Washington Real Estate Investment Trust
Supplemental Information
September 30, 2002
Contact: 6110 Executive Blvd
Sara Grootwassink Suite 800
Chief Financial Officer Rockville, MD 20852
Direct Dial: (301) 255-0820 (301) 984-9400
E-mail: sgrootwassink@writ.com (301) 984-9610 fax
Washington Real Estate Investment Trust
Supplemental Information
Table of Contents
September 30, 2002
==========================================================================================
Schedule Page
==========================================================================================
About the Trust 2
Consolidated Statements of Operations 3
Consolidated Balance Sheet 4
Funds From Operations and Funds Available for Distribution 5
Long-Term Debt Analysis 6
Capital Analysis 7
Core Portfolio Operating Income (NOI) Growth & Rental Rate Growth 8
Core Portfolio & Overall Occupancy Levels by Sector 9
Schedule of Properties 10
Schedule of Properties (continued) 11
Commercial Leasing Summary 12
10 Largest Tenants - Based on Annualized Rent 13
Lease Expirations as of September 30, 2002 14
Acquisition Summary as of September 30, 2002 15
Total Return Chart 16
Washington Real Estate Investment Trust
About the Trust
================================================================================
Mission Statement
Washington Real Estate Investment Trust, founded in 1960 and headquarted in
Rockville, Maryland, invests in a diversified range of income-producing property
types. Our purpose is to acquire and manage real estate investments in markets
we know well and protect our assets from single property-type value fluctuations
through diversified holdings. Our goal is to continue to safely increase
earnings and shareholder value.
Company Background
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 59 properties consisting of 11
retail centers, 24 office properties, 15 industrial and 9 multifamily
properties.
WRIT's dividends have increased every year for 32 consecutive years. WRIT shares
are publicly traded on the New York Stock Exchange (symbol: WRE).
2
Washington Real Estate Investment Trust
Consolidated Statement of Operations
(In thousands, except per share data)
================================================================================
Three Months Ended
OPERATING RESULTS 09/30/02 06/30/02 03/31/02 12/31/01 09/30/01
- ------------------------------------------ ------------ ------------ ------------ ------------ ------------
Real estate rental revenue $ 38,324 $ 37,556 $ 38,022 $ 37,755 $ 37,510
Real estate expenses (11,453) (10,803) (10,525) (10,257) (10,732)
------------ ------------ ------------ ------------ -------------
26,871 26,753 27,497 27,498 26,778
Real estate depreciation and amortization (7,303) (7,053) (6,950) (7,017) (6,777)
------------ ------------ ------------ ------------ -------------
Income from real estate 19,568 19,700 20,547 20,481 20,001
Other income 177 228 148 435 302
Interest expense (7,068) (6,888) (6,883) (6,893) (6,731)
General and administrative (1,034) (1,227) (1,240) (1,559) (1,303)
------------ ------------ ------------ ------------ -------------
Income before sale of real estate investment 11,643 11,813 12,572 12,464 12,269
Gain on sale of real estate investment - - - - 4,296
------------ ------------ ------------ ------------ -------------
Income from continuing operations 11,643 11,813 12,572 12,464 16,565
Discontinued operations:
Income (loss) from operations of disposed property - - (82) (58) 259
Gain on property disposed - - 3,838 - -
Net Income $ 11,643 $ 11,813 $ 16,328 $ 12,406 $ 16,824
============ ============ ============ ============ =============
Per Share Data
- --------------
Income from continuing operations (Diluted) $ 0.30 $ 0.30 $ 0.32 $ 0.32 $ 0.43
Net Income (Diluted) $ 0.30 $ 0.30 $ 0.42 $ 0.32 $ 0.43
Fully diluted weighted average shares outstanding 39,358,143 39,348,732 39,185,576 39,056,824 38,795,143
Percentage of Revenues:
Real estate expenses 29.9% 28.8% 27.7% 27.2% 28.6%
General and administrative 2.7% 3.3% 3.3% 4.1% 3.5%
Ratios:
EBITDA / Interest Expense 3.7x 3.7x 3.8x 3.8x 3.8x
Income from continuing operations /
Total revenue 30.4% 31.5% 33.1% 33.0% 44.2%
Fixed Charge Coverage 2.6x 2.7x 2.8x 2.8x 2.9x
For calculation purposes only:
EBITDA - 25,729 26,387 26,069 25,907
3
Washington Real Estate Investment Trust
Consolidated Balance Sheet
(In thousands)
================================================================================
September 30, June 30, March 31, December 31, September 30,
2002 2002 2002 2001 2001
------------- --------- ---------- ------------- ------------
Assets
Land $ 169,045 $ 165,863 $ 152,835 $ 151,782 $ 148,977
Building 679,365 660,314 625,374 622,804 597,881
------------- --------- ---------- ------------- ------------
Total real estate, at cost 848,410 826,177 778,209 774,586 746,858
Accumulated depreciation (139,965) (133,219) (126,788) (122,625) (116,463)
------------- --------- ---------- ------------- ------------
Total investment in real estate, net 708,445 692,958 651,421 651,961 630,395
Cash and cash equivalents 15,818 24,129 30,509 26,441 32,953
Rents and other receivables
net of allowance for doubtful accounts 12,617 12,481 11,088 10,523 10,705
Prepaid expenses and other assets 21,083 16,604 18,248 19,010 20,748
------------- --------- ---------- ------------- ------------
Total Assets $ 757,963 $ 746,172 $ 711,266 $ 707,935 $ 694,801
============= ========= ========== ============= ============
Liabilities
Accounts payable and other liabilities $ 11,869 $ 14,522 $ 11,564 $ 13,239 $ 11,776
Advance rents 4,172 3,006 2,953 3,604 2,791
Tenant security deposits 6,442 6,302 6,184 6,148 6,071
Mortgage notes payable 87,197 94,159 94,445 94,726 85,641
Line of credit payable 53,750 32,000 - - -
Notes payable 265,000 265,000 265,000 265,000 265,000
------------- --------- ---------- ------------- ------------
Total Liabilities 428,430 414,989 380,146 382,717 371,279
------------- --------- ---------- ------------- ------------
Minority interest 1,554 1,542 1,658 1,611 1,594
------------- --------- ---------- ------------- ------------
Shareholders' Equity
Shares of beneficial interest, $.01 par value;
100,000 shares authorized $ 391 $ 391 $ 390 $ 388 $ 387
Additional paid-in capital 328,387 327,893 325,741 323,257 321,079
Retained earnings (deficit) (799) 1,357 3,331 (38) 462
------------- --------- ---------- ------------- ------------
Total Shareholders' Equity 327,979 329,641 329,462 323,607 321,928
------------- --------- ---------- ------------- ------------
Total Liabilities and Shareholders' Equity $ 757,963 $ 746,172 $ 711,266 $ 707,935 $ 694,801
============= ========= ========== ============= ============
Total Debt / Total Market Capitalization 0.29:1 0.26:1 0.24:1 0.27:1 0.28:1
============= ========= ========== ============= ============
4
Washington Real Estate Investment Trust
Funds From Operations and Funds Available for Distribution
(In thousands, except per share data)
================================================================================
September 30, June 30, March 31, December 31, September 30,
2002 2002 2002 2001 2001
---------------- --------------- --------------- ---------------- ---------------
Funds From Operations
Net Income $ 11,643 $ 11,813 $ 16,328 $ 12,406 $ 16,824
Real estate depreciation and amortization 7,303 7,053 6,950 7,017 6,777
Gain on sale of real estate investment - - - - (4,296)
Divestiture sharing distribution - - - - (22)
Discontinued operations:
Gain on property disposed - - (3,838) - -
Real estate depreciation and amortization - - 11 24 23
---------------- --------------- --------------- ---------------- ---------------
Funds From Operations (FFO) 18,946 18,866 19,451 19,447 19,306
---------------- --------------- --------------- ---------------- ---------------
FFO per share - basic $ 0.48 $ 0.48 $ 0.50 $ 0.50 $ 0.50
FFO per share - fully diluted $ 0.48 $ 0.48 $ 0.50 $ 0.50 $ 0.50
Funds Available for Distribution
Accretive:
Tenant Improvements (1,095) (1,280) (1,014) (578) (820)
Leasing Commissions Capitalized (258) (381) (283) (306) (182)
Non-Accretive:
Recurring Capital Improvements (2,132) (1,647) (1,814) (1,463) (1,233)
Straight-Line Rent, Net (338) (487) (539) (550) (526)
Non RE Depreciation & Amortization 491 488 515 449 430
Divestiture Sharing Distribution - - - - 22
---------------- --------------- --------------- ---------------- ---------------
Funds Available for Distribution (FAD) 15,614 15,559 16,316 16,999 16,997
---------------- --------------- --------------- ---------------- ---------------
Net Funds Available for Distribution
Accretive:
Major Renovations and Expansions (2,592) (3,090) (1,920) (1,213) (321)
Acquisition - Related (334) (441) (398) (1,547) (1,111)
---------------- --------------- --------------- ---------------- ---------------
Net Funds Available for Distribution (NFAD) $ 12,688 $ 12,028 $ 13,998 $ 14,239 $ 15,565
================ =============== =============== ================ ===============
FAD per share - basic $ 0.40 $ 0.40 $ 0.42 $ 0.44 $ 0.44
FAD per share - fully diluted $ 0.40 $ 0.40 $ 0.42 $ 0.44 $ 0.44
NFAD per share - basic $ 0.33 $ 0.31 $ 0.36 $ 0.37 $ 0.40
NFAD per share - fully diluted $ 0.33 $ 0.31 $ 0.36 $ 0.36 $ 0.40
Average shares - basic 39,133,714 39,055,523 38,898,988 38,748,217 38,460,018
Average shares - fully diluted 39,358,143 39,348,732 39,185,576 39,056,824 38,795,143
5
Washington Real Estate Investment Trust
Long-Term Debt Analysis
(In thousands, except per share amounts)
================================================================================
September 30, June 30, March 31, December 31, September 30,
2002 2002 2002 2001 2001
------------- ----------- ----------- ------------ -------------
Balances Outstanding
Secured
Conventional fixed rate $ 87,197 $ 94,159 $ 94,445 $ 94,726 $ 85,641
------------- ----------- ----------- ------------ -------------
Secured total 87,197 94,159 94,445 94,726 85,641
------------- ----------- ----------- ------------ -------------
Unsecured
Fixed rate bonds and notes 265,000 265,000 265,000 265,000 265,000
Credit facility 53,750 32,000 - - -
------------- ----------- ----------- ------------ -------------
Unsecured total 318,750 297,000 265,000 265,000 265,000
------------- ----------- ----------- ------------ -------------
Total $ 405,947 $ 391,159 $ 359,445 $ 359,726 $ 350,641
============= =========== =========== ============ =============
Average Interest Rates
Secured
Conventional fixed rate 7.3% 7.4% 7.4% 7.4% 7.5%
------------- ----------- ----------- ------------ -------------
Secured total 7.3% 7.4% 7.4% 7.4% 7.5%
------------- ----------- ----------- ------------ -------------
Unsecured
Fixed rate bonds 7.4% 7.4% 7.4% 7.4% 7.4%
Credit facilities 2.5% 2.6% 0.0% 0.0% 0.0%
------------- ----------- ----------- ------------ -------------
Unsecured total 6.6% 6.9% 7.4% 7.4% 7.4%
------------- ----------- ----------- ------------ -------------
Average 7.3% 7.3% 7.4% 7.4% 7.4%
============= =========== =========== ============ =============
Maturity Schedule
Future Maturities of Debt Average
---------------------------------
Year Secured Debt Unsecured Debt Total Debt Interest Rate
-------------- ---------------- ------------- ---------------
2002 $ 246 $ 53,750 $ 53,996 2.5%
2003 1,030 50,000 51,030 7.5%
2004 1,110 55,000 56,110 7.9%
2005 26,634 - 26,634 7.7%
2006 331 50,000 50,331 7.5%
2007 7,846 - 7,846 6.8%
2008 - 60,000 60,000 6.7%
2009 50,000 - 50,000 7.1%
2010 - - - 0.0%
2011 - - - 0.0%
Thereafter - 50,000 50,000 7.4%
------------ -------------- ----------- -----
Total maturities $ 87,197 $ 318,750 $ 405,947 7.3%
============ ============== =========== =====
Weighted average maturity = 6.9 years
6
Washington Real Estate Investment Trust
Capital Analysis
(In thousands, except per share amounts)
================================================================================
September 30, June 30, March 31, December 31, September 30,
2002 2002 2002 2001 2001
--------------- --------------- --------------- --------------- ---------------
Market Data
Shares Outstanding 39,146 39,114 38,988 38,829 38,693
Market Price per Share $ 25.38 $ 28.90 $ 28.75 $ 24.89 $ 23.72
Equity Market Capitalization $ 993,525 $ 1,130,395 $ 1,120,905 $ 966,454 $ 917,798
Total Debt 405,947 391,159 $ 359,445 $ 359,726 $ 350,641
Total Market Capitalization 1,399,472 1,521,554 $ 1,480,350 $ 1,326,180 $ 1,268,439
Total Debt to Market Capitalization 0.29:1 0.26:1 0.24:1 0.27:1 0.28:1
============== =============== =============== =============== ===============
Earnings to Fixed Charges/1/ 2.6x 2.7x 2.8x 2.8x 2.9x
Debt Service Coverage Ratio 3.6x 3.6x 3.7x 3.7x 3.7x
Dividend Data
Common Dividend per Share $ 0.3525 $ 0.3525 $ 0.3325 $ 0.3325 $ 0.3325
Payout Ratio (FFO per share basis) 73.4% 73.4% 67.0% 66.8% 66.5%
Payout Ratio (FAD per share basis) 88.1% 88.1% 79.2% 75.6% 75.6%
/1/(Income before sale of real estate / (interest expense + capitalized interest
+ amortized costs of debt issuance))
7
Washington Real Estate Investment Trust
Core Portfolio Operating Income (NOI) Growth & Rental Rate Growth
Q3 2002 vs. Q3 2001
================================================================================
Cash Basis
NOI Rental Rate
Sector Growth Growth
---------------------------- ---------------- --------------
Multifamily -0.3% 5.7%
Office Buildings (1) -7.2% 4.6%
Retail Centers 7.5% 7.8%
Industrial / Flex Properties 0.4% 4.8%
Overall Core Portfolio -3.6% 5.2%
GAAP Basis
NOI Rental Rate
Sector Growth Growth
---------------------------- ---------------- --------------
Multifamily -0.5% 5.6%
Office Buildings (1) -8.2% 4.0%
Retail Centers 7.5% 7.8%
Industrial / Flex Properties -0.6% 4.4%
Overall Core Portfolio -4.6% 4.8%
(1) NOI and Rental Rate Growth Q3 2002 vs. Q3 2001 excluding the 149,000 square
feet of vacant space at 7900 Westpark Drive: -2.6% and 4.6% - Cash Basis and
-3.6% and 4.0% - GAAP basis.
8
Washington Real Estate Investment Trust
Core Portfolio & Overall Occupancy Levels by Sector
Q3 2002 vs. Q3 2001
================================================================================
GAAP Basis
Core Portfolio All Properties
================================ ================================
3rd QTR 3rd QTR 3rd QTR 3rd QTR
Sector 2002 2001 2002 2001
- ---------------------------- -------------- --------------- -------------- ---------------
Multifamily 94.6% 96.3% 94.6% 96.3%
Office Buildings /(1)/ 88.5% 97.2% 87.6% 97.1%
Retail Centers 94.9% 95.3% 95.1% 95.3%
Industrial / Flex Properties 91.9% 98.7% 93.0% 98.8%
-------------- --------------- -------------- ---------------
Overall Portfolio 90.9% 97.0% 90.7% 96.9%
/(1)/ Occupancy for the Core Portfolio and All Properties excluding the 149,000
square feet of vacant space at 7900 Westpark Drive is 93.1% and 92.1%
9
Washington Real Estate Investment Trust
Schedule of Properties
September 30, 2002
YEAR YEAR NET RENTABLE
PROPERTIES LOCATION ACQUIRED CONSTRUCTED SQUARE FEET
- ----------------------------------- -------------------- -------------------- ----------------- ----------------
Office Buildings
- ----------------
1901 Pennsylvania Avenue Washington, DC 1977 1960 96,563
51 Monroe Street Rockville, MD 1979 1975 209,680
7700 Leesburg Pike Falls Church, VA 1990 1976 146,692
515 King Street Alexandria, VA 1992 1966 77,667
The Lexington Building Rockville, MD 1993 1970 46,317
The Saratoga Building Rockville, MD 1993 1977 58,611
Brandywine Center Rockville, MD 1993 1969 35,128
Tycon Plaza II Vienna, VA 1994 1981 127,530
Tycon Plaza III Vienna, VA 1994 1978 151,242
6110 Executive Boulevard Rockville, MD 1995 1971 199,025
1220 19th Street Washington, DC 1995 1976 102,983
Maryland Trade Center I Greenbelt, MD 1996 1981 189,803
Maryland Trade Center II Greenbelt, MD 1996 1984 158,466
1600 Wilson Boulevard Arlington, VA 1997 1973 166,484
7900 Westpark Drive McLean, VA 1997 1972/1986/1999/1/ 525,530
8230 Boone Boulevard Vienna, VA 1998 1981 57,918
Woodburn Medical Park I Annandale, VA 1998 1984 71,613
Woodburn Medical Park II Annandale, VA 1998 1988 96,268
600 Jefferson Plaza Rockville, MD 1999 1985 115,055
1700 Research Boulevard Rockville, MD 1999 1982 102,602
Parklawn Plaza Rockville, MD 1999 1986 40,395
Wayne Plaza Silver Spring, MD 2000 1970 90,956
Courthouse Square Alexandria, VA 2000 1979 112,930
One Central Plaza Rockville, MD 2001 1974 267,072
The Atrium Building Rockville, MD 2002 1980 81,390
----------------
Subtotal 3,327,920
================
Retail Centers
- --------------
Takoma Park Takoma Park, MD 1963 1962 50,973
Westminster Westminster, MD 1972 1969 145,549
Concord Centre Springfield, VA 1973 1960 75,948
Wheaton Park Wheaton, MD 1977 1967 72,419
Bradlee Alexandria, VA 1984 1955 167,583
Chevy Chase Metro Plaza Washington, DC 1985 1975 49,334
Montgomery Village Center Gaithersburg, MD 1992 1969 196,522
Shoppes of Foxchase Alexandria, VA 1994 1960 128,027
Frederick County Square Frederick, MD 1995 1973 234,523
800 S. Washington Street Alexandria, VA 1998 1955/1959 51,372
Centre at Hagerstown Hagerstown, MD 2002 2000 333,946
----------------
Subtotal 1,506,196
================
/1/ A 49,000 square foot addition to 7900 Westpark Drive was completed in
September 1999.
10
Washington Real Estate Investment Trust
Schedule of Properties (Cont.)
September 30, 2002
YEAR YEAR NET RENTABLE*
PROPERTIES LOCATION ACQUIRED CONSTRUCTED SQUARE FEET
- ----------------------------------------- --------------------------- ----------------- ----------------- ----------------
Multifamily Buildings / # units
- -------------------------------
3801 Connecticut Avenue / 307 Washington, DC 1963 1951 177,403
Roosevelt Towers / 190 Falls Church, VA 1965 1964 167,710
Country Club Towers / 227 Arlington, VA 1969 1965 158,960
Park Adams / 200 Arlington, VA 1969 1959 172,423
Munson Hill Towers / 279 Falls Church, VA 1970 1963 258,525
The Ashby at McLean / 250 McLean, VA 1996 1982 244,220
Walker House Apartments / 196 Gaithersburg, MD 1996 1971 145,196
Bethesda Hills Apartments / 194 Bethesda, MD 1997 1986 225,570
Avondale / 236 Laurel, MD 1999 1987 170,031
----------------
Subtotal (2,079 units) 1,720,038
================
Industrial Distribution / Flex Properties
- -----------------------------------------
Fullerton Business Center Springfield, VA 1985 1980 103,692
Pepsi-Cola Distribution Center Forestville, MD 1987 1971 68,750
Charleston Business Center Rockville, MD 1993 1973 85,306
Tech 100 Industrial Park Elkridge, MD 1995 1990 166,780
Crossroads Distribution Center Elkridge, MD 1995 1987 84,550
The Alban Business Center Springfield, VA 1996 1981/1982 86,684
The Earhart Building Chantilly, VA 1996 1987 89,740
Ammendale Technology Park I Beltsville, MD 1997 1985 166,513
Ammendale Technology Park II Beltsville, MD 1997 1986 107,800
Pickett Industrial Park Alexandria, VA 1997 1973 246,108
Northern Virginia Industrial Park Lorton, VA 1998 1968/1991 788,489
8900 Telegraph Road Lorton, VA 1998 1985 31,736
Dulles South IV Chantilly, VA 1999 1988 83,078
Sully Square Chantilly, VA 1999 1986 95,168
Amvax Beltsville, MD 1999 1986 30,800
Sullyfield Center Chantilly, VA 2001 1985 244,581
----------------
Subtotal 2,479,775
================
TOTAL 9,033,929
================
* Multifamily buildings are presented in gross square feet.
11
Washington Real Estate Investment Trust
Commercial Leasing Summary
Three months ended September 30, 2002
==============================================================================================================================
3rd Quarter 2002 YTD 2002
----------------------------------- -----------------------------------
Gross Leasing Square Footage
Office Buildings 100,525 424,693
Retail Centers 74,481 150,914
Industrial Centers 155,961 308,377
----------------------------------- -----------------------------------
Total 330,967 883,984
----------------------------------- -----------------------------------
Weighted Average Term (yrs)
Office Buildings 3.4 3.5
Retail Centers 6.2 5.5
Industrial Centers 2.8 4.1
----------------------------------- -----------------------------------
Total 3.8 4.1
----------------------------------- -----------------------------------
Rental Rate Increases: GAAP CASH GAAP CASH
----------------------------------- -----------------------------------
Rate on expiring leases
Office Buildings $ 24.58 $ 25.06 $ 23.38 $ 23.83
Retail Centers $ 15.12 $ 15.40 $ 15.21 $ 15.44
Industrial Centers $ 6.73 $ 6.83 $ 6.62 $ 6.72
----------------------------------- -----------------------------------
Total $ 14.04 $ 14.30 $ 16.14 $ 16.43
----------------------------------- -----------------------------------
Rate on new and renewal leases
Office Buildings $ 28.15 $ 27.06 $ 26.11 $ 25.04
Retail Centers $ 18.40 $ 17.20 $ 18.78 $ 17.56
Industrial Centers $ 7.80 $ 7.54 $ 7.71 $ 7.26
----------------------------------- -----------------------------------
Total $ 16.37 $ 15.64 $ 18.44 $ 17.56
----------------------------------- -----------------------------------
Percentage Increase
Office Buildings 14.52% 7.98% 11.68% 5.08%
Retail Centers 21.69% 11.69% 23.47% 13.73%
Industrial Centers 15.90% 10.40% 16.47% 8.04%
----------------------------------- -----------------------------------
Total 16.60% 9.37% 14.25% 6.88%
----------------------------------- -----------------------------------
Total Dollars Square Foot Total Dollars Square Foot
----------------------------------- -----------------------------------
Tenant Improvements and Leasing Costs
Office Buildings $ 1,249,492 $ 12.43 $ 4,230,300 $ 9.96
Retail Centers $ 311,576 $ 4.18 $ 638,298 $ 4.23
Industrial Centers $ 201,626 $ 1.29 $ 863,778 $ 2.80
----------------------------------- -----------------------------------
Total $ 1,762,694 $ 5.33 $ 5,732,376 $ 6.48
----------------------------------- -----------------------------------
12
Washington Real Estate Investment Trust
10 Largest Tenants - Based on Annualized Rent
September 30, 2002
==========================================================================================================================
Weighted Percentage Percentage
Average of Aggregate of Aggregate
Remaining Portfolio Aggregate Occupied
Number of Lease Term Annualized Rentable Square
Tenant Buildings in Months Rent Square Feet Feet
------ --------- --------- ---- ----------- ----
Lockheed Corporation 2 18 3.86% 189,375 2.92%
SunTrust Bank 4 29 2.58% 104,291 1.61%
Sun Microsystems, Inc. 1 51 2.54% 110,184 1.70%
Xerox Corporation 1 23 2.54% 90,994 1.40%
General Services Administration 6 21 1.91% 229,999 3.55%
INOVA Health Systems 2 81 1.41% 53,196 0.82%
United Communications Group 1 68 1.39% 60,087 0.93%
Sunrise Assisted Living 1 106 1.19% 48,775 0.75%
TRW, Inc. 2 25 1.07% 65,739 1.01%
Logicon, Inc.
(a Northrop Grumman Company) 1 4 1.02% 57,198 0.88%
---------------- --------------- ----------------
Total/Weighted Average 19.51% 1,009,838 15.57%
================ =============== ================
13
Washington Real Estate Investment Trust
Lease Expirations
September 30, 2002
================================================================================
Percent of Average Percent of
Number of Rentable Rentable Annualized Rental Annualized
Year Leases Square Feet Square Feet Rent * Rate Rent *
---- ------ ----------- ----------- ------ ---- ------
Office:
2002 30 125,136 4.4% $ 2,945,527 $ 23.54 4.1%
2003 155 569,160 20.2% 13,656,529 23.99 19.2%
2004 113 731,804 26.0% 18,501,557 25.28 26.0%
2005 97 293,917 10.5% 7,410,304 25.21 10.4%
2006 68 455,371 16.2% 12,087,755 26.54 17.0%
2007 and thereafter 103 636,946 22.7% 16,501,329 25.91 23.3%
---------------- ---------------- ---------------- ----------------- --------------- ----------------
566 2,812,334 100.0% $ 71,103,003 $ 25.28 100.0%
================ ================ ================ ================= =============== ================
Retail:
2002 4 13,655 1.0% $ 99,581 $ 7.29 0.5%
2003 39 213,265 15.1% 2,295,497 10.76 11.0%
2004 41 157,347 11.2% 2,162,460 13.74 10.4%
2005 45 214,372 15.2% 3,682,674 17.18 17.7%
2006 33 106,590 7.6% 2,152,614 20.20 10.3%
2007 and thereafter 98 703,346 49.9% 10,462,675 14.88 50.1%
---------------- ---------------- ---------------- ----------------- --------------- ----------------
260 1,408,575 100.0% $ 20,855,500 $ 14.81 100.0%
================ ================ ================ ================= =============== ================
Industrial:
2002 21 161,666 7.1% $ 1,052,871 $ 6.51 6.2%
2003 48 522,981 23.1% 4,029,611 7.71 23.6%
2004 40 418,742 18.5% 2,954,050 7.05 17.3%
2005 33 416,855 18.4% 2,776,386 6.66 16.3%
2006 25 327,006 14.4% 2,987,483 9.14 17.5%
2007 and thereafter 27 418,896 18.5% 3,263,445 7.79 19.1%
---------------- ---------------- ---------------- ----------------- --------------- ----------------
194 2,266,146 100.0% $ 17,063,846 $ 7.53 100.0%
================ ================ ================ ================= =============== ================
Total:
2002 55 300,457 4.6% $ 4,097,979 $ 13.64 3.8%
2003 242 1,305,406 20.1% 19,981,637 15.31 18.3%
2004 194 1,307,893 20.2% 23,618,067 18.06 21.7%
2005 175 925,144 14.3% 13,869,364 14.99 12.7%
2006 126 888,967 13.7% 17,227,852 19.38 15.8%
2007 and thereafter 228 1,759,188 27.1% 30,227,450 17.18 27.7%
---------------- ---------------- ---------------- ----------------- --------------- ----------------
1,020 6,487,055 100.0% $ 109,022,349 $ 16.81 100.0%
================ ================ ================ ================= =============== ================
* Annualized Rent is as of September 30, 2002 rental revenue (cash basis)
multiplied by 12.
14
Washington Real Estate Investment Trust
2002 Acquisition Summary
(Dollars in thousands)
=============================================================================================================================
September 30,
Occupied Occupancy 2002
Acquisition Square Sq. Ft. at Percentage at Leased
Date Feet Acquisition Acquisition Percentage Investment
--------------- -------------- --------------- -------------- --------------- -------------
1620 Wilson Boulevard 1/25/2002 5,364 5,364 100% 100% $ 2,250,000
Centre at Hagerstown 6/21/2002 326,846 320,309 98% 98% 41,700,000
The Atrium Building 7/23/2002 81,390 37,600 46% 94% 14,200,000
-------------
$ 58,150,000
=============
2002 Disposition Summary
(Dollars in thousands)
=============================================================================================================================
Disposition Square Gross Sales Cash
Date Feet Proceeds Proceeds
--------------- -------------- --------------- --------------
1501 South Capitol Street 2/28/2002 145,000 $ 6,200 $ 5,800
15
WRIT vs. Morgan Stanley REIT Index, Russell 2000 Index & Wilshire REIT Index
12, 24, 36,48 and 60 Month Total Returns
through September 30, 2002
[GRAPH]
12 Month 24 Month 36 Month 48 Month 60 Month
WRIT 13% 41% 92% 100% 103%
RMS Index 9% 21% 47% 38% 19%
Wilshire REIT Index 1% 5% 22% 12% 12%
Russell 2000 Index -9% -28% -11% 5% -14%
16