Washington Real Estate Investment Trust (WRE, Financial) filed Quarterly Report for the period ended 2009-03-31.
WASHINGTON R.E. INV. TRUST is a self-administered qualified equity real estate investment trust. The Trust's business consists of the ownership of income-producing real estate properties principally in the Greater Washington-Baltimore Region. The Trust has a fundamental strategy of regional focus diversified property type ownership and conservative financial management. Washington Real Estate Investment Trust has a market cap of $1.17 billion; its shares were traded at around $22.01 with a P/E ratio of 9.4 and P/S ratio of 4.1. The dividend yield of Washington Real Estate Investment Trust stocks is 7.9%. Washington Real Estate Investment Trust had an annual average earning growth of 7.2% over the past 10 years. GuruFocus rated Washington Real Estate Investment Trust the business predictability rank of 3.5-star.
Minimum Base Rent: Minimum base rent increased by $6.7 million in the 2009 Quarter as compared to the 2008 Quarter due primarily to non-core properties ($6.6 million), combined with a $0.1 million increase in minimum base rent from core properties due to higher rental rates in all segments, offset by higher vacancy in all segments.
Recoveries from Tenants: Recoveries from tenants increased by $2.7 million in the 2009 Quarter as compared to the 2008 Quarter due primarily to non-core properties ($1.7 million), combined with a $1.0 million increase in recoveries from tenants from core properties primarily due to higher utilities reimbursements ($0.4 million), real estate tax reimbursements ($0.3 million) and common area maintenance reimbursements ($0.3 million).
Property operating expenses increased $3.1 million in the 2009 Quarter as compared to the 2008 Quarter due primarily to non-core properties ($1.8 million), combined with a $1.3 million increase in property operating expenses from core properties driven by higher utilities costs ($0.6 million), common area maintenance costs ($0.4 million) and bad debt write-offs ($0.2 million).
Real Estate Taxes: Real estate taxes increased $1.6 million in the 2009 Quarter as compared to the 2008 Quarter due to the non-core properties ($1.0 million), combined with a ($0.6 million) increase in real estate taxes from core properties due primarily to higher rates and assessments across the portfolio.
Interest Expense: Interest expense increased $0.8 million in the 2009 Quarter compared to the 2008 Quarter, reflecting a $0.6 million decrease in capitalized interest due to placing development projects into service at the end of 2007 and during 2008. Also, mortgage interest increased by $3.1 million due to entering into a new mortgage note during the 2009 Quarter and three new mortgage notes during the second quarter of 2008, as well as assuming a mortgage as part of the 2445 M Street acquisition in the fourth quarter of 2008. These increases were offset by lower interest on the unsecured line of credit ($2.3 million) due to paydowns during 2008 and lower interest on notes payable due to paydowns on the convertible notes during 2008 and the 2009 Quarter. The proceeds of the new mortgage notes were used to pay down floating rate credit facility debt and to repurchase a portion of the convertible notes.
Read the The complete ReportWRE is in the portfolios of Tom Gayner of Markel Gayner Asset Management Corp.
WASHINGTON R.E. INV. TRUST is a self-administered qualified equity real estate investment trust. The Trust's business consists of the ownership of income-producing real estate properties principally in the Greater Washington-Baltimore Region. The Trust has a fundamental strategy of regional focus diversified property type ownership and conservative financial management. Washington Real Estate Investment Trust has a market cap of $1.17 billion; its shares were traded at around $22.01 with a P/E ratio of 9.4 and P/S ratio of 4.1. The dividend yield of Washington Real Estate Investment Trust stocks is 7.9%. Washington Real Estate Investment Trust had an annual average earning growth of 7.2% over the past 10 years. GuruFocus rated Washington Real Estate Investment Trust the business predictability rank of 3.5-star.
Highlight of Business Operations:
including capitalizing interest and other internal costs during periods in which qualifying expenditures have been made and activities necessary to get the development projects ready for their intended use are in progress. In addition, we capitalize tenant leasehold improvements when certain criteria are met, including when we supervise construction and will own the improvements. We depreciate all tenant improvements over the shorter of the useful life of the improvements or the term of the related tenant lease. Real estate depreciation expense from continuing operations was $18.8 million for the 2009 Quarter and $16.6 million for the 2008 Quarter. Maintenance and repair costs that do not extend an assets life are charged to expense as incurred.Minimum Base Rent: Minimum base rent increased by $6.7 million in the 2009 Quarter as compared to the 2008 Quarter due primarily to non-core properties ($6.6 million), combined with a $0.1 million increase in minimum base rent from core properties due to higher rental rates in all segments, offset by higher vacancy in all segments.
Recoveries from Tenants: Recoveries from tenants increased by $2.7 million in the 2009 Quarter as compared to the 2008 Quarter due primarily to non-core properties ($1.7 million), combined with a $1.0 million increase in recoveries from tenants from core properties primarily due to higher utilities reimbursements ($0.4 million), real estate tax reimbursements ($0.3 million) and common area maintenance reimbursements ($0.3 million).
Property operating expenses increased $3.1 million in the 2009 Quarter as compared to the 2008 Quarter due primarily to non-core properties ($1.8 million), combined with a $1.3 million increase in property operating expenses from core properties driven by higher utilities costs ($0.6 million), common area maintenance costs ($0.4 million) and bad debt write-offs ($0.2 million).
Real Estate Taxes: Real estate taxes increased $1.6 million in the 2009 Quarter as compared to the 2008 Quarter due to the non-core properties ($1.0 million), combined with a ($0.6 million) increase in real estate taxes from core properties due primarily to higher rates and assessments across the portfolio.
Interest Expense: Interest expense increased $0.8 million in the 2009 Quarter compared to the 2008 Quarter, reflecting a $0.6 million decrease in capitalized interest due to placing development projects into service at the end of 2007 and during 2008. Also, mortgage interest increased by $3.1 million due to entering into a new mortgage note during the 2009 Quarter and three new mortgage notes during the second quarter of 2008, as well as assuming a mortgage as part of the 2445 M Street acquisition in the fourth quarter of 2008. These increases were offset by lower interest on the unsecured line of credit ($2.3 million) due to paydowns during 2008 and lower interest on notes payable due to paydowns on the convertible notes during 2008 and the 2009 Quarter. The proceeds of the new mortgage notes were used to pay down floating rate credit facility debt and to repurchase a portion of the convertible notes.
Read the The complete ReportWRE is in the portfolios of Tom Gayner of Markel Gayner Asset Management Corp.
