The property is 80 percent leased by the federal government under a modified gross lease that expires on August 31, 2014. The remainder of the office space, approximately 15,000 square feet, is currently vacant and the subject of the earn-out conditions referred to above. The General Services Administration (GSA) lease provides for annual gross rent of approximately $2.6 million, which is the straight-lined rent amount. The GSA lease gross rent starts at $2.4 million and increases in the fourth and seventh years. The anticipated operating expenses for the property are approximately $1.5 million, which includes $720,000 for depreciation and amortization and $15,000 for reserves. As part of the acquisition, a mortgage for $16.7 million was assumed. The mortgage bears interest at a fixed rate of 6.75 percent p.a., requires monthly principal and interest payments, and matures in 2026.
This FDA building is a newly constructed, three-story building that was placed in service on September 1, 2004. The FDA office and laboratory space and the vacant space total approximately 79,000 rentable square feet. The building is located within the greater metropolitan Washington, D.C., area with close proximity to the University of Maryland, and is easily accessible via major highways, arteries and the Metrorail.
About Government Properties Trust, Inc.
Government Properties Trust, Inc. invests primarily in single tenant properties under long-term leases to the U.S. government. Government Properties Trust, Inc. is a self-managed, self-administered real estate investment trust, or REIT. The company is located at 10250 Regency Circle, Suite 100, Omaha, NE 68114.
This press release contains forward-looking statements. These forward- looking statements can be identified by the use of words such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "continue," or the negative of such terms, or other comparable terminology. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements.
Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including the fact that our management only recently joined us; we must invest the proceeds of our recent IPO on acceptable terms and timeframes; we depend on the U.S. government for a significant portion of our revenues; our properties may have a higher risk of terrorist attack because the U.S. government is our principal tenant; we plan to use debt to finance, on average, approximately 75% of the acquisition cost of the properties we buy; some of our leases may not provide for a full pass-through of increases in property operating costs; we may make distributions that include a return of capital as well as the other the risks discussed from time to time in our SEC filings.
All forward-looking statements included in this press release are based on information available to us on the date hereof. We assume no obligation to update any forward-looking statements.
For additional information, please visit the Government Properties Trust, Inc.
Web site at http://www.gptrust.com/ .
CONTACT: Investor Relations, Sharon Latham of Government Properties
Trust, Inc., +1-402-391-0010 Ext. 207; or General Inquiries, Marilyn Windsor,
+1-702-515-1260, or Analyst Inquiries, Diane Hettwer, +1-312-640-6760, both of
Financial Relations Board
Web site: http://www.gptrust.com/