Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Investor Presentation (November 2023)
25 slides from Office Properties Income Trust's investor presentation, Nov 13, 2023
Slide 1: Office Properties Income Trust Investor Presentation November 2023
1 OFFICE PROPERTIES INCOME TRUST INVESTOR PRESENTATION NOVEMBER 2023 Chicago, IL
Slide 2: Forward-looking statements
2 OFFICE PROPERTIES INCOME TRUST This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws that are subject to risks and uncertainties. These statements may include words such as “believe”, “expect”, “an
Slide 3: OPI at a Glance
3 OFFICE PROPERTIES INCOME TRUST a. Total gross assets. b. Based on annualized rental income. See Appendix herein for our definition of investment grade tenants. OPI AT A GLANCE 20.7 MILLION SQUARE FEET Energy Star® Partner of the Year $4.7 Billion INVESTMENT PORTFOLIO(1) 89.9% OCCUPANCY 154 PROPERT
Slide 4: Recent Company Highlights
4 OFFICE PROPERTIES INCOME TRUST RECENT COMPANY HIGHLIGHTS Q3 2023 Year to Date • Executed more than 1,500,000 square feet of leasing, or 7.3% of total square footage, at a WALT of 8.7 years. • Ended the third quarter at 89.9% portfolio occupancy and 93.3% same property occupancy. • 20 Mass Ave. hot
Slide 5: Secure and Stable Cash Flow Supported by High Credit Tenant Base
5 OFFICE PROPERTIES INCOME TRUST Pho enix SECURE AND STABLE CASH FLOW SUPPORTED BY HIGH CREDIT TENANT BASE AND GEOGRAPHICALLY DIVERSE PORTFOLIO Top MSAs (1) Includes the District of Columbia, Northern Virginia and Maryland. (2) Represents percentage of total annualized rental income. 64% 30% 6% Inve
Slide 6: Proactive Asset Management and Leasing
6 OFFICE PROPERTIES INCOME TRUST -60% -40% -20% 0% 20% 40% 60% 80% 0 500 1000 1500 2000 2500 3000 3500 2019 2020 2021 2022 2023 YTD Renewals New Leasing 2.2M SF New and renewal leasing Leasing Activity SF in 000s PROACTIVE ASSET MANAGEMENT AND LEASING Staggered Lease Expirations % Total Annualized R
Slide 7: Strategic Capital Recycling
7 OFFICE PROPERTIES INCOME TRUST STRATEGIC CAPITAL RECYCLING Since 2019, OPI has sold approximately $1.5 billion of assets and redeployed proceeds into more attractive markets. Property Acquisitions & Dispositions ($ millions) Potential Benefits Reduce the average age of our portfolio. Reshape geogr
Slide 8: Value Creation Through Select Redevelopment
8 OFFICE PROPERTIES INCOME TRUST VALUE CREATION THROUGH SELECT REDEVELOPMENT “20 Mass” 20 Massachusetts Avenue, Washington, D.C. “Unison” 351, 401, 501 Elliott Ave, Seattle, WA ~$227 Million Total Project Cost 8% - 10% Stabilized Returns 55% Leased 427,000 Square Feet Mixed Use Use Q3 2023 Substanti
Slide 9: Focused on Managing Debt Maturities
9 OFFICE PROPERTIES INCOME TRUST FOCUSED ON MANAGING DEBT MATURITIES $550M Available Revolving Credit Facility (1) $24M Cash on Hand 4.4% Weighted Average Interest Rate on Debt 2.7x Adjusted EBITDAre to Interest Expense 4.4% Secured Debt to Total Assets 8.1x Net Debt to Rolling Four Quarter Adjusted
Slide 10: Commitment to Sustainability
10 OFFICE PROPERTIES INCOME TRUST For more information, please read The RMR Group’s 2022 Sustainability Report here. COMMITMENT TO SUSTAINABILITY CONTINUED ADVANCEMENT OF INITIATIVES • Encouraging consideration of ESG criteria in the broader context of investment and property management through inte
Slide 11: Appendix
11 OFFICE PROPERTIES INCOME TRUST Appendix Colorado Springs, CO
Slide 12: OPI Is Managed by The RMR Group
12 OFFICE PROPERTIES INCOME TRUST RMR’s Operations Include: National Multi-Sector Investment Platform OFFICE INDUSTRIAL GOVERNMENT MEDICAL OFFICE LIFE SCIENCE SENIOR LIVING HOTELS RETAIL RMR Managed Companies Over 2,000 Properties More than $5 Billion in Annual Revenues Approximately $36 Billion in
Slide 13: A Winning Tradition
13 OFFICE PROPERTIES INCOME TRUST A WINNING TRADITION EPA’S 2023 ENERGY STAR® Partner of the Year. 77 properties with EPA ENERGY STAR certifications 55 properties with BOMA designations. Ranked #2 for portfolio with most designations 58 properties with LEED designations SUSTAINABILITY Ranked Boston
Slide 14: Relationship with RMR Provides Scale and Efficiency
14 OFFICE PROPERTIES INCOME TRUST (1) Source: S&P Global Market Intelligence. Data is for the most recently reported twelve months as of October 31, 2023. RELATIONSHIP WITH RMR PROVIDES SCALE AND EFFICIENCY Key Benefits • RMR provides all the employees; OPI has no employees. • RMR’s acquisitions tea
Slide 15: RMR Fee Structure
15 OFFICE PROPERTIES INCOME TRUST RMR base management fee tied to OPI share price performance. • Consists of an annual fee equal to generally 50 bps multiplied by the lower of: (1) OPI’s historical cost of real estate, or (2) OPI’s total market capitalization. • There is no incentive for RMR to comp
Slide 16: Financials
16 OFFICE PROPERTIES INCOME TRUST San Jose, CA Financials
Slide 17: Key Financial Data
17 OFFICE PROPERTIES INCOME TRUST KEY FINANCIAL DATA (1) Reflects the annualized dividends paid per common share during the period as a percentage of rolling four quarter CAD per common share. As of and for the Three Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Selected Income Sta
Slide 18: Debt Summary
18 OFFICE PROPERTIES INCOME TRUST Coupon Rate (1) Interest Rate (2) Principal Balance Maturity Date Due at Maturity Years to Maturity Unsecured Floating Rate Debt: $750,000 unsecured revolving credit facility (3) 6.850% 6.850% $ 200,000 1/31/2024 $ 200,000 0.3 Unsecured Fixed Rate Debt: Senior unsec
Slide 19: Calculation and Reconciliation of NOI and Cash Basis NOI
19 OFFICE PROPERTIES INCOME TRUST CALCULATION AND RECONCILIATION OF NOI AND CASH BASIS NOI (1) OPI recorded a liability for the amount by which the estimated fair value for accounting purposes exceeded the price OPI paid for its former investment in RMR Inc. common stock in June 2015. A portion of t
Slide 20: Reconciliation of NOI to Same Property NOI
20 OFFICE PROPERTIES INCOME TRUST For the Three Months Ended For the Nine Months Ended 9/30/2023 9/30/2022 9/30/2023 9/30/2022 Reconciliation of NOI to Same Property NOI: Rental income $ 133,361 $ 137,683 $ 399,780 $ 426,353 Property operating expenses (49,663) (52,137) (146,590) (151,910) NOI 83,69
Slide 21: EBITDA and Adjusted EBITDAre Reconciliation
21 OFFICE PROPERTIES INCOME TRUST For the Three Months Ended For the Nine Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 9/30/2022 Net (loss) income $ (19,593) $ (12,242) $ (446) $ 6,390 $ 16,964 $ (32,281) $ (12,499) Add (less): Interest expense 28,835 26,525 25,231 24,55
Slide 22: FFO, Normalized FFO and CAD Reconciliation
22 OFFICE PROPERTIES INCOME TRUST For the Three Months Ended For the Nine Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 9/30/2022 Net (loss) income $ (19,593) $ (12,242) $ (446) $ 6,390 $ 16,964 $ (32,281) $ (12,499) Add (less): Depreciation and amortization: Consolidated
Slide 23: Non-GAAP Financial Measures and Certain Definitions
23 OFFICE PROPERTIES INCOME TRUST NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS Non-GAAP Financial Measures OPI presents certain “non-GAAP financial measures” within the meaning of the applicable rules of the Securities and Exchange Commission, or the SEC, including NOI, Cash Basis NOI, Same P
Slide 24: Non-GAAP Financial Measures and Certain Definitions
24 OFFICE PROPERTIES INCOME TRUST NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS Annualized dividend yield is the annualized dividend per common share paid during the period divided by the closing price of OPI's common shares at the end of the period. Annualized rental income is calculated usin
Slide 25: Contact
25 OFFICE PROPERTIES INCOME TRUST INVESTOR PRESENTATION NOVEMBER 2023 Chicago, IL Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458 OPIREIT.COM
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