Exhibit 99.1
[LETTERHEAD OF WASHINGTON REAL ESTATE INVESTMENT TRUST]
NEWS RELEASE
FOR IMMEDIATE RELEASE April 23, 2001
Page 1 of 8
WASHINGTON REAL ESTATE INVESTMENT TRUST
1/st/ Quarter 2001 Funds From Operation Up 14%
Washington Real Estate Investment Trust (WRIT) reported today that Funds From
Operations (FFO) increased 14.1% to $16,942,000 for the quarter ended March 31,
2001 from $14,842,000 for the quarter ended March 31, 2000. FFO per share
increased 11.9% to $0.47 in the first quarter of 2001 from $0.42 in the first
quarter of 2000. FFO is the primary performance measure for the REIT industry.
Edmund B. Cronin, Jr., Chairman, President and CEO, stated that, "WRIT's strong
FFO growth is due to the excellent performance of recent acquisitions, combined
with the strong core portfolio net operating income increase of 8.6% for the
quarter ended March 31, 2001." WRIT's core portfolio excludes properties not
owned for the entirety of both periods being compared.
WRIT is a self-administered, self-managed, equity real estate investment trust
investing in income-producing properties in the greater Washington-Baltimore
region. The Trust owns a diversified portfolio of 59 properties consisting of
10 retail centers, 24 office properties, 15 industrial properties and 10
multifamily properties.
WRIT's streak of 35 consecutive years of increased earnings per share and 28
consecutive years of increased FFO per share growth spans 4 recessions. WRIT's
dividends have increased every year for 30 consecutive years. During these 30
years, WRIT's dividends have increased 36 times, a record unmatched by any
other publicly traded real estate investment trust. WRIT shares are publicly
traded on the New York Stock Exchange (symbol: WRE).
Certain statements in this press release and the supplemental disclosures
attached hereto are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements involve known
and unknown risks, uncertainties and other factors that may cause actual
results to differ materially. Such risks, uncertainties and other factors
include, but are not limited to, fluctuations in interest rates, availability
of raw materials and labor costs, levels of competition, the effect of
government regulation, the availability of capital, weather conditions and
changes in general and local economic and real estate market conditions and the
timing and pricing of lease transactions.
CONTINUED
FOR IMMEDIATE RELEASE April 23, 2001
Page 2 of 7
WASHINGTON REAL ESTATE INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(in thousands except per share data)
Quarter Ended March 31,
-----------------------
OPERATING RESULTS 2001 2000
- --------------------------------------------- ------------- --------------
Real estate rental revenue $ 35,324 $ 31,935
Real estate expenses (10,239) (9,372)
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25,085 22,563
Real estate depreciation and amortization (6,214) (5,430)
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Income from real estate $ 18,871 $ 17,133
Other income 199 149
Interest expense (6,676) (6,090)
General and administrative (1,666) (1,780)
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Income before gain on sale of real estate $ 10,728 $ 9,412
Gain on sale of real estate - 1,498
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Net Income $ 10,728 $ 10,910
============ ============
Income before gain on real estate per share (Basic) $ 0.30 $ 0.26
============ ============
Income before gain on real estate per share (Diluted) $ 0.30 $ 0.26
============ ============
Net income per share (Basic) $ 0.30 $ 0.31
============ ============
Net income per share (Diluted) $ 0.30 $ 0.31
============ ============
Income before gain on sale of real estate $ 10,728 $ 9,412
Real estate depreciation and amortization 6,214 5,430
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Funds from operations $ 16,942 $ 14,842
============ ============
Funds from operations per share (Basic) $ 0.47 $ 0.42
============ ============
Funds from operations per share (Diluted) $ 0.47 $ 0.42
============ ============
Dividends paid per share $ .3125 $ 0.2925
============ ============
Weighted average shares outstanding 35,777,563 35,733,793
Fully diluted weighted average shares
outstanding 36,163,873 35,763,470
As of As of
BALANCE SHEET DATA March 31, 2001 December 31, 2000
- ------------------ --------------------- -----------------------
Cash and temporary investments $ 5,075 $ 6,426
Real estate assets, at cost (1) 702,157 698,513
Total assets, at cost (1) 736,404 732,953
Lines of credit payable 0 0
Mortgage notes payable 86,057 86,260
Notes payable 265,000 265,000
Total liabilities 369,240 371,833
Shareholders' equity 258,967 258,656
Shareholders' equity, at cost (1) 365,593 359,562
(1) At cost means adding back accumulated depreciation
CONTINUED
Washington Real Estate Investment Trust
Q1 2001 Supplemental Disclosures
Page 3 of 7
WRIT Continues to Produce Significantly Higher FFO Per Share Growth Than the
- ----------------------------------------------------------------------------
REIT Industry
- -------------
As reflected in the following graph, WRIT's FFO per share growth, as compared to
the corresponding quarter in the preceding calendar year, continues to
significantly outperform the industry.
WRIT vs. REIT Industry FFO Per Share Growth
Over Last 8 Quarters
[GRAPH]
REIT
WRIT INDUSTRY
---- --------
Q2 1999 11.7% 8.8%
Q3 1999 11.8% 8.2%
Q4 1999 13.6% 7.9%
Q1 2000 12.2% 8.4%
Q2 2000 10.6% 8.5%
Q3 2000 15.8% 7.9%
Q4 2000 15.0% 7.5%
Q1 2001 12.5% N/A
Average 12.9% 8.2%
*WRIT growth is shown excluding accounting change to straight-line rents in Q4
1999. The Q2 2001 straight-line rents were $0.6 million net of reserves.
**REIT Industry data for Q2 1999 through Q4 2000 is actual FFO per share growth
per Credit Suisse First Boston Equity REIT Research. Q1 2001 Industry data is
not yet available and, therefore, the industry average is the seven quarter
average from Q2 1999 through Q4 2000.
Core Portfolio Operating Income (NOI) Growth and Rental Rate Growth - Q1 2001
- -----------------------------------------------------------------------------
vs. Q1 2000
- -----------
Including Straight Line Rents Excluding Straight Line Rents
----------------------------- -----------------------------
Rental Rate Rental Rate
----------- -----------
NOI Growth Growth NOI Growth Growth
---------- ------ ---------- ------
Sector
------
Apartments 7.5% 7.8% 7.3% 7.7%
Office Buildings 6.4% 5.2% 5.8% 4.9%
Retail Centers 9.1% 6.8% 8.0% 5.8%
Industrial/Flex Centers 17.1% 10.6% 13.1% 7.2%
---- ---- ---- ---
Overall Core Portfolio 8.6% 6.6% 7.5% 5.9%
Core portfolio operating expenses increased 5.9% in Q1 2001 vs. Q1 2000.
CONTINUED
Washington Real Estate Investment Trust
Q1 2001 Supplemental Disclosures
Page 4 of 7
Core Portfolio & Overall Occupancy Levels By Sector
- ---------------------------------------------------
Core Portfolio All Properties
------------------------------------------------------------------
1st QTR 1st QTR 1st QTR 1st QTR
Sector 2001 2000 2001 2000
- ------ ---- ---- ---- ----
Apartments 94.9% 97.1% 94.9% 97.1%
Office Buildings 98.3% 97.2% 98.0% 97.2%
Retail Centers 96.0% 94.9% 96.0% 94.6%
Industrial/Flex Centers 98.4% 95.4% 98.4% 95.4%
---- ---- ---- ----
Overall Portfolio 97.3% 96.7% 97.2% 96.6%
WRIT Continues to Produce Significantly Higher Core Portfolio NOI Growth Than
- -----------------------------------------------------------------------------
the REIT Industry
- -----------------
As reflected in the following graph, WRIT's core portfolio NOI growth, as
compared to the corresponding quarter in the preceding calendar year, continues
to significantly outperform the industry.
WRIT vs. REIT Industry
Core Portfolio NOI Growth
Over Last 8 Quarters
[GRAPH]
REIT
WRIT INDUSTRY
---- --------
Q2 1999 8.6% 5.3%
Q3 1999 6.8% 5.4%
Q4 1999 7.4% 5.6%
Q1 2000 9.3% 6.2%
Q2 2000 7.4% 6.3%
Q3 2000 10.4% 6.8%
Q4 2000 8.2% 6.8%
Q1 2001 7.5% N/A
Average 8.2% 6.1%
*WRIT growth is shown excluding accounting change to straight-line rents in Q4
1999. The Q1 2001 core portfolio straight-line rents were $0.6 million net of
reserves.
**REIT Industry Same Store NOI growth data is per Salomon Smith Barney Equity
REIT Research. Q1 2001 Industry data is not yet available and, therefore, the
industry average is the seven quarter average from Q2 1999 through Q4 2000.
CONTINUED
Washington Real Estate Investment Trust
Q1 2001 Supplemental Disclosures
Page 5 of 7
Straight Line Rents
- -------------------
The following disclosure is provided to improve comparability between Q1 2001
and prior quarters (all amounts except per share amounts are in $000's):
Including Straight Line Excluding Straight Line
Rents Rents
-------------------------------------------------------------------------
1st QTR 1st QTR 1st QTR 1st QTR
2001 2000 2001 2000
---- ---- ---- ----
Straight Line Rent Adjustment 635 367 N/A N/A
FFO 16,942 14,842 16,307 14,475
FFO Per Share $ 0.473 $ 0.415 $ 0.456 $ 0.405
Nominal FFO Per Share Growth 11.9% 12.5%
Unrounded FFO Per Share Growth 14.0% 12.6
Core Portfolio Operating Income
(NOI) Growth 8.6% 7.5%
Q1 2001 Commercial Leasing Activity
- -----------------------------------
In Q1 2001, WRIT executed leases for 162,000 square feet of commercial space at
a weighted average increase over the prior rent in place of 21.1% on a straight
line basis and 14.0% on a cash basis. Details by sector are as follows:
Cash Basis Cash Basis Cash Basis Straight Line
Previous New ---------- -------------
Sector Square Feet Face Rent Face Rent % Increase % Increase
- ------ ----------- ---------- --------- ---------- ----------
Office 87,015 $23.20 $26.36 13.6% 22.6%
Retail 26,720 10.20 12.17 19.3% 19.2%
Industrial/Flex 48,185 5.69 6.35 11.6% 12.8%
------- ------ ------ ---- ----
Overall 161,920 $15.84 $18.07 14.0% 21.1%
Avg Term Avg Tenant
Sector (Years) Imp/SF
- ------ ------- ------
Office 3.7 $ 4.49
Retail 1.8 .56
Industrial/Flex 2.5 .48
--- ------
Overall 3.0 $ 2.65
CONTINUED
Washington Real Estate Investment Trust
Q1 2001 Supplemental Disclosures
Page 6 of 7
Capital Improvements Summary
- ----------------------------
During Q1 2001, WRIT invested $3.2 million in real estate capital improvements.
A breakdown of these improvements is as follows (in 000's):
Accretive Capital Improvements
Acquisition Related $ 544
Expansions & Major Renovations 18
Tenant Improvements 938
------
Total Accretive Capital Improvements 1,500
Recurring Capital Improvements 1,705
------
Total Capital Improvements $3,205
Leasing Commissions Capitalized $ 290
March 31, 2001 Debt Summary
- ---------------------------
At March 31, 2001, WRIT's debt was as follows (in $millions):
Wtd Avg Wtd Avg
Amount Maturity (Yrs) Interest Rate
------ -------------- -------------
Secured $ 86.1 6.6 7.5%
Senior Notes & MTNs $265.0 8.3 7.4%
--------------------------------------
Subtotal $351.1 8.5 7.4%
Lines of Credit* $ 0
--------------------------------------
Total Debt $351.1 8.5 7.4%
*WRIT's Lines of Credit total $75 million of capacity at LIBOR+ 70bp.
On April 19, 2001 WRIT borrowed $43 million under its line of credit for the
acquisition of One Central Plaza ($44.4 million purchase price).
No more than $60 million of debt matures in any one year and less than $1
million matures in each year until 2003.
Supplemental Debt Information at March 31, 2001
- -----------------------------------------------
Debt to Total Market Capitalization: 29.4%
Earnings to Fixed Charges Ratio: 3.42x
Debt Service Coverage Ratio: 3.42x
CONTINUED
Washington Real Estate Investment Trust
Q1 2001 Supplemental Disclosures
Page 7 of 7
REIT Industry Issues
- --------------------
In light of recent issues raised in the REIT industry, WRIT makes the following
disclosures:
1. WRIT has no non-income producing land held for development.
2. WRIT has only one theatre lease in its portfolio. This lease runs
through 6/30/02 at rent that WRIT estimates to be less than 1/3 of
current market rent.
Conference Call Information
- ---------------------------
WRIT will conduct a Conference Call to discuss 1st Quarter Earnings on Tuesday,
April 24, 2001 at 11:00 A.M. Eastern Standard Time. Conference Call access
information is as follows:
USA Toll Free Number: 888-928-9529
International Toll Number: 312-470-0116
Pass Code: Washington REIT
Conference Leader: Mr. Larry Finger
A replay of the Conference Call will be available for two weeks commencing one
hour after the Conference Call concludes until May 8, 2001 at 5:00 P.M. Eastern
Standard Time. Instant Replay access information is as follows:
USA Toll Free Number: 800-627-3229
International Toll Number: 402-220-0226
A live on-demand webcast of the Conference Call will also be available on WRIT's
website at www.writ.com. An on-line playback of the webcast will be available
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at www.writ.com for 30 days following the Conference Call.
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END