Equity Commonwealth (EQC) 8-K Results of Operations and Financial Condition

Exhibit 99.1

FOR IMMEDIATE RELEASE	Contact:
	Timothy Bonang, Manager of Investor Relations,
	Adam D. Portnoy, Executive Vice President,
	John C. Popeo, Treasurer
	(617) 332-3990
	www.hrpreit.com

HRPT Properties Trust Announces Financial Results for the Periods Ended September 30, 2004

Newton, MA (November 3, 2004):  HRPT Properties Trust (NYSE: HRP) today announced its financial results for the periods ended September 30, 2004, together with comparative results for the 2003 periods as follows:

(in thousands, except per share data)
	Quarter Ended September 30,						Nine Months Ended September 30,
	2004			2003			2004			2003
Total revenues	$	160,419		$	127,434		$	435,678		$	369,637
Net income	36,401			24,619			120,836			79,282
Net income available for common shareholders	24,901			13,119			86,336			44,782
FFO	69,071			56,547			193,712			164,092
FFO available for common shareholders	57,571			45,047			159,212			129,592
Common distributions paid	37,229			28,555			108,138			80,103
Per common share:
Net income available for common shareholders	$		0.14	$		0.09	$		0.49	$	0.33
FFO available for common shareholders	0.32			0.32			0.91			0.97
Common distributions paid	0.21			0.20			0.61			0.60
Weighted average common shares outstanding	177,285			142,717			175,768			134,079

HRPT Properties Trust is a real estate investment trust headquartered in Newton, MA.

(end)

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HRPT Properties Trust

Statement of Income, EBITDA and Funds From Operations

(in thousands, except per share data)

	Quarter Ended September 30,							Nine Months Ended September 30,
	2004			2003				2004			2003
Revenues:
Rental income	$	160,419		$	127,434			$	435,678		$	369,637
Total revenues	160,419			127,434				435,678			369,637
Expenses:
Operating expenses	60,251			50,034				162,804			141,745
Depreciation and amortization	29,192			27,774				79,283			68,943
General and administrative	6,946			4,951				18,474			14,323
Total expenses	96,389			82,759				260,561			225,011
Operating income	64,030			44,675				175,117			144,626
Interest income	190			104				454			254
Interest expense (including amortization of note discounts and premiums and deferred financing fees of $640, $1,480, $3,586 and $4,466, respectively)	(31,423		)	(24,046			)	(82,849		)	(74,187			)
Loss on early extinguishment of debt	—			—				(2,866		)	(3,238			)
Equity in earnings of Senior Housing Properties Trust and Hospitality Properties Trust	3,604			3,886				11,135			11,827
Gain on sale of Senior Housing shares (1)	—			—				14,805			—
Gain on issuance of shares by Senior Housing and Hospitality Properties (1)	—			—				5,040			—
Net income	36,401			24,619				120,836			79,282
Preferred distributions	(11,500		)	(11,500			)	(34,500		)	(34,500			)
Net income available for common shareholders	$	24,901		$	13,119			$	86,336		$	44,782
Calculation of Earnings before Interest, Taxes, Depreciation and Amortization, or EBITDA: (2)
Net income	$	36,401		$	24,619			$	120,836		$		79,282
Loss on early extinguishment of debt	—			—				2,866			3,238
Gain on sale of Senior Housing shares	—			—				(14,805		)	—
Gain on issuance of shares by Senior Housing and Hospitality Properties	—			—				(5,040		)	—
Interest expense	31,423			24,046				82,849			74,187
Equity in earnings of Senior Housing and Hospitality Properties	(3,604		)	(3,886			)	(11,135		)	(11,827			)
EBITDA from equity investments	8,963			10,624				27,722			31,622
Depreciation and amortization	29,192			27,774				79,283			68,943
EBITDA	$	102,375		$	83,177			$	282,576		$		245,445
Calculation of Funds From Operations, or FFO: (3)
Net income	$	36,401		$	24,619			$	120,836		$		79,282
Loss on early extinguishment of debt:
Add: amount included in total expenses	—			—				2,866			3,238
Less: portion settled in cash	—			—				—			—
Depreciation and amortization	29,192			27,774				79,283			68,943
Gain on sale of Senior Housing shares	—			—				(14,805		)	—
Gain on issuance of shares by Senior Housing and Hospitality Properties	—			—				(5,040		)	—
Equity in earnings of Senior Housing and Hospitality Properties	(3,604		)	(3,886			)	(11,135		)	(11,827			)
FFO from equity investments in Senior Housing and Hospitality Properties	7,082			8,040				21,707			24,456
FFO	69,071			56,547				193,712			164,092
Preferred distributions	(11,500		)	(11,500			)	(34,500		)	(34,500			)
FFO available for common shareholders	$	57,571		$	45,047			$	159,212		$		129,592
Weighted average common shares outstanding	177,285			142,717				175,768			134,079
Per common share:
Net income available for common shareholders	$	0.14		$		0.09		$	0.49		$	0.33
FFO available for common shareholders	0.32			0.32				0.91			0.97
Common distributions paid	0.21			0.20				0.61			0.60

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HRPT Properties Trust

Statement of Income, EBITDA and Funds From Operations

(in thousands, except per share data)

(1)We account for our common share investments in Senior Housing Properties Trust, or Senior Housing, and Hospitality Properties Trust, or Hospitality Properties, using the equity method of accounting.  During the nine months ended September 30, 2004, we sold 3,148 of our Senior Housing common shares and recognized a gain of $14,805.  In addition, we recognized gains of $5,040 during the nine months ended September 30, 2004, as a result of share issuances by Senior Housing and Hospitality Properties at prices above our per share carrying value.

(2)We compute EBITDA as net income less gains on equity transactions of equity investments, plus loss on early extinguishment of debt, interest expense, depreciation and amortization and the difference between EBITDA and earnings from equity investments.  We consider EBITDA to be an appropriate measure of performance, along with net income and cash flow from operating, investing and financing activities.  EBITDA does not represent cash generated by operating activities in accordance with generally accepted accounting principles, or GAAP, and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity.

(3)We compute FFO as shown in the calculation above.  Our calculation of FFO differs from the NAREIT definition because we exclude loss on early extinguishment of debt not settled in cash.  We consider FFO to be an appropriate measure of performance for a REIT, along with net income and cash flow from operating, investing and financing activities. We believe that FFO provides useful information to investors because by excluding the effects of certain historical costs, such as depreciation expense and gains or losses on sales of properties, FFO can facilitate comparison of current operating performance among REITs.  FFO does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity.  FFO is one important factor considered by our board of trustees in determining the amount of distributions to shareholders.  Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our revolving bank credit facility and public debt covenants, the availability of debt and equity capital to us and our expectation of future performance.

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HRPT Properties Trust

Balance Sheet

(dollars in thousands)

	September 30,			December 31,
	2004			2003
Assets
Real estate properties, at cost	$	4,594,489		$		3,891,966
Accumulated depreciation	(429,235		)	(363,015				)
	4,165,254			3,528,951
Acquired real estate leases	139,607			68,983
Equity investments	218,174			260,208
Cash and cash equivalents	26,569			11,526
Other assets	202,653			143,576
Total assets	$	4,752,257		$		4,013,244
Liabilities and Shareholders’ Equity
Indebtedness, net	$	2,272,430		$			1,876,821
Acquired real estate lease obligations	39,423			33,206
Other liabilities	126,467			91,566
Shareholders’ equity:
Preferred (20,000,000 shares outstanding)	482,935			482,935
Common (177,316,525 and 142,773,925 shares outstanding)	1,831,002			1,528,716
Total liabilities and shareholders’ equity	$	4,752,257		$	4,013,244

HRPT Properties Trust

Cash Flow Summary

(dollars in thousands)

	Nine Months Ended September 30,
	2004			2003
Cash flow from (used in):
Operating activities	$	160,718		$	147,103
Investing activities	(601,209		)	(308,709		)
Financing activities	455,534			170,266
Increase in cash	15,043			8,660
Cash at beginning of period	11,526			12,384
Cash at end of period	$	26,569		$	21,044

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HRPT Properties Trust

Additional Data

(amounts in thousands)

•Equity in earnings, EBITDA, FFO and cash distributions from equity investments include earnings, EBITDA, FFO and cash distributions from Hospitality Properties and Senior Housing as follows:

	Quarter Ended September 30,					Nine Months Ended September 30,
	2004			2003		2004			2003
Equity in earnings of equity investments:
Hospitality Properties	$	1,698		$	1,639	$		4,860	$		4,887
Senior Housing (1)	1,906			2,247		6,275			6,940
	$	3,604		$	3,886	$		11,135	$		11,827
EBITDA from equity investments:
Hospitality Properties	$	3,862		$	3,978	$	11,477		$			11,933
Senior Housing (1)	5,101			6,646		16,245			19,689
	$	8,963		$	10,624	$	27,722		$			31,622
FFO from equity investments:
Hospitality Properties	$	3,580		$	3,658	$	10,640		$	10,954
Senior Housing (1)	3,502			4,382		11,067			13,502
	$		7,082	$	8,040	$		21,707	$	24,456
Cash distributions from equity investments:
Hospitality Properties	$		2,880	$	2,880	$		8,640	$	8,640
Senior Housing (1)	2,995			3,971		9,961			11,913
	$		5,875	$	6,851	$		18,601	$	20,553

(1) In 2003 we owned 12,809 shares of Senior Housing.  In January and February 2004, we sold 3,148 of these shares in an underwritten public offering for $57,303 (net $54,413).

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HRPT Properties Trust

Additional Data

(amounts in thousands unless otherwise stated)

•The geographic sources of property level revenue and net operating income (rental income less operating expenses) are as follows:

	Quarter Ended September 30,				Nine Months Ended September 30,
	2004		2003		2004			2003
Property Level Revenue (1)
Metro Philadelphia, PA	$	34,442	$	38,148	$		100,675	$			105,612
Metro Washington, DC	19,321		16,301		52,454			50,496
Metro Boston, MA	14,557		11,631		39,464			30,788
Southern California	12,817		11,804		37,295			35,548
Oahu, HI	10,830		—		31,457			—
Metro Austin, TX	10,047		10,464		29,642			32,391
Atlanta, GA	6,371		—		6,371			—
Other markets	52,034		39,086		138,320			114,802
Total	$	160,419	$	127,434	$		435,678	$			369,637
Property Level Net Operating Income (1)
Metro Philadelphia, PA	$	19,904	$	22,824	$		56,528	$	61,329
Metro Washington, DC	12,379		10,155		33,685			33,162
Metro Boston, MA	10,780		8,116		29,047			21,786
Southern California	8,655		8,335		25,561			25,218
Oahu, HI	8,761		—		25,870			—
Metro Austin, TX	4,586		4,856		13,762			16,283
Atlanta, GA	4,174		—		4,174			—
Other markets	30,929		23,114		84,247			70,114
Total	$	100,168	$	77,400	$	272,874		$		227,892

(1)  Includes some triple net lease revenues.

•Comparable property level revenue and net operating income (rental income less operating expenses) for properties owned by us continuously since July 1, 2003, for the quarters ended September 30, 2004 and 2003, are as follows:

	Property Level Revenue (1)				Property Level Net Operating Income
	Quarter Ended September 30,				Quarter Ended September 30, (1)
	2004		2003		2004		2003
Metro Philadelphia, PA	$	34,442	$	38,148	$	19,904	$	22,824
Metro Washington, DC	16,584		16,301		10,365		10,155
Metro Boston, MA	11,802		10,318		8,902		7,223
Southern California	11,839		11,804		8,067		8,335
Oahu, HI	—		—		—		—
Metro Austin, TX	10,047		10,464		4,586		4,856
Atlanta, GA	—		—		—		—
Other markets	39,978		38,475		23,746		22,638
Total	$	124,692	$	125,510	$	75,570	$	76,031

(1)Includes some triple net lease revenues.

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HRPT Properties Trust

Additional Data

(amounts in thousands unless otherwise stated)

•Rental income includes non cash straight line rent adjustments, lease value amortization and lease termination fees as follows:

	Quarter Ended September 30,					Nine Months Ended September 30,
	2004			2003		2004			2003
Non cash straight line rent adjustments	$	5,739		$	4,226	$	14,976		$	11,892
Lease value amortization	(1,143		)	1,035		(1,123		)	1,035
Lease termination fees	1,027			2,118		2,239			2,589

•Cash expenditures made and capitalized for tenant improvements, leasing costs, building improvements, and development and redevelopment activities are as follows:

	Quarter Ended September 30,				Nine Months Ended September 30,
	2004		2003		2004		2003
Tenant improvements	$	8,027	$	7,059	$	17,159	$	18,935
Leasing costs	4,264		3,728		14,826		7,275
Building improvements	5,869		4,722		12,824		10,689
Development and redevelopment activities	1,722		30		5,963		6,721

•Rents charged for office space which were renewed or released during the quarter ended September 30, 2004, were approximately 0.1% lower than rents previously charged for the same space.  Commitments made for expenditures in connection with leasing this space are as follows:

	Total			Renewals		New Leases
Square feet leased during the quarter	1,552			1,081		471
Total commitments for tenant improvements and leasing costs	$	36,027		$	20,865	$	15,162
Average lease term (years)	8.2			7.9		9.1
Leasing costs per square foot per year (whole dollars)	$		2.83	$	2.44	$	3.54

•Debt maturities and weighted average interest rates as of September 30, 2004, are as follows:

Year of Maturity	Scheduled Principal Payments During Period		Weighted Average Interest Rate
2004	$	2,641	7.4	%
2005	183,647		7.5	%
2006	103,151		2.3	%
2007	17,901		7.7	%
2008	52,605		7.8	%
2009	355,331		2.0	%
2010	55,567		8.6	%
2011	226,967		6.8	%
2012	201,115		6.9	%
2013 and thereafter	1,086,272		6.2	%
Total	$	2,285,197	5.7	%

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HRPT Properties Trust

Additional Data

(amounts in thousands unless otherwise stated)

•As of September 30, 2004, 13 tenants were individually responsible for more than 1% of total annualized rents.  Our 10 largest tenants based on annualized rents is as follows:

Tenant or Subsidiary	Annualized Rent (1) (in millions)		% of Annualized Rent
1.  U. S. Government	$	105.9	16.0	%
2.  GlaxoSmithKline plc	14.6		2.2	%
3.  PNC Financial Services Group	11.8		1.8	%
4.  Towers, Perrin, Forster & Crosby, Inc.	11.6		1.7	%
5.  Tyco International Ltd	9.8		1.5	%
6.  Solectron Corporation	9.2		1.4	%
7.  Manugistics, Inc.	8.8		1.3	%
8.  Motorola, Inc.	8.8		1.3	%
9.  Ballard Spahr Andrews & Ingersoll, LLP	8.4		1.3	%
10. Westinghouse Electric Corporation	8.2		1.2	%
Other tenants	466.5		70.3	%
Over one thousand tenants	$	663.6	100.0	%

(1) Annualized rent is rents pursuant to signed leases as of September 30, 2004, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

•As of September 30, 2004, a division of our tenants based on annualized rent is as follows:

Tenant	Annualized Rent (1) (in millions)		% of Annualized Rent
U.S. Government and other governmental tenants	$	114.4	17	%
Medical related tenants	122.3		19	%
Industrial land leases (Oahu, HI)	42.9		6	%
Other investment grade rated tenants (2)	162.4		25	%
Other tenants	221.6		33	%
Total	$	663.6	100	%

(1) Annualized rent is rents pursuant to signed leases as of September 30, 2004, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

(2) Excludes investment grade rated tenants included above.

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HRPT Properties Trust

Additional Data

(dollars and square feet in thousands unless otherwise stated)

•Property and occupancy statistics as of September 30, 2004 and 2003, are as follows:

	All Properties				Comparable Properties (1)
	Quarter Ended September 30,				Quarter Ended September 30,
	2004		2003		2004		2003
Total properties (2)	365		224		215		215
Total square feet (2)	43,333		25,785		24,761		24,761
Square feet leased (3)	40,322		23,473		22,496		22,471
Percentage leased	93.1	%	91.0	%	90.9	%	90.8	%

(1) Includes properties owned by us continuously since July 1, 2003.

(2) Total properties and square feet at September 30, 2004, include 11 land parcels with 9,755 square feet of developed industrial lands in Oahu, Hawaii acquired in December 2003.

(3) Square feet leased includes space being fitted out for occupancy pursuant to signed leases and space which is leased but being offered for sublease by tenants.

•Properties acquired during the nine months ended September 30, 2004, are as follows:

Date Acquired	Location	Number of Properties	Square Feet	Purchase Price (1)			Major Tenant
2/11/04	Arnold, MO	1	65	$		8,343	Convergys Customer Management Group, Inc.
2/24/04	Quincy, MA	1	46	7,739			American Express Company
4/28/04	Memphis, TN	1	125	21,127			Sparks Corporation, LLC
6/2/04	St. Paul, MN	1	423	13,030			The Sportsman’s Guide, Inc.
6/4/04	Virginia Beach, VA	1	75	6,818			Hayes Seay Mattern & Mattern, Inc.
7/16/04	Hallwood (2)	113	5,156	434,659			U.S. Government, Ford Motor Company and Manufacturers & Traders Trust Company
7/20/04	Rockville, MD	3	283	76,383			Manugistics, Inc.
7/29/04	Memphis, TN	1	131	12,010			U.S. Postal Service
8/24/04	Atlanta, GA	1	177	24,594			Affiliated Computer Services, Inc.
9/9/04	Atlanta, GA	1	90	9,514			Practice Works System
9/16/04	Monroeville, PA	1	480	65,585			Westinghouse Electric Corporation
9/21/04	Quincy, MA	2	356	61,717			CitiStreet & Boston Financial Data
		127	7,407	$	741,519

(1)Includes closing costs.

(2)Represents HRPT’s acquisition of Hallwood Realty Partners, L.P., which included properties located in  Atlanta, GA, Dearborn, MI, Baltimore and Rockville, MD, Bellevue, Kent and Tukwila (Seattle), WA, Solon (Cleveland), OH and Sacramento and San Diego, CA.

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HRPT Properties Trust

Additional Data

(dollars and square feet in thousands unless otherwise stated)

•Lease expiration data at September 30, 2004, is as follows:

	Total		2004			2005			2006			2007 and After
Leased properties:
Metro Philadelphia, PA
Total square feet	5,471
Leased square feet (1)	5,223		376			279			145			4,423
Annualized rent (2)	$	129,223	$	7,769		$	7,297		$	4,858		$		109,299
Metro Washington, DC
Total square feet	3,065
Leased square feet (1)	2,853		31			379			193			2,250
Annualized rent (2)	$	79,840	$	957		$	9,285		$	5,478		$		64,120
Metro Boston, MA
Total square feet	2,976
Leased square feet (1)	2,658		15			188			218			2,237
Annualized rent (2)	$	59,450	$	965		$	6,987		$	4,453		$	47,045
Southern California
Total square feet	1,976
Leased square feet (1)	1,881		33			73			197			1,578
Annualized rent (2)	$	52,475	$	1,271		$	3,252		$	7,175		$	40,777
Oahu, HI
Total square feet	9,755
Leased square feet (1)	9,639		6			—			—			9,633
Annualized rent (2)	$	42,929	$	92		$	—		$	—		$	42,837
Metro Austin, TX
Total square feet	2,843
Leased square feet (1)	2,250		63			168			62			1,957
Annualized rent (2)	$	39,008	$	1,608		$	4,136		$	1,323		$	31,941
Atlanta, GA
Total square feet	1,840
Leased square feet (1)	1,749		64			233			164			1,288
Annualized rent (2)	$	34,623	$	1,246		$	4,341		$	2,668		$	26,368
Other markets
Total square feet	15,407
Leased square feet (1)	14,069		539			1,352			1,779			10,399
Annualized rent (2)	$	226,036	$	10,673		$	21,906		$	27,967		$	165,490
Totals:
Total square feet	43,333
Leased square feet (1)	40,322		1,127			2,672			2,758			33,765
Percent of leased square feet			2.8		%	6.6		%	6.8		%	83.8			%
Annualized rent (2)	$	663,584	$	24,581		$	57,204		$	53,922		$	527,877
Percent of annualized rent			3.7		%	8.6		%	8.1		%	79.6			%

(1) Leased square feet includes space being fitted out for occupancy pursuant to signed leases and space which is leased but being offered for sublease by tenants.

(2) Annualized rent is rents pursuant to signed leases as of September 30, 2004, plus expense reimbursements; includes some triple net lease rents and excludes lease value amortization.

10

HRPT Properties Trust

Additional Data

•Leverage and coverage ratios are as follows:

	September 30,		December 31,
Leverage Ratios	2004		2003
Total Debt / Total Assets	47.8	%	46.8	%
Total Debt / Real Estate Properties, at Cost	48.3	%	47.7	%
Total Debt / Total Book Capitalization	49.6	%	48.3	%
Mortgage Debt / Total Assets	9.2	%	8.2	%
Variable Rate Debt / Total Debt	19.6	%	22.0	%

	Quarter Ended September 30,				Nine Months Ended September 30,
Coverage Ratios	2004		2003		2004		2003
EBITDA / Interest Expense	3.3	x	3.5	x	3.4	x	3.3	x
EBITDA / Interest Expense + Preferred Distributions	2.4	x	2.3	x	2.4	x	2.3	x

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