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): October 1, 1996




                         SOUTH WEST PROPERTY TRUST INC.
             (Exact name of registrant as specified in its charter)


                                    Maryland
                 (State or Other Jurisdiction of Incorporation)

              1-11224                                    2434995
      (Commission File Number)           (I.R.S. Employer Identification Number)


               5949 Sherry Lane
                  Suite 1400
                Dallas, Texas                         75225
(Address of Principal Executive Offices)            (Zip Code)


        Registrant's telephone number, including area code: (214)369-1995


<PAGE>



Item 5. Other Events

     On October 1, 1996, South West Property Trust Inc. (the "Company")  entered
into an  agreement  of merger with  United  Dominion  Realty  Trust  ("UDR"),  a
Virginia-based real estate investment trust.  Pursuant to the agreement and plan
of  merger,  the  Company  would  merge  with  and  into  UDR  in  exchange  for
approximately   $312  million  of  UDR  common  stock   (subject  to  -  certain
conditions),   which  would  be  distributed  to  the  Company's   stockholders.
Consummation  of the  transaction  is subject to certain  conditions,  including
completion of certain due diligence procedures,  and shareholder  approval.  The
press release announcing the merger is attached hereto as Exhibit 99.1.


Item 7. Financial Statements and Exhibits.

            (c) Exhibits

             99.1     Press Release dated October 1, 1996.





<PAGE>





                                   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.

                                               SOUTH WEST PROPERTY TRUST INC.



                                               By:    /s/   Lewis H. Sandler
                                                      ----------------------
                                                      Lewis H. Sandler
                                                      Executive Vice President,
                                                      Secretary and
                                                      General Counsel


DATE:      October 2, 1996.






<PAGE>





                                 EXHIBIT INDEX

                                                                   Sequentially
Exhibit                                                              Numbered
Number                           Descriptions                          Page
------                           ------------                          ----


  99.1                     Press Release dated October 1, 1996




<PAGE>


                         South West Property Trust Inc.


                5949 Sherry Lane, Suite 1400 Dallas, Texas 75225
                            (214) 369-1995 Fax (214)369-6882
                          

                              FOR IMMEDIATE RELEASE
                                October 1, 1996


           UNITED DOMINION REALTY TRUST AND SOUTH WEST PROPERTY TRUST
                            ANNOUNCE MERGER AGREEMENT


United  Dominion Realty Trust,  Inc.  (NYSE:  UDR) and South West Property Trust
Inc.  (NYSE:  SWP) today  announced  the  execution  of a  definitive  Agreement
pursuant to which South West would be merged into United  Dominion.  The merger,
which was unanimously  approved by both Boards of Directors,  will combine South
West's 14,975  apartment  homes  (including its development  portfolio),  80% of
which  are in  Texas,  with  United  Dominion's  41,004  apartment  homes in the
Southeast.

Following  the  merger,  United  Dominion,  with 55,979  apartment  homes in 210
communities, will be the largest REIT developer, owner and manager of apartments
in the southeastern and southwestern United States.

Based upon the closing  stock price of United  Dominion on  September  30, 1996,
shareholders  of South West would receive  approximately  $312 million of United
Dominion Common Stock.

Under the terms of the Agreement, each share of South West will be exchanged for
1.0833 shares of United Dominion provided that United Dominion's average closing
price  during the pricing  period is $13 7/8 or higher.  If the average  closing
price is less than $13 7/8, then the exchange  rate will be adjusted  upwards to
provide a $15 value for each South West  share.  This  exchange  ration  assures
South West  shareholders  that their current  dividend rate will not be reduced.
United Dominion is not required to offer more than 1.1215 shares, and South West
is not  required to accept less than $15 per share in value.  The  Agreement  is
subject to completion of due diligence by both parties,  regulatory approval and
approval by both companies' shareholders.

The merger has been structured as a tax-free  transaction and will be treated as
a purchase for  accounting  purposes.  The merger is expected to be effective at
the close of business on December 31, 1996.

Three of South West's executive officers, John S. Schneider,  Chairman and Chief
Executive Officer, Robert F. Sherman,  President and Chief Operating Officer and
David Johnston,  Executive Vice President and Chief Investment Officer will join
United  Dominion  as  executive  officers.  Mr.  Schneider,  along  with Mark J.
Sandler, Robert W. Scharar and Ira T. Wender (currently Directors of South West)
will join United Dominion's Board of Directors.

John  Schneider,  South West's CEO,  stated that the merged  companies  span the
southeastern  and  southwestern  United  States,  two of the most vibrant growth
areas  of  the  country.   They  bring  together  United  Dominion's   extensive
acquisition  expertise and South West's  proven  development  capabilities.  The
combined  Company,  with over two  billion  dollars in assets  should  also have
greater  access to lower cost  capital.  Consequently,  South West's  management
believes that this merger creates an unique  opportunity for its shareholders to
participate in the consolidation and growth of the REIT industry.

Mr. Schneider  further stated that United Dominion and South West have each been
in the apartment business since 1973 and the combination will bring together one
of the  strongest and most  experienced  management  teams in the  industry.  In
addition,  the  merger  should  provide  opportunities  to  realize  significant
administrative  cost  savings  which are  expected to have a positive  effect on
shareholder value.

John  McCann,  United  Dominion's  CEO stated that the merger  provides  several
important strategic and operational benefits for United Dominion:

The apartment sector is rapidly consolidating,  permitting dominant companies to
realize  enhanced  access to capital from a variety of sources at lower cost. We
have  participated  in this  consolidation  in a substantial  way in the private
transaction   sector  since  1991.   This  major   transaction  is  our  initial
participation  in the  consolidation  of public  companies.  We are very excited
about what this merger does for the Company, its shareholders and our future.

The merger should be accretive immediately to funds from operations per share.

More than $300 million will be added to our equity market  capitalization  which
should provide  increased  liquidity in our common stock.  The addition of South
West's more than $500 million of apartment  homes  should  provide  economies of
scale in our overall operations.

About 80% of South West's  apartments  are located in Texas.  This  represents a
logical expansion of our geography and gives us instant critical size in Dallas,
a long-term growth market.

South West has developed  successfully in multiple markets in both the Southeast
and Southwest. They bring to us an enhanced development capability, knowledge of
the Southwest, markets and management depth.

The expanded geography and greater development  capabilities,  will provide more
investment opportunities which should increase return on new investment.
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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): October 1, 1996

                         SOUTH WEST PROPERTY TRUST INC.
             (Exact name of registrant as specified in its charter)

                                    Maryland
                 (State or Other Jurisdiction of Incorporation)

              1-11224                                    2434995
      (Commission File Number)           (I.R.S. Employer Identification Number)

               5949 Sherry Lane
                  Suite 1400
                Dallas, Texas                         75225
(Address of Principal Executive Offices)            (Zip Code)

        Registrant's telephone number, including area code: (214)369-1995
Item 5. Other Events

     On October 1, 1996, South West Property Trust Inc. (the "Company")  entered
into an  agreement  of merger with  United  Dominion  Realty  Trust  ("UDR"),  a
Virginia-based real estate investment trust.  Pursuant to the agreement and plan
of  merger,  the  Company  would  merge  with  and  into  UDR  in  exchange  for
approximately   $312  million  of  UDR  common  stock   (subject  to  -  certain
conditions),   which  would  be  distributed  to  the  Company's   stockholders.
Consummation  of the  transaction  is subject to certain  conditions,  including
completion of certain due diligence procedures,  and shareholder  approval.  The
press release announcing the merger is attached hereto as Exhibit 99.1.

Item 7. Financial Statements and Exhibits.

            (c) Exhibits

             99.1     Press Release dated October 1, 1996.
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.

                                               SOUTH WEST PROPERTY TRUST INC.

                                               By:    /s/   Lewis H. Sandler
                                                      ----------------------
                                                      Lewis H. Sandler
                                                      Executive Vice President,
                                                      Secretary and
                                                      General Counsel

DATE:      October 2, 1996.
EXHIBIT INDEX

                                                                   Sequentially
Exhibit                                                              Numbered
Number                           Descriptions                          Page
------                           ------------                          ----

  99.1                     Press Release dated October 1, 1996
South West Property Trust Inc.

                5949 Sherry Lane, Suite 1400 Dallas, Texas 75225
                            (214) 369-1995 Fax (214)369-6882
                          

                              FOR IMMEDIATE RELEASE
                                October 1, 1996

           UNITED DOMINION REALTY TRUST AND SOUTH WEST PROPERTY TRUST
                            ANNOUNCE MERGER AGREEMENT

United  Dominion Realty Trust,  Inc.  (NYSE:  UDR) and South West Property Trust
Inc.  (NYSE:  SWP) today  announced  the  execution  of a  definitive  Agreement
pursuant to which South West would be merged into United  Dominion.  The merger,
which was unanimously  approved by both Boards of Directors,  will combine South
West's 14,975  apartment  homes  (including its development  portfolio),  80% of
which  are in  Texas,  with  United  Dominion's  41,004  apartment  homes in the
Southeast.

Following  the  merger,  United  Dominion,  with 55,979  apartment  homes in 210
communities, will be the largest REIT developer, owner and manager of apartments
in the southeastern and southwestern United States.

Based upon the closing  stock price of United  Dominion on  September  30, 1996,
shareholders  of South West would receive  approximately  $312 million of United
Dominion Common Stock.

Under the terms of the Agreement, each share of South West will be exchanged for
1.0833 shares of United Dominion provided that United Dominion's average closing
price  during the pricing  period is $13 7/8 or higher.  If the average  closing
price is less than $13 7/8, then the exchange  rate will be adjusted  upwards to
provide a $15 value for each South West  share.  This  exchange  ration  assures
South West  shareholders  that their current  dividend rate will not be reduced.
United Dominion is not required to offer more than 1.1215 shares, and South West
is not  required to accept less than $15 per share in value.  The  Agreement  is
subject to completion of due diligence by both parties,  regulatory approval and
approval by both companies' shareholders.

The merger has been structured as a tax-free  transaction and will be treated as
a purchase for  accounting  purposes.  The merger is expected to be effective at
the close of business on December 31, 1996.

Three of South West's executive officers, John S. Schneider,  Chairman and Chief
Executive Officer, Robert F. Sherman,  President and Chief Operating Officer and
David Johnston,  Executive Vice President and Chief Investment Officer will join
United  Dominion  as  executive  officers.  Mr.  Schneider,  along  with Mark J.
Sandler, Robert W. Scharar and Ira T. Wender (currently Directors of South West)
will join United Dominion's Board of Directors.

John  Schneider,  South West's CEO,  stated that the merged  companies  span the
southeastern  and  southwestern  United  States,  two of the most vibrant growth
areas  of  the  country.   They  bring  together  United  Dominion's   extensive
acquisition  expertise and South West's  proven  development  capabilities.  The
combined  Company,  with over two  billion  dollars in assets  should  also have
greater  access to lower cost  capital.  Consequently,  South West's  management
believes that this merger creates an unique  opportunity for its shareholders to
participate in the consolidation and growth of the REIT industry.

Mr. Schneider  further stated that United Dominion and South West have each been
in the apartment business since 1973 and the combination will bring together one
of the  strongest and most  experienced  management  teams in the  industry.  In
addition,  the  merger  should  provide  opportunities  to  realize  significant
administrative  cost  savings  which are  expected to have a positive  effect on
shareholder value.

John  McCann,  United  Dominion's  CEO stated that the merger  provides  several
important strategic and operational benefits for United Dominion:

The apartment sector is rapidly consolidating,  permitting dominant companies to
realize  enhanced  access to capital from a variety of sources at lower cost. We
have  participated  in this  consolidation  in a substantial  way in the private
transaction   sector  since  1991.   This  major   transaction  is  our  initial
participation  in the  consolidation  of public  companies.  We are very excited
about what this merger does for the Company, its shareholders and our future.

The merger should be accretive immediately to funds from operations per share.

More than $300 million will be added to our equity market  capitalization  which
should provide  increased  liquidity in our common stock.  The addition of South
West's more than $500 million of apartment  homes  should  provide  economies of
scale in our overall operations.

About 80% of South West's  apartments  are located in Texas.  This  represents a
logical expansion of our geography and gives us instant critical size in Dallas,
a long-term growth market.

South West has developed  successfully in multiple markets in both the Southeast
and Southwest. They bring to us an enhanced development capability, knowledge of
the Southwest, markets and management depth.

The expanded geography and greater development  capabilities,  will provide more
investment opportunities which should increase return on new investment.