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) April 27, 2009

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 April 27, 2009, regarding earnings for the three months ended March 31, 2009, 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 April 27, 2009 regarding earnings for the three months ended March 31, 2009

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

April 27, 2009

      (Date)

Exhibit Index

Exhibit Number	Description
99.1	Press Release issued April 27, 2009 regarding earnings for the three months ended March 31, 2009.
99.2	Certain supplemental information not included in the press release

EX-99.1

Exhibit 99.1

NEWS RELEASE

CONTACT: William T. Camp Executive Vice President and	6110 Executive Blvd., Suite 800 Rockville, Maryland 20852 Tel 301-984-9400
Chief Financial Officer	Fax 301-984-9610
E-Mail: bcamp@writ.com	www.writ.com
	April 27, 2009

WASHINGTON REAL ESTATE INVESTMENT TRUST ANNOUNCES

FIRST QUARTER FINANCIAL AND OPERATING RESULTS

Washington Real Estate Investment Trust (WRIT) (NYSE: WRE) reported financial and operating results today for the quarter ending March 31, 2009:

• Net income was $0.20 per diluted share compared to $(0.06) per diluted share in the same period one year ago. Included in the first quarter 2009 and first quarter 2008 net income are respective charges of $0.05 and $0.03 per diluted share from the adoption of an accounting pronouncement impacting the accounting of our 3.875% convertible notes⁽¹⁾. Also included in the first quarter 2009 net income is a gain of $0.11 per diluted share related to the repurchase of convertible debt. Also included in the first quarter 2008 net income is a $0.18 per diluted share non-recurring charge for the extinguishment of $60 million of 10-year Mandatory Par Put Remarketed Securities (“MOPPRS”).

• Funds From Operations (FFO)⁽³⁾ was $0.65 per diluted share compared to $0.38 per diluted share in the same period one year ago. Included in the first quarter 2009 and first quarter 2008 FFO are respective charges of $0.05 and $0.03 per diluted share from the adoption of an accounting pronouncement impacting the accounting of our 3.875% convertible notes⁽¹⁾ . Also included in the first quarter 2009 FFO is a gain of $0.11 per diluted share related to the repurchase of convertible debt. Also included in the first quarter 2008 FFO is a $0.18 per diluted share non-recurring charge for the extinguishment of $60 million of 10-year Mandatory Par Put Remarketed Securities (“MOPPRS”).

• Guidance for 2009 FFO per diluted share remains unchanged.

Capital Structure

Throughout the first quarter, WRIT repurchased a total of $48.6 million of its 3.875% convertible notes. WRIT repurchased the notes at discount prices ranging from 80% to 84% of par for approximately $40 million. In conjunction with these repurchases, WRIT reported a gain of approximately $5.8 million in the first quarter of 2009. In addition, WRIT issued 558,268 shares through its Sales Agency Financing Agreement with BNY Mellon Capital Markets, LLC. The average share price was $26.47 for gross proceeds of $14.8 million. Also this quarter, WRIT entered into a 10-year, $37.5 million mortgage on The Kenmore at a fixed rate of 5.37%.

On March 31, 2009, WRIT paid a quarterly dividend of $0.4325 per share for its 189^th consecutive quarterly dividend at equal or increasing rates.

As of March 31, 2009 WRIT had a total capitalization of $2.3 billion.

Washington Real Estate Investment Trust

Page 2 of 8

Operating Results

Overall portfolio economic occupancy for the first quarter was 92.3%, compared to 93.0% in the same period one year ago and 92.6% in the fourth quarter of 2008. Overall portfolio Net Operating Income (NOI) ⁽⁵⁾ was $50.5 million compared to $46.7 million in the same period one year ago and $47.4 million in the fourth quarter of 2008.

Core ⁽⁶⁾ portfolio NOI for the first quarter decreased 4.3% and rental rate growth was 2.5% compared to the same period one year ago. Core economic occupancy was 93.1% during the first quarter of 2009, a decrease of 230 basis points (bps) from the same period one year ago and a decrease of 60 bps sequentially from the fourth quarter of 2008.

• Multifamily properties’ core NOI for the first quarter increased 3.1% compared to the same period one year ago. Rental rate growth was 2.2% while core economic occupancy decreased 120 bps to 91.6%. Sequentially, core economic occupancy decreased from 92.8% in the fourth quarter of 2008.

• Medical office properties’ core NOI for the first quarter increased 3.6% compared to the same period one year ago. Rental rate growth was 2.5% while core economic occupancy decreased 80 bps to 97.1%. Sequentially, core economic occupancy increased from 95.2% in the fourth quarter of 2008.

• Office properties’ core NOI for the first quarter decreased 6.1% compared to the same period one year ago, primarily due to increased bad debt expense. Rental rate growth was 2.9% while core economic occupancy decreased 330 bps to 92.2%, primarily due to occupancy reduction at the One Central Plaza office building. Sequentially, core economic occupancy declined from 93.2% in the fourth quarter of 2008.

• Retail properties’ core NOI for the first quarter decreased 8.0% compared to the same period one year ago, primarily due to increased bad debt expense and higher operating expenses throughout the portfolio. Rental rate growth was 3.0% while core economic occupancy decreased 10 bps to 95.2%. Sequentially, core economic occupancy increased from 94.8% in the fourth quarter of 2008.

• Industrial properties’ core NOI for the first quarter decreased 7.8% compared to the same period one year ago, primarily due to lower occupancy at Northern Virginia Industrial Park and higher operating expenses throughout the portfolio. Rental rate growth was 1.0% while core economic occupancy decreased 440 bps to 90.3%. Sequentially, core economic occupancy declined from 92.4% in the fourth quarter of 2008.

Leasing Activity

During the first quarter, WRIT signed commercial leases for 235,000 square feet with an average rental rate increase of 11.1% over expiring lease rates, an average lease term of 3.6 years, tenant improvement costs of $4.81 per square foot and leasing costs of $4.07 per square foot.

• Rental rates for new and renewed medical office leases increased 9.8% to $35.08 per square foot, with $8.12 per square foot in tenant improvement costs and $2.05 per square foot in leasing costs.

• Rental rates for new and renewed office leases increased 13.4% to $31.84 per square foot, with $16.03 per square foot in tenant improvement costs and $12.36 per square foot in leasing costs.

• Rental rates for new and renewed retail leases decreased 5.2% to $17.52 per square foot, with $0.26 per square foot in tenant improvement costs and $3.48 per square foot in leasing costs.

• Rental rates for new and renewed industrial/flex leases increased 13.4% to $9.82 per square foot, with $0.17 per square foot in tenant improvement costs and $0.57 per square foot in leasing costs.

Residential rental rates increased 2.2% in the first quarter compared to the same period one year ago.

Washington Real Estate Investment Trust

Page 3 of 8

Conference Call Information

The Conference Call for 1^st Quarter Earnings is scheduled for Tuesday, April 28, 2009 at 11:00 A.M. Eastern Time. Conference Call access information is as follows:

USA Toll Free Number:	1-877-407-9205
International Toll Number:	1-201-689-8054
Leader:	William T. Camp

The instant replay of the Conference Call will be available until May 12, 2009 at 11:59 P.M. Eastern 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:	316913

The live on-demand webcast of the Conference Call will be available on the Investor section of 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.

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 owns a diversified portfolio of 93 properties consisting of 28 office properties, 22 industrial/flex properties, 17 medical office properties, 14 retail centers, 12 multi-family 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 are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to, the effect of the current credit and financial market conditions, the availability and cost of capital, fluctuations in interest rates, tenants’ financial conditions, the timing and pricing of lease transactions, levels of competition, the effect of government regulation, the impact of newly adopted accounting principles, 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 2008 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

⁽¹⁾ (1) Financial Accounting Standards Board Staff Position APB14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) (“FSP 14-1”), requires the bifurcation of a component of our 3.875% convertible notes, classification of that component in shareholders’ equity, and accretion of the resulting discount on the convertible notes to interest expense. As a result of the adoption of FSP 14-1, equity increased by $21.0 million as of March 31, 2009 and December 31, 2008. The principal balance of our 3.875% convertible notes was reduced by $8.7 million and $11.9 million as of March 31, 2009 and December 31, 2008, respectively, and the unamortized balance of the related loan origination costs was reduced by $2.2 million and 2.7 million, respectively. The decline in principal reflects the unamortized discount balance related to the adoption of FSP 14-1. Interest expense increased $1.2 million in the first quarters of both 2009 and 2008 as a result of the adoption. The gain on extinguishment of debt decreased by $1.5 million for the first quarter of 2009 as a result of the adoption.

⁽²⁾ As of the first quarter of 2009, we adopted SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements (“FAS 160”), under which noncontrolling interests of consolidated partnerships (previously referred to as “minority interests”) are reported as a component of equity. Under FAS 160, net income encompasses the total income of all consolidated subsidiaries and there is a separate disclosure on the face of the consolidated statement of income of the attribution of that income between controlling and noncontrolling interests. The implementation of this standard had no effect on our basic or diluted earnings per share calculation.

⁽³⁾ 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 and does not replace net income as a measure of performance or net cash provided by operating activities as a measure of liquidity. 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.

⁽⁴⁾ Funds Available for Distribution (“FAD”) is a non-GAAP measure. It 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. We consider FAD 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-standardized measure and may be calculated differently by other REITs.

Washington Real Estate Investment Trust

Page 4 of 8

⁽⁵⁾ Net Operating Income (“NOI”), defined as real estate rental revenue less real estate expenses, is a non-GAAP measure. We provide NOI as a supplement to net income calculated in accordance with GAAP. As such, it should not be considered an alternative to net income as an indication of our operating performance. It is the primary performance measure we use to assess the results of our operations at the property level. NOI is calculated as net income, less non-real estate revenue and the results of discontinued operations (including the gain on sale, if any), plus interest expense, depreciation and amortization and general and administrative expenses.

⁽⁶⁾ For purposes of evaluating comparative operating performance, we categorize our properties as “core” or “non-core”. A core property is one that was owned for the entirety of the periods being evaluated. A non-core property is one that was acquired or placed into service during either of the periods being evaluated.

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

	Core Properties				All Properties
	1st QTR		1st QTR		1st QTR		1st QTR
Sector	2009		2008		2009		2008
Residential	91.6	%	92.8	%	87.4	% (ii)	79.6	%
Office	92.2	%	95.5	%	92.6	%	95.5	%
Medical Office	97.1	%	97.9	%	96.5	%	97.9	%
Retail	95.2	%	95.3	%	95.2	%	95.3	%
Industrial	90.3	%	94.7	%	90.4	%	93.8	%
Overall Portfolio	93.1	%	95.4	%	92.3	%	93.0	%

⁽ⁱ⁾ Core properties include all properties that were owned for the entirety of the current and prior year reporting periods. For Q1 2009 and Q1 2008, core properties exclude:

Residential Acquisition: Kenmore Apartments

Office Acquisition: 2445 M Street

Medical Office Acquisition: Sterling Medical Office Building

Retail Acquisitions: none

Industrial Acquisition: 6100 Columbia Park Road

Also excluded from Core Properties in Q1 2009 and Q1 2008 are Sold Properties: Sullyfield Center and The Earhart Building; Held for Sale Properties: Avondale Apartments and Charleston Business Center; and In Development Properties: Bennett Park, Clayborne Apartments, and Dulles Station.

⁽ⁱⁱ⁾ Residential occupancy for all properties reflects the completion of Bennett Park and Clayborne Apartments. At 3/31/09, 174 of 224 units were occupied at Bennett Park and 60 of 74 units were occupied at Clayborne Apartments.

Washington Real Estate Investment Trust

Page 5 of 8

WASHINGTON REAL ESTATE INVESTMENT TRUST

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended March 31,
OPERATING RESULTS	2009			2008
Revenue
Real estate rental revenue	$	77,860		$	69,346
Expenses
Real estate expenses		27,404			22,678
Depreciation and amortization		23,275			20,333
General and administrative		3,182			3,023
		53,861			46,034
Real estate operating income		23,999			23,312
Other income/(expense):
Interest expense(1)		(19,681	)		(18,900	)
Gain (loss) on extinguishment of debt		5,845			(8,449	)
Other income		320			238
		(13,516	)		(27,111	)
Income from continuing operations		10,483			(3,799	)
Discontinued operations:
Income from operations of properties held for sale		417			1,132
Net income		10,900			(2,667	)
Less: Net income attributable to noncontrolling interests(2)		(49	)		(57	)
Net income attributable to the controlling interests(2)	$	10,851		$	(2,724	)
Income from continuing operations attributable to the controlling interests	$	10,434		$	(3,856	)
Continuing operations real estate depreciation and amortization		23,275			20,333
Funds from continuing operations	$	33,709		$	16,477
Income from discontinued operations before gain on sale		417			1,132
Discontinued operations real estate depreciation and amortization		27			192
Funds from discontinued operations		444			1,324
Funds from operations(2)	$	34,153		$	17,801
Gain on extinguishment of debt		(5,845	)		—
Tenant improvements		(1,066	)		(2,110	)
External and internal leasing commissions capitalized		(1,058	)		(2,023	)
Recurring capital improvements		(1,174	)		(2,116	)
Straight-line rents, net		(664	)		(744	)
Non-cash fair value interest expense		1,128			1,047
Non real estate depreciation & amortization of debt costs		1,219			1,263
Amortization of lease intangibles, net		(597	)		(506	)
Amortization and expensing of restricted share and unit compensation		577			699
Other		—			—
Funds available for distribution(3)	$	26,673		$	13,311

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

Washington Real Estate Investment Trust

Page 6 of 8

		Three Months Ended March 31,
Per share data attributable to the controlling interests:		2009		2008
Income from continuing operations	(Basic)	$	0.197	$	(0.083	)
	(Diluted)	$	0.197	$	(0.083	)
Net income	(Basic)	$	0.203	$	(0.058	)
	(Diluted)	$	0.203	$	(0.058	)
Funds from continuing operations	(Basic)	$	0.637	$	0.353
	(Diluted)	$	0.637	$	0.353
Funds from operations	(Basic)	$	0.645	$	0.382
	(Diluted)	$	0.645	$	0.382
Dividends paid		$	0.4325	$	0.4225
Weighted average shares outstanding			52,914		46,623
Fully diluted weighted average shares outstanding			52,915		46,623

Washington Real Estate Investment Trust

Page 7 of 8

WASHINGTON REAL ESTATE INVESTMENT TRUST

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

	March 31, 2009			December 31, 2008
Assets
Land	$	414,531		$	414,531
Income producing property		1,870,493			1,866,221
		2,285,024			2,280,752
Accumulated depreciation and amortization		(420,279	)		(400,487	)
Net income producing property		1,864,745			1,880,265
Development in progress		23,678			23,732
Total real estate held for investment, net		1,888,423			1,903,997
Investment in real estate sold or held for sale		16,401			16,408
Cash and cash equivalents		9,685			11,874
Restricted cash		19,343			18,823
Rents and other receivables, net of allowance for doubtful accounts of $7,489 and $6,278		47,411			45,244
Prepaid expenses and other assets(1)		105,615			112,599
Other assets related to property sold or held for sale		295			462
Total assets	$	2,087,173		$	2,109,407
Liabilities
Notes payable	$	845,364		$	890,679
Mortgage notes payable		458,084			421,286
Lines of credit(1)		48,000			67,000
Accounts payable and other liabilities		71,587			70,569
Advance rents		9,100			9,001
Tenant security deposits		10,199			10,237
Other liabilities related to property sold or held for sale		207			210
Total liabilities		1,442,541			1,468,982
Shareholders’ equity
Shares of beneficial interest, $0.01 par value; 100,000 shares authorized; 53,000 and 52,434 shares issued and outstanding, respectively		531			526
Additional paid-in capital(1)		793,441			777,375
Distributions in excess of net income		(151,172	)		(138,936	)
Accumulated other comprehensive income		(1,963	)		(2,335	)
Total shareholders’ equity		640,837			636,630
Noncontrolling interests in subsidiaries(2)		3,795			3,795
Total equity		644,632			640,425
Total liabilities and equity	$	2,087,173		$	2,109,407

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

Washington Real Estate Investment Trust

Page 8 of 8

The following tables contain reconciliations of net income to core net operating income for the periods presented:

Three months ended March 31, 2009	Multifamily			Office			Medical Office		Retail		Industrial		Total
Core net operating income(6)	$	4,659		$	18,119		$	7,485	$	7,706	$	6,949	$	44,918
Add: Net operating income from non-core properties(6)		1,621			3,571			68		—		278		5,538
Total net operating income(5)	$	6,280		$	21,690		$	7,553	$	7,706	$	7,227	$	50,456
Add/(deduct):
Other income														320
Interest expense														(19,681	)
Gain (loss) on extinguishment of debt														5,845
Depreciation and amortization expense														(23,275	)
General and administrative expenses														(3,182	)
Income from operations of properties held for sale														417
Net income													$	10,900
Less: Net income attributable to the noncontrolling interests														(49	)
Net income attributable to the controlling interests													$	10,851
Three months ended March 31, 2008	Multifamily			Office			Medical Office		Retail		Industrial		Total
Core net operating income(6)	$	4,519		$	19,305		$	7,224	$	8,374	$	7,536	$	46,958
Add: Net operating income from non-core properties(6)		(228	)		(149	)		—		—		87		(290	)
Total net operating income(5)	$	4,291		$	19,156		$	7,224	$	8,374	$	7,623	$	46,668
Add/(deduct):
Other income														238
Interest expense														(18,900	)
Gain (loss) on extinguishment of debt														(8,449	)
Depreciation and amortization expense														(20,333	)
General and administrative expenses														(3,023	)
Income from operations of properties held for sale														1,132
Net income													$	(2,667	)
Less: Net income attributable to the noncontrolling interests														(57	)
Net income attributable to the controlling interests													$	(2,724	)

EX-99.2

Exhibit 99.2

First Quarter 2009

Supplemental Operating and Financial Data

for the Quarter Ended March 31, 2009

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

Company Background and Highlights

First Quarter 2009

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

This quarter, WRIT repurchased convertible notes, entered into a 10-year mortgage on The Kenmore, issued equity through its SAFE Agreement with BNY Mellon Capital Markets, LLC, paid down a portion of its line balance and announced its 189th consecutive quarterly dividend at equal or increasing rates. WRIT repurchased a total of $48.6 million of its 3.875% convertible notes at discount prices ranging from 80-84% of par for approximately $40 million. In conjunction with these repurchases, WRIT reported a gain of approximately $5.8 million, or $0.11 per diluted share. In addition, WRIT issued an aggregate of 558,268 shares at an average price of $26.47 per share for gross proceeds of $14.8 million. Also this quarter, WRIT entered into a 10-year, $37.5 million mortgage on The Kenmore at a fixed rate of 5.37%. WRIT used the proceeds to pay down its line balance and for general corporate purposes.

In the first quarter, WRIT executed 235,000 square feet of commercial lease transactions with an average lease term of 3.6 years. The average rental rate increase on new and renewal leases in the commercial portfolio was 11.1% on a GAAP basis and -1.4% on a cash basis, and commercial tenant improvements averaged $4.81 per square foot for the quarter. Residential rental rates increased 2.2%.

As of March 31, 2009, WRIT owned a diversified portfolio of 93 properties consisting of 28 office properties, 22 industrial/flex properties, 17 medical office properties, 14 retail centers, 12 multifamily properties and land for development. WRIT’s dividends have increased every year for 38 consecutive years. WRIT shares are publicly traded on the New York Stock Exchange (NYSE:WRE).

2

Net Operating Income Contribution by Sector - First Quarter 2009

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.

Certain statements in the supplemental disclosures which follow are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to, the effect of the current credit and financial market conditions, the availability and cost of capital, fluctuations in interest rates, tenants’ financial conditions, the timing and pricing of lease transactions, levels of competition, the effect of government regulation, the impact of newly adopted accounting principles, 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 2008 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

March 31, 2009

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 March 31, 2009	21
Growth and Strategy
	2009 Development Summary	22
Appendix
	Schedule of Properties	23-24
	Supplemental Definitions	25

Consolidated Statements of Operations

(In thousands, except per share data)

(unaudited)

	Three Months Ended
OPERATING RESULTS	03/31/09			12/31/08			09/30/08			06/30/08			03/31/08
Real estate rental revenue	$	77,860		$	72,844		$	70,386		$	68,739		$	69,346
Real estate expenses		(27,404	)		(25,430	)		(23,977	)		(22,310	)		(22,678	)
		50,456			47,414			46,409			46,429			46,668
Real estate depreciation and amortization		(23,275	)		(23,604	)		(21,396	)		(20,994	)		(20,333	)
Income from real estate		27,181			23,810			25,013			25,435			26,335
Other income		320			277			338			220			238
Gain from non-disposal activities		—			—			17			—			—
Gain (loss) on extinguishment of debt		5,845			2,866			—			—			(8,449	)
Interest expense		(19,681	)		(18,854	)		(18,447	)		(18,840	)		(18,900	)
General and administrative		(3,182	)		(3,297	)		(2,731	)		(3,058	)		(3,023	)
Income (loss) from continuing operations		10,483			4,802			4,190			3,757			(3,799	)
Discontinued operations:
Income from operations of properties held for sale		417			526			439			972			1,132
Gain on sale of real estate		—			—			—			15,275			—
Income from discontinued operations		417			526			439			16,247			1,132
Net income (loss)		10,900			5,328			4,629			20,004			(2,667	)
Less: Net income from noncontrolling interests		(49	)		(53	)		(48	)		(53	)		(57	)
Net income (loss) attributable to the controlling interests	$	10,851		$	5,275		$	4,581		$	19,951		$	(2,724	)
Per Share Data
Net income (loss)	$	0.20		$	0.10		$	0.09		$	0.41		$	(0.06	)
Fully diluted weighted average shares outstanding		52,915			52,387			49,725			48,033			46,623
Percentage of Revenues:
Real estate expenses		35.2	%		34.9	%		34.1	%		32.5	%		32.7	%
General and administrative		4.1	%		4.5	%		3.9	%		4.4	%		4.4	%
Ratios:
EBITDA / Interest expense		2.7	x		2.5	x		2.4	x		2.4	x		1.9	x(1)
Income from continuing operations attributable to the controlling interest/Total real estate revenue		13.4	%		6.5	%		5.9	%		5.4	%		-5.6	%(1)
Net income attributable to the controlling interest/Total real estate revenue		13.9	%		7.2	%		6.5	%		29.0	%		-3.9	%(1)

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 Sheet

(in thousands)

(unaudited)

	March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008			March 31, 2008
Assets
Land	$	414,531		$	414,531		$	366,326		$	332,176		$	331,205
Income producing property		1,870,493			1,866,221			1,748,807			1,677,132			1,658,252
		2,285,024			2,280,752			2,115,133			2,009,308			1,989,457
Accumulated depreciation and amortization		(420,279	)		(400,487	)		(381,231	)		(362,613	)		(344,538	)
Net income producing property		1,864,745			1,880,265			1,733,902			1,646,695			1,644,919
Development in progress, including land held for development		23,678			23,732			23,545			59,068			59,023
Total real estate held for investment, net		1,888,423			1,903,997			1,757,447			1,705,763			1,703,942
Investment in real estate held for sale, net		16,401			16,408			16,421			16,512			40,140
Cash and cash equivalents		9,685			11,874			7,813			12,721			12,856
Restricted cash		19,343			18,823			47,074			48,868			7,637
Rents and other receivables, net of allowance for doubtful accounts		47,411			45,244			37,948			36,924			38,827
Prepaid expenses and other assets		105,615			112,599			101,553			82,730			85,290
Other assets related to properties sold or held for sale		295			462			520			235			2,011
Total assets	$	2,087,173		$	2,109,407		$	1,968,776		$	1,903,753		$	1,890,703
Liabilities and Equity
Notes payable	$	845,364		$	890,679		$	904,753		$	903,645		$	902,528
Mortgage notes payable		458,084			421,286			330,569			331,575			251,540
Lines of credit/short-term note payable		48,000			67,000			47,000			15,000			174,500
Accounts payable and other liabilities		71,587			70,569			65,723			59,112			57,541
Advance rents		9,100			9,001			9,270			8,773			9,362
Tenant security deposits		10,199			10,237			10,150			10,306			10,331
Other liabilities related to properties sold or held for sale		207			210			218			230			617
Total Liabilities		1,442,541			1,468,982			1,367,683			1,328,641			1,406,419
Equity
Shares of beneficial interest, $0.01 par value; 100,000 shares authorized		531			526			508			496			468
Additional paid-in capital		793,441			777,375			717,919			674,850			584,208
Distributions in excess of net income		(151,172	)		(138,936	)		(121,400	)		(104,405	)		(102,934	)
Accumulated other comprehensive income (loss)		(1,963	)		(2,335	)		276			380			(1,244	)
Total shareholders’ equity		640,837			636,630			597,303			571,321			480,498
Noncontrolling interests in subsidiaries		3,795			3,795			3,790			3,791			3,786
Total equity		644,632			640,425			601,093			575,112			484,284
Total liabilities and equity	$	2,087,173		$	2,109,407		$	1,968,776		$	1,903,753		$	1,890,703
Total Debt / Total Market Capitalization		0.60:1			0.48:1			0.41:1			0.46:1			0.46:1

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
	3/31/2009			12/31/2008			9/30/2008			6/30/2008			3/31/2008
Funds from operations(1)
Net income (loss) attributable to the controlling interests	$	10,851		$	5,275		$	4,581		$	19,951		$	(2,724	)
Real estate depreciation and amortization		23,275			23,604			21,396			20,994			20,333
Gain from non-disposal activities		—			—			(17	)		—			—
Discontinued operations:
Gain on sale		—			—			—			(15,275	)		—
Real estate depreciation and amortization		27			26			149			203			192
Funds From Operations (FFO)	$	34,153		$	28,905		$	26,109		$	25,873		$	17,801
FFO per share - basic	$	0.65		$	0.55		$	0.53		$	0.54		$	0.38
FFO per share - fully diluted	$	0.65		$	0.55		$	0.52		$	0.54		$	0.38
FFO per share - fully diluted, excluding gain (loss) on extinguishment of debt	$	0.53		$	0.50		$	0.52		$	0.54		$	0.56
Funds available for distribution(2)
Less: Gain on extinguishment of debt		(5,845	)		(2,866	)		—			—			—
Tenant improvements		(1,066	)		(2,759	)		(1,452	)		(5,029	)		(2,110	)
External and internal leasing commissions capitalized		(1,058	)		(1,184	)		(1,851	)		(1,429	)		(2,023	)
Recurring capital improvements		(1,174	)		(2,688	)		(1,936	)		(3,052	)		(2,116	)
Straight-line rent, net		(664	)		(517	)		(779	)		(712	)		(744	)
Non-cash fair value interest expense		1,128			266			1,067			1,061			1,047
Non-real estate depreciation and amortization		1,219			1,261			1,262			1,253			1,263
Amortization of lease intangibles, net		(597	)		(47	)		(533	)		(537	)		(506	)
Amortization and expensing of restricted share and unit compensation		577			417			706			716			699
Other		—			—			—			—			—
Funds Available for Distribution (FAD)	$	26,673		$	20,788		$	22,593		$	18,144		$	13,311
Total Dividends Paid	$	22,923		$	22,666		$	21,533		$	21,376		$	19,724
Average shares - basic		52,914			52,358			49,599			47,933			46,623
Average shares - fully diluted		52,915			52,604			49,849			48,148			46,623

⁽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
	03/31/09			12/31/08			09/30/08			06/30/08			03/31/08
EBITDA(1)
Net income attributable to the controlling interests	$	10,851		$	5,275		$	4,581		$	19,951		$	(2,724	)
Add:
Interest expense		19,681			18,854			18,447			18,840			18,900
Real estate depreciation and amortization		23,302			23,630			21,545			21,197			20,525
Non-real estate depreciation		305			315			299			285			276
Less:
Gain on sale of real estate		—			—			—			(15,275	)		—
Gain from non-disposal activities		—			—			(17	)		—			—
Other income		(320	)		(277	)		(338	)		(220	)		(238	)
EBITDA	$	53,819		$	47,797		$	44,517		$	44,778		$	36,739

⁽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)

	March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008			March 31, 2008
Balances Outstanding
Secured
Conventional fixed rate	$	458,084	(1)	$	421,286	(1)	$	330,569		$	331,575		$	251,540
Secured total		458,084			421,286			330,569			331,575			251,540
Unsecured
Fixed rate bonds and notes		845,364			890,679			904,753			903,645			902,528
Credit facility		48,000			67,000			47,000			15,000			174,500
Unsecured total		893,364			957,679			951,753			918,645			1,077,028
Total	$	1,351,448		$	1,378,965		$	1,282,322		$	1,250,220		$	1,328,568
Average Interest Rates
Secured
Conventional fixed rate		6.0	%(1)		6.1	%(1)		5.8	%		5.8	%		5.8	%
Secured total		6.0	%		6.1	%		5.8	%		5.8	%		5.8	%
Unsecured
Fixed rate bonds		5.6	%		5.6	%		5.6	%		5.6	%		5.6	%
Credit facilities		0.9	%		1.5	%		2.9	%		5.1	%		5.1	%
Unsecured total		5.3	%		5.3	%		5.5	%		5.6	%		5.5	%
Average		5.6	%		5.6	%		5.5	%		5.6	%		5.6	%

Note: The current balances outstanding of the secured and unsecured fixed rate bonds and notes are shown net of discounts/premiums in the amount of $7,932,022 and $1,059,630, respectively.

⁽¹⁾ Includes the impact of the $101.9 million loan with an interest rate of 5.619% per annum assumed with the purchase of 2445 M Street during the fourth quarter of 2008. In purchase accounting, the loan was recorded at its fair value of $91.7 million. The combined interest and discount amortization give the loan a fair value interest rate of 7.25%.

9

Long-Term Debt Analysis

(In thousands, except per share amounts)

Continued from previous page

Debt Maturity Schedule

Annual Expirations and Weighted Average Interest Rates

	Future Maturities of Debt
Year	Secured Debt		Unsecured Debt		Credit Facilities			Total Debt		Average Interest Rate
2009	$	53,207	$	—	$	—		$	53,207	7.0	%
2010		25,933		100,000		48,000	(2)		173,933	3.7	%
2011(1)		13,349		150,000		—			163,349	5.9	%
2012		21,362		50,000		—			71,362	5.0	%
2013		106,630		60,000		—			166,630	5.4	%
2014		1,516		100,000		—			101,516	5.3	%
2015		20,041		150,000		—			170,041	5.3	%
2016		82,281		—		—			82,281	5.7	%
2017		103,193		—		—			103,193	7.2	%
Thereafter (1)		38,504		245,424		—			283,928	6.1	%
Total maturities	$	466,016	$	855,424	$	48,000		$	1,369,440	5.6	%

Weighted average maturity = 6.8 years

⁽¹⁾ 3.875% convertible notes due 2026 in the aggregate principal amount of $195.4 million are puttable at par in September, 2011.

⁽²⁾ The unsecured line of credit with the outstanding balance matures in November, 2010, but may be extended for one year at WRIT’s option.

10

Capital Analysis

(In thousands, except per share amounts)

	March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008			March 31, 2008
Market Data
Shares Outstanding		53,000			52,434			50,661			49,461			46,716
Market Price per Share	$	17.30		$	28.30		$	36.63		$	30.05		$	33.42
Equity Market Capitalization	$	916,900		$	1,483,882		$	1,855,712		$	1,486,303		$	1,561,249
Total Debt	$	1,351,448		$	1,378,965		$	1,282,322		$	1,250,220		$	1,328,568
Total Market Capitalization	$	2,268,348		$	2,862,847		$	3,138,034		$	2,736,523		$	2,889,817
Total Debt to Market Capitalization		0.60:1			0.48:1			0.41:1			0.46:1			0.46:1
Earnings to Fixed Charges(1)		1.5	x		1.2	x		1.2	x		1.2	x		0.8	x(3)
Debt Service Coverage Ratio(2)		2.7	x		2.4	x		2.3	x		2.3	x		1.8	x(3)
Dividend Data
Total Dividends Paid	$	22,923		$	22,666		$	21,533		$	21,376		$	19,724
Common Dividend per Share	$	0.4325		$	0.4325		$	0.4325		$	0.4325		$	0.4225
Payout Ratio (FFO per share basis)		66.5	%		78.6	%		81.6	%		80.1	%		111.2	%

⁽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

2009 vs. 2008

Cash Basis

	First Quarter(1)
Sector	NOI Growth		Rental Rate Growth
Multifamily	3.2	%	2.2	%
Office Buildings	-5.2	%	3.6	%
Medical Office Buildings	3.4	%	3.1	%
Retail Centers	-6.3	%	3.4	%
Industrial / Flex Properties	-6.3	%	1.4	%
Overall Core Portfolio	-3.4	%	3.0	%

GAAP Basis

	First Quarter(1)
Sector	NOI Growth		Rental Rate Growth
Multifamily	3.1	%	2.2	%
Office Buildings	-6.1	%	2.9	%
Medical Office Buildings	3.6	%	2.5	%
Retail Centers	-8.0	%	3.0	%
Industrial / Flex Properties	-7.8	%	1.0	%
Overall Core Portfolio	-4.3	%	2.5	%

¹ Non-core properties were:

2008 acquisitions - 6100 Columbia Park Road, Sterling Medical Office Building, Kenmore Apartments and 2445 M Street.

2008 sold properties - Sullyfield Center and The Earhart Building.

2008 held for sale properties - Avondale and Charleston Business Center.

In development - Bennett Park, Clayborne Apartments and Dulles Station.

12

Core Portfolio Net Operating Income (NOI) Summary

(In thousands)

	Three Months Ended March 31,
	2009		2008		% Change
Cash Basis:
Multifamily	$	4,659	$	4,516	3.2	%
Office Buildings		17,693		18,673	-5.2	%
Medical Office Buildings		7,191		6,952	3.4	%
Retail Centers		7,684		8,201	-6.3	%
Industrial/Flex		6,880		7,340	-6.3	%
	$	44,107	$	45,682	-3.4	%
GAAP Basis:
Multifamily	$	4,659	$	4,519	3.1	%
Office Buildings		18,119		19,305	-6.1	%
Medical Office Buildings		7,485		7,224	3.6	%
Retail Centers		7,706		8,374	-8.0	%
Industrial/Flex		6,949		7,536	-7.8	%
	$	44,918	$	46,958	-4.3	%

13

Core Portfolio Net Operating Income (NOI) Detail

(In thousands)

	Three Months Ended March 31, 2009
	Multifamily			Office			Medical Office			Retail			Industrial			Corporate and Other			Total
Real estate rental revenue
Core Portfolio	$	8,064		$	28,967		$	11,327		$	10,579		$	9,812		$	—		$	68,749
Non-core - acquired and in development 1		3,105			5,443			159			—			404			—			9,111
Total		11,169			34,410			11,486			10,579			10,216			—			77,860
Real estate expenses
Core Portfolio		3,405			10,848			3,842			2,873			2,863			—			23,831
Non-core - acquired and in development 1		1,484			1,872			91			—			126			—			3,573
Total		4,889			12,720			3,933			2,873			2,989			—			27,404
Net Operating Income (NOI)
Core Portfolio		4,659			18,119			7,485			7,706			6,949			—			44,918
Non-core - acquired and in development 1, 3		1,621			3,571			68			—			278			—			5,538
Total	$	6,280		$	21,690		$	7,553		$	7,706		$	7,227		$	—		$	50,456
Core Portfolio NOI GAAP Basis (from above)	$	4,659		$	18,119		$	7,485		$	7,706		$	6,949		$	—		$	44,918
Straight-line revenue, net for core properties		—			(75	)		(155	)		75			(60	)		—			(215	)
FAS 141 Min Rent		—			(356	)		(139	)		(100	)		(14	)		—			(609	)
Amortization of lease intangibles for core properties		—			5			—			3			5			—			13
Core portfolio NOI, Cash Basis	$	4,659		$	17,693		$	7,191		$	7,684		$	6,880		$	—		$	44,107
Reconciliation of NOI to Net Income
Total NOI	$	6,280		$	21,690		$	7,553		$	7,706		$	7,227		$	—		$	50,456
Other income		—			—			—			—			—			320			320
Interest expense		(2,341	)		(2,582	)		(1,369	)		(326	)		(242	)		(12,821	)		(19,681	)
Depreciation and amortization		(3,466	)		(11,101	)		(3,641	)		(1,807	)		(2,998	)		(262	)		(23,275	)
General and administrative		—			—			—			—			—			(3,182	)		(3,182	)
Discontinued operations2		312			—			—			—			105			—			417
Gain on extinguishment of debt		—			—			—			—			—			5,845			5,845
Net Income		785			8,007			2,543			5,573			4,092			(10,100	)		10,900
Net income attributable to noncontrolling interests		—			—			—			—			—			(49	)		(49	)
Net income attributable to the controlling interests	$	785		$	8,007		$	2,543		$	5,573		$	4,092		$	(10,149	)	$	10,851

¹ Non-core acquired and in development properties:

2008 acquisitions - 6100 Columbia Park Road, Sterling Medical Office Building, Kenmore Apartments and 2445 M Street.

In development - Bennett Park, Clayborne Apartments and Dulles Station.

² Discontinued operations include: Held for Sale Properties - Avondale and Charleston Business Center.

14

Core Portfolio Net Operating Income (NOI) Detail

(In thousands)

	Three Months Ended March 31, 2008
	Multifamily			Office			Medical Office			Retail			Industrial			Corporate and Other			Total
Real estate rental revenue
Core portfolio	$	7,753		$	29,701		$	10,734		$	10,646		$	10,009		$	—		$	68,843
Non-core - acquired and in development 1		379			—			—			—			124			—			503
Total		8,132			29,701			10,734			10,646			10,133			—			69,346
Real estate expenses
Core portfolio		3,234			10,396			3,510			2,272			2,473			—			21,885
Non-core - acquired and in development 1		607			149			—			—			37			—			793
Total		3,841			10,545			3,510			2,272			2,510			—			22,678
Net operating income (NOI)
Core portfolio		4,519			19,305			7,224			8,374			7,536			—			46,958
Non-core - acquired and in development 1		(228	)		(149	)		—			—			87			—			(290	)
Total	$	4,291		$	19,156		$	7,224		$	8,374		$	7,623		$	—		$	46,668
Core portfolio NOI GAAP basis (from above)	$	4,519		$	19,305		$	7,224		$	8,374		$	7,536		$	—		$	46,958
Straight-line revenue, net for core properties		(4	)		(290	)		(174	)		(23	)		(223	)		—			(714	)
FAS 141 min rent		—			(348	)		(98	)		(153	)		22			—			(577	)
Amortization of lease intangibles for core properties		1			6			—			3			5			—			15
Core portfolio NOI, cash basis	$	4,516		$	18,673		$	6,952		$	8,201		$	7,340		$	—		$	45,682
Reconciliation of NOI to net income
Total NOI	$	4,291		$	19,156		$	7,224		$	8,374		$	7,623		$	—		$	46,668
Other income		—			—			—			—			—			238			238
Gain from non-disposal activities		—			—			—			—			—			—			—
Interest expense		(913	)		(852	)		(1,408	)		(335	)		(245	)		(15,147	)		(18,900	)
Depreciation and amortization		(2,857	)		(9,013	)		(3,512	)		(1,829	)		(2,938	)		(184	)		(20,333	)
General and administrative		—			—			—			—			—			(3,023	)		(3,023	)
Discontinued operations2		111			—			—			—			1,021			—			1,132
Gain (loss) on extinguishment of debt		—			—			—			—			—			(8,449	)		(8,449	)
Net income		632			9,291			2,304			6,210			5,461			(26,565	)		(2,667	)
Net income attributable to noncontrolling interests		—			—			—			—			—			(57	)		(57	)
Net income attributable to the controlling interests	$	632		$	9,291		$	2,304		$	6,210		$	5,461		$	(26,622	)	$	(2,724	)

¹ Non-core acquired and in development properties were:

2008 acquisition - 6100 Columbia Park Road.

In development - Bennett Park, Clayborne Apartments and Dulles Station.

² Discontinued operations include: Sold Properties - Sullyfield Center and The Earhart Building. Held for Sale Properties - Avondale and Charleston Business Center.

15

Core Portfolio & Overall Economic Occupancy Levels by Sector

Q1 2009 vs. Q1 2008

GAAP Basis
	Core Portfolio				All Properties
Sector	1st QTR 2009		1st QTR 2008		1st QTR 2009		1st QTR 2008
Multifamily	91.6	%	92.8	%	87.4	%	79.6	%
Office Buildings	92.2	%	95.5	%	92.6	%	95.5	%
Medical Office Buildings	97.1	%	97.9	%	96.5	%	97.9	%
Retail Centers	95.2	%	95.3	%	95.2	%	95.3	%
Industrial / Flex Properties	90.3	%	94.7	%	90.4	%	93.8	%
Overall Portfolio	93.1	%	95.4	%	92.3	%	93.0	%

16

Commercial Leasing Summary

Three months ended 3/31/09

	1st Quarter 2009
Gross Leasing Square Footage
Office Buildings		63,159
Medical Office Buildings		10,717
Retail Centers		21,213
Industrial Centers		139,826
Total		234,915
Weighted Average Term (yrs)
Office Buildings		6.3
Medical Office Buildings		4.9
Retail Centers		3.4
Industrial Centers		2.3
Total		3.6
	GAAP			CASH
Rental Rate Increases:
Rate on expiring leases
Office Buildings	$	28.08		$	29.29
Medical Office Buildings		31.94			32.88
Retail Centers		18.48			18.56
Industrial Centers		8.67			9.69
Total	$	15.83		$	16.82
Rate on new and renewal leases
Office Buildings	$	31.84		$	29.23
Medical Office Buildings		35.08			33.09
Retail Centers		17.52			16.29
Industrial Centers		9.82			9.65
Total	$	17.59		$	16.58
Percentage Increase
Office Buildings		13.41	%		-0.19	%
Medical Office Buildings		9.82	%		0.65	%
Retail Centers		-5.21	%		-12.25	%
Industrial Centers		13.35	%		-0.39	%
Total		11.10	%		-1.38	%

17

Commercial Leasing Summary

Continued from previous page

Three months ended 3/31/09

	1st Quarter 2009
	Total Dollars		Dollars per Square Foot
Tenant Improvements
Office Buildings	$	1,012,367	$	16.03
Medical Office Buildings		87,051		8.12
Retail Centers		5,594		0.26
Industrial Centers		23,847		0.17
Subtotal	$	1,128,859	$	4.81
	Total Dollars		Dollars per Square Foot
Leasing Costs
Office Buildings	$	780,778	$	12.36
Medical Office Buildings		21,977		2.05
Retail Centers		73,743		3.48
Industrial Centers		79,034		0.57
Subtotal	$	955,532	$	4.07
	Total Dollars		Dollars per Square Foot
Tenant Improvements and Leasing Costs
Office Buildings	$	1,793,145	$	28.39
Medical Office Buildings		109,028		10.17
Retail Centers		79,337		3.74
Industrial Centers		102,881		0.74
Total	$	2,084,391	$	8.87

18

10 Largest Tenants - Based on Annualized Rent

March 31, 2009

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	32	4.29	%	210,354	2.12	%
Advisory Board Company	1	122	2.66	%	180,925	1.82	%
Sunrise Assisted Living, Inc.	1	54	2.44	%	184,202	1.85	%
IBM Corporation	2	119	1.90	%	134,734	1.36	%
General Services Administration	8	21	1.86	%	256,188	2.58	%
Patton Boggs LLP	1	97	1.80	%	110,566	1.11	%
INOVA Health System	6	55	1.57	%	95,682	0.96	%
Lafarge North America, Inc	1	16	1.27	%	80,610	0.81	%
URS Corporation	1	57	1.15	%	84,970	0.85	%
George Washington University	2	83	1.11	%	77,538	0.78	%
Total/Weighted Average		63	20.05	%	1,415,769	14.24	%

19

Industry Diversification

March 31, 2009

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	$	57,680,413	26.52	%	2,228,332	22.41	%
Ambulatory Health Care Services		40,050,646	18.41	%	1,330,693	13.38	%
Credit Intermediation and Related Activities		15,548,342	7.15	%	403,518	4.06	%
Executive, Legislative & Other General Government		8,211,021	3.78	%	421,839	4.24	%
Educational Services		6,565,080	3.02	%	246,128	2.48	%
Religious, Grantmaking, Civic, Professional		6,561,903	3.02	%	205,715	2.07	%
Nursing and Residential Care Facilities		5,908,018	2.72	%	214,534	2.16	%
Food Services and Drinking Places		5,809,698	2.67	%	225,476	2.27	%
Administrative and Support Services		5,108,806	2.35	%	329,391	3.31	%
Food and Beverage Stores		4,097,668	1.88	%	256,562	2.58	%
Furniture and Home Furnishing Stores		3,817,614	1.76	%	233,465	2.35	%
Miscellaneous Store Retailers		3,732,440	1.72	%	263,341	2.65	%
Merchant Wholesalers-Durable Goods		3,611,195	1.66	%	366,278	3.68	%
Nonmetallic Mineral Product Manufacturing		3,140,533	1.44	%	119,474	1.20	%
Broadcasting (except Internet)		3,067,956	1.41	%	87,939	0.88	%
Specialty Trade Contractors		2,938,399	1.35	%	324,465	3.26	%
Personal and Laundry Services		2,856,741	1.31	%	128,010	1.29	%
Health & Personal Care Services		2,278,940	1.05	%	76,807	0.77	%
Clothing & Clothing Accessories Stores		2,214,231	1.02	%	138,986	1.40	%
Merchant Wholesalers-Non Durable Goods		2,138,765	0.98	%	226,518	2.28	%
Sporting Goods/Books/Hobby/Music Stores		2,126,731	0.98	%	152,724	1.54	%
Real Estate		1,898,699	0.87	%	74,836	0.75	%
Miscellaneous Manufacturing		1,871,660	0.86	%	183,486	1.85	%
Hospitals		1,828,670	0.84	%	59,118	0.59	%
Construction of Buildings		1,711,975	0.79	%	111,142	1.12	%
General Merchandise Stores		1,670,304	0.77	%	222,430	2.24	%
Amusement, Gambling and Recreation Industries		1,611,634	0.74	%	133,268	1.34	%
Insurance Carriers and Related Activities		1,557,303	0.72	%	70,651	0.71	%
Telecommunications		1,238,335	0.57	%	43,907	0.44	%
Other		16,680,582	7.64	%	1,066,527	10.70	%
Total	$	217,534,302	100.00	%	9,945,560	100.00	%

20

Lease Expirations

March 31, 2009

	Year	Number of Leases	Rentable Square Feet	Percent of Rentable Square Feet		Annualized Rent *		Average Rental Rate		Percent of Annualized Rent *
Office:
	2009	92	279,490	7.24	%	$	7,691,989	$	27.52	5.94	%
	2010	136	776,463	20.11	%		24,950,407		32.13	19.27	%
	2011	114	560,023	14.50	%		18,529,203		33.09	14.31	%
	2012	80	382,808	9.91	%		11,957,103		31.24	9.24	%
	2013	62	529,488	13.71	%		16,785,033		31.70	12.97	%
	2014 and thereafter	136	1,333,828	34.53	%		49,543,156		37.14	38.27	%
		620	3,862,100	100.00	%	$	129,456,891	$	33.52	100.00	%
Medical Office:
	2009	37	87,564	7.31	%	$	2,762,131	$	31.54	6.29	%
	2010	55	165,810	13.84	%		5,559,432		33.53	12.66	%
	2011	66	224,329	18.73	%		7,778,259		34.67	17.71	%
	2012	43	135,811	11.34	%		5,046,937		37.16	11.49	%
	2013	45	137,623	11.49	%		4,801,875		34.89	10.93	%
	2014 and thereafter	110	446,813	37.29	%		17,978,158		40.24	40.92	%
		356	1,197,950	100.00	%	$	43,926,792	$	36.67	100.00	%
Retail:
	2009	38	124,134	6.74	%	$	2,563,484	$	20.65	7.08	%
	2010	55	313,702	17.02	%		5,641,001		17.98	15.57	%
	2011	37	160,211	8.69	%		3,082,348		19.24	8.51	%
	2012	39	140,801	7.64	%		3,194,709		22.69	8.82	%
	2013	39	291,107	15.79	%		4,529,963		15.56	12.50	%
	2014 and thereafter	88	813,229	44.12	%		17,219,880		21.17	47.52	%
		296	1,843,184	100.00	%	$	36,231,385	$	19.66	100.00	%
Industrial:
	2009	41	370,510	11.88	%	$	3,394,513	$	9.16	9.50	%
	2010	65	503,553	16.15	%		5,724,474		11.37	16.02	%
	2011	67	622,067	19.95	%		5,991,633		9.63	16.77	%
	2012	33	449,805	14.42	%		5,273,793		11.72	14.76	%
	2013	26	410,358	13.16	%		4,901,424		11.94	13.72	%
	2014 and thereafter	42	762,678	24.44	%		10,439,019		13.69	29.23	%
		274	3,118,971	100.00	%	$	35,724,856	$	11.45	100.00	%
Total:
	2009	208	861,698	8.60	%	$	16,412,117	$	19.05	6.69	%
	2010	311	1,759,528	17.56	%		41,875,314		23.80	17.07	%
	2011	284	1,566,630	15.63	%		35,381,443		22.58	14.42	%
	2012	195	1,109,225	11.07	%		25,472,542		22.96	10.38	%
	2013	172	1,368,576	13.66	%		31,018,295		22.66	12.64	%
	2014 and thereafter	376	3,356,548	33.48	%		95,180,213		28.36	38.80	%
		1,546	10,022,205	100.00	%	$	245,339,924	$	24.48	100.00	%

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

21

2009 Development Summary

as of March 31, 2009

($’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			$	26,115	(1	)	$	8,009	(1	)	n/a	(1)	$	18,106	n/a
Kenmore Avenue	Alexandria, VA	tbd		n/a				4,923				—			n/a			4,923	n/a
Other	Various	n/a		n/a				554				—			n/a			554	n/a
							$	31,592			$	8,009					$	23,583
Projects Placed in Service During 2007 and 2008
Dulles Station Phase I	Herndon, VA	180,000	$	60,500			$	44,910			$	44,897			3Q07/3Q08	(2)	$	13	87%
Bennett Park Apartments	Arlington, VA	268,000		86,500	(3	)		86,432	(3	)		86,366	(3	)	4Q07			66	79%
Clayborne Apartments	Alexandria, VA	87,000		36,752	(4	)		36,752	(4	)		36,736	(4	)	1Q08			16	82%
			$	183,752			$	168,094			$	167,999					$	95

(1) Represents allocation of completed garage at Dulles Station to Phase II. The garage was placed into service in 3Q07.

(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.

22

Schedule of Properties

March 31, 2009

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	276,000
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
Dulles Station	Herndon, VA	2005	2007	180,000
2445 M Street	Washington, DC	2008	1986	290,000
Subtotal				4,211,000
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 Foxchase (1)	Alexandria, VA	1994	1960	134,000
Frederick County Square	Frederick, MD	1995	1973	227,000
800 S. Washington Street	Alexandria, VA	1998/2003	1955/1959	44,000
Centre at Hagerstown	Hagerstown, MD	2002	2000	332,000
Frederick Crossing	Frederick, MD	2005	1999/2003	295,000
Randolph Shopping Center	Rockville, MD	2006	1972	82,000
Montrose Shopping Center	Rockville, MD	2006	1970	143,000
Subtotal				2,022,000

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

23

	Schedule of Properties (Cont.)
	March 31, 2009

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	1971/2003(2)	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				13,425,000

* 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.

24

Supplemental Definitions

March 31, 2009

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 attributable to the controlling interest before interest, taxes, depreciation and amortization.

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

Debt service coverage ratio is computed by dividing earnings attributable to the controlling interest before interest 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 attributable to the controlling interest (computed in accordance with generally accepted accounting principles (GAAP)) excluding gains (or losses) from sales of property plus real estate depreciation and amortization. FFO is a non-GAAP measure.

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, gain/loss from extinguishment of debt 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.

25