- Breaking ground on two previously announced apartment joint ventures
- 650 N. Glebe Road, Arlington, Virginia: 163 unit project with a $49.5 million budget, expected to break ground first quarter 2013 with substantial completion on or about fourth quarter 2014
- 1219 First Street, Alexandria, Virginia: 270 unit project with a $95.3 million budget, expected to break ground first quarter 2013 with substantial completion on or about first quarter 2015
- Continuing to upgrade existing properties, including lobby and common area renovations at 1901 Pennsylvania Avenue, 1220 19 th Street, 1140 Connecticut Avenue, 1600 Wilson Boulevard, 6110 Executive Boulevard and 51 Monroe Street, and multifamily unit renovations upon turnover
- Continuing to sell non-strategic assets, including an anticipated sale of the Atrium office building in Rockville, Maryland, in the first quarter
“On behalf of the shareholders and Board, I thank Skip for his numerous contributions during his 16 years with WRIT. When Skip came to WRIT, we owned only 47 properties. Since that time, WRIT has grown extensively and now owns 70 properties across the region. Since Skip took the reins as CEO, WRIT has successfully weathered the recession, executed the sale of its Industrial Division at a substantial gain, upgraded the quality of the portfolio by focusing investment inside the Beltway, and developed a highly qualified team of executives. I am delighted that Skip will continue with the company in the coming months as we pursue the sale of the Medical Office Division, and I thank him for his willingness to do so,” commented John P. McDaniel, Chairman of WRIT’s Board."As to my expected retirement, although I will greatly miss working with my WRIT family, I am looking forward to spending time with my real family after a continuous 29-year real estate career. I am expecting the sale of our Medical Office Division and reinvestment of the proceeds to represent my last major contribution to WRIT, and I am excited to work with our highly-capable executive team and outstanding employees to complete these initiatives. I have enjoyed my time at WRIT tremendously and want to thank our shareholders, the Board and our employees. The WRIT franchise has excelled in this marketplace for 53 years, and I have been involved for over 16 of those years, including serving as CEO since 2007. I am exceptionally proud of my involvement with the firm and look forward to watching WRIT continue to grow in the years ahead," said Mr. McKenzie. 2013 Guidance 2013 core FFO per fully diluted share is projected to be $1.82 - $1.90. Included in this projection are all of the above strategic initiatives, with the exception of the potential Medical Office Division sale.
The following assumptions are also incorporated into 2013 guidance:
- Same-store multifamily NOI growth is projected to range from 3% to 5%, with flat same-store occupancy
- Same-store retail NOI growth is projected to range from 1% to 3%, with same-store occupancy improving incrementally
- Same-store office NOI is projected to decrease by 1% to 2%, with same-store occupancy improving incrementally
- General and administrative expense is projected to be approximately $16.5 million, an increase over the third quarter 2012 run rate, due to the projected three-year long-term incentive compensation plan payout in the fourth quarter of 2013
- Interest expense is projected to be approximately $66 million, an increase over the third quarter 2012 run rate, due to the full year impact of the third quarter 2012 $300 million unsecured debt issuance, offset in part by recent mortgage prepayments totaling approximately $88.5 million, and capitalized interest on development
- Acquisition and disposition activities, including the effects of the proposed Medical Office Division sale and any potential reinvestment, are not included in guidance.
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Certain statements in this press release 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, the potential for federal government budget reductions, changes in general and local economic and real estate market conditions, the timing and pricing of lease transactions, the effect of the current credit and financial market conditions, the availability and cost of capital, fluctuations in interest rates, tenants' financial conditions, levels of competition, the effect of government regulation, the impact of newly adopted accounting principles, and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2011 Form 10-K and third quarter 2012 Form 10-Q. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.