Office Properties Income Trust
NASDAQ:OPI
Office Properties Income Trust
Office Properties Income Trust owns, operates and leases office buildings to single tenants and multi-tenant buildings. The company is headquartered in Newton, Massachusetts and currently employs 0 full-time employees. The company went IPO on 2009-06-03. The firm is focused on owning and leasing office properties primarily to single tenants and those with credit quality characteristics. Its primary investment objectives include acquiring properties that produce yields that are greater than the yields of properties it is disposing in connection with its capital recycling program, as well as acquiring properties with yields that are greater than Company’s cost of capital. The firm owns and leases approximately 170 properties with over 23 million square feet located in approximately 33 states and Washington, D.C. Its properties include 445 Jan Davis Drive, 131 Clayton Street, 4344 Carmichael Road, 15451 North 28th Avenue, 16001 North 28th Avenue, 711 S 14th Avenue, Regents Center, Campbell Place, Folsom Corporate Center, Bayside Technology Park, Bayside Technology Park, 10949 N. Mather Boulevard, 9815 Goethe Road, Capitol Place, and 11020 Sun Center Drive.
Office Properties Income Trust owns, operates and leases office buildings to single tenants and multi-tenant buildings. The company is headquartered in Newton, Massachusetts and currently employs 0 full-time employees. The company went IPO on 2009-06-03. The firm is focused on owning and leasing office properties primarily to single tenants and those with credit quality characteristics. Its primary investment objectives include acquiring properties that produce yields that are greater than the yields of properties it is disposing in connection with its capital recycling program, as well as acquiring properties with yields that are greater than Company’s cost of capital. The firm owns and leases approximately 170 properties with over 23 million square feet located in approximately 33 states and Washington, D.C. Its properties include 445 Jan Davis Drive, 131 Clayton Street, 4344 Carmichael Road, 15451 North 28th Avenue, 16001 North 28th Avenue, 711 S 14th Avenue, Regents Center, Campbell Place, Folsom Corporate Center, Bayside Technology Park, Bayside Technology Park, 10949 N. Mather Boulevard, 9815 Goethe Road, Capitol Place, and 11020 Sun Center Drive.
Revenue Decline: Annualized revenue dropped by nearly 18% year-over-year to $398 million, reflecting ongoing leasing challenges in the office sector.
Dividend Suspended: OPI's Board suspended the quarterly dividend to preserve approximately $3 million in annual cash.
Leasing Activity: 15 leases totaling 416,000 square feet were signed in Q2, with rental rates 6.4% higher than previous rates for the same space.
Liquidity Concerns: The company has $90 million in cash and faces $280 million in debt principal payments due in 2026, with tight debt covenant restrictions.
FFO Beat: Normalized FFO was $0.13 per share, $0.02 above guidance, driven by lower operating expenses.
Guidance Lowered: Q3 normalized FFO is expected to decrease to $0.07–$0.09 per share, mainly due to lower rental income and higher operating expenses.
Dispositions Challenging: Property sales are slow and difficult, with declining valuations and a limited pool of buyers.
