NEWTON, Mass., Dec 31, 2009 (BUSINESS WIRE) -- Government Properties Income Trust (NYSE: GOV) today announced that it has filed a Form S-11 with the Securities and Exchange Commission, or SEC, in anticipation of a proposed public offering of 6,500,000 common shares of beneficial interest. Morgan Stanley will be a bookrunning manager for the offering.

The use of proceeds for the proposed public offering is to reduce amounts outstanding under GOV's secured revolving credit facility and to fund its business activities, including the funding of some or all of the purchase price of a pending acquisition with a purchase price of $43.7 million, which includes the assumption of $24.8 million of mortgage debt. GOV has primarily used borrowings under its secured revolving credit facility to fund the purchase price of four properties it acquired since completion of its initial public offering on June 8, 2009 for an aggregate purchase price of $89.3 million.

A registration statement relating to these securities has been filed with the SEC, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

No public distribution of the preliminary prospectus, which is part of the registration statement referenced above, is being made at this time. However, copies of the preliminary prospectus may be obtained from the SEC at its website: www.sec.gov.

Government Properties Income Trust is a real estate investment trust, which owns properties located throughout the United States leased primarily to the U.S. Government and state governments. GOV is headquartered in Newton, MA.

WARNINGS REGARDING FORWARD LOOKING STATEMENTS

THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND THE FEDERAL SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON GOV'S PRESENT EXPECTATIONS AND INTENTIONS, BUT THESE STATEMENTS ARE NOT GUARANTEED. FOR EXAMPLE:

• THIS PRESS RELEASE STATES THAT GOV HAS FILED AN S-11 IN ANTICIPATION OF A PUBLIC OFFERING OF COMMON SHARES OF BENEFICIAL INTEREST. IN ORDER FOR A PUBLIC OFFERING OF COMMON SHARES OF BENEFICIAL INTEREST TO BE COMPLETED, GOV'S S-11 FIRST MUST BE DECLARED EFFECTIVE BY THE SEC. GOV HAS NO CONTROL OVER THIS PROCESS OR THE TIMING OF THIS REVIEW AND, IN FACT, THE SEC MAY NOT DECLARE GOV'S S-11 TO BE EFFECTIVE.
• THIS PRESS RELEASE STATES THAT GOV ANTICIPATES OFFERING 6,500,000 COMMON SHARES. THE NUMBER OF SHARES TO BE OFFERED MAY BE INCREASED OR DECREASED BECAUSE OF MARKET CONDITIONS OR OTHERWISE. GOV MAY HAVE NO CONTROL OVER MARKET CONDITIONS.
• THIS PRESS RELEASE STATES THAT GOV MAY USE SOME OF THE PROCEEDS OF THE PROPOSED OFFERING TO FUND SOME OR ALL OF THE PURCHASE PRICE OF A PENDING ACQUISITION. THIS PENDING ACQUISITION IS SUBJECT TO CLOSING CONDITIONS CUSTOMARY IN REAL ESTATE ACQUISITIONS AND NO ASSURANCE CAN BE GIVEN THAT THIS ACQUISITION WILL BE CONSUMATED.

INVESTORS SHOULD NOT PLACE UNDUE RELIANCE UPON ANY FORWARD LOOKING STATEMENT.

SOURCE: Government Properties Income Trust

Government Properties Income Trust
Timothy A. Bonang, 617-219-1440
Vice President, Investor Relations
or
Katherine L. Johnston, 617-219-1440
Manager, Investor Relations