Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Government Properties Income Trust — Q3 2018 Earnings Presentation
37 slides from Office Properties Income Trust's earnings presentation, Nov 1, 2018
Slide 1: Supplemental Operating and Financial Data
Exhibit 99.2 Exhibit Government Properties Income Trust Ex ExhibitExhibit99.2 99.299.2 Fourth Quarter 2016 Supplemental Operating and Financial Data All amounts in this report are unaudited.
Slide 2: Table of Contents
TABLE OF CONTENTS PAGE CORPORATE INFORMATION Company Profile 6 Investor Information 7 Research Coverage 8 FINANCIALS Key Financial Data 10 Condensed Consolidated Balance Sheets 11 Condensed Consolidated Statements of Income (Loss) 12 TABLE OF CONTENTS TABLE Notes to Condensed Consolidated Statements
Slide 3: 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 OTHER SECURITIES LAWS. ALSO, WHENEVER WE USE WORD
Slide 4: Forward Looking Statements (continued)
• AS PART OF OUR LONG TERM FINANCING PLANS TO REDUCE OUR LEVERAGE, WE EXPECT TO DISPOSE OF CERTAIN OF OUR PROPERTIES. CURRENTLY, WE ARE MARKETING OR PLAN TO MARKET FOR SALE THREE PROPERTIES. WE CANNOT BE SURE WE WILL SELL ANY OF THESE PROPERTIES OR WHAT THE TERMS OF ANY SALE MAY BE. WE MAY SELL SOME
Slide 5: Corporate Information
One Memphis Place, Memphis, TN Square Feet: 204,694 Primary Agency Occupant: U.S. Courts Government Properties Income Trust 5 Supplemental Operating and Financial Data, September 30,CORPORATE 2018 INFORMATION
Slide 6: 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, that primarily Two Newton Place owns properties located throughout the United States that are majority leased to government tenants and 255 Washingto
Slide 7: Investor Information
INVESTOR INFORMATION Board of Trustees Barbara D. Gilmore John L. Harrington Elena Poptodorova Independent Trustee Independent Trustee Independent Trustee Jeffrey P. Somers Mark L. Kleifges Adam D. Portnoy Independent Trustee Managing Trustee Managing Trustee INVESTOR INFORMATION INVESTOR Senior Man
Slide 8: Research Coverage
RESEARCH COVERAGE Equity Research Coverage Bank of America Merrill Lynch Research D.A. Davidson & Co. James Feldman James Lykins James.Feldman@baml.com jlykins@dadco.com (646) 855-5808 503-603-3041 FBR & Co. Jeffries & Company, Inc. RESEARCH COVERAGE Bryan Maher Jonathan Petersen bmaher@fbr.com jpet
Slide 9: Financials
FINANCIALS 9960625 Indiana Maryland Avenue, Drive, Washington, Richmond, VA DC Square Feet:Government 173,932160,897 Properties Income Trust 9 AgencyPrimary Occupant:AgencySupplement Occupant: Theal Operating Commonwealth U.S. and Courts Financial of Virginia Data, September 30, 2018 9
Slide 10: Key Financial Data
KEY FINANCIAL DATA (dollar and share amounts in thousands, except per share data) As of and for the Three Months Ended 9/30/2018 6/30/2018 3/31/2018 12/31/2017 9/30/2017 Selected Balance Sheet Data: Total gross assets (1) $ 3,847,915 $ 3,866,055 $ 4,008,953 $ 4,045,413 $ 3,868,036 Total assets $ 3,4
Slide 11: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share data) September 30, December 31, 2018 2017 ASSETS Real estate properties: Land $ 448,714 $ 627,108 Buildings and improvements 2,050,365 2,348,613 Total real estate properties, gross 2,499,079 2,975,721 Accumulated depreciation
Slide 12: Condensed Consolidated Statements of Income (Loss)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (dollars and share amounts in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Rental income $ 106,102 $ 70,179 $ 322,904 $ 209,362 Expenses: Real estate taxes 12,072 8,862 37,402
Slide 13: Notes to Condensed Consolidated Statements of Income (Loss)
NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (dollars and share amounts in thousands, except per share data) (1) Loss on impairment of real estate for the nine months ended September 30, 2018 represents an adjustment of $6,116 in the three months ended March 31, 2018 to reduce the car
Slide 14: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (dollar amounts in thousands) For the Nine Months Ended September 30, 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 35,811 $ 30,081 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 51,121 35,460
Slide 15: Debt Summary
DEBT SUMMARY (1) As of September 30, 2018 (dollars in thousands) Coupon Interest Principal Maturity Due at Years to Rate (2) Rate (3) Balance (4) Date Maturity Maturity Unsecured Floating Rate Debt: $750,000 unsecured revolving credit facility (5) (8) 3.417% 3.417% $ 467,000 1/31/2019 $ 467,000 0.3
Slide 16: Debt Maturity Schedule
DEBT MATURITY SCHEDULE (1) As of September 30, 2018 (dollars in thousands) Unsecured Unsecured Secured Floating Fixed Rate Fixed Rate Year Rate Debt (2) Debt (2) Debt (2) Total (3) 2018 $ — $ — $ 940 $ 940 2019 467,000 (4) 350,000 11,541 828,541 2020 300,000 (5) — 38,433 (7) 338,433 2021 — — 14,420
Slide 17: Leverage Ratios, Coverage Ratios and Public Debt Covenants
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS As of and for the Three Months Ended 9/30/2018 6/30/2018 3/31/2018 12/31/2017 9/30/2017 Leverage Ratios: Total consolidated debt (1) / total gross assets (2) 56.1% 55.4% 56.4% 55.9% 54.3% Total consolidated debt (1) / total gross assets (2)
Slide 18: 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 9/30/2018 6/30/2018 3/31/2018 12/31/2017 9/30/2017 Tenant improvements (2) $ 2,293 $ 3,854 $ 2,843 $ 9,358 $ 3,213 Leasing costs (3) 1,831 1,626 1,986 1,745 1,993 Building impro
Slide 19: Property Acquisition and Disposition Information Since January 1, 2018
PROPERTY ACQUISITION AND DISPOSITION INFORMATION SINCE JANUARY 1, 2018 (dollars and sq. ft. in thousands, except per sq. ft. data) Acquisitions: We have not acquired any properties since January 1, 2018. Dispositions: Date Number of Number of Sale Sold City and State Properties Buildings Sq. Ft. Pri
Slide 20: Investment in Unconsolidated Joint Ventures
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (dollars in thousands) Weighted GOV GOV Investment at Number of Percent Leased at Average Unconsolidated Joint Ventures: Ownership September 30, 2018 Property Type Buildings Location Square Feet September 30, 2018 Lease Term (1) Prosperity Metro Plaza 51%
Slide 21: Calculation of Consolidated Property NOI and Cash Basis NOI
CALCULATION OF CONSOLIDATED PROPERTY NET OPERATING INCOME (NOI) AND CONSOLIDATED PROPERTY CASH BASIS NOI (1) (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2018 6/30/2018 3/31/2018 12/31/2017 9/30/2017 9/30/2018 9/30/2017 Calculation of Consolidated Property NOI and
Slide 22: Calculation of Same Property NOI and Cash Basis NOI
CALCULATION OF SAME PROPERTY NOI AND CASH BASIS NOI (1) (dollars in thousands) For the Three Months Ended (2) For the Nine Months Ended (3) 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Reconciliation of Consolidated Property NOI to Same Property NOI: Rental income $ 106,102 $ 70,179 $ 322,904 $ 209,362 P
Slide 23: Calculation of EBITDA and Adjusted EBITDA
CALCULATION OF EBITDA AND ADJUSTED EBITDA (1) (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2018 6/30/2018 3/31/2018 12/31/2017 9/30/2017 9/30/2018 9/30/2017 Net income (loss) $ (449) $ 29,695 $ 6,565 $ (17,991) $ 10,989 $ 35,811 $ 30,081 Add: Interest expense 23,3
Slide 24: Calculation of FFO and Normalized FFO
CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO AVAILABLE FOR COMMON SHAREHOLDERS (1) (amounts in thousands, except per share data) For the Three Months Ended For the Nine Months Ended 9/30/2018 6/30/2018 3/31/2018 12/31/2017 9/30/2017 9/30/2018 9/30/2017 Net income (loss) available fo
Slide 25: Definitions of Certain Non-GAAP Financial Measures
DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES Definition of Consolidated Property NOI and Consolidated Property Cash Basis NOI We calculate Consolidated Property NOI and Consolidated Property Cash Basis NOI as shown on page 21. The calculations of Consolidated Property NOI and Consolidated Prop
Slide 26: Portfolio Information
PORTFOLIO INFORMATION Stevens Center, Richland, WA Square Feet:Government 140,152 Properties Income Trust 26 Agency Occupant:Supplement alDepartment Operating and of FinancialEnergy Data, September 30, 2018
Slide 27: Portfolio Summary
PORTFOLIO SUMMARY (1) As of September 30, 2018 % Consolidated % Consolidated Property % of Total % Rental Income Property NOI Cash Basis NOI Number of Number of Sq. Ft. Three Months Three Months Three Months Properties Buildings Sq. Ft. (2) % Sq. Ft. % Leased (3) Leased Ended 9/30/2018 Ended 9/30/20
Slide 28: Summary Consolidated and Same Property Results – Third Quarter
SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS – THIRD 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 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Consolidated properties (end of period) 1
Slide 29: Summary Consolidated and Same Property Results – Nine Months
SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS – NINE MONTHS (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 9/30/2018 9/30/2017 9/30/2018 9/30/2017 Consolidated properties (end of period) 105 7
Slide 30: 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 9/30/2018 6/30/2018 3/31/2018 12/31/2017 9/30/2017 Consolidated Properties (end of period) 105 105 107 108 74 Total sq. ft. (2) 17,046 17,046 17,332 17,499 11,517 Percen
Slide 31: Leasing Analysis by Tenant Type
LEASING ANALYSIS BY TENANT TYPE (1) Sq. Ft. During the Three Months Ended 9/30/2018 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 6/30/2018 (2) 6/30/2018 (2) Expired Executed Executed (Disp
Slide 32: Tenant List
TENANT LIST As of September 30, 2018 (1) % of Total % of % of Total % of Rentable Rentable Annualized Rentable Rentable Annualized Tenant / Agency Sq. Ft. (2) Sq. Ft. (2) Rental Income (3) Tenant Sq. Ft. (2) Sq. Ft. (2) Rental Income (3) U.S. Government: State Governments: 1 Citizenship and Immigrat
Slide 33: Lease Expiration Schedule
LEASE EXPIRATION SCHEDULE (1) As of September 30, 2018 (dollars in thousands) Number of Tenants Expiration of leased Cumulative % Annualized Rental % of Cumulative % Year (2) Expiring square feet (3) % of Total of Total Income Expiring (4) Annualized Total of Total 2018 52 819,971 5.2% 5.2% $ 27,402
Slide 34: Exhibit
EXHIBIT 75 Pleasant Street, Malden, MA Square Feet: 125,521 Occupant: Department of Education, Commonwealth of Massachusetts Government Properties Income Trust 34 Supplemental Operating and Financial Data, September 30, 2018
Slide 35: Consolidated Property Detail Exhibit
CONSOLIDATED PROPERTY DETAIL EXHIBIT (sorted by location) As of September 30, 2018 (1) (dollars in thousands) Annualized Year Built or No. of Primary Rentable Rental Undepreciated Depreciated Date Most Recent Property Location Buildings Tenant Type Sq. Ft. % Leased Income (2) Carrying Value Carrying
Slide 36: Consolidated Property Detail Exhibit
CONSOLIDATED PROPERTY DETAIL EXHIBIT (sorted by location) As of September 30, 2018 (1) (dollars in thousands) Annualized Year Built or No. of Primary Rentable Rental Undepreciated Depreciated Date Most Recent Property Location Buildings Tenant Type Sq. Ft. % Leased Income (2) Carrying Value Carrying
Slide 37: Consolidated Property Detail Exhibit
CONSOLIDATED PROPERTY DETAIL EXHIBIT (sorted by location) As of September 30, 2018 (1) (dollars in thousands) Annualized Year Built or No. of Primary Rentable Rental Undepreciated Depreciated Date Most Recent Property Location Buildings Tenant Type Sq. Ft. % Leased Income (2) Carrying Value Carrying
Government Properties Income Trust — Q3 2018 Earnings Presentation on 6ix