-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LM1S2TX7wxHjFwdh6g8nOrQOMDBbE+401dR3HLTo+SJ8cffgWfNd+sSMOybC9DAf 9+hcrwcZNPlgVN+wCuOKpg== 0001104659-09-030269.txt : 20090507 0001104659-09-030269.hdr.sgml : 20090507 20090507101836 ACCESSION NUMBER: 0001104659-09-030269 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20090507 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090507 DATE AS OF CHANGE: 20090507 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HRPT PROPERTIES TRUST CENTRAL INDEX KEY: 0000803649 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 046558834 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09317 FILM NUMBER: 09803912 BUSINESS ADDRESS: STREET 1: 400 CENTRE ST CITY: NEWTON STATE: MA ZIP: 02458 BUSINESS PHONE: 6177968350 MAIL ADDRESS: STREET 1: 400 CENTRE STREET CITY: NEWTON STATE: MA ZIP: 02458 FORMER COMPANY: FORMER CONFORMED NAME: HEALTH & RETIREMENT PROPERTIES TRUST DATE OF NAME CHANGE: 19940811 FORMER COMPANY: FORMER CONFORMED NAME: HEALTH & REHABILITATION PROPERTIES TRUST DATE OF NAME CHANGE: 19920703 8-K 1 a09-12731_18k.htm 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): May 7, 2009 (May 7, 2009)

 

HRPT PROPERTIES TRUST

(Exact Name of Registrant as Specified in Its Charter)

 

Maryland

(State or Other Jurisdiction of Incorporation)

 

1-9317

 

04-6558834

(Commission File Number)

 

(IRS Employer Identification No.)

 

400 Centre Street, Newton, Massachusetts  02458

(Address of Principal Executive Offices)  (Zip Code)

 

617-332-3990

(Registrant’s Telephone Number, Including Area Code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o                                    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o                                    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o                                    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o                                    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


 

Item 2.02.  Results of Operations and Financial Condition.

 

On May 7, 2009, HRPT Properties Trust, or the Company, issued a press release setting forth the Company’s results of operations and financial condition for the quarter ended March 31, 2009, and also provided certain supplemental operating and financial data for the quarter ended March 31, 2009.  Copies of the Company’s press release and supplemental operating and financial data are furnished as Exhibits 99.1 and 99.2 hereto, respectively.

 

Item 9.01.  Financial Statements and Exhibits.

 

(d)          Exhibits

 

The Company hereby furnishes the following exhibits:

 

99.1         Press release dated May 7, 2009

99.2         First Quarter 2009 Supplemental Operating and Financial Data

 

2


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

HRPT PROPERTIES TRUST

 

 

 

 

 

 

 

By:

/s/ John C. Popeo

 

Name:

John C. Popeo

 

Title:

Treasurer and Chief Financial Officer

 

 

 

Dated:  May 7, 2009

 

 

 

3

 EX-99.1 2 a09-12731_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

 

 

400 Centre Street, Newton, MA 02458-2076

 

 

 

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

 

 FOR IMMEDIATE RELEASE

 

 

Contacts:

 

Timothy A. Bonang, Director of Investor Relations, or

 

Katherine L. Johnston, Manager of Investor Relations

 

(617) 796-8222

 

www.hrpreit.com

 

HRPT Properties Trust Announces Results for the Period

Ended March 31, 2009

 

 

Newton, MA (May 7, 2009): HRPT Properties Trust (NYSE: HRP) today announced financial results for the quarter ended March 31, 2009.

 

Results for the quarter ended March 31, 2009:

 

Net income available for common shareholders was $30.4 million for the quarter ended March 31, 2009, compared to $14.7 million for the same quarter last year.  Net income available for common shareholders per share, basic and diluted, (EPS) for the quarters ended March 31, 2009 and 2008, was $0.13 and $0.07, respectively.  Net income for the quarter ended March 31, 2009, includes an $8.7 million, or $0.04 per share, gain on sale of property, and a $7.5 million, or $0.03 per share, gain on early extinguishment of debt.

 

Funds from operations (FFO) available for common shareholders for the quarter ended March 31, 2009, was $62.8 million, or $0.28 per share basic, and $0.27 per share diluted, compared to FFO available for common shareholders for the quarter ended March 31, 2008, of $63.1 million, or $0.28 per share basic, and $0.27 per share diluted.

 

The weighted average number of basic and diluted common shares outstanding totaled 225,619,502 and 254,812,160, respectively, for the quarter ended March 31, 2009, and 225,444,497 and 254,637,155, respectively, for the quarter ended March 31, 2008.

 

Occupancy and Leasing Results (excluding properties classified in discontinued operations):

 

As of March 31, 2009, 89.5% of HRP’s total square feet was leased, compared to 90.4% as of December 31, 2008 and 91.4% as of March 31, 2008.

 

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

 


 

HRP signed new leases for 190,000 square feet and lease renewals for 755,000 square feet during the quarter ended March 31, 2009, for weighted average rental rates that were 6% above prior rents for the same space.  Average lease terms for leases signed during the first quarter of 2009 were 5.0 years.  Commitments for tenant improvement and leasing commission (TI/LC) costs for leases signed during the quarter ended March 31, 2009, totaled $7.12 per square foot on a weighted average basis.

 

Investing and Financing Activities:

 

During the first quarter of 2009, HRP acquired four office properties with 392,000 square feet of space for $57.5 million, excluding closing costs, and sold one property with 50,000 square feet of space for $19.3 million, excluding closing costs.

 

During the three month period ended March 31, 2009, HRP repurchased 4,050,000 of its common shares at an average price of $3.57/share.  Because of changing market conditions, HRP has not purchased any additional common shares since March 31, 2009.  During the three months ended March 31, 2009, HRP also purchased $31.8 million face amount of its publicly issued debt securities and realized a gain on early extinguishment of debt of approximately $7.5 million, net of unamortized issuance costs.  Since March 31, 2009, HRP has purchased additional debt securities with a face amount of $67.7 million, which resulted in a gain on early extinguishment of debt of approximately $11.5 million, net of unamortized issuance costs and discounts, that will be reported in the second quarter of 2009.

 

Conference Call:

 

On Thursday, May 7, 2009, at 1:00 p.m. Eastern Time, Adam Portnoy, Managing Trustee, and John Popeo, Chief Financial Officer, will host a conference call to discuss the first quarter 2009 results.

 

The conference call telephone number is (800) 239-9838.  Participants calling from outside the United States and Canada should dial (913) 312-1265.  No pass code is necessary to access either call.  Participants should dial in about 15 minutes prior to the scheduled start of the call.  A replay of the conference call will be available through 4:00 p.m. Eastern Time on Thursday, May 14, 2009.  To hear the replay, dial (719) 457-0820.  The replay pass code is 1897104.

 

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

 

Supplemental Data:

 

A copy of HRP’s First Quarter 2009 Supplemental Operating and Financial Data is available for download at HRP’s web site, www.hrpreit.com.

 

2


 

HRPT Properties Trust is a real estate investment trust, or REIT, which primarily owns office buildings located throughout the United States.  As of March 31, 2009, HRP owned 541 operating properties with 67.3 million square feet, including approximately 17 million square feet of leased industrial and commercial lands in Oahu, Hawaii.  HRP is headquartered in Newton, Massachusetts.

 

Please see the pages attached hereto for a more detailed statement of our operating results and financial condition, along with an explanation of our calculation of FFO.  HRP’s web site is not incorporated as part of this press release.

 

WARNING REGARDING FORWARD LOOKING STATEMENTS

 

THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS.  THESE FORWARD LOOKING STATEMENTS ARE BASED UPON HRP’S PRESENT BELIEFS AND EXPECTATIONS, BUT THEY ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR.  FOR EXAMPLE:

 

·                  THIS PRESS RELEASE STATES THAT HRP HAS REPURCHASED SOME OF ITS EQUITY AND DEBT SECURITIES.  THE IMPLICATIONS OF THESE STATEMENTS MAY BE THAT HRP WILL CONTINUE TO REPURCHASE ITS EQUITY AND DEBT SECURITIES.  IN FACT, HRP HAS REPURCHASED ITS SECURITIES ON AN OPPORTUNISTIC BASIS, WHEN OPPORTUNITIES TO DO SO HAVE BEEN AVAILABLE AT PRICES HRP BELIEVES ARE ATTRACTIVE AND HRP HAS AVAILABLE FINANCIAL RESOURCES. HRP MAY ACCELERATE, DELAY, DISCONTINUE OR RESTART MAKING SUCH PURCHASES AT ANY TIME, IN ITS DISCRETION.

 

RESULTS DIFFERENT FROM THOSE STATED OR IMPLIED BY FORWARD LOOKING STATEMENTS MAY OCCUR FOR MANY DIFFERENT REASONS, SOME OF WHICH, LIKE CHANGES IN THE PRICES OF THE SECURITIES AVAILABLE FOR PURCHASE, ARE ONLY PARTIALLY WITHIN HRP’S CONTROL, AND SOME OF WHICH, SUCH AS CHANGES IN FINANCIAL MARKET CONDITIONS GENERALLY, ARE BEYOND HRP’S CONTROL.

 

INVESTORS SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS AND THEIR IMPLICATIONS IN THIS PRESS RELEASE.

 

EXCEPT AS REQUIRED BY LAW, HRP DOES NOT ASSUME ANY OBLIGATIONS TO UPDATE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, CHANGED CIRCUMSTANCES, FUTURE EVENTS OR OTHERWISE.

 

3


 

HRPT Properties Trust

Consolidated Statements of Income and Funds from Operations

(amounts in thousands, except per share data)

 

 

 

Quarter Ended
March 31,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

Rental income

 

$

216,923

 

$

201,172

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

Operating expenses

 

91,739

 

81,217

 

Depreciation and amortization

 

48,390

 

44,813

 

General and administrative

 

9,487

 

8,862

 

Acquisition costs

 

259

 

—

 

Total expenses

 

149,875

 

134,892

 

 

 

 

 

 

 

Operating income

 

67,048

 

66,280

 

 

 

 

 

 

 

Interest income

 

145

 

329

 

Interest expense (including amortization of debt discounts, premiums and deferred financing fees of $1,642 and $1,095, respectively)

 

(43,859

)

(45,040

)

Gain on early extinguishment of debt

 

7,513

 

—

 

Income from continuing operations before income tax expense

 

30,847

 

21,569

 

Income tax expense

 

(152

)

(164

)

Income from continuing operations

 

30,695

 

21,405

 

Discontinued operations:

 

 

 

 

 

Income from discontinued operations

 

3,672

 

6,001

 

Gain on sale of property

 

8,745

 

—

 

Net income

 

43,112

 

27,406

 

Preferred distributions

 

(12,667

)

(12,667

)

Net income available for common shareholders

 

$

30,445

 

$

14,739

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Funds from Operations, or FFO (1):

 

 

 

 

 

Net income

 

$

43,112

 

$

27,406

 

Plus: depreciation and amortization from continuing operations

 

48,390

 

44,813

 

Plus: depreciation and amortization from discontinued operations

 

11

 

3,550

 

Plus: acquisition costs (2)

 

259

 

—

 

Less: gain on early extinguishment of debt

 

(7,513

)

—

 

Less: gain on sale of property

 

(8,745

)

—

 

FFO

 

75,514

 

75,769

 

Less: preferred distributions

 

(12,667

)

(12,667

)

FFO available for common shareholders

 

$

62,847

 

$

63,102

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — basic

 

225,619

 

225,444

 

Weighted average common shares outstanding — diluted (3)

 

254,812

 

254,637

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

Income from continuing operations available for common shareholders — basic and diluted

 

$

0.08

 

$

0.04

 

Income from discontinued operations — basic and diluted

 

$

0.06

 

$

0.03

 

Net income available for common shareholders — basic and diluted

 

$

0.13

 

$

0.07

 

FFO available for common shareholders — basic

 

$

0.28

 

$

0.28

 

FFO available for common shareholders — diluted

 

$

0.27

 

$

0.27

 

 

 

 

 

 

 

Common distributions paid

 

$

0.12

 

$

0.21

 

 

4


 

HRPT Properties Trust

Consolidated Statements of Income and Funds from Operations

(amounts in thousands, except per share data)

 

(1)          We compute FFO as shown in the calculations above.  Our calculations of FFO differ from the National Association of Real Estate Investment Trusts, or NAREIT, definition because we exclude acquisition costs as described in Note 2 below, gain on early extinguishment of debt and 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 amounts, such as depreciation expense and gains or losses on sales of depreciated operating properties, FFO can facilitate a comparison of operating performance among REITs.  FFO does not represent cash generated by operating activities in accordance with generally accepted accounting principles, or GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity.  Also, some REITs may calculate FFO differently than us.

 

(2)          Acquisition costs are expensed under Statement of Financial Accounting Standards No. 141(R), “Business Combinations” commencing January 1, 2009.

 

(3)          As of March 31, 2009, our 15,180 outstanding series D preferred shares were convertible into 29,193 common shares.  The effect of a conversion of our series D convertible preferred shares on income from continuing operations available for common shareholders per share is anti-dilutive to income, but dilutive to FFO for the quarters ended March 31, 2009 and 2008.  Set forth below is the calculation of diluted net income available for common shareholders, diluted FFO available for common shareholders and diluted weighted average common shares outstanding.

 

 

 

Quarter Ended
March 31,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

30,445

 

$

14,739

 

Add - Series D convertible preferred distributions

 

6,167

 

6,167

 

Net income available for common shareholders — diluted

 

$

36,612

 

$

20,906

 

 

 

 

 

 

 

FFO available for common shareholders

 

$

62,847

 

$

63,102

 

Add - Series D convertible preferred distributions

 

6,167

 

6,167

 

FFO available for common shareholders — diluted

 

$

69,014

 

$

69,269

 

 

 

 

 

 

 

Weighted average common shares outstanding — basic

 

225,619

 

225,444

 

Effect of dilutive Series D preferred shares

 

29,193

 

29,193

 

Weighted average common shares outstanding — diluted

 

254,812

 

254,637

 

 

5


 

HRPT Properties Trust

Consolidated Balance Sheets

(amounts in thousands, except share data)

 

 

 

March 31,

 

December 31,

 

 

 

2009

 

2008

 

 

 

 

 

(audited)

 

ASSETS

 

 

 

 

 

Real estate properties:

 

 

 

 

 

Land

 

$

1,242,053

 

$

1,220,554

 

Buildings and improvements

 

5,051,996

 

5,021,703

 

 

 

6,294,049

 

6,242,257

 

Accumulated depreciation

 

(894,801

)

(862,958

)

 

 

5,399,248

 

5,379,299

 

Properties held for sale

 

135,760

 

145,849

 

Acquired real estate leases, net

 

159,428

 

164,308

 

Cash and cash equivalents

 

35,317

 

15,518

 

Restricted cash

 

9,880

 

10,837

 

Rents receivable, net of allowance for doubtful accounts of $8,305 and $8,492, respectively

 

203,034

 

196,839

 

Other assets, net

 

127,784

 

103,449

 

Total assets

 

6,070,451

 

$

6,016,099

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Revolving credit facility

 

$

297,000

 

$

201,000

 

Senior unsecured debt, net

 

2,209,804

 

2,241,225

 

Mortgage notes payable, net

 

445,705

 

447,693

 

Other liabilities related to properties held for sale

 

3,451

 

3,400

 

Accounts payable and accrued expenses

 

96,597

 

99,285

 

Acquired real estate lease obligations, net

 

45,577

 

47,839

 

Rent collected in advance

 

31,486

 

26,537

 

Security deposits

 

17,722

 

17,935

 

Due to affiliates

 

13,357

 

10,073

 

Total liabilities

 

3,160,699

 

3,094,987

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

Preferred shares of beneficial interest, $0.01 par value:

 

 

 

 

 

50,000,000 shares authorized;

 

 

 

 

 

Series B preferred shares; 8 3/4% cumulative redeemable at par on or after September 12, 2007; 7,000,000 shares issued and outstanding, aggregate liquidation preference $175,000

 

169,079

 

169,079

 

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

 

145,015

 

145,015

 

Series D preferred shares; 6 1/2% cumulative convertible; 15,180,000 shares issued and outstanding, aggregate liquidation preference $379,500

 

368,270

 

368,270

 

Common shares of beneficial interest, $0.01 par value:

 

 

 

 

 

350,000,000 shares authorized; 223,683,241 and 227,731,938 shares issued and outstanding, respectively

 

2,237

 

2,277

 

Additional paid in capital

 

2,923,549

 

2,937,986

 

Cumulative net income

 

2,115,366

 

2,072,254

 

Cumulative common distributions

 

(2,469,169

)

(2,441,841

)

Cumulative preferred distributions

 

(344,595

)

(331,928

)

Total shareholders’ equity

 

2,909,752

 

2,921,112

 

Total liabilities and shareholders’ equity

 

$

6,070,451

 

$

6,016,099

 

 

6

 EX-99.2 3 a09-12731_1ex99d2.htm EX-99.2

Exhibit 99.2

 

 

HRPT PROPERTIES TRUST

 

First Quarter 2009

 

Supplemental Operating and Financial Data

 

All amounts in this report are unaudited, except for the

December 31, 2008 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

Calculation of Diluted Net Income, FFO and Weighted Average Common Shares Outstanding

16

Summary Results of Operations by Property Type

17

Summary Results of Operations by Major Market

18

Same Property Results and Analysis by Property Type

19

Same Property Results and Analysis by Major Market

20

Debt Summary

21

Debt Maturity Schedule

22

Leverage Ratios, Coverage Ratios and Public Debt Covenants

23

Tenant Improvements, Leasing Costs and Capital Improvements

24

2009 Acquisitions and Dispositions Information

25

2009 Financing Activities

26

 

 

PORTFOLIO AND LEASING INFORMATION

 

 

 

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

28

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

29

Summary of Properties by Major Market

30

Leasing Summary

31

Occupancy and Leasing Analysis by Property Type and Major Market (3 Months Ended 3/31/2009)

32

Tenants Representing 1% or More of Total Rent

33

Three Year Lease Expiration Schedule by Property Type

34

Three Year Lease Expiration Schedule by Major Market

35

Portfolio Lease Expiration Schedule

36

 

2


 

WARNING REGARDING

FORWARD LOOKING STATEMENTS

 

THIS SUPPLEMENTAL OPERATING AND FINANCIAL DATA REPORT CONTAINS STATEMENTS WHICH CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS.  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:

 

· IF THE AVAILABILITY OF DEBT CAPITAL REMAINS RESTRICTED OR BECOMES MORE RESTRICTED, WE MAY BE UNABLE TO REPAY OUR DEBT OBLIGATIONS WHEN THEY BECOME DUE OR TO REFINANCE ON TERMS WHICH ARE AS FAVORABLE AS WE NOW HAVE,

 

· 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

 

· WE MAY BE UNABLE TO MAINTAIN OUR CURRENT RATE OF DISTRIBUTIONS AND FUTURE DISTRIBUTIONS MAY BE SUSPENDED OR PAID AT A LESSER RATE THAN THE DISTRIBUTIONS WE NOW PAY.

 

OTHER RISKS MAY ADVERSELY IMPACT US, AS DESCRIBED MORE FULLY IN OUR ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2008, UNDER “ITEM 1A. RISK FACTORS.”

 

YOU SHOULD NOT PLACE UNDUE RELIANCE UPON ANY 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

March 31, 2009

 

COMPANY PROFILE

 

The Company:

 

HRPT Properties Trust, or HRP, is a real estate investment trust, or REIT, which primarily owns office buildings located throughout the United States.  The majority of our properties are commercial office buildings located in suburban areas and central business districts, or CBDs, of major metropolitan markets.  As of March 31, 2009, we also owned approximately 17 million square feet of leased industrial and commercial lands in Oahu, Hawaii.  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, the S&P REIT Composite Index and the FTSE NAREIT 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 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 generally consider ourselves to be a long term investor and we 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 off balance sheet entities.

 

Management:

 

HRP is managed by Reit Management & Research LLC, or RMR.  RMR was founded in 1986 to manage public investments in real estate.  As of March 31, 2009, RMR managed one of the largest portfolios of publicly owned real estate in North America, including more than 1,300 properties, located in 45 states, Washington, DC, Puerto Rico and Ontario, Canada.  RMR has approximately 580 employees in its headquarters and regional offices located throughout the U.S.  In addition to managing HRP, RMR manages Hospitality Properties Trust, or HPT, a publicly traded REIT that owns hotels and travel centers, and Senior Housing Properties Trust, or SNH, a publicly traded REIT that primarily owns healthcare properties.  RMR also provides management services to Five Star Quality Care, Inc., a healthcare services company which is a tenant of SNH, and to TravelCenters of America LLC, a tenant of HPT.  An affiliate of RMR, RMR Advisors, Inc., is the investment manager of several publicly traded mutual funds, the RMR Funds, which principally invest in securities of unaffiliated real estate companies.  The public companies managed by RMR and its affiliates had combined total gross assets of approximately $16 billion as of March 31, 2009.  We believe that being managed by RMR is a competitive advantage for HRP because RMR provides us with a depth and quality of management and experience which may be unequaled in the real estate industry.  We also believe RMR provides management services to HRP at costs that are lower than we 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 3/31/09) (1):

 

Total properties

 

 

 

 

 

541

 

Total sq. ft. (000s)

 

 

 

 

 

67,276

 

Percent leased

 

 

 

 

 

89.5

%

 

 

 

 

 

 

 

 

Portfolio Concentration by Sq. Ft. (as of 3/31/09) (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial

 

 

 

 

 

Office

 

and Other

 

Total

 

CBD

 

18.4

%

0.2

%

18.6

%

Suburban

 

36.3

%

45.1

%

81.4

%

Total

 

54.7

%

45.3

%

100.0

%

 

 

 

 

 

 

 

 

Portfolio Concentration by NOI (Q1 2009) (1) (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial

 

 

 

 

 

Office

 

and Other

 

Total

 

CBD

 

32.1

%

0.4

%

32.5

%

Suburban

 

46.6

%

20.9

%

67.5

%

Total

 

78.7

%

21.3

%

100.0

%

 

 

 

 

 

 

 

 

Portfolio Concentration by Major Market (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3/31/09

 

Q1 2009

 

 

 

 

 

Sq. Ft.

 

NOI

 

Metro Philadelphia, PA

 

 

 

7.9

%

12.2

%

Oahu, HI

 

 

 

26.6

%

11.5

%

Metro Washington, DC

 

 

 

3.6

%

9.2

%

Southern California

 

 

 

1.7

%

5.4

%

Metro Boston, MA

 

 

 

3.9

%

5.2

%

Other Markets

 

 

 

56.3

%

56.5

%

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; see page 14 for the calculation of NOI and a reconciliation of NOI to Net Income.

 

5


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

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 & Chief Investment Officer

 

Senior Vice President & Chief Operating Officer

 

 

 

John C. Popeo

 

 

Treasurer & Chief Financial Officer

 

 

 

 

 

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@hrpreit.com.

(t) (617) 332-3990

 

 

(f) (617) 332-2261

 

Investor and media inquiries should be directed to

(e-mail) info@hrpreit.com

 

Timothy A. Bonang, Director of Investor Relations, at

(website) www.hrpreit.com

 

(617) 796-8222 or tbonang@hrpreit.com, or

 

 

Katherine L. Johnston, Manager of Investor Relations, at

 

 

(617) 796-8222 or kjohnston@hrpreit.com.

 

6


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

RESEARCH COVERAGE

 

Equity Research Coverage

 

 

 

B.G.B. Securities

 

Oppenheimer

David Shapiro

 

Mark Biffert

(703) 528-5782

 

(212) 667-7062

 

 

 

Citigroup

 

RBC Capital Markets

Michael Bilerman

 

David Rodgers

(212) 816-1383

 

(440) 715-2647

 

 

 

Macquarie Research

 

Raymond James

Nick Pirsos

 

Paul Puryear

(212) 231-2457

 

(727) 573-3800

 

 

 

Merrill Lynch

 

Stifel, Nicolaus

Ian Weissman

 

John Guinee

(212) 449-6255

 

(443) 224-1307

 

 

 

Debt Research Coverage

 

 

 

Citigroup

 

Merrill Lynch

Thomas Cook

 

John Forrey

(212) 723-1112

 

(212) 449-1812

 

 

 

Credit Suisse

 

Wachovia

John Giordano

 

Thierry Perrin

(212) 538-4935

 

(704) 715-8455

 

 

 

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

March 31, 2009

 

KEY FINANCIAL DATA

(amounts in thousands, except per share data)

 

 

 

As of and For the Three Months Ended

 

 

 

3/31/2009

 

12/31/2008

 

9/30/2008

 

6/30/2008

 

3/31/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (at end of period)

 

223,683

 

227,732

 

227,696

 

225,464

 

225,444

 

Common shares outstanding (at end of period) — diluted (1)

 

252,876

 

256,925

 

256,889

 

254,657

 

254,637

 

Preferred shares outstanding (at end of period) (1)

 

28,180

 

28,180

 

28,180

 

28,180

 

28,180

 

Weighted average common shares and units outstanding - basic

 

225,619

 

227,704

 

227,251

 

225,449

 

225,444

 

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

 

254,812

 

256,897

 

256,444

 

254,642

 

254,637

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

Price at end of period

 

$

3.19

 

$

3.37

 

$

6.89

 

$

6.77

 

$

6.73

 

High during period

 

$

4.19

 

$

6.98

 

$

8.33

 

$

8.00

 

$

8.56

 

Low during period

 

$

2.48

 

$

1.57

 

$

6.43

 

$

6.75

 

$

6.58

 

Annualized dividends paid per share (2)

 

$

0.48

 

$

0.84

 

$

0.84

 

$

0.84

 

$

0.84

 

Annualized dividend yield (at end of period) (2)

 

15.0

%

24.9

%

12.2

%

12.4

%

12.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

6,070,451

 

$

6,016,099

 

$

6,070,543

 

$

6,003,146

 

$

5,959,846

 

Total liabilities

 

$

3,160,699

 

$

3,094,987

 

$

3,152,435

 

$

3,124,668

 

$

3,089,567

 

Gross book value of real estate assets (3)

 

$

6,709,405

 

$

6,663,247

 

$

6,604,601

 

$

6,517,894

 

$

6,501,910

 

Total debt / gross book value of real estate (3)

 

44.0

%

43.4

%

44.4

%

45.0

%

44.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Book Capitalization:

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

$

2,952,509

 

$

2,889,918

 

$

2,930,955

 

$

2,932,959

 

$

2,911,699

 

Plus: total stockholders’ equity

 

2,909,752

 

2,921,112

 

2,918,108

 

2,878,478

 

2,870,279

 

Total book capitalization

 

$

5,862,261

 

$

5,811,030

 

$

5,849,063

 

$

5,811,437

 

$

5,781,978

 

Total debt / total book capitalization

 

50.4

%

49.7

%

50.1

%

50.5

%

50.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Market Capitalization:

 

 

 

 

 

 

 

 

 

 

 

Total debt (book value)

 

$

2,952,509

 

$

2,889,918

 

$

2,930,955

 

$

2,932,959

 

$

2,911,699

 

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

 

274,658

 

298,920

 

424,374

 

556,585

 

557,678

 

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

 

713,549

 

767,457

 

1,568,825

 

1,526,391

 

1,517,238

 

Total market capitalization

 

$

3,940,716

 

$

3,956,295

 

$

4,924,154

 

$

5,015,935

 

$

4,986,615

 

Total debt / total market capitalization

 

74.9

%

73.0

%

59.5

%

58.5

%

58.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Selected Income Statement Data (4):

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

216,923

 

$

218,406

 

$

211,689

 

$

204,273

 

$

215,164

 

EBITDA (5)

 

$

119,266

 

$

120,603

 

$

120,597

 

$

121,328

 

$

121,157

 

Property net operating income (NOI) (6)

 

$

125,184

 

$

124,486

 

$

122,615

 

$

120,526

 

$

130,201

 

NOI margin (7)

 

57.7

%

57.0

%

57.9

%

59.0

%

60.5

%

Net income

 

$

43,112

 

$

63,463

 

$

85,724

 

$

68,052

 

$

27,406

 

Preferred distributions

 

$

(12,667

)

$

(12,667

)

$

(12,667

)

$

(12,667

)

$

(12,667

)

Net income available for common shareholders

 

$

30,445

 

$

50,796

 

$

73,057

 

$

55,385

 

$

14,739

 

Funds from operations (FFO) (8)

 

$

75,514

 

$

74,825

 

$

74,998

 

$

76,767

 

$

75,769

 

FFO available for common shareholders (8)

 

$

62,847

 

$

62,158

 

$

62,331

 

$

64,100

 

$

63,102

 

Common distributions paid

 

$

27,328

 

$

47,816

 

$

47,800

 

$

47,343

 

$

47,343

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data (1):

 

 

 

 

 

 

 

 

 

 

 

Net income available for common shareholders — basic and diluted

 

$

0.13

 

$

0.22

 

$

0.32

 

$

0.25

 

$

0.07

 

FFO available for common shareholders — basic (8)

 

$

0.28

 

$

0.27

 

$

0.27

 

$

0.28

 

$

0.28

 

FFO available for common shareholders — diluted (1) (8)

 

$

0.27

 

$

0.27

 

$

0.27

 

$

0.28

 

$

0.27

 

Common distributions paid (2)

 

$

0.12

 

$

0.21

 

$

0.21

 

$

0.21

 

$

0.21

 

FFO payout ratio (2)

 

43.5

%

76.9

%

76.7

%

73.9

%

75.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

EBITDA (5) / interest expense

 

2.7

x

2.6

x

2.7

x

2.7

x

2.7

x

EBITDA (5) / interest expense and preferred distributions

 

2.1

x

2.1

x

2.1

x

2.1

x

2.1

x

 

(1)

As of 3/31/2009, we had 15,180 preferred shares outstanding that were convertible into 29,193 common shares. See page 16 for calculations of diluted net income, FFO and weighted average common shares outstanding.

(2)

The amounts stated are based on the amounts paid during the periods. On January 9, 2009, HRP lowered its quarterly dividend rate to $0.12/share ($0.48/share annualized).

(3)

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

(4)

Prior periods reflect amounts previously reported and excludes retroactive adjustments for properties subsequently classified in discontinued operations.

(5)

See page 13 for calculation of EBITDA.

(6)

Property net operating income, or NOI, is defined as rental income from real estate less property operating expenses; see page 14 for calculation of NOI and reconciliation of NOI to Net Income.

(7)

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

(8)

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

 

9


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

 

 

 

As of
March 31,
2009

 

As of
December 31,
2008

 

 

 

 

 

(audited)

 

ASSETS

 

 

 

 

 

Real estate properties:

 

 

 

 

 

Land

 

$

1,242,053

 

$

1,220,554

 

Buildings and improvements

 

5,051,996

 

5,021,703

 

 

 

6,294,049

 

6,242,257

 

Accumulated depreciation

 

(894,801

)

(862,958

)

 

 

5,399,248

 

5,379,299

 

Properties held for sale

 

135,760

 

145,849

 

Acquired real estate leases, net

 

159,428

 

164,308

 

Cash and cash equivalents

 

35,317

 

15,518

 

Restricted cash

 

9,880

 

10,837

 

Rents receivable, net of allowance for doubtful accounts of $8,305 and $8,492, respectively

 

203,034

 

196,839

 

Other assets, net

 

127,784

 

103,449

 

Total assets

 

$

6,070,451

 

$

6,016,099

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Revolving credit facility

 

$

297,000

 

$

201,000

 

Senior unsecured debt, net

 

2,209,804

 

2,241,225

 

Mortgage notes payable, net

 

445,705

 

447,693

 

Other liabilities related to properties held for sale

 

3,451

 

3,400

 

Accounts payable and accrued expenses

 

96,597

 

99,285

 

Acquired real estate lease obligations, net

 

45,577

 

47,839

 

Rent collected in advance

 

31,486

 

26,537

 

Security deposits

 

17,722

 

17,935

 

Due to affiliates

 

13,357

 

10,073

 

Total liabilities

 

3,160,699

 

3,094,987

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

Preferred shares of beneficial interest, $0.01 par value:

 

 

 

 

 

50,000,000 shares authorized;

 

 

 

 

 

Series B preferred shares; 8 3/4% cumulative redeemable at par on or after September 12, 2007; 7,000,000 shares issued and and outstanding, aggregate liquidation preference $175,000

 

169,079

 

169,079

 

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

 

145,015

 

145,015

 

Series D preferred shares; 6 1/2% cumulative convertible; 15,180,000 shares issued and outstanding, aggregate liquidation preference $379,500

 

368,270

 

368,270

 

Common shares of beneficial interest, $0.01 par value:

 

 

 

 

 

350,000,000 shares authorized; 223,683,241 and 227,731,938 shares issued and outstanding, respectively

 

2,237

 

2,277

 

Additional paid in capital

 

2,923,549

 

2,937,986

 

Cumulative net income

 

2,115,366

 

2,072,254

 

Cumulative common distributions

 

(2,469,169

)

(2,441,841

)

Cumulative preferred distributions

 

(344,595

)

(331,928

)

Total shareholders’ equity

 

2,909,752

 

2,921,112

 

Total liabilities and shareholders’ equity

 

$

6,070,451

 

$

6,016,099

 

 

10


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

CONSOLIDATED STATEMENTS OF INCOME

(amounts in thousands, except per share data)

 

 

 

For the Three Months Ended

 

 

 

3/31/2009

 

3/31/2008

 

 

 

 

 

 

 

Rental income (1)

 

$

216,923

 

$

201,172

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

Operating expenses

 

91,739

 

81,217

 

Depreciation and amortization

 

48,390

 

44,813

 

General and administrative

 

9,487

 

8,862

 

Acquisition costs

 

259

 

—

 

Total expenses

 

149,875

 

134,892

 

 

 

 

 

 

 

Operating income

 

67,048

 

66,280

 

 

 

 

 

 

 

Interest income

 

145

 

329

 

Interest expense (including amortization of debt discounts, premiums and deferred financing fees of $1,642 and $1,095, respectively)

 

(43,859

)

(45,040

)

Gain on early extinguishment of debt

 

7,513

 

—

 

Income from continuing operations before income tax expense

 

30,847

 

21,569

 

Income tax expense

 

(152

)

(164

)

Income from continuing operations

 

30,695

 

21,405

 

Discontinued operations:

 

 

 

 

 

Income from discontinued operations (1)

 

3,672

 

6,001

 

Gain on sale of property

 

8,745

 

—

 

Net income

 

43,112

 

27,406

 

Preferred distributions

 

(12,667

)

(12,667

)

Net income available for common shareholders

 

$

30,445

 

$

14,739

 

 

 

 

 

 

 

Weighted average common shares outstanding — basic

 

225,619

 

225,444

 

 

 

 

 

 

 

Weighted average common shares outstanding — diluted (2)

 

254,812

 

254,637

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

Income from continuing operations available for common shareholders — basic and diluted (2)

 

$

0.08

 

$

0.04

 

Income from discontinued operations — basic and diluted (2)

 

$

0.06

 

$

0.03

 

Net income available for common shareholders — basic and diluted (2)

 

$

0.13

 

$

0.07

 

 

 

 

 

 

 

Additional Data:

 

 

 

 

 

General and administrative expenses / rental income

 

4.37

%

4.41

%

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

 

0.16

%

0.15

%

 

 

 

 

 

 

Continuing Operations:

 

 

 

 

 

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

 

$

608

 

$

1,646

 

Lease value amortization (FAS 141) (1)

 

$

(3,169

)

$

(2,384

)

Lease termination fees included in rental income

 

$

197

 

$

1,007

 

Capitalized interest expense

 

$

—

 

$

—

 

 

 

 

 

 

 

Discontinued Operations:

 

 

 

 

 

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

 

$

85

 

$

341

 

Lease value amortization (FAS 141) (1)

 

$

—

 

$

(129

)

 

(1)

We report rental income on a straight line basis over the terms of the respective leases; rental income and income from discontinued operations includes non-cash straight line rent adjustments. Rental income and income from discontinued operations also includes non-cash amortization of intangible lease assets and liabilities.

(2)

As of 3/31/2009, we had 15,180 series D preferred shares outstanding that were convertible into 29,193 common shares. See page 16 for calculations of diluted net income and weighted average common shares outstanding.

 

11


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

 

 

 

For the Three Months Ended

 

 

 

3/31/2009

 

3/31/2008

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

43,112

 

$

27,406

 

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

 

 

 

 

 

Depreciation

 

38,804

 

39,406

 

Amortization of debt discounts, premiums and deferred financing fees

 

1,642

 

1,085

 

Amortization of acquired real estate leases

 

9,898

 

7,473

 

Other amortization

 

2,866

 

3,997

 

Gain on early extinguishment of debt

 

(7,513

)

—

 

Gain on sale of property

 

(8,745

)

—

 

Change in assets and liabilities:

 

 

 

 

 

Decrease in restricted cash

 

3,064

 

6,484

 

Increase in rents receivable and other assets

 

(26,145

)

(19,922

)

Decrease in accounts payable and accrued expenses

 

(2,246

)

(6,217

)

Increase in rent collected in advance

 

5,063

 

728

 

(Decrease) increase in security deposits

 

(276

)

661

 

Increase in due to affiliates

 

3,284

 

930

 

Cash provided by operating activities

 

62,808

 

62,031

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Real estate acquisitions and improvements

 

(67,714

)

(127,168

)

Investment in marketable pass through certificates

 

(6,760

)

—

 

Proceeds from sale of property

 

19,200

 

—

 

Increase in restricted cash

 

(2,107

)

—

 

Cash used in investing activities

 

(57,381

)

(127,168

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Repurchase of common shares

 

(14,486

)

—

 

Repurchase and retirement of outstanding debt securities

 

(24,207

)

—

 

Proceeds from borrowings

 

96,000

 

188,000

 

Payments on borrowings

 

(2,375

)

(50,664

)

Deferred financing fees

 

(565

)

(3

)

Distributions to common shareholders

 

(27,328

)

(47,343

)

Distributions to preferred shareholders

 

(12,667

)

(12,667

)

Cash provided by financing activities

 

14,372

 

77,323

 

 

 

 

 

 

 

Increase in cash and cash equivalents

 

19,799

 

12,186

 

Cash and cash equivalents at beginning of period

 

15,518

 

19,879

 

Cash and cash equivalents at end of period

 

$

35,317

 

$

32,065

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

Interest paid

 

$

51,554

 

$

50,973

 

 

 

 

 

 

 

Non-cash investing activities:

 

 

 

 

 

Real estate acquisitions

 

$

(9

)

$

—

 

 

 

 

 

 

 

Non-cash financing activities:

 

 

 

 

 

Issuance of common shares

 

$

9

 

$

—

 

 

12


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

CALCULATION OF EBITDA

(amounts in thousands)

 

 

 

For the Three Months Ended

 

 

 

3/31/2009

 

3/31/2008

 

 

 

 

 

 

 

Net income

 

$

43,112

 

$

27,406

 

Plus: interest expense from continuing operations

 

43,859

 

45,040

 

Plus: interest expense from discontinued operations

 

—

 

184

 

Plus: income tax expense

 

152

 

164

 

Plus: depreciation and amortization from continuing operations

 

48,390

 

44,813

 

Plus: depreciation and amortization from discontinued operations

 

11

 

3,550

 

Less: gain on early extinguishment of debt

 

(7,513

)

—

 

Less: gain on sale of property

 

(8,745

)

—

 

EBITDA

 

$

119,266

 

$

121,157

 

 

We compute EBITDA, or earnings before interest, taxes, depreciation and amortization, as net income less gains on sales of properties and gain on early extinguishment of debt, plus interest expense, income tax expense and depreciation and amortization.  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.  Also, some REITs may calculate EBITDA differently than us.

 

13


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

CALCULATION AND RECONCILIATION OF PROPERTY NET OPERATING INCOME (NOI)

(amounts in thousands)

 

 

 

For the Three Months Ended

 

 

 

3/31/2009

 

3/31/2008

 

 

 

 

 

 

 

Calculation of NOI (1):

 

 

 

 

 

Rental income

 

$

216,923

 

$

201,172

 

Operating expenses

 

(91,739

)

(81,217

)

Property net operating income (NOI)

 

$

125,184

 

$

119,955

 

 

 

 

 

 

 

Reconciliation of NOI to Net Income:

 

 

 

 

 

 

 

 

 

 

 

Property net operating income

 

$

125,184

 

$

119,955

 

Depreciation and amortization

 

(48,390

)

(44,813

)

General and administrative

 

(9,487

)

(8,862

)

Acquisition costs

 

(259

)

—

 

Operating income

 

67,048

 

66,280

 

 

 

 

 

 

 

Interest income

 

145

 

329

 

Interest expense

 

(43,859

)

(45,040

)

Gain on early extinguishment of debt

 

7,513

 

—

 

Income from continuing operations before income tax expense

 

30,847

 

21,569

 

Income tax expense

 

(152

)

(164

)

Income from continuing operations

 

30,695

 

21,405

 

 

 

 

 

 

 

Income from discontinued operations

 

3,672

 

6,001

 

Gain on sale of property

 

8,745

 

—

 

Net income

 

$

43,112

 

$

27,406

 

 

(1)  Excludes properties classified in discontinued operations.

 

We compute NOI as shown above.  We consider NOI to be an appropriate supplemental measure to net income 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 GAAP, and should not be considered an alternative to net income, net income available for common shareholders or cash flow from operating activities as a measure of financial performance.

 

14


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

CALCULATION OF FUNDS FROM OPERATIONS (FFO)

(amounts in thousands, except per share data)

 

 

 

For the Three Months Ended

 

 

 

3/31/2009

 

3/31/2008

 

 

 

 

 

 

 

Net income

 

$

43,112

 

$

27,406

 

Plus:    depreciation and amortization from continuing operations

 

48,390

 

44,813

 

Plus:    depreciation and amortization from discontinued operations

 

11

 

3,550

 

Plus:    acquisition costs (1)

 

259

 

—

 

Less:    gain on early extinguishment of debt

 

(7,513

)

—

 

Less:    gain on sale of property

 

(8,745

)

—

 

FFO

 

75,514

 

75,769

 

Less:    preferred distributions

 

(12,667

)

(12,667

)

FFO available for common shareholders

 

$

62,847

 

$

63,102

 

 

 

 

 

 

 

Weighted average common shares outstanding — basic

 

225,619

 

225,444

 

 

 

 

 

 

 

Weighted average common shares outstanding — diluted (2)

 

254,812

 

254,637

 

 

 

 

 

 

 

FFO available for common shareholders per share — basic

 

$

0.28

 

$

0.28

 

 

 

 

 

 

 

FFO available for common shareholders per share — diluted (2)

 

$

0.27

 

$

0.27

 

 

(1)

Represents the closing costs associated with acquisitions that are expensed under Statement of Financial Accounting Standards No. 141(R), “Business Combinations”.

 

 

(2)

At 3/31/2009, we had 15,180 series D preferred shares outstanding that were convertible into 29,193 common shares.  See page 16 for calculations of diluted FFO available for common shareholders and weighted average common shares outstanding.

 

We compute FFO, FFO available for common shareholders and diluted 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 exclude acquisition costs as described in Note 1 above, gain on early extinguishment of debt and 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 amounts, such as depreciation expense and gains or losses on sales of depreciated operating properties, FFO can facilitate a comparison of operating performances among REITs.  FFO does not represent cash generated by operating activities in accordance with GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity.  Also, some REITs may calculate FFO differently than us.

 

15


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

CALCULATION OF DILUTED NET INCOME, FFO AND WEIGHTED AVERAGE

COMMON SHARES OUTSTANDING

(amounts in thousands)

 

 

 

For the Three Months Ended

 

 

 

3/31/2009

 

3/31/2008

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

30,445

 

$

14,739

 

Add — Series D convertible preferred distributions (1)

 

6,167

 

6,167

 

Net income available for common shareholders — diluted

 

$

36,612

 

$

20,906

 

 

 

 

 

 

 

FFO available for common shareholders (2)

 

$

62,847

 

$

63,102

 

Add — Series D convertible preferred distributions (1)

 

6,167

 

6,167

 

FFO available for common shareholders — diluted

 

$

69,014

 

$

69,269

 

 

 

 

 

 

 

Weighted average common shares outstanding — basic

 

225,619

 

225,444

 

Effect of dilutive Series D preferred shares (1)

 

29,193

 

29,193

 

Weighted average common shares outstanding — diluted

 

254,812

 

254,637

 

 

(1)

As of 3/31/2009, we had 15,180 series D preferred shares outstanding that were convertible into 29,193 common shares.

(2)

See page 15 for calculation of FFO available for common shareholders.

 

 

16


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

SUMMARY RESULTS OF OPERATIONS BY PROPERTY TYPE

(dollars and sq. ft. in thousands)

 

 

 

As of and For the Three Months Ended (1)

 

 

 

3/31/2009

 

3/31/2008

 

 

 

 

 

 

 

Number of Properties:

 

 

 

 

 

 

 

 

 

 

 

Office

 

357

 

319

 

Industrial and Other

 

184

 

169

 

Total

 

541

 

488

 

 

 

 

 

 

 

CBD

 

46

 

44

 

Suburban

 

495

 

444

 

Total

 

541

 

488

 

 

 

 

 

 

 

Square Feet (2):

 

 

 

 

 

 

 

 

 

 

 

Office

 

36,763

 

33,946

 

Industrial and Other

 

30,513

 

29,111

 

Total

 

67,276

 

63,057

 

 

 

 

 

 

 

CBD

 

12,488

 

11,773

 

Suburban

 

54,788

 

51,284

 

Total

 

67,276

 

63,057

 

 

 

 

 

 

 

Percent Leased (3):

 

 

 

 

 

 

 

 

 

 

 

Office

 

86.8

%

88.5

%

Industrial and Other

 

92.8

%

94.8

%

Total

 

89.5

%

91.4

%

 

 

 

 

 

 

CBD

 

88.0

%

90.0

%

Suburban

 

89.8

%

91.7

%

Total

 

89.5

%

91.4

%

 

 

 

 

 

 

Rental Income (4):

 

 

 

 

 

 

 

 

 

 

 

Office

 

$

179,526

 

$

165,398

 

Industrial and Other

 

37,397

 

35,774

 

Total

 

$

216,923

 

$

201,172

 

 

 

 

 

 

 

CBD

 

$

78,041

 

$

70,335

 

Suburban

 

138,882

 

130,837

 

Total

 

$

216,923

 

$

201,172

 

 

 

 

 

 

 

Property Net Operating Income (NOI) (5):

 

 

 

 

 

 

 

 

 

 

 

Office

 

$

98,605

 

$

93,754

 

Industrial and Other

 

26,579

 

26,201

 

Total

 

$

125,184

 

$

119,955

 

 

 

 

 

 

 

CBD

 

$

40,673

 

$

38,348

 

Suburban

 

84,511

 

81,607

 

Total

 

$

125,184

 

$

119,955

 

 

 

 

 

 

 

NOI Margin (6):

 

 

 

 

 

 

 

 

 

 

 

Office

 

54.9

%

56.7

%

Industrial and Other

 

71.1

%

73.2

%

Total

 

57.7

%

59.6

%

 

 

 

 

 

 

CBD

 

52.1

%

54.5

%

Suburban

 

60.9

%

62.4

%

Total

 

57.7

%

59.6

%

 

(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.

(6)

NOI margin is defined as NOI as a percentage of rental income.

 

17


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

SUMMARY RESULTS OF OPERATIONS BY MAJOR MARKET

(dollars and sq. ft. in thousands)

 

 

 

As of and For the Three Months Ended (1)

 

 

 

3/31/2009

 

3/31/2008

 

Number of Properties:

 

 

 

 

 

Metro Philadelphia, PA

 

19

 

19

 

Oahu, HI

 

57

 

57

 

Metro Washington, DC

 

17

 

17

 

Southern California

 

19

 

19

 

Metro Boston, MA

 

19

 

19

 

Other markets

 

410

 

357

 

Total

 

541

 

488

 

 

 

 

 

 

 

Square Feet (2):

 

 

 

 

 

Metro Philadelphia, PA

 

5,285

 

5,270

 

Oahu, HI

 

17,914

 

17,914

 

Metro Washington, DC

 

2,401

 

2,401

 

Southern California

 

1,174

 

1,174

 

Metro Boston, MA

 

2,599

 

2,599

 

Other markets

 

37,903

 

33,699

 

Total

 

67,276

 

63,057

 

 

 

 

 

 

 

Percent Leased (3):

 

 

 

 

 

Metro Philadelphia, PA

 

86.5

%

90.2

%

Oahu, HI

 

95.2

%

95.1

%

Metro Washington, DC

 

92.4

%

91.4

%

Southern California

 

86.8

%

94.1

%

Metro Boston, MA

 

85.1

%

84.6

%

Other markets

 

87.4

%

90.0

%

Total

 

89.5

%

91.4

%

 

 

 

 

 

 

Rental Income (4):

 

 

 

 

 

Metro Philadelphia, PA

 

$

30,796

 

$

31,648

 

Oahu, HI

 

18,218

 

16,863

 

Metro Washington, DC

 

18,424

 

17,651

 

Southern California

 

9,844

 

9,480

 

Metro Boston, MA

 

12,482

 

11,907

 

Other markets

 

127,159

 

113,623

 

Total

 

$

216,923

 

$

201,172

 

 

 

 

 

 

 

Property Net Operating Income (NOI) (5):

 

 

 

 

 

Metro Philadelphia, PA

 

$

15,308

 

$

16,795

 

Oahu, HI

 

14,354

 

13,159

 

Metro Washington, DC

 

11,489

 

10,906

 

Southern California

 

6,767

 

6,627

 

Metro Boston, MA

 

6,526

 

6,652

 

Other markets

 

70,740

 

65,816

 

Total

 

$

125,184

 

$

119,955

 

 

 

 

 

 

 

NOI Margin (6):

 

 

 

 

 

Metro Philadelphia, PA

 

49.7

%

53.1

%

Oahu, HI

 

78.8

%

78.0

%

Metro Washington, DC

 

62.4

%

61.8

%

Southern California

 

68.7

%

69.9

%

Metro Boston, MA

 

52.3

%

55.9

%

Other markets

 

55.6

%

57.9

%

Total

 

57.7

%

59.6

%

 

(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.

(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 Central Pennsylvania and Wilmington, DE.  Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar.  Oahu, HI includes all properties located on the island of Oahu.

 

18


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

SAME PROPERTY RESULTS AND ANALYSIS BY PROPERTY TYPE

(dollars and sq. ft. in thousands)

 

 

 

As of and For the Three Months Ended (1)

 

 

 

3/31/2009

 

3/31/2008

 

Office:

 

 

 

 

 

Properties

 

317

 

317

 

Total sq. ft.

 

33,093

 

33,093

 

Percent leased (2)

 

86.5

%

88.4

%

Rental income (3)

 

$

 163,530

 

$

 162,690

 

Property net operating income (NOI) (4)

 

$

 89,389

 

$

 92,105

 

NOI % growth

 

-2.9

%

 

 

 

 

 

 

 

 

Industrial and Other:

 

 

 

 

 

Properties

 

165

 

165

 

Total sq. ft.

 

28,942

 

28,942

 

Percent leased (2)

 

92.8

%

95.1

%

Rental income (3)

 

$

 35,103

 

$

 35,559

 

Property net operating income (NOI) (4)

 

$

 25,449

 

$

 26,242

 

NOI % growth

 

-3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD:

 

 

 

 

 

Properties

 

42

 

42

 

Total sq. ft.

 

10,916

 

10,916

 

Percent leased (2)

 

87.3

%

89.9

%

Rental income (3)

 

$

 68,874

 

$

 67,629

 

Property net operating income (NOI) (4)

 

$

 35,929

 

$

 36,702

 

NOI % growth

 

-2.1

%

 

 

 

 

 

 

 

 

Suburban:

 

 

 

 

 

Properties

 

440

 

440

 

Total sq. ft.

 

51,119

 

51,119

 

Percent leased (2)

 

89.9

%

91.9

%

Rental income (3)

 

$

 129,759

 

$

 130,620

 

Property net operating income (NOI) (4)

 

$

 78,909

 

$

 81,645

 

NOI % growth

 

-3.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

Properties

 

482

 

482

 

Total sq. ft.

 

62,035

 

62,035

 

Percent leased (2)

 

89.4

%

91.6

%

Rental income (3)

 

$

 198,633

 

$

 198,249

 

Property net operating income (NOI) (4)

 

$

 114,838

 

$

 118,347

 

NOI % growth

 

-3.0

%

 

 

 

(1)

Based on properties owned continuously since 1/1/2008 and excludes properties classified in discontinued operations.

(2)

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

(3)

Includes some triple net lease rental income.

(4)

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

 

19


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

SAME PROPERTY RESULTS AND ANALYSIS BY MAJOR MARKET

(dollars and sq. ft. in thousands)

 

 

 

As of and For the Three Months Ended (1)

 

 

 

3/31/2009

 

3/31/2008

 

Metro Philadelphia, PA:

 

 

 

 

 

Properties

 

19

 

19

 

Total sq. ft.

 

5,285

 

5,285

 

Percent leased (2)

 

86.5

%

90.2

%

Rental income (3)

 

$

30,796

 

$

31,648

 

Property net operating income (NOI) (4)

 

$

15,308

 

$

16,795

 

NOI % growth

 

-8.9

%

 

 

 

 

 

 

 

 

Oahu, HI:

 

 

 

 

 

Properties

 

56

 

56

 

Total sq. ft.

 

17,793

 

17,793

 

Percent leased (2)

 

95.4

%

95.6

%

Rental income (3)

 

$

17,992

 

$

16,746

 

Property net operating income (NOI) (4)

 

$

14,308

 

$

13,217

 

NOI % growth

 

8.3

%

 

 

 

 

 

 

 

 

Metro Washington, DC:

 

 

 

 

 

Properties

 

17

 

17

 

Total sq. ft.

 

2,401

 

2,401

 

Percent leased (2)

 

92.4

%

91.4

%

Rental income (3)

 

$

18,424

 

$

17,651

 

Property net operating income (NOI) (4)

 

$

11,489

 

$

10,906

 

NOI % growth

 

5.3

%

 

 

 

 

 

 

 

 

Southern California:

 

 

 

 

 

Properties

 

19

 

19

 

Total sq. ft.

 

1,174

 

1,174

 

Percent leased (2)

 

86.8

%

94.1

%

Rental income (3)

 

$

9,844

 

$

9,480

 

Property net operating income (NOI) (4)

 

$

6,767

 

$

6,627

 

NOI % growth

 

2.1

%

 

 

 

 

 

 

 

 

Metro Boston, MA:

 

 

 

 

 

Properties

 

19

 

19

 

Total sq. ft.

 

2,599

 

2,599

 

Percent leased (2)

 

85.1

%

84.6

%

Rental income (3)

 

$

12,482

 

$

11,907

 

Property net operating income (NOI) (4)

 

$

6,526

 

$

6,652

 

NOI % growth

 

-1.9

%

 

 

 

 

 

 

 

 

Other Markets:

 

 

 

 

 

Properties

 

352

 

352

 

Total sq. ft.

 

32,783

 

32,783

 

Percent leased (2)

 

86.9

%

90.0

%

Rental income (3)

 

$

109,095

 

$

110,817

 

Property net operating income (NOI) (4)

 

$

60,440

 

$

64,150

 

NOI % growth

 

-5.8

%

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

Properties

 

482

 

482

 

Total sq. ft.

 

62,035

 

62,035

 

Percent leased (2)

 

89.4

%

91.6

%

Rental income (3)

 

$

198,633

 

$

198,249

 

Property net operating income (NOI) (4)

 

$

114,838

 

$

118,347

 

NOI % growth

 

-3.0

%

 

 

 

(1)

Based on properties owned continuously since 1/1/2008 and excludes properties classified in discontinued operations.

(2)

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

(3)

Includes some triple net lease rental income.

(4)

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

 

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 Central Pennsylvania and 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.

 

20


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

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   See note (2)

 

6.814

%

7.842

%

$

233,693

 

1/31/2011

 

$

225,547

 

1.8

 

Secured debt   One property in Milwaukee, WI

 

7.435

%

7.000

%

30,292

 

6/1/2011

 

29,188

 

2.2

 

Secured debt   One property in Bannockburn, IL

 

8.050

%

5.240

%

24,279

 

6/1/2012

 

22,719

 

3.2

 

Secured debt   Two properties in Rochester, NY

 

6.000

%

6.000

%

5,052

 

10/11/2012

 

4,507

 

3.5

 

Secured debt   One property in Macon, GA

 

4.950

%

6.280

%

13,405

 

5/11/2014

 

11,930

 

5.1

 

Secured debt   One property in Lenexa, KS

 

5.760

%

7.000

%

8,720

 

5/1/2016

 

6,116

 

7.1

 

Secured debt   One property in Jacksonville, FL

 

6.030

%

8.000

%

41,600

 

5/11/2016

 

38,994

 

7.1

 

Secured debt   One property in Birmingham, AL

 

7.360

%

5.610

%

12,878

 

8/1/2016

 

9,333

 

7.3

 

Secured debt   One property in North Haven, CT

 

6.750

%

5.240

%

4,730

 

3/1/2022

 

—

 

12.9

 

Secured debt   One property in Morgan Hill, CA

 

6.140

%

8.000

%

15,689

 

1/5/2023

 

—

 

13.8

 

Secured debt   One property in East Windsor, CT

 

5.710

%

5.240

%

8,940

 

3/1/2026

 

—

 

16.9

 

Secured debt   Two properties in Morgan Hill, CA

 

6.060

%

8.000

%

14,147

 

11/10/2027

 

—

 

18.6

 

Secured debt   One property in Philadelphia, PA (3)

 

6.794

%

7.383

%

40,095

 

1/1/2029

 

2,478

 

19.8

 

Total / weighted average secured fixed rate debt

 

6.710

%

7.406

%

$

453,520

 

 

 

$

350,812

 

5.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Floating Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving credit facility (LIBOR + 55 bps) (4)

 

1.080

%

1.080

%

$

297,000

 

8/22/2010

 

$

297,000

 

1.4

 

Senior notes due 2011 (3-MONTH LIBOR + 60 bps) (5)

 

1.920

%

1.920

%

168,219

 

3/16/2011

 

168,219

 

2.0

 

Total / weighted average unsecured floating rate debt

 

1.384

%

1.384

%

$

465,219

 

 

 

$

465,219

 

1.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Fixed Rate Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior notes due 2010

 

8.875

%

9.000

%

$

30,000

 

8/1/2010

 

$

30,000

 

1.3

 

Senior notes due 2010

 

8.625

%

8.770

%

20,000

 

10/1/2010

 

20,000

 

1.5

 

Senior notes due 2012

 

6.950

%

7.179

%

200,000

 

4/1/2012

 

200,000

 

3.0

 

Senior notes due 2013

 

6.500

%

6.693

%

200,000

 

1/15/2013

 

200,000

 

3.8

 

Senior notes due 2014

 

5.750

%

5.828

%

250,000

 

2/15/2014

 

250,000

 

4.9

 

Senior notes due 2015

 

6.400

%

6.601

%

200,000

 

2/15/2015

 

200,000

 

5.9

 

Senior notes due 2015

 

5.750

%

5.790

%

250,000

 

11/1/2015

 

250,000

 

6.6

 

Senior notes due 2016

 

6.250

%

6.470

%

400,000

 

8/15/2016

 

400,000

 

7.4

 

Senior notes due 2017

 

6.250

%

6.279

%

250,000

 

6/15/2017

 

250,000

 

8.2

 

Senior notes due 2018

 

6.650

%

6.768

%

250,000

 

1/15/2018

 

250,000

 

8.8

 

Total / weighted average unsecured fixed rate debt

 

6.346

%

6.485

%

$

2,050,000

 

 

 

$

2,050,000

 

6.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / weighted average unsecured debt

 

5.428

%

5.541

%

$

2,515,219

 

 

 

$

2,515,219

 

5.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary Debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / weighted average secured fixed rate debt

 

6.710

%

7.406

%

$

453,520

 

 

 

$

350,812

 

5.7

 

Total / weighted average unsecured floating rate debt

 

1.384

%

1.384

%

465,219

 

 

 

465,219

 

1.6

 

Total / weighted average unsecured fixed rate debt

 

6.346

%

6.485

%

2,050,000

 

 

 

2,050,000

 

6.2

 

Total / weighted average debt

 

5.624

%

5.826

%

$

2,968,739

(6)

 

 

$

2,866,031

 

5.4

 

 

(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 1/31/2011.  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.

(4)

Represents amounts outstanding on HRP’s $750 million revolving credit facility at 3/31/2009.  Subject to certain conditions, at HRP’s option, this facility’s maturity date can be extended to 8/22/2011 upon our payment of a fee.  Interest rate at 3/31/2009.

(5)

The notes became prepayable, at par, on September 16, 2006.  Interest rate at 3/31/2009.

(6)

Total debt as of 3/31/2009, net of unamortized premiums and discounts, equals $2,952,509.

 

21


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

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

 

2009

 

$

6,647

 

$

—

 

$

—

 

$

6,647

 

6.7

%

2010

 

9,507

 

297,000

(2)

50,000

 

356,507

 

2.3

%

2011

 

260,302

 

168,219

 

—

 

428,521

 

4.9

%

2012

 

32,335

 

—

 

200,000

 

232,335

 

7.0

%

2013

 

5,080

 

—

 

200,000

 

205,080

 

6.5

%

2014

 

17,119

 

—

 

250,000

 

267,119

 

5.7

%

2015

 

5,415

 

—

 

450,000

 

455,415

 

6.0

%

2016

 

59,219

 

—

 

400,000

 

459,219

 

6.2

%

2017

 

4,345

 

—

 

250,000

 

254,345

 

6.3

%

2018

 

4,632

 

—

 

250,000

 

254,632

 

6.6

%

2019

 

4,938

 

 

 

—

 

4,938

 

6.4

%

2020 and thereafter

 

43,981

 

—

 

—

 

43,981

 

6.5

%

Total

 

$

453,520

 

$

465,219

 

$

2,050,000

 

$

2,968,739

 

5.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Percent

 

15.3

%

15.7

%

69.0

%

100.0

%

 

 

 

(1)

Total debt as of 3/31/2009, net of unamortized premiums and discounts, equals $2,952,509.

(2)

Represents amounts outstanding on HRP’s $750 million revolving credit facility at 3/31/2009.  Subject to certain conditions, at HRP’s option, this facility’s maturity date can be extended to 8/22/2011 upon our payment of a fee.

 

 

22


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS

 

 

 

As of and For the Three Months Ended

 

 

 

3/31/2009

 

12/31/2008

 

9/30/2008

 

6/30/2008

 

3/31/2008

 

Leverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt / total assets

 

48.6

%

48.0

%

48.3

%

48.9

%

48.9

%

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

 

44.0

%

43.4

%

44.4

%

45.0

%

44.8

%

Total debt / total market capitalization

 

74.9

%

73.0

%

59.5

%

58.5

%

58.4

%

Total debt / total book capitalization

 

50.4

%

49.7

%

50.1

%

50.5

%

50.4

%

Secured debt / total assets

 

7.3

%

7.4

%

6.4

%

6.5

%

6.1

%

Variable rate debt / total debt

 

15.8

%

13.9

%

17.2

%

17.1

%

17.4

%

Variable rate debt / total assets

 

7.7

%

6.7

%

8.3

%

8.3

%

8.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA / interest expense

 

2.7

x

2.6

x

2.7

x

2.7

x

2.7

x

EBITDA / interest expense + preferred distributions

 

2.1

x

2.1

x

2.1

x

2.1

x

2.1

x

 

 

 

 

 

 

 

 

 

 

 

 

Public Debt Covenants (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt / adjusted total assets (maximum 60%)

 

43.0

%

42.7

%

42.9

%

43.5

%

43.7

%

Secured debt / adjusted total assets (maximum 40%)

 

6.5

%

6.6

%

5.7

%

5.8

%

5.5

%

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

 

2.7

x

2.7

x

2.7

x

2.7

x

2.6

x

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

 

237.3

%

238.9

%

231.9

%

227.4

%

229.0

%

 

(1)   Gross book value of real estate assets is real estate properties, at cost, including properties held for sale, plus purchase price allocations and acquisition costs 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, loss on asset impairment and gains and losses on sales of assets and early extinguishment of debt, determined together with debt service on a pro forma basis for the four consecutive fiscal quarters most recently ended.

 

23


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

TENANT IMPROVEMENTS, LEASING COSTS AND CAPITAL IMPROVEMENTS

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

 

 

 

For the Three Months Ended

 

 

 

3/31/2009

 

12/31/2008

 

9/30/2008

 

6/30/2008

 

3/31/2008

 

Tenant improvements (TI)

 

$

5,094

 

$

17,611

 

$

15,853

 

$

9,601

 

$

5,178

 

Leasing costs (LC)

 

2,867

 

4,622

 

3,906

 

4,091

 

3,859

 

Total TI and LC

 

7,961

 

22,233

 

19,759

 

13,692

 

9,037

 

 

 

 

 

 

 

 

 

 

 

 

 

Building improvements (1)

 

1,739

 

1,079

 

2,267

 

2,953

 

1,789

 

Development, redevelopment and other activities (2)

 

1,741

 

9,638

 

3,882

 

2,955

 

3,491

 

Total capital improvements, including TI and LC

 

$

11,441

 

$

32,950

 

$

25,908

 

$

19,600

 

$

14,317

 

 

 

 

 

 

 

 

 

 

 

 

 

Sq. ft. beginning of period

 

67,586

 

67,225

 

65,247

 

65,315

 

64,456

 

Sq. ft. end of period

 

67,947

 

67,586

 

67,225

 

65,247

 

65,315

 

Average sq. ft. during period

 

67,767

 

67,406

 

66,236

 

65,281

 

64,886

 

 

 

 

 

 

 

 

 

 

 

 

 

Building improvements per average sq. ft. during period

 

$

0.03

 

$

0.02

 

$

0.03

 

$

0.05

 

$

0.03

 

 

(1)   Building improvements generally include construction costs, expenditures to replace obsolete building components and expenditures that extend the useful life of existing assets.

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

 

24


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

2009 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/Other

 

Properties

 

Sq. Ft.

 

Price (1)

 

Sq. Ft.

 

Rate (2)

 

Term (3)

 

Leased (4)

 

Major Tenant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar-09

 

Fremont, CA

 

Office

 

4

 

392

 

$

57,500

 

$

146.68

 

11.1

%

5.7

 

100.0

%

Boston Scientific Corporation

 

 

 

Q1 2009 Total / Weighted Average

 

 

 

4

 

392

 

57,500

 

146.68

 

11.1

%

5.7

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Weighted Average

 

 

 

4

 

392

 

$

57,500

 

$

146.68

 

11.1

%

5.7

 

100.0

%

 

 

 

Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale Price

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Original

 

Multiple

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Original

 

Sale

 

Purchase

 

of Original

 

Book

 

 

 

Date

 

 

 

Office/

 

Number of

 

 

 

Sale

 

Purchase

 

Price (1) /

 

Price (1) /

 

Purchase

 

Gain (Loss)

 

 

 

Sold

 

Location

 

Industrial/Other

 

Properties

 

Sq. Ft.

 

Price (1)

 

Price (1)

 

Sq. Ft.

 

Sq. Ft.

 

Price

 

on Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan-09

 

White Plains, NY

 

Office

 

1

 

50

 

$

19,250

 

$

12,070

 

$

385.00

 

$

241.40

 

1.6

x

$

8,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

1

 

50

 

$

19,250

 

$

12,070

 

$

385.00

 

$

241.40

 

1.6

x

$

8,745

 

 

 

 

(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 on the date of acquisition.

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

(4)          Percent leased as of the date acquired.

 

25


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

2009 FINANCING ACTIVITIES

(amounts in thousands, except share information)

 

 

 

For the Three
Months Ended

 

 

 

3/31/2009

 

 

 

 

 

Debt Transactions (1):

 

 

 

New debt raised

 

$

—

 

New debt assumed as part of acquisitions

 

$

—

 

Total new debt

 

—

 

 

 

 

 

Debt retired (2)

 

$

(31,781

)

Net debt

 

$

(31,781

)

 

 

 

 

Equity Transactions:

 

 

 

New common shares issued (3)

 

1,303

 

New common equity, net (3)

 

$

9

 

 

 

 

 

New preferred shares issued

 

—

 

New preferred equity raised, net

 

$

—

 

Total new equity

 

$

9

 

 

 

 

 

Common equity repurchased

 

$

(14,486

)

Preferred equity retired

 

$

—

 

Net equity

 

$

(14,477

)

 

(1)

 

Excludes drawings and repayments on our revolving credit facility.

(2)

 

In March 2009, we repurchased and retired $31,781 of our floating rate senior notes due 2011 for $24,207, excluding accrued interest, and recognized a gain on early extinguishment of debt of $7,513, net of unamortized deferred financing fees.

(3)

 

Represents common shares issued in January 2009 related to properties acquired in July 2008.

 

26


 

PORTFOLIO AND LEASING INFORMATION

 


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

PORTFOLIO SUMMARY BY PROPERTY TYPE, TENANT AND MAJOR MARKET (SQUARE FEET) (1) 

(sq. ft. in thousands)

 

 

 

Metro

 

 

 

Metro

 

Southern

 

Metro

 

Other

 

 

 

 

 

Philadelphia, PA

 

Oahu, HI

 

Washington, DC

 

California

 

Boston, MA

 

Markets

 

Total

 

Square Feet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

5,285

 

—

 

2,401

 

1,174

 

2,599

 

25,304

 

36,763

 

Industrial and Other

 

—

 

17,914

 

—

 

—

 

—

 

12,599

 

30,513

 

Total

 

5,285

 

17,914

 

2,401

 

1,174

 

2,599

 

37,903

 

67,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

4,585

 

158

 

681

 

331

 

523

 

6,210

 

12,488

 

Suburban

 

700

 

17,756

 

1,720

 

843

 

2,076

 

31,693

 

54,788

 

Total

 

5,285

 

17,914

 

2,401

 

1,174

 

2,599

 

37,903

 

67,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

17

 

—

 

1,239

 

366

 

211

 

3,517

 

5,350

 

Land leases (2)

 

—

 

16,503

 

—

 

—

 

—

 

—

 

16,503

 

Other investment grade tenants (2)(3)

 

2,287

 

5

 

56

 

76

 

835

 

8,923

 

12,182

 

Other tenants (2)

 

2,265

 

547

 

923

 

576

 

1,167

 

20,683

 

26,161

 

Vacant

 

716

 

859

 

183

 

156

 

386

 

4,780

 

7,080

 

Total

 

5,285

 

17,914

 

2,401

 

1,174

 

2,599

 

37,903

 

67,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Major Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

14

%

0

%

7

%

3

%

7

%

69

%

100

%

Industrial and Other

 

0

%

59

%

0

%

0

%

0

%

41

%

100

%

Total

 

8

%

27

%

4

%

2

%

4

%

55

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

37

%

1

%

6

%

3

%

4

%

49

%

100

%

Suburban

 

1

%

32

%

3

%

2

%

4

%

58

%

100

%

Total

 

8

%

27

%

4

%

2

%

4

%

55

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

0

%

0

%

23

%

7

%

4

%

66

%

100

%

Land leases

 

0

%

100

%

0

%

0

%

0

%

0

%

100

%

Other investment grade tenants (3)

 

19

%

0

%

0

%

1

%

7

%

73

%

100

%

Other tenants

 

9

%

2

%

3

%

2

%

5

%

79

%

100

%

Vacant

 

10

%

12

%

3

%

2

%

6

%

67

%

100

%

Total

 

8

%

27

%

4

%

2

%

4

%

55

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Property Type and Tenant:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

100

%

0

%

100

%

100

%

100

%

67

%

55

%

Industrial and Other

 

0

%

100

%

0

%

0

%

0

%

33

%

45

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

87

%

1

%

28

%

28

%

20

%

16

%

19

%

Suburban

 

13

%

99

%

72

%

72

%

80

%

84

%

81

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

0

%

0

%

52

%

31

%

8

%

9

%

8

%

Land leases

 

0

%

92

%

0

%

0

%

0

%

0

%

24

%

Other investment grade tenants (3)

 

43

%

0

%

2

%

7

%

32

%

23

%

18

%

Other tenants

 

43

%

3

%

38

%

49

%

45

%

55

%

39

%

Vacant

 

14

%

5

%

8

%

13

%

15

%

13

%

11

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

(1) Excludes properties classified in discontinued operations.

(2) Sq. ft. is pursuant to signed leases as of 3/31/2009, 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 Central Pennsylvania and Wilmington, DE.  Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar.  Oahu, HI includes all properties located on the island of Oahu.

 

28


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

 PORTFOLIO SUMMARY BY PROPERTY TYPE, TENANT AND MAJOR MARKET (ANNUALIZED RENTAL INCOME) (1) 

(dollars in thousands)

 

 

 

Metro

 

 

 

Metro

 

Southern

 

Metro

 

Other

 

 

 

 

 

Philadelphia, PA

 

Oahu, HI

 

Washington, DC

 

California

 

Boston, MA

 

Markets

 

Total

 

Annualized Rental Income (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

$

123,153

 

$

—

 

$

73,239

 

$

38,744

 

$

52,468

 

$

443,704

 

$

731,308

 

Industrial and Other

 

—

 

71,876

 

—

 

—

 

—

 

83,267

 

155,143

 

Total

 

$

123,153

 

$

71,876

 

$

73,239

 

$

38,744

 

$

52,468

 

$

526,971

 

$

886,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

$

112,528

 

$

2,177

 

$

29,605

 

$

23,025

 

$

21,043

 

$

122,970

 

$

311,348

 

Suburban

 

10,625

 

69,699

 

43,634

 

15,719

 

31,425

 

404,001

 

575,103

 

Total

 

$

123,153

 

$

71,876

 

$

73,239

 

$

38,744

 

$

52,468

 

$

526,971

 

$

886,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

$

433

 

$

—

 

$

41,547

 

$

8,255

 

$

5,237

 

$

67,734

 

$

123,206

 

Land leases

 

—

 

64,965

 

—

 

—

 

—

 

—

 

64,965

 

Other investment grade tenants (3)

 

62,826

 

337

 

2,060

 

2,019

 

15,139

 

151,281

 

233,662

 

Other tenants

 

59,894

 

6,574

 

29,632

 

28,470

 

32,092

 

307,956

 

464,618

 

Total

 

$

123,153

 

$

71,876

 

$

73,239

 

$

38,744

 

$

52,468

 

$

526,971

 

$

886,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Major Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

17

%

0

%

10

%

5

%

7

%

61

%

100

%

Industrial and Other

 

0

%

46

%

0

%

0

%

0

%

54

%

100

%

Total

 

14

%

8

%

8

%

4

%

6

%

60

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

36

%

1

%

10

%

7

%

7

%

39

%

100

%

Suburban

 

2

%

12

%

8

%

3

%

5

%

70

%

100

%

Total

 

14

%

8

%

8

%

4

%

6

%

60

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

0

%

0

%

34

%

7

%

4

%

55

%

100

%

Land leases

 

0

%

100

%

0

%

0

%

0

%

0

%

100

%

Other investment grade tenants (3)

 

27

%

0

%

1

%

1

%

6

%

65

%

100

%

Other tenants

 

13

%

1

%

7

%

6

%

7

%

66

%

100

%

Total

 

14

%

8

%

8

%

4

%

6

%

60

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent by Property Type and Tenant:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

100

%

0

%

100

%

100

%

100

%

84

%

82

%

Industrial and Other

 

0

%

100

%

0

%

0

%

0

%

16

%

18

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

91

%

3

%

40

%

59

%

40

%

23

%

35

%

Suburban

 

9

%

97

%

60

%

41

%

60

%

77

%

65

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and other government tenants

 

0

%

0

%

57

%

21

%

10

%

13

%

14

%

Land leases

 

0

%

91

%

0

%

0

%

0

%

0

%

7

%

Other investment grade tenants (3)

 

51

%

0

%

3

%

5

%

29

%

29

%

26

%

Other tenants

 

49

%

9

%

40

%

74

%

61

%

58

%

53

%

Total

 

100

%

100

%

100

%

100

%

100

%

100

%

100

%

 

(1) Excludes properties classified in discontinued operations.

(2) Annualized rental income is rents pursuant to signed leases as of 3/31/2009, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

(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 Central Pennsylvania and  Wilmington, DE.  Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar.  Oahu, HI includes all properties located on the island of Oahu.

 

29


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

SUMMARY OF PROPERTIES BY MAJOR MARKET (1) 

 (dollars and sq. ft. in thousands)

 

 

 

As of 3/31/2009

 

Annualized

 

% of Annualized

 

Market

 

Properties

 

Sq. Ft.

 

% Sq. Ft.

 

Rental Income (2)

 

Rental Income (2)

 

Metro Philadelphia, PA

 

19

 

5,285

 

7.9

%

$

123,153

 

13.9

%

Oahu, HI

 

57

 

17,914

 

26.6

%

71,876

 

8.1

%

Metro Washington, DC

 

17

 

2,401

 

3.6

%

73,239

 

8.3

%

Southern California

 

19

 

1,174

 

1.7

%

38,744

 

4.4

%

Metro Boston, MA

 

19

 

2,599

 

3.9

%

52,468

 

5.9

%

Other markets

 

410

 

37,903

 

56.3

%

526,971

 

59.4

%

Total

 

541

 

67,276

 

100.0

%

$

886,451

 

100.0

%

 

 

 

Percent NOI For the Three Months Ended (3)

 

 

 

3/31/2009

 

12/31/2008

 

9/30/2008

 

6/30/2008

 

3/31/2008

 

Metro Philadelphia, PA

 

12.2

%

11.6

%

13.5

%

12.3

%

13.2

%

Oahu, HI

 

11.5

%

9.2

%

10.2

%

10.6

%

10.1

%

Metro Washington, DC

 

9.2

%

9.0

%

7.3

%

9.4

%

9.4

%

Southern California

 

5.4

%

5.2

%

5.2

%

5.4

%

6.9

%

Metro Boston, MA

 

5.2

%

5.5

%

6.4

%

5.8

%

6.6

%

Other markets

 

56.5

%

59.5

%

57.4

%

56.5

%

53.8

%

Total

 

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

 

(1)     Excludes properties classified in discontinued operations.

(2)     Annualized rental income is rents pursuant to signed leases as of 3/31/2009, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

(3)     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.  Prior periods reflect amounts previously reported and excludes retroactive adjustments for properties subsequently reclassified in discontinued operations.

 

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 Central Pennsylvania and Wilmington, DE.  Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar.  Oahu, HI includes all properties located on the island of Oahu.

 

30


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

LEASING SUMMARY (1) 

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

 

 

 

As of and For the Three Months Ended

 

 

 

3/31/2009

 

12/31/2008

 

9/30/2008

 

6/30/2008

 

3/31/2008

 

Properties

 

541

 

537

 

533

 

489

 

537

 

Total sq. ft. (2)

 

67,276

 

66,872

 

66,087

 

63,438

 

65,315

 

Percentage leased

 

89.5

%

90.4

%

90.6

%

90.9

%

91.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Leasing Activity (sq. ft.):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

190

 

221

 

395

 

379

 

273

 

Renewals

 

755

 

638

 

559

 

1,316

 

553

 

Total

 

945

 

859

 

954

 

1,695

 

826

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change in GAAP Rent (3):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

28

%

10

%

20

%

23

%

2

%

Renewals

 

2

%

5

%

13

%

5

%

3

%

Weighted average

 

6

%

6

%

16

%

9

%

2

%

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments (4):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

3,873

 

$

2,857

 

$

7,036

 

$

9,039

 

$

6,325

 

Renewals

 

2,858

 

6,313

 

2,334

 

4,252

 

3,091

 

Total

 

$

6,731

 

$

9,170

 

$

9,370

 

$

13,291

 

$

9,416

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments per Sq. Ft. (4):

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

20.38

 

$

12.93

 

$

17.81

 

$

23.85

 

$

23.17

 

Renewals

 

$

3.79

 

$

9.89

 

$

4.18

 

$

3.23

 

$

5.59

 

Total

 

$

7.12

 

$

10.68

 

$

9.82

 

$

7.84

 

$

11.40

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

New leases

 

6.1

 

5.1

 

6.6

 

6.3

 

6.0

 

Renewals

 

4.7

 

5.9

 

4.8

 

5.4

 

5.4

 

Total

 

5.0

 

5.7

 

5.6

 

5.6

 

5.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Commitments per Sq. Ft. per Year:

 

 

 

 

 

 

 

 

 

 

 

New leases

 

$

3.34

 

$

2.53

 

$

2.70

 

$

3.79

 

$

3.86

 

Renewals

 

$

0.81

 

$

1.68

 

$

0.87

 

$

0.60

 

$

1.04

 

Total

 

$

1.42

 

$

1.87

 

$

1.75

 

$

1.40

 

$

2.04

 

 

(1)          Prior periods reflect amounts previously reported and excludes retroactive adjustments for properties subsequently classified in discontinued operations.

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

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

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

 

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

 

31


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

OCCUPANCY AND LEASING ANALYSIS BY PROPERTY TYPE AND MAJOR MARKET (3 MONTHS ENDED 3/31/2009) (1)

(dollars and sq. ft. in thousands)

 

 

 

Total Sq. Ft.

 

Sq. Ft. Leases Executed During

 

 

 

As of

 

Three Months Ended 3/31/2009

 

Property Type/Market

 

3/31/09

 

New

 

Renewals

 

Total

 

Office

 

36,763

 

137

 

617

 

754

 

Industrial and Other

 

30,513

 

53

 

138

 

191

 

Total

 

67,276

 

190

 

755

 

945

 

 

 

 

 

 

 

 

 

 

 

CBD

 

12,488

 

61

 

257

 

318

 

Suburban

 

54,788

 

129

 

498

 

627

 

Total

 

67,276

 

190

 

755

 

945

 

 

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

5,285

 

3

 

6

 

9

 

Oahu, HI

 

17,914

 

10

 

65

 

75

 

Metro Washington, DC

 

2,401

 

3

 

3

 

6

 

Southern California

 

1,174

 

—

 

55

 

55

 

Metro Boston, MA

 

2,599

 

3

 

—

 

3

 

Other markets

 

37,903

 

171

 

626

 

797

 

Total

 

67,276

 

190

 

755

 

945

 

 

 

 

Sq. Ft. Leased

 

 

 

As of

 

12/31/08

 

 

 

New and

 

Acquisitions /

 

As of

 

3/31/09

 

 

 

12/31/08

 

% Leased (2)

 

Expired

 

Renewals

 

(Sales)

 

3/31/09

 

% Leased

 

Office

 

31,762

 

87.4

%

(1,015

)

754

 

392

 

31,893

 

86.8

%

Industrial and Other

 

28,697

 

94.1

%

(585

)

191

 

—

 

28,303

 

92.8

%

Total

 

60,459

 

90.4

%

(1,600

)

945

 

392

 

60,196

 

89.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBD

 

10,993

 

88.1

%

(320

)

318

 

—

 

10,991

 

88.0

%

Suburban

 

49,466

 

90.9

%

(1,280

)

627

 

392

 

49,205

 

89.8

%

Total

 

60,459

 

90.4

%

(1,600

)

945

 

392

 

60,196

 

89.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metro Philadelphia, PA

 

4,589

 

87.0

%

(29

)

9

 

—

 

4,569

 

86.5

%

Oahu, HI

 

17,142

 

95.7

%

(163

)

75

 

—

 

17,054

 

95.2

%

Metro Washington, DC

 

2,219

 

92.4

%

(6

)

6

 

—

 

2,219

 

92.4

%

Southern California

 

1,036

 

88.3

%

(72

)

55

 

—

 

1,019

 

86.8

%

Metro Boston, MA

 

2,213

 

85.1

%

(4

)

3

 

—

 

2,212

 

85.1

%

Other markets

 

33,260

 

88.7

%

(1,326

)

797

 

392

 

33,123

 

87.4

%

Total

 

60,459

 

90.4

%

(1,600

)

945

 

392

 

60,196

 

89.5

%

 

(1) Excludes properties classified in discontinued operations.

(2) Based on total sq. ft. as of December 31, 2008; 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 Central Pennsylvania and Wilmington, DE.  Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar.  Oahu, HI includes all properties located on the island of Oahu.

 

32


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

TENANTS REPRESENTING 1% OR MORE OF TOTAL RENT (1)

(sq. ft. in thousands)

 

 

 

 

 

% of Total

 

% of Rental

 

 

 

Tenant

 

Sq. Ft. (2)

 

Sq. Ft. (2)

 

Income (3)

 

Expiration

 

1

U.S. Government

 

4,668

 

7.8

%

12.5

%

2009 to 2024

 

2

PNC Financial Services Group

 

701

 

1.2

%

1.9

%

2011 to 2021

 

3

GlaxoSmithKline plc

 

608

 

1.0

%

1.7

%

2013

 

4

Jones Day

 

407

 

0.7

%

1.3

%

2012, 2019

 

5

Wells Fargo Bank

 

393

 

0.7

%

1.2

%

2009 to 2017

 

6

Flextronics International Ltd.

 

894

 

1.5

%

1.2

%

2014

 

7

ING

 

410

 

0.7

%

1.1

%

2011, 2018

 

8

JDA Software Group, Inc.

 

283

 

0.5

%

1.0

%

2012

 

 

Total

 

8,364

 

14.1

%

21.9

%

 

 

 

(1)

Excludes properties classified in discontinued operations.

(2)

Sq. ft. is pursuant to signed leases as of 3/31/2009, 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)

Rental income is rents pursuant to signed leases as of 3/31/2009, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

 

33


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

THREE YEAR LEASE EXPIRATION SCHEDULE BY PROPERTY TYPE (1)

(dollars and sq. ft. in thousands)

 

 

 

Total as of
3/31/2009

 

2009

 

2010

 

2011

 

2012 and
Thereafter

 

 

 

 

 

 

 

 

 

 

 

 

 

Office:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

36,763

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

31,893

 

2,551

 

3,725

 

4,571

 

21,046

 

Percent

 

100.0

%

8.0

%

11.7

%

14.3

%

66.0

%

Annualized rental income (3)

 

$

731,308

 

$

53,878

 

$

82,169

 

$

98,921

 

$

496,340

 

Percent

 

100.0

%

7.4

%

11.2

%

13.5

%

67.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Industrial and Other:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

30,513

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

28,303

 

887

 

3,002

 

1,539

 

22,875

 

Percent

 

100.0

%

3.1

%

10.6

%

5.4

%

80.9

%

Annualized rental income (3)

 

$

155,143

 

$

6,684

 

$

20,982

 

$

8,414

 

$

119,063

 

Percent

 

100.0

%

4.3

%

13.5

%

5.4

%

76.8

%

 

 

 

 

 

 

 

 

 

 

 

 

CBD:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

12,488

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

10,991

 

595

 

884

 

853

 

8,659

 

Percent

 

100.0

%

5.4

%

8.0

%

7.8

%

78.8

%

Annualized rental income (3)

 

$

311,348

 

$

17,468

 

$

26,293

 

$

24,322

 

$

243,265

 

Percent

 

100.0

%

5.6

%

8.4

%

7.8

%

78.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Suburban:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

54,788

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

49,205

 

2,843

 

5,843

 

5,257

 

35,262

 

Percent

 

100.0

%

5.8

%

11.9

%

10.7

%

71.6

%

Annualized rental income (3)

 

$

575,103

 

$

43,094

 

$

76,858

 

$

83,013

 

$

372,138

 

Percent

 

100.0

%

7.5

%

13.4

%

14.4

%

64.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

67,276

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

60,196

 

3,438

 

6,727

 

6,110

 

43,921

 

Percent

 

100.0

%

5.7

%

11.2

%

10.2

%

72.9

%

Annualized rental income (3)

 

$

886,451

 

$

60,562

 

$

103,151

 

$

107,335

 

$

615,403

 

Percent

 

100.0

%

6.8

%

11.6

%

12.1

%

69.5

%

 

(1)   Excludes properties classified in discontinued operations.

(2)   Sq. ft. is pursuant to signed leases as of 3/31/2009, and includes (i) space being fitted out for occupancy and (ii) space which is leased, but is not occupied or is being offered for sublease.

(3)   Annualized rental income is rents pursuant to signed leases as of 3/31/2009, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

 

34


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

THREE YEAR LEASE EXPIRATION SCHEDULE BY MAJOR MARKET (1)

(dollars and sq. ft. in thousands)

 

 

 

Total as of
3/31/2009

 

2009

 

2010

 

2011

 

2012 and
Thereafter

 

Metro Philadelphia, PA:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

5,285

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

4,569

 

293

 

326

 

655

 

3,295

 

Percent

 

100.0

%

6.4

%

7.1

%

14.3

%

72.2

%

Annualized rental income (3)

 

$

123,153

 

$

6,507

 

$

8,177

 

$

16,355

 

$

92,114

 

Percent

 

100.0

%

5.3

%

6.6

%

13.3

%

74.8

%

Oahu, HI:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

17,914

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

17,054

 

502

 

304

 

655

 

15,593

 

Percent

 

100.0

%

2.9

%

1.8

%

3.8

%

91.5

%

Annualized rental income (3)

 

$

71,876

 

$

2,337

 

$

1,513

 

$

2,652

 

$

65,374

 

Percent

 

100.0

%

3.3

%

2.1

%

3.7

%

90.9

%

Metro Washington, DC:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,401

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

2,219

 

100

 

202

 

110

 

1,807

 

Percent

 

100.0

%

4.5

%

9.1

%

5.0

%

81.4

%

Annualized rental income (3)

 

$

73,239

 

$

3,834

 

$

6,953

 

$

3,919

 

$

58,533

 

Percent

 

100.0

%

5.2

%

9.5

%

5.4

%

79.9

%

Southern California:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

1,174

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

1,019

 

79

 

84

 

99

 

757

 

Percent

 

100.0

%

7.8

%

8.2

%

9.7

%

74.3

%

Annualized rental income (3)

 

$

38,744

 

$

2,596

 

$

4,507

 

$

4,203

 

$

27,438

 

Percent

 

100.0

%

6.7

%

11.6

%

10.8

%

70.9

%

Metro Boston, MA:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

2,599

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

2,212

 

122

 

83

 

407

 

1,600

 

Percent

 

100.0

%

5.5

%

3.8

%

18.4

%

72.3

%

Annualized rental income (3)

 

$

52,468

 

$

3,677

 

$

2,624

 

$

10,063

 

$

36,104

 

Percent

 

100.0

%

7.0

%

5.0

%

19.2

%

68.8

%

Other markets:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

37,903

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

33,123

 

2,342

 

5,728

 

4,184

 

20,869

 

Percent

 

100.0

%

7.1

%

17.3

%

12.6

%

63.0

%

Annualized rental income (3)

 

$

526,971

 

$

41,611

 

$

79,377

 

$

70,143

 

$

335,840

 

Percent

 

100.0

%

7.9

%

15.1

%

13.3

%

63.7

%

Total:

 

 

 

 

 

 

 

 

 

 

 

Total sq. ft.

 

67,276

 

 

 

 

 

 

 

 

 

Leased sq. ft. (2)

 

60,196

 

3,438

 

6,727

 

6,110

 

43,921

 

Percent

 

100.0

%

5.7

%

11.2

%

10.2

%

72.9

%

Annualized rental income (3)

 

$

886,451

 

$

60,562

 

$

103,151

 

$

107,335

 

$

615,403

 

Percent

 

100.0

%

6.8

%

11.6

%

12.1

%

69.5

%

 

(1)   Excludes properties classified in discontinued operations.

(2)   Sq. ft. is pursuant to signed leases as of 3/31/2009, and includes (i) space being fitted out for occupancy and (ii) space which is leased, but is not occupied or is being offered for sublease.

(3)   Annualized rental income is rents pursuant to signed leases as of 3/31/2009, 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 Central Pennsylvania and Wilmington, DE.  Southern California includes properties located in the Los Angeles, San Diego and Orange County markets, as defined by CoStar.  Oahu, HI includes all properties located on the island of Oahu.

 

35


 

HRPT Properties Trust

Supplemental Operating and Financial Data

March 31, 2009

 

PORTFOLIO LEASE EXPIRATION SCHEDULE (1)

(dollars and sq. ft. in thousands)

 

 

 

Sq. Ft.
Expiring (2)

 

% of Sq. Ft.
Expiring

 

Cumulative %
of Sq. Ft.
Expiring

 

Annualized
Rental Income
Expiring (3)

 

% of Annualized
Rental Income
Expiring

 

Cumulative %
of Annualized
Rental Income
Expiring

 

2009

 

3,438

 

5.7

%

5.7

%

$

60,562

 

6.8

%

6.8

%

2010

 

6,727

 

11.2

%

16.9

%

103,151

 

11.6

%

18.4

%

2011

 

6,110

 

10.2

%

27.1

%

107,335

 

12.1

%

30.5

%

2012

 

5,892

 

9.8

%

36.9

%

115,298

 

13.0

%

43.5

%

2013

 

6,036

 

10.0

%

46.9

%

107,380

 

12.1

%

55.6

%

2014

 

3,365

 

5.6

%

52.5

%

61,818

 

7.0

%

62.6

%

2015

 

3,815

 

6.3

%

58.8

%

70,779

 

8.0

%

70.6

%

2016

 

2,776

 

4.6

%

63.4

%

46,395

 

5.2

%

75.8

%

2017

 

2,200

 

3.7

%

67.1

%

45,891

 

5.2

%

81.0

%

2018

 

1,743

 

2.9

%

70.0

%

31,865

 

3.6

%

84.6

%

2019 and thereafter

 

18,094

 

30.0

%

100.0

%

135,977

 

15.4

%

100.0

%

Total

 

60,196

 

100.0

%

 

 

$

886,451

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average remaining lease term (in years)

 

8.1

 

 

 

 

 

5.8

 

 

 

 

 

 

(1)   Excludes properties classified in discontinued operations.

(2)   Sq. ft. is pursuant to signed leases as of 3/31/2009, and includes (i) space being fitted out for occupancy and (ii) space which is leased, but is not occupied or is being offered for sublease. 

(3)   Annualized rental income is rents pursuant to signed leases as of 3/31/2009, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

 

36

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