NASDAQ$OPITQ

Office Properties Income Trust · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Office Properties Income Trust experienced a decrease in net income and Normalized FFO, but maintained a strong tenant base and liquidity position.

Office Properties Income Trust (OPI) reported a net income of $10.8 million, or $0.23 per diluted share, and Normalized FFO of $67.6 million, or $1.40 per diluted share, for the quarter ended March 31, 2020. The company completed 589,000 square feet of leasing and sold six properties for $85.4 million. OPI believes the near term impact to the company will not be material due to the strength of its tenant base and liquidity.

  • Net income for Q1 2020 was $10.8 million, or $0.23 per diluted share.
  • Normalized FFO for Q1 2020 was $67.6 million, or $1.40 per diluted share.
  • CAD for Q1 2020 was $47.4 million, or $0.98 per diluted share.
  • Completed 589,000 square feet of leasing in Q1 2020 for a 4.1% roll-up in rents.

Headline financials

Total Revenue

$0.00

Previous: $980K-100.0%
EPS (adj)

$1.40

Previous: $1.53-8.5%
Capital Expenditures

-$26.4M

Previous: -$13M-103.5%
Free Cash Flow

$11.2M

Previous: $5.77M+94.2%
Net Income

$10.8M

Previous: $34M-68.1%
Operating Income

-$95.9M

Previous: -$119M+19.5%
Gross Profit

$0.00

Previous: $980K-100.0%
Cash & Equivalents

$29.7M

No prior period
Total Assets

$4.03B

No prior period

Revenue & EPS history

OPI · Revenue · Quarterly

$0

Q1 2020-100%vs Q1 2019
Beat estimate in 3 of 16 quarters(19%)
ActualEstimate

Forward guidance

OPI anticipates that leasing activity for the second quarter of 2020 may slow, but also believes that overall tenant retention levels may increase due to the COVID-19 pandemic. OPI believes it will benefit from its investment grade tenants and the diversity of its tenant base.

Tailwinds

  • Strong tenant base with approximately 62.2% of annualized rental income paid by investment grade tenants.
  • More than half of annualized rental income comes from tenants in essential industries.
  • Minimal exposure to at risk industries.
  • Liquidity and low leverage provide safety for business.
  • Well positioned to opportunistically deploy capital during 2020.

Headwinds

  • Leasing activity for the second quarter of 2020 may slow.
  • Tenants may be significantly adversely impacted by the COVID-19 pandemic.
  • Government leases provide tenants with certain rights to terminate their lease early.
  • Budgetary and other fiscal pressures may result in some governmental tenants terminating their leases early or not renewing their leases.
  • Increased remote work arrangements may decline leasing demand for office space.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 1 quarterly earnings reports

Historical avg

-0.2%

Avg return

Earnings day

-2.9%

Avg return

5 days after

-3.1%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+26.7%

Q1 2024

Best reaction

-16.1%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q3 2025+0.0%-52.4%-55.7%
Q2 2025+0.0%+0.0%+0.0%
Q1 2025-16.1%+0.0%+0.0%
Q4 2024-5.5%+0.0%+0.0%
Q3 2024-15.4%+0.0%+0.0%
Q2 2024+7.7%+0.0%+0.0%
Q1 2024+26.7%+0.0%+0.0%
Q4 2023-1.3%+0.0%+0.0%
Q3 2023+9.0%+0.0%+0.0%
Q2 2023-3.3%+0.0%+0.0%
Q1 2023-0.8%+0.0%+0.0%
Q4 2022+6.2%+0.0%+0.0%
Q3 2022+2.6%+0.0%+0.0%
Q2 2022+3.4%+0.0%+0.0%
Q1 2022-2.5%+0.0%+0.0%
Q4 2021+2.2%+0.0%+0.0%
Q3 2021-1.8%+0.0%+0.0%
Q2 2021+0.5%+0.0%+0.0%
Q1 2021-0.3%
Q4 2020-1.0%
Q3 2020+4.6%
Q2 2020-0.1%
Q1 2020-6.5%
Q4 2019+4.7%
Q3 2019+3.8%
Q2 2019-1.8%
Q1 2019+6.6%
Q4 2018-5.6%
Q3 2018+1.2%
Q2 2018+4.0%
Q1 2018+9.6%
Q4 2017-7.5%
Q3 2017+1.8%
Q2 2017+0.6%
Q1 2017-0.6%
Q4 2016+3.3%
Q3 2016-5.4%
Q2 2016+5.7%
Q1 2016+1.5%
Q4 2015-1.3%
Q3 2015-2.8%
Q2 2015-1.0%
Q1 2015-5.5%
Q4 2014+2.6%
Q3 2014-0.7%
Q2 2014-1.8%
Q1 2014+1.0%
Q4 2013+0.3%
Q3 2013-1.9%
Q2 2013-1.9%
Q1 2013+0.2%
Q4 2012-1.1%
Q3 2012+1.6%
Q2 2012+1.7%
Q1 2012-1.3%
Q4 2011+0.3%
Q4 2009+0.3%
Q1 2011+0.3%
Q1 2010+0.3%
Q3 2010-6.7%
Q3 2011-6.7%
Q2 2011-6.2%
Q4 2010-6.2%
Q2 2010-6.2%

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