Washington Real Estate Investment Trust Announces Fourth Quarter and Year-End Operating Results for 2009

ROCKVILLE, Md.--(BUSINESS WIRE)-- Washington Real Estate Investment Trust (WRIT) (NYSE:WRE) reported financial and operating results today for the quarter and year ending December 31, 2009:

    --  Net income attributable to the controlling interests for the year ending
        December 31, 2009 was $40.7 million, or $0.71 per diluted share,
        compared to $27.1 million, or $0.55 per diluted share, in 2008. Included
        in 2009 net income per share is a $0.09 gain on extinguishment of debt.
        Included in 2008 net income per share is an $0.11 loss related to the
        extinguishment of debt. Also included in 2009 and 2008 full year net
        income per share are respective charges of $0.13 and $0.12 per diluted
        share from the adoption of an accounting pronouncement impacting the
        accounting of our 3.875% convertible notes(1).
    --  Net income attributable to the controlling interests for the quarter
        ending December 31, 2009 was $7.3 million, or $0.12 per diluted share,
        compared to $5.3 million, or $0.10 per diluted share, in the same period
        one year ago. Included in the fourth quarter 2009 and fourth quarter
        2008 net income are respective charges of $0.01 and $0.04 per diluted
        share from the adoption of an accounting pronouncement impacting the
        accounting of our 3.875% convertible notes(1).
    --  Funds from Operations (FFO)(2) for the year ending December 31, 2009 was
        $121.8 million, or $2.14 per diluted share, compared to $98.7 million,
        or $2.00 per diluted share, in 2008. FFO for the quarter ending December
        31, 2009 was $29.7 million, or $0.50 per diluted share, compared to
        $28.9 million, or $0.55 per diluted share, in the same period one year
        ago.

Capital Structure

In the fourth quarter, WRIT used capacity on its line of credit to prepay its $100 million unsecured term loan due in November 2011, incurring a one-time charge of $1.5 million. WRIT also repurchased $8.1 million of its 3.875% convertible notes at an average discounted price of 96.9% of par for approximately $7.8 million. Subsequent to the quarter end, WRIT repurchased an additional $1.2 million of its convertible notes at an average discounted price of 99.3% of par.

WRIT completed the sale of Crossroads Distribution Center, an 85,000 square foot industrial property in Elkridge, Maryland, for $4.4 million and a net book gain of $1.5 million.

On December 31, 2009, WRIT paid a quarterly dividend of $0.4325 per share for its 192nd consecutive quarterly dividend at equal or increasing rates.

As of December 31, 2009, WRIT had a total market capitalization of $2.9 billion.(3)

Operating Results

Overall portfolio economic occupancy for the fourth quarter was 92.4%, compared to 92.6% in the same period one year ago and 93.0% in the third quarter of 2009. Overall portfolio Net Operating Income (NOI)(4) was $51.7 million compared to $47.1 million in the same period one year ago and $49.7 million in the third quarter of 2009.

Core(5) portfolio economic occupancy for the fourth quarter was 92.7%, a decrease of 100 basis points (bps) from the same period one year ago. Compared to the third quarter, core portfolio economic occupancy decreased 10 bps. Core portfolio NOI for the fourth quarter increased 4.8% and rental rate growth was 1.9% compared to the same period one year ago.

    --  Multifamily properties' core NOI for the fourth quarter increased 0.8%
        compared to the same period one year ago. Rental rate growth was -1.8%
        while core economic occupancy increased 170 bps to 94.5%. Sequentially,
        core economic occupancy increased 20 bps from the third quarter of 2009.
        The multifamily segment contributed 13.4% of our overall NOI for the
        fourth quarter of 2009.
    --  Office properties' core NOI for the fourth quarter increased 6.6%
        compared to the same period one year ago. Rental rate growth was 5.5%
        while core economic occupancy decreased 130 bps to 92.0%. Sequentially,
        core economic occupancy increased 30 bps from the third quarter of 2009.
        The office segment contributed 44.0% of our overall NOI for the fourth
        quarter of 2009.
    --  Medical office properties' core NOI for the fourth quarter increased
        2.1% compared to the same period one year ago. Rental rate growth was
        2.4% while core economic occupancy increased 70 bps to 95.9%.
        Sequentially, core economic occupancy decreased 10 bps from the third
        quarter of 2009. The medical office segment contributed 14.3% of our
        overall NOI for the fourth quarter of 2009.
    --  Retail properties' core NOI for the fourth quarter increased 16.3%
        compared to the same period one year ago. Rental rate growth was -0.3%
        while core economic occupancy decreased 40 bps to 94.4%. Sequentially,
        core economic occupancy increased 40 bps from the third quarter of 2009.
        The retail segment contributed 15.7% of our overall NOI for the fourth
        quarter of 2009.
    --  Industrial properties' core NOI for the fourth quarter decreased 5.2%
        compared to the same period one year ago. Rental rate growth was -3.1%
        while core economic occupancy decreased 590 bps to 87.1%. Sequentially,
        core economic occupancy decreased 250 bps from the third quarter of
        2009. The industrial segment contributed 12.6% of our overall NOI for
        the fourth quarter of 2009.

Leasing Activity

During the fourth quarter, WRIT signed commercial leases for 308,019 square feet with an average rental rate increase of 4.2% over expiring lease rates, an average lease term of 5.4 years, tenant improvement costs of $9.60 per square foot and leasing costs of $9.63 per square foot.

    --  Rental rates for new and renewed office leases increased 0.1% to $29.90
        per square foot, with $10.71 per square foot in tenant improvement costs
        and $12.83 per square foot in leasing costs.
    --  Rental rates for new and renewed medical office leases increased 28.0%
        to $38.88 per square foot, with $21.48 per square foot in tenant
        improvement costs and $20.48 per square foot in leasing costs.
    --  Rental rates for new and renewed retail leases decreased 0.2% to $13.67
        per square foot, with $7.48 per square foot in tenant improvement costs
        and $4.38 per square foot in leasing costs.
    --  Rental rates for new and renewed industrial/flex leases decreased 3.3%
        to $9.02 per square foot, with $1.45 per square foot in tenant
        improvement costs and $2.69 per square foot in leasing costs.

Residential rental rates decreased 1.8% in the fourth quarter compared to the same period one year ago.

Earnings Guidance

For 2010, WRIT expects FFO per fully diluted share to be $1.86 - $2.00. The following assumptions are incorporated into this guidance:

    --  Effective occupancy, which accounts for vacancy, bad debt and abatements
        as a percentage of minimum rent, ended 2009 at 11.8% and is expected to
        range between 11.5% and 12.5% throughout 2010. Every 100 basis point
        change in effective occupancy equates to approximately $0.05 per fully
        diluted share in FFO on an annual basis.
    --  Net operating income is expected to decline by a range of $0.00 - $0.05,
        including snow removal costs of $0.02 per fully diluted share after
        reimbursements.
    --  Dilution from the full year impact of issuing additional equity last
        year to reduce overall leverage is expected to lower FFO per fully
        diluted share by an additional $0.10 in 2010.
    --  Straight-line rent impact of the lease signed at 1776 G Street in
        mid-2009 is expected to add approximately $0.01 per fully diluted share
        to FFO as compared to 2009 results.
    --  Interest expense for 2010 is estimated to range between $0.02 - $0.05
        per fully diluted share lower than reported 2009 results due to the
        reduction in overall debt. This range includes a swap termination charge
        of $0.02 - $0.04 per fully diluted share depending on interest rates at
        the time of payment.
    --  General and administrative expense is estimated to range between $0.00 -
        $0.02 per fully diluted share lower than 2009 results.
    --  Acquisition volume of $50 - $150 million will negatively impact FFO by
        $0.00 - $0.03 per fully diluted share primarily due to the expensing of
        acquisition costs.
    --  Disposition volume of $25 - $75 million will negatively impact FFO by
        $0.02 - $0.03 per fully diluted share.

Conference Call Information

The Conference Call for 4th Quarter Earnings is scheduled for Friday, February 19, 2010 at 11:00 A.M. Eastern time. Conference Call access information is as follows:


USA Toll Free Number:         1-877-407-9205

International Toll Number:    1-201-689-8054



The instant replay of the Conference Call will be available until March 5, 2010 at 11:59 P.M. Eastern time. Instant replay access information is as follows:


USA Toll Free Number:         1-877-660-6853

International Toll Number:    1-201-612-7415

Account:                      286

Conference ID:                341356



The live on-demand webcast of the Conference Call will be available on the Investor section of WRIT's website at www.writ.com. On-line playback of the webcast will be available for two weeks following the Conference Call.

About WRIT

WRIT is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington metro region. WRIT owns a diversified portfolio of 90 properties totaling approximately 11 million square feet of commercial space and 2,540 residential units. These 90 properties consist of 27 office properties, 20 industrial/flex properties, 18 medical office properties, 14 retail centers, 11 multi-family properties and land for development. WRIT shares are publicly traded on the New York Stock Exchange (NYSE: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 our earnings release and on our conference call 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 include, but are not limited to, the effect of the current credit and financial market conditions, the availability and cost of capital, fluctuations in interest rates, tenants' financial conditions, the timing and pricing of lease transactions, levels of competition, the effect of government regulation, the impact of newly adopted accounting principles, changes in general and local economic and real estate market conditions, and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2008 Form 10-K, our third quarter 2009 10-Q and our Form 8-K filed July 10, 2009. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

(1) Financial Accounting Standards Board Staff Position APB14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) ("FSP 14-1"), requires the bifurcation of a component of our 3.875% convertible notes, classification of that component in shareholders' equity, and accretion of the resulting discount on the convertible notes to interest expense. As a result of the adoption of FSP 14-1, equity increased by $21.0 million as of December 31, 2009 and 2008. The principal balance of our 3.875% convertible notes was reduced by $4.3 million and $12.0 million as of December 31, 2009 and 2008, respectively, and the unamortized balance of the related loan origination costs was reduced by $2.1 million and $2.7 million, respectively. The decline in principal reflects the unamortized discount balance related to the adoption of FSP 14-1. Interest expense increased $3.6 million and $5.1 million in 2009 and 2008, respectively, as a result of the adoption. The gain (loss) on extinguishment of debt decreased $3.6 million and $0.6 million in 2009 and 2008, respectively, as a result of the adoption. Interest expense increased $0.7 million in the fourth quarter of 2009 and $1.3 million in the fourth quarter of 2008 as a result of the adoption. The gain (loss) on extinguishment of debt decreased $0.2 million in the fourth quarter of 2009 and $0.6 million in the fourth quarter of 2008 as a result of the adoption.

(2) 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. FFO is a non-GAAP measure and does not replace net income as a measure of performance or net cash provided by operating activities as a measure of liquidity. 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.

(3) Total market capitalization is calculated by multiplying the total outstanding common shares at period end by the closing share price on the last trading day of the period, and then adding the book value of the total outstanding debt at period end.

(4) Net Operating income ("NOI"), defined as real estate rental revenue less real estate expenses, is a non-GAAP measure. We provide NOI as a supplement to net income calculated in accordance with GAAP. As such, it should not be considered an alternative to net income as an indication of our operating performance. It is the primary performance measure we use to assess the results of our operations at the property level. 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 and general and administrative expenses.

(5) For purposes of evaluating comparative operating performance, we categorize our properties as "core" or "non-core". A core property is one that was owned for the entirety of the periods being evaluated. A non-core property is one that was acquired or placed into service during either of the periods being evaluated.

(6) Funds Available for Distribution ("FAD") is a non-GAAP measure. It 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. We consider FAD 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-standardized measure and may be calculated differently by other REITs.


Economic Occupancy Levels by Core Properties(i)and All Properties

                   Core Properties   All Properties

Segment            4th QTR  4th QTR  4th QTR       4th QTR

                   2009     2008     2009          2008

Residential        94.5%    92.8%    94.1%   (ii)  87.6%

Office             92.0%    93.3%    92.6%         93.2%

Medical Office     95.9%    95.2%    92.7%         95.2%

Retail             94.4%    94.8%    94.4%         94.8%

Industrial         87.1%    93.0%    87.3%         92.5%

Overall Portfolio  92.7%    93.7%    92.4%         92.6%




((i)) Core properties include all properties that were owned for the entirety of
the current and prior year reporting periods. For Q4 2009 and Q4 2008, core
properties exclude:

Residential Acquisitions: none;

Office Acquisition: 2445 M Street;

Medical Office Acquisition: Lansdowne Medical Office Building;

Retail Acquisitions: none;

Industrial Acquisitions: none.

Also excluded from Core Properties in Q4 2009 and Q4 2008 are:

Sold Properties: Avondale, Brandywine Center, Tech 100 and Crossroads
Distribution Center;

Held for Sale Property: Charleston Business Center;

In Development Properties: Bennett Park, Clayborne Apartments, and Dulles
Station.

(ii) Residential occupancy for all properties reflects the completion of Bennett
Park and Clayborne Apartments. At 12/31/09, 218 of 224 units were occupied at
Bennett Park and 69 of 74 units were occupied at Clayborne Apartments.




WASHINGTON REAL ESTATE INVESTMENT TRUST

FINANCIAL HIGHLIGHTS

(In thousands, except per share data)

(Unaudited)

                Three Months Ended December 31,  Twelve Months Ended December
                                                 31,

OPERATING       2009         2008                2009         2008
RESULTS

Revenue

Real estate     $ 77,866     $ 72,286            $ 306,929    $ 278,691
rental revenue

Expenses

Real estate       26,164       25,216              104,573      93,499
expenses

Depreciation
and               23,947       23,446              94,042       85,659
amortization

General and       3,174        3,297               13,906       12,110
administrative

                  53,285       51,959              212,521      191,268

Real estate
operating         24,581       20,327              94,408       87,423
income

Other income
(expense):

Interest          (17,780 )    (18,854 )           (75,001 )    (75,041 )
expense(1)

Investment        284          277                 1,205        1,073
income

Gain (loss) on
extinguishment    (1,595  )    2,866               5,336        (5,583  )
of debt(1)

Gain from
non-disposal      11           -                   73           17
activities

                  (19,080 )    (15,711 )           (68,387 )    (79,534 )

Income from
continuing        5,501        4,616               26,021       7,889
operations

Discontinued
operations:

Income from
operations of     275          712                 1,579        4,129
properties
held for sale

Gain on sale      1,527        -                   13,348       15,275
of real estate

Net income        7,303        5,328               40,948       27,293

Less: Net
income
attributable
to                (49     )    (53     )           (203    )    (211    )
noncontrolling
interests in
subsidiaries

Net income
attributable
to the          $ 7,254      $ 5,275             $ 40,745     $ 27,082
controlling
interests

Income from
continuing
operations
attributable    $ 5,452      $ 4,563             $ 25,818     $ 7,678
to the
controlling
interests

Gain from
non-disposal      (11     )    -                   (73     )    (17     )
activities

Continuing
operations
real estate       23,947       23,446              94,042       85,659
depreciation
and
amortization

Funds from
continuing      $ 29,388     $ 28,009            $ 119,787    $ 93,320
operations

Income from
discontinued
operations        275          712                 1,579        4,129
before gain on
sale

Discontinued
operations
real estate       1            184                 405          1,239
depreciation
and
amortization

Funds from
discontinued      276          896                 1,984        5,368
operations

Funds from      $ 29,664     $ 28,905            $ 121,771    $ 98,688
operations(2)

Non-cash
(gain) loss on    595          (2,866  )           (6,336  )    (2,866  )
extinguishment
of debt

Tenant            (4,425  )    (2,759  )           (12,490 )    (11,350 )
improvements

External and
internal
leasing           (1,058  )    (1,184  )           (5,845  )    (6,487  )
commissions
capitalized

Recurring
capital           (1,442  )    (2,688  )           (6,356  )    (9,792  )
improvements

Straight-line     (1,527  )    (517    )           (3,379  )    (2,752  )
rents, net

Non-cash fair
value interest    773          266                 3,595        3,441
expense

Non real
estate
depreciation &    1,037        1,261               4,555        5,039
amortization
of debt costs

Amortization
of lease          (777    )    (47     )           (2,587  )    (1,623  )
intangibles,
net

Amortization
and expensing
of restricted     820          417                 3,460        2,538
share and unit
compensation

Funds
available for   $ 23,660     $ 20,788            $ 96,388     $ 74,836
distribution
(6)

Note: Certain prior period amounts have been reclassified to conform to the
current presentation.




                            Three Months Ended December  Twelve Months Ended
                            31,                          December 31,

Per share data
attributable to             2009      2008               2009      2008
the controlling
interests:

Income from
continuing      (Basic)     $ 0.09    $ 0.09             $ 0.45    $ 0.15
operations

                (Diluted)   $ 0.09    $ 0.09             $ 0.45    $ 0.15

Net income      (Basic)     $ 0.12    $ 0.10             $ 0.71    $ 0.55

                (Diluted)   $ 0.12    $ 0.10             $ 0.71    $ 0.55

Funds from
continuing      (Basic)     $ 0.49    $ 0.53             $ 2.10    $ 1.90
operations

                (Diluted)   $ 0.49    $ 0.53             $ 2.10    $ 1.89

Funds from      (Basic)     $ 0.50    $ 0.55             $ 2.14    $ 2.01
operations

                (Diluted)   $ 0.50    $ 0.55             $ 2.14    $ 2.00

Dividends paid              $ 0.4325  $ 0.4325           $ 1.7300  $ 1.7200

Weighted
average shares                59,735    52,358             56,894    49,138
outstanding

Fully diluted
weighted                      59,833    52,387             56,968    49,217
average shares
outstanding




WASHINGTON REAL ESTATE INVESTMENT TRUST

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

                                                    December 31,   December 31,

                                                    2009           2008

Assets

Land                                                $ 412,137      $ 410,833

Income producing property                             1,899,378      1,854,008

                                                      2,311,515      2,264,841

Accumulated depreciation and amortization             (474,171  )    (394,902  )

Net income producing property                         1,837,344      1,869,939

Development in progress                               25,031         23,732

Total real estate held for investment, net            1,862,375      1,893,671

Investment in real estate sold or held for sale       3,841          26,734

Cash and cash equivalents                             11,203         11,874

Restricted cash                                       19,170         18,823

Rents and other receivables, net of allowance for
doubtful accounts of $6,455 and $6,122,               50,525         44,675
respectively

Prepaid expenses and other assets(1)                  97,815         112,284

Other assets related to property sold or held for     296            1,346
sale

Total assets                                        $ 2,045,225    $ 2,109,407

Liabilities

Notes payable(1)                                    $ 688,912      $ 890,679

Mortgage notes payable                                405,451        421,286

Lines of credit                                       128,000        67,000

Accounts payable and other liabilities                52,649         70,538

Advance rents                                         11,211         8,926

Tenant security deposits                              9,854          10,084

Other liabilities related to property sold or held    85             469
for sale

Total liabilities                                   $ 1,296,162    $ 1,468,982

Shareholders' equity

Shares of beneficial interest, $0.01 par value;
100,000

Shares authorized;59,811 and 52,434

shares issued and outstanding, respectively           599            526

Additional paid-in capital(1)                         944,825        777,375

Distributions in excess of net income                 (198,412  )    (138,936  )

Accumulated other comprehensive income                (1,757    )    (2,335    )

Total shareholders' equity                            745,255        636,630

Noncontrolling interests in subsidiaries              3,808          3,795

Total equity                                          749,063        640,425

Total liabilities and equity                        $ 2,045,225    $ 2,109,407

Note: Certain prior year amounts have been reclassified to conform to the
current year presentation.





The following tables contain reconciliations of net income to core net operating
income for the periods presented:

Three months                           Medical
ended December  Multifamily  Office               Retail   Industrial  Total
31, 2009                               Office

Core net
operating       $ 5,877      $ 19,352  $ 7,492    $ 8,101  $ 6,507     $ 47,329
income(4)

Add: Net
operating
income from       1,042        3,418     (87   )    -        -           4,373
non-core
properties(4)

Total net
operating       $ 6,919      $ 22,770  $ 7,405    $ 8,101  $ 6,507     $ 51,702
income(3)

Add/(deduct):

Other income                                                             284

Gain from
non-disposal                                                             11
activities

Interest                                                                 (17,780 )
expense

Gain (loss) on
extinguishment                                                           (1,595  )
of debt

Depreciation
and                                                                      (23,947 )
amortization

General and
administrative                                                           (3,174  )
expenses

Income from
operations of                                                            275
properties
held for sale

Gain on sale                                                             1,527
of real estate

Net income                                                               7,303

Less: Net
income
attributable
to                                                                       (49     )
noncontrolling
interests in
subsidiaries

Net income
attributable
to the                                                                 $ 7,254
controlling
interests

Three months                           Medical
ended December  Multifamily  Office               Retail   Industrial  Total
31, 2008                               Office

Core net
operating       $ 5,832      $ 18,147  $ 7,339    $ 6,965  $ 6,862     $ 45,145
income(4)

Add: Net
operating
income from       322          1,603     -          -        -           1,925
non-core
properties(4)

Total net
operating       $ 6,154      $ 19,750  $ 7,339    $ 6,965  $ 6,862     $ 47,070
income(3)

Add/(deduct):

Other income                                                             277

Interest                                                                 (18,854 )
expense

Gain (loss) on
extinguishment                                                           2,866
of debt

Depreciation
and                                                                      (23,446 )
amortization

General and
administrative                                                           (3,297  )
expenses

Income from
operations of                                                            712
properties
held for sale

Net income                                                               5,328

Less: Net
income
attributable
to                                                                       (53     )
noncontrolling
interests in
subsidiaries

Net income
attributable
to the                                                                 $ 5,275
controlling
interests





The following tables contain reconciliations of net income to core net operating
income for the periods presented:

Twelve months                          Medical
ended December  Multifamily  Office              Retail    Industrial  Total
31, 2009                               Office

Core net
operating       $ 19,527     $ 73,482  $ 29,577  $ 31,141  $ 25,881    $ 179,608
income(4)

Add: Net
operating
income from       7,449        14,077    116       -         1,106       22,748
non-core
properties(4)

Total net
operating       $ 26,976     $ 87,559  $ 29,693  $ 31,141  $ 26,987    $ 202,356
income(3)

Add/(deduct):

Other income                                                             1,205

Gain from
non-disposal                                                             73
activities

Interest                                                                 (75,001 )
expense

Gain (loss) on
extinguishment                                                           5,336
of debt

Depreciation
and                                                                      (94,042 )
amortization

General and
administrative                                                           (13,906 )
expenses

Income from
operations of                                                            1,579
properties
held for sale

Gain on sale                                                             13,348
of real estate

Net income                                                               40,948

Less: Net
income
attributable
to                                                                       (203    )
noncontrolling
interests in
subsidiaries

Net income
attributable
to the                                                                 $ 40,745
controlling
interests

Twelve months                          Medical
ended December  Multifamily  Office              Retail    Industrial  Total
31, 2008                               Office

Core net
operating       $ 18,884     $ 74,729  $ 29,286  $ 31,340  $ 27,327    $ 181,566
income(4)

Add: Net
operating
income from       1,538        1,137     131       -         820         3,626
non-core
properties(4)

Total net
operating       $ 20,422     $ 75,866  $ 29,417  $ 31,340  $ 28,147    $ 185,192
income(3)

Add/(deduct):

Other income                                                             1,073

Gain from
non-disposal                                                             17
activities

Interest                                                                 (75,041 )
expense

Gain (loss) on
extinguishment                                                           (5,583  )
of debt

Depreciation
and                                                                      (85,659 )
amortization

General and
administrative                                                           (12,110 )
expenses

Income from
operations of                                                            4,129
properties
held for sale

Gain on sale                                                             15,275
of real estate

Net income                                                               27,293

Less: Net
income
attributable
to                                                                       (211    )
noncontrolling
interests in
subsidiaries

Net income
attributable
to the                                                                 $ 27,082
controlling
interests




    Source: Washington Real Estate Investment Trust (WRIT)