NEWTON, Mass.--(BUSINESS WIRE)--Office Properties Income Trust (Nasdaq: OPI) announced today that it has amended its business management agreement with The RMR Group LLC, or RMR LLC, a majority-owned subsidiary of The RMR Group Inc. (Nasdaq RMR), to replace the benchmark index used in the calculation of incentive management fees. Pursuant to the amendment, for periods beginning on and after August 1, 2021, the MSCI U.S. REIT/Office REIT index will replace the discontinued SNL U.S. REIT Office Index and be used to calculate benchmark returns per share for purposes of determining any incentive management fee payable by OPI to RMR LLC. For periods prior to August 1, 2021, the SNL U.S. REIT Office Index will continue to be used.
For purposes of calculating any incentive fees, the following lists the historical returns used to calculate incentive fees under the applicable SNL indices for the two years and stub period ending July 31, 2021:
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Total Return for the Period |
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Benchmark Return (cumulative % return of SNL Index) at 7/31/2021(1) |
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12/31/2018 to 7/31/2021 |
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12/31/2019 to 7/31/2021 |
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12/31/2020 to 7/31/2021 |
SNL U.S. REIT Office Index |
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19.70% |
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-6.06% |
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18.27% |
(1) Adjusted for common share issuances during the measurement period.
The calculation of incentive management fees for the next three measurement periods will continue to use the SNL U.S. REIT Office index in calculating the benchmark returns for periods through July 31, 2021. Following the announcement that the SNL U.S. REIT Office Index would be discontinued, OPI and RMR sought to replace the expiring index with a comparable, publicly accessible and widely-used index that most closely matched its composition and historical performance. The MSCI U.S. REIT/Office REIT Index is a well-known REIT benchmark and the historical returns are comparable to the SNL U.S. REIT Office Index it will be replacing.
About Office Properties Income Trust
Office Properties Income Trust is a real estate investment trust, or REIT, focused on owning, operating and leasing properties 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, Massachusetts.
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.
