Washington Real Estate Investment Trust (WRE) Bundle
A Brief History of Washington Real Estate Investment Trust (WRE)
Formation and Early Years
Formation and Early Years
Washington Real Estate Investment Trust (WRE) was established in 1960 as a real estate investment trust, making it the first publicly traded REIT in the United States. The company focuses on properties located in the Washington D.C. metropolitan area.
Development and Growth
Over the decades, WRE has expanded its portfolio significantly. As of December 31, 2022, WRE owned 37 properties, comprising approximately 8.5 million square feet of commercial space. The total asset value stood at around $3.4 billion.
Property Portfolio
| Property Type | Number of Properties | Square Footage | Location |
|---|---|---|---|
| Office | 23 | 6,234,000 | Washington D.C., Virginia, Maryland |
| Retail | 10 | 1,256,000 | Washington D.C., Virginia, Maryland |
| Residential | 4 | 1,020,000 | Washington D.C., Virginia, Maryland |
Financial Performance
WRE's financial performance has shown resilience over the years. For the fiscal year ended December 31, 2022, the company reported:
- Total revenue: $310 million
- Net income: $45 million
- Funds from operations (FFO): $150 million
- Dividend per share: $1.20
Market Capitalization
As of October 2023, WRE's market capitalization is approximately $1.4 billion. The stock price has fluctuated over the past year, reaching a high of $30.05 and a low of $24.45.
Acquisitions and Dispositions
WRE has strategically acquired and disposed of properties to optimize its portfolio. In 2022, the company acquired two office properties for a total of $150 million and sold one retail property for $25 million.
Challenges and Opportunities
The COVID-19 pandemic presented challenges, particularly in the office sector, leading to an increased focus on flexible workspaces. As of 2023, WRE has adopted strategies to enhance tenant experiences, including improved amenities and flexible leasing options.
Sustainability Initiatives
WRE is committed to sustainability and has implemented various green initiatives across its properties. The company aims to reduce carbon emissions by 30% by 2030, investing in energy-efficient systems and sustainable building materials.
Outlook
The outlook for WRE remains cautiously optimistic. Analysts predict a potential growth in rental income as the market stabilizes post-pandemic, with estimated revenue growth of 5% annually over the next five years.
A Who Owns Washington Real Estate Investment Trust (WRE)
Ownership Structure
Washington Real Estate Investment Trust (WRE) is a publicly traded real estate investment trust (REIT) that focuses on investing in and managing multifamily and commercial properties primarily in the Washington, D.C. metropolitan area. As of the latest available data, the ownership structure is comprised of institutional investors, individual shareholders, and company executives.
Major Institutional Shareholders
The following table outlines the major institutional shareholders of WRE:
| Institution Name | Percentage of Ownership (%) | Number of Shares Owned |
|---|---|---|
| Vanguard Group, Inc. | 13.5 | 5,761,841 |
| BlackRock, Inc. | 10.2 | 4,382,500 |
| State Street Corporation | 8.9 | 3,711,985 |
| Wellington Management Company, LLP | 5.7 | 2,395,000 |
| Invesco Ltd. | 5.4 | 2,153,700 |
Individual Shareholders
Among individual shareholders, notable figures include:
- Paul A. McGowan, CEO - approximately 1.2% ownership
- Margaret D. McGowan, Director - approximately 0.5% ownership
- Gregory B. Smith, CFO - approximately 0.3% ownership
Executive Compensation
The compensation for the top executives in the company is as follows:
| Executive Name | Title | Total Compensation (in USD) |
|---|---|---|
| Paul A. McGowan | CEO | 1,350,000 |
| Gregory B. Smith | CFO | 720,000 |
| Margaret D. McGowan | Director | 450,000 |
| Laura J. Martin | Chief Operating Officer | 600,000 |
| John R. Smith | Chief Investment Officer | 800,000 |
Market Capitalization
As of the latest market data, Washington Real Estate Investment Trust has the following financial metrics:
- Market Capitalization: 1.2 billion USD
- Annual Revenue: 300 million USD
- Net Income: 45 million USD
- Funds from Operations (FFO): 135 million USD
Stock Performance
The stock performance is a significant aspect of ownership dynamics:
- Current Stock Price: 25.50 USD
- 52-Week High: 27.00 USD
- 52-Week Low: 23.00 USD
- Dividend Yield: 4.5%
Geographical Ownership Distribution
The following table illustrates the geographical distribution of WRE's properties:
| Location | Number of Properties | Percentage of Total Portfolio (%) |
|---|---|---|
| Washington, D.C. | 30 | 60 |
| Maryland | 15 | 25 |
| Virginia | 10 | 15 |
Washington Real Estate Investment Trust (WRE) Mission Statement
Core Mission
The mission of Washington Real Estate Investment Trust (WRE) is to enhance the living and working environments of the communities it serves through the acquisition, development, and management of high-quality real estate assets in the Washington, D.C. metropolitan area.
Vision and Values
WRE's vision is to create enduring value for its shareholders and stakeholders, focusing on sustainability and innovative real estate solutions. Core values include:
- Integrity: Upholding the highest ethical standards in all operations.
- Excellence: Striving for excellence and quality in every aspect of business.
- Collaboration: Fostering teamwork and collaboration among employees and partners.
- Sustainability: Commitment to sustainable and responsible real estate practices.
Financial Overview
As of December 31, 2022, WRE reported the following financial performance metrics:
| Metric | 2022 Amount | 2021 Amount |
|---|---|---|
| Total Revenue | $130.2 million | $124.1 million |
| Net Income | $20.5 million | $18.3 million |
| Funds From Operations (FFO) | $68.3 million | $65.0 million |
| Assets Under Management | $2.5 billion | $2.4 billion |
| Market Capitalization | $1.1 billion | $950 million |
Investment Strategy
WRE's investment strategy is focused on:
- Acquiring and developing properties in high-demand submarkets of the Washington, D.C. area.
- Enhancing portfolio performance through active asset management.
- Maintaining a diversified portfolio across different property types including residential, retail, and office spaces.
Community Commitment
WRE is committed to community engagement through various initiatives such as:
- Providing affordable housing options.
- Engaging in local philanthropic efforts.
- Participating in sustainable urban development projects.
Recent Acquisitions
In 2022, WRE successfully acquired several key properties which include:
| Property Name | Acquisition Date | Location | Purchase Price |
|---|---|---|---|
| The Lux on Capitol Hill | January 2022 | Washington, D.C. | $60 million |
| Courthouse Plaza | March 2022 | Arlington, VA | $80 million |
| Forest Glen Apartments | July 2022 | Silver Spring, MD | $30 million |
Performance Metrics
WRE maintains key performance indicators to measure its operational success, which includes:
| KPI | 2022 Results | 2021 Results |
|---|---|---|
| Occupancy Rate | 92.5% | 90.8% |
| Average Rental Rate | $2,450/month | $2,400/month |
| Tenant Retention Rate | 85% | 82% |
How Washington Real Estate Investment Trust (WRE) Works
Operational Overview
Washington Real Estate Investment Trust (WRE) operates as a self-managed real estate investment trust (REIT). The company primarily invests in and manages income-producing properties across the Washington, D.C. metropolitan area. WRE focuses on sectors like multifamily, office, and retail properties, ensuring a diversified portfolio.
Financial Performance
As of Q3 2023, WRE reported a total revenue of $175 million, reflecting a year-over-year increase of 5%. The net income attributable to common shareholders stood at $32 million for the same period.
Key financial metrics include:
| Metric | Q3 2023 | Q3 2022 | Change (%) |
|---|---|---|---|
| Total Revenue | $175 million | $166 million | +5% |
| Net Income | $32 million | $30 million | +6.67% |
| Funds from Operations (FFO) | $41 million | $38 million | +7.89% |
| Debt to Equity Ratio | 1.5 | 1.6 | -6.25% |
| Dividend per Share | $0.35 | $0.34 | +2.94% |
Portfolio Composition
As of September 30, 2023, WRE’s investment portfolio comprised 45 properties totaling approximately 8.5 million square feet. The portfolio was broken down as follows:
| Property Type | Number of Properties | Total Square Feet | Percentage of Portfolio (%) |
|---|---|---|---|
| Multifamily | 18 | 4.5 million | 52.94 |
| Office | 22 | 3.0 million | 35.29 |
| Retail | 5 | 1.0 million | 11.76 |
Market Conditions
WRE operates in a competitive real estate market in the D.C. area, characterized by high demand for residential and commercial spaces. The multifamily segment, particularly, has demonstrated strong rental growth, with an average rental increase of approximately 3.5% for 2023.
Investment Strategy
WRE targets properties with potential for appreciation and strong cash flows. The company employs a disciplined acquisition strategy focusing on:
- High-quality assets in strategic locations
- Value-add opportunities through renovations and repositioning
- Long-term leases with creditworthy tenants
Tenant Mix
The company maintains a diversified tenant base across its properties, minimizing risks associated with vacancies. The top five tenants contributed approximately 30% of total rental income. Key tenants include:
| Tenant | Sector | Percentage of Total Rental Income (%) |
|---|---|---|
| Tenant A | Government | 10 |
| Tenant B | Technology | 8 |
| Tenant C | Retail | 6 |
| Tenant D | Healthcare | 4 |
| Tenant E | Education | 2 |
Future Outlook
WRE aims for continued growth through strategic acquisitions and development opportunities. The management expects the multifamily sector to remain robust due to ongoing demand, with projected rental growth of 4% over the next year.
How Washington Real Estate Investment Trust (WRE) Makes Money
Revenue Sources
Revenue Sources
Washington Real Estate Investment Trust (WRE) generates income through various categories:
- Rental Income: This accounts for the majority of WRE's revenues, primarily from leasing office, retail, and multifamily properties.
- Property Management Fees: WRE also earns fees by managing properties for third parties, increasing operational income.
- Asset Sales: The company occasionally sells assets to realize capital gains, enhancing revenue.
Portfolio Overview
As of the latest report in 2023, WRE's portfolio includes:
| Property Type | Number of Properties | Square Footage | Occupancy Rate |
|---|---|---|---|
| Commercial Office | 16 | 3,500,000 sq. ft. | 89% |
| Multifamily | 12 | 2,900 units | 95% |
| Retail | 5 | 550,000 sq. ft. | 85% |
Financial Performance
WRE's financials demonstrate its revenue-generating capabilities:
| Metric | Q2 2023 | Q2 2022 |
|---|---|---|
| Total Revenue | $65.8 million | $61.2 million |
| Net Income | $12.6 million | $10.4 million |
| Funds from Operations (FFO) | $15.2 million | $13.5 million |
Dividend Payments
WRE maintains a strong commitment to returning capital to shareholders through dividends:
- Annual Dividend Yield: 4.5% as of 2023.
- Quarterly Dividend Rate: $0.30 per share.
- Dividend Payout Ratio: Approximately 70% of FFO.
Growth Strategies
WRE employs several strategies to boost its income:
- Acquisitions: Targeting underperforming assets for strategic acquisition.
- Development Projects: Investing in ground-up developments to expand the portfolio.
- Sustainability Initiatives: Enhancing property values through green certifications and upgrades.
Market Position
WRE's position in the market is reflected by key metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $1.3 billion |
| Total Assets | $2.4 billion |
| Debt to Equity Ratio | 1.2 |
Regional Focus
WRE primarily operates in the following markets:
- Washington D.C. Area: Major focus due to stable demand and high rental rates.
- Suburban Maryland: Investment in multifamily and commercial properties.
- Northern Virginia: Growing market with a surge in tech companies.
Washington Real Estate Investment Trust (WRE) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support