Office Properties Income Trust (OPI) announced that its Board of Trustees has suspended the quarterly cash distribution on its common shares. The previous distribution rate was $0.01 per share, or $0.04 per share annually. This decision was made to preserve OPI’s cash.
The company expects to retain approximately $3.0 million of cash annually as a direct result of this dividend suspension. This move underscores the company's focus on strengthening its liquidity position amidst ongoing financial pressures and significant debt maturities.
The suspension of the dividend is a clear indication of the severe liquidity crunch OPI is facing. It prioritizes cash preservation over shareholder distributions, reflecting the critical need to address its financial obligations and maintain operations.
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