Office Properties Income Trust (OPI) reported a net loss of $136.1 million for the fiscal year ending December 31, 2024, compared to a net loss of $69.4 million in the previous year. The company's total revenue decreased to $502.0 million from $533.6 million, reflecting a decline in rental income primarily due to property dispositions and increased vacancies. Operating expenses also rose slightly, totaling $595.8 million, which included a significant loss on impairment of real estate valued at $181.6 million. The weighted average common shares outstanding increased to 51.8 million, resulting in a net loss per share of $2.63, up from $1.44 in 2023.
In terms of operational changes, OPI sold 24 properties during 2024, totaling approximately 2.8 million rentable square feet, for an aggregate sales price of $199.4 million. The proceeds from these sales were utilized to repay debt and enhance liquidity. As of December 31, 2024, the company owned 128 properties across 29 states and the District of Columbia, with a total rentable area of approximately 17.8 million square feet. The U.S. government remained OPI's largest tenant, contributing 17% of annualized rental income.
The company faced significant challenges, including a substantial amount of debt totaling $2.6 billion, with upcoming maturities that raised concerns about its ability to continue as a going concern. As of February 13, 2025, OPI reported total available liquidity of $113 million, with near-term obligations including lease obligations of $81.9 million and principal debt repayments of $26 million in 2025 and $291.5 million in 2026. The company is actively exploring refinancing options and potential asset sales to address these liquidity needs.
Looking ahead, OPI's management expressed uncertainty regarding the future demand for office space, particularly in light of ongoing shifts toward remote work and changing tenant needs. The company has a significant number of lease expirations scheduled for 2025 and 2026, representing approximately 9.9% and 4.2% of annual rental income, respectively. The ability to renew these leases or find replacement tenants remains a critical focus, as market conditions continue to evolve.
In summary, OPI's financial performance in 2024 reflected ongoing challenges in the commercial real estate sector, particularly in the office space market. The company is navigating a complex landscape of debt obligations, tenant dynamics, and market conditions while seeking to enhance liquidity and stabilize its operations.
About OFFICE PROPERTIES INCOME TRUST
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