Washington Real Estate Investment Trust
	Second Quarter 2017
	Supplemental Operating and Financial Data
	Contact:			1775 Eye Street, NW
	Tejal R. Engman			Suite 1000
	Vice President, 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

Second 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.

Second Quarter 2017 Highlights

Net income attributable to controlling interests was $7.9 million, or $0.10 per diluted share, compared to $31.8 million, or $0.44 per diluted share in the second quarter of 2016, which included the recognition of a $24.1 million gain from the first sale transaction of the suburban Maryland office portfolio. NAREIT Funds from Operations (FFO) was $37.1 million, or $0.48 per diluted share, compared to $32.9 million, or $0.46 per diluted share, in second quarter 2016. Additional highlights are as below:

•	Reported Core FFO of $0.48 per diluted share, compared to $0.46 per diluted share in second quarter 2016

•	Grew same-store Net Operating Income (NOI) by 8.8% year-over-year

•	Grew same-store NOI by 14.8% for the office, 4.6% for the retail and 2.6% for the multifamily portfolios year-over-year

•	Increased same-store economic occupancy by 470 basis points year-over-year to 93.7%

•	Raised the mid-point of 2017 Core FFO guidance by two cents per fully diluted share and tightened 2017 Core FFO guidance to a range of $1.80 to $1.84 from $1.76 to $1.84 per fully diluted share

•	Raised 2017 same-store NOI growth assumption to range from 5.75% to 6.25% year-over-year, driven by increased office, retail and multifamily same-store NOI year-over-year growth assumptions

•	Signed a 131,000 square foot, 15-year lease with the United States Department of Agriculture (USDA) at Braddock Metro Center in Alexandria, VA

•	Completed the acquisition of Watergate 600, a 289,000 square foot office building in Washington, DC for $135.0 million

Of the 367,000 square feet of commercial leases signed, there were 228,000 square feet of new leases and 139,000 square feet of renewal leases. New leases, which included a lease with the USDA to backfill the space being vacated by Engility at Braddock Metro Center in Alexandria, VA, had an average rental rate decrease of (6.5)% over expiring lease rates and a weighted average lease term of 11.7 years. Commercial tenant improvement costs were $59.91 per square foot and leasing commissions were $17.04 per square foot for new leases. Renewal leases had an average rental rate increase of 12.2% from expiring lease rates and a weighted average lease term of 5.3 years. Commercial tenant improvement costs were $2.18 per square foot and leasing commissions were $1.85 per square foot for renewal leases.

On April 4, 2017, Washington REIT completed the acquisition of Watergate 600, a 289,000 square foot iconic office building on the Potomac riverfront in Washington, DC for $135.0 million in a transaction that was structured to include the issuance of units for a portion of the purchase price.

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 June 30, 2017, Washington REIT owned a diversified portfolio of 50 properties, totaling approximately 6.3 million square feet of commercial space and 4,480 multifamily units, and land held for development. These 50 properties consist of 20 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

Second Quarter 2017

Net Operating Income Contribution by Sector - Second 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
June 30, 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- 17
	Net Operating Income (NOI) by Region	18
	Same-Store Portfolio and Overall Ending Occupancy Levels by Sector	19
	Same-Store Portfolio and Overall Economic Occupancy Levels by Sector	20
Growth and Strategy
	Acquisition/Development/Re-Development Summary	21
Tenant Analysis
	Commercial Leasing Summary - New Leases	22
	Commercial Leasing Summary - Renewal Leases	23
	10 Largest Tenants - Based on Annualized Base Rent	24
	Industry Diversification	25- 26
	Lease expirations	27
Appendix
	Schedule of Properties	28- 30
	Supplemental Definitions	31

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

	Six Months Ended								Three Months Ended
OPERATING RESULTS	6/30/2017				6/30/2016				6/30/2017				3/31/2017				12/31/2016				9/30/2016				6/30/2016
Real estate rental revenue	$	160,957			$	156,542			$	83,456			$	77,501			$	76,952			$	79,770			$	79,405
Real estate expenses	(56,554		)		(56,909		)		(28,691		)		(27,863		)		(28,940		)		(29,164		)		(28,175		)
	104,403				99,633				54,765				49,638				48,012				50,606				51,230
Real estate depreciation and amortization	(55,330		)		(51,199		)		(29,261		)		(26,069		)		(26,302		)		(30,905		)		(25,161		)
Income from real estate	49,073				48,434				25,504				23,569				21,710				19,701				26,069
Interest expense	(23,458		)		(28,180		)		(12,053		)		(11,405		)		(11,773		)		(13,173		)		(13,820		)
Other income	125				122				48				77				92				83				83
Acquisition costs	—				(1,178		)		—				—				—				—				(1,024		)
Casualty gain	—				676				—				—				—				—				676
Gain on sale of real estate	—				24,112				—				—				—				77,592				24,112
General and administrative expenses	(11,385		)		(10,479		)		(5,759		)		(5,626		)		(4,527		)		(4,539		)		(4,968		)
Income tax benefit (expense)	107				693				107				—				(76		)		(2		)		693
Net income	14,462				34,200				7,847				6,615				5,426				79,662				31,821
Less: Net loss from noncontrolling interests	36				20				17				19				19				12				15
Net income attributable to the controlling interests	$	14,498			$	34,220			$	7,864			$	6,634			$	5,445			$	79,674			$	31,836
Per Share Data:
Net income attributable to the controlling interests	$	0.19			$	0.49			$	0.10			$	0.09			$	0.07			$	1.07			$	0.44
Fully diluted weighted average shares outstanding	75,903				70,200				76,830				74,966				74,779				74,133				71,912
Percentage of Revenues:
Real estate expenses	35.1		%		36.4		%		34.4		%		36.0		%		37.6		%		36.6		%		35.5		%
General and administrative	7.1		%		6.7		%		6.9		%		7.3		%		5.9		%		5.7		%		6.3		%
Ratios:
Adjusted EBITDA / Interest expense	4.0		x		3.2		x		4.1		x		3.9		x		3.7		x		3.5		x		3.4		x
Net income attributable to the controlling interests / Real estate rental revenue	9.0		%		21.9		%		9.4		%		8.6		%		7.1		%		99.9		%		40.1		%

4

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Consolidated Balance Sheets (In thousands) (Unaudited)

	6/30/2017				3/31/2017				12/31/2016				9/30/2016				6/30/2016
Assets
Land	$	616,444			$	573,315			$	573,315			$	573,315			$	573,315
Income producing property	2,201,846				2,123,807				2,112,088				2,092,201				2,072,166
	2,818,290				2,697,122				2,685,403				2,665,516				2,645,481
Accumulated depreciation and amortization	(691,515		)		(680,231		)		(657,425		)		(634,945		)		(613,194		)
Net income producing property	2,126,775				2,016,891				2,027,978				2,030,571				2,032,287
Development in progress, including land held for development	46,154				42,914				40,232				37,463				35,760
Total real estate held for investment, net	2,172,929				2,059,805				2,068,210				2,068,034				2,068,047
Investment in real estate held for sale, net	6,983				—				—				—				41,704
Cash and cash equivalents	13,237				15,214				11,305				8,588				22,379
Restricted cash	1,506				1,430				6,317				10,091				11,054
Rents and other receivables, net of allowance for doubtful accounts	72,149				69,038				64,319				62,989				58,970
Prepaid expenses and other assets	121,005				108,622				103,468				100,788				99,150
Other assets related to properties sold or held for sale	303				—				—				—				5,147
Total assets	$	2,388,112			$	2,254,109			$	2,253,619			$	2,250,490			$	2,306,451
Liabilities
Notes payable	$	893,763			$	893,424			$	843,084			$	744,063			$	743,769
Mortgage notes payable	96,934				97,814				148,540				251,232				252,044
Lines of credit	228,000				123,000				120,000				125,000				269,000
Accounts payable and other liabilities	60,165				50,684				46,967				54,629				52,722
Dividend payable	—				—				22,414				—				—
Advance rents	11,956				11,948				11,750				10,473				10,178
Tenant security deposits	9,263				9,002				8,802				8,634				8,290
Liabilities related to properties sold or held for sale	322				—				—				—				2,338
Total liabilities	1,300,403				1,185,872				1,201,557				1,194,031				1,338,341
Equity
Preferred shares; $0.01 par value; 10,000 shares authorized	—				—				—				—				—
Shares of beneficial interest, $0.01 par value; 100,000 shares authorized	769				757				746				745				737
Additional paid-in capital	1,435,994				1,400,093				1,368,636				1,368,438				1,338,101
Distributions in excess of net income	(357,308		)		(342,020		)		(326,047		)		(309,042		)		(366,352		)
Accumulated other comprehensive loss	6,857				8,346				7,611				(4,870		)		(5,609		)
Total shareholders' equity	1,086,312				1,067,176				1,050,946				1,055,271				966,877
Noncontrolling interests in subsidiaries	1,397				1,061				1,116				1,188				1,233
Total equity	1,087,709				1,068,237				1,052,062				1,056,459				968,110
Total liabilities and equity	$	2,388,112			$	2,254,109			$	2,253,619			$	2,250,490			$	2,306,451

5

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

	Six Months Ended								Three Months Ended
	6/30/2017				6/30/2016				6/30/2017				3/31/2017				12/31/2016				9/30/2016				6/30/2016
Funds from operations(1)
Net income	$	14,462			$	34,200			$	7,847			$	6,615			$	5,426			$	79,662			$	31,821
Real estate depreciation and amortization	55,330				51,199				29,261				26,069				26,302				30,905				25,161
Gain on sale of depreciable real estate	—				(24,112		)		—				—				—				(77,592		)		(24,112		)
NAREIT funds from operations (FFO)	69,792				61,287				37,108				32,684				31,728				32,975				32,870
Casualty gain	—				(676		)		—				—				—				—				(676		)
Severance expense	—				586				—				—				—				242				126
Relocation expense	—				—				—				—				—				16				—
Acquisition and structuring expenses	319				1,366				104				215				118				37				1,107
Core FFO (1)	$	70,111			$	62,563			$	37,212			$	32,899			$	31,846			$	33,270			$	33,427
Allocation to participating securities(2)	(184		)		(155		)		(107		)		(78		)		(32		)		(200		)		(99		)
NAREIT FFO per share - basic	$	0.92			$	0.87			$	0.48			$	0.44			$	0.42			$	0.44			$	0.46
NAREIT FFO per share - fully diluted	$	0.92			$	0.87			$	0.48			$	0.43			$	0.42			$	0.44			$	0.46
Core FFO per share - fully diluted	$	0.92			$	0.89			$	0.48			$	0.44			$	0.43			$	0.45			$	0.46
Common dividend per share	$	0.60			$	0.60			$	0.30			$	0.30			$	0.30			$	0.30			$	0.30
Average shares - basic	75,785				70,010				76,705				74,854				74,592				73,994				71,719
Average shares - fully diluted	75,903				70,200				76,830				74,966				74,779				74,133				71,912
(1)  See "Supplemental Definitions" on page 31 of this supplemental for the definitions of FFO and Core FFO.
(2)  Adjustment to the numerators for FFO and Core FFO per share calculations when applying the two-class method for calculating EPS.

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

	Six Months Ended								Three Months Ended
	6/30/2017				6/30/2016				6/30/2017				3/31/2017				12/31/2016				9/30/2016				6/30/2016
Funds available for distribution (FAD)(1)
NAREIT FFO	$	69,792			$	61,287			$	37,108			$	32,684			$	31,728			$	32,975			$	32,870
Tenant improvements and incentives	(8,572		)		(9,182		)		(2,630		)		(5,942		)		(4,822		)		(4,889		)		(7,639		)
External and internal leasing commissions	(3,937		)		(4,365		)		(1,414		)		(2,523		)		(3,403		)		(1,251		)		(3,350		)
Recurring capital improvements	(1,068		)		(2,145		)		(663		)		(405		)		(1,660		)		(1,146		)		(1,237		)
Straight-line rent, net	(1,955		)		(1,563		)		(1,106		)		(849		)		(603		)		(682		)		(880		)
Non-cash fair value interest expense	(526		)		86				(224		)		(302		)		47				46				44
Non-real estate depreciation and amortization of debt costs	1,714				1,826				815				899				873				846				876
Amortization of lease intangibles, net	1,435				1,796				585				850				900				898				853
Amortization and expensing of restricted share and unit compensation	2,316				2,369				1,186				1,130				737				292				850
FAD	59,199				50,109				33,657				25,542				23,797				27,089				22,387
Non-share-based severance expense	—				165				—				—				—				242				126
Relocation expense	—				—				—				—				—				16				—
Acquisition and structuring expenses	319				1,366				104				215				118				37				1,107
Casualty gain	—				(676		)		—				—				—				—				(676		)
Core FAD (1)	$	59,518			$	50,964			$	33,761			$	25,757			$	23,915			$	27,384			$	22,944
(1)  See "Supplemental Definitions" on page 31 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)

	Six Months Ended								Three Months Ended
	6/30/2017				6/30/2016				6/30/2017				3/31/2017				12/31/2016				9/30/2016				6/30/2016
Adjusted EBITDA (1)
Net income	$	14,462			$	34,200			$	7,847			$	6,615			$	5,426			$	79,662			$	31,821
Add:
Interest expense	23,458				28,180				12,053				11,405				11,773				13,173				13,820
Real estate depreciation and amortization	55,330				51,199				29,261				26,069				26,302				30,905				25,161
Income tax (benefit) expense	(107		)		(693		)		(107		)		—				76				2				(693		)
Casualty gain	—				(676		)		—				—				—				—				(676		)
Non-real estate depreciation	236				304				120				116				119				101				152
Severance expense	—				586				—				—				—				242				126
Relocation expense	—				—				—				—				—				16				—
Acquisition and structuring expenses	319				1,366				104				215				118				37				1,107
Less:
Gain on sale of real estate	—				(24,112		)		—				—				—				(77,592		)		(24,112		)
Adjusted EBITDA	$	93,698			$	90,354			$	49,278			$	44,420			$	43,814			$	46,546			$	46,706
(1)   Adjusted EBITDA is earnings before interest expense, taxes, depreciation, amortization, gain on sale of real estate, casualty gain/loss, 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)

	6/30/2017				3/31/2017				12/31/2016				9/30/2016				6/30/2016
Balances Outstanding
Secured
Mortgage note payable, net	$	96,934			$	97,814			$	148,540			$	251,232			$	252,044
Unsecured
Fixed rate bonds	595,562				595,315				595,067				594,905				594,658
Term loans	298,201				298,109				248,017				149,158				149,111
Credit facility	228,000				123,000				120,000				125,000				269,000
Unsecured total	1,121,763				1,016,424				963,084				869,063				1,012,769
Total	$	1,218,697			$	1,114,238			$	1,111,624			$	1,120,295			$	1,264,813
Weighted Average Interest Rates
Secured
Mortgage note payable, net	4.5		%		4.5		%		4.0		%		5.3		%		5.3		%
Unsecured
Fixed rate bonds	4.7		%		4.7		%		4.7		%		4.7		%		4.7		%
Term loans (1)	2.8		%		2.8		%		2.6		%		2.7		%		2.7		%
Credit facility	2.2		%		2.0		%		1.6		%		1.5		%		1.4		%
Unsecured total	3.7		%		3.8		%		3.8		%		3.9		%		3.6		%
Weighted Average	3.8		%		3.9		%		3.8		%		4.2		%		3.9		%
(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				—				228,000			(1)	259,280				2.6%
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				2.9%
2024	—				—				—				—
2025	—				—				—				—
2026	—				—				—				—
2027	—				—				—				—
Thereafter	—				50,000				—				50,000				7.4%
Scheduled principal payments	$	75,797			$	900,000			$	228,000			$	1,203,797			3.8%
Scheduled amortization payments	17,613				—				—				17,613				4.8%
Net discounts/premiums	3,828				(1,776		)		—				2,052
Loan costs, net of amortization	(304		)		(4,461		)		—				(4,765		)
Total maturities	$	96,934			$	893,763			$	228,000			$	1,218,697			3.8%

Weighted average maturity =4.3 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 June 30, 2017			Covenant		Quarter Ended June 30, 2017			Covenant
% of Total Indebtedness to Total Assets(1)	41.7	%		≤ 65.0%		N/A			N/A
Ratio of Income Available for Debt Service to Annual Debt Service	4.1			≥ 1.5		N/A			N/A
% of Secured Indebtedness to Total Assets(1)	3.3	%		≤ 40.0%		N/A			N/A
Ratio of Total Unencumbered Assets(2) to Total Unsecured Indebtedness	2.5			≥ 1.5		N/A			N/A
% of Net Consolidated Total Indebtedness to Consolidated Total Asset Value(3)	N/A			N/A		34.9	%		≤ 60.0%
Ratio of Consolidated Adjusted EBITDA(4) to Consolidated Fixed Charges(5)	N/A			N/A		3.96			≥ 1.50
% of Consolidated Secured Indebtedness to Consolidated Total Asset Value(3)	N/A			N/A		2.8	%		≤ 40.0%
% of Consolidated Unsecured Indebtedness to Unencumbered Pool Value(6)	N/A			N/A		34.0	%		≤ 60.0%
Ratio of Unencumbered Adjusted Net Operating Income to Consolidated Unsecured Interest Expense	N/A			N/A		4.88			≥ 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
									6/30/2017				3/31/2017				12/31/2016				9/30/2016				6/30/2016
Market Data
Shares Outstanding									$	76,926			$	75,702			$	74,606			$	74,579			$	73,651
Market Price per Share									31.90				31.28				32.69				31.12				31.46
Equity Market Capitalization									$	2,453,939			$	2,367,959			$	2,438,870			$	2,320,898			$	2,317,060
Total Debt									$	1,218,697			$	1,114,238			$	1,111,624			$	1,120,295			$	1,264,813
Total Market Capitalization									$	3,672,636			$	3,482,197			$	3,550,494			$	3,441,193			$	3,581,873
Total Debt to Market Capitalization									0.33		:1		0.32		:1		0.31		:1		0.33		:1		0.35		:1
Earnings to Fixed Charges(1)									1.6x				1.6x				1.4x				6.9x				3.3x
Debt Service Coverage Ratio(2)									3.9x				3.6x				3.4x				3.3x				3.2x
Dividend Data	Six Months Ended								Three Months Ended
	6/30/2017				6/30/2016				6/30/2017				3/31/2017				12/31/2016				9/30/2016				6/30/2016
Total Dividends Declared	$	45,759			$	42,791			$	23,152			$	22,607			$	22,414			$	22,365			$	22,147
Common Dividend Declared per Share	$	0.60			$	0.60			$	0.30			$	0.30			$	0.30			$	0.30			$	0.30
Payout Ratio (Core FFO basis)	65.2		%		67.4		%
Payout Ratio (Core FAD basis)	76.9		%		83.3		%
(1) The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For this purpose, earnings consist of income from continuing operations attributable to the controlling interests plus fixed charges, less capitalized interest. Fixed charges consist of interest expense, including amortized costs of debt issuance, plus interest costs capitalized. 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 2017 vs. 2016

	Six Months Ended June 30,											Rental Rate			Three Months Ended June 30,											Rental Rate
	2017				2016				% Change			Growth			2017				2016				% Change			Growth
Cash Basis:
Multifamily	$	22,484			$	21,774			3.3	%		1.5	%		$	11,368			$	11,076			2.6	%		1.8	%
Office	44,012				38,309				14.9	%		0.2	%		22,538				19,658				14.7	%		—	%
Retail	23,202				21,709				6.9	%		0.5	%		11,694				11,056				5.8	%		0.6	%
Overall Same-Store Portfolio (1)	$	89,698			$	81,792			9.7	%		0.7	%		$	45,600			$	41,790			9.1	%		0.6	%
GAAP Basis:
Multifamily	$	22,478			$	21,760			3.3	%		1.5	%		$	11,366			$	11,074			2.6	%		1.8	%
Office	43,787				38,025				15.2	%		0.5	%		22,476				19,582				14.8	%		0.1	%
Retail	23,757				22,370				6.2	%		0.7	%		11,915				11,396				4.6	%		0.9	%
Overall Same-Store Portfolio (1)	$	90,022			$	82,155			9.6	%		0.9	%		$	45,757			$	42,052			8.8	%		0.7	%

(1)  Non same-store properties were:

Acquisitions:

Multifamily - Riverside Apartments

Office - Watergate 600

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 June 30, 2017
	Multifamily				Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	18,404			$	35,181			$	15,512			$	—			$	69,097
Non same-store - acquired and in development (1)	5,431				8,928				—				—				14,359
Total	23,835				44,109				15,512				—				83,456
Real estate expenses
Same-store portfolio	7,038				12,705				3,597				—				23,340
Non same-store - acquired and in development (1)	2,203				3,148				—				—				5,351
Total	9,241				15,853				3,597				—				28,691
Net Operating Income (NOI)
Same-store portfolio	11,366				22,476				11,915				—				45,757
Non same-store - acquired and in development (1)	3,228				5,780				—				—				9,008
Total	$	14,594			$	28,256			$	11,915			$	—			$	54,765
Same-store portfolio NOI (from above)	$	11,366			$	22,476			$	11,915			$	—			$	45,757
Straight-line revenue, net for same-store properties	1				(670		)		(52		)		—				(721		)
FAS 141 Min Rent	1				36				(220		)		—				(183		)
Amortization of lease intangibles for same-store properties	—				696				51				—				747
Same-store portfolio cash NOI	$	11,368			$	22,538			$	11,694			$	—			$	45,600
Reconciliation of NOI to net income
Total NOI	$	14,594			$	28,256			$	11,915			$	—			$	54,765
Depreciation and amortization	(7,799		)		(16,949		)		(4,305		)		(208		)		(29,261		)
General and administrative	—				—				—				(5,759		)		(5,759		)
Interest expense	(980		)		(288		)		(188		)		(10,597		)		(12,053		)
Other income	—				—				—				48				48
Income tax benefit	—				—				—				107				107
Net income (loss)	5,815				11,019				7,422				(16,409		)		7,847
Net loss attributable to noncontrolling interests	—				—				—				17				17
Net income (loss) attributable to the controlling interests	$	5,815			$	11,019			$	7,422			$	(16,392	)		$	7,864
(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 June 30, 2016
	Multifamily				Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	18,103			$	31,450			$	15,080			$	—			$	64,633
Non same-store - acquired and in development (1)	2,485				12,287				—				—				14,772
Total	20,588				43,737				15,080				—				79,405
Real estate expenses
Same-store portfolio	7,029				11,868				3,684				—				22,581
Non same-store - acquired and in development (1)	868				4,726								—				5,594
Total	7,897				16,594				3,684				—				28,175
Net Operating Income (NOI)
Same-store portfolio	11,074				19,582				11,396				—				42,052
Non same-store - acquired and in development (1)	1,617				7,561				—				—				9,178
Total	$	12,691			$	27,143			$	11,396			$	—			$	51,230
Same-store portfolio NOI (from above)	$	11,074			$	19,582			$	11,396			$	—			$	42,052
Straight-line revenue, net for same-store properties	1				(677		)		(133		)		—				(809		)
FAS 141 Min Rent	1				149				(255		)		—				(105		)
Amortization of lease intangibles for same-store properties	—				604				48				—				652
Same-store portfolio cash NOI	$	11,076			$	19,658			$	11,056			$	—			$	41,790
Reconciliation of NOI to net income
Total NOI	$	12,691			$	27,143			$	11,396			$	—			$	51,230
Depreciation and amortization	(6,496		)		(14,770		)		(3,651		)		(244		)		(25,161		)
General and administrative	—				—				—				(4,968		)		(4,968		)
Interest expense	(1,808		)		(2,204		)		(211		)		(9,597		)		(13,820		)
Other income	—				—				—				83				83
Acquisition costs	—				—				—				(1,024		)		(1,024		)
Gain on sale of real estate	—				—				—				24,112				24,112
Casualty gain	—				—				—				676				676
Income tax benefit	—				—				—				693				693
Net income	4,387				10,169				7,534				9,731				31,821
Net income attributable to noncontrolling interests	—				—				—				15				15
Net income attributable to the controlling interests	$	4,387			$	10,169			$	7,534			$	9,746			$	31,836
(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 Portfolio Net Operating Income (NOI) Detail (In thousands)

	Six Months Ended June 30, 2017
	Multifamily				Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	36,660			$	69,263			$	31,217			$	—			$	137,140
Non same-store - acquired and in development (1)	10,944				12,873				—				—				23,817
Total	47,604				82,136				31,217				—				160,957
Real estate expenses
Same-store portfolio	14,182				25,476				7,460				—				47,118
Non same-store - acquired and in development (1)	4,645				4,791				—				—				9,436
Total	18,827				30,267				7,460				—				56,554
Net Operating Income (NOI)
Same-store portfolio	22,478				43,787				23,757				—				90,022
Non same-store - acquired and in development (1)	6,299				8,082				—				—				14,381
Total	$	28,777			$	51,869			$	23,757			$	—			$	104,403
Same-store portfolio NOI (from above)	$	22,478			$	43,787			$	23,757			$	—			$	90,022
Straight-line revenue, net for same-store properties	4				(1,287		)		(208		)		—				(1,491		)
FAS 141 Min Rent	2				85				(447		)		—				(360		)
Amortization of lease intangibles for same-store properties	—				1,427				100				—				1,527
Same-store portfolio cash NOI	$	22,484			$	44,012			$	23,202			$	—			$	89,698
Reconciliation of NOI to net income
Total NOI	$	28,777			$	51,869			$	23,757			$	—			$	104,403
Depreciation and amortization	(15,289		)		(31,621		)		(8,012		)		(408		)		(55,330		)
General and administrative	—				—				—				(11,385		)		(11,385		)
Interest expense	(1,958		)		(436		)		(382		)		(20,682		)		(23,458		)
Other income	—				—				—				125				125
Income tax benefit	—				—				—				107				107
Net income (loss)	11,530				19,812				15,363				(32,243		)		14,462
Net loss attributable to noncontrolling interests	—				—				—				36				36
Net income (loss) attributable to the controlling interests	$	11,530			$	19,812			$	15,363			$	(32,207	)		$	14,498
(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 Portfolio Net Operating Income (NOI) Detail (In thousands)

	Six Months Ended June 30, 2016
	Multifamily				Office				Retail				Corporate and Other				Total
Real estate rental revenue
Same-store portfolio	$	36,042			$	62,182			$	30,460			$	—			$	128,684
Non same-store - acquired and in development (1)	2,485				25,373				—				—				27,858
Total	38,527				87,555				30,460				—				156,542
Real estate expenses
Same-store portfolio	14,282				24,157				8,090				—				46,529
Non same-store - acquired and in development (1)	868				9,512				—				—				10,380
Total	15,150				33,669				8,090				—				56,909
Net Operating Income (NOI)
Same-store portfolio	21,760				38,025				22,370				—				82,155
Non same-store - acquired and in development (1)	1,617				15,861				—				—				17,478
Total	$	23,377			$	53,886			$	22,370			$	—			$	99,633
Same-store portfolio NOI (from above)	$	21,760			$	38,025			$	22,370			$	—			$	82,155
Straight-line revenue, net for same-store properties	12				(1,167		)		(249		)		—				(1,404		)
FAS 141 Min Rent	2				262				(509		)		—				(245		)
Amortization of lease intangibles for same-store properties	—				1,189				97				—				1,286
Same-store portfolio cash NOI	$	21,774			$	38,309			$	21,709			$	—			$	81,792
Reconciliation of NOI to net income
Total NOI	$	23,377			$	53,886			$	22,370			$	—			$	99,633
Depreciation and amortization	(11,899		)		(31,553		)		(7,260		)		(487		)		(51,199		)
General and administrative	—				—				—				(10,479		)		(10,479		)
Interest expense	(4,051		)		(4,731		)		(427		)		(18,971		)		(28,180		)
Other income	—				—				—				122				122
Acquisition costs	—				—				—				(1,178		)		(1,178		)
Gain on sale of real estate	—				—				—				24,112				24,112
Casualty gain	—				—				—				676				676
Income tax benefit	—				—				—				693				693
Net income (loss)	7,427				17,602				14,683				(5,512		)		34,200
Net loss attributable to noncontrolling interests	—				—				—				20				20
Net income (loss) attributable to the controlling interests	$	7,427			$	17,602			$	14,683			$	(5,492	)		$	34,220
(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
		Q2 2017			YTD 2017
	DC
	Multifamily	5.3	%		5.6	%
	Office	29.6	%		27.0	%
	Retail	1.8	%		1.8	%
		36.7	%		34.4	%
	Maryland
	Multifamily	2.4	%		2.4	%
	Retail	13.2	%		13.8	%
		15.6	%		16.2	%
	Virginia
	Multifamily	19.0	%		19.6	%
	Office	22.0	%		22.7	%
	Retail	6.7	%		7.1	%
		47.7	%		49.4	%
	Total Portfolio	100.0	%		100.0	%

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Same-Store Portfolio and Overall Ending Occupancy Levels by Sector

		Ending Occupancy - Same-Store Properties (1), (2)
Sector		6/30/2017			3/31/2017			12/31/2016			9/30/2016			6/30/2016
Multifamily (calculated on a unit basis)		95.4	%		94.8	%		95.6	%		92.4	%		94.6	%
Multifamily		95.1	%		94.2	%		95.2	%		94.8	%		94.2	%
Office		93.0	%		93.1	%		91.7	%		91.0	%		86.9	%
Retail		91.4	%		93.8	%		95.7	%		95.6	%		92.1	%
Overall Portfolio		93.3	%		93.7	%		94.0	%		93.6	%		90.8	%
		Ending Occupancy - All Properties (2)
Sector		6/30/2017			3/31/2017			12/31/2016			9/30/2016			6/30/2016
Multifamily (calculated on a unit basis)		95.1	%		94.6	%		94.7	%		94.5	%		94.7	%
Multifamily		94.9	%		94.2	%		94.5	%		94.2	%		94.4	%
Office		92.9	%		92.4	%		91.1	%		90.5	%		87.5	%
Retail		91.4	%		93.8	%		95.7	%		95.6	%		92.1	%
Overall Portfolio		93.4	%		93.5	%		93.5	%		93.2	%		91.1	%

(1)  Non same-store properties were:

Acquisitions:

Multifamily - Riverside Apartments

Office - Watergate 600

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		6/30/2017			3/31/2017			12/31/2016			9/30/2016			6/30/2016
Multifamily		94.9	%		94.8	%		95.1	%		95.2	%		95.0	%
Office		94.4	%		93.6	%		91.9	%		89.9	%		85.7	%
Retail		90.4	%		92.1	%		93.6	%		91.8	%		89.3	%
Overall Portfolio		93.7	%		93.6	%		93.2	%		91.8	%		89.0	%
		Economic Occupancy - All Properties
Sector		6/30/2017			3/31/2017			12/31/2016			9/30/2016			6/30/2016
Multifamily		94.5	%		94.0	%		94.4	%		94.6	%		95.3	%
Office		93.4	%		92.0	%		91.1	%		89.5	%		86.6	%
Retail		90.4	%		92.1	%		93.6	%		91.8	%		89.3	%
Overall Portfolio		93.2	%		92.7	%		92.6	%		91.5	%		89.3	%

(1)  Non same-store properties were:

Acquisitions:

Multifamily - Riverside Apartments

Office - Watergate 600

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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Acquisition/Development/Re-development Summary

Property and Location	Acquisition Date	Property type	Net Rentable Square feet		Investment (in thousands)			Leased % as of 6/30/2017
Acquisition Summary
Watergate 600, Washington, DC	April 4, 2017	Office	289,000		$	135,000		99%

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 6/30/2017
Development Summary
Trove (Wellington land parcel), Arlington, VA	401 units	$	122,252		$	21,781		third quarter 2019(2)	N/A
Re-development Summary
The Army Navy Building (3), Washington DC	108,000 square feet	$	4,045		$	3,011		second quarter 2017(4)	55%(5)
Spring Valley Village, Washington DC	14,000 additional square feet	$	5,343		$	981		fourth quarter 2017(6)	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.

⁽⁴⁾ Conference center with access to the rooftop and renovated penthouse as well as upgraded building's lobby substantially complete in second quarter 2017. Common areas anticipated completion in third quarter 2017.

⁽⁵⁾ As a result of leasing activity subsequent to quarter-end, the Army Navy Building is now 71% leased.

⁽⁶⁾ Substantial completion of the new building at Spring Valley Village anticipated in fourth quarter 2017, with completion of the site work anticipated in first quarter 2018.

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Commercial Leasing Summary - New Leases

	2nd Quarter 2017								1st Quarter 2017								4th Quarter 2016								3rd Quarter 2016								2nd Quarter 2016
Gross Leasing Square Footage
Office Buildings	192,352								36,102								39,047								60,538								28,154
Retail Centers	35,582								8,355								10,362								1,342								6,313
Total	227,934								44,457								49,409								61,880								34,467
Weighted Average Term (years)
Office Buildings	11.7								8.5								4.9								6.4								6.1
Retail Centers	11.6								6.2								9.2								8.3								8.0
Total	11.7								8.1								5.8								6.4								6.5
Weighted Average Free Rent Period (months) (1)
Office Buildings	12.5								9.1								3.0								6.1								5.9
Retail Centers	6.9								2.7								1.0								3.9								1.2
Total	11.6								8.0								2.5								6.1								5.3
Rental Rate Increases:	GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH
Rate on expiring leases
Office Buildings	$	36.32			$	38.30			$	32.50			$	33.83			$	40.36			$	42.92			$	39.31			$	39.01			$	34.80			$	35.43
Retail Centers	21.80				21.06				37.15				35.16				38.26				38.99				43.67				46.15				28.92				29.11
Total	$	34.13			$	35.69			$	33.37			$	34.08			$	39.92			$	42.10			$	39.40			$	39.17			$	33.73			$	34.27
Rate on new leases
Office Buildings	$	31.14			$	30.63			$	43.20			$	38.67			$	42.64			$	39.96			$	44.06			$	40.80			$	39.83			$	37.09
Retail Centers	36.28				33.14				36.39				34.46				44.14				40.37				60.89				55.00				28.13				26.45
Total	$	31.92			$	31.01			$	41.92			$	37.88			$	42.96			$	40.05			$	44.42			$	41.10			$	37.69			$	35.14
Percentage Increase
Office Buildings	(14.2		)%		(20.0		)%		33.0		%		14.3		%		5.7		%		(6.9		)%		12.1		%		4.6		%		14.5		%		4.7		%
Retail Centers	66.4		%		57.4		%		(2.1		)%		(2.0		)%		15.4		%		3.5		%		39.4		%		19.2		%		(2.7		)%		(9.1		)%
Total	(6.5		)%		(13.1		)%		25.6		%		11.1		%		7.6		%		(4.9		)%		12.7		%		4.9		%		11.8		%		2.5		%
	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	$	11,732,915			$	61.00			$	2,333,378			$	64.63			$	1,244,745			$	31.88			$	2,682,882			$	44.32			$	1,356,810			$	48.19
Retail Centers	1,923,540				54.06				60,030				7.18				307,953				29.72				—				—				111,840				17.72
Subtotal	$	13,656,455			$	59.91			$	2,393,408			$	53.84			$	1,552,698			$	31.43			$	2,682,882			$	43.36			$	1,468,650			$	42.61
Leasing Commissions (1)
Office Buildings	$	3,263,054			$	16.96			$	688,811			$	19.08			$	424,951			$	10.88			$	890,195			$	14.70			$	375,882			$	13.35
Retail Centers	620,605				17.44				98,930				11.84				212,162				20.48				39,380				29.34				80,461				12.75
Subtotal	$	3,883,659			$	17.04			$	787,741			$	17.72			$	637,113			$	12.89			$	929,575			$	15.02			$	456,343			$	13.24
Tenant Improvements and Leasing Commissions
Office Buildings	$	14,995,969			$	77.96			$	3,022,189			$	83.71			$	1,669,696			$	42.76			$	3,573,077			$	59.02			$	1,732,692			$	61.54
Retail Centers	2,544,145				71.50				158,960				19.02				520,115				50.20				39,380				29.34				192,301				30.47
Total	$	17,540,114			$	76.95			$	3,181,149			$	71.56			$	2,189,811			$	44.32			$	3,612,457			$	58.38			$	1,924,993			$	55.85

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Commercial Leasing Summary - Renewal Leases

	2nd Quarter 2017								1st Quarter 2017								4th Quarter 2016								3rd Quarter 2016								2nd Quarter 2016
Gross Leasing Square Footage
Office Buildings	22,026								104,283								64,956								151,722								30,787
Retail Centers	116,740								47,279								65,934								74,535								9,076
Total	138,766								151,562								130,890								226,257								39,863
Weighted Average Term (years)
Office Buildings	6.5								11.8								4.9								3.7								4.6
Retail Centers	5.0								5.7								4.9								4.7								6.3
Total	5.3								9.9								4.9								4.0								5.0
Weighted Average Free Rent Period (months) (1)
Office Buildings	3.0								12.1								3.1								2.4								4.4
Retail Centers	—								—								—								—								0.7
Total	0.9								9.1								1.8								1.8								3.3
Rental Rate Increases:	GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH				GAAP				CASH
Rate on expiring leases
Office Buildings	$	50.64			$	51.78			$	46.52			$	50.00			$	43.31			$	43.62			$	35.85			$	36.37			$	30.13			$	31.53
Retail Centers	21.10				21.35				32.13				33.61				27.52				27.66				25.03				25.28				32.56				47.14
Total	$	25.79			$	26.18			$	42.03			$	44.88			$	35.36			$	35.58			$	32.28			$	32.72			$	30.69			$	35.08
Rate on new leases
Office Buildings	$	58.15			$	55.54			$	58.13			$	50.05			$	46.84			$	44.18			$	42.20			$	40.38			$	34.42			$	32.44
Retail Centers	23.43				23.21				37.10				35.64				30.27				29.81				27.61				26.58				41.78				46.62
Total	$	28.94			$	28.34			$	51.57			$	45.56			$	38.49			$	36.94			$	37.39			$	35.84			$	36.10			$	35.67
Percentage Increase
Office Buildings	14.8		%		7.3		%		25.0		%		0.1		%		8.1		%		1.3		%		17.7		%		11.0		%		14.2		%		2.9		%
Retail Centers	11.1		%		8.7		%		15.5		%		6.0		%		10.0		%		7.8		%		10.3		%		5.1		%		28.3		%		(1.1		)%
Total	12.2		%		8.3		%		22.7		%		1.5		%		8.9		%		3.8		%		15.8		%		9.5		%		17.6		%		1.7		%
	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	$	279,990			$	12.71			$	9,703,224			$	93.05			$	1,068,629			$	16.45			$	2,243,523			$	14.79			$	153,365			$	4.98
Retail Centers	22,800				0.20				111,925				2.37				56,940				0.86				—				—				—				—
Subtotal	$	302,790			$	2.18			$	9,815,149			$	64.76			$	1,125,569			$	8.60			$	2,243,523			$	9.92			$	153,365			$	3.85
Leasing Commissions (1)
Office Buildings	$	196,926			$	8.94			$	2,981,750			$	28.59			$	735,713			$	11.33			$	780,080			$	5.14			$	198,223			$	6.44
Retail Centers	59,431				0.51				137,765				2.91				120,858				1.83				124,121				1.67				74,824				8.24
Subtotal	$	256,357			$	1.85			$	3,119,515			$	20.58			$	856,571			$	6.54			$	904,201			$	4.00			$	273,047			$	6.85
Tenant Improvements and Leasing Commissions
Office Buildings	$	476,916			$	21.65			$	12,684,974			$	121.64			$	1,804,342			$	27.78			$	3,023,603			$	19.93			$	351,588			$	11.42
Retail Centers	82,231				0.71				249,690				5.28				177,798				2.69				124,121				1.67				74,824				8.24
Total	$	559,147			$	4.03			$	12,934,664			$	85.34			$	1,982,140			$	15.14			$	3,147,724			$	13.92			$	426,412			$	10.70

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10 Largest Tenants - Based on Annualized Commercial Income
June 30, 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
Advisory Board Company	2		23			5.74	%		310,668			5.40	%
World Bank	1		42			5.67	%		210,354			3.66	%
Atlantic Media, Inc.	1		124			3.82	%		140,208			2.44	%
Capital One	5		54			3.00	%		148,742			2.59	%
Engility Corporation (1)	1		3			2.67	%		134,126			2.33	%
Blank Rome LLP	1		18			2.49	%		80,547			1.40	%
Booz Allen Hamilton, Inc.	1		103			2.39	%		222,989			3.88	%
Epstein, Becker & Green, P.C.	1		126			1.54	%		60,544			1.05	%
Hughes Hubbard & Reed LLP	1		168			1.52	%		54,154			0.94	%
Alexandria City School Board	1		143			1.27	%		84,693			1.48	%
Total/Weighted Average			66			30.11	%		1,447,025			25.17	%

⁽¹⁾ We have executed a lease with a new tenant for the space currently occupied by Engility Corporation. We expect the new lease to commence in 2018.

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Industry Diversification - Office
June 30, 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)	$	54,747,294			36.81	%		1,511,409			41.35	%
Finance and Insurance	22,657,869				15.24	%		485,596			13.28	%
Information	16,217,879				10.91	%		340,883			9.33	%
Legal Services	16,022,299				10.78	%		317,829			8.69	%
Political, Civic and Social Organizations	12,480,740				8.39	%		304,929			8.34	%
Health Care and Social Assistance	5,316,718				3.58	%		153,448			4.20	%
Educational Services	4,704,393				3.16	%		144,870			3.96	%
Wholesale Trade	4,537,042				3.05	%		103,579			2.83	%
Miscellaneous:
Administrative and Support and Waste Management and Remediation Services	3,141,360				2.11	%		71,202			1.95	%
Public Administration	2,268,763				1.53	%		45,928			1.26	%
Real Estate and Rental and Leasing	1,949,992				1.31	%		45,615			1.25	%
Management of Companies and Enterprises	1,736,928				1.17	%		43,599			1.19	%
Other	2,911,472				1.96	%		86,583			2.37	%
Total	$	148,692,749			100.00	%		3,655,470			100.00	%
Note: Federal government tenants comprise up to 1.3% of annualized base rental revenue.

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Industry Diversification - Retail

June 30, 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	$	27,070,276			57.03	%		1,443,633			70.31	%
Accommodation and Food Services	7,560,857				15.93	%		228,669			11.14	%
Finance and Insurance	4,182,225				8.81	%		56,299			2.74	%
Other Services (except Public Administration/Government)	3,427,931				7.22	%		105,736			5.15	%
Arts, Entertainment, and Recreation	1,965,265				4.14	%		115,586			5.63	%
Health Care and Social Assistance	1,242,757				2.62	%		31,602			1.54	%
Miscellaneous:
Manufacturing	546,986				1.15	%		17,547			0.85	%
Educational Services	427,500				0.90	%		25,598			1.25	%
Information (Broadcasting, Publishing, Telecommunications)	358,211				0.75	%		8,347			0.41	%
Other	687,044				1.45	%		20,176			0.98	%
Total	$	47,469,052			100.00	%		2,053,193			100.00	%

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Lease Expirations
June 30, 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		29			235,087			6.36	%		$	9,202,831			$	39.15			5.39	%
2018		44			291,601			7.89	%		13,520,479				46.37				7.92	%
2019		59			559,935			15.16	%		24,127,195				43.09				14.13	%
2020		47			425,284			11.51	%		20,317,437				47.77				11.90	%
2021		58			432,436			11.71	%		18,487,596				42.75				10.81	%
2022 and thereafter		178			1,749,240			47.37	%		85,136,463				48.67				49.85	%
		415			3,693,583			100.00	%		$	170,792,001			46.24				100.00	%
Retail:
2017		12			43,240			2.06	%		$	1,370,718			$	31.70			2.58	%
2018		32			276,529			13.20	%		3,771,880				13.64				7.09	%
2019		31			115,387			5.51	%		3,553,413				30.80				6.68	%
2020		41			387,674			18.50	%		7,279,797				18.78				13.68	%
2021		23			218,039			10.41	%		3,891,705				17.85				7.31	%
2022 and thereafter		148			1,054,383			50.32	%		33,340,036				31.62				62.66	%
		287			2,095,252			100.00	%		$	53,207,549			25.39				100.00	%
Total:
2017		41			278,327			4.81	%		$	10,573,549			$	37.99			4.72	%
2018		76			568,130			9.81	%		17,292,359				30.44				7.72	%
2019		90			675,322			11.67	%		27,680,608				40.99				12.36	%
2020		88			812,958			14.04	%		27,597,234				33.95				12.32	%
2021		81			650,475			11.24	%		22,379,301				34.40				9.99	%
2022 and thereafter		326			2,803,623			48.43	%		118,476,499				42.26				52.89	%
		702			5,788,835			100.00	%		$	223,999,550			38.70				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
June 30, 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			93	%
Braddock Metro Center		Alexandria, VA		2011		1985		352,000			99	%
1600 Wilson Boulevard		Arlington, VA		1997		1973		170,000			100	%
Fairgate at Ballston		Arlington, VA		2012		1988		143,000			93	%
Monument II		Herndon, VA		2007		2000		208,000			84	%
925 Corporate Drive		Stafford, VA		2010		2007		135,000			75	%
1000 Corporate Drive		Stafford, VA		2010		2009		137,000			82	%
Silverline Center		Tysons, VA		1997		1972/1986/1999/2014		545,000			97	%
John Marshall II		Tysons, VA		2011		1996/2010		223,000			100	%
1901 Pennsylvania Avenue		Washington, DC		1977		1960		102,000			82	%
1220 19th Street		Washington, DC		1995		1976		103,000			97	%
1776 G Street		Washington, DC		2003		1979		262,000			100	%
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		184,000			85	%
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		187,000			100	%
Watergate 600		Washington, DC		2017		1972/1997		289,000			99	%
Subtotal								3,999,000			94	%

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Schedule of Properties (continued)
June 30, 2017

PROPERTIES		LOCATION		YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET			Leased %
Retail Centers
Bradlee Shopping Center		Alexandria, VA		1984		1955		171,000			100	%
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			98	%
Frederick County Square		Frederick, MD		1995		1973		227,000			93	%
Frederick Crossing		Frederick, MD		2005		1999/2003		295,000			89	%
Centre at Hagerstown		Hagerstown, MD		2002		2000		330,000			86	%
Olney Village Center		Olney, MD		2011		1979/2003		199,000			97	%
Randolph Shopping Center		Rockville, MD		2006		1972		83,000			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			93	%

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Schedule of Properties (continued)
June 30, 2017

PROPERTIES		LOCATION		YEAR ACQUIRED		YEAR CONSTRUCTED		NET RENTABLE SQUARE FEET (1)			Leased %
Multifamily Buildings / # units
Clayborne / 74		Alexandria, VA		2008		2008		60,000			96	%
Riverside Apartments / 1,222		Alexandria, VA		2016		1971		1,266,000			99	%
Park Adams / 200		Arlington, VA		1969		1959		173,000			98	%
Bennett Park / 224		Arlington, VA		2007		2007		214,000			98	%
The Paramount / 135		Arlington, VA		2013		1984		141,000			97	%
The Maxwell / 163		Arlington, VA		2014		2014		139,000			96	%
The Wellington / 711		Arlington, VA		2015		1960		842,000			96	%
Roosevelt Towers / 191		Falls Church, VA		1965		1964		170,000			96	%
The Ashby at McLean / 256		McLean, VA		1996		1982		274,000			100	%
Bethesda Hill Apartments / 195		Bethesda, MD		1997		1986		225,000			97	%
Walker House Apartments / 212		Gaithersburg, MD		1996		1971/2003		157,000			97	%
3801 Connecticut Avenue / 307		Washington, DC		1963		1951		178,000			99	%
Kenmore Apartments / 374		Washington, DC		2008		1948		268,000			97	%
Yale West / 216		Washington, DC		2014		2011		238,000			98	%
Subtotal (4,480 units)								4,345,000			98	%
TOTAL								10,673,000
(1) Multifamily buildings are presented in gross square feet.

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Supplemental Definitions
June 30, 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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