NEWTON, Mass.--(BUSINESS WIRE)--Government Properties Income Trust (NYSE: GOV) today announced its financial results for the quarter ended March 31, 2011.
Results for the Quarter Ended March 31, 2011:
Funds from operations (FFO) were $19.5 million for the quarter ended March 31, 2011, compared to $12.6 million for the same quarter last year. FFO per share for the quarter ended March 31, 2011 was $0.48, compared to $0.43 for the same quarter last year.
Net income for the quarter ended March 31, 2011 was $10.3 million, or $0.25 per share, compared to $6.9 million, or $0.24 per share, for the quarter ended March 31, 2010.
GOV’s weighted average number of common shares outstanding was 40,500,800 and 29,084,128 for the quarters ended March 31, 2011 and 2010, respectively.
A reconciliation of net income determined according to U.S. generally accepted accounting principles, or GAAP, to FFO for the quarters ended March 31, 2011 and 2010 appears later in this press release.
Recent Investment Activities:
Since January 1, 2011, GOV has acquired or has entered into purchase and sale agreements to acquire ten properties for an aggregate purchase price of $194.1 million, excluding acquisition costs, as follows:
- In February 2011, GOV acquired the previously disclosed office property located in Quincy, MA with 92,549 rentable square feet. This property is 100% leased to four tenants, of which 90% is leased to the Commonwealth of Massachusetts and occupied by the Registry of Motor Vehicles as its headquarters. The purchase price was $14.0 million, excluding acquisition costs.
- Also in February 2011, GOV acquired two previously disclosed office properties located in Woodlawn, MD with 182,561 rentable square feet. These properties are 100% leased to two tenants, of which 94% is leased to the U.S. Government and occupied by the Social Security Administration. The purchase price was $28.0 million, excluding acquisition costs.
- In April 2011, GOV entered into a purchase agreement to acquire an office property located in Plantation, FL with 135,819 rentable square feet. This property is 100% leased to the U.S. Government and occupied by the Internal Revenue Service. The contract purchase price is $40.75 million, excluding acquisition costs.
- Also in April 2011, GOV entered into a purchase agreement to acquire two office properties located in Stafford, VA with 64,488 rentable square feet. These properties are 100% leased to the U.S. Government and occupied by the Federal Bureau of Investigation. The contract purchase price is $11.8 million, excluding acquisition costs.
- In May 2011, GOV entered into a purchase agreement to acquire three office properties located in Indianapolis, IN with 433,927 rentable square feet. These properties are 99% leased to 19 tenants, of which 56% is leased to the U.S. Government and occupied by the U.S. Customs and Border Protection Agency. The contract purchase price is $88.0 million, including the assumption of $50 million of mortgage debt and excluding acquisition costs.
- Also in May 2011, GOV entered into a purchase agreement to acquire an office property located in Montgomery, AL with 57,815 rentable square feet. This property is 100% leased to the U.S. Government and serves as the office of the U.S. Attorney for the Middle District of Alabama. The contract purchase price is $11.55 million, excluding acquisition costs.
The four pending acquisitions are subject to GOV’s satisfactory completion of diligence and other customary conditions; accordingly, GOV can provide no assurances that it will acquire these properties.
Conference Call:
On Thursday, May 5, 2011, at 1:00 p.m. Eastern Daylight Time, David Blackman, President and Chief Operating Officer, and Mark Kleifges, Treasurer and Chief Financial Officer, will host a conference call to discuss the first quarter 2011 results.
The conference call telephone number is (800) 230-1059. Participants calling from outside the United States and Canada should dial (612) 234-9959. 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 midnight Eastern Daylight Time on May 12, 2011. To hear the replay, dial (320) 365-3844. The replay pass code is 179321.
A live audio webcast of the conference call will also be available in a listen only mode on GOV’s website, which is located at www.govreit.com. Participants wanting to access the webcast should visit GOV’s website about five minutes before the call. The archived webcast will be available for replay on GOV’s website for about one week after the call.
Supplemental Data:
A copy of GOV’s First Quarter 2011 Supplemental Operating and Financial Data is available for download at GOV’s website, www.govreit.com. GOV’s website is not incorporated as part of this press release.
Government Properties Income Trust is a real estate investment trust, or REIT, which owns properties located throughout the United States which are majority leased to the U.S. Government and several state government tenants. As of March 31, 2011, GOV owned 58 properties with 7.1 million rentable square feet. GOV is headquartered in Newton, Massachusetts.
Please see the following pages for a more detailed statement of our operating results and financial condition.
|
Government Properties Income Trust Condensed Consolidated Statements of Income and Funds from Operations (amounts in thousands, except per share data) (unaudited) |
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| Three Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
| Rental income | $ | 39,076 | $ | 23,355 | ||||
| Expenses | ||||||||
| Real estate taxes | 4,457 | 2,568 | ||||||
| Utility expenses | 3,507 | 1,677 | ||||||
| Other operating expenses | 6,769 | 3,557 | ||||||
| Depreciation and amortization | 8,386 | 4,880 | ||||||
| Acquisition related costs | 829 | 844 | ||||||
| General and administrative | 2,343 | 1,459 | ||||||
| Total expenses | 26,291 | 14,985 | ||||||
| Operating income | 12,785 | 8,370 | ||||||
| Interest and other income | 15 | 51 | ||||||
| Interest expense (including net amortization of debt premiums and deferred financing fees of $418 and $532, respectively) |
(2,537 |
) |
(1,531 |
) |
||||
| Equity in earnings (losses) of an investee | 37 | (28 | ) | |||||
| Income before income tax expense | 10,300 | 6,862 | ||||||
| Income tax expense | (46 | ) | (11 | ) | ||||
| Net income | $ | 10,254 | $ | 6,851 | ||||
| Calculation of FFO (1) | ||||||||
| Net income | $ | 10,254 | $ | 6,851 | ||||
| Plus: depreciation and amortization | 8,386 | 4,880 | ||||||
| Plus: acquisition related costs | 829 | 844 | ||||||
| FFO | $ | 19,469 | $ | 12,575 | ||||
| Weighted average common shares outstanding | 40,501 | 29,084 | ||||||
| Per common share | ||||||||
| Net income | $ | 0.25 | $ | 0.24 | ||||
| FFO | $ | 0.48 | $ | 0.43 | ||||
(1) We compute FFO as shown in the calculations above. Our calculation of FFO differs from the National Association of Real Estate Investment Trusts, or NAREIT, definition because we exclude acquisition related costs from the determination of FFO. 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 amounts, such as acquisition related costs and depreciation expense, FFO can facilitate a comparison of operating performance between historical periods. 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 factor considered by our Board of Trustees in determining the amount of distributions to shareholders. Other factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our unsecured revolving credit facility, the availability of debt and equity capital to us and our expectations of future capital requirements and operating performance. Other REITs may calculate FFO differently than us.
|
Government Properties Income Trust Condensed Consolidated Balance Sheets (amounts in thousands, except share data) (unaudited) |
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| March 31, | December 31, | |||||||||
| 2011 | 2010 | |||||||||
|
ASSETS |
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| Real estate properties: | ||||||||||
| Land | $ 150,209 | $ | 143,774 | |||||||
| Buildings and improvements | 864,712 | 833,719 | ||||||||
| 1,014,921 | 977,493 | |||||||||
| Accumulated depreciation | (137,018 | ) | (131,046 | ) | ||||||
| 877,903 | 846,447 | |||||||||
| Acquired real estate leases, net | 62,569 | 60,097 | ||||||||
| Cash and cash equivalents | 906 | 2,437 | ||||||||
| Restricted cash | 1,820 | 1,548 | ||||||||
| Rents receivable, net | 20,966 | 19,200 | ||||||||
| Deferred leasing costs, net | 921 | 1,002 | ||||||||
| Deferred financing costs, net | 3,455 | 3,935 | ||||||||
| Other assets, net | 12,221 | 16,622 | ||||||||
| Total assets | $ 980,761 | $ | 951,288 | |||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||
| Revolving credit facility | $ 155,000 | $ | 118,000 | |||||||
| Mortgage notes payable | 46,165 | 46,428 | ||||||||
| Accounts payable and accrued expenses | 12,614 | 14,436 | ||||||||
| Due to affiliates | 2,512 | 1,348 | ||||||||
| Acquired real estate lease obligations, net | 13,421 | 13,679 | ||||||||
| 229,712 | 193,891 | |||||||||
| Commitments and contingencies | ||||||||||
| Shareholders’ equity: | ||||||||||
| Common shares of beneficial interest, $.01 par value: 50,000,000 shares | ||||||||||
| authorized, 40,500,800 shares issued and outstanding | 405 | 405 | ||||||||
| Additional paid in capital | 776,913 | 776,913 | ||||||||
| Cumulative other comprehensive income | 6 | 2 | ||||||||
| Cumulative net income | 51,590 | 41,336 | ||||||||
| Cumulative common dividends | (77,865 | ) | (61,259 | ) | ||||||
| Total shareholders’ equity | 751,049 | 757,397 | ||||||||
| Total liabilities and shareholders’ equity | $ 980,761 | $ | 951,288 | |||||||
WARNING CONCERNING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS WHICH CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS. WHENEVER WE USE WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE”, OR SIMILAR EXPRESSIONS, WE ARE MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS AND THEIR IMPLICATIONS ARE BASED UPON OUR PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS AND THEIR IMPLICATIONS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY OUR FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:
- THIS PRESS RELEASE STATES THAT WE HAVE ENTERED AGREEMENTS TO PURCHASE PROPERTIES. THESE TRANSACTIONS ARE SUBJECT TO VARIOUS TERMS AND CONDITIONS TYPICAL OF COMMERCIAL REAL ESTATE TRANSACTIONS. THESE TERMS AND CONDITIONS MAY NOT BE MET. AS A RESULT, SOME OR ALL OF THESE TRANSACTIONS MAY NOT OCCUR OR MAY BE DELAYED.
THE INFORMATION CONTAINED IN OUR FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING UNDER "RISK FACTORS" IN OUR PERIODIC REPORTS, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN OR IMPLIED BY OUR FORWARD LOOKING STATEMENTS. OUR FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION ARE AVAILABLE ON ITS WEBSITE AT WWW.SEC.GOV.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON OUR FORWARD LOOKING STATEMENTS.
EXCEPT AS REQUIRED BY LAW, WE DO NOT INTEND TO UPDATE OR CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.
A Maryland Real Estate Investment 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.