Office Properties Income Trust OPI

Office Properties Income Trust is a real estate investment trust that focuses on owning and leasing office and mixed-use properties across the United States. The company operates a portfolio of wholly owned properties and holds a noncontrolling interest in an unconsolidated joint venture. As of December 31, 2025, its properties totaled approximately 17.1 million rentable square feet across 122 wholly owned properties and an additional 0.3 million rentable square feet through its 51% ownership in a joint venture that owned two properties. The company's business strategy emphasizes properties in select U. S. markets with high barriers to entry, aiming to attract and retain tenants through quality locations and sustainability efforts.

Office Properties Income Trust generates revenue primarily through leasing its office and mixed-use properties to tenants under long-term lease agreements. The company's income comes from contractual base rents, straight-line rent adjustments, and estimated recurring expense reimbursements from tenants. Its tenant base includes government entities and private sector organizations, with the U. S. government representing the largest single tenant, accounting for approximately 17.2% of annualized rental income as of December 31, 2025. The company seeks to increase revenue by improving occupancy, raising rents on existing leases, and pursuing selective acquisitions or redevelopments when market conditions permit.

The company operates through the following segments: direct ownership of real estate properties.

• Direct ownership of real estate properties: This segment encompasses the company's core business of acquiring, owning, leasing, and managing office and mixed-use properties. The segment includes all wholly owned properties and the company's share of properties held through its unconsolidated joint venture. Activities involve property maintenance, tenant relations, lease negotiations, and capital improvements to enhance asset value and cash flow. The segment benefits from a focus on institutional-quality properties with high-credit tenants and strategic locations in central business districts, urban infill, and suburban markets. Office Properties Income Trust emphasizes sustainability initiatives, such as energy efficiency and environmental certifications, to improve property performance and tenant appeal. As of December 31, 2025, the company had achieved LEED certification on 47 properties covering 6.7 million rentable square feet and ENERGY STAR certification on 33 properties covering 5.3 million rentable square feet. The company's sustainability efforts include participation in the ENERGY STAR Partner of the Year program for seven consecutive years and Sustained Excellence honors for five consecutive years, reflecting its commitment to reducing environmental impact while enhancing asset value.

Office Properties Income Trust operates in a highly competitive real estate industry, facing competition from other REITs, private real estate firms, financial institutions, and corporate owners of office properties. The company does not hold a dominant position in any geographic market but believes it competes effectively through the quality of its properties, the creditworthiness and diversity of its tenant base, and the structure of its lease agreements. Its competitive advantages include long-term leases with stable tenants, a focus on properties with high barriers to entry, and sustainability certifications that align with tenant preferences and government leasing policies. The company's ability to access capital and manage costs is influenced by market conditions, interest rates, and its ongoing Chapter 11 bankruptcy proceedings, which affect its financing flexibility and require Bankruptcy Court approval for most capital actions.

Office Properties Income Trust serves a diverse customer base that includes government agencies and private sector tenants across various industries. The U. S. government is the company's largest tenant, contributing approximately 17.2% of its annualized rental income. Other tenants include state and local government entities, as well as private companies in sectors such as professional services, finance, healthcare, and technology. The company's leases span a range of tenant types, including single-occupancy and multi-tenant arrangements, with a weighted average remaining lease term of approximately 6.6 years as of December 31, 2025. The company seeks to retain tenants through proactive asset management, lease renewals, and property improvements that meet evolving tenant needs for sustainability, safety, and operational efficiency.