EX-99.1 3 dex991.txt PRESENTATION MATERIALS [LOGO OF UNITED DOMINION] Realty Trust The Wall Street Analyst Forum September 10, 2001 [LOGO OF UNITED DOMINION] Realty Trust Agenda -------------------------------------------------------------------------------- . Overview of the Company . Comparative Returns . Our Business Plan . Lasting Impressions 2 [LOGO OF UNITED DOMINION] Realty Trust Overview -------------------------------------------------------------------------------- . Middle Market Apartments . Diversified Portfolio Across Growing Markets . 3rd Largest Apartment REIT Market Capitalization of $4.0 Billion . 25 Consecutive Years of Dividend Increases 3 [LOGO OF UNITED DOMINION] Realty Trust Historical Returns -------------------------------------------------------------------------------- 6 mos 1 yr 5 yrs ----- ------ ----- UDR 19% 43% 42% Apartments 13 18 62 Office 7 11 15 Retail 14 24 32 Hotels 3 18 (31) S&P (11) (26) 29 4 [LOGO OF UNITED DOMINION] Realty Trust Our Business Plan -------------------------------------------------------------------------------- . Increased Operating Efficiency . Continued Improvement in Asset Quality . Portfolio Repositioning Strategy 5 [LOGO OF UNITED DOMINION] Realty Trust The Result... -------------------------------------------------------------------------------- . Increased Operating Efficiency . Continued Improvement in Asset Quality . Portfolio Repositioning Strategy 8-10% FFO Growth Plus 7-8% Dividend Yield 15-18% Total Return 6 [LOGO OF UNITED DOMINION] Realty Trust Increased Operating Efficiency -------------------------------------------------------------------------------- . Revenue Management . Expense Reduction . Bottom Line Orientation 7 [LOGO OF UNITED DOMINION] Realty Trust Revenue Management -------------------------------------------------------------------------------- 02/01 08/01 ----- ----- Lease Management 16% 7% Month-to-Month Leases 15% 5% 60 Days Vacant 430 250 8 [LOGO OF UNITED DOMINION] Realty Trust Expense Controls -------------------------------------------------------------------------------- [PIE CHART] Admin & Marketing 10% Taxes 26% Personnel 29% Insurance 6% Utilities 13% Repairs & Maintenance 16% Annual Cost Per Unit - $3,150 9 [LOGO OF UNITED DOMINION] Realty Trust Bottom Line Orientation -------------------------------------------------------------------------------- . Forced ranking of personnel based upon performance . All incentive plans tied to cash flow improvement over prior years 10 [LOGO OF UNITED DOMINION] Realty Trust Asset Quality ... Age and Rents -------------------------------------------------------------------------------- [LINE CHART] Average Rent 1995 - $500 1996 - $540 1997 - $563 1998 - $600 1999 - $631 2000 - $667 2001 - $690 Average Age 1995 - 18 1996 - 16.5 1997 - 14.5 1998 - 15 1999 - 13 2000 - 12 2001 - 12 11 [LOGO OF UNITED DOMINION] Realty Trust Asset Quality ... New Development -------------------------------------------------------------------------------- Average Return: 10.5% [Bar Chart] (In Millions) 1998 - $50 1999 - $57 2000 - $67 2001 - $70 2002 - $75 12 [LOGO OF UNITED DOMINION] Realty Trust The Mandolin Apartments Fort Worth, Texas -------------------------------------------------------------------------------- [PICTURES APPEAR HERE] 306 units 13 [LOGO OF UNITED DOMINION] Realty Trust The Meridian Apartments Dallas, Texas -------------------------------------------------------------------------------- [PICTURES APPEAR HERE] 250 units 14 [LOGO OF UNITED DOMINION] Realty Trust Repositioning the Portfolio for the Future -------------------------------------------------------------------------------- . Focus on Fewer Markets (20-30) . Market Concentration - Minimum of 1,500 - 2,000 units - Maximum of 10,000 - 12,000 units . Market Selection Criteria - Size - Rent and growth prospects - Portfolio diversification - Location of current holdings 15 [LOGO OF UNITED DOMINION] Realty Trust Financial Projections -------------------------------------------------------------------------------- FFO Earnings 2001 $ 1.48 2002 $ 1.65 FFO Growth 2001-02 11% Dividends/Yield $1.08/7.7% Net Asset Value $ 15.20 As of June 30, 2001 16 [LOGO OF UNITED DOMINION] Realty Trust Internal Growth -------------------------------------------------------------------------------- . 2001 Consensus $ 1.48 . 2002 Incremented Earnings - One-Time Write-Off $ .07 - $ .07 - Same Store Sales Growth .03 - .05 - Capital Transactions .02 - .03 - 10% Work Force Reduction .03 - .04 - Insurance Change .01 - .02 - Refinancing .01 - .02 - Development Pipeline .01 - .01 - Uncertainty (.02) - (.02) ------ ----- . 2002 Earnings Range $ 1.64 - $1.70 17 [LOGO OF UNITED DOMINION] Realty Trust Balance Sheet -------------------------------------------------------------------------------- Actual Est. 6/30/01 12/31/01 ------- -------- Fixed Charge Ratio 2.00 2.05 Debt/Market Cap 55% 53% Unencumbered Assets $2.4 billion $2.2 billion 18 [LOGO OF UNITED DOMINION] Realty Trust Lasting Impressions... -------------------------------------------------------------------------------- . FFO growth of 8-10% . Dividend yield of 7-8% Total Return of 15-18% 19