Elme Communities · NYSE:ELME
Elme Communities — Washington Real Estate Investment Trust — Q1 2008 Earnings Presentation
28 slides from Elme Communities's earnings presentation, Apr 28, 2008
Slide 1: Supplemental Operating and Financial Data, First Quarter 2008
Exhibit 99.2 First Quarter 2008 Supplemental Operating and Financial Data for the Quarter Ended March 31, 2008 Contact: 6110 Executive Boulevard Sara Grootwassink Suite 800 Executive Vice President and Rockville, MD 20852 Chief Financial Officer (301) 984-9400 E-mail: sgrootwassink@writ.com (301) 98
Slide 2: Company Background and Highlights
Company Background and Highlights First Quarter 2008 Washington Real Estate Investment Trust (the "Company") is a self-administered, self-managed, equity real estate investment trust (REIT) investing in income-producing properties in the greater Washington metropolitan region. WRIT is diversified, a
Slide 3: Lansdowne Medical Office acquisition and portfolio overview
On February 28, 2008, WRIT entered into an agreement to acquire Lansdowne Medical Office Building, a five-story, 85,300 square foot medical office development currently under construction, for $19.5 million. The project is located at the intersection of Riverside Parkway and Lansdowne Boulevard in L
Slide 4: Net Operating Income Contribution by Sector – First Quarter 2008
Net Operating Income Contribution by Sector – First Quarter 2008 With investments in the multifamily, retail, industrial/flex, office and medical office segments, WRIT is uniquely diversified. This balanced portfolio provides stability during market fluctuations in specific property types. First Qua
Slide 5: Supplemental Financial and Operating Data Table of Contents
Supplemental Financial and Operating Data Table of Contents March 31, 2008 Schedule Page Key Financial Data Consolidated Statements of Operations 5 Consolidated Balance Sheets 6 Funds From Operations and Funds Available for Distribution 7 Earnings Before Interest Taxes Depreciation and Amortization
Slide 6: Consolidated Statements of Operations
Consolidated Statements of Operations (In thousands, except per share data) (unaudited) Three Months Ended OPERATING RESULTS 03/31/08 12/31/07 09/30/07 06/30/07 03/31/07 Real estate rental revenue $ 70,278 $ 67,528 $ 65,020 $ 63,255 $ 59,852 Real estate expenses (23,133) (21,271) (20,395) (19,542) (
Slide 7: Consolidated Balance Sheets
Consolidated Balance Sheets (In thousands) (unaudited) March 31, December 31, September 30, June 30, March 31, 2008 2007 2007 2007 2007 Assets Land $ 336,710 $ 328,951 $ 334,484 $ 322,733 $ 312,550 Income producing property 1,674,319 1,635,169 1,496,731 1,448,874 1,369,005 2,011,029 1,964,120 1,831,
Slide 8: Funds From Operations and Funds Available for Distribution
Funds From Operations and Funds Available for Distribution (In thousands, except per share data) (unaudited) Three Months Ended 3/31/2008 12/31/2007 9/30/2007 6/30/2007 3/31/2007 Funds From Operations(1) Net Income (loss) $ (1,488) $ 8,442 $ 34,390 $ 8,337 $10,712 Real estate depreciation and amorti
Slide 9: Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)
Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) (In thousands) (unaudited) Three Months Ended 03/31/08 12/31/07 09/30/07 06/30/07 03/31/07 EBITDA(1) Net income (loss) $ (1,488) $ 8,442 $ 34,390 $ 8,337 $10,712 Add: Interest expense 17,664 16,400 15,824 15,298 14,376 Real estate
Slide 10: Long-Term Debt Analysis
Long-Term Debt Analysis (In thousands, except per share amounts) March 31, December 31, September 30, June 30, March 31, 2008 2007 2007 2007 2007 Balances Outstanding Secured Conventional fixed rate $ 251,539 $ 252,484 $ 253,500 $ 254,323 $ 228,367 Secured total 251,539 252,484 253,500 254,323 228,3
Slide 11: Long-Term Debt Analysis (Continued)
Long-Term Debt Analysis (In thousands, except per share amounts) Continued from previous page Future Maturities of Debt Year Secured Debt Unsecured Debt Credit Facilities Total Debt Average Interest Rate 2008 $ 3,112 $ — $ — $ 3,112 5.4% 2009 54,285 — — 54,285 7.0% 2010 25,973 100,000 122,500 248,47
Slide 12: Capital Analysis
Capital Analysis (In thousands, except per share amounts) March 31, December 31, September 30, June 30, March 31, 2008 2007 2007 2007 2007 Market Data Shares Outstanding 46,716 46,682 46,669 46,665 45,045 Market Price per Share $ 33.42 $ 31.41 $ 33.18 $ 34.00 $ 37.42 Equity Market Capitalization $1,
Slide 13: Core Portfolio NOI Growth & Rental Rate Growth
Core Portfolio Net Operating Income (NOI) Growth & Rental Rate Growth 2008 vs. 2007 Cash Basis First Quarter(1) NOI Rental Rate Sector Growth Growth Multifamily 5.4% 2.5% Office Buildings 6.6% 2.5% Medical Office Buildings 1.5% 3.4% Retail Centers 6.9% 3.5% Industrial / Flex Properties 6.0% 3.1% Ove
Slide 14: Core Portfolio Net Operating Income (NOI) Summary
Core Portfolio Net Operating Income (NOI) Summary (In thousands) Three Months Ended March 31, 2008 2007 % Change Cash Basis: Multifamily $ 4,795 $ 4,548 5.4% Office Buildings 15,697 14,719 6.6% Medical Office Buildings 5,083 5,006 1.5% Retail Centers 8,201 7,673 6.9% Industrial/Flex 7,079 6,675 6.0%
Slide 15: Core Portfolio Net Operating Income (NOI) Detail
Core Portfolio Net Operating Income (NOI) Detail (In thousands) Three Months Ended March 31, 2008 Corporate and Multifamily Office Medical Office Retail Industrial Other Total Real estate rental revenue Core Portfolio $ 8,435 $24,267 $ 7,335 $10,646 $ 9,619 $ — $ 60,302 Non-core—acquired and in deve
Slide 16: Core Portfolio Net Operating Income (NOI) Detail, Q1 2007
Core Portfolio Net Operating Income (NOI) Detail (In thousands) Three Months Ended March 31, 2007 Corporate and Multifamily Office Medical Office Retail Industrial Other Total Real estate rental revenue Core Portfolio $ 8,173 $23,212 $ 7,433 $10,689 $ 9,060 $ — $ 58,567 Non-core—acquired and in deve
Slide 17: Core Portfolio & Overall Economic Occupancy Levels by Sector
Core Portfolio & Overall Economic Occupancy Levels by Sector Q1 2008 vs. Q1 2007 GAAP Basis Core Portfolio All Properties Sector 1st QTR 2008 1st QTR 2007 1st QTR 2008 1st QTR 2007 Multifamily 92.7% 90.6% 79.6% 90.6% Office Buildings 95.4% 92.6% 95.5% 92.8% Medical Office Buildings 98.4% 99.2% 97.9%
Slide 18: Commercial Leasing Summary
Commercial Leasing Summary Three months ended 3/31/08 1st Quarter 2008 Gross Leasing Square Footage Office Buildings 150,363 Medical Office Buildings 12,712 Retail Centers 17,401 Industrial Centers 89,086 Total 269,562 Weighted Average Term (yrs) Office Buildings 4.9 Medical Office Buildings 5.6 Ret
Slide 19: Commercial Leasing Summary (Continued)
Commercial Leasing Summary Continued from previous page Three months ended 3/31/08 1st Quarter 2008 Dollars per Total Dollars Square Foot Tenant Improvements Office Buildings $1,086,710 $ 7.23 Medical Office Buildings 107,795 8.48 Retail Centers — — Industrial Centers 327,875 3.68 Subtotal $1,522,38
Slide 20: 10 Largest Tenants—Based on Annualized Rent
10 Largest Tenants—Based on Annualized Rent March 31, 2008 Weighted Percentage Average of Aggregate Percentage Remaining Portfolio Aggregate of Aggregate Number of Lease Term Annualized Rentable Occupied Tenant Buildings in Months Rent Square Feet Square Feet World Bank 1 44 4.31% 210,354 2.09% Sunr
Slide 21: Industry Diversification
Industry Diversification March 31, 2008 Percentage Annualized of Aggregate Aggregate Percentage Base Rental Annualized Rentable of Aggregate Industry Classification (NAICS) Revenue Rent Square Feet Square Feet Professional, Scientific and Technical Services $ 46,015,955 22.31% 1,966,464 19.55% Ambul
Slide 22: Lease Expirations
Lease Expirations March 31, 2008 Percent of Average Percent of Number of Rentable Rentable Annualized Rental Annualized Year Leases Square Feet Square Feet Rent * Rate Rent * Office: 2008 67 278,726 7.88% $ 7,887,491 $28.30 7.73% 2009 105 490,217 13.87% 13,345,389 27.22 13.07% 2010 107 851,807 24.09
Slide 23: Acquisition and Disposition Summary
2007 Acquisition and Disposition Summary as of March 31, 2008 ($’s in thousands) Acquisition Summary March 31, Leased 2008 Square Percentage at Leased Acquisition Date Feet Acquisition Percentage Investment 6100 Columbia Park Road Landover, MD February 22, 2008 150,000 78% 78% $ 11,200 Total 150,000
Slide 24: 2008 Development Summary
2008 Development Summary as of March 31, 2008 ($’s in thousands) Total Rentable Percentage Anticipated Cash Anticipated Property and Square Feet Leased Total Cost to Construction Location or # of Units or Committed Cash Cost Date Completion Date Development The Clayborne Apartments 74 units & 2,700
Slide 25: Schedule of Properties
Schedule of Properties March 31, 2008 NET RENTABLE PROPERTIES LOCATION YEAR ACQUIRED YEAR CONSTRUCTED SQUARE FEET* Office Buildings 1901 Pennsylvania Avenue Washington, DC 1977 1960 97,000 51 Monroe Street Rockville, MD 1979 1975 210,000 515 King Street Alexandria, VA 1992 1966 76,000 The Lexington
Slide 26: Schedule of Properties (Retail, continued)
Frederick Crossing Frederick, MD 2005 1999/2003 295,000 Randolph Shopping Center Rockville, MD 2006 1972 82,000 Montrose Shopping Center Rockville, MD 2006 1970 143,000 Subtotal 2,022,000 1 Development on approximately 60,000 square feet of the center was completed in December 2006. 24
Slide 27: Schedule of Properties (Cont.)
Schedule of Properties (Cont.) March 31, 2008 NET RENTABLE PROPERTIES LOCATION YEAR ACQUIRED YEAR CONSTRUCTED SQUARE FEET* Multifamily Buildings * / # units 3801 Connecticut Avenue / 307 Washington, DC 1963 1951 179,000 Roosevelt Towers / 191 Falls Church, VA 1965 1964 170,000 Country Club Towers /
Slide 28: Supplemental Definitions
Supplemental Definitions March 31, 2008 Annualized base rent (ABR) is calculated as monthly base rent (cash basis) per the lease, as of the reporting period, multiplied by 12. Debt to total market capitalization is total debt from the balance sheet divided by the sum of total debt from the balance s
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