Office Properties Income Trust Closes $69.2 Million of Mortgage Loans
September 19 2023 - 4:15PM
Business Wire
Aggregate Mortgage Financing Proceeds in 2023
Exceed $177 Million
Office Properties Income Trust (Nasdaq: OPI) today announced
that it has closed two mortgage loans totaling $69.2 million of
gross proceeds. In aggregate to date, OPI has closed in excess of
$177 million in mortgage loans with a combined total loan to value
ratio of approximately 51% and a combined implied capitalization
rate based on the aggregate appraised value for the collateral
properties of 6.9%.
The non-recourse loans announced today consist of the
following:
- $54.3 million mortgage with a 7.671% all-in fixed interest rate
and a five-year interest-only term, secured by two properties,
including a 139,000 square foot, 100% occupied property located in
Waco, Texas and a 344,000 square foot, 100% occupied property
located in Duluth, Georgia.
- $14.9 million mortgage with a 7.717% all-in fixed interest rate
and a 10-year interest-only term, secured by a 110,000 square foot,
100% occupied property located in Jackson, Mississippi.
Loan proceeds have been used to pay down OPI’s revolving credit
facility and fund its redevelopment projects in Washington, D.C.
and Seattle, Washington.
Matthew Brown, OPI’s Chief Financial Officer and Treasurer, made
the following statement:
“We have executed nearly $70 million of secured financings since
the end of the second quarter, increasing aggregate mortgage
financings to more than $177 million at a weighted average cap rate
below 7% since May of this year. Given the challenging capital
market conditions, these financings showcase OPI’s high quality
portfolio.”
About Office Properties Income Trust
OPI is a national real estate investment trust focused on owning
and leasing high quality office and mixed-use properties in select
growth-oriented U.S. markets. As of June 30, 2023, approximately
63% of OPI's revenues were from investment grade rated tenants. OPI
owned and leased 155 properties as of June 30, 2023, with
approximately 20.8 million square feet located in 30 states and
Washington, D.C. In 2023, OPI was named as an Energy Star® Partner
of the Year for the sixth consecutive year. OPI is managed by The
RMR Group (Nasdaq: RMR), a leading U.S. alternative asset
management company with approximately $36 billion in assets under
management as of June 30, 2023, and more than 35 years of
institutional experience in buying, selling, financing and
operating commercial real estate. OPI is headquartered in Newton,
MA. For more information, visit opireit.com.
Warning Concerning
Forward-Looking Statements
This news release contains 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, it 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. For
example: Mr. Brown’s statements in this press release regarding the
enthusiasm from the lending community to finance OPI’s high quality
portfolio may imply that OPI will continue to pursue similar
mortgage financings of its properties. However, OPI may not be able
to obtain any such additional secured financings on the terms it
expects or at all.
The information contained in OPI’s filings with the Securities
and Exchange Commission, or the SEC, including under the caption
“Risk Factors” in OPI’s periodic reports or incorporated therein,
identifies important factors that could cause OPI’s actual results
to differ materially from those stated or implied by OPI’s
forward-looking statements. OPI’s filings with the SEC are
available at 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230918238493/en/
Kevin Barry, Director, Investor Relations (617) 219-1410
Office Properties Income (NASDAQ:OPI)
Historical Stock Chart
From Apr 2024 to May 2024
Office Properties Income (NASDAQ:OPI)
Historical Stock Chart
From May 2023 to May 2024