Office Properties Income (OPI) AI Stock Analysis

• Market Cap: $18.43M
• Dividend Yield: 15.38%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: -11.91%
• EPS Growth: -80.43%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 70
• Industry: REIT - Office
• EPS (TTM): -0.59
• Shares Outstanding: 70,894,950
• 10 Day Avg. Volume: 1,184,820
• 30 Day Avg. Volume: 1,273,267
• PEG Ratio: <0.01
• Price to Book (P/B): 0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.27
• Enterprise Value/Market Cap: 125.88
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 6.51
• Enterprise Value/Ebitda: 2.93
• 1Y Price Target: $0.75
• Price Target Upside: 188.46% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $0.00 ▼(-100.00%Downside)

Office Properties Income's overall stock score is impacted by significant financial challenges, including declining revenue and persistent net losses, which are the most critical factors affecting the score. Technical analysis and valuation indicate weak market conditions and financial instability. The earnings call further underscores the company's struggles with liquidity and debt, despite some positive operational achievements.

Office Properties Income Business Overview & Revenue Model

Company Description

OPI is a REIT focused on owning, operating and leasing properties primarily leased to single tenants and those with high credit quality characteristics such as government entities. OPI is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.

How the Company Makes Money

OPI generates revenue primarily through leasing office spaces to tenants, which include government entities, professional service firms, and other corporate clients. The company earns income from long-term lease agreements, providing stable and predictable cash flows. Additionally, OPI may engage in property acquisitions and dispositions, strategically optimizing its portfolio to enhance returns. OPI's revenue is also influenced by factors such as property occupancy rates, rental rates, and lease renewals. The company may benefit from strategic partnerships with property management firms and real estate brokers to maximize property value and tenant retention.

Office Properties Income Financial Statement Overview

Summary

Office Properties Income faces several financial challenges, including declining revenues, persistent net losses, and high leverage. The company's cash flow generation is weak, and the balance sheet is under pressure from high debt levels. Despite some stability in EBITDA margins, the overall financial health indicates a need for strategic improvements to enhance profitability and reduce financial risk.

Income Statement

The company has seen a consistent decline in revenue over the years, with a drop from $587.9M in 2020 to $476.2M in the TTM period. Gross profit margins have decreased from 88.9% in 2020 to 74.9% in TTM. Additionally, the company has reported net losses across all periods, with net profit margins deteriorating substantially. Despite a relatively stable EBITDA margin, the declining revenue and persistent net losses are concerning trends.

Balance Sheet

The debt-to-equity ratio is relatively high, indicating significant leverage, which is typical for the REIT industry but poses risks. The equity ratio has decreased over time, suggesting a declining proportion of equity financing. Return on equity is negative due to consistent net losses. The company’s financial stability is challenged by high debt levels and declining equity percentage.

Cash Flow

Operating cash flow has decreased significantly from $233.6M in 2020 to $11.9M in TTM, which is concerning. Free cash flow has also shown volatility, with a decrease from $151.9M in 2020 to $51.9M in the TTM period. The operating cash flow to net income ratio is positive but reflects low efficiency due to negative net income. Overall, cash flow generation appears weak and inconsistent.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
476.16M	501.98M	533.55M	554.27M	576.48M	587.92M
	Gross Profit
356.58M	439.61M	360.84M	496.43M	504.51M	522.80M
	EBIT
69.21M	88.88M	334.06M	111.58M	105.09M	112.72M
	EBITDA
99.82M	285.62M	302.34M	334.14M	348.45M	368.12M
	Net Income Common Stockholders
-176.79M	-136.11M	-69.43M	-2.60M	-5.68M	6.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.05M	261.32M	12.31M	12.25M	83.03M	42.05M
	Total Assets
3.95B	3.82B	3.99B	3.98B	4.24B	3.95B
	Total Debt
2.21B	2.54B	2.58B	2.45B	2.59B	2.21B
	Net Debt
2.17B	2.28B	2.57B	2.43B	2.51B	2.17B
	Total Liabilities
2.34B	2.67B	2.73B	2.59B	2.74B	2.34B
	Stockholders Equity
1.61B	1.15B	1.26B	1.39B	1.50B	1.61B
Cash Flow		Free Cash Flow
51.98M	67.17M	141.73M	-11.49M	121.35M	151.87M
	Operating Cash Flow
11.95M	67.17M	141.73M	192.61M	221.49M	233.63M
	Investing Cash Flow
86.01M	66.61M	-194.82M	-4.62M	-442.99M	-22.99M
	Financing Cash Flow
-65.41M	114.67M	67.56M	-260.26M	249.15M	-254.48M

Office Properties Income Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPI, the sentiment is Neutral. The current price of 0.26 is above the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.27, and below the 200-day MA of 1.02, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OPI.

Office Properties Income Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIO	64 Neutral	$221.97M	―	-2.51%	7.27%	-4.92%	-128.59%
Sector *	61 Neutral	$2.83B	10.89	0.41%	9.34%	5.96%	-21.31%
FSP	53 Neutral	$175.03M	―	-9.96%	2.37%	-18.97%	-14.57%
PDM	52 Neutral	$919.38M	―	-3.79%	6.76%	-6.23%	18.07%
ONL	52 Neutral	$110.70M	―	-10.71%	4.19%	-18.92%	-15.81%
OPI	45 Neutral	$18.43M	―	-15.03%	15.38%	-11.91%	-80.43%
NYC	43 Neutral	$24.44M	―	-96.16%	―	-6.36%	-26.04%

Office Properties Income Corporate Events

Office Properties Income Elects Timothy Pohl as Trustee

Office Properties Income Trust announced the election of Timothy R. Pohl as an Independent Trustee, effective June 11, 2025, with a term extending to the 2026 annual meeting of shareholders. Pohl, a seasoned advisor in restructuring and capital solutions, will also serve on the Compensation Committee and a newly formed special committee. The company’s 2025 Annual Meeting saw the election of eight Trustees and the approval of several proposals, including executive compensation and the appointment of Deloitte & Touche LLP as auditors for 2025.

The most recent analyst rating on (OPI) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Office Properties Income stock, see the OPI Stock Forecast page.

Office Properties Income Trust’s Note Exchange Discussions

Office Properties Income Trust engaged in confidential discussions with certain parties regarding a proposed transaction involving the exchange of its outstanding senior unsecured notes for new notes with similar terms to its 8.000% Senior Priority Guaranteed Unsecured Notes due 2029. However, the parties could not reach an agreement on the rate, scope of unsecured guarantees, covenants, and other terms. This disclosure was made to satisfy public disclosure obligations under confidentiality agreements, but the information should not be considered a reliable prediction of future events.