NEWTON, Mass.--(BUSINESS WIRE)-- HRPT Properties Trust (NYSE: HRP) today announced financial results for the quarter and six months ended June 30, 2009.

Results for the quarter ended June 30, 2009:

Net income available for common shareholders was $46.9 million for the quarter ended June 30, 2009, compared to $55.4 million for the same quarter last year. Net income available for common shareholders per share, basic and diluted, (EPS) for the quarters ended June 30, 2009 and 2008 was $0.21 and $0.25, respectively. Net income for the quarter ended June 30, 2009 includes $20.3 million, or $0.09 per share, of gain on sale of properties and $13.2 million, or $0.06 per share, of gain on early extinguishment of debt. Net income for the quarter ended June 30, 2008 includes $40.0 million, or $0.18 per share, of gain on sale of properties.

Funds from operations (FFO) available for common shareholders for the quarter ended June 30, 2009 was $63.9 million, or $0.29 and $0.28 per share basic and diluted, respectively, compared to FFO available for common shareholders for the quarter ended June 30, 2008 of $64.1 million, or $0.28 per share basic and diluted.

The weighted average number of basic and diluted common shares outstanding totaled 223,696,703 and 252,889,361, respectively, for the quarter ended June 30, 2009, and 225,448,673 and 254,641,331, respectively, for the quarter ended June 30, 2008.

Results for the six months ended June 30, 2009:

Net income available for common shareholders was $77.4 million for the six months ended June 30, 2009, compared to $70.1 million for the same period last year. Net income available for common shareholders per share, basic and diluted, (EPS) for the six months ended June 30, 2009 and 2008 was $0.34 and $0.31, respectively. Net income for the six months ended June 30, 2009 includes $29.1 million, or $0.13 per share, of gain on sale of properties and $20.7 million, or $0.09 per share, of gain on early extinguishment of debt. Net income for the six months ended June 30, 2008 includes $40.0 million, or $0.18 per share, of gain on sale of properties.

Funds from operations (FFO) available for common shareholders for the six months ended June 30, 2009 was $126.7 million, or $0.56 and $0.55 per share basic and diluted, respectively, compared to FFO available for common shareholders for the six months ended June 30, 2008 of $127.2 million, or $0.56 and $0.55 per share basic and diluted, respectively.

The weighted average number of basic and diluted common shares outstanding totaled 224,652,791 and 253,845,449, respectively, for the six months ended June 30, 2009, and 225,446,585 and 254,639,243, respectively, for the six months ended June 30, 2008.

Occupancy and Leasing Results (excluding properties classified in discontinued operations):

As of June 30, 2009, 89.1% of HRP's total square feet was leased, compared to 89.5% as of March 31, 2009 and 90.9% as of June 30, 2008.

HRP signed lease renewals for 992,000 square feet and new leases for 650,000 square feet during the quarter ended June 30, 2009, for weighted average rental rates that were 2% below prior rents for the same space. Average lease terms for leases signed during the second quarter of 2009 were 7.7 years. Commitments for tenant improvement and leasing commission (TI/LC) costs for leases signed during the quarter ended June 30, 2009 totaled $13.25 per square foot on a weighted average basis.

Investing Activities:

During the second quarter of 2009, HRP acquired one office property with 670,000 square feet of space for $134.3 million, excluding closing costs and one industrial property with 645,000 square feet of space for $34.0 million, excluding closing costs. HRP also sold two properties during the second quarter of 2009 with 193,000 square feet of space for $50.8 million, excluding closing costs, and realized a gain on sale of properties of $20.3 million.

Financing Activities:

During the second quarter of 2009, HRP repurchased and retired $77.7 million face amount of its publicly issued debt securities for $64.0 million and realized a gain on early extinguishment of debt of $13.2 million, net of unamortized issuance costs and discounts.

During April 2009, HRP transferred 29 properties with 3.3 million square feet to its wholly owned subsidiary, Government Properties Income Trust, or GOV, a real estate investment trust that owns properties that are majority leased to government tenants. Also in April 2009, GOV entered into a new $250 million secured credit facility with a group of commercial banks. The $250 million proceeds of this credit facility were distributed by GOV to HRP and used to repay amounts outstanding under HRP's revolving credit facility. In June 2009, GOV completed an initial public offering of 11.5 million common shares and became a separate public company. Simultaneous with the closing of the GOV IPO, the $250 million secured credit facility was transferred to GOV and is no longer an obligation of HRP's. HRP continues to own 9.95 million common shares, or 46.4%, of GOV with a book carrying value of $153.1 million and a market value of $204.3 million as of June 30, 2009.

In January 2009, HRP announced that its Board authorized a buy back program for up to $100 million of common shares during 2009. Through June 30, 2009 HRP has purchased 4,050,000 common shares at an average price of $3.57/share. HRP has not repurchased any additional shares since June 30 through today. Although this repurchase authority has not been rescinded, in view of the recent increases in the trading prices of common shares of REITs, including HRP, and the continuation of restrictive conditions in the debt markets, it now appears that HRP may not spend the full authorized amount for common share purchases before the end of 2009, unless capital market conditions change.

Conference Call:

On Tuesday, August 11, 2009, at 10:00 a.m. Eastern Time, Adam Portnoy, Managing Trustee, and John Popeo, Chief Financial Officer, will host a conference call to discuss the second quarter 2009 results.

The conference call telephone number is (888) 632-5009. Participants calling from outside the United States and Canada should dial (913) 312-0388. No pass code is necessary to access either call. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 1:00 p.m. Eastern Time on Tuesday, August 18, 2009. To hear the replay, dial (719) 457-0820. The replay pass code is 9325774.

A live audio webcast of the conference call will also be available in a listen only mode on HRP's web site, which is located at www.hrpreit.com. Participants wanting to access the webcast should visit HRP's web site about five minutes before the call. The archived webcast will be available for replay on HRP's web site for about one week after the call.

Supplemental Data:

A copy of HRP's Second Quarter 2009 Supplemental Operating and Financial Data is available for download at HRP's web site, www.hrpreit.com.

HRPT Properties Trust is a real estate investment trust, or REIT, which primarily owns office and industrial buildings located throughout the United States. As of June 30, 2009, HRP owned 512 operating properties with 65.3 million square feet, including approximately 17 million square feet of leased industrial and commercial lands in Oahu, Hawaii. HRP is headquartered in Newton, Massachusetts.

Please see the pages attached hereto for a more detailed statement of our operating results and financial condition, along with an explanation of our calculation of FFO. HRP's web site is not incorporated as part of this press release.

WARNING REGARDING FORWARD LOOKING STATEMENTS

THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON HRP'S PRESENT BELIEFS AND EXPECTATIONS, BUT THEY ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. FOR EXAMPLE:

    --  THIS PRESS RELEASE STATES THAT HRP HAS REPURCHASED SOME OF ITS EQUITY
        AND DEBT SECURITIES. THE IMPLICATIONS OF THIS STATEMENT MAY BE THAT HRP
        WILL CONTINUE TO REPURCHASE ITS EQUITY AND DEBT SECURITIES. IN FACT, HRP
        HAS REPURCHASED ITS SECURITIES ON AN OPPORTUNISTIC BASIS, WHEN
        OPPORTUNITIES TO DO SO HAVE BEEN AVAILABLE AT PRICES HRP BELIEVES ARE
        ATTRACTIVE AND HRP HAS AVAILABLE FINANCIAL RESOURCES. HRP MAY
        ACCELERATE, DELAY, DISCONTINUE OR RESTART MAKING SUCH PURCHASES AT ANY
        TIME, IN ITS DISCRETION.

RESULTS DIFFERENT FROM THOSE STATED OR IMPLIED BY FORWARD LOOKING STATEMENTS MAY OCCUR FOR MANY DIFFERENT REASONS, SOME OF WHICH, LIKE CHANGES IN THE PRICES OF THE SECURITIES AVAILABLE FOR PURCHASE, MAY BE AT MOST ONLY PARTIALLY WITHIN HRP'S CONTROL, AND SOME OF WHICH, SUCH AS CHANGES IN FINANCIAL MARKET CONDITIONS GENERALLY, ARE BEYOND HRP'S CONTROL.

INVESTORS SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS AND THEIR IMPLICATIONS IN THIS PRESS RELEASE.

EXCEPT AS REQUIRED BY LAW, HRP DOES NOT ASSUME ANY OBLIGATIONS TO UPDATE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, CHANGED CIRCUMSTANCES, FUTURE EVENTS OR OTHERWISE.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the New York Stock Exchange. No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

HRPT Properties Trust

Consolidated Statements of Income and Funds from Operations

(amounts in thousands, except per share data)

                               Quarter Ended June 30,  Six Months Ended June 30,

                               2009        2008        2009        2008

Rental income                  $212,729    $204,273    $429,652    $405,445

Expenses:

Operating expenses             86,686      83,747      178,425     164,964

Depreciation and amortization  49,604      45,228      97,994      90,041

General and administrative     9,792       8,991       19,279      17,853

Acquisition costs              489         --          748         --

Total expenses                 146,571     137,966     296,446     272,858

Operating income               66,158      66,307      133,206     132,587

Interest income                363         89          508         418

Interest expense (including
amortization of debt
discounts, premiums and        (44,267  )  (44,383  )  (88,126  )  (89,423  )
deferred financing fees of
$1,886, $1,431, $3,528 and
$2,526, respectively)

Gain on early extinguishment   13,173      --          20,686      --
of debt

Equity in earnings of equity   861         --          861         --
investments

Income from continuing
operations before income tax   36,288      22,013      67,135      43,582
expense

Income tax (expense) benefit   (190     )  4           (342     )  (160     )

Income from continuing         36,098      22,017      66,793      43,422
operations

Discontinued operations:

Income from discontinued       3,212       6,068       6,884       12,069
operations

Gain on sale of properties     20,306      39,967      29,051      39,967

Net income                     59,616      68,052      102,728     95,458

Preferred distributions        (12,667  )  (12,667  )  (25,334  )  (25,334  )

Net income available for       $46,949     $55,385     $77,394     $70,124
common shareholders

Calculation of Funds from
Operations, or FFO (1):

Net income                     $59,616     $68,052     $102,728    $95,458

Plus: depreciation and
amortization from continuing   49,604      45,228      97,994      90,041
operations

Plus: depreciation and
amortization from              (11      )  3,454       --          7,004
discontinued operations

Plus: acquisition costs (2)    489         --          748         --

Plus: FFO from equity          1,170       --          1,170       --
investments

Less: gain on early            (13,173  )  --          (20,686  )  --
extinguishment of debt

Less: gain on sale of          (20,306  )  (39,967  )  (29,051  )  (39,967  )
properties

Less: equity in earnings of    (861     )  --          (861     )  --
equity investments

FFO                            76,528      76,767      152,042     152,536

Less: preferred distributions  (12,667  )  (12,667  )  (25,334  )  (25,334  )

FFO available for common       $63,861     $64,100     $126,708    $127,202
shareholders

Weighted average common        223,697     225,449     224,653     225,447
shares outstanding - basic

Weighted average common
shares outstanding - diluted   252,890     254,642     253,846     254,640
(3)

Per common share:

Income from continuing
operations available for       $0.10       $0.04       $0.18       $0.08
common shareholders - basic
and diluted

Income from discontinued
operations - basic and         $0.11       $0.20       $0.16       $0.23
diluted

Net income available for
common shareholders - basic    $0.21       $0.25       $0.34       $0.31
and diluted

FFO available for common       $0.29       $0.28       $0.56       $0.56
shareholders - basic

FFO available for common       $0.28       $0.28       $0.55       $0.55
shareholders - diluted

Common distributions paid      $0.12       $0.21       $0.24       $0.42

HRPT Properties Trust

Consolidated Statements of Income and Funds from Operations

(amounts in thousands, except per share data)

(1) We compute FFO as shown in the calculations above. Our calculations of FFO
differ from the National Association of Real Estate Investment Trusts, or
NAREIT, definition because we exclude acquisition costs as described in Note 2
below, gain on early extinguishment of debt and loss on early extinguishment of
debt unless settled in cash. We consider FFO to be an appropriate measure of
performance for a REIT, along with net income and cash flow from operating,
investing and financing activities. We believe that FFO provides useful
information to investors because by excluding the effects of certain historical
amounts, such as depreciation expense and gains or losses on sales of
depreciated operating properties, FFO can facilitate a comparison of operating
performance between periods and among REITs. FFO does not represent cash
generated by operating activities in accordance with generally accepted
accounting principles, or GAAP, and should not be considered an alternative to
net income or cash flow from operating activities as a measure of financial
performance or liquidity. Also, some REITs may calculate FFO differently than
us.

(2) Acquisition costs have been expensed under Statement of Financial Accounting
Standards No. 141(R), "Business Combinations" since January 1, 2009.

(3) As of June 30, 2009, our 15,180 outstanding series D preferred shares were
convertible into 29,193 common shares. The effect of a conversion of our series
D convertible preferred shares on income from continuing operations available
for common shareholders per share is anti-dilutive to income, but dilutive to
FFO for the quarters and six months ended June 30, 2009 and 2008. Set forth
below is the calculation of diluted net income available for common
shareholders, diluted FFO available for common shareholders and diluted weighted
average common shares outstanding.

                                            Quarter Ended     Six Months Ended
                                            June 30,          June 30,

                                            2009     2008     2009      2008

Net income available for common             $46,949  $55,385  $77,394   $70,124
shareholders

Add - Series D convertible preferred        6,167    6,167    12,334    12,334
distributions

Net income available for common             $53,116  $61,552  $89,728   $82,458
shareholders - diluted

FFO available for common shareholders       $63,861  $64,100  $126,708  $127,202

Add - Series D convertible preferred        6,167    6,167    12,334    12,334
distributions

FFO available for common shareholders -     $70,028  $70,267  $139,042  $139,536
diluted

Weighted average common shares outstanding  223,697  225,449  224,653   225,447
- basic

Effect of dilutive Series D preferred       29,193   29,193   29,193    29,193
shares

Weighted average common shares outstanding  252,890  254,642  253,846   254,640
- diluted

HRPT Properties Trust

Consolidated Balance Sheets

(amounts in thousands, except share data)

                                                    June 30,      December 31,

                                                    2009          2008

                                                                  (audited)

ASSETS

Real estate properties:

Land                                                $1,200,934    $1,220,554

Buildings and improvements                          4,768,406     5,021,703

                                                    5,969,340     6,242,257

Accumulated depreciation                            (823,527   )  (862,958   )

                                                    5,145,813     5,379,299

Properties held for sale                            105,234       145,849

Acquired real estate leases, net                    157,428       164,308

Equity investments                                  158,053       -

Cash and cash equivalents                           38,138        15,518

Restricted cash                                     8,993         10,837

Rents receivable, net of allowance for doubtful     188,512       196,839
accounts of $8,351 and $8,492, respectively

Other assets, net                                   123,919       103,449

Total assets                                        $5,926,090    $6,016,099

LIABILITIES AND SHAREHOLDERS' EQUITY

Revolving credit facility                           $201,000      $201,000

Senior unsecured debt, net                          2,132,795     2,241,225

Mortgage notes payable, net                         443,908       447,693

Other liabilities related to properties held for    2,987         3,400
sale

Accounts payable and accrued expenses               101,886       99,285

Acquired real estate lease obligations, net         46,989        47,839

Rent collected in advance                           27,486        26,537

Security deposits                                   21,375        17,935

Due to affiliates                                   17,705        10,073

Total liabilities                                   2,996,131     3,094,987

Shareholders' equity:

Preferred shares of beneficial interest, $0.01 par
value:

50,000,000 shares authorized;

Series B preferred shares; 8 3/4% cumulative
redeemable at par on or after September 12, 2007;   169,079       169,079
7,000,000 shares issued and outstanding, aggregate
liquidation preference $175,000

Series C preferred shares; 7 1/8% cumulative
redeemable at par on or after February 15, 2011;    145,015       145,015
6,000,000 shares issued and outstanding, aggregate
liquidation preference $150,000

Series D preferred shares; 6 1/2% cumulative
convertible; 15,180,000 shares issued and           368,270       368,270
outstanding, aggregate liquidation preference
$379,500

Common shares of beneficial interest, $0.01 par
value:

350,000,000 shares authorized; 223,708,241 and
227,731,938 shares issued and outstanding,          2,237         2,277
respectively

Additional paid in capital                          2,923,649     2,937,986

Cumulative net income                               2,174,982     2,072,254

Cumulative common distributions                     (2,496,011 )  (2,441,841 )

Cumulative preferred distributions                  (357,262   )  (331,928   )

Total shareholders' equity                          2,929,959     2,921,112

Total liabilities and shareholders' equity          $5,926,090    $6,016,099

    Source: HRPT Properties Trust