NasdaqGS:OPI

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Office Properties Income Trust

Executive Summary

OPI is a REIT focused on owning, operating and leasing properties primarily leased to single tenants and those with high credit quality characteristics such as government entities.


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Office Properties Income Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OPI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.0%

OPI

4.6%

US REITs

2.9%

US Market


1 Year Return

13.2%

OPI

-7.2%

US REITs

8.9%

US Market

Return vs Industry: OPI exceeded the US REITs industry which returned -7.4% over the past year.

Return vs Market: OPI exceeded the US Market which returned 9.2% over the past year.


Shareholder returns

OPIIndustryMarket
7 Day6.0%4.6%2.9%
30 Day7.1%11.3%10.6%
90 Day-10.9%-9.8%5.1%
1 Year21.7%13.2%-3.3%-7.2%11.4%8.9%
3 Year-58.7%-69.0%16.7%2.3%34.3%25.4%
5 Year-41.6%-63.8%47.8%17.6%60.7%42.7%

Price Volatility Vs. Market

How volatile is Office Properties Income Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Office Properties Income Trust undervalued compared to its fair value and its price relative to the market?

31.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OPI ($27.68) is trading below our estimate of fair value ($40.44)

Significantly Below Fair Value: OPI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OPI is poor value based on its PE Ratio (186x) compared to the REITs industry average (28.9x).

PE vs Market: OPI is poor value based on its PE Ratio (186x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: OPI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: OPI is good value based on its PB Ratio (0.8x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is Office Properties Income Trust forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-87.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OPI's earnings are forecast to decline over the next 3 years (-87.6% per year).

Earnings vs Market: OPI's earnings are forecast to decline over the next 3 years (-87.6% per year).

High Growth Earnings: OPI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OPI's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: OPI's revenue is forecast to decline over the next 3 years (-0.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OPI's Return on Equity is forecast to be low in 3 years time (0.8%).


Next Steps

Past Performance

How has Office Properties Income Trust performed over the past 5 years?

34.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OPI has a large one-off gain of $4.9M impacting its March 31 2020 financial results.

Growing Profit Margin: OPI's current net profit margins (1.1%) are lower than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: OPI has become profitable over the past 5 years, growing earnings by 34.6% per year.

Accelerating Growth: OPI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OPI had negative earnings growth (-21%) over the past year, making it difficult to compare to the REITs industry average (5.2%).


Return on Equity

High ROE: OPI's Return on Equity (0.4%) is considered low.


Next Steps

Financial Health

How is Office Properties Income Trust's financial position?


Financial Position Analysis

Short Term Liabilities: OPI's short term assets ($124.5M) exceed its short term liabilities ($104.4M).

Long Term Liabilities: OPI's short term assets ($124.5M) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: OPI's debt to equity ratio (130.7%) is considered high.

Reducing Debt: OPI's debt to equity ratio has increased from 92.6% to 130.7% over the past 5 years.

Debt Coverage: OPI's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: OPI's interest payments on its debt are not well covered by EBIT (1x coverage).


Balance Sheet


Next Steps

Dividend

What is Office Properties Income Trust's current dividend yield, its reliability and sustainability?

7.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OPI's dividend (7.95%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: OPI's dividend (7.95%) is in the top 25% of dividend payers in the US market (4.39%)


Stability and Growth of Payments

Stable Dividend: OPI's dividend payments have been volatile in the past 10 years.

Growing Dividend: OPI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.9%), OPI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OPI's dividends in 3 years are forecast to be thoroughly covered by earnings (0.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

David Blackman (56yo)

2yrs

Tenure

US$792,307

Compensation

Mr. David M. Blackman has been Chief Executive Officer at Tremont Mortgage Trust since June 1, 2017 and its Managing Trustee since March 9, 2018. He also serves as President at Tremont Mortgage Trust since ...


Leadership Team

NamePositionTenureCompensationOwnership
David Blackman
President2yrsUS$792.31k0.096% $1.3m
Matthew Brown
CFO & Treasurer1yrUS$91.54k0.0072% $96.2k
Christopher Bilotto
VP & COO0.083yrUS$61.52k0.0058% $77.5k
Brad Shepherd
Senior Director2.08yrsno datano data
Jennifer Clark
Secretary11.42yrsno datano data
Olivia Snyder
Manager of Investor Relationsno datano datano data

2.0yrs

Average Tenure

Experienced Management: OPI's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Blackman
President2yrsUS$792.31k0.096% $1.3m
John Harrington
Independent Trustee11yrsUS$158.16k0.025% $333.8k
Donna Fraiche
Independent Trustee1.42yrsUS$306.93k0.029% $388.9k
Adam Portnoy
Chairman of the Board1yrUS$71.91k0.29% $3.8m
Barbara Gilmore
Independent Trustee11yrsUS$168.16k0.027% $354.6k
William Lamkin
Independent Trustee1.42yrsUS$301.93k0.029% $388.9k
Jeffrey Somers
Independent Trustee11yrsUS$168.16k0.034% $459.8k
Elena Poptodorova
Lead Independent Trustee1.08yrsUS$173.16k0.014% $188.3k

1.4yrs

Average Tenure

67yo

Average Age

Experienced Board: OPI's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Office Properties Income Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Office Properties Income Trust
  • Ticker: OPI
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: US$1.334b
  • Shares outstanding: 48.20m
  • Website: https://www.opireit.com/home/default.aspx

Location

  • Office Properties Income Trust
  • Two Newton Place
  • Suite 300
  • Newton
  • Massachusetts
  • 2458
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OPINasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 2009
GOKADB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2009
OPIN.INasdaqGS (Nasdaq Global Select)5.875% SR NT 46USUSDMay 2016

Biography

OPI is a 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 11:58
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.