Office Properties Income Trust Reduces Quarterly Dividend to Increase Liquidity and Financial Flexibility Going Forward
January 11 2024 - 8:00AM
Business Wire
New Dividend Rate is $0.01 Per Share Per
Quarter
Expected to Immediately Increase Liquidity
by Approximately $47 Million Per Year
Office Properties Income Trust (Nasdaq: OPI) today announced
that OPI’s Board of Trustees has reduced OPI’s regular quarterly
cash distribution on its common shares to $0.01 per common share
($0.04 per share per year). OPI’s cash distribution on its common
shares last quarter was $0.25 per common share ($1.00 per share per
year) and the cash distribution on its common shares in Q1 2023 was
$0.55 per common share ($2.20 per share per year).
Yael Duffy, President and Chief Operating Officer of OPI, made
the following statement:
“Given the deterioration in market conditions
since we last addressed our dividend rate in the first half of
2023, we believe it is prudent to further reduce the dividend to
increase our liquidity and financial flexibility when addressing
future leasing costs, capital expenditures and debt maturities.
This new dividend rate will immediately increase OPI’s liquidity by
approximately $47 million per year as well as increase liquidity by
approximately $105 million per year as compared to the dividend
rate paid in Q1 2023.”
The $0.01 per share distribution will be paid to OPI’s common
shareholders of record as of the close of business on January 22,
2024 and distributed on or about February 15, 2024.
About Office Properties Income Trust
OPI is a national REIT focused on owning and leasing high
quality office and mixed-use properties in select growth-oriented
U.S. markets. As of September 30, 2023, approximately 64% of OPI's
revenues were from investment grade rated tenants. OPI owned and
leased 154 properties as of September 30, 2023, with approximately
20.7 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
September 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 press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
and other securities laws. These forward-looking statements are
based upon OPI’s present intent, beliefs and expectations, but
these statements and the implications of these statements are not
guaranteed to occur and may not occur for various reasons, some of
which are beyond OPI’s control. For example:
- In this press release, OPI states that it is reducing its
regular quarterly distribution to increase liquidity and financial
flexibility when addressing future leasing costs, capital
expenditures and debt maturities. However, reducing OPI’s dividend
may not meaningfully increase OPI’s financial flexibility when
addressing these activities in the future.
- In this press release, OPI states that its regular quarterly
cash distribution rate is $0.01 per share per quarter or $0.04 per
share per year. OPI’s Board of Trustees considers many factors when
setting or resetting OPI’s distribution rate, including OPI’s
historical and projected income, normalized funds from operations,
cash available for distribution, the then current and expected
needs and availability of cash to pay OPI’s obligations and fund
its investments, distributions which may be required to be paid to
maintain OPI’s qualification for taxation as a REIT and other
factors deemed relevant by OPI’s Board of Trustees. Accordingly,
future distributions to OPI’s shareholders may be increased or
decreased and OPI cannot be sure as to the rate at which future
distributions will be paid.
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/20240110881462/en/
Kevin Barry, Senior Director, Investor Relations (617)
219-1410
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