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NET INCOME UP 5 PERCENT SECOND QUARTER AND 11 PERCENT FOR FIRST HALF; WRIT PAYS DIVIDEND AT NEW RATE

NET INCOME UP 5 PERCENT SECOND QUARTER AND 11 PERCENT FOR FIRST HALF;
 WRIT PAYS DIVIDEND AT NEW RATE
 BETHESDA, Md., Aug. 17 /PRNewswire/ -- The Washington Real Estate Investment Trust (WRIT) (AMEX: WRE) reported net income of $4,766,036 for the second quarter of 1992, an increase of 5 percent compared to $4,559,442 for the same period 1991. Net income for the first six months of 1992 was $9,667,942, an increase of 11 percent over the $8,688,617 for the first six months of 1991.
 The trustees voted a dividend at the new quarterly 21 cents per share rate announced with the May 11, 1992, 3-for-2 stock split. This is the 124th consecutive dividend at equal to or increasing rates, and 1992 is the 22nd consecutive year of dividend increases. The third quarter dividend will be paid Sept. 30, 1992, to shareholders of record on Sept. 16, 1992.
 The average occupancy rate for the second quarter of 1992 was 94 percent, excluding only the office building acquired in October 1990 at 60 percent occupancy which has improved to 77 percent as of June 30, 1992.
 The Second Quarter: Theories of Leverage vs. Cash Equity ...
 Conservatism vs. the Short-Term Fix ...
 Cash Costing 5 Percent Invested at 11 Percent
 2,497,000 Shares Sold for $42,500,000: WRIT sold 2,497,000 shares including the underwriters over-allotment option (the Green Shoe), for $17.00 per share in its largest offering. The total gross proceeds were $42,500,000. In the cash-starved world of real estate investment, WRIT is unique in being able to raise new cash equity at a 5 percent cost.
 Ballston Financial Center Purchased for $6.3 Million From RTC: On June 24, 1992, WRIT also purchased from the Resolution Trust Corporation for $6,300,000 the Arlington Financial Center, an office building at 4420 N. Fairfax Drive in Arlington, Va. This property is in the heart of the newly redeveloped Ballston area, one block from the Ballston Metro stop. The 57,000 square foot five-story office building is 98 percent leased, including the U.S. government (81 percent), Mount Vernon/Weichert Realty (9 percent) and Household Bank, FSB, a subsidiary of Household International, Inc. (8 percent). WRIT's yield is 11 percent.
 515 King Street in Old Town Alexandria, Va., Purchased for $8 Million Cash: Strategically located across from the Alexandria courthouse and a block from City Hall with its lovely Market Square, Crestar Bank's major banking facility in Northern Virginia is the prime tenant, occupying 60 percent of the 78,600 square feet; 93 percent is leased. WRIT's projected yield is 11 percent.
 Money Costing 5 Percent Buys 11 Percent Yields: "These acquisitions illustrate our philosophy of purchasing prime properties with good growth prospects," said B. Franklin Kahn, president of WRIT. "By paying all cash, we were able to purchase superbly located office buildings at far lower prices and higher yields than available a couple of years ago. Hence the 5 percent new cash has been used to purchase 11 percent yields on new properties. This yield spread is at least double that of most of our competition ... and we end up with no mortgages to choke us."
 After the underwriting and the purchase of these two new office buildings, WRIT has $58 million cash for further property purchases. WRIT currently has under consideration or feasibility study several other properties in the metropolitan Washington area.
 This contrarian, conservative philosophy serves WRIT well. The track record of growth has been reflected in the increased price of WRIT shares and stock splits that total more than 10-for-1 over the last 11 years:
 -- May 1992 3-for-2
 -- December 1988 3-for-2
 -- July 1985 3-for-2
 -- March 1981 3-for-1
 WRIT Debt, As a Percentage of Assets, Reduced from 87 Percent to 1 Percent: While this 25-year record has been compounding, WRIT has steadily paid down its debt from 87 percent of its assets to 1 percent. When the trust was a new, poor organization, it needed to borrow in order to purchase real estate investments. However, even then the trust utilized only long-term debt with fixed interest rates, thereby avoiding the leverage horrors of the early 1970s recession. The chart below demonstrates the constant reduction of debt for 25 years.
 Debt, As a Percentage of Assets
 Dec. 31, 1966 87 percent
 Dec. 31, 1971 61 percent
 Dec. 31, 1976 47 percent
 Dec. 31, 1981 37 percent
 Dec. 31, 1986 17 percent
 Dec. 31, 1991 8 percent
 June 30, 1992 1 percent
 Can equity grow both conservatively and quickly? WRIT's second quarter hopefully proves that long-term solid growth is enhanced by conservatism, not by debt or risk. The trust's 25-year policy of buying only prime properties in great locations, never marginal properties and paying off the debt may be an anathema in America in our generation.
 WASHINGTON REAL ESTATE INVESTMENT TRUST
 Financial Highlights
 (Unaudited)
 Three Months Ended June 30, 1992 1991
 Real estate revenue $ 8,186,741 $ 8,338,312
 Real estate taxes and operating
 expenses other than depreciation (2,487,957) (2,483,127)
 Income from real estate before
 depreciation 5,698,784 5,855,185
 General and administrative expense
 and interest expense (752,669) (992,482)
 Interest income 648,237 521,965
 Income before depreciation 5,594,352 5,384,668
 Depreciation (828,316) (825,226)
 Net income $ 4,766,036 $ 4,559,442
 Net income per share(C) $0.19 $0.19
 Cash flow from operations(B) $ 5,594,352 $ 5,384,668
 Cash flow from operations per share(C) $0.22 $0.22
 Cash dividends paid $ 5,375,927 $ 4,946,973
 Cash dividends paid per share(C) $0.21 $0.19
 Average number of shares
 outstanding(C) 25,623,611 24,393,564
 Six Months Ended June 30, 1992 1991
 Real estate revenue $16,665,143 $16,339,515
 Real estate taxes and operating
 expenses other than depreciation (4,977,343) (4,947,447)
 Income from real estate before
 depreciation 11,687,800 11,392,068
 General and administrative expense
 and interest expense (1,742,808) (1,901,630)
 Interest income 1,385,746 836,861
 Income before depreciation 11,330,738 10,327,299
 Depreciation (1,662,796) (1,638,682)
 Net income $ 9,667,942 $ 8,688,617
 Net income per share(C) $0.38 $0.36
 Cash flow from operations(B) $11,330,738 $10,327,299
 Cash flow from opeations per share(C) $0.44 $0.43
 Cash dividends paid $10,665,509 $ 9,437,197
 Cash dividends paid per share(C) $0.42 $0.39
 Average number of shares
 outstanding(C) 25,609,051 23,812,658
 As of June 30, 1992 1991
 Cash and temporary investments $64,879,458 $43,135,306
 Real estate assets, at cost 125,345,338 115,499,518
 Total assets, at cost 194,413,500 162,856,854
 Mortgage notes payable 2,218,889 12,038,503
 Shareholders' equity 158,645,664 120,446,015
 Shareholders' equity, at cost(A) 187,642,329 146,495,392
 (A) At cost means adding back accumulated depreciation.
 (B) Cash flow from operations is net income plus depreciation.
 (C) Adjusted for 3-for-2 stock split May 29, 1992
 -0- 8/17/92
 /CONTACT: Howard E. Cochran, vice president-finance, Washington Real Estate Investment Trust, 301-652-4300; fax, 301-652-4303/
 (WRE) CO: Washington Real Estate Investment Trust ST: Maryland IN: FIN SU: ERN DIV


DC -- DC010 -- 0521 08/17/92 12:32 EDT
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