NEWTON, Mass.--(BUSINESS WIRE)--July 7, 2004--HRPT Properties Trust (NYSE: HRP) today announced that it has raised its quarterly rate of common share dividends by 5% to $.21/share per quarter.

HRPT's common share dividend rate has been at $0.20/share per quarter since July 2000. HRPT explained that its Board's decision to raise the common share dividend rate was primarily the result of three factors:

    --  First, HRPT's purchase of the Damon Estate lands in Hawaii,
        which are 99% leased for an average of 22 years, has improved
        the stability of HRPT's future cash flows.

    --  Second, HRPT has recently agreed to several acquisitions which
        are likely to be accretive to earnings. The largest of these
        transactions is HRPT's agreement to purchase Hallwood Realty
        Partners LP (AMEX: HRY). The Hallwood purchase for
        approximately $430 million involves 5.2 million sq. ft. of
        office and industrial properties and is expected to close
        later this month.

    --  Third, the national leasing markets for office and industrial
        space seems to be improving coincident with improvements in
        the U.S. economy. HRPT's largest market areas in Philadelphia,
        PA, and Washington, DC, are experiencing continuing demand for
        space; and HRPT's smaller, more challenged market areas in
        Austin, TX, and Boston, MA, seem no longer to be experiencing
        occupancy or rent declines. For example, since year end 2003,
        HRPT entered a new lease in Wilmington, DE for 180,000 sq. ft.
        with ING Bank, a new lease in Philadelphia, PA for 209,000 sq.
        ft. with Sunoco, Inc. and new leases with Beth Israel
        Hospital, Dana Farber Cancer Center and Joslin Diabetes Center
        for 112,000 sq. ft. in one of HRPT's Longwood Medical Area
        office buildings in Boston, MA, as well as other new leases
        and renewals.

HRPT's next quarterly dividend of $0.21/share will be paid to shareholders of record at the close of share trading on July 23, 2004, and it will be distributed on or about August 25, 2004.

HRPT Properties Trust is a real estate investment trust headquartered in Newton, MA. HRPT owns a nationwide portfolio of office and industrial properties containing approximately 37 million sq. ft. of buildings and industrial lands.

WARNING REGARDING FORWARD LOOKING STATEMENTS

THE FOREGOING PRESS RELEASE INCLUDES FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND THE FEDERAL SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON HRPT'S PRESENT BELIEFS AND EXPECTATIONS, BUT THEY ARE NOT GUARANTEED TO OCCUR. SOMETIMES FORWARD LOOKING STATEMENTS MAY NOT OCCUR BECAUSE OF CONTINGENCY FACTORS OF WHICH HRPT IS CURRENTLY AWARE, AND SOMETIMES FORWARD LOOKING STATEMENTS MAY NOT OCCUR BECAUSE OF FACTORS OF WHICH HRPT IS NOT CURRENTLY AWARE OR WHICH ARE BEYOND HRPT'S CONTROL. FOR EXAMPLE:

    --  THE FACT THAT HRPT HAS RAISED ITS COMMON SHARE DIVIDEND RATE
        BY 5% TO $0.21/SHARE MAY IMPLY THAT HRPT WILL CONTINUE TO PAY
        $0.21/SHARE PER QUARTER OR AGAIN RAISE ITS DIVIDEND RATE IN
        THE FUTURE. HRPT'S DIVIDEND RATE IS SET QUARTERLY BY HRPT'S
        BOARD OF TRUSTEES. AMONG OTHER FACTORS CONSIDERED WHEN
        ESTABLISHING A QUARTERLY DIVIDEND RATE, HRPT'S BOARD CONSIDERS
        HISTORICAL AND PROJECTED INCOME AND EXPENSES. CHANGES IN THESE
        FACTORS OR OTHER REASONS MAY CAUSE HRPT'S BOARD NOT TO
        INCREASE FUTURE DIVIDENDS, TO LOWER FUTURE DIVIDENDS OR EVEN
        TO ELIMINATE FUTURE DIVIDENDS.

    --  THE FACT THAT HRPT RECENTLY PURCHASED A STABLE PORTFOLIO OF
        LEASED LAND IN HAWAII AND ENTERED LEASES FOR LARGE AMOUNTS OF
        SPACE WITH ING BANK, SUNOCO, INC. AND OTHER TENANTS MAY IMPLY
        THAT ALL HRPT'S FUTURE INCOME IS SECURE. IN FACT, HRPT OWNS A
        LARGE NATIONWIDE PORTFOLIO OF OVER 37 MILLION SQ.FT. WHICH IS
        APPROXIMATELY 93% OCCUPIED AS OF JUNE 30, 2004. OCCUPANCY
        CHANGES OR RENT REDUCTIONS AT ANY PROPERTIES OWNED BY HRPT MAY
        UNDERMINE THE STABILITY OF HRPT'S FUTURE INCOME.

    --  THIS PRESS RELEASE STATES THAT RECENT OR PENDING PURCHASES BY
        HRPT, INCLUDING THE PENDING PURCHASE OF HALLWOOD REALTY
        PARTNERS LP, ARE LIKELY TO BE ACCRETIVE TO HRPT'S EARNINGS.
        WHETHER PROPERTY PURCHASES ARE ACCRETIVE TO HRPT'S EARNING
        DEPENDS UPON THE FUTURE INCOME REALIZED FROM THE PURCHASED
        PROPERTIES LESS THE EXPENSES INCURRED AT THE PROPERTIES AND
        LESS THE COSTS OF CAPITAL TO MAKE THE PURCHASES AND INCREASES
        IN GENERAL AND ADMINISTRATIVE EXPENSES WHICH ARISE FROM THE
        PURCHASES. HRPT'S PROJECTED INCOME FROM RECENT AND PENDING
        PURCHASES MAY NOT BE REALIZED. RECENTLY, THE COSTS OF DEBT
        CAPITAL HAVE INCREASED AND MANY PEOPLE BELIEVE ALL CAPITAL
        COSTS MAY CONTINUE TO INCREASE FOR THE FORESEEABLE FUTURE.
        HRPT'S PENDING ACQUISITION OF HALLWOOD REALTY PARTNERS LP IS
        CONTINGENT UPON A FAVORABLE VOTE OF HALLWOOD REALTY PARTNERS
        UNIT HOLDERS. THERE ARE OTHER CONDITIONS TO THIS AND ALL
        PENDING ACQUISITIONS, AND THE PENDING ACQUISITIONS MAY NOT
        OCCUR. THERE ARE NUMEROUS OTHER FACTORS WHICH MAY CAUSE HRPT'S
        EXPECTATIONS REGARDING THE RESULT OF ITS RECENT AND PENDING
        ACQUISITIONS TO BE NOT ACCRETIVE.

    --  THIS PRESS RELEASE STATES THAT LEASING MARKETS FOR OFFICE AND
        INDUSTRIAL SPACE SEEM TO BE IMPROVING COINCIDENT WITH
        IMPROVEMENTS IN THE U.S. ECONOMY. IMPROVEMENTS IN ECONOMIC
        PRODUCTIVITY MAY CAUSE LEASING MARKET CONDITIONS NOT TO
        IMPROVE EVEN IF THE ECONOMY GENERALLY IMPROVES. CONTINUING
        ECONOMIC EXPANSION COULD CAUSE AN INCREASE IN NEW REAL ESTATE
        DEVELOPMENT WHICH WILL ADVERSELY AFFECT REAL ESTATE
        OCCUPANCIES AND RENTS. IMPROVEMENTS IN THE REAL ESTATE MARKET
        CONDITIONS ARE SOMETIMES DELAYED OR REVERSED BY GOVERNMENT
        SUBSIDIES FOR NEW CONSTRUCTION, AND SUCH SUBSIDIES ARE
        CURRENTLY BEING CONSIDERED FOR AN HRPT COMPETITOR IN THE
        PHILADELPHIA MARKET AREA. MOREOVER, ESPECIALLY SINCE SEPTEMBER
        11, 2001, WORLD EVENTS SUCH AS THE WAR ON TERRORISM OR
        ELECTIONS IN THIS COUNTRY OR ELSEWHERE SEEM TO HAVE HAD
        SIGNIFICANT IMPACTS UPON BUSINESS DECISIONS TO LEASE SPACE. A
        FUTURE TERRORIST ATTACK IN THE U.S. OR SOME OTHER WORLD EVENT
        MAY CAUSE A GENERAL SLOW DOWN IN THE ECONOMY AND IN REAL
        ESTATE LEASING MARKETS.

INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON ANY FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE.

    CONTACT: HRPT Properties Trust
             Adam D. Portnoy, 617-332-3990
             EVP
             or
             John C. Popeo, 617-332-3990
             CFO
             www.hrpreit.com

    SOURCE: HRPT Properties Trust