27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Washington Real Estate Investment Trust (NYSE:WRE) reported third-quarter earnings Oct. 26. The company's EPS of 4 cents was below expectations of 9 cents, while sales of $82.8 million also fell short of a $83.1-million expectation.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Stifel Nicolaus' John Guinee downgraded Washington Real Estate Investment Trust from Hold to Sell and decreased the price target from $33 to $28.
The Thesis
The REIT's 390,000 square feet of known office move-outs in mid-2019 are projected to reduce full year free funds from operations by approximately $13.2 million, or $0.17 per share, Guinee said in a Tuesday note. (See the analyst's track record here.)
The move-outs comprise around 10 percent of the company's 4-million-square-foot office portfolio, and they include the 310,00-square-foot Advisory Board in the second quarter of 2017, as well as a secondary location, and Blank Rome, an 80,000-square-foot tenant, in the third quarter, said Guinee.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
One of Washington Real Estate Investment Trust's largest assets, the 292,000-square-foot 2445 M Street, which was purchased for $181.4 million or $621 per square foot in 2008, could soon be sold for $117 million or $400-per-square foot, the analyst said. Stifel projects a $67-million decrease in net asset value estimates at the REIT, equivalent to 85 cents per share.
Due to the sale of the Braddock Metro Center and the Walker House Apartments, Guinee expects a rough first quarter for the REIT — unless a "large acquisition" is made in early 2018.
The Price Action
Washington Real Estate Investment Trust dropped almost 4 percent Tuesday.
Related Links:
Wells Fargo: 27 Stocks To Play Real Estate In 2018
KeyBanc's Guide To REITs In 2018: Expect 5-10% Returns
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.