6.1	%		4.0	%		29.1	%		18,026
Western		8.5			1.8			12.1			28.6			12,835
Southeastern		7.6			6.5			8.3			22.4			15,641
Southwestern		4.7			8.0			2.2			16.8			16,830
Midwestern		4.2			8.3			1.3			3.1			2,974
Total		6.3	%		5.7	%		6.6	%		100.0	%		66,306

During the first quarter, 66,306 apartment homes, or 88% of total apartment homes were classified as Same Community. The Company defines Same Community as all multifamily communities owned and stabilized for at least one year as of the beginning of the most recent quarter.

Same Community Results, Year/Year
($ in thousands, except collections and total income per occupied home)

	1st Qtr '06			1st Qtr '05			% Change
Rent and other income	$	163,840		$	155,226			5.5	%
Concessions		2,835			3,836			-26.1	%
Bad debt		306			204			50.0	%
Total income		160,699			151,186			6.3	%
Expenses		60,839			57,532			5.7	%
Net operating income		99,860			93,654			6.6	%
Collections per occupied home	$	816		$	775			5.3	%
Total income per occupied home	$	852		$	807			5.6	%
Avg. physical occupancy		94.8	%		94.2	%	60 bps
Operating margin		62.1	%		61.9	%	20 bps
Resident credit loss, % of effective rent		0.2	%		0.1	%	10 bps

Comparing first quarter 2006 to first quarter 2005, on a Same Community basis, 89% of the portfolio generated positive revenue growth and 77% of the portfolio generated positive NOI growth.

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Same Community Results, Quarter/Quarter
($ in thousands, except collections and total income per occupied home)

	1st Qtr '06			4th Qtr '05			% Change
Rent and other income	$	163,840		$	161,985			1.1	%
Concessions		2,835			3,060			-7.4	%
Bad debt		306			737			-58.5	%
Total income		160,699			158,188			1.6	%
Expenses		60,839			60,419			0.7	%
Net operating income		99,860			97,769			2.1	%
Collections per occupied home	$	816		$	803			1.6	%
Total income per occupied home	$	852		$	838			1.7	%
Avg. physical occupancy		94.8	%		94.9	%	-10 bps
Operating margin		62.1	%		61.8	%	30 bps
Resident credit loss, % of effective rent		0.2	%		0.5	%	-30 bps

Comparing first quarter 2006 to fourth quarter 2005, on a Same Community basis, 71% of the portfolio generated positive revenue growth and 60% of the portfolio generated positive NOI growth.

Portfolio Repositioning

During the first quarter, the Company acquired a 160 home apartment community in Plano, Texas for a total purchase price of $9.7 million or $60,690 per home. The transaction was completed at a 6.2% cap rate using forward twelve months of operations and a reserve for capital expenditures of $510 per home. The property is adjacent to an existing United Dominion community. The Company intends to upgrade the homes with new kitchens and baths.

Condominium Activity

In the first quarter, the Company sold 181 condominiums for an after-tax gain of $8.5 million. The sales represent an after tax cap rate of 3.3%. Another 153 homes are currently under contract. The Company’s 2006 original guidance was to sell 425 to 525 condominiums for an after-tax FFO contribution of $14.5 to $18 million or $0.10 to $0.12 per share.

Earnings Guidance

The Company believes that financial results for 2006 will be affected by international, national and regional economic trends and events, the acquisition and/or disposition of apartment communities, portfolio repositioning, financing activities, and other factors. The Company’s guidance for second quarter 2006 FFO is $0.42 to $0.44 per share (diluted) and $1.63 to $1.73 per share (diluted) for the full year 2006. All guidance is based on the current expectations and judgment of the Company’s management team.

Detailed assumptions for the Company’s 2006 guidance can be found on our website at:
http://media.corporate-ir.net/media_files/irol/11/112440/guidance/guidance.pdf

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A reconciliation of the range provided for projected 2006 FFO per share for the full year to Earnings Per Share (“EPS”) for the full year is as follows:

	2006
Funds From Operations(1)	$	1.73		$	1.63
Conversion to GAAP Share Count (2)		0.16			0.15
Minority Interest of OP Unit Holders (2)		(0.03	)		(0.05	)
Depreciation (3)		(1.70	)		(1.65	)
Gains (3)		0.50			0.70
Preferred Dividends		(0.09	)		(0.09	)
Expected Earnings Per Share	$	0.57		$	0.69

(1) The National Association of Real Estate Investment Trusts (“NAREIT”) defines funds from operations (“FFO”) (April 2002 White Paper) as net income (computed in accordance with accounting principles generally accepted in the United States (GAAP)), excluding gains (or losses) from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company believes that FFO is helpful to investors as a supplemental measure of the operating performance of a real estate company because it provides investors an understanding of the ability of the Company to incur and service debt and to make capital expenditures. FFO in and of itself does not represent net income or net cash flows from operating activities in accordance with GAAP. Therefore, FFO should not be exclusively considered as an alternative to net income or to net cash flows from operating activities as determined by GAAP or as a measure of liquidity.

(2) Operating Partnership units are not considered to be common stock equivalents for GAAP purposes.

(3) Due to the uncertain timing and extent of property dispositions and acquisitions, actual results could differ materially from expected EPS.

Supplemental Information

The Company offers Supplemental Information that provides information regarding the financial position and operating results of the Company. This Supplemental Information is available on the Company’s website at:
http://www.udrt.com/resources/files/Investor_Relations/1Q2006.pdf

Conference Call Information

Date: April 25, 2006
Time: 1:00 p.m. Eastern Time
To Participate in the Telephone Conference Call:
Domestic: 800-218-0530
International: 303-262-2193
If you have any questions, please contact:
Gloria Price: 720-283-6132
E-mail:gprice@udrt.com

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Conference Call Playback:
Domestic: 800-405-2236
International: 303-590-3000
Passcode: 11056418#
The playback can be accessed through May 2, 2006.

Webcast:
The conference call will also be available on UDR’s website atwww.udrt.com and atwww.ccbn.com. To listen to a live broadcast, go to one of these sites at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay will also be available for 90 days on UDR’s website and also on CCBN’s website.

About United Dominion Realty Trust, Inc.

United Dominion is the fourth largest apartment REIT, owning and operating apartment communities nationwide. The Company has raised the dividend each of the last 30 years. United Dominion is included in the S&P MidCap 400 Index. At March 31, 2006, the Company owned 75,223 apartment homes and had 1,335 homes under development. Additional information about United Dominion may be found on its Web site at www.udrt.com.

Statements contained in this press release, which are not historical facts, are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the Company’s use of words such as, “expects,” “plans,” “estimates,” “projects,” “intends,” “believes,” and similar expressions that do not relate to historical matters. Such forward-looking statements are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated, due to a number of factors, which include, but are not limited to, unfavorable changes in the apartment market, changing economic conditions, the impact of competition and competitive pricing, acquisitions or new developments not achieving anticipated results, delays in completing developments and lease-ups on schedule, difficulties in selling existing apartment communities, and other risk factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time including the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q. All forward-looking statements in this press release are made as of today, based upon information known to management as of the date hereof. The Company assumes no obligation to update or revise any of its forward-looking statements even if experience or future changes show that indicated results or events will not be realized.

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Attachment 1

UNITED DOMINION REALTY TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended
	March 31,
In thousands, except per share amounts	2006			2005
Rental income	$	176,810		$	158,636
Rental expenses:
Real estate taxes and insurance		23,232			19,172
Personnel		17,306			15,969
Utilities		11,283			9,571
Repair and maintenance		10,300			9,835
Administrative and marketing		5,423			5,570
Property management		4,991			4,813
Other operating expenses		298			290
		72,833			65,220
Non-property income:
Sale of technology investment		—			12,306
Other income		1,178			618
		1,178			12,924
Other expenses:
Real estate depreciation and amortization		57,397			48,566
Interest		44,094			38,572
General and administrative		6,764			7,000
Loss on early debt retirement		—			6,644
Other depreciation and amortization		704			652
		108,959			101,434
(Loss)/income before minority interests and discontinued operations		(3,804	)		4,906
Minority interests of outside partnerships		(16	)		(58	)
Minority interests of unitholders in operating partnerships		468			(59	)
(Loss)/income before discontinued operations, net of minority interests		(3,352	)		4,789
Income from discontinued operations, net of minority interests (including gain on sales) (A)		15,359			10,152
Net income		12,007			14,941
Distributions to preferred stockholders — Series B		(2,911	)		(2,911	)
Distributions to preferred stockholders — Series E (Convertible)		(931	)		(931	)
Net income available to common stockholders	$	8,165		$	11,099
Earnings per weighted average common share — basic and diluted:
(Loss)/income from continuing operations available to common stockholders, net of minority interests		($0.05	)	$	0.01
Income from discontinued operations, net of minority interests	$	0.11		$	0.07
Net income available to common stockholders	$	0.06		$	0.08
Common distributions declared per share	$	0.3125		$	0.3000
Weighted average number of common shares outstanding — basic		133,589			136,067
Weighted average number of common shares outstanding — diluted		133,589			137,073

(A) Discontinued operations represents all properties sold since January 1, 2002 and properties that are currently classified as held for disposition at March 31, 2006.

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Attachment 2

UNITED DOMINION REALTY TRUST, INC.
FUNDS FROM OPERATIONS
(Unaudited)

	Three Months Ended
	March 31,
In thousands, except per share amounts	2006			2005
Net income	$	12,007		$	14,941
Adjustments:
Distributions to preferred stockholders		(3,842	)		(3,842	)
Real estate depreciation and amortization		57,397			48,566
Minority interests of unitholders in operating partnership		(468	)		59
Real estate depreciation related to unconsolidated entities		—			62
Discontinued Operations:
Real estate depreciation		1,326			3,153
Minority interests of unitholders in operating partnership		1,001			632
Net gains on the sale of depreciable property		(15,347	)		(7,023	)
Net incremental gains on the sale of condominium homes		8,472			459
Gains on the disposition of real estate developed for sale		9			—
Funds from operations (“FFO”) — basic	$	60,555		$	57,007
Distribution to preferred stockholders — Series E (Convertible)		931			931
Funds from operations — diluted	$	61,486		$	57,938
Weighted average number of common shares and OP Units outstanding — basic		142,342			144,586
Weighted average number of common shares, OP Units, and common stock equivalents outstanding — diluted		147,801			150,187
FFO per common share — basic	$	0.43		$	0.39
FFO per common share — diluted	$	0.42		$	0.39

FFO is defined as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable property, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. This definition conforms with the National Association of Real Estate Investment Trust’s definition issued in April 2002. United Dominion considers FFO in evaluating property acquisitions and its operating performance and believes that FFO should be considered along with, but not as an alternative to, net income and cash flows as a measure of United Dominion’s activities in accordance with generally accepted accounting principles and is not necessarily indicative of cash available to fund cash needs.

Net incremental gains on the sale of condominium homes and the net incremental gain on the sale of a depreciable asset related to an unconsolidated entity are defined as net sales proceeds less a tax provision and the gross investment basis of the asset before accumulated depreciation. We consider FFO with gains/losses on the sale of condominium homes and gains/losses on the sale of depreciable assets related to an unconsolidated entity to be a meaningful supplemental measure of performance because the short-term use of funds produce a profit which differs from the traditional long-term investment in real estate for REITs.

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Attachment 3

UNITED DOMINION REALTY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

	March 31,			December 31,
In thousands, except share and per share amounts	2006			2005
ASSETS
Real estate owned:
Real estate held for investment	$	5,275,689		$	5,215,688
Less: accumulated depreciation		(1,137,308	)		(1,080,616	)
		4,138,381			4,135,072
Real estate under development (net of accumulated depreciation of $619 and $140)		129,235			117,328
Real estate held for disposition (net of accumulated depreciation of $44,373 and $43,073)		123,038			136,195
Total real estate owned, net of accumulated depreciation		4,390,654			4,388,595
Cash and cash equivalents		36,336			15,543
Restricted cash		4,809			4,583
Deferred financing costs, net		30,436			31,036
Notes receivable		36,120			64,805
Other assets		31,019			33,938
Other assets — real estate held for disposition		1,468			3,093
Total assets	$	4,530,842		$	4,541,593
LIABILITIES AND STOCKHOLDERS’ EQUITY
Secured debt	$	1,122,162		$	1,116,259
Unsecured debt		2,092,003			2,043,518
Real estate taxes payable		21,208			24,433
Accrued interest payable		24,178			26,672
Security deposits and prepaid rent		25,331			25,535
Distributions payable		47,078			45,313
Accounts payable, accrued expenses, and other liabilities		32,752			55,147
Other liabilities — real estate held for disposition		6,681			13,173
Total liabilities		3,371,393			3,350,050
Minority interests		81,146			83,819
Stockholders’ equity
Preferred stock, no par value; 50,000,000 shares authorized
5,416,009 shares of 8.60% Series B Cumulative Redeemable issued and outstanding (5,416,009 shares in 2005)		135,400			135,400
2,803,812 shares of 8.00% Series E Cumulative Convertible issued and outstanding (2,803,812 shares in 2005)		46,571			46,571
Common stock, $0.01 par value; 250,000,000 shares authorized 134,279,842 shares issued and outstanding (134,012,053 shares in 2005)		1,343			1,340
Additional paid-in capital		1,684,518			1,680,115
Distributions in excess of net income		(789,529	)		(755,702	)
Total stockholders’ equity		1,078,303			1,107,724
Total liabilities and stockholders’ equity	$	4,530,842		$	4,541,593

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