HRPT Properties Trust Announces Results for the Periods Ended June 30, 2008

NEWTON, Mass.--(Business Wire)--
HRPT Properties Trust (NYSE: HRP) today announced financial
results for the quarter and six months ended June 30, 2008.

Results for the quarter ended June 30, 2008:

Net income available for common shareholders was $55.4 million for
the quarter ended June 30, 2008, compared to $16.1 million for the
same quarter last year. Net income available for common shareholders
per share, basic and diluted, (EPS) for the quarters ended June 30,
2008 and 2007 was $0.25 and $0.08, respectively. Net income for the
quarter ended June 30, 2008 includes a $40.0 million, or $0.18 per
share, gain on sale of properties.

Funds from operations (FFO) available for common shareholders for
the quarter ended June 30, 2008 was $64.1 million, or $0.28 per share
basic and diluted, compared to FFO available for common shareholders
for the quarter ended June 30, 2007 of $62.6 million, or $0.30 per
share basic and $0.29 per share diluted.

The weighted average number of basic and diluted common shares
outstanding totaled 225,448,673 and 254,641,331 respectively, for the
quarter ended June 30, 2008, and 211,720,711 and 240,913,369
respectively, for the quarter ended June 30, 2007.

Results for the six months ended June 30, 2008:

Net income available for common shareholders was $70.1 million for
the six months ended June 30, 2008, compared to $33.8 million for the
same period last year. Net income available for common shareholders
per share, basic and diluted, (EPS) for the six months ended June 30,
2008 and 2007 was $0.31 and $0.16, respectively. Net income for the
six months ended June 30, 2008 includes a $40.0 million, or $0.18 per
share, gain on sale of properties.

Funds from operations (FFO) available for common shareholders for
the six months ended June 30, 2008 was $127.2 million, or $0.56 per
share basic and $0.55 per share diluted, compared to FFO available for
common shareholders for the six months ended June 30, 2007 of $123.8
million, or $0.59 per share basic and $0.57 per share diluted.

The weighted average number of basic and diluted common shares
outstanding totaled 225,446,585 and 254,639,243 respectively, for the
six months ended June 30, 2008, and 211,167,789 and 240,360,447
respectively, for the six months ended June 30, 2007.

Occupancy and Leasing Results (excluding properties classified in
discontinued operations):

As of June 30, 2008, 90.9% of HRP's total square feet was leased,
compared to 92.7% as of June 30, 2007.

HRP signed lease renewals for 1,316,000 square feet and new leases
for 379,000 square feet during the quarter ended June 30, 2008, for
weighted average rental rates that were 9% above prior rents for the
same space. Average lease terms for leases signed during the second
quarter of 2008 were 5.6 years. Commitments for tenant improvement and
leasing commission (TI/LC) costs for leases signed during the quarter
ended June 30, 2008 totaled $7.84 per square foot on a weighted
average basis.

Investing Activities:

During the second quarter of 2008, HRP acquired one office
property with 374,000 square feet of space for $53.1 million,
excluding closing costs, and sold five properties with 449,000 square
feet of space for $83.8 million, excluding closing costs.

Conference Call:

On Tuesday, August 5, 2008, at 1:00 p.m. Eastern Time, Adam
Portnoy, Managing Trustee, and John Popeo, Chief Financial Officer,
will host a conference call to discuss the second quarter 2008
results.

The conference call telephone number is (888) 256-0990.
Participants calling from outside the United States and Canada should
dial (913) 312-0840. 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 4:00 p.m. Eastern Time on Tuesday, August 12th.
To hear the replay, dial (719) 457-0820. The replay pass code is
4989931.

A live audio webcast of the conference call will also be available
in a listen only mode on HRP's website, which is located at
www.hrpreit.com. 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 Second Quarter 2008 Supplemental Operating and
Financial Data is available for download at HRP's web site,
www.hrpreit.com, which web site is not part of this press release.

HRPT Properties Trust is a real estate investment trust, or REIT,
which primarily owns office buildings located throughout the United
States. As of June 30, 2008, HRP owned 489 operating properties with
63.4 million square feet, including approximately 17 million square
feet of leased industrial and commercial lands in Oahu, HI, and 44
properties with 1.8 million square feet under contract for sale. HRP
is headquartered in Newton, Massachusetts.

Please see the pages attached hereto for a more detailed statement
of our operating results and financial condition, along with an
explanation of our calculation of FFO.

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*T
HRPT Properties Trust
Consolidated Statements of Income and Funds from Operations
(amounts in thousands, except per share data)

Quarter Ended June 30, Six Months Ended June 30,
---------------------- -------------------------
2008 2007 2008 2007
------------ --------- --------------- ---------

Rental income $204,273 $196,231 $405,445 $387,197
------------ --------- --------------- ---------

Expenses:
Operating expenses 83,747 77,800 164,964 154,534
Depreciation and
amortization 45,228 42,684 90,041 83,211
General and
administrative 8,991 8,633 17,853 16,724
------------ --------- --------------- ---------
Total expenses 137,966 129,117 272,858 254,469
------------ --------- --------------- ---------

Operating income 66,307 67,114 132,587 132,728

Interest income 89 567 418 1,025
Interest expense
(including
amortization of debt
discounts, premiums
and deferred
financing fees of
$1,431, $1,038,
$2,526 and $2,148,
respectively) (44,383) (42,190) (89,423) (82,308)
Loss on early
extinguishment of
debt -- (711) -- (711)
------------ --------- --------------- ---------
Income from continuing
operations before
income tax expense 22,013 24,780 43,582 50,734
Income tax benefit
(expense) 4 -- (160) --
------------ --------- --------------- ---------
Income from continuing
operations 22,017 24,780 43,422 50,734
Discontinued
operations:
Income from
discontinued
operations 6,068 6,694 12,069 13,888
Gain on sale of
properties 39,967 -- 39,967 --
------------ --------- --------------- ---------
Net income 68,052 31,474 95,458 64,622
Preferred
distributions (12,667) (15,401) (25,334) (30,802)
------------ --------- --------------- ---------
Net income available
for common
shareholders $ 55,385 $ 16,073 $ 70,124 $ 33,820
============ ========= =============== =========

----------------------------------------------------------------------

Calculation of Funds
from Operations, or
FFO (1):
Net income $ 68,052 $ 31,474 $ 95,458 $ 64,622
Plus: depreciation and
amortization from
continuing operations 45,228 42,684 90,041 83,211
Plus: depreciation and
amortization from
discontinued
operations 3,454 3,102 7,004 6,086
Loss on early
extinguishment of
debt:
Add: amount included
in expenses -- 711 -- 711
Less: portion
settled in cash -- -- -- --
Less: gain on sale of
properties (39,967) -- (39,967) --
------------ --------- --------------- ---------
FFO 76,767 77,971 152,536 154,630
Less: preferred
distributions (12,667) (15,401) (25,334) (30,802)
------------ --------- --------------- ---------
FFO available for
common shareholders $ 64,100 $ 62,570 $127,202 $123,828
============ ========= =============== =========

----------------------------------------------------------------------

Weighted average
common shares
outstanding - basic 225,449 211,721 225,447 211,168
============ ========= =============== =========
Weighted average
common shares
outstanding - diluted
(2) 254,642 240,914 254,640 240,361
============ ========= =============== =========

----------------------------------------------------------------------

Per common share:
Income from
continuing
operations
available for
common shareholders
- basic and diluted $ 0.04 $ 0.04 $ 0.08 $ 0.09
Income from
discontinued
operations - basic
and diluted $ 0.20 $ 0.03 $ 0.23 $ 0.07
Net income available
for common
shareholders -
basic and diluted $ 0.25 $ 0.08 $ 0.31 $ 0.16
FFO available for
common shareholders
- basic $ 0.28 $ 0.30 $ 0.56 $ 0.59
FFO available for
common shareholders
- diluted $ 0.28 $ 0.29 $ 0.55 $ 0.57

Common distributions
paid $ 0.21 $ 0.21 $ 0.42 $ 0.42
*T

HRPT Properties Trust

Consolidated Statements of Income and Funds from Operations

(amounts in thousands, except per share data)

(1) We compute FFO as shown in the calculations above. Our
calculations of FFO differ from the National Association of Real
Estate Investment Trusts, or NAREIT, definition because we add loss on
early extinguishment of debt unless settled in cash. We consider FFO
to be an appropriate measure of performance for a REIT, along with net
income and cash flow from operating, investing and financing
activities. We believe that FFO provides useful information to
investors because by excluding the effects of certain historical
amounts, such as depreciation expense and gains or losses on sales of
depreciated operating properties, FFO can facilitate a comparison of
operating performance among REITs. FFO does not represent cash
generated by operating activities in accordance with generally
accepted accounting principles, or GAAP, and should not be considered
an alternative to net income or cash flow from operating activities as
a measure of financial performance or liquidity. FFO is one important
factor considered by our Board of Trustees in determining the amount
of distributions to shareholders. Other important factors include, but
are not limited to, requirements to maintain our status as a REIT,
limitations in our revolving credit facility and public debt
covenants, the availability of debt and equity capital to us and our
expectations of future capital requirements and operating performance.

(2) As of June 30, 2008, we had 15,180 series D preferred shares
that were convertible into 29,193 common shares. The effect of our
series D convertible preferred shares on income from continuing
operations available for common shareholders per share is
anti-dilutive to income but dilutive to FFO for the quarter and six
months ended June 30, 2008 and 2007. Set forth below is the
calculation of diluted net income available for common shareholders,
diluted FFO available for common shareholders and diluted weighted
average common shares outstanding.

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Quarter Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2008 2007 2008 2007
-------- ------------------ --------

Net income available for common
shareholders $ 55,385 $ 16,073 $ 70,124 $ 33,820
Add - Series D convertible
preferred distributions 6,167 6,167 12,334 12,334
-------- -------- -------- --------
Net income available for common
shareholders - diluted $ 61,552 $ 22,240 $ 82,458 $ 46,154
======== ======== ======== ========

FFO available for common
shareholders $ 64,100 $ 62,570 $127,202 $123,828
Add - Series D convertible
preferred distributions 6,167 6,167 12,334 12,334
-------- -------- -------- --------
FFO available for common
shareholders - diluted $ 70,267 $ 68,737 $139,536 $136,162
======== ======== ======== ========

Weighted average common shares
outstanding - basic 225,449 211,721 225,447 211,168
Effect of dilutive Series D
preferred shares 29,193 29,193 29,193 29,193
-------- -------- -------- --------
Weighted average common shares
outstanding - diluted 254,642 240,914 254,640 240,361
======== ======== ======== ========
*T

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HRPT Properties Trust
Consolidated Balance Sheets
(amounts in thousands, except share data)

June 30, December 31,
2008 2007
------------ ------------
(audited)
ASSETS
---------------------------------------------
Real estate properties:
Land $ 1,166,638 $ 1,189,684
Buildings and improvements 4,770,280 4,966,610
------------ ------------
5,936,918 6,156,294
Accumulated depreciation (799,958) (808,216)
------------ ------------
5,136,960 5,348,078
Properties held for sale 311,665 --
Acquired real estate leases 151,869 150,672
Cash and cash equivalents 33,277 19,879
Restricted cash 94,105 18,027
Rents receivable, net of allowance for
doubtful accounts of $8,082 and $6,290,
respectively 174,677 197,967
Other assets, net 100,593 124,709
------------ ------------
Total assets $ 6,003,146 $ 5,859,332
============ ============

LIABILITIES AND SHAREHOLDERS' EQUITY
---------------------------------------------
Revolving credit facility $ 301,000 $ 140,000
Senior unsecured debt, net 2,240,504 2,239,784
Mortgage notes payable, net 380,116 394,376
Mortgage notes payable and other
liabilities related to properties held for
sale 16,271 --
Accounts payable and accrued expenses 96,358 89,441
Acquired real estate lease obligations 42,375 41,607
Rent collected in advance 22,628 24,779
Security deposits 12,597 16,063
Due to affiliates 12,819 10,399
------------ ------------
Total liabilities 3,124,668 2,956,449
------------ ------------

Shareholders' equity:
Preferred shares of beneficial interest,
$0.01 par value:
50,000,000 shares authorized;
Series B preferred shares; 8 3/4%
cumulative redeemable at par on or after
September 12, 2007; 7,000,000 shares
issued and outstanding, aggregate
liquidation preference $175,000 169,079 169,079
Series C preferred shares; 7 1/8%
cumulative redeemable at par on or after
February 15, 2011; 6,000,000 shares
issued and outstanding, aggregate
liquidation preference $150,000 145,015 145,015
Series D preferred shares; 6 1/2%
cumulative convertible; 15,180,000
shares issued and outstanding, aggregate
liquidation preference $379,500 368,270 368,270
Common shares of beneficial interest,
$0.01 par value:
350,000,000 shares authorized;
225,464,497 and 225,444,497 shares
issued and outstanding, respectively 2,255 2,254
Additional paid in capital 2,923,611 2,923,455
Cumulative net income 1,923,067 1,827,609
Cumulative common distributions (2,346,225) (2,251,539)
Cumulative preferred distributions (306,594) (281,260)
------------ ------------
Total shareholders' equity 2,878,478 2,902,883
------------ ------------
Total liabilities and shareholders' equity $ 6,003,146 $ 5,859,332
============ ============
*T

HRPT Properties Trust
Timothy A. Bonang, 617-796-8222
Director of Investor Relations
or
Katherine L. Johnston, 617-796-8222
Manager of Investor Relations
www.hrpreit.com

Copyright Business Wire 2008