Office Properties Income Trust (OPI): History, Ownership, Mission, How It Works & Makes Money

Office Properties Income Trust (OPI) is a national Real Estate Investment Trust (REIT), but with its November 2025 Chapter 11 bankruptcy filing, how can a company with a portfolio of 124 properties and approximately 17.2 million square feet still face such a defintely critical restructuring?

The stark reality is that despite generating a trailing twelve-month revenue of over $467 million as of mid-2025-with approximately 59% of that income coming from high-credit tenants like the U.S. Government-the office market downturn and massive debt load have created an impossible capital structure.

This pressure is clear in the TTM net loss of over $294 million, which has compressed the market capitalization down to a mere $17.7 million as of July 2025, a situation that demands a deep dive into its business model.

If you are looking for a definitive case study on how external management, long-term leases, and a shifting commercial real estate landscape intersect, you need to understand the history and mechanics of how OPI works and makes money before and after this crisis.

Office Properties Income Trust (OPI) History

You're looking for the origin story of Office Properties Income Trust (OPI), and it's not a typical startup tale; it's a spin-off that grew through major acquisitions, only to face a major financial restructuring in 2025. The direct takeaway is that OPI was engineered by a larger asset manager to focus on office assets, but the massive 2018 merger and subsequent office market shifts led to a necessary Chapter 11 filing in October 2025 to survive.

Given Company's Founding Timeline

Year established

Office Properties Income Trust was established in 2009, emerging during a period of significant real estate market volatility.

Original location

The company's corporate headquarters have been consistently located in Newton, Massachusetts.

Founding team members

OPI was not founded by a small group of individuals but was instead created as a spin-off from REIT Management & Research LLC (RMR), a leading alternative asset management company. RMR, which still manages OPI today, essentially provided the initial structure and assets, so the founding was more an institutional maneuver than a personal venture.

Initial capital/funding

The initial funding was primarily the transfer of office properties and assets under management from RMR, allowing OPI to begin trading on the New York Stock Exchange (NYSE) as a distinct entity in 2009. While the precise initial IPO capital isn't public, the initial funding was a portfolio of office assets, which is a common way for a real estate investment trust (REIT) to start.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's history is defintely defined by two massive, market-shaping decisions: the 2018 merger and the 2025 financial restructuring.

The acquisition of Government Properties Income Trust (GOV) in 2018 was the single most transformative event. It ballooned OPI's portfolio, creating one of the largest owners of office properties primarily leased to government tenants, but it also introduced substantial debt and portfolio concentration risk. This is where the current story really starts.

The long-term impact of that merger, coupled with the secular shift away from traditional office use, came to a head in 2025. The company took clear, decisive actions to address the situation:

• Capital Raise and Debt Management (March 2025): OPI increased its authorized common shares to 250 million and established an at-the-market program to sell up to $100 million in shares to raise much-needed liquidity.
• Distribution Suspension (July 2025): The company suspended its quarterly distribution to preserve cash, a clear signal of financial strain and a necessary step to maintain liquidity.
• Chapter 11 Filing (October 2025): The most consequential moment was the voluntary Chapter 11 filing, which was a strategic move to implement a Restructuring Support Agreement (RSA). This plan aims to equitize (convert to equity) approximately $1 billion of existing notes, drastically reducing the debt burden.

To support operations during the restructuring, OPI secured a commitment for $125 million in new money, debtor-in-possession (DIP) financing. As of June 30, 2025, the company's portfolio consisted of 124 wholly owned properties, encompassing approximately 17.2 million rentable square feet, with about 59% of its revenues coming from investment-grade rated tenants. The restructuring is a tough but necessary pivot to survive the current market and reset the balance sheet.

You can see more on the current investor landscape in Exploring Office Properties Income Trust (OPI) Investor Profile: Who's Buying and Why?

Office Properties Income Trust (OPI) Ownership Structure

Office Properties Income Trust (OPI) is a publicly traded Real Estate Investment Trust (REIT) that, as of November 2025, is in a state of financial distress, having filed for Chapter 11 bankruptcy on October 30, 2025.

The company was delisted from the Nasdaq stock exchange on October 6, 2025, and now trades over-the-counter (OTC) under the ticker OPITQ. The decision-making structure is currently transitioning from common shareholders to creditors, as the restructuring plan proposes to equitize (convert to equity) approximately $1 billion of outstanding notes, effectively extinguishing the existing common stock.

Office Properties Income Trust's Current Status

OPI's current status is highly complex, marked by a formal Chapter 11 bankruptcy filing in the Southern District of Texas to implement a prearranged Restructuring Support Agreement (RSA) with noteholders. This move is intended to materially delever the company, reducing its debt from approximately $2.4 billion to about $1.3 billion.

The company's financial health deteriorated significantly, reporting a net loss of $41.2 million in Q2 2025 and acknowledging 'substantial doubt about its ability to continue as a going concern' in its Q2 2025 filings. They suspended their quarterly dividend in July 2025 to conserve cash, which was only $90.1 million as of July 30, 2025. The U.S. Government remains its largest tenant, contributing 17.1% of annualized rental income as of June 30, 2025.

Office Properties Income Trust's Ownership Breakdown

The table below reflects the approximate ownership breakdown prior to the Chapter 11 filing, but the critical point for November 2025 is the impending shift in control to the noteholders. The current common stock is at high risk of being canceled under the proposed restructuring. You need to look at who holds the debt now, not just the stock. Exploring Office Properties Income Trust (OPI) Investor Profile: Who's Buying and Why?

Office Properties Income Trust's Leadership

Office Properties Income Trust is externally managed by The RMR Group, a leading U.S. alternative asset management company with approximately $40 billion in assets under management as of June 30, 2025. This management structure means OPI does not have its own employees, instead relying on personnel provided by RMR. The core leadership team steering the company through the Chapter 11 process includes:

• Yael Duffy: President and Chief Operating Officer (COO) since 2024. She is also an Executive Vice President of The RMR Group.
• Brian Donley: Chief Financial Officer (CFO) and Treasurer. He is responsible for managing the company's tight liquidity position and the nearly $280 million in debt principal payments due in 2026.
• Jennifer Clark: Secretary.
• David Blackman: Board Member.

The management team's immediate focus is operational continuity while navigating the court-supervised restructuring, which is defintely a high-stakes balancing act. Their commentary highlights the persistent leasing challenges and declining property valuations in the office sector.

Office Properties Income Trust (OPI) Mission and Values

Office Properties Income Trust's core purpose centers not on broad expansion, but on a focused, defensive strategy: owning and leasing office space almost exclusively to high-credit-quality tenants, especially the U.S. Government, to stabilize cash flow in a volatile market.

Office Properties Income Trust's Core Purpose

You're looking for the company's DNA, and for a Real Estate Investment Trust (REIT) like Office Properties Income Trust, that DNA is clearly defined by its investment criteria and tenant base. The formal mission statement isn't a flowery paragraph; it's a list of non-negotiable asset quality and credit standards designed to manage risk, especially given the current office sector headwinds and the company's recent restructuring efforts.

Official mission statement

The company's operational mission is to be the premier national REIT for institutional-grade office properties leased to tenants with strong financial profiles, which means a relentless focus on credit quality and lease term. This focus is the entire ballgame for them.

• Own and lease office properties primarily to high credit quality tenants across the United States.
• Maintain a portfolio where a significant majority of revenue comes from investment-grade-rated tenants; this stood at approximately 59% of revenues as of June 30, 2025.
• Target single-tenant properties or corporate headquarters that are strategic to the tenant's mission, ensuring long-term occupancy.
• Prioritize properties leased to government entities, with the U.S. Government currently representing a substantial 17.1% of annualized rental income.

Vision statement

The vision for Office Properties Income Trust is less about massive growth and more about portfolio optimization and financial stability, especially as they navigate a challenging capital structure. They are focused on emerging from their debt-reduction process as a more financially flexible company.

• Achieve a more stable and financially flexible capital structure, following the recent move to equitize approximately $1 billion of existing notes.
• Drive portfolio quality by executing a capital recycling program, selectively selling older properties to improve the average age and weighted average remaining lease term.
• Lead in environmental stewardship within the office REIT sector, building on their recognition as an Energy Star® Partner of the Year for seven consecutive years through 2024.

For a deeper dive into who is betting on this strategy, you should check out Exploring Office Properties Income Trust (OPI) Investor Profile: Who's Buying and Why?

Office Properties Income Trust slogan/tagline

While the company doesn't use a catchy, consumer-facing slogan in its investor materials-a common trait for B2B-focused REITs-their operational tagline is clear: 'Office Real Estate Backed by Investment-Grade Credit.' This is their defintely non-negotiable value proposition.

Here's the quick math on why this matters: in Q2 2025, the company reported a net loss of $41.2 million, but their normalized Funds From Operations (FFO) was still $9.4 million, or $0.13 per share. That FFO, however small, is largely underpinned by those high-credit tenants who pay their rent reliably, even as the broader office market struggles. This credit focus is what keeps the lights on and provides a baseline for the restructuring.

Office Properties Income Trust (OPI) How It Works

Office Properties Income Trust (OPI) operates as a real estate investment trust (REIT) that generates revenue primarily by owning and leasing office properties across the United States, focusing on securing long-term leases with high credit quality tenants.

Office Properties Income Trust's Product/Service Portfolio

OPI's core business is straightforward: acquiring, owning, and managing a large portfolio of office buildings to collect rental income. As of June 30, 2025, the portfolio included 125 properties encompassing approximately 17.3 million square feet across 29 states and Washington, D.C..

Office Properties Income Trust's Operational Framework

The company's operational framework is centered on a triple-net lease structure (NNN) model for many properties, where the tenant pays for most operating expenses, property taxes, and insurance, simplifying OPI's cost structure. This model is defintely key for a REIT.

The day-to-day operations are managed by The RMR Group, an external manager, which handles property-level functions like leasing, asset management, and capital expenditure planning. This arrangement allows OPI to maintain a lean internal structure, but it also introduces management fees that impact cash flow.

Here's the quick math on recent performance: For the second quarter of 2025, OPI reported a net loss of $41.2 million, with annualized revenue declining to $398 million. The company is currently focused on a critical debt restructuring process, having entered into a Restructuring Support Agreement in October 2025 to address nearly $280 million in debt principal payments due in 2026.

• Maintain occupancy: Same property occupancy was 85.2% as of June 30, 2025.
• Manage liquidity: Ended Q2 2025 with only $90.1 million in cash.
• Capital allocation: Projected cash from operations is a negative use of $45 million to $55 million for the remainder of 2025.
• Asset disposition: Sold four properties year-to-date in 2025 for gross proceeds of $29.1 million to boost liquidity.

Office Properties Income Trust's Strategic Advantages

OPI's market success, or rather its ability to navigate the current challenging office environment, rests on a few key structural advantages. The office market is tough, but OPI has a specific playbook.

The most significant advantage is its tenancy quality. Having nearly 59% of its revenue tied to investment-grade tenants provides a much-needed buffer against widespread default risk, especially in an environment where many tenants are re-evaluating their office space needs. The U.S. Government being the largest tenant at 17.1% of annualized revenue offers exceptional credit stability, even if the leasing process can be slow.

Also, the long-standing management relationship with The RMR Group, which oversees approximately $39 billion in assets under management as of September 30, 2025, provides deep institutional real estate expertise and operational scale. This external management structure ensures consistent operations, even during the current financial restructuring. Exploring Office Properties Income Trust (OPI) Investor Profile: Who's Buying and Why?

• Credit stability: High concentration of investment-grade and government tenants reduces credit risk.
• Operational expertise: Access to The RMR Group's extensive, decades-long real estate management platform.
• Geographic diversification: Properties spread across 29 states and D.C. mitigates local market downturns.

Office Properties Income Trust (OPI) How It Makes Money

Office Properties Income Trust (OPI) primarily makes money by owning, operating, and leasing a portfolio of office properties across the United States, collecting rental income from tenants under long-term leases.

The core of their business model, as a real estate investment trust (REIT), is to generate consistent cash flow from these rental agreements, which is then measured by Funds From Operations (FFO), the REIT equivalent of earnings.

Office Properties Income Trust's Revenue Breakdown

OPI's total annualized revenue for the second quarter of 2025 was approximately $398 million, a significant decline of 18% year-over-year due to persistent leasing challenges in the office sector.

The revenue is heavily concentrated in high-quality tenants, but the overall trend is one of contraction, reflecting the broader market headwinds. Here's the breakdown based on Q2 2025 data:

Here's the quick math: As of June 30, 2025, approximately 59% of OPI's revenues came from investment-grade rated tenants or their subsidiaries, which are generally considered lower-risk. The U.S. government is their largest single tenant, representing 17.1% of annualized revenue. The remaining 23.9% (100% minus 59% minus the 17.1% that is part of the 59% is incorrect, the 17.1% is a subset of the 59%) is derived from non-investment grade tenants and other minor income sources, which is the most volatile part of the portfolio in the current climate. The overall trend is defintely decreasing, with same-property cash basis net operating income (NOI) expected to drop another 7% to 9% in Q3 2025.

Business Economics

The economic engine of OPI relies on securing long-term, non-cancellable leases, a strategy designed to provide predictable cash flow, which is crucial for a REIT. The weighted average remaining lease term was 6.8 years as of June 30, 2025, which provides some near-term stability.

The pricing strategy focuses on contractual rent escalations built into these long-term agreements, plus securing higher rental rates on renewals. For example, in Q2 2025, OPI executed 15 leases totaling 416,000 square feet at rental rates that were 6.4% higher than the prior rates for the same space.

What this estimate hides is the high cost of maintaining occupancy in a challenging office market. The company is spending significant capital expenditures (CapEx) on tenant improvements and leasing commissions, with approximately $43 million projected for the second half of 2025 alone. This spending is necessary to secure renewals and new tenants, but it eats directly into cash flow. You can learn more about the investor base in Exploring Office Properties Income Trust (OPI) Investor Profile: Who's Buying and Why?

• Generate revenue from long-term leases, primarily with high-credit tenants.
• Mitigate risk with 59% of revenue from investment-grade rated entities.
• Face severe liquidity challenges due to high debt and persistent office vacancies.

Office Properties Income Trust's Financial Performance

The financial health of Office Properties Income Trust as of mid-2025 shows a company grappling with significant debt maturities and a difficult operating environment. The key metrics reflect the stress in the office real estate sector.

• Normalized FFO (Q2 2025): The company reported a normalized Funds From Operations (FFO) of only $9.4 million, or $0.13 per share. This is the most critical measure of a REIT's operating performance.
• Net Loss (Q2 2025): OPI posted a substantial net loss of $41.2 million, or $0.58 per share, a stark reversal from the prior year.
• Liquidity Position: Total liquidity was constrained at only $90 million in cash as of July 31, 2025. This limited cash position is a major concern given upcoming obligations.
• Debt Headwinds: The company faces nearly $280 million in debt principal payments coming due in 2026, with limited capacity for refinancing due to tight debt covenants.
• Cash Flow Outlook: Management projects cash from operations to be a use of $45 million to $55 million during the remainder of 2025, including capital expenditures, indicating negative cash flow for the second half of the year.

Given the liquidity constraints and debt maturities, OPI has already suspended its quarterly dividend to conserve approximately $3.0 million in cash annually, and is actively exploring options to address its financial commitments, including a restructuring support agreement. That's a clear signal of serious financial distress.

Office Properties Income Trust (OPI) Market Position & Future Outlook

Office Properties Income Trust's (OPI) market position as of late 2025 is defined by a critical financial restructuring, following its voluntary Chapter 11 filing on October 30, 2025. The company's future outlook hinges entirely on successfully implementing its Restructuring Support Agreement (RSA), which aims to reduce debt and stabilize its balance sheet in a deeply challenging office real estate market.

The company is currently a micro-cap entity with a highly volatile market capitalization, recently cited near $14.79 million, placing it at the extreme low end of the publicly traded office REIT sector.

Competitive Landscape

To be defintely clear, OPI's market share is negligible when compared to the largest publicly traded office REITs. Here's the quick math using market capitalization as a proxy for industry size-it shows just how small OPI is now.

Opportunities & Challenges

OPI's strategic path is a survival plan, not a growth one, focused on debt reduction and asset stabilization. The core opportunity is emerging from Chapter 11 with a viable capital structure.

Industry Position

OPI's industry standing is precarious, defined by its current restructuring process. The company has essentially ceded its competitive position to focus on financial triage.

• Focus Shift: The primary strategic initiative is the legal and financial restructuring via the RSA, which supersedes all normal operational growth plans.

• Asset Disposition: The company is actively selling properties to generate liquidity, having sold four properties for $29.1 million since January 2025. This shrinks the portfolio of 17.3 million square feet to preserve cash.

• Operational Headwinds: The office sector's persistent leasing challenges are reflected in OPI's Q3 2025 guidance, which projected a 7% to 9% decrease in same property cash basis Net Operating Income (NOI).

• Tenant Quality as a Lifeline: The one clear strength is the high percentage of revenue from credit-worthy tenants, including the U.S. Government as the largest tenant, representing 17.1% of annualized rental income. This quality is the foundation for the post-restructuring business model.

To understand the long-term vision guiding this restructuring, you should review the Mission Statement, Vision, & Core Values of Office Properties Income Trust (OPI).