Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Q4 2023 Earnings Presentation
31 slides from Office Properties Income Trust's earnings presentation, Feb 15, 2024
Slide 1: Fourth Quarter 2023 Financial Results and Supplemental Information
Atlanta, GA Office Properties Income Trust Fourth Quarter 2023 Financial Results and Supplemental Information February 15, 2024
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS Office Properties Income Trust Announces Fourth Quarter 2023 Financial Results ........................................................ 4 Fourth Quarter 2023 Highlights ...............................................................................................
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS Q4 2023 3
Slide 4: Office Properties Income Trust Announces Fourth Quarter 2023 Financial Results
OFFICE PROPERTIES INCOME TRUST ANNOUNCES FOURTH QUARTER 2023 FINANCIAL RESULTS “OPI continued to make progress on its operational Newton, MA (February 15, 2024). Office Properties Income Trust (Nasdaq: OPI) today announced its financial results for the quarter ended December 31, 2023. and financial
Slide 5: Fourth Quarter 2023 Highlights
Fourth Quarter 2023 Highlights • During the fourth quarter, executed 196,000 square feet of new and renewal leasing with a weighted average lease term of 7.0 years. Portfolio • Executed 75 leases totaling 1,698,000 square feet in 2023, with a weighted average lease term of 8.0 years. Update • Leases
Slide 6: Financials
Financials RETURN TO TABLE OF CONTENTS Q4 2023 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 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 Selected Income Statement Data: Capitalization: Rental income $ 133,773 $ 133,361 $ 133,997 $ 132,422 $ 127,922 Total common shar
Slide 8: Consolidated Statements of Income (Loss)
Consolidated Statements of Income (Loss) Three Months Ended December 31, Year Ended December 31, (amounts in thousands, except per share data) 2023 2022 2023 2022 Rental income (1) $ 133,773 $ 127,922 $ 533,553 $ 554,275 Expenses: Real estate taxes (1) 17,340 8,202 62,831 57,844 Utility expenses 6,3
Slide 9: Consolidated Balance Sheets
Consolidated Balance Sheets December 31, (dollars in thousands, except per share data) 2023 2022 ASSETS Real estate properties: Rockville, MD Land $ 786,310 $ 821,238 Buildings and improvements 3,279,369 3,114,836 Total real estate properties, gross 4,065,679 3,936,074 Accumulated depreciation (650,
Slide 10: Debt Summary
Debt Summary As of December 31, 2023 Pro Forma (1) (dollars in thousands) Coupon Interest Principal Maturity Due at Years to Rate (2) Rate (3) Balance Date Maturity Maturity Secured Floating Rate Debt: $325,000 secured revolving credit facility (1) 8.910% 8.910% $ 210,500 1/29/2027 $ 210,500 3.0 $10
Slide 11: Debt Maturity Schedule
Debt Maturity Schedule As of December 31, 2023 Pro Forma (1) (dollars in thousands) (1) $1,000,000 Secured vs. Unsecured Debt Secured 29.7% $800,000 $353,833 Unsecured 70.3% $600,000 $310,500 Fixed vs. Variable Rate Debt $400,000 Variable $650,000 11.7% $562,000 $200,000 $350,000 $300,000 $123,487 F
Slide 12: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Leverage Ratios, Coverage Ratios and Public Debt Covenants Pro Forma (1) As of and for the Three Months Ended 12/31/2023 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Leverage Ratios: Net debt / total gross assets 56.8% 55.6% 54.9% 54.7% 54.1% 53.8% Net debt / gross book value of real estate a
Slide 13: 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 For the Three Months Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Lease related costs $ 18,497 $ 15,677 $ 28,252 $ 13,041 $ 24,
Slide 14: Property Acquisitions and Dispositions
Property Acquisitions and Dispositions Since January 1, 2023 (dollars and sq. ft. in thousands, except per sq. ft. data) Acquisitions: Houston, TX On December 15, 2023, OPI acquired a land parcel adjacent to an office park it owns in Irving, TX for a purchase price of $2,750, excluding acquisition r
Slide 15: Investments in Unconsolidated Joint Ventures
Investments in Unconsolidated Joint Ventures As of December 31, 2023 (dollars and sq. ft. in thousands) Unconsolidated Joint Ventures: OPI Number of Weighted Average (1) In October 2023, OPI's joint venture partner Joint Venture Ownership OPI Investment Properties Location Sq. Ft. Occupancy Remainin
Slide 16: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS Q4 2023 16
Slide 17: Summary Same Property Results
Summary Same Property Results (dollars and sq. ft. in thousands) Chicago, IL For the Three Months Ended For the Twelve Months Ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Properties (end of period) 146 146 146 146 Rentable sq. ft. 19,290 19,310 19,290 19,310 Percent leased 89.5% 94.6% 89.5% 94.
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 Year As of and for the Three Months Ended Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 Properties (end of period) 152 154 155 157 160 152 Rentable sq. ft. (1) 20,541 20
Slide 19: Tenant Diversity and Credit Characteristics
Tenant Diversity and Credit Characteristics As of December 31, 2023 Percentage of Total Annualized Rental Income Tenant Industry Tenant Credit Characteristics Richland, WA Energy Services: Non-Investment 1.5% Grade Other: 1.5% Hospitality: 2.1% 5.6% Food: 2.9% Life Sciences and Medical: 3.0% US Gove
Slide 20: Tenants Representing 1% or More of Total Annualized Rental Income
Tenants Representing 1% or More of Total Annualized Rental Income As of December 31, 2023 (dollars and sq. ft. in thousands) Annualized % of Total % of Leased Rental Annualized Tenant Credit Rating Sq. Ft. Sq. Ft. Income Rental Income 1 U.S. Government Investment Grade 3,534 19.8% $ 99,876 19.5% 2 A
Slide 21: Lease Expiration Schedule
Lease Expiration Schedule As of December 31, 2023 (dollars and sq. ft. in thousands) Richland, WA 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 R
Slide 22: Appendix
Appendix RETURN TO TABLE OF CONTENTS Q4 2023 22
Slide 23: Company Profile and Research Coverage
Company Profile and Research Coverage The Company: Equity Research Coverage OPI is included in 160 market indices and comprises more than 1% of the following indices as of December 31, 2023: Bloomberg US Micro Cap Real Estate Price Return Index (BMICR), High Volatility (JEFFVOLA), BI North America O
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 Year Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022 Calculation of NOI and Cash Basis NOI: Rental income $ 133,773 $ 133,361 $ 133,997 $ 132,422 $ 127,9
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 Year Ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Reconciliation of NOI to Same Property NOI: Rental income $ 133,773 $ 127,922 $ 533,553 $ 554,275 Prop
Slide 27: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022 Net (loss) income $ (37,151) $ (19,593) $ (12,242) $ (446) $ 6,390 $ (69,432) $ (6,109) Add (less): Int
Slide 28: 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 Year Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022 Net (loss) income $ (37,151) $ (19,593) $ (12,242) $ (446) $ 6,390 $ (69,432) $ (6,109) Add
Slide 29: 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 30: 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 31: 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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