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OPI

Office Properties Income TrustNasdaqGS:OPI Stock Report

Market Cap

US$1.1b

7D

-10.1%

1Y

0.7%

Updated

02 Dec, 2021

Data

Company Financials +
OPI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends4/6

OPI Stock Overview

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.

Office Properties Income Trust Competitors

Cousins Properties

NYSE:CUZ

US$5.6b

Realty Income

NYSE:O

US$38.5b

W. P. Carey

NYSE:WPC

US$14.2b

CubeSmart

NYSE:CUBE

US$12.2b

Price History & Performance

Summary of all time highs, changes and price drops for Office Properties Income Trust
Historical stock prices
Current Share PriceUS$23.13
52 Week HighUS$31.69
52 Week LowUS$22.10
Beta1.19
1 Month Change-11.79%
3 Month Change-12.95%
1 Year Change0.65%
3 Year Change-30.58%
5 Year Change-70.51%
Change since IPO-70.30%

Recent News & Updates

Aug 29

Office Properties: The Risks Behind This 8.2% Yield

Office Properties Income Trust yields about 8.2%. The dividend is well covered from cash flows and the payout ratio remains modest. We take a look at what is happening underneath the surface and the risks you should know about before you buy in.

Shareholder Returns

OPIUS REITsUS Market
7D-10.1%-5.3%-4.9%
1Y0.7%25.8%17.8%

Return vs Industry: OPI underperformed the US REITs industry which returned 25.8% over the past year.

Return vs Market: OPI underperformed the US Market which returned 17.8% over the past year.

Price Volatility

Is OPI's price volatile compared to industry and market?
OPI volatility
OPI Average Weekly Movement3.9%
REITs Industry Average Movement3.6%
Market Average Movement6.0%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

Stable Share Price: OPI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: OPI's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/an/ahttps://www.opireit.com/home/default.aspx

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.

Office Properties Income Trust Fundamentals Summary

How do Office Properties Income Trust's earnings and revenue compare to its market cap?
OPI fundamental statistics
Market CapUS$1.15b
Earnings (TTM)-US$26.79m
Revenue (TTM)US$575.82m

1.9x

P/S Ratio

-41.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OPI income statement (TTM)
RevenueUS$575.82m
Cost of RevenueUS$93.29m
Gross ProfitUS$482.53m
ExpensesUS$509.32m
Earnings-US$26.79m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.55
Gross Margin83.80%
Net Profit Margin-4.65%
Debt/Equity Ratio171.1%

How did OPI perform over the long term?

See historical performance and comparison

Dividends

9.5%

Current Dividend Yield

48%

Payout Ratio

Valuation

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

16.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OPI ($23.13) is trading below our estimate of fair value ($27.74)

Significantly Below Fair Value: OPI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OPI is unprofitable, so we can't compare its PE Ratio to the US REITs industry average.

PE vs Market: OPI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OPI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OPI is good value based on its PB Ratio (0.7x) compared to the US REITs industry average (1.9x).


Future Growth

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

46.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OPI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: OPI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OPI's is expected to become profitable in the next 3 years.

Revenue vs Market: OPI's revenue (1.8% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: OPI's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OPI is forecast to be unprofitable in 3 years.


Past Performance

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

-12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OPI is currently unprofitable.

Growing Profit Margin: OPI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OPI is unprofitable, and losses have increased over the past 5 years at a rate of 12.8% per year.

Accelerating Growth: Unable to compare OPI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OPI is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (27.7%).


Return on Equity

High ROE: OPI has a negative Return on Equity (-1.78%), as it is currently unprofitable.


Financial Health

How is Office Properties Income Trust's financial position?


Financial Position Analysis

Short Term Liabilities: OPI's short term assets ($225.4M) exceed its short term liabilities ($127.4M).

Long Term Liabilities: OPI's short term assets ($225.4M) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: OPI's net debt to equity ratio (167.4%) is considered high.

Reducing Debt: OPI's debt to equity ratio has increased from 131.3% to 171.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable OPI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: OPI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 14.4% per year.


Dividend

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

9.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OPI's dividend (9.51%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: OPI's dividend (9.51%) is in the top 25% of dividend payers in the US market (3.69%)


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 (48.4%), 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 well covered by earnings (42.6% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Office Properties Income Trust has no CEO, or we have no data on them.


Leadership Team

Experienced Management: OPI's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: OPI's board of directors are not considered experienced ( 2.8 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 employee growth, exchange listings and data sources


Key Information

  • Name: Office Properties Income Trust
  • Ticker: OPI
  • Exchange: NasdaqGS
  • Founded: NaN
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: US$1.149b
  • Shares outstanding: 48.43m
  • Website: https://www.opireit.com/home/default.aspx

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 00:07
End of Day Share Price2021/12/01 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.