First Potomac Realty Trust (NYSE: FPO), a leader in the ownership, management, development and redevelopment of office and industrial properties in the greater Washington, D.C. region, today announced an updated strategic and capital plan. The Company is continuing to execute on its strategy of repositioning its portfolio to focus on high-quality office properties in the Washington, D.C. metropolitan region. Key aspects of the plan include:
- Exploring the sale of the Company’s industrial properties, consisting of approximately 4.3 million square feet, approximately 2.6 million square feet of which is located in Southern Virginia.
- Implementing targeted portfolio management initiatives to drive operating efficiencies and improve occupancy.
- Executing steps designed to increase balance sheet capacity and expand the sources of capital necessary to achieve investment-grade credit metrics over time.
- In connection with these initiatives, declaring a quarterly dividend of $0.15 per common share, which equates to an annualized dividend of $0.60 per common share, representing a 25% decrease from its prior annualized dividend of $0.80 per share.
The Company believes that the execution of these initiatives, which is already underway, will result in a portfolio with a greater concentration of high-quality office properties in the Washington, D.C. metropolitan region, improved occupancy and performance within the core portfolio, and additional financial flexibility.
“Over the past three years, we have significantly improved our portfolio through the acquisition and development of office properties in the Washington, D.C. metropolitan region. The updated strategic and capital plan we are providing today continues our evolution and will result in a more focused Company, with a growth-oriented portfolio and a stronger balance sheet. The steps identified in our plan are designed to position us in the coming years to be the leading owner of high-quality office properties in the region,” stated Douglas J. Donatelli, Chairman and Chief Executive Officer of First Potomac Realty Trust. “We believe our strengthened management team, increased focus on operations, and enhanced capital strategy position us to improve occupancy, increase sustainable portfolio cash flow going forward, and achieve a balance sheet that will provide access to multiple forms of attractively priced capital to support future growth initiatives.”