Office Properties Tr.

Office Properties Income Trust has placed a senior secured note for $425 million with an 8.75% interest rate due 2031. The securities are secured by first-priority mortgages on 19 office properties, as well as by the pledge of equity interests and guarantees from certain subsidiaries. The proceeds will be used to fully repay the secured revolving credit facility and the secured term loan; closing is expected on September 24, 2026. » More on de.investing.com

Office Properties Income Trust has completed its financial restructuring and emerged from Chapter-11. Total debt was reduced by roughly $714 million; the balance sheet now shows $1.7 billion of debt and about 22 million newly issued common shares. Creditors received a combination of newly issued senior notes, common shares and warrants; the revolving credit facility and senior notes were adjusted or reinstated. The new common shares are expected to trade on NASDAQ under the ticker OPI, RMR will remain responsible for business and property management, and the management team remains unchanged. » More on de.investing.com

OPI reports normalized FFO of $9.4 million, or $0.13 per share, for Q2 2025 on annualized revenue of $398 million (−18% y/y) and has suspended the quarterly dividend to conserve liquidity. Interest expense rose 37% to $53 million; available cash is about $90 million, and nearly $280 million of debt matures in 2026. Management is reviewing refinancing and asset-sale options; projected operating cash flow for the rest of 2025 is −$45 million to −$55 million, and same-property NOI for Q3 is expected to decline 7–9%. » More on de.investing.com

S&P Global Ratings downgraded the senior unsecured bonds of Office Properties Income Trust (due 2031) from ‘CC’ to ‘D’ after a missed interest payment of about $1.8 million. The recovery rating remained at ‘5’, the issuer rating at ‘SD’ and other issue ratings were unchanged. S&P does not expect the payment to be made within the 30‑day grace period, citing weak liquidity and existing indebtedness, and noted ongoing restructuring efforts with advisers. The ratings will be reassessed once more information on the company’s plans becomes available. » More on de.investing.com

Shares of Office Properties Income Trust fell sharply after reports by 9fin suggested the REIT was considering filing for insolvency due to more than $900 million of liabilities maturing through 2027. Market participants fear problems refinancing the heavy debt load in a strained commercial real estate market. Office Properties Income Trust has not publicly confirmed the considerations, according to the report. » More on de.investing.com