CONTACT:

Sara Grootwassink

6110 Executive Blvd., Suite 800

Rockville, Maryland 20852

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Funds from Operations (FFO) ⁽¹⁾ for the quarter ended December 31, 2006 was $25.2 million, or $0.56 per diluted share, an increase of $2.4 million, or $0.02 per diluted share from the prior year.

Net income for the quarter ended December 31, 2006 was $10.1 million, or $0.22 per diluted share, compared to $11.1 million, or $0.26 per diluted share in the same period one year ago. The decrease is primarily due to higher interest expense and, on a per share basis, due to increased dilution from the equity offering in June 2006.

Funds from Operations (FFO) for the year ended December 31, 2006 was $92.8 million, or $2.12 per diluted share, an increase of $5.4 million, or $0.05 per diluted share from the prior year.

Net income for the year ended December 31, 2006 was $38.7 million, or $0.88 per diluted share, compared to $77.6 million, or $1.84 per diluted share in 2005. The decrease is primarily due to a $37.0 million gain on property disposal, higher interest expense, and higher depreciation and amortization associated with owning more properties.

Multifamily and Industrial properties’ Core NOI increased 12.0% and 3.5%, respectively, primarily due to higher rental rates achieved in both sectors.

General purpose office properties’ Core NOI increased 5.4% primarily due to increased occupancy, 320 bps higher than the same period last year, primarily from the lease up of Maryland Trade Center I.

Retail properties’ Core NOI increased 1.8% primarily due to the increased revenues from the Harris Teeter lease at The Shoppes at Foxchase.

Medical office properties’ Core NOI increased 0.4%, with 98.5% core occupancy for the fourth quarter.

Bennett Park, formerly Rosslyn Towers, is a ground-up development project in Arlington, VA consisting of a high-rise and a mid-rise Class A apartment building with a total of 224 units and 5,900 square feet of retail space. Construction is anticipated to be completed on the high-rise building in third quarter 2007 and on the mid-rise in second quarter 2007. Total cost of the project is estimated to be $76.6 million.

The Clayborne Apartments, formerly South Washington Street, is a ground-up development project in Alexandria, VA, adjacent to our 800 South Washington retail property. This project is a 75-unit Class Apartment building that will include 2,600 square feet of additional retail space. Construction is anticipated to be completed on the building in third quarter 2007. Total cost of the project is estimated to be $32.7 million.

Dulles Station is a 180,000 square feet development project of office and retail space located in Herndon, VA. Phase One of the Dulles Station development is anticipated to be completed third quarter 2007 with an estimated cost of $52.0 million.

WRIT acquired 14 properties for a total cost of $303 million during the year. The acquisitions include 533,100 square feet of general purpose office, 404,770 square feet of industrial, 227,200 square feet of retail shopping centers, and 337,100 square feet of medical office properties.

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WRIT raised over $350 million of capital, issuing $110 million of 3.875% Convertible Senior Notes, $150 million of 5.95% Senior Unsecured Notes, and 2.7 million common shares. In addition, WRIT entered into an unsecured revolving credit facility with an initial capacity of $200 million, an increase of $115 million from the prior facility.

The Board added two Trustees, Mr. Edward S. Civera and Mr. Thomas E. Russell, III. Mr. George F. “Skip” McKenzie was appointed President and Chief Operating Officer effective May 30, 2006.

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WRIT increased its dividend for the 36^th consecutive year and achieved its 34^th consecutive year of increased FFO per share.

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Funds From Operations (“FFO”) – The National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) defines FFO (April, 2002 White Paper) as net income (computed in accordance with generally accepted accounting principles (“GAAP”)) excluding gains (or losses) from sales of property plus real estate depreciation and amortization. We consider 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 FFO more accurately provides investors an indication of our ability to incur and service debt, make capital expenditures and fund other needs.

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Funds Available for Distribution (“FAD”) is calculated by subtracting from FFO (1) recurring expenditures, tenant improvements and leasing costs that are capitalized and amortized and are necessary to maintain our properties and revenue stream and (2) straight line rents, then adding (3) non-real estate depreciation and amortization, (4) amortization of restricted share and unit compensation, and adding or subtracting amortization of lease intangibles, as appropriate. FAD is included herein, because we consider it to be a 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.

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For purposes of evaluating comparative operating performance, we categorize our properties as “core” or “non-core”. Core Operating NOI is calculated as real estate rental revenue less real estate operating expenses for those properties owned for the entirety of the periods being evaluated. Core Operating NOI is a non-GAAP measure.

Sector

Multifamily

Office Buildings

Medical Office

Retail Centers

Industrial/Flex Centers

Overall Portfolio

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Core portfolio properties include all properties that were owned for the entirety of the current and prior year reporting periods. For Q4 2006 and Q4 2005, core portfolio properties exclude:

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Multifamily occupancy level for Q406 is 94.6% without the impact of units off-line for planned renovations at Bethesda Hill. The overall portfolio occupancy is 94.4% without this impact.

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Montrose Shopping Center was 58% leased when purchased in May 2006.

OPERATING RESULTS

Revenue

Real estate rental revenue

Expenses

Real estate expenses

Depreciation and amortization

General and administrative

Other (expense) income:

Interest expense

Other income

Other income from property settlement

Income from continuing operations

Discontinued operations:

Income (loss) from operations of properties sold or held for sale

Gain on property disposed

Net Income

Income from continuing operations

Other income from property settlement

Continuing operations real estate depreciation and amortization

Funds from continuing operations

Income (loss) from discontinued operations before gain on disposal

Discontinued operations real estate depreciation and amortization

Funds from discontinued operations

Funds from operations⁽¹⁾

Tenant improvements

External and internal leasing commissions capitalized

Recurring capital improvements

Straight-line rents, net

Non real estate depreciation & amortization of debt costs

Amortization of lease intangibles, net

Amortization and expensing of Restricted Share and Unit Compensation

Other

Funds Available for Distribution ⁽²⁾

Per Share Data

Income from continuing operations

Net income

Funds from continuing operations

Funds from operations

Dividends paid

Weighted average shares outstanding

Fully diluted weighted average shares outstanding

Assets

Land

Income producing property

Accumulated depreciation and amortization

Net income producing property

Development in progress ⁽⁴⁾

Total investment in real estate, net

Cash and cash equivalents

Restricted cash

Rents and other receivables, net of allowance for doubtful accounts of 3,635 and 2,916, respectively

Prepaid expenses and other assets

Total Assets

Liabilities

Notes payable

Mortgage notes payable

Lines of credit

Accounts payable and other liabilities

Advance rents

Tenant security deposits

Total Liabilities

Minority interest

Shareholders’ Equity

Shares of beneficial interest, $.01 par value; 100,000 shares authorized: 45,042 and 42,139 shares issued and outstanding, respectively

Additional paid-in capital

Distributions in excess of net income

Total Shareholders’ Equity

Total Liabilities and Shareholders’ Equity

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Includes cost of land acquired for development.