Office Properties Income Trust Announces Sales of Four Properties

September 4, 2019 | News, Real Estate, Takeovers and Buyouts

The multistate deal allows the firm to pay off unsecured loans

Office Properties Income Trust announced the sale of four buildings this week.

The buildings are in San Antonio and Arlington Texas, as well as one in Hanover, PA.

Gross proceeds for the sale reached $223.2 million before closing costs. The firm will use the sales proceeds to repay the remaining balance on its unsecured term loan. Additional proceeds will help pay down its revolving credit facility.

“We continue to make progress on deleveraging our balance sheet through asset sales,” said David Blackman, OPI President and CEO. “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.”

Office Properties Income Trust History

Office Properties is a REIT that focuses on owning, operating and leasing properties primarily leased to single tenants and those with high credit quality characteristics such as government entities.  They currently own 209 properties and have a 91.6% occupancy rate. They have been actively disposing of assets to pay down debt and before these transactions had sold 40 properties for a total of $336.5 million.  On July 1, 2019, they sold their shares in The RMR Group (RMR) for net proceeds of approximately $105.0 million.

The REIT formed in December 2018 when Government Properties Income Trust merged with Select Income REIT.

Executives renamed the firm. The RMR Group, an alternative asset management company in Newton, Mass., manages the firm.

Finally, on the same day that the firm announced the sale, ValueEngine upgraded the stock to a Hold.

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