In This Article:
Sold 17 Properties for $114.5 Million During the Fourth Quarter 2024
Announces Early Redemption of its Remaining $113 million of Outstanding 4.50% Senior Notes Due 2025
NEWTON, Mass., January 06, 2025--(BUSINESS WIRE)--Office Properties Income Trust (Nasdaq: OPI) today announced that it closed a series of property sales for an aggregate sales price of $114.5 million, excluding closing costs, in the fourth quarter of 2024. The sold properties include 17 unencumbered properties consisting of approximately 1,791,000 square feet and a gross book value of $255.6 million as of September 30, 2024. On a combined basis, these properties were 44% occupied with a weighted average remaining lease term of 2.3 years and generated trailing twelve months net operating income of approximately $17.8 million and cash basis net operating income of approximately $19.4 million. As of December 31, 2024, OPI is under agreement to sell six additional properties consisting of approximately 581,000 square feet for an aggregate sales price of $54.8 million, excluding closing costs.
OPI also announced the early redemption of its outstanding 4.50% Senior Notes due 2025 at a redemption price equal to the principal amount of $113.1 million, plus accrued and unpaid interest to, but excluding, the date of redemption. The redemption is expected to occur on or about January 22, 2025. OPI currently expects to fund this redemption by using cash on hand.
About Office Properties Income Trust
OPI is a national REIT focused on owning and leasing office properties to high credit quality tenants in markets throughout the United States. As of September 30, 2024, approximately 59% of OPI’s revenues were from investment grade rated tenants. OPI owned 145 properties as of September 30, 2024, with approximately 19.5 million square feet located in 30 states and Washington, D.C. In 2024, OPI was named as an Energy Star® Partner of the Year for the seventh consecutive year. OPI is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with nearly $41 billion in assets under management as of September 30, 2024, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. For more information, visit opireit.com.
WARNING CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon OPI’s present intent, beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond OPI’s control. For example, this press release states that OPI is under agreements to sell five additional properties. However, these sales are subject to closing conditions and may not close on the contemplated terms or at all.