Exhibit 99.1
400 Centre Street, Newton, MA 02458-2076 | | 
| | tel: (617) 332-3990 fax: (617) 332-2261 |
FOR IMMEDIATE RELEASE | | Contact: |
| | Timothy A. Bonang |
| | Manager of Investor Relations |
| | (617) 796-8149 |
| | www.hrpreit.com |
HRPT Properties Trust Announces Results for the Period
Ended March 31, 2006
___________________________________________
Newton, MA (May 8, 2006): HRPT Properties Trust (NYSE: HRP) today announced financial results for the quarter ended March 31, 2006.
Results for the quarter ended March 31, 2006:
Net income available for common shareholders was $131.4 million for the quarter ended March 31, 2006, compared to $20.7 million for the same quarter last year. Net income available for common shareholders per share (EPS) for the quarters ended March 31, 2006 and 2005 was $0.63 and $0.12, respectively. The increase in net income available for common shareholders includes gains recognized in 2006 from the sale of our investments in shares of Senior Housing Properties Trust and Hospitality Properties Trust.
Funds from operations (FFO) available for common shareholders for the quarter ended March 31, 2006, was $64.7 million, or $0.31 per share. This compares to FFO available for common shareholders for the quarter ended March 31, 2005, of $56.7 million, or $0.32 per share.
The weighted average number of common shares outstanding totaled 209,860,625 and 179,816,525, for the quarters ended March 31, 2006 and 2005, respectively.
Occupancy and Leasing Results:
As of March 31, 2006, 93.4% of HRPT’s total square feet was leased, compared to 93.9% leased as of March 31, 2005.
A Maryland Real Estate Trust with transferable shares of beneficial interest listed on the New York Stock Exchange.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
HRPT signed new leases for 606,000 square feet and lease renewals for 1,160,000 square feet during the quarter ended March 31, 2006, for weighted average rental rates that were 2% above prior rents for the same space.
Average lease terms for leases signed during the first quarter of 2006 were 10.3 years. Commitments for tenant improvement and leasing commission (TI/LC) costs for leases signed during the quarter ended March 31, 2006 totaled $10.71 per square foot on a weighted average basis.
Investing Activities:
During the first quarter of 2006, HRPT acquired two portfolios of properties with 1.8 million square feet of office space for $201.6 million, plus closing costs.
Conference Call:
On Monday, May 8, 2006, at 1:00 p.m. Eastern Time, Adam Portnoy, executive vice president, and John Popeo, chief financial officer, will host a conference call to discuss the first quarter 2006 results.
The conference call telephone number is (800) 810-0924. Participants calling from outside the United States and Canada should dial (913) 981-4900. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through May 14, 2006. To hear the replay, dial (719) 457-0820. The replay pass code is 7584489.
A live audio webcast of the conference call will also be available in a listen only mode on HRPT’s web site, which is located at www.hrpreit.com. Participants wanting to access the webcast should visit the company’s web site about five minutes before the call. The archived webcast will be available for replay on HRPT’s web site for about one week after the call.
Supplemental Data:
A copy of HRPT’s First Quarter 2006 Supplemental Operating and Financial Data is available for download at HRPT’s web site.
HRPT Properties Trust is a real estate investment trust, or REIT, which primarily owns office buildings located throughout the United States. As of March 31, 2006, HRPT owned 474 properties with 56.8 million square feet, including almost 18 million square feet of leased industrial and commercial lands in Oahu, HI. HRPT is headquartered in Newton, Massachusetts.
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HRPT Properties Trust
Statements of Income and Funds from Operations
(amounts in thousands, except per share data)
| | Quarter Ended
March 31, | |
| | 2006 | | 2005 | |
| | | | | |
Rental income | | $ | 189,559 | | $ | 166,554 | |
| | | | | |
Expenses: | | | | | |
Operating expenses | | 71,803 | | 63,107 | |
Depreciation and amortization | | 37,666 | | 32,511 | |
General and administrative | | 7,873 | | 6,875 | |
Total expenses | | 117,342 | | 102,493 | |
| | | | | |
Operating income | | 72,217 | | 64,061 | |
| | | | | |
Interest income | | 1,235 | | 180 | |
Interest expense (including amortization of note discounts and premiums and deferred financing fees of $1,138 and $665, respectively) | | (41,294 | ) | (35,607 | ) |
Loss on early extinguishment of debt | | (1,659 | ) | — | |
Equity in earnings of equity investments (1) | | 3,136 | | 3,394 | |
Gain on sale of shares of equity investments (1) | | 116,287 | | — | |
Income from continuing operations | | 149,922 | | 32,028 | |
(Loss) income from discontinued operations | | (87 | ) | 207 | |
Net income | | 149,835 | | 32,235 | |
Preferred distributions | | (11,508 | ) | (11,500 | ) |
Excess redemption price paid over carrying value of preferred shares (2) | | (6,914 | ) | — | |
Net income available for common shareholders | | $ | 131,413 | | $ | 20,735 | |
| | | | | |
Calculation of Funds from Operations, or FFO: (3) | | | | | |
Net income | | $ | 149,835 | | $ | 32,235 | |
Plus: depreciation and amortization | | 37,751 | | 32,721 | |
Loss on early extinguishment of debt: | | | | | |
Add: amount included in total expenses | | 1,659 | | — | |
Less: portion settled in cash | | — | | — | |
Less: gain on sale of shares of equity investments | | (116,287 | ) | — | |
Less: equity in earnings of equity investments | | (3,136 | ) | (3,394 | ) |
Plus: FFO from equity investments | | 6,426 | | 6,681 | |
FFO | | 76,248 | | 68,243 | |
Less: preferred distributions | | (11,508 | ) | (11,500 | ) |
FFO available for common shareholders | | $ | 64,740 | | $ | 56,743 | |
| | | | | |
Weighted average common shares outstanding | | 209,861 | | 179,817 | |
| | | | | |
Per common share: | | | | | |
Income from continuing operations | | $ | 0.63 | | $ | 0.11 | |
(Loss) income from discontinued operations | | — | | — | |
Net income available for common shareholders | | 0.63 | | 0.12 | |
FFO available for common shareholders | | 0.31 | | 0.32 | |
Common distributions paid | | 0.21 | | 0.21 | |
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HRPT Properties Trust
Statements of Income and Funds from Operations
(amounts 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. In March 2006, we sold all of our Senior Housing common shares for gains of $39,066, and all of our Hospitality Properties shares for gains of $77,221.
(2) In March 2006, we redeemed all our 8 million Series A preferred shares for their liquidation preference of $25/share plus accrued and unpaid distributions through the date of the redemption.
(3) We compute FFO as shown in the calculation above. Our calculation of FFO differs from the National Association of Real Estate Investment Trusts, or NAREIT, definition because we add loss on early extinguishment of debt unless 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 a comparison of current operating performance among REITs. FFO 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. 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 expectations of future capital requirements and operating performance.
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