Washington Real Estate Investment Trust (NYSE:WRE) Q3 2020 Earnings Conference Call - Final Transcript

Oct 30, 2020 • 11:00 am ET

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Washington Real Estate Investment Trust (NYSE:WRE) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Stephen E. Riffee

with preparing our buildings for re-entry and the cost savings that we expect to pass along to our tenants. We expect G&A including lease expenses to range from $23.5 to $24 million and interest expense to range from $37.5 million to $37.75 million.

As mentioned on previous calls, we've lowered our initial capital expenditure expectations, including lowering development spending. We now expect development expenditures to range from $30 million to $35 million. While our future multifamily renovation pipeline remains intact, the program remains suspended until the market allows for rent increases to deliver the appropriate ROI. We are pleased that nearly all of our future renovation potential is our strongest performing suburban assets which will likely recover sooner than urban markets post pandemic. And while market conditions remain highly uncertain, we feel confident in our ability to navigate these uncertain times over the near term, while retaining the operational flexibility necessary to bolster our long-term growth once operating conditions improve.

And with that, I'll now turn the call back over to Paul.

Executive
Paul T. McDermott

Thanks, Steve. In closing, while we are operating in a challenging environment, we remain confident in our ability to effectively manage through this period of uncertainty, while preserving the embedded growth of our assets. While we like others are dealing with an unprecedented pandemic, we have kept on executing, diligently strengthening the balance sheet, maintaining value, as well as preserving long-term growth opportunities.

At our current stock price, we believe that we offer a compelling value proposition for investors, with a 7% dividend yield on a dividend that we are covering, a strong liquidity position, our development and renovation pipeline that can and will be reactivated once conditions improve, and a solid long-term growth story. Now we would like to open the call to answer your questions.