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Business Wire 19-Sep-2023 4:15 PM
Aggregate Mortgage Financing Proceeds in 2023 Exceed $177 Million
Office Properties Income Trust (NASDAQ:OPI) today announced that it has closed two mortgage loans totaling $69.2 million of gross proceeds. In aggregate to date, OPI has closed in excess of $177 million in mortgage loans with a combined total loan to value ratio of approximately 51% and a combined implied capitalization rate based on the aggregate appraised value for the collateral properties of 6.9%.
The non-recourse loans announced today consist of the following:
Loan proceeds have been used to pay down OPI's revolving credit facility and fund its redevelopment projects in Washington, D.C. and Seattle, Washington.
Matthew Brown, OPI's Chief Financial Officer and Treasurer, made the following statement:
"We have executed nearly $70 million of secured financings since the end of the second quarter, increasing aggregate mortgage financings to more than $177 million at a weighted average cap rate below 7% since May of this year. Given the challenging capital market conditions, these financings showcase OPI's high quality portfolio."
About Office Properties Income Trust
OPI is a national real estate investment trust focused on owning and leasing high quality office and mixed-use properties in select growth-oriented U.S. markets. As of June 30, 2023, approximately 63% of OPI's revenues were from investment grade rated tenants. OPI owned and leased 155 properties as of June 30, 2023, with approximately 20.8 million square feet located in 30 states and Washington, D.C. In 2023, OPI was named as an Energy Star® Partner of the Year for the sixth consecutive year. OPI is managed by The RMR Group (NASDAQ:RMR), a leading U.S. alternative asset management company with approximately $36 billion in assets under management as of June 30, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. OPI is headquartered in Newton, MA. For more information, visit opireit.com.
Warning Concerning Forward-Looking Statements
This news release contains 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, it 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. For example: Mr. Brown's statements in this press release regarding the enthusiasm from the lending community to finance OPI's high quality portfolio may imply that OPI will continue to pursue similar mortgage financings of its properties. However, OPI may not be able to obtain any such additional secured financings on the terms it expects or at all.
The information contained in OPI's filings with the Securities and Exchange Commission, or the SEC, including under the caption "Risk Factors" in OPI's periodic reports or incorporated therein, identifies important factors that could cause OPI's actual results to differ materially from those stated or implied by OPI's forward-looking statements. OPI's filings with the SEC are available at 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.