NEWTON, Mass., Feb 22, 2010 (BUSINESS WIRE) -- Government Properties Income Trust (NYSE: GOV) today announced financial results for the quarter and year ended December 31, 2009. GOV completed its initial public offering, or IPO, 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 December 31, 2009:

Net income available for common shareholders was $5.4 million for the quarter ended December 31, 2009, compared to $8.2 million for the same quarter last year. Net income per share (EPS) for the quarter ended December 31, 2009 was $0.25. For the quarter ended December 31, 2008, GOV did not have any outstanding shares.

Funds from operations (FFO) for the quarter ended December 31, 2009 was $10.2 million, or $0.48 per share compared to FFO for the quarter ended December 31, 2008 of $11.8 million.

The weighted average number of common shares outstanding was 21,481,350 for the quarter ended December 31, 2009.

Results for year ended December 31, 2009:

Net income was $26.0 million for the year ended December 31, 2009, compared to $31.8 million for the same period last year. Net income per share (EPS) for the year ended December 31, 2009 was $1.72. For the year ended December 31, 2008, GOV did not have any outstanding shares.

Funds from operations (FFO) for the year ended December 31, 2009 was $42.2 million, or $2.80 per share, compared to FFO for the year ended December 31, 2008 of $46.0 million.

The weighted average number of common shares outstanding totaled 15,082,204 for the year ended December 31, 2009. If GOV's formation transaction and IPO had occurred on January 1, 2009, GOV's weighted average number of common shares outstanding would have been 21,459,190.

Recent Investment Activities:

Since the completion of its IPO, GOV has acquired five properties and it has entered into a binding purchase and sale agreement to acquire one additional property for an aggregate purchase price of $161.7 million, which includes the assumption of $35.3 million of mortgage debt that is not currently prepayable and excludes closing costs:

• In August 2009, GOV acquired one industrial property located in Nashua, NH with 321,900 rentable square feet. This property is 100% leased to the U.S. Postal Service. The purchase price was $18.2 million.
• In November 2009, GOV entered a binding purchase and sale agreement to acquire an office and warehouse property located in Landover, MD with 266,000 rentable square feet. This property is 100% leased to the U.S. Government and occupied by the Defense Intelligence Agency. The purchase price is $43.7 million, which includes the assumption of $24.8 million of mortgage debt. GOV has completed its acquisition diligence for this property and expects to acquire this property and assume the mortgage debt during the first quarter of 2010; however, no assurance can be given that this acquisition will be consummated in that time period or at all.
• In December 2009, GOV acquired three office properties for an aggregate purchase price of $71.1 million. The first December acquisition was a property located in Sacramento, CA with 163,425 rentable square feet. This property is 98.1% leased, with the majority leased to the state of California and occupied by the California Department of Finance. The purchase price was $40.0 million.
• The second December acquisition was also located Sacramento, CA with 110,500 rentable square feet. This property is 100% leased to the state of California and occupied as the headquarters for the California National Guard. The purchase price was $15.1 million.
• The third December acquisition was a property located in Arlington Heights, IL with 57,770 rentable square feet. This property is 100% leased to the U.S. Government and occupied as the national training center for the Occupational Health and Safety Administration. The purchase price was $16.0 million.
• In January 2010, GOV acquired one office property located in Lakewood, CO with 166,745 rentable square feet. This property is 100% leased to the U.S. Government and occupied as the intermountain regional headquarters for the National Park Service. The purchase price was $28.7 million, which included the assumption of $10.5 million of mortgage debt.

Recent Financing Activities:

On January 14, 2010, GOV issued 8,500,000 common shares at a price of $21.50 per share in a public offering. On January 19, 2010, the underwriters exercised their over allotment option in full to purchase 1,275,000 additional common shares. The sale of 9,775,000 common shares closed on January 21, 2010 and raised gross proceeds of $210.2 million. The funds from this offering were used to reduce amounts outstanding under GOV's secured revolving credit facility and to fund business activities, including funding some of GOV's acquisitions. As of February 19, 2010, GOV has no amounts outstanding on its $250 million secured revolving credit facility and approximately $44 million of cash available for investment and general business purposes.

Conference Call:

On Monday, February 22, 2009, at 1:00 p.m. Eastern Time, Adam Portnoy, President and Managing Trustee, and David Blackman, Chief Financial Officer, will host a conference call to discuss the fourth quarter 2009 results.

The conference call telephone number is (888) 596-2633. Participants calling from outside the United States and Canada should dial (913) 312-1295. 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, March 1st. To hear the replay, dial (719) 457-0820. The replay pass code is 3113174.

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. The taping and retransmission in any way of GOV's fourth quarter and year end conference call is strictly prohibited without the prior written consent of GOV.

Supplemental Data:

A copy of GOV's Fourth 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 December 31, 2009, GOV owned 33 properties with 4.0 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. GOV's website, which is referenced above, is not incorporated as a part of this press release.

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, Vice President, Investor Relations
617-219-1440