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EX-99.1 - EXHIBIT 99.1 - OFFICE PROPERTIES INCOME TRUSTgov_033118xexhibitx991.htm
8-K - 8-K - OFFICE PROPERTIES INCOME TRUSTa8-kcoverpage_033118.htm
Fourth Quarter 2016 Supplemental Operating and Financial Data All amounts in this report are unaudited. Government Properties Income Trust Exhibit 99.2Exhibit 99.2Exhibit 99.2


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 TABLE OF CONTENT S 2 TABLE OF CONTENTS PAGE CORPORATE INFORMATION Company Profile 6 Investor Information 7 Research Coverage 8 FINANCIALS Key Financial Data 10 Condensed Consolidated Balance Sheets 11 Condensed Consolidated Statements of Income 12 Condensed Consolidated Statements of Cash Flows 13 Debt Summary 14 Debt Maturity Schedule 15 Leverage Ratios, Coverage Ratios and Public Debt Covenants 16 Summary of Capital Expenditures 17 Property Acquisition and Disposition Information Since January 1, 2018 18 Investment In Unconsolidated Joint Ventures 19 Calculation of Consolidated Property Net Operating Income (NOI) and Consolidated Property Cash Basis NOI 20 Calculation of Same Property NOI and Cash Basis NOI 21 Calculation of EBITDA and Adjusted EBITDA 22 Calculation of Funds from Operations (FFO) and Normalized FFO Available for Common Shareholders 23 Definitions of Certain Non-GAAP Financial Measures 24 PORTFOLIO INFORMATION Portfolio Summary 26 Summary Consolidated and Same Property Results 27 Occupancy and Leasing Summary 28 Leasing Analysis by Tenant Type 29 Tenant List 30 Lease Expiration Schedule 31 EXHIBIT A Consolidated Property Detail 33


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 W ARNING CONCERNING FO RW ARD LOOKING S TA TEMENT S 3 WARNING CONCERNING FORWARD LOOKING STATEMENTS THIS PRESENTATION OF SUPPLEMENTAL OPERATING AND FINANCIAL DATA 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 WE USE WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE”, “WILL”, “MAY” AND NEGATIVES OR DERIVATIVES OF THESE OR SIMILAR EXPRESSIONS, WE ARE MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON OUR PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. FORWARD LOOKING STATEMENTS IN THIS REPORT RELATE TO VARIOUS ASPECTS OF OUR BUSINESS, INCLUDING: • OUR SALES AND ACQUISITIONS OF PROPERTIES, • OUR ABILITY TO COMPETE FOR ACQUISITIONS AND TENANCIES EFFECTIVELY, • THE LIKELIHOOD THAT OUR TENANTS WILL PAY RENT OR BE NEGATIVELY AFFECTED BY CYCLICAL ECONOMIC CONDITIONS OR GOVERNMENT BUDGET CONSTRAINTS, • THE LIKELIHOOD THAT OUR TENANTS WILL RENEW OR EXTEND THEIR LEASES AND NOT EXERCISE EARLY TERMINATION OPTIONS PURSUANT TO THEIR LEASES OR THAT WE WILL OBTAIN REPLACEMENT TENANTS, • THE LIKELIHOOD THAT OUR RENTS WILL INCREASE WHEN WE RENEW OR EXTEND OUR LEASES OR ENTER NEW LEASES, • OUR ABILITY TO PAY DISTRIBUTIONS TO OUR SHAREHOLDERS AND TO SUSTAIN THE AMOUNT OF SUCH DISTRIBUTIONS, • OUR EXPECTATION THAT WE BENEFIT FROM OUR OWNERSHIP INTEREST IN SELECT INCOME REIT, OR SIR, • OUR POLICIES AND PLANS REGARDING INVESTMENTS, FINANCINGS AND DISPOSITIONS, • THE FUTURE AVAILABILITY OF BORROWINGS UNDER OUR REVOLVING CREDIT FACILITY, • OUR EXPECTATION THAT THERE WILL BE OPPORTUNITIES FOR US TO ACQUIRE, AND THAT WE WILL ACQUIRE, ADDITIONAL PROPERTIES IN THE METROPOLITAN WASHINGTON, D.C. MARKET AREA OR ELSEWHERE, INCLUDING PROPERTIES THAT ARE MAJORITY LEASED TO GOVERNMENT TENANTS, GOVERNMENT CONTRACTOR TENANTS OR OTHER PRIVATE TENANTS, • OUR EXPECTATIONS REGARDING DEMAND FOR LEASED SPACE BY GOVERNMENT TENANTS, • OUR ABILITY TO RAISE DEBT OR EQUITY CAPITAL, • OUR ABILITY TO PAY INTEREST ON AND PRINCIPAL OF OUR DEBT, • OUR ABILITY TO APPROPRIATELY BALANCE OUR USE OF DEBT AND EQUITY CAPITAL, • OUR CREDIT RATINGS, • OUR EXPECTED BENEFITS FROM OUR ACQUISITION OF FIRST POTOMAC REALTY TRUST, OR FPO, AND SUCH ACQUISITION, THE FPO TRANSACTION, • OUR EXPECTATION THAT WE BENEFIT FROM OUR OWNERSHIP INTEREST IN AND OTHER RELATIONSHIPS WITH THE RMR GROUP INC., OR RMR INC., • OUR EXPECTATION THAT WE BENEFIT FROM OUR OWNERSHIP INTEREST IN AND OTHER RELATIONSHIPS WITH AFFILIATES INSURANCE COMPANY, OR AIC, AND FROM OUR PARTICIPATION IN INSURANCE PROGRAMS ARRANGED BY AIC, • THE CREDIT QUALITIES OF OUR TENANTS, • OUR QUALIFICATION FOR TAXATION AS A REAL ESTATE INVESTMENT TRUST, OR REIT, AND • OTHER MATTERS. OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY OUR FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FACTORS THAT COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR FORWARD LOOKING STATEMENTS AND UPON OUR BUSINESS, RESULTS OF OPERATIONS, FINANCIAL CONDITION, FUNDS FROM OPERATIONS, OR FFO, AVAILABLE FOR COMMON SHAREHOLDERS, NORMALIZED FUNDS FROM OPERATIONS, OR NORMALIZED FFO, AVAILABLE FOR COMMON SHAREHOLDERS, CONSOLIDATED PROPERTY NET OPERATING INCOME, OR NOI, CONSOLIDATED PROPERTY CASH BASIS NOI, EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION, OR EBITDA, EBITDA AS ADJUSTED, OR ADJUSTED EBITDA, CASH FLOWS, LIQUIDITY AND PROSPECTS INCLUDE, BUT ARE NOT LIMITED TO: • THE IMPACT OF CONDITIONS AND CHANGES IN THE ECONOMY AND THE CAPITAL MARKETS ON US AND OUR TENANTS, • COMPETITION WITHIN THE REAL ESTATE INDUSTRY, PARTICULARLY IN THOSE MARKETS IN WHICH OUR PROPERTIES ARE LOCATED AND WITH RESPECT TO GOVERNMENT TENANCIES, • THE IMPACT OF CHANGES IN THE REAL ESTATE NEEDS AND FINANCIAL CONDITIONS OF GOVERNMENT TENANTS, • COMPLIANCE WITH, AND CHANGES TO, FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS, ACCOUNTING RULES, TAX LAWS AND SIMILAR MATTERS, • ACTUAL AND POTENTIAL CONFLICTS OF INTEREST WITH OUR RELATED PARTIES, INCLUDING OUR MANAGING TRUSTEES, THE RMR GROUP LLC, OR RMR LLC, RMR INC., SIR, AIC AND OTHERS AFFILIATED WITH THEM, • LIMITATIONS IMPOSED ON OUR BUSINESS AND OUR ABILITY TO SATISFY COMPLEX RULES IN ORDER FOR US TO QUALIFY FOR TAXATION AS A REIT FOR U.S. FEDERAL INCOME TAX PURPOSES, AND • ACTS OF TERRORISM, OUTBREAKS OF SO CALLED PANDEMICS OR OTHER MANMADE OR NATURAL DISASTERS BEYOND OUR CONTROL.


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018W ARNING CONCERNING FO RW ARD LOOKING S TA TEMENTS (continued ) 4 FOR EXAMPLE: • OUR ABILITY TO MAKE FUTURE DISTRIBUTIONS TO OUR SHAREHOLDERS AND TO MAKE PAYMENTS OF PRINCIPAL AND INTEREST ON OUR INDEBTEDNESS DEPENDS UPON A NUMBER OF FACTORS, INCLUDING OUR FUTURE EARNINGS, THE CAPITAL COSTS WE INCUR TO LEASE OUR PROPERTIES, OUR WORKING CAPITAL REQUIREMENTS AND OUR RECEIPT OF DISTRIBUTIONS FROM SIR. WE MAY BE UNABLE TO PAY OUR DEBT OBLIGATIONS OR TO MAINTAIN OUR CURRENT RATE OF DISTRIBUTIONS ON OUR COMMON SHARES AND FUTURE DISTRIBUTIONS MAY BE REDUCED OR ELIMINATED, • OUR ABILITY TO GROW OUR BUSINESS AND INCREASE OUR DISTRIBUTIONS DEPENDS IN LARGE PART UPON OUR ABILITY TO BUY PROPERTIES AND LEASE THEM FOR RENTS, LESS THEIR PROPERTY OPERATING COSTS, THAT EXCEED OUR CAPITAL COSTS. WE MAY BE UNABLE TO IDENTIFY PROPERTIES THAT WE WANT TO ACQUIRE OR TO NEGOTIATE ACCEPTABLE PURCHASE PRICES, ACQUISITION FINANCING OR LEASE TERMS FOR NEW PROPERTIES, • AS PART OF OUR LONG TERM FINANCING PLANS TO REDUCE OUR LEVERAGE, WE EXPECT TO DISPOSE OF CERTAIN OF OUR PROPERTIES. CURRENTLY, WE ARE MARKETING OR PLAN TO MARKET FOR SALE 24 PROPERTIES. WE CANNOT BE SURE WE WILL SELL ANY OF THESE PROPERTIES OR WHAT THE TERMS OF ANY SALE MAY BE. WE MAY SELL SOME OR ALL OF THESE PROPERTIES AT PRICES THAT ARE LESS THAN OUR CARRYING VALUES AND WE MAY OTHERWISE INCUR LOSSES AS A RESULT OF CONSIDERING AND PURSUING THESE SALES. FURTHER, WE MAY ELECT TO CHANGE WHICH PROPERTIES WE MAY TO SEEK TO SELL, WHICH COULD RESULT IN DIFFERENT PROPERTIES AND FEWER OR GREATER NUMBER OF PROPERTIES BEING SOLD OR MARKETED FOR SALE, • SOME OF OUR TENANTS MAY NOT RENEW EXPIRING LEASES, AND WE MAY BE UNABLE TO OBTAIN NEW TENANTS TO MAINTAIN OR INCREASE THE HISTORICAL OCCUPANCY RATES OF, OR RENTS FROM, OUR PROPERTIES, • SOME GOVERNMENT TENANTS MAY EXERCISE THEIR RIGHTS TO VACATE THEIR SPACE BEFORE THE STATED EXPIRATIONS OF THEIR LEASES, AND WE MAY BE UNABLE TO OBTAIN NEW TENANTS TO MAINTAIN THE HISTORICAL OCCUPANCY RATES OF, OR RENTS FROM, OUR PROPERTIES, • RENTS THAT WE CAN CHARGE AT OUR PROPERTIES MAY DECLINE BECAUSE OF CHANGING MARKET CONDITIONS OR OTHERWISE, • CONTINGENCIES IN OUR ACQUISITION AND SALE AGREEMENTS MAY NOT BE SATISFIED AND OUR PENDING ACQUISITIONS AND SALES MAY NOT OCCUR, MAY BE DELAYED OR THE TERMS OF SUCH TRANSACTIONS MAY CHANGE, • WE INTEND TO CONDUCT OUR BUSINESS ACTIVITIES IN A MANNER THAT WILL AFFORD US REASONABLE ACCESS TO CAPITAL FOR INVESTMENT AND FINANCING ACTIVITIES. HOWEVER, WE MAY NOT SUCCEED IN THIS REGARD AND WE MAY NOT HAVE REASONABLE ACCESS TO CAPITAL, • CONTINUED AVAILABILITY OF BORROWINGS UNDER OUR REVOLVING CREDIT FACILITY IS SUBJECT TO OUR SATISFYING CERTAIN FINANCIAL COVENANTS AND OTHER CREDIT FACILITY CONDITIONS THAT WE MAY BE UNABLE TO SATISFY, • ACTUAL COSTS UNDER OUR REVOLVING CREDIT FACILITY OR OTHER FLOATING RATE DEBT WILL BE HIGHER THAN LIBOR PLUS A PREMIUM BECAUSE OF FEES AND EXPENSES ASSOCIATED WITH SUCH DEBT, • THE INTEREST RATES PAYABLE UNDER OUR FLOATING RATE DEBT OBLIGATIONS DEPEND UPON OUR CREDIT RATINGS. WE CURRENTLY HAVE A NEGATIVE DEBT RATINGS OUTLOOK BY BOTH MOODY'S INVESTORS SERVICE AND STANDARD & POOR'S RATINGS SERVICES WHICH MAY IMPLY THAT OUR CREDIT RATINGS MAY BE DOWNGRADED. IF OUR CREDIT RATINGS ARE DOWNGRADED, OUR BORROWING COSTS WILL INCREASE, • OUR ABILITY TO ACCESS DEBT CAPITAL AND THE COST OF OUR DEBT CAPITAL WILL DEPEND IN PART ON OUR CREDIT RATINGS. IF OUR CREDIT RATINGS ARE DOWNGRADED, WE MAY NOT BE ABLE TO ACCESS DEBT CAPITAL OR THE DEBT CAPITAL WE CAN ACCESS MAY BE EXPENSIVE, • WE MAY BE UNABLE TO REPAY OUR DEBT OBLIGATIONS WHEN THEY BECOME DUE, • THE MAXIMUM BORROWING AVAILABILITY UNDER OUR REVOLVING CREDIT FACILITY AND TERM LOANS MAY BE INCREASED TO UP TO $2.5 BILLION ON A COMBINED BASIS IN CERTAIN CIRCUMSTANCES; HOWEVER, INCREASING THE MAXIMUM BORROWING AVAILABILITY UNDER OUR REVOLVING CREDIT FACILITY AND TERM LOANS IS SUBJECT TO OUR OBTAINING ADDITIONAL COMMITMENTS FROM LENDERS, WHICH MAY NOT OCCUR, • WE HAVE THE OPTION TO EXTEND THE MATURITY DATE OF OUR REVOLVING CREDIT FACILITY UPON PAYMENT OF A FEE AND MEETING OTHER CONDITIONS; HOWEVER, THE APPLICABLE CONDITIONS MAY NOT BE MET, • THE BUSINESS AND PROPERTY MANAGEMENT AGREEMENTS BETWEEN US AND RMR LLC HAVE CONTINUING 20 YEAR TERMS.  HOWEVER, THOSE AGREEMENTS PERMIT EARLY TERMINATION IN CERTAIN CIRCUMSTANCES. ACCORDINGLY, WE CANNOT BE SURE THAT THESE AGREEMENTS WILL REMAIN IN EFFECT FOR CONTINUING 20 YEAR TERMS, • WE BELIEVE THAT OUR RELATIONSHIPS WITH OUR RELATED PARTIES, INCLUDING RMR LLC, RMR INC., SIR, AIC AND OTHERS AFFILIATED WITH THEM MAY BENEFIT US AND PROVIDE US WITH COMPETITIVE ADVANTAGES IN OPERATING AND GROWING OUR BUSINESS.  HOWEVER, THE ADVANTAGES WE BELIEVE WE MAY REALIZE FROM THESE RELATIONSHIPS MAY NOT MATERIALIZE, • WE MAY FAIL TO EXECUTE SUCCESSFULLY ON OUR EXPANDED BUSINESS STRATEGY OR INCREASED SCALE OF OUR BUSINESS RESULTING FROM THE FPO TRANSACTION AND THEREFORE MAY NOT REALIZE THE BENEFITS WE EXPECT FROM THE FPO TRANSACTION, • SIR MAY REDUCE THE AMOUNT OF ITS DISTRIBUTIONS TO ITS SHAREHOLDERS, INCLUDING US, • RMR INC. MAY REDUCE THE AMOUNT OF DISTRIBUTIONS TO ITS SHAREHOLDERS, INCLUDING US, • WE MAY BE UNABLE TO SELL OUR SIR COMMON SHARES FOR AN AMOUNT EQUAL TO OUR CARRYING VALUE OF THOSE SHARES AND ANY SUCH SALE MAY BE AT A DISCOUNT TO MARKET PRICE BECAUSE OF THE LARGE SIZE OF OUR SIR HOLDINGS OR OTHERWISE; WE MAY REALIZE A LOSS ON OUR INVESTMENT IN OUR SIR SHARES, AND • AS OF MARCH 31, 2018, WE HAD ESTIMATED UNSPENT LEASING RELATED OBLIGATIONS OF $32.8 MILLION. OUR UNSPENT LEASING RELATED OBLIGATIONS MAY COST MORE OR LESS AND MAY TAKE LONGER TO COMPLETE THAN WE CURRENTLY EXPECT, AND WE MAY INCUR INCREASED AMOUNTS FOR THESE AND SIMILAR PURPOSES IN THE FUTURE. CURRENTLY UNEXPECTED RESULTS COULD OCCUR DUE TO MANY DIFFERENT CIRCUMSTANCES, SOME OF WHICH ARE BEYOND OUR CONTROL, SUCH AS CHANGES IN OUR TENANTS’ NEEDS FOR LEASED SPACE, ACTS OF TERRORISM, NATURAL DISASTERS OR CHANGES IN CAPITAL MARKETS OR THE ECONOMY GENERALLY. THE INFORMATION CONTAINED IN OUR FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER THE CAPTION "RISK FACTORS" IN OUR PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE DIFFERENCES FROM OUR FORWARD LOOKING STATEMENTS. OUR FILINGS WITH THE SEC ARE AVAILABLE ON THE SEC’S 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.


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018CORPORATE INFORMATION 5 One Memphis Place, Memphis, TN Square Feet: 204,694 Primary Agency Occupant: U.S. Courts


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 COM PAN Y PROFIL E 6 COMPANY PROFILE The Company: Government Properties Income Trust, or GOV, we or us, is a real estate investment trust, or REIT, which primarily owns properties located throughout the United States that are majority leased to government tenants and office properties in the metropolitan Washington, D.C. market area that are leased to government and private sector tenants. The majority of our properties are office buildings. As of March 31, 2018, we also own 24.9 million common shares, or approximately 27.8% of the then outstanding common shares, of Select Income REIT (Nasdaq: SIR), or SIR, a REIT which owns properties that are primarily net leased to single tenants. We have been investment grade rated since 2010, and we are included in the S&P Small Cap 600 Index, the Russell 2000® index and the MSCI US REIT index. Management: GOV is managed by The RMR Group LLC, the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR). RMR is an alternative asset management company that was founded in 1986 to manage real estate companies and related businesses. RMR primarily provides management services to five publicly owned real estate investment trusts, or REITs, and three real estate related operating businesses. In addition to managing GOV, RMR manages Hospitality Properties Trust, a REIT that owns hotels and travel centers, Senior Housing Properties Trust, a REIT that primarily owns healthcare, senior living and medical office buildings, Select Income REIT, a REIT that owns properties that are primarily net leased to single tenants, and Industrial Logistics Properties Trust, a REIT that owns and leases industrial and logistics properties. RMR also provides management services to TravelCenters of America LLC, a publicly traded operator of travel centers along the U.S. Interstate Highway System, convenience stores and restaurants, Five Star Senior Living Inc., a publicly traded operator of senior living communities, and Sonesta International Hotels Corporation, a privately owned franchisor and operator of hotels and cruise ships. RMR also manages publicly traded securities of real estate companies, a publicly traded mortgage REIT and private commercial real estate debt funds through wholly owned SEC registered investment advisory subsidiaries. As of March 31, 2018, RMR had $30.0 billion of real estate assets under management and the combined RMR managed companies had approximately $11.0 billion of annual revenues, over 1,700 properties and approximately 52,000 employees. We believe that being managed by RMR is a competitive advantage for GOV because of RMR’s depth of management and experience in the real estate industry. We also believe RMR provides management services to us at costs that are lower than we would have to pay for similar quality services. Corporate Headquarters: Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458-1634 (t) (617) 219-1440 (f) (617) 219-1441 Stock Exchange Listing: Nasdaq Trading Symbols: Common Shares: GOV Senior Unsecured Notes due 2046: GOVNI Issuer Ratings: Moody’s: Baa3 Standard & Poor’s: BBB- (1) Excludes two properties (three buildings) owned by unconsolidated joint ventures. (2) See page 23 for the calculation of Normalized FFO available for common shareholders and a reconciliation of net income available for common shareholders determined in accordance with U.S. generally accepted accounting principles, or GAAP, to this amount. Total consolidated properties (1) 107 (166 buildings) Total sq. ft. (1) 17,332 Percent leased (1) 94.4% Q1 2018 total rental income $ 108,717 Q1 2018 net income available for common shareholders $ 6,287 Q1 2018 Normalized FFO available for common shareholders (2) $ 54,065 Key data (as of 3/31/2018): (dollars and sq. ft. in 000s)


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 INVES TOR INFORM ATIO N 7 INVESTOR INFORMATION Board of Trustees Barbara D. Gilmore John L. Harrington Elena Poptodorova Independent Trustee Independent Trustee Independent Trustee Jeffrey P. Somers Mark L. Kleifges Adam D. Portnoy Independent Trustee Managing Trustee Managing Trustee Senior Management David M. Blackman Mark L. Kleifges President and Chief Operating Officer Chief Financial Officer and Treasurer Contact Information Investor Relations Inquiries Government Properties Income Trust Financial inquiries should be directed to Mark L. Kleifges, Two Newton Place Chief Financial Officer and Treasurer, at (617) 219-1440 255 Washington Street, Suite 300 or mkleifges@rmrgroup.com. Newton, MA 02458-1634 (t) (617) 219-1440 Investor and media inquiries should be directed to (f) (617) 796-8267 Christopher Ranjitkar, Director, Investor Relations, at (617) 219-1473 or (e-mail) info@govreit.com cranjitkar@rmrgroup.com. (website) www.govreit.com


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 RESEARCH COVERAG E 8 RESEARCH COVERAGE Equity Research Coverage Rating Agencies Moody’s Investors Service Standard & Poor’s Lori Marks Sarah Sherman Lori.marks@moodys.com sarah.sherman@standardandpoors.com (212) 553-1653 (212) 438-3550 GOV is followed by the analysts and its credit is rated by the rating agencies listed above. Please note that any opinions, estimates or forecasts regarding GOV’s performance made by these analysts or agencies do not represent opinions, forecasts or predictions of GOV or its management. GOV does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations provided by any of these analysts or agencies. Bank of America Merrill Lynch Research D.A. Davidson & Co. James Feldman James Lykins James.Feldman@baml.com jlykins@dadco.com (646) 855-5808 503-603-3041 FBR & Co. Jeffries & Company, Inc. Bryan Maher Jonathan Petersen bmaher@fbr.com jpetersen@jefferies.com (646) 885-5423 (212) 284-1705 JMP Securities Morgan Stanley Mitch Germain Sumit Sharma mgermain@jmpsecurities.com Sumit.Sharma@morganstanley.com (212) 906-3546 (212) 761-7567 RBC Capital Markets Mike Carroll Michael.Carroll@rbccm.com (440) 715-2649


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 FINANCIALS 9960 Maryland Drive, Richmond, VA Square Feet: 173,932 Agency Occupant: The Commonwealth of Virginia 9 625 Indiana Avenue, Washington, DC Square Feet: 160,897 Primary Agency Occupant: U.S. Courts 9


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 KE Y FINANCIA L D AT A 10 KEY FINANCIAL DATA (dollar and share amounts in thousands, except per share data) (1) Total gross assets is total assets plus accumulated depreciation. (2) See page 20 for the calculation of Consolidated Property NOI and a reconciliation of net income (loss) available for common shareholders determined in accordance with GAAP to that amount. (3) See page 22 for the calculation of Adjusted EBITDA and a reconciliation of net income (loss) determined in accordance with GAAP to that amount. (4) See page 23 for the calculation of FFO available for common shareholders and Normalized FFO available for common shareholders and a reconciliation of net income (loss) available for common shareholders determined in accordance with GAAP to those amounts. (5) Annualized distribution yield is the annualized distribution paid during the period divided by the closing price of our common shares at the end of the period. As of and for the Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Selected Balance Sheet Data: Total gross assets (1) $ 4,008,953 $ 4,045,413 $ 3,868,036 $ 2,685,114 $ 2,685,291 Total assets $ 3,655,624 $ 3,703,565 $ 3,536,967 $ 2,365,109 $ 2,377,050 Total liabilities $ 2,340,770 $ 2,353,026 $ 2,159,440 $ 1,456,430 $ 1,448,480 Total shareholders' equity $ 1,294,358 $ 1,330,043 $ 1,377,527 $ 908,679 $ 928,570 Selected Income Statement Data: Rental income $ 108,717 $ 107,170 $ 70,179 $ 69,887 $ 69,296 Net income (loss) available for common shareholders $ 6,287 $ (18,266) $ 10,989 $ 11,677 $ 7,415 Consolidated Property NOI (2) $ 66,226 $ 66,093 $ 41,042 $ 42,587 $ 42,521 Adjusted EBITDA (3) $ 73,439 $ 73,458 $ 51,916 $ 52,160 $ 51,893 FFO available for common shareholders (4) $ 66,991 $ 49,802 $ 40,357 $ 41,282 $ 37,713 Normalized FFO available for common shareholders (4) $ 54,065 $ 49,185 $ 39,602 $ 42,412 $ 39,899 Per Share Data (basic and diluted): Net income (loss) available for common shareholders $ 0.06 $ (0.18) $ 0.11 $ 0.16 $ 0.10 FFO available for common shareholders (4) $ 0.68 $ 0.50 $ 0.42 $ 0.58 $ 0.53 Normalized FFO available for common shareholders (4) $ 0.55 $ 0.50 $ 0.41 $ 0.60 $ 0.56 Dividends: Annualized distributions paid per share during period $ 1.72 $ 1.72 $ 1.72 $ 1.72 $ 1.72 Annualized distribution yield (at end of period) (5) 12.6% 9.3% 9.2% 9.4% 8.2% Normalized FFO available for common shareholders payout ratio (4) 78.2% 86.0% 104.9% 71.7% 76.8%


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 CONDENSED CONSOLID ATED BALANCE SHEET S 11 CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share data) March 31, December 31, 2018 2017 ASSETS Real estate properties: Land $ 623,610 $ 627,108 Buildings and improvements 2,313,123 2,348,613 Total real estate properties, gross 2,936,733 2,975,721 Accumulated depreciation (353,329) (341,848) Total real estate properties, net 2,583,404 2,633,873 Equity investment in Select Income REIT 465,131 467,499 Investment in unconsolidated joint ventures 48,758 50,202 Assets of properties held for sale 18,080 — Acquired real estate leases, net 323,710 351,872 Cash and cash equivalents 17,380 16,569 Restricted cash 4,766 3,111 Rents receivable, net 65,539 61,429 Deferred leasing costs, net 22,622 22,977 Other assets, net 106,234 96,033 Total assets $ 3,655,624 $ 3,703,565 LIABILITIES AND SHAREHOLDERS’ EQUITY Unsecured revolving credit facility $ 570,000 $ 570,000 Unsecured term loans, net 548,022 547,852 Senior unsecured notes, net 944,743 944,140 Mortgage notes payable, net 182,083 183,100 Liabilities of properties held for sale 275 — Accounts payable and other liabilities 74,623 89,440 Due to related persons 8,544 4,859 Assumed real estate lease obligations, net 12,480 13,635 Total liabilities 2,340,770 2,353,026 Commitments and contingencies Preferred units of limited partnership 20,496 20,496 Shareholders’ equity: Common shares of beneficial interest, $.01 par value: 150,000,000 shares authorized, 99,145,304 and 99,145,921 shares issued and outstanding, respectively 991 991 Additional paid in capital 1,968,205 1,968,217 Cumulative net income 174,585 108,144 Cumulative other comprehensive income 945 60,427 Cumulative common distributions (850,368) (807,736) Total shareholders’ equity 1,294,358 1,330,043 Total liabilities and shareholders’ equity $ 3,655,624 $ 3,703,565


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 CONDENSED CONSOLID ATED S TA TEMENTS OF INCOME 12 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars and share amounts in thousands, except per share data) (1) General and administrative expenses include estimated business management incentive fee expense of $2,887 for the three months ended March 31, 2018. (2) Unrealized gain on equity securities represents the adjustment required to adjust the carrying value of our investment in The RMR Group Inc. common shares to its fair value as of March 31, 2018 in accordance with new GAAP standards effective January 1, 2018. (3) We report rental income on a straight line basis over the terms of the respective leases; accordingly, 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 us by our tenants, as well as the net effect of non-cash amortization of intangible lease assets and liabilities. (4) We recorded a liability for the amount by which the estimated fair value for accounting purposes exceeded the price we paid for our investment in RMR Inc. common stock in June 2015. This liability is being amortized on a straight line basis through December 31, 2035 as an allocated reduction to business management fees and property management fees expense, which are included in general and administrative and other operating expenses, respectively. Three Months Ended March 31, 2018 2017 Rental income  $ 108,717 $ 69,296 Expenses: Real estate taxes 12,964 8,177 Utility expenses 6,690 4,606 Other operating expenses 22,837 13,992 Depreciation and amortization 44,204 20,505 Loss on impairment of real estate 6,116 — General and administrative (1) 9,606 3,962 Total expenses 102,417 51,242 Operating income 6,300 18,054 Dividend income 304 304 Unrealized gain on equity securities (2) 12,931 — Interest income 116 61 Interest expense (including net amortization of debt premiums and discounts and debt issuance costs of $965 and $807, respectively) (22,766) (13,581) Income (loss) from continuing operations before income taxes and equity in earnings of investees (3,115) 4,838 Income tax expense (32) (18) Equity in earnings of investees 9,712 2,739 Income from continuing operations 6,565 7,559 Loss from discontinued operations — (144) Net income 6,565 7,415 Preferred units of limited partnership distributions (278) — Net income available for common shareholders $ 6,287 $ 7,415 Weighted average common shares outstanding (basic) 99,041 71,079 Weighted average common shares outstanding (diluted) 99,049 71,094 Per common share amounts (basic and diluted): Income from continuing operations $ 0.07 $ 0.11 Loss from discontinued operations $ — $ — Net income available for common shareholders $ 0.06 $ 0.10 Additional Data: General and administrative expenses / rental income 8.84% 5.72% General and administrative expenses / total assets (at end of period) 0.26% 0.17% Non-cash straight line rent adjustments (3) $ 3,091 $ 1,300 Lease value amortization included in rental income (3) $ (835) $ (627) Non-cash amortization included in other operating expenses (4) $ 121 $ 121 Non-cash amortization included in general and administrative expenses (4) $ 151 $ 151


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 CONDENSED CONSOLID ATED S TA TEMENTS OF CASH FLOW S 13 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (dollar amounts in thousands) For the Three Months Ended March 31, 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 6,565 $ 7,415 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 17,172 11,576 Net amortization of debt premiums and discounts and debt issuance costs 965 807 Straight line rental income (3,091) (1,300) Amortization of acquired real estate leases 26,790 8,672 Amortization of deferred leasing costs 1,120 849 Other non-cash (income) expenses, net (334) 5 Loss on impairment of real estate 6,116 — Unrealized gain on equity securities (12,931) — Equity in earnings (losses) of investees, net (9,712) (2,739) Distributions of earnings from Select Income REIT 10,289 2,611 Change in assets and liabilities: Deferred leasing costs (2,091) (1,075) Rents receivable (1,893) (974) Other assets 2,296 2,215 Accounts payable and accrued expenses (9,679) (1,989) Due to related persons 3,685 152 Net cash provided by operating activities 35,267 26,225 CASH FLOWS FROM INVESTING ACTIVITIES: Real estate acquisitions and deposits — (12,641) Real estate improvements (11,020) (9,656) Distributions in excess of earnings from Select Income REIT 2,419 10,097 Distributions in excess of earnings from unconsolidated joint ventures 823 — Proceeds from sale of properties, net 18,797 — Net cash provided by (used in) investing activities 11,019 (12,200) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of mortgage notes payable (899) (379) Borrowings on unsecured revolving credit facility 25,000 30,000 Repayments on unsecured revolving credit facility (25,000) (30,000) Repurchase of common shares (11) — Preferred units of limited partnership distributions (278) — Distributions to common shareholders (42,632) (30,606) Net cash used in financing activities (43,820) (30,985) Increase (decrease) in cash and cash equivalents and restricted cash 2,466 (16,960) Cash and cash equivalents and restricted cash at beginning of period 19,680 30,471 Cash and cash equivalents and restricted cash at end of period $ 22,146 $ 13,511 Supplemental cash flow information: Interest paid $ 27,733 $ 15,854 Income taxes paid $ — $ — Supplemental disclosure of cash and cash equivalents and restricted cash The following table provides a reconciliation of cash and cash equivalents and restricted cash amounts reported within the condensed consolidated balance sheets to the total amount reported in the condensed consolidated statements of cash flows: As of March 31, 2018 2017 Cash and cash equivalents $ 17,380 $ 12,808 Restricted cash 4,766 703 Total cash and cash equivalents and restricted cash reported in the statements of cash flows $ 22,146 $ 13,511


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 DEBT SUMMA RY 14 DEBT SUMMARY (1) (dollars in thousands) As of March 31, 2018 (1) The data presented exclude two mortgage notes with an aggregate principal balance of $82,000, which are secured by two properties (three buildings) owned by two unconsolidated joint ventures in which we own 50% and 51% interests. See page 19 for additional information regarding these unconsolidated joint ventures and the related mortgage notes. (2) Reflects the interest rate stated in, or determined pursuant to, the contract terms. (3) Includes the effect of interest rate protection and mark to market accounting for certain mortgages and premiums or discounts on senior unsecured notes. Excludes upfront transaction costs. (4) Principal balances exclude unamortized premiums, discounts and issuance costs related to these debts. The carrying value of our total consolidated debt of $2,244,848 as of March 31, 2018 is net of unamortized premiums and discounts and certain issuance costs totaling $17,400. (5) We are required to pay interest on borrowings under our $750,000 revolving credit facility at an annual rate of LIBOR plus a premium of 125 basis points. We also pay a facility fee of 25 basis points per annum on the total amount of lending commitments. Both the interest rate premium and facility fee are subject to adjustment based upon changes to our credit ratings. The coupon rate and interest rate listed above are as of March 31, 2018. Subject to meeting certain conditions and payment of a fee, we may extend the maturity date to January 31, 2020. (6) We are required to pay interest on the amounts outstanding under our $300,000 term loan at an annual rate of LIBOR plus a premium of 140 basis points, subject to adjustment based on changes to our credit ratings. The coupon rate and interest rate listed above are as of March 31, 2018. Our $300,000 term loan is prepayable without penalty at any time. (7) We are required to pay interest on the amounts outstanding under our $250,000 term loan at an annual rate of LIBOR plus a premium of 180 basis points, subject to adjustment based on changes to our credit ratings. The coupon rate and interest rate listed above are as of March 31, 2018. Our $250,000 term loan is prepayable without penalty at any time. (8) The maximum aggregate borrowing availability under the credit agreement governing our revolving credit facility and term loans may be increased to up to $2,500,000 on a combined basis in certain circumstances. Coupon Interest Principal Maturity Due at Years to Rate (2) Rate (3) Balance (4) Date Maturity Maturity Unsecured Floating Rate Debt: $750,000 unsecured revolving credit facility (5) (8) 2.981% 2.981% $ 570,000 1/31/2019 $ 570,000 0.8 $300,000 unsecured term loan (6) (8) 3.277% 3.277% 300,000 3/31/2020 300,000 2.0 $250,000 unsecured term loan (7) (8) 3.677% 3.677% 250,000 3/31/2022 250,000 4.0 Subtotal / weighted average 3.216% 3.216% 1,120,000 1,120,000 1.8 Unsecured Fixed Rate Debt: Senior unsecured notes due 2019 3.750% 3.930% 350,000 8/15/2019 350,000 1.4 Senior unsecured notes due 2022 4.000% 4.000% 300,000 7/15/2022 300,000 4.3 Senior unsecured notes due 2046 5.875% 5.875% 310,000 5/1/2046 310,000 28.1 Subtotal / weighted average 4.514% 4.580% 960,000 960,000 10.9 Secured Fixed Rate Debt: Mortgage debt - One building in Tampa, FL 7.000% 5.150% 8,152 3/1/2019 7,890 0.9 Mortgage debt - One building in Washington, DC 5.720% 3.690% 34,285 7/1/2020 32,462 2.3 Mortgage debt - One building in Chesapeake, VA 4.260% 4.190% 3,126 11/1/2020 2,635 2.6 Mortgage debt - One building in Lakewood, CO 8.150% 6.150% 3,771 3/1/2021 118 2.9 Mortgage debt - One building in Fairfax, VA 5.877% 5.877% 13,628 8/11/2021 12,702 3.4 Mortgage debt - One building in Washington, DC 4.220% 4.190% 27,708 7/1/2022 24,668 4.3 Mortgage debt - One building in Washington, DC 4.800% 4.190% 24,798 6/1/2023 22,584 5.2 Mortgage debt - One building in Washington, DC 4.050% 4.440% 66,780 9/1/2030 60,566 12.4 Subtotal / weighted average 4.849% 4.397% 182,248 163,625 6.7 Total / weighted average 3.898% 3.890% $ 2,262,248 $ 2,243,625 6.1


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 DEBT M ATURIT Y SCHEDUL E 15 DEBT MATURITY SCHEDULE (1) (dollars in thousands) As of March 31, 2018 (1) The data presented exclude two mortgage notes with an aggregate principal balance of $82,000, which are secured by two properties (three buildings) owned by two unconsolidated joint ventures in which we own 50% and 51% interests. See page 19 for additional information regarding these unconsolidated joint ventures and the related mortgage notes. (2) Principal balances are the amounts actually payable pursuant to the applicable agreements. Our carrying values may differ from these amounts because of the effect of unamortized premiums and discounts and certain issuance costs related to these debts. (3) The carrying value of our total consolidated debt of $2,244,848 as of March 31, 2018 is net of unamortized premiums and discounts and certain issuance costs totaling $17,400. (4) Represents amounts outstanding under our $750,000 revolving credit facility at March 31, 2018. Subject to meeting certain conditions and payment of a fee, we may extend the maturity date of our revolving credit facility by one year to January 31, 2020. (5) Represents the outstanding balance of our $300,000 term loan at March 31, 2018. We may prepay this term loan without penalty at any time. (6) Represents the outstanding balance of our $250,000 term loan at March 31, 2018. We may prepay this term loan without penalty at any time. Unsecured Unsecured Secured Floating Fixed Rate Fixed Rate Year Rate Debt (2) Debt (2) Debt (2) Total (3) 2018 $ — $ — $ 2,772 $ 2,772 2019 570,000 (4) 350,000 11,541 931,541 2020 300,000 (5) — 38,433 338,433 2021 — — 14,420 14,420 2022 250,000 (6) 300,000 25,518 575,518 2023 — — 22,784 22,784 2030 — — 66,780 66,780 2046 — 310,000 — 310,000 Total $ 1,120,000 $ 960,000 $ 182,248 $ 2,262,248 Percent of total debt 49.5% 42.4% 8.1% 100.0%


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 LEVERAGE R ATIOS, COVERAGE R ATIOS AND PUBLIC DEBT COVENANT S 16 LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS (1) Debt amounts represent the principal balance as of the date reported. The carrying value of our total consolidated debt of $2,244,848 as of March 31, 2018 is net of unamortized premiums and discounts and certain issuance costs totaling $17,400. Total consolidated debt excludes two mortgage notes with an aggregate principal balance of $82,000, which are secured by two properties (three buildings) owned by two unconsolidated joint ventures in which we own 50% and 51% interests. See page 19 for more information regarding these joint ventures. (2) Total gross assets is total assets plus accumulated depreciation. (3) As of March 31, 2018, we owned 24,918,421 common shares of SIR. The closing price of SIR's common shares on The Nasdaq Stock Market LLC on March 31, 2018 was $19.48 per share. (4) Total market capitalization is total consolidated debt plus the market value of our common shares at the end of each period. (5) See page 22 for the calculation of Adjusted EBITDA and a reconciliation of net income (loss) determined in accordance with GAAP to that amount. (6) Adjusted total assets and total unencumbered assets include original cost of real estate assets calculated in accordance with GAAP before impairment writedowns, if any, and the lower of cost or market value of our investment in SIR and exclude depreciation and amortization, accounts receivable and intangible assets. (7) Consolidated income available for debt service is earnings from operations excluding interest expense, depreciation and amortization, loss on asset impairment, unrealized appreciation on assets held for sale, gains and losses on early extinguishment of debt, gains and losses on sales of properties, gains or losses on equity issuance by SIR and equity earnings in SIR and including distributions received from SIR and our unconsolidated joint ventures, if any, determined together with debt service for the period presented. As of and for the Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Leverage Ratios: Total consolidated debt (1) / total gross assets (2) 56.4% 55.9% 54.3% 51.8% 52.0% Total consolidated debt (1) / total gross assets (2) with SIR common shares at market value (3) 56.1% 53.8% 52.8% 49.6% 49.1% Total consolidated debt (1) / total market capitalization (4) 62.6% 55.2% 53.0% 51.6% 48.4% Consolidated secured debt (1) / total assets 5.0% 4.9% 0.7% 1.1% 1.1% Variable rate debt (1) / total consolidated debt (1) 49.5% 49.5% 53.1% 50.7% 50.8% Coverage Ratios: Adjusted EBITDA (5) / interest expense 3.2x 3.4x 3.2x 3.7x 3.8x Total consolidated debt (1) / Annualized Adjusted EBITDA (5) 7.7x 7.7x 10.1x 6.7x 6.7x Public Debt Covenants: Total debt / adjusted total assets (6) - allowable maximum 60.0% 54.7% 52.8% 51.5% 47.9% 47.6% Secured debt / adjusted total assets (6) - allowable maximum 40.0% 4.4% 4.2% 0.7% 0.9% 0.9% Consolidated income available for debt service (7) / debt service - required minimum 1.50x 3.2x 3.4x 3.9x 4.0x 4.1x Total unencumbered assets (6) to unsecured debt - required minimum 150.0% 174.8% 181.9% 193.7% 208.1% 209.4%


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 SUMMA RY OF CAPI TA L EXPENDITURE S 17 SUMMARY OF CAPITAL EXPENDITURES (1) (dollars and sq. ft. in thousands, except per sq. ft. data) (1) The data presented exclude capital expenditures of our two properties (three buildings) owned by our two unconsolidated joint ventures. (2) Tenant improvements include capital expenditures used to improve tenants' space or amounts paid directly to tenants to improve their space. (3) Leasing costs include leasing related costs, such as brokerage commissions and tenant inducements. (4) Building improvements generally include expenditures to replace obsolete building components and expenditures that extend the useful life of existing assets. (5) Development, redevelopment and other activities generally include (i) capital expenditures that are identified at the time of a property acquisition and incurred within a short time period after acquiring the property, and (ii) capital expenditure projects that reposition a property or result in new sources of revenue. (6) Rentable square footage is subject to changes when space is re-measured or re-configured for tenants. For the Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Tenant improvements (2) $ 2,843 $ 9,358 $ 3,213 $ 1,076 $ 2,403 Leasing costs (3) 1,986 1,745 1,993 971 1,087 Building improvements (4) 2,707 6,552 2,640 4,465 1,778 Recurring capital expenditures 7,536 17,655 7,846 6,512 5,268 Development, redevelopment and other activities (5) 1,416 5,191 3,132 6,949 6,281 Total capital expenditures $ 8,952 $ 22,846 $ 10,978 $ 13,461 $ 11,549 Average sq. ft. during period (6) 17,416 17,443 11,516 11,514 11,477 Building improvements per average sq. ft. during period $ 0.16 $ 0.38 $ 0.23 $ 0.39 $ 0.15


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 PROPERT Y ACQUISITION AND DISPOSITION INFORM ATION SINCE JANUA RY 1, 201 8 18 PROPERTY ACQUISITION AND DISPOSITION INFORMATION SINCE JANUARY 1, 2018 (dollars and sq. ft. in thousands, except per sq. ft. data) Acquisitions: We have not acquired any properties since January 1, 2018. Dispositions: Date Number of Number of Sale Sold City and State Properties Buildings Sq. Ft. Price (1) 3/2/2018 Minneapolis, MN 1 1 194 $ 20,000 (1) Represents the gross contract sales price and excludes closing costs.


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 INVESTMENT IN UNCONSOLID ATED JOINT VENTURE S 19 INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (dollars in thousands) (1) Lease term is weighted based on annualized rental income. Annualized rental income is calculated using the annualized contractual base rents from our unconsolidated joint ventures' tenants pursuant to our lease agreements as of March 31, 2018, plus straight line rent adjustments and estimated recurring expense reimbursements to be paid to us, and excluding lease value amortization. (2) Includes the effect of interest rate protection and mark to market accounting. (3) Reflects the entire balance of the debt secured by the properties and is not adjusted to reflect the part of the joint venture arrangement interests we do not own. (4) Reflects our proportionate share of the principal debt balances based on our ownership percentage of the applicable joint venture; none of the debt is recourse to us. (5) The mortgage loan requires interest-only payments through December 2024, at which time the loan requires principal and interest payments through its maturity date. (6) Reflects our proportionate share of operating results for the three months ended March 31, 2018 based on our ownership percentage of the respective joint ventures. (7) Includes depreciation and amortization and interest expense, net of other income. (8) Our unconsolidated joint ventures report rental income on a straight line basis over the terms of the respective leases; accordingly, 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 our unconsolidated joint ventures by our tenants, as well as the net effect of non-cash amortization of intangible lease assets and liabilities. Unconsolidated Joint Ventures: GOV Ownership GOV Investment at March 31, 2018 Property Type Number of Buildings Location Square Feet Percent Leased at March 31, 2018 Weighted Average Lease Term (1) Prosperity Metro Plaza 51% $ 27,086 Office 2 Fairfax, VA 328,456 100.0% 4.2 years 1750 H Street, NW 50% 21,672 Office 1 Washington, DC 115,411 100.0% 3.1 years Total / Weighted Average $ 48,758 3 443,867 100.0% 3.8 years Outstanding Unconsolidated Debt: GOV Ownership Interest Rate (2) Principal Balance at March 31, 2018 (3) Annualized Debt Service Maturity Date Balance at Maturity (3) GOV Share of Principal Balance (4) Prosperity Metro Plaza (5) 51% 4.090% $ 50,000 2,045 12/1/2029 $ 45,246 $ 25,500 1750 H Street, NW 50% 3.690% 32,000 1,181 8/1/2024 32,000 16,000 Total / Weighted Average 3.934% $ 82,000 3,226 $ 77,246 $ 41,500 For the Three Months Ended March 31, 2018 Results of Operations - Unconsolidated Joint Ventures: (6) Prosperity Metro Plaza 1750 H Street, NW Total Equity in losses from affiliates $ (355) $ (265) $ (620) Other expenses, net (7) 1,820 833 2,653 NOI 1,465 568 2,033 Lease value amortization included in rental income (8) (13) 101 88 Non-cash straight-line rent adjustments included in rental income (8) (12) (27) (39) Cash Basis NOI 1,440 642 2,082 Distributions received $ 447 $ 376 $ 823


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 CALCUL ATION OF CONSOLID ATED PROPERT Y NET OPER ATING INCOME (NOI) AN D CONSOLID ATED PROPERT Y CASH BASIS NOI 20 CALCULATION OF CONSOLIDATED PROPERTY NET OPERATING INCOME (NOI) AND CONSOLIDATED PROPERTY CASH BASIS NOI (1) (dollars in thousands) (1) See Definitions of Certain Non-GAAP Financial Measures on page 24 for the definitions of Consolidated Property NOI and Consolidated Property Cash Basis NOI, a description of why we believe they are appropriate supplemental measures and a description of how we use these measures. The data presented exclude two properties (three buildings) owned by our two unconsolidated joint ventures. (2) Excludes one property (one building) classified as discontinued operations which was sold on August 31, 2017. (3) We report rental income on a straight line basis over the terms of the respective leases; accordingly, 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 us by our tenants, as well as the net effect of non-cash amortization of intangible lease assets and liabilities. (4) We recorded a liability for the amount by which the estimated fair value for accounting purposes exceeded the price we paid for our investment in RMR Inc. 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 are included in property operating expenses. For the Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Calculation of Consolidated Property NOI and Consolidated Property Cash Basis NOI: (2) Rental income (3) $ 108,717 $ 107,170 $ 70,179 $ 69,887 $ 69,296 Property operating expenses (42,491) (41,077) (29,137) (27,300) (26,775) Consolidated Property NOI 66,226 66,093 41,042 42,587 42,521 Non-cash straight line rent adjustments included in rental income (3) (3,091) (2,467) (711) (1,104) (1,300) Lease value amortization included in rental income (3) 835 901 619 617 627 Non-cash amortization included in property operating expenses (4) (121) (121) (121) (121) (121) Consolidated Property Cash Basis NOI $ 63,849 $ 64,406 $ 40,829 $ 41,979 $ 41,727 Reconciliation of Net Income (Loss) Available for Common Shareholders to Consolidated NOI and Consolidated Property Cash Basis NOI: Net income (loss) available for common shareholders $ 6,287 $ (18,266) $ 10,989 $ 11,677 $ 7,415 Preferred units of limited partnership distributions 278 275 — — — Net income (loss) 6,565 (17,991) 10,989 11,677 7,415 Income (loss) from discontinued operations — — (462) 145 144 Income (loss) from continuing operations 6,565 (17,991) 10,527 11,822 7,559 Equity in earnings of investees (9,712) (767) (9,484) (8,581) (2,739) Income tax expense 32 36 22 25 18 Net gain on issuance of shares by SIR — — (51) (21) — Loss on early extinguishment of debt — — 1,715 — — Interest expense 22,766 21,807 16,055 13,963 13,581 Interest income (116) (119) (1,715) (67) (61) Unrealized gain on equity securities (12,931) — — — — Dividend income (304) (304) (304) (304) (304) Operating income 6,300 2,662 16,765 16,837 18,054 General and administrative 9,606 6,532 3,266 5,087 3,962 Loss on impairment of real estate 6,116 9,260 230 — — Depreciation and amortization 44,204 47,639 20,781 20,663 20,505 Consolidated Property NOI 66,226 66,093 41,042 42,587 42,521 Non-cash amortization included in property operating expenses (4) (121) (121) (121) (121) (121) Lease value amortization included in rental income (3) 835 901 619 617 627 Non-cash straight line rent adjustments included in rental income (3) (3,091) (2,467) (711) (1,104) (1,300) Consolidated Property Cash Basis NOI $ 63,849 $ 64,406 $ 40,829 $ 41,979 $ 41,727


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 CALCUL ATION OF SAME PROPERT Y NOI AND CASH BASIS NOI 21 CALCULATION OF SAME PROPERTY NOI AND CASH BASIS NOI (1) (dollars in thousands) (1) See Definitions of Certain Non-GAAP Financial Measures on page 24 for the definitions of Consolidated Property NOI and Consolidated Property Cash Basis NOI, a description of why we believe they are appropriate supplemental measures and a description of how we use these measures. (2) Based on consolidated properties we owned as of March 31, 2018 and which we owned continuously since January 1, 2017. (3) Excludes one property (one building) classified as discontinued operations which was sold August 31, 2017. (4) We report rental income on a straight line basis over the terms of the respective leases; accordingly, 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 us by our tenants, as well as the net effect of non-cash amortization of intangible lease assets and liabilities. (5) We recorded a liability for the amount by which the estimated fair value for accounting purposes exceeded the price we paid for our investment in RMR Inc. 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 are included in property operating expenses. For the Three Months Ended (2) 3/31/2018 3/31/2017 Reconciliation of Consolidated Property NOI to Same Property NOI: (3) Rental income $ 108,717 $ 69,296 Property operating expenses (42,491) (26,775) Consolidated Property NOI 66,226 42,521 Less: NOI of properties not included in same property results (24,679) (470) Same property NOI $ 41,547 $ 42,051 Calculation of Same Property Cash Basis NOI: Same property NOI $ 41,547 $ 42,051 Add: Lease value amortization included in rental income (4) 531 616 Less: Non-cash straight line rent adjustments included in rental income (4) (633) (1,267) Non-cash amortization included in property operating expenses (5) (121) (118) Same property Cash Basis NOI $ 41,324 $ 41,282


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 CALCUL ATION OF EBITD A AND ADJUSTED EBITD A 22 CALCULATION OF EBITDA AND ADJUSTED EBITDA (1) (dollars in thousands) (1) See Definitions of Certain Non-GAAP Financial Measures on page 24 for the definitions of EBITDA and Adjusted EBITDA and a description of why we believe they are appropriate supplemental measures. (2) Amounts represent equity compensation awarded to our trustees, officers and certain other employees of RMR LLC. (3) Incentive fees under our business management agreement with RMR LLC are payable after the end of each calendar year, are calculated based on common share total return, as defined, and are included in general and administrative expense in our condensed consolidated statements of income. In calculating net income (loss) in accordance with GAAP, we recognize estimated business management incentive fee expense, if any, in the first, second and third quarters. Although we recognize this expense, if any, in the first, second and third quarters for purposes of calculating net income (loss), we do not include such expense in the calculation of Adjusted EBITDA until the fourth quarter, when the amount of the business management incentive fee expense for the calendar year, if any, is determined. (4) Unrealized gain on equity securities represents the adjustment required to adjust the carrying value of our investment in RMR Inc. common shares to its fair value as of March 31, 2018 in accordance with new GAAP standards effective January 1, 2018. For the Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Net income (loss) $ 6,565 $ (17,991) $ 10,989 $ 11,677 $ 7,415 Add: Interest expense 22,766 21,807 16,055 13,963 13,581 Income tax expense 32 36 22 25 18 Depreciation and amortization 44,204 47,639 20,781 20,663 20,505 EBITDA 73,567 51,491 47,847 46,328 41,519 Add (less): General and administrative expense paid in common shares (2) (62) 209 432 459 277 Estimated business management incentive fees (3) 2,887 — (893) 893 — Increase in carrying value of property included in discontinued operations — — (619) — — Loss on impairment of real estate 6,116 9,260 230 — — Distributions received from SIR 12,708 12,708 12,708 12,708 12,708 Distributions received from unconsolidated joint ventures 823 482 — — — Loss on early extinguishment of debt — — 1,715 — — Equity in earnings of SIR (10,289) (1,313) (9,453) (8,207) (2,611) Equity in losses of unconsolidated joint ventures 620 621 — — — Net gain on issuance of shares by SIR — — (51) (21) — Unrealized gain on equity securities (4) (12,931) — — — — Adjusted EBITDA $ 73,439 $ 73,458 $ 51,916 $ 52,160 $ 51,893


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 CALCUL ATION OF FUNDS FROM OPER ATIONS (FFO) AND NORMALIZED FF O AV AILABLE FOR COMMON SHAREHOLDER S 23 CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO AVAILABLE FOR COMMON SHAREHOLDERS (1) (amounts in thousands, except per share data) (1) See Definitions of Certain Non-GAAP Financial Measures on page 24 for the definitions of FFO available for common shareholders and Normalized FFO available for common shareholders, a description of why we believe they are appropriate supplemental measures and a description of how we use these measures. (2) Incentive fees under our business management agreement with RMR LLC are payable after the end of each calendar year, are calculated based on common share total return, as defined, and are included in general and administrative expense in our consolidated statements of income. In calculating net income (loss) available for common shareholders in accordance with GAAP, we recognize estimated business management incentive fee expense, if any, in the first, second and third quarters. Although we recognize this expense, if any, in the first, second and third quarters for purposes of calculating net income (loss) available for common shareholders, we do not include such expense in the calculation of Normalized FFO available for common shareholders until the fourth quarter, when the amount of the business management incentive fee expense for the calendar year, if any, is determined. Normalized FFO excludes estimated business management incentive fee expense of $2,887 for the three months ended March 31, 2018. (3) Unrealized gain on equity securities represents the adjustment required to adjust the carrying value of our investment in RMR Inc. common shares to its fair value as of March 31, 2018 in accordance with new GAAP standards effective January 1, 2018. For the Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Net income (loss) available for common shareholders $ 6,287 $ (18,266) $ 10,989 $ 11,677 $ 7,415 Add (less): Depreciation and amortization: Consolidated properties 44,204 47,639 20,781 20,663 20,505 Unconsolidated joint venture properties 2,185 2,185 — — — FFO attributable to SIR investment 18,488 10,297 18,429 17,149 12,404 Loss on impairment of real estate 6,116 9,260 230 — — Equity in earnings of SIR (10,289) (1,313) (9,453) (8,207) (2,611) Increase in carrying value of property included in discontinued operations — — (619) — — FFO available for common shareholders 66,991 49,802 40,357 41,282 37,713 Add (less): Loss on early extinguishment of debt — — 1,715 — — Normalized FFO attributable to SIR investment 15,606 9,680 16,903 17,407 14,590 FFO attributable to SIR investment (18,488) (10,297) (18,429) (17,149) (12,404) Net gain on issuance of shares by SIR — — (51) (21) — Estimated business management incentive fees (2) 2,887 — (893) 893 — Unrealized gain on equity securities (3) (12,931) — — — — Normalized FFO available for common shareholders $ 54,065 $ 49,185 $ 39,602 $ 42,412 $ 39,899 Weighted average common shares outstanding (basic) 99,041 99,040 96,883 71,088 71,079 Weighted average common shares outstanding (diluted) 99,049 99,040 96,958 71,119 71,094 Per common share amounts (basic and diluted): Net income (loss) available for common shareholders $ 0.06 $ (0.18) $ 0.11 $ 0.16 $ 0.10 FFO available for common shareholders $ 0.68 $ 0.50 $ 0.42 $ 0.58 $ 0.53 Normalized FFO available for common shareholders $ 0.55 $ 0.50 $ 0.41 $ 0.60 $ 0.56


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 NON-GAA P FINANCIA L MEASURES DEFINITION S 24 DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES Definition of Consolidated Property NOI and Consolidated Property Cash Basis NOI We calculate Consolidated Property NOI and Consolidated Property Cash Basis NOI as shown on page 20. 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 our consolidated property level results of operations. We define Consolidated Property NOI as consolidated income from our rental of real estate less our consolidated property operating expenses. Consolidated Property NOI excludes amortization of capitalized tenant improvement costs and leasing commissions that we record as depreciation and amortization. We define 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. We consider Consolidated Property NOI and Consolidated Property Cash Basis NOI to be appropriate supplemental measures to net income available for common shareholders because they may help both investors and management to understand the operations of our consolidated properties. We use Consolidated Property NOI and Consolidated Property Cash Basis NOI to evaluate individual and company wide consolidated property level performance, and we believe that Consolidated Property NOI and Consolidated Property Cash Basis NOI provide useful information to investors regarding our 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 our 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 our operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income, net income available for common shareholders and operating income as presented in our Condensed Consolidated Statements of Income. Other real estate companies and REITs may calculate Consolidated Property NOI and Consolidated Property Cash Basis NOI differently than we do. In addition, we present our proportionate share of NOI and Cash Basis NOI from our unconsolidated joint ventures. We provide a reconciliation of NOI and Cash Basis NOI from unconsolidated joint ventures to equity in losses from affiliates on page 19. Definition of EBITDA and Adjusted EBITDA We calculate EBITDA and Adjusted EBITDA as shown on page 22. We consider EBITDA and Adjusted EBITDA to be appropriate supplemental measures of our operating performance, along with net income (loss) and operating income. We believe that EBITDA and Adjusted EBITDA provide useful information to investors because by excluding the effects of certain historical amounts, such as interest, depreciation and amortization expense, EBITDA and Adjusted EBITDA may facilitate a comparison of current operating performance with our past operating performance. EBITDA and Adjusted EBITDA do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income (loss) or operating income as indicators of operating performance or as measures of GOV’s liquidity. These measures should be considered in conjunction with net income and operating income as presented in our Condensed Consolidated Statements of Income. Other REITs and real estate companies may calculate EBITDA and Adjusted EBITDA differently than we do. Definition of FFO and Normalized FFO We calculate FFO available for common shareholders and Normalized FFO available for common shareholders as shown on page 23. 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 our 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 us. Our calculation of Normalized FFO available for common shareholders differs from Nareit's definition of FFO available for common shareholders because we include SIR's Normalized FFO attributable to our equity investment in SIR (net of FFO attributable to our equity investment in SIR), we include 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 our 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 we exclude gains on issuance of shares by SIR, losses on early extinguishment of debt and unrealized gains and losses on equity securities. We consider 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 our common shareholders and operating income. We believe 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 our 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 our Board of Trustees when determining the amount of distributions to our shareholders. Other factors include, but are not limited to, requirements to maintain our qualification for taxation as a REIT, limitations in our credit agreement and public debt covenants, the availability to us of debt and equity capital, our expectation of our future capital requirements and operating performance, our receipt of distributions from SIR and our expected needs for and availability of cash to pay our 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 our operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income, net income available for common shareholders and operating income as presented in our Condensed Consolidated Statements of Income. Other real estate companies and REITs may calculate FFO available for common shareholders and Normalized FFO available for common shareholders differently than we do.


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 PORTFOLIO INFORMATION 25 Stevens Center, Richland, WA Square Feet: 140,152 Agency Occupant: Department of Energy


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 PORTFOLIO SUMMA RY 26 PORTFOLIO SUMMARY (1) As of March 31, 2018 (1) The data presented exclude two properties (three buildings) owned by two unconsolidated joint ventures in which we own 50% and 51% interests. See page 19 for more information regarding these joint ventures. (2) Rentable square footage is subject to changes when space is re-measured or re-configured for tenants. (3) Percent leased includes (i) space being fitted out for occupancy pursuant to our lease agreements, if any, and (ii) space which is leased, but is not occupied or is being offered for sublease by tenants, if any, as of the measurement date. (4) See Page 20 for the calculation of Consolidated Property NOI and Consolidated Property Cash Basis NOI and a reconciliation of net income (loss) available for common shareholders determined in accordance with GAAP to those amounts. % of Total % Rental Income % Consolidated Property NOI % Consolidated Property Cash Basis NOI Number of Number of Sq. Ft. Three Months Three Months Three Months Properties Buildings Sq. Ft. (2) % Sq. Ft. % Leased (3) Leased Ended 3/31/2018 Ended 3/31/2018 (4) Ended 3/31/2018 (4) Properties majority leased to the U.S. Government 49 64 7,844,176 45.3% 96.9% 46.5% 45.1% 46.7% 48.1% Properties majority leased to state governments 21 28 3,119,690 18.0% 95.3% 18.2% 17.8% 16.0% 16.6% Properties majority leased to other government tenants 3 3 446,478 2.6% 96.7% 2.6% 4.0% 3.6% 3.4% Properties majority leased to government contractor tenants 2 4 463,019 2.7% 98.8% 2.8% 3.1% 3.3% 3.7% Properties majority leased to other tenants 30 65 5,337,919 30.8% 91.7% 29.9% 30.0% 30.4% 28.2% Other properties (currently vacant) 2 2 120,898 0.6% —% —% —% —% —% Total / Average 107 166 17,332,180 100.0% 94.4% 100.0% 100.0% 100.0% 100.0%


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 SUMMA RY CONSOLID ATED AND SAME PROPERT Y RESU LT S 27 SUMMARY CONSOLIDATED AND SAME PROPERTY RESULTS – FIRST QUARTER (dollars and sq. ft. in thousands) (1) Based on consolidated properties we owned as of March 31, 2018 and March 31, 2017, respectively, excluding one property (one building) classified as discontinued operations which was sold on August 31, 2017. (2) Based on consolidated properties we owned as of March 31, 2018 and which we owned continuously since January 1, 2017. (3) Subject to changes when space is re-measured or re-configured for tenants. (4) Percent leased includes (i) space being fitted out for occupancy pursuant to our lease agreements, if any, and (ii) space which is leased, but is not occupied or is being offered for sublease by tenants, if any, as of the measurement date. (5) We report rental income on a straight line basis over the terms of the respective leases; accordingly, 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 us by our tenants, as well as the net effect of non-cash amortization of intangible lease assets and liabilities. (6) See page 20 for the calculation of Consolidated Property NOI and Consolidated Property Cash Basis NOI and a reconciliation of net income (loss) available for common shareholders determined in accordance with GAAP to those amounts and see page 21 for a calculation and reconciliation of same property NOI and same property Cash Basis NOI. (7) Consolidated Property NOI margin is defined as Consolidated Property NOI as a percentage of rental income. Consolidated Property Cash Basis NOI margin is defined as Consolidated Property Cash Basis NOI as a percentage of cash basis rental income. Cash basis rental income excludes non-cash straight line rent adjustments, non-cash amortization included in property operating expenses and the net effect of non-cash amortization of intangible lease assets and liabilities. Summary Consolidated Results (1) Summary Same Property Results (2) For the Three Months Ended For the Three Months Ended 3/31/2018 3/31/2017 3/31/2018 3/31/2017 Consolidated properties (end of period) 107 74 71 71 Total sq. ft. (3) 17,332 11,512 11,234 11,220 Percent leased (4) 94.4% 95.1% 95.3% 95.7% Rental income (5) $ 108,717 $ 69,296 $ 69,589 $ 68,143 Consolidated Property NOI (6) $ 66,226 $ 42,521 $ 41,547 $ 42,051 Consolidated Property Cash Basis NOI (6) $ 63,849 $ 41,727 $ 41,324 $ 41,282 Consolidated Property NOI % margin (7) 60.9% 61.4% 59.7% 61.7% Consolidated Property Cash Basis NOI % margin (7) 60.0% 60.8% 59.5% 61.2% Consolidated Property NOI % change 55.7% — (1.2%) — Consolidated Property Cash Basis NOI % change 53.0% — 0.1% —


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 OCCU PANC Y AND LEASING SUMMA RY 28 OCCUPANCY AND LEASING SUMMARY (1) (dollars and sq. ft. in thousands, except per sq. ft. data) (1) The data presented exclude one property (one building) classified as discontinued operations which was sold on August 31, 2017 and two properties (three buildings) owned by two unconsolidated joint ventures in which we own 50% and 51% interests. See page 19 for more information regarding these joint ventures. (2) Rentable square footage is subject to changes when space is re-measured or re-configured for tenants. (3) Percent difference in prior rents charged for same space or, in the case of space acquired vacant, market rental rates for similar space in the building at the date of acquisition. Rents include estimated recurring expense reimbursements paid to us, exclude lease value amortization and are net of lease concessions. (4) Includes commitments made for leasing expenditures and concessions, such as tenant improvements, leasing commissions, tenant reimbursements and free rent. The above leasing summary is based on leases entered during the periods indicated. As of and for the Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Consolidated Properties (end of period) 107 108 74 74 74 Total sq. ft. (2) 17,332 17,499 11,517 11,516 11,512 Percentage leased 94.4% 94.2% 95.0% 95.0% 95.1% Leasing Activity (sq. ft.): (2) Government tenants 72 279 393 236 324 Non-government tenants 208 241 43 52 36 Total 280 520 436 288 360 % Change in GAAP Rent: (3) Government tenants 20.2% 8.0% 0.2% 15.0% 4.5% Non-government tenants 1.2% (4.0%) (11.1%) 6.6% 7.1% Total 4.9% 3.3% (0.6%) 13.5% 5.2% Leasing Cost and Concession Commitments: (4) Government tenants $ 3,682 $ 1,942 $ 6,629 $ 1,611 $ 879 Non-government tenants 4,316 3,698 1,273 854 1,362 Total $ 7,998 $ 5,640 $ 7,902 $ 2,465 $ 2,241 Leasing Cost and Concession Commitments per Sq. Ft.: (4) Government tenants $ 51.13 $ 6.96 $ 16.86 $ 6.82 $ 2.71 Non-government tenants $ 20.71 $ 15.33 $ 29.64 $ 16.33 $ 37.87 Total $ 28.52 $ 10.84 $ 18.12 $ 8.55 $ 6.22 Weighted Average Lease Term by Sq. Ft. (years): Government tenants 8.2 5.5 8.5 8.1 10.9 Non-government tenants 4.6 4.7 7.2 3.2 7.1 Total 5.6 5.1 8.4 7.2 10.6 Leasing Cost and Concession Commitments per Sq. Ft. per Year: (4) Government tenants $ 6.20 $ 1.25 $ 1.98 $ 0.85 $ 0.25 Non-government tenants $ 4.47 $ 3.29 $ 4.10 $ 5.09 $ 5.36 Total $ 5.13 $ 2.11 $ 2.16 $ 1.19 $ 0.59


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 LEASING ANA LYSIS B Y TENANT TYP E 29 LEASING ANALYSIS BY TENANT TYPE (1) (1) The data presented exclude two properties (three buildings) owned by two unconsolidated joint ventures in which we own 50% and 51% interests. See page 19 for more information regarding these joint ventures. (2) Rentable square footage leased is pursuant to leases existing as of the measurement date and includes (i) space being fitted out for occupancy, if any, and (ii) space which is leased, but is not occupied or is being offered for sublease, if any, as of the measurement date. Square footage measurements are subject to changes when space is re- measured or re-configured for new tenants. (3) New leases executed includes an expansion of 25,579 rentable square feet completed at an existing property. Sq. Ft. During theThree Months Ended 3/31/2018 Sq. Ft. Leased % of Sq. Ft. Lease New Net Sq. Ft. Leased % of Sq. Ft. As of Leased as of Leases Renewals Leases Acquisitions/ As of Leased as of Tenant Type 12/31/2017 (2) 12/31/2017 (2) Expired Executed Executed (3) Dispositions 3/31/2018 (2) 3/31/2018 (2) U.S. Government 7,203,649 43.7% (57,962) 57,956 36,234 (21,864) 7,218,013 44.1% State Government 2,606,360 15.8% — — 3,395 — 2,609,755 16.0% Other Government 452,134 2.7% — — — (10,395) 441,739 2.7% Government Contractor 1,014,419 6.2% (90,317) 80,339 — — 1,004,441 6.1% Other Tenants 5,200,777 31.6% (107,990) 58,291 69,783 (136,917) 5,083,944 31.1% 16,477,339 100.0% (256,269) 196,586 109,412 (169,176) 16,357,892 100.0%


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 TENANT LIS T 30 TENANT LIST As of March 31, 2018 (1) (1) The data presented exclude two properties (three buildings) owned by two unconsolidated joint ventures in which we own 50% and 51% interests. See page 19 for more information regarding these joint ventures. (2) Rentable square footage is pursuant to leases existing as of March 31, 2018, and includes (i) space being fitted out for occupancy, if any, and (ii) space which is leased but is not occupied or is being offered for sublease, if any. Rentable square footage measurements are subject to changes when space is re-measured or re-configured for new tenants. (3) Percentage of annualized rental income is calculated using annualized contractual base rents from our tenants pursuant to our lease agreements as of March 31, 2018, plus straight line rent adjustments and estimated recurring expense reimbursements to be paid to us, and excluding lease value amortization. (4) Agency occupant cannot be disclosed. % of Total % of % of Total % of Rentable Rentable Annualized Rentable Rentable Annualized Tenant / Agency Sq. Ft. (2) Sq. Ft. (2) Rental Income (3) Tenant Sq. Ft. (2) Sq. Ft. (2) Rental Income (3) U.S. Government: State Governments: 1 Citizenship and Immigration Services 448,607 2.6% 5.2% 1 State of California - eleven agency occupants 755,086 4.4% 5.0% 2 Internal Revenue Service 1,041,806 6.0% 5.0% 2 Commonwealth of Massachusetts - three agency occupants 310,514 1.8% 2.3% 3 U.S. Government (4) 406,388 2.3% 2.9% 3 State of Georgia - State Properties Commission 298,223 1.7% 1.5% 4 Federal Bureau of Investigation 304,425 1.8% 2.1% 4 Commonwealth of Virginia - two agency occupants 255,241 1.5% 1.4% 5 Bureau of Prisons 180,173 1.0% 2.1% 5 State of New Jersey - Department of Treasury 173,189 1.0% 1.2% 6 Centers for Disease Control 378,455 2.2% 2.0% 6 State of Oregon - four agency occupants 199,018 1.1% 1.1% 7 Department of Justice 239,411 1.4% 1.9% 7 State of Maryland - State of Maryland 185,949 1.1% 0.9% 8 General Services Administration 198,630 1.1% 1.6% 8 State of Washington - Social and Health Services 111,908 0.6% 0.6% 9 Bureau of Land Management 288,291 1.7% 1.6% 9 State of Arizona - Northern Arizona University 66,743 0.4% 0.3% 10 Customs and Border Protection 243,162 1.4% 1.5% 10 State of South Carolina -six agency occupants 124,238 0.7% 0.3% 11 Department of Veterans Affairs 247,012 1.4% 1.5% 11 State of Minnesota - Minnesota State Lottery 61,426 0.4% 0.3% 12 Defense Intelligence Agency 266,000 1.5% 1.3% 12 State of New York - three agency occupants 64,000 0.4% 0.3% 13 Social Security Administration 189,645 1.1% 1.1% 13 State of Kansas - University of Kansas 4,220 0.0% 0.0% 14 Bureau of Reclamation 212,996 1.2% 1.1% Subtotal State Governments 2,609,755 15.1% 15.2% 15 National Park Service 166,745 1.0% 1.1% 4 Other Government Tenants: 16 U.S. Courts 114,219 0.7% 1.1% The United Nations 187,060 1.1% 2.4% 17 Immigration and Customs Enforcement 90,688 0.5% 0.9% Montgomery County, MD 181,895 1.0% 1.2% 18 U.S. Coast Guard 139,319 0.8% 0.8% 2 Other Government Tenants 72,784 0.4% 0.4% 19 Drug Enforcement Agency 93,177 0.5% 0.8% Subtotal Other Government Tenants 441,739 2.5% 4.0% 20 Bureau of Safety and Environmental Enforcement 116,216 0.7% 0.8% Subtotal All Government Tenants 10,269,507 59.2% 63.2% 21 National Archives and Record Administration 352,064 2.0% 0.7% 26 Government Contractor Tenants: 22 Department of Health and Human Services 111,388 0.6% 0.7% BAE Systems plc 165,004 1.0% 1.5% 23 Department of Energy 140,152 0.8% 0.7% Leidos Holdings Inc 202,543 1.2% 1.4% 24 Defense Nuclear Facilities Board 60,133 0.3% 0.7% Science Applications International Corp 158,919 0.9% 1.2% 25 Department of State 83,130 0.5% 0.6% The Boeing Company 80,339 0.5% 0.7% 26 U.S. Postal Service 321,800 1.9% 0.6% 22 Other Government Contractor Tenants 397,636 2.3% 1.8% 27 Occupational Health and Safety Administration 57,770 0.3% 0.5% Subtotal Government Contractor Tenants 1,004,441 5.9% 6.6% 28 Bureau of the Fiscal Service 98,073 0.6% 0.5% 458 Other Tenants: 29 Centers for Medicare and Medicaid Services 78,361 0.5% 0.4% CareFirst Inc. 231,962 1.3% 2.8% 30 Military Entrance Processing Station 56,931 0.3% 0.4% ICF International, Inc. 127,946 0.7% 1.2% 31 Department of the Army 231,290 1.3% 0.4% Sentara Healthcare 276,974 1.6% 0.9% 32 Environmental Protection Agency 43,232 0.2% 0.4% GTCR, LLC 93,000 0.5% 0.6% 33 Department of Housing and Urban Development 82,497 0.5% 0.4% Odin, Feldman & Pittleman 53,918 0.3% 0.5% 34 Food and Drug Administration 33,398 0.2% 0.2% Conduent Inc 107,422 0.6% 0.5% 35 Department of Defense 31,030 0.2% 0.2% 452 Other Tenants 4,192,722 24.2% 23.7% 36 Defense Health Agency 15,939 0.1% 0.1% Subtotal Other Tenants 5,083,944 29.2% 30.2% 37 U.S. Navy 29,070 0.2% 0.1% Subtotal Leased Rentable Square Feet 16,357,892 94.4% 100.0% 38 Equal Employment Opportunity Commission 14,078 0.1% 0.1% Available for Lease 974,288 5.6% —% 39 Department of Labor 6,459 0.0% 0.0% Total Rentable Square Feet 17,332,180 100.0% 100.0% 40 U.S. Department of Transportation 5,853 0.0% 0.0% Subtotal U.S. Government 7,218,013 41.6% 44.0%


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 LEASE EXPIR ATION SCHEDUL E 31 LEASE EXPIRATION SCHEDULE (1) (dollars in thousands) As of March 31, 2018 (1) The data presented exclude two properties (three buildings) owned by two unconsolidated joint ventures in which we own 50% and 51% interests. See page 19 for more information regarding these joint ventures. (2) The year of lease expiration is pursuant to current contract terms. Some of our government tenants have the right to vacate their space before the stated expirations of their leases. In addition, certain of our government tenants have the right to terminate their leases if their respective legislature or other funding authority does not appropriate rent in their respective annual budgets. (3) Leased square footage is pursuant to leases existing as of March 31, 2018, and includes (i) space being fitted out for tenant occupancy pursuant to our lease agreements, if any, and (ii) space which is leased, but is not occupied or is being offered for sublease by tenants, if any. Square footage measurements are subject to changes when space is re-measured or re-configured for new tenants. (4) Annualized rental income is calculated using the annualized contractual base rents from our tenants pursuant to our lease agreements as of March 31, 2018, plus straight line rent adjustments and estimated recurring expense reimbursements to be paid to us, and excluding lease value amortization. Number of Tenants Expiration of leased Cumulative % Annualized Rental % of Cumulative % Year (2) Expiring square feet (3) % of Total of Total Income Expiring (4) Annualized Total of Total 2018 96 1,411,398 8.6% 8.6% $ 40,692 9.6% 9.6% 2019 92 2,559,522 15.6% 24.2% 73,394 17.3% 26.9% 2020 101 2,390,456 14.6% 38.8% 63,234 14.9% 41.8% 2021 83 1,762,246 10.8% 49.6% 36,619 8.6% 50.4% 2022 94 1,670,331 10.2% 59.8% 37,039 8.7% 59.1% 2023 56 1,247,556 7.6% 67.4% 36,534 8.6% 67.7% 2024 41 1,402,556 8.6% 76.0% 35,443 8.4% 76.1% 2025 32 1,074,820 6.6% 82.6% 24,770 5.8% 81.9% 2026 23 780,921 4.8% 87.4% 22,945 5.4% 87.3% 2027 and thereafter 50 2,058,086 12.6% 100.0% 53,510 12.7% 100.0% Total 668 16,357,892 100.0% $ 424,180 100.0% Weighted average remaining lease term (in years) 4.6 4.6


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 EXHIBIT 32 75 Pleasant Street, Malden, MA Square Feet: 125,521 Occupant: Department of Education, Commonwealth of Massachusetts


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 CONSOLID ATED PROPERT Y DE TAI L 33 EXHIBIT ACONSOLIDATED PROPERTY DETAIL (sorted by location) As of March 31, 2018 (1) (dollars in thousands) See notes on page 35. Annualized Year Built or No. of Primary Rentable Rental Undepreciated Depreciated Date Most Recent Property Location Buildings Tenant Type Sq. Ft. % Leased Income (2) Carrying Value Carrying Value Acquired (3) Renovation 1 131 Clayton Street Montgomery, AL 1 U.S. Government 57,815 100.0% $ 1,564 $ 10,033 $ 8,497 6/22/2011 2007 2 4344 Carmichael Road Montgomery, AL 1 U.S. Government 49,370 100.0% 1,522 13,032 11,793 12/17/2013 2009 3 15451 North 28th Avenue Phoenix, AZ 1 State 66,743 100.0% 1,452 9,801 9,122 9/10/2014 2013 4 5045 East Butler Street Fresno, CA 1 U.S. Government 531,976 100.0% 8,384 68,452 44,572 8/29/2002 1971 5 10949 N. Mather Boulevard Rancho Cordova, CA 1 State 93,807 100.0% 2,609 17,586 15,710 10/30/2013 2012 6 11020 Sun Center Drive Rancho Cordova, CA 1 State 82,896 100.0% 2,007 10,688 10,384 12/20/2016 2016 7 801 K Street Sacramento, CA 1 State 337,811 91.3% 9,845 72,299 68,102 1/29/2016 2002 8 9815 Goethe Road Sacramento, CA 1 State 87,863 100.0% 1,953 12,438 10,634 9/14/2011 1992 9 Capitol Place Sacramento, CA 1 State 163,840 89.7% 4,542 45,476 36,685 12/17/2009 1988 10 4181 Ruffin Road San Diego, CA 1 U.S. Government 145,734 97.9% 3,490 20,180 16,689 7/16/2010 2013 11 4560 Viewridge Road San Diego, CA 1 U.S. Government 93,177 100.0% 3,301 26,797 16,721 3/31/1997 1996 12 9174 Sky Park Centre San Diego, CA 1 U.S. Government 43,918 96.8% 1,192 8,896 6,072 6/24/2002 1986 13 603 San Juan Avenue Stockton, CA 1 U.S. Government 22,012 100.0% 971 6,033 5,258 7/20/2012 2012 14 16194 West 45th Street Golden, CO 1 U.S. Government 43,232 100.0% 1,584 6,883 3,776 3/31/1997 1997 15 12795 West Alameda Parkway Lakewood, CO 1 U.S. Government 166,745 100.0% 4,500 27,477 22,389 1/15/2010 1988 16 Corporate Center Lakewood, CO 3 U.S. Government 212,996 100.0% 4,569 34,313 22,504 10/11/2002 2004 17 11 Dupont Circle, NW Washington, DC 1 Non-Government 153,228 75.2% 7,020 74,498 73,858 10/2/2017 2004 18 1211 Connecticut Avenue, NW Washington, DC 1 Non-Government 132,481 80.2% 5,345 55,291 54,936 10/2/2017 2014 19 1401 K Street, NW Washington, DC 1 Non-Government 123,001 88.2% 6,114 65,451 64,867 10/2/2017 2016 20 20 Massachusetts Avenue Washington, DC 1 U.S. Government 340,119 100.0% 18,507 84,823 51,123 3/31/1997 1996 21 440 First Street, NW Washington, DC 1 Non-Government 141,576 98.4% 8,520 67,562 67,078 10/2/2017 2013 22 500 First Street, NW Washington, DC 1 U.S. Government 129,035 100.0% 8,036 46,182 45,958 10/2/2017 2010 23 625 Indiana Avenue Washington, DC 1 U.S. Government 160,897 95.1% 7,803 58,534 51,869 8/17/2010 1989 24 840 First Street, NE Washington, DC 1 Non-Government 253,164 99.7% 13,517 116,004 115,088 10/2/2017 2003 25 7850 Southwest 6th Court Plantation, FL 1 U.S. Government 135,819 100.0% 4,855 35,775 30,351 5/12/2011 1999 26 8900 Grand Oak Circle Tampa, FL 1 U.S. Government 67,916 100.0% 1,952 13,042 10,797 10/15/2010 2008 27 180 Ted Turner Drive SW Atlanta, GA 1 U.S. Government 90,688 100.0% 3,727 25,871 23,025 7/25/2012 2007 28 Corporate Square Atlanta, GA 5 U.S. Government 378,455 100.0% 8,472 61,337 49,512 7/16/2004 1967 29 Executive Park Atlanta, GA 1 Non-Government 125,788 100.0% 1,611 17,394 12,105 7/16/2004 2014 30 One Georgia Center Atlanta, GA 1 State 375,952 94.1% 7,682 41,730 36,984 9/30/2011 2008 31 4712 Southpark Boulevard Ellenwood, GA 1 U.S. Government 352,064 100.0% 3,131 21,114 18,329 7/25/2012 2005 32 1185, 1249 & 1387 S. Vinnell Way Boise, ID 3 U.S. Government 180,952 100.0% 4,682 33,227 28,967 9/11/2012 1996 33 2020 S. Arlington Heights Arlington Heights, IL 1 U.S. Government 57,770 100.0% 2,018 15,340 12,506 12/29/2009 2002 34 Intech Park Indianapolis, IN 3 U.S. Government 433,924 97.1% 9,998 77,033 64,841 10/14/2011 2000 35 400 State Street Kansas City, KS 1 U.S. Government 170,817 91.9% 2,928 15,276 12,562 6/16/2010 1971 36 7125 Industrial Road Florence, KY 1 U.S. Government 167,939 100.0% 2,554 13,491 11,949 12/31/2012 2002 37 251 Causeway Street Boston, MA 1 State 132,876 100.0% 4,071 24,462 20,877 8/17/2010 1988 38 75 Pleasant Street Malden, MA 1 State 125,521 100.0% 4,964 32,458 26,287 5/24/2010 2008 39 25 Newport Avenue Quincy, MA 1 State 92,549 100.0% 2,025 13,270 11,527 2/16/2011 2009 40 One Montvale Avenue Stoneham, MA 1 U.S. Government 97,777 94.1% 2,498 14,800 12,396 6/16/2010 1987


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 CONSOLID ATED PROPERT Y DE TAI L (Continued ) 34 EXHIBIT ACONSOLIDATED PROPERTY DETAIL (sorted by location) As of March 31, 2018 (1) (dollars in thousands) Annualized Year Built or No. of Primary Rentable Rental Undepreciated Depreciated Date Most Recent Property Location Buildings Tenant Type Sq. Ft. % Leased Income (2) Carrying Value Carrying Value Acquired (3) Renovation 41 Annapolis Commerce Center Annapolis, MD 2 State 101,275 100.0% $ 2,443 $ 11,722 $ 11,613 10/2/2017 1989 42 4201 Patterson Avenue Baltimore, MD 1 State 84,674 100.0% 1,270 12,941 8,312 10/15/1998 2014 43 Ammendale Commerce Center Beltsville, MD 3 Non-Government 129,303 83.7% 1,832 14,377 14,238 10/2/2017 1987 44 Indian Creek Technology Park Beltsville, MD 4 Non-Government 186,363 99.9% 3,836 21,191 21,018 10/2/2017 1988 45 Gateway 270 West Clarksburg, MD 6 Non-Government 252,295 92.9% 4,646 21,792 21,664 10/2/2017 2002 46 Hillside Center Columbia, MD 2 Non-Government 87,267 87.6% 1,683 7,685 7,634 10/2/2017 2014 47 Snowden Center Columbia, MD 5 Non-Government 145,423 91.8% 3,005 18,144 18,016 10/2/2017 1982 48 TenThreeTwenty Columbia, MD 1 Non-Government 140,439 95.3% 3,790 19,658 19,446 10/2/2017 2013 49 20400 Century Boulevard Germantown, MD 1 Vacant 80,550 —% — 13,478 8,107 3/31/1997 1995 50 Cloverleaf Center Germantown, MD 4 Non-Government 173,916 95.6% 3,492 16,547 16,470 10/2/2017 2000 51 3300 75th Avenue Landover, MD 1 U.S. Government 266,000 100.0% 5,309 41,532 34,011 2/26/2010 2004 52 1401 Rockville Pike Rockville, MD 1 Other Government 190,044 92.3% 4,660 48,952 31,227 2/2/1998 2015 53 2115 East Jefferson Street Rockville, MD 1 U.S. Government 128,645 84.6% 3,037 14,840 13,538 8/27/2013 2003 54 Metro Park North Rockville, MD 4 Non-Government 192,280 91.8% 3,843 18,874 18,756 10/2/2017 2001 55 Redland 520/530 Rockville, MD 3 Non-Government 351,857 93.2% 13,322 75,308 74,540 10/2/2017 2008 56 Redland 540 Rockville, MD 1 Non-Government 131,516 49.9% 2,062 31,077 30,783 10/2/2017 2017 57 Rutherford Business Park Windsor Mill, MD 1 U.S. Government 80,398 100.0% 1,932 11,827 10,465 11/16/2012 2011 58 Meadows Business Park Woodlawn, MD 2 U.S. Government 182,561 83.8% 3,280 27,431 23,340 2/15/2011 1997 59 11411 E. Jefferson Avenue Detroit, MI 1 U.S. Government 55,966 100.0% 2,731 18,990 15,413 4/23/2010 2009 60 Rosedale Corporate Plaza Roseville, MN 1 State 61,426 100.0% 1,126 8,222 4,958 12/1/1999 1987 61 1300 Summit Street Kansas City, MO 1 U.S. Government 86,739 100.0% 2,357 15,099 13,408 9/27/2012 1998 62 4241-4300 NE 34th Street Kansas City, MO 1 U.S. Government 98,073 100.0% 1,919 11,567 7,599 3/31/1997 1995 63 1220 Echelon Parkway Jackson, MS 1 U.S. Government 109,819 100.0% 3,982 25,946 22,327 7/25/2012 2009 64 10-12 Celina Avenue Nashua, NH 1 U.S. Government 321,800 100.0% 2,439 18,605 15,544 8/31/2009 1997 65 50 West State Street Trenton, NJ 1 State 266,995 85.0% 6,668 45,941 38,732 12/30/2010 1989 66 138 Delaware Avenue Buffalo, NY 1 U.S. Government 121,711 63.6% 1,611 28,637 17,383 3/31/1997 2014 67 Airline Corporate Center Colonie, NY 1 State 64,000 100.0% 1,061 7,222 6,301 6/22/2012 2004 68 5000 Corporate Court Holtsville, NY 1 U.S. Government 264,482 85.7% 5,997 26,750 23,415 8/31/2011 2000 69 305 East 46th Street New York, NY 1 Other Government 187,060 100.0% 10,290 107,915 96,249 5/27/2011 2008 70 4600 25th Avenue Salem, OR 1 State 233,358 97.8% 5,170 28,923 24,657 12/20/2011 2007 71 Synergy Business Park Columbia, SC 3 State 180,703 91.2% 2,146 17,370 13,490 5/10/2006;9/17/2010 1985 72 One Memphis Place Memphis, TN 1 U.S. Government 204,694 72.3% 3,115 9,880 8,370 9/17/2010 1985 73 701 Clay Road Waco, TX 1 U.S. Government 138,608 100.0% 2,993 13,773 8,990 12/23/1997 1997 74 14660, 14672 & 14668 Lee Road Chantilly, VA 3 Government Contractor 409,478 98.7% 13,502 81,577 79,254 12/22/2016 1998 See notes on page 35.


 
Government Properties Income Trust Supplemental Operating and Financial Data, March 31, 2018 CONSOLID ATED PROPERT Y DE TAI L (Continued ) 35 EXHIBIT ACONSOLIDATED PROPERTY DETAIL (sorted by location) (1) The data presented exclude two properties (three buildings) owned by two unconsolidated joint ventures in which we own 50% and 51% interests. See page 19 for more information regarding these joint ventures. (2) Annualized rental income is calculated using the annualized contractual base rents from our tenants pursuant to our lease agreements as of March 31, 2018, plus straight line rent adjustments and estimated recurring expense reimbursements to be paid to us, and excluding lease value amortization. (3) Date acquired is the date we acquired the property or the date our former parent entity acquired the property for those properties that our former parent entity contributed to us in June 2009 in connection with our initial public offering. (4) Carrying values exclude intangible and other assets. As of March 31, 2018 (1) (dollars in thousands) Annualized Year Built or No. of Primary Rentable Rental Undepreciated Depreciated Date Most Recent Property Location Buildings Tenant Type Sq. Ft. % Leased Income (2) Carrying Value Carrying Value Acquired (3) Renovation 75 1408 Stephanie Way Chesapeake, VA 1 Government Contractor 53,541 100.0 % 841 3,958 3,915 10/2/2017 2000 76 1434 Crossways Chesapeake, VA 2 Non-Government 213,955 100.0 % 3,977 23,420 23,149 10/2/2017 2002 77 1441 Crossways Boulevard Chesapeake, VA 1 U.S. Government 144,512 100.0 % 2,734 12,676 12,530 10/2/2017 1988 78 535 Independence Parkway Chesapeake, VA 1 Non-Government 96,720 100.0 % 1,173 8,266 8,183 10/2/2017 1987 79 Crossways Chesapeake, VA 4 Non-Government 586,768 100.0 % 7,746 46,793 46,156 10/2/2017 1989 80 Crossways II Chesapeake, VA 1 Non-Government 84,799 53.2 % 1,080 10,231 10,116 10/2/2017 1989 81 Greenbrier Circle Corporate Center Chesapeake, VA 2 Non-Government 232,671 94.6 % 3,684 19,644 19,391 10/2/2017 1981 82 Greenbrier Technology Center I Chesapeake, VA 1 Non-Government 97,194 77.5 % 1,223 8,616 8,515 10/2/2017 1987 83 Greenbrier Technology Center II Chesapeake, VA 1 Non-Government 82,229 100.0 % 1,456 7,668 7,575 10/2/2017 1987 84 Greenbrier Towers Chesapeake, VA 2 Non-Government 171,762 98.1 % 3,377 14,850 14,662 10/2/2017 1985 85 Enterchange at Meadowville Chester, VA 1 U.S. Government 228,108 100.0 % 1,537 11,355 10,233 8/28/2013 2011 86 Three Flint Hill Fairfax, VA 1 Non-Government 183,529 76.5 % 4,504 31,857 31,430 10/2/2017 2011 87 3920 Pender Drive Fairfax, VA 1 U.S. Government 83,130 100.0 % 2,502 15,815 14,530 3/21/2014 2011 88 Pender Business Park Fairfax, VA 4 State 171,061 95.3 % 3,990 24,156 21,727 11/4/2013 2000 89 7987 Ashton Avenue Manassas, VA 1 Other Government 69,374 100.0 % 1,654 10,148 9,882 1/3/2017 1989 90 Gateway II Norfolk, VA 1 Non-Government 42,997 80.7 % 449 2,804 2,778 10/2/2017 1984 91 Norfolk Business Center Norfolk, VA 1 Non-Government 90,267 80.3 % 1,086 7,564 7,474 10/2/2017 1985 92 Norfolk Commerce Park II Norfolk, VA 1 Non-Government 129,411 100.0 % 2,103 13,868 13,715 10/2/2017 1990 93 1759 & 1760 Business Center Drive Reston, VA 2 U.S. Government 406,388 100.0 % 12,322 90,138 82,434 5/28/2014 1996 94 1775 Wiehle Avenue Reston, VA 1 Non-Government 129,982 81.9 % 4,181 30,320 29,993 10/2/2017 2001 95 9960 Mayland Drive Richmond, VA 1 State 173,932 94.4 % 3,338 20,435 18,760 5/20/2014 1994 96 Aquia Commerce Center Stafford, VA 2 U.S. Government 64,656 100.0 % 1,843 10,285 8,917 6/22/2011 1997 97 Atlantic Corporate Park Sterling, VA 2 U.S. Government 220,995 96.6 % 6,050 35,112 34,746 10/2/2017 2008 98 Sterling Business Park Lots 8 and 9 Sterling, VA 1 U.S. Government 167,440 100.0 % 5,504 53,502 52,948 10/2/2017 2016 99 Sterling Park Business Center Sterling, VA 7 Non-Government 475,738 97.9 % 6,523 40,434 40,125 10/2/2017 2011 100 65 Bowdoin Street S. Burlington, VT 1 U.S. Government 26,609 100.0 % 1,118 9,236 7,526 4/9/2010 2009 101 840 North Broadway Everett, WA 2 State 111,908 100.0 % 2,676 20,669 18,019 6/28/2012 1990 102 Stevens Center Richland, WA 2 U.S. Government 140,152 100.0 % 2,958 23,440 14,097 3/31/1997 1995 103 11050 West Liberty Drive Milwaukee, WI 1 U.S. Government 29,297 100.0 % 801 5,587 4,795 6/9/2011 2006 104 882 TJ Jackson Drive Falling Waters, WV 1 Vacant 40,348 — % — 5,062 2,926 3/31/1997 1993 105 5353 Yellowstone Road Cheyenne, WY 1 U.S. Government 106,107 100.0 % 2,156 10,682 6,189 3/31/1997 1995 Total 164 17,185,541 420,650 2,936,733 2,583,404 Held for Sale (4) 106 711 S 14th Avenue Safford, AZ 1 U.S. Government 36,139 94.4 % 913 7,753 7,753 6/16/2010 1992 107 9800 Goethe Road Sacramento, CA 1 State 110,500 100.0 % 2,617 9,284 9,284 12/23/2009 1993 2 146,639 3,530 17,037 17,037 Grand Total 166 17,332,180 94.4 % $ 424,180 $ 2,953,770 $ 2,600,441