Wall Street Finally Rewards A Deserving REIT by Lesley Hensell CarrAmerica Realty Corp., is pouring it on, with a 20 percent increase in funds from operations (FFO) for the second quarter. And at last, the company is being rewarded by Wall Street, which has pushed the stock (NYSE: CRE) to its highest point in more than a year. The self-administered and self-managed real estate investment focuses primarily on the acquisition, development, ownership and operation of office properties in growth markets across the United States. CarrAmerica’s financial results appear to be enduring, since the company scored similar financial results for the first half of the year, with FFO up almost 21 percent over the first half of last year. So what’s behind these impressive returns? “Continued strong, broad-based demand in all of our markets is fueling strong rental rate growth, with the West Coast market performance exceeding all expectations,” said Thomas Carr, CarrAmerica president and CEO. “Supply and demand fundamentals are excellent in all of our markets.” The numbers are good across the board. Both same-store occupancy and rental rates are up for Carr. Operating properties saw incredible average occupancy of 98 percent at June 30. Even more astounding, rental rates increased 26 percent on average on the rolling leases executed during the six months ended June 30. That’s what you get for investing heavily in San Francisco and other hot, hot, hot West Coast markets. Carr also is taking steps to boost its stock price. The company has bought back about $34 million of the $100 million authorized by its board for repurchase. And it seems to be working. The stock price dipped below $18 late last year. Since then, the price has risen steadily, this week beating the $30 level for the first time in a long time. Plus, there’s more room to grow, with a price-to-earnings ratio below 17 and the West Coast and Atlanta markets still humming along. In other news, WiredZone last week acquired a 350,000 square foot Seattle-area building as part of its bandwidth-intensive portfolio. WiredZone Holdings, based in Dallas, is in the process of assembling a nationwide portfolio of Class A buildings catering to high-tech and telecommunications tenants. “Our high level of connectivity will be unparalleled in Seattle’s suburban markets, and we can satisfy the needs of high-tech and telecommunications tenants with above-average floor-loading capacity and ceiling heights in excess of 14 feet,” said Vance Detwiler, director of acquisitions for WiredZone. So what makes these buildings special? They are designed to be ready at move-in for high-tech and telecom tenants who need things like access to high-bandwidth services, high electrical capacity, redundancy, high levels of security and backup generator pads. Look for more WiredZone acquisitions in the near future, as the firm expands and brands its portfolio nationwide. | 
