Washington Real Estate Investment Trust
Market Cap
US$1.8b
Last Updated
2020/07/12 23:57 UTC
Data Sources
Company Financials +
Executive Summary
WashREIT owns and operates uniquely positioned real estate assets in the Washington D.C.
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer and slightly overvalued.
Share Price & News
How has Washington Real Estate Investment Trust's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WRE has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-5.3%
WRE
-2.5%
US REITs
2.3%
US Market
1 Year Return
-20.5%
WRE
-11.6%
US REITs
6.7%
US Market
Return vs Industry: WRE underperformed the US REITs industry which returned -11.6% over the past year.
Return vs Market: WRE underperformed the US Market which returned 6.7% over the past year.
Shareholder returns
| WRE | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.3% | -2.5% | 2.3% |
| 30 Day | -4.4% | 0.7% | 7.4% |
| 90 Day | -9.2% | -1.0% | 17.9% |
| 1 Year | -16.8%-20.5% | -8.0%-11.6% | 9.0%6.7% |
| 3 Year | -21.4%-30.9% | 12.1%-1.7% | 36.6%27.7% |
| 5 Year | 1.8%-17.6% | 39.4%10.8% | 64.2%46.1% |
Price Volatility Vs. Market
How volatile is Washington Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
At US$22.15, Is Washington Real Estate Investment Trust (NYSE:WRE) Worth Looking At Closely?2 months ago | Simply Wall St
Is Washington Real Estate Investment Trust's (NYSE:WRE) CEO Paid Enough Relative To Peers?3 months ago | Simply Wall St
Should You Be Concerned About Washington Real Estate Investment Trust's (NYSE:WRE) ROE?Valuation
Is Washington Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?
34.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WRE ($22.07) is trading below our estimate of fair value ($33.48)
Significantly Below Fair Value: WRE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WRE is poor value based on its PE Ratio (45.4x) compared to the US REITs industry average (27.2x).
PE vs Market: WRE is poor value based on its PE Ratio (45.4x) compared to the US market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: WRE is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: WRE's PB Ratio (1.3x) is in line with the US REITs industry average.
Next Steps
Future Growth
How is Washington Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
16.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WRE's forecast earnings growth (16.5% per year) is above the savings rate (2.2%).
Earnings vs Market: WRE's earnings (16.5% per year) are forecast to grow slower than the US market (22.9% per year).
High Growth Earnings: WRE's earnings are forecast to grow, but not significantly.
Revenue vs Market: WRE's revenue (4.8% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: WRE's revenue (4.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WRE's Return on Equity is forecast to be low in 3 years time (1%).
Next Steps
Past Performance
How has Washington Real Estate Investment Trust performed over the past 5 years?
-36.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WRE has a large one-off gain of $61.0M impacting its March 31 2020 financial results.
Growing Profit Margin: WRE became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: WRE's earnings have declined by -36.9% per year over the past 5 years.
Accelerating Growth: WRE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: WRE has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (5.3%).
Return on Equity
High ROE: WRE's Return on Equity (3%) is considered low.
Next Steps
Financial Health
How is Washington Real Estate Investment Trust's financial position?
Financial Position Analysis
Short Term Liabilities: WRE's short term assets ($233.7M) exceed its short term liabilities ($64.6M).
Long Term Liabilities: WRE's short term assets ($233.7M) do not cover its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: WRE's debt to equity ratio (86.7%) is considered high.
Reducing Debt: WRE's debt to equity ratio has reduced from 142.9% to 86.7% over the past 5 years.
Debt Coverage: WRE's debt is not well covered by operating cash flow (11.2%).
Interest Coverage: WRE's interest payments on its debt are not well covered by EBIT (0.6x coverage).
Balance Sheet
Next Steps
Dividend
What is Washington Real Estate Investment Trust current dividend yield, its reliability and sustainability?
5.44%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WRE's dividend (5.44%) is higher than the bottom 25% of dividend payers in the US market (1.68%).
High Dividend: WRE's dividend (5.44%) is in the top 25% of dividend payers in the US market (4.6%)
Stability and Growth of Payments
Stable Dividend: WRE's dividend payments have been volatile in the past 10 years.
Growing Dividend: WRE's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (74%), WRE's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WRE's dividends in 3 years are forecast to be thoroughly covered by earnings (0.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Paul McDermott (58yo)
6.75yrs
Tenure
US$3,875,257
Compensation
Mr. Paul T. McDermott serves as the Chief Executive Officer, President and Trustee at Washington Real Estate Investment Trust since October 1, 2013 and has been its Chairman of Board since May 31, 2018. Pr ...
CEO Compensation Analysis
Compensation vs Market: Paul's total compensation ($USD3.88M) is about average for companies of similar size in the US market ($USD4.72M).
Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of Board | 6.75yrs | US$3.88m | 0.43% $7.8m | |
| Executive VP & CFO | 5.42yrs | US$2.05m | 0.12% $2.2m | |
| Senior VP | 3.33yrs | US$1.23m | 0.043% $780.2k | |
| Vice President of Investments | 5.67yrs | no data | no data | |
| VP, Chief Accounting Officer & Treasurer | 5yrs | no data | 0.020% $356.7k | |
| Chief Information Officer & VP of Information Technology | 4.25yrs | no data | no data | |
| Vice President of Investor Relations | 1yr | no data | no data | |
| Senior Director of Marketing & Communications | 2.83yrs | no data | no data | |
| Vice President of Human Resources | 4.5yrs | no data | no data | |
| Managing Director of Development & Multifamily Division | no data | no data | 0.027% $497.3k |
4.5yrs
Average Tenure
52yo
Average Age
Experienced Management: WRE's management team is considered experienced (4.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of Board | 6.75yrs | US$3.88m | 0.43% $7.8m | |
| Lead Independent Trustee | 1.5yrs | US$187.79k | 0.070% $1.3m | |
| Independent Trustee | 5.5yrs | US$161.72k | 0.027% $482.4k | |
| Independent Trustee | 10.17yrs | US$150.72k | 0.092% $1.7m | |
| Independent Trustee | 6yrs | US$148.55k | no data | |
| Independent Trustee | 3.08yrs | US$158.97k | 0.015% $264.9k | |
| Independent Trustee | 9yrs | US$159.47k | 0.039% $707.9k |
5.5yrs
Average Tenure
64yo
Average Age
Experienced Board: WRE's board of directors are considered experienced (5.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.
Top Shareholders
Company Information
Washington Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Washington Real Estate Investment Trust
- Ticker: WRE
- Exchange: NYSE
- Founded: 1960
- Industry: Diversified REITs
- Sector: Real Estate
- Implied Market Cap: US$1.817b
- Market Cap: US$1.817b
- Shares outstanding: 82.33m
- Website: https://www.washreit.com
Number of Employees
Location
- Washington Real Estate Investment Trust
- 1775 Eye Street, NW
- Suite 1000
- Washington
- District Of Columbia
- 20006
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WRE | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | May 1971 |
| WRI | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 1971 |
Biography
WashREIT owns and operates uniquely positioned real estate assets in the Washington D.C. market. Backed by decades of experience, expertise and ambition, we create value by transforming insights into strategy and strategy into action. As of April 22, 2020, the Company's portfolio of 45 properties includes approximately 3.7 million square feet of commercial space and 6,861 multifamily apartment units. These 45 properties consist of 22 multifamily properties, 15 office properties, and 8 retail centers. Our shares trade on the NYSE and our company currently has an enterprise value of approximately $3 billion. With a track record of driving returns and delivering satisfaction, we are a trusted authority in one of the nation's most competitive real estate markets.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/12 23:57 |
| End of Day Share Price | 2020/07/10 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.