Form 10-Q/A
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
________________________
AMENDMENT TO APPLICATION OR REPORT
Filed Pursuant to Section 12, 13, or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
United Dominion Realty Trust, Inc.
(Exact name of registrant as specified in its charter)
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its Quarterly Report on Form 10-Q
for the quarter ended September 30, 1995 as set forth in the pages attached
hereto.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 of the Notes to Consolidated Financial Statements was updated to
reference Note 9 of the Notes to the Consolidated Financial Statements.
MANAGEMENT'S DISCUSSION AND ANALYSIS
The paragraph discussing General and Administrative expense for the third
quarter of 1995 versus the third quarter of 1994 was updated to include an
explanation of the decrease in general and administrative expense for the
third quarter of 1995.
Date: January 31, 1996 By: /s/ JERRY A. DAVIS
Jerry A. Davis, Vice President and
Corporate Controller
UNITED DOMINION REALTY TRUST, INC.
Notes to Consolidated Financial Statements
September 30, 1995
(Unaudited)
1. The accompanying consolidated financial statements include
the accounts of the Trust and its wholly-owned subsidiaries. All
significant inter-company accounts have been eliminated in consolidation.
The financial information furnished reflects all adjustments which
are necessary for a fair presentation of financial position at
September 30, 1995 and results of operations for the interim
periods ended September 30, 1995 and 1994. Except as described in Note
9, such adjustments are of a normal and recurring nature. The interim
results presented are not necessarily indicative of results that
can be expected for a full year. The accompanying financial statements
should be read in conjunction with the audited financial statements and
related notes appearing in the Trust's 1994 Annual Report.
2. Certain previously reported amounts have been reclassified to conform with
current financial statement presentation.
3. Mortgage notes payable consist of conventional mortgage notes payable
and "bond indebtedness" which represents mortgages or deeds of trust granted
to secure tax-exempt bonds issued to finance the acquisition and/or
rehabilitation of certain of the Trust's properties. Conventional mortgage
notes payable included 17 loans encumbering 11 properties at September
30, 1995 and 23 loans encumbering 17 properties at September 30, 1994.
Mortgage notes payable aggregating $45.4 million at September 30, 1995
had fixed rates of interest ranging from 7.00% to 9.625% (weighted average
interest rate of 8.03%). Bond indebtedness aggregating $109.2 million and
encumbering 16 properties at September 30, 1995 had fixed rates of interest
ranging from 5.98% to 8.50% (weighted average interest rate of 6.83%).
At September 30, 1995, the Trust had variable rate bond indebtedness
encumbering four properties aggregating $17.7 million (weighted average
interest rate of 5.23%).
During the nine months ended September 30, 1995, the Trust assumed
two mortgage notes payable in connection with the acquisitions of certain
apartment properties which includes (i) a $3.3 million mortgage note
payable bearing interest at 7.6% (fixed) maturing in November, 2002, and
(ii) a $9.5 million variable rate tax-exempt bond issue ($3.9 million of
which has been defeased) which will be refunded in whole or in part in
March, 1996. The Trust completed separate tax-exempt bond refundings on
two properties totaling $15.8 million during the second quarter of 1995.
The bonds bear interest at 6.75% and have a final maturity in 2025. During
this same period, the Trust prepaid six mortgage notes payable aggregating
approximately $10.2 million with interest rates ranging from 9.0% to
12.5% (weighted average interest rate of 10.1%).
and the operating expense ratio was 42.0%. For all of the Trust's 32,662
units, economic occupancy was 94.0%, and the operating expense ratio was
43.3% for the third quarter of 1995. During the third quarter last year,
the 27,547 units then owned had economic occupancy of 94.3% and operating
expense ratio of 43.7%.
For the third quarter of 1995 versus the third quarter of 1994:
(bullet) Net operating income from commercial properties decreased 27.5% or
$509,000 as a direct result of the sale of one shopping center during
1994 and six shopping centers during 1995.
(bullet) Interest expense increased approximately $2.4 million as the Trust
had more debt outstanding on average in 1995 than in 1994. On a per
share basis, interest expense increased $.04.
(bullet) Depreciation of real estate owned increased $2.1 million primarily
from the portfolio expansion that has occurred during the last year.
(bullet) General and administrative expense, which includes corporate
expenses, decreased approximately $91,000 or 8.4%. Expenses associated
with abandoned property acquisitions, management bonus expense and
construction administration expenses were all lower in the 1995
quarter.
(bullet) Property management expenses increased $242,000. Property management
expenses for the third quarter of 1995 include a $500,000 accrual
for estimated employment and other taxes associated with employee
occupied apartment units for the 1993 and 1994 tax years, as a
result of the completion of an Internal Revenue Service examination.
(bullet) Gains (losses) on the sales of real estate owned includes the
recognition, for financial reporting purposes, an aggregate $205,000
gain on the sale of a shopping center and an outparcel of land at
a second shopping center. The shopping center sale was structured
to qualify as a like-kind exchange under Section 1031 of the
Internal Revenue Code, so the related capital gain will be deferred
for Federal income tax purposes.
(bullet) Net income available to common shareholders decreased $899,000. Net
income available to common shareholders for the third quarter of 1995
includes a $2.4 million preferred stock dividend not included in
last year's results.
NINE MONTH PERIODS ENDED SEPTEMBER 30, 1995 AND 1994
For the first nine months of 1995, the Trust reported increases over the
comparable 1994 period in rental income, income from property operations, net
income and funds from operations. The majority of the reported increases were
attributable to the Trust's apartment acquisitions since the beginning of 1994.
The performance of the Trust's 17,916 mature apartments contributed to the
increases with economic occupancy to 95.0% in the current year compared to
93.8% for the first nine months last year. Rental revenues at these properties
grew by 5.2% and operating expenses increased approximately 1.0%, decreasing
the operating