Office Properties Income Trust (OPI) announced its financial results for the second quarter ended June 30, 2025, reporting a rental income of $114.5 million. This represents a 7.4% decrease compared to the second quarter of 2024. For the first six months of 2025, rental income was $228.1 million, down 13.3% year-over-year, primarily due to increased vacancies and lower rents.
Net Operating Income (NOI) also saw a significant decline, falling 13.9% in Q2 2025 to $65.5 million and 22.8% for the first six months to $126.9 million. Overall portfolio occupancy stood at 81.2% as of June 30, 2025, down from 83.5% a year prior, while same-property occupancy declined from 91.4% to 85.2%. Despite these declines, OPI executed 15 leases totaling 416,000 square feet, achieving a weighted average rental rate increase of 6.4% over prior rates.
For the third quarter of 2025, management projects Normalized FFO to be between $0.07 and $0.09 per share, a sequential decrease attributed to lower NOI and higher operating expenses. Critically, OPI is projecting cash from operations to be a *use* of $45 million to $55 million during the balance of 2025, including capital expenditures of approximately $43 million. This projection underscores the ongoing liquidity strain.
The company continues its disposition strategy, with three properties currently under agreement to sell for $28.9 million, two of which are expected to close in September 2025 for $10.7 million. These efforts aim to mitigate occupancy risk and reduce carrying costs, although declining property valuations present challenges.
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