NEWTON, Mass.--(BUSINESS WIRE)--Office Properties Income Trust (Nasdaq: OPI) today announced that it has sold four properties for an aggregate sales price of $223.2 million, excluding closing costs. The four properties include:
- A one-story, 182,630 square foot office building located at 2115-2116 E. Randol Mill Road, Arlington, TX.
- A one-story, 94,800 square foot office building located at 500 Canal View Boulevard, Rochester, NY.
- A one-story, 502,300 square foot vacant office building located at 501 Ridge Avenue, Hanover, PA.
- A two-building, six-story and 14-story, 618,000 square foot office property located at 19100 Ridgewood Parkway, San Antonio, TX.
David Blackman, President and Chief Executive Officer of OPI, made the following statement:
“We continue to make progress on deleveraging our balance sheet through asset sales. 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.”
The sales proceeds were used for general business purposes, including the repayment of the remaining balance on the company’s unsecured term loan, with additional proceeds used to pay down its revolving credit facility.
Office Properties Income Trust is a real estate investment trust, or REIT, focused on owning, operating and leasing buildings primarily leased to single tenants and those with high credit quality characteristics such as government entities. OPI is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, MA.
Warning Concerning Forward-Looking Statements
This press release contains statements that constitute 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, OPI 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. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond OPI's control. For example:
- This press release states that OPI expects to sell additional properties and further reduce leverage through the remainder of 2019. However, additional property sales may not be completed and leverage may not be reduced and could increase.
- This press release states that proceeds from the sale of properties announced today were used to repay the remaining balance on OPI’s unsecured term loan and borrowings under OPI’s revolving credit facility. This may imply that OPI will maintain reduced debt levels. However, OPI may incur additional debt in the future.
The information contained in OPI’s filings with the SEC, including under “Risk Factors” in OPI’s periodic reports, or incorporated therein, identifies other important factors that could cause OPI’s actual results to differ materially from those stated in or implied by OPI’s forward-looking statements. OPI’s filings with the SEC are available on 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.
