Office Properties Income Trust Announces the Sale of Four Properties for $223 Million
September 04 2019 - 8:00AM
Business Wire
Office Properties Income Trust (Nasdaq: OPI) today announced
that it has sold four properties for an aggregate sales price of
$223.2 million, excluding closing costs. The four properties
include:
- A one-story, 182,630 square foot office building located at
2115-2116 E. Randol Mill Road, Arlington, TX.
- A one-story, 94,800 square foot office building located at 500
Canal View Boulevard, Rochester, NY.
- A one-story, 502,300 square foot vacant office building located
at 501 Ridge Avenue, Hanover, PA.
- A two-building, six-story and 14-story, 618,000 square foot
office property located at 19100 Ridgewood Parkway, San Antonio,
TX.
David Blackman, President and Chief Executive Officer of OPI,
made the following statement:
“We continue to make progress on deleveraging our balance sheet
through asset sales. With the completion of today’s announced
sales, our leverage is below 6.5x net debt to EBITDA, which is the
high end of our target leverage range. We also continue to work
through the execution of additional property sales and expect to
further reduce leverage through the remainder of 2019.”
The sales proceeds were used for general business purposes,
including the repayment of the remaining balance on the company’s
unsecured term loan, with additional proceeds used to pay down its
revolving credit facility.
Office Properties Income Trust is a real estate investment
trust, or REIT, focused on owning, operating and leasing buildings
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, MA.
Warning Concerning
Forward-Looking Statements
This press release contains statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and other securities laws.
Also, whenever OPI uses words such as “believe”, “expect”,
“anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and
negatives or derivatives of these or similar expressions, OPI is
making forward-looking statements. These forward-looking statements
are based upon OPI’s present intent, beliefs or expectations, but
forward-looking statements are not guaranteed to occur and may not
occur. Actual results may differ materially from those contained in
or implied by OPI’s forward-looking statements as a result of
various factors. Forward-looking statements involve known and
unknown risks, uncertainties and other factors, some of which are
beyond OPI's control. For example:
- This press release states that OPI expects to sell additional
properties and further reduce leverage through the remainder of
2019. However, additional property sales may not be completed and
leverage may not be reduced and could increase.
- This press release states that proceeds from the sale of
properties announced today were used to repay the remaining balance
on OPI’s unsecured term loan and borrowings under OPI’s revolving
credit facility. This may imply that OPI will maintain reduced debt
levels. However, OPI may incur additional debt in the future.
The information contained in OPI’s filings with the SEC,
including under “Risk Factors” in OPI’s periodic reports, or
incorporated therein, identifies other important factors that could
cause OPI’s actual results to differ materially from those stated
in or implied by OPI’s forward-looking statements. OPI’s filings
with the SEC are available on the SEC's website at www.sec.gov.
You should not place undue reliance upon forward-looking
statements.
Except as required by law, OPI does not intend to update or
change any forward-looking statements as a result of new
information, future events or otherwise.
A Maryland Real Estate Investment Trust with transferable shares
of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any
act or obligation of the Trust.
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version on businesswire.com: https://www.businesswire.com/news/home/20190904005270/en/
Olivia Snyder, Manager, Investor Relations (617) 219-1410
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