Washington Real Estate Investment Trust
	First Quarter 2014
	Supplemental Operating and Financial Data
	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

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Company Background and Highlights

First Quarter 2014

Washington Real Estate Investment Trust ("Washington REIT") is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington metro region. Washington REIT has a diversified portfolio with investments in office, retail, and multifamily properties and land for development.

In the first quarter, Washington REIT acquired Yale West, a 216 unit Class A apartment building located in the Mount Vernon Triangle neighborhood of Washington, DC for $73 million. Built in 2011, Yale West is a twelve-story building with a three-level parking garage, located at 443 New York Avenue, NW in Washington's East End. The property is two blocks from the Mount Vernon Square - Convention Center Metro Station (Green and Yellow Lines) and has accessibility to the amenity rich East End, Central Business District and Capitol Hill workplaces. Washington REIT assumed a $48.2 million 5.55% mortgage maturing on January 1, 2052 with optional prepayment ability beginning January 1, 2015. The balance of the purchase price was funded with available proceeds from the recent Medical Office Portfolio sale.

Washington REIT also acquired The Army Navy Club Building, a 108,000 square foot Class A office building located at 1627 Eye Street, NW in Washington's Central Business District for $79 million. Originally constructed in 1912, The Army Navy Club building is a twelve-story building with a three-level parking garage located on the corner of Farragut Square. The property was completely redeveloped and expanded in 1987 when four additional floors were added to the property. The Army Navy Club is one block from the Farragut West (Blue and Orange Lines) and Farragut North (Red Line) Metro Stations. Washington REIT assumed a $52.6 million 3.45% mortgage maturing on May 1, 2017 with optional prepayment ability beginning May 1, 2014. The balance of the purchase price was funded with available proceeds from the recent Medical Office Portfolio sale.

Subsequent to quarter end, Washington REIT announced the appointment of Mr. Thomas Q. Bakke as the company's Executive Vice President and Chief Operating Officer. Mr. Bakke joins Washington REIT with more than 25 years of real estate experience and will be responsible for overseeing all aspects of Washington REIT's real estate operations, including asset management, marketing, leasing, property management and development.

Washington REIT signed commercial leases totaling 159,978 square feet, including 72,770 square feet of new leases and 87,208 square feet of renewal leases. New leases had an average rental rate increase of 16.6% over expiring lease rates on a GAAP basis and an average lease term of 8.2 years. Commercial tenant improvement costs were $27.41 per square foot and leasing commissions and incentives were $21.93 per square foot for new leases. Renewal leases had an average rental rate increase of 13.1% over expiring lease rates on a GAAP basis and an average lease term of 5.8 years. Commercial tenant improvement costs were $10.28 per square foot and leasing commissions and incentives were $15.49 per square foot for renewal leases.

As of March 31, 2014, Washington REIT owned a diversified portfolio of 53 properties totaling approximately 7 million square feet of commercial space and 2,890 residential units, and land held for development. These 53 properties consist of 24 office properties, 16 retail centers and 13 multifamily properties. Washington REIT shares are publicly traded on the New York Stock Exchange (NYSE: WRE).

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Company Background and Highlights

First Quarter 2014

Net Operating Income Contribution by Sector - First Quarter 2014

Note: Excludes held for sale and sold properties: Medical Office Portfolio (see Supplemental Definitions on page 31 for list of properties included in the Medical Office Portfolio)

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 potential for federal government budget reductions, changes in general and local economic and real estate market conditions, the timing and pricing of lease transactions, the availability and cost of capital, fluctuations in interest rates, tenants' financial conditions, levels of competition, the effect of government regulation, the impact of newly adopted accounting principles, and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2013 Form 10-K. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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Supplemental Financial and Operating Data Table of Contents
March 31, 2014
Schedule		Page
Key Financial Data
	Consolidated Statements of Operations	4
	Medical Office Portfolio	5
	Consolidated Balance Sheets	6
	Funds From Operations	7
	Funds Available for Distribution	8
	Adjusted Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)	9
Capital Analysis
	Long-Term Debt Analysis	10
	Long-Term Debt Maturities	11
	Debt Covenant Compliance	12
	Capital Analysis	13
Portfolio Analysis
	Same-Store Portfolio Net Operating Income (NOI) Growth & Rental Rate Growth	14
	Same-Store Portfolio Net Operating Income (NOI) Detail for the Quarter	15- 16
	Net Operating Income (NOI) by Region	17
	Same-Store Portfolio & Overall Physical Occupancy Levels by Sector	18
	Same-Store Portfolio & Overall Economic Occupancy Levels by Sector	19
Growth and Strategy
	Acquisition and Disposition Summary	20
	Development/Re-Development Summary	21
Tenant Analysis
	Commercial Leasing Summary - New Leases	22
	Commercial Leasing Summary - Renewal Leases	23
	10 Largest Tenants - Based on Annualized Base Rent	24
	Industry Diversification	25
	Lease expirations	27
Appendix
	Schedule of Properties	28- 30
	Supplemental Definitions	31

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Consolidated Statements of Operations (In thousands, except per share data) (Unaudited)

	Three Months Ended
OPERATING RESULTS	3/31/2014				12/31/2013				9/30/2013				6/30/2013				3/31/2013
Real estate rental revenue	$	68,611			$	66,721			$	65,828			$	65,915			$	64,560
Real estate expenses	(26,342		)		(23,826		)		(23,243		)		(23,670		)		(22,554		)
	42,269				42,895				42,585				42,245				42,006
Real estate depreciation and amortization	(22,753		)		(22,412		)		(21,168		)		(21,037		)		(21,123		)
Income from real estate	19,516				20,483				21,417				21,208				20,883
Interest expense	(14,530		)		(15,629		)		(15,930		)		(15,824		)		(16,190		)
Other income	223				221				220				246				239
Acquisition costs	(3,045		)		(817		)		(148		)		(87		)		(213		)
Gain (loss) on extinguishment of debt	—				(2,737		)		—				—				—
General and administrative	(4,429		)		(5,818		)		(3,850		)		(4,005		)		(3,862		)
(Loss) income from continuing operations	(2,265		)		(4,297		)		1,709				1,538				857
Discontinued operations:
Income from operations of properties sold or held for sale	546				4,256				4,131				3,725				3,283
Gain on sale of real estate	106,273				18,949				—				—				3,195
Income from discontinued operations	106,819				23,205				4,131				3,725				6,478
Net income	104,554				18,908				5,840				5,263				7,335
Less: Net income from noncontrolling interests	—				—				—				—				—
Net income attributable to the controlling interests	$	104,554			$	18,908			$	5,840			$	5,263			$	7,335
Per Share Data:
Net income	$	1.56			$	0.28			$	0.09			$	0.08			$	0.11
Fully diluted weighted average shares outstanding	66,701				66,591				66,561				66,556				66,519
Percentage of Revenues:
Real estate expenses	38.4		%		35.7		%		35.3		%		35.9		%		34.9		%
General and administrative	6.5		%		8.7		%		5.8		%		6.1		%		6.0		%
Ratios:
Adjusted EBITDA / Interest expense	2.5x				2.6x				2.9x				2.9x				2.8x
Income from continuing operations/Total real estate revenue	(3.3		)%		(6.4		)%		2.6		%		2.3		%		1.3		%
Net income /Total real estate revenue	152.4		%		28.3		%		8.9		%		8.0		%		11.4		%
Note: Certain prior quarter amounts have been reclassified to conform to the current quarter presentation.

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Medical Office Portfolio (In thousands) (Unaudited)

	Three Months Ended
Income from Medical Office Portfolio (1):	3/31/2014				12/31/2013				9/30/2013				6/30/2013				3/31/2013
Real estate rental revenue	$	892			$	8,651			$	12,073			$	12,357			$	12,364
Real estate expenses	(346		)		(4,184		)		(4,398		)		(3,759		)		(4,537		)
	546				4,467				7,675				8,598				7,827
Real estate depreciation and amortization	—				—				(3,215		)		(4,545		)		(4,401		)
Interest expense	—				(211		)		(329		)		(328		)		(328		)
Real estate impairment	—				—				—				—				—
Income from operations of Medical Office Portfolio (1)	546				4,256				4,131				3,725				3,098
Income from operations of sold properties (2)	—				—				—				—				185
Gain on sale of real estate	106,273				18,949				—				—				3,195
Income from discontinued operations	$	106,819			$	23,205			$	4,131			$	3,725			$	6,478
	As of
Investment in Medical Office Portfolio (1):	3/31/2014				12/31/2013				9/30/2013				6/30/2013				3/31/2013
Office	$	—			$	—			$	55,049			$	54,902			$	54,794
Medical Office	—				125,967				409,486				409,040				408,107
Total	—				125,967				464,535				463,942				462,901
Less accumulated depreciation	—				(46,066		)		(118,378		)		(115,796		)		(111,601		)
Investment in real estate sold or held for sale, net	$	—			$	79,901			$	346,157			$	348,146			$	351,300
Mortgage notes payable secured by Medical Office Portfolio (1)	$	—			$	—			$	23,467			$	23,627			$	23,785

(1) Medical Office Portfolio:

Office - Woodholme Center and 6565 Arlington Boulevard

Medical Office - 2440 M Street, 15001 Shady Grove Road, 15505 Shady Grove Road, 19500 at Riverside Park (formerly Lansdowne Medical Office Building), 9707 Medical Center Drive, CentreMed I and II, 8301 Arlington Boulevard, Sterling Medical Office Building, Shady Grove Medical Village II, Alexandria Professional Center, Ashburn Farm Office Park I, II and III, Woodholme Medical Office Building, Woodburn Medical Park I and II, and Prosperity Medical Center I, II and III

Washington REIT entered into four separate contracts with a single buyer to sell all of the held for sale properties (collectively, the "Medical Office Portfolio") for a combined sales price of $500.8 million. The first two separate sale transactions of its medical office portfolio closed on November 21 and November 22, 2013 for an aggregate sales price of $307.2 million. The second two sales transactions closed on January 21, 2014 for an aggregate sales price of $193.6 million.

(2) Non Medical Office Portfolio Sold properties:

Office - The Atrium Building (sold on March 19, 2013)

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Consolidated Balance Sheets (In thousands) (Unaudited)

	3/31/2014				12/31/2013				9/30/2013				6/30/2013				3/31/2013
Assets
Land	$	472,056			$	426,575			$	418,008			$	418,008			$	418,008
Income producing property	1,784,850				1,675,652				1,624,617				1,608,939				1,595,083
	2,256,906				2,102,227				2,042,625				2,026,947				2,013,091
Accumulated depreciation and amortization	(581,644		)		(565,342		)		(548,549		)		(531,197		)		(514,173		)
Net income producing property	1,675,262				1,536,885				1,494,076				1,495,750				1,498,918
Development in progress, including land held for development	68,963				61,315				55,580				51,397				49,041
Total real estate held for investment, net	1,744,225				1,598,200				1,549,656				1,547,147				1,547,959
Investment in real estate held for sale, net	—				79,901				346,157				348,146				351,300
Cash and cash equivalents	62,080				130,343				7,923				5,919				16,743
Restricted cash	107,039				9,189				7,547				10,254				9,560
Rents and other receivables, net of allowance for doubtful accounts	52,736				48,756				48,619				49,436				48,988
Prepaid expenses and other assets	109,092				105,004				110,116				101,829				102,773
Other assets related to properties sold or held for sale	—				4,100				18,337				18,011				18,797
Total assets	$	2,075,172			$	1,975,493			$	2,088,355			$	2,080,742			$	2,096,120
Liabilities
Notes payable	$	746,830			$	846,703			$	846,576			$	846,450			$	846,323
Mortgage notes payable	404,359				294,671				290,838				288,584				288,611
Lines of credit	—				—				85,000				75,000				70,000
Accounts payable and other liabilities	56,804				51,742				57,116				48,836				53,472
Advance rents	14,688				13,529				11,749				12,382				12,653
Tenant security deposits	8,402				7,869				7,639				7,559				7,539
Liabilities related to properties sold or held for sale	—				1,533				31,275				30,703				32,696
Total liabilities	1,231,083				1,216,047				1,330,193				1,309,514				1,311,294
Equity
Preferred shares; $0.01 par value; 10,000 shares authorized	—				—				—				—				—
Shares of beneficial interest, $0.01 par value; 100,000 shares authorized	666				665				665				665				665
Additional paid-in capital	1,151,353				1,151,174				1,148,837				1,147,710				1,146,683
Distributions in excess of net income	(312,417		)		(396,880		)		(395,816		)		(381,623		)		(366,821		)
Total shareholders' equity	839,602				754,959				753,686				766,752				780,527
Noncontrolling interests in subsidiaries	4,487				4,487				4,476				4,476				4,299
Total equity	844,089				759,446				758,162				771,228				784,826
Total liabilities and equity	$	2,075,172			$	1,975,493			$	2,088,355			$	2,080,742			$	2,096,120
Total Debt / Total Market Capitalization	0.42		:1		0.42		:1		0.43		:1		0.41		:1		0.40		:1

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Funds from Operations (In thousands, except per share data) (Unaudited)

	Three Months Ended
	3/31/2014				12/31/2013				9/30/2013				6/30/2013				3/31/2013
Funds from operations(1)
Net income	$	104,554			$	18,908			$	5,840			$	5,263			$	7,335
Real estate depreciation and amortization	22,753				22,412				21,168				21,037				21,123
Discontinued operations:
Gain on sale of real estate	(106,273		)		(18,949		)		—				—				(3,195		)
Real estate depreciation and amortization	—				—				3,215				4,545				4,401
Funds from operations (FFO)	21,034				22,371				30,223				30,845				29,664
Loss (gain) on extinguishment of debt	—				2,737				—				—				—
Real estate impairment	—				92				—				—				—
Severance expense	48				2,157				250				266				(183		)
Acquisition costs	3,045				817				148				87				213
Core FFO (1)	$	24,127			$	28,174			$	30,621			$	31,198			$	29,694
Allocation to participating securities(2)	(295		)		(44		)		(109		)		(142		)		(120		)
FFO per share - basic	$	0.31			$	0.34			$	0.45			$	0.46			$	0.44
FFO per share - fully diluted	$	0.31			$	0.34			$	0.45			$	0.46			$	0.44
Core FFO per share - fully diluted	$	0.36			$	0.42			$	0.46			$	0.47			$	0.44
Common dividend per share	$	0.30			$	0.30			$	0.30			$	0.30			$	0.30
Average shares - basic	66,701				66,591				66,410				66,405				66,393
Average shares - fully diluted (for FFO and FAD)	66,750				66,634				66,561				66,556				66,519
(1)  See "Supplemental Definitions" on page 31 of this supplemental for the definitions of FFO and Core FFO.
(2)  Adjustment to the numerators for FFO and Core FFO per share calculations when applying the two-class method for calculating EPS.

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Funds Available for Distribution (In thousands, except per share data) (Unaudited)

	Three Months Ended
	3/31/2014				12/31/2013				9/30/2013				6/30/2013				3/31/2013
Funds available for distribution(1)
FFO	$	21,034			$	22,371			$	30,223			$	30,845			$	29,664
Non-cash loss (gain) on extinguishment of debt	—				88				—				—				—
Tenant improvements	(4,899		)		(7,717		)		(3,957		)		(5,918		)		(3,975		)
Leasing commissions and incentives	(1,640		)		(6,083		)		(3,746		)		(2,342		)		(2,606		)
Recurring capital improvements	(888		)		(1,953		)		(1,917		)		(2,311		)		(721		)
Straight-line rent, net	(353		)		(353		)		(578		)		(483		)		(343		)
Non-cash fair value interest expense	195				256				255				255				254
Non-real estate depreciation and amortization	872				906				939				933				958
Amortization of lease intangibles, net	239				219				129				86				41
Amortization and expensing of restricted share and unit compensation	1,041				2,623				1,215				1,355				1,018
Real estate impairment	—				92				—				—				—
Funds available for distribution (FAD)	15,601				10,449				22,563				22,420				24,290
Cash loss (gain) on extinguishment of debt	—				2,649				—				—				—
Non-share-based severance expense	48				1,537				—				—				—
Acquisition costs	3,045				817				148				87				213
Core FAD (1)	$	18,694			$	15,452			$	22,711			$	22,507			$	24,503
Allocation to participating securities(2)	(295		)		(44		)		(109		)		(142		)		(120		)
FAD per share - basic	$	0.23			$	0.16			$	0.34			$	0.34			$	0.36
FAD per share - fully diluted	$	0.23			$	0.16			$	0.34			$	0.33			$	0.36
Core FAD per share - fully diluted	$	0.28			$	0.23			$	0.34			$	0.34			$	0.37
Common dividend per share	$	0.30			$	0.30			$	0.30			$	0.30			$	0.30
Average shares - basic	66,701				66,591				66,410				66,405				66,393
Average shares - fully diluted (for FFO and FAD)	66,750				66,634				66,561				66,556				66,519
(1)  See "Supplemental Definitions" on page 31 of this supplemental for the definitions of FAD and Core FAD. (2)  Adjustment to the numerators for FAD and Core FAD per share calculations when applying the two-class method for calculating EPS.

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Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (In thousands) (Unaudited)

	Three Months Ended
	3/31/2014				12/31/2013				9/30/2013				6/30/2013				3/31/2013
Adjusted EBITDA (1)
Net income	$	104,554			$	18,908			$	5,840			$	5,263			$	7,335
Add:
Interest expense, including discontinued operations	14,530				15,840				16,259				16,152				16,518
Real estate depreciation and amortization, including discontinued operations	22,753				22,412				24,383				25,582				25,524
Income tax expense	—				(25		)		6				24				—
Real estate impairment	—				92				—				—				—
Non-real estate depreciation	193				196				203				215				196
Less:
Gain on sale of real estate	(106,273		)		(18,949		)		—				—				(3,195		)
Loss (gain) on extinguishment of debt	—				2,737				—				—				—
Adjusted EBITDA	$	35,757			$	41,211			$	46,691			$	47,236			$	46,378
(1) Adjusted EBITDA is earnings before interest expense, taxes, depreciation, amortization, gain on sale of real estate, real estate impairment, gain/loss on extinguishment of debt and gain from non-disposal activities. We consider Adjusted EBITDA to be an appropriate supplemental performance measure because it permits investors to view income from operations without the effect of depreciation, the cost of debt or non-operating gains and losses. Adjusted EBITDA is a non-GAAP measure.

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Long Term Debt Analysis ($'s in thousands)

	3/31/2014				12/31/2013				9/30/2013				6/30/2013				3/31/2013
Balances Outstanding
Secured (1)
Conventional fixed rate	$	404,359			$	294,671			$	314,305			$	312,211			$	312,396
Unsecured
Fixed rate bonds and notes	746,830				846,703				846,576				846,450				846,323
Credit facility	—				—				85,000				75,000				70,000
Unsecured total	746,830				846,703				931,576				921,450				916,323
Total	$	1,151,189			$	1,141,374			$	1,245,881			$	1,233,661			$	1,228,719
Average Interest Rates
Secured
Conventional fixed rate	5.4		%		6.1		%		6.1		%		6.1		%		6.1		%
Unsecured
Fixed rate bonds	4.9		%		4.9		%		4.9		%		4.9		%		4.9		%
Credit facilities	—		%		—		%		1.4		%		1.4		%		1.4		%
Unsecured total	4.9		%		4.9		%		4.6		%		4.6		%		4.7		%
Average	5.0		%		5.2		%		5.0		%		5.0		%		5.0		%

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 $3.9 million and $3.2 million, respectively.

⁽¹⁾ The secured balances outstanding include the mortgage notes payable which have been reclassified to 'Liabilities related to properties sold or held for sale' on the consolidated balance sheet, the mortgage notes payable are secured by Woodholme Medical Center, Ashburn Farm Office Park I, Ashburn Farm Office Park III totaling $23.5 million (repaid on November 21, 2013 and November 22, 2013). See Medical Office Portfolio Supplemental page 5 for detail by quarter.

    

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Long Term Debt Maturities (in thousands, except average interest rates)

, except per share data)

	Future Maturities of Debt
Year	Secured Debt				Unsecured Debt				Credit Facilities				Total Debt				Avg Interest Rate
2014	$	—			$	—			$	—			$	—
2015	—				150,000				—				150,000				5.4%
2016	142,260				—				—				142,260				5.5%
2017	150,903				—				—				150,903				5.9%
2018	—				—				—				—
2019	31,280				—				—				31,280				5.4%
2020	—				250,000				—				250,000				5.1%
2021	—				—				—				—
2022	44,517				300,000				—				344,517				4.0%
2023	—				—				—				—
2024	—				—				—				—
Thereafter	—				50,000				—				50,000				7.4%
Scheduled principal payments	$	368,960			$	750,000			$	—			$	1,118,960			5.1%
Scheduled amortization payments	31,469				—				—				31,469				4.7%
Net discounts/premiums	3,930				(3,170		)		—				760
Total maturities	$	404,359			$	746,830			$	—			$	1,151,189			5.0%

Weighted average maturity =5.8 years

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Debt Covenant Compliance

Unsecured Notes Payable

Unsecured Line of Credit #1 ($100.0 million)

Unsecured Line of Credit #2 ($400.0 million)

Quarter Ended March 31, 2014

Covenant

Quarter Ended March 31, 2014

Covenant

Quarter Ended March 31, 2014

Covenant

% of Total Indebtedness to Total Assets(1)

42.2

%

≤ 65.0%

N/A

N/A

N/A

N/A

Ratio of Income Available for Debt Service to Annual Debt Service

3.0

≥ 1.5

N/A

N/A

N/A

N/A

% of Secured Indebtedness to Total Assets(1)

14.8

%

≤ 40.0%

N/A

N/A

N/A

N/A

Ratio of Total Unencumbered Assets(2) to Total Unsecured Indebtedness

2.8

≥ 1.5

N/A

N/A

N/A

N/A

Tangible Net Worth(3)

N/A

N/A

$868.9 million

≥ $673.4 million

$870.2 million

≥ $671.9 million

% of Total Liabilities to Gross Asset Value(5)

N/A

N/A

53.4

%

≤ 60.0%

53.4

%

≤ 60.0%

% of Secured Indebtedness to Gross Asset Value(5)

N/A

N/A

16.2

%

≤ 35.0%

16.2

%

≤ 35.0%

Ratio of EBITDA(4) to Fixed Charges(6)

N/A

N/A

2.41

≥ 1.50

2.41

≥ 1.50

Ratio of Unencumbered Pool Value(7) to Unsecured Indebtedness

N/A

N/A

2.29

≥ 1.67

2.29

≥ 1.67

Ratio of Unencumbered Net Operating Income to Unsecured Interest Expense

N/A

N/A

3.22

≥ 2.00

3.22

≥ 2.00

Ratio of Investments(8) to Gross Asset Value(5)

N/A

N/A

4.8

%

≤ 15.0%

4.8

%

≤ 15.0%

(1) Total Assets is calculated by applying a capitalization rate of 7.50% to the EBITDA(4) from the last four consecutive quarters, excluding EBITDA from acquired, disposed, and non-stabilized development properties.

(2) Total Unencumbered Assets is calculated by applying a capitalization rate of 7.50% to the EBITDA(4) from unencumbered properties from the last four consecutive quarters, excluding EBITDA from acquired, disposed, and non-stabilized development properties.

(3) Tangible Net Worth is defined as shareholders equity less accumulated depreciation at the commitment start date plus current accumulated depreciation.

(4) EBITDA is defined in our debt covenants as earnings before minority interests, depreciation, amortization, interest expense, income tax expense, and extraordinary and nonrecurring gains and losses.

(5) Gross Asset Value is calculated by applying a capitalization rate to the annualized EBITDA(4) from the most recently ended quarter, excluding EBITDA from disposed properties and current quarter acquisitions. To this amount, the purchase price of current quarter acquisitions, cash and cash equivalents and development in progress is added.

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

(7) Unencumbered Pool Value is calculated by applying a capitalization rate of 7.50% to the net operating income from unencumbered properties owned for the entire quarter. To this we add the purchase price of unencumbered acquisitions during the current quarter.

(8) Investments is defined as development in progress, including land held for development, plus budgeted development costs upon commencement of construction, if any.

12

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Capital Analysis (In thousands, except per share amounts)

	3/31/2014				12/31/2013				9/30/2013				6/30/2013				3/31/2013
Market Data
Shares Outstanding	66,630				66,531				66,500				66,500				66,485
Market Price per Share	$	23.88			$	23.36			$	25.27			$	26.91			$	27.84
Equity Market Capitalization	$	1,591,124			$	1,554,164			$	1,680,455			$	1,789,515			$	1,850,942
Total Debt	$	1,151,189			$	1,141,374			$	1,245,881			$	1,233,661			$	1,228,719
Total Market Capitalization	$	2,742,313			$	2,695,538			$	2,926,336			$	3,023,176			$	3,079,661
Total Debt to Market Capitalization	0.42		:1		0.42		:1		0.43		:1		0.41		:1		0.40		:1
Earnings to Fixed Charges(1)	0.8x				0.7x				1.1x				1.1x				1.0x
Debt Service Coverage Ratio(2)	2.3x				2.5x				2.7x				2.8x				2.7x
Dividend Data
Total Dividends Paid	$	20,092			$	19,972			$	20,033			$	20,065			$	20,034
Common Dividend per Share	$	0.30			$	0.30			$	0.30			$	0.30			$	0.30
Payout Ratio (Core FFO per share basis)	83.3		%		71.4		%		65.2		%		63.8		%		68.2		%
Payout Ratio (Core FAD per share basis)	107.1		%		130.4		%		88.2		%		88.2		%		81.1		%
Payout Ratio (FAD per share basis)	130.4		%		187.5		%		88.2		%		90.9		%		83.3		%
(1) The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For this purpose, earnings consist of income from continuing operations attributable to the controlling interests plus fixed charges, less capitalized interest. Fixed charges consist of interest expense, including amortized costs of debt issuance, plus interest costs capitalized.
(2) Debt service coverage ratio is computed by dividing Adjusted EBITDA (see page 9) by interest expense and principal amortization.

13

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Same-Store Portfolio Net Operating Income (NOI) Growth & Rental Growth 2014 vs. 2013

	Three Months Ended March 31,
	2014				2013				% Change			Rental Rate Growth
Cash Basis:
Multifamily	$	7,506			$	7,783			(3.6	)%		0.8	%
Office	21,663				21,533				0.6	%		1.4	%
Retail	10,276				10,191				0.8	%		0.5	%
Overall Same-Store Portfolio (1)	$	39,445			$	39,507			(0.2	)%		1.1	%
GAAP Basis:
Multifamily	$	7,603			$	7,943			(4.3	)%		0.8	%
Office	21,837				21,781				0.3	%		1.1	%
Retail	10,394				10,269				1.2	%		0.6	%
Overall Same-Store Portfolio (1)	$	39,834			$	39,993			(0.4	)%		1.0	%

(1)  Non same-store properties were:

Acquisitions:

Multifamily - The Paramount and Yale West

Office - The Army Navy Club Building

Redevelopment:

Office - 7900 Westpark Drive

Sold properties:

Office - The Atrium Building

Medical Office/Office - The Medical Office Portfolio (see Supplemental Definitions on page 31 for list of properties included in the Medical Office Portfolio)

14

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Same-Store Portfolio Net Operating Income (NOI) Detail (In thousands)

	Three Months Ended March 31, 2014
	Multifamily				Office				Medical Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	13,335			$	36,201			$	—			$	14,625			$	—			$	64,161
Non same-store - acquired and in development (1)	1,587				2,863				—				—				—				4,450
Total	14,922				39,064				—				14,625				—				68,611
Real estate expenses
Same-store portfolio	5,732				14,364				—				4,231				—				24,327
Non same-store - acquired and in development (1)	683				1,332				—				—				—				2,015
Total	6,415				15,696				—				4,231				—				26,342
Net Operating Income (NOI)
Same-store portfolio	7,603				21,837				—				10,394				—				39,834
Non same-store - acquired and in development (1)	904				1,531				—				—				—				2,435
Total	$	8,507			$	23,368			$	—			$	10,394			$	—			$	42,269
Same-store portfolio NOI GAAP basis (from above)	$	7,603			$	21,837			$	—			$	10,394			$	—			$	39,834
Straight-line revenue, net for same-store properties	6				(412		)		—				(136		)		—				(542		)
FAS 141 Min Rent	(103		)		57				—				(47		)		—				(93		)
Amortization of lease intangibles for same-store properties	—				181				—				65				—				246
Same-store portfolio NOI, cash basis	$	7,506			$	21,663			$	—			$	10,276			$	—			$	39,445
Reconciliation of NOI to net income
Total NOI	$	8,507			$	23,368			$	—			$	10,394			—				$	42,269
Depreciation and amortization	(4,626		)		(14,595		)		—				(3,269		)		(263		)		(22,753		)
General and administrative	—				—				—				—				(4,429		)		(4,429		)
Interest expense	(1,888		)		(2,558		)		—				(256		)		(9,828		)		(14,530		)
Other income	—				—				—				—				223				223
Acquisition costs	—				—				—				—				(3,045		)		(3,045		)
Discontinued operations:
Income from operations of properties sold or held for sale (1)	—				—				546				—				—				546
Gain on sale of real estate	—				—				—				—				106,273				106,273
Net income (loss)	1,993				6,215				546				6,869				88,931				104,554
Net income attributable to noncontrolling interests	—				—				—				—				—				—
Net income (loss) attributable to the controlling interests	$	1,993			$	6,215			$	546			$	6,869			$	88,931			$	104,554
(1)  For a list of non-same-store properties and held for sale and sold properties, see page 14 of this Supplemental.

15

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Same-Store Net Operating Income (NOI) Detail (In thousands)

	Three Months Ended March 31, 2013
	Multifamily				Office				Medical Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	13,333			$	34,059			$	—			$	13,834			$	—			$	61,226
Non same-store - acquired and in development (1)	—				3,334				—				—				—				3,334
Total	13,333				37,393				—				13,834				—				64,560
Real estate expenses
Same-store portfolio	5,390				12,278				—				3,565				—				21,233
Non same-store - acquired and in development (1)	—				1,321				—				—				—				1,321
Total	5,390				13,599				—				3,565				—				22,554
Net Operating Income (NOI)
Same-store portfolio	7,943				21,781				—				10,269				—				39,993
Non same-store - acquired and in development (1)	—				2,013				—				—				—				2,013
Total	$	7,943			$	23,794			$	—			$	10,269			$	—			$	42,006
Same-store portfolio NOI GAAP basis (from above)	$	7,943			$	21,781			$	—			$	10,269			$	—			$	39,993
Straight-line revenue, net for same-store properties	6				(435		)		—				(45		)		—				(474		)
FAS 141 Min Rent	(166		)		45				—				(89		)		—				(210		)
Amortization of lease intangibles for same-store properties	—				142				—				56				—				198
Same-store portfolio NOI, cash basis	$	7,783			$	21,533			$	—			$	10,191			$	—			$	39,507
Reconciliation of NOI to net income
Total NOI	$	7,943			$	23,794			$	—			$	10,269			$	—			$	42,006
Depreciation and amortization	(3,037		)		(14,291		)		—				(3,530		)		(265		)		(21,123		)
General and administrative	—				—				—				—				(3,862		)		(3,862		)
Interest expense	(1,671		)		(2,602		)		—				(275		)		(11,642		)		(16,190		)
Other income	—				—				—				—				239				239
Acquisition costs	—				—				—				—				(213		)		(213		)
Discontinued operations:
Income from operations of properties sold or held for sale (1)	—				463				2,820				—				—				3,283
Gain on sale of real estate	—				—				—				—				3,195				3,195
Net income (loss)	3,235				7,364				2,820				6,464				(12,548		)		7,335
Net income attributable to noncontrolling interests	—				—				—				—				—				—
Net income (loss) attributable to the controlling interests	$	3,235			$	7,364			$	2,820			$	6,464			$	(12,548	)		$	7,335
(1)  For a list of non-same-store properties and held for sale and sold properties, see page 14 of this Supplemental.

16

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Net Operating Income (NOI) by Region

Washington REIT Portfolio				Washington REIT Portfolio
Maryland/Virginia/DC				Inside & Outside the Beltway
	Percentage of GAAP NOI				Percentage of GAAP NOI
	Q1 2014				Q1 2014
DC				Inside the Beltway
Multifamily	4.6	%		Multifamily	16.8	%
Office	22.6	%		Office	33.8	%
Retail	0.8	%		Retail	7.7	%
	28.0	%			58.3	%
Maryland				Outside the Beltway
Multifamily	2.8	%		Multifamily	3.3	%
Office	10.5	%		Office	21.6	%
Retail	16.9	%		Retail	16.8	%
	30.2	%			41.7	%
Virginia
Multifamily	12.7	%		Total Portfolio	100.0	%
Office	22.2	%
Retail	6.9	%
	41.8	%
Total Portfolio	100.0	%

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Same-Store and Overall Physical Occupancy Levels by Sector

		Physical Occupancy - Same-Store Properties (1)
Sector		3/31/2014			12/31/2013			9/30/2013			6/30/2013			3/31/2013
Multifamily		92.7	%		92.6	%		94.1	%		93.1	%		93.8	%
Office		86.9	%		86.6	%		86.6	%		86.4	%		85.5	%
Retail		93.6	%		91.3	%		91.4	%		93.2	%		92.4	%
Overall Portfolio		90.2	%		89.4	%		89.8	%		90.0	%		89.5	%
		Physical Occupancy - All Properties
Sector		3/31/2014			12/31/2013			9/30/2013			6/30/2013			3/31/2013
Multifamily		92.2	%		92.1	%		94.1	%		93.1	%		93.8	%
Office		83.7	%		85.7	%		86.1	%		86.3	%		85.4	%
Medical Office		—	%		89.0	%		84.6	%		84.8	%		85.2	%
Retail		93.6	%		91.3	%		91.4	%		93.2	%		92.4	%
Overall Portfolio		88.4	%		88.8	%		88.7	%		89.1	%		88.6	%

(1)  Non same-store properties were:

Acquisitions:

Multifamily - The Paramount and Yale West

Office - The Army Navy Club Building

Redevelopment:

Office - 7900 Westpark Drive

Held for sale and sold properties:

Office - The Atrium Building

Medical Office/Office - The Medical Office Portfolio (see Supplemental Definitions on page 31 for list of properties included in the Medical Office Portfolio)

18

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Same-Store Portfolio and Overall Economic Occupancy Levels by Sector

		Economic Occupancy - Same-Store Properties(1)
Sector		3/31/2014			12/31/2013			9/30/2013			6/30/2013			3/31/2013
Multifamily		91.9	%		92.4	%		93.5	%		92.7	%		93.1	%
Office		88.2	%		87.3	%		87.5	%		86.7	%		86.3	%
Retail		92.9	%		92.0	%		91.5	%		92.8	%		91.6	%
Overall Portfolio		90.0	%		89.4	%		89.7	%		89.3	%		88.9	%
		Economic Occupancy - All Properties
Sector		3/31/2014			12/31/2013			9/30/2013			6/30/2013			3/31/2013
Multifamily		91.6	%		92.2	%		93.5	%		92.7	%		93.1	%
Office		85.4	%		86.0	%		86.7	%		86.5	%		85.6	%
Medical Office		87.4	%		89.4	%		87.1	%		87.2	%		87.6	%
Retail		92.9	%		92.0	%		91.5	%		92.8	%		91.6	%
Overall Portfolio		88.2	%		88.6	%		88.7	%		88.7	%		88.2	%

(1)  Non same-store properties were:

Acquisitions:

Multifamily - The Paramount and Yale West

Office - The Army Navy Club Building

Redevelopment:

Office - 7900 Westpark Drive

Held for sale and sold properties:

Office - The Atrium Building

Medical Office/Office - The Medical Office Portfolio (see Supplemental Definitions on page 31 for list of properties included in the Medical Office Portfolio)

19

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Acquisition and Disposition Summary
March 31, 2014
(in thousands)

0,

Acquisition Summary
		Acquisition Date		# of Units		Square Feet			3/31/2014 Leased Percentage			Investment				Mortgage Assumed
Yale West	Washington, DC	February 21, 2014		216					88	%		$	73,000			$	48,221
The Army Navy Club Building	Washington, DC	March 26, 2014				108,000			100	%		79,000				52,640
												$	152,000			$	100,861

2012

Disposition Summary

Disposition Date

Property Type

Square Feet

Contract Sales Price

GAAP Gain

Medical Office Portfolio Transactions III & IV

January 21, 2014

Medical Office

427,011

$

193,561

$

106,273

20

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Development/Re-Development Summary
March 31, 2014
(in thousands)

Property and Location

Total Rentable Square Feet or # of Units

Anticipated Total Cost

Cost to Date

Draws on Construction Loan to Date

Anticipated Construction Completion Date

Leased %

Development Summary

650 N. Glebe Road, Arlington, VA

163 units & 2,200 square feet retail

$

49,904

$

29,323

$

10,495

fourth quarter 2014

N/A

Re-Development Summary

7900 Westpark Drive, McLean, VA

528,000 square feet

$

35,000

$

3,915

N/A

first quarter 2015

73%

21

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Commercial Leasing Summary - New Leases

	1st Quarter 2014								4th Quarter 2013									3rd Quarter 2013								2nd Quarter 2013								1st Quarter 2013
Gross Leasing Square Footage
Office Buildings	43,243								144,675									147,194								94,191								65,566
Medical Office Buildings	—								3,826									5,804								3,082								15,629
Retail Centers	29,527								22,631									49,396								6,240								46,100
Total	72,770								171,132							171,132		202,394								103,513								127,295
Weighted Average Term (yrs)
Office Buildings	7.3								7.2									11.1								7.8								8.5
Medical Office Buildings	0.0								10.3									5.2								5.4								7.2
Retail Centers	9.6								7.8									9.8								7.1								7.3
Total	8.2								7.3									10.6								7.6								7.9
Rental Rate Increases:	GAAP				CASH				GAAP				CASH					GAAP				CASH				GAAP				CASH				GAAP				CASH
Rate on expiring leases
Office Buildings	$	28.65			$	30.53			$	31.31			$	32.29				$	32.66			$	33.28			$	28.28			$	29.07			$	29.14			$	30.36
Medical Office Buildings	—				—				29.56				31.13					39.59				41.07				31.53				34.17				33.53				35.53
Retail Centers	25.27				25.96				26.23				26.91					19.86				20.06				31.31				31.71				10.26				10.26
Total	$	27.28			$	28.68			$	30.42			$	31.35				$	29.73			$	30.28			$	28.56			$	29.38			$	22.84			$	23.72
Rate on new leases
Office Buildings	$	32.53			$	29.86			$	33.78			$	31.31				$	33.06			$	28.74			$	30.34			$	27.53			$	31.96			$	28.86
Medical Office Buildings	—				—				34.78				30.43					40.01				37.73				30.97				29.12				36.67				33.94
Retail Centers	30.77				27.66				27.74				26.04					23.45				22.02				33.54				31.98				19.12				19.04
Total	$	31.81			$	28.97			$	32.78			$	30.39				$	30.91			$	27.36			$	30.55			$	27.84			$	27.89			$	25.93
Percentage Increase
Office Buildings	13.6		%		(2.2		)%		7.9		%		(3.0		)%			1.2		%		(13.7		)%		7.3		%		(5.3		)%		9.7		%		(4.9		)%
Medical Office Buildings	—		%		—		%		17.7		%		(2.3		)%			1.1		%		(8.1		)%		(1.8		)%		(14.8		)%		9.4		%		(4.5		)%
Retail Centers	21.7		%		6.5		%		5.8		%		(3.2		)%			18.1		%		9.8		%		7.1		%		0.8		%		86.3		%		85.5		%
Total	16.6		%		1.0		%		7.8		%		(3.1		)%			4.0		%		(9.7		)%		7.0		%		(5.3		)%		22.1		%		9.3		%
	Total Dollars				$ per Sq Ft				Total Dollars				$ per Sq Ft					Total Dollars				$ per Sq Ft				Total Dollars				$ per Sq Ft				Total Dollars				$ per Sq Ft
Tenant Improvements
Office Buildings	$	1,955,769			$	45.23			$	6,189,544			$	42.78				$	8,230,229			$	55.91			$	3,285,080			$	34.88			$	2,941,901			$	44.87
Medical Office Buildings	—				—				63,587				16.62					101,630				17.51				67,248				21.82				513,774				32.87
Retail Centers	38,923				1.32				215,340				9.52					751,184				15.21				119,800				19.20				2,307,500				50.05
Subtotal	$	1,994,692			$	27.41			$	6,468,471			$	37.80				$	9,083,043			$	44.88			$	3,472,128			$	33.55			$	5,763,175			$	45.27
Leasing Commissions and Incentives
Office Buildings	$	1,207,798			$	27.93			$	4,353,688			$	30.09				$	6,781,162			$	46.07			$	2,173,271			$	23.08			$	2,041,020			$	31.13
Medical Office Buildings	—				—				91,665				23.96					99,930				17.22				42,827				13.90				223,311				14.29
Retail Centers	388,220				13.15				180,197				7.96					517,974				10.49				71,769				11.50				303,796				6.59
Subtotal	$	1,596,018			$	21.93			$	4,625,550			$	27.03				$	7,399,066			$	36.56			$	2,287,867			$	22.10			$	2,568,127			$	20.18
Tenant Improvements and Leasing Commissions and Incentives
Office Buildings	$	3,163,567			$	73.16			$	10,543,232			$	72.87				$	15,011,391			$	101.98			$	5,458,351			$	57.96			$	4,982,921			$	76.00
Medical Office Buildings	—				—				155,252				40.58					201,560				34.73				110,075				35.72				737,085				47.16
Retail Centers	427,143				14.47				395,537				17.48					1,269,158				25.70				191,569				30.70				2,611,296				56.64
Total	$	3,590,710			$	49.34			$	11,094,021			$	64.83				$	16,482,109			$	81.44			$	5,759,995			$	55.65			$	8,331,302			$	65.45

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Commercial Leasing Summary - Renewal Leases

	1st Quarter 2014								4th Quarter 2013								3rd Quarter 2013								2nd Quarter 2013								1st Quarter 2013
Gross Leasing Square Footage
Office Buildings	60,108								201,109								140,894								92,245								192,943
Medical Office Buildings	—								12,232								24,471								49,383								21,294
Retail Centers	27,100								38,995								112,736								172,474								46,124
Total	87,208								252,336								278,101								314,102								260,361
Weighted Average Term (yrs)
Office Buildings	7.0								5.8								6.6								3.5								2.7
Medical Office Buildings	0.0								7.8								3.0								10.4								5.0
Retail Centers	3.3								4.0								7.3								5.3								4.8
Total	5.8								5.7								6.5								5.6								3.3
Rental Rate Increases:	GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH
Rate on expiring leases
Office Buildings	$	32.71			$	35.31			$	30.12			$	33.00			$	38.86			$	40.53			$	30.72			$	32.10			$	29.74			$	31.56
Medical Office Buildings	—				—				32.36				34.47				27.49				29.14				31.60				34.20				37.92				40.11
Retail Centers	27.54				30.66				17.51				18.22				20.07				20.74				7.78				7.89				28.27				29.13
Total	$	31.26			$	34.05			$	28.28			$	30.79			$	30.25			$	31.50			$	18.27			$	19.14			$	30.15			$	31.83
Rate on new leases
Office Buildings	$	37.02			$	34.06			$	35.30			$	32.88			$	42.04			$	39.42			$	32.51			$	31.62			$	31.81			$	31.40
Medical Office Buildings	—				—				36.28				33.16				29.48				28.82				35.23				32.72				39.34				37.20
Retail Centers	30.92				30.08				17.91				17.62				24.43				22.89				8.74				8.53				30.40				29.32
Total	$	35.36			$	33.03			$	32.66			$	30.53			$	33.80			$	31.79			$	19.88			$	19.11			$	32.18			$	31.51
Percentage Increase
Office Buildings	13.2		%		(3.6		)%		17.2		%		(0.4		)%		8.2		%		(2.7		)%		5.8		%		(1.5		)%		7.0		%		(0.5		)%
Medical Office Buildings	—		%		—		%		12.1		%		(3.8		)%		7.2		%		(1.1		)%		11.5		%		(4.3		)%		3.7		%		(7.2		)%
Retail Centers	12.3		%		(1.9		)%		2.3		%		(3.3		)%		21.7		%		10.4		%		12.3		%		8.1		%		7.5		%		0.7		%
Total	13.1		%		(3.0		)%		15.5		%		(0.8		)%		11.7		%		0.9		%		8.9		%		(0.1		)%		6.7		%		(1.0		)%
	Total Dollars				$ per Sq Ft				Total Dollars				$ per Sq Ft				Total Dollars				$ per Sq Ft				Total Dollars				$ per Sq Ft				Total Dollars				$ per Sq Ft
Tenant Improvements
Office Buildings	$	896,712			$	14.92			$	7,573,493			$	37.66			$	2,788,460			$	19.79			$	565,393			$	6.12			$	1,035,279			$	5.37
Medical Office Buildings	—				—				183,219				14.98				114,252				4.67				639,396				12.94				189,280				8.89
Retail Centers	—				—				—				—				28,600				0.25				65,261				0.38				—				—
Subtotal	$	896,712			$	10.28			$	7,756,712			$	30.74			$	2,931,312			$	10.54			$	1,270,050			$	4.04			$	1,224,559			$	4.70
Leasing Commissions and Incentives
Office Buildings	$	1,318,800			$	21.94			$	4,065,164			$	20.21			$	2,747,403			$	19.50			$	220,889			$	2.40			$	454,823			$	2.35
Medical Office Buildings	—				—				143,190				11.71				68,973				2.82				125,662				2.55				125,097				5.87
Retail Centers	32,300				1.19				32,725				0.84				176,809				1.57				82,993				0.48				75,176				1.63
Subtotal	$	1,351,100			$	15.49			$	4,241,079			$	16.80			$	2,993,185			$	10.77			$	429,544			$	1.37			$	655,096			$	2.52
Tenant Improvements and Leasing Commissions and Incentives
Office Buildings	$	2,215,512			$	36.86			$	11,638,657			$	57.87			$	5,535,863			$	39.29			$	786,282			$	8.52			$	1,490,102			$	7.72
Medical Office Buildings	—				—				326,409				26.69				183,225				7.49				765,058				15.49				314,377				14.76
Retail Centers	32,300				1.19				32,725				0.84				205,409				1.82				148,254				0.86				75,176				1.63
Total	$	2,247,812			$	25.77			$	11,997,791			$	47.54			$	5,924,497			$	21.31			$	1,699,594			$	5.41			$	1,879,655			$	7.22

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10 Largest Tenants - Based on Annualized Rent
March 31, 2014

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		33			6.17	%		210,354			3.50	%
Advisory Board Company	1		62			3.53	%		181,101			3.01	%
Booz Allen Hamilton, Inc.	1		22			2.89	%		222,989			3.71	%
Engility Corporation	1		42			2.76	%		140,400			2.33	%
Patton Boggs LLP	1		37			2.51	%		110,566			1.84	%
Sunrise Assisted Living, Inc.	1		6			1.49	%		81,987			1.36	%
Epstein, Becker & Green, P.C.	1		33			1.40	%		53,427			0.89	%
General Services Administration	3		56			1.36	%		52,282			0.87	%
ManTech International Corporation	2		10			1.35	%		68,846			1.14	%
George Washington University	2		29			1.33	%		69,775			1.16	%
Total/Weighted Average			34			24.79	%		1,191,727			19.81	%

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Industry Diversification
March 31, 2014

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	$	66,169,123			37.34	%		2,040,539			34.08	%
Credit Intermediation and Related Activities	17,119,333				9.66	%		329,416			5.50	%
Religious, Grantmaking, Civic, Professional, and Similar Organizations	11,010,727				6.21	%		303,120			5.06	%
Food Services and Drinking Places	8,297,059				4.68	%		269,798			4.51	%
Food and Beverage Stores	6,797,396				3.84	%		342,197			5.72	%
Executive, Legislative, and Other General Government Support	5,929,121				3.35	%		171,587			2.87	%
Educational Services	5,785,393				3.26	%		182,278			3.04	%
Ambulatory Health Care Services	4,481,843				2.53	%		145,082			2.42	%
Health and Personal Care Stores	3,592,835				2.03	%		102,574			1.71	%
Broadcasting (except Internet)	3,512,874				1.98	%		90,810			1.52	%
Personal and Laundry Services	3,483,407				1.97	%		110,570			1.85	%
Sporting Goods, Hobby, Book, and Music Stores	3,233,587				1.82	%		199,925			3.34	%
Electronics and Appliance Stores	3,104,302				1.75	%		170,066			2.84	%
Administrative and Support Services	3,098,113				1.75	%		87,688			1.46	%
Furniture and Home Furnishings Stores	3,014,232				1.70	%		153,629			2.57	%
Miscellaneous Store Retailers	3,002,674				1.69	%		164,342			2.74	%
Clothing and Clothing Accessories Stores	2,795,759				1.58	%		139,623			2.33	%
Publishing Industries (except Internet)	2,724,621				1.54	%		79,659			1.33	%
Nursing and Residential Care Facilities	2,717,923				1.53	%		81,987			1.37	%
Amusement, Gambling, and Recreation Industries	2,317,634				1.31	%		123,363			2.06	%
General Merchandise Stores	1,875,727				1.06	%		221,503			3.70	%
Telecommunications	1,563,277				0.88	%		41,334			0.69	%
Real Estate	1,532,144				0.86	%		47,869			0.80	%
Securities, Commodity Contracts, and Other Financial Investments and Related Activities	846,718				0.48	%		29,433			0.49	%
Social Assistance	826,992				0.47	%		36,441			0.61	%
Insurance Carriers and Related Activities	745,889				0.42	%		24,847			0.42	%

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Industry Diversification (continued)
March 31, 2014

Industry Classification (NAICS)	Annualized Base Rental Revenue				Percentage of Aggregate Annualized Rent			Aggregate Rentable Square Feet				Percentage of Aggregate Square Feet
Chemical Manufacturing	673,448				0.38	%		15,572				0.26	%
Construction of Buildings	594,351				0.34	%		19,643				0.33	%
Merchant Wholesalers, Durable Goods	575,253				0.32	%		31,100				0.52	%
Transportation Equipment Manufacturing	542,685				0.31	%		19,864				0.33	%
Motor Vehicle and Parts Dealers	511,071				0.29	%		34,932				0.58	%
Repair and Maintenance	463,689				0.26	%		21,598				0.36	%
Merchant Wholesalers, Nondurable Goods	459,011				0.26	%		29,106				0.49	%
Other	3,796,808				2.15	%		125,596				2.10	%
Total	$	177,195,019			100.00	%		$	5,987,091			100.00	%

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Lease Expirations
March 31, 2014

Year		Number of Leases			Rentable Square Feet			Percent of Rentable Square Feet			Annualized Rent *				Average Rental Rate				Percent of Annualized Rent *
Office:
2014		63			357,496			8.81	%		$	11,972,147			$	33.49			7.61	%
2015		98			583,519			14.38	%		23,521,068				40.31				14.94	%
2016		98			629,466			15.52	%		21,228,629				33.72				13.49	%
2017		69			470,099			11.59	%		18,376,267				39.09				11.68	%
2018		70			306,084			7.55	%		11,383,285				37.19				7.23	%
2019 and thereafter		201			1,710,004			42.15	%		70,907,177				41.47				45.05	%
		599			4,056,668			100.00	%		$	157,388,573			38.80				100.00	%
Retail:
2014		35			86,290			3.96	%		$	1,964,025			22.76				3.99	%
2015		51			366,670			16.85	%		7,312,659				19.94				14.85	%
2016		28			202,462			9.30	%		4,297,721				21.23				8.73	%
2017		43			252,837			11.62	%		6,749,070				26.69				13.70	%
2018		39			361,473			16.61	%		5,276,994				14.60				10.71	%
2019 and thereafter		109			906,909			41.66	%		23,649,769				26.08				48.02	%
		305			2,176,641			100.00	%		$	49,250,238			22.63				100.00	%
Total:
2014		98			443,786			7.12	%		13,936,172				31.40				6.74	%
2015		149			950,189			15.24	%		30,833,727				32.45				14.92	%
2016		126			831,928			13.35	%		25,526,350				30.68				12.35	%
2017		112			722,936			11.60	%		25,125,337				34.75				12.16	%
2018		109			667,557			10.71	%		16,660,279				24.96				8.06	%
2019 and thereafter		310			2,616,913			41.98	%		94,556,946				36.13				45.77	%
		904			6,233,309			100.00	%		$	206,638,811			33.15				100.00	%
* Annualized Rent is equal to the rental rate effective at lease expiration (cash basis) multiplied by 12.

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Schedule of Properties
March 31, 2014

PROPERTIES		LOCATION		YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET
Office Buildings
1901 Pennsylvania Avenue		Washington, DC		1977		1960		101,000
51 Monroe Street		Rockville, MD		1979		1975		221,000
515 King Street		Alexandria, VA		1992		1966		75,000
6110 Executive Boulevard		Rockville, MD		1995		1971		201,000
1220 19th Street		Washington, DC		1995		1976		104,000
1600 Wilson Boulevard		Arlington, VA		1997		1973		166,000
7900 Westpark Drive		McLean, VA		1997		1972/1986/1999		528,000
600 Jefferson Plaza		Rockville, MD		1999		1985		113,000
Wayne Plaza		Silver Spring, MD		2000		1970		96,000
Courthouse Square		Alexandria, VA		2000		1979		115,000
One Central Plaza		Rockville, MD		2001		1974		266,000
1776 G Street		Washington, DC		2003		1979		263,000
West Gude Drive		Rockville, MD		2006		1984/1986/1988		276,000
Monument II		Herndon, VA		2007		2000		208,000
2000 M Street		Washington, DC		2007		1971		230,000
2445 M Street		Washington, DC		2008		1986		290,000
925 Corporate Drive		Stafford, VA		2010		2007		133,000
1000 Corporate Drive		Stafford, VA		2010		2009		136,000
1140 Connecticut Avenue		Washington, DC		2011		1966		183,000
1227 25th Street		Washington, DC		2011		1988		135,000
Braddock Metro Center		Alexandria, VA		2011		1985		345,000
John Marshall II		Tysons Corner, VA		2011		1996/2010		223,000
Fairgate at Ballston		Arlington, VA		2012		1988		142,000
The Army Navy Club Building		Washington, DC		2014		1912/1987		108,000
Subtotal								4,658,000

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Schedule of Properties (continued)
March 31, 2014

PROPERTIES		LOCATION		YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET
Retail Centers
Takoma Park		Takoma Park, MD		1963		1962		51,000
Westminster		Westminster, MD		1972		1969		150,000
Concord Centre		Springfield, VA		1973		1960		76,000
Wheaton Park		Wheaton, MD		1977		1967		74,000
Bradlee Shopping Center		Alexandria, VA		1984		1955		168,000
Chevy Chase Metro Plaza		Washington, DC		1985		1975		49,000
Montgomery Village Center		Gaithersburg, MD		1992		1969		197,000
Shoppes of Foxchase		Alexandria, VA		1994		1960/2006		134,000
Frederick County Square		Frederick, MD		1995		1973		227,000
800 S. Washington Street		Alexandria, VA		1998/2003		1955/1959		47,000
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		145,000
Gateway Overlook		Columbia, MD		2010		2007		223,000
Olney Village Center		Olney, MD		2011		1979/2003		199,000
Subtotal								2,449,000

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Schedule of Properties (continued)
March 31, 2014

PROPERTIES		LOCATION		YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET (1)
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		159,000
Park Adams / 200		Arlington, VA		1969		1959		173,000
Munson Hill Towers / 279		Falls Church, VA		1970		1963		258,000
The Ashby at McLean / 256		McLean, VA		1996		1982		274,000
Walker House Apartments / 212		Gaithersburg, MD		1996		1971/2003		157,000
Bethesda Hill Apartments / 195		Bethesda, MD		1997		1986		225,000
Bennett Park / 224		Arlington, VA		2007		2007		214,000
Clayborne / 74		Alexandria, VA		2008		2008		60,000
Kenmore Apartments / 374		Washington, DC		2008		1948		268,000
The Paramount / 135		Arlington, VA		2013		1984		141,000
Yale West / 216		Washington, DC		2014		2011		173,000
Subtotal (2,890 units)								2,451,000
TOTAL								9,558,000
(1) Multifamily buildings are presented in gross square feet.

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Supplemental Definitions
March 31, 2014

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

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

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

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

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

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

Funds from operations ("FFO") is defined by The National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) in an April, 2002 White Paper as net income (computed in accordance with generally accepted accounting principles (“GAAP”)) excluding gains (or losses) associated with sales of property and impairment of depreciable real estate, 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.

Core Funds From Operations ("Core FFO") is calculated by adjusting FFO for the following items (which we believe are not indicative of the performance of Washington REIT’s operating portfolio and affect the comparative measurement of Washington REIT’s operating performance over time): (1) gains or losses on extinguishment of debt, (2) costs related to the acquisition of properties, (3) severance expense related to corporate reorganization and related to the CEO's retirement and (4) property impairments not already excluded from FFO, as appropriate. These items can vary greatly from period to period, depending upon the volume of our acquisition activity and debt retirements, among other factors. We believe that by excluding these items, Core FFO serves as a useful, supplementary measure of Washington REIT’s ability to incur and service debt, and distribute dividends to its shareholders. Core FFO is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs.

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

Core Funds Available for Distribution ("Core FAD") is calculated by adjusting FAD for the following items (which we believe are not indicative of the performance of Washington REIT’s operating portfolio and affect the comparative measurement of Washington REIT’s operating performance over time): (1) gains or losses on extinguishment of debt, (2) costs related to the acquisition of properties, (3) non-share-based severance expense related to corporate reorganization and related to the CEO's retirement and (4) property impairments not already excluded from FAD, as appropriate. These items can vary greatly from period to period, depending upon the volume of our acquisition activity and debt retirements, among other factors. We believe that by excluding these items, Core FAD serves as a useful, supplementary measure of Washington REIT’s ability to incur and service debt, and distribute dividends to its shareholders. Core FAD is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs.

The Medical Office Portfolio consists of every medical property, as well as undeveloped land, 4661 Kenmore Ave, and two office properties, Woodholme Center and 6565 Arlington Boulevard. We entered into four separate purchase and sale agreements. Transaction I of the Medical Office Portfolio sale and purchase agreement consists of medical office properties (2440 M Street, 15001 Shady Grove Road, 15505 Shady Grove Road, 19500 at Riverside Park formerly Lansdowne Medical Office Building, 9707 Medical Center Drive, CentreMed I and II, 8301 Arlington Boulevard, Sterling Medical Office Building, Shady Grove Medical Village II, Alexandria Professional Center, Ashburn Farm Office Park I, Ashburn Farm Office Park II, Ashburn Farm Office Park III and Woodholme Medical Office Building) and two office properties (6565 Arlington Boulevard and Woodholme Center). Transaction II of the Medical Office Portfolio purchase and sale agreement consist of undeveloped land (4661 Kenmore Ave). Transaction III of the Medical Office Portfolio purchase and sale agreement consists of medical office properties (Woodburn Medical Park I and Woodburn Medical Park II). Transaction IV of the Medical Office Portfolio purchase and sale agreement consists of a medical office properties (Prosperity Medical Center I and II, and Prosperity Medical Center III).

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

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

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

Same-store portfolio properties include all stabilized properties that were owned for the entirety of the current and prior reporting periods, and exclude properties under redevelopment or development and properties purchased or sold at any time during the periods being compared. We define redevelopment properties as those for which we expect to spend significant development and construction costs on existing or acquired buildings pursuant to a formal plan which has a current impact on operating results, occupancy and the ability to lease space with the intended result of a higher economic return on the property. Redevelopment and development properties are included in the same-store pool upon completion of the redevelopment or development, and the earlier of achieving 90% occupancy or two years after completion.

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

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