Washington Real Estate Investment Trust
	Third Quarter 2016
	Supplemental Operating and Financial Data
	Contact:			1775 Eye Street, NW
	Tejal R. Engman			Suite 1000
	Director of Investor Relations			Washington, DC 20006
	E-mail: tengman@washreit.com			(202) 774-3200
				(301) 984-9610 fax

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Company Background and Highlights

Third Quarter 2016

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

Third Quarter 2016 Highlights

•	Reported net income attributable to the controlling interests of $79.7 million, or $1.07 per diluted share, compared to $0.6 million, or $0.01 per diluted share, in the third quarter of 2015

•	Reported NAREIT Funds from Operations (FFO) of $33.0 million, or $0.44 per diluted share, compared to $29.9 million, or $0.44 per diluted share in the third quarter of 2015

•	Reported Core FFO of $0.45 per diluted share for the third quarter 2016

•	Achieved same-store Net Operating Income (NOI) growth of 1.9%, with same-store rental growth of 1.5% over third quarter 2015

•	Achieved same-store NOI growth of 3.5% for the retail portfolio, 1.7% for the multifamily portfolio and 1.0% for the office portfolio over third quarter 2015

•	Improved overall portfolio physical occupancy to 93.2%, 250 basis points higher than third quarter 2015 and 210 basis points higher than second quarter 2016

•	Raised the bottom end and thereby tightened our 2016 Core FFO guidance by $0.01 to a range of $1.75 to $1.77 per fully diluted share

•	Completed the second sale transaction of the suburban Maryland office portfolio, comprising approximately 491,000 square feet for aggregate sale proceeds of $128.5 million

•	Issued 904,000 shares at an average price of $33.32 per share through the Company’s At-the-Market (ATM) program, raising gross proceeds of approximately $30.1 million to fund value-add opportunities, including development, in 2017

Of the 288,000 square feet of commercial leases signed, there were 62,000 square feet of new leases and 226,000 square feet of renewal leases. New leases had an average rental rate increase of 12.7% over expiring lease rates and a weighted average lease term of 6.4 years. Commercial tenant improvement costs were $43.36 per square foot and leasing commissions were $15.02 per square foot for new leases. Renewal leases had an average rental rate increase of 15.8% from expiring lease rates and a weighted average lease term of 4.0 years. Commercial tenant improvement costs were $9.92 per square foot and leasing commissions were $4.00 per square foot for renewal leases.

On September 22, 2016, Washington REIT completed the second of two separate transactions for its suburban Maryland office portfolio. The sale of 51 Monroe and One Central Plaza, comprising approximately 491,000 square feet for aggregate sales proceeds of $128.5 million was structured in a reverse-1031 exchange in conjunction with the acquisition of Riverside Apartments.

In July 2016, Washington REIT entered into a seven year $150.0 million unsecured term loan maturing on July 21, 2023 with a deferred draw period of up to six months. The Company expects to draw on the term loan in the fourth quarter this year and the first quarter of 2017 to refinance pre-payable and maturing secured debt. Washington REIT entered into forward swaps from floating interest rates to a 2.86% all-in fixed interest rate for $150.0 million commencing on March 31, 2017.

During the quarter, Washington REIT issued 904,000 shares at an average price of $33.32 per share through the Company’s ATM program, raising gross proceeds of approximately $30.1 million. The proceeds are expected to be used to fund value-add opportunities, including development, in 2017. Subsequent to quarter end, the Company paid down approximately $102.0 million of secured debt, completing the targeted reduction of $266.0 million of secured debt in 2016.

As of September 30, 2016, Washington REIT owned a diversified portfolio of 49 properties, totaling approximately 6 million square feet of commercial space and 4,480 multifamily units, and land held for development. These 49 properties consist of 19 office properties, 16 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

Third Quarter 2016

Net Operating Income Contribution by Sector - Third Quarter 2016

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. Forward-looking statements include statements in this earnings release preceded by, followed by or that include the words “believe,” “expect,” “intend,” “anticipate,” “potential,” “project,” “will” and other similar expressions. 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 2015 Form 10-K and 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
September 30, 2016
Schedule		Page
Key Financial Data
	Consolidated Statements of Operations	4
	Consolidated Balance Sheets	5
	Funds From Operations	6
	Funds Available for Distribution	7
	Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA)	8
Capital Analysis
	Long Term Debt Analysis	9
	Long Term Debt Maturities	10
	Debt Covenant Compliance	11
	Capital Analysis	12
Portfolio Analysis
	Same-Store Portfolio Net Operating Income (NOI) Growth & Rental Rate Growth	13
	Same-Store Portfolio Net Operating Income (NOI) Detail	14- 15
	Net Operating Income (NOI) by Region	16
	Same-Store Portfolio and Overall Physical Occupancy Levels by Sector	17
	Same-Store Portfolio and Overall Economic Occupancy Levels by Sector	18
Growth and Strategy
	Acquisition and Disposition Summary	19
	Development/Re-Development Summary	20
Tenant Analysis
	Commercial Leasing Summary - New Leases	21
	Commercial Leasing Summary - Renewal Leases	22
	10 Largest Tenants - Based on Annualized Base Rent	23
	Industry Diversification	24
	Lease expirations	25
Appendix
	Schedule of Properties	26- 28
	Supplemental Definitions	29

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

	Nine Months Ended								Three Months Ended
OPERATING RESULTS	9/30/2016				9/30/2015				9/30/2016				6/30/2016				3/31/2016				12/31/2015				9/30/2015
Real estate rental revenue	$	236,312			$	227,325			$	79,770			$	79,405			$	77,137			$	79,102			$	78,243
Real estate expenses	(86,073		)		(84,546		)		(29,164		)		(28,175		)		(28,734		)		(27,688		)		(28,109		)
	150,239				142,779				50,606				51,230				48,403				51,414				50,134
Real estate depreciation and amortization	(82,104		)		(80,127		)		(30,905		)		(25,161		)		(26,038		)		(28,808		)		(29,349		)
Income from real estate	68,135				62,652				19,701				26,069				22,365				22,606				20,785
Interest expense	(41,353		)		(44,534		)		(13,173		)		(13,820		)		(14,360		)		(15,012		)		(14,486		)
Other income	205				547				83				83				39				162				163
Acquisition costs	(1,178		)		(1,937		)		—				(1,024		)		(154		)		(119		)		(929		)
Casualty gain and real estate impairment (loss), net	676				(5,909		)		—				676				—				—				—
Gain on sale of real estate	101,704				31,731				77,592				24,112				—				59,376				—
Loss on extinguishment of debt	—				(119		)		—				—				—				—				—
General and administrative	(15,018		)		(15,269		)		(4,539		)		(4,968		)		(5,511		)		(4,854		)		(4,911		)
Income tax benefit (expense)	691				(70		)		(2		)		693				—				(64		)		(42		)
Net income	113,862				27,092				79,662				31,821				2,379				62,095				580
Less: Net loss from noncontrolling interests	32				515				12				15				5				38				67
Net income attributable to the controlling interests	$	113,894			$	27,607			$	79,674			$	31,836			$	2,384			$	62,133			$	647
Per Share Data:
Net income attributable to the controlling interests	$	1.59			$	0.40			$	1.07			$	0.44			$	0.03			$	0.91			$	0.01
Fully diluted weighted average shares outstanding	71,520				68,290				74,133				71,912				68,488				68,371				68,305
Percentage of Revenues:
Real estate expenses	36.4		%		37.2		%		36.6		%		35.5		%		37.3		%		35.0		%		35.9		%
General and administrative	6.4		%		6.7		%		5.7		%		6.3		%		7.1		%		6.1		%		6.3		%
Ratios:
Adjusted EBITDA / Interest expense	3.3		x		2.9		x		3.5		x		3.4		x		3.0		x		3.1		x		3.2		x
Net income attributable to the controlling interests / Real estate rental revenue	48.2		%		12.1		%		99.9		%		40.1		%		3.1		%		78.5		%		0.8		%

4

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Consolidated Balance Sheets (In thousands) (Unaudited)

	9/30/2016				6/30/2016				3/31/2016				12/31/2015				9/30/2015
Assets
Land	$	573,315			$	573,315			$	561,256			$	561,256			$	572,880
Income producing property	2,092,201				2,072,166				2,095,306				2,076,541				2,074,425
	2,665,516				2,645,481				2,656,562				2,637,797				2,647,305
Accumulated depreciation and amortization	(634,945		)		(613,194		)		(714,689		)		(692,608		)		(677,480		)
Net income producing property	2,030,571				2,032,287				1,941,873				1,945,189				1,969,825
Development in progress, including land held for development	37,463				35,760				27,313				36,094				35,256
Total real estate held for investment, net	2,068,034				2,068,047				1,969,186				1,981,283				2,005,081
Investment in real estate held for sale, net	—				41,704				—				—				5,010
Cash and cash equivalents	8,588				22,379				23,575				23,825				21,012
Restricted cash	10,091				11,054				9,889				13,383				12,544
Rents and other receivables, net of allowance for doubtful accounts	62,989				58,970				63,863				62,890				62,306
Prepaid expenses and other assets	100,788				99,150				118,790				109,787				117,167
Other assets related to properties sold or held for sale	—				5,147				—				—				278
Total assets	$	2,250,490			$	2,306,451			$	2,185,303			$	2,191,168			$	2,223,398
Liabilities
Notes payable	$	744,063			$	743,769			$	743,475			$	743,181			$	742,971
Mortgage notes payable	251,232				252,044				333,853				418,052				418,400
Lines of credit	125,000				269,000				215,000				105,000				195,000
Accounts payable and other liabilities	54,629				52,722				56,348				45,367				54,131
Dividend payable	—				—				—				20,434				—
Advance rents	10,473				10,178				11,589				12,744				10,766
Tenant security deposits	8,634				8,290				9,604				9,378				9,225
Liabilities related to properties sold or held for sale	—				2,338				—				—				329
Total liabilities	1,194,031				1,338,341				1,369,869				1,354,156				1,430,822
Equity
Preferred shares; $0.01 par value; 10,000 shares authorized	—				—				—				—				—
Shares of beneficial interest, $0.01 par value; 100,000 shares authorized	745				737				683				682				682
Additional paid-in capital	1,368,438				1,338,101				1,193,750				1,193,298				1,192,202
Distributions in excess of net income	(309,042		)		(366,352		)		(376,041		)		(357,781		)		(399,421		)
Accumulated other comprehensive loss	(4,870		)		(5,609		)		(4,225		)		(550		)		(2,288		)
Total shareholders' equity	1,055,271				966,877				814,167				835,649				791,175
Noncontrolling interests in subsidiaries	1,188				1,233				1,267				1,363				1,401
Total equity	1,056,459				968,110				815,434				837,012				792,576
Total liabilities and equity	$	2,250,490			$	2,306,451			$	2,185,303			$	2,191,168			$	2,223,398

5

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

	Nine Months Ended								Three Months Ended
	9/30/2016				9/30/2015				9/30/2016				6/30/2016				3/31/2016				12/31/2015				9/30/2015
Funds from operations(1)
Net income	$	113,862			$	27,092			$	79,662			$	31,821			$	2,379			$	62,095			$	580
Real estate depreciation and amortization	82,104				80,127				30,905				25,161				26,038				28,808				29,349
Gain on sale of depreciable real estate	(101,704		)		(30,277		)		(77,592		)		(24,112		)		—				(59,376		)		—
NAREIT funds from operations (FFO)	94,262				76,942				32,975				32,870				28,417				31,527				29,929
Loss on extinguishment of debt	—				119				—				—				—				—				—
Casualty (gain) and real estate impairment loss, net	(676		)		5,909				—				(676		)		—				—				—
(Gain) loss on sale of non depreciable real estate	—				(1,404		)		—				—				—				—				50
Severance expense	828				1,001				242				126				460				—				—
Relocation expense	16				90				16				—				—				—				—
Acquisition and structuring expenses	1,403				2,532				37				1,107				259				189				1,034
Core FFO (1)	$	95,833			$	85,189			$	33,270			$	33,427			$	29,136			$	31,716			$	31,013
Allocation to participating securities(2)	(329		)		(184		)		(200		)		(99		)		(90		)		(180		)		(47		)
NAREIT FFO per share - basic	$	1.32			$	1.13			$	0.44			$	0.46			$	0.41			$	0.46			$	0.44
NAREIT FFO per share - fully diluted	$	1.31			$	1.12			$	0.44			$	0.46			$	0.41			$	0.46			$	0.44
Core FFO per share - fully diluted	$	1.34			$	1.24			$	0.45			$	0.46			$	0.42			$	0.46			$	0.45
Common dividend per share	$	0.90			$	0.90			$	0.30			$	0.30			$	0.30			$	0.30			$	0.30
Average shares - basic	71,348				68,168				73,994				71,719				68,301				68,204				68,186
Average shares - fully diluted (for FFO and FAD)	71,520				68,290				74,133				71,912				68,488				68,371				68,305
(1)  See "Supplemental Definitions" on page 27 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)

	Nine Months Ended								Three Months Ended
	9/30/2016				9/30/2015				9/30/2016				6/30/2016				3/31/2016				12/31/2015				9/30/2015
Funds available for distribution(1)
NAREIT FFO	$	94,262			$	76,942			$	32,975			$	32,870			$	28,417			$	31,527			$	29,929
Non-cash loss on extinguishment of debt	—				119				—				—				—				—				—
Tenant improvements and incentives	(14,071		)		(12,378		)		(4,889		)		(7,639		)		(1,543		)		(6,792		)		(5,231		)
Leasing commissions	(5,616		)		(4,469		)		(1,251		)		(3,350		)		(1,015		)		(2,426		)		(1,714		)
Recurring capital improvements	(3,291		)		(2,752		)		(1,146		)		(1,237		)		(908		)		(3,296		)		(1,326		)
Straight-line rent, net	(2,245		)		(811		)		(682		)		(880		)		(683		)		(533		)		(680		)
Non-cash fair value interest expense	132				109				46				44				42				41				38
Non-real estate depreciation and amortization	2,672				2,999				846				876				950				980				938
Amortization of lease intangibles, net	2,694				2,651				898				853				943				925				913
Amortization and expensing of restricted share and unit compensation	2,661				3,884				292				850				1,519				1,123				863
Funds available for distribution (FAD)	77,198				66,294				27,089				22,387				27,722				21,549				23,730
(Loss) gain on sale of non depreciable real estate	—				(1,404		)		—				—				—				—				50
Non-share-based severance expense	407				196				242				126				39				—				—
Relocation expense	16				107				16				—				—				—				—
Acquisition and structuring expenses	1,403				2,532				37				1,107				259				189				1,034
Casualty (gain) and real estate impairment loss, net	(676		)		5,909				—				(676		)		—				—				—
Core FAD (1)	$	78,348			$	73,634			$	27,384			$	22,944			$	28,020			$	21,738			$	24,814
(1) See "Supplemental Definitions" on page 29 of this supplemental for the definitions of FAD and Core FAD.

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

	Nine Months Ended								Three Months Ended
	9/30/2016				9/30/2015				9/30/2016				6/30/2016				3/31/2016				12/31/2015				9/30/2015
Adjusted EBITDA (1)
Net income	$	113,862			$	27,092			$	79,662			$	31,821			$	2,379			$	62,095			$	580
Add:
Interest expense	41,353				44,534				13,173				13,820				14,360				15,012				14,486
Real estate depreciation and amortization	82,104				80,127				30,905				25,161				26,038				28,808				29,349
Income tax (benefit) expense	(691		)		70				2				(693		)		—				65				42
Casualty (gain) and real estate impairment loss, net	(676		)		5,909				—				(676		)		—				—				—
Non-real estate depreciation	405				449				101				152				152				149				168
Severance expense	828				1,001				242				126				460				—				—
Relocation expense	16				90				16				—				—				—				—
Acquisition and structuring expenses	1,403				2,532				37				1,107				259				189				1,034
Less:
Net (gain) loss on sale of real estate	(101,704		)		(31,681		)		(77,592		)		(24,112		)		—				(59,376		)		50
Loss on extinguishment of debt	—				119				—				—				—				—				—
Adjusted EBITDA	$	136,900			$	130,242			$	46,546			$	46,706			$	43,648			$	46,942			$	45,709
(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, severance expense, relocation expense, acquisition and structuring expenses, gain from non-disposal activities and allocations to noncontrolling interests. 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, and the cost of debt or non-operating gains and losses. Adjusted EBITDA is a non-GAAP measure.

8

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Long Term Debt Analysis ($'s in thousands)

	9/30/2016				6/30/2016				3/31/2016				12/31/2015				9/30/2015
Balances Outstanding
Secured
Conventional fixed rate	$	251,232			$	252,044			$	333,853			$	418,052			$	418,400
Unsecured
Fixed rate bonds	594,905				594,658				594,411				594,164				594,002
Term loans	149,158				149,111				149,064				149,017				148,969
Credit facility	125,000				269,000				215,000				105,000				195,000
Unsecured total	869,063				1,012,769				958,475				848,181				937,971
Total	$	1,120,295			$	1,264,813			$	1,292,328			$	1,266,233			$	1,356,371
Weighted Average Interest Rates
Secured
Conventional fixed rate	5.3		%		5.3		%		5.4		%		5.2		%		5.2		%
Unsecured
Fixed rate bonds	4.7		%		4.7		%		4.7		%		4.7		%		4.7		%
Term loans (1)	2.7		%		2.7		%		2.7		%		2.7		%		2.7		%
Credit facility	1.5		%		1.4		%		1.4		%		1.4		%		1.2		%
Unsecured total	3.9		%		3.6		%		3.7		%		4.0		%		3.7		%
Weighted Average	4.2		%		3.9		%		4.1		%		4.4		%		4.2		%
(1) Washington REIT entered into an interest rate swap to swap from a LIBOR plus 110 basis points floating interest rate to a 2.72% all-in fixed interest rate commencing October 15, 2015.
Note: The current debt balances outstanding are shown net of discounts, premiums and unamortized debt costs (see page 10 of this Supplemental).

    

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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
2016	$	101,865		(1)	$	—			$	—			$	101,865			7.3%
2017	49,038				—				—				49,038				3.2%
2018	—				—				—				—
2019	31,280				—				125,000			(2)	156,280				2.3%
2020	—				250,000				—				250,000				5.1%
2021	—				150,000			(3)	—				150,000				2.7%
2022	44,517				300,000				—				344,517				4.0%
2023	—				—				—				—
2024	—				—				—				—
2025	—				—				—				—
2026	—				—				—				—
Thereafter	—				50,000				—				50,000				7.4%
Scheduled principal payments	$	226,700			$	750,000			$	125,000			$	1,101,700			4.2%
Scheduled amortization payments	20,649				—				—				20,649				4.8%
Net discounts/premiums	4,307				(2,069		)		—				2,238
Loan costs, net of amortization	(424		)		(3,868		)		—				(4,292		)
Total maturities	$	251,232			$	744,063			$	125,000			$	1,120,295			4.2%

Weighted average maturity =4.4 years

⁽¹⁾ The maturity date of the $101.9 million mortgage note secured by 2445 M Street was January 6, 2017, but could be prepaid, without penalty, beginning on October 6, 2016. We prepaid the mortgage on October 6, 2016, after providing notice to the lender of our intention to prepay in September 2016. Therefore, this mortgage note is shown as a 2016 maturity in the above chart.

⁽²⁾ Maturity date for credit facility may be extended for up to two additional 6-month periods at Washington REIT's option.

⁽³⁾ Washington REIT entered into an interest rate swap to swap from a LIBOR plus 110 basis points floating interest rate to a 2.72% all-in fixed interest rate commencing October 15, 2015.

10

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Debt Covenant Compliance

	Unsecured Notes Payable					Unsecured Line of Credit and Term Loans
	Quarter Ended September 30, 2016			Covenant		Quarter Ended September 30, 2016			Covenant
% of Total Indebtedness to Total Assets(1)	39.9	%		≤ 65.0%		N/A			N/A
Ratio of Income Available for Debt Service to Annual Debt Service	3.6			≥ 1.5		N/A			N/A
% of Secured Indebtedness to Total Assets(1)	8.9	%		≤ 40.0%		N/A			N/A
Ratio of Total Unencumbered Assets(2) to Total Unsecured Indebtedness	2.8			≥ 1.5		N/A			N/A
% of Net Consolidated Total Indebtedness to Consolidated Total Asset Value(3)	N/A			N/A		35.7	%		≤ 60.0%
Ratio of Consolidated Adjusted EBITDA(4) to Consolidated Fixed Charges(5)	N/A			N/A		3.39			≥ 1.50
% of Consolidated Secured Indebtedness to Consolidated Total Asset Value(3)	N/A			N/A		8.1	%		≤ 40.0%
% of Consolidated Unsecured Indebtedness to Unencumbered Pool Value(6)	N/A			N/A		32.1	%		≤ 60.0%
Ratio of Unencumbered Adjusted Net Operating Income to Consolidated Unsecured Interest Expense	N/A			N/A		4.49			≥ 1.75
(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) Consolidated Total Asset Value is the sum of unrestricted cash plus the quotient of applying a capitalization rate to the annualized NOI from the most recently ended quarter for each asset class, excluding NOI from disposed properties, acquisitions during the past 6 quarters, development, major redevelopment and low occupancy properties. To this amount, we add the purchase price of acquisitions during the past 6 quarters plus values for development, major redevelopment and low occupancy properties.
(4) Consolidated Adjusted EBITDA is defined as earnings before noncontrolling interests, depreciation, amortization, interest expense, income tax expense, acquisition costs, extraordinary, unusual or nonrecurring transactions including sale of assets, impairment, gains and losses on extinguishment of debt and other non-cash charges.
(5) Consolidated Fixed Charges consist of interest expense excluding capitalized interest and amortization of deferred financing costs, principal payments and preferred dividends, if any.
(6) Unencumbered Pool Value is the sum of unrestricted cash plus the quotient of applying a capitalization rate to the annualized NOI from unencumbered properties from the most recently ended quarter for each asset class excluding NOI from disposed properties, acquisitions during the past 6 quarters, development, major redevelopment and low occupancy properties. To this we add the purchase price of unencumbered acquisitions during the past 6 quarters and values for unencumbered development, major redevelopment and low occupancy properties.

11

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Capital Analysis (In thousands, except per share amounts)

									Three Months Ended
									9/30/2016				6/30/2016				3/31/2016				12/31/2015				9/30/2015
Market Data
Shares Outstanding									$	74,579			$	73,651			$	68,326			$	68,191			$	68,180
Market Price per Share									31.12				31.46				29.21				27.06				24.93
Equity Market Capitalization									$	2,320,898			$	2,317,060			$	1,995,802			$	1,845,248			$	1,699,727
Total Debt									$	1,120,295			$	1,264,813			$	1,292,328			$	1,266,233			$	1,356,371
Total Market Capitalization									$	3,441,193			$	3,581,873			$	3,288,130			$	3,111,481			$	3,056,098
Total Debt to Market Capitalization									0.33		:1		0.35		:1		0.39		:1		0.41		:1		0.44		:1
Earnings to Fixed Charges(1)									6.9x				3.3x				1.2x				5.1x				1.0x
Debt Service Coverage Ratio(2)									3.3x				3.2x				2.8x				2.9x				2.9x
Dividend Data	Nine Months Ended								Three Months Ended
	9/30/2016				9/30/2015				9/30/2016				6/30/2016				3/31/2016				12/31/2015				9/30/2015
Total Dividends Declared	$	65,155			$	61,510			$	22,364			$	22,147			$	20,644			$	20,493			$	20,491
Common Dividend Declared per Share	$	0.90			$	0.90			$	0.30			$	0.30			$	0.30			$	0.30			$	0.30
Payout Ratio (Core FFO basis)	67.2		%		72.6		%		66.7		%		65.2		%		71.4		%		65.0		%		66.7		%
Payout Ratio (Core FAD basis)	82.6		%		83.3		%		81.1		%		93.8		%		73.2		%		93.8		%		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. The earnings to fixed charges ratios for the three months ended September 30, 2016, June 30, 2016 and December 31, 2015 include gains on the sale of real estate of $77.6 million, $24.1 million and $59.4 million, respectively.
(2) Debt service coverage ratio is computed by dividing Adjusted EBITDA (see page 8) by interest expense and principal amortization.

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Same-Store Portfolio Net Operating Income (NOI) Growth & Rental Rate Growth 2016 vs. 2015

	Nine Months Ended September 30,											Rental Rate			Three Months Ended September 30,											Rental Rate
	2016				2015				% Change			Growth			2016				2015				% Change			Growth
Cash Basis:
Multifamily	$	24,604			$	23,824			3.3	%		0.2	%		$	8,184			$	8,045			1.7	%		0.5	%
Office	59,546				58,477				1.8	%		1.1	%		19,969				19,719				1.3	%		0.8	%
Retail	33,173				33,214				(0.1	)%		3.1	%		11,463				11,044				3.8	%		2.5	%
Overall Same-Store Portfolio (1)	$	117,323			$	115,515			1.6	%		1.4	%		$	39,616			$	38,808			2.1	%		1.1	%
GAAP Basis:
Multifamily	$	24,584			$	23,812			3.2	%		0.1	%		$	8,179			$	8,039			1.7	%		0.5	%
Office	58,792				57,423				2.4	%		1.7	%		19,565				19,372				1.0	%		1.7	%
Retail	34,204				33,946				0.8	%		2.8	%		11,834				11,438				3.5	%		2.0	%
Overall Same-Store Portfolio (1)	$	117,580			$	115,181			2.1	%		1.6	%		$	39,578			$	38,849			1.9	%		1.5	%

(1)  Non same-store properties were:

Acquisitions:

Multifamily - The Wellington and Riverside Apartments

Development/Redevelopment:

Multifamily - The Maxwell

Office - Silverline Center and The Army Navy Club Building

Sold properties:

Multifamily - Country Club Towers and Munson Hill Towers

Office - Dulles Station II, Wayne Plaza, 600 Jefferson Plaza, 6110 Executive Boulevard, West Gude, 51 Monroe Street and One Central Plaza

Retail - Montgomery Village Center

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

	Three Months Ended September 30, 2016
	Multifamily				Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	13,936			$	31,900			$	15,404			$	—			$	61,240
Non same-store - acquired and in development (1)	9,784				8,746				—				—				18,530
Total	23,720				40,646				15,404				—				79,770
Real estate expenses
Same-store portfolio	5,757				12,335				3,570				—				21,662
Non same-store - acquired and in development (1)	3,998				3,504				—				—				7,502
Total	9,755				15,839				3,570				—				29,164
Net Operating Income (NOI)
Same-store portfolio	8,179				19,565				11,834				—				39,578
Non same-store - acquired and in development (1)	5,786				5,242				—				—				11,028
Total	$	13,965			$	24,807			$	11,834			$	—			$	50,606
Same-store portfolio NOI (from above)	$	8,179			$	19,565			$	11,834			$	—			$	39,578
Straight-line revenue, net for same-store properties	4				(347		)		(188		)		—				(531		)
FAS 141 Min Rent	1				249				(233		)		—				17
Amortization of lease intangibles for same-store properties	—				502				50				—				552
Same-store portfolio cash NOI	$	8,184			$	19,969			$	11,463			$	—			$	39,616
Reconciliation of NOI to net income
Total NOI	$	13,965			$	24,807			$	11,834			$	—			$	50,606
Depreciation and amortization	(12,055		)		(14,971		)		(3,640		)		(239		)		(30,905		)
General and administrative	—				—				—				(4,539		)		(4,539		)
Interest expense	(996		)		(2,218		)		(205		)		(9,754		)		(13,173		)
Other income	—				—				—				83				83
Gain on sale of real estate	—				—				—				77,592				77,592
Income tax expense	—				—				—				(2		)		(2		)
Net income	914				7,618				7,989				63,141				79,662
Net loss attributable to noncontrolling interests	—				—				—				12				12
Net income attributable to the controlling interests	$	914			$	7,618			$	7,989			$	63,153			$	79,674
(1)  For a list of non-same-store properties and held for sale and sold properties, see page 13 of this Supplemental.

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

	Three Months Ended September 30, 2015
	Multifamily				Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	13,616			$	31,248			$	14,895			$	—			$	59,759
Non same-store - acquired and in development (1)	5,327				12,368				789				—				18,484
Total	18,943				43,616				15,684				—				78,243
Real estate expenses
Same-store portfolio	5,577				11,876				3,457				—				20,910
Non same-store - acquired and in development (1)	2,271				4,736				192				—				7,199
Total	7,848				16,612				3,649				—				28,109
Net Operating Income (NOI)
Same-store portfolio	8,039				19,372				11,438				—				38,849
Non same-store - acquired and in development (1)	3,056				7,632				597				—				11,285
Total	$	11,095			$	27,004			$	12,035			$	—			$	50,134
Same-store portfolio NOI (from above)	$	8,039			$	19,372			$	11,438			$	—			$	38,849
Straight-line revenue, net for same-store properties	5				(294		)		(198		)		—				(487		)
FAS 141 Min Rent	1				158				(250		)		—				(91		)
Amortization of lease intangibles for same-store properties	—				483				54				—				537
Same-store portfolio cash NOI	$	8,045			$	19,719			$	11,044			$	—			$	38,808
Reconciliation of NOI to net income
Total NOI	$	11,095			$	27,004			$	12,035			$	—			$	50,134
Depreciation and amortization	(7,905		)		(17,487		)		(3,708		)		(249		)		(29,349		)
General and administrative	—				—				—				(4,911		)		(4,911		)
Interest expense	(2,464		)		(3,003		)		(227		)		(8,792		)		(14,486		)
Other income	—				—				—				163				163
Acquisition costs	—				—				—				(929		)		(929		)
Income tax expense	—				—				—				(42		)		(42		)
Net income (loss)	726				6,514				8,100				(14,760		)		580
Net income attributable to noncontrolling interests	—				—				—				67				67
Net income (loss) attributable to the controlling interests	$	726			$	6,514			$	8,100			$	(14,693	)		$	647
(1)  For a list of non-same-store properties and held for sale and sold properties, see page 13 of this Supplemental.

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Net Operating Income (NOI) by Region

		Percentage of NOI
		Q3 2016			YTD 2016
	DC
	Multifamily	5.6	%		5.6	%
	Office	23.0	%		23.8	%
	Retail	1.4	%		1.5	%
		30.0	%		30.9	%
	Maryland
	Multifamily	2.3	%		2.4	%
	Office	4.8	%		8.6	%
	Retail	14.7	%		14.4	%
		21.8	%		25.4	%
	Virginia
	Multifamily	19.7	%		16.9	%
	Office	21.2	%		19.9	%
	Retail	7.3	%		6.9	%
		48.2	%		43.7	%
	Total Portfolio	100.0	%		100.0	%

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Same-Store Portfolio and Overall Physical Occupancy Levels by Sector

		Physical Occupancy - Same-Store Properties (1), (2)
Sector		9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015
Multifamily (calculated on a unit basis)		96.4	%		95.1	%		95.3	%		94.4	%		93.5	%
Multifamily		95.6	%		94.8	%		94.5	%		94.3	%		93.2	%
Office		92.3	%		91.7	%		91.2	%		91.0	%		90.8	%
Retail		95.6	%		92.1	%		91.2	%		91.5	%		95.4	%
Overall Portfolio		94.2	%		92.7	%		92.1	%		92.1	%		92.9	%
		Physical Occupancy - All Properties (2)
Sector		9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015
Multifamily (calculated on a unit basis)		94.5	%		94.7	%		95.2	%		93.9	%		92.6	%
Multifamily		94.2	%		94.4	%		94.5	%		93.4	%		92.3	%
Office		90.5	%		87.5	%		87.8	%		87.6	%		87.8	%
Retail		95.6	%		92.1	%		91.2	%		91.5	%		94.4	%
Overall Portfolio		93.2	%		91.1	%		90.6	%		90.2	%		90.7	%

(1)  Non same-store properties were:

Acquisitions:

Multifamily - The Wellington and Riverside Apartments

Development/Redevelopment:

Multifamily - The Maxwell

Office - Silverline Center and The Army Navy Club Building

Sold properties:

Multifamily - Munson Hill Towers

Office - Dulles Station II, Wayne Plaza, 600 Jefferson Plaza, 6110 Executive Boulevard, West Gude, 51 Monroe Street and One Central Plaza

Retail - Montgomery Village Center

(2) Physical occupancy is calculated as occupied square footage as a percentage of total square footage as of the last day of that period, except for the rows labeled "Multifamily (calculated on a unit basis)," on which physical occupancy is calculated as occupied units as a percentage of total available units as of the last day of that period.

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Same-Store Portfolio and Overall Economic Occupancy Levels by Sector

		Economic Occupancy - Same-Store Properties(1)
Sector		9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015
Multifamily		96.1	%		95.5	%		94.4	%		94.5	%		95.0	%
Office		92.1	%		91.1	%		90.0	%		91.6	%		91.4	%
Retail		91.8	%		89.3	%		89.7	%		92.0	%		93.5	%
Overall Portfolio		93.0	%		91.7	%		90.9	%		92.4	%		92.8	%
		Economic Occupancy - All Properties
Sector		9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015
Multifamily		94.6	%		95.3	%		93.9	%		93.2	%		92.7	%
Office		89.5	%		86.6	%		86.9	%		88.3	%		87.7	%
Retail		91.8	%		89.3	%		89.7	%		91.1	%		92.3	%
Overall Portfolio		91.5	%		89.3	%		89.0	%		90.0	%		89.8	%

(1)  Non same-store properties were:

Acquisitions:

Multifamily - The Wellington and Riverside Apartments

Development/Redevelopment:

Multifamily - The Maxwell

Office - Silverline Center and The Army Navy Club Building

Sold properties classified as continuing operations:

Multifamily - Munson Hill Towers

Office - Dulles Station II, Wayne Plaza, 600 Jefferson Plaza, 6110 Executive Boulevard, West Gude, 51 Monroe Street and One Central Plaza

Retail - Montgomery Village Center

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Acquisition and Disposition Summary

Acquisition Summary

Location

Acquisition Date

Property type

# of units

9/30/2016 Leased Percentage

Investment (in thousands)

Riverside Apartments

Alexandria, VA

May 20, 2016

Multifamily

1,222

95.7

%

$

244,750

Disposition Summary

Location

Disposition Date

Property Type

Square feet

Contract Sales Price

GAAP Gain

Maryland Office Portfolio, Transaction II

various

September 22, 2016

Office

491,000

$

128,500

$

77,592

Maryland Office Portfolio, Transaction I

various

June 27, 2016

Office

692,000

111,500

23,585

Dulles Station, Phase II (1)

Herndon, VA

May 26, 2016

Office

N/A

12,100

527

⁽¹⁾ Land held for future development and an interest in a parking garage.

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Development/Re-development Summary

Property and Location	Total Rentable Square Feet or # of Units	Anticipated Total Cost (in thousands)			Cash Cost to Date			Anticipated Construction Completion Date	Leased %
Development Summary
The Trove, Arlington, VA	401 units	$	124,287		$	17,336		third quarter 2019	N/A
Re-development Summary
The Army Navy Club Building (1), Washington DC	108,000 square feet	$	4,045		$	595		first quarter 2017	50%
Spring Valley Village	7,200 additional square feet	$	6,000		$	913		fourth quarter 2017	N/A

⁽¹⁾ This re-development project primarily consists of adding amenities, to include a lounge and conference center with access to the rooftop and a renovated penthouse, and upgrading the building's lobby and other common areas.

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Commercial Leasing Summary - New Leases

	3rd Quarter 2016								2nd Quarter 2016								1st Quarter 2016								4th Quarter 2015								3rd Quarter 2015
Gross Leasing Square Footage
Office Buildings	60,538								28,154								32,249								220,374								93,389
Retail Centers	1,342								6,313								11,777								—								74,102
Total	61,880								34,467								44,026								220,374								167,491
Weighted Average Term (years)
Office Buildings	6.4								6.1								7.7								6.5								6.8
Retail Centers	8.3								8.0								9.8								0.0								10.2
Total	6.4								6.5								8.3								6.5								8.3
Weighted Average Free Rent Period (months) (1)
Office Buildings	6.1								5.9								7.5								7.1								12.8
Retail Centers	3.9								1.2								7.6								0.0								2.7
Total	6.1								5.3								7.5								7.1								9.0
Rental Rate Increases:	GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH
Rate on expiring leases
Office Buildings	$	39.31			$	39.01			$	34.80			$	35.43			$	30.91			$	31.78			$	32.57			$	33.76			$	27.72			$	28.67
Retail Centers	43.67				46.15				28.92				29.11				11.93				12.04				—				—				22.32				22.77
Total	$	39.40			$	39.17			$	33.73			$	34.27			$	25.83			$	26.50			$	32.57			$	33.76			$	25.33			$	26.06
Rate on new leases
Office Buildings	$	44.06			$	40.80			$	39.83			$	37.09			$	40.60			$	36.84			$	39.45			$	36.62			$	36.46			$	33.53
Retail Centers	60.89				55.00				28.13				26.45				16.22				14.45				—				—				27.61				26.14
Total	$	44.42			$	41.10			$	37.69			$	35.14			$	34.08			$	30.85			$	39.45			$	36.62			$	32.55			$	30.26
Percentage Increase
Office Buildings	12.1		%		4.6		%		14.5		%		4.7		%		31.4		%		15.9		%		21.1		%		8.5		%		31.6		%		17.0		%
Retail Centers	39.4		%		19.2		%		(2.7		)%		(9.1		)%		35.9		%		20.0		%		—		%		—		%		23.7		%		14.8		%
Total	12.7		%		4.9		%		11.8		%		2.5		%		31.9		%		16.4		%		21.1		%		8.5		%		28.5		%		16.1		%
	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	$	2,682,882			$	44.32			$	1,356,810			$	48.19			$	1,571,632			$	48.73			$	13,946,572			$	63.29			$	4,775,584			$	51.14
Retail Centers	—				—				111,840				17.72				203,276				17.26				—				—				5,220,923				70.46
Subtotal	$	2,682,882			$	43.36			$	1,468,650			$	42.61			$	1,774,908			$	40.31			$	13,946,572			$	63.29			$	9,996,507			$	59.68
Leasing Commissions (1)
Office Buildings	$	890,195			$	14.70			$	375,882			$	13.35			$	505,349			$	15.67			$	3,165,371			$	14.36			$	1,173,511			$	12.57
Retail Centers	39,380				29.34				80,461				12.75				103,983				8.83				—				—				1,212,567				16.36
Subtotal	$	929,575			$	15.02			$	456,343			$	13.24			$	609,332			$	13.84			$	3,165,371			$	14.36			$	2,386,078			$	14.25
Tenant Improvements and Leasing Commissions
Office Buildings	$	3,573,077			$	59.02			$	1,732,692			$	61.54			$	2,076,981			$	64.40			$	17,111,943			$	77.65			$	5,949,095			$	63.71
Retail Centers	39,380				29.34				192,301				30.47				307,259				26.09				—				—				6,433,490				86.82
Total	$	3,612,457			$	58.38			$	1,924,993			$	55.85			$	2,384,240			$	54.15			$	17,111,943			$	77.65			$	12,382,585			$	73.93

⁽¹⁾ In prior quarters we disclosed leasing commissions and incentives (i.e. free rent) in the aggregate. In the interest of providing more granular data regarding our leasing costs, we are disclosing leasing commissions and free rent separately. We continue to disclose leasing commissions in terms of both total dollars and costs per square foot. We are disclosing free rent costs in terms of weighted average months of free rent per lease. Prior quarters have been recasted to conform with the current quarter's presentation.

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Commercial Leasing Summary - Renewal Leases

	3rd Quarter 2016								2nd Quarter 2016								1st Quarter 2016								4th Quarter 2015								3rd Quarter 2015
Gross Leasing Square Footage
Office Buildings	151,722								30,787								193,275								42,033								191,599
Retail Centers	74,535								9,076								27,243								32,594								53,415
Total	226,257								39,863								220,518								74,627								245,014
Weighted Average Term (years)
Office Buildings	3.7								4.6								7.1								6.6								2.8
Retail Centers	4.7								6.3								11.6								3.3								4.4
Total	4.0								5.0								7.6								5.1								3.1
Weighted Average Free Rent Period (months) (1)
Office Buildings	2.4								4.4								7.9								4.8								0.7
Retail Centers	—								0.7								5.1								—								0.1
Total	1.8								3.3								7.5								3.2								0.6
Rental Rate Increases:	GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH
Rate on expiring leases
Office Buildings	$	35.85			$	36.37			$	30.13			$	31.53			$	36.53			$	38.93			$	35.61			$	37.12			$	35.23			$	37.43
Retail Centers	25.03				25.28				32.56				47.14				24.53				26.67				21.30				22.56				23.21				23.72
Total	$	32.28			$	32.72			$	30.69			$	35.08			$	35.04			$	37.42			$	29.36			$	30.76			$	32.61			$	34.44
Rate on new leases
Office Buildings	$	42.20			$	40.38			$	34.42			$	32.44			$	40.55			$	37.12			$	37.01			$	34.12			$	31.37			$	30.29
Retail Centers	27.61				26.58				41.78				46.62				41.49				35.39				25.08				23.50				26.63				26.10
Total	$	37.39			$	35.84			$	36.10			$	35.67			$	40.66			$	36.90			$	31.80			$	29.49			$	30.34			$	29.38
Percentage Increase
Office Buildings	17.7		%		11.0		%		14.2		%		2.9		%		11.0		%		(4.7		)%		3.9		%		(8.1		)%		(11.0		)%		(19.1		)%
Retail Centers	10.3		%		5.1		%		28.3		%		(1.1		)%		69.2		%		32.7		%		17.8		%		4.2		%		14.7		%		10.0		%
Total	15.8		%		9.5		%		17.6		%		1.7		%		16.0		%		(1.4		)%		8.3		%		(4.1		)%		(7.0		)%		(14.7		)%
	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	$	2,243,523			$	14.79			$	153,365			$	4.98			$	6,945,781			$	35.94			$	1,580,078			$	37.59			$	580,967			$	3.03
Retail Centers	—				—				—				—				626,200				22.99				—				—				36,540				0.68
Subtotal	$	2,243,523			$	9.92			$	153,365			$	3.85			$	7,571,981			$	34.34			$	1,580,078			$	21.17			$	617,507			$	2.52
Leasing Commissions (1)
Office Buildings	$	780,080			$	5.14			$	198,223			$	6.44			$	2,801,717			$	14.50			$	443,229			$	10.54			$	464,150			$	2.41
Retail Centers	124,121				1.67				74,824				8.24				394,380				14.48				59,302				1.82				104,730				1.96
Subtotal	$	904,201			$	4.00			$	273,047			$	6.85			$	3,196,097			$	14.49			$	502,531			$	6.73			$	568,880			$	2.31
Tenant Improvements and Leasing Commissions
Office Buildings	$	3,023,603			$	19.93			$	351,588			$	11.42			$	9,747,498			$	50.44			$	2,023,307			$	48.13			$	1,045,117			$	5.44
Retail Centers	124,121				1.67				74,824				8.24				1,020,580				37.47				59,302				1.82				141,270				2.64
Total	$	3,147,724			$	13.92			$	426,412			$	10.70			$	10,768,078			$	48.83			$	2,082,609			$	27.90			$	1,186,387			$	4.83

⁽¹⁾ In prior quarters we disclosed leasing commissions and incentives (i.e. free rent) in the aggregate. In the interest of providing more granular data regarding our leasing costs, we are disclosing leasing commissions and free rent separately. We continue to disclose leasing commissions in terms of both total dollars and costs per square foot. We are disclosing free rent costs in terms of weighted average months of free rent per lease. Prior quarters have been recasted to conform with the current quarter's presentation.

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10 Largest Tenants - Based on Annualized Commercial Income
September 30, 2016

Tenant	Number of Buildings		Weighted Average Remaining Lease Term in Months			Percentage of Aggregate Portfolio Annualized Commercial Income			Aggregate Rentable Square Feet			Percentage of Aggregate Occupied Square Feet
World Bank	1		51			6.19	%		210,354			3.83	%
Advisory Board Company	2		32			4.13	%		199,878			3.64	%
Engility Corporation	1		12			2.95	%		134,126			2.44	%
Capital One	1		66			2.81	%		136,556			2.48	%
Squire Patton Boggs (USA) LLP (1)	1		7			2.78	%		110,566			2.01	%
Booz Allen Hamilton, Inc.	1		112			2.58	%		222,989			4.06	%
Epstein, Becker & Green, P.C.	1		147			1.54	%		55,318			1.01	%
Alexandria City School Board	1		152			1.36	%		84,693			1.54	%
Hughes Hubbard & Reed LLP	1		17			1.34	%		53,208			0.97	%
Morgan Stanley Smith Barney Financing	1		53			1.16	%		49,395			0.90	%
Total/Weighted Average			62			26.84	%		1,257,083			22.88	%

⁽¹⁾ The spaced leased to Squire Patton Boggs (USA) LLP is currently subleased to Advisory Board Company, who has signed an extension to make the lease coterminous with the remaining Advisory Board Company leases expiring on May 31, 2019.

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Industry Diversification
September 30, 2016

Industry Classification (NAICS)	Annualized Base Rental Revenue				Percentage of Aggregate Annualized Rent			Aggregate Rentable Square Feet			Percentage of Aggregate Square Feet
Office:
Professional, Scientific, and Technical Services	$	61,189,674			48.06	%		1,683,820			50.91	%
Finance and Insurance	21,944,430				17.23	%		481,340			14.55	%
Other Services (except Public Administration)	12,116,628				9.52	%		304,639			9.21	%
Information	7,878,273				6.19	%		191,434			5.79	%
Health Care and Social Assistance	5,040,861				3.96	%		149,949			4.53	%
Wholesale Trade	4,466,277				3.51	%		103,177			3.12	%
Educational Services	4,452,864				3.50	%		140,917			4.26	%
Administrative and Support and Waste Management and Remediation Services	2,123,473				1.67	%		48,891			1.48	%
Public Administration	2,069,409				1.63	%		41,968			1.27	%
Real Estate and Rental and Leasing	1,821,467				1.43	%		44,132			1.33	%
Accommodation and Food Services	1,480,061				1.16	%		34,771			1.05	%
Construction	871,891				0.68	%		27,363			0.83	%
Other	1,875,454				1.46	%		55,351			1.67	%
Total	$	127,330,762			100.00	%		3,307,752			100.00	%
Retail:
Wholesale Trade	$	28,446,715			58.96	%		1,541,393			71.69	%
Accommodation and Food Services	7,270,508				15.07	%		233,372			10.85	%
Finance and Insurance	4,116,897				8.53	%		54,899			2.55	%
Other Services (except Public Administration/Government)	3,294,766				6.83	%		100,966			4.70	%
Arts, Entertainment, and Recreation	1,960,747				4.06	%		115,586			5.38	%
Health Care and Social Assistance	1,190,234				2.47	%		31,602			1.47	%
Manufacturing	502,322				1.04	%		17,547			0.82	%
Educational Services	422,188				0.87	%		25,598			1.19	%
Information (Broadcasting, Publishing, Telecommunications)	354,305				0.73	%		8,347			0.39	%
Other	692,921				1.44	%		20,740			0.96	%
Total	$	48,251,603			100.00	%		2,150,050			100.00	%

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Lease Expirations
September 30, 2016

Year		Number of Leases			Rentable Square Feet			Percent of Rentable Square Feet			Annualized Rent (1)				Average Rental Rate				Percent of Annualized Rent (1)
Office:
2016		11			40,154			1.14	%		$	1,578,306			$	39.31			1.03	%
2017		51			432,843			12.25	%		17,571,662				40.60				11.47	%
2018		45			280,219			7.93	%		11,885,227				42.41				7.76	%
2019		57			592,344			16.76	%		23,475,382				39.63				15.32	%
2020		43			411,272			11.64	%		19,913,473				48.42				13.00	%
2021 and thereafter		200			1,776,877			50.28	%		78,802,207				44.35				51.42	%
		407			3,533,709			100.00	%		$	153,226,257			43.36				100.00	%
Retail:
2016		3			16,978			0.78	%		$	505,140			$	29.75			0.95	%
2017		41			228,432			10.49	%		6,540,380				28.63				12.29	%
2018		36			333,599			15.32	%		4,813,345				14.43				9.04	%
2019		33			160,133			7.35	%		4,539,780				28.35				8.53	%
2020		39			432,969			19.89	%		7,681,963				17.74				14.43	%
2021 and thereafter		136			1,005,089			46.17	%		29,138,612				28.99				54.76	%
		288			2,177,200			100.00	%		$	53,219,220			24.44				100.00	%
Total:
2016		14			57,132			1.00	%		$	2,083,446			$	36.47			1.01	%
2017		92			661,275			11.58	%		24,112,042				36.46				11.68	%
2018		81			613,818			10.75	%		16,698,572				27.20				8.09	%
2019		90			752,477			13.18	%		28,015,162				37.23				13.57	%
2020		82			844,241			14.78	%		27,595,436				32.69				13.37	%
2021 and thereafter		336			2,781,966			48.71	%		107,940,819				38.80				52.28	%
		695			5,710,909			100.00	%		$	206,445,477			36.15				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
September 30, 2016

PROPERTIES		LOCATION		YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET
Office Buildings
515 King Street		Alexandria, VA		1992		1966		75,000
Courthouse Square		Alexandria, VA		2000		1979		118,000
Braddock Metro Center		Alexandria, VA		2011		1985		348,000
1600 Wilson Boulevard		Arlington, VA		1997		1973		169,000
Fairgate at Ballston		Arlington, VA		2012		1988		143,000
Monument II		Herndon, VA		2007		2000		208,000
925 Corporate Drive		Stafford, VA		2010		2007		134,000
1000 Corporate Drive		Stafford, VA		2010		2009		136,000
Silverline Center		Tysons, VA		1997		1972/1986/1999/2014		545,000
John Marshall II		Tysons, VA		2011		1996/2010		223,000
1901 Pennsylvania Avenue		Washington, DC		1977		1960		102,000
1220 19th Street		Washington, DC		1995		1976		103,000
1776 G Street		Washington, DC		2003		1979		265,000
2000 M Street		Washington, DC		2007		1971		231,000
2445 M Street		Washington, DC		2008		1986		290,000
1140 Connecticut Avenue		Washington, DC		2011		1966		183,000
1227 25th Street		Washington, DC		2011		1988		136,000
Army Navy Club Building		Washington, DC		2014		1912/1987		108,000
1775 Eye Street		Washington, DC		2014		1964		186,000
Subtotal								3,703,000

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Schedule of Properties (continued)
September 30, 2016

PROPERTIES		LOCATION		YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET
Retail Centers
Bradlee Shopping Center		Alexandria, VA		1984		1955		171,000
Shoppes of Foxchase		Alexandria, VA		1994		1960/2006		134,000
800 S. Washington Street		Alexandria, VA		1998/2003		1955/1959		46,000
Concord Centre		Springfield, VA		1973		1960		76,000
Gateway Overlook		Columbia, MD		2010		2007		220,000
Frederick County Square		Frederick, MD		1995		1973		227,000
Frederick Crossing		Frederick, MD		2005		1999/2003		295,000
Centre at Hagerstown		Hagerstown, MD		2002		2000		331,000
Olney Village Center		Olney, MD		2011		1979/2003		199,000
Randolph Shopping Center		Rockville, MD		2006		1972		82,000
Montrose Shopping Center		Rockville, MD		2006		1970		145,000
Takoma Park		Takoma Park, MD		1963		1962		51,000
Westminster		Westminster, MD		1972		1969		150,000
Wheaton Park		Wheaton, MD		1977		1967		74,000
Chevy Chase Metro Plaza		Washington, DC		1985		1975		50,000
Spring Valley Village		Washington, DC		2014		1941/1950		78,000
Subtotal								2,329,000

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Schedule of Properties (continued)
September 30, 2016

PROPERTIES		LOCATION		YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET (1)
Multifamily Buildings / # units
Clayborne / 74		Alexandria, VA		2008		2008		60,000
Riverside Apartments / 1,222		Alexandria, VA		2016		1971		1,266,000
Park Adams / 200		Arlington, VA		1969		1959		173,000
Bennett Park / 224		Arlington, VA		2007		2007		214,000
The Paramount / 135		Arlington, VA		2013		1984		141,000
The Maxwell / 163		Arlington, VA		2014		2014		139,000
The Wellington / 711		Arlington, VA		2015		1960		842,000
Roosevelt Towers / 191		Falls Church, VA		1965		1964		170,000
The Ashby at McLean / 256		McLean, VA		1996		1982		274,000
Bethesda Hill Apartments / 195		Bethesda, MD		1997		1986		225,000
Walker House Apartments / 212		Gaithersburg, MD		1996		1971/2003		157,000
3801 Connecticut Avenue / 307		Washington, DC		1963		1951		178,000
Kenmore Apartments / 374		Washington, DC		2008		1948		268,000
Yale West / 216		Washington, DC		2014		2011		238,000
Subtotal (4,480 units)								4,345,000
TOTAL								10,377,000
(1) Multifamily buildings are presented in gross square feet.

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Supplemental Definitions
September 30, 2016

Adjusted EBITDA (a non-GAAP measure) is earnings attributable to the controlling interest before interest expense, taxes, depreciation, amortization, real estate impairment, casualty gain, gain on sale of real estate, gain/loss on extinguishment of debt, severance expense, relocation expense, acquisition and structuring expenses 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, severance expense, relocation expense, acquisition and structuring expenses 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.

NAREIT Funds from operations ("NAREIT FFO") is defined by 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, impairment of depreciable real estate and real estate depreciation and amortization. We consider NAREIT 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 NAREIT FFO more accurately provides investors an indication of our ability to incur and service debt, make capital expenditures and fund other needs. NAREIT FFO is a non-GAAP measure.

Core Funds From Operations ("Core FFO") is calculated by adjusting NAREIT 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) expenses related to acquisition and structuring activities, (3) executive transition costs and severance expense related to corporate reorganization and related to executive retirements or resignations, (4) property impairments, casualty gains and losses, and gains or losses on sale not already excluded from NAREIT 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 NAREIT FFO (1) recurring expenditures, tenant improvements and leasing costs, that are capitalized and amortized and are necessary to maintain our properties and revenue stream (excluding items contemplated prior to acquisition or associated with development / redevelopment of a property) 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 performance 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, casualty gains and losses, and gains or losses on sale 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 performance 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.

Net Operating Income (“NOI”) is a non-GAAP measure defined as real estate rental revenue less real estate expenses. NOI is calculated as net income, less non-real estate revenue and the results of discontinued operations (including the gain on sale, if any), plus interest expense, depreciation and amortization, general and administrative expenses, acquisition costs, real estate impairment, casualty gains and losses, and gain or loss on extinguishment of debt. We also present NOI on a cash basis ("Cash NOI") which is calculated as NOI less the impact of straightlining of rent and amortization of market intangibles. We provide NOI as a supplement to net income calculated in accordance with GAAP. As such, it should not be considered an alternative to net income as an indication of our operating performance. It is the primary performance measure we use to assess the results of our operations at the property level.

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Physical occupancy is calculated as occupied square footage as a percentage of total square footage as of the last day of that period. Multifamily unit basis physical occupancy is calculated as occupied units as a percentage of total units 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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