(Source: Business Wire)
Government Properties Income Trust (NYSE: GOV) today announced financial results for the quarter and six months ended June 30, 2009. GOV completed its initial public offering on June 8, 2009. Accordingly, GOV's historical results of operations are not comparable to results which may be expected in future periods.
Results for the quarter ended June 30, 2009:
Net income available for common shareholders was $5.9 million for the quarter ended June 30, 2009, compared to $8.3 million for the same quarter last year. Net income per share (EPS) for the quarter ended June 30, 2009 was $0.47. For the quarter ended June 30, 2008, GOV did not have any outstanding shares.
Funds from operations (FFO) for the quarter ended June 30, 2009 was $9.7 million, or $0.78 per share compared to FFO for the quarter ended June 30, 2008 of $11.9 million.
The weighted average number of common shares outstanding was 12,384,066, for the quarter ended June 30, 2009. GOV sold 11,500,000 common shares in an initial public offering on June 8, 2009. If the initial public offering had occurred on April 1, 2009, GOV's weighted average number of common shares outstanding would have been 21,450,000.
Results for the six months ended June 30, 2009:
Net income was $14.4 million for the six months ended June 30, 2009, compared to $16.4 million for the same period last year. Net income per share (EPS) for the six months ended June 30, 2009 was $1.67. GOV was formed as a wholly owned subsidiary of and issued 9,950,000 common shares to HRPT Properties Trust on February 17, 2009.
Funds from operations (FFO) for the six months ended June 30, 2009 was $21.7 million, or $2.53 per share, compared to FFO for the six months ended June 30, 2008 of $23.4 million.
The weighted average number of common shares outstanding was 8,590,055 for the six months ended June 30, 2009. If GOV's formation transaction and initial public offering had occurred on January 1, 2009, GOV's weighted average number of common shares outstanding would have been 21,450,000.
Initial Public Offering:
On June 2, 2009, GOV priced its initial public offering ("IPO") of 10,000,000 common shares at $20.00 per share. The IPO closed on June 8, 2009 and GOV received $187,500,000 in net proceeds. On June 30, 2009, the underwriters exercised their over allotment option, purchasing an additional 1,500,000 common shares at $20.00 per share and GOV received $28,050,000 in net proceeds. GOV used the full net proceeds from the IPO and the exercise of the over allotment option in the amount of $215,550,000 to repay outstanding borrowings under its $250,000,000 secured credit facility that was established and fully drawn on April 25, 2009.
Conference Call:
On Monday, August 10, 2009, at 10:00 a.m. Eastern Time, Adam Portnoy, President and Managing Trustee, and David Blackman, Chief Financial Officer, will host a conference call to discuss the second quarter 2009 results.
The conference call telephone number is (888) 820-9414. Participants calling from outside the United States and Canada should dial (913) 312-6684. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 8:00 p.m. Eastern Time on Monday, August 17th. To hear the replay, dial (719) 457-0820. The replay pass code is 1047892.
A live audio webcast of the conference call will also be available in a listen only mode on GOV's website, which is located at www.govreit.com. Participants wanting to access the webcast should visit the company's web site about five minutes before the call. The archived webcast will be available for replay on GOV's web site for about one week after the call.
Supplemental Data:
A copy of GOV's Second Quarter 2009 Supplemental Operating and Financial Data is available for download at GOV's web site, www.govreit.com.
Government Properties Income Trust is a real estate investment trust, or REIT, which owns properties located throughout the United States leased primarily to the U.S. Government and several state government tenants. As of June 30, 2009, GOV owned 29 properties with 3.3 million square feet. GOV 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.
Government Properties Income Trust Condensed Consolidated Statements of Income and Funds from Operations (amounts in thousands, except per share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 Rental income $ 19,405 $ 18,862 $ 36,648 $ 37,519 Expenses: Real estate taxes 2,113 1,982 4,219 3,940 Utility expenses 1,523 1,398 3,044 2,909 Other operating expenses 2,912 2,842 5,711 5,672 Depreciation and amortization 3,797 3,520 7,361 7,018 General and administrative 873 746 1,613 1,492 Total expenses 11,218 10,488 21,948 21,031 Operating income 8,187 8,374 16,700 16,488 Interest income 42 12 44 25 Interest expense (including amortization of deferred financing fees of $427, $--, $427 and $--, respectively) (2,360 ) (46 ) (2,360 ) (102 ) Net income $ 5,869 $ 8,340 $ 14,384 $ 16,411 Calculation of Funds from Operations, or FFO ((1)): Net income $ 5,869 $ 8,340 $ 14,384 $ 16,411 Plus: depreciation and amortization 3,797 3,520 7,361 7,018 FFO $ 9,666 $ 11,860 $ 21,745 $ 23,429 Weighted average common shares outstanding 12,384 -- 8,590 -- Per common share: Net income $ 0.47 -- $ 1.67 -- FFO $ 0.78 -- $ 2.53 -- -------------------------------------------------------------------------------
((1)) We compute FFO as shown in the calculations above. Our calculation of FFO is consistent with the National Association of Real Estate Investment Trusts, or NAREIT, definition of FFO. 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, FFO can facilitate a comparison of operating performance between historical periods and among REITs. FFO does not represent cash generated by operating activities in accordance with generally accepted accounting principles, or GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity. FFO is one important factor considered by our Board of Trustees in determining the amount of distributions to shareholders. Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our revolving credit facility and the availability of debt and equity capital to us and our expectations of future capital requirements and operating performance. -------------------------------------------------------------------------------
Government Properties Income Trust Condensed Consolidated Balance Sheets (amounts in thousands, except share data) (unaudited) June 30, December 31, 2009 2008 ASSETS Real estate properties: Land $ 65,719 $ 65,719 Buildings and improvements 425,183 424,756 490,902 490,475 Accumulated depreciation (106,070 ) (100,034 ) 384,832 390,441 Acquired real estate leases, net 9,252 10,071 Cash and cash equivalents 451 97 Restricted cash - 1,334 Deferred leasing costs, net 1,538 1,757 Deferred financing costs, net 6,458 - Rents receivable 6,872 14,593 Due from affiliates 943 - Other assets, net 1,677 1,481 Total assets $ 412,023 $ 419,774 LIABILITIES AND SHAREHOLDERS EQUITY Mortgage notes payable $ - $ 134 Secured credit facility 43,875 - Accounts payable and accrued expenses 5,795 3,036 Acquired real estate lease obligations, net 2,750 3,151 52,420 6,321 Shareholders' equity: Common shares of beneficial interest, $.01 par value: 25,000,000 shares authorized; 21,450,000 shares issued and outstanding 215 - Additional paid in capital 357,444 - Cumulative net income 1,944 - Ownership interest - 413,453 Total shareholders' equity 359,603 413,453 Total liabilities and shareholders equity $ 412,023 $ 419,774 -------------------------------------------------------------------------------
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.
A service of YellowBrix, Inc.
