Washington Real Estate Investment Trust Q1 2009 Earnings Call Transcript

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2009-04-28 16:33:15.0

Tags: Oppenheimer & Co., Call Transcript, Earnings, World Bank, Washington Real Estate Investment Trust, Free Trade, Finance, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Our first question comes from Mark Biffert with Oppenheimer & Co. Please state your question.

Mark Biffert - Oppenheimer & Co.

Good morning guys. Related to leasing, I have a couple questions just on what you're seeing from the discussions -- last quarter you had mentioned you're negotiating with the World Bank on their renewal next year. And across your other portfolio you have a sizeable renewal -- amount of renewing as well. I am just wondering what you're hearing from tenants and the likelihood that they will renew versus those that have said that they are giving backspace?

George McKenzie

Okay, good morning Mark. As it relates to World Bank, I am extremely optimistic that that's going to be signed very soon. I'd like to have said we would have it signed today but I can't say that right now. But I am extremely optimistic on that front.

With respect to the rest of rollover, it's actually for the balance of 2009 just to clarify, it's actually a very light year. We only have something on the order of about 6.5% of our economic lease income rolling for the balance of this year. So this year is actually a very light year.

As it relates to 2010 which I think is where you might be seeing a little bit of a bleep up in some of our exposure, one of the tenants is LaFarge out in the Western Corridor and actually Harman project -- I don't have any particular entail on that right now. We've just begun the process of trying to discuss with them that World Bank lease that I had just mentioned that actually is the biggest sort of participant in those 2010 rollovers. And those are probably the two ones that stick out more than any other. Yeah, across the street we have a 40,000 square feet lease at our Atrium office building and they have renewed. How long was that for Mike? That was for --

Michael Paukstitus

Another five years.

George McKenzie

Another five years. So, those are the three biggest exposures and with the dramatically biggest impact being the World Bank lease. That's a 148,000 square feet, and that's high $40s rents. So, that has a huge impact on that number.

Mark Biffert - Oppenheimer & Co.

How about the rest of the portfolios, the retail, the industrial portfolios?

 

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