In a report published Tuesday, MLV & Co analyst Jonathan Petersen initiated coverage on Washington Real Estate Investment Trust WRE with a Buy rating and $29.00 price target.
In the report, MLV & Co noted, “The ongoing shift from suburban to CBD among office properties will be dilutive in the near term, but is the right strategy to ensure long-term internal growth; WRE's portfolio in the CBD and inside the Beltway is very well located and makes up 57% of NOI. There is considerable NOI upside potential from redevelopment opportunities within this portfolio; the company has a solid balance sheet, with debt-to-total assets of 42% and fixed charge coverage of 3.0x; and while we expect asset sales to be dilutive, we believe the current NAV discount of 25% is far too aggressive.”
Washington Real Estate Investment Trust closed on Monday at $23.81.
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