First Potomac Realty Trust

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First Potomac Realty Trust
Public
Traded as NYSEFPO
Industry Real Estate Investment Trusts
Founded 1997 (1997)
Headquarters Bethesda, Maryland
Key people
Robert Milkovich (CEO)
Revenue $126.2 Million (Annualized, as of June 30, 2016)
Total assets $1.32 Billion (as of June 30, 2016)
Website www.first-potomac.com

First Potomac Realty Trust is a United States-based self-managed real estate investment trust (REIT) that focuses on owning, operating, developing and redeveloping office and business park properties in the greater Washington, D.C. region.

As of March 31, 2016, the company's portfolio totaled 6.5 million square feet. The total leased portfolio consists of approximately 64% office and 36% business park and industrial properties, based on annualized cash basis rent.[1] The company's common shares are publicly traded on the New York Stock Exchange.

A key element of First Potomac's overarching strategy is its dedication to sustainability. Over one million square feet of First Potomac property is LEED Certified and approximately half of the portfolio's multi-story office square footage is LEED or Energy Star Certified.

Based in Bethesda, Maryland, the firm maintains regional offices in Washington, D.C., Germantown, Maryland; Columbia, Maryland; and Fairfax, Virginia.

History[edit]

The company was founded in 1997 by Douglas J Donatelli [2] and Nicholas R Smith [3] and began an acquisition program with the purchase of four properties totaling 762,000 square feet. The company's shares began trading on the NYSE on October 23, 2003 under the ticker symbol FPO (NYSE:FPO).

In 2009, First Potomac expanded its platform to include multi-story office properties and has made 23 investments totaling $746.6 million.[4]

In 2010, First Potomac acquired nine office properties throughout the DC region, including 500 First Street,[5] 1750 H Street,[6] 1211 Connecticut Ave, NW[7] and 440 First Street.[8] On December 3, 2013, First Potomac publicly announced that 440 First Street received its Leadership in Energy and Environmental Design (LEED) Platinum Certification, the 9th of its kind in the District.[9]

In 2011, the company purchased the Greyhound Bus Terminal site at 1005 First Street, NE in Washington, D.C. for approximately $46.75 million with the intent to redevelop the property.[10]

On September 4, 2012, the company appointed Andrew Blocher as the new Chief Financial Officer.[11]

On June 18, 2013, the company publicly announced the sale of the majority of its industrial properties for an aggregate total of $259 million. The company sold 23 institutional-quality properties totaling approximately 4 million square feet to Blackstone Real Estate Partners VII for $242 million. The company also sold I-66 Commerce Center, a 236,000 square foot property in Haymarket, VA, to Corporate Office Properties Trust for $17.5 million. The sale of the majority of its industrial portfolio allowed the company to focus primarily on the office and business park asset classes.[12]

On October 1, 2013, First Potomac acquired the third building at Redland Corporate Center for $30 million. Redland I is a six-story, 134,000 square foot office building located in Rockville, Maryland. The acquisition completes First Potomac's control of the fully leased office park and provides the opportunity to expand current tenants in future years.[13]

On April 8, 2014, the company announced the acquisition of 1401 K Street, NW in Washington, D.C. for $58 million. 1401 K is a twelve-story 117,093 square-foot office building located in downtown Washington, D.C. Considered one of the first art-deco office buildings in Washington, D.C., it is included in the National Register of Historic Places.[14]

On May 15, 2014, First Potomac announced the appointment of Robert Milkovich as Executive Vice President and Chief Operating Officer.[15]

In June, First Potomac acquired 1775 Wiehle Avenue, a 130,000 square foot, five-story, fully leased office building located in Reston, Virginia, for $41.0 million.

On September 24, 2014, the company acquired 11 Dupont Circle, NW, a 153,000 square foot, nine-story, office building in downtown Washington, D.C. for $89.0 million. The property is located one block from the Dupont Circle Metro station and includes approximately 12,000 square feet of retail space located on the ground level. The property is currently 100% leased to 15 tenants.[16]

Later that month, on September 30, First Potomac announced the appointment of Samantha Sacks Gallagher, ranked by Chambers USA in 2014 as one of America's Leading Lawyers for Business for REITs, as Executive Vice President, General Counsel and Secretary.[17]

On November 12, 2014, the company announced 840 First Street, NE is 98% leased. The property is an Energy Star Certified office building with a total of 248,536 square feet located adjacent to Union Station in Washington D.C.'s flourishing NoMa submarket.[18]

On February 11, 2015, First Potomac announced five new lease transactions totaling 27,283 square feet at two newly redeveloped locations: 440 First Street, NW and 1211 Connecticut Avenue, NW.

During the second quarter earnings release First Potomac announced a plan designed to improve performance and create shareholder value by commencing a process to accelerate the sale of at least $200 million of assets. The Company will explore the sale of certain development assets, as well as non-core assets and those assets where the Company feels that it has maximized value.[19] The Company intends to utilize the proceeds from dispositions to repurchase common shares under the previously announced share repurchase program, redeem the Company’s 7.750% Series A Cumulative Redeemable Perpetual Preferred Shares, in whole or in part, beginning in late January 2016 and/or repay outstanding indebtedness.[20]

On November 9, 2015 First Potomac announced that Robert Milkovich, Chief Operating Officer of First Potomac, has been appointed to the additional role of Chief Executive Officer and added to the Board of Trustees, effective immediately. This follows Douglas J. Donatelli's decision to resign as Chief Executive Officer and a Trustee of the Company, and Nicholas R. Smith's resignation from his position as Chief Investment Officer.

References[edit]

  1. ^ "Press Release - First Potomac Realty Trust, year 2014 results". ir.first-potomac.com. February 19, 2015. 
  2. ^ Reuters Contributor (2010-12-30). "People". Reuters. Retrieved 2011-12-05. 
  3. ^ Reuters Contributor (2010-12-30). "People". Reuters. Retrieved 2011-12-05. 
  4. ^ O’Connell, Jonathan (2011-08-07). "First Potomac buying spree nears $750 million". Washington Post. Retrieved 2011-11-14. 
  5. ^ "Press Release - First Potomac Realty Trust acquires fully leased office building". www.snl.com. June 30, 2010. 
  6. ^ "Press Release - First Potomac Realty Trust acquires 1750 H Street". www.snl.com. October 28, 2010. 
  7. ^ "Press Release - First Potomac Realty Trust purchase of 1211 Connecticut Avenue". www.snl.com. December 9, 2010. 
  8. ^ "Press Release - First Potomac Realty Trust". www.snl.com. 
  9. ^ "Press Release - First Potomac Realty Trust". www.snl.com. 
  10. ^ "Press Release - First Potomac Realty Trust". www.snl.com. 
  11. ^ http://dc.citybizlist.com/article/first-potomac-appoints-andrew-blocher-cfo
  12. ^ "First Potomac Closes $242M Sale". GlobeSt.com. 
  13. ^ "Press Release - First Potomac Realty Trust". ir.first-potomac.com. 
  14. ^ "Press Release - First Potomac Realty Trust". www.snl.com. 
  15. ^ "Press Release - First Potomac Realty Trust". www.snl.com. 
  16. ^ "Press Release - First Potomac Realty Trust". www.snl.com. 
  17. ^ "Press Release - First Potomac Realty Trust". www.snl.com. 
  18. ^ "Press Release - First Potomac Realty Trust". ir.first-potomac.com. 
  19. ^ "Press Release - First Potomac Realty Trust". ir.first-potomac.com. 
  20. ^ "Press Release - First Potomac Realty Trust". ir.first-potomac.com.