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WRIT BUYS HERITAGE BUSINESS PARK IN ROCKVILLE, MD., ITS LARGEST COMMERCIAL PROPERTY AT A VERY LOW COST

 DIVIDEND INCREASED FOR SECOND TIME THIS YEAR FOR TOTAL 10 PERCENT
 KENSINGTON, Md., Nov. 9 /PRNewswire/ -- The Washington Real Estate Investment Trust (WRIT) (AMEX: WRE) has purchased its largest commercial property, the Heritage Business Park in Rockville, Md., comprised of five office/flex/retail buildings with 226,000 rentable square feet for $10,925,000 ($48.34 per square foot). WRIT anticipates an immediate yield of 11 percent on its total cost, including a 1994 substantial capital improvement program which will include lobby renovations, new pylon and exterior signage, improved parking lot lighting, extensive landscaping, elevator and heating/air conditioning enhancements.
 Heritage is the fourth all-cash acquisition for a total of $46 million since WRIT's June 1992 underwriting. The trust has zero debt, approximately $20 million in cash and short-term marketable investment securities and very substantial additional funds available. At the present time, there are several other properties under intense review by WRIT.
 The Heritage Business Park is in the Parklawn area of Rockville, the second largest city in Maryland and the county seat of Montgomery County; it is convenient to the White Flint Regional Shopping Mall, Twinbrook Metro station, the Capital Beltway (I-495) and the I-270 Corridor.
 The 132,000 population within a 3-mile radius has an average household income of $71,000. Rockville is a major employment center for retail, wholesale, distribution and offices, both private and public. The Nuclear Regulatory Commission (NRC) headquarters at White Flint Metro and the Food and Drug Administration (FDA) complex at Twinbrook Metro provide excellent anchors for the park.
 The Heritage Business Park is comprised of the Lexington Office Building, the Saratoga Office Building and the Brandywine Center, 47,000, 59,000 and 35,000 square feet, respectively, plus the Charleston Business Center, East and West, with 85,000 square feet of business/wholesale/flex/warehouse space. Heritage Business Park is 96 percent leased to approximately 55 tenants, the largest being the U.S. government (General Services Administration) with 18,000 square feet.
 WRIT is a self-administered equity real estate investment trust investing in income-producing properties in the greater Washington area. The trust owns a well-diversified portfolio consisting of 10 shopping centers, 11 office buildings, five high-rise apartment buildings and eight business centers.
 WRIT CONTINUES BOTH TO IMPROVE ITS OFFICE BUILDING OCCUPANCY RATES
 AND TO TAKE ADVANTAGE OF A TERRIBLE OFFICE MARKET
 BY ACQUIRING OFFICE BARGAINS
 The office buildings, thought by many to be avoided, have proven to be success stories for WRIT. The third quarter 1993 office occupancy rate was 96 percent compared with 89 percent for the third quarter of 1992.
 With long-term expertise in the Washington market, WRIT can pick office acquisitions with growth potential. Through its capital improvement (value added) program and hands-on leasing and management, WRIT upgrades its properties to make them more competitive in the market; and increases rent rates, occupancy rates and net income, even in a soft office building market.
 The two office buildings acquired in 1989 and 1990, both with 60 percent occupancy, were 99 percent and 90 percent occupied for the third quarter of 1993. The two office buildings acquired in 1992 at 93 percent and 98 percent occupancy increased to 99 percent and 100 percent occupied in the third quarter of 1993.
 DIVIDEND INCREASED SECOND TIME THIS YEAR ... 10 PERCENT TOTAL
 The trustees voted a 92 cents per share indicated annual dividend rate, up 5 percent over the immediately prior rate of 88 cents. The annual dividend was previously increased in March of this year by 4 cents, for a total 1993 rate increase of 10 percent.
 WRIT will pay a fourth quarter 1993 dividend of 23 cents per share on Dec. 31, 1993, to shareholders of record Dec. 16, 1993. This is the 129th consecutive dividend at equal to or increased rates. Over the 23 consecutive years of dividend increases, cash dividends have increased 28 times.
 B. Franklin Kahn, president of the trust, stated that, "The trust is very optimistic about the Heritage Business Park acquisition, the other potential property purchases and their positive impact on 1994 results."
 NINE MONTHS RESULTS UP
 WRIT reported net income of $17,628,342 for the nine months ended Sept. 30, 1993, up 16 percent over $15,190,986 for the comparable nine months of 1992 (62 cents vs. 57 cents per share). Net income includes the gain of $741,217 for the sale of WRIT's former headquarters building June 28, 1993. Funds from operations were $19,603,138 for the 1993 period, up from $17,724,480 for the comparable period of 1992. Funds from operations is the basis for determining dividends.
 For the third quarter Sept. 30, 1993, net income was $5,535,365 compared with $5,522,894 for the same quarter of 1992, both 20 cents per share. Higher net income and cash flow from real estate investments was offset by lower interest income from the trust's short-term investments.
 WASHINGTON REAL ESTATE INVESTMENT TRUST
 FINANCIAL HIGHLIGHTS
 (Unaudited)
 Three Months Ended Sept. 30,
 1993 1992
 Real estate rental revenue $9,918,856 $8,866,761
 Operating expenses
 and real estate taxes (3,058,448) (2,726,580)
 Depreciation (909,605) (870,698)
 Income from real estate 5,950,803 5,269,483
 General and administrative
 expense and interest expense (739,242) (747,350)
 Investment income 323,804 1,000,761
 Net income $5,535,365 $5,522,894
 Net income per share $ 0.20 $ 0.20
 Net income $5,535,365 $5,522,894
 Depreciation 909,605 870,698
 Funds from operations $6,444,970 $6,393,592
 Cash dividends paid $6,209,943 $5,923,923
 Cash dividends paid per share $ 0.22 $ 0.21
 Average number of shares
 outstanding 28,226,116 28,184,580
 WASHINGTON REAL ESTATE INVESTMENT TRUST
 FINANCIAL HIGHLIGHTS
 (Unaudited)
 Nine Months Ended Sept. 30,
 1993 1992
 Real estate rental revenue $29,390,834 $25,531,904
 Operating expenses
 and real estate taxes (8,796,141) (7,703,773)
 Depreciation (2,716,013) (2,533,494)
 Income from real estate 17,878,680 15,294,637
 General and administrative
 expense and interest expense (2,180,149) (2,490,158)
 Investment income 1,188,594 2,386,507
 Income before gain on sale
 of property 16,887,125 15,190,986
 Gain on sale of property 741,217 --
 Net income $17,628,342 $15,190,986
 Net income per share $ 0.62(A) $ 0.57
 Net income $17,628,342 $15,190,986
 Depreciation 2,716,013 2,533,494
 Gain on sale of property (741,217) --
 Funds from operations $19,603,138 $17,724,480
 Cash dividends paid $18,629,229 $16,589,432
 Cash dividends paid per share $ 0.66 $ 0.63
 Average number of shares
 outstanding 28,222,010(B) 26,473,827
 AS OF SEPT. 30
 Cash and marketable securities $29,567,403 $56,165,653
 Real estate assets, at cost(C) 158,970,486 134,499,766
 Total assets, at cost(C) 196,034,116 196,700,594
 Mortgage notes payable -- 2,109,937
 Shareholders' equity 158,212,307 159,685,488
 Shareholders' equity, at cost(C) 190,947,559 189,544,323
 (A) Includes $0.0263 per share gain on sale of property.
 (B) Additional 2,497,000 shares sold to public June 23, 1992.
 (C) At cost means adding back accumulated depreciation.
 -0- 11/09/93
 /CONTACT: Howard E. Cochran, vice president, finance, and chief financial officer, of Washington Real Estate Investment Trust, 301-929-5820/
 (WRE)


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

DT-MH -- DC018 -- 3670 11/09/93 11:59 EST
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Date:Nov 9, 1993
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