Government Properties Income Trust has a market cap of $1.07 billion; its shares were traded at around $26.34 with a P/E ratio of 14.7 and P/S ratio of 13.5. The dividend yield of Government Properties Income Trust stocks is 6.2%.Mutual Fund and Other Gurus that owns GOV: John Keeley of Keeley Fund Management.
Highlight of Business Operations:The aggregate market value of the voting common shares of the registrant held by non-affiliates was $543,374,392 based on the $25.52 closing price per common share for such stock on the New York Stock Exchange on June 30, 2010. For purposes of this calculation, there were 21,750 common shares, held directly or by affiliates of the trustees and the officers of the registrant, and 9,950,000 common shares held by CommonWealth REIT, included in the number of common shares held by affiliates.
The Company. We were organized as a real estate investment trust, or REIT, under Maryland law in February, 2009 as a wholly owned subsidiary of CommonWealth REIT, or CWH. CWH is a REIT listed on the New York Stock Exchange, or the NYSE, which owns office and industrial properties with a historical cost of over $6.9 billion. We were organized to concentrate the ownership of certain CWH properties that are majority leased to government tenants and to expand such investments. In April, 2009, we acquired 100% ownership of the properties that we owned at the time of our initial public offering, or IPO, by means of a contribution from CWH to one of our subsidiaries. During 2009 and 2010, we issued an aggregate of 30,475,000 of our common shares of beneficial interest, $0.01 par value per share, or Shares, in three public offerings. CWH currently owns 24.6% of our outstanding Shares.
As of December 31, 2010, we owned 55 properties for a total investment of approximately $1.0 billion at cost, and a depreciated book value of $846.4 million. These 55 properties have approximately 6.8 million rentable square feet.
Financing Policies. To qualify for taxation as a REIT under the Internal Revenue Code of 1986, as amended, or the IRC, we must distribute at least 90% of our annual REIT taxable income and satisfy a number of organizational and operational requirements. Accordingly, we generally will not be able to retain sufficient cash from operations to repay debts, invest in properties or fund acquisitions. Instead, we expect to repay our debts, invest in our properties and fund acquisitions by borrowing and issuing equity securities. After our IPO, our growth was initially financed by borrowings under a $250 million secured revolving credit facility. We replaced our secured revolving credit facility in October 2010 with a $500 million unsecured revolving credit facility, or our unsecured revolving credit facility. As we utilize our unsecured revolving credit facility, we expect to refinance, or reduce amounts outstanding under, this facility with term debt or equity issuances. We will decide when and whether to issue new debt or equity depending upon market conditions. Because our ability to raise capital may depend, in large part, upon market conditions, we can provide you no assurance that we will be able to raise sufficient capital to repay our debt or to fund our growth strategy.
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