Office Properties Income Trust · OTC:OPITQ
Office Properties Income Trust — Investor Presentation (April 2024)
28 slides from Office Properties Income Trust's investor presentation, Apr 1, 2024
Slide 1: Office Properties Income Trust Investor Presentation April 2024
1 OFFICE PROPERTIES INCOME TRUST INVESTOR PRESENTATION April 2024 Atlanta, GA
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 20.5 MILLION SQUARE FEET Energy Star® Partner of the Year SEVEN CONSECUTIVE YEARS $4.6 Billion INVESTMENT PORTFOLIO(1) 86.9% OCCUPANCY 152 PROPERTIES IN PORTFOLIO 64% REVENUE FROM INVESTMENT GRADE TENANTS(2) Office Properties Income Trust (Nasdaq: OPI
Slide 4: Recent Company Highlights
4 OFFICE PROPERTIES INCOME TRUST RECENT COMPANY HIGHLIGHTS 2023 Business Highlights • 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 approxim
Slide 5: Secured Credit Facilities: Collateral Properties
5 OFFICE PROPERTIES INCOME TRUST SECURED CREDIT FACILITIES: COLLATERAL PROPERTIES(1) $425 Million Credit Agreement: Collateral Number of Properties 19 Rentable Square Feet (millions) 3.6 % Investment Grade Tenants 62% WALT by Revenue (years) 7.9 % Leased 99% 2023 GAAP NOI $72.8M Loan to Estimated Ma
Slide 6: Senior Secured Notes Due 2029: Collateral Properties
6 OFFICE PROPERTIES INCOME TRUST SENIOR SECURED NOTES DUE 2029: COLLATERAL PROPERTIES(1) $300 Million Senior Secured Notes: Collateral Number of Properties 17 Rentable Square Feet (millions) 2.1 % Investment Grade Tenants 38% WALT by Revenue (years) 9.7 % Leased 98% 2023 GAAP NOI $42.1M Loan to Esti
Slide 7: Secure and Stable Cash Flow Supported by High Credit Tenant Base
7 OFFICE PROPERTIES INCOME TRUST Pho enix SECURE AND STABLE CASH FLOW SUPPORTED BY HIGH CREDIT TENANT BASE AND GEOGRAPHICALLY DIVERSE PORTFOLIO Top MSAs (1) Includes the District of Columbia, Northern Virginia and Maryland. (2) Represents percentage of total annualized rental income. 64% 30% 6% Inve
Slide 8: Proactive Asset Management and Leasing
8 OFFICE PROPERTIES INCOME TRUST -60% -40% -20% 0% 20% 40% 60% 80% 0 500 1000 1500 2000 2500 3000 3500 2019 2020 2021 2022 2023 Renewals New Leasing 1.7M SF New and renewal leasing Leasing Activity Square Feet (“SF”) in 000s PROACTIVE ASSET MANAGEMENT AND LEASING Staggered Lease Expirations % Total
Slide 9: Focused on Managing Debt Maturities
9 OFFICE PROPERTIES INCOME TRUST FOCUSED ON MANAGING DEBT MATURITIES(1) $650 $300 $350 $562 $311 $123 $354 2024 2025 2026 2027 2028 2029+ Unsecured Fixed Rate Debt Secured Floating Rate Debt Secured Fixed Rate Debt ($ in Millions) Variable Rate 11.7% 88.3% Fixed Rate Secured 29.7% Unsecured 70.3% (1
Slide 10: Commitment to Sustainability
10 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 11: Financials
11 OFFICE PROPERTIES INCOME TRUST San Jose, CA Financials
Slide 12: Key Financial Data
12 OFFICE PROPERTIES INCOME TRUST KEY FINANCIAL DATA (1) Beginning in the first quarter of 2024, OPI decreased its regular quarterly distribution rate to $0.01 per common share ($0.04 per common share annually). (2) Reflects the annualized dividends paid per common share during the period as a perce
Slide 13: Debt Summary
13 OFFICE PROPERTIES INCOME TRUST DEBT SUMMARY (1) Pro forma for OPI entering its new $425,000 credit agreement in January 2024 and issuing of $300,000 of 9.00% senior secured notes in February 2024. The maturity date of the credit agreement is January 29, 2027 and includes an option to extend the m
Slide 14: Secured Credit Facilities: Collateral Properties
14 OFFICE PROPERTIES INCOME TRUST SECURED CREDIT FACILITIES: COLLATERAL PROPERTIES Note: All information is as of or for the year ended December 31, 2023. # Address City State SF Occupancy WALT by Revenue Year Built / Renovated Primary Tenant Credit Rating Annualized Rental Income ($M) 2023 GAAP NOI
Slide 15: Senior Secured Notes Due 2029: Collateral Properties
15 OFFICE PROPERTIES INCOME TRUST SENIOR SECURED NOTES DUE 2029: COLLATERAL PROPERTIES Note: All information is as of or for the year ended December 31, 2023. # Address City State SF Occupancy WALT by Revenue Year Built / Renovated Primary Tenant Credit Rating Annualized Rental Income ($M) 2023 GAAP
Slide 16: Calculation and Reconciliation of NOI and Cash Basis NOI
16 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 17: Reconciliation of Same Property NOI and Same Property Cash Basis NOI
17 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 18: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
18 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) For the Three Months Ended For the Year Ended 12/31/2023 9/30/2023 6/30
Slide 19: Calculation of FFO, Normalized FFO and CAD
19 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 20: Non-GAAP Financial Measures and Certain Definitions
20 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 21: Non-GAAP Financial Measures and Certain Definitions
21 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 22: Non-GAAP Financial Measures and Certain Definitions (Continued)
22 OFFICE PROPERTIES INCOME TRUST NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS (Continued) Purchase price represents the gross purchase price, including assumed debt, if any, and excludes acquisition related costs and purchase price adjustments and allocations. Rolling four quarter CAD repres
Slide 23: Appendix
23 OFFICE PROPERTIES INCOME TRUST Appendix Colorado Springs, CO
Slide 24: OPI Is Managed by The RMR Group, an Alternative Asset Manager
24 OFFICE PROPERTIES INCOME TRUST RMR’s Operations Include: National Multi-Sector Investment Platform OFFICEINDUSTRIAL MULTIFAMILY MEDICAL LIFE SCIENCESENIOR LIVING HOTELS RETAIL RMR Managed Companies Over 2,000 Properties More Than $5 Billion in Annual Revenues Over $41 Billion In AUM Over 1,100 CR
Slide 25: A Winning Tradition
25 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 26: Relationship with RMR Provides Scale and Efficiency
26 OFFICE PROPERTIES INCOME TRUST (1) Source: S&P Global Market Intelligence. Data is for the most recently reported twelve months as of February 29, 2024. RELATIONSHIP WITH RMR PROVIDES SCALE AND EFFICIENCY Key Benefits • RMR provides all the employees; OPI has no employees. • RMR’s acquisitions te
Slide 27: RMR Management Fee Structure
27 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 28: Contact: Two Newton Place, Newton, MA
28 OFFICE PROPERTIES INCOME TRUST INVESTOR PRESENTATION April 2024 Atlanta, GA Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458 OPIREIT.COM
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