First Potomac Realty Trust (
, a leading real estate investment trust (REIT), recently inked a
lease expansion deal with Windspeed Logistics, LLC. As per the
deal, First Potomac leased an extra space of 33,150 square feet at
the company's industrial property - Diamond Hill Distribution
Center - located in Chesapeake, Virginia.
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Diamond Hill Distribution Center comprises of four industrial
buildings and spans a total area of 712,500 square feet. The
property is located off the Bainbridge Submarket and around three
miles away from the company's other properties in Chesapeake. With
the lease expansion agreement, the distribution center is now 95%
Windspeed logistics deals in providing premium services in
warehousing, cross-docking, container drayage, distribution,
consolidation, import and export and truck brokerage. The company
first became a tenant of First Potomac when it leased an initial
27,000 square feet in November 2004 at the distribution center.
With the agreement, Windspeed will now occupy over 133,600 square
feet of space at the Diamond Hill Distribution Center.
First Potomac is likely to benefit from the agreement as it will
increase the company's rental revenues in the coming quarters. The
company expects that the transaction will likely deliver a strong
base for the long-term success of the agreement going forward. As a
matter of fact, the company has achieved one of the highest tenant
retention rates in the industry by providing better quality
services to its clients.
First Potomac focuses on ownership, management, development and
redevelopment of office and industrial properties in the greater
Washington D.C. and Norfolk regions. As of June 30, 2012, the
company's consolidated portfolio totaled approximately 14 million
square feet comprising of 42% office, 22% industrial properties and
36% business parks. The properties are leased to over 600 tenants,
which includes several high class tenants such as
Ameriprise Financial Inc. (
, Stratford University and A. J. Dwoskin & Associates.
The company, which competes with the likes of
First Industrial Realty Trust Inc. (
, is expected to release its third-quarter 2012 results on October
25. The Zacks Consensus Estimate for third quarter FFO (fund from
operations) is currently pegged at 28 cents per share.
We currently have a long-term Neutral recommendation on First
Potomac. It also carries a short-term Zacks #3 Rank (Hold).
Note: FFO, a widely accepted and reported measure of the
performance of REITs is derived by adding depreciation,
amortization and other non-cash expenses to net income.