NAREIT Institutional
Investor Forum
United Dominion
Realty Trust
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United Dominion
Realty Trust
NAREIT Presentation
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o Overview of United Dominion Realty Trust
o Action Taken - First 120 Days
o Asset Quality Overview
o Financial Overview
o The Next Twelve Months
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United Dominion
Realty Trust
Overview
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o Established 1972
o National Portfolio of Apartments
o 77,000 Units in 60 Markets/21 States
o 25 Years of Increasing Dividends
o 75% Retail Shareholders
o Market Capitalization $4.0 Billion
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United Dominion
Realty Trust
Overview -
Geographical Distribution
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Fredericksburg 1
Fort Meyers 1
Fayetteville 1
Detroit 1
Washington 1
Seattle 1
Portland 1
Orange County 1
Denver 1
Jacksonville, Fl 1
Eastern Shore 1
Sacramento 1
Lansing 2
Ft. Lauderdale 2
San Jose 2
Columbia 2
Virginia Beach 2
Atlanta 2
Memphis 2
San Francisco 2
Baltimore 2
Wilmington 2
Greensboro 3
Salinas 3
Nashville 3
Columbus 3
Charlotte 3
Richmond 4
Fort Worth 4
San Antonio 4
Raleigh 4
Tampa 4
Phoenix 4
Houston 5
Orlando 6
Dallas 6
Other 12
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United Dominion
Realty Trust
Overview - Financials
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FFO 2001 $1.48
2002 $1.62
FFO Growth 2001-02 9.4%
Dividends/Yield $1.08/8.1%
Net Asset Value $15.00 - $15.50
Fixed Charge Ratio, latest quarter 1.94
As of May 31, 2001
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United Dominion
Realty Trust
First 120 Days
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o New Management Team
o One Time Charge to Earnings
o Improvements to Earnings
o Capital Transactions
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United Dominion
Realty Trust
Management Team
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Mark Wallis Sr. EVP Strategic Planning, Acquisition & Development
Chris Genry CFO Financial Reporting, Technology and Human Resources
Ella Neyland EVP Treasurer/Investor Relations
Martha Carlin SVP Operations
First 120 Days
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United Dominion
Realty Trust
One Time Charge to Earnings
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(In Millions)
Reduction in Workforce of 210 (10%) $ 4.5
Land Valuation 2.8
Relocation to Denver .4
Internet Investment .3
Other .5
Total $ 8.5
First 120 Days
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United Dominion
Realty Trust
Improvement in Earnings
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(In Millions)
2001
Work Force $ 3.5
Insurance .6
Interest Savings 1.0
First 120 Days
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United Dominion
Realty Trust
Capital Transactions
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(In Millions)
2001
Preferred A Redemption $ 1.2
$100 million, 9-1/4% Preferred A
shares redeemed, financed with 5-6%
secured debt
Florida Sale .4
Average Cap Rate of 8%,
$113 million sales price, 1,638 units
First 120 Days
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United Dominion
Realty Trust
Asset Quality Overview
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o Rental Growth/Average Age
o Reinvestments
o Development Pipeline
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United Dominion
Realty Trust
Rental Growth/Average Age
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[Line Chart]
Average Rent
1995 - $500
1996 - $540
1997 - $563
1998 - $600
1999 - $631
2000 - $667
2001 - $690
Average Age
1995 - 15
1996 - 14
1997 - 13
1998 - 14
1999 - 13
2000 - 12
2001 - 12
Asset Quality
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United Dominion
Realty Trust
Reinvesting in Assets
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(Per Unit)
[Bar Chart]
1998 1999 2000 2001
---- ---- ---- ----
Asset Preservation $ 598 $672 $443 $455
Capital Enhancements $ 659 $351 $218 $184
Maintenance $1,110 $818 $323 $285 (est.)
Asset Quality
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United Dominion
Realty Trust
Development Pipeline
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Average Return: 10.5%
[Bar Chart]
(In Millions)
1998 $50
1999 $57
2000 $67
2001 $70
2002 $75
Asset Quality
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United Dominion
Realty Trust
Financial Overview
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o Earnings Estimates
o Financial Ratios
o Net Asset Value
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United Dominion
Realty Trust
Earnings Estimates
...The Bottom Line
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SSS Growth (4-5%)
[Line Chart]
1995 1996 1997 1998 1999 2000 2001 (est) 2002 (est)
---- ---- ---- ---- ---- ---- ---------- ----------
Earnings $1.17 $1.23 $1.34 $1.34 $1.42 $1.45 $1.48 $1.64
Financial
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United Dominion
Realty Trust
Financial Ratios
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Actual Est.
3/31/01 12/31/01
------- --------
Fixed Charge Ratio 1.92 2.00
Debt/Market Cap 53% 53%
Unencumbered Assets $2.4 billion $2.4 billion
Financial
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United Dominion
Realty Trust
Net Asset Value
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$15.00 to $15.50
Assumption:
Forward 12 months NOI, less $306 capital replacements, capitalization rate of
9.25%
Can be viewed in detail on UDRT.com web site by 3rd Quarter 2001.
Financial
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United Dominion
Realty Trust
The Next Twelve Months
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o Focus on Positioning the Portfolio
o Increase Operating Efficiency
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United Dominion
Realty Trust
Positioning the Portfolio
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o Focus on Fewer Markets
o Market Concentration
- Minimum of 1,500 - 2,000 units
- Maximum of 10,000 - 12,000 units
o Market Selection Criteria
- Employment Growth Prospects
- Immigration
- Affordability Index
The Next Twelve Months
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United Dominion
Realty Trust
Revenue Management
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Early March
2001 120 Days
---- --------
Occupancy 93.9% 94.4%
Loss to Lease $1,841,422 $2,021,647
60 Days Vacant 928 437
Lease Management 17.0% 16.5%
The Next Twelve Months
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United Dominion
Realty Trust
Expense Control
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[Pie Chart]
(Budget - per unit)
Contract Administrative - $80
Management Fees - $265
Personnel - $850
Turnover - $130
Maintenance - $125
Contract Services - $280
Utilities - $400
Insurance - $220
Taxes - $915
General Administrative - $125
The Next Twelve Months
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United Dominion
Realty Trust
Closing
...during the next 365 days
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We will look back on a successful business plan that:
o Closes the multiple spread between UDR and Industry
o Generates an Executable Strategic Plan
o Improves Operations
o Improves Financial Flexibility
o Continues to improve the Quality of Assets
o Improves Communications to Investment Community
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