þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended March 31, 2006 | ||
or | ||
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Maryland | 54-0857512 | |
(State or other jurisdiction of
incorporation of organization) |
(I.R.S. Employer
Identification No.) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o |
1
Item 1. | FINANCIAL STATEMENTS |
2
Three Months Ended
March 31,
2006
2005
$
176,810
$
158,636
12,306
1,178
618
1,178
12,924
177,988
171,560
23,232
19,172
17,306
15,969
11,283
9,571
10,300
9,835
5,423
5,570
4,991
4,813
298
290
57,397
48,566
44,094
38,572
6,764
7,000
6,644
704
652
181,792
166,654
(3,804
)
4,906
(16
)
(58
)
468
(59
)
(3,352
)
4,789
15,359
10,152
12,007
14,941
(2,911
)
(2,911
)
(931
)
(931
)
$
8,165
$
11,099
$
(0.05
)
$
0.01
$
0.11
$
0.07
$
0.06
$
0.08
$
0.3125
$
0.3000
133,589
136,067
133,589
137,073
3
Three Months Ended
March 31,
2006
2005
$
12,007
$
14,941
59,435
52,390
(15,347
)
(7,023
)
549
749
1,427
2,330
1,210
1,025
1,633
(2,715
)
(28,697
)
(11,327
)
32,217
50,370
29,135
70,451
29,385
(18,556
)
(121,587
)
(12,575
)
(9,836
)
(48,006
)
(26,483
)
(367
)
(812
)
17,039
(20,984
)
(71,228
)
(955
)
(5,687
)
105,152
6,858
(108,952
)
(24,820
)
73,400
70,700
(827
)
(685
)
3,167
1,031
(3,192
)
(3,082
)
(3,842
)
(3,842
)
(40,229
)
(40,020
)
9,560
14,615
20,793
(6,243
)
15,543
7,904
$
36,336
$
1,661
$
46,622
$
39,787
29
1,317
201
8,725
4
Preferred Stock
Common Stock
Distributions in
Paid-in
Excess of
Shares
Amount
Shares
Amount
Capital
Net Income
Total
8,219,821
$
181,971
134,012,053
$
1,340
$
1,680,115
$
(755,702
)
$
1,107,724
12,007
12,007
12,007
12,007
263,889
3
4,374
4,377
3,900
29
29
(41,992
)
(41,992
)
(2,911
)
(2,911
)
(931
)
(931
)
8,219,821
$
181,971
134,279,842
$
1,343
$
1,684,518
$
(789,529
)
$
1,078,303
5
1. | CONSOLIDATION AND BASIS OF PRESENTATION |
6
2. | REAL ESTATE HELD FOR INVESTMENT |
March 31, | December 31, | |||||||
2006 | 2005 | |||||||
Land and land improvements
|
$ | 1,264,145 | $ | 1,267,167 | ||||
Buildings and improvements
|
3,736,140 | 3,689,015 | ||||||
Furniture, fixtures, and equipment
|
275,404 | 259,506 | ||||||
Real estate held for investment
|
5,275,689 | 5,215,688 | ||||||
Accumulated depreciation
|
(1,137,308 | ) | (1,080,616 | ) | ||||
Real estate held for investment, net
|
$ | 4,138,381 | $ | 4,135,072 | ||||
3. | INCOME FROM DISCONTINUED OPERATIONS |
7
Three Months Ended | ||||||||
March 31, | ||||||||
2006 | 2005 | |||||||
Rental income
|
$ | 4,704 | $ | 16,439 | ||||
Non-property income
|
| 8 | ||||||
4,704 | 16,447 | |||||||
Rental expenses
|
2,357 | 7,116 | ||||||
Real estate depreciation
|
1,326 | 3,153 | ||||||
Interest
|
| 577 | ||||||
Loss on early debt retirement
|
| 1,821 | ||||||
Other expenses
|
8 | 19 | ||||||
3,691 | 12,686 | |||||||
Income before net gain on the sale of depreciable property and
minority interests
|
1,013 | 3,761 | ||||||
Net gain on the sale of depreciable property
|
15,347 | 7,023 | ||||||
Income before minority interests
|
16,360 | 10,784 | ||||||
Minority interests on income from discontinued operations
|
(1,001 | ) | (632 | ) | ||||
Income from discontinued operations, net of minority interests
|
$ | 15,359 | $ | 10,152 | ||||
8
4.
SECURED DEBT
Weighted
Weighted
Number of
Principal Outstanding
Average
Average Years
Communities
Interest Rate
to Maturity
Encumbered
March 31,
December 31,
2006
2005
2006
2006
2006
$
358,373
$
359,281
5.34%
5.2
14
26,400
26,400
5.85%
18.9
3
363,875
363,875
6.09%
5.1
9
748,648
749,556
5.72%
5.6
26
73,275
66,464
5.97%
4.5
4
7,770
7,770
3.42%
22.3
1
292,469
292,469
5.09%
6.7
47
373,514
366,703
5.23%
6.6
52
$
1,122,162
$
1,116,259
5.56%
5.9
78
Fixed | Variable | Total | ||||||||||
Rate | Rate | Secured | ||||||||||
Year | Maturities | Maturities | Maturities | |||||||||
2006
|
$ | 31,217 | $ | 3,967 | $ | 35,184 | ||||||
2007
|
81,592 | 419 | 82,011 | |||||||||
2008
|
9,254 | 31,474 | 40,728 | |||||||||
2009
|
4,575 | | 4,575 | |||||||||
2010
|
237,147 | | 237,147 | |||||||||
Thereafter
|
384,863 | 337,654 | 722,517 | |||||||||
$ | 748,648 | $ | 373,514 | $ | 1,122,162 | |||||||
9
5.
UNSECURED DEBT
2006
2005
$
284,200
$
210,800
85,374
85,374
25,000
25,000
92,255
92,255
75,000
75,000
200,000
200,000
29,081
29,081
50,000
50,000
200,000
200,000
50,000
50,000
100,000
100,000
200,000
200,000
250,000
250,000
100,000
100,000
54,118
54,118
250,000
250,000
275
370
1,761,103
1,761,198
24,820
46,700
46,700
46,700
71,520
$
2,092,003
$
2,043,518
(a) | United Dominion has a three-year $500 million unsecured revolving credit facility. The credit facility matures on May 31, 2008, and at United Dominions option, can be extended for an additional year. United Dominion has the right to increase the credit facility to $750 million if the initial lenders increase their commitments or we receive commitments from additional lenders. Based on United Dominions current credit ratings, the credit facility carries an interest rate equal to LIBOR plus a spread of 57.5 basis points, which represents a 12.5 basis point reduction to the previous unsecured revolver, and the facility fee was reduced from 20 basis points to 15 basis points. Under a competitive bid feature and for so long as United Dominion maintains an Investment Grade Rating, United Dominion has the right to bid out 100% of the commitment amount. |
(b) | Represents deferred gains from the termination of interest rate risk management agreements. |
10
6. | EARNINGS PER SHARE |
Three Months Ended | |||||||||
March 31, | |||||||||
2006 | 2005 | ||||||||
Numerator for basic and diluted earnings per share
|
|||||||||
Net income available to common stockholders
|
$ | 8,165 | $ | 11,099 | |||||
Denominator:
|
|||||||||
Denominator for basic earnings per share
|
|||||||||
Weighted average common shares outstanding
|
134,216 | 136,913 | |||||||
Non-vested restricted stock awards
|
(627 | ) | (846 | ) | |||||
133,589 | 136,067 | ||||||||
Effect of dilutive securities:
|
|||||||||
Employee stock options and non-vested restricted stock awards
|
| 1,006 | |||||||
Denominator for diluted earnings per share
|
133,589 | 137,073 | |||||||
Basic earnings per share
|
$ | 0.06 | $ | 0.08 | |||||
Diluted earnings per share
|
$ | 0.06 | $ | 0.08 | |||||
7. | COMPREHENSIVE INCOME |
11
8. | COMMITMENTS AND CONTINGENCIES |
Series C Out-Performance Program |
i. determining the amount by which the cumulative total return of United Dominions common stock over the measurement period exceeds the Minimum Return (such excess being the Excess Return); | |
ii. multiplying 2% of the Excess Return by United Dominions market capitalization (defined as the average number of shares outstanding over the 36-month period, including common stock, OP Units, and common stock equivalents) multiplied by the daily closing price of United Dominions common stock, up to a maximum of 1% of market capitalization; and | |
iii. dividing the number obtained in (ii) by the market value of one share of United Dominions common stock on the valuation date, determined by the volume-weighted average price per day of common stock for the 20 trading days immediately preceding the valuation date. |
12
Series D Out-Performance Program |
i. determining the amount by which the cumulative total return of United Dominions common stock over the measurement period exceeds the Minimum Return (such excess being the Excess Return); | |
ii. multiplying 2% of the Excess Return by United Dominions market capitalization (defined as the average number of shares outstanding over the 36-month period, including common stock, OP Units, and common stock equivalents) multiplied by the daily closing price of United Dominions common stock, up to a maximum of 1% of market capitalization; and | |
iii. dividing the number obtained in (ii) by the market value of one share of United Dominions common stock on the valuation date, computed as the volume-weighted average price per day of the common stock for the 20 trading days immediately preceding the valuation date. |
13
Item 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
| unfavorable changes in apartment market and economic conditions that could adversely affect occupancy levels and rental rates, | |
| the failure of acquisitions to achieve anticipated results, | |
| possible difficulty in selling apartment communities, | |
| the timing and closing of planned dispositions under agreement, | |
| competitive factors that may limit our ability to lease apartment homes or increase or maintain rents, | |
| insufficient cash flow that could affect our debt financing and create refinancing risk, | |
| failure to generate sufficient revenue, which could impair our debt service payments and distributions to stockholders, | |
| development and construction risks that may impact our profitability, | |
| potential damage from natural disasters, including hurricanes and other weather-related events, which could result in substantial costs, | |
| risks from extraordinary losses for which we may not have insurance, | |
| uninsured losses due to insurance deductibles, self-insurance retention, uninsured claims or casualties, or losses in excess of applicable coverage, | |
| delays in completing developments and lease-ups on schedule, | |
| our failure to succeed in new markets, | |
| changing interest rates, which could increase interest costs and affect the market price of our securities, | |
| potential liability for environmental contamination, which could result in substantial costs, | |
| the imposition of federal taxes if we fail to qualify as a REIT in any taxable year, | |
| our internal control over financial reporting may not be considered effective which could result in a loss of investor confidence in our financial reports, and in turn have an adverse effect on our stock price, and | |
| changes in real estate tax and other laws. |
14
Three Months Ended | |||||||||||||||||||||||||
As of March 31, 2006 | March 31, 2006 | ||||||||||||||||||||||||
Number of | Number of | Percentage of | Carrying | Average | Total Income | ||||||||||||||||||||
Apartment | Apartment | Carrying | Value | Physical | per Occupied | ||||||||||||||||||||
Communities | Homes | Value | (In thousands) | Occupancy | Home(a) | ||||||||||||||||||||
MID-ATLANTIC REGION
|
|||||||||||||||||||||||||
Metropolitan DC
|
8 | 2,471 | 4.6 | % | $ | 253,346 | 96.6 | % | $ | 1,179 | |||||||||||||||
Raleigh, NC
|
11 | 3,663 | 4.0 | % | 221,357 | 93.2 | % | 689 | |||||||||||||||||
Baltimore, MD
|
10 | 2,118 | 3.1 | % | 171,244 | 95.8 | % | 1,029 | |||||||||||||||||
Richmond, VA
|
9 | 2,636 | 2.9 | % | 161,600 | 96.6 | % | 854 | |||||||||||||||||
Charlotte, NC
|
7 | 1,686 | 2.0 | % | 112,373 | 93.9 | % | 707 | |||||||||||||||||
Wilmington, NC
|
6 | 1,868 | 1.8 | % | 99,534 | 94.4 | % | 743 | |||||||||||||||||
Norfolk, VA
|
6 | 1,438 | 1.3 | % | 70,665 | 95.5 | % | 901 | |||||||||||||||||
Other North Carolina
|
16 | 4,016 | 3.5 | % | 193,115 | 93.5 | % | 635 | |||||||||||||||||
Other Mid-Atlantic
|
6 | 1,156 | 1.1 | % | 61,905 | 94.5 | % | 893 | |||||||||||||||||
Other Virginia
|
3 | 820 | 0.9 | % | 49,219 | 94.1 | % | 988 | |||||||||||||||||
WESTERN REGION
|
|||||||||||||||||||||||||
Southern California
|
26 | 7,018 | 19.2 | % | 1,066,832 | 94.3 | % | 1,328 | |||||||||||||||||
Northern California
|
10 | 2,689 | 6.4 | % | 357,616 | 95.3 | % | 1,291 | |||||||||||||||||
Seattle, WA
|
8 | 1,984 | 3.0 | % | 167,902 | 95.2 | % | 870 | |||||||||||||||||
Monterey Peninsula, CA
|
7 | 1,568 | 2.5 | % | 141,397 | 88.3 | % | 934 | |||||||||||||||||
Portland, OR
|
6 | 1,374 | 1.5 | % | 84,098 | 94.5 | % | 722 | |||||||||||||||||
SOUTHEASTERN REGION
|
|||||||||||||||||||||||||
Tampa, FL
|
12 | 4,245 | 4.7 | % | 264,260 | 92.8 | % | 911 | |||||||||||||||||
Orlando, FL
|
14 | 4,140 | 4.2 | % | 235,803 | 95.0 | % | 852 | |||||||||||||||||
Nashville, TN
|
9 | 2,580 | 2.8 | % | 157,891 | 95.0 | % | 741 | |||||||||||||||||
Jacksonville, FL
|
4 | 1,557 | 1.9 | % | 105,014 | 93.9 | % | 825 | |||||||||||||||||
Atlanta, GA
|
6 | 1,426 | 1.4 | % | 79,547 | 95.8 | % | 685 |
15
Three Months Ended
As of March 31, 2006
March 31, 2006
Number of
Number of
Percentage of
Carrying
Average
Total Income
Apartment
Apartment
Carrying
Value
Physical
per Occupied
Communities
Homes
Value
(In thousands)
Occupancy
Home(a)
6
1,584
1.2
%
68,477
94.2
%
655
6
1,737
2.1
%
119,659
96.3
%
934
2
798
0.8
%
41,729
94.7
%
541
16
5,447
4.6
%
257,159
95.2
%
667
4
1,543
1.9
%
106,422
95.9
%
775
6
1,511
1.9
%
106,198
87.6
%
884
7
2,156
1.9
%
106,075
96.0
%
649
3
1,484
1.8
%
101,070
87.2
%
692
5
1,425
1.5
%
84,227
95.8
%
710
10
3,676
3.7
%
203,412
94.7
%
681
6
2,530
2.9
%
161,019
94.4
%
726
3
444
0.4
%
24,142
92.1
%
758
2
435
2.0
%
108,846
0.5
%
25,147
260
75,223
100.0
%
$
5,568,300
94.3
%
$
857
(a) | Total Income per Occupied Home represents total revenues per weighted average number of apartment homes occupied. |
16
Operating Activities |
Investing Activities |
Acquisitions |
17
Capital Expenditures |
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||||||||
(Dollars in thousands) | (Per home) | ||||||||||||||||||||||||
2006 | 2005 | % Change | 2006 | 2005 | % Change | ||||||||||||||||||||
Turnover capital expenditures
|
$ | 2,991 | $ | 4,578 | -34.7 | % | $ | 40 | $ | 59 | -32.2 | % | |||||||||||||
Other recurring capital expenditures
|
1,724 | 3,715 | -53.6 | % | 23 | 48 | -52.1 | % | |||||||||||||||||
Total recurring capital expenditures
|
4,715 | 8,293 | -43.1 | % | 63 | 107 | -41.1 | % | |||||||||||||||||
Revenue enhancing improvements
|
34,524 | 16,715 | 106.5 | % | 466 | 215 | 116.7 | % | |||||||||||||||||
Major renovations
|
8,767 | 1,475 | 494.4 | % | 118 | 19 | 521.1 | % | |||||||||||||||||
Total capital improvements
|
$ | 48,006 | $ | 26,483 | 81.3 | % | $ | 647 | $ | 341 | 89.7 | % | |||||||||||||
Repair and maintenance
|
10,624 | 11,096 | -4.3 | % | 143 | 143 | 0.0 | % | |||||||||||||||||
Total expenditures
|
$ | 58,630 | $ | 37,579 | 56.0 | % | $ | 790 | $ | 484 | 63.2 | % | |||||||||||||
18
Real Estate Under Development |
Number of | Completed | Cost to | Budgeted | Estimated | Expected | ||||||||||||||||||||
Apartment | Apartment | Date | Cost | Cost | Completion | ||||||||||||||||||||
Homes | Homes | (In thousands) | (In thousands) | Per Home | Date | ||||||||||||||||||||
Verano at Town Square
|
|||||||||||||||||||||||||
Rancho Cucamonga, CA
|
414 | 264 | $ | 62,217 | $ | 66,300 | $ | 160,100 | 2Q06 | ||||||||||||||||
Mandalay on the Lake
|
|||||||||||||||||||||||||
Irving, TX
|
369 | 171 | 28,880 | 30,900 | 83,700 | 2Q06 | |||||||||||||||||||
2000 Post Phase III
|
|||||||||||||||||||||||||
San Francisco, CA
|
24 | | 6,481 | 9,000 | 375,000 | 3Q06 | |||||||||||||||||||
Ridgeview
|
|||||||||||||||||||||||||
Plano, TX
|
225 | | 8,209 | 18,000 | 80,000 | 1Q07 | |||||||||||||||||||
Lincoln Towne Square Phase II
|
|||||||||||||||||||||||||
Plano, TX
|
303 | | 3,059 | 21,000 | 69,300 | 3Q07 | |||||||||||||||||||
1,335 | 435 | $ | 108,846 | $ | 145,200 | $ | 108,800 | ||||||||||||||||||
Disposition of Investments |
Financing Activities |
| Repaid $1.0 million of secured debt and $24.8 million of unsecured debt. | |
| Authorized a new 10 million share repurchase program in February 2006. This program replaces our previous 11 million share program under which we repurchased approximately 10 million shares. |
19
Three Months Ended | Twelve Months Ended | |||||||
March 31, 2006 | December 31, 2005 | |||||||
Total revolving credit facility
|
$ | 500,000 | $ | 500,000 | ||||
Borrowings outstanding at end of period
|
284,200 | 210,800 | ||||||
Weighted average daily borrowings during the period
|
263,659 | 315,487 | ||||||
Maximum daily borrowings during the period
|
313,300 | 440,200 | ||||||
Weighted average interest rate during the period
|
4.8 | % | 3.6 | % | ||||
Weighted average interest rate at end of period
|
5.2 | % | 4.7 | % |
20
Three Months Ended | |||||||||
March 31, | |||||||||
2006 | 2005 | ||||||||
Net income
|
$ | 12,007 | $ | 14,941 | |||||
Adjustments:
|
|||||||||
Distributions to preferred stockholders
|
(3,842 | ) | (3,842 | ) | |||||
Real estate depreciation and amortization
|
57,397 | 48,566 | |||||||
Minority interests of unitholders in operating partnership
|
(468 | ) | 59 | ||||||
Real estate depreciation related to unconsolidated entities
|
| 62 | |||||||
Discontinued Operations:
|
|||||||||
Real estate depreciation
|
1,326 | 3,153 | |||||||
Minority interests of unitholders in operating partnership
|
1,001 | 632 | |||||||
Net gains on the sale of depreciable property
|
(15,347 | ) | (7,023 | ) | |||||
Net incremental gains on the sale of condominium homes
|
8,481 | 459 | |||||||
Funds from operations basic
|
$ | 60,555 | $ | 57,007 | |||||
Distributions to preferred stockholders
Series E (Convertible)
|
931 | 931 | |||||||
Funds from operations diluted
|
$ | 61,486 | $ | 57,938 | |||||
Weighted average number of common shares and OP Units
outstanding basic
|
142,342 | 144,586 | |||||||
Weighted average number of common shares, OP Units, and
common stock equivalents outstanding diluted
|
147,801 | 150,187 |
21
Three Months Ended | |||||||||
March 31, | |||||||||
2006 | 2005 | ||||||||
Weighted average number of common shares and OP units
outstanding basic
|
142,342 | 144,585 | |||||||
Weighted average number of OP units outstanding
|
(8,753 | ) | (8,518 | ) | |||||
Weighted average number of common shares outstanding
basic per the Consolidated Statements of Operations
|
133,589 | 136,067 | |||||||
Weighted average number of common shares, OP units, and common
stock equivalents outstanding diluted
|
147,801 | 150,186 | |||||||
Weighted average number of OP units outstanding
|
(8,753 | ) | (8,518 | ) | |||||
Weighted average incremental shares from assumed conversion of
stock options
|
(772 | ) | | ||||||
Weighted average incremental shares from unvested restricted
stock
|
(118 | ) | | ||||||
Weighted average number of Series A OPPSs outstanding
|
(1,765 | ) | (1,791 | ) | |||||
Weighted average number of Series E preferred shares
outstanding
|
(2,804 | ) | (2,804 | ) | |||||
Weighted average number of common shares outstanding
diluted per the Consolidated Statements of Operations
|
133,589 | 137,073 | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2006 | 2005 | |||||||
Net cash provided by operating activities
|
$ | 32,217 | $ | 50,370 | ||||
Net cash used in investing activities
|
(20,984 | ) | (71,228 | ) | ||||
Net cash provided by financing activities
|
9,560 | 14,615 |
Net Income Available to Common Stockholders |
22
| an $11.8 million decrease in non-property income, and | |
| an $7.0 million increase in real estate depreciation and amortization expense, and | |
| a $4.9 million increase in interest expense. |
Apartment Community Operations |
2006 | 2005 | % Change | ||||||||||
Property rental income
|
$ | 181,335 | $ | 174,981 | 3.6% | |||||||
Property operating expense*
|
(69,245 | ) | (67,226 | ) | 3.0% | |||||||
Property operating income
|
$ | 112,090 | $ | 107,755 | 4.0% | |||||||
Weighted average number of homes
|
75,115 | 78,006 | -3.7% | |||||||||
Physical occupancy**
|
94.3 | % | 94.1 | % | 0.2% |
* | Excludes depreciation, amortization, and property management expenses. |
** | Based upon weighted average stabilized homes. |
2006 | 2005 | ||||||||
Property operating income
|
$ | 112,090 | $ | 107,755 | |||||
Commercial operating income
|
88 | 87 | |||||||
Non-property income
|
1,178 | 12,932 | |||||||
Real estate depreciation and amortization
|
(59,435 | ) | (52,390 | ) | |||||
Interest
|
(44,094 | ) | (39,149 | ) | |||||
General and administrative and property management
|
(11,755 | ) | (11,813 | ) | |||||
Other operating expenses
|
(863 | ) | (290 | ) | |||||
Loss on early debt retirement
|
| (8,465 | ) | ||||||
Net gain on sale of depreciable property
|
15,347 | 7,023 | |||||||
Minority interests
|
(549 | ) | (749 | ) | |||||
Net income per the Consolidated Statements of Operations
|
$ | 12,007 | $ | 14,941 | |||||
Same Communities |
23
Non-Mature Communities |
24
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 4. | CONTROLS AND PROCEDURES |
25
| a reduction in jobs and other local economic downturns, | |
| declines in mortgage interest rates, making alternative housing more affordable, | |
| government or builder incentives which enable first time homebuyers to put little or no money down, making alternative housing decisions easier to make, | |
| oversupply of, or reduced demand for, apartment homes, | |
| declines in household formation, and | |
| rent control or stabilization laws, or other laws regulating rental housing, which could prevent us from raising rents to offset increases in operating costs. |
| an acquired community may fail to perform as we expected in analyzing our investment, or a significant exposure related to the acquired property may go undetected during our due diligence procedures, | |
| when we acquire an apartment community, we often invest additional amounts in it with the intention of increasing profitability. These additional investments may not produce the anticipated improvements in profitability, | |
| new developments may not achieve pro forma rents or occupancy levels, or problems with construction or local building codes may delay initial occupancy dates for all or a portion of a development community, and | |
| an over supply of condominiums in a given market may cause a decrease in the prices at which we expect to sell condominium properties. |
26
| the national and local economies, | |
| local real estate market conditions, such as an oversupply of apartment homes, | |
| tenants perceptions of the safety, convenience, and attractiveness of our communities and the neighborhoods where they are located, | |
| our ability to provide adequate management, maintenance and insurance, and | |
| rental expenses, including real estate taxes and utilities. |
27
| we may be unable to obtain, or face delays in obtaining, necessary zoning, land-use, building, occupancy and other required governmental permits and authorizations, which could result in increased development costs and could require us to abandon our activities entirely with respect to a project for which we are unable to obtain permits or authorizations, | |
| if we are unable to find joint venture partners to help fund the development of a community or otherwise obtain acceptable financing for the developments, our development capacity may be limited, | |
| we may abandon development opportunities that we have already begun to explore, and we may fail to recover expenses already incurred in connection with exploring such opportunities, | |
| we may be unable to complete construction and lease-up of a community on schedule, or incur development or construction costs that exceed our original estimates, and we may be unable to charge rents that would compensate for any increase in such costs, | |
| occupancy rates and rents at a newly developed community may fluctuate depending on a number of factors, including market and economic conditions, preventing us from meeting our profitability goals for that community, and | |
| when we sell to third parties homes or properties that we developed or renovated, we may be subject to warranty or construction defect claims that are uninsured or exceed the limits of our insurance. |
28
| inability to accurately evaluate local apartment market conditions and local economies, | |
| inability to obtain land for development or to identify appropriate acquisition opportunities, | |
| inability to hire and retain key personnel, and | |
| lack of familiarity with local governmental and permitting procedures. |
29
30
31
Item 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
32
Total Number
Maximum
of Shares
Number of
Purchased as
Shares that
Part of Publicly
May Yet Be
Total Number
Average
Announced
Purchased
of Shares
Price Per
Plans or
Under the Plans
Period
Purchased
Share
Programs
or Programs
1,180,737
0
N/A
0
1,180,737
0
N/A
0
10,000,000
0
N/A
0
10,000,000
0
N/A
0
10,000,000
Item 6. | EXHIBITS |
33
United Dominion Realty
Trust, Inc.
|
||
Date: May 10, 2006 |
/s/ Christopher D. Genry Executive Vice President Corporate Strategy and Chief Financial Officer |
|
Date: May 10, 2006 |
/s/
David L. Messenger
Vice President and Chief Accounting Officer |
34
Exhibit No.
Description
3
.1
Amendment No. 1 to Amended and Restated Bylaws
(incorporated by reference to Exhibit 3.2 to the
Companys Current Report on Form 8-K dated
February 9, 2006 and filed with the Commission on
February 15, 2006, Commission File No. 1-10524)
3
.2
Amended and Restated Bylaws (as amended through February 9,
2006)(incorporated by reference to Exhibit 3.02 to the
Companys Annual Report on Form 10-K for the year
ended December 31, 2005, Commission File No. 1-10524)
10
.1
Summary of 2006 Director Compensation (incorporated by
reference to Exhibit 10.1 to the Companys Current
Report on Form 8-K dated January 3, 2006 and filed
with the Commission on January 6, 2006, Commission File
No. 1-10524)
10
.2
Executive Compensation Summary (incorporated by reference to
Exhibit 10.1 to the Companys Current Report on
Form 8-K dated February 15, 2006 and filed with the
Commission on February 21, 2006, Commission File
No. 1-10524)
10
.3
Description of the Series D Out-Performance Program
(incorporated by reference to Exhibit 10.2 to the
Companys Current Report on Form 8-K dated
February 9, 2006 and filed with the Commission on
February 15, 2006, and Exhibit 10.1 to the
Companys Current Report on Form 8-K dated May 2,
2006 and filed with the Commission on May 8, 2006,
Commission File No. 1-10524)
10
.4
Amended and Restated Agreement of Limited Partnership of United
Dominion Realty, L.P. dated as of February 23, 2004
(incorporated by reference to Exhibit 10.23 to the
Companys Annual Report on Form 10-K for the year
ended December 31, 2003, Commission File No. 1-10524)
10
.5
First Amendment to the Amended and Restated Agreement of Limited
Partnership of United Dominion Realty, L.P. (incorporated by
reference to Exhibit 10.06 to the Companys Quarterly
Report on Form 10-Q for the quarter ended June 30,
2005, Commission File No. 1-10524)
10
.6
Second Amendment to the Amended and Restated Agreement of
Limited Partnership of United Dominion Realty, L.P.
10
.7
Description of the New Out-Performance Program (incorporated by
reference to Exhibit 10.01 to the Companys Current
Report on Form 8-K dated May 3, 2005 and filed with
the Commission on May 9, 2005, Commission File
No. 1-10524)
12
Computation of Ratio of Earnings to Fixed Charges
31
.1
Rule 13a-14(a) Certification of the Chief Executive Officer
31
.2
Rule 13a-14(a) Certification of the Chief Financial Officer
32
.1
Section 1350 Certification of the Chief Executive Officer
32
.2
Section 1350 Certification of the Chief Financial Officer
UNITED DOMINION REALTY TRUST, INC.
|
||||
By: | /s/ Mary Ellen Norwood | |||
Mary Ellen Norwood | ||||
Vice President - Legal Administration | ||||
F-1
F-2
F-3
F-4
F-5
F-6
F-7
Three Months Ended
March 31,
2006
2005
$
(3,352
)
$
4,789
44,094
38,572
6,644
(452
)
117
168
165
$
40,458
$
50,287
$
44,094
$
38,572
6,644
835
410
168
165
45,097
45,791
3,842
3,842
$
48,939
$
49,633
1.10
x
1.01
x
Date: May 10, 2006 | /s/Thomas W. Toomey | |||
Thomas W. Toomey | ||||
Chief Executive Officer and President | ||||
Date: May 10, 2006 | /s/ Christopher D. Genry | |||
Christopher D. Genry | ||||
Executive Vice President Corporate Strategy and Chief Financial Officer | ||||
Date: May 10, 2006 | /s/ Thomas W. Toomey | |||
Thomas W. Toomey | ||||
Chief Executive Officer and President | ||||
Date: May 10, 2006 | /s/ Christopher D. Genry | |||
Christopher D. Genry | ||||
Executive Vice President Corporate Strategy and Chief Financial Officer | ||||