Zacks_Analysts' Blog : Washington Real Estate Sheds Assets - Analyst Blog

Washington Real Estate Investment Trust (WRE) recently completed the sale of Northern Virginia Industrial Park (NVIP) II for $44.5 million. The asset sale marks the company’s fourth industrial portfolio disposition.

Earlier, Washington Real Estate accumulated approximately $235.8 million from the sale of its first three industrial portfolios. The company currently has one industrial portfolio remaining for sale. The concerned property encompasses 6100 Columbia Park Road and Dulles Business Park and is expected to be sold in November 2011 for approximately $69.7 million. The sales proceeds for the entire industrial portfolio are $350 million.

During the second quarter of 2011, the company reported FFO (fund from operations) of 50 cents per share, in line with the year-earlier level. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

In a bid to streamline its portfolio, the company has been acquiring high quality properties in the Washington, D.C.´s central business district as well as strategic locations in the region with strong demographics near major transportation and regional health care centers.

Washington Real Estate invests in income-producing properties in the greater Washington metro region. It owns a diversified portfolio of 75 properties spanning approximately 9 million square feet of commercial space and 2,540 residential units and land held for developments.

Washington Real Estate currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Boston Properties Inc (BXP),also holds a Zacks #3 Rank.