Office Properties Income Trust (OPI) Q1 2025 Earnings Call May 01, 2025 10:00 AM ET Speaker0 Good morning and welcome to the Office Properties Income Trust First Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the call over to Kevin Barry, Senior Director of Investor Relations. Please go ahead. Speaker1 Good morning and thank you for joining us today. With me on the call are OPI's President ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34364 OFFICE PROPERTIES INCOME TRUST (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization) ...

OFFICE PROPERTIES INCOME TRUST Financial Results and Supplemental Information FIRST QUARTER 2025 April 30, 2025 Table of Contents | QUARTERLY RESULTS | | | --- | --- | | Office Properties Income Trust Announces First Quarter 2025 Financial Results First Quarter 2025 Summary . | 415 | | FINANCIALS | | | Key Financial Data Condensed Consolidated Statements of Income (Loss) | 7 - 8 | | Condensed Consolidated Balance Sheets | 9 | | Debt Summary . | 10 | | Debt Maturity Schedule | 11 | | Leverage Ratios, Coverag ...

Financial Data and Key Metrics Changes - For Q4 2024, the company reported normalized FFO of $20.9 million or $0.36 per share, which was $0.01 above guidance, compared to $22.1 million or $0.43 per share in Q3 2024 [30] - Same property cash basis NOI was $60.9 million, representing a 4.9% increase compared to Q4 2023, driven by lower operating expenses and the sale of certain vacant properties [31] Business Line Data and Key Metrics Changes - The portfolio consisted of 128 properties totaling 17.8 million square feet, generating $428 million of annualized revenue, down from $513 million a year ago [13] - Total leasing volume increased more than 20% year-over-year, with 52 leases signed for over 2 million square feet at a weighted average lease term of nearly nine years and a rental rate increase of 6.3% [19] Market Data and Key Metrics Changes - In Washington, D.C., the company's largest MSA, vacancy is nearly 33%, with leasing conditions remaining challenging [16] - The company anticipates that at least one agency, the Department of Safety and Environmental Enforcement, may terminate its lease in Q2 2025, impacting revenue [17] Company Strategy and Development Direction - The company has taken steps to address debt maturities and liquidity constraints, completing $1.8 billion in secured financings and reducing total debt principal by nearly $200 million compared to the prior year [9][10] - The company is evaluating additional disposition opportunities to mitigate occupancy risk and associated carry costs of vacant properties [28] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are positive trends in the office sector, these have not yet materialized in the company's portfolio [14] - The company expects normalized FFO for Q1 2025 to be between $0.08 and $0.10 per share, primarily driven by lower NOI due to asset sales and tenant vacancies [32] Other Important Information - The company has launched a debt exchange offer for up to $175 million of new senior guaranteed unsecured notes to address upcoming debt maturities [12][38] - The company reported a total liquidity of $113 million in cash and projected a cash burn of $60 million to $70 million from operations in 2025 [37] Summary of Q&A Session - The company did not take questions during the call due to the ongoing debt exchange offer [8][40]

Office Properties Income Trust Fourth Quarter 2024 Financial Results and Supplemental Information February 13, 2025 Richland, WA Table of Contents QUARTERLY RESULTS | Office Properties Income Trust Announces Fourth Quarter 2024 Financial Results | 4 | | --- | --- | | Fourth Quarter 2024 Highlights | 5 | | FINANCIALS | | | Key Financial Data | 7 | | Consolidated Statements of Income (Loss) | 8 | | Consolidated Balance Sheets | 9 | | Debt Summary | 10 | | Debt Maturity Schedule | 11 | | Leverage Ratios, Cover ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-34364 OFFICE PROPERTIES INCOME TRUST (Exact Name of Registrant as Specified in Its Charter) Maryland 26-4273474 (State of Organization) (I.R.S. Employer Identif ...

OFFICE PROPERTIES INCOME TRUST Office Properties Income Trust Fourth Quarter 2024 Financial Results and Supplemental Information February 13, 2025 Richland, WA Table of Contents | QUARTERLY RESULTS | | | | --- | --- | --- | | Office Properties Income Trust Announces Fourth Quarter 2024 Financial Results | | | | Fourth Quarter 2024 Highlights | 5 | | | FINANCIALS | | | | Key Financial Data | 7 | Trading ! | | Consolidated Statements of Income (Loss). | 8 | Common | | Consolidated Balance Sheets | 9 | Senior ...

Office Properties Income Trust (NASDAQ:OPI) Q3 2024 Earnings Conference Call October 31, 2024 10:00 AM ET Company Participants Kevin Barry - Senior Director, Investor Relations Yael Duffy - President and Chief Operating Officer Brian Donley - Chief Financial Officer and Treasurer Conference Call Participants Bryan Maher - B. Riley Securities Ronald Kamdem - Morgan Stanley Operator Good morning and welcome to the Office Properties Income Trust Third Quarter 2024 Earnings Conference Call. All participants wil ...

Office Properties Income Trust (OPI) came out with quarterly funds from operations (FFO) of $0.43 per share, missing the Zacks Consensus Estimate of $0.47 per share. This compares to FFO of $1.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of -8.51%. A quarter ago, it was expected that this company would post FFO of $0.64 per share when it actually produced FFO of $0.68, delivering a surprise of 6.25%. Over the last four quarters ...

Property and Occupancy - As of September 30, 2024, the company owned 145 properties with a total of approximately 19,543,000 rentable square feet, leased to 237 tenants[85] - The occupancy rate decreased to 82.8% as of September 30, 2024, down from 89.9% in 2023[91] - The average effective rental rate per square foot for all properties was $29.34 for the three months ended September 30, 2024, compared to $29.37 in 2023[92] - As of September 30, 2024, the company had leases totaling approximately 3,090,000 rentable square feet scheduled to expire through December 31, 2025[101] - The company expects tenants with leases totaling approximately 2,637,000 rentable square feet to expire through December 31, 2025, with 1,765,000 rentable square feet related to properties not encumbered by debt[101] - In 2024, 23 leases expiring represent 1,281 square feet, accounting for 7.9% of the total, with an annualized rental income of $19,914, which is 4.4% of the total[103] - In 2025, 43 leases expiring represent 1,809 square feet, accounting for 11.2% of the total, with an annualized rental income of $44,298, which is 9.8% of the total[103] - As of September 30, 2024, 24.1% of annualized rental income was derived from properties located in the metropolitan Washington, D.C. market area[106] - Tenants contributing 51.2% of annualized rental income were investment grade rated, with an additional 8.2% from subsidiaries of investment grade rated parents[107] - Tenants representing 1% or more of total annualized rental income include the U.S. Government, contributing $75,190, which is 16.6% of total annualized rental income[108] Financial Performance - Rental income for the three months ended September 30, 2024, was $109,781, a decrease of 2.8% compared to $112,939 in the same period of 2023[114] - Net operating income for the three months ended September 30, 2024, was $65,167, down 7.6% from $70,522 in the prior year[114] - Total operating expenses increased by 5.2% to $44,614 for the three months ended September 30, 2024, compared to $42,417 in 2023[114] - The net loss for the three months ended September 30, 2024, was $58,414, representing a 198.1% increase from a net loss of $19,593 in the same period of 2023[115] - Rental income for the nine months ended September 30, 2024, was $329,763, a decrease of 3.2% from $340,686 in the same period of 2023[130] - Total operating expenses for the nine months ended September 30, 2024, were $127,833, an increase of 3.5% compared to $123,483 in 2023[130] - The company reported a net operating income of $201,930 for the nine months ended September 30, 2024, down 7.0% from $217,203 in the prior year[130] - The company achieved a net gain of $8,456 on the sale of real estate in the 2024 period, compared to a gain of $244 in the same period of 2023[125] - Net income for the 2024 period was $12,573, a significant increase from a net loss of $32,281 in the 2023 period, representing a 138.9% improvement[131] - Total other expenses increased by 65.7% to $337,190 in the 2024 period compared to $203,523 in the 2023 period[131] Debt and Liquidity - The company had $146,448,000 in cash and $456,700,000 in 2025 Notes due on February 1, 2025, indicating significant upcoming debt obligations[86] - The company is negotiating with holders of the 2025 Notes regarding a potential note exchange due to substantial doubt about its ability to continue as a going concern[87] - As of September 30, 2024, total debt obligations included $200,000 in revolving credit, $100,000 in secured term loans, $1,855,910 in senior notes, and $177,320 in mortgage notes[170] - The company issued $300,000 of 2029 Notes in February 2024, with net proceeds of $270,712, to refinance existing debt and improve liquidity[158] - As of September 30, 2024, the company had $200,000 outstanding under its revolving credit facility and $100,000 under its term loan, with a total available liquidity of $146,448[164] Capital Expenditures and Investments - Total capital expenditures for the three months ended September 30, 2024, were $35,237,000, compared to $52,519,000 in 2023[99] - Estimated unspent leasing-related obligations amounted to $100,646,000, with $66,949,000 expected to be spent over the next 12 months[100] - The company sold seven properties containing approximately 998,000 rentable square feet for a sales price of $84,810 during the nine months ended September 30, 2024[109] - The company has entered into agreements to sell 17 properties containing approximately 1,609,000 rentable square feet for an aggregate sales price of $119,152[110] Interest Expense and Rate Sensitivity - Interest expense rose by 44.4% to $116,405 in the 2024 period from $80,591 in the 2023 period[131] - A one percentage point increase in interest rates would raise annual interest costs by approximately $20,333 based on current fixed rate debt[180] - A one percentage point increase in interest rates would increase annual floating rate interest expense from $25,200 to $28,200 if $300,000 was outstanding[187] - If fully drawn on the revolving credit facility and term loan, a one percentage point increase in interest rates would increase total interest expense from $35,700 to $39,950, affecting annual earnings by $0.09 per share[188] - The company is vulnerable to changes in U.S. dollar-based short-term rates, specifically SOFR, which affects operating results[186] Operational Cash Flow - Cash provided by operating activities decreased to $41,442 in 2024 from $109,133 in 2023, primarily due to higher interest expenses and reduced net operating income (NOI)[155] - Funds from Operations (FFO) for the nine months ended September 30, 2024, was $328,792, up from $125,329 in 2023, reflecting a strong recovery in operational cash flow[151] - Normalized FFO per common share for the three months ended September 30, 2024, was $0.43, down from $1.02 in 2023, showing a decrease in profitability on a per-share basis[151] Impairment and Losses - The company recorded a loss on impairment of real estate amounting to $41,847 in the 2024 period[122] - The company recorded a loss on impairment of real estate amounting to $173,579 in the 2024 period[138] - Rental income for comparable properties declined by $10,923 due to increased vacancies and lower rents from lease renewals[132] General and Administrative Expenses - General and administrative expenses decreased due to lower management fees and share-based compensation in the 2024 period compared to 2023[124] - General and administrative expenses decreased by 9.0% to $15,861 in the 2024 period compared to $17,430 in the 2023 period[139]