##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-Q


QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended September 30, 2005


COMMISSION FILE NO. 001-32536


COLUMBIA EQUITY TRUST, INC.


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                            
|------------------------------------------------------------------ |  | -------------------------------------------
|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(Zip code)                            
|(Address of principal executive office)                            |  |                                            

(202) 303-3080


(Registrants telephone number, including area code)


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o þ


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COLUMBIA EQUITY TRUST, INC.


Form 10-Q


TABLE OF CONTENTS


|                                   |  |                                                                                                                                                                                                                                                                                                                                   |    |      |    | 
|---------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|                                   |  |                                                                                                                                                                                                                                                                                                                                   |    | Page |   
|                                   |  |                                                                                                                                                                                                                                                                                                                                   |    |      |   
|PART I  FINANCIAL
    INFORMATION
|Item 1.                            |  | Financial Statements                                                                                                                                                                                                                                                                                                              |    |      |    | 
|                                   |  | Balance Sheets as of September 30,
    2005 (unaudited) and December 31, 2004
    (unaudited) for Columbia Equity Trust, Inc. and as of
    December 31, 2004 for Columbia Predecessor                                                                                                                                            |    |      | 3  | 
|                                   |  | Statements of Operations for the period
    July 5, 2005 through September 30, 2005
    (unaudited) for Columbia Equity Trust, Inc., for the period
    July 1, 2005 through July 4, 2005 (unaudited) for
    Columbia Predecessor and for the three months ended
    September 30, 2004 (unaudited) for Columbia
    Predecessor |    |      | 4  | 
|                                   |  | Statements of Operations for the nine
    months ended September 30, 2005 (unaudited) for
    Columbia Equity Trust, Inc., for the period January 1, 2005
    through July 4, 2005 (unaudited) for Columbia
    Predecessor and for the nine months ended September 30,
    2004 (unaudited) for Columbia Predecessor             |    |      | 5  | 
|                                   |  | Statements of Cash Flows for the nine
    months ended September 30, 2005 (unaudited) for
    Columbia Equity Trust, Inc., for the period January 1, 2005
    through July 4, 2005 (unaudited) for Columbia
    Predecessor and for the nine months ended September 30,
    2004 (unaudited) for Columbia Predecessor             |    |      | 6  | 
|Item 2.                            |  | Managements Discussion and Analysis of Financial Condition
    and Results of Operations                                                                                                                                                                                                                                         |    |      | 20 | 
|Item 3.                            |  | Quantitative and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                                                        |    |      | 33 | 
|Item 4.                            |  | Controls and Procedures                                                                                                                                                                                                                                                                                                           |    |      | 33 | 
|PART II  OTHER
    INFORMATION   
|Item 2.                            |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                                       |    |      | 34 | 
|Item 6.                            |  | Exhibits                                                                                                                                                                                                                                                                                                                          |    |      | 35 | 
|SIGNATURES                         |  |                                                                                                                                                                                                                                                                                                                                   | 36 |     
|EXHIBIT INDEX                      |  |                                                                                                                                                                                                                                                                                                                                   | 37 |     
|EX-4.1                            
|EX-10.1                           
|EX-10.2                           
|EX-10.3                           
|EX-10.4                           
|EX-10.5                           
|EX-10.6                           
|EX-10.7                           
|Ex-10.8                           
|EX-10.9                           
|EX-31.1                           
|EX-31.2                           
|EX-32.1                           



1



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##### Table of Contents






PART I  FINANCIAL INFORMATION







|        |                     
|------- | --------------------
|Item 1. | Financial Statements







2



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##### Table of Contents



COLUMBIA EQUITY TRUST, INC.


AND COLUMBIA EQUITY TRUST, INC. PREDECESSOR





CONSOLIDATED AND COMBINED BALANCE SHEETS


|                                                                                                                                   |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |   |  |           |           |           | 
|---------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ----------- | ----------- | ----------------- |  | -------- | ----------------- | - |  | --------- | --------- | --------- | 
|                                                                                                                                   |                                                                                                                                                                            | Consolidated                               |             |             |                   |  | Combined |                  
|                                                                                                                                   |                                                                                                                                                                            | Columbia Equity                            |             |             | Columbia Equity   |  |          | Columbia          |  
|                                                                                                                                   |                                                                                                                                                                            | Trust, Inc.                                |             |             | Trust, Inc.       |  |          | Predecessor       |  
|                                                                                                                                   |                                                                                                                                                                            | September 30, 2005                         |             |             | December 31, 2004 |  |          | December 31, 2004 |  
|                                                                                                                                   |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |  
|                                                                                                                                   |                                                                                                                                                                            | (Unaudited)                                |             |             | (Unaudited)       |  |          |                  
|ASSETS                                                                                                                            
|Rental property                                                                                                                    |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |   |  |           |          
|                                                                                                                                   | Land                                                                                                                                                                       |                                            | $           | 15,705,910  |                   |  | $        |                  |   |  | $         |          |          
|                                                                                                                                   | Buildings                                                                                                                                                                  |                                            |             | 100,229,797 |                   |  |          |                  |   |  |           |          |          
|                                                                                                                                   | Tenant improvements                                                                                                                                                        |                                            |             | 21,169,385  |                   |  |          |                  |   |  |           |          |          
|                                                                                                                                   | Furniture, fixtures and equipment                                                                                                                                          |                                            |             | 1,086,105   |                   |  |          |                  |   |  |           |          |          
|                                                                                                                                   |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |  
|                                                                                                                                   |                                                                                                                                                                            |                                            | 138,191,197 |             |                   |  |         |                   |   |  |          |          
|                                                                                                                                   | Accumulated depreciation                                                                                                                                                   |                                            |             | (1,119,138  | )                 |  |          |                  |   |  |           |          |          
|                                                                                                                                   |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |  
|                                                                                                                                   |                                                                                                                                                                            | Total rental property, net                 |             |             | 137,072,059       |  |          |                   |  |  |           |           |          | 
|                                                                                                                                  
|Cash and cash equivalents                                                                                                          |                                                                                                                                                                            |                                            | 3,478,580   |             |                   |  |         |                   |   |  | 1,188,146 |          
|Short-term investments                                                                                                             |                                                                                                                                                                            |                                            | 5,175,032   |             |                   |  |         |                   |   |  |          |          
|Restricted deposits                                                                                                                |                                                                                                                                                                            |                                            | 144,588     |             |                   |  |         |                   |   |  |          |          
|Accounts and other receivables, net of reserves for doubtful
    accounts of $59,417, $0 and $56,887 for the periods, respectively |                                                                                                                                                                            |                                            | 741,067     |             |                   |  |         |                   |   |  | 185,864   |          
|Due from related parties                                                                                                           |                                                                                                                                                                            |                                            |            |             |                   |  |         |                   |   |  | 140,000   |          
|Investments in unconsolidated real estate entities                                                                                 |                                                                                                                                                                            |                                            | 43,420,514  |             |                   |  |         |                   |   |  | 4,189,766 |          
|Accrued straight-line rents                                                                                                        |                                                                                                                                                                            |                                            | 230,261     |             |                   |  |         |                   |   |  |          |          
|Deferred leasing costs, net                                                                                                        |                                                                                                                                                                            |                                            | 319,402     |             |                   |  |         |                   |   |  |          |          
|Deferred financing costs, net                                                                                                      |                                                                                                                                                                            |                                            | 25,000      |             |                   |  |         |                   |   |  |          |          
|Intangible assets                                                                                                                  |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |   |  |           |          
|                                                                                                                                   | Above market leases, net                                                                                                                                                   |                                            |             | 3,510,038   |                   |  |          |                  |   |  |           |          |          
|                                                                                                                                   | In-place leases, net                                                                                                                                                       |                                            |             | 13,389,323  |                   |  |          |                  |   |  |           |          |          
|                                                                                                                                   | Tenant relationships, net                                                                                                                                                  |                                            |             | 5,423,970   |                   |  |          |                  |   |  |           |          |          
|Deferred offering costs                                                                                                            |                                                                                                                                                                            |                                            |            |             |                   |  |         |                   |   |  | 1,172,964 |          
|Prepaid expenses and other assets                                                                                                  |                                                                                                                                                                            |                                            | 1,245,460   |             |                   |  |         |                   |   |  | 137,030   |          
|                                                                                                                                   |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |  
|                                                                                                                                   |                                                                                                                                                                            | Total assets                               |             | $           | 214,175,294       |  |          | $                 |  |  |           | $         | 7,013,770 | 
|                                                                                                                                   |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |  
|                                                                                                                                  
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                              
|Liabilities                                                                                                                        |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |   |  |           |          
|                                                                                                                                   | Mortgage note payable                                                                                                                                                      |                                            | $           | 19,000,000  |                   |  | $        |                  |   |  | $         |          |          
|                                                                                                                                   | Accounts payable and accrued expenses                                                                                                                                      |                                            |             | 1,835,452   |                   |  |          |                  |   |  |           | 1,124,258 |          
|                                                                                                                                   | Profit sharing plan contribution payable                                                                                                                                   |                                            |             |            |                   |  |          |                  |   |  |           | 100,000   |          
|                                                                                                                                   | Accrued interest payable to stockholders                                                                                                                                   |                                            |             |            |                   |  |          |                  |   |  |           | 77,232    |          
|                                                                                                                                   | Notes payable to stockholders                                                                                                                                              |                                            |             |            |                   |  |          |                  |   |  |           | 90,000    |          
|                                                                                                                                   | Dividends payable                                                                                                                                                          |                                            |             | 1,663,600   |                   |  |          |                  |   |  |           |          |          
|                                                                                                                                   | Security deposits                                                                                                                                                          |                                            |             | 937,390     |                   |  |          |                  |   |  |           |          |          
|                                                                                                                                   | Rent received in advance                                                                                                                                                   |                                            |             | 426,983     |                   |  |          |                  |   |  |           |          |          
|                                                                                                                                   | Deferred credits  Below market leases, net                                                                                                                                |                                            |             | 1,050,572   |                   |  |          |                  |   |  |           |          |          
|                                                                                                                                   |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |  
|                                                                                                                                   |                                                                                                                                                                            | Total liabilities                          |             |             | 24,913,997        |  |          |                   |  |  |           |           | 1,391,490 | 
|Commitments and contingencies                                                                                                      |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |   |  |           |          
|Minority interest                                                                                                                  |                                                                                                                                                                            |                                            | 14,225,522  |             |                   |  |         |                   |   |  |          |          
|                                                                                                                                   |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |  
|Stockholders equity                                                                                                               |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |   |  |           |          
|                                                                                                                                   | Preferred stock, $0.001 par value, 100,000,000 and
    0 shares authorized in 2005 and 2004, respectively,
    0 shares issued or outstanding in either period             |                                            |             |            |                   |  |          |                  |   |  |           |          |          
|                                                                                                                                   | Common stock, $0.001 par value, 500,000,000 and
    1,000 shares authorized, and 13,863,334 and
    1,000 shares issued and outstanding in 2005 and 2004,
    respectively |                                            |             | 13,863      |                   |  |          | 1                 |   |  |           |          |          
|                                                                                                                                   | Additional paid-in capital                                                                                                                                                 |                                            |             | 176,725,541 |                   |  |          | 999               |   |  |           |          |          
|                                                                                                                                   | Less  Common stock subscribed                                                                                                                                             |                                            |             |            |                   |  |          | (1,000            | ) |  |           |          |          
|                                                                                                                                   | Accumulated deficit                                                                                                                                                        |                                            |             | (1,703,629  | )                 |  |          |                  |   |  |           |          |          
|Accumulated equity  Columbia Predecessor                                                                                          |                                                                                                                                                                            |                                            |            |             |                   |  |         |                   |   |  | 5,622,280 |          
|                                                                                                                                   |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |  
|                                                                                                                                   |                                                                                                                                                                            | Total stockholders equity                 |             |             | 175,035,775       |  |          |                   |  |  |           |           | 5,622,280 | 
|                                                                                                                                   |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |  
|                                                                                                                                   |                                                                                                                                                                            | Total liabilities and stockholders equity |             | $           | 214,175,294       |  |          | $                 |  |  |           | $         | 7,013,770 | 
|                                                                                                                                   |                                                                                                                                                                            |                                            |             |             |                   |  |          |                   |  



3



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##### Table of Contents



COLUMBIA EQUITY TRUST, INC.


AND COLUMBIA EQUITY TRUST, INC. PREDECESSOR





CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS


For the Three Months Ended September 30, 2005 and
2004


|                                                                            |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |         |         |       |         |         |         | 
|--------------------------------------------------------------------------- | ---------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------- | ----------------- | --------- | ---------------------- | ---------- | - | ------------------- | ------- | ------- | ----- | ------- | ------- | ------- | 
|                                                                            |                                                                        |                                                                                                                                 |                   |           |                        | Combined   |  
|                                                                            |                                                                        | Consolidated                                                                                                                    |                   |           | Combined               |            |   | Columbia            |        
|                                                                            |                                                                        | Columbia Equity                                                                                                                 |                   |           | Columbia               |            |   | Predecessor for the |        
|                                                                            |                                                                        | Trust, Inc. for the                                                                                                             |                   |           | Predecessor for the    |            |   | Three Months        |        
|                                                                            |                                                                        | Period July 5, 2005 to                                                                                                          |                   |           | Period July 1, 2005 to |            |   | Ended               |        
|                                                                            |                                                                        | September 30, 2005                                                                                                              |                   |           | through July 4, 2005   |            |   | September 30, 2004  |        
|                                                                            |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |        
|                                                                            |                                                                        | (Unaudited)                                                                                                                     |                   |           | (Unaudited)            |            |   | (Unaudited)         |        
|Revenues                                                                    |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |         |         |       |        
|                                                                            | Base rents                                                             |                                                                                                                                 | $                 | 2,870,411 |                        |            | $ |                    |         |         | $     |        |        
|                                                                            | Recoveries from tenants                                                |                                                                                                                                 |                   | 143,404   |                        |            |   |                    |         |         |       |        |        
|                                                                            | Fee income, primarily from related parties                             |                                                                                                                                 |                   | 239,376   |                        |            |   |                    |         |         |       | 615,283 |        
|                                                                            | Parking and other income                                               |                                                                                                                                 |                   | 22,725    |                        |            |   |                    |         |         |       |        |        
|                                                                            |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |        
|                                                                            |                                                                        | Total revenues                                                                                                                  |                   |           | 3,275,916              |            |   |                     |        |         |       |         | 615,283 |        
|                                                                            |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |        
|Operating expenses                                                          |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |         |         |       |        
|                                                                            | Property operating                                                     |                                                                                                                                 |                   | 453,894   |                        |            |   |                    |         |         |       |        |        
|                                                                            | Utilities                                                              |                                                                                                                                 |                   | 227,586   |                        |            |   |                    |         |         |       |        |        
|                                                                            | Real estate taxes and insurance                                        |                                                                                                                                 |                   | 192,780   |                        |            |   |                    |         |         |       |        |        
|                                                                            | General and administrative                                             |                                                                                                                                 |                   | 910,156   |                        |            |   | 4,229               |         |         |       | 468,864 |        
|                                                                            | Share-based compensation cost                                          |                                                                                                                                 |                   | 1,700,060 |                        |            |   |                    |         |         |       |        |        
|                                                                            | Depreciation and amortization                                          |                                                                                                                                 |                   | 1,770,527 |                        |            |   | 25                  |         |         |       | 3,026   |        
|                                                                            |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |        
|                                                                            |                                                                        | Total operating expenses                                                                                                        |                   |           | 5,255,003              |            |   |                     | 4,254   |         |       |         | 471,890 |        
|                                                                            |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |        
|                                                                            |                                                                        | Operating income (loss)                                                                                                         |                   |           | (1,979,087             | )          |   |                     | (4,254  | )       |       |         | 143,393 |        
|Other income and expense                                                    |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |         |         |       |        
|                                                                            | Interest income                                                        |                                                                                                                                 |                   | 442,491   |                        |            |   | 1,572               |         |         |       | 3,980   |        
|                                                                            | Interest expense                                                       |                                                                                                                                 |                   | (229,150  | )                      |            |   | (97                 | )       |         |       | (2,250  | )      
|                                                                            |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |        
|                                                                            |                                                                        | Income (loss) before income taxes, equity in net income (loss)
    of unconsolidated real estate entities and minority interest |                   |           | (1,765,746             | )          |   |                     | (2,779  | )       |       |         | 145,123 |        
|                                                                            | Equity in net income (loss) of unconsolidated real estate
    entities |                                                                                                                                 |                   | (68,669   | )                      |            |   | (23,334             | )       |         |       | 262,128 |        
|                                                                            | Minority interest                                                      |                                                                                                                                 |                   | 131,486   |                        |            |   |                    |         |         |       |        |        
|                                                                            |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |        
|                                                                            |                                                                        | Income (loss) before income taxes                                                                                               |                   |           | (1,702,929             | )          |   |                     | (26,113 | )       |       |         | 407,251 |        
|Benefit for income taxes                                                    |                                                                        |                                                                                                                                 |                  |           |                        |            |  |                     |         |         | 3,061 |        
|                                                                            |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |        
|                                                                            |                                                                        |                                                                                                                                 | Net income (loss) |           | $                      | (1,702,929 | ) |                     | $       | (26,113 | )     |         | $       | 410,312 | 
|                                                                            |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |        
|Net loss per common share  Basic and diluted                               |                                                                        | $                                                                                                                               | (0.12             | )         |                        |            |   |                     |         |         |       |        
|                                                                            |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |        
|Weighted average shares of common stock outstanding 
    Basic and diluted |                                                                        |                                                                                                                                 | 13,679,243        |           |                        |            |   |                     |         |         |       |        
|                                                                            |                                                                        |                                                                                                                                 |                   |           |                        |            |   |                     |        



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##### Table of Contents



COLUMBIA EQUITY TRUST, INC.


AND COLUMBIA EQUITY TRUST, INC. PREDECESSOR





CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS


For the Nine Months Ended September 30, 2005 and 2004


|                                                                            |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |           |           |   |           |           |         | 
|--------------------------------------------------------------------------- | ---------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | ----------------- | --------- | -------------------- | ---------- | ------- | -------------------- | --------- | --------- | - | --------- | --------- | ------- | 
|                                                                            |                                                                        | Consolidated                                                                                                           |                   |           |                      |            |        
|                                                                            |                                                                        | Columbia Equity                                                                                                        |                   |           | Combined             |            |         | Combined             |          
|                                                                            |                                                                        | Trust, Inc. for the                                                                                                    |                   |           | Columbia Predecessor |            |         | Columbia Predecessor |          
|                                                                            |                                                                        | Nine Months                                                                                                            |                   |           | for the Period       |            |         | for the Nine Months  |          
|                                                                            |                                                                        | Ended                                                                                                                  |                   |           | January 1, 2005 to   |            |         | Ended                |          
|                                                                            |                                                                        | September 30, 2005                                                                                                     |                   |           | July 4, 2005         |            |         | September 30, 2004   |          
|                                                                            |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |          
|                                                                            |                                                                        | (Unaudited)                                                                                                            |                   |           | (Unaudited)          |            |         | (Unaudited)          |          
|Revenues                                                                    |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |           |           |   |          
|                                                                            | Base rents                                                             |                                                                                                                        | $                 | 2,870,411 |                      |            | $       |                     |           |           | $ |          |          
|                                                                            | Recoveries from tenants                                                |                                                                                                                        |                   | 143,404   |                      |            |         |                     |           |           |   |          |          
|                                                                            | Fee income, primarily from related parties                             |                                                                                                                        |                   | 239,376   |                      |            |         | 1,438,356            |           |           |   | 1,224,225 |          
|                                                                            | Parking and other income                                               |                                                                                                                        |                   | 22,725    |                      |            |         |                     |           |           |   |          |          
|                                                                            |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |          
|                                                                            |                                                                        | Total revenues                                                                                                         |                   |           | 3,275,916            |            |         |                      | 1,438,356 |           |   |           | 1,224,225 |        
|                                                                            |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |          
|Operating expenses                                                          |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |           |           |   |          
|                                                                            | Property operating                                                     |                                                                                                                        |                   | 453,894   |                      |            |         |                     |           |           |   |          |          
|                                                                            | Utilities                                                              |                                                                                                                        |                   | 227,586   |                      |            |         |                     |           |           |   |          |          
|                                                                            | Real estate taxes and insurance                                        |                                                                                                                        |                   | 192,780   |                      |            |         |                     |           |           |   |          |          
|                                                                            | General and administrative                                             |                                                                                                                        |                   | 910,856   |                      |            |         | 1,549,127            |           |           |   | 1,230,839 |          
|                                                                            | Share-based compensation cost                                          |                                                                                                                        |                   | 1,700,060 |                      |            |         |                     |           |           |   |          |          
|                                                                            | Depreciation and amortization                                          |                                                                                                                        |                   | 1,770,527 |                      |            |         | 7,385                |           |           |   | 8,348     |          
|                                                                            |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |          
|                                                                            |                                                                        | Total operating expenses                                                                                               |                   |           | 5,255,703            |            |         |                      | 1,556,512 |           |   |           | 1,239,187 |        
|                                                                            |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |          
|                                                                            |                                                                        | Operating loss                                                                                                         |                   |           | (1,979,787           | )          |         |                      | (118,156  | )         |   |           | (14,962   | )      
|Other income and expense                                                    |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |           |           |   |          
|                                                                            | Interest income                                                        |                                                                                                                        |                   | 442,491   |                      |            |         | 21,450               |           |           |   | 9,483     |          
|                                                                            | Interest expense                                                       |                                                                                                                        |                   | (229,150  | )                    |            |         | (4,597               | )         |           |   | (6,750    | )        
|                                                                            |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |          
|                                                                            |                                                                        | Loss before income taxes, equity in net income (loss) of
    unconsolidated real estate entities and minority interest |                   |           | (1,766,446           | )          |         |                      | (101,303  | )         |   |           | (12,229   | )      
|                                                                            | Equity in net income (loss) of unconsolidated real estate
    entities |                                                                                                                        |                   | (68,669   | )                    |            |         | 2,281,641            |           |           |   | 430,133   |          
|                                                                            | Minority interest                                                      |                                                                                                                        |                   | 131,486   |                      |            |         |                     |           |           |   |          |          
|                                                                            |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |          
|                                                                            |                                                                        | Income (loss) before income taxes                                                                                      |                   |           | (1,703,629           | )          |         |                      | 2,180,338 |           |   |           | 417,904   |        
|Provision for income taxes                                                  |                                                                        |                                                                                                                        |                  |           |                      |            | 231,884 |                      |           |           |  |          
|                                                                            |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |          
|                                                                            |                                                                        |                                                                                                                        | Net income (loss) |           | $                    | (1,703,629 | )       |                      | $         | 1,948,454 |   |           | $         | 417,904 | 
|                                                                            |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |          
|Net loss per common share  Basic and diluted                               |                                                                        | $                                                                                                                      | (0.12             | )         |                      |            |         |                      |           |           |   |          
|                                                                            |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |          
|Weighted average shares of common stock outstanding 
    Basic and diluted |                                                                        |                                                                                                                        | 13,679,243        |           |                      |            |         |                      |           |           |   |          
|                                                                            |                                                                        |                                                                                                                        |                   |           |                      |            |         |                      |          



5



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COLUMBIA EQUITY TRUST, INC.


AND COLUMBIA EQUITY TRUST, INC. PREDECESSOR





CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS


For the Nine Months Ended September 30, 2005 and 2004


|                                                     |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |            |            |           |          |          |          |        | 
|---------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------- | --------------------------------------------------- | --------------------------------------------------- | -------------------- | ------------ | --------- | ------------------- | ---------- | ---------- | --------- | -------- | -------- | -------- | ------ | 
|                                                     |                                                                                                       | Consolidated                                                                    |                                                     |                                                     | Combined             |              |           | Combined            |           
|                                                     |                                                                                                       | Columbia Equity                                                                 |                                                     |                                                     | Columbia             |              |           | Columbia            |           
|                                                     |                                                                                                       | Trust, Inc. for the                                                             |                                                     |                                                     | Predecessor for the  |              |           | Predecessor for the |           
|                                                     |                                                                                                       | Nine Months                                                                     |                                                     |                                                     | Period               |              |           | Nine Months         |           
|                                                     |                                                                                                       | Ended                                                                           |                                                     |                                                     | January 1, 2005 to   |              |           | Ended               |           
|                                                     |                                                                                                       | September 30, 2005                                                              |                                                     |                                                     | through July 4, 2005 |              |           | September 30, 2004  |           
|                                                     |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |           
|                                                     |                                                                                                       | (Unaudited)                                                                     |                                                     |                                                     | (Unaudited)          |              |           | (Unaudited)         |           
|Cash flows from operating activities                 |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |            |            |           |         
|                                                     | Net income (loss)                                                                                     |                                                                                 | $                                                   | (1,703,629                                          | )                    |              | $         | 1,948,454           |            |            | $         | 417,904  |         
|                                                     | Adjustments to reconcile net income (loss) to net cash provided
    by (used in) operating activities |                                                                                 |                                                     |                                                     |                      |              |           |                     |            |            |           |          |         
|                                                     |                                                                                                       | Minority interest                                                               |                                                     |                                                     | (131,486             | )            |           |                     |           |            |           |          |         |         
|                                                     |                                                                                                       | Equity in net income of unconsolidated real estate entities                     |                                                     |                                                     | 68,669               |              |           |                     | (2,281,641 | )          |           |          | (430,133 | )       
|                                                     |                                                                                                       | Compensation cost related to stock split                                        |                                                     |                                                     | 949,010              |              |           |                     |           |            |           |          |         |         
|                                                     |                                                                                                       | Compensation cost related to LTIP units                                         |                                                     |                                                     | 716,250              |              |           |                     |           |            |           |          |         |         
|                                                     |                                                                                                       | Distributions received from earnings of unconsolidated real
    estate entities |                                                     |                                                     | 48,918               |              |           |                     | 19,055     |            |           |          | 93,449   |         
|                                                     |                                                                                                       | Depreciation and amortization                                                   |                                                     |                                                     | 1,770,527            |              |           |                     | 7,385      |            |           |          | 8,348    |         
|                                                     |                                                                                                       | Amortization of above and below market leases                                   |                                                     |                                                     | 34,260               |              |           |                     |           |            |           |          |         |         
|                                                     |                                                                                                       | Changes in assets and liabilities                                               |                                                     |                                                     |                      |              |           |                     |            |            |           |          |          |         
|                                                     |                                                                                                       |                                                                                 | Accounts and other receivables                      |                                                     |                      | (433,815     | )         |                     |            | (36,505    | )         |          |          | (281,810 | )     
|                                                     |                                                                                                       |                                                                                 | Accrued straight-line rents                         |                                                     |                      | (230,261     | )         |                     |            |           |           |          |          |         |       
|                                                     |                                                                                                       |                                                                                 | Deferred leasing costs                              |                                                     |                      | (319,402     | )         |                     |            |           |           |          |          |         |       
|                                                     |                                                                                                       |                                                                                 | Deferred offering costs                             |                                                     |                      |             |           |                     |            | (2,693,176 | )         |          |          |         |       
|                                                     |                                                                                                       |                                                                                 | Prepaid expenses                                    |                                                     |                      | (447,225     | )         |                     |            | (440,020   | )         |          |          | (18,656  | )     
|                                                     |                                                                                                       |                                                                                 | Accounts payable and accrued expenses               |                                                     |                      | 699,751      |           |                     |            | 2,725,286  |           |          |          | 291,680  |       
|                                                     |                                                                                                       |                                                                                 | Profit sharing plan contribution payable            |                                                     |                      |             |           |                     |            |           |           |          |          | (57,769  | )     
|                                                     |                                                                                                       |                                                                                 | Accrued interest payable to stockholders            |                                                     |                      |             |           |                     |            | 4,597      |           |          |          | 6,750    |       
|                                                     |                                                                                                       |                                                                                 | Security deposits                                   |                                                     |                      | (66,977      | )         |                     |            |           |           |          |          |         |       
|                                                     |                                                                                                       |                                                                                 | Rent received in advance                            |                                                     |                      | (70,401      | )         |                     |            |           |           |          |          |         |       
|                                                     |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |           
|                                                     |                                                                                                       |                                                                                 |                                                     | Net cash provided by (used in) operating activities |                      |              | 884,189   |                     |            |            | (746,565  | )        |          |          | 29,763 | 
|                                                     |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |           
|Cash flows from investing activities                 |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |            |            |           |         
|                                                     | Purchases of interests in rental property                                                             |                                                                                 |                                                     | (96,917,274                                         | )                    |              |           |                    |            |            |           |         |         
|                                                     | Purchases of interests in unconsolidated real estate entities                                         |                                                                                 |                                                     | (41,950,254                                         | )                    |              |           |                    |            |            |           |         |         
|                                                     | Deposit on pending purchase of interest in rental property                                            |                                                                                 |                                                     | (500,000                                            | )                    |              |           |                     |            |            |           |          |         
|                                                     | Additions to rental properties                                                                        |                                                                                 |                                                     | (639,767                                            | )                    |              |           |                    |            |            |           |         |         
|                                                     | Additions to rental property furniture, fixtures and equipment                                        |                                                                                 |                                                     | (51,328                                             | )                    |              |           | (3,772              | )          |            |           | (11,297  | )       
|                                                     | Purchases of investment securities                                                                    |                                                                                 |                                                     | (202,162,032                                        | )                    |              |           |                    |            |            |           |         |         
|                                                     | Maturities and sales of investment securities                                                         |                                                                                 |                                                     | 196,987,000                                         |                      |              |           |                    |            |            |           |         |         
|                                                     | Restricted deposits                                                                                   |                                                                                 |                                                     | (144,588                                            | )                    |              |           |                    |            |            |           |         |         
|                                                     | Distributions in excess of net income received from real estate
    entities                          |                                                                                 |                                                     | 438,437                                             |                      |              |           | 2,707,753           |            |            |           | 507,189  |         
|                                                     | Contributions made to unconsolidated real estate entities                                             |                                                                                 |                                                     | (269,766                                            | )                    |              |           | (508,000            | )          |            |           | (502,000 | )       
|                                                     |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |           
|                                                     |                                                                                                       |                                                                                 | Net cash provided by (used in) investing activities |                                                     |                      | (145,209,572 | )         |                     |            | 2,195,981  |           |          |          | (6,108   | )     
|                                                     |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |           
|Cash flows from financing activities                 |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |            |            |           |         
|                                                     | Gross proceeds from initial public offering of common stock                                           |                                                                                 |                                                     | 207,000,000                                         |                      |              |           |                    |            |            |           |         |         
|                                                     | Payment of offering costs, underwriting discount and advisory
    fees                                |                                                                                 |                                                     | (18,543,369                                         | )                    |              |           |                    |            |            |           |         |         
|                                                     | Payment received for subscribed common stock                                                          |                                                                                 |                                                     | 1,000                                               |                      |              |           |                    |            |            |           |         |         
|                                                     | Repayment of mortgage loans and prepayment penalties                                                  |                                                                                 |                                                     | (40,653,668                                         | )                    |              |           |                    |            |            |           |         |         
|                                                     | Contributions                                                                                         |                                                                                 |                                                     |                                                    |                      |              |           | 250,000             |            |            |           | 250,000  |         
|                                                     | Distributions                                                                                         |                                                                                 |                                                     |                                                    |                      |              |           | (163,989            | )          |            |           | (628,354 | )       
|                                                     |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |           
|                                                     |                                                                                                       |                                                                                 | Net cash provided by (used in) financing activities |                                                     |                      | 147,803,963  |           |                     |            | 86,011     |           |          |          | (378,354 | )     
|                                                     |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |           
|Net increase (decrease) in cash and cash equivalents |                                                                                                       |                                                                                 | 3,478,580                                           |                                                     |                      |              | 1,535,427 |                     |            |            | (354,699  | )       
|Cash and cash equivalents, beginning of period       |                                                                                                       |                                                                                 |                                                    |                                                     |                      |              | 1,188,146 |                     |            |            | 1,751,244 |         
|                                                     |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |           
|Cash and cash equivalents, end of period             |                                                                                                       | $                                                                               | 3,478,580                                           |                                                     |                      | $            | 2,723,573 |                     |            | $          | 1,396,545 |         
|                                                     |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |           
|Supplemental disclosures                             |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |            |            |           |         
|                                                     | Cash paid for income taxes                                                                            |                                                                                 | $                                                   |                                                    |                      |              | $         |                    |            |            | $         |         |         
|                                                     |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |           
|                                                     | Cash paid for interest                                                                                |                                                                                 | $                                                   | 229,900                                             |                      |              | $         |                    |            |            | $         |         |         
|                                                     |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |           
|                                                     | Debt assumed in purchases of interests in rental property                                             |                                                                                 | $                                                   | 59,653,668                                          |                      |              | $         |                    |            |            | $         |         |         
|                                                     |                                                                                                       |                                                                                 |                                                     |                                                     |                      |              |           |                     |           



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##### Table of Contents



COLUMBIA EQUITY TRUST, INC. AND


COLUMBIA EQUITY TRUST, INC. PREDECESSOR


NOTES TO FINANCIAL STATEMENTS




|   |                                         
|-- | ----------------------------------------
|1. | Organization and Description of Business











|   |                                                                         
|-- | ------------------------------------------------------------------------
|2. | Basis of Presentation and Summary of Significant Accounting
    Policies



| |                                                                
| | ---------------------------------------------------------------
| | a)     Unaudited Interim
    Consolidated Financial Information



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COLUMBIA EQUITY TRUST, INC. AND


COLUMBIA EQUITY TRUST, INC. PREDECESSOR


NOTES TO FINANCIAL STATEMENTS  (Continued)






| |                                       
| | --------------------------------------
| | b)     Principles of
    Consolidation





| |                                     
| | ------------------------------------
| | c)     Cash and Cash
    Equivalents





| |                                               
| | ----------------------------------------------
| | d)     Fair Value of Financial
    Instruments





| |                           
| | --------------------------
| | e)     Revenue Recognition







| |                                          
| | -----------------------------------------
| | f)     Investments in Rental
    Property







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##### Table of Contents



COLUMBIA EQUITY TRUST, INC. AND


COLUMBIA EQUITY TRUST, INC. PREDECESSOR


NOTES TO FINANCIAL STATEMENTS  (Continued)




| |                                                              
| | -------------------------------------------------------------
| | g)     Investments in
    Unconsolidated Real Estate Entities









| |                         
| | ------------------------
| | h)     Minority Interest









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COLUMBIA EQUITY TRUST, INC. AND


COLUMBIA EQUITY TRUST, INC. PREDECESSOR


NOTES TO FINANCIAL STATEMENTS  (Continued)






| |                                    
| | -----------------------------------
| | i)     Share-Based
    Compensation





| |                                         
| | ----------------------------------------
| | j)     New Accounting
    Pronouncements









| |                    
| | -------------------
| | k)     Income Taxes



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COLUMBIA EQUITY TRUST, INC. AND


COLUMBIA EQUITY TRUST, INC. PREDECESSOR


NOTES TO FINANCIAL STATEMENTS  (Continued)






| |                                  
| | ---------------------------------
| | l)     Managements
    Estimates





| |                          
| | -------------------------
| | m)     Segment Disclosure





| |                                        
| | ---------------------------------------
| | n)     Concentration of Credit
    Risk





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COLUMBIA EQUITY TRUST, INC. AND


COLUMBIA EQUITY TRUST, INC. PREDECESSOR


NOTES TO FINANCIAL STATEMENTS  (Continued)




|   |                   
|-- | ------------------
|3. | Earnings Per Share



|                                     |  |                    |            |   |                    |   |            |  
|------------------------------------ |  | ------------------ | ---------- | - | ------------------ | - | ---------- | -
|                                     |  | Columbia Equity    |            |   | Columbia Equity    |  
|                                     |  | Trust, Inc.        |            |   | Trust, Inc.        |  
|                                     |  | for the Period     |            |   | Nine Months        |  
|                                     |  | July 5, 2005 to    |            |   | Ended              |  
|                                     |  | September 30, 2005 |            |   | September 30, 2005 |  
|                                     |  |                    |            |   |                    |  
|Net loss                             |  | $                  | (1,702,929 | ) |                    | $ | (1,703,629 | )
|                                     |  |                    |            |   |                    |  
|Weighted average shares outstanding  |  |                    | 13,679,243 |   |                    |   | 13,679,243 |  
|                                     |  |                    |            |   |                    |  
|Basic and diluted earnings per share |  | $                  | (0.12      | ) |                    | $ | (0.12      | )
|                                     |  |                    |            |   |                    |  



|   |               
|-- | --------------
|4. | Offering Costs





|   |            
|-- | -----------
|5. | Stock Split





|   |                             
|-- | ----------------------------
|6. | Acquisitions and Development



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COLUMBIA EQUITY TRUST, INC. AND


COLUMBIA EQUITY TRUST, INC. PREDECESSOR


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                   |  |                |  |        |         |  |          |  |         |                |  |   |             | 
|------------------ |  | -------------- |  | ------ | ------- |  | -------- |  | ------- | -------------- |  | - | ----------- | 
|                   |  |                |  | Square |         |  | Date     |  |         |               
|Property           |  | Location       |  | Feet   |         |  | Acquired |  |         | Purchase Price | 
|                   |  |                |  |        |         |  |          |  |         |                | 
|Fair Oaks          |  | Fairfax, Va.   |  |        | 126,949 |  |          |  | 7/5/05  |                |  | $ | 18,748,541  | 
|Greenbriar         |  | Fairfax, Va.   |  |        | 111,721 |  |          |  | 7/5/05  |                |  |   | 15,989,785  | 
|Lee Road           |  | Chantilly, Va. |  |        | 84,652  |  |          |  | 8/23/05 |                |  |   | 24,051,830  | 
|Loudoun Gateway IV |  | Dulles, Va.    |  |        | 102,987 |  |          |  | 7/8/05  |                |  |   | 21,635,924  | 
|Meadows IV         |  | Chantilly, Va. |  |        | 148,160 |  |          |  | 7/5/05  |                |  |   | 28,593,301  | 
|Park Plaza II      |  | Rockville, Md. |  |        | 126,228 |  |          |  | 9/29/05 |                |  |   | 35,343,269  | 
|Sherwood Plaza     |  | Fairfax, Va.   |  |        | 92,960  |  |          |  | 7/5/05  |                |  |   | 15,865,026  | 
|                   |  |                |  |        |         |  |          |  |         |                | 
|                   |  |                |  |        |         |  |          |  |         |                |  | $ | 160,227,676 | 
|                   |  |                |  |        |         |  |          |  |         |                | 





|                       |                           |                     |             |             |             | 
|---------------------- | ------------------------- | ------------------- | ----------- | ----------- | ----------- | 
|Rental property        |                           | $                   | 137,500,000 |            
|Intangible assets      |                           |                     | 23,062,000  |            
|Other assets           |                           |                     | 3,279,000   |            
|                       |                           |                     |            
|                       | Total assets acquired     |                     |             | 163,841,000 |            
|                       |                           |                     |            
|Mortgage notes payable |                           |                     | 59,654,000  |            
|Deferred credits       |                           |                     | 1,104,000   |            
|Other liabilities      |                           |                     | 2,509,000   |            
|                       |                           |                     |            
|                       | Total liabilities assumed |                     |             | 63,267,000  |            
|                       |                           |                     |            
|                       |                           | Net assets acquired |             | $           | 100,574,000 | 
|                       |                           |                     |            

13



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COLUMBIA EQUITY TRUST, INC. AND


COLUMBIA EQUITY TRUST, INC. PREDECESSOR


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                                              |  |                    |            |   |                    |   |            |  
|--------------------------------------------- |  | ------------------ | ---------- | - | ------------------ | - | ---------- | -
|                                              |  | Pro Forma          |            |   | Actual Results     |  
|                                              |  | for the Three      |            |   | for the Period     |  
|                                              |  | Months Ended       |            |   | July 5, 2005 to    |  
|                                              |  | September 30, 2005 |            |   | September 30, 2005 |  
|                                              |  |                    |            |   |                    |  
|Revenues                                      |  | $                  | 4,620,000  |   |                    | $ | 3,275,916  |  
|                                              |  |                    |            |   |                    |  
|Net loss                                      |  |                    | (1,553,000 | ) |                    | $ | (1,702,929 | )
|                                              |  |                    |            |   |                    |  
|Net loss per share                            |  | $                  | (0.11      | ) |                    | $ | (0.12      | )
|                                              |  |                    |            |   |                    |  
|Weighted average number of shares outstanding |  |                    | 13,679,243 |   |                    |   | 13,679,243 |  
|                                              |  |                    |            |   |                    |  



|   |                                                   
|-- | --------------------------------------------------
|7. | Investments in Unconsolidated Real Estate Entities



|                         |  |                   |  |        |           |  |          |  |         |          |  |   |            |  |  |  |        | 
|------------------------ |  | ----------------- |  | ------ | --------- |  | -------- |  | ------- | -------- |  | - | ---------- |  |  |  | ------ | 
|                         |  |                   |  | Square |           |  | Date     |  |         | Purchase |  |   | Percent    | 
|Property                 |  | Location          |  | Feet   |           |  | Acquired |  |         | Price    |  |   | Owned      | 
|                         |  |                   |  |        |           |  |          |  |         |          |  |   |            | 
|1575 Eye Street          |  | Washington, D.C.  |  |        | 210,372   |  |          |  | 7/5/05  |          |  | $ | 1,172,398  |  |  |  | 9.18%  | 
|Atrium                   |  | Alexandria, Va.   |  |        | 138,507   |  |          |  | 7/5/05  |          |  |   | 5,002,925  |  |  |  | 37.00% | 
|Barlow Building          |  | Chevy Chase, Md.  |  |        | 270,490   |  |          |  | 7/15/05 |          |  |   | 13,700,000 |  |  |  | 40.00% | 
|Independence Center  I  |  | Chantilly, Va.    |  |        | 275,002   |  |          |  | 7/5/05  |          |  |   | 2,539,006  |  |  |  | 14.74% | 
|Independence Center  II |  | Chantilly, Va.    |  |        | Land Only |  |          |  | 7/5/05  |          |  |   | 380,783    |  |  |  | 14.74% | 
|King Street              |  | Alexandria, Va.   |  |        | 149,080   |  |          |  | 7/5/05  |          |  |   | 4,009,252  |  |  |  | 50.00% | 
|Madison Place            |  | Alexandria, Va.   |  |        | 108,252   |  |          |  | 7/5/05  |          |  |   | 5,990,270  |  |  |  | 50.00% | 
|Suffolk Building         |  | Falls Church, Va. |  |        | 257,425   |  |          |  | 7/5/05  |          |  |   | 9,986,802  |  |  |  | 36.50% | 
|Victory Point            |  | Chantilly, Va.    |  |        | 147,743   |  |          |  | 7/5/05  |          |  |   | 925,335    |  |  |  | 10.00% | 
|                         |  |                   |  |        |           |  |          |  |         |          |  |   |            | 
|                         |  |                   |  |        |           |  |          |  |         |          |  | $ | 43,706,771 |  |  |  |        | 
|                         |  |                   |  |        |           |  |          |  |         |          |  |   |            | 



14



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##### Table of Contents



COLUMBIA EQUITY TRUST, INC. AND


COLUMBIA EQUITY TRUST, INC. PREDECESSOR


NOTES TO FINANCIAL STATEMENTS  (Continued)


Combined Condensed Balance Sheet as of September 30,
2005


|                       |                                         |                              |   |             |             | 
|---------------------- | --------------------------------------- | ---------------------------- | - | ----------- | ----------- | 
|Assets                 |                                         |                              |   |            
|                       | Investments in real estate              |                              | $ | 293,298,951 |            
|                       | Receivables and deferred rents          |                              |   | 7,575,342   |            
|                       | Other assets                            |                              |   | 50,547,278  |            
|                       |                                         |                              |  
|                       |                                         | Total assets                 |   | $           | 351,421,571 | 
|                       |                                         |                              |  
|Liabilities and Equity |                                         |                              |   |            
|                       | Mortgage loans                          |                              | $ | 253,855,054 |            
|                       | Other liabilities                       |                              |   | 15,544,247  |            
|                       | Equity  Columbia Equity Trust, Inc.(a) |                              |   | 36,158,006  |            
|                       | Equity  Other owners                   |                              |   | 45,864,264  |            
|                       |                                         |                              |  
|                       |                                         | Total liabilities and equity |   | $           | 351,421,571 | 
|                       |                                         |                              |  

Combined Condensed Statement of Operations for the


Three Months Ended September 30, 2005


|                          |                |   |            |            |  
|------------------------- | -------------- | - | ---------- | ---------- | -
|Revenues                  |                | $ | 10,704,127 |           
|                          |                |   |           
|Operating and other       |                |   | 5,668,666  |           
|Depreciation              |                |   | 2,039,355  |           
|Interest                  |                |   | 3,515,052  |           
|                          |                |   |           
|                          | Total expenses |   |            | 11,223,073 |  
|                          |                |   |           
|                          | Net loss       |   | $          | (518,946   | )
|                          |                |   |           
|Company share of net loss |                | $ | (68,669    | )         
|                          |                |   |           






|    |                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Amount is less than the amount shown as investments in
    unconsolidated real estate entities on the consolidated balance
    sheet as of September 30, 2005, due to purchase price paid
    in excess of book value in the underlying real estate entities.

15



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##### Table of Contents



COLUMBIA EQUITY TRUST, INC. AND


COLUMBIA EQUITY TRUST, INC. PREDECESSOR


NOTES TO FINANCIAL STATEMENTS  (Continued)




|   |                  
|-- | -----------------
|8. | Intangible Assets



Intangible Assets


|                             |  |   |            |  
|---------------------------- |  | - | ---------- | -
|Above market leases          |  | $ | 4,058,597  |  
|Accumulated
    amortization |  |   | (548,559   | )
|                             |  |   |           
|                             |  | $ | 3,510,038  |  
|                             |  |   |           
|In-Place leases              |  | $ | 14,538,308 |  
|Accumulated
    amortization |  |   | (1,148,985 | )
|                             |  |   |           
|                             |  | $ | 13,389,323 |  
|                             |  |   |           
|Tenant relationships         |  | $ | 6,356,198  |  
|Accumulated
    amortization |  |   | (932,228   | )
|                             |  |   |           
|                             |  | $ | 5,423,970  |  
|                             |  |   |           

Deferred Credits


|                             |  |   |           |  
|---------------------------- |  | - | --------- | -
|Below market leases          |  | $ | 1,690,876 |  
|Accumulated
    amortization |  |   | (640,304  | )
|                             |  |   |          
|                             |  | $ | 1,050,572 |  
|                             |  |   |          







|                        |  |   |         | 
|----------------------- |  | - | ------- | 
|2005 after July 5, 2005 |  | $ | 155,508 | 
|2006                    |  |   | 484,374 | 
|2007                    |  |   | 472,863 | 
|2008                    |  |   | 415,098 | 
|2009                    |  |   | 386,656 | 
|2010                    |  |   | 313,565 | 

16



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##### Table of Contents



COLUMBIA EQUITY TRUST, INC. AND


COLUMBIA EQUITY TRUST, INC. PREDECESSOR


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                        |  |   |           | 
|----------------------- |  | - | --------- | 
|2005 after July 5, 2005 |  | $ | 1,585,514 | 
|2006                    |  |   | 3,647,208 | 
|2007                    |  |   | 3,358,398 | 
|2008                    |  |   | 3,055,542 | 
|2009                    |  |   | 2,808,494 | 
|2010                    |  |   | 2,263,486 | 



|   |                      
|-- | ---------------------
|9. | Mortgage Note Payable





|    |                         
|--- | ------------------------
|10. | Equity Compensation Plan



|                |  |                          |         |              |            |  |        |            |  |   |         | 
|--------------- |  | ------------------------ | ------- | ------------ | ---------- |  | ------ | ---------- |  | - | ------- | 
|                |  | As of September 30, 2005 |        
|                |  |                          |        
|                |  |                          |         | Compensation |           
|                |  | LTIP Units               |         |              | LTIP Units |  |        | Expense    | 
|Recipient Class |  | Granted                  |         |              | Vested     |  |        | Recognized | 
|                |  |                          |         |              |            |  |        |            | 
|Directors       |  |                          | 20,000  |              |            |  | 20,000 |            |  | $ | 300,000 | 
|Consultants     |  |                          | 15,000  |              |            |  | 15,000 |            |  |   | 225,000 | 
|Employees       |  |                          | 255,000 |              |            |  |       |            |  |   | 191,250 | 
|                |  |                          |         |              |            |  |        |            | 
|                |  |                          | 290,000 |              |            |  | 35,000 |            |  | $ | 716,250 | 
|                |  |                          |         |              |            |  |        |            | 

17



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##### Table of Contents



COLUMBIA EQUITY TRUST, INC. AND


COLUMBIA EQUITY TRUST, INC. PREDECESSOR


NOTES TO FINANCIAL STATEMENTS  (Continued)




|    |                           
|--- | --------------------------
|11. | Related Party Transactions





| |                                                                                                                                                                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Company and Columbia Predecessor receive asset management
    fees from unconsolidated and affiliated real estate entities,
    including the unconsolidated real estate entities included in
    the accompanying consolidated and combined financial statements.
    Asset management fees range from 1 to 2 percent of gross rents
    collected.
|
| | CCC receives transaction advisory fees in connection with the
    purchase, sale or debt placement for certain properties that it
    manages or advises, including amounts earned from the uncombined
    real estate entities and from affiliates.                                                                                                    
|
| | The Company and Columbia Predecessor pay to rent office space
    from an affiliate and also pay monthly fees for office support
    services.                                                                                                                                                                                                          



|                        |  |                        |         |  |                        |   |     |                     |  |   |         | 
|----------------------- |  | ---------------------- | ------- |  | ---------------------- | - | --- | ------------------- |  | - | ------- | 
|                        |  | Columbia Equity        |         |  | Columbia               |   |     | Columbia            | 
|                        |  | Trust, Inc. for the    |         |  | Predecessor for the    |   |     | Predecessor for the | 
|                        |  | Period July 5, 2005 to |         |  | Period July 1, 2005 to |   |     | Three Months Ended  | 
|Service                 |  | September 30, 2005     |         |  | Through July 4, 2005   |   |     | September 30, 2004  | 
|                        |  |                        |         |  |                        |   |     |                     | 
|Asset management        |  | $                      | 239,376 |  |                        | $ |    |                     |  | $ | 301,965 | 
|Transaction advisory(a) |  |                        |        |  |                        |   |    |                     |  |   | 338,848 | 
|Office space            |  |                        | 36,161  |  |                        |   |    |                     |  |   | 35,045  | 
|Administrative services |  |                        | 15,000  |  |                        |   | 129 |                     |  |   | 22,021  | 

|                        |  |                     |         |  |                           |   |         |                     |  |   |         | 
|----------------------- |  | ------------------- | ------- |  | ------------------------- | - | ------- | ------------------- |  | - | ------- | 
|                        |  | Columbia Equity     |         |  | Columbia                  |   |         | Columbia            | 
|                        |  | Trust, Inc. for the |         |  | Predecessor for the       |   |         | Predecessor for the | 
|                        |  | Nine Months Ended   |         |  | Period January 1, 2005 to |   |         | Nine Months Ended   | 
|Service                 |  | September 30, 2005  |         |  | Through July 4, 2005      |   |         | September 30, 2004  | 
|                        |  |                     |         |  |                           |   |         |                     | 
|Asset management        |  | $                   | 239,376 |  |                           | $ | 701,194 |                     |  | $ | 558,157 | 
|Transaction advisory(a) |  |                     |        |  |                           |   | 737,162 |                     |  |   | 691,598 | 
|Office space            |  |                     | 36,161  |  |                           |   | 89,391  |                     |  |   | 105,948 | 
|Administrative services |  |                     | 15,000  |  |                           |   | 45,129  |                     |  |   | 74,871  | 






|    |                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Excludes success fees of $677,448 paid to CCC after July 4,
    2005 for acquisition and debt placement advisory services
    provided to the Company as part of its purchases of Loudoun
    Gateway IV on July 8, 2005 and Barlow Building on
    July 15, 2005.



|    |                                  
|--- | ---------------------------------
|12. | Commitments and Subsequent Events



18



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COLUMBIA EQUITY TRUST, INC. AND


COLUMBIA EQUITY TRUST, INC. PREDECESSOR


NOTES TO FINANCIAL STATEMENTS  (Continued)










19



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##### Table of Contents








|        |                                                                                           
|------- | ------------------------------------------------------------------------------------------
|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
    (including, without limitation, the inability to enter into or
    renew leases, dependence on tenants financial condition
    and competition from other developers, owners, operators and
    managers of real estate);
|
| |  | risks associated with the availability and terms of financing
    and the use of debt, equity or other types of financings to fund
    acquisitions and developments;                                                                                                                         
|
| |  | failure to manage effectively (i) our growth, including the
    successful integration of recent and future acquisitions and
    (ii) our transition from a privately held to a publicly
    held company;                                                                                    
|
| |  | risks and uncertainties affecting property development and
    construction (including, without limitation, construction
    delays, cost overruns, inability to obtain necessary permits and
    public opposition to such activities);                                                      
|
| |  | 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;                                                                                                                                                                                                      
|
| |  | potential liability for uninsured losses and environmental
    contamination;                                                                                                                                                                                                                 

20



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##### Table of Contents





| |   |                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | risks associated with the potential failure to qualify as a REIT
    under the Internal Revenue Code of 1986, as amended, and
    possible adverse changes in tax and environmental laws;
|
| |  | risks associated with possible federal, state and local tax
    audits;                                                                                                                  
|
| |  | risks associated with our dependence on key personnel whose
    continued service is not guaranteed; and                                                                                 
|
| |  | the other risk factors identified in the Prospectus, including
    those described under the caption Risk Factors.                                                                     



Overview and Recent Developments










21



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##### Table of Contents

















Office Market Commentary








| |   |                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Market-wide office vacancy levels improved for the ninth
    consecutive quarter to end at 9.5%.                                                      
|
| |  | Vacancy levels by region ended the quarter at 7.8% for the
    District of Columbia; 10.1% for suburban Maryland; and 10.5% for
    northern Virginia.

22



---



##### Table of Contents





| |   |                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The average quoted asking rental rate for all classes of
    available office space was $30.61 representing a 1.3% increase
    in quoted rental rates from the end of the second quarter 2005
    and a 4.0% increase over levels reported at the end of the third
    quarter of 2004.                    
|
| |  | There was approximately 13.6 million square feet of office
    space under construction at the end of the third quarter 2005
    represented by 6.2 million square feet in the District of
    Columbia; 6.3 million square feet in northern Virginia, and
    1.1 million square feet in suburban Maryland.
|
| |  | Sales activity of office buildings remained brisk during the
    first six months of 2005, the most recent time period for which
    this information is available. Total volume amounted to
    approximately $4.0 billion compared to $2.5 billion
    for the first six months of 2004.                  







|                    |           |           |      |     |             |           |         |           |           |       |               |    |   |  |     |    |  
|------------------- | --------- | --------- | ---- | --- | ----------- | --------- | ------- | --------- | --------- | ----- | ------------- | -- | - |  | --- | -- | -
|                    |           |           |      |     |             | Occupancy |         |           | Occupancy |      
|                    |           |           |      | Net |             |           | as of   |           |           | as of |              
|                    |           | Ownership |      |     | Rentable    |           |         | June 30,  |           |       | September 30, |   
|Property            |           | Interest  |      |     | Square Feet |           |         | 2005      |           |       | 2005          |   
|                    |           |           |      |     |             |           |         |           |           |       |               |   
|Fair Oaks           |           |           | 100  | %   |             |           | 126,949 |           |           |       | 84            | %  |   |  | 84  | % 
|Greenbriar          |           |           | 100  | %   |             |           | 111,721 |           |           |       | 60            | %  |   |  | 83  | % 
|Sherwood Plaza      |           |           | 100  | %   |             |           | 92,960  |           |           |       | 91            | %  |   |  | 100 | % 
|Loudoun Gateway IV  |           |           | 100  | %   |             |           | 102,987 |           |           |       | 100           | %  |   |  | 100 | % 
|Meadows IV          |           |           | 100  | %   |             |           | 148,160 |           |           |       | 100           | %  |   |  | 100 | % 
|14700 Lee Road(1)   |           |           | 100  | %   |             |           | 84,652  |           |           |       |              |    |   |  | 100 | % 
|Park Plaza II(1)    |           |           | 100  | %   |             |           | 126,228 |           |           |       |              |    |   |  | 97  | % 
|King Street         |           |           | 50.0 | %   |             |           | 149,080 |           |           |       | 85            | %  |   |  | 86  | % 
|Madison Place       |           |           | 50.0 | %   |             |           | 108,252 |           |           |       | 79            | %  |   |  | 79  | % 
|Barlow Building     |           |           | 40.0 | %   |             |           | 270,490 |           |           |       | 96            | %  |   |  | 95  | % 
|Atrium Building     |           |           | 37.0 | %   |             |           | 138,507 |           |           |       | 100           | %  |   |  | 100 | % 
|Suffolk Building    |           |           | 36.5 | %   |             |           | 257,425 |           |           |       | 100           | %  |   |  | 100 | % 
|Independence Center |           |           | 14.7 | %   |             |           | 275,002 |           |           |       | 91            | %  |   |  | 91  | % 
|1575 Eye Street     |           |           | 9.2  | %   |             |           | 210,372 |           |           |       | 99            | %  |   |  | 99  | % 
|Victory Point       |           |           | 10.0 | %   |             |           | 147,743 |           |           |       | 0             | %  |   |  | 0   | % 
|                    |           |           |      |     |             |           |         |           |           |       |               |   
|                    | Totals(2) |           |      |     |             |           |         | 2,350,528 |           |       |               | 92 | % |  |     | 94 | %
|                    |           |           |      |     |             |           |         |           |           |       |               |   






|    |                                                                                                                                                                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | 14700 Lee Road and Park Plaza II were acquired during the
    third quarter of 2005.                                                                                                                                                                                                                                                                                                
|   
|(2) | Calculated as a weighted average based on net rentable square
    feet. Excludes the occupancy of Victory Point which was acquired
    vacant in March 2005 by Columbia Predecessor and is in the
    initial stages of leasing. The weighted average occupancy
    including Victory Point was approximately 88% and 86% at
    September 30, 2005 and June 30, 2005, respectively.

23



---



##### Table of Contents





Summary of Critical Accounting Policies and Estimates










| |                                                                       
| | ----------------------------------------------------------------------
| | Revenue Recognition and Allowance for Doubtful Accounts
    Receivable







| |                           
| | --------------------------
| | Investments in Real Estate





24



---



##### Table of Contents















| |                     
| | --------------------
| | Assets Held for Sale





25



---



##### Table of Contents







| |                                                   
| | --------------------------------------------------
| | Investments in Unconsolidated Real Estate Entities





| |                                                                   
| | ------------------------------------------------------------------
| | Depreciation, Amortization and Impairment of Long-Lived
    Assets





Results of Operations






| |                                                                                                 
| | ------------------------------------------------------------------------------------------------
| | Comparison of Three Months Ended September 30, 2005
    to Three Months Ended September 30, 2004



| |           
| | ----------
| | Base Rents



26



---



##### Table of Contents





| |                        
| | -----------------------
| | Recoveries from Tenants





| |           
| | ----------
| | Fee Income





| |                            
| | ---------------------------
| | Property Operating Expenses





| |                 
| | ----------------
| | Utility Expenses





| |                                         
| | ----------------------------------------
| | Real Estate Taxes and Insurance Expenses





| |                                    
| | -----------------------------------
| | General and Administrative Expenses





| |                              
| | -----------------------------
| | Share-based Compensation Cost



27



---



##### Table of Contents







| |                                       
| | --------------------------------------
| | Depreciation and Amortization Expenses





| |                
| | ---------------
| | Interest Income





| |                 
| | ----------------
| | Interest Expense





| |                                                                       
| | ----------------------------------------------------------------------
| | Equity in Net Income (Loss) of Unconsolidated Real Estate
    Entities





| |                  
| | -----------------
| | Minority Interest





| |                                                                                               
| | ----------------------------------------------------------------------------------------------
| | Comparison of Nine Months Ended September 30, 2005 to
    Nine Months Ended September 30, 2004



| |           
| | ----------
| | Base Rents



28



---



##### Table of Contents





| |                        
| | -----------------------
| | Recoveries from Tenants





| |           
| | ----------
| | Fee Income





| |                            
| | ---------------------------
| | Property Operating Expenses





| |                 
| | ----------------
| | Utility Expenses





| |                                         
| | ----------------------------------------
| | Real Estate Taxes and Insurance Expenses





| |                                    
| | -----------------------------------
| | General and Administrative Expenses





| |                              
| | -----------------------------
| | Share-based Compensation Cost



29



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##### Table of Contents







| |                                       
| | --------------------------------------
| | Depreciation and Amortization Expenses





| |                
| | ---------------
| | Interest Income





| |                 
| | ----------------
| | Interest Expense





| |                                                                
| | ---------------------------------------------------------------
| | Equity in Net Income of Unconsolidated Real Estate
    Entities





| |                  
| | -----------------
| | Minority Interest



Cash Flows




| |                                                                                               
| | ----------------------------------------------------------------------------------------------
| | Comparison of Nine Months Ended September 30, 2005 to
    Nine Months Ended September 30, 2004



30



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##### Table of Contents









Liquidity and Capital Resources








| |                                  
| | ---------------------------------
| | Short-Term Liquidity Requirements





| |   |                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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;
|
| |  | general and administrative expenses; and                                                                                                          
|
| |  | distributions to our stockholders.                                                                                                                





31



---



##### Table of Contents







| |                                 
| | --------------------------------
| | Long-Term Liquidity Requirements











| |                         
| | ------------------------
| | Cash Distribution Policy



32



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##### Table of Contents



Inflation




Geographic Concentration









|        |                                                              
|------- | -------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosure About Market
    Risk














|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures

Evaluation of Disclosure Controls and Procedures




Changes in Internal Control Over Financial Reporting




33



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##### Table of Contents






PART II  OTHER INFORMATION







|        |                                                                 
|------- | ----------------------------------------------------------------
|Item 2. | Unregistered Sales of Equity Securities and Use of
    Proceeds.

Use of Proceeds from Registered Securities






Unregistered Securities






34



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##### Table of Contents








|        |          
|------- | ---------
|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 24, 2005).                         
| | 3.2  |  |  | Amended and Restated Bylaws of the Registrant 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 24, 2005).                        
| | 4.1  |  |  | Specimen Common Stock Certificate                                                                                                                                                                                                                    
| | 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 24, 2005).
| | 10.1 |  |  | Purchase Agreement, by and between Opus Real Estate
    Virginia III, L.L.C. and Carr Capital Corporation, dated
    June 17, 2005.                                                                                                                  
| | 10.2 |  |  | Membership Units Purchase Agreement, by and between Park Plaza
    Partners, L.L.C. and Columbia Equity Trust, Inc., dated as of
    August 9, 2005.                                                                                                 
| | 10.3 |  |  | First Amendment to Membership Units Purchase Agreement, by and
    between Park Plaza Partners, L.L.C. and Columbia Equity Trust,
    Inc., dated as of September 8, 2005.                                                                           
| | 10.4 |  |  | Loan Agreement, by and among Barlow Enterprises LLC as borrower,
    5454 Wisconsin Inc. as guarantor, and General Electric Capital
    Corporation as lender, dated as of July 15, 2005.                                                            
| | 10.5 |  |  | First Amendment to Purchase Agreement, by and between Opus Real
    Estate Virginia III, L.L.C. and Carr Capital Corporation,
    dated July 25, 2005.                                                                                               
| | 10.6 |  |  | Purchase and Sale Agreement, by and between Patrick Henry
    Associates, L.P. and Columbia Equity Trust, Inc., dated August
    4, 2005.                                                                                                            
| | 10.7 |  |  | First Amendment to Purchase and Sale Agreement, by and between
    Patrick Henry Associates, L.P. and Columbia Equity Trust, Inc.,
    dated August 11, 2005.                                                                                        
| | 10.8 |  |  | Second Amendment to Purchase and Sale Agreement, by and between
    Patrick Henry Associates, L.P. and Columbia Equity Trust, Inc.,
    dated August 31, 2005.                                                                                       
| | 10.9 |  |  | Third Amendment to Purchase and Sale Agreement, by and between
    Patrick Henry Associates, L.P. and Columbia Equity Trust, Inc.,
    dated October 27, 2005.                                                                                       
| | 31.1 |  |  | Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002 from Mr. Oliver T. Carr, III.                                                                                                                                            
| | 31.2 |  |  | Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002 from Mr. John A. Schissel.                                                                                                                                               
| | 32.1 |  |  | Certification pursuant to Section 906 of the Sarbanes-Oxley
    Act of 2002 from Mr. Oliver T. Carr, III and
    Mr. John A. Schissel.                                                                                                               

35



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##### Table of Contents






SIGNATURES






| |                            
| | ---------------------------
| | COLUMBIA EQUITY TRUST, INC.



| |     |                        
| | --- | -----------------------
| | By: | /s/ Oliver T. Carr, III

| |                                      
| | -------------------------------------
| |                                      
| | Oliver T. Carr, III                  
| | President and Chief Executive Officer





| |     |                     
| | --- | --------------------
| | By: | /s/ John A. Schissel

| |                             
| | ----------------------------
| |                             
| | John A. Schissel            
| | Executive Vice President and
| | Chief Financial Officer     



36



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##### Table of Contents






EXHIBIT INDEX


|    |      |  |  |  |             |                                                                                                                                                                                                                                                      
|--- | ---- |  |  |  | ----------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|No. |      |  |  |  | Description
|    |      |  |  |  |            
|    | 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 24, 2005).                         
|    | 3.2  |  |  |  |             | Amended and Restated Bylaws of the Registrant 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 24, 2005).                        
|    | 4.1  |  |  |  |             | Specimen Common Stock Certificate                                                                                                                                                                                                                    
|    | 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 24, 2005).
|    | 10.1 |  |  |  |             | Purchase Agreement, by and between Opus Real Estate
    Virginia III, L.L.C. and Carr Capital Corporation, dated
    June 17, 2005.                                                                                                                  
|    | 10.2 |  |  |  |             | Membership Units Purchase Agreement, by and between Park Plaza
    Partners, L.L.C. and Columbia Equity Trust, Inc., dated as of
    August 9, 2005.                                                                                                 
|    | 10.3 |  |  |  |             | First Amendment to Membership Units Purchase Agreement, by and
    between Park Plaza Partners, L.L.C. and Columbia Equity Trust,
    Inc., dated as of September 8, 2005.                                                                           
|    | 10.4 |  |  |  |             | Loan Agreement, by and among Barlow Enterprises LLC as borrower,
    5454 Wisconsin Inc. as guarantor, and General Electric Capital
    Corporation as lender, dated as of July 15, 2005.                                                            
|    | 10.5 |  |  |  |             | First Amendment to Purchase Agreement, by and between Opus Real
    Estate Virginia III, L.L.C. and Carr Capital Corporation,
    dated July 25, 2005.                                                                                               
|    | 10.6 |  |  |  |             | Purchase and Sale Agreement, by and between Patrick Henry
    Associates, L.P. and Columbia Equity Trust, Inc., dated August
    4, 2005.                                                                                                            
|    | 10.7 |  |  |  |             | First Amendment to Purchase and Sale Agreement, by and between
    Patrick Henry Associates, L.P. and Columbia Equity Trust, Inc.,
    dated August 11, 2005.                                                                                        
|    | 10.8 |  |  |  |             | Second Amendment to Purchase and Sale Agreement, by and between
    Patrick Henry Associates, L.P. and Columbia Equity Trust, Inc.,
    dated August 31, 2005.                                                                                       
|    | 10.9 |  |  |  |             | Third Amendment to Purchase and Sale Agreement, by and between
    Patrick Henry Associates, L.P. and Columbia Equity Trust, Inc.,
    dated October 27, 2005.                                                                                       
|    | 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.                                                                                                              

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