Office Properties Income Trust (NASDAQ:OPI) Q1 2024 Earnings Conference Call May 2, 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 Operator Good morning and welcome to Office Properties Income Trust’s First Quarter 2024 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] At this time, ...

| --- | --- | |-----------------------------------------------------------------------------------------------------|-------| | | | | "Despite significant operational headwinds that | | | continue to impact the office sector, during the first | | | quarter OPI completed 488,000 square feet of new | | | and renewal leasing at a 10.2% roll-up in rent and a | | | weighted average lease term of 9.3 years. | | | | | | Additionally, OPI continued to advance its objectives by refinancing its revolving credit facil ...

Office Properties Income Trust (OPI) came out with quarterly funds from operations (FFO) of $0.79 per share, missing the Zacks Consensus Estimate of $0.81 per share. This compares to FFO of $1.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -2.47%. A quarter ago, it was expected that this company would post FFO of $0.98 per share when it actually produced FFO of $0.95, delivering a surprise of -3.06%.Over the last four quarters, ...

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, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-34364 OFFICE PROPERTIES INCOME TRUST (Exact Name of Registrant as Specified in Its Charter) Maryland 26-4273474 (State or Other Jurisdiction of Incorporation ...

OFFICE PROPERTIES INCOME TRUST Office Properties Income Trust First Quarter 2024 Financial Results and Supplemental Information May 1, 2024 Provo, UT Table of Contents | QUARTERLY RESULTS | | | | --- | --- | --- | | Office Properties Income Trust Announces First Quarter 2024 Financial Results | | | | First Quarter 2024 Highlights | 5 | | | FINANCIALS | | | | Key Financial Data ... | 7 | Trading ! | | Condensed Consolidated Statements of Income (Loss) | 8 | Common | | Condensed Consolidated Balance Sheets | ...

Office Properties Income Trust (NASDAQ:OPI) Q4 2023 Earnings Conference Call February 16, 2024 10:00 AM ET Company Participants Kevin Barry - Senior Director of Investor Relations Yael Duffy - President & Chief Executive Officer Brian Donley - Chief Financial Officer & Treasurer Conference Call Participants Bryan Maher - B. Riley Securities Ronald Kamdem - Morgan Stanley Operator Good day, and welcome to the Office Properties Income Trust's Fourth Quarter 2023 Earnings Conference Call. All participants will ...

Table of Contents FORM 10-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-34364 OFFICE PROPERTIES INCOME TRUST (Exact Name of Registrant as Specified in Its Charter) Maryland 26-4273474 (State of Organization) (I.R.S. Employer Identific ...

Office Properties Income Trust (NASDAQ:OPI) Q3 2023 Earnings Conference Call October 31, 2023 10:00 AM ET Company Participants Kevin Barry - Senior Director of Investor Relations Chris Bilotto - President & Chief Executive Officer Brian Donley - Chief Financial Officer & Treasurer Conference Call Participants Bryan Maher - B. Riley Securities Tamim Sarwary - Morgan Stanley Operator Good morning, everyone and welcome to the Office Properties Income Trust Third Quarter 2023 Earnings Conference Call. [Operator ...

(1) Includes capitalized interest and other operating costs of $13,207 since July 1, 2022. (2) Estimated project costs include future, estimated lease related costs associated with achieving stabilized occupancy that will be incurred subsequent to the estimated completion date. (3) Estimated completion date can depend on various factors, including when lease agreements are signed with tenants. Therefore, the actual completion dates may vary. (4) Physical improvements made at this project were substantially ...

Property and Occupancy - As of September 30, 2023, the company owned 154 properties with a total of approximately 20,705,000 rentable square feet, leased to 263 tenants[78]. - The occupancy rate for all properties decreased to 89.9% as of September 30, 2023, down from 90.7% in 2022[83]. - The average effective rental rate per square foot for all properties increased slightly to $29.37 for the three months ended September 30, 2023, compared to $29.19 in 2022[85]. - The U.S. government is the largest tenant, accounting for approximately 20.0% of the company's annualized rental income as of September 30, 2023[78]. - The company derived 21.6% of its annualized rental income from properties located in the metropolitan Washington, D.C. market area as of September 30, 2023[102]. - Tenants contributing 53.6% of annualized rental income were investment grade rated, with an additional 10.4% from subsidiaries of investment grade rated parents[103]. - As of September 30, 2023, the company had leases totaling approximately 2,614,820 rentable square feet scheduled to expire through September 30, 2024, with 1,832,201 square feet expected to expire, excluding re-leased space[97]. - The weighted average remaining lease term is 6.0 years, with 350 leases expiring in total[99]. - In 2023, 5.9% of leases expiring were in 2023, while 13.5% are scheduled for 2024[99]. Financial Performance - Rental income for the three months ended September 30, 2023, was $133,361, a decrease of $4,322 or 3.1% compared to $137,683 in the same period of 2022[110]. - Net operating income for the three months ended September 30, 2023, was $83,698, down $1,848 or 2.2% from $85,546 in the prior year[110]. - Total operating expenses for the three months ended September 30, 2023, were $49,663, a decrease of $2,474 or 4.7% compared to $52,137 in 2022[110]. - The company recorded a net loss of $19,593 for the three months ended September 30, 2023, compared to a net income of $16,964 in the same period of 2022, representing a change of $36,557[110]. - For the nine months ended September 30, 2023, rental income was $399,780, a decrease of $26,573 or 6.2% from $426,353 in the same period of 2022[124]. - Net loss for the nine months ended September 30, 2023, was $32,281, an increase of $19,782 or 158.3% compared to a net loss of $12,499 in 2022[124]. - Net Operating Income (NOI) for the nine months ended September 30, 2023, was $253,190, down from $274,443 in 2022, reflecting a decrease of approximately 7.8%[142]. - Funds From Operations (FFO) for the nine months ended September 30, 2023, was $125,329, compared to $175,146 in 2022, indicating a decline of about 28.5%[144]. - Normalized FFO for the nine months ended September 30, 2023, was $155,863, down from $175,447 in 2022, representing a decrease of approximately 11.2%[144]. Capital Expenditures and Investments - Total capital expenditures for the nine months ended September 30, 2023, amounted to $193.655 million, compared to $172.799 million in 2022[93]. - The company has estimated unspent leasing-related obligations of $137.223 million, with $73.666 million expected to be spent over the next 12 months[96]. - The company sold six properties containing approximately 376,000 rentable square feet for an aggregate sales price of $23,575,000 during the nine months ended September 30, 2023[106]. - As of October 27, 2023, the company has entered into agreements to sell two properties containing approximately 177,000 rentable square feet for an aggregate sales price of $21,299,000[107]. - The company completed the redevelopment of a property in Washington, D.C., with total project costs estimated at $227,000, and the property is currently 55% leased[157]. - The company is redeveloping a three-property campus in Seattle, WA, with estimated costs of $162,000 and completion expected in Q1 2024, currently 28% pre-leased[158]. Debt and Interest Expenses - The company issued six mortgage notes totaling $177,320 with a weighted average interest rate of 7.8% during the nine months ended September 30, 2023[154]. - As of September 30, 2023, the company had total debt maturities of $2,389,320, with $350,000 due in 2024 and $650,000 due in 2025[155]. - The company has a $750,000 revolving credit facility, with $200,000 outstanding as of September 30, 2023, and $550,000 available for borrowing[151]. - Interest expense increased by $3,866 or 15.5% to $28,835 in the three months ended September 30, 2023, compared to $24,969 in 2022[110]. - The annual interest expense for the floating rate debt at September 30, 2023, is $13,800, which would increase to $15,800 with a one percentage point rise in interest rates[178]. - A one percentage point increase in interest rates would increase the annual interest cost of fixed rate debt by approximately $23,893[171]. - A hypothetical one percentage point increase in interest rates would decrease the fair value of fixed rate debt obligations by approximately $68,555[172]. - The company’s fixed rate debt arrangements may allow for early repayments, potentially mitigating refinancing risks[173]. Strategic Decisions and Market Conditions - The company terminated its merger agreement with DHC on September 1, 2023, which may impact future strategic decisions[81]. - The company faces challenges in office space demand due to trends such as increased remote work and tenant consolidations, creating uncertainty in the leasing market[79]. - Inflationary pressures and rising interest rates have raised concerns about potential economic recession, which could adversely affect the company's financial condition and tenant operations[80]. - The company is focused on tenant retention and may incur significant costs to renew leases with current tenants[101]. - The company continues to evaluate its portfolio and may seek to sell additional properties in the future[107]. - The company expects future cash flows to depend on the ability to collect rent, maintain occupancy, control expenses, and successfully sell properties[146]. Risk Factors - The company acknowledges potential risks from competition within the commercial real estate industry, particularly in its property locations[192]. - The company notes the impact of U.S. government actions, such as shutdowns or debt ceiling issues, on rent collection and operational expenses[192]. - The company identifies risks related to compliance with federal, state, and local laws, as well as changes in accounting and tax regulations[192]. - The company is aware of risks from external factors such as terrorism, pandemics, and climate change that could disrupt operations[192]. - There have been no significant changes in critical accounting estimates since December 31, 2022[168]. - There have been no material changes to the risk factors disclosed in the 2022 Annual Report[193].