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) October 23, 2008

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 October 23, 2008, regarding earnings for the three and nine months ended September 30, 2008, 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 October 23, 2008 regarding earnings for the three and nine months ended September 30, 2008

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
	Executive Vice President Accounting,
	Administration and Corporate Secretary

October 23, 2008

        (Date)

Exhibit Index

Exhibit Number	Description
99.1	Press Release issued October 23, 2008 regarding earnings for the three and nine months ended September 30, 2008.
99.2	Certain supplemental information not included in the press release

EX-99.1

Exhibit 99.1

NEWS RELEASE

CONTACT: Sara Grootwassink Executive Vice President and Chief Financial Officer E-Mail: sgrootwassink@writ.com 6110 Executive Blvd., Suite 800 Rockville, Maryland 20852 Tel 301-984-9400 Fax 301-984-9610 www.writ.com

October 23, 2008

WASHINGTON REAL ESTATE INVESTMENT TRUST ANNOUNCES

THIRD QUARTER FINANCIAL AND OPERATING RESULTS

Washington Real Estate Investment Trust (WRIT) (NYSE: WRE) reported financial and operating results today for the quarter ended September 30, 2008:

• Funds from operations (FFO)⁽¹⁾ for the quarter were $27.4 million, or $0.55 per diluted share. This compares to FFO for the same period one year ago of $27.7 million, or $0.59 per diluted share.

• Net income for the quarter ended September 30, 2008 was $0.12 per diluted share, compared to $0.73 per diluted share in the same period one year ago. Net income in the third quarter 2007 included a $25.0 million, or $0.53 per diluted share, gain on disposed assets, related to the sale of Maryland Trade Centers I & II.

• Rent increases on commercial lease rollovers in third quarter 2008 were 20.9%. Residential rental rates increased 1.2% over the same period.

• In the third quarter, WRIT executed two major leases, totaling 154,000 square feet, with IBM and National Student Clearinghouse at its previously unleased Dulles Station West office development.

• During the third quarter and through October 1, 2008, WRIT has raised more than $100 million in equity and has fully repaid borrowings on its lines of credit. WRIT has no near-term maturities for the remainder of 2008 and its next maturity of $50 million comes due in the fourth quarter 2009.

Operating Results

Core net revenue growth was 2.0% compared to the same period last year and core occupancy was 93.8% during the third quarter of 2008. Core Net Operating Income (NOI)⁽²⁾ for third quarter decreased 0.2% compared to the same period last year.

• Medical office properties’ core NOI for the third quarter increased 2.4%. Core economic occupancy was 96.7% and core net revenue growth was 3.6% for the sector.

• Retail properties’ core NOI for the third quarter increased 1.4% compared to the same period one year ago. Core net revenue growth was 2.0% and core economic occupancy was 94.4% for the sector.

• Multifamily properties’ core NOI for the third quarter increased 1.2% compared to the same period one year ago. Core net revenue growth was 1.6% and core economic occupancy was 94.7% for the sector.

• Office properties’ core NOI for the third quarter decreased 0.1% compared to the same period one year ago. Core net revenue growth was 2.3% and core economic occupancy was 92.5% for the office sector.

• Industrial/Flex properties’ core NOI for the third quarter decreased 5.0% compared to the same period one year ago. Core net revenue growth was 0.1%, but was offset by an increase in bad debt expense. Core economic occupancy was 92.7% for the industrial/flex sector.

Washington Real Estate Investment Trust

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Leasing Activity

On September 29, 2008, WRIT announced it executed two leases totaling 154,000 square feet at Dulles Station West, Phase I. International Business Machines Corp. (NYSE: IBM) will occupy 123,000 square feet and National Student Clearinghouse will occupy 31,000 square feet, resulting in an 86% leased rate. Dulles Station West, Phase I is a 180,000 square foot, six-story office building prominently located on the Dulles Toll Road, less than one mile from Washington Dulles International Airport. Last year, the building received the Northern Virginia NAIOP’s Award of Excellence for Best Suburban Mid-Rise Office Building.

Excluding the leases above, WRIT signed commercial leases for a total of 458,000 square feet, with an average rental rate increase of 20.9% and tenant improvement costs of $9.41 per square foot during the third quarter. Residential rental rates increased 1.2% in the third quarter compared to the same period one year ago.

• Rental rates for new and renewed retail leases increased 32.0%, with $7.72 per square foot in tenant improvement costs.

• Rental rates for new and renewed industrial/flex leases increased 28.7%, with $1.20 per square foot in tenant improvement costs.

• Rental rates for new and renewed office leases increased 16.1%, with $21.72 per square foot in tenant improvement costs.

• Rental rates for new and renewed medical office leases increased 13.2%, with $13.51 per square foot in tenant improvement costs.

Acquisition and Disposition Activity

• On September 3, 2008, WRIT acquired The Kenmore, a 374-unit, 269,000 square foot apartment building located in Washington, DC for $58.3 million. The property was acquired for $155,750 per unit, less than half of estimated replacement cost. WRIT expects to achieve a first-year, unleveraged yield of 6.2% on a cash and GAAP basis. The acquisition was funded with borrowings on WRIT's line of credit and cash from operations.

Capital Structure & Maturities

WRIT has no near-term maturities for the remainder of 2008. In 2009, WRIT’s only debt maturity is a $50 million residential property mortgage, due October 2009. As of October 23, 2008, WRIT had repaid all outstanding balances on its lines of credit, providing a potential borrowing capacity totaling $337 million.

• On August 28, 2008, WRIT entered into a Sales Agency Financing Agreement with BNY Mellon Capital Markets, LLC. Under the agreement, WRIT may offer and sell up to $150 million of common shares for a period of no more than 36 months. As of September 30, 2008, WRIT had issued an aggregate of 1,141,410 shares at a weighted average share price of $36.15 for $41.2 million in gross proceeds pursuant to this arrangement.

• On September 30, 2008, WRIT paid a quarterly dividend of $0.4325 per share for its 187th consecutive quarterly dividend at equal or increasing rates.

• As of September 30, 2008, WRIT had a total capitalization of $3.2 billion.

• Subsequent to the quarter-end on October 1, 2008, WRIT closed a $60.4 million equity offering of 1.725 million common shares at a price of $35.00 per share. WRIT used the net proceeds from the offering to repay borrowings under its lines of credit and for general corporate purposes.

Washington Real Estate Investment Trust

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Earnings Guidance

Guidance for 2008 FFO per diluted share is lowered from a range of $2.11 to $2.21 to a range of $2.07 to $2.12. The decrease is primarily due to dilution associated with additional equity offerings and delay in the timing of planned acquisitions.

Other News and Events

On October 14, 2008, WRIT announced the appointment of William “Bill” T. Camp as Executive Vice President and Chief Financial Officer—Elect effective November 12, 2008. Mr. Camp will succeed Sara L. Grootwassink as EVP/CFO as she plans to resign due to a personal relocation to the West Coast. He brings 16 years of finance and capital markets experience to WRIT, serving most recently as Vice President, Assistant Director of Equities at Wachovia Securities, LLC.

Conference Call Information

The Conference Call for 3rd Quarter Earnings is scheduled for Friday, October 24, 2008 at 11:00 A.M. Eastern Daylight Time. Conference Call access information is as follows:

USA Toll Free Number:	1-877-407-9205
International Toll Number:	1-201-689-8054
Leader:	Sara Grootwassink

The instant replay of the Conference Call will be available until November 7, 2008 at 11:59 P.M. Eastern Standard Time. Instant replay access information is as follows:

USA Toll Free Number:	1-877-660-6853
International Toll Number:	1-201-612-7415
Account:	286
Conference ID:	295251

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 http://www.writ.com for two weeks following the Conference Call.

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About WRIT

WRIT is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington metro region. WRIT's dividends have increased every year for 38 consecutive years. WRIT owns a diversified portfolio of 92 properties consisting of 27 office properties, 22 industrial/flex properties, 17 medical office properties, 14 retail centers, 12 multifamily properties and land for development. WRIT shares are publicly traded on the New York Stock Exchange (NYSE: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 and cost 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 2007 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. FFO is a non-GAAP measure. A reconciliation of FFO to net income is provided on page 6.

⁽²⁾ For purposes of evaluating comparative operating performance, we categorize our properties as “core” or “non-core”. Core NOI is calculated as real estate rental revenue less real estate expenses for those properties owned for the entirety of the periods being evaluated. Core NOI is a non-GAAP measure. A reconciliation of Core NOI to net income is provided on pages 14 and 15 of the Supplemental Operating and Financial Data for the quarter ended September 30, 2008.

⁽³⁾ Funds Available for Distribution (“FAD”) is calculated by subtracting from FFO (1) recurring capital 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 (4) amortization of restricted share and unit compensation, and adding or subtracting (5) 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. A reconciliation of FAD to net income is provided on page 6.

Washington Real Estate Investment Trust

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Economic Occupancy Levels by Core Properties (i) and All Properties
	Core Properties				All Properties
Sector	3rd QTR 2008		3rd QTR 2007		3rd QTR 2008		3rd QTR 2007
Residential	94.7	%	93.4	%	85.6	%(ii)	91.5	%
Office	92.5	%	94.9	%	90.2	%	94.2	%
Medical Office	96.7	%	99.6	%	95.8	%	99.7	%
Retail	94.4	%	95.0	%	94.4	%	95.0	%
Industrial	92.7	%	95.4	%	92.9	%	94.8	%
Overall Portfolio	93.8	%	95.5	%	91.1	%	94.8	%

⁽ⁱ⁾ Core properties include all properties that were owned for the entirety of the current and prior year reporting periods. For Q3 2008 and Q3 2007, core properties exclude:

Residential Acquisition: The Kenmore

Office Acquisition: 2000 M Street

Medical Office Acquisitions: CentreMed I & II, and Sterling Medical Office Building

Retail Acquisitions: none

Industrial Acquisition: 6100 Columbia Pike Road

Also excluded from Core Properties in Q3 2008 and Q3 2007 are Sold Properties: Maryland Trade Centers I & II, Sullyfield Center and The Earhart Building; and Held for Sale Properites: Avondale; and In Development Properties: Bennett Park, Clayborne Apartments, Dulles Station, and 4661 Kenmore Ave.

⁽ⁱⁱ⁾ Residential occupancy for all properties decreased from 91.5% to 85.6%, primarily due to the completion of Bennett Park and Clayborne Apartments. At 9/30/08, 159 of 224 units were leased at Bennett Park and 41 of 74 units were leased at Clayborne Apartments.

Washington Real Estate Investment Trust

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WASHINGTON REAL ESTATE INVESTMENT TRUST

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
OPERATING RESULTS	2008			2007			2008			2007
Revenue
Real estate rental revenue	$	70,639		$	64,286		$	209,227		$	185,931
Expenses
Real estate expenses		24,031			20,021			69,101			57,526
Depreciation and amortization		21,422			17,852			62,799			50,310
General and administrative		2,780			3,174			8,971			11,424
		48,233			41,047			140,871			119,260
Real Estate Operating Income		22,406			23,239			68,356			66,671
Other income/(expense):
Interest expense		(17,148	)		(15,824	)		(52,395	)		(45,498	)
Loss on extinguishment of debt		—			—			(8,449	)		—
Other income		338			357			796			1,395
Gain from non-disposal activities		17			—			17			1,303
		(16,793	)		(15,467	)		(60,031	)		(42,800	)
Income from continuing operations		5,613			7,772			8,325			23,871
Discontinued operations:
Income from operations of properties held for sale		266			1,596			1,999			4,546
Gain on sale of real estate		—			25,022			15,275			25,022
Net Income	$	5,879		$	34,390		$	25,599		$	53,439
Income from continuing operations	$	5,613		$	7,772		$	8,325		$	23,871
Gain from non-disposal activities		(17	)		—			(17	)		(1,303	)
Continuing operations real estate depreciation and amortization		21,422			17,852			62,799			50,310
Funds from continuing operations	$	27,018		$	25,624		$	71,107		$	72,878
Income from discontinued operations before gain on sale		266			1,596			1,999			4,546
Discontinued operations real estate depreciation and amortization		123			433			469			1,630
Funds from discontinued operations		389			2,029			2,468			6,176
Funds from operations(1)	$	27,407		$	27,653		$	73,575		$	79,054
Tenant improvements		(1,452	)		(4,215	)		(8,591	)		(11,561	)
External and internal leasing commissions capitalized		(1,851	)		(1,159	)		(5,303	)		(4,392	)
Recurring capital improvements		(1,936	)		(2,635	)		(7,104	)		(7,997	)
Straight-line rents, net		(779	)		(988	)		(2,235	)		(3,247	)
Non real estate depreciation & amortization of debt costs		996			987			2,983			2,561
Amortization of lease intangibles, net		(533	)		(315	)		(1,576	)		(1,190	)
Amortization and expensing of restricted share and unit compensation		706			882			2,121			3,238
Other		—			102			—			1,303
Funds Available for Distribution (3)	$	22,558		$	20,312		$	53,870		$	57,769

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

Washington Real Estate Investment Trust

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		Three Months Ended September 30,				Nine Months Ended September 30,
Per Share Data		2008		2007		2008		2007
Income from continuing operations	(Basic)	$	0.11	$	0.17	$	0.17	$	0.52
	(Diluted)	$	0.11	$	0.17	$	0.17	$	0.52
Net income	(Basic)	$	0.12	$	0.74	$	0.53	$	1.17
	(Diluted)	$	0.12	$	0.73	$	0.53	$	1.16
Funds from continuing operations	(Basic)	$	0.54	$	0.55	$	1.48	$	1.60
	(Diluted)	$	0.54	$	0.55	$	1.47	$	1.59
Funds from operations	(Basic)	$	0.55	$	0.59	$	1.53	$	1.73
	(Diluted)	$	0.55	$	0.59	$	1.52	$	1.72
Dividends paid		$	0.4325	$	0.4225	$	1.2875	$	1.2575
Weighted average shares outstanding			49,599		46,596		48,057		45,678
Fully diluted weighted average shares outstanding			49,849		46,802		48,298		45,877

Washington Real Estate Investment Trust

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WASHINGTON REAL ESTATE INVESTMENT TRUST

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

	September 30, 2008			December 31, 2007
Assets
Land	$	368,371		$	325,490
Income producing property		1,751,057			1,621,679
		2,119,428			1,947,169
Accumulated depreciation and amortization		(382,261	)		(327,759	)
Net income producing property		1,737,167			1,619,410
Development in progress		23,469			98,321
Total real estate held for investment, net		1,760,636			1,717,731
Investment in real estate sold or held for sale		12,546			36,562
Cash and cash equivalents		7,813			21,485
Restricted cash		47,074			6,030
Rents and other receivables, net of allowance for doubtful accounts of $5,943 and $4,196		38,121			36,548
Prepaid expenses and other assets		104,291			78,394
Other assets related to property sold or held for sale		211			1,576
Total Assets	$	1,970,692		$	1,898,326
Liabilities
Notes payable	$	918,873		$	879,123
Mortgage notes payable		330,569			252,484
Lines of credit		47,000			192,500
Accounts payable and other liabilities		65,724			63,327
Advance rents		9,291			9,537
Tenant security deposits		10,209			10,419
Other liabilities related to property sold or held for sale		137			616
Total Liabilities		1,381,803			1,408,006
Minority interest		3,790			3,776
Shareholders' Equity
Shares of beneficial interest, $0.01 par value; 100,000 shares authorized; 50,661 and 46,682 shares issued and outstanding, respectively		508			468
Additional paid-in capital		696,885			561,492
Distributions in excess of net income		(112,570	)		(75,416	)
Accumulated other comprehensive income		276			—
Total Shareholders' Equity		585,099			486,544
Total Liabilities and Shareholders' Equity	$	1,970,692		$	1,898,326

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

EX-99.2

Exhibit 99.2

Third Quarter 2008

Supplemental Operating and Financial Data

for the Quarter Ended September 30, 2008

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

Company Background and Highlights

Third Quarter 2008

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

During third quarter 2008, WRIT focused on leasing its development projects and capitalizing on opportunities to recycle capital. In addition, WRIT continued to strengthen its balance sheet by issuing more than $100 million of equity, which it used to pay down all of its short-term variable rate debt, subsequent to quarter-end. Finally, WRIT paid its quarterly dividend for its 187th consecutive quarterly dividend at equal or increasing rates.

On September 3, 2008, WRIT acquired The Kenmore, a 374-unit, 269,000 square foot apartment building located in Washington, DC for $58.3 million. The property was acquired for $155,750 per unit, less than half of estimated replacement cost. With an excellent location, proximate to the intersection of Military Road and Connecticut Avenue in the affluent Upper Northwest submarket, WRIT expects steady rental rate growth and significant leasing demand. WRIT expects to achieve a first-year, unleveraged yield of 6.2% on a cash and GAAP basis. The acquisition was funded with borrowings on WRIT’s line of credit and cash from operations.

This quarter WRIT executed two leases totaling 154,000 square feet at Dulles Station West, Phase I. International Business Machines Corp. (NYSE: IBM) will occupy 123,000 square feet and National Student Clearinghouse will occupy 31,000 square feet, resulting in an 86% leased rate. Dulles Station West, Phase I is a 180,000 square foot, six-story office building prominently located on the Dulles Toll Road, less than one mile from Washington Dulles International Airport. Last year, the building received the Northern Virginia NAIOP’s Award of Excellence for Best Suburban Mid-Rise Office Building. The building is part of a mixed-use development which will include over one million square feet of office space, two hotels, 1,095 multifamily units and 56,000 square feet of retail and restaurant space.

Bennett Park is a ground-up development project in Arlington, VA consisting of high-rise and mid-rise Class A apartment buildings with a total of 224 units and 5,800 square feet of retail space, completed in fourth quarter 2007. The property was 71% leased at quarter-end 9/30/08.

The Clayborne is a ground-up development project in Alexandria, VA, adjacent to our 800 South Washington retail property, completed in first quarter 2008. The project consists of a 74-unit Class A apartment building that will include 2,700 square feet of additional retail space. The property was 55% leased at quarter-end 9/30/08.

On August 28, 2008, WRIT entered into a Sales Agency Financing Agreement with BNY Mellon Capital Markets, LLC. Under the agreement, WRIT may offer and sell up to $150 million of common shares for a period of no more than 36 months. As of September 30, 2008, WRIT had issued an aggregate of 1,141,410 shares for $41.2 million in gross proceeds through this agreement. Subsequent to the quarter-end on October 1, 2008, WRIT completed a $60.4 million equity offering of 1.725 million common shares at a price of $35.00 per share. WRIT used the net proceeds from both offerings to repay borrowings under its lines of credit and for general corporate purposes. On September 30, 2008, WRIT paid its quarterly dividend of $0.4325 per share for its 187th consecutive quarterly dividend at equal or increasing rates.

1

On October 14, 2008, WRIT announced the appointment of William “Bill” T. Camp as Executive Vice President and Chief Financial Officer - Elect effective November 12, 2008. Mr. Camp will succeed Sara L. Grootwassink as EVP/CFO as she plans to resign due to a personal relocation to the West Coast. He brings sixteen years of finance and capital markets experience to WRIT, serving most recently as Vice President, Assistant Director of Equities at Wachovia Securities, LLC.

WRIT is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington metro region. WRIT’s dividends have increased every year for 38 consecutive years. WRIT owns a diversified portfolio of 92 properties consisting of 27 office properties, 22 industrial/flex properties, 17 medical office properties, 14 retail centers, 12 multifamily properties and land for development. WRIT shares are publicly traded on the New York Stock Exchange (NYSE:WRE).

2

Net Operating Income Contribution by Sector - Third Quarter 2008

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

Third Quarter 2008 Acquisition and Purchase Agreement

Acquired:

The Kenmore

Washington, DC

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 2007 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

3

Supplemental Financial and Operating Data

Table of Contents

September 30, 2008

Schedule	Page
Key Financial Data
Consolidated Statements of Operations	5
Consolidated Balance Sheets	6
Funds From Operations and Funds Available for Distribution	7
Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)	8
Capital Analysis
Long-Term Debt Analysis	9-10
Capital Analysis	11
Portfolio Analysis
Core Portfolio Net Operating Income (NOI) Growth & Rental Rate Growth	12
Core Portfolio Net Operating Income (NOI) Summary	13
Core Portfolio Net Operating Income (NOI) Detail for the Quarter	14-15
Core Portfolio & Overall Economic Occupancy Levels by Sector	16
Tenant Analysis
Commercial Leasing Summary	17-18
10 Largest Tenants—Based on Annualized Base Rent	19
Industry Diversification	20
Lease Expirations as of September 30, 2008	21
Growth and Strategy
2008 Acquisition and Disposition Summary	22
Development Summary	23
Appendix
Schedule of Properties	24-25
Supplemental Definitions	26

Certain statements discussed in this Supplemental regarding anticipated operating results and future events are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although such statements and projections are based upon what we believe to be reasonable assumptions, actual results may differ from those projected. Key factors that could cause actual results to differ materially include changes in the economy, the successful and timely completion of acquisitions, changes in interest rates, leasing activities and other risks associated with the commercial real estate business and as detailed in our filings from time to time with the Securities and Exchange Commission.

Consolidated Statements of Operations

(In thousands, except per share data)

(unaudited)

	Three Months Ended
OPERATING RESULTS	09/30/08			06/30/08			03/31/08			12/31/07			09/30/07
Real estate rental revenue	$	70,639		$	68,992		$	69,596		$	66,801		$	64,286
Real estate expenses		(24,031	)		(22,341	)		(22,730	)		(20,898	)		(20,021	)
		46,608			46,651			46,866			45,903			44,265
Real estate depreciation and amortization		(21,422	)		(21,020	)		(20,357	)		(18,825	)		(17,852	)
Income from real estate		25,186			25,631			26,509			27,078			26,413
Other income		338			220			238			480			357
Gain from non-disposal activities		17			—			—			—			—
Loss on extinguishment of debt		—			—			(8,449	)		—			—
Interest expense		(17,148	)		(17,582	)		(17,664	)		(16,400	)		(15,824	)
General and administrative		(2,780	)		(3,111	)		(3,080	)		(3,675	)		(3,174	)
Income (loss) from continuing operations		5,613			5,158			(2,446	)		7,483			7,772
Discontinued operations:
Income from operations of properties held for sale		266			775			958			959			1,596
Gain on sale of real estate		—			15,275			—			—			25,022
Income from discontinued operations		266			16,050			958			959			26,618
Net Income (loss)	$	5,879		$	21,208		$	(1,488	)	$	8,442		$	34,390
Per Share Data
Net Income	$	0.12		$	0.44		$	(0.03	)	$	0.18		$	0.73
Fully diluted weighted average shares outstanding		49,849			48,148			46,623			46,822			46,802
Percentage of Revenues:
Real estate expenses		34.0	%		32.4	%		32.7	%		31.3	%		31.1	%
General and administrative		3.9	%		4.5	%		4.4	%		5.5	%		4.9	%
Ratios:
EBITDA / Interest expense		2.6	x		2.1	x		2.1	x (1)		2.7	x		2.7	x
Income from continuing operations/Total real estate revenue		7.9	%		7.5	%		-3.5	% (1)		11.2	%		12.1	%
Net income/Total real estate revenue		8.3	%		30.7	%		-2.1	% (1)		12.6	%		53.5	%

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

⁽¹⁾ Includes the impact of the loss on extinguishment of debt of $8.4 million in the first quarter of 2008

5

Consolidated Balance Sheets

(In thousands)

(unaudited)

	September 30, 2008			June 30, 2008			March 31, 2008			December 31, 2007			September 30, 2007
Assets
Land	$	368,371		$	334,221		$	333,250		$	325,490		$	331,024
Income producing property		1,751,057			1,679,649			1,660,770			1,621,679			1,483,585
		2,119,428			2,013,870			1,994,020			1,947,169			1,814,609
Accumulated depreciation and amortization		(382,261	)		(363,620	)		(345,523	)		(327,759	)		(311,385	)
Net income producing property		1,737,167			1,650,250			1,648,497			1,619,410			1,503,224
Development in progress, including land held for development		23,469			58,760			58,784			98,321			138,093
Total real estate held for investment, net		1,760,636			1,709,010			1,707,281			1,717,731			1,641,317
Investment in real estate held for sale, net		12,546			12,615			36,220			36,562			35,929
Cash and cash equivalents		7,813			12,721			12,856			21,485			9,916
Restricted cash		47,074			48,868			7,637			6,030			46,002
Rents and other receivables, net of allowance for doubtful accounts		38,121			37,082			38,989			36,548			34,469
Prepaid expenses and other assets		104,291			85,129			87,453			78,394			76,508
Other assets related to properties sold or held for sale		211			16			1,762			1,576			1,660
Total Assets	$	1,970,692		$	1,905,441		$	1,892,198		$	1,898,326		$	1,845,801
Liabilities and Shareholders’ Equity
Notes payable	$	918,873		$	918,834		$	918,783		$	879,123		$	879,094
Mortgage notes payable		330,569			331,575			251,539			252,484			253,500
Lines of credit/short-term note payable		47,000			15,000			174,500			192,500			128,500
Accounts payable and other liabilities		65,724			59,114			57,543			63,327			65,074
Advance rents		9,291			8,788			9,378			9,537			6,413
Tenant security deposits		10,209			10,365			10,389			10,419			9,893
Other liabilities related to properties sold or held for sale		137			155			542			616			591
Total Liabilities		1,381,803			1,343,831			1,422,674			1,408,006			1,343,065
Minority interest		3,790			3,791			3,786			3,776			5,593
Shareholders’ Equity
Shares of beneficial interest, $0.01 par value; 100,000 shares authorized		508			496			468			468			467
Additional paid-in capital		696,885			653,816			563,174			561,492			560,695
Distributions in excess of net income		(112,570	)		(96,873	)		(96,660	)		(75,416	)		(64,019	)
Accumulated other comprehensive income (loss)		276			380			(1,244	)		—			—
Total Shareholders’ Equity		585,099			557,819			465,738			486,544			497,143
Total Liabilities and Shareholders’ Equity	$	1,970,692		$	1,905,441		$	1,892,198		$	1,898,326		$	1,845,801
Total Debt / Total Market Capitalization		0.41:1			0.46:1			0.46:1			0.47:1			0.44:1

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

6

Funds From Operations and Funds Available for Distribution

(In thousands, except per share data)

(unaudited)

	Three Months Ended
	9/30/2008			6/30/2008			3/31/2008			12/31/2007			9/30/2007
Funds From Operations(1)
Net Income (loss)	$	5,879		$	21,208		$	(1,488	)	$	8,442		$	34,390
Real estate depreciation and amortization		21,422			21,020			20,357			18,825			17,852
Gain from non-disposal activities		(17	)		—			—			—			—
Discontinued operations:
Gain on sale of real estate		—			(15,275	)								(25,022	)
Real estate depreciation and amortization		123			178			168			260			433
Funds From Operations (FFO)	$	27,407		$	27,131		$	19,037		$	27,527		$	27,653
FFO per share—basic	$	0.55		$	0.57		$	0.41		$	0.59		$	0.59
FFO per share—fully diluted	$	0.55		$	0.56		$	0.41		$	0.59		$	0.59
FFO per share—fully diluted, excluding loss on extinguishment of debt	$	0.55		$	0.56		$	0.59		$	0.59		$	0.59
Funds Available for Distribution(2)
Tenant Improvements		(1,452	)		(5,029	)		(2,110	)		(5,026	)		(4,215	)
External and Internal Leasing Commissions Capitalized		(1,851	)		(1,429	)		(2,023	)		(1,613	)		(1,159	)
Recurring Capital Improvements		(1,936	)		(3,052	)		(2,116	)		(3,899	)		(2,635	)
Straight-Line Rent, Net		(779	)		(712	)		(744	)		(957	)		(988	)
Non-real estate depreciation and amortization		996			987			1,000			1,011			987
Amortization of lease intangibles, net		(533	)		(537	)		(506	)		(191	)		(315	)
Amortization and expensing of restricted share and unit compensation		706			716			699			850			882
Other					—			—			—			102
Funds Available for Distribution (FAD)	$	22,558		$	18,075		$	13,237		$	17,702		$	20,312
Total Dividends Paid	$	21,533		$	21,376		$	19,724		$	19,723		$	19,716
Average shares—basic		49,599			47,933			46,623			46,604			46,596
Average shares—fully diluted		49,849			48,148			46,623			46,822			46,802

⁽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.

7

Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)

(In thousands)

(unaudited)

	Three Months Ended
	09/30/08			06/30/08			03/31/08			12/31/07			09/30/07
EBITDA(1)
Net income (loss)	$	5,879		$	21,208		$	(1,488	)	$	8,442		$	34,390
Add:
Interest expense		17,148			17,582			17,664			16,400			15,824
Real estate depreciation and amortization		21,545			21,198			20,525			19,085			18,285
Non-real estate depreciation		299			285			276			277			261
Less:
Gain on sale of real estate		—			(15,275	)		—			—			(25,022	)
Gain from non-disposal activities		(17	)		—			—			—			—
Other income		(338	)		(220	)		(238	)		(480	)		(357	)
EBITDA	$	44,516		$	44,778		$	36,739		$	43,724		$	43,381

⁽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.

8

Long-Term Debt Analysis

(In thousands, except per share amounts)

	September 30, 2008			June 30, 2008			March 31, 2008			December 31, 2007			September 30, 2007
Balances Outstanding
Secured
Conventional fixed rate	$	330,569		$	331,575		$	251,539		$	252,484		$	253,500
Secured total		330,569			331,575			251,539			252,484			253,500
Unsecured
Fixed rate bonds and notes		918,873			918,834			918,783			879,123			879,094
Credit facility		47,000			15,000			174,500			192,500			128,500
Unsecured total		965,873			933,834			1,093,283			1,071,623			1,007,594
Total	$	1,296,442		$	1,265,409		$	1,344,822		$	1,324,107		$	1,261,094
Average Interest Rates
Secured
Conventional fixed rate		5.8	%		5.8	%		5.8	%		5.8	%		5.8	%
Secured total		5.8	%		5.8	%		5.8	%		5.8	%		5.8	%
Unsecured
Fixed rate bonds		5.0	%		5.0	%		5.0	%		5.2	%		5.2	%
Credit facilities		2.9	%		5.1	%		5.1	%		5.4	%		5.9	%
Unsecured total		4.9	%		5.0	%		5.0	%		5.2	%		5.3	%
Average		5.1	%		5.2	%		5.2	%		5.3	%		5.4	%

Note: The current balance outstanding of the fixed rate bonds and notes is shown net of discounts/premiums in the amount of $1,127,023.

9

Long-Term Debt Analysis

(In thousands, except per share amounts)

Continued from previous page

	Future Maturities of Debt
Year	Secured Debt		Unsecured Debt		Credit Facilities		Total Debt		Average Interest Rate
2008	$	1,113	$	—	$	—	$	1,113	5.4	%
2009		54,285		—		—		54,285	7.0	%
2010		25,973		100,000		47,000		172,973	4.2	%
2011		13,339		150,000		—		163,339	5.9	%
2012		21,088		50,000		—		71,088	5.0	%
2013		106,039		60,000		—		166,039	5.5	%
2014		884		100,000		—		100,884	5.3	%
2015		19,373		150,000		—		169,373	5.3	%
2016		81,582		—		—		81,582	5.7	%
Thereafter		6,893		310,000		—		316,893	4.5	%
Total maturities	$	330,569	$	920,000	$	47,000	$	1,297,569	5.1	%

Weighted average maturity = 7.7 years

10

Capital Analysis

(In thousands, except per share amounts)

	September 30, 2008			June 30, 2008			March 31, 2008			December 31, 2007			September 30, 2007
Market Data
Shares Outstanding		50,661			49,461			46,716			46,682			46,669
Market Price per Share	$	36.63		$	30.05		$	33.42		$	31.41		$	33.18
Equity Market Capitalization	$	1,855,712		$	1,486,303		$	1,561,249		$	1,466,282		$	1,548,477
Total Debt	$	1,296,442		$	1,265,409		$	1,344,822		$	1,324,107		$	1,261,094
Total Market Capitalization	$	3,152,154		$	2,751,712		$	2,906,071		$	2,790,389		$	2,809,571
Total Debt to Market Capitalization		0.41:1			0.46:1			0.46:1			0.47:1			0.44:1
Earnings to Fixed Charges(1)		1.3 x			1.3 x			0.8 x	(3)		1.3 x			1.3 x
Debt Service Coverage Ratio(2)		2.5 x			2.4 x			1.9 x	(3)		2.5 x			2.6 x
Dividend Data
Total Dividends Paid	$	21,533		$	21,376		$	19,724		$	19,723		$	19,716
Common Dividend per Share	$	0.4325		$	0.4325		$	0.4225		$	0.4225		$	0.4225
Payout Ratio (FFO per share basis)		78.6	%		77.2	%		103.0	%		71.6	%		71.6	%

⁽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 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.

⁽³⁾ Includes the impact of the loss on extinguishment of debt of $8.4 million and the write off of related note premium in the first quarter of 2008.

11

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

2008 vs. 2007

Cash Basis

	Third Quarter(1)
Sector	NOI Growth		Rental Rate Growth
Multifamily	1.2	%	1.3	%
Office Buildings	2.4	%	2.9	%
Medical Office Buildings	1.9	%	3.5	%
Retail Centers	-1.1	%	3.5	%
Industrial / Flex Properties	-4.8	%	3.0	%
Overall Core Portfolio	0.3	%	2.9	%

GAAP Basis

	Third Quarter(1)
Sector	NOI Growth		Rental Rate Growth
Multifamily	1.2	%	1.2	%
Office Buildings	-0.1	%	1.8	%
Medical Office Buildings	2.4	%	2.1	%
Retail Centers	1.4	%	4.1	%
Industrial / Flex Properties	-5.0	%	2.3	%
Overall Core Portfolio	-0.2	%	2.2	%

¹ Non-core properties were:

2007 and 2008 sold properties—Maryland Trade Centers I and II, Sullyfield Center and The Earhart Building.

2007 acquisitions—CentreMed I & II, 4661 Kenmore Ave (land for development) and 2000 M Street.

2008 acquisitions—6100 Columbia Park Road, Sterling Medical Office Building and The Kenmore Apartments.

2008 held for sale property—Avondale.

12

Core Portfolio Net Operating Income (NOI) Summary

(In thousands)

	Three Months Ended September 30,
	2008		2007		% Change
Cash Basis:
Multifamily	$	4,805	$	4,748	1.2	%
Office Buildings		16,991		16,592	2.4	%
Medical Office Buildings		6,741		6,613	1.9	%
Retail Centers		7,594		7,679	-1.1	%
Industrial/Flex		7,183		7,546	-4.8	%
	$	43,314	$	43,178	0.3	%
GAAP Basis:
Multifamily	$	4,809	$	4,754	1.2	%
Office Buildings		17,123		17,136	-0.1	%
Medical Office Buildings		7,071		6,907	2.4	%
Retail Centers		8,071		7,963	1.4	%
Industrial/Flex		7,246		7,628	-5.0	%
	$	44,320	$	44,388	-0.2	%

13

Core Portfolio Net Operating Income (NOI) Detail

(In thousands)

	Three Months Ended September 30, 2008
	Multifamily			Office			Medical Office			Retail			Industrial			Corporate and Other			Total
Real estate rental revenue
Core Portfolio	$	8,168		$	26,578		$	10,453		$	10,260		$	9,844		$	—		$	65,303
Non-core—acquired and in development 1		1,554			2,797			588			—			397			—			5,336
Total		9,722			29,375			11,041			10,260			10,241			—			70,639
Real estate expenses
Core Portfolio		3,359			9,455			3,382			2,189			2,598			—			20,983
Non-core—acquired and in development 1		1,045			1,614			235			—			154			—			3,048
Total		4,404			11,069			3,617			2,189			2,752			—			24,031
Net Operating Income (NOI)
Core Portfolio		4,809			17,123			7,071			8,071			7,246			—			44,320
Non-core—acquired and in development 1		509			1,183			353			—			243			—			2,288
Total	$	5,318		$	18,306		$	7,424		$	8,071		$	7,489		$	—		$	46,608
Core Portfolio NOI GAAP Basis (from above)	$	4,809		$	17,123		$	7,071		$	8,071		$	7,246		$	—		$	44,320
Straight-line revenue, net for core properties		(4	)		(7	)		(163	)		(392	)		(75	)		—			(641	)
FAS 141 Min Rent		—			(119	)		(167	)		(88	)		7			—			(367	)
Amortization of lease intangibles for core properties		—			(6	)		—			3			5			—			2
Core portfolio NOI, Cash Basis	$	4,805		$	16,991		$	6,741		$	7,594		$	7,183		$	—		$	43,314
Reconciliation of NOI to Net Income (loss)
Total NOI	$	5,318		$	18,306		$	7,424		$	8,071		$	7,489		$	—		$	46,608
Other income		—			—			—			—			—			338			338
Interest expense		(2,146	)		(854	)		(1,409	)		(336	)		(245	)		(12,158	)		(17,148	)
Depreciation and amortization		(2,996	)		(9,544	)		(3,644	)		(1,902	)		(3,149	)		(187	)		(21,422	)
General and administrative		—			—			—			—			—			(2,780	)		(2,780	)
Discontinued Operations2		266			—			—			—			—			—			266
Gain from non-disposal activities		—			—			—			—			—			17			17
Net Income (loss)	$	442		$	7,908		$	2,371		$	5,833		$	4,095		$	(14,770	)	$	5,879

1	Non-core acquired and in development properties:
	2007 in development—Bennett Park, Clayborne Apartments and Dulles Station.
	2007 acquisitions—CentreMed I & II, 4661 Kenmore Ave (land for development) and 2000 M Street.
	2008 acquisitions—6100 Columbia Park Road, Sterling Medical Office Building and Kenmore Apartments.
2	Discontinued operations include:	Sold Properties—Maryland Trade Center I and II, Sullyfield Center and The Earhart Building.
		Held for Sale Property—Avondale.

14

Core Portfolio Net Operating Income (NOI) Detail

(In thousands)

	Three Months Ended September 30, 2007
	Multifamily			Office			Medical Office			Retail			Industrial			Corporate and Other			Total
Real estate rental revenue
Core Portfolio	$	8,041		$	25,981		$	10,087		$	10,061		$	9,831		$	—		$	64,001
Non-core—acquired and in development 1		67			—			218			—			—			—			285
Total		8,108			25,981			10,305			10,061			9,831			—			64,286
Real estate expenses
Core Portfolio		3,287			8,845			3,180			2,098			2,203			—			19,613
Non-core—acquired and in development 1		212			138			58			—			—			—			408
Total		3,499			8,983			3,238			2,098			2,203			—			20,021
Net Operating Income (NOI)
Core Portfolio		4,754			17,136			6,907			7,963			7,628			—			44,388
Non-core—acquired and in development 1		(145	)		(138	)		160			—			—			—			(123	)
Total	$	4,609		$	16,998		$	7,067		$	7,963		$	7,628		$	—		$	44,265
Core Portfolio NOI GAAP Basis (from above)	$	4,754		$	17,136		$	6,907		$	7,963		$	7,628		$	—		$	44,388
Straight-line revenue, net for core properties		(7	)		(448	)		(149	)		(149	)		(140	)		—			(893	)
FAS 141 Min Rent		—			(103	)		(145	)		(138	)		52			—			(334	)
Amortization of lease intangibles for core properties		1			7			—			3			6			—			17
Core portfolio NOI, Cash Basis	$	4,748		$	16,592		$	6,613		$	7,679		$	7,546		$	—		$	43,178
Reconciliation of NOI to Net Income
Total NOI	$	4,609		$	16,998		$	7,067		$	7,963		$	7,628		$	—		$	44,265
Other income		—			—			—			—			—			357			357
Interest expense		(913	)		(870	)		(1,425	)		(344	)		(249	)		(12,023	)		(15,824	)
Depreciation and amortization		(1,733	)		(7,863	)		(3,384	)		(1,758	)		(2,980	)		(134	)		(17,852	)
General and administrative		—			—			—			—			—			(3,174	)		(3,174	)
Discontinued Operations2		194			870			—			—			532			—			1,596
Gain on sale of real estate		—			—			—			—			—			25,022			25,022
Net Income	$	2,157		$	9,135		$	2,258		$	5,861		$	4,931		$	10,048		$	34,390

1	Non-core acquired and in development properties were:
	2007 in development—Bennett Park, Clayborne Apartments and Dulles Station.
	2007 acquisitions—CentreMed I & II, 4661 Kenmore Ave (land for development) and 2000 M Street.
2	Discontinued operations include:	Sold Properties—Maryland Trade Center I and II, Sullyfield Center and The Earhart Building.
		Held for Sale Property—Avondale.

15

Core Portfolio & Overall Economic Occupancy Levels by Sector

Q3 2008 vs. Q3 2007

GAAP Basis
	Core Portfolio				All Properties
Sector	3rd QTR 2008		3rd QTR 2007		3rd QTR 2008		3rd QTR 2007
Multifamily	94.7	%	93.4	%	85.6	%	91.5	%
Office Buildings	92.5	%	94.9	%	90.2	%	94.2	%
Medical Office Buildings	96.7	%	99.6	%	95.8	%	99.7	%
Retail Centers	94.4	%	95.0	%	94.4	%	95.0	%
Industrial / Flex Properties	92.7	%	95.4	%	92.9	%	94.8	%
Overall Portfolio	93.8	%	95.5	%	91.1	%	94.8	%

16

Commercial Leasing Summary

Three and Nine months ended 9/30/08

	3rd Quarter 2008						Year-to-Date
Gross Leasing Square Footage
Office Buildings		121,711						439,825
Medical Office Buildings		61,293						121,734
Retail Centers		77,595						154,164
Industrial Centers		197,471						485,118
Total		458,070						1,200,841
Weighted Average Term (yrs)
Office Buildings		7.1						5.1
Medical Office Buildings		5.0						5.4
Retail Centers		7.6						7.0
Industrial Centers		3.2						3.9
Total		5.2						4.9
	GAAP			CASH			GAAP			CASH
Rental Rate Increases:
Rate on expiring leases
Office Buildings	$	28.73		$	29.96		$	28.20		$	29.33
Medical Office Buildings		30.11			30.69			30.07			31.46
Retail Centers		17.81			18.02			19.20			19.92
Industrial Centers		9.83			11.04			10.40			11.05
Total	$	18.92		$	19.88		$	20.04		$	20.95
Rate on new and renewal leases
Office Buildings	$	33.36		$	30.53		$	31.47		$	30.95
Medical Office Buildings		34.08			32.33			35.95			33.85
Retail Centers		23.51			22.74			24.82			23.35
Industrial Centers		12.65			12.28			12.18			11.62
Total	$	22.86		$	21.58		$	23.28		$	22.46
Percentage Increase
Office Buildings		16.12	%		1.88	%		11.61	%		5.54	%
Medical Office Buildings		13.19	%		5.35	%		19.56	%		7.60	%
Retail Centers		32.03	%		26.19	%		29.26	%		17.21	%
Industrial Centers		28.73	%		11.16	%		17.16	%		5.21	%
Total		20.86	%		8.55	%		16.15	%		7.21	%

Note: The information presented excludes leases executed during the quarter and year-to-date periods for Dulles Station.

17

Commercial Leasing Summary

Continued from previous page

Three and Nine months ended 9/30/08

	3rd Quarter 2008				Year-to-Date
	Total Dollars		Dollars per Square Foot		Total Dollars		Dollars per Square Foot
Tenant Improvements
Office Buildings	$	2,644,118	$	21.72	$	4,874,483	$	11.08
Medical Office Buildings		827,849		13.51		1,807,088		14.84
Retail Centers		599,385		7.72		614,885		3.99
Industrial Centers		237,760		1.20		720,435		1.49
Subtotal	$	4,309,112	$	9.41	$	8,016,891	$	6.68
	Total Dollars		Dollars per Square Foot		Total Dollars		Dollars per Square Foot
Leasing Costs
Office Buildings	$	1,127,618	$	9.26	$	2,971,944	$	6.76
Medical Office Buildings		356,321		5.81		813,661		6.68
Retail Centers		396,669		5.11		598,986		3.89
Industrial Centers		362,065		1.83		908,665		1.87
Subtotal	$	2,242,673	$	4.90	$	5,293,256	$	4.41
	Total Dollars		Dollars per Square Foot		Total Dollars		Dollars per Square Foot
Tenant Improvements and Leasing Costs
Office Buildings	$	3,771,736	$	30.99	$	7,846,427	$	17.84
Medical Office Buildings		1,184,170		19.32		2,620,749		21.53
Retail Centers		996,054		12.84		1,213,871		7.87
Industrial Centers		599,825		3.04		1,629,100		3.36
Total	$	6,551,785	$	14.30	$	13,310,147	$	11.08

Note: The information presented excludes leases executed during the quarter and year-to-date periods for Dulles Station.

18

10 Largest Tenants - Based on Annualized Rent

September 30, 2008

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	38	4.41	%	210,354	2.16	%
Sunrise Assisted Living, Inc.	1	60	2.56	%	184,202	1.89	%
General Services Administration	8	17	2.01	%	256,038	2.63	%
IBM Corporation	2	125	1.99	%	134,734	1.38	%
INOVA Health System Hospital	6	33	1.66	%	99,477	1.02	%
URS Corporation	1	63	1.38	%	97,208	1.00	%
Lafarge North America, Inc.	1	22	1.33	%	80,610	0.83	%
George Washington University	2	89	1.15	%	77,538	0.80	%
Science Applications Int’l Corporation	1	57	0.93	%	80,561	0.83	%
Sun Microsystems, Inc.	1	39	0.91	%	65,443	0.67	%
Total/Weighted Average		50	18.33	%	1,286,165	13.21	%

19

Industry Diversification

September 30, 2008

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	$	47,689,265	23.00	%	1,930,499	19.82	%
Ambulatory Health Care Services		39,340,324	18.97	%	1,327,315	13.63	%
Credit Intermediation and Related Activities		15,538,160	7.49	%	418,837	4.30	%
Executive, Legislative & Other General Government		8,270,504	3.99	%	428,794	4.40	%
Educational Services		6,527,088	3.15	%	246,128	2.53	%
Religious, Grantmaking, Civic, Professional		6,255,919	3.02	%	200,213	2.06	%
Nursing and Residential Care Facilities		5,890,480	2.84	%	214,534	2.20	%
Food Services and Drinking Places		5,694,072	2.75	%	223,439	2.29	%
Administrative and Support Services		5,372,981	2.59	%	365,708	3.75	%
Food and Beverage Stores		4,093,275	1.97	%	256,562	2.63	%
Furniture and Home Furnishing Stores		3,707,319	1.79	%	231,581	2.38	%
Miscellaneous Store Retailers		3,525,790	1.70	%	256,789	2.64	%
Merchant Wholesalers-Durable Goods		3,494,731	1.69	%	366,847	3.77	%
Specialty Trade Contractors		3,152,293	1.52	%	342,457	3.52	%
Nonmetallic Mineral Product Manufacturing		3,140,533	1.51	%	119,474	1.23	%
Broadcasting (except Internet)		3,038,730	1.47	%	87,939	0.90	%
Personal and Laundry Services		3,005,051	1.45	%	134,986	1.39	%
Health & Personal Care Services		2,325,078	1.12	%	79,701	0.82	%
Clothing & Clothing Accessories Stores		2,231,297	1.08	%	141,486	1.45	%
Real Estate		2,205,041	1.06	%	84,424	0.87	%
Merchant Wholesalers-Non Durable Goods		2,099,190	1.01	%	226,518	2.33	%
Amusement, Gambling and Recreation industries		1,974,258	0.95	%	142,780	1.47	%
Miscellaneous Manufacturing		1,845,498	0.89	%	184,857	1.90	%
Hospitals		1,810,354	0.87	%	59,118	0.61	%
Construction of Buildings		1,696,082	0.82	%	111,142	1.14	%
General Merchandise Stores		1,670,304	0.81	%	222,430	2.28	%
Sporting Goods/Books/Hobby/Music Stores		1,638,808	0.79	%	122,058	1.25	%
Insurance Carriers and Related Activities		1,575,753	0.76	%	71,383	0.73	%
Telecommunications		1,318,346	0.64	%	48,757	0.50	%
Other		17,221,768	8.31	%	1,094,935	11.24	%
Total	$	207,348,292	100.00	%	9,741,691	100.00	%

20

Lease Expirations

September 30, 2008

Year	Number of Leases	Rentable Square Feet	Percent of Rentable Square Feet		Annualized Rent *		Average Rental Rate		Percent of Annualized Rent *
Office:
2008	29	56,570	1.58	%	$	1,638,261	$	28.96	1.39	%
2009	132	419,341	11.70	%		12,102,562		28.86	10.29	%
2010	129	786,891	21.96	%		25,573,836		32.50	21.75	%
2011	108	546,149	15.24	%		18,152,539		33.24	15.44	%
2012	69	320,496	8.94	%		9,940,824		31.02	8.45	%
2013 and thereafter	161	1,454,216	40.58	%		50,174,881		34.50	42.68	%
	628	3,583,663	100.00	%	$	117,582,903	$	32.81	100.00	%
Medical Office:
2008	8	10,730	0.91	%	$	369,116	$	34.40	0.87	%
2009	48	117,482	9.95	%		3,674,991		31.28	8.63	%
2010	55	185,224	15.69	%		6,305,008		34.04	14.80	%
2011	65	200,735	17.01	%		6,932,694		34.54	16.27	%
2012	43	141,375	11.98	%		5,284,034		37.38	12.40	%
2013 and thereafter	139	524,868	44.46	%		20,035,273		38.17	47.03	%
	358	1,180,414	100.00	%	$	42,601,116	$	36.09	100.00	%
Retail:
2008	3	97,872	5.22	%	$	301,216	$	3.08	0.81	%
2009	53	162,052	8.64	%		3,509,978		21.66	9.58	%
2010	52	306,471	16.35	%		5,556,141		18.13	15.16	%
2011	36	161,524	8.62	%		3,081,747		19.08	8.41	%
2012	38	140,319	7.49	%		3,187,004		22.71	8.70	%
2013 and thereafter	116	1,006,313	53.68	%		21,016,547		20.88	57.34	%
	298	1,874,551	100.00	%	$	36,652,633	$	19.55	100.00	%
Industrial:
2008	16	129,209	4.04	%	$	1,363,772	$	10.55	3.73	%
2009	51	470,214	14.69	%		4,444,451		9.45	12.15	%
2010	58	396,691	12.39	%		4,783,320		12.06	13.08	%
2011	62	555,900	17.37	%		5,308,576		9.55	14.51	%
2012	29	424,661	13.27	%		5,027,686		11.84	13.74	%
2013 and thereafter	65	1,224,585	38.24	%		15,652,062		12.78	42.79	%
	281	3,201,260	100.00	%	$	36,579,867	$	11.43	100.00	%
Total:
2008	56	294,381	2.99	%	$	3,672,365	$	12.47	1.57	%
2009	284	1,169,089	11.88	%		23,731,982		20.30	10.17	%
2010	294	1,675,277	17.03	%		42,218,305		25.20	18.09	%
2011	271	1,464,308	14.88	%		33,475,556		22.86	14.34	%
2012	179	1,026,851	10.44	%		23,439,548		20.30	10.04	%
2013 and thereafter	481	4,209,982	42.78	%		106,878,763		25.39	45.79	%
	1,565	9,839,888	100.00	%	$	233,416,519	$	23.72	100.00	%

* Annualized Rent is equal to the last rental rate in effect when the lease expires multiplied by 12.

21

2008 Acquisition and Disposition Summary

as of September 30, 2008

($’s in thousands)

Acquisition Summary
		Acquisition Date	Square Feet	Leased Percentage at Acquisition		September 30, 2008 Leased Percentage			Investment
6100 Columbia Park Road	Landover, MD	February 22, 2008	150,000	78	%		100	%	$	11,200
Sterling Medical Office Building 1	Sterling, VA	May 21, 2008	36,000	100	%		100	%	$	6,500
Kenmore Apartments (374 units)	Washington, DC	September 3, 2008	269,000	96	%		96	%	$	58,300
		Total	455,000						$	76,000
Disposition Summary
		Disposition Date	Property Type	Square Feet		Sale Price			GAAP Gain
Sullyfield Center/The Earhart Building	Chantilly, VA	June 6, 2008	Industrial	336,000		$	41,100		$	15,300

⁽¹⁾ The sellers of Sterling Medical Office Building agreed to lease 37% of the building’s space for a period of 12 - 18 months.

22

2008 Development Summary

as of September 30, 2008

($'s in thousands)

Property	Location	Total SF	Est. Total Investment			Investment to Date			Placed Into Service			Date Placed Into Service		Balance Sheet: Development In Progress		Percentage Leased
Value-Creation Pipeline
Dulles Station Phase II	Herndon, VA	360,000		n/a		$	25,477	(1)	$	8,009	(1)	3Q07(1)		$	17,468	n/a
Kenmore Avenue	Alexandria, VA	tbd		n/a			4,539			—		n/a			4,539	n/a
Other	Various	n/a		n/a			1,218			—		n/a			1,218	n/a
						$	31,234		$	8,009				$	23,225
Projects Placed in Service During 2007 and 2008
Dulles Station Phase I	Herndon, VA	180,000	$	60,575		$	44,538		$	44,501		3Q07/3Q08	(2)	$	37	86%
Bennett Park Apartments	Arlington, VA	268,000		86,900	(3)		86,039	(3)		85,852	(3)	4Q07			187	71%
Clayborne Apartments	Alexandria, VA	87,000		36,525	(4)		36,502	(4)		36,482	(4)	1Q08			20	55%
			$	184,000		$	167,079		$	166,835				$	244

⁽¹⁾ Represents allocation of completed garage at Dulles Station to Phase II.

⁽²⁾ The Dulles Station garage was placed into service in 3Q07, and the building was placed into service in 3Q08.

⁽³⁾ Includes shared garage investment at 1600 Wilson Boulevard of $4,625.

⁽⁴⁾ Includes shared garage and retail space investment at South Washington Street of $6,240.

23

Schedule of Properties

September 30, 2008

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
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
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 Boulevard	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
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
Subtotal				3,754,000
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
Subtotal				1,222,000
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 Foxchase1	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
Subtotal				2,022,000

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

24

Schedule of Properties (Cont.)

September 30, 2008

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 / 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 / 253	McLean, VA	1996	1982	252,000
Walker House Apartments / 212	Gaithersburg, MD	1996	1971/20032	159,000
Bethesda Hill Apartments / 195	Bethesda, MD	1997	1986	226,000
Avondale / 237	Laurel, MD	1999	1987	170,000
Bennett Park / 224	Arlington, VA	2007	2007	268,000
Clayborne / 74	Alexandria, VA	2008	2008	87,000
Kenmore Apartments / 374	Washington, DC	2008	1948	269,000
Subtotal (2,773 units)				2,375,000
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
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
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				3,595,000
TOTAL				12,968,000

* 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.

25

Supplemental Definitions

September 30, 2008

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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