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Dec 31, 2019
OPI Q4 2019 Earnings Report
Announced fourth quarter and year end 2019 results, exceeding asset sales goals and demonstrating strong leasing momentum.
Key Takeaways
Office Properties Income Trust (OPI) reported a net income of $65.0 million, or $1.35 per share, for the fourth quarter of 2019. Normalized FFO was $66.4 million, or $1.38 per share. The company exceeded its asset sales goals, generating approximately $1.0 billion in proceeds since January 1, 2019. OPI also continued its strong leasing momentum, with 779,000 square feet of leasing completed during the quarter.
Net income available for common shareholders was $65.0 million, or $1.35 per share.
Normalized FFO available for common shareholders was $66.4 million, or $1.38 per share.
Completed 779,000 square feet of leasing with a slight roll-up in rent and an average lease term of more than seven years.
Generated asset sales proceeds of approximately $1.0 billion since January 1, 2019.
Forward Guidance
OPI looks forward to continuing to execute on its business plan in 2020, with a focus now on capital recycling and disciplined acquisitions to shape its portfolio and potentially growing its cash available for distribution to shareholders.
Positive Outlook
- OPI will continue to be able to improve its results of operations and financial condition.
- OPI's leverage will remain below or within its targeted leverage range
- OPI will acquire properties in the future.
- OPI's leasing activity will remain strong
- The occupancies at its properties may increase.
Challenges Ahead
- OPI’s business plan may not succeed or produce the results OPI expects and, as a result, OPI may not be able to grow its cash available for distribution
- OPI may seek to obtain additional debt financing in the future. As a result, OPI may not maintain its reduced leverage and its leverage may increase above its targeted leverage range in the future.
- OPI's ability to acquire properties is dependent in large part on when such properties become available for acquisition, its ability to successfully negotiate and compete for acquisitions, and its availability of capital to fund acquisitions. As a result, OPI may not be able to acquire properties in the future.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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