UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 10, 2009 (August 10, 2009)
GOVERNMENT PROPERTIES INCOME TRUST
(Exact Name of Registrant as Specified in Its Charter)
Maryland
(State or Other Jurisdiction of Incorporation)
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1-34364 |
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26-4273474 |
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(Commission File Number) |
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(IRS Employer Identification No.) |
400 Centre Street, Newton, Massachusetts 02458
(Address of Principal Executive Offices) (Zip Code)
617-219-1440
(Registrants Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operating Condition.
On August 10, 2009, Government Properties Income Trust, or the Company, issued a press release setting forth the Companys results of operations and financial condition for the quarter and six months ended June 30, 2009, and also provided certain supplemental operating and financial data for the quarter and six months ended June 30, 2009. Copies of the Companys press release and supplemental operating and financial data are furnished as Exhibits 99.1 and 99.2 hereto, respectively.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The Company hereby furnishes the following exhibits:
99.1 Press release dated August 10, 2009
99.2 Second Quarter 2009 Supplemental Operating and Financial Data
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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GOVERNMENT PROPERTIES INCOME TRUST |
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By: |
/s/ David M. Blackman |
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Name: |
David M. Blackman |
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Title: |
Treasurer and Chief Financial Officer |
Dated: August 10, 2009
3
Exhibit 99.1
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400 Centre Street, Newton, MA 02458-2076 |
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tel: (617) 219-1440 fax : (617) 219-1441 |
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FOR IMMEDIATE RELEASE |
Contacts: |
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Timothy A. Bonang, Director of Investor Relations, or Katherine L. Johnston, Manager of Investor Relations (617) 219-1440 |
Government Properties Income Trust Announces Results for the Periods Ended June 30, 2009
Newton, MA (August 10, 2009): Government Properties Income Trust (NYSE: GOV) today announced financial results for the quarter and six months ended June 30, 2009. GOV completed its initial public offering on June 8, 2009. Accordingly, GOVs historical results of operations are not comparable to results which may be expected in future periods.
Results for the quarter ended June 30, 2009:
Net income available for common shareholders was $5.9 million for the quarter ended June 30, 2009, compared to $8.3 million for the same quarter last year. Net income per share (EPS) for the quarter ended June 30, 2009 was $0.47. For the quarter ended June 30, 2008, GOV did not have any outstanding shares.
Funds from operations (FFO) for the quarter ended June 30, 2009 was $9.7 million, or $0.78 per share compared to FFO for the quarter ended June 30, 2008 of $11.9 million.
The weighted average number of common shares outstanding was 12,384,066, for the quarter ended June 30, 2009. GOV sold 11,500,000 common shares in an initial public offering on June 8, 2009. If the initial public offering had occurred on April 1, 2009, GOVs weighted average number of common shares outstanding would have been 21,450,000.
Results for the six months ended June 30, 2009:
Net income was $14.4 million for the six months ended June 30, 2009, compared to $16.4 million for the same period last year. Net income per share (EPS) for the six months ended June 30, 2009 was $1.67. GOV was formed as a wholly owned subsidiary of and issued 9,950,000 common shares to HRPT Properties Trust on February 17, 2009.
A
Maryland Real Estate Investment Trust with transferable shares of beneficial
interest listed on the New York
Stock Exchange.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
Funds from operations (FFO) for the six months ended June 30, 2009 was $21.7 million, or $2.53 per share, compared to FFO for the six months ended June 30, 2008 of $23.4 million.
The weighted average number of common shares outstanding was 8,590,055 for the six months ended June 30, 2009. If GOVs formation transaction and initial public offering had occurred on January 1, 2009, GOVs weighted average number of common shares outstanding would have been 21,450,000.
Initial Public Offering:
On June 2, 2009, GOV priced its initial public offering (IPO) of 10,000,000 common shares at $20.00 per share. The IPO closed on June 8, 2009 and GOV received $187,500,000 in net proceeds. On June 30, 2009, the underwriters exercised their over allotment option, purchasing an additional 1,500,000 common shares at $20.00 per share and GOV received $28,050,000 in net proceeds. GOV used the full net proceeds from the IPO and the exercise of the over allotment option in the amount of $215,550,000 to repay outstanding borrowings under its $250,000,000 secured credit facility that was established and fully drawn on April 25, 2009.
Conference Call:
On Monday, August 10, 2009, at 10:00 a.m. Eastern Time, Adam Portnoy, President and Managing Trustee, and David Blackman, Chief Financial Officer, will host a conference call to discuss the second quarter 2009 results.
The conference call telephone number is (888) 820-9414. Participants calling from outside the United States and Canada should dial (913) 312-6684. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 8:00 p.m. Eastern Time on Monday, August 17 th . To hear the replay, dial (719) 457-0820. The replay pass code is 1047892.
A live audio webcast of the conference call will also be available in a listen only mode on GOVs website, which is located at www.govreit.com. Participants wanting to access the webcast should visit the companys web site about five minutes before the call. The archived webcast will be available for replay on GOVs web site for about one week after the call.
Supplemental Data:
A copy of GOVs Second Quarter 2009 Supplemental Operating and Financial Data is available for download at GOVs web site, www.govreit.com.
Please see the pages attached hereto for a more detailed statement of our operating results and financial condition, along with an explanation of our calculation of FFO.
(unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2009 |
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2008 |
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2009 |
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2008 |
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Rental income |
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$ |
19,405 |
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$ |
18,862 |
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$ |
36,648 |
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$ |
37,519 |
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Expenses: |
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Real estate taxes |
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2,113 |
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1,982 |
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4,219 |
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3,940 |
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Utility expenses |
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1,523 |
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1,398 |
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3,044 |
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2,909 |
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Other operating expenses |
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2,912 |
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2,842 |
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5,711 |
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5,672 |
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Depreciation and amortization |
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3,797 |
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3,520 |
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7,361 |
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7,018 |
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General and administrative |
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873 |
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746 |
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1,613 |
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1,492 |
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Total expenses |
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11,218 |
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10,488 |
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21,948 |
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21,031 |
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Operating income |
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8,187 |
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8,374 |
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16,700 |
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16,488 |
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Interest income |
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42 |
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12 |
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44 |
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25 |
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Interest expense (including amortization of deferred financing fees of $427, $, $427 and $, respectively) |
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(2,360 |
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(46 |
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(2,360 |
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(102 |
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Net income |
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$ |
5,869 |
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$ |
8,340 |
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$ |
14,384 |
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$ |
16,411 |
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Calculation of Funds from Operations, or FFO (1) : |
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Net income |
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$ |
5,869 |
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$ |
8,340 |
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$ |
14,384 |
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$ |
16,411 |
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Plus: depreciation and amortization |
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3,797 |
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3,520 |
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7,361 |
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7,018 |
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FFO |
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$ |
9,666 |
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$ |
11,860 |
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$ |
21,745 |
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$ |
23,429 |
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Weighted average common shares outstanding |
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12,384 |
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8,590 |
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Per common share: |
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Net income |
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$ |
0.47 |
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$ |
1.67 |
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FFO |
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$ |
0.78 |
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$ |
2.53 |
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(1) We compute FFO as shown in the calculations above. Our calculation of FFO is consistent with the National Association of Real Estate Investment Trusts, or NAREIT, definition of FFO. We consider FFO to be an appropriate measure of performance for a REIT, along with net income and cash flow from operating, investing and financing activities. We believe that FFO provides useful information to investors because by excluding the effects of certain historical amounts, such as depreciation expense, FFO can facilitate a comparison of operating performance between historical periods and among REITs. FFO does not represent cash generated by operating activities in accordance with generally accepted accounting principles, or GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity. FFO is one important factor considered by our Board of Trustees in determining the amount of distributions to shareholders. Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our revolving credit facility and the availability of debt and equity capital to us and our expectations of future capital requirements and operating performance.
(unaudited)
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June 30, |
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December 31, |
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2009 |
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2008 |
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ASSETS |
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Real estate properties: |
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Land |
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$ |
65,719 |
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$ |
65,719 |
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Buildings and improvements |
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425,183 |
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424,756 |
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490,902 |
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490,475 |
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Accumulated depreciation |
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(106,070 |
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(100,034 |
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384,832 |
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390,441 |
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Acquired real estate leases, net |
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9,252 |
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10,071 |
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Cash and cash equivalents |
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451 |
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97 |
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Restricted cash |
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1,334 |
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Deferred leasing costs, net |
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1,538 |
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1,757 |
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Deferred financing costs, net |
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6,458 |
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Rents receivable |
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6,872 |
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14,593 |
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Due from affiliates |
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943 |
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Other assets, net |
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1,677 |
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1,481 |
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Total assets |
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$ |
412,023 |
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$ |
419,774 |
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LIABILITIES AND SHAREHOLDERS EQUITY |
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Mortgage notes payable |
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$ |
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$ |
134 |
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Secured credit facility |
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43,875 |
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Accounts payable and accrued expenses |
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5,795 |
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3,036 |
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Acquired real estate lease obligations, net |
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2,750 |
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3,151 |
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52,420 |
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6,321 |
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Shareholders equity: |
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Common shares of beneficial interest, $.01 par value: |
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25,000,000 shares authorized; 21,450,000 shares issued and outstanding |
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215 |
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Additional paid in capital |
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357,444 |
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Cumulative net income |
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1,944 |
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Ownership interest |
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413,453 |
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Total shareholders equity |
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359,603 |
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413,453 |
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Total liabilities and shareholders equity |
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$ |
412,023 |
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$ |
419,774 |
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Exhibit 99.2
GOVERNMENT PROPERTIES
INCOME TRUST
Second Quarter 2009
Supplemental Operating and Financial Data
All amounts in this report are unaudited, except as noted.
TABLE OF CONTENTS
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Page |
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CORPORATE INFORMATION |
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Company Profile |
5 |
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Investor Information |
6 |
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Research Coverage |
7 |
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FINANCIAL INFORMATION |
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Key Financial Data |
9 |
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Consolidated Balance Sheets |
10 |
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Consolidated Statements of Income |
11 |
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Consolidated Statements of Cash Flows |
12 |
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Calculation of EBITDA |
13 |
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Calculation and Reconciliation of Property Net Operating Income (NOI) |
14 |
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Calculation of Funds from Operations (FFO) |
15 |
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Debt Summary |
16 |
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Leverage Ratios and Coverage Ratios |
17 |
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Tenant Improvements, Leasing Costs and Capital Improvements |
18 |
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PROPERTY AND LEASING INFORMATION |
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Property Schedule |
20 |
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Tenants List |
21 |
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Occupancy and Leasing Summary |
22 |
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Portfolio Lease Expiration Schedule |
23 |
WARNING REGARDING
FORWARD LOOKING STATEMENTS
THIS SUPPLEMENTAL OPERATING AND FINANCIAL DATA CONTAINS STATEMENTS WHICH CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS. WHENEVER WE USE WORDS SUCH AS BELIEVE, EXPECT, ANTICIPATE, INTEND, PLAN, ESTIMATE OR SIMILAR EXPRESSIONS, WE ARE MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON OUR PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. FORWARD LOOKING STATEMENTS IN THIS REPORT RELATE TO VARIOUS ASPECTS OF OUR BUSINESS, INCLUDING:
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THE CREDIT QUALITY OF OUR TENANTS, |
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THE LIKELIHOOD THAT OUR TENANTS WILL PAY RENT, RENEW LEASES, SIGN NEW LEASES OR BE AFFECTED BY CYCLICAL ECONOMIC CONDITIONS, |
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OUR FUTURE ACQUISITION AND SALE OF PROPERTIES, |
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OUR ABILITY TO PAY INTEREST ON AND PRINCIPAL OF OUR DEBT, |
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OUR ABILITY TO PAY DISTRIBUTIONS TO SHAREHOLDERS AND THE EXPECTED AMOUNTS THEREOF, |
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OUR POLICIES AND PLANS REGARDING INVESTMENTS AND FINANCINGS, |
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THE FUTURE AVAILABILITY OF BORROWINGS UNDER OUR REVOLVING CREDIT FACILITY, |
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OUR ABILITY TO RAISE EQUITY OR DEBT CAPITAL, AND |
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OTHER MATTERS. |
OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY OUR FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FACTORS THAT COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR FORWARD LOOKING STATEMENTS AND UPON OUR BUSINESS, RESULTS OF OPERATIONS, FINANCIAL CONDITION, FUNDS FROM OPERATIONS, CASH AVAILABLE FOR DISTRIBUTION, CASH FLOWS, LIQUIDITY AND PROSPECTS INCLUDE, BUT ARE NOT LIMITED TO:
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CHANGES IN THE ECONOMY AND THE CAPITAL MARKETS, |
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COMPETITION WITHIN THE REAL ESTATE INDUSTRY, AND |
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CHANGES IN FEDERAL, STATE AND LOCAL LEGISLATION, GOVERNMENTAL REGULATIONS, ACCOUNTING TREATMENT, TAX LAWS AND SIMILAR MATTERS. |
FOR EXAMPLE:
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IF THE AVAILABILITY OF DEBT CAPITAL REMAINS RESTRICTED OR BECOMES MORE RESTRICTED, WE MAY BE UNABLE TO REPAY OUR DEBT OBLIGATIONS WHEN THEY BECOME DUE OR TO REFINANCE ON TERMS WHICH ARE AS FAVORABLE AS WE NOW HAVE, |
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WE MAY BE UNABLE TO IDENTIFY PROPERTIES WHICH WE WANT TO BUY OR TO NEGOTIATE ACCEPTABLE PURCHASE PRICES, |
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OUR ABILITY TO MAKE FUTURE DISTRIBUTIONS DEPENDS UPON OUR FUTURE EARNINGS, AND |
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OTHER RISKS MAY ADVERSELY IMPACT US, AS DESCRIBED MORE FULLY IN OUR PROSPECTUS DATED JUNE 2, 2009, UNDER RISK FACTORS, WHICH IS ACCESSIBLE ON THE SECS WEBSITE AT WWW.SEC.GOV. |
THESE RESULTS COULD OCCUR DUE TO MANY DIFFERENT CIRCUMSTANCES, SOME OF WHICH, SUCH AS GOVERNMENT TENANTS NEEDS FOR LEASED SPACE, OR CHANGES IN THE CAPITAL MARKETS OR THE ECONOMY GENERALLY, ARE BEYOND OUR CONTROL.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON OUR FORWARD LOOKING STATEMENTS.
EXCEPT AS REQUIRED BY LAW, WE UNDERTAKE NO OBLIGATION TO UPDATE OR CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.
CORPORATE INFORMATION
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
COMPANY PROFILE
The Company:
Government Properties Income Trust, or GOV, is a real estate investment trust, or REIT, which primarily owns buildings majority leased to government tenants located throughout the United States. The majority of our properties are commercial office buildings located in suburban areas and central business districts, or CBDs, of major metropolitan markets. As of June 30, 2009, we owned approximately 3.3 million square feet comprising 29 properties, of which 25 are primarily leased to the U.S. Government and 4 are leased to the state governments of California, Maryland, Minnesota and South Carolina. GOV was formed in February 2009 and became a public company on June 8, 2009.
Strategy:
Our primary business strategy is to maintain our properties, seek to renew our leases as they expire, selectively acquire additional properties that are majority leased to government tenants and to pay distributions to shareholders. As current leases expire, we will attempt to renew our leases with our existing tenants or enter into leases with new tenants, in both circumstances at rents which are equal to or greater than the rents we now receive. Our ability to renew leases with our existing tenants or to enter into new leases with new tenants and the rents we are able to charge will be dependent in large part upon market conditions which are generally beyond our control. Although we sometimes sell properties, we generally consider ourselves to be a long term investor and are more interested in the long term earnings potential of our properties than selling properties for short term gains. We currently do not have any investments in off balance sheet entities.
Management:
GOV is managed by Reit Management & Research LLC, or RMR. RMR is a real estate management company which was founded in 1986 to manage public investments in real estate. As of June 30, 2009, RMR managed one of the largest portfolios of publicly owned real estate in the North America, including nearly 1,350 properties, located in 45 states, Washington, DC, Puerto Rico and Ontario, Canada. RMR has approximately 570 employees in its headquarters and regional offices located throughout the country. In addition to managing GOV, RMR also manages HRPT Properties Trust, or HRP, a publicly traded REIT that owns office and industrial properties, our former 100% parent company which continues to own approximately 46.4% of our outstanding shares. RMR also manages Hospitality Properties Trust, or HPT, a publicly traded REIT that owns hotels and travel centers, and Senior Housing Properties Trust, or SNH, a publicly traded REIT that primarily owns healthcare properties. RMR also provides management services to Five Star Quality Care, Inc., a healthcare services company which is a tenant of SNH, and to Travel Centers of America, LLC, an operator of travel centers which is a tenant of HPT. An affiliate of RMR, RMR Advisors, Inc., is the investment manager of publicly offered mutual funds, which principally invests in securities of unaffiliated real estate companies. The public companies managed by RMR and its affiliates had combined total gross assets of approximately $16.3 billion as of June 30, 2009. We believe that being managed by RMR is a competitive advantage for GOV because RMR provides us with a depth and quality of management and experience which may be unequaled in the real estate industry. We also believe RMR provides management services to GOV at costs that are lower than we would have to pay for similar quality services.
Corporate Headquarters:
400 Centre Street
Newton, MA 02458
(t) (617) 219-1440
(f) (617) 796-8267
Stock Exchange Listing:
New York Stock Exchange
Trading Symbols:
Common Stock GOV
Portfolio Data (as of 6/30/09):
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Total properties |
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29 |
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Total sq. ft. (000s) |
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3,304 |
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Percent leased |
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99.3 |
% |
5
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
INVESTOR INFORMATION
Board of Trustees
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Barry M. Portnoy |
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Adam D. Portnoy |
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Managing Trustee |
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Managing Trustee |
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John L. Harrington |
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Jeffrey P. Somers |
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Independent Trustee |
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Independent Trustee |
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Barbara D. Gilmore |
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Independent Trustee |
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Senior Management
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Adam D. Portnoy |
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David M. Blackman |
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President |
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Treasurer & Chief Financial Officer |
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Contact Information
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Investor Relations Government Properties Income Trust 400 Centre Street Newton, MA 02458 (t) (617) 219-1440 (f) (617) 796-8267 (e-mail) info@govreit.com (website) www.govreit.com |
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Inquiries Financial inquiries should be directed to David M. Blackman, Treasurer and Chief Financial Officer, at (617) 219-1440 or dblackman@govreit.com.
Investor and media inquiries should be directed to Timothy A. Bonang, Director of Investor Relations, at (617) 796-8222 or tbonang@govreit.com, or Katherine L. Johnston, Manager of Investor Relations, at (617) 796-8222 or kjohnston@govreit.com. |
6
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
RESEARCH COVERAGE
Equity Research Coverage
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B.G.B. Securities |
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Banc of America Merril Lynch Research |
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David Shapiro |
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James Feldman |
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(703) 528-5782 |
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(212) 449-6255 |
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Morgan Keegan |
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RBC Capital Markets |
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Jason Payne |
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David Rodgers |
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(901) 531-3327 |
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(440) 715-2647 |
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Wells Fargo Securities |
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Brendan Maiorana |
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(443) 263-6516 |
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GOV is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding GOVs performance made by these analysts do not represent opinions, forecasts or predictions of GOV or its management. GOV does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations provided by any of these analysts .
7
FINANCIAL INFORMATION
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
KEY FINANCIAL DATA (1)
(amounts in thousands, except per share data)
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As of and For the Three Months Ended |
|
|||||||||||||
|
|
|
6/30/2009 |
|
3/31/2009 |
|
12/31/2008 |
|
9/30/2008 |
|
6/30/2009 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Common shares outstanding (at end of period) |
|
21,450 |
|
9,950 |
|
|
|
|
|
|
|
|||||
|
Weighted average common shares outstanding (2) |
|
12,384 |
|
4,754 |
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Price at end of period |
|
$ |
20.53 |
|
|
|
|
|
|
|
|
|
||||
|
High during period |
|
$ |
20.53 |
|
|
|
|
|
|
|
|
|
||||
|
Low during period |
|
$ |
17.76 |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total assets |
|
$ |
412,023 |
|
$ |
417,159 |
|
$ |
419,774 |
|
$ |
423,986 |
|
$ |
424,053 |
|
|
Total liabilities |
|
$ |
52,420 |
|
$ |
5,515 |
|
$ |
6,321 |
|
$ |
8,682 |
|
$ |
8,399 |
|
|
Gross book value of real estate assets (3) |
|
$ |
502,696 |
|
$ |
502,330 |
|
$ |
502,269 |
|
$ |
500,763 |
|
$ |
500,258 |
|
|
Total debt / gross book value of real estate (3) |
|
8.7 |
% |
0.0 |
% |
0.0 |
% |
0.3 |
% |
0.4 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Book Capitalization: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total debt |
|
$ |
43,875 |
|
$ |
|
|
$ |
134 |
|
$ |
1,537 |
|
$ |
1,931 |
|
|
Plus: total stockholders equity |
|
359,603 |
|
411,644 |
|
413,453 |
|
413,304 |
|
415,654 |
|
|||||
|
Total book capitalization |
|
$ |
403,478 |
|
$ |
411,644 |
|
$ |
413,587 |
|
$ |
414,841 |
|
$ |
417,585 |
|
|
Total debt / total book capitalization |
|
10.9 |
% |
0.0 |
% |
0.0 |
% |
0.4 |
% |
0.5 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Market Capitalization: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total debt (book value) |
|
$ |
43,875 |
|
|
|
|
|
|
|
|
|
||||
|
Plus: market value of common shares (at end of period) |
|
440,369 |
|
|
|
|
|
|
|
|
|
|||||
|
Total market capitalization |
|
$ |
484,244 |
|
|
|
|
|
|
|
|
|
||||
|
Total debt / total market capitalization |
|
9.1 |
% |
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Selected Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rental income |
|
$ |
19,405 |
|
$ |
19,243 |
|
$ |
19,468 |
|
$ |
18,438 |
|
$ |
18,862 |
|
|
EBITDA (4) |
|
$ |
12,026 |
|
$ |
12,079 |
|
$ |
11,795 |
|
$ |
10,804 |
|
$ |
11,906 |
|
|
Property net operating income (NOI) (5) |
|
$ |
12,857 |
|
$ |
12,817 |
|
$ |
12,536 |
|
$ |
11,544 |
|
$ |
12,689 |
|
|
NOI margin (6) |
|
66.3 |
% |
66.6 |
% |
64.4 |
% |
62.6 |
% |
67.3 |
% |
|||||
|
Net income |
|
$ |
5,869 |
|
$ |
8,515 |
|
$ |
8,169 |
|
$ |
7,227 |
|
$ |
8,340 |
|
|
Funds from operations (FFO) (7) |
|
$ |
9,666 |
|
$ |
12,079 |
|
$ |
11,781 |
|
$ |
10,778 |
|
$ |
11,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net income |
|
$ |
0.47 |
|
$ |
1.79 |
|
|
|
|
|
|
|
|||
|
FFO (7) |
|
$ |
0.78 |
|
$ |
2.54 |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Coverage Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
EBITDA (4) / interest expense |
|
5.1x |
|
nm |
|
nm |
|
nm |
|
nm |
|
|||||
|
(1) |
|
GOV became a public company on June 8, 2009 and will declare and pay its first quarterly dividend when it declares and pays its dividend for Q3 2009. |
|
(2) |
|
GOV was formed in February 2009 and has no outstanding share equivalents, such as units, convertible debt or stock options. |
|
(3) |
|
Gross book value of real estate assets is real estate properties, at cost, including purchase price allocations less impairment writedowns, if any. |
|
(4) |
|
See page 13 for calculation of EBITDA. |
|
(5) |
|
Property net operating income, or NOI, is defined as rental income from real estate less property operating expenses; see page 14 for calculation of NOI and reconciliation of NOI to Net Income. |
|
(6) |
|
NOI margin is defined as property net operating income, or NOI, as a percentage of rental income. |
|
(7) |
|
See page 15 for calculation of FFO and FFO per share. |
9
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
|
|
|
As of |
|
As of |
|
||
|
|
|
6/30/2009 |
|
12/31/2008 |
|
||
|
|
|
|
|
(audited) |
|
||
|
ASSETS |
|
|
|
|
|
||
|
Real estate properties: |
|
|
|
|
|
||
|
Land |
|
$ |
65,719 |
|
$ |
65,719 |
|
|
Buildings and improvements |
|
425,183 |
|
424,756 |
|
||
|
|
|
490,902 |
|
490,475 |
|
||
|
Accumulated depreciation |
|
(106,070 |
) |
(100,034 |
) |
||
|
|
|
384,832 |
|
390,441 |
|
||
|
|
|
|
|
|
|
||
|
Acquired real estate leases, net |
|
9,252 |
|
10,071 |
|
||
|
Cash and cash equivalents |
|
451 |
|
97 |
|
||
|
Restricted cash |
|
|
|
1,334 |
|
||
|
Rents receivable |
|
6,872 |
|
14,593 |
|
||
|
Deferred leasing costs, net |
|
1,538 |
|
1,757 |
|
||
|
Deferred financing costs, net |
|
6,458 |
|
|
|
||
|
Due from affiliates |
|
943 |
|
|
|
||
|
Other assets, net |
|
1,677 |
|
1,481 |
|
||
|
Total assets |
|
$ |
412,023 |
|
$ |
419,774 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND SHAREHOLDERS EQUITY |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Mortgage notes payable |
|
$ |
|
|
$ |
134 |
|
|
Secured revolving credit facility |
|
43,875 |
|
|
|
||
|
Accounts payable and accrued expenses |
|
5,795 |
|
3,036 |
|
||
|
Acquired real estate lease obligations, net |
|
2,750 |
|
3,151 |
|
||
|
Total liabilities |
|
52,420 |
|
6,321 |
|
||
|
|
|
|
|
|
|
||
|
Shareholders equity: |
|
|
|
|
|
||
|
Common shares of beneficial interest, $0.01 par value: 25,000,000 shares authorized; 21,450,000 shares issued and outstanding |
|
215 |
|
|
|
||
|
Additional paid in capital |
|
357,444 |
|
|
|
||
|
Cumulative net income |
|
1,944 |
|
|
|
||
|
Ownership interest |
|
|
|
413,453 |
|
||
|
Total shareholders equity |
|
359,603 |
|
413,453 |
|
||
|
Total liabilities and shareholders equity |
|
$ |
412,023 |
|
$ |
419,774 |
|
10
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
CONSOLIDATED STATEMENTS OF INCOME
(amounts in thousands, except per share data)
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
||||||||
|
|
|
6/30/2009 |
|
6/30/2008 |
|
6/30/2009 |
|
6/30/2008 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Rental income (1) |
|
$ |
19,405 |
|
$ |
18,862 |
|
$ |
38,648 |
|
$ |
37,519 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Expenses: |
|
|
|
|
|
|
|
|
|
||||
|
Real estate taxes |
|
2,113 |
|
1,982 |
|
4,219 |
|
3,940 |
|
||||
|
Utility expenses |
|
1,523 |
|
1,398 |
|
3,044 |
|
2,909 |
|
||||
|
Other operating expenses |
|
2,912 |
|
2,842 |
|
5,711 |
|
5,672 |
|
||||
|
Depreciation and amortization |
|
3,797 |
|
3,520 |
|
7,361 |
|
7,018 |
|
||||
|
General and administrative |
|
873 |
|
746 |
|
1,613 |
|
1,492 |
|
||||
|
Total expenses |
|
11,218 |
|
10,488 |
|
21,948 |
|
21,031 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating income |
|
8,187 |
|
8,374 |
|
16,700 |
|
16,488 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest income |
|
42 |
|
12 |
|
44 |
|
25 |
|
||||
|
Interest expense (including amortization of deferred financing fees of $427, $ - , $427 and $-, respectively) |
|
(2,360 |
) |
(46 |
) |
(2,360 |
) |
(102 |
) |
||||
|
Net income |
|
$ |
5,869 |
|
$ |
8,340 |
|
$ |
14,384 |
|
$ |
16,411 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average common shares outstanding |
|
12,384 |
|
|
|
8,590 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
||||
|
Net income |
|
$ |
0.47 |
|
N/A |
|
$ |
1.67 |
|
N/A |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Additional Data: |
|
|
|
|
|
|
|
|
|
||||
|
General and administrative expenses / rental income |
|
4.50 |
% |
3.96 |
% |
4.17 |
% |
3.98 |
% |
||||
|
General and administrative expenses / total assets (at end of period) |
|
0.21 |
% |
0.18 |
% |
0.39 |
% |
0.35 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non cash straight line rent adjustments (FAS 13) (1) |
|
$ |
(109 |
) |
$ |
(12 |
) |
$ |
(225 |
) |
$ |
(29 |
) |
|
Lease value amortization (FAS 141) (1) |
|
$ |
(209 |
) |
$ |
(209 |
) |
$ |
(418 |
) |
$ |
(387 |
) |
|
Lease termination fees included in rental income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
Capitalized interest expense |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
(1) |
We report rental income on a straight line basis over the terms of the respective leases; rental income includes non-cash straight line rent adjustments. Rental income also includes non-cash amortization of intangible lease assets and liabilities. |
11
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
||||||||
|
|
|
6/30/2009 |
|
6/30/2008 |
|
6/30/2009 |
|
6/30/2008 |
|
||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
||||
|
Net income |
|
$ |
5,869 |
|
$ |
8,340 |
|
$ |
14,384 |
|
$ |
16,411 |
|
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
||||
|
Depreciation and amortization |
|
4,139 |
|
3,434 |
|
7,617 |
|
6,835 |
|
||||
|
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
|
||||
|
Decrease in restricted cash |
|
|
|
609 |
|
1,334 |
|
46 |
|
||||
|
Increase in deferred leasing costs |
|
|
|
(163 |
) |
|
|
(294 |
) |
||||
|
Increase (decrease) in accounts receivable |
|
189 |
|
(73 |
) |
(326 |
) |
(306 |
) |
||||
|
(Increase) decrease in other assets |
|
(361 |
) |
1,115 |
|
(196 |
) |
1,549 |
|
||||
|
(Decrease) increase in accounts payable and accrued expenses |
|
(788 |
) |
775 |
|
(1,072 |
) |
133 |
|
||||
|
Increase in due to affiliates |
|
(1,343 |
) |
|
|
(1,343 |
) |
|
|
||||
|
Cash provided by operating activities |
|
7,705 |
|
14,037 |
|
20,398 |
|
24,374 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
||||
|
Real estate acquisitions and improvements |
|
(407 |
) |
(335 |
) |
(1,176 |
) |
(1,118 |
) |
||||
|
Cash provided used for investing activities |
|
(407 |
) |
(335 |
) |
(1,176 |
) |
(1,118 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
||||
|
Repayment of mortgage loans |
|
|
|
(1,277 |
) |
(134 |
) |
(1,661 |
) |
||||
|
Borrowings on secured credit facility |
|
272,000 |
|
|
|
272,000 |
|
|
|
||||
|
Costs of establishing secured credit facility |
|
(6,235 |
) |
|
|
(6,235 |
) |
|
|
||||
|
Payments on secured credit facility |
|
(228,125 |
) |
|
|
(228,125 |
) |
|
|
||||
|
Proceeds from issuance of common stock, net |
|
209,389 |
|
|
|
209,389 |
|
|
|
||||
|
Equity distributions |
|
(255,442 |
) |
(12,784 |
) |
(265,763 |
) |
(21,304 |
) |
||||
|
Cash used for financing activities |
|
(8,413 |
) |
(14,061 |
) |
(18,868 |
) |
(22,965 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
(Decrease) Increase in cash and cash equivalents |
|
(1,115 |
) |
(359 |
) |
354 |
|
291 |
|
||||
|
Cash and cash equivalents at beginning of period |
|
1,566 |
|
716 |
|
97 |
|
66 |
|
||||
|
Cash and cash equivalents at end of period |
|
$ |
451 |
|
$ |
357 |
|
$ |
451 |
|
$ |
357 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Supplemental cash flow information: |
|
|
|
|
|
|
|
|
|
||||
|
Interest paid |
|
$ |
1,932 |
|
$ |
91 |
|
$ |
1,932 |
|
$ |
111 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-cash operating activities |
|
|
|
|
|
|
|
|
|
||||
|
Equity distributions |
|
$ |
8,047 |
|
$ |
|
|
$ |
8,047 |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-cash financing activities: |
|
|
|
|
|
|
|
|
|
||||
|
Costs of establishing credit facility |
|
$ |
650 |
|
$ |
|
|
$ |
650 |
|
$ |
|
|
|
Costs for issuance of common stock |
|
3,813 |
|
|
|
3,813 |
|
|
|
||||
12
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
CALCULATION OF EBITDA
(amounts in thousands)
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
||||||||
|
|
|
6/30/2009 |
|
6/30/2008 |
|
6/30/2009 |
|
6/30/2008 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income |
|
$ |
5,869 |
|
$ |
8,340 |
|
$ |
14,384 |
|
$ |
16,411 |
|
|
Plus: interest expense |
|
2,360 |
|
46 |
|
2,360 |
|
102 |
|
||||
|
Plus: depreciation and amortization |
|
3,797 |
|
3,520 |
|
7,361 |
|
7,018 |
|
||||
|
EBITDA |
|
$ |
12,026 |
|
$ |
11,906 |
|
$ |
24,105 |
|
$ |
23,531 |
|
We compute EBITDA, or earnings before interest, taxes, depreciation and amortization, as net income plus interest expense, income tax expense, if any, and depreciation and amortization. We consider EBITDA to be an appropriate measure of our performance, along with net income and cash flow from operating, investing and financing activities. We believe EBITDA provides useful information to investors because by excluding the effects of certain historical costs, such as interest expense and depreciation and amortization expense, EBITDA can facilitate a comparison of our current operating performance with our past operating performance and of operating performances among REITs. EBITDA does not represent cash generated by operating activities in accordance with generally accepted accounting principles, or GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity. Also, some REITs may calculate EBITDA differently than us.
13
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
CALCULATION AND RECONCILIATION OF PROPERTY NET OPERATING INCOME (NOI)
(amounts in thousands)
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
||||||||
|
|
|
6/30/2009 |
|
6/30/2008 |
|
6/30/2009 |
|
6/30/2008 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Calculation of NOI: |
|
|
|
|
|
|
|
|
|
||||
|
Rental income (1) |
|
$ |
19,405 |
|
$ |
18,862 |
|
$ |
38,648 |
|
$ |
37,519 |
|
|
Operating expenses |
|
(6,548 |
) |
(6,222 |
) |
(12,974 |
) |
(12,521 |
) |
||||
|
Property net operating income (NOI) |
|
$ |
12,857 |
|
$ |
12,640 |
|
$ |
25,674 |
|
$ |
24,998 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Reconciliation of NOI to Net Income: |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Property net operating income |
|
$ |
12,857 |
|
$ |
12,640 |
|
$ |
25,674 |
|
$ |
24,998 |
|
|
Depreciation and amortization |
|
(3,797 |
) |
(3,520 |
) |
(7,361 |
) |
(7,018 |
) |
||||
|
General and administrative |
|
(873 |
) |
(746 |
) |
(1,613 |
) |
(1,492 |
) |
||||
|
Operating income |
|
8,187 |
|
8,374 |
|
16,700 |
|
16,488 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest income |
|
42 |
|
12 |
|
44 |
|
25 |
|
||||
|
Interest expense |
|
(2,360 |
) |
(46 |
) |
(2,360 |
) |
(102 |
) |
||||
|
Net income |
|
$ |
5,869 |
|
$ |
8,340 |
|
$ |
14,384 |
|
$ |
16,411 |
|
|
(1) |
Includes non cash straight line rent of approximately ($109,000) and ($12,000) for the three months ended June 30, 2009 and 2008, respectively and ($225,000) and ($29,000) for the six months ended June 30, 2009 and 2008, respectively. |
We compute NOI as shown above. We consider NOI to be an appropriate supplemental measure to net income because it helps both investors and management to understand the operations of our properties. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our results of operations because it reflects only those income and expense items that are incurred at the property level. Our management also uses NOI to evaluate individual and company wide property level performance. NOI excludes certain components from the calculation of net income in order to provide results that are more closely related to our properties results of operations. NOI does not represent cash generated by operating activities in accordance with GAAP, and should not be considered an alternative to net income, net income available or cash flow from operating activities as a measure of financial performance.
14
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
CALCULATION OF FUNDS FROM OPERATIONS (FFO)
(amounts in thousands, except per share data)
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
||||||||
|
|
|
6/30/2009 |
|
6/30/2008 |
|
6/30/2009 |
|
6/30/2008 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income (1) |
|
$ |
5,869 |
|
$ |
8,340 |
|
$ |
14,384 |
|
$ |
16,411 |
|
|
Plus: depreciation and amortization |
|
3,797 |
|
3,520 |
|
7,361 |
|
7,018 |
|
||||
|
FFO available for common shareholders |
|
$ |
9,666 |
|
$ |
11,860 |
|
$ |
21,745 |
|
$ |
23,429 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average common shares outstanding |
|
12,384 |
|
|
|
8,590 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
FFO available for common shareholders per share |
|
$ |
0.78 |
|
N/A |
|
$ |
2.53 |
|
N/A |
|
||
|
(1) |
Includes non cash straight line rent of approximately ($109,000) and ($12,000) for the three months ended June 30, 2009 and 2008, respectively and ($225,000) and ($29,000) for the six months ended June 30, 2009 and 2008, respectively. |
We compute FFO as shown above. Our calculation of FFO is consistent with the National Association of Real Estate Investment Trusts, or NAREIT, definition of FFO. We consider FFO to be an appropriate measure of performance for a REIT, along with net income and cash flow from operating, investing and financing activities. We believe that FFO provides useful information to investors because by excluding the effects of certain historical amounts, such as depreciation expense, FFO can facilitate a comparison of operating performances among REITs. FFO does not represent cash generated by operating activities in accordance with GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity. FFO is one important factor considered by our Board of Trustees in determining the amount of distributions to shareholders. Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our secured revolving credit facility, the availability of debt and equity capital to us and our expectations of future capital requirements and operating performance.
15
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
DEBT SUMMARY
(dollars in thousands)
|
|
|
|
|
Interest |
|
Principal |
|
Maturity |
|
Due at |
|
Years to |
|
||
|
|
|
|
|
Rate |
|
Balance |
|
Date |
|
Maturity |
|
Maturity |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
$250 million secured revolving credit facility |
|
(LIBOR, subject to a 2.00% floor, or another specified index plus a margin, which varies based upon our leverage) |
|
5.25 |
% |
$ |
43,875 |
|
4/24/2012 |
|
$ |
43,875 |
|
2.8 |
|
16
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
LEVERAGE RATIOS AND COVERAGE RATIOS
|
|
|
As of and For the
|
|
|
|
|
6/30/2009 |
|
|
|
|
|
|
|
Leverage Ratios: |
|
|
|
|
|
|
|
|
|
Total debt / total assets |
|
10.6 |
% |
|
Total debt / gross book value of real estate assets (1) |
|
8.7 |
% |
|
Total debt / total market capitalization |
|
9.1 |
% |
|
Total debt / total book capitalization |
|
10.9 |
% |
|
Secured debt / total assets |
|
10.6 |
% |
|
|
|
|
|
|
Coverage Ratios: |
|
|
|
|
|
|
|
|
|
EBITDA / interest expense |
|
5.1 |
x |
(1) Gross book value of real estate assets is real estate properties, at cost, including purchase price allocations less impairment writedowns, if any.
17
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
TENANT IMPROVEMENTS, LEASING COSTS AND CAPITAL IMPROVEMENTS
(dollars and sq. ft. in thousands, except per sq. ft. data)
|
|
|
For the Three Months Ended |
|
|||||||||||||
|
|
|
6/30/2009 |
|
3/31/2009 |
|
12/31/2008 |
|
9/30/2008 |
|
6/30/2008 |
|
|||||
|
Tenant improvements (TI) |
|
$ |
233 |
|
$ |
555 |
|
$ |
79 |
|
$ |
465 |
|
$ |
173 |
|
|
Leasing costs (LC) |
|
|
|
|
|
210 |
|
22 |
|
164 |
|
|||||
|
Total TI and LC |
|
233 |
|
555 |
|
289 |
|
487 |
|
337 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Building improvements (1) |
|
133 |
|
23 |
|
24 |
|
|
|
24 |
|
|||||
|
Development, redevelopment and other activities (2) |
|
|
|
|
|
236 |
|
|
|
16 |
|
|||||
|
Total capital improvements, including TI and LC |
|
$ |
366 |
|
$ |
578 |
|
$ |
549 |
|
$ |
487 |
|
$ |
377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Sq. ft. beginning of period |
|
3,304 |
|
3,304 |
|
3,294 |
|
3,294 |
|
3,294 |
|
|||||
|
Sq. ft. end of period (3) |
|
3,304 |
|
3,304 |
|
3,304 |
|
3,294 |
|
3,294 |
|
|||||
|
Average sq. ft. during period |
|
3,304 |
|
3,304 |
|
3,299 |
|
3,294 |
|
3,294 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Building improvements per average sq. ft. during period |
|
$ |
0.04 |
|
$ |
0.01 |
|
$ |
0.01 |
|
$ |
|
|
$ |
0.01 |
|
|
(1) |
Building improvements generally include construction costs, expenditures to replace obsolete building components, and expenditures that extend the useful life of existing assets. |
|
(2) |
Development, redevelopment and other activities generally include non-recurring expenditures or expenditures that we believe increase the value of our existing properties. |
|
(3) |
Sq. ft. changes resulted from the acquisition of an approximately 10,000 sq. ft. property. |
18
PROPERTY AND LEASING INFORMATION
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
PROPERTY SCHEDULE
(dollars in thousands)
|
|
|
|
|
|
|
|
|
% NOI |
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
Location |
|
Sq Ft. |
|
% Sq. Ft. |
|
% Rental Income(1) |
|
ended 6/30/09 (2) |
|
|
1 |
201 Indianola Avenue, Phoenix AZ |
|
97,145 |
|
2.9 |
% |
4.8 |
% |
4.8 |
% |
|
2 |
9797 Aero Drive, San Diego CA |
|
94,272 |
|
2.9 |
% |
2.5 |
% |
1.9 |
% |
|
3 |
4560 Viewridge Road, San Diego CA |
|
147,955 |
|
4.4 |
% |
4.2 |
% |
4.5 |
% |
|
4 |
9174 Sky Park Centre, San Diego CA |
|
43,918 |
|
1.3 |
% |
1.4 |
% |
1.5 |
% |
|
5 |
5045 East Butler Ave, Fresno CA |
|
531,976 |
|
16.1 |
% |
11.8 |
% |
15.0 |
% |
|
6 |
16194 West 45th Street, Golden CO |
|
43,232 |
|
1.3 |
% |
2.0 |
% |
1.9 |
% |
|
7 |
7201 West Mansfield, Lakewood CO |
|
71,208 |
|
2.2 |
% |
2.2 |
% |
2.3 |
% |
|
8 |
7301 West Mansfield, Lakewood CO |
|
70,904 |
|
2.1 |
% |
2.1 |
% |
2.4 |
% |
|
9 |
7401 West Mansfield, Lakewood CO |
|
70,884 |
|
2.1 |
% |
2.4 |
% |
2.5 |
% |
|
10 |
20 Massachusetts Avenue, Washington DC |
|
339,541 |
|
10.3 |
% |
18.8 |
% |
18.3 |
% |
|
11 |
1 Corporate Boulevard, Atlanta, GA |
|
37,554 |
|
1.1 |
% |
0.8 |
% |
0.7 |
% |
|
12 |
8 Corporate Boulevard, Atlanta GA |
|
151,252 |
|
4.6 |
% |
4.9 |
% |
4.1 |
% |
|
13 |
10 Corporate Boulevard, Atlanta GA |
|
32,828 |
|
1.0 |
% |
0.7 |
% |
0.6 |
% |
|
14 |
11 Corporate Boulevard, Atlanta GA |
|
32,158 |
|
1.0 |
% |
0.7 |
% |
0.6 |
% |
|
15 |
12 Corporate Boulevard, Atlanta GA |
|
99,084 |
|
3.0 |
% |
2.2 |
% |
2.1 |
% |
|
16 |
12 Executive Park Drive, Atlanta GA |
|
128,390 |
|
3.9 |
% |
4.1 |
% |
4.1 |
% |
|
17 |
20400 Century Boulevard, Germantown MD |
|
80,550 |
|
2.4 |
% |
1.7 |
% |
2.2 |
% |
|
18 |
1401 Rockville Pike, Rockville MD |
|
188,444 |
|
5.7 |
% |
8.5 |
% |
8.8 |
% |
|
19 |
4201 Patterson Ave, Baltimore MD |
|
84,674 |
|
2.6 |
% |
1.6 |
% |
1.3 |
% |
|
20 |
2645 and 2655 Long Lake Road, Roseville MN |
|
61,426 |
|
1.9 |
% |
1.4 |
% |
1.2 |
% |
|
21 |
4241 & 4300 NE 34th Street, Kansas City MO |
|
98,073 |
|
3.0 |
% |
1.9 |
% |
3.0 |
% |
|
22 |
130-138 Delaware Avenue, Buffalo NY |
|
124,647 |
|
3.8 |
% |
3.8 |
% |
2.9 |
% |
|
23 |
110 Centerview Drive, Columbia SC |
|
71,580 |
|
2.2 |
% |
1.3 |
% |
1.3 |
% |
|
24 |
701 Clay Rd., Waco TX |
|
137,782 |
|
4.2 |
% |
2.8 |
% |
1.9 |
% |
|
25 |
5600 Columbia Pike, Falls Church VA |
|
164,746 |
|
5.0 |
% |
4.8 |
% |
4.0 |
% |
|
26 |
2420 Stevens Center Place, Richland WA |
|
92,914 |
|
2.8 |
% |
2.5 |
% |
2.8 |
% |
|
27 |
2430 Stevens Center Place, Richland WA |
|
47,238 |
|
1.4 |
% |
1.3 |
% |
1.4 |
% |
|
28 |
882 TJ Jackson Drive, Falling Waters WV |
|
36,818 |
|
1.1 |
% |
0.9 |
% |
0.3 |
% |
|
29 |
5353 Yellowstone Road, Cheyenne WY |
|
122,647 |
|
3.7 |
% |
1.9 |
% |
1.6 |
% |
|
|
|
|
3,303,840 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
|
(1) |
Rental income is the annualized rent from tenants pursuant to signed leases as of 6/30/2009, plus expense reimbursements; excludes lease value amortization. |
|
(2) |
Property net operating income, or NOI, is defined as property rental income less property operating expenses; see page 14 for the calculation and reconciliation of NOI to Net Income. |
We compute NOI as shown above. We consider NOI to be an appropriate supplemental measure to net income because it helps both investors and management to understand the operations of our properties. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our results of operations because it reflects only those income and expense items that are incurred at the property level. Our management also uses NOI to evaluate individual and company wide property level performance. NOI excludes certain components from the calculation of net income in order to provide results that are more closely related to our properties results of operations. NOI does not represent cash generated by operating activities in accordance with GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance.
20
Government Properties Income Trust
Supplemental Operating and Financial Data
June 30, 2009
TENANT LIST
(sq. ft. in thousands)
|
|
|
|
|
% of Total |
|
% of Rental |
|
|
|
Tenant |
|
Sq. Ft. (1) |
|
Sq. Ft. (1) |
|
Income (2) |
|
|
|
|
US Government: |
|
|
|
|
|
|
|
|
1 |
Centers for Disease Control |
|
481 |
|
15 |
% |
13 |
% |
|
2 |
Internal Revenue Service |
|
532 |
|
16 |
% |
12 |
% |
|
3 |
Department of Justice |
|
229 |
|
7 |
% |
12 |
% |
|
4 |
Immigration and Customs Enforcement |
|
235 |
|
7 |
% |
11 |
% |
|
5 |
Federal Bureau of Investigation |
|
191 |
|
6 |
% |
7 |
% |
|
6 |
Department of Energy |
|
206 |
|
6 |
% |
6 |
% |
|
7 |
Food and Drug Administration |
|
101 |
|
3 |
% |
5 |
% |
|
8 |
Defense Information Systems Agency |
|
163 |
|
5 |
% |
5 |
% |
|
9 |
Bureau of Reclamation |
|
142 |
|
4 |
% |
4 |
% |
|
10 |
Drug Enforcement Administration |
|
148 |
|
4 |
% |
4 |
% |
|
11 |
Veterans Affairs |
|
175 |
|
5 |
% |
4 |
% |
|
12 |
Department of the Interior |
|
71 |
|
2 |
% |
2 |
% |
|
13 |
Environmental Protection Agency |
|
43 |
|
1 |
% |
2 |
% |
|
14 |
Bureau of Land Management |
|
123 |
|
4 |
% |
2 |
% |
|
15 |
Financial Management Service |
|
88 |
|
3 |
% |
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
State Government: |
|
|
|
|
|
|
|
|
1 |
State of Maryland Health & Human Services |
|
85 |
|
3 |
% |
2 |
% |
|
2 |
State of Minnesota - Lottery |
|
61 |
|
2 |
% |
1 |
% |
|
3 |
State of California - Department of Motor Vehicles & Department of Water Quality Control |
|
44 |
|
1 |
% |
1 |
% |
|
4 |
State of South Carolina |
|
72 |
|
2 |
% |
1 |
% |
|
|
|
|
|
|
|
|
|
|