Total of $953.6 Million in Asset Sales Completed in 2019
Additional $72.1 Million in Property Sales Expected to Close in First Quarter 2020
Office Properties Income Trust (Nasdaq: OPI) today announced that it has sold seven properties for an aggregate sales price of $205.4 million, excluding closing costs. Proceeds from today’s announced sales have been used for general business purposes, including the repayment of debt.
Five properties sold in December 2019 for an aggregate sales price of $191.3 million, excluding closing costs, include:
- A two-story, 122,646 square foot office building located at 2149 West Dunlap Avenue, Phoenix, AZ.
- A two-story, 148,488 square foot office building located at 4181 Ruffin Road, San Diego, CA.
- A one-story, 75,621 square foot office building located at 6448-6450 Via Del Oro, San Jose, CA.
- A ten-story, 170,817 square foot office building located at 400 State Avenue, Kansas City, KS.
- A ten-story, 497,477 square foot office building located at 1001 Noble Energy Way, Houston, TX.
For the year ended December 31, 2019, OPI has generated asset sales proceeds of $953.6 million, including the sale of 58 properties for an aggregate sales price of $848.9 million, excluding closing costs, and all of its shares of The RMR Group Inc. for net proceeds of $104.7 million. This amount is larger than expected heading into 2019 due to some opportunistic asset sales during the year.
Two properties sold in January 2020 for an aggregate sales price of $14.1 million, excluding closing costs, include:
- A two-story, 34,356 square foot office building located at 2721 Jefferson Davis Highway, Stafford, VA.
- A two-story, 30,300 square foot office building located at 2723 Jefferson Davis Highway, Stafford, VA.
OPI currently has four properties under purchase and sale agreements for an aggregate sales price of $72.1 million, excluding closing costs, that are expected to close during the first quarter of 2020.
Office Properties Income Trust is a real estate investment trust, or REIT, focused on owning, operating and leasing buildings 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, MA.
Warning Concerning Forward-Looking Statements
This press release contains statements that constitute 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, OPI 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. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond OPI's control. For example:
- OPI has entered agreements to sell four properties for an aggregate sales price of $72.1 million, excluding closing costs. These sales are subject to conditions. Those conditions may not be satisfied and these sales may not occur, may be delayed or their terms may change.
The information contained in OPI’s filings with the SEC, including under "Risk Factors" in OPI’s periodic reports, or incorporated therein, identifies other important factors that could cause OPI’s actual results to differ materially from those stated in or implied by OPI’s forward-looking statements. OPI’s filings with the SEC are available on 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.
Olivia Snyder, Manager, Investor Relations