HRPT Properties Trust Announces Results for the Periods Ended September 30, 2009

HRPT Properties Trust (NYSE: HRP) today announced financial results for the quarter and nine months ended September 30, 2009.

Results for the quarter ended September 30, 2009:

Net income available for common shareholders was $59.5 million for the quarter ended September 30, 2009, compared to $73.1 million for the same quarter last year. Net income available for common shareholders per share, basic and diluted, (EPS) for the quarters ended September 30, 2009 and 2008 was $0.27 and $0.32, respectively. Net income for the quarter ended September 30, 2009 includes $50.1 million, or $0.22 per share, of gain on sale of properties. Net income for the quarter ended September 30, 2008 includes $57.7 million, or $0.25 per share, of gain on sale of properties.

Funds from operations (FFO) available for common shareholders for the quarter ended September 30, 2009 was $60.8 million, or $0.27 and $0.26 per share basic and diluted, respectively, compared to FFO available for common shareholders for the quarter ended September 30, 2008 of $62.3 million, or $0.27 per share basic and diluted.

The weighted average number of basic and diluted common shares outstanding totaled 223,729,719 and 252,922,377, respectively, for the quarter ended September 30, 2009, and 227,251,421 and 256,444,079, respectively, for the quarter ended September 30, 2008.

Results for the nine months ended September 30, 2009:

Net income available for common shareholders was $136.9 million for the nine months ended September 30, 2009, compared to $143.2 million for the same period last year. Net income available for common shareholders per share, basic and diluted, (EPS) for the nine months ended September 30, 2009 and 2008 was $0.61 and $0.63, respectively. Net income for the nine months ended September 30, 2009 includes $79.2 million, or $0.35 per share, of gain on sale of properties and $20.7 million, or $0.09 per share, of gain on early extinguishment of debt. Net income for the nine months ended September 30, 2008 includes $97.6 million, or $0.43 per share, of gain on sale of properties.

Funds from operations (FFO) available for common shareholders for the nine months ended September 30, 2009 was $187.5 million, or $0.84 and $0.81 per share basic and diluted, respectively, compared to FFO available for common shareholders for the nine months ended September 30, 2008 of $189.5 million, or $0.84 and $0.82 per share basic and diluted, respectively.

The weighted average number of basic and diluted common shares outstanding totaled 224,341,719 and 253,534,377, respectively, for the nine months ended September 30, 2009, and 226,052,588 and 255,245,246, respectively, for the nine months ended September 30, 2008.

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

As of September 30, 2009, 88.0% of HRP’s total square feet was leased, compared to 89.1% as of June 30, 2009 and 90.6% as of September 30, 2008.

HRP signed lease renewals for 618,000 square feet and new leases for 518,000 square feet during the quarter ended September 30, 2009, for weighted average rental rates that were 3% below prior rents for the same space. Average lease terms for leases signed during the third quarter of 2009 were 4.6 years. Commitments for tenant improvement and leasing commission (TI/LC) costs for leases signed during the quarter ended September 30, 2009 totaled $6.32 per square foot on a weighted average basis.

Investing Activities:

During the third quarter of 2009, HRP acquired three office properties with 761,000 square feet of space for $207.6 million, excluding closing costs. HRP also sold seven properties during the third quarter of 2009 with 374,000 square feet of space for $144.6 million, excluding closing costs, and realized a gain on sale of properties of $50.1 million.

Conference Call:

On Thursday, November 5, 2009, 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 third quarter 2009 results.

The conference call telephone number is (888) 670-2251. Participants calling from outside the United States and Canada should dial (913) 312-1463. No pass code is necessary to access either call. 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 Thursday, November 12, 2009. To hear the replay, dial (719) 457-0820. The replay pass code is 6646149.

A live audio webcast of the conference call will also be available in a listen only mode on HRP’s web site, which is located at www.hrpreit.com. Participants wanting to access the webcast should visit HRP’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 Third Quarter 2009 Supplemental Operating and Financial Data is available for download at HRP’s web site, www.hrpreit.com.

HRPT Properties Trust is a real estate investment trust, or REIT, which primarily owns office and industrial buildings located throughout the United States. As of September 30, 2009, HRP owned 515 operating properties with 66.1 million square feet, including approximately 17 million square feet of leased industrial and commercial lands in Oahu, Hawaii. 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. HRP’s web site is not incorporated as part of this press release.

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

⁽¹⁾ Acquisition costs have been expensed under the Business Combinations Topic of The FASB Accounting Standards Codification^TM since January 1, 2009.

⁽²⁾ 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 exclude acquisition costs, gain on early extinguishment of debt and 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 properties, FFO can facilitate a comparison of operating performance between periods and 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. Also, some REITs may calculate FFO differently than us.

⁽³⁾ As of September 30, 2009, our 15,180 outstanding series D preferred shares were convertible into 29,193 common shares. The effect of a conversion 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 quarters and nine months ended September 30, 2009 and 2008. 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.