8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) February 15, 2007

WASHINGTON REAL ESTATE INVESTMENT TRUST

(Exact name of registrant as specified in its charter)

Maryland	1-6622	53-0261100
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)
6110 Executive Boulevard, Suite 800, Rockville, Maryland		20852
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (301) 984-9400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

and

Item 7.01 Regulation FD Disclosure

A press release issued by the Registrant on February 15, 2007, regarding earnings for the three and twelve months ended December 31, 2006, is attached as Exhibit 99.1. Also, certain supplemental information not included in the press release is attached as Exhibit 99.2. This information is being furnished pursuant to Item 7.01 and Item 2.02 of Form 8-K. This information is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any Securities Act registration statements.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit 99.1	Press release issued February 15, 2007 regarding earnings for the three and twelve months ended December 31, 2006
Exhibit 99.2	Certain supplemental information not included in the press release

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WASHINGTON REAL ESTATE INVESTMENT TRUST
(Registrant)
By:	/s/ Laura M. Franklin
	(Signature)
	Laura M. Franklin
	Senior Vice President Accounting,
	Administration and Corporate Secretary

February 15, 2007

(Date)

Exhibit Index

Exhibit Number	Description
99.1	Press Release issued February 15, 2007 regarding earnings for the three and twelve months ended December 31, 2006.
99.2	Certain supplemental information not included in the press release

EX-99.1

Exhibit 99.1

CONTACT: Sara Grootwassink		6110 Executive Blvd., Suite 800 Rockville, Maryland 20852
Chief Financial Officer		Tel 301-984-9400
Direct Dial: 301-255-0820		Fax 301-984-9610
E-Mail: sgrootwassink@writ.com		www.writ.com
	Newspaper Quote: WRIT
Page 1 of 7	FOR IMMEDIATE RELEASE	February 15, 2007

WASHINGTON REAL ESTATE INVESTMENT TRUST ANNOUNCES

FOURTH QUARTER 2006 RESULTS

Washington Real Estate Investment Trust (WRIT) (NYSE: WRE) today reported the following financial results for the fourth quarter ended December 31, 2006:

Fourth Quarter

• Funds from Operations (FFO) ⁽¹⁾ for the quarter ended December 31, 2006 was $25.2 million, or $0.56 per diluted share, an increase of $2.4 million, or $0.02 per diluted share from the prior year.

• Net income for the quarter ended December 31, 2006 was $10.1 million, or $0.22 per diluted share, compared to $11.1 million, or $0.26 per diluted share in the same period one year ago. The decrease is primarily due to higher interest expense and, on a per share basis, due to increased dilution from the equity offering in June 2006.

Full Year

• Funds from Operations (FFO) for the year ended December 31, 2006 was $92.8 million, or $2.12 per diluted share, an increase of $5.4 million, or $0.05 per diluted share from the prior year.

• Net income for the year ended December 31, 2006 was $38.7 million, or $0.88 per diluted share, compared to $77.6 million, or $1.84 per diluted share in 2005. The decrease is primarily due to a $37.0 million gain on property disposal, higher interest expense, and higher depreciation and amortization associated with owning more properties.

FFO is a non-GAAP financial measure. A reconciliation of net income to FFO is provided on the attached income statement.

Operating Results

Core Net Operating Income ⁽³⁾ for the fourth quarter increased 4.7% compared to the same period one year ago, as a result of Core NOI increases in all of WRIT’s property sectors, as follows:

• Multifamily and Industrial properties’ Core NOI increased 12.0% and 3.5%, respectively, primarily due to higher rental rates achieved in both sectors.

• General purpose office properties’ Core NOI increased 5.4% primarily due to increased occupancy, 320 bps higher than the same period last year, primarily from the lease up of Maryland Trade Center I.

• Retail properties’ Core NOI increased 1.8% primarily due to the increased revenues from the Harris Teeter lease at The Shoppes at Foxchase.

• Medical office properties’ Core NOI increased 0.4%, with 98.5% core occupancy for the fourth quarter.

Core occupancy was 94.3% during the fourth quarter, an increase of 150 bps from the same period the prior year.

Washington Real Estate Investment Trust

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Development/Redevelopment Activity

During the fourth quarter, WRIT completed the redevelopment of The Shoppes at Foxchase in Alexandria, VA, a 133,000 square foot retail shopping center, with an approximate cost of $12.0 million. This retail center is anchored by the grocery store, Harris Teeter.

At year-end, three development projects were in progress:

• Bennett Park, formerly Rosslyn Towers, is a ground-up development project in Arlington, VA consisting of a high-rise and a mid-rise Class A apartment building with a total of 224 units and 5,900 square feet of retail space. Construction is anticipated to be completed on the high-rise building in third quarter 2007 and on the mid-rise in second quarter 2007. Total cost of the project is estimated to be $76.6 million.

• The Clayborne Apartments, formerly South Washington Street, is a ground-up development project in Alexandria, VA, adjacent to our 800 South Washington retail property. This project is a 75-unit Class Apartment building that will include 2,600 square feet of additional retail space. Construction is anticipated to be completed on the building in third quarter 2007. Total cost of the project is estimated to be $32.7 million.

• Dulles Station is a 180,000 square feet development project of office and retail space located in Herndon, VA. Phase One of the Dulles Station development is anticipated to be completed third quarter 2007 with an estimated cost of $52.0 million.

2006 Highlights

• WRIT acquired 14 properties for a total cost of $303 million during the year. The acquisitions include 533,100 square feet of general purpose office, 404,770 square feet of industrial, 227,200 square feet of retail shopping centers, and 337,100 square feet of medical office properties.

• WRIT raised over $350 million of capital, issuing $110 million of 3.875% Convertible Senior Notes, $150 million of 5.95% Senior Unsecured Notes, and 2.7 million common shares. In addition, WRIT entered into an unsecured revolving credit facility with an initial capacity of $200 million, an increase of $115 million from the prior facility.

• The Board added two Trustees, Mr. Edward S. Civera and Mr. Thomas E. Russell, III. Mr. George F. “Skip” McKenzie was appointed President and Chief Operating Officer effective May 30, 2006.

• WRIT increased its dividend for the 36^th consecutive year and achieved its 34^th consecutive year of increased FFO per share.

Subsequent Events

On January 17, 2007, WRIT issued $135 million of 3.875% Convertible Senior Notes due 2026. WRIT used the net proceeds from the offering to repay borrowings under its lines of credit and for general corporate purposes. The $15 million over-allotment option was exercised and closed on January 30, 2007.

On February 9, 2007 WRIT acquired a portfolio of five, single-story, industrial/flex buildings within 270 Technology Park in Frederick, Maryland for $26.5 million. The portfolio consists of 157,000 square feet and 595 parking spares. The acquisition was funded with cash from WRIT’s January 17, 2007 convertible debt offering, discussed above.

Conference Call Information

WRIT will conduct a Conference/Webcast Call to discuss 4^th Quarter Earnings on Friday, February 16, 2007 at 11:00 A.M., Eastern Standard Time. Conference call access information is as follows:

USA Toll Free Number:	1-888-271-8857
International Toll Number:	1-706-679-7697
Leader:	Sara Grootwassink
Conference ID:	5748531

Washington Real Estate Investment Trust

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The instant replay of the Conference Call will be available until March 2, 2007 at 11:59 PM Eastern Standard Time. Instant Replay access information is as follows:

USA Toll Free Number:	1-800-642-1687
International Toll Number:	1-706-645-9291
Conference ID:	5748531

The live on-demand webcast of the Conference Call will also be available on WRIT’s website at www.writ.com. On-line playback of the webcast will be available at www.writ.com for 30 days following the Conference Call.

About WRIT

WRIT is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington/Baltimore metropolitan region. WRIT owns a diversified portfolio of 83 properties consisting of 14 retail centers, 24 general purpose office properties, 13 medical office properties, 23 industrial/flex properties, 9 multi-family properties and land for development. WRIT’s dividends have increased every year for 36 consecutive years and FFO per share has increased every year for 34 consecutive years. WRIT shares are publicly traded on the New York Stock Exchange (symbol: WRE).

Note: WRIT’s press releases and supplemental financial information are available on the company website at www.writ.com or by contacting Investor Relations at (301) 984-9400.

Certain statements in this press release and the supplemental disclosures attached hereto 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, fluctuations in interest rates, availability of raw materials and labor costs, levels of competition, the effect of government regulation, the availability of capital, weather conditions, the timing and pricing of lease transactions and changes in general and local economic and real estate market conditions, and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2005 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

⁽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.

⁽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) amortization of restricted share and unit compensation, and adding or subtracting amortization of lease intangibles, 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⁾ For purposes of evaluating comparative operating performance, we categorize our properties as “core” or “non-core”. Core Operating NOI is calculated as real estate rental revenue less real estate operating expenses for those properties owned for the entirety of the periods being evaluated. Core Operating NOI is a non-GAAP measure.

Washington Real Estate Investment Trust

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Economic Occupancy Levels by Core Portfolio ⁽ⁱ⁾ and All Properties

	Core Portfolio				All Properties
Sector	4TH QTR 2006		4TH QTR 2005		4TH QTR 2006		4TH QTR 2005
Multifamily	94.0	%(ii)	92.0	%	94.0	%	92.0	%
Office Buildings	92.2	%	89.0	%	92.3	%	89.0	%
Medical Office	98.5	%	98.5	%	98.5	%	98.5	%
Retail Centers	99.0	%	98.6	%	94.9	%(iii)	98.6	%
Industrial/Flex Centers	93.2	%	94.9	%	92.9	%	94.9	%
Overall Portfolio	94.3	%	92.8	%	93.8	%	92.8	%

⁽ⁱ⁾ Core portfolio properties include all properties that were owned for the entirety of the current and prior year reporting periods. For Q4 2006 and Q4 2005, core portfolio properties exclude:

Office Acquisitions: 6565 Arlington Blvd, West Gude Office Park and The Ridges;

Medical Office Acquisitions: Alexandria Professional Center, 9707 Medical Center Drive, 15001 Shady Grove Rd, Plumtree Medical Center, 15005 Shady Grove Rd and The Crescent;

Retail Acquisitions: Randolph Shopping Center and Montrose Shopping Center, and

Industrial Acquisitions: Hampton Overlook, Hampton South and 9950 Business Parkway.

⁽ⁱⁱ⁾ Multifamily occupancy level for Q406 is 94.6% without the impact of units off-line for planned renovations at Bethesda Hill. The overall portfolio occupancy is 94.4% without this impact.

⁽ⁱⁱⁱ⁾ Montrose Shopping Center was 58% leased when purchased in May 2006.

Washington Real Estate Investment Trust

FOR IMMEDIATE RELEASE

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WASHINGTON REAL ESTATE INVESTMENT TRUST

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2006			2005			2006			2005
OPERATING RESULTS
Revenue
Real estate rental revenue	$	58,993		$	49,258		$	219,662		$	190,046
Expenses
Real estate expenses		18,254			15,041			67,269			58,116
Depreciation and amortization		15,074			11,694			54,170			47,161
General and administrative		2,461			1,644			12,622			8,005
		35,789			28,379			134,061			113,282
Other (expense) income:
Interest expense		(13,392	)		(10,074	)		(47,846	)		(37,743	)
Other income		269			263			906			918
Other income from property settlement		—			—			—			504
		(13,123	)		(9,811	)		(46,940	)		(36,321	)
Income from continuing operations		10,081			11,068			38,661			40,443
Discontinued operations:
Income (loss) from operations of properties sold or held for sale		—			—			—			184
Gain on property disposed		—			—			—			37,011
Net Income	$	10,081		$	11,068		$	38,661		$	77,638
Income from continuing operations	$	10,081		$	11,068		$	38,661		$	40,443
Other income from property settlement		—			—			—			(504	)
Continuing operations real estate depreciation and amortization		15,074			11,694			54,170			47,161
Funds from continuing operations	$	25,155		$	22,762		$	92,831		$	87,100
Income (loss) from discontinued operations before gain on disposal		—			—			—			184
Discontinued operations real estate depreciation and amortization		—			—			—			71
Funds from discontinued operations		—			—			—			255
Funds from operations(1)	$	25,155		$	22,762		$	92,831		$	87,355
Tenant improvements		(2,143	)		(3,520	)		(9,473	)		(8,932	)
External and internal leasing commissions capitalized		(1,554	)		(1,004	)		(5,595	)		(4,272	)
Recurring capital improvements		(1,648	)		(2,445	)		(8,685	)		(9,125	)
Straight-line rents, net		(757	)		(730	)		(3,093	)		(3,070	)
Non real estate depreciation & amortization of debt costs		765			479			2,453			1,745
Amortization of lease intangibles, net		197			(10	)		283			(10	)
Amortization and expensing of Restricted Share and Unit Compensation		1,081			299			3,464			1,134
Other		—			—			—			301
Funds Available for Distribution (2)	$	21,096		$	15,831		$	72,185		$	65,126

Certain prior year amounts have been reclassified to conform to the current presentation.

Washington Real Estate Investment Trust

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		Three Months Ended December 31,				Twelve Months Ended December 31,
Per Share Data		2006		2005		2006		2005
Income from continuing operations	(Basic)	$	0.22	$	0.26	$	0.89	$	0.96
	(Diluted)	$	0.22	$	0.26	$	0.88	$	0.96
Net income	(Basic)	$	0.22	$	0.26	$	0.89	$	1.85
	(Diluted)	$	0.22	$	0.26	$	0.88	$	1.84
Funds from continuing operations	(Basic)	$	0.56	$	0.54	$	2.13	$	2.07
	(Diluted)	$	0.56	$	0.54	$	2.12	$	2.06
Funds from operations	(Basic)	$	0.56	$	0.54	$	2.13	$	2.08
	(Diluted)	$	0.56	$	0.54	$	2.12	$	2.07
Dividends paid		$	0.4125	$	0.4025	$	1.6400	$	1.6000
Weighted average shares outstanding			44,894		42,013		43,679		42,069
Fully diluted weighted average shares outstanding			45,122		42,131		43,874		42,203

Washington Real Estate Investment Trust

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WASHINGTON REAL ESTATE INVESTMENT TRUST

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

	December 31, 2006			December 31, 2005
Assets
Land	$	294,977		$	226,217
Income producing property		1,300,824			1,024,702
		1,595,801			1,250,919
Accumulated depreciation and amortization		(290,003	)		(240,153	)
Net income producing property		1,305,798			1,010,766
Development in progress (4)		120,656			58,241
Total investment in real estate, net		1,426,454			1,069,007
Cash and cash equivalents		8,721			4,938
Restricted cash		4,151			1,764
Rents and other receivables, net of allowance for doubtful accounts of 3,635 and 2,916, respectively		32,632			25,258
Prepaid expenses and other assets		59,307			38,192
Total Assets	$	1,531,265		$	1,139,159
Liabilities
Notes payable	$	728,255		$	518,600
Mortgage notes payable		237,073			169,617
Lines of credit		61,000			24,000
Accounts payable and other liabilities		45,291			32,002
Advance rents		6,325			5,572
Tenant security deposits		9,651			7,393
Total Liabilities		1,087,595			757,184
Minority interest		1,739			1,670
Shareholders’ Equity
Shares of beneficial interest, $.01 par value; 100,000 shares authorized: 45,042 and 42,139 shares issued and outstanding, respectively		451			421
Additional paid-in capital		500,727			405,112
Distributions in excess of net income		(59,247	)		(25,228	)
Total Shareholders’ Equity		441,931			380,305
Total Liabilities and Shareholders’ Equity	$	1,531,265		$	1,139,159

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

⁽⁴⁾ Includes cost of land acquired for development.

EX-99.2

Exhibit 99.2

Supplemental Information

December 31, 2006

Contact: Sara Grootwassink Chief Financial Officer Direct Dial: (301) 255-0820 E-mail: sgrootwassink@writ.com 6110 Executive Boulevard Suite 800 Rockville, MD 20852 (301) 984-9400 (301) 984-9610 fax

Washington Real Estate Investment Trust

Supplemental Information

Table of Contents

December 31, 2006

Schedule	Page
About the Trust	2
Consolidated Statements of Operations	3
Consolidated Balance Sheets	4
Funds From Operations and Funds Available for Distribution	5
Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)	6
Long-Term Debt Analysis	7
Capital Analysis	8
Core Portfolio Net Operating Income (NOI) Growth & Rental Rate Growth	9
Core Portfolio Net Operating Income (NOI) Summary	10
Core Portfolio Net Operating Income (NOI) Detail for the Quarter	11
Core Portfolio Net Operating Income (NOI) Detail for the Year	12
Core Portfolio & Overall Economic Occupancy Levels by Sector	13
Schedule of Properties	14
Schedule of Properties (continued)	15
Commercial Leasing Summary	16
10 Largest Tenants - Based on Annualized Base Rent	17
Industry Diversification	18
Lease Expirations as of December 31, 2006	19
2006 Acquisition Summary	20
2006 Development Summary	21
12, 36 and 60 Month Total Returns Chart	22
Reporting Definitions	23

Washington Real Estate Investment Trust

About the Trust

Mission Statement

Washington Real Estate Investment Trust, founded in 1960 and headquartered in Rockville, Maryland, invests in a diversified range of income-producing property types. Our purpose is to acquire, develop and manage real estate investments in markets we know well and protect our shareholders from single property-type value fluctuations through diversified holdings. Our goal is to continue to safely increase earnings and shareholder value.

Company Background

We are a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington metropolitan region. As of quarter end we owned a diversified portfolio of 82 properties consisting of 14 retail centers, 24 office properties, 13 medical office properties, 22 industrial/flex properties and 9 multifamily properties. We also own land for development.

Our dividends have increased every year for 36 consecutive years and our Funds From Operations (“FFO”) per share has increased every year for 34 consecutive years. WRIT shares are publicly traded on the New York Stock Exchange (symbol: WRE).

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, fluctuations in interest rates, availability of raw materials and labor costs, levels of competition, the effect of government regulation, the availability of capital, weather conditions, the timing and pricing of lease transactions and changes in general and local economic and real estate market conditions, and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2005 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

2

Washington Real Estate Investment Trust

Consolidated Statements of Operations

(In thousands, except per share data)

(unaudited)

	Twelve Months Ended						Three Months Ended
OPERATING RESULTS	12/31/06			12/31/05			12/31/06			09/30/06			06/30/06			03/31/06			12/31/05
Real estate rental revenue	$	219,662		$	190,046		$	58,993		$	56,675		$	53,070		$	50,925		$	49,258
Real estate expenses	$	(67,269	)	$	(58,116	)	$	(18,254	)	$	(17,843	)	$	(15,656	)	$	(15,518	)	$	(15,041	)
	$	152,393		$	131,930		$	40,739		$	38,832		$	37,414		$	35,407		$	34,217
Real estate depreciation and amortization		(54,170	)		(47,161	)		(15,074	)		(14,138	)		(12,990	)		(11,968	)		(11,694	)
Income from real estate		98,223			84,769			25,665			24,694			24,424			23,439			22,523
Other income		906			918			269			293			175			170			263
Other income from property settlement		—			504			—			—			—			—			—
Interest expense		(47,846	)		(37,743	)		(13,392	)		(12,527	)		(11,604	)		(10,322	)		(10,074	)
General and administrative		(12,622	)		(8,005	)		(2,461	)		(2,230	)		(5,276	)		(2,655	)		(1,644	)
Income from continuing operations		38,661			40,443			10,081			10,230			7,719			10,632			11,068
Discontinued operations:
Income (loss) from operations of properties sold or held for sale		—			184			—			—			—			—			—
Gain on sale of real estate investment		—			37,011			—			—			—			—			—
Income (loss) from discontinued operations		—			37,195			—			—			—			—			—
Net Income	$	38,661		$	77,638		$	10,081		$	10,230		$	7,719		$	10,632		$	11,068
Per Share Data
Net Income	$	0.88		$	1.84		$	0.22		$	0.23		$	0.18		$	0.25		$	0.26
Fully diluted weighted average shares outstanding		43,874			42,203			45,122			45,093			43,037			42,197			42,131
Percentage of Revenues:
Real estate expenses		30.6	%		30.6	%		30.9	%		31.5	%		29.5	%		30.5	%		30.5	%
General and administrative		5.7	%		4.2	%		4.2	%		3.9	%		9.9	%		5.2	%		3.3	%
Ratios:
EBITDA / Interest expense		2.9x			3.3x			2.9 x			2.9 x			2.8 x			3.2 x			3.2 x
Income from continuing operations/Total real estate revenue		17.6	%		21.3	%		17.1	%		18.0	%		14.5	%		20.9	%		22.5	%
Net income/Total real estate revenue		17.6	%		40.9	%		17.1	%		18.0	%		14.5	%		20.9	%		22.5	%

3

Washington Real Estate Investment Trust

Consolidated Balance Sheets

(In thousands)

(unaudited)

	December 31, 2006			September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005
Assets
Land	$	294,977		$	294,977		$	267,509		$	233,265		$	226,217
Income producing property		1,300,824			1,282,203			1,158,505			1,047,939			1,024,702
		1,595,801			1,577,180			1,426,014			1,281,204			1,250,919
Accumulated depreciation and amortization		(290,003	)		(276,220	)		(263,311	)		(251,284	)		(240,153	)
Net income producing property		1,305,798			1,300,960			1,162,703			1,029,920			1,010,766
Development in progress, including land held for development		120,656			110,394			90,612			69,820			58,241
Total investment in real estate, net		1,426,454			1,411,354			1,253,315			1,099,740			1,069,007
Cash and cash equivalents		8,721			11,832			13,970			2,981			4,938
Restricted cash		4,151			4,692			2,540			2,401			1,764
Rents and other receivables, net of allowance for doubtful accounts		32,632			30,403			29,057			26,955			25,258
Prepaid expenses and other assets		59,307			55,218			44,913			40,704			38,192
Total Assets	$	1,531,265		$	1,513,499		$	1,343,795		$	1,172,781		$	1,139,159
Liabilities and Shareholders’ Equity
Notes payable	$	728,255		$	728,216		$	618,662		$	518,656		$	518,600
Mortgage notes payable		237,073			238,051			178,834			168,965			169,617
Lines of credit/short-term note payable		61,000			28,000			19,000			59,000			24,000
Accounts payable and other liabilities		45,291			52,325			54,093			36,421			32,002
Advance rents		6,325			6,599			6,384			5,531			5,572
Tenant security deposits		9,651			9,501			8,513			7,575			7,393
Total Liabilities		1,087,595			1,062,692			885,486			796,148			757,184
Minority interest		1,739			1,717			1,699			1,687			1,670
Shareholders’ Equity
Shares of beneficial interest, $0.01 par value;
100,000 shares authorized		451			450			450			422			421
Additional paid-in capital		500,727			499,393			498,577			406,098			405,112
Distributions in excess of net income		(59,247	)		(50,753	)		(42,417	)		(31,574	)		(25,228	)
Total Shareholders’ Equity		441,931			449,090			456,610			374,946			380,305
Total Liabilities and Shareholders’ Equity	$	1,531,265		$	1,513,499		$	1,343,795		$	1,172,781		$	1,139,159
Total Debt / Total Market Capitalization		0.36:1			0.36:1			0.33:1			0.35:1			0.36:1

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

4

Washington Real Estate Investment Trust

Funds From Operations and Funds Available for Distribution

(In thousands, except per share data)

(unaudited)

	Twelve Months Ended						Three Months Ended
	12/31/06			12/31/05			12/31/2006			9/30/2006			6/30/2006			03/31/06			12/31/05
Funds From Operations(1)
Net Income	$	38,661		$	77,638		$	10,081		$	10,230		$	7,719		$	10,632		$	11,068
Real estate depreciation and amortization		54,170			47,161			15,074			14,138			12,990			11,968			11,694
Discontinued operations:
Gain on property disposed		—			(37,011	)		—			—			—			—			—
Real estate depreciation and amortization		—			71			—			—			—			—			—
Other income from property settlement		—			(504	)		—			—			—			—			—
Funds From Operations (FFO)	$	92,831		$	87,355		$	25,155		$	24,368		$	20,709		$	22,600		$	22,762
FFO per share - basic	$	2.13		$	2.08		$	0.56		$	0.54		$	0.48		$	0.54		$	0.54
FFO per share - fully diluted	$	2.12		$	2.07		$	0.56		$	0.54		$	0.48		$	0.54		$	0.54
Funds Available for Distribution(2)
Tenant Improvements		(9,473	)		(8,932	)		(2,143	)		(2,602	)		(2,033	)		(2,695	)		(3,520	)
External and Internal Leasing Commissions Capitalized		(5,595	)		(4,272	)		(1,554	)		(1,604	)		(1,477	)		(960	)		(1,004	)
Recurring Capital Improvements		(8,685	)		(9,125	)		(1,648	)		(2,019	)		(2,724	)		(2,295	)		(2,445	)
Straight-Line Rent, Net		(3,093	)		(3,070	)		(757	)		(836	)		(686	)		(804	)		(730	)
Non-real estate depreciation and amortization		2,453			1,745			765			640			554			495			479
Amortization of lease intangibles, net		283			(10	)		197			91			(17	)		5			(10	)
Amortization and expensing of restricted share and unit compensation		3,464			1,134			1,081			556			1,487			340			299
Other		—			301			—			—			—			—			—
Funds Available for Distribution (FAD)	$	72,185		$	65,126		$	21,096		$	18,594		$	15,813		$	16,686		$	15,831
Total Dividends Paid	$	72,688		$	67,360		$	18,580		$	18,567		$	18,562		$	16,979		$	16,963
Average shares - basic		43,679			42,069			44,894			44,874			42,852			42,052			42,013
Average shares - fully diluted		43,874			42,203			45,122			45,093			43,037			42,197			42,131

⁽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 and adding or subtracting the amortization of lease intangibles 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.

5

Washington Real Estate Investment Trust

Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)

(In thousands)

(unaudited)

	Three Months Ended
	12/31/06			09/30/06			06/30/06			03/31/06			12/31/05
EBITDA(1)
Net income	$	10,081		$	10,230		$	7,719		$	10,632		$	11,068
Add:
Interest expense		13,392			12,527			11,604			10,322			10,074
Real estate depreciation and amortization		15,074			14,138			12,990			11,968			11,694
Non-real estate depreciation		117			107			87			73			71
Less:
Other income		(269	)		(293	)		(175	)		(170	)		(263	)
EBITDA	$	38,395		$	36,709		$	32,225		$	32,825		$	32,644

⁽¹⁾ EBITDA is earnings before interest, taxes, depreciation and amortization. We consider EBITDA to be an appropriate supplemental performance measure because it eliminates depreciation, interest and the gain (loss) from property dispositions, which permits investors to view income from operations without the effect of non-cash depreciation or the cost of debt. EBITDA is a non-GAAP measure.

6

Washington Real Estate Investment Trust

Long-Term Debt Analysis

(In thousands, except per share amounts)

	December 31, 2006			September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005
Balances Outstanding
Secured
Conventional fixed rate	$	237,073		$	238,051		$	178,834		$	168,965		$	169,617
Secured total		237,073			238,051			178,834			168,965			169,617
Unsecured
Fixed rate bonds and notes		728,255			728,216			618,662			518,656			518,600
Credit facility		61,000			28,000			19,000			59,000			24,000
Unsecured total		789,255			756,216			637,662			577,656			542,600
Total	$	1,026,328		$	994,267		$	816,496		$	746,621		$	712,217
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		5.5	%		5.5	%		5.9	%		5.9	%		5.9	%
Credit facilities		6.0	%		5.9	%		5.9	%		5.3	%		5.0	%
Unsecured total		5.6	%		5.5	%		5.9	%		5.8	%		5.8	%
Average		5.6	%		5.6	%		5.9	%		5.9	%		5.9	%
Maturity Schedule
	Future Maturities of Debt
Year	Secured Debt			Unsecured Debt			Credit Facilities			Total Debt			Interest Rate
2007	$	11,264		$	—		$	—		$	11,264			6.4	%
2008		3,571			60,000			28,000			91,571			6.4	%
2009		53,768			—			—			53,768			7.0	%
2010		25,428			—			33,000			58,428			6.0	%
2011		12,763			150,000			—			162,763			5.9	%
2012		20,483			50,000			—			70,483			5.0	%
2013		105,396			60,000			—			165,396			5.5	%
2014		205			100,000			—			100,205			5.3	%
2015		216			150,000			—			150,216			5.4	%
Thereafter		3,979			160,000			—			163,979			5.0	%
Total maturities	$	237,073		$	730,000		$	61,000		$	1,028,073			5.6	%

Weighted average maturity = 7.8 years

Note: The current balance outstanding of the fixed rate bonds and notes is shown net of discounts/premiums in the amount of $1,745,045.

7

Washington Real Estate Investment Trust

Capital Analysis

(In thousands, except per share amounts)

	December 31, 2006			September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005
Market Data
Shares Outstanding		45,042			45,011			44,998			42,183			42,139
Market Price per Share	$	40.00		$	39.80		$	36.70		$	33.09		$	30.35
Equity Market Capitalization	$	1,801,680		$	1,791,438		$	1,651,427		$	1,395,835		$	1,278,919
Total Debt	$	1,026,328		$	994,267		$	816,496		$	746,621		$	712,217
Total Market Capitalization	$	2,828,008		$	2,785,705		$	2,467,923		$	2,142,456		$	1,991,136
Total Debt to Market Capitalization		0.36:1			0.36:1			0.33:1			0.35:1			0.36:1
Earnings to Fixed Charges(1)		1.6 x			1.7 x			1.6 x			1.9 x			2.0 x
Debt Service Coverage Ratio(2)		2.7 x			2.8 x			2.6 x			3.0 x			3.0 x
Dividend Data
Total Dividends Paid	$	18,580		$	18,567		$	18,562		$	16,979		$	16,963
Common Dividend per Share	$	0.4125		$	0.4125		$	0.4125		$	0.4025		$	0.4025
Payout Ratio (FFO per share basis)		73.7	%		76.4	%		85.9	%		74.5	%		74.5	%

⁽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 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 earnings before interest income and expense, depreciation, amortization and gain on sale of real estate by interest expense and principal amortization.

8

Washington Real Estate Investment Trust

Core Portfolio Net Operating Income (NOI) Growth & Rental Rate Growth

2006 vs. 2005

Cash Basis
	Fourth Quarter(1)				Year(2)
Sector	NOI Growth		Rental Rate Growth		NOI Growth		Rental Rate Growth
Multifamily	11.9	%	6.0	%	8.6	%	6.3	%
Office Buildings	6.9	%	1.6	%	6.4	%	2.0	%
Medical Office Buildings	2.6	%	2.7	%	3.4	%	2.8	%
Retail Centers	1.7	%	7.4	%	6.9	%	8.3	%
Industrial / Flex Properties	5.6	%	3.3	%	1.9	%	3.4	%
Overall Core Portfolio	5.9	%	3.6	%	5.6	%	3.9	%
GAAP Basis
	Fourth Quarter(1)				Year(2)
Sector	NOI Growth		Rental Rate Growth		NOI Growth		Rental Rate Growth
Multifamily	12.0	%	6.0	%	8.7	%	6.4	%
Office Buildings	5.4	%	0.1	%	4.7	%	1.5	%
Medical Office Buildings	0.4	%	0.8	%	-0.3	%	0.6	%
Retail Centers	1.8	%	6.8	%	7.7	%	8.5	%
Industrial / Flex Properties	3.5	%	2.3	%	1.4	%	2.6	%
Overall Core Portfolio	4.7	%	2.5	%	4.7	%	3.4	%

¹ Non-core acquired properties were: Hampton Overlook, Hampton South, Alexandria Professional Center, 9707 Medical Center Dr., 15001 Shady Grove Rd., Plumtree Medical Center, Randolph Shopping Center, Montrose Shopping Center, 9950 Business Parkway, 15005 Shady Grove Road, 6565 Arlington Blvd, West Gude Drive, The Ridges and The Crescent.

² Non-core acquired properties were: from 2005: DBP Coleman, Frederick Crossing, Albemarle; from 2006: Hampton Overlook, Hampton South, Alexandria Professional Center, 9707 Medical Center Dr., 15001 Shady Grove Rd., Plumtree Medical Center, Randolph Shopping Center, Montrose Shopping Center, 9950 Business Parkway, 15005 Shady Grove Road, 6565 Arlington Blvd, West Gude Drive, The Ridges and The Crescent.

9

Washington Real Estate Investment Trust

Core Portfolio Net Operating Income (NOI) Summary

(In Thousands)

	Three Months Ended December 31,
	2006		2005		%Change
Cash Basis:
Multifamily	$	4,877	$	4,359	11.9	%
Office Buildings		13,584		12,707	6.9	%
Medical Office Buildings		3,319		3,234	2.6	%
Retail Centers		6,558		6,446	1.7	%
Industrial/Flex		7,105		6,729	5.6	%
	$	35,443	$	33,475	5.9	%
GAAP Basis:
Multifamily	$	4,883	$	4,361	12.0	%
Office Buildings		13,725		13,023	5.4	%
Medical Office Buildings		3,329		3,316	0.4	%
Retail Centers		6,764		6,642	1.8	%
Industrial/Flex		7,115		6,875	3.5	%
	$	35,816	$	34,217	4.7	%

10

Washington Real Estate Investment Trust

Core Portfolio Net Operating Income (NOI) Detail

(In Thousands)

	Three Months Ended December 31, 2006
	Multifamily			Office			Medical Office			Retail			Industrial			Corporate and Other			Total
Real estate rental revenue
Core Portfolio	$	8,377		$	20,996		$	4,507		$	8,626		$	9,106		$	—		$	51,612
Non-core- acquired 1		—			3,116			2,613			849			803			—			7,381
Total		8,377			24,112			7,120			9,475			9,909			—			58,993
Real estate expenses
Core Portfolio		3,494			7,271			1,178			1,862			1,991			—			15,796
Non-core- acquired 1		—			1,104			931			207			216			—			2,458
Total		3,494			8,375			2,109			2,069			2,207			—			18,254
Net Operating Income (NOI)
Core Portfolio		4,883			13,725			3,329			6,764			7,115			—			35,816
Non-core- acquired 1		—			2,012			1,682			642			587			—			4,923
Total	$	4,883		$	15,737		$	5,011		$	7,406		$	7,702		$	—		$	40,739
Core Portfolio NOI GAAP Basis (from above)	$	4,883		$	13,725		$	3,329		$	6,764		$	7,115		$	—		$	35,816
Straight-line revenue, net for core properties		(6	)		(103	)		(34	)		(148	)		(103	)		—			(394	)
FAS 141 Min Rent		—			(44	)		24			(60	)		89			—			9
Amortization of lease intangibles for core properties		—			6			—			2			4			—			12
Core portfolio NOI, Cash Basis	$	4,877		$	13,584		$	3,319		$	6,558		$	7,105		$	—		$	35,443
Reconciliation of NOI to Net Income
Total NOI	$	4,883		$	15,737		$	5,011		$	7,406		$	7,702		$	—		$	40,739
Other revenue		—			—			—			—			—			269			269
Interest expense		(913	)		(778	)		(1,182	)		(346	)		(394	)		(9,779	)		(13,392	)
Depreciation and amortization		(1,621	)		(6,541	)		(2,080	)		(1,744	)		(2,925	)		(163	)		(15,074	)
General and administrative		—			—			—			—			—			(2,461	)		(2,461	)
Net Income	$	2,349		$	8,418		$	1,749		$	5,316		$	4,383		$	(12,134	)	$	10,081
	Three Months Ended December 31, 2005
	Multifamily			Office			Medical Office			Retail			Industrial			Corporate and Other			Total
Real estate rental revenue
Core Portfolio	$	7,663		$	19,690		$	4,484		$	8,417		$	9,004		$	—		$	49,258
Non-core- acquired 1		—			—			—			—			—			—			—
Total		7,663			19,690			4,484			8,417			9,004			—			49,258
Real estate expenses
Core Portfolio		3,302			6,667			1,168			1,775			2,129			—			15,041
Non-core- acquired 1		—			—			—			—			—			—			—
Total		3,302			6,667			1,168			1,775			2,129			—			15,041
Net Operating Income (NOI)
Core Portfolio		4,361			13,023			3,316			6,642			6,875			—			34,217
Non-core- acquired 1		—			—			—			—			—			—			—
Total	$	4,361		$	13,023		$	3,316		$	6,642		$	6,875		$	—		$	34,217
Core Portfolio NOI GAAP Basis (from above)	$	4,361		$	13,023		$	3,316		$	6,642		$	6,875		$	—		$	34,217
Straight-line revenue, net for core properties		(2	)		(245	)		(111	)		(126	)		(246	)		—			(730	)
FAS 141 Min Rent		—			(72	)		27			(70	)		95			—			(20	)
Amortization of lease intangibles for core properties		—			1			2			—			5			—			8
Core portfolio NOI, Cash Basis	$	4,359		$	12,707		$	3,234		$	6,446		$	6,729		$	—		$	33,475
Reconciliation of NOI to Net Income
Total NOI	$	4,361		$	13,023		$	3,316		$	6,642		$	6,875		$	—		$	34,217
Other revenue		—			—			—			—			—			263			263
Interest expense		(913	)		—			(777	)		(342	)		(395	)		(7,647	)		(10,074	)
Depreciation and amortization		(1,417	)		(5,160	)		(1,254	)		(1,263	)		(2,440	)		(160	)		(11,694	)
General and administrative		—			—			—			—			—			(1,644	)		(1,644	)
Net Income	$	2,031		$	7,863		$	1,285		$	5,037		$	4,040		$	(9,188	)	$	11,068

¹ Non-core acquired properties were: Hampton Overlook, Hampton South, Alexandria Professional Center, 9707 Medical Center Dr., 15001 Shady Grove Rd., Plumtree Medical Center, Randolph Shopping Center, Montrose Shopping Center, 9950 Business Parkway, 15005 Shady Grove Road, 6565 Arlington Blvd, West Gude Drive, The Ridges and The Crescent.

11

Washington Real Estate Investment Trust

Core Portfolio Net Operating Income (NOI) Detail

(In Thousands)

	Twelve Months Ended December 31, 2006
	Multifamily			Office			Medical Office			Retail			Industrial			Corporate and Other			Total
Real estate rental revenue
Core Portfolio	$	32,478		$	80,113		$	18,094		$	30,545		$	30,234		$	—		$	191,464
Non-core- acquired 1		—			6,700			6,566			6,718			8,214			—			28,198
Total		32,478			86,813			24,660			37,263			38,448			—			219,662
Real estate expenses
Core Portfolio		13,220			27,704			4,759			6,718			6,787			—			59,188
Non-core- acquired 1		—			2,160			2,427			1,265			2,229			—			8,081
Total		13,220			29,864			7,186			7,983			9,016			—			67,269
Net Operating Income (NOI)
Core Portfolio		19,258			52,409			13,335			23,827			23,447			—			132,276
Non-core- acquired 1		—			4,540			4,139			5,453			5,985			—			20,117
Total	$	19,258		$	56,949		$	17,474		$	29,280		$	29,432		$	—		$	152,393
Core Portfolio NOI GAAP Basis (from above)	$	19,258		$	52,409		$	13,335		$	23,827		$	23,447		$	—		$	132,276
Straight-line revenue, net for core properties		(23	)		(784	)		(259	)		(539	)		(266	)		—			(1,871	)
FAS 141 Min Rent		—			(112	)		104			99			252			—			343
Amortization of lease intangibles for core properties		—			19			—			2			—			—			21
Core portfolio NOI, Cash Basis	$	19,235		$	51,532		$	13,180		$	23,389		$	23,433		$	—		$	130,769
Reconciliation of NOI to Net Income
Total NOI	$	19,258		$	56,949		$	17,474		$	29,280		$	29,432		$	—		$	152,393
Other revenue		—			—			—			—			—			906			906
Interest expense		(3,653	)		(1,083	)		(3,942	)		(1,378	)		(1,788	)		(36,002	)		(47,846	)
Depreciation and amortization		(6,236	)		(23,253	)		(7,058	)		(6,231	)		(10,959	)		(433	)		(54,170	)
General and administrative		—			—			—			—			—			(12,622	)		(12,622	)
Net Income	$	9,369		$	32,613		$	6,474		$	21,671		$	16,685		$	(48,151	)	$	38,661
	Twelve Months Ended December 31, 2005
	Multifamily			Office			Medical Office			Retail			Industrial			Corporate and Other			Total
Real estate rental revenue
Core Portfolio	$	30,529		$	76,055		$	18,024		$	28,425		$	30,036		$	—		$	183,069
Non-core- acquired 1		—			921			—			3,482			2,574			—			6,977
Total		30,529			76,976			18,024			31,907			32,610			—			190,046
Real estate expenses
Core Portfolio		12,816			26,015			4,649			6,296			6,906			—			56,682
Non-core- acquired 1		—			262			—			583			589			—			1,434
Total		12,816			26,277			4,649			6,879			7,495			—			58,116
Net Operating Income (NOI)
Core Portfolio		17,713			50,040			13,375			22,129			23,130			—			126,387
Non-core- acquired 1		—			659			—			2,899			1,985			—			5,543
Total	$	17,713		$	50,699		$	13,375		$	25,028		$	25,115		$	—		$	131,930
Core Portfolio NOI GAAP Basis (from above)	$	17,713		$	50,040		$	13,375		$	22,129		$	23,130		$	—		$	126,387
Straight-line revenue, net for core properties		(8	)		(1,399	)		(740	)		(360	)		(378	)		—			(2,885	)
FAS 141 Min Rent		—			(207	)		109			119			253			—			274
Amortization of lease intangibles for core properties		—			1			—			—			—			—			1
Core portfolio NOI, Cash Basis	$	17,705		$	48,435		$	12,744		$	21,888		$	23,005		$	—		$	123,777
Reconciliation of NOI to Net Income
Total NOI	$	17,713		$	50,699		$	13,375		$	25,028		$	25,115		$	—		$	131,930
Other revenue		—			—			—			—			—			918			918
Non-Disposal Gain		—			—			—			—			—			504			504
Interest expense		(4,025	)		—			(4,226	)		(1,082	)		(1,921	)		(26,489	)		(37,743	)
Depreciation and amortization		(5,173	)		(20,383	)		(4,882	)		(7,577	)		(8,660	)		(486	)		(47,161	)
General and administrative		—			—			—			—			—			(8,005	)		(8,005	)
Discontinued operations2		—			34,280			—			—			2,915			—			37,195
Net Income	$	8,515		$	64,596		$	4,267		$	16,369		$	17,449		$	(33,558	)	$	77,638

¹ Non-core acquired properties were: from 2005: DBP Coleman, Frederick Crossing, Albemarle; from 2006: Hampton Overlook, Hampton South, Alexandria Professional Center, 9707 Medical Center Dr., 15001 Shady Grove Rd., Plumtree Medical Center, Randolph Shopping Center, Montrose Shopping Center, 9950 Business Parkway, 15005 Shady Grove Road, 6565 Arlington Blvd, West Gude Drive, The Ridges and The Crescent.

² Discontinued operations for 2005 were 7700 Leesburg Pike, Tycon II, Tycon III and Pepsi Distribution Center

12

Washington Real Estate Investment Trust

Core Portfolio & Overall Economic Occupancy Levels by Sector

Q4 2006 vs. Q4 2005

GAAP Basis
	Core Portfolio				All Properties
Sector	4th QTR 2006		4th QTR 2005		4th QTR 2006		4th QTR 2005
Multifamily	94.0	%(1)	92.0	%	94.0	%	92.0	%
Office Buildings	92.2	%	89.0	%	92.3	%	89.0	%
Medical Office Buildings	98.5	%	98.5	%	98.5	%	98.5	%
Retail Centers	99.0	%	98.6	%	94.9	%	98.6	%
Industrial / Flex Properties	93.2	%	94.9	%	92.9	%	94.9	%
Overall Portfolio	94.3	%	92.8	%	93.8	%	92.8	%

⁽¹⁾ Multifamily occupancy level for Q4 ‘06 is 94.6% without the impact of units off-line for planned renovations at Bethesda Hill. The overall portfolio is 94.4% occupied without this impact.

13

Washington Real Estate Investment Trust

Schedule of Properties

December 31, 2006

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
The Lexington Building	Rockville, MD	1993	1970	46,000
The Saratoga Building	Rockville, MD	1993	1977	58,000
Brandywine Center	Rockville, MD	1993	1969	35,000
6110 Executive Boulevard	Rockville, MD	1995	1971	198,000
1220 19th Street	Washington, DC	1995	1976	102,000
Maryland Trade Center I	Greenbelt, MD	1996	1981	184,000
Maryland Trade Center II	Greenbelt, MD	1996	1984	158,000
1600 Wilson Boulevard	Arlington, VA	1997	1973	166,000
7900 Westpark Drive	McLean, VA	1997	1972/1986/19991	523,000
600 Jefferson Plaza	Rockville, MD	1999	1985	112,000
1700 Research Boulevard	Rockville, MD	1999	1982	101,000
Parklawn Plaza	Rockville, MD	1999	1986	40,000
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 Blvd	Falls Church, VA	2006	1967/1998	140,000
West Gude Drive	Rockville, MD	2006	1984/1986/1988	289,000
The Ridges	Gaithersburg, MD	2006	1990	104,000
Subtotal				3,542,000
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
The Crescent	Gaithersburg, MD	2006	1989	49,000
Subtotal				873,000
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	Alexandria, VA	1994	1960	128,000
Frederick County Square	Frederick, MD	1995	1973	227,000
800 S. Washington Street2	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
Subtotal				2,016,000

¹ A 49,000 square foot addition to 7900 Westpark Drive was completed in September 1999.

² South Washington Street includes 718 Jefferson Street, acquired in May 2003 to complete the ownership of the entire block of 800 S. Washington Street. See Development Summary on page 19.

14

Washington Real Estate Investment Trust

Schedule of Properties (Cont.)

December 31, 2006

PROPERTIES	LOCATION	YEAR ACQUIRED	YEAR CONSTRUCTED	NET RENTABLE* SQUARE FEET
Multifamily Buildings * / # units
3801 Connecticut Avenue / 307	Washington, DC	1963	1951	179,000
Roosevelt Towers / 190	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 / 250	McLean, VA	1996	1982	252,000
Walker House Apartments / 212	Gaithersburg, MD	1996	1971/20034	159,000
Bethesda Hill Apartments / 194	Bethesda, MD	1997	1986	226,000
Avondale / 236	Laurel, MD	1999	1987	170,000
Subtotal (2,095 units)				1,751,000
Industrial Distribution / Flex Properties
Fullerton Business Center	Springfield, VA	1985	1980	104,000
Charleston Business Center	Rockville, MD	1993	1973	85,000
Tech 100 Industrial Park	Elkridge, MD	1995	1990	166,000
Crossroads Distribution Center	Elkridge, MD	1995	1987	85,000
The Alban Business Center	Springfield, VA	1996	1981/1982	87,000
The Earhart Building	Chantilly, VA	1996	1987	92,000
Ammendale Technology Park I	Beltsville, MD	1997	1985	167,000
Ammendale Technology Park II	Beltsville, MD	1997	1986	107,000
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
Amvax	Beltsville, MD	1999	1986	31,000
Sullyfield Center	Chantilly, VA	2001	1985	244,000
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
Subtotal				3,624,000
TOTAL				11,806,000

* Multifamily buildings are presented in gross square feet.

⁴ A 16 unit addition referred to as The Gardens at Walker House was completed in October 2003.

15

Washington Real Estate Investment Trust

Commercial Leasing Summary

Three months and Twelve months ended 12/31/06

	4th Quarter 2006						YTD 2006
Gross Leasing Square Footage
Office Buildings		82,398						597,648
Medical Office Buildings		54,077						119,948
Retail Centers		13,784						123,160
Industrial Centers		134,115						770,715
Total		284,374						1,611,471
Weighted Average Term (yrs)
Office Buildings		5.4						4.6
Medical Office Buildings		8.9						8.2
Retail Centers		6.9						5.3
Industrial Centers		4.4						4.2
Total		5.7						4.7
Rental Rate Increases *:	GAAP			CASH			GAAP			CASH
Rate on expiring leases
Office Buildings	$	25.76		$	26.15		$	25.29		$	26.29
Medical Office Buildings		25.48			25.20			27.18			27.42
Retail Centers		33.95			34.45			23.35			23.90
Industrial Centers		8.10			8.39			8.17			8.50
Total	$	17.78		$	17.99		$	17.09		$	17.68
Rate on new and renewal leases
Office Buildings	$	30.17		$	28.77		$	27.59		$	26.19
Medical Office Buildings		29.84			26.71			32.60			29.22
Retail Centers		43.85			40.37			28.21			26.55
Industrial Centers		9.73			9.26			9.34			8.89
Total	$	21.13		$	19.74		$	19.28		$	18.17
Percentage Increase
Office Buildings		17.12	%		10.02	%		9.09	%		-0.38	%
Medical Office Buildings		17.11	%		5.99	%		19.94	%		6.56	%
Retail Centers		29.16	%		17.18	%		20.81	%		11.09	%
Industrial Centers		20.12	%		10.37	%		14.32	%		4.59	%
Total		18.84	%		9.73	%		12.81	%		2.77	%
	Total Dollars			Dollars per Square Foot			Total Dollars			Dollars per Square Foot
Tenant Improvements and Leasing Costs
Office Buildings	$	1,550,497		$	18.82		$	10,199,432		$	17.07
Medical Office Buildings		1,792,265			33.14			3,367,327			28.07
Retail Centers		93,245			6.76			674,477			5.48
Industrial Centers		868,554			6.48			3,154,888			4.09
Total	$	4,304,561		$	15.14		$	17,396,124		$	10.80

* Includes the impact of leases executed on vacant space acquired through acquisition in 2006 totaling 46,372 square feet for the quarter and 91,665 square feet year to date. For these leases, the rates on expiring leases are based on the rates underwritten in our investment analyses.

16

Washington Real Estate Investment Trust

10 Largest Tenants - Based on Annualized Rent

December 31, 2006

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	41	4.95	%	210,354	2.28	%
Sunrise Senior Living, Inc.	1	81	2.82	%	180,066	1.95	%
General Services Administration	8	32	2.33	%	286,434	3.11	%
INOVA Health Care Services	4	45	1.56	%	80,722	0.88	%
URS Corporation	1	84	1.55	%	97,208	1.05	%
George Washington University	2	18	1.36	%	73,915	0.80	%
Lockheed Corporation	3	26	1.24	%	94,693	1.03	%
Sun Microsystems, Inc.	1	60	1.05	%	65,443	0.71	%
United Communications Group	1	17	1.00	%	63,441	0.69	%
Westat, Inc.	2	37	1.00	%	81,711	0.89	%
Total/Weighted Average		45	18.86	%	1,233,987	13.39	%

17

Washington Real Estate Investment Trust

Industry Diversification

December 31, 2006

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	$	41,464,558	23.68	%	1,942,832	21.07	%
Ambulatory Health Care Services		28,198,626	16.10	%	1,013,252	10.99	%
Credit Intermediation and Related Activities		15,272,632	8.72	%	457,944	4.97	%
Executive, Legislative & Other General Government Support		7,738,872	4.42	%	420,187	4.56	%
Nursing and Residential Care Facilities		5,414,988	3.09	%	203,324	2.20	%
Food Services and Drinking Places		5,409,442	3.09	%	227,203	2.46	%
Religious, Grantmaking, Civic, Professional & Similar Org.		4,469,020	2.55	%	157,121	1.70	%
Educational Services		4,358,252	2.49	%	171,071	1.86	%
Food and Beverage Stores		4,035,188	2.30	%	256,698	2.78	%
Administrative and Support Services		3,813,350	2.18	%	257,851	2.80	%
Transportation Equipment Manufacturing		3,262,868	1.86	%	170,278	1.85	%
Miscellaneous Store Retailers		3,250,634	1.86	%	245,166	2.66	%
Furniture and Home Furnishing Stores		3,144,554	1.80	%	218,429	2.37	%
Specialty Trade Contractors		3,045,213	1.74	%	383,858	4.16	%
Merchant Wholesalers-Durable Goods		2,818,209	1.61	%	316,601	3.43	%
Personal and Laundry Services		2,742,359	1.57	%	129,781	1.41	%
Computer & Electronic Product Manufacturing		2,609,462	1.49	%	209,784	2.27	%
Publishing Industries (except Internet)		2,276,961	1.30	%	89,994	0.98	%
Clothing & Clothing Accessories Stores		2,262,092	1.29	%	144,761	1.57	%
Insurance Carriers and Related Activities		2,012,544	1.15	%	100,859	1.09	%
Real Estate		1,891,621	1.08	%	71,810	0.78	%
Other		25,646,633	14.63	%	2,032,702	22.04	%
Total	$	175,138,078	100.00	%	9,221,506	100.00	%

18

Washington Real Estate Investment Trust

Lease Expirations

December 31, 2006

Year	Number of Leases	Rentable Square Feet	Percent of Rentable Square Feet		Annualized Rent *		Average Rental Rate		Percent of Annualized Rent *
Office:
2007	84	314,849	9.92	%	$	8,677,593	$	27.56	10.10	%
2008	75	345,815	10.89	%		9,796,948		28.33	11.41	%
2009	107	551,889	17.38	%		14,951,056		27.09	17.41	%
2010	82	685,889	21.60	%		19,036,733		27.75	22.16	%
2011	77	369,536	11.64	%		10,375,060		28.08	12.08	%
2012 and thereafter	86	906,978	28.57	%		23,057,560		25.42	26.84	%
	511	3,174,956	100.00	%	$	85,894,950	$	27.05	100.00	%
Medical Office:
2007	25	75,744	8.78	%	$	2,002,678	$	26.44	7.69	%
2008	26	69,366	8.04	%		2,201,253		31.73	8.45	%
2009	24	72,463	8.40	%		2,123,101		29.30	8.15	%
2010	35	159,315	18.46	%		4,912,421		30.83	18.85	%
2011	40	180,978	20.97	%		5,561,695		30.73	21.34	%
2012 and thereafter	69	305,063	35.35	%		9,259,732		30.35	35.52	%
	219	862,929	100.00	%	$	26,060,880	$	30.20	100.00	%
Retail:
2007	57	185,358	10.05	%	$	3,670,484	$	19.80	12.09	%
2008	38	204,570	11.09	%		2,161,338		10.57	7.12	%
2009	42	148,280	8.04	%		3,175,466		21.42	10.46	%
2010	48	290,501	15.75	%		4,947,794		17.03	16.30	%
2011	25	151,618	8.22	%		2,649,357		17.47	8.73	%
2012 and thereafter	83	864,582	46.85	%		13,746,742		15.90	45.30	%
	293	1,844,909	100.00	%	$	30,351,181	$	16.45	100.00	%
Industrial:
2007	44	433,115	12.97	%	$	4,173,097	$	9.64	12.71	%
2008	62	754,427	22.60	%		7,207,692		9.55	21.95	%
2009	54	666,314	19.96	%		6,702,366		10.06	20.42	%
2010	32	257,059	7.70	%		2,832,633		11.02	8.63	%
2011	31	428,656	12.84	%		3,458,365		8.07	10.53	%
2012 and thereafter	37	799,141	23.93	%		8,456,914		10.58	25.76	%
	260	3,338,712	100.00	%	$	32,831,067	$	9.83	100.00	%
Total:
2007	210	1,009,066	10.94	%	$	18,523,852	$	18.36	10.58	%
2008	201	1,374,178	14.90	%		21,367,231		15.55	12.20	%
2009	227	1,438,946	15.60	%		26,951,989		18.73	15.39	%
2010	197	1,392,764	15.10	%		31,729,581		22.78	18.12	%
2011	173	1,130,788	12.26	%		22,044,477		19.49	12.59	%
2012 and thereafter	275	2,875,764	31.20	%		54,520,948		18.96	31.12	%
	1,283	9,221,506	100.00	%	$	175,138,078	$	18.99	100.00	%

^* Annualized Rent is as of December 31, 2006 rental revenue (cash basis) multiplied by 12.

19

Washington Real Estate Investment Trust

2006 Acquisition Summary

as of December 31, 2006

($’s in thousands)

Acquisition Summary
		Acquisition Date	Square Feet	Leased Percentage at Acquisition		December 31, 2006 Leased Percentage		Investment
Hampton Overlook	Capital Heights, MD	02/15/06	134,000	88	%	100	%	$	10,040
Hampton South	Capital Heights, MD	02/15/06	168,000	63	%	100	%		13,060
Alexandria Professional Ctr	Alexandria, VA	04/11/06	113,000	100	%	100	%		26,900
9707 Medical Center Drive	Rockville, MD	04/13/06	38,000	100	%	100	%		15,800
15001 Shady Grove Rd	Rockville, MD	04/29/06	51,000	100	%	100	%		21,000
Montrose Shopping Ctr	Rockville, MD	05/16/06	143,000	58	%	67	%		33,200
Randolph Shopping Ctr	Rockville, MD	05/16/06	82,000	91	%	93	%		17,100
9950 Business Parkway	Lanham, MD	05/26/06	102,000	79	%	79	%		11,700
Plumtree Medical Center	Bel Air, MD	06/22/06	33,000	100	%	100	%		7,700
15005 Shady Grove Road	Rockville, MD	07/12/06	52,000	100	%	100	%		22,500
6565 Arlington Blvd	Falls Church, VA	08/11/06	140,000	82	%	82	%		30,000
West Gude Drive	Rockville, MD	08/25/06	289,000	95	%	95	%		57,000
The Ridges	Gaithersburg, MD	08/25/06	104,000	100	%	100	%		25,000
The Crescent	Gaithersburg, MD	08/25/06	49,000	91	%	88	%		12,000
Total			1,498,000					$	303,000

20

Washington Real Estate Investment Trust

2006 Development Summary

as of December 31, 2006

($’s in thousands)

Property and Location	Total Rentable Square Feet or # of Units	Percentage Leased or Committed		Anticipated Total Cash Cost			Cash Cost to Date			Anticipated Construction Completion Date
Development
Bennett Park 1				$	76,600		$	44,718	3
Arlington, VA
(High Rise)	178 units, 1,600 sq ft. retail & 498 parking spaces underground (includes parking for existing office)	0	%							3Q 07
(Mid Rise)	46 units, 4,300 sq ft. retail	0	%							2Q 07
The Clayborne Apartments 2	75 units & 2,600 sq ft. retail	0	%	$	32,700		$	17,953	3	3Q 07
Alexandria, VA
Dulles Station4 Phase I	179,995 sq ft office	0	%	$	52,000	5	$	30,223	3	3Q 07
Herndon, VA Phase II	360,005 sq ft office				TBD		$	21,237	3	TBD
Total				$	161,300		$	114,131
Re-development
Foxchase Shopping Center 6	133,000 sq ft.	99	%	$	11,800		$	11,152		Complete
Alexandria, VA

¹ Bennett Park, formerly known as Rosslyn Towers, is a planned 224 unit multifamily property. 1620 Wilson Boulevard was acquired in conjunction with the overall development plan for Bennett Park.

² 718 E. Jefferson Street was acquired to complete our ownership of the entire block of 800 S. Washington Street. The surface parking lot on this block is in development. We currently refer to this development project as The Clayborne Apartments.

³ Includes land cost (Dulles Station Phase II land allocation $16.1M).

⁴ Dulles Station is 5.27 acres acquired in December, 2005.

⁵ Represents total costs associated with Phase I. We will concurrently build a portion of the structured garage, allocated to Phase II, which will cost an additional $7.2M.

⁶ Includes 60,600 square feet of redevelopment in connection with a lease executed in September 2004 with Harris Teeter.

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WRIT vs.

FTSE NAREIT Equity REITs, MSCI US REIT

& Russell 2000 Indices

12, 36, and 60 Month Total Returns

December 31, 2006

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Washington Real Estate Investment Trust

Reporting Definitions

December 31, 2006

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.

EBITDA (a non-GAAP measure) is earnings before interest, taxes, depreciation and amortization.

Ratio of earnings to fixed charges is computed by dividing earnings 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, including amortized costs of debt issuance, plus interest costs capitalized.

Debt service coverage ratio is computed by dividing earnings before interest income and expense, depreciation, amortization and gain on sale of real estate by interest expense 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 (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.

Funds Available for Distribution (FAD), a non-GAAP measure, is calculated by subtracting from FFO recurring expenditures, tenant improvements and leasing costs, that are capitalized and amortized and are necessary to maintain our properties and revenue stream and straight line rents, then adding non-real estate depreciation and amortization and adding or subtracting amortization of lease intangibles, 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.

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

Core portfolio net operating income (NOI) growth is the change in the NOI of the core portfolio properties from the prior reporting period to the current reporting period.

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