Office Properties Income Trust Announces the Sale of Richmond, VA Property for $130 Million

Rhea-AI Summary

Office Properties Income Trust (Nasdaq: OPI) has successfully sold a property in Richmond, VA, for $130 million, excluding closing costs. This sale translates to $418 per square foot, aligning with recent higher sales in the market. President Chris Bilotto expressed satisfaction with the sale, despite the tenant's lease expiring in 2024. Proceeds are earmarked for general business purposes, potentially including future acquisitions or property redevelopment. OPI focuses on properties leased to high-quality tenants, primarily government entities.

Positive

• Successful sale of Richmond property for $130 million, enhancing cash flow.
• Sale price of $418 per square foot is competitive with recent market trends.

Negative

• Tenant lease expiry in 2024 may affect future rental income.

Office Properties Income Trust (Nasdaq: OPI) today announced that it has completed the sale of a property in Richmond, VA for a sale price of $130.0 million, excluding closing costs.

“We are pleased with this opportunistic sale at what we believe to be a price reflective of a long-term stabilized property despite the tenant’s lease expiring in 2024,” stated Chris Bilotto, President and Chief Operating Officer of OPI. “The $418 per square foot sale is on par with the higher sales comps realized in the market over the past few years.”

Proceeds from this sale will be used for general business purposes, including the potential future acquisition or redevelopment of properties.

Office Properties Income Trust is a REIT focused on owning, operating and leasing properties primarily leased to single tenants and those with high credit quality characteristics such as government entities. OPI is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.

Warning Concerning Forward-Looking Statements

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever OPI uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, OPI is making forward-looking statements. These forward-looking statements are based upon OPI’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by OPI’s forward-looking statements as a result of various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond OPI's control. For example, this press release states that proceeds from this sale will be used for general business purposes, including the potential future acquisition or redevelopment of properties. However, OPI may not choose to or be successful in completing future acquisitions or redevelopments.

The information contained in OPI’s filings with the SEC, including under “Risk Factors” in OPI’s periodic reports, or incorporated therein, identifies other important factors that could cause OPI’s actual results to differ materially from those stated in or implied by OPI’s forward-looking statements. OPI’s filings with the SEC are available on the SEC's website at www.sec.gov.

You should not place undue reliance upon forward-looking statements.

Except as required by law, OPI does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210125005200/en/

FAQ

What was the sale price for the Richmond property by OPI?

The Richmond property was sold for $130 million, excluding closing costs.

How much per square foot did OPI sell the Richmond property for?

The property was sold for $418 per square foot.

What will OPI do with the proceeds from the property sale?

The proceeds will be used for general business purposes, including potential acquisitions or redevelopment.

What type of properties does Office Properties Income Trust manage?

OPI focuses on properties leased to single tenants, primarily those with high credit quality characteristics, such as government entities.

When does the tenant's lease expire for the sold Richmond property?

The tenant's lease for the Richmond property is set to expire in 2024.