Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Investor Presentation (June 2024)
30 slides from Office Properties Income Trust's investor presentation, Jun 21, 2024
Slide 1: Investor Presentation June 2024
1 OFFICE PROPERTIES INCOME TRUST INVESTOR PRESENTATION June 2024 Provo, UT
Slide 2: Forward-looking statements
2 OFFICE PROPERTIES INCOME TRUST 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”, “expect”, “an
Slide 3: OPI at a Glance
3 OFFICE PROPERTIES INCOME TRUST OPI AT A GLANCE 20.3 MILLION SQUARE FEET Energy Star® Partner of the Year SEVEN CONSECUTIVE YEARS $4.6 Billion INVESTMENT PORTFOLIO(1) 85.6% OCCUPANCY 151 PROPERTIES IN PORTFOLIO 62% REVENUE FROM INVESTMENT GRADE TENANTS(2) Office Properties Income Trust (Nasdaq: OPI
Slide 4: Portfolio strength supported by high credit tenant base and diversification
4 OFFICE PROPERTIES INCOME TRUST Pho enix PORTFOLIO STRENGTH SUPPORTED BY HIGH CREDIT TENANT BASE AND GEOGRAPHIC AND INDUSTRY DIVERSIFICATION Top MSAs (1) Includes the District of Columbia, Northern Virginia and Maryland. (2) Represents percentage of total annualized rental income. 62% 33% 5% Invest
Slide 5: Recent Operational Highlights
5 OFFICE PROPERTIES INCOME TRUST RECENT OPERATIONAL HIGHLIGHTS Q1 2024 • Executed 1.7 million square feet of new and renewal leasing with a WALT of 8.5 years. • Completed a 428,000 square foot mixed-use redevelopment project in Washington, D.C., anchored by a hotel representing approximately 2% of O
Slide 6: Proactive Asset Management and Leasing
6 OFFICE PROPERTIES INCOME TRUST 0 500 1000 1500 2000 2500 3000 3500 2019 2020 2021 2022 2023 Q1 2024 Renewals New Leasing 2.0M SF New and renewal leasing Leasing Activity Square Feet (“SF”) in 000s PROACTIVE ASSET MANAGEMENT AND LEASING Staggered Lease Expirations % Total Annualized Rental Income E
Slide 7: Focused on Managing Debt Maturities
7 OFFICE PROPERTIES INCOME TRUST FOCUSED ON MANAGING DEBT MATURITIES January February March June 2023 • Completed a 5-year $300 million offering of senior secured notes at a 9% coupon. – Secured by 17 office properties with a gross book value of real estate assets of $608 million. • Recast revolving
Slide 8: $425 Million Secured Credit Facilities: Collateral Properties
8 OFFICE PROPERTIES INCOME TRUST $425 MILLION SECURED CREDIT FACILITIES: COLLATERAL PROPERTIES(1) Collateral Pool Statistics Number of Properties 19 Rentable Square Feet (millions) 3.6 % Investment Grade Tenants 62% WALT by Revenue (years) 7.6 % Leased 98% NOI (TTM) $72.4M Estimated Market Value(2)
Slide 9: $567 Million Senior Secured Notes Due 2029: First Lien Collateral Properties
9 OFFICE PROPERTIES INCOME TRUST $567 MILLION SENIOR SECURED NOTES DUE 2029: FIRST LIEN COLLATERAL PROPERTIES(1)(2) Collateral Pool Statistics Number of Properties 19 Rentable Square Feet (millions) 3.2 % Investment Grade Tenants 67% WALT by Revenue (years) 8.2 % Leased 84% NOI (TTM) $38.3M Estimate
Slide 10: $300 Million Senior Secured Notes Due 2029: Collateral Properties
10 OFFICE PROPERTIES INCOME TRUST $300 MILLION SENIOR SECURED NOTES DUE 2029: COLLATERAL PROPERTIES(1) Collateral Pool Statistics Number of Properties 17 Rentable Square Feet (millions) 2.1 % Investment Grade Tenants 38% WALT by Revenue (years) 9.7 % Leased 98% NOI (TTM) $43.0M Estimated Market Valu
Slide 11: Pro Forma Debt Summary
11 OFFICE PROPERTIES INCOME TRUST PRO FORMA DEBT SUMMARY(1) $499 $141 $81 $276 $290 $123 $922 2024 2025 2026 2027 2028 2029+ Unsecured Fixed Rate Debt Secured Floating Rate Debt Secured Fixed Rate Debt ($ in Millions) Variable Rate 12.4% Fixed Rate 87.6% Secured 57.2% Unsecured 42.8% (1) Pro forma f
Slide 12: Commitment to Sustainability
12 OFFICE PROPERTIES INCOME TRUST COMMITMENT TO SUSTAINABILITY • Encouraging consideration of ESG criteria in the broader context of investment and property management through internal Sustainability Reporting Committee. • Leveraging diversity professional associations, such as Commercial Real Estat
Slide 13: Financials
13 OFFICE PROPERTIES INCOME TRUST San Jose, CA Financials
Slide 14: Key Financial Data
14 OFFICE PROPERTIES INCOME TRUST KEY FINANCIAL DATA (1) Amounts presented for the three months ended March 31, 2024 include lease termination fee revenue of $10,524, or $0.22 per common share, related to a property that was sold in March 2024. (2) Reflects the annualized dividends paid per common s
Slide 15: Debt Summary
15 OFFICE PROPERTIES INCOME TRUST DEBT SUMMARY (1) Pro forma for the aggregate principal amount of Existing Notes accepted for exchange for $567 million of new 9% senior secured notes OPI issued in June 2024. (2) Reflects the interest rate stated in, or determined pursuant to, the contract terms. (3
Slide 16: Secured Credit Facilities: Collateral Properties
16 OFFICE PROPERTIES INCOME TRUST SECURED CREDIT FACILITIES: COLLATERAL PROPERTIES Note: All information is as of or for the trailing twelve months ended March 31, 2024. # Address City State SF Occupancy WALT by Revenue Year Built / Renovated Primary Tenant Credit Rating Annualized Rental Income ($M
Slide 17: $300 Million Senior Secured Notes Due 2029: Collateral Properties
17 OFFICE PROPERTIES INCOME TRUST $300 MILLION SENIOR SECURED NOTES DUE 2029: COLLATERAL PROPERTIES Note: All information is as of or for the trailing twelve months ended March 31, 2024. # Address City State SF Occupancy WALT by Revenue Year Built / Renovated Primary Tenant Credit Rating Annualized
Slide 18: $567 Million Senior Secured Notes Due 2029: Collateral Properties
18 OFFICE PROPERTIES INCOME TRUST $567 MILLION SENIOR SECURED NOTES DUE 2029: COLLATERAL PROPERTIES Note: All information is as of or for the trailing twelve months ended March 31, 2024. (1) Property redeveloped to life science campus and delivered in March 2024. # Address City State SF Occupancy WA
Slide 19: Calculation and Reconciliation of NOI and Cash Basis NOI
19 OFFICE PROPERTIES INCOME TRUST CALCULATION AND RECONCILIATION OF NOI AND CASH BASIS NOI (1) OPI recorded a liability for the amount by which the estimated fair value for accounting purposes exceeded the price OPI paid for its former investment in RMR Inc. common stock in June 2015. A portion of t
Slide 20: Reconciliation of Same Property NOI and Cash Basis NOI
20 OFFICE PROPERTIES INCOME TRUST RECONCILIATION AND CALCULATION OF SAME PROPERTY NOI AND SAME PROPERTY CASH BASIS NOI (dollars in thousands) (1) OPI recorded a liability for the amount by which the estimated fair value for accounting purposes exceeded the price OPI paid for its former investment in
Slide 21: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
21 OFFICE PROPERTIES INCOME TRUST CALCULATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre (1) Amounts represent equity based compensation to OPI's Trustees, OPI's officers and certain other employees of RMR. (dollars in thousands)
Slide 22: Calculation of FFO, Normalized FFO and CAD
22 OFFICE PROPERTIES INCOME TRUST CALCULATION OF FFO, NORMALIZED FFO AND CAD (1) Non-cash expenses include equity based compensation, adjustments recorded to capitalize interest expense and amortization of the liability for the amount by which the estimated fair value for accounting purposes exceede
Slide 23: Non-GAAP Financial Measures and Certain Definitions
23 OFFICE PROPERTIES INCOME TRUST 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 P
Slide 24: Non-GAAP Financial Measures and Certain Definitions
24 OFFICE PROPERTIES INCOME TRUST NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS 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
Slide 25: Appendix
25 OFFICE PROPERTIES INCOME TRUST Appendix Colorado Springs, CO
Slide 26: OPI is Managed by The RMR Group, an Alternative Asset Manager
26 OFFICE PROPERTIES INCOME TRUST OPI IS MANAGED BY THE RMR GROUP, AN ALTERNATIVE ASSET MANAGER THE RMR GROUP (NASDAQ: RMR) Approximately $41 Billion in AUM RMR Platform Approximately 2,100 Properties More than 35 Offices Nationwide National Multi-Sector Investment Platform Industrial Residential Se
Slide 27: A Winning Tradition
27 OFFICE PROPERTIES INCOME TRUST A WINNING TRADITION EPA’S 2024 ENERGY STAR® Partner of the Year. 88 properties with EPA ENERGY STAR certifications 70 properties with BOMA designations. 87 properties with LEED designations SUSTAINABILITY Ranked Boston Globe’s Top Places to Work 2020, 2021, 2022, 20
Slide 28: Relationship with RMR Provides Scale and Efficiency
28 OFFICE PROPERTIES INCOME TRUST (1) Source: S&P Global Market Intelligence. Data is for the most recently reported twelve months as of June 10, 2024. RELATIONSHIP WITH RMR PROVIDES SCALE AND EFFICIENCY Key Benefits • RMR provides all the employees; OPI has no employees. • RMR’s acquisitions team h
Slide 29: RMR fee structure aligned with shareholders
29 OFFICE PROPERTIES INCOME TRUST RMR base management fee tied to OPI share price performance. • Consists of an annual fee equal to generally 50 bps multiplied by the lower of: (1) OPI’s historical cost of real estate, or (2) OPI’s total market capitalization. • There is no incentive for RMR to comp
Slide 30: Contact
30 OFFICE PROPERTIES INCOME TRUST INVESTOR PRESENTATION June 2024 Provo, UT Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458 OPIREIT.COM
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