Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Government Properties Income Trust — Q1 2016 Earnings Presentation
34 slides from Office Properties Income Trust's earnings presentation, Apr 28, 2016
Slide 1: Supplemental Operating and Financial Data, First Quarter 2016
Government Properties Income Trust Exhibit 99.2 1220 Echelon Parkway, Jackson, MS Square Feet: 109,819 Tenant: Federal Bureau of Investigation First Quarter 2016 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 Condensed Consolidated Balance Sheets 12 Condensed Consolidated Statements of Income (Loss) 13 Condensed Consolidated Statem
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) : • OUR ABILITY TO GROW OUR BUSINESS AND INCREASE DISTRIBUTIONS TO OUR SHAREHOLDERS DEPENDS IN LARGE PART UPON OUR ABILITY TO BUY PROPERTIES AND LEASE THEM FOR RENTS, LESS PROPERTY OPERATING EXPENSES, THAT EXCEED OUR CAPITAL COSTS. WE MAY BE
Slide 5: Corporate Information
CORPORATE INFORMATION 625 Indiana Avenue, Washington, DC Government Square Feet: 160,897Properties Income Trust 5 Supplemental Operating Primary Tenant: Department ofand Financial Health Data, March and Human 31, 2016 Services
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. James Feldman Jonathan Petersen James.Feldman@baml.com jpetersen@jefferies.com (646) 855-5808 (212) 284-1705 JMP Securities Morgan Stanley Mitch Germain Sumit Sharma Mgermain
Slide 9: Financial Information
FINANCIAL INFORMATION 20 Massachusetts Avenue, Washington, DC Government Square Feet: 340,119Properties Income Trust 9 Supplemental Operating and Financial Data, March 31, 2016 Tenant: U.S. Citizenship and Immigration Services and Department of Justice
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 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 Shares Outstanding: Common shares outstanding (at end of period) 71,126 71,126 71,126 71,084 70,360 Weighted av
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 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 Market Capitalization: Total debt (book value) (1) $ 1,232,808 $ 1,145,598 $ 1,142,981 $ 1,135,241 $ 1,131,81
Slide 12: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS (1) (dollar amounts in thousands, except share data) March 31, December 31, 2016 2015 ASSETS Real estate properties: Land $ 257,716 $ 253,058 Buildings and improvements 1,509,921 1,443,074 Total real estate properties, gross
Slide 13: Condensed Consolidated Statements of Income (Loss)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (dollars and share amounts in thousands, except per share data) For the Three Months Ended 3/31/2016 3/31/2015 Rental income (1) $ 63,611 $ 62,659 Expenses: Real estate taxes 7,653 7,410 Utility exp
Slide 14: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (dollar amounts in thousands) For the Three Months Ended 3/31/2016 3/31/2015 Cash flows from operating activities: Net income (loss) $ 17,387 $ (33,370) Adjustments to reconcile net income (loss) to cash
Slide 15: Debt Summary
DEBT SUMMARY DEBT SUMMARY As of March 31, 2016 (dollars in thousands) Coupon Interest Principal Maturity Due at Years to Rate Rate Balance (1) Date Maturity Maturity Unsecured Floating Rate Debt: $750,000 unsecured revolving credit facility (2) (5) 1.64% 1.64% $ 311,000 1/31/2019 $ 311,000 2.8 (3) (
Slide 16: Debt Maturity Schedule
DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE As of March 31, 2016 (dollars in thousands) Unsecured Unsecured Secured Floating Fixed Rate Fixed Rate (4) Year Rate Debt Debt Debt (4) Total (5) 2016 - - 1,084 1,084 2017 - - 1,549 1,549 2018 - - 1,671 1,671 (1) 2019 311,000 350,000 9,439 670,439 (2) 20
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 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 Leverage Ratios: Total debt (book value) (1) / total gross assets (2) 48.8% 47.3% 46.3% 46.0%
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 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 (2) Tenant improvements $ 1,989 $ 2,763 $ 2,213 $ 1,506 $ 1,320 (3) Leasing costs 4,312 2,290
Slide 19: Property Acquisition and Disposition Information Since January 1, 2016
PROPERTY ACQUISITION AND DISPOSITION INFORMATION SINCE JANUARY 1, 2016 PROPERTY ACQUISITION AND DISPOSITION INFORMATION SINCE JANUARY 1, 2016 (dollars and sq. ft. in thousands, except per sq. ft. data) Acquisitions: Weighted Average Purchase Remaining (1) Date Number of Number of Purchase Price / Ca
Slide 20: Portfolio Information
7850 Southwest 6th Court, Plantation, FL Square Feet: 135,819 Tenant: Internal Revenue Service Government Properties Income Trust PORTFOLIO INFORMATION Supplemental Operating and Financial Data, March 31, 2016 20
Slide 21: Portfolio Summary
PORTFOLIO SUMMARY PORTFOLIO SUMMARY (1) As of March 31, 2016 % of Total % 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 (3) Leased Ended 3/31/2016 Ended 3/31/2016 (4) Ended 3/31/2016 (4) P
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 3/31/2016 3/31/2015 3/31/2016 3/31/2015 Properties
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 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 Properties (end of period) 72 71 71 71 71 (2) Total sq. ft. 10,985 10,701 10,701 10,699
Slide 24: Leasing Analysis by Tenant Type
LEASING ANALYSIS BY TENANT TYPE LEASING ANALYSIS BY TENANT TYPE (1) Sq. Ft. During the Three Months Ended 3/31/2016 Sq. Ft. Leased % of Sq. Ft. Lease New Net Sq. Ft. Leased % of Sq. Ft. As of Leased as of Leases Renewals Leases Acquisitions/ As of Leased as of Tenant Type 12/31/2015 (2) 12/31/2015 (
Slide 25: Tenant List
TENANT LIST TENANT LIST (1) As of March 31, 2016 % of Total % of Rentable Rentable Annualized % of Total % of Tenant Sq. Ft. (2) Sq. Ft. (2) Rental Income (3) Rentable Rentable Annualized U.S. Government: 1 Internal Revenue Service 1,041,806 9.5% 8.3% Tenant Sq. Ft. (2) Sq. Ft. (2) Rental Income (3)
Slide 26: Lease Expiration Schedule
LEASE EXPIRATION SCHEDULE LEASE EXPIRATION SCHEDULE (1) As of March 31, 2016 (dollars 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. Ft. Expiring
Slide 27: Exhibits
EXHIBITS 4712 Southpark Blvd., Ellenwood, GA Square Feet: 352,064 Tenant:Government National Archives Properties and Records Income Trust Administration 27 Supplemental Operating and Financial Data, March 31, 2016
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 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 (2) Calculation of NOI and Cash Basis NOI : R
Slide 29: Calculation of Same Property NOI and Cash Basis NOI
CALCULATION OF SAME PROPERTY NOI AND CASH BASIS NOI CALCULATION OF SAME PROPERTY NOI AND CASH BASIS NOI (1) EXHIBIT B (dollars in thousands) For the Three Months Ended 3/31/2016 3/31/2015 Reconciliation of Consolidated NOI to Same Property NOI: (2) (3) Rental income $ 63,611 $ 62,659 Operating expen
Slide 30: Calculation of EBITDA and Adjusted EBITDA
CALCULATION OF EBITDA AND ADJUSTED EBITDA CALCULATION OF EBITDA AND ADJUSTED EBITDA (1) EXHIBIT C (dollars in thousands) For the Three Months Ended 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 Net income (loss) $ 17,387 $ (2,339) $ 16,911 $ (191,163) $ (33,370) Add: Interest expense 9,364 9,11
Slide 31: Calculation of FFO and Normalized FFO
CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO (1) EXHIBIT D (amounts in thousands, except per share data) For the Three Months Ended 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015 Net income (loss) $ 17,387 $ (2,339) $
Slide 32: Non-GAAP Financial Measures Definitions
NON-GAAP FINANCIAL MEASURES DEFINITIONS NON-GAAP FINANCIAL MEASURES DEFINITIONS EXHIBIT E Definition of NOI and Cash Basis NOI We calculate NOI and Cash Basis NOI as shown in Exhibit A. The calculations of NOI and Cash Basis NOI exclude certain components of net income (loss) in order to provide res
Slide 33: Property Detail
PROPERTY DETAIL PROPERTY DETAIL (1) EXHIBIT F (sorted by location) As of March 31, 2016 (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) Carr
Slide 34: Property Detail (Continued)
PROPERTY DETAIL (Continued) PROPERTY DETAIL (1) EXHIBIT F (sorted by location) As of March 31, 2016 (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 In
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