![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Washington REIT | NYSE:WRE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 17.57 | 0 | 01:00:00 |
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|
WASHINGTON REAL ESTATE INVESTMENT TRUST
|
(Exact name of registrant as specified in its charter)
|
Maryland
|
|
53-0261100
|
(State of incorporation)
|
|
(IRS Employer Identification Number)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Shares of Beneficial Interest
|
WRE
|
NYSE
|
Large Accelerated Filer
|
☒
|
Accelerated Filer
|
☐
|
Non-accelerated Filer
|
☐
|
Smaller Reporting Company
|
☐
|
|
|
Emerging Growth Company
|
☐
|
|
|
|
Page
|
|
||
|
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Unaudited)
|
|
|||||
Assets
|
|
|
|
||||
Land
|
$
|
574,025
|
|
|
$
|
566,807
|
|
Income producing property
|
2,444,525
|
|
|
2,392,415
|
|
||
|
3,018,550
|
|
|
2,959,222
|
|
||
Accumulated depreciation and amortization
|
(719,446
|
)
|
|
(693,610
|
)
|
||
Net income producing property
|
2,299,104
|
|
|
2,265,612
|
|
||
Properties under development or held for future development
|
89,791
|
|
|
124,193
|
|
||
Total real estate held for investment, net
|
2,388,895
|
|
|
2,389,805
|
|
||
Investment in real estate held for sale, net
|
57,028
|
|
|
57,028
|
|
||
Cash and cash equivalents
|
20,601
|
|
|
12,939
|
|
||
Restricted cash
|
634
|
|
|
1,812
|
|
||
Rents and other receivables
|
64,617
|
|
|
65,259
|
|
||
Prepaid expenses and other assets
|
84,722
|
|
|
95,149
|
|
||
Other assets related to properties held for sale
|
6,123
|
|
|
6,336
|
|
||
Total assets
|
$
|
2,622,620
|
|
|
$
|
2,628,328
|
|
Liabilities
|
|
|
|
||||
Notes payable, net
|
$
|
997,075
|
|
|
$
|
996,722
|
|
Mortgage notes payable, net
|
—
|
|
|
47,074
|
|
||
Line of credit
|
148,000
|
|
|
56,000
|
|
||
Accounts payable and other liabilities
|
98,966
|
|
|
71,136
|
|
||
Dividend payable
|
—
|
|
|
24,668
|
|
||
Advance rents
|
8,681
|
|
|
9,353
|
|
||
Tenant security deposits
|
10,875
|
|
|
10,595
|
|
||
Other liabilities related to properties held for sale
|
875
|
|
|
718
|
|
||
Total liabilities
|
1,264,472
|
|
|
1,216,266
|
|
||
Equity
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
||||
Preferred shares; $0.01 par value; 10,000 shares authorized; no shares issued or outstanding
|
—
|
|
|
—
|
|
||
Shares of beneficial interest, $0.01 par value; 100,000 shares authorized; 82,315 and 82,099 shares issued and outstanding, as of March 31, 2020 and December 31, 2019, respectively
|
823
|
|
|
821
|
|
||
Additional paid in capital
|
1,596,242
|
|
|
1,592,487
|
|
||
Distributions in excess of net income
|
(206,506
|
)
|
|
(183,405
|
)
|
||
Accumulated other comprehensive (loss) income
|
(32,744
|
)
|
|
1,823
|
|
||
Total shareholders’ equity
|
1,357,815
|
|
|
1,411,726
|
|
||
Noncontrolling interests in subsidiaries
|
333
|
|
|
336
|
|
||
Total equity
|
1,358,148
|
|
|
1,412,062
|
|
||
Total liabilities and equity
|
$
|
2,622,620
|
|
|
$
|
2,628,328
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Revenue
|
|
|
|
||||
Real estate rental revenue
|
$
|
76,792
|
|
|
$
|
71,434
|
|
Expenses
|
|
|
|
||||
Real estate expenses
|
28,639
|
|
|
26,143
|
|
||
Depreciation and amortization
|
29,720
|
|
|
27,057
|
|
||
General and administrative expenses
|
6,337
|
|
|
7,807
|
|
||
Real estate impairment
|
—
|
|
|
8,374
|
|
||
|
64,696
|
|
|
69,381
|
|
||
Real estate operating income
|
12,096
|
|
|
2,053
|
|
||
Other expense
|
|
|
|
||||
Interest expense
|
(10,845
|
)
|
|
(12,496
|
)
|
||
Gain on extinguishment of debt
|
468
|
|
|
—
|
|
||
|
(10,377
|
)
|
|
(12,496
|
)
|
||
Income (loss) from continuing operations
|
1,719
|
|
|
(10,443
|
)
|
||
Discontinued operations:
|
|
|
|
||||
Income from operations of properties sold or held for sale
|
—
|
|
|
6,038
|
|
||
Net income (loss)
|
1,719
|
|
|
(4,405
|
)
|
||
Less: Net income attributable to noncontrolling interests in subsidiaries
|
—
|
|
|
—
|
|
||
Net income (loss) attributable to the controlling interests
|
$
|
1,719
|
|
|
$
|
(4,405
|
)
|
|
|
|
|
||||
Basic net income (loss) attributable to the controlling interests per share:
|
|
|
|
||||
Continuing operations
|
$
|
0.02
|
|
|
$
|
(0.13
|
)
|
Discontinued operations
|
—
|
|
|
0.08
|
|
||
Net income (loss) attributable to the controlling interests per share (1)
|
$
|
0.02
|
|
|
$
|
(0.06
|
)
|
|
|
|
|
||||
Diluted net income (loss) attributable to the controlling interests per share:
|
|
|
|
||||
Continuing operations
|
$
|
0.02
|
|
|
$
|
(0.13
|
)
|
Discontinued operations
|
—
|
|
|
0.08
|
|
||
Net income (loss) attributable to the controlling interests per share (1)
|
$
|
0.02
|
|
|
$
|
(0.06
|
)
|
Weighted average shares outstanding – basic
|
82,086
|
|
|
79,881
|
|
||
Weighted average shares outstanding – diluted
|
82,287
|
|
|
79,881
|
|
(1)
|
Earnings per share may not sum due to rounding
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Net income (loss)
|
$
|
1,719
|
|
|
$
|
(4,405
|
)
|
Other comprehensive loss:
|
|
|
|
||||
Unrealized loss on interest rate hedges
|
(34,567
|
)
|
|
(4,169
|
)
|
||
Comprehensive loss
|
(32,848
|
)
|
|
(8,574
|
)
|
||
Less: Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
||
Comprehensive loss attributable to the controlling interests
|
$
|
(32,848
|
)
|
|
$
|
(8,574
|
)
|
|
Shares Issued and Out-standing
|
|
Shares of Beneficial Interest at Par Value
|
|
Additional Paid in Capital
|
|
Distributions in Excess of
Net Income
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total Shareholders’ Equity
|
|
Noncontrolling Interests in Subsidiaries
|
|
Total Equity
|
|||||||||||||||
Balance, December 31, 2019
|
82,099
|
|
|
$
|
821
|
|
|
$
|
1,592,487
|
|
|
$
|
(183,405
|
)
|
|
$
|
1,823
|
|
|
$
|
1,411,726
|
|
|
$
|
336
|
|
|
$
|
1,412,062
|
|
Net income attributable to the controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
1,719
|
|
|
—
|
|
|
1,719
|
|
|
—
|
|
|
1,719
|
|
|||||||
Unrealized loss on interest rate hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34,567
|
)
|
|
(34,567
|
)
|
|
—
|
|
|
(34,567
|
)
|
|||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|||||||
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,820
|
)
|
|
—
|
|
|
(24,820
|
)
|
|
—
|
|
|
(24,820
|
)
|
|||||||
Equity issuances, net of issuance costs
|
46
|
|
|
1
|
|
|
1,241
|
|
|
—
|
|
|
—
|
|
|
1,242
|
|
|
—
|
|
|
1,242
|
|
|||||||
Shares issued under dividend reinvestment program
|
35
|
|
|
—
|
|
|
921
|
|
|
—
|
|
|
—
|
|
|
921
|
|
|
—
|
|
|
921
|
|
|||||||
Share grants, net of forfeitures and tax withholdings
|
135
|
|
|
1
|
|
|
1,593
|
|
|
—
|
|
|
—
|
|
|
1,594
|
|
|
—
|
|
|
1,594
|
|
|||||||
Balance, March 31, 2020
|
82,315
|
|
|
$
|
823
|
|
|
$
|
1,596,242
|
|
|
$
|
(206,506
|
)
|
|
$
|
(32,744
|
)
|
|
$
|
1,357,815
|
|
|
$
|
333
|
|
|
$
|
1,358,148
|
|
|
Shares Issued and Out-standing
|
|
Shares of Beneficial Interest at Par Value
|
|
Additional Paid in Capital
|
|
Distributions in Excess of
Net Income
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total Shareholders’ Equity
|
|
Noncontrolling Interests in Subsidiaries
|
|
Total Equity
|
|||||||||||||||
Balance, December 31, 2018
|
79,910
|
|
|
$
|
799
|
|
|
$
|
1,526,574
|
|
|
$
|
(469,085
|
)
|
|
$
|
9,839
|
|
|
$
|
1,068,127
|
|
|
$
|
351
|
|
|
$
|
1,068,478
|
|
Cumulative effect of change in accounting principle
|
—
|
|
|
—
|
|
|
—
|
|
|
(906
|
)
|
|
—
|
|
|
(906
|
)
|
|
—
|
|
|
(906
|
)
|
|||||||
Net loss attributable to the controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,405
|
)
|
|
—
|
|
|
(4,405
|
)
|
|
—
|
|
|
(4,405
|
)
|
|||||||
Unrealized loss on interest rate hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,169
|
)
|
|
(4,169
|
)
|
|
—
|
|
|
(4,169
|
)
|
|||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|||||||
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,141
|
)
|
|
—
|
|
|
(24,141
|
)
|
|
—
|
|
|
(24,141
|
)
|
|||||||
Shares issued under dividend reinvestment program
|
43
|
|
|
—
|
|
|
1,097
|
|
|
—
|
|
|
—
|
|
|
1,097
|
|
|
—
|
|
|
1,097
|
|
|||||||
Share grants, net of forfeitures and tax withholdings
|
76
|
|
|
1
|
|
|
2,245
|
|
|
—
|
|
|
—
|
|
|
2,246
|
|
|
—
|
|
|
2,246
|
|
|||||||
Balance, March 31, 2019
|
80,029
|
|
|
$
|
800
|
|
|
$
|
1,529,916
|
|
|
$
|
(498,537
|
)
|
|
$
|
5,670
|
|
|
$
|
1,037,849
|
|
|
$
|
347
|
|
|
$
|
1,038,196
|
|
WASHINGTON REAL ESTATE INVESTMENT TRUST AND SUBSIDIARIES
|
|||||||
|
|
|
|
||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||
(IN THOUSANDS)
|
|||||||
(UNAUDITED)
|
|||||||
|
|
|
|
||||
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income (loss)
|
$
|
1,719
|
|
|
$
|
(4,405
|
)
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
29,720
|
|
|
29,547
|
|
||
Credit losses on lease related receivables
|
923
|
|
|
—
|
|
||
Real estate impairment
|
—
|
|
|
8,374
|
|
||
Share-based compensation expense
|
1,778
|
|
|
2,826
|
|
||
Amortization of debt premiums, discounts and related financing costs
|
645
|
|
|
536
|
|
||
Loss on extinguishment of debt
|
(468
|
)
|
|
—
|
|
||
Changes in operating other assets
|
895
|
|
|
(2,035
|
)
|
||
Changes in operating other liabilities
|
(6,352
|
)
|
|
(7,265
|
)
|
||
Net cash provided by operating activities
|
28,860
|
|
|
27,578
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Capital improvements to real estate
|
(10,846
|
)
|
|
(7,281
|
)
|
||
Development in progress
|
(9,402
|
)
|
|
(6,091
|
)
|
||
Non-real estate capital improvements
|
(94
|
)
|
|
(67
|
)
|
||
Net cash used in investing activities
|
(20,342
|
)
|
|
(13,439
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Line of credit borrowings, net
|
92,000
|
|
|
40,000
|
|
||
Dividends paid
|
(49,485
|
)
|
|
(48,165
|
)
|
||
Principal payments – mortgage notes payable
|
(46,567
|
)
|
|
(610
|
)
|
||
Payment of financing costs
|
—
|
|
|
(252
|
)
|
||
Distributions to noncontrolling interests
|
(3
|
)
|
|
(4
|
)
|
||
Proceeds from dividend reinvestment program
|
921
|
|
|
1,097
|
|
||
Net proceeds from equity issuances
|
1,241
|
|
|
—
|
|
||
Payment of tax withholdings for restricted share awards
|
(141
|
)
|
|
(452
|
)
|
||
Net cash used in financing activities
|
(2,034
|
)
|
|
(8,386
|
)
|
||
Net increase in cash, cash equivalents and restricted cash
|
6,484
|
|
|
5,753
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
14,751
|
|
|
7,640
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
21,235
|
|
|
$
|
13,393
|
|
|
|
|
|
WASHINGTON REAL ESTATE INVESTMENT TRUST AND SUBSIDIARIES
|
|||||||
|
|
|
|
||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||
(IN THOUSANDS)
|
|||||||
(UNAUDITED)
|
|||||||
|
|
|
|
||||
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Cash paid for interest, net of amounts capitalized
|
$
|
5,133
|
|
|
$
|
6,848
|
|
Change in accrued capital improvements and development costs
|
4,851
|
|
|
8,119
|
|
||
|
|
|
|
||||
Reconciliation of cash, cash equivalents and restricted cash:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
20,601
|
|
|
$
|
12,025
|
|
Restricted cash
|
634
|
|
|
1,368
|
|
||
Cash, cash equivalents and restricted cash
|
$
|
21,235
|
|
|
$
|
13,393
|
|
Standard/Description
|
Effective Date and Adoption Considerations
|
Effect on Financial Statements or Other significant Matters
|
ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This standard requires financial assets measured on an amortized cost basis, including trade receivables, to be presented at the net amount expected to be collected.
|
We adopted the new standard as of January 1, 2020.
|
The adoption of the new standard did not have a material effect on our consolidated financial statements.
|
ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software. This standard requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance to determine which implementation costs to capitalize as assets.
|
We adopted the new standard as of January 1, 2020.
|
The adoption of the new standard did not have a material effect on our consolidated financial statements.
|
Standard/Description
|
Effective Date and Adoption Considerations
|
Effect on Financial Statements or Other significant Matters
|
ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard contains optional practical expedients and exceptions for applying Generally Accepted Accounting Principles (“GAAP”) to contracts, hedging relations, and other transactions affected by reference rate reform if certain criteria are met.
|
We elected certain optional practical expedients as of January 1, 2020.
|
The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. As of January 1, 2020, we have elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
|
Disposition Date
|
|
Property Name
|
|
Property Type
|
|
Rentable Square Feet
|
|
Contract Sales Price
(in thousands) |
|
(Loss) Gain on Sale
(in thousands) |
||||
April 21, 2020
|
|
John Marshall II (1)
|
|
Office
|
|
223,000
|
|
$
|
57,000
|
|
|
N/A
|
|
|
|
|
|
|
Total 2020
|
|
223,000
|
|
$
|
57,000
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
June 26, 2019
|
|
Quantico Corporate Center (2)
|
|
Office
|
|
272,000
|
|
$
|
33,000
|
|
|
$
|
(1,046
|
)
|
July 23, 2019
|
|
Shopping Center Portfolio (3)
|
|
Retail
|
|
800,000
|
|
485,250
|
|
|
333,023
|
|
||
August 21, 2019
|
|
Frederick Crossing and Frederick County Square
|
|
Retail
|
|
520,000
|
|
57,500
|
|
|
9,507
|
|
||
August 27, 2019
|
|
Centre at Hagerstown
|
|
Retail
|
|
330,000
|
|
23,500
|
|
|
(3,506
|
)
|
||
December 19, 2019
|
|
1776 G Street
|
|
Office
|
|
262,000
|
|
129,500
|
|
|
61,007
|
|
||
|
|
|
|
Total 2019
|
|
2,184,000
|
|
$
|
728,750
|
|
|
$
|
398,985
|
|
(1)
|
Held for sale as of March 31, 2020.
|
(2)
|
Consists of 925 and 1000 Corporate Drive.
|
(3)
|
Consists of five retail properties: Gateway Overlook, Wheaton Park, Olney Village Center, Bradlee Shopping Center and Shoppes of Foxchase.
|
|
Three Months Ended March 31, 2019
|
||
Real estate rental revenue
|
$
|
11,740
|
|
Real estate expenses
|
(3,067
|
)
|
|
Depreciation and amortization
|
(2,490
|
)
|
|
Interest expense
|
(145
|
)
|
|
Income from discontinued operations
|
$
|
6,038
|
|
|
|
||
Basic net income per share
|
$
|
0.08
|
|
Diluted net income per share
|
$
|
0.08
|
|
|
|
||
Capital expenditures
|
$
|
406
|
|
2020
|
|
$
|
106,177
|
|
2021
|
|
137,244
|
|
|
2022
|
|
124,684
|
|
|
2023
|
|
107,647
|
|
|
2024
|
|
94,677
|
|
|
Thereafter
|
|
316,221
|
|
|
|
|
$
|
886,650
|
|
2020
|
|
$
|
195
|
|
2021
|
|
260
|
|
|
2022
|
|
260
|
|
|
2023
|
|
260
|
|
|
2024
|
|
260
|
|
|
Thereafter
|
|
11,830
|
|
|
|
|
13,065
|
|
|
Imputed interest
|
|
(9,156
|
)
|
|
Lease liability
|
|
$
|
3,909
|
|
Committed capacity
|
$
|
700,000
|
|
Borrowings outstanding
|
(148,000
|
)
|
|
Unused and available
|
$
|
552,000
|
|
Balance, December 31, 2019
|
$
|
56,000
|
|
Borrowings
|
115,000
|
|
|
Repayments
|
(23,000
|
)
|
|
Balance, March 31, 2020
|
$
|
148,000
|
|
|
|
|
|
Fair Value
|
||||||||
|
|
|
|
Derivative Assets (Liabilities)
|
||||||||
Derivative Instrument
|
Aggregate Notional Amount
|
Effective Date
|
Maturity Date
|
March 31, 2020
|
|
December 31, 2019
|
||||||
Interest rate swaps
|
$
|
150,000
|
|
October 15, 2015
|
March 15, 2021
|
$
|
(1,851
|
)
|
|
$
|
(62
|
)
|
Interest rate swaps
|
150,000
|
|
March 31, 2017
|
July 21, 2023
|
(4,316
|
)
|
|
1,825
|
|
|||
Interest rate swaps
|
100,000
|
|
June 29, 2018
|
July 21, 2023
|
(7,448
|
)
|
|
(3,664
|
)
|
|||
Interest rate swaps
|
200,000
|
|
April 1, 2020
|
April 1, 2030
|
(19,129
|
)
|
|
3,724
|
|
|||
|
$
|
600,000
|
|
|
|
$
|
(32,744
|
)
|
|
$
|
1,823
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Unrealized loss on interest rate hedges
|
$
|
(34,567
|
)
|
|
$
|
(4,169
|
)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||||||||||
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
SERP
|
$
|
1,561
|
|
|
$
|
—
|
|
|
$
|
1,561
|
|
|
$
|
—
|
|
|
$
|
1,792
|
|
|
$
|
—
|
|
|
$
|
1,792
|
|
|
$
|
—
|
|
Interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,549
|
|
|
—
|
|
|
5,549
|
|
|
—
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
$
|
(32,744
|
)
|
|
$
|
—
|
|
|
$
|
(32,744
|
)
|
|
$
|
—
|
|
|
$
|
(3,726
|
)
|
|
$
|
—
|
|
|
$
|
(3,726
|
)
|
|
$
|
—
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
Cash and cash equivalents
|
$
|
20,601
|
|
|
$
|
20,601
|
|
|
$
|
12,939
|
|
|
$
|
12,939
|
|
Restricted cash
|
634
|
|
|
634
|
|
|
1,812
|
|
|
1,812
|
|
||||
Mortgage notes payable, net
|
—
|
|
|
—
|
|
|
47,074
|
|
|
47,899
|
|
||||
Line of credit
|
148,000
|
|
|
148,000
|
|
|
56,000
|
|
|
56,000
|
|
||||
Notes payable, net
|
997,075
|
|
|
995,875
|
|
|
996,722
|
|
|
1,022,937
|
|
|
Threshold
|
Target
|
High
|
President and Chief Executive Officer
|
198%
|
275%
|
440%
|
Executive Vice President
|
143%
|
200%
|
295%
|
Senior Vice President
|
100%
|
143%
|
207%
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Numerator:
|
|
|
|
||||
Income (loss) from continuing operations
|
$
|
1,719
|
|
|
$
|
(10,443
|
)
|
Allocation of earnings to unvested restricted share awards to continuing operations
|
(151
|
)
|
|
(134
|
)
|
||
Adjusted income (loss) from continuing operations attributable to the controlling interests
|
1,568
|
|
|
(10,577
|
)
|
||
Adjusted income from discontinued operations
|
—
|
|
|
6,038
|
|
||
Adjusted net income (loss) attributable to the controlling interests
|
$
|
1,568
|
|
|
$
|
(4,539
|
)
|
Denominator:
|
|
|
|
||||
Weighted average shares outstanding – basic
|
82,086
|
|
|
79,881
|
|
||
Effect of dilutive securities:
|
|
|
|
||||
Employee restricted share awards
|
189
|
|
|
—
|
|
||
Operating partnership units
|
12
|
|
|
—
|
|
||
Weighted average shares outstanding – diluted
|
82,287
|
|
|
79,881
|
|
||
Earnings per common share, basic:
|
|
|
|
||||
Continuing operations
|
$
|
0.02
|
|
|
$
|
(0.13
|
)
|
Discontinued operations
|
—
|
|
|
0.08
|
|
||
Basic net income (loss) attributable to the controlling interests per common share (1)
|
$
|
0.02
|
|
|
$
|
(0.06
|
)
|
Earnings per common share, diluted:
|
|
|
|
||||
Continuing operations
|
$
|
0.02
|
|
|
$
|
(0.13
|
)
|
Discontinued operations
|
—
|
|
|
0.08
|
|
||
Diluted net income (loss) attributable to the controlling interests per common share (1)
|
$
|
0.02
|
|
|
$
|
(0.06
|
)
|
|
|
|
|
||||
Dividends declared per common share
|
$
|
0.30
|
|
|
$
|
0.30
|
|
(1)
|
Earnings per share may not sum due to rounding.
|
|
Three Months Ended March 31, 2020
|
||||||||||||||
|
Office
|
|
Multifamily
|
|
Corporate and Other (1)
|
|
Consolidated
|
||||||||
Real estate rental revenue
|
$
|
35,670
|
|
|
$
|
36,578
|
|
|
$
|
4,544
|
|
|
$
|
76,792
|
|
Real estate expenses
|
13,317
|
|
|
13,985
|
|
|
1,337
|
|
|
28,639
|
|
||||
Net operating income
|
$
|
22,353
|
|
|
$
|
22,593
|
|
|
$
|
3,207
|
|
|
$
|
48,153
|
|
Depreciation and amortization
|
|
|
|
|
|
|
(29,720
|
)
|
|||||||
General and administrative expenses
|
|
|
|
|
|
|
(6,337
|
)
|
|||||||
Interest expense
|
|
|
|
|
|
|
(10,845
|
)
|
|||||||
Gain on extinguishment of debt
|
|
|
|
|
|
|
468
|
|
|||||||
Net income
|
|
|
|
|
|
|
1,719
|
|
|||||||
Less: Net income attributable to noncontrolling interests in subsidiaries
|
|
|
|
|
|
|
—
|
|
|||||||
Net income attributable to the controlling interests
|
|
|
|
|
|
|
$
|
1,719
|
|
||||||
Capital expenditures
|
$
|
7,088
|
|
|
$
|
3,469
|
|
|
$
|
383
|
|
|
$
|
10,940
|
|
Total assets
|
$
|
1,130,013
|
|
|
$
|
1,339,925
|
|
|
$
|
152,682
|
|
|
$
|
2,622,620
|
|
(1)
|
Corporate and Other is comprised of eight retail properties that do not meet the qualitative or quantitative criteria for a reportable segment and are classified as “Corporate and other” in our segment disclosure tables.
|
|
Three Months Ended March 31, 2019
|
||||||||||||||
|
Office
|
|
Multifamily
|
|
Corporate
and Other (2)
|
|
Consolidated
|
||||||||
Real estate rental revenue
|
$
|
42,293
|
|
|
$
|
24,335
|
|
|
$
|
4,806
|
|
|
$
|
71,434
|
|
Real estate expenses
|
15,224
|
|
|
9,470
|
|
|
1,449
|
|
|
26,143
|
|
||||
Net operating income
|
$
|
27,069
|
|
|
$
|
14,865
|
|
|
$
|
3,357
|
|
|
$
|
45,291
|
|
Depreciation and amortization
|
|
|
|
|
|
|
(27,057
|
)
|
|||||||
General and administrative expenses
|
|
|
|
|
|
|
(7,807
|
)
|
|||||||
Interest expense
|
|
|
|
|
|
|
(12,496
|
)
|
|||||||
Real estate impairment
|
|
|
|
|
|
|
(8,374
|
)
|
|||||||
Discontinued operations:
|
|
|
|
|
|
|
|
||||||||
Income from operations of properties sold or held for sale
|
|
|
|
|
|
|
6,038
|
|
|||||||
Net loss
|
|
|
|
|
|
|
(4,405
|
)
|
|||||||
Less: Net income attributable to noncontrolling interests in subsidiaries
|
|
|
|
|
|
|
—
|
|
|||||||
Net loss attributable to the controlling interests
|
|
|
|
|
|
|
$
|
(4,405
|
)
|
||||||
Capital expenditures
|
$
|
4,923
|
|
|
$
|
1,803
|
|
|
$
|
622
|
|
|
$
|
7,348
|
|
Total assets
|
$
|
1,238,795
|
|
|
$
|
796,525
|
|
|
$
|
373,147
|
|
|
$
|
2,408,467
|
|
(2)
|
Net operating income includes the retail properties not classified as discontinued operations: Takoma Park, Westminster, Concord Center, Chevy Chase Metro Plaza, 800 S. Washington Street, Randolph Shopping Center, Montrose Shopping Center and Spring Valley Village, and total assets and capital expenditures include all retail properties, including those classified as discontinued operations.
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Issuance of common shares
|
35
|
|
|
43
|
|
||
Weighted average price per share
|
$
|
26.96
|
|
|
$
|
25.84
|
|
Net proceeds
|
$
|
921
|
|
|
$
|
1,097
|
|
•
|
Overview. Discussion of our business outlook, operating results, investment activity, financing activity and capital requirements to provide context for the remainder of MD&A.
|
•
|
Results of Operations. Discussion of our financial results comparing the 2020 Quarter to the 2019 Quarter.
|
•
|
Liquidity and Capital Resources. Discussion of our financial condition and analysis of changes in our capital structure and cash flows.
|
•
|
Funds From Operations. Calculation of NAREIT Funds From Operations (“NAREIT FFO”), a non-GAAP supplemental measure to net income.
|
•
|
Critical Accounting Policies and Estimates. Descriptions of accounting policies that reflect significant judgments and estimates used in the preparation of our consolidated financial statements.
|
•
|
Net operating income (“NOI”), calculated as set forth below under the caption "Results of Operations - Net Operating Income." NOI is a non-GAAP supplemental measure to net income.
|
•
|
Funds From Operations (“NAREIT FFO”), calculated as set forth below under the caption “Funds from Operations.” NAREIT FFO is a non-GAAP supplemental measure to net income.
|
•
|
Ending occupancy, calculated as occupied square footage as a percentage of total square footage as of the last day of that period, except Multifamily, on which ending occupancy is calculated as occupied units as a percentage of total available units as of the last day of that period.
|
•
|
Leased percentage, calculated as the percentage of available physical net rentable area leased for our commercial properties and percentage of apartments leased for our multifamily properties.
|
•
|
Leasing activity, including new leases, renewals and expirations.
|
•
|
the elimination of the taxable income limit for net operating losses (“NOLs”) for all taxable years beginning before January 1, 2021, thereby permitting corporate taxpayers to use NOLs to fully offset taxable income (although as a REIT, WashREIT will continue to only be able to use NOLs against taxable income remaining after taking into account any dividends-paid deduction);
|
•
|
the ability for our TRSs to carry back NOLs arising in 2018, 2019, and 2020 to the five taxable years preceding the taxable year of the loss;
|
•
|
an increase of the business interest limitation under Section 163(j) of the Code from 30 percent to 50 percent of adjustable taxable income for taxable years beginning in 2019 and 2020 and addition of an election by taxpayers to use their 2019 adjusted taxable income as their adjusted taxable income in 2020 for purposes of applying the limitation; and
|
•
|
a “technical correction” amending Section 168(e)(3)(E) of the Code to add “qualified improvement property” to “15-year property” and assigning a class life of 20 years under Section 168(g)(3)(B) of the Code to qualified improvement property under Section 168(e)(3)(E)(vii) of the Code.
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|||||||
Net income (loss) attributable to the controlling interests
|
$
|
1,719
|
|
|
$
|
(4,405
|
)
|
|
$
|
6,124
|
|
|
(139.0
|
)%
|
NOI (1)
|
48,153
|
|
|
45,291
|
|
|
2,862
|
|
|
6.3
|
%
|
|||
NAREIT FFO (2)
|
$
|
31,439
|
|
|
$
|
33,516
|
|
|
$
|
(2,077
|
)
|
|
(6.2
|
)%
|
______________________________
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
Non-Same-Store
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
Same-Store
|
|
|
|
|
|
Acquisitions (1)
|
|
Development/
Re-development (2)
|
|
Held for Sale or Sold (3)
|
|
Consolidated
|
|
|
||||||||||||||||||||||||||||||||||||||
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
$
Change |
|
%
Change |
||||||||||||||||||||||||||
Real estate rental revenue
|
$
|
63,529
|
|
|
$
|
64,653
|
|
|
$
|
(1,124
|
)
|
|
(1.7
|
)%
|
|
$
|
11,437
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
1,789
|
|
|
$
|
6,781
|
|
|
$
|
76,792
|
|
|
$
|
71,434
|
|
|
$
|
5,358
|
|
|
7.5
|
%
|
Real estate expenses
|
23,198
|
|
|
23,675
|
|
|
(477
|
)
|
|
(2.0
|
)%
|
|
4,511
|
|
|
—
|
|
|
247
|
|
|
—
|
|
|
683
|
|
|
2,468
|
|
|
28,639
|
|
|
26,143
|
|
|
2,496
|
|
|
9.5
|
%
|
||||||||||||
NOI
|
$
|
40,331
|
|
|
$
|
40,978
|
|
|
$
|
(647
|
)
|
|
(1.6
|
)%
|
|
$
|
6,926
|
|
|
$
|
—
|
|
|
$
|
(210
|
)
|
|
$
|
—
|
|
|
$
|
1,106
|
|
|
$
|
4,313
|
|
|
$
|
48,153
|
|
|
$
|
45,291
|
|
|
$
|
2,862
|
|
|
6.3
|
%
|
Reconciliation to net income attributable to the controlling interests:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(29,720
|
)
|
|
(27,057
|
)
|
|
(2,663
|
)
|
|
9.8
|
%
|
|||||||||||||||||||||||||||
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,337
|
)
|
|
(7,807
|
)
|
|
1,470
|
|
|
(18.8
|
)%
|
|||||||||||||||||||||||||||
Real estate impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(8,374
|
)
|
|
8,374
|
|
|
(100.0
|
)%
|
|||||||||||||||||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,845
|
)
|
|
(12,496
|
)
|
|
1,651
|
|
|
(13.2
|
)%
|
|||||||||||||||||||||||||||
Gain on extinguishment of debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
468
|
|
|
—
|
|
|
468
|
|
|
|
|
|||||||||||||||||||||||||||
Discontinued operations (4):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Income from properties sold or held for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
6,038
|
|
|
(6,038
|
)
|
|
(100.0
|
)%
|
|||||||||||||||||||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,719
|
|
|
(4,405
|
)
|
|
6,124
|
|
|
(139.0
|
)%
|
|||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||||||||||||||||||||||||||||
Net income (loss) attributable to the controlling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,719
|
|
|
$
|
(4,405
|
)
|
|
$
|
6,124
|
|
|
(139.0
|
)%
|
(1)
|
Acquisitions:
|
(2)
|
Development/redevelopment:
|
(3)
|
Sold (classified as continuing operations):
|
(4)
|
Discontinued operations:
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|||||||
Multifamily
|
$
|
25,104
|
|
|
$
|
24,335
|
|
|
$
|
769
|
|
|
3.2
|
%
|
Office
|
33,881
|
|
|
35,512
|
|
|
(1,631
|
)
|
|
(4.6
|
)%
|
|||
Other
|
4,544
|
|
|
4,806
|
|
|
(262
|
)
|
|
(5.5
|
)%
|
|||
Total same-store real estate rental revenue
|
$
|
63,529
|
|
|
$
|
64,653
|
|
|
$
|
(1,124
|
)
|
|
(1.7
|
)%
|
•
|
Multifamily: Increase primarily due to higher rental revenue ($0.8 million) caused by higher rental rates.
|
•
|
Office: Decrease primarily due to lower rental revenue ($0.6 million) due to lease expirations at 1220 19th Street, Arlington Tower, 1227 25th Street and 1775 Eye Street, higher credit losses ($0.5 million) and lower recoveries ($0.5 million).
|
|
March 31, 2020
|
|
March 31, 2019
|
|
(Decrease) increase
|
|||||||||||||||||||||
Segment
|
Same-Store
|
|
Non-Same-Store
|
|
Total
|
|
Same-Store
|
|
Non-Same-Store
|
|
Total
|
|
Same-Store
|
|
Non-Same-Store
|
|
Total
|
|||||||||
Multifamily
|
95.3
|
%
|
|
81.7
|
%
|
|
89.9
|
%
|
|
95.5
|
%
|
|
N/A
|
|
|
95.5
|
%
|
|
(0.2
|
)%
|
|
N/A
|
|
|
(5.6
|
)%
|
Office
|
87.2
|
%
|
|
100.0
|
%
|
|
88.1
|
%
|
|
89.9
|
%
|
|
87.2
|
%
|
|
89.6
|
%
|
|
(2.7
|
)%
|
|
12.8
|
%
|
|
(1.5
|
)%
|
Other
|
91.1
|
%
|
|
N/A
|
|
|
91.1
|
%
|
|
90.0
|
%
|
|
N/A
|
|
|
90.0
|
%
|
|
1.1
|
%
|
|
N/A
|
|
|
1.1
|
%
|
Total
|
91.6
|
%
|
|
85.4
|
%
|
|
89.9
|
%
|
|
92.7
|
%
|
|
87.2
|
%
|
|
92.2
|
%
|
|
(1.1
|
)%
|
|
(1.8
|
)%
|
|
(2.3
|
)%
|
•
|
Multifamily: Decrease in same-store ending occupancy was primarily due to lower ending occupancy at The Maxwell, The Paramount and Bennett Park, partially offset by higher ending occupancy at Riverside and Clayborne Apartments.
|
•
|
Office: Decrease in same-store ending occupancy was primarily due to lower ending occupancy at 1220 19th Street, 1227 25th Street, 1775 Eye Street and Fairgate at Ballston, partially offset by higher ending occupancy at Watergate 600.
|
|
Square Feet
(in thousands)
|
|
Average Rental Rate
(per square foot)
|
|
% Rental Rate Increase (Decrease)
|
|
Leasing Costs (1)
(per square foot)
|
|
Free Rent (weighted average months)
|
|||||||
Office
|
89
|
|
|
$
|
46.81
|
|
|
7.8
|
%
|
|
$
|
11.40
|
|
|
1.1
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|||||||
Multifamily
|
$
|
9,227
|
|
|
$
|
9,470
|
|
|
$
|
(243
|
)
|
|
(2.6
|
)%
|
Office
|
12,634
|
|
|
12,756
|
|
|
(122
|
)
|
|
(1.0
|
)%
|
|||
Other
|
1,337
|
|
|
1,449
|
|
|
(112
|
)
|
|
(7.7
|
)%
|
|||
Total same-store real estate expenses
|
$
|
23,198
|
|
|
$
|
23,675
|
|
|
$
|
(477
|
)
|
|
(2.0
|
)%
|
•
|
Multifamily: Decrease primarily due to lower utilities expenses ($0.3 million), partially offset by higher real estate taxes ($0.1 million).
|
•
|
Office: Decrease primarily due to lower utilities ($0.2 million) and marketing ($0.1 million) expenses, partially offset by higher repairs and maintenance expenses ($0.2 million).
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
Debt Type
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|||||||
Notes payable
|
$
|
10,159
|
|
|
$
|
10,132
|
|
|
$
|
27
|
|
|
0.3
|
%
|
Mortgage notes payable
|
172
|
|
|
521
|
|
|
(349
|
)
|
|
(67.0
|
)%
|
|||
Line of credit
|
1,398
|
|
|
2,556
|
|
|
(1,158
|
)
|
|
(45.3
|
)%
|
|||
Capitalized interest
|
(884
|
)
|
|
(713
|
)
|
|
(171
|
)
|
|
24.0
|
%
|
|||
Total
|
$
|
10,845
|
|
|
$
|
12,496
|
|
|
$
|
(1,651
|
)
|
|
(13.2
|
)%
|
•
|
Mortgage notes payable: Decrease primarily due to repayments of the mortgage note secured by Olney Village Center in July 2019 and the mortgage note secured by Yale West Apartments in January 2020.
|
•
|
Line of credit: Decrease primarily due to lower weighted average borrowings of $108.3 million and lower weighted average interest rate of 2.60% during the 2020 Quarter, as compared to $210.3 million and 3.6%, respectively, during the 2019 Quarter.
|
•
|
Capitalized interest: Increase primarily due to higher spending related to the Trove, the multifamily development adjacent to The Wellington, and the capitalization of interest on spending related to the multifamily development adjacent to Riverside Apartments.
|
•
|
Funding dividends and distributions to our shareholders;
|
•
|
Approximately $55.0 - $60.0 million to invest in our existing portfolio of operating assets, including approximately $20.0 - $25.0 million to fund tenant-related capital requirements and leasing commissions;
|
•
|
Approximately $30.0 - $35.0 million to invest in our development and redevelopment projects; and
|
•
|
Funding for potential property acquisitions during 2020, offset by proceeds from potential property dispositions.
|
|
Future Maturities of Debt
|
||||||||||||
Year
|
Unsecured Debt
|
|
Revolving Credit Facility
|
|
Total Debt
|
|
Average Interest Rate
|
||||||
2020
|
$
|
250,000
|
|
(1)
|
$
|
—
|
|
|
$
|
250,000
|
|
|
5.1%
|
2021
|
150,000
|
|
(2)
|
—
|
|
|
150,000
|
|
|
2.7%
|
|||
2022
|
300,000
|
|
|
—
|
|
|
300,000
|
|
|
4.0%
|
|||
2023
|
250,000
|
|
(3)
|
148,000
|
|
(4)
|
398,000
|
|
|
2.5%
|
|||
2024
|
—
|
|
|
—
|
|
|
—
|
|
|
—%
|
|||
2025
|
—
|
|
|
—
|
|
|
—
|
|
|
—%
|
|||
Thereafter
|
50,000
|
|
|
—
|
|
|
50,000
|
|
|
7.4%
|
|||
Scheduled principal payments
|
$
|
1,000,000
|
|
|
$
|
148,000
|
|
|
$
|
1,148,000
|
|
|
3.7%
|
Net premiums/discounts
|
(699
|
)
|
|
—
|
|
|
(699
|
)
|
|
|
|||
Loan costs, net of amortization
|
(2,226
|
)
|
|
—
|
|
|
(2,226
|
)
|
|
|
|||
Total
|
$
|
997,075
|
|
|
$
|
148,000
|
|
|
$
|
1,145,075
|
|
|
3.7%
|
(1)
|
In April 2020, WashREIT prepaid without penalty the $250.0 million of 4.95% Senior Notes scheduled to mature in October 2020 using borrowings on our Revolving Credit Facility.
|
(2)
|
WashREIT uses interest rate swaps to effectively fix the $150.0 million term loan's variable interest rate at 2.72%.
|
(3)
|
WashREIT uses interest rate swaps to effectively fix the $250.0 million term loan's variable interest rate at 2.87%.
|
(4)
|
Maturity date for credit facility in March 2023 assumes election of option for two additional 6-month periods.
|
•
|
ratio of total debt to total asset value of not more than 0.60 to 1.00 (subject to a higher level following material acquisitions);
|
•
|
ratio of adjusted EBITDA (earnings before noncontrolling interests, interest expense, income tax expense, depreciation, amortization, acquisition costs, and extraordinary, unusual or nonrecurring gains and losses) to fixed charges of not less than 1.50 to 1.00;
|
•
|
ratio of secured indebtedness to total asset value of not more than 0.40 to 1.00;
|
•
|
ratio of adjusted net operating income from unencumbered properties satisfying certain criteria specified in the amended and restated credit agreement (“Credit Agreement”) to interest expense on unsecured indebtedness of not less than 1.75 to 1.00; and
|
•
|
ratio of unsecured indebtedness to the unencumbered pool value of properties satisfying certain criteria specified in, and valued per the terms of, the Credit Agreement of not more than 0.60 to 1.00 (subject to a higher level following material acquisitions).
|
•
|
A maximum ratio of 65.0% of total indebtedness to total assets;
|
•
|
A maximum ratio of 40.0% of secured indebtedness to total assets;
|
•
|
A minimum ratio of 1.50 of our income available for debt service payments to required debt service payments; and
|
•
|
A minimum ratio of 1.50 of total unencumbered assets to total unsecured indebtedness.
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Issuance of common shares
|
35
|
|
|
43
|
|
||
Weighted average price per share
|
$
|
26.96
|
|
|
$
|
25.84
|
|
Net proceeds
|
$
|
921
|
|
|
$
|
1,097
|
|
|
Three Months Ended March 31,
|
|
Change
|
|||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|||||||
Net cash provided by operating activities
|
$
|
28,860
|
|
|
$
|
27,578
|
|
|
$
|
1,282
|
|
|
4.6
|
%
|
Net cash used in investing activities
|
(20,342
|
)
|
|
(13,439
|
)
|
|
(6,903
|
)
|
|
(51.4
|
)%
|
|||
Net cash used in financing activities
|
(2,034
|
)
|
|
(8,386
|
)
|
|
6,352
|
|
|
(75.7
|
)%
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Net income (loss)
|
$
|
1,719
|
|
|
$
|
(4,405
|
)
|
Adjustments:
|
|
|
|
||||
Depreciation and amortization
|
29,720
|
|
|
27,057
|
|
||
Real estate impairment
|
—
|
|
|
8,374
|
|
||
Discontinued operations:
|
|
|
|
||||
Depreciation and amortization
|
—
|
|
|
2,490
|
|
||
NAREIT FFO
|
$
|
31,439
|
|
|
$
|
33,516
|
|
(1)
|
Includes $150.0 million and $250.0 million term loans with floating interest rates. The interest rates on the $150.0 million and $250.0 million term loans are effectively fixed by interest rate swap arrangements at 2.7% and 2.9%, respectively.
|
(2)
|
In April 2020, WashREIT prepaid without penalty the $250.0 million of 4.95% Senior Notes scheduled to mature in October 2020 using borrowings on our Revolving Credit Facility.
|
(3)
|
Maturity date on the unsecured credit facility of 2023 assumes the election of two additional six-month options.
|
Notional Amount
|
|
|
|
Floating Index Rate
|
|
|
|
|
|
Fair Value as of:
|
||||||||
|
Fixed Rate
|
|
|
Effective Date
|
|
Expiration Date
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||
$
|
75,000
|
|
|
1.619%
|
|
One-Month USD-LIBOR
|
|
10/15/2015
|
|
3/15/2021
|
|
$
|
(923
|
)
|
|
$
|
(28
|
)
|
75,000
|
|
|
1.626%
|
|
One-Month USD-LIBOR
|
|
10/15/2015
|
|
3/15/2021
|
|
(928
|
)
|
|
(34
|
)
|
|||
100,000
|
|
|
1.205%
|
|
One-Month USD-LIBOR
|
|
3/31/2017
|
|
7/21/2023
|
|
(2,875
|
)
|
|
1,218
|
|
|||
50,000
|
|
|
1.208%
|
|
One-Month USD-LIBOR
|
|
3/31/2017
|
|
7/21/2023
|
|
(1,441
|
)
|
|
607
|
|
|||
25,000
|
|
|
2.610%
|
|
One-Month USD-LIBOR
|
|
6/29/2018
|
|
7/21/2023
|
|
(1,862
|
)
|
|
(917
|
)
|
|||
25,000
|
|
|
2.610%
|
|
One-Month USD-LIBOR
|
|
6/29/2018
|
|
7/21/2023
|
|
(1,862
|
)
|
|
(915
|
)
|
|||
25,000
|
|
|
2.610%
|
|
One-Month USD-LIBOR
|
|
6/29/2018
|
|
7/21/2023
|
|
(1,862
|
)
|
|
(917
|
)
|
|||
25,000
|
|
|
2.610%
|
|
One-Month USD-LIBOR
|
|
6/29/2018
|
|
7/21/2023
|
|
(1,862
|
)
|
|
(915
|
)
|
|||
50,000
|
|
|
1.680%
|
|
One-Month USD-LIBOR
|
|
4/1/2020
|
|
4/1/2030
|
|
(4,875
|
)
|
|
844
|
|
|||
50,000
|
|
|
1.680%
|
|
One-Month USD-LIBOR
|
|
4/1/2020
|
|
4/1/2030
|
|
(4,875
|
)
|
|
844
|
|
|||
50,000
|
|
|
1.718%
|
|
One-Month USD-LIBOR
|
|
4/1/2020
|
|
4/1/2030
|
|
(4,690
|
)
|
|
1,018
|
|
|||
50,000
|
|
|
1.718%
|
|
One-Month USD-LIBOR
|
|
4/1/2020
|
|
4/1/2030
|
|
(4,689
|
)
|
|
1,018
|
|
|||
$
|
600,000
|
|
|
|
|
|
|
|
|
|
|
$
|
(32,744
|
)
|
|
$
|
1,823
|
|
•
|
a decrease in real estate rental revenue (our primary source of operating cash flow), as a result of temporary rent freezes impacting new and renewal rental rates on multifamily properties, longer lease-up periods for both anticipated and unanticipated vacancies, including as a result of a shift from physical to virtual tours, lower revenue recognized as a result of waiving late fees and a reduction in parking revenue, as well as our tenants’ ability and willingness to pay rent, and our ability to continue to collect rents, on a timely basis or at all (for example, 9% of tenants in our office portfolio and 5% of tenants in our multifamily portfolio had not yet made their full April rent payments, as of April 21, 2020;
|
•
|
a complete or partial closure of one or more of our properties resulting from government or tenant action (as of April 21, 2020, our commercial properties are operating on a limited basis pursuant to local government orders, except for essential businesses);
|
•
|
reductions in demand for commercial space in the Washington, D.C. metropolitan area and the inability to provide physical tours of either our commercial and multifamily spaces may result in our inability to renew leases, re-lease space as leases expire, or lease vacant space, particularly without concessions, or a decline in rental rates on new leases (approximately 4% of our office leases and 1% of our other leases are scheduled to expire in 2020);
|
•
|
the inability of one or more major tenants to pay rent, or the bankruptcy or insolvency of one or more major tenants, due to a downturn in its business or a weakening of its financial condition related to the pandemic;
|
•
|
the inability to decrease certain fixed expenses at our properties despite decreased operations at such properties;
|
•
|
the inability of our third-party service providers to adequately perform their property management and/or leasing activities at our properties due to decreased on-site staff;
|
•
|
difficulty accessing debt and equity capital on attractive terms, or at all, and a severe disruption and instability in the global financial markets or deteriorations in credit and financing conditions, which may affect our access to capital and our commercial tenants' ability to fund their business operations and meet their obligations to us;
|
•
|
the financial impact of the COVID-19 pandemic could negatively impact our future compliance with financial covenants of debt agreements;
|
•
|
a decline in the market value of real estate in the Washington, D.C. region may result in the carrying value of certain real estate assets exceeding their fair value, which may require us to recognize an impairment to those assets;
|
•
|
future delays in the supply of products or services may negatively impact our ability to complete the development, redevelopment, renovations and lease-up of our buildings on schedule or for their original estimated cost;
|
•
|
loss of cash balances that we periodically invest in a variety of short-term investments in order to preserve principal and maintain a high degree of liquidity while providing current income could result in a lower level of liquidity;
|
•
|
a general decline in business activity and demand for real estate transactions could adversely affect our ability or desire to grow or change the complexion of our portfolio of properties;
|
•
|
our insurance may not cover loss of revenue or other expenses resulting from the pandemic and related shelter-in-place rules;
|
•
|
unanticipated costs and operating expenses and decreased anticipated revenue related to compliance with regulations, such as additional expenses related to staff working remotely, requirements to provide employees with additional mandatory paid time off and increased expenses related to sanitation measures performed at each of our properties, as well as additional expenses incurred to protect the welfare of our employees, such as expanded access to health services;
|
•
|
the potential for one or more members of our senior management team to become sick with COVID-19 and the loss of such services could adversely affect our business
|
•
|
the increased vulnerability to cyber-attacks or cyber intrusions while employees are working remotely has the potential to disrupt our operations or cause material harm to our financial condition; and
|
•
|
complying with REIT requirements during a period of reduced cash flow could cause us to liquidate otherwise attractive investments or borrow funds on unfavorable conditions.
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
Exhibit Description
|
|
Form
|
|
File
Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed
Herewith
|
10.1
|
|
10-K
|
|
001-06622
|
|
10.45
|
|
2/19/2020
|
|
|
|
10.2
|
|
10-K
|
|
001-06622
|
|
10.46
|
|
2/19/2020
|
|
|
|
31.1
|
|
|
|
|
|
|
|
|
|
X
|
|
31.2
|
|
|
|
|
|
|
|
|
|
X
|
|
31.3
|
|
|
|
|
|
|
|
|
|
X
|
|
32
|
|
|
|
|
|
|
|
|
|
X
|
|
101.INS
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
|
|
|
|
|
|
X
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
|
|
X
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101)
|
|
|
|
|
|
|
|
|
|
|
WASHINGTON REAL ESTATE INVESTMENT TRUST
|
||
|
|
|
|
|
/s/ Paul T. McDermott
|
|
|
Paul T. McDermott
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
/s/ Stephen E. Riffee
|
|
|
Stephen E. Riffee
|
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial Officer) |
|
|
|
|
|
/s/ W. Drew Hammond
|
|
|
W. Drew Hammond
|
|
|
Vice President, Chief Accounting Officer and Treasurer
(Principal Accounting Officer)
|
1 Year Washington REIT Chart |
1 Month Washington REIT Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions