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WRIT INCREASES DIVIDEND, NET INCOME AND CASH FLOW TO RECORD LEVELS

WRIT INCREASES DIVIDEND, NET INCOME AND CASH FLOW TO RECORD LEVELS
    BETHESDA, Md., Nov. 12 /PRNewswire/ -- Washington Real Estate Investment Trust (WRIT) (AMEX: WRE) increased its annual dividend rate from $1.16 to $1.24, an increase of 7 percent.  This marks the 21st consecutive year of dividend increases.  The compound annual rate of increase over that period has been 12 percent.  WRIT's increased per share cash flow and net income in the third quarter can be ascribed to 126 new leases and tight cost control.
    The diversification of WRIT's real estate portfolio in 20 percent apartment buildings, 29 percent shopping centers, 17 percent business centers and 34 percent office buildings, allow the Trust to cope with any segment that is weak, because the different segments react differently to different economic causes at different times.  The overall average occupancy rate for the third quarter of 1991 was 94 percent, excluding the new 7700 Leesburg Pike office building in Tysons Corner, Va.  This office building was purchased for $60 per square foot at 60 percent occupancy, with confidence that occupancy would soon increase.  In the year since acquisition, 22 leases have been signed, increasing occupancy to 81 percent, well ahead of projections.
    B. Franklin Kahn, president of the Trust, stated, "I am pleased that 7700 is following a similar lease-up pattern as the 444 North Frederick Avenue office building which was also purchased for $68 per square foot at a 60 percent occupancy in 1989 and, after dropping as low as 27 percent, is now 82 percent leased."  Because of WRIT's intensive hands-on management and leasing, and the constant heavy remodeling, improvement and expansion of properties, WRIT not only leases up newly purchased properties, but also keeps the existing properties leased up, even in the current local market.  In 1991 WRIT has leased over 250,000 square feet of space to 126 tenants.
    The Trust's sale of $30 million of shares last May increased WRIT's cash available for investment to $42 million and has given the Trust an enormous competitive advantage in buying new investment properties with equity capital costing the Trust under 6 percent. Value Line of Nov. 8 points out that new equity purchases yielding 9 percent to 10 percent by WRIT could vastly benefit cash flow.
    For the third quarter ended Sept. 30, 1991, net income was $4,910,580 compared with $4,234,206 for the same quarter of 1990 (29 cents vs. 27 cents per share).  Cash flow (funds from operations) for the third quarter of 1991 was $5,745,113 compared with $4,886,595 for the third quarter of 1990 (34 cents vs. 32 cents per share).  For the nine months of 1991 ended Sept. 30, 1991, net income was $13,599,198 compared with $12,108,295 for the same nine months of 1990 (84 cents vs. 78 cents per share).  Cash flow for the nine months of 1991 was $16,072,413 compared with $14,390,597 for the nine months of 1990 (99 cents vs. 93 cents per share).
    WRIT's increased fourth quarter 1991 dividend, at the new rate of 31 cents per share, will be paid Dec. 30, 1991, to shareholders of record on Dec. 9, 1991.
    WRIT is proud to be included in the 1991 issue of America's Finest Companies.  They report that out of the more than 15,000 publicly-traded companies, only 24, including WRIT, compiled Earnings "All-Star" records by racking up 25 consecutive years of higher earnings per share.  WRIT is proud to join Johnson & Johnson, H.J. Heinz, Eli Lilly & Co., McDonald's Corp. and Wal-Mart Stores in this elite tiny fraction of the upper one percent.
    In the October 1991 issue of Kiplinger's Personal Finance Magazine WRIT was included as one of five top-of-the-line REITs in an article titled "Brighter Days Ahead for Real Estate?"  The article stated that WRIT and the other four REITs were investment-grade REITs with several common attributes:  strong management, clear mission, consistent track records and respectable balance sheets.  More specifically it stated that WRIT held trump cards with very little debt and $42 million in cash to cherry-pick bargain real estate property acquisitions.
               WASHINGTON REAL ESTATE INVESTMENT TRUST
                        Financial Highlights
                             (Unaudited)
    Three Months Ended Sept. 30             1991             1990
    Real estate revenue                 $8,582,411       $7,693,400
    Real estate taxes and operating
      expenses other than
      depreciation                      (2,670,446)      (2,495,817)
    Income from real estate before
      depreciation                       5,911,965        5,197,583
    General and administrative expense
      and interest expense                (939,085)        (903,697)
    Interest income                        772,233          592,709
    Income before depreciation           5,745,113        4,886,595
    Depreciation                          (834,533)        (652,389)
    Net income                          $4,910,580       $4,234,206
    Net income per share                      $.29             $.27
    Funds from operations (B)           $5,745,113       $4,886,595
    Funds from operations per share           $.34             $.32
    Cash dividends paid                 $4,946,974       $4,180,378
    Cash dividends paid per share             $.29             $.27
    Average number of shares
      outstanding                       17,058,530 (C)   15,482,687
    Nine Months Ended Sept. 30              1991             1990
    Real estate revenue                $24,921,926      $22,448,371
    Real estate taxes and operating
      expenses other than
      depreciation                      (7,617,892)      (7,156,447)
    Income from real estate before
      depreciation                      17,304,034       15,291,924
    General and administrative expense
      and interest expense              (2,840,715)      (2,736,530)
    Interest income                      1,609,094        1,835,203
    Income before depreciation          16,072,413       14,390,597
    Depreciation                        (2,473,215)      (2,282,302)
    Net income                         $13,599,198      $12,108,295
    Net income per share                      $.84             $.78
    Funds from operations (B)          $16,072,413      $14,390,597
    Funds from operations per share           $.99             $.93
    Cash dividends paid                $14,384,171      $12,540,836
    Cash dividends paid per share             $.87             $.81
    Average number of shares
      outstanding                       16,273,915 (C)   15,481,408
    As of Sept. 30
    Cash and marketable securities    $ 41,549,078     $ 22,103,775
    Real estate assets, at cost (A)    116,836,167      104,650,593
    Total assets, at cost (A)          162,824,194      130,950,585
    Mortgage notes payable              11,727,560       11,677,007
    Shareholders' equity               120,409,304       91,090,296
    Shareholders' equity, at cost (A)  147,283,962      115,218,852
    (A) At cost means adding back accumulated depreciation.
    (B) Funds from operations is net income plus depreciation.
    (C) Additional 1,500,000 shares sold to public May 16, 1991.
    -0-                   11/12/91
    /CONTACT:  Howard E. Cochran, vice president-finance, Washington Real Estate Investment Trust, 301-652-4300/
     (WRE) CO:  Washington Real Estate Investment Trust ST:  Maryland IN:  FIN SU:  DIV SB -- DC024 -- 3544 11/12/91 15:02 EST
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Date:Nov 12, 1991
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