Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Q3 2024 Earnings Presentation
32 slides from Office Properties Income Trust's earnings presentation, Oct 30, 2024
Slide 1: Third Quarter 2024 Financial Results and Supplemental Information
Columbia, MD Office Properties Income Trust Third Quarter 2024 Financial Results and Supplemental Information October 30, 2024
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS Office Properties Income Trust Announces Third Quarter 2024 Financial Results .......................................................... 4 Third Quarter 2024 Highlights ...............................................................................................
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS Q3 2024 3
Slide 4: Office Properties Income Trust Announces Third Quarter 2024 Financial Results
OFFICE PROPERTIES INCOME TRUST ANNOUNCES THIRD QUARTER 2024 FINANCIAL RESULTS "OPI continues to explore strategies to address its Newton, MA (October 30, 2024). Office Properties Income Trust (Nasdaq: OPI) today announced its financial results for the quarter ended September 30, 2024. $456.7 million
Slide 5: Third Quarter 2024 Highlights
Third Quarter 2024 Highlights • Executed 987,000 square feet of total leasing at a weighted average lease term of 10.2 years. Portfolio • Ended the quarter with same property portfolio occupancy of 89.3% and a weighted average lease term of 7.2 Update years (by annualized revenue). • Net loss of $58
Slide 6: Financials
Financials RETURN TO TABLE OF CONTENTS Q3 2024 6
Slide 7: Key Financial Data
Key Financial Data (dollars in thousands, except per share data) As of and for the Three Months Ended As of 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 Selected Income Statement Data: Capitalization: Rental income $ 120,620 $ 123,686 $ 139,435 $ 133,773 $ 133,361 Total common shares
Slide 8: 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, 2024 2023 2024 2023 Rental income $ 120,620 $ 133,361 $ 383,741 $ 399,780 Charlotte, NC Expenses: Real estate taxes 16,927 14,257 47,363 4
Slide 9: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except per share data) September 30, December 31, 2024 2023 ASSETS Real estate properties: Land $ 716,254 $ 786,310 Buildings and improvements 2,980,356 3,279,369 Total real estate properties, gross 3,696,610 4,065,679 Accumulated deprecia
Slide 10: Debt Summary
Debt Summary As of September 30, 2024 (dollars in thousands) Coupon Interest Principal Maturity Due at Years to Rate (5) Rate (6) Balance Date Maturity Maturity Secured Floating Rate Debt: $325,000 secured revolving credit facility (1) 8.430% 8.430% $ 200,000 1/29/2027 $ 200,000 2.3 (1) OPI's secure
Slide 11: Debt Maturity Schedule
Debt Maturity Schedule As of September 30, 2024 (dollars in thousands) $1,000,000 Secured vs. Unsecured Debt Secured $800,000 57.6% $600,000 Unsecured 42.4% $867,708 Fixed vs. Variable Rate Debt $400,000 Variable 12.9% $53,554 $490,854 $300,000 $200,000 $276,355 $140,488 $123,487 Fixed $80,784 87.1%
Slide 12: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Leverage Ratios, Coverage Ratios and Public Debt Covenants As of and for the Three Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Leverage Ratios: Net debt / total gross assets 53.2% 52.3% 56.2% 55.6% 54.9% Net debt / gross book value of real estate assets 47.1% 45.7% 50.1% 49.3% 49
Slide 13: Capital Expenditures Summary
Capital Expenditures Summary (dollars and sq. ft. in thousands, except per sq. ft. data) Capital Expenditures Summary For the Three Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Lease related costs $ 29,148 $ 25,965 $ 16,768 $ 18,497 $ 15,677 Building improvements 5,225 4,085 4,474
Slide 14: Property Dispositions
Property Dispositions Since January 1, 2024 (dollars and sq. ft. in thousands, except per sq. ft. data) Dispositions: Number of Gross Sales Price Date Sold Location Properties Sq. Ft. Gross Sales Price Per Sq. Ft. San Jose, CA 3/21/2024 Chicago, IL 1 248 $ 38,500 $ 155.24 7/31/2024 Malden, MA 1 126
Slide 15: Investment in Unconsolidated Joint Venture
Investment in Unconsolidated Joint Venture As of September 30, 2024 (dollars and sq. ft. in thousands) Unconsolidated Joint Venture: OPI Number of Weighted Average Joint Venture Ownership OPI Investment Properties Location Sq. Ft. Occupancy Remaining Lease Term (1) Prosperity Metro Plaza 51% $ 17,55
Slide 16: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS Q3 2024 16
Slide 17: Summary Same Property Results
Summary Same Property Results (dollars and sq. ft. in thousands) Atlanta, GA For the Three Months Ended For the Nine Months Ended 9/30/2024 9/30/2023 9/30/2024 9/30/2023 Properties (end of period) 123 123 123 123 Rentable sq. ft. 16,881 16,803 16,881 16,803 Percent leased 89.3% 93.9% 89.3% 93.9% Ren
Slide 18: 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 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 Properties (end of period) 145 151 151 152 154 145 Rentable sq. ft. 19,543 2
Slide 19: Tenant Diversity and Credit Characteristics
Tenant Diversity and Credit Characteristics As of September 30, 2024 Percentage of Total Annualized Rental Income Tenant Industry Tenant Credit Characteristics Hospitality: Other: 2.4% Energy Services: Non-Investment Life Sciences 2.6% 1.3% Grade and Medical: 5.3% 2.7% Real Estate & Financial: 18.0%
Slide 20: Tenants Representing 1% or More of Total Annualized Rental Income
Tenants Representing 1% or More of Total Annualized Rental Income As of September 30, 2024 (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 2,896 17.9% $ 75,190 16.6% 2
Slide 21: Lease Expiration Schedule
Lease Expiration Schedule As of September 30, 2024 (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 22: Appendix
Appendix RETURN TO TABLE OF CONTENTS Q3 2024 22
Slide 23: Company Profile and Research Coverage
Company Profile and Research Coverage The Company: Equity Research Coverage OPI is included in 122 market indices and comprises more than 1% of the following indices as of September 30, 2024: Bloomberg US Micro Cap Real Estate B. Riley Securities, Inc. Morgan Stanley Price Return Index (BMICR), Inve
Slide 24: 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 25: 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 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Calculation of NOI and Cash Basis NOI: Rental income $ 120,620 $ 123,686 $ 139,435 $ 133,773 $ 1
Slide 26: 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 9/30/2024 9/30/2023 9/30/2024 9/30/2023 Reconciliation of NOI to Same Property NOI: Rental income $ 120,620 $ 133,361 $ 383,741 $ 399,780 W
Slide 27: Operating Metrics by Collateral Pool
Operating Metrics by Collateral Pool As of September 30, 2024 (dollars and sq. ft. in thousands) Sq. Ft. Trailing Expiring Weighted Trailing Twelve Unspent Through Average Annualized Twelve Months Leasing Gross Book Number of December Remaining Rental Months Cash Basis Related Value of Real Properti
Slide 28: 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 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Net (loss) income $ (58,414) $ 76,171 $ (5,184) $ (37,151) $ (19,593) $ 12,573 $ (32,281) Interest
Slide 29: 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 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Net (loss) income $ (58,414) $ 76,171 $ (5,184) $ (37,151) $ (19,593) $ 12,573 $ (32,28
Slide 30: 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 31: 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 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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