Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Q4 2024 Earnings Presentation
38 slides from Office Properties Income Trust's earnings presentation, Feb 13, 2025
Slide 1: Fourth Quarter 2024 Financial Results and Supplemental Information
Richland, WA Office Properties Income Trust Fourth Quarter 2024 Financial Results and Supplemental Information February 13, 2025
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS Office Properties Income Trust Announces Fourth Quarter 2024 Financial Results ........................................................ 4 Fourth Quarter 2024 Highlights ...............................................................................................
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS Q4 2024 3
Slide 4: Office Properties Income Trust Announces Fourth Quarter 2024 Financial Results
OFFICE PROPERTIES INCOME TRUST ANNOUNCES FOURTH QUARTER 2024 FINANCIAL RESULTS "To end the year, we advanced our asset disposition and Newton, MA (February 13, 2025). Office Properties Income Trust (Nasdaq: OPI) today announced its financial results for the quarter ended December 31, 2024. refinanci
Slide 5: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights • Executed 359,000 square feet of total leasing at a weighted average lease term of 7.1 years, with lease renewals accounting Portfolio for 91% of leased square footage. Update • Ended the quarter with same property portfolio occupancy of 89.4% and a weighted average l
Slide 6: Financials
Financials RETURN TO TABLE OF CONTENTS Q4 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 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 Selected Income Statement Data: Capitalization: Rental income $ 118,238 $ 120,620 $ 123,686 $ 139,435 $ 133,773 Total common shar
Slide 8: Consolidated Statements of Income (Loss)
Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Rental income $ 118,238 $ 133,773 $ 501,979 $ 533,553 Sacramento, CA Expenses: Real estate taxes 15,006 17,340 62,369 62,831 Utility expe
Slide 9: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands, except per share data) December 31, 2024 2023 ASSETS Real estate properties: Land $ 711,039 $ 786,310 Buildings and improvements Sterling, VA 2,946,520 3,279,369 Total real estate properties, gross 3,657,559 4,065,679 Accumulated depreciation (618,6
Slide 10: Debt Summary
Debt Summary As of December 31, 2024 Pro Forma (1) (dollars in thousands) Coupon Interest Principal Maturity Due at Years to Rate (6) Rate (7) Balance Date Maturity Maturity (1) Pro forma for the full redemption of the 2025 Notes completed in January 2025. Secured Floating Rate Debt: (2) OPI's secur
Slide 11: Debt Maturity Schedule
Debt Maturity Schedule As of December 31, 2024 Pro Forma (1) (dollars in thousands) 1,000,000 Secured vs. Unsecured Debt 800,000 Secured 79.7% $267,992 600,000 Unsecured 20.3% $910,278 Fixed vs. Variable Rate Debt 400,000 Variable $53,554 17.3% $425,000 200,000 $151,000 $276,355 $140,488 $123,487 Fi
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 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Leverage Ratios: Washington, D.C. Net debt / total gross assets 53.3% 53.2% 52.3% 56.2% 55.6% Net debt / gross book value of real estate assets 50.7% 47
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 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Lease related costs $ 27,107 $ 29,148 $ 25,965 $ 16,768 $ 18,497 Building improvements 6,229 5,225 4,08
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. 3/21/2024 Chicago, IL 1 248 $ 38,500 $ 155.24 Irving, TX 7/31/2024 Malden, MA 1 126 7,
Slide 15: Investment in Unconsolidated Joint Venture
Investment in Unconsolidated Joint Venture As of December 31, 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% $ 17,370
Slide 16: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS Q4 2024 16
Slide 17: Summary Same Property Results
Summary Same Property Results (dollars and sq. ft. in thousands) For the Three Months Ended For the Year Ended 12/31/2024 12/31/2023 12/31/2024 12/31/2023 Norfolk, VA Properties (end of period) 118 118 118 118 Rentable sq. ft. 16,455 16,444 16,455 16,444 Percent leased 89.4% 91.7% 89.4% 91.7% Rental
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 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 Properties (end of period) 128 145 151 151 152 128 Rentable sq. ft. 17,763 19,543
Slide 19: Tenant Diversity and Credit Characteristics
Tenant Diversity and Credit Characteristics As of December 31, 2024 Percentage of Total Annualized Rental Income Tenant Industry Tenant Credit Characteristics Hospitality: 2.5% Non-Investment Life Sciences and Grade Medical: 2.8% 5.0% Other: 3.8% State and U.S. Government: 17.0% Municipalities: 7.8%
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, 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 2,508 16.6% $ 72,587 17.0% 2 A
Slide 21: Lease Expiration Schedule
Lease Expiration Schedule As of December 31, 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 Q4 2024 22
Slide 23: Company Profile and Governance Information
Company Profile and Governance Information Board of Trustees Management: Donna D. Fraiche Barbara D. Gilmore John L. Harrington OPI is managed by The RMR Group (Nasdaq: RMR). Independent Trustee Independent Trustee Independent Trustee RMR is an alternative asset management company that William A. La
Slide 24: 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 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Calculation of NOI and Cash Basis NOI: Rental income $ 118,238 $ 120,620 $ 123,686 $ 139,435 $ 133,7
Slide 25: 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 For the Year Ended 12/31/2024 12/31/2023 12/31/2024 12/31/2023 Reconciliation of NOI to Same Property NOI: Rental income $ 118,238 $ 133,773 $ 501,979 $ 533,553 Colu
Slide 26: Property Detail by Collateral Pool
Property Detail (by Collateral Pool) As of December 31, 2024 (dollars and sq. ft. in thousands) Sq. Ft. Trailing Expiring Weighted Trailing Twelve Unspent Number Through Average Annualized Twelve Months Leasing Gross Book of December Remaining Rental Months Cash Basis Related Value of Real Propertie
Slide 27: Property Detail by Collateral Pool
Property Detail (by Collateral Pool) As of December 31, 2024 (dollars and sq. ft. in thousands) Sq. Ft. Trailing Expiring Weighted Trailing Twelve Unspent Number Through Average Annualized Twelve Months Leasing Gross Book of December Remaining Rental Months Cash Basis Related Value of Real Propertie
Slide 28: Property Detail by Collateral Pool
Property Detail (by Collateral Pool) As of December 31, 2024 (dollars and sq. ft. in thousands) Sq. Ft. Trailing Expiring Weighted Trailing Twelve Unspent Number Through Average Annualized Twelve Months Leasing Gross Book of December Remaining Rental Months Cash Basis Related Value of Real Propertie
Slide 29: Property Detail by Collateral Pool
Property Detail (by Collateral Pool) As of December 31, 2024 (dollars and sq. ft. in thousands) Sq. Ft. Trailing Expiring Weighted Trailing Twelve Unspent Number Through Average Annualized Twelve Months Leasing Gross Book of December Remaining Rental Months Cash Basis Related Value of Real Propertie
Slide 30: Property Detail by Collateral Pool
Property Detail (by Collateral Pool) As of December 31, 2024 (dollars and sq. ft. in thousands) Sq. Ft. Trailing Expiring Weighted Trailing Twelve Unspent Number Through Average Annualized Twelve Months Leasing Gross Book of December Remaining Rental Months Cash Basis Related Value of Real Propertie
Slide 31: Property Detail by Collateral Pool
Property Detail (by Collateral Pool) As of December 31, 2024 (dollars and sq. ft. in thousands) Sq. Ft. Trailing Expiring Weighted Trailing Twelve Unspent Number Through Average Annualized Twelve Months Leasing Gross Book of December Remaining Rental Months Cash Basis Related Value of Real Propertie
Slide 32: Property Detail by Collateral Pool
Property Detail (by Collateral Pool) As of December 31, 2024 (dollars and sq. ft. in thousands) Sq. Ft. Trailing Expiring Weighted Trailing Twelve Unspent Number Through Average Annualized Twelve Months Leasing Gross Book of December Remaining Rental Months Cash Basis Related Value of Real Propertie
Slide 33: Property Detail by Collateral Pool
Property Detail (by Collateral Pool) As of December 31, 2024 (dollars and sq. ft. in thousands) Sq. Ft. Trailing Expiring Weighted Trailing Twelve Unspent Number Through Average Annualized Twelve Months Leasing Gross Book of December Remaining Rental Months Cash Basis Related Value of Real Propertie
Slide 34: 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 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Net (loss) income $ (148,680) $ (58,414) $ 76,171 $ (5,184) $ (37,151) $ (136,107) $ (69,432) Interest
Slide 35: 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 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Net (loss) income $ (148,680) $ (58,414) $ 76,171 $ (5,184) $ (37,151) $ (136,107) $ (69,43
Slide 36: 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 37: 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 38: 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”,
Office Properties Income Trust — Q4 2024 Earnings Presentation on 6ix