Washington Real Estate Investment Trust (WRE) SEC Filing 10-K Annual report for the fiscal year ending Wednesday, December 31, 2008

Net income for the year ending December 31, 2008 was $0.67 per diluted share, compared to $1.34 per diluted share in 2007. Net income for the quarter ending December 31, 2008 was $0.14 per diluted share, compared to $0.18 per diluted share in the same period one year ago. Included in the 2008 full year net income per share was a $0.17 non-recurring charge for the extinguishment of $60 million of 10-year Mandatory Par Put Remarketed Securities (“MOPPRS”) and a $0.07 gain due to the repurchase of convertible debt. Additionally, 2008 full year net income per share declined $0.20 from 2007 due to higher gains from the sale of real estate in 2007.

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Funds from Operations (FFO)⁽¹⁾ for the year ending December 31, 2008 was $2.12 per diluted share compared to $2.31 per diluted share the prior year. FFO for the quarter ending December 31, 2008 was $0.59 per diluted share, compared to $0.59 per diluted share in the same period one year ago. Included in the 2008 full-year FFO per share was a $0.17 non-recurring charge for the extinguishment of $60 million of 10-year Mandatory Par Put Remarketed Securities (“MOPPRS”) and a $0.07 gain due to the repurchase of convertible debt.

Office properties’ core NOI for the fourth quarter decreased 3.9% compared to the same period one year ago. Rental rate growth for the office sector was 2.3% while core economic occupancy decreased 190 basis points to 93.5%. Sequentially, core economic occupancy increased from 92.5% in the third quarter of 2008.

Retail properties’ core NOI for the fourth quarter decreased 17.3% compared to the same period one year ago due in a large part to write-offs associated with the bankruptcy of Circuit City. Rental rate growth was 3.5% while core economic occupancy decreased 130 basis points to 94.8%. Sequentially, core economic occupancy increased from 94.4% in the third quarter of 2008.

Industrial properties’ core NOI for the fourth quarter decreased 8.5% compared to the same period one year ago. Rental rate growth was 2.7% while core economic occupancy decreased 340 basis points to 92.3%. Sequentially, core economic occupancy declined from 92.9% in the third quarter of 2008.

Medical office properties’ core NOI for the fourth quarter decreased 1.8% compared to the same period one year ago. Rental rate growth was 2.0% while core economic occupancy decreased 210 basis points to 96.0%. Sequentially, core economic occupancy remained relatively flat compared to 95.8% in the third quarter of 2008.