Office Properties Income Trust · OTC:OPITQ

Office Properties Income Trust — Government Properties Income Trust — Q4 2013 Earnings Presentation

32 slides from Office Properties Income Trust's earnings presentation, Feb 18, 2014

  1. Slide 1: Government Properties Income Trust Fourth Quarter 2013 Supplemental Operating and Financial Data

    Exhibit 99.2 1220 Echelon Parkway, Jackson, MS. Square Feet: 109,819. Tenant: Federal Bureau of Investigation. Government Properties Income Trust Fourth Quarter 2013 Supplemental Operating and Financial Data 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 12 Consolidated Statements of Income 13 Consolidated Statements of Cash Flows 14 Debt Summary 15

  3. 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

  4. 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

  5. Slide 5: Corporate Information

    CORPORATE INFORMATION One Georgia Center, Atlanta, GA. Square Feet: 375,805. Government Properties Income Trust Primary Tenant: StateOperating Supplemental of GA: Department ofData, and Financial Transportation. December 31, 2013

  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 Two Newton Place primarily owns properties located throughout the United States that are majority leased to government tenants.

  7. Slide 7: Investor Information

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

  8. Slide 8: Research Coverage

    RESEARCH COVERAGE RESEARCH COVERAGE Equity Research Coverage Bank of America Merrill Lynch Research Jefferies & Company, Inc. James Feldman Omotayo Okusanya James.Feldman@baml.com Tokusanya@jefferies.com (646) 855-5808 (212) 336-7076 JMP Securities Morgan Stanley Mitch Germain Vance Edelson Mgermain

  9. Slide 9: Financial Information

    FINANCIAL INFORMATION 180 Spring Street, Atlanta, GA. Square Feet: 90,688. Tenant: Immigration and Customs Enforcement. 915 L Street, Sacramento, CA. Square Feet: 163,840. Government Properties Income Trust Primary Tenant: StateOperating Supplemental of CA: Department ofData, and Financial Finance.

  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 12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012 Shares Outstanding: Common shares outstanding (at end of period) 54,722 54,722 54,674 54,664 54,644 Weighted a

  11. 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 12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012 Selected Balance Sheet Data: Total assets $ 1,632,452 $ 1,553,079 $ 1,527,204 $ 1,539,970 $ 1,562,134 Total

  12. Slide 12: Consolidated Balance Sheets

    CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except per share data) As of As of 12/31/2013 12/31/2012 ASSETS Real estate properties: Land $ 243,686 $ 234,395 Buildings and improvements 1,324,876 1,233,468 1,568,562 1,467,863 Accumulated depreciation (187,635)

  13. 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 12/31/2013 12/31/2012 12/31/2013 12/31/2012 Rental income (1) $ 58,271 $ 54,629 $ 226,910 $ 203,700 Expenses: Real estate

  14. Slide 14: Consolidated Statements of Cash Flows

    CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS (dollar amounts in thousands) For the Year Ended 12/31/2013 12/31/2012 Cash flows from operating activities: Net income $ 54,620 $ 49,960 Adjustments to reconcile net income to cash provided by operating activities: Deprecia

  15. Slide 15: Debt Summary

    DEBT SUMMARY DEBT SUMMARY As of December 31, 2013 (dollars in thousands) Coupon Interest Principal Maturity Due at Years to Rate Rate (1) Balance (1) Date Maturity Maturity Unsecured Floating Rate Debt: $550,000 unsecured revolving credit facility (2) 1.67% 1.67% $ 157,000 10/19/2015 $ 157,000 1.8 (

  16. Slide 16: Debt Maturity Schedule

    DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE As of December 31, 2013 (dollars in thousands) Unsecured Secured Floating Fixed Rate Year Rate Debt Debt (3) Total (4) 2014 - 2,072 2,072 (1) 2015 157,000 48,691 205,691 2016 - 24,708 24,708 (2) 2017 350,000 1,307 351,307 2018 - 1,415 1,415 2019 - 9,168

  17. Slide 17: Leverage Ratios and Coverage Ratios

    LEVERAGE RATIOS AND COVERAGE RATIOS LEVERAGE RATIOS AND COVERAGE RATIOS As of and for the Three Months Ended 12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012 Leverage Ratios: Total debt / total market capitalization (1) 30.5% 28.0% 25.3% 25.3% 27.3% (1) Total debt / total book capitalization 37.7

  18. 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 12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012 Tenant improvements (2) $ 2,477 $ 3,783 $ 606 $ 1,793 $ 2,951 (3) Leasing costs 2,558 891 1,29

  19. Slide 19: Acquisition and Disposition Information Since 1/1/2013

    ACQUISITION AND DISPOSITION INFORMATION SINCE 1/1/2013 ACQUISITION AND DISPOSITION INFORMATION SINCE 1/1/2013 (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 Percent (1) Acquired Cit

  20. Slide 20: Portfolio Information

    PORTFOLIO INFORMATION 65 Bowdoin Street, Burlington, VT. Government Properties Income Trust Square Feet: 26,609. Supplemental Operating and Financial Data, December 31, 2013 Tenant: Dept. of Homeland Security.

  21. Slide 21: Portfolio Summary

    PORTFOLIO SUMMARY PORTFOLIO SUMMARY(1) As of December 31, 2013 % 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 12/31/2013 Ended 12/31/2013 (3) Ended 12/31/2013 (3) Properties majority leased to the

  22. 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, except per sq. ft. data) Summary Consolidated Results (1) Summary Same Property Results (2) For the Three Months Ended For the Three Months Ended 12/31/2013 12/31/2012 12/

  23. 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 12/31/2013 9/30/2013 6/30/2013 3/31/2013 12/31/2012 Properties 68 65 63 63 63 Total sq. ft. (2) 10,317 10,001 9,644 9,644 9,644 Percentage l

  24. Slide 24: Leasing Analysis by Tenant Type

    LEASING ANALYSIS BY TENANT TYPE LEASING ANALYSIS BY TENANT TYPE(1) Sq. Ft. During the Three Months Ended 12/31/2013 Sq. Ft. Leased % of Sq. Ft. Lease New Sq. Ft. Leased % of Sq. Ft. as of Leased as of Expired Renewals Leases Properties as of Leased as of Tenant Type 9/30/2013(2) 9/30/2013(2) Leases

  25. Slide 25: Tenant List

    TENANT LIST TENANT LIST(1) As of December 31, 2013 % of % of % of Total Annualized % of Total 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 740,433 7.2% 12.1% 1 Stat

  26. Slide 26: Lease Expiration Schedule

    LEASE EXPIRATION SCHEDULE LEASE EXPIRATION SCHEDULE(1) As of December 31, 2013 (dollars and sq. ft. in thousands) Number of Annualized % of Annualized Cumulative % of Tenants Sq. Ft. Cumulative % of Rental Income Rental Income Annualized Rental Expiring (2) Expiring (3) % of Sq. Ft. Expiring Sq. Ft.

  27. Slide 27: Exhibits

    EXHIBITS 4712 Southpark Blvd., Ellenwood, GA. Government Properties Income Trust Square Feet: 352,064. Supplemental Operating and Financial Data, December 31, 2013 Tenant: National Archives and Records Administration. .

  28. 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 EXHIBIT A (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2013 12/31/2012 12/31/2013 12/31/2012 Calculation of NOI and Cash Basis NOI

  29. Slide 29: Calculation of EBITDA and Adjusted EBITDA

    CALCULATION OF EBITDA AND ADJUSTED EBITDA CALCULATION OF EBITDA AND ADJUSTED EBITDA EXHIBIT B (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2013 12/31/2012 12/31/2013 12/31/2012 Net income $ 12,724 $ 13,191 $ 54,620 $ 49,960 Add: interest expense 4,443 4,243 16,831 16,89

  30. 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 EXHIBIT C (amounts in thousands, except per share data) For the Three Months Ended For the Year Ended 12/31/2013 12/31/2012 12/31/2013 12/31/2012 Net income $ 12,724 $ 13,191 $

  31. Slide 31: Property Detail

    PROPERTY DETAIL PROPERTY DETAIL(1) EXHIBIT D (sorted by location) (dollars in thousands) Weighted 12/31/2013 Average Year Annualized 12/31/2013 12/31/2013 Built or No. of Primary 12/31/2013 12/31/2013 Rental Undepreciated Depreciated Date Substantially Property Location Buildings Tenant Type Sq. Ft.

  32. Slide 32: Property Detail (continued)

    PROPERTY DETAIL PROPERTY DETAIL(1) (continued) EXHIBIT D (sorted by location) (dollars in thousands) Weighted 12/31/2013 Average Year Annualized 12/31/2013 12/31/2013 Built or No. of Primary 12/31/2013 12/31/2013 Rental Undepreciated Depreciated Date Substantially Property Location Buildings Tenant

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