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Office Properties Income Trust
(NASDAQ:OPI)
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Rating:48Neutral
Price Target:
$12.00
â–¼(-32.24% Downside)
Action:Reiterated
Date:09/24/26
The score is primarily held down by weak financial performance, including widening losses and a recent shift to negative operating and free cash flow. Offsetting this, management’s post-restructuring plan and improving NOI/operating indicators provide some support, and recent debt refinancing extends maturities. Technicals and valuation are mixed: momentum is neutral with a high stochastic reading, while the very high dividend yield is balanced by loss-making results (negative P/E).
Positive Factors
Portfolio Scale and Tenant Quality
A large, geographically diversified portfolio with substantial exposure to government and investment-grade tenants supports recurring rental income and occupancy resilience. The 6.2-year weighted average lease term also provides visibility into cash flows over the next several years.
Negative Factors
Persistent Profitability Deterioration
Multi-year revenue contraction combined with widening losses and negative EBITDA shows that the current earnings base is not yet covering the company’s broader financial burdens. Continued weakness could limit reinvestment capacity and make recovery dependent on asset sales or restructuring actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Portfolio Scale and Tenant Quality
A large, geographically diversified portfolio with substantial exposure to government and investment-grade tenants supports recurring rental income and occupancy resilience. The 6.2-year weighted average lease term also provides visibility into cash flows over the next several years.
Read all positive factors
Office Properties Income Trust (OPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$265.86M
Dividend Yield0.17%
Average Volume (3M)93.75K
Price to Earnings (P/E)―
Beta (1Y)4.02
Revenue Growth-5.75%
EPS Growth-712.58%
CountryUS
EmployeesN/A
SectorGeneral
Sector StrengthN/A
IndustryREIT - Office
Share Statistics
EPS (TTM)-4.35
Shares Outstanding21,953,577
10 Day Avg. Volume75,365
30 Day Avg. Volume93,745
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)2.76
Price to Sales (P/S)5.46
P/FCF Ratio-55.07
Enterprise Value/Market Cap7.46
Enterprise Value/Revenue4.51
Enterprise Value/Gross Profit33.95
Enterprise Value/Ebitda-2.50
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Office Properties Income Trust Business Overview & Revenue Model
Company Description
Office Properties Income Trust is a national REIT focused on owning and leasing office properties to high credit quality tenants in markets throughout the United States. As of June 30, 2026, approximately 62% of OPI's revenues were from investment...
How the Company Makes Money
OPI primarily makes money by leasing its office properties to tenants under commercial lease agreements. Its main revenue stream is rental income (base rent) received from tenants for the right to occupy and use space in OPI-owned buildings, typic...
Office Properties Income Trust Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 29, 2027
Earnings Call Sentiment Neutral
The call communicates meaningful positive developments — successful emergence from Chapter 11, a $714M debt reduction, improved operating performance with same-property NOI up 11.9%, active leasing and a robust disposition program that has already generated proceeds and agreements. However, material near-term financial risks remain: elevated total debt (~$1.7B) and high interest costs (~9%), a large credit facility maturing in January 2027, limited unrestricted cash (~$51M), and reliance on asset sales and refinancing to meet upcoming payments. Overall the company has substantially improved its financial footing and is executing on a clear plan, but tangible liquidity and refinancing execution risk balance the positives.Positive Updates
Successful Emergence from Chapter 11 and Debt Reduction
OPI emerged from Chapter 11 on June 17, 2026, began trading on NASDAQ (OPI), reduced total debt by approximately $714 million, extended and reshaped its debt maturity profile, installed a refreshed board, and retained RMR under new 5-year management agreements.
Negative Updates
High Remaining Debt and Elevated Interest Costs
Post-emergence capital structure includes approximately $1.7 billion of debt with a weighted average interest rate of ~9% and weighted average maturity of 3 years. Annualized cash interest expense is approximately $154 million, plus ~$6.1M of non-cash interest amortization projected annually.
Read all updates
Q2-2026 Updates
Positive
Negative
Successful Emergence from Chapter 11 and Debt Reduction
OPI emerged from Chapter 11 on June 17, 2026, began trading on NASDAQ (OPI), reduced total debt by approximately $714 million, extended and reshaped its debt maturity profile, installed a refreshed board, and retained RMR under new 5-year management agreements.
Read all positive updates
Company Guidance
OPI’s guidance and targets call for 2026 total capital expenditures of approximately $55–$65 million (split $9–$11M building capital and $46–$54M leasing capital) and full‑year G&A of $20–$22M, with a focus on addressing near‑term maturities via asset sales and refinancing (32 assets identified for disposition: 3.7M SF generating $43M of annualized revenue and expected to produce in excess of $275M gross proceeds; 2 properties sold for ~$59M, 9 PSAs for $50M, 12 LOIs for $148M). Balance sheet metrics include ~$51M unrestricted cash and ~$53M restricted cash (including $35M restructuring reserves), ~22M common shares outstanding, and ~$1.7B of debt with a weighted average interest rate of ~9% and weighted average maturity of ~3 years (including a $425M credit facility at 9.15% maturing Jan‑2027); annualized cash interest is ~$154M (plus ~$6.1M non‑cash interest amortization) and scheduled 8.375% note principal payments of $5M (paid 7/31), $15M due 11/1, and $30M due 2/1/2027 are expected to be funded by cash and asset sale proceeds. Operational and portfolio metrics reiterated include 122 wholly owned properties totaling ~17.1M SF with a WALT of 6.2 years, annualized rental income of $413M (cash rents $307M, straight‑line $23M, reimbursements $83M), Q2 normalized FFO $19M, adjusted EBITDAre $65M, same‑property cash NOI up 11.9% to $55M, Q2 property operating expenses $48.8M (TTM $197.4M), Q2 G&A $5.5M, 176k SF leased in Q2 (WA term >7 years), a leasing pipeline >2.4M SF (1.4M SF or 58% renewals), and ~2.0M SF (14% of annualized revenue) expiring through end‑2027 with ~660k SF expected to vacate (reduced to just over 200k SF, <2% of revenue, after planned dispositions).Office Properties Income Trust Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
28
Negative
Cash Flow
16
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 440.14M | 445.57M | 501.98M | 533.55M | 554.27M | 576.48M |
| Gross Profit | 58.45M | 1.48M | 439.61M | 360.84M | 496.43M | 504.51M |
| EBITDA | -793.80M | 109.17M | 285.62M | 302.34M | 334.14M | 348.45M |
| Net Income | -319.53M | -272.37M | -136.11M | -69.43M | -6.11M | -8.18M |
Balance Sheet | ||||||
| Total Assets | 2.37B | 3.49B | 3.82B | 3.99B | 3.98B | 4.24B |
| Cash, Cash Equivalents and Short-Term Investments | 50.75M | 80.66M | 261.32M | 12.31M | 12.25M | 83.03M |
| Total Debt | 1.72B | 2.42B | 2.54B | 2.58B | 2.45B | 2.59B |
| Total Liabilities | 1.86B | 2.61B | 2.67B | 2.73B | 2.59B | 2.74B |
| Stockholders Equity | 511.45M | 880.99M | 1.15B | 1.26B | 1.39B | 1.50B |
Cash Flow | ||||||
| Free Cash Flow | -36.58M | -44.20M | 67.17M | 141.73M | -11.49M | 121.35M |
| Operating Cash Flow | -30.92M | -6.57M | 67.17M | 141.73M | 192.61M | 221.49M |
| Investing Cash Flow | -27.87M | 2.19M | 66.61M | -194.82M | -4.62M | -442.99M |
| Financing Cash Flow | 69.83M | -190.13M | 114.67M | 67.56M | -260.26M | 249.15M |
Office Properties Income Trust Risk Analysis
Office Properties Income Trust disclosed 52 risk factors in its most recent earnings report. Office Properties Income Trust reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Office Properties Income Trust Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $1.20B | -13.54 | -5.98% | 7.07% | 0.70% | -17.55% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | $509.52M | -3.64 | -19.42% | 11.00% | 3.52% | 25.03% | |
49 Neutral | $128.35M | -1.34 | -14.88% | 3.56% | -6.53% | -20.91% | |
48 Neutral | $265.86M | -3.51 | -34.83% | 0.17% | -5.75% | -712.58% | |
48 Neutral | $47.87M | -1.15 | -6.97% | 8.69% | -5.02% | 21.97% |
* General Sector Average
OPI
Office Properties Income Trust
12.11
-21.74
-64.22%
FSP
Franklin Street Properties
0.46
-0.87
-65.28%
PDM
Piedmont Office
9.61
1.08
12.66%
BDN
Brandywine Realty
2.91
-0.33
-10.07%
ONL
Orion Office REIT
2.25
-0.29
-11.49%
NLOP
Net Lease Office Properties
9.53
-0.80
-7.74%
Office Properties Income Trust Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Office Properties Income Trust Reshapes Capital Structure With Notes
Positive
Sep 24, 2026
On September 24, 2026, Office Properties Income Trust issued $425 million of 8.75% senior secured notes due 2031, guaranteed by certain subsidiaries and secured by first‑priority liens on 19 office properties and related equity interests. Th...
Business Operations and StrategyPrivate Placements and Financing
Office Properties Income Trust Prices New Secured Notes
Positive
Sep 10, 2026
On September 10, 2026, Office Properties Income Trust announced it had priced a $425 million offering of 8.75% senior secured notes due 2031 in a private placement to qualified institutional buyers and certain non-U.S. investors. The notes will be...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.