[UNITED DOMINION REALTY TRUST LOGO]
[GRAPHIC] 30 YEARS
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Wachovia Securities
Fifth Annual REIT/Real Estate Conference
November 28, 2001
New York
[GRAPHIC] 30 YEARS
Agenda
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o UDR: Class B Apartment Leader
o Solid Total Return Potential ... In a Slowing Economy
o New Initiatives to Strengthen Performance
o Investment Considerations
2
[GRAPHIC] 30 YEARS
Key Topics
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- --> UDR: Class B Apartment Leader
o Solid Total Return Potential ... In a Slowing Economy
o New Initiatives to Strengthen Performance
o Investment Considerations
3
[GRAPHIC] 30 YEARS
UDR: Class B Apartment Leader
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o 4th Largest Apartment REIT
o Class B Apartment Focus
o $4 Billion Market Capitalization
o Diversified Portfolio on Nationwide Scale
o New Management Team
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[GRAPHIC] 30 YEARS
National Portfolio of
78,000 Apartment Homes
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[MAP]
No. of
Units
------
Arizona 4,262
Arkansas 512
California 5,266
Colorado 1,068
D.C. 615
Delaware 372
Florida 11,006
Georgia 1,666
Indiana 766
Kentucky 356
Maryland 2,075
Michigan 2,139
Nevada 384
New Mexico 426
North Carolina 11,925
Ohio 2,970
Oregon 994
South Carolina 1,752
Tennessee 4,176
Texas 19,337
Virginia 4,509
Washington 1,391
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[GRAPHIC] 30 YEARS
Key Topics
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o UDR: Class B Apartment Leader
- --> Solid Total Return Potential ...
In a Slowing Economy
o New Initiatives to Strengthen Performance
o Investment Considerations
6
[GRAPHIC] 30 Years
FFO and Dividend Growth
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[GRAPH]
1996 1997 1998 1999 2000 2001 2002
---- ---- ---- ---- ---- ---- ----
FFO Growth $1.23 $1.34 $1.34 $1.42 $1.45 $1.48 $1.65
Dividend Growth $0.96 $1.01 $1.05 $1.06 $1.07 $1.08 $1.11
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[GRAPHIC] 30 YEARS
2002 FFO Growth Will Lead Industry
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[GRAPH]
UDR 9.8%
ASN 7.8%
AVB 6.2%
BRE 5.5%
ESS 3.2%
AIV 3.0%
EQR 1.9%
GBP 1.6%
CPT 1.6%
SMT 1.6%
PPS -3.7%
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[GRAPHIC] 30 YEARS
2002 Projections Remain Unchanged
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Pre Post
9/11 9/11
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o 2001 Consensus $1.48 $1.48
o 2002 Incremental Earnings Range:
o One-Time Write-Off (added back) $ .07 - $ .07
o Same Store Sales Growth 03 - 02
o Capital Transactions and Refinancings 05 - 07
o 10% Work Force Reduction 02 - 01
o Development Pipeline 01 - 01
o Uncertainty (.01) - (.01)
o 2002 Earnings Estimates $1.65 - $1.65
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[GRAPHIC] 30 YEARS
Dividend is Safe
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FFO $ 1.65
Capital Replacements (0.23)
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AFFO $ 1.42
Debt Amortization (0.11)
Dividends (1.11)
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Cash Flow $ 0.20
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Payout:
FFO 67%
AFFO 78%
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[GRAPHIC] 30 YEARS
Modest Exposure to
Current Economic Climate
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o Class B Is More Resilient in a Slowdown
o Downside Exposure
o Impacted industries - (less than) 2% of portfolio
o Corporate housing - negligible
o Development pipeline - very small
o Excellent Diversification
o Properties span most U.S. regions
o All markets are less than 6% of total revenue
o Growth Does Not Require Capital
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[GRAPHIC] 30 YEARS
Reasons Why Class B Is More Resilient
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o Easier to Afford, Better Value
o Reach 75% of Apartment Renters
o Class B Renters Less Likely to Move to House
o Residents More Likely to Find New Employment Quicker
o Third Party Verification ... AXIOMetrics
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[GRAPHIC] 30 YEARS
What Does a "B" Community Look Like?
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[PHOTO]
Meadows at Kildaire
Raleigh, North Carolina
332 units
Average Rent $828
[PHOTO]
Sierra Palms
Phoenix, Arizona
320 units
Average Rent $804
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[GRAPHIC] 30 YEARS
What Does a "B" Community Look Like?
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[PHOTO]
Red Stone Ranch
Austin, Texas
324 units
Average Rent $824
[PHOTO]
The Mandolin
Dallas/Fort Worth, Texas
308 units
Average Rent $878
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[GRAPHIC] 30 YEARS
Key Topics
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o UDR: Class B Apartment Leader
o Solid Total Return Potential ... In a Slowing Economy
- --> New Initiatives to Strengthen Performance
o Investment Considerations
15
[GRAPHIC] 30 YEARS
2002 Business Plan
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o Increase Operating Effectiveness
o Opportunistic Debt Refinancings
o Improve Asset Quality to Maximize Rents
o Streamline Portfolio to Improve Returns
o Further Strengthen Financial Structure
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Increase Operating Effectiveness
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o Focus on Core Business
o Strengthen Leasing Expiration Management Discipline
o Reduce Operating Expenses
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[GRAPHIC] 30 YEARS
Progress in Leasing Management
Discipline
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Action Result
Lease Expiration Increase Revenues
Management
600 to 420
Month-to-Month Leases Reduce Risk and Volatility
12% to 3%
60-Day Vacancies Strengthen Occupancy
1,200 to 180
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[GRAPHIC] 30 YEARS
Reduce Operating Expenses ...
Potential for Major Improvement
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o Payroll - Staffing Reduction in May 2001
o Taxes - Could be Reduced
o Repairs/Maintenance - Actively Re-bidding
o Insurance - Among Highest in Industry
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[GRAPHIC] 30 YEARS
Opportunistic Debt Refinancings
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o Potential to Refinance $300 to $400 Million in Secured Debt
o Savings of $.05 - .08 Per Share in 2002
o Create $50 - 70 Million of Shareholder Value on an NPV Basis
o Fixed Charge Ratio Improves to 2.1x
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[GRAPHIC] 30 YEARS
Improve Asset Quality to Drive Rents
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o Improving Age and Rents
[GRAPH]
1995 1996 1997 1998 1999 2000 2001
---- ---- ---- ---- ---- ---- ----
Avg. Rent $499 $540 $563 $600 $631 $667 $690
Age 15 yrs 14 yrs 13 yrs 14 yrs 13 yrs 12 yrs 12 yrs
o Development Activities ... 5 Years - $300 Million
o Reinvesting in Assets Through Maintenance and Capital Spending
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[GRAPHIC] 30 YEARS
Streamline Portfolio to Improve Returns
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o Current Portfolio
o 62 markets nationwide
o Own only 1 - 2 properties in 21 markets
o Portfolio Goal
o Prune to 20 - 30 markets over time
o Replace dispositions with acquisitions
o Minimum market - 1,500 to 2,000 units
o Maintain reasonable diversification
o Gain efficiencies, improve returns
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[GRAPHIC] 30 YEARS
Key Topics
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o UDR: Class B Apartment Leader
o Solid Total Return Potential ... In a Slowing Economy
o New Initiatives to Strengthen Performance
- --> Investment Considerations
23
[GRAPHIC] 30 YEARS
Investment Considerations ...
Closing Thoughts
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o New Management
o B Class Properties More Resilient in Downturn
o Total Return Potential ... 15 - 18%
o FFO Growth -- 8-10%
o Dividend Yield -- 7-8%
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