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Office Properties Income Trust (OPI) is a leading real estate investment trust (REIT) based in the United States. Focused on owning, operating, and leasing properties, OPI primarily serves single tenants with high credit quality, including prominent government entities and reputable corporations. This focus on high-credit tenants ensures stable and reliable income, which is a cornerstone of OPI's business strategy.
The company boasts a diverse property portfolio, mainly composed of single-tenant office buildings and some multitenant properties, strategically located across the United States. Its largest tenant is the U.S. government, underscoring the trust and credibility that OPI has established in managing high-stakes leases. Other tenants include a mix of smaller government entities and various corporations, all of whom share the common trait of strong creditworthiness.
OPI is managed by the operating subsidiary of The RMR Group Inc. (NASDAQ: RMR), an alternative asset management company headquartered in Newton, Massachusetts. This partnership with The RMR Group enhances OPI's operational efficiency and leverages extensive industry expertise to maximize value for its stakeholders.
Recent initiatives by OPI include strategic property acquisitions and disposals aimed at optimizing their portfolio for higher returns. The company is also actively involved in upgrading its existing properties to meet modern standards and sustainability goals, thereby enhancing their market appeal and tenant satisfaction.
The company's financial condition remains robust, supported by a diversified and high-credit tenant base. OPI continues to seek growth opportunities through strategic leasing agreements and targeted acquisitions that align with its long-term goals. For investors, OPI represents a stable and reliable investment, backed by strong fundamentals and a clear strategic vision.
The RMR Group Inc. (Nasdaq: RMR) appointed Andrew Fay as Senior Vice President to lead a new capital markets team aimed at sourcing private capital for real estate investments. Fay, with 30 years of financial industry experience, previously led family office services at Fidelity Investments. RMR has successfully attracted nearly $1 billion in investments from sovereign wealth funds, highlighting its strong track record in managing core real estate assets worth over $32 billion. The company expects Fay's expertise to strengthen relationships with ultra-high net worth individuals and institutional investors.
Office Properties Income Trust (Nasdaq:OPI) has priced an underwritten public offering of $350 million in 2.400% senior notes due 2027, with settlement expected on August 13, 2021. The net proceeds may be used for general business purposes, including repaying amounts under its revolving credit facility and redeeming existing senior notes totaling $600 million due in 2022. The offering is managed by several financial institutions and conducted under an effective shelf registration statement with the SEC.
Office Properties Income Trust (Nasdaq: OPI) reported a net loss of $66.7 million for Q2 2021, down from a profit of $1.3 million in Q2 2020. The loss includes a $48.2 million impairment charge. Normalized FFO fell to $1.15 per share from $1.40 a year earlier. OPI executed significant capital recycling, acquiring two Class A office properties for $550 million and selling three properties for $46 million, raising total proceeds from capital recycling to $287 million since 2020. The company also completed a bond offering, saving $10 million annually in interest expenses.
Office Properties Income Trust (Nasdaq: OPI) has announced a redevelopment project for 20 Massachusetts Avenue NW in Washington, D.C. This transformation will convert a Class B office building into a 10-story mixed-use property, increasing its size from 340,119 to 427,000 square feet. The project, estimated to cost about $200 million, is expected to deliver an 8-10% return and be completed in early 2023. The new facility will include office space, retail, a hotel, and various amenities, enhancing the attraction of D.C.'s Capitol Hill neighborhood.
Office Properties Income Trust (Nasdaq: OPI) announced a quarterly cash distribution of $0.55 per common share, translating to $2.20 annually. These payments will go to shareholders recorded as of July 26, 2021, and are scheduled for distribution around August 19, 2021. OPI focuses on owning, operating, and leasing real estate primarily to high-credit-quality tenants, including government entities. The dividend rate is subject to future adjustments at the discretion of the Board of Trustees based on OPI's financial performance and cash availability.
Office Properties Income Trust (Nasdaq: OPI) will release its second quarter 2021 financial results on July 29, 2021, after the Nasdaq closes. A conference call hosted by President Christopher Bilotto and CFO Matthew Brown is scheduled for July 30, 2021, at 10:00 a.m. Eastern Time to discuss these results. The call can be accessed at (877) 328-1172 for U.S. participants or (412) 317-5418 for international participants. A live audio webcast will also be available on the company’s website, with a replay accessible until August 6, 2021.
Office Properties Income Trust (Nasdaq: OPI) has successfully acquired two Class A office properties totaling $550 million. The first property, 1K Fulton in Chicago, priced at $355 million, is 99% leased, primarily to Google, with a 4.7% cap rate. The second property, Twelve24 in Atlanta, acquired for $195 million, is 98% leased to Insight Global with a cap rate of 6.3%. Funded through cash and a $350 million credit facility, OPI aims to sell non-core properties to repay the facility. These acquisitions align with OPI's strategy to enhance portfolio metrics and cash flows.
Office Properties Income Trust (Nasdaq: OPI) held its 2021 Annual Meeting of Shareholders, resulting in key re-elections and approvals. William A. Lamkin was re-elected as an Independent Trustee with 96.1% of votes, while Elena B. Poptodorova received 71.0%. An advisory vote on executive compensation was approved with 93.3% support. Shareholders ratified Deloitte & Touche LLP as independent auditors with 99.0% approval. Additionally, Jennifer B. Clark was elected as a Managing Trustee, enhancing the board's gender diversity to 50% female.
Office Properties Income Trust (Nasdaq: OPI) will have its President, Chris Bilotto, and CFO, Matt Brown, presenting at Nareit’s REITweek: 2021 Virtual Investor Conference on June 10, 2021, at 11:15 a.m. ET. Interested parties can register for free to access the live presentation.
OPI, a real estate investment trust, specializes in properties mainly leased to single tenants, including government entities. The company is managed by The RMR Group Inc., based in Newton, Massachusetts.
Office Properties Income Trust (Nasdaq: OPI) has priced a public offering of $300 million in 2.650% senior notes due 2026. The settlement is expected on May 18, 2021, subject to customary conditions. The proceeds will primarily be used for general business purposes, potentially including the redemption of $310 million of its 5.875% Senior Notes due 2046. The offering is conducted under an effective shelf registration statement filed with the SEC.
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