Washington REIT Fell 8.8% As JPMC Analyst Forecasts Office Occupancy To Fall 300 BPS Through 2021

Back to The Great Recession … at least for the moment.

(Bloomberg) — Washington REIT fell as much as 8.8% after JPMorgan cut its price target and funds from operations estimate due to the Covid-19 pandemic.

WRE PT cut to $22 from $25; 2020 and 2021 FFO/share lowered by about 8% and 14%, respectively.

Analyst Anthony Paolone said he expects, apartment NOI to come down 2-3% in 2020 and another 1% in 2021, and retail NOI to fall by about one-third in 2Q 2020 before improving somewhat.

Expects apartment and retail non-payments to impact FFO immediately, but office non-payments will take longer to show up.

Assumes WRE will tap its ATM program in 2021 for about $100m in order to keep leverage in check.

Maintained underweight rating.

wre

And this was AFTER WRE had a negative FFO surprise on Feb 13.

washffo

WRE’s EPS doesn’t look too grand even before the COVID-19 struck.

washeps

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