Office Properties Income Trust Reduces Quarterly Dividend to $0.25 Per Share

Rhea-AI Summary

Office Properties Income Trust (Nasdaq: OPI) announced a reduction in its quarterly cash distribution to $0.25 per share, totaling $1.00 annually. This change will take effect for shareholders of record on April 24, 2023, with payment expected on or about May 18, 2023.

Additionally, OPI is moving forward with a proposed merger with Diversified Healthcare Trust (Nasdaq: DHC), expected to close in the third quarter of 2023, pending shareholder approval and other necessary conditions. As of December 31, 2022, OPI owned 160 properties across 30 states, with 63% of revenues coming from investment-grade rated tenants.

Positive

• Increased financial flexibility due to the reduction of the annual dividend from $1.44 to $1.00 per share.
• Strong tenant base with 63% of revenues from investment-grade rated tenants.

Negative

• Reduction of the dividend may concern shareholders about potential future income.
• Merger with DHC is contingent on shareholder approval and other conditions, which may delay or jeopardize the transaction.

NEWTON, Mass.--(BUSINESS WIRE)-- Office Properties Income Trust (Nasdaq: OPI) today announced that OPI’s Board of Trustees has reduced OPI’s regular quarterly cash distribution on its common shares to $0.25 per common share ($1.00 per share per year). This distribution will be paid to OPI’s common shareholders of record as of the close of business on April 24, 2023 and distributed on or about May 18, 2023.

As announced earlier this week, OPI plans to merge with Diversified Healthcare Trust (Nasdaq: DHC).

About Office Properties Income Trust

OPI is a national REIT focused on owning and leasing office properties primarily to single tenants and those with high credit quality characteristics. As of December 31, 2022, approximately 63% of OPI's revenues were from investment grade rated tenants. OPI owned and leased 160 properties as of December 31, 2022, with approximately 21.0 million square feet located in 30 states and Washington, D.C. In 2023, OPI was named as an Energy Star® Partner of the Year for the sixth consecutive year. OPI is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management as of December 31, 2022, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. OPI is headquartered in Newton, MA. For more information, visit opireit.com.

WARNING CONCERNING FORWARD-LOOKING STATEMENTS

This news release contains 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, it 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. For example: (a) OPI and DHC have entered into a definitive merger agreement and the proposed merger is expected to close in the third quarter of 2023. However, the closing of the proposed merger is subject to the satisfaction or waiver of closing conditions, including OPI shareholder approval and the amendment or replacement of OPI's credit agreement, some of which are beyond OPI’s control, and OPI cannot be sure that any or all of these conditions will be satisfied or waived. In addition, financing, consents or approvals required in connection with the proposed merger may not be received or obtained within the expected timeframe, on the expected terms or at all. Accordingly, the proposed merger may not close on the contemplated terms or at all or it may be delayed; (b) OPI expects to reduce its annual dividend to $1.00 per share beginning in the second quarter of 2023 to increase financial flexibility for OPI. However, the Board of Trustees of OPI, and of the combined company following completion of the proposed merger, will consider many factors when setting distribution rates, and thus future distribution rates may be increased or decreased and OPI cannot be sure as to the rate at which future distributions will be paid.

The information contained in OPI’s filings with the Securities and Exchange Commission, or SEC, including under the caption “Risk Factors” in OPI’s periodic reports or incorporated therein, identifies important factors that could cause OPI’s actual results to differ materially from those stated or implied by OPI’s forward-looking statements. OPI’s filings with the SEC are available at 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/20230412005756/en/

Kevin Barry, Director, Investor Relations

(617) 219-1410

Source: Office Properties Income Trust

FAQ

What is the new dividend amount for Office Properties Income Trust?

The new dividend amount is $0.25 per share, or $1.00 annually.

When will the dividend be paid to shareholders?

The dividend will be paid on or about May 18, 2023, to shareholders of record as of April 24, 2023.

What is the status of the merger with Diversified Healthcare Trust?

The merger is expected to close in the third quarter of 2023, subject to shareholder approval and other conditions.

How does the dividend reduction affect OPI shareholders?

The dividend reduction may impact shareholder income, raising concerns about future distributions.

What percentage of OPI's revenues come from investment-grade tenants?

Approximately 63% of OPI's revenues are from investment-grade rated tenants.