CommonWealth REIT Announces 2012 Fourth Quarter and Year End Results

  CommonWealth REIT Announces 2012 Fourth Quarter and Year End Results

Business Wire

NEWTON, Mass. -- February 25, 2013

CommonWealth REIT (NYSE: CWH) today announced financial results for the
quarter and year ended December 31, 2012.

Results for the Quarter Ended December 31, 2012:

Normalized funds from operations, or Normalized FFO, available for
CommonWealth REIT common shareholders for the quarter ended December 31, 2012
was $68.7 million, or $0.82 per share basic and diluted, compared to
Normalized FFO available for CommonWealth REIT common shareholders for the
quarter ended December 31, 2011 of $63.8 million, or $0.76 per share basic and
diluted.

Net (loss) income available for CommonWealth REIT common shareholders was
($163.9) million for the quarter ended December 31, 2012, compared to $1.1
million for the same quarter last year. Net (loss) income available for
CommonWealth REIT common shareholders per share, basic and diluted (EPS), for
the quarters ended December 31, 2012 and 2011 was ($1.96) and $0.01,
respectively. Net loss for the quarter ended December 31, 2012 includes a loss
on asset impairment of $168.6 million, or $2.01 per share, partially offset by
a gain of $7.2 million, or $0.09 per share, from the issuance of shares by an
equity investee.

The weighted average number of basic and diluted common shares outstanding was
83,804,068 and 91,102,233, respectively, for the quarter ended December 31,
2012, and 83,721,736 and 91,019,901, respectively, for the quarter ended
December 31, 2011.

A reconciliation of net (loss) income attributable to CommonWealth REIT,
determined according to U.S. generally accepted accounting principles, or
GAAP, to funds from operations, or FFO, available for CommonWealth REIT common
shareholders and Normalized FFO available for CommonWealth REIT common
shareholders for the quarters ended December 31, 2012 and 2011 appears later
in this press release.

Results for the Year Ended December 31, 2012:

Normalized FFO available for CommonWealth REIT common shareholders for the
year ended December 31, 2012 was $283.8 million, or $3.39 per share basic and
diluted, compared to Normalized FFO available for CommonWealth REIT common
shareholders for the year ended December 31, 2011 of $261.6 million, or $3.38
per share basic and diluted.

Net (loss) income available for CommonWealth REIT common shareholders was
($152.0) million for the year ended December 31, 2012, compared to $63.0
million for the same period last year. Net (loss) income available for
CommonWealth REIT common shareholders per share, basic and diluted (EPS), for
the years ended December 31, 2012 and 2011 was ($1.81) and $0.81,
respectively. Net loss for the year ended December 31, 2012 includes a loss on
asset impairment of $168.6 million, or $2.01 per share, partially offset by
gains of $7.2 million, or $0.09 per share, from the issuance of shares by an
equity investee and $2.0 million, or $0.02 per share, from gain on the sale of
properties. Net income for the year ended December 31, 2011 includes gains of
$42.8 million, or $0.55 per share, from the sale of properties and $11.2
million, or $0.14 per share, from the issuance of shares by an equity
investee, partially offset by a loss on asset impairment totaling $10.4
million, or $0.13 per share.

The weighted average number of basic and diluted common shares outstanding was
83,749,644 and 91,047,809, respectively, for the year ended December 31, 2012,
and 77,428,210 and 84,726,375, respectively, for the year ended December 31,
2011.

A reconciliation of net (loss) income attributable to CommonWealth REIT,
determined according to GAAP, to FFO available for CommonWealth REIT common
shareholders and Normalized FFO available for CommonWealth REIT common
shareholders for the years ended December 31, 2012 and 2011 appears later in
this press release.

Occupancy and Leasing Results:

As of December 31, 2012, 90.0% of CWH’s total square feet from continuing
operations was leased, compared to 89.6% as of December 31, 2011 and 89.5% as
of September 30, 2012.

CWH entered into lease renewals for 2,200,000 square feet and new leases for
758,000 square feet during the quarter ended December 31, 2012 which had
weighted average rental rates that were 5% above prior rents for the same
space. The weighted average lease terms for leases entered into during the
fourth quarter of 2012 were 7.0 years. Commitments for tenant improvements,
leasing commission costs and concessions for leases entered into during the
quarter ended December 31, 2012 totaled $1.94 per square foot per year of
lease term on average.

Recent Acquisition and Sales Activities:

Since the announcement of 2012 third quarter results on November 7, 2012, CWH
has not acquired or entered into any agreements to purchase properties
(excluding transactions by Select Income REIT, or SIR, CWH’s majority owned
consolidated subsidiary).

During 2012, CWH sold three properties with a combined 298,762 square feet for
a total of $11.7 million, excluding closing costs. In addition, as of December
31, 2012, 94 properties with a combined 6,673,851 square feet located
throughout the United States were either listed or in the process of being
listed for sale with third party brokers. After December 31, 2012, CWH sold 18
of these properties with a combined 1,060,026 square feet for a total of $10.3
million, excluding closing costs. As of today, CWH also has two properties
with a combined 675,250 square feet under agreement to sell for a total of
$5.1 million, excluding closing costs. CWH expects to sell these two
properties and the remaining properties listed for sale during 2013; however,
no assurance can be given that any of the properties will be sold in that time
period or at all.

As of December 31, 2012, the 94 properties that were either listed or in the
process of being listed for sale were reclassified to discontinued operations,
and CWH recorded asset impairment charges totaling $168.6 million relating to
these properties. As of December 31, 2012, these 94 properties were 26.5%
leased for a weighted average term of 2.5 years (based on annualized rental
income) and generated a $1.2 million net operating loss during the year ended
December 31, 2012. As of December 31, 2012, these 94 properties had a combined
net book value of approximately $333.0 million (before $168.6 million of
impairment charges).

Recent Financing Activities:

In December 2012, CWH repaid at maturity $57.0 million of its floating rate
term debt using borrowings under its revolving credit facility.

Also in December 2012, CWH’s majority owned consolidated subsidiary, SIR,
completed a public offering of 8,050,000 of its common shares (including
1,050,000 common shares sold pursuant to the underwriters’ option to purchase
additional shares) for gross proceeds (before deducting underwriters’
discounts and estimated expenses) of $193.2 million. SIR owns substantially
all of CWH’s consolidated commercial and industrial properties located in
Oahu, HI, as well as 38 suburban office and industrial properties located
throughout the mainland United States. After this offering, CWH continues to
own 22,000,000, or approximately 56.0%, of SIR’s common shares.

Presentation:

Unless otherwise noted, the amounts reported above are on a consolidated basis
and, as such, include the results of CWH’s consolidated subsidiary, SIR,
including the effect of SIR’s minority interests since March 2012, when SIR
became a public company with common shares registered under the Securities
Exchange Act of 1934, as amended. For further information about SIR and its
subsidiaries, please see SIR’s periodic reports and other filings with the
Securities and Exchange Commission, or the SEC, which are available at the
SEC’s website at www.sec.gov. References in this press release to SIR’s
filings with the SEC are included to identify the source of SIR information
only, and the information in SIR’s filings with the SEC is not incorporated by
reference into this press release.

Conference Call:

Later today, at 10:00 a.m. Eastern Time, Adam Portnoy, President and Managing
Trustee, and John Popeo, Chief Financial Officer, will host a conference call
to present the financial results for the quarter and year ended December 31,
2012. The conference call will not have a question and answer period. A
replay, if any, will be announced at a future time.

The conference call telephone number is (800) 230-1096. Participants calling
from outside the United States and Canada should dial (612) 332-0725. No pass
code is necessary to access either call. Participants should dial in about 15
minutes prior to the scheduled start of the call.

The transcription, recording and retransmission in any way of CWH’s fourth
quarter conference call is strictly prohibited without the prior written
consent of CWH.

Supplemental Data:

A copy of CWH’s Fourth Quarter 2012 Supplemental Operating and Financial Data
is available for download at CWH’s website, www.cwhreit.com. CWH’s website is
not incorporated as part of this press release.

CommonWealth REIT is a real estate investment trust which primarily owns
office properties located throughout the United States. CWH is headquartered
in Newton, MA.

Please see the pages attached hereto for a more detailed statement of our
operating results and financial condition and for an explanation of our
calculation of FFO and Normalized FFO.

WARNING CONCERNING FORWARD LOOKING STATEMENTS

THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING
STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER CWH USES WORDS SUCH AS
“BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE” OR SIMILAR
EXPRESSIONS, CWH IS MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING
STATEMENTS ARE BASED UPON CWH’S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT
FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR.
ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY
THESE FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:

  *THIS PRESS RELEASE STATES THAT CWH HAS ENTERED INTO AGREEMENTS TO SELL
    PROPERTIES. THESE TRANSACTIONS ARE SUBJECT TO VARIOUS TERMS AND CONDITIONS
    TYPICAL OF COMMERCIAL REAL ESTATE TRANSACTIONS. THE TERMS AND CONDITIONS
    MAY NOT BE MET. AS A RESULT, THESE TRANSACTIONS MAY NOT OCCUR OR MAY BE
    DELAYED OR THE TERMS MAY CHANGE, AND
  *THIS PRESS RELEASE STATES THAT CWH INTENDS TO SELL IN 2013 THE REMAINING
    PROPERTIES NOT ALREADY SOLD THAT WERE RECLASSIFIED TO DISCONTINUED
    OPERATIONS AS OF DECEMBER 31, 2012. HOWEVER, CWH MAY BE UNABLE TO SELL
    SOME OR ALL OF THESE PROPERTIES IN 2013 OR EVER.

THE INFORMATION CONTAINED IN CWH’S FILINGS WITH THE SEC, INCLUDING UNDER THE
CAPTION "RISK FACTORS" IN CWH’S PERIODIC REPORTS, OR INCORPORATED THEREIN,
IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE DIFFERENCES FROM CWH’S
FORWARD LOOKING STATEMENTS. CWH’S FILINGS WITH THE SEC ARE AVAILABLE ON THE
SEC’S WEBSITE AT WWW.SEC.GOV.

YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.

EXCEPT AS REQUIRED BY LAW, CWH DOES NOT INTEND TO UPDATE OR CHANGE ANY FORWARD
LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

                                                           
CommonWealth REIT
Consolidated Statements of Operations, Funds from Operations and Normalized
Funds from Operations
(amounts in thousands)
(unaudited)
                                                                    
                     Quarter Ended December 31,   Year Ended December 31,
                     2012          2011         2012           2011       
                                                                    
Rental income        $ 264,692     $ 233,528    $ 1,013,092    $ 874,232  
                                                                    
Expenses:
Operating              113,421        99,342        419,681         363,464
expenses
Depreciation
and                    66,950         56,809        245,729         206,697
amortization
General and            13,738         11,711        51,697          43,682
administrative
Loss on asset          -              (233    )     -               3,036
impairment
Acquisition           646          351         5,648         10,073   
related costs
Total expenses        194,755      167,980     722,755       626,952  
                                                                    
Operating              69,937         65,548        290,337         247,280
income
                                                                    
Interest and           384            323           1,428           1,662
other income
Interest
expense
(including net
amortization
of debt
discounts,
premiums and
deferred
financing fees
of $653,
$1,476,
$3,405 and
$6,943,                (53,763  )     (49,987 )     (204,244  )     (195,024 )
respectively)
Loss on early
extinguishment         -              (345    )     (1,895    )     (35      )
of debt
Equity in
earnings of            2,765          2,987         11,420          11,377
investees
Gain on
issuance of
shares by an          7,246        -           7,246         11,177   
equity
investee
Income from
continuing
operations             26,569         18,526        104,292         76,437
before income
tax expense
Income tax            (1,301   )    (604    )    (3,207    )    (1,347   )
expense
Income from
continuing             25,268         17,922        101,085         75,090
operations
Discontinued
operations:
Loss from
discontinued           (3,906   )     (2,887  )     (14,337   )     (539     )
operations
Loss on asset
impairment
from                   (168,632 )     (1,341  )     (168,632  )     (7,319   )
discontinued
operations
Net gain on
sale of
properties            -            1,179       2,039         42,752   
from
discontinued
operations
Net (loss)             (147,270 )     14,873        (79,845   )     109,984
income
Net income
attributable
to
noncontrolling        (5,514   )    -           (15,576   )    -        
interest in
consolidated
subsidiary
Net (loss)
income
attributable           (152,784 )     14,873        (95,421   )     109,984
to
CommonWealth
REIT
Preferred              (11,151  )     (13,823 )     (51,552   )     (46,985  )
distributions
Excess
redemption
price paid
over carrying         -            -           (4,985    )    -        
value of
preferred
shares
Net (loss)
income
available for        $ (163,935 )   $ 1,050      $ (151,958  )   $ 62,999   
CommonWealth
REIT common
shareholders
                                                                    
                                                                    
Amounts
attributable
to
CommonWealth
REIT common
shareholders:
Income from
continuing           $ 8,603        $ 4,099       $ 28,972        $ 28,105
operations
Loss from
discontinued           (3,906   )     (2,887  )     (14,337   )     (539     )
operations
Loss on asset
impairment
from                   (168,632 )     (1,341  )     (168,632  )     (7,319   )
discontinued
operations
Net gain on
sale of
properties            -            1,179       2,039         42,752   
from
discontinued
operations
Net (loss)           $ (163,935 )   $ 1,050      $ (151,958  )   $ 62,999   
income
                                                                    

                                                                 
CommonWealth REIT
Consolidated Statements of Operations, Funds from Operations and Normalized Funds
from Operations (continued)
(amounts in thousands, except per share data)
(unaudited)
                                                                            
                               Quarter Ended December 31,   Year Ended December 31,
                               2012          2011         2012         2011      
Calculation of FFO:^(1)
Net (loss) income
attributable to                $ (152,784 )   $ 14,873      $ (95,421 )   $ 109,984
CommonWealth REIT
          depreciation
          and
Plus:     amortization           66,950         56,809        245,729       206,697
          from
          continuing
          operations
          depreciation
          and
Plus:     amortization           3,002          2,807         12,563        16,458
          from
          discontinued
          operations
          loss on asset
          impairment
Plus:     from                   -              (233    )     -             3,036
          continuing
          operations
          loss on asset
          impairment
Plus:     from                   168,632        1,341         168,632       7,319
          discontinued
          operations
Plus:     FFO from               5,313          5,419         21,383        19,895
          investees
          net income
          attributable
Plus:     to                     5,514          -             15,576        -
          noncontrolling
          interest
          FFO
          attributable
Less:     to                     (7,149   )     -             (19,419 )     -
          noncontrolling
          interest
          net gain on
          sale of
Less:     properties             -              (1,179  )     (2,039  )     (42,752 )
          from
          discontinued
          operations
          equity in
Less:     earnings of           (2,765   )    (2,987  )    (11,420 )    (11,377 )
          investees
FFO attributable to              86,713         76,850        335,584       309,260
CommonWealth REIT
Less:     preferred             (11,151  )    (13,823 )    (51,552 )    (46,985 )
          distributions
FFO available for
CommonWealth REIT common       $ 75,562      $ 63,027     $ 284,032    $ 262,275 
shareholders
                                                                            
Calculation of
Normalized FFO:^(1)
FFO attributable to            $ 86,713       $ 76,850      $ 335,584     $ 309,260
CommonWealth REIT
          acquisition
          related costs
Plus:     from                   646            351           5,648         10,073
          continuing
          operations
          acquisition
          related costs
Plus:     from                   -              (19     )     -             129
          discontinued
          operations
Plus:     normalized FFO         5,417          5,559         21,710        20,734
          from investees
          loss on early
          extinguishment
Plus:     of debt from           -              345           1,895         35
          continuing
          operations
          early
          extinguishment
Less:     of debt                -              -             -             (232    )
          settled in
          cash
          average
          minimum rent
Plus:     from direct            329            329           1,316         1,097
          financing
          lease
          FFO
          attributable
Plus:     to                     7,149          -             19,419        -
          noncontrolling
          interest
          normalized FFO
          attributable
Less:     to                     (7,491   )     -             (20,132 )     -
          noncontrolling
          interest
Less:     FFO from               (5,313   )     (5,419  )     (21,383 )     (19,895 )
          investees
          interest
          earned from
Less:     direct                 (333     )     (412    )     (1,452  )     (1,448  )
          financing
          lease
          gain on
          issuance of
Less:     shares by an          (7,246   )    -           (7,246  )    (11,177 )
          equity
          investee
Normalized FFO
attributable to                  79,871         77,584        335,359       308,576
CommonWealth REIT
Less:     preferred             (11,151  )    (13,823 )    (51,552 )    (46,985 )
          distributions
Normalized FFO available
for CommonWealth REIT          $ 68,720      $ 63,761     $ 283,807    $ 261,591 
common shareholders
                                                                            
Weighted average common
shares outstanding –            83,804       83,722      83,750      77,428  
basic
                                                                            
Weighted average common
shares outstanding –            91,102       91,020      91,048      84,726  
diluted^(2)
                                                                            
Per common share:
Income from continuing
operations attributable
to
CommonWealth REIT common
shareholders – basic and       $ 0.10         $ 0.05        $ 0.35        $ 0.36
diluted
(Loss) income from
discontinued operations
attributable to
CommonWealth REIT common
shareholders – basic and       $ (2.06    )   $ (0.04   )   $ (2.16   )   $ 0.45
diluted
Net (loss) income
available for
CommonWealth REIT common
shareholders – basic and       $ (1.96    )   $ 0.01        $ (1.81   )   $ 0.81
diluted
FFO available for
CommonWealth REIT common
shareholders – basic           $ 0.90         $ 0.75        $ 3.39        $ 3.39
FFO available for
CommonWealth REIT common
shareholders – diluted         $ 0.90         $ 0.75        $ 3.39        $ 3.39
Normalized FFO available
for CommonWealth REIT
common
shareholders – basic and       $ 0.82         $ 0.76        $ 3.39        $ 3.38
diluted
                                                                            

     
       CommonWealth REIT
       Consolidated Statements of Operations, Funds from Operations and
       Normalized Funds from Operations (continued)
       (amounts in thousands)
       (unaudited)
       
       CWH calculates FFO and Normalized FFO as shown above. FFO is calculated
       on the basis defined by The National Association of Real Estate
       Investment Trusts, or NAREIT, which is net (loss) income, calculated in
       accordance with GAAP, plus real estate depreciation and amortization,
       loss on asset impairment, net (loss) income attributable to
       noncontrolling interest and FFO from equity investees, excluding any
       gain or loss on sale of properties, earnings from equity investees and
       FFO attributable to noncontrolling interest. CWH’s calculation of
       Normalized FFO differs from NAREIT's definition of FFO because it
       excludes acquisition related costs, gains from issuance of shares by
       equity investees, gain and loss on early extinguishment of debt unless
       settled in cash, the difference between average minimum rent and
       interest earned from CWH’s direct financing lease and the difference
       between FFO and Normalized FFO from equity investees and noncontrolling
       interest. CWH considers FFO and Normalized FFO to be appropriate
       measures of operating performance for a REIT, along with net (loss)
       income, net (loss) income attributable to CommonWealth REIT, net (loss)
       income available for CommonWealth REIT common shareholders, operating
       income and cash flow from operating activities. CWH believes that FFO
       and Normalized FFO provide useful information to investors because by
       excluding the effects of certain historical amounts, such as
       depreciation expense, FFO and Normalized FFO may facilitate a
       comparison of its operating performance between periods. FFO and
       Normalized FFO are among the factors considered by CWH’s Board of
(1)    Trustees when determining the amount of distributions to shareholders.
       Other factors include, but are not limited to, requirements to maintain
       CWH’s status as a REIT, limitations in its credit facilities and term
       loan agreements and public debt covenants, the availability of debt and
       equity capital to CWH, CWH’s cash available for distribution, CWH’s
       expectation of its future capital requirements and operating
       performance, and CWH’s expected needs and availability of cash to pay
       its obligations. FFO and Normalized FFO do not represent cash generated
       by operating activities in accordance with GAAP and should not be
       considered as alternatives to net (loss) income, net (loss) income
       attributable to CommonWealth REIT, net (loss) income available for
       CommonWealth REIT common shareholders, operating income or cash flow
       from operating activities, determined in accordance with GAAP, or as
       indicators of CWH’s financial performance or liquidity, nor are these
       measures necessarily indicative of sufficient cash flow to fund all of
       CWH’s needs. CWH believes that FFO and Normalized FFO may facilitate an
       understanding of its consolidated historical operating results. These
       measures should be considered in conjunction with net (loss) income,
       net (loss) income attributable to CommonWealth REIT, net (loss) income
       available for CommonWealth REIT common shareholders, operating income
       and cash flow from operating activities as presented in CWH’s
       Consolidated Statements of Operations, Consolidated Statements of
       Comprehensive (Loss) Income and Consolidated Statements of Cash Flows.
       Other REITs and real estate companies may calculate FFO and Normalized
       FFO differently than CWH does.
       
       As of December 31, 2012, CWH’s 15,180 outstanding series D preferred
       shares were convertible into 7,298 common shares. The effect of a
       conversion of CWH’s series D convertible preferred shares on income
       from continuing operations available for CommonWealth REIT common
^(2)   shareholders per share is anti-dilutive to income, FFO and Normalized
       FFO for most periods presented. Set forth below is the calculation of
       diluted net income available for common shareholders, diluted FFO
       available for common shareholders, diluted Normalized FFO available for
       common shareholders and diluted weighted average common shares
       outstanding.
       

                                                 
                         Quarter Ended December 31,   Year Ended December 31,
                           2012          2011      2012        2011
                                                                       
Net (loss) income
available for
CommonWealth REIT        $  (163,935  )    $ 1,050    $ (151,958 )   $ 62,999
common
shareholders
Add - Series D
convertible                 6,167            6,167      24,668         24,668
preferred
distributions
Net (loss) income
available for                                                   
CommonWealth REIT
common
shareholders --          $  (157,768  )    $ 7,217    $ (127,290 )   $ 87,667
diluted
                                                                       
FFO available for
CommonWealth REIT        $  75,562         $ 63,027   $ 284,032      $ 262,275
common
shareholders
Add - Series D
convertible                6,167          6,167     24,668       24,668
preferred
distributions
FFO available for
CommonWealth REIT
common                   $  81,729        $ 69,194   $ 308,700     $ 286,943
shareholders –
diluted
                                                                       
Normalized FFO
available for
CommonWealth REIT        $  68,720         $ 63,761   $ 283,807      $ 261,591
common
shareholders
Add - Series D
convertible                 6,167            6,167      24,668         24,668
preferred
distributions
Normalized FFO
available for                                                   
CommonWealth REIT
common
shareholders –           $  74,887        $ 69,928   $ 308,475     $ 286,259
diluted
                                                                       
Weighted average
common shares               83,804           83,722     83,750         77,428
outstanding –
basic
Effect of dilutive
Series D preferred         7,298          7,298     7,298        7,298
shares
Weighted average
common shares              91,102         91,020    91,048       84,726
outstanding –
diluted
                                                                       

                                                            
CommonWealth REIT
Consolidated Balance Sheets
(amounts in thousands, except share data)
(unaudited)
                                                                   
                                                 As of December 31,
                                                 2012            2011
ASSETS
Real estate properties:
Land                                             $ 1,531,416     $ 1,450,154
Buildings and improvements                        6,297,993      5,794,078
                                                   7,829,409       7,244,232
Accumulated depreciation                          (1,007,606)    (934,170)
                                                   6,821,803       6,310,062
Properties held for sale                           171,832         -
Acquired real estate leases, net                   427,756         343,917
Equity investments                                 184,711         177,477
Cash and cash equivalents                          102,219         192,763
Restricted cash                                    16,626          7,869
Rents receivable, net of allowance for
doubtful accounts of $9,962
and $12,575, respectively                          253,394         217,592
Other assets, net                                 211,293        197,346
Total assets                                     $ 8,189,634     $ 7,447,026
                                                                   
LIABILITIES AND SHAREHOLDERS' EQUITY
Revolving credit facility                        $ 297,000       $ 100,000
SIR revolving credit facility                      95,000          -
Senior unsecured debt, net                         2,972,994       2,845,030
Mortgage notes payable, net                        984,827         632,301
Liabilities related to properties held for         2,339           -
sale
Accounts payable and accrued expenses              194,184         158,272
Assumed real estate lease obligations, net         69,304          70,179
Rent collected in advance                          35,700          37,653
Security deposits                                  23,860          23,779
Due to related persons                            12,958         11,295
Total liabilities                                 4,688,166      3,878,509
                                                                   
Commitments and contingencies
                                                                   
Shareholders' equity:
Shareholder's equity attributable to
CommonWealth REIT:
Preferred shares of beneficial interest,
$0.01 par value:
50,000,000 shares authorized;
Series C preferred shares; 7 1/8%
cumulative redeemable since
February 15, 2011; zero and 6,000,000
shares issued and outstanding,
respectively, aggregate liquidation                -               145,015
preference $150,000
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
Series E preferred shares; 7 1/4%
cumulative redeemable on or after
May 15, 2016; 11,000,000 shares issued and
outstanding,
aggregate liquidation preference $275,000          265,391         265,391
Common shares of beneficial interest,
$0.01 par value:
350,000,000 shares authorized; 83,804,068
and 83,721,736 shares issued
and outstanding, respectively                      838             837
Additional paid in capital                         3,585,400       3,614,079
Cumulative net income                              2,386,900       2,482,321
Cumulative other comprehensive income              565             (4,709)
(loss)
Cumulative common distributions                    (2,972,569)     (2,826,030)
Cumulative preferred distributions                (529,367)      (476,657)
Total shareholders' equity attributable to         3,105,428       3,568,517
CommonWealth REIT
Noncontrolling interest in consolidated           396,040        -
subsidiary
Total shareholders' equity                        3,501,468      3,568,517
Total liabilities and shareholders' equity       $ 8,189,634     $ 7,447,026
                                                                   

A Maryland Real Estate Investment Trust with transferable shares of beneficial
  interest listed on the New York Stock Exchange. No shareholder, Trustee or
     officer is personally liable for any act or obligation of the Trust.

Contact:

CommonWealth REIT
Timothy A. Bonang, Vice President, Investor Relations
Carlynn Finn, Senior Manager, Investor Relations
617-796-8222
www.cwhreit.com