<PAGE>

                                                                     EXHIBIT 21
B. F. SAUL REAL ESTATE INVESTMENT TRUST
LIST OF SUBSIDIARIES

<TABLE>
<CAPTION>
                                         Site of              Date of               Current
                                      Incorporation         Acquisition/      Principal Business
                                                             Formation              Activity
--------------------------------------------------------------------------------------------------

100% OWNED SUBSIDIARIES

<S>                                      <C>                   <C>               <C>
Auburn Hills Hotel Corporation        Maryland                  1994               Hotel Owner

Avenel Executive Park Phase II, Inc.  Maryland                  1987           Real Estate Investor
                                          
Commerce Center Development Corp.     Florida                   1980            Office Park Owner
                                         
Crabtree Hotel Corp.                North Carolina              1995                Inactive
                                         
Crystal City Hospitality Corp.        Virginia                  1989               Hotel Owner
                                         
Dallas San Simeon Incorporated         Texas                    1993         Apartment Project Owner
                                         
Dearborn Corporation                  Delaware                  1992               Land Owner

Dulles Airport Hotel Corporation      Virginia                  1989                Inactive
                                         
Flagship Centre Corporation           Maryland                  1985               Land Owner
                                         
Herndon Hotel Corporation             Virginia                  1996              Hotel Owner

MHC Airport Inn. Inc. (a)             New York                  1980/1976        Hotel Operator
 
MHC Corporation                       Maryland                  1980/1974        Hotel Operator

Metairie Office Towers, Inc. (b)      Louisiana                 1995           Office Bldg Owner
                                         
NVA Development Corporation           Virginia                  1984      Gen'l Part / Real Est. P/ship
                                         
Peachtree / Northeast Corp.            Georgia                  1979               Land Owner
                                         
Pueblo Hotel Corp.                    Colorado                  1985              Hotel Owner

Rochester Airport Hotel Corporation   New York                  1986                Inactive

Scope Hospitality Corp.               Virginia                  1989                Inactive

Sharonville Hotel Corporation           Ohio                    1986                Inactive
                                         
Timber Resources, Inc.                Delaware                  1988                Inactive

Tysons Corner Hospitality Corp.       Virginia                  1989                Inactive
                                         
University Avenue Hotel Corporation   Arkansas                  1995                Inactive
                                         
Wheeler Road, Inc.                    Maryland                  1992                Inactive

900 Corporation                       Georgia                   1981           Office Bldg Owner

1100 Corporation                      Georgia                   1979           Office Bldg Owner

1113 Corporation                      Florida                   1984     Gen'l Part / Real Est. P / ship
</TABLE>

---------------------------------------
(a) Subsidiary of MHC Corporation
(b) Subsidiary of Dearborn Corporation


<PAGE>


                                                                     EXHIBIT 21
B. F. SAUL REAL ESTATE INVESTMENT TRUST
LIST OF SUBSIDIARIES (Continued)


<TABLE>
<CAPTION>
                                                                                    Date of               Current
                                                                    Site of        Acquistion        Principal Business
                                                   Note           Corporation      Formation/             Activity
--------------------------------------------------------------------------------------------------------------------------------
 80% OWNED SUBSIDIARIES
<S>                                               <C>             <C>               <C>           <C>
 Ashburn Village Development Corporation            (A)             Maryland         1991         Real Estate Owned (REO) 
 Bailey's Corporation                               (A)             Maryland         1993                 Inactive    
 Balmoral Golf Corporation                          (B)             Maryland         1992                 Inactive    
 B. F. Saul Mortgage Company                        (C)             Maryland         1984       Residential Loan Origination 
 Bondy Way Development Corporation                  (A)             Maryland         1990                    REO      
 Brambleton Land Corporation                        (A)             Maryland         1977                    REO      
 Brooke Manor Land Corporation                      (A)             Maryland         1990                 Inactive    
 CCB Holding Corporation                            (C)             Delaware         1994                Investments  
 CCRE, Inc.                                         (D)             Maryland         1984                 Inactive    
 Cherrytree Corporation                             (A)             Maryland         1993                    REO      
 Chevy Chase Bank, F.S.B.                                        United States       1969               Savings Bank  
 Chevy Chase Financial Services Corporation         (C)             Virginia         1996     Stock Ownership of CCIA and CCS 
 Chevy Chase Insurance Agency, Inc. ("CCIA")        (E)             Maryland       1985/1971          Insurance Agency         
 Chevy Chase Mortgage Company                       (F)             Maryland         1972                 Inactive             
 Chevy Chase Mortgage Company of Virginia           (C)             Virginia         1996                 Inactive             
 Chevy Chase Preferred Capital Corporation          (C)             Maryland         1996    Real Estate Investment Trust (REIT)
 Chevy Chase Real Estate Corporation                (C)             Virginia         1996    Stock Ownership of REO Subsidiaries 
 Chevy Chase Securities, Inc. ("CCS")               (E)             Maryland         1984                Securities             
 Consumer Finance Corporation                       (C)             Virginia         1994         Consumer Loan Origination      
 Duvall Village Corporation                         (A)             Maryland         1992                    REO                
 First Balmoral Corporation                         (A)             Maryland         1991                    REO                
 Goldsboro Heights Property Corp.                   (A)             Maryland         1992                 Inactive              
 Great Seneca Development Corporation               (A)             Maryland         1991                    REO                
 Group Investment Corporation                       (D)             Maryland         1986                 Inactive              
 Inglewood Corporation                              (A)             Maryland         1990                 Inactive              
 Manor Holding Corporation                          (C)             Virginia         1996                 Inactive              
 Manor Investment Company                           (G)             Maryland         1971     Real Estate Ownership / Development
 Marbury I Corporation                              (A)             Maryland         1991                    REO                
 Marbury II Corporation                             (A)             Maryland         1991                    REO                
 NML Corporation                                    (A)             Maryland         1992                    REO                
 North Ode Street Development Corporation           (D)             Maryland         1981      Real Estate Finance / Development 
 Oak Den, Inc.                                      (A)             Maryland         1991                 Inactive              
 Old Chapel Corporation                             (A)             Maryland         1992                    REO                
 PMC Corporation                                    (A)             Maryland         1991                 Inactive              
 Presley Corporation                                (C)             Maryland         1993            Real Estate Ownership       
 Primrose Development Corporation                   (A)             Maryland         1990                    REO                
 Ridgeview Centre Corp.                             (A)             Maryland         1992                    REO                
 Ronam Corporation, Inc.                            (C)             Maryland         1986       Real Estate Finance/Development  
 Shoppes of Jefferson, Ltd.                         (A)             Virginia         1991                 Inactive 
 Sully Park Corporation                             (A)             Maryland         1990                 Inactive 
 Sully Station Corporation                          (A)             Maryland         1990                    REO 
 Sycolin - Leesburg Corporation                     (A)             Maryland         1992                    REO 
 Terminal Drive Properties Corporation              (A)             Maryland         1991                    REO 
</TABLE>

-------------------------------------------
(A)   Subsidiary of Chevy Chase Real Estate Corporation 
(B)   Subsidiary of First Balmoral Corporation
(C)   Subsidiary of Chevy Chase Bank, F.S.B.
(D)   Subsidiary of Manor Investment Company
(E)   Subsidiary of Chevy Chase Financial Services Corporation
(F)   Subsidiary of Chevy Chase Mortgage Company of Virginia
(G)   Subsidiary of Manor Holding Company