Government Properties Trust 8-K Government Properties Trust Announces First Quarter 2006 Financial Results

Exhibit 99.2

GOVERNMENT PROPERTIES TRUST, INC.

Supplemental Operating and Financial Data
For the Quarter Ended
March 31, 2006

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TABLE OF CONTENTS

CORPORATE DATA
Company Background	3
Investor Information/Common Stock Data/Dividend Per Share	4
CONSOLIDATED FINANCIAL RESULTS
Financial Highlights	5
Consolidated Balance Sheets	6
Consolidated Statements of Operations	7
Funds from Operations	8
Reconciliation of Earnings Before Interest, Taxes and Depreciation and Amortization	9
Debt Summary	10
PORTFOLIO DATA
Portfolio Overview	12
Occupancy and Delinquency Rates	13
Forward-looking information and Non-GAAP information	14

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COMPANY BACKGROUND

Government Properties Trust, Inc. primarily invests in single tenant properties under long-term leases to the U.S. government, state governments, local governments, and government-sponsored enterprises. We are a self-managed, self-administered real estate investment trust, or REIT. We believe that we are the only REIT whose stated business model calls for acquiring and holding for investment solely government-leased properties.

Our business consists of buying and managing recently built or renovated office properties primarily leased to the federal government, acting through the General Services Administration (“GSA”), under long-term leases. We began formal operations with our first property acquisition in December 2002. At March 31, 2006, we owned twenty primarily GSA-leased properties. These properties are 97% occupied and had a weighted-average remaining lease term of approximately 10 years based on the square footage of the properties as of March 31, 2006. We own each of our properties through separate wholly-owned entities. We intend to expand our portfolio by acquiring additional primarily government-leased properties.

This Supplemental Operating and Financial Data package supplements the information provided in our annual and quarterly reports filed with the Securities and Exchange Commission (SEC). Additional information about us and our properties is also available at our websitewww.gptrust.com.

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INVESTOR INFORMATION

BOARD OF DIRECTORS

Jerry D. Bringard	Robert M. Ames
Chairman
Philip S. Cottone	Robert A. Peck
Thomas D. Peschio	Richard H. Schwachter

MANAGEMENT

Thomas D. Peschio President & Chief Executive Officer	Nancy D. OlsonChief Financial Officer, Treasurer
Oscar Peterson Director of Asset Acquisition	D. Gary Marron Director of Asset Management
James E. Okell Director of Acquisition Processing	Edward C. Fuxa Director of Accounting and Finance
John D. Ellsworth General Counsel

COMPANY INFORMATION

Corporate Headquarters	Investor Relations Contact
13625 California Street	Sharon D. Latham
Suite 310	(402) 391-0010 ext. 207
Omaha, Nebraska 68154	(402) 391-4144 (fax)
(402) 391-0010	slatham@gptrust.com

TRADING MARKET

Our common stock is traded on the New York Stock Exchange under the symbol “GPT.” Our common stock began trading on January 27, 2004.

DIVIDENDS

We declared our initial dividend of $0.075 per share of common stock, which we paid on January 31, 2003. We have paid subsequent dividends of $0.15 per share each quarter thereafter from April 15, 2003 through April 14, 2006.

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GOVERNMENT PROPERTIES TRUST, INC.
First Quarter 2006
FINANCIAL HIGHLIGHTS
(in thousands, except share amounts)

	(Unaudited)
	Three Months
	Ended March 31,
Income Items	2006			2005
Total revenue	$	10,366		$	4,504
Net loss		(805	)		(60	)
Net loss per common share		(0.04	)		(0.00	)
Funds from operations (FFO) (a)		2,817			1,255
FFO per common share		0.14			0.06
Earnings before interest, taxes and depreciation and amortization (EBITDA) (b)		6,442			2,710
Dividends declared per share		0.15			0.15
	March 31,			December 31,
		2006			2005
Balance Sheet Items
Investment in real estate, net	$	398,882		$	377,804
Total cash and cash equivalents		13,543			21,744
Total debt(c)		259,784			242,533

(a)	For reconciliation of the difference between FFO and net loss, see page 8.
(b)	For reconciliation of the difference between EBITDA and net loss, see page 9.
(c)	Includes premium on assumed notes payable of $1.4 million and lines of credit of $26.5 million and $17.5 million at March 31, 2006 and December 31, 2005, respectively.

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GOVERNMENT PROPERTIES TRUST, INC.
First Quarter 2006
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)

	March 31,			December 31,
	2006			2005
	(unaudited)
ASSETS
Real estate at cost:
Land	$	35,986		$	32,800
Buildings and improvements		306,557			280,861
Tenant origination costs		72,573			60,405
Real estate under development		228			16,577
Furniture and equipment		474			456
		415,818			391,099
Accumulated depreciation		(16,936	)		(13,295	)
		398,882			377,804
Cash and cash equivalents		2,512			4,857
Restricted cash escrows		11,031			16,887
Tenant receivables		8,167			6,873
Notes receivable from tenant		586			603
Deferred costs, net		3,942			4,020
Real estate deposits		150			450
Other assets		4,068			1,583
Total assets	$	429,338		$	413,077
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses	$	9,259		$	8,420
Dividends payable		3,114			3,110
Lines of credit		26,480			17,500
Mortgage notes payable		233,304			225,033
Total liabilities		272,157			254,063
Stockholders’ equity:
Common stock ($0.01 par value; 50,000,000 shares authorized, 20,763,136 and 20,721,612 shares issued and outstanding at March 31, 2006 and December 31, 2005, respectively)		206			206
Additional paid-in capital		189,548			189,123
Accumulated deficit		(34,835	)		(30,916	)
Accumulated other comprehensive income		2,262			601
Total stockholders’ equity		157,181			159,014
Total liabilities and stockholders’ equity	$	429,338		$	413,077

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GOVERNMENT PROPERTIES TRUST, INC.
First Quarter 2006
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share amounts)

	THREE MONTHS ENDED
	MARCH 31,
	2006			2005
Revenue
Rental income	$	9,800		$	4,324
Tenant reimbursements		566			180
Total revenue		10,366			4,504
Expenses
Property operations		1,811			855
Real estate taxes		926			457
Depreciation and amortization		3,641			1,322
General and administrative		1,309			1,140
Total expenses		7,687			3,774
Operating income		2,679			730
Other income (expense)
Interest income		122			658
Interest expense		(3,403	)		(1,338	)
Amortization of deferred financing fees		(203	)		(110	)
Net loss	$	(805	)	$	(60	)
Earnings per share (basic and diluted)
Net loss	$	(0.04	)	$	—
Distributions declared per share	$	0.15		$	0.15
Weighted average shares outstanding (basic and diluted)		20,604			20,540
Net loss	$	(805	)	$	(60	)
Other comprehensive income
Unrealized derivative gain on forward-starting interest rate swaps		1,660			—
Comprehensive income (loss)	$	855		$	(60	)

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GOVERNMENT PROPERTIES TRUST, INC.
First Quarter 2006
FUNDS FROM OPERATIONS
(unaudited and in thousands, except per share amounts)

	THREE MONTHS
	ENDED
	MARCH 31,
	2006			2005
Net loss	$	(805	)	$	(60	)
Adjustments to reconcile to funds from operations:
Real estate depreciation and amortization (a)		3,622			1,315
Funds from operations	$	2,817			1,255
Funds from operations per common share	$	0.14		$	0.06
Weighted average common shares outstanding		20,604			20,540

(a) Excludes depreciation of non-real estate assets of $19,000 and $7,000 for the three months ended March 31, 2006 and 2005, respectively.

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GOVERNMENT PROPERTIES TRUST, INC.
First Quarter 2006
EARNINGS BEFORE INTEREST, TAXES AND DEPRECIATION AND AMORTIZATION

	Three Months
	Ended March 31,
(in thousands)	2006			2005
Net loss	$	(805	)	$	(60	)
Adjustments for:
Depreciation and amortization		3,641			1,322
Interest expense (a)		3,606			1,448
Earnings before interest, taxes and depreciation and amortization	$	6,442		$	2,710

(a) Includes amortization of deferred financing fees.

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GOVERNMENT PROPERTIES TRUST, INC.
First Quarter 2006
DEBT SUMMARY
(in thousands)

	Interest			Principal		Maturity		Due at
	Rate			Balance		Date		Date
Fixed Interest Rate Debt
Bakersfield DEA Property		5.867	%	$	1,423		03/01/2020	$	1,048
Baton Rouge VA Property		5.867	%		4,767		03/01/2020		3,510
Charleston SSA Property		5.74	%		13,497		05/01/2013		11,868
Clarksburg GSA Property		5.74	%		8,026		05/01/2013		7,056
Charleston Federal Courthouse Property		5.867	%		14,397		03/01/2020		10,600
College Park FDA Property		6.75	%		16,190		10/26/2026		121
Dallas SSA Property		5.09	%		6,214		10/01/2015		5,153
Kingsport SSA Property		8.23	%		2,197		04/01/2010		2,008
Lenexa FDA Property		5.44	%		7,793		08/11/2009		7,286
Martinsburg IRS Property		5.24	%		19,600		08/01/2015		16,694
Parkersburg BPD Property		5.40	%		26,800		03/15/2021		10,354
Parkersburg BPD Property		5.75	%		5,000		03/15/2021		5,000
Pittsburgh FBI Property		5.50	%		20,421		08/01/2009		19,033
Pittsburgh USCIS Property		5.13	%		7,802		12/11/2011		6,893
Portland Property		5.49	%		39,100		05/11/2015		32,632
Riverside CA Property		5.79	%		8,863		12/01/2014		7,584
Sterling DEA Property		7.98	%		15,407		03/01/2020		3,383
Vicksburg Corps of Engineers Property		5.62	%		14,400		08/01/2016		14,400
				$	231,897			$	164,623

DEBT MATURITIES
Period ending March 31,	Amount
2006	$	3,450
2007		4,111
2008		4,386
2009		30,564
2010		4,281
Thereafter		185,105
	$	231,897

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GOVERNMENT PROPERTIES TRUST, INC.
First Quarter 2006
PROPERTY PORTFOLIO

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								(in thousands)
								Gross		Lease
								Estimated		Maturity/
	Tenant/	Year Built/		Rentable		Rent/		Annualized		Early
Location	Occupant	Renovated		Sq. Ft.		Sq. Foot		Rent		Termination	Lease Type
Bakersfield, California	U.S. Drug Enforcement Administration		2000		9,800	$	32.33	$	317	Nov. 2010/ Nov. 2008	Modified Gross Lease
Kingsport, Tennessee	U.S. Social Security Administration		1999		22,848	$	17.61	$	402	Oct. 2014/ Oct. 2009	Modified Gross Lease
Charleston, West Virginia	U.S. Social Security Administration		1959/1999		90,050	$	22.60	$	2,035	Dec. 2019/ None	Modified Gross Lease
Clarksburg, West Virginia	U.S. Department of Justice, Drug Enforcement Administration, Federal Bureau of Investigation, Social Security Administration		1998		55,443	$	23.55	$	1,306	Jan. 2019/ Jan. 2016	Modified Gross Lease
Mineral Wells, West Virginia	U.S. Bureau of Public Debt		2003		38,324	$	13.07	$	501	Sep. 2017/ Sep. 2012	Modified Gross Lease
Pittsburgh, Pennsylvania	U.S. Federal Bureau of Investigation		2001		87,178	$	37.81	$	3,296	Oct. 2016/ None	Modified Gross Lease
Lenexa, Kansas	U.S. Food and Drug Administration		1991		53,500	$	22.15	$	1,185	Jun. 2012/ None	Modified Gross Lease
Baton Rouge, Louisiana	U.S. Veterans Administration		2004		30,000	$	24.26	$	728	Jun. 2019/ None	Modified Gross Lease
Charleston, South Carolina	United States Federal Courthouse		1999		44,250	$	37.93	$	1,679	Jul. 2019/ None	Modified Net Lease
College Park, Maryland	U.S. Food and Drug Administration		2004		79,090	$	36.43	$	2,396	Aug. 2014/ None	Modified Gross Lease
Portland, Oregon	U. S.- Various Agencies, Integra Telecom		2002		226,110	$	21.75	$	4,735	Apr. 2015/ None	Modified Gross Leases
Pittsburgh, Pennsylvania	U.S. Citizenship and and Immigration Services		2004		36,153	$	33.67	$	1,217	Feb. 2014/ None	Modified Gross Lease
Parkersburg, West Virgina	U.S. Bureau of Public Debt		2004		182,500	$	25.64	$	4,679	Mar. 2019/ None	Modified Gross Lease
Buffalo, New York (Niagara Center)	U.S. - Various Agencies		2004		270,082	$	22.07	$	5,336	Jun. 2015/ Jun. 2010	Modified Gross Lease
Buffalo, New York	U.S. Social Security Administration		2003		32,223	$	25.59	$	824	May 2015/ May 2010	Modified Gross Lease
Sterling, Virginia	U.S. Drug Enforcement Agency		2002		49,692	$	44.81	$	2,227	Mar. 2020/ None	Modified Gross Lease
Martinsburg, West Virginia	U.S. Internal Revenue Service		1996		122,475	$	24.81	$	3,038	July 2015/ None	Modified Net Lease
Dallas, Texas	U.S. Social Security Administration		2005		27,200	$	39.87	$	1,084	Aug. 2020/ Aug. 2015	Modified Gross Lease
Vicksburg, Mississippi	U.S. Army Corps of Engineers		1997		199,404	$	16.80	$	3,350	July 2016/ None	Modified Gross Lease
Riverside, California	County of Riverside – Department of Child Support Services		1989/1994		117,168	$	18.46	$	2,163	Jan. 2017/ None	Modified Gross Lease
					1,773,490	$	23.96	$	42,498

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GOVERNMENT PROPERTIES TRUST, INC.
First Quarter 2006
OCCUPANCY AND DELINQUENCY RATES

During our history, each of our properties have had no delinquencies.

As of March 31, 2006, our total Property Portfolio is 97% occupied. Our current vacancies consist of:

• Approximately 15,000 rentable square feet in our College Park FDA property

• Approximately 8,000 rentable square feet in our Portland property

• Approximately 23,000 rentable square feet in our Buffalo Niagara Center property

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GOVERNMENT PROPERTIES TRUST, INC.

LEGAL NOTICES

Forward-looking information

This report contains forward-looking statements. These forward-looking statements include estimates regarding our gross annualized rent.

These and other forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “intends,” “continue,” or the negative of such terms, or other comparable terminology. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements.

Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various risks and other negative factors, including the fact that our management only recently joined us; we must invest the net proceeds of our January, 2004 IPO into the acquisition of acceptable properties which we are still in the process of consummating; we depend on the U.S. government for a significant portion of our revenues; our properties may have a higher risk of terrorist attack because the U.S. government is our principal tenant; we plan to incur debt to finance, on average, approximately 75% of the acquisition cost of the properties we buy; most of our leases do not provide for a full pass-through of increases in property operating costs; we have made and expect to continue to make quarterly dividend distributions that include a return of capital. Other such considerations may be disclosed from time to time in our SEC filings.

All forward-looking statements included in this report are based on information available to us on the date hereof. We assume no obligation to update any forward-looking statements.

Non-GAAP Financial Information

This report contains non-GAAP financial information, including funds from operations (FFO) and earnings before interest, taxes, depreciation and amortization (EBITDA). This report also contains the most directly comparable GAAP information and a GAAP to non-GAAP reconciliation.

We believe FFO and EBITDA are useful to investors as indicators of our ability to service debt and pay cash distributions. We use FFO and EBITDA for internal budgeting and planning purposes.

FFO and EBITDA, as calculated by us, may not be comparable to FFO and EBITDA reported by other companies that do not define these terms exactly as we define them. FFO and EBITDA do not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to operating income or net income determined in accordance with GAAP as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of liquidity.

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