-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CdBFvhmS3udn+LAqf76ZsLCTTn+viFrwITqjekvueiVXqM76z/aIi8WnfYOnp9MD Qmwl9OPKtK/nAyJpMyUfWw== 0000916641-01-501720.txt : 20020412 0000916641-01-501720.hdr.sgml : 20020412 ACCESSION NUMBER: 0000916641-01-501720 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20011128 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20011130 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED DOMINION REALTY TRUST INC CENTRAL INDEX KEY: 0000074208 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 540857512 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10524 FILM NUMBER: 1803698 BUSINESS ADDRESS: STREET 1: 400 EAST CARY STREET CITY: RICHMOND STATE: VA ZIP: 23219-3802 BUSINESS PHONE: 8047802691 MAIL ADDRESS: STREET 1: 400 EAST CARY STREET CITY: RICHMOND STATE: VA ZIP: 23219-3802 FORMER COMPANY: FORMER CONFORMED NAME: OLD DOMINION REAL ESTATE INVESTMENT TRUS DATE OF NAME CHANGE: 19741216 FORMER COMPANY: FORMER CONFORMED NAME: OLD DOMINION REAL ESTATE INVESTMENT TRUST DATE OF NAME CHANGE: 19850110 FORMER COMPANY: FORMER CONFORMED NAME: OLD DOMINION REIT ONE DATE OF NAME CHANGE: 19770921 8-K 1 d8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): November 28, 2001 ----------------- UNITED DOMINION REALTY TRUST, INC. ---------------------------------- (Exact name of registrant as specified in its charter) Virginia 1-10524 54-0857512 - ------------------------------- ----------------------- ------------------ (State or other jurisdiction of (Commission File Number) (I.R.S. Employer incorporation of organization) Identification No.) 400 East Cary Street, Richmond, Virginia 23219 ---------------------------------------------- (Address of principal executive offices - zip code) (804) 780-2691 -------------- Registrant's telephone number, including area code ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits (c) Exhibits 99.1 Presentation Materials 2 ITEM 9. Regulation FD Disclosure United Dominion Realty Trust, Inc. is furnishing under Item 9 of this Current Report on Form 8-K the information included as Exhibit 99.1 to this report. Exhibit 99.1 includes information that United Dominion presented at the Fifth Annual REIT/Real Estate Conference in New York on November 28, 2001. Note: The information in this report (including the exhibit) is furnished pursuant to Item 9 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD. 3 Forward-Looking Statements and Qualifications In addition to historical information, this presentation contains forward-looking statements. The statements are based on current expectations, estimates and projections about the industry and markets in which United Dominion operates, as well as management's beliefs and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which may cause the Company's actual results, performance or achievements pursuant to its disposition programs and its other activities to be materially different from the results, plans or expectations expressed or implied by such statements. For more details, please refer to the Company's SEC filings, including its most recent annual report on Form 10-K and quarterly reports on Form 10-Q. Important Notes Because this presentation was prepared as a slide show, the text on each page was kept to a minimum to facilitate visual communication and to emphasize major points. This presentation is dated November 28, 2001, and the information and analyses presented should be read as of that date. About United Dominion Realty Trust, Inc. United Dominion is one of the country's largest multifamily real estate investment trusts owning and operating apartment communities nationwide. The Company currently owns all or an interest in approximately 77,000 apartment homes and is the developer for approximately 500 homes under construction. United Dominion's common stock is traded on the New York Stock Exchange under the symbol UDR. Additional information about United Dominion may be found on its web site at www.udrt.com. 4 Signatures Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. UNITED DOMINION REALTY TRUST, INC. Date: November 30, 2001 /s/ Christopher D. Genry ---------------------- ---------------------------------------- Christopher D. Genry Executive Vice President and Chief Financial Officer Date: November 30, 2001 /s/ Scott A. Shanaberger ---------------------- ---------------------------------------- Scott A. Shanaberger Vice President and Chief Accounting Officer 5 Exhibit Index 99.1 Presentation Materials 6 EX-99.1 3 dex991.txt EXHIBIT 99.1 [UNITED DOMINION REALTY TRUST LOGO] [GRAPHIC] 30 YEARS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Wachovia Securities Fifth Annual REIT/Real Estate Conference November 28, 2001 New York [GRAPHIC] 30 YEARS Agenda - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- - --> 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 - -------------------------------------------------------------------------------- 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 4 [GRAPHIC] 30 YEARS National Portfolio of 78,000 Apartment Homes - -------------------------------------------------------------------------------- [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 5 [GRAPHIC] 30 YEARS Key Topics - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- [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 7 [GRAPHIC] 30 YEARS 2002 FFO Growth Will Lead Industry - -------------------------------------------------------------------------------- [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% 8 [GRAPHIC] 30 YEARS 2002 Projections Remain Unchanged - -------------------------------------------------------------------------------- Pre Post 9/11 9/11 ----- ----- 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 9 [GRAPHIC] 30 YEARS Dividend is Safe - -------------------------------------------------------------------------------- FFO $ 1.65 Capital Replacements (0.23) ------- AFFO $ 1.42 Debt Amortization (0.11) Dividends (1.11) ------- Cash Flow $ 0.20 ======= Payout: FFO 67% AFFO 78% 10 [GRAPHIC] 30 YEARS Modest Exposure to Current Economic Climate - -------------------------------------------------------------------------------- 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 11 [GRAPHIC] 30 YEARS Reasons Why Class B Is More Resilient - -------------------------------------------------------------------------------- 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 12 [GRAPHIC] 30 YEARS What Does a "B" Community Look Like? - -------------------------------------------------------------------------------- [PHOTO] Meadows at Kildaire Raleigh, North Carolina 332 units Average Rent $828 [PHOTO] Sierra Palms Phoenix, Arizona 320 units Average Rent $804 13 [GRAPHIC] 30 YEARS What Does a "B" Community Look Like? - -------------------------------------------------------------------------------- [PHOTO] Red Stone Ranch Austin, Texas 324 units Average Rent $824 [PHOTO] The Mandolin Dallas/Fort Worth, Texas 308 units Average Rent $878 14 [GRAPHIC] 30 YEARS Key Topics - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 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 16 [GRAPHIC] 30 YEARS Increase Operating Effectiveness - -------------------------------------------------------------------------------- o Focus on Core Business o Strengthen Leasing Expiration Management Discipline o Reduce Operating Expenses 17 [GRAPHIC] 30 YEARS Progress in Leasing Management Discipline - -------------------------------------------------------------------------------- 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 18 [GRAPHIC] 30 YEARS Reduce Operating Expenses ... Potential for Major Improvement - -------------------------------------------------------------------------------- o Payroll - Staffing Reduction in May 2001 o Taxes - Could be Reduced o Repairs/Maintenance - Actively Re-bidding o Insurance - Among Highest in Industry 19 [GRAPHIC] 30 YEARS Opportunistic Debt Refinancings - -------------------------------------------------------------------------------- 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 20 [GRAPHIC] 30 YEARS Improve Asset Quality to Drive Rents - -------------------------------------------------------------------------------- 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 21 [GRAPHIC] 30 YEARS Streamline Portfolio to Improve Returns - -------------------------------------------------------------------------------- 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 22 [GRAPHIC] 30 YEARS Key Topics - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 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% 24 -----END PRIVACY-ENHANCED MESSAGE-----