Government Properties Income Trust (GOV) SEC Filing 10-K Annual report for the fiscal year ending Thursday, December 31, 2015

Government Properties Income Trust Announces Fourth Quarter and

Year End 2015 Results

Normalized FFO Per Share for the Fourth Quarter Increases 5% Year over Year to $0.61

New and Renewal Leases Entered During the Fourth Quarter for 204,833 Square Feet

Occupancy Increases 100 bps Sequentially Compared to the Previous Quarter

Newton, MA (February 18, 2016): Government Properties Income Trust (NYSE: GOV) today announced its financial results for the quarter and year ended December 31, 2015.

David Blackman, President and Chief Operating Officer of GOV, made the following statement:

“Government Properties Income Trust had an active fourth quarter of 2015.  We executed leases for almost 205,000 square feet, with approximately 93% of this leasing activity with government tenants.  Our leasing included approximately 110,000 square feet of positive absorption that increased occupancy by 100 bps from the third quarter of 2015.  As of the quarter end, over 93% of our rents came from government tenants.”

Results for the Quarter Ended December 31, 2015:

Normalized funds from operations, or Normalized FFO, for the quarter ended December 31, 2015 were $43.6 million, or $0.61 per diluted share, compared to Normalized FFO for the quarter ended December 31, 2014 of $40.7 million, or $0.58 per diluted share. The increase in Normalized FFO per share for the quarter ended December 31, 2015 was primarily the result of an increase in Normalized FFO attributable to GOV’s investment in Select Income REIT (NYSE: SIR).

Net loss determined in accordance with U.S. generally accepted accounting principles, or GAAP, was $2.3 million, or $0.03 per diluted share, for the quarter ended December 31, 2015, compared to net income of $14.1 million, or $0.20 per diluted share, for the quarter ended December 31, 2014. The net loss for the quarter ended December 31, 2015 included non-cash loss on the distribution of shares of class A common stock of The RMR Group Inc. (NASDAQ: RMR) common stock to GOV’s shareholders totaling $12.4 million, or $0.17 per diluted share. The weighted average number of diluted common shares outstanding was 71.0 million for the quarter ended December 31, 2015, and 70.3 million for the quarter ended December 31, 2014.

Reconciliations of net income (loss) determined in accordance with GAAP, to funds from operations, or FFO, and Normalized FFO for the quarters ended December 31, 2015 and 2014 appear later in this press release.

Results for the Year Ended December 31, 2015:

Normalized FFO for the year ended December 31, 2015 were $168.7 million, or $2.39 per diluted share, compared to Normalized FFO for the year ended December 31, 2014 of $140.8 million, or $2.29 per diluted share. The