Washington Real Estate Investment Trust
	Fourth Quarter 2014
	Supplemental Operating and Financial Data
	Contact:			1775 Eye Street, NW
	William T. Camp			Suite 1000
	Executive Vice President and			Washington, DC 20006
	Chief Financial Officer			(202) 774-3200
	E-mail: bcamp@washreit.com			(301) 984-9610 fax

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Company Background and Highlights

Fourth Quarter 2014

Washington REIT (Washington Real Estate Investment Trust - NYSE: WRE) is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington, DC region. Washington REIT is diversified, as it invests in office, retail, and multifamily properties and land for development.

2014 Highlights

During 2014, the remainder of the capital from the Medical Office Portfolio was reinvested. Approximately $300 million of assets were acquired, all located in Washington, DC. Washington REIT continued to improve the quality of its portfolio by acquiring a well-located assets in urban in-fill locations.

For the year, Washington REIT posted same-store GAAP rental rate growth of 0.8% and achieved 5.3% same-store GAAP net operating income growth. In 2014, over 1.4 million square feet of commercial lease transactions were executed including renewals of our large tenants, World Bank and Booz Allen Hamilton, Inc.

Washington REIT, through a joint venture with Crimson Partners, has completed the major construction work of The Maxwell development, a six-story, 163-unit mid-rise apartment community with 2,200 square feet of retail in Arlington, VA with the first tenant having taken occupancy in January. The Maxwell is located at the corner of North Glebe Road and North Carlin Springs Road, across from Ballston Common Mall and within walking distance of the Ballston Metro Station. The total cost of the project is estimated to be $50 million.

Washington REIT commenced a $35.0 million renovation of Silverline Center (formerly 7900 Westpark), a 530,000 square foot office complex located in Tysons, Virginia. The renovation will reposition the property to take advantage of its close proximity to the newly constructed I-495 Express Lanes and the completed Tysons Corner Metro Station (Silver Line). The renovation is anticipated to be completed in the first quarter of 2015.

Fourth Quarter 2014 Update and Recent Activity

During the fourth quarter, Washington REIT acquired Spring Valley Retail Center, a 75,000 square foot retail shopping center located in Northwest Washington, DC for $40.5 million in an off-market transaction. Spring Valley Retail Center consists of five separate buildings of multi-level retail space in the 4800 block of Massachusetts Avenue located in the affluent Spring Valley neighborhood.

In the fourth quarter, the Company also announced plans to relocate its corporate headquarters from Rockville, MD to Washington, DC. This was completed on January 20, 2015. The new headquarters is located in the Central Business District of Washington, DC at 1775 Eye Street, NW, which Washington REIT acquired in 2014. 1775 Eye Street is directly across the street from Farragut West (Blue and Orange Lines) and two blocks from Farragut North (Red Line) Metro stations.

During the fourth quarter and through January 6, 2015, Washington REIT issued 1,308,853 shares at a weighted average price of $27.93 per share through its Sales Agency Financing Agreement with BNY Mellon Capital Markets, LLC, generating approximately $36.5 million in proceeds. These proceeds were used for general corporate purposes.

Washington REIT signed commercial leases totaling approximately 724,000 square feet, including 103,000 square feet of new leases and 621,000 square feet of renewal leases. New leases had an average rental rate increase of 25.6% over expiring lease rates on a GAAP basis and an average lease term of 8.6

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years. Commercial tenant improvements costs were $45.78 per square foot and leasing commissions and incentives were $34.88 per square foot for new leases. Renewal leases had an average rental rate increase of 5.0% over expiring lease rates on a GAAP basis and an average lease term of 6.1 years. Commercial tenant improvements costs were $24.15 per square foot and leasing commissions and incentives were $14.96 per square foot for renewal leases.

On January 20, 2015, Washington REIT announced the appointment of Mr. Stephen E. Riffee as Chief Financial Officer-elect. Mr. Riffee will succeed Bill Camp who, as previously disclosed, is stepping down as CFO after the year-end reporting period. Prior to joining Washington REIT, Mr. Riffee served as Executive Vice President and Chief Financial Officer for Corporate Office Properties Trust (COPT), a public office REIT. In this role, he oversaw all financial functions, the legal department and information technology. Before joining COPT in 2006, he was Executive Vice President and Chief Financial Officer for CarrAmerica Realty Corporation, a national public office REIT. At CarrAmerica, he developed one of the industry’s leading financial and IT teams.

On January 27, 2015, Washington REIT announced the election of Mr. Thomas H. Nolan, Jr., an additional independent member, to the Board of Trustees. Mr. Nolan currently serves as the Chairman of the Board and Chief Executive Officer of Spirit Realty Capital, Inc., a publicly traded REIT that invests primarily in single-tenant, operationally essential real estate.

As of December 31, 2014, Washington REIT owned a diversified portfolio of 56 properties totaling approximately 7 million square feet of commercial space and 3,053 multifamily units, and land held for development. These 56 properties consist of 25 office properties, 17 retail centers and 14 multifamily properties. Washington REIT shares are publicly traded on the New York Stock Exchange (NYSE: WRE).

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Company Background and Highlights

Fourth Quarter 2014

Net Operating Income Contribution by Sector - Fourth Quarter 2014

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 Securities and Exchange Commission, including our 2013 Form 10-K filed on March 3, 2014 and our subsequent Quarterly Reports on Form 10-Q. 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
December 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
	Same-Store Portfolio Net Operating Income (NOI) Detail for the Year	17- 18
	Net Operating Income (NOI) by Region	19
	Same-Store Portfolio & Overall Physical Occupancy Levels by Sector	20
	Same-Store Portfolio & Overall Economic Occupancy Levels by Sector	21
Growth and Strategy
	Acquisition and Disposition Summary	22
	Development/Redevelopment Summary	23
Tenant Analysis
	Commercial Leasing Summary- New Leases	24
	Commercial Leasing Summary- Renewal Leases	25
	10 Largest Tenants - Based on Annualized Rent	26
	Industry Diversification	27
	Lease Expirations	28
Appendix
	Schedule of Properties	29- 31
	Supplemental Definitions	32

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

	Twelve Months Ended								Three Months Ended
OPERATING RESULTS	12/31/2014				12/31/2013				12/31/2014				9/30/2014				6/30/2014				3/31/2014				12/31/2013
Real estate rental revenue	$	288,637			$	263,024			$	74,359			$	73,413			$	72,254			$	68,611			$	66,721
Real estate expenses	(103,695		)		(93,293		)		(25,911		)		(25,914		)		(25,528		)		(26,342		)		(23,826		)
	184,942				169,731				48,448				47,499				46,726				42,269				42,895
Real estate depreciation and amortization	(96,011		)		(85,740		)		(24,503		)		(24,354		)		(24,401		)		(22,753		)		(22,412		)
Income from real estate	88,931				83,991				23,945				23,145				22,325				19,516				20,483
General and administrative expenses	(19,761		)		(17,535		)		(5,981		)		(4,523		)		(4,828		)		(4,429		)		(5,818		)
Acquisition costs	(5,710		)		(1,265		)		(663		)		(69		)		(1,933		)		(3,045		)		(817		)
Interest expense	(59,785		)		(63,573		)		(15,183		)		(15,087		)		(14,985		)		(14,530		)		(15,629		)
Other income	825				926				191				192				219				223				221
Gain on sale of real estate	570				—				—				—				570				—				—
Loss on extinguishment of debt	—				(2,737		)		—				—				—				—				(2,737		)
Income (loss) from continuing operations	5,070				(193		)		2,309				3,658				1,368				(2,265		)		(4,297		)
Discontinued operations:
Income from operations of properties sold or held for sale	546				15,395				—				—				—				546				4,256
Gain (loss) on sale of real estate	105,985				22,144				—				—				(288		)		106,273				18,949
Income (loss) from discontinued operations	106,531				37,539				—				—				(288		)		106,819				23,205
Net income	111,601				37,346				2,309				3,658				1,080				104,554				18,908
Less: Net loss from noncontrolling interests	38				—				21				10				7				—				—
Net income attributable to the controlling interests	$	111,639			$	37,346			$	2,330			$	3,668			$	1,087			$	104,554			$	18,908
Per Share Data:
Net income attributable to the controlling interests	$	1.67			$	0.55			$	0.03			$	0.05			$	0.02			$	1.56			$	0.28
Fully diluted weighted average shares outstanding	66,837				66,580				67,065				66,790				66,761				66,701				66,591
Percentage of Revenues:
Real estate expenses	35.9		%		35.5		%		34.8		%		35.3		%		35.3		%		38.4		%		35.7		%
General and administrative expenses	6.8		%		6.7		%		8.0		%		6.2		%		6.7		%		6.5		%		8.7		%
Ratios:
Adjusted EBITDA / Interest expense	2.7		x		2.8		x		2.8		x		2.9		x		2.7		x		2.5		x		2.6		x
Income (loss) from continuing operations/Total real estate revenue	1.8		%		(0.1		)%		3.1		%		5.0		%		1.9		%		(3.3		)%		(6.4		)%
Net income attributable to the controlling interest/Total real estate revenue	38.7		%		14.2		%		3.1		%		5.0		%		1.5		%		152.4		%		28.3		%
Note: Certain prior period amounts have been reclassified to conform to the current period presentation.

4

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Medical Office Portfolio (In thousands) (Unaudited)

	Twelve Months Ended								Three Months Ended
Income from Medical Office Portfolio (1):	12/31/2014				12/31/2013				12/31/2014				9/30/2014				6/30/2014				3/31/2014				12/31/2013
Real estate rental revenue	$	892			$	45,445			$	—			$	—			$	—			$	892			$	8,651
Real estate expenses	(346		)		(16,878		)		—				—				—				(346		)		(4,184		)
	546				28,567				—				—				—				546				4,467
Real estate depreciation and amortization	—				(12,161		)		—				—				—				—				—
Interest expense	—				(1,196		)		—				—				—				—				(211		)
Income from operations of Medical Office Portfolio (1)	546				15,210				—				—				—				546				4,256
Income from operations of non medical office portfolio sold properties (2)	—				185				—				—				—				—				—
Gain on sale of real estate	105,985				22,144				—				—				(288		)		106,273				18,949
Income (loss) from discontinued operations	$	106,531			$	37,539			$	—			$	—			$	(288	)		$	106,819			$	23,205
									As of
Investment in Medical Office Portfolio (1):									12/31/2014				9/30/2014				6/30/2014				3/31/2014				12/31/2013
Medical Office									$	—			$	—			$	—			$	—			$	125,967
Less accumulated depreciation									—				—				—				—				(46,066		)
Investment in Medical Office Portfolio (1)									$	—			$	—			$	—			$	—			$	79,901

(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 or help for sale properties:

The Atrium Building (sold on March 19, 2013)

5

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Consolidated Balance Sheets (In thousands) (Unaudited)

	12/31/2014				9/30/2014				6/30/2014				3/31/2014				12/31/2013
Assets
Land	$	543,546			$	519,859			$	519,859			$	472,056			$	426,575
Income producing property	1,927,407				1,867,752				1,853,982				1,784,850				1,675,652
	2,470,953				2,387,611				2,373,841				2,256,906				2,102,227
Accumulated depreciation and amortization	(640,434		)		(620,279		)		(600,171		)		(581,644		)		(565,342		)
Net income producing property	1,830,519				1,767,332				1,773,670				1,675,262				1,536,885
Development in progress, including land held for development	76,235				99,500				83,970				68,963				61,315
Total real estate held for investment, net	1,906,754				1,866,832				1,857,640				1,744,225				1,598,200
Investment in real estate held for sale, net	—				—				—				—				79,901
Cash and cash equivalents	15,827				8,571				23,009				62,080				130,343
Restricted cash	10,299				9,496				11,369				107,039				9,189
Rents and other receivables, net of allowance for doubtful accounts	59,745				58,135				55,583				52,736				48,756
Prepaid expenses and other assets	121,082				116,345				112,548				109,092				105,004
Other assets related to properties sold or held for sale	—				—				—				—				4,100
Total assets	$	2,113,707			$	2,059,379			$	2,060,149			$	2,075,172			$	1,975,493
Liabilities
Notes payable	$	747,208			$	747,082			$	746,956			$	746,830			$	846,703
Mortgage notes payable	418,525				413,330				406,975				404,359				294,671
Lines of credit/short-term note payable	50,000				5,000				—				—				—
Accounts payable and other liabilities	54,318				64,153				59,719				56,804				51,742
Advance rents	12,528				12,211				13,172				14,688				13,529
Tenant security deposits	8,899				8,625				8,686				8,402				7,869
Other liabilities related to properties sold or held for sale	—				—				—				—				1,533
Total liabilities	1,291,478				1,250,401				1,235,508				1,231,083				1,216,047
Equity
Preferred shares; $0.01 par value; 10,000 shares authorized	—				—				—				—				—
Shares of beneficial interest, $0.01 par value; 100,000 shares authorized	678				667				666				666				665
Additional paid-in capital	1,184,395				1,153,344				1,152,647				1,151,353				1,151,174
Distributions in excess of net income	(365,518		)		(347,724		)		(331,373		)		(312,417		)		(396,880		)
Total shareholders' equity	819,555				806,287				821,940				839,602				754,959
Noncontrolling interests in subsidiaries	2,674				2,691				2,701				4,487				4,487
Total equity	822,229				808,978				824,641				844,089				759,446
Total liabilities and equity	$	2,113,707			$	2,059,379			$	2,060,149			$	2,075,172			$	1,975,493
Total Debt / Total Market Capitalization	0.39		:1		0.41		:1		0.40		:1		0.42		:1		0.42		:1

6

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

	Twelve Months Ended								Three Months Ended
	12/31/2014				12/31/2013				12/31/2014				9/30/2014				6/30/2014				3/31/2014				12/31/2013
Funds from operations (FFO)(1)
Net Income	$	111,601			$	37,346			$	2,309			$	3,658			$	1,080			$	104,554			$	18,908
Real estate depreciation and amortization	96,011				85,740				24,503				24,354				24,401				22,753				22,412
Gain on sale of real estate (classified as continuing operations)	(570		)		—				—				—				(570		)		—				—
Discontinued operations:
Gain on sale of real estate	(105,985		)		(22,144		)		—				—				288				(106,273		)		(18,949		)
Real estate depreciation and amortization	—				12,161				—				—				—				—				—
FFO	$	101,057			$	113,103			$	26,812			$	28,012			$	25,199			$	21,034			$	22,371
Loss on extinguishment of debt	—				2,737				—				—				—				—				2,737
Real estate impairment	—				92				—				—				—				—				92
Severance expense	1,600				2,490				582				394				576				48				2,157
Relocation expense	764				—				764				—				—				—				—
Acquisition costs	5,710				1,265				663				69				1,933				3,045				817
Core FFO (1)	$	109,131			$	119,687			$	28,821			$	28,475			$	27,708			$	24,127			$	28,174
Allocation to participating securities(2)	$	(317	)		$	(415	)		$	(53	)		$	(44	)		$	(17	)		$	(295	)		$	(44	)
FFO per share - basic	$	1.51			$	1.69			$	0.40			$	0.42			$	0.38			$	0.31			$	0.34
FFO per share - fully diluted	$	1.51			$	1.69			$	0.40			$	0.42			$	0.38			$	0.31			$	0.34
Core FFO per share - fully diluted	$	1.63			$	1.79			$	0.43			$	0.43			$	0.41			$	0.36			$	0.42
Common dividend per share	$	1.2000			$	1.2000			$	0.3000			$	0.3000			$	0.3000			$	0.3000			$	0.3000
Average shares - basic	66,795				66,580				67,002				66,738				66,732				66,701				66,591
Average shares - fully diluted	66,837				66,609				67,065				66,790				66,761				66,750				66,634
(1)  See "Supplemental Definitions" on page 32 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)

	Twelve Months Ended								Three Months Ended
	12/31/2014				12/31/2013				12/31/2014				9/30/2014				6/30/2014				3/31/2014				12/31/2013
Funds available for distribution (FAD)(1)
FFO	$	101,057			$	113,103			$	26,812			$	28,012			$	25,199			$	21,034			$	22,371
Non-cash loss on extinguishment of debt	—				88				—				—				—				—				88
Tenant improvements and leasing incentives	(29,664		)		(23,429		)		(7,103		)		(7,649		)		(9,612		)		(5,300		)		(8,256		)
Leasing commissions	(12,083		)		(12,915		)		(7,800		)		(1,323		)		(1,721		)		(1,239		)		(5,544		)
Recurring capital improvements	(6,029		)		(6,902		)		(1,811		)		(1,720		)		(1,610		)		(888		)		(1,953		)
Straight-line rent, net	(2,821		)		(1,757		)		(1,087		)		(658		)		(723		)		(353		)		(353		)
Non-cash fair value interest expense	290				1,020				33				32				30				195				256
Non-real estate depreciation and amortization	4,348				3,736				1,578				994				904				872				906
Amortization of lease intangibles, net	2,349				475				729				704				677				239				219
Amortization and expensing of restricted share and unit compensation	4,911				6,211				1,134				1,307				1,429				1,041				2,623
Real estate impairment	—				92				—				—				—				—				92
FAD	$	62,358			$	79,722			$	12,485			$	19,699			$	14,573			$	15,601			$	10,449
Cash loss on extinguishment of debt	—				2,649				—				—				—				—				2,649
Non-share-based severance expense	1,424				1,537				546				313				517				48				1,537
Relocation expense	85				—				85				—				—				—				—
Acquisition costs	5,710				1,265				663				69				1,933				3,045				817
Core FAD (1)	$	69,577			$	85,173			$	13,779			$	20,081			$	17,023			$	18,694			$	15,452
Allocation to participating securities(2)	$	(317	)		$	(415	)		$	(53	)		$	(44	)		$	(17	)		$	(295	)		$	(44	)
FAD per share - basic	$	0.93			$	1.19			$	0.19			$	0.29			$	0.22			$	0.23			$	0.16
FAD per share - fully diluted	$	0.93			$	1.19			$	0.19			$	0.29			$	0.22			$	0.23			$	0.16
Core FAD per share - fully diluted	$	1.04			$	1.27			$	0.20			$	0.30			$	0.25			$	0.28			$	0.23
Common dividend per share	$	1.20			$	1.20			$	0.30			$	0.30			$	0.30			$	0.30			$	0.30
Average shares - basic	66,795				66,580				67,002				66,738				66,732				66,701				66,591
Average shares - fully diluted	66,837				66,609				67,065				66,790				66,761				66,750				66,634
(1)  See "Supplemental Definitions" on page 32 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)

	Twelve Months Ended								Three Months Ended
	12/31/2014				12/31/2013				12/31/2014				9/30/2014				6/30/2014				3/31/2014				12/31/2013
Adjusted EBITDA(1)
Net income attributable to the controlling interests	$	111,639			$	37,346			$	2,330			$	3,668			$	1,087			$	104,554			$	18,908
Add:
Interest expense, including discontinued operations	59,785				64,769				15,183				15,087				14,985				14,530				15,840
Real estate depreciation and amortization, including discontinued operations	96,011				97,901				24,503				24,354				24,401				22,753				22,412
Income tax expense	117				5				—				46				71				—				(25		)
Real estate impairment	—				92				—				—				—				—				92
Non-real estate depreciation	1,279				810				793				113				180				193				196
Less:
Gain on sale of real estate	(106,555		)		(22,144		)		—				—				(282		)		(106,273		)		(18,949		)
Loss on extinguishment of debt	—				2,737				—				—				—				—				2,737
Adjusted EBITDA	$	162,276			$	181,516			$	42,809			$	43,268			$	40,442			$	35,757			$	41,211
(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.

9

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Long Term Debt Analysis (In thousands)

	12/31/2014				9/30/2014				6/30/2014				3/31/2014				12/31/2013
Balances Outstanding
Secured
Conventional fixed rate	$	418,525			$	413,330			$	406,975			$	404,359			$	294,671
Unsecured
Fixed rate bonds and notes	747,208				747,082				746,956				746,830				846,703
Credit facility	50,000				5,000				—				—				—
Unsecured total	797,208				752,082				746,956				746,830				846,703
Total	$	1,215,733			$	1,165,412			$	1,153,931			$	1,151,189			$	1,141,374
Average Interest Rates
Secured
Conventional fixed rate	5.2		%		5.3		%		5.3		%		5.4		%		6.1		%
Unsecured
Fixed rate bonds	4.9		%		4.9		%		4.9		%		4.9		%		4.9		%
Credit facilities	1.4		%		1.4		%		—		%		—		%		—		%
Unsecured total	4.7		%		4.8		%		4.9		%		4.9		%		4.9		%
Average	4.9		%		5.0		%		5.0		%		5.0		%		5.2		%

Note: The current balances outstanding of the secured and unsecured fixed rate bonds and notes are shown net of discounts/premiums of $4.0 million and $2.8 million, respectively.

 

    

10

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Long Term Debt Maturities

	Future Maturities of Debt (in thousands, except for %)
Year	Secured Debt				Unsecured Debt				Credit Facilities				Total Debt				Average Interest Rate
2015					$	150,000			$	5,000			$	155,000			5.3%
2016	$	159,456			—				45,000				204,456				4.3%
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													—				—%
2025													—				—%
Thereafter					50,000								50,000				7.4%
Scheduled principal payments	$	386,156			$	750,000			$	50,000			$	1,186,156			4.9%
Scheduled amortization payments	28,344				—				—				28,344				4.7%
Net discounts/premiums	4,025				(2,792		)		—				1,233				—%
Total maturities	$	418,525			$	747,208			$	50,000			$	1,215,733			4.9%

Weighted average maturity = 4.8 years

11

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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 December 31, 2014

Covenant

Quarter Ended December 31, 2014

Covenant

Quarter Ended December 31, 2014

Covenant

% of Total Indebtedness to Total Assets(1)

43.8

%

≤ 65.0%

N/A

N/A

N/A

N/A

Ratio of Income Available for Debt Service to Annual Debt Service

2.9

≥ 1.5

N/A

N/A

N/A

N/A

% of Secured Indebtedness to Total Assets(1)

15.1

%

≤ 40.0%

N/A

N/A

N/A

N/A

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

2.7

≥ 1.5

N/A

N/A

N/A

N/A

Tangible Net Worth(3)

N/A

N/A

$

905.8

million

≥ $673.4 million

$

907.1

million

≥ $671.9 million

% of Total Liabilities to Gross Asset Value(5)

N/A

N/A

52.7

%

≤ 60.0%

52.7

%

≤ 60.0%

% of Secured Indebtedness to Gross Asset Value(5)

N/A

N/A

17.1

%

≤ 35.0%

17.1

%

≤ 35.0%

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

N/A

N/A

2.58

≥ 1.50

2.58

≥ 1.50

Ratio of Unencumbered Pool Value(7) to Unsecured Indebtedness

N/A

N/A

2.44

≥ 1.67

2.44

≥ 1.67

Ratio of Unencumbered Net Operating Income to Unsecured Interest Expense

N/A

N/A

3.60

≥ 2.00

3.60

≥ 2.00

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

N/A

N/A

3.7

%

≤ 15.0%

3.7

%

≤ 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 redevelopment and development costs upon commencement of construction, if any.

12

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Capital Analysis (In thousands, except per share amounts)

	12/31/2014				9/30/2014				6/30/2014				3/31/2014				12/31/2013
Market Data
Shares Outstanding	67,819				66,663				66,636				66,630				66,531
Market Price per Share	$	27.66			$	25.38			$	25.98			$	23.88			$	23.36
Equity Market Capitalization	$	1,875,874			$	1,691,907			$	1,731,203			$	1,591,124			$	1,554,164
Total Debt	$	1,215,733			$	1,165,412			$	1,153,931			$	1,151,189			$	1,141,374
Total Market Capitalization	$	3,091,607			$	2,857,319			$	2,885,134			$	2,742,313			$	2,695,538
Total Debt to Market Capitalization	0.39		:1		0.41		:1		0.40		:1		0.42		:1		0.42		:1
Earnings to Fixed Charges(1)	1.1x				1.2x				1.1x				0.8x				0.7x
Debt Service Coverage Ratio(2)	2.6x				2.7x				2.5x				2.3x				2.5x
Dividend Data
Total Dividends Paid	$	20,124			$	20,019			$	20,042			$	20,092			$	19,972
Common Dividend per Share	$	0.30			$	0.30			$	0.30			$	0.30			$	0.30
Payout Ratio (Core FFO per share basis)	69.8		%		69.8		%		73.2		%		83.3		%		71.4		%
Payout Ratio (Core FAD per share basis)	150.0		%		100.0		%		120.0		%		107.1		%		130.4		%
Payout Ratio (FAD per share basis)	157.9		%		103.4		%		136.4		%		130.4		%		187.5		%
(1) The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For this purpose, earnings consist of income from continuing operations 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.

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

		Three Months Ended December 31, (1)														Twelve Months Ended December 31, (2)
		2014				2013				% Change			Rental Rate Growth			2014				2013				% Change			Rental Rate Growth
Cash Basis:
Multifamily		$	8,848			$	8,339			6.1	%		(1.6	)%		$	31,706			$	31,247			1.5	%		(0.4	)%
Office		23,501				21,902				7.3	%		1.6	%		91,761				86,195				6.5	%		1.3	%
Retail		11,821				10,589				11.6	%		(0.5	)%		45,068				42,197				6.8	%		0.2	%
Overall Same-Store Portfolio		$	44,170			$	40,830			8.2	%		0.4	%		$	168,535			$	159,639			5.6	%		0.7	%
GAAP Basis:
Multifamily		$	8,854			$	8,476			4.5	%		(1.7	)%		$	31,822			$	31,788			0.1	%		(0.4	)%
Office		23,562				22,119				6.5	%		1.5	%		92,276				87,058				6.0	%		1.4	%
Retail		12,106				10,643				13.7	%		0.2	%		45,617				42,308				7.8	%		0.5	%
Overall Same-Store Portfolio		$	44,522			$	41,238			8.0	%		0.5	%		$	169,715			$	161,154			5.3	%		0.8	%

⁽¹⁾ Non same-store properties were:

Acquisitions:

Multifamily - Yale West

Office - Army Navy Club and 1775 Eye Street, NW

Retail - Spring Valley Retail Center

Development/Redevelopment:

Office - Silverline Center (formerly 7900 Westpark Drive)         

Held for sale and sold properties classified as continuing operations:

Retail - 5740 Columbia Road (parcel at Gateway Overlook)

Held for sale and sold properties classified as discontinued operations:

	Medical Office/Office - The Medical Office Portfolio (see Supplemental Definitions on page 32 for list of properties included in the Medical Office Portfolio)

  

⁽²⁾ Non same-store properties were the same listed above in footnote 1, with the addition of The Paramount, a multifamily acquisition in 2013.

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

	Three Months Ended December 31, 2014
	Multifamily				Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	14,329			$	37,050			$	15,255			$	—			$	66,634
Non same-store - acquired and in development(1)	1,428				5,498				799				—				7,725
Total	15,757				42,548				16,054				—				74,359
Real estate expenses
Same-store portfolio	5,475				13,488				3,149				—				22,112
Non same-store - acquired and in development(1)	762				2,836				201				—				3,799
Total	6,237				16,324				3,350				—				25,911
Net Operating Income (NOI)
Same-store portfolio	8,854				23,562				12,106				—				44,522
Non same-store - acquired and in development(1)	666				2,662				598				—				3,926
Total	$	9,520			$	26,224			$	12,704			$	—			$	48,448
Same-store portfolio NOI GAAP basis (from above)	$	8,854			$	23,562			$	12,106			$	—			$	44,522
Straight-line revenue, net for same-store properties	—				(534		)		(290		)		—				(824		)
FAS 141 Min Rent	(6		)		66				(58		)		—				2
Amortization of lease intangibles for same-store properties	—				407				63				—				470
Same-store portfolio NOI, cash basis	$	8,848			$	23,501			$	11,821			$	—			$	44,170
Reconciliation of NOI to net income:
Total NOI	$	9,520			$	26,224			$	12,704			$	—			$	48,448
Depreciation and amortization	(3,997		)		(16,580		)		(3,690		)		(236		)		(24,503		)
General and administrative expenses	—				—				—				(5,981		)		(5,981		)
Acquisition costs	—				—				—				(663		)		(663		)
Interest expense	(2,524		)		(3,019		)		(242		)		(9,398		)		(15,183		)
Other income	—				—				—				191				191
Net Income	2,999				6,625				8,772				(16,087		)		2,309
Net income attributable to noncontrolling interests	—				—				—				21				21
Net income attributable to the controlling interests	$	2,999			$	6,625			$	8,772			$	(16,066	)		$	2,330
(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 December 31, 2013
	Multifamily				Office				Medical Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	14,147			$	35,470			$	—			$	14,050			$	—			$	63,667
Non same-store - acquired and in development(1)	—				3,020				—				34				—				3,054
Total	14,147				38,490				—				14,084				—				66,721
Real estate expenses
Same-store portfolio	5,671				13,351				—				3,407				—				22,429
Non same-store - acquired and in development(1)	146				1,245				—				6				—				1,397
Total	5,817				14,596				—				3,413				—				23,826
Net Operating Income (NOI)
Same-store portfolio	8,476				22,119				—				10,643				—				41,238
Non same-store - acquired and in development(1)	(146		)		1,775				—				28				—				1,657
Total	$	8,330			$	23,894			$	—			$	10,671			$	—			$	42,895
Same-store portfolio NOI GAAP basis (from above)	$	8,476			$	22,119			$	—			$	10,643			$	—			$	41,238
Straight-line revenue, net for same-store properties	(4		)		(455		)		—				(65		)		—				(524		)
FAS 141 Min Rent	(133		)		67				—				(54		)		—				(120		)
Amortization of lease intangibles for same-store properties	—				171				—				65				—				236
Same-store portfolio NOI, cash basis	$	8,339			$	21,902			$	—			$	10,589			$	—			$	40,830
Reconciliation of NOI to net income:
Total NOI	$	8,330			$	23,894			$	—			$	10,671			$	—			$	42,895
Depreciation and amortization	(3,700		)		(14,961		)		—				(3,440		)		(311		)		(22,412		)
General and administrative expense	—				—				—				—				(5,818		)		(5,818		)
Acquisition costs	—				—				—				—				(817		)		(817		)
Interest expense	(1,912		)		(2,579		)		—				(261		)		(10,877		)		(15,629		)
Other income	—				—				—				—				221				221
Loss on extinguishment of debt	—				—				—				—				(2,737		)		(2,737		)
Discontinued operations:
Income from operations of properties sold or held for sale(1)	—				292				3,964				—				—				4,256
Gain on sale of real estate	—				—				—				—				18,949				18,949
Net income	2,718				6,646				3,964				6,970				(1,390		)		18,908
Net income attributable to noncontrolling interests	—				—				—				—				—				—
Net income attributable to the controlling interests	$	2,718			$	6,646			$	3,964			$	6,970			$	(1,390	)		$	18,908
(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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Same-Store Net Operating Income (NOI) Detail (In thousands)

	Twelve Months Ended December 31, 2014
	Multifamily				Office				Medical Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	53,647			$	146,542			$	—			$	59,418			$	—			$	259,607
Non same-store - acquired and in development 1	8,611				19,574				—				845				—				29,030
Total	62,258				166,116				—				60,263				—				288,637
Real estate expenses
Same-store portfolio	21,825				54,266				—				13,801				—				89,892
Non same-store - acquired and in development 1	3,945				9,637				—				221				—				13,803
Total	25,770				63,903				—				14,022				—				103,695
Net Operating Income (NOI)
Same-store portfolio	31,822				92,276				—				45,617				—				169,715
Non same-store - acquired and in development 1	4,666				9,937				—				624				—				15,227
Total	$	36,488			$	102,213			$	—			$	46,241			$	—			$	184,942
Same-store portfolio NOI GAAP basis (from above)	$	31,822			$	92,276			$	—			$	45,617			$	—			$	169,715
Straight-line revenue, net for same-store properties	11				(1,843		)		—				(594		)		—				(2,426		)
FAS 141 Min Rent	(127		)		228				—				(213		)		—				(112		)
Amortization of lease intangibles for same-store properties	—				1,100				—				258				—				1,358
Same-store portfolio NOI, cash basis	$	31,706			$	91,761			$	—			$	45,068			$	—			$	168,535
Reconciliation of NOI to net income:
Total NOI	$	36,488			$	102,213			$	—			$	46,241			$	—			$	184,942
Depreciation and amortization	(17,999		)		(63,768		)		—				(13,282		)		(962		)		(96,011		)
General and administrative expenses	—				—				—				—				(19,761		)		(19,761		)
Acquisition costs	—				—				—				—				(5,710		)		(5,710		)
Interest expense	(9,313		)		(11,606		)		—				(997		)		(37,869		)		(59,785		)
Other income	—				—				—				—				825				825
Gain on sale of real estate	—				—				—				—				570				570
Discontinued operations:
Income from operations of properties sold or held for sale (1)	—								546				—				—				546
Gain on sale of real estate	—				—				—				—				105,985				105,985
Income tax expense on sale of real estate	—				—				—				—								—
Net Income	9,176				26,839				546				31,962				43,078				111,601
Net income attributable to noncontrolling interests	—				—				—				—				38				38
Net income attributable to the controlling interests	$	9,176			$	26,839			$	546			$	31,962			$	43,116			$	111,639
(1)  For a list of non-same-store properties and held for sale and sold properties, see page 14 of this Supplemental.

17

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

	Twelve Months Ended December 31, 2013
	Multifamily				Office				Medical Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	53,589			$	139,270			$	—			$	56,055			$	—			$	248,914
Non same-store - acquired and in development 1	907				13,069				—				134				—				14,110
Total	54,496				152,339				—				56,189				—				263,024
Real estate expenses
Same-store portfolio	21,801				52,212				—				13,747				—				87,760
Non same-store - acquired and in development 1	431				5,081				—				21				—				5,533
Total	22,232				57,293				—				13,768				—				93,293
Net Operating Income (NOI)
Same-store portfolio	31,788				87,058				—				42,308				—				161,154
Non same-store - acquired and in development 1	476				7,988				—				113				—				8,577
Total	$	32,264			$	95,046			$	—			$	42,421			$	—			$	169,731
Same-store portfolio NOI GAAP basis (from above)	$	31,788			$	87,058			$	—			$	42,308			$	—			$	161,154
Straight-line revenue, net for same-store properties	6				(1,672		)		—				(67		)		—				(1,733		)
FAS 141 Min Rent	(547		)		223				—				(289		)		—				(613		)
Amortization of lease intangibles for same-store properties	—				586				—				245				—				831
Same-store portfolio NOI, cash basis	$	31,247			$	86,195			$	—			$	42,197			$	—			$	159,639
Reconciliation of NOI to Net Income
Total NOI	$	32,264			$	95,046			$	—			$	42,421			$	—			$	169,731
Depreciation and amortization	(12,691		)		(58,183		)		—				(13,730		)		(1,136		)		(85,740		)
General and administrative expenses	—				—				—				—				(17,535		)		(17,535		)
Acquisition costs	—				—				—				—				(1,265		)		(1,265		)
Interest expense	(6,973		)		(10,332		)		—				(1,072		)		(45,196		)		(63,573		)
Other income	—				—				—				—				926				926
Loss on extinguishment of debt	—				—				—				—				(2,737		)		(2,737		)
Discontinued operations:
Income from operations of properties sold or held for sale (1)	—				1,351				14,044				—				—				15,395
Gain on sale of real estate	—				—				—				—				22,144				22,144
Net income	12,600				27,882				14,044				27,619				(44,799		)		37,346
Net income attributable to noncontrolling interests	—				—				—				—				—				—
Net income attributable to the controlling interests	$	12,600			$	27,882			$	14,044			$	27,619			$	(44,799	)		$	37,346
(1)  For a list of non-same-store properties and held for sale and sold properties, see page 14 of this Supplemental.

18

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Net Operating Income (NOI) by Region

Washington REIT Portfolio
Maryland/Virginia/DC
		Percentage of Q4 2014 GAAP NOI			Percentage of YTD 2014 GAAP NOI
DC
Multifamily		5.9	%		5.4	%
Office		24.5	%		24.7	%
Retail		2.0	%		1.1	%
		32.4	%		31.2	%
Maryland
Multifamily		2.7	%		2.7	%
Office		10.8	%		10.8	%
Retail		17.7	%		17.2	%
		31.2	%		30.7	%
Virginia
Multifamily		11.0	%		11.6	%
Office		18.9	%		19.8	%
Retail		6.5	%		6.7	%
		36.4	%		38.1	%
Total Portfolio		100.0	%		100.0	%

19

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Same-Store and Overall Physical Occupancy Levels by Sector

		Physical Occupancy - Same-Store Properties (1)
Sector		12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013
Multifamily		93.9	%		94.3	%		94.3	%		92.5	%		92.1	%
Office		92.1	%		91.8	%		90.6	%		86.9	%		86.6	%
Retail		94.5	%		94.4	%		94.2	%		93.6	%		91.3	%
Overall Portfolio		93.2	%		93.2	%		92.6	%		90.2	%		89.3	%
		Physical Occupancy - All Properties
Sector		12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013
Multifamily		93.8	%		94.3	%		93.7	%		92.2	%		92.1	%
Office		86.9	%		87.1	%		86.2	%		83.7	%		85.7	%
Medical Office		—	%		—	%		—	%		—	%		89.0	%
Retail		94.4	%		94.4	%		94.2	%		93.6	%		91.3	%
Overall Portfolio		90.5	%		90.7	%		90.1	%		88.4	%		88.8	%

⁽¹⁾ Non same-store properties were:

Acquisitions:

Multifamily - Yale West

Office - The Army Navy Club Building and 1775 Eye Street, NW

Retail - Spring Valley Shopping Center

Redevelopment:

Office - Silverline Center (formally 7900 Westpark Drive)    

Sold properties:

Retail - 5740 Columbia Road (parcel at Gateway Overlook)

Medical Office/Office - Transaction III and IV Medical Office Portfolio (Woodburn Medical Park I & II and Prosperity Medical Center I, II & III).

20

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Same-Store Portfolio and Overall Economic Occupancy Levels by Sector

		Economic Occupancy - Same-Store Properties(1)
Sector		12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013
Multifamily		94.2	%		94.5	%		93.3	%		91.7	%		92.2	%
Office		92.8	%		92.5	%		90.4	%		88.2	%		87.3	%
Retail		94.9	%		94.9	%		93.9	%		92.9	%		91.9	%
Overall Portfolio		93.6	%		93.5	%		91.8	%		90.0	%		89.4	%
		Economic Occupancy - All Properties
Sector		12/31/2014			9/30/2014			6/30/2014			3/31/2014			12/31/2013
Multifamily		94.2	%		94.1	%		92.6	%		91.6	%		92.2	%
Office		86.8	%		87.0	%		86.0	%		85.4	%		86.0	%
Medical Office		—	%		—	%		—	%		87.4	%		89.4	%
Retail		94.5	%		94.9	%		93.9	%		92.9	%		92.0	%
Overall Portfolio		89.8	%		90.0	%		88.9	%		88.2	%		88.6	%

⁽¹⁾ Non same-store properties were:

Acquisitions:

Multifamily - Yale West

Office - The Army Navy Club Building and 1775 Eye Street, NW

Retail - Spring Valley Shopping Center

Redevelopment:

Office - Silverline Center (formally 7900 Westpark Drive)    

Held for sale and sold properties:

Retail - 5740 Columbia Road (parcel at Gateway Overlook)

Medical Office/Office - Transaction III and IV Medical Office Portfolio (Woodburn I & II and Prosperity I, II & III).

21

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Acquisition and Disposition Summary
December 31, 2014
($'s in thousands)

Acquisition Summary
		Acquisition Date		# of units		Square Feet			12/31/2014 Leased Percentage				Investment				Mortgage Assumed
Yale West	Washington, DC	February 21, 2014		216					95.4		%		$	73,000			$	48,221
The Army Navy Club Building	Washington, DC	March 26, 2014				108,000			97.5		%		79,000				52,640
1775 Eye Street, NW	Washington, DC	May 1, 2014				185,000			65.4		%		104,500				N/A
Spring Valley Retail Center	Washington, DC	October 1, 2014				75,000			92.8		%		40,500				N/A
						368,000							$	297,000			$	100,861
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			$	105,985
5740 Columbia Road		May 2, 2014		Retail		3,000			1,600				570
						430,011			$	195,161			$	106,555

22

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Development/Redevelopment Summary
December 31, 2014
(in thousands)

Property and Location

Total Rentable Square Feet or # of Units

Anticipated Total Cost

Cash Cost to Date

Draws on Construction Loan to Date

Construction Completion Date

Leased %

Development Summary

The Maxwell, Arlington, VA

163 units & 2,200 square feet retail

$

49,904

$

44,314

$

27,690

fourth quarter 2014

N/A (1)

Redevelopment Summary

Silverline Center (formerly 7900 Westpark Drive), Tysons, VA

529,000 square feet

$

35,000

$

25,058

N/A

anticipated in first quarter 2015

59.7%

⁽¹⁾ Major construction activities at The Maxwell ended during December 2014. As of December 31, 2014, only two of the six residential floors were available for occupancy.

23

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Commercial Leasing Summary - New Leases

	4th Quarter 2014								3rd Quarter 2014								2nd Quarter 2014								1st Quarter 2014								4th Quarter 2013
Gross Leasing Square Footage
Office	92,349								37,852								69,367								43,243								144,675
Medical Office	—								—								—								—								3,826
Retail	10,965								10,408								32,191								29,527								22,631
Total	103,314								48,260								101,558								72,770								171,132
Weighted Average Term (yrs)
Office	8.5								7.4								5.8								7.3								7.2
Medical Office	0.0								0.0								0.0								0.0								10.3
Retail	9.2								9.8								10.2								9.6								7.8
Total	8.6								7.9								7.1								8.2								7.3
Rental Rate Increases:	GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH
Rate on expiring leases
Office	$	30.37			$	31.66			$	31.50			$	32.62			$	31.14			$	32.00			$	28.65			$	30.53			$	31.31			$	32.29
Medical Office	—				—				—				—				—				—				—				—				29.56				31.13
Retail	34.95				35.52				36.96				37.29				22.59				23.39				25.27				25.96				26.23				26.91
Total	$	30.85			$	32.07			$	32.68			$	33.63			$	28.24			$	29.08			$	27.28			$	28.68			$	30.42			$	31.35
Rate on new leases
Office	$	38.39			$	34.43			$	33.77			$	30.68			$	35.71			$	33.40			$	32.53			$	29.86			$	33.78			$	31.31
Medical Office	—				—				—				—				—				—				—				—				34.78				30.43
Retail	41.82				37.65				43.69				38.76				22.07				21.36				30.77				27.66				27.74				26.04
Total	$	38.75			$	34.77			$	35.91			$	32.43			$	30.79			$	29.04			$	31.81			$	28.97			$	32.78			$	30.39
Percentage Increase
Office	26.4		%		8.8		%		7.2		%		(5.9		)%		14.7		%		4.4		%		13.6		%		(2.2		)%		7.9		%		(3.0		)%
Medical Office	—		%		—		%		—		%		—		%		—		%		—		%		—		%		—		%		17.7		%		(2.3		)%
Retail	19.7		%		6.0		%		18.2		%		4.0		%		(2.3		)%		(8.7		)%		21.7		%		6.5		%		5.8		%		(3.2		)%
Total	25.6		%		8.4		%		9.9		%		(3.6		)%		9.0		%		(0.1		)%		16.6		%		1.0		%		7.8		%		(3.1		)%
Tenant Improvements	Total Dollars				Dollars per Square Foot				Total Dollars				Dollars per Square Foot				Total Dollars				Dollars per Square Foot				Total Dollars				Dollars per Square Foot				Total Dollars				Dollars per Square Foot
Office Buildings	$	4,609,137			$	49.91			$	1,499,573			$	39.62			$	2,330,006			$	33.59			$	1,955,769			$	45.23			$	6,189,544			$	42.78
Medical Office Buildings	—				—				—				—				—				—				—				—				63,587				16.62
Retail Centers	120,600				11.00				162,180				15.58				1,616,068				50.20				38,923				1.32				215,340				9.52
Subtotal	$	4,729,737			$	45.78			$	1,661,753			$	34.43			$	3,946,074			$	38.86			$	1,994,692			$	27.41			$	6,468,471			$	37.80
Leasing Commissions and Incentives
Office Buildings	$	3,328,304			$	36.04			$	1,345,301			$	35.54			$	1,512,211			$	21.80			$	1,207,798			$	27.93			$	4,353,688			$	30.09
Medical Office Buildings	—				—				—				—				—				—				—				—				91,665				23.96
Retail Centers	275,428				25.12				291,731				28.03				300,287				9.33				388,220				13.15				180,197				7.96
Subtotal	$	3,603,732			$	34.88			$	1,637,032			$	33.92			$	1,812,498			$	17.84			$	1,596,018			$	21.93			$	4,625,550			$	27.03
Tenant Improvements and Leasing Commissions and Incentives
Office Buildings	$	7,937,441			$	85.95			$	2,844,874			$	75.16			$	3,842,217			$	55.39			$	3,163,567			$	73.16			$	10,543,232			$	72.87
Medical Office Buildings	—				—				—				—				—				—				—				—				155,252				40.58
Retail Centers	396,028				36.12				453,911				43.61				1,916,355				59.53				427,143				14.47				395,537				17.48
Total	$	8,333,469			$	80.66			$	3,298,785			$	68.35			$	5,758,572			$	56.70			$	3,590,710			$	49.34			$	11,094,021			$	64.83

24

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Commercial Leasing Summary - Renewal Leases

	4th Quarter 2014								3rd Quarter 2014								2nd Quarter 2014								1st Quarter 2014								4th Quarter 2013
Gross Leasing Square Footage
Office Buildings	575,499								44,214								109,686								60,108								201,109
Medical Office Buildings	—								—								—								—								12,232
Retail Centers	45,084								170,568								10,645								27,100								38,995
Total	620,583								214,782								120,331								87,208								252,336
Weighted Average Term (yrs)
Office Buildings	6.1								7.4								4.8								7.0								5.8
Medical Office Buildings	0.0								0.0								0.0								0.0								7.8
Retail Centers	6.8								5.1								4.3								3.3								4.0
Total	6.1								5.6								4.8								5.8								5.7
Rental Rate Increases:	GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH
Rate on expiring leases
Office Buildings	$	35.87			$	37.53			$	32.89			$	35.79			$	33.89			$	35.42			$	32.71			$	35.31			$	30.12			$	33.00
Medical Office Buildings	—				—				—				—				—				—				—				—				32.36				34.47
Retail Centers	33.21				35.65				13.65				13.86				45.12				47.17				27.54				30.66				17.51				18.22
Total	$	35.67			$	37.39			$	17.61			$	18.37			$	34.89			$	36.46			$	31.26			$	34.05			$	28.28			$	30.79
Rate on new leases
Office Buildings	$	37.25			$	35.44			$	44.95			$	41.11			$	36.12			$	34.39			$	37.02			$	34.06			$	35.30			$	32.88
Medical Office Buildings	—				—				—				—				—				—				—				—				36.28				33.16
Retail Centers	40.26				37.30				14.67				14.47				50.91				48.51				30.92				30.08				17.91				17.62
Total	$	37.46			$	35.57			$	20.90			$	19.95			$	37.42			$	35.64			$	35.36			$	33.03			$	32.66			$	30.53
Percentage Increase
Office Buildings	3.9		%		(5.6		)%		36.7		%		14.9		%		6.6		%		(2.9		)%		13.2		%		(3.6		)%		17.2		%		(0.4		)%
Medical Office Buildings	—		%		—		%		—		%		—		%		—		%		—		%		—		%		—		%		12.1		%		(3.8		)%
Retail Centers	21.2		%		4.6		%		7.4		%		4.4		%		12.8		%		2.8		%		12.3		%		(1.9		)%		2.3		%		(3.3		)%
Total	5.0		%		(4.9		)%		18.7		%		8.6		%		7.3		%		(2.3		)%		13.1		%		(3.0		)%		15.5		%		(0.8		)%
	Total Dollars				Dollars per Square Foot				Total Dollars				Dollars per Square Foot				Total Dollars				Dollars per Square Foot				Total Dollars				Dollars per Square Foot				Total Dollars				Dollars per Square Foot
Tenant Improvements
Office Buildings	$	14,952,993			$	25.98			$	595,757			$	13.47			$	1,897,016			$	17.29			$	896,712			$	14.92			$	7,573,493			$	37.66
Medical Office Buildings	—				—				—				—				—				—				—				—				183,219				14.98
Retail Centers	33,370				0.74				—				—				—				—				—				—				—				—
Subtotal	$	14,986,363			$	24.15			$	595,757			$	2.77			$	1,897,016			$	15.76			$	896,712			$	10.28			$	7,756,712			$	30.74
Leasing Commissions and Incentives
Office Buildings	$	9,087,273			$	15.79			$	532,789			$	12.05			$	1,517,271			$	13.83			$	1,318,800			$	21.94			$	4,065,164			$	20.21
Medical Office Buildings	—				—				—				—				—				—				—				—				143,190				11.71
Retail Centers	192,343				4.27				51,270				0.30				27,278				2.56				32,300				1.19				32,725				0.84
Subtotal	$	9,279,616			$	14.96			$	584,059			$	2.72			$	1,544,549			$	12.84			$	1,351,100			$	15.49			$	4,241,079			$	16.80
Tenant Improvements and Leasing Commissions and Incentives
Office Buildings	$	24,040,266			$	41.77			$	1,128,546			$	25.52			$	3,414,287			$	31.12			$	2,215,512			$	36.86			$	11,638,657			$	57.87
Medical Office Buildings	—				—				—				—				—				—				—				—				326,409				26.69
Retail Centers	225,713				5.01				51,270				0.30				27,278				2.56				32,300				1.19				32,725				0.84
Total	$	24,265,979			$	39.11			$	1,179,816			$	5.49			$	3,441,565			$	28.60			$	2,247,812			$	25.77			$	11,997,791			$	47.54

25

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10 Largest Tenants - Based on Annualized Commercial Income
December 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		72		5.96	%		210,354			3.35	%
Advisory Board Company	2		53		3.80	%		199,762			3.18	%
Booz Allen Hamilton, Inc.	1		133		2.73	%		222,989			3.55	%
Engility Corporation	1		33		2.57	%		134,126			2.14	%
Squire Patton Boggs (USA) LLP	1		28		2.44	%		110,566			1.76	%
Epstein Becker & Green, PC	1		24		1.36	%		53,427			0.85	%
General Services Administration	3		47		1.28	%		52,282			0.83	%
George Washington University	2		20		1.28	%		69,775			1.11	%
Alexandria City School Board	1		173		1.19	%		87,883			1.40	%
Hughes Hubbard & Reed LLP	1		38		1.18	%		53,208			0.85	%
Total/Weighted Average			71		23.79	%		1,194,372			19.02	%

26

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Industry Diversification
December 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	$	72,743,514			37.73	%		2,163,074			34.06	%
Credit Intermediation and Related Activities	18,380,776				9.53	%		339,960			5.35	%
Religious, Grantmaking, Civic, Professional, and Similar Organizations	11,860,775				6.15	%		327,523			5.16	%
Food Services and Drinking Places	8,712,295				4.52	%		280,044			4.41	%
Educational Services	8,091,335				4.20	%		274,371			4.32	%
Food and Beverage Stores	6,625,178				3.44	%		334,922			5.27	%
Ambulatory Health Care Services	4,983,312				2.59	%		158,583			2.50	%
Executive, Legislative, and Other General Government Support	4,895,705				2.54	%		132,521			2.09	%
Furniture and Home Furnishings Stores	4,395,442				2.28	%		216,318			3.41	%
Health and Personal Care Stores	3,919,474				2.03	%		107,853			1.70	%
Securities, Commodity Contracts, and Other Financial Investments and Related Activities	3,675,793				1.91	%		102,022			1.61	%
Personal and Laundry Services	3,583,878				1.86	%		111,799			1.76	%
Sporting Goods, Hobby, Book, and Music Stores	3,318,522				1.72	%		201,827			3.18	%
Electronics and Appliance Stores	3,067,458				1.59	%		169,094			2.66	%
Administrative and Support Services	2,986,850				1.55	%		82,199			1.29	%
Miscellaneous Store Retailers	2,923,561				1.52	%		152,620			2.40	%
Broadcasting (except Internet)	2,881,734				1.49	%		70,672			1.11	%
Publishing Industries (except Internet)	2,763,105				1.43	%		79,659			1.25	%
Clothing and Clothing Accessories Stores	2,602,345				1.35	%		134,838			2.12	%
Amusement, Gambling, and Recreation Industries	2,327,309				1.21	%		123,998			1.95	%
General Merchandise Stores	2,050,440				1.06	%		235,965			3.72	%
Nursing and Residential Care Facilities	1,837,275				0.95	%		66,810			1.05	%
Telecommunications	1,583,739				0.82	%		41,334			0.65	%
Real Estate	1,520,177				0.79	%		46,541			0.73	%
Merchant Wholesalers, Durable Goods	1,077,752				0.56	%		32,539			0.51	%
Social Assistance	962,910				0.50	%		40,408			0.64	%
Chemical Manufacturing	918,560				0.48	%		20,036			0.32	%
Building Material and Garden Equipment and Supplies Dealers	912,397				0.47	%		29,470			0.46	%
Insurance Carriers and Related Activities	799,607				0.41	%		25,182			0.40	%
Construction of Buildings	647,536				0.34	%		21,965			0.35	%
Motor Vehicle and Parts Dealers	601,815				0.31	%		36,832			0.58	%
Transportation Equipment Manufacturing	542,685				0.28	%		19,864			0.31	%
Repair and Maintenance	510,500				0.26	%		22,449			0.35	%
Other	4,088,993				2.13	%		147,924			2.33	%
Total	$	192,792,747			100.00	%		6,351,216			100.00	%

27

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Lease Expirations
December 31, 2014

Year		Number of Leases			Rentable Square Feet			Percent of Rentable Square Feet			Annualized Rent (1)				Average Rental Rate				Percent of Annualized Rent (1)
Office:
2015		90			388,741			9.22	%		$	13,758,719			$	35.39			8.18	%
2016		104			411,138			9.75	%		16,061,685				39.07				9.55	%
2017		84			520,648			12.35	%		20,385,122				39.15				12.12	%
2018		78			429,471			10.19	%		16,184,108				37.68				9.62	%
2019		83			620,918			14.73	%		25,429,569				40.95				15.12	%
2020 and thereafter		195			1,845,861			43.76	%		76,372,587				41.38				45.41	%
		634			4,216,777			100.00	%		$	168,191,790			39.89				100.00	%
Retail:
2015		48			216,599			9.49	%		$	4,908,465			$	22.66			9.22	%
2016		30			211,969			9.29	%		4,580,313				21.61				8.61	%
2017		48			261,640			11.46	%		7,076,420				27.05				13.29	%
2018		41			366,907			16.07	%		5,347,095				14.57				10.05	%
2019		37			166,823			7.31	%		4,975,812				29.83				9.35	%
2020 and thereafter		117			1,058,552			46.38	%		26,339,497				24.88				49.48	%
		321			2,282,490			100.00	%		$	53,227,602			23.32				100.00	%
Total:
2015		138			605,340			9.31	%		$	18,667,184			$	30.84			8.43	%
2016		134			623,107			9.59	%		20,641,998				33.13				9.32	%
2017		132			782,288			12.04	%		27,461,542				35.10				12.40	%
2018		119			796,378			12.25	%		21,531,203				27.04				9.72	%
2019		120			787,741			12.12	%		30,405,381				38.60				13.73	%
2020 and thereafter		312			2,904,413			44.69	%		102,712,084				35.36				46.40	%
		955			6,499,267			100.00	%		$	221,419,392			34.07				100.00	%
(1) Annualized Rent is equal to the rental rate effective at lease expiration (cash basis) multiplied by 12.

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Schedule of Properties
December 31, 2014

PROPERTIES		LOCATION		YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET(1)
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		103,000
1600 Wilson Boulevard		Arlington, VA		1997		1973		166,000
Silverline Center (formerly 7900 Westpark Drive)		Tysons, VA		1997		1972/1986/1999/2014		526,000
600 Jefferson Plaza		Rockville, MD		1999		1985		113,000
Wayne Plaza		Silver Spring, MD		2000		1970		99,000
Courthouse Square		Alexandria, VA		2000		1979		116,000
One Central Plaza		Rockville, MD		2001		1974		267,000
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		353,000
John Marshall II		Tysons, VA		2011		1996/2010		223,000
Fairgate at Ballston		Arlington, VA		2012		1988		142,000
Army Navy Club Building		Washington, DC		2014		1912/1987		108,000
1775 Eye Street, NW		Washington, DC		2014		1964		185,000
Subtotal								4,853,000

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Schedule of Properties
December 31, 2014

PROPERTIES		LOCATION		YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET (1)
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		171,000
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		220,000
Olney Village Center		Olney, MD		2011		1979/2003		199,000
Spring Valley Retail Center		Washington, DC		2014		1941/1950		75,000
Subtotal								2,524,000

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Schedule of Properties
December 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
The Maxwell/163		Arlington, VA		2014		2014		143,000
Subtotal (3,053 units)								2,594,000
TOTAL								9,971,000

⁽¹⁾ Multifamily buildings are presented in gross square feet.

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Supplemental Definitions
December 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 executive retirements or resignations, (4) property impairments not already excluded from FFO, as appropriate and (5) relocation expense. 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 executive retirements or resignations, (4) property impairments not already excluded from FAD, as appropriate and (5) relocation expense. 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.

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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 consists 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.

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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