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): December 17, 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 5. OTHER EVENTS
On December 17, 2001, United Dominion Realty Trust, Inc. ("United Dominion"),
the registrant, issued a Press Release announcing the closing of a $400 million
Fannie Mae credit facility. The following is a summary of United Dominion Realty
Trust, Inc.'s Press Release:
UNITED DOMINION REALTY TRUST CLOSES ON $400 MILLION FANNIE MAE
REVOLVING CREDIT FACILITY
RICHMOND, Virginia (December 17, 2001) United Dominion Realty Trust, Inc. (NYSE:
UDR) announced that it closed on a $400 Million Fannie Mae Revolving Credit
Facility through ARCS Commercial Mortgage Co., LP. The Facility provides for an
initial term of 10 years with an option by the Company to extend the term an
additional five years at the then market rate. The Company has the option of
variable or fixed rate tranches. As of December 13, 2001, the Facilities fixed
rate would have been approximately 6.57% and the variable rate would have been
approximately 2.40%. As of December 13, 2001, the weighted average interest rate
on the loans being refinanced was approximately 7.89%.
The Facility will be funded over the next several months and will be used for
the refinancing of existing secured debt on approximately 30 properties. The
weighted average maturity on the loans being refinanced is 3.4 years. Certain of
the loans are subject to prepayment penalties which the Company expects to range
from approximately $20 million to $24 million in the aggregate, depending on
interest rates at the time of refinancing, and which will result in one time
charges to earnings that will be added back in calculating funds from
operations. The Company estimates, based on certain assumptions as to the timing
of the refinancings and underlying interest rates, that the positive net present
value of the refinancings will range from approximately $20 million to $25
million.
"With interest rates at the lowest levels in forty years, we saw an opportunity
to refinance a significant portion of our secured loans in a manner that
increased earnings, improved our Fixed Charge Coverage Ratio and extended
maturity schedules thereby mitigating refinancing risks in the next several
years," cited Ella S. Neyland, Executive Vice President.
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 76,000 apartment
homes and is the developer for over 800 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.
------------
In addition to historical information, this press release 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, 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.
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: December 17, 2001 /s/ Christopher D. Genry
---------------------- ------------------------
Christopher D. Genry
Executive Vice President and
Chief Financial Officer
Date: December 17, 2001 /s/ Scott A. Shanaberger
---------------------- ------------------------
Scott A. Shanaberger
Vice President and
Chief Accounting Officer