HRPT Properties Trust Announces Financial Results for the Quarter and Year Ended December 31, 2004

Business Wire, Feb 15, 2005

NEWTON, Mass. -- HRPT Properties Trust (NYSE: HRP) today announced financial results for the fourth quarter and year ended December 31, 2004.

Results for the quarter ended December 31, 2004:

Net income available for common shareholders was $30.5 million for the quarter ended December 31, 2004, compared to $23.7 million for the same quarter last year. Net income available for common shareholders per share (EPS) for the quarters ended December 31, 2004 and 2003 was $0.17 each.

Funds from operations (FFO) available for common shareholders for the quarter ended December 31, 2004, were $56.0 million, or $0.32 per share. This compares to FFO available for common shareholders for the quarter ended December 31, 2003, of $44.7 million, or $0.31 per share.

The weighted average number of common shares outstanding totaled 177,316,525 and 142,773,895, for the quarters ended December 31, 2004 and 2003, respectively.

Results for the year ended December 31, 2004:

Net income available for common shareholders was $116.8 million for the year ended December 31, 2004, compared to $68.4 million last year. EPS for the years ended December 31, 2004 and 2003 was $0.66 and $0.50, respectively.

FFO available for common shareholders for the year ended December 31, 2004, were $215.2 million, or $1.22 per share. This compares to FFO available for common shareholders for the year ended December 31, 2003, of $174.3 million, or $1.28 per share.

The weighted average number of common shares outstanding totaled 176,156,909 and 136,270,314, for the years ended December 31, 2004 and 2003, respectively.

Occupancy and Leasing Results:

As of December 31, 2004, 93.0% of HRP's total square feet was leased, compared to 93.5% leased as of December 31, 2003.

HRP signed new leases for 563,000 square feet and lease renewals for 869,000 square feet during the quarter ended December 31, 2004, for weighted average rental rates that were 1% above prior rents. HRP signed new leases for 1.7 million square feet and lease renewals for 2.8 million square feet during the year ended December 31, 2004, at weighted average rental rates that were 3% below prior rents.

Average lease terms for leases signed during the fourth quarter of 2004 were 8.9 years. Average lease terms for leases signed during the year ended December 31, 2004 were 8.7 years. Commitments for tenant improvement and leasing commission (TI/LC) costs for leases signed during the quarter ended December 31, 2004 totaled $30.82 per square foot on a weighted average basis. Commitments for TI/LC costs for leases signed during the year ended 2004 totaled $28.28 per square foot on a weighted average basis.

Investment Activities:

During the quarter ended December 31, 2004, HRP acquired nine buildings with 892,000 square feet for $84.3 million. HRP acquired 136 buildings with 8.3 million square feet for $818.3 million during the year ended December 31, 2004.

Also during the quarter ended December 31, 2004, HRP sold one million common shares of Senior Housing Properties Trust (SNH), a former subsidiary. After this sale, HRP owned 8.7 million SNH common shares, or 12.6% of SNH's total common shares outstanding at December 31, 2004. HRP sold a total of 4.1 million SNH common shares during the year ended December 31, 2004.

Financing Activities:

Subsequent to year end in January 2005, HRP amended its previously existing $560 million unsecured revolving credit facility. HRP increased the available borrowing amount to $750 million and extended the maturity date to April 2009, with an option to extend the maturity by one additional year. The annual interest payable for drawn amounts under the facility was reduced from LIBOR plus 0.80% to LIBOR plus 0.65%. Various other changes were made in the facility, and, in certain circumstances, the amount of unsecured borrowings available under this facility may be increased to $1.5 billion.

Conference Call:

On Tuesday, February 15, 2005, at 11:00 a.m. Eastern Time, Adam Portnoy, executive vice president, and John Popeo, chief financial officer, will host a conference call to discuss the results for the quarter and year ended December 31, 2004.

The conference call telephone number is (800) 811-7286. Participants calling from outside the United States and Canada should dial (913) 981-4902. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through February 22, 2005. To hear the replay, dial (719) 457-0820. The replay pass code is 7218426.

A live oral webcast of the conference call will also be available in a listen-only mode on HRP's web site. Participants wanting to access the webcast should visit the company'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 Fourth Quarter 2004 Supplemental Operating and Financial Data is available for download at HRP's web site.