Fourth Quarter Net Loss Available for Common
Shareholders of $0.18 Per Share
Fourth Quarter Normalized FFO Available for
Common Shareholders of $0.50 Per Share
Completed 520,150 Square Feet of Leasing in
the Fourth Quarter
Fourth Quarter Same Property Cash Basis NOI
Increased 2.9%
Acquired First Potomac Realty Trust for
Approximately $1.4 Billion on October 2, 2017
Government Properties Income Trust (Nasdaq: GOV) today announced
its financial results for the quarter and year ended December 31,
2017.
David Blackman, President and Chief Operating Officer of GOV,
made the following statement:
“Government Properties Income Trust completed significant
leasing volume in the fourth quarter of 2017, entering new and
renewal leases for over 520,000 square feet with a 3.3% average
roll up in rent. We also experienced solid operating results as
evidenced by our 2.9% increase in Same Property Cash Basis NOI
compared to the fourth quarter of 2016. As previously announced, we
completed our acquisition of First Potomac Realty Trust during the
quarter. The integration is complete and initial property level
operating results relating to that acquisition have exceeded
expectations. We also continued to advance our long term financing
plan for the acquisition; certain properties have been placed under
agreements for sale, marketing of others is progressing, and we
have identified additional properties to market for potential
sale.”
Results for the Quarter Ended December 31, 2017:
Net loss available for common shareholders determined in
accordance with U.S. generally accepted accounting principles, or
GAAP, was $18.3 million, or $0.18 per diluted share, for the
quarter ended December 31, 2017, compared to net income
available for common shareholders of $12.1 million, or $0.17 per
diluted share, for the quarter ended December 31, 2016. Net
loss available for common shareholders for the quarter ended
December 31, 2017 includes a $9.3 million, or $0.09 per
diluted share, loss on impairment of real estate. The weighted
average number of diluted common shares outstanding was 99.0
million for the quarter ended December 31, 2017 and 71.1
million for the quarter ended December 31, 2016.
Normalized funds from operations, or Normalized FFO, available
for common shareholders for the quarter ended December 31,
2017 were $49.2 million, or $0.50 per diluted share, compared to
Normalized FFO available for common shareholders for the quarter
ended December 31, 2016 of $41.5 million, or $0.58 per diluted
share.
Reconciliations of net income (loss) available for common
shareholders determined in accordance with GAAP to funds from
operations, or FFO, available for common shareholders and
Normalized FFO available for common shareholders for the quarters
ended December 31, 2017 and 2016 appear later in this press
release.
Results for the Year Ended December 31, 2017:
Net income available for common shareholders determined in
accordance with GAAP was $11.8 million, or $0.14 per diluted share,
for the year ended December 31, 2017, compared to net income
available for common shareholders of $57.8 million, or $0.81 per
diluted share, for the year ended December 31, 2016. Net income
available for common shareholders for the year ended December 31,
2017 includes a $9.5 million, or $0.11 per diluted share, loss on
impairment of real estate. The weighted average number of diluted
common shares outstanding was 84.7 million for the year ended
December 31, 2017 and 71.1 million for the year ended December 31,
2016.
Normalized FFO available for common shareholders for the year
ended December 31, 2017 were $171.1 million, or $2.02 per diluted
share, compared to Normalized FFO available for common shareholders
for the year ended December 31, 2016 of $167.9 million, or $2.36
per diluted share.
Reconciliations of net income available for common shareholders
determined in accordance with GAAP to FFO available for common
shareholders and Normalized FFO available for common shareholders
for the years ended December 31, 2017 and 2016 appear later in
this press release.
Leasing, Occupancy and Same Property Results:
During the quarter ended December 31, 2017, GOV entered new
and renewal leases for an aggregate 520,150 rentable square feet at
weighted (by rentable square feet) average rents that were 3.3%
above prior rents for the same space. The weighted average (by
rentable square feet) lease term for leases entered during the
quarter ended December 31, 2017 was 5.1 years. Leasing
concessions and capital commitments for new and renewal leases
entered during the quarter ended December 31, 2017 were $5.6
million, or $2.11 per square foot, per lease year. GOV's leasing
during the quarter ended December 31, 2017 included
approximately 279,000 square feet entered with government tenants
for a weighted average (by rentable square feet) lease term of 5.5
years, weighted average (by rentable square feet) rents that were
8.0% higher than prior rents for the same space and leasing
concessions and capital commitments of $1.25 per square foot per
weighted average lease year.
As of December 31, 2017, 94.2% of GOV’s total rentable
square feet was leased, compared to 95.0% as of September 30, 2017
and 95.1% as of December 31, 2016. Occupancy for properties
owned continuously since October 1, 2016, or same properties,
was 94.8% as of December 31, 2017, which compares with 95.2%
as of December 31, 2016. Same properties net operating income,
or NOI, increased 0.9% and same properties cash basis NOI, or Cash
Basis NOI, increased 2.9% for the quarter ended December 31,
2017 compared to the same period in 2016.
Reconciliations of net income (loss) available for common
shareholders determined in accordance with GAAP to Consolidated
Property NOI and to Consolidated Property Cash Basis NOI for the
quarters and years ended December 31, 2017 and 2016 appear
later in this press release.
Recent Acquisition Activities:
On October 2, 2017, GOV completed its previously announced
acquisition of First Potomac Realty Trust (NYSE: FPO), or FPO,
including 35 office properties (72 buildings) with approximately
6.0 million rentable square feet that were 93.3% occupied as
of the date of acquisition and two properties (three
buildings) with approximately 443,900 rentable square feet that
were 100.0% occupied as of the date of acquisition that are owned
in two unconsolidated joint ventures in which GOV acquired FPO's
50% and 51% interests. GOV acquired FPO for an aggregate
transaction value of approximately $1.4 billion.
Recent Disposition Activities:
In October 2017, GOV sold a vacant office property (one
building) located in Albuquerque, NM with 29,045 rentable square
feet for $2.0 million, excluding closing costs.
In January 2018, GOV entered an agreement to sell an office
property (one building) located in Minneapolis, MN with 193,594
rentable square feet for $20.0 million, excluding closing costs.
This sale is expected to occur in the first quarter of 2018.
In February 2018, GOV entered an agreement to sell an office
property (one building) located in Safford, AZ with 36,139 rentable
square feet for $8.3 million, excluding closing costs. This sale is
expected to occur in the second quarter of 2018.
In February 2018, GOV entered an agreement to sell an office
property (one building) located in Sacramento, CA with 110,500
rentable square feet for $10.8 million, excluding closing costs.
This sale is expected to occur in the second quarter of 2018.
Conference Call:
On Monday, February 26, 2018, at 11:00 a.m. Eastern
Time, President and Chief Operating Officer, David Blackman, and
Chief Financial Officer and Treasurer, Mark Kleifges, will host a
conference call to discuss GOV’s fourth quarter and full year 2017
results.
The conference call telephone number is (877) 328-1172.
Participants calling from outside the United States and Canada
should dial (412) 317-5418. 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 Monday, March 5, 2018. To
hear the replay, dial (412) 317-0088. The replay pass code is
10115726. A live audio webcast of the conference call will also be
available in a listen only mode on GOV’s website, 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
following the call for about one week. The transcription,
recording and retransmission in any way of GOV’s fourth quarter
conference call are strictly prohibited without the prior written
consent of GOV.
Supplemental Data:
A copy of GOV’s Fourth Quarter 2017 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.
GOV is a real estate investment trust, or REIT, which primarily
owns properties located throughout the United States that are
majority leased to the U.S. Government and other government tenants
and office properties in the metropolitan Washington, D.C. market
area that are leased to government and private sector tenants. GOV
is managed by the operating subsidiary of The RMR Group Inc.
(Nasdaq: RMR), an alternative asset management company that is
headquartered in Newton, Massachusetts.
Please see the pages attached to this news release for a
more detailed statement of GOV’s operating results and financial
condition and for an explanation of GOV’s calculation of FFO
available for common shareholders, Normalized FFO available for
common shareholders, NOI and Cash Basis NOI and a reconciliation of
those amounts to amounts determined according to GAAP.
WARNING CONCERNING
FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD
LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO,
WHENEVER GOV USES WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”,
“INTEND”, “PLAN”, “ESTIMATE”, “WILL”, “MAY” AND NEGATIVES OR
DERIVATIVES OF THESE OR SIMILAR EXPRESSIONS, GOV IS MAKING FORWARD
LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON
GOV’S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING
STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR.
ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN
OR IMPLIED BY GOV’S FORWARD LOOKING STATEMENTS AS A RESULT OF
VARIOUS FACTORS. FOR EXAMPLE:
- MR. BLACKMAN'S STATEMENTS REGARDING
GOV'S QUARTERLY LEASING ACTIVITIES AND OPERATING RESULTS MAY IMPLY
THAT SIMILAR OR BETTER RESULTS WILL BE ACHIEVED IN THE FUTURE.
HOWEVER, GOV CANNOT BE SURE THAT IT WILL REALIZE SIMILAR OR BETTER
LEASING OR OPERATING RESULTS IN THE FUTURE. FURTHER, MR. BLACKMAN
STATES THAT INTEGRATION OF GOV'S FPO ACQUISITION IS COMPLETE AND
THAT INITIAL PROPERTY LEVEL OPERATING RESULTS RELATING TO THAT
ACQUISITION HAVE EXCEEDED EXPECTATIONS. THIS MAY IMPLY THAT GOV
WILL CONTINUE TO REALIZE THESE OR IMPROVED RESULTS RELATING TO THIS
ACQUISITION. HOWEVER, GOV HAS ONLY BEGUN TO OPERATE THESE
PROPERTIES AND IT MAY FAIL TO REALIZE THESE IMPROVED RETURNS. IN
ADDITION, MR. BLACKMAN STATES THAT GOV CONTINUES TO ADVANCE ITS
LONG TERM FINANCING PLAN FOR THIS ACQUISITION, NOTING THAT GOV HAS
PLACED CERTAIN OF ITS PROPERTIES UNDER AGREEMENT FOR SALE, THAT
MARKETING OF OTHERS IS PROCEEDING AND THAT GOV HAS IDENTIFIED
ADDITIONAL PROPERTIES TO MARKET FOR POTENTIAL DISPOSITION. HOWEVER,
THE SALES OF PROPERTIES MAY BE DELAYED OR THEIR TERMS MAY CHANGE,
AND OFTEN ARE. FURTHER, GOV MAY NOT BE ABLE TO SUCCESSFULLY SELL
OTHER PROPERTIES IT HAS IDENTIFIED FOR POTENTIAL DISPOSITION AND
GOV MAY REALIZE LOSSES ON ANY SUCH SALES OR IN CONNECTION WITH
DECISIONS TO PURSUE SELLING CERTAIN OF ITS PROPERTIES.
- GOV HAS ENTERED AGREEMENTS TO SELL
THREE PROPERTIES. THESE TRANSACTIONS ARE SUBJECT TO CONDITIONS.
THESE CONDITIONS MAY NOT BE MET AND THESE TRANSACTIONS MAY NOT
OCCUR, MAY BE DELAYED OR THE TERMS MAY CHANGE.
THE INFORMATION CONTAINED IN GOV’S FILINGS WITH THE SECURITIES
AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER “RISK FACTORS” IN
GOV’S PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER
IMPORTANT FACTORS THAT COULD CAUSE GOV’S ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THOSE STATED IN OR IMPLIED BY GOV’S FORWARD LOOKING
STATEMENTS. GOV’S FILINGS WITH THE SEC ARE AVAILABLE ON THE SEC’S
WEBSITE AT WWW.SEC.GOV.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING
STATEMENTS.
EXCEPT AS REQUIRED BY LAW, GOV DOES NOT INTEND TO UPDATE OR
CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW
INFORMATION, FUTURE EVENTS OR OTHERWISE.
Government Properties Income Trust Consolidated
Statements of Income (Loss) (amounts in thousands, except
per share data) (unaudited) Three
Months Ended December 31, Year Ended December 31,
2017 2016 2017 2016
Rental income $ 107,170 $ 66,030 $ 316,532
$ 258,180 Expenses: Real estate taxes 12,962
7,893 37,942 30,703 Utility expenses 6,812 3,939 20,998 17,269
Other operating expenses 21,303 14,259 65,349 54,290 Depreciation
and amortization 47,639 18,440 109,588 73,153 Loss on impairment of
real estate 9,260 — 9,490 — Acquisition related costs — 828 — 1,191
General and administrative 6,532 3,547
18,847 14,897 Total expenses
104,508 48,906 262,214
191,503 Operating income 2,662 17,124 54,318 66,677
Dividend income 304 304 1,216 971 Interest income 119 95 1,962 158
Interest expense (including net
amortization of debt premiums and discounts and debt issuance costs
of $814, $808, $3,420 and $2,832, respectively)
(21,807 ) (12,774 ) (65,406 ) (45,060 ) Gain (loss) on early
extinguishment of debt — — (1,715 ) 104 Net gain (loss) on issuance
of shares by Select Income REIT — (2 )
72 86
Income (loss) from continuing operations
before income taxes, equity in earnings of investees and gain on
sale of real estate
(18,722 ) 4,747 (9,553 ) 22,936 Income tax expense (36 ) (38 ) (101
) (101 ) Equity in earnings of investees 767
7,516 21,571 35,518 Income
(loss) from continuing operations (17,991 ) 12,225 11,917 58,353
Income (loss) from discontinued operations —
(160 ) 173 (589 ) Income (loss) before gain on
sale of real estate (17,991 ) 12,065 12,090 57,764 Gain on sale of
real estate — — —
79 Net income (loss) (17,991 ) 12,065 12,090 57,843
Preferred units of limited partnership distributions (275 )
— (275 ) — Net income (loss)
available for common shareholders $ (18,266 ) $ 12,065 $
11,815 $ 57,843 Weighted average common shares
outstanding (basic) 99,040 71,079
84,633 71,050 Weighted average common
shares outstanding (diluted) 99,040 71,079
84,653 71,071 Per common
share amounts (basic and diluted): Income (loss) from continuing
operations $ (0.18 ) $ 0.17 $ 0.14 $ 0.82 Income (loss) from
discontinued operations $ — $ — $ — $ (0.01 ) Net income (loss)
available for common shareholders $ (0.18 ) $ 0.17 $ 0.14 $ 0.81
Government Properties Income Trust
Funds from Operations and Normalized
Funds from Operations (1)
(amounts in thousands, except per share data)
(unaudited) Three Months Ended December
31, Year Ended December 31, 2017
2016 2017 2016 Calculation of Funds
from Operations (FFO) and Normalized FFO available for common
shareholders: Net income (loss) available for common shareholders $
(18,266 ) $ 12,065 $ 11,815 $ 57,843 Add (less): Depreciation and
amortization:
Consolidated properties
47,639 18,440 109,588 73,153 Unconsolidated joint venture
properties 2,185 — 2,185 — FFO attributable to SIR investment
10,297 17,618 58,279 71,227 Loss on impairment of real estate 9,260
— 9,490 — Equity in earnings of SIR (1,313 ) (7,486 ) (21,584 )
(35,381 ) Increase in carrying value of property included in
discontinued operations — — (619 ) — Gain on sale of real estate
— — — (79 ) FFO
available for common shareholders 49,802 40,637 169,154 166,763 Add
(less): Acquisition related costs — 828 — 1,191 (Gain) loss on
early extinguishment of debt — — 1,715 (104 ) Normalized FFO
attributable to SIR investment 9,680 17,684 58,580 71,313 FFO
attributable to SIR investment (10,297 ) (17,618 ) (58,279 )
(71,227 ) Net (gain) loss on issuance of shares by SIR —
2 (72 ) (86 ) Normalized FFO
available for common shareholders $ 49,185 $ 41,533 $
171,098 $ 167,850 Weighted average common
shares outstanding (basic) 99,040 71,079
84,633 71,050 Weighted average
common shares outstanding (diluted) 99,040
71,079 84,653 71,071 Per
common share amounts (basic and diluted): Net income (loss)
available for common shareholders $ (0.18 ) $ 0.17 $ 0.14
$ 0.81 FFO available for common shareholders $ 0.50
$ 0.57 $ 2.00 $ 2.35 Normalized FFO
available for common shareholders $ 0.50 $ 0.58 $
2.02 $ 2.36 Distributions declared per share $ 0.43
$ 0.43 $ 1.72 $ 1.72
(1)
GOV calculates FFO available for common
shareholders and Normalized FFO available for common shareholders
as shown above. FFO available for common shareholders is calculated
on the basis defined by The National Association of Real Estate
Investment Trusts, or Nareit, which is net income (loss) available
for common shareholders calculated in accordance with GAAP, plus
real estate depreciation and amortization of consolidated
properties and its proportionate share of the real estate
depreciation and amortization of unconsolidated joint venture
properties and the difference between FFO attributable to an equity
investment and equity in earnings of an equity investee but
excluding impairment charges on and increases in the carrying value
of real estate assets, any gain or loss on sale of real estate, as
well as certain other adjustments currently not applicable to GOV.
GOV's calculation of Normalized FFO available for common
shareholders differs from Nareit's definition of FFO available for
common shareholders because GOV includes Select Income REIT's, or
SIR's, Normalized FFO attributable to GOV's equity investment in
SIR (net of FFO attributable to GOV's equity investment in SIR),
GOV includes business management incentive fees, if any, only in
the fourth quarter versus the quarter when they are recognized as
expense in accordance with GAAP due to their quarterly volatility
not necessarily being indicative of GOV's core operating
performance and the uncertainty as to whether any such business
management incentive fees will be payable when all contingencies
for determining such fees are known at the end of the calendar year
and GOV excludes acquisition related costs expensed under GAAP,
gains and losses on issuance of shares by SIR and gains and losses
on early extinguishment of debt. GOV considers FFO available for
common shareholders and Normalized FFO available for common
shareholders to be appropriate supplemental measures of operating
performance for a REIT, along with net income (loss), net income
(loss) available for GOV's common shareholders and operating
income. GOV believes that FFO available for common shareholders and
Normalized FFO available for common shareholders provide useful
information to investors because by excluding the effects of
certain historical amounts, such as depreciation expense, FFO
available for common shareholders and Normalized FFO available for
common shareholders may facilitate a comparison of GOV's operating
performance between periods and with other REITs. FFO available for
common shareholders and Normalized FFO available for common
shareholders are among the factors considered by GOV's Board of
Trustees when determining the amount of distributions to GOV's
shareholders. Other factors include, but are not limited to,
requirements to maintain GOV's qualification for taxation as a
REIT, limitations in GOV's credit agreement and public debt
covenants, the availability to GOV of debt and equity capital,
GOV's expectation of its future capital requirements and operating
performance, GOV's receipt of distributions from SIR and GOV's
expected needs for and availability of cash to pay its obligations.
FFO available for common shareholders and Normalized FFO available
for common shareholders do not represent cash generated by
operating activities in accordance with GAAP and should not be
considered alternatives to net income (loss), net income (loss)
available for common shareholders or operating income as indicators
of GOV's operating performance or as measures of GOV's liquidity.
These measures should be considered in conjunction with net income
(loss), net income (loss) available for common shareholders and
operating income as presented in GOV's Consolidated Statements of
Income (Loss). Other real estate companies and REITs may calculate
FFO available for common shareholders and Normalized FFO available
for common shareholders differently than GOV does.
Government Properties Income Trust
Calculation and Reconciliation of Consolidated Property Net
Operating Income (NOI) and
Consolidated Property Cash Basis
NOI (1)
(amounts in thousands) (unaudited)
Three Months Ended December 31, Year Ended
December 31, 2017 2016 2017
2016 Calculation of Consolidated Property NOI and
Consolidated Property Cash Basis NOI (2): Rental
income (3) $ 107,170 $ 66,030 $ 316,532 $ 258,180 Property
operating expenses (41,077 ) (26,091 )
(124,289 ) (102,262 ) Consolidated Property NOI 66,093
39,939 192,243 155,918 Non-cash straight line rent adjustments
included in rental income (3) (2,467 ) (902 ) (5,582 ) (2,691 )
Lease value amortization included in rental income (3) 901 355
2,764 1,457 Non-cash amortization included in property operating
expenses (4) (121 ) (121 ) (484 ) (484
) Consolidated Property Cash Basis NOI $ 64,406 $ 39,271
$ 188,941 $ 154,200
Reconciliation
of Net Income (Loss) Available for Common Shareholders to
Consolidated Property NOI and Consolidated Property Cash Basis
NOI: Net income (loss) available for common shareholders $
(18,266 ) $ 12,065 $ 11,815 $ 57,843 Preferred units of limited
partnership distributions 275 —
275 — Net income (loss) (17,991 ) 12,065
12,090 57,843 Gain on sale of real estate — —
— (79 ) Income (loss) before gain on
sale of real estate (17,991 ) 12,065 12,090 57,764 Income (loss)
from discontinued operations — 160
(173 ) 589 Income (loss) from continuing
operations (17,991 ) 12,225 11,917 58,353 Equity in earnings of
investees (767 ) (7,516 ) (21,571 ) (35,518 ) Income tax expense 36
38 101 101 Net (gain) loss on issuance of shares by SIR — 2 (72 )
(86 ) (Gain) loss on early extinguishment of debt — — 1,715 (104 )
Interest expense 21,807 12,774 65,406 45,060 Interest income (119 )
(95 ) (1,962 ) (158 ) Dividend income (304 ) (304 )
(1,216 ) (971 ) Operating income 2,662 17,124 54,318
66,677 General and administrative 6,532 3,547 18,847 14,897
Acquisition related costs — 828 — 1,191 Loss on impairment of real
estate 9,260 — 9,490 — Depreciation and amortization 47,639
18,440 109,588 73,153
Consolidated Property NOI 66,093 39,939 192,243 155,918
Non-cash amortization included in property operating expenses (4)
(121 ) (121 ) (484 ) (484 ) Lease value amortization included in
rental income (3) 901 355 2,764 1,457 Non-cash straight line rent
adjustments included in rental income (3) (2,467 )
(902 ) (5,582 ) (2,691 ) Consolidated Property Cash
Basis NOI $ 64,406 $ 39,271 $ 188,941 $
154,200
Reconciliation of Consolidated
Property NOI to Same Property NOI (5)(6): Rental
income $ 107,170 $ 66,030 $ 316,532 $ 258,180 Property operating
expenses (41,077 ) (26,091 ) (124,289 )
(102,262 ) Consolidated Property NOI 66,093 39,939 192,243 155,918
Less: NOI of properties not included in same property results
(26,114 ) (331 ) (40,422 ) (4,995 )
Same property NOI $ 39,979 $ 39,608 $ 151,821
$ 150,923
Calculation of Same Property Cash Basis
NOI (5)(6): Same property NOI $ 39,979 $ 39,608 $
151,821 $ 150,923 Add: Lease value amortization included in rental
income (3) 377 354 1,678 1,496 Less: Non-cash straight line rent
adjustments included in rental income (3) (142 ) (879 ) (2,464 )
(2,362 ) Non-cash amortization included in property operating
expenses (4) (121 ) (121 ) (483 ) (483
) Same property Cash Basis NOI $ 40,093 $ 38,962 $
150,552 $ 149,574
(1)
GOV calculates Consolidated Property NOI
and Consolidated Property Cash Basis NOI as shown above. The
calculations of Consolidated Property NOI and Consolidated Property
Cash Basis NOI exclude certain components of net income (loss)
available for common shareholders in order to provide results that
are more closely related to GOV's consolidated property level
results of operations. GOV defines Consolidated Property NOI as
consolidated income from its rental of real estate less its
consolidated property operating expenses. Consolidated Property NOI
excludes amortization of capitalized tenant improvement costs and
leasing commissions that GOV records as depreciation and
amortization. GOV defines Consolidated Property Cash Basis NOI as
Consolidated Property NOI excluding non-cash straight line rent
adjustments, lease value amortization and non-cash amortization
included in other operating expenses. GOV considers Consolidated
Property NOI and Consolidated Property Cash Basis NOI to be
appropriate supplemental measures to net income (loss) available
for common shareholders because they may help both investors and
management to understand the operations of GOV's consolidated
properties. GOV uses Consolidated Property NOI and Consolidated
Property Cash Basis NOI to evaluate individual and company wide
consolidated property level performance, and GOV believes that
Consolidated Property NOI and Consolidated Property Cash Basis NOI
provide useful information to investors regarding GOV's results of
operations because they reflect only those income and expense items
that are generated and incurred at the property level and may
facilitate comparisons of GOV's operating performance between
periods and with other REITs. Consolidated Property NOI and
Consolidated Property Cash Basis NOI do not represent cash
generated by operating activities in accordance with GAAP and
should not be considered alternatives to net income (loss), net
income (loss) available for common shareholders or operating income
as indicators of GOV's operating performance or as measures of its
liquidity. These measures should be considered in conjunction with
net income (loss), net income (loss) available for common
shareholders and operating income as presented in GOV's
Consolidated Statements of Income (Loss). Other real estate
companies and REITs may calculate Consolidated Property NOI and
Consolidated Property Cash Basis NOI differently than GOV does.
(2)
Excludes one property (one building)
classified as discontinued operations which was sold on August 31,
2017.
(3)
GOV reports rental income on a straight
line basis over the terms of the respective leases; as a result,
rental income includes non-cash straight line rent adjustments.
Rental income also includes expense reimbursements, tax
escalations, parking revenues, service income and other fixed and
variable charges paid to GOV by its tenants, as well as the net
effect of non-cash amortization of intangible lease assets and
liabilities.
(4)
GOV recorded a liability for the amount by
which the estimated fair value for accounting purposes exceeded the
price GOV paid for its investment in RMR common stock in June 2015.
A portion of this liability is being amortized on a straight line
basis through December 31, 2035 as a reduction to property
management fees expense, which is included in property operating
expenses.
(5)
For the three months ended December 31,
2017 and 2016, same property NOI and same property Cash Basis NOI
are based on consolidated properties GOV owned as of December 31,
2017 and which it owned continuously since October 1, 2016.
(6)
For the years ended December 31, 2017 and
2016, same property NOI and same property Cash Basis NOI are based
on consolidated properties GOV owned as of December 31, 2017 and
which it owned continuously since January 1, 2016.
Government Properties Income Trust
Consolidated Balance Sheets (amounts in thousands, except
share data) (unaudited) As of December
31, 2017 2016 ASSETS Real estate
properties: Land $ 627,108 $ 267,855 Buildings and improvements
2,348,613 1,620,905 Total real estate
properties, gross 2,975,721 1,888,760 Accumulated depreciation
(341,848 ) (296,804 ) Total real estate properties,
net 2,633,873 1,591,956 Equity investment in Select Income REIT
467,499 487,708 Investment in unconsolidated joint ventures 50,202
— Assets of discontinued operations — 12,541 Acquired real estate
leases, net 351,872 124,848 Cash and cash equivalents 16,569 29,941
Restricted cash 3,111 530 Rents receivable, net 61,429 48,458
Deferred leasing costs, net 22,977 21,079 Other assets, net
96,033 68,005 Total assets $ 3,703,565
$ 2,385,066 LIABILITIES AND SHAREHOLDERS’ EQUITY
Unsecured revolving credit facility $ 570,000 $ 160,000 Unsecured
term loans, net 547,852 547,171 Senior unsecured notes, net 944,140
646,844 Mortgage notes payable, net 183,100 27,837 Liabilities of
discontinued operations — 45 Accounts payable and other liabilities
89,440 54,019 Due to related persons 4,859 3,520 Assumed real
estate lease obligations, net 13,635 10,626
Total liabilities 2,353,026 1,450,062
Commitments and contingencies Preferred units
of limited partnership 20,496 — Shareholders’ equity: Common
shares of beneficial interest, $.01 par value: 150,000,000 and
100,000,000 shares authorized, respectively, 99,145,921 and
71,177,906 shares issued and outstanding, respectively 991 712
Additional paid in capital 1,968,217 1,473,533 Cumulative net
income 108,144 96,329 Cumulative other comprehensive income 60,427
26,957 Cumulative common distributions (807,736 )
(662,527 ) Total shareholders’ equity 1,330,043
935,004 Total liabilities and shareholders’ equity $
3,703,565 $ 2,385,066
A Maryland Real Estate Investment Trust with
transferable shares of beneficial interest listed on the Nasdaq.No
shareholder, Trustee or officer is personally liable for any act or
obligation of the Trust.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180226005451/en/
Government Properties Income TrustChristopher Ranjitkar,
617-219-1410Director, Investor Relations
Government Properties Income (NASDAQ:GOV)
過去 株価チャート
から 6 2024 まで 7 2024
Government Properties Income (NASDAQ:GOV)
過去 株価チャート
から 7 2023 まで 7 2024