picture2a.jpg



picture1a.jpg



Table of Contents
wrelogoa.jpg
June 30, 2021


SchedulePage
Key Financial Data
Capital Analysis
Portfolio Analysis
Same-Store Operating Results - Multifamily
Same-Store Operating Expenses - Multifamily
Tenant Analysis
Appendix



Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
wrelogoa.jpg
Six Months EndedThree Months Ended
OPERATING RESULTS6/30/20216/30/20206/30/20213/31/202112/31/20209/30/20206/30/2020
Real estate rental revenue$81,904 $89,500 $41,297 $40,607 $42,788 $43,716 $43,757 
Real estate expenses(32,684)(34,046)(16,230)(16,454)(17,427)(17,654)(16,588)
49,220 55,454 25,067 24,153 25,361 26,062 27,169 
Real estate depreciation and amortization(34,290)(34,619)(17,303)(16,987)(17,653)(18,064)(17,372)
Income from real estate14,930 20,835 7,764 7,166 7,708 7,998 9,797 
Interest expense(20,281)(19,596)(10,158)(10,123)(8,998)(8,711)(8,751)
Loss on interest rate derivatives(5,760)— (5,760)— (560)— — 
Loss on sale of real estate— (7,539)— — (7,470)— (7,539)
Gain (loss) on extinguishment of debt— 262 — — (296)— (206)
Other income2,806 — 1,522 1,284 — — — 
General and administrative expenses(11,929)(11,633)(6,325)(5,604)(5,988)(6,330)(5,296)
Transformation costs(3,780)— (3,780)— — — — 
Loss from continuing operations(24,014)(17,671)(16,737)(7,277)(15,604)(7,043)(11,995)
Discontinued operations:
Income from operations of properties sold or held for sale15,875 13,984 9,745 6,130 4,567 6,087 6,589 
Net loss$(8,139)$(3,687)$(6,992)$(1,147)$(11,037)$(956)$(5,406)
Per Share Data:
Net loss$(0.10)$(0.05)$(0.08)$(0.02)$(0.13)$(0.01)$(0.07)
Fully diluted weighted average shares outstanding84,437 82,120 84,461 84,413 82,962 82,186 82,153 
Percentage of Revenues:
Real estate expenses39.9 %38.0 %39.3 %40.5 %40.7 %40.4 %37.9 %
General and administrative expenses14.6 %13.0 %15.3 %13.8 %14.0 %14.5 %12.1 %
Ratios:
Adjusted EBITDA / Interest expense3.9 x4.2 x4.0 x3.9 x4.1 x4.4 x4.7 x
Net loss / Real estate rental revenue(9.9)%(4.1)%(16.9)%(2.8)%(25.8)%(2.2)%(12.4)%
4


Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
wrelogoa.jpg
6/30/20213/31/202112/31/20209/30/20206/30/2020
Assets
Land$301,709 $301,709 $301,709 $324,155 $324,155 
Income producing property1,490,975 1,483,774 1,473,335 1,542,440 1,517,018 
1,792,684 1,785,483 1,775,044 1,866,595 1,841,173 
Accumulated depreciation and amortization(367,519)(351,133)(335,006)(369,116)(352,770)
Net income producing property1,425,165 1,434,350 1,440,038 1,497,479 1,488,403 
Properties under development or held for future development30,065 29,718 36,494 76,359 88,044 
Total real estate held for investment, net1,455,230 1,464,068 1,476,532 1,573,838 1,576,447 
Investment in real estate held for sale, net779,121 785,763 795,687 802,203 808,681 
Cash and cash equivalents5,435 3,015 7,697 3,810 7,960 
Restricted cash595 566 593 606 621 
Rents and other receivables12,916 11,329 9,725 18,132 17,528 
Prepaid expenses and other assets28,297 28,126 29,587 39,540 36,845 
Other assets related to properties sold or held for sale86,811 87,169 89,997 94,143 94,640 
Total assets$2,368,405 $2,380,036 $2,409,818 $2,532,272 $2,542,722 
Liabilities
Notes payable, net$945,905 $945,634 $945,370 $897,443 $897,060 
Line of credit43,000 33,000 42,000 186,000 181,000 
Accounts payable and other liabilities47,897 44,241 44,067 81,579 74,013 
Dividend payable25,474 25,424 25,361 24,767 24,760 
Advance rents1,572 1,667 2,461 2,104 2,005 
Tenant security deposits4,374 4,256 4,221 4,731 4,706 
Other liabilities related to properties sold or held for sale23,748 26,912 25,229 28,533 30,612 
Total liabilities1,091,970 1,081,134 1,088,709 1,225,157 1,214,156 
Equity
Preferred shares; $0.01 par value; 10,000 shares authorized— — — — — 
Shares of beneficial interest, $0.01 par value; 150,000 shares authorized846 846 844 824 823 
Additional paid-in capital1,654,409 1,651,680 1,649,366 1,601,160 1,598,620 
Distributions in excess of net income(357,934)(325,469)(298,860)(262,435)(236,673)
Accumulated other comprehensive loss (21,200)(28,473)(30,563)(32,759)(34,533)
Total shareholders' equity1,276,121 1,298,584 1,320,787 1,306,790 1,328,237 
Noncontrolling interests in subsidiaries314 318 322 325 329 
Total equity1,276,435 1,298,902 1,321,109 1,307,115 1,328,566 
Total liabilities and equity$2,368,405 $2,380,036 $2,409,818 $2,532,272 $2,542,722 
5


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

wrelogoa.jpg

Six Months EndedThree Months Ended
6/30/20216/30/20206/30/20213/31/202112/31/20209/30/20206/30/2020
Funds from operations (FFO) (1)
Net loss$(8,139)$(3,687)$(6,992)$(1,147)$(11,037)$(956)$(5,406)
Real estate depreciation and amortization34,290 34,619 17,303 16,987 17,653 18,064 17,372 
Loss on sale of depreciable real estate— 7,539 — — 7,470 — 7,539 
Discontinued operations:
Real estate depreciation and amortization22,904 24,700 10,248 12,656 12,588 12,406 12,227 
NAREIT funds from operations (FFO)49,055 63,171 20,559 28,496 26,674 29,514 31,732 
(Gain) loss on extinguishment of debt— (262)— — 296 — 206 
Loss on interest rate derivatives5,760 — 5,760 — 560 — — 
Severance expense173 — — 173 — — — 
Transformation costs3,780 — 3,780 — — — — 
Core FFO (1)
$58,768 $62,909 $30,099 $28,669 $27,530 $29,514 $31,938 
Allocation to participating securities (2)
(276)(302)(137)(139)(92)(151)(151)
NAREIT FFO per share - basic$0.58 $0.77 $0.24 $0.34 $0.32 $0.36 $0.38 
NAREIT FFO per share - fully diluted$0.58 $0.76 $0.24 $0.34 $0.32 $0.36 $0.38 
Core FFO per share - fully diluted$0.69 $0.76 $0.35 $0.34 $0.33 $0.36 $0.39 
Common dividend per share$0.60 $0.60 $0.30 $0.30 $0.30 $0.30 $0.30 
Average shares - basic84,437 82,120 84,461 84,413 82,962 82,186 82,153 
Average shares - fully diluted (for NAREIT FFO and Core FFO)84,507 82,305 84,519 84,495 83,093 82,357 82,323 
______________________________
(1) See "Supplemental Definitions" on page 33 of this supplemental for the definitions of NAREIT FFO and Core FFO.
(2) 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)

wrelogoa.jpg

Six Months EndedThree Months Ended
6/30/20216/30/20206/30/20213/31/202112/31/20209/30/20206/30/2020
Funds available for distribution (FAD) (1)
NAREIT FFO$49,055 $63,171 $20,559 $28,496 $26,674 $29,514 $31,732 
Non-cash (gain) loss on extinguishment of debt— (1,177)— — 296 — 204 
Tenant improvements and incentives, net of reimbursements(573)(2,949)(1,112)539 (6,250)(4,013)(1,877)
External and internal leasing commissions capitalized(2,406)(1,326)(1,868)(538)(1,445)(1,081)(797)
Recurring capital improvements(2,023)(1,812)(1,156)(867)(2,164)(1,068)(824)
Straight-line rent, net(1,173)(1,318)(625)(548)82 (522)(655)
Non-cash fair value interest expense— (59)— — — — — 
Non-real estate depreciation and amortization of debt costs2,694 1,852 1,350 1,344 987 956 910 
Amortization of lease intangibles, net572 1,001 195 377 477 464 544 
Amortization and expensing of restricted share and unit compensation (2)
3,827 3,422 2,163 1,664 1,972 2,479 1,644 
FAD49,973 60,805 19,506 30,467 20,629 26,729 30,881 
Cash loss on extinguishment of debt— 915 — — — — 
Loss on interest rate derivatives5,760 — 5,760 — 560 — — 
Non-share-based severance expense103 — — 103 — — — 
Transformation costs (3)
3,703 — 3,703 — — — — 
Core FAD (1)
$59,539 $61,720 $28,969 $30,570 $21,189 $26,729 $30,883 
______________________________
(1) See "Supplemental Definitions" on page 33 of this supplemental for the definitions of FAD and Core FAD.
(2) Includes share award modifications related to transformation costs
(3) Excludes share award modifications related to transformation costs

7


Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
(In thousands)
(Unaudited)
wrelogoa.jpg

Six Months EndedThree Months Ended
6/30/20216/30/20206/30/20213/31/202112/31/20209/30/20206/30/2020
Adjusted EBITDA (1)
Net loss$(8,139)$(3,687)$(6,992)$(1,147)$(11,037)$(956)$(5,406)
Add/(deduct):
Interest expense20,281 19,596 10,158 10,123 8,998 8,711 8,751 
Real estate depreciation and amortization57,194 59,319 27,551 29,643 30,241 30,470 29,599 
Non-real estate depreciation467 479 234 233 229 234 241 
Severance expense173 — — 173 — — — 
Transformation costs3,780 — 3,780 — — — — 
Loss on sale of depreciable real estate— 7,539 — — 7,470 — 7,539 
(Gain) loss on extinguishment of debt— (262)— — 296 — 206 
Loss on interest rate derivatives5,760 — 5,760 — 560 — — 
Adjusted EBITDA $79,516 $82,984 $40,491 $39,025 $36,757 $38,459 $40,930 
______________________________
(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, gain/loss on interest rate derivatives, severance expense, acquisition expenses, gain from non-disposal activities and transformation costs. 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)
wrelogoa.jpg

6/30/20213/31/202112/31/20209/30/20206/30/2020
Balances Outstanding
Unsecured
Fixed rate bonds$696,387 $696,174 $695,968 $348,522 $348,375 
Term loans 249,518 249,460 249,402 548,921 548,685 
Credit facility43,000 33,000 42,000 186,000 181,000 
Total$988,905 $978,634 $987,370 $1,083,443 $1,078,060 
Weighted Average Interest Rates
Unsecured
Fixed rate bonds4.3 %4.3 %4.3 %4.5 %4.5 %
Term loans (1)
2.9 %2.9 %2.9 %2.6 %2.6 %
Credit facility1.1 %1.1 %1.1 %1.1 %1.2 %
Weighted Average3.8 %3.8 %3.8 %3.0 %3.0 %
______________________________
(1) WashREIT entered into interest rate swaps to effectively fix the floating interest rates on its total $250.0 million aggregate principal of its term loans outstanding as of June 30, 2021 (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)
wrelogoa.jpg
June 30, 2021
chart-d5d84791d9964be3b57a.jpg
Future Maturities of Debt
YearUnsecured DebtCredit FacilityTotal DebtAvg Interest Rate
2021$— $— $— —%
2022300,000 
(1)
— 300,000 4.0%
2023250,000 
(2)
43,000 
(3)
293,000 2.6%
2024— — — —%
2025— — — —%
2026— — — —%
Thereafter400,000 — 400,000 4.5%
Scheduled principal payments$950,000 $43,000 $993,000 3.8%
Net discounts/premiums(360)— (360)
Loan costs, net of amortization(3,735)— (3,735)
Total maturities$945,905 $43,000 $988,905 3.8%
Weighted average maturity = 4.7 years
______________________________
(1)    Subsequent to the end of the 2021 Quarter, WashREIT provided notice to the holders of its $300.0 million of Senior Notes due in 2022 that it plans to redeem all $300.0 million of Senior Notes due in 2022 in the third quarter of 2021, which it intends to fund using cash available following the sale of the Office Portfolio. The Senior Notes are scheduled to mature in October 2022.
(2)    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 a $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 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%. WashREIT expects to repay $150.0 million of the 2018 Term Loan using sales proceeds from the Office Portfolio and the Retail Portfolio in the third quarter of 2021.
(3)    Maturity date for credit facility of March 2023 assumes election of extension option for two additional 6-month periods.
10



Debt Covenant Compliance
wrelogoa.jpg

Unsecured Public Debt CovenantsUnsecured Private Debt Covenants
Notes PayableLine of Credit
and Term Loans
Notes Payable
Quarter Ended June 30, 2021CovenantQuarter Ended June 30, 2021CovenantQuarter Ended June 30, 2021Covenant
% of Total Indebtedness to Total Assets(1)
38.3 %≤ 65.0% N/AN/AN/AN/A
Ratio of Income Available for Debt Service to Annual Debt Service3.8             ≥ 1.5 N/AN/AN/AN/A
% of Secured Indebtedness to Total Assets(1)
— %≤ 40.0% N/AN/AN/AN/A
Ratio of Total Unencumbered Assets(2) to Total Unsecured Indebtedness
2.6             ≥ 1.5 N/AN/AN/AN/A
% of Net Consolidated Total Indebtedness to Consolidated Total Asset Value(3)
 N/A N/A31.6 %≤ 60.0%31.6 %≤ 60.0%
Ratio of Consolidated Adjusted EBITDA(4) to Consolidated Fixed Charges(5)
 N/A N/A4.33           ≥ 1.504.33           ≥ 1.50
% of Consolidated Secured Indebtedness to Consolidated Total Asset Value(3)
 N/A N/A— %≤ 40.0%— %≤ 40.0%
% of Consolidated Unsecured Indebtedness to Unencumbered Pool Value(6)
 N/A N/A31.6 %≤ 60.0%31.6 %≤ 60.0%
Ratio of Unencumbered Adjusted Net Operating Income to Consolidated Unsecured Interest Expense N/A N/A4.86           ≥ 1.754.86           ≥ 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)
wrelogoa.jpg

Three Months Ended
6/30/20213/31/202112/31/20209/30/20206/30/2020
Market Data
Shares Outstanding84,590 84,564 84,409 82,351 82,327 
Market Price per Share$23.00 $22.10 $21.63 $20.13 $22.20 
Equity Market Capitalization$1,945,570 $1,868,864 $1,825,767 $1,657,726 $1,827,659 
Total Debt$988,905 $978,634 $987,370 $1,083,443 $1,078,060 
Total Market Capitalization$2,934,475 $2,847,498 $2,813,137 $2,741,169 $2,905,719 
Total Debt to Market Capitalization0.34 :10.34 :10.35 :10.40 :10.37 :1
Earnings to Fixed Charges(1)
-0.6x0.3x-0.7x0.2x-0.3x
Debt Service Coverage Ratio(2)
4.0x3.9x4.1x4.4x4.7x
Dividend DataSix Months EndedThree Months Ended
6/30/20216/30/20206/30/20213/31/202112/31/20209/30/20206/30/2020
Total Dividends Declared$50,935 $49,581 $25,473 $25,462 $25,388 $24,806 $24,761 
Common Dividend Declared per Share$0.60 $0.60 $0.30 $0.30 $0.30 $0.30 $0.30 
Payout Ratio (Core FFO basis)87.0 %78.9 %85.7 %88.2 %90.9 %83.3 %76.9 %
Payout Ratio (Core FAD basis)85.7 %80.0 %
______________________________
(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 ($15.0 million) and ($7.5 million) for the three months ended December 31, 2020 and June 30, 2020, 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
2021 vs. 2020
wrelogoa.jpg

Six Months Ended June 30,Three Months Ended June 30,
20212020% Change20212020% Change
Cash Basis:
Multifamily$42,403 $44,862 (5.5)%$21,612 $22,051 (2.0)%
Other (2)
5,257 4,992 5.3 %2,573 2,618 (1.7)%
Overall Same-Store Portfolio (1)
$47,660 $49,854 (4.4)%$24,185 $24,669 (2.0)%
GAAP Basis:
Multifamily$42,393 $44,856 (5.5)%$21,607 $22,046 (2.0)%
Other (2)
6,195 6,206 (0.2)%3,037 3,184 (4.6)%
Overall Same-Store Portfolio (1)
$48,588 $51,062 (4.8)%$24,644 $25,230 (2.3)%
______________________________
(1) Non same-store properties were:
Development:
                  Multifamily - Trove
          Sold properties:
                  Office - John Marshall II, Monument II and 1227 25th Street
          Discontinued operations:
Office - 1901 Pennsylvania Avenue, 515 King Street, 1220 19th Street, 1600 Wilson Boulevard, Silverline Center, Courthouse Square, 2000 M Street, 1140 Connecticut Avenue, Army Navy Club, 1775 Eye Street, Fairgate at Ballston and Arlington Tower
Retail - Takoma Park, Westminster, Concord Centre, Chevy Chase Metro Plaza, 800 S. Washington Street, Randolph Shopping Center, Montrose Shopping Center and Spring Valley Village.
(2) Represents Watergate 600
13


Same-Store Portfolio Net Operating Income (NOI) Detail
(In thousands)
wrelogoa.jpg

Three Months Ended June 30, 2021
Multifamily
Corporate and Other (1)
Total
Real estate rental revenue
Same-store portfolio$35,532 $4,435 $39,967 
Non same-store (1)
1,330 — 1,330 
Total36,862 4,435 41,297 
Real estate expenses
Same-store portfolio13,925 1,398 15,323 
Non same-store (1)
907 — 907 
Total14,832 1,398 16,230 
Net Operating Income (NOI)
Same-store portfolio21,607 3,037 24,644 
Non same-store (1)
423 — 423 
Total$22,030 $3,037 $25,067 
Same-store portfolio NOI (from above)$21,607 $3,037 $24,644 
Straight-line revenue, net for same-store properties(293)(290)
Amortization of acquired lease assets (liabilities) for same-store properties(192)(190)
Amortization of lease intangibles for same-store properties— 21 21 
Same-store portfolio cash NOI$21,612 $2,573 $24,185 
Reconciliation of NOI to net income
Total NOI$22,030 $3,037 $25,067 
Depreciation and amortization(15,302)(2,001)(17,303)
General and administrative expenses— (6,325)(6,325)
Transformation costs— (3,780)(3,780)
Interest expense— (10,158)(10,158)
Other income— 1,522 1,522 
Loss on interest rate derivatives— (5,760)(5,760)
Income (loss) from continuing operations6,728 (23,465)(16,737)
Discontinued operations:
Income from operations of properties classified as discontinued operations (1)
— 9,745 9,745 
Net income (loss)$6,728 $(13,720)$(6,992)
______________________________
(1) For a list of non-same-store and discontinued operations, see page 13 of this Supplemental.
14


Same-Store Portfolio Net Operating Income (NOI) Detail
(In thousands)
wrelogoa.jpg

Three Months Ended March 31, 2021
Multifamily
Corporate and Other (1)
Total
Real estate rental revenue
Same-store portfolio$35,191 $4,440 $39,631 
Non same-store (1)
976 — 976 
                         Total36,167 4,440 40,607 
Real estate expenses
Same-store portfolio14,405 1,282 15,687 
Non same-store (1)
767 — 767 
                         Total15,172 1,282 16,454 
Net Operating Income (NOI)
Same-store portfolio20,786 3,158 23,944 
Non same-store (1)
209 — 209 
                          Total$20,995 $3,158 $24,153 
Same-store portfolio NOI (from above)$20,786 $3,158 $23,944 
Straight-line revenue, net for same-store properties(304)(300)
Amortization of acquired lease assets (liabilities) for same-store properties(191)(190)
Amortization of lease intangibles for same-store properties— 21 21 
Same-store portfolio cash NOI$20,791 $2,684 $23,475 
Reconciliation of NOI to net income
Total NOI$20,995 $3,158 $24,153 
Depreciation and amortization(14,976)(2,011)(16,987)
General and administrative expenses— (5,604)(5,604)
Interest expense— (10,123)(10,123)
Other income— 1,284 1,284 
Income (loss) from continuing operations6,019 (13,296)(7,277)
Discontinued operations:
Income from operations of properties classified as discontinued operations (1)
— 6,130 6,130 
Net income (loss)$6,019 $(7,166)$(1,147)
______________________________
(1) For a list of non-same-store and discontinued operations, see page 13 of this Supplemental.

15


Same-Store Portfolio Net Operating Income (NOI) Detail
(In thousands)
wrelogoa.jpg

Three Months Ended June 30, 2020
Multifamily
Corporate and Other (1)
Total
Real estate rental revenue
Same-store portfolio$35,852 $4,365 $40,217 
Non same-store (1)
214 3,326 3,540 
                         Total36,066 7,691 43,757 
Real estate expenses
Same-store portfolio13,806 1,181 14,987 
Non same-store (1)
304 1,297 1,601 
                         Total14,110 2,478 16,588 
Net Operating Income (NOI)
Same-store portfolio22,046 3,184 25,230 
Non same-store (1)
(90)2,029 1,939 
                          Total$21,956 $5,213 $27,169 
Same-store portfolio NOI (from above)$22,046 $3,184 $25,230 
Straight-line revenue, net for same-store properties(395)(391)
Amortization of acquired lease liabilities for same-store properties(192)(191)
Amortization of lease intangibles for same-store properties— 21 21 
Same-store portfolio cash NOI$22,051 $2,618 $24,669 
Reconciliation of NOI to net income
Total NOI$21,956 $5,213 $27,169 
Depreciation and amortization(14,056)(3,316)(17,372)
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)
Income (loss) from continuing operations7,900 (19,895)(11,995)
Discontinued operations:
Income from operations of properties classified as discontinued operations (1)
— 6,589 6,589 
Net income (loss)$7,900 (13,306)$(5,406)
______________________________
(1) For a list of non-same-store and discontinued operations, see page 13 of this Supplemental.
16


Same-Store Portfolio Net Operating Income (NOI) Detail
(In thousands)
wrelogoa.jpg
Six Months Ended June 30, 2021
Multifamily
Corporate and Other (1)
Total
Real estate rental revenue
Same-store portfolio$70,723 $8,875 $79,598 
Non same-store (1)
2,306 — 2,306 
Total73,029 8,875 81,904 
Real estate expenses
Same-store portfolio28,330 2,680 31,010 
Non same-store (1)
1,674 — 1,674 
Total30,004 2,680 32,684 
Net Operating Income (NOI)
Same-store portfolio42,393 6,195 48,588 
Non same-store (1)
632 — 632 
Total$43,025 $6,195 $49,220 
Same-store portfolio NOI (from above)$42,393 $6,195 $48,588 
Straight-line revenue, net for same-store properties(597)(590)
Amortization of acquired lease assets (liabilities) for same-store properties(383)(380)
Amortization of lease intangibles for same-store properties— 42 42 
Same-store portfolio cash NOI$42,403 $5,257 $47,660 
Reconciliation of NOI to net income
Total NOI$43,025 $6,195 $49,220 
Depreciation and amortization(30,278)(4,012)(34,290)
General and administrative— (11,929)(11,929)
Transformation costs— (3,780)(3,780)
Interest expense— (20,281)(20,281)
Other income— 2,806 2,806 
Loss on interest rate derivatives— (5,760)(5,760)
Income (loss) from continuing operations12,747 (36,761)(24,014)
Discontinued operations:
Income from operations of properties classified as discontinued operations (1)
— 15,875 15,875 
Net income (loss)$12,747 $(20,886)$(8,139)
______________________________
(1) For a list of non-same-store and discontinued operations, see page 13 of this Supplemental.
17


Same-Store Portfolio Net Operating Income (NOI) Detail
(In thousands)
wrelogoa.jpg

Six Months Ended June 30, 2020
Multifamily
Corporate and Other (1)
Total
Real estate rental revenue
Same-store portfolio$72,400 $8,867 $81,267 
Non same-store (1)
251 7,982 8,233 
Total72,651 16,849 89,500 
Real estate expenses
Same-store portfolio27,544 2,661 30,205 
Non same-store (1)
551 3,290 3,841 
Total28,095 5,951 34,046 
Net Operating Income (NOI)
Same-store portfolio44,856 6,206 51,062 
Non same-store (1)
(300)4,692 4,392 
Total$44,556 $10,898 $55,454 
Same-store portfolio NOI (from above)$44,856 $6,206 $51,062 
Straight-line revenue, net for same-store properties(880)(876)
Amortization of acquired lease assets (liabilities) for same-store properties(383)(381)
Amortization of lease intangibles for same-store properties— 49 49 
Same-store portfolio cash NOI$44,862 $4,992 $49,854 
Reconciliation of NOI to net income
Total NOI$44,556 $10,898 $55,454 
Depreciation and amortization(28,016)(6,603)(34,619)
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 
Income (loss) from continuing operations16,368 (34,039)(17,671)
Discontinued operations:
Income from operations of properties classified as discontinued operations (1)
— 13,984 13,984 
Net income (loss)$16,368 $(20,055)$(3,687)
______________________________
(1) For a list of non-same-store and discontinued operations, see page 13 of this Supplemental.
18


Net Operating Income (NOI) by Region
wrelogoa.jpg

Percentage of NOI
Q2 2021YTD 2021
Multifamily
DC12.2 %12.2 %
Maryland8.3 %8.4 %
Virginia79.5 %79.4 %
Total Multifamily100.0 %100.0 %
______________________________
Note: Watergate 600 is located in Washington DC and contributed to 12.1% and 12.6% of total portfolio NOI for Q2 2021 and YTD 2021, respectively.

19


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

wrelogoa.jpg

Apartment Units as of 06/30/2021Six Months EndedThree Months Ended
6/30/20216/30/202006/30/20213/31/202112/31/20209/30/20206/30/2020
Rental and other property revenues
Same-store (1)
6,658$70,723 $72,400 $35,532 $35,191 $35,498 $35,846 $35,852 
Non same-store
Development (2)
401 2,306 251 1,330 976 698 445 214 
Total rental and other property revenues7,05973,029 72,651 36,862 36,167 36,196 36,291 36,066 
Property operating expenses
Same-store28,330 27,544 13,925 14,405 14,304 14,532 13,806 
Non same-store
Development1,674 551 907 767 728 456 304 
Total property operating expenses30,004 28,095 14,832 15,172 15,032 14,988 14,110 
Net Operating Income (NOI)
Same-store42,393 44,856 21,607 20,786 21,194 21,314 22,046 
Non same-store
Development632 (300)423 209 (30)(11)(90)
Total NOI$43,025 $44,556 $22,030 $20,995 $21,164 $21,303 $21,956 
Same-store metrics
Retention (3)
54 %59 %57 %51 %51 %58 %61 %
______________________________
(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 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.

(3)     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)
wrelogoa.jpg

Rental and Other Property RevenueProperty Operating ExpensesNet Operating IncomeAverage OccupancyAverage Effective Monthly Rent per Unit
Quarter-to-Date ComparisonApt UnitsQ2 2021Q2 2020% ChangeQ2 2021Q2 2020% ChangeQ2 2021Q2 2020% ChangeQ2 2021Q2 2020% ChangeQ2 2021Q2 2020% Change
Total/Weighted Average6,658$35,532 $35,852 (0.9)%$13,925 $13,806 0.9 %$21,607 $22,046 (2.0)%95.1 %94.5 %0.6 %$1,665 $1,741 (4.4)%


Rental and Other Property RevenueProperty Operating ExpensesNet Operating IncomeAverage OccupancyAverage Effective Monthly Rent per Unit
Sequential ComparisonApt UnitsQ2 2021Q1 2021% ChangeQ2 2021Q1 2021% ChangeQ2 2021Q1 2021% ChangeQ2 2021Q1 2021% ChangeQ2 2021Q1 2021% Change
Total/Weighted Average6,658$35,532 $35,191 1.0 %$13,925 $14,405 (3.3)%$21,607 $20,786 3.9 %95.1 %94.3 %0.8 %$1,665 $1,682 (1.0)%
Rental and Other Property RevenueProperty Operating ExpensesNet Operating IncomeAverage OccupancyAverage Effective Monthly Rent per Unit
Year-to-Date ComparisonApt UnitsYTD 2021YTD 2020% ChangeYTD 2021YTD 2020% ChangeYTD 2021YTD 2020% ChangeYTD 2021YTD 2020% ChangeYTD 2021YTD 2020% Change
Total/Weighted Average6,658$70,723 $72,400 (2.3)%$28,330 $27,544 2.9 %$42,393 $44,856 (5.5)%94.7 %94.9 %(0.2)%$1,674 $1,737 (3.6)%

21


Same-Store Operating Expenses - Multifamily
(In thousands)
wrelogoa.jpg

Quarter-to-Date ComparisonQ2 2021Q2 2020$ Change% Change% of Q2 2021 Total
Controllable (1)
$6,833 $6,638 $195 2.9 %49.1 %
Non-Controllable (2)
7,092 7,168 (76)(1.1)%50.9 %
Total same-store operating expenses$13,925 $13,806 $119 0.9 %100.0 %

Sequential ComparisonQ2 2021Q1 2021$ Change% Change% of Q2 2021 Total
Controllable$6,833 $6,671 $162 2.4 %49.1 %
Non-Controllable7,092 7,734 (642)(8.3)%50.9 %
Total same-store operating expenses$13,925 $14,405 $(480)(3.3)%100.0 %

Year-to-Date ComparisonYTD 2021YTD 2020$ Change% Change% of YTD 2021 Total
Controllable$13,504 $12,945 559 4.3 %47.7 %
Non-Controllable14,826 14,599 227 1.6 %52.3 %
Total same-store operating expenses$28,330 $27,544 $786 2.9 %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
wrelogoa.jpg

Average Occupancy - Same-Store Properties(1) (2)
Sector6/30/20213/31/202112/31/20209/30/20206/30/2020
Multifamily95.1 %94.3 %94.0 %94.3 %94.5 %
Average Occupancy - All Properties (2)
Sector6/30/20213/31/202112/31/20209/30/20206/30/2020
Multifamily (3)
95.1 %94.3 %94.0 %94.3 %94.5 %
Office (4)
83.8 %84.2 %86.0 %86.5 %86.8 %
Other (4)
88.8 %87.4 %86.6 %85.8 %87.2 %
Overall Portfolio (3)
91.5 %91.1 %91.1 %91.3 %91.5 %
______________________________
(1) Non same-store properties were:
          Sold properties:
                  Office - John Marshall II, Monument II and 1227 25th Street
          Discontinued operations:
Office - 1901 Pennsylvania Avenue, 515 King Street, 1220 19th Street, 1600 Wilson Boulevard, Silverline Center, Courthouse Square, 2000 M Street, 1140 Connecticut Avenue, Army Navy Club, 1775 Eye Street, Fairgate at Ballston and Arlington Tower
Retail - Takoma Park, Westminster, Concord Centre, Chevy Chase Metro Plaza, 800 S. Washington Street, Randolph Shopping Center, Montrose Shopping Center and Spring Valley Village.
(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) Average occupancy excludes the addition of the total rentable units at Trove, which began to lease-up in the first quarter of 2020. Including Trove, multifamily average occupancy was 92.5%, 91.1%, 90.2%, 89.9% and 89.5% and overall portfolio average occupancy was 90.2%, 89.4%, 89.2%, 89.1%, and 89.0% for each of the quarters ended June 30, 2021, March 31, 2021, December 31 2020, September 30, 2020 and June 30, 2020, respectively.
(4) Includes properties classified as Discontinued operations.
23


Same-Store Portfolio and Overall Ending Occupancy Levels by Sector
wrelogoa.jpg

Ending Occupancy - Same-Store Properties (1) (2)
Sector6/30/202103/31/202112/31/20209/30/20206/30/2020
Multifamily95.2 %94.9 %94.3 %94.6 %94.3 %
Ending Occupancy - All Properties (2)
Sector6/30/202103/31/202112/31/20209/30/20206/30/2020
Multifamily (3)
95.2 %94.9 %94.3 %94.6 %94.3 %
Office (4)
83.9 %83.3 %85.7 %86.6 %86.8 %
Other (4)
89.3 %87.4 %86.5 %86.8 %84.0 %
Overall Portfolio (3)
91.6 %90.9 %91.4 %91.6 %91.7 %
______________________________
(1) Non same-store properties were:
Development:
                  Multifamily - Trove
          Sold properties:
                  Office - John Marshall II, Monument II and 1227 25th Street
          Discontinued operations:
Office - 1901 Pennsylvania Avenue, 515 King Street, 1220 19th Street, 1600 Wilson Boulevard, Silverline Center, Courthouse Square, 2000 M Street, 1140 Connecticut Avenue, Army Navy Club, 1775 Eye Street, Fairgate at Ballston and Arlington Tower
Retail - Takoma Park, Westminster, Concord Centre, Chevy Chase Metro Plaza, 800 S. Washington Street, Randolph Shopping Center, Montrose Shopping Center and Spring Valley Village.
(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) Ending occupancy excludes the addition of the total rentable units at Trove, which began to lease-up in the first quarter of 2020. Including Trove, multifamily ending occupancy was 93.8%, 92.0%, 90.9%, 90.5% and 89.8% and overall portfolio ending occupancy was 91.0%, 89.5%, 89.7%, 89.5% and 89.4% as of June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.
(4) Includes properties classified as Discontinued operations.
24


Commercial Leasing Summary - New Leases
wrelogoa.jpg
2nd Quarter 20211st Quarter 20214th Quarter 20203rd Quarter 20202nd Quarter 2020
Gross Leasing Square Footage
      Office Buildings23,81029,0659,43719,15919,795
      Retail Centers2,1527,8245,900420
Total25,96229,06517,26125,05920,215
Weighted Average Term (years)
      Office Buildings5.46.74.55.38.3
      Retail Centers7.45.512.15.0
Total5.56.74.96.98.3
Weighted Average Free Rent Period (months)
      Office Buildings8.23.93.56.27.3
      Retail Centers4.91.85.2