EX-99.2 3 a06-11273_1ex99d2.htm EX-99

Exhibit 99.2

HRPT PROPERTIES TRUST

First Quarter 2006

Supplemental Operating and Financial Data

 

All amounts in this report are unaudited, except for the
December 31, 2005 Consolidated Balance Sheet.




TABLE OF CONTENTS

 

Page

 

 

 

 

 

CORPORATE INFORMATION

 

 

 

 

 

 

 

Company Profile

 

5

 

Investor Information

 

6

 

Research Coverage

 

7

 

 

 

 

 

FINANCIAL INFORMATION

 

 

 

 

 

 

 

Key Financial Data

 

9

 

Consolidated Balance Sheets

 

10

 

Consolidated Statements of Income

 

11

 

Consolidated Statements of Cash Flows

 

12

 

Calculation of EBITDA

 

13

 

Calculation and Reconciliation of Property Net Operating Income (NOI)

 

14

 

Calculation of Funds from Operations (FFO)

 

15

 

Summary Results of Operations by Property Type

 

16

 

Summary Results of Operations by Major Market

 

17

 

Same Property Results and Analysis by Property Type

 

18

 

Same Property Results and Analysis by Major Market

 

19

 

Summary of Equity Investments in Former Subsidiaries

 

20

 

Debt Summary

 

21

 

Debt Maturity Schedule

 

22

 

Leverage Ratios, Coverage Ratios and Public Debt Covenants

 

23

 

Tenant Improvements, Leasing Costs and Capital Improvements

 

24

 

2006 Acquisitions and Dispositions Information

 

25

 

Financing Activities

 

26

 

 

 

 

 

PORTFOLIO AND LEASING INFORMATION

 

 

 

 

 

 

 

Portfolio Summary by Property Type, Tenant and Major Market (Square Feet)

 

28

 

Portfolio Summary by Property Type, Tenant and Major Market (Annualized Rental Income)

 

29

 

Summary of Properties by Major Market

 

30

 

Leasing Summary

 

31

 

Occupancy and Leasing Analysis by Property Type and Major Market (3 Months Ended 3/31/2006)

 

32

 

Tenants Representing 1% or More of Total Rent

 

33

 

Three Year Lease Expiration Schedule by Property Type

 

34

 

Three Year Lease Expiration Schedule by Major Market

 

35

 

Portfolio Lease Expiration Schedule

 

36

 

 

 

2




WARNING REGARDING FORWARD LOOKING STATEMENTS

 

CERTAIN STATEMENTS AND IMPLICATIONS CONTAINED IN THIS SUPPLEMENTAL OPERATING AND FINANCIAL DATA REPORT FOR THE QUARTER ENDED MARCH 31, 2006 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 FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. 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. 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.




 

CORPORATE INFORMATION




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

COMPANY PROFILE


The Company:

HRPT Properties Trust, or HRPT, 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 March 31, 2006, we also owned approximately 18 million square feet of leased industrial and commercial lands in Oahu, Hawaii. We have large concentrations of properties leased to the U.S. Government and medical related tenants. We have been investment grade rated since 1994 and we are included in a number of financial indices, including the Russell 1000®, the MSCI US REIT Index and the S&P REIT Composite Index.

Strategy:

Our primary business strategy is to efficiently operate our properties to maintain high occupancies, at market rates, with strong credit quality tenants. We attempt 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 related 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. 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:

HRPT is managed by Reit Management & Research LLC, or RMR. RMR was founded in 1986 to manage public investments in real estate. As of March 31, 2006, RMR managed one of the largest portfolios of publicly owned real estate in the United States, including more than 980 properties located in 42 states, Washington, DC, Puerto Rico and Ontario, Canada. RMR has over 400 employees in its headquarters and regional offices located throughout the country. In addition to managing HRPT, 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 four mutual funds which invest in unaffiliated real estate companies. The public companies managed by RMR had combined total market capitalization of approximately $12.0 billion as of March 31, 2006. We believe that being managed by RMR is a competitive advantage for HRPT because RMR provides HRPT with a depth and quality of management and experience which may be unequaled in the real estate industry. We also believe RMR is able to provide management services to HRPT at costs that are lower than HRPT 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 B — HRP-B
Preferred Stock Series C — HRP-C

Senior Unsecured Debt Ratings:

Moody’s — Baa2
Standard & Poor’s — BBB

Portfolio Data (as of 3/31/06) (1):

Total properties

 

474

 

Total sq. ft. (000s)

 

56,835

 

Percent leased

 

93.4

%

 

Portfolio Concentration by Sq. Ft. (as of 3/31/06) (1):

 

Office

 

Industrial

 

Total

 

CBD

 

19.9

%

0.3

%

20.2

%

Suburban

 

38.1

%

41.7

%

79.8

%

Total

 

58.0

%

42.0

%

100.0

%

 

Portfolio Concentration by NOI (Q1 2006) (1) (2):

 

Office

 

Industrial

 

Total

 

CBD

 

33.8

%

0.2

%

34.0

%

Suburban

 

49.6

%

16.4

%

66.0

%

Total

 

83.4

%

16.6

%

100.0

%

 

Portfolio Concentration by Major Market (1):

 

3/31/06

 

Q1 2006

 

 

 

Sq. Ft.

 

NOI (2)

 

Metro Philadelphia, PA

 

9.6

%

14.3

%

Metro Washington, DC

 

4.7

%

10.6

%

Oahu, HI

 

31.6

%

9.7

%

Metro Boston, MA

 

4.8

%

8.5

%

Southern California

 

2.5

%

7.1

%

Metro Atlanta, GA

 

3.7

%

4.7

%

Metro Austin, TX

 

4.9

%

4.4

%

Other Markets

 

38.2

%

40.7

%

Total

 

100.0

%

100.0

%

 

(1)             Excludes properties classified in discontinued operations.

(2)             We compute NOI, or property net operating income, as rental income from real estate less property operating expenses; NOI excludes income from other investments; see page 14 for calculation of NOI and reconciliation of NOI to Net Income Available for Common Shareholders.

5




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

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

 

 

Tjarda Clagett

 

Independent Trustee

 

 

 

Senior Management

 

 

John A. Mannix

Adam D. Portnoy

President and Chief Operating Officer

Executive Vice President

 

 

John C. Popeo

Jennifer B. Clark

Treasurer, Chief Financial Officer and Secretary

Senior Vice President

 

 

David M. Lepore

 

Senior Vice President

 

 

 

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




RESEARCH COVERAGE


Equity Research Coverage

 

 

A.G. Edwards & Sons

Raymond James

David Aubuchon

Paul Puryear

(314) 955-5452

(727) 573-3800

 

 

Cantor Fitzgerald

Smith Barney Citigroup

Philip Martin

Jordan Sadler

(312) 469-7485

(212) 816-0438

 

 

Ferris, Baker Watts

Stifel, Nicolaus

Charles Place

John Guinee

(410) 659-4657

(410) 454-5520

 

 

Merrill Lynch

Wachovia Securities

Steve Sakwa

Stephen Swett

(212) 449-0335

(212) 214-5050

 

 

Debt Research Coverage

 

 

Banc of America Securities

Credit Suisse First Boston

Chris Brown

Matthew Lynch

(704) 386-2524

(212) 325-6456

 

 

Bear Stearns & Company

Merrill Lynch

Susan Berliner

John Forrey

(212) 272-3824

(212) 449-1812

 

 

Citigroup

Wachovia Securities

Thomas Cook

Dan Sullivan

(212) 723-1112

(703) 383-6441

 

 

Rating Agencies

 

 

Moody’s Investor Service

Standard and Poor’s

Lori Halpern

Linda Phelps

(212) 553-1098

(212) 438-3059

 

HRPT is followed by the analysts and its publicly held debt and preferred shares are rated by the rating agencies listed above. Please note that any opinions, estimates or forecasts regarding HRPT’s performance made by these analysts or agencies do not represent opinions, forecasts or predictions of HRPT or its management. HRPT 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




FINANCIAL INFORMATION

8




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

KEY FINANCIAL DATA


(amounts in thousands, except per share data)

 

 

As of and For the Three Months Ended

 

 

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

6/30/2005

 

3/31/2005

 

Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (at end of period)

 

209,861

 

209,861

 

209,861

 

199,821

 

199,817

 

Preferred shares outstanding (at end of period)

 

18,000

 

20,000

 

20,000

 

20,000

 

20,000

 

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

 

209,861

 

209,861

 

201,459

 

199,819

 

179,817

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

Price at end of period

 

$

11.74

 

$

10.35

 

$

12.41

 

$

12.43

 

$

11.91

 

High during period

 

$

12.09

 

$

12.51

 

$

13.25

 

$

12.60

 

$

13.20

 

Low during period

 

$

10.30

 

$

10.18

 

$

11.75

 

$

11.35

 

$

10.95

 

Annualized dividends paid per share

 

$

0.84

 

$

0.84

 

$

0.84

 

$

0.84

 

$

0.84

 

Annualized dividend yield (at end of period)

 

7.2

%

8.1

%

6.8

%

6.8

%

7.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Market Capitalization:

 

 

 

 

 

 

 

 

 

 

 

Total debt (book value)

 

$

2,513,246

 

$

2,520,156

 

$

2,333,543

 

$

2,310,524

 

$

2,157,568

 

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

 

467,940

 

514,240

 

523,880

 

533,600

 

530,280

 

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

 

2,463,768

 

2,172,061

 

2,604,375

 

2,483,775

 

2,379,820

 

Total market capitalization

 

$

5,444,954

 

$

5,206,457

 

$

5,461,798

 

$

5,327,899

 

$

5,067,668

 

Total debt / total market capitalization

 

46.2

%

48.4

%

42.7

%

43.4

%

42.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Book Capitalization:

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

$

2,513,246

 

$

2,520,156

 

$

2,333,543

 

$

2,310,524

 

$

2,157,568

 

Plus: total stockholders’ equity

 

2,683,827

 

2,645,486

 

2,657,350

 

2,547,047

 

2,549,709

 

Total book capitalization

 

$

5,197,073

 

$

5,165,642

 

$

4,990,893

 

$

4,857,571

 

$

4,707,277

 

Total debt / total book capitalization

 

48.4

%

48.8

%

46.8

%

47.6

%

45.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,355,189

 

$

5,327,167

 

$

5,154,048

 

$

5,012,423

 

$

4,823,683

 

Total liabilities

 

$

2,671,362

 

$

2,681,681

 

$

2,496,698

 

$

2,465,376

 

$

2,273,974

 

Gross book value of real estate assets (2)

 

$

5,615,904

 

$

5,398,394

 

$

5,210,972

 

$

5,052,720

 

$

4,831,691

 

Equity investments in former subsidiaries (book value)

 

$

 

$

194,297

 

$

205,498

 

$

207,655

 

$

205,547

 

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

 

44.8

%

45.1

%

43.1

%

43.9

%

42.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Selected Income Statement Data (3):

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

189,559

 

$

186,066

 

$

183,372

 

$

174,289

 

$

167,031

 

EBITDA (4)

 

$

119,562

 

$

114,683

 

$

115,921

 

$

112,613

 

$

105,939

 

Property net operating income (NOI) (5)

 

$

117,756

 

$

112,328

 

$

114,005

 

$

110,369

 

$

103,748

 

NOI margin (6)

 

62.1

%

60.4

%

62.2

%

63.3

%

62.1

%

Net income

 

$

149,835

 

$

43,706

 

$

38,297

 

$

50,746

 

$

32,235

 

Preferred distributions

 

$

(11,508

)

$

(11,500

)

$

(11,500

)

$

(11,500

)

$

(11,500

)

Excess redemption price paid over carrying value of preferred shares

 

$

(6,914

)

$

 

$

 

$

 

$

 

Net income available for common shareholders

 

$

131,413

 

$

32,206

 

$

26,797

 

$

39,246

 

$

20,735

 

Funds from operations (FFO) (7)

 

$

76,248

 

$

74,055

 

$

76,438

 

$

76,338

 

$

68,243

 

FFO available for common shareholders (7)

 

$

64,740

 

$

62,555

 

$

64,938

 

$

64,838

 

$

56,743

 

Common distributions paid

 

$

44,071

 

$

44,070

 

$

41,963

 

$

41,961

 

$

37,237

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

0.63

 

$

0.15

 

$

0.13

 

$

0.20

 

$

0.12

 

FFO available for common shareholders (7)

 

$

0.31

 

$

0.30

 

$

0.32

 

$

0.32

 

$

0.32

 

Common distributions paid

 

$

0.21

 

$

0.21

 

$

0.21

 

$

0.21

 

$

0.21

 

FFO payout ratio

 

67.7

%

70.0

%

65.6

%

65.6

%

65.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

EBITDA (4) / interest expense

 

2.9x

 

3.0x

 

3.3x

 

3.2x

 

3.0x

 

EBITDA (4) / interest expense and preferred distributions

 

2.3x

 

2.3x

 

2.5x

 

2.4x

 

2.2x

 


(1)             HRPT 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 less impairment write-downs, if any.

(3)             Results as of and for the three months ended 3/31/2006 exclude properties classified in discontinued operations, if any; prior periods reflect amounts previously reported and excludes retroactive adjustments for properties reclassified to discontinued operations in the current period.

(4)             See page 13 for calculation of EBITDA.

(5)             Property net operating income, or NOI, is defined as rental income from real estate less property operating expenses; NOI excludes income from other investments; see page 14 for calculation of NOI and reconciliation of NOI to Net Income Available for Common Shareholders.

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

(7)             See page 15 for calculation of FFO and FFO available for common shareholders.

9




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

CONSOLIDATED BALANCE SHEETS


(amounts in thousands, except share data)

 

 

As of
March 31,
2006

 

As of
December 31,
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

 

 

10




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

CONSOLIDATED STATEMENTS OF INCOME


 (amounts in thousands, except per share data)

 

 

For the Three Months Ended

 

 

 

3/31/2006

 

3/31/2005

 

Rental income (1)

 

$

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 (2)

 

3,136

 

3,394

 

Gain on sale of shares of equity investments (2)

 

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 (3)

 

(6,914

)

 

Net income available for common shareholders

 

$

131,413

 

$

20,735

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

209,861

 

179,817

 

 

 

 

 

 

 

Basic and diluted earnings 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

 

 

 

 

 

 

 

Additional Data:

 

 

 

 

 

General and administrative expenses / rental income

 

4.15

%

4.13

%

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

 

0.15

%

0.14

%

 

 

 

 

 

 

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

 

$

4,827

 

$

6,537

 

Lease value amortization (FAS 141) (1)

 

$

(3,189

)

$

(1,667

)

Lease termination fees included in rental income

 

$

249

 

$

150

 

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. 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.

(3)             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 redemption.

11




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

CONSOLIDATED STATEMENTS OF CASH FLOWS


(amounts in thousands)

 

 

For the Three Months Ended

 

 

 

3/31/2006

 

3/31/2005

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

149,835

 

$

32,235

 

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

 

 

 

 

 

Depreciation

 

30,703

 

27,186

 

Amortization of note discounts and premiums and deferred financing fees

 

1,138

 

665

 

Amortization of acquired real estate leases

 

7,675

 

5,197

 

Other amortization

 

2,562

 

2,005

 

Loss on early extinguishment of debt

 

1,659

 

 

Equity in earnings of equity investments

 

(3,136

)

(3,394

)

Gain on sale of shares of equity investments

 

(116,287

)

 

Distributions of earnings from equity investments

 

3,136

 

3,394

 

Change in assets and liabilities:

 

 

 

 

 

Decrease in restricted cash

 

5,032

 

2,419

 

Increase in rents receivable and other assets

 

(19,547

)

(29,460

)

Decrease in accounts payable and accrued expenses

 

(13,047

)

(24,222

)

Increase in rent collected in advance

 

5,256

 

677

 

Increase in security deposits

 

898

 

113

 

Decrease in due to affiliates

 

(1,240

)

(9,852

)

Cash provided by operating activities

 

54,637

 

6,963

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Real estate acquisitions and improvements

 

(221,525

)

(17,177

)

Distributions in excess of earnings from equity investments

 

2,251

 

2,257

 

Proceeds from sale of equity investments

 

308,333

 

 

Cash provided by (used for) investing activities

 

89,059

 

(14,920

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Proceeds from issuance of preferred shares, net

 

145,015

 

 

Redemption of preferred shares

 

(200,000

)

 

Proceeds from issuance of common shares, net

 

 

259,017

 

Proceeds from borrowings

 

851,000

 

180,000

 

Payments on borrowings

 

(865,716

)

(377,136

)

Deferred financing fees

 

(1,344

)

(4,813

)

Distributions to common shareholders

 

(44,071

)

(37,237

)

Distributions to preferred shareholders

 

(12,438

)

(11,500

)

Cash (used for) provided by financing activities

 

(127,554

)

8,331

 

 

 

 

 

 

 

Increase in cash and cash equivalents

 

16,142

 

374

 

Cash and cash equivalents at beginning of period

 

19,445

 

21,961

 

Cash and cash equivalents at end of period

 

$

35,587

 

$

22,335

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

Interest paid

 

$

48,200

 

$

50,797

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

Real estate acquisitions

 

$

(7,532

)

$

 

 

 

 

 

 

 

Non-cash financing activities:

 

 

 

 

 

Assumption of mortgage notes payable

 

$

7,532

 

$

 

 

 

 

 

 

 

 

12




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

CALCULATION OF EBITDA


(dollars in thousands)

 

 

 

For the Three Months Ended

 

 

 

3/31/2006

 

3/31/2005

 

 

 

 

 

 

 

Net income

 

$

149,835

 

$

32,235

 

Plus: interest expense

 

41,294

 

35,607

 

Plus: income taxes

 

 

 

Plus: depreciation and amortization

 

37,751

 

32,721

 

Plus: loss on early extinguishment of debt

 

1,659

 

 

Less: gain on sale of equity investments

 

(116,287

)

 

Less: equity in earnings of equity investments

 

(3,136

)

(3,394

)

Plus: EBITDA from equity investments

 

8,446

 

8,770

 

EBITDA

 

$

119,562

 

$

105,939

 

 

We compute EBITDA, or earnings before interest, taxes, depreciation and amortization, as net income less gains on equity transactions of equity investments and gains on sales of properties, 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 our current operating performance with our past operating performance and of 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
March 31, 2006

CALCULATION AND RECONCILIATION OF PROPERTY NET OPERATING INCOME (NOI) 


(dollars in thousands)

 

 

For the Three Months Ended

 

 

 

3/31/2006

 

3/31/2005

 

Calculation of NOI (1):

 

 

 

 

 

Rental income

 

$

189,559

 

$

166,554

 

Operating expenses

 

71,803

 

63,107

 

Property net operating income (NOI)

 

$

117,756

 

$

103,447

 

 

 

 

 

 

 

Reconciliation of NOI to Net Income Available for Common Shareholders:

 

 

 

 

 

 

 

 

 

 

 

Property net operating income

 

$

117,756

 

$

103,447

 

Depreciation and amortization

 

37,666

 

32,511

 

General and administrative

 

7,873

 

6,875

 

Operating income

 

72,217

 

64,061

 

 

 

 

 

 

 

Interest income

 

1,235

 

180

 

Interest expense

 

(41,294

)

(35,607

)

Loss on early extinguishment of debt

 

(1,659

)

 

Equity in earnings of equity investments

 

3,136

 

3,394

 

Gain on sale of equity investments

 

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 of liquidation preference over carrying value of preferred shares

 

(6,914

)

 

Net income available for common shareholders

 

$

131,413

 

$

20,735

 


(1)             Excludes properties classified in discontinued operations.

We compute NOI as shown above. We consider NOI to be an appropriate supplemental measure to net income available for common shareholders because it helps both investors and management to understand the operations of our properties. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our results of operations because it reflects only those income and expense items that are incurred at the property level. Our management also uses NOI to evaluate individual, regional and company-wide property level performance. NOI excludes certain components from net income available for common shareholders in order to provide results that are more closely related to a property’s results of operations. NOI 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, net income available for common shareholders or cash flow from operating activities as a measure of financial performance.

14




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

CALCULATION OF FUNDS FROM OPERATIONS (FFO)


(amounts in thousands, except per share data)

 

 

 

For the Three Months Ended

 

 

 

3/31/2006

 

3/31/2005

 

Net income

 

$

149,835

 

$

32,235

 

Plus: depreciation and amortization

 

37,751

 

32,721

 

Loss on early extinguishment of debt:

 

 

 

 

 

Add: amount included in expenses

 

1,659

 

 

Less: portion settled in cash

 

 

 

Less: gain on sale 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 shares outstanding

 

209,861

 

179,817

 

 

 

 

 

 

 

FFO available for common shareholders per share

 

$

0.31

 

$

0.32

 

 

We compute FFO and FFO available for common shareholders as shown 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.

15




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

SUMMARY RESULTS OF OPERATIONS BY PROPERTY TYPE


(dollars and sq. ft. in thousands)

 

 

As of and For the Three
Months Ended (1)

 

 

 

3/31/2006

 

3/31/2005

 

Number of Properties:

 

 

 

 

 

Office

 

337

 

273

 

Industrial

 

137

 

94

 

Total

 

474

 

367

 

 

 

 

 

 

 

CBD

 

50

 

49

 

Suburban

 

424

 

318

 

Total

 

474

 

367

 

 

 

 

 

 

 

Square Feet (2):

 

 

 

 

 

Office

 

33,002

 

28,225

 

Industrial

 

23,833

 

15,588

 

Total

 

56,835

 

43,813

 

 

 

 

 

 

 

CBD

 

11,485

 

10,856

 

Suburban

 

45,350

 

32,957

 

Total

 

56,835

 

43,813

 

 

 

 

 

 

 

Percent Leased (3):

 

 

 

 

 

Office

 

91.6

%

92.2

%

Industrial

 

96.0

%

97.0

%

Total

 

93.4

%

93.9

%

 

 

 

 

 

 

CBD

 

92.3

%

94.1

%

Suburban

 

93.7

%

93.8

%

Total

 

93.4

%

93.9

%

 

 

 

 

 

 

Rental Income (4):

 

 

 

 

 

Office

 

$

162,716

 

$

142,003

 

Industrial

 

26,843

 

24,551

 

Total

 

$

189,559

 

$

166,554

 

 

 

 

 

 

 

CBD

 

$

71,380

 

$

66,200

 

Suburban

 

118,179

 

100,354

 

Total

 

$

189,559

 

$

166,554

 

 

 

 

 

 

 

Property Net Operating Income (NOI) (5):

 

 

 

 

 

Office

 

$

98,173

 

$

86,778

 

Industrial

 

19,583

 

16,669

 

Total

 

$

117,756

 

$

103,447

 

 

 

 

 

 

 

CBD

 

$

40,029

 

$

37,966

 

Suburban

 

77,727

 

65,481

 

Total

 

$

117,756

 

$

103,447

 

 

 

 

 

 

 

NOI Margin (6):

 

 

 

 

 

Office

 

60.3

%

61.1

%

Industrial

 

73.0

%

67.9

%

Total

 

62.1

%

62.1

%

 

 

 

 

 

 

CBD

 

56.1

%

57.4

%

Suburban

 

65.8

%

65.3

%

Total

 

62.1

%

62.1

%


(1)             Excludes properties classified in discontinued operations.

(2)             Prior periods exclude space remeasurements made during the current period.

(3)             Percent leased includes (i) space being fitted out for occupancy pursuant to signed leases and (ii) space which is leased, but is not occupied or is being offered for sublease by tenants.

(4)             Includes some triple net lease rental income.

(5)             Property net operating income, or NOI, is defined as property rental income less property operating expenses; see page 14 for calculation of NOI and reconciliation of NOI to Net Income Available for Common Shareholders.

(6)             NOI margin is defined as NOI as a percentage of rental income.

16




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

SUMMARY RESULTS OF OPERATIONS BY MAJOR MARKET


(dollars and sq. ft. in thousands)

 

 

As of and For the Three
Months Ended (1)

 

 

 

3/31/2006

 

3/31/2005

 

Number of Properties:

 

 

 

 

 

Metro Philadelphia, PA

 

21

 

21

 

Metro Washington, DC

 

20

 

20

 

Oahu, HI

 

55

 

12

 

Metro Boston, MA

 

36

 

36

 

Southern California

 

24

 

24

 

Metro Atlanta, GA

 

41

 

32

 

Metro Austin, TX

 

26

 

26

 

Other markets

 

251

 

196

 

Total

 

474

 

367

 

 

 

 

 

 

 

Square Feet (2):

 

 

 

 

 

Metro Philadelphia, PA

 

5,447

 

5,452

 

Metro Washington, DC

 

2,645

 

2,644

 

Oahu, HI

 

17,943

 

9,699

 

Metro Boston, MA

 

2,737

 

2,742

 

Southern California

 

1,444

 

1,444

 

Metro Atlanta, GA

 

2,128

 

1,777

 

Metro Austin, TX

 

2,806

 

2,806

 

Other markets

 

21,685

 

17,249

 

Total

 

56,835

 

43,813

 

 

 

 

 

 

 

Percent Leased (3):

 

 

 

 

 

Metro Philadelphia, PA

 

91.5

%

93.8

%

Metro Washington, DC

 

95.4

%

95.2

%

Oahu, HI

 

97.0

%

99.4

%

Metro Boston, MA

 

96.8

%

95.5

%

Southern California

 

97.7

%

96.3

%

Metro Atlanta, GA

 

87.4

%

91.3

%

Metro Austin, TX

 

90.8

%

84.6

%

Other markets

 

90.9

%

91.9

%

Total

 

93.4

%

93.9

%

 

 

 

 

 

 

Rental Income (4):

 

 

 

 

 

Metro Philadelphia, PA

 

$

31,862

 

$

30,957

 

Metro Washington, DC

 

19,714

 

18,589

 

Oahu, HI

 

14,092

 

10,921

 

Metro Boston, MA

 

15,032

 

14,049

 

Southern California

 

11,925

 

11,522

 

Metro Atlanta, GA

 

8,836

 

7,954

 

Metro Austin, TX

 

10,091

 

9,724

 

Other markets

 

78,007

 

62,838

 

Total

 

$

189,559

 

$

166,554

 

 

 

 

 

 

 

Property Net Operating Income (NOI) (5):

 

 

 

 

 

Metro Philadelphia, PA

 

$

16,855

 

$

16,242

 

Metro Washington, DC

 

12,468

 

12,340

 

Oahu, HI

 

11,372

 

8,700

 

Metro Boston, MA

 

9,972

 

9,474

 

Southern California

 

8,389

 

7,860

 

Metro Atlanta, GA

 

5,556

 

5,170

 

Metro Austin, TX

 

5,141

 

4,759

 

Other markets

 

48,003

 

38,902

 

Total

 

$

117,756

 

$

103,447

 

 

 

 

 

 

 

NOI Margin (6):

 

 

 

 

 

Metro Philadelphia, PA

 

52.9

%

52.5

%

Metro Washington, DC

 

63.2

%

66.4

%

Oahu, HI

 

80.7

%

79.7

%

Metro Boston, MA

 

66.3

%

67.4

%

Southern California

 

70.3

%

68.2

%

Metro Atlanta, GA

 

62.9

%

65.0

%

Metro Austin, TX

 

50.9

%

48.9

%

Other markets

 

61.5

%

61.9

%

Total

 

62.1

%

62.1

%


(1)             Excludes properties classified in discontinued operations.

(2)             Prior periods exclude space remeasurements made during the current period.

(3)             Percent leased includes (i) space being fitted out for occupancy pursuant to signed leases and (ii) space which is leased, but is not occupied or is being offered for sublease by tenants.

(4)             Includes some triple net lease rental income.

(5)             Property net operating income, or NOI, is defined as property rental income less property operating expenses; see page 14 for calculation of NOI and reconciliation of NOI to Net Income Available for Common Shareholders.

(6)             NOI margin is defined as NOI as a percentage of rental income.

We define our major markets as markets which constitute 5% or more of our leaseable square feet, rental income or NOI. 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.

17




HRPT Properties Trust
 Supplemental Operating and Financial Data
 March 31, 2006

SAME PROPERTY RESULTS AND ANALYSIS BY PROPERTY TYPE


(dollars and sq. ft. in thousands)

 

 

As of and For the
Three Months Ended (1)

 

 

 

3/31/2006

 

3/31/2005

 

Office:

 

 

 

 

 

Properties

 

273

 

273

 

Total sq. ft.

 

28,227

 

28,227

 

Percent leased (2)

 

92.0

%

92.2

%

Rental income (3)

 

$

146,959

 

$

142,001

 

Property Net operating income (NOI) (4)

 

$

88,503

 

$

86,778

 

NOI % growth

 

2.0

%

 

 

 

 

 

 

 

 

Industrial:

 

 

 

 

 

Properties

 

94

 

94

 

Total sq. ft.

 

15,531

 

15,531

 

Percent leased (2)

 

97.0

%

97.3

%

Rental income (3)

 

$

24,141

 

$

24,551

 

Property Net operating income (NOI) (4)

 

$

17,349

 

$

16,668

 

NOI % growth

 

4.1

%

 

 

 

 

 

 

 

 

CBD:

 

 

 

 

 

Properties

 

49

 

49

 

Total sq. ft.

 

10,855

 

10,855

 

Percent leased (2)

 

92.0

%

94.2

%

Rental income (3)

 

$

68,194

 

$

66,201

 

Property Net operating income (NOI) (4)

 

$

38,095

 

$

37,965

 

NOI % growth

 

0.3

%

 

 

 

 

 

 

 

 

Suburban:

 

 

 

 

 

Properties

 

318

 

318

 

Total sq. ft.

 

32,903

 

32,903

 

Percent leased (2)

 

94.3

%

93.9

%

Rental income (3)

 

$

102,906

 

$

100,351

 

Property Net operating income (NOI) (4)

 

$

67,757

 

$

65,481

 

NOI % growth

 

3.5

%

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

Properties

 

367

 

367

 

Total sq. ft.

 

43,758

 

43,758

 

Percent leased (2)

 

93.7

%

94.0

%

Rental income (3)

 

$

171,100

 

$

166,552

 

Property Net operating income (NOI) (4)

 

$

105,852

 

$

103,446

 

NOI % growth

 

2.3

%

 

 

 


(1)             Based on properties owned continuously since 1/1/2005 and excludes properties classified in discontinued operations.

(2)             Percent leased includes (i) space being fitted out for occupancy pursuant to signed leases and (ii) space which is leased, but is not occupied or is being offered for sublease by tenants.

(3)             Includes some triple net lease rental income.

(4)             Property net operating income, or NOI, is defined as property rental income less property operating expenses; see page 14 for calculation of NOI and reconciliation of NOI to Net Income Available for Common Shareholders.

18




HRPT Properties Trust
 Supplemental Operating and Financial Data
 March 31, 2006

SAME PROPERTY RESULTS AND ANALYSIS BY MAJOR MARKET


(dollars and sq. ft. in thousands)

 

 

As of and For the
Three Months Ended (1)

 

 

 

3/31/2006

 

3/31/2005

 

Metro Philadelphia, PA:

 

 

 

 

 

Properties

 

21

 

21

 

Total sq. ft.

 

5,447

 

5,447

 

Percent leased (2)

 

91.5

%

93.8

%

Rental income (3)

 

$

31,862

 

$

30,957

 

Property net operating income (NOI) (4)

 

$

16,855

 

$

16,242

 

NOI % growth

 

3.8

%

 

 

 

 

 

 

 

 

Metro Washington, D.C.:

 

 

 

 

 

Properties

 

20

 

20

 

Total sq. ft.

 

2,645

 

2,645

 

Percent leased (2)

 

95.4

%

95.2

%

Rental income (3)

 

$

19,714

 

$

18,589

 

Property net operating income (NOI) (4)

 

$

12,468

 

$

12,340

 

NOI % growth

 

1.0

%

 

 

 

 

 

 

 

 

Oahu, HI:

 

 

 

 

 

Properties

 

12

 

12

 

Total sq. ft.

 

9,641

 

9,641

 

Percent leased (2)

 

99.4

%

99.4

%

Rental income (3)

 

$

11,390

 

$

10,921

 

Property net operating income (NOI) (4)

 

$

9,138

 

$

8,700

 

NOI % growth

 

5.0

%

 

 

 

 

 

 

 

 

Metro Boston, MA:

 

 

 

 

 

Properties

 

36

 

36

 

Total sq. ft.

 

2,737

 

2,737

 

Percent leased (2)

 

96.8

%

95.6

%

Rental income (3)

 

$

15,032

 

$

14,049

 

Property net operating income (NOI) (4)

 

$

9,972

 

$

9,474

 

NOI % growth

 

5.3

%

 

 

 

 

 

 

 

 

Southern California:

 

 

 

 

 

Properties

 

24

 

24

 

Total sq. ft.

 

1,444

 

1,444

 

Percent leased (2)

 

97.7

%

96.3

%

Rental income (3)

 

$

11,925

 

$

11,522

 

Property net operating income (NOI) (4)

 

$

8,389

 

$

7,860

 

NOI % growth

 

6.7

%

 

 

 

 

 

 

 

 

Metro Atlanta, GA:

 

 

 

 

 

Properties

 

32

 

32

 

Total sq. ft.

 

1,787

 

1,787

 

Percent leased (2)

 

90.0

%

90.8

%

Rental income (3)

 

$

7,910

 

$

7,954

 

Property net operating income (NOI) (4)

 

$

5,010

 

$

5,170

 

NOI % growth

 

-3.1

%

 

 

 

 

 

 

 

 

Metro Austin, TX:

 

 

 

 

 

Properties

 

26

 

26

 

Total sq. ft.

 

2,806

 

2,806

 

Percent leased (2)

 

90.8

%

84.6

%

Rental income (3)

 

$

10,091

 

$

9,724

 

Property net operating income (NOI) (4)

 

$

5,141

 

$

4,759

 

NOI % growth

 

8.0

%

 

 

 

 

 

 

 

 

Other Markets:

 

 

 

 

 

Properties

 

196

 

196

 

Total sq. ft.

 

17,251

 

17,251

 

Percent leased (2)

 

91.0

%

91.9

%

Rental income (3)

 

$

63,176

 

$

62,836

 

Property net operating income (NOI) (4)

 

$

38,879

 

$

38,901

 

NOI % growth

 

-0.1

%

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

Properties

 

367

 

367

 

Total sq. ft.

 

43,758

 

43,758

 

Percent leased (2)

 

93.7

%

94.0

%

Rental income (3)

 

$

171,100

 

$

166,552

 

Property net operating income (NOI) (4)

 

$

105,852

 

$

103,446

 

NOI % growth

 

2.3

%

 

 


(1)             Based on properties owned continuously since 1/1/2005 and excludes properties classified in discontinued operations.

(2)             Percent leased includes (i) space being fitted out for occupancy pursuant to signed leases and (ii) space which is leased, but is not occupied or is being offered for sublease by tenants.

(3)             Includes some triple net lease rental income.

(4)             Property net operating income, or NOI, is defined as property rental income less property operating expenses; see page 14 for calculation of NOI and reconciliation of NOI to Net Income Available for Common Shareholders.

We define our major markets as markets which constitute 5% or more of our leaseable square feet, rental income or NOI. 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.

19




HRPT Properties Trust
Supplemental Operating and Financial Data
 March 31, 2006

SUMMARY OF EQUITY INVESTMENTS IN FORMER SUBSIDIARIES


(dollars in thousands)

 

 

3/31/2006 (1)

 

12/31/2005 (2)

 

9/30/2005

 

6/30/2005

 

3/31/2005

 

Common shares owned by HRP:

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

 

4,000,000

 

4,000,000

 

4,000,000

 

4,000,000

 

Senior Housing Properties Trust

 

 

7,710,738

 

8,660,738

 

8,660,738

 

8,660,738

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent owned by HRP:

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

%

5.6

%

5.6

%

5.6

%

6.0

%

Senior Housing Properties Trust

 

%

10.7

%

12.6

%

12.6

%

12.6

%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

%

1.9

%

1.9

%

2.0

%

2.0

%

Senior Housing Properties Trust

 

%

1.8

%

2.1

%

2.1

%

2.3

%

Total

 

%

3.7

%

4.0

%

4.1

%

4.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Carrying book value on HRP’s balance sheet:

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

 

$

99,345

 

$

99,719

 

$

100,875

 

$

97,829

 

Senior Housing Properties Trust

 

 

94,952

 

105,779

 

106,780

 

107,718

 

Total

 

$

 

$

194,297

 

$

205,498

 

$

207,655

 

$

205,547

 

 

 

 

 

 

 

 

 

 

 

 

 

Market value of shares owned by HRP:

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

 

$

160,400

 

$

171,440

 

$

176,280

 

$

161,520

 

Senior Housing Properties Trust

 

 

130,389

 

164,554

 

163,775

 

144,461

 

Total

 

$

 

$

290,789

 

$

335,994

 

$

340,055

 

$

305,981

 

 

 

 

For the Three
Months Ended

 

 

 

3/31/2006 (1)

 

3/31/2005

 

Equity in earnings of equity investments:

 

 

 

 

 

Hospitality Properties Trust

 

$

1,624

 

$

1,573

 

Senior Housing Properties Trust

 

1,512

 

1,821

 

 

 

$

3,136

 

$

3,394

 

 

 

 

 

 

 

EBITDA from equity investments:

 

 

 

 

 

Hospitality Properties Trust

 

$

4,774

 

$

4,146

 

Senior Housing Properties Trust

 

3,672

 

4,624

 

 

 

$

8,446

 

$

8,770

 

 

 

 

 

 

 

FFO from equity investments:

 

 

 

 

 

Hospitality Properties Trust

 

$

3,703

 

$

3,414

 

Senior Housing Properties Trust

 

2,723

 

3,267

 

 

 

$

6,426

 

$

6,681

 

 

 

 

 

 

 

Cash distributions from equity investments:

 

 

 

 

 

Hospitality Properties Trust

 

$

2,920

 

$

2,880

 

Senior Housing Properties Trust

 

2,467

 

2,771

 

 

 

$

5,387

 

$

5,651

 

 


(1)             In March 2006, we sold all 4,000,000 shares of Hospitality Properties Trust in an underwritten public offering for $179,000 ($175,269 net of commissions and other expenses) and we recognized a gain of $77,221, and we sold all 7,710,738 shares of Senior Housing Properties Trust in an underwritten public offering for $135,709 ($133,064 net of commissions and other expenses) and we recognized a gain of $39,066.

(2)             In December 2005, we sold 950,000 shares of Senior Housing Properties Trust in an underwritten public offering for $17,955 ($16,976 net of commissions and other expenses) and we recognized a gain of $5,522.

20




HRPT Properties Trust
 Supplemental Operating and Financial Data
 March 31, 2006

DEBT SUMMARY


(dollars in thousands)

 

 

Coupon

 

Interest

 

Principal

 

Maturity

 

Due at

 

Years to

 

 

 

Rate

 

Rate (1)

 

Balance

 

Date

 

Maturity

 

Maturity

 

Secured Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured debt Six properties in Minneapolis, MN

 

7.020

%

7.020

%

$

16,245

 

2/1/2008

 

$

15,724

 

1.8

 

Secured debt Two properties in Richland, WA

 

8.000

%

8.000

%

5,114

 

11/15/2008

 

1,004

 

2.6

 

Secured debt One property in Buffalo, NY

 

5.170

%

5.170

%

4,255

 

1/1/2009

 

134

 

2.8

 

Secured debt See note (2)

 

6.814

%

7.842

%

245,059

 

1/31/2011

 

225,547

 

4.8

 

Secured debt One property in Bannockburn, IL

 

8.050

%

5.240

%

25,433

 

6/1/2012

 

22,719

 

6.2

 

Secured debt Two properties in Rochester, NY

 

6.000

%

6.000

%

5,438

 

10/11/2012

 

4,507

 

6.5

 

Secured debt One property in Syracuse, NY

 

7.310

%

6.030

%

4,624

 

1/1/2022

 

 

15.8

 

Secured debt One property in Syracuse, NY

 

7.850

%

6.030

%

2,246

 

1/1/2022

 

 

15.8

 

Secured debt 23 properties in Atlanta, GA (3)

 

8.500

%

5.070

%

29,298

 

4/11/2028

 

4,937

 

22.0

 

Secured debt One property in Philadelphia, PA (4)

 

6.794

%

7.383

%

42,522

 

1/1/2029

 

2,478

 

22.8

 

Total / weighted average secured fixed rate debt

 

7.031

%

7.281

%

$

380,234

 

 

 

$

277,050

 

8.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving credit facility (LIBOR + 65 bps) (5)

 

5.210

%

5.210

%

$

193,000

 

4/28/2009

 

$

193,000

 

3.1

 

Senior notes due 2011 (3-MONTH LIBOR + 60 bps) (6)

 

5.520

%

5.520

%

400,000

 

3/16/2011

 

400,000

 

5.0

 

Total / weighted average unsecured floating rate debt 

 

5.419

%

5.419

%

$

593,000

 

 

 

$

593,000

 

4.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior notes due 2010

 

8.875

%

9.000

%

$

30,000

 

8/1/2010

 

$

30,000

 

4.3

 

Senior notes due 2010

 

8.625

%

8.770

%

20,000

 

10/1/2010

 

20,000

 

4.5

 

Senior notes due 2012

 

6.950

%

7.179

%

200,000

 

4/1/2012

 

200,000

 

6.0

 

Senior notes due 2013

 

6.500

%

6.693

%

200,000

 

1/15/2013

 

200,000

 

6.8

 

Senior notes due 2014

 

5.750

%

5.828

%

250,000

 

2/15/2014

 

250,000

 

7.9

 

Senior notes due 2015

 

6.400

%

6.601

%

200,000

 

2/15/2015

 

200,000

 

8.9

 

Senior notes due 2015

 

5.750

%

5.790

%

250,000

 

11/1/2015

 

250,000

 

9.6

 

Senior notes due 2016

 

6.250

%

6.470

%

400,000

 

8/15/2016

 

400,000

 

10.4

 

Total / weighted average unsecured fixed rate debt 

 

6.312

%

6.473

%

$

1,550,000

 

 

 

$

1,550,000

 

8.4

 

Total / weighted average unsecured debt

 

6.065

%

6.181

%

$

2,143,000

 

 

 

$

2,143,000

 

7.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / weighted average secured fixed rate debt

 

7.031

%

7.281

%

$

380,234

 

 

 

$

277,050

 

8.3

 

Total / weighted average unsecured floating rate debt

 

5.419

%

5.419

%

593,000

 

 

 

593,000

 

4.3

 

Total / weighted average unsecured fixed rate debt

 

6.312

%

6.473

%

1,550,000

 

 

 

1,550,000

 

8.4

 

Total / weighted average debt

 

6.211

%

6.347

%

$

2,523,234

(7)

 

 

$

2,420,050

 

7.5

 

 


(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)             Eight properties in Austin, TX, one property in Philadelphia, PA, two properties in Los Angeles, CA and two properties in Washington, DC.

(3)             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.

(4)             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.

(5)             Interest rate is weighted average based on amounts outstanding during 2006. Interest rate on amounts outstanding at 3/31/06, is 5.3%.

(6)             These senior notes become prepayable, at par, on September 16, 2006.

(7)             Total debt as of 3/31/2006, net of unamortized premiums and discounts, equals $2,513,246.

21




HRPT Properties Trust
 Supplemental Operating and Financial Data
March 31, 2006

DEBT MATURITY SCHEDULE


(dollars in thousands)

 

 

Scheduled Principal Payments During Period

 

 

 

Year

 

Secured
Fixed Rate
Debt

 

Unsecured
Floating
Rate Debt

 

Unsecured
Fixed
Rate Debt

 

Total (1)

 

Weighted
Average
Interest Rate

 

2006

 

$

6,745

 

$

 

$

 

$

6,745

 

7.0

%

2007

 

9,168

 

 

 

9,168

 

6.9

%

2008

 

25,261

 

 

 

25,261

 

7.0

%

2009

 

6,699

 

193,000

 

 

199,699

 

5.3

%

2010

 

7,047

 

 

50,000

 

57,047

 

8.6

%

2011

 

228,568

 

400,000

 

 

628,568

 

6.0

%

2012

 

29,692

 

 

200,000

 

229,692

 

7.0

%

2013

 

2,288

 

 

200,000

 

202,288

 

6.5

%

2014

 

2,466

 

 

250,000

 

252,466

 

5.8

%

2015

 

2,658

 

 

450,000

 

452,658

 

6.0

%

2016 and thereafter

 

59,642

 

 

400,000

 

459,642

 

6.4

%

Total

 

$

380,234

 

$

593,000

 

$

1,550,000

 

$

2,523,234

 

6.2

%

Percent

 

15.1

%

23.5

%

61.4

%

100.0

%

 

 

 


(1)  Total debt as of 3/31/2006, net of unamortized premiums and discounts, equals $2,513,246.

22




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS


 

 

As of and For the Three Months Ended

 

 

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

6/30/2005

 

3/31/2005

 

Leverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

Total debt / total assets

 

46.9

%

47.3

%

45.3

%

46.1

%

44.7

%

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

 

44.8

%

46.7

%

44.8

%

45.7

%

44.7

%

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

 

44.8

%

45.1

%

43.1

%

43.9

%

42.8

%

Total debt / total market capitalization

 

46.2

%

48.4

%

42.7

%

43.4

%

42.6

%

Total debt / total book capitalization

 

48.4

%

48.8

%

46.8

%

47.6

%

45.8

%

Secured debt / total assets

 

7.1

%

7.0

%

6.7

%

8.7

%

9.1

%

Variable rate debt / total debt

 

23.6

%

24.0

%

29.8

%

25.4

%

19.9

%

Variable rate debt / total assets

 

11.1

%

11.4

%

13.5

%

11.7

%

8.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

EBITDA / interest expense

 

2.9x

 

3.0x

 

3.3x

 

3.2x

 

3.0

x

EBITDA / interet expense + preferred distributions

 

2.3x

 

2.3x

 

2.5x

 

2.4x

 

2.2

x

 

 

 

 

 

 

 

 

 

 

 

 

Public Debt Covenants (2):

 

 

 

 

 

 

 

 

 

 

 

Debt / adjusted total assets (maximum 60%)

 

43.6

%

44.1

%

42.2

%

43.1

%

41.9

%

Secured debt / adjusted total assets (maximum 40%)

 

6.6

%

6.6

%

6.3

%

8.1

%

8.5

%

Consolidated income available for debt service /debt service (minimum 1.5x)

 

3.0x

 

3.0x

 

3.2x

 

3.1x

 

3.2

x

Total unencumbered assets / unsecured debt (minimum 150% / 200%)

 

229.6

%

226.5

%

239.0

%

233.0

%

242.2

%

 


(1)             Gross book value of real estate assets is real estate properties, at cost, including purchase price allocations less impairment write-downs, if any.

(2)             Adjusted total assets and unencumbered assets includes original cost of real estate assets and excludes depreciation and amortization, accounts receivable and other intangible assets.  Consolidated income available for debt service is earnings from operations excluding interest expense, depreciation and amortization, taxes, and gains and losses on sales of assets, determined together with debt service on a pro forma basis for the four consecutive fiscal quarters most recently ended.

23




 

HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

TENANT IMPROVEMENTS, LEASING COSTS AND CAPITAL IMPROVEMENTS


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

 

 

For the Three Months Ended

 

 

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

6/30/2005

 

3/31/2005

 

Tenant improvements (TI)

 

$

15,168

 

$

23,436

 

$

27,829

 

$

21,315

 

$

11,657

 

Leasing costs (LC)

 

5,050

 

7,124

 

4,617

 

7,588

 

3,090

 

Total TI and LC

 

20,218

 

30,560

 

32,446

 

28,903

 

14,747

 

Recurring building improvements (1)

 

5,615

 

8,986

 

7,044

 

1,821

 

4,984

 

Development, redevelopment and other activities (2)

 

2,687

 

3,458

 

4,674

 

5,396

 

536

 

Total capital improvements, including TI and LC

 

$

28,520

 

$

43,004

 

$

44,164

 

$

36,120

 

$

20,267

 

 

 

 

 

 

 

 

 

 

 

 

 

Sq. ft. beginning of period

 

55,035

 

54,132

 

52,792

 

44,151

 

44,154

 

Sq. ft. end of period

 

56,835

 

55,035

 

54,132

 

52,792

 

44,151

 

Average sq. ft. during period

 

55,935

 

54,584

 

53,462

 

48,472

 

44,153

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring building improvements per average sq. ft. during period

 

$

0.10

 

$

0.16

 

$

0.13

 

$

0.04

 

$

0.11

 

 


(1)             Building improvements generally include recurring expenditures that are necessary to maintain the value of our properties.

(2)             Development, redevelopment and other activities generally include non-recurring expenditures that increase the value of our properties.

24




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

2006 ACQUISITIONS AND DISPOSITIONS INFORMATION


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

Acquisitions:

Date
Acquired

 

Location

 

Office/
Industrial

 

Number of
Properties

 

Sq. Ft.

 

Purchase
Price (1)

 

Purchase
Price (1)/
Sq. Ft.

 

Cap
Rate (2)

 

Weighted
Average
Remaining
Lease
Term (3)

 

Percent
Leased (4)

 

Major Tenant

 

Jan-06

 

Liverpool and Rochester, NY

 

Office

 

12

 

459

 

$

51,600

 

$

112.42

 

9.6

%

3.5

 

92.5

%

Element K Press, LLC

 

Mar-06

 

Dewitt, Fairport, Liverpool, Pittsford, Sherburne and Syracuse, NY

 

Office

 

23

 

1,368

 

150,000

 

109.65

 

8.8

%

6.4

 

87.8

%

Manning and
Napier Advisors, Inc.

 

 

 

Total / weighted average

 

 

 

35

 

1,827

 

$

201,600

 

$

110.34

 

9.0

%

5.8

 

88.9

%

 

 

 

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date

 

 

 

Office/

 

Number of

 

 

 

Sale

 

Original
Purchase

 

Sale
Price(1)/

 

Original
Purchase
Price(1)/

 

Sale Price
Multiple
of Original
Purchase

 

Book
Gain

 

Sold

 

Location

 

Industrial

 

Properties

 

Sq. Ft.

 

Price (1)

 

Price (1)

 

Sq. Ft.

 

Sq. Ft.

 

Price

 

on Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There were no dispositions during the three months ended March 31, 2006.

(1)             Represents the gross contract purchase or sale price and excludes closing costs and purchase price allocations.

(2)             Represents the ratio of the estimated current GAAP based annual rental income less property operating expenses to 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.

25

 




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

 

FINANCING ACTIVITIES


(amounts in thousands)

 

 

For the Three Months Ended

 

 

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

6/30/2005

 

3/31/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Transactions (1):

 

 

 

 

 

 

 

 

 

 

 

New debt raised

 

$

400,000

 

$

250,000

 

$

 

$

 

$

 

New debt assumed as part of acquisitions

 

7,532

 

29,274

 

 

 

 

Total new debt

 

407,532

 

279,274

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt retired

 

(350,000

)

 

(84,913

)

 

(100,000

)

Net debt

 

$

57,532

 

$

279,274

 

$

(84,913

)

$

 

$

(100,000

)

 

 

 

 

 

 

 

 

 

 

 

 

Equity Transactions:

 

 

 

 

 

 

 

 

 

 

 

New common shares issued

 

 

 

10,000

 

 

22,500

 

New common equity raised, net

 

$

 

$

 

$

124,957

 

$

 

$

259,017

 

 

 

 

 

 

 

 

 

 

 

 

 

New preferred shares issued

 

6,000

 

 

 

 

 

New preferred equity raised, net

 

145,015

 

 

 

 

 

Total new equity

 

$

145,015

 

$

 

$

124,957

 

$

 

$

259,017

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred equity retired

 

(200,000

)

 

 

 

 

Net equity

 

$

(54,985

)

$

 

$

124,957

 

$

 

$

259,017

 


(1) Excludes drawings and repayments on our revolving credit facility.

26




 

PORTFOLIO AND LEASING INFORMATION

27

 




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

PORTFOLIO SUMMARY BY PROPERTY TYPE, TENANT AND MAJOR MARKET (SQUARE FEET)


(sq. ft. in thousands)

 

 

Metro
Philadelphia, PA

 

Metro
Washington, DC

 

Oahu, HI

 

Metro
Boston, MA

 

Southern
California

 

Metro
Atlanta, GA

 

Metro
Austin, TX

 

Other
Markets

 

Total

 

Square Feet (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

5,447

 

2,645

 

 

2,737

 

1,444

 

2,128

 

1,490

 

17,111

 

33,002

 

Industrial

 

 

 

17,943

 

 

 

 

1,316

 

4,574

 

23,833

 

Total

 

5,447

 

2,645

 

17,943

 

2,737

 

1,444

 

2,128

 

2,806

 

21,685

 

56,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

4,596

 

892

 

158

 

523

 

331

 

 

185

 

4,800

 

11,485

 

Suburban

 

851

 

1,753

 

17,785

 

2,214

 

1,113

 

2,128

 

2,621

 

16,885

 

45,350

 

Total

 

5,447

 

2,645

 

17,943

 

2,737

 

1,444

 

2,128

 

2,806

 

21,685

 

56,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants (2)

 

11

 

1,372

 

 

211

 

509

 

668

 

15

 

2,695

 

5,481

 

Medical related tenants (2)

 

1,000

 

350

 

 

1,014

 

632

 

148

 

392

 

2,583

 

6,119

 

Land leases (2)

 

 

 

17,397

 

 

 

 

 

 

17,397

 

Other investment grade tenants (2)(3)

 

1,802

 

105

 

 

882

 

35

 

188

 

385

 

5,807

 

9,204

 

Other tenants (2)

 

2,172

 

697

 

7

 

544

 

235

 

856

 

1,756

 

8,635

 

14,902

 

Vacant

 

462

 

121

 

539

 

86

 

33

 

268

 

258

 

1,965

 

3,732

 

Total

 

5,447

 

2,645

 

17,943

 

2,737

 

1,444

 

2,128

 

2,806

 

21,685

 

56,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Major Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

17

%

8

%

0

%

8

%

4

%

6

%

5

%

52

%

100

%

Industrial

 

0

%

0

%

75

%

0

%

0

%

0

%

6

%

19

%

100

%

Total

 

9

%

5

%

31

%

5

%

3

%

4

%

5

%

38

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

40

%

8

%

1

%

4

%

3

%

0

%

2

%

42

%

100

%

Suburban

 

2

%

4

%

39

%

5

%

2

%

5

%

6

%

37

%

100

%

Total

 

9

%

5

%

31

%

5

%

3

%

4

%

5

%

38

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

0

%

25

%

0

%

4

%

9

%

12

%

0

%

50

%

100

%

Medical related tenants

 

16

%

6

%

0

%

17

%

10

%

2

%

6

%

43

%

100

%

Land leases

 

0

%

0

%

100

%

0

%

0

%

0

%

0

%

0

%

100

%

Other investment grade tenants (3)

 

20

%

1

%

0

%

10

%

0

%

2

%

4

%

63

%

100

%

Other tenants

 

14

%

5

%

0

%

4

%

2

%

6

%

12

%

57

%

100

%

Vacant

 

12

%

3

%

14

%

2

%

1

%

7

%

7

%

54

%

100

%

Total

 

9

%

5

%

31

%

5

%

3

%

4

%

5

%

38

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Property Type and Tenant:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

100

%

100

%

0

%

100

%

100

%

100

%

53

%

79

%

58

%

Industrial

 

0

%

0

%

100

%

0

%

0

%

0

%

47

%

21

%

42

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

84

%

34

%

1

%

19

%

23

%

0

%

7

%

22

%

20

%

Suburban

 

16

%

66

%

99

%

81

%

77

%

100

%

93

%

78

%

80

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

0

%

52

%

0

%

8

%

35

%

31

%

1

%

12

%

10

%

Medical related tenants

 

18

%

13

%

0

%

37

%

44

%

7

%

14

%

12

%

11

%

Land leases

 

0

%

0

%

97

%

0

%

0

%

0

%

0

%

0

%

31

%

Other investment grade tenants (3)

 

33

%

4

%

0

%

32

%

3

%

9

%

14

%

27

%

16

%

Other tenants

 

40

%

26

%

0

%

20

%

16

%

40

%

63

%

40

%

26

%

Vacant

 

9

%

5

%

3

%

3

%

2

%

13

%

8

%

9

%

6

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%


(1) Excludes properties classified in discontinued operations.

(2) Sq. ft. is pursuant to signed leases as of 3/31/2006, and includes (i) space being fitted out for occupancy and (ii) space which is leased, but is not occupied or is being offered for sublease.

(3) Excludes investment grade tenants included above.

 

We define our major markets as markets which constitute 5% or more of our leaseable square feet, rental income or NOI. 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
March 31, 2006

PORTFOLIO SUMMARY BY PROPERTY TYPE, TENANT AND MAJOR MARKET
(ANNUALIZED RENTAL INCOME)

(dollars in thousands)

 

 

Metro
Philadelphia,
PA

 

Metro
Washington,
 DC

 

Oahu, HI

 

Metro
Boston, MA

 

Southern
California

 

Metro
Atlanta, GA

 

Metro
Austin, TX

 

Other
Markets

 

Total

 

Annualized Rental Income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

$

125,100

 

$

78,007

 

$

 

$

60,357

 

$

47,951

 

$

36,240

 

$

27,287

 

$

297,726

 

$

672,668

 

Industrial

 

 

 

57,944

 

 

 

 

15,443

 

39,177

 

112,564

 

Total

 

$

125,100

 

$

78,007

 

$

57,944

 

$

60,357

 

$

47,951

 

$

36,240

 

$

42,730

 

$

336,903

 

$

785,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

$

114,432

 

$

34,980

 

$

1,116

 

$

19,334

 

$

21,191

 

$

 

$

4,742

 

$

86,081

 

$

281,876

 

Suburban

 

10,668

 

43,027

 

56,828

 

41,023

 

26,760

 

36,240

 

37,988

 

250,822

 

503,356

 

Total

 

$

125,100

 

$

78,007

 

$

57,944

 

$

60,357

 

$

47,951

 

$

36,240

 

$

42,730

 

$

336,903

 

$

785,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

$

234

 

$

40,202

 

$

 

$

4,979

 

$

10,335

 

$

14,000

 

$

227

 

$

47,707

 

$

117,684

 

Medical related tenants

 

20,871

 

12,791

 

 

21,154

 

31,316

 

3,146

 

9,783

 

48,273

 

147,334

 

Land leases

 

 

 

57,794

 

 

 

 

 

 

57,794

 

Other investment grade tenants (2) 

 

47,329

 

4,095

 

 

17,041

 

996

 

2,973

 

5,532

 

104,202

 

182,168

 

Other tenants 

 

56,666

 

20,919

 

150

 

17,183

 

5,304

 

16,121

 

27,188

 

136,721

 

280,252

 

Total

 

$

125,100

 

$

78,007

 

$

57,944

 

$

60,357

 

$

47,951

 

$

36,240

 

$

42,730

 

$

336,903

 

$

785,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Major Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

19

%

12

%

0

%

9

%

7

%

5

%

4

%

44

%

100

%

Industrial

 

0

%

0

%

51

%

0

%

0

%

0

%

14

%

35

%

100

%

Total

 

16

%

10

%

7

%

8

%

6

%

5

%

5

%

43

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

41

%

12

%

0

%

7

%

8

%

0

%

2

%

30

%

100

%

Suburban

 

2

%

9

%

11

%

8

%

5

%

7

%

8

%

50

%

100

%

Total

 

16

%

10

%

7

%

8

%

6

%

5

%

5

%

43

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

0

%

34

%

0

%

4

%

9

%

12

%

0

%

41

%

100

%

Medical related tenants

 

14

%

9

%

0

%

14

%

21

%

2

%

7

%

33

%

100

%

Land leases

 

0

%

0

%

100

%

0

%

0

%

0

%

0

%

0

%

100

%

Other investment grade tenants (2) 

 

26

%

2

%

0

%

9

%

1

%

2

%

3

%

57

%

100

%

Other tenants 

 

20

%

7

%

0

%

6

%

2

%

6

%

10

%

49

%

100

%

Total

 

16

%

10

%

7

%

8

%

6

%

5

%

5

%

43

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Property Type and Tenant:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

100

%

100

%

0

%

100

%

100

%

100

%

64

%

88

%

86

%

Industrial

 

0

%

0

%

100

%

0

%

0

%

0

%

36

%

12

%

14

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

91

%

45

%

2

%

32

%

44

%

0

%

11

%

26

%

36

%

Suburban

 

9

%

55

%

98

%

68

%

56

%

100

%

89

%

74

%

64

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

0

%

52

%

0

%

8

%

22

%

39

%

1

%

14

%

15

%

Medical related tenants

 

17

%

16

%

0

%

35

%

65

%

9

%

23

%

14

%

19

%

Land leases

 

0

%

0

%

100

%

0

%

0

%

0

%

0

%

0

%

7

%

Other investment grade tenants (2) 

 

38

%

5

%

0

%

28

%

2

%

8

%

13

%

31

%

23

%

Other tenants 

 

45

%

27

%

0

%

29

%

11

%

44

%

63

%

41

%

36

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

(1)             Annualized rental income is rents pursuant to signed leases as of 3/31/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization. Excludes rents from properties classified in discontinued operations.

(2)             Excludes investment grade tenants included above.

We define our major markets as markets which constitute 5% or more of our leaseable square feet, rental income or NOI.  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.

29




 

HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

SUMMARY OF PROPERTIES BY MAJOR MARKET


(sq. ft. in thousands)

 

As of 3/31/2006

 

Annualized

 

% of Annualized

 

 Market

 

Properties

 

Sq. Ft.

 

% Sq. Ft.

 

Rental Income (1)

 

Rental Income (1)

 

Metro Philadelphia, PA

 

21

 

5,447

 

9.6

%

$

125,100

 

15.9

%

Metro Washington, DC

 

20

 

2,645

 

4.7

%

78,007

 

9.9

%

Oahu, HI

 

55

 

17,943

 

31.6

%

57,944

 

7.4

%

Metro Boston, MA

 

36

 

2,737

 

4.8

%

60,357

 

7.7

%

Southern California

 

24

 

1,444

 

2.5

%

47,951

 

6.1

%

Metro Atlanta, GA

 

41

 

2,128

 

3.7

%

36,240

 

4.6

%

Metro Austin, TX

 

26

 

2,806

 

4.9

%

42,730

 

5.4

%

Other markets

 

251

 

21,685

 

38.2

%

336,903

 

43.0

%

Total

 

474

 

56,835

 

100.0

%

$

785,232

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent NOI For the Three Months Ended (2)

 

 

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

6/30/2005

 

3/31/2005

 

Metro Philadelphia, PA

 

14.3

%

15.5

%

16.4

%

18.7

%

15.6

%

Metro Washington, DC

 

10.6

%

11.6

%

11.1

%

11.2

%

11.9

%

Oahu, HI

 

9.7

%

10.8

%

10.1

%

8.3

%

8.4

%

Metro Boston, MA

 

8.5

%

8.6

%

8.8

%

8.8

%

9.2

%

Southern California

 

7.1

%

7.4

%

7.6

%

6.9

%

7.6

%

Metro Atlanta, GA

 

4.7

%

4.8

%

4.8

%

4.9

%

5.2

%

Metro Austin, TX

 

4.4

%

4.0

%

3.8

%

4.1

%

4.6

%

Other markets

 

40.7

%

37.3

%

37.4

%

37.1

%

37.5

%

Total

 

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%


(1)             Annualized rental income is rents pursuant to signed leases as of 3/31/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.  Excludes rents from properties classified in discontinued operations.

(2)             NOI, or property net operating income, is defined as property rental income less property operating expenses; see page 14 for calculation of NOI and reconciliation of NOI to Net Income Available for Common Shareholders.  NOI for the three months ended 3/31/2006 excludes properties classified in discontinued operations; prior periods reflect amounts previously reported and excludes retroactive adjustments for properties reclassified to discontinued operations in the current period.

We define our major markets as markets which constitute 5% or more of our leaseable square feet, rental income or NOI. 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.

30




HRPT Properties Trust
 Supplemental Operating and Financial Data
 March 31, 2006

LEASING SUMMARY


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

 

 

 

As of and For the Three Months Ended(1)

 

 

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

6/30/2005

 

3/31/2005

 

Properties

 

474

 

442

 

434

 

415

 

375

 

Total sq. ft. (2)

 

56,835

 

55,035

 

54,132

 

52,792

 

44,151

 

Percentage leased

 

93.4

%

94.3

%

93.9

%

94.1

%

93.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Leasing Activity (sq. ft.):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

606

 

538

 

512

 

573

 

677

 

Renewals

 

1,160

 

774

 

404

 

726

 

829

 

Total

 

1,766

 

1,312

 

916

 

1,299

 

1,506

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change in GAAP Rent (3):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

-4

%

-2

%

-6

%

12

%

-4

%

Renewals

 

4

%

13

%

-4

%

0

%

-16

%

Weighted average by sq. ft.

 

2

%

5

%

-5

%

5

%

-11

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments (4):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

8,966

 

$

9,681

 

$

10,384

 

$

12,658

 

$

14,867

 

Renewals

 

9,944

 

3,738

 

2,834

 

2,589

 

12,377

 

Total

 

$

18,910

 

$

13,419

 

$

13,218

 

$

15,247

 

$

27,244

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments per Sq. Ft. (4):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

14.80

 

$

17.99

 

$

20.28

 

$

22.09

 

$

21.96

 

Renewals

 

$

8.57

 

$

4.83

 

$

7.01

 

$

3.57

 

$

14.93

 

Total

 

$

10.71

 

$

10.23

 

$

14.43

 

$

11.74

 

$

18.09

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

New leases

 

6.9

 

7.3

 

6.3

 

7.4

 

5.5

 

Renewals

 

11.7

 

11.4

 

5.5

 

3.1

 

6.7

 

Total

 

10.3

 

9.4

 

5.9

 

4.9

 

6.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments per Sq. Ft. per Year:

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

2.14

 

$

2.46

 

$

3.22

 

$

2.99

 

$

3.99

 

Renewals

 

$

0.73

 

$

0.42

 

$

1.28

 

$

1.15

 

$

2.23

 

Total

 

$

1.04

 

$

1.09

 

$

2.45

 

$

2.40

 

$

2.92

 


(1)             Results as of and for the three months ended 3/31/2006 excludes properties classified in discontinued operations; prior periods reflect amounts previously reported and excludes retroactive adjustments for properties reclassified to discontinued operations in the current period.

(2)             Sq. ft. measurements are subject to modest changes when space is re-measured or re-configured for new tenants.

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

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

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

 

31




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

OCCUPANCY AND LEASING ANALYSIS BY PROPERTY TYPE AND MAJOR MARKET
(3 MONTHS ENDED 3/31/2006)


(dollars and sq. ft. in thousands)

 

 

 

 

Sq. Ft. Leases Executed DuringThree Months Ended 3/31/2006 (1)

 

Property Type/Market

 

Total Sq. Ft.
As of
3/31/2006 (1)

 

New

 

Renewals

 

Total

 

Office

 

33,002

 

333

 

943

 

1,276

 

Industrial

 

23,833

 

273

 

217

 

490

 

Total

 

56,835

 

606

 

1,160

 

1,766

 

 

 

 

 

 

 

 

 

 

 

CBD

 

11,485

 

112

 

522

 

634

 

Suburban

 

45,350

 

494

 

638

 

1,132

 

Total

 

56,835

 

606

 

1,160

 

1,766

 

 

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

5,447

 

40

 

394

 

434

 

Metro Washington, DC

 

2,645

 

21

 

74

 

95

 

Oahu, HI

 

17,943

 

231

 

160

 

391

 

Metro Boston, MA

 

2,737

 

76

 

317

 

393

 

Southern California

 

1,444

 

8

 

15

 

23

 

Metro Atlanta, GA

 

2,128

 

43

 

45

 

88

 

Metro Austin, TX

 

2,806

 

32

 

14

 

46

 

Other markets

 

21,685

 

155

 

141

 

296

 

Total

 

56,835

 

606

 

1,160

 

1,766

 

 

 

 

 

Sq. Ft. Leased

 

 

 

As of
12/31/2005

 

12/31/2005
% Leased (2)

 

Expired

 

New and
Renewals

 

Acquisitions /
(Sales) (3)

 

As of
3/31/2006 (1)

 

3/31/2006
% Leased

 

Office

 

28,931

 

92.5

%

(1,525

)

1,276

 

1,545

 

30,227

 

91.6

%

Industrial

 

22,952

 

96.6

%

(566

)

490

 

 

22,876

 

96.0

%

Total

 

51,883

 

94.3

%

(2,091

)

1,766

 

1,545

 

53,103

 

93.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

10,698

 

92.9

%

(734

)

634

 

 

10,598

 

92.3

%

Suburban

 

41,185

 

94.6

%

(1,357

)

1,132

 

1,545

 

42,505

 

93.7

%

Total

 

51,883

 

94.3

%

(2,091

)

1,766

 

1,545

 

53,103

 

93.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

5,064

 

93.0

%

(513

)

434

 

 

4,985

 

91.5

%

Metro Washington, DC

 

2,538

 

95.9

%

(109

)

95

 

 

2,524

 

95.4

%

Oahu, HI

 

17,481

 

97.8

%

(468

)

391

 

 

17,404

 

97.0

%

Metro Boston, MA

 

2,654

 

97.0

%

(397

)

393

 

 

2,650

 

96.8

%

Southern California

 

1,414

 

97.9

%

(26

)

23

 

 

1,411

 

97.7

%

Metro Atlanta, GA

 

1,947

 

89.1

%

(107

)

88

 

(68

)

1,860

 

87.4

%

Metro Austin, TX

 

2,542

 

90.6

%

(39

)

46

 

 

2,549

 

90.8

%

Other markets

 

18,243

 

91.7

%

(432

)

296

 

1,613

 

19,720

 

90.9

%

Total

 

51,883

 

94.3

%

(2,091

)

1,766

 

1,545

 

53,103

 

93.4

%

 


(1)             Excludes sq. ft. from properties classified in discontinued operations.

(2)             Based on total sq. ft. as of December 31, 2005; excludes acquisitions and effects of space remeasurements during the period.

(3)             Includes properties classified in discontinued operations during the current period.

We define our major markets as markets which constitute 5% or more of our leaseable square feet, rental income or NOI. 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.

32




 

HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

 

TENANTS REPRESENTING 1% OR MORE OF TOTAL RENT


(sq. ft. in thousands)

 

 

 


Tenant

 

Sq. Ft. (1)

 

% of Total
Sq. Ft. (1)

 

% of Rental
Income (2)

 

Expiration

 

1

 

U.S. Government

 

5,017

 

9.4

%

13.9

%

2006 to 2020

 

2

 

GlaxoSmithKline plc

 

607

 

1.1

%

1.8

%

2013

 

3

 

PNC Financial Services Group

 

460

 

0.9

%

1.4

%

2021

 

4

 

Comcast Corporation

 

406

 

0.8

%

1.2

%

2006, 2008

 

5

 

Tyco International Ltd

 

660

 

1.2

%

1.2

%

2007, 2017

 

6

 

Solectron Corporation

 

765

 

1.4

%

1.2

%

2014

 

7

 

Towers, Perrin, Forster & Crosby, Inc

 

388

 

0.7

%

1.2

%

2006, 2011

 

8

 

Motorola, Inc.

 

770

 

1.5

%

1.1

%

2006, 2008, 2010

 

9

 

Manugistics, Inc.

 

283

 

0.5

%

1.1

%

2012

 

10

 

Ballard Spahr Andrews & Ingersoll, LLP

 

231

 

0.4

%

1.1

%

2008, 2015

 

11

 

Westinghouse Electric Corporation

 

534

 

1.0

%

1.0

%

2010, 2011

 

 

 

Total

 

10,121

 

18.9

%

26.2

%

 

 

 


(1)             Sq. ft. is pursuant to signed leases as of 3/31/2006, and includes (i) space being fitted out for occupancy and (ii) space which is leased, but is not occupied or is being offered for sublease. Excludes sq. ft. from properties classified in discontinued operations.

(2)             Rental income is rents pursuant to signed leases as of 3/31/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization. Excludes rents from properties classified in discontinued operations.

33




HRPT Properties Trust
 Supplemental Operating and Financial Data
 March 31, 2006

THREE YEAR LEASE EXPIRATION SCHEDULE BY PROPERTY TYPE


(dollars and sq. ft. in thousands)

 

 

Total as of 3/31/2006 (1)

 

2006

 

2007

 

2008

 

2009 and Thereafter

 

Office:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

33,002

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

30,227

 

2,748

 

2,872

 

3,132

 

21,475

 

Percent

 

100.0

%

9.1

%

9.5

%

10.4

%

71.0

%

Annualized rental income (3)

 

$672,668

 

$58,359

 

$65,709

 

$70,017

 

$478,583

 

Percent

 

100.0

%

8.7

%

9.8

%

10.4

%

71.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Industrial:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

23,833

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

22,876

 

641

 

1,094

 

1,291

 

19,850

 

Percent

 

100.0

%

2.8

%

4.8

%

5.6

%

86.8

%

Annualized rental income (3)

 

$112,564

 

$4,233

 

$7,929

 

$9,868

 

$90,534

 

Percent

 

100.0

%

3.8

%

7.0

%

8.8

%

80.4

%

 

 

 

 

 

 

 

 

 

 

 

 

CBD:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

11,485

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

10,598

 

765

 

904

 

1,253

 

7,676

 

Percent

 

100.0

%

7.2

%

8.5

%

11.8

%

72.5

%

Annualized rental income (3)

 

$281,876

 

$19,681

 

$24,786

 

$30,647

 

$206,762

 

Percent

 

100.0

%

7.0

%

8.8

%

10.9

%

73.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Suburban:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

45,350

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

42,505

 

2,624

 

3,062

 

3,170

 

33,649

 

Percent

 

100.0

%

6.2

%

7.2

%

7.5

%

79.1

%

Annualized rental income (3)

 

$503,356

 

$42,911

 

$48,852

 

$49,238

 

$362,355

 

Percent

 

100.0

%

8.5

%

9.7

%

9.8

%

72.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

56,835

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

53,103

 

3,389

 

3,966

 

4,423

 

41,325

 

Percent

 

100.0

%

6.4

%

7.5

%

8.3

%

77.8

%

Annualized rental income (3)

 

$785,232

 

$62,592

 

$73,638

 

$79,885

 

$569,117

 

Percent

 

100.0

%

8.0

%

9.4

%

10.2

%

72.4

%

 

(1)             Excludes sq. ft. and rents from properties classified in discontinued operations.

(2)             Sq. ft. is pursuant to signed leases as of 3/31/2006, and includes (i) space being fitted out for occupancy and (ii) space which is leased, but is not occupied or is being offered for sublease.

(3)             Annualized rental income is rents pursuant to signed leases as of 3/31/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

34




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

THREE YEAR LEASE EXPIRATION SCHEDULE BY MAJOR MARKET


(dollars and sq. ft. in thousands)

 

 

Total as of
3/31/2006 (1)

 

2006

 

2007

 

2008

 

2009 and
Thereafter

 

Metro Philadelphia, PA:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

5,447

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

4,985

 

247

 

275

 

665

 

3,798

 

Percent

 

100.0

%

5.0

%

5.5

%

13.3

%

76.2

%

Annualized rental income (3)

 

$

125,100

 

$

6,852

 

$

5,296

 

$

15,724

 

$

97,228

 

Percent

 

100.0

%

5.5

%

4.2

%

12.6

%

77.7

%

Metro Washington, DC:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,645

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

2,524

 

195

 

222

 

125

 

1,982

 

Percent

 

100.0

%

7.7

%

8.8

%

5.0

%

78.5

%

Annualized rental income (3)

 

$

78,007

 

$

5,399

 

$

6,824

 

$

3,769

 

$

62,015

 

Percent

 

100.0

%

6.9

%

8.7

%

4.8

%

79.6

%

Oahu, HI:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

17,943

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

17,404

 

125

 

448

 

495

 

16,336

 

Percent

 

100.0

%

0.7

%

2.6

%

2.8

%

93.9

%

Annualized rental income (3)

 

$

57,944

 

$

659

 

$

936

 

$

2,340

 

$

54,009

 

Percent

 

100.0

%

1.1

%

1.6

%

4.0

%

93.3

%

Metro Boston, MA

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,737

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

2,650

 

200

 

305

 

182

 

1,963

 

Percent

 

100.0

%

7.5

%

11.5

%

6.9

%

74.1

%

Annualized rental income (3)

 

$

60,357

 

$

5,153

 

$

8,370

 

$

5,270

 

$

41,564

 

Percent

 

100.0

%

8.5

%

13.9

%

8.7

%

68.9

%

Southern California:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

1,444

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

1,411

 

165

 

275

 

111

 

860

 

Percent

 

100.0

%

11.7

%

19.5

%

7.9

%

60.9

%

Annualized rental income (3)

 

$

47,951

 

$

4,749

 

$

8,712

 

$

4,775

 

$

29,715

 

Percent

 

100.0

%

9.9

%

18.2

%

10.0

%

61.9

%

Metro Atlanta, GA:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,128

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

1,860

 

191

 

192

 

203

 

1,274

 

Percent

 

100.0

%

10.3

%

10.3

%

10.9

%

68.5

%

Annualized rental income (3)

 

$

36,240

 

$

4,018

 

$

3,977

 

$

3,864

 

$

24,381

 

Percent

 

100.0

%

11.1

%

11.0

%

10.7

%

67.2

%

Metro Austin, TX:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,806

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

2,549

 

62

 

532

 

157

 

1,798

 

Percent

 

100.0

%

2.4

%

20.9

%

6.2

%

70.5

%

Annualized rental income (3)

 

$

42,730

 

$

1,247

 

$

8,293

 

$

3,162

 

$

30,028

 

Percent

 

100.0

%

2.9

%

19.4

%

7.4

%

70.3

%

Other markets:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

21,685

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

19,720

 

2,204

 

1,717

 

2,485

 

13,314

 

Percent

 

100.0

%

11.2

%

8.7

%

12.6

%

67.5

%

Annualized rental income (3)

 

$

336,903

 

$

34,515

 

$

31,230

 

$

40,981

 

$

230,177

 

Percent

 

100.0

%

10.2

%

9.3

%

12.2

%

68.3

%

Total:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

56,835

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

53,103

 

3,389

 

3,966

 

4,423

 

41,325

 

Percent

 

100.0

%

6.4

%

7.5

%

8.3

%

77.8

%

Annualized rental income (3)

 

$

785,232

 

$

62,592

 

$

73,638

 

$

79,885

 

$

569,117

 

Percent

 

100.0

%

8.0

%

9.4

%

10.2

%

72.4

%


(1)             Excludes sq. ft. and rents from properties classified in discontinued operations.

(2)             Sq. ft. is pursuant to signed leases as of 3/31/2006, and includes (i) space being fitted out for occupancy and (ii) space which is leased, but is not occupied or is being offered for sublease.

(3)             Annualized rental income is rents pursuant to signed leases as of 3/31/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

We define our major markets as markets which constitute 5% or more of our leaseable square feet, rental income or NOI. 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.

35




HRPT Properties Trust
Supplemental Operating and Financial Data
March 31, 2006

PORTFOLIO LEASE EXPIRATION SCHEDULE


(dollars and sq. ft. in thousands)

 

 

Sq. Ft.
Expiring (1)

 

% of Sq. Ft.
Expiring

 

Annualized
Rental Income
Expiring (2)

 

% of Annualized
Rental Income
Expiring

 

Cummulative%
of Annualized
Rental Income
Expiring

 

2006

 

3,389

 

6.4

%

$

62,592

 

8.0

%

8.0

%

2007

 

3,966

 

7.5

%

73,638

 

9.4

%

17.4

%

2008

 

4,423

 

8.3

%

79,885

 

10.2

%

27.6

%

2009

 

3,648

 

6.9

%

64,086

 

8.2

%

35.8

%

2010

 

4,801

 

9.0

%

84,883

 

10.8

%

46.6

%

2011

 

4,693

 

8.8

%

83,047

 

10.6

%

57.2

%

2012

 

3,221

 

6.1

%

66,189

 

8.4

%

65.6

%

2013

 

1,883

 

3.5

%

34,738

 

4.4

%

70.0

%

2014

 

1,978

 

3.7

%

33,768

 

4.3

%

74.3

%

2015

 

2,480

 

4.7

%

53,118

 

6.8

%

81.1

%

2016 and thereafter

 

18,621

 

35.1

%

149,288

 

18.9

%

100.0

%

Total

 

53,103

 

100.0

%

$

785,232

 

100.0

%

 

 

Weighted average remaining lease term (in years)

 

9.7

 

 

 

6.6

 

 

 

 

 

 


(1)             Sq. ft. is pursuant to signed leases as of 3/31/2006, and includes (i) space being fitted out for occupancy and (ii) space which is leased, but is not occupied or is being offered for sublease. Excludes sq. ft. from properties classified in discontinued operations.

(2)             Annualized rental income is rents pursuant to signed leases as of 3/31/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization. Excludes rents from properties classified in discontinued operations.

36