10-Q Alert: New REIT Government Properties Income Trust Discusses Leases, Acquisitions
The following is culled from the most recent 10-Q from Government Properties Income Trust:
We own 30 properties located in 15 states and the District of Columbia containing approximately 3.6 million square feet. U.S. and state government agencies are our primary tenants. These condensed consolidated financial statements are presented as if we were a legal entity separate from HRPT Properties Trust, or HRP; although we did not exist until February 17, 2009 and thereafter we were a wholly owned consolidated subsidiary of HRP until June 8, 2009.
Note 5. Real Estate Properties
We generally lease space in our properties on a gross lease or modified gross lease basis pursuant to noncancelable, fixed term operating leases expiring between 2010 and 2020. These leases require us to pay all or some property operating expenses and to provide all or most property management services.
During the three months ended September 30, 2009, we executed one lease for 10,080 square feet and made a commitment for approximately $1,512 of leasing related costs. Committed but unspent tenant related obligations based on executed leases as of September 30, 2009, were approximately $727,000.
During August of 2009, we purchased one industrial property for $18.2 million, plus closing costs. We funded this transaction with cash on hand and by borrowing under our secured revolving credit facility. We allocated approximately $626,000 of our acquisition expenses to acquired real estate leases and approximately $522,000 to acquired real estate lease obligations.
In September 2009, we entered into an agreement to acquire a property for $36.5 million that contains 136,000 square feet of space that is leased to the U.S. Government. Pursuant to such agreement, as of September 30, 2009, we made a refundable deposit in the amount of $3.5 million, which has been included in other assets on our balance sheet. On October 29, 2009, the agreement with the seller was terminated and the deposit was refunded.
Related Links