Washington Real Estate Investment Trust (WRE) carried out a leasing activity for one of the buildings at Braddock Metro Center in Alexandria, Va. The leasing deal penned with Alexandria City School Board is for 85,000 square feet of space and a term of 15 years starting Jun 1, 2014.
The building – located at 1340 Braddock Place – will be wholly occupied by the School Board. Following this lease deal, Braddock Metro Center is 98.6% leased. As a matter of fact, the Braddock Metro Center – an office campus consisting of 4 office buildings – is positioned advantageously, just next to the Braddock Road Metro Station. Acquired in 2011, this office campus has undergone several renovations.
We believe that the long-term leasing deal will help shield Washington Real Estate from short-term market headwinds and aid in enjoying a steady source of revenue for a considerable period of time.
The Alexandria City School Board is in charge of implementing policies for Alexandria City Public Schools (ACPS) – that has 19 schools and caters to the education needs of over 13,500 students.
Washington Real Estate invests in income-producing properties in the greater Washington metro region. Improving real estate fundamentals and renovations made to Washington Real Estate’s portfolio have helped the company experience steady progress in leasing volume, rental rate growth, and enhanced occupancy.
The company reported core funds from operations (FFO) of 47 cents per share, in line with the Zacks Consensus Estimate and up 5% sequentially. It signed commercial leases totaling 417,615 square feet (103,513 square feet of new leases and 314,102 square feet of renewal leases) during the quarter. The leasing volume depicts the steady demand for the company’s properties.
Washington Real Estate currently carries a Zacks Rank #3 (Hold). REIT’s that are performing better and are worth a look include CubeSmart (CUBE), Highwoods Properties Inc. (HIW) and SL Green Realty Corp. (SLG). All the stocks carry a Zacks Rank #2 (Buy).
Note: FFO, a widely accepted and reported measure of the performance of REITs is derived by adding depreciation, amortization and other non-cash expenses to net income.
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