-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Q7hL7Aa0LxdPldlM9VKTJhlTabtt6YkJSTV52R13J8HuX98snUlDcGBSNIJjEWZV ZCg2Yc6w5kCkrEtuNZzn3g== 0001104659-05-006810.txt : 20050215 0001104659-05-006810.hdr.sgml : 20050215 20050215172008 ACCESSION NUMBER: 0001104659-05-006810 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20050215 ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050215 DATE AS OF CHANGE: 20050215 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HRPT PROPERTIES TRUST CENTRAL INDEX KEY: 0000803649 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 046558834 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-09317 FILM NUMBER: 05618248 BUSINESS ADDRESS: STREET 1: 400 CENTRE ST CITY: NEWTON STATE: MA ZIP: 02458 BUSINESS PHONE: 6177968350 MAIL ADDRESS: STREET 1: 400 CENTRE STREET CITY: NEWTON STATE: MA ZIP: 02458 FORMER COMPANY: FORMER CONFORMED NAME: HEALTH & RETIREMENT PROPERTIES TRUST DATE OF NAME CHANGE: 19940811 FORMER COMPANY: FORMER CONFORMED NAME: HEALTH & REHABILITATION PROPERTIES TRUST DATE OF NAME CHANGE: 19920703 8-K/A 1 a05-3520_28ka.htm 8-K/A

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K/A

(Amendment No. 1)

 

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): February 15, 2005

 

Commission File Number 1-9317

 

HRPT PROPERTIES TRUST

 

Maryland

 

04-6558834

(State of Organization)

 

(IRS Employer Identification No.)

 

400 Centre Street, Newton, Massachusetts 02458

 

617-332-3990

 

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))

 

 


 

Explanatory Note

 

The purpose of this amendment is to amend Exhibit 99.1 and Exhibit 99.2 to the Current Report on Form 8-K (the “Original Form 8-K”) filed by HRPT Properties Trust (the “Company”) on February 15, 2005, to correct two immaterial typographical errors in Exhibit 99.1 and to remove the first of two tables labeled “Same Property Results and Analysis by Major Market” appearing in Exhibit 99.2 which was inadvertently included.  Exhibits 99.1 and 99.2 to the Original Form 8-K, as corrected, are attached hereto and supersede in their entirety the respective exhibits furnished pursuant to the Original Form 8-K.

 

Item 9.01.  Financial Statements and Exhibits.

 

(c)           Exhibits

 

The Company hereby furnishes the following exhibits:

 

99.1         Press release dated February 15, 2005.

 

99.2         Fourth Quarter 2004 Supplemental Operating and Financial Data.

 

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.

 

 

HRPT PROPERTIES TRUST

 

 

 

By:

/s/ John C. Popeo

 

 

 

John C. Popeo

 

 

Treasurer and Chief Financial Officer

 

 

Dated: February 15, 2005

 

2

 EX-99.1 2 a05-3520_2ex99d1.htm EX-99.1

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

Contact:

 

 

Timothy A. Bonang

 

 

Manager of Investor Relations

 

 

(617) 796-8149

 

 

www.hrpreit.com

 

HRPT Properties Trust

Announces Financial Results for the Quarter and Year Ended

December 31, 2004

 

Newton, MA (February 15, 2005): HRPT Properties Trust (NYSE: HRP) today announced financial results for the fourth quarter and year ended December 31, 2004.

 

Results for the quarter ended December 31, 2004:

 

Net income available for common shareholders was $30.5 million for the quarter ended December 31, 2004, compared to $23.7 million for the same quarter last year.  Net income available for common shareholders per share (EPS) for the quarters ended December 31, 2004 and 2003 was $0.17 each.

 

Funds from operations (FFO) available for common shareholders for the quarter ended December 31, 2004, were $56.0 million, or $0.32 per share.  This compares to FFO available for common shareholders for the quarter ended December 31, 2003, of $44.7 million, or $0.31 per share.

 

The weighted average number of common shares outstanding totaled 177,316,525 and 142,773,895, for the quarters ended December 31, 2004 and 2003, respectively.

 

Results for the year ended December 31, 2004:

 

Net income available for common shareholders was $116.8 million for the year ended December 31, 2004, compared to $68.4 million last year.  EPS for the years ended December 31, 2004 and 2003 was $0.66 and $0.50, respectively.

 

FFO available for common shareholders for the year ended December 31, 2004, were $215.2 million, or $1.22 per share.  This compares to FFO available for common shareholders for the year ended December 31, 2003, of $174.3 million, or $1.28 per share.

 

The weighted average number of common shares outstanding totaled 176,156,909 and 136,270,314, for the years ended December 31, 2004 and 2003, respectively.

 


 

Occupancy and Leasing Results:

 

As of December 31, 2004, 93.0% of HRP’s total square feet was leased, compared to 93.5% leased as of December 31, 2003.

 

HRP signed new leases for 563,000 square feet and lease renewals for 869,000 square feet during the quarter ended December 31, 2004, for weighted average rental rates that were 1% above prior rents.  HRP signed new leases for 1.7 million square feet and lease renewals for 2.8 million square feet during the year ended December 31, 2004, at weighted average rental rates that were 3% below prior rents.

 

Average lease terms for leases signed during the fourth quarter of 2004 were 8.9 years.  Average lease terms for leases signed during the year ended December 31, 2004 were 8.7 years.  Commitments for tenant improvement and leasing commission (TI/LC) costs for leases signed during the quarter ended December 31, 2004 totaled $30.82 per square foot on a weighted average basis.  Commitments for TI/LC costs for leases signed during the year ended 2004 totaled $28.28 per square foot on a weighted average basis.

 

Investment Activities:

 

During the quarter ended December 31, 2004, HRP acquired nine buildings with 892,000 square feet for $84.3 million.  HRP acquired 136 buildings with 8.3 million square feet for $818.3 million during the year ended December 31, 2004.

 

Also during the quarter ended December 31, 2004, HRP sold one million common shares of Senior Housing Properties Trust (SNH), a former subsidiary.  After this sale, HRP owned 8.7 million SNH common shares, or 12.6% of SNH’s total common shares outstanding at December 31, 2004.  HRP sold a total of 4.1 million SNH common shares during the year ended December 31, 2004.

 

Financing Activities:

 

Subsequent to year end in January 2005, HRP amended its previously existing $560 million unsecured revolving credit facility.  HRP increased the available borrowing amount to $750 million and extended the maturity date to April 2009, with an option to extend the maturity by one additional year.  The annual interest payable for drawn amounts under the facility was reduced from LIBOR plus 0.80% to LIBOR plus 0.65%.  Various other changes were made in the facility, and, in certain circumstances, the amount of unsecured borrowings available under this facility may be increased to $1.5 billion.

 

2


 

Conference Call:

 

On Tuesday, February 15, 2005, at 11:00 a.m. Eastern Time, Adam Portnoy, executive vice president, and John Popeo, chief financial officer, will host a conference call to discuss the results for the quarter and year ended December 31, 2004.

 

The conference call telephone number is (800) 811-7286.  Participants calling from outside the United States and Canada should dial (913) 981-4902.  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 February 22, 2005.  To hear the replay, dial (719) 457-0820. The replay pass code is 7218426.

 

A live oral webcast of the conference call will also be available in a listen-only mode on HRP’s web site.  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 HRP’s web site for about one week after the call.

 

Supplemental Data:

 

A copy of HRP’s Fourth Quarter 2004 Supplemental Operating and Financial Data is available for download at HRP’s web site.

 

HRPT Properties Trust is a real estate investment trust, or REIT, which primarily owns office buildings located throughout the United States.  As of December 31, 2004, HRP owned 375 properties with 44.2 million square feet, including almost 10 million square feet of leased commercial and industrial lands in Oahu, HI.  HRP is headquartered in Newton, Massachusetts.

 

3


 

HRPT Properties Trust

Statements of Income and Funds from Operations

(in thousands, except per share data)

 

 

 

Quarter Ended
December 31,

 

Year Ended
December 31,

 

 

 

2004

 

2003

 

2004

 

2003

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Rental income

 

$

167,551

 

$

130,679

 

$

603,229

 

$

500,316

 

Total revenues

 

167,551

 

130,679

 

603,229

 

500,316

 

Expenses:

 

 

 

 

 

 

 

 

 

Operating expenses

 

65,049

 

51,068

 

227,853

 

192,813

 

Depreciation and amortization

 

33,097

 

24,330

 

112,380

 

93,273

 

General and administrative

 

6,696

 

5,015

 

25,170

 

19,338

 

Total expenses

 

104,842

 

80,413

 

365,403

 

305,424

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

62,709

 

50,266

 

237,826

 

194,892

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

184

 

157

 

638

 

411

 

Interest expense (including amortization of note discounts and premiums and deferred financing fees of $755, $1,509, $4,341 and $5,975, respectively)

 

(35,363

)

(26,957

)

(118,212

)

(101,144

)

Loss on early extinguishment of debt

 

—

 

—

 

(2,866

)

(3,238

)

Equity in earnings of equity investments

 

4,322

 

11,698

 

15,457

 

23,525

 

Gain on sale of shares of equity investments(1)

 

6,745

 

—

 

21,550

 

—

 

Gain on issuance of shares by equity investees(1)

 

3,396

 

—

 

8,436

 

—

 

Net income

 

41,993

 

35,164

 

162,829

 

114,446

 

Preferred distributions

 

(11,500

)

(11,500

)

(46,000

)

(46,000

)

Net income available for common shareholders

 

$

30,493

 

$

23,664

 

$

116,829

 

$

68,446

 

 

 

 

 

 

 

 

 

 

 

Calculation of Funds from Operations, or FFO:(2)

 

 

 

 

 

 

 

 

 

Net income

 

$

41,993

 

$

35,164

 

$

162,829

 

$

114,446

 

Plus: depreciation and amortization

 

33,097

 

24,330

 

112,380

 

93,273

 

Loss on early extinguishment of debt:

 

 

 

 

 

 

 

 

 

Add: amount included in total expenses

 

—

 

—

 

2,866

 

3,238

 

Less: portion settled in cash

 

—

 

—

 

—

 

—

 

Less: gain on sale of shares of equity investments

 

(6,745

)

—

 

(21,550

)

—

 

Less: gain on issuance of shares by equity investees

 

(3,396

)

—

 

(8,436

)

—

 

Less: equity in earnings of equity investments

 

(4,322

)

(11,698

)

(15,457

)

(23,525

)

Plus: FFO from equity investments

 

6,866

 

8,370

 

28,573

 

32,826

 

FFO

 

67,493

 

56,166

 

261,205

 

220,258

 

Less: preferred distributions

 

(11,500

)

(11,500

)

(46,000

)

(46,000

)

FFO available for common shareholders

 

$

55,993

 

$

44,666

 

$

215,205

 

$

174,258

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

177,317

 

142,774

 

176,157

 

136,270

 

 

 

 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

0.17

 

$

0.17

 

$

0.66

 

$

0.50

 

FFO available for common shareholders

 

0.32

 

0.31

 

1.22

 

1.28

 

Common distributions paid

 

0.21

 

0.20

 

0.82

 

0.80

 

 

4


 

(1)          We account for our common share investments in Senior Housing Properties Trust, or Senior Housing, and Hospitality Properties Trust, or Hospitality Properties, using the equity method of accounting.  During the year ended December 31, 2004, we sold 4,148 of our Senior Housing common shares and recognized a gain of $21,550.  In addition, we recognized gains of $8,436 during the year ended December 31, 2004, as a result of share issuances by Senior Housing and Hospitality Properties at prices above our per share carrying value.

 

(2)          We compute FFO as shown in the calculation above.  Our calculation of FFO differs from the NAREIT definition because we exclude loss on early extinguishment of debt not settled in cash.  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 costs, such as depreciation expense and gains or losses on sales of properties, FFO can facilitate a comparison of current operating performance 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 revolving bank credit facility and public debt covenants, the availability of debt and equity capital to us and our expectation of future performance.

 

5


 

HRPT Properties Trust

Consolidated Balance Sheets

(dollars in thousands, except share data)

 

 

 

December 31

 

 

 

2004

 

2003

 

 

 

 

 

(audited)

 

ASSETS

 

 

 

 

 

Real estate properties, at cost:

 

 

 

 

 

Land

 

$

928,106

 

$

852,983

 

Buildings and improvements

 

3,756,963

 

3,038,983

 

 

 

4,685,069

 

3,891,966

 

Accumulated depreciation

 

(454,411

)

(363,015

)

 

 

4,230,658

 

3,528,951

 

Acquired real estate leases

 

149,063

 

68,983

 

Equity investments in former subsidiaries

 

207,804

 

260,208

 

Cash and cash equivalents

 

21,961

 

11,526

 

Restricted cash

 

22,257

 

10,674

 

Rents receivable, net of allowance for doubtful accounts of $4,594 and $4,568, respectively

 

113,504

 

83,973

 

Other assets, net

 

68,083

 

48,929

 

Total assets

 

$

4,813,330

 

$

4,013,244

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Revolving credit facility

 

$

175,000

 

$

412,000

 

Senior unsecured debt

 

1,739,624

 

1,136,311

 

Mortgage notes payable, net

 

440,407

 

328,510

 

Accounts payable and accrued expenses

 

67,716

 

60,541

 

Acquired real estate lease obligations

 

39,843

 

33,206

 

Rent collected in advance

 

15,208

 

13,135

 

Security deposits

 

11,920

 

9,520

 

Due to affiliates

 

16,418

 

8,370

 

Total liabilities

 

2,506,136

 

2,001,593

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

Preferred shares of beneficial interest, $0.01 par value:

 

 

 

 

 

50,000,000 shares authorized;

 

 

 

 

 

Series A preferred shares; 9 7/8% cumulative redeemable at par on February 22, 2006; 8,000,000 shares issued and outstanding, aggregate liquidation preference $200,000

 

193,086

 

193,086

 

Series B preferred shares; 8 3/4% cumulative redeemable at par on September 12, 2007; 12,000,000 shares issued and outstanding, aggregate liquidation preference $300,000

 

289,849

 

289,849

 

Common shares of beneficial interest, $0.01 par value:

 

 

 

 

 

200,000,000 shares authorized; 177,316,525 and 142,773,925 shares issued and outstanding, respectively

 

1,773

 

1,428

 

Additional paid in capital

 

2,394,946

 

2,071,203

 

Cumulative net income

 

1,287,790

 

1,124,961

 

Cumulative common distributions

 

(1,729,587

)

(1,584,213

)

Cumulative preferred distributions

 

(130,663

)

(84,663

)

Total shareholders’ equity

 

2,307,194

 

2,011,651

 

Total liabilities and shareholders’ equity

 

$

4,813,330

 

$

4,013,244

 

 

6

 EX-99.2 3 a05-3520_2ex99d2.htm EX-99.2

Exhibit 99.2

 

 

 

HRPT PROPERTIES TRUST

 

Fourth Quarter 2004

 

Supplemental Operating and Financial Data

 

 

All amounts in this report are unaudited, except for the December 31, 2003 Consolidated Balance Sheet.

 


 

TABLE OF CONTENTS

 

CORPORATE INFORMATION

 

 

 

 

 

Company Profile

 

 

Investor Information

 

 

Research Coverage

 

 

 

 

FINANCIAL INFORMATION

 

 

 

 

 

Key Financial Data

 

 

Consolidated Balance Sheets

 

 

Consolidated Statements of Income

 

 

Consolidated Statements of Cash Flows

 

 

Calculation of EBITDA

 

 

Calculation of Funds from Operations (FFO)

 

 

Summary Results of Operations by Property Type

 

 

Summary Results of Operations by Major Market

 

 

Same Property Results and Analysis by Property Type

 

 

Same Property Results and Analysis by Major Market

 

 

Summary of Equity Investments in Former Subsidiaries

 

 

Debt Summary

 

 

Debt Maturity Schedule

 

 

Leverage and Coverage Ratios

 

 

Tenant Improvements, Leasing Costs and Capital Improvements

 

 

Acquisitions Information

 

 

Financing Activities

 

 

 

 

PORTFOLIO AND LEASING INFORMATION

 

 

 

 

 

Portfolio Summary

 

 

Summary of Properties by Major Market

 

 

Leasing Summary

 

 

Occupancy and Leasing Analysis by Property Type and Major Market

 

 

Tenants Representing 1% or More of Total Annualized Rent

 

 

Three Year Lease Expiration Schedule by Property Type

 

 

Three Year Lease Expiration Schedule by Major Market

 

 

Ten Year Portfolio Lease Expiration Schedule

 

 

2


 

WARNING REGARDING FORWARD LOOKING STATEMENTS

 

CERTAIN STATEMENTS CONTAINED IN THIS SUPPLEMENTAL OPERATING AND FINANCIAL DATA REPORT FOR THE QUARTER ENDED DECEMBER 31, 2004 ARE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND FEDERAL SECURITIES LAWS.  THESE FORWARD LOOKING STATEMENTS ARE BASED UPON OUR PRESENT BELIEFS AND EXPECTATIONS, BUT THEY MAY NOT OCCUR.  THESE STATEMENTS APPEAR IN A NUMBER OF PLACES IN THIS REPORT AND INCLUDE STATEMENTS THAT USE WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE” OR SIMILAR EXPRESSIONS.

 

ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY OUR FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS.  SUCH FACTORS INCLUDE, WITHOUT LIMITATION, CHANGES IN THE ECONOMY AND THE CAPITAL MARKETS, COMPETITION WITHIN THE REAL ESTATE INDUSTRY OR THOSE INDUSTRIES IN WHICH OUR TENANTS OPERATE, AND CHANGES IN FEDERAL, STATE AND LOCAL LEGISLATION.  FOR EXAMPLE, SOME OF OUR TENANTS MAY NOT RENEW EXPIRING LEASES, AND WE MAY BE UNABLE TO LOCATE NEW TENANTS TO MAINTAIN THE HISTORICAL OCCUPANCY RATES OF OUR PROPERTIES; RENTS THAT WE CAN CHARGE AT OUR PROPERTIES MAY DECLINE; OUR TENANTS MAY EXPERIENCE LOSSES AND BECOME UNABLE TO PAY OUR RENTS; AND WE MAY BE UNABLE TO IDENTIFY PROPERTIES WHICH WE WANT TO BUY OR TO NEGOTIATE ACCEPTABLE PURCHASE PRICES.  THESE RESULTS COULD OCCUR DUE TO MANY DIFFERENT CIRCUMSTANCES, SOME OF WHICH, SUCH AS CHANGES IN OUR TENANTS’ FINANCIAL CONDITIONS OR NEEDS FOR LEASED SPACE, OR CHANGES IN THE CAPITAL MARKETS OR THE ECONOMY GENERALLY, ARE BEYOND OUR CONTROL.

 

FORWARD LOOKING STATEMENTS WITHIN THIS SUPPLEMENTAL PACKAGE ARE ONLY EXPRESSIONS OF OUR PRESENT EXPECTATIONS AND INTENTIONS AS OF THE DATE OF THIS SUPPLEMENTAL PACKAGE.  FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR.  YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.  EXCEPT AS MAY BE REQUIRED BY LAW, WE DO NOT INTEND TO IMPLY THAT WE WILL UPDATE OR REVISE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

 

 

3



 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

COMPANY PROFILE

 

The Company:

 

HRPT Properties Trust, or HRP, is a real estate investment trust, or REIT, which primarily owns office buildings located throughout the United States.  The majority of our properties are commercial office buildings located in central business district, or CBD, and suburban areas of major metropolitan markets.  At December 31, 2004, we also owned approximately 10 million square feet of leased commercial and industrial lands located in Oahu, Hawaii.  We have a large concentration of properties leased to the U.S. Government and medical related tenants.  Since our IPO in 1986 through December 31, 2004, we have provided shareholders with average total annual returns of 12.8%.  We have been investment grade rated since 1994 and we are included in a number of financial indices, including the Russell 1000® and the Morgan Stanley REIT Index.

Strategy:

 

Our primary business strategy is to efficiently operate our properties to maintain high occupancies, at market rates, with high credit quality tenants.  It is our goal to maintain an investment portfolio that is balanced between “security” and “growth”.  The security part of our portfolio includes properties that are long term leased or leased to tenants we believe are likely to renew their occupancy, such as government agencies, tenants in medical releated industries and our leased lands in Hawaii.  The growth part of our portfolio includes our multi tenant commercial office buildings, which we believe will generate higher rents and appreciate in value in the future because of their physical qualities and locations.  We also consider our minority holdings in shares of our former subsidiaries to be part of our growth portfolio.  Although we sometimes sell properties, we 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 joint venture or off balance sheet entities.  We generally do not undertake speculative development, but we will sometimes do a build-to-suit project for an existing tenant.

Management:

 

HRP is managed by Reit Management & Research LLC, or RMR.  RMR is a diversified nationwide real estate company which was founded in 1986 to manage public investments in real estate.  As of December 31, 2004, RMR oversaw one of the largest portfolios of public real estate in the United States, including more than 800 properties, with approximately 80 million square feet, located in 42 states and Washington, DC.  RMR has almost 400 employees in its headquarters and regional offices located throughout the country.  In addition to managing HRP, RMR and its affiliates also manage Hospitality Properties Trust, a publicly traded REIT that owns hotels, Senior Housing Properties Trust, a publicly traded REIT that owns senior living properties and three closed end mutual funds which invest in unaffiliated real estate companies.  The public companies managed by RMR had combined total market capitalization of approximately $11 billion as of December 31, 2004. We believe that being managed by RMR is a competitive advantage for HRP because RMR provides HRP with a depth of management and experience which may be unequaled in the real estate industry.  We also believe RMR is able to provide management services to HRP at costs that are lower than HRP would have to pay for similar quality services.

Corporate Headquarters:

 

400 Centre Street

Newton, MA 02458

(t) (617) 332-3990

(f) (617) 332-2261

 

Stock Exchange Listing:

 

New York Stock Exchange

 

Trading Symbols:

 

Common Stock — HRP

Preferred Stock Series A — HRP-A

Preferred Stock Series B — HRP-B

 

Senior Unsecured Debt Ratings:

 

Moody’s — Baa2

Standard & Poor’s — BBB

 

Portfolio Data as of 12/31/04:

 

Total properties

 

375

 

Total sq. ft. (000s)

 

44,154

 

Percent leased

 

93.0

%

 

Portfolio Concentration as of 12/31/04 (Sq. Ft.):

 

 

 

Office

 

Industrial

 

Total

 

CBD

 

24.3

%

0.3

%

24.6

%

Suburban

 

39.9

%

35.5

%

75.4

%

Total

 

64.2

%

35.8

%

100.0

%

 

Portfolio Concentration (Q4 2004 NOI):

 

 

 

Office

 

Industrial

 

Total

 

CBD

 

37.8

%

0.2

%

38.0

%

Suburban

 

46.2

%

15.8

%

62.0

%

Total

 

84.0

%

16.0

%

100.0

%

 

Portfolio Concentration by Major Market:

 

 

 

12/31/04
Sq. Ft.

 

Q4 2004
NOI

 

Metro Philadelphia, PA

 

12.3

%

14.8

%

Metro Washington, DC

 

6.0

%

11.7

%

Metro Boston, MA

 

6.7

%

10.3

%

Oahu, HI

 

22.0

%

8.5

%

Southern California

 

3.3

%

7.9

%

Metro Atlanta, GA

 

4.2

%

5.1

%

Metro Austin, TX

 

6.4

%

4.5

%

Other Markets

 

39.1

%

37.2

%

Total

 

100.0

%

100.0

%

 

5


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

INVESTOR INFORMATION

 

Board of Trustees

 

Barry M. Portnoy

Gerard M. Martin

Managing Trustee

Managing Trustee

 

 

 

 

Patrick F. Donelan

Frederick N. Zeytoonjian

Independent Trustee

Independent Trustee

Chairman of Audit Committee

Chairman of Compensation Committee

 

 

Tjarda Clagett

 

Independent Trustee

 

Chairman of Nominating and Governance Committee

 

 

Senior Management

 

John A. Mannix

Adam D. Portnoy

President and Chief Operating Officer

Executive Vice President

 

 

John C. Popeo

Jennifer B. Clark

Chief Financial Officer, Treasurer and Secretary

Senior Vice President

 

 

David M. Lepore

William J. Sheehan

Senior Vice President

Director of Internal Audit and Compliance

 

Contact Information

 

Investor Relations

Inquiries

HRPT Properties Trust

Financial inquiries should be directed to John C. Popeo,

400 Centre Street

Treasurer and Chief Financial Officer, at (617) 332-3990

Newton, MA  02458

or jpopeo@reitmr.com.

(t) (617) 332-3990

 

(f) (617) 332-2261

Investor and media inquiries should be directed to

(email) info@hrpreit.com

Timothy A. Bonang, Manager of Investor Relations, at

(website) www.hrpreit.com

(617) 796-8149 or tbonang@reitmr.com.

 

6


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

RESEARCH COVERAGE

 

Equity Research Coverage

 

A.G. Edwards & Sons

Smith Barney Citigroup

David Aubuchon

John Stewart

(314) 955-5452

(212) 816-1685

 

 

Legg Mason

Stifel, Nicolaus

David Fick

Phillip Martin

(410) 539-0000

(312) 832-2756

 

 

Merrill Lynch

UBS

Steve Sakwa

Keith A. Mills

(212) 449-0335

(212) 713-3098

 

 

Raymond James

Wachovia Securities

Paul Puryear

Stephen Swett

(727) 573-3800

(212) 909-0954

 

 

RBC Capital Markets

 

Jay Leupp

 

(415) 633-8588

 

 

Debt Research Coverage

 

Bear Stearns & Company

Merrill Lynch

Susan Berliner

John Forrey

(212) 272-3824

(212) 449-1812

 

 

Credit Suisse First Boston

Wachovia Securities

Thiery Perrein

Dan Sullivan

(212) 538-8618

(703) 383-6441

 

Rating Agencies

 

Moody’s Investor Service

Standard and Poor’s

Karen Nickerson

Jeanne Sarda

(212) 553-4924

(212) 438-2598

 

 

 

HRP is followed by analysts and its publicly held debt is rated by the rating agencies listed above.  Please note that any opinions, estimates or forecasts regarding HRP’s performance made by these analysts or agencies do not represent opinions, forecasts or predictions of HRP or its management.  HRP does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations provided by any of these analysts or agencies.

 

7



 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

KEY FINANCIAL DATA

(share amounts and dollars in thousands, except per share data)

 

 

 

As of and For the Three Months Ended

 

 

 

12/31/2004

 

9/30/2004

 

6/30/2004

 

3/31/2004

 

12/31/2003

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (at end of period)

 

177,317

 

177,317

 

177,278

 

177,274

 

142,774

 

Preferred shares outstanding (at end of period)

 

20,000

 

20,000

 

20,000

 

20,000

 

20,000

 

Weighted average common shares and units outstanding - basic

 

177,317

 

177,285

 

177,276

 

172,724

 

142,774

 

Weighted average common shares and units outstanding - diluted(1)

 

177,317

 

177,285

 

177,276

 

172,724

 

142,774

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

Price at end of period

 

$

12.83

 

$

10.99

 

$

10.01

 

$

11.30

 

$

10.09

 

High during period

 

$

12.99

 

$

11.07

 

$

11.39

 

$

11.37

 

$

10.35

 

Low during period

 

$

10.96

 

$

9.86

 

$

8.25

 

$

9.76

 

$

9.10

 

Annualized dividends paid per share

 

$

0.84

 

$

0.84

 

$

0.80

 

$

0.80

 

$

0.80

 

Annualized dividend yield (at end of period)

 

6.5

%

7.6

%

8.0

%

7.1

%

7.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Market Capitalization:

 

 

 

 

 

 

 

 

 

 

 

Total debt (book value)

 

$

2,355,031

 

$

2,272,430

 

$

1,596,654

 

$

1,571,076

 

$

1,876,821

 

Plus: market value of preferred shares (at end of period)

 

548,440

 

545,480

 

530,400

 

561,560

 

557,720

 

Plus: market value of common shares (at end of period)

 

2,274,977

 

1,948,714

 

1,774,553

 

2,003,196

 

1,440,590

 

Total market capitalization

 

$

5,178,448

 

$

4,766,624

 

$

3,901,607

 

$

4,135,832

 

$

3,875,131

 

Total debt / total market capitalization

 

45.5

%

47.7

%

40.9

%

38.0

%

48.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Book Capitalization:

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

$

2,355,031

 

$

2,272,430

 

$

1,596,654

 

$

1,571,076

 

$

1,876,821

 

Plus: total stockholders’ equity

 

2,307,194

 

2,313,937

 

2,325,856

 

2,337,711

 

2,011,651

 

Total book capitalization

 

$

4,662,225

 

$

4,586,367

 

$

3,922,510

 

$

3,908,787

 

$

3,888,472

 

Total debt / total book capitalization

 

50.5

%

49.5

%

40.7

%

40.2

%

48.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

4,813,330

 

$

4,752,257

 

$

4,045,756

 

$

4,027,411

 

$

4,013,244

 

Total liabilities

 

$

2,506,136

 

$

2,438,320

 

$

1,719,900

 

$

1,689,700

 

$

2,001,593

 

Gross book value of real estate assets(2)

 

$

4,814,514

 

$

4,709,543

 

$

4,010,039

 

$

3,957,527

 

$

3,934,697

 

Equity investments in former subsidiaries (book value)

 

$

207,804

 

$

218,174

 

$

220,445

 

$

222,589

 

$

260,208

 

Total debt / gross book value of real estate plus equity investments in former subsidiaries(2)

 

46.9

%

46.1

%

37.7

%

37.6

%

44.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Selected Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

167,551

 

$

160,419

 

$

138,801

 

$

136,458

 

$

130,679

 

EBITDA(3)

 

$

105,105

 

$

102,375

 

$

90,797

 

$

89,404

 

$

86,002

 

Property net operating income (NOI)(4)

 

$

102,502

 

$

100,168

 

$

87,264

 

$

85,442

 

$

79,611

 

NOI margin(5)

 

61.2

%

62.4

%

62.9

%

62.6

%

60.9

%

Net income

 

$

41,993

 

$

36,401

 

$

35,060

 

$

49,375

 

$

35,164

 

Preferred distributions

 

$

(11,500

)

$

(11,500

)

$

(11,500

)

$

(11,500

)

$

(11,500

)

Net income available for common shareholders

 

$

30,493

 

$

24,901

 

$

23,560

 

$

37,875

 

$

23,664

 

Funds from operations (FFO)(6)

 

$

67,493

 

$

69,071

 

$

63,578

 

$

61,063

 

$

56,166

 

FFO available for common shareholders(6)

 

$

55,993

 

$

57,571

 

$

52,078

 

$

49,563

 

$

44,666

 

Common distributions paid

 

$

37,236

 

$

37,229

 

$

35,455

 

$

35,454

 

$

28,555

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

0.17

 

$

0.14

 

$

0.13

 

$

0.22

 

$

0.17

 

FFO available for common shareholders

 

$

0.32

 

$

0.32

 

$

0.29

 

$

0.29

 

$

0.31

 

Common distributions paid

 

$

0.21

 

$

0.21

 

$

0.20

 

$

0.20

 

$

0.20

 

FFO payout ratio

 

66.5

%

64.7

%

68.1

%

71.5

%

63.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

EBITDA(3) / interest expense

 

3.0

x

3.3

x

3.6

x

3.4

x

3.2

x

EBITDA(3) / interest expense and preferred distributions

 

2.2

x

2.4

x

2.5

x

2.4

x

2.2

x

 

(1)          HRP has no outstanding common share equivalents, such as units, convertible debt or stock options.

(2)          Gross book value of real estate assets is real estate properties, at cost, including purchase price allocations relating to FAS 141.

(3)          See page 13 for calculation of EBITDA.

(4)          Property net operating income, or NOI, is defined as rental income from real estate less property operating expenses; it excludes income from other investments.

(5)          NOI margin is defined as property net operating income, or NOI, as a percentage of total revenues.

(6)          See page 14 for calculation of FFO and FFO available for common shareholders.

 

9


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

 

 

 

As of
December 31,
2004

 

As of
December 31,
2003

 

 

 

 

 

(audited)

 

ASSETS

 

 

 

 

 

Real estate properties, at cost:

 

 

 

 

 

Land

 

$

928,106

 

$

852,983

 

Buildings and improvements

 

3,756,963

 

3,038,983

 

 

 

4,685,069

 

3,891,966

 

Accumulated depreciation

 

(454,411

)

(363,015

)

 

 

4,230,658

 

3,528,951

 

Acquired real estate leases

 

149,063

 

68,983

 

Equity investments in former subsidiaries

 

207,804

 

260,208

 

Cash and cash equivalents

 

21,961

 

11,526

 

Restricted cash

 

22,257

 

10,674

 

Rents receivable, net of allowance for doubtful accounts of $4,594 and $4,568, respectively

 

113,504

 

83,973

 

Other assets, net

 

68,083

 

48,929

 

Total assets

 

$

4,813,330

 

$

4,013,244

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Revolving credit facility

 

$

175,000

 

$

412,000

 

Senior unsecured debt, net

 

1,739,624

 

1,136,311

 

Mortgage notes payable, net

 

440,407

 

328,510

 

Accounts payable and accrued expenses

 

67,716

 

60,541

 

Acquired real estate lease obligations

 

39,843

 

33,206

 

Rent collected in advance

 

15,208

 

13,135

 

Security deposits

 

11,920

 

9,520

 

Due to affiliates

 

16,418

 

8,370

 

Total liabilities

 

2,506,136

 

2,001,593

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

Preferred shares of beneficial interest, $0.01 par value:

 

 

 

 

 

50,000,000 shares authorized;

 

 

 

 

 

Series A preferred shares; 9 7/8% cumulative redeemable at par on February 22, 2006; 8,000,000 shares issued and outstanding, aggregate liquidation preference $200,000

 

193,086

 

193,086

 

Series B preferred shares; 8 3/4% cumulative redeemable at par on September 12, 2007; 12,000,000 shares issued and outstanding, aggregate liquidation preference $300,000

 

289,849

 

289,849

 

Common shares of beneficial interest, $0.01 par value:

 

 

 

 

 

200,000,000 shares authorized; 177,316,525 and 142,773,925 shares issued and outstanding, respectively

 

1,773

 

1,428

 

Additional paid in capital

 

2,394,946

 

2,071,203

 

Cumulative net income

 

1,287,790

 

1,124,961

 

Cumulative common distributions

 

(1,729,587

)

(1,584,213

)

Cumulative preferred distributions

 

(130,663

)

(84,663

)

Total shareholders’ equity

 

2,307,194

 

2,011,651

 

Total liabilities and shareholders’ equity

 

$

4,813,330

 

$

4,013,244

 

 

10


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

CONSOLIDATED STATEMENTS OF INCOME

(amounts in thousands, except per share data)

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

 

12/31/2004

 

12/31/2003

 

12/31/2004

 

12/31/2003

 

Revenues:

 

 

 

 

 

 

 

 

 

Rental income(1)

 

$

167,551

 

$

130,679

 

$

603,229

 

$

500,316

 

Total revenues

 

167,551

 

130,679

 

603,229

 

500,316

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Operating expenses

 

65,049

 

51,068

 

227,853

 

192,813

 

Depreciation and amortization

 

33,097

 

24,330

 

112,380

 

93,273

 

General and administrative

 

6,696

 

5,015

 

25,170

 

19,338

 

Total expenses

 

104,842

 

80,413

 

365,403

 

305,424

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

62,709

 

50,266

 

237,826

 

194,892

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

184

 

157

 

638

 

411

 

Interest expense (including amortization of note discounts and premiums and deferred financing fees of $755, $1,509, $4,341 and $5,975, respectively)

 

(35,363

)

(26,957

)

(118,212

)

(101,144

)

Loss on early extinguishment of debt

 

—

 

—

 

(2,866

)

(3,238

)

Equity in earnings of equity investments

 

4,322

 

11,698

 

15,457

 

23,525

 

Gain on sale of shares of equity investments(2)

 

6,745

 

—

 

21,550

 

—

 

Gain on issuance of shares by equity investees(2)

 

3,396

 

—

 

8,436

 

—

 

Net income

 

41,993

 

35,164

 

162,829

 

114,446

 

Preferred distributions

 

(11,500

)

(11,500

)

(46,000

)

(46,000

)

Net income available for common shareholders

 

$

30,493

 

$

23,664

 

$

116,829

 

$

68,446

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

177,317

 

142,774

 

176,157

 

136,270

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per common share:

 

 

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

0.17

 

$

0.17

 

$

0.66

 

$

0.50

 

 

 

 

 

 

 

 

 

 

 

Additional Data:

 

 

 

 

 

 

 

 

 

General and administrative expenses / total revenues

 

4.0

%

3.8

%

4.2

%

3.9

%

General and administrative expenses / total assets (at end of period)

 

0.1

%

0.1

%

0.5

%

0.5

%

 

 

 

 

 

 

 

 

 

 

Non cash straight line rent adjustments (FAS 13)(1)

 

$

7,297

 

$

4,667

 

$

22,273

 

$

16,559

 

Lease value amortization (FAS 141)(1)

 

$

(1,884

)

$

60

 

$

(3,007

)

$

1,095

 

Lease termination fees included in rental income

 

$

1,506

 

$

680

 

$

3,745

 

$

3,269

 

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.

(2)          We account for our common share investments in Senior Housing Properties Trust, or Senior Housing, and Hospitality Properties Trust, or Hospitality Properties, using the equity method of accounting.  During the year ended December 31, 2004, we sold 4,148,500 of our Senior Housing common shares and recognized a gain of $21,550.  In addition, we recognized gains of $8,436 during the year ended December 31, 2004, as a result of share issuances by Senior Housing and Hospitality Properties at prices above our per share carrying value.

 

11


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

 

12/31/2004

 

12/31/2003

 

12/31/2004

 

12/31/2003

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

41,993

 

$

35,164

 

$

162,829

 

$

114,446

 

Adjustments to reconcile net income to cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation

 

27,790

 

20,766

 

95,977

 

79,661

 

Amortization of note discounts and premiums and deferred financing fees

 

755

 

1,509

 

4,341

 

5,975

 

Amortization of acquired real estate leases

 

5,354

 

1,853

 

13,271

 

6,954

 

Other amortization

 

1,836

 

1,651

 

6,139

 

5,563

 

Loss on early extinguishment of debt

 

—

 

—

 

2,866

 

3,238

 

Equity in earnings of equity investments

 

(4,322

)

(11,698

)

(15,457

)

(23,525

)

Gain on sale of shares of equity investments

 

(6,745

)

—

 

(21,550

)

—

 

Gain on issuance of shares by equity investees

 

(3,396

)

—

 

(8,436

)

—

 

Distributions of earnings from equity investments

 

4,322

 

5,805

 

15,457

 

21,383

 

Change in assets and liabilities:

 

 

 

 

 

 

 

 

 

Decrease (increase) in restricted cash

 

3,871

 

(823

)

(11,583

)

1,858

 

Increase in rents receivable and other assets

 

(7,767

)

(3,665

)

(54,346

)

(32,346

)

Increase in accounts payable and accrued expenses

 

204

 

4,280

 

7,175

 

11,139

 

(Decrease) increase in rent collected in advance

 

(1,417

)

836

 

2,073

 

2,200

 

Increase in security deposits

 

410

 

221

 

2,400

 

1,076

 

(Decrease) increase in due to affiliates

 

(14,402

)

(6,297

)

8,048

 

2,834

 

Cash provided by operating activities

 

48,486

 

49,602

 

209,204

 

200,456

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Real estate acquisitions and improvements

 

(102,003

)

(515,006

)

(765,091

)

(832,826

)

Distributions in excess of earnings from equity investments

 

1,649

 

1,046

 

9,115

 

6,021

 

Proceeds from sale of common shares of equity investment

 

18,862

 

—

 

73,275

 

—

 

Proceeds from sale of real estate

 

—

 

—

 

—

 

385

 

Cash used for investing activities

 

(81,492

)

(513,960

)

(682,701

)

(826,420

)

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Proceeds from issuance of common shares, net

 

—

 

—

 

323,639

 

124,618

 

Proceeds from borrowings

 

113,000

 

669,450

 

1,660,436

 

1,223,454

 

Payments on borrowings

 

(35,660

)

(173,151

)

(1,302,580

)

(564,989

)

Deferred financing fees

 

(206

)

(1,404

)

(6,189

)

(3,319

)

Distributions to common shareholders

 

(37,236

)

(28,555

)

(145,374

)

(108,658

)

Distributions to preferred shareholders

 

(11,500

)

(11,500

)

(46,000

)

(46,000

)

Cash provided by financing activities

 

28,398

 

454,840

 

483,932

 

625,106

 

 

 

 

 

 

 

 

 

 

 

(Decrease) increase in cash and cash equivalents

 

(4,608

)

(9,518

)

10,435

 

(858

)

Cash and cash equivalents at beginning of period

 

26,569

 

21,044

 

11,526

 

12,384

 

Cash and cash equivalents at end of period

 

$

21,961

 

$

11,526

 

$

21,961

 

$

11,526

 

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Interest paid

 

$

19,868

 

$

17,706

 

$

101,255

 

$

82,771

 

 

 

 

 

 

 

 

 

 

 

Non cash investing activities:

 

 

 

 

 

 

 

 

 

Real estate acquisitions

 

$

(5,581

)

$

—

 

$

(119,958

)

$

—

 

 

 

 

 

 

 

 

 

 

 

Non cash financing activities:

 

 

 

 

 

 

 

 

 

Issuance of common shares

 

$

—

 

$

5

 

$

449

 

$

972

 

Assumption of mortgage notes payable

 

5,581

 

—

 

119,958

 

—

 

 

12


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

CALCULATION OF EBITDA

(dollars in thousands)

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

 

12/31/2004

 

12/31/2003

 

12/31/2004

 

12/31/2003

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

41,993

 

$

35,164

 

$

162,829

 

$

114,446

 

Plus: interest expense

 

35,363

 

26,957

 

118,212

 

101,144

 

Plus: income taxes

 

—

 

—

 

—

 

—

 

Plus: depreciation and amortization

 

33,097

 

24,330

 

112,380

 

93,273

 

Plus: loss on early exinguishment of debt

 

—

 

—

 

2,866

 

3,238

 

Less: gain on sale of shares of equity investments

 

(6,745

)

—

 

(21,550

)

—

 

Less: gain on issuance of shares by equity investees

 

(3,396

)

—

 

(8,436

)

—

 

Less: equity in earnings of equity investments

 

(4,322

)

(11,698

)

(15,457

)

(23,525

)

Plus: EBITDA from equity investments

 

9,115

 

11,249

 

36,837

 

42,871

 

EBITDA

 

$

105,105

 

$

86,002

 

$

387,681

 

$

331,447

 

 

We compute EBITDA, or earnings before interest, taxes, depreciation and amortization, as net income less gains on equity transactions of equity investments, plus loss on early extinguishment of debt, interest expense, depreciation and amortization and the difference between EBITDA and earnings from equity investments.  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, depreciation and amortization expense, EBITDA can facilitate a comparison of current operating performance 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.

 

13


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

CALCULATION OF FUNDS FROM OPERATIONS (FFO)

(dollars in thousands)

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

 

12/31/2004

 

12/31/2003

 

12/31/2004

 

12/31/2003

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

41,993

 

$

35,164

 

$

162,829

 

$

114,446

 

Plus: depreciation and amortization

 

33,097

 

24,330

 

112,380

 

93,273

 

Loss on early extinguishment of debt:

 

 

 

 

 

 

 

 

 

Add: amount included in total expenses

 

—

 

—

 

2,866

 

3,238

 

Less: portion settled in cash

 

—

 

—

 

—

 

—

 

Less: gain on sale of shares of equity investments

 

(6,745

)

—

 

(21,550

)

—

 

Less: gain on issuance of shares by equity investees

 

(3,396

)

—

 

(8,436

)

—

 

Less: equity in earnings of equity investments

 

(4,322

)

(11,698

)

(15,457

)

(23,525

)

Plus: FFO from equity investments

 

6,866

 

8,370

 

28,573

 

32,826

 

FFO

 

67,493

 

56,166

 

261,205

 

220,258

 

Less: preferred distributions

 

(11,500

)

(11,500

)

(46,000

)

(46,000

)

FFO available for common shareholders

 

$

55,993

 

$

44,666

 

$

215,205

 

$

174,258

 

 

We compute FFO and FFO available for common shareholders as shown above.  Our calculation of FFO differs from the NAREIT definition because we exclude loss on early extinguishment of debt not settled in cash.  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 costs, such as depreciation expense and gains or losses on sales of properties, FFO can facilitate a comparison of current operating performance 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 revolving bank credit facility and public debt covenants, the availability of debt and equity capital to us and our expectation of future performance.

 

14


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

SUMMARY RESULTS OF OPERATIONS BY PROPERTY TYPE

(dollars and sq. ft. in thousands)

 

 

 

As of and For the Three Months Ended

 

As of and For the Year Ended

 

 

 

12/31/2004

 

12/31/2003

 

12/31/2004

 

12/31/2003

 

 

 

 

 

 

 

 

 

 

 

Number of Properties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

278

 

212

 

278

 

212

 

Industrial

 

97

 

26

 

97

 

26

 

Total

 

375

 

238

 

375

 

238

 

 

 

 

 

 

 

 

 

 

 

CBD

 

50

 

48

 

50

 

48

 

Suburban

 

325

 

190

 

325

 

190

 

Total

 

375

 

238

 

375

 

238

 

 

 

 

 

 

 

 

 

 

 

Square Feet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

28,329

 

23,171

 

28,329

 

23,171

 

Industrial

 

15,825

 

12,724

 

15,825

 

12,724

 

Total

 

44,154

 

35,895

 

44,154

 

35,895

 

 

 

 

 

 

 

 

 

 

 

CBD

 

10,889

 

10,416

 

10,889

 

10,416

 

Suburban

 

33,265

 

25,479

 

33,265

 

25,479

 

Total

 

44,154

 

35,895

 

44,154

 

35,895

 

 

 

 

 

 

 

 

 

 

 

Percent Leased(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

91.0

%

91.0

%

91.0

%

91.0

%

Industrial

 

96.5

%

98.2

%

96.5

%

98.2

%

Total

 

93.0

%

93.5

%

93.0

%

93.5

%

 

 

 

 

 

 

 

 

 

 

CBD

 

92.9

%

93.8

%

92.9

%

93.8

%

Suburban

 

93.0

%

93.4

%

93.0

%

93.4

%

Total

 

93.0

%

93.5

%

93.0

%

93.5

%

 

 

 

 

 

 

 

 

 

 

Rental Income(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

$

143,460

 

$

120,030

 

$

518,828

 

$

470,161

 

Industrial

 

24,091

 

10,649

 

84,401

 

30,155

 

Total

 

$

167,551

 

$

130,679

 

$

603,229

 

$

500,316

 

 

 

 

 

 

 

 

 

 

 

CBD

 

$

68,497

 

$

64,982

 

$

268,879

 

$

262,819

 

Suburban

 

99,054

 

65,697

 

334,350

 

237,497

 

Total

 

$

167,551

 

$

130,679

 

$

603,229

 

$

500,316

 

 

 

 

 

 

 

 

 

 

 

Net Operating Income (NOI)(3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

$

86,140

 

$

73,490

 

$

314,938

 

$

290,348

 

Industrial

 

16,362

 

6,121

 

60,438

 

17,155

 

Total

 

$

102,502

 

$

79,611

 

$

375,376

 

$

307,503

 

 

 

 

 

 

 

 

 

 

 

CBD

 

$

38,983

 

$

38,067

 

$

156,602

 

$

156,513

 

Suburban

 

63,519

 

41,544

 

218,774

 

150,990

 

Total

 

$

102,502

 

$

79,611

 

$

375,376

 

$

307,503

 

 

 

 

 

 

 

 

 

 

 

NOI Margin(4):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

60.0

%

61.2

%

60.7

%

61.8

%

Industrial

 

67.9

%

57.5

%

71.6

%

56.9

%

Total

 

61.2

%

60.9

%

62.2

%

61.5

%

 

 

 

 

 

 

 

 

 

 

CBD

 

56.9

%

58.6

%

58.2

%

59.6

%

Suburban

 

64.1

%

63.2

%

65.4

%

63.6

%

Total

 

61.2

%

60.9

%

62.2

%

61.5

%

 

(1)          Percent leased includes space being fitted out for occupancy pursuant to signed leases and space which is leased but being offered for sublease by tenants.

(2)          Includes some triple net lease rental income.

(3)          Net operating income, or NOI, is defined as property rental income less property operating expenses.

(4)          NOI margin is defined as net operating income, or NOI, as a percentage of rental income.

 

15


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

SUMMARY RESULTS OF OPERATIONS BY MAJOR MARKET

(dollars and sq. ft. in thousands)

 

 

 

As of and For the Three Months Ended

 

As of and For the Year Ended

 

 

 

12/31/2004

 

12/31/2003

 

12/31/2004

 

12/31/2003

 

Number of Properties:

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

21

 

21

 

21

 

21

 

Metro Washington, DC

 

20

 

16

 

20

 

16

 

Metro Boston, MA

 

39

 

36

 

39

 

36

 

Oahu, HI

 

12

 

11

 

12

 

11

 

Southern California

 

24

 

18

 

24

 

18

 

Metro Atlanta, GA

 

36

 

—

 

36

 

—

 

Metro Austin, TX

 

26

 

26

 

26

 

26

 

Other markets

 

197

 

110

 

197

 

110

 

Total

 

375

 

238

 

375

 

238

 

 

 

 

 

 

 

 

 

 

 

Square Feet:

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

5,452

 

5,452

 

5,452

 

5,452

 

Metro Washington, DC

 

2,645

 

2,214

 

2,645

 

2,214

 

Metro Boston, MA

 

2,979

 

2,574

 

2,979

 

2,574

 

Oahu, HI

 

9,699

 

9,755

 

9,699

 

9,755

 

Southern California

 

1,444

 

1,265

 

1,444

 

1,265

 

Metro Atlanta, GA

 

1,845

 

—

 

1,845

 

—

 

Metro Austin, TX

 

2,809

 

2,809

 

2,809

 

2,809

 

Other markets

 

17,281

 

11,826

 

17,281

 

11,826

 

Total

 

44,154

 

35,895

 

44,154

 

35,895

 

 

 

 

 

 

 

 

 

 

 

Percent Leased(1):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

91.6

%

95.5

%

91.6

%

95.5

%

Metro Washington, DC

 

94.6

%

92.4

%

94.6

%

92.4

%

Metro Boston, MA

 

92.4

%

89.2

%

92.4

%

89.2

%

Oahu, HI

 

99.4

%

98.8

%

99.4

%

98.8

%

Southern California

 

97.0

%

94.9

%

97.0

%

94.9

%

Metro Atlanta, GA

 

92.6

%

—

 

92.6

%

—

 

Metro Austin, TX

 

80.2

%

77.4

%

80.2

%

77.4

%

Other markets

 

91.4

%

92.9

%

91.4

%

92.9

%

Total

 

93.0

%

93.5

%

93.0

%

93.5

%

 

 

 

 

 

 

 

 

 

 

Rental Income(2):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

$

30,794

 

$

34,034

 

$

131,469

 

$

139,647

 

Metro Washington, DC

 

18,626

 

15,118

 

66,234

 

61,399

 

Metro Boston, MA

 

15,166

 

12,230

 

54,630

 

43,018

 

Oahu, HI

 

10,748

 

2,944

 

42,205

 

2,944

 

Southern California

 

11,968

 

9,681

 

42,622

 

38,593

 

Metro Atlanta, GA

 

8,442

 

—

 

14,813

 

—

 

Metro Austin, TX

 

9,032

 

10,633

 

38,317

 

42,675

 

Other markets

 

62,775

 

46,039

 

212,939

 

172,040

 

Total

 

$

167,551

 

$

130,679

 

$

603,229

 

$

500,316

 

 

 

 

 

 

 

 

 

 

 

Net Operating Income (NOI)(3):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

$

15,148

 

$

19,045

 

$

71,676

 

$

80,374

 

Metro Washington, DC

 

11,987

 

9,823

 

42,752

 

40,484

 

Metro Boston, MA

 

10,588

 

7,902

 

39,635

 

29,689

 

Oahu, HI

 

8,712

 

2,495

 

34,582

 

2,495

 

Southern California

 

8,087

 

6,422

 

27,823

 

25,937

 

Metro Atlanta, GA

 

5,229

 

—

 

9,404

 

—

 

Metro Austin, TX

 

4,571

 

5,685

 

18,173

 

21,873

 

Other markets

 

38,180

 

28,239

 

131,331

 

106,651

 

Total

 

$

102,502

 

$

79,611

 

$

375,376

 

$

307,503

 

 

 

 

 

 

 

 

 

 

 

NOI Margin(4):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

49.2

%

56.0

%

54.5

%

57.6

%

Metro Washington, DC

 

64.4

%

65.0

%

64.5

%

65.9

%

Metro Boston, MA

 

69.8

%

64.6

%

72.6

%

69.0

%

Oahu, HI

 

81.1

%

84.7

%

81.9

%

84.7

%

Southern California

 

67.6

%

66.3

%

65.3

%

67.2

%

Metro Atlanta, GA

 

61.9

%

—

 

63.5

%

—

 

Metro Austin, TX

 

50.6

%

53.5

%

47.4

%

51.3

%

Other markets

 

60.8

%

61.3

%

61.7

%

62.0

%

Total

 

61.2

%

60.9

%

62.2

%

61.5

%

 

(1)          Percent leased includes space being fitted out for occupancy pursuant to signed leases and space which is leased but being offered for sublease by tenants.

(2)          Includes some triple net lease rental income.

(3)          Net operating income, or NOI, is defined as property rental income less property operating expenses.

(4)          NOI margin is defined as net operating income, or NOI, as a percentage of rental income.

 

Major markets are based on geographic market areas as defined by CoStar, except for the Metro Philadelphia, PA market which excludes properties located in Wilmington, DE.  Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar.  Oahu, HI includes all properties located on the island of Oahu.

 

16


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

SAME PROPERTY RESULTS AND ANALYSIS BY PROPERTY TYPE

(dollars and sq. ft. in thousands)

 

 

 

As of and For the Three Months Ended(1)

 

As of and For the Year Ended(2)

 

 

 

12/31/2004

 

12/31/2003

 

12/31/2004

 

12/31/2003

 

Office:

 

 

 

 

 

 

 

 

 

Properties

 

210

 

210

 

198

 

198

 

Total sq. ft.

 

23,043

 

23,043

 

21,160

 

21,160

 

Percent leased(3)

 

90.6

%

90.9

%

90.1

%

90.4

%

Rental income(4)

 

$

118,622

 

$

119,603

 

$

439,471

 

$

448,354

 

Net operating income (NOI)(5)

 

$

70,481

 

$

73,204

 

$

263,947

 

$

275,966

 

NOI margin(6)

 

59.4

%

61.2

%

60.1

%

61.6

%

 

 

 

 

 

 

 

 

 

 

Industrial:

 

 

 

 

 

 

 

 

 

Properties

 

14

 

14

 

13

 

13

 

Total sq. ft.

 

2,733

 

2,733

 

2,067

 

2,067

 

Percent leased(3)

 

93.6

%

95.8

%

91.6

%

94.4

%

Rental income(4)

 

$

7,206

 

$

7,654

 

$

23,498

 

$

22,961

 

Net operating income (NOI)(5)

 

$

4,106

 

$

3,584

 

$

13,173

 

$

11,232

 

NOI margin(6)

 

57.0

%

46.8

%

56.1

%

48.9

%

 

 

 

 

 

 

 

 

 

 

CBD:

 

 

 

 

 

 

 

 

 

Properties

 

47

 

47

 

46

 

46

 

Total sq. ft.

 

10,263

 

10,263

 

9,711

 

9,711

 

Percent leased(3)

 

92.5

%

93.7

%

92.5

%

93.6

%

Rental income(4)

 

$

65,427

 

$

64,911

 

$

250,263

 

$

251,683

 

Net operating income (NOI)(5)

 

$

37,035

 

$

38,009

 

$

145,894

 

$

150,206

 

NOI margin(6)

 

56.6

%

58.6

%

58.3

%

59.7

%

 

 

 

 

 

 

 

 

 

 

Suburban:

 

 

 

 

 

 

 

 

 

Properties

 

177

 

177

 

165

 

165

 

Total sq. ft.

 

15,513

 

15,513

 

13,516

 

13,516

 

Percent leased(3)

 

89.9

%

89.9

%

88.7

%

88.7

%

Rental income(4)

 

$

60,401

 

$

62,346

 

$

212,706

 

$

219,632

 

Net operating income (NOI)(5)

 

$

37,552

 

$

38,779

 

$

131,226

 

$

136,992

 

NOI margin(6)

 

62.2

%

62.2

%

61.7

%

62.4

%

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

Properties

 

224

 

224

 

211

 

211

 

Total sq. ft.

 

25,776

 

25,776

 

23,227

 

23,227

 

Percent leased(3)

 

90.9

%

91.4

%

90.3

%

90.7

%

Rental income(4)

 

$

125,828

 

$

127,257

 

$

462,969

 

$

471,315

 

Net operating income (NOI)(5)

 

$

74,587

 

$

76,788

 

$

277,120

 

$

287,198

 

NOI margin(6)

 

59.3

%

60.3

%

59.9

%

60.9

%

 

(1)          Based on properties owned continuously since 10/1/2003.

(2)          Based on properties owned continuously since 1/1/2003.

(3)          Percent leased includes space being fitted out for occupancy pursuant to signed leases and space which is leased but being offered for sublease by tenants.

(4)          Includes some triple net lease rental income.

(5)          Net operating income, or NOI, is defined as property rental income less property operating expenses.

(6)          NOI margin is defined as net operating income, or NOI, as a percentage of rental income.

 

17


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

SAME PROPERTY RESULTS AND ANALYSIS BY MAJOR MARKET

(dollars and sq. ft. in thousands)

 

 

 

As of and For the Three Months Ended(1)

 

As of and For the Year Ended(2)

 

 

 

12/31/2004

 

12/31/2003

 

12/31/2004

 

12/31/2003

 

Metro Philadelphia, PA

 

 

 

 

 

 

 

 

 

Properties

 

21

 

21

 

21

 

21

 

Total sq. ft.

 

5,452

 

5,452

 

5,452

 

5,452

 

Percent leased(3)

 

91.6

%

95.5

%

91.6

%

95.5

%

Rental income(4)

 

$

30,794

 

$

34,034

 

$

131,469

 

$

139,647

 

Net operating income (NOI)(5)

 

$

15,148

 

$

19,045

 

$

71,676

 

$

80,374

 

NOI margin(6)

 

49.2

%

56.0

%

54.5

%

57.6

%

 

 

 

 

 

 

 

 

 

 

Metro Washington, D.C.:

 

 

 

 

 

 

 

 

 

Properties

 

16

 

16

 

16

 

16

 

Total sq. ft.

 

2,215

 

2,215

 

2,215

 

2,215

 

Percent leased(3)

 

93.9

%

92.4

%

93.9

%

92.4

%

Rental income(4)

 

$

15,623

 

$

15,118

 

$

60,786

 

$

61,399

 

Net operating income (NOI)(5)

 

$

9,761

 

$

9,822

 

$

38,686

 

$

40,483

 

NOI margin(6)

 

62.5

%

65.0

%

63.6

%

65.9

%

 

 

 

 

 

 

 

 

 

 

Metro Boston, MA:

 

 

 

 

 

 

 

 

 

Properties

 

36

 

36

 

30

 

30

 

Total sq. ft.

 

2,577

 

2,577

 

1,792

 

1,792

 

Percent leased(3)

 

91.4

%

89.2

%

89.4

%

86.4

%

Rental income(4)

 

$

12,902

 

$

12,230

 

$

38,790

 

$

36,395

 

Net operating income (NOI)(5)

 

$

9,241

 

$

7,901

 

$

28,217

 

$

24,359

 

NOI margin(6)

 

71.6

%

64.6

%

72.7

%

66.9

%

 

 

 

 

 

 

 

 

 

 

Oahu, HI:

 

 

 

 

 

 

 

 

 

Properties

 

—

 

—

 

—

 

—

 

Total sq. ft.

 

—

 

—

 

—

 

—

 

Percent leased(3)

 

0.0

%

0.0

%

0.0

%

0.0

%

Rental income(4)

 

$

—

 

$

—

 

$

—

 

$

—

 

Net operating income (NOI)(5)

 

$

—

 

$

—

 

$

—

 

$

—

 

NOI margin(6)

 

0.0

%

0.0

%

0.0

%

0.0

%

 

 

 

 

 

 

 

 

 

 

Southern California:

 

 

 

 

 

 

 

 

 

Properties

 

17

 

17

 

17

 

17

 

Total sq. ft.

 

1,198

 

1,198

 

1,198

 

1,198

 

Percent leased(3)

 

98.1

%

94.6

%

98.1

%

94.6

%

Rental income(4)

 

$

10,728

 

$

9,468

 

$

39,651

 

$

38,380

 

Net operating income (NOI)(5)

 

$

7,307

 

$

6,279

 

$

25,953

 

$

25,794

 

NOI margin(6)

 

68.1

%

66.3

%

65.5

%

67.2

%

 

 

 

 

 

 

 

 

 

 

Metro Atlanta, GA:

 

 

 

 

 

 

 

 

 

Properties

 

—

 

—

 

—

 

—

 

Total sq. ft.

 

—

 

—

 

—

 

—

 

Percent leased(3)

 

0.0

%

0.0

%

0.0

%

0.0

%

Rental income(4)

 

$

—

 

$

—

 

$

—

 

$

—

 

Net operating income (NOI)(5)

 

$

—

 

$

—

 

$

—

 

$

—

 

NOI margin(6)

 

0.0

%

0.0

%

0.0

%

0.0

%

 

 

 

 

 

 

 

 

 

 

Metro Austin, TX:

 

 

 

 

 

 

 

 

 

Properties

 

26

 

26

 

26

 

26

 

Total sq. ft.

 

2,809

 

2,809

 

2,809

 

2,809

 

Percent leased(3)

 

80.2

%

77.4

%

80.2

%

77.4

%

Rental income(4)

 

$

9,032

 

$

10,633

 

$

38,317

 

$

42,675

 

Net operating income (NOI)(5)

 

$

4,571

 

$

5,685

 

$

18,173

 

$

21,873

 

NOI margin(6)

 

50.6

%

53.5

%

47.4

%

51.3

%

 

 

 

 

 

 

 

 

 

 

Other Markets:

 

 

 

 

 

 

 

 

 

Properties

 

108

 

108

 

101

 

101

 

Total sq. ft.

 

11,525

 

11,525

 

9,761

 

9,761

 

Percent leased(3)

 

91.8

%

92.7

%

90.8

%

91.8

%

Rental income(4)

 

$

46,749

 

$

45,774

 

$

153,956

 

$

152,819

 

Net operating income (NOI)(5)

 

$

28,559

 

$

28,056

 

$

94,415

 

$

94,315

 

NOI margin(6)

 

61.1

%

61.3

%

61.3

%

61.7

%

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

Properties

 

224

 

224

 

211

 

211

 

Total sq. ft.

 

25,776

 

25,776

 

23,227

 

23,227

 

Percent leased(3)

 

90.9

%

91.4

%

90.3

%

90.7

%

Rental income(4)

 

$

125,828

 

$

127,257

 

$

462,969

 

$

471,315

 

Net operating income (NOI)(5)

 

$

74,587

 

$

76,788

 

$

277,120

 

$

287,198

 

NOI margin(6)

 

59.3

%

60.3

%

59.9

%

60.9

%

 

(1)         Based on properties owned continuously since 10/1/2003.

(2)         Based on properties owned continuously since 1/1/2003.

(3)         Percent leased includes space being fitted out for occupancy pursuant to signed leases and space which is leased but being offered for sublease by tenants.

(4)         Includes some triple net lease rental income.

(5)         Net operating income, or NOI, is defined as property rental income less property operating expenses.

(6)         NOI margin is defined as net operating income, or NOI, as a percentage of rental income.

 

Major markets are based on geographic market areas as defined by CoStar, except for the Metro Philadelphia, PA market which excludes properties located in Wilmington, DE.  Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar.  Oahu, HI includes all properties located on the island of Oahu.

 

18


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

SUMMARY OF EQUITY INVESTMENTS IN FORMER SUBSIDIARIES

(dollars in thousands)

 

 

 

As of
December 31,
2004

 

As of
September 30,
2004

 

As of
June 30,
2004

 

As of
March 31,
2004

 

As of
December 31,
2003

 

Common shares owned by HRP:

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

4,000,000

 

4,000,000

 

4,000,000

 

4,000,000

 

4,000,000

 

Senior Housing Properties Trust(1)

 

8,660,738

 

9,660,738

 

9,660,738

 

9,660,738

 

12,809,238

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent owned by HRP:

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

6.0

%

6.0

%

6.0

%

6.0

%

6.4

%

Senior Housing Properties Trust(1)

 

12.6

%

15.2

%

15.2

%

15.2

%

21.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Percent of HRP’s total assets (book value):

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

2.1

%

2.1

%

2.5

%

2.5

%

2.5

%

Senior Housing Properties Trust(1)

 

2.3

%

2.5

%

2.9

%

3.0

%

4.0

%

Total

 

4.3

%

4.6

%

5.4

%

5.5

%

6.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Carrying book value on HRP’s balance sheet:

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

99,136

 

$

100,002

 

$

101,184

 

$

102,492

 

$

99,708

 

Senior Housing Properties Trust(1)

 

108,668

 

118,172

 

119,261

 

120,097

 

160,500

 

Total

 

$

207,804

 

$

218,174

 

$

220,445

 

$

222,589

 

$

260,208

 

 

 

 

 

 

 

 

 

 

 

 

 

Market value of shares owned by HRP:

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

184,000

 

$

169,960

 

$

169,200

 

$

185,600

 

$

165,120

 

Senior Housing Properties Trust(1)

 

164,034

 

172,154

 

162,204

 

188,384

 

220,703

 

Total

 

$

348,034

 

$

342,114

 

$

331,404

 

$

373,984

 

$

385,823

 

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

 

12/31/2004

 

12/31/2003

 

12/31/2004

 

12/31/2003

 

Equity in earnings of equity investments:

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

2,014

 

$

8,775

 

$

6,874

 

$

13,662

 

Senior Housing Properties Trust(1)

 

2,308

 

2,923

 

8,583

 

9,863

 

 

 

$

4,322

 

$

11,698

 

$

15,457

 

$

23,525

 

 

 

 

 

 

 

 

 

 

 

EBITDA from equity investments:

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

4,067

 

$

4,513

 

$

15,544

 

$

16,446

 

Senior Housing Properties Trust(1)

 

5,048

 

6,736

 

21,293

 

26,425

 

 

 

$

9,115

 

$

11,249

 

$

36,837

 

$

42,871

 

 

 

 

 

 

 

 

 

 

 

FFO from equity investments:

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

3,405

 

$

3,920

 

$

14,045

 

$

14,874

 

Senior Housing Properties Trust(1)

 

3,461

 

4,450

 

14,528

 

17,952

 

 

 

$

6,866

 

$

8,370

 

$

28,573

 

$

32,826

 

 

 

 

 

 

 

 

 

 

 

Cash distributions from equity investments:

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

2,880

 

$

2,880

 

$

11,520

 

$

11,520

 

Senior Housing Properties Trust(1)

 

3,091

 

3,971

 

13,052

 

15,884

 

 

 

$

5,971

 

$

6,851

 

$

24,572

 

$

27,404

 

 

(1)         In January, February and December 2004, we sold 4,148,500 shares of Senior Housing Properties Trust in underwritten public offerings for $77,163 ($73,275 net of commissions and other expenses).  We recognized gains of $21,550.

 

19


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

DEBT SUMMARY

(dollars in thousands)

 

 

 

Coupon
Rate

 

Interest
Rate(1)

 

Principal
Balance

 

Maturity
Date

 

Due at
Maturity

 

Years to
Maturity

 

Secured Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured debt

See note(2)(3)

 

8.700

%

4.7500

%

$

76,039

 

10/11/2020

 

$

9,036

 

15.8

 

Secured debt

Executive Park, Atlanta, GA, excluding buildings 3, 5 and 12(4)

 

8.500

%

5.0700

%

29,750

 

4/11/2028

 

4,937

 

23.3

 

Secured debt

2665 Long Lake Road, Minneapolis, MN

 

7.020

%

7.0200

%

16,589

 

2/1/2008

 

15,724

 

3.1

 

Secured debt

4545 Seton Center Parkway, Austin, TX

 

8.400

%

8.4000

%

10,044

 

3/1/2007

 

9,433

 

2.2

 

Secured debt

2420 and 2430 Stevens Center, Richland, WA

 

8.000

%

8.0000

%

6,546

 

11/15/2008

 

1,004

 

3.9

 

Secured debt

138 Delaware Avenue, Buffalo, NY

 

5.170

%

5.1700

%

5,944

 

1/1/2009

 

134

 

4.0

 

Secured debt

One Franklin Plaza, Philadelphia, PA(5)

 

6.794

%

7.3827

%

43,407

 

1/1/2029

 

2,478

 

24.0

 

Secured debt

See note(6)

 

6.814

%

7.8420

%

249,219

 

1/31/2011

 

225,547

 

6.1

 

Secured debt

179 and 183 Sully’s Trail, Rochester, NY

 

6.000

%

6.0000

%

5,580

 

10/11/2012

 

4,507

 

7.8

 

Total / weighted average secured debt

 

7.278

%

 

 

$

443,118

 

 

 

$

272,800

 

10.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving credit facility (LIBOR + 80 bps)(7)

 

2.400

%

2.4000

%

$

175,000

 

4/28/2006

 

$

175,000

 

1.3

 

Term loan (LIBOR + 80 bps)

 

2.300

%

2.3000

%

350,000

 

8/24/2009

 

350,000

 

4.6

 

Total / weighted average unsecured floating rate debt

 

2.333

%

 

 

$

525,000

 

 

 

$

525,000

 

3.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior notes due 2005

 

6.700

%

6.8238

%

$

100,000

 

2/23/2005

 

$

100,000

 

0.1

 

Senior notes due 2010

 

8.875

%

9.0002

%

30,000

 

8/1/2010

 

30,000

 

5.6

 

Senior notes due 2010

 

8.625

%

8.7702

%

20,000

 

10/1/2010

 

20,000

 

5.8

 

Senior notes due 2012

 

6.950

%

7.1793

%

200,000

 

4/1/2012

 

200,000

 

7.3

 

Senior notes due 2013

 

6.500

%

6.6933

%

200,000

 

1/15/2013

 

200,000

 

8.0

 

Senior notes due 2014

 

5.750

%

5.8276

%

250,000

 

2/15/2014

 

250,000

 

9.1

 

Senior notes due 2015

 

6.400

%

6.6010

%

200,000

 

2/15/2015

 

200,000

 

10.1

 

Senior notes due 2016

 

6.250

%

6.4699

%

400,000

 

8/15/2016

 

400,000

 

11.6

 

Total / weighted average unsecured fixed rate debt

 

6.440

%

 

 

$

1,400,000

 

 

 

$

1,400,000

 

8.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / weighted average unsecured debt

 

5.320

%

 

 

$

1,925,000

 

 

 

$

1,925,000

 

7.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / weighted average secured debt

 

7.278

%

 

 

$

443,118

 

 

 

$

272,800

 

10.4

 

Total / weighted average unsecured floating rate debt

 

2.333

%

 

 

525,000

 

 

 

525,000

 

3.5

 

Total / weighted average unsecured fixed rate debt

 

6.440

%

 

 

1,400,000

 

 

 

1,400,000

 

8.8

 

Total / weighted average debt

 

5.686

%

 

 

$

2,368,118

 

 

 

$

2,197,800

 

7.9

 

 

(1)         Includes the effect of interest rate protection, mark-to-market accounting for certain assumed mortgages, and discounts on certain mortgages and unsecured notes. Excludes effects of offering and transaction costs.

(2)         Airport Plaza, San Diego, CA, Bellevue Corporate Plaza, Bellevue (Seattle), WA, Montrose Office Center, Rockville, MD, 6 Buildings at Corporate Square, Atlanta, GA, Parklane Towers, Dearborn, MI, 10 Buildings at Fairlane Commerce Park, Dearborn, MI, and Raintree Industrial Park, Solon (Cleveland), OH.

(3)         The loan becomes prepayable on 7/11/2005.  On 10/11/2005, the interest rate increases to at least 13.7% and the loan becomes subject to accelerated amortization.  We currently intend to prepay this loan in 2005.

(4)         The loan becomes prepayable on 1/11/2008.  On 4/11/2008, the interest rate increases to at least 13.5% and the loan becomes subject to accelerated amortization.  We currently intend to prepay this loan in 2008.

(5)         The loan becomes prepayable on 1/31/2011.  On 1/31/2011, the interest rate increases to 8.794% and the loan becomes subject to accelerated amortization.  We currently intend to prepay this loan in 2011.

(6)         Bridgepoint Square, Austin, TX, Lakewood on the Park, Austin, TX, 1600 Market Street, Philadelphia, PA, Cedars-Sinai Medical Office Towers, Los Angeles, CA, 1250 H Street NW, Washington, DC, and 625 Indiana Avenue, Washington, DC.

(7)         Subsequent to year end, in January 2005, HRP amended this unsecured revolving credit facility.  Among other changes, this amendment extended the maturity of this facility to 4/28/09 and lowered the interest payable on amounts drawn under this facility to LIBOR plus 65 b.p.

 

20


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

DEBT MATURITY SCHEDULE

(dollars in thousands)

 

 

 

Scheduled Principal Payments During Period

 

 

 

Year of Maturity

 

Secured
Debt

 

Unsecured
Floating
Rate Debt

 

Unsecured
Fixed
Rate Debt

 

Total

 

Weighted
Average
Interest Rate

 

2005

 

$

9,761

 

$

—

 

$

100,000

 

$

109,761

 

6.8

%

2006

 

10,520

 

175,000

(1) 

—

 

185,520

 

2.7

%

2007

 

20,483

 

—

 

—

 

20,483

 

7.8

%

2008

 

27,251

 

—

 

—

 

27,251

 

7.1

%

2009

 

8,894

 

350,000

 

—

 

358,894

 

2.5

%

2010

 

9,453

 

—

 

50,000

 

59,453

 

8.6

%

2011

 

231,203

 

—

 

—

 

231,203

 

6.8

%

2012

 

10,177

 

—

 

200,000

 

210,177

 

7.0

%

2013

 

6,056

 

—

 

200,000

 

206,056

 

6.6

%

2014 and thereafter(1)

 

109,320

 

—

 

850,000

 

959,320

 

6.4

%

 

 

$

443,118

 

$

525,000

 

$

1,400,000

 

$

2,368,118

 

5.7

%

 

(1)         In January 2005, the maturity of this revolving credit facility was extended to 2009.

 

21


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

LEVERAGE AND COVERAGE RATIOS

 

 

 

As of and For the Three Months Ended

 

 

 

12/31/2004

 

9/30/2004

 

6/30/2004

 

3/31/2004

 

12/31/2003

 

Leverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt / total assets

 

48.9

%

47.8

%

39.5

%

39.0

%

46.8

%

Total debt / gross book value of real estate assets(1)

 

48.9

%

48.3

%

39.8

%

39.7

%

47.7

%

Total debt / gross book value of real estate assets plus equity investments in former subsidiaries(1)

 

46.9

%

46.1

%

37.7

%

37.6

%

44.7

%

Total debt / total market capitalization

 

45.5

%

47.7

%

40.9

%

38.0

%

48.4

%

Total debt / total book capitalization

 

50.5

%

49.5

%

40.7

%

40.2

%

48.3

%

Secured debt / total assets

 

9.1

%

9.2

%

8.1

%

8.1

%

8.2

%

Variable rate debt / total debt

 

22.3

%

19.6

%

17.3

%

15.9

%

22.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA / interest expense

 

3.0

x 

3.3

x 

3.6

x 

3.4

x 

3.2

x 

EBITDA / interest expense + preferred distributions

 

2.2

x

2.4

x 

2.5

x 

2.4

x 

2.2

x 

 

(1)         Gross book value of real estate assets is real estate properties, at cost, including purchase price allocations relating to FAS 141.

 

22


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

TENANT IMPROVEMENTS, LEASING COSTS AND CAPITAL IMPROVEMENTS

(dollars and sq. ft. in thousands, except per sq. ft. data)

 

 

 

For the Three Months Ended

 

 

 

12/31/2004

 

9/30/2004

 

6/30/2004

 

3/31/2004

 

Tenant improvements (TI)

 

$

14,221

 

$

8,027

 

$

6,072

 

$

3,060

 

Leasing costs (LC)

 

10,121

 

4,264

 

7,416

 

3,146

 

Total TI and LC

 

24,342

 

12,291

 

13,488

 

6,206

 

 

 

 

 

 

 

 

 

 

 

Recurring building improvements

 

8,470

 

5,869

 

3,952

 

3,003

 

Development and redevelopment activities

 

1,684

 

1,722

 

2,666

 

1,575

 

Total capital improvements, including TI and LC

 

$

34,496

 

$

19,882

 

$

20,106

 

$

10,784

 

 

 

 

 

 

 

 

 

 

 

Sq. ft. beginning of period

 

43,333

 

36,652

 

36,026

 

35,895

 

Sq. ft. end of period

 

44,154

 

43,333

 

36,652

 

36,026

 

Average sq. ft. during period

 

43,744

 

39,993

 

36,339

 

35,961

 

 

 

 

 

 

 

 

 

 

 

Recurring building improvements per average sq. ft. during period

 

$

0.19

 

$

0.15

 

$

0.11

 

$

0.08

 

 

23


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

ACQUISITIONS INFORMATION

(dollars and sq. ft. in thousands)

 

Acquired

 

Location

 

Office/
Industrial

 

Number of
Properties

 

Sq. Ft.

 

Purchase
Price(1)

 

Cap
Rate(2)

 

Average
Remaining
Lease
Term(3)

 

Percent
Leased(4)

 

Major Tenant

 

Feb-04

 

Arnold, MO

 

Office

 

1

 

65

 

$

8,300

 

10.6

%

5.6

 

100.0

%

Convergys Customer Management Group, Inc.

 

Feb-04

 

Quincy, MA

 

Office

 

1

 

46

 

7,685

 

11.9

%

4.4

 

100.0

%

American Express Company

 

 

 

Q1 2004 Subtotal / Weighted
Average

 

2

 

111

 

15,985

 

11.2

%

5.1

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apr-04

 

Memphis, TN

 

Office

 

1

 

125

 

21,000

 

9.4

%

6.9

 

100.0

%

Sparks Corporation, LLC

 

Jun-04

 

St. Paul, MN

 

Industrial

 

1

 

423

 

12,950

 

10.0

%

4.8

 

98.7

%

The Sportsman’s Guide, Inc.

 

Jun-04

 

Virginia Beach, VA

 

Office

 

1

 

75

 

6,750

 

10.6

%

4.7

 

88.1

%

Hayes Seay Mattern & Mattern, Inc.

 

 

 

Q2 2004 Subtotal / Weighted
Average

 

3

 

623

 

40,700

 

9.8

%

5.2

 

97.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jul-04

 

Hallwood(5)

 

Office & Industrial

 

113

 

5,156

 

430,000

 

10.0

%

4.7

 

86.0

%

U.S. Government, Ford Motor Company and Manufacturers & Traders Trust Company

 

Jul-04

 

Rockville, MD

 

Office

 

3

 

283

 

75,300

 

9.6

%

7.9

 

100.0

%

Manugistics, Inc.

 

Jul-04

 

Memphis, TN

 

Office

 

1

 

131

 

11,925

 

9.9

%

2.8

 

89.6

%

U.S. Postal Service

 

Aug-04

 

Atlanta, GA

 

Office

 

1

 

177

 

24,488

 

11.0

%

6.0

 

97.8

%

Affiliated Computer Services, Inc.

 

Sep-04

 

Atlanta, GA

 

Office

 

1

 

90

 

9,460

 

11.6

%

4.3

 

98.9

%

Practice Works System

 

Sep-04

 

Monroeville, PA

 

Office

 

1

 

480

 

64,693

 

11.2

%

6.3

 

100.0

%

Westinghouse Electric Corporation

 

Sep-04

 

Quincy, MA

 

Office

 

2

 

356

 

61,450

 

9.6

%

6.6

 

99.5

%

CitiStreet & Boston Financial Data

 

 

 

Q3 2004 Subtotal / Weighted
Average

 

122

 

6,673

 

677,316

 

10.1

%

5.0

 

88.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oct-04

 

Longmont, CO

 

Industrial

 

1

 

547

 

38,500

 

11.5

%

8.2

 

90.2

%

Intrado, Inc.

 

Nov-04

 

Rochester, NY

 

Office

 

8

 

345

 

45,750

 

9.6

%

6.6

 

96.4

%

Performance Technologies, Inc.

 

 

 

Q4 2004 Subtotal / Weighted
Average

 

9

 

892

 

84,250

 

10.5

%

7.6

 

92.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / weighted average

 

136

 

8,299

 

$

818,251

 

10.1

%

5.5

 

90.1

%

 

 

 

(1)         Represents the gross purchase price and excludes closing costs and purchase price allocations relating to FAS 141.

(2)         Represents estimated current GAAP based annual net operating income, or NOI, which is defined as property rental income less property operating expenses, divided by the purchase price.

(3)         Average remaining lease term based on rental income as of the date acquired.

(4)         Percent leased as of the date acquired.

(5)         Represents our acquisition of Hallwood Realty Partners, L.P., which included properties located in Atlanta, GA, Dearborn, MI, Baltimore and Rockville, MD, Bellevue, Kent and Tukwila (Seattle), WA, Solon (Cleveland), OH and Sacremento and San Diego, CA.

 

24


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

FINANCING ACTIVITIES

(share amounts and dollars in thousands)

 

 

 

For the Three Months Ended

 

 

 

12/31/2004

 

9/30/2004

 

6/30/2004

 

3/31/2004

 

 

 

 

 

 

 

 

 

 

 

Debt Transactions(1):

 

 

 

 

 

 

 

 

 

New debt raised

 

$

—

 

$

500,000

 

$

—

 

$

250,000

 

New debt assumed as part of acquisitions

 

5,580

 

114,378

 

—

 

—

 

Total new debt

 

5,580

 

614,378

 

—

 

250,000

 

 

 

 

 

 

 

 

 

 

 

Debt retired

 

—

 

—

 

—

 

(143,000

)

Net debt

 

$

5,580

 

$

614,378

 

$

—

 

$

107,000

 

 

 

 

 

 

 

 

 

 

 

Equity Transactions:

 

 

 

 

 

 

 

 

 

New common shares issued

 

—

 

—

 

—

 

34,500

 

New common equity raised, net

 

$

—

 

$

—

 

$

—

 

$

323,639

 

 

 

 

 

 

 

 

 

 

 

New preferred shares issued

 

—

 

—

 

—

 

—

 

New preferred equity raised, net

 

—

 

—

 

—

 

—

 

Total new equity

 

$

—

 

$

—

 

$

—

 

$

323,639

 

 

 

 

 

 

 

 

 

 

 

Preferred equity retired

 

—

 

—

 

—

 

—

 

Net equity

 

$

—

 

$

—

 

$

—

 

$

323,639

 

 

(1)         The above financing activities excludes drawings and repayments on our revolving credit facility.

 

25



 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

PORTFOLIO SUMMARY

(dollars and sq. ft. in thousands)

 

 

 

Office

 

Industrial

 

Total

 

Percent

 

Square Feet:

 

 

 

 

 

 

 

 

 

CBD

 

10,731

 

158

 

10,889

 

24.7

%

Suburban

 

17,598

 

15,667

 

33,265

 

75.3

%

Total

 

28,329

 

15,825

 

44,154

 

100.0

%

Percent

 

64.2

%

35.8

%

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants(1)

 

5,453

 

—

 

5,453

 

12.3

%

Medical related tenants(1)

 

5,220

 

151

 

5,371

 

12.2

%

Industrial land leases (Oahu, HI)(1)

 

—

 

9,642

 

9,642

 

21.8

%

Other investment grade tenants(1)(2)

 

6,730

 

1,338

 

8,068

 

18.3

%

Other tenants (1)

 

8,378

 

4,136

 

12,514

 

28.4

%

Vacant

 

2,548

 

558

 

3,106

 

7.0

%

Total

 

28,329

 

15,825

 

44,154

 

100.0

%

Percent

 

64.2

%

35.8

%

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Rental Income(3):

 

 

 

 

 

 

 

 

 

CBD

 

$

267,238

 

$

1,063

 

$

268,301

 

39.9

%

Suburban

 

308,702

 

95,437

 

404,139

 

60.1

%

Total

 

$

575,940

 

$

96,500

 

$

672,440

 

100.0

%

Percent

 

85.6

%

14.4

%

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

$

114,566

 

$

—

 

$

114,566

 

17.0

%

Medical related tenants

 

123,271

 

788

 

124,059

 

18.4

%

Industrial land leases (Oahu, HI)

 

—

 

43,097

 

43,097

 

6.4

%

Other investment grade tenants(2)

 

141,419

 

17,620

 

159,039

 

23.7

%

Other tenants

 

196,684

 

34,995

 

231,679

 

34.5

%

Total

 

$

575,940

 

$

96,500

 

$

672,440

 

100.0

%

Percent

 

85.6

%

14.4

%

100.0

%

 

 

 

(1)         Sq. ft. is pursuant to signed leases as of December 31, 2004, and includes (i) space being fitted out for occupancy and (ii) space which is leased but being offered for sublease.

(2)         Excludes investment grade tenants included above.

(3)         Annualized rental income is rents pursuant to signed leases as of December 31, 2004, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

 

 

27


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

SUMMARY OF PROPERTIES BY MAJOR MARKET

(sq. ft. in thousands)

 

 

 

As of 12/31/04

 

For theThree Months Ended 12/31/04

 

Market

 

Properties

 

Sq. Ft.

 

% Sq. Ft.

 

% of Rental
Income(1)

 

% NOI(2)

 

Metro Philadelphia, PA

 

21

 

5,452

 

12.3

%

18.4

%

14.8

%

Metro Washington, DC

 

20

 

2,645

 

6.0

%

11.1

%

11.7

%

Metro Boston, MA

 

39

 

2,979

 

6.7

%

9.1

%

10.3

%

Oahu, HI

 

12

 

9,699

 

22.0

%

6.4

%

8.5

%

Southern California

 

24

 

1,444

 

3.3

%

7.1

%

7.9

%

Metro Atlanta, GA

 

36

 

1,845

 

4.2

%

5.0

%

5.1

%

Metro Austin, TX

 

26

 

2,809

 

6.4

%

5.4

%

4.5

%

Other markets

 

197

 

17,281

 

39.1

%

37.5

%

37.2

%

Total

 

375

 

44,154

 

100.0

%

100.0

%

100.0

%

 

 

 

Percent NOI For the Three Months Ended(2)

 

 

 

12/31/2004

 

9/30/2004

 

6/30/2004

 

3/31/2004

 

12/31/2003

 

Metro Philadelphia, PA

 

14.8

%

19.9

%

21.0

%

21.4

%

23.9

%

Metro Washington, DC

 

11.7

%

11.4

%

11.3

%

11.1

%

12.4

%

Metro Boston, MA

 

10.3

%

10.8

%

10.6

%

10.6

%

9.9

%

Oahu, HI

 

8.5

%

8.7

%

9.9

%

10.0

%

3.1

%

Southern California

 

7.9

%

6.7

%

7.0

%

8.0

%

8.1

%

Metro Atlanta, GA

 

5.1

%

4.2

%

0.0

%

0.0

%

0.0

%

Metro Austin, TX

 

4.5

%

4.5

%

5.0

%

5.5

%

7.1

%

Other markets

 

37.2

%

33.8

%

35.2

%

33.4

%

35.5

%

Total

 

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

 

(1)         Includes some triple net lease rental income.

(2)         NOI, or net operating income, is defined as property rental income less property operating expenses.

 

Major markets are based on geographic market areas as defined by CoStar, except for the Metro Philadelphia, PA market which excludes properties located in Wilmington, DE.  Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar.  Oahu, HI includes all properties located on the island of Oahu.

 

28


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

LEASING SUMMARY

(dollars and sq. ft. in thousands, except per sq. ft. data)

 

 

 

As of and For the Three Months Ended

 

 

 

12/31/2004

 

9/30/2004

 

6/30/2004

 

3/31/2004

 

12/31/2003

 

Properties

 

375

 

365

 

243

 

240

 

238

 

Total square feet

 

44,154

 

43,333

 

36,652

 

36,026

 

35,895

 

Percentage leased

 

93.0

%

93.1

%

93.5

%

93.2

%

93.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Leasing Activity (sq. ft.):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

563

 

471

 

453

 

171

 

376

 

Renewals

 

869

 

1,081

 

525

 

319

 

226

 

Total

 

1,432

 

1,552

 

978

 

490

 

602

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Rolldown(1):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

6

%

-5

%

-16

%

-12

%

-23

%

Renewals

 

-2

%

1

%

-7

%

-5

%

-4

%

Weighted average by sq. ft.

 

1

%

0

%

-11

%

-8

%

-16

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments(2):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

27,921

 

$

15,162

 

$

22,852

 

$

4,334

 

$

14,251

 

Renewals

 

16,219

 

20,865

 

12,830

 

5,852

 

1,503

 

Total

 

$

44,140

 

$

36,027

 

$

35,682

 

$

10,186

 

$

15,754

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments per Sq. Ft.(2):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

49.59

 

$

32.19

 

$

50.45

 

$

25.35

 

$

37.90

 

Renewals

 

$

18.66

 

$

19.30

 

$

24.44

 

$

18.34

 

$

6.65

 

Total

 

$

30.82

 

$

23.21

 

$

36.48

 

$

20.79

 

$

26.17

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Lease Term by Sq. Ft. (years):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

9.6

 

9.1

 

11.2

 

6.7

 

10.0

 

Renewals

 

8.4

 

7.9

 

9.2

 

6.2

 

6.8

 

Total

 

8.9

 

8.2

 

10.2

 

6.4

 

8.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments per Sq. Ft. per Year:

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

5.17

 

$

3.54

 

$

4.50

 

$

3.78

 

$

3.79

 

Renewals

 

$

2.22

 

$

2.44

 

$

2.66

 

$

2.96

 

$

0.98

 

Total

 

$

3.46

 

$

2.83

 

$

3.58

 

$

3.25

 

$

3.04

 

 

(1)         Percent difference in prior rents charged for same space.  Rents include expense reimbursements and exclude lease value amortization.

(2)         Represents commitments to tenant improvements (TI) and leasing commissions and costs (LC).

 

The above leasing summary is based on leases executed during the periods.

 

29


 

 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

OCCUPANCY AND LEASING ANALYSIS BY PROPERTY TYPE AND MAJOR MARKET

(dollars and sq. ft. in thousands)

 

 

 

 

 

Sq. Ft. Leases Executed During
Three Months Ended 12/31/04

 

Sq. Ft. Leased

 

Property Type/Market

 

Total Sq. Ft.
As of
12/31/04

 

New

 

Renewals

 

Total

 

As of
9/30/2004

 

Expired

 

New and
Renewals

 

Acquisitions

 

As of
12/31/04

 

Office

 

28,329

 

391

 

694

 

1,085

 

25,637

 

(1,274

)

1,085

 

333

 

25,781

 

Industrial

 

15,825

 

172

 

175

 

347

 

14,685

 

(258

)

347

 

493

 

15,267

 

Total

 

44,154

 

563

 

869

 

1,432

 

40,322

 

(1,532

)

1,432

 

826

 

41,048

 

Percent leased

 

 

 

 

 

 

 

 

 

93.1

%(1)

 

 

 

 

 

 

93.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

10,889

 

97

 

430

 

527

 

10,338

 

(754

)

527

 

—

 

10,111

 

Suburban

 

33,265

 

466

 

439

 

905

 

29,984

 

(778

)

905

 

826

 

30,937

 

Total

 

44,154

 

563

 

869

 

1,432

 

40,322

 

(1,532

)

1,432

 

826

 

41,048

 

Percent leased

 

 

 

 

 

 

 

 

 

93.1

%(1)

 

 

 

 

 

 

93.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

5,452

 

59

 

13

 

72

 

5,223

 

(301

)

72

 

—

 

4,994

 

Metro Washington, DC

 

2,645

 

52

 

44

 

96

 

2,463

 

(56

)

96

 

—

 

2,503

 

Metro Boston, MA

 

2,979

 

122

 

—

 

122

 

2,658

 

(28

)

122

 

—

 

2,752

 

Oahu, HI

 

9,699

 

35

 

—

 

35

 

9,639

 

(32

)

35

 

—

 

9,642

 

Southern California

 

1,444

 

107

 

66

 

173

 

1,349

 

(121

)

173

 

—

 

1,401

 

Metro Atlanta, GA

 

1,845

 

32

 

19

 

51

 

1,749

 

(90

)

51

 

—

 

1,710

 

Metro Austin, TX

 

2,809

 

59

 

3

 

62

 

2,219

 

(28

)

62

 

—

 

2,253

 

Other markets

 

17,281

 

97

 

724

 

821

 

15,022

 

(876

)

821

 

826

 

15,793

 

Total

 

44,154

 

563

 

869

 

1,432

 

40,322

 

(1,532

)

1,432

 

826

 

41,048

 

Percent leased

 

 

 

 

 

 

 

 

 

93.1

%(1)

 

 

 

 

 

 

93.0

%

 

(1)         Based on total sq. ft. as of September 30, 2004, excludes acquisitions and effects of space remeasurements during the period.

 

Major markets are based on geographic market areas as defined by CoStar, except for the Metro Philadelphia, PA market which excludes Wilmington, DE.  Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar.  Oahu, HI includes all properties located on the island of Oahu.

 

30


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

TENANTS REPRESENTING 1% OR MORE OF TOTAL ANNUALIZED RENT

(sq. ft. in thousands)

 

Tenant

 

Sq. Ft.(1)

 

% of Total
Sq. Ft.

 

% of Annualized
Rent(2)

 

Expiration

 

1

 

U.S. Government

 

5,115

 

11.6

%

15.8

%

2005 to 2020

 

2

 

GlaxoSmithKline plc

 

605

 

1.4

%

2.2

%

2013

 

3

 

PNC Financial Services Group

 

488

 

1.1

%

1.7

%

2011

 

4

 

Towers, Perrin, Forster & Crosby, Inc.

 

476

 

1.1

%

1.7

%

2005, 2008, 2011

 

5

 

Tyco International Ltd

 

660

 

1.5

%

1.4

%

2007, 2011

 

6

 

Motorola, Inc.

 

770

 

1.7

%

1.3

%

2006, 2010

 

7

 

Solectron Corporation

 

765

 

1.7

%

1.3

%

2014

 

8

 

Manugistics, Inc.

 

283

 

0.6

%

1.3

%

2012

 

9

 

Ballard Spahr Andrews & Ingersoll, LLP

 

230

 

0.5

%

1.2

%

2015

 

10

 

Westinghouse Electric Corporation

 

534

 

1.2

%

1.2

%

2005, 2010

 

11

 

Mellon Bank, N.A.

 

234

 

0.5

%

1.1

%

2012, 2015

 

12

 

Fallon Health Clinics

 

444

 

1.0

%

1.1

%

2019

 

 

Total

 

10,604

 

23.9

%

31.3

%

 

 

 

(1)         Sq. ft. is pursuant to signed leases as of December 31, 2004, and includes (i) space being fitted out for occupancy and (ii) space which is leased but being offered for sublease.

(2)         Annualized rent is rents pursuant to signed leases as of December 31, 2004, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

 

31


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

THREE YEAR LEASE EXPIRATION SCHEDULE BY PROPERTY TYPE

(dollars and sq. ft. in thousands)

 

 

 

Total as of
12/31/04

 

2005

 

2006

 

2007

 

2008 and
Thereafter

 

 

 

 

 

 

 

 

 

 

 

 

 

Office:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

28,329

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

25,781

 

2,444

 

1,968

 

2,734

 

18,635

 

Percent

 

100.0

%

9.5

%

7.6

%

10.6

%

72.3

%

Annualized rent(2)

 

$

575,940

 

$

57,206

 

$

44,492

 

$

62,559

 

$

411,683

 

Percent

 

100.0

%

9.9

%

7.7

%

10.9

%

71.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Industrial:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

15,825

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

15,267

 

361

 

498

 

706

 

13,702

 

Percent

 

100.0

%

2.4

%

3.3

%

4.6

%

89.7

%

Annualized rent(2)

 

$

96,500

 

$

3,456

 

$

3,175

 

$

7,540

 

$

82,329

 

Percent

 

100.0

%

3.6

%

3.3

%

7.8

%

85.3

%

 

 

 

 

 

 

 

 

 

 

 

 

CBD:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

10,889

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

10,111

 

706

 

625

 

875

 

7,905

 

Percent

 

100.0

%

7.0

%

6.2

%

8.7

%

78.1

%

Annualized rent(2)

 

$

268,301

 

$

22,005

 

$

18,846

 

$

25,045

 

$

202,405

 

Percent

 

100.0

%

8.2

%

7.0

%

9.3

%

75.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Suburban:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

33,265

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

30,937

 

2,099

 

1,841

 

2,565

 

24,432

 

Percent

 

100.0

%

6.8

%

6.0

%

8.3

%

78.9

%

Annualized rent(2)

 

$

404,139

 

$

38,657

 

$

28,821

 

$

45,054

 

$

291,607

 

Percent

 

100.0

%

9.6

%

7.1

%

11.1

%

72.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

44,154

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

41,048

 

2,805

 

2,466

 

3,440

 

32,337

 

Percent

 

100.0

%

6.8

%

6.0

%

8.4

%

78.8

%

Annualized rent(2)

 

$

672,440

 

$

60,662

 

$

47,667

 

$

70,099

 

$

494,012

 

Percent

 

100.0

%

9.0

%

7.1

%

10.4

%

73.5

%

 

(1)         Sq. ft. is pursuant to signed leases as of December 31, 2004, and includes (i) space being fitted out for occupancy and (ii) space which is leased but being offered for sublease.

(2)         Annualized rent is rents pursuant to signed leases as of December 31, 2004, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

 

32


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

THREE YEAR LEASE EXPIRATION SCHEDULE BY MAJOR MARKET

(dollars and sq. ft. in thousands)

 

 

 

Total as of
12/31/04

 

2005

 

2006

 

2007

 

2008 and
Thereafter

 

Metro Philadelphia, PA:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

5,452

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

4,994

 

373

 

145

 

287

 

4,189

 

Percent

 

100.0

%

7.5

%

2.9

%

5.7

%

83.9

%

Annualized rent(2)

 

$

124,264

 

$

9,467

 

$

5,455

 

$

5,268

 

$

104,074

 

Percent

 

100.0

%

7.6

%

4.4

%

4.2

%

83.8

%

Metro Washington, DC:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,645

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

2,503

 

295

 

167

 

242

 

1,799

 

Percent

 

100.0

%

11.8

%

6.7

%

9.7

%

71.8

%

Annualized rent(2)

 

$

74,717

 

$

7,613

 

$

5,090

 

$

7,001

 

$

55,013

 

Percent

 

100.0

%

10.2

%

6.8

%

9.4

%

73.6

%

Metro Boston, MA

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,979

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

2,752

 

197

 

205

 

642

 

1,708

 

Percent

 

100.0

%

7.2

%

7.4

%

23.3

%

62.1

%

Annualized rent(2)

 

$

59,463

 

$

7,363

 

$

4,254

 

$

13,900

 

$

33,946

 

Percent

 

100.0

%

12.4

%

7.2

%

23.4

%

57.0

%

Oahu, HI:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

9,699

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

9,642

 

9

 

—

 

—

 

9,633

 

Percent

 

100.0

%

0.1

%

0.0

%

0.0

%

99.9

%

Annualized rent(2)

 

$

43,093

 

$

85

 

$

—

 

$

—

 

$

43,008

 

Percent

 

100.0

%

0.2

%

0.0

%

0.0

%

99.8

%

Southern California:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

1,444

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

1,401

 

88

 

142

 

281

 

890

 

Percent

 

100.0

%

6.3

%

10.1

%

20.1

%

63.5

%

Annualized rent(2)

 

$

45,361

 

$

3,694

 

$

5,038

 

$

8,802

 

$

27,827

 

Percent

 

100.0

%

8.1

%

11.1

%

19.4

%

61.4

%

Metro Atlanta, GA:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

1,845

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

1,710

 

261

 

69

 

131

 

1,249

 

Percent

 

100.0

%

15.3

%

4.0

%

7.7

%

73.0

%

Annualized rent(2)

 

$

33,761

 

$

4,818

 

$

1,196

 

$

2,634

 

$

25,113

 

Percent

 

100.0

%

14.3

%

3.5

%

7.8

%

74.4

%

Metro Austin, TX:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,809

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

2,253

 

199

 

52

 

579

 

1,423

 

Percent

 

100.0

%

8.8

%

2.3

%

25.7

%

63.2

%

Annualized rent(2)

 

$

38,218

 

$

4,844

 

$

1,150

 

$

9,595

 

$

22,629

 

Percent

 

100.0

%

12.7

%

3.0

%

25.1

%

59.2

%

Other markets:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

17,281

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

15,793

 

1,383

 

1,686

 

1,278

 

11,446

 

Percent

 

100.0

%

8.8

%

10.7

%

8.1

%

72.4

%

Annualized rent(2)

 

$

253,563

 

$

22,778

 

$

25,484

 

$

22,899

 

$

182,402

 

Percent

 

100.0

%

9.0

%

10.1

%

9.0

%

71.9

%

Total:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

44,154

 

 

 

 

 

 

 

 

 

Leased sq. ft.(1)

 

41,048

 

2,805

 

2,466

 

3,440

 

32,337

 

Percent

 

100.0

%

6.8

%

6.0

%

8.4

%

78.8

%

Annualized rent(2)

 

$

672,440

 

$

60,662

 

$

47,667

 

$

70,099

 

$

494,012

 

Percent

 

100.0

%

9.0

%

7.1

%

10.4

%

73.5

%

 

(1)         Sq. ft. is pursuant to signed leases as of December 31, 2004, and includes (i) space being fitted out for occupancy and (ii) space which is leased but being offered for sublease.

(2)         Annualized rent is rents pursuant to signed leases as of December 31, 2004, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

 

Major markets are based on geographic market areas as defined by CoStar, except for the Metro Philadelphia, PA market which excludes Wilmington, DE.  Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar.  Oahu, HI includes all properties located on the island of Oahu.

 

33


 

HRPT Properties Trust

Supplemental Operating and Financial Data

December 31, 2004

 

TEN YEAR PORTFOLIO LEASE EXPIRATION SCHEDULE

(dollars and sq. ft. in thousands)

 

 

 

Sq. Ft
Expiring(1)

 

% of Sq. Ft.
Expiring

 

Annualized Rent
Expiring(2)

 

% of Annualized
Rent Expiring

 

2005

 

2,805

 

6.8

%

$

60,662

 

9.0

%

2006

 

2,466

 

6.0

%

47,667

 

7.1

%

2007

 

3,440

 

8.4

%

70,099

 

10.4

%

2008

 

3,540

 

8.6

%

64,393

 

9.6

%

2009

 

2,934

 

7.1

%

53,070

 

7.9

%

2010

 

3,110

 

7.6

%

50,656

 

7.5

%

2011

 

3,808

 

9.3

%

71,163

 

10.6

%

2012

 

2,481

 

6.0

%

52,533

 

7.8

%

2013

 

1,559

 

3.8

%

31,892

 

4.7

%

2014

 

1,741

 

4.2

%

29,129

 

4.3

%

2015 and thereafter

 

13,164

 

32.2

%

141,176

 

21.1

%

Total

 

41,048

 

100.0

%

$

672,440

 

100.0

%

 

 

 

 

 

 

 

 

 

 

Weighted average remaining lease term (in years)

 

9.5

 

 

 

7.0

 

 

 

 

(1)         Sq. ft. is pursuant to signed leases as of December 31, 2004, and includes (i) space being fitted out for occupancy and (ii) space which is leased but being offered for sublease.

(2)         Annualized rent is rents pursuant to signed leases as of December 31, 2004, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

 

34

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