CONTACT:

Sara Grootwassink

Executive Vice President and

6110 Executive Blvd., Suite 800

Rockville, Maryland 20852

Tel 301-984-9400

WASHINGTON REAL ESTATE INVESTMENT TRUST ANNOUNCES

9% FFO PER SHARE GROWTH FOR THE YEAR 2007

Net income for the year ending December 31, 2007 was $1.34 per diluted share, compared to $0.88 per diluted share in 2006. Net income for the quarter ending December 31, 2007 was $0.18 per diluted share, compared to $0.22 per diluted share in the same period one year ago.

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Funds from Operations (FFO)⁽¹⁾ for the year ending December 31, 2007 increased 9% to $2.31 per diluted share compared to $2.12 per diluted share the prior year. FFO for the quarter ending December 31, 2007 of $0.59 per diluted share increased 5% over the same period in the prior year compared to $0.56 per diluted share.

Office properties’ core NOI for the fourth quarter increased 6.2% compared to the same period one year ago. Economic occupancy increased 310 bps to 95.3%, mainly due to leasing at 7900 Westpark, 1600 Wilson Boulevard, and Lexington office buildings. Rental rate growth for the office sector was 2.7%.

Retail properties’ core NOI for the fourth quarter increased 13.7% compared to the same period one year ago. Rental rate growth was 4.1%, primarily due to rate increases at the newly redeveloped Shoppes at Foxchase, Frederick County Square and Bradlee Shopping Center. Economic occupancy increased 130 bps to 96.1% due to occupancy gains at Montrose Shopping Center.

Industrial properties’ core NOI for the fourth quarter increased 2.7% compared to the same period one year ago due to rental rate growth of 2.9%. Economic occupancy increased 140 bps to 96.0% from the same quarter one year ago.

Medical office properties’ core NOI for the fourth quarter increased 8.2% compared to the same period one year ago. Rental rate growth was 2.1% and economic occupancy remains high for the medical office sector at 97.9%.

Multifamily properties’ core NOI for the fourth quarter increased 2.8% compared to the same period one year ago. Rental rate growth was 4.9% while economic occupancy declined 350 bps quarter-over-quarter to 90.5%. Rental rate growth was driven by new leases at 3801 Connecticut Avenue, Bethesda Hill Apartments and Avondale Apartments.

Rental rates for new and renewed retail leases increased 37.3%, with $3.29 per square foot in tenant improvement costs.

Rental rates for new and renewed office leases increased 11.6%, with $12.32 per square foot in tenant improvement costs.

Rental rates for new and renewed medical office leases increased 25.5%, with $20.42 per square foot in tenant improvement costs.

Rental rates for new and renewed industrial/flex leases increased 15.7%, with $2.13 per square foot in tenant improvement costs.

In July, WRIT completed base construction on Dulles Station, a 180,000 square foot development project of Class A office and retail space located in Herndon, VA. The building, prominently visible from the Dulles Toll Road, is part of a mixed-use development which will include 1,095 multifamily units and 56,000 square feet of retail and restaurant space.

This quarter WRIT delivered the majority of units at Bennett Park. Bennett Park is a ground-up development project in Arlington, VA consisting of high-rise and mid-rise Class A apartment buildings with a total of 224 units and 5,900 square feet of retail space. The property was 24% leased at year-end.

Subsequent to year-end, WRIT began delivering units at The Clayborne Apartments. The Clayborne is a ground-up development project in Alexandria, VA, adjacent to our 800 South Washington retail property. The project consists of a 74-unit Class A apartment building that will include 2,600 square feet of additional retail space.

Net Operating Income for the overall portfolio is expected to increase 7–9% over 2007. Core Portfolio NOI is expected to increase 1.5–2.5%.

The Bennett Park and Clayborne apartment developments are projected to be ratably leased throughout 2008 and to be 95% leased by year-end. Due to weakness in the Northern Virginia market, guidance assumes no rental income at Dulles Station until 2009.

Guidance assumes $100-120 million of real estate acquisitions. The acquisitions will be funded with borrowings on WRIT’s line of credit, unsecured and secured term debt and reinvested net disposition proceeds for properties expected to be sold in the second and third quarters.

Projected interest expense will increase 13-16% over the prior year. The increase is primarily due to interest recognition on the completion of three development projects, which had previously been capitalized.

General & administrative expense is projected to decrease by 9-11%, primarily due to one time expenses in 2007, including compensation for a retiring executive and bond consent solicitation fees.

In the first quarter, WRIT will complete an extinguishment of debt on $60 million of 10-year Mandatory Par Put Remarketed Securities (“MOPPRS”) that are due for remarketing on February 25, 2008, resulting in an $8.4 million non-recurring charge related to the current benchmark treasury rate. WRIT will refinance the 6.74% debt, plus refinance a portion of line outstandings, by issuing a $100 million 2-year term loan, which will be swapped for a fixed rate of 4.5%. By extinguishing the debt, WRIT estimates it will save approximately $5.6 million of interest expense in the first two years alone.

2008 Earnings Guidance

Projected FFO per share (diluted), excl. non-recurring items

Less:

Projected Tenant Improvements, Recurring Capital Improvements, Capitalized Leasing Commissions, and Straight-Line Rent

Add:

Non-Real Estate Depreciation & Amortization, Amortization of Lease Intangibles, Amortization of Restricted Shares, and Other

Projected FAD per share (diluted), excl. non-recurring items

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Non-recurring Item: Loss on Extinguishment of Debt

Projected FFO per share (diluted)

Projected FAD per share (diluted)

⁽¹⁾

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.

⁽²⁾

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.

⁽³⁾

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.

Sector

Residential

Office

Medical Office

Retail

Industrial

Overall Portfolio

⁽ⁱ⁾

Core portfolio properties include all properties that were owned for the entirety of the current and prior year reporting periods. For Q4 2007 and Q4 2006, core portfolio properties exclude:

⁽ⁱⁱ⁾

Residential occupancy for all properties decreased from 94.0% to 84.9%, primarily due to the completion of Bennett Park. At 12/31/07, 211 of 224 units were complete, and 50 units (23.6%) were occupied.

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 life insurance proceeds

Income from continuing operations

Discontinued operations:

Income from operations of properties sold or held for sale

Gain on property disposed

Net Income

Income from continuing operations

Other income from life insurance proceeds

Continuing operations real estate depreciation and amortization

Funds from continuing operations

Income 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 ⁽³⁾

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 real estate held for investment, net

Investment in real estate sold or held for sale

Cash and cash equivalents

Restricted cash

Rents and other receivables, net of allowance for doubtful accounts of $4,227 and $3,258, respectively

Prepaid expenses and other assets

Other assets related to property sold or held for sale

Total Assets

Liabilities

Notes payable

Mortgage notes payable

Lines of credit

Accounts payable and other liabilities

Advance rents

Tenant security deposits

Other liabilities related to property sold or held for sale

Total Liabilities

Minority interest

Shareholders’ Equity

Shares of beneficial interest, $0.01 par value; 100,000 shares authorized: 46,682 and 45,042 shares issued and outstanding, respectively

Additional paid-in capital

Distributions in excess of net income

Total Shareholders’ Equity

Total Liabilities and Shareholders’ Equity

⁽⁴⁾

Includes cost of land acquired for in development properties.