Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Q3 2023 Earnings Presentation
32 slides from Office Properties Income Trust's earnings presentation, Oct 30, 2023
Slide 1: Third Quarter 2023 Financial Results and Supplemental Information
Chicago, IL Exhibit 99.2 Office Properties Income Trust Third Quarter 2023 Financial Results and Supplemental Information October 30, 2023
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS Office Properties Income Trust Announces Third Quarter 2023 Financial Results ............................................................................... 4 Third Quarter 2023 Highlights ..........................................................................
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS Q3 2023 3
Slide 4: Office Properties Income Trust Announces Third Quarter 2023 Financial Results
OFFICE PROPERTIES INCOME TRUST ANNOUNCES THIRD QUARTER 2023 FINANCIAL RESULTS “During the third quarter, OPI continued to advance its Newton, MA (October 30, 2023). Office Properties Income Trust (Nasdaq: OPI) today announced its financial results for the quarter ended September 30, 2023. business s
Slide 5: Third Quarter 2023 Highlights
Third Quarter 2023 Highlights Financial • Net loss of $19.6 million, or $0.41 per common share. Results • Normalized FFO of $49.4 million, or $1.02 per common share. Portfolio • Leased 586,000 sq. ft. with a 7.4 year weighted average lease term. Update • Leased 1,502,000 sq. ft. year-to-date with an
Slide 6: Third Quarter 2023 Results
Third Quarter 2023 Results (dollars in thousands, except per share and per sq. ft. data) Three Months Ended September 30, Washington, D.C. Financial Results 2023 2022 Net (loss) income $ (19,593) $ 16,964 Net (loss) income per common share $ (0.41) $ 0.35 Normalized FFO $ 49,404 $ 53,802 Normalized
Slide 7: Financials
Financials RETURN TO TABLE OF CONTENTS Q3 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 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 Selected Income Statement Data: Capitalization: Rental income $ 133,361 $ 133,997 $ 132,422 $ 127,922 $ 137,683 Total common shares
Slide 9: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Rental income $ 133,361 $ 137,683 $ 399,780 $ 426,353 Expenses: Real estate taxes 14,257 16,414 45,491 49,642 Utility
Slide 10: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets September 30, December 31, (dollars in thousands, except per share data) 2023 2022 ASSETS Real estate properties: Land $ 802,904 $ 821,238 Buildings and improvements 3,260,732 3,114,836 Total real estate properties, gross 4,063,636 3,936,074 Accumulated deprecia
Slide 11: Debt Summary
Debt Summary As of September 30, 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: 6.8% $750,000 unsecured revolving credit facility (3) 6.850% 6.850% $ 200,
Slide 12: Debt Maturity Schedule
Debt Maturity Schedule As of September 30, 2023 (dollars in thousands) Unsecured Floating Unsecured Fixed Secured Fixed Rate Year Rate Debt Rate Debt Debt Total Debt % of Total Debt 2023 $ — $ — $ — $ — —% (4) 2024 200,000 350,000 — 550,000 21.2% 2025 — 650,000 — 650,000 25.1% 2026 — 300,000 — 300,0
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 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Leverage Ratios: Net debt / total gross assets 54.9% 54.7% 54.1% 53.8% 53.4% Net debt / gross book value of real estate assets 49.1% 48.9% 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) Capital Expenditures Summary Carlsbad, CA For the Three Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Lease related costs $ 15,677 $ 28,252 $ 13,041 $
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, except per sq. ft. data) Acquisitions: OPI has not acquired any properties since January 1, 2023. Rockville, MD Dispositions: Number of Gross Sales Price Date Sold Location Properties Sq. Ft.
Slide 16: Investments in Unconsolidated Joint Ventures
Investments in Unconsolidated Joint Ventures As of September 30, 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% $ 18
Slide 17: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS Q3 2023 17
Slide 18: Summary Same Property Results
Summary Same Property Results (dollars and sq. ft. in thousands) Sacramento, CA For the Three Months Ended For the Nine Months Ended 9/30/2023 9/30/2022 9/30/2023 9/30/2022 Properties (end of period) 147 147 147 147 Rentable sq. ft. 19,526 19,551 19,526 19,551 Percent leased 93.3% 94.7% 93.3% 94.7%
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 Nine As of and for the Three Months Ended Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 Properties (end of period) (1) 154 155 157 160 162 154 Rentable sq. ft. (1)
Slide 20: Tenant Diversity and Credit Characteristics
Tenant Diversity and Credit Characteristics As of September 30, 2023 Percentage of Total Annualized Rental Income Tenant Industry Tenant Credit Characteristics Energy Services: 1.4% Hospitality: 2.2% Other: 1.5% Food: 2.8% Irving, TX Life Sciences and Medical: 3.1% Government US Government:(20.0% Co
Slide 21: Tenants Representing 1% or More of Total Annualized Rental Income
Tenants Representing 1% or More of Total Annualized Rental Income As of September 30, 2023 (dollars and sq. ft. in thousands) % of Total % of Leased Annualized Annualized Tenant Credit Rating Sq. Ft. Sq. Ft. Rental Income Rental Income 1 U.S. Government Investment Grade 3,822 20.5% $ 105,955 20.0% 2
Slide 22: Lease Expiration Schedule
Lease Expiration Schedule As of September 30, 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
Slide 23: Appendix
Appendix RETURN TO TABLE OF CONTENTS Q3 2023 23
Slide 24: Company Profile and Research Coverage
Company Profile and Research Coverage The Company: Equity Research Coverage OPI is included in 153 market indices and comprises more than 1% of the following indices as of September 30, 2023: Bloomberg US Micro Cap Real Estate Price Return Index (BMICR), Invesco S&P SmallCap High Dividend Low Volati
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, or the SEC, including NOI, Cash Basis NOI, Same Property NOI, Same Property Cash Ba
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 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 Calculation of NOI and Cash Basis NOI: Rental income $ 133,361 $ 133,997 $ 132,422 $ 127,922 $ 1
Slide 29: Reconciliation and Calculation of Same Property NOI and Same Property Cash Basis NOI
Reconciliation and Calculation of Same Property NOI and Same Property Cash Basis NOI (dollars in thousands) For the Three Months Ended For the Nine Months Ended Washington, D.C. 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 $ 39
Slide 30: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) 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):
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 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)
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”,
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