Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Government Properties Income Trust — Q2 2016 Earnings Presentation
34 slides from Office Properties Income Trust's earnings presentation, Jul 28, 2016
Slide 1: Second Quarter 2016 Supplemental Operating and Financial Data
Government Properties Income Trust Exhibit 99.2 181 Spring Street, Atlanta, GA Square Feet: 90,688 Agency Occupant: Department of Homeland Security Second Quarter 2016 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 FINANCIALS Key Financial Data 10 Condensed Consolidated Balance Sheets 11 Condensed Consolidated Statements of Income (Loss) 12 Condensed Consolidated Statements of Cas
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
Slide 5: Corporate Information
1220 Echelon Parkway, Jackson, MS Square Feet: 109,819 Agency Occupant: Federal Bureau of Investigation CORPORATE INFORMATION Government G Goove vern vernr nm meenntt Properties Pro roppeerrttie ies In IIncome ncome com co mee TTrust ruust st 5 Supplemental Su Supppplleeme eme ntal Operating ment Op
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 FBR & Co. James Feldman Bryan Maher James.Feldman@baml.com bmaher@fbr.com (646) 855-5808 (646) 885-5423 Jeffries & Company, Inc. JMP Securities Jonathan Petersen Mitch Germain jpetersen@jefferies.com
Slide 9: Financials
FINANCIALS 9960 Maryland Drive, Richmond, VA Government Square Feet: 173,932Properties Income Trust 9 Agency Occupant: TheOperating Supplemental and Financial Commonwealth Data, June 30, 2016 of Virginia
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 6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015 Selected Balance Sheet Data: Total gross assets (1) $ 2,526,611 $ 2,525,238 $ 2,424,389 $ 2,466,799 $ 2,469,182
Slide 11: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except share data) June 30, December 31, 2016 2015 ASSETS Real estate properties: Land $ 257,746 $ 253,058 Buildings and improvements 1,518,845 1,443,074 Total real estate properties, gross 1,77
Slide 12: Condensed Consolidated Statements of Income (Loss)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (dollars and share amounts in thousands, except per share data) For the Three Months Ended For the Six Months Ended 6/30/2016 6/30/2015 6/30/2016 6/30/2015 Rental income (1) $ 64,061 $ 62,113 $ 127,
Slide 13: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (dollar amounts in thousands) For the Six Months Ended 6/30/2016 6/30/2015 Cash flows from operating activities: Net income (loss) $ 34,200 $ (224,533) Adjustments to reconcile net income (loss) to cash p
Slide 14: Debt Summary
DEBT SUMMARY DEBT SUMMARY As of June 30, 2016 (dollars in thousands) Coupon Interest Principal Maturity Due at Years to Rate Rate Balance (1) Date Maturity Maturity Unsecured Floating Rate Debt: $750,000 unsecured revolving credit facility (2) (5) 1.666% 1.666% $ - 1/31/2019 $ - 2.6 (3) (5) $300,000
Slide 15: Debt Maturity Schedule
DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE As of June 30, 2016 (dollars in thousands) Unsecured Unsecured Secured Floating Fixed Rate Fixed Rate (4) Year Rate Debt Debt Debt (4) Total (5) 2016 $ - $ - $ 730 $ 730 2017 - - 1,549 1,549 2018 - - 1,671 1,671 (1) 2019 - 350,000 9,439 359,439 (2) 2020
Slide 16: 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 6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015 Leverage Ratios: Total debt (book value) (1) / total gross assets (2) 48.4% 48.8% 47.3% 46.3%
Slide 17: 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 6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015 (2) Tenant improvements $ 4,681 $ 1,989 $ 2,763 $ 2,213 $ 1,506 Leasing costs (3) 3,035 4,312
Slide 18: Property Acquisition and Disposition Information Since January 1, 2016
PROPERTY ACQUISITION AND DISPOSITION INFORMATION SINCE JANUARY 1, 2016 PROPERTY ACQUISITION AND DISPOSITION INFORMATION SINCE JANUARY 1, 2016 (dollars and sq. ft. in thousands, except per sq. ft. data) Acquisitions: Weighted Average Purchase Remaining Date Number of Number of Purchase Price (1) / Ca
Slide 19: Calculation of Property NOI and Cash Basis NOI
CALCULATION OF PROPERTY NET OPERATING INCOME (NOI) AND CASH BASIS NOI CALCULATION OF PROPERTY NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015 6/30/2016 6/30/2015 Calculatio
Slide 20: 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) (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2016 6/30/2015 6/30/2016 6/30/2015 Reconciliation of Property NOI to Same Property NOI: (2) (3) Rental income $
Slide 21: Calculation of EBITDA and Adjusted EBITDA
CALCULATION OF EBITDA AND ADJUSTED EBITDA CALCULATION OF EBITDA AND ADJUSTED EBITDA (1) (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015 6/30/2016 6/30/2015 Net income (loss) $ 16,813 $ 17,387 $ (2,339) $ 16,911 $ (191,163)
Slide 22: 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) (amounts in thousands, except per share data) For the Three Months Ended For the Six Months Ended 6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015 6/30/2016 6/30/2015 Net
Slide 23: Non-GAAP Financial Measures Definitions
NON-GAAP FINANCIAL MEASURES DEFINITIONS DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES Definition of NOI and Cash Basis NOI We calculate NOI and Cash Basis NOI as shown on page 19. The calculations of NOI and Cash Basis NOI exclude certain components of net income (loss) in order to provide resu
Slide 24: Portfolio Information
PORTFOLIO INFORMATION 625 Indiana Avenue, Washington, DC Government Square Feet: 160,897Properties Income Trust 24 Supplemental Operating Primary Agency Occupant: U.S.and Financial Data, March 31, 2016 Courts
Slide 25: Portfolio Summary
PORTFOLIO SUMMARY PORTFOLIO SUMMARY (1) As of June 30, 2016 % 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 (3) Leased Ended 6/30/2016 Ended 6/30/2016 (4) Ended 6/30/2016 (4) Pr
Slide 26: Summary Consolidated and Same Property Results – Second Quarter
SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS – SECOND 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 6/30/2016 6/30/2015 6/30/2016 6/3
Slide 27: Summary Consolidated and Same Property Results – Six Months
SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS – SIX MONTHS (dollars and sq. ft. in thousands) Summary Consolidated Results (1) Summary Same Property Results (2) For the Six Months Ended For the Six Months Ended 6/30/2016 6/30/2015 6/30/2016 6/30/2015 P
Slide 28: 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 6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015 Properties (end of period) 72 72 71 71 71 Total sq. ft. (2) 10,985 10,985 10,701 10,701
Slide 29: Leasing Analysis by Tenant Type
LEASING ANALYSIS BY TENANT TYPE LEASING ANALYSIS BY TENANT TYPE (1) Sq. Ft. During the Three Months Ended 6/30/2016 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 3/31/2016 (2)(3) 3/31/2016
Slide 30: Tenant List
TENANT LIST TENANT LIST (1) As of June 30, 2016 % 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 Internal Revenue Service 1,041,80
Slide 31: Lease Expiration Schedule
LEASE EXPIRATION SCHEDULE LEASE EXPIRATION SCHEDULE (1) As of June 30, 2016 (dollars in thousands) Number of Expiration of Annualized % of Tenants leased Cumulative % Rental Income Annualized Cumulative % Year (2) Expiring square feet (3) % of Total of Total Expiring (4) Total of Total 2016 29 546,7
Slide 32: Exhibit
EXHIBIT South Vinnell Way, Boise, ID Square Feet: 180,952 Agency Occupant: National Resource Center Government Properties Income Trust 32 Supplemental Operating and Financial Data, March 31, 2016
Slide 33: Property Detail
PROPERTY DETAIL PROPERTY DETAIL (1) EXHIBIT A (sorted by location) As of June 30, 2016 (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) Carry
Slide 34: Property Detail (Continued)
PROPERTY DETAIL (Continued) PROPERTY DETAIL (1) EXHIBIT A (sorted by location) As of June 30, 2016 (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 Inc
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