Office Properties Income Trust · OTC:OPITQ

Office Properties Income Trust — Government Properties Income Trust — Q4 2011 Earnings Presentation

28 slides from Office Properties Income Trust's earnings presentation, Feb 22, 2012

  1. Slide 1: Government Properties Income Trust Fourth Quarter 2011 Supplemental Operating and Financial Data

    Exhibit 99.2 Government Properties Income Trust Fourth Quarter 2011 Supplemental Operating and Financial Data One Georgia Center, Atlanta, GA. Square Feet: 375,805. Primary Tenant: GA Department of Transportation. 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 Consolidated Balance Sheets 11 Consolidated Statements of Income 12 Consolidated Statements of Cash Flows 13 Debt Summary 14

  3. Slide 3: Warning Concerning Forward Looking Statements

    WARNING CONCERNING FORWARD LOOKING STATEMENTS WARNING CONCERNING FORWARD LOOKING STATEMENTS THIS SUPPLEMENTAL PRESENTATION OF OPERATING AND FINANCIAL DATA CONTAINS STATEMENTS WHICH CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OT

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

    WARNING CONCERNING FORWARD LOOKING STATEMENTS (continued) • THE IMPACT OF CHANGES IN THE REAL ESTATE NEEDS AND FINANCIAL CONDITIONS OF THE U.S. GOVERNMENT AND STATE GOVERNMENTS, • COMPLIANCE WITH, AND CHANGES TO, FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS, ACCOUNTING RULES, TAX LAWS AND SIMILAR M

  5. Slide 5: Corporate Information

    CORPORATE INFORMATION 915 L. Street, Sacramento, CA. Square Feet: 163,840. Primary Tenant: California Department of Finance Government Properties Income Trust Supplemental Operating and Financial Data, December 31, 2011

  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 owns buildings that are majority leased to government tenants located throughout the United States. The majority of our propert

  7. Slide 7: Investor Information

    INVESTOR INFORMATION INVESTOR INFORMATION Board of Trustees Barry M. Portnoy Adam D. Portnoy Managing Trustee Managing Trustee Barbara D. Gilmore John L. Harrington Independent Trustee Independent Trustee Jeffrey P. Somers Independent Trustee Senior Management David M. Blackman Mark L. Kleifges Pres

  8. Slide 8: Research Coverage

    RESEARCH COVERAGE RESEARCH COVERAGE Equity Research Coverage Banc of America Merrill Lynch Research Janney Capital Markets James Feldman Daniel Donlan (646) 855-5808 (212) 665-6476 Jefferies & Company, Inc. JMP Securities Omotayo Okusanya Mitch Germain (212) 336-7076 (212) 906-3546 Morgan Keegan Mor

  9. Slide 9: Financial Information

    17295 W. Alameda Parkway, Lakewood, CO. Square Feet: 166,745. Primary Tenant: National Park Service. FINANCIAL INFORMATION Government Properties Income Trust Supplemental Operating and Financial Data, December 31, 2011

  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 12/31/2011 9/30/2011 6/30/2011 3/31/2011 12/31/2010 Shares Outstanding: Common shares outstanding (at end of period) (1) 47,052 47,052 40,511 40,501 40,501 Weight

  11. Slide 11: Consolidated Balance Sheets

    CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except share data) As of As of 12/31/2011 12/31/2010 ASSETS Real estate properties: Land $ 224,674 $ 143,774 Buildings and improvements 1,129,994 833,719 1,354,668 977,493 Accumulated depreciation (156,618) (131,04

  12. Slide 12: Consolidated Statements of Income

    CONSOLIDATED STATEMENTS OF INCOME CONSOLIDATED STATEMENTS OF INCOME (dollar amounts in thousands, except per share data) For the Three Months Ended For the Year Ended 12/31/2011 12/31/2010 12/31/2011 12/31/2010 Rental income (1) $ 51,726 $ 36,908 $ 178,950 $ 117,219 Expenses: Real estate taxes 5,398

  13. Slide 13: Consolidated Statements of Cash Flows

    CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS (dollar amounts in thousands) For the Year Ended 12/31/2011 12/31/2010 Cash flows from operating activities: Net income $ 45,997 $ 27,795 Adjustments to reconcile net income to cash provided by operating activities: Deprecia

  14. Slide 14: Debt Summary

    DEBT SUMMARY DEBT SUMMARY (dollars in thousands) Coupon Interest Principal Maturity Due at Years to Rate Rate (1) Balance (1) Date Maturity Maturity Unsecured Floating Rate Debt: (2) $550,000 unsecured revolving credit facility (3) 1.80% 1.80% $ 345,500 10/19/2015 $ 345,500 3.8 Secured Fixed Rate De

  15. Slide 15: Debt Maturity Schedule

    DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE (dollars in thousands) Unsecured Secured Floating Fixed Rate (1) (2) Year Rate Debt Debt Total (3) 2012 $ - $ 1,793 $ 1,793 2013 - 1,933 1,933 2014 - 2,072 2,072 2015 345,500 48,691 394,191 2016 - 24,708 24,708 2017 - 1,308 1,308 2018 - 1,415 1,415 2019

  16. Slide 16: Leverage Ratios and Coverage Ratios

    LEVERAGE RATIOS AND COVERAGE RATIOS LEVERAGE RATIOS AND COVERAGE RATIOS As of and for the Three Months Ended 12/31/2011 9/30/2011 6/30/2011 3/31/2011 12/31/2010 Leverage Ratios: Total debt / total market capitalization (1) 29.4% 24.5% 26.0% 15.6% 13.2% (1) Total debt / total book capitalization 33.1

  17. Slide 17: Acquisition Information Since 1/1/2011

    ACQUISITION INFORMATION SINCE 1/1/2011 ACQUISITION INFORMATION SINCE 1/1/2011 (dollars and sq. ft. in thousands, except per sq. ft. amounts) Weighted Average Purchase Remaining Date Number of Purchase Price (1) / Cap Lease Percent (1) Acquired City and State Properties Sq. Ft. Price Sq. Ft. Rate (2)

  18. Slide 18: Portfolio Information

    Southpointe I, Plantation, FL. Square Feet: 135,819. Primary Tenant: Internal Revenue Service. PORTFOLIO INFORMATION Government Properties Income Trust 18 Supplemental Operating and Financial Data, December 31, 2011

  19. Slide 19: Portfolio Summary

    PORTFOLIO SUMMARY PORTFOLIO SUMMARY % NOI Number of % Rental Three Months 1 3 Properties Sq. Ft. % Sq. Ft. Income(1) Ended 12/31/2011 (2) Properties majority leased to the U.S. Government 55 6,806,280 76.0% 72.9% 75.4% Properties majority leased to state governments 15 1,959,506 21.9% 22.3% 18.6% Pr

  20. Slide 20: Summary Actual and Same Property Results

    SUMMARY ACTUAL AND SAME PROPERTY RESULTS SUMMARY ACTUAL AND SAME PROPERTY RESULTS (dollars and sq. ft. in thousands) Summary Actual Results Summary Same Property Results For the Three Months Ended For the Three Months Ended (1) 12/31/2011 12/31/2010 12/31/2011 12/31/2010 Properties (end of period) 7

  21. Slide 21: Tenant Improvements, Leasing Costs and Capital Improvements

    TENANT IMPROVEMENTS, LEASING COSTS AND CAPITAL IMPROVEMENTS TENANT IMPROVEMENTS, LEASING COSTS AND CAPITAL IMPROVEMENTS (dollars and sq. ft. in thousands, except per sq. ft. data) For the Three Months Ended 12/31/2011 9/30/2011 6/30/2011 3/31/2011 12/31/2010 Tenant improvements (TI) $ 267 $ 349 $ 41

  22. Slide 22: Occupancy and Leasing Summary

    OCCUPANCY AND LEASING SUMMARY OCCUPANCY AND LEASING SUMMARY (dollars and sq. ft. in thousands, except per sq. ft. data) As of and for the Three Months Ended 12/31/2011 9/30/2011 6/30/2011 3/31/2011 12/31/2010 Properties 71 67 64 58 55 Total sq. ft. (1) 8,953 8,286 7,553 7,079 6,804 Percentage leased

  23. Slide 23: Tenant List

    TENANT LIST TENANT LIST Tenant Sq. Ft. (1) % of Total Sq. Ft. (1) % of Rental Income (2) U.S. Government: 1 U.S. Customs & Immigration Service 630,609 7.0% 9.7% 2 Internal Revenue Service 1,032,330 11.5% 9.5% 3 Department of Justice 317,535 3.5% 5.5% 4 Centers for Disease Control 481,266 5.4% 4.8% 5

  24. Slide 24: Lease Expiration Schedule

    LEASE EXPIRATION SCHEDULE LEASE EXPIRATION SCHEDULE (dollars and sq. ft. in thousands) Cumulative % of Sq. Ft. Cumulative % of Rental Income % of Rental Income Rental Income Expiring (1) % of Sq. Ft. Expiring Sq. Ft. Expiring Expiring (2) Expiring Expiring 2012 1,483 17.4% 17.4% $ 41,358 19.9% 19.9%

  25. Slide 25: Exhibits

    EXHIBITS 305 East 46th Street, New York City, NY. Government Square Feet: 187,060.Properties Income Trust 25 915 L. Street, Sacramento, CA. Primary Tenant: United Operating Supplemental Nations. and Financial Data, December 31, 2011 Square Feet: 163,425.

  26. Slide 26: Calculation of Property Net Operating Income (NOI)

    CALCULATION OF PROPERTY NET OPERATING INCOME (NOI) CALCULATION OF PROPERTY NET OPERATING INCOME (NOI) (dollar amounts in thousands) For the Three Months Ended For the Year Ended 12/31/2011 12/31/2010 12/31/2011 12/31/2010 Calculation of NOI: Rental income (1) $ 51,726 $ 36,908 $ 178,950 $ 117,219 EX

  27. Slide 27: Calculation of EBITDA

    CALCULATION OF EBITDA CALCULATION OF EBITDA EXHIBIT B (dollar amounts in thousands) For the Three Months Ended For the Year Ended 12/31/2011 12/31/2010 12/31/2011 12/31/2010 Net income $ 13,248 $ 6,540 $ 45,997 $ 27,795 Plus: interest expense 3,282 2,169 12,057 7,351 Plus: income tax expense 109 90

  28. Slide 28: 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 (dollar amounts in thousands, except per share data) EXHIBIT C For the Three Months Ended For the Year Ended 12/31/2011 12/31/2010 12/31/2011 12/31/2010 Net income $ 13,248 $ 6

Government Properties Income Trust — Q4 2011 Earnings Presentation on 6ix