Despite the slowing real estate market, Washington Real Estate Trust said funds from operations rose modestly - a penny a share - to 59 cents in the first quarter, within the range expected by analysts.
The Rockville-based real estate investment trust said per share FFO (funds from operations), the main financial measure for REITs, included an 18 cents nonrecurring charge in February for effectively refinancing $60 million in debt at 6.74 percent with a $100 million, two-year loan at a fixed rate of 4.45 percent. The company estimates the new loan will save $5.6 million in the first two years.
Without the charge, WRIT posted FFO of 41 cents a share, compared to 58 cents a year ago. Overall FFO totaled $18.2 million, compared to $24.5 million in the first quarter a year ago.
The company, which owns office, industrial and retail properties in the D.C. area, posted a loss of nearly $1.5 million, or 3 cents a share, compared to earnings of $10.7 million a year ago. It reported revenue from rental income of $70.3 million, up from $59.9 million in the year-ago period.
Skip McKenzie, president and chief executive officer of WRIT, said the company's major exposure with the slowing market is at Dulles Station, a 180,000-square-foot office building it completed in the first quarter on the Dulles Toll Road. The building does not have any tenants yet.
Company officials said they are seeing signs of the slowdown, with longer lease-up periods. Still, the company's core portfolio is 95 percent occupied, and rents grew nearly 3 percent in the first quarter.
WRIT's stock (NYSE: WRE) was up about $1.50 in late afternoon trading.
The Rockville-based real estate investment trust said per share FFO (funds from operations), the main financial measure for REITs, included an 18 cents nonrecurring charge in February for effectively refinancing $60 million in debt at 6.74 percent with a $100 million, two-year loan at a fixed rate of 4.45 percent. The company estimates the new loan will save $5.6 million in the first two years.
Without the charge, WRIT posted FFO of 41 cents a share, compared to 58 cents a year ago. Overall FFO totaled $18.2 million, compared to $24.5 million in the first quarter a year ago.
The company, which owns office, industrial and retail properties in the D.C. area, posted a loss of nearly $1.5 million, or 3 cents a share, compared to earnings of $10.7 million a year ago. It reported revenue from rental income of $70.3 million, up from $59.9 million in the year-ago period.
Skip McKenzie, president and chief executive officer of WRIT, said the company's major exposure with the slowing market is at Dulles Station, a 180,000-square-foot office building it completed in the first quarter on the Dulles Toll Road. The building does not have any tenants yet.
Company officials said they are seeing signs of the slowdown, with longer lease-up periods. Still, the company's core portfolio is 95 percent occupied, and rents grew nearly 3 percent in the first quarter.
WRIT's stock (NYSE: WRE) was up about $1.50 in late afternoon trading.
Source: Bizjournals
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