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WASHINGTON REAL ESTATE INVESTMENT TRUST 1992 NET INCOME UP 11 PERCENT, DIVIDEND INCREASED

 BETHESDA, Md., Feb. 23 /PRNewswire/ -- The Washington Real Estate Investment Trust (WRIT) (AMEX: WRE) reported 1992 net income of $20,429,264 up 11 percent over $18,386,398 for 1991 (76 cents vs. 74 cents per share). Funds from operations (net income plus depreciation) was $23,850,876 for 1992, up 10 percent compared with $21,707,672 for 1991. Funds from operations is the basis for determining dividends.
 WRIT INCREASES DIVIDEND
 The trustees voted an 88 cents per share indicated annual dividend rate, up 5 percent over the prior rate of 84 cents. WRIT will pay a first quarter 1993 dividend of 22 cents per share on March 31, 1993, to shareholders of record March 17, 1993. This is the 126th consecutive dividend at equal to or increasing rates. Over the 23-year period, including 1993, dividends have increased 27 times.
 In May 1992, WRIT split its shares 3-for-2 and increased the indicated annual dividend rate to 84 cents per share. For the 15 years through 1992 the dividends grew at a 12 percent compound annual growth rate.
 Twenty-seven Consecutive Growth Years: 1992 was the 27th consecutive year that net income from operations increased, both in total dollars and per share, unmatched in the REIT industry, and puts WRIT among the top one fifth of 1 percent of all listed companies. The trust's return on average equity for 1992 was 15 percent.
 WRIT's overall occupancy for all groups of properties for the fourth quarter of 1992 and for the entire year was 93 percent, kept on course with a very basic disciplined, conservative operating philosophy. WRIT's portfolio is diversified in eight office buildings, 10 shopping centers, five apartment buildings and nine business centers.
 During 1992 WRIT sold $42,450,000 of its stock with a dividend yield of 5 percent. With the new cash equity, the trust purchased for all cash:
 -- Ballston: A New Downtown in Arlington: In June, WRIT purchased the Arlington Financial Center from Resolution Trust Corporation for $6,300,000. This Arlington, Va., property at 4420 N. Fairfax Drive, is in the heart of handsome, newly redeveloped Ballston, one block from the Metro stop. The 57,000 square foot five-story office building was 98 percent leased when purchased, and is now 100 percent leased. Tenants include the U.S. government (81 percent), Mount Vernon Weichert Realty (9 percent) and Household Bank, FSB, a subsidiary of Household Finance Corporation (8 percent).
 -- Old Town Alexandria: In July, WRIT purchased 515 King St. in the charming, vibrant Old Town section of Alexandria, Va., for $8,000,000. The seller had recently completed heavy, basic renovation. Strategically located across from the Alexandria Court House and a block from City Hall and lovely Market Square, 515 is home to Crestar Bank's major banking facility in Northern Virginia, which occupies 60 percent of the 78,600 square feet. The total property is 93 percent leased. WRIT's yield on this all-cash investment is 11 percent.
 -- New Town Montgomery Village: On Dec. 30, 1992, the trust purchased for $20.7 million the Montgomery Village Center, a community shopping center which dominates its trade area. Montgomery Village, a planned community of 38,000 residents, is a nationally acclaimed winner of many architectural awards. Average household income in the trade area is $61,600 per year with 89 percent of all households earning over $25,000 per year. Of the 200,000 square feet at the center, 170,000 square feet is retail which is 98 percent leased and includes Giant Food, Peoples Drug, Evans and SoFro Fabrics. The trust is continuing the lease up of the adjacent 30,000 square feet of Village Quarters office townhouse units. This center has a projected yield of 10 percent.
 "These acquisitions illustrate our philosophy of purchasing prime properties with good growth prospects," said B. Franklin Kahn, president of WRIT. "By paying all cash, we are able to purchase superbly located investments at lower prices and higher yields than were available a few years ago; new cash equity raised in the underwriting at a 5 percent cost has been used to purchase 10 percent and 11 percent yields on new properties. This yield spread is double that of most of our competition."
 NO MORE DEBT ... EITHER LONG-TERM OR SHORT-TERM
 On Jan. 22, 1993, WRIT paid off the $21 million short-term Dec. 29, 1992, bank loan used for the purchase of the Montgomery Village Center, and certain temporary investments which had been collateral for the loan were sold. The interest income and the realized gain from the sale of the temporary investments each exceeded the 4.6 percent fixed interest rate paid to the bank for the 25 days the loan was outstanding. After 15 years of zero short-term debt, WRIT borrowed for 25 days; and then returned to zero short-term debt, which philosophically is where the trust is likely to remain.
 WRIT has scheduled April 1, 1993, to pay its last remaining mortgage of $1.1 million. Then there will be zero long-term debt, zero short-term debt and a zero debt-to-equity ratio. This is the logical, consistent culmination of a disciplined long-term conservatism.
 DEBT AS A PERCENTAGE OF ASSETS REDUCED TO ZERO
 Dec. 31, 1966 -- 87 percent
 Dec. 31, 1971 -- 61 percent
 Dec. 31, 1976 -- 47 percent
 Dec. 31, 1981 -- 37 percent
 Dec. 31, 1986 -- 17 percent
 Dec. 31, 1991 -- 8 percent
 Dec. 31, 1992 -- 1 percent
 May 1, 1993 -- 0 percent
 After paying off all of its debt, the trust has $33 million cash for additional property acquisitions and capital improvements ... at the lowest cost in the REIT industry -- and with the strongest balance sheet -- a wonderful competitive advantage for future growth.
 WASHINGTON REAL ESTATE INVESTMENT TRUST
 Financial Highlights
 (Unaudited)
 Three Months Ended Dec. 31, 1992 1991
 Real estate revenue $ 8,600,313 $ 8,389,473
 Operating expenses and real
 estate taxes (2,626,512) (2,470,809)
 Depreciation (888,119) (848,059)
 Income from real estate 5,085,682 5,070,605
 General and administrative expense
 and interest expense (771,610) (1,000,273)
 Investment income 924,356 716,868
 Net income $ 5,238,428 $ 4,787,200
 Net income per share $0.19 $0.19
 Net Income $ 5,238,428 $ 4,787,200
 Depreciation 888,119 848,059
 Funds from operations $ 6,126,547 $ 5,635,259
 Cash dividends paid $ 5,923,936 $ 5,288,237
 Cash dividends paid per share $0.21 $0.21
 Average number of shares outstanding 28,209,219(B) 25,589,001(C)
 Year Ended Dec. 31, 1992 1991
 Real estate revenue $34,132,217 $33,311,399
 Operating expenses and real
 estate taxes (10,330,285) (10,088,701)
 Depreciation (3,421,612) (3,321,274)
 Income from real estate 20,380,320 19,901,424
 General and administrative expense
 and interest expense (3,261,919) (3,840,988)
 Investment income 3,310,863 2,325,962
 Net income $20,429,264 $18,386,398
 Net income per share $0.76 $0.74
 Net Income $20,429,264 $18,386,398
 Depreciation 3,421,612 3,321,274
 Funds from operations $23,850,876 $21,707,672
 Cash dividends paid $22,513,368 $19,672,408
 Cash dividends paid per share $0.84 $0.79
 Average number of shares outstanding 26,910,046(B) 24,707,825(C)
 As of Dec. 31, 1992 1991
 Cash and marketable securities $55,564,810 $40,862,086
 Real estate assets, at cost(A) 155,765,010 117,575,741
 Total assets, at cost(A) 216,133,860 163,100,087
 Mortgage notes payable 1,115,193 11,329,370
 Shareholders' equity 159,026,525 119,944,265
 Shareholders' equity, at cost(A) 189,487,143 147,303,260
 (A) At cost means adding back accumulated depreciation.
 (B) Additional 2,497,000 shares sold to public June 23, 1992.
 (C) Adjusted for 3-for-2 stock split May 29, 1992.
 -0- 2/23/93
 /CONTACT: Howard E. Cochran, vice president-finance, Washington Real Estate Investment Trust, 301-652-4300, or fax, 301-652-4303/
 (WRE)


CO: Washington Real Estate Investment Trust ST: Maryland IN: CST SU: DIV ERN

IH -- DC013 -- 9452 02/23/93 13:29 EST
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