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WRIT NET INCOME UP 33 PERCENT; BETHESDA HEADQUARTERS BUILDING IS SOLD FOR QUADRUPLE ITS COST

 BETHESDA, Md., Aug. 12 /PRNewswire/ -- The Washington Real Estate Investment Trust (WRIT) (AMEX: WRE) reported net income of $6,322,109 for the second quarter of 1993, an increase of 33 percent compared with $4,766,036 for the same period of 1992. Quarterly net income per share increased from 19 cents to 22 cents. The 1993 second quarter includes a gain of $741,217 from the sale of WRIT's Bethesda headquarters building June 28, 1993.
 Real estate revenue of $9,713,873 for the second quarter of 1993 increased 19 percent over the second quarter of 1992. The second quarter 1993 funds from operations before the gain on the sale of property was $6,488,358, or 16 percent above the second quarter of 1992. The increase in revenue, funds from operations and operating net income was primarily attributable to two office buildings and one shopping center purchased in 1992.
 The new properties which added to this growth are:
 -- The 57,000-square-foot, five-story Arlington Financial Center at 4420 N. Fairfax Drive in the Ballston area of Arlington, Va., which was 98 percent leased and yielding 11 percent when purchased last summer and is now 100 percent leased and yielding 12 percent.
 -- The 78,600-square-foot, five story building at 515 King St. in the Old Town section of Alexandria, Va., which was 94 percent leased and yielding 11 percent when purchased last summer; and is now 98 percent leased and yielding 14 percent, also due in part to changes in the garage parking operation.
 -- The 170,000-square-foot Montgomery Village Shopping Center in Gaithersburg, Md., with the Village Quarters, 30,000-square-feet of office condominium units which was purchased in December 1992. WRIT "decondominimized" the Village Quarters, saving real estate taxes and other expenses, and has leased 13 of the 14 vacant units. The shopping center and Village Quarters had a combined occupancy of 93 percent and yielded 10 percent when purchased last winter. Today it is 98 percent leased and is yielding 11 percent.
 While there continues to be an oversupply of office space in the Washington metropolitan area, WRIT is somewhat unique in attaining high occupancy levels in its office buildings. WRIT's hands-on management and leasing team deserve the credit.
 DIVIDEND DECLARED
 WRIT's third quarter 1993 dividend of 22 cents will paid on Sept. 30, 1993, to shareholders of record on Sept. 16, 1993. This is the 128th consecutive dividend at equal to or increasing rates. Over the 23-year period since 1970, including 1993, dividends have increased 27 times by a multiple of 11 times after adjusting for stock splits.
 WHY WRIT'S SALE OF ITS BETHESDA HEADQUARTERS BUILDING
 FOR FOUR AND ONE-HALF TIMES ORIGINAL COST IS
 `UNCONVENTIONAL,' BUT TYPICAL OF WRIT
 WRIT sold its headquarters building at 4936 Fairmont Ave., Bethesda, for $1,050,000 ... over four and one-half times its cost. The 14,000- square-foot building, when purchased for $228,000, was leased as a training center to General Electric and then to National Cash Register. In 1981 the Trust moved its efficient, but inexpensive, headquarters to the second floor walkup; CSN Management Corporation moved to the previously unused basement; and the more desirable and expensive first floor was rented to the Bank of Bethesda as an operations center, and later for retail uses. After adjusting for capital improvements, depreciation and selling expenses, WRIT's gain on the sale is just under 3 cents per share, which will be part of their 1993 dividend.
 Typical: Every time WRIT has ever disposed of a property in its entire 33-year history, the Trust has doubled, trebled, quadrupled or quintupled its investment. The sale price of 4936 Fairmont fits neatly among those multiples at quadruple its cost; and highlights WRIT's unconventional, conservative strategy.
 "Unconventional": Real estate investment companies that have a bad year of operations frequently hide losses by selling a very profitable investment at maximum gains. Conversely, WRIT has 27 consecutive years of increased operating profits based on the discipline of buying and holding properties with future growth potential ... then constantly developing that growth potential with WRIT's low cost equity capital. Again, conversely, WRIT sells only properties that have run out of growth potential. Thus a restaurant owner bought 4936 Fairmont Ave., because it is in Bethesda's opulent restaurant row at a price reflecting that a restaurant is the "highest and best use" ... far higher than "plain vanilla" offices, which are in over supply. So the Trust disposed of its no-growth property at quadruple its investment ... for unconventional reasons. In the 1970s WRIT disposed of rent controlled apartments to condominium convertors under similar circumstances with similar results.
 WRIT'S SYMBOLIC MOVE INTO NEW MAGNIFICENT
 OFFICES AT 10400 CONNECTICUT AVE. INCREASES
 THE VALUE OF CONVERTED GARAGE BY MULTIPLE OF TEN
 Effective Aug. 16, 1993, WRIT and the CSN Management Corporation will relocate their offices to another of WRIT's office buildings, 10400 Connecticut Ave., Kensington, Md., which will be named THE WRIT BUILDING. The Trust will occupy the 10,000-square-foot former garage which had rented for $10,000 per year, or $1 per square foot per year. When the Trust is finished its remodeling, WRIT will not only have created attractive and efficient office space with more than $120,000 of annual rental value, but will also save $21,000 a year in parking fees now being paid to Montgomery County.
 Creating extremely attractive and efficient offices in basements is not original. Old-fashioned development geniuses Morris Cafritz and Gustave Ring in the 1940s and 1950s said, "Let tenants pay higher rents for the upper floors. We will convert wasted, cheap space into our own handsome and efficient offices."
 The Trust's Bethesda "plain vanilla" second floor walkup (no elevator) masked an extremely efficient, small "hands-on" staff that joked about living in "genteel simplicity." Ultimately, efficiency dictated that the present 5,000-square-foot WRIT second floor walkup and the 3,750-square-foot basement walkdown management operation be merged into 10,000-square-feet on one floor with its own gym, exercise facility and private controlled parking ... especially when offered quadruple its cost for the old building.
 `SO BEGINS ANOTHER WRIT CYCLE OF UNORTHODOX,
 CONSERVATIVE STRATEGY ... RECYCLING
 INVESTMENT PROFITS INTO NEW GROWTH POTENTIAL ...
 CONVERTING A FORMER GARAGE INTO NEW, HANDSOME,
 EFFICIENT OFFICES AND INCREASING THE RENTAL VALUE
 BY A MULTIPLE OF TEN ... REALIZATION OF GROWTH
 POTENTIAL INCREASES PROFITS AND VALUE ... AB INITIO (REPEAT
 CYCLE FROM THE BEGINNING) ... AD INFINITUM ...
 (HOPEFULLY KEEP ON REPEATING)'
 WASHINGTON REAL ESTATE INVESTMENT TRUST
 FINANCIAL HIGHLIGHTS
 (Unaudited)
 Three Months Ended June 30,
 1993 1992
 Real estate rental revenue $9,713,873 $8,186,741
 Operating expenses
 and real estate taxes (2,838,278) (2,487,957)
 Depreciation (907,466) (828,316)
 Income from real estate 5,968,129 4,870,468
 General and administrative
 expense and interest expense (731,196) (752,669)
 Investment income 343,959 648,237
 Income before gain on sale
 of property 5,580,892 4,766,036
 Gain on sale of property 741,217 --
 Net income $6,322,109 $4,766,036
 Net income per share $ 0.22(A) $ 0.19
 Net income $6,322,109 $4,766,036
 Depreciation 907,466 828,316
 Gain on sale of property (741,217) --
 Funds from operations $6,488,358 $5,594,352
 Cash dividends paid $6,209,701 $5,375,927
 Cash dividends paid per share $ 0.22 $ 0.21
 Average number of shares
 outstanding 28,224,485(B) 25,623,611(B)
 WASHINGTON REAL ESTATE INVESTMENT TRUST
 FINANCIAL HIGHLIGHTS
 (Unaudited)
 Six Months Ended June 30,
 1993 1992
 Real estate rental revenue $19,471,978 $16,665,143
 Operating expenses
 and real estate taxes (5,737,693) (4,977,343)
 Depreciation (1,806,408) (1,662,796)
 Income from real estate 11,927,877 10,025,004
 General and administrative
 expense and interest expense (1,440,907) (1,742,808)
 Investment income 864,790 1,385,746
 Income before gain on sale
 of property 11,351,760 9,667,942
 Gain on sale of property 741,217 --
 Net income $12,092,977 $ 9,667,942
 Net income per share $ 0.43(A) $ 0.38
 Net income $12,092,977 $ 9,667,942
 Depreciation 1,806,408 1,662,796
 Gain on sale of property (741,217) --
 Funds from operations $13,158,168 $11,330,738
 Cash dividends paid $12,419,286 $10,665,509
 Cash dividends paid per share $ 0.44 $ 0.42
 Average number of shares
 outstanding 28,219,973(B) 25,609,051
 AS OF JUNE 30
 Cash and marketable securities $32,128,760 $64,879,458
 Real estate assets, at cost(C) 157,689,298 125,345,338
 Total assets, at cost(C) 195,674,193 194,413,500
 Mortgage notes payable -- 2,218,889
 Shareholders' equity 158,879,108 158,645,664
 Shareholders' equity, at cost(C) 190,715,287 187,642,329
 (A) Includes $0.0263 per share gain on sale of property.
 (B) Additional 2,497,000 shares sold to public June 23, 1992.
 (C) At cost means adding back accumulated depreciation.
 -0- 8/12/93
 /CONTACT: Howard E. Cochran, vice president-finance, Washington Real Estate Investment Trust, 301-652-4300 or, fax, 301-652-4303/
 (WRE)


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

DC-IH -- DC008 -- 2125 08/12/93 12:31 EDT
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Date:Aug 12, 1993
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