EXHIBIT 99.1
Item 6. | SELECTED FINANCIAL DATA |
Years Ended December 31, | ||||||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||
(In thousands, except per share data and apartment homes owned) | ||||||||||||||||||||||
Operating Data(c) | ||||||||||||||||||||||
Rental income | $ | 578,950 | $ | 516,078 | $ | 494,630 | $ | 468,805 | $ | 481,799 | ||||||||||||
Income/(loss) before minority interests and discontinued operations | 26,776 | 25,327 | (13,278 | ) | 2,904 | 5,704 | ||||||||||||||||
Income from discontinued operations, net of minority interests | 70,643 | 44,323 | 65,327 | 58,849 | 70,199 | |||||||||||||||||
Net income | 97,152 | 70,404 | 53,229 | 61,828 | 76,615 | |||||||||||||||||
Distributions to preferred stockholders | 19,531 | 26,326 | 27,424 | 31,190 | 36,891 | |||||||||||||||||
Net income available to common stockholders | 71,892 | 24,807 | 25,805 | 27,142 | 42,653 | |||||||||||||||||
Common distributions declared | 152,203 | 134,876 | 118,888 | 108,956 | 110,225 | |||||||||||||||||
Weighted average number of common shares outstanding — basic | 128,097 | 114,672 | 106,078 | 100,339 | 103,072 | |||||||||||||||||
Weighted average number of common shares outstanding — diluted | 129,080 | 114,672 | 106,078 | 100,339 | 103,072 | |||||||||||||||||
Weighted average number of common shares, OP Units, and common stock equivalents outstanding — diluted | 145,842 | 136,975 | 127,838 | 120,728 | 123,005 | |||||||||||||||||
Per share — basic: | ||||||||||||||||||||||
Income/(loss) from continuing operations available to common stockholders, net of minority interests | $ | 0.01 | $ | (0.17 | ) | $ | (0.37 | ) | $ | (0.32 | ) | $ | (0.27 | ) | ||||||||
Income from discontinued operations, net of minority interests | 0.55 | 0.39 | 0.61 | 0.59 | 0.68 | |||||||||||||||||
Net income available to common stockholders | 0.56 | 0.22 | 0.24 | 0.27 | 0.41 | |||||||||||||||||
Per share — diluted: | ||||||||||||||||||||||
Income/(loss) from continuing operations available to common stockholders, net of minority interests | 0.01 | (0.17 | ) | (0.37 | ) | (0.32 | ) | (0.27 | ) | |||||||||||||
Income from discontinued operations, net of minority interests | 0.55 | 0.39 | 0.61 | 0.59 | 0.68 | |||||||||||||||||
Net income available to common stockholders | 0.56 | 0.22 | 0.24 | 0.27 | 0.41 | |||||||||||||||||
Common distributions declared | 1.17 | 1.14 | 1.11 | 1.08 | 1.07 | |||||||||||||||||
Balance Sheet Data | ||||||||||||||||||||||
Real estate owned, at carrying value | $ | 5,243,296 | $ | 4,351,551 | $ | 3,967,483 | $ | 3,907,667 | $ | 3,836,320 | ||||||||||||
Accumulated depreciation | 1,007,887 | 896,630 | 748,733 | 646,366 | 509,405 | |||||||||||||||||
Total real estate owned, net of accumulated depreciation | 4,235,409 | 3,454,921 | 3,218,750 | 3,261,301 | 3,326,915 | |||||||||||||||||
Total assets | 4,332,001 | 3,543,643 | 3,276,136 | 3,348,091 | 3,453,957 | |||||||||||||||||
Secured debt | 1,197,924 | 1,018,028 | 1,015,740 | 974,177 | 866,115 | |||||||||||||||||
Unsecured debt | 1,682,058 | 1,114,009 | 1,041,900 | 1,090,020 | 1,126,215 | |||||||||||||||||
Total debt | 2,879,982 | 2,132,037 | 2,057,640 | 2,064,197 | 1,992,330 | |||||||||||||||||
Stockholders’ equity | 1,195,451 | 1,163,436 | 1,001,271 | 1,042,725 | 1,218,892 | |||||||||||||||||
Number of common shares outstanding | 136,430 | 127,295 | 106,605 | 103,133 | 102,219 |
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Years Ended December 31, | ||||||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||
(In thousands, except per share data and apartment homes owned) | ||||||||||||||||||||||
Other Data | ||||||||||||||||||||||
Cash Flow Data | ||||||||||||||||||||||
Cash provided by operating activities | $ | 251,747 | $ | 234,945 | $ | 229,001 | $ | 224,411 | $ | 224,160 | ||||||||||||
Cash (used in)/provided by investing activities | (595,966 | ) | (304,217 | ) | (67,363 | ) | (64,055 | ) | 58,705 | |||||||||||||
Cash provided by/(used in) financing activities | 347,299 | 70,944 | (163,127 | ) | (166,020 | ) | (280,238 | ) | ||||||||||||||
Funds from Operations(a) | ||||||||||||||||||||||
Funds from operations — basic | $ | 210,468 | $ | 192,938 | $ | 153,016 | $ | 159,202 | $ | 162,930 | ||||||||||||
Funds from operations — diluted | 218,355 | 207,619 | 168,795 | 174,630 | 178,230 | |||||||||||||||||
Funds from operations with gains on the disposition of real estate developed for sale — diluted(b) | 219,557 | 208,431 | 168,795 | 174,630 | 178,230 | |||||||||||||||||
Apartment Homes Owned | ||||||||||||||||||||||
Total apartment homes owned at December 31 | 78,855 | 76,244 | 74,480 | 77,567 | 77,219 | |||||||||||||||||
Weighted average number of apartment homes owned during the year | 76,873 | 74,550 | 76,567 | 76,487 | 80,253 |
(a) | Funds from operations (“FFO”) is defined as net income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from sales of depreciable property, plus 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. We consider FFO in evaluating property acquisitions and our operating performance and believe that FFO should be considered along with, but not as an alternative to, net income and cash flows as a measure of our activities in accordance with generally accepted accounting principles. FFO does not represent cash generated from operating activities in accordance with generally accepted accounting principles and is not necessarily indicative of cash available to fund cash needs. For 2004, FFO includes a charge of $5.5 million to cover hurricane related expenses. For 2001, FFO includes a charge of $8.6 million related to workforce reductions, other severance costs, executive office relocation costs, and the write down of seven undeveloped land sites along with our investment in an online apartment leasing company. For 2000, FFO includes a charge of $3.7 million related to the settlement of litigation and an organizational charge. For the years ended December 31, 2004 and 2003, distributions to preferred stockholders exclude $5.7 million and $19.3 million, respectively, related to premiums on preferred stock conversions. | |
(b) | Gains on the disposition of real estate investments developed for sale is defined as net sales proceeds less a tax provision (such development by REITs must be conducted in a taxable REIT subsidiary) and the gross investment basis of the asset before accumulated depreciation. We consider FFO with gains (or losses) on real estate development for sale to be a meaningful supplemental measure of performance because of the short-term use of funds to produce a profit which differs from the traditional long-term investment in real estate for REITs. | |
(c) | Reclassified to conform to current year presentation in accordance with FASB Statement No. 144,“Accounting for the Impairment or Disposal of Long-Lived Assets,” as described in Note 3 to the consolidated financial statements. |
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Item 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Forward-Looking Statements |
Business Overview |
3
Year Ended | |||||||||||||||||||||||||
As of December 31, 2004 | December 31, 2004 | ||||||||||||||||||||||||
Number of | Number of | Percentage | Carrying | Average | Average | ||||||||||||||||||||
Apartment | Apartment | of Carrying | Value (in | Physical | Collections per | ||||||||||||||||||||
Communities | Homes | Value | thousands) | Occupancy | Occupied Home | ||||||||||||||||||||
Southern California | 26 | 7,070 | 19.0 | % | $ | 993,486 | 94.5 | % | $ | 1,132 | |||||||||||||||
Houston, TX | 21 | 6,034 | 5.2 | % | 271,403 | 91.0 | % | 625 | |||||||||||||||||
Tampa, FL | 12 | 4,314 | 4.7 | % | 244,944 | 93.8 | % | 726 | |||||||||||||||||
Northern California | 7 | 2,024 | 4.1 | % | 217,004 | 94.4 | % | 1,126 | |||||||||||||||||
Orlando, FL | 14 | 4,140 | 4.1 | % | 216,721 | 94.7 | % | 710 | |||||||||||||||||
Metropolitan DC | 7 | 2,245 | 4.1 | % | 213,611 | 96.2 | % | 1,065 | |||||||||||||||||
Raleigh, NC | 11 | 3,663 | 4.0 | % | 212,412 | 93.6 | % | 637 | |||||||||||||||||
Dallas, TX | 11 | 3,590 | 3.8 | % | 198,027 | 96.0 | % | 644 | |||||||||||||||||
Phoenix, AZ | 10 | 2,779 | 3.3 | % | 174,341 | 91.7 | % | 669 | |||||||||||||||||
Baltimore, MD | 10 | 2,118 | 3.1 | % | 162,396 | 96.2 | % | 919 | |||||||||||||||||
Columbus, OH | 6 | 2,530 | 3.0 | % | 155,494 | 91.8 | % | 668 | |||||||||||||||||
Nashville, TN | 9 | 2,580 | 2.9 | % | 152,312 | 94.3 | % | 679 | |||||||||||||||||
Monterey Peninsula, CA | 8 | 1,580 | 2.7 | % | 139,333 | 91.5 | % | 919 | |||||||||||||||||
Richmond, VA | 9 | 2,636 | 2.6 | % | 137,496 | 93.9 | % | 750 | |||||||||||||||||
Charlotte, NC | 9 | 2,378 | 2.6 | % | 136,790 | 92.1 | % | 593 | |||||||||||||||||
Arlington, TX | 8 | 2,656 | 2.4 | % | 127,009 | 93.1 | % | 630 | |||||||||||||||||
Greensboro, NC | 8 | 2,123 | 2.1 | % | 107,913 | 93.3 | % | 588 | |||||||||||||||||
Seattle, WA | 6 | 1,575 | 1.9 | % | 99,829 | 93.0 | % | 758 | |||||||||||||||||
Denver, CO | 3 | 1,484 | 1.9 | % | 99,179 | 93.1 | % | 641 | |||||||||||||||||
Wilmington, NC | 6 | 1,868 | 1.8 | % | 93,902 | 95.8 | % | 647 | |||||||||||||||||
Portland, OR | 6 | 1,490 | 1.8 | % | 91,943 | 92.2 | % | 698 | |||||||||||||||||
Austin, TX | 5 | 1,425 | 1.6 | % | 82,080 | 93.6 | % | 631 | |||||||||||||||||
Atlanta, GA | 6 | 1,426 | 1.4 | % | 75,604 | 91.7 | % | 615 | |||||||||||||||||
Columbia, SC | 6 | 1,584 | 1.2 | % | 64,985 | 92.9 | % | 601 | |||||||||||||||||
Jacksonville, FL | 3 | 1,157 | 1.2 | % | 61,251 | 93.3 | % | 701 | |||||||||||||||||
Norfolk, VA | 6 | 1,438 | 1.1 | % | 60,184 | 96.3 | % | 782 | |||||||||||||||||
Other Southwestern | 12 | 4,100 | 4.0 | % | 209,653 | 92.9 | % | 630 | |||||||||||||||||
Other Florida | 6 | 1,737 | 2.3 | % | 118,006 | 91.1 | % | 712 | |||||||||||||||||
Other North Carolina | 8 | 1,893 | 1.5 | % | 78,669 | 95.9 | % | 620 | |||||||||||||||||
Other Mid-Atlantic | 6 | 1,156 | 1.1 | % | 56,377 | 94.1 | % | 816 | |||||||||||||||||
Other Virginia | 3 | 820 | 0.9 | % | 47,271 | 92.6 | % | 926 | |||||||||||||||||
Other Southeastern | 2 | 798 | 0.8 | % | 40,989 | 94.4 | % | 502 | |||||||||||||||||
Other Midwestern | 3 | 444 | 0.4 | % | 23,520 | 93.9 | % | 684 | |||||||||||||||||
Real Estate Under Development | — | — | 0.8 | % | 40,241 | — | — | ||||||||||||||||||
Land | — | — | 0.6 | % | 29,449 | — | — | ||||||||||||||||||
Total | 273 | 78,855 | 100.0 | % | $ | 5,233,824 | 93.6 | % | $ | 728 | |||||||||||||||
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Liquidity and Capital Resources |
Future Capital Needs |
5
Critical Accounting Policies and Estimates |
Capital Expenditures |
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | (per home) | ||||||||||||||||||||||||
2004 | 2003 | % Change | 2004 | 2003 | % Change | ||||||||||||||||||||
Turnover capital expenditures | $ | 16,863 | $ | 15,044 | 12.1 | % | $ | 220 | $ | 202 | 8.9 | % | |||||||||||||
Other recurring capital expenditures | 19,397 | 19,478 | -0.4 | % | 253 | 262 | -3.4 | % | |||||||||||||||||
Total recurring capital expenditures | 36,260 | 34,522 | 5.0 | % | 473 | 464 | 1.9 | % | |||||||||||||||||
Revenue enhancing improvements | 45,933 | 15,408 | 198.1 | % | 599 | 207 | 189.4 | % | |||||||||||||||||
Major renovations | 197 | 3,216 | -93.9 | % | 3 | 43 | -93.0 | % | |||||||||||||||||
Total capital improvements | $ | 82,390 | $ | 53,146 | 55.0 | % | $ | 1,075 | $ | 714 | 50.6 | % | |||||||||||||
Repair and maintenance | 42,196 | 40,615 | 3.9 | % | 550 | 546 | 0.7 | % | |||||||||||||||||
Total expenditures | $ | 124,586 | $ | 93,761 | 32.9 | % | $ | 1,625 | $ | 1,260 | 29.0 | % | |||||||||||||
Impairment of Long-Lived Assets |
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Real Estate Investment Properties |
Statements of Cash Flow |
Operating Activities |
Investing Activities |
Acquisitions |
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Real Estate Under Development |
Number of | Completed | Estimated | Expected | |||||||||||||||||||||
Apartment | Apartment | Cost to Date | Budgeted Cost | Cost | Completion | |||||||||||||||||||
Homes | Homes | (In thousands) | (In thousands) | Per Home | Date | |||||||||||||||||||
2000 Post Phase III San Francisco, CA | 24 | — | $ | 2,754 | $ | 7,000 | $ | 291,700 | 1Q06 | |||||||||||||||
Verano at Town Square Rancho Cucamonga, CA | 414 | — | 27,648 | 66,300 | 160,100 | 2Q06 | ||||||||||||||||||
Mandalay on the Lake Irving, TX | 369 | — | 9,840 | 30,900 | 83,700 | 2Q06 | ||||||||||||||||||
807 | — | $ | 40,242 | $ | 104,200 | $ | 129,100 | |||||||||||||||||
Disposition of Investments |
Financing Activities |
• | Repaid $131.8 million of secured debt and $46.6 million of unsecured debt. | |
• | Sold $125 million aggregate principal amount of 5.13% senior unsecured notes due January 2014 ($75 million in January and $50 million in March) under our medium-term note program. These notes represent a re-opening of the 5.13% senior unsecured notes due January 2014 that we issued in October 2003, and these notes constitute a single series of notes, bringing the aggregate principal amount outstanding of the 5.13% senior unsecured notes to $200 million. The net proceeds of $126.0 million were used to repay secured and unsecured debt obligations maturing in the first quarter of 2004 and to fund the acquisition of apartment homes. |
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• | Sold $50 million aggregate principal amount of 3.90% senior unsecured notes due March 2010 in March 2004 under our medium-term note program. The net proceeds of approximately $49.4 million were used to fund the acquisition of apartment communities. | |
• | Replaced our previous $1.0 billion shelf registration statement in June 2004 with a new shelf registration statement that provides for the issuance of up to $1.5 billion in debt securities and preferred and common stock. The new $1.5 billion shelf registration statement includes $331.3 million of unissued securities carried forward from our previous shelf registration statement. | |
• | Sold $50 million aggregate principal amount of 4.30% senior unsecured notes due July 2007 in June 2004 under our new $750 million medium-term note program. The net proceeds of approximately $49.8 million were used to fund the acquisition of apartment communities and repay amounts outstanding on our $500 million unsecured credit facility. | |
• | Moody’s Investors Service upgraded our rating on our senior unsecured debt to Baa2 from Baa3 and our preferred stock to Baa3 from Ba1 with a stable outlook in July 2004. | |
• | Sold $100 million of 5.00% senior unsecured notes due January 2012 and $25 million of 4.30% senior unsecured notes due July 2007 under our new $750 million medium-term note program in October 2004. The $25 million in notes represent a re-opening of the 4.30% senior unsecured notes due July 2007 that we issued in June 2004, and these notes constitute a single series of notes, bringing the aggregate principal amount outstanding of the 4.30% senior unsecured notes to $75 million. The net proceeds of $124.4 million were used to fund the acquisition of apartment communities. | |
• | Sold $100 million aggregate principal amount of 5.25% senior unsecured notes due January 2015 under our new $750 million medium-term note program in October 2004. The net proceeds of $99.0 million were used to fund the acquisition of apartment communities. | |
• | Sold 3.5 million shares of common stock at a public offering price of $20.50 per share under our $1.5 billion shelf registration statement in October 2004. We sold an additional 525,000 shares of common stock at a public offering price of $20.50 per share in connection with the exercise of the underwriter’s over-allotment option in October 2004. The net proceeds of $81.9 million were used to reduce outstanding debt balances under our $500 million unsecured revolving credit facility, which was used to fund the acquisition of apartment communities. | |
• | Filed a prospectus supplement under the Securities Act of 1933 in October 2004, relating to the offering of up to 5 million shares of our common stock that we may issue and sell through an agent from time to time in “at the market offerings,” as defined in Rule 415 of the Securities Act of 1933. Any sales of these shares will be made under our $1.5 billion shelf registration statement pursuant to a sales agreement that we entered into with the agent in July 2003. The sales price of the common stock that may be sold under the sales agreement will be no lower than the minimum price designated by us prior to the sale. As of December 31, 2004, we have sold a total of 472,000 shares of common stock pursuant to the sales agreement at a weighted average sales price of $20.36, for net proceeds to us of approximately $9.4 million. | |
• | Exercised our right to redeem 2 million shares of our Series D Cumulative Convertible Redeemable Preferred Stock in December 2004. Upon receipt of our redemption notice, the shares to be redeemed were converted by the holder into 3,076,769 shares of common stock at a price of $16.25 per share. | |
• | In conjunction with certain acquisitions, we assumed secured mortgages of $311.7 million with maturity dates ranging from September 2006 through June 2013. |
Credit Facilities |
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Derivative Instruments |
Interest Rate Risk |
10
Funds from Operations |
11
2004 | 2003 | 2002 | |||||||||||
Net income | $ | 97,152 | $ | 70,404 | $ | 53,229 | |||||||
Adjustments: | |||||||||||||
Distributions to preferred stockholders | (19,531 | ) | (26,326 | ) | (27,424 | ) | |||||||
Real estate depreciation, net of outside partners’ interest | 164,930 | 138,426 | 126,335 | ||||||||||
Minority interests of unitholders in operating partnership | 85 | (1,368 | ) | (2,594 | ) | ||||||||
Real estate depreciation related to unconsolidated entities | 279 | 196 | 471 | ||||||||||
Discontinued Operations: | |||||||||||||
Real estate depreciation | 15,698 | 24,532 | 31,394 | ||||||||||
Minority interests of unitholders in operating partnership | 4,758 | 3,015 | 4,303 | ||||||||||
Net gains on sales of depreciable property | (52,903 | ) | (15,941 | ) | (32,698 | ) | |||||||
Funds from operations — basic | $ | 210,468 | $ | 192,938 | $ | 153,016 | |||||||
Distributions to preferred stockholders — Series D and E (Convertible) | 7,887 | 14,681 | 15,779 | ||||||||||
Funds from operations — diluted | $ | 218,355 | $ | 207,619 | $ | 168,795 | |||||||
Gains on the disposition of real estate developed for sale | 1,202 | 812 | — | ||||||||||
FFO with gains on the disposition of real estate developed for sale — diluted | $ | 219,557 | $ | 208,431 | $ | 168,795 | |||||||
Weighted average number of common shares and OP Units outstanding — basic | 136,852 | 122,589 | 113,077 | ||||||||||
Weighted average number of common shares, OP Units, and common stock equivalents outstanding — diluted | 145,842 | 136,975 | 127,838 |
2004 | 2003 | 2002 | ||||||||||
GAAP gains on the disposition of real estate developed for sale | $ | 1,278 | $ | 1,249 | $ | — | ||||||
Less: accumulated depreciation | (76 | ) | (437 | ) | — | |||||||
Gains on the disposition of real estate developed for sale | $ | 1,202 | $ | 812 | $ | — | ||||||
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2004 | 2003 | 2002 | |||||||||||
Weighted average number of common shares and OP units outstanding — basic | 136,852 | 122,589 | 113,077 | ||||||||||
Weighted average number of OP units outstanding | (8,755 | ) | (7,917 | ) | (6,999 | ) | |||||||
Weighted average number of common shares outstanding — basic per the Consolidated Statements of Operations | 128,097 | 114,672 | 106,078 | ||||||||||
Weighted average number of common shares, OP units, and common stock equivalents outstanding — diluted | 145,842 | 136,975 | 127,838 | ||||||||||
Weighted average number of incremental shares from assumed stock option conversions | — | (976 | ) | (885 | ) | ||||||||
Weighted average number of incremental shares from assumed restricted stock conversions | 86 | — | — | ||||||||||
Weighted average number of OP units outstanding | (8,755 | ) | (7,917 | ) | (6,999 | ) | |||||||
Weighted average number of Series A OPPSs outstanding | (1,791 | ) | (1,773 | ) | (1,568 | ) | |||||||
Weighted average number of Series D preferred stock outstanding | (2,892 | ) | (10,033 | ) | (12,308 | ) | |||||||
Weighted average number of Series E preferred stock outstanding | (3,410 | ) | (1,604 | ) | — | ||||||||
Weighted average number of common shares outstanding — diluted per the Consolidated Statements of Operations | 129,080 | 114,672 | 106,078 | ||||||||||
2004 | 2003 | 2002 | ||||||||||
Net cash provided by operating activities | $ | 251,747 | $ | 234,945 | $ | 229,001 | ||||||
Net cash used in investing activities | (595,966 | ) | (304,217 | ) | (67,363 | ) | ||||||
Net cash provided by/(used in) financing activities | 347,299 | 70,944 | (163,127 | ) |
Net Income Available to Common Stockholders |
2004-vs.-2003 |
• | $37.0 million more in gains recognized from the sale of depreciable property in 2004, | |
• | a $19.2 million increase in operating results in 2004, | |
• | a $13.5 million decrease in premiums paid on preferred stock conversions in 2004, |
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• | $6.8 million less in preferred stock distributions in 2004, | |
• | a $1.5 million increase in non-property income in 2004, | |
• | $1.4 million less in impairment loss on investments in 2004, and | |
• | a $1.3 million decrease in general and administrative expense in 2004. |
2003-vs.-2002 |
• | a charge of $19.3 million in 2003 for a premium on preferred stock conversions, | |
• | $16.8 million less in gains recognized from the sale of depreciable property in 2003, | |
• | a $15.5 million decrease in property operating income in 2003, | |
• | a $4.2 million increase in depreciation and amortization expense in 2003, and | |
• | a $1.4 million impairment charge taken in 2003 for the write-off of our investment in Realeum, Inc., an unconsolidated development joint venture. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2004 | 2003 | % Change | 2003 | 2002 | % Change | |||||||||||||||||||
Property rental income | $ | 649,952 | $ | 613,550 | 5.9 | % | $ | 613,550 | $ | 627,625 | -2.2 | % | ||||||||||||
Property operating expense* | (251,697 | ) | (234,478 | ) | 7.3 | % | (234,478 | ) | (233,071 | ) | 0.6 | % | ||||||||||||
Property operating income | $ | 398,255 | $ | 379,072 | 5.1 | % | $ | 379,072 | $ | 394,554 | -3.9 | % | ||||||||||||
Weighted average number of homes | 76,873 | 74,550 | 3.1 | % | 74,550 | 76,567 | -2.6 | % | ||||||||||||||||
Physical occupancy** | 93.6 | % | 93.2 | % | 0.4 | % | 93.2 | % | 93.0 | % | 0.2 | % |
* | Excludes depreciation, amortization, and property management expenses. |
** | Based upon weighted average stabilized units. |
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2004 | 2003 | 2002 | |||||||||||
Property operating income | $ | 398,255 | $ | 379,072 | $ | 394,554 | |||||||
Commercial operating income | 513 | 733 | 618 | ||||||||||
Non-property income | 2,608 | 1,068 | 1,806 | ||||||||||
Depreciation and amortization | (184,000 | ) | (166,577 | ) | (163,183 | ) | |||||||
Interest | (124,087 | ) | (117,416 | ) | (132,941 | ) | |||||||
General and administrative and property management | (37,197 | ) | (37,499 | ) | (36,583 | ) | |||||||
Other operating expenses | (1,314 | ) | (1,265 | ) | (1,351 | ) | |||||||
Net gain on sale of depreciable property | 52,902 | 15,941 | 32,698 | ||||||||||
Loss on early debt retirement | — | — | (36,965 | ) | |||||||||
Impairment loss on real estate and investments | — | (1,392 | ) | (2,301 | ) | ||||||||
Hurricane related expenses | (5,503 | ) | — | — | |||||||||
Minority interests | (5,025 | ) | (2,261 | ) | (3,123 | ) | |||||||
Net income per the Consolidated Statements of Operations | $ | 97,152 | $ | 70,404 | $ | 53,229 | |||||||
2004-vs.-2003 |
Same Communities |
Non-Mature Communities |
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2003-vs.-2002 |
Same Communities |
Non-Mature Communities |
Real Estate Depreciation and Amortization |
Interest Expense |
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General and Administrative |
Hurricane Related Expenses |
Impairment Loss on Real Estate and Investments |
Gains on Sales of Land and Depreciable Property |
Premium on Preferred Stock Conversions |
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eBay Purchase of Rent.com |
Inflation |
Off-Balance Sheet Arrangements |
Contractual Obligations |
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations | Total | 2005 | 2006-2007 | 2008-2009 | Thereafter | |||||||||||||||
Long-Term Debt Obligations | $ | 2,879,982 | $ | 99,002 | $ | 732,444 | $ | 566,477 | $ | 1,482,059 | ||||||||||
Capital Lease Obligations | — | — | — | — | — | |||||||||||||||
Operating Lease Obligations | 28,645 | 1,709 | 2,505 | 2,128 | 22,303 | |||||||||||||||
Purchase Obligations | — | — | — | — | — | |||||||||||||||
Other Long-Term Liabilities Reflected on the Balance Sheet Under GAAP | — | — | — | — | — |
Factors Affecting Our Business and Prospects |
• | unfavorable changes in apartment market and economic conditions that could adversely affect occupancy levels and rental rates, | |
• | the failure of acquisitions to achieve anticipated results, | |
• | possible difficulty in selling apartment communities, | |
• | the timing and closing of planned dispositions under agreement, |
18
• | competitive factors that may limit our ability to lease apartment homes or increase or maintain rents, | |
• | insufficient cash flow that could affect our debt financing and create refinancing risk, | |
• | failure to generate sufficient revenue, which could impair our debt service payments and distributions to stockholders, | |
• | development and construction risks that may impact our profitability, | |
• | potential damage from natural disasters, including hurricanes and other weather-related events, which could result in substantial costs, | |
• | delays in completing developments and lease-ups on schedule, | |
• | our failure to succeed in new markets, | |
• | changing interest rates, which could increase interest costs and affect the market price of our securities, | |
• | potential liability for environmental contamination, which could result in substantial costs, and | |
• | the imposition of federal taxes if we fail to qualify as a REIT in any taxable year. |
19
Page | ||||
FINANCIAL STATEMENTS FILED AS PART OF THIS REPORT | ||||
Report of Independent Registered Public Accounting Firm | 21 | |||
Consolidated Balance Sheets at December 31, 2004 and 2003 | 22 | |||
Consolidated Statements of Operations for each of the three years in the period ended December 31, 2004 | 23 | |||
Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2004 | 24 | |||
Consolidated Statements of Stockholders’ Equity for each of the three years in the period ended December 31, 2004 | 25 | |||
Notes to Consolidated Financial Statements | 27 | |||
SCHEDULE FILED AS PART OF THIS REPORT | ||||
Schedule III — Summary of Real Estate Owned | 49 |
20
United Dominion Realty Trust, Inc.
Ernst & Young LLP |
August 9, 2005
21
December 31, | ||||||||||
2004 | 2003 | |||||||||
ASSETS | ||||||||||
Real estate owned: | ||||||||||
Real estate held for investment | $ | 4,845,930 | $ | 3,720,013 | ||||||
Less: accumulated depreciation | (932,149 | ) | (769,917 | ) | ||||||
3,913,781 | 2,950,096 | |||||||||
Real estate under development | 64,921 | 28,880 | ||||||||
Real estate held for disposition (net of accumulated depreciation of $75,738 and $126,713) | 256,707 | 475,945 | ||||||||
Total real estate owned, net of accumulated depreciation | 4,235,409 | 3,454,921 | ||||||||
Cash and cash equivalents | 7,904 | 4,824 | ||||||||
Restricted cash | 6,086 | 7,540 | ||||||||
Deferred financing costs, net | 25,151 | 21,425 | ||||||||
Investment in unconsolidated development joint venture | 458 | 1,673 | ||||||||
Funds held in escrow from 1031 exchanges pending the acquisition of real estate | 17,039 | 14,447 | ||||||||
Notes receivable | 5,000 | 13,000 | ||||||||
Other assets | 34,266 | 25,173 | ||||||||
Other assets — real estate held for disposition | 688 | 640 | ||||||||
Total assets | $ | 4,332,001 | $ | 3,543,643 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Secured debt | $ | 1,163,271 | $ | 893,241 | ||||||
Secured debt — real estate held for disposition | 34,653 | 124,787 | ||||||||
Unsecured debt | 1,682,058 | 1,114,009 | ||||||||
Real estate taxes payable | 28,394 | 26,745 | ||||||||
Accrued interest payable | 18,773 | 12,892 | ||||||||
Security deposits and prepaid rent | 24,394 | 20,567 | ||||||||
Distributions payable | 44,624 | 40,623 | ||||||||
Accounts payable, accrued expenses, and other liabilities | 49,837 | 44,380 | ||||||||
Other liabilities — real estate held for disposition | 6,953 | 8,757 | ||||||||
Total liabilities | 3,052,957 | 2,286,001 | ||||||||
Minority interests | 83,593 | 94,206 | ||||||||
Stockholders’ equity: | ||||||||||
Preferred stock, no par value; 25,000,000 shares authorized; | ||||||||||
5,416,009 shares 8.60% Series B Cumulative Redeemable issued and outstanding (5,416,009 in 2003) | 135,400 | 135,400 | ||||||||
0 shares 7.50% Series D Cumulative Convertible Redeemable issued and outstanding (2,000,000 in 2003) | — | 44,271 | ||||||||
2,803,812 shares 8.00% Series E Cumulative Convertible issued and outstanding (3,425,217 in 2003) | 46,571 | 56,893 | ||||||||
Common stock, $1 par value; 250,000,000 shares authorized 136,429,592 shares issued and outstanding (127,295,126 in 2003) | 136,430 | 127,295 | ||||||||
Additional paid-in capital | 1,614,916 | 1,458,983 | ||||||||
Distributions in excess of net income | (731,808 | ) | (651,497 | ) | ||||||
Deferred compensation — unearned restricted stock awards | (6,058 | ) | (5,588 | ) | ||||||
Notes receivable from officer-stockholders | — | (459 | ) | |||||||
Accumulated other comprehensive loss | — | (1,862 | ) | |||||||
Total stockholders’ equity | 1,195,451 | 1,163,436 | ||||||||
Total liabilities and stockholders’ equity | $ | 4,332,001 | $ | 3,543,643 | ||||||
22
Years ended December 31, | |||||||||||||||
2004 | 2003 | 2002 | |||||||||||||
REVENUES | |||||||||||||||
Rental income | $ | 578,950 | $ | 516,078 | $ | 494,630 | |||||||||
Non-property income | 2,608 | 1,068 | 1,806 | ||||||||||||
Total revenues | 581,558 | 517,146 | 496,436 | ||||||||||||
EXPENSES | |||||||||||||||
Rental expenses: | |||||||||||||||
Real estate taxes and insurance | 67,082 | 58,412 | 53,548 | ||||||||||||
Personnel | 60,594 | 52,264 | 49,679 | ||||||||||||
Utilities | 34,788 | 30,513 | 27,824 | ||||||||||||
Repair and maintenance | 36,769 | 33,384 | 30,656 | ||||||||||||
Administrative and marketing | 20,209 | 18,749 | 17,937 | ||||||||||||
Property management | 17,881 | 16,873 | 17,240 | ||||||||||||
Other operating expenses | 1,226 | 1,205 | 1,203 | ||||||||||||
Real estate depreciation and amortization | 164,930 | 138,861 | 127,761 | ||||||||||||
Interest | 123,170 | 116,522 | 127,549 | ||||||||||||
General and administrative | 19,316 | 20,626 | 19,343 | ||||||||||||
Other depreciation and amortization | 3,314 | 3,018 | 3,875 | ||||||||||||
Hurricane related expenses | 5,503 | — | — | ||||||||||||
Impairment loss on investments | — | 1,392 | — | ||||||||||||
Loss on early debt retirement | — | — | 33,099 | ||||||||||||
Total expenses | 554,782 | 491,819 | 509,714 | ||||||||||||
Income/(loss) before minority interests and discontinued operations | 26,776 | 25,327 | (13,278 | ) | |||||||||||
Minority interests of outside partnerships | (182 | ) | (614 | ) | (1,414 | ) | |||||||||
Minority interests of unitholders in operating partnerships | (85 | ) | 1,368 | 2,594 | |||||||||||
Income/(loss) before discontinued operations, net of minority interests | 26,509 | 26,081 | (12,098 | ) | |||||||||||
Income from discontinued operations, net of minority interests | 70,643 | 44,323 | 65,327 | ||||||||||||
Net income | 97,152 | 70,404 | 53,229 | ||||||||||||
Distributions to preferred stockholders — Series B | (11,644 | ) | (11,645 | ) | (11,645 | ) | |||||||||
Distributions to preferred stockholders — Series D (Convertible) | (3,473 | ) | (12,178 | ) | (15,779 | ) | |||||||||
Distributions to preferred stockholders — Series E (Convertible) | (4,414 | ) | (2,503 | ) | — | ||||||||||
Premium on preferred stock conversions | (5,729 | ) | (19,271 | ) | — | ||||||||||
Net income available to common stockholders | $ | 71,892 | $ | 24,807 | $ | 25,805 | |||||||||
Earnings per common share — basic and diluted: | |||||||||||||||
Income/(loss) from continuing operations available to common stockholders, net of minority interests | $ | 0.01 | $ | (0.17 | ) | $ | (0.37 | ) | |||||||
Income from discontinued operations, net of minority interests | $ | 0.55 | $ | 0.39 | $ | 0.61 | |||||||||
Net income available to common stockholders | $ | 0.56 | $ | 0.22 | $ | 0.24 | |||||||||
Common distributions declared per share | $ | 1.17 | $ | 1.14 | $ | 1.11 | |||||||||
Weighted average number of common shares outstanding – basic | 128,097 | 114,672 | 106,078 | ||||||||||||
Weighted average number of common shares outstanding – diluted | 129,080 | 114,672 | 106,078 |
23
Years ended December 31, | |||||||||||||||
2004 | 2003 | 2002 | |||||||||||||
Operating Activities | |||||||||||||||
Net income | $ | 97,152 | $ | 70,404 | $ | 53,229 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 184,088 | 166,637 | 163,328 | ||||||||||||
Impairment loss on real estate and investments | — | 1,392 | 2,301 | ||||||||||||
Gains on sales of land and depreciable property | (52,903 | ) | (15,941 | ) | (32,698 | ) | |||||||||
Minority interests | 5,025 | 2,261 | 3,122 | ||||||||||||
Loss on early debt retirement | — | — | 36,965 | ||||||||||||
Amortization of deferred financing costs and other | 7,206 | 6,148 | 5,256 | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
(Increase)/decrease in operating assets | (1,769 | ) | (2,560 | ) | 12,763 | ||||||||||
Increase/(decrease) in operating liabilities | 12,948 | 6,604 | (15,265 | ) | |||||||||||
Net cash provided by operating activities | 251,747 | 234,945 | 229,001 | ||||||||||||
Investing Activities | |||||||||||||||
Proceeds from sales of real estate investments, net | 265,691 | 93,613 | 282,533 | ||||||||||||
Acquisition of real estate assets, net of liabilities assumed and equity | (755,966 | ) | (314,739 | ) | (282,600 | ) | |||||||||
Development of real estate assets | (19,131 | ) | (13,640 | ) | (22,763 | ) | |||||||||
Capital expenditures and other major improvements — real estate assets, net of escrow reimbursement | (82,390 | ) | (53,146 | ) | (42,827 | ) | |||||||||
Capital expenditures — non-real estate assets | (1,578 | ) | (1,858 | ) | (1,706 | ) | |||||||||
Increase in funds held in escrow from tax free exchanges pending the acquisition of real estate | (2,592 | ) | (14,447 | ) | — | ||||||||||
Net cash used in investing activities | (595,966 | ) | (304,217 | ) | (67,363 | ) | |||||||||
Financing Activities | |||||||||||||||
Proceeds from the issuance of secured debt | — | 37,415 | 324,282 | ||||||||||||
Scheduled principal payments on secured debt | (36,814 | ) | (22,442 | ) | (11,176 | ) | |||||||||
Non-scheduled principal payments and prepayment penalties on secured debt | (95,011 | ) | (17,549 | ) | (294,662 | ) | |||||||||
Proceeds from the issuance of unsecured debt | 475,775 | 323,382 | 198,476 | ||||||||||||
Payments and prepayment premiums on unsecured debt | (46,585 | ) | (214,591 | ) | (210,413 | ) | |||||||||
Net borrowing/(repayment) of revolving bank debt | 140,200 | (37,900 | ) | (54,400 | ) | ||||||||||
Payment of financing costs | (8,849 | ) | (6,463 | ) | (5,510 | ) | |||||||||
Issuance of note receivable | — | (8,000 | ) | — | |||||||||||
Proceeds from the issuance of common stock | 99,461 | 179,811 | 60,252 | ||||||||||||
Proceeds from the repayment of officer loans | 459 | 2,171 | — | ||||||||||||
Proceeds from the issuance of performance shares | (50 | ) | 657 | — | |||||||||||
Distributions paid to minority interests | (13,553 | ) | (9,756 | ) | (8,926 | ) | |||||||||
Distributions paid to preferred stockholders | (20,347 | ) | (27,532 | ) | (27,424 | ) | |||||||||
Distributions paid to common stockholders | (147,387 | ) | (128,188 | ) | (117,116 | ) | |||||||||
Repurchases of common and preferred stock | — | (71 | ) | (16,510 | ) | ||||||||||
Net cash provided by/(used in) financing activities | 347,299 | 70,944 | (163,127 | ) | |||||||||||
Net increase/(decrease) in cash and cash equivalents | 3,080 | 1,672 | (1,489 | ) | |||||||||||
Cash and cash equivalents, beginning of year | 4,824 | 3,152 | 4,641 | ||||||||||||
Cash and cash equivalents, end of year | $ | 7,904 | $ | 4,824 | $ | 3,152 | |||||||||
Supplemental Information: | |||||||||||||||
Interest paid during the period | $ | 115,519 | $ | 116,057 | $ | 135,223 | |||||||||
Non-cash transactions: | |||||||||||||||
Conversion of operating partnership minority interests to common stock (170,209 shares in 2004, 216,983 shares in 2003, and 92,159 shares in 2002) | 2,035 | 2,206 | 1,252 | ||||||||||||
Issuance of restricted stock awards | 3,250 | 5,297 | 2,904 | ||||||||||||
Issuance of preferred stock in connection with acquisitions | — | 58,811 | — | ||||||||||||
Issuance of preferred operating partnership units in connection with acquisitions | — | 26,872 | — | ||||||||||||
Issuance of operating partnership units in connection with acquisitions | — | 7,135 | — | ||||||||||||
Cancellation of a note receivable with the acquisition of a property | 8,000 | — | — | ||||||||||||
Secured debt assumed with the acquisition of properties | 311,714 | 4,865 | 41,636 | ||||||||||||
Reduction in secured debt from the disposition of properties | — | — | 35,885 | ||||||||||||
Receipt of a note receivable in connection with sales of real estate investments | 75,586 | — | — |
24
Deferred | Accumulated | |||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Distributions | Compensation — | Notes Receivable | Other | |||||||||||||||||||||||||||||||||||||
Paid-in | in Excess of | Unearned Restricted | from Officer- | Comprehensive | ||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Net Income | Stock Awards | Stockholders | Loss | Total | |||||||||||||||||||||||||||||||||
Balance, December 31, 2001 | 13,416,009 | $ | 310,400 | 103,133,279 | $ | 103,133 | $ | 1,098,029 | $ | (448,345 | ) | $ | (1,312 | ) | $ | (4,309 | ) | $ | (14,871 | ) | $ | 1,042,725 | ||||||||||||||||||||
Comprehensive Income | ||||||||||||||||||||||||||||||||||||||||||
Net income | 53,229 | 53,229 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivative financial instruments | 4,913 | 4,913 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 53,229 | 4,913 | 58,142 | |||||||||||||||||||||||||||||||||||||||
Issuance of common shares to employees, officers, and director-stockholders | 1,000,592 | 1,001 | 10,782 | 11,783 | ||||||||||||||||||||||||||||||||||||||
Issuance of common shares through dividend reinvestment and stock purchase plan | 152,343 | 152 | 2,347 | 2,499 | ||||||||||||||||||||||||||||||||||||||
Issuance of common shares through public offering | 3,166,800 | 3,167 | 41,139 | 44,306 | ||||||||||||||||||||||||||||||||||||||
Purchase of common stock | (1,145,412 | ) | (1,146 | ) | (15,369 | ) | (16,515 | ) | ||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | 205,498 | 205 | 2,699 | (2,904 | ) | — | ||||||||||||||||||||||||||||||||||||
Cash purchase and conversion of minority interests of unitholders in operating partnerships | 92,159 | 93 | 1,159 | 1,252 | ||||||||||||||||||||||||||||||||||||||
Principal repayments on notes receivable from officer-stockholders | 1,679 | 1,679 | ||||||||||||||||||||||||||||||||||||||||
Common stock distributions declared ($1.11 per share) | (118,888 | ) | (118,888 | ) | ||||||||||||||||||||||||||||||||||||||
Preferred stock distributions declared — Series B ($2.15 per share) | (11,645 | ) | (11,645 | ) | ||||||||||||||||||||||||||||||||||||||
Preferred stock distributions declared — Series D ($1.98 per share) | (15,779 | ) | (15,779 | ) | ||||||||||||||||||||||||||||||||||||||
Amortization of deferred compensation | 1,712 | 1,712 | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2002 | 13,416,009 | 310,400 | 106,605,259 | 106,605 | 1,140,786 | (541,428 | ) | (2,504 | ) | (2,630 | ) | (9,958 | ) | 1,001,271 | ||||||||||||||||||||||||||||
Comprehensive Income | ||||||||||||||||||||||||||||||||||||||||||
Net income | 70,404 | 70,404 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivative financial instruments | 8,096 | 8,096 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 70,404 | 8,096 | 78,500 | |||||||||||||||||||||||||||||||||||||||
Issuance of common shares to employees, officers, and director-stockholders | 1,117,399 | 1,118 | 12,185 | 13,303 | ||||||||||||||||||||||||||||||||||||||
Issuance of common shares through dividend reinvestment and stock purchase plan | 91,190 | 91 | 1,520 | 1,611 | ||||||||||||||||||||||||||||||||||||||
Issuance of common shares through public offering | 9,700,000 | 9,700 | 154,936 | 164,636 | ||||||||||||||||||||||||||||||||||||||
Issuance of 8.00% Series E Cumulative Convertible shares | 3,425,217 | 56,893 | 1,905 | 58,798 | ||||||||||||||||||||||||||||||||||||||
Purchase of common stock | (4,564 | ) | (5 | ) | (66 | ) | (71 | ) | ||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | 337,936 | 338 | 4,959 | (5,297 | ) | — | ||||||||||||||||||||||||||||||||||||
Conversion of minority interests of unitholders in operating partnerships | 216,983 | 217 | 1,989 | 2,206 | ||||||||||||||||||||||||||||||||||||||
Principal repayments on notes receivable from officer-stockholders | 2,171 | 2,171 | ||||||||||||||||||||||||||||||||||||||||
Accretion of premium on Series D conversions | 19,271 | (19,271 | ) | — | ||||||||||||||||||||||||||||||||||||||
Conversion of 7.50% Series D Cumulative Convertible Redeemable shares | (6,000,000 | ) | (150,000 | ) | 9,230,923 | 9,231 | 140,769 | — |
25
Deferred | Accumulated | |||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Distributions | Compensation — | Notes Receivable | Other | |||||||||||||||||||||||||||||||||||||
Paid-in | in Excess of | Unearned Restricted | from Officer- | Comprehensive | ||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Net Income | Stock Awards | Stockholders | Loss | Total | |||||||||||||||||||||||||||||||||
Common stock distributions declared ($1.14 per share) | (134,876 | ) | (134,876 | ) | ||||||||||||||||||||||||||||||||||||||
Preferred stock distributions declared — Series B ($2.15 per share) | (11,645 | ) | (11,645 | ) | ||||||||||||||||||||||||||||||||||||||
Preferred stock distributions declared — Series D ($2.04 per share) | (12,178 | ) | (12,178 | ) | ||||||||||||||||||||||||||||||||||||||
Preferred stock distributions declared — Series E ($0.84 per share) | (2,503 | ) | (2,503 | ) | ||||||||||||||||||||||||||||||||||||||
Amortization of deferred compensation | 2,213 | 2,213 | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2003 | 10,841,226 | $ | 236,564 | 127,295,126 | $ | 127,295 | $ | 1,458,983 | $ | (651,497 | ) | $ | (5,588 | ) | $ | (459 | ) | $ | (1,862 | ) | $ | 1,163,436 | ||||||||||||||||||||
Comprehensive Income | ||||||||||||||||||||||||||||||||||||||||||
Net income | 97,152 | 97,152 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivative financial instruments | 1,862 | 1,862 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 97,152 | 1,862 | 99,014 | |||||||||||||||||||||||||||||||||||||||
Issuance of common shares to employees, officers, and director-stockholders | 549,606 | 550 | 5,396 | 5,946 | ||||||||||||||||||||||||||||||||||||||
Issuance of common shares through dividend reinvestment and stock purchase plan | 111,941 | 112 | 2,102 | 2,214 | ||||||||||||||||||||||||||||||||||||||
Issuance of common shares through public offering | 4,497,000 | 4,497 | 86,804 | 91,301 | ||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | 107,536 | 107 | 3,143 | (3,250 | ) | — | ||||||||||||||||||||||||||||||||||||
Conversion of minority interests of unitholders in operating partnerships | 170,209 | 170 | 1,865 | 2,035 | ||||||||||||||||||||||||||||||||||||||
Principal repayments on notes receivable from officer-stockholders | 459 | 459 | ||||||||||||||||||||||||||||||||||||||||
Accretion of premium on Series D conversions | 5,729 | (5,729 | ) | — | ||||||||||||||||||||||||||||||||||||||
Conversion of 7.50% Series D Cumulative Convertible Redeemable shares | (2,000,000 | ) | (50,000 | ) | 3,076,769 | 3,077 | 46,923 | — | ||||||||||||||||||||||||||||||||||
Conversion of 8.00% Series E Cumulative Convertible shares | (621,405 | ) | (10,322 | ) | 621,405 | 622 | 9,700 | — | ||||||||||||||||||||||||||||||||||
Common stock distributions declared ($1.17 per share) | (152,203 | ) | (152,203 | ) | ||||||||||||||||||||||||||||||||||||||
Preferred stock distributions declared — Series B ($2.15 per share) | (11,644 | ) | (11,644 | ) | ||||||||||||||||||||||||||||||||||||||
Preferred stock distributions declared — Series D ($2.09 per share) | (3,473 | ) | (3,473 | ) | ||||||||||||||||||||||||||||||||||||||
Preferred stock distributions declared — Series E ($1.33 per share) | (4,414 | ) | (4,414 | ) | ||||||||||||||||||||||||||||||||||||||
Amortization of deferred compensation | 2,780 | 2,780 | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2004 | 8,219,821 | $ | 181,971 | 136,429,592 | $ | 136,430 | $ | 1,614,916 | $ | (731,808 | ) | $ | (6,058 | ) | $ | — | $ | — | $ | 1,195,451 | ||||||||||||||||||||||
26
27
2004 | 2003 | 2002 | ||||||||||
Net income | $ | 97,152 | $ | 70,404 | $ | 53,229 | ||||||
Minority interest expense | (1,950 | ) | (3,364 | ) | (1,137 | ) | ||||||
Depreciation and amortization expense | 46,916 | 44,108 | 49,513 | |||||||||
(Loss)/gain on the disposition of properties | (10,029 | ) | 2,363 | (186 | ) | |||||||
Revenue recognition timing differences | (195 | ) | 1,750 | 1,272 | ||||||||
Investment loss, not deductible for tax | (593 | ) | — | — | ||||||||
Other expense timing differences | (2,192 | ) | (1,090 | ) | (3,914 | ) | ||||||
REIT taxable income before dividends | $ | 129,109 | $ | 114,171 | $ | 98,777 | ||||||
Dividend deduction | $ | 153,409 | $ | 132,722 | $ | 111,965 | ||||||
2004 | 2003 | 2002 | ||||||||||
Ordinary income | $ | 0.77 | $ | 0.82 | $ | 0.55 | ||||||
Long-term capital gain | 0.20 | 0.10 | 0.14 | |||||||||
Unrecaptured section 1250 gain | 0.08 | 0.02 | 0.11 | |||||||||
Return of capital | 0.12 | 0.20 | 0.31 | |||||||||
$ | 1.17 | $ | 1.14 | $ | 1.11 | |||||||
28
29
30
31
2004 | 2003 | 2002 | |||||||||||
Numerator for basic and diluted earnings per share — Net income available to common stockholders | $ | 71,892 | $ | 24,807 | $ | 25,805 | |||||||
Denominator: | |||||||||||||
Denominator for basic earnings per share — Weighted average common shares outstanding | 128,711 | 115,109 | 106,257 | ||||||||||
Non-vested restricted stock awards | (614 | ) | (437 | ) | (179 | ) | |||||||
128,097 | 114,672 | 106,078 | |||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options and non-vested restricted stock awards | 983 | — | — | ||||||||||
Denominator for dilutive earnings per share | 129,080 | 114,672 | 106,078 | ||||||||||
Basic earnings per share | $ | 0.56 | $ | 0.22 | $ | 0.24 | |||||||
Diluted earnings per share | $ | 0.56 | $ | 0.22 | $ | 0.24 | |||||||
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2004 | 2003 | |||||||
Land and land improvements | $ | 1,159,979 | $ | 742,078 | ||||
Buildings and improvements | 3,463,830 | 2,785,685 | ||||||
Furniture, fixtures, and equipment | 222,121 | 192,250 | ||||||
Real estate held for investment | 4,845,930 | 3,720,013 | ||||||
Accumulated depreciation | (932,149 | ) | (769,917 | ) | ||||
Real estate held for investment, net | $ | 3,913,781 | $ | 2,950,096 | ||||
2004 | 2003 | 2002 | ||||||||||
Balance at beginning of year | $ | 3,720,013 | $ | 3,260,321 | $ | 3,858,579 | ||||||
Real estate acquired | 1,025,066 | 399,425 | (a) | 270,758 | ||||||||
Capital expenditures | 100,851 | 48,110 | 25,028 | |||||||||
Transfers from development | — | 12,157 | 29,816 | |||||||||
Transfers to held for disposition, net | — | — | (923,860 | ) | ||||||||
Balance at end of year | $ | 4,845,930 | $ | 3,720,013 | $ | 3,260,321 | ||||||
(a) | In connection with one of our acquisitions in 2003, United Dominion acquired a note receivable for $5 million that is due October 2011. The note bears interest of 9.0% that is payable in annual installments. |
2004 | 2003 | 2002 | ||||||||||
Balance at beginning of year | $ | 769,917 | $ | 631,570 | $ | 646,366 | ||||||
Depreciation expense for the year(b) | 162,232 | 138,347 | 128,961 | |||||||||
Transfers to held for disposition, net | — | — | (143,757 | ) | ||||||||
Balance at end of year | $ | 932,149 | $ | 769,917 | $ | 631,570 | ||||||
(b) | Includes $0.8 million, $1.0 million, and $1.2 million for 2004, 2003, and 2002, respectively, related to depreciation on non-real estate assets located at United Dominion’s apartment communities, classified as “Other depreciation and amortization” on the Consolidated Statements of Operations. Excludes |
33
$3.4 million and $1.3 million in 2004 and 2003, respectively, of amortization expense on the fair market value of in-place leases at the time of acquisition. |
Number of | Initial | |||||||||||||||||||
Apartment | Acquisition | Carrying | Accumulated | |||||||||||||||||
Communities | Cost | Value | Depreciation | Encumbrances | ||||||||||||||||
Southern California | 25 | $ | 905,367 | $ | 930,593 | $ | 26,645 | $ | 244,148 | |||||||||||
Tampa, FL | 12 | 211,505 | 244,944 | 48,428 | 60,275 | |||||||||||||||
Houston, TX | 16 | 185,408 | 244,898 | 56,175 | 29,382 | |||||||||||||||
Northern California | 7 | 203,385 | 217,004 | 33,318 | 71,038 | |||||||||||||||
Orlando, FL | 14 | 167,524 | 216,721 | 69,727 | 72,150 | |||||||||||||||
Raleigh, NC | 11 | 179,935 | 212,412 | 59,990 | 76,116 | |||||||||||||||
Metropolitan DC | 6 | 176,475 | 192,083 | 19,301 | 67,112 | |||||||||||||||
Baltimore, MD | 10 | 145,985 | 162,396 | 28,924 | 17,836 | |||||||||||||||
Columbus, OH | 6 | 111,315 | 155,494 | 33,490 | 45,864 | |||||||||||||||
Nashville, TN | 9 | 111,844 | 152,312 | 35,316 | 39,299 | |||||||||||||||
Richmond, VA | 9 | 106,136 | 137,496 | 45,034 | 62,207 | |||||||||||||||
Monterey Peninsula, CA | 7 | 85,324 | 136,665 | 17,670 | — | |||||||||||||||
Phoenix, AZ | 7 | 109,487 | 135,856 | 32,518 | 31,670 | |||||||||||||||
Greensboro, NC | 8 | 85,362 | 107,913 | 30,300 | — | |||||||||||||||
Charlotte, NC | 7 | 88,294 | 106,087 | 26,143 | — | |||||||||||||||
Arlington, TX | 7 | 85,844 | 100,927 | 23,949 | 25,865 | |||||||||||||||
Seattle, WA | 6 | 93,152 | 99,829 | 18,997 | 40,774 | |||||||||||||||
Denver, CO | 3 | 92,333 | 99,179 | 17,362 | — | |||||||||||||||
Dallas, TX | 4 | 89,385 | 94,378 | 12,631 | 54,607 | |||||||||||||||
Wilmington, NC | 6 | 64,213 | 93,902 | 30,851 | — | |||||||||||||||
Portland, OR | 6 | 88,187 | 91,943 | 10,019 | 15,726 | |||||||||||||||
Austin, TX | 5 | 75,778 | 82,080 | 15,310 | 5,391 | |||||||||||||||
Atlanta, GA | 6 | 57,669 | 75,604 | 25,435 | 16,886 | |||||||||||||||
Columbia, SC | 6 | 52,795 | 64,985 | 24,552 | — | |||||||||||||||
Jacksonville, FL | 3 | 44,788 | 61,251 | 21,629 | 12,455 | |||||||||||||||
Norfolk, VA | 6 | 42,741 | 60,184 | 24,567 | 9,118 | |||||||||||||||
Other Southwestern | 10 | 166,469 | 196,114 | 48,179 | 50,677 | |||||||||||||||
Other Florida | 6 | 107,122 | 118,006 | 15,523 | 44,873 | |||||||||||||||
Other North Carolina | 8 | 61,677 | 78,669 | 31,419 | 12,434 | |||||||||||||||
Other Mid-Atlantic | 6 | 46,136 | 56,377 | 17,890 | 16,770 | |||||||||||||||
Other Virginia | 3 | 30,946 | 47,271 | 12,980 | 14,671 | |||||||||||||||
Other Southeastern | 2 | 29,840 | 40,989 | 11,710 | 16,368 | |||||||||||||||
Other Midwestern | 3 | 20,241 | 23,520 | 4,825 | 5,767 | |||||||||||||||
Richmond Corporate | — | 6,597 | 6,216 | 1,259 | 3,792 | |||||||||||||||
Commercial | — | 1,631 | 1,632 | 83 | — | |||||||||||||||
250 | $ | 4,130,890 | $ | 4,845,930 | $ | 932,149 | $ | 1,163,271 | ||||||||||||
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Number | Initial | |||||||||||||||||||
of | Acquisition | Carrying | Accumulated | |||||||||||||||||
Properties | Cost | Value | Depreciation | Encumbrances | ||||||||||||||||
Apartments | 23 | $ | 275,443 | $ | 326,052 | $ | 75,246 | $ | 34,653 | |||||||||||
Land | 2 | 4,769 | 4,769 | — | — | |||||||||||||||
Commercial | 1 | 1,624 | 1,624 | 492 | — | |||||||||||||||
$ | 281,836 | $ | 332,445 | $ | 75,738 | $ | 34,653 | |||||||||||||
Number | Initial | |||||||||||||||||||
of | Acquisition | Carrying | Accumulated | |||||||||||||||||
Properties | Cost | Value | Depreciation | Encumbrances | ||||||||||||||||
Apartments | 3 | $ | 24,814 | $ | 40,241 | $ | — | $ | — | |||||||||||
Land | 7 | 24,679 | 24,680 | — | — | |||||||||||||||
$ | 49,493 | $ | 64,921 | $ | — | $ | — | |||||||||||||
Total Real Estate Owned | $ | 4,462,219 | $ | 5,243,296 | $ | 1,007,887 | $ | 1,197,924 | ||||||||||||
3. | INCOME FROM DISCONTINUED OPERATIONS |
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For the six months ended June 30, 2005, United Dominion sold 11 communities with 2,623 apartment homes, 12 townhomes from a community of 36 townhomes, 26 condominiums from a community of 152 condominiums, and one parcel of land. At June 30, 2005, United Dominion had 11 communities with a total of 3,505 apartment homes and a net book value of $134.7 million and two parcels of land with a net book value of $5.1 million included in real estate held for disposition. For the year ended December 31, 2004, United Dominion sold 19 communities with a total of 5,425 apartment homes, 24 townhomes from a community of 36 townhomes, and one parcel of land. During 2003, United Dominion sold seven communities with a total of 1,927 apartment homes and two commercial properties. During 2002, United Dominion sold 25 communities with a total of 6,990 apartment homes, one parcel of land, and one commercial property. The results of operations for these properties and the interest expense associated with the secured debt on these properties are classified on the Consolidated Statements of Operations in the line item entitled “Income from discontinued operations, net of minority interests.”
2004 | 2003 | 2002 | ||||||||||
Rental income | $ | 71,543 | $ | 98,491 | $ | 134,242 | ||||||
Rental expenses | 32,284 | 41,403 | 54,056 | |||||||||
Real estate depreciation | 15,698 | 24,532 | 31,394 | |||||||||
Interest | 917 | 933 | 5,392 | |||||||||
Loss on early debt retirement | — | — | 3,866 | |||||||||
Impairment loss on real estate | — | — | 2,301 | |||||||||
Other expenses | 146 | 226 | 301 | |||||||||
49,045 | 67,094 | 97,310 | ||||||||||
Income before net gain on sale of land and depreciable property, and minority interests | 22,498 | 31,397 | 36,932 | |||||||||
Net gain on the sale of land and depreciable property | 52,903 | 15,941 | 32,698 | |||||||||
Income before minority interests | 75,401 | 47,338 | 69,630 | |||||||||
Minority interests on income from discontinued operations | (4,758 | ) | (3,015 | ) | (4,303 | ) | ||||||
Income from discontinued operations, net of minority interests | $ | 70,643 | $ | 44,323 | $ | 65,327 | ||||||
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4. | SECURED DEBT |
Weighted | Weighted | Number of | ||||||||||||||||||
Average | Average | Properties | ||||||||||||||||||
Principal Outstanding | Interest Rate | Years to Maturity | Encumbered | |||||||||||||||||
2004 | 2003 | 2004 | 2004 | 2004 | ||||||||||||||||
Fixed Rate Debt | ||||||||||||||||||||
Mortgage notes payable | $ | 428,223 | $ | 174,520 | 5.76 | % | 5.8 | 21 | ||||||||||||
Tax-exempt secured notes payable | 39,160 | 42,540 | 6.14 | % | 16.9 | 4 | ||||||||||||||
Fannie Mae credit facilities | 288,875 | 288,875 | 6.40 | % | 6.2 | 9 | ||||||||||||||
Fannie Mae credit facilities — swapped | — | 17,000 | n/a | n/a | n/a | |||||||||||||||
Total fixed rate secured debt | 756,258 | 522,935 | 6.03 | % | 6.5 | 34 | ||||||||||||||
Variable Rate Debt | ||||||||||||||||||||
Mortgage notes payable | 45,758 | 46,185 | 3.01 | % | 7.1 | 4 | ||||||||||||||
Tax-exempt secured note payable | 7,770 | 7,770 | 1.72 | % | 23.5 | 1 | ||||||||||||||
Fannie Mae credit facilities | 367,469 | 370,469 | 2.67 | % | 7.6 | 47 | ||||||||||||||
Freddie Mac credit facility | 20,669 | 70,669 | 2.64 | % | 2.2 | 8 | ||||||||||||||
Total variable rate secured debt | 441,666 | 495,093 | 2.68 | % | 7.6 | 60 | ||||||||||||||
Total secured debt | $ | 1,197,924 | $ | 1,018,028 | 4.79 | % | 6.9 | 94 | ||||||||||||
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Fixed | Variable | |||||||||||||||||||||||||||||
Mortgage | Tax-Exempt | Credit | Mortgage | Tax-Exempt | Credit | |||||||||||||||||||||||||
Year | Notes | Notes | Facilities | Notes | Notes | Facilities | TOTAL | |||||||||||||||||||||||
2005 | $ | 22,945 | $ | 305 | $ | — | $ | 4,642 | $ | — | $ | — | $ | 27,892 | ||||||||||||||||
2006 | 63,879 | 320 | — | 3,701 | — | — | 67,900 | |||||||||||||||||||||||
2007 | 87,481 | 345 | — | — | — | 20,669 | 108,495 | |||||||||||||||||||||||
2008 | 8,538 | 5,145 | — | — | — | — | 13,683 | |||||||||||||||||||||||
2009 | 26,768 | 245 | — | — | — | — | 27,013 | |||||||||||||||||||||||
2010 | 71,084 | 265 | 138,875 | — | — | — | 210,224 | |||||||||||||||||||||||
2011 | 11,759 | 280 | 50,000 | — | — | 114,513 | 176,552 | |||||||||||||||||||||||
2012 | 58,834 | 300 | 100,000 | — | — | 52,956 | 212,090 | |||||||||||||||||||||||
2013 | 61,751 | 315 | — | 37,415 | — | 200,000 | 299,481 | |||||||||||||||||||||||
2014 | 651 | 340 | — | — | — | — | 991 | |||||||||||||||||||||||
2015 | 703 | 12,815 | — | — | — | — | 13,518 | |||||||||||||||||||||||
2016 | 760 | — | — | — | — | — | 760 | |||||||||||||||||||||||
2017 | 821 | — | — | — | — | — | 821 | |||||||||||||||||||||||
2018 | 887 | — | — | — | — | — | 887 | |||||||||||||||||||||||
2019 | 958 | — | — | — | — | — | 958 | |||||||||||||||||||||||
Thereafter | 10,404 | 18,485 | — | — | 7,770 | — | 36,659 | |||||||||||||||||||||||
$ | 428,223 | $ | 39,160 | $ | 288,875 | $ | 45,758 | $ | 7,770 | $ | 388,138 | $ | 1,197,924 | |||||||||||||||||
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5. | UNSECURED DEBT |
2004 | 2003 | ||||||||
Commercial Banks | |||||||||
Borrowings outstanding under an unsecured credit facility due March 2006(a) | $ | 278,100 | $ | 137,900 | |||||
Senior Unsecured Notes — Other | |||||||||
7.67% Medium-Term Notes due January 2004 | — | 46,585 | |||||||
7.73% Medium-Term Notes due April 2005 | 21,100 | 21,100 | |||||||
7.02% Medium-Term Notes due November 2005 | 49,760 | 49,760 | |||||||
Verano Construction Loan due February 2006 | 24,820 | — | |||||||
7.95% Medium-Term Notes due July 2006 | 85,374 | 85,374 | |||||||
7.07% Medium-Term Notes due November 2006 | 25,000 | 25,000 | |||||||
7.25% Notes due January 2007 | 92,255 | 92,255 | |||||||
4.30% Medium-Term Notes due July 2007 | 75,000 | — | |||||||
4.50% Medium-Term Notes due March 2008 | 200,000 | 200,000 | |||||||
ABAG Tax-Exempt Bonds due August 2008 | 46,700 | 46,700 | |||||||
8.50% Monthly Income Notes due November 2008 | 29,081 | 29,081 | |||||||
4.25% Medium-Term Notes due January 2009 | 50,000 | 50,000 | |||||||
6.50% Notes due June 2009 | 200,000 | 200,000 | |||||||
3.90% Medium-Term Notes due March 2010 | 50,000 | — | |||||||
5.00% Medium-Term Notes due January 2012 | 100,000 | — | |||||||
5.13% Medium-Term Notes due January 2014 | 200,000 | 75,000 | |||||||
5.25% Medium-Term Notes due January 2015 | 100,000 | — | |||||||
8.50% Debentures due September 2024 | 54,118 | 54,118 | |||||||
Other(b) | 750 | 1,136 | |||||||
1,403,958 | 976,109 | ||||||||
Total Unsecured Debt | $ | 1,682,058 | $ | 1,114,009 | |||||
(a) | United Dominion has a three-year $500 million unsecured revolving credit facility. If United Dominion receives commitments from additional lenders or if the initial lenders increase their commitments, United Dominion will be able to increase the credit facility to $650 million. At United Dominion’s option, the credit facility can be extended for one year to March 2007. |
39
The following is a summary of short-term bank borrowings under United Dominion’s bank credit facility at December 31, (dollars in thousands): |
2004 | 2003 | 2002 | ||||||||||
Total revolving credit facilities at December 31 | $ | 500,000 | $ | 500,000 | $ | 475,000 | ||||||
Borrowings outstanding at December 31 | 278,100 | 137,900 | 275,800 | |||||||||
Weighted average daily borrowings during the year | 127,665 | 171,179 | 256,493 | |||||||||
Maximum daily borrowings during the year | 356,500 | 272,800 | 411,600 | |||||||||
Weighted average interest rate during the year | 2.0 | % | 2.1 | % | 3.0 | % | ||||||
Weighted average interest rate at December 31 | 2.7 | % | 1.6 | % | 2.5 | % | ||||||
Weighted average interest rate at December 31 — after giving effect to swap agreements | 2.7 | % | 4.2 | % | 6.8 | % |
At December 31, 2004, all of United Dominion’s interest rate swap agreements associated with commercial bank borrowings had matured. |
(b) | Represents deferred gains from the termination of interest rate risk management agreements. |
6. | STOCKHOLDERS’ EQUITY |
40
41
7. | FINANCIAL INSTRUMENTS |
2004 | 2003 | |||||||||||||||
Carrying | Carrying | |||||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
Secured debt | $ | 1,197,924 | $ | 1,228,953 | $ | 1,018,028 | $ | 1,063,415 | ||||||||
Unsecured debt | 1,682,058 | 1,654,760 | 1,114,009 | 1,162,910 | ||||||||||||
Interest rate swap agreements | n/a | n/a | (1,633 | ) | (1,633 | ) |
42
8. | EMPLOYEE BENEFIT PLANS |
43
2002 | ||||
Risk free interest rate | 4.1 | % | ||
Dividend yield | 7.7 | % | ||
Volatility factor | 0.177 | |||
Weighted average expected life (years) | 4 |
2003 | 2002 | ||||||||
Reported net income available to common stockholders | $ | 24,807 | $ | 25,805 | |||||
Compensation expense for stock options determined under the fair value based method | (292 | ) | (380 | ) | |||||
Pro forma net income available to common stockholders | $ | 24,515 | $ | 25,425 | |||||
Earnings per common share — basic | |||||||||
As reported | $ | 0.22 | $ | 0.24 | |||||
Pro forma | 0.21 | 0.24 | |||||||
Earnings per common share — diluted | |||||||||
As reported | $ | 0.22 | $ | 0.24 | |||||
Pro forma | 0.21 | 0.24 |
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Number | Weighted Average | Range of | ||||||||||
Outstanding | Exercise Price | Exercise Prices | ||||||||||
Balance, December 31, 2001 | 4,612,372 | $ | 11.90 | $ | 9.63-$15.38 | |||||||
Granted | 143,548 | 14.26 | 14.15-14.88 | |||||||||
Exercised | (1,000,592 | ) | 11.68 | 9.63-15.38 | ||||||||
Forfeited | (87,999 | ) | 11.04 | 9.63-15.25 | ||||||||
Balance, December 31, 2002 | 3,667,329 | $ | 12.01 | $ | 9.63-$15.38 | |||||||
Granted | — | — | — | |||||||||
Exercised | (1,106,142 | ) | 12.41 | 9.63-15.38 | ||||||||
Forfeited | (25,000 | ) | 9.65 | 9.63-9.88 | ||||||||
Balance, December 31, 2003 | 2,536,187 | $ | 11.88 | $ | 9.63-$15.38 | |||||||
Granted | — | — | — | |||||||||
Exercised | (562,064 | ) | 11.90 | 9.63-15.25 | ||||||||
Forfeited | (13,500 | ) | 12.02 | 10.88-13.96 | ||||||||
Balance, December 31, 2004 | 1,960,623 | $ | 11.88 | $ | 9.63-$15.38 | |||||||
Exercisable at December 31, | ||||||||||||
2002 | 2,793,811 | $ | 11.97 | $ | 9.63-$15.38 | |||||||
2003 | 2,207,685 | 11.77 | 9.63-15.38 | |||||||||
2004 | 1,938,343 | 11.84 | 9.63-15.38 |
9. | COMMITMENTS AND CONTINGENCIES |
Real Estate Under Development |
Land and Other Leases |
45
Ground | Operating | ||||||||
Leases | Leases | ||||||||
2005 | $ | 1,060 | $ | 649 | |||||
2006 | 1,060 | 320 | |||||||
2007 | 1,060 | 65 | |||||||
2008 | 1,060 | 4 | |||||||
2009 | 1,064 | — | |||||||
Thereafter | 22,303 | — | |||||||
Total | $ | 27,607 | $ | 1,038 | |||||
Series B Out-Performance Program |
i. determining the amount by which the cumulative total return of United Dominion’s common stock over the measurement period exceeds the greater of the cumulative total return of the Morgan Stanley REIT Index, which is the peer group index, or the minimum return (such excess being the “excess return”); | |
ii. multiplying 5% of the excess return by United Dominion’s market capitalization (defined as the average number of shares outstanding over the 24-month period, including common stock, OP Units, outstanding options, and convertible securities) multiplied by the daily closing price of United Dominion’s common stock, up to a maximum of 2% of market capitalization; and |
46
iii. dividing the number obtained in (ii) by the market value of one share of United Dominion’s common stock on the valuation date, determined by the volume-weighted average price per day of common stock for the 20 trading days immediately preceding the valuation date. |
Litigation and Legal Matters |
10. | INDUSTRY SEGMENTS |
11. | UNAUDITED SUMMARIZED CONSOLIDATED QUARTERLY FINANCIAL DATA |
Three Months Ended | |||||||||||||||||||||||||||||||||
Previously | Previously | Previously | Previously | ||||||||||||||||||||||||||||||
Reported | Restated | Reported | Restated | Reported | Restated | Reported | Restated | ||||||||||||||||||||||||||
March 31(a) | March 31(a) | June 30(a) | June 30(a) | September 30(a) | September 30(a) | December 31(a) | December 31(a) | ||||||||||||||||||||||||||
Rental income(b) | $ | 143,282 | $ | 136,828 | $ | 146,965 | $ | 140,651 | $ | 150,191 | $ | 143,868 | $ | 163,832 | $ | 157,603 | |||||||||||||||||
Income before minority interests and discontinued operations | 9,917 | 8,283 | 11,538 | 10,081 | 5,163 | 3,824 | 5,838 | 4,588 | |||||||||||||||||||||||||
Gain on sale of land and depreciable property | 1,205 | 1,205 | 13,814 | 13,814 | 20,220 | 20,220 | 17,664 | 17,664 | |||||||||||||||||||||||||
Income from discontinued operations, net of minority interests | 5,682 | 7,213 | 17,335 | 18,700 | 22,611 | 23,866 | 19,689 | 20,864 | |||||||||||||||||||||||||
Net income available to common stockholders | 8,665 | 8,665 | 21,855 | 21,855 | 21,160 | 21,160 | 20,212 | 20,212 | |||||||||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.07 | $ | 0.07 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.15 | $ | 0.15 | |||||||||||||||||
Diluted | 0.07 | 0.07 | 0.17 | 0.17 | 0.17 | 0.17 | 0.15 | 0.15 |
(a) | The first, second, and third quarters of 2004 each include $1.6 million of expense for premiums paid for the conversion of shares of Series D preferred stock into common stock. The fourth quarter of |
47
2004 includes $1.0 million of expense for premiums paid for the conversion of shares of Series D preferred stock into common stock. | |
(b) | Represents rental income from continuing operations. |
Three Months Ended | |||||||||||||||||||||||||||||||||
Previously | Previously | Previously | Previously | ||||||||||||||||||||||||||||||
Reported | Restated | Reported | Restated | Reported | Restated | Reported | Restated | ||||||||||||||||||||||||||
March 31 | March 31 | June 30(a) | June 30(a) | September 30(a) | September 30(a) | December 31(a) | December 31(a) | ||||||||||||||||||||||||||
Rental income(b) | $ | 133,052 | $ | 126,136 | $ | 134,085 | $ | 127,257 | $ | 137,025 | $ | 130,400 | $ | 138,732 | $ | 132,285 | |||||||||||||||||
Income before minority interests and discontinued operations | 6,400 | 4,234 | 9,730 | 7,569 | 8,421 | 6,534 | 8,569 | 6,990 | |||||||||||||||||||||||||
Gain/(loss) on sale of land and depreciable property | 1,045 | 1,045 | (112 | ) | (112 | ) | 7,215 | 7,215 | 7,793 | 7,793 | |||||||||||||||||||||||
Income from discontinued operations, net of minority interests | 7,375 | 9,403 | 5,736 | 7,759 | 12,035 | 13,802 | 11,880 | 13,359 | |||||||||||||||||||||||||
Net income available to common stockholders | 6,494 | 6,494 | 2,702 | 2,702 | 1,242 | 1,242 | 14,369 | 14,369 | |||||||||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.06 | $ | 0.06 | $ | 0.02 | $ | 0.02 | $ | 0.01 | $ | 0.01 | $ | 0.13 | $ | 0.13 | |||||||||||||||||
Diluted | 0.06 | 0.06 | 0.02 | 0.02 | 0.01 | 0.01 | 0.13 | 0.13 |
(a) | The second, third, and fourth quarters of 2003 include $6.3 million, $12.1 million, and $0.9 million of expense, respectively, for premiums paid for the conversion of shares of Series D preferred stock into common stock. |
(b) | Represents rental income from continuing operations. |
48
SCHEDULE III — REAL ESTATE OWNED
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)
Cost of | Gross Amount at | |||||||||||||||||||||||||||||||||||||||||||
Initial Costs | Improvements | Which Carried at | ||||||||||||||||||||||||||||||||||||||||||
Total | Capitalized | Close of Period | ||||||||||||||||||||||||||||||||||||||||||
Land and | Buildings | Initial | Subsequent | Land and | Buildings | Total | ||||||||||||||||||||||||||||||||||||||
Land | and | Acquisition | to Acquisition | Land | and | Carrying | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||
Encumbrances | Improvements | Improvements | Costs | (Net of Disposals) | Improvements | Improvements | Value (A) | Depreciation (B) | Construction | Acquired | ||||||||||||||||||||||||||||||||||
Pine Avenue | $ | 11,191 | $ | 2,158 | $ | 8,888 | $ | 11,046 | $ | 3,990 | $ | 2,855 | $ | 12,181 | $ | 15,036 | $ | 2,364 | 1987 | 12/07/98 | ||||||||||||||||||||||||
Grand Terrace | — | 2,144 | 6,595 | 8,739 | 1,386 | 2,248 | 7,877 | 10,125 | 1,977 | 1986 | 06/30/99 | |||||||||||||||||||||||||||||||||
Windemere at Sycamore Highland | — | 5,810 | 23,450 | 29,260 | 312 | 5,812 | 23,760 | 29,572 | 3,043 | 2001 | 11/21/02 | |||||||||||||||||||||||||||||||||
Harbor Greens | — | 20,477 | 28,538 | 49,015 | 5,313 | 20,476 | 33,852 | 54,328 | 2,792 | 1965 | 06/12/03 | |||||||||||||||||||||||||||||||||
Pine Brook Village | 18,270 | 2,582 | 25,504 | 28,086 | 2,268 | 2,582 | 27,772 | 30,354 | 2,370 | 1979 | 06/12/03 | |||||||||||||||||||||||||||||||||
Windjammer | 19,145 | 7,345 | 22,623 | 29,968 | 3,192 | 7,345 | 25,815 | 33,160 | 2,116 | 1971 | 06/12/03 | |||||||||||||||||||||||||||||||||
Huntington Vista | — | 8,056 | 22,486 | 30,542 | 2,284 | 8,055 | 24,771 | 32,826 | 2,095 | 1970 | 06/12/03 | |||||||||||||||||||||||||||||||||
Pacific Palms | — | 12,285 | 6,181 | 18,466 | 535 | 12,304 | 6,697 | 19,001 | 618 | 1962 | 07/31/03 | |||||||||||||||||||||||||||||||||
Missions at Back Bay | — | 229 | 14,129 | 14,358 | 113 | 10,619 | 3,852 | 14,471 | 267 | 1969 | 12/16/03 | |||||||||||||||||||||||||||||||||
Presidio at Rancho Del Oro | 13,325 | 9,164 | 22,695 | 31,859 | 359 | 9,184 | 23,034 | 32,218 | 720 | 1987 | 06/25/04 | |||||||||||||||||||||||||||||||||
Coronado at Newport — North | 56,481 | 62,516 | 46,082 | 108,598 | 1,461 | 62,516 | 47,543 | 110,059 | 521 | 1968 | 10/28/04 | |||||||||||||||||||||||||||||||||
Huntington Villas | — | 61,535 | 18,017 | 79,552 | 123 | 61,537 | 18,138 | 79,675 | 298 | 1972 | 09/30/04 | |||||||||||||||||||||||||||||||||
Villa Venetia | — | 70,825 | 24,179 | 95,004 | 87 | 70,825 | 24,266 | 95,091 | 278 | 1972 | 10/28/04 | |||||||||||||||||||||||||||||||||
The Crest | 61,350 | 21,954 | 67,809 | 89,763 | (27 | ) | 21,954 | 67,782 | 89,736 | 1,010 | 1989 | 09/30/04 | ||||||||||||||||||||||||||||||||
Vista Del Rey | — | 10,671 | 7,080 | 17,751 | 75 | 10,671 | 7,155 | 17,826 | 112 | 1969 | 09/30/04 | |||||||||||||||||||||||||||||||||
Foxborough | — | 12,071 | 6,187 | 18,258 | 88 | 12,075 | 6,271 | 18,346 | 99 | 1969 | 09/30/04 | |||||||||||||||||||||||||||||||||
Villas at Carlsbad | 9,653 | 6,517 | 10,717 | 17,234 | 276 | 6,517 | 10,993 | 17,510 | 116 | 1966 | 10/28/04 | |||||||||||||||||||||||||||||||||
Rosebeach | — | 8,414 | 17,449 | 25,863 | 88 | 8,414 | 17,537 | 25,951 | 264 | 1970 | 09/30/04 | |||||||||||||||||||||||||||||||||
The Villas at San Dimas | 13,084 | 8,181 | 16,735 | 24,916 | 113 | 8,181 | 16,848 | 25,029 | 181 | 1981 | 10/28/04 | |||||||||||||||||||||||||||||||||
The Villas at Bonita | 8,324 | 4,498 | 11,699 | 16,197 | 86 | 4,498 | 11,785 | 16,283 | 127 | 1981 | 10/28/04 | |||||||||||||||||||||||||||||||||
Ocean Villa | 10,089 | 5,135 | 12,788 | 17,923 | 346 | 5,135 | 13,134 | 18,269 | 139 | 1965 | 10/28/04 | |||||||||||||||||||||||||||||||||
Waterstone at Murrieta | — | 10,598 | 34,703 | 45,301 | 151 | 10,598 | 34,854 | 45,452 | 345 | 1990 | 11/02/04 | |||||||||||||||||||||||||||||||||
Summit at Mission Bay | — | 22,599 | 17,181 | 39,780 | 136 | 22,599 | 17,317 | 39,916 | 180 | 1953 | 11/01/04 | |||||||||||||||||||||||||||||||||
The Arboretum | 23,236 | 29,562 | 14,146 | 43,708 | 700 | 29,562 | 14,846 | 44,408 | 163 | 1970 | 10/28/04 | |||||||||||||||||||||||||||||||||
Rancho Vallecitos | — | 3,303 | 10,877 | 14,180 | 1,771 | 3,420 | 12,531 | 15,951 | 4,450 | 1988 | 10/13/99 | |||||||||||||||||||||||||||||||||
Southern California | 244,148 | 408,629 | 496,738 | 905,367 | 25,226 | 419,982 | 510,611 | 930,593 | 26,645 | |||||||||||||||||||||||||||||||||||
Bay Cove | — | 2,929 | 6,578 | 9,507 | 5,639 | 3,528 | 11,618 | 15,146 | 5,982 | 1972 | 12/16/92 | |||||||||||||||||||||||||||||||||
Summit West | — | 2,176 | 4,710 | 6,886 | 4,115 | 2,530 | 8,471 | 11,001 | 4,395 | 1972 | 12/16/92 | |||||||||||||||||||||||||||||||||
Pinebrook | — | 1,780 | 2,458 | 4,238 | 3,907 | 2,037 | 6,108 | 8,145 | 3,811 | 1977 | 09/28/93 | |||||||||||||||||||||||||||||||||
Lakewood Place | 9,856 | 1,395 | 10,647 | 12,042 | 2,206 | 1,650 | 12,598 | 14,248 | 4,996 | 1986 | 03/10/94 | |||||||||||||||||||||||||||||||||
Hunter’s Ridge | 10,312 | 2,462 | 10,942 | 13,404 | 2,625 | 3,016 | 13,013 | 16,029 | 5,010 | 1992 | 06/30/95 | |||||||||||||||||||||||||||||||||
Bay Meadow | — | 2,892 | 9,254 | 12,146 | 3,616 | 3,459 | 12,303 | 15,762 | 4,398 | 1985 | 12/09/96 | |||||||||||||||||||||||||||||||||
Cambridge | — | 1,791 | 7,166 | 8,957 | 2,016 | 2,127 | 8,846 | 10,973 | 3,011 | 1985 | 06/06/97 | |||||||||||||||||||||||||||||||||
Laurel Oaks | — | 1,362 | 6,542 | 7,904 | 1,926 | 1,614 | 8,216 | 9,830 | 2,686 | 1986 | 07/01/97 | |||||||||||||||||||||||||||||||||
Parker’s Landing | — | 10,178 | 37,869 | 48,047 | 3,743 | 9,381 | 42,409 | 51,790 | 9,455 | 1991 | 12/07/98 | |||||||||||||||||||||||||||||||||
Sugar Mill Creek | 7,633 | 2,242 | 7,553 | 9,795 | 1,307 | 2,391 | 8,711 | 11,102 | 2,090 | 1988 | 12/07/98 | |||||||||||||||||||||||||||||||||
Inlet Bay | — | 7,702 | 23,150 | 30,852 | 2,283 | 7,729 | 25,406 | 33,135 | 2,401 | 1988/89 | 06/30/03 | |||||||||||||||||||||||||||||||||
MacAlpine Place | 32,474 | 10,869 | 36,858 | 47,727 | 56 | 10,869 | 36,914 | 47,783 | 193 | 2001 | 12/01/04 | |||||||||||||||||||||||||||||||||
Tampa, FL | 60,275 | 47,778 | 163,727 | 211,505 | 33,439 | 50,331 | 194,613 | 244,944 | 48,428 | |||||||||||||||||||||||||||||||||||
Woodtrail | — | 1,543 | 5,457 | 7,000 | 2,871 | 1,766 | 8,105 | 9,871 | 3,435 | 1978 | 12/31/96 | |||||||||||||||||||||||||||||||||
Green Oaks | — | 5,314 | 19,626 | 24,940 | 4,179 | 6,079 | 23,040 | 29,119 | 7,314 | 1985 | 06/25/97 | |||||||||||||||||||||||||||||||||
Sky Hawk | — | 2,298 | 7,158 | 9,456 | 2,371 | 2,753 | 9,074 | 11,827 | 3,458 | 1984 | 05/08/97 | |||||||||||||||||||||||||||||||||
South Grand at Pecan Grove | 5,812 | 4,058 | 14,756 | 18,814 | 6,438 | 4,954 | 20,298 | 25,252 | 6,665 | 1985 | 09/26/97 | |||||||||||||||||||||||||||||||||
Braesridge | 9,985 | 3,048 | 10,962 | 14,010 | 2,826 | 3,524 | 13,312 | 16,836 | 4,285 | 1982 | 09/26/97 | |||||||||||||||||||||||||||||||||
Skylar Pointe | — | 3,604 | 11,592 | 15,196 | 4,931 | 3,751 | 16,376 | 20,127 | 5,902 | 1979 | 11/20/97 | |||||||||||||||||||||||||||||||||
Stone Canyon | — | 900 | — | 900 | 9,513 | 1,328 | 9,085 | 10,413 | 2,447 | 1998 | 12/17/97 | |||||||||||||||||||||||||||||||||
Chelsea Park | 4,741 | 1,991 | 5,788 | 7,779 | 2,422 | 2,457 | 7,744 | 10,201 | 2,612 | 1983 | 03/27/98 | |||||||||||||||||||||||||||||||||
Country Club Place | 3,918 | 499 | 6,520 | 7,019 | 1,458 | 680 | 7,797 | 8,477 | 2,286 | 1985 | 03/27/98 | |||||||||||||||||||||||||||||||||
Arbor Ridge | 1,290 | 1,689 | 6,684 | 8,373 | 929 | 2,112 | 7,190 | 9,302 | 2,379 | 1983 | 03/27/98 | |||||||||||||||||||||||||||||||||
London Park | 1,918 | 2,018 | 6,668 | 8,686 | 2,402 | 2,522 | 8,566 | 11,088 | 2,961 | 1983 | 03/27/98 | |||||||||||||||||||||||||||||||||
Marymont | — | 1,151 | 4,155 | 5,306 | 1,185 | 1,184 | 5,307 | 6,491 | 1,377 | 1983 | 03/27/98 | |||||||||||||||||||||||||||||||||
Riviera Pines | 1,718 | 1,414 | 6,454 | 7,868 | 1,720 | 1,486 | 8,102 | 9,588 | 1,871 | 1979 | 03/27/98 | |||||||||||||||||||||||||||||||||
Towne Lake | — | 1,334 | 5,309 | 6,643 | 1,842 | 1,654 | 6,831 | 8,485 | 2,296 | 1984 | 03/27/98 | |||||||||||||||||||||||||||||||||
The Legend at Park 10 | — | 1,995 | — | 1,995 | 11,850 | 3,927 | 9,918 | 13,845 | 4,236 | 1998 | 05/19/98 | |||||||||||||||||||||||||||||||||
The Bradford | — | 1,151 | 40,272 | 41,423 | 2,553 | 6,616 | 37,360 | 43,976 | 2,651 | 1990/91 | 11/20/03 | |||||||||||||||||||||||||||||||||
Houston, TX | 29,382 | 34,007 | 151,401 | 185,408 | 59,490 | 46,793 | 198,105 | �� | 244,898 | 56,175 | ||||||||||||||||||||||||||||||||||
Foothills Tennis Village | 13,735 | 3,618 | 14,542 | 18,160 | 1,396 | 3,746 | 15,810 | 19,556 | 3,480 | 1988 | 12/07/98 | |||||||||||||||||||||||||||||||||
Woodlake Village | 26,811 | 6,772 | 26,967 | 33,739 | 2,985 | 7,026 | 29,698 | 36,724 | 6,928 | 1979 | 12/07/98 | |||||||||||||||||||||||||||||||||
2000 Post Street | — | 9,861 | 44,578 | 54,439 | 1,088 | 9,964 | 45,563 | 55,527 | 7,599 | 1987 | 12/07/98 |
49
SCHEDULE III — REAL ESTATE OWNED
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)
Cost of | Gross Amount at | |||||||||||||||||||||||||||||||||||||||||||
Initial Costs | Improvements | Which Carried at | ||||||||||||||||||||||||||||||||||||||||||
Total | Capitalized | Close of Period | ||||||||||||||||||||||||||||||||||||||||||
Land and | Buildings | Initial | Subsequent | Land and | Buildings | Total | ||||||||||||||||||||||||||||||||||||||
Land | and | Acquisition | to Acquisition | Land | and | Carrying | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||
Encumbrances | Improvements | Improvements | Costs | (Net of Disposals) | Improvements | Improvements | Value (A) | Depreciation (B) | Construction | Acquired | ||||||||||||||||||||||||||||||||||
Birch Creek | 7,584 | 4,365 | 16,696 | 21,061 | 3,081 | 4,632 | 19,510 | 24,142 | 4,067 | 1968 | 12/07/98 | |||||||||||||||||||||||||||||||||
Highlands of Marin | — | 5,996 | 24,868 | 30,864 | 1,054 | 6,090 | 25,828 | 31,918 | 5,064 | 1991 | 12/07/98 | |||||||||||||||||||||||||||||||||
Marina Playa | 12,842 | 6,224 | 23,916 | 30,140 | 3,899 | 6,489 | 27,550 | 34,039 | 5,913 | 1971 | 12/07/98 | |||||||||||||||||||||||||||||||||
Crossroads | 10,066 | 4,812 | 10,170 | 14,982 | 116 | 4,812 | 10,286 | 15,098 | 267 | 1986 | 7/28/04 | |||||||||||||||||||||||||||||||||
Northern California | 71,038 | 41,648 | 161,737 | 203,385 | 13,619 | 42,759 | 174,245 | 217,004 | 33,318 | |||||||||||||||||||||||||||||||||||
Fisherman’s Village | — | 2,387 | 7,459 | 9,846 | 4,236 | 3,175 | 10,907 | 14,082 | 5,033 | 1984 | 12/29/95 | |||||||||||||||||||||||||||||||||
Seabrook | — | 1,846 | 4,155 | 6,001 | 3,930 | 2,335 | 7,596 | 9,931 | 3,736 | 1984 | 02/20/96 | |||||||||||||||||||||||||||||||||
Dover Village | — | 2,895 | 6,456 | 9,351 | 4,511 | 3,459 | 10,403 | 13,862 | 5,732 | 1981 | 03/31/93 | |||||||||||||||||||||||||||||||||
Lakeside North | — | 1,533 | 11,076 | 12,609 | 5,406 | 2,284 | 15,731 | 18,015 | 7,233 | 1984 | 04/14/94 | |||||||||||||||||||||||||||||||||
Regatta Shore | — | 757 | 6,607 | 7,364 | 7,629 | 1,552 | 13,441 | 14,993 | 5,642 | 1988 | 06/30/94 | |||||||||||||||||||||||||||||||||
Alafaya Woods | 8,951 | 1,653 | 9,042 | 10,695 | 2,689 | 2,134 | 11,250 | 13,384 | 4,997 | 1988/90 | 10/21/94 | |||||||||||||||||||||||||||||||||
Vinyards | 8,115 | 1,840 | 11,572 | 13,412 | 3,894 | 2,500 | 14,806 | 17,306 | 6,595 | 1984/86 | 10/31/94 | |||||||||||||||||||||||||||||||||
Andover Place | 13,035 | 3,692 | 7,757 | 11,449 | 3,852 | 4,518 | 10,783 | 15,301 | 5,014 | 1988 | 09/29/95 | |||||||||||||||||||||||||||||||||
& 09/30/96 | ||||||||||||||||||||||||||||||||||||||||||||
Los Altos | 12,135 | 2,804 | 12,349 | 15,153 | 3,383 | 3,375 | 15,161 | 18,536 | 5,402 | 1990 | 10/31/96 | |||||||||||||||||||||||||||||||||
Lotus Landing | — | 2,185 | 8,639 | 10,824 | 2,277 | 2,419 | 10,682 | 13,101 | 3,351 | 1985 | 07/01/97 | |||||||||||||||||||||||||||||||||
Seville on the Green | — | 1,282 | 6,498 | 7,780 | 2,642 | 1,544 | 8,878 | 10,422 | 2,740 | 1986 | 10/21/97 | |||||||||||||||||||||||||||||||||
Arbors at Lee Vista | 13,394 | 3,976 | 16,920 | 20,896 | 2,571 | 4,412 | 19,055 | 23,467 | 5,238 | 1991 | 12/31/97 | |||||||||||||||||||||||||||||||||
Heron Lake | 2,534 | 1,446 | 9,288 | 10,734 | 1,750 | 1,623 | 10,861 | 12,484 | 3,077 | 1989 | 03/27/98 | |||||||||||||||||||||||||||||||||
Ashton at Waterford | 13,986 | 3,872 | 17,538 | 21,410 | 427 | 3,912 | 17,925 | 21,837 | 5,937 | 2000 | 5/28/98 | |||||||||||||||||||||||||||||||||
Orlando, FL | 72,150 | 32,168 | 135,356 | 167,524 | 49,197 | 39,242 | 177,479 | 216,721 | 69,727 | |||||||||||||||||||||||||||||||||||
Dominion on Spring Forest | — | 1,257 | 8,586 | 9,843 | 4,846 | 1,737 | 12,952 | 14,689 | 7,375 | 1978/81 | 05/21/91 | |||||||||||||||||||||||||||||||||
Dominion Park Green | — | 500 | 4,322 | 4,822 | 2,198 | 720 | 6,300 | 7,020 | 3,294 | 1987 | 09/27/91 | |||||||||||||||||||||||||||||||||
Dominion on Lake Lynn | 16,250 | 3,622 | 12,405 | 16,027 | 5,078 | 4,289 | 16,816 | 21,105 | 6,583 | 1986 | 12/01/92 | |||||||||||||||||||||||||||||||||
Dominion Courtney Place | 7,105 | 1,115 | 5,119 | 6,234 | 4,027 | 1,475 | 8,786 | 10,261 | 4,341 | 1979/81 | 07/08/93 | |||||||||||||||||||||||||||||||||
Dominion Walnut Ridge | 10,148 | 1,791 | 11,969 | 13,760 | 3,086 | 2,205 | 14,641 | 16,846 | 5,950 | 1982/84 | 03/04/94 | |||||||||||||||||||||||||||||||||
Dominion Walnut Creek | 16,055 | 3,170 | 21,717 | 24,887 | 5,617 | 3,778 | 26,726 | 30,504 | 10,332 | 1985/86 | 05/17/94 | |||||||||||||||||||||||||||||||||
Dominion Ramsgate | — | 908 | 6,819 | 7,727 | 1,704 | 1,051 | 8,380 | 9,431 | 2,697 | 1988 | 08/15/96 | |||||||||||||||||||||||||||||||||
Copper Mill | — | 1,548 | 16,067 | 17,615 | 1,413 | 1,853 | 17,175 | 19,028 | 4,834 | 1997 | 12/31/96 | |||||||||||||||||||||||||||||||||
Trinity Park | 10,585 | 4,580 | 17,576 | 22,156 | 1,864 | 4,655 | 19,365 | 24,020 | 5,420 | 1987 | 02/28/97 | |||||||||||||||||||||||||||||||||
Meadows at Kildaire | 15,973 | 2,846 | 20,768 | 23,614 | 2,022 | 6,921 | 18,715 | 25,636 | 5,201 | 2000 | 05/25/00 | |||||||||||||||||||||||||||||||||
Oaks at Weston | — | 9,944 | 23,306 | 33,250 | 622 | 10,196 | 23,676 | 33,872 | 3,963 | 2001 | 06/28/02 | |||||||||||||||||||||||||||||||||
Raleigh, NC | 76,116 | 31,281 | 148,654 | 179,935 | 32,477 | 38,880 | 173,532 | 212,412 | 59,990 | |||||||||||||||||||||||||||||||||||
Dominion Middle Ridge | 17,769 | 3,312 | 13,283 | 16,595 | 2,636 | 3,495 | 15,736 | 19,231 | 4,843 | 1990 | 06/25/96 | |||||||||||||||||||||||||||||||||
Dominion Lake Ridge | 12,922 | 2,366 | 8,386 | 10,752 | 1,636 | 2,548 | 9,840 | 12,388 | 3,419 | 1987 | 02/23/96 | |||||||||||||||||||||||||||||||||
Presidential Greens | 19,492 | 11,238 | 18,790 | 30,028 | 1,285 | 11,342 | 19,971 | 31,313 | 3,220 | 1938 | 05/15/02 | |||||||||||||||||||||||||||||||||
Taylor Place | — | 6,418 | 13,411 | 19,829 | 3,716 | 6,559 | 16,986 | 23,545 | 2,730 | 1962 | 04/17/02 | |||||||||||||||||||||||||||||||||
Ridgewood Apartments | 12,215 | 5,612 | 20,086 | 25,698 | 2,591 | 5,682 | 22,607 | 28,289 | 3,123 | 1988 | 08/26/02 | |||||||||||||||||||||||||||||||||
The Calvert | 4,714 | 263 | 11,112 | 11,375 | 1,157 | 2,330 | 10,202 | 12,532 | 715 | 1962 | 11/26/03 | |||||||||||||||||||||||||||||||||
Commons at Town Square | — | 136 | 10,012 | 10,148 | 574 | 9,154 | 1,568 | 10,722 | 133 | 1971 | 12/03/03 | |||||||||||||||||||||||||||||||||
Waterside Towers | — | 874 | 46,426 | 47,300 | 1,719 | 34,673 | 14,346 | 49,019 | 1,018 | 1971 | 12/03/03 | |||||||||||||||||||||||||||||||||
Waterside Townhomes | — | 129 | 4,621 | 4,750 | 294 | 3,638 | 1,406 | 5,044 | 100 | 1971 | 12/03/03 | |||||||||||||||||||||||||||||||||
Metropolitan DC | 67,112 | 30,348 | 146,127 | 176,475 | 15,608 | 79,421 | 112,662 | 192,083 | 19,301 | |||||||||||||||||||||||||||||||||||
Gatewater Landing | — | 2,078 | 6,085 | 8,163 | 2,868 | 2,236 | 8,795 | 11,031 | 3,811 | 1970 | 12/16/92 | |||||||||||||||||||||||||||||||||
Dominion Kings Place | — | 1,565 | 7,007 | 8,572 | 1,677 | 1,667 | 8,582 | 10,249 | 3,489 | 1983 | 12/29/92 | |||||||||||||||||||||||||||||||||
Dominion at Eden Brook | — | 2,361 | 9,384 | 11,745 | 2,523 | 2,491 | 11,777 | 14,268 | 4,799 | 1984 | 12/29/92 | |||||||||||||||||||||||||||||||||
Dominion Great Oaks | 13,286 | 2,920 | 9,100 | 12,020 | 4,619 | 4,304 | 12,335 | 16,639 | 5,803 | 1974 | 07/01/94 | |||||||||||||||||||||||||||||||||
Dominion Constant Friendship | — | 903 | 4,669 | 5,572 | 1,257 | 1,075 | 5,754 | 6,829 | 2,142 | 1990 | 05/04/95 | |||||||||||||||||||||||||||||||||
Lakeside Mill | 4,550 | 2,666 | 10,109 | 12,775 | 1,034 | 2,704 | 11,105 | 13,809 | 4,008 | 1989 | 12/10/99 | |||||||||||||||||||||||||||||||||
Tamar Meadow | — | 4,145 | 17,149 | 21,294 | 1,358 | 4,180 | 18,472 | 22,652 | 2,301 | 1990 | 11/22/02 | |||||||||||||||||||||||||||||||||
Calvert’s Walk | — | 4,408 | 24,576 | 28,984 | 487 | 4,425 | 25,046 | 29,471 | 1,135 | 1988 | 03/30/04 | |||||||||||||||||||||||||||||||||
Arborview | — | 4,653 | 23,834 | 28,487 | 502 | 4,670 | 24,319 | 28,989 | 1,117 | 1992 | 03/30/04 | |||||||||||||||||||||||||||||||||
Liriope | — | 1,620 | 6,753 | 8,373 | 86 | 1,622 | 6,837 | 8,459 | 319 | 1997 | 03/30/04 | |||||||||||||||||||||||||||||||||
Baltimore, MD | 17,836 | 27,319 | 118,666 | 145,985 | 16,411 | 29,374 | 133,022 | 162,396 | 28,924 | |||||||||||||||||||||||||||||||||||
Sycamore Ridge | 4,243 | 4,068 | 15,433 | 19,501 | 2,610 | 4,291 | 17,820 | 22,111 | 4,080 | 1997 | 07/02/98 | |||||||||||||||||||||||||||||||||
Heritage Green | — | 2,990 | 11,392 | 14,382 | 9,744 | 3,135 | 20,991 | 24,126 | 5,266 | 1998 | 07/02/98 | |||||||||||||||||||||||||||||||||
Alexander Court | 13,771 | 1,573 | — | 1,573 | 21,665 | 6,239 | 16,999 | 23,238 | 6,191 | 1999 | 07/02/98 | |||||||||||||||||||||||||||||||||
Governour’s Square | 27,850 | 7,513 | 28,695 | 36,208 | 4,860 | 8,025 | 33,043 | 41,068 | 7,932 | 1967 | 12/07/98 |
50
SCHEDULE III — REAL ESTATE OWNED
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)
Cost of | Gross Amount at | |||||||||||||||||||||||||||||||||||||||||||
Initial Costs | Improvements | Which Carried at | ||||||||||||||||||||||||||||||||||||||||||
Total | Capitalized | Close of Period | ||||||||||||||||||||||||||||||||||||||||||
Land and | Buildings | Initial | Subsequent | Land and | Buildings | Total | ||||||||||||||||||||||||||||||||||||||
Land | and | Acquisition | to Acquisition | Land | and | Carrying | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||
Encumbrances | Improvements | Improvements | Costs | (Net of Disposals) | Improvements | Improvements | Value (A) | Depreciation (B) | Construction | Acquired | ||||||||||||||||||||||||||||||||||
Hickory Creek | — | 3,421 | 13,539 | 16,960 | 2,469 | 3,639 | 15,790 | 19,429 | 3,647 | 1988 | 12/07/98 | |||||||||||||||||||||||||||||||||
Britton Woods | — | 3,477 | 19,214 | 22,691 | 2,831 | 4,104 | 21,418 | 25,522 | 6,374 | 1991 | 04/20/01 | |||||||||||||||||||||||||||||||||
Columbus, OH | 45,864 | 23,042 | 88,273 | 111,315 | 44,179 | 29,433 | 126,061 | 155,494 | 33,490 | |||||||||||||||||||||||||||||||||||
Legacy Hill | — | 1,148 | 5,868 | 7,016 | 3,663 | 1,477 | 9,202 | 10,679 | 4,072 | 1977 | 11/06/95 | |||||||||||||||||||||||||||||||||
Hickory Run | — | 1,469 | 11,584 | 13,053 | 2,916 | 1,867 | 14,102 | 15,969 | 4,927 | 1989 | 12/29/95 | |||||||||||||||||||||||||||||||||
Carrington Hills | 23,427 | 2,117 | — | 2,117 | 25,280 | 3,863 | 23,534 | 27,397 | 6,909 | 1999 | 12/06/95 | |||||||||||||||||||||||||||||||||
Brookridge | — | 707 | 5,461 | 6,168 | 1,835 | 943 | 7,060 | 8,003 | 2,661 | 1986 | 03/28/96 | |||||||||||||||||||||||||||||||||
Club at Hickory Hollow | — | 2,140 | 15,231 | 17,371 | 2,746 | 2,782 | 17,335 | 20,117 | 5,650 | 1987 | 02/21/97 | |||||||||||||||||||||||||||||||||
Breckenridge | — | 766 | 7,714 | 8,480 | 1,111 | 979 | 8,612 | 9,591 | 2,679 | 1986 | 03/27/97 | |||||||||||||||||||||||||||||||||
Williamsburg | — | 1,376 | 10,931 | 12,307 | 1,881 | 1,645 | 12,543 | 14,188 | 3,636 | 1986 | 05/20/98 | |||||||||||||||||||||||||||||||||
Colonnade | 15,872 | 1,460 | 16,015 | 17,475 | 865 | 1,640 | 16,700 | 18,340 | 3,865 | 1998 | 01/07/99 | |||||||||||||||||||||||||||||||||
The Preserve at Brentwood | — | 3,182 | 24,675 | 27,857 | 171 | 3,182 | 24,846 | 28,028 | 917 | 1998 | 06/01/04 | |||||||||||||||||||||||||||||||||
Nashville, TN | 39,299 | 14,365 | 97,479 | 111,844 | 40,468 | 18,378 | 133,934 | 152,312 | 35,316 | |||||||||||||||||||||||||||||||||||
Dominion Olde West | — | 1,965 | 12,204 | 14,169 | 4,017 | 2,410 | 15,776 | 18,186 | 8,390 | 1978/82/ | 12/31/84 | |||||||||||||||||||||||||||||||||
84/85/87 | & 8/27/91 | |||||||||||||||||||||||||||||||||||||||||||
Dominion Creekwood | — | — | — | — | 2,044 | 55 | 1,989 | 2,044 | 598 | 1984 | 08/27/91 | |||||||||||||||||||||||||||||||||
Dominion Laurel Springs | — | 464 | 3,120 | 3,584 | 2,096 | 665 | 5,015 | 5,680 | 2,527 | 1972 | 09/06/91 | |||||||||||||||||||||||||||||||||
Dominion English Hills | 15,409 | 1,979 | 11,524 | 13,503 | 6,911 | 2,871 | 17,543 | 20,414 | 9,351 | 1969/76 | 12/06/91 | |||||||||||||||||||||||||||||||||
Dominion Gayton Crossing | 10,400 | 826 | 5,148 | 5,974 | 6,740 | 1,366 | 11,348 | 12,714 | 7,098 | 1973 | 09/28/95 | |||||||||||||||||||||||||||||||||
Dominion West End | 16,897 | 2,059 | 15,049 | 17,108 | 4,303 | 2,824 | 18,587 | 21,411 | 6,717 | 1989 | 12/28/95 | |||||||||||||||||||||||||||||||||
Courthouse Green | 7,866 | 732 | 4,702 | 5,434 | 2,850 | 1,157 | 7,127 | 8,284 | 4,618 | 1974/78 | 12/31/84 | |||||||||||||||||||||||||||||||||
Waterside at Ironbridge | 11,635 | 1,844 | 13,239 | 15,083 | 1,688 | 2,044 | 14,727 | 16,771 | 3,845 | 1987 | 09/30/97 | |||||||||||||||||||||||||||||||||
Carriage Homes at Wyndham | — | 474 | 30,807 | 31,281 | 711 | 3,654 | 28,338 | 31,992 | 1,890 | 1998 | 11/25/03 | |||||||||||||||||||||||||||||||||
Richmond, VA | 62,207 | 10,343 | 95,793 | 106,136 | 31,360 | 17,046 | 120,450 | 137,496 | 45,034 | |||||||||||||||||||||||||||||||||||
Boronda Manor | — | 1,946 | 8,982 | 10,928 | 6,425 | 3,000 | 14,353 | 17,353 | 2,272 | 1979 | 12/07/98 | |||||||||||||||||||||||||||||||||
Garden Court | — | 888 | 4,188 | 5,076 | 2,947 | 1,368 | 6,655 | 8,023 | 1,095 | 1973 | 12/07/98 | |||||||||||||||||||||||||||||||||
Cambridge Court | — | 3,039 | 12,883 | 15,922 | 9,895 | 4,706 | 21,111 | 25,817 | 3,481 | 1974 | 12/07/98 | |||||||||||||||||||||||||||||||||
Laurel Tree | — | 1,304 | 5,115 | 6,419 | 4,249 | 1,992 | 8,676 | 10,668 | 1,401 | 1977 | 12/07/98 | |||||||||||||||||||||||||||||||||
The Pointe at Harden Ranch | — | 6,389 | 23,854 | 30,243 | 17,290 | 9,368 | 38,165 | 47,533 | 5,925 | 1986 | 12/07/98 | |||||||||||||||||||||||||||||||||
The Pointe at Northridge | — | 2,044 | 8,029 | 10,073 | 6,471 | 3,108 | 13,436 | 16,544 | 2,112 | 1979 | 12/07/98 | |||||||||||||||||||||||||||||||||
The Pointe at Westlake | — | 1,329 | 5,334 | 6,663 | 4,064 | 2,016 | 8,711 | 10,727 | 1,384 | 1975 | 12/07/98 | |||||||||||||||||||||||||||||||||
Monterey Peninsula, CA | — | 16,939 | 68,385 | 85,324 | 51,341 | 25,558 | 111,107 | 136,665 | 17,670 | |||||||||||||||||||||||||||||||||||
Vista Point | — | 1,588 | 5,613 | 7,201 | 1,635 | 1,769 | 7,067 | 8,836 | 2,497 | 1986 | 12/31/96 | |||||||||||||||||||||||||||||||||
Sierra Palms | — | 4,639 | 17,361 | 22,000 | 867 | 4,764 | 18,103 | 22,867 | 5,140 | 1996 | 12/31/96 | |||||||||||||||||||||||||||||||||
Finisterra | — | 1,274 | 26,392 | 27,666 | 891 | 1,378 | 27,179 | 28,557 | 6,489 | 1997 | 03/27/98 | |||||||||||||||||||||||||||||||||
La Privada | 16,019 | 7,303 | 18,508 | 25,811 | 2,619 | 7,935 | 20,495 | 28,430 | 5,631 | 1987 | 03/27/98 | |||||||||||||||||||||||||||||||||
Sierra Foothills | 13,977 | 2,728 | — | 2,728 | 18,922 | 4,843 | 16,807 | 21,650 | 7,383 | 1998 | 02/18/98 | |||||||||||||||||||||||||||||||||
Villagio at McCormick Ranch | 1,674 | 3,333 | 5,975 | 9,308 | 1,045 | 3,724 | 6,629 | 10,353 | 2,704 | 1980 | 01/18/01 | |||||||||||||||||||||||||||||||||
Sierra Canyon | — | 1,810 | 12,963 | 14,773 | 390 | 1,827 | 13,336 | 15,163 | 2,674 | 2001 | 12/28/01 | |||||||||||||||||||||||||||||||||
Phoenix, AZ | 31,670 | 22,675 | 86,812 | 109,487 | 26,369 | 26,240 | 109,616 | 135,856 | 32,518 | |||||||||||||||||||||||||||||||||||
Beechwood | — | 1,409 | 6,087 | 7,496 | 1,769 | 1,682 | 7,583 | 9,265 | 3,231 | 1985 | 12/22/93 | |||||||||||||||||||||||||||||||||
Steeplechase | — | 3,208 | 11,514 | 14,722 | 13,153 | 4,036 | 23,839 | 27,875 | 7,136 | 1990/97 | 03/07/96 | |||||||||||||||||||||||||||||||||
Northwinds | — | 1,558 | 11,736 | 13,294 | 1,688 | 1,846 | 13,136 | 14,982 | 4,282 | 1989/97 | 08/15/96 | |||||||||||||||||||||||||||||||||
Deerwood Crossings | — | 1,540 | 7,989 | 9,529 | 1,831 | 1,716 | 9,644 | 11,360 | 3,455 | 1973 | 08/15/96 | |||||||||||||||||||||||||||||||||
Dutch Village | — | 1,197 | 4,826 | 6,023 | 1,286 | 1,312 | 5,997 | 7,309 | 2,231 | 1970 | 08/15/96 | |||||||||||||||||||||||||||||||||
Lake Brandt | — | 1,547 | 13,490 | 15,037 | 1,165 | 1,835 | 14,367 | 16,202 | 4,692 | 1995 | 08/15/96 | |||||||||||||||||||||||||||||||||
Park Forest | — | 680 | 5,770 | 6,450 | 1,061 | 885 | 6,626 | 7,511 | 2,066 | 1987 | 09/26/96 | |||||||||||||||||||||||||||||||||
Deep River Pointe | — | 1,671 | 11,140 | 12,811 | 598 | 1,821 | 11,588 | 13,409 | 3,207 | 1997 | 10/01/97 | |||||||||||||||||||||||||||||||||
Greensboro, NC | — | 12,810 | 72,552 | 85,362 | 22,551 | 15,133 | 92,780 | 107,913 | 30,300 | |||||||||||||||||||||||||||||||||||
Dominion Harris Pond | — | 887 | 6,728 | 7,615 | 1,896 | 1,286 | 8,225 | 9,511 | 3,293 | 1987 | 07/01/94 | |||||||||||||||||||||||||||||||||
Dominion Mallard Creek | — | 699 | 6,488 | 7,187 | 1,153 | 719 | 7,621 | 8,340 | 2,743 | 1989 | 08/16/94 | |||||||||||||||||||||||||||||||||
Dominion at Sharon | — | 667 | 4,856 | 5,523 | 1,374 | 917 | 5,980 | 6,897 | 2,150 | 1984 | 08/15/96 | |||||||||||||||||||||||||||||||||
Providence Court | — | — | 22,048 | 22,048 | 10,176 | 7,580 | 24,644 | 32,224 | 7,962 | 1997 | 09/30/97 | |||||||||||||||||||||||||||||||||
Dominion Crown Point | �� | — | 2,122 | 22,339 | 24,461 | 2,960 | 3,952 | 23,469 | 27,421 | 9,610 | 1987/00 | 07/01/94 | ||||||||||||||||||||||||||||||||
Dominion Crossing | — | 1,666 | 4,774 | 6,440 | 163 | 1,666 | 4,937 | 6,603 | 108 | 1985 | 08/31/04 | |||||||||||||||||||||||||||||||||
Dominion Norcroft | — | 1,969 | 13,051 | 15,020 | 71 | 1,969 | 13,122 | 15,091 | 277 | 1991/97 | 08/31/04 | |||||||||||||||||||||||||||||||||
Charlotte, NC | — | 8,010 | 80,284 | 88,294 | 17,793 | 18,089 | 87,998 | 106,087 | 26,143 |
51
SCHEDULE III — REAL ESTATE OWNED
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)
Cost of | Gross Amount at | |||||||||||||||||||||||||||||||||||||||||||
Initial Costs | Improvements | Which Carried at | ||||||||||||||||||||||||||||||||||||||||||
Total | Capitalized | Close of Period | ||||||||||||||||||||||||||||||||||||||||||
Land and | Buildings | Initial | Subsequent | Land and | Buildings | Total | ||||||||||||||||||||||||||||||||||||||
Land | and | Acquisition | to Acquisition | Land | and | Carrying | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||
Encumbrances | Improvements | Improvements | Costs | (Net of Disposals) | Improvements | Improvements | Value (A) | Depreciation (B) | Construction | Acquired | ||||||||||||||||||||||||||||||||||
Autumnwood | — | 2,412 | 8,688 | 11,100 | 1,747 | 2,745 | 10,102 | 12,847 | 3,409 | 1984 | 12/31/96 | |||||||||||||||||||||||||||||||||
Cobblestone | 10,137 | 2,925 | 10,527 | 13,452 | 3,832 | 3,217 | 14,067 | 17,284 | 4,748 | 1984 | 12/31/96 | |||||||||||||||||||||||||||||||||
Summit Ridge | 5,756 | 1,726 | 6,308 | 8,034 | 1,978 | 2,244 | 7,768 | 10,012 | 2,618 | 1983 | 03/27/98 | |||||||||||||||||||||||||||||||||
Greenwood Creek | — | 1,958 | 8,551 | 10,509 | 2,013 | 2,312 | 10,210 | 12,522 | 3,115 | 1984 | 03/27/98 | |||||||||||||||||||||||||||||||||
Derby Park | 7,404 | 3,121 | 11,765 | 14,886 | 2,456 | 3,804 | 13,538 | 17,342 | 4,295 | 1984 | 03/27/98 | |||||||||||||||||||||||||||||||||
Aspen Court | 2,568 | 777 | 4,945 | 5,722 | 1,424 | 1,107 | 6,039 | 7,146 | 1,848 | 1986 | 03/27/98 | |||||||||||||||||||||||||||||||||
The Cliffs | — | 3,484 | 18,657 | 22,141 | 1,633 | 3,787 | 19,986 | 23,774 | 3,916 | 1992 | 01/29/02 | |||||||||||||||||||||||||||||||||
Arlington, TX | 25,865 | 16,403 | 69,441 | 85,844 | 15,083 | 19,216 | 81,710 | 100,927 | 23,949 | |||||||||||||||||||||||||||||||||||
Arbor Terrace | 10,462 | 1,453 | 11,995 | 13,448 | 959 | 1,543 | 12,864 | 14,407 | 3,465 | 1996 | 03/27/98 | |||||||||||||||||||||||||||||||||
Aspen Creek | 6,553 | 1,178 | 9,116 | 10,294 | 521 | 1,293 | 9,522 | 10,815 | 2,101 | 1996 | 12/07/98 | |||||||||||||||||||||||||||||||||
Crowne Pointe | 7,279 | 2,486 | 6,437 | 8,923 | 1,656 | 2,554 | 8,025 | 10,579 | 2,075 | 1987 | 12/07/98 | |||||||||||||||||||||||||||||||||
Hilltop | 5,231 | 2,174 | 7,408 | 9,582 | 959 | 2,341 | 8,200 | 10,541 | 1,893 | 1985 | 12/07/98 | |||||||||||||||||||||||||||||||||
Beaumont | 11,249 | 2,339 | 12,559 | 14,898 | 779 | 2,418 | 13,259 | 15,677 | 4,483 | 1996 | 06/14/00 | |||||||||||||||||||||||||||||||||
Stonehaven | — | 6,471 | 29,536 | 36,007 | 1,803 | 6,550 | 31,260 | 37,810 | 4,980 | 1989/90 | 05/28/02 | |||||||||||||||||||||||||||||||||
Seattle, WA | 40,774 | 16,101 | 77,051 | 93,152 | 6,677 | 16,699 | 83,130 | 99,829 | 18,997 | |||||||||||||||||||||||||||||||||||
Greensview | — | 6,450 | 24,405 | 30,855 | 2,531 | 6,062 | 27,324 | 33,386 | 6,657 | 1987/02 | 12/07/98 | |||||||||||||||||||||||||||||||||
Mountain View | — | 6,402 | 21,569 | 27,971 | 2,861 | 6,381 | 24,451 | 30,832 | 5,891 | 1973 | 12/07/98 | |||||||||||||||||||||||||||||||||
The Reflections | — | 6,305 | 27,202 | 33,507 | 1,454 | 6,493 | 28,468 | 34,961 | 4,814 | 1981/96 | 04/30/02 | |||||||||||||||||||||||||||||||||
Denver, CO | — | 19,157 | 73,176 | 92,333 | 6,846 | 18,936 | 80,243 | 99,179 | 17,362 | |||||||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||||||
Summergate | — | 1,171 | 3,929 | 5,100 | 1,072 | 1,433 | 4,739 | 6,172 | 1,712 | 1984 | 12/31/96 | |||||||||||||||||||||||||||||||||
Highlands of Preston | — | 2,151 | 8,168 | 10,319 | 2,310 | 2,507 | 10,122 | 12,629 | 3,086 | 1985 | 03/27/98 | |||||||||||||||||||||||||||||||||
Meridian | 26,607 | 6,013 | 29,094 | 35,107 | 1,309 | 6,397 | 30,019 | 36,416 | 6,223 | 2000/02 | 1/27/98 & 12/28/01 | |||||||||||||||||||||||||||||||||
Lincoln Towne Square | 28,000 | 7,541 | 31,318 | 38,859 | 302 | 7,541 | 31,620 | 39,161 | 1,610 | 1999 | 03/12/04 | |||||||||||||||||||||||||||||||||
Dallas, TX | 54,607 | 16,876 | 72,509 | 89,385 | 4,993 | 17,878 | 76,500 | 94,378 | 12,631 | |||||||||||||||||||||||||||||||||||
Cape Harbor | — | 1,892 | 18,113 | 20,005 | 1,950 | 2,294 | 19,661 | 21,955 | 6,212 | 1996 | 08/15/96 | |||||||||||||||||||||||||||||||||
Mill Creek | — | 1,404 | 4,489 | 5,893 | 14,352 | 1,963 | 18,282 | 20,245 | 6,355 | 1986/98 | 09/30/91 | |||||||||||||||||||||||||||||||||
The Creek | — | 418 | 2,506 | 2,924 | 2,396 | 508 | 4,812 | 5,320 | 2,689 | 1973 | 06/30/92 | |||||||||||||||||||||||||||||||||
Forest Hills | — | 1,028 | 5,421 | 6,449 | 2,964 | 1,207 | 8,206 | 9,413 | 4,151 | 1964/69 | 06/30/92 | |||||||||||||||||||||||||||||||||
Clear Run | — | 875 | 8,741 | 9,616 | 6,243 | 1,306 | 14,553 | 15,859 | 5,582 | 1987/89 | 07/22/94 | |||||||||||||||||||||||||||||||||
Crosswinds | — | 1,096 | 18,230 | 19,326 | 1,784 | 1,243 | 19,867 | 21,110 | 5,862 | 1990 | 02/28/97 | |||||||||||||||||||||||||||||||||
Wilmington, NC | — | 6,713 | 57,500 | 64,213 | 29,689 | 8,521 | 85,381 | 93,902 | 30,851 | |||||||||||||||||||||||||||||||||||
Lancaster Commons | 7,584 | 2,485 | 7,451 | 9,936 | 624 | 2,553 | 8,007 | 10,560 | 2,048 | 1992 | 12/07/98 | |||||||||||||||||||||||||||||||||
Tualatin Heights | 8,142 | 3,273 | 9,134 | 12,407 | 915 | 3,378 | 9,944 | 13,322 | 2,568 | 1989 | 12/07/98 | |||||||||||||||||||||||||||||||||
University Park | — | 3,007 | 8,191 | 11,198 | 672 | 3,061 | 8,809 | 11,870 | 2,009 | 1987 | 03/27/98 | |||||||||||||||||||||||||||||||||
Evergreen Park | — | 3,878 | 9,973 | 13,851 | 1,282 | 3,979 | 11,154 | 15,133 | 2,890 | 1988 | 03/27/98 | |||||||||||||||||||||||||||||||||
Andover Park | — | 2,917 | 16,994 | 19,911 | 120 | 2,917 | 17,114 | 20,031 | 267 | 1989 | 09/30/04 | |||||||||||||||||||||||||||||||||
Hunt Club | — | 6,014 | 14,870 | 20,884 | 143 | 6,014 | 15,013 | 21,027 | 237 | 1985 | 09/30/04 | |||||||||||||||||||||||||||||||||
Portland, OR | 15,726 | 21,574 | 66,613 | 88,187 | 3,756 | 21,902 | 70,041 | 91,943 | 10,019 | |||||||||||||||||||||||||||||||||||
Pecan Grove | — | 1,407 | 5,293 | 6,700 | 740 | 1,482 | 5,958 | 7,440 | 1,758 | 1984 | 12/31/96 | |||||||||||||||||||||||||||||||||
Anderson Mill | 5,391 | 3,134 | 11,170 | 14,304 | 4,085 | 3,528 | 14,861 | 18,389 | 5,942 | 1984 | 03/27/97 | |||||||||||||||||||||||||||||||||
Red Stone Ranch | — | 1,897 | 17,526 | 19,423 | 433 | 5,390 | 14,466 | 19,856 | 4,538 | 2000 | 06/14/00 | |||||||||||||||||||||||||||||||||
Barton Creek Landing | — | 3,151 | 14,269 | 17,420 | 965 | 3,164 | 15,221 | 18,385 | 2,652 | 1986 | 03/28/02 | |||||||||||||||||||||||||||||||||
Lakeline Villas | — | 4,633 | 13,298 | 17,931 | 79 | 4,633 | 13,377 | 18,010 | 420 | 2002 | 07/15/04 | |||||||||||||||||||||||||||||||||
Austin, TX | 5,391 | 14,222 | 61,556 | 75,778 | 6,302 | 18,197 | 63,883 | 82,080 | 15,310 | |||||||||||||||||||||||||||||||||||
Stanford Village | — | 885 | 2,808 | 3,693 | 1,594 | 1,200 | 4,087 | 5,287 | 2,650 | 1985 | 09/26/89 | |||||||||||||||||||||||||||||||||
Griffin Crossing | — | 1,510 | 7,544 | 9,054 | 2,218 | 1,878 | 9,394 | 11,272 | 4,065 | 1987/89 | 06/08/94 | |||||||||||||||||||||||||||||||||
Gwinnett Square | 6,385 | 1,924 | 7,376 | 9,300 | 2,493 | 2,219 | 9,574 | 11,793 | 3,726 | 1985 | 03/29/95 | |||||||||||||||||||||||||||||||||
Dunwoody Pointe | 5,308 | 2,763 | 6,903 | 9,666 | 5,652 | 3,357 | 11,961 | 15,318 | 5,720 | 1980 | 10/24/95 | |||||||||||||||||||||||||||||||||
Riverwood | 5,193 | 2,986 | 11,088 | 14,074 | 4,826 | 3,507 | 15,393 | 18,900 | 6,517 | 1980 | 06/26/96 | |||||||||||||||||||||||||||||||||
Waterford Place | — | 1,579 | 10,303 | 11,882 | 1,152 | 1,703 | 11,331 | 13,034 | 2,757 | 1985 | 04/15/98 | |||||||||||||||||||||||||||||||||
Atlanta, GA | 16,886 | 11,647 | 46,022 | 57,669 | 17,935 | 13,864 | 61,740 | 75,604 | 25,435 | |||||||||||||||||||||||||||||||||||
Gable Hill | — | 825 | 5,307 | 6,132 | 1,901 | 1,197 | 6,836 | 8,033 | 3,707 | 1985 | 12/04/89 | |||||||||||||||||||||||||||||||||
St. Andrews Commons | — | 1,429 | 9,371 | 10,800 | 2,257 | 1,925 | 11,132 | 13,057 | 5,214 | 1986 | 05/20/93 |
52
SCHEDULE III — REAL ESTATE OWNED
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)
Cost of | Gross Amount at | |||||||||||||||||||||||||||||||||||||||||||
Initial Costs | Improvements | Which Carried at | ||||||||||||||||||||||||||||||||||||||||||
Total | Capitalized | Close of Period | ||||||||||||||||||||||||||||||||||||||||||
Land and | Buildings | Initial | Subsequent | Land and | Buildings | Total | ||||||||||||||||||||||||||||||||||||||
Land | and | Acquisition | to Acquisition | Land | and | Carrying | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||
Encumbrances | Improvements | Improvements | Costs | (Net of Disposals) | Improvements | Improvements | Value (A) | Depreciation (B) | Construction | Acquired | ||||||||||||||||||||||||||||||||||
Forestbrook | — | 396 | 2,902 | 3,298 | 2,094 | 577 | 4,815 | 5,392 | 2,956 | 1974 | 07/01/93 | |||||||||||||||||||||||||||||||||
Waterford | — | 958 | 6,948 | 7,906 | 2,091 | 1,325 | 8,672 | 9,997 | 3,671 | 1985 | 07/01/94 | |||||||||||||||||||||||||||||||||
Hampton Greene | — | 1,363 | 10,118 | 11,481 | 2,050 | 2,014 | 11,517 | 13,531 | 4,662 | 1990 | 08/19/94 | |||||||||||||||||||||||||||||||||
Rivergate | — | 1,122 | 12,056 | 13,178 | 1,797 | 1,492 | 13,483 | 14,975 | 4,342 | 1989 | 08/15/96 | |||||||||||||||||||||||||||||||||
Columbia, SC | — | 6,093 | 46,702 | 52,795 | 12,190 | 8,530 | 56,455 | 64,985 | 24,552 | |||||||||||||||||||||||||||||||||||
Greentree | 12,455 | 1,634 | 11,227 | 12,861 | 4,994 | 2,464 | 15,391 | 17,855 | 6,816 | 1986 | 07/22/94 | |||||||||||||||||||||||||||||||||
Westland | — | 1,835 | 14,865 | 16,700 | 4,667 | 2,717 | 18,650 | 21,367 | 7,531 | 1990 | 05/09/96 | |||||||||||||||||||||||||||||||||
Antlers | — | 4,034 | 11,193 | 15,227 | 6,802 | 4,925 | 17,104 | 22,029 | 7,282 | 1985 | 05/28/96 | |||||||||||||||||||||||||||||||||
Jacksonville, FL | 12,455 | 7,503 | 37,285 | 44,788 | 16,463 | 10,106 | 51,145 | 61,251 | 21,629 | |||||||||||||||||||||||||||||||||||
Forest Lake at Oyster Point | — | 780 | 8,862 | 9,642 | 2,601 | 1,209 | 11,034 | 12,243 | 4,455 | 1986 | 08/15/95 | |||||||||||||||||||||||||||||||||
Woodscape | — | 799 | 7,209 | 8,008 | 3,420 | 1,870 | 9,558 | 11,428 | 5,826 | 1974/76 | 12/29/87 | |||||||||||||||||||||||||||||||||
Eastwind | — | 155 | 5,317 | 5,472 | 2,648 | 430 | 7,690 | 8,120 | 3,721 | 1970 | 04/04/88 | |||||||||||||||||||||||||||||||||
Dominion Waterside at Lynnhaven | — | 1,824 | 4,107 | 5,931 | 2,666 | 2,058 | 6,539 | 8,597 | 2,369 | 1966 | 08/15/96 | |||||||||||||||||||||||||||||||||
Heather Lake | — | 617 | 3,400 | 4,017 | 4,604 | 1,048 | 7,573 | 8,621 | 5,572 | 1972/74 | 03/01/80 | |||||||||||||||||||||||||||||||||
Dominion Yorkshire Downs | 9,118 | 1,089 | 8,582 | 9,671 | 1,504 | 1,307 | 9,868 | 11,175 | 2,624 | 1987 | 12/23/97 | |||||||||||||||||||||||||||||||||
Norfolk, VA | 9,118 | 5,264 | 37,477 | 42,741 | 17,443 | 7,922 | 52,262 | 60,184 | 24,567 | |||||||||||||||||||||||||||||||||||
Oak Park | 16,787 | 3,966 | 22,228 | 26,194 | 1,149 | 5,578 | 21,765 | 27,343 | 7,776 | 1982/98 | 12/31/96 | |||||||||||||||||||||||||||||||||
Catalina | — | 1,543 | 5,632 | 7,175 | 1,334 | 1,693 | 6,816 | 8,509 | 2,184 | 1982 | 12/31/96 | |||||||||||||||||||||||||||||||||
Wimbledon Court | — | 1,809 | 10,930 | 12,739 | 2,814 | 2,877 | 12,676 | 15,553 | 3,912 | 1983 | 12/31/96 | |||||||||||||||||||||||||||||||||
Oak Forest | 22,446 | 5,631 | 23,294 | 28,925 | 11,335 | 6,459 | 33,801 | 40,260 | 11,552 | 1996/98 | 12/31/96 | |||||||||||||||||||||||||||||||||
Oaks of Lewisville | 11,444 | 3,727 | 13,563 | 17,290 | 4,462 | 4,566 | 17,186 | 21,752 | 6,388 | 1983 | 03/27/97 | |||||||||||||||||||||||||||||||||
Parc Plaza | — | 1,684 | 5,279 | 6,963 | 1,909 | 2,184 | 6,688 | 8,872 | 2,571 | 1986 | 10/30/97 | |||||||||||||||||||||||||||||||||
Mandolin | — | 4,223 | 27,910 | 32,133 | 4,322 | 6,336 | 30,119 | 36,455 | 5,304 | 2001 | 12/28/01 | |||||||||||||||||||||||||||||||||
Inn at Los Patios | — | 3,005 | 11,545 | 14,550 | (1,491 | ) | 3,005 | 10,054 | 13,059 | 2,101 | 1990 | 08/15/98 | ||||||||||||||||||||||||||||||||
Turtle Creek | — | 1,913 | 7,087 | 9,000 | 1,487 | 2,220 | 8,267 | 10,487 | 2,722 | 1985 | 12/31/96 | |||||||||||||||||||||||||||||||||
Shadow Lake | — | 2,524 | 8,976 | 11,500 | 2,324 | 2,851 | 10,973 | 13,824 | 3,669 | 1984 | 12/31/96 | |||||||||||||||||||||||||||||||||
Other Southwestern | 50,677 | 30,025 | 136,444 | 166,469 | 29,645 | 37,769 | 158,345 | 196,114 | 48,179 | |||||||||||||||||||||||||||||||||||
Mallards of Wedgewood | — | 959 | 6,865 | 7,824 | 2,299 | 1,263 | 8,860 | 10,123 | 3,581 | 1985 | 07/27/95 | |||||||||||||||||||||||||||||||||
Riverbridge | 44,873 | 15,968 | 56,400 | 72,368 | 72 | 15,968 | 56,472 | 72,440 | 285 | 1999/01 | 12/01/04 | |||||||||||||||||||||||||||||||||
The Groves | — | 790 | 4,767 | 5,557 | 2,104 | 1,472 | 6,189 | 7,661 | 2,828 | 1989 | 12/13/95 | |||||||||||||||||||||||||||||||||
Lakeside | — | 2,404 | 6,420 | 8,824 | 1,634 | 2,588 | 7,870 | 10,458 | 2,629 | 1985 | 07/01/97 | |||||||||||||||||||||||||||||||||
Mallards of Brandywine | — | 766 | 5,408 | 6,174 | 1,696 | 992 | 6,878 | 7,870 | 2,348 | 1985 | 07/01/97 | |||||||||||||||||||||||||||||||||
LakePointe | — | 1,435 | 4,940 | 6,375 | 3,079 | 1,799 | 7,655 | 9,454 | 3,852 | 1984 | 09/24/93 | |||||||||||||||||||||||||||||||||
Other Florida | 44,873 | 22,322 | 84,800 | 107,122 | 10,884 | 24,082 | 93,924 | 118,006 | 15,523 | |||||||||||||||||||||||||||||||||||
Colony Village | — | 347 | 3,037 | 3,384 | 2,357 | 580 | 5,161 | 5,741 | 3,703 | 1972/74 | 12/31/84 | |||||||||||||||||||||||||||||||||
Brynn Marr | — | 433 | 3,821 | 4,254 | 2,900 | 732 | 6,422 | 7,154 | 4,562 | 1973/77 | 12/31/84 | |||||||||||||||||||||||||||||||||
Liberty Crossing | — | 840 | 3,873 | 4,713 | 3,640 | 1,493 | 6,860 | 8,353 | 4,681 | 1972/74 | 11/30/90 | |||||||||||||||||||||||||||||||||
Bramblewood | — | 402 | 3,151 | 3,553 | 1,965 | 589 | 4,929 | 5,518 | 3,404 | 1980/82 | 12/31/84 | |||||||||||||||||||||||||||||||||
Cumberland Trace | — | 632 | 7,896 | 8,528 | 1,830 | 742 | 9,616 | 10,358 | 3,021 | 1973 | 08/15/96 | |||||||||||||||||||||||||||||||||
Village at Cliffdale | 12,434 | 941 | 15,498 | 16,439 | 1,781 | 1,200 | 17,020 | 18,220 | 5,264 | 1992 | 08/15/96 | |||||||||||||||||||||||||||||||||
Morganton Place | — | 819 | 13,217 | 14,036 | 927 | 895 | 14,068 | 14,963 | 4,071 | 1994 | 08/15/96 | |||||||||||||||||||||||||||||||||
Woodberry | — | 389 | 6,381 | 6,770 | 1,592 | 1,009 | 7,353 | 8,362 | 2,713 | 1987 | 08/15/96 | |||||||||||||||||||||||||||||||||
Other North Carolina | 12,434 | 4,803 | 56,874 | 61,677 | 16,992 | 7,240 | 71,429 | 78,669 | 31,419 | |||||||||||||||||||||||||||||||||||
Brittingham Square | — | 650 | 4,962 | 5,612 | 1,109 | 834 | 5,887 | 6,721 | 2,142 | 1991 | 05/04/95 | |||||||||||||||||||||||||||||||||
Greens at Schumaker Pond | — | 710 | 6,118 | 6,828 | 1,353 | 889 | 7,292 | 8,181 | 2,669 | 1988 | 05/04/95 | |||||||||||||||||||||||||||||||||
Greens at Cross Court | — | 1,182 | 4,544 | 5,726 | 1,506 | 1,404 | 5,828 | 7,232 | 2,206 | 1987 | 05/04/95 | |||||||||||||||||||||||||||||||||
Greens at Hilton Run | 16,770 | 2,755 | 10,483 | 13,238 | 2,260 | 3,127 | 12,371 | 15,498 | 4,543 | 1988 | 05/04/95 | |||||||||||||||||||||||||||||||||
Dover Country | — | 2,008 | 6,365 | 8,373 | 3,059 | 2,377 | 9,055 | 11,432 | 4,161 | 1970 | 07/01/94 | |||||||||||||||||||||||||||||||||
Greens at Cedar Chase | — | 1,528 | 4,831 | 6,359 | 954 | 1,722 | 5,591 | 7,313 | 2,169 | 1988 | 05/04/95 | |||||||||||||||||||||||||||||||||
Other Mid-Atlantic | 16,770 | 8,833 | 37,303 | 46,136 | 10,241 | 10,353 | 46,024 | 56,377 | 17,890 | |||||||||||||||||||||||||||||||||||
Greens at Falls Run | — | 2,731 | 5,300 | 8,031 | 1,681 | 2,925 | 6,787 | 9,712 | 2,386 | 1989 | 05/04/95 | |||||||||||||||||||||||||||||||||
Manor at England Run | 14,671 | 3,195 | 13,505 | 16,700 | 13,623 | 4,928 | 25,395 | 30,323 | 8,357 | 1990 | 05/04/95 | |||||||||||||||||||||||||||||||||
Greens at Hollymead | — | 965 | 5,250 | 6,215 | 1,021 | 1,095 | 6,141 | 7,236 | 2,237 | 1990 | 05/04/95 | |||||||||||||||||||||||||||||||||
Other Virginia | 14,671 | 6,891 | 24,055 | 30,946 | 16,325 | 8,948 | 38,323 | 47,271 | 12,980 |
53
SCHEDULE III — REAL ESTATE OWNED
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)
Gross Amount at | ||||||||||||||||||||||||||||||||||||||||||||
Cost of | Which Carried at | |||||||||||||||||||||||||||||||||||||||||||
Initial Costs | Improvements | Close of Period | ||||||||||||||||||||||||||||||||||||||||||
Total | Capitalized | |||||||||||||||||||||||||||||||||||||||||||
Land and | Buildings | Initial | Subsequent | Land and | Buildings | Total | ||||||||||||||||||||||||||||||||||||||
Land | and | Acquisition | to Acquisition | Land | and | Carrying | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||
Encumbrances | Improvements | Improvements | Costs | (Net of Disposals) | Improvements | Improvements | Value (A) | Depreciation (B) | Construction | Acquired | ||||||||||||||||||||||||||||||||||
Patriot Place | — | 213 | 1,601 | 1,814 | 5,956 | 1,516 | 6,254 | 7,770 | 4,517 | 1974 | 10/23/85 | |||||||||||||||||||||||||||||||||
The Trails at Mount Moriah | 16,368 | 5,931 | 22,095 | 28,026 | 5,193 | 6,523 | 26,696 | 33,219 | 7,193 | 1990 | 01/09/98 | |||||||||||||||||||||||||||||||||
Other Southeastern | 16,368 | 6,144 | 23,696 | 29,840 | 11,149 | 8,039 | 32,950 | 40,989 | 11,710 | |||||||||||||||||||||||||||||||||||
Washington Park | — | 2,011 | 7,565 | 9,576 | 1,338 | 2,152 | 8,762 | 10,914 | 2,188 | 1998 | 12/07/98 | |||||||||||||||||||||||||||||||||
Fountainhead | — | 391 | 1,420 | 1,811 | 330 | 406 | 1,735 | 2,141 | 496 | 1966 | 12/07/98 | |||||||||||||||||||||||||||||||||
Jamestown of Toledo | 5,767 | 1,800 | 7,054 | 8,854 | 1,611 | 1,954 | 8,511 | 10,465 | 2,141 | 1965 | 12/07/98 | |||||||||||||||||||||||||||||||||
Other Midwestern | 5,767 | 4,202 | 16,039 | 20,241 | 3,279 | 4,512 | 19,008 | 23,520 | 4,825 | |||||||||||||||||||||||||||||||||||
Total Apartments | $ | 1,159,479 | $ | 986,135 | $ | 3,136,527 | $ | 4,122,662 | $ | 715,420 | $ | 1,159,373 | $ | 3,678,708 | $ | 4,838,082 | $ | 930,807 | ||||||||||||||||||||||||||
REAL ESTATE HELD FOR DISPOSITION | ||||||||||||||||||||||||||||||||||||||||||||
Apartments | ||||||||||||||||||||||||||||||||||||||||||||
Park Trails | $ | — | $ | 1,145 | $ | 4,105 | $ | 5,250 | $ | 1,627 | $ | 1,283 | $ | 5,594 | $ | 6,877 | $ | 1,889 | 1983 | 12/31/96 | ||||||||||||||||||||||||
Briar Park | — | 329 | 2,794 | 3,123 | 329 | 370 | 3,082 | 3,452 | 763 | 1987 | 03/27/98 | |||||||||||||||||||||||||||||||||
Clear Lake Falls | — | 1,090 | 4,534 | 5,624 | 485 | 1,180 | 4,929 | 6,109 | 1,238 | 1980 | 03/27/98 | |||||||||||||||||||||||||||||||||
Nantucket Square | — | 1,068 | 4,833 | 5,901 | (281 | ) | 1,090 | 4,530 | 5,620 | 1,083 | 1983 | 03/27/98 | ||||||||||||||||||||||||||||||||
The Gallery | — | 769 | 3,359 | 4,128 | 321 | 802 | 3,647 | 4,449 | 825 | 1968 | 03/27/98 | |||||||||||||||||||||||||||||||||
Breakers | — | 1,527 | 5,298 | 6,825 | 2,959 | 1,932 | 7,852 | 9,784 | 2,787 | 1985 | 09/26/97 | |||||||||||||||||||||||||||||||||
Riverway | — | 523 | 2,828 | 3,351 | 403 | 577 | 3,177 | 3,754 | 930 | 1985 | 03/27/98 | |||||||||||||||||||||||||||||||||
Northpark Village | — | 1,519 | 13,537 | 15,056 | 2,450 | 1,893 | 15,613 | 17,506 | 4,569 | 1983 | 03/27/98 | |||||||||||||||||||||||||||||||||
Stonegate | — | 735 | 7,940 | 8,675 | 1,298 | 924 | 9,049 | 9,973 | 2,558 | 1978 | 03/27/98 | |||||||||||||||||||||||||||||||||
Woodland Park | — | 3,017 | 6,706 | 9,723 | 1,283 | 3,273 | 7,733 | 11,006 | 2,689 | 1979 | 06/09/98 | |||||||||||||||||||||||||||||||||
The Grand Resort | — | 8,884 | 35,706 | 44,590 | 18,302 | 11,996 | 50,896 | 62,892 | 9,827 | 1971 | 12/07/98 | |||||||||||||||||||||||||||||||||
Dominion Peppertree | — | 1,546 | 7,699 | 9,245 | 2,220 | 1,815 | 9,650 | 11,465 | 4,408 | 1987 | 12/14/93 | |||||||||||||||||||||||||||||||||
Stoney Pointe | 11,784 | 1,500 | 15,856 | 17,356 | 1,882 | 1,777 | 17,461 | 19,238 | 5,258 | 1991 | 02/28/97 | |||||||||||||||||||||||||||||||||
Preston Oaks | — | 1,784 | 6,416 | 8,200 | 1,340 | 1,975 | 7,565 | 9,540 | 2,376 | 1980 | 12/31/96 | |||||||||||||||||||||||||||||||||
Rock Creek | — | 4,077 | 15,823 | 19,900 | 5,521 | 4,672 | 20,749 | 25,421 | 7,431 | 1979 | 12/31/96 | |||||||||||||||||||||||||||||||||
Windridge | — | 3,414 | 14,027 | 17,441 | 4,183 | 4,095 | 17,529 | 21,624 | 6,043 | 1980 | 12/31/96 | |||||||||||||||||||||||||||||||||
Lakeridge | — | 1,631 | 5,669 | 7,300 | 1,476 | 1,858 | 6,918 | 8,776 | 2,474 | 1984 | 12/31/96 | |||||||||||||||||||||||||||||||||
Kelly Crossing | — | 2,497 | 9,156 | 11,653 | 2,134 | 2,999 | 10,788 | 13,787 | 3,509 | 1984 | 06/18/97 | |||||||||||||||||||||||||||||||||
The Summit | 6,443 | 1,932 | 9,041 | 10,973 | 2,171 | 2,346 | 10,798 | 13,144 | 3,176 | 1983 | 03/27/98 | |||||||||||||||||||||||||||||||||
Springfield | 1,480 | 3,075 | 6,823 | 9,898 | 1,459 | 3,285 | 8,072 | 11,357 | 2,496 | 1985 | 03/27/98 | |||||||||||||||||||||||||||||||||
Pavillion | — | 4,428 | 19,033 | 23,461 | 2,621 | 4,787 | 21,296 | 26,082 | 6,490 | 1979 | 12/31/96 | |||||||||||||||||||||||||||||||||
Ridgewood Townhomes | 14,946 | 4,507 | 16,263 | 20,770 | 758 | 4,510 | 17,018 | 21,528 | 2,349 | 1983 | 08/26/02 | |||||||||||||||||||||||||||||||||
UDR Harding Park, Inc. | — | 2,670 | 4,330 | 7,000 | (4,332 | ) | 2,670 | (2 | ) | 2,668 | 78 | 1984 | 12/07/98 | |||||||||||||||||||||||||||||||
Total Apartments | 34,653 | 53,667 | 221,776 | 275,443 | 50,609 | 62,109 | 263,944 | 326,052 | 75,246 | |||||||||||||||||||||||||||||||||||
Land | ||||||||||||||||||||||||||||||||||||||||||||
Fossil Creek | — | 3,932 | — | 3,932 | — | 3,684 | 248 | 3,932 | — | |||||||||||||||||||||||||||||||||||
Copper Mill Phase II | — | 837 | — | 837 | — | 719 | 118 | 837 | — | |||||||||||||||||||||||||||||||||||
Total Land | — | 4,769 | — | 4,769 | — | 4,403 | 366 | 4,769 | — | |||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||
Hanover Village | $ | — | $ | 1,624 | $ | — | $ | 1,624 | $ | — | $ | 1,104 | $ | 520 | $ | 1,624 | $ | 492 | — | 06/30/86 | ||||||||||||||||||||||||
$ | 34,653 | $ | 60,060 | $ | 221,776 | $ | 281,836 | $ | 50,609 | $ | 67,616 | $ | 264,830 | $ | 332,445 | $ | 75,738 | |||||||||||||||||||||||||||
REAL ESTATE UNDER DEVELOPMENT | ||||||||||||||||||||||||||||||||||||||||||||
Apartments | ||||||||||||||||||||||||||||||||||||||||||||
Mandalay on the Lake | $ | — | $ | 3,009 | $ | 2,067 | $ | 5,076 | $ | 4,763 | $ | 3,009 | $ | 6,830 | $ | 9,839 | $ | — | ||||||||||||||||||||||||||
Verano at Town Square | — | 13,557 | 3,645 | 17,202 | 10,445 | 13,557 | 14,090 | 27,647 | — | |||||||||||||||||||||||||||||||||||
2000 Post III | — | 1,756 | 780 | 2,536 | 219 | 1,756 | 999 | 2,755 | — | |||||||||||||||||||||||||||||||||||
Total Apartments | — | 18,322 | 6,492 | 24,814 | 15,427 | 18,322 | 21,919 | 40,241 | — | |||||||||||||||||||||||||||||||||||
Land | ||||||||||||||||||||||||||||||||||||||||||||
Parker’s Landing Phase II | — | 1,192 | — | 1,192 | — | 1,116 | 76 | 1,192 | — | |||||||||||||||||||||||||||||||||||
Ridgeview Phase I | — | 3,099 | — | 3,099 | — | 2,433 | 666 | 3,099 | — | |||||||||||||||||||||||||||||||||||
Ridgeview Phase II | — | 2,092 | — | 2,092 | — | 1,843 | 249 | 2,092 | — | |||||||||||||||||||||||||||||||||||
Mountain View Phase II | — | 220 | — | 220 | — | 220 | — | 220 | — | |||||||||||||||||||||||||||||||||||
Presidio | — | 1,343 | — | 1,343 | — | 1,300 | 43 | 1,343 | — | |||||||||||||||||||||||||||||||||||
UDR/ Pacific Los Alisos, LP | — | 16,731 | — | 16,731 | — | 16,313 | 418 | 16,731 | — | |||||||||||||||||||||||||||||||||||
Ridgeview Townhomes | — | 2 | — | 2 | 1 | — | 3 | 3 | — | |||||||||||||||||||||||||||||||||||
Total Land | — | 24,679 | — | 24,679 | 1 | 23,225 | 1,455 | 24,680 | — | |||||||||||||||||||||||||||||||||||
$ | — | $ | 43,001 | $ | 6,492 | $ | 49,493 | $ | 15,428 | $ | 41,547 | $ | 23,374 | $ | 64,921 | $ | — | |||||||||||||||||||||||||||
54
SCHEDULE III — REAL ESTATE OWNED
FOR THE YEAR ENDED DECEMBER 31, 2004
(in thousands)
Cost of | Gross Amount at | |||||||||||||||||||||||||||||||||||||||||||
Initial Costs | Improvements | Which Carried at | ||||||||||||||||||||||||||||||||||||||||||
Total | Capitalized | Close of Period | ||||||||||||||||||||||||||||||||||||||||||
Land and | Buildings | Initial | Subsequent | Land and | Buildings | Total | ||||||||||||||||||||||||||||||||||||||
Land | and | Acquisition | to Acquisition | Land | and | Carrying | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||
Encumbrances | Improvements | Improvements | Costs | (Net of Disposals) | Improvements | Improvements | Value (A) | Depreciation (B) | Construction | Acquired | ||||||||||||||||||||||||||||||||||
COMMERCIAL HELD FOR INVESTMENT | ||||||||||||||||||||||||||||||||||||||||||||
The Calvert | — | 34 | 1,597 | 1,631 | 1 | 327 | 1,305 | 1,632 | 83 | 1962 | 11/26/03 | |||||||||||||||||||||||||||||||||
Total Commercial | — | 34 | 1,597 | 1,631 | 1 | 327 | 1,305 | 1,632 | 83 | |||||||||||||||||||||||||||||||||||
Richmond Corporate | 3,792 | 245 | 6,352 | 6,597 | (381 | ) | 277 | 5,939 | 6,216 | 1,259 | 1999 | 11/30/99 | ||||||||||||||||||||||||||||||||
$ | 3,792 | $ | 279 | $ | 7,949 | $ | 8,228 | $ | (380 | ) | $ | 604 | $ | 7,244 | $ | 7,848 | $ | 1,342 | ||||||||||||||||||||||||||
TOTAL REAL ESTATE OWNED | $ | 1,197,924 | $ | 1,089,475 | $ | 3,372,744 | $ | 4,462,219 | $ | 781,077 | $ | 1,269,140 | $ | 3,974,156 | $ | 5,243,296 | $ | 1,007,887 | ||||||||||||||||||||||||||
(A) | The aggregate cost for federal income tax purposes was approximately $4.5 billion at December 31, 2004. | |
(B) | The depreciable life for buildings is 35 years. |
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Years ended December 31, | |||||||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||||||||||
Income/(loss) before discontinued operations, net of minority interests | $ | 26,509 | $ | 26,081 | ($ | 12,098 | ) | $ | 2,979 | $ | 6,416 | ||||||||||||
Add: | |||||||||||||||||||||||
Portion of rents representative of the interest factor | 651 | 651 | 691 | 794 | 866 | ||||||||||||||||||
Minority interests | 267 | (754 | ) | (1,180 | ) | (75 | ) | (712 | ) | ||||||||||||||
Loss on equity investment in joint venture | — | — | — | 254 | 111 | ||||||||||||||||||
Interest on indebtedness from continuing operations | 123,170 | 116,522 | 127,549 | 133,449 | 145,758 | ||||||||||||||||||
Earnings | $ | 150,597 | $ | 142,500 | $ | 114,962 | $ | 137,401 | $ | 152,439 | |||||||||||||
Fixed charges and preferred stock dividend: | |||||||||||||||||||||||
Interest on indebtedness from continuing operations | $ | 123,170 | $ | 116,522 | $ | 127,549 | $ | 133,449 | $ | 145,758 | |||||||||||||
Capitalized interest | 986 | 1,808 | 931 | 2,925 | 3,650 | ||||||||||||||||||
Portion of rents representative of the interest factor | 651 | 651 | 691 | 794 | 866 | ||||||||||||||||||
Fixed charges | 124,807 | 118,981 | 129,171 | 137,168 | 150,274 | ||||||||||||||||||
Add: | |||||||||||||||||||||||
Preferred stock dividend | 19,531 | 26,326 | 27,424 | 31,190 | 36,891 | ||||||||||||||||||
Accretion of preferred stock | 5,729 | 19,271 | — | — | — | ||||||||||||||||||
Preferred stock dividend and accretion of preferred stock | 25,260 | 45,597 | 27,424 | 31,190 | 36,891 | ||||||||||||||||||
Combined fixed charges and preferred stock dividend | $ | 150,067 | $ | 164,578 | $ | 156,595 | $ | 168,358 | $ | 187,165 | |||||||||||||
Ratio of earnings to fixed charges | 1.21 | x | 1.20 | x | — | 1.00 | x | 1.01 | x | ||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividend | 1.00 | x | — | — | — | — |
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