NYSE:WRE

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Washington Real Estate Investment Trust

Executive Summary

WashREIT owns and operates uniquely positioned real estate assets in the Washington D.C. More Details


Snowflake Analysis

Average dividend payer and fair value.

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

-1.9%

WRE

-0.4%

US REITs

-0.4%

US Market


1 Year Return

-36.0%

WRE

-14.3%

US REITs

18.3%

US Market

Return vs Industry: WRE underperformed the US REITs industry which returned -14.2% over the past year.

Return vs Market: WRE underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

WREIndustryMarket
7 Day-1.9%-0.4%-0.4%
30 Day-1.3%3.7%6.6%
90 Day-10.1%1.8%8.6%
1 Year-32.8%-36.0%-10.9%-14.3%21.0%18.3%
3 Year-32.5%-41.0%14.8%1.2%42.1%32.7%
5 Year-11.8%-28.7%40.1%12.0%85.6%64.7%

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

Valuation

Is Washington Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

38.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WRE ($19.25) is trading below our estimate of fair value ($31.25)

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 (39.1x) compared to the US REITs industry average (34.5x).

PE vs Market: WRE is poor value based on its PE Ratio (39.1x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: WRE is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: WRE is good value based on its PB Ratio (1.2x) compared to the US REITs industry average (1.4x).


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 5 analysts?

28.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WRE's forecast earnings growth (28% per year) is above the savings rate (2.2%).

Earnings vs Market: WRE's earnings (28% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WRE's revenue (4.5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: WRE's revenue (4.5% 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 (0.4%).


Next Steps

Past Performance

How has Washington Real Estate Investment Trust performed over the past 5 years?

-38.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WRE has a large one-off gain of $54.4M impacting its June 30 2020 financial results.

Growing Profit Margin: WRE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WRE's earnings have declined by 38% 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 (5.1%).


Return on Equity

High ROE: WRE's Return on Equity (3.2%) 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 ($157.6M) exceed its short term liabilities ($80.7M).

Long Term Liabilities: WRE's short term assets ($157.6M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: WRE's debt to equity ratio (83.7%) is considered high.

Reducing Debt: WRE's debt to equity ratio has reduced from 148% to 83.7% over the past 5 years.

Debt Coverage: WRE's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: WRE's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Washington Real Estate Investment Trust current dividend yield, its reliability and sustainability?

6.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WRE's dividend (6.23%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: WRE's dividend (6.23%) is in the top 25% of dividend payers in the US market (4.56%)


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 (58.2%), 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 covered by earnings (75.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Paul McDermott (58 yo)

7yrs

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 ($USD3.88M) is about average for companies of similar size in the US market ($USD4.43M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul McDermott
Chairman of Board7yrsUS$3.88m0.43%
$ 6.8m
Stephen Riffee
Executive VP & CFO5.67yrsUS$2.05m0.12%
$ 1.9m
Taryn Fielder
Senior VP3.58yrsUS$1.23m0.043%
$ 680.6k
Andrew Leahy
Vice President of Investments5.92yrsno datano data
Wade Hammond
VP, Chief Accounting Officer & Treasurer5.25yrsno data0.020%
$ 311.1k
Susan Gerock
Chief Information Officer & VP of Information Technology4.5yrsno datano data
Amy Hopkins
Vice President of Investor Relations1.25yrsno datano data
Deanna Schmidt
Senior Director of Marketing & Communications3.08yrsno datano data
Brian Guttman
Vice President of Human Resources4.75yrsno datano data
Edward Murn
Managing Director of Development & Multifamily Divisionno datano data0.027%
$ 433.8k
Anthony Chang
Vice President of Asset Managementno dataUS$156.45kno data
Stephen Burch
Controller2.75yrsno datano data

4.6yrs

Average Tenure

52yo

Average Age

Experienced Management: WRE's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul McDermott
Chairman of Board7yrsUS$3.88m0.43%
$ 6.8m
Edward Civera
Lead Independent Trustee1.75yrsUS$187.79k0.070%
$ 1.1m
Thomas Nolan
Independent Trustee5.75yrsUS$161.72k0.027%
$ 420.8k
William Byrnes
Independent Trustee10.42yrsUS$150.72k0.094%
$ 1.5m
Benjamin Butcher
Independent Trustee6.25yrsUS$148.55kno data
Ellen Goitia
Independent Trustee3.33yrsUS$158.97k0.015%
$ 231.0k
Anthony Winns
Independent Trustee9.25yrsUS$159.47k0.039%
$ 617.5k

5.8yrs

Average Tenure

64yo

Average Age

Experienced Board: WRE's board of directors are considered experienced (5.8 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 2.8%.


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$1.585b
  • Market Cap: US$1.585b
  • Shares outstanding: 82.36m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WRENYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1971
WRIDB (Deutsche Boerse AG)YesCommon StockDEEURMay 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 strat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 00:37
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.