HRPT Properties Trust Announces Financial Results for the Periods Ended June 30, 2002.

Business Editors

NEWTON, Mass.--(BUSINESS WIRE)--Aug. 6, 2002

HRPT Properties Trust (NYSE: HRP) today announced its financial results for the periods ended June 30, 2002, together with comparative results for the 2001 periods as follows:

               (in thousands, except per share amounts)

                                    Quarter Ended    Six Months Ended
                                       June 30,           June 30,
                                    2002     2001      2002      2001

Revenues                        $100,729  $98,646  $199,404  $198,476
Net income                       $26,812  $25,716   $47,976   $51,512
 Net income available for common
  shareholders                   $21,875  $20,779   $38,101   $44,545
FFO from property operations     $33,313  $32,782   $65,149   $66,136
 FFO                             $42,115  $42,003   $82,629   $84,305
  Weighted average common shares
   outstanding                   128,810  130,619   128,809   131,103
  Per common share:
  Basic and diluted net
   income available for
   common shareholders             $0.17    $0.16     $0.30     $0.34
  FFO from property operations     $0.26    $0.25     $0.51     $0.50
 FFO                               $0.33    $0.32     $0.64     $0.64

Net income available for common shareholders is net income reduced by preferred distributions.

Funds from Operations ("FFO") is net income available for common shareholders adjusted as follows: excluding (a) equity in earnings of equity investments, the reversal of impairment of assets, extraordinary items, and loss on equity transactions; and adding (b) funds from operations from equity investments, and depreciation and non-cash expenses. FFO from property operations is FFO excluding funds from operations from equity investments.

Recent Activities

In April 2002 HRPT issued $200 million of 6.95% senior notes due 2012. Net proceeds of $197 million were used to repay amounts outstanding under HRPT's credit facility.

During the second quarter of 2002, HRPT acquired three office buildings containing approximately 107,000 square feet for $16 million, including closing costs. These properties were 100% occupied and the combined rents, net of operating costs, produced an annualized yield of approximately 11% on HRPT's investment at the time these properties were acquired.

On July 3, 2002, HRPT filed an application with the Securities and Exchange Commission to permit the sale of some of HRPT's shareholdings in its former subsidiaries, Senior Housing Properties Trust ("SNH") and Hospitality Properties Trust ("HPT"), as well as new shares of HRPT to a new mutual fund to be organized by a subsidiary of REIT Management & Research LLC, the investment and property manager to HRPT, SNH and HPT. The SEC review process for this application is expected to take several months. The decision as to whether to proceed with the fund creation and the sale of shares to the fund will depend upon market conditions if and after the application is approved, particularly the market prices of HPT, SNH and HRPT shares and the uses of sales proceeds available to HRPT at that time. If this application is approved and the fund is formed, HRPT may have a new, cost-effective option to sell its shareholdings in these former subsidiaries and its own shares in a manner which is not likely to materially effect the trading prices of those shares. HRPT continues to view its shareholdings of HPT and SNH as income producing long-term investments.

HRPT Properties Trust is a real estate investment trust headquartered in Newton, MA. HRPT currently owns office buildings with approximately 20 million square feet that are located throughout the United States.

THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON HRPT'S CURRENT BELIEFS AND EXPECTATIONS, BUT THEY ARE NOT GUARANTEED. FOR EXAMPLE, THE FACT THAT HRPT HAS FILED AN APPLICATION WITH THE SEC TO SELL SHARES TO A FUND DOES NOT MEAN THAT SUCH SALES WILL OCCUR; THE SEC MAY NOT APPROVE THIS APPLICATION OR HRPT MAY DECIDE NOT TO PROCEED WITH THIS SALE BECAUSE IT CONSIDERS THE MARKET PRICES OF THE SHARES TOO LOW, BECAUSE HRPT DOES NOT HAVE AN ATTRACTIVE USE OF PROCEEDS OR FOR OTHER REASONS. SIMILARLY, THE IMPLICATION WHICH MIGHT BE DRAWN FROM HRPT'S RECENT LEASING EXPERIENCE (AS DESCRIBED IN THE ADDITIONAL DATA SHEET ATTACHED HERETO) IS THAT RENTS WILL CONTINUE TO INCREASE AS LEASES EXPIRE. HOWEVER, CHANGING MARKET CONDITIONS MAY MEAN THAT EXPIRING LEASES WILL CAUSE VACANCIES TO INCREASE OR PROPERTIES TO BE LEASED AT LOWER RENTS. ALSO, ALTHOUGH HRPT EXPECTS TO PURSUE ADDITIONAL PROPERTY ACQUISITIONS DURING 2002, ADDITIONAL PROPERTY ACQUISITIONS MAY NOT BE COMPLETED BECAUSE PRICES WHICH HRPT CONSIDERS ACCEPTABLE ARE NOT ACHIEVABLE. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.

                        HRPT Properties Trust
                        Financial Information
               (in thousands, except per share amounts)

                                    Quarter Ended    Six Months Ended
                                       June 30,           June 30,
                                    2002     2001      2002      2001

Revenues:
 Rent and other income          $100,729  $98,646  $199,404  $198,476
Expenses:
  Operating expenses              36,278   35,142    71,883    70,177
  Interest                        20,387   20,929    41,297    45,128
  Depreciation and amortization   17,444   16,075    34,665    32,082
  General and administrative       4,151    3,640     7,876     7,733
  Non-recurring item:
     Impairment of assets             --       --        --    (3,955)
            Total expenses        78,260   75,786   155,721   151,165
Income before equity in earnings
 of equity investments and
 extraordinary item               22,469   22,860    43,683    47,311
Equity in earnings of equity
 investments of Senior Housing
 Properties Trust and Hospitality
 Properties Trust                  4,343    3,188     9,058     6,350
Loss on equity transactions of
 equity investments (1)               --       --    (1,421)       --
Extraordinary item - early
 extinguishment of debt               --     (332)   (3,344)   (2,149)
Net income (2)                    26,812   25,716    47,976    51,512
Preferred distributions           (4,937)  (4,937)   (9,875)   (6,967)
Net income available for
 common shareholders (2)         $21,875  $20,779   $38,101   $44,545


Calculation of FFO:
 Income before equity in earnings
  of equity investments and
  extraordinary item             $22,469  $22,860   $43,683   $47,311
Non-recurring item                    --       --        --    (3,955)
Preferred distributions           (4,937)  (4,937)   (9,875)   (6,967)
Depreciation and non-cash
 expenses                         15,781   14,859    31,341    29,747
Funds from operations from
 property operations (3)          33,313   32,782    65,149    66,136
Funds from operations from
 equity investments of Senior
 Housing Properties Trust and
 Hospitality Properties Trust(3)   8,802    9,221    17,480    18,169
Funds from operations (3)        $42,115  $42,003   $82,629   $84,305


Weighted average common shares
 outstanding                     128,810  130,619   128,809   131,103

Per common share:
  Basic and diluted net income available
   for common shareholders (2)     $0.17    $0.16     $0.30     $0.34
  Funds from operations from property
   operations (3)                  $0.26    $0.25     $0.51     $0.50
 Funds from operations (3)         $0.33    $0.32     $0.64     $0.64

(1) HRPT accounts for its common share investments in SNH and HPT
    using the GAAP equity method of accounting. Accordingly, HRPT
    recognized a loss of $1.4 million during the six months ended June
    30, 2002, reflecting the issuance of shares by SNH at a price
    below HRPT's per-share carrying value.

(2) The decline in net income and net income available for common
    shareholders for the six months ended June 30, 2002, compared to
    the prior 2001 period, is primarily the result of the following:

    (i)   The 2002 period includes an extraordinary loss of $3.3
          million resulting from the prepayment of $160 million of
          term debt due later in 2002. This debt was refinanced with
          new 10-year unsecured 6.95% senior notes in April 2002. The
          2001 period also included a loss on early extinguishment of
          debt but for a lesser amount of $2.1 million;
    (ii)  During 2001, HRPT collected a mortgage loan which had been
          previously reserved. This successful collection effort
          resulted in the reversal of prior reserves and non-recurring
          income of $4 million in 2001;
    (iii) The 2002 period includes a non-cash, non-recurring loss of
          $1.4 million recognized by HRPT under the equity method of
          accounting which resulted when HRPT's former subsidiary,
          SNH, issued equity in February 2002 at a price below the
          carrying value per share of HRPT's continuing share
          ownership in SNH; and
    (iv)  HRPT issued $200 million of Series A Preferred Shares in
          February 2001. The 2001 period includes a partial period
          deduction of preferred distributions in the calculation of
          net income available for common shareholders, and the 2002
          period includes preferred distributions for the full period.

(3) HRPT computes FFO as net income available for common shareholders,
    adjusted for its pro rata share of FFO of HPT and SNH, and
    excluding depreciation, amortization (except amortization of
    deferred finance costs), gains on sales of properties and
    extraordinary and non-recurring items. HRPT considers FFO to be an
    appropriate measure of performance for a REIT, along with cash
    flow from operating activities, financing activities and investing
    activities, because it provides investors with an indication of an
    equity REIT's operating performance and its ability to incur and
    service debt, make capital expenditures, pay distributions and
    fund other cash needs. HRPT's method of computing FFO may not be
    comparable to FFO reported by other REITs that define the term
    differently. HRPT's FFO is an important factor considered by
    HRPT's Board of Trustees in determining the amount of
    distributions to shareholders. 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.

Balance Sheet Data:                              June 30, December 31,
                                                    2002         2001
Assets
Real estate investments, at cost               $2,714,447  $2,592,487
Accumulated depreciation                         (250,449)   (219,140)
                                                2,463,998   2,373,347
Equity investments                                267,586     273,442
Other assets                                      119,125     158,637
                                               $2,850,709  $2,805,426

Liabilities and Shareholders' Equity
Indebtedness                                   $1,155,237  $1,097,217
    Other liabilities                              51,542      51,709
  Shareholders' equity:
  Preferred (8,000,000 shares outstanding)        193,086     193,086
  Common (128,810,247 and 128,808,747 shares
   outstanding)                                 1,450,844   1,463,414
                                               $2,850,709  $2,805,426

                        HRPT Properties Trust
                           Additional Data

HRPT has determined to publish the following Additional Data (dollar
amounts are in thousands).

    --  Total revenues include non-cash straight-line rent adjustments
        and lease termination fees as follows:

                                    Quarter Ended    Six Months Ended
                                       June 30,           June 30,
                                    2002     2001      2002      2001

Non-Cash Straight-Line Rent
 Adjustments                      $2,660   $2,249    $4,824    $4,465
Lease Termination Fees              $347   $1,665    $1,372    $1,749

    --  Equity in earnings, FFO and cash distributions from equity
        investments includes earnings, FFO and cash distributions from
        Hospitality Properties Trust ("HPT") and Senior Housing
        Properties Trust ("SNH") as follows:

                                    Quarter Ended    Six Months Ended
                                       June 30,           June 30,
                                    2002     2001      2002     2001

Equity in Earnings of Equity Investments:
HPT                               $2,031   $1,949    $3,875    $3,803
SNH                                2,312    1,239     5,183     2,547
                                  $4,343   $3,188    $9,058    $6,350

FFO from Equity Investments:
HPT                               $4,017   $4,063    $7,802    $8,028
SNH                                4,785    5,158     9,678    10,141
                                  $8,802   $9,221   $17,480   $18,169

Cash Distributions from Equity Investments:
HPT                               $2,840   $2,800    $5,680    $5,600
SNH                                3,970    3,843     7,813     7,686
                                  $6,810   $6,643   $13,493   $13,286

    --  Capitalized expenditures for building maintenance, tenant
        improvements and leasing commissions (excluding development
        and redevelopment activities) were as follows:

                                    Quarter Ended    Six Months Ended
                                       June 30,           June 30,
                                    2002     2001      2002      2001

                                  $8,326  $10,169   $16,292   $16,109

    --  Capitalized expenditures for development and redevelopment
        activities were as follows:

                                    Quarter Ended    Six Months Ended
                                       June 30,           June 30,
                                    2002    2001       2002    2001

 Costs Incurred                   $4,510   $1,814    $5,300    $4,481
 Capitalized Interest             $1,283     $167    $1,443      $523

    --  Property occupancy decreased from 94% at June 30, 2001, to 92%
        at June 30, 2002. Property occupancy includes all space under
        lease and space which is being fitted out or otherwise
        prepared for occupancy pursuant to signed leases. Property
        occupancy at March 31, 2002, was 92%.

    --  For the 185 properties owned by HRPT for the full quarters
        ended June 30, 2002 and 2001 ("same store properties"): total
        revenues decreased to $92,937 from $95,668, and total expenses
        decreased to $33,767 from $34,447. These same store properties
        constitute approximately 18.7 million square feet and 93% of
        the office properties owned by HRPT on June 30, 2002. Same
        store revenues and expenses exclude gains on land sales, lease
        termination revenues and non-recurring property operating
        income and expenses.

    --  Rents charged for approximately 797,000 square feet of office
        space which were renewed or released during the quarter ended
        June 30, 2002, were approximately 7% higher than rents
        previously charged for the same space.