HRPT Properties Trust Announces Financial Results for the Quarter Ended March 31, 2002.

Business Editors

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

HRPT Properties Trust (NYSE: HRP) today announced its financial results for the quarter ended March 31, 2002, together with comparative results for the 2001 period as follows: -O-

               (in thousands, except per share amounts)

                                             Quarter Ended March 31,
                                               2002           2001


Revenues                                    $ 98,675       $ 99,830
Net income                                  $ 21,164       $ 25,796
Net income available for
 common shareholders                        $ 16,226       $ 23,766
FFO from property operations                $ 31,836       $ 33,354
FFO                                         $ 40,514       $ 42,302
Weighted average common
 shares outstanding                          128,809        131,593
Per common share:
  Basic and diluted net income
   available for common
   shareholders                             $   0.13       $   0.18
  FFO from property operations              $   0.25       $   0.25
  FFO                                       $   0.31       $   0.32

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

The decline in net income and net income available for common shareholders is primarily the result of the following:

(i) The 1Q02 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 by the issuance of new 10 year unsecured 6.95% bonds in April 2002 after the end of the first quarter. The 1Q01 period also included a loss on early extinguishment of debt but for a lesser amount of $1.8 million;

(ii) During 1Q01, 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 1Q01;

(iii) The 1Q02 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, Senior Housing Properties Trust ("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 1Q01 period includes a partial period deduction of preferred dividends in the calculation of net income available for common shareholders, and the 1Q02 period includes preferred dividends for the full period.

Funds from Operations ("FFO") is net income available for common shareholders adjusted as follows: (a) excluding equity in earnings of equity investments, the reversal of impairment of assets, extraordinary items, and loss on equity transactions; plus (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

On March 26, 2002, HRPT redeemed at par plus a premium, all of its $160 million 6.875% senior notes due August 2002. The redemption was funded with borrowings under HRPT's credit facility. 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 first quarter of 2002, HRPT acquired nine office buildings containing approximately 700,000 square feet for $88 million, including closing costs. These properties were 90% 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. During the first quarter of 2002, HRPT also disposed of one smaller property for $700,000 which had been acquired in a portfolio transaction.

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 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 March 31,
                                                  2002          2001
Revenues:
   Rent and other income                      $  98,675     $  99,830
Expenses:
   Operating expenses                            35,605        35,035
   Interest                                      20,910        24,199
   Depreciation and amortization                 17,221        16,007
   General and administrative                     3,725         4,093
   Non-recurring item:
     Impairment of assets                            --        (3,955)
       Total expenses                            77,461        75,379
Income before equity in earnings
 of equity investments and
 extraordinary item                              21,214        24,451
Equity in earnings of equity
 investments of Senior
 Housing Properties Trust and
 Hospitality Properties Trust                     4,715         3,162
Loss on equity transaction of
 equity investments (1)                          (1,421)           --
Extraordinary item - early
 extinguishment of debt                          (3,344)       (1,817)
Net income                                       21,164        25,796
Preferred distributions                          (4,938)       (2,030)
Net income available for common
 shareholders                                 $  16,226     $  23,766

Calculation of FFO:
Income before equity in earnings
 of equity investments and
 extraordinary item                           $  21,214     $  24,451
Non-recurring item                                   --        (3,955)
Preferred distributions                          (4,938)       (2,030)
Depreciation and non-cash expenses               15,560        14,888
Funds from operations from
 property operations (2)                         31,836        33,354
Funds from operations from
 equity investments of Senior Housing
 Properties Trust and Hospitality
 Properties Trust (2)                             8,678         8,948
Funds from operations (2)                     $  40,514     $  42,302


Weighted average common shares
 outstanding                                    128,809       131,593

Per common share:
   Basic and diluted net income
    available for common                      $    0.13     $    0.18
    shareholders
   Funds from operations from
    property operations (2)                   $    0.25     $    0.25
   Funds from operations (2)                  $    0.31     $    0.32

(1) HRPT accounts for its common share investments in SNH and Hospitality Properties Trust, or HPT, using the GAAP equity method of accounting. Accordingly, HRPT recognized a loss of $1.4 million during the quarter ended March 31, 2002, reflecting the issuance of shares by SNH at a price below HRPT's per-share carrying value.

(2) 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 principals, 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.

                         HRPT Properties Trust
                         Financial Information
                            (in thousands)

                                            March 31,     December 31,
                                              2002            2001

Balance Sheet Data:

Assets
Real estate investments, at cost          $2,686,544      $2,592,487
Accumulated depreciation                    (234,717)       (219,140)
                                           2,451,827       2,373,347
Equity investments                           270,053         273,442
Other assets                                 121,534         158,637
                                          $2,843,414      $2,805,426

Liabilities and Shareholders' Equity

Indebtedness                              $1,145,577      $1,097,217
Other liabilities                             49,808          51,709
Shareholders' equity                       1,648,029       1,656,500
                                          $2,843,414      $2,805,426

HRPT Properties Trust

Additional Data

HRPT has determined to publish the following Additional Data which is intended to respond to frequently asked questions (dollar amounts are in thousands).

--Total revenues include non-cash straight-line rent adjustments of $2,164 and $2,216 for the quarters ended March 31, 2002 and 2001, respectively.

--Equity in earnings and FFO from equity investments includes earnings and FFO from Hospitality Properties Trust ("HPT") and Senior Housing Properties Trust ("SNH") for the quarters ended March 31, 2002 and 2001, as follows:

    Equity in Earnings from   FFO from Equity  Cash Distributions from
      Equity Investments        Investments       Equity Investments
        2002       2001       2002       2001        2002       2001

HPT    $1,844     $1,854     $3,785     $3,965      $2,840     $2,800
SNH     2,871      1,308      4,893      4,983       3,843      3,843
       $4,715     $3,162     $8,678     $8,948      $6,683     $6,643

-- Capitalized expenditures for building maintenance, tenant improvements and leasing commissions (excluding development and redevelopment activities) for the quarters ended March 31, 2002 and 2001, were $7,966 and $5,940, respectively.

--For the 186 properties owned by HRPT for the full quarters ended March 31, 2002 and 2001 ("same store properties"): total revenues decreased to $93,456 from $95,672, and total expenses decreased to $34,298 from $34,615. These same store properties constitute approximately 19 million square feet and 95% of the office properties owned by HRPT on March 31, 2002.

--Same store revenues and expenses exclude gains on land sales, lease termination revenues and non-recurring property operating income and expenses.

--Property occupancy decreased from 96% at March 31, 2001, to 92% at March 31, 2002. Property occupancy includes all properties under lease including some properties which the tenant is attempting to sublease and some properties which are being fitted out or otherwise prepared for occupancy.

--Rents charged for approximately 225,000 square feet of office space which were renewed or released during the quarter ended March 31, 2002, were approximately 25% higher than rents previously charged for the same space.