NYSE:WRE

Stock Analysis Report

Washington Real Estate Investment Trust

Executive Summary

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


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

-4.0%

WRE

-4.7%

US REITs

-7.6%

US Market


1 Year Return

12.1%

WRE

11.6%

US REITs

10.2%

US Market

Return vs Industry: WRE matched the US REITs industry which returned 11.6% over the past year.

Return vs Market: WRE exceeded the US Market which returned 10.2% over the past year.


Shareholder returns

WREIndustryMarket
7 Day-4.0%-4.7%-7.6%
30 Day-2.9%-1.5%-4.5%
90 Day-4.6%0.9%-0.6%
1 Year17.0%12.1%16.1%11.6%12.5%10.2%
3 Year1.8%-10.0%31.7%15.3%37.1%28.3%
5 Year31.8%6.8%52.7%21.3%60.8%43.2%

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?

28.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WRE ($29.65) is trading below our estimate of fair value ($41.31)

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 (87.6x) compared to the REITs industry average (36.3x).

PE vs Market: WRE is poor value based on its PE Ratio (87.6x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: WRE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WRE is good value based on its PB Ratio (1.7x) compared to the US REITs industry average (1.9x).


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?

-29.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WRE's earnings are forecast to decline over the next 3 years (-29.5% per year).

Earnings vs Market: WRE's earnings are forecast to decline over the next 3 years (-29.5% per year).

High Growth Earnings: WRE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WRE's revenue (5.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WRE's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WRE is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

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

-27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WRE has a large one-off gain of $51.6M impacting its December 31 2019 financial results.

Growing Profit Margin: WRE's current net profit margins (8.8%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: WRE's earnings have declined by -27.7% per year over the past 5 years.

Accelerating Growth: WRE's earnings growth over the past year (4233.3%) exceeds its 5-year average (-27.7% per year).

Earnings vs Industry: WRE earnings growth over the past year (4233.3%) exceeded the REITs industry 5%.


Return on Equity

High ROE: WRE's Return on Equity (2.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Washington Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: WRE has a high level of physical assets or inventory.

Debt Coverage by Assets: WRE's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: WRE's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if WRE has a sufficient allowance for bad loans.

Low Risk Liabilities: WRE reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if WRE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: WRE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if WRE has an appropriate level of bad loans.


Next Steps

Dividend

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

4.05%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Washington Real Estate Investment Trust before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.0%marketbottom25%1.5%markettop25%4.0%industryaverage3.7%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: WRE's dividend (4.05%) is higher than the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: WRE's dividend (4.05%) is in the top 25% of dividend payers in the US market (3.96%)


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 (71.8%), 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 (0.8% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Paul McDermott (57yo)

6.3yrs

Tenure

US$3,548,997

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 ($USD3.55M) is about average for companies of similar size in the US market ($USD4.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul McDermott
Chairman of Board6.3yrsUS$3.55m0.43% $10.5m
Stephen Riffee
Executive VP & CFO5yrsUS$1.88m0.12% $3.0m
Taryn Fielder
Senior VP2.9yrsUS$1.07m0.043% $1.0m
Andrew Leahy
Vice President of Investments5.3yrsno datano data
Wade Hammond
VP, Chief Accounting Officer & Treasurer4.6yrsno data0.020% $483.7k
Susan Gerock
Chief Information Officer & VP of Information Technology3.8yrsno datano data
Amy Hopkins
Vice President of Investor Relations0.6yrsno datano data
Deanna Schmidt
Senior Director of Marketing & Communications2.4yrsno datano data
Brian Guttman
Vice President of Human Resources4.1yrsno datano data
Edward Murn
Managing Director of Development & Multifamily Division0yrsno data0.027% $674.7k

4.1yrs

Average Tenure

51yo

Average Age

Experienced Management: WRE's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul McDermott
Chairman of Board6.3yrsUS$3.55m0.43% $10.5m
Edward Civera
Lead Independent Trustee1.1yrsUS$159.82k0.066% $1.6m
Thomas Nolan
Independent Trustee5.1yrsUS$161.65k0.023% $562.6k
William Byrnes
Independent Trustee9.8yrsUS$159.92k0.086% $2.1m
Benjamin Butcher
Independent Trustee5.6yrsUS$147.01kno data
Ellen Goitia
Independent Trustee2.7yrsUS$161.80k0.011% $273.7k
Anthony Winns
Independent Trustee8.6yrsUS$157.99k0.035% $861.1k

5.1yrs

Average Tenure

63yo

Average Age

Experienced Board: WRE's board of directors are considered experienced (5.1 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 not been meaningfully diluted in the past year.


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$2.459b
  • Market Cap: US$2.435b
  • Shares outstanding: 82.13m
  • 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. metro area. Backed by decades of experience, expertise and ambition, we create value by transforming insights into strategy and strategy into action. The Company's portfolio of 46 properties includes approximately 3.9 million square feet of commercial space and 6,861 multifamily apartment units. These 46 properties consist of 22 multifamily properties, 16 office properties, and 8 retail centers. Our shares trade on the NYSE and our company currently has an enterprise value of more than $3.5 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 23:52
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.