8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) February 18, 2010

WASHINGTON REAL ESTATE INVESTMENT TRUST

(Exact name of registrant as specified in its charter)

Maryland	1-6622	53-0261100
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

6110 Executive Boulevard, Suite 800, Rockville, Maryland	20852
(Address of principal executive offices)	(Zip Code)

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

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

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

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

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

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

Item 2.02 Results of Operations and Financial Condition

and

Item 7.01 Regulation FD Disclosure

A press release issued by the Registrant on February 18, 2010, regarding earnings for the three and twelve months ended December 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 February 18, 2010 regarding earnings for the three and twelve months ended December 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

February 18, 2010

    (Date)

Exhibit Index

Exhibit Number	Description
99.1	Press Release issued February 18, 2010 regarding earnings for the three and twelve months ended December 31, 2009.
99.2	Certain supplemental information not included in the press release

EX-99.1

Exhibit 99.1

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

February 18, 2010

WASHINGTON REAL ESTATE INVESTMENT TRUST ANNOUNCES

FOURTH QUARTER AND YEAR-END OPERATING RESULTS FOR 2009

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

• Net income attributable to the controlling interests for the year ending December 31, 2009 was $40.7 million, or $0.71 per diluted share, compared to $27.1 million, or $0.55 per diluted share, in 2008. Included in 2009 net income per share is a $0.09 gain on extinguishment of debt. Included in 2008 net income per share is an $0.11 loss related to the extinguishment of debt. Also included in 2009 and 2008 full year net income per share are respective charges of $0.13 and $0.12 per diluted share from the adoption of an accounting pronouncement impacting the accounting of our 3.875% convertible notes⁽¹⁾.

• Net income attributable to the controlling interests for the quarter ending December 31, 2009 was $7.3 million, or $0.12 per diluted share, compared to $5.3 million, or $0.10 per diluted share, in the same period one year ago. Included in the fourth quarter 2009 and fourth quarter 2008 net income are respective charges of $0.01 and $0.04 per diluted share from the adoption of an accounting pronouncement impacting the accounting of our 3.875% convertible notes⁽¹⁾.

• Funds from Operations (FFO)⁽²⁾ for the year ending December 31, 2009 was $121.8 million, or $2.14 per diluted share, compared to $98.7 million, or $2.00 per diluted share, in 2008. FFO for the quarter ending December 31, 2009 was $29.7 million, or $0.50 per diluted share, compared to $28.9 million, or $0.55 per diluted share, in the same period one year ago.

Capital Structure

In the fourth quarter, WRIT used capacity on its line of credit to prepay its $100 million unsecured term loan due in November 2011, incurring a one-time charge of $1.5 million. WRIT also repurchased $8.1 million of its 3.875% convertible notes at an average discounted price of 96.9% of par for approximately $7.8 million. Subsequent to the quarter end, WRIT repurchased an additional $1.2 million of its convertible notes at an average discounted price of 99.3% of par.

WRIT completed the sale of Crossroads Distribution Center, an 85,000 square foot industrial property in Elkridge, Maryland, for $4.4 million and a net book gain of $1.5 million.

On December 31, 2009, WRIT paid a quarterly dividend of $0.4325 per share for its 192^nd consecutive quarterly dividend at equal or increasing rates.

As of December 31, 2009, WRIT had a total market capitalization of $2.9 billion.⁽³⁾

Operating Results

Overall portfolio economic occupancy for the fourth quarter was 92.4%, compared to 92.6% in the same period one year ago and 93.0% in the third quarter of 2009. Overall portfolio Net Operating Income (NOI)⁽⁴⁾ was $51.7 million compared to $47.1 million in the same period one year ago and $49.7 million in the third quarter of 2009.

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Core⁽⁵⁾ portfolio economic occupancy for the fourth quarter was 92.7%, a decrease of 100 basis points (bps) from the same period one year ago. Compared to the third quarter, core portfolio economic occupancy decreased 10 bps. Core portfolio NOI for the fourth quarter increased 4.8% and rental rate growth was 1.9% compared to the same period one year ago.

• Multifamily properties’ core NOI for the fourth quarter increased 0.8% compared to the same period one year ago. Rental rate growth was -1.8% while core economic occupancy increased 170 bps to 94.5%. Sequentially, core economic occupancy increased 20 bps from the third quarter of 2009. The multifamily segment contributed 13.4% of our overall NOI for the fourth quarter of 2009.

• Office properties’ core NOI for the fourth quarter increased 6.6% compared to the same period one year ago. Rental rate growth was 5.5% while core economic occupancy decreased 130 bps to 92.0%. Sequentially, core economic occupancy increased 30 bps from the third quarter of 2009. The office segment contributed 44.0% of our overall NOI for the fourth quarter of 2009.

• Medical office properties’ core NOI for the fourth quarter increased 2.1% compared to the same period one year ago. Rental rate growth was 2.4% while core economic occupancy increased 70 bps to 95.9%. Sequentially, core economic occupancy decreased 10 bps from the third quarter of 2009. The medical office segment contributed 14.3% of our overall NOI for the fourth quarter of 2009.

• Retail properties’ core NOI for the fourth quarter increased 16.3% compared to the same period one year ago. Rental rate growth was -0.3% while core economic occupancy decreased 40 bps to 94.4%. Sequentially, core economic occupancy increased 40 bps from the third quarter of 2009. The retail segment contributed 15.7% of our overall NOI for the fourth quarter of 2009.

• Industrial properties’ core NOI for the fourth quarter decreased 5.2% compared to the same period one year ago. Rental rate growth was -3.1% while core economic occupancy decreased 590 bps to 87.1%. Sequentially, core economic occupancy decreased 250 bps from the third quarter of 2009. The industrial segment contributed 12.6% of our overall NOI for the fourth quarter of 2009.

Leasing Activity

During the fourth quarter, WRIT signed commercial leases for 308,019 square feet with an average rental rate increase of 4.2% over expiring lease rates, an average lease term of 5.4 years, tenant improvement costs of $9.60 per square foot and leasing costs of $9.63 per square foot.

• Rental rates for new and renewed office leases increased 0.1% to $29.90 per square foot, with $10.71 per square foot in tenant improvement costs and $12.83 per square foot in leasing costs.

• Rental rates for new and renewed medical office leases increased 28.0% to $38.88 per square foot, with $21.48 per square foot in tenant improvement costs and $20.48 per square foot in leasing costs.

• Rental rates for new and renewed retail leases decreased 0.2% to $13.67 per square foot, with $7.48 per square foot in tenant improvement costs and $4.38 per square foot in leasing costs.

• Rental rates for new and renewed industrial/flex leases decreased 3.3% to $9.02 per square foot, with $1.45 per square foot in tenant improvement costs and $2.69 per square foot in leasing costs.

Residential rental rates decreased 1.8% in the fourth quarter compared to the same period one year ago.

Earnings Guidance

For 2010, WRIT expects FFO per fully diluted share to be $1.86 - $2.00. The following assumptions are incorporated into this guidance:

• Effective occupancy, which accounts for vacancy, bad debt and abatements as a percentage of minimum rent, ended 2009 at 11.8% and is expected to range between 11.5% and 12.5% throughout 2010. Every 100 basis point change in effective occupancy equates to approximately $0.05 per fully diluted share in FFO on an annual basis.

• Net operating income is expected to decline by a range of $0.00 - $0.05, including snow removal costs of $0.02 per fully diluted share after reimbursements.

• Dilution from the full year impact of issuing additional equity last year to reduce overall leverage is expected to lower FFO per fully diluted share by an additional $0.10 in 2010.

• Straight-line rent impact of the lease signed at 1776 G Street in mid-2009 is expected to add approximately $0.01 per fully diluted share to FFO as compared to 2009 results.

• Interest expense for 2010 is estimated to range between $0.02 - $0.05 per fully diluted share lower than reported 2009 results due to the reduction in overall debt. This range includes a swap termination charge of $0.02 - $0.04 per fully diluted share depending on interest rates at the time of payment.

• General and administrative expense is estimated to range between $0.00 - $0.02 per fully diluted share lower than 2009 results.

• Acquisition volume of $50 - $150 million will negatively impact FFO by $0.00 - $0.03 per fully diluted share primarily due to the expensing of acquisition costs.

• Disposition volume of $25 - $75 million will negatively impact FFO by $0.02 - $0.03 per fully diluted share.

Conference Call Information

The Conference Call for 4^th Quarter Earnings is scheduled for Friday, February 19, 2010 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

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The instant replay of the Conference Call will be available until March 5, 2010 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:	341356

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 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 90 properties totaling approximately 11 million square feet of commercial space and 2,540 residential units. These 90 properties consist of 27 office properties, 20 industrial/flex properties, 18 medical office properties, 14 retail centers, 11 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 our earnings release and on our conference call 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, our third quarter 2009 10-Q and our Form 8-K filed July 10, 2009. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

⁽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 December 31, 2009 and 2008. The principal balance of our 3.875% convertible notes was reduced by $4.3 million and $12.0 million as of December 31, 2009 and 2008, respectively, and the unamortized balance of the related loan origination costs was reduced by $2.1 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 $3.6 million and $5.1 million in 2009 and 2008, respectively, as a result of the adoption. The gain (loss) on extinguishment of debt decreased $3.6 million and $0.6 million in 2009 and 2008, respectively, as a result of the adoption. Interest expense increased $0.7 million in the fourth quarter of 2009 and $1.3 million in the fourth quarter of 2008 as a result of the adoption. The gain (loss) on extinguishment of debt decreased $0.2 million in the fourth quarter of 2009 and $0.6 million in the fourth quarter of 2008 as a result of the adoption.

⁽²⁾ 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.

⁽³⁾ Total market capitalization is calculated by multiplying the total outstanding common shares at period end by the closing share price on the last trading day of the period, and then adding the book value of the total outstanding debt at period end.

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⁽⁴⁾ 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.

⁽⁵⁾ 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.

⁽⁶⁾ 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.

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

	Core Properties				All Properties
Segment	4th QTR 2009		4th QTR 2008		4th QTR 2009		4th QTR 2008
Residential	94.5	%	92.8	%	94.1	%(ii)	87.6	%
Office	92.0	%	93.3	%	92.6	%	93.2	%
Medical Office	95.9	%	95.2	%	92.7	%	95.2	%
Retail	94.4	%	94.8	%	94.4	%	94.8	%
Industrial	87.1	%	93.0	%	87.3	%	92.5	%
Overall Portfolio	92.7	%	93.7	%	92.4	%	92.6	%

⁽ⁱ⁾ Core properties include all properties that were owned for the entirety of the current and prior year reporting periods. For Q4 2009 and Q4 2008, core properties exclude:

Residential Acquisitions: none;

Office Acquisition: 2445 M Street;

Medical Office Acquisition: Lansdowne Medical Office Building;

Retail Acquisitions: none;

Industrial Acquisitions: none.

Also excluded from Core Properties in Q4 2009 and Q4 2008 are:

Sold Properties: Avondale, Brandywine Center, Tech 100 and Crossroads Distribution Center;

Held for Sale Property: Charleston Business Center;

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 12/31/09, 218 of 224 units were occupied at Bennett Park and 69 of 74 units were occupied at Clayborne Apartments.

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WASHINGTON REAL ESTATE INVESTMENT TRUST

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
OPERATING RESULTS	2009			2008			2009			2008
Revenue
Real estate rental revenue	$	77,866		$	72,286		$	306,929		$	278,691
Expenses
Real estate expenses		26,164			25,216			104,573			93,499
Depreciation and amortization		23,947			23,446			94,042			85,659
General and administrative		3,174			3,297			13,906			12,110
		53,285			51,959			212,521			191,268
Real estate operating income		24,581			20,327			94,408			87,423
Other income (expense):
Interest expense(1)		(17,780	)		(18,854	)		(75,001	)		(75,041	)
Investment income		284			277			1,205			1,073
Gain (loss) on extinguishment of debt(1)		(1,595	)		2,866			5,336			(5,583	)
Gain from non-disposal activities		11			—			73			17
		(19,080	)		(15,711	)		(68,387	)		(79,534	)
Income from continuing operations		5,501			4,616			26,021			7,889
Discontinued operations:
Income from operations of properties held for sale		275			712			1,579			4,129
Gain on sale of real estate		1,527			—			13,348			15,275
Net income		7,303			5,328			40,948			27,293
Less: Net income attributable to noncontrolling interests in subsidiaries		(49	)		(53	)		(203	)		(211	)
Net income attributable to the controlling interests	$	7,254		$	5,275		$	40,745		$	27,082
Income from continuing operations attributable to the controlling interests	$	5,452		$	4,563		$	25,818		$	7,678
Gain from non-disposal activities		(11	)		—			(73	)		(17	)
Continuing operations real estate depreciation and amortization		23,947			23,446			94,042			85,659
Funds from continuing operations	$	29,388		$	28,009		$	119,787		$	93,320
Income from discontinued operations before gain on sale		275			712			1,579			4,129
Discontinued operations real estate depreciation and amortization		1			184			405			1,239
Funds from discontinued operations		276			896			1,984			5,368
Funds from operations(2)	$	29,664		$	28,905		$	121,771		$	98,688
Non-cash (gain) loss on extinguishment of debt		595			(2,866	)		(6,336	)		(2,866	)
Tenant improvements		(4,425	)		(2,759	)		(12,490	)		(11,350	)
External and internal leasing commissions capitalized		(1,058	)		(1,184	)		(5,845	)		(6,487	)
Recurring capital improvements		(1,442	)		(2,688	)		(6,356	)		(9,792	)
Straight-line rents, net		(1,527	)		(517	)		(3,379	)		(2,752	)
Non-cash fair value interest expense		773			266			3,595			3,441
Non real estate depreciation & amortization of debt costs		1,037			1,261			4,555			5,039
Amortization of lease intangibles, net		(777	)		(47	)		(2,587	)		(1,623	)
Amortization and expensing of restricted share and unit compensation		820			417			3,460			2,538
Funds available for distribution(6)	$	23,660		$	20,788		$	96,388		$	74,836

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

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		Three Months Ended December 31,				Twelve Months Ended December 31,
Per share data attributable to the controlling interests:		2009		2008		2009		2008
Income from continuing operations	(Basic)	$	0.09	$	0.09	$	0.45	$	0.15
	(Diluted)	$	0.09	$	0.09	$	0.45	$	0.15
Net income	(Basic)	$	0.12	$	0.10	$	0.71	$	0.55
	(Diluted)	$	0.12	$	0.10	$	0.71	$	0.55
Funds from continuing operations	(Basic)	$	0.49	$	0.53	$	2.10	$	1.90
	(Diluted)	$	0.49	$	0.53	$	2.10	$	1.89
Funds from operations	(Basic)	$	0.50	$	0.55	$	2.14	$	2.01
	(Diluted)	$	0.50	$	0.55	$	2.14	$	2.00
Dividends paid		$	0.4325	$	0.4325	$	1.7300	$	1.7200
Weighted average shares outstanding			59,735		52,358		56,894		49,138
Fully diluted weighted average shares outstanding			59,833		52,387		56,968		49,217

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WASHINGTON REAL ESTATE INVESTMENT TRUST

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

	December 31, 2009			December 31, 2008
Assets
Land	$	412,137		$	410,833
Income producing property		1,899,378			1,854,008
		2,311,515			2,264,841
Accumulated depreciation and amortization		(474,171	)		(394,902	)
Net income producing property		1,837,344			1,869,939
Development in progress		25,031			23,732
Total real estate held for investment, net		1,862,375			1,893,671
Investment in real estate sold or held for sale		3,841			26,734
Cash and cash equivalents		11,203			11,874
Restricted cash		19,170			18,823
Rents and other receivables, net of allowance for doubtful accounts of $6,455 and $6,122, respectively		50,525			44,675
Prepaid expenses and other assets(1)		97,815			112,284
Other assets related to property sold or held for sale		296			1,346
Total assets	$	2,045,225		$	2,109,407
Liabilities
Notes payable(1)	$	688,912		$	890,679
Mortgage notes payable		405,451			421,286
Lines of credit		128,000			67,000
Accounts payable and other liabilities		52,649			70,538
Advance rents		11,211			8,926
Tenant security deposits		9,854			10,084
Other liabilities related to property sold or held for sale		85			469
Total liabilities	$	1,296,162		$	1,468,982
Shareholders’ equity
Shares of beneficial interest, $0.01 par value; 100,000 Shares authorized; 59,811 and 52,434 shares issued and outstanding, respectively		599			526
Additional paid-in capital(1)		944,825			777,375
Distributions in excess of net income		(198,412	)		(138,936	)
Accumulated other comprehensive income		(1,757	)		(2,335	)
Total shareholders’ equity		745,255			636,630
Noncontrolling interests in subsidiaries		3,808			3,795
Total equity		749,063			640,425
Total liabilities and equity	$	2,045,225		$	2,109,407

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

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

Three months ended December 31, 2009	Multifamily		Office		Medical Office			Retail		Industrial		Total
Core net operating income(5)	$	5,877	$	19,352	$	7,492		$	8,101	$	6,507	$	47,329
Add: Net operating income from non-core properties(4)		1,042		3,418		(87	)		—		—		4,373
Total net operating income(4)	$	6,919	$	22,770	$	7,405		$	8,101	$	6,507	$	51,702
Add/(deduct):
Other income													284
Gain from non-disposal activities													11
Interest expense													(17,780	)
Gain (loss) on extinguishment of debt													(1,595	)
Depreciation and amortization													(23,947	)
General and administrative expenses													(3,174	)
Income from operations of properties held for sale													275
Gain on sale of real estate													1,527
Net income													7,303
Less: Net income attributable to noncontrolling interests in subsidiaries													(49	)
Net income attributable to the controlling interests												$	7,254
Three months ended December 31, 2008	Multifamily		Office		Medical Office			Retail		Industrial		Total
Core net operating income(5)	$	5,832	$	18,147	$	7,339		$	6,965	$	6,862	$	45,145
Add: Net operating income from non-core properties(4)		322		1,603		—			—		—		1,925
Total net operating income(4)	$	6,154	$	19,750	$	7,339		$	6,965	$	6,862	$	47,070
Add/(deduct):
Other income													277
Interest expense													(18,854	)
Gain (loss) on extinguishment of debt													2,866
Depreciation and amortization													(23,446	)
General and administrative expenses													(3,297	)
Income from operations of properties held for sale													712
Net income													5,328
Less: Net income attributable to noncontrolling interests in subsidiaries													(53	)
Net income attributable to the controlling interests												$	5,275

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

Twelve months ended December 31, 2009	Multifamily		Office		Medical Office		Retail		Industrial		Total
Core net operating income(5)	$	19,527	$	73,482	$	29,577	$	31,141	$	25,881	$	179,608
Add: Net operating income from non-core properties(4)		7,449		14,077		116		—		1,106		22,748
Total net operating income(4)	$	26,976	$	87,559	$	29,693	$	31,141	$	26,987	$	202,356
Add/(deduct):
Other income												1,205
Gain from non-disposal activities												73
Interest expense												(75,001	)
Gain (loss) on extinguishment of debt												5,336
Depreciation and amortization												(94,042	)
General and administrative expenses												(13,906	)
Income from operations of properties held for sale												1,579
Gain on sale of real estate												13,348
Net income												40,948
Less: Net income attributable to noncontrolling interests in subsidiaries												(203	)
Net income attributable to the controlling interests											$	40,745
Twelve months ended December 31, 2008	Multifamily		Office		Medical Office		Retail		Industrial		Total
Core net operating income(5)	$	18,884	$	74,729	$	29,286	$	31,340	$	27,327	$	181,566
Add: Net operating income from non-core properties(4)		1,538		1,137		131		—		820		3,626
Total net operating income(4)	$	20,422	$	75,866	$	29,417	$	31,340	$	28,147	$	185,192
Add/(deduct):
Other income												1,073
Gain from non-disposal activities												17
Interest expense												(75,041	)
Gain (loss) on extinguishment of debt												(5,583	)
Depreciation and amortization												(85,659	)
General and administrative expenses												(12,110	)
Income from operations of properties held for sale												4,129
Gain on sale of real estate												15,275
Net income												27,293
Less: Net income attributable to noncontrolling interests in subsidiaries												(211	)
Net income attributable to the controlling interests											$	27,082

EX-99.2

Exhibit 99.2

Fourth Quarter 2009

Supplemental Operating and Financial Data

for the Quarter Ended December 31, 2009

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

Washington Real Estate Investment Trust (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.

During 2009, WRIT reduced its total debt by $157 million and improved its debt to market capitalization from 48% at year end 2008 to 43% at year end 2009. WRIT achieved this by repurchasing $110 million of its convertible notes at discounts to par, issuing $167 million of equity and improving the quality of its property portfolio by disposing of $38 million of assets and acquiring a $20 million medical office building. Finally, WRIT executed 1.4 million square feet of commercial lease transactions, only slightly less than the 1.5 million square feet signed in 2008.

From a property operations perspective, WRIT’s portfolio performed well in 2009 considering the economic difficulties facing the metro Washington, DC region. Overall economic occupancy for 2009 was 92.6% compared to 92.2% for 2008, and portfolio net operating income grew 9.3% from 2008 to 2009.

In 2009, WRIT executed 1.4 million square feet of commercial lease transactions with an average lease term of 4.3 years. The average rental rate increase on new and renewal leases in the commercial portfolio was 10.2% on a GAAP basis and 0.6% on a cash basis. Commercial tenant improvement costs were $7.88 per square foot and leasing commissions were $6.07 per square foot for the year.

In the fourth quarter, WRIT used capacity on its line of credit to prepay its $100 million unsecured term loan due in November 2011. WRIT also repurchased $8.1 million of its 3.875% convertible notes at an average discounted price of 96.9% of par for approximately $7.8 million. As of December 31, 2009, approximately $134 million of the original $260 million of convertible notes remain outstanding. Subsequent to quarter end, WRIT repurchased an additional $1.2 million of its convertible notes at an average discounted price of 99.3% of par. Also in the fourth quarter, WRIT disposed of Crossroads Distribution Center, an 85,000 square foot industrial property in Elkridge, Maryland, for $4.4 million and a net book gain of $1.5 million.

WRIT executed 308,000 square feet of commercial lease transactions in the fourth quarter with an average lease term of 5.4 years. The average rental rate increase on new and renewal leases in the commercial portfolio was 4.2% on a GAAP basis and -7.1% on a cash basis. Commercial tenant improvement costs were $9.60 per square foot and leasing commissions were $9.63 per square foot for the quarter.

As of December 31, 2009, WRIT owned a diversified portfolio of 90 properties totaling approximately 11 million square feet of commercial space and 2,540 residential units. These 90 properties consist of 27 office properties, 20 industrial/flex properties, 18 medical office properties, 14 retail centers, 11 multi-family properties and land for development. WRIT shares are publicly traded on the New York Stock Exchange (NYSE:WRE).

2

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.

* Excludes discontinued operations:

Sold Property: Crossroads Distribution Center

Held for Sale Property: Charleston Business Center

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, our third quarter 2009 10-Q and our Form 8-K filed July 10, 2009. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

3

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 Net Operating Income (NOI) Detail for the Year	16-17
Core Portfolio & Overall Economic Occupancy Levels by Sector	18
Tenant Analysis
Commercial Leasing Summary	19-20
10 Largest Tenants - Based on Annualized Base Rent	21
Industry Diversification	22
Lease Expirations as of December 31, 2009	23
Growth and Strategy
2009 Acquisition and Disposition Summary	24
Appendix
Schedule of Properties	25-26
Supplemental Definitions	27

	Twelve Months Ended						Three Months Ended
	12/31/09			12/31/08			12/31/09			09/30/09			06/30/09			03/31/09			12/31/08
OPERATING RESULTS
Real estate rental revenue	$	306,929		$	278,691		$	77,866		$	75,607		$	76,262		$	77,194		$	72,286
Real estate expenses		(104,573	)		(93,499	)		(26,164	)		(25,868	)		(25,357	)		(27,184	)		(25,216	)
		202,356			185,192			51,702			49,739			50,905			50,010			47,070
Real estate depreciation and amortization		(94,042	)		(85,659	)		(23,947	)		(23,643	)		(23,339	)		(23,113	)		(23,446	)
Income from real estate		108,314			99,533			27,755			26,096			27,566			26,897			23,624
Other income		1,205			1,073			284			262			339			320			277
Gain from non-disposal activities		73			17			11			62			—			—			—
Gain (loss) on extinguishment of debt		5,336			(5,583	)		(1,595	)		(133	)		1,219			5,845			2,866
Interest expense		(75,001	)		(75,041	)		(17,780	)		(18,224	)		(19,316	)		(19,681	)		(18,854	)
General and administrative		(13,906	)		(12,110	)		(3,174	)		(3,834	)		(3,716	)		(3,182	)		(3,297	)
Income from continuing operations		26,021			7,889			5,501			4,229			6,092			10,199			4,616
Discontinued operations:
Income from operations of properties held for sale		1,579			4,129			275			227			376			701			712
Gain on sale of real estate		13,348			15,275			1,527			5,147			6,674			—			—
Income from discontinued operations		14,927			19,404			1,802			5,374			7,050			701			712
Net income		40,948			27,293			7,303			9,603			13,142			10,900			5,328
Less: Net income from noncontrolling interests		(203	)		(211	)		(49	)		(53	)		(52	)		(49	)		(53	)
Net income attributable to the controlling interests	$	40,745		$	27,082		$	7,254		$	9,550		$	13,090		$	10,851		$	5,275
Per Share Data
Net income attributable to the controlling interests	$	0.71		$	0.55		$	0.12		$	0.16		$	0.23		$	0.20		$	0.10
Fully diluted weighted average shares outstanding		56,968			49,217			59,833			58,571			56,277			52,915			52,387
Percentage of Revenues:
Real estate expenses		34.1	%		33.5	%		33.6	%		34.2	%		33.2	%		35.2	%		34.9	%
General and administrative		4.5	%		4.3	%		4.1	%		5.1	%		4.9	%		4.1	%		4.6	%
Ratios:
EBITDA / Interest expense		2.6	x		2.3	x		2.7	x		2.5	x		2.5	x		2.7	x		2.5	x
Income from continuing operations attributable to the controlling interest/Total real estate revenue		8.4	%		2.8	%		7.0	%		5.5	%		7.9	%		13.1	%		6.3	%
Net income attributable to the controlling interest/Total real estate revenue		13.3	%		9.7	%		9.3	%		12.6	%		17.2	%		14.1	%		7.3	%

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

5

	December 31, 2009			September 30, 2009			June 30, 2009			March 31, 2009			December 31, 2008
Assets
Land	$	412,137		$	412,137		$	410,828		$	410,833		$	410,833
Income producing property		1,899,378			1,890,505			1,866,520			1,858,293			1,854,008
		2,311,515			2,302,642			2,277,348			2,269,126			2,264,841
Accumulated depreciation and amortization		(474,171	)		(454,407	)		(434,396	)		(414,543	)		(394,902	)
Net income producing property		1,837,344			1,848,235			1,842,952			1,854,583			1,869,939
Development in progress, including land held for development		25,031			24,611			24,140			23,678			23,732
Total real estate held for investment, net		1,862,375			1,872,846			1,867,092			1,878,261			1,893,671
Investment in real estate held for sale, net		3,841			6,277			13,881			26,563			26,734
Cash and cash equivalents		11,203			7,119			58,446			9,685			11,874
Restricted cash		19,170			18,072			21,038			19,343			18,823
Rents and other receivables, net of allowance for doubtful accounts		50,525			49,109			48,777			46,753			44,675
Prepaid expenses and other assets		97,815			104,421			100,628			105,364			112,284
Other assets related to properties sold or held for sale		296			553			950			1,204			1,346
Total assets	$	2,045,225		$	2,058,397		$	2,110,812		$	2,087,173		$	2,109,407
Liabilities and Equity
Notes payable	$	688,912		$	796,064		$	807,128		$	845,364		$	890,679
Mortgage notes payable		405,451			406,377			457,238			458,084			421,286
Lines of credit/short-term note payable		128,000			6,000			15,000			48,000			67,000
Accounts payable and other liabilities		52,649			64,462			70,979			71,571			70,538
Advance rents		11,211			9,792			9,388			9,034			8,926
Tenant security deposits		9,854			10,021			10,013			10,043			10,084
Other liabilities related to properties sold or held for sale		85			112			311			445			469
Total Liabilities		1,296,162			1,292,828			1,370,057			1,442,541			1,468,982
Equity
Shares of beneficial interest, $0.01 par value; 100,000 shares authorized		599			598			584			531			526
Additional paid-in capital		944,825			942,884			901,603			793,441			777,375
Distributions in excess of net income		(198,412	)		(179,639	)		(163,425	)		(151,172	)		(138,936	)
Accumulated other comprehensive income (loss)		(1,757	)		(2,080	)		(1,808	)		(1,963	)		(2,335	)
Total shareholders’ equity		745,255			761,763			736,954			640,837			636,630
Noncontrolling interests in subsidiaries		3,808			3,806			3,801			3,795			3,795
Total equity		749,063			765,569			740,755			644,632			640,425
Total liabilities and equity	$	2,045,225		$	2,058,397		$	2,110,812		$	2,087,173		$	2,109,407
Total Debt / Total Market Capitalization		0.43:1			0.41:1			0.50:1			0.60:1			0.48:1

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

6

	Twelve Months Ended						Three Months Ended
	12/31/2009			12/31/2008			12/31/2009			9/30/2009			6/30/2009			3/31/2009			12/31/2008
Funds from operations(1)
Net income (loss) attributable to the controlling interests	$	40,745		$	27,082		$	7,254		$	9,550		$	13,090		$	10,851		$	5,275
Real estate depreciation and amortization		94,042			85,659			23,947			23,643			23,339			23,113			23,446
Gain from non-disposal activities		(73	)		(17	)		(11	)		(62	)		—			—			—
Discontinued operations:
Gain on sale of real estate		(13,348	)		(15,275	)		(1,527	)		(5,147	)		(6,674	)		—			—
Real estate depreciation and amortization		405			1,239			1			46			169			189			184
Funds From Operations (FFO)	$	121,771		$	98,688		$	29,664		$	28,030		$	29,924		$	34,153		$	28,905
FFO per share - basic	$	2.14		$	2.01		$	0.50		$	0.48		$	0.53		$	0.65		$	0.55
FFO per share - fully diluted	$	2.14		$	2.00		$	0.50		$	0.48		$	0.53		$	0.65		$	0.55
FFO per share - fully diluted, excluding gain (loss) on extinguishment of debt	$	2.04		$	2.12		$	0.52		$	0.48		$	0.51		$	0.53		$	0.50
Funds available for distribution(2)
Non-cash (gain)/loss on extinguishment of debt		(6,336	)		(2,866	)		595			133			(1,219	)		(5,845	)		(2,866	)
Tenant improvements		(12,490	)		(11,350	)		(4,425	)		(2,272	)		(4,727	)		(1,066	)		(2,759	)
External and internal leasing commissions capitalized		(5,845	)		(6,487	)		(1,058	)		(1,543	)		(2,186	)		(1,058	)		(1,184	)
Recurring capital improvements		(6,356	)		(9,792	)		(1,442	)		(1,756	)		(1,984	)		(1,174	)		(2,688	)
Straight-line rent, net		(3,379	)		(2,752	)		(1,527	)		(576	)		(612	)		(664	)		(517	)
Non-cash fair value interest expense		3,595			3,441			773			794			900			1,128			266
Non-real estate depreciation and amortization		4,555			5,039			1,037			1,122			1,177			1,219			1,261
Amortization of lease intangibles, net		(2,587	)		(1,623	)		(777	)		(559	)		(654	)		(597	)		(47	)
Amortization and expensing of restricted share and unit compensation		3,460			2,538			820			1,136			927			577			417
Funds Available for Distribution (FAD)	$	96,388		$	74,836		$	23,660		$	24,509		$	21,546		$	26,673		$	20,788
Total Dividends Paid	$	99,550		$	85,299		$	25,843		$	25,591		$	25,193		$	22,923		$	22,666
Average shares - basic		56,894			49,138			59,735			58,556			56,276			52,914			52,358
Average shares - fully diluted		56,968			49,217			59,833			58,571			56,277			52,915			52,387

⁽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

	Twelve Months Ended						Three Months Ended
	12/31/09			12/31/08			12/31/09			09/30/09			06/30/09			03/31/09			12/31/08
EBITDA(1)
Net income attributable to the controlling interests	$	40,745		$	27,082		$	7,254		$	9,550		$	13,090		$	10,851		$	5,275
Add:
Interest expense		75,001			75,041			17,780			18,224			19,316			19,681			18,854
Real estate depreciation and amortization		94,447			86,898			23,948			23,689			23,508			23,302			23,630
Non-real estate depreciation		1,192			1,175			288			293			306			305			315
Less:
Gain on sale of real estate		(13,348	)		(15,275	)		(1,527	)		(5,147	)		(6,674	)		—			—
Gain from non-disposal activities		(73	)		(17	)		(11	)		(62	)		—			—			—
Other income		(1,205	)		(1,073	)		(284	)		(262	)		(339	)		(320	)		(277	)
EBITDA	$	196,759		$	173,831		$	47,448		$	46,285		$	49,207		$	53,819		$	47,797

⁽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

	December 30, 2009			September 30, 2009			June 30, 2009			March 31, 2009			December 31, 2008
Balances Outstanding
Secured
Conventional fixed rate	$	405,451	(1)	$	406,377	(1)	$	457,238	(1)	$	458,084		$	421,286
Secured total		405,451			406,377			457,238			458,084			421,286
Unsecured
Fixed rate bonds and notes		688,912			796,064			807,128			845,364			890,679
Credit facility		128,000			6,000			15,000			48,000			67,000
Unsecured total		816,912			802,064			822,128			893,364			957,679
Total	$	1,222,363		$	1,208,441		$	1,279,366		$	1,351,448		$	1,378,965
Average Interest Rates
Secured
Conventional fixed rate		5.9	% (1)		5.9	% (1)		6.0	% (1)		6.0	% (1)		6.1	%
Secured total		5.9	%		5.9	%		6.0	%		6.0	%		6.1	%
Unsecured
Fixed rate bonds		5.7	%		5.7	%		5.7	%		5.6	%		5.6	%
Credit facilities		2.8	% (2)		0.7	%		0.7	%		0.9	%		1.5	%
Unsecured total		5.2	%		5.7	%		5.6	%		5.3	%		5.3	%
Average		5.5	%		5.7	%		5.8	%		5.6	%		5.5	%

Note: The current balances outstanding of the secured and unsecured fixed rate bonds and notes are shown net of discounts/premiums in the amount of $7,409,991 and $5,416,014, 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%.

⁽²⁾ On December 1, 2009, we borrowed $100.0 million on a line of credit in order to prepay the $100.0 million term loan. The interest rate on this $100.0 million borrowing on our lines of credit is effectively fixed by an interest rate swap at 3.375% through February 19, 2010. A forward interest swap effectively fixes the interest rate at 2.525% from February 20, 2010 through November 1, 2011.

9

	Future Maturities of Debt
Year	Secured Debt			Unsecured Debt			Credit Facilities		Total Debt		Average Interest Rate
2010	$	4,510		$	—		$	100,000	$	104,510	3.5	%
2011		13,788			284,328			28,000		326,116	5.4	%
2012		21,823			50,000	(1)		—		71,823	5.0	%
2013		107,123			60,000			—		167,123	5.5	%
2014		2,038			100,000			—		102,038	5.3	%
2015		20,595			150,000			—		170,595	5.3	%
2016		82,866			—			—		82,866	5.7	%
2017		103,816			—			—		103,816	7.2	%
2018		2,063			—			—		2,063	5.6	%
Thereafter		54,239	(2)		50,000			—		104,239	6.4	%
Total maturities	$	412,861		$	694,328		$	128,000	$	1,235,189	5.5	%

Weighted average maturity = 4.7 years

⁽¹⁾ The 3.875% convertible notes due 2026 in the aggregate principal amount of $134.3 million are puttable at par in September, 2011. Due to the probability that the convertible notes will be paid off in September, 2011, that date is reflected in the future maturities schedule.

⁽²⁾ The 5.82% mortgage note payble maturing in August, 2033 in the aggregate principal amount of $21.9 million may be repaid without penalty on August 11, 2010. Due to the probability that the mortgage note will not be paid off on August 11, 2010, the date reflected in the future maturities schedule is August, 2033.

10

	December 31, 2009			September 30, 2009			June 30, 2009			March 31, 2009			December 31, 2008
Market Data
Shares Outstanding		59,811			59,724			58,250			53,000			52,434
Market Price per Share	$	27.55		$	28.80		$	22.37		$	17.30		$	28.30
Equity Market Capitalization	$	1,647,793		$	1,720,051		$	1,303,053		$	916,900		$	1,483,882
Total Debt	$	1,222,363		$	1,208,441		$	1,279,366		$	1,351,448		$	1,378,965
Total Market Capitalization	$	2,870,156		$	2,928,492		$	2,582,419		$	2,268,348		$	2,862,847
Total Debt to Market Capitalization		0.43:1			0.41:1			0.50:1			0.60:1			0.48:1
Earnings to Fixed Charges(1)		1.3	x		1.2	x		1.3	x		1.5	x		1.2	x
Debt Service Coverage Ratio(2)		2.5	x		2.4	x		2.4	x		2.6	x		2.4	x
Dividend Data
Total Dividends Paid	$	25,842		$	25,591		$	25,193		$	22,923		$	22,666
Common Dividend per Share	$	0.4325		$	0.4325		$	0.4325		$	0.4325		$	0.4325
Payout Ratio (FFO per share basis)		86.5	%		90.1	%		81.6	%		66.5	%		78.6	%

⁽¹⁾ The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For this purpose, earnings consist of income from continuing operations attributable to the controlling interests plus fixed charges, less capitalized interest. Fixed charges consist of interest expense, including amortized costs of debt issuance, plus interest costs capitalized.

⁽²⁾ Debt service coverage ratio is computed by dividing earnings before interest income and expense, depreciation, amortization and gain on sale of real estate by interest expense and principal amortization.

11

	Fourth Quarter(1)				Year(2)
	NOI Growth		Rental Rate Growth		NOI Growth		Rental Rate Growth
Cash Basis:
Multifamily	1.3	%	-1.9	%	3.4	%	0.2	%
Office Buildings	0.0	%	2.6	%	-2.5	%	3.0	%
Medical Office Buildings	5.4	%	2.6	%	2.2	%	3.1	%
Retail Centers	7.8	%	0.6	%	-1.0	%	1.8	%
Industrial/Flex	-4.9	%	-1.1	%	-4.3	%	1.1	%
Overall Core Portfolio	1.6	%	1.1	%	-1.1	%	2.2	%
	Fourth Quarter(1)				Year(2)
	NOI Growth		Rental Rate Growth		NOI Growth		Rental Rate Growth
GAAP Basis:
Multifamily	0.8	%	-1.8	%	3.4	%	0.3	%
Office Buildings	6.6	%	5.5	%	-1.7	%	3.3	%
Medical Office Buildings	2.1	%	2.4	%	1.0	%	2.7	%
Retail Centers	16.3	%	-0.3	%	-0.6	%	1.0	%
Industrial/Flex	-5.2	%	-3.1	%	-5.3	%	0.0	%
Overall Core Portfolio	4.8	%	1.9	%	-1.1	%	2.0	%

¹ Non-core properties were:

Acquisitions - 2445 M Street and Lansdowne Medical Office Building.

Sold properties - Avondale, Tech 100 Industrial Park, Brandywine Center and Crossroads Distribution Center.

Held for sale property - Charleston Business Center.

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

² Non-core properties were:

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

Sold properties - Avondale, Tech 100 Industrial Park, Brandywine Center and Crossroads Distribution Center.

Held for sale properties - Charleston Business Center.

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

12

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2009		2008		% Change		2009		2008		% Change
Cash Basis:
Multifamily	$	5,675	$	5,604	1.3	%	$	19,507	$	18,871	3.4	%
Office Buildings		17,728		17,730	0.0	%		70,757		72,576	-2.5	%
Medical Office Buildings		7,361		6,982	5.4	%		28,625		28,003	2.2	%
Retail Centers		8,020		7,442	7.8	%		30,661		30,964	-1.0	%
Industrial/Flex		6,444		6,774	-4.9	%		25,791		26,948	-4.3	%
	$	45,228	$	44,532	1.6	%	$	175,341	$	177,362	-1.1	%
GAAP Basis:
Multifamily	$	5,877	$	5,832	0.8	%	$	19,527	$	18,884	3.4	%
Office Buildings		19,352		18,147	6.6	%		73,482		74,729	-1.7	%
Medical Office Buildings		7,492		7,339	2.1	%		29,577		29,286	1.0	%
Retail Centers		8,101		6,965	16.3	%		31,141		31,340	-0.6	%
Industrial/Flex		6,507		6,862	-5.2	%		25,881		27,327	-5.3	%
	$	47,329	$	45,145	4.8	%	$	179,608	$	181,566	-1.1	%

13

	Three Months Ended December 31, 2009
	Multifamily			Office			Medical Office			Retail			Industrial/Flex			Corporate and Other			Total
Real estate rental revenue
Core portfolio	$	9,934		$	29,462		$	11,293		$	10,825		$	9,102		$	—		$	70,616
Non-core - acquired and in development 1		1,930			5,320			—			—			—			—			7,250
Total		11,864			34,782			11,293			10,825			9,102			—			77,866
Real estate expenses
Core portfolio		4,057			10,110			3,801			2,724			2,595			—			23,287
Non-core - acquired and in development 1		888			1,902			87			—			—			—			2,877
Total		4,945			12,012			3,888			2,724			2,595			—			26,164
Net Operating Income (NOI)
Core portfolio		5,877			19,352			7,492			8,101			6,507			—			47,329
Non-core - acquired and in development 1		1,042			3,418			(87	)		—			—			—			4,373
Total	$	6,919		$	22,770		$	7,405		$	8,101		$	6,507		$	—		$	51,702
Core portfolio NOI GAAP basis (from above)	$	5,877		$	19,352		$	7,492		$	8,101		$	6,507		$	—		$	47,329
Straight-line revenue, net for core properties		(10	)		(1,112	)		(33	)		82			(47	)		—			(1,120	)
FAS 141 Min Rent		(192	)		(535	)		(99	)		(166	)		(21	)		—			(1,013	)
Amortization of lease intangibles for core properties		—			23			1			3			5			—			32
Core portfolio NOI, cash basis	$	5,675		$	17,728		$	7,361		$	8,020		$	6,444		$	—		$	45,228
Reconciliation of NOI to Net Income
Total NOI	$	6,919		$	22,770		$	7,405		$	8,101		$	6,507		$	—		$	51,702
Other income		—			—			—			—			—			284			284
Interest expense		(1,731	)		(2,617	)		(1,376	)		(329	)		(239	)		(11,488	)		(17,780	)
Depreciation and amortization		(3,466	)		(11,523	)		(3,695	)		(1,897	)		(3,057	)		(309	)		(23,947	)
General and administrative		—			—			—			—			—			(3,174	)		(3,174	)
Discontinued operations 2		—			—			—			—			275			—			275
Gain from non-disposal activities		—			11			—			—			—			—			11
Gain on sale of real estate		—			—			—			—			—			1,527			1,527
Gain (loss) on extinguishment of debt		—			—			—			—			—			(1,595	)		(1,595	)
Net Income		1,722			8,641			2,334			5,875			3,486			(14,755	)		7,303
Net income attributable to noncontrolling interests		—			—			—			—			—			(49	)		(49	)
Net income attributable to the controlling interests	$	1,722		$	8,641		$	2,334		$	5,875		$	3,486		$	(14,804	)	$	7,254

¹ Non-core acquired and in development properties:

Acquisitions - 2445 M Street and Lansdowne Medical Office Building.

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

² Discontinued operations include: Sold Property - Crossroads Distribution Center; Held for Sale Property - Charleston Business Center.

14

	Three Months Ended December 31, 2008
	Multifamily			Office			Medical Office			Retail			Industrial/Flex			Corporate and Other			Total
Real estate rental revenue
Core portfolio	$	9,856		$	28,509		$	10,950		$	9,740		$	9,425		$	—		$	68,480
Non-core - acquired and in development 1		1,360			2,446			—			—			—			—			3,806
Total		11,216			30,955			10,950			9,740			9,425			—			72,286
Real estate expenses
Core portfolio		4,024			10,362			3,611			2,775			2,563			—			23,335
Non-core - acquired and in development 1		1,038			843			—			—			—			—			1,881
Total		5,062			11,205			3,611			2,775			2,563			—			25,216
Net operating income (NOI)
Core portfolio		5,832			18,147			7,339			6,965			6,862			—			45,145
Non-core - acquired and in development 1		322			1,603			—			—			—			—			1,925
Total	$	6,154		$	19,750		$	7,339		$	6,965		$	6,862		$	—		$	47,070
Core portfolio NOI GAAP basis (from above)	$	5,832		$	18,147		$	7,339		$	6,965		$	6,862		$	—		$	45,145
Straight-line revenue, net for core properties		(4	)		(111	)		(186	)		92			(71	)		—			(280	)
FAS 141 min rent		(224	)		(311	)		(171	)		382			(22	)		—			(346	)
Amortization of lease intangibles for core properties		—			5			—			3			5			—			13
Core portfolio NOI, cash basis	$	5,604		$	17,730		$	6,982		$	7,442		$	6,774		$	—		$	44,532
Reconciliation of NOI to net income
Total NOI	$	6,154		$	19,750		$	7,339		$	6,965		$	6,862		$	—		$	47,070
Other income		—			—			—			—			—			277			277
Interest expense		(2,118	)		(1,433	)		(1,403	)		(335	)		(247	)		(13,318	)		(18,854	)
Depreciation and amortization		(4,504	)		(10,035	)		(3,683	)		(1,996	)		(2,986	)		(242	)		(23,446	)
General and administrative		—			—			—			—			—			(3,297	)		(3,297	)
Discontinued operations 2		353			36			—			—			323			—			712
Gain (loss) on extinguishment of debt		—			—			—			—			—			2,866			2,866
Net income		(115	)		8,318			2,253			4,634			3,952			(13,714	)		5,328
Net income attributable to noncontrolling interests		—			—			—			—			—			(53	)		(53	)
Net income attributable to the controlling interests	$	(115	)	$	8,318		$	2,253		$	4,634		$	3,952		$	(13,767	)	$	5,275

¹ Non-core acquired and in development properties were:

Acquisition - 2445 M Street.

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

² Discontinued operations include: Sold Properties - Crossroads Distribution Center, Brandywine Center, Tech 100 Industrial Park and Avondale; Held for Sale Property - Charleston Business Center.

15

	Twelve Months Ended December 31, 2009
	Multifamily			Office			Medical Office			Retail			Industrial/Flex			Corporate and Other			Total
Real estate rental revenue
Core portfolio	$	32,909		$	114,944		$	44,251		$	41,821		$	35,730		$	—		$	269,655
Non-core - acquired and in development 1		13,561			21,513			660			—			1,540			—			37,274
Total		46,470			136,457			44,911			41,821			37,270			—			306,929
Real estate expenses
Core portfolio		13,382			41,462			14,674			10,680			9,849			—			90,047
Non-core - acquired and in development 1		6,112			7,436			544			—			434			—			14,526
Total		19,494			48,898			15,218			10,680			10,283			—			104,573
Net Operating Income (NOI)
Core portfolio		19,527			73,482			29,577			31,141			25,881			—			179,608
Non-core - acquired and in development 1		7,449			14,077			116			—			1,106			—			22,748
Total	$	26,976		$	87,559		$	29,693		$	31,141		$	26,987		$	—		$	202,356
Core portfolio NOI GAAP basis (from above)	$	19,527		$	73,482		$	29,577		$	31,141		$	25,881		$	—		$	179,608
Straight-line revenue, net for core properties		(20	)		(1,218	)		(387	)		(28	)		(34	)		—			(1,687	)
FAS 141 Min Rent		—			(1,617	)		(566	)		(465	)		(75	)		—			(2,723	)
Amortization of lease intangibles for core properties		—			110			1			13			19			—			143
Core portfolio NOI, cash basis	$	19,507		$	70,757		$	28,625		$	30,661		$	25,791		$	—		$	175,341
Reconciliation of NOI to Net Income
Total NOI	$	26,976		$	87,559		$	29,693		$	31,141		$	26,987		$	—		$	202,356
Other income		—			—			—			—			—			1,205			1,205
Interest expense		(8,466	)		(10,423	)		(5,503	)		(1,312	)		(963	)		(48,334	)		(75,001	)
Depreciation and amortization		(13,921	)		(45,195	)		(14,814	)		(7,416	)		(11,596	)		(1,100	)		(94,042	)
General and administrative		—			—			—			—			—			(13,906	)		(13,906	)
Discontinued operations 2		392			85			—			—			1,102			—			1,579
Gain from non-disposal activities		—			71			2			—			—			—			73
Gain on sale of real estate		—			—			—			—			—			13,348			13,348
Gain (loss) on extinguishment of debt		—			—			—			—			—			5,336			5,336
Net Income		4,981			32,097			9,378			22,413			15,530			(43,451	)		40,948
Net income attributable to noncontrolling interests		—			—			—			—			—			(203	)		(203	)
Net income attributable to the controlling interests	$	4,981		$	32,097		$	9,378		$	22,413		$	15,530		$	(43,654	)	$	40,745

¹ Non-core acquired and in development properties:

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

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

² Discontinued operations include: Sold Properties - Crossroads Distribution Center, Brandywine Center, Tech 100 Industrial Park, and Avondale; Held for Sale Property - Charleston Business Center.

16

	Twelve Months Ended December 31, 2008
	Multifamily			Office			Medical Office			Retail			Industrial/Flex			Corporate and Other			Total
Real estate rental revenue
Core portfolio	$	32,199		$	115,685		$	43,210		$	40,987		$	36,700		$	—		$	268,781
Non-core - acquired and in development 1		5,659			2,608			384			—			1,259			—			9,910
Total		37,858			118,293			43,594			40,987			37,959			—			278,691
Real estate expenses
Core portfolio		13,315			40,956			13,924			9,647			9,373			—			87,215
Non-core - acquired and in development 1		4,121			1,471			253			—			439			—			6,284
Total		17,436			42,427			14,177			9,647			9,812			—			93,499
Net operating income (NOI)
Core portfolio		18,884			74,729			29,286			31,340			27,327			—			181,566
Non-core - acquired and in development 1		1,538			1,137			131			—			820			—			3,626
Total	$	20,422		$	75,866		$	29,417		$	31,340		$	28,147		$	—		$	185,192
Core portfolio NOI GAAP basis (from above)	$	18,884		$	74,729		$	29,286		$	31,340		$	27,327		$	—		$	181,566
Straight-line revenue, net for core properties		(15	)		(784	)		(718	)		(405	)		(423	)		—			(2,345	)
FAS 141 min rent		—			(1,379	)		(565	)		16			25			—			(1,903	)
Amortization of lease intangibles for core properties		2			10			—			13			19			—			44
Core portfolio NOI, cash basis	$	18,871		$	72,576		$	28,003		$	30,964		$	26,948		$	—		$	177,362
Reconciliation of NOI to net income
Total NOI	$	20,422		$	75,866		$	29,417		$	31,340		$	28,147		$	—		$	185,192
Other income		—			—			—			—			—			1,073			1,073
Interest expense		(6,514	)		(3,987	)		(5,622	)		(1,339	)		(983	)		(56,596	)		(75,041	)
Depreciation and amortization		(13,431	)		(37,731	)		(14,441	)		(7,498	)		(11,770	)		(788	)		(85,659	)
General and administrative		—			—			—			—			—			(12,110	)		(12,110	)
Discontinued operations 2		861			192			—			—			3,076			—			4,129
Gain from non-disposal activities		—			—			—			—			—			17			17
Gain on sale of real estate																	15,275			15,275
Gain (loss) on extinguishment of debt		—			—			—			—			—			(5,583	)		(5,583	)
Net income		1,338			34,340			9,354			22,503			18,470			(58,712	)		27,293
Net income attributable to noncontrolling interests		—			—			—			—			—			(211	)		(211	)
Net income attributable to the controlling interests	$	1,338		$	34,340		$	9,354		$	22,503		$	18,470		$	(58,923	)	$	27,082

¹ Non-core acquired and in development properties were:

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: Sold Properties - Crossroads Distribution Center, Brandywine Center, Tech 100 Industrial Park, Avondale, Sullyfield Center and The Earhart Building; Held for Sale Property - Charleston Business Center.

17

GAAP Basis

	Core Portfolio				All Properties
Sector	4th QTR 2009		4th QTR 2008		4th QTR 2009		4th QTR 2008
Multifamily	94.5	%	92.8	%	94.1	%	87.6	%
Office Buildings	92.0	%	93.3	%	92.6	%	93.2	%
Medical Office Buildings	95.9	%	95.2	%	92.7	%	95.2	%
Retail Centers	94.4	%	94.8	%	94.4	%	94.8	%
Industrial / Flex	87.1	%	93.0	%	87.3	%	92.5	%
Overall Portfolio	92.7	%	93.7	%	92.4	%	92.6	%

18

	4th Quarter 2009						Year to Date
Gross Leasing Square Footage
Office Buildings		133,548						683,793
Medical Office Buildings		34,931						139,602
Retail Centers		95,037						145,883
Industrial/Flex		44,503						453,375
Total		308,019						1,422,653
Weighted Average Term (yrs)
Office Buildings		5.2						4.6
Medical Office Buildings		7.3						5.2
Retail Centers		5.2						4.6
Industrial/Flex		4.9						3.3
Total		5.4						4.3
	GAAP			CASH			GAAP			CASH
Rental Rate Increases:
Rate on expiring leases
Office Buildings	$	29.87		$	31.85		$	31.14		$	32.37
Medical Office Buildings		30.38			31.32			31.77			32.90
Retail Centers		13.69			14.12			17.67			18.40
Industrial/Flex		9.33			9.62			8.53			9.00
Total	$	21.97		$	23.11		$	22.61		$	23.54
Rate on new and renewal leases
Office Buildings	$	29.90		$	28.19		$	34.73		$	33.05
Medical Office Buildings		38.88			35.42			36.80			34.48
Retail Centers		13.67			13.00			17.60			16.74
Industrial/Flex		9.02			8.41			8.80			8.49
Total	$	22.90		$	21.46		$	24.92		$	23.69
Percentage Increase
Office Buildings		0.11	%		-11.48	%		11.55	%		2.09	%
Medical Office Buildings		27.99	%		13.07	%		15.85	%		4.79	%
Retail Centers		-0.15	%		-7.93	%		-0.43	%		-9.02	%
Industrial/Flex		-3.29	%		-12.61	%		3.24	%		-5.64	%
Total		4.22	%		-7.11	%		10.18	%		0.63	%

19

	4th Quarter 2009				Year to Date
	Total Dollars		Dollars per Square Foot		Total Dollars		Dollars per Square Foot
Tenant Improvements
Office Buildings	$	1,430,285	$	10.71	$	8,086,595	$	11.83
Medical Office Buildings		750,289		21.48		2,000,373		14.33
Retail Centers		711,150		7.48		716,150		4.91
Industrial/Flex		64,692		1.45		411,135		0.91
Subtotal	$	2,956,416	$	9.60	$	11,214,253	$	7.88
	Total Dollars		Dollars per Square Foot		Total Dollars		Dollars per Square Foot
Leasing Costs
Office Buildings	$	1,713,899	$	12.83	$	5,686,887	$	8.32
Medical Office Buildings		715,311		20.48		1,389,291		9.95
Retail Centers		416,159		4.38		608,464		4.17
Industrial/Flex		119,606		2.69		953,195		2.10
Subtotal	$	2,964,975	$	9.63	$	8,637,837	$	6.07
	Total Dollars		Dollars per Square Foot		Total Dollars		Dollars per Square Foot
Tenant Improvements and Leasing Costs
Office Buildings	$	3,144,184	$	23.54	$	13,773,482	$	20.14
Medical Office Buildings		1,465,600		41.96		3,389,664		24.28
Retail Centers		1,127,309		11.86		1,324,614		9.08
Industrial/Flex		184,298		4.14		1,364,330		3.01
Total	$	5,921,391	$	19.22	$	19,852,090	$	13.95

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Tenant	Number of Buildings	Weighted Average Remaining Lease Term in Months	Percentage of Aggregate Portfolio Annualized Rent		Aggregate Rentable Square Feet	Percentage of Aggregate Occupied Square Feet
World Bank	1	66	4.41	%	210,354	2.22	%
Advisory Board Company	1	113	2.75	%	180,925	1.91	%
General Services Administration	8	18	2.12	%	262,698	2.77	%
INOVA Health System	7	51	1.92	%	114,208	1.21	%
IBM Corporation	2	110	1.92	%	134,598	1.42	%
Patton Boggs LLP	1	88	1.87	%	110,566	1.17	%
Sunrise Assisted Living, Inc.	1	45	1.57	%	115,289	1.22	%
Lafarge North America, Inc	1	7	1.31	%	80,610	0.85	%
URS Corporation	1	48	1.21	%	84,970	0.90	%
Children’s Hospital	3	59	1.02	%	69,230	0.73	%
Total/Weighted Average		61	20.10	%	1,363,448	14.40	%

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Industry Classification (NAICS)	Annualized Base Rental Revenue		Percentage of Aggregate Annualized Rent		Aggregate Rentable Square Feet	Percentage of Aggregate Square Feet
Professional, Scientific and Technical Services	$	58,465,524	27.13	%	2,220,576	23.37	%
Ambulatory Health Care Services		40,319,407	18.70	%	1,304,523	13.74	%
Credit Intermediation and Related Activities		15,187,472	7.04	%	380,543	4.01	%
Executive, Legislative & Other General Government		9,177,221	4.26	%	444,583	4.68	%
Educational Services		6,766,662	3.14	%	250,671	2.64	%
Religious, Grantmaking, Civic, Professional		6,539,899	3.04	%	203,329	2.14	%
Food Services and Drinking Places		5,735,577	2.66	%	214,671	2.26	%
Administrative and Support Services		5,044,315	2.34	%	322,261	3.39	%
Food and Beverage Stores		4,131,651	1.92	%	255,416	2.69	%
Nursing and Residential Care Facilities		3,931,270	1.83	%	145,010	1.53	%
Broadcasting (except Internet)		3,513,648	1.63	%	104,459	1.10	%
Miscellaneous Store Retailers		3,451,386	1.60	%	240,220	2.53	%
Furniture and Home Furnishing Stores		3,371,369	1.57	%	215,942	2.27	%
Nonmetallic Mineral Product Manufacturing		3,200,247	1.49	%	119,474	1.26	%
Merchant Wholesalers-Durable Goods		2,943,430	1.37	%	293,226	3.09	%
Personal and Laundry Services		2,804,802	1.30	%	101,829	1.07	%
Clothing and Clothing Accessories Stores		2,262,857	1.05	%	140,834	1.48	%
Health and Personal Care Services		2,190,686	1.02	%	63,149	0.67	%
Specialty Trade Contractors		2,114,408	0.98	%	225,789	2.38	%
Hospitals		2,050,447	0.95	%	64,910	0.68	%
Sporting Goods/Books/Hobby/Music Stores		1,989,755	0.92	%	144,171	1.52	%
Printing and Related Support Activities		1,972,059	0.92	%	92,128	0.97	%
Merchant Wholesalers-Non Durable Goods		1,971,329	0.92	%	212,101	2.23	%
Miscellaneous Manufacturing		1,920,393	0.89	%	181,959	1.92	%
Real Estate		1,871,387	0.87	%	72,053	0.76	%
Construction of Buildings		1,786,761	0.83	%	109,794	1.16	%
General Merchandise Stores		1,673,509	0.78	%	222,430	2.34	%
Computer & Electronic Product Manufacturing		1,404,026	0.65	%	78,832	0.83	%
Amusement, Gambling and Recreation industries		1,351,336	0.63	%	107,108	1.13	%
Insurance Carriers and Related Activities		1,329,725	0.62	%	54,026	0.57	%
Telecommunications		1,180,350	0.55	%	35,231	0.37	%
Other		13,803,382	6.40	%	876,287	9.22	%
Total	$	215,456,290	100.00	%	9,497,535	100.00	%

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Year	Number of Leases	Rentable Square Feet	Percent of Rentable Square Feet		Annualized Rent *		Average Rental Rate		Percent of Annualized Rent *
Office:
2010	127	560,911	14.95	%	$	16,440,008	$	29.31	12.80	%
2011	115	517,068	13.79	%		16,912,727		32.71	13.17	%
2012	89	414,601	11.05	%		12,757,871		30.77	9.94	%
2013	63	456,908	12.18	%		14,273,322		31.24	11.12	%
2014	69	562,415	14.99	%		18,365,497		32.65	14.30	%
2015 and thereafter	135	1,238,978	33.04	%		49,670,427		40.09	38.67	%
	598	3,750,881	100.00	%	$	128,419,852	$	34.24	100.00	%
Medical Office:
2010	60	182,641	15.28	%	$	6,010,260	$	32.91	13.44	%
2011	69	216,818	18.14	%		7,444,653		34.34	16.65	%
2012	44	137,069	11.47	%		5,085,428		37.10	11.38	%
2013	46	138,769	11.61	%		4,844,415		34.91	10.84	%
2014	38	119,275	9.98	%		4,682,101		39.25	10.47	%
2015 and thereafter	100	401,018	33.53	%		16,639,203		41.49	37.22	%
	357	1,195,590	100.00	%	$	44,706,060	$	37.39	100.00	%
Retail:
2010	55	242,191	13.51	%	$	4,693,740	$	19.38	13.29	%
2011	42	201,578	11.24	%		3,557,331		17.65	10.07	%
2012	41	140,073	7.81	%		3,226,532		23.03	9.13	%
2013	37	286,002	15.95	%		4,347,732		15.20	12.31	%
2014	19	108,247	6.04	%		2,469,607		22.81	6.99	%
2015 and thereafter	83	814,933	45.45	%		17,031,800		20.90	48.21	%
	277	1,793,024	100.00	%	$	35,326,742	$	19.70	100.00	%
Industrial/Flex:
2010	55	564,309	20.14	%	$	6,264,495	$	11.10	19.09	%
2011	66	553,614	19.76	%		5,637,367		10.18	17.18	%
2012	38	495,356	17.68	%		5,617,674		11.34	17.12	%
2013	29	417,951	14.91	%		4,904,205		11.73	14.95	%
2014	17	283,557	10.12	%		3,418,137		12.05	10.42	%
2015 and thereafter	33	487,539	17.39	%		6,966,074		14.29	21.23	%
	238	2,802,326	100.00	%	$	32,807,952	$	11.71	100.00	%
Total:
2010	297	1,550,052	16.25	%	$	33,408,503	$	21.55	13.85	%
2011	292	1,489,078	15.61	%		33,552,078		22.53	13.91	%
2012	212	1,187,099	12.44	%		26,687,505		22.48	11.06	%
2013	175	1,299,630	13.62	%		28,369,674		21.83	11.76	%
2014	143	1,073,494	11.24	%		28,935,342		26.95	11.99	%
2015 and thereafter	351	2,942,468	30.84	%		90,307,504		30.69	37.43	%
	1,470	9,541,821	100.00	%	$	241,260,606	$	25.28	100.00	%

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

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Acquisition Summary

		Acquisition Date	Square Feet	Leased Percentage at Acquisition		December 31, 2009 Leased Percentage			Investment
Lansdowne Medical Office Building	Leesburg, VA	August 13, 2009	87,400	0	%		0	%	$	19,900
Disposition Summary
		Disposition Date	Property Type	Square Feet		Sale Price			GAAP Gain
Avondale Apartments (237 units)	Laurel, MD	May 13, 2009	Multifamily	170,000		$	19,750		$	6,700
Tech 100	Elkridge, MD	July 23, 2009	Industrial	166,000		$	10,540		$	4,100
Brandywine Center	Rockville, MD	July 31, 2009	Office	35,000		$	3,300		$	1,000
Crossroads Distribution Center	Elkridge, MD	November 13, 2009	Industrial	85,000		$	4,375		$	1,500
			Total	456,000		$	37,965		$	13,300

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PROPERTIES	LOCATION	YEAR ACQUIRED	YEAR CONSTRUCTED	NET RENTABLE SQUARE FEET*
Office Buildings
1901 Pennsylvania Avenue	Washington, DC	1977	1960	97,000
51 Monroe Street	Rockville, MD	1979	1975	210,000
515 King Street	Alexandria, VA	1992	1966	76,000
The Lexington Building	Rockville, MD	1993	1970	46,000
The Saratoga Building	Rockville, MD	1993	1977	58,000
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				4,176,000
Medical Office Buildings
Woodburn Medical Park I	Annandale, VA	1998	1984	71,000
Woodburn Medical Park II	Annandale, VA	1998	1988	96,000
Prosperity Medical Center I	Merrifield, VA	2003	2000	92,000
Prosperity Medical Center II	Merrifield, VA	2003	2001	88,000
Prosperity Medical Center III	Merrifield, VA	2003	2002	75,000
Shady Grove Medical Village II	Rockville, MD	2004	1999	66,000
8301 Arlington Boulevard	Fairfax, VA	2004	1965	49,000
Alexandria Professional Center	Alexandria, VA	2006	1968	113,000
9707 Medical Center Drive	Rockville, MD	2006	1994	38,000
15001 Shady Grove Road	Rockville, MD	2006	1999	51,000
Plumtree Medical Center	Bel Air, MD	2006	1991	33,000
15005 Shady Grove Road	Rockville, MD	2006	2002	52,000
2440 M Street	Washington, DC	2007	1986/2006	110,000
Woodholme Medical Office Building	Pikesville, MD	2007	1996	125,000
Ashburn Office Park	Ashburn, VA	2007	1998/2000/2002	75,000
CentreMed I & II	Centreville, VA	2007	1998	52,000
Sterling Medical Office Building	Sterling, VA	2008	1986/2000	36,000
Lansdowne Medical Office Building	Leesburg, VA	2009	2009	87,000
Subtotal				1,309,000
Retail Centers
Takoma Park	Takoma Park, MD	1963	1962	51,000
Westminster	Westminster, MD	1972	1969	151,000
Concord Centre	Springfield, VA	1973	1960	76,000
Wheaton Park	Wheaton, MD	1977	1967	72,000
Bradlee	Alexandria, VA	1984	1955	168,000
Chevy Chase Metro Plaza	Washington, DC	1985	1975	49,000
Montgomery Village Center	Gaithersburg, MD	1992	1969	198,000
Shoppes of Foxchase (1)	Alexandria, VA	1994	1960	134,000
Frederick County Square	Frederick, MD	1995	1973	227,000
800 S. Washington Street	Alexandria, VA	1998/2003	1955/1959	44,000
Centre at Hagerstown	Hagerstown, MD	2002	2000	332,000
Frederick Crossing	Frederick, MD	2005	1999/2003	295,000
Randolph Shopping Center	Rockville, MD	2006	1972	82,000
Montrose Shopping Center	Rockville, MD	2006	1970	143,000
Subtotal				2,022,000

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

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PROPERTIES	LOCATION	YEAR ACQUIRED	YEAR CONSTRUCTED	NET RENTABLE SQUARE FEET*
Multifamily Buildings * / # units
3801 Connecticut Avenue / 308	Washington, DC	1963	1951	179,000
Roosevelt Towers / 191	Falls Church, VA	1965	1964	170,000
Country Club Towers / 227	Arlington, VA	1969	1965	163,000
Park Adams / 200	Arlington, VA	1969	1959	173,000
Munson Hill Towers / 279	Falls Church, VA	1970	1963	259,000
The Ashby at McLean / 256	McLean, VA	1996	1982	252,000
Walker House Apartments / 212	Gaithersburg, MD	1996	1971/2003 (2)	159,000
Bethesda Hill Apartments / 195	Bethesda, MD	1997	1986	226,000
Bennett Park / 224	Arlington, VA	2007	2007	268,000
Clayborne / 74	Alexandria, VA	2008	2008	87,000
Kenmore Apartments / 374	Washington, DC	2008	1948	270,000
Subtotal (2,540 units)				2,206,000
Industrial Distribution / Flex Properties
Fullerton Business Center	Springfield, VA	1985	1980	104,000
Charleston Business Center	Rockville, MD	1993	1973	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				3,344,000
TOTAL				13,057,000

* Multifamily buildings are presented in gross square feet.

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

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

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

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, leasing incentives and leasing costs, that are capitalized and amortized and are necessary to maintain our properties and revenue stream, non-cash gain/loss from extinguishment of debt and straight line rents, then adding non-real estate depreciation and amortization, non-cash fair value interest expense, adding or subtracting amortization of lease intangibles and amortization of restricted share compensation, 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.

27