EX-99.2 3 a06-23155_1ex99d2.htm EX-99

Exhibit 99.2

HRPT PROPERTIES TRUST

Third 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

 

Debt Summary

 

20

 

Debt Maturity Schedule

 

21

 

Leverage Ratios, Coverage Ratios and Public Debt Covenants

 

22

 

Tenant Improvements, Leasing Costs and Capital Improvements

 

23

 

2006 Acquisitions and Dispositions Information

 

24

 

2006 Financing Activities

 

25

 

 

 

 

PORTFOLIO AND LEASING INFORMATION

 

 

 

 

 

 

 

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

 

27

 

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

 

28

 

Summary of Properties by Major Market

 

29

 

Leasing Summary

 

30

 

Occupancy and Leasing Analysis by Property Type and Major Market (3 Months Ended 9/30/2006)

 

31

 

Occupancy and Leasing Analysis by Property Type and Major Market (9 Months Ended 9/30/2006)

 

32

 

Tenants Representing 1% or More of Total Rent

 

33

 

Three Year Lease Expiration Schedule by Property Type

 

34

 

Three Year Lease Expiration Schedule by Major Market

 

35

 

Portfolio Lease Expiration Schedule

 

36

 

2




FORWARD LOOKING STATEMENTS

THIS SUPPLEMENTAL OPERATING AND FINANCIAL DATA REPORT CONTAINS STATEMENTS AND IMPLICATIONS WHICH CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS.  ALSO, WHENEVER WE USE WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE” OR SIMILAR EXPRESSIONS, WE ARE MAKING FORWARD LOOKING STATEMENTS.  THESE FORWARD LOOKING STATEMENTS ARE BASED UPON OUR PRESENT INTENT, BELIEFS OR 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.

IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN OUR FORWARD LOOKING STATEMENTS ARE:

·                     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,

·                     CONTINGENCIES IN OUR COMMITTED ACQUISITIONS AND SALES MAY CAUSE THESE TRANSACTIONS NOT TO OCCUR OR TO BE DELAYED,

·                     WE MAY BE UNABLE TO IDENTIFY PROPERTIES WHICH WE WANT TO BUY OR TO NEGOTIATE ACCEPTABLE PURCHASE PRICES, AND

OTHER RISKS MAY ADVERSELY IMPACT US, AS DESCRIBED MORE FULLY IN OUR ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2005, UNDER “ITEM 1A. RISK FACTORS.”

YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.

EXCEPT AS REQUIRED BY LAW, WE UNDERTAKE NO OBLIGATION TO 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

September 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 September 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 September 30, 2006, RMR managed one of the largest portfolios of publicly owned real estate in the United States, including over 1,000 properties with nearly 91 million square feet located in 43 states, Washington, DC, Puerto Rico and Ontario, Canada.  RMR has approximately 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 over $13 billion as of September 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

Preferred Stock Series D — HRP-D

Senior Unsecured Debt Ratings:

Moody’s — Baa2

Standard & Poor’s — BBB

Portfolio Data (as of 9/30/06) (1):

Total properties

 

487

 

Total sq. ft. (000s)

 

58,070

 

Percent leased

 

93.4

%

 

Portfolio Concentration by Sq. Ft. (as of 9/30/06) (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 (Q3 2006) (1) (2):

 

 

Office

 

Industrial

 

Total

 

CBD

 

32.8

%

0.2

%

33.0

%

Suburban

 

49.2

%

17.8

%

67.0

%

Total

 

82.0

%

18.0

%

100.0

%

 

Portfolio Concentration by Major Market (1):

 

 

9/30/06

 

Q3 2006

 

 

 

Sq. Ft.

 

NOI (2)

 

Metro Philadelphia, PA

 

9.4

%

13.9

%

Oahu, HI

 

30.9

%

10.9

%

Metro Washington, DC

 

4.6

%

10.1

%

Metro Boston, MA

 

4.7

%

8.1

%

Southern California

 

2.5

%

7.0

%

Metro Austin, TX

 

4.8

%

4.2

%

Other Markets

 

43.1

%

45.8

%

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

September 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

September 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

Citigroup

Philip Martin

Michael Bilerman

(312) 469-7485

(212) 816-1383

 

 

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

(704) 383-6441

 

 

Rating Agencies

 

 

Moody’s Investors Service

Standard and Poor’s

Lori Marks

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

September 30, 2006

KEY FINANCIAL DATA

(amounts in thousands, except per share data)

 

 

As of and For the Three Months Ended

 

 

 

9/30/2006

 

6/30/2006

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (at end of period)

 

210,037

 

209,986

 

209,861

 

209,861

 

209,861

 

Preferred shares outstanding (at end of period)

 

18,000

 

18,000

 

18,000

 

20,000

 

20,000

 

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

 

209,992

 

209,968

 

209,861

 

209,861

 

201,459

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

Price at end of period

 

$

11.95

 

$

11.56

 

$

11.74

 

$

10.35

 

$

12.41

 

High during period

 

$

12.22

 

$

11.80

 

$

12.09

 

$

12.51

 

$

13.25

 

Low during period

 

$

10.80

 

$

10.50

 

$

10.30

 

$

10.18

 

$

11.75

 

Annualized dividends paid per share

 

$

0.84

 

$

0.84

 

$

0.84

 

$

0.84

 

$

0.84

 

Annualized dividend yield (at end of period)

 

7.0

%

7.3

%

7.2

%

8.1

%

6.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Market Capitalization:

 

 

 

 

 

 

 

 

 

 

 

Total debt (book value)

 

$

2,639,621

 

$

2,611,077

 

$

2,513,246

 

$

2,520,156

 

$

2,333,543

 

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

 

464,160

 

458,220

 

467,940

 

514,240

 

523,880

 

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

 

2,509,942

 

2,427,438

 

2,463,768

 

2,172,061

 

2,604,375

 

Total market capitalization

 

$

5,613,723

 

$

5,496,735

 

$

5,444,954

 

$

5,206,457

 

$

5,461,798

 

Total debt / total market capitalization

 

47.0

%

47.5

%

46.2

%

48.4

%

42.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Book Capitalization:

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

$

2,639,621

 

$

2,611,077

 

$

2,513,246

 

$

2,520,156

 

$

2,333,543

 

Plus: total stockholders’ equity

 

2,641,881

 

2,663,253

 

2,683,827

 

2,645,486

 

2,657,350

 

Total book capitalization

 

$

5,281,502

 

$

5,274,330

 

$

5,197,073

 

$

5,165,642

 

$

4,990,893

 

Total debt / total book capitalization

 

50.0

%

49.5

%

48.4

%

48.8

%

46.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,454,778

 

$

5,441,519

 

$

5,355,189

 

$

5,327,167

 

$

5,154,048

 

Total liabilities

 

$

2,812,897

 

$

2,778,266

 

$

2,671,362

 

$

2,681,681

 

$

2,496,698

 

Gross book value of real estate assets (2)

 

$

5,773,686

 

$

5,756,687

 

$

5,615,904

 

$

5,398,394

 

$

5,210,972

 

Equity investments in former subsidiaries (book value)

 

$

 

$

 

$

 

$

194,297

 

$

205,498

 

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

 

45.7

%

45.4

%

44.8

%

45.1

%

43.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Selected Income Statement Data (3):

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

202,542

 

$

197,957

 

$

189,559

 

$

186,066

 

$

183,372

 

EBITDA (4)

 

$

114,429

 

$

113,769

 

$

119,562

 

$

114,683

 

$

115,921

 

Property net operating income (NOI) (5)

 

$

122,323

 

$

121,998

 

$

117,756

 

$

112,328

 

$

114,005

 

NOI margin (6)

 

60.4

%

61.6

%

62.1

%

60.4

%

62.2

%

Net income

 

$

31,354

 

$

31,514

 

$

149,835

 

$

43,706

 

$

38,297

 

Preferred distributions

 

$

(9,234

)

$

(9,234

)

$

(11,508

)

$

(11,500

)

$

(11,500

)

Excess redemption price paid over carrying value of preferred shares

 

$

 

$

 

$

(6,914

)

$

 

$

 

Net income available for common shareholders

 

$

22,120

 

$

22,280

 

$

131,413

 

$

32,206

 

$

26,797

 

Funds from operations (FFO) (7)

 

$

71,260

 

$

71,915

 

$

76,248

 

$

74,055

 

$

76,438

 

FFO available for common shareholders (7)

 

$

62,026

 

$

62,681

 

$

64,740

 

$

62,555

 

$

64,938

 

Common distributions paid

 

$

44,097

 

$

44,095

 

$

44,071

 

$

44,070

 

$

41,963

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

0.11

 

$

0.11

 

$

0.63

 

$

0.15

 

$

0.13

 

FFO available for common shareholders (7)

 

$

0.30

 

$

0.30

 

$

0.31

 

$

0.30

 

$

0.32

 

Common distributions paid

 

$

0.21

 

$

0.21

 

$

0.21

 

$

0.21

 

$

0.21

 

FFO payout ratio

 

70.0

%

70.0

%

67.7

%

70.0

%

65.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

EBITDA (4) / interest expense

 

2.7

x

2.7

x

2.9

x

3.0

x

3.3

x

EBITDA (4) / interest expense and preferred distributions

 

2.2

x

2.2

x

2.3

x

2.3

x

2.5

x

 


(1)    On 9/30/06, HRPT had 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 writedowns, if any.

(3)    Results as of and for the three months ended 3/31/2006, 6/30/06 and 9/30/06 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

September 30, 2006

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

 

 

As of
September 30,
2006

 

As of 
December 31, 
2005

 

 

 

 

 

(audited)

 

ASSETS

 

 

 

 

 

Real estate properties:

 

 

 

 

 

Land

 

$

1,112,035

 

$

1,080,563

 

Buildings and improvements

 

4,472,412

 

4,144,011

 

 

 

5,584,447

 

5,224,574

 

Accumulated depreciation

 

(639,132

)

(548,460

)

 

 

4,945,315

 

4,676,114

 

Properties held for sale

 

2,725

 

10,779

 

Acquired real estate leases

 

164,155

 

161,787

 

Equity investments in former subsidiaries

 

 

194,297

 

Cash and cash equivalents

 

33,458

 

19,445

 

Restricted cash

 

22,775

 

18,348

 

Rents receivable, net of allowance for doubtful accounts of $3,696 and $3,767, respectively

 

165,691

 

145,385

 

Other assets, net

 

120,659

 

101,012

 

Total assets

 

$

5,454,778

 

$

5,327,167

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Revolving credit facility

 

$

310,000

 

$

256,000

 

Senior unsecured debt, net

 

1,940,878

 

1,889,991

 

Mortgage notes payable, net

 

388,743

 

374,165

 

Accounts payable and accrued expenses

 

75,796

 

80,125

 

Acquired real estate lease obligations

 

42,472

 

38,987

 

Rent collected in advance

 

20,211

 

17,858

 

Security deposits

 

15,154

 

13,679

 

Due to affiliates

 

19,643

 

10,876

 

Total liabilities

 

2,812,897

 

2,681,681

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

Preferred shares of beneficial interest, $0.01 par value:

 

 

 

 

 

50,000,000 shares authorized;

 

 

 

 

 

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

 

 

193,086

 

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

 

289,849

 

289,849

 

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

 

145,015

 

 

Common shares of beneficial interest, $0.01 par value:

 

 

 

 

 

250,000,000 shares authorized; 210,036,590 and 209,860,625 shares issued and outstanding, respectively

 

2,100

 

2,099

 

Additional paid in capital

 

2,774,270

 

2,779,159

 

Cumulative net income

 

1,665,477

 

1,452,774

 

Cumulative common distributions

 

(2,027,081

)

(1,894,818

)

Cumulative preferred distributions

 

(207,749

)

(176,663

)

Total shareholders’ equity

 

2,641,881

 

2,645,486

 

Total liabilities and shareholders’ equity

 

$

5,454,778

 

$

5,327,167

 

 

10




HRPT Properties Trust

Supplemental Operating and Financial Data

September 30, 2006

CONSOLIDATED STATEMENTS OF INCOME

(amounts in thousands, except per share data)

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

9/30/2006

 

9/30/2005

 

9/30/2006

 

9/30/2005

 

 

 

 

 

 

 

 

 

 

 

Rental income (1)

 

$

202,542

 

$

182,894

 

$

590,058

 

$

523,262

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Operating expenses

 

80,219

 

69,173

 

227,981

 

196,014

 

Depreciation and amortization

 

41,064

 

34,490

 

119,109

 

100,417

 

General and administrative

 

8,513

 

9,102

 

24,926

 

23,430

 

Total expenses

 

129,796

 

112,765

 

372,016

 

319,861

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

72,746

 

70,129

 

218,042

 

203,401

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

573

 

408

 

2,118

 

1,289

 

Interest expense (including amortization of note discounts and premiums and deferred financing fees of $1,105, $392, $3,348 and $1,725, respectively)

 

(43,169

)

(35,628

)

(126,317

)

(105,967

)

Loss on early extinguishment of debt

 

 

(168

)

(1,659

)

(168

)

Equity in earnings of equity investments (2)

 

 

3,494

 

3,136

 

9,940

 

Gain on sale of equity investments (2)

 

 

 

116,287

 

 

Gain on issuance of shares by equity investees (2)

 

 

 

 

4,708

 

Income from continuing operations

 

30,150

 

38,235

 

211,607

 

113,203

 

Income (loss) from discontinued operations

 

32

 

62

 

(76

)

483

 

Gain on sale of properties

 

1,172

 

 

1,172

 

7,592

 

Net income

 

31,354

 

38,297

 

212,703

 

121,278

 

Preferred distributions

 

(9,234

)

(11,500

)

(29,976

)

(34,500

)

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

 

 

 

(6,914

)

 

Net income available for common shareholders

 

$

22,120

 

$

26,797

 

$

175,813

 

$

86,778

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

209,992

 

201,459

 

209,941

 

193,778

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per common share:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.10

 

$

0.13

 

$

0.83

 

$

0.41

 

Income (loss) from discontinued operations

 

$

 

$

 

$

 

$

 

Net income available for common shareholders

 

$

0.11

 

$

0.13

 

$

0.84

 

$

0.45

 

 

 

 

 

 

 

 

 

 

 

Additional Data:

 

 

 

 

 

 

 

 

 

General and administrative expenses / rental income

 

4.20

%

4.98

%

4.22

%

4.48

%

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

 

0.16

%

0.18

%

0.46

%

0.45

%

 

 

 

 

 

 

 

 

 

 

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

 

$

7,835

 

$

9,006

 

$

17,892

 

$

21,256

 

Lease value amortization (FAS 141) (1)

 

$

(2,427

)

$

(1,544

)

$

(7,909

)

$

(5,011

)

Lease termination fees included in rental income

 

$

50

 

$

3,100

 

$

550

 

$

3,535

 

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 accounted 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 our 4,000 shares of Hospitality Properties 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 our 7,711 shares of Senior Housing in an underwritten public offering for $135,709 ($133,064 net of commissions and other expenses) and we recognized a gain of $39,066.

(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

September 30, 2006

CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

9/30/2006

 

9/30/2005

 

9/30/2006

 

9/30/2005

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

31,354

 

$

38,297

 

$

212,703

 

$

121,278

 

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

 

 

 

 

 

 

 

 

 

Depreciation

 

33,155

 

27,928

 

96,452

 

82,806

 

Amortization of note discounts and premiums and deferred financing fees

 

1,105

 

392

 

3,348

 

1,725

 

Amortization of acquired real estate leases

 

7,527

 

5,970

 

22,495

 

16,625

 

Other amortization

 

2,820

 

2,240

 

8,191

 

6,484

 

Loss on early extinguishment of debt

 

 

 

1,659

 

 

Equity in earnings of equity investments

 

 

(3,494

)

(3,136

)

(9,940

)

Gain on sale of equity investments

 

 

 

(116,287

)

 

Gain on issuance of shares by equity investees

 

 

 

 

(4,708

)

Distributions of earnings from equity investments

 

 

3,494

 

3,136

 

9,940

 

Gain on sale of properties

 

(1,172

)

 

(1,172

)

(7,592

)

Change in assets and liabilities:

 

 

 

 

 

 

 

 

 

(Increase) decrease in restricted cash

 

(6,844

)

5,187

 

(4,427

)

5,162

 

Increase in rents receivable and other assets

 

(30,400

)

(25,397

)

(44,349

)

(54,518

)

Decrease in accounts payable and accrued expenses

 

(3,933

)

(8,144

)

(4,329

)

(2,715

)

(Decrease) increase in rent collected in advance

 

(323

)

2,012

 

2,353

 

4,852

 

Increase in security deposits

 

73

 

818

 

1,475

 

1,759

 

Increase in due to affiliates

 

12,098

 

14,360

 

8,767

 

9,396

 

Cash provided by operating activities

 

45,460

 

63,663

 

186,879

 

180,554

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Real estate acquisitions and improvements

 

(27,080

)

(158,252

)

(366,370

)

(411,277

)

Distributions in excess of earnings from equity investments

 

 

2,157

 

2,251

 

7,014

 

Proceeds from sale of properties

 

6,231

 

 

6,231

 

20,078

 

Proceeds from sale of equity investments

 

 

 

308,333

 

 

Cash used for investing activities

 

(20,849

)

(156,095

)

(49,555

)

(384,185

)

 

 

 

 

 

 

 

 

 

 

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

 

 

124,957

 

 

383,974

 

Proceeds from borrowings

 

80,000

 

242,000

 

1,044,000

 

622,000

 

Payments on borrowings

 

(51,740

)

(218,401

)

(945,950

)

(642,248

)

Deferred financing fees

 

(1,180

)

(68

)

(3,027

)

(4,881

)

Distributions to common shareholders

 

(44,097

)

(41,963

)

(132,263

)

(121,161

)

Distributions to preferred shareholders

 

(9,235

)

(11,500

)

(31,086

)

(34,500

)

Cash (used for) provided by financing activities

 

(26,252

)

95,025

 

(123,311

)

203,184

 

 

 

 

 

 

 

 

 

 

 

(Decrease) increase in cash and cash equivalents

 

(1,641

)

2,593

 

14,013

 

(447

)

Cash and cash equivalents at beginning of period

 

35,099

 

18,921

 

19,445

 

21,961

 

Cash and cash equivalents at end of period

 

$

33,458

 

$

21,514

 

$

33,458

 

$

21,514

 

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Interest paid

 

$

52,621

 

$

48,595

 

$

131,809

 

$

120,666

 

 

 

 

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

 

 

 

 

Real estate acquisitions

 

$

 

$

 

$

(20,585

)

$

 

 

 

 

 

 

 

 

 

 

 

Non-cash financing activities:

 

 

 

 

 

 

 

 

 

Issuance of common shares

 

$

606

 

$

512

 

$

2,026

 

$

565

 

Assumption of mortgage notes payable

 

 

 

20,585

 

 

 

12




 

HRPT Properties Trust

Supplemental Operating and Financial Data

September 30, 2006

CALCULATION OF EBITDA

(amounts in thousands)

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

9/30/2006

 

9/30/2005

 

9/30/2006

 

9/30/2005

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

31,354

 

$

38,297

 

$

212,703

 

$

121,278

 

Plus: interest expense

 

43,169

 

35,628

 

126,317

 

105,967

 

Plus: income taxes

 

 

 

 

 

Plus: depreciation and amortization

 

41,078

 

34,595

 

119,230

 

100,905

 

Plus: loss on early extinguishment of debt

 

 

168

 

1,659

 

168

 

Less: gain on sale of properties

 

(1,172

)

 

(1,172

)

(7,592

)

Less: gain on sale of equity investments (1)

 

 

 

(116,287

)

 

Less: gain on issuance of shares by equity investees (1)

 

 

 

 

(4,708

)

Less: equity in earnings of equity investments (1)

 

 

(3,494

)

(3,136

)

(9,940

)

Plus: EBITDA from equity investments (1)

 

 

10,727

 

8,446

 

28,395

 

EBITDA

 

$

114,429

 

$

115,921

 

$

347,760

 

$

334,473

 

 


(1)

 

We accounted for our former common share investments in Senior Housing and Hospitality Properties using the equity method of accounting. In March 2006, we sold all our 4,000 shares of Hospitality Properties 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 our 7,711 shares of Senior Housing in an underwritten public offering for $135,709 ($133,064 net of commissions and other expenses) and we recognized a gain of $39,066.

 

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 performances 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

September 30, 2006

CALCULATION AND RECONCILIATION OF PROPERTY NET OPERATING INCOME (NOI)

(amounts in thousands)

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

9/30/2006

 

9/30/2005

 

9/30/2006

 

9/30/2005

 

 

 

 

 

 

 

 

 

 

 

Calculation of NOI (1):

 

 

 

 

 

 

 

 

 

Rental income

 

$

202,542

 

$

182,894

 

$

590,058

 

$

523,262

 

Operating expenses

 

(80,219

)

(69,173

)

(227,981

)

(196,014

)

Property net operating income (NOI)

 

$

122,323

 

$

113,721

 

$

362,077

 

$

327,248

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of NOI to Net Income Available for Common Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property net operating income

 

$

122,323

 

$

113,721

 

$

362,077

 

$

327,248

 

Depreciation and amortization

 

(41,064

)

(34,490

)

(119,109

)

(100,417

)

General and administrative

 

(8,513

)

(9,102

)

(24,926

)

(23,430

)

Operating income

 

72,746

 

70,129

 

218,042

 

203,401

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

573

 

408

 

2,118

 

1,289

 

Interest expense

 

(43,169

)

(35,628

)

(126,317

)

(105,967

)

Loss on early extinguishment of debt

 

 

(168

)

(1,659

)

(168

)

Equity in earnings of equity investments (2)

 

 

3,494

 

3,136

 

9,940

 

Gain on sale of equity investments (2)

 

 

 

116,287

 

 

Gain on issuance of shares by equity investees (2)

 

 

 

 

4,708

 

Income from continuing operations

 

30,150

 

38,235

 

211,607

 

113,203

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations

 

32

 

62

 

(76

)

483

 

Gain on sale of properties

 

1,172

 

 

1,172

 

7,592

 

Net income

 

31,354

 

38,297

 

212,703

 

121,278

 

 

 

 

 

 

 

 

 

 

 

Preferred distributions

 

(9,234

)

(11,500

)

(29,976

)

(34,500

)

Excess redemption price paid over carrying value of preferred shares

 

 

 

(6,914

)

 

Net income available for common shareholders

 

$

22,120

 

$

26,797

 

$

175,813

 

$

86,778

 

 


(1)             Excludes properties classified in discontinued operations.

(2)             We accounted for our former common share investments in Senior Housing and Hospitality Properties using the equity method of accounting.  In March 2006, we sold all our 4,000 shares of Hospitality Properties 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 our 7,711 shares of Senior Housing in an underwritten public offering for $135,709 ($133,064 net of commissions and other expenses) and we recognized a gain of $39,066.

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 our properties’ 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

September 30, 2006

CALCULATION OF FUNDS FROM OPERATIONS (FFO)

(amounts in thousands, except per share data)

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

9/30/2006

 

9/30/2005

 

9/30/2006

 

9/30/2005

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

31,354

 

$

38,297

 

$

212,703

 

$

121,278

 

Plus:  depreciation and amortization

 

41,078

 

34,595

 

119,230

 

100,905

 

Loss on early extinguishment of debt:

 

 

 

 

 

 

 

 

 

Add:  amount included in expenses

 

 

168

 

1,659

 

168

 

Less:  portion settled in cash

 

 

(168

)

 

(168

)

Less:  gain on sale of properties

 

(1,172

)

 

(1,172

)

(7,592

)

Less:  gain on sale of equity investments (1)

 

 

 

(116,287

)

 

Less:  gain on issuance of shares by equity investees (1)

 

 

 

 

(4,708

)

Less:  equity in earnings of equity investments (1)

 

 

(3,494

)

(3,136

)

(9,940

)

Plus:  FFO from equity investments (1)

 

 

7,040

 

6,426

 

21,076

 

FFO

 

71,260

 

76,438

 

219,423

 

221,019

 

Less:  preferred distributions

 

(9,234

)

(11,500

)

(29,976

)

(34,500

)

FFO available for common shareholders

 

$

62,026

 

$

64,938

 

$

189,447

 

$

186,519

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

209,992

 

201,459

 

209,941

 

193,778

 

 

 

 

 

 

 

 

 

 

 

FFO available for common shareholders per share

 

$

0.30

 

$

0.32

 

$

0.90

 

$

0.96

 

 


(1)             We accounted for our former common share investments in Senior Housing and Hospitality Properties using the equity method of accounting.  In March 2006, we sold all our 4,000 shares of Hospitality Properties 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 our 7,711 shares of Senior Housing in an underwritten public offering for $135,709 ($133,064 net of commissions and other expenses) and we recognized a gain of $39,066.

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 performances 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 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

September 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 Nine Months Ended (1)

 

 

 

9/30/2006

 

9/30/2005

 

9/30/2006

 

9/30/2005

 

 

 

 

 

 

 

 

 

 

 

Number of Properties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

348

 

294

 

348

 

294

 

Industrial

 

139

 

135

 

139

 

135

 

Total

 

487

 

429

 

487

 

429

 

 

 

 

 

 

 

 

 

 

 

CBD

 

50

 

50

 

50

 

50

 

Suburban

 

437

 

379

 

437

 

379

 

Total

 

487

 

429

 

487

 

429

 

 

 

 

 

 

 

 

 

 

 

Square Feet (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

33,944

 

30,262

 

33,944

 

30,262

 

Industrial

 

24,126

 

23,768

 

24,126

 

23,768

 

Total

 

58,070

 

54,030

 

58,070

 

54,030

 

 

 

 

 

 

 

 

 

 

 

CBD

 

11,493

 

11,489

 

11,493

 

11,489

 

Suburban

 

46,577

 

42,541

 

46,577

 

42,541

 

Total

 

58,070

 

54,030

 

58,070

 

54,030

 

 

 

 

 

 

 

 

 

 

 

Percent Leased (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

91.1

%

91.9

%

91.1

%

91.9

%

Industrial

 

96.7

%

96.5

%

96.7

%

96.5

%

Total

 

93.4

%

93.9

%

93.4

%

93.9

%

 

 

 

 

 

 

 

 

 

 

CBD

 

91.8

%

92.7

%

91.8

%

92.7

%

Suburban

 

93.8

%

94.2

%

93.8

%

94.2

%

Total

 

93.4

%

93.9

%

93.4

%

93.9

%

 

 

 

 

 

 

 

 

 

 

Rental Income (4):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

$

172,669

 

$

154,980

 

$

504,358

 

$

445,700

 

Industrial

 

29,873

 

27,914

 

85,700

 

77,562

 

Total

 

$

202,542

 

$

182,894

 

$

590,058

 

$

523,262

 

 

 

 

 

 

 

 

 

 

 

CBD

 

$

72,673

 

$

72,816

 

$

215,810

 

$

208,860

 

Suburban

 

129,869

 

110,078

 

374,248

 

314,402

 

Total

 

$

202,542

 

$

182,894

 

$

590,058

 

$

523,262

 

 

 

 

 

 

 

 

 

 

 

Property Net Operating Income (NOI) (5):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

$

100,389

 

$

93,971

 

$

299,480

 

$

272,787

 

Industrial

 

21,934

 

19,750

 

62,597

 

54,461

 

Total

 

$

122,323

 

$

113,721

 

$

362,077

 

$

327,248

 

 

 

 

 

 

 

 

 

 

 

CBD

 

$

40,350

 

$

41,424

 

$

120,855

 

$

119,950

 

Suburban

 

81,973

 

72,297

 

241,222

 

207,298

 

Total

 

$

122,323

 

$

113,721

 

$

362,077

 

$

327,248

 

 

 

 

 

 

 

 

 

 

 

NOI Margin (6):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

58.1

%

60.6

%

59.4

%

61.2

%

Industrial

 

73.4

%

70.8

%

73.0

%

70.2

%

Total

 

60.4

%

62.2

%

61.4

%

62.5

%

 

 

 

 

 

 

 

 

 

 

CBD

 

55.5

%

56.9

%

56.0

%

57.4

%

Suburban

 

63.1

%

65.7

%

64.5

%

65.9

%

Total

 

60.4

%

62.2

%

61.4

%

62.5

%

 


(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

September 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 Nine Months Ended (1)

 

 

 

9/30/2006

 

9/30/2005

 

9/30/2006

 

9/30/2005

 

Number of Properties:

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

21

 

21

 

21

 

21

 

Oahu, HI

 

56

 

53

 

56

 

53

 

Metro Washington, DC

 

20

 

20

 

20

 

20

 

Metro Boston, MA

 

36

 

36

 

36

 

36

 

Southern California

 

24

 

24

 

24

 

24

 

Metro Austin, TX

 

26

 

26

 

26

 

26

 

Other markets

 

304

 

249

 

304

 

249

 

Total

 

487

 

429

 

487

 

429

 

 

 

 

 

 

 

 

 

 

 

Square Feet (2):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

5,453

 

5,454

 

5,453

 

5,454

 

Oahu, HI

 

17,929

 

17,879

 

17,929

 

17,879

 

Metro Washington, DC

 

2,645

 

2,645

 

2,645

 

2,645

 

Metro Boston, MA

 

2,740

 

2,738

 

2,740

 

2,738

 

Southern California

 

1,444

 

1,444

 

1,444

 

1,444

 

Metro Austin, TX

 

2,808

 

2,806

 

2,808

 

2,806

 

Other markets

 

25,051

 

21,064

 

25,051

 

21,064

 

Total

 

58,070

 

54,030

 

58,070

 

54,030

 

 

 

 

 

 

 

 

 

 

 

Percent Leased (3):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

90.6

%

93.0

%

90.6

%

93.0

%

Oahu, HI

 

97.3

%

97.6

%

97.3

%

97.6

%

Metro Washington, DC

 

96.6

%

95.3

%

96.6

%

95.3

%

Metro Boston, MA

 

98.7

%

96.8

%

98.7

%

96.8

%

Southern California

 

97.8

%

98.0

%

97.8

%

98.0

%

Metro Austin, TX

 

93.9

%

88.6

%

93.9

%

88.6

%

Other markets

 

90.0

%

90.9

%

90.0

%

90.9

%

Total

 

93.4

%

93.9

%

93.4

%

93.9

%

 

 

 

 

 

 

 

 

 

 

Rental Income (4):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

$

31,784

 

$

33,761

 

$

95,277

 

$

100,490

 

Oahu, HI

 

16,369

 

14,462

 

45,580

 

36,724

 

Metro Washington, DC

 

19,972

 

19,741

 

59,182

 

57,461

 

Metro Boston, MA

 

15,517

 

15,093

 

45,545

 

43,157

 

Southern California

 

12,323

 

12,457

 

36,128

 

35,525

 

Metro Austin, TX

 

10,752

 

9,637

 

31,705

 

29,109

 

Other markets

 

95,825

 

77,743

 

276,641

 

220,796

 

Total

 

$

202,542

 

$

182,894

 

$

590,058

 

$

523,262

 

 

 

 

 

 

 

 

 

 

 

Property Net Operating Income (NOI) (5):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

$

17,025

 

$

18,641

 

$

51,096

 

$

55,509

 

Oahu, HI

 

13,274

 

11,568

 

37,033

 

29,431

 

Metro Washington, DC

 

12,333

 

12,651

 

37,068

 

37,298

 

Metro Boston, MA

 

9,917

 

10,074

 

29,920

 

29,268

 

Southern California

 

8,522

 

8,630

 

25,084

 

24,093

 

Metro Austin, TX

 

5,197

 

4,352

 

15,807

 

13,655

 

Other markets

 

56,055

 

47,805

 

166,069

 

137,994

 

Total

 

$

122,323

 

$

113,721

 

$

362,077

 

$

327,248

 

 

 

 

 

 

 

 

 

 

 

NOI Margin (6):

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

53.6

%

55.2

%

53.6

%

55.2

%

Oahu, HI

 

81.1

%

80.0

%

81.2

%

80.1

%

Metro Washington, DC

 

61.8

%

64.1

%

62.6

%

64.9

%

Metro Boston, MA

 

63.9

%

66.7

%

65.7

%

67.8

%

Southern California

 

69.2

%

69.3

%

69.4

%

67.8

%

Metro Austin, TX

 

48.3

%

45.2

%

49.9

%

46.9

%

Other markets

 

58.5

%

61.5

%

60.0

%

62.5

%

Total

 

60.4

%

62.2

%

61.4

%

62.5

%

 


(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

September 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 Nine Months Ended (2)

 

 

 

9/30/2006

 

9/30/2005

 

9/30/2006

 

9/30/2005

 

Office:

 

 

 

 

 

 

 

 

 

Properties

 

275

 

275

 

273

 

273

 

Total sq. ft.

 

28,972

 

28,972

 

28,270

 

28,270

 

Percent leased (3)

 

91.3

%

92.3

%

91.1

%

92.2

%

Rental income (4)

 

$

151,967

 

$

153,746

 

$

441,288

 

$

439,119

 

Property net operating income (NOI) (5)

 

$

88,559

 

$

93,273

 

$

261,915

 

$

268,781

 

NOI % growth

 

-5.1

%

 

 

-2.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Industrial:

 

 

 

 

 

 

 

 

 

Properties

 

135

 

135

 

94

 

94

 

Total sq. ft.

 

23,778

 

23,778

 

15,476

 

15,476

 

Percent leased (3)

 

96.8

%

96.4

%

97.9

%

97.6

%

Rental income (4)

 

$

29,514

 

$

27,639

 

$

75,702

 

$

74,139

 

Property net operating income (NOI) (5)

 

$

21,611

 

$

19,482

 

$

54,189

 

$

51,402

 

NOI % growth

 

10.9

%

 

 

5.4

%

 

 

 

 

 

 

 

 

 

 

 

 

CBD:

 

 

 

 

 

 

 

 

 

Properties

 

50

 

50

 

49

 

49

 

Total sq. ft.

 

11,493

 

11,493

 

10,862

 

10,862

 

Percent leased (3)

 

91.8

%

92.7

%

91.5

%

92.5

%

Rental income (4)

 

$

72,673

 

$

72,815

 

$

206,102

 

$

203,868

 

Property net operating income (NOI) (5)

 

$

40,350

 

$

41,424

 

$

115,080

 

$

116,872

 

NOI % growth

 

-2.6

%

 

 

-1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Suburban:

 

 

 

 

 

 

 

 

 

Properties

 

360

 

360

 

318

 

318

 

Total sq. ft.

 

41,257

 

41,257

 

32,884

 

32,884

 

Percent leased (3)

 

94.3

%

94.6

%

94.2

%

94.7

%

Rental income (4)

 

$

108,808

 

$

108,570

 

$

310,888

 

$

309,390

 

Property net operating income (NOI) (5)

 

$

69,820

 

$

71,331

 

$

201,024

 

$

203,311

 

NOI % growth

 

-2.1

%

 

 

-1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

Properties

 

410

 

410

 

367

 

367

 

Total sq. ft.

 

52,750

 

52,750

 

43,746

 

43,746

 

Percent leased (3)

 

93.8

%

94.2

%

93.5

%

94.1

%

Rental income (4)

 

$

181,481

 

$

181,385

 

$

516,990

 

$

513,258

 

Property net operating income (NOI) (5)

 

$

110,170

 

$

112,755

 

$

316,104

 

$

320,183

 

NOI % growth

 

-2.3

%

 

 

-1.3

%

 

 

 


(1)             Based on properties owned continuously since 7/1/2005 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

September 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 Nine Months Ended (2)

 

 

 

9/30/2006

 

9/30/2005

 

9/30/2006

 

9/30/2005

 

Metro Philadelphia, PA:

 

 

 

 

 

 

 

 

 

Properties

 

21

 

21

 

21

 

21

 

Total sq. ft.

 

5,453

 

5,453

 

5,453

 

5,453

 

Percent leased (3)

 

90.6

%

93.0

%

90.6

%

93.0

%

Rental income (4)

 

$

31,784

 

$

33,761

 

$

95,277

 

$

100,490

 

Property net operating income (NOI) (5)

 

$

17,025

 

$

18,641

 

$

51,096

 

$

55,509

 

NOI % growth

 

-8.7

%

 

 

-8.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Oahu, HI:

 

 

 

 

 

 

 

 

 

Properties

 

53

 

53

 

12

 

12

 

Total sq. ft.

 

17,889

 

17,889

 

9,587

 

9,587

 

Percent leased (3)

 

97.5

%

97.5

%

99.8

%

99.2

%

Rental income (4)

 

$

16,377

 

$

14,188

 

$

36,255

 

$

33,301

 

Property net operating income (NOI) (5)

 

$

13,284

 

$

11,300

 

$

29,221

 

$

26,373

 

NOI % growth

 

17.6

%

 

 

10.8

%

 

 

 

 

 

 

 

 

 

 

 

 

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

%

95.3

%

96.6

%

95.3

%

Rental income (4)

 

$

19,972

 

$

19,741

 

$

59,182

 

$

57,461

 

Property net operating income (NOI) (5)

 

$

12,333

 

$

12,651

 

$

37,068

 

$

37,298

 

NOI % growth

 

-2.5

%

 

 

-0.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Metro Boston, MA:

 

 

 

 

 

 

 

 

 

Properties

 

36

 

36

 

36

 

36

 

Total sq. ft.

 

2,740

 

2,740

 

2,740

 

2,740

 

Percent leased (3)

 

98.7

%

96.8

%

98.7

%

96.8

%

Rental income (4)

 

$

15,517

 

$

15,093

 

$

45,545

 

$

43,157

 

Property net operating income (NOI) (5)

 

$

9,917

 

$

10,074

 

$

29,920

 

$

29,268

 

NOI % growth

 

-1.6

%

 

 

2.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Southern California:

 

 

 

 

 

 

 

 

 

Properties

 

24

 

24

 

24

 

24

 

Total sq. ft.

 

1,444

 

1,444

 

1,444

 

1,444

 

Percent leased (3)

 

97.8

%

98.0

%

97.8

%

98.0

%

Rental income (4)

 

$

12,323

 

$

12,457

 

$

36,128

 

$

35,525

 

Property net operating income (NOI) (5)

 

$

8,522

 

$

8,630

 

$

25,084

 

$

24,093

 

NOI % growth

 

-1.3

%

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Metro Austin, TX:

 

 

 

 

 

 

 

 

 

Properties

 

26

 

26

 

26

 

26

 

Total sq. ft.

 

2,808

 

2,808

 

2,808

 

2,808

 

Percent leased (3)

 

93.9

%

88.6

%

93.9

%

88.6

%

Rental income (4)

 

$

10,752

 

$

9,637

 

$

31,705

 

$

29,109

 

Property net operating income (NOI) (5)

 

$

5,197

 

$

4,352

 

$

15,807

 

$

13,655

 

NOI % growth

 

19.4

%

 

 

15.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Other Markets:

 

 

 

 

 

 

 

 

 

Properties

 

230

 

230

 

228

 

228

 

Total sq. ft.

 

19,771

 

19,771

 

19,069

 

19,069

 

Percent leased (3)

 

89.8

%

91.5

%

89.6

%

91.3

%

Rental income (4)

 

$

74,756

 

$

76,508

 

$

212,898

 

$

214,215

 

Property net operating income (NOI) (5)

 

$

43,892

 

$

47,107

 

$

127,908

 

$

133,987

 

NOI % growth

 

-6.8

%

 

 

-4.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

Properties

 

410

 

410

 

367

 

367

 

Total sq. ft.

 

52,750

 

52,750

 

43,746

 

43,746

 

Percent leased (3)

 

93.8

%

94.2

%

93.5

%

94.1

%

Rental income (4)

 

$

181,481

 

$

181,385

 

$

516,990

 

$

513,258

 

Property net operating income (NOI) (5)

 

$

110,170

 

$

112,755

 

$

316,104

 

$

320,183

 

NOI % growth

 

-2.3

%

 

 

-1.3

%

 

 

 


(1)             Based on properties owned continuously since 7/1/2005 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

September 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

%

$

16,130

 

2/1/2008

 

$

15,724

 

1.3

 

Secured debt  Two properties in Richland, WA

 

8.000

%

8.000

%

4,355

 

11/15/2008

 

1,004

 

2.1

 

Secured debt  One property in Buffalo, NY

 

5.170

%

5.170

%

3,549

 

1/1/2009

 

134

 

2.3

 

Secured debt  See note (2)

 

6.814

%

7.842

%

243,384

 

1/31/2011

 

225,547

 

4.3

 

Secured debt  One property in Bannockburn, IL

 

8.050

%

5.240

%

25,259

 

6/1/2012

 

22,719

 

5.7

 

Secured debt  Two properties in Rochester, NY

 

6.000

%

6.000

%

5,380

 

10/11/2012

 

4,507

 

6.0

 

Secured debt  One property in Macon, GA

 

4.950

%

6.280

%

14,006

 

5/11/2014

 

11,930

 

7.6

 

Secured debt  One property in Syracuse, NY

 

7.310

%

6.030

%

4,545

 

1/1/2022

 

 

15.3

 

Secured debt  One property in Syracuse, NY

 

7.850

%

6.030

%

2,209

 

1/1/2022

 

 

15.3

 

Secured debt  23 properties in Atlanta, GA (3)

 

8.500

%

5.070

%

29,117

 

4/11/2028

 

4,937

 

21.5

 

Secured debt  One property in Philadelphia, PA (4)

 

6.794

%

7.383

%

42,162

 

1/1/2029

 

2,478

 

22.3

 

Total / weighted average secured fixed rate debt

 

6.958

%

7.248

%

$

390,096

 

 

 

$

288,980

 

7.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving credit facility (LIBOR + 55 bps) (5)

 

5.585

%

5.585

%

$

310,000

 

8/22/2010

 

$

310,000

 

3.9

 

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

 

5.748

%

5.748

%

400,000

 

3/16/2011

 

400,000

 

4.5

 

Total / weighted average unsecured floating rate debt

 

5.677

%

5.677

%

$

710,000

 

 

 

$

710,000

 

4.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior notes due 2010

 

8.875

%

9.000

%

$

30,000

 

8/1/2010

 

$

30,000

 

3.8

 

Senior notes due 2010

 

8.625

%

8.770

%

20,000

 

10/1/2010

 

20,000

 

4.0

 

Senior notes due 2012

 

6.950

%

7.179

%

200,000

 

4/1/2012

 

200,000

 

5.5

 

Senior notes due 2013

 

6.500

%

6.693

%

200,000

 

1/15/2013

 

200,000

 

6.3

 

Senior notes due 2014

 

5.750

%

5.828

%

250,000

 

2/15/2014

 

250,000

 

7.4

 

Senior notes due 2015

 

6.400

%

6.601

%

200,000

 

2/15/2015

 

200,000

 

8.4

 

Senior notes due 2015

 

5.750

%

5.790

%

250,000

 

11/1/2015

 

250,000

 

9.1

 

Senior notes due 2016

 

6.250

%

6.470

%

400,000

 

8/15/2016

 

400,000

 

9.9

 

Total / weighted average unsecured fixed rate debt

 

6.312

%

6.473

%

$

1,550,000

 

 

 

$

1,550,000

 

7.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / weighted average unsecured debt

 

6.113

%

6.223

%

$

2,260,000

 

 

 

$

2,260,000

 

6.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / weighted average secured fixed rate debt

 

6.958

%

7.248

%

$

390,096

 

 

 

$

288,980

 

7.8

 

Total / weighted average unsecured floating rate debt

 

5.677

%

5.677

%

710,000

 

 

 

710,000

 

4.2

 

Total / weighted average unsecured fixed rate debt

 

6.312

%

6.473

%

1,550,000

 

 

 

1,550,000

 

7.9

 

Total / weighted average debt

 

6.237

%

6.373

%

$

2,650,096

(7)

 

 

$

2,548,980

 

6.9

 

 


(1)

 

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

(2)

 

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 9/30/06 is 5.9%. In August 2006, the revolving credit facility was amended to extend the maturity to 8/22/2010 and lower the interest payable on amounts drawn to LIBOR plus 55 bps.

(6)

 

The notes became prepayable, at par, on September 16, 2006. Interest rate is weighted average based on amounts outstanding during 2006. Interest rate on amounts outstanding at 9/30/06, is 6.0%.

(7)

 

Total debt as of 9/30/2006, net of unamortized premiums and discounts, equals $2,639,621.

 

20




 

HRPT Properties Trust

Supplemental Operating and Financial Data

September 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

 

$

2,659

 

$

 

$

 

$

2,659

 

7.0

%

2007

 

9,402

 

 

 

9,402

 

6.9

%

2008

 

25,507

 

 

 

25,507

 

7.0

%

2009

 

6,957

 

 

 

6,957

 

6.9

%

2010

 

7,319

 

310,000

 

50,000

 

367,319

 

6.0

%

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

 

$

390,096

 

$

710,000

 

$

1,550,000

 

$

2,650,096

 

6.2

%

Percent

 

14.7

%

26.8

%

58.5

%

100.0

%

 

 

 


(1)             Total debt as of 9/30/2006, net of unamortized premiums and discounts, equals $2,639,621.

21




 

HRPT Properties Trust

Supplemental Operating and Financial Data

September 30, 2006

 

LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS

 

 

As of and For the Three Months Ended

 

 

 

9/30/2006

 

6/30/2006

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

Leverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt / total assets

 

48.4

%

48.0

%

46.9

%

47.3

%

45.3

%

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

 

45.7

%

45.4

%

44.8

%

46.7

%

44.8

%

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

 

45.7

%

45.4

%

44.8

%

45.1

%

43.1

%

Total debt / total market capitalization

 

47.0

%

47.5

%

46.2

%

48.4

%

42.7

%

Total debt / total book capitalization

 

50.0

%

49.5

%

48.4

%

48.8

%

46.8

%

Secured debt / total assets

 

7.1

%

7.2

%

7.1

%

7.0

%

6.7

%

Variable rate debt / total debt

 

26.9

%

26.0

%

23.6

%

24.0

%

29.8

%

Variable rate debt / total assets

 

13.0

%

12.5

%

11.1

%

11.4

%

13.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA / interest expense

 

2.7

x

2.7

x

2.9

x

3.0

x

3.3

x

EBITDA / interest expense + preferred distributions

 

2.2

x

2.2

x

2.3

x

2.3

x

2.5

x

 

 

 

 

 

 

 

 

 

 

 

 

Public Debt Covenants (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt / adjusted total assets (maximum 60%)

 

44.5

%

44.4

%

43.6

%

44.1

%

42.2

%

Secured debt / adjusted total assets (maximum 40%)

 

6.6

%

6.6

%

6.6

%

6.6

%

6.3

%

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

 

2.8

x

2.9

x

3.0

x

3.0

x

3.2

x

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

 

223.6

%

224.8

%

229.6

%

226.5

%

239.0

%

 


(1)

 

Gross book value of real estate assets is real estate properties, at cost, including purchase price allocations less impairment writedowns, 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.

 

22




 

HRPT Properties Trust

Supplemental Operating and Financial Data

September 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

 

 

 

9/30/2006

 

6/30/2006

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

Tenant improvements (TI)

 

$

13,032

 

$

14,641

 

$

15,168

 

$

23,436

 

$

27,829

 

Leasing costs (LC)

 

5,339

 

9,692

 

5,050

 

7,124

 

4,617

 

Total TI and LC

 

18,371

 

24,333

 

20,218

 

30,560

 

32,446

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring building improvements (1)

 

5,615

 

6,254

 

5,615

 

8,986

 

7,044

 

Development, redevelopment and other activities (2)

 

8,114

 

4,820

 

2,687

 

3,458

 

4,674

 

Total capital improvements, including TI and LC

 

$

32,100

 

$

35,407

 

$

28,520

 

$

43,004

 

$

44,164

 

 

 

 

 

 

 

 

 

 

 

 

 

Sq. ft. beginning of period

 

58,029

 

56,835

 

55,035

 

54,132

 

52,792

 

Sq. ft. end of period

 

58,070

 

58,029

 

56,835

 

55,035

 

54,132

 

Average sq. ft. during period

 

58,050

 

57,432

 

55,935

 

54,584

 

53,462

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring building improvements per average sq. ft. during period

 

$

0.10

 

$

0.11

 

$

0.10

 

$

0.16

 

$

0.13

 

 


(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.

23




 

HRPT Properties Trust

Supplemental Operating and Financial Data

September 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

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There were no acquisitions during the three months ended September 30, 2006.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jul-06

 

Atlanta, GA

 

Office

 

4

 

68

 

$

9,200

 

$

8,090

 

$

135.29

 

$

118.97

 

1.1

x

$

1,172

 

 

 

Total

 

 

 

4

 

68

 

$

9,200

 

$

8,090

 

$

135.29

 

$

118.97

 

1.1

x

$

1,172

 

 


(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.

 

24




 

HRPT Properties Trust

Supplemental Operating and Financial Data

September 30, 2006

 

2006 FINANCING ACTIVITIES

(amounts in thousands)

 

 

For the Three Months Ended

 

 

 

9/30/2006

 

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.

25




PORTFOLIO AND LEASING INFORMATION

 




HRPT Properties Trust

Supplemental Operating and Financial Data

September 30, 2006

 

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

(sq. ft. in thousands)

 

 

Metro

 

 

 

Metro

 

Metro

 

Southern

 

Metro

 

Other

 

 

 

 

 

Philadelphia, PA

 

Oahu, HI

 

Washington, DC

 

Boston, MA

 

California

 

Austin, TX

 

Markets

 

Total

 

Square Feet (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

5,453

 

 

2,645

 

2,740

 

1,444

 

1,492

 

20,170

 

33,944

 

Industrial

 

 

17,929

 

 

 

 

1,316

 

4,881

 

24,126

 

Total

 

5,453

 

17,929

 

2,645

 

2,740

 

1,444

 

2,808

 

25,051

 

58,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

4,602

 

158

 

892

 

523

 

331

 

186

 

4,801

 

11,493

 

Suburban

 

851

 

17,771

 

1,753

 

2,217

 

1,113

 

2,622

 

20,250

 

46,577

 

Total

 

5,453

 

17,929

 

2,645

 

2,740

 

1,444

 

2,808

 

25,051

 

58,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

11

 

 

1,373

 

211

 

509

 

15

 

3,452

 

5,571

 

Medical related tenants (2)

 

993

 

 

356

 

1,042

 

630

 

389

 

2,931

 

6,341

 

Land leases (2)

 

 

17,440

 

 

 

 

 

 

17,440

 

Other investment grade
tenants (2)(3)

 

1,885

 

 

98

 

870

 

36

 

396

 

6,249

 

9,534

 

Other tenants (2)

 

2,052

 

7

 

728

 

582

 

236

 

1,837

 

9,924

 

15,366

 

Vacant

 

512

 

482

 

90

 

35

 

33

 

171

 

2,495

 

3,818

 

Total

 

5,453

 

17,929

 

2,645

 

2,740

 

1,444

 

2,808

 

25,051

 

58,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Major Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

16

%

0

%

8

%

8

%

4

%

4

%

60

%

100

%

Industrial

 

0

%

74

%

0

%

0

%

0

%

6

%

20

%

100

%

Total

 

9

%

31

%

4

%

5

%

3

%

5

%

43

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

40

%

1

%

8

%

4

%

3

%

2

%

42

%

100

%

Suburban

 

2

%

38

%

4

%

5

%

2

%

6

%

43

%

100

%

Total

 

9

%

31

%

4

%

5

%

3

%

5

%

43

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

0

%

0

%

25

%

4

%

9

%

0

%

62

%

100

%

Medical related tenants

 

16

%

0

%

6

%

16

%

10

%

6

%

46

%

100

%

Land leases

 

0

%

100

%

0

%

0

%

0

%

0

%

0

%

100

%

Other investment grade
tenants (3)

 

20

%

0

%

1

%

9

%

0

%

4

%

66

%

100

%

Other tenants

 

13

%

0

%

5

%

4

%

1

%

12

%

65

%

100

%

Vacant

 

13

%

13

%

2

%

1

%

1

%

5

%

65

%

100

%

Total

 

9

%

31

%

4

%

5

%

3

%

5

%

43

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Property Type and Tenant:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

100

%

0

%

100

%

100

%

100

%

53

%

80

%

58

%

Industrial

 

0

%

100

%

0

%

0

%

0

%

47

%

20

%

42

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

84

%

1

%

34

%

19

%

23

%

7

%

19

%

20

%

Suburban

 

16

%

99

%

66

%

81

%

77

%

93

%

81

%

80

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

0

%

0

%

52

%

8

%

35

%

1

%

14

%

9

%

Medical related tenants

 

18

%

0

%

13

%

38

%

44

%

14

%

11

%

11

%

Land leases

 

0

%

97

%

0

%

0

%

0

%

0

%

0

%

30

%

Other investment grade
tenants (3)

 

35

%

0

%

4

%

32

%

3

%

14

%

25

%

16

%

Other tenants

 

38

%

0

%

28

%

21

%

16

%

65

%

40

%

27

%

Vacant

 

9

%

3

%

3

%

1

%

2

%

6

%

10

%

7

%

Total

 

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 9/30/2006, 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.

27




HRPT Properties Trust

Supplemental Operating and Financial Data

September 30, 2006

 

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

(dollars in thousands)

 

 

Metro

Philadelphia, PA

 

Oahu,

HI

 

Metro

Washington, DC

 

Metro

Boston, MA

 

Southern

California

 

Metro

Austin, TX

 

Other

Markets

 

Total

 

Annualized Rental Income (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

$

125,646

 

 

$

79,382

 

$

63,677

 

$

49,789

 

$

28,859

 

$

347,238

 

$

694,591

 

Industrial

 

 

60,714

 

 

 

 

15,090

 

41,021

 

116,825

 

Total

 

$

125,646

 

$

60,714

 

$

79,382

 

$

63,677

 

$

49,789

 

$

43,949

 

$

388,259

 

$

811,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

$

113,623

 

$

1,165

 

$

35,712

 

$

21,123

 

$

21,352

 

$

4,950

 

$

87,627

 

$

285,552

 

Suburban

 

12,023

 

59,549

 

43,670

 

42,554

 

28,437

 

38,999

 

300,632

 

525,864

 

Total

 

$

125,646

 

$

60,714

 

$

79,382

 

$

63,677

 

$

49,789

 

$

43,949

 

$

388,259

 

$

811,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

$

246

 

 

$

40,881

 

$

5,219

 

$

10,412

 

$

227

 

$

63,040

 

$

120,025

 

Medical related tenants

 

20,926

 

 

13,093

 

23,364

 

33,004

 

9,910

 

55,303

 

155,600

 

Land leases

 

 

60,563

 

 

 

 

 

 

60,563

 

Other investment grade tenants (2)

 

49,674

 

 

3,577

 

16,765

 

1,028

 

4,964

 

112,708

 

188,716

 

Other tenants

 

54,800

 

151

 

21,831

 

18,329

 

5,345

 

28,848

 

157,208

 

286,512

 

Total

 

$

125,646

 

$

60,714

 

$

79,382

 

$

63,677

 

$

49,789

 

$

43,949

 

$

388,259

 

$

811,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Major Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

18

%

0

%

11

%

9

%

7

%

4

%

51

%

100

%

Industrial

 

0

%

52

%

0

%

0

%

0

%

13

%

35

%

100

%

Total

 

16

%

7

%

10

%

8

%

6

%

5

%

48

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

40

%

0

%

13

%

7

%

7

%

2

%

31

%

100

%

Suburban

 

2

%

11

%

8

%

8

%

6

%

8

%

57

%

100

%

Total

 

16

%

7

%

10

%

8

%

6

%

5

%

48

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

0

%

0

%

34

%

4

%

9

%

0

%

53

%

100

%

Medical related tenants

 

13

%

0

%

8

%

15

%

21

%

6

%

37

%

100

%

Land leases

 

0

%

100

%

0

%

0

%

0

%

0

%

0

%

100

%

Other investment grade tenants (2)

 

26

%

0

%

2

%

9

%

0

%

3

%

60

%

100

%

Other tenants

 

19

%

0

%

8

%

6

%

2

%

10

%

55

%

100

%

Total

 

16

%

7

%

10

%

8

%

6

%

5

%

48

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Property Type and Tenant:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

100

%

0

%

100

%

100

%

100

%

66

%

89

%

86

%

Industrial

 

0

%

100

%

0

%

0

%

0

%

34

%

11

%

14

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

90

%

2

%

45

%

33

%

43

%

11

%

23

%

35

%

Suburban

 

10

%

98

%

55

%

67

%

57

%

89

%

77

%

65

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

0

%

0

%

51

%

8

%

21

%

1

%

16

%

15

%

Medical related tenants

 

17

%

0

%

16

%

37

%

66

%

23

%

14

%

19

%

Land leases

 

0

%

100

%

0

%

0

%

0

%

0

%

0

%

7

%

Other investment grade tenants (2)

 

40

%

0

%

5

%

26

%

2

%

11

%

29

%

23

%

Other tenants

 

43

%

0

%

28

%

29

%

11

%

65

%

41

%

36

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 


(1)

 

Annualized rental income is rents pursuant to signed leases as of 9/30/2006, 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.

28




HRPT Properties Trust

Supplemental Operating and Financial Data

September 30, 2006

 

SUMMARY OF PROPERTIES BY MAJOR MARKET

(amounts in thousands)

 

 

As of 9/30/2006

 

Annualized

 

% of Annualized

 

Market

 

Properties

 

Sq. Ft.

 

% Sq. Ft.

 

Rental Income (1)

 

Rental Income (1)

 

Metro Philadelphia, PA

 

21

 

5,453

 

9.4

%

$

125,646

 

15.5

%

Oahu, HI

 

56

 

17,929

 

30.9

%

60,714

 

7.5

%

Metro Washington, DC

 

20

 

2,645

 

4.6

%

79,382

 

9.8

%

Metro Boston, MA

 

36

 

2,740

 

4.7

%

63,677

 

7.8

%

Southern California

 

24

 

1,444

 

2.5

%

49,789

 

6.1

%

Metro Austin, TX

 

26

 

2,808

 

4.8

%

43,949

 

5.4

%

Other markets

 

304

 

25,051

 

43.1

%

388,259

 

47.9

%

Total

 

487

 

58,070

 

100.0

%

$

811,416

 

100.0

%

 

 

Percent NOI For the Three Months Ended (2)

 

 

 

9/30/2006

 

6/30/2006

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

Metro Philadelphia, PA

 

13.9

%

14.1

%

14.3

%

15.5

%

16.4

%

Oahu, HI

 

10.9

%

10.2

%

9.7

%

10.8

%

10.1

%

Metro Washington, DC

 

10.1

%

10.1

%

10.6

%

11.6

%

11.1

%

Metro Boston, MA

 

8.1

%

8.2

%

8.5

%

8.6

%

8.8

%

Southern California

 

7.0

%

6.7

%

7.1

%

7.4

%

7.6

%

Metro Austin, TX

 

4.2

%

4.5

%

4.4

%

4.0

%

3.8

%

Other markets

 

45.8

%

46.2

%

45.4

%

42.1

%

42.2

%

Total

 

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

 


(1)          Annualized rental income is rents pursuant to signed leases as of 9/30/2006, 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 9/30/2006, 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.

29




HRPT Properties Trust

Supplemental Operating and Financial Data

September 30, 2006

 

LEASING SUMMARY

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

 

 

As of and For the Three Months Ended (1)

 

 

 

9/30/2006

 

6/30/2006

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

Properties

 

487

 

487

 

474

 

442

 

434

 

Total sq. ft. (2)

 

58,070

 

58,029

 

56,835

 

55,035

 

54,132

 

Percentage leased

 

93.4

%

93.6

%

93.4

%

94.3

%

93.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Leasing Activity (sq. ft.):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

642

 

629

 

606

 

538

 

512

 

Renewals

 

766

 

1,343

 

1,160

 

774

 

404

 

Total

 

1,408

 

1,972

 

1,766

 

1,312

 

916

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change in GAAP Rent (3):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

19

%

8

%

-4

%

-2

%

-6

%

Renewals

 

1

%

3

%

4

%

13

%

-4

%

Weighted average by sq. ft.

 

9

%

5

%

2

%

5

%

-5

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments (4):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

20,473

 

$

10,975

 

$

8,966

 

$

9,681

 

$

10,384

 

Renewals

 

5,205

 

15,116

 

9,944

 

3,738

 

2,834

 

Total

 

$

25,678

 

$

26,091

 

$

18,910

 

$

13,419

 

$

13,218

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments per Sq. Ft. (4):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

31.89

 

$

17.45

 

$

14.80

 

$

17.99

 

$

20.28

 

Renewals

 

$

6.80

 

$

11.26

 

$

8.57

 

$

4.83

 

$

7.01

 

Total

 

$

18.24

 

$

13.23

 

$

10.71

 

$

10.23

 

$

14.43

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

New leases

 

7.6

 

6.2

 

6.9

 

7.3

 

6.3

 

Renewals

 

5.0

 

8.9

 

11.7

 

11.4

 

5.5

 

Total

 

6.3

 

8.0

 

10.3

 

9.4

 

5.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments per Sq. Ft. per Year:

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

4.20

 

$

2.81

 

$

2.14

 

$

2.46

 

$

3.22

 

Renewals

 

$

1.36

 

$

1.26

 

$

0.73

 

$

0.42

 

$

1.28

 

Total

 

$

2.89

 

$

1.65

 

$

1.04

 

$

1.09

 

$

2.45

 

 


(1)          Results as of and for the three months ended 9/30/2006, 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.

30




HRPT Properties Trust

Supplemental Operating and Financial Data

September 30, 2006

 

OCCUPANCY AND LEASING ANALYSIS BY PROPERTY TYPE AND MAJOR MARKET (3 MONTHS ENDED 9/30/2006)

(dollars and sq. ft. in thousands)

 

Total Sq. Ft.

 

Sq. Ft. Leases Executed During

 

 

 

As of

 

Three Months Ended 9/30/2006 (1)

 

Property Type/Market

 

9/30/2006 (1)

 

New

 

Renewals

 

Total

 

Office

 

33,944

 

486

 

527

 

1,013

 

Industrial

 

24,126

 

156

 

239

 

395

 

Total

 

58,070

 

642

 

766

 

1,408

 

 

 

 

 

 

 

 

 

 

 

CBD

 

11,493

 

75

 

98

 

173

 

Suburban

 

46,577

 

567

 

668

 

1,235

 

Total

 

58,070

 

642

 

766

 

1,408

 

 

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

5,453

 

58

 

59

 

117

 

Oahu, HI

 

17,929

 

 

 

 

Metro Washington, DC

 

2,645

 

5

 

13

 

18

 

Metro Boston, MA

 

2,740

 

64

 

134

 

198

 

Southern California

 

1,444

 

4

 

13

 

17

 

Metro Austin, TX

 

2,808

 

61

 

35

 

96

 

Other markets

 

25,051

 

450

 

512

 

962

 

Total

 

58,070

 

642

 

766

 

1,408

 

 

 

 

Sq. Ft. Leased

 

 

 

As of

 

6/30/06

 

 

 

New and

 

Acquisitions /

 

As of

 

9/30/2006

 

 

 

6/30/2006

 

% Leased (2)

 

Expired

 

Renewals

 

(Sales)

 

9/30/2006 (1)

 

% Leased

 

Office

 

31,033

 

91.5

%

(1,124

)

1,013

 

 

30,922

 

91.1

%

Industrial

 

23,272

 

96.5

%

(337

)

395

 

 

23,330

 

96.7

%

Total

 

54,305

 

93.6

%

(1,461

)

1,408

 

 

54,252

 

93.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

10,612

 

92.4

%

(236

)

173

 

 

10,549

 

91.8

%

Suburban

 

43,693

 

93.9

%

(1,225

)

1,235

 

 

43,703

 

93.8

%

Total

 

54,305

 

93.6

%

(1,461

)

1,408

 

 

54,252

 

93.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

4,948

 

90.8

%

(124

)

117

 

 

4,941

 

90.6

%

Oahu, HI

 

17,447

 

97.3

%

 

 

 

17,447

 

97.3

%

Metro Washington, DC

 

2,555

 

96.6

%

(18

)

18

 

 

2,555

 

96.6

%

Metro Boston, MA

 

2,650

 

96.8

%

(143

)

198

 

 

2,705

 

98.7

%

Southern California

 

1,414

 

97.9

%

(19

)

17

 

 

1,412

 

97.8

%

Metro Austin, TX

 

2,593

 

92.4

%

(53

)

96

 

 

2,636

 

93.9

%

Other markets

 

22,698

 

90.7

%

(1,104

)

962

 

 

22,556

 

90.0

%

Total

 

54,305

 

93.6

%

(1,461

)

1,408

 

 

54,252

 

93.4

%

 


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

(2)          Based on total sq. ft. as of June 30, 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.

31




HRPT Properties Trust

Supplemental Operating and Financial Data

September 30, 2006

 

OCCUPANCY AND LEASING ANALYSIS BY PROPERTY TYPE AND MAJOR MARKET (9 MONTHS ENDED 9/30/2006)

(dollars and sq. ft. in thousands)

 

Total Sq. Ft.

 

Sq. Ft. Leases Executed During

 

 

 

As of

 

Nine Months Ended 9/30/2006 (1)

 

Property Type/Market

 

9/30/2006 (1)

 

New

 

Renewals

 

Total

 

Office

 

33,944

 

1,302

 

2,199

 

3,501

 

Industrial

 

24,126

 

575

 

1,070

 

1,645

 

Total

 

58,070

 

1,877

 

3,269

 

5,146

 

 

 

 

 

 

 

 

 

 

 

CBD

 

11,493

 

389

 

806

 

1,195

 

Suburban

 

46,577

 

1,488

 

2,463

 

3,951

 

Total

 

58,070

 

1,877

 

3,269

 

5,146

 

 

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

5,453

 

236

 

499

 

735

 

Oahu, HI

 

17,929

 

286

 

401

 

687

 

Metro Washington, DC

 

2,645

 

61

 

180

 

241

 

Metro Boston, MA

 

2,740

 

144

 

478

 

622

 

Southern California

 

1,444

 

15

 

46

 

61

 

Metro Austin, TX

 

2,808

 

143

 

58

 

201

 

Other markets

 

25,051

 

992

 

1,607

 

2,599

 

Total

 

58,070

 

1,877

 

3,269

 

5,146

 

 

 

 

Sq. Ft. Leased

 

 

 

As of

 

12/31/2005

 

 

 

New and

 

Acquisitions /

 

As of

 

9/30/06

 

 

 

12/31/2005

 

% Leased (2)

 

Expired

 

Renewals

 

(Sales) (3)

 

9/30/2006 (1)

 

% Leased

 

Office

 

28,931

 

92.5

%

(3,901

)

3,501

 

2,391

 

30,922

 

91.1

%

Industrial

 

22,952

 

96.6

%

(1,575

)

1,645

 

308

 

23,330

 

96.7

%

Total

 

51,883

 

94.3

%

(5,476

)

5,146

 

2,699

 

54,252

 

93.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

10,698

 

92.9

%

(1,344

)

1,195

 

 

10,549

 

91.8

%

Suburban

 

41,185

 

94.6

%

(4,132

)

3,951

 

2,699

 

43,703

 

93.8

%

Total

 

51,883

 

94.3

%

(5,476

)

5,146

 

2,699

 

54,252

 

93.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

5,064

 

93.0

%

(858

)

735

 

 

4,941

 

90.6

%

Oahu, HI

 

17,481

 

97.8

%

(721

)

687

 

 

17,447

 

97.3

%

Metro Washington, DC

 

2,538

 

95.9

%

(224

)

241

 

 

2,555

 

96.6

%

Metro Boston, MA

 

2,654

 

97.0

%

(571

)

622

 

 

2,705

 

98.7

%

Southern California

 

1,414

 

97.9

%

(63

)

61

 

 

1,412

 

97.8

%

Metro Austin, TX

 

2,542

 

90.6

%

(107

)

201

 

 

2,636

 

93.9

%

Other markets

 

20,190

 

91.4

%

(2,932

)

2,599

 

2,699

 

22,556

 

90.0

%

Total

 

51,883

 

94.3

%

(5,476

)

5,146

 

2,699

 

54,252

 

93.4

%

 


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

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

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

We define our major markets as markets which 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

September 30, 2006

 

TENANTS REPRESENTING 1% OR MORE OF TOTAL RENT

(sq. ft. in thousands)

 

 

 

% of Total

 

% of Rental

 

 

 

Tenant

 

Sq. Ft. (1)

 

Sq. Ft. (1)

 

Income (2)

 

Expiration

 

1

 

U.S. Government

 

4,943

 

9.1

%

13.4

%

2006 to 2020

 

2

 

GlaxoSmithKline plc

 

608

 

1.1

%

1.8

%

2013

 

3

 

PNC Financial Services Group

 

460

 

0.8

%

1.4

%

2011, 2021

 

4

 

Comcast Corporation

 

400

 

0.7

%

1.2

%

2006, 2008

 

5

 

Solectron Corporation

 

765

 

1.4

%

1.1

%

2014

 

6

 

Motorola, Inc.

 

766

 

1.4

%

1.1

%

2006, 2008, 2010

 

7

 

JDA Software Group, Inc.

 

283

 

0.5

%

1.1

%

2012

 

8

 

The Scripps Research Institute

 

164

 

0.3

%

1.1

%

2019

 

9

 

Tyco International Ltd.

 

660

 

1.2

%

1.1

%

2007, 2017

 

10

 

Ballard Spahr Andrews & Ingersoll, LLP

 

231

 

0.4

%

1.0

%

2008, 2015

 

11

 

Westinghouse Electric Corporation

 

534

 

1.0

%

1.0

%

2010, 2011

 

 

 

Total

 

9,814

 

17.9

%

25.3

%

 

 

 


(1)

 

Sq. ft. is pursuant to signed leases as of 9/30/2006, 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 9/30/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization and rents from properties classified in discontinued operations.

 

33




HRPT Properties Trust

Supplemental Operating and Financial Data

September 30, 2006

 

THREE YEAR LEASE EXPIRATION SCHEDULE BY PROPERTY TYPE

(dollars and sq. ft. in thousands)

 

 

Total as of
9/30/2006 (1)

 

2006

 

2007

 

2008

 

2009 and
Thereafter

 

 

 

 

 

 

 

 

 

 

 

 

 

Office:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

33,944

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

30,922

 

1,295

 

2,786

 

3,172

 

23,669

 

Percent

 

100.0

%

4.2

%

9.0

%

10.3

%

76.5

%

Annualized rental income (3)

 

$

694,591

 

$

29,397

 

$

61,977

 

$

70,218

 

$

532,999

 

Percent

 

100.0

%

4.2

%

8.9

%

10.1

%

76.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Industrial:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

24,126

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

23,330

 

181

 

1,104

 

1,430

 

20,615

 

Percent

 

100.0

%

0.8

%

4.7

%

6.1

%

88.4

%

Annualized rental income (3)

 

$

116,825

 

$

1,192

 

$

7,268

 

$

10,029

 

$

98,336

 

Percent

 

100.0

%

1.0

%

6.2

%

8.6

%

84.2

%

 

 

 

 

 

 

 

 

 

 

 

 

CBD:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

11,493

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

10,549

 

360

 

797

 

1,235

 

8,157

 

Percent

 

100.0

%

3.4

%

7.6

%

11.7

%

77.3

%

Annualized rental income (3)

 

$

285,552

 

$

10,926

 

$

20,653

 

$

30,399

 

$

223,574

 

Percent

 

100.0

%

3.8

%

7.2

%

10.6

%

78.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Suburban:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

46,577

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

43,703

 

1,116

 

3,093

 

3,367

 

36,127

 

Percent

 

100.0

%

2.6

%

7.1

%

7.7

%

82.6

%

Annualized rental income (3)

 

$

525,864

 

$

19,663

 

$

48,592

 

$

49,848

 

$

407,761

 

Percent

 

100.0

%

3.7

%

9.2

%

9.5

%

77.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

58,070

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

54,252

 

1,476

 

3,890

 

4,602

 

44,284

 

Percent

 

100.0

%

2.7

%

7.2

%

8.5

%

81.6

%

Annualized rental income (3)

 

$

811,416

 

$

30,589

 

$

69,245

 

$

80,247

 

$

631,335

 

Percent

 

100.0

%

3.8

%

8.5

%

9.9

%

77.8

%

 


(1)

 

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

(2)

 

Sq. ft. is pursuant to signed leases as of 9/30/2006, 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 9/30/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

 

34




HRPT Properties Trust

Supplemental Operating and Financial Data

September 30, 2006

 

THREE YEAR LEASE EXPIRATION SCHEDULE BY MAJOR MARKET

(dollars and sq. ft. in thousands)

 

 

Total as of
9/30/2006 (1)

 

2006

 

2007

 

2008

 

2009 and
Thereafter

 

Metro Philadelphia, PA:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

5,453

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

4,941

 

75

 

142

 

682

 

4,042

 

Percent

 

100.0

%

1.5

%

2.9

%

13.8

%

81.8

%

Annualized rental income (3)

 

$

125,646

 

$

3,101

 

$

3,088

 

$

16,169

 

$

103,288

 

Percent

 

100.0

%

2.5

%

2.5

%

12.9

%

82.1

%

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)

 

$

60,714

 

$

449

 

$

961

 

$

2,423

 

$

56,881

 

Percent

 

100.0

%

0.7

%

1.6

%

4.0

%

93.7

%

Metro Washington, DC:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,645

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

2,555

 

171

 

223

 

124

 

2,037

 

Percent

 

100.0

%

6.7

%

8.7

%

4.9

%

79.7

%

Annualized rental income (3)

 

$

79,382

 

$

4,338

 

$

6,603

 

$

3,781

 

$

64,660

 

Percent

 

100.0

%

5.5

%

8.3

%

4.8

%

81.4

%

Metro Boston, MA

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,740

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

2,705

 

113

 

351

 

150

 

2,091

 

Percent

 

100.0

%

4.2

%

13.0

%

5.5

%

77.3

%

Annualized rental income (3)

 

$

63,677

 

$

3,380

 

$

7,630

 

$

4,176

 

$

48,491

 

Percent

 

100.0

%

5.3

%

12.0

%

6.6

%

76.1

%

Southern California:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

1,444

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

1,412

 

84

 

280

 

113

 

935

 

Percent

 

100.0

%

5.9

%

19.8

%

8.0

%

66.3

%

Annualized rental income (3)

 

$

49,789

 

$

2,283

 

$

8,849

 

$

4,910

 

$

33,747

 

Percent

 

100.0

%

4.6

%

17.8

%

9.9

%

67.7

%

Metro Austin, TX:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,808

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

2,636

 

33

 

530

 

173

 

1,900

 

Percent

 

100.0

%

1.3

%

20.1

%

6.6

%

72.0

%

Annualized rental income (3)

 

$

43,949

 

$

715

 

$

7,481

 

$

3,512

 

$

32,241

 

Percent

 

100.0

%

1.6

%

17.0

%

8.0

%

73.4

%

Other markets:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

25,051

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

22,556

 

894

 

1,917

 

2,865

 

16,880

 

Percent

 

100.0

%

4.0

%

8.5

%

12.7

%

74.8

%

Annualized rental income (3)

 

$

388,259

 

$

16,323

 

$

34,633

 

$

45,276

 

$

292,027

 

Percent

 

100.0

%

4.2

%

8.9

%

11.7

%

75.2

%

Total:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

58,070

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

54,252

 

1,476

 

3,890

 

4,602

 

44,284

 

Percent

 

100.0

%

2.7

%

7.2

%

8.5

%

81.6

%

Annualized rental income (3)

 

$

811,416

 

$

30,589

 

$

69,245

 

$

80,247

 

$

631,335

 

Percent

 

100.0

%

3.8

%

8.5

%

9.9

%

77.8

%

 


(1)

 

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

(2)

 

Sq. ft. is pursuant to signed leases as of 9/30/2006, 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 9/30/2006, 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.

35




HRPT Properties Trust

Supplemental Operating and Financial Data

September 30, 2006

 

PORTFOLIO LEASE EXPIRATION SCHEDULE

(dollars and sq. ft. in thousands)

 

 

 

 

 

 

 

 

 

 

Cumulative %

 

 

 

Sq. Ft.
Expiring (1)

 

% of Sq. Ft.
Expiring

 

Annualized
Rental Income
Expiring (2)

 

% of Annualized
Rental Income
Expiring

 

of Annualized
Rental Income
Expiring

 

2006

 

1,476

 

2.7

%

$

30,589

 

3.8

%

3.8

%

2007

 

3,890

 

7.2

%

69,245

 

8.5

%

12.3

%

2008

 

4,602

 

8.5

%

80,247

 

9.9

%

22.2

%

2009

 

3,658

 

6.7

%

65,468

 

8.1

%

30.3

%

2010

 

5,166

 

9.5

%

91,899

 

11.3

%

41.6

%

2011

 

4,957

 

9.1

%

87,948

 

10.8

%

52.4

%

2012

 

3,748

 

6.9

%

74,273

 

9.2

%

61.6

%

2013

 

2,210

 

4.1

%

41,673

 

5.1

%

66.7

%

2014

 

2,440

 

4.5

%

43,222

 

5.3

%

72.0

%

2015

 

2,405

 

4.4

%

52,087

 

6.4

%

78.4

%

2016 and thereafter

 

19,700

 

36.4

%

174,765

 

21.6

%

100.0

%

Total

 

54,252

 

100.0

%

$

811,416

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average remaining lease term (in years)

 

9.5

 

 

 

6.5

 

 

 

 

 

 


(1)

 

Sq. ft. is pursuant to signed leases as of 9/30/2006, 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 9/30/2006, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization and rents from properties classified in discontinued operations.

 

36