NASDAQ$OPITQ

Office Properties Income Trust · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Announced fourth quarter and year end 2019 results, exceeding asset sales goals and demonstrating strong leasing momentum.

Office Properties Income Trust (OPI) reported a net income of $65.0 million, or $1.35 per share, for the fourth quarter of 2019. Normalized FFO was $66.4 million, or $1.38 per share. The company exceeded its asset sales goals, generating approximately $1.0 billion in proceeds since January 1, 2019. OPI also continued its strong leasing momentum, with 779,000 square feet of leasing completed during the quarter.

  • Net income available for common shareholders was $65.0 million, or $1.35 per share.
  • Normalized FFO available for common shareholders was $66.4 million, or $1.38 per share.
  • Completed 779,000 square feet of leasing with a slight roll-up in rent and an average lease term of more than seven years.
  • Generated asset sales proceeds of approximately $1.0 billion since January 1, 2019.

Headline financials

Total Revenue

$160M

Previous: $104M+54.5%
EPS (adj)

$1.38

Previous: $1.56-11.5%
Net Income

$65M

No prior period
Operating Income

$66M

No prior period
Gross Profit

$142M

No prior period
Cash & Equivalents

$93.7M

No prior period
Total Assets

$4.19B

No prior period

Revenue & EPS history

OPI · Revenue · Quarterly

$160M

Q4 2019+54.5%vs Q4 2018
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Forward guidance

OPI looks forward to continuing to execute on its business plan in 2020, with a focus now on capital recycling and disciplined acquisitions to shape its portfolio and potentially growing its cash available for distribution to shareholders.

Tailwinds

  • OPI will continue to be able to improve its results of operations and financial condition.
  • OPI's leverage will remain below or within its targeted leverage range
  • OPI will acquire properties in the future.
  • OPI's leasing activity will remain strong
  • The occupancies at its properties may increase.

Headwinds

  • OPI’s business plan may not succeed or produce the results OPI expects and, as a result, OPI may not be able to grow its cash available for distribution
  • OPI may seek to obtain additional debt financing in the future. As a result, OPI may not maintain its reduced leverage and its leverage may increase above its targeted leverage range in the future.
  • OPI's ability to acquire properties is dependent in large part on when such properties become available for acquisition, its ability to successfully negotiate and compete for acquisitions, and its availability of capital to fund acquisitions. As a result, OPI may not be able to acquire properties in the future.
  • OPI may not realize positive leasing activity in future periods
  • OPI's property occupancy may not increase and could decline

Historical earnings impact

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

Avg. return before/after earnings

Based on 18 quarterly earnings reports

Historical avg

-0.2%

Avg return

Earnings day

-2.8%

Avg return

5 days after

-2.7%

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%-0.2%+5.0%
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%
Q1 2011+0.3%
Q4 2011+0.3%
Q4 2009+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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