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.
And this was AFTER WRE had a negative FFO surprise on Feb 13.
WRE’s EPS doesn’t look too grand even before the COVID-19 struck.