Office Properties Income Trust · OTC:OPITQ

Office Properties Income Trust — Q2 2025 Earnings Presentation

38 slides from Office Properties Income Trust's earnings presentation, Jul 30, 2025

  1. Slide 1: Financial Results and Supplemental Information Second Quarter 2025

    Financial Results and Supplemental Information SECOND QUARTER 2025 July 30, 2025 Exhibit 99.2

  2. Slide 2: Table of Contents

    2Q2 2025 Table of Contents QUARTERLY RESULTS Office Properties Income Trust Announces Second Quarter 2025 Financial Results ...................................................... 4 Second Quarter 2025 Summary ...........................................................................................

  3. Slide 3: Q2 2025 Quarterly Results

    3RETURN TO TABLE OF CONTENTS Q2 2025 Quarterly Results

  4. Slide 4: OPI Announces Second Quarter 2025 Financial Results

    4RETURN TO TABLE OF CONTENTS Q2 2025 OPI ANNOUNCES SECOND QUARTER 2025 FINANCIAL RESULTS Newton, MA (July 30, 2025). Office Properties Income Trust (Nasdaq: OPI) today announced its financial results for the quarter ended June 30, 2025. Distribution Suspension On July 10, 2025, OPI announced the sus

  5. Slide 5: Second Quarter 2025 Summary

    Q2 2025 5RETURN TO TABLE OF CONTENTS Second Quarter 2025 Summary Portfolio Update • Executed 416,000 square feet of total leasing at a weighted average lease term of 5.4 years, with lease renewals accounting for two-thirds of leased square footage. • Ended the quarter with same property portfolio oc

  6. Slide 6: Q2 2025 Financials

    6RETURN TO TABLE OF CONTENTS Q2 2025 Financials

  7. Slide 7: Key Financial Data

    Q2 2025 7RETURN TO TABLE OF CONTENTS As of and for the Three Months Ended As of 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 Selected Income Statement Data: Capitalization: Rental income $ 114,499 $ 113,615 $ 118,238 $ 120,620 $ 123,686 Total common shares (at end of period) 73,976,1

  8. Slide 8: Condensed Consolidated Statements of Income (Loss)

    Q2 2025 8RETURN TO TABLE OF CONTENTS Chicago, IL Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Rental income $ 114,499 $ 123,686 $ 228,114 $ 263,121 Expenses: Real estate taxes 12,111 14,727 25,569 30,436 Utility expenses 5,683 5,762 13,250 13,913 Other operating expenses

  9. Slide 9: Condensed Consolidated Balance Sheets

    Q2 2025 9RETURN TO TABLE OF CONTENTS June 30, December 31, 2025 2024 ASSETS Real estate properties: Land $ 706,623 $ 711,039 Buildings and improvements 2,953,983 2,946,520 Total real estate properties, gross 3,660,606 3,657,559 Accumulated depreciation (670,583) (618,650) Total real estate propertie

  10. Slide 10: Debt Summary

    Q2 2025 10RETURN TO TABLE OF CONTENTS Coupon Rate (7) Interest Rate (8) Principal Balance Maturity Date Due at Maturity Years to Maturity Secured Floating Rate Debt: $325,000 secured revolving credit facility (2) 7.890% 7.890% $ 325,000 1/29/2027 $ 325,000 1.6 $100,000 secured term loan (2) 7.890% 7

  11. Slide 11: Debt Maturity Schedule

    Q2 2025 11RETURN TO TABLE OF CONTENTS $133,929 $78,306 $278,841 $425,000 $13,000 $145,531 $267,992 $123,487 $910,278 $53,554 Unsecured Fixed Rate Debt Secured Floating Rate Debt Secured Fixed Rate Debt 2025 2026 2027 2028 2029 2030 and thereafter 0 200,000 400,000 600,000 800,000 1,000,000 Debt Matu

  12. Slide 12: Leverage Ratios, Coverage Ratios and Public Debt Covenants

    Q2 2025 12RETURN TO TABLE OF CONTENTS Leverage Ratios, Coverage Ratios and Public Debt Covenants As of and for the Three Months Ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Leverage Ratios: Net debt / total gross assets 55.6% 56.3% 53.3% 53.2% 52.3% Net debt / gross book value of real es

  13. Slide 13: Capital Expenditures Summary

    Q2 2025 13RETURN TO TABLE OF CONTENTS For the Three Months Ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Lease related costs $ 8,830 $ 10,727 $ 27,107 $ 29,148 $ 25,965 Building improvements 4,327 3,011 6,229 5,225 4,085 Recurring capital expenditures 13,157 13,738 33,336 34,373 30,050 De

  14. Slide 14: Property Dispositions

    Q2 2025 14RETURN TO TABLE OF CONTENTS Dispositions: Date Sold Location Number of Properties Sq. Ft. Gross Sales Price Gross Sales Price Per Sq. Ft. 2/7/2025 Parsippany, NJ 1 100 $ 5,750 $ 57.50 2/26/2025 Santa Clara, CA 2 149 21,150 141.95 7/8/2025 Detroit, MI 1 56 2,150 38.39 Total 4 305 $ 29,050 $

  15. Slide 15: Investment in Unconsolidated Joint Venture

    Q2 2025 15RETURN TO TABLE OF CONTENTS Unconsolidated Joint Venture: Joint Venture OPI Ownership OPI Investment Number of Properties Location Sq. Ft. Occupancy Weighted Average Remaining Lease Term (1) Prosperity Metro Plaza 51% $ 16,990 2 Fairfax, VA 346 77.6% 3.8 years (1) Lease term is weighted ba

  16. Slide 16: Q2 2025 Portfolio Information

    16RETURN TO TABLE OF CONTENTS Q2 2025 Portfolio Information

  17. Slide 17: Summary Same Property Results

    Q2 2025 17RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Six Months Ended 6/30/2025 6/30/2024 6/30/2025 6/30/2024 Properties (end of period) 117 117 117 117 Rentable sq. ft. 16,351 16,344 16,351 16,344 Percent leased 85.2% 91.4% 85.2% 91.4% Rental income $ 103,171 $ 105,580 $ 207,071

  18. Slide 18: Occupancy and Leasing Summary

    Q2 2025 18RETURN TO TABLE OF CONTENTS As of and for the Three Months Ended As of and for the Six Months Ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 Properties (end of period) 125 125 128 145 151 125 Rentable sq. ft. (1) 17,270 17,274 17,763 19,543 20,293 17,270 Percentage leas

  19. Slide 19: Tenant Diversity and Credit Characteristics

    Q2 2025 19RETURN TO TABLE OF CONTENTS Investment Grade 58.7%Not Rated 34.5% Non-Investment Grade 6.8% Percentage of Total Annualized Rental Income Tenant Credit Characteristics ( 4 ) (3) Tenant Industry Tenant Diversity and Credit Characteristics As of June 30, 2025 U.S. Government: 17.1% Real Estat

  20. Slide 20: Tenant Credit Rating and Top Tenants

    Q2 2025 20RETURN TO TABLE OF CONTENTS Tenant Credit Rating Sq. Ft. % of Leased Sq. Ft. Annualized Rental Income % of Total Annualized Rental Income 1 U.S. Government Investment Grade 2,415 17.2% $ 68,172 17.1% 2 Alphabet Inc. (Google) Investment Grade 386 2.8% 22,977 5.8% 3 IG Investments Holdings L

  21. Slide 21: Lease Expiration Schedule

    Q2 2025 21RETURN TO TABLE OF CONTENTS Charlotte, NC Year (1) Number of Leases Expiring Leased Square Feet Expiring % of Total Leased Square Feet Expiring Cumulative % of Total Leased Square Feet Expiring Annualized Rental Income Expiring % of Total Annualized Rental Income Expiring Cumulative % of T

  22. Slide 22: Q2 2025 Appendix

    22RETURN TO TABLE OF CONTENTS Q2 2025 Appendix

  23. Slide 23: Management and Company Profile

    23RETURN TO TABLE OF CONTENTS Q2 2025 Management: OPI is managed by The RMR Group (Nasdaq: RMR). RMR is an alternative asset management company that is focused on commercial real estate and related businesses. RMR primarily provides management services to publicly traded real estate companies, priva

  24. Slide 24: Calculation of NOI and Cash Basis NOI

    Q2 2025 24RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Six Months Ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Calculation of NOI and Cash Basis NOI: Rental income $ 114,499 $ 113,615 $ 118,238 $ 120,620 $ 123,686 $ 228,114 $ 263,121 Property operati

  25. Slide 25: Reconciliation of NOI to Same Property NOI

    Q2 2025 25RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Six Months Ended 6/30/2025 6/30/2024 6/30/2025 6/30/2024 Reconciliation of NOI to Same Property NOI: Rental income $ 114,499 $ 123,686 $ 228,114 $ 263,121 Property operating expenses (49,031) (47,640) (101,261) (98,827) NOI 65,

  26. Slide 26: Property Detail (by Collateral Pool)

    Q2 2025 26RETURN TO TABLE OF CONTENTS Property Detail (by Collateral Pool) As of June 30, 2025 (dollars and sq. ft. in thousands) Number of Properties Sq. Ft. Sq. Ft. Expiring Through December 31st, 2025 Occupancy Weighted Average Remaining Lease Term Annualized Rental Income Trailing Twelve Months

  27. Slide 27: Property Detail (by Collateral Pool)

    Q2 2025 27RETURN TO TABLE OF CONTENTS Property Detail (by Collateral Pool) As of June 30, 2025 (dollars and sq. ft. in thousands) Number of Properties Sq. Ft. Sq. Ft. Expiring Through December 31st, 2025 Occupancy Weighted Average Remaining Lease Term Annualized Rental Income Trailing Twelve Months

  28. Slide 28: Property Detail (by Collateral Pool)

    Q2 2025 28RETURN TO TABLE OF CONTENTS Property Detail (by Collateral Pool) As of June 30, 2025 (dollars and sq. ft. in thousands) Number of Properties Sq. Ft. Sq. Ft. Expiring Through December 31st, 2025 Occupancy Weighted Average Remaining Lease Term Annualized Rental Income Trailing Twelve Months

  29. Slide 29: Property Detail (by Collateral Pool)

    Q2 2025 29RETURN TO TABLE OF CONTENTS Property Detail (by Collateral Pool) As of June 30, 2025 (dollars and sq. ft. in thousands) Number of Properties Sq. Ft. Sq. Ft. Expiring Through December 31st, 2025 Occupancy Weighted Average Remaining Lease Term Annualized Rental Income Trailing Twelve Months

  30. Slide 30: Property Detail (by Collateral Pool)

    Q2 2025 30RETURN TO TABLE OF CONTENTS Property Detail (by Collateral Pool) As of June 30, 2025 (dollars and sq. ft. in thousands) Number of Properties Sq. Ft. Sq. Ft. Expiring Through December 31st, 2025 Occupancy Weighted Average Remaining Lease Term Annualized Rental Income Trailing Twelve Months

  31. Slide 31: Property Detail (by Collateral Pool)

    Q2 2025 31RETURN TO TABLE OF CONTENTS Property Detail (by Collateral Pool) As of June 30, 2025 (dollars and sq. ft. in thousands) Number of Properties Sq. Ft. Sq. Ft. Expiring Through December 31st, 2025 Occupancy Weighted Average Remaining Lease Term Annualized Rental Income Trailing Twelve Months

  32. Slide 32: Property Detail (by Collateral Pool)

    Q2 2025 32RETURN TO TABLE OF CONTENTS Property Detail (by Collateral Pool) As of June 30, 2025 (dollars and sq. ft. in thousands) Number of Properties Sq. Ft. Sq. Ft. Expiring Through December 31st, 2025 Occupancy Weighted Average Remaining Lease Term Annualized Rental Income Trailing Twelve Months

  33. Slide 33: Property Detail (by Collateral Pool)

    Q2 2025 33RETURN TO TABLE OF CONTENTS Property Detail (by Collateral Pool) As of June 30, 2025 (dollars and sq. ft. in thousands) Number of Properties Sq. Ft. Sq. Ft. Expiring Through December 31st, 2025 Occupancy Weighted Average Remaining Lease Term Annualized Rental Income Trailing Twelve Months

  34. Slide 34: EBITDA, EBITDAre and Adjusted EBITDAre Reconciliation

    Q2 2025 34RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Six Months Ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Net (loss) income $ (41,186) $ (45,867) $ (148,680) $ (58,414) $ 76,171 $ (87,053) $ 70,987 Add (less): Interest expense 52,507 53,378 47,3

  35. Slide 35: FFO, Normalized FFO and CAD Reconciliation

    Q2 2025 35RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Six Months Ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Net (loss) income $ (41,186) $ (45,867) $ (148,680) $ (58,414) $ 76,171 $ (87,053) $ 70,987 Add (less): Depreciation and amortization: Cons

  36. Slide 36: Non-GAAP Financial Measures

    36RETURN TO TABLE OF CONTENTS Q2 2025 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 Property NOI, Same Property Cash Basis NOI, EBITD

  37. Slide 37: Definitions and Notes

    37RETURN TO TABLE OF CONTENTS Q2 2025 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 and intangible assets, as

  38. Slide 38: Warning Concerning Forward-Looking Statements

    38RETURN TO TABLE OF CONTENTS Q2 2025 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

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