Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Government Properties Income Trust — Q4 2015 Earnings Presentation
35 slides from Office Properties Income Trust's earnings presentation, Feb 18, 2016
Slide 1: Fourth Quarter 2015 Supplemental Operating and Financial Data
Government Properties Income Trust Exhibit 99.2 7850 Southwest 6th Court, Plantation, FL Square Feet: 135,819 Tenant: Internal Revenue Service Fourth Quarter 2015 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) • 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 UN
Slide 5: Corporate Information
CORPORATE INFORMATION 2115 East Jefferson Street, Rockville, MD Square Feet: 128,645 Primary Tenant: National Institutes of Health
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
12795 West Alameda Parkway, Lakewood, CO Square Feet: 166,745 Tenant: National Park Services FINANCIAL INFORMATION
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 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Shares Outstanding: Common shares outstanding (at end of period) 71,126 71,126 71,084 70,360 70,349 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 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Selected Balance Sheet Data: Total assets $ 2,174,536 $ 2,227,038 $ 2,237,575 $ 2,414,927 $ 2,427,615 Total
Slide 12: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except share data) As of December 31, 2015 2014 ASSETS Real estate properties: Land $ 253,058 $ 254,008 Buildings and improvements 1,443,074 1,428,472 Total real estate properties, gross 1,696,132 1,682,480 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 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Rental income (1) $ 61,685 $ 64,625 $ 248,549 $ 251,031 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 12/31/2015 12/31/2014 Cash flows from operating activities: Net income (loss) $ (209,961) $ 56,534 Adjustments to reconcile net income (loss) to cash provided by operating ac
Slide 15: Debt Summary
DEBT SUMMARY DEBT SUMMARY As of December 31, 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) 1.64% 1.64% $ 117,000 1/31/2019 $ 117,000 3.
Slide 16: Debt Maturity Schedule
DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE As of December 31, 2015 (dollars in thousands) Unsecured Unsecured Secured Floating Fixed Rate Fixed Rate (4) Year Rate Debt Debt Debt (4) Total (5) (5) (6) 2016 - - 107,933 107,933 2017 - - 1,549 1,549 2018 - - 1,671 1,671 (1) 2019 117,000 350,000 9,440
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 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Leverage Ratios: Total debt / total market capitalization (1) 50.5% 50.2% 46.4% 41.5% 40.1% (
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 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 (2) Tenant improvements $ 2,763 $ 2,213 $ 1,506 $ 1,320 $ 4,652 (3) Leasing costs 2,290 439 1,
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: Weighted Average Purchase Remaining Date Number of Number of Purchase Price (1) / Cap Lease Percen
Slide 20: Portfolio Information
15451 North 28th Avenue, Phoenix, AZ Square Feet: 66,743 Tenant: State of Arizona PORTFOLIO INFORMATION
Slide 21: Portfolio Summary
PORTFOLIO SUMMARY PORTFOLIO SUMMARY(1) As of December 31, 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 12/31/2015 Ended 12/31/2015 (3) Ended 12/31/2015 (3) P
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 12/31/2015 12/31/2014 12/31/2015 12/31/2
Slide 23: Summary Consolidated and Same Property Results - Year
SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS – YEAR (dollars and sq. ft. in thousands) Summary Consolidated Results (1) Summary Same Property Results (2) For the Year Ended For the Year Ended 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Properties (end
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 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Properties (end of period) 71 71 71 71 72 Total sq. ft. (2) 10,701 10,701 10,699 10,699
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 12/31/2015 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 9/30/2015(2) 9/30/2015(2) Expir
Slide 26: Tenant List
TENANT LIST TENANT LIST(1) As of December 31, 2015 % 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 & Immigration Service 718,1
Slide 27: Lease Expiration Schedule
LEASE EXPIRATION SCHEDULE LEASE EXPIRATION SCHEDULE(1) As of December 31, 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 Sq
Slide 28: Exhibits
EXHIBITS Capitol Place, Sacramento, CA Square Feet: 163,840 Primary Tenant: California Dept. of Finance.
Slide 29: Calculation of Property 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 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 12/31/2015 12/31/2014 Calc
Slide 30: 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 For the Year Ended 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Reconciliation of Consolidated NOI to Same Property NOI: (2) (5) (6) R
Slide 31: 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 For the Year Ended 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 12/31/2015 12/31/2014 Net income (loss) $ (2,339) $ 16,911 $ (191,163) $ (33,370)
Slide 32: 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 For the Year Ended 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 12/31/2015 12/31/20
Slide 33: 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 34: Property Detail
PROPERTY DETAIL PROPERTY DETAIL(1) EXHIBIT F (sorted by location) As of December 31, 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) Ca
Slide 35: Property Detail (Continued)
PROPERTY DETAIL (Continued) PROPERTY DETAIL(1) EXHIBIT F (sorted by location) As of December 31, 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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