- Washington DC is the most stable sector in the country, as the federal government is the largest employer.
- Management has prudently recycled capital by transitioning to a multifamily-dominated portfolio.
- Multifamily will benefit from the metro area's solid population growth, rent-attractive characteristics, and large delta between Class A and Class B rents. Significant multifamily renovations in the pipeline.
- Very attractive earnings multiple and NAV discount.
- Big risks remain in the office and retail sector. Long lease durations and coming lease commencements will boost occupancy and display stability in the sector.
For further details see:
Washington Real Estate Investment Trust: DC Metro Stability And Redevelopments Will Fuel Long-Term Growth