Reit Management & Research LLC Presentation April 2012

Transcription

1 Denver, CO, one of the many markets where RMR managed companies own properties. Reit Management & Research LLC Presentation April 2012 Unless otherwise stated, information is as of December 31, 2011.

2 RMR is a private company that manages publicly traded companies. Since its founding in 1986, RMR has grown from managing one public company with less than $100 million in assets to eight public companies with over $20 billion in assets. (1) In combination, the RMR companies have: Over $20 billion invested in over 1,470 properties; Over 140 million square feet; and Located in 46 states, Washington, D.C., Puerto Rico, Ontario, Canada, and Australia. Nearly 750 direct employees. Three affiliated operating companies combined have an additional 44,800 employees. Headquarters in Newton, Massachusetts. 20 regional offices throughout the U.S. Reit Management & Research LLC (1) As of December 31,

3 RMR manages several publicly traded real estate companies. Reit Management & Research LLC Five Real Estate Investment Trusts (REITs) Two Operating Companies One Advisor with One Closed-End Fund One Hotel Operating Company CommonWealth REIT (NYSE: CWH) Office & Industrial Properties Hospitality Properties Trust (NYSE: HPT) Hotel Properties Senior Housing Properties Trust (NYSE: SNH) Senior Housing & Medical Office Properties Government Properties Income Trust (NYSE: GOV) Government Office Properties Select Income REIT(NYSE: SIR) Net Leased Office & Industrial Properties Five Star Quality Care Inc. (NYSE: FVE) Senior Living Facilities living.com TravelCenters of America (NYSE Amex: TA) Truck Stop Facilities centers.com RMR Funds (NYSE: RIF) Domestic Fund Sonesta International Hotels Corporation Hotel Operating Company Reit Management & Research LLC 3

4 Since 1986, RMR has grown the assets under management to over $20 billion. $22,000 $20,000 $18,000 $16,000 $14,000 IPO of FVE IPO of SNH IPO of HPT Launch of RMR Funds IPO of TA IPO of GOV IPO of SIR $12,000 IPO of CWH $10,000 $8,000 $6,000 $4,000 $2,000 $0 Reit Management & Research LLC Note: As of 6/30/11. 4

5 RMR Real Estate Services actively manages a large portfolio of commercial properties. 733 properties million rentable square feet. RMR has nearly 750 employees. 75% work in RMR Real Estate Services: Corporate level employees (Acquisitions, Asset Management, Leasing, National Engineering) Regional VPs. Area managers. Property managers. Building engineers. Fiscal operations. The majority of these employees focus primarily on CWH properties. Reit Management & Research LLC 5

6 RMR did you know? CWH has paid out approximately $3.3 billion in dividends since inception. HPT owns the most Courtyard hotels of any entity other than Marriott. TA is a Fortune 500 company. GOV s major tenant is the U.S. Government (93% of rents). SNH s senior living properties have former astronauts, supreme court justices and college presidents as residents. FVE is nationally recognized as one of the premier operators in the senior living industry. SIR is the largest owner of industrial land in Hawaii. RMR managed companies have nearly 300,000 shareholders and count Vanguard, State Street, Goldman Sachs and Fidelity as large shareholders in multiple companies. RMR managed companies own property in every U.S. state except Alaska, Maine, Montana and North Dakota. Reit Management & Research LLC 6

7 CWH is a large nationwide office and industrial REIT with geographic, market and tenant diversity. $7.8 billion investment portfolio (historical investment basis). Over 500 properties located in 33 states, Washington, D.C. and Australia, including over 60 markets. Top 12 tenants account for approximately 18% of annualized rental income and no single tenant exceeds 2% of annualized rental income. (1) 1250 H Street Washington, DC 600 West Street Chicago, IL Arizona Center Phoenix, AZ Industrial Lands Kapolei, HI. Reit Management & Research LLC (1) Annualized rental income is rents pursuant to signed leases as of 12/31/2011, plus estimated expense reimbursements; includes some triple net lease rents and excludes lease value amortization. 7

8 Representative CWH property. Expedia Building Bellevue, WA CBD Office 415,000 square feet Reit Management & Research LLC 8

9 HPT is the second largest lodging REIT in the U.S. HPT owns geographically diverse real estate with well known operators and strong brands. $6.0 billion investment portfolio. 473 properties in 44 states, Puerto Rico and Canada. 288 hotel properties with 42,637 rooms. 185 travel centers averaging 23 acres along U.S Interstate Highways. Conservative financial profile. HPT is the only investment grade rated lodging REIT and has been investment grade since Reit Management & Research LLC 9

10 Intercontinental San Juan, PR 402 Guest Rooms Representative HPT property. Reit Management & Research LLC 10 10

11 SNH is a healthcare REIT with geographic, tenant and product diversity. $4.9 billion investment portfolio (historical investment basis). 373 properties in 38 states and Washington, D.C. Approximately 560 tenants. 30,700 beds/units and 7.6 million sq. ft. of medical office building (MOB) space. 100% fee ownership in properties that cover the healthcare spectrum. 4% 4% 2% Private pay senior living communities (CCRCs, IL, AL). Medical office, clinic and biotech lab buildings. 30% Skilled nursing facilities (SNFs). 60% Private pay wellness centers. (based on NOI) Rehabilitation hospitals. Reit Management & Research LLC 11

12 Cedars-Sinai Medical Center Los Angeles, CA 330,928 sq. ft. Reit Management & Research LLC 12 12

13 GOV is a REIT which primarily owns commercial office properties majority leased to the government tenants. Government Properties Income Trust (NYSE: GOV) is a Real Estate Investment Trust (REIT) which primarily owns commercial office properties majority leased to government tenants. GOV owns 71 properties with nearly 9 million square feet. These properties are occupied by 31 federal agencies and 22 state agencies across 29 states and the District of Columbia. 93% of annualized rental income is paid by the U.S. Government and six state governments. GOV became a public company in June 2009 raising $230 million of gross proceeds. GOV s portfolio at the time of the IPO contained $500 million of government leased buildings. Through acquisitions and additional equity raises, GOV has grown its real estate portfolio and equity market capitalization to over $1 billion while maintaining a conservative financial structure. Dividend per share per year $1.68 Dividend yield (1) 7.5% Debt to total market capitalization 29.4% Debt to total book capitalization 33.1% EBITDA / Interest expense 9.0x Reit Management & Research LLC (1) As of December 30,

14 20 Massachusetts Avenue Washington, DC 339,541 sq. ft. Tenant: U.S. Government Department of Justice U.S. Customs & Immigration Services Reit Management & Research LLC 14 14

15 SIR is a REIT which primarily owns net leased, single tenant properties. Select Income REIT (NYSE: SIR) primarily owns office and industrial properties that are net leased to single tenants. SIR currently owns 251 properties with 21.4 million rentable square feet. Type of Property Hawaii Properties 68.1% of total revenues are primarily from Hawaii lands, most of which are long term leased to tenants who have constructed buildings and operate businesses on SIR s properties. The remaining revenues come from 14 office and 9 industrial properties located in 13 states on the U.S. mainland. Number of Properties Portfolio Overview Rentable Square Feet Total Revenues for the Year Ended December 31, 2011 Weighted Average Remaining Lease Term as of December 31, 2011 (1) ,774,962 $73, years Mainland Net Leased Industrial Buildings Mainland Net Leased Office Buildings Total Revenues Year Ended 12/31/ % 11.4% Mainland Office 14 1,456,742 $22, years Mainland Industrial 9 2,192,096 $12, years Total ,423,800 $108, years Total = $108, % Hawaii properties Reit Management & Research LLC 15

16 1390 Pali Avenue Honolulu, HI 339,541 sq. ft. Tenant: Safeway Longs 16

17 FVE is one of the largest, publicly traded operators of senior living communities in the U.S. Five Star operates 245 senior living communities with over 27,000 units in service. 207 independent living, assisted living and continuing care retirement communities plus 38 skilled nursing facilities. Five Star owns 31 private pay communities with approximately 3,000 units. Five Star manages 23 senior living communities with approximately 3,400 units. Over 25,600 employees nationwide. 75% of FVE s revenues come from private pay senior living. Total Revenue by Business Independent and Assisted Living, 69% Skilled Nursing, 17% Institutional Pharmacies, 6% Rehab Hospitals, 8% Senior Living Revenues by Source Medicaid, 13% Medicare, 12% Private Pay, 75% Reit Management & Research LLC 17

18 The Forum at Memorial Woods Houston, TX 417 Units Reit Management & Research LLC 18

19 TA operates a nationwide business of 237 travel centers located principally along the U.S. interstate highway system. TA operates under two brands: TravelCenters of America or TA (168 sites). Petro (69 sites). Our sites offer diesel and gasoline fueling services, restaurants, heavy truck maintenance and repair facilities, travel stores and other driver amenities. We welcome customers 24 hours a day, 365 days a year. Reit Management & Research LLC 19

20 Reit Management & Research LLC 20

21 Sonesta International Hotels Corporation operates hotels throughout the U.S., Latin America, and Egypt. An RMR affiliated company acquired Sonesta, a formerly NASDAQ listed company, on January 31, Sonesta currently has 33 flagged hotels and cruise ships. Hotels in Cambridge, MA and New Orleans, LA were acquired by Hospitality Properties Trust and will be managed by Sonesta. Sonesta manages 15 additional properties: one hotel in Miami, seven hotels in Egypt, and six cruise ships on the Nile River in Egypt. Sonesta is the franchisor of 16 hotels in Latin America: Chile (three) Columbia (four), Ecuador (one), Peru (seven), and St. Maarten (two). One hotel in development in Qatar is under contract to be managed by Sonesta. Royal Sonesta New Orleans, LA Royal Sonesta Cambridge, MA Reit Management & Research LLC 21

22 RMR has a long track record of paying dividends to investors. RMR managed REITs and affiliated companies have paid over $8 billion in common and preferred share dividends since $9,000,000 Cumulative Dividends Paid ($ in thousands) $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Year Reit Management & Research LLC 22

23 RMR has a long track record of delivering strong returns to investors. Total Return Reit Management & Research LLC 23

24 RMR provides a depth and quality of management which may be unequaled in the real estate industry. RMR currently employs nearly 750 real estate professionals in its Boston area headquarters and 20 regional and area offices. States/areas in which RMR properties are located. Corporate headquarters. Regional and area offices. Newton, MA Washington, DC Philadelphia, PA Los Angeles, CA Sacramento, CA San Diego, CA Atlanta, GA Austin, TX Honolulu, HI Kansas City, KS Dearborn, MI Minneapolis, MN Albuquerque, NM Syracuse, NY Denver, CO Pittsburgh, PA Bellevue, WA Columbia, SC Indianapolis, IN Milwaukee, WI Watertown, MA Barry M. Portnoy Adam D. Portnoy Gerard. M. Martin David J. Hegarty Jennifer B. Clark Mark L. Kleifges Bruce J. Mackey John A. Mannix John G. Murray Thomas M. O Brien John C. Popeo William J. Sheehan David M. Blackman Ethan S. Bornstein Richard A. Doyle Paul V. Hoagland David M. Lepore Andrew J. Rebholz Mark R. Young Vern Larkin Reit Management & Research LLC (RMR) Executive Officers Chairman, Co-Founder Director, President & CEO Director, Co-Founder Director, Executive Vice President Executive Vice President, General Counsel Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President, CFO, Treasurer Executive Vice President Senior Vice President Senior Vice President Senior Vice President Senior Vice President Senior Vice President Senior Vice President Senior Vice President Director of Internal Audit Staff (nearly 750 professionals in headquarters and 20 regional and area offices) Accounting Acquisitions Administration Building Operations Compliance/Internal Audit Construction Development Dispositions Engineering Finance Financial Planning Human Resources Information Services Investor Relations Leasing Market Research Legal Risk Management Tax Reit Management & Research LLC 24

25 Denver, CO, one of the many markets where RMR managed companies own properties. Reit Management & Research LLC Presentation April 2012 Unless otherwise stated, information is as of December 31, 2011.