EX-99.1 2 a06-11273_1ex99d1.htm EX-99

Exhibit 99.1

400 Centre Street, Newton, MA 02458-2076

 

 

tel: (617) 332-3990 fax: (617) 332-2261

 

FOR IMMEDIATE RELEASE

 

Contact:

 

 

Timothy A. Bonang

 

 

Manager of Investor Relations

 

 

(617) 796-8149

 

 

www.hrpreit.com

 

HRPT Properties Trust Announces Results for the Period
Ended March 31, 2006

___________________________________________

Newton, MA (May 8, 2006): HRPT Properties Trust (NYSE: HRP) today announced financial results for the quarter ended March 31, 2006.

Results for the quarter ended March 31, 2006:

Net income available for common shareholders was $131.4 million for the quarter ended March 31, 2006, compared to $20.7 million for the same quarter last year. Net income available for common shareholders per share (EPS) for the quarters ended March 31, 2006 and 2005 was $0.63 and $0.12, respectively. The increase in net income available for common shareholders includes gains recognized in 2006 from the sale of our investments in shares of Senior Housing Properties Trust and Hospitality Properties Trust.

Funds from operations (FFO) available for common shareholders for the quarter ended March 31, 2006, was $64.7 million, or $0.31 per share. This compares to FFO available for common shareholders for the quarter ended March 31, 2005, of $56.7 million, or $0.32 per share.

The weighted average number of common shares outstanding totaled 209,860,625 and 179,816,525, for the quarters ended March 31, 2006 and 2005, respectively.

Occupancy and Leasing Results:

As of March 31, 2006, 93.4% of HRPT’s total square feet was leased, compared to 93.9% leased as of March 31, 2005.

A Maryland Real Estate Trust with transferable shares of beneficial interest listed on the New York Stock Exchange.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.



HRPT signed new leases for 606,000 square feet and lease renewals for 1,160,000 square feet during the quarter ended March 31, 2006, for weighted average rental rates that were 2% above prior rents for the same space.

Average lease terms for leases signed during the first quarter of 2006 were 10.3 years. Commitments for tenant improvement and leasing commission (TI/LC) costs for leases signed during the quarter ended March 31, 2006 totaled $10.71 per square foot on a weighted average basis.

Investing Activities:

During the first quarter of 2006, HRPT acquired two portfolios of properties with 1.8 million square feet of office space for $201.6 million, plus closing costs.

Conference Call:

On Monday, May 8, 2006, at 1:00 p.m. Eastern Time, Adam Portnoy, executive vice president, and John Popeo, chief financial officer, will host a conference call to discuss the first quarter 2006 results.

The conference call telephone number is (800) 810-0924. Participants calling from outside the United States and Canada should dial (913) 981-4900. 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 May 14, 2006. To hear the replay, dial (719) 457-0820. The replay pass code is 7584489.

A live audio webcast of the conference call will also be available in a listen only mode on HRPT’s web site, which is located at www.hrpreit.com. Participants wanting to access the webcast should visit the company’s web site about five minutes before the call. The archived webcast will be available for replay on HRPT’s web site for about one week after the call.

Supplemental Data:

A copy of HRPT’s First Quarter 2006 Supplemental Operating and Financial Data is available for download at HRPT’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 March 31, 2006, HRPT owned 474 properties with 56.8 million square feet, including almost 18 million square feet of leased industrial and commercial lands in Oahu, HI. HRPT is headquartered in Newton, Massachusetts.

end

 

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HRPT Properties Trust
Statements of Income and Funds from Operations
(amounts in thousands, except per share data)

 

 

 

Quarter Ended
March 31,

 

 

 

2006

 

2005

 

 

 

 

 

 

 

Rental income

 

$

189,559

 

$

166,554

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

Operating expenses

 

71,803

 

63,107

 

Depreciation and amortization

 

37,666

 

32,511

 

General and administrative

 

7,873

 

6,875

 

Total expenses

 

117,342

 

102,493

 

 

 

 

 

 

 

Operating income

 

72,217

 

64,061

 

 

 

 

 

 

 

Interest income

 

1,235

 

180

 

Interest expense (including amortization of note discounts and premiums and deferred financing fees of $1,138 and $665, respectively)

 

(41,294

)

(35,607

)

Loss on early extinguishment of debt

 

(1,659

)

—

 

Equity in earnings of equity investments (1)

 

3,136

 

3,394

 

Gain on sale of shares of equity investments (1)

 

116,287

 

—

 

Income from continuing operations

 

149,922

 

32,028

 

(Loss) income from discontinued operations

 

(87

)

207

 

Net income

 

149,835

 

32,235

 

Preferred distributions

 

(11,508

)

(11,500

)

Excess redemption price paid over carrying value of preferred shares (2)

 

(6,914

)

—

 

Net income available for common shareholders

 

$

131,413

 

$

20,735

 

 

 

 

 

 

 

Calculation of Funds from Operations, or FFO: (3)

 

 

 

 

 

Net income

 

$

149,835

 

$

32,235

 

Plus: depreciation and amortization

 

37,751

 

32,721

 

Loss on early extinguishment of debt:

 

 

 

 

 

Add: amount included in total expenses

 

1,659

 

—

 

Less: portion settled in cash

 

—

 

—

 

Less: gain on sale of shares of equity investments

 

(116,287

)

—

 

Less: equity in earnings of equity investments

 

(3,136

)

(3,394

)

Plus: FFO from equity investments

 

6,426

 

6,681

 

FFO

 

76,248

 

68,243

 

Less: preferred distributions

 

(11,508

)

(11,500

)

FFO available for common shareholders

 

$

64,740

 

$

56,743

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

209,861

 

179,817

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

Income from continuing operations

 

$

0.63

 

$

0.11

 

(Loss) income from discontinued operations

 

—

 

—

 

Net income available for common shareholders

 

0.63

 

0.12

 

FFO available for common shareholders

 

0.31

 

0.32

 

Common distributions paid

 

0.21

 

0.21

 

 

3



 

HRPT Properties Trust
Statements of Income and Funds from Operations
(amounts in thousands, except per share data)

(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. In March 2006, we sold all of our Senior Housing common shares for gains of $39,066, and all of our Hospitality Properties shares for gains of $77,221.

(2)             In March 2006, we redeemed all our 8 million Series A preferred shares for their liquidation preference of $25/share plus accrued and unpaid distributions through the date of the redemption.

(3)             We compute FFO as shown in the calculation above. Our calculation of FFO differs from the National Association of Real Estate Investment Trusts, or NAREIT, definition because we add loss on early extinguishment of debt unless 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 generally accepted accounting principles, or GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity. FFO is one important factor considered by our Board of Trustees in determining the amount of distributions to shareholders. Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our revolving bank credit facility and public debt covenants, the availability of debt and equity capital to us and our expectations of future capital requirements and operating performance.

4



HRPT Properties Trust
Consolidated Balance Sheets
(amounts in thousands, except share data)

 

 

 

March 31,

 

December 31,

 

 

 

2006

 

2005

 

 

 

 

 

(audited)

 

ASSETS

 

 

 

 

 

Real estate properties:

 

 

 

 

 

Land

 

$

1,101,349

 

$

1,080,563

 

Buildings and improvements

 

4,333,819

 

4,144,011

 

 

 

5,435,168

 

5,224,574

 

Accumulated depreciation

 

(579,090

)

(548,460

)

 

 

4,856,078

 

4,676,114

 

Properties held for sale

 

10,726

 

10,779

 

Acquired real estate leases

 

177,279

 

161,787

 

Equity investments in former subsidiaries

 

—

 

194,297

 

Cash and cash equivalents

 

35,587

 

19,445

 

Restricted cash

 

13,316

 

18,348

 

Rents receivable, net of allowance for doubtful accounts of $3,910 and $3,767, respectively

 

158,022

 

145,385

 

Other assets, net

 

104,181

 

101,012

 

Total assets

 

$

5,355,189

 

$

5,327,167

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Revolving credit facility

 

$

193,000

 

$

256,000

 

Senior unsecured debt, net

 

1,940,287

 

1,889,991

 

Mortgage notes payable, net

 

379,959

 

374,165

 

Accounts payable and accrued expenses

 

67,078

 

80,125

 

Acquired real estate lease obligations

 

43,711

 

38,987

 

Rent collected in advance

 

23,114

 

17,858

 

Security deposits

 

14,577

 

13,679

 

Due to affiliates

 

9,636

 

10,876

 

Total liabilities

 

2,671,362

 

2,681,681

 

 

 

 

 

 

 

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; zero and 8,000,000 shares issued and outstanding, respectively, aggregate liquidation preference $200,000

 

—

 

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

 

Series C preferred shares; 7 1/8% cumulative redeemable at par on February 15, 2011; 6,000,000 and zero shares issued and outstanding, respectively, aggregate liquidation preference $150,000

 

145,015

 

—

 

Common shares of beneficial interest, $0.01 par value:

 

 

 

 

 

250,000,000 shares authorized; 209,860,625 shares issued and outstanding

 

2,099

 

2,099

 

Additional paid in capital

 

2,772,245

 

2,779,159

 

Cumulative net income

 

1,602,609

 

1,452,774

 

Cumulative common distributions

 

(1,938,889

)

(1,894,818

)

Cumulative preferred distributions

 

(189,101

)

(176,663

)

Total shareholders’ equity

 

2,683,827

 

2,645,486

 

Total liabilities and shareholders’ equity

 

$

5,355,189

 

$

5,327,167

 

 

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