Office Properties Income TrustNASDAQ: OPI

NEWTON, Mass.--(BUSINESS WIRE)--Office Properties Income Trust (Nasdaq: OPI) (“OPI”) today announced certain amendments to its previously announced private exchange offers (as amended, the “Second Amended Exchange Offers”) to exchange its outstanding senior unsecured notes due 2025 (the “Existing 2025 Notes”), 2026 (the “Existing 2026 Notes”), 2027 (the “Existing 2027 Notes”) and 2031 (the “Existing 2031 Notes”, and together with the Existing 2025 Notes, Existing 2026 Notes and the Existing 202.

Office Properties Income has experienced a 70% decrease in value so far this year, with growing worries about its financial stability. The REIT currently has a total debt of $2.6 billion, with $650 million due in February 2025. To address this debt, OPI plans to issue around $610 million in new 9% senior secured notes, primarily in exchange for the maturing debt in February 2025.

The performance of Office Properties Income Trust (OPI) in the quarter ended March 2024 can be understood by looking at the headline numbers, but it could be beneficial to also compare certain key metrics with Wall Street estimates and the results from the same period last year.

Office Properties Income Trust (NASDAQ: OPI) Q1 2024 Earnings Conference Call on May 2, 2024 at 10:00 AM ET. Participants include Kevin Barry, Yael Duffy, and Brian Donley. Good morning and welcome to the conference call discussing Office Properties Income Trust's First Quarter 2024 Financial Results. All participants will be in listen-only mode.

Office Properties Income Trust (OPI) reported quarterly funds from operations (FFO) of $0.79 per share, falling short of the Zacks Consensus Estimate of $0.81 per share. This is lower than the FFO of $1.09 per share reported in the same quarter last year.

Office Properties Trust is facing material credit risk with its common shares dropping 85% in the past year. OPI's credit rating has been downgraded further into junk at "CCC+" with S&P Global citing liquidity pressure and refinancing risk. The REIT has an extremely challenging lease expiration and debt maturity schedule, but there is potential for a strong capital uplift if management can address these issues.

Office Properties Income Trust (OPI) came out with quarterly funds from operations (FFO) of $0.95 per share, missing the Zacks Consensus Estimate of $0.98 per share. This compares to FFO of $1.13 per share a year ago.

Office Properties Income Trust is facing financial challenges, including a high level of debt and the need to sell assets to repay maturing debt. OPI's cash available for distribution has been declining, making it difficult to pay down debt. The company will need to renegotiate its credit facility and sell assets to meet its debt obligations.

Office Properties Income Trust's stock dropped sharply Thursday after the real-estate-investment trust said “deterioration in market conditions” is forcing it to slash its dividend to a fraction of its earlier level.