WASHINGTON REAL ESTATE INVESTMENT TRUST - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

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EX-99.1 - EXHIBIT 99.1 - WASHINGTON REAL ESTATE INVESTMENT TRUST	dex991.htm
8-K - FORM 8-K - WASHINGTON REAL ESTATE INVESTMENT TRUST	d8k.htm

Exhibit 99.2

First Quarter 2011

Supplemental Operating and Financial Data

for the Quarter Ended March 31, 2011


Contact:		6110 Executive Boulevard

William T. Camp		Suite 800

Executive Vice President and		Rockville, MD 20852

Chief Financial Officer		(301) 984-9400

E-mail: bcamp@writ.com		(301) 984-9610 fax

Washington Real Estate Investment Trust (“WRIT”) is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington metro region. WRIT is diversified, as it invests in office, medical office, industrial/flex, retail, and multifamily properties and land for development.

In the first quarter of 2011, WRIT acquired two downtown Washington, DC office assets. 1140 Connecticut Avenue is a twelve story, 184,000 square foot office building with a three level parking garage. The purchase price was $80.25 million. The property was 99% leased at the time of purchase to 25 office tenants and four retail tenants. It is located near the intersection of Connecticut Avenue and M Street in the heart of Washington’s “Golden Triangle” Central Business District, less than one block from the Farragut North Metro Station (Red Line) and two blocks from the Farragut West Metro Station (Blue and Orange Lines). WRIT funded this acquisition using available cash and its line of credit, and expects to achieve a first year unleveraged yield on 6.0% on a cash basis.

The second downtown office acquisition, 1227 25th Street, is an eight story, 130,000 square foot building with a two level parking garage. The purchase price was $47.0 million. The property was 72% leased at the time of purchase to the GSA and law firm tenants. It is located near the corner of 25th and M Streets in Washington’s West End submarket, immediately adjacent to WRIT’s 2445 M Street office building acquired in 2008. WRIT funded this acquisition using available cash and its line of credit, and projects a stabilized cash yield of 8.7%.

Subsequent to quarter end, WRIT completed the sale of Dulles Station West Phase I, a 180,000 square foot office building in Herndon, Virginia, for $58.8 million. WRIT acquired the land for Dulles Station West Phases I and II in 2005 and completed construction on Phase I in 2007. It is 100% leased to tenants including IBM and National Student Clearinghouse. Phase II, which was not included in the transaction, is zoned for future development of a 340,000 square foot office building.

WRIT signed commercial leases for 416,000 square feet with an average lease term of 4.9 years. The average rental rate increase on new and renewal leases was -0.6% on a GAAP basis and -7.5% on a cash basis. Commercial tenant improvement costs were $3.09 per square foot and leasing costs were $3.56 per square foot for the quarter.

As of March 31, 2011, WRIT owned a diversified portfolio of 87 properties totaling approximately 11 million square feet of commercial space and 2,540 residential units, and land held for development. These 87 properties consist of 27 office properties, 18 medical office properties, 16 industrial/flex properties, 15 retail centers and 11 multifamily properties. WRIT shares are publicly traded on the New York Stock Exchange (NYSE:WRE).

With investments in the office, medical office, industrial/flex, retail and multifamily segments, WRIT is uniquely diversified. This balanced portfolio provides stability during market fluctuations in specific property types.

*	Excludes discontinued operations:

Held for Sale Properties: Dulles Station Phase I.

Certain statements in the supplemental disclosures which follow are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to, the potential for federal government budget reductions, changes in general and local economic and real estate market conditions, the timing and pricing of lease transactions, the effect of the current credit and financial market conditions, the availability and cost of capital, fluctuations in interest rates, tenants’ financial conditions, levels of competition, the effect of government regulation, the impact of newly adopted accounting principles, and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2010 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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Schedule	Page

Key Financial Data
Consolidated Statements of Operations		4
Consolidated Balance Sheets		5
Funds From Operations and Funds Available for Distribution		6
Adjusted Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)		7

Capital Analysis
Long-Term Debt Analysis		8-9
Debt Covenant Compliance		10
Capital Analysis		11

Portfolio Analysis
Same-Store Portfolio Net Operating Income (NOI) Growth & Rental Rate Growth		12
Same-Store Portfolio Net Operating Income (NOI) Summary		13
Same-Store Portfolio Net Operating Income (NOI) Detail for the Quarter		14-15
Net Operating Income (NOI) by Region		16
Same-Store Portfolio & Overall Physical Occupancy Levels by Sector		17
Same-Store Portfolio & Overall Economic Occupancy Levels by Sector		18

Tenant Analysis
Commercial Leasing Summary		19
10 Largest Tenants - Based on Annualized Base Rent		20
Industry Diversification		21
Lease Expirations as of March 31, 2011		22

Growth and Strategy
2011 Acquisition Summary		23

Appendix
Schedule of Properties		24-25
Supplemental Definitions		26

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	Three Months Ended
OPERATING RESULTS	03/31/11			12/31/10			09/30/10			06/30/10			03/31/10

Real estate rental revenue	$	78,155		$	74,012		$	73,585		$	72,402		$	73,551
Real estate expenses		(26,088	)		(23,456	)		(24,164	)		(23,172	)		(26,169	)

		52,067			50,556			49,421			49,230			47,382

Real estate depreciation and amortization		(24,750	)		(23,384	)		(23,327	)		(22,720	)		(22,587	)

Income from real estate		27,317			27,172			26,094			26,510			24,795

Other income		306			318			289			297			289
Acquisition costs		(1,649	)		(709	)		12			(409	)		(55	)
Gain from non-disposal activities		—			3			4			—			—
Gain (loss) on extinguishment of debt		—			(8,896	)		(238	)		—			(42	)
Interest expense		(17,126	)		(17,801	)		(16,965	)		(16,785	)		(16,838	)
General and administrative		(3,702	)		(3,951	)		(3,153	)		(3,519	)		(3,783	)

Income (loss) from continuing operations		5,146			(3,864	)		6,043			6,094			4,366

Discontinued operations:
Income (loss) from operations of properties sold or held for sale		(458	)		822			615			985			899
Gain on sale of real estate		—			13,657			—			7,942			—

Income from discontinued operations		(458	)		14,479			615			8,927			899

Net income		4,688			10,615			6,658			15,021			5,265
Less: Net income from noncontrolling interests		(23	)		(24	)		(33	)		(27	)		(49	)

Net income attributable to the controlling interests	$	4,665		$	10,591		$	6,625		$	14,994		$	5,216


Per Share Data
Net income attributable to the controlling interests	$	0.07		$	0.16		$	0.10		$	0.24		$	0.09

Fully diluted weighted average shares outstanding		65,907			64,536			63,055			61,287			60,001

Percentage of Revenues:
Real estate expenses		33.4	%		31.7	%		32.8	%		32.0	%		35.6	%
General and administrative		4.7	%		5.3	%		4.3	%		4.9	%		5.1	%

Ratios:
Adjusted EBITDA / Interest expense		2.8 x			2.7 x			2.8 x			2.8 x			2.7 x

Income from continuing operations attributable to the controlling interest/Total real estate revenue		6.6	%		-5.3	%		8.2	%		8.4	%		5.9	%

Net income attributable to the controlling interest/Total real estate revenue		6.0	%		14.3	%		9.0	%		20.7	%		7.1	%

Note: Certain prior quarter amounts have been reclassified to conform to the current quarter presentation.

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	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010

Assets
Land	$	475,458		$	432,149		$	403,333		$	403,315		$	393,917
Income producing property		2,013,854			1,938,629			1,875,405			1,867,057			1,813,721

		2,489,312			2,370,778			2,278,738			2,270,372			2,207,638
Accumulated depreciation and amortization		(555,578	)		(534,570	)		(514,337	)		(494,127	)		(474,631	)

Net income producing property		1,933,734			1,836,208			1,764,401			1,776,245			1,733,007
Development in progress, including land held for development		26,263			26,240			26,103			25,952			25,502

Total real estate held for investment, net		1,959,997			1,862,448			1,790,504			1,802,197			1,758,509
Investment in real estate held for sale, net		40,868			41,892			75,684			76,385			90,937
Cash and cash equivalents		12,480			78,767			262,413			13,338			10,758
Restricted cash		24,316			21,552			19,858			21,567			19,035
Rents and other receivables, net of allowance for doubtful accounts		53,278			49,227			49,171			46,072			45,766
Prepaid expenses and other assets		108,042			96,466			92,878			85,246			79,105
Other assets related to properties sold or held for sale		17,231			17,529			20,471			22,035			22,866

Total assets	$	2,216,212		$	2,167,881		$	2,310,979		$	2,066,840		$	2,026,976


Liabilities and Equity
Notes payable	$	753,692		$	753,587		$	930,201		$	689,007		$	688,358
Mortgage notes payable		379,333			380,171			381,109			381,929			382,735
Lines of credit/short-term note payable		160,000			100,000			100,000			107,000			110,000
Accounts payable and other liabilities		60,129			51,036			53,854			54,169			52,903
Advance rents		12,722			12,589			10,586			10,196			9,489
Tenant security deposits		10,040			9,418			9,418			9,299			9,469
Other liabilities related to properties sold or held for sale		480			222			951			22,945			23,751

Total Liabilities		1,376,396			1,307,023			1,486,119			1,274,545			1,276,705


Equity
Shares of beneficial interest, $0.01 par value; 100,000 shares authorized		660			659			642			625			607
Additional paid-in capital		1,130,297			1,127,825			1,074,308			1,020,768			966,952
Distributions in excess of net income		(293,860	)		(269,935	)		(251,964	)		(230,942	)		(219,094	)
Accumulated other comprehensive income (loss)		(1,057	)		(1,469	)		(1,906	)		(1,949	)		(2,004	)

Total shareholders’ equity		836,040			857,080			821,080			788,502			746,461
Noncontrolling interests in subsidiaries		3,776			3,778			3,780			3,793			3,810

Total equity		839,816			860,858			824,860			792,295			750,271

Total liabilities and equity	$	2,216,212		$	2,167,881		$	2,310,979		$	2,066,840		$	2,026,976

Total Debt / Total Market Capitalization		0.39:1			0.38:1			0.41:1			0.41:1			0.39:1

Note: Certain prior quarter amounts have been reclassified to conform to the current quarter presentation.

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	Three Months Ended
	3/31/2011			12/31/2010			9/30/2010			6/30/2010			3/31/2010
Funds from operations⁽¹⁾
Net income (loss) attributable to the controlling interests	$	4,665		$	10,591		$	6,625		$	14,994		$	5,216
Real estate depreciation and amortization		24,750			23,384			23,327			22,720			22,587
Gain from non-disposal activities		—			(3	)		(4	)		—			—
Discontinued operations:
Gain on sale of real estate		—			(13,657	)		—			(7,942	)		—
Real estate depreciation and amortization		499			807			951			949			1,021

Funds From Operations (FFO)	$	29,914		$	21,122		$	30,899		$	30,721		$	28,824

Loss (gain) on extinguishment of debt		—			8,896			238			—			42
Real estate impairment		599			—			—			—			—
Acquisition costs		1,649			709			(12	)		409			55

Core FFO ⁽³⁾	$	32,162		$	30,727		$	31,125		$	31,130		$	28,921


FFO per share - basic	$	0.45		$	0.33		$	0.49		$	0.50		$	0.48
FFO per share - fully diluted	$	0.45		$	0.33		$	0.49		$	0.50		$	0.48

Core FFO per share - fully diluted	$	0.49		$	0.48		$	0.49		$	0.51		$	0.48

Funds available for distribution⁽²⁾
FFO	$	29,914		$	21,122		$	30,899		$	30,721		$	28,824
Non-cash (gain)/loss on extinguishment of debt		—			2,922			238			—			42
Tenant improvements		(2,370	)		(6,373	)		(2,863	)		(2,331	)		(2,012	)
External and internal leasing commissions capitalized		(2,232	)		(2,089	)		(3,387	)		(1,767	)		(2,268	)
Recurring capital improvements		(691	)		(1,698	)		(1,377	)		(1,999	)		(864	)
Straight-line rent, net		(657	)		(951	)		(1,099	)		(812	)		(608	)
Non-cash fair value interest expense		179			345			760			783			776
Non-real estate depreciation and amortization		874			889			1,094			993			993
Amortization of lease intangibles, net		(278	)		(437	)		(413	)		(405	)		(562	)
Amortization and expensing of restricted share and unit compensation		1,257			1,553			1,311			1,355			1,633
Real estate impairment		599			—			—			—			—

Funds Available for Distribution (FAD)	$	26,595		$	15,283		$	25,163		$	26,538		$	25,954

Cash loss (gain) on extinguishment of debt		—			5,974			—			—			—
Acquisition costs		1,649			709			(12	)		409			55

Core FAD ⁽⁴⁾	$	28,244		$	21,966		$	25,151		$	26,947		$	26,009


FAD per share - basic	$	0.40		$	0.24		$	0.40		$	0.43		$	0.43
FAD per share - fully diluted	$	0.40		$	0.24		$	0.40		$	0.43		$	0.43

Core FAD per share - fully diluted	$	0.43		$	0.34		$	0.40		$	0.44		$	0.43

Common dividend per share	$	0.4338		$	0.4338		$	0.4325		$	0.4325		$	0.4325

Average shares - basic		65,885			64,536			62,894			61,171			59,898
Average shares - fully diluted		65,907			64,536			63,055			61,287			60,001

⁽¹⁾

Funds From Operations (“FFO”) - The National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) defines FFO (April, 2002 White Paper) as net income (computed in accordance with generally accepted accounting principles (“GAAP”)) excluding gains (or losses) from sales of property plus real estate depreciation and amortization. We consider FFO to be a standard supplemental measure for equity real estate investment trusts (“REITs”) because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which historically assumes that the value of real estate assets diminishes predictably over time. Since real estate values have instead historically risen or fallen with market conditions, we believe that FFO more accurately provides investors an indication of our ability to incur and service debt, make capital expenditures and fund other needs. FFO is a non-GAAP measure.

⁽²⁾

Funds Available for Distribution (“FAD”) is calculated by subtracting from FFO (1) recurring expenditures, tenant improvements and leasing costs, that are capitalized and amortized and are necessary to maintain our properties and revenue stream and (2) straight line rents, then adding (3) non-real estate depreciation and amortization, (4) non-cash fair value interest expense and (5) amortization of restricted share compensation, then adding or subtracting the (6) amortization of lease intangibles, (7) real estate impairment and (8) non-cash gain/loss on extinguishment of debt, as appropriate. FAD is included herein, because we consider it to be a measure of a REIT’s ability to incur and service debt and to distribute dividends to its shareholders. FAD is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs.

⁽³⁾

Core Funds From Operations (“Core FFO”) is calculated by adjusting FFO for the following items (which we believe are not indicative of the performance of WRIT’s operating portfolio and affect the comparative measurement of WRIT’s operating performance over time): (1) gains or losses on extinguishment of debt, (2) costs related to the acquisition of properties and (3) property impairments, as appropriate. These items can vary greatly from period to period, depending upon the volume of our acquisition activity and debt retirements, among other factors. We believe that by excluding these items, Core FFO serves as a useful, supplementary measure of WRIT’s ability to incur and service debt, and distribute dividends to its shareholders. Core FFO is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs.

⁽⁴⁾

Core Funds Available for Distribution (“Core FAD”) is calculated by adjusting FAD for the following items (which we believe are not indicative of the performance of WRIT’s operating portfolio and affect the comparative measurement of WRIT’s operating performance over time): (1) gains or losses on extinguishment of debt, (2) costs related to the acquisition of properties and (3) property impairments, as appropriate. These items can vary greatly from period to period, depending upon the volume of our acquisition activity and debt retirements, among other factors. We believe that by excluding these items, Core FFO serves as a useful, supplementary measure of WRIT’s ability to incur and service debt, and distribute dividends to its shareholders. Core FFO is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs.

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	Three Months Ended
	03/31/11		12/31/10			09/30/10			06/30/10			03/31/10
Adjusted EBITDA⁽¹⁾

Net income attributable to the controlling interests	$	4,665	$	10,591		$	6,625		$	14,994		$	5,216
Add:
Interest expense, including discontinued operations		17,126		17,801			17,100			17,013			17,065
Real estate depreciation and amortization, including discontinued operations		25,249		24,191			24,278			23,669			23,608
Real estate impairment		599		—			—			—			—
Non-real estate depreciation		268		279			277			274			272
Less:
Gain on sale of real estate		—		(13,657	)		—			(7,942	)		—
Loss (gain) on extinguishment of debt		—		8,896			238			—			42
Gain from non-disposal activities		—		(3	)		(4	)		—			—


Adjusted EBITDA	$	47,907	$	48,098		$	48,514		$	48,008		$	46,203

⁽¹⁾

Adjusted EBITDA is earnings before interest expense, taxes, depreciation, amortization, gain on sale of real estate, gain/loss on extinguishment of debt and gain from non-disposal activities. We consider Adjusted EBITDA to be an appropriate supplemental performance measure because it permits investors to view income from operations without the effect of depreciation, the cost of debt or non-operating gains and losses. Adjusted EBITDA is a non-GAAP measure.

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	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010
Balances Outstanding

Secured
Conventional fixed rate	$	379,333		$	380,171		$	381,109		$	403,612	⁽¹⁾	$	404,518	⁽¹⁾

Secured total		379,333			380,171			381,109			403,612			404,518

Unsecured
Fixed rate bonds and notes		753,692			753,587			930,201			689,007			688,358
Credit facility		160,000			100,000			100,000			107,000			110,000

Unsecured total		913,692			853,587			1,030,201			796,007			798,358

Total	$	1,293,025		$	1,233,758		$	1,411,310		$	1,199,619		$	1,202,876


Average Interest Rates

Secured
Conventional fixed rate		5.9	%		5.9	%		5.9	%		5.9	%		5.9	%

Secured total		5.9	%		5.9	%		5.9	%		5.9	%		5.9	%

Unsecured
Fixed rate bonds		5.4	%		5.4	%		5.5	%		5.7	%		5.7	%
Credit facilities		1.8	%⁽²⁾		2.5	%⁽²⁾		2.5	%⁽²⁾		2.4	%⁽²⁾		2.4	%⁽²⁾

Unsecured total		4.8	%		5.1	%		5.2	%		5.3	%		5.2	%

Average		5.1	%		5.4	%		5.4	%		5.5	%		5.5	%

Note: The current balances outstanding of the secured and unsecured fixed rate bonds and notes are shown net of discounts/premiums in the amount of $6.5 million and $2.8 million, respectively.

⁽¹⁾	Balance includes the mortgage note payable secured by The Ridges, a property we sold on December 21, 2010, which has been reclassified to “Other liabilities related to properties sold or held for sale.” We repaid this mortgage note payable without penalty on July 12, 2010.

⁽²⁾

On December 1, 2009, we borrowed $100.0 million on a line of credit in order to prepay the $100.0 million term loan. Through February 19, 2010, the interest rate on this $100.0 million borrowing on our lines of credit is effectively fixed by an interest rate swap at 3.375%. Beginning February 20, 2010 through November 1, 2011, an interest rate swap effectively fixes the interest rate at 2.525%.

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	*Future Maturities of Debt*
Year	Secured Debt		Unsecured Debt		Credit Facilities		Total Debt		Average Interest Rate
2011	$	12,344	$	96,521	$	160,000	$	268,865		3.5	%
2012		42,489		50,000		—		92,489		5.1	%
2013		85,504		60,000		—		145,504		5.4	%
2014		1,516		100,000		—		101,516		5.3	%
2015		20,040		150,000		—		170,040		5.3	%
2016		82,281		—		—		82,281		5.7	%
2017		103,193		—		—		103,193		7.2	%
2018		1,402		—		—		1,402		5.4	%
2019		32,061		—		—		32,061		5.4	%
Thereafter		5,041		300,000		—		305,041		5.4	%

Total maturities	$	385,871	$	756,521	$	160,000	$	1,302,392		5.1	%

Weighted average maturity = 4.8 years

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	Unsecured Notes Payable						Unsecured Line of Credit #1 ($75.0 million)						Unsecured Line of Credit #2 ($262.0 million)
	Quarter Ended March 31, 2011			Covenant			Quarter Ended March 31, 2011			Covenant			Quarter Ended March 31, 2011			Covenant
% of Total Indebtedness to Total Assets⁽¹⁾		43.6	%		£ 65.0	%		N/A			N/A			N/A			N/A
Ratio of Income Available for Debt Service to Annual Debt Service		3.0			³ 1.5			N/A			N/A			N/A			N/A
% of Secured Indebtedness to Total Assets⁽¹⁾		12.8	%		£ 40.0	%		N/A			N/A			N/A			N/A
Ratio of Total Unencumbered Assets⁽²⁾ to Total Unsecured Indebtedness		2.2			³ 1.5			N/A			N/A			N/A			N/A
Tangible Net Worth		N/A			N/A		$	1.1 billion		³	$808.6 million		$	1.1 billion		³	$808.6 million
% of Total Liabilities to Gross Asset Value⁽⁴⁾		N/A			N/A			53.1	%		£ 60.0	%		51.5	%		£ 60.0	%
% of Secured Indebtedness to Gross Asset Value⁽⁴⁾		N/A			N/A			14.5	%		£ 35.0	%		14.2	%		£ 35.0	%
Ratio of EBITDA⁽³⁾ to Fixed Charges⁽⁵⁾		N/A			N/A			2.52			³ 1.75			2.52			³ 1.75
Ratio of Unencumbered Pool Value⁽⁷⁾ to Unsecured Indebtedness		N/A			N/A			2.36			³ 1.67			N/A			N/A
Ratio of Unencumbered Net Operating Income to Unsecured Interest Expense		N/A			N/A			N/A			N/A			3.31			³ 2.00

% of Development in Progress to Gross Asset Value⁽⁴⁾		N/A			N/A			1.0	%		£ 30.0	%		1.0	%		£ 20.0	%
% of Non-Wholly Owned Assets⁽⁶⁾ to Gross Asset Value⁽⁴⁾		N/A			N/A			1.3	%		£ 15.0	%		1.3	%		£ 15.0	%

⁽¹⁾	Total Assets is calculated by applying a capitalization rate of 7.50% to the EBITDA⁽³⁾ from the last four consecutive quarters, excluding EBITDA from acquired, disposed, and non-stabilized development properties.

⁽²⁾	Total Unencumbered Assets is calculated by applying a capitalization rate of 7.50% to the EBITDA⁽³⁾ from unencumbered properties from the last four consecutive quarters, excluding EBITDA from acquired, disposed, and non-stabilized development properties.

⁽³⁾	EBITDA is defined in our debt covenants as earnings before interest income, interest expense, taxes, depreciation, amortization, gain on sale of real estate, real estate impairments, gain/loss on extinguishment of debt and gain from non-disposal activities.

⁽⁴⁾

Gross Asset Value is calculated by applying a capitalization rate to the annualized EBITDA⁽³⁾ from the most recently ended quarter, excluding EBITDA from disposed properties and current quarter acquisitions. To this amount, the purchase price of current quarter acquisitions, cash and cash equivalents and development in progress is added.

⁽⁵⁾	Fixed Charges consist of interest expense, principal payments, ground lease payments and replacement reserve payments.

⁽⁶⁾	Non-Wholly Owned Assets is calculated by applying a capitalization rate of 7.50% to the EBITDA⁽³⁾ from properties subject to a joint operating agreement (i.e. NVIP I&II). We add to this amount the development in progress subject to a joint operating agreement (i.e. 4661 Kenmore Avenue).

⁽⁷⁾	Unencumbered Pool Value is calculated by applying a capitalization rate of 7.75% to the net operating income from unencumbered properties owned for the entire quarter. To this we add the purchase price of unencumbered acquisitions during the current quarter and development in progress.

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	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010
Market Data

Shares Outstanding		65,941			65,870			64,093			62,380			60,545
Market Price per Share	$	31.09		$	30.99		$	31.73		$	27.59		$	30.55
Equity Market Capitalization	$	2,050,106		$	2,041,311		$	2,033,671		$	1,721,064		$	1,849,650

Total Debt	$	1,293,025		$	1,233,758		$	1,411,310		$	1,199,619	⁽³⁾	$	1,202,876	⁽³⁾
Total Market Capitalization	$	3,343,131		$	3,275,069		$	3,444,981		$	2,920,683		$	3,052,526

Total Debt to Market Capitalization		0.39:1			0.38:1			0.41:1			0.41:1			0.39:1


Earnings to Fixed Charges⁽¹⁾		1.3 x			0.8 x			1.3 x			1.3 x			1.2 x
Debt Service Coverage Ratio⁽²⁾		2.7 x			2.5 x			2.7 x			2.7 x			2.5 x

Dividend Data

Total Dividends Paid	$	28,587		$	28,438		$	27,485		$	26,677		$	25,890
Common Dividend per Share	$	0.4338		$	0.4338		$	0.4325		$	0.4325		$	0.4325
Payout Ratio (Core FFO per share basis)		88.5	%		90.4	%		88.3	%		84.8	%		90.1	%
Payout Ratio (Core FAD per share basis)		100.9	%		127.6	%		108.1	%		98.3	%		100.6	%
Payout Ratio (FAD per share basis)		108.4	%		180.7	%		108.1	%		100.6	%		100.6	%

⁽¹⁾

The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For this purpose, earnings consist of income from continuing operations attributable to the controlling interests plus fixed charges, less capitalized interest. Fixed charges consist of interest expense, including amortized costs of debt issuance, plus interest costs capitalized.

⁽²⁾	Debt service coverage ratio is computed by dividing Adjusted EBITDA (see page 7) by interest expense and principal amortization.

⁽³⁾	“Total Debt” balance includes a $22.5 million mortgage notes payable secured by The Ridges, a property we sold on December 21, 2010, that has been reclassified to “Other liabilities related to properties sold or held for sale.” We repaid this mortgage note payable without penalty on July 12, 2010.

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	First Quarter⁽¹⁾
	NOI Growth			Rental Rate Growth
Cash Basis:
Multifamily		14.2	%		3.3	%
Office Buildings		1.2	%		2.7	%
Medical Office Buildings		-1.2	%		3.4	%
Retail Centers		-1.8	%		0.5	%
Industrial/Flex		0.5	%		3.7	%

Overall Same-Store Portfolio		2.1	%		2.7	%

	First Quarter⁽¹⁾
	NOI Growth			Rental Rate Growth
GAAP Basis:
Multifamily		13.7	%		3.3	%
Office Buildings		-1.5	%		1.9	%
Medical Office Buildings		-1.3	%		3.7	%
Retail Centers		0.5	%		0.9	%
Industrial/Flex		-0.8	%		2.8	%

Overall Same-Store Portfolio		1.1	%		2.4	%

¹	Non same-store properties were:

Acquisitions:

Office - 1140 Connecticut Avenue, 1227 25^th Street and Quantico Corporate Center;

Retail - Gateway Overlook;

Medical Office - Lansdowne Medical Office Building.

Held for sale and sold properties: Office - Dulles Station, Phase I, Parklawn Plaza, Saratoga Building, Lexington Building and the Ridges;

Industrial - Crossroads Distribution Center, Charleston Business Center, Ammendale I&II and Amvax.

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	Three Months Ended March 31,
	2011		2010		% Change

Cash Basis:
Multifamily	$	7,466	$	6,540		14.2	%
Office Buildings		19,421		19,199		1.2	%
Medical Office Buildings		7,309		7,398		-1.2	%
Retail Centers		7,132		7,263		-1.8	%
Industrial/Flex		5,848		5,818		0.5	%

	$	47,176	$	46,218		2.1	%


GAAP Basis:
Multifamily	$	7,665	$	6,739		13.7	%
Office Buildings		19,905		20,198		-1.5	%
Medical Office Buildings		7,505		7,603		-1.3	%
Retail Centers		7,255		7,217		0.5	%
Industrial/Flex		5,720		5,764		-0.8	%

	$	48,050	$	47,521		1.1	%

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	Three Months Ended March 31, 2011
	Multifamily			Office			Medical Office			Retail			Industrial/Flex			Corporate and Other			Total
Real estate rental revenue
Same-store portfolio	$	12,493		$	30,073		$	11,023		$	10,225		$	8,281		$	—		$	72,095
Non same-store - acquired and in development ¹		—			4,030			108			1,922			—			—			6,060

Total		12,493			34,103			11,131			12,147			8,281			—			78,155

Real estate expenses
Same-store portfolio		4,828			10,168			3,518			2,970			2,561			—			24,045
Non same-store - acquired and in development ¹		—			1,320			151			572			—			—			2,043

Total		4,828			11,488			3,669			3,542			2,561			—			26,088

Net Operating Income (NOI)
Same-store portfolio		7,665			19,905			7,505			7,255			5,720			—			48,050
Non same-store - acquired and in development ¹		—			2,710			(43	)		1,350			—			—			4,017

Total	$	7,665		$	22,615		$	7,462		$	8,605		$	5,720		$	—		$	52,067


Same-store portfolio NOI GAAP basis (from above)	$	7,665		$	19,905		$	7,505		$	7,255		$	5,720		$	—		$	48,050
Straight-line revenue, net for same-store properties		(8	)		(258	)		(113	)		(59	)		176			—			(262	)
FAS 141 Min Rent		(191	)		(361	)		(93	)		(79	)		(54	)		—			(778	)
Amortization of lease intangibles for same-store properties		—			135			10			15			6			—			166

Same-store portfolio NOI, cash basis	$	7,466		$	19,421		$	7,309		$	7,132		$	5,848		$	—		$	47,176


Reconciliation of NOI to Net Income
Total NOI	$	7,665		$	22,615		$	7,462		$	8,605		$	5,720		$	—		$	52,067
Other income		—			—			—			—			—			306			306
Acquisition costs		—			—			—			—			—			(1,649	)		(1,649	)
Interest expense		(1,686	)		(2,230	)		(1,313	)		(306	)		(234	)		(11,357	)		(17,126	)
Depreciation and amortization		(3,134	)		(12,288	)		(3,827	)		(2,662	)		(2,528	)		(311	)		(24,750	)
General and administrative		—			—			—			—			—			(3,702	)		(3,702	)
Discontinued operations²		—			(458	)		—			—			—			—			(458	)

Net Income		2,845			7,639			2,322			5,637			2,958			(16,713	)		4,688
Net income attributable to noncontrolling interests		—			—			—			—			—			(23	)		(23	)

Net income attributable to the controlling interests	$	2,845		$	7,639		$	2,322		$	5,637		$	2,958		$	(16,736	)	$	4,665

¹	Non same-store acquired and in development properties:


Acquisitions:		Office - 1140 Connecticut Avenue, 1227 25^th Street and Quantico Corporate Center;
		Retail - Gateway Overlook;
		Medical Office - Lansdowne Medical Office Building.

²	Discontinued operations include a held for sale property: Office - Dulles Station, Phase I.

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	Three Months Ended March 31, 2010
	Multifamily			Office			Medical Office			Retail			Industrial/Flex			Corporate and Other			Total
Real estate rental revenue
Same-store portfolio	$	11,842		$	30,973		$	11,415		$	10,501		$	8,820		$	—		$	73,551
Non same-store - acquired and in development ¹		—			—			—			—			—			—			—

Total		11,842			30,973			11,415			10,501			8,820			—			73,551

Real estate expenses
Same-store portfolio		5,103			10,775			3,812			3,284			3,056			—			26,030
Non same-store - acquired and in development ¹		—			—			139			—			—			—			139

Total		5,103			10,775			3,951			3,284			3,056			—			26,169

Net operating income (NOI)
Same-store portfolio		6,739			20,198			7,603			7,217			5,764			—			47,521
Non same-store - acquired and in development ¹		—			—			(139	)		—			—			—			(139	)

Total	$	6,739		$	20,198		$	7,464		$	7,217		$	5,764		$	—		$	47,382


Same-store portfolio NOI GAAP basis (from above)	$	6,739		$	20,198		$	7,603		$	7,217		$	5,764		$	—		$	47,521
Straight-line revenue, net for same-store properties		(8	)		(529	)		(109	)		122			90			—			(434	)
FAS 141 Min Rent		(191	)		(528	)		(99	)		(84	)		(41	)		—			(943	)
Amortization of lease intangibles for same-store properties		—			58			3			8			5			—			74

Same-store portfolio NOI, cash basis	$	6,540		$	19,199		$	7,398		$	7,263		$	5,818		$	—		$	46,218


Reconciliation of NOI to net income
Total NOI	$	6,739		$	20,198		$	7,464		$	7,217		$	5,764		$	—		$	47,382
Other income (expense)		—			—			—			—			—			289			289
Acquisition costs		—			—			—			—			—			(55	)		(55	)
Interest expense		(1,693	)		(2,337	)		(1,342	)		(320	)		(238	)		(10,908	)		(16,838	)
Depreciation and amortization		(3,442	)		(10,568	)		(3,861	)		(1,795	)		(2,601	)		(320	)		(22,587	)
General and administrative		—			—			—			—			—			(3,783	)		(3,783	)
Discontinued operations²		—			364			—			—			535			—			899
Gain (loss) on extinguishment of debt		—			—			—			—			—			(42	)		(42	)

Net income		1,604			7,657			2,261			5,102			3,460			(14,819	)		5,265
Net income attributable to noncontrolling interests		—			—			—			—			—			(49	)		(49	)

Net income attributable to the controlling interests	$	1,604		$	7,657		$	2,261		$	5,102		$	3,460		$	(14,868	)	$	5,216

¹	Non same-store acquired and in development properties:

Acquisitions: Medical Office - Lansdowne Medical Office Building.

²	Discontinued operations include held for sale and sold properties: Office - Parklawn Plaza, Saratoga Building, Lexington Building, the Ridges and Dulles Station, Phase I;

Industrial - Charleston Business Center, Ammendale I&II and Amvax.

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WRIT Portfolio

Maryland/Virginia/DC


	Percentage of Q1 2011 GAAP NOI

DC
Multifamily		3.8	%
Office		17.6	%
Medical Office Buildings		1.8	%
Retail		0.6	%
Industrial/Flex		0.0	%

		23.8	%

Maryland
Multifamily		2.3	%
Office		11.6	%
Medical Office Buildings		4.0	%
Retail		10.7	%
Industrial/Flex		3.0	%

		31.6	%

Virginia
Multifamily		8.6	%
Office		14.3	%
Medical Office Buildings		8.6	%
Retail		5.1	%
Industrial/Flex		8.0	%

		44.6	%

Total Portfolio¹		100.0	%

WRIT Portfolio

Inside & Outside the Beltway


	Percentage of Q1 2011 GAAP NOI

Inside the Beltway
Multifamily		13.9	%
Office		23.4	%
Medical Office Buildings		2.9	%
Retail		5.8	%
Industrial/Flex		2.7	%

		48.7	%

Outside the Beltway
Multifamily		0.8	%
Office		20.1	%
Medical Office Buildings		11.4	%
Retail		10.7	%
Industrial/Flex		8.3	%

		51.3	%

Total Portfolio¹		100.0	%

¹	Excludes discontinued operations: Dulles Station, Phase I.

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	Physical Occupancy - Same-Store Properties ⁽¹⁾
Sector	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010

Multifamily		95.3	%		95.7	%		96.4	%		95.0	%		94.4	%
Office Buildings		88.3	%		88.4	%		88.4	%		89.9	%		90.2	%
Medical Office Buildings		93.5	%		93.8	%		93.3	%		94.1	%		93.8	%
Retail Centers		92.2	%		92.5	%		92.2	%		94.4	%		93.2	%
Industrial / Flex		80.2	%		78.6	%		79.7	%		79.3	%		83.0	%


Overall Portfolio		88.7	%		88.5	%		88.8	%		89.4	%		90.0	%

	Physical Occupancy - All Properties
Sector	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010

Multifamily		95.3	%		95.7	%		96.4	%		95.0	%		94.4	%
Office Buildings		88.9	%		89.4	%		89.6	%		90.8	%		89.7	%
Medical Office Buildings		88.3	%		88.5	%		87.8	%		88.0	%		87.7	%
Retail Centers		92.0	%		92.1	%		92.2	%		94.4	%		93.2	%
Industrial / Flex		80.2	%		78.6	%		79.5	%		79.2	%		82.8	%


Overall Portfolio		88.4	%		88.3	%		88.4	%		88.9	%		89.0	%

¹	Non same-store properties were:


Acquisitions:		Office - 1140 Connecticut Avenue, 1227 25th Street and Quantico Corporate Center;
		Retail - Gateway Overlook;
		Medical Office - Lansdowne Medical Office Building.


Sold and held for sale properties:		Office - Dulles Station, Phase I, Parklawn Plaza, Saratoga Building, Lexington Building and the Ridges;
		Industrial - Charleston Business Center, Ammendale I&II and Amvax.

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	Economic Occupancy - Same-Store Properties⁽¹⁾
Sector	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010

Multifamily		94.8	%		95.5	%		95.6	%		93.7	%		94.1	%
Office Buildings		89.4	%		88.8	%		88.9	%		91.3	%		92.0	%
Medical Office Buildings		94.2	%		94.5	%		94.8	%		95.7	%		95.9	%
Retail Centers		92.3	%		91.4	%		91.7	%		92.0	%		91.3	%
Industrial / Flex		81.4	%		81.6	%		83.1	%		82.4	%		85.9	%


Overall Portfolio		90.5	%		90.4	%		90.6	%		91.4	%		92.1	%

	Economic Occupancy - All Properties
Sector	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010

Multifamily		94.8	%		95.5	%		95.6	%		93.7	%		94.1	%
Office Buildings		90.7	%		90.0	%		90.1	%		91.3	%		91.6	%
Medical Office Buildings		90.5	%		90.3	%		90.3	%		91.0	%		91.1	%
Retail Centers		92.0	%		91.4	%		91.7	%		92.0	%		91.3	%
Industrial / Flex		81.4	%		81.9	%		83.0	%		82.8	%		85.7	%


Overall Portfolio		90.5	%		90.2	%		90.3	%		90.7	%		91.2	%

¹	Non same-store properties were:


Acquisitions:		Office - 1140 Connecticut Avenue, 1227 25th Street and Quantico Corporate Center;
		Retail - Gateway Overlook;
		Medical Office - Lansdowne Medical Office Building.


Sold and held for sale properties:		Office - Dulles Station, Phase I, Parklawn Plaza, Saratoga Building, Lexington Building and the Ridges;
		Industrial - Charleston Business Center, Ammendale I&II and Amvax.

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	1st Quarter 2011						4th Quarter 2010						3rd Quarter 2010						2nd Quarter 2010						1st Quarter 2010
Gross Leasing Square Footage
Office Buildings		138,083						125,367						103,428						149,296						198,868
Medical Office Buildings		43,355						7,136						70,426						92,041						23,951
Retail Centers		78,669						97,055						52,501						113,878						5,805
Industrial Centers		156,134						152,563						103,800						285,628						45,616

Total		416,241						382,121						330,155						640,843						274,240

Weighted Average Term (yrs)
Office Buildings		3.6						5.4						3.8						6.7						5.6
Medical Office Buildings		6.0						3.9						5.3						5.4						9.0
Retail Centers		4.5						8.4						6.2						5.7						5.0
Industrial Centers		4.9						4.5						3.4						4.9						3.3

Total		4.5						5.8						4.4						5.5						5.5


Rental Rate Increases:	GAAP			CASH			GAAP			CASH			GAAP			CASH			GAAP			CASH			GAAP			CASH
Rate on expiring leases
Office Buildings	$	31.41		$	32.26		$	28.72		$	30.30		$	27.65		$	28.50		$	29.71		$	30.35		$	26.85		$	27.91
Medical Office Buildings		32.91			34.90			35.53			37.37			30.40			32.62			32.29			34.30			32.18			33.92
Retail Centers		15.64			15.91			15.50			16.13			26.01			26.71			16.10			16.38			25.83			27.42
Industrial Centers		10.28			10.54			10.82			11.45			10.36			10.73			10.05			10.46			9.29			9.93

Total	$	20.66		$	21.30		$	18.34		$	19.31		$	22.54		$	23.51		$	18.90		$	19.57		$	24.37		$	25.43


Rate on new leases
Office Buildings	$	30.97		$	29.91		$	31.39		$	29.41		$	28.29		$	27.09		$	31.49		$	28.84		$	30.97		$	28.86
Medical Office Buildings		37.24			34.76			37.41			36.05			34.94			32.78			39.30			36.44			40.38			35.27
Retail Centers		16.48			16.30			21.79			20.41			30.57			29.36			16.30			16.03			31.31			29.97
Industrial Centers		8.70			8.22			9.80			9.19			9.23			8.92			13.62			13.50			9.47			9.20

Total	$	20.53		$	19.71		$	20.44		$	19.18		$	24.08		$	22.95		$	21.95		$	20.82		$	28.22		$	26.18


Percentage Increase
Office Buildings		-1.40	%		-7.30	%		9.31	%		-2.93	%		2.34	%		-4.93	%		6.00	%		-5.00	%		15.34	%		3.43	%
Medical Office Buildings		13.14	%		-0.41	%		5.28	%		-3.53	%		14.95	%		0.51	%		21.73	%		6.26	%		25.48	%		3.98	%
Retail Centers		5.39	%		2.42	%		40.57	%		26.50	%		17.51	%		9.91	%		1.24	%		-2.15	%		21.21	%		9.30	%
Industrial Centers		-15.33	%		-21.99	%		-9.41	%		-19.73	%		-10.91	%		-16.89	%		35.57	%		29.11	%		1.90	%		-7.38	%

Total		-0.62	%		-7.48	%		11.47	%		-0.69	%		6.84	%		-2.36	%		16.15	%		6.39	%		15.79	%		2.92	%


	Total Dollars			Dollars per Square Foot			Total Dollars			Dollars per Square Foot			Total Dollars			Dollars per Square Foot			Total Dollars			Dollars per Square Foot			Total Dollars			Dollars per Square Foot
Tenant Improvements
Office Buildings	$	535,267		$	3.88		$	2,461,273		$	19.63		$	1,296,481		$	12.54		$	4,512,498		$	30.23		$	3,473,255		$	17.47
Medical Office Buildings		384,336			8.86			86,938			12.18			859,930			12.21			1,610,073			17.49			595,969			24.88
Retail Centers		—			—			288,110			2.97			22,500			0.43			587,775			5.16			—			—
Industrial Centers		367,313			2.35			166,689			1.09			102,112			0.98			513,745			1.80			64,327			1.41

Subtotal	$	1,286,916		$	3.09		$	3,003,010		$	7.86		$	2,281,023		$	6.91		$	7,224,091		$	11.27		$	4,133,551		$	15.07


Leasing Costs
Office Buildings	$	575,877		$	4.17		$	1,478,644		$	11.79		$	781,922		$	7.56		$	3,316,582		$	22.21		$	2,064,933		$	10.38
Medical Office Buildings		530,574			12.24			21,703			3.04			362,586			5.15			959,827			10.43			400,746			16.73
Retail Centers		84,464			1.07			423,791			4.37			120,850			2.30			195,025			1.71			7,808			1.35
Industrial Centers		289,927			1.86			371,620			2.44			222,983			2.15			921,870			3.23			97,391			2.14

Subtotal	$	1,480,842		$	3.56		$	2,295,758		$	6.01		$	1,488,341		$	4.51		$	5,393,304		$	8.42		$	2,570,878		$	9.37


Tenant Improvements and Leasing Costs
Office Buildings	$	1,111,144		$	8.05		$	3,939,917		$	31.43		$	2,078,403		$	20.10		$	7,829,080		$	52.44		$	5,538,188		$	27.85
Medical Office Buildings		914,910			21.10			108,641			15.22			1,222,516			17.36			2,569,900			27.92			996,715			41.61
Retail Centers		84,464			1.07			711,901			7.34			143,350			2.73			782,800			6.87			7,808			1.35
Industrial Centers		657,240			4.21			538,309			3.53			325,095			3.13			1,435,615			5.03			161,718			3.55

Total	$	2,767,758		$	6.65		$	5,298,768		$	13.87		$	3,769,364		$	11.42		$	12,617,395		$	19.69		$	6,704,429		$	24.45

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Tenant	Number of Buildings		Weighted Average Remaining Lease Term in Months		Percentage of Aggregate Portfolio Annualized Rent			Aggregate Rentable Square Feet		Percentage of Aggregate Occupied Square Feet

World Bank		1		51		4.76	%		210,354		2.30	%
Advisory Board Company		1		98		2.71	%		180,925		1.98	%
General Services Administration		10		41		2.55	%		304,866		3.33	%
INOVA Health System		7		46		1.93	%		114,208		1.25	%
Patton Boggs LLP		1		73		1.85	%		110,566		1.21	%
Sunrise Assisted Living, Inc.		1		30		1.55	%		115,289		1.26	%
General Dynamics		2		39		1.13	%		88,359		0.97	%
Children’s Hospital		3		87		1.02	%		69,230		0.76	%
Epstein, Becker & Green, P.C.		1		69		1.01	%		53,427		0.58	%
George Washington University		2		57		1.01	%		69,775		0.76	%

Total/Weighted Average				57		19.52	%		1,316,999		14.40	%

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Industry Classification (NAICS)	Annualized Base Rental Revenue		Percentage of Aggregate Annualized Rent			Aggregate Rentable Square Feet		Percentage of Aggregate Square Feet

Professional, Scientific, and Technical Services	$	64,634,564		28.64	%		2,334,664		25.31	%
Ambulatory Health Care Services		39,598,256		17.55	%		1,177,947		12.77	%
Credit Intermediation and Related Activities		16,350,482		7.25	%		346,835		3.76	%
Executive, Legislative, and Other General Government Support		12,087,719		5.36	%		497,711		5.40	%
Religious, Grantmaking, Civic, Professional, and Similar Organizations		7,214,051		3.20	%		213,242		2.31	%
Educational Services		6,657,455		2.95	%		235,582		2.55	%
Food Services and Drinking Places		6,484,791		2.87	%		227,780		2.47	%
Administrative and Support Services		4,809,907		2.13	%		300,603		3.26	%
Food and Beverage Stores		4,715,705		2.09	%		270,049		2.93	%
Nursing and Residential Care Facilities		4,579,437		2.03	%		145,010		1.57	%
Furniture and Home Furnishings Stores		3,734,700		1.66	%		226,672		2.46	%
Miscellaneous Store Retailers		3,570,456		1.58	%		211,591		2.29	%
Broadcasting (except Internet)		3,087,610		1.37	%		89,238		0.97	%
Sporting Goods, Hobby, Book, and Music Stores		2,823,940		1.25	%		168,347		1.83	%
Merchant Wholesalers, Durable Goods		2,817,679		1.25	%		269,261		2.92	%
Clothing and Clothing Accessories Stores		2,721,962		1.21	%		139,874		1.52	%
Personal and Laundry Services		2,642,852		1.17	%		94,507		1.03	%
Health and Personal Care Stores		2,642,501		1.17	%		76,169		0.83	%
Electronics and Appliance Stores		2,200,192		0.98	%		145,807		1.58	%
Hospitals		2,091,876		0.93	%		70,909		0.77	%
Merchant Wholesalers, Nondurable Goods		1,845,854		0.82	%		195,893		2.12	%
General Merchandise Stores		1,672,527		0.74	%		209,452		2.27	%
Real Estate		1,651,096		0.73	%		58,225		0.63	%
Construction of Buildings		1,564,751		0.69	%		98,526		1.07	%
Amusement, Gambling, and Recreation Industries		1,525,390		0.68	%		106,464		1.15	%
Miscellaneous Manufacturing		1,479,761		0.66	%		149,604		1.62	%
Transportation Equipment Manufacturing		1,370,355		0.61	%		48,559		0.53	%
Computer and Electronic Product Manufacturing		1,188,679		0.53	%		47,770		0.52	%
Printing and Related Support Activities		1,115,972		0.50	%		48,775		0.53	%
Insurance Carriers and Related Activities		1,063,469		0.47	%		40,018		0.43	%
Specialty Trade Contractors		992,928		0.44	%		108,522		1.18	%
Other		14,708,201		6.49	%		869,771		9.42	%

Total	$	225,645,118		100.00	%		9,223,377		100.00	%

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Year	Number of Leases		Rentable Square Feet		Percent of Rentable Square Feet			Annualized Rent *		Average Rental Rate		Percent of Annualized Rent *
Office:
2011		107		400,734		10.46	%	$	13,020,527	$	32.49		9.52	%
2012		92		454,621		11.87	%		13,981,747		30.75		10.22	%
2013		91		499,336		13.04	%		16,100,551		32.24		11.77	%
2014		79		800,672		20.90	%		26,488,446		33.08		19.36	%
2015		66		457,971		11.96	%		19,240,517		42.01		14.06	%
2016 and thereafter		147		1,216,986		31.77	%		47,993,369		39.44		35.07	%

		582		3,830,320		100.00	%	$	136,825,157	$	35.72		100.00	%

Medical Office:
2011		59		120,812		10.53	%	$	3,999,943	$	33.11		8.98	%
2012		47		170,163		14.83	%		6,235,374		36.64		14.01	%
2013		57		165,436		14.42	%		5,873,842		35.51		13.19	%
2014		37		115,148		10.04	%		4,483,834		38.94		10.07	%
2015		29		103,741		9.04	%		3,983,696		38.40		8.95	%
2016 and thereafter		109		471,870		41.14	%		19,946,817		42.27		44.80	%

		338		1,147,170		100.00	%	$	44,523,506	$	38.81		100.00	%

Retail:
2011		40		95,727		5.04	%	$	2,092,227	$	21.86		5.14	%
2012		43		143,468		7.55	%		3,369,854		23.49		8.28	%
2013		38		293,901		15.47	%		4,414,170		15.02		10.85	%
2014		23		98,527		5.19	%		2,328,885		23.64		5.72	%
2015		33		303,296		15.97	%		5,863,164		19.33		14.41	%
2016 and thereafter		99		964,504		50.78	%		22,624,842		23.46		55.60	%

		276		1,899,423		100.00	%	$	40,693,142	$	21.42		100.00	%

Industrial/Flex:
2011		33		258,953		10.91	%	$	2,816,231	$	10.88		9.79	%
2012		43		506,160		21.33	%		5,626,800		11.12		19.57	%
2013		39		428,815		18.07	%		4,844,659		11.30		16.85	%
2014		26		469,289		19.78	%		5,949,345		12.68		20.69	%
2015		29		375,910		15.84	%		5,646,366		15.02		19.64	%
2016 and thereafter		27		333,686		14.07	%		3,872,438		11.61		13.46	%

		197		2,372,813		100.00	%	$	28,755,839	$	12.12		100.00	%

Total:
2011		239		876,226		9.47	%	$	21,928,928	$	25.03		8.74	%
2012		225		1,274,412		13.78	%		29,213,775		22.92		11.65	%
2013		225		1,387,488		15.00	%		31,233,222		22.51		12.45	%
2014		165		1,483,636		16.04	%		39,250,510		26.46		15.65	%
2015		157		1,240,918		13.42	%		34,733,743		27.99		13.85	%
2016 and thereafter		382		2,987,046		32.29	%		94,437,466		31.62		37.66	%

		1,393		9,249,726		100.00	%	$	250,797,644	$	27.11		100.00	%

*	Annualized Rent is equal to the rental rate effective at lease expiration (cash basis) multiplied by 12.

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Acquisition Summary


		Acquisition Date	Square Feet		Leased Percentage at Acquisition			March 31, 2011 Leased Percentage			Investment
1140 Connecticut Avenue	Washington, DC	January 11, 2011		184,000		99	%		99	%	$	80,250
1227 25^th Street	Washington, DC	March 30, 2011		130,000		72	%		72	%		47,000

		Total		314,000							$	127,250

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PROPERTIES	LOCATION	YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET*

Office Buildings
1901 Pennsylvania Avenue	Washington, DC		1977		1960		97,000
51 Monroe Street	Rockville, MD		1979		1975		210,000
515 King Street	Alexandria, VA		1992		1966		76,000
6110 Executive Boulevard	Rockville, MD		1995		1971		198,000
1220 19th Street	Washington, DC		1995		1976		102,000
1600 Wilson Boulevard	Arlington, VA		1997		1973		166,000
7900 Westpark Drive	McLean, VA		1997		1972/1986/1999		523,000
600 Jefferson Plaza	Rockville, MD		1999		1985		112,000
1700 Research Boulevard	Rockville, MD		1999		1982		101,000
Wayne Plaza	Silver Spring, MD		2000		1970		91,000
Courthouse Square	Alexandria, VA		2000		1979		113,000
One Central Plaza	Rockville, MD		2001		1974		267,000
The Atrium Building	Rockville, MD		2002		1980		80,000
1776 G Street	Washington, DC		2003		1979		263,000
Albemarle Point	Chantilly, VA		2005		2001		89,000
6565 Arlington Boulevard	Falls Church, VA		2006		1967/1998		140,000
West Gude Drive	Rockville, MD		2006		1984/1986/1988		276,000
The Crescent	Gaithersburg, MD		2006		1989		49,000
Monument II	Herndon, VA		2007		2000		205,000
Woodholme Center	Pikesville, MD		2007		1989		73,000
2000 M Street	Washington, DC		2007		1971		227,000
Dulles Station	Herndon, VA		2005		2007		180,000
2445 M Street	Washington, DC		2008		1986		290,000
925 Corporate Drive	Stafford, VA		2010		2007		135,000
1000 Corporate Drive	Stafford, VA		2010		2009		136,000
1140 Connecticut Avenue	Washington, DC		2011		1966		184,000
1227 25th Street	Washington, DC		2011		1988		130,000

Subtotal							4,513,000


Medical Office Buildings
Woodburn Medical Park I	Annandale, VA		1998		1984		71,000
Woodburn Medical Park II	Annandale, VA		1998		1988		96,000
Prosperity Medical Center I	Merrifield, VA		2003		2000		92,000
Prosperity Medical Center II	Merrifield, VA		2003		2001		88,000
Prosperity Medical Center III	Merrifield, VA		2003		2002		75,000
Shady Grove Medical Village II	Rockville, MD		2004		1999		66,000
8301 Arlington Boulevard	Fairfax, VA		2004		1965		49,000
Alexandria Professional Center	Alexandria, VA		2006		1968		113,000
9707 Medical Center Drive	Rockville, MD		2006		1994		38,000
15001 Shady Grove Road	Rockville, MD		2006		1999		51,000
Plumtree Medical Center	Bel Air, MD		2006		1991		33,000
15005 Shady Grove Road	Rockville, MD		2006		2002		52,000
2440 M Street	Washington, DC		2007		1986/2006		110,000
Woodholme Medical Office Building	Pikesville, MD		2007		1996		125,000
Ashburn Office Park	Ashburn, VA		2007		1998/2000/2002		75,000
CentreMed I & II	Centreville, VA		2007		1998		52,000
Sterling Medical Office Building	Sterling, VA		2008		1986/2000		36,000
Lansdowne Medical Office Building	Leesburg, VA		2009		2009		87,000

Subtotal							1,309,000


Retail Centers
Takoma Park	Takoma Park, MD		1963		1962		51,000
Westminster	Westminster, MD		1972		1969		151,000
Concord Centre	Springfield, VA		1973		1960		76,000
Wheaton Park	Wheaton, MD		1977		1967		72,000
Bradlee	Alexandria, VA		1984		1955		168,000
Chevy Chase Metro Plaza	Washington, DC		1985		1975		49,000
Montgomery Village Center	Gaithersburg, MD		1992		1969		198,000
Shoppes of Foxchase⁽¹⁾	Alexandria, VA		1994		1960		134,000
Frederick County Square	Frederick, MD		1995		1973		227,000
800 S. Washington Street	Alexandria, VA		1998/2003		1955/1959		44,000
Centre at Hagerstown	Hagerstown, MD		2002		2000		332,000
Frederick Crossing	Frederick, MD		2005		1999/2003		295,000
Randolph Shopping Center	Rockville, MD		2006		1972		82,000
Montrose Shopping Center	Rockville, MD		2006		1970		143,000
Gateway Overlook	Columbia, MD		2010		2007		223,000

Subtotal							2,245,000

⁽¹⁾	Development on approximately 60,000 square feet of the center was completed in December 2006.

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PROPERTIES	LOCATION	YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET*

Multifamily Buildings * / # units
3801 Connecticut Avenue / 308	Washington, DC		1963		1951		179,000
Roosevelt Towers / 191	Falls Church, VA		1965		1964		170,000
Country Club Towers / 227	Arlington, VA		1969		1965		163,000
Park Adams / 200	Arlington, VA		1969		1959		173,000
Munson Hill Towers / 279	Falls Church, VA		1970		1963		259,000
The Ashby at McLean / 256	McLean, VA		1996		1982		252,000
Walker House Apartments / 212	Gaithersburg, MD		1996		1971/2003⁽²⁾		159,000
Bethesda Hill Apartments / 195	Bethesda, MD		1997		1986		226,000
Bennett Park / 224	Arlington, VA		2007		2007		214,000
Clayborne / 74	Alexandria, VA		2008		2008		60,000
Kenmore Apartments / 374	Washington, DC		2008		1948		270,000

Subtotal (2,540 units)							2,125,000


Industrial Distribution / Flex Properties
Fullerton Business Center	Springfield, VA		1985		1980		104,000
The Alban Business Center	Springfield, VA		1996		1981/1982		87,000
Pickett Industrial Park	Alexandria, VA		1997		1973		246,000
Northern Virginia Industrial Park	Lorton, VA		1998		1968/1991		787,000
8900 Telegraph Road	Lorton, VA		1998		1985		32,000
Dulles South IV	Chantilly, VA		1999		1988		83,000
Sully Square	Chantilly, VA		1999		1986		95,000
Fullerton Industrial Center	Springfield, VA		2003		1980		137,000
8880 Gorman Road	Laurel, MD		2004		2000		141,000
Dulles Business Park Portfolio	Chantilly, VA		2004/2005		1999-2005		324,000
Albemarle Point	Chantilly, VA		2005		2001/2003/2005		207,000
Hampton Overlook	Capital Heights, MD		2006		1989		134,000
Hampton South	Capital Heights, MD		2006		1989/2005		168,000
9950 Business Parkway	Lanham, MD		2006		2005		102,000
270 Technology Park	Frederick, MD		2007		1986-1987		157,000
6100 Columbia Park Road	Landover, MD		2008		1969		150,000

Subtotal							2,954,000


TOTAL							13,146,000

*	Multifamily buildings are presented in gross square feet.

⁽²⁾	A 16 unit addition referred to as The Gardens at Walker House was completed in October 2003.

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Annualized base rent (ABR) is calculated as monthly base rent (cash basis) per the lease, as of the reporting period, multiplied by 12.

Debt to total market capitalization is total debt from the balance sheet divided by the sum of total debt from the balance sheet plus the market value of shares outstanding at the end of the period.

Adjusted EBITDA (a non-GAAP measure) is earnings attributable to the controlling interest before interest expense, taxes, depreciation, amortization, real estate impairment, gain on sale of real estate, gain/loss on extinguishment of debt and gain/loss from non-disposal activities.

Ratio of earnings to fixed charges is computed by dividing earnings attributable to the controlling interest by fixed charges. For this purpose, earnings consist of income from continuing operations (or net income if there are no discontinued operations) plus fixed charges, less capitalized interest. Fixed charges consist of interest expense (excluding interest expense from discontinued operations), including amortized costs of debt issuance, plus interest costs capitalized.

Debt service coverage ratio is computed by dividing earnings attributable to the controlling interest before interest expense, taxes, depreciation, amortization, real estate impairment, gain on sale of real estate, gain/loss on extinguishment of debt and gain/loss from non-disposal activities by interest expense (including interest expense from discontinued operations) and principal amortization.

Funds from operations (FFO) - The National Association of Real Estate Investment Trusts, Inc. (NAREIT) defines FFO (April, 2002 White Paper) as net income atributable to the controlling interest (computed in accordance with generally accepted accounting principles (GAAP)) excluding gains (or losses) from sales of property plus real estate depreciation and amortization. FFO is a non-GAAP measure.

Core Funds From Operations (Core FFO), a non-GAAP measure, is calculated by adjusting FFO for (1) gains or losses on extinguishment of debt, (2) costs related to the acquisition of properties and (3) real estate impairments, as appropriate.

Funds Available for Distribution (FAD), a non-GAAP measure, is calculated by subtracting from FFO recurring expenditures, tenant improvements, leasing incentives and leasing costs, that are capitalized and amortized and are necessary to maintain our properties and revenue stream, non-cash gain/loss from extinguishment of debt and straight line rents, then adding non-real estate depreciation and amortization, real estate impairment, non-cash fair value interest expense, adding or subtracting amortization of lease intangibles and amortization of restricted share compensation, as appropriate.

Core Funds Available for Distribution (Core FAD), a non-GAAP measure, is calculated by adjusting FAD for (1) cash gains or losses on extinguishment of debt, (2) costs related to the acquisition of properties and (3) real estate impairments, as appropriate.

Recurring capital expenditures represents non-accretive building improvements and leasing costs required to maintain current revenues. Recurring capital expenditures do not include acquisition capital that was taken into consideration when underwriting the purchase of a building or which are incurred to bring a building up to “operating standard.”

Rent increases on renewals and rollovers are calculated as the difference, weighted by square feet, of the net ABR due the first month after a term commencement date and the net ABR due the last month prior to the termination date of the former tenant’s term.

Same-store portfolio properties include all properties that were owned for the entirety of the current and prior year reporting periods.

Same-store portfolio net operating income (NOI) growth is the change in the NOI of the same-store portfolio properties from the prior reporting period to the current reporting period.

Physical occupancy is calculated as occupied square footage as a percentage of total square footage as of the last day of that period.

Economic occupancy is calculated as actual real estate rental revenue recognized for the period indicated as a percentage of gross potential real estate rental revenue for that period. We determine gross potential real estate rental revenue by valuing occupied units or square footage at contract rates and vacant units or square footage at market rates for comparable properties. We do not consider percentage rents and expense reimbursements in computing economic occupancy percentages.

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