UNITED DOMINION
Realty Trust
February 2001
United Dominion
- --------------------------------------------------------------------------------
. Founded in 1972
. 78,000 apartment homes
. 32 major markets nationwide
. 23 consecutive years of increasing dividends
. Solid middle market portfolio
2
Geographically Diverse
- --------------------------------------------------------------------------------
[MAP APPEARS HERE]
Major Markets in 1995
Major Markets added since 1995
3
Financial Highlights
- --------------------------------------------------------------------------------
. $4 billion of real estate owned
. $3.6 billion total market capitalization
. Debt ratings: Baa2/BBB-
. $1.2 billion market value of common stock
4
Common Stock Dividend:
Record of Annual Increases
- --------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
$0.62 $0.63 $0.66 $0.70 $0.78 $0.90 $0.96 $1.01 $1.05 $1.06 $1.07
5
Attractive Dividend Yield
- --------------------------------------------------------------------------------
Current Dividend Rate $ 1.07
Stock Price $11.44
Yield 9.4%
6
Share Liquidity
- --------------------------------------------------------------------------------
UDR
---
Average Daily Share Volume
(30 days through 2/15/01):
303,000
7
Net Asset Value
- --------------------------------------------------------------------------------
Net Asset Value* $ 14.00
Common Share Price 11.44
-----------
Discount $ 2.56
===========
% Discount 18%
*Average of third-party and company estimates
8
High Yield & Low Multiple
- --------------------------------------------------------------------------------
UDR Average*
--- --------
Dividend Yield 9.4% 7.2%
FFO Multiple** 7.4X 9.2X
*AIV, AML, AVB, CPT, EQR, GBP, PPS, SMT
** Based on consensus estimate for 2001 FFO/share
9
Issues Affecting FFO Multiple
- -----------------------------
. Management succession
. Debt level in capitalization
. Consistent earnings growth
10
Management Succession
- --------------------------------------------------------------------------------
. Tom Toomey appointed as President and CEO
11
Tom Toomey
- --------------------------------------------------------------------------------
. Formerly EVP and COO at AIMCO
. Experienced with national portfolio
. Experienced with middle-market portfolio
. Strong and forceful leadership skills
. Served as SVP and Treasurer at Lincoln
. Practiced with Arthur Andersen & Co.
12
Management Succession
- ---------------------------------------------------------
. Tom Toomey appointed as President and CEO
. John McCann remaining on Board of Directors
13
Issues Affecting FFO Multiple
- ------------------------------
. Management succession
. Debt level in capitalization
. Consistent earnings growth
14
Upgrading Program Completed
- --------------------------------------------------------------------------------
Cap Ex/Mature Apartment Home
(includes recurring and upgrades)
[GRAPH]
1995 $ 424
1996 $ 832
1997 $ 832
1998 $1,112
1999 $ 640
2000 $ 514
15
Development Joint Venture
- --------------------------------------------------------------------------------
Date Formed June 2000
Projected Total Assets $104MM
Debt/Equity 70%/30%
Debt Non-recourse
UDR Ownership 25%
Fee Income Development, general contracting and management
Exit Buy/sell provision
No puts or guarantees
16
Property Sales ($MM)
- --------------------------------------------------------------------------------
[GRAPH]
1996 $ 34
1997 $ 77
1998 $155
1999 $237
2000 $214
17
Limited Acquisition Activity
------------------------------------------------------------------------------
. Driven by 1031 requirements
. In markets where United Dominion has:
- Favorable outlook for supply/demand
- Existing communities
- Strong management team
18
Stock Repurchase Programs
- --------------------------------------------------------------------------------
Repurchased
Authorized To Date
---------- -------
Common 11 MM shares 5.6 MM shares
Preferred $25MM $16.6 MM
Repurchase approach: Open-market purchases
Opportunistic
19
Total Debt ($MM)
- --------------------------------------------------------------------------------
[GRAPH]
Dec. 31, 1998 $2,117
June 30, 1999 $2,168
Dec. 31, 1999 $2,127
June 30, 2000 $2,075
Dec. 31, 2000 $1,992
20
Increasing Financial Flexibility
- --------------------------------------------------------------------------------
Maturing Debt (excl revolving bank debt) - in millions
[GRAPH APPEARS HERE]
21
Issues Affecting FFO Multiple
- --------------------------------------------------------------------------------
. Management Succession
. Debt level in capitalization
. Prospects for steady/accelerating growth
22
Diverse Operations
- --------------------------------------------------------------------------------
% of 2000 NOI
[PIE CHART APPEARS HERE]
23
Same-Community Results
- --------------------------------------------------------------------------------
12 Months 2000
-----------------------------------------------
Occupancy Rent Growth NOI Growth
--------- ----------- ----------
San Francisco 99.5% 8.1% 11.8%
Monterey Peninsula 94.8% 6.9% 9.6%
Richmond 96.2% 3.5% 8.5%
Fort Worth 96.1% 2.8% 7.5%
Tampa 94.7% 2.9% 3.6%
Phoenix 93.3% 2.6% 3.6%
San Antonio 93.7% 2.4% 3.1%
Dallas 95.2% 3.1% 2.7%
Orlando 94.4% 2.9% 2.2%
Houston 92.8% 2.2% 1.5%
Charlotte 92.0% -0.6% -6.1%
Raleigh 90.8% 2.0% -7.5%
Total same communities 94.2% 2.9% 4.1%
24
Market Focus
- --------------------------------------------------------------------------------
. Middle-market apartments
. Renter-by-necessity
. Expanded presence in target markets
. Favorable demographics
25
Population Turning 22
- --------------------------------------------------------------------------------
1960-2010
[GRAPH APPEARS HERE]
Source: US Census Bureau, National Center for Health Statistics, RCG
26
1999-2000 Occupancy
- --------------------------------------------------------------------------------
Economic -- Physical
[GRAPH APPEARS HERE]
27
United Dominion
- --------------------------------------------------------------------------------
. High base level return from dividend yield
. Low market valuation measures
- FFO/share multiple
- Price vs. NAV
. Taking action on issues
- management succession
- debt levels
- consistency of earnings growth
28
[LOGO OF UNITED DOMINION]
Realty Trust
February 2001