OPI Same-Property Cash NOI Turns Positive After a Decline

The Tip Desk · November 12, 2026 · 3 min read

Same property Cash Basis NOI rose 14.8% to $51.5 million as the REIT sold 13 properties for $143.4 million and issued $425 million of 2031 notes.

Office Properties Income Trust (OPI), a national office REIT, reported same property Cash Basis NOI of $51.5 million for the three months ended September 30, 2026, a 14.8% increase from a year earlier after a 0.5% year-over-year decline in Q1 2026.

Same property NOI rose 19.1% to $60.6 million, reversing an 8.4% year-over-year decline in the first quarter. Cash Basis NOI margin expanded to 53.7% from 50.1% a year earlier; Same Property NOI margin was 57.7%. Same property rental income was $105.0 million on 90 properties and 13.4 million square feet, with occupancy unchanged at 88.8%.

The company posted a net loss of $45.8 million, or $2.09 a share, versus a $66.3 million loss, or $0.90 a share, a year earlier. Normalized FFO was $20.5 million, or $0.93 a share. Rental income was $114.2 million versus $109.1 million a year earlier; NOI was $63.5 million and Adjusted EBITDAre $59.1 million. Interest expense was $39.9 million versus $53.3 million a year earlier. The company recorded a $5.9 million loss on impairment of real estate and a $5.5 million loss on sale of real estate.

Leasing accelerated. Total leasing reached 400,000 square feet at a weighted average term of 8.7 years, with renewals 96.8% of leased square footage, versus 176,000 square feet at a 7.3-year weighted average term in the prior quarter. New leases were 13,000 square feet; renewals were 387,000. Weighted average remaining lease term on the same property portfolio was 6.2 years by annualized revenue.

The company continued to shrink the portfolio. It sold 13 properties, about 1.54 million square feet, for $143.4 million during the quarter, excluding closing costs. Fifteen properties, about 1.72 million square feet, were under agreement for $134.1 million. Three properties, about 300,000 square feet, were being actively marketed. OPI identified an additional 26 properties, about 3.47 million square feet with 76.9% occupancy, for sale. In October it sold one property of about 135,000 square feet for $12.1 million.

Portfolio occupancy rose to 80.7% from 77.9% at June 30, 2026, as properties fell to 109 from 122 and rentable square feet to 15.6 million from 17.1 million after dispositions. Investment-grade tenants accounted for 62.4% of annualized rental income at September 30, 2026, versus 60.1% at March 31, 2026. The U.S. Government was 18.9% of annualized rental income.

OPI issued $425 million of 8.75% Senior Secured Notes due 2031, with net proceeds of about $408 million. It fully repaid a $325 million revolving credit facility and a $100 million term loan due January 2027 using those proceeds and cash on hand. It redeemed $48.6 million of 8.375% notes due 2029 during the quarter, including $43.6 million tied to collateral sales and a $5.0 million mandatory payment. In October it redeemed another $29.6 million of those notes, and in November it optionally redeemed $31.6 million of 10.000% notes due June 2031 using proceeds from collateral sales.

Secured debt principal was $1.66 billion at September 30, 2026, with a weighted average rate of 8.933% and 3.9 years to maturity. Total capital expenditures were $10.4 million, including $10.4 million of recurring capital expenditures, versus $10.9 million total in the three months ended March 31, 2026. Average rentable square feet during the period were 16.3 million.

The company said approximately 62% of revenues were from investment grade rated tenants as of September 30, 2026. It owned 109 properties with about 15.6 million square feet in 27 states and Washington, D.C. The RMR Group, its manager, had about $37 billion in assets under management.