Washington Real Estate Investment Trust Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Nature of Business (Tables)

Nature of Business (Tables)

12 Months Ended

Dec. 31, 2014

During the three years ended December 31, 2014, we sold the following properties (in thousands):



Disposition Date	Property	Type	Gain on Sale
January 21, 2014	Medical Office Portfolio Transactions III & IV ⁽¹⁾	Medical Office	$	105,985
May 2, 2014	5740 Columbia Road	Retail	570
		Total 2014	$	106,555

March 19, 2013	Atrium Building	Office	$	3,195
November 2013	Medical Office Portfolio Transactions I & II ⁽²⁾	Medical Office / Office	18,949
		Total 2013	$	22,144

August 31, 2012	1700 Research Boulevard	Office	$	3,724
December 20, 2012	Plumtree Medical Center	Medical Office	1,400
		Total 2012	$	5,124

⁽¹⁾ Woodburn Medical Park I and II and Prosperity Medical Center I, II and III.

⁽²⁾ 2440 M Street, 15001 Shady Grove Road, 15505 Shady Grove Road, 19500 at Riverside Park (formerly Lansdowne Medical Office Building), 9707 Medical Center Drive, CentreMed I and II, 8301 Arlington Boulevard, Sterling Medical Office Building, Shady Grove Medical Village II, Alexandria Professional Center, Ashburn Farm Office Park I, Ashburn Farm Office Park II, Ashburn Farm Office Park III, Woodholme Medical Office Building, two office properties (6565 Arlington Boulevard and Woodholme Center) and undeveloped land at 4661 Kenmore Avenue.

Income from properties classified as discontinued operations for the three years ended December 31, 2014 was as follows (in thousands):



	Year Ending December 31,
	2014			2013			2012
Revenues	$	892		$	45,791		$	54,344
Property expenses	(346		)	(17,039		)	(18,273		)
Real estate impairment	—			—			(2,097		)
Depreciation and amortization	—			(12,161		)	(18,827		)
Interest expense	—			(1,196		)	(4,331		)
	$	546		$	15,395		$	10,816

The cost of our real estate portfolio under development or held for future development as of December 31, 2014 and 2013 is as follows (in thousands):



	December 31,
	2014		2013
Office	$	36,379	$	12,175
Retail	500		495
Multifamily	39,356		48,645
	$	76,235	$	61,315

Income from properties classified as discontinued operations by property for the three years ended December 31, 2014 was as follows (in thousands):



		Year Ending December 31,
Property	Segment	2014		2013		2012
1700 Research Boulevard	Office	$	—	$	—	$	225
Plumtree Medical Center	Medical Office	—		—		197
Atrium Building	Office	—		185		1,063
Medical Office Portfolio	Medical/Office	546		15,210		9,331
		$	546	$	15,395	$	10,816

We sold or classified as held for sale the following properties during the three years ended December 31, 2014:



Property	Type	Rentable Square Feet (unaudited)	Contract Sales Price (in thousands)		Gain on Sale (in thousands)
Medical Office Portfolio Transactions III & IV ⁽¹⁾	Medical Office	427,000	193,561		$	105,985
5740 Columbia Road ⁽²⁾	Retail	3,000	1,600		570
	Total 2014	430,000	$	195,161	$	106,555

Atrium Building	Office	79,000	$	15,750	$	3,195
Medical Office Portfolio Transactions I & II	Medical Office / Office	1,093,000	307,189		18,949
	Total 2013	1,172,000	$	322,939	$	22,144

1700 Research Boulevard	Office	101,000	$	14,250	$	3,724
Plumtree Medical Center	Medical Office	33,000	8,750		1,400
	Total 2012	134,000	$	23,000	$	5,124

⁽¹⁾These properties were initially classified as held for sale during 2013.

⁽²⁾ The property is classified as continuing operations in accordance with ASU No. 2014-08 (see note 2). All other listed properties are classified as discontinued operations in accordance with ASC 205-10, "Discontinued Operations."

Taxable Percentage of Dividends Paid

The following is a breakdown of the taxable percentage of our dividends for these years ended December 31, 2014, 2013 and 2012, (unaudited):



	2014		2013		2012
Ordinary income	40	%	62	%	72	%
Return of capital	52	%	38	%	26	%
Qualified dividends	—	%	—	%	—	%
Unrecaptured Section 1250 gain	8	%	—	%	2	%
Capital gain	—	%	—	%	—	%