Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Q1 2023 Earnings Presentation
33 slides from Office Properties Income Trust's earnings presentation, Apr 26, 2023
Slide 1: First Quarter 2023 Financial Results and Supplemental Information
Tampa, FL Exhibit 99.2 Office Properties Income Trust First Quarter 2023 Financial Results and Supplemental Information April 26, 2023
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS Office Properties Income Trust Announces First Quarter 2023 Financial Results................................................................................. 4 First Quarter 2023 Highlights .........................................................................
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS Q1 2023 3
Slide 4: Office Properties Income Trust Announces First Quarter 2023 Financial Results
OFFICE PROPERTIES INCOME TRUST ANNOUNCES FIRST QUARTER 2023 FINANCIAL RESULTS “We ended the quarter with positive operating fundamentals Newton, MA (April 26, 2023). Office Properties Income Trust (Nasdaq: OPI) today announced its and recognition as a 2023 Energy Star Partner of Year for the financi
Slide 5: First Quarter 2023 Highlights
First Quarter 2023 Highlights Financial • Net loss of $0.4 million, or $0.01 per share. Results • Normalized FFO of $52.7 million, or $1.09 per share. Portfolio • Leased 203,000 sq. ft. with a 6.8 year weighted average lease term. Update • Increased consolidated occupancy to 90.5%, a 170 basis point
Slide 6: First Quarter 2023 Results
First Quarter 2023 Results (dollars in thousands, except per share data) Three Months Ended March 31, Financial Results 2023 2022 Net loss $ (446) $ (13,407) Sterling, VA Net loss per share $ (0.01) $ (0.28) Normalized FFO $ 52,746 $ 62,722 Normalized FFO per share $ 1.09 $ 1.30 Same Property Cash B
Slide 7: Financials
Financials RETURN TO TABLE OF CONTENTS Q1 2023 7
Slide 8: Key Financial Data
Key Financial Data (dollars in thousands, except per share data) As of and for the Three Months Ended As of 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 3/31/2023 Selected Balance Sheet Data: Capitalization: Total gross assets $ 4,591,512 $ 4,541,435 $ 4,507,422 $ 4,578,277 $ 4,703,791 Total c
Slide 9: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets March 31, December 31, (dollars in thousands, except per share data) 2023 2022 ASSETS Real estate properties: Land $ 817,882 $ 821,238 Buildings and improvements 3,176,756 3,114,836 Rockville, MD Total real estate properties, gross 3,994,638 3,936,074 Accumulate
Slide 10: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended March 31, 2023 2022 Rental income $ 132,422 $ 147,354 Expenses: Real estate taxes 15,333 16,645 Utility expenses 7,260 6,865 Other operating expenses 26,057 27,363 Depreciation and amo
Slide 11: Debt Summary
Debt Summary As of March 31, 2023 (dollars in thousands) Coupon Interest Principal Due at Years to Secured vs. Unsecured Debt Rate (1) Rate (2) Balance Maturity Date Maturity Maturity Secured Unsecured Floating Rate Debt: 2.0% $750,000 unsecured revolving credit facility (3) (4) 6.000% 6.000% $ 245,
Slide 12: Debt Maturity Schedule
Debt Maturity Schedule As of March 31, 2023 (dollars in thousands) Unsecured Floating Unsecured Fixed Secured Fixed Year Rate Debt Rate Debt Rate Debt Total Debt % of Total Debt (5) 2023 $ 245,000 $ — $ 50,000 $ 295,000 11.7% 2024 — 350,000 — 350,000 14.0% (1) Reflects the interest rate stated in, o
Slide 13: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Leverage Ratios, Coverage Ratios and Public Debt Covenants As of and for the Three Months Ended Irving, TX 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Leverage Ratios: Net debt / total gross assets 54.1% 53.8% 53.4% 54.4% 53.4% Net debt / gross book value of real estate assets 48.2% 48.0% 47.
Slide 14: Capital Expenditures Summary and Significant Redevelopment Information
Capital Expenditures Summary and Significant Redevelopment Information (dollars and sq. ft. in thousands, except per sq. ft. data) Parsippany, NJ Capital Expenditures Summary For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Lease related costs $ 13,041 $ 24,776 $ 17,297
Slide 15: Property Acquisitions and Dispositions Information Since January 1, 2023
Property Acquisitions and Dispositions Information Since January 1, 2023 (dollars and sq. ft. in thousands) Folsom, CA Acquisitions: OPI has not acquired any properties since January 1, 2023. Dispositions: Number of Gross Sales Price Date Sold Location Properties Sq. Ft. Gross Sales Price Per Sq. Ft
Slide 16: Investments in Unconsolidated Joint Ventures
Investments in Unconsolidated Joint Ventures As of March 31, 2023 (dollars and sq. ft. in thousands) Unconsolidated Joint Ventures: OPI Number of Weighted Average Joint Venture Ownership OPI Investment Properties Location Sq. Ft. Occupancy Remaining Lease Term (1) Prosperity Metro Plaza 51% $ 19,001
Slide 17: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS Q1 2023 17
Slide 18: Summary Same Property Results
Summary Same Property Results (dollars and sq. ft. in thousands) Plantation, FL For the Three Months Ended 3/31/2023 3/31/2022 Properties (end of period) 151 151 Rentable sq. ft. 19,864 19,835 Percent leased 93.5% 94.4% Rental income $ 132,437 $ 132,265 Same Property NOI $ 84,447 $ 87,151 Same Prope
Slide 19: Occupancy and Leasing Summary
Occupancy and Leasing Summary (dollars and sq. ft. in thousands, except per sq. ft. data) As of and for the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Properties (end of period) (1) 157 160 162 172 174 Rentable sq. ft. (1) 20,895 20,969 21,211 22,491 22,941 Percentage leas
Slide 20: Tenant Diversity and Credit Characteristics
Tenant Diversity and Credit Characteristics As of March 31, 2023 Percentage of Total Annualized Rental Income Tenant Industry Tenant Credit Characteristics Energy Services: 1.2% Hospitality: 2.2% Other: 1.6% San Jose, CA Food: 2.7% Total Life Sciences and Government: 34.8% Medical: 3.3% US Governmen
Slide 21: Tenants Representing 1% or More of Total Annualized Rental Income
Tenants Representing 1% or More of Total Annualized Rental Income As of March 31, 2023 (dollars and sq. ft. in thousands) Atlanta, GA % of Total % of Leased Annualized Annualized Tenant Credit Rating Sq. Ft. Sq. Ft. Rental Income Rental Income 1 U.S. Government Investment Grade 3,816 20.2% $ 106,239
Slide 22: Lease Expiration Schedule
Lease Expiration Schedule As of March 31, 2023 (dollars and sq. ft. in thousands) Cumulative Cumulative % of Total % of Total % of Total % of Total Number of Leased Square Leased Leased Annualized Annualized Annualized Leases Feet Square Feet Square Feet Rental Income Rental Income Rental Income Yea
Slide 23: Appendix
Appendix RETURN TO TABLE OF CONTENTS Q1 2023 23
Slide 24: Company Profile and Research Coverage
Company Profile and Research Coverage The Company: Equity Research Coverage OPI is included in 158 market indices and comprises more than 1% of the following indices as of March 31, 2023: BI North America Office REIT Valuation Peers (BROFFRTV), Bloomberg Real Estate Investment Trust Mid Cap Index (B
Slide 25: Governance Information
Governance Information Board of Trustees Donna D. Fraiche Barbara D. Gilmore John L. Harrington Independent Trustee Independent Trustee Independent Trustee William A. Lamkin Elena B. Poptodorova Jeffrey P. Somers Independent Trustee Lead Independent Trustee Independent Trustee Mark A. Talley Jennife
Slide 26: Non-GAAP Financial Measures and Certain Definitions
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 (SEC), including NOI, Cash Basis NOI, Same Property NOI, Same Property Cash Basis NO
Slide 27: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) Adjusted total assets and total unencumbered assets include the original cost of real estate assets calculated in accordance with GAAP before impairment writedowns, if any, and exclude depreciation and amortization, accounts receivable
Slide 28: Calculation and Reconciliation of NOI and Cash Basis NOI
Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Calculation of NOI and Cash Basis NOI: Rental income $ 132,422 $ 127,922 $ 137,683 $ 141,316 $ 147,354 Property operating expenses (48,650) (4
Slide 29: Reconciliation and Calculation of Same Property NOI and Cash Basis NOI
Reconciliation and Calculation of Same Property NOI and Same Property Cash Basis NOI (dollars in thousands) For the Three Months Ended 3/31/2023 3/31/2022 Reconciliation of NOI to Same Property NOI: Rental income $ 132,422 $ 147,354 Property operating expenses (48,650) (50,873) NOI 83,772 96,481 Les
Slide 30: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Net income (loss) $ (446) $ 6,390 $ 16,964 $ (16,056) $ (13,407) Add (less): Interest expense 25,231 24,557 24,969 26,515 27,439 Income tax expen
Slide 31: Calculation of FFO, Normalized FFO and CAD
Calculation of FFO, Normalized FFO and CAD (amounts in thousands, except per share data) For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Net income (loss) $ (446) $ 6,390 $ 16,964 $ (16,056) $ (13,407) Add (less): Depreciation and amortization: Consolidated properties 5
Slide 32: Warning Concerning Forward-Looking Statements
Warning Concerning Forward-Looking Statements 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”,
Slide 33: Warning Concerning Forward-Looking Statements (Continued)
Warning Concerning Forward-Looking Statements (Continued) Important Additional Information About the Merger In connection with the Merger, OPI intends to file a registration statement on Form S-4 with the SEC, which will include a preliminary prospectus and related materials to register the common s
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