Office Properties Income Trust · OTC:OPITQ

Office Properties Income Trust — Government Properties Income Trust — Q3 2015 Earnings Presentation

34 slides from Office Properties Income Trust's earnings presentation, Oct 29, 2015

  1. Slide 1: Government Properties Income Trust Third Quarter 2015 Supplemental Operating and Financial Data

    Exhibit 99.2 Government Properties Income Trust Stevens Center , Richland, WA Square Feet: 140,152 Tenant: U.S. Department of Energy Third Quarter 2015 Supplemental Operating and Financial Data All amounts in this report are unaudited.

  2. 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 13 Condensed Consolidated Statements of

  3. 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

  4. Slide 4: Warning Concerning Forward Looking Statements (continued)

    : WARNING CONCERNING FORWARD LOOKING STATEMENTS (continued) • SOME OF OUR TENANTS MAY NOT RENEW EXPIRING LEASES, AND WE MAY BE UNABLE TO OBTAIN NEW TENANTS TO MAINTAIN OR INCREASE THE HISTORICAL OCCUPANCY RATES OF, OR RENTS FROM, OUR PROPERTIES, • SOME GOVERNMENT TENANTS MAY EXERCISE THEIR RIGHTS TO

  5. Slide 5: Corporate Information

    CORPORATE INFORMATION One Memphis Place , Memphis, TN Square Feet: 204,694 Primary Tenant: U.S. Department of Justice

  6. 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.

  7. 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

  8. 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 Vance Edelson Mgermai

  9. Slide 9: Financial Information

    FINANCIAL INFORMATION South Vinnell Way, Boise, ID Square Feet: 180,952 Primary Tenants: U.S. Department of Homeland Security and U.S. Natural Resource Center

  10. 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 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 Shares Outstanding: Common shares outstanding (at end of period) 71,126 71,084 70,360 70,349 70,338 Weighted av

  11. 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 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 Selected Balance Sheet Data: Total assets $ 2,227,038 $ 2,237,575 $ 2,414,927 $ 2,427,615 $ 2,429,718 Total l

  12. Slide 12: Condensed Consolidated Balance Sheets

    CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except share data) September 30, December 31, 2015 2014 ASSETS Real estate properties: Land $ 253,058 $ 254,008 Buildings and improvements 1,433,993 1,428,472 Total real estate properties, gross

  13. Slide 13: Condensed Consolidated Statements of Income

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars and share amounts in thousands, except per share data) For the Three Months Ended For the Nine Months Ended 9/30/2015 9/30/2014 9/30/2015 9/30/2014 Rental income (1) $ 62,092 $ 64,158 $ 186,864 $ 186,406

  14. 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 Nine Months Ended 9/30/2015 9/30/2014 Cash flows from operating activities: Net income (loss) $ (207,622) $ 42,420 Adjustments to reconcile net income (loss) to cash

  15. Slide 15: Debt Summary

    DEBT SUMMARY DEBT SUMMARY As of September 30, 2015 (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) (5) 1.40% 1.40% $ 114,000 1/31/2019 $ 114,000 3

  16. Slide 16: Debt Maturity Schedule

    DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE As of September 30, 2015 (dollars in thousands) Unsecured Unsecured Secured Floating Fixed Rate Fixed Rate (4) Year Rate Debt Debt Debt (4) Total (5) 2015 $ - $ - $ 429 $ 429 2016 - - 107,933 107,933 2017 - - 1,549 1,549 2018 - - 1,671 1,671 (1) 2019 114

  17. 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 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 Leverage Ratios: Total debt / total market capitalization (1) 50.2% 46.4% 41.5% 40.1% 41.0% (1

  18. 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 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 (2) Tenant improvements $ 2,213 $ 1,506 $ 1,320 $ 4,652 $ 1,861 Leasing costs (3) 439 1,786 651

  19. Slide 19: Property Acquisition and Disposition Information Since 1/1/2015

    PROPERTY ACQUISITION AND DISPOSITION INFORMATION SINCE 1/1/2015 PROPERTY ACQUISITION AND DISPOSITION INFORMATION SINCE 1/1/2015 (dollars and sq. ft. in thousands, except per sq. ft. data) Acquisitions: We have made no property acquisitions since January 1, 2015. Dispositions: Date Number of Number o

  20. Slide 20: Portfolio Information

    PORTFOLIO INFORMATION Turning Basin Business Park, Stockton, CA Square Feet: 22,012 Tenant: U.S. Immigration and Customs Enforcement

  21. Slide 21: Portfolio Summary

    PORTFOLIO SUMMARY PORTFOLIO SUMMARY(1) As of September 30, 2015 % 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 Leased Ended 9/30/2015 Ended 9/30/2015 (3) Ended 9/30/2015 (3) Pro

  22. Slide 22: Summary Consolidated and Same Property Results - Quarter

    SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS - QUARTER (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 9/30/2015 9/30/2014 9/30/2015 9/30/2014

  23. Slide 23: Summary Consolidated and Same Property Results - Year to Date

    SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS – YEAR TO DATE (dollars and sq. ft. in thousands) Summary Consolidated Results (1) Summary Same Property Results (2) For the Nine Months Ended For the Nine Months Ended 9/30/2015 9/30/2014 9/30/2015 9/30/20

  24. Slide 24: 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 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 Properties (end of period) 71 71 71 72 72 Total sq. ft. (2) 10,701 10,699 10,699 11,037 1

  25. Slide 25: Leasing Analysis by Tenant Type

    LEASING ANALYSIS BY TENANT TYPE LEASING ANALYSIS BY TENANT TYPE(1) Sq. Ft. During the Three Months Ended 9/30/2015 Sq. Ft. Leased % of Sq. Ft. Lease New Sq. Ft. Leased % of Sq. Ft. As of Leased as of Leases Renewals Leases Acquisitions/ As of Leased as of Tenant Type 6/30/2015(2) 6/30/2015(2) Expire

  26. Slide 26: Tenant List

    TENANT LIST TENANT LIST(1) As of September 30, 2015 % 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 Citizenship and Immigra

  27. Slide 27: Lease Expiration Schedule

    LEASE EXPIRATION SCHEDULE LEASE EXPIRATION SCHEDULE(1) As of September 30, 2015 (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 S

  28. Slide 28: Exhibits

    EXHIBITS 2020 S. Arlington Heights , Arlington Heights, IL Square Feet: 57,770 Tenant: U.S. Occupational Safety & Health Administration

  29. Slide 29: 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 Nine Months Ended 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 9/30/2015 9/30/2014

  30. Slide 30: 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 Nine Months Ended 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 9/30/2015 9/30/2014 Net income (loss) $ 16,911 $ (191,163) $ (33,370) $ 14,1

  31. Slide 31: 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 Nine Months Ended 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 9/30/2015 9/3

  32. Slide 32: Non-GAAP Financial Measures Definitions

    NON-GAAP FINANCIAL MEASURES DEFINITIONS NON-GAAP FINANCIAL MEASURES DEFINITIONS EXHIBIT D Definition of NOI and Cash Basis NOI The calculations of NOI and Cash Basis NOI exclude certain components of net income (loss) in order to provide results that are more closely related to our property level re

  33. Slide 33: Property Detail

    PROPERTY DETAIL PROPERTY DETAIL(1) EXHIBIT E (sorted by location) As of September 30, 2015 (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) C

  34. Slide 34: Property Detail (Continued)

    PROPERTY DETAIL (Continued) PROPERTY DETAIL(1) EXHIBIT E (sorted by location) As of September 30, 2015 (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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