Attached files
| file | filename |
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| 8-K - 8-K - Equity Commonwealth | a09-35836_38k.htm |
| EX-99.2 - EX-99.2 - Equity Commonwealth | a09-35836_3ex99d2.htm |
Exhibit 99.1
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400 Centre Street, Newton, MA 02458-2076
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tel: (617) 332-3990 fax: (617) 332-2261
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FOR IMMEDIATE RELEASE |
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Contacts: Timothy A. Bonang, Vice President of Investor Relations, or Carlynn Finn, Manager of Investor Relations (617) 796-8222 www.hrpreit.com |
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HRPT Properties Trust Announces Results for the Periods
Ended December 31, 2009
Newton, MA (February 23, 2010): HRPT Properties Trust (NYSE: HRP) today announced financial results for the quarter and year ended December 31, 2009.
Results for the quarter ended December 31, 2009:
Net (loss) income available for common shareholders was ($22.9) million for the quarter ended December 31, 2009, compared to $50.8 million for the same quarter last year. Net (loss) income available for common shareholders per share, basic and diluted, (EPS) for the quarters ended December 31, 2009 and 2008 was ($0.10) and $0.22, respectively. Net loss for the quarter ended December 31, 2009 includes $31.9 million, or $0.14 per share, of loss on asset impairment. Net income for the quarter ended December 31, 2008 includes $39.5 million, or $0.17 per share, of gain on sale of properties.
Funds from operations (FFO) available for common shareholders for the quarter ended December 31, 2009 was $62.6 million, or $0.28 per share basic and $0.27 per share diluted, respectively, compared to FFO available for common shareholders for the quarter ended December 31, 2008 of $62.2 million, or $0.27 per share basic and diluted.
The weighted average number of basic and diluted common shares outstanding totaled 223,860,241 and 253,052,899, respectively, for the quarter ended December 31, 2009, and 227,704,155 and 256,896,813, respectively, for the quarter ended December 31, 2008.
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.
Results for the year ended December 31, 2009:
Net income available for common shareholders was $114.0 million for the year ended December 31, 2009, compared to $194.0 million for the same period last year. Net income available for common shareholders per share, basic and diluted, (EPS) for the year ended December 31, 2009 and 2008 was $0.51 and $0.86, respectively. Net income for the year ended December 31, 2009 includes $79.1 million, or $0.35 per share, of gain on sale of properties, $20.7 million, or $0.09 per share, of gain on early extinguishment of debt, and $31.9 million, or $0.14 per share, of loss on asset impairment. Net income for the year ended December 31, 2008 includes $137.2 million, or $0.61 per share, of gain on sale of properties.
Funds from operations (FFO) available for common shareholders for the year ended December 31, 2009 was $250.1 million, or $1.12 and $1.08 per share basic and diluted, respectively, compared to FFO available for common shareholders for the year ended December 31, 2008 of $251.7 million, or $1.11 and $1.08 per share basic and diluted, respectively.
The weighted average number of basic and diluted common shares outstanding totaled 224,220,360 and 253,413,018, respectively, for the year ended December 31, 2009, and 226,467,736 and 255,660,394, respectively, for the year ended December 31, 2008.
Occupancy and Leasing Results (excluding properties classified in discontinued operations):
As of December 31, 2009, 87.4% of HRP’s total square feet was leased, compared to 88.0% as of September 30, 2009.
HRP signed lease renewals for 789,000 square feet and new leases for 156,000 square feet during the quarter ended December 31, 2009, for weighted average rental rates that were 9% above prior rents for the same space. Average lease terms for leases signed during the fourth quarter of 2009 were 5.1 years. Commitments for tenant improvement and leasing commission (TI/LC) costs for leases signed during the quarter ended December 31, 2009 totaled $9.89 per square foot on a weighted average basis.
Investing Activities:
During the fourth quarter of 2009, HRP acquired one office property and one industrial property totaling a combined 753,000 square feet of space for $182.1 million, excluding closing costs.
Financing Activities:
During the fourth quarter of 2009, HRP issued $125 million of 7.50% unsecured senior notes due 2019 and closed on a mortgage for $175 million with a 10 year term. Interest under the mortgage has been fixed for the first seven years with a cash flow hedge which sets the rate at approximately 5.66% per year (excluding amortization of costs). HRP used the proceeds from these financings to reduce amounts outstanding under its revolving credit facility.
Conference Call:
On Tuesday, February 23, 2010, at 1:00 p.m. Eastern Time, Adam Portnoy, Managing Trustee, and John Popeo, Chief Financial Officer, will host a conference call to discuss the fourth quarter 2009 results. Following the company’s remarks, there will be a short question and answer period.
The conference call telephone number is (800) 289-0496. Participants calling from outside the United States and Canada should dial (913) 312-0643. No pass code is necessary to access either call. 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 4:00 p.m. Eastern Time on Tuesday, March 2, 2010. To hear the replay, dial (719) 457-0820. The replay pass code is 4509667.
A live audio webcast of the conference call will also be available in a listen only mode on HRP’s web site, which is located at www.hrpreit.com. Participants wanting to access the webcast should visit HRP’s web site about five minutes before the call. The archived webcast will be available for replay on HRP’s web site for about one week after the call. The recording and retransmission in any way of HRP’s fourth quarter and year end conference call is strictly prohibited without the prior written consent of HRP.
Supplemental Data:
A copy of HRP’s Fourth Quarter 2009 Supplemental Operating and Financial Data is available for download at HRP’s web site, www.hrpreit.com.
HRPT Properties Trust is a real estate investment trust, or REIT, which primarily owns office and industrial buildings located throughout the United States. As of December 31, 2009, HRP owned 518 operating properties with 66.8 million square feet, including 17.9 million square feet of leased industrial and commercial lands in Oahu, Hawaii. HRP is headquartered in Newton, Massachusetts.
Please see the pages attached hereto for a more detailed statement of our operating results and financial condition and for an explanation of our calculation of FFO. HRP’s web site is not incorporated as part of this press release.
HRPT Properties Trust
Consolidated Statements of Income and Funds from Operations
(amounts in thousands, except per share data)
(unaudited)
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Quarter Ended December 31, |
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Year Ended December 31, |
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2009 |
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2008 |
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2009 |
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2008 |
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Rental income |
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$ |
213,339 |
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$ |
218,454 |
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$ |
849,722 |
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$ |
835,855 |
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Expenses: |
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Operating expenses |
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89,266 |
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93,922 |
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356,001 |
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347,968 |
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Depreciation and amortization |
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49,522 |
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49,029 |
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195,681 |
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185,693 |
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General and administrative |
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10,508 |
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9,779 |
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39,427 |
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36,828 |
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Acquisition costs (1) |
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2,011 |
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— |
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4,298 |
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— |
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Total expenses |
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151,307 |
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152,730 |
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595,407 |
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570,489 |
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Operating income |
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62,032 |
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65,724 |
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254,315 |
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265,366 |
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Interest income |
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355 |
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539 |
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1,194 |
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1,442 |
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Interest expense (including amortization of debt discounts, premiums and deferred financing fees of $1,680, $1,522, $6,782 and $5,479, respectively) |
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(43,546 |
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(45,616 |
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(173,458 |
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(180,193 |
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Loss on asset impairment |
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(31,882 |
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(2,283 |
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(31,882 |
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(2,283 |
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Gain on early extinguishment of debt |
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— |
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— |
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20,686 |
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— |
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Equity in earnings of equity investments |
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2,728 |
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— |
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6,546 |
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— |
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(Loss) income from continuing operations before income tax expense |
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(10,313 |
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18,364 |
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77,401 |
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84,332 |
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Income tax expense |
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(217 |
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(162 |
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(735 |
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(773 |
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(Loss) income from continuing operations |
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(10,530 |
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18,202 |
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76,666 |
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83,559 |
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Discontinued operations: |
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Income from discontinued operations |
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301 |
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5,712 |
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8,875 |
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23,912 |
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(Loss) gain on sale of properties |
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(24 |
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39,549 |
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79,133 |
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137,174 |
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Net (loss) income |
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(10,253 |
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63,463 |
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164,674 |
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244,645 |
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Preferred distributions |
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(12,667 |
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(12,667 |
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(50,668 |
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(50,668 |
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Net (loss) income available for common shareholders |
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$ |
(22,920 |
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$ |
50,796 |
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$ |
114,006 |
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$ |
193,977 |
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Calculation of Funds from Operations, or FFO (2): |
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Net (loss) income |
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$ |
(10,253 |
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$ |
63,463 |
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$ |
164,674 |
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$ |
244,645 |
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Plus: depreciation and amortization from continuing operations |
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49,522 |
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49,029 |
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195,681 |
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185,693 |
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Plus: depreciation and amortization from discontinued operations |
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— |
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(401 |
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— |
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6,912 |
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Plus: acquisition costs (1) |
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2,011 |
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— |
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4,298 |
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— |
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Plus: FFO from equity investments |
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4,840 |
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— |
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10,625 |
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— |
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Plus: loss on asset impairment |
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31,882 |
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2,283 |
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31,882 |
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2,283 |
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Less: gain on early extinguishment of debt |
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— |
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— |
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(20,686 |
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Less: (loss) gain on sale of properties |
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24 |
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(39,549 |
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(79,133 |
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(137,174 |
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Less: equity in earnings of equity investments |
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(2,728 |
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— |
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(6,546 |
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— |
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FFO |
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75,298 |
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74,825 |
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300,795 |
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302,359 |
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Less: preferred distributions |
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(12,667 |
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(12,667 |
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(50,668 |
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(50,668 |
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FFO available for common shareholders |
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$ |
62,631 |
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$ |
62,158 |
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$ |
250,127 |
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$ |
251,691 |
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Weighted average common shares outstanding — basic |
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223,860 |
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227,704 |
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224,220 |
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226,468 |
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Weighted average common shares outstanding — diluted (3) |
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253,053 |
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256,897 |
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253,413 |
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255,661 |
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Per common share: |
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(Loss) income from continuing operations available for common shareholders — basic and diluted |
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$ |
(0.10 |
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$ |
0.02 |
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$ |
0.12 |
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$ |
0.15 |
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Income from discontinued operations — basic and diluted |
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$ |
— |
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$ |
0.20 |
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$ |
0.39 |
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$ |
0.71 |
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Net (loss) income available for common shareholders — basic and diluted |
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$ |
(0.10 |
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$ |
0.22 |
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$ |
0.51 |
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$ |
0.86 |
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FFO available for common shareholders — basic |
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$ |
0.28 |
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$ |
0.27 |
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$ |
1.12 |
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$ |
1.11 |
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FFO available for common shareholders — diluted |
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$ |
0.27 |
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$ |
0.27 |
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$ |
1.08 |
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$ |
1.08 |
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Common distributions paid |
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$ |
0.12 |
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$ |
0.21 |
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$ |
0.48 |
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$ |
0.84 |
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HRPT Properties Trust
Consolidated Statements of Income and Funds from Operations
(amounts in thousands, except per share data)
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(1) |
Acquisition costs have been expensed under the Business Combinations Topic of The FASB Accounting Standards CodificationTM since January 1, 2009. |
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(2) |
We compute FFO as shown in the calculations above. Our calculations of FFO differ from the National Association of Real Estate Investment Trusts, or NAREIT, definition because we exclude acquisition costs, gain on early extinguishment of debt and loss on early extinguishment of debt unless settled in cash, and loss on asset impairment. 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 depreciation expense and gains or losses on sales of properties, FFO can facilitate a comparison of operating performance between periods and 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. Also, some REITs may calculate FFO differently than us. |
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(3) |
As of December 31, 2009, our 15,180 outstanding series D preferred shares were convertible into 29,193 common shares. The effect of a conversion of our series D convertible preferred shares on income from continuing operations available for common shareholders per share is anti-dilutive to income, but dilutive to FFO for the quarters and years ended December 31, 2009 and 2008. Set forth below is the calculation of diluted net income available for common shareholders, diluted FFO available for common shareholders and diluted weighted average common shares outstanding. |
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Quarter Ended December 31, |
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Year Ended December 31, |
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2009 |
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2008 |
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2009 |
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2008 |
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Net (loss) income available for common shareholders |
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$ |
(22,920 |
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$ |
50,796 |
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$ |
114,006 |
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$ |
193,977 |
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Add - Series D convertible preferred distributions |
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6,167 |
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6,167 |
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24,668 |
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24,668 |
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Net (loss) income available for common shareholders — diluted |
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$ |
(16,753 |
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$ |
56,963 |
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$ |
138,674 |
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$ |
218,645 |
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FFO available for common shareholders |
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$ |
62,631 |
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$ |
62,158 |
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$ |
250,127 |
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$ |
251,691 |
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Add - Series D convertible preferred distributions |
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6,167 |
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6,167 |
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24,668 |
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24,668 |
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FFO available for common shareholders — diluted |
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$ |
68,798 |
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$ |
68,325 |
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$ |
274,795 |
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$ |
276,359 |
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Weighted average common shares outstanding — basic |
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223,860 |
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227,704 |
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224,220 |
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226,468 |
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Effect of dilutive Series D preferred shares |
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29,193 |
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29,193 |
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29,193 |
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29,193 |
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Weighted average common shares outstanding — diluted |
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253,053 |
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256,897 |
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253,413 |
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255,661 |
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HRPT Properties Trust
Consolidated Balance Sheets
(amounts in thousands, except share data)
(unaudited)
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December 31, |
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2009 |
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2008 |
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ASSETS |
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Real estate properties: |
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Land |
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$ |
1,237,842 |
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$ |
1,220,554 |
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Buildings and improvements |
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5,085,839 |
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5,021,703 |
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6,323,681 |
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6,242,257 |
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Accumulated depreciation |
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(884,421 |
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(862,958 |
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5,439,260 |
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5,379,299 |
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Properties held for sale |
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8,263 |
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145,849 |
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Acquired real estate leases, net |
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166,453 |
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164,308 |
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Equity investments |
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158,822 |
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— |
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Cash and cash equivalents |
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18,204 |
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15,518 |
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Restricted cash |
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11,662 |
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10,837 |
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Rents receivable, net of allowance for doubtful accounts of $10,945 and $8,492, respectively |
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194,358 |
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196,839 |
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Other assets, net |
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124,299 |
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103,449 |
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Total assets |
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$ |
6,121,321 |
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$ |
6,016,099 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Revolving credit facility |
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$ |
110,000 |
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$ |
201,000 |
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Senior unsecured debt, net |
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2,258,466 |
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2,241,225 |
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Mortgage notes payable, net |
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624,184 |
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447,693 |
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Other liabilities related to properties held for sale |
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14 |
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3,400 |
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Accounts payable and accrued expenses |
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103,608 |
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99,285 |
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Acquired real estate lease obligations, net |
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47,348 |
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47,839 |
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Distributions payable |
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26,863 |
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— |
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Rent collected in advance |
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30,366 |
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26,537 |
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Security deposits |
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23,097 |
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17,935 |
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Due to affiliates |
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8,309 |
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10,073 |
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Total liabilities |
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3,232,255 |
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3,094,987 |
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Shareholders’ equity: |
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Preferred shares of beneficial interest, $0.01 par value: |
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50,000,000 shares authorized; |
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Series B preferred shares; 8 3/4% cumulative redeemable at par on or after September 12, 2007; 7,000,000 shares issued and outstanding, aggregate liquidation preference $175,000 |
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169,079 |
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169,079 |
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Series C preferred shares; 7 1/8% cumulative redeemable at par on or after February 15, 2011; 6,000,000 shares issued and outstanding, aggregate liquidation preference $150,000 |
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145,015 |
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145,015 |
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Series D preferred shares; 6 1/2% cumulative convertible; 15,180,000 shares issued and outstanding, aggregate liquidation preference $379,500 |
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368,270 |
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368,270 |
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Common shares of beneficial interest, $0.01 par value: |
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350,000,000 shares authorized; 223,860,241 and 227,731,938 shares issued and outstanding, respectively |
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2,239 |
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2,277 |
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Additional paid in capital |
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2,924,166 |
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2,937,986 |
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Cumulative net income |
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2,236,928 |
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2,072,254 |
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Cumulative common distributions |
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(2,576,582 |
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(2,441,841 |
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Cumulative preferred distributions |
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(382,596 |
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(331,928 |
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Accumulated other comprehensive income |
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2,547 |
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— |
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Total shareholders’ equity |
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2,889,066 |
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2,921,112 |
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Total liabilities and shareholders’ equity |
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$ |
6,121,321 |
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$ |
6,016,099 |
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