2011 Investor and Analyst Day

Agenda

® Doug Donatelli
® Strategic Overview

® Nick Smith & Ernie Jarvis

® D.C. Market Overview

® Skip Dawson & Tim Zulick

® Suburban Leasing Overview

® Barry Bass
® Financial Overview
Doug Donatelli
Founder, Chairman and Chief Executive Officer
Strategic Transformation

® Continue growth in Washington, D.C. Region

® Multi-story office
® Downtown D.C. focus

® Leverage D.C.-area expertise and relationships to source attractive

acquisitions
® 8 of 17 deals sourced off market

® Deliver embedded upside via leasing

® Executed 2,340,000 SF of leases in 2010, with 955,000 SF consisting
of new leases

® Opportunistically exit non-core assets

® Sold Lindbergh, Deer Park and Old Courthouse Square
® Aquia is under contract
Pro Forma Portfolio Analysis

Portfolio Composition by Market and Property Type:

® With recent acquisitions, the portfolio’s composition is evolving toward a higher percentage of office properties
and a greater concentration of Washington, D.C.-area assets

Quarter Ended 12/31/08 (1) Current Pro Forma (2)

(1) On a 4Q08 NOI basis

(2) Pro Forma includes all recently announced acquisitions and assumes stabilized developments and lease up of ‘legacy’ portfolio
 Transforming our Portfolio

®Leveraging D.C. expertise to transition the portfolio to a higher percentage of office assets
®Greater concentration of Washington, D.C.-centric assets(1)
®Balanced portfolio across target property types – office / office park, business park and industrial

Aviation Business Park

Merrill
Lynch 500 First Street,
Redland Corporate Center N.W.
Building
Phases II and III

1200 17th Street,

Atlantic Corporate Park N.W.

440 First Street,

N.W.
840 First Street,
N.E.
Cedar Hill I & III

1211
Connecticut
1750 H Street Avenue Battlefield Corporate Center

(1) Includes closed acquisitions since December 31, 2010 and proposed acquisitions currently under contract
Creative Acquisitions and Structures

® Longstanding relationships and creative financing solutions position

us to source and execute transactions in the competitive D.C. market
® Numerous properties are being sourced off market and below replacement cost;
® All acquisitions result from our position in the market;

® Creative to invest across the capital stack

® Acquiring debt
® Mezzanine positions
® Assuming in-place debt
® Issuing UPREIT units
® Issuing “hope notes” to current owners

® Able to maneuver in highly competitive market

Goals & Progress

Long Term Goals: 2010 Progress:

® Lease up existing portfolio ® Increased Occupancy to 85.2%, 87.2% leased at 12/31

® Grow through acquisitions ® Grow through acquisitions

® Core Flex/Industrial ® Added 12 office,1 warehouse, 1 business park
® Add Office Focus ® Office NOI now 40% versus ~20% at 12/31/08
® Opportunistic ® Opportunistic – 8 of 17 acquisitions sourced off market
® Development
® Development – 3FH, Redland, Atlantic

® Dispose of some non-core assets ® Sold Deer Park and Lindbergh Drive, Old Courthouse and
Aquia under contract, additional $50 identified for possible
sale

® Continue development of existing land ® Delivered Sterling Park 6; pre-leased and started Sterling
Park 7

® Further reduce leverage (~50%), ® Pro forma debt to GAV of <50%, Debt/EBITDA 7.6x
Debt/EBITDA 7.0-8.0x

® Increase size of the company ® Increased GAV to $1.7 billion, pro forma
D.C. Market Overview
Nick Smith
EVP, Chief Investment Officer

– D.C. Native
– Co-founder of FPO
– 25 Years of experience in the region

Ernie Jarvis
SVP, D.C.

– Fifth Generation Washingtonian

– Former Managing Director, CBRE D.C. Office
– Over 15 Years of experience
 D.C. Market Overview

® Office Market Overview

® ~150 million square foot market

® including Federally owned space

® Minimal supply growth expected

® Rents stable to rising
® Overall vacancy(1) – 8.5%
® Class A – 9.6% vacancy

® Class B – ~5.0% vacancy

(1) CB Richard Ellis, Cassidy Turley, Transwestern and Delta Associates Research
DC Office Market Evolution

® Historical office concentration in CBD

® Demand pushes market toward East End (late 1980s – 1990s)

® Larger and more efficient buildings
® Larger floor plates
® Pennsylvania Avenue Development Corp.
® Verizon Center

® Capitol Hill
® U.S. Capitol
® Union Station

® NOMA (north of Massachusetts Avenue)

® Affordability
® Union Station
® Proximity to downtown

® Ballpark
® New submarket
® Defense/Government concentration
The Long Term Supply Outlook -
Muted
® City is becoming fully built out
® Height restrictions

® High barriers to entry – zoning, entitlements

® Neighborhood associations, historic considerations

® Few Development Sites Remaining

® I-395 Project

® NOMA

® Ball Park

® Redevelopments – Façade-ectomies

® Tear downs
 Submarket – CBD(1)

® 38.6 million square feet

® 2010 Net Absorption

® 827K SF

® 8.9% vacancy

® 2% of supply under construction

® 827K SF

® Average Asking Rent

® $53/SF

® Demand drivers
® Transportation
® Dupont Circle
® Farragut North
® Connecticut & Mass Ave.
® Amenities
(1) CB Richard Ellis, Cassidy Turley, Transwestern and
Delta Associates Research
 Submarket – Capitol Hill(1)

® 4.8 million square feet

® 2010 Net Absorption

® 179K SF

® 6.2% vacancy

® 0% of supply under construction

® Average Asking Rent:

® $60/SF

® Demand drivers
® U.S. Capitol
® Union Station

(1) CB Richard Ellis, Cassidy Turley, Transwestern and Delta Associates Research
 Submarket – NOMA(1)

® 9.1 million square feet

® 2010 Net Absorption:

® 936K SF

® 9.5% vacancy

® 0% of supply under
construction

® Average Asking Rent:

® $48/SF

® Demand drivers:
® Affordability
® Union Station
® Mass. Ave
(1) CB Richard Ellis, Cassidy Turley, Transwestern and Delta Associates Research
 Submarket – East End(1)

® 42.1 million square feet

® 2010 Net Absorption

® 627K SF

® 8.3% vacancy

® <1% of supply under construction

® 169K SF

® Average Asking Rent

® $52/SF

® Demand drivers:
® Newer, larger buildings
® Larger floor plates
® Pennsylvania Avenue
® Varied amenity base

(1) CB Richard Ellis, Cassidy Turley, Transwestern and Delta Associates Research
Other Submarkets

® Ballpark

® Georgetown

® Southwest

® Uptown

® West End
Today’s DC Tour

® NOMA
® 840 First Street, NE

® Capitol Hill
® 440 First Street, NW
® 500 First Street, NW

® CBD
® 1750 H Street, NW
® 1211 Connecticut Avenue, NW
® 1200 17th Street, NW

® East End
® 950 F Street, NW

® Lunch
Suburban Leasing Overview
Skip Dawson
EVP, Chief Operating Officer

– Responsible for the Company’s management and leasing activities

– More than 30 years of industry experience
– With First Potomac since 1998

Tim Zulick
SVP, Leasing

– More than 20 years of industry experience

– Formerly with Trammell Crow
– With First Potomac Since 2004
 Suburban Office Market Overview –
Stable and Improving

Suburban submarkets:
® Rents flat, bouncing along bottom(1)
® NOVA - +2.0% in 2010
® MD - +3.6% in 2010
® No new office supply
® NOVA – 10bps of supply under construction
® MD - 80bps of supply under construction
® Job creation
® > 50,000 jobs created in 2010 in the National Capital Region(2)
® Absorption happening at a gradual rate
® NOVA - 1.5m SF(80bps of supply)
® MD - 0.2m SF (28bps of supply)

(1) CB Richard Ellis, Cassidy Turley, Transwestern and Delta Associates Research
(2) Bureau of Labor Statistics
 Private Sector Job Growth

® Perceived risk from lower Government demand

® Represented nearly 70% of 2010 net absorption in D.C. (1)
® Less in Suburban markets
® Perception that budget pressures will pressure demand
® Efficiency push
® Positive offset
® Job creation(2)
® >50,000 jobs created in region in 2010
® 40,000 jobs created in the region in January of 2011
® Private sector payroll growth(2)
® 80% of the regions 2010 job creation was in the private sector

(1) CB Richard Ellis, Cassidy Turley, Transwestern and Delta Associates Research
(2) Bureau of Labor Statistics
Government Leasing

® FPO has limited Government exposure

® Only 6,000 SF of 2010 new leasing was to the GSA

® Diversified Roster of Government

® Over 25 different federal agencies
® Social Security Administration
® US Coast Guard
® Federal Protection Services
® Bureau of Prisons
® Architect of the Capitol

® No leases with annual appropriations clauses

Regional Overview

% of NOI by Region - Current

 Maryland Region

(1)
Maryland Portfolio

® 3.8 million
® 83.2% occupied
® 87.2% leased

% of
Property Type
NOI
Business Park 42%
Industrial 16%
Office 40%
Retail (2) 3%

(1) Excludes Redland Corporate Center Building 2

(2) Sold Old Courthouse Square on February 18, 2011
Redland Corporate Center
Rockville, MD

Blend of in-place cash flow and potential upside

® Two Class A office buildings
® Redland II - 210,862 SF
® Redland III - 139,000 SF

® Acquired November 2010

® Built in 2009 and 2010

® $85.0 million acquisition price

® 97% owned joint venture with

developer

® Redland III is 100% leased to BAE

® Redland II acquired 99% vacant

® Opportunity to add significant value

through leasing
Ammendale Business Park
Beltsville, MD

Leasing up existing vacancy

® Three buildings
® 313,000 square feet

® Beltsville, MD submarket
® I-95
® Intercounty Connector

® 59% occupied, 92% leased at 12/31

® Significant leasing
® 12-year, 93,000 lease with
Vocus, Inc.
® New corporate
headquarters
® 8-year, 76,000 lease with
Siemens, Inc.
Girard Business Park
Gaithersburg, MD

Leasing Up Existing Vacancy

® Seven office / warehouse buildings

totaling 299,530 square feet

® Gaithersburg Submarket
® I-270 Corridor

® 73% leased and occupied at 12/31

Aviation Business Park
Glen Burnie, MD

Low basis acquisition with upside potential

® Three-building, 121,000 SF Class A

office park

® $8 million acquisition ($66/ft)

® 12.5% leased to one tenant

® Adjacent to BWI Airport

® Acquired note in September 2009

® Friendly foreclosure, took title in

December 2010

® 50/50 Joint Venture with AEW

® Third JV with AEW
 Northern Virginia Region

(1)
Northern Virginia Portfolio

® 3.0 million square feet

® 84.9% occupied
® 86.6% leased

% of
Property Type
NOI
Business Park 26%
Industrial 42%
Office 32%

(1) Excludes Atlantic Corporate Center

Atlantic Corporate Park
Sterling,VA

Class A office lease-up opportunity

with early leasing traction
® Two Class A Office buildings
® 220,000 SF
® LEED Gold Certified

® On-site fitness center, conference

rooms and green space

® Amenity-rich submarket

® Acquired for $22.6 million ($102/SF)

® Vacant at acquisition

® Recently executed first two leases

® Currently 15% leased

Sterling Park Business Center
Sterling,VA
Value-add and new development opportunity

® Accumulated park over 3 years

® 7 buildings, 495,000 SF
® Land for 350,000 SF of additional
development
® Value Creation
® Lease up of existing park
® Development/Redevelopment
® Infrastructure improvements
® Sterling Park 6 delivered in 2008
® 57,000 SF
® 54% leased to Sutron
® Sterling Park 7 under construction
® 57,000 SF
® 42% pre-leased to MSI Worldwide
Three Flint Hill
Fairfax County, VA

Well-located redevelopment
opportunity acquired well below
replacement cost
® Eight-story, 174,000 SF office
building

® Acquired for $13.6 million or

$79/SF

® $9 million complete
redevelopment near completion

® Deliver Class A, LEED-certified

property

® Low basis allows for highly

competitive lease rates

® Target ~8-10% stabilized return

Southern Virginia Region

Southern Virginia Portfolio

w 5.3 million square feet

w 86.7% leased
w 86.0% occupied

% of
Property Type
NOI
Business Park 72%
Industrial 26%
Office 2%
 First Potomac Portfolio Overview(1)

• 12,317,028 Square Feet

• 85.2% Occupied
Occupancy By Region
100%
90%
80%
70%
60%
50%
40%
30%
20%
10% 100% 83.2% 84.9% 86.0%
0%
Washington, DC Maryland Northern VA Southern VA

100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
80.2% 87.0% 90.3%
0.0%
Business Park Office Industrial

(1) Excludes Atlantic Corporate Center and Redland Corporate Center Building 2
Leasing – The opportunity

® Minimal expirations provide opportunity to drive occupancy

® Job creation has returned to the region
® Leasing activity steady
® Opportunity to push occupancy in 2012
Future Lease Expirations
5M 40.9% 45.0%

40.0%
4M 35.0%

30.0%
3M
25.0%

13.9% 20.0%
2M 14.5%
11.1% 15.0%
8.7% 8.8%
1M 10.0%

5.0%

M 0.0%
2011 2012 2013 2014 2015 Thereafter

SF Expiring % Rent Expiring

Financial Overview
Barry Bass
EVP, Chief Financial Officer

– Responsible for the Company’s financial activities and capital strategy

– More than 25 years of industry experience
– With First Potomac since 2002
2010 – A Look Back

2010 Highlights:

® Raised $265 million in net common equity proceeds, including $7 million of ATM proceeds

® Raised $111 million in net preferred equity proceeds at 7.75% coupon

® Refinanced and expanded line of credit to $225 million, adding US Bank and TD Bank

® Announced or closed on over $600 million of acquisitions/investments

® Increased pro forma downtown D.C. NOI to roughly 15% of portfolio NOI

® Sold Deer Park, Lindbergh Drive and Old Courthouse Square; Aquia is under contract
® Additional $50 million identified for possible sale

® Increased GAV to $1.7 billion, pro forma for acquisitions under contract

® Improved capital structure

® Debt to GAV <50%
® Debt/EBITDA (excluding acquisition costs) at 7.0 - 8.0x pro forma
Balance Sheet Highlights

w Common and preferred offerings “pre funded” acquisitions

w Unsecured placement will tap “excess” capacity

w Create access to nearly entire line of credit

w Lease up of vacancy will further increase capacity

w Opportunity to increase size of credit facility

Balance Sheet Flexibility – Pro Forma

Preferred Pending
Offering & Acq/Inv -
Completed Unsecured
($ in millions) 12/31/2010 Acq. 3/31/2011 Debt Pro Forma
Gross Asset Value $ 1,502.9 $ 123.8 $ 1,626.7 $ 36.5 $ 1,663.1
Secured Debt
Mortgages + JV Mortgage Debt 342.1 88.7 430.8 52.4 483.2
Term Loan I 40.0 (10.0) 30.0 - 30.0
Term Loan II 20.0 - 20.0 - 20.0
Secured Term Loan 50.0 - 50.0 (50.0) -
Total Secured Debt 452.1 530.8 533.2

Unsecured Debt
Exchangeable Notes, net of discount 30.5 30.5 30.5
Senior Unsecured Debt 75.0 75.0 100.0 175.0
Unsecured Revolving Credit Facility 191.0 (85.2) 105.8 (116.6) 39.3
Total Unsecured Debt 296.5 211.3 244.7

Total Debt & Other $ 748.6 $ 742.1 $ 777.9

Preferred Equity $ - 115.0 $ 115.0 115.0

Borrowing Capacity & Leverage

Unsecured Revolving Credit Capacity $ 34.0 $ 119.2 $ 185.7
Debt to Gross Asset Value 50% 46% 47%
Debt + Preferred to Gross Asset Value 50% 53% 54%
Overall Debt Capacity $ 190.7 $ 274.6 $ 261.5
Secured Debt as % of GAV 30% 33% 32%
Secured Debt Capacity $ 149.1 $ 119.9 $ 132.1
Key Covenant Ratios

Maximum Consolidated Total

Indebtedness
Unencumbered Pool Leverage
80.0%
Covenant
2.50x 70.0%
2.1x
2.0x
2.00x 1.8x 1.8x 1.8x 60.0% 55.4% 58.0% 56.6% 56.1%
50.2%
1.50x 50.0%

1.00x 40.0%

0.50x 30.0%
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

Maximum Secured Debt

Fixed Charge Coverage Ratio
50.0%
2.50x
45.0%
2.0x 2.0x
1.9x
2.00x 1.8x 1.8x 40.0%
36.2% 37.0%
34.7%
1.50x 35.0%
30.4% 29.4%
1.00x 30.0%

0.50x 25.0%
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

Note: Lines through graphs represent the permitted level as defined in the Existing Note Purchase Agreement
Source: First Potomac Realty Trust
 Expected Capital Availability/Needs(1)

12/31 Current Pro Forma Uses:

Acquisitions under contract $40
Debt Capacity $191 $275 $262
Greenbrier Development $8

Cash/Deposits $45 $45 $45 Three Flint Hill Redevelopment $10

440 First St. Redevelopment $13
Current “Dry Powder” $236 $320 $307
1200 17th St. Redevelopment $50
Total: $121

w Assumes no NOI growth

w Assumes no additional dispositions
w Assumes no equity issuance

(1) In millions
 Manageable Maturity Schedule

w Manageable pro forma maturity schedule and a variety of available, attractive

financing alternatives to address maturities

$ 200 M

$ 150 M

$ 100 M

$ 50 M

$ M

Exchangeable Senior Notes Fixed Rate Debt Senior Unsecured Debt Variable Rate Debt

Note: Pro Forma for the offering and acquisitions closed since December 31, 2010 and proposed acquisitions currently under contract
The Transformation –
NOI at lease up and stabilization
® D.C. NOI continues to increase
® Lease up of development assets
® 20% of total NOI at stabilization
® Office NOI continues to increase
® Lease up of value add assets: Redland II, Atlantic Corporate Park
® ~50% of NOI at stabilization

% of NOI by Property Type - Stabilized % of NOI by Region - Stabilized

 Post Transformation –
A Better Company . . .
® Better Portfolio
® 20% of NOI from D.C.
® 50% of NOI from multi-story office
® Dispose of non-core assets
® Bigger Company
® Nearly $2.0 Billion GAV
® Improved float
® Better balance sheet and Liquidity
® <50% debt to GAV
® Debt/EBITDA 7.0-8.0x
® Migrating to unsecured balance
sheet; longer term debt
® Access preferred market
® ATM capacity
® Enhanced relationships
® Akridge
® AEW
® Perseus
® Douglas Development
…With Better Growth Prospects

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