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Office Properties Income Trust (OPI) investor relations material

Office Properties Income Trust Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary31 Jul, 2025

Executive summary

  • Portfolio consists of 125 properties totaling 17.3 million sq. ft. across 29 states and D.C., with a weighted average lease term of 6.8 years as of June 30, 2025.

  • Same property occupancy ended the quarter at 85.2%, with 59% of revenues from investment-grade tenants.

  • Reported a net loss of $41.2 million for Q2 2025, with normalized FFO of $9.4 million ($0.13/share).

  • Annualized revenue declined 18% year-over-year to $398 million due to persistent leasing challenges in the office sector.

  • Substantial doubt remains about ability to continue as a going concern due to liquidity and debt maturity concerns.

Financial highlights

  • Q2 2025 net loss: $41.2 million; normalized FFO: $9.4 million ($0.13/share); rental income: $114.5 million, down from $123.7 million year-over-year.

  • Same property NOI was $62.4 million, down 6.1% year-over-year; same property cash basis NOI was $55.0 million, down 10.3%.

  • Interest expense for Q2 was $53 million, up 37% year-over-year.

  • Cash and cash equivalents at quarter end were $91.95 million.

  • Total debt was $2.43 billion, with 79.8% secured and 82.5% fixed rate.

Outlook and guidance

  • Q3 2025 normalized FFO expected between $0.07 and $0.09 per share, down sequentially due to lower NOI and higher expenses.

  • Recurring G&A expense projected at $5 million for Q3; quarterly interest expense run rate at $52 million.

  • Same property cash basis NOI expected to decrease 7%-9% year-over-year in Q3 2025 due to tenant vacancies.

  • Projected cash from operations to be a use of $45-$55 million for the remainder of 2025.

  • Ongoing evaluation of asset sales, debt exchanges, and equity issuances to address upcoming debt maturities.

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Frequently asked questions

Office Properties Income Trust is a real estate investment trust focused on owning, operating, and leasing office properties. Its portfolio primarily includes single-tenant and multi-tenant office buildings, with a significant portion leased to government agencies and high-credit corporate tenants. The company’s properties are located across major U.S. metropolitan areas. The company is headquartered in Newton, Massachusetts, and its shares are listed on the NASDAQ.

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