NEWS RELEASE Washington Real Estate Investment Trust CONTACT: 6110 Executive Boulevard Listed: NYSE Marie Donohue Suite 800 Trading Symbol: WRE Executive Assistant Rockville, MD 20852 Newspaper Quote: WRIT Direct Dial: 301-255-0802 Tel 301-984-9400 www.writ.com E-Mail: mdonohue@writ.com Fax 301-984-9610 ------------ ----------------- FOR IMMEDIATE RELEASE April 22, 2002 Page 1 of 5 WASHINGTON REAL ESTATE INVESTMENT TRUST 1/st/ QUARTER EPS Up 40.0%, FFO Per Share Up 6.4% Washington Real Estate Investment Trust (WRIT) reported the following results today:
Q1 2002 Q1 2001 % Change ------- ------- -------- Earnings Per Share ("EPS") $0.42 $0.30 40.0% Funds from Operations Per Share ("FFO") $0.50 $0.47 6.4% Funds Available for Distribution Per Share ("FAD") $0.35 $0.37 (5.4%)
(Details regarding the above amounts are contained in the following pages. All amounts are fully diluted per share.) Edmund B. Cronin, Jr. Chairman, President and CEO, stated, "Though the economy continues to weaken WRIT has been able to weather the storm and produce relatively strong growth." He also noted, "The decline of 5.4% per share for FAD is a result of the timing of non-recurring capital expenditures, which WRIT includes in its calculation for funds available for distribution." WRIT is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington-Baltimore region. The Trust owns a diversified portfolio of 57 properties consisting of 10 retail centers, 23 office properties, 15 industrial and 9 multifamily properties. WRIT has achieved 36 consecutive years of increased earnings per share and 29 consecutive years of FFO per share growth. WRIT's dividends have increased every year for 31 consecutive years. During these 31 years, WRIT's dividends have increased 36 times, a record unmatched by any other publicly traded real estate investment trust. WRIT shares are publicly traded on the New York Stock Exchange (symbol: WRE). Note: WRIT's press releases and supplemental financial information are available on the company website at www.writ.com or by contacting Investor Relations at ------------ 301-984-9400. Certain statements in this press release and the supplemental disclosures attached hereto are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors included, but are not limited to, fluctuations in interest rates, availability of raw materials and labor costs, levels of competition, the effect of government regulation, the availability of capital, weather, conditions, the timing and pricing of lease transactions and changes in general and local economic and real estate market conditions. FOR IMMEDIATE RELEASE Page 2 of 5 WASHINGTON REAL ESTATE INVESTMENT TRUST FINANCIAL HIGHLIGHTS (In thousands, except per share data)
Quarter Ended March 31, OPERATING RESULTS 2002 2001 - ----------------- -------- --------- Real estate rental revenue $ 38,022 $ 34,961 Real estate expenses (10,525) (10,251) ----------- ----------- 27,497 24,710 Real estate depreciation and amortization (6,950) (6,190) ----------- ----------- Income from real estate 20,547 18,520 Other income 148 199 Interest expense (6,883) (6,676) General and administrative (1,240) (1,500) ----------- ----------- Income from continuing operations 12,572 10,543 Gain from operations of disposed property (including gain on disposal of $3,838) 3,756 185 ----------- ----------- Net Income 16,328 10,728 =========== =========== Gain on disposal (3,838) - Real estate depreciation and amortization, including discontinued operations 6,961 6,214 ----------- ----------- Funds From Operations 19,451 16,942 =========== =========== Tenant Improvements (1,015) (938) Recurring Capital Improvements (2,430) (2,151) Leasing Commissions Capitalized (283) (290) Major Renovations, Expansions and Development (2,163) (98) Straight Line Rents, Net of Reserve (539) (635) Non Real Estate Depreciation & Amortization 515 457 ----------- ----------- Funds Available for Distribution $ 13,536 $ 13,287 =========== =========== Per Share Data - -------------- Income from continuing operations (Basic) $0.32 $0.29 (Diluted) $0.32 $0.29 Net Income (Basic) $0.42 $0.30 (Diluted) $0.42 $0.30 Funds From Operations (Basic) $0.50 $0.47 (Diluted) $0.50 $0.47 Funds Available for Distribution (Basic) $0.35 $0.37 (Diluted) $0.35 $0.37 Dividends paid $0.3325 $0.3125 Weighted average shares outstanding 38,898,988 35,777,563 Fully diluted weighted average shares outstanding 39,185,576 36,163,873
Washington Real Estate Investment Trust Q1 2002 Supplemental Disclosures Page 3 of 5 WASHINGTON REAL ESTATE INVESTMENT TRUST CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts)
March 31, December 31, 2002 2001 --------- ------------ Assets Land $152,835 $151,782 Building 625,374 622,804 -------- -------- Total real estate, at cost 778,209 774,586 Accumulated depreciation (126,788) (122,625) -------- -------- Total investment in real estate, net 651,421 651,961 Cash and cash equivalents 30,509 26,441 Rents and other receivables, net of allowance for doubtful accounts of $2,015 and $1,993, respectively 11,088 10,523 Prepaid expenses and other assets 18,248 19,010 -------- -------- Total Assets $711,266 $707,935 ======== ======== Liabilities Accounts payable and other liabilities $ 11,564 $ 13,239 Advance rents 2,953 3,604 Tenant security deposits 6,184 6,148 Mortgage notes payable 94,445 94,726 Notes payable 265,000 265,000 -------- -------- Total Liabilities 380,146 382,717 -------- -------- Minority interest 1,658 1,611 -------- -------- Shareholders' Equity Shares of beneficial interest, $.01 par value; 100,000 shares authorized: 38,988 and 38,829 shares issued and outstanding, respectively 390 388 Additional paid-in capital 325,741 323,257 Retained earnings (deficit) 3,331 (38) -------- -------- Total Shareholders' Equity 329,462 323,607 -------- -------- Total Liabilities and Shareholders' Equity $711,266 $707,935 -------- -------- Debt Information as of 3/31/02 - ------------------------------ Debt to total Market Capitalization 24.2% Earnings to Fixed Charges 3.68 Debt Service Coverage Ratio 3.68
Washington Real Estate Investment Trust Q1 2002 Supplemental Disclosures Page 4 of 5 Core Portfolio & Overall Occupancy Levels by Sector - ---------------------------------------------------
Core Portfolio All Properties ---------------------- ---------------------- 1st QTR 1st QTR 1st QTR 1st QTR Sector 2002 2001 2002 2001 ------- ------- ------- ------- Multifamily 93.5% 94.9% 93.5% 94.9% Office Buildings 89.5% 98.3% 90.2% 98.0% Retail Centers 93.4% 96.0% 93.4% 96.0% Industrial/Flex Centers 97.3% 98.3% 94.7% 98.4% ----- ----- ----- ----- Overall Portfolio 91.8% 97.3% 91.9% 97.2%
Dispositions - ------------ On February 28, 2002 WRIT sold its 1501 South Capitol Street industrial building in Washington, DC for $6.2 million, resulting in a gain of $3.8 million. Built in 1940, the property contained approximately 145,000 square feet and had been in the WRIT portfolio since 1974. REIT Industry Issues - -------------------- In light of recent issues raised in the REIT industry, WRIT makes the following disclosures: 1. WRIT has no non-income producing land held for development and no speculative construction in process. 2. WRIT has only one theatre lease in its portfolio. This lease runs through 6/30/02 at rent that WRIT estimates to be less than 1/3 of current market rent. 3. WRIT has no capital investments in technology ventures or companies, nor any other off balance sheet activities. Washington Real Estate Investment Trust Q1 2002 Supplemental Disclosures Page 5 of 5 Conference Call Information - --------------------------- WRIT will conduct a Conference Call to discuss 1st Quarter Earnings on Tuesday, April 23, 2002 at 11:00 AM, Eastern Time. Conference call access information is as follows: USA Toll Free Number: 877-352-5211 International Toll Number: 630-395-0025 Pass Code: Washington REIT Leader: Sara Grootwassink The replay of the Conference Call will be available for two weeks, commencing one hour after the Conference Call and concluding on May 7, 2002 at 5:00 PM Eastern Time. Instant Replay access information is as follows: USA Toll Free Number: 800-879-3439 International Toll Number: 402-220-4716 The live on-demand webcast of the Conference Call will also be available on WRIT's website at www.writ.com. The on-line playback of the webcast will be ------------ available at www.writ.com for 30 days following the Conference Call. ------------