Company To Hold First REIT IPO In A Year

More than one year after the last REIT went public, a company specializing in leasing properties to government tenants is preparing to hold an initial public offering.

Massachusetts-based Government Properties Income Trust, a subsidiary of HRPT Properties Trust (NYSE: HRP), is slated to hit the New York Stock Exchange the week of June 1, trading under the symbol "GOV." Wachovia Securities, Merrill Lynch and Morgan Stanley are serving as the lead underwriters on the deal. The offering will consist of 10 million new shares of common stock priced between $20 and $22. Once the offering is completed, HRPT is expected to hold slightly less than 50 percent of the Government Properties' total common shares, according to documents filed with the Securities and Exchange Commission on May 28.

Government Properties currently owns 29 properties across 14 states and the District of Columbia. Of the company's 3.3 million square feet of rentable space, 95 percent has been leased for federal and state government tenants.

Residential mortgage REIT American Capital Agency Corporation (NYSE: AGNC), the last REIT to go public, held its initial offering in May 2008.