Washington Real Estate Investment Trust: DC Metro Stability And Redevelopments Will Fuel Long-Term Growth (NYSE:WRE)

Thesis

Washington Real Estate Investment Trust (WRE) (“WashREIT”) has exposure to an extremely stable market in the Washington DC metro area. Its properties cover ground in downtown DC, northern Virginia, and Maryland suburbs. The diversified REIT boasts multifamily, office, and retail holdings.

Management has de-risked its portfolio by transitioning to lower-cap rate, lower-risk, and higher-growth suburban multifamily properties. Capital recycling from high-cap rate to lower-cap rate properties has resulted in a short-term decrease in core funds from operations per share and an underperforming stock price. However, the company is well-positioned for the long term with a suburban multifamily focus.

The sector and market focus position the company to benefit from population and employment migration to the region, as well as a continued housing shortage. WashREIT is undervalued due to its diversified nature and recent core FFO per share declines. Suburban office is stable, and retail makes a small portion of

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EUR/CAD Could Hit 1.60 Even With Greater Oil Market Stability

The EUR/CAD currency pair, which expresses the value of the euro in terms of the Canadian dollar, is currently trading in a relatively steady fashion following a significant rise versus the start of the year. In January 2020, EUR/CAD opened from the 1.45 handle; the pair is currently trading at the 1.55 handle.

EUR/CAD Trading Range in 2020(Source: Trading View. The same applies to all subsequent candlestick charts presented hereafter.)

The significance of the wide departure is greater in broader context. For example, major FX pairs such as AUD/USD crashed significantly in the first quarter of 2020, and yet most recently they have made gains on the year (relative to the opening prices of January 2020). The fact that EUR is still trading firmly above this year’s opening price provides us with confirmation that EUR/CAD is not ready to return to its previous trading range.

Probably the most important reason is that

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