HRPT Properties Trust Announces Results for the Periods Ended September 30, 2007

HRPT Properties Trust (NYSE: HRP) today announced financial results for the quarter and nine months ended September 30, 2007. Results for the quarter ended September 30, 2007: Net income available for common shareholders was $16.8 million for the quarter ended September 30, 2007, compared to $22.1 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, 2007 and 2006 was $0.08 and $0.11, respectively. Funds from operations (FFO) available for common shareholders for the quarter ended September 30, 2007, were $62.9 million, or $0.30 per share basic, $0.29 per share diluted, compared to FFO available for common shareholders for the quarter ended September 30, 2006, of $62.0 million, or $0.30 per share basic and diluted. The weighted average number of basic and diluted common shares outstanding totaled 212,078,394 and 241,271,052, respectively, for the quarter ended September 30, 2007, and 209,991,644 for the quarter ended September 30, 2006. Results for the nine months ended September 30, 2007: Net income available for common shareholders was $50.6 million for the nine months ended September 30, 2007, compared to $175.8 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, 2007 and 2006 was $0.24 and $0.84, respectively. Net income for the nine months ended September 30, 2006 included a $116.3 million, or $0.55 per share, gain on sale of equity investments. Funds from operations (FFO) available for common shareholders for the nine months ended September 30, 2007, were $186.7 million, or $0.88 per share basic, $0.85 per share diluted, compared to FFO available for common shareholders for the nine months ended September 30, 2006, of $189.4 million, or $0.90 per share basic and diluted. The weighted average number of basic and diluted common shares outstanding totaled 211,474,660 and 240,667,318, respectively, for the nine months ended September 30, 2007, and 209,940,526 for the nine months ended September 30, 2006. Occupancy and Leasing Results: As of September , 2007, 92.8% of HRPT’s total square feet was leased, compared to 92.9% as of June 30, 2007, and 93.4% leased as of September 30, 2006. HRPT signed new leases for 248,000 square feet and lease renewals for 1,235,000 square feet during the quarter ended September 30, 2007, for weighted average rental rates that were 9% above prior rents for the same space. Average lease terms for leases signed during the third quarter of 2007 were 7.7 years. Commitments for tenant improvement and leasing commission (TI/LC) costs for leases signed during the quarter ended September 30, 2007, totaled $11.88 per square foot on a weighted average basis. Investing Activities: During the third quarter of 2007, HRPT acquired six properties with 340,000 square feet of space for $48.5 million, excluding closing costs. Conference Call: On Tuesday, November 6, 2007, 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 2007 results. The conference call telephone number is (800) 580-6377. Participants calling from outside the United States and Canada should dial (913) 981-5578. 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 Tuesday, November 13, 2007. To hear the replay, dial (719) 457-0820. The replay pass code is 3260564. A live audio webcast of the conference call will also be available in a listen only mode on HRPT’s web site, 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 HRPT’s web site for about one week after the call. Supplemental Data: A copy of HRPT’s Third Quarter 2007 Supplemental Operating and Financial Data is available for download at HRPT’s web site. HRPT Properties Trust is a real estate investment trust, or REIT, which primarily owns office buildings located throughout the United States. As of September 30, 2007, HRPT owned 530 properties with 63.9 million square feet, including approximately 17 million square feet of leased industrial and commercial lands in Oahu, HI. HRPT 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. HRPT Properties Trust Consolidated Statements of Income and Funds from Operations (amounts in thousands, except per share data)   Quarter Ended September 30,   Nine Months Ended September 30, 2007   2006 2007   2006   Rental income $211,217 $202,542 $626,262 $590,058   Expenses: Operating expenses 82,768 80,219 243,935 227,981 Depreciation and amortization 46,116 41,064 135,413 119,109 General and administrative 8,947 8,513 26,650 24,926 Total expenses 137,831 129,796 405,998 372,016 Operating income 73,386 72,746 220,264 218,042   Interest income 415 573 1,442 2,118 Interest expense (including amortization of debt discounts, premiums and deferred financing fees of $1,085, $1,105, $3,207 and $3,348, respectively)   (44,055)   (43,169)   (126,627)   (126,317) Loss on early extinguishment of debt — — (711) (1,659) Equity in earnings of equity investments — — — 3,136 Gain on sale of equity investments — — — 116,287 Income from continuing operations 29,746 30,150 94,368 211,607 Income (loss) from discontinued operations — 32 — (76) Gain on sale of properties 2,408 1,172 2,408 1,172 Net income 32,154 31,354 96,776 212,703 Preferred distributions (15,402) (9,234) (46,204) (29,976) Excess redemption price paid over carrying value of preferred shares — — — (6,914) Net income available for common shareholders $16,752 $22,120 $50,572 $175,813                   Calculation of Funds from Operations, or FFO (1): Net income $32,154 $31,354 $96,776 $212,703 Plus: depreciation and amortization 46,116 41,078 135,413 119,230 Loss on early extinguishment of debt: Add: amount included in total expenses — — 711 1,659 Less: portion settled in cash — — — — Gain on sale of properties: Less: amount included in net income (2,408) (1,172) (2,408) (1,172) Add: land sales 2,408 — 2,408 — Less: gain on sale of equity investments — — — (116,287) Less: equity in earnings of equity investments — — — (3,136) Plus: FFO from equity investments — — — 6,426 FFO 78,270 71,260 232,900 219,423 Less: preferred distributions (15,402) (9,234) (46,204) (29,976) FFO available for common shareholders $62,868 $62,026 $186,696 $189,447                   Weighted average common shares outstanding – basic 212,078 209,992 211,475 209,941 Weighted average common shares outstanding – diluted (2) 241,271 209,992 240,668 209,941                   Per common share: Income from continuing operations available for common shareholders – basic and diluted $0.07 $0.10 $0.23 $0.83 Income (loss) from discontinued operations – basic and diluted $0.01 $0.01 $0.01 $0.01 Net income available for common shareholders – basic and diluted 0.08 0.11 0.24 0.84 FFO available for common shareholders – basic 0.30 0.30 0.88 0.90 FFO available for common shareholders – diluted 0.29 0.30 0.85 0.90   Common distributions paid 0.21 0.21 0.63 0.63 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) At September 30, 2007, 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 and net income available for common shareholders per share is anti-dilutive to income but dilutive to FFO for the quarter and nine months ended September 30, 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.   Quarter Ended September 30,   Nine Months Ended September 30, 2007   2006 2007   2006   Net income available for common shareholders $16,752 $22,120 $50,572 $175,813 Add - Series D convertible preferred distributions 6,167 — 18,501 — Net income available for common shareholders – diluted $22,919 $22,120 $69,073 $175,813   FFO available for common shareholders $62,868 $62,026 $186,696 $189,447 Add - Series D convertible preferred distributions 6,167 — 18,501 — FFO available for common shareholders – diluted $69,035 $62,026 $205,197 $189,447   Weighted average common shares outstanding – basic 212,078 209,992 211,475 209,941 Effect of Series D preferred shares 29,193 — 29,193 — Weighted average common shares outstanding – diluted 241,271 209,992 240,668 209,941 HRPT Properties Trust Consolidated Balance Sheets (amounts in thousands, except share data)   September 30,   December 31, 2007 2006 (audited) ASSETS Real estate properties: Land $1,175,940 $1,143,109 Buildings and improvements 4,873,816 4,619,164 6,049,756 5,762,273 Accumulated depreciation (770,839) (668,460) 5,278,917 5,093,813 Acquired real estate leases 156,743 167,879 Cash and cash equivalents 25,639 17,783 Restricted cash 17,410 21,635 Rents receivable, net of allowance for doubtful accounts of $5,810 and $4,737, respectively 191,591 172,566 Other assets, net 130,212 102,273 Total assets $5,800,512 $5,575,949   LIABILITIES AND SHAREHOLDERS’ EQUITY Revolving credit facility $38,000 $40,000 Senior unsecured debt, net 2,239,424 1,941,173 Mortgage notes payable, net 397,435 416,058 Accounts payable and accrued expenses 88,122 93,734 Dividends payable — 44,111 Acquired real estate lease obligations 39,612 41,833 Rent collected in advance 20,124 19,592 Security deposits 16,031 15,972 Due to affiliates 23,228 12,708 Total liabilities 2,861,976 2,625,181   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; 12,000,000 shares issued and outstanding, aggregate liquidation preference $300,000     289,849     289,849 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: 300,000,000 shares authorized; 212,457,190 and 210,051,590 shares issued and outstanding, respectively 2,125 2,101 Additional paid in capital 2,802,869 2,774,461 Cumulative net income 1,800,130 1,703,354 Cumulative common distributions (2,204,198) (2,115,299) Cumulative preferred distributions (265,524) (216,983) Total shareholders’ equity 2,938,536 2,950,768 Total liabilities and shareholders’ equity $5,800,512 $5,575,949