What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-02-18 compared with 2021-02-16 · 95 added, 155 removed, 54 unchanged (82% of the section changed)

WashREIT Overview

Washington Real Estate Investment Trust (“WashREIT”) is a self-administered equity real estate investment trust (“REIT”), successor to a trust organized in 1960.

Our business consists of the ownership and operation of income producing real estate properties in the greater Washington metro region.

We own a portfolio of multifamily and commercial (office and retail) properties.

Our strategy is to generate returns and maximize shareholder value through proactive asset management and prudent capital allocation decisions.

Consistent with this strategy, we invest in additional income producing properties through acquisitions, development and redevelopment.

We invest in properties where we believe we will be able to improve the operating results and increase the value of the property.

We focus on properties in the Washington metro region, near major transportation nodes and in areas with strong employment drivers and superior growth demographics.

We will seek to continue to upgrade our portfolio as opportunities arise, funding development and acquisitions with a combination of cash, equity, debt and proceeds from property sales.

While we have historically focused most of our investments in the greater Washington metro region, in order to maximize acquisition opportunities we also may consider opportunities to replicate our strategy in other geographic markets which meet the criteria described above.

Our Regional Economy and Real Estate Markets

The Washington metro region continues to slowly recover from the economic shock resulting from the COVID-19 pandemic.

Positive monthly job growth through November 2020 brought back much of the Washington metro region’s jobs that were initially lost in the spring.

However, the 12-month job growth figure remains sharply negative at approximately 179,700 net job losses, according to Delta Associates / Transwestern Commercial Services (“Delta”), a national full-service real estate firm that provides market research and evaluation services for commercial property.

Payroll Job Growth

Major Metro Areas

12 Months Ending November 2020

______________________________

Bureau of Labor Statistics;

The unemployment rate in the Washington metro region was 5.8% in November 2020, a 300-basis point increase over November 2019, but 400 basis points less than the pandemic peak of 9.8% in April, according to Delta.

The Washington metro region retains one of the lowest unemployment rates in the country and is well under the national unemployment rate of 6.4%, according to Delta.

Unemployment Rate

Major Metro Areas

November 2020 vs.

November 2019

______________________________

Bureau of Labor Statistics;

Certain market statistics and information from several third-party providers for the Washington metro region are set forth below:

The multifamily real estate market had lower effective rents and occupancy rates in 2020, reflecting disruption from the COVID-19 pandemic, according to statistics from RealPage Market Analytics, a commercial real estate management software company that provides market research:

Year-Over-Year Year-Over-Year

Apartment Effective Rent Change Apartment Occupancy

Washington Metro 2020 vs.

2019 Washington Metro 2020 vs.

______________________________

RealPage Market Analytics;

Demand in the Washington metro region has continued to fall since the pandemic began, a trend also seen among some of the nation’s gateway markets (i.e., San Francisco, Los Angeles, New York City and Boston).

The development pipeline for the Washington metro region remains elevated and is expected to suppress occupancy and rental rates in 2021 as approximately 14,800 new deliveries are expected while approximately 32,000 units are under construction.

Class A (1) properties are expected to struggle the most as new lease-ups should create significant competition throughout 2021.

Class B (2) properties, especially properties located in suburban areas, have outperformed Class A properties during the COVID-19 pandemic and are expected to continue to outperform Class A units as no new supply of Class B units are expected to be added to the market in 2021.

______________________________

(1) Defined by Delta as product generally built in 1995 or later and offering a separate clubhouse, decorated model units, two bedroom/ two bath units, and a large community amenity package most often including a fitness center and swimming pool.

(2) Defined by Delta as product that is well maintained, older, generally built in the 1960’s or 1970’s, and which does not offer a separate clubhouse nor decorated model unit nor two bedroom/two bathroom floor plans.

Class B communities typically offer limited project amenities.

Washington Metro Region 2020 2019

Average asking rent per square foot $ 43.72 $ 43.30

Total vacancy rate at year end 18.7 % 16.1 %

Net absorption (in millions of square feet) (1)

Office space under construction at year end (in millions of square feet) 7.0 9.8

Washington Real Estate Investment Trust (“WashREIT”) is a self-administered equity real estate investment trust (“REIT”).

We own apartment communities in the greater Washington, DC metro and Southeast regions.

While we previously owned a combination of commercial and residential assets, we disposed of all but one of our commercial assets (a 300,000 square foot office building in Washington, DC) in 2021.

These commercial assets are classified as discontinued operations as of December 31, 2021.

Our focus is to generate returns and maximize shareholder value by providing quality, affordably priced housing to what we believe to be an underserved middle-income market.

Our apartment communities fall within the following strategies among broader asset classes, as determined by a variety of factors, including the age of our buildings, rent growth drivers and rent relative to the market:

– Class A communities are recently developed and command rental rates well above market median rents.

– Class A- communities have been developed within the past twenty years and feature operational improvements and unit upgrades and command rents at or above median market rents.

– Class B Value-Add communities are over twenty years old but feature operational improvements and strong potential for unit renovations.

These communities command average rental rates below median market rents for units that have not been renovated.

– Class B communities are over twenty years old, feature operational improvements and command average rental rates below median market rents.

Near-term rent growth is driven by operational improvements and market rent growth without unit renovations.

These communities can become Class B Value-Add depending on future market rents and renovation opportunities.

These strategies enable us to provide the best combination of value, quality and resident experience in our apartment communities.

Our Target Regional Real Estate Markets (1)

While we have historically focused our investments in the greater Washington, DC metro region, we began expanding into the Southeast region in 2021.

Our targeted expansion markets include Atlanta, Georgia, Raleigh/Durham, North Carolina, and Charlotte, North Carolina.

In 2021, we acquired two apartment communities in the Atlanta metro region and expect to continue to invest in the Southeast region in the coming years.

Washington, DC metro region

In 2021, the apartment market in the Washington, DC metro region began its recovery from the pandemic-induced weakness observed in the prior year.

Overall market occupancy increased by 230 basis points year-over-year to 97.1% as of December 31, 2021.

In 2022, overall market occupancy for the Washington, DC metro region is expected to remain near 97%.

The higher occupancy in 2021 resulted in strong rent growth, with a 4.5% increase in the third quarter of 2021 from the third quarter of the prior year, the first year-over-year increase since the first quarter of 2020.

This was followed by an 8.8% annual increase in the fourth quarter of 2021 from the fourth quarter of the prior year.

All product classes saw growth in 2021, with Class B and Class A units registering 10.5% and 9.1% annual growth, respectively.

Rental rate growth is expected to continue in 2022 due to continued job growth and household formation that is expected to be partially offset by the delivery of new units.

Atlanta metro region

The apartment market in the Atlanta metro region was one of the best-performing markets in the country during 2021, as evidenced by the increase in occupancy and rent growth, with continued economic recovery and in-migration leading to strong

apartment demand.

Occupancy increased by 150 basis points year-over-year to 97.0% and Class A and Class B units recorded annual growth of 22.9% and 24.3%, respectively, compared to 2020.

Rental rate growth is expected to continue in 2022, although at levels below the record growth of 2021.

Job growth is expected to normalize to approximately 80,000 jobs in 2022, maintaining strong demand even as deliveries of new units in the Atlanta metro region increase over the limited deliveries in 2021 compared to previous years.

Raleigh/Durham and Charlotte metro regions

The apartment markets in the Raleigh/Durham and Charlotte metro regions have also been strong, with annual rent increases of 20.6% and 18.6%, respectively, compared to 2020.

While there is strong construction activity in these markets, economic growth and favorable in-migration patterns are expected to support continued rental rate growth in 2022.

Occupancy in the Raleigh/Durham market increased by 210 basis points to 97.2% compared to 2020, while occupancy in Charlotte increased 150 basis points to 97.1% compared to 2020.

Rent growth and occupancy are expected to continue in 2022, ranking in the upper quartile of major U.S.

______________________________

(1) Net absorption is defined as the change in occupied, standing inventory from one year to the next.

Jones Lang LaSalle ("JLL"), a commercial real estate services firm

The Washington metro region's office market performance in 2020 reflected the stress of the COVID-19 pandemic.

Total vacancy rose to 15.8% in Washington, D.C.

and 20.0% in Northern Virginia, according to JLL.

Direct asking rents remained relatively stable, as landlords increased focus on concessions to secure transactions.

Net effective rents declined by approximately 12.5% in Washington, D.C.

and 25% in Northern Virginia.

Leasing volume declined across the Washington metro region.

In Washington, D.C., overall leasing volume decreased by 49% compared to 2019, with renewals representing over two-thirds of the annual volume.

In Northern Virginia, despite a record year for government contract awards, leasing volume was down 32% year over year.

In the second half of 2020, renewals accounted for 68% of leasing volume in Northern Virginia as tenants continue to delay space decisions.

Construction has slowed in Washington, D.C.

as 2.7 million square feet is under construction, with 56% pre-leased.

In Northern Virginia, 677,000 of the 5 million square feet of space under construction is available for lease, with 64% of the space owner-built, 21% build to suit and 15% speculative development.

Historically, there has been a positive correlation between political alignment in the federal government and leasing in the Washington metro region for the office market.

For example, since 2000, aligned government correlated to 14.9 million square feet of absorption compared to periods of divided government, which resulted in only 5.7 million square feet of absorption in Washington, D.C.

JLL notes that elevated contract awards under a new presidential administration could provide a lift to the market over the intermediate term, particularly in Northern Virginia, but the actual effect remains to be seen.

In the near term, elevated vacancy and subdued leasing demand will drive office leasing performance metrics.

(1) The source of the data in this section is RealPage Market Analytics

Our Portfolio

As of December 31, 2020, we owned a diversified portfolio of 43 properties, totaling approximately 3.4 million square feet of commercial space and 7,059 residential units and land held for development.

These 43 properties consist of 22 multifamily properties, 13 office properties and 8 retail centers.

The percentage of total real estate rental revenue from continuing operations by property type for the three years ended December 31, 2020, 2019 and 2018, and the percent leased as of December 31, 2020, were as follows:

Percent Leased at

December 31, 2020 (1)

% of Total Real Estate Rental Revenue

As of December 31, 2021, we owned approximately 7,800 residential apartment homes in the Washington, DC metro and Southeast regions.

We also owned and operated approximately 300,000 square feet of commercial space in the Washington, DC metro region.

The percentage of total real estate rental revenue from continuing operations by property type for the three years ended December 31, 2021, and the average occupancy for the year ended December 31, 2021, were as follows:

Average Occupancy, year ended December 31, 2021 % of Total Real Estate Rental Revenue

2021 2020 2019

92% Multifamily 49 % 41 % 33 %

87% Office 45 % 53 % 61 %

93% Residential 89 % 82 % 71 %

89% Other 11 % 18 % 29 %

100 % 100 % 100 %

______________________________

(1) Calculated as the percentage of physical net rentable area leased, except for multifamily, which is calculated as the percentage of units leased.

The net rentable area leased for office and retail properties includes temporary lease agreements.

On a combined basis, our commercial portfolio (i.e., our office and retail properties, excluding properties classified as discontinued operations) was 87%, 93% and 93% leased at December 31, 2020, 2019 and 2018, respectively.

Total real estate rental revenue from continuing operations for each of the three years ended December 31, 2021, was $169.2 million, $176.0 million and $176.7 million, respectively.

During the three years ended December 31, 2020, we acquired eight multifamily properties and one office property, and substantially completed major construction activities at one retail redevelopment project and one multifamily development project.

During that same period, we sold eight retail properties and seven office properties.

During the three years ended December 31, 2021, we acquired eleven residential properties and substantially completed major construction activities at one residential development project.

During that same period, we sold sixteen retail properties and seventeen office properties.

See note 13 to the consolidated financial statements for further discussion of our operating results by segment.

The commercial lease expirations for the next ten years and thereafter are as follows:

# of Leases Square Feet Gross Annual Rent

(in thousands) Percentage of Total Gross Annual Rent

2021 49 205,717 $ 8,644 7 %

2022 46 375,218 18,663 15 %

2023 55 317,740 16,101 13 %

2024 52 257,568 14,188 11 %

2025 43 190,367 10,461 8 %

2026 28 183,715 11,163 9 %

2027 25 273,483 18,047 14 %

2028 16 78,455 4,989 4 %

2029 12 50,801 3,074 2 %

2030 13 120,279 7,660 6 %

Thereafter 16 175,724 12,621 11 %

Total 355 2,229,067 $ 125,611 100 %

2021 11 70,127 $ 1,368 9 %

2022 14 92,934 1,934 13 %

2023 18 65,858 1,630 11 %

2024 17 134,586 3,172 21 %

2025 11 79,292 1,476 10 %

2026 7 29,239 968 7 %

2027 5 47,611 1,109 7 %

2028 5 21,582 785 5 %

2029 5 18,133 913 6 %

2030 4 21,831 607 5 %

Thereafter 3 13,415 917 6 %

Total 100 594,608 $ 14,879 100 %

According to Delta, the professional/business services and government sectors constituted over 45% of payroll jobs in the Washington metro region at the end of 2020.

Due to our geographic concentration in the Washington metro region, a significant number of our tenants have historically been concentrated in the professional/business services and government sectors, although the exact number will vary from time to time.

As a result of this concentration, we are susceptible to business trends (both positive and negative) that affect the outlook for these sectors.

No single tenant accounted for more than 3% of real estate rental revenue in 2020 and no more than 5% in 2019 or 2018.

All federal government tenants in the aggregate accounted for less than 1% of our real estate rental revenue in 2020.

Our ten largest commercial tenants, in terms of real estate rental revenue for 2020, are as follows:

Atlantic Media, Inc.

Capital One, N.A.

EIG Management Company, LLC

Riley Financial, Inc.

Epstein, Becker & Green, P.C.

Hughes Hubbard & Reed LLP

Morgan Stanley Smith Barney Financing

Promontory Interfinancial Network, LLC

Graham Holdings Company

Raytheon BBN Technologies Corporation

No single tenant accounted for more than 5% of real estate rental revenue from continuing operations in any of the three years ended December 31, 2021.

We enter into arrangements from time to time by which various service providers conduct day-to-day property management and/or leasing activities at our properties.

Bozzuto Management Company ("Bozzuto") and Greystar Real Estate Partners ("Greystar") currently provide property management and leasing services at our multifamily properties.

Bozzuto Management Company ("Bozzuto") and Greystar Real Estate Partners ("Greystar") currently provide property management and leasing services at our residential properties.

Bozzuto and Greystar provide such services under individual property management agreements for each property, each of which is separately terminable by us or Bozzuto/Greystar, as applicable.

Although they vary by property, on average, the fees charged by the service provider under each agreement are approximately 3% of revenues at each property.

We expect to continue investing in additional income-producing properties through acquisitions, development and redevelopment and plan to allocate more capital to multifamily as an asset class over time than we currently allocate.

We invest in properties where we believe we will be able to improve the operating results and increase the value of the property.

Our properties typically compete for residents and tenants with other properties on the basis of location, quality and rental rates.

Our future plans are to perform day-to-day property management and leasing activities at our apartment communities internally rather than outsource those activities.

Under our current project plan, the insourcing process will begin during 2022 and is expected to be completed in 2023.

Investment Strategy

We expect to continue investing in additional income-producing apartment communities through acquisitions, development, redevelopment and possible joint ventures based on our research-focused investment strategy.

We are focused on investing in economies with diverse, innovative industries that we believe will benefit from outsized job creation, wage growth and in-migration in the years to come.

Our strategies focus on middle-income renters and mid-range rental price points who make up the largest share of apartment demand in each of our current and target markets.

We seek Class B communities priced below market midpoints and Class A- communities that do not compete with new supply to increase the opportunity to grow rents.

We target acquisition opportunities that offer more robust NOI growth prospects during the first three years of ownership than our

same-store portfolio.

Our research-focused approach enables us to craft optimal strategies to create value from assets, from renovation scoping to disposition timing.

We tailor our renovation programs to each submarket, target renter group and individual community to provide an improved yet affordable living experience while enhancing shareholder value.

We invest in communities where we believe we can enhance the operating results and increase the community’s value.

Our communities typically compete for residents and tenants with other communities based on location, quality and rental rates.

We make capital improvements to our properties on an ongoing basis for the purpose of maintaining and increasing their value and income.

However, we reduced our capital improvement spending for the year ended December 31, 2020 as a cost-saving measure due to the COVID-19 pandemic.

Major improvements and/or renovations to the properties during the three years ended December 31, 2021 are discussed in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, under the heading “Capital Improvements and Development Costs.”

3 unchanged sentences

Employees, Training and Development

On February 11, 2021, we had 112 employees including 48 persons engaged in property management functions and 64 persons engaged in corporate, financial, leasing, asset management and other functions.

All of our officers and substantially all of our employees live and work in or near the greater Washington metro region.

Our human capital resources objectives include identifying, recruiting, retaining, incentivizing and integrating our existing and new employees.

On February 16, 2022, we had 53 employees engaged in corporate, financial, asset management and other functions.

All of our officers, and substantially all of our employees live and work in or near the greater Washington, DC metro region.

Our human capital resources objectives include identifying, recruiting, retaining, incentivizing and integrating our new and existing employees.

At WashREIT, we place great value on employee growth through goals, feedback and professional and leadership development offerings.

Our leadership courses are internally developed and delivered through multi-session, cohort-based experiential learning environments and are offered to employees at multiple levels.

A certified executive leadership coach provides ongoing development support for leadership program participants and the employee population at large.

We financially support employees pursuing industry-specific training and certification programs.

Also, we encourage individuals to join professional organizations that offer technical, soft skill and leadership development workshops.

We also survey our employees regularly on a variety of topics including strategic initiatives, employee engagement, diversity, town hall meetings, community service, and others and incorporate the feedback to ensure our programs and initiatives are best serving employee needs.

Additionally, our equity and cash incentive plans are designed to attract, retain and reward our workforce through the granting

of stock-based and cash-based compensation awards, with the goal of motivating such individuals to perform to the best of their abilities and achieve our objectives, including increasing stockholder value.

Our human resources team provides ongoing training and development opportunities to all employees.

We financially support employees pursuing industry-specific training and certification programs and we encourage employees to join professional organizations that offer technical, soft skill and leadership development workshops.

We survey our employees regularly on a variety of topics including strategic initiatives, employee engagement, diversity, town hall meetings, community service and other topics and incorporate the feedback to ensure our programs and initiatives are best serving employee needs.

Additionally, our equity and cash incentive plans are designed to attract, retain and reward our workforce through the granting of stock-based and cash-based compensation awards, with the goal of motivating employees to perform to the best of their abilities and achieve our objectives, including increasing stockholder value.

Health, Safety and Well-being

We support our employees with a robust employee benefits program, including a flexible vacation policy, parental leave, 401(k) matching, tuition reimbursement, an Employee Assistance Program, and other programs.

We support our employees with a robust and competitive employee benefits program, including a flexible vacation policy, parental leave, 401(k) matching, tuition reimbursement, an Employee Assistance Program, and other programs.

Additionally, we have a wellness program that provides fun, engaging challenges to encourage employees to continuously improve their physical, mental, and financial well-being.

Programs we run throughout the year include biometric screenings, personal finance check-ups, and healthy lunch challenges.

In our corporate offices, we recently improved our wellness room by doubling the space for employees to take a break to decompress.

The rooms also provide nursing mothers a peaceful place to meet their needs.

Our technological advances and multiple properties around the DC metro area allow our teams the flexibility to work from anywhere that suits their needs at any time.

Some of the programs we offer throughout the year include biometric screenings, personal finance check-ups, and healthy lunch challenges.

In our corporate office, we offer two wellness rooms for employees to take a break to decompress.

Our technological capabilities allow our employees the flexibility to work from anywhere at any time.

This allows us to easily meet our tenants’ needs as well as those of our employees, which has been especially important during the COVID-19 pandemic.

Diversity and Inclusion

WashREIT’s Diversity, Equity, Inclusion, and Belonging Initiative ("DEIB") is a long-term commitment to promote an environment where each individual feels comfortable being their most authentic selves.

We believe diversity of backgrounds, experiences, cultures, ethnicities, and interests leads to new ways of thinking and drives organizational success.

Our diverse 17 member DEIB Council is overseen by WashREIT’s senior leadership team and Board of Trustees.

The DEIB Council both tracks and monitors our diversity metrics and facilitates learning and training opportunities that include:

Diversity Speaker Series, targeted recruitment and relationship development of historically black colleges and universities and other diverse industry groups for internships, annual inclusion and belonging employee survey, partnership with diverse local non-profit to provide tutoring for school aged children among others.

WashREIT’s Diversity, Equity, Inclusion, and Belonging Initiative ("DEIB") is a long-term commitment to promoting an environment where each individual feels comfortable being their most authentic selves.

We believe diversity of backgrounds, experiences, cultures, ethnicities, and interests leads to new ways of thinking and drives engagement and organizational success.

Our diverse DEIB Council is overseen by WashREIT’s senior leadership team and board of trustees.

The DEIB Council tracks and monitors our diversity metrics and facilitates learning and training opportunities, including a diversity speaker series, targeted recruitment and relationship development with diverse industry groups for internships and employment opportunities and partnering with community-based non-profits for volunteer activities.

Community Engagement

As a real estate investment trust, investing is at the core of what we do.

But the most valuable investments we make are not in our buildings—they are in our people and our community.

With more than five decades of experience operating exclusively in the Washington metro region, we’re passionate about making a difference in the region we call home.

As a real estate investment trust, investing is at the core of what we do, but the most valuable investments we make are not in our buildings but in our people and our community.

We are passionate about making a difference in the regions we call home.

We are committed to improving the lives of those in need, and our employees participate in a wide variety of philanthropic activities throughout the year.

Whether volunteering at a food bank, running a toy drive, walking for a cause, or participating in our company-wide community service day, we’re proud to foster a culture of giving back.

Whether volunteering at a food bank, running a toy drive, walking for a cause, or participating in our company-wide community service day, we are proud to foster a culture of giving back.

REIT Tax Status

2 unchanged sentences

When selling a property, we generally have the option of (a) reinvesting the sales proceeds of property sold, in a way that allows us to defer recognition of some or all of the taxable gain realized on the sale, (b) distributing gains to the shareholders with no tax to us or (c) treating net long-term capital gains as having been distributed to our shareholders, paying the tax on the gain deemed distributed and allocating the tax paid as a credit to our shareholders.

Generally, and subject to our ongoing qualification as a REIT, no provisions for income taxes are necessary except for taxes on undistributed taxable income and taxes on the income generated by our taxable REIT subsidiaries (“TRSs”).

Our TRSs are subject to corporate U.S.

Our taxable REIT subsidiaries are subject to corporate U.S.

federal, state and local income tax on their taxable income at regular statutory rates (see note 1 to the consolidated financial statements for further disclosure).

14 unchanged sentences

In addition, under various federal, state and local laws and regulations relating to the environment, as a current or former owner or operator of real property, we may be liable for costs and damages resulting from the presence or discharge of hazardous or toxic substances, waste or petroleum products at, on, in, under, or migrating from such property, including costs to investigate and clean up such contamination and liability for natural resources damage.

In addition, we also may be liable for the costs of remediating contamination at off-site waste disposal facilities to which we have arranged for the disposal or treatment of hazardous substances, without regard to whether we complied with environmental laws in doing so.

In addition, we also may be liable for the costs of

remediating contamination at off-site waste disposal facilities to which we have arranged for the disposal or treatment of hazardous substances, without regard to whether we complied with environmental laws in doing so.

Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the presence of such contamination, and the liability may be joint and several.

3 unchanged sentences

Moreover, if contamination is discovered on our properties, environmental laws may impose restrictions on the manner in which property may be used or businesses may be operated, and these restrictions may require substantial expenditures.

As part of our overall commitment to environmental, social, and governance (“ESG”) practices, we aim to transform environmentally- and socially-responsible strategies into sustainable actions that deliver value to our residents, tenants, shareholders, and communities.

Because we are committed to the efficient and sustainable operation of our properties for the entire lifespan of ownership, we have established programs to reduce energy, greenhouse gases, water and waste.

These practices include enrolling all of our residential properties with Bright Power Energy Score Cards, replacing old appliances with ENERGY STAR rated equipment and updating water fixtures to low-flow options as units are renovated.

We are pairing upgraded LED lighting fixtures with occupancy sensors and daylighting controls, creating partnerships to collect and transport materials for composting and adding donation boxes to facilitate the reuse of durable goods.

We are installing chargers for electric vehicles and bike storage facilities for commuters.

We track annual asset-level performance of energy use, greenhouse gas emissions, and waste diversion.

Over the past several years we have demonstrated continual progress in achieving reductions.

We publish an annual sustainability report that is aligned with the Sustainability Accounting Standards Board and includes the organization’s approach to managing climate risk in alignment with the Task Force on Climate-Related Financial Disclosures.

This report can be found online at https://www.washreit.com/sustainability-copy/.

The reference to our website address does not constitute incorporation by reference of the information contained in the website and such information should not be considered part of this document.

In 2021, we announced our commitment to net zero carbon operation in alignment with the Urban Land Institute’s Greenprint Net Zero by 2050 Goal.

Meeting this goal will require that we fully integrate a focus on carbon reductions into our strategic approach and at all levels of our organization throughout our portfolio transformation.

As a first step toward this goal, we are reevaluating the appropriate interim energy and greenhouse gas emissions targets in support of this long-term objective.

Availability of Reports

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business