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Press Release

United Dominion Realty Trust Tax Status of 2004 Reportable Distributions

Company Release - 1/14/2005 4:10 PM ET

RICHMOND, Va.--(BUSINESS WIRE)--Jan. 14, 2005--United Dominion Realty Trust, Inc. (NYSE: UDR) reported today the tax status of its 2004 reportable distributions made to shareholders. The classifications of the distributions are as follows:

          ---------------------Portion Designated As------------------

                        Ordinary           Long- Unrecaptured Return
Payment   Distribution  Taxable  Qualified Term    Section      of
 Date      Per Share    Dividend Ordinary  Gain   1250 Gain   Capital
----------------------------------------------------------------------

Common Shares:
--------------

02/02/2004     $0.2850     65.92%    0.00% 17.26%       6.54%   10.28%

04/30/2004     $0.2925     65.92%    0.00% 17.26%       6.54%   10.28%

08/02/2004     $0.2925     65.92%    0.00% 17.26%       6.54%   10.28%

11/01/2004     $0.2925     65.92%    0.00% 17.26%       6.54%   10.28%
          ------------
Total          $1.1625

Preferred Shares Series B:
--------------------------

03/01/2004     $0.5375     76.20%    0.00% 17.26%       6.54%    0.00%

06/01/2004     $0.5375     76.20%    0.00% 17.26%       6.54%    0.00%

08/31/2004     $0.5375     76.20%    0.00% 17.26%       6.54%    0.00%

11/30/2004     $0.5375     76.20%    0.00% 17.26%       6.54%    0.00%
          ------------
Total          $2.1500

Shareholders of record of UDR's common or preferred stock will receive an Internal Revenue Service Form 1099-DIV from Wells Fargo Shareowner Services, the Company's 2004 dividend paying agent. The form will report the distributions paid and designated as total ordinary dividends, qualified dividends, total capital gains, unrecaptured section 1250 gains, and nontaxable distributions. If shares were held in "street name" during 2004, the IRS form will be provided by a bank, brokerage firm, or nominee.

State taxation of REIT distributions vary, and may not be the same as federal taxation. Because federal and state tax laws affect individuals differently, the Company cannot advise shareholders on how distributions should be reported on their tax returns.

United Dominion is the fourth largest apartment REIT, owning and operating apartment communities nationwide. The Company has a 32-year history during which it has raised the dividend each of the last 28 years. United Dominion is included in the S&P MidCap 400 Index. The Company currently owns 78,855 apartment homes and is the developer of 1,311 homes currently under development. Additional information about United Dominion may be found on its Web site at www.udrt.com.


    CONTACT: United Dominion Realty Trust, Inc.

             Larry Thede, 720-283-2450
             E-mail: ir@udrt.com
             www.udrt.com

    SOURCE: United Dominion Realty Trust, Inc.