Washington Real Estate Investment Trust
	First Quarter 2017
	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

First Quarter 2017

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.

First Quarter 2017 Highlights

Net income attributable to controlling interests was $6.6 million, or $0.09 per diluted share, compared to $2.4 million, or $0.03 per diluted share, in the first quarter 2016. NAREIT Funds from Operations (FFO) of $32.7 million, or $0.43 per diluted share, compared to $28.4 million, or $0.41 per diluted share in the first quarter of 2016. Additional highlights are as below:

•	Reported Core FFO of $0.44 per diluted share

•	Grew same-store Net Operating Income (NOI) by 10.4% year-over-year

•	Grew same-store NOI by 15.6% for the office, 7.9% for the retail and 4.0% for the multifamily portfolios year-over-year

•	Increased same-store ending occupancy by 320 basis points year-over-year to 93.7%

•	Announced the acquisition of Watergate 600, a 309,000 square foot office building in Washington, DC for $135.0 million in a transaction completed subsequent to quarter-end

•	Raised the bottom and top ends of the 2017 Core FFO guidance range by two cents to $1.76 to $1.84 from $1.74 to $1.82 per diluted share

Of the 195,000 square feet of commercial leases signed, there were 44,000 square feet of new leases and 151,000 square feet of renewal leases. New leases had an average rental rate increase of 25.6% over expiring lease rates and a weighted average lease term of 8.1 years. Commercial tenant improvement costs were $53.84 per square foot and leasing commissions were $17.72 per square foot for new leases. Renewal leases had an average rental rate increase of 22.7% from expiring lease rates and a weighted average lease term of 9.9 years. Commercial tenant improvement costs were $64.76 per square foot and leasing commissions were $20.58 per square foot for renewal leases.

On April 4, 2017, Washington REIT completed the acquisition of Watergate 600, a 309,000 square foot iconic office building on the Potomac riverfront in Washington, DC for $135.0 million in a transaction that is structured to include the issuance of units for a portion of the purchase price.

In January 2017, Washington REIT refinanced pre-payable and maturing secured debt by drawing the remaining $50.0 million on the seven-year $150.0 million unsecured term loan, which is scheduled to mature in July, 2023. Washington REIT entered into a forward swap from floating interest rates to a 2.86% all-in fixed interest rate for $150.0 million commencing on March 31, 2017.

Year-to-date, the Company issued 2,070,000 shares at an average price of $31.44 per share through the Company’s At-the-Market (ATM) program, raising gross proceeds of $65.1 million to maintain balance sheet strength.

As of March 31, 2017, 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

First Quarter 2017

Net Operating Income Contribution by Sector - First Quarter 2017

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 2016 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
March 31, 2017
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 Ending Occupancy Levels by Sector	17
	Same-Store Portfolio and Overall Economic Occupancy Levels by Sector	18
Growth and Strategy
	Development/Re-Development Summary	19
Tenant Analysis
	Commercial Leasing Summary - New Leases	20
	Commercial Leasing Summary - Renewal Leases	21
	10 Largest Tenants - Based on Annualized Base Rent	22
	Industry Diversification	23
	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)

	Three Months Ended
OPERATING RESULTS	3/31/2017				12/31/2016				9/30/2016				6/30/2016				3/31/2016
Real estate rental revenue	$	77,501			$	76,952			$	79,770			$	79,405			$	77,137
Real estate expenses	(27,863		)		(28,940		)		(29,164		)		(28,175		)		(28,734		)
	49,638				48,012				50,606				51,230				48,403
Real estate depreciation and amortization	(26,069		)		(26,302		)		(30,905		)		(25,161		)		(26,038		)
Income from real estate	23,569				21,710				19,701				26,069				22,365
Interest expense	(11,405		)		(11,773		)		(13,173		)		(13,820		)		(14,360		)
Other income	77				92				83				83				39
Acquisition costs	—				—				—				(1,024		)		(154		)
Casualty gain	—				—				—				676				—
Gain on sale of real estate	—				—				77,592				24,112				—
General and administrative	(5,626		)		(4,527		)		(4,539		)		(4,968		)		(5,511		)
Income tax (expense) benefit	—				(76		)		(2		)		693				—
Net income	6,615				5,426				79,662				31,821				2,379
Less: Net loss from noncontrolling interests	19				19				12				15				5
Net income attributable to the controlling interests	$	6,634			$	5,445			$	79,674			$	31,836			$	2,384
Per Share Data:
Net income attributable to the controlling interests	$	0.09			$	0.07			$	1.07			$	0.44			$	0.03
Fully diluted weighted average shares outstanding	74,966				74,779				74,133				71,912				68,488
Percentage of Revenues:
Real estate expenses	36.0		%		37.6		%		36.6		%		35.5		%		37.3		%
General and administrative	7.3		%		5.9		%		5.7		%		6.3		%		7.1		%
Ratios:
Adjusted EBITDA / Interest expense	3.9		x		3.7		x		3.5		x		3.4		x		3.0		x
Net income attributable to the controlling interests / Real estate rental revenue	8.6		%		7.1		%		99.9		%		40.1		%		3.1		%

4

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Consolidated Balance Sheets (In thousands) (Unaudited)

	3/31/2017				12/31/2016				9/30/2016				6/30/2016				3/31/2016
Assets
Land	$	573,315			$	573,315			$	573,315			$	573,315			$	561,256
Income producing property	2,123,807				2,112,088				2,092,201				2,072,166				2,095,306
	2,697,122				2,685,403				2,665,516				2,645,481				2,656,562
Accumulated depreciation and amortization	(680,231		)		(657,425		)		(634,945		)		(613,194		)		(714,689		)
Net income producing property	2,016,891				2,027,978				2,030,571				2,032,287				1,941,873
Development in progress, including land held for development	42,914				40,232				37,463				35,760				27,313
Total real estate held for investment, net	2,059,805				2,068,210				2,068,034				2,068,047				1,969,186
Investment in real estate held for sale, net	—				—				—				41,704				—
Cash and cash equivalents	15,214				11,305				8,588				22,379				23,575
Restricted cash	1,430				6,317				10,091				11,054				9,889
Rents and other receivables, net of allowance for doubtful accounts	69,038				64,319				62,989				58,970				63,863
Prepaid expenses and other assets	108,622				103,468				100,788				99,150				118,790
Other assets related to properties sold or held for sale	—				—				—				5,147				—
Total assets	$	2,254,109			$	2,253,619			$	2,250,490			$	2,306,451			$	2,185,303
Liabilities
Notes payable	$	893,424			$	843,084			$	744,063			$	743,769			$	743,475
Mortgage notes payable	97,814				148,540				251,232				252,044				333,853
Lines of credit	123,000				120,000				125,000				269,000				215,000
Accounts payable and other liabilities	50,684				46,967				54,629				52,722				56,348
Dividend payable	—				22,414				—				—				—
Advance rents	11,948				11,750				10,473				10,178				11,589
Tenant security deposits	9,002				8,802				8,634				8,290				9,604
Liabilities related to properties sold or held for sale	—				—				—				2,338				—
Total liabilities	1,185,872				1,201,557				1,194,031				1,338,341				1,369,869
Equity
Preferred shares; $0.01 par value; 10,000 shares authorized	—				—				—				—				—
Shares of beneficial interest, $0.01 par value; 100,000 shares authorized	757				746				745				737				683
Additional paid-in capital	1,400,093				1,368,636				1,368,438				1,338,101				1,193,750
Distributions in excess of net income	(342,020		)		(326,047		)		(309,042		)		(366,352		)		(376,041		)
Accumulated other comprehensive loss	8,346				7,611				(4,870		)		(5,609		)		(4,225		)
Total shareholders' equity	1,067,176				1,050,946				1,055,271				966,877				814,167
Noncontrolling interests in subsidiaries	1,061				1,116				1,188				1,233				1,267
Total equity	1,068,237				1,052,062				1,056,459				968,110				815,434
Total liabilities and equity	$	2,254,109			$	2,253,619			$	2,250,490			$	2,306,451			$	2,185,303

5

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

	Three Months Ended
	3/31/2017				12/31/2016				9/30/2016				6/30/2016				3/31/2016
Funds from operations(1)
Net income	$	6,615			$	5,426			$	79,662			$	31,821			$	2,379
Real estate depreciation and amortization	26,069				26,302				30,905				25,161				26,038
Gain on sale of depreciable real estate	—				—				(77,592		)		(24,112		)		—
NAREIT funds from operations (FFO)	32,684				31,728				32,975				32,870				28,417
Casualty (gain)	—				—				—				(676		)		—
Severance expense	—				—				242				126				460
Relocation expense	—				—				16				—				—
Acquisition and structuring expenses	215				118				37				1,107				259
Core FFO (1)	$	32,899			$	31,846			$	33,270			$	33,427			$	29,136
Allocation to participating securities(2)	(78		)		(32		)		(200		)		(99		)		(90		)
NAREIT FFO per share - basic	$	0.44			$	0.42			$	0.44			$	0.46			$	0.41
NAREIT FFO per share - fully diluted	$	0.43			$	0.42			$	0.44			$	0.46			$	0.41
Core FFO per share - fully diluted	$	0.44			$	0.43			$	0.45			$	0.46			$	0.42
Common dividend per share	$	0.30			$	0.30			$	0.30			$	0.30			$	0.30
Average shares - basic	74,854				74,592				73,994				71,719				68,301
Average shares - fully diluted	74,966				74,779				74,133				71,912				68,488
(1) See "Supplemental Definitions" on page 29 of this supplemental for the definitions of FFO and Core FFO.
(2)  Adjustment to the numerators for FFO and Core FFO per share calculations when applying the two-class method for calculating EPS.

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

	Three Months Ended
	3/31/2017				12/31/2016				9/30/2016				6/30/2016				3/31/2016
Funds available for distribution (FAD)(1)
NAREIT FFO	$	32,684			$	31,728			$	32,975			$	32,870			$	28,417
Tenant improvements and incentives	(5,942		)		(4,822		)		(4,889		)		(7,639		)		(1,543		)
External and internal leasing commissions	(2,523		)		(3,403		)		(1,251		)		(3,350		)		(1,015		)
Recurring capital improvements	(405		)		(1,660		)		(1,146		)		(1,237		)		(908		)
Straight-line rent, net	(849		)		(603		)		(682		)		(880		)		(683		)
Non-cash fair value interest expense	(302		)		47				46				44				42
Non-real estate depreciation and amortization of debt costs	899				873				846				876				950
Amortization of lease intangibles, net	850				900				898				853				943
Amortization and expensing of restricted share and unit compensation	1,130				737				292				850				1,519
Funds available for distribution (FAD)	25,542				23,797				27,089				22,387				27,722
Non-share-based severance expense	—				—				242				126				39
Relocation expense	—				—				16				—				—
Acquisition and structuring expenses	215				118				37				1,107				259
Casualty (gain)	—				—				—				(676		)		—
Core FAD (1)	$	25,757			$	23,915			$	27,384			$	22,944			$	28,020
(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)

	Three Months Ended
	3/31/2017				12/31/2016				9/30/2016				6/30/2016				3/31/2016
Adjusted EBITDA (1)
Net income	$	6,615			$	5,426			$	79,662			$	31,821			$	2,379
Add:
Interest expense	11,405				11,773				13,173				13,820				14,360
Real estate depreciation and amortization	26,069				26,302				30,905				25,161				26,038
Income tax expense (benefit)	—				76				2				(693		)		—
Casualty (gain)	—				—				—				(676		)		—
Non-real estate depreciation	116				119				101				152				152
Severance expense	—				—				242				126				460
Relocation expense	—				—				16				—				—
Acquisition and structuring expenses	215				118				37				1,107				259
Less:
Net loss (gain) on sale of real estate	—				—				(77,592		)		(24,112		)		—
Adjusted EBITDA	$	44,420			$	43,814			$	46,546			$	46,706			$	43,648
(1) Adjusted EBITDA is earnings before interest expense, taxes, depreciation, amortization, gain on sale of real estate, casualty and real estate impairment, gain/loss on extinguishment of debt, severance expense, relocation expense, acquisition and structuring expense, 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.

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Long Term Debt Analysis ($'s in thousands)

	3/31/2017				12/31/2016				9/30/2016				6/30/2016				3/31/2016
Balances Outstanding
Secured
Mortgage note payable, net	$	97,814			$	148,540			$	251,232			$	252,044			$	333,853
Unsecured
Fixed rate bonds	595,315				595,067				594,905				594,658				594,411
Term loans	298,109				248,017				149,158				149,111				149,064
Credit facility	123,000				120,000				125,000				269,000				215,000
Unsecured total	1,016,424				963,084				869,063				1,012,769				958,475
Total	$	1,114,238			$	1,111,624			$	1,120,295			$	1,264,813			$	1,292,328
Weighted Average Interest Rates
Secured
Mortgage note payable, net	4.5		%		4.0		%		5.3		%		5.3		%		5.4		%
Unsecured
Fixed rate bonds	4.7		%		4.7		%		4.7		%		4.7		%		4.7		%
Term loans (1)	2.8		%		2.6		%		2.7		%		2.7		%		2.7		%
Credit facility	2.0		%		1.6		%		1.5		%		1.4		%		1.4		%
Unsecured total	3.8		%		3.8		%		3.9		%		3.6		%		3.7		%
Weighted Average	3.9		%		3.8		%		4.2		%		3.9		%		4.1		%
(1) Washington REIT has entered into interest rate swaps to effectively fix the floating interest rates on its term loans (see page 10 of this Supplemental)
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
2017	$	—			$	—			$	—			$	—
2018	—				—				—				—
2019	31,280				—				123,000			(1)	154,280				2.7%
2020	—				250,000				—				250,000				5.1%
2021	—				150,000			(2)	—				150,000				2.7%
2022	44,517				300,000				—				344,517				4.0%
2023	—				150,000			(3)	—				150,000				2.8%
2024	—				—				—				—
2025	—				—				—				—
2026	—				—				—				—
2027	—				—				—				—
Thereafter	—				50,000				—				50,000				7.4%
Scheduled principal payments	$	75,797			$	900,000			$	123,000			$	1,098,797			3.9%
Scheduled amortization payments	18,342				—				—				18,342				4.8%
Net discounts/premiums	4,052				(1,873		)		—				2,179
Loan costs, net of amortization	(377		)		(4,703		)		—				(5,080		)
Total maturities	$	97,814			$	893,424			$	123,000			$	1,114,238			3.9%

Weighted average maturity =4.8 years

⁽¹⁾ Maturity date for credit facility may be extended for up to two additional 6-month periods at Washington REIT's option.

⁽²⁾ Washington REIT entered into an interest rate swap to effectively fix a LIBOR plus 110 basis points floating interest rate to a 2.72% all-in fixed interest rate commencing October 15, 2015.

⁽³⁾ Washington REIT entered into interest rate swaps to effectively fix a LIBOR plus 165 basis points floating interest rate to a 2.86% all-in fixed interest rate commencing March 31, 2017.

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Debt Covenant Compliance

	Unsecured Notes Payable					Unsecured Line of Credit and Term Loans
	Quarter Ended March 31, 2017			Covenant		Quarter Ended March 31, 2017			Covenant
% of Total Indebtedness to Total Assets(1)	39.6	%		≤ 65.0%		N/A			N/A
Ratio of Income Available for Debt Service to Annual Debt Service	3.9			≥ 1.5		N/A			N/A
% of Secured Indebtedness to Total Assets(1)	3.5	%		≤ 40.0%		N/A			N/A
Ratio of Total Unencumbered Assets(2) to Total Unsecured Indebtedness	2.6			≥ 1.5		N/A			N/A
% of Net Consolidated Total Indebtedness to Consolidated Total Asset Value(3)	N/A			N/A		34.5	%		≤ 60.0%
Ratio of Consolidated Adjusted EBITDA(4) to Consolidated Fixed Charges(5)	N/A			N/A		3.77			≥ 1.50
% of Consolidated Secured Indebtedness to Consolidated Total Asset Value(3)	N/A			N/A		3.1	%		≤ 40.0%
% of Consolidated Unsecured Indebtedness to Unencumbered Pool Value(6)	N/A			N/A		33.5	%		≤ 60.0%
Ratio of Unencumbered Adjusted Net Operating Income to Consolidated Unsecured Interest Expense	N/A			N/A		4.76			≥ 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.

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Capital Analysis (In thousands, except per share amounts)

	Three Months Ended
	3/31/2017				12/31/2016				9/30/2016				6/30/2016				3/31/2016
Market Data
Shares Outstanding	$	75,702			$	74,606			$	74,579			$	73,651			$	68,326
Market Price per Share	31.28				32.69				31.12				31.46				29.21
Equity Market Capitalization	$	2,367,959			$	2,438,870			$	2,320,898			$	2,317,060			$	1,995,802
Total Debt	$	1,114,238			$	1,111,624			$	1,120,295			$	1,264,813			$	1,292,328
Total Market Capitalization	$	3,482,197			$	3,550,494			$	3,441,193			$	3,581,873			$	3,288,130
Total Debt to Market Capitalization	0.32		:1		0.31		:1		0.33		:1		0.35		:1		0.39		:1
Earnings to Fixed Charges(1)	1.6x				1.4x				6.9x				3.3x				1.2x
Debt Service Coverage Ratio(2)	3.6x				3.4x				3.3x				3.2x				2.8x
Dividend Data	Three Months Ended
	3/31/2017				12/31/2016				9/30/2016				6/30/2016				3/31/2016
Total Dividends Declared	$	22,607			$	22,414			$	22,365			$	22,147			$	20,644
Common Dividend Declared per Share	$	0.30			$	0.30			$	0.30			$	0.30			$	0.30
(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 and June 30, 2016 include gains on the sale of real estate of $77.6 million and $24.1 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

	Three Months Ended March 31,											Rental Rate
	2017				2016				% Change			Growth
Cash Basis:
Multifamily	$	11,116			$	10,698			3.9	%		1.2	%
Office	21,474				18,651				15.1	%		0.5	%
Retail	11,508				10,653				8.0	%		0.5	%
Overall Same-Store Portfolio (1)	$	44,098			$	40,002			10.2	%		0.7	%
GAAP Basis:
Multifamily	$	11,112			$	10,686			4.0	%		1.3	%
Office	21,311				18,443				15.6	%		1.0	%
Retail	11,842				10,974				7.9	%		0.6	%
Overall Same-Store Portfolio (1)	$	44,265			$	40,103			10.4	%		1.0	%

(1)  Non same-store properties were:

Acquisitions:

Multifamily - Riverside Apartments

Development/Redevelopment:

Office - The Army Navy Building and Braddock Metro Center

Sold properties:

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

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

	Three Months Ended March 31, 2017
	Multifamily				Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	18,256			$	34,082			$	15,705			$	—			$	68,043
Non same-store - acquired and in development (1)	5,513				3,945				—				—				9,458
Total	23,769				38,027				15,705				—				77,501
Real estate expenses
Same-store portfolio	7,144				12,771				3,863				—				23,778
Non same-store - acquired and in development (1)	2,442				1,643				—				—				4,085
Total	9,586				14,414				3,863				—				27,863
Net Operating Income (NOI)
Same-store portfolio	11,112				21,311				11,842				—				44,265
Non same-store - acquired and in development (1)	3,071				2,302				—				—				5,373
Total	$	14,183			$	23,613			$	11,842			$	—			$	49,638
Same-store portfolio NOI (from above)	$	11,112			$	21,311			$	11,842			$	—			$	44,265
Straight-line revenue, net for same-store properties	3				(617		)		(156		)		—				(770		)
FAS 141 Min Rent	1				49				(227		)		—				(177		)
Amortization of lease intangibles for same-store properties	—				731				49				—				780
Same-store portfolio cash NOI	$	11,116			$	21,474			$	11,508			$	—			$	44,098
Reconciliation of NOI to net income
Total NOI	$	14,183			$	23,613			$	11,842			$	—			$	49,638
Depreciation and amortization	(7,490		)		(14,672		)		(3,707		)		(200		)		(26,069		)
General and administrative	—				—				—				(5,626		)		(5,626		)
Interest expense	(978		)		(148		)		(194		)		(10,085		)		(11,405		)
Other income	—				—				—				77				77
Net income (loss)	5,715				8,793				7,941				(15,834		)		6,615
Net loss attributable to noncontrolling interests	—				—				—				19				19
Net income (loss) attributable to the controlling interests	$	5,715			$	8,793			$	7,941			$	(15,815	)		$	6,634
(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 March 31, 2016
	Multifamily				Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	17,939			$	30,732			$	15,380			$	—			$	64,051
Non same-store - acquired and in development (1)	—				13,086				—				—				13,086
Total	17,939				43,818				15,380				—				77,137
Real estate expenses
Same-store portfolio	7,253				12,289				4,406				—				23,948
Non same-store - acquired and in development (1)	—				4,786								—				4,786
Total	7,253				17,075				4,406				—				28,734
Net Operating Income (NOI)
Same-store portfolio	10,686				18,443				10,974				—				40,103
Non same-store - acquired and in development (1)	—				8,300				—				—				8,300
Total	$	10,686			$	26,743			$	10,974			$	—			$	48,403
Same-store portfolio NOI (from above)	$	10,686			$	18,443			$	10,974			$	—			$	40,103
Straight-line revenue, net for same-store properties	11				(490		)		(116		)		—				(595		)
FAS 141 Min Rent	1				113				(254		)		—				(140		)
Amortization of lease intangibles for same-store properties	—				585				49				—				634
Same-store portfolio cash NOI	$	10,698			$	18,651			$	10,653			$	—			$	40,002
Reconciliation of NOI to net income
Total NOI	$	10,686			$	26,743			$	10,974			$	—			$	48,403
Depreciation and amortization	(5,403		)		(16,783		)		(3,609		)		(243		)		(26,038		)
General and administrative	—				—				—				(5,511		)		(5,511		)
Interest expense	(2,243		)		(2,527		)		(216		)		(9,374		)		(14,360		)
Other income	—				—				—				39				39
Acquisition costs	—				—				—				(154		)		(154		)
Net income (loss)	3,040				7,433				7,149				(15,243		)		2,379
Net income attributable to noncontrolling interests	—				—				—				5				5
Net income (loss) attributable to the controlling interests	$	3,040			$	7,433			$	7,149			$	(15,238	)		$	2,384
(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
		Q1 2017
	DC
	Multifamily	5.9	%
	Office	24.1	%
	Retail	1.9	%
		31.9	%
	Maryland
	Multifamily	2.3	%
	Retail	14.4	%
		16.7	%
	Virginia
	Multifamily	20.3	%
	Office	23.5	%
	Retail	7.6	%
		51.4	%
	Total Portfolio	100.0	%

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Same-Store Portfolio and Overall Ending Occupancy Levels by Sector

		Ending Occupancy - Same-Store Properties (1), (2)
Sector		3/31/2017			12/31/2016			9/30/2016			6/30/2016			3/31/2016
Multifamily (calculated on a unit basis)		94.8	%		95.6	%		92.4	%		94.6	%		95.2	%
Multifamily		94.2	%		95.2	%		94.8	%		94.2	%		94.5	%
Office		93.1	%		91.7	%		91.0	%		86.9	%		86.3	%
Retail		93.8	%		95.7	%		95.6	%		92.1	%		91.2	%
Overall Portfolio		93.7	%		94.0	%		93.6	%		90.8	%		90.5	%
		Ending Occupancy - All Properties (2)
Sector		3/31/2017			12/31/2016			9/30/2016			6/30/2016			3/31/2016
Multifamily (calculated on a unit basis)		94.6	%		94.7	%		94.5	%		94.7	%		95.2	%
Multifamily		94.2	%		94.5	%		94.2	%		94.4	%		94.5	%
Office		92.4	%		91.1	%		90.5	%		87.5	%		87.8	%
Retail		93.8	%		95.7	%		95.6	%		92.1	%		91.2	%
Overall Portfolio		93.5	%		93.5	%		93.2	%		91.1	%		90.6	%

(1)  Non same-store properties were:

Acquisitions:

Multifamily - Riverside Apartments

Development/Redevelopment:

Office - The Army Navy Building and Braddock Metro Center

Sold properties:

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

(2) Ending 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 ending 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		3/31/2017			12/31/2016			9/30/2016			6/30/2016			3/31/2016
Multifamily		94.8	%		95.1	%		95.2	%		95.0	%		93.9	%
Office		93.6	%		91.9	%		89.9	%		85.7	%		84.5	%
Retail		92.1	%		93.6	%		91.8	%		89.3	%		89.7	%
Overall Portfolio		93.6	%		93.2	%		91.8	%		89.0	%		88.2	%
		Economic Occupancy - All Properties
Sector		3/31/2017			12/31/2016			9/30/2016			6/30/2016			3/31/2016
Multifamily		94.0	%		94.4	%		94.6	%		95.3	%		93.9	%
Office		92.0	%		91.1	%		89.5	%		86.6	%		86.9	%
Retail		92.1	%		93.6	%		91.8	%		89.3	%		89.7	%
Overall Portfolio		92.7	%		92.6	%		91.5	%		89.3	%		89.0	%

(1)  Non same-store properties were:

Acquisitions:

Multifamily - Riverside Apartments

Development/Redevelopment:

Office - The Army Navy Building and Braddock Metro Center

Sold properties:

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

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Development/Re-development Summary

Property and Location	Total Rentable Square Feet or # of Units	Anticipated Total Cash Cost (1)     (in thousands)			Cash Cost to Date (1) (in thousands)			Anticipated Construction Completion Date	Leased % as of 3/31/2017
Development Summary
Trove (Wellington land parcel), Arlington, VA	401 units	$	122,252		$	18,911		third quarter 2019 (2)	N/A
Re-development Summary
The Army Navy Building (3), Washington DC	108,000 square feet	$	4,045		$	2,203		second quarter 2017	55%
Spring Valley Village, Washington DC	14,000 additional square feet	$	4,496		$	887		fourth quarter 2017	N/A

⁽¹⁾ Represents anticipated/actual cash expenditures, and excludes allocations of capitalized corporate overhead costs and interest.

⁽²⁾ This development project has two phases: Phase I consists of two buildings totaling 226 units and a garage, with delivery of units anticipated to commence in third quarter 2019; Phase II consists of one building with 175 units, anticipated to commence in third quarter 2020.

⁽³⁾ 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

	1st Quarter 2017								4th Quarter 2016								3rd Quarter 2016								2nd Quarter 2016								1st Quarter 2016
Gross Leasing Square Footage
Office Buildings	36,102								39,047								60,538								28,154								32,249
Retail Centers	8,355								10,362								1,342								6,313								11,777
Total	44,457								49,409								61,880								34,467								44,026
Weighted Average Term (years)
Office Buildings	8.5								4.9								6.4								6.1								7.7
Retail Centers	6.2								9.2								8.3								8.0								9.8
Total	8.1								5.8								6.4								6.5								8.3
Weighted Average Free Rent Period (months) (1)
Office Buildings	9.1								3.0								6.1								5.9								7.5
Retail Centers	2.7								1.0								3.9								1.2								7.6
Total	8.0								2.5								6.1								5.3								7.5
Rental Rate Increases:	GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH
Rate on expiring leases
Office Buildings	$	32.50			$	33.83			$	40.36			$	42.92			$	39.31			$	39.01			$	34.80			$	35.43			$	30.91			$	31.78
Retail Centers	37.15				35.16				38.26				38.99				43.67				46.15				28.92				29.11				11.93				12.04
Total	$	33.37			$	34.08			$	39.92			$	42.10			$	39.40			$	39.17			$	33.73			$	34.27			$	25.83			$	26.50
Rate on new leases
Office Buildings	$	43.20			$	38.67			$	42.64			$	39.96			$	44.06			$	40.80			$	39.83			$	37.09			$	40.60			$	36.84
Retail Centers	36.39				34.46				44.14				40.37				60.89				55.00				28.13				26.45				16.22				14.45
Total	$	41.92			$	37.88			$	42.96			$	40.05			$	44.42			$	41.10			$	37.69			$	35.14			$	34.08			$	30.85
Percentage Increase
Office Buildings	33.0		%		14.3		%		5.7		%		(6.9		)%		12.1		%		4.6		%		14.5		%		4.7		%		31.4		%		15.9		%
Retail Centers	(2.1		)%		(2.0		)%		15.4		%		3.5		%		39.4		%		19.2		%		(2.7		)%		(9.1		)%		35.9		%		20.0		%
Total	25.6		%		11.1		%		7.6		%		(4.9		)%		12.7		%		4.9		%		11.8		%		2.5		%		31.9		%		16.4		%
	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	$	2,333,378			$	64.63			$	1,244,745			$	31.88			$	2,682,882			$	44.32			$	1,356,810			$	48.19			$	1,571,632			$	48.73
Retail Centers	60,030				7.18				307,953				29.72				—				—				111,840				17.72				203,276				17.26
Subtotal	$	2,393,408			$	53.84			$	1,552,698			$	31.43			$	2,682,882			$	43.36			$	1,468,650			$	42.61			$	1,774,908			$	40.31
Leasing Commissions (1)
Office Buildings	$	688,811			$	19.08			$	424,951			$	10.88			$	890,195			$	14.70			$	375,882			$	13.35			$	505,349			$	15.67
Retail Centers	98,930				11.84				212,162				20.48				39,380				29.34				80,461				12.75				103,983				8.83
Subtotal	$	787,741			$	17.72			$	637,113			$	12.89			$	929,575			$	15.02			$	456,343			$	13.24			$	609,332			$	13.84
Tenant Improvements and Leasing Commissions
Office Buildings	$	3,022,189			$	83.71			$	1,669,696			$	42.76			$	3,573,077			$	59.02			$	1,732,692			$	61.54			$	2,076,981			$	64.40
Retail Centers	158,960				19.02				520,115				50.20				39,380				29.34				192,301				30.47				307,259				26.09
Total	$	3,181,149			$	71.56			$	2,189,811			$	44.32			$	3,612,457			$	58.38			$	1,924,993			$	55.85			$	2,384,240			$	54.15

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Commercial Leasing Summary - Renewal Leases

	1st Quarter 2017								4th Quarter 2016								3rd Quarter 2016								2nd Quarter 2016								1st Quarter 2016
Gross Leasing Square Footage
Office Buildings	104,283								64,956								151,722								30,787								193,275
Retail Centers	47,279								65,934								74,535								9,076								27,243
Total	151,562								130,890								226,257								39,863								220,518
Weighted Average Term (years)
Office Buildings	11.8								4.9								3.7								4.6								7.1
Retail Centers	5.7								4.9								4.7								6.3								11.6
Total	9.9								4.9								4.0								5.0								7.6
Weighted Average Free Rent Period (months) (1)
Office Buildings	12.1								3.1								2.4								4.4								7.9
Retail Centers	—								—								—								0.7								5.1
Total	9.1								1.8								1.8								3.3								7.5
Rental Rate Increases:	GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH
Rate on expiring leases
Office Buildings	$	46.52			$	50.00			$	43.31			$	43.62			$	35.85			$	36.37			$	30.13			$	31.53			$	36.53			$	38.93
Retail Centers	32.13				33.61				27.52				27.66				25.03				25.28				32.56				47.14				24.53				26.67
Total	$	42.03			$	44.88			$	35.36			$	35.58			$	32.28			$	32.72			$	30.69			$	35.08			$	35.04			$	37.42
Rate on new leases
Office Buildings	$	58.13			$	50.05			$	46.84			$	44.18			$	42.20			$	40.38			$	34.42			$	32.44			$	40.55			$	37.12
Retail Centers	37.10				35.64				30.27				29.81				27.61				26.58				41.78				46.62				41.49				35.39
Total	$	51.57			$	45.56			$	38.49			$	36.94			$	37.39			$	35.84			$	36.10			$	35.67			$	40.66			$	36.90
Percentage Increase
Office Buildings	25.0		%		0.1		%		8.1		%		1.3		%		17.7		%		11.0		%		14.2		%		2.9		%		11.0		%		(4.7		)%
Retail Centers	15.5		%		6.0		%		10.0		%		7.8		%		10.3		%		5.1		%		28.3		%		(1.1		)%		69.2		%		32.7		%
Total	22.7		%		1.5		%		8.9		%		3.8		%		15.8		%		9.5		%		17.6		%		1.7		%		16.0		%		(1.4		)%
	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	$	9,703,224			$	93.05			$	1,068,629			$	16.45			$	2,243,523			$	14.79			$	153,365			$	4.98			$	6,945,781			$	35.94
Retail Centers	111,925				2.37				56,940				0.86				—				—				—				—				626,200				22.99
Subtotal	$	9,815,149			$	64.76			$	1,125,569			$	8.60			$	2,243,523			$	9.92			$	153,365			$	3.85			$	7,571,981			$	34.34
Leasing Commissions (1)
Office Buildings	$	2,981,750			$	28.59			$	735,713			$	11.33			$	780,080			$	5.14			$	198,223			$	6.44			$	2,801,717			$	14.50
Retail Centers	137,765				2.91				120,858				1.83				124,121				1.67				74,824				8.24				394,380				14.48
Subtotal	$	3,119,515			$	20.58			$	856,571			$	6.54			$	904,201			$	4.00			$	273,047			$	6.85			$	3,196,097			$	14.49
Tenant Improvements and Leasing Commissions
Office Buildings	$	12,684,974			$	121.64			$	1,804,342			$	27.78			$	3,023,603			$	19.93			$	351,588			$	11.42			$	9,747,498			$	50.44
Retail Centers	249,690				5.28				177,798				2.69				124,121				1.67				74,824				8.24				1,020,580				37.47
Total	$	12,934,664			$	85.34			$	1,982,140			$	15.14			$	3,147,724			$	13.92			$	426,412			$	10.70			$	10,768,078			$	48.83

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10 Largest Tenants - Based on Annualized Commercial Income
March 31, 2017

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		45			6.10	%		210,354			3.80	%
Advisory Board Company	2		26			4.02	%		199,762			3.61	%
Capital One	5		57			3.23	%		148,742			2.69	%
Engility Corporation	1		6			2.88	%		134,126			2.43	%
Squire Patton Boggs (USA) LLP (1)	1		1			2.70	%		110,566			2.00	%
Booz Allen Hamilton, Inc.	1		106			2.57	%		222,989			4.03	%
Epstein, Becker & Green, P.C.	1		129			1.66	%		60,544			1.10	%
Hughes Hubbard & Reed LLP	1		171			1.64	%		54,154			0.98	%
Alexandria City School Board	1		146			1.32	%		84,693			1.53	%
Morgan Stanley Smith Barney Financing	1		47			1.15	%		49,395			0.89	%
Total/Weighted Average			62			27.27	%		1,275,325			23.06	%

⁽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 - Office
March 31, 2017

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 (excluding legal services)	$	48,483,617			36.73	%		1,386,687			41.03	%
Finance and Insurance	22,706,665				17.20	%		487,270			14.42	%
Legal Services	14,546,311				11.02	%		316,601			9.37	%
Political, Civic and Social Organizations	12,289,870				9.31	%		303,565			8.98	%
Information	8,501,846				6.44	%		195,413			5.78	%
Health Care and Social Assistance	5,239,756				3.97	%		153,448			4.54	%
Educational Services	4,622,502				3.50	%		144,870			4.29	%
Wholesale Trade	4,517,830				3.42	%		103,177			3.05	%
Miscellaneous:
Administrative and Support and Waste Management and Remediation Services	2,964,591				2.25	%		68,960			2.04	%
Real Estate and Rental and Leasing	1,770,715				1.34	%		42,052			1.24	%
Accommodation and Food Services	1,731,972				1.31	%		43,599			1.29	%
Public Administration	1,646,056				1.25	%		45,928			1.36	%
Other	2,980,284				2.26	%		88,191			2.61	%
Total	$	132,002,015			100.00	%		3,379,761			100.00	%
Note: Federal government tenants comprise less than 1.0% of annualized base rental revenue.

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Industry Diversification - Retail

March 31, 2017

Industry Classification (NAICS)	Annualized Base Rental Revenue				Percentage of Aggregate Annualized Rent			Aggregate Rentable Square Feet			Percentage of Aggregate Square Feet
Retail:
Wholesale Trade	$	27,764,522			57.89	%		1,506,206			71.26	%
Accommodation and Food Services	7,375,128				15.38	%		223,634			10.58	%
Finance and Insurance	4,171,893				8.70	%		56,299			2.66	%
Other Services (except Public Administration/Government)	3,453,505				7.20	%		108,404			5.13	%
Arts, Entertainment, and Recreation	1,961,674				4.09	%		115,586			5.47	%
Health Care and Social Assistance	1,206,617				2.52	%		31,602			1.49	%
Miscellaneous:
Manufacturing	546,986				1.14	%		17,547			0.83	%
Educational Services	424,965				0.89	%		25,598			1.21	%
Information (Broadcasting, Publishing, Telecommunications)	354,305				0.74	%		8,347			0.39	%
Other	694,888				1.45	%		20,740			0.98	%
Total	$	47,954,483			100.00	%		2,113,963			100.00	%

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Lease Expirations
March 31, 2017

Year		Number of Leases			Rentable Square Feet			Percent of Rentable Square Feet			Annualized Rent (1)				Average Rental Rate				Percent of Annualized Rent (1)
Office:
2017		43			432,471			11.96	%		$	17,210,006			$	39.79			10.66	%
2018		43			225,386			6.24	%		9,384,424				41.64				5.81	%
2019		59			565,001			15.63	%		24,083,612				42.63				14.92	%
2020		45			398,525			11.02	%		19,308,917				48.45				11.96	%
2021		58			432,436			11.96	%		18,707,052				43.26				11.59	%
2022 and thereafter		167			1,561,005			43.19	%		72,761,161				46.61				45.06	%
		415			3,614,824			100.00	%		$	161,455,172			44.66				100.00	%
Retail:
2017		19			60,031			2.83	%		$	1,940,345			$	32.32			3.70	%
2018		36			334,268			15.74	%		4,828,539				14.45				9.22	%
2019		33			165,307			7.78	%		4,626,849				27.99				8.83	%
2020		41			437,339			20.59	%		7,831,476				17.91				14.95	%
2021		23			218,039			10.26	%		3,891,705				17.85				7.43	%
2022 and thereafter		137			909,353			42.80	%		29,273,893				32.19				55.87	%
		289			2,124,337			100.00	%		$	52,392,807			24.66				100.00	%
Total:
2017		62			492,502			8.58	%		$	19,150,351			$	38.88			8.96	%
2018		79			559,654			9.75	%		14,212,963				25.40				6.65	%
2019		92			730,308			12.73	%		28,710,461				39.31				13.43	%
2020		86			835,864			14.56	%		27,140,393				32.47				12.69	%
2021		81			650,475			11.33	%		22,598,757				34.74				10.57	%
2022 and thereafter		304			2,470,358			43.05	%		102,035,054				41.30				47.70	%
		704			5,739,161			100.00	%		$	213,847,979			37.26				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
March 31, 2017

PROPERTIES		LOCATION		YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET			Leased %
Office Buildings
515 King Street		Alexandria, VA		1992		1966		75,000			94	%
Courthouse Square		Alexandria, VA		2000		1979		118,000			94	%
Braddock Metro Center		Alexandria, VA		2011		1985		348,000			99	%
1600 Wilson Boulevard		Arlington, VA		1997		1973		170,000			100	%
Fairgate at Ballston		Arlington, VA		2012		1988		143,000			95	%
Monument II		Herndon, VA		2007		2000		208,000			84	%
925 Corporate Drive		Stafford, VA		2010		2007		134,000			73	%
1000 Corporate Drive		Stafford, VA		2010		2009		137,000			82	%
Silverline Center		Tysons, VA		1997		1972/1986/1999/2014		544,000			98	%
John Marshall II		Tysons, VA		2011		1996/2010		223,000			100	%
1901 Pennsylvania Avenue		Washington, DC		1977		1960		102,000			85	%
1220 19th Street		Washington, DC		1995		1976		103,000			99	%
1776 G Street		Washington, DC		2003		1979		265,000			94	%
2000 M Street		Washington, DC		2007		1971		231,000			100	%
2445 M Street		Washington, DC		2008		1986		290,000			100	%
1140 Connecticut Avenue		Washington, DC		2011		1966		183,000			90	%
1227 25th Street		Washington, DC		2011		1988		136,000			99	%
Army Navy Building		Washington, DC		2014		1912/1987		109,000			55	%
1775 Eye Street, NW		Washington, DC		2014		1964		186,000			100	%
Subtotal								3,705,000			94	%

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Schedule of Properties (continued)
March 31, 2017

PROPERTIES		LOCATION		YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET			Leased %
Retail Centers
Bradlee Shopping Center		Alexandria, VA		1984		1955		171,000			99	%
Shoppes of Foxchase		Alexandria, VA		1994		1960/2006		134,000			100	%
800 S. Washington Street		Alexandria, VA		1998/2003		1955/1959		46,000			93	%
Concord Centre		Springfield, VA		1973		1960		76,000			72	%
Gateway Overlook		Columbia, MD		2010		2007		220,000			87	%
Frederick County Square		Frederick, MD		1995		1973		227,000			93	%
Frederick Crossing		Frederick, MD		2005		1999/2003		295,000			99	%
Centre at Hagerstown		Hagerstown, MD		2002		2000		331,000			95	%
Olney Village Center		Olney, MD		2011		1979/2003		199,000			98	%
Randolph Shopping Center		Rockville, MD		2006		1972		82,000			88	%
Montrose Shopping Center		Rockville, MD		2006		1970		145,000			98	%
Takoma Park		Takoma Park, MD		1963		1962		51,000			100	%
Westminster		Westminster, MD		1972		1969		150,000			98	%
Wheaton Park		Wheaton, MD		1977		1967		74,000			93	%
Chevy Chase Metro Plaza		Washington, DC		1985		1975		50,000			87	%
Spring Valley Village		Washington, DC		2014		1941/1950		78,000			81	%
Subtotal								2,329,000			94	%

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Schedule of Properties (continued)
March 31, 2017

PROPERTIES		LOCATION		YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET (1)			Leased %
Multifamily Buildings / # units
Clayborne / 74		Alexandria, VA		2008		2008		60,000			97	%
Riverside Apartments / 1,222		Alexandria, VA		2016		1971		1,266,000			96	%
Park Adams / 200		Arlington, VA		1969		1959		173,000			98	%
Bennett Park / 224		Arlington, VA		2007		2007		214,000			97	%
The Paramount / 135		Arlington, VA		2013		1984		141,000			96	%
The Maxwell / 163		Arlington, VA		2014		2014		139,000			95	%
The Wellington / 711		Arlington, VA		2015		1960		842,000			95	%
Roosevelt Towers / 191		Falls Church, VA		1965		1964		170,000			96	%
The Ashby at McLean / 256		McLean, VA		1996		1982		274,000			96	%
Bethesda Hill Apartments / 195		Bethesda, MD		1997		1986		225,000			98	%
Walker House Apartments / 212		Gaithersburg, MD		1996		1971/2003		157,000			98	%
3801 Connecticut Avenue / 307		Washington, DC		1963		1951		178,000			95	%
Kenmore Apartments / 374		Washington, DC		2008		1948		268,000			95	%
Yale West / 216		Washington, DC		2014		2011		238,000			97	%
Subtotal (4,480 units)								4,345,000			96	%
TOTAL								10,379,000
(1) Multifamily buildings are presented in gross square feet.

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Supplemental Definitions
March 31, 2017

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.

Ending 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 ending occupancy is calculated as occupied units as a percentage of total units as of the last day of that period.

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.

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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 each of NOI and cash NOI as a supplement to net income calculated in accordance with GAAP. As such, neither should be considered an alternative to net income as an indication of our operating performance. They are the primary performance measures we use to assess the results of our operations at the property level.

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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