##### 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THESECURITIES EXCHANGE ACT OF 1934For the quarterly period ended June 30, 2006
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 159d) OF
THESECURITIES EXCHANGE ACT OF 1934For the transition period from            to
 COMMISSION FILE NO. 001-32536
 COLUMBIA EQUITY TRUST, INC.
  Maryland
    
    20-1978579(State or other jurisdiction of
incorporation or organization)
    
    (I.R.S. Employer
Identification Number)
 1750 H Street, N.W.,Suite 500, Washington, D.C.
    
    20006(Address of principal executive office)
    
    (Zip code)
 (202) 303-3080
 þ o
  o o þ
 o þ




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##### 



COLUMBIA EQUITY TRUST, INC.
FORM 10-Q
 TABLE OF CONTENTS
 PagePART I  FINANCIAL INFORMATIONItem 1.
    
    Financial Statements.Balance Sheets as of June 30, 2006 (unaudited) and December 31, 2005 for Columbia Equity Trust, Inc.
    
    
    4Statements of Operations for the three months and six months ended June 30, 2006 (unaudited) for Columbia Equity Trust, Inc. and for the three months and six months ended June 30, 2005 (unaudited) for Combined Columbia Predecessor
    
    
    5Statements of Cash Flows for the six months ended June 30, 2006 (unaudited) for Columbia Equity Trust, Inc. and for the six months ended June 30, 2005 (unaudited) for Combined Columbia Predecessor
    
    
    6Notes to Financial Statements
    
    
    7Item 2.
    
    Management's Discussion and Analysis of Financial Condition and Results of Operations.
    
    
    26Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk.
    
    
    45Item 4.
    
    Controls and Procedures.
    
    
    46PART II  OTHER INFORMATIONItem 1A.
    
    Risk Factors.
    
    
    47Item 4.
    
    Submission of Matters to a Vote of Security Holders.
    
    
    47Item 6.
    
    Exhibits.
    
    
    47SIGNATURES
    
    
    48EXHIBIT INDEX
    
    
    49
 2




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##### 



PART I  FINANCIAL INFORMATION
 
 Item 1. Financial Statements
    3




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##### 



COLUMBIA EQUITY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
 June 30,
    
    
    December 31,2006
    
    
    2005(Unaudited)AssetsRental propertyLand
    
    $
    27,087,572
    
    
    $
    19,300,819Buildings
    
    
    147,901,486
    
    
    
    120,509,954Tenant improvements
    
    
    31,492,146
    
    
    
    24,377,997Furniture, fixtures and equipment
    
    
    1,098,705
    
    
    
    1,088,989207,579,909
    
    
    
    165,277,759Accumulated depreciation
    
    
    (7,053,609
    )
    
    
    (2,805,222
    )Total rental property, net
    
    
    200,526,300
    
    
    
    162,472,537Cash and cash equivalents
    
    
    8,387,651
    
    
    
    8,149,634Restricted deposits
    
    
    562,234
    
    
    
    256,356Accounts and other receivables, net of reserves for doubtful
accounts of $35,093 and $39,401, respectively
    
    
    861,240
    
    
    
    1,039,510Investments in unconsolidated real estate entities
    
    
    40,694,318
    
    
    
    42,308,003Accrued straight-line rents
    
    
    1,504,403
    
    
    
    524,258Deferred leasing costs, net
    
    
    749,245
    
    
    
    490,609Deferred financing costs, net
    
    
    1,107,525
    
    
    
    955,129Intangible assetsAbove market leases, net
    
    
    4,404,617
    
    
    
    3,610,453In-place leases, net
    
    
    18,534,256
    
    
    
    15,813,098Tenant relationships, net
    
    
    7,133,283
    
    
    
    6,387,594Prepaid expenses and other assets
    
    
    959,103
    
    
    
    1,323,308Total assets
    
    $
    285,424,175
    
    
    $
    243,330,489Liabilities and Stockholders EquityLiabilitiesRevolving loan payable
    
    $
    21,450,000
    
    
    $
    22,000,000Mortgage notes payable
    
    
    74,096,914
    
    
    
    27,358,998Accounts payable and accrued expenses
    
    
    2,669,903
    
    
    
    2,252,575Security deposits
    
    
    1,220,555
    
    
    
    945,158Dividends payable
    
    
    2,079,500
    
    
    
    1,940,867Rent received in advance
    
    
    1,361,215
    
    
    
    758,265Deferred credits  Below market leases, net
    
    
    2,337,327
    
    
    
    1,593,812Other liabilities
    
    
    95,179
    
    
    
    Total liabilities
    
    
    105,310,593
    
    
    
    56,849,675Commitments and contingenciesMinority interest
    
    
    14,107,493
    
    
    
    14,205,638Stockholders equityPreferred stock, $0.001 par value, 100,000,000 shares authorized in
2006 and 2005, no shares issued or outstanding in either period
    
    
    
    
    
    
    Common stock, $0.001 par value, 500,000,000 shares authorized
and 13,863,334 shares issued and outstanding in 2006 and 2005
    
    
    13,863
    
    
    
    13,863Additional paid-in capital
    
    
    178,366,298
    
    
    
    178,366,298Cumulative dividends in excess of net income
    
    
    (12,374,072
    )
    
    
    (6,104,985
    )Total stockholders equity
    
    
    166,006,089
    
    
    
    172,275,176Total liabilities and stockholders equity
    
    $
    285,424,175
    
    
    $
    243,330,489
  4




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##### 



COLUMBIA EQUITY TRUST, INC.
AND COLUMBIA EQUITY TRUST, INC. PREDECESSOR
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
 Combined
    
    
    
    
    
    
    CombinedConsolidated
    
    
    Columbia
    
    
    Consolidated
    
    
    ColumbiaColumbia Equity
    
    
    Predecessor for the
    
    
    Columbia Equity
    
    
    Predecessor for theTrust, Inc. for the
    
    
    Three Months
    
    
    Trust, Inc. for the
    
    
    Six MonthsThree Months Ended
    
    
    Ended
    
    
    Six Months Ended
    
    
    EndedJune 30, 2006
    
    
    June 30, 2005
    
    
    June 30, 2006
    
    
    June 30, 2005(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)RevenuesBase rents
    
    $
    6,510,618
    
    
    $
    
    
    
    $
    12,704,599
    
    
    $
    Recoveries from tenants
    
    
    401,718
    
    
    
    
    
    
    
    711,016
    
    
    
    Fee income, primarily from related parties
    
    
    263,973
    
    
    
    815,997
    
    
    
    668,321
    
    
    
    1,438,356Parking and other income
    
    
    157,964
    
    
    
    
    
    
    
    294,173
    
    
    
    Total revenues
    
    
    7,334,273
    
    
    
    815,997
    
    
    
    14,378,109
    
    
    
    1,438,356Operating expensesProperty operating
    
    
    1,099,415
    
    
    
    
    
    
    
    2,240,608
    
    
    
    Utilities
    
    
    597,659
    
    
    
    
    
    
    
    1,129,844
    
    
    
    Real estate taxes and insurance
    
    
    620,465
    
    
    
    
    
    
    
    1,277,302
    
    
    
    General and administrative, including share-based
compensation cost of $234,750, $0, $469,500
and $0, respectively
    
    
    1,344,597
    
    
    
    1,165,924
    
    
    
    2,408,971
    
    
    
    1,544,898Depreciation and amortization
    
    
    3,547,507
    
    
    
    4,357
    
    
    
    7,005,896
    
    
    
    7,360Total operating expenses
    
    
    7,209,643
    
    
    
    1,170,281
    
    
    
    14,062,621
    
    
    
    1,552,258Operating income (loss)
    
    
    124,630
    
    
    
    (354,284
    )
    
    
    315,488
    
    
    
    (113,902
    )Other income and expenseInterest income
    
    
    72,418
    
    
    
    14,546
    
    
    
    115,753
    
    
    
    19,878Interest expense
    
    
    (1,409,609
    )
    
    
    (2,250
    )
    
    
    (2,561,582
    )
    
    
    (4,500
    )Loss before income taxes, equity
in net income (loss) of unconsolidated
real estate entities and minority interest
    
    
    (1,212,561
    )
    
    
    (341,988
    )
    
    
    (2,130,341
    )
    
    
    (98,524
    )Equity in net income (loss) of unconsolidated
real estate entities
    
    
    38,071
    
    
    
    2,202,058
    
    
    
    (97,900
    )
    
    
    2,304,975Minority interest
    
    
    84,152
    
    
    
    
    
    
    
    159,654
    
    
    
    (Loss) income before income taxes
    
    
    (1,090,338
    )
    
    
    1,860,070
    
    
    
    (2,068,587
    )
    
    
    2,206,451Provision for income taxes
    
    
    8,000
    
    
    
    197,823
    
    
    
    41,500
    
    
    
    231,884Net (loss) income
    
    $
    (1,098,338
    )
    
    $
    1,662,247
    
    
    $
    (2,110,087
    )
    
    $
    1,974,567Net loss per common share  Basic and diluted
    
    $
    (0.08
    )
    
    
    
    
    
    $
    (0.15
    )Weighted average shares of common stock
outstanding  Basic and diluted
    
    
    13,863,334
    
    
    
    
    
    
    
    13,863,334
  5




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##### 



COLUMBIA EQUITY TRUST, INC.
AND COLUMBIA EQUITY TRUST, INC. PREDECESSOR
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
 Consolidated
    
    
    CombinedColumbia Equity
    
    
    ColumbiaTrust, Inc. for the
    
    
    Predecessor for theSix Months Ended
    
    
    Six Months EndedJune 30, 2006
    
    
    June 30, 2005(Unaudited)
    
    
    (Unaudited)Cash flows from operating activitiesNet (loss) income
    
    $
    (2,110,087
    )
    
    $
    1,974,567Adjustments to reconcile net (loss) income to net
cash provided by (used in) operating activitiesMinority interest
    
    
    (159,654
    )
    
    
    Equity in net loss (income) of unconsolidated real estate entities
    
    
    97,900
    
    
    
    (2,304,975
    )Compensation cost related to LTIP units
    
    
    382,500
    
    
    
    Distributions received from earnings of unconsolidated
real estate entities
    
    
    298,147
    
    
    
    19,055Depreciation and amortization
    
    
    7,005,896
    
    
    
    7,360Amortization of above and below market leases
    
    
    179,336
    
    
    
    Amortization of deferred financing costs
    
    
    222,632
    
    
    
    Provision for doubtful accounts
    
    
    (4,308
    )
    
    
    Changes in assets and liabilitiesAccounts and other receivables
    
    
    182,578
    
    
    
    (34,933
    )Accrued straight-line rents
    
    
    (980,145
    )
    
    
    Deferred leasing costs
    
    
    (309,652
    )
    
    
    Deferred offering costs
    
    
    
    
    
    
    (2,693,176
    )Prepaid expenses and other assets
    
    
    (21,591
    )
    
    
    (440,020
    )Accounts payable and accrued expenses
    
    
    412,940
    
    
    
    2,721,057Accrued interest payable to stockholders
    
    
    
    
    
    
    4,500Rent received in advance
    
    
    448,741
    
    
    
    Other liabilities
    
    
    4,623
    
    
    
    Net cash provided by (used in) operating activities
    
    
    5,649,856
    
    
    
    (746,565
    )Cash flows from investing activitiesPurchases of interests in rental property and related net assets
    
    
    (26,631,482
    )
    
    
    Deposit on pending purchase of interest in rental property
    
    
    (200,000
    )
    
    
    Additions to rental properties
    
    
    (2,139,938
    )
    
    
    Additions to rental property furniture, fixtures and equipment
    
    
    (8,687
    )
    
    
    (3,772
    )Restricted deposits
    
    
    (148,344
    )
    
    
    Distributions in excess of net income
received from real estate entities
    
    
    1,217,640
    
    
    
    2,707,753Contributions made to unconsolidated real estate entities
    
    
    
    
    
    
    (508,000
    )Net cash (used in) provided by investing activities
    
    
    (27,910,811
    )
    
    
    2,195,981Cash flows from financing activitiesBorrowings under revolving credit line
    
    
    29,250,000
    
    
    
    Repayment of revolving credit line borrowings
    
    
    (29,800,000
    )
    
    
    Mortgage note borrowings
    
    
    27,685,985
    
    
    
    Repayments of mortgage note
    
    
    (65,595
    )
    
    
    Deferred financing costs
    
    
    (192,502
    )
    
    
    Dividends
    
    
    (4,020,367
    )
    
    
    Contributions
    
    
    
    
    
    
    250,000Distributions to minority interest
    
    
    (310,292
    )
    
    
    (163,989
    )Security deposits refunded, net
    
    
    (48,257
    )
    
    
    Net cash provided by financing activities
    
    
    22,498,972
    
    
    
    86,011Net increase in cash and cash equivalents
    
    
    238,017
    
    
    
    1,535,427Cash and cash equivalents, beginning of period
    
    
    8,149,634
    
    
    
    1,188,146Cash and cash equivalents, end of period
    
    $
    8,387,651
    
    
    $
    2,723,573Supplemental disclosuresCash paid for income taxes
    
    $
    8,000
    
    
    $
    Cash paid for interest
    
    $
    1,991,501
    
    
    $
    Debt assumed in purchases of interests in rental property
    
    $
    19,000,000
    
    
    $
    Liability for asbestos remediation assumed as part of
purchase of rental property
    
    $
    90,556
    
    
    $
    Non-cash additions to rental properties
    
    $
    127,480
    
    
    $
    
  6




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##### 



COLUMBIA EQUITY TRUST, INC. AND
COLUMBIA EQUITY TRUST, INC. PREDECESSOR
 NOTES TO FINANCIAL STATEMENTS
(Unaudited)
 1. Organization and Description of Business
     2.
Basis of Presentation and Summary of Significant Accounting Policies
 a) Unaudited Interim Consolidated Financial Information
  7




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##### 



b) Principles of Consolidation
  c) Cash and Cash Equivalents
  d) Fair Value of Financial Instruments
  e) Revenue Recognition
   8




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##### 



f) Investments in Rental Property
     g) Investments in Unconsolidated Real Estate Entities
     9




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##### 



h) Minority Interest
     i) Tenant Leasing Costs
  j) Deferred Financing Costs
  k) Share Based Compensation
  10




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##### 



l) New Accounting Pronouncements
   m) Income Taxes
   n) Managements Estimates
  o) Segment Disclosure
  p) Concentration of Credit Risk
  11




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##### 



q) Comprehensive Income
  3. Earnings Per Share
  For the Three
    
    
    For the SixMonths Ended
    
    
    Months EndedJune 30, 2006
    
    
    June 30, 2006Net loss
    
    $
    (1,098,338
    )
    
    $
    (2,110,087
    )Weighted average shares outstanding
    
    
    13,863,334
    
    
    
    13,863,334Basic and diluted loss per share
    
    $
    (0.08
    )
    
    $
    (0.15
    )
  4. Office Property Acquisitions
  12




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##### 



Rental property
    
    $
    40,364,000Intangible assets
    
    
    7,405,000Other assets
    
    
    305,000Total assets acquired
    
    
    48,074,000Mortgage note payable
    
    
    19,000,000Deferred credits
    
    
    1,001,000Other liabilities
    
    
    774,000Total liabilities assumed
    
    
    20,775,000Net assets acquired
    
    $
    27,299,000
  Pro Forma
    
    
    As ReportedFor the Three
    
    
    For the ThreeMonths Ended
    
    
    Months EndedJune 30, 2006
    
    
    June 30, 2006Revenues
    
    $
    7,509,000
    
    
    $
    7,334,273Net loss
    
    $
    (1,137,000
    )
    
    $
    (1,098,338
    )Net loss per share
    
    $
    (0.08
    )
    
    $
    (0.08
    )Weighted average number
of shares outstanding
    
    
    13,863,334
    
    
    
    13,863,334
 13




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##### 



Pro Forma
    
    
    As ReportedFor the Six
    
    
    For the SixMonths Ended
    
    
    Months EndedJune 30, 2006
    
    
    June 30, 2006Revenues
    
    $
    14,955,000
    
    
    $
    14,378,109Net loss
    
    $
    (2,269,000
    )
    
    $
    (2,110,087
    )Net loss per share
    
    $
    (0.16
    )
    
    $
    (0.15
    )Weighted average number
of shares outstanding
    
    
    13,863,334
    
    
    
    13,863,334
 5. Investments in Unconsolidated Real Estate Entities
  Square
    
    
    PercentProperty
    
    Location
    
    Feet
    
    
    Owned1575 Eye Street
    
    Washington, D.C.
    
    
    210,372
    
    
    
    9.18
    %Atrium
    
    Alexandria, Va.
    
    
    138,507
    
    
    
    37.00
    %Barlow Building
    
    Chevy Chase, Md.
    
    
    270,490
    
    
    
    40.00
    %Independence Center  I
    
    Chantilly, Va.
    
    
    275,002
    
    
    
    14.74
    %Independence Center  II
    
    Chantilly, Va.
    
    
    
    (1)
    
    
    8.10
    %King Street
    
    Alexandria, Va.
    
    
    149,080
    
    
    
    50.00
    %Madison Place
    
    Alexandria, Va.
    
    
    107,960
    
    
    
    50.00
    %Suffolk Building
    
    Falls Church, Va.
    
    
    257,425
    
    
    
    36.50
    %Victory Point
    
    Chantilly, Va.
    
    
    147,743
    
    
    
    10.00
    %
 
 (1)
    
    A 115,368 square foot office building is currently under construction. 14




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##### 



2006
    
    
    2005Assets
Investments in real estate
    
    $
    313,301,208
    
    
    $
    306,193,345Receivables and deferred rents
    
    
    9,220,438
    
    
    
    9,458,009Other assets
    
    
    48,687,421
    
    
    
    51,513,600Total assets
    
    $
    371,209,067
    
    
    $
    367,164,954Liabilities and EquityMortgage loans
    
    $
    264,382,370
    
    
    $
    255,897,580Other liabilities
    
    
    16,295,944
    
    
    
    16,515,825Equity  Columbia Equity Trust, Inc.
    
    
    33,819,989
    
    
    
    35,176,959Equity  Other owners
    
    
    56,710,764
    
    
    
    59,574,590Total liabilities and equity
    
    $
    371,209,067
    
    
    $
    367,164,954
  2006
    
    
    2005Equity in underlying real estate entities, above
    
    $
    33,819,989
    
    
    $
    35,176,959Excess of purchase price over underlying assets
acquired by Columbia Equity Trust, Inc.
    
    
    7,314,565
    
    
    
    7,314,565Additional investment by Columbia Equity Trust, Inc.
    
    
    12,283
    
    
    
    12,283Less additional depreciation and amortization of
underlying assets of unconsolidated real estate entities
    
    
    (391,608
    )
    
    
    (195,804
    )Elimination of intercompany transactions
    
    
    (60,911
    )
    
    
    Investments in unconsolidated real estate entities
    
    $
    40,694,318
    
    
    $
    42,308,003
 15




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##### 



For the Three
    
    
    For the ThreeMonths Ended
    
    
    Months EndedJune 30, 2006
    
    
    June 30, 2005Revenues
    
    $
    11,754,637
    
    
    $
    10,285,293Operating and other expenses
    
    
    4,073,059
    
    
    
    4,134,430Depreciation
    
    
    3,926,811
    
    
    
    3,460,727Interest expense
    
    
    3,362,989
    
    
    
    3,788,657Total expenses
    
    
    11,362,859
    
    
    
    11,383,814Net income (loss)
    
    $
    391,778
    
    
    $
    (1,098,521
    )Company and Columbia Predecessor share of net
income (loss), respectively, net
    
    $
    92,634
    
    
    $
    (115,269
    )Less additional depreciation and amortization of
underlying assets of unconsolidated real estate entities
    
    
    (97,902
    )
    
    
    Equity in net income of real estate entities not
contributed by Columbia Predecessor at the Initial
Public Offering
    
    
    
    
    
    
    2,317,327Elimination of intercompany revenues and expenses
    
    
    43,339
    
    
    
    Equity in net income of unconsolidated real estate
entities
    
    $
    38,071
    
    
    $
    2,202,058
 16




---



##### 



For the Six
    
    
    For the SixMonths Ended
    
    
    Months EndedJune 30, 2006
    
    
    June 30, 2005Revenues
    
    $
    23,118,550
    
    
    $
    19,289,048Operating and other expenses
    
    
    8,322,752
    
    
    
    7,555,843Depreciation
    
    
    7,806,382
    
    
    
    6,113,170Interest expense
    
    
    6,686,312
    
    
    
    6,841,186Total expenses
    
    
    22,815,446
    
    
    
    20,510,199Net income (loss)
    
    $
    303,104
    
    
    $
    (1,221,151
    )Company and Columbia Predecessor share of net
income (loss), respectively, net
    
    $
    12,357
    
    
    $
    (108,595
    )Less additional depreciation and amortization of
underlying assets of unconsolidated real estate entities
    
    
    (195,804
    )
    
    
    Equity in net income of real estate entities not
contributed by Columbia Predecessor at the Initial
Public Offering
    
    
    
    
    
    
    2,413,570Elimination of intercompany revenues and expenses
    
    
    85,547
    
    
    
    Equity in
net (loss) income of unconsolidated real estate
entities
    
    $
    (97,900
    )
    
    $
    2,304,975
 17




---



##### 



6. Intangible Assets
  June 30,
    
    
    December 31,2006
    
    
    2005Intangible AssetsAbove market leases
    
    $
    5,124,125
    
    
    $
    3,892,695Accumulated amortization
    
    
    (719,508
    )
    
    
    (282,242
    )$
    4,404,617
    
    
    $
    3,610,453In-Place leases
    
    $
    21,632,398
    
    
    $
    16,980,485Accumulated amortization
    
    
    (3,098,142
    )
    
    
    (1,167,387
    )$
    18,534,256
    
    
    $
    15,813,098Tenant relationships
    
    $
    8,412,743
    
    
    $
    6,891,313Accumulated amortization
    
    
    (1,279,460
    )
    
    
    (503,719
    )$
    7,133,283
    
    
    $
    6,387,594Deferred CreditsBelow market leases
    
    $
    2,712,404
    
    
    $
    1,710,959Accumulated amortization
    
    
    (375,077
    )
    
    
    (117,147
    )$
    2,337,327
    
    
    $
    1,593,812
   18




---



##### 



7. Debt Agreements
  FairType/
    
    
    
    
    
    
    
    
    
    Note
    
    
    ValueIssuer
    
    Rate
    
    
    Maturity
    
    
    Principal
    
    
    Adjustment
    
    
    TotalCredit Facility
    
    
    6.36
    %
    
    
    11/28/2007
    
    
    $
    21,450,000
    
    
    $
    
    
    
    $
    21,450,0001025 Vermont
    
    
    5.11
    %
    
    
    1/1/2010
    
    
    
    22,500,000
    
    
    
    
    
    
    
    22,500,000Meadows IV
    
    
    4.95
    %
    
    
    11/1/2011
    
    
    
    19,000,000
    
    
    
    
    
    
    
    19,000,000Park Plaza II
    
    
    5.53
    %
    
    
    2/1/2016
    
    
    
    24,290,000
    
    
    
    
    
    
    
    24,290,000Patrick Henry
    
    
    5.02
    %
    
    
    4/1/2009
    
    
    
    8,380,048
    
    
    
    (73,134
    )
    
    
    8,306,914$
    95,620,048
    
    
    $
    (73,134
    )
    
    $
    95,546,914
  FairType/
    
    
    
    
    
    
    
    
    
    Note
    
    
    ValueIssuer
    
    Rate
    
    
    Maturity
    
    
    Principal
    
    
    Adjustment
    
    
    TotalCredit Facility
    
    
    5.55
    %
    
    
    11/28/2007
    
    
    $
    22,000,000
    
    
    $
    
    
    
    $
    22,000,000Meadows IV
    
    
    4.95
    %
    
    
    11/1/2011
    
    
    
    19,000,000
    
    
    
    
    
    
    
    19,000,000Patrick Henry
    
    
    5.02
    %
    
    
    4/1/2009
    
    
    
    8,445,643
    
    
    
    (86,645
    )
    
    
    8,358,998$
    49,445,643
    
    
    $
    (86,645
    )
    
    $
    49,358,998
   19




---



##### 



2006
    
    $
    66,0962007
    
    
    21,588,5332008
    
    
    144,5902009
    
    
    8,030,8292010
    
    
    22,500,0002011
    
    
    19,000,000Thereafter
    
    
    24,290,000$
    95,620,048
 8. Income and Other Taxes
  20




---



##### 



9. Equity Compensation Plan
  Minority Interest and
    
    
    Minority Interest andCompensation Expense
    
    
    Compensation ExpenseAs of June 30, 2006
    
    
    Recognized for the
    
    
    Recognized for theLTIP Units
    
    
    LTIP Units
    
    
    Three Months Ended
    
    
    Six Months EndedRecipient Class
    
    Granted
    
    
    Vested
    
    
    June 30, 2006
    
    
    June 30, 2006Directors
    
    
    20,000
    
    
    
    20,000
    
    
    $
    
    
    
    $
    Consultants
    
    
    15,000
    
    
    
    15,000
    
    
    
    
    
    
    
    Employees
    
    
    255,000
    
    
    
    
    
    
    
    191,250
    
    
    
    382,500290,000
    
    
    
    35,000
    
    
    $
    191,250
    
    
    $
    382,500
 10. Minimum Future Rentals
  21




---



##### 



Year EndingDecember 31,2006 (six months)
    
    $
    12,782,5592007
    
    
    25,382,9962008
    
    
    24,638,4272009
    
    
    22,855,6042010
    
    
    18,234,0612011
    
    
    14,792,634Thereafter
    
    
    25,294,297$
    143,980,578
 11. Related Party Transactions
  Transactions Reflected in the Consolidated and Combined Financial Statements
     22




---



##### 



For the Three
    
    
    For the Three
    
    
    For the Six
    
    
    For the SixMonths Ended
    
    
    Months Ended
    
    
    Months Ended
    
    
    Months EndedService
    
    June 30, 2006
    
    
    June 30, 2005
    
    
    June 30, 2006
    
    
    June 30, 2005RevenuesAsset management
    
    $
    88,163
    
    
    $
    348,463
    
    
    $
    164,947
    
    
    $
    701,194Construction management
    
    
    41,486
    
    
    
    
    
    
    
    72,743
    
    
    
    Transaction advisory
    
    
    
    
    
    
    467,534
    
    
    
    
    
    
    
    737,162Rental revenues
    
    
    40,167
    
    
    
    41,837
    
    
    
    86,403
    
    
    
    55,783ExpensesOffice space
    
    
    62,866
    
    
    
    51,837
    
    
    
    126,351
    
    
    
    89,391Administrative services
    
    
    14,923
    
    
    
    22,500
    
    
    
    32,791
    
    
    
    45,000
 As of
    
    
    As ofJune 30,
    
    
    December 31,2006
    
    
    2005ReceivablesAsset management
    
    $
    88,138
    
    
    $
    166,850Construction management
    
    
    37,654
    
    
    
    40,242Rental revenues
    
    
    6,202
    
    
    
    13,999
 Transactions Reflected in the Unconsolidated Real Estate Entities
     23




---



##### 



12. Commitments
      24




---



##### 



13. Subsequent Events
     25




---



##### 



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
   Forward Looking Statements
   
    
    general risks affecting the commercial office property industry;
    
    risks associated with the availability and terms of financing and the use of debt,
equity or other types of financings;
    
    failure to manage effectively (i) our growth and (ii) our transition from a privately
held to a publicly held company;
    
    risks and uncertainties affecting property development and construction;
    
    risks associated with downturns in the national and local economies, increases in
interest rates and volatility in the securities markets;
    
    risks associated with actual and threatened terrorist attacks;
    
    costs of compliance with the Americans with Disabilities Act and other similar laws and
potential liability for uninsured losses and environmental contamination;
    
    risks associated with the potential failure to qualify as a REIT; and
    
    the other risk factors identified in Part I, Item 1A  Risk Factors contained in our
Annual Report
    
    on Form 10-K for the year ended December 31, 2005.
 26




---



##### 



Overview and Recent Developments
    
    
    owned interests in 19 commercial office properties consisting of approximately 2.7
million square feet and one development property, including:
 
    
    100% fee simple ownership in ten properties totaling approximately
987,000 square feet of net rentable area;
    
    a 100% leasehold interest in an approximately 126,000 square foot
office building in North Rockville, Maryland (the property is subject to a ground
lease with a remaining term, including extension options, of approximately 70
years);
    
    partial interests ranging from 9% to 50% in eight office properties
totaling approximately 1.6 million square feet of net rentable area; and
    
    an 8.1% joint venture interest in a development adjacent to our
Independence Center I property that will be comprised of an approximately 115,000
square foot office building.
 
    
    provided asset management services to related parties for three office buildings
containing approximately 690,000 net rentable square feet and two hotel properties
containing approximately 610 rooms.
  
    
    On January 12, 2006, we completed the acquisition of 1025 Vermont Avenue in Washington,
D.C. for a purchase price of approximately $34.1 million, net of transaction costs. The
transaction was funded with borrowings under our credit facility and the assumption of a
$19.0 million mortgage loan which bears interest at 4.91% and matures in January 2010.
Subsequent to the closing of the acquisition, the lender for the mortgage loan advanced an
additional $3.5 million in loan proceeds resulting in an outstanding balance of $22.5
million. Concurrent with the increase in loan proceeds, the interest rate was re-set to a
fixed rate of 5.11%. The additional loan proceeds were used to repay amounts outstanding under our credit facility. The property contains
approximately 115,000 net rentable square feet of space and was 97% leased to 27 tenants at
the time of acquisition.
 27




---



##### 




    
    On February 16, 2006, we completed a $24.3 million, ten-year mortgage financing at a
rate of 5.53% per annum that matures in March 2016. The financing requires monthly
payments of interest-only at a fixed interest rate of 5.53% through March 2012 and monthly
payments of principal and interest from April 2012 through February 2016 based on a fixed
interest rate of 5.53% and a 360 month amortization schedule. The financing is secured by
our leasehold interest in Park Plaza II.
    
    On May 23, 2006 we completed the acquisition of 1741 Business Center Drive in Reston,
Virginia (the Chubb Building, as defined in note 4 to the financial
statements) for a purchase price of approximately $11.5 million, net of transaction costs.
The purchase price excludes approximately $950,000 of costs associated with the defeasance
of existing property level financing at the time of closing. The transaction was
initially funded with borrowings under our credit facility. Subsequently, on July 5,
2006, we completed an $8.1 million, five-year debt financing that matures in August 2011
and is secured by a mortgage deed of trust on the property. The financing requires
monthly payments of interest-only at a fixed rate interest rate of 6.11%. The property
contains approximately 41,400 net rentable square feet of space and was 100% leased to a
single tenant at the time of acquisition.
     28




---



##### 



Subsequent Events
    Our Business Strategy
  
    
    Investing in Small-to-Medium Size Office Buildings.We invest principally in
small-to-medium size office properties with an initial cost between $10 and $60 million as
we believe these properties present opportunities for attractive, risk-adjusted returns
due to the lower degree of institutional focus on this segment of the office market.
    
    Selective and Strategic Geographic Focus. We focus primarily on the Greater
Washington, D.C. commercial office property market to take advantage of the strong
economic and demographic characteristics of that market, leverage our local market
expertise and relationships and create economies of scale through the clustering of
properties.
    
    Intensive and Efficient Asset Management.We intensively manage each of our
properties through active property leasing and targeted capital improvements, which may
include re-positioning or redeveloping certain properties, while maintaining efficiency through the
outsourcing of non-strategic property functions.
 29




---



##### 




    
    Strategic Joint Ventures.We selectively enter into joint ventures where appropriate
to leverage our equity returns through fees and disproportionate cash flow distributions,
as well as manage the risks associated with certain properties that may be inappropriate
to wholly own due to size or vacancy levels.
    
    Recycling Capital.We evaluate individual properties in our portfolio to assess their
future potential growth against current market values. If we believe that we have
maximized a propertys value potential, we will look to sell or recapitalize the property
and reinvest the profit generated from the sale or recapitalization into new investments
that offer improved earnings potential for our stockholders.
    
    Maintain Investment Flexibility. When the market for new acquisitions remains
competitive, we will consider allocating additional capital into development and
alternative investment structures, including equity joint ventures and mezzanine debt,
which may offer investment yields above those provided through wholly owned property
acquisitions. In addition, we will consider investments in contiguous markets, as well as
investments in mixed-use properties, that provide an appropriate investment yield premium.
 Office Market Commentary
   
    
    Market-wide office vacancy levels remained low increasing slightly to 9.3% at June 30,
2006. This compares to vacancy rates of 9.0% at March 31, 2006; 9.2% at December 31, 2005;
9.7% at September 30, 2005; and 10.0% at June 30, 2005.
    
    Vacancy levels by region at June 30, 2006 stood at 7.6% for the District of Columbia;
9.7% for suburban Maryland; and 10.3% for northern Virginia.
    
    The average quoted asking rental rate for all classes of available office space was
$31.51 at June 30, 2006, representing a 4.6% increase in quoted rental rates from $30.14
at June 30, 2005.
    
    There was approximately 16.2 million square feet of office space under construction at
March 31, 2006, represented by 6.5 million square feet in the District of Columbia, 8.3
million square feet in northern Virginia and 1.4 million square feet in suburban Maryland.
This compares to a total of 12.2 million square feet of office space under construction
at March 31, 2005.
   30




---



##### 



31




---



##### 



Our ProRata Shareof TotalAnnualizedYear
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Rent as a %Acquired
    
    
    
    
    Net Rentable
    
    
    Occupancy
    
    
    Total
    
    
    of our TotalOwnership
    
    
    
    
    
    
    
    
    by Columbia
    
    
    Year Built/
    
    Area
    
    
    at
    
    
    Annualized
    
    
    AnnualizedProperty (1)
    
    Interest
    
    
    Tenancy
    
    
    Market
    
    or Predecessor
    
    
    Renovated
    
    (Square Feet)
    
    
    June 30, 2006
    
    
    Rent (2)
    
    
    Rent (3)1025 Vermont Avenue
    
    
    100
    %
    
    Multi-Tenant
    
    Washington, D.C.
    
    
    2006
    
    
    1964 - 2003
    
    
    114,801
    
    
    
    97
    %
    
    $
    3,654,060
    
    
    
    9.6
    %1741 Business Cntr. Dr.
    
    
    100
    %
    
    Single Tenant
    
    Northern Virginia
    
    
    2006
    
    
    2000
    
    
    41,358
    
    
    
    100
    %
    
    
    957,204
    
    
    
    2.5
    %14700 Lee Road
    
    
    100
    %
    
    Single Tenant
    
    Northern Virginia
    
    
    2005
    
    
    2000
    
    
    84,652
    
    
    
    100
    %
    
    
    2,126,280
    
    
    
    5.6
    %Fair Oaks
    
    
    100
    %
    
    Multi-Tenant
    
    Northern Virginia
    
    
    2001
    
    
    1985
    
    
    126,949
    
    
    
    91
    %
    
    
    2,536,356
    
    
    
    6.7
    %Greenbriar
    
    
    100
    %
    
    Multi-Tenant
    
    Northern Virginia
    
    
    2001
    
    
    1985 - 1998
    
    
    111,721
    
    
    
    88
    %
    
    
    2,126,520
    
    
    
    5.6
    %Loudoun Gateway IV
    
    
    100
    %
    
    Single Tenant
    
    Northern Virginia
    
    
    2005
    
    
    2002
    
    
    102,987
    
    
    
    100
    %
    
    
    1,563,096
    
    
    
    4.1
    %Meadows IV
    
    
    100
    %
    
    Multi-Tenant
    
    Northern Virginia
    
    
    2004
    
    
    1988 - 1997
    
    
    148,160
    
    
    
    100
    %
    
    
    3,315,216
    
    
    
    8.7
    %Oakton
    
    
    100
    %
    
    Multi-Tenant
    
    Northern Virginia
    
    
    2005
    
    
    1985
    
    
    64,648
    
    
    
    100
    %
    
    
    1,710,924
    
    
    
    4.5
    %Park Plaza II (4)
    
    
    100
    %
    
    Multi-Tenant
    
    Suburban Maryland
    
    
    2005
    
    
    2001
    
    
    126,228
    
    
    
    100
    %
    
    
    3,820,104
    
    
    
    10.1
    %Patrick Henry
    
    
    100
    %
    
    Multi-Tenant
    
    Newport News, VA
    
    
    2005
    
    
    1989
    
    
    98,883
    
    
    
    94
    %
    
    
    1,810,296
    
    
    
    4.8
    %Sherwood Plaza
    
    
    100
    %
    
    Multi-Tenant
    
    Northern Virginia
    
    
    2000
    
    
    1984
    
    
    92,960
    
    
    
    100
    %
    
    
    2,061,312
    
    
    
    5.4
    %King Street
    
    
    50
    %
    
    Multi-Tenant
    
    Northern Virginia
    
    
    1999
    
    
    1984 - 2004
    
    
    149,080
    
    
    
    85
    %
    
    
    3,814,644
    
    
    
    5.0
    %Madison Place
    
    
    50
    %
    
    Multi-Tenant
    
    Northern Virginia
    
    
    2003
    
    
    1989
    
    
    108,252
    
    
    
    83
    %
    
    
    2,485,884
    
    
    
    3.3
    %Barlow Building
    
    
    40
    %
    
    Multi-Tenant
    
    Suburban Maryland
    
    
    2005
    
    
    1966 - 2001
    
    
    270,562
    
    
    
    95
    %
    
    
    9,125,868
    
    
    
    9.6
    %Atrium Building
    
    
    37
    %
    
    Multi-Tenant
    
    Northern Virginia
    
    
    2004
    
    
    1978 - 1999
    
    
    138,507
    
    
    
    100
    %
    
    
    4,027,872
    
    
    
    3.9
    %Suffolk Building
    
    
    37
    %
    
    Single Tenant
    
    Northern Virginia
    
    
    2005
    
    
    1964 - 2003
    
    
    257,425
    
    
    
    100
    %
    
    
    6,381,528
    
    
    
    6.1
    %Independence Center
    
    
    15
    %
    
    Multi-Tenant
    
    Northern Virginia
    
    
    2002
    
    
    1999
    
    
    275,002
    
    
    
    92
    %
    
    
    5,797,932
    
    
    
    2.3
    %1575 Eye Street
    
    
    9
    %
    
    Multi-Tenant
    
    Washington, D.C.
    
    
    2002
    
    
    1979
    
    
    210,372
    
    
    
    98
    %
    
    
    7,817,724
    
    
    
    2.0
    %Victory Point
    
    
    10
    %
    
    Multi-Tenant
    
    Northern Virginia
    
    
    2005
    
    
    1989 - 2005
    
    
    147,966
    
    
    
    17
    %
    
    
    673,181
    
    
    
    0.2
    %Total / Weighted Average
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,670,513
    
    
    
    91
    %
    
    $
    65,806,001
    
    
    
    100
    %
 
 (1)
    
    Information set forth in this table excludes our 8.1% ownership interest in the joint
venture that owns the Independence Center II development property.(2)
    
    Annualized rent is calculated by multiplying by a factor of twelve the actual
contractual monthly base rent at June 30, 2006 for each tenant. Total annualized rent
includes our joint venture partners pro rata share of contractual base rent.(3)
    
    Represents the percentage of our pro rata share of annualized rent (which is based
upon our percentage ownership interest in each property) divided by our total pro rata
share of annualized rent of our portfolio.(4)
    
    The property is subject to a ground lease with a remaining term, including extension
options, of approximately 70 years. Summary of Critical Accounting Policies and Estimates
  32




---



##### 



Revenue Recognition and Allowance for Doubtful Accounts Receivable
   Investments in Real Estate
    33




---



##### 



Investments in Unconsolidated Real Estate Entities
  Depreciation, Amortization and Impairment of Long-Lived Assets
   34




---



##### 



Results of Operations
  Comparison of Three Months Ended June 30, 2006 to Three Months Ended June 30, 2005
 Base Rents
  Recoveries from Tenants
  Fee Income
  Property Operating Expenses
  35




---



##### 



Utility Expenses
  Real Estate Taxes and Insurance Expenses
  General and Administrative Expenses
  Depreciation and Amortization Expenses
  Interest Income
  36




---



##### 



Interest Expense
  Equity in Net Income of Unconsolidated Real Estate Entities
  Minority Interest
  Net Income
  Comparison of Six Months Ended June 30, 2006 to Six Months Ended June 30, 2005
 Base Rents
  Recoveries from Tenants
  37




---



##### 



Fee Income
  Property Operating Expenses
  Utility Expenses
  Real Estate Taxes and Insurance Expenses
  General and Administrative Expenses
  38




---



##### 



Depreciation and Amortization Expenses
  Interest Income
  Interest Expense
  Equity in Net Income (Loss) of Unconsolidated Real Estate Entities
  Minority Interest
  Net Income
  39




---



##### 



Consolidated Cash Flows
    Liquidity and Capital Resources
  Short-term Liquidity
  
    
    recurring maintenance, repairs and other operating expenses necessary to
properly maintain our properties;
    
    property taxes and insurance expenses;
    
    interest expense and scheduled principal payments on outstanding indebtedness;
    
    capital expenditures incurred to facilitate the leasing of space at our
properties, including tenant improvements and leasing commissions;
 40




---



##### 




    
    general and administrative expenses; and
    
    distributions to our stockholders and operating partnership unit holders.
  Long-term Liquidity
     41




---



##### 



Principal Balance
    
    
    Pro Rata Share ofas of
    
    
    Principal Balance as ofInterest Rate
    
    Maturity Date
    
    
    June 30, 2006
    
    
    June 30, 2006 (1)Consolidated Debt (2)Fixed
RatePatrick Henry
    
    5.02%
    
    
    4/1/2009
    
    
    $
    8,306,914
    
    
    $
    8,306,914Meadows IV
    
    4.95%
    
    
    11/1/2011
    
    
    
    19,000,000
    
    
    
    19,000,000Park Plaza II
    
    5.53%
    
    
    3/4/2016
    
    
    
    24,290,000
    
    
    
    24,290,0001025 Vermont Avenue
    
    5.11%
    
    
    1/1/2010
    
    
    
    22,500,000
    
    
    
    22,500,000Floating RateCredit Facility
    
    LIBOR + 1.10 - 1.35%
    
    
    11/28/2007
    
    
    
    21,450,000
    
    
    
    21,450,000Subtotal
    
    
    
    
    
    
    
    
    95,546,914
    
    
    
    95,546,914Unconsolidated Debt (2)Fixed RateKing Street
    
    5.06%
    
    
    3/1/2008
    
    
    
    21,392,574
    
    
    
    10,696,287Madison Place
    
    4.49%
    
    
    8/1/2008
    
    
    
    15,185,385
    
    
    
    7,592,6931575 Eye Street
    
    6.82%
    
    
    3/1/2009
    
    
    
    42,454,939
    
    
    
    3,893,118Independence Center I
    
    5.04%
    
    
    9/10/2009
    
    
    
    30,685,373
    
    
    
    4,523,024Independence Center II
    
    6.02%
    
    
    9/10/2009
    
    
    
    9,113,969
    
    
    
    738,231Barlow Building
    
    5.04%
    
    
    8/1/2012
    
    
    
    61,750,000
    
    
    
    24,700,000Atrium  Loan # 1
    
    8.43%
    
    
    9/1/2012
    
    
    
    17,870,692
    
    
    
    6,612,156Atrium  Loan # 2
    
    6.21%
    
    
    9/1/2012
    
    
    
    5,776,907
    
    
    
    2,137,456Suffolk
    
    5.10%
    
    
    5/4/2015
    
    
    
    42,000,000
    
    
    
    15,330,000Floating RateVictory Point
    
    LIBOR + 2.95%
    
    
    3/31/2008
    
    
    
    18,152,530
    
    
    
    1,815,253Subtotal
    
    
    
    
    
    
    
    
    264,382,369
    
    
    
    78,038,218Total
    
    
    
    
    
    
    
    $
    359,929,283
    
    
    $
    173,585,132
 
 (1)
    
    Principal amount multiplied by our percentage interest in the joint venture entity that
owns the property.(2)
    
    With the exception of a limited guarantee in the amount of approximately $737,000 for
the debt at our Independence Center II property, our pro rata share of unconsolidated debt
is non-recourse to us and is collateralized by the real estate properties held by the
joint venture entities.  42




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##### 



Unconsolidated Investments and Joint Ventures
    
    
    Absence of exclusive control over the development, financing, leasing, management and
other aspects of the project; and
    
    Possibility that our co-venturer or partner might:
 
    
    become bankrupt;
    
    have interests or goals that are inconsistent with ours;
    
    take action contrary to our instructions, requests or interests
(including those related to our qualification as a REIT for tax purposes); or
    
    otherwise impede our objectives; and
 
    
    Possibility that we may elect to fund losses of the joint venture.
 Off Balance Sheet Arrangements
    43




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##### 



Cash Distribution Policy
  Inflation
  Geographic Concentration
  Funds From Operations
  44




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##### 



Three months
    
    
    Six monthsended
    
    
    endedJune 30, 2006
    
    
    June 30, 2006Net loss
    
    $
    (1,098,338
    )
    
    $
    (2,110,087
    )AdjustmentsMinority interests
    
    
    (84,152
    )
    
    
    (159,654
    )Depreciation and amortization  consolidated entities
    
    
    3,542,235
    
    
    
    6,995,436Depreciation and amortization  unconsolidated entities
    
    
    1,431,860
    
    
    
    2,855,536Funds from operations
    
    $
    3,791,605
    
    
    $
    7,581,231
 
 Item 3. Quantitative and Qualitative Disclosure About Market Risk
     45




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##### 



Item 4. Controls and Procedures
 Evaluation of Disclosure Controls and Procedures
  Changes in Internal Control Over Financial Reporting
  46




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##### 



PART II  OTHER INFORMATION
 
 Item 1A. Risk Factors
  
 Item 4. Submission of Matters to a Vote of Security Holders.
  Votes AgainstName
    
    Votes For
    
    or Withheld
    
    TotalOliver T. Carr, III
    
    
    13,151,303
    
    
    
    159,519
    
    
    
    13,310,822Bruce M. Johnson
    
    
    13,068,230
    
    
    
    242,592
    
    
    
    13,310,822Robert J. McGovern
    
    
    13,243,622
    
    
    
    67,200
    
    
    
    13,310,822Rebecca L. Owen
    
    
    13,301,912
    
    
    
    8,910
    
    
    
    13,310,822John A. Schissel
    
    
    13,243,622
    
    
    
    67,200
    
    
    
    13,310,822Hal A. Vasvari
    
    
    13,133,630
    
    
    
    177,192
    
    
    
    13,310,822Thomas A. Young, Jr.
    
    
    12,925,466
    
    
    
    385,356
    
    
    
    13,310,822
 
 Item 6. Exhibits.
 3.1
    
    Articles of Amendment and Restatement of the Registrant (incorporated by reference to Exhibit 3.1
to the Companys Registration Statement on Form S-11/A (Registration No. 333-122644) filed on June
28, 2005).3.2
    
    Amended and Restated Bylaws of the Registrant (incorporated by reference to Exhibit 3.2 to the
Companys Registration Statement on Form S-11/A (Registration No. 333-122644) filed on June 28,
2005).4.1
    
    Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registrants
Quarterly Report on Form 10-Q filed on November 14, 2005).4.2
    
    Amended and Restated Agreement of Limited Partnership of Columbia Equity, LP (incorporated by
reference to Exhibit 3.3 to the Companys Registration Statement on Form S-11/A (Registration No.
333-122644) filed on June 28, 2005).10.1
    
    Agreement of Purchase and Sale, by and between Foulger Land Limited Partnership, Argo Orchard
Ridge Manager, Inc., Argo Investment Company and Columbia Equity Trust, Inc., dated April 25, 2006
(incorporated by reference to Exhibit 10.8 to the Registrants Quarterly Report on Form 10-Q filed
on May 15, 2006).31.1
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Chief Executive Officer.31.2
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Chief Financial Officer.32.1
    
    Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Chief Executive Officer
and Chief Financial Officer.
 47




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##### 



SIGNATURES
  COLUMBIA EQUITY TRUST, INC.Date: August 14, 2006
    By:
    /s/ Oliver T. Carr, IIIOliver T. Carr, IIIPresident and Chief Executive OfficerDate: August 14, 2006
    By:
    /s/ John A. SchisselJohn A. SchisselExecutive Vice President and Chief
Financial Officer 48




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##### 



EXHIBIT INDEX
 No.
    
    Description3.1
    
    Articles of Amendment and Restatement of the Registrant (incorporated by reference to Exhibit 3.1
to the Companys Registration Statement on Form S-11/A (Registration No. 333-122644) filed on June
28, 2005).3.2
    
    Amended and Restated Bylaws of the Registrant (incorporated by reference to Exhibit 3.2 to the
Companys Registration Statement on Form S-11/A (Registration No. 333-122644) filed on June 28,
2005).4.1
    
    Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registrants
Quarterly Report on Form 10-Q filed on November 14, 2005).4.2
    
    Amended and Restated Agreement of Limited Partnership of Columbia Equity, LP (incorporated by
reference to Exhibit 3.3 to the Companys Registration Statement on Form S-11/A (Registration No.
333-122644) filed on June 28, 2005).10.1
    
    Agreement of Purchase and Sale, by and between Foulger Land Limited Partnership, Argo Orchard
Ridge Manager, Inc., Argo Investment Company and Columbia Equity Trust, Inc., dated April 25, 2006
(incorporated by reference to Exhibit 10.8 to the Registrants Quarterly Report on Form 10-Q filed
on May 15, 2006).31.1
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Chief Executive Officer.31.2
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Chief Financial Officer.32.1
    
    Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Chief Executive Officer
and Chief Financial Officer.
 49