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Supplemental Financial and Operating Data

Table of Contents
June 30, 2020
SchedulePage
Key Financial Data
Capital Analysis
Portfolio Analysis
Growth and Strategy
Acquisition and Disposition Summary
Tenant Analysis
Appendix




Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Six Months EndedThree Months Ended
OPERATING RESULTSJune 30, 2020June 30, 2019June 30, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Real estate rental revenue$149,662  $148,254  $72,870  $76,792  $80,667  $80,259  $76,820  
Real estate expenses(55,524) (54,277) (26,885) (28,639) (30,611) (30,692) (28,134) 
94,138  93,977  45,985  48,153  50,056  49,567  48,686  
Real estate depreciation and amortization(59,319) (60,101) (29,599) (29,720) (38,812) (37,340) (33,044) 
Income from real estate34,819  33,876  16,386  18,433  11,244  12,227  15,642  
Interest expense(19,596) (27,748) (8,751) (10,845) (11,788) (14,198) (15,252) 
(Loss) gain on sale of real estate(7,539) (1,046) (7,539) —  61,007  —  (1,046) 
Gain (loss) on extinguishment of debt262  —  (206) 468  —  —  —  
Real estate impairment—  (8,374) —  —  —  —  —  
General and administrative expenses(11,633) (13,342) (5,296) (6,337) (6,265) (6,461) (5,535) 
(Loss) income from continuing operations(3,687) (16,634) (5,406) 1,719  54,198  (8,432) (6,191) 
Discontinued operations:
Income from properties classified as discontinued operations—  13,216  —  —  —  2,942  7,178  
Gain on sale of real estate—  —  —  —  —  339,024  —  
Loss on extinguishment of debt—  —  —  —  —  (764) —  
Income from discontinued operations—  13,216  —  —  —  341,202  7,178  
Net (loss) income(3,687) (3,418) (5,406) 1,719  54,198  332,770  987  
Less: Net income attributable to noncontrolling interests in subsidiaries—  —  —  —  —  —  —  
Net (loss) income attributable to the controlling interests$(3,687) $(3,418) $(5,406) $1,719  $54,198  $332,770  $987  
Per Share Data:
Net (loss) income attributable to the controlling interests$(0.05) $(0.05) $(0.07) $0.02  $0.66  $4.14  $0.01  
Fully diluted weighted average shares outstanding82,120  79,908  82,153  82,287  81,313  79,981  79,934  
Percentage of Revenues:
Real estate expenses37.1 %36.6 %36.9 %37.3 %37.9 %38.2 %36.6 %
General and administrative expenses7.8 %9.0 %7.3 %8.3 %7.8 %8.1 %7.2 %
Ratios:
Adjusted EBITDA / Interest expense (includes discontinued operations)4.2 x3.6 x4.7 x3.9 x3.8 x3.3 x3.5 x
Net (loss) income attributable to the controlling interests / Real estate rental revenue(2.5)%(2.3)%(7.4)%2.2 %67.2 %414.6 %1.3 %
4



Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
June 30, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Assets
Land$574,025  $574,025  $566,807  $611,797  $597,258  
Income producing property2,467,629  2,444,525  2,392,415  2,486,966  2,407,898  
3,041,654  3,018,550  2,959,222  3,098,763  3,005,156  
Accumulated depreciation and amortization(745,692) (719,446) (693,610) (724,433) (697,714) 
Net income producing property2,295,962  2,299,104  2,265,612  2,374,330  2,307,442  
Properties under development or held for future development89,166  89,791  124,193  110,572  107,969  
Total real estate held for investment, net2,385,128  2,388,895  2,389,805  2,484,902  2,415,411  
Investment in real estate held for sale, net—  57,028  57,028  —  199,865  
Cash and cash equivalents7,971  20,601  12,939  12,931  5,756  
Restricted cash630  634  1,812  1,578  1,650  
Rents and other receivables67,026  64,617  65,259  69,414  65,739  
Prepaid expenses and other assets81,967  84,722  95,149  106,251  113,434  
Other assets related to properties sold or held for sale—  6,123  6,336  —  16,242  
Total assets$2,542,722  $2,622,620  $2,628,328  $2,675,076  $2,818,097  
Liabilities
Notes payable, net$897,060  $997,075  $996,722  $996,455  $1,445,444  
Mortgage notes payable, net—  —  47,074  47,319  47,563  
Line of credit181,000  148,000  56,000  211,000  218,000  
Accounts payable and other liabilities93,192  98,966  71,136  75,735  62,603  
Dividend payable24,760  —  24,668  —  —  
Advance rents7,375  8,681  9,353  9,475  8,801  
Tenant security deposits10,769  10,875  10,595  10,849  10,588  
Other liabilities related to properties sold or held for sale—  875  718  —  14,390  
Total liabilities1,214,156  1,264,472  1,216,266  1,350,833  1,807,389  
Equity
Preferred shares; $0.01 par value; 10,000 shares authorized—  —  —  —  —  
Shares of beneficial interest, $0.01 par value; 100,000 shares authorized823  823  821  803  801  
Additional paid-in capital1,598,620  1,596,242  1,592,487  1,539,734  1,532,497  
Distributions in excess of net income(236,673) (206,506) (183,405) (212,978) (521,661) 
Accumulated other comprehensive (loss) income (34,533) (32,744) 1,823  (3,659) (1,272) 
Total shareholders' equity1,328,237  1,357,815  1,411,726  1,323,900  1,010,365  
Noncontrolling interests in subsidiaries329  333  336  343  343  
Total equity1,328,566  1,358,148  1,412,062  1,324,243  1,010,708  
Total liabilities and equity$2,542,722  $2,622,620  $2,628,328  $2,675,076  $2,818,097  
5



Funds from Operations
(In thousands, except per share data)
(Unaudited)

Six Months EndedThree Months Ended
June 30, 2020June 30, 2019June 30, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Funds from operations (FFO) (1)
Net (loss) income$(3,687) $(3,418) $(5,406) $1,719  $54,198  $332,770  $987  
Real estate depreciation and amortization59,319  60,101  29,599  29,720  38,812  37,340  33,044  
Loss (gain) on sale of depreciable real estate7,539  1,046  7,539  —  (61,007) —  1,046  
Real estate impairment—  8,374  —  —  —  —  —  
Discontinued operations:
Gain on sale of depreciable real estate—  —  —  —  —  (339,024) —  
Real estate depreciation and amortization—  4,867  —  —  —  59  2,377  
NAREIT funds from operations (FFO)63,171  70,970  31,732  31,439  32,003  31,145  37,454  
(Gain) loss on extinguishment of debt(262) —  206  (468) —  764  —  
Restructuring expenses (2)
—  2,096  —  —  270  653  200  
Core FFO (1)
$62,909  $73,066  $31,938  $30,971  $32,273  $32,562  $37,654  
Allocation to participating securities (3)
(302) (267) (151) (151) (81) (129) (133) 
NAREIT FFO per share - basic$0.77  $0.88  $0.38  $0.38  $0.39  $0.39  $0.47  
NAREIT FFO per share - fully diluted$0.76  $0.88  $0.38  $0.38  $0.39  $0.39  $0.47  
Core FFO per share - fully diluted$0.76  $0.91  $0.39  $0.37  $0.40  $0.41  $0.47  
Common dividend per share$0.60  $0.60  $0.30  $0.30  $0.30  $0.30  $0.30  
Average shares - basic82,120  79,908  82,153  82,086  81,220  79,981  79,934  
Average shares - fully diluted (for NAREIT FFO and Core FFO)82,305  79,989  82,323  82,287  81,313  80,040  79,998  
______________________________
(1) See "Supplemental Definitions" on page 35 of this supplemental for the definitions of NAREIT FFO and Core FFO.
(2) Restructuring expenses include severance, accelerated share-based compensation and other expenses related to a restructuring of WashREIT personnel.
(3) Adjustment to the numerators for FFO and Core FFO per share calculations when applying the two-class method for calculating EPS.
6



Funds Available for Distribution
(In thousands, except per share data)
(Unaudited)

Six Months EndedThree Months Ended
June 30, 2020June 30, 2019June 30, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Funds available for distribution (FAD) (1)
NAREIT FFO$63,171  $70,970  $31,732  $31,439  $32,003  $31,145  $37,454  
Non-cash (gain) loss on extinguishment of debt(1,177) —  204  (1,381) —  (244) —  
Tenant improvements and incentives(2,949) (5,845) (1,877) (1,072) (6,857) (3,196) (3,576) 
External and internal leasing commissions capitalized(1,326) (2,428) (797) (529) (2,700) (1,243) (1,925) 
Recurring capital improvements(1,812) (1,367) (824) (988) (4,345) (1,034) (1,049) 
Straight-line rent, net(1,318) (1,790) (655) (663) (763) (713) (966) 
Non-cash fair value interest expense(59) (421) —  (59) (178) (179) (209) 
Non-real estate depreciation and amortization of debt costs1,852  2,321  910  942  1,030  1,654  1,320  
Amortization of lease intangibles, net1,001  1,151  544  457  504  528  573  
Amortization and expensing of restricted share and unit compensation3,422  4,527  1,644  1,778  1,479  1,737  1,701  
FAD60,805  67,118  30,881  29,924  20,173  28,455  33,323  
Cash loss on extinguishment of debt915  —   913  —  1,008  —  
Restructuring expenses (excluding accelerated share-based compensation)—  1,116  —  —  270  436  201  
Core FAD (1)
$61,720  $68,234  $30,883  $30,837  $20,443  $29,899  $33,524  
______________________________
(1) See "Supplemental Definitions" on page 35 of this supplemental for the definitions of FAD and Core FAD.

7



Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
(In thousands)
(Unaudited)
Six Months EndedThree Months Ended
June 30, 2020June 30, 2019June 30, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Adjusted EBITDA (1)
Net (loss) income$(3,687) $(3,418) $(5,406) $1,719  $54,198  $332,770  $987  
Add:
Interest expense19,596  28,031  8,751  10,845  11,788  14,228  15,390  
Real estate depreciation and amortization59,319  64,968  29,599  29,720  38,812  37,399  35,421  
Casualty gain
Real estate impairment—  8,374  —  —  —  —  —  
Non-real estate depreciation479  493  241  238  276  250  244  
Restructuring expenses—  2,096  —  —  270  653  200  
Less:
Loss (gain) on sale of depreciable real estate7,539  1,046  7,539  —  (61,007) (339,024) 1,046  
(Gain) loss on extinguishment of debt(262) —  206  (468) —  764  —  
Adjusted EBITDA $82,984  $101,590  $40,930  $42,054  $44,337  $47,040  $53,288  
______________________________
(1) Adjusted EBITDA is earnings before interest expense, taxes, depreciation, amortization, gain/loss on sale of real estate, casualty gain/loss, real estate impairment, gain/loss on extinguishment of debt, restructuring expenses (which include severance, accelerated share-based compensation and other expenses related to a restructuring of corporate personnel), acquisition expenses and gain from non-disposal activities. We consider Adjusted EBITDA to be an appropriate supplemental performance measure because it permits investors to view income from operations without the effect of depreciation, and the cost of debt or non-operating gains and losses. Adjusted EBITDA is a non-GAAP measure.

8



Long Term Debt Analysis
($'s in thousands)
June 30, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Balances Outstanding
Secured
Mortgage note payable, net (1)
$—  $—  $47,074  $47,319  $58,039  
Unsecured
Fixed rate bonds348,375  598,028  597,781  597,618  597,371  
Term loans 548,685  399,047  398,941  398,837  848,073  
Credit facility181,000  148,000  56,000  211,000  218,000  
Unsecured total1,078,060  1,145,075  1,052,722  1,207,455  1,663,444  
Total$1,078,060  $1,145,075  $1,099,796  $1,254,774  $1,721,483  
Weighted Average Interest Rates
Secured
Mortgage note payable, net (1)
— %— %3.8 %3.8 %4.0 %
Unsecured
Fixed rate bonds4.5 %4.7 %4.7 %4.7 %4.7 %
Term loans (2)
2.6 %2.8 %2.8 %2.8 %3.1 %
Credit facility1.2 %1.8 %2.7 %3.1 %3.4 %
Unsecured total3.0 %3.7 %3.9 %3.8 %3.8 %
Weighted Average3.0 %3.7 %3.9 %3.8 %3.7 %
______________________________
(1) In January 2020, WashREIT prepaid the existing mortgage note associated with Yale West, resulting in a gain on extinguishment of debt of $0.5 million.
(2) WashREIT has entered into interest rate swaps to effectively fix the floating interest rates on $400.0 million of its total $550.0 million aggregate principal of its term loans outstanding as of June 30, 2020 (see page 10 of this Supplemental).
Note: The current debt balances outstanding are shown net of discounts, premiums and unamortized debt costs (see page 10 of this Supplemental).


9


Long Term Debt Maturities
(in thousands, except average interest rates)
June 30, 2020
chart-9361974cf19b41e81.jpg
Future Maturities of Debt
YearUnsecured DebtCredit FacilityTotal DebtAvg Interest Rate
2020$—  $—  $—  —%
2021150,000  
(1)
—  150,000  2.7%
2022450,000  
(2)
—  450,000  3.3%
2023250,000  
(3)
181,000  
(4)
431,000  2.2%
2024—  —  —  —%
2025—  —  —  —%
Thereafter50,000  —  50,000  7.3%
Scheduled principal payments$900,000  $181,000  $1,081,000  3.0%
Net discounts/premiums(551) —  (551) 
Loan costs, net of amortization(2,389) —  (2,389) 
Total maturities$897,060  $181,000  $1,078,060  3.0%
Weighted average maturity = 2.4 years
______________________________
(1)  WashREIT entered into interest rate swaps to effectively fix a LIBOR plus 110 basis points floating interest rate to a 2.72% all-in fixed interest rate through the term loan maturity of March 2021.
(2) Maturity date for a $150.0 million term loan of May 2022 assumes election of extension option for an additional one-year period.
(3) WashREIT entered into interest rate swaps to effectively fix a LIBOR plus 110 basis points floating interest rate to a 2.31% all-in fixed interest rate for $150.0 million portion of the term loan. For the remaining $100.0 million portion of the term loan, WashREIT entered into interest rate swaps to effectively fix a LIBOR plus 100 basis points floating interest rate to a 3.71% all-in fixed interest rate. The interest rates are fixed through the term loan maturity of July 2023. The 2018 Term Loan has an all-in fixed interest rate of 2.87%.
(4) Maturity date for credit facility of March 2023 assumes election of extension option for two additional 6-month periods.
10



Debt Covenant Compliance
Unsecured Notes PayableUnsecured Line of Credit
and Term Loans
Quarter Ended June 30, 2020CovenantQuarter Ended June 30, 2020Covenant
% of Total Indebtedness to Total Assets(1)
37.6 %≤ 65.0% N/AN/A
Ratio of Income Available for Debt Service to Annual Debt Service3.5              ≥ 1.5 N/AN/A
% of Secured Indebtedness to Total Assets(1)
— %≤ 40.0% N/AN/A
Ratio of Total Unencumbered Assets(2) to Total Unsecured Indebtedness
2.7              ≥ 1.5 N/AN/A
% of Net Consolidated Total Indebtedness to Consolidated Total Asset Value(3)
 N/A N/A32.5 %≤ 60.0%
Ratio of Consolidated Adjusted EBITDA(4) to Consolidated Fixed Charges(5)
 N/A N/A4.69               ≥ 1.50
% of Consolidated Secured Indebtedness to Consolidated Total Asset Value(3)
 N/A N/A— %≤ 40.0%
% of Consolidated Unsecured Indebtedness to Unencumbered Pool Value(6)
 N/A N/A32.6 %≤ 60.0%
Ratio of Unencumbered Adjusted Net Operating Income to Consolidated Unsecured Interest Expense N/A N/A5.28               ≥ 1.75
______________________________
(1) Total Assets is calculated by applying a capitalization rate of 7.50% to the EBITDA(4) from the last four consecutive quarters, excluding EBITDA from acquired, disposed, and non-stabilized development properties.
(2) Total Unencumbered Assets is calculated by applying a capitalization rate of 7.50% to the EBITDA(4) from unencumbered properties from the last four consecutive quarters, excluding EBITDA from acquired, disposed, and non-stabilized development properties.
(3) Consolidated Total Asset Value is the sum of unrestricted cash plus the quotient of applying a capitalization rate to the annualized NOI from the most recently ended quarter for each asset class, excluding NOI from disposed properties, acquisitions during the past 6 quarters, development, major redevelopment and low occupancy properties. To this amount, we add the purchase price of acquisitions during the past 6 quarters plus values for development, major redevelopment and low occupancy properties.
(4) Consolidated Adjusted EBITDA is defined as earnings before noncontrolling interests, depreciation, amortization, interest expense, income tax expense, acquisition costs, extraordinary, unusual or nonrecurring transactions including sale of assets, impairment, gains and losses on extinguishment of debt and other non-cash charges.
(5) Consolidated Fixed Charges consist of interest expense excluding capitalized interest and amortization of deferred financing costs, principal payments and preferred dividends, if any.
(6) Unencumbered Pool Value is the sum of unrestricted cash plus the quotient of applying a capitalization rate to the annualized NOI from unencumbered properties from the most recently ended quarter for each asset class excluding NOI from disposed properties, acquisitions during the past 6 quarters, development, major redevelopment and low occupancy properties. To this we add the purchase price of unencumbered acquisitions during the past 6 quarters and values for unencumbered development, major redevelopment and low occupancy properties.
11



Capital Analysis
(In thousands, except per share amounts)
Three Months Ended
June 30, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Market Data
Shares Outstanding82,327  82,315  82,099  80,292  80,082  
Market Price per Share$22.20  $23.87  $29.18  $27.36  $26.73  
Equity Market Capitalization$1,827,659  $1,964,859  $2,395,649  $2,196,789  $2,140,592  
Total Debt$1,078,060  $1,145,075  $1,099,796  $1,254,774  $1,721,483  
Total Market Capitalization$2,905,719  $3,109,934  $3,495,445  $3,451,563  $3,862,075  
Total Debt to Market Capitalization0.37 :10.37 :10.31 :10.36 :10.45 :1
Earnings to Fixed Charges(1)
0.4x1.1x5.2x0.4x0.6x
Debt Service Coverage Ratio(2)
4.7x3.9x3.7x3.2x3.3x
Dividend DataSix Months EndedThree Months Ended
June 30, 2020June 30, 2019June 30, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Total Dividends Declared$49,581  $48,252  $24,761  $24,820  $24,625  $24,087  $24,111  
Common Dividend Declared per Share$0.60  $0.60  $0.30  $0.30  $0.30  $0.30  $0.30  
Payout Ratio (Core FFO basis)78.9 %65.9 %76.9 %81.1 %75.0 %73.2 %63.8 %
Payout Ratio (Core FAD basis)80.0 %70.6 %
______________________________
(1) The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For this purpose, earnings consist of income from continuing operations attributable to the controlling interests plus fixed charges, less capitalized interest. Fixed charges consist of interest expense, including amortized costs of debt issuance, plus interest costs capitalized. The earnings to fixed charges ratio includes (loss) gain on sale of real estate of ($7.5 million), $61.0 million and ($1.0 million) for the three months ended June 30, 2020, December 31, 2019 and June 30, 2019, respectively.
(2) Debt service coverage ratio is computed by dividing Adjusted EBITDA (see page 8) by interest expense and principal amortization.
12



Same-Store Portfolio Net Operating Income (NOI) Growth
2020 vs. 2019
Six Months Ended June 30,Three Months Ended June 30,
20202019% Change20202019% Change
Cash Basis:
Multifamily$31,256  $30,127  3.7 %$15,373  $15,258  0.8 %
Office42,082  44,274  (5.0)%21,071  21,889  (3.7)%
Other (2)
5,688  6,523  (12.8)%2,573  3,305  (22.1)%
Overall Same-Store Portfolio (1)
$79,026  $80,924  (2.3)%$39,017  $40,452  (3.5)%
GAAP Basis:
Multifamily$31,244  $30,120  3.7 %$15,367  $15,255  0.7 %
Office42,418  44,999  (5.7)%21,171  22,243  (4.8)%
Other (2)
5,867  6,886  (14.8)%2,660  3,529  (24.6)%
Overall Same-Store Portfolio (1)
$79,529  $82,005  (3.0)%$39,198  $41,027  (4.5)%
______________________________
(1) Non same-store properties were:
Acquisitions:
                  Multifamily - Assembly Alexandria, Assembly Manassas, Assembly Dulles, Assembly Leesburg, Assembly Herndon, Assembly Germantown, Assembly Watkins Mill and Cascade at Landmark
Development:
                  Multifamily - The Trove
          Sold properties:
                  Office - Quantico Corporate Center, 1776 G Street and John Marshall II
          Discontinued operations:
                  Retail - Wheaton Park, Bradlee Shopping Center, Shoppes at Foxchase, Gateway Overlook, Olney Village Center, Frederick County Square, Centre at Hagerstown and Frederick Crossing
(2) Consists of retail centers not classified as discontinued operations: Takoma Park, Westminster, Concord Centre, Chevy Chase Metro Plaza, 800 S. Washington Street, Randolph Shopping Center, Montrose Shopping Center and Spring Valley Village.
13



Same-Store Portfolio Net Operating Income (NOI) Detail
(In thousands)
Three Months Ended June 30, 2020
MultifamilyOffice
Corporate and Other (1)
Total
Real estate rental revenue
Same-store portfolio$24,548  $32,532  $3,918  $60,998  
Non same-store (1)
11,490  382  —  11,872  
Total36,038  32,914  3,918  72,870  
Real estate expenses
Same-store portfolio9,181  11,361  1,258  21,800  
Non same-store (1)
4,929  156  —  5,085  
Total14,110  11,517  1,258  26,885  
Net Operating Income (NOI)
Same-store portfolio15,367  21,171  2,660  39,198  
Non same-store (1)
6,561  226  —  6,787  
Total$21,928  $21,397  $2,660  $45,985  
Same-store portfolio NOI (from above)$15,367  $21,171  $2,660  $39,198  
Straight-line revenue, net for same-store properties (673) 22  (646) 
Amortization of acquired lease assets (liabilities) for same-store properties 42  (126) (83) 
Amortization of lease intangibles for same-store properties—  531  17  548  
Same-store portfolio cash NOI$15,373  $21,071  $2,573  $39,017  
Reconciliation of NOI to net income
Total NOI$21,928  $21,397  $2,660  $45,985  
Depreciation and amortization(14,058) (14,176) (1,365) (29,599) 
General and administrative expenses—  —  (5,296) (5,296) 
Interest expense—  —  (8,751) (8,751) 
Loss on sale of real estate—  —  (7,539) (7,539) 
Loss on extinguishment of debt—  —  (206) (206) 
Net income (loss)7,870  7,221  (20,497) (5,406) 
Net income attributable to noncontrolling interests—  —  —  —  
Net income (loss) attributable to the controlling interests$7,870  $7,221  $(20,497) $(5,406) 
______________________________
(1) For a list of non-same-store and other properties, see page 13 of this Supplemental.
14



Same-Store Portfolio Net Operating Income (NOI) Detail
(In thousands)
Three Months Ended March 31, 2020
MultifamilyOffice
Corporate and Other (1)
Total
Real estate rental revenue
Same-store portfolio$25,104  $33,881  $4,544  $63,529  
Non same-store (1)
11,474  1,789  —  13,263  
                         Total36,578  35,670  4,544  76,792  
Real estate expenses
Same-store portfolio9,227  12,634  1,337  23,198  
Non same-store (1)
4,758  683  —  5,441  
                         Total13,985  13,317  1,337  28,639  
Net Operating Income (NOI)
Same-store portfolio15,877  21,247  3,207  40,331  
Non same-store (1)
6,716  1,106  —  7,822  
                          Total$22,593  $22,353  $3,207  $48,153  
Same-store portfolio NOI (from above)$15,877  $21,247  $3,207  $40,331  
Straight-line revenue, net for same-store properties (654) 18  (631) 
Amortization of acquired lease assets (liabilities) for same-store properties (30) (127) (156) 
Amortization of lease intangibles for same-store properties—  448  17  465  
Same-store portfolio cash NOI$15,883  $21,011  $3,115  $40,009  
Reconciliation of NOI to net income
Total NOI$22,593  $22,353  $3,207  $48,153  
Depreciation and amortization(13,961) (14,354) (1,405) (29,720) 
General and administrative expenses—  —  (6,337) (6,337) 
Interest expense(172) —  (10,673) (10,845) 
     Gain on extinguishment of debt—  —  468  468  
Net income (loss)8,460  7,999  (14,740) 1,719  
Net income attributable to noncontrolling interests—  —  —  —  
Net income (loss) attributable to controlling interests$8,460  $7,999  $(14,740) $1,719  
______________________________
(1) For a list of non-same-store, discontinued operations and other properties, see page 13 of this Supplemental.

15



Same-Store Portfolio Net Operating Income (NOI) Detail
(In thousands)
Three Months Ended June 30, 2019
MultifamilyOffice
Corporate and Other (1)
Total
Real estate rental revenue
Same-store portfolio$24,434  $35,239  $4,872  $64,545  
Non same-store (1)
5,453  6,822  —  12,275  
                         Total29,887  42,061  4,872  76,820  
Real estate expenses
Same-store portfolio9,179  12,996  1,343  23,518  
Non same-store (1)
2,047  2,569  —  4,616  
                         Total11,226  15,565  1,343  28,134  
Net Operating Income (NOI)
Same-store portfolio15,255  22,243  3,529  41,027  
Non same-store (1)
3,406  4,253  —  7,659  
                          Total$18,661  $26,496  $3,529  $48,686  
Same-store portfolio NOI (from above)$15,255  $22,243  $3,529  $41,027  
Straight-line revenue, net for same-store properties (826) (111) (935) 
Amortization of acquired lease assets (liabilities) for same-store properties (98) (126) (223) 
Amortization of lease intangibles for same-store properties—  570  13  583  
Same-store portfolio cash NOI$15,258  $21,889  $3,305  $40,452  
Reconciliation of NOI to net income
Total NOI$18,661  $26,496  $3,529  $48,686  
Depreciation and amortization (2)
(15,208) (16,413) (1,423) (33,044) 
General and administrative expenses—  —  (5,535) (5,535) 
Interest expense(519) —  (14,733) (15,252) 
Loss on sale of real estate—  —  (1,046) (1,046) 
Income (loss) from continuing operations2,934  10,083  (19,208) (6,191) 
Discontinued operations:
Income from operations of properties classified as discontinued operations (1)
—  —  7,178  7,178  
Net income (loss)2,934  10,083  (12,030) 987  
Net income attributable to noncontrolling interests—  —  —  —  
Net income (loss) attributable to the controlling interests$2,934  $10,083  $(12,030) $987  
______________________________
(1) For a list of non-same-store, discontinued operations and other properties, see page 13 of this Supplemental.
(2) Depreciation and amortization includes $4.2 million amortization of intangible lease assets at the Assembly Portfolio, which have a weighted average useful life of seven months.
16



Same-Store Portfolio Net Operating Income (NOI) Detail 
(In thousands)
Six Months Ended June 30, 2020
MultifamilyOffice
Corporate and Other (1)
Total
Real estate rental revenue
Same-store portfolio$49,652  $66,413  $8,462  $124,527  
Non same-store (1)
22,964  2,171  —  25,135  
Total72,616  68,584  8,462  149,662  
Real estate expenses
Same-store portfolio18,408  23,995  2,595  44,998  
Non same-store (1)
9,687  839  —  10,526  
Total28,095  24,834  2,595  55,524  
Net Operating Income (NOI)
Same-store portfolio31,244  42,418  5,867  79,529  
Non same-store (1)
13,277  1,332  —  14,609  
Total$44,521  $43,750  $5,867  $94,138  
Same-store portfolio NOI (from above)$31,244  $42,418  $5,867  $79,529  
Straight-line revenue, net for same-store properties10  (1,327) 40  (1,277) 
Amortization of acquired lease assets (liabilities) for same-store properties 12  (253) (239) 
Amortization of lease intangibles for same-store properties—  979  34  1,013  
Same-store portfolio cash NOI$31,256  $42,082  $5,688  $79,026  
Reconciliation of NOI to net income
Total NOI$44,521  $43,750  $5,867  $94,138  
Depreciation and amortization(28,019) (28,530) (2,770) (59,319) 
General and administrative—  —  (11,633) (11,633) 
Interest expense(172) —  (19,424) (19,596) 
Loss on sale of real estate—  —  (7,539) (7,539) 
    Gain on extinguishment of debt—  —  262  262  
Net income (loss)16,330  15,220  (35,237) (3,687) 
Net income attributable to noncontrolling interests—  —  —  —  
Net income (loss) attributable to the controlling interests$16,330  $15,220  $(35,237) $(3,687) 
______________________________
(1) For a list of non-same-store, discontinued operations and other properties, see page 13 of this Supplemental.
17



Same-Store Portfolio Net Operating Income (NOI) Detail
(In thousands)
Six Months Ended June 30, 2019
MultifamilyOffice
Corporate and Other (1)
Total
Real estate rental revenue
Same-store portfolio48,769  $70,751  $9,678  $129,198  
Non same-store (1)
5,453  13,603  —  19,056  
Total54,222  84,354  9,678  148,254  
Real estate expenses
Same-store portfolio18,649  25,752  2,792  47,193  
Non same-store (1)
2,047  5,037  —  7,084  
Total20,696  30,789  2,792  54,277  
Net Operating Income (NOI)
Same-store portfolio30,120  44,999  6,886  82,005  
Non same-store (1)
3,406  8,566  —  11,972  
Total$33,526  $53,565  $6,886  $93,977  
Same-store portfolio NOI (from above)$30,120  $44,999  $6,886  $82,005  
Straight-line revenue, net for same-store properties (1,703) (115) (1,813) 
Amortization of acquired lease assets (liabilities) for same-store properties (181) (270) (449) 
Amortization of lease intangibles for same-store properties—  1,159  22  1,181  
Same-store portfolio cash NOI$30,127  $44,274  $6,523  $80,924  
Reconciliation of NOI to net income
Total NOI$33,526  $53,565  $6,886  $93,977  
Depreciation and amortization (2)
(23,562) (33,678) (2,861) (60,101) 
General and administrative—  —  (13,342) (13,342) 
Interest expense(1,040) —  (26,708) (27,748) 
Loss on sale of real estate—  —  (1,046) (1,046) 
Real estate impairment—  —  (8,374) (8,374) 
Income (loss) from continuing operations8,924  19,887  (45,445) (16,634) 
Income from operations of properties classified as discontinued operations (1)
—  —  13,216  13,216  
Net income (loss)8,924  19,887  (32,229) (3,418) 
Net income attributable to noncontrolling interests—  —  —  —  
Net income (loss) attributable to the controlling interests$8,924  $19,887  $(32,229) $(3,418) 
______________________________
(1) For a list of non-same-store, discontinued operations and other properties, see page 13 of this Supplemental.
(2) Depreciation and amortization includes $4.2 million amortization of intangible lease assets at the Assembly Portfolio, which have a weighted average useful life of seven months.
18



Net Operating Income (NOI) by Region
Percentage of NOI
Q2 2020YTD 2020
DC
Multifamily6.8 %6.8 %
Office22.1 %21.6 %
Other2.1 %2.1 %
31.0 %30.5 %
Maryland
Multifamily3.9 %4.0 %
Other 2.1 %2.5 %
6.0 %6.5 %
Virginia
Multifamily36.9 %36.5 %
Office24.5 %24.9 %
Other1.6 %1.6 %
63.0 %63.0 %
Total Portfolio100.0 %100.0 %

19



Net Operating Income (NOI) - Multifamily
(Dollars In thousands)

Apartment Units as of June 30, 2020Six Months EndedThree Months Ended
June 30, 2020June 30, 2019June 30, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Rental and other property revenues
Same-store (1)
4,268$49,652  $48,769  $24,548  $25,104  $24,923  $24,763  $24,434  
Non same-store
Acquisitions (2)
2,39022,713  5,453  11,276  11,437  11,174  11,014  5,453  
Development (3)
401  251  —  214  37  22  13  —  
Total rental and other property revenues7,05972,616  54,222  36,038  36,578  36,119  35,790  29,887  
Property operating expenses
Same-store18,408  18,649  9,181  9,227  9,438  9,730  9,179  
Non same-store
Acquisitions9,136  2,047  4,625  4,511  4,717  4,477  2,047  
Development551  —  304  247  52  25  —  
Total property operating expenses28,095  20,696  14,110  13,985  14,207  14,232  11,226  
Net Operating Income (NOI)
Same-store31,244  30,120  15,367  15,877  15,485  15,033  15,255  
Non same-store
Acquisitions13,577  3,406  6,651  6,926  6,457  6,537  3,406  
Development(300) —  (90) (210) (30) (12) —  
Total NOI$44,521  $33,526  $21,928  $22,593  $21,912  $21,558  $18,661  
Same-store metrics
Retention (4)
57 %54 %59 %55 %55 %56 %54 %
______________________________
(1)  Includes properties that were owned for the entirety of the years being compared, and exclude properties under redevelopment or development and properties acquired, sold or classified as held for sale during the years being compared.

(2)  Includes properties that were acquired within the years being compared. The property is categorized as same-store when it has been ready for its intended use for the entirety of the years being compared.

(3)  Include development properties as those for which we have planned or ongoing major construction activities on existing or acquired land pursuant to an authorized development plan. We consider a property's development activities to be complete when the property is ready for its intended use. The property is categorized as same-store when it has been ready for its intended use for the entirety of the years being compared. As of June 30, 2020, 131 of the 401 units in development were delivered.

(4)  Represents the percentage of Same-store property leases renewed that were set to expire in the period presented.


20



Same-Store Operating Results - Multifamily
(Dollars in thousands, except Average Effective Monthly Rent per Unit)


Rental and Other Property RevenueProperty Operating ExpensesNet Operating IncomeAverage OccupancyAverage Effective Monthly Rent per Unit
Quarter-to-Date ComparisonApt UnitsQ2 2020Q2 2019% ChangeQ2 2020Q2 2019% ChangeQ2 2020Q2 2019% ChangeQ2 2020Q2 2019% ChangeQ2 2020Q2 2019% Change
Total/Weighted Average4,268$24,548  $24,434  0.5 %$9,181  $9,179  — %$15,367  $15,255  0.7 %94.2 %95.4 %(1.3)%$1,831  $1,783  2.7 %


Rental and Other Property RevenueProperty Operating ExpensesNet Operating IncomeAverage OccupancyAverage Effective Monthly Rent per Unit
Sequential ComparisonApt UnitsQ2 2020Q1 2020% ChangeQ2 2020Q1 2020% ChangeQ2 2020Q1 2020% ChangeQ2 2020Q1 2020% ChangeQ2 2020Q1 2020% Change
Total/Weighted Average4,268$24,548  $25,104  (2.2)%$9,181  $9,227  (0.5)%$15,367  $15,877  (3.2)%94.2 %95.6 %(1.5)%$1,831  $1,830  0.1 %


Rental and Other Property RevenueProperty Operating ExpensesNet Operating IncomeAverage OccupancyAverage Effective Monthly Rent per Unit
Year-to-Date ComparisonApt UnitsYTD 2020YTD 2019% ChangeYTD 2020YTD 2019% ChangeYTD 2020YTD 2019% ChangeYTD 2020YTD 2019% ChangeYTD 2020YTD 2019% Change
Total/Weighted Average4,268$49,652  $48,769  1.8 %$18,408  $18,649  (1.3)%$31,244  $30,120  3.7 %94.9 %97.3 %(2.5)%$1,831  $1,776  3.1 %

21



Same-Store Operating Expenses - Multifamily
(In thousands)

Quarter-to-Date ComparisonQ2 2020Q2 2019$ Change% Change% of Q2 2020 Total
Controllable (1)
$4,618  $4,726  $(108) (2.3)%50.3 %
Non-Controllable (2)
4,563  4,453  110  2.5 %49.7 %
Total same-store operating expenses$9,181  $9,179  $ — %100.0 %

Sequential ComparisonQ2 2020Q1 2020$ Change% Change% of Q2 2020 Total
Controllable$4,618  $4,330  $288  6.7 %50.3 %
Non-Controllable4,563  4,897  (334) (6.8)%49.7 %
Total same-store operating expenses$9,181  $9,227  $(46) (0.5)%100.0 %

Year-to-Date ComparisonYTD 2020YTD 2019$ Change% Change% of YTD 2020 Total
Controllable$8,947  $9,136  (189) (2.1)%48.6 %
Non-Controllable9,461  9,513  (52) (0.5)%51.4 %
Total same-store operating expenses$18,408  $18,649  $(241) (1.3)%100.0 %
______________________________
(1) Controllable operating expenses consist of:
Payroll, Repairs & Maintenance, Marketing, Administrative and other
(2) Non-Controllable operating expenses consist of:
Third-party Fees, Utilities, Insurance, and Real Estate Taxes
22



Same-Store Portfolio and Overall Average Occupancy Levels by Sector
Average Occupancy - Same-Store Properties(1) (2)
SectorJune 30, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Multifamily94.2 %95.6 %94.9 %95.0 %95.4 %
Office86.4 %87.2 %88.2 %89.3 %89.7 %
Other (3)
87.2 %91.0 %89.6 %88.9 %88.8 %
Overall Portfolio90.4 %91.7 %91.6 %92.1 %92.6 %
Average Occupancy - All Properties (2)
SectorJune 30, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Multifamily (4)
89.5 %90.0 %94.8 %95.0 %95.4 %
Office86.8 %88.1 %89.5 %90.8 %89.7 %
Other (3) and discontinued operations
87.2 %91.0 %89.6 %89.5 %91.5 %
Overall Portfolio (5)
89.0 %90.0 %92.6 %92.5 %92.9 %
______________________________
(1) Non same-store properties were:
Acquisitions:
                  Multifamily - Assembly Alexandria, Assembly Manassas, Assembly Dulles, Assembly Leesburg, Assembly Herndon, Assembly Germantown, Assembly Watkins Mill and Cascade at Landmark
Development:
                  Multifamily - The Trove
          Sold properties:
                  Office - Quantico Corporate Center, 1776 G Street and John Marshall II
          Discontinued operations:
                  Retail - Wheaton Park, Bradlee Shopping Center, Shoppes at Foxchase, Gateway Overlook, Olney Village Center, Frederick County Square, Centre at Hagerstown and Frederick Crossing
(2) Average occupancy is based on monthly occupied net rentable square footage as a percentage of total net rentable square footage, except for the rows labeled "Multifamily," on which average occupancy is based on average monthly occupied units as a percentage of total units. The square footage for multifamily properties only includes residential space. The occupied square footage for office and other properties includes short-term lease agreements.
(3) Consists of retail centers not classified as discontinued operations: Takoma Park, Westminster, Concord Centre, Chevy Chase Metro Plaza, 800 S. Washington Street, Randolph Shopping Center, Montrose Shopping Center and Spring Valley Village.
(4) Multifamily average occupancy for the 2020 periods declined due to the addition of the total rentable units at the Trove, which began to lease-up in the first quarter of 2020.
(5) Average occupancy based on monthly occupied net rentable square footage excludes the Assembly Portfolio and Cascade at Landmark for the 2019 periods.
23



Same-Store Portfolio and Overall Ending Occupancy Levels by Sector

Ending Occupancy - Same-Store Properties (1) (2)
SectorJune 30, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Multifamily93.8 %95.3 %95.0 %95.1 %95.2 %
Office86.8 %87.2 %88.8 %88.7 %89.2 %
Other (3)
84.0 %91.1 %90.9 %89.0 %88.7 %
Overall Portfolio90.0 %91.6 %92.0 %91.9 %92.2 %
Ending Occupancy - All Properties (2)
SectorJune 30, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Multifamily (4)
89.8 %89.9 %94.9 %95.0 %95.3 %
Office86.8 %88.1 %89.6 %90.3 %90.7 %
Other (3) and discontinued operations
84.0 %91.1 %90.9 %89.0 %91.5 %
Overall Portfolio89.4 %89.9 %92.8 %93.0 %93.1 %
______________________________
(1) Non same-store properties were:
Acquisitions:
                  Multifamily - Assembly Alexandria, Assembly Manassas, Assembly Dulles, Assembly Leesburg, Assembly Herndon, Assembly Germantown, Assembly Watkins Mill and Cascade at Landmark
Development:
                  Multifamily - The Trove
          Sold properties:
                  Office - Quantico Corporate Center, 1776 G Street and John Marshall II
          Discontinued operations:
                  Retail - Wheaton Park, Bradlee Shopping Center, Shoppes at Foxchase, Gateway Overlook, Olney Village Center, Frederick County Square, Centre at Hagerstown and Frederick Crossing
(2) Ending occupancy is calculated as occupied square footage as a percentage of total square footage as of the last day of that period, except for the rows labeled "Multifamily," on which ending occupancy is calculated as occupied units as a percentage of total available units as of the last day of that period. The occupied square footage for office and other properties includes short-term lease agreements.
(3) Consists of retail centers not classified as discontinued operations: Takoma Park, Westminster, Concord Centre, Chevy Chase Metro Plaza, 800 S. Washington Street, Randolph Shopping Center, Montrose Shopping Center and Spring Valley Village.
(4) Multifamily ending occupancy for the 2020 periods declined due to the addition of the total rentable units at the Trove, which began to lease-up in the first quarter of 2020.
24



Acquisition and Disposition Summary
Dispositions
LocationDisposition DateProperty TypeSquare FeetContract Sales Price
(in thousands)
GAAP Loss on Sale
(in thousands)
John Marshall IITysons, VAApril 21, 2020Office223,000  $57,000  $(6,855) 
223,000  $57,000  $(6,855) 



25



Development Summary
June 30, 2020
Development
Property and LocationTotal Rentable Square Feet or # of Units
Anticipated Total Cash Cost (1)
(in thousands)
Cash Cost to Date (1) (in thousands)
Initial Occupancy
Trove (Wellington land parcel), Arlington, VA401 units$123,000  $109,880  
Phase I - first quarter 2020 (2)
Phase II - fourth quarter 2020 (2)
______________________________
(1)  Represents anticipated/actual cash expenditures and excludes allocations of capitalized corporate overhead costs and interest.

(2)  This development project has two phases: Phase I consists of 203 units and a ten-level garage. In February 2020, leasing commenced with the first deliveries of Phase I units and the completion of the ten-level garage. Phase II consists of 198 units, with delivery of units anticipated to commence in the fourth quarter of 2020.






26


Commercial Leasing Summary - New Leases
2nd Quarter 20201st Quarter 20204th Quarter 20193rd Quarter 20192nd Quarter 2019
Gross Leasing Square Footage
      Office Buildings19,79545,97646,28635,36432,073
      Retail Centers42015,3928,4664,62469,170
Total20,21561,36854,75239,988101,243
Weighted Average Term (years)
      Office Buildings8.34.47.89.06.6
      Retail Centers5.05.514.93.810.3
Total8.34.78.99.29.2
Weighted Average Free Rent Period (months)
      Office Buildings7.31.16.99.43.0
      Retail Centers1.16.43.01.6
Total7.31.16.88.82.5
Rental Rate Increases:GAAPCASHGAAPCASHGAAPCASHGAAPCASHGAAPCASH
      Rate on expiring leases
            Office Buildings$54.47  $50.74  $43.39  $43.12  $43.09  $43.81  $42.68  $43.70  $46.75  $46.32  
            Retail Centers15.93  15.00  17.96  17.90  60.79  50.44  40.59  38.41  10.36  10.04  
Total$53.67  $50.00  $37.01  $36.80  $45.83  $44.83  $42.44  $43.09  $21.89  $21.54  
      Rate on new leases
            Office Buildings$54.89  $49.55  $47.20  $45.37  $57.63  $52.52  $52.20  $47.09  $51.02  $47.15  
            Retail Centers15.93  15.00  21.31  19.36  61.86  51.03  40.59  38.41  11.86  11.08  
Total$54.08  $48.83  $40.71  $38.85  $58.28  $52.29  $50.86  $46.09  $24.26  $22.51  
      Percentage Increase
            Office Buildings0.8 %(2.3)%8.8 %5.2 %33.7 %19.9 %22.3 %7.8 %9.1 %1.8 %
            Retail Centers — %— %18.7 %8.2 %1.8 %1.2 %— %— %14.5 %10.4 %
Total0.8 %(2.3)%10.0 %5.6 %27.2 %16.6 %19.8 %7.0 %10.8 %4.5 %
Total Dollars$ per Sq FtTotal Dollars$ per Sq FtTotal Dollars$ per Sq FtTotal Dollars$ per Sq FtTotal Dollars$ per Sq Ft
Tenant Improvements
Office Buildings$1,667,073  $84.22  $480,677  $10.45  $3,234,510  $69.88  $2,545,774  $71.99  $1,628,785  $50.78  
Retail Centers3,000  7.14  9,000  0.58  1,075,385  127.02  —  —  1,260,945  18.23  
Subtotal$1,670,073  $82.62  $489,677  $7.98  $4,309,895  $78.71  $2,545,774  $63.66  $2,889,730  $28.54  
Leasing Commissions
Office Buildings$464,719  $23.48  $240,732  $5.24  $1,172,922  $25.34  $944,177  $26.70  $560,319  $17.47  
Retail Centers1,338  3.19  95,055  6.18  360,543  42.59  31,238  6.76  354,914  5.13  
Subtotal$466,057  $23.06  $335,787  $5.47  $1,533,465  $28.01  $975,415  $24.39  $915,233  $9.04  
Tenant Improvements and Leasing Commissions
Office Buildings$2,131,792  $107.70  $721,409  $15.69  $4,407,432  $95.22  $3,489,951  $98.69  $2,189,104  $68.25  
Retail Centers4,338  10.33  104,055  6.76  1,435,928  169.61  31,238  6.76  1,615,859  23.36  
Total$2,136,130  $105.68  $825,464  $13.45  $5,843,360  $106.72  $3,521,189  $88.05  $3,804,963  $37.58  
______________________________
Note: This table excludes short-term lease agreements and activity at properties sold during the quarter. The cost of landlord build-out on Space+ leases that are excluded from Tenant Improvements in the table above totaled $1.1 million for leases executed in the 2020 periods.
27



Commercial Leasing Summary - Renewal Leases
2nd Quarter 20201st Quarter 20204th Quarter 20193rd Quarter 20192nd Quarter 2019
Gross Leasing Square Footage
      Office Buildings 15,35942,57456,81115,93652,016
      Retail Centers19,3508,19311,145115,275
Total15,35961,92465,00427,081167,291
Weighted Average Term (years)
      Office Buildings1.73.78.73.910.6
      Retail Centers7.15.07.88.9
Total1.74.88.25.59.4
Weighted Average Free Rent Period (months)
      Office Buildings4.51.26.51.510.6
      Retail Centers0.11.1
Total4.51.05.80.95.3
Rental Rate Increases:GAAPCASHGAAPCASHGAAPCASHGAAPCASHGAAPCASH
      Rate on expiring leases
            Office Buildings$43.93  $50.65  $43.46  $44.70  $37.12  $37.67  $44.38  $46.25  $37.41  $42.49  
            Retail Centers—  —  19.88  20.96  36.13  38.30  31.30  32.75  14.00  14.35  
Total$43.93  $50.65  $36.09  $37.28  $37.00  $37.75  $39.00  $40.70  $21.28  $23.10  
      Rate on new leases
            Office Buildings$52.44  $51.62  $46.39  $45.00  $47.03  $42.21  $51.27  $49.29  $38.68  $34.16  
            Retail Centers—  —  21.73  20.64  39.33  38.06  42.24  40.38  16.13  15.32  
Total$52.44  $51.62  $38.69  $37.39  $46.06  $41.69  $47.55  $45.62  $23.14  $21.18  
      Percentage Increase
            Office Buildings19.4 %1.9 %6.7 %0.7 %26.7 %12.1 %15.5 %6.6 %3.4 %(19.6)%
            Retail Centers— %— %9.3 %(1.5)%8.9 %(0.6)%35.0 %23.3 %15.2 %6.8 %
Total19.4 %1.9 %7.2 %0.3 %24.5 %10.4 %21.9 %12.1 %8.7 %(8.3)%
Total Dollars$ per Sq FtTotal Dollars$ per Sq FtTotal Dollars$ per Sq FtTotal Dollars$ per Sq FtTotal Dollars$ per Sq Ft
Tenant Improvements
Office Buildings$—  $—  $79,005  $1.86  $2,101,721  $36.99  $23,882  $1.50  $3,663,033  $70.42  
Retail Centers—  —  125,447  6.48  —  —  —  —  —  —  
Subtotal$—  $—  $204,452  $3.30  $2,101,721  $32.33  $23,882  $0.88  $3,663,033  $21.90  
Leasing Commissions
Office Buildings$41,780  $2.72  $209,309  $4.92  $1,144,764  $20.15  $101,139  $6.35  $970,622  $18.66  
Retail Centers—  —  34,498  1.78  20,099  2.45  34,664  3.11  267,317  2.32  
Subtotal$41,780  $2.72  $243,807  $3.94  $1,164,863  $17.92  $135,803  $5.01  $1,237,939  $7.40  
Tenant Improvements and Leasing Commissions
Office Buildings$41,780  $2.72  $288,314  $6.78  $3,246,485  $57.14  $125,021  $7.85  $4,633,655  $89.08  
Retail Centers—  —  159,945  8.26  20,099  2.45  34,664  3.11  267,317  2.32  
Total$41,780  $2.72  $448,259  $7.24  $3,266,584  $50.25  $159,685  $5.88  $4,900,972  $29.30  
______________________________
Note: This table excludes short-term lease agreements and activity at properties sold during the quarter.

28



10 Largest Tenants - Based on Annualized Commercial Income
June 30, 2020
TenantNumber of BuildingsWeighted Average Remaining Lease Term in Months Percentage of Aggregate Portfolio Annualized Commercial IncomeAggregate Rentable Square FeetPercentage of Aggregate Occupied Square Feet
Atlantic Media, Inc. 88  5.5 %134,084  4.1 %
Capital One, N.A. 22  4.0 %143,090  4.3 %
EIG Management Company, LLC 207  2.2 %51,252  1.6 %
B. Riley Financial 30  2.2 %54,540  1.7 %
Epstein, Becker & Green, P.C. 102  2.1 %55,318  1.7 %
Hughes Hubbard & Reed LLP 152  2.0 %47,788  1.5 %
Morgan Stanley Smith Barney Financing 123  1.8 %42,316  1.3 %
Promontory Interfinancial Network, LLC 77  1.7 %36,867  1.1 %
Raytheon BBN Technologies Corporation 33  1.6 %43,277  1.3 %
Graham Holdings Company 53  1.6 %33,815  1.0 %
Total/Weighted Average80  24.7 %642,347  19.6 %
______________________________
Note: This table excludes short-term lease agreements.


29


Industry Diversification - Office
June 30, 2020
Industry Classification (NAICS)Annualized Base Rental RevenuePercentage of Aggregate Annualized RentAggregate Rentable Square FeetPercentage of Aggregate Square Feet
Office:
Professional, Scientific, and Technical Services$30,227,041  24.38 %697,799  26.85 %
Finance and Insurance24,722,697  19.94 %473,256  18.21 %
Other Services (except Public Administration)19,228,714  15.51 %389,406  14.98 %
Information15,409,557  12.43 %292,285  11.24 %
Legal Services11,793,225  9.51 %222,376  8.56 %
Health Care and Social Assistance6,365,182  5.13 %173,625  6.68 %
Public Administration3,613,257  2.91 %46,643  1.79 %
Real Estate, Rental and Leasing3,233,300  2.61 %93,370  3.59 %
Miscellaneous:
Retail Trade3,139,768  2.53 %53,448  2.06 %
Accomodation and Food Services2,016,040  1.63 %50,948  1.96 %
Other4,255,763  3.42 %106,103  4.08 %
Total$124,004,544  100.00 %2,599,259  100.00 %
______________________________
Note: Federal government tenants comprise 2.5% of annualized base rental revenue.
chart-b8624816dd9c44221.jpg
30



Lease Expirations
June 30, 2020
YearNumber of LeasesRentable Square FeetPercent of Rentable Square Feet
Annualized Rent (1)
Average Rental Rate
Percent of Annualized Rent (1)
Office:
202024  125,902  5.01 %$5,590,926  $44.41  4.05 %
202149  214,373  8.54 %8,727,440  40.71  6.31 %
202245  377,940  15.05 %18,852,586  49.88  13.64 %
202357  304,554  12.13 %15,283,072  50.18  11.06 %
202452  291,985  11.63 %15,566,565  53.31  11.26 %
2025 and thereafter140  1,195,863  47.64 %74,193,029  62.04  53.68 %
367  2,510,617  100.00 %$138,213,618  55.05  100.00 %
Other:
2020 13,195  2.30 %$227,594  $17.25  1.56 %
202110  70,891  12.34 %1,500,910  21.17  10.28 %
202213  78,934  13.75 %1,817,214  23.02  12.45 %
202318  65,858  11.47 %1,644,596  24.97  11.27 %
202414  130,534  22.73 %3,009,903  23.06  20.62 %
2025 and thereafter36  214,842  37.41 %6,394,072  29.76  43.82 %
95  574,254  100.00 %$14,594,289  25.41  100.00 %
Total:
202028  139,097  4.51 %$5,818,520  $41.83  3.81 %
202159  285,264  9.25 %10,228,350  35.86  6.69 %
202258  456,874  14.81 %20,669,800  45.24  13.53 %
202375  370,412  12.01 %16,927,668  45.70  11.08 %
202466  422,519  13.70 %18,576,468  43.97  12.16 %
2025 and thereafter176  1,410,705  45.72 %80,587,101  57.13  52.73 %
462  3,084,871  100.00 %$152,807,907  49.53  100.00 %
______________________________
(1) Annualized Rent is equal to the rental rate effective at lease expiration (cash basis) multiplied by 12.

31



Schedule of Properties
June 30, 2020
 PROPERTIES LOCATION YEAR ACQUIRED YEAR CONSTRUCTED# OF UNITS NET RENTABLE SQUARE FEET
LEASED % (1)
ENDING OCCUPANCY (1)
Multifamily Buildings / # units
ClayborneAlexandria, VA200820087460,000  97.3 %95.9 %
Riverside ApartmentsAlexandria, VA201619711,2221,001,000  96.8 %94.4 %
Park AdamsArlington, VA19691959200173,000  96.5 %94.5 %
Bennett ParkArlington, VA20072007224215,000  97.3 %94.2 %
The ParamountArlington, VA20131984135141,000  97.0 %92.6 %
The MaxwellArlington, VA20112014163116,000  97.5 %93.9 %
The WellingtonArlington, VA20151960711600,000  96.8 %94.0 %
Roosevelt TowersFalls Church, VA19651964191170,000  97.4 %94.2 %
The Ashby at McLeanMcLean, VA19961982256274,000  95.7 %93.0 %
Bethesda Hill ApartmentsBethesda, MD19971986195225,000  96.9 %94.4 %
3801 Connecticut AvenueWashington, DC19631951307178,000  94.8 %92.2 %
Kenmore ApartmentsWashington, DC20081948374268,000  94.9 %91.7 %
Yale WestWashington, DC20142011216173,000  96.8 %94.9 %
Assembly AlexandriaAlexandria, VA20191990532437,000  97.0 %94.2 %
Assembly ManassasManassas, VA20191986408390,000  97.3 %94.1 %
Assembly DullesHerndon, VA20192000328361,000  97.9 %96.0 %
Assembly LeesburgLeesburg, VA20191986134124,000  98.5 %98.5 %
Assembly HerndonHerndon, VA20191991283221,000  96.8 %94.3 %
Assembly GermantownGermantown, MD20191990218211,000  98.6 %95.4 %
Assembly Watkins MillGaithersburg, MD20191975210193,000  98.6 %98.6 %
Cascade at LandmarkAlexandria, VA20191988277273,000  96.4 %94.9 %
Subtotal Stabilized Properties6,6585,804,000  96.8 %94.3 %
The Trove (2)
Arlington, VA20152020401293,000  14.7 %14.5 %
Subtotal All Properties7,0596,097,000  
______________________________
(1)  Leased percentage and ending occupancy calculations are based on units for multifamily buildings.
(2)  This development project consists of 401 units with 131 units delivered in the first and second quarters of 2020. See page 23 for further information.

32



Schedule of Properties (continued)
June 30, 2020
 PROPERTIES LOCATION YEAR ACQUIRED YEAR CONSTRUCTED NET RENTABLE SQUARE FEET
LEASED % (1)
ENDING OCCUPANCY (1)
Office Buildings
515 King StreetAlexandria, VA1992196675,000  81.5 %81.5 %
Courthouse SquareAlexandria, VA20001979120,000  81.5 %81.5 %
1600 Wilson BoulevardArlington, VA19971973170,000  88.6 %88.5 %
Fairgate at BallstonArlington, VA20121988145,000  87.7 %78.6 %
Arlington TowerArlington, VA20181980/2014392,000  92.6 %88.5 %
Monument IIHerndon, VA20072000209,000  95.1 %95.1 %
Silverline CenterTysons, VA19971972/1986/1999/2015550,000  88.6 %86.9 %
1901 Pennsylvania AvenueWashington, DC19771960101,000  86.9 %85.6 %
1220 19th StreetWashington, DC19951976103,000  79.3 %67.5 %
2000 M StreetWashington, DC20071971233,000  85.8 %85.8 %
1140 Connecticut AvenueWashington, DC20111966184,000  88.6 %88.6 %
1227 25th StreetWashington, DC20111988135,000  89.6 %82.3 %
Army Navy BuildingWashington, DC20141912/1987/2017108,000  100.0 %100.0 %
1775 Eye Street, NWWashington, DC20141964189,000  89.3 %89.3 %
Watergate 600Washington, DC20171972/1997294,000  89.4 %87.5 %
Subtotal3,008,000  89.1 %86.8 %
______________________________
(1)  The leased and occupied square footage for office and retail properties includes short-term lease agreements.
33



Schedule of Properties (continued)
June 30, 2020
 PROPERTIES LOCATION YEAR ACQUIRED YEAR CONSTRUCTED NET RENTABLE SQUARE FEET
LEASED % (1)
ENDING OCCUPANCY (1)
Retail Centers
800 S. Washington StreetAlexandria, VA1998/20031955/195946,000  90.6 %90.6 %
Concord CentreSpringfield, VA1973196075,000  89.5 %87.0 %
Randolph Shopping CenterRockville, MD2006197283,000  84.1 %69.9 %
Montrose Shopping CenterRockville, MD20061970149,000  74.4 %74.4 %
Takoma ParkTakoma Park, MD1963196251,000  100.0 %100.0 %
WestminsterWestminster, MD19721969150,000  95.3 %95.3 %
Chevy Chase Metro PlazaWashington, DC1985197549,000  83.0 %83.0 %
Spring Valley VillageWashington, DC20141941/1950/201894,000  87.6 %79.9 %
Subtotal697,000  87.0 %84.0 %
TOTAL PORTFOLIO9,802,000  
______________________________
(1)  The leased and occupied square footage for office and retail properties includes short-term lease agreements.

34



Supplemental Definitions
June 30, 2020
Adjusted EBITDA (a non-GAAP measure) is earnings before interest expense, taxes, depreciation, amortization, gain/loss on sale of real estate, casualty gain/loss, real estate impairment, gain/loss on extinguishment of debt, restructuring expenses (which include severance, accelerated share-based compensation and other expenses related to a restructuring of corporate personnel), acquisition expenses and gain from non-disposal activities.
Annualized base rent ("ABR") is calculated as monthly base rent (cash basis) per the lease, as of the reporting period, multiplied by 12.
Average Effective Rent per Unit represents the average of gross rent amounts, divided by the average occupancy (in units) for the period presented.
Average occupancy is based on monthly occupied net rentable square footage as a percentage of total net rentable square footage, except for the rows labeled "Multifamily (calculated on a unit basis)," on which average occupancy is based on average monthly occupied units as a percentage of total units. The square footage for multifamily properties only includes residential space. The occupied square footage for office and retail properties includes temporary lease agreements.
Debt service coverage ratio is computed by dividing earnings attributable to the controlling interest before interest expense, taxes, depreciation, amortization, real estate impairment, gain on sale of real estate, gain/loss on extinguishment of debt, severance expense, relocation expense, acquisition and structuring expenses and gain/loss from non-disposal activities by interest expense (including interest expense from discontinued operations) and principal amortization.
Debt to total market capitalization is total debt divided by the sum of total debt plus the market value of shares outstanding at the end of the period.
Earnings to fixed charges ratio is computed by dividing earnings attributable to the controlling interest by fixed charges. For this purpose, earnings consist of income from continuing operations (or net income if there are no discontinued operations) plus fixed charges, less capitalized interest. Fixed charges consist of interest expense (excluding interest expense from discontinued operations), including amortized costs of debt issuance, plus interest costs capitalized.
Ending Occupancy is calculated as occupied square footage as a percentage of total square footage as of the last day of that period, except Multifamily, on which ending occupancy is calculated as occupied units as a percentage of total available units as of the last day of that period.
NAREIT Funds from operations ("NAREIT FFO") is defined by 2018 National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) FFO White Paper Restatement, as net income (computed in accordance with generally accepted accounting principles (“GAAP”)) excluding gains (or losses) associated with the sale of property, impairment of depreciable real estate and real estate depreciation and amortization. We consider NAREIT 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 NAREIT FFO more accurately provides investors an indication of our ability to incur and service debt, make capital expenditures and fund other needs. Our FFO may not be comparable to FFO reported by other real estate investment trusts. These other REITs may not define the term in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently. NAREIT FFO is a non-GAAP measure.
Core Funds From Operations ("Core FFO") is calculated by adjusting NAREIT FFO for the following items (which we believe are not indicative of the performance of Washington REIT’s operating portfolio and affect the comparative measurement of Washington REIT’s operating performance over time): (1) gains or losses on extinguishment of debt, (2) expenses related to acquisition and structuring activities, (3) executive transition costs, severance expenses and other expenses related to corporate restructuring and executive retirements or resignations, (4) property impairments, casualty gains and losses, and gains or losses on sale not already excluded from NAREIT FFO, as appropriate, and (5) relocation expense. These items can vary greatly from period to period, depending upon the volume of our acquisition activity and debt retirements, among other factors. We believe that by excluding these items, Core FFO serves as a useful, supplementary measure of Washington REIT’s ability to incur and service debt, and distribute dividends to its shareholders. Core FFO is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs.
Funds Available for Distribution ("FAD") is calculated by subtracting from NAREIT FFO (1) recurring expenditures, tenant improvements and leasing costs that are capitalized and amortized and are necessary to maintain our properties and revenue stream (excluding items contemplated prior to acquisition or associated with development / redevelopment of a property) and (2) straight line rents, then adding (3) non-real estate depreciation and amortization, (4) non-cash fair value interest expense and (5) amortization of restricted share compensation, then adding or subtracting the (6) amortization of lease intangibles, (7) real estate impairment and (8) non-cash gain/loss on extinguishment of debt, as appropriate. FAD is included herein because we consider it to be a performance 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.
Core Funds Available for Distribution ("Core FAD") is calculated by adjusting FAD for the following items (which we believe are not indicative of the performance of Washington REIT’s operating portfolio and affect the comparative measurement of Washington REIT’s operating performance over time): (1) gains or losses on extinguishment of debt, (2) costs related to the acquisition of properties, (3) non-share-based executive transition costs, severance expenses and other expenses related to corporate restructuring and executive retirements or resignations, (4) property impairments, casualty gains and losses, and gains or losses on sale not already excluded from FAD, as appropriate, and (5) relocation expense. These items can vary greatly from period to period, depending upon the volume of our acquisition activity and debt retirements, among other factors. We believe that by excluding these items, Core FAD serves as a useful, supplementary performance measure of Washington REIT’s ability to incur and service debt, and distribute dividends to its shareholders. Core FAD is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs.
35


Net Operating Income (“NOI”) is a non-GAAP measure defined as real estate rental revenue less real estate expenses. NOI is calculated as net income, less non-real estate revenue and the results of discontinued operations (including the gain or loss on sale, if any), plus interest expense, depreciation and amortization, general and administrative expenses, acquisition costs, real estate impairment, casualty gains and losses, and gain or loss on extinguishment of debt. We also present NOI on a cash basis ("Cash NOI") which is calculated as NOI less the impact of straightlining of rent and amortization of market intangibles. We provide each of NOI and cash NOI as a supplement to net income calculated in accordance with GAAP. As such, neither should be considered an alternative to net income as an indication of our operating performance. They are the primary performance measures we use to assess the results of our operations at the property level.
Recurring capital expenditures represent non-accretive building improvements and leasing costs required to maintain current revenues. Recurring capital expenditures do not include acquisition capital that was taken into consideration when underwriting the purchase of a building or which are incurred to bring a building up to "operating standard."
Rent increases on renewals and rollovers are calculated as the difference, weighted by square feet, of the net ABR due the first month after a term commencement date and the net ABR due the last month prior to the termination date of the former tenant's term. Beginning in Q4 2018, in cases where the space has been remeasured in accordance with criteria set by the Building Owners and Managers Association ("BOMA"), the square feet former tenant's space is adjusted to be equivalent to the square feet of the new/renewing tenant's space.
Same-store portfolio properties include properties that were owned for the entirety of the years being compared, and exclude properties under redevelopment or development and properties acquired, sold or classified as held for sale during the years being compared. We define development properties as those for which we have planned or ongoing major construction activities on existing or acquired land pursuant to an authorized development plan. We consider a property's development activities to be complete when the property is ready for its intended use. The property is categorized as same-store when it has been ready for its intended use for the entirety of the years being compared. We define redevelopment properties as those for which have planned or ongoing significant development and construction activities on existing or acquired buildings pursuant to an authorized plan, which has an impact on current operating results, occupancy and the ability to lease space with the intended result of a higher economic return on the property. We categorize a redevelopment property as same-store when redevelopment activities have been complete for the majority of each year being compared.
Same-store portfolio NOI growth is the change in the NOI of the same-store portfolio properties from the prior reporting period to the current reporting period.
Short-term leases are commercial leases with a term of less than 12 months.
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. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of WashREIT to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Currently, one of the most significant factors is the adverse effect of the COVID-19 virus and ensuing economic turmoil on the financial condition, results of operations, cash flows and performance of WashREIT, particularly the impact of our ability to collect rent on schedule or at all, our ability to lease or release our commercial spaces, and increased credit losses, on the performance of our tenants generally, and on the global economy and financial markets. The extent to which COVID-19 impacts WashREIT and its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others. Moreover, investors are cautioned to interpret many of the risks identified in the risk factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2019, as amended by Amendment No. 1 to the Annual Report on Form 10-K, filed on March 6, 2020, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, filed on April 27, 2020, as being heightened as a result of the ongoing and numerous adverse impacts of COVID-19. Additional factors which may cause the actual results, performance, or achievements of WashREIT to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements include, but are not limited to the risks associated with the ownership of real estate in general and our real estate assets in particular; the economic health of the greater Washington metro region; the risk of failure to enter into/and or complete contemplated acquisitions and dispositions at all, within the price ranges anticipated and on the terms and timing anticipated; changes in the composition of our portfolio; fluctuations in interest rates; reductions in or actual or threatened changes to the timing of federal government spending; the risks related to use of third-party providers and joint venture partners; the ability to control our operating expenses; the economic health of our tenants; the supply of competing properties; shifts away from brick and mortar stores to e-commerce; the availability and terms of financing and capital and the general volatility of securities markets; compliance with applicable laws, including those concerning the environment and access by persons with disabilities; terrorist attacks or actions and/or cyber-attacks; weather conditions, natural disasters and pandemics; ability to maintain key personnel; failure to qualify and maintain our qualification as a REIT and the risks of changes in laws affecting REITs; and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2019 Form 10-K, as amended by Amendment No. 1 to the Annual Report on Form 10-K, filed on March 6, 2020, and subsequent Quarterly Reports on Form 10-Q. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We undertake no obligation to update our forward-looking statements or risk factors to reflect new information, future events, or otherwise.
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