Washington REIT Expands Credit Facilities to $600 Million - Analyst Blog
In a bid to enhance its liquidity position, Washington Real Estate Investment Trust WRE has replaced its two existing credit facilities worth $500 million with a new and expanded $600-million revolving unsecured credit facility. Led by Wells Fargo Bank National Association, KeyBank National Association and a syndicate of other lenders, the expanded facility will aid Washington Real Estate in meeting its long-term growth goals.
Washington Real Estate is a Washington, DC-based leading commercial and multifamily real estate investment trust (“REIT”). It owns income-producing real estate properties located principally in the Greater Washington-Baltimore Region. The support provided by lenders with this expanded facility will help the REIT execute its value-add investment strategies in a better way.
The expanded credit facility has a term period of four years and could be expanded for two more 6-month periods. The interest rate of this new credit facility will be determined on the basis of spread over the London Interbank Offered Rate (“LIBOR”). Calculated on the basis of the REIT’s unsecured debt rating, the spread over LIBOR is currently 100 basis points. Moreover, the new facility includes an accordion feature, through which it can further expand its size to $1 billion.
Washington Real Estate currently has a Zacks Rank #3 (Hold).
Investors interested in the REIT industry may consider stocks like Arbor Realty Trust Inc. ABR, Strategic Hotels & Resorts, Inc. BEE and CareTrust REIT, Inc. CTRE. While both Arbor Realty Trust and Strategic Hotels & Resorts sport a Zacks Rank #1 (Strong Buy), CareTrust REIT holds a Zacks Rank #2 (Buy).
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WASHINGTON REIT (WRE): Free Stock Analysis Report
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