EX-99.1 2 dex991.txt PRESENTATION MATERIALS NAREIT Institutional Investor Forum United Dominion Realty Trust 1 United Dominion Realty Trust NAREIT Presentation -------------------------------------------------------------------------------- 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 2 United Dominion Realty Trust Overview -------------------------------------------------------------------------------- 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 3 United Dominion Realty Trust Overview - Geographical Distribution -------------------------------------------------------------------------------- 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 4 United Dominion Realty Trust Overview - Financials -------------------------------------------------------------------------------- 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 5 United Dominion Realty Trust First 120 Days -------------------------------------------------------------------------------- o New Management Team o One Time Charge to Earnings o Improvements to Earnings o Capital Transactions 6 United Dominion Realty Trust Management Team -------------------------------------------------------------------------------- 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 7 United Dominion Realty Trust One Time Charge to Earnings -------------------------------------------------------------------------------- (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 8 United Dominion Realty Trust Improvement in Earnings -------------------------------------------------------------------------------- (In Millions) 2001 Work Force $ 3.5 Insurance .6 Interest Savings 1.0 First 120 Days 9 United Dominion Realty Trust Capital Transactions -------------------------------------------------------------------------------- (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 10 United Dominion Realty Trust Asset Quality Overview -------------------------------------------------------------------------------- o Rental Growth/Average Age o Reinvestments o Development Pipeline 11 United Dominion Realty Trust Rental Growth/Average Age -------------------------------------------------------------------------------- [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 12 United Dominion Realty Trust Reinvesting in Assets -------------------------------------------------------------------------------- (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 13 United Dominion Realty Trust Development Pipeline -------------------------------------------------------------------------------- Average Return: 10.5% [Bar Chart] (In Millions) 1998 $50 1999 $57 2000 $67 2001 $70 2002 $75 Asset Quality 14 United Dominion Realty Trust Financial Overview -------------------------------------------------------------------------------- o Earnings Estimates o Financial Ratios o Net Asset Value 15 United Dominion Realty Trust Earnings Estimates ...The Bottom Line -------------------------------------------------------------------------------- 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 16 United Dominion Realty Trust Financial Ratios -------------------------------------------------------------------------------- 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 17 United Dominion Realty Trust Net Asset Value -------------------------------------------------------------------------------- $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 18 United Dominion Realty Trust The Next Twelve Months -------------------------------------------------------------------------------- o Focus on Positioning the Portfolio o Increase Operating Efficiency 19 United Dominion Realty Trust Positioning the Portfolio -------------------------------------------------------------------------------- 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 20 United Dominion Realty Trust Revenue Management -------------------------------------------------------------------------------- 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 21 United Dominion Realty Trust Expense Control -------------------------------------------------------------------------------- [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 22 United Dominion Realty Trust Closing ...during the next 365 days -------------------------------------------------------------------------------- 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 23