UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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): September 28, 2004
UNITED DOMINION REALTY TRUST, INC.
Maryland | 1-10524 | 54-0857512 | ||
(State or other jurisdiction of | (Commission File Number) | (I.R.S. Employer | ||
incorporation) | Identification No.) |
1745 Shea Center Drive, Suite 200, Highlands Ranch, Colorado | 80129 | |
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: (720) 283-6120
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 8.01. Other Events.
As of September 28, 2004, United Dominion Realty Trust, Inc. (the Company), through its subsidiary, United Dominion Realty, L.P., a Delaware partnership, has during the 2004 fiscal year acquired or proposed to acquire various apartment communities located in Maryland, Tennessee, California and Oregon, for a total purchase price of approximately $850 million. These apartment communities include Arborview, Calverts Walk and Liriope, located in Maryland, The Preserve at Brentwood, located in Tennessee, and apartment communities located in California and Oregon to be acquired from Essex Apartment Value Fund, an affiliate of Essex Property Trust, Inc. (the Essex Properties). Accordingly, the Company is hereby filing certain financial information indicated under Rule 3-14 and Article 11 of Regulation S-X relating to the properties known as Arborview, Calverts Walk, Liriope, The Preserve at Brentwood and ten of the sixteen Essex Properties.
ITEM 9.01. Financial Statements and Exhibits.
(a) Financial Statements of Real Estate Operations Acquired.
Arborview, Calverts Walk and Liriope:
Report of Independent Registered Public Accounting Firm
Combined Statement of Revenue and Certain Expenses for the year ended December 31, 2003
The Preserve at Brentwood:
Report of Independent Registered Public Accounting Firm
Statements of Revenue and Certain Expenses for the year ended December 31, 2003 (audited) and for the three-month period ended March 31, 2004 (unaudited)
The Essex Properties:
Report of Independent Registered Public Accounting Firm
Combined Statements of Revenue and Certain Expenses for the year ended December 31, 2003 (audited) and for the six-month period ended June 30, 2004 (unaudited)
(b) Pro Forma Financial Information.
Pro Forma Condensed Consolidated Balance Sheet as of June 30, 2004 (unaudited)
Pro Forma Condensed Consolidated Statements of Operations for the six-month period ended June 30, 2004 (unaudited) and for the year ended December 31, 2003 (unaudited)
1
(c) Exhibits.
Exhibit | ||||
Number |
Description |
|||
2.1
|
Agreement of Purchase and Sale dated as of August 13, 2004, by and between United Dominion Realty, L.P., a Delaware limited partnership, as Buyer, and Essex The Crest, L.P., a California limited partnership, Essex El Encanto Apartments, L.P., a California limited partnership, Essex Hunt Club Apartments, L.P., a California limited partnership, and the other signatories named as Sellers therein. | |||
23.1
|
Consent of Ernst & Young LLP |
2
SIGNATURES
Pursuant to the requirements of the Securities 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. |
||||
By: | /s/ CHRISTOPHER D. GENRY | |||
Christopher D. Genry | ||||
Executive Vice President and Chief Financial Officer | ||||
Date: September 28, 2004
3
Report of Independent Registered Public Accounting Firm
The Board of Directors
United Dominion Realty Trust, Inc.
We have audited the accompanying combined statement of revenue and certain expenses of Arborview, Calverts Walk and Liriope (the Communities) for the year ended December 31, 2003. This combined statement is the responsibility of the management of the Communities. Our responsibility is to express an opinion on this combined statement based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the combined statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall combined statement presentation. We believe that our audit provides a reasonable basis for our opinion.
The accompanying combined statement was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission for inclusion in a Current Report on Form 8-K of United Dominion Realty Trust, Inc., as described in Note 1, and is not intended to be a complete presentation of the Communities revenue and expenses.
In our opinion, the combined statement referred to above presents fairly, in all material respects, the revenue and certain expenses of Arborview, Calverts Walk and Liriope for the year ended December 31, 2003, in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP |
Richmond, Virginia
March 26, 2004
4
ARBORVIEW, CALVERTS WALK AND LIRIOPE
Combined Statement of Revenue and Certain Expenses
Year ended December 31, 2003
Rental and other property income |
$ | 6,766,553 | ||
Rental expenses: |
||||
Personnel |
600,961 | |||
Utilities |
129,870 | |||
Repairs and maintenance |
496,423 | |||
Administrative and marketing |
249,259 | |||
Real estate taxes and insurance |
648,649 | |||
Total rental expenses |
2,125,162 | |||
Revenue in excess of certain expenses |
$ | 4,641,391 | ||
See accompanying notes.
5
ARBORVIEW, CALVERTS WALK AND LIRIOPE
Notes to Combined Statement of Revenue and Certain Expenses
1. Basis of Presentation
On December 3, 2003, a subsidiary of United Dominion Realty Trust, Inc. entered into an agreement to purchase Arborview, Calverts Walk and Liriope (the Communities) from Berkshire Realty Holdings, L.P.
The combined statement of revenue and certain expenses relate to the operations of the Communities and was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission, including Rule 3-14 of Regulation S-X. Accordingly, the accompanying combined statement of revenue and certain expenses has been prepared using the accrual method of accounting, and certain expenses such as depreciation, amortization, income taxes, mortgage interest expense and entity expenses are not reflected in the combined statement of revenue and certain expenses, as required by Rule 3-14 of Regulation S-X of the Securities and Exchange Commission. Consequently, the combined statement of revenue and certain expenses for the period presented is not representative of the actual operations for the period presented, as certain revenues and expenses which may not be in the proposed future operations of the Communities have been excluded in accordance with Rule 3-14 of Regulation S-X.
The Communities consist of the following properties:
Number of | ||||||
Property Name |
Units |
Location |
||||
Arborview
|
288 | Belcamp, MD | ||||
Calverts Walk
|
276 | Belair, MD | ||||
Liriope
|
84 | Belcamp, MD |
2. Summary of Significant Accounting Policies
Revenue Recognition
The apartment homes are leased under operating leases with terms of generally one year or less. Rental income is recognized as it is earned, which is not materially different than on a straight-line basis.
6
2. Summary of Significant Accounting Policies (continued)
Repairs and Maintenance
Repairs and maintenance costs are expensed as incurred, while significant improvements, renovations and replacements are capitalized.
Estimates
The preparation of the combined statement in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
7
Report of Independent Registered Public Accounting Firm
The Board of Directors
United Dominion Realty Trust, Inc.
We have audited the accompanying statement of revenue and certain expenses of The Preserve at Brentwood (the Community) for the year ended December 31, 2003. This statement is the responsibility of the management of the Community. Our responsibility is to express an opinion on this statement based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion.
The accompanying statement was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission for inclusion in a Current Report on Form 8-K of United Dominion Realty Trust, Inc., as described in Note 1, and is not intended to be a complete presentation of the Communitys revenue and expenses.
In our opinion, the statement referred to above presents fairly, in all material respects, the revenue and certain expenses of The Preserve at Brentwood for the year ended December 31, 2003, in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP |
Richmond, Virginia
May 26, 2004
8
THE PRESERVE AT BRENTWOOD
Statements of Revenue and Certain Expenses
Three-month | ||||||||
period ended | ||||||||
Year ended | March 31, | |||||||
December 31, | 2004 | |||||||
2003 |
(unaudited) |
|||||||
Rental and other property income |
$ | 3,231,009 | $ | 828,719 | ||||
Rental expenses: |
||||||||
Personnel |
343,474 | 94,302 | ||||||
Utilities |
130,898 | 23,653 | ||||||
Repairs and maintenance |
257,802 | 47,179 | ||||||
Management fees |
127,661 | 33,028 | ||||||
Administrative and marketing |
169,062 | 27,363 | ||||||
Real estate taxes and insurance |
461,828 | 115,407 | ||||||
Total rental expenses |
1,490,725 | 340,932 | ||||||
Revenue in excess of certain expenses |
$ | 1,740,284 | $ | 487,787 | ||||
See accompanying notes.
9
THE PRESERVE AT BRENTWOOD
Notes to Statements of Revenue and Certain Expenses
1. Basis of Presentation
On April 19, 2004, a subsidiary of United Dominion Realty Trust, Inc. entered into an agreement to purchase The Preserve at Brentwood (the Community) from SEA Brentwood LLC.
The statements of revenue and certain expenses relate to the operations of the Community and were prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission, including Rule 3-14 of Regulation S-X. Accordingly, the accompanying statements of revenue and certain expenses have been prepared using the accrual method of accounting, and certain expenses such as depreciation, amortization, income taxes, mortgage interest expense and entity expenses are not reflected in the statements of revenue and certain expenses, as required by Rule 3-14 of Regulation S-X of the Securities and Exchange Commission. Consequently, the statements of revenue and certain expenses for the periods presented are not representative of the actual operations for the periods presented, as certain revenues and expenses which may not be in the proposed future operations of the Community have been excluded in accordance with Rule 3-14 of Regulation S-X.
The accompanying unaudited interim statement of revenue and certain expenses has been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and was prepared on the same basis as the statement of revenue and certain expenses for the year ended December 31, 2003. In the opinion of management of the Community, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of the information for this interim period have been made. The revenue in excess of certain expenses for such interim period is not necessarily indicative of the excess of revenue over certain expenses for the full year.
The Community consists of the following:
Number of | ||||||
Property Name |
Units |
Location |
||||
The Preserve at Brentwood
|
360 | Nashville, TN |
10
2. Summary of Significant Accounting Policies
Revenue Recognition
The apartment homes are leased under operating leases with terms of generally one year or less. Rental income is recognized as it is earned, which is not materially different than on a straight-line basis.
Repairs and Maintenance
Repairs and maintenance costs are expensed as incurred, while significant improvements, renovations and replacements are capitalized.
Estimates
The preparation of the statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Advertising Costs
All advertising costs are expensed as incurred and reported on the statements of revenue and certain expenses within the line item Administrative and marketing. For the year ended December 31, 2003 and for the three-month period ended March 31, 2004, advertising expenses were $98,208 and $13,398, respectively.
3. Related Party Transactions
Affiliates of the Community performed the property management function and charged total management fees of 4% of rental income for this service for 2003 and the three-month period ended March 31, 2004. Management fees in the amount of $127,661 and $33,028 were charged to the Community during 2003 and the three-month period ended March 31, 2004, respectively.
11
Report of Independent Registered Public Accounting Firm
The Board of Directors
United Dominion Realty Trust, Inc.
We have audited the accompanying combined statement of revenue and certain expenses of The Essex Properties (the Properties) for the year ended December 31, 2003. This combined statement is the responsibility of the management of the Properties. Our responsibility is to express an opinion on this combined statement based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the combined statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall combined statement presentation. We believe that our audit provides a reasonable basis for our opinion.
The accompanying combined statement was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission for inclusion in a Current Report on Form 8-K of United Dominion Realty Trust, Inc., as described in Note 1, and is not intended to be a complete presentation of the Properties revenue and expenses.
In our opinion, the combined statement referred to above presents fairly, in all material respects, the revenue and certain expenses of The Essex Properties for the year ended December 31, 2003, in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP |
Richmond, Virginia
September 24, 2004
12
THE ESSEX PROPERTIES
Combined Statements of Revenue and Certain Expenses
Six-month | ||||||||
Year ended | period ended | |||||||
December 31, | June 30, 2004 | |||||||
2003 |
(unaudited) |
|||||||
Rental and other property income |
$ | 31,638,653 | $ | 16,272,821 | ||||
Rental expenses: |
||||||||
Personnel |
3,086,692 | 1,594,998 | ||||||
Utilities |
1,603,302 | 769,051 | ||||||
Repairs and maintenance |
1,169,249 | 501,166 | ||||||
Administrative and marketing |
1,186,852 | 582,300 | ||||||
Property management |
950,246 | 480,941 | ||||||
Real estate taxes and insurance |
3,470,584 | 1,782,907 | ||||||
Total rental expenses |
11,466,925 | 5,711,363 | ||||||
Revenue in excess of certain expenses |
$ | 20,171,728 | $ | 10,561,458 | ||||
See accompanying notes.
13
THE ESSEX PROPERTIES
Notes to Combined Statements of Revenue and Certain Expenses
1. Basis of Presentation
On August 13, 2004, a subsidiary of United Dominion Realty Trust, Inc. entered into an agreement to acquire The Essex Properties (the Properties) from certain affiliates of Essex Property Trust (Essex).
The combined statements of revenue and certain expenses relate to the operations of the Properties and were prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission, including Rule 3-14 of Regulation S-X. Accordingly, the accompanying combined statements of revenue and certain expenses have been prepared using the accrual method of accounting, and certain expenses such as depreciation, amortization, income taxes, mortgage interest expense and entity expenses are not reflected in the combined statements of revenue and certain expenses, as required by Rule 3-14 of Regulation S-X of the Securities and Exchange Commission. Consequently, the combined statements of revenue and certain expenses for the periods presented are not representative of the actual operations for the periods presented, as certain revenues and expenses which may not be in the proposed future operations of the Properties have been excluded in accordance with Rule 3-14 of Regulation S-X.
The accompanying unaudited interim combined statement of revenue and certain expenses has been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and was prepared on the same basis as the combined statement of revenue and certain expenses for the year ended December 31, 2003. In the opinion of management of the Properties, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of the information for this interim period have been made. The revenue in excess of certain expenses for such interim period is not necessarily indicative of the excess of revenue over certain expenses for the full year.
14
1. Basis of Presentation (continued)
The Properties are comprised of the following:
Number | ||||||
Property Name |
of Units |
Location |
||||
Andover Park
|
240 | Beaverton, OR | ||||
The Hunt Club
|
256 | Lake Oswego, OR | ||||
Ocean Villas
|
119 | Oxnard, CA | ||||
The Crest at Phillips Ranch
|
501 | Pomona, CA | ||||
Rosebeach
|
174 | La Miranda, CA | ||||
Foxborough
|
90 | Orange, CA | ||||
The Arboretum at Lake Forest
|
225 | Lake Forest, CA | ||||
Vista Del Rey
|
116 | Tustin, CA | ||||
The Villas at Carlsbad
|
102 | Carlsbad, CA | ||||
Coronado North
|
732 | Newport Beach, CA |
2. Summary of Significant Accounting Policies
Revenue Recognition
The apartment homes are leased under operating leases with terms of generally one year or less. Rental income is recognized as it is earned, which is not materially different than on a straight-line basis.
Repairs and Maintenance
Repairs and maintenance costs are expensed as incurred, while significant improvements, renovations and replacements are capitalized.
Estimates
The preparation of the combined statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
15
2. Summary of Significant Accounting Policies (continued)
Advertising Costs
All advertising costs are expensed as incurred and reported on the statement of revenue and certain expenses within the line item Administrative and marketing. For the year ended December 31, 2003 and for the six-month period ended June 30, 2004, advertising expenses were approximately $589,000 and $251,000, respectively.
3. Related Party Transactions
An affiliate of Essex performed the property management function and charged total management fees of 3% of rental and other property income for this service for 2003 and the six-month period ended June 30, 2004. Management fees in the amount of $950,246 and $480,941 were charged to the Properties during 2003 and the six-month period ended June 30, 2004, respectively.
16
Pro Forma Condensed Consolidated Balance Sheet
The accompanying unaudited Pro Forma Condensed Consolidated Balance Sheet of United Dominion Realty Trust, Inc. (the Company) is presented as if Arborview, Calverts Walk, Liriope, The Preserve at Brentwood and The Essex Properties had been acquired on June 30, 2004. This Pro Forma Condensed Consolidated Balance Sheet should be read in conjunction with the Pro Forma Condensed Consolidated Statement of Operations for the six-month period ended June 30, 2004 and for the year ended December 31, 2003 and the historical consolidated financial statements and notes thereto of the Company reported on Form 10-Q for the six-month period ended June 30, 2004 and on Form 10-K for the year ended December 31, 2003, as updated on Form 8-K dated August 20, 2004. In managements opinion, all adjustments necessary to reflect the acquisition of Arborview, Calverts Walk, Liriope, The Preserve at Brentwood and The Essex Properties have been made. The following Pro Forma Condensed Consolidated Balance Sheet is not necessarily indicative of what the actual financial position would have been assuming the above transaction had been consummated at June 30, 2004, nor does it purport to represent the future financial position of the Company.
17
UNITED DOMINION REALTY TRUST, INC.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
JUNE 30, 2004
(UNAUDITED AND IN THOUSANDS)
HISTORICAL | PRO FORMA | PRO FORMA | ||||||||||
AMOUNTS (A) |
ADJUSTMENTS (B) |
AMOUNTS |
||||||||||
Assets |
||||||||||||
Real estate investments, net |
$ | 3,532,509 | $ | 371,150 | $ | 3,903,659 | ||||||
Cash and cash equivalents |
7,117 | | 7,117 | |||||||||
Deferred financing costs, net |
21,131 | | 21,131 | |||||||||
Notes receivable |
44,586 | | 44,586 | |||||||||
Other assets |
35,629 | 2,100 | 37,729 | |||||||||
Total assets |
$ | 3,640,972 | $ | 373,250 | $ | 4,014,222 | ||||||
Liabilities and Stockholders Equity |
||||||||||||
Secured debt |
$ | 999,658 | $ | 159,959 | $ | 1,159,617 | ||||||
Unsecured debt |
1,267,650 | 213,291 | 1,480,941 | |||||||||
Accrued expenses and other liabilities |
113,100 | | 113,100 | |||||||||
Distributions payable |
41,782 | | 41,782 | |||||||||
Total liabilities |
2,422,190 | 373,250 | 2,795,440 | |||||||||
Minority interests |
89,813 | | 89,813 | |||||||||
Preferred stock Series B |
135,400 | | 135,400 | |||||||||
Preferred stock Series D |
47,396 | | 47,396 | |||||||||
Preferred stock Series E |
56,893 | | 56,893 | |||||||||
Common Stock |
127,771 | | 127,771 | |||||||||
Other equity |
761,509 | | 761,509 | |||||||||
Total stockholders equity |
1,128,969 | | 1,128,969 | |||||||||
Total liabilities and stockholders equity |
$ | 3,640,972 | $ | 373,250 | $ | 4,014,222 | ||||||
See accompanying notes.
Notes to Pro Forma Condensed Consolidated Balance Sheet
(A) | Represents the condensed consolidated balance sheet of the Company as of June 30, 2004, as contained in the historical consolidated financial statements and notes thereto filed on Form 10-Q. This includes the completed acquisition of Arborview, Calverts Walk, Liriope and The Preserve at Brentwood. These properties were purchased during the six-month period ended June 30, 2004 for a total purchase price of $94.3 million. These acquisitions were funded through draws under the Companys line of credit facility. | |||
(B) | Represents the proposed acquisition of the Essex Properties for a total purchase price of $373.3 million of which $2.1 million has been preliminarily allocated to the acquisition of in-place leases. |
18
Pro Forma Condensed Consolidated Statements of Operations
The accompanying unaudited Pro Forma Condensed Consolidated Statements of Operations for the six-month period ended June 30, 2004 and for the year ended December 31, 2003 of the Company is presented as if Arborview, Calverts Walk, Liriope, The Preserve at Brentwood and the Essex Properties (collectively, the Properties) had been acquired on January 1, 2003.
These Pro Forma Condensed Consolidated Statements of Operations should be read in conjunction with the historical consolidated financial statements included in the Companys previous filings with the Securities and Exchange Commission.
The unaudited Pro Forma Condensed Consolidated Statements of Operations are not necessarily indicative of what the actual results of operations would have been for the six-month period ended June 30, 2004 or for the year ended December 31, 2003 assuming the above transactions had been consummated on January 1, 2003, nor do they purport to represent the future results of operations of the Company.
19
UNITED DOMINION REALTY TRUST, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004
(UNAUDITED AND IN THOUSANDS, EXCEPT PER-SHARE DATA)
HISTORICAL | PRO FORMA | PRO FORMA | ||||||||||
AMOUNTS (A) |
ADJUSTMENTS (B) |
AMOUNTS |
||||||||||
Revenues |
||||||||||||
Rental income |
$ | 309,745 | $ | 19,346 | $ | 329,091 | ||||||
Non-property income |
1,406 | | 1,406 | |||||||||
Total revenues |
311,151 | 19,346 | 330,497 | |||||||||
Expenses |
||||||||||||
Real estate taxes and insurance |
37,788 | 2,137 | 39,925 | |||||||||
Personnel |
32,210 | 1,902 | 34,112 | |||||||||
Utilities |
19,123 | 841 | 19,964 | |||||||||
Repair and maintenance |
19,498 | 704 | 20,202 | |||||||||
Administrative and marketing |
11,075 | 690 | 11,765 | |||||||||
Property management |
8,751 | | 8,751 | |||||||||
Other operating expenses |
561 | | 561 | |||||||||
Depreciation and amortization |
84,474 | 9,067 | 93,541 | |||||||||
Interest |
58,201 | 6,162 | 64,363 | |||||||||
General and administrative |
9,381 | | 9,381 | |||||||||
Other expenses |
1,783 | | 1,783 | |||||||||
Total expenses |
282,845 | 21,503 | 304,348 | |||||||||
Income before allocation to minority interests and
discontinued operations |
28,306 | (2,157 | ) | 26,149 | ||||||||
Minority interests of outside partnerships |
(115 | ) | | (115 | ) | |||||||
Minority interests of unitholders in operating
partnerships |
(955 | ) | 137 | (818 | ) | |||||||
Income from continuing operations, net of minority
interests |
27,236 | (2,020 | ) | 25,216 | ||||||||
Distributions to preferred stockholders |
(10,178 | ) | | (10,178 | ) | |||||||
Premium on preferred share conversion |
(3,125 | ) | | (3,125 | ) | |||||||
Income/(loss) from continuing operations available to
common stockholders |
$ | 13,933 | $ | (2,020 | ) | $ | 11,913 | |||||
Income/(loss) from continuing operations available to
common stockholders basic and diluted |
$ | 0.11 | $ | (0.02 | ) | $ | 0.09 | |||||
Weighted
average number of common shares outstanding basic |
127,057 | 127,057 | 127,057 | |||||||||
Weighted
average number of common shares outstanding diluted |
127,996 | 127,057 | 127,996 | |||||||||
See accompanying notes.
20
UNITED DOMINION REALTY TRUST, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2003
(UNAUDITED AND IN THOUSANDS, EXCEPT PER-SHARE DATA)
HISTORICAL | PRO FORMA | PRO FORMA | ||||||||||
AMOUNTS (A) |
ADJUSTMENTS (C) |
AMOUNTS |
||||||||||
Revenues |
||||||||||||
Rental income |
$ | 581,617 | $ | 41,636 | $ | 623,253 | ||||||
Non-property income |
1,068 | | 1,068 | |||||||||
Total revenues |
582,685 | 41,636 | 624,321 | |||||||||
Expenses |
||||||||||||
Real estate taxes and insurance |
66,585 | 4,581 | 71,166 | |||||||||
Personnel |
59,419 | 4,031 | 63,450 | |||||||||
Utilities |
34,873 | 1,864 | 36,737 | |||||||||
Repair and maintenance |
37,585 | 1,923 | 39,508 | |||||||||
Administrative and marketing |
21,582 | 1,605 | 23,187 | |||||||||
Property management |
16,873 | | 16,873 | |||||||||
Other operating expenses |
1,205 | | 1,205 | |||||||||
Depreciation and amortization |
155,216 | 22,718 | 177,934 | |||||||||
Interest |
117,416 | 12,851 | 130,267 | |||||||||
General and administrative |
20,626 | | 20,626 | |||||||||
Other expenses |
4,576 | | 4,576 | |||||||||
Total expenses |
535,956 | 49,573 | 585,529 | |||||||||
Income/(loss) before allocation to minority interests and
discontinued operations |
46,729 | (7,937 | ) | 38,792 | ||||||||
Minority interests of outside partnerships |
(614 | ) | | (614 | ) | |||||||
Minority interests of unitholders in operating
partnerships |
5 | 506 | 511 | |||||||||
Income/(loss) from discontinued operations, net of minority
interests |
46,120 | (7,431 | ) | 38,689 | ||||||||
Distributions to preferred stockholders |
(26,326 | ) | | (26,326 | ) | |||||||
Premium on preferred share conversion |
(19,271 | ) | | (19,271 | ) | |||||||
Income/(loss) from continuing operations available to
common stockholders |
$ | 523 | $ | (7,431 | ) | $ | (6,908 | ) | ||||
Income/(loss) from continuing operations available to
common stockholders basic and diluted |
$ | 0.00 | $ | (0.06 | ) | $ | (0.06 | ) | ||||
Weighted average number of common shares outstanding
basic |
114,672 | 114,672 | 114,672 | |||||||||
Weighted average number of common shares outstanding
diluted |
115,648 | 114,672 | 114,672 | |||||||||
See accompanying notes.
21
Notes to Pro Forma Condensed Consolidated Statements of Operations
(A) | Represents the historical consolidated statement of operations of the Company as contained in the historical consolidated financial statements included in previous filings with the Securities and Exchange Commission. | |||
(B) | Represents the pro forma revenues and expenses for the six months ended June 30, 2004 attributable to the Properties as if the acquisitions had occurred on January 1, 2003. Interest expense of $6.2 million includes pro forma interest of $4.2 million attributable to new mortgage loans payable and $2.0 million attributable to draws under the line of credit to fund these acquisitions. | |||
(C) | Represents the pro forma revenues and expenses for the year ended December 31, 2003 attributable to the Properties as if the acquisitions had occurred on January 1, 2003. Interest expense of $12.9 million includes pro forma interest of $8.4 million attributable to new mortgage loans payable and $4.5 million attributable to draws under the line of credit to fund these acquisitions. Depreciation and amortization expense of $177.9 million includes pro forma amortization expense of $2.6 million attributed to the acquisition of in-place leases. Depreciation relates to the aggregate purchase price of $467.6 million less a preliminary allocation to land of $123.9 million. |
22
EXHIBIT INDEX
Exhibit | ||||
Number |
Description |
|||
2.1
|
Agreement of Purchase and Sale dated as of August 13, 2004, by and between United Dominion Realty, L.P., a Delaware limited partnership, as Buyer, and Essex The Crest, L.P., a California limited partnership, Essex El Encanto Apartments, L.P., a California limited partnership, Essex Hunt Club Apartments, L.P., a California limited partnership, and the other signatories named as Sellers therein. | |||
23.1
|
Consent of Ernst & Young LLP |