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WRIT BUYS MONTGOMERY VILLAGE SHOPPING CENTER FOR $20.5 MILLION

 BETHESDA, Md., Dec. 30 /PRNewswire/ -- The Washington Real Estate Investment Trust (WRIT) (AMEX: WRE) purchased the Montgomery Village Center, a community shopping center which dominates its trade area. Montgomery Village, a pleasant New Town model planned community of 38,000 residents, is nationally acclaimed and the winner of many prestigious architectural awards. The 2,500 acre park-like setting of lakes, magnificent trees and flowering shrubbery with multi-laned, tree-lined boulevards showcase the Montgomery Village Center. The shopping center is in the vibrant, expansion segment of the I-270 corridor of Metro-Washington. Average household income is $61,600 per year with 89 percent of all households earning over $25,000 per year.
 Of the 200,000 square feet, 170,000 square feet are prime retail stores, 98 percent leased, including anchors Giant Food, Peoples Drug, Evans, So-Fro Fabrics and a wide selection of other neighborhood convenience stores and services. The adjacent Village Quarters professional office townhouses/lofts have 30,000 square feet.
 10 PERCENT FROM 5 PERCENT -- WRIT DOUBLES BOTH ITS YIELD
 AND THE AVERAGE YIELD SPREAD
 The present cash-starved market allowed WRIT to purchase the Montgomery Village Center for $20.5 million cash with a projected strong, growing yield of 10 percent. This cash equity was raised in 1992 with a cost (Dividend Yield) to WRIT of less than 5 percent (see newsletter). Because of WRIT's conservative strength and growth record, the trust is able to raise equity cash at the lowest cost in the REIT industry. Thus WRIT's investment yield is double the dividend yield. In addition, this "yield spread" of 5-1/2 percent is double that of most of WRIT's competition. WRIT still has $30 million available after the purchase for additional property acquisitions.
 Instead of selling $21 million of its U.S. Agency and other very prime investment paper now yielding a weighted average of 6 percent, WRIT borrowed $21 million with a 4.6 percent interest rate using the same investments as collateral. This creates an estimated $294,000 additional annual profit.
 Although unusual for WRIT, this taking of debt is really a win-win-win situation. There is almost no risk because: (1) WRIT can sell the government agency securities, its collateral, at any time and pay off the debt; (2) if market interest rates increase, WRIT can sell the securities before any loss eats up too much of the $294,000 annual gain; and (3) if market interest rates drop, the profits just keep getting larger and larger.


NET INCOME UP 12 PERCENT; OFFICE BUILDINGS HEROIC; SEE NEWSLETTER
 Since the Montgomery Village purchase could not be publicly released until after the Dec. 30 settlement, WRIT's newsletter, which had to be printed earlier, could not include the late, breaking news.
 Therefore, the other news of net income increasing 12 percent, greatly improved office building results, etc. in the quarterly newsletter should also be read herewith as part of this press release, and vice versa.
 -0- 12/30/92
 /NOTE: Copies of the newsletter are available./
 /CONTACT: Howard E. Cochran, vice president-finance, WRIT, 301-652-4300 or, fax, 301-652-4303/
 (WRE)


CO: Washington Real Estate Investment Trust ST: Maryland IN: FIN SU:

TW -- DC003 -- 0554 12/30/92 10:20 EST
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Date:Dec 30, 1992
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