Standard&Poor's Ratings Services' ratings on Government Properties Income Trust (GOV) reflect the REIT's "modest" financial risk profile, characterized by low leverage, above-average debt service and fixed-charge coverage, and a substantially unencumbered property portfolio. However, the company's asset base, composed of 74 office buildings (9.1 million sq. ft.), is small compared with similarly rated REITs. Also, GOV's exclusive focus on government-leased buildings could limit the REIT's growth opportunities and access to equity capital over the longer term. This contributes to our view that GOV's business risk profile is "fair." We also view GOV's shorter weighted average lease term, high percentage of floating-rate debt, and fairly aggressive dividend policy as credit weaknesses. Newton, Mass.-based GOV is a publicly held REIT
