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Press Release

United Dominion Realty Trust Reports Tax Status of 2005 Dividends

Company Release - 1/13/2006 10:49 AM ET

RICHMOND, Va.--(BUSINESS WIRE)--Jan. 13, 2006--United Dominion Realty Trust, Inc. , (NYSE: UDR) reported today the tax status of its 2005 dividends paid 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:
--------------

01/31/2005   $0.2925    53.15%     0.00%    18.79%   10.41%     17.65%
05/05/2005   $0.3000    53.15%     0.00%    18.79%   10.41%     17.65%
08/01/2005   $0.3000    53.15%     0.00%    18.79%   10.41%     17.65%
10/31/2005   $0.3000    53.15%     0.00%    18.79%   10.41%     17.65%
             -------
Total        $1.1925

Preferred Shares Series B:
--------------------------
02/28/2005   $0.5375    64.55%     0.00%    22.82%   12.63%      0.00%
05/31/2005   $0.5375    64.55%     0.00%    22.82%   12.63%      0.00%
08/31/2005   $0.5375    64.55%     0.00%    22.82%   12.63%      0.00%
11/30/2005   $0.5375    64.55%     0.00%    22.82%   12.63%      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 2005 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 2005, 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.

About United Dominion Realty Trust, Inc.

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 29 years. United Dominion is included in the S&P MidCap 400 Index. The Company currently owns 74,954 apartment homes and has 1,335 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
             ir@udrt.com
             www.udrt.com

    SOURCE: United Dominion Realty Trust, Inc.