Government Properties Trust Makes Strong Public Debut

OMAHA, NE-Government Properties Trust, a REIT that invests in single-tenant properties leased to the federal government, made a strong debut on the NYSE Tuesday under the symbol GPP. The locally based company offered 16.8 million shares to the public at $10 per share and by the end of the day more than 11 million shares traded hands at between $12.50 and $14.01 per share. At close of markets, the share price stood at $13.03, up 30% on the day.

Government Properties Trust acquires and manages recently built or renovated office properties primarily leased to the federal government under long-term leases. Its tenants include the Department of Justice, the Drug Enforcement Administration, the Federal Bureau of Investigation and the Social Security Administration.

The company’s existing portfolio includes five properties totaling 248,000 sf with an average remaining lease term of about 12.5 years. In its regulatory filing with the SEC, the company says about $129 million of the estimated $159 million in net proceeds will be used to acquire eight GSA-leased properties totaling approximately 487,000 sf that have an average remaining lease term of 14 years. The new acquisitions will have a 75% loan-to-cost ratio, according to the company.