HRPT Properties Trust (HRP, Financial) filed Quarterly Report for the period ended 2009-03-31.
HRPT Properties Trust is a real estate investment trust that owns and leases office buildings. The company's business strategy is to invest in high quality office buildings leased to strong credit tenants with long-term leases. HRPT Properties Trust has a market cap of $1.07 billion; its shares were traded at around $4.77 with a P/E ratio of 4.5 and P/S ratio of 1.3. The dividend yield of HRPT Properties Trust stocks is 10%. HRPT Properties Trust had an annual average earning growth of 1% over the past 10 years. GuruFocus rated HRPT Properties Trust the business predictability rank of 2-star.
In May 2008, we entered into a series of agreements to sell 48 medical office, clinic and biotech laboratory buildings to Senior Housing for an aggregate purchase price of approximately $565.0 million. To date, we have sold 38 of these properties containing 1,595,000 square feet of space for approximately $366.0 million, excluding closing costs, and recognized gains totaling $145.9 million. One of the remaining buildings with an allocated value of $3.0 million is no longer subject to the agreement for sale. We expect the closings of the remaining nine buildings to occur in 2010. We and Senior Housing may mutually agree to accelerate the closings of these acquisitions. In addition, Senior Housing acquired rights of first refusal from us to purchase any of 45 additional buildings (containing approximately 4,598,000 square feet of rental space) that are leased to tenants in medical related businesses which we will continue to own after these transactions. Senior Housing was formerly our subsidiary, and both we and Senior Housing are managed by RMR. Because we and Senior Housing are both managed by RMR, the terms of these transactions were negotiated by special committees of our and Senior Housings boards of trustees composed solely of independent trustees who were not also independent trustees of both companies.
In March 2009, we purchased $8.0 million of marketable certificates which are backed by our mortgage notes payable due January 2011, for $6.8 million. We classify these certificates as investments held to maturity rather than available for sale or trading because we have the intent and ability to hold these certificates until maturity. These certificates are included in other assets in our condensed consolidated balance sheet as of March 31, 2009. These certificates had an estimated fair market value of $6.0 million as of March 31, 2009.
In March 2009, we repurchased and retired $31.8 million of our floating rate senior notes due 2011, for $24.2 million, excluding accrued interest, and recognized a gain on early extinguishment of debt of $7.5 million, net of unamortized deferred financing fees.
As of May 7, 2009, we repurchased and retired $49.3 million of our 6.95% senior notes due 2012 for $41.5 million, $9.0 million of our 6.50% senior notes due 2013 for $7.3 million, $5.3 million of our 5.75% senior notes due 2014 for $4.3 million, and $4.0 million of our 6.40% senior notes due 2015 for $2.8 million, using cash on hand and borrowings under our revolving credit facility. In connection with these transactions, we expect to recognize gains of approximately $11.5 million, net of unamortized discounts and deferred financing fees during the second quarter of 2009.
In April 2009, our wholly owned subsidiary, GOV, entered into a new $250.0 million secured credit facility with a group of commercial banks. The maturity date of this facility is April 24, 2012, and we have the option to extend the facility, subject to certain conditions, for one year to April 24, 2013. Interest under the facility is generally set at LIBOR, subject to a floor, plus a spread which varies depending on the amount of debt leverage at the borrower subsidiary. The initial interest rate applicable to the loan is 5.25%. The $250.0 million proceeds of this credit facility were distributed to us and used by us to repay amounts outstanding under our existing unsecured revolving credit facility.
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HRPT Properties Trust is a real estate investment trust that owns and leases office buildings. The company's business strategy is to invest in high quality office buildings leased to strong credit tenants with long-term leases. HRPT Properties Trust has a market cap of $1.07 billion; its shares were traded at around $4.77 with a P/E ratio of 4.5 and P/S ratio of 1.3. The dividend yield of HRPT Properties Trust stocks is 10%. HRPT Properties Trust had an annual average earning growth of 1% over the past 10 years. GuruFocus rated HRPT Properties Trust the business predictability rank of 2-star.
Highlight of Business Operations:
During the three months ended March 31, 2009, we signed new leases for 190,000 square feet and lease renewals for 755,000 square feet, at weighted average rental rates that were 6% above rents previously charged for the same space. Average lease terms for leases signed during the three months ended March 31, 2009, were 5.0 years. Commitments for tenant improvement and leasing costs for leases signed during the three months ended March 31, 2009, totaled $6.7 million, or $7.12 per square foot (approximately $1.42/sq. ft. per year of the lease term).In May 2008, we entered into a series of agreements to sell 48 medical office, clinic and biotech laboratory buildings to Senior Housing for an aggregate purchase price of approximately $565.0 million. To date, we have sold 38 of these properties containing 1,595,000 square feet of space for approximately $366.0 million, excluding closing costs, and recognized gains totaling $145.9 million. One of the remaining buildings with an allocated value of $3.0 million is no longer subject to the agreement for sale. We expect the closings of the remaining nine buildings to occur in 2010. We and Senior Housing may mutually agree to accelerate the closings of these acquisitions. In addition, Senior Housing acquired rights of first refusal from us to purchase any of 45 additional buildings (containing approximately 4,598,000 square feet of rental space) that are leased to tenants in medical related businesses which we will continue to own after these transactions. Senior Housing was formerly our subsidiary, and both we and Senior Housing are managed by RMR. Because we and Senior Housing are both managed by RMR, the terms of these transactions were negotiated by special committees of our and Senior Housings boards of trustees composed solely of independent trustees who were not also independent trustees of both companies.
In March 2009, we purchased $8.0 million of marketable certificates which are backed by our mortgage notes payable due January 2011, for $6.8 million. We classify these certificates as investments held to maturity rather than available for sale or trading because we have the intent and ability to hold these certificates until maturity. These certificates are included in other assets in our condensed consolidated balance sheet as of March 31, 2009. These certificates had an estimated fair market value of $6.0 million as of March 31, 2009.
In March 2009, we repurchased and retired $31.8 million of our floating rate senior notes due 2011, for $24.2 million, excluding accrued interest, and recognized a gain on early extinguishment of debt of $7.5 million, net of unamortized deferred financing fees.
As of May 7, 2009, we repurchased and retired $49.3 million of our 6.95% senior notes due 2012 for $41.5 million, $9.0 million of our 6.50% senior notes due 2013 for $7.3 million, $5.3 million of our 5.75% senior notes due 2014 for $4.3 million, and $4.0 million of our 6.40% senior notes due 2015 for $2.8 million, using cash on hand and borrowings under our revolving credit facility. In connection with these transactions, we expect to recognize gains of approximately $11.5 million, net of unamortized discounts and deferred financing fees during the second quarter of 2009.
In April 2009, our wholly owned subsidiary, GOV, entered into a new $250.0 million secured credit facility with a group of commercial banks. The maturity date of this facility is April 24, 2012, and we have the option to extend the facility, subject to certain conditions, for one year to April 24, 2013. Interest under the facility is generally set at LIBOR, subject to a floor, plus a spread which varies depending on the amount of debt leverage at the borrower subsidiary. The initial interest rate applicable to the loan is 5.25%. The $250.0 million proceeds of this credit facility were distributed to us and used by us to repay amounts outstanding under our existing unsecured revolving credit facility.
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