EX-99.2 3 a06-17323_1ex99d2.htm EX-99

Exhibit 99.2

HRPT PROPERTIES TRUST

Second 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

2006 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 6/30/2006)

 

32

Occupancy and Leasing Analysis by Property Type and Major Market (6 Months Ended 6/30/2006)

 

33

Tenants Representing 1% or More of Total Rent

 

34

Three Year Lease Expiration Schedule by Property Type

 

35

Three Year Lease Expiration Schedule by Major Market

 

36

Portfolio Lease Expiration Schedule

 

37

 

2




 

WARNING REGARDING FORWARD LOOKING STATEMENTS

CERTAIN STATEMENTS AND IMPLICATIONS CONTAINED IN THIS SUPPLEMENTAL OPERATING AND FINANCIAL DATA REPORT FOR THE QUARTER AND SIX MONTHS ENDED JUNE 30, 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.  OTHER RISKS MAY ADVERSELY IMPACT US, AS DESCRIBED MORE FULLY UNDER "ITEM 1A. RISK FACTORS" IN OUR ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2005.  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
June 30, 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 June 30, 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 rents, 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 may 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.

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 June 30, 2006, RMR managed one of the largest portfolios of publicly owned real estate in the United States, including approximately 1,000 properties with approximately 90 million square feet located in 42 states, Washington, DC, Puerto Rico and Ontario, Canada.  RMR has over 450 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 five mutual funds which invest in unaffiliated real estate companies.  The public companies managed by RMR and its affiliates had combined total market capitalization of approximately $12.0 billion as of June 30, 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 6/30/06) (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

Total properties

 

 

 

 

 

487

Total sq. ft. (000s)

 

 

 

 

 

58,029

Percent leased

 

 

 

 

 

93.6%

 

Portfolio Concentration by Sq. Ft. (as of 6/30/06)  (1):

 

 

 

 

 

 

 

 

Office

 

Industrial

 

Total

CBD

 

19.5%

 

0.3%

 

19.8%

Suburban

 

38.9%

 

41.3%

 

80.2%

Total

 

58.4%

 

41.6%

 

100.0%

 

Portfolio Concentration by NOI (Q2 2006) (1) (2):

 

 

 

 

 

 

 

 

Office

 

Industrial

 

Total

CBD

 

33.4%

 

0.2%

 

33.6%

Suburban

 

49.6%

 

16.8%

 

66.4%

Total

 

83.0%

 

17.0%

 

100.0%

 

 

 

 

 

 

 

 

Portfolio Concentration by Major Market (1):

 

 

 

 

 

 

6/30/06

 

Q2 2006

 

 

Sq. Ft.

 

NOI (2)

Metro Philadelphia, PA

 

9.4%

 

14.1%

Metro Washington, DC

 

4.6%

 

10.1%

Oahu, HI

 

30.9%

 

10.2%

Metro Boston, MA

 

4.7%

 

8.2%

Southern California

 

2.5%

 

6.7%

Metro Atlanta, GA

 

3.7%

 

4.3%

Metro Austin, TX

 

4.8%

 

4.5%

Other Markets

 

39.4%

 

41.9%

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
June 30, 2006

INVESTOR INFORMATION

Board of Trustees

Barry M. Portnoy

 

Adam D. Portnoy

Managing Trustee

 

Managing Trustee

 

 

 

Patrick F. Donelan

 

Frederick N. Zeytoonjian

Independent Trustee

 

Independent Trustee

 

 

 

William A. Lamkin

 

 

Independent Trustee

 

 

 

 

 

 

 

 

 

 

 

Senior Management

 

 

 

John A. Mannix

 

David M. Lepore

President and Chief Operating Officer

 

Senior Vice President

 

 

 

John C. Popeo

 

Jennifer B. Clark

Treasurer, Chief Financial Officer and Secretary

 

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




 

HRPT Properties Trust
Supplemental Operating and Financial Data
June 30, 2006

RESEARCH COVERAGE

 

 

Equity Research Coverage

 

 

 

A.G. Edwards & Sons

 

RBC Capital Markets

Scott Sedlak

 

Sri Nagaragan

(314) 955-2883

 

(212) 428-2360

 

 

 

Cantor Fitzgerald

 

Smith Barney Citigroup

Philip Martin

 

Steve Benyik

(312) 469-7485

 

(212) 816-6445

 

 

 

Ferris, Baker Watts

 

Stifel, Nicolaus

Charles Place

 

John Guinee

(410) 659-4657

 

(410) 454-5520

 

 

 

Merrill Lynch

 

Wachovia Securities

Christopher Pike

 

Stephen Swett

(212) 449-1153

 

(212) 214-5050

 

 

 

Raymond James

 

 

Paul Puryear

 

 

(727) 573-3800

 

 

 

 

 

 

 

 

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




HRPT Properties Trust
Supplemental Operating and Financial Data
June 30, 2006

KEY FINANCIAL DATA

(amounts in thousands, except per share data)

 

 

As of and For the Three Months Ended

 

 

 

6/30/2006

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

6/30/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (at end of period)

 

209,986

 

209,861

 

209,861

 

209,861

 

199,821

 

Preferred shares outstanding (at end of period)

 

18,000

 

18,000

 

20,000

 

20,000

 

20,000

 

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

 

209,968

 

209,861

 

209,861

 

201,459

 

199,819

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

Price at end of period

 

$

11.56

 

$

11.74

 

$

10.35

 

$

12.41

 

$

12.43

 

High during period

 

$

11.80

 

$

12.09

 

$

12.51

 

$

13.25

 

$

12.60

 

Low during period

 

$

10.50

 

$

10.30

 

$

10.18

 

$

11.75

 

$

11.35

 

Annualized dividends paid per share

 

$

0.84

 

$

0.84

 

$

0.84

 

$

0.84

 

$

0.84

 

Annualized dividend yield (at end of period)

 

7.3

%

7.2

%

8.1

%

6.8

%

6.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Market Capitalization:

 

 

 

 

 

 

 

 

 

 

 

Total debt (book value)

 

$

2,611,077

 

$

2,513,246

 

$

2,520,156

 

$

2,333,543

 

$

2,310,524

 

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

 

458,220

 

467,940

 

514,240

 

523,880

 

533,600

 

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

 

2,427,438

 

2,463,768

 

2,172,061

 

2,604,375

 

2,483,775

 

Total market capitalization

 

$

5,496,735

 

$

5,444,954

 

$

5,206,457

 

$

5,461,798

 

$

5,327,899

 

Total debt / total market capitalization

 

47.5

%

46.2

%

48.4

%

42.7

%

43.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Book Capitalization:

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

$

2,611,077

 

$

2,513,246

 

$

2,520,156

 

$

2,333,543

 

$

2,310,524

 

Plus: total stockholders' equity

 

2,663,253

 

2,683,827

 

2,645,486

 

2,657,350

 

2,547,047

 

Total book capitalization

 

$

5,274,330

 

$

5,197,073

 

$

5,165,642

 

$

4,990,893

 

$

4,857,571

 

Total debt / total book capitalization

 

49.5

%

48.4

%

48.8

%

46.8

%

47.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,441,519

 

$

5,355,189

 

$

5,327,167

 

$

5,154,048

 

$

5,012,423

 

Total liabilities

 

$

2,778,266

 

$

2,671,362

 

$

2,681,681

 

$

2,496,698

 

$

2,465,376

 

Gross book value of real estate assets (2)

 

$

5,756,687

 

$

5,615,904

 

$

5,398,394

 

$

5,210,972

 

$

5,052,720

 

Equity investments in former subsidiaries (book value)

 

$

 

$

 

$

194,297

 

$

205,498

 

$

207,655

 

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

 

45.4

%

44.8

%

45.1

%

43.1

%

43.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Selected Income Statement Data (3):

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

197,957

 

$

189,559

 

$

186,066

 

$

183,372

 

$

174,289

 

EBITDA (4)

 

$

113,769

 

$

119,562

 

$

114,683

 

$

115,921

 

$

112,613

 

Property net operating income (NOI) (5)

 

$

121,998

 

$

117,756

 

$

112,328

 

$

114,005

 

$

110,369

 

NOI margin (6)

 

61.6

%

62.1

%

60.4

%

62.2

%

63.3

%

Net income

 

$

31,514

 

$

149,835

 

$

43,706

 

$

38,297

 

$

50,746

 

Preferred distributions

 

$

(9,234

)

$

(11,508

)

$

(11,500

)

$

(11,500

)

$

(11,500

)

Excess redemption price paid over carrying value of preferred shares

 

$

 

$

(6,914

)

$

 

$

 

$

 

Net income available for common shareholders

 

$

22,280

 

$

131,413

 

$

32,206

 

$

26,797

 

$

39,246

 

Funds from operations (FFO) (7)

 

$

71,915

 

$

76,248

 

$

74,055

 

$

76,438

 

$

76,338

 

FFO available for common shareholders (7)

 

$

62,681

 

$

64,740

 

$

62,555

 

$

64,938

 

$

64,838

 

Common distributions paid

 

$

44,095

 

$

44,071

 

$

44,070

 

$

41,963

 

$

41,961

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

0.11

 

$

0.63

 

$

0.15

 

$

0.13

 

$

0.20

 

FFO available for common shareholders (7)

 

$

0.30

 

$

0.31

 

$

0.30

 

$

0.32

 

$

0.32

 

Common distributions paid

 

$

0.21

 

$

0.21

 

$

0.21

 

$

0.21

 

$

0.21

 

FFO payout ratio

 

70.0

%

67.7

%

70.0

%

65.6

%

65.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

EBITDA (4) / interest expense

 

2.7x

 

2.9x

 

3.0x

 

3.3x

 

3.2x

 

EBITDA (4) / interest expense and preferred distributions

 

2.2x

 

2.3x

 

2.3x

 

2.5x

 

2.4x

 

 


(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 and 6/30/06 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

 June 30, 2006

 CONSOLIDATED BALANCE SHEETS

 (amounts in thousands, except share data)

 

 

As of
June 30,
2006

 

As of
December 31,
2005

 

 

 

 

 

(audited)

 

ASSETS

 

 

 

 

 

Real estate properties:

 

 

 

 

 

Land

 

$

1,112,110

 

$

1,080,563

 

Buildings and improvements

 

4,447,106

 

4,144,011

 

 

 

5,559,216

 

5,224,574

 

Accumulated depreciation

 

(607,832

)

(548,460

)

 

 

4,951,384

 

4,676,114

 

Properties held for sale

 

10,709

 

10,779

 

Acquired real estate leases

 

173,510

 

161,787

 

Equity investments in former subsidiaries

 

 

194,297

 

Cash and cash equivalents

 

35,099

 

19,445

 

Restricted cash

 

15,931

 

18,348

 

Rents receivable, net of allowance for doubtful accounts of $3,862 and $3,767, respectively

 

159,320

 

145,385

 

Other assets, net

 

95,566

 

101,012

 

Total assets

 

$

5,441,519

 

$

5,327,167

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Revolving credit facility

 

$

280,000

 

$

256,000

 

Senior unsecured debt, net

 

1,940,582

 

1,889,991

 

Mortgage notes payable, net

 

390,495

 

374,165

 

Accounts payable and accrued expenses

 

79,729

 

80,125

 

Acquired real estate lease obligations

 

44,300

 

38,987

 

Rent collected in advance

 

20,534

 

17,858

 

Security deposits

 

15,081

 

13,679

 

Due to affiliates

 

7,545

 

10,876

 

Total liabilities

 

2,778,266

 

2,681,681

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

Preferred shares of beneficial interest, $0.01 par value:

 

 

 

 

 

50,000,000 shares authorized;

 

 

 

 

 

Series A preferred shares; 97¤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; 83¤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; 71¤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; 209,985,540 and 209,860,625 shares issued and outstanding, respectively

 

2,100

 

2,099

 

Additional paid in capital

 

2,773,664

 

2,779,159

 

Cumulative net income

 

1,634,123

 

1,452,774

 

Cumulative common distributions

 

(1,982,984

)

(1,894,818

)

Cumulative preferred distributions

 

(198,514

)

(176,663

)

Total shareholders’ equity

 

2,663,253

 

2,645,486

 

Total liabilities and shareholders’ equity

 

$

5,441,519

 

$

5,327,167

 

 

10




HRPT Properties Trust
 Supplemental Operating and Financial Data
 June 30, 2006

 CONSOLIDATED STATEMENTS OF INCOME

 (amounts in thousands, except per share data)

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

 

6/30/2006

 

6/30/2005

 

6/30/2006

 

6/30/2005

 

 

Rental income(1)

 

$

197,957

 

$

173,814

 

$

387,516

 

$

340,368

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

75,959

 

63,735

 

147,762

 

126,842

 

 

Depreciation and amortization

 

40,379

 

33,416

 

78,045

 

65,927

 

 

General and administrative

 

8,540

 

7,453

 

16,413

 

14,328

 

 

Total expenses

 

124,878

 

104,604

 

242,220

 

207,097

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

73,079

 

69,210

 

145,296

 

133,271

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

310

 

701

 

1,545

 

881

 

 

Interest expense (including amortization of note discounts and premiums and deferred financing fees of $1,105, $668, $2,243 and $1,333, respectively)

 

(41,854

)

(34,732

)

(83,148

)

(70,339

)

 

Loss on early extinguishment of debt

 

 

 

(1,659

)

 

 

Equity in earnings of equity investments(2)

 

 

3,052

 

3,136

 

6,446

 

 

Gain on sale of equity investments(2)

 

 

 

116,287

 

 

 

Gain on issuance of shares by equity investees(2)

 

 

4,708

 

 

4,708

 

 

Income from continuing operations

 

31,535

 

42,939

 

181,457

 

74,967

 

 

(Loss) income from discontinued operations

 

(21

)

215

 

(108

)

422

 

 

Gain on sale of properties

 

 

7,592

 

 

7,592

 

 

Net income

 

31,514

 

50,746

 

181,349

 

82,981

 

 

Preferred distributions

 

(9,234

)

(11,500

)

(20,742

)

(23,000

)

 

Excess redemption price paid over carrying value of preferred shares(3)

 

 

 

(6,914

)

 

 

Net income available for common shareholders

 

$

22,280

 

$

39,246

 

$

153,693

 

$

59,981

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

209,968

 

199,819

 

209,915

 

189,873

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per common share:

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.11

 

$

0.16

 

$

0.73

 

$

0.27

 

 

(Loss) income from discontinued operations

 

$

 

$

 

$

 

$

 

 

Net income available for common shareholders

 

$

0.11

 

$

0.20

 

$

0.73

 

$

0.32

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional Data:

 

 

 

 

 

 

 

 

 

 

General and administrative expenses / rental income

 

4.31

%

4.29

%

4.24

%

4.21

%

 

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

 

0.16

%

0.15

%

0.30

%

0.29

%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

5,230

 

$

5,713

 

$

10,057

 

$

12,250

 

 

Lease value amortization (FAS 141)(1)

 

$

(2,293

)

$

(1,800

)

$

(5,482

)

$

(3,467

)

 

Lease termination fees included in rental income

 

$

251

 

$

285

 

$

500

 

$

435

 

 

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 former 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 the redemption.

11




 

HRPT Properties Trust
Supplemental Operating and Financial Data
 June 30, 2006

 

 CONSOLIDATED STATEMENTS OF CASH FLOWS

 (amounts in thousands)

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

 

6/30/2006

 

6/30/2005

 

6/30/2006

 

6/30/2005

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net income             

 

$

31,514

 

$

50,746

 

$

181,349

 

$

82,981

 

 

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

 

 

 

 

 

 

 

 

 

 

Depreciation          

 

32,594

 

27,692

 

63,297

 

54,878

 

 

Amortization of note discounts and premiums and deferred financing fees               

 

1,105

 

668

 

2,243

 

1,333

 

 

Amortization of acquired real estate leases

 

7,293

 

5,458

 

14,968

 

10,655

 

 

Other amortization     

 

2,809

 

2,239

 

5,371

 

4,244

 

 

Loss on early extinguishment of debt

 

 

 

1,659

 

 

 

Equity in earnings of equity investments

 

 

(3,052

)

(3,136

)

(6,446

)

 

Gain on sale of equity investments

 

 

 

(116,287

)

 

 

Gain on issuance of shares by equity investees

 

 

(4,708

)

 

(4,708

)

 

Distributions of earnings from equity investments

 

 

3,052

 

3,136

 

6,446

 

 

Gain on sale of properties                             

 

 

(7,592

)

 

(7,592

)

 

Change in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in restricted cash

 

(2,615

)

(2,444

)

2,417

 

(25

)

 

Decrease (increase) in rents receivable and other assets

 

5,598

 

339

 

(13,949

)

(29,121

)

 

Increase (decrease) in accounts payable and accrued expenses

 

12,651

 

29,651

 

(396

)

5,429

 

 

(Decrease) increase in rent collected in advance

 

(2,580

)

2,163

 

2,676

 

2,840

 

 

Increase in security deposits

 

504

 

828

 

1,402

 

941

 

 

(Decrease) increase in due to affiliates

 

(2,091

)

4,888

 

(3,331

)

(4,964

)

 

Cash provided by operating activities

 

86,782

 

109,928

 

141,419

 

116,891

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Real estate acquisitions and improvements

 

(117,765

)

(235,848

)

(339,290

)

(253,025

)

 

Distributions in excess of earnings from equity investments

 

 

2,600

 

2,251

 

4,857

 

 

Proceeds from sale of properties

 

 

20,078

 

 

20,078

 

 

Proceeds from sale of equity investments

 

 

 

308,333

 

 

 

Cash used for investing activities

 

(117,765

)

(213,170

)

(28,706

)

(228,090

)

 

 

 

 

 

 

 

 

 

 

 

 

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 

 

113,000

 

200,000

 

964,000

 

380,000

 

 

Payments on borrowings  

 

(28,494

)

(46,711

)

(894,210

)

(423,847

)

 

Deferred financing fees    

 

(503

)

 

(1,847

)

(4,813

)

 

Distributions to common shareholders

 

(44,095

)

(41,961

)

(88,166

)

(79,198

)

 

Distributions to preferred shareholders

 

(9,413

)

(11,500

)

(21,851

)

(23,000

)

 

Cash provided by (used for) financing activities

 

30,495

 

99,828

 

(97,059

)

108,159

 

 

 

 

 

 

 

 

 

 

 

 

 

(Decrease) increase in cash and cash equivalents

 

(488

)

(3,414

)

15,654

 

(3,040

)

 

Cash and cash equivalents at beginning of period

 

35,587

 

22,335

 

19,445

 

21,961

 

 

Cash and cash equivalents at end of period

 

$

35,099

 

$

18,921

 

$

35,099

 

$

18,921

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

 

Interest paid            

 

$

30,988

 

$

21,274

 

$

79,188

 

$

72,071

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

Real estate acquisitions    

 

$

(13,053

)

$

 

$

(20,585

)

$

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash financing activities:

 

 

 

 

 

 

 

 

 

 

Issuance of common shares 

 

$

1,420

 

$

53

 

$

1,420

 

$

53

 

 

Assumption of mortgage notes payable

 

13,053

 

 

20,585

 

 

 

 

12




 

HRPT Properties Trust
Supplemental Operating and Financial Data
June 30, 2006

CALCULATION OF EBITDA

(dollars in thousands)

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

6/30/2006

 

6/30/2005

 

6/30/2006

 

6/30/2005

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

31,514

 

$

50,746

 

$

181,349

 

$

82,981

 

Plus: interest expense

 

41,854

 

34,732

 

83,148

 

70,339

 

Plus: income taxes

 

 

 

 

 

Plus: depreciation and amortization

 

40,401

 

33,589

 

78,152

 

66,310

 

Plus: loss on early extinguishment of debt

 

 

 

1,659

 

 

Less: gain on sale of properties

 

 

(7,592

)

 

(7,592

)

Less: gain on sale of equity investments

 

 

 

(116,287

)

 

Less: gain on issuance of shares by equity investees

 

 

(4,708

)

 

(4,708

)

Less: equity in earnings of equity investments

 

 

(3,052

)

(3,136

)

(6,446

)

Plus: EBITDA from equity investments

 

 

8,898

 

8,446

 

17,668

 

EBITDA

 

$

113,769

 

$

112,613

 

$

233,331

 

$

218,552

 

 

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
June 30, 2006

CALCULATION AND RECONCILIATION OF PROPERTY NET OPERATING INCOME (NOI)

(dollars in thousands)

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

6/30/2006

 

6/30/2005

 

6/30/2006

 

6/30/2005

 

 

 

 

 

 

 

 

 

 

 

Calculation of NOI (1):

 

 

 

 

 

 

 

 

 

Rental income

 

$

197,957

 

$

173,814

 

$

387,516

 

$

340,368

 

Operating expenses

 

(75,959

)

(63,735

)

(147,762

)

(126,842

)

Property net operating income (NOI)

 

$

121,998

 

$

110,079

 

$

239,754

 

$

213,526

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of NOI to Net Income Available for Common Shareholders:

 

 

 

 

 

 

 

 

 

Property net operating income

 

$

121,998

 

$

110,079

 

$

239,754

 

$

213,526

 

Depreciation and amortization

 

(40,379

)

(33,416

)

(78,045

)

(65,927

)

General and administrative

 

(8,540

)

(7,453

)

(16,413

)

(14,328

)

Operating income

 

73,079

 

69,210

 

145,296

 

133,271

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

310

 

701

 

1,545

 

881

 

Interest expense

 

(41,854

)

(34,732

)

(83,148

)

(70,339

)

Loss on early extinguishment of debt

 

 

 

(1,659

)

 

Equity in earnings of equity investments

 

 

3,052

 

3,136

 

6,446

 

Gain on sale of equity investments

 

 

 

116,287

 

 

Gain on issuance of shares by equity investees

 

 

4,708

 

 

4,708

 

Income from continuing operations

 

31,535

 

42,939

 

181,457

 

74,967

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from discontinued operations

 

(21

)

215

 

(108

)

422

 

Gain on sale of properties

 

 

7,592

 

 

7,592

 

Net income

 

31,514

 

50,746

 

181,349

 

82,981

 

 

 

 

 

 

 

 

 

 

 

Preferred distributions

 

(9,234

)

(11,500

)

(20,742

)

(23,000

)

Excess redemption price paid over carrying value of preferred shares

 

 

 

(6,914

)

 

Net income available for common shareholders

 

$

22,280

 

$

39,246

 

$

153,693

 

$

59,981

 

 


(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
June 30, 2006

CALCULATION OF FUNDS FROM OPERATIONS (FFO)

(amounts in thousands, except per share data)

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

6/30/2006

 

6/30/2005

 

6/30/2006

 

6/30/2005

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

31,514

 

$

50,746

 

$

181,349

 

$

82,981

 

Plus: depreciation and amortization

 

40,401

 

33,589

 

78,152

 

66,310

 

Loss on early extinguishment of debt:

 

 

 

 

 

 

 

 

 

Add: amount included in expenses

 

 

 

1,659

 

 

Less: portion settled in cash

 

 

 

 

 

Less: gain on sale of properties

 

 

(7,592

)

 

(7,592

)

Less: gain on sale of equity investments

 

 

 

(116,287

)

 

Less: gain on issuance of shares by equity investees

 

 

(4,708

)

 

(4,708

)

Less: equity in earnings of equity investments

 

 

(3,052

)

(3,136

)

(6,446

)

Plus: FFO from equity investments

 

 

7,355

 

6,426

 

14,036

 

FFO

 

71,915

 

76,338

 

148,163

 

144,581

 

Less: preferred distributions

 

(9,234

)

(11,500

)

(20,742

)

(23,000

)

FFO available for common shareholders

 

$

62,681

 

$

64,838

 

$

127,421

 

$

121,581

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

209,968

 

199,819

 

209,915

 

189,873

 

 

 

 

 

 

 

 

 

 

 

FFO available for common shareholders per share

 

$

0.30

 

$

0.32

 

$

0.61

 

$

0.64

 

 

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
June 30, 2006

SUMMARY RESULTS OF OPERATIONS BY PROPERTY TYPE

(dollars and sq. ft. in thousands)

 

 

As of and For the Three Months Ended (1)

 

As of and For the Six Months Ended (1)

 

 

 

6/30/2006

 

6/30/2005

 

6/30/2006

 

6/30/2005

 

 

 

 

 

 

 

 

 

 

 

Number of Properties:

 

 

 

 

 

 

 

 

 

Office

 

348

 

275

 

348

 

275

 

Industrial

 

139

 

135

 

139

 

135

 

Total

 

487

 

410

 

487

 

410

 

 

 

 

 

 

 

 

 

 

 

CBD

 

50

 

50

 

50

 

50

 

Suburban

 

437

 

360

 

437

 

360

 

Total

 

487

 

410

 

487

 

410

 

 

 

 

 

 

 

 

 

 

 

Square Feet (2):

 

 

 

 

 

 

 

 

 

Office

 

33,902

 

28,922

 

33,902

 

28,922

 

Industrial

 

24,127

 

23,768

 

24,127

 

23,768

 

Total

 

58,029

 

52,690

 

58,029

 

52,690

 

 

 

 

 

 

 

 

 

 

 

CBD

 

11,486

 

11,487

 

11,486

 

11,487

 

Suburban

 

46,543

 

41,203

 

46,543

 

41,203

 

Total

 

58,029

 

52,690

 

58,029

 

52,690

 

 

 

 

 

 

 

 

 

 

 

Percent Leased (3):

 

 

 

 

 

 

 

 

 

Office

 

91.5%

 

92.2%

 

91.5%

 

92.2

%

Industrial

 

96.5%

 

96.3%

 

96.5%

 

96.3

%

Total

 

93.6%

 

94.1%

 

93.6%

 

94.1

%

 

 

 

 

 

 

 

 

 

 

CBD

 

92.4%

 

94.0%

 

92.4%

 

94.0%

 

Suburban

 

93.9%

 

94.1%

 

93.9%

 

94.1%

 

Total

 

93.6%

 

94.1%

 

93.6%

 

94.1%

 

 

 

 

 

 

 

 

 

 

 

Rental Income (4):

 

 

 

 

 

 

 

 

 

Office

 

$

168,972

 

$

148,716

 

$

331,688

 

$

290,719

 

Industrial

 

28,985

 

25,098

 

55,828

 

49,649

 

Total

 

$

197,957

 

$

173,814

 

$

387,516

 

$

340,368

 

 

 

 

 

 

 

 

 

 

 

CBD

 

$

71,756

 

$

69,844

 

$

143,136

 

$

136,045

 

Suburban

 

126,201

 

103,970

 

244,380

 

204,323

 

Total

 

$

197,957

 

$

173,814

 

$

387,516

 

$

340,368

 

 

 

 

 

 

 

 

 

 

 

Property Net Operating Income (NOI) (5):

 

 

 

 

 

 

 

 

 

Office

 

$

100,917

 

$

92,036

 

$

199,091

 

$

178,815

 

Industrial

 

21,081

 

18,043

 

40,663

 

34,711

 

Total

 

$

121,998

 

$

110,079

 

$

239,754

 

$

213,526

 

 

 

 

 

 

 

 

 

 

 

CBD

 

$

40,477

 

$

40,561

 

$

80,506

 

$

78,526

 

Suburban

 

81,521

 

69,518

 

159,248

 

135,000

 

Total

 

$

121,998

 

$

110,079

 

$

239,754

 

$

213,526

 

 

 

 

 

 

 

 

 

 

 

NOI Margin (6):

 

 

 

 

 

 

 

 

 

Office

 

59.7%

 

61.9%

 

60.0%

 

61.5%

 

Industrial

 

72.7%

 

71.9%

 

72.8%

 

69.9%

 

Total

 

61.6%

 

63.3%

 

61.9%

 

62.7%

 

 

 

 

 

 

 

 

 

 

 

CBD

 

56.4%

 

58.1%

 

56.2%

 

57.7%

 

Suburban

 

64.6%

 

66.9%

 

65.2%

 

66.1%

 

Total

 

61.6%

 

63.3%

 

61.9%

 

62.7%

 

 


(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
June 30, 2006

SUMMARY RESULTS OF OPERATIONS BY MAJOR MARKET
(dollars and sq. ft. in thousands)

 

 

As of and For the Three Months Ended (1)

 

As of and For the Six Months Ended (1)

 

 

 

6/30/2006

 

6/30/2005

 

6/30/2006

 

6/30/2005

 

Number of Properties:

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

21

 

21

 

21

 

21

 

Metro Washington, DC

 

20

 

20

 

20

 

20

 

Oahu, HI

 

56

 

53

 

56

 

53

 

Metro Boston, MA

 

36

 

36

 

36

 

36

 

Southern California

 

24

 

24

 

24

 

24

 

Metro Atlanta, GA

 

41

 

32

 

41

 

32

 

Metro Austin, TX

 

26

 

26

 

26

 

26

 

Other markets

 

263

 

198

 

263

 

198

 

Total

 

487

 

410

 

487

 

410

 

 

 

 

 

 

 

 

 

 

 

Square Feet (2):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

5,448

 

5,453

 

5,448

 

5,453

 

Metro Washington, DC

 

2,645

 

2,645

 

2,645

 

2,645

 

Oahu, HI

 

17,929

 

17,879

 

17,929

 

17,879

 

Metro Boston, MA

 

2,737

 

2,738

 

2,737

 

2,738

 

Southern California

 

1,444

 

1,444

 

1,444

 

1,444

 

Metro Atlanta, GA

 

2,127

 

1,777

 

2,127

 

1,777

 

Metro Austin, TX

 

2,807

 

2,805

 

2,807

 

2,805

 

Other markets

 

22,892

 

17,949

 

22,892

 

17,949

 

Total

 

58,029

 

52,690

 

58,029

 

52,690

 

 

 

 

 

 

 

 

 

 

 

Percent Leased (3):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

90.8%

 

93.3%

 

90.8%

 

93.3%

 

Metro Washington, DC

 

96.6%

 

95.1%

 

96.6%

 

95.1%

 

Oahu, HI

 

97.3%

 

97.4%

 

97.3%

 

97.4%

 

Metro Boston, MA

 

96.8%

 

96.8%

 

96.8%

 

96.8%

 

Southern California

 

97.9%

 

97.5%

 

97.9%

 

97.5%

 

Metro Atlanta, GA

 

87.8%

 

91.6%

 

87.8%

 

91.6%

 

Metro Austin, TX

 

92.4%

 

85.3%

 

92.4%

 

85.3%

 

Other markets

 

91.0%

 

91.8%

 

91.0%

 

91.8%

 

Total

 

93.6%

 

94.1%

 

93.6%

 

94.1%

 

 

 

 

 

 

 

 

 

 

 

Rental Income (4):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

$

31,632

 

$

35,772

 

$

63,493

 

$

66,729

 

Metro Washington, DC

 

19,495

 

19,131

 

39,210

 

37,720

 

Oahu, HI

 

15,119

 

11,340

 

29,211

 

22,262

 

Metro Boston, MA

 

14,996

 

14,015

 

30,028

 

28,064

 

Southern California

 

11,879

 

11,546

 

23,804

 

23,068

 

Metro Atlanta, GA

 

8,807

 

8,072

 

17,643

 

16,025

 

Metro Austin, TX

 

10,862

 

9,749

 

20,953

 

19,472

 

Other markets

 

85,167

 

64,189

 

163,174

 

127,028

 

Total

 

$

197,957

 

$

173,814

 

$

387,516

 

$

340,368

 

 

 

 

 

 

 

 

 

 

 

Property Net Operating Income (NOI) (5):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

$

17,216

 

$

20,625

 

$

34,072

 

$

36,867

 

Metro Washington, DC

 

12,266

 

12,308

 

24,735

 

24,648

 

Oahu, HI

 

12,386

 

9,164

 

23,758

 

17,863

 

Metro Boston, MA

 

10,032

 

9,720

 

20,004

 

19,194

 

Southern California

 

8,173

 

7,603

 

16,562

 

15,463

 

Metro Atlanta, GA

 

5,275

 

5,148

 

10,830

 

10,318

 

Metro Austin, TX

 

5,469

 

4,544

 

10,610

 

9,302

 

Other markets

 

51,181

 

40,967

 

99,183

 

79,871

 

Total

 

$

121,998

 

$

110,079

 

$

239,754

 

$

213,526

 

 

 

 

 

 

 

 

 

 

 

NOI Margin (6):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

54.4%

 

57.7%

 

53.7%

 

55.2%

 

Metro Washington, DC

 

62.9%

 

64.3%

 

63.1%

 

65.3%

 

Oahu, HI

 

81.9%

 

80.8%

 

81.3%

 

80.2%

 

Metro Boston, MA

 

66.9%

 

69.4%

 

66.6%

 

68.4%

 

Southern California

 

68.8%

 

65.8%

 

69.6%

 

67.0%

 

Metro Atlanta, GA

 

59.9%

 

63.8%

 

61.4%

 

64.4%

 

Metro Austin, TX

 

50.3%

 

46.6%

 

50.6%

 

47.8%

 

Other markets

 

60.1%

 

63.8%

 

60.8%

 

62.9%

 

Total

 

61.6%

 

63.3%

 

61.9%

 

62.7%

 

 


(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 currently, or during either of the last two quarters, 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
June 30, 2006

SAME PROPERTY RESULTS AND ANALYSIS BY PROPERTY TYPE
(dollars and sq. ft. in thousands)

 

 

 

As of and For the Three Months Ended (1)

 

As of and For the Six Months Ended (2)

 

 

 

6/30/2006

 

6/30/2005

 

6/30/2006

 

6/30/2005

 

Office:

 

 

 

 

 

 

 

 

 

Properties

 

273

 

273

 

273

 

273

 

Total sq. ft.

 

28,228

 

28,228

 

28,228

 

28,228

 

Percent leased (3)

 

91.9%

 

92.1%

 

91.9%

 

92.1%

 

Rental income (4)

 

$

145,948

 

$

146,827

 

$

292,908

 

$

288,830

 

Property net operating income (NOI) (5)

 

$

86,989

 

$

90,856

 

$

175,492

 

$

177,635

 

NOI % growth

 

-4.3%

 

 

 

-1.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial:

 

 

 

 

 

 

 

 

 

Properties

 

94

 

94

 

94

 

94

 

Total sq. ft.

 

15,517

 

15,517

 

15,517

 

15,517

 

Percent leased (3)

 

97.2%

 

97.4%

 

97.2%

 

97.4%

 

Rental income (4)

 

$

25,798

 

$

24,730

 

$

49,938

 

$

49,281

 

Property net operating income (NOI) (5)

 

$

18,404

 

$

17,725

 

$

35,753

 

$

34,394

 

NOI % growth

 

3.8%

 

 

 

4.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD:

 

 

 

 

 

 

 

 

 

Properties

 

49

 

49

 

49

 

49

 

Total sq. ft.

 

10,856

 

10,856

 

10,856

 

10,856

 

Percent leased (3)

 

92.2%

 

93.9%

 

92.2%

 

93.9%

 

Rental income (4)

 

$

68,540

 

$

68,001

 

$

136,734

 

$

134,202

 

Property net operating income (NOI) (5)

 

$

38,622

 

$

39,412

 

$

76,717

 

$

77,377

 

NOI % growth

 

-2.0%

 

 

 

-0.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Suburban:

 

 

 

 

 

 

 

 

 

Properties

 

318

 

318

 

318

 

318

 

Total sq. ft.

 

32,889

 

32,889

 

32,889

 

32,889

 

Percent leased (3)

 

94.3%

 

94.0%

 

94.3%

 

94.0%

 

Rental income (4)

 

$

103,206

 

$

103,556

 

$

206,112

 

$

203,909

 

Property net operating income (NOI) (5)

 

$

66,771

 

$

69,169

 

$

134,528

 

$

134,652

 

NOI % growth

 

-3.5%

 

 

 

-0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

Properties

 

367

 

367

 

367

 

367

 

Total sq. ft.

 

43,745

 

43,745

 

43,745

 

43,745

 

Percent leased (3)

 

93.8%

 

94.0%

 

93.8%

 

94.0%

 

Rental income (4)

 

$

171,746

 

$

171,557

 

$

342,846

 

$

338,111

 

Property net operating income (NOI) (5)

 

$

105,393

 

$

108,581

 

$

211,245

 

$

212,029

 

NOI % growth

 

-2.9%

 

 

 

-0.4%

 

 

 

 


(1)             Based on properties owned continuously since 4/1/2005 and excludes properties classified in discontinued operations.

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

(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.

18




HRPT Properties Trust
Supplemental Operating and Financial Data
June 30, 2006

SAME PROPERTY RESULTS AND ANALYSIS BY MAJOR MARKET
(dollars and sq. ft. in thousands)

 

 

 

As of and For the Three Months Ended (1)

 

As of and For the Six Months Ended (2)

 

 

 

6/30/2006

 

6/30/2005

 

6/30/2006

 

6/30/2005

 

Metro Philadelphia, PA:

 

 

 

 

 

 

 

 

 

Properties

 

21

 

21

 

21

 

21

 

Total sq. ft.

 

5,448

 

5,448

 

5,448

 

5,448

 

Percent leased (3)

 

90.8%

 

93.3%

 

90.8%

 

93.3%

 

Rental income (4)

 

$

31,632

 

$

35,772

 

$

63,493

 

$

66,729

 

Property net operating income (NOI) (5)

 

$

17,216

 

$

20,625

 

$

34,072

 

$

36,867

 

NOI % growth

 

-16.5%

 

 

 

-7.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Metro Washington, D.C.:

 

 

 

 

 

 

 

 

 

Properties

 

20

 

20

 

20

 

20

 

Total sq. ft.

 

2,645

 

2,645

 

2,645

 

2,645

 

Percent leased (3)

 

96.6%

 

95.1%

 

96.6%

 

95.1%

 

Rental income (4)

 

$

19,495

 

$

19,131

 

$

39,210

 

$

37,720

 

Property net operating income (NOI) (5)

 

$

12,266

 

$

12,308

 

$

24,735

 

$

24,648

 

NOI % growth

 

-0.3%

 

 

 

0.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Oahu, HI:

 

 

 

 

 

 

 

 

 

Properties

 

12

 

12

 

12

 

12

 

Total sq. ft.

 

9,627

 

9,627

 

9,627

 

9,627

 

Percent leased (3)

 

99.4%

 

99.4%

 

99.4%

 

99.4%

 

Rental income (4)

 

$

12,238

 

$

10,973

 

$

23,627

 

$

21,894

 

Property net operating income (NOI) (5)

 

$

9,974

 

$

8,846

 

$

19,112

 

$

17,546

 

NOI % growth

 

12.8%

 

 

 

8.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Metro Boston, MA:

 

 

 

 

 

 

 

 

 

Properties

 

36

 

36

 

36

 

36

 

Total sq. ft.

 

2,737

 

2,737

 

2,737

 

2,737

 

Percent leased (3)

 

96.8%

 

96.8%

 

96.8%

 

96.8%

 

Rental income (4)

 

$

14,996

 

$

14,015

 

$

30,028

 

$

28,064

 

Property net operating income (NOI) (5)

 

$

10,032

 

$

9,720

 

$

20,004

 

$

19,194

 

NOI % growth

 

3.2%

 

 

 

4.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

Southern California:

 

 

 

 

 

 

 

 

 

Properties

 

24

 

24

 

24

 

24

 

Total sq. ft.

 

1,444

 

1,444

 

1,444

 

1,444

 

Percent leased (3)

 

97.9%

 

97.5%

 

97.9%

 

97.5%

 

Rental income (4)

 

$

11,879

 

$

11,546

 

$

23,804

 

$

23,068

 

Property net operating income (NOI) (5)

 

$

8,173

 

$

7,603

 

$

16,562

 

$

15,463

 

NOI % growth

 

7.5%

 

 

 

7.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Metro Atlanta, GA:

 

 

 

 

 

 

 

 

 

Properties

 

32

 

32

 

32

 

32

 

Total sq. ft.

 

1,787

 

1,787

 

1,787

 

1,787

 

Percent leased (3)

 

90.5%

 

91.1%

 

90.5%

 

91.1%

 

Rental income (4)

 

$

7,938

 

$

8,072

 

$

15,848

 

$

16,025

 

Property net operating income (NOI) (5)

 

$

4,796

 

$

5,148

 

$

9,806

 

$

10,318

 

NOI % growth

 

-6.8%

 

 

 

-5.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Metro Austin, TX:

 

 

 

 

 

 

 

 

 

Properties

 

26

 

26

 

26

 

26

 

Total sq. ft.

 

2,807

 

2,807

 

2,807

 

2,807

 

Percent leased (3)

 

92.4%

 

85.3%

 

92.4%

 

85.3%

 

Rental income (4)

 

$

10,862

 

$

9,749

 

$

20,953

 

$

19,472

 

Property net operating income (NOI) (5)

 

$

5,469

 

$

4,544

 

$

10,610

 

$

9,302

 

NOI % growth

 

20.4%

 

 

 

14.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Markets:

 

 

 

 

 

 

 

 

 

Properties

 

196

 

196

 

196

 

196

 

Total sq. ft.

 

17,250

 

17,250

 

17,250

 

17,250

 

Percent leased (3)

 

90.8%

 

91.6%

 

90.8%

 

91.6%

 

Rental income (4)

 

$

62,706

 

$

62,299

 

$

125,883

 

$

125,139

 

Property net operating income (NOI) (5)

 

$

37,467

 

$

39,787

 

$

76,344

 

$

78,691

 

NOI % growth

 

-5.8%

 

 

 

-3.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

Properties

 

367

 

367

 

367

 

367

 

Total sq. ft.

 

43,745

 

43,745

 

43,745

 

43,745

 

Percent leased (3)

 

93.8%

 

94.0%

 

93.8%

 

94.0%

 

Rental income (4)

 

$

171,746

 

$

171,557

 

$

342,846

 

$

338,111

 

Property net operating income (NOI) (5)

 

$

105,393

 

$

108,581

 

$

211,245

 

$

212,029

 

NOI % growth

 

-2.9%

 

 

 

-0.4%

 

 

 

 


(1)             Based on properties owned continuously since 4/1/2005 and excludes properties classified in discontinued operations.

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

(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.

We define our major markets as markets which currently, or during either of the last two quarters, 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
June 30, 2006

SUMMARY OF EQUITY INVESTMENTS IN FORMER SUBSIDIARIES
(dollars in thousands)

 

 

As of the Three Months Ended

 

 

 

6/30/2006

 

3/31/2006 (1)

 

12/31/2005 (2)

 

9/30/2005

 

6/30/2005

 

Common shares owned by HRP:

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

 

 

4,000,000

 

4,000,000

 

4,000,000

 

Senior Housing Properties Trust

 

 

 

7,710,738

 

8,660,738

 

8,660,738

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent owned by HRP:

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

%

%

5.6

%

5.6

%

5.6

%

Senior Housing Properties Trust

 

%

%

10.7

%

12.6

%

12.6

%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

%

%

1.9

%

1.9

%

2.0

%

Senior Housing Properties Trust

 

%

%

1.8

%

2.1

%

2.1

%

Total

 

%

%

3.7

%

4.0

%

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Carrying book value on HRP’s balance sheet:

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

 

$

 

$

99,345

 

$

99,719

 

$

100,875

 

Senior Housing Properties Trust

 

 

 

94,952

 

105,779

 

106,780

 

Total

 

$

 

$

 

$

194,297

 

$

205,498

 

$

207,655

 

 

 

 

 

 

 

 

 

 

 

 

 

Market value of shares owned by HRP:

 

 

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

 

$

 

$

160,400

 

$

171,440

 

$

176,280

 

Senior Housing Properties Trust

 

 

 

130,389

 

164,554

 

163,775

 

Total

 

$

 

$

 

$

290,789

 

$

335,994

 

$

340,055

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

6/30/2006

 

6/30/2005

 

6/30/2006 (1)

 

6/30/2005

 

Equity in earnings of equity investments:

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

 

$

1,218

 

$

1,624

 

$

2,791

 

Senior Housing Properties Trust

 

 

1,834

 

1,512

 

3,655

 

 

 

$

 

$

3,052

 

$

3,136

 

$

6,446

 

 

 

 

 

 

 

 

 

 

 

EBITDA from equity investments:

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

 

$

4,254

 

$

4,774

 

$

8,400

 

Senior Housing Properties Trust

 

 

4,644

 

3,672

 

9,268

 

 

 

$

 

$

8,898

 

$

8,446

 

$

17,668

 

 

 

 

 

 

 

 

 

 

 

FFO from equity investments:

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

 

$

4,155

 

$

3,703

 

$

7,569

 

Senior Housing Properties Trust

 

 

3,200

 

2,723

 

6,467

 

 

 

$

 

$

7,355

 

$

6,426

 

$

14,036

 

 

 

 

 

 

 

 

 

 

 

Cash distributions from equity investments:

 

 

 

 

 

 

 

 

 

Hospitality Properties Trust

 

$

 

$

2,880

 

$

2,920

 

$

5,760

 

Senior Housing Properties Trust

 

 

2,772

 

2,467

 

5,543

 

 

 

$

 

$

5,652

 

$

5,387

 

$

11,303

 


(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
June 30, 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

%

$

16,175

 

2/1/2008

 

$

15,724

 

1.6

 

Secured debt   Two properties in Richland, WA 

 

8.000

%

8.000

%

4,355

 

11/15/2008

 

1,004

 

2.4

 

Secured debt   One property in Buffalo, NY

 

5.170

%

5.170

%

3,904

 

1/1/2009

 

134

 

2.5

 

Secured debt   See note (2)

 

6.814

%

7.842

%

244,229

 

1/31/2011

 

225,547

 

4.6

 

Secured debt   One property in Bannockburn, IL

 

8.050

%

5.240

%

25,347

 

6/1/2012

 

22,719

 

5.9

 

Secured debt   Two properties in Rochester, NY

 

6.000

%

6.000

%

5,409

 

10/11/2012

 

4,507

 

6.3

 

Secured debt   One property in Macon, GA

 

4.950

%

6.280

%

14,061

 

5/11/2014

 

11,930

 

7.9

 

Secured debt   One property in Syracuse, NY

 

7.310

%

6.030

%

4,585

 

1/1/2022

 

 

15.5

 

Secured debt   One property in Syracuse, NY

 

7.850

%

6.030

%

2,227

 

1/1/2022

 

 

15.5

 

Secured debt   23 properties in Atlanta, GA (3) 

 

8.500

%

5.070

%

29,208

 

4/11/2028

 

4,937

 

21.8

 

Secured debt   One property in Philadelphia, PA (4)

 

6.794

%

7.383

%

42,343

 

1/1/2029

 

2,478

 

22.5

 

Total / weighted average secured fixed rate debt

 

6.956

%

7.246

%

$

391,843

 

 

 

$

288,980

 

8.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

5.399

%

5.399

%

$

280,000

 

4/28/2009

 

$

280,000

 

2.8

 

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

 

5.629

%

5.629

%

400,000

 

3/16/2011

 

400,000

 

4.7

 

Total / weighted average unsecured floating rate debt

 

5.534

%

5.534

%

$

680,000

 

 

 

$

680,000

 

3.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior notes due 2010

 

8.875

%

9.000

%

$

30,000

 

8/1/2010

 

$

30,000

 

4.1

 

Senior notes due 2010

 

8.625

%

8.770

%

20,000

 

10/1/2010

 

20,000

 

4.3

 

Senior notes due 2012

 

6.950

%

7.179

%

200,000

 

4/1/2012

 

200,000

 

5.8

 

Senior notes due 2013

 

6.500

%

6.693

%

200,000

 

1/15/2013

 

200,000

 

6.6

 

Senior notes due 2014

 

5.750

%

5.828

%

250,000

 

2/15/2014

 

250,000

 

7.6

 

Senior notes due 2015

 

6.400

%

6.601

%

200,000

 

2/15/2015

 

200,000

 

8.6

 

Senior notes due 2015

 

5.750

%

5.790

%

250,000

 

11/1/2015

 

250,000

 

9.3

 

Senior notes due 2016

 

6.250

%

6.470

%

400,000

 

8/15/2016

 

400,000

 

10.1

 

Total / weighted average unsecured fixed rate debt

 

6.312

%

6.473

%

$

1,550,000

 

 

 

$

1,550,000

 

8.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / weighted average unsecured debt

 

6.075

%

6.186

%

$

2,230,000

 

 

 

$

2,230,000

 

6.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / weighted average secured fixed rate debt

 

6.956

%

7.246

%

$

391,843

 

 

 

$

288,980

 

8.1

 

Total / weighted average unsecured floating rate debt

 

5.534

%

5.534

%

680,000

 

 

 

680,000

 

3.9

 

Total / weighted average unsecured fixed rate debt 

 

6.312

%

6.473

%

1,550,000

 

 

 

1,550,000

 

8.2

 

Total / weighted average debt

 

6.207

%

6.345

%

$

2,621,843

(7)

 

 

$

2,518,980

 

7.1

 


(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 6/30/06, is 5.8%.

(6)             The notes become prepayable, at par, on September 16, 2006.  Interest rate is weighted average based on amounts outstanding during 2006.  Interest rate on amounts outstanding at 6/30/06, is 5.9%.

(7)             Total debt as of 6/30/2006, net of unamortized premiums and discounts, equals $2,611,077.

 

21




 

HRPT Properties Trust
Supplemental Operating and Financial Data
June 30, 2006

DEBT MATURITY SCHEDULE
(dollars in thousands)

 

 

Scheduled Principal Payments During Period

 

 

 

 

 

Secured

 

Unsecured

 

Unsecured

 

 

 

Weighted

 

 

 

Fixed Rate

 

Floating

 

Fixed

 

 

 

Average

 

Year

 

Debt

 

Rate Debt

 

Rate Debt

 

Total (1)

 

Interest Rate

 

2006

 

$

4,406

 

$

 

$

 

$

4,406

 

6.8

%

2007

 

9,402

 

 

 

9,402

 

6.9

%

2008

 

25,507

 

 

 

25,507

 

7.0

%

2009

 

6,957

 

280,000

 

 

286,957

 

5.4

%

2010

 

7,319

 

 

50,000

 

57,319

 

8.5

%

2011

 

228,854

 

400,000

 

 

628,854

 

6.1

%

2012

 

29,990

 

 

200,000

 

229,990

 

7.0

%

2013

 

2,603

 

 

200,000

 

202,603

 

6.5

%

2014

 

14,505

 

 

250,000

 

264,505

 

5.7

%

2015

 

2,658

 

 

450,000

 

452,658

 

6.0

%

2016 and thereafter

 

59,642

 

 

400,000

 

459,642

 

6.4

%

Total

 

$

391,843

 

$

680,000

 

$

1,550,000

 

$

2,621,843

 

6.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Percent

 

15.0

%

25.9

%

59.1

%

100.0

%

 

 


(1)             Total debt as of 6/30/2006, net of unamortized premiums and discounts, equals $2,611,077.

22




 

HRPT Properties Trust
Supplemental Operating and Financial Data
June 30, 2006

LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS

 

 

As of and For the Three Months Ended

 

 

 

6/30/2006

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

6/30/2005

 

Leverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt / total assets

 

48.0

%

46.9

%

47.3

%

45.3

%

46.1

%

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

 

45.4

%

44.8

%

46.7

%

44.8

%

45.7

%

Total debt / gross book value of real estate assets plus

 

 

 

 

 

 

 

 

 

 

 

equity investments in former subsidiaries (1)

 

45.4

%

44.8

%

45.1

%

43.1

%

43.9

%

Total debt / total market capitalization

 

47.5

%

46.2

%

48.4

%

42.7

%

43.4

%

Total debt / total book capitalization

 

49.5

%

48.4

%

48.8

%

46.8

%

47.6

%

Secured debt / total assets

 

7.2

%

7.1

%

7.0

%

6.7

%

8.7

%

Variable rate debt / total debt

 

26.0

%

23.6

%

24.0

%

29.8

%

25.4

%

Variable rate debt / total assets

 

12.5

%

11.1

%

11.4

%

13.5

%

11.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA / interest expense

 

2.7

x

2.9

x

3.0

x

3.3

x

3.2

x

EBITDA / interest expense + preferred distributions

 

2.2

x

2.3

x

2.3

x

2.5

x

2.4

x

 

 

 

 

 

 

 

 

 

 

 

 

Public Debt Covenants (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt / adjusted total assets (maximum 60%)

 

44.4

%

43.6

%

44.1

%

42.2

%

43.1

%

Secured debt / adjusted total assets (maximum 40%)

 

6.6

%

6.6

%

6.6

%

6.3

%

8.1

%

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

 

2.9x

 

3.0x

 

3.0x

 

3.2x

 

3.1x

 

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

 

224.8

%

229.6

%

226.5

%

239.0

%

233.0

%


(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
June 30, 2006

TENANT IMPROVEMENTS, LEASING COSTS AND CAPITAL IMPROVEMENTS
(dollars and sq. ft. in thousands, except per sq. ft. data)

 

 

For the Three Months Ended

 

 

 

6/30/2006

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

6/30/2005

 

Tenant improvements (TI)

 

$

14,641

 

$

15,168

 

$

23,436

 

$

27,829

 

$

21,315

 

Leasing costs (LC)

 

9,692

 

5,050

 

7,124

 

4,617

 

7,588

 

Total TI and LC

 

24,333

 

20,218

 

30,560

 

32,446

 

28,903

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring building improvements (1)

 

6,254

 

5,615

 

8,986

 

7,044

 

1,821

 

Development, redevelopment and other activities (2)

 

4,820

 

2,687

 

3,458

 

4,674

 

5,396

 

Total capital improvements, including TI and LC

 

$

35,407

 

$

28,520

 

$

43,004

 

$

44,164

 

$

36,120

 

 

 

 

 

 

 

 

 

 

 

 

 

Sq. ft. beginning of period

 

56,835

 

55,035

 

54,132

 

52,792

 

44,151

 

Sq. ft. end of period

 

58,029

 

56,835

 

55,035

 

54,132

 

52,792

 

Average sq. ft. during period

 

57,432

 

55,935

 

54,584

 

53,462

 

48,472

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring building improvements per average sq. ft. during period

 

$

0.11

 

$

0.10

 

$

0.16

 

$

0.13

 

$

0.04

 


(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
June 30, 2006

2006 ACQUISITIONS AND DISPOSITIONS INFORMATION
(dollars and sq. ft. in thousands, except per sq. ft. amounts)

Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase

 

 

 

Remaining

 

 

 

 

Date

 

 

 

Office/

 

Number of

 

 

 

Purchase

 

Price (1) /

 

Cap

 

Lease

 

Percent

 

 

Acquired

 

Location

 

Industrial

 

Properties

 

Sq. Ft.

 

Price (1)

 

Sq. Ft.

 

Rate (2)

 

Term (3)

 

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.

 

 

Q1 2006 Total / Weighted Average

 

 

 

35

 

1,827

 

201,600

 

110.34

 

9.0%

 

5.8

 

88.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apr-06

 

Winchester, VA

 

Industrial

 

1

 

308

 

14,735

 

47.84

 

9.1%

 

7.0

 

100.0%

 

Trex Company, Inc.

Apr-06

 

Macon, GA

 

Office

 

1

 

196

 

24,146

 

123.19

 

9.7%

 

4.7

 

98.9%

 

Ikon Office Solutions, Inc.

May-06

 

Columbia, SC

 

Office

 

8

 

538

 

51,100

 

94.98

 

9.3%

 

4.5

 

93.3%

 

State of South Carolina

Jun-06

 

Carmel, IN

 

Office

 

1

 

72

 

6,575

 

91.32

 

9.3%

 

3.2

 

87.6%

 

New York Life Insurance Co.

Jun-06

 

Blue Ash, OH

 

Office

 

1

 

93

 

8,700

 

93.55

 

9.9%

 

5.9

 

94.0%

 

First Data Government Solutions, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2 2006 Total / Weighted Average

 

 

 

12

 

1,207

 

105,256

 

87.20

 

9.4%

 

4.8

 

95.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Weighted Average

 

 

 

47

 

3,034

 

$306,856

 

$101.14

 

9.2%

 

5.5

 

91.6%

 

 

 

 

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Price

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Original

 

Multiple

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Original

 

Sale

 

Purchase

 

of Original

 

Book

Date

 

 

 

Office/

 

Number of

 

 

 

Sale

 

Purchase

 

Price (1) /

 

Price (1) /

 

Purchase

 

Gain

Sold

 

Location

 

Industrial

 

Properties

 

Sq. Ft.

 

Price (1)

 

Price (1)

 

Sq. Ft.

 

Sq. Ft.

 

Price

 

on Sale

 

There were no dispositions during the six months ended June 30, 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
June 30, 2006

2006 FINANCING ACTIVITIES

(amounts in thousands)

 

 

For the Three Months Ended

 

 

 

6/30/2006

 

3/31/2006

 

 

 

 

 

 

 

Debt Transactions (1):

 

 

 

 

 

New debt raised

 

$

 

$

400,000

 

New debt assumed as part of acquisitions

 

13,053

 

7,532

 

Total new debt

 

13,053

 

407,532

 

 

 

 

 

 

 

Debt retired

 

 

(350,000

)

Net debt

 

$

13,053

 

$

57,532

 

 

 

 

 

 

 

Equity Transactions:

 

 

 

 

 

New common shares issued

 

 

 

New common equity raised, net

 

$

 

$

 

 

 

 

 

 

 

New preferred shares issued

 

 

6,000

 

New preferred equity raised, net

 

 

145,015

 

Total new equity

 

$

 

$

145,015

 

 

 

 

 

 

 

Preferred equity retired

 

 

(200,000

)

Net equity

 

$

 

$

(54,985

)


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

26




 

 

 

 

 

 

 

 

 

 

PORTFOLIO AND LEASING INFORMATION

 

 

 

 

 

 

 

 

 




HRPT Properties Trust
Supplemental Operating and Financial Data
June 30, 2006

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

(sq. ft. in thousands)

 

 

Metro

 

Metro

 

 

 

Metro

 

 

 

Metro

 

Metro

 

 

 

 

 

 

Philadelphia,
PA

 

Washington,
DC

 

Oahu,
HI

 

Boston,
MA

 

Southern
California

 

Atlanta,
GA

 

Austin,
TX

 

Other
Markets

 

Total

Square Feet (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

5,448

 

2,645

 

 

2,737

 

1,444

 

2,127

 

1,491

 

18,010

 

33,902

Industrial

 

 

 

17,929

 

 

 

 

1,316

 

4,882

 

24,127

Total

 

5,448

 

2,645

 

17,929

 

2,737

 

1,444

 

2,127

 

2,807

 

22,892

 

58,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

4,597

 

892

 

158

 

523

 

331

 

 

186

 

4,799

 

11,486

Suburban

 

851

 

1,753

 

17,771

 

2,214

 

1,113

 

2,127

 

2,621

 

18,093

 

46,543

Total

 

5,448

 

2,645

 

17,929

 

2,737

 

1,444

 

2,127

 

2,807

 

22,892

 

58,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

11

 

1,373

 

 

211

 

509

 

668

 

15

 

2,863

 

5,650

Medical related tenants (2)

 

972

 

354

 

 

1,014

 

632

 

159

 

400

 

2,705

 

6,236

Land leases (2)

 

 

 

17,440

 

 

 

 

 

 

17,440

Other investment grade tenants (2)(3)

 

1,886

 

98

 

 

878

 

35

 

167

 

396

 

6,062

 

9,522

Other tenants (2)

 

2,079

 

729

 

7

 

548

 

238

 

873

 

1,782

 

9,201

 

15,457

Vacant

 

500

 

91

 

482

 

86

 

30

 

260

 

214

 

2,061

 

3,724

Total

 

5,448

 

2,645

 

17,929

 

2,737

 

1,444

 

2,127

 

2,807

 

22,892

 

58,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Major Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

16%

 

8%

 

0%

 

8%

 

4%

 

6%

 

4%

 

54%

 

100%

Industrial

 

0%

 

0%

 

74%

 

0%

 

0%

 

0%

 

6%

 

20%

 

100%

Total

 

9%

 

4%

 

31%

 

5%

 

3%

 

4%

 

5%

 

39%

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

40%

 

8%

 

1%

 

4%

 

3%

 

0%

 

2%

 

42%

 

100%

Suburban

 

2%

 

4%

 

38%

 

5%

 

2%

 

4%

 

6%

 

39%

 

100%

Total

 

9%

 

4%

 

31%

 

5%

 

3%

 

4%

 

5%

 

39%

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government
tenants

 

0%

 

24%

 

0%

 

4%

 

9%

 

12%

 

0%

 

51%

 

100%

Medical related tenants

 

16%

 

6%

 

0%

 

16%

 

10%

 

3%

 

6%

 

43%

 

100%

Land leases

 

0%

 

0%

 

100%

 

0%

 

0%

 

0%

 

0%

 

0%

 

100%

Other investment grade tenants (3)

 

20%

 

1%

 

0%

 

9%

 

0%

 

2%

 

4%

 

64%

 

100%

Other tenants

 

13%

 

5%

 

0%

 

3%

 

1%

 

6%

 

12%

 

60%

 

100%

Vacant

 

13%

 

2%

 

13%

 

2%

 

1%

 

7%

 

6%

 

56%

 

100%

Total

 

9%

 

4%

 

31%

 

5%

 

3%

 

4%

 

5%

 

39%

 

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%

 

21%

 

20%

Suburban

 

16%

 

66%

 

99%

 

81%

 

77%

 

100%

 

93%

 

79%

 

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%

 

13%

 

10%

Medical related tenants

 

18%

 

13%

 

0%

 

37%

 

44%

 

8%

 

14%

 

12%

 

11%

Land leases

 

0%

 

0%

 

97%

 

0%

 

0%

 

0%

 

0%

 

0%

 

30%

Other investment grade tenants (3)

 

35%

 

4%

 

0%

 

32%

 

2%

 

8%

 

14%

 

26%

 

16%

Other tenants

 

38%

 

28%

 

0%

 

20%

 

17%

 

41%

 

63%

 

40%

 

27%

Vacant

 

9%

 

3%

 

3%

 

3%

 

2%

 

12%

 

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 6/30/2006, 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 currently, or during either of the last two quarters, 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
June 30, 2006

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

(dollars in thousands)

 

 

Metro

 

Metro

 

 

 

Metro

 

 

 

Metro

 

Metro

 

 

 

 

 

 

Philadelphia,
PA

 

Washington,
DC

 

Oahu,
HI

 

Boston,
MA

 

Southern
California

 

Atlanta,
GA

 

Austin,
TX

 

Other
Markets

 

Total

Annualized Rental Income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

$

124,642

 

$

79,236

 

$

 

$

60,769

 

$

49,725

 

$

36,305

 

$

28,282

 

$

311,166

 

$

690,125

Industrial

 

 

 

58,988

 

 

 

 

15,140

 

40,750

 

114,878

Total

 

$

124,642

 

$

79,236

 

$

58,988

 

$

60,769

 

$

49,725

 

$

36,305

 

$

43,422

 

$

351,916

 

$

805,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

$

113,379

 

$

35,448

 

$

1,116

 

$

19,825

 

$

21,315

 

$

 

$

5,066

 

$

88,066

 

$

284,215

Suburban

 

11,263

 

43,788

 

57,872

 

40,944

 

28,410

 

36,305

 

38,356

 

263,850

 

520,788

Total

 

$

124,642

 

$

79,236

 

$

58,988

 

$

60,769

 

$

49,725

 

$

36,305

 

$

43,422

 

$

351,916

 

$

805,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other
government tenants

 

$

233

 

$

40,701

 

$

 

$

5,161

 

$

10,273

 

$

13,973

 

$

227

 

$

50,648

 

$

121,216

Medical related tenants

 

20,523

 

12,873

 

 

21,418

 

33,097

 

3,360

 

9,986

 

49,993

 

151,250

Land leases

 

 

 

58,838

 

 

 

 

 

 

58,838

Other investment grade tenants (2)

 

49,290

 

3,820

 

 

17,006

 

997

 

2,738

 

5,488

 

110,032

 

189,371

Other tenants

 

54,596

 

21,842

 

150

 

17,184

 

5,358

 

16,234

 

27,721

 

141,243

 

284,328

Total

 

$

124,642

 

$

79,236

 

$

58,988

 

$

60,769

 

$

49,725

 

$

36,305

 

$

43,422

 

$

351,916

 

$

805,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Major Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

18%

 

11%

 

0%

 

9%

 

7%

 

5%

 

4%

 

46%

 

100%

Industrial

 

0%

 

0%

 

51%

 

0%

 

0%

 

0%

 

13%

 

36%

 

100%

Total

 

15%

 

10%

 

7%

 

8%

 

6%

 

5%

 

5%

 

44%

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

40%

 

12%

 

0%

 

7%

 

7%

 

0%

 

2%

 

32%

 

100%

Suburban

 

2%

 

8%

 

11%

 

8%

 

5%

 

7%

 

7%

 

52%

 

100%

Total

 

15%

 

10%

 

7%

 

8%

 

6%

 

5%

 

5%

 

44%

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other
government tenants

 

0%

 

34%

 

0%

 

4%

 

8%

 

12%

 

0%

 

42%

 

100%

Medical related tenants

 

14%

 

9%

 

0%

 

14%

 

22%

 

2%

 

7%

 

32%

 

100%

Land leases

 

0%

 

0%

 

100%

 

0%

 

0%

 

0%

 

0%

 

0%

 

100%

Other investment grade tenants (2)

 

26%

 

2%

 

0%

 

9%

 

1%

 

1%

 

3%

 

58%

 

100%

Other tenants

 

19%

 

8%

 

0%

 

6%

 

2%

 

6%

 

10%

 

49%

 

100%

Total

 

15%

 

10%

 

7%

 

8%

 

6%

 

5%

 

5%

 

44%

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Property Type and Tenant:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

100%

 

100%

 

0%

 

100%

 

100%

 

100%

 

65%

 

88%

 

86%

Industrial

 

0%

 

0%

 

100%

 

0%

 

0%

 

0%

 

35%

 

12%

 

14%

Total

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

91%

 

45%

 

2%

 

33%

 

43%

 

0%

 

12%

 

25%

 

35%

Suburban

 

9%

 

55%

 

98%

 

67%

 

57%

 

100%

 

88%

 

75%

 

65%

Total

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other
government tenants

 

0%

 

51%

 

0%

 

8%

 

21%

 

38%

 

1%

 

14%

 

15%

Medical related tenants

 

16%

 

16%

 

0%

 

35%

 

66%

 

9%

 

23%

 

14%

 

19%

Land leases

 

0%

 

0%

 

100%

 

0%

 

0%

 

0%

 

0%

 

0%

 

7%

Other investment grade tenants (2)

 

40%

 

5%

 

0%

 

28%

 

2%

 

8%

 

13%

 

31%

 

24%

Other tenants

 

44%

 

28%

 

0%

 

29%

 

11%

 

45%

 

63%

 

41%

 

35%

Total

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%


(1)                Annualized rental income is rents pursuant to signed leases as of 6/30/2006, 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 currently, or during either of the last two quarters, 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

June 30, 2006

 

SUMMARY OF PROPERTIES BY MAJOR MARKET

(sq. ft. in thousands)

 

 

 

As of 6/30/2006

 

Annualized

 

% of Annualized

 

Market

 

Properties

 

Sq. Ft.

 

% Sq. Ft.

 

Rental Income (1)

 

Rental Income (1)

 

Metro Philadelphia, PA

 

21

 

5,448

 

9.4%

 

$

124,642

 

15.5%

 

Metro Washington, DC

 

20

 

2,645

 

4.6%

 

79,236

 

9.8%

 

Oahu, HI

 

56

 

17,929

 

30.9%

 

58,988

 

7.3%

 

Metro Boston, MA

 

36

 

2,737

 

4.7%

 

60,769

 

7.5%

 

Southern California

 

24

 

1,444

 

2.5%

 

49,725

 

6.2%

 

Metro Atlanta, GA

 

41

 

2,127

 

3.7%

 

36,305

 

4.5%

 

Metro Austin, TX

 

26

 

2,807

 

4.8%

 

43,422

 

5.4%

 

Other markets

 

263

 

22,892

 

39.4%

 

351,916

 

43.8%

 

Total

 

487

 

58,029

 

100.0%

 

$

805,003

 

100.0%

 

 

 

 

 

Percent NOI For the Three Months Ended (2)

 

 

 

6/30/2006

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

6/30/2005

 

Metro Philadelphia, PA

 

14.1%

 

14.3%

 

15.5%

 

16.4%

 

18.7%

 

Metro Washington, DC

 

10.1%

 

10.6%

 

11.6%

 

11.1%

 

11.2%

 

Oahu, HI

 

10.2%

 

9.7%

 

10.8%

 

10.1%

 

8.3%

 

Metro Boston, MA

 

8.2%

 

8.5%

 

8.6%

 

8.8%

 

8.8%

 

Southern California

 

6.7%

 

7.1%

 

7.4%

 

7.6%

 

6.9%

 

Metro Atlanta, GA

 

4.3%

 

4.7%

 

4.8%

 

4.8%

 

4.9%

 

Metro Austin, TX

 

4.5%

 

4.4%

 

4.0%

 

3.8%

 

4.1%

 

Other markets

 

41.9%

 

40.7%

 

37.3%

 

37.4%

 

37.1%

 

Total

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

 


(1)             Annualized rental income is rents pursuant to signed leases as of 6/30/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization and 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 6/30/2006 and 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 currently, or during either of the last two quarters, 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
June 30, 2006

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

 

 

As of and For the Three Months Ended (1)

 

 

 

6/30/2006

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

6/30/2005

 

Properties

 

487

 

474

 

442

 

434

 

415

 

Total sq. ft. (2)

 

58,029

 

56,835

 

55,035

 

54,132

 

52,792

 

Percentage leased

 

93.6

%

93.4

%

94.3

%

93.9

%

94.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Leasing Activity (sq. ft.):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

629

 

606

 

538

 

512

 

573

 

Renewals

 

1,343

 

1,160

 

774

 

404

 

726

 

Total

 

1,972

 

1,766

 

1,312

 

916

 

1,299

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change in GAAP Rent (3):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

8%

 

-4%

 

-2%

 

-6%

 

12%

 

Renewals

 

3%

 

4%

 

13%

 

-4%

 

0%

 

Weighted average by sq. ft.

 

5%

 

2%

 

5%

 

-5%

 

5%

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments (4):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

10,975

 

$

8,966

 

$

9,681

 

$

10,384

 

$

12,658

 

Renewals

 

15,116

 

9,944

 

3,738

 

2,834

 

2,589

 

Total

 

$

26,091

 

$

18,910

 

$

13,419

 

$

13,218

 

$

15,247

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments per Sq. Ft. (4):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

17.45

 

$

14.80

 

$

17.99

 

$

20.28

 

$

22.09

 

Renewals

 

$

11.26

 

$

8.57

 

$

4.83

 

$

7.01

 

$

3.57

 

Total

 

$

13.23

 

$

10.71

 

$

10.23

 

$

14.43

 

$

11.74

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

New leases

 

6.2

 

6.9

 

7.3

 

6.3

 

7.4

 

Renewals

 

8.9

 

11.7

 

11.4

 

5.5

 

3.1

 

Total

 

8.0

 

10.3

 

9.4

 

5.9

 

4.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments per Sq. Ft. per Year:

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

2.81

 

$

2.14

 

$

2.46

 

$

3.22

 

$

2.99

 

Renewals

 

$

1.26

 

$

0.73

 

$

0.42

 

$

1.28

 

$

1.15

 

Total

 

$

1.65

 

$

1.04

 

$

1.09

 

$

2.45

 

$

2.40

 

 


(1)             Results as of and for the three months ended 6/30/2006 and 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
June 30, 2006

OCCUPANCY AND LEASING ANALYSIS BY PROPERTY TYPE AND MAJOR MARKET
(3 MONTHS ENDED 6/30/2006)
(dollars and sq. ft. in thousands)

 

 

 

 

Sq. Ft. Leases Executed During

 

 

 

 

 

Three Months Ended 6/30/2006 (1)

 

 

 

Total Sq. Ft.

 

 

 

 

 

 

 

 

 

As of

 

 

 

 

 

 

 

Property Type/Market

 

6/30/2006 (1)

 

New

 

Renewals

 

Total

 

Office

 

33,902

 

483

 

729

 

1,212

 

Industrial

 

24,127

 

146

 

614

 

760

 

Total

 

58,029

 

629

 

1,343

 

1,972

 

 

 

 

 

 

 

 

 

 

 

CBD

 

11,486

 

202

 

186

 

388

 

Suburban

 

46,543

 

427

 

1,157

 

1,584

 

Total

 

58,029

 

629

 

1,343

 

1,972

 

 

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

5,448

 

138

 

46

 

184

 

Metro Washington, DC

 

2,645

 

35

 

93

 

128

 

Oahu, HI

 

17,929

 

55

 

241

 

296

 

Metro Boston, MA

 

2,737

 

4

 

27

 

31

 

Southern California

 

1,444

 

3

 

18

 

21

 

Metro Atlanta, GA

 

2,127

 

19

 

36

 

55

 

Metro Austin, TX

 

2,807

 

50

 

9

 

59

 

Other markets

 

22,892

 

325

 

873

 

1,198

 

Total

 

58,029

 

629

 

1,343

 

1,972

 

 

 

 

 

 

Sq. Ft. Leased

 

 

 

As of

 

3/31/2006

 

 

 

New and

 

Acquisitions /

 

As of

 

6/30/2006

 

 

 

3/31/2006

 

% Leased (2)

 

Expired

 

Renewals

 

(Sales)

 

6/30/2006 (1)

 

% Leased

 

Office

 

30,227

 

91.6%

 

(1,252

)

1,212

 

846

 

31,033

 

91.5%

 

Industrial

 

22,876

 

96.0%

 

(672

)

760

 

308

 

23,272

 

96.5%

 

Total

 

53,103

 

93.4%

 

(1,924

)

1,972

 

1,154

 

54,305

 

93.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

10,598

 

92.3%

 

(374

)

388

 

 

10,612

 

92.4%

 

Suburban

 

42,505

 

93.7%

 

(1,550

)

1,584

 

1,154

 

43,693

 

93.9%

 

Total

 

53,103

 

93.4%

 

(1,924

)

1,972

 

1,154

 

54,305

 

93.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

4,985

 

91.5%

 

(221

)

184

 

 

4,948

 

90.8%

 

Metro Washington, DC

 

2,524

 

95.4%

 

(97

)

128

 

 

2,555

 

96.6%

 

Oahu, HI

 

17,404

 

97.0%

 

(253

)

296

 

 

17,447

 

97.3%

 

Metro Boston, MA

 

2,650

 

96.8%

 

(31

)

31

 

 

2,650

 

96.8%

 

Southern California

 

1,411

 

97.7%

 

(18

)

21

 

 

1,414

 

97.9%

 

Metro Atlanta, GA

 

1,860

 

87.4%

 

(48

)

55

 

 

1,867

 

87.8%

 

Metro Austin, TX

 

2,549

 

90.8%

 

(15

)

59

 

 

2,593

 

92.4%

 

Other markets

 

19,720

 

90.9%

 

(1,241

)

1,198

 

1,154

 

20,831

 

91.0%

 

Total

 

53,103

 

93.4%

 

(1,924

)

1,972

 

1,154

 

54,305

 

93.6%

 

 


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

(2)             Based on total sq. ft. as of March 31, 2006; excludes acquisitions and effects of space remeasurements during the period.

We define our major markets as markets which currently, or during either of the last two quarters, 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
June 30, 2006

OCCUPANCY AND LEASING ANALYSIS BY PROPERTY TYPE AND MAJOR MARKET
(6 MONTHS ENDED 6/30/2006)
(dollars and sq. ft. in thousands)

 

 

 

 

Sq. Ft. Leases Executed During

 

 

 

 

 

Six Months Ended 6/30/2006 (1)

 

 

 

Total Sq. Ft.

 

 

 

 

 

 

 

 

 

As of

 

 

 

 

 

 

 

Property Type/Market

 

6/30/2006 (1)

 

New

 

Renewals

 

Total

 

Office

 

33,902

 

816

 

1,672

 

2,488

 

Industrial

 

24,127

 

419

 

831

 

1,250

 

Total

 

58,029

 

1,235

 

2,503

 

3,738

 

 

 

 

 

 

 

 

 

 

 

CBD

 

11,486

 

314

 

708

 

1,022

 

Suburban

 

46,543

 

921

 

1,795

 

2,716

 

Total

 

58,029

 

1,235

 

2,503

 

3,738

 

 

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

5,448

 

178

 

440

 

618

 

Metro Washington, DC

 

2,645

 

56

 

167

 

223

 

Oahu, HI

 

17,929

 

286

 

401

 

687

 

Metro Boston, MA

 

2,737

 

80

 

344

 

424

 

Southern California

 

1,444

 

11

 

33

 

44

 

Metro Atlanta, GA

 

2,127

 

62

 

81

 

143

 

Metro Austin, TX

 

2,807

 

82

 

23

 

105

 

Other markets

 

22,892

 

480

 

1,014

 

1,494

 

Total

 

58,029

 

1,235

 

2,503

 

3,738

 

 

 

 

 

 

Sq. Ft. Leased

 

 

 

As of

 

12/31/2005

 

 

 

New and

 

Acquisitions /

 

As of

 

6/30/2006

 

 

 

12/31/2005

 

% Leased (2)

 

Expired

 

Renewals

 

(Sales) (3)

 

6/30/2006 (1)

 

% Leased

 

Office

 

28,931

 

92.5%

 

(2,777

)

2,488

 

2,391

 

31,033

 

91.5%

 

Industrial

 

22,952

 

96.6%

 

(1,238

)

1,250

 

308

 

23,272

 

96.5%

 

Total

 

51,883

 

94.3%

 

(4,015

)

3,738

 

2,699

 

54,305

 

93.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

10,698

 

92.9%

 

(1,108

)

1,022

 

 

10,612

 

92.4%

 

Suburban

 

41,185

 

94.6%

 

(2,907

)

2,716

 

2,699

 

43,693

 

93.9%

 

Total

 

51,883

 

94.3%

 

(4,015

)

3,738

 

2,699

 

54,305

 

93.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

5,064

 

93.0%

 

(734

)

618

 

 

4,948

 

90.8%

 

Metro Washington, DC

 

2,538

 

95.9%

 

(206

)

223

 

 

2,555

 

96.6%

 

Oahu, HI

 

17,481

 

97.8%

 

(721

)

687

 

 

17,447

 

97.3%

 

Metro Boston, MA

 

2,654

 

97.0%

 

(428

)

424

 

 

2,650

 

96.8%

 

Southern California

 

1,414

 

97.9%

 

(44

)

44

 

 

1,414

 

97.9%

 

Metro Atlanta, GA

 

1,947

 

89.1%

 

(155

)

143

 

(68

)

1,867

 

87.8%

 

Metro Austin, TX

 

2,542

 

90.6%

 

(54

)

105

 

 

2,593

 

92.4%

 

Other markets

 

18,243

 

91.7%

 

(1,673

)

1,494

 

2,767

 

20,831

 

91.0%

 

Total

 

51,883

 

94.3%

 

(4,015

)

3,738

 

2,699

 

54,305

 

93.6%

 


(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 currently, or during either of the last two quarters, 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.

33




 

HRPT Properties Trust
Supplemental Operating and Financial Data
June 30, 2006

TENANTS REPRESENTING 1% OR MORE OF TOTAL RENT
(sq. ft. in thousands)

 

 

 

 

% of Total

 

% of Rental

 

 

 

Tenants

 

Sq. Ft. (1)

 

Sq. Ft. (1)

 

Income (2)

 

Expiration

 

 1   U.S. Government

 

5,022

 

9.2%

 

13.7%

 

2006 to 2020

 

 2   GlaxoSmithKline plc

 

607

 

1.1%

 

1.8%

 

2013

 

 3   PNC Financial Services Group

 

460

 

0.8%

 

1.4%

 

2011, 2021

 

 4   Comcast Corporation

 

406

 

0.7%

 

1.2%

 

2006, 2008

 

 5   Solectron Corporation

 

765

 

1.4%

 

1.1%

 

2014

 

 6   Tyco International Ltd

 

660

 

1.2%

 

1.1%

 

2007, 2017

 

 7   Motorola, Inc.

 

775

 

1.4%

 

1.1%

 

2006, 2008, 2010

 

 8   The Scripps Research Institute

 

164

 

0.3%

 

1.1%

 

2019

 

 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

 

9,907

 

18.0%

 

25.7%

 

 

 

 


(1)             Sq. ft. is pursuant to signed leases as of 6/30/2006, 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 6/30/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization and rents from properties classified in discontinued operations.

34




 

 

HRPT Properties Trust

Supplemental Operating and Financial Data

June 30, 2006

 

THREE YEAR LEASE EXPIRATION SCHEDULE BY PROPERTY TYPE

(dollars and sq. ft. in thousands)

 

 

 

Total as of
6/30/2006 (1)

 

2006

 

2007

 

2008

 

2009 and
Thereafter

 

Office:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

33,902

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

31,033

 

2,122

 

2,829

 

3,132

 

22,950

 

Percent

 

100.0

%

6.8

%

9.1

%

10.1

%

74.0

%

Annualized rental income (3)

 

$

690,125

 

$

44,236

 

$

62,764

 

$

69,193

 

$

513,932

 

Percent

 

100.0

%

6.4

%

9.1

%

10.0

%

74.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Industrial:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

24,127

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

23,272

 

499

 

1,103

 

1,384

 

20,286

 

Percent

 

100.0

%

2.1

%

4.7

%

5.9

%

87.3

%

Annualized rental income (3)

 

$

114,878

 

$

2,774

 

$

7,771

 

$

10,188

 

$

94,145

 

Percent

 

100.0

%

2.4

%

6.8

%

8.9

%

81.9

%

 

 

 

 

 

 

 

 

 

 

 

 

CBD:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

11,486

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

10,612

 

508

 

839

 

1,239

 

8,026

 

Percent

 

100.0

%

4.8

%

7.9

%

11.7

%

75.6

%

Annualized rental income (3)

 

$

284,215

 

$

13,815

 

$

22,086

 

$

30,188

 

$

218,126

 

Percent

 

100.0

%

4.9

%

7.8

%

10.6

%

76.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Suburban:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

46,543

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

43,693

 

2,113

 

3,093

 

3,277

 

35,210

 

Percent

 

100.0

%

4.8

%

7.1

%

7.5

%

80.6

%

Annualized rental income (3)

 

$

520,788

 

$

33,195

 

$

48,449

 

$

49,193

 

$

389,951

 

Percent

 

100.0

%

6.4

%

9.3

%

9.4

%

74.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

58,029

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

54,305

 

2,621

 

3,932

 

4,516

 

43,236

 

Percent

 

100.0

%

4.8

%

7.2

%

8.3

%

79.7

%

Annualized rental income (3)

 

$

805,003

 

$

47,010

 

$

70,535

 

$

79,381

 

$

608,077

 

Percent

 

100.0

%

5.8

%

8.8

%

9.9

%

75.5

%


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

(2)             Sq. ft. is pursuant to signed leases as of 6/30/2006, 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 6/30/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

35




 

HRPT Properties Trust

Supplemental Operating and Financial Data

June 30, 2006

 

THREE YEAR LEASE EXPIRATION SCHEDULE BY MAJOR MARKET

(dollars and sq. ft. in thousands)

 

 

 

Total as of
6/30/2006 (1)

 

2006

 

2007

 

2008

 

2009 and
Thereafter

 

Metro Philadelphia, PA:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

5,448

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

4,948

 

130

 

201

 

671

 

3,946

 

Percent

 

100.0

%

2.6

%

4.1

%

13.6

%

79.7

%

Annualized rental income (3)

 

$

124,642

 

$

3,633

 

$

3,728

 

$

15,820

 

$

101,461

 

Percent

 

100.0

%

2.9

%

3.0

%

12.7

%

81.4

%

Metro Washington, DC:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,645

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

2,555

 

159

 

245

 

125

 

2,026

 

Percent

 

100.0

%

6.2

%

9.6

%

4.9

%

79.3

%

Annualized rental income (3)

 

$

79,236

 

$

4,211

 

$

7,181

 

$

3,769

 

$

64,075

 

Percent

 

100.0

%

5.3

%

9.1

%

4.8

%

80.8

%

Oahu, HI:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

17,929

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

17,447

 

106

 

447

 

495

 

16,399

 

Percent

 

100.0

%

0.6

%

2.6

%

2.8

%

94.0

%

Annualized rental income (3)

 

$

58,988

 

$

455

 

$

928

 

$

2,358

 

$

55,247

 

Percent

 

100.0

%

0.8

%

1.6

%

4.0

%

93.6

%

Metro Boston, MA

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,737

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

2,650

 

196

 

304

 

150

 

2,000

 

Percent

 

100.0

%

7.4

%

11.5

%

5.7

%

75.4

%

Annualized rental income (3)

 

$

60,769

 

$

5,295

 

$

6,843

 

$

4,146

 

$

44,485

 

Percent

 

100.0

%

8.7

%

11.3

%

6.8

%

73.2

%

Southern California:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

1,444

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

1,414

 

147

 

277

 

110

 

880

 

Percent

 

100.0

%

10.4

%

19.6

%

7.8

%

62.2

%

Annualized rental income (3)

 

$

49,725

 

$

3,751

 

$

8,841

 

$

4,814

 

$

32,319

 

Percent

 

100.0

%

7.5

%

17.8

%

9.7

%

65.0

%

Metro Atlanta, GA:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,127

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

1,867

 

137

 

130

 

203

 

1,397

 

Percent

 

100.0

%

7.3

%

7.0

%

10.9

%

74.8

%

Annualized rental income (3)

 

$

36,305

 

$

2,846

 

$

2,489

 

$

3,868

 

$

27,102

 

Percent

 

100.0

%

7.8

%

6.9

%

10.7

%

74.6

%

Metro Austin, TX:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,807

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

2,593

 

66

 

532

 

154

 

1,841

 

Percent

 

100.0

%

2.5

%

20.5

%

5.9

%

71.1

%

Annualized rental income (3)

 

$

43,422

 

$

1,139

 

$

8,058

 

$

3,094

 

$

31,131

 

Percent

 

100.0

%

2.6

%

18.6

%

7.1

%

71.7

%

Other markets:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

22,892

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

20,831

 

1,680

 

1,796

 

2,608

 

14,747

 

Percent

 

100.0

%

8.1

%

8.6

%

12.5

%

70.8

%

Annualized rental income (3)

 

$

351,916

 

$

25,680

 

$

32,467

 

$

41,512

 

$

252,257

 

Percent

 

100.0

%

7.3

%

9.2

%

11.8

%

71.7

%

Total:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

58,029

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

54,305

 

2,621

 

3,932

 

4,516

 

43,236

 

Percent

 

100.0

%

4.8

%

7.2

%

8.3

%

79.7

%

Annualized rental income (3)

 

$

805,003

 

$

47,010

 

$

70,535

 

$

79,381

 

$

608,077

 

Percent

 

100.0

%

5.8

%

8.8

%

9.9

%

75.5

%


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

(2)             Sq. ft. is pursuant to signed leases as of 6/30/2006, 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 6/30/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

We define our major markets as markets which currently, or during either of the last two quarters, 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.

36




 

HRPT Properties Trust

Supplemental Operating and Financial Data

June 30, 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

 

Cumulative %
of Annualized
Rental Income
Expiring

 

2006

 

2,621

 

4.8

%

$

47,010

 

5.8

%

5.8

%

2007

 

3,932

 

7.2

%

70,535

 

8.8

%

14.6

%

2008

 

4,516

 

8.3

%

79,381

 

9.9

%

24.5

%

2009

 

3,586

 

6.6

%

64,494

 

8.0

%

32.5

%

2010

 

5,125

 

9.4

%

90,957

 

11.3

%

43.8

%

2011

 

4,768

 

8.8

%

84,071

 

10.4

%

54.2

%

2012

 

3,458

 

6.4

%

70,803

 

8.8

%

63.0

%

2013

 

2,162

 

4.0

%

40,979

 

5.1

%

68.1

%

2014

 

2,315

 

4.3

%

38,662

 

4.8

%

72.9

%

2015

 

2,408

 

4.4

%

51,835

 

6.4

%

79.3

%

2016 and thereafter

 

19,414

 

35.8

%

166,276

 

20.7

%

100.0

%

Total

 

54,305

 

100.0

%

$

805,003

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average remaining lease term (in years)

 

9.6

 

 

 

6.6

 

 

 

 

 


(1)             Sq. ft. is pursuant to signed leases as of 6/30/2006, 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 6/30/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization and rents from properties classified in discontinued operations.

37