Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Government Properties Income Trust — Q4 2014 Earnings Presentation
33 slides from Office Properties Income Trust's earnings presentation, Feb 20, 2015
Slide 1: Government Properties Income Trust Fourth Quarter 2014 Supplemental Operating and Financial Data
Exhibit 99.2 Government Properties Income Trust 8900 Grand Oak Circle, Tampa, FL Square Feet: 67,916 Primary Tenant: U.S. Dept. of Veteran Affairs Fourth Quarter 2014 Supplemental Operating and Financial Data All amounts in this report are unaudited.
Slide 2: Table of Contents
TABLE OF CONTENTS TABLE OF CONTENTS CORPORATE INFORMATION PAGE/EXHIBIT Company Profile 6 Investor Information 7 Research Coverage 8 FINANCIAL INFORMATION Key Financial Data 10 Consolidated Balance Sheets 12 Consolidated Statements of Income 13 Consolidated Statements of Cash Flows 14 Debt Summary 15
Slide 3: Warning Concerning Forward Looking Statements
WARNING CONCERNING FORWARD LOOKING STATEMENTS WARNING CONCERNING FORWARD LOOKING STATEMENTS THIS PRESENTATION OF SUPPLEMENTAL OPERATING AND FINANCIAL DATA CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTH
Slide 4: Warning Concerning Forward Looking Statements (continued)
WARNING CONCERNING FORWARD LOOKING STATEMENTS (continued) FOR EXAMPLE: • CONTINGENCIES IN OUR PENDING AND FUTURE PROPERTY ACQUISITION AND SALE AGREEMENTS MAY CAUSE OUR ACQUISITIONS OR SALES NOT TO OCCUR OR TO BE DELAYED OR THE TERMS OF SUCH TRANSACTIONS TO BE CHANGED, • WE HAVE ONE PROPERTY CLASSIFI
Slide 5: Corporate Information
CORPORATE INFORMATION 180 Spring Street NW, Atlanta, GA Square Feet: 90,688 Primary Tenant: U.S. Dept. of Homeland Security
Slide 6: Company Profile
COMPANY PROFILE COMPANY PROFILE The Company: Corporate Headquarters: Government Properties Income Trust, or GOV, we or us, is a real estate investment trust, or REIT, which Two Newton Place primarily owns properties located throughout the United States that are majority leased to government tenants.
Slide 7: Investor Information
INVESTOR INFORMATION INVESTOR INFORMATION Board of Trustees Barbara D. Gilmore John L. Harrington Jeffrey P. Somers Independent Trustee Independent Trustee Independent Trustee Adam D. Portnoy Barry M. Portnoy Managing Trustee Managing Trustee Senior Management David M. Blackman Mark L. Kleifges Pres
Slide 8: Research Coverage
RESEARCH COVERAGE RESEARCH COVERAGE Equity Research Coverage Bank of America Merrill Lynch Research Jefferies & Company, Inc. JMP Securities James Feldman Omotayo Okusanya Mitch Germain James.Feldman@baml.com Tokusanya@jefferies.com Mgermain@jmpsecurities.com (646) 855-5808 (212) 336-7076 (212) 906-
Slide 9: Financial Information
FINANCIAL INFORMATION 1759 & 1760 Business Center Drive, Reston, VA Square Feet: 406,388 Primary Tenant: U.S. Government
Slide 10: Key Financial Data
KEY FINANCIAL DATA KEY FINANCIAL DATA (dollar and share amounts in thousands, except per share data) As of and for the Three Months Ended 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Shares Outstanding: Common shares outstanding (at end of period) 70,349 70,338 54,751 54,728 54,722 Weighted a
Slide 11: Key Financial Data (Continued)
KEY FINANCIAL DATA (Continued) KEY FINANCIAL DATA (dollar amounts in thousands, except per share data) As of and for the Three Months Ended 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Selected Balance Sheet Data: Total assets $ 2,427,615 $ 2,429,718 $ 1,751,605 $ 1,629,480 $ 1,632,452 Total
Slide 12: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except share data) As of December 31, 2014 2013 ASSETS Real estate properties: Land $ 254,008 $ 243,686 Buildings and improvements 1,428,472 1,324,876 Total real estate properties, gross 1,682,480 1,568,562 Accumul
Slide 13: Consolidated Statements of Income
CONSOLIDATED STATEMENTS OF INCOME CONSOLIDATED STATEMENTS OF INCOME (dollars and share amounts in thousands, except per share data) For the Three Months Ended For the Year Ended 12/31/2014 12/31/2013 12/31/2014 12/31/2013 Rental income (1) $ 64,625 $ 58,271 $ 251,031 $ 226,910 Expenses: Real estate
Slide 14: Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS (dollar amounts in thousands) For the Years Ended 12/31/2014 12/31/2013 Cash flows from operating activities: Net income $ 56,534 $ 54,620 Adjustments to reconcile net income to cash provided by operating activities: Depreci
Slide 15: Debt Summary
DEBT SUMMARY DEBT SUMMARY As of December 31, 2014 (dollars in thousands) Coupon Interest Principal Maturity Due at Years to (1) (1) Rate Rate Balance Date Maturity Maturity Unsecured Floating Rate Debt: $750,000 unsecured revolving credit facility (2) 1.42% 1.42% $ - 1/31/2019 $ - 4.1 (3) $300,000 u
Slide 16: Debt Maturity Schedule
DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE As of December 31, 2014 (dollars in thousands) Unsecured Unsecured Secured Floating Fixed Rate Fixed Rate Year Rate Debt Debt Debt (4) Total (5) 2015 $ - $ - $ 48,906 $ 48,906 2016 - - 107,933 107,933 2017 - - 1,549 1,549 2018 - - 1,671 1,671 (1) 2019 -
Slide 17: Leverage Ratios, Coverage Ratios and Public Debt Covenants
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS As of and for the Three Months Ended 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Leverage Ratios: Total debt / total market capitalization (1) 40.1% 41.0% 34.6% 30.5% 30.5% T
Slide 18: Summary of Capital Expenditures
SUMMARY OF CAPITAL EXPENDITURES SUMMARY OF CAPITAL EXPENDITURES(1) (dollars and sq. ft. in thousands, except per sq. ft. data) For the Three Months Ended 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 (2) Tenant improvements $ 4,652 $ 1,861 $ 1,572 $ 1,953 $ 2,477 Leasing costs (3) 538 437 733
Slide 19: Property Acquisition and Disposition Information Since 1/1/2014
PROPERTY ACQUISITION AND DISPOSITION INFORMATION SINCE 1/1/2014 PROPERTY ACQUISITION AND DISPOSITION INFORMATION SINCE 1/1/2014 (dollars and sq. ft. in thousands, except per sq. ft. data) Acquisitions: Weighted Average Purchase Remaining Date Number of Number of Purchase Price (1) / Cap Lease Percen
Slide 20: Portfolio Information
PORTFOLIO INFORMATION Pender Business Park, Fairfax, VA Square Feet: 170,940 Primary Tenant: The Commonwealth of Virginia
Slide 21: Portfolio Summary
PORTFOLIO SUMMARY PORTFOLIO SUMMARY(1) As of December 31, 2014 % Rental Income % NOI % Cash Basis NOI Number of Number of % Sq. Ft. Three Months Three Months Three Months 3 Properties Buildings Sq. Ft.(2) % Sq. Ft. Leased Ended 12/31/2014 Ended 12/31/2014 (3) Ended 12/31/2014 (3) Properties majority
Slide 22: Summary Consolidated and Same Property Results
SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS (dollars and sq. ft. in thousands) Summary Consolidated Results (1) Summary Same Property Results (2) For the Three Months Ended For the Three Months Ended 12/31/2014 12/31/2013 12/31/2014 12/31/2013 Proper
Slide 23: Occupancy and Leasing Summary
OCCUPANCY AND LEASING SUMMARY OCCUPANCY AND LEASING SUMMARY(1) (dollars and sq. ft. in thousands, except per sq. ft. data) As of and for the Three Months Ended 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Properties (end of period) 72 72 71 69 68 Total sq. ft. (2) 11,037 11,037 10,970 10,400
Slide 24: Occupancy and Leasing Analysis by Tenant Type
OCCUPANCY AND LEASING ANALYSIS BY TENANT TYPE OCCUPANCY AND LEASING ANALYSIS BY TENANT TYPE(1) Sq. Ft. Leased During the Three Months Ended 12/31/2014 New and As of 9/30/2014 Leases Renewal Acquisitions/ As of 12/31/2014 (2) (2) (2) Tenant Type 9/30/2014 % Leased Expired Leases Sales 12/31/2014 % Le
Slide 25: Tenant List
TENANT LIST TENANT LIST(1) As of December 31, 2014 % of Total % of % of Total % of Rentable Rentable Annualized Rentable Rentable Annualized Tenant Sq. Ft. (2) Sq. Ft. (2) Rental Income (3) Tenant Sq. Ft. (2) Sq. Ft. (2) Rental Income (3) U.S. Government: State Government: 1 U.S. Citizenship and Imm
Slide 26: Lease Expiration Schedule
LEASE EXPIRATION SCHEDULE LEASE EXPIRATION SCHEDULE(1) As of December 31, 2014 (dollars and sq. ft. in thousands) Number of Annualized % of Annualized Cumulative % of Tenants Sq. Ft. Cumulative % of Rental Income Rental Income Annualized Rental Year (2) Expiring Expiring (3) % of Sq. Ft. Expiring Sq
Slide 27: Exhibits
EXHIBITS 4560 Viewridge Road, San Diego, CA Square Feet: 147,955 Primary Tenant: U.S. Drug Enforcement Agency
Slide 28: Calculation of Property Net Operating Income (NOI) and Cash Basis NOI
NOI CALCULATION OF PROPERTY NET OPERATING INCOME (NOI) AND CASH BASIS CALCULATION OF PROPERTY NET OPERATING INCOME (NOI) AND CASH BASIS NOI(1) EXHIBIT A (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2014 12/31/2013 12/31/2014 12/31/2013 Calculation of NOI and Cash Basis
Slide 29: Calculation of EBITDA and Adjusted EBITDA
CALCULATION OF EBITDA AND ADJUSTED EBITDA CALCULATION OF EBITDA AND ADJUSTED EBITDA(1) EXHIBIT B (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2014 12/31/2013 12/31/2014 12/31/2013 Net income $ 14,114 $ 12,724 $ 56,534 $ 54,620 Add: interest expense 9,518 4,443 28,048 16
Slide 30: Calculation of Funds from Operations (FFO) and Normalized FFO
CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO(1) EXHIBIT C (amounts in thousands, except per share data) For the Three Months Ended For the Year Ended 12/31/2014 12/31/2013 12/31/2014 12/31/2013 Net income $ 14,114 $ 12,72
Slide 31: Non-GAAP Financial Measures Definitions
NON-GAAP FINANCIAL MEASURES DEFINITIONS NON-GAAP FINANCIAL MEASURES DEFINITIONS EXHIBIT D Definition of NOI and Cash Basis NOI We calculate NOI on a GAAP and cash basis as shown in Exhibit A. We define NOI as income from our rental of real estate less our property operating expenses. NOI excludes am
Slide 32: Property Detail
PROPERTY DETAIL PROPERTY DETAIL(1) EXHIBIT E (sorted by location) As of December 31, 2014 (dollars in thousands) Weighted Average Year Annualized Built or No. of Primary Rentable Rental Undepreciated Depreciated Date Substantially Property Location Buildings Tenant Type Sq. Ft. % Leased Income(2) Ca
Slide 33: Property Detail (Continued)
PROPERTY DETAIL (Continued) PROPERTY DETAIL(1) EXHIBIT E (sorted by location) As of December 31, 2014 (dollars in thousands) Weighted Average Year Annualized Built or No. of Primary Rentable Rental Undepreciated Depreciated Date Substantially Property Location Buildings Tenant Type Sq. Ft. % Leased
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