NEWTON, Mass., Aug 10, 2009 (BUSINESS WIRE) -- 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,
GOV's 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, GOV's 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.
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 GOV's formation transaction
and initial public offering had occurred on January 1, 2009, GOV's
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 17th.
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 GOV's website, which is located at www.govreit.com.
Participants wanting to access the webcast should visit the company's
web site about five minutes before the call. The archived webcast will
be available for replay on GOV's web site for about one week after the
call.
Supplemental Data:
A copy of GOV's Second Quarter 2009 Supplemental Operating and Financial
Data is available for download at GOV's web site, www.govreit.com.
Government Properties Income Trust is a real estate investment trust, or
REIT, which owns properties located throughout the United States leased
primarily to the U.S. Government and several state government tenants.
As of June 30, 2009, GOV owned 29 properties with 3.3 million square
feet. GOV is headquartered in Newton, Massachusetts.
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.
| | | | |
Government Properties Income Trust Condensed Consolidated Statements of Income and Funds from
Operations (amounts in thousands, except per share data) (unaudited) |
| | | | |
| |
Three Months Ended June 30,
| |
Six Months Ended June 30,
|
| |
2009
| |
2008
| |
2009
| |
2008
|
| | |
|
Rental income
| |
$
|
19,405
| | |
$
|
18,862
| | |
$
|
36,648
| | |
$
|
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
| |
| | | | | | | | |
| | | | | | | | |
|
Calculation of Funds from Operations, or FFO (1):
| | | | | | | | |
|
Net income
| |
$
|
5,869
| | |
$
|
8,340
| | |
$
|
14,384
| | |
$
|
16,411
| |
|
Plus: depreciation and amortization
| | |
3,797
| | | |
3,520
| | | |
7,361
| | | |
7,018
| |
|
FFO
| |
$
|
9,666
| | |
$
|
11,860
| | |
$
|
21,745
| | |
$
|
23,429
| |
| | | | | | | | |
| | | | | | | | |
|
Weighted average common shares outstanding
| | |
12,384
| | | |
--
| | | |
8,590
| | | |
--
| |
| | | | | | | | |
| | |
|
Per common share:
| | | | | | | | |
|
Net income
| |
$
|
0.47
| | | |
--
| | |
$
|
1.67
| | | |
--
| |
|
FFO
| |
$
|
0.78
| | | |
--
| | |
$
|
2.53
| | | |
--
| |
| | | | | | | | |
| (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.
|
| | | | | |
Government Properties Income Trust Condensed Consolidated Balance Sheets (amounts in thousands, except share data) (unaudited) |
| | | | | |
| | | June 30,
| | December 31, |
| | 2009 | | 2008 |
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
| |
|
Deferred leasing costs, net
| | |
1,538
| | | |
1,757
| |
|
Deferred financing costs, net
| | |
6,458
| | | |
-
| |
|
Rents receivable
| | |
6,872
| | | |
14,593
| |
|
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 credit facility
| | |
43,875
| | | |
-
| |
|
Accounts payable and accrued expenses
| | |
5,795
| | | |
3,036
| |
|
Acquired real estate lease obligations, net
| | |
2,750
| | | |
3,151
| |
| | |
52,420
| | | |
6,321
| |
|
Shareholders' equity:
| | | | | |
|
Common shares of beneficial interest, $.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
| |
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.
SOURCE: Government Properties Income Trust
Government Properties Income Trust
Timothy A. Bonang, Director of Investor Relations
Katherine L. Johnston, Manager of Investor Relations
617-219-1440