Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Government Properties Income Trust — Q3 2014 Earnings Presentation
33 slides from Office Properties Income Trust's earnings presentation, Oct 30, 2014
Slide 1: Third Quarter 2014 Supplemental Operating and Financial Data
Exhibit 99.2 Government Properties Income Trust 9960 Maryland Drive, Richmond, VA. Square Feet: 173,932. Primary Tenant: The Commonwealth of Virginia. Third 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 Condensed Consolidated Balance Sheets 12 Condensed Consolidated Statements of Income 13 Condensed Consolidated Statements of
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) • LIMITATIONS IMPOSED ON OUR BUSINESS AND OUR ABILITY TO SATISFY COMPLEX RULES IN ORDER FOR US TO QUALIFY AS A REIT FOR U.S. FE DERAL INCOME TAX PURPOSES, AND • ACTS OF TERRORISM, OUTBREAKS OF SO CALLED PANDEMICS OR OTHER MANMADE OR NATURAL D
Slide 5: Corporate Information
CORPORATE INFORMATION 1759 & 1760 Business Center Drive, Reston, VA. Square Feet: 406,388. Primary Tenant: U.S. Government.
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 One Georgia Center, Atlanta, GA. Square Feet: 375,952. Primary Tenant: State of GA: Dept. of Transportation.
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 9/30/2014 6/30/2014 3/31/2014 12/31/2013 9/30/2013 Shares Outstanding: Common shares outstanding (at end of period) (1) 70,338 54,751 54,728 54,722 54,722 Weighte
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 9/30/2014 6/30/2014 3/31/2014 12/31/2013 9/30/2013 Selected Balance Sheet Data: Total assets $ 2,429,718 $ 1,751,605 $ 1,629,480 $ 1,632,452 $ 1,553,079 Total l
Slide 12: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except per share data) As of As of 9/30/2014 12/31/2013 ASSETS Real estate properties: Land $ 254,008 $ 243,686 Buildings and improvements 1,420,971 1,324,876 1,674,979 1,568,562 Accumulated dep
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 9/30/2014 9/30/2013 9/30/2014 9/30/2013 Rental income (1) $ 64,158 $ 56,401 $ 186,406 $ 168,639
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 9/30/2014 9/30/2013 Cash flows from operating activities: Net income $ 42,420 $ 41,896 Adjustments to reconcile net income to cash provided by opera
Slide 15: Debt Summary
DEBT SUMMARY DEBT SUMMARY As of September 30, 2014(1) (dollars in thousands) Coupon Interest Principal Maturity Due at Years to Rate Rate (2) Balance (2) Date Maturity Maturity Unsecured Floating Rate Debt: $550,000 unsecured revolving credit facility (3) 1.65% 1.65% $ 184,500 10/19/2015 $ 184,500 1
Slide 16: Debt Maturity Schedule
DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE As of September 30, 2014(1) (dollars in thousands) Unsecured Unsecured Secured Floating Fixed Rate Fixed Rate Year Rate Debt Debt Debt (4) Total (5) 2014 $ - $ - $ 586 $ 586 (2) 2015 184,500 - 48,906 233,406 2016 - - 107,933 107,933 (3) 2017 350,000 - 1,
Slide 17: Leverage Ratios and Coverage Ratios
LEVERAGE RATIOS AND COVERAGE RATIOS LEVERAGE RATIOS AND COVERAGE RATIOS AND PUBLIC DEBT COVENANTS As of and for the Three Months Ended 9/30/2014 6/30/2014 3/31/2014 12/31/2013 9/30/2013 Leverage Ratios: Total debt / total market capitalization (1) 41.0% 34.6% 30.5% 30.5% 28.0% (1) Total debt / total
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 9/30/2014 6/30/2014 3/31/2014 12/31/2013 9/30/2013 Tenant improvements (2) $ 1,861 $ 1,572 $ 1,953 $ 2,477 $ 3,783 (3) Leasing costs 437 733 269 2
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
20 Massachusetts Avenue, Washington, D.C. Square Feet: 340,119. Primary Tenant: U.S. Citizenship and Immigration Service. PORTFOLIO INFORMATION Government Properties Income Trust Supplemental Operating and Financial Data, September 30, 2014
Slide 21: Portfolio Summary
PORTFOLIO SUMMARY PORTFOLIO SUMMARY(1) As of September 30, 2014 % Rental Income % NOI % Cash Basis NOI Number of Number of Three Months Three Months Three Months 1 3 Properties Buildings Sq. Ft.(2) % Sq. Ft. Ended 9/30/2014 Ended 9/30/2014 (3) Ended 9/30/2014 (3) Properties majority leased to the U.
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 9/30/2014 9/30/2013 9/30/2014 9/30/2013 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 9/30/2014 6/30/2014 3/31/2014 12/31/2013 9/30/2013 Properties 72 71 69 68 65 Total sq. ft. (2) 11,037 10,970 10,400 10,317 10,001 Percentage
Slide 24: Leasing Analysis by Tenant Type
LEASING ANALYSIS BY TENANT TYPE OCCUPANCY AND LEASING ANALYSIS BY TENANT TYPE(1) Total Sq. Ft. Sq. Ft. Leases Executed During As of the Three Months Ended 9/30/2014 Tenant Type 9/30/2014 New Renewals Total U.S. Government 7,327,652 17,248 123,027 140,275 State Government 2,163,389 - - - United Natio
Slide 25: Tenant List
TENANT LIST TENANT LIST(1) As of September 30, 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. Customs & Immigrat
Slide 26: Lease Expiration Schedule
LEASE EXPIRATION SCHEDULE LEASE EXPIRATION SCHEDULE(1) As of September 30, 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 (3) Expiring (4) % of Sq. Ft. Expiri
Slide 27: Exhibits
EXHIBITS 4712 Southpark Blvd., Ellenwood, GA. Government Properties Income Trust Square Feet: 352,064. Supplemental Operating and Financial Data, September 30, 2014 Tenant: National Archives and Records Administration. .
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 Nine Months Ended 9/30/2014 9/30/2013 9/30/2014 9/30/2013 Calculation of NOI and Cash Bas
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 Nine Months Ended 9/30/2014 9/30/2013 9/30/2014 9/30/2013 Net income $ 12,622 $ 1,966 $ 42,420 $ 41,896 Add: interest expense 8,845 4,176 18,530
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 Nine Months Ended 9/30/2014 9/30/2013 9/30/2014 9/30/2013 Net income $ 12,622 $ 1,
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 September 30, 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) C
Slide 33: Property Detail (Continued)
PROPERTY DETAIL (Continued) PROPERTY DETAIL(1) EXHIBIT E (sorted by location) As of September 30, 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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