Office Properties Income Trust (OPI): Business Model Canvas [Dec-2025 Updated]

Honestly, when you look at Office Properties Income Trust (OPI) right now, you aren't seeing a typical growth story; you're seeing a company fighting for its financial life, pivoting from expansion to sheer survival. With annualized revenue around $398 million from 125 office properties, the real story isn't the square footage, but how they are managing the massive interest expense-which hit $53 million in Q2 2025-while executing a complex Chapter 11 reorganization plan. If you want to know precisely how a major real estate player stabilizes its portfolio, manages key partners like The RMR Group, and tries to keep its investment-grade tenants happy during this massive debt overhaul, you need to see the nuts and bolts of their current Business Model Canvas below.

Office Properties Income Trust (OPI) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Office Properties Income Trust (OPI) relies on, especially now, post-Chapter 11 filing on October 30, 2025.

The RMR Group: External manager for property and business operations

The RMR Group LLC continues to manage Office Properties Income Trust (OPI) business operations throughout the court-supervised process. The Restructuring Support Agreement (RSA) contemplates new management agreements effective upon plan confirmation. As of September 30, 2025, The RMR Group reported $39.0 billion in Assets Under Management. The new agreements are set for an initial term of five years.

The fee structure under the new business management agreement is defined:

Honestly, this structure locks in a predictable, albeit reduced, revenue stream for The RMR Group from OPI for the near term.

Senior Secured Noteholders: Partners in the Chapter 11 restructuring via RSA

The RSA, entered into on October 30, 2025, is the cornerstone of the debt restructuring. This agreement is with an ad hoc group representing approximately 80% of the September 2029 Notes.

• Equitization of approximately $1 billion of existing notes into reorganized equity valued at $98 million.
• Supporting noteholders will receive up to $420 million of secured exit notes.
• The 2027 secured notes will be satisfied through a combination of collateral, cash, or take-back debt.

The goal is a substantially deleveraged balance sheet, reducing total debt from approximately $2.5 billion to about $1.3 billion post-emergence.

Debtor-in-Possession (DIP) Lenders: Providing $125 million in new financing

The DIP financing commitment secured from members of the supporting noteholder group totals $125.0 million in new money to fund operations during Chapter 11. An initial tranche of $10.0 million became available after the interim order on November 6, 2025. The DIP loans carry a high cost of capital.

The financial commitment includes several components:

• Annual Cash Interest Rate: 12.00%.
• Upfront Fee: 2.25% of commitments, payable in cash or common equity at a 37% discount to plan equity value.
• Anchor Commitment Fee: 10.00% of commitments.
• Exit Fee: 5.75% of the DIP Loans.

A key feature is that the entire $125 million facility can be equitized into common equity at OPI's sole discretion upon emergence.

Third-party Brokers: Facilitating leasing and asset disposition activities

Office Properties Income Trust expects to continue honoring its agreements with brokers in the ordinary course. Leasing activity in the second quarter of 2025 showed some execution, though challenges persist. You should note the following transactional data from mid-2025:

• Q2 2025 executed leases: 15 leases covering 416,000 square feet.
• Q2 2025 weighted average remaining lease term on new leases: 5.4 years.
• Property disposition in July 2025: One property sold for $2.2 million.
• Properties under agreement to sell for $28.9 million as of the Q2 2025 call.

Finance: draft 13-week cash view by Friday.

Office Properties Income Trust (OPI) - Canvas Business Model: Key Activities

You're managing a real estate portfolio under intense financial pressure, so your key activities right now are laser-focused on survival and restructuring. Office Properties Income Trust (OPI) is actively engaged in several critical, high-stakes operations as of late 2025.

The foundational activity remains the day-to-day management of the physical assets. As of June 30, 2025, this involved managing and maintaining 125 office properties across the U.S., totaling 17.3 million square feet. A significant portion of the revenue stream is tied to credit quality, with approximately 59% of revenues coming from investment-grade rated tenants or their subsidiaries. The U.S. government remains the single largest tenant, representing 17.1% of annualized revenue.

The most defining activity is the execution of the Chapter 11 debt reorganization plan. Office Properties Income Trust filed for bankruptcy protection on October 30, 2025. This process is underpinned by a Restructuring Support Agreement (RSA) with noteholders. The goal is substantial deleveraging, aiming to reduce total funded debt from approximately $2.421 billion down to about $1.3 billion. To fund operations during this period, the company sought a $125 million debtor-in-possession (DIP) financing facility, which notably includes a feature allowing the entire amount to be converted to equity upon emergence.

Leasing and contract management is a continuous, crucial activity, especially given the sector headwinds. Here's a quick look at the scale and recent activity as of the Q2 2025 reporting period:

Disposing of non-core assets is a key activity aimed directly at generating immediate liquidity and reducing carrying costs associated with vacant space. In July 2025, Office Properties Income Trust completed the sale of one property for $2.2 million excluding closing costs. At the end of Q2 2025, there were three properties classified as held for sale with a combined carrying value of $8 million. Furthermore, the company had three properties under agreement to sell for an aggregate price of $28.9 million. Two of those sales were expected to close in September 2025 for $10.7 million.

Finally, capital deployment is tightly managed, balancing necessary tenant improvements with liquidity preservation. Total capital expenditures year-to-date through Q2 2025 reached nearly $28 million. For the second half of 2025, the plan anticipated approximately $43 million in total CapEx. This planned investment is broken down into specific buckets:

• Building capital: $10 million
• Leasing capital: $33 million

This focus on leasing capital is intended to secure renewals and attract new tenants to stabilize the revenue base. Finance: draft 13-week cash view by Friday.

Office Properties Income Trust (OPI) - Canvas Business Model: Key Resources

You're looking at the core assets Office Properties Income Trust (OPI) relies on to operate its business, especially now, heading into late 2025. These are the tangible and intangible things that make the business run, and frankly, they are heavily weighted toward real estate holdings and management expertise.

The physical foundation of Office Properties Income Trust (OPI) is its real estate portfolio. As of June 30, 2025, this portfolio consisted of exactly 125 office properties. These assets are spread across 29 states and the District of Columbia. The total rentable space across these buildings amounts to approximately 17.3 million square feet.

A key resource supporting the revenue base is the structure of the existing tenant commitments. The portfolio has a weighted average remaining lease term of 6.8 years as of the second quarter of 2025. This term length provides a degree of revenue visibility, though the overall office sector presents leasing challenges.

The quality of the tenant base is another critical resource. As of June 30, 2025, Office Properties Income Trust (OPI) derived approximately 59% of its revenues from tenants rated as investment grade or their subsidiaries. To put that in perspective, the single largest tenant, the U.S. government, accounts for 17.1% of the annualized revenue.

Here's a quick look at the portfolio and financial snapshot from the Q2 2025 reporting period:

The management platform is an essential intangible resource. Office Properties Income Trust (OPI) is managed by The RMR Group (Nasdaq: RMR). This relationship is cemented by a Restructuring Support Agreement (RSA) that contemplates a new management arrangement for an initial term of 5 years. Under this new structure, The RMR Group LLC is set to receive an annual fee of $14 million for the first two years of the new agreement.

For context on The RMR Group's scale, as of June 30, 2025, the firm managed approximately $40 billion in assets under management (AUM). This platform provides the expertise for buying, selling, financing, and operating commercial real estate.

Finally, liquidity is a necessary resource, especially given the company's recent financial restructuring filings. As of the end of Q2 2025, Office Properties Income Trust (OPI) reported total liquidity of $90.1 million in cash. This cash position is being managed carefully, especially since the company suspended its quarterly dividend to preserve cash, which is expected to retain approximately $3 million annually.

You should note the projected cash use: Office Properties Income Trust (OPI) was projecting cash from operations to be a use of $45 million to $55 million for the remainder of 2025, which includes capital expenditures.

• Capital Expenditures (H2 2025 forecast): Approximately $43 million total.
• Building Capital (H2 2025 forecast): $10 million.
• Leasing Capital (H2 2025 forecast): $33 million.
• Debt Principal Payments Due in 2026: Nearly $280 million.

Finance: draft 13-week cash view by Friday.

Office Properties Income Trust (OPI) - Canvas Business Model: Value Propositions

You're looking at the core promises Office Properties Income Trust (OPI) makes to its stakeholders as of late 2025, especially in light of the recent restructuring efforts. These value propositions focus on tenant quality, operational excellence, and balance sheet repair.

Stable, long-term occupancy for credit-worthy tenants like the U.S. government

OPI's value proposition centers on leasing to tenants with strong financial standing. As of June 30, 2025, approximately 59% of Office Properties Income Trust's revenues came from investment grade rated tenants or their subsidiaries. The U.S. Government stands out as the single largest tenant, representing about 17.1% of annualized rental income as of that date. Overall, government entities contribute roughly one-quarter of Office Properties Income Trust's total rent base. The weighted average remaining lease term across the portfolio was approximately 6.8 years as of June 30, 2025, suggesting a degree of near-term revenue stability, even as overall portfolio occupancy had declined to roughly 77.5% by the Chapter 11 filing date in October 2025.

Energy Star-rated, well-managed properties for sustainability-focused tenants

Office Properties Income Trust emphasizes property quality and management efficiency, which appeals to tenants concerned with environmental standards. The company was named an Energy Star® Partner of the Year for the seventh consecutive year in 2024. This commitment to energy efficiency is a tangible benefit offered to tenants.

Debt equitization and reduced debt service for noteholders via the RSA

Following the October 30, 2025, Restructuring Support Agreement (RSA), a primary value proposition for noteholders is significant balance sheet deleveraging and reduced future interest burden. The transactions under the RSA are designed to reduce Office Properties Income Trust's leverage by more than four turns, moving from 9.6x pre-petition to a pro forma 5.2x. This is largely achieved through the equitization of approximately $1 billion of existing notes. Specifically, the September 2029 secured noteholders who negotiated the RSA are set to receive $420 million of take-back debt structured as new five-year 10% secured notes, plus around 26% of reorganized equity for their notes. Furthermore, all $491 million of prepetition unsecured debt is slated to be equitized. The company also secured a commitment for up to $125 million in new money, debtor-in-possession (DIP) financing to support operations during the court-supervised process.

Diversified geographic footprint across major U.S. markets

Office Properties Income Trust's portfolio is spread across the country, which mitigates risk concentrated in any single local market. You can see the scale of this diversification below:

The portfolio includes a mix of tenants, with other significant names like Alphabet (Google), Bank of America, Shook Hardy & Bacon, and Northrop Grumman each contributing between 2% and 6% of annual rent. This mix helps distribute the risk away from over-reliance on the single largest tenant.

Office Properties Income Trust (OPI) - Canvas Business Model: Customer Relationships

You're looking at how Office Properties Income Trust (OPI) keeps its tenants locked in, which is crucial given the sector headwinds we've seen through 2025. The relationship strategy centers on long-term contracts and high-quality tenants, though recent events show some strain.

Direct, dedicated relationship management for large, single-tenant leases

For your biggest customers, OPI definitely uses a direct management approach. The U.S. government stands out as the largest single tenant, providing 17.1% of annualized rental income as of June 30, 2025. Keeping that relationship stable is paramount, especially when the company is navigating a restructuring process that began in late 2025. Furthermore, a significant portion of the revenue base is considered high-quality; approximately 59% of revenues come from investment-grade rated tenants or their subsidiaries as of June 30, 2025.

Contractual, long-term lease agreements with minimal turnover effort

The core of the relationship is the contract, designed for stability. As of mid-2025, the portfolio boasted a weighted average remaining lease term (WALT) of 6.8 years. This long-term commitment minimizes the constant effort of finding new tenants, though the current market makes renewals tough. For instance, leases set to expire through 2026 represent $30 million, or 7.6%, of annualized rental income, and the majority of these are single-tenant properties. Management projected that 742,000 square feet of that expiring space, equating to $11.2 million in annualized revenue, would not renew. Still, new leasing activity in Q2 2025 saw a WALT of 5.4 years on executed leases.

Here's a quick look at the tenant and lease metrics as of the second quarter of 2025:

Professional property management services provided by The RMR Group

Office Properties Income Trust (OPI) doesn't have its own executive team; it pays The RMR Group (RMR) to run the day-to-day. RMR is a major player, managing approximately $39 billion in assets under management (AUM) as of September 30, 2025. Even with OPI filing for Chapter 11 bankruptcy in late 2025, the plan was to keep RMR in place. The proposed new property management agreement under the Restructuring Support Agreement (RSA) outlines a 3% property management fee and a 5% construction supervision fee.

Focus on tenant retention to maintain the 85.2% occupancy rate

The focus is definitely on keeping the existing base, aiming to hold that 85.2% same-property occupancy rate achieved as of June 30, 2025. Management noted that renewals accounted for two-thirds of leasing activity in Q2 2025. This retention focus is a direct response to market pressures, including remote work trends that have led to negative net absorption. To help manage cash flow amid these challenges, OPI suspended its quarterly dividend in July 2025, which preserves approximately $3 million of cash annually.

• Leasing pipeline totaled 2 million square feet as of Q2 2025.
• Over 60% of the leasing pipeline is from renewal discussions.
• The U.S. Government is the largest tenant at 17.1% of annualized revenue.
• Leasing capital budgeted for the second half of 2025 is $33 million.

Finance: draft 13-week cash view by Friday.

Office Properties Income Trust (OPI) - Canvas Business Model: Channels

You're looking at how Office Properties Income Trust (OPI) gets its value proposition-office space leased to creditworthy tenants-out to the market, especially now that the company is operating under a court-supervised process following its Chapter 11 filing on October 30, 2025. The channels for leasing and capital markets access have shifted, but the core operational structure remains tied to its manager.

Direct Leasing and Sales Teams Managed by The RMR Group

The day-to-day management and leasing of the portfolio continue to be handled by The RMR Group, which is a key part of the operational channel, even post-restructuring filing. The Restructuring Support Agreement (RSA) contemplates a new management arrangement with RMR for an initial term of five years. This ensures continuity in tenant interaction and property maintenance.

The RMR Group, as of September 30, 2025, managed approximately $39 billion in assets. For the second half of 2025, OPI anticipated investing approximately $43 million in total capital expenditures, with $33 million specifically earmarked for leasing capital. That's a significant allocation aimed directly at retaining and attracting tenants through these channels.

Commercial Real Estate Brokers for New Tenant Sourcing and Renewals

Brokers remain a vital channel for securing new occupancy and locking in existing tenants. The leasing activity in the second quarter of 2025 saw the execution of 15 leases covering 416,000 square feet. Honestly, the reliance on renewals is high; they accounted for two-thirds of that Q2 2025 leasing volume.

You need to watch the expirations closely, as they drive broker activity. Lease expirations through 2026 total 1.3 million square feet, which represents $30 million, or 7.6%, of OPI's annualized rental income. The pipeline for new deals is active, totaling 2 million square feet as of the Q1 2025 update, with over 60% of that tied up in renewal discussions.

The quality of the tenant base is central to this channel's success. As of June 30, 2025, approximately 59% of OPI's revenues came from investment-grade rated tenants or their subsidiaries. The largest single tenant, the U.S. government, accounts for 17.1% of annualized revenue.

Here's a quick look at the portfolio OPI is marketing through these channels as of June 30, 2025:

Corporate Website and Investor Relations for Capital Markets Access (now OTCPK)

For capital markets access, the channel has clearly shifted following the October 2025 restructuring. OPI's shares are now listed on the OTCPK under the ticker symbol OPITQ. The corporate website, $\text{www.opireit.com}$, remains a primary source for general company information, though investor relations now directs stakeholders to the restructuring portal for case-specific details.

The company's liquidity position is a key metric communicated through this channel. As of June 30, 2025, total liquidity stood at $90 million of cash. The restructuring process itself is being supported by a commitment for $125 million in new money, debtor-in-possession (DIP) financing.

You can find the Investor Relations contact listed as:

• Kevin Barry, Senior Director, Investor Relations
• Direct line: (617) 219-1410

Kroll Restructuring Administration for Chapter 11 Communications

For all matters related to the Chapter 11 proceedings initiated on October 30, 2025, Kroll Restructuring Administration LLC serves as the claims, noticing, and solicitation agent. This is the official, court-supervised channel for creditors and other interested parties.

The restructuring aims to substantially deleverage the balance sheet, including the equitization of approximately $1 billion of existing notes. The key communication touchpoint for creditors is the dedicated website, $\text{https://restructuring.ra.kroll.com/OPI}$.

Key dates and figures related to this channel include:

• Chapter 11 Filing Date: October 30, 2025
• DIP Financing Commitment: $125 million
• Next Creditors Meeting (Section 341): January 7, 2026, at 2:00 p.m. (CT)

Finance: draft 13-week cash view by Friday.

Office Properties Income Trust (OPI) - Canvas Business Model: Customer Segments

You're analyzing Office Properties Income Trust (OPI) right now, and the customer segment is where the story of stability versus sector-wide distress really plays out. The core of Office Properties Income Trust (OPI)'s business model is built around securing tenants with the highest possible credit quality, which is a crucial differentiator, especially given the company's late 2025 restructuring efforts.

The tenant base is heavily weighted toward creditworthy entities, which is the primary defense mechanism for Office Properties Income Trust (OPI)'s revenue stream. As of June 30, 2025, a substantial 59% of Office Properties Income Trust (OPI)'s revenues came from investment-grade rated tenants or their subsidiaries. To be fair, this focus on quality is what management has always leaned on, but the current environment makes that stability even more valuable.

Here's a quick look at the revenue concentration based on the latest figures available:

The U.S. Government stands out as the single largest customer anchor for Office Properties Income Trust (OPI). This relationship is key, representing 17.1% of the annualized rental income as of June 30, 2025. That kind of anchor tenant provides a level of predictability that many other office REITs simply don't have right now.

Office Properties Income Trust (OPI) has historically targeted large, single-tenant users who sign on for long-term, stable leases. This strategy is evident in the portfolio metrics; as of June 30, 2025, the portfolio consisted of 125 properties totaling 17.3 million square feet, with a weighted average remaining lease term of 6.8 years. Still, you have to watch the near-term expirations; leases scheduled to expire through December 2025 accounted for 11.7% of revenue.

The current reality for Office Properties Income Trust (OPI) is that the customer segment focus has shifted, at least temporarily, to the capital structure stakeholders. Due to the Chapter 11 filing on October 30, 2025, the immediate customer base includes:

• Institutional investors and noteholders who are part of the Restructuring Support Agreement (RSA).
• Holders of the senior secured notes due September 2029, who committed to up to $125 million in debtor-in-possession financing.
• Creditors whose existing notes, totaling approximately $1 billion, are expected to be equitized into new ownership.

The entire restructuring process is designed to deleverage the balance sheet, which has $2.37 Billion in total debt as of June 2025, by converting debt held by these institutional noteholders into equity. Finance: draft the projected post-restructuring equity capitalization table by next Tuesday.

Office Properties Income Trust (OPI) - Canvas Business Model: Cost Structure

You're looking at the core expenses for Office Properties Income Trust (OPI) as it navigates the post-restructuring environment of late 2025. The cost structure is heavily influenced by debt service and the necessary expenses to maintain and improve the portfolio while operating under Chapter 11 protection.

Interest Expense remains a major component, reflecting the high leverage that precipitated the recent filing. For the second quarter of 2025, the reported interest expense was $53 million. This figure was up 37% year-over-year. Even with the restructuring plan aiming to reduce debt, the immediate cost of capital remains high, especially considering the new Debtor-in-Possession (DIP) financing carries a 12.00% annual cash interest rate.

The costs associated with running the properties-Property Operating Expenses-are putting pressure on Net Operating Income (NOI). While we don't have the exact dollar amount for utilities, maintenance, and taxes, the trend is clear: same-property cash-basis NOI margin contracted year-over-year in Q2 2025, moving from 61.0% down to 57.4%. This contraction signals that operating costs are rising faster than the achievable rental income on existing leases.

The external relationship with The RMR Group LLC dictates a significant, fixed administrative cost. Post-restructuring, the new business management agreement sets the External Management Fees. RMR Group LLC will receive an annual fee of $14.0 million per year for the first two years under the new agreement, which is expected to become effective upon plan confirmation. This is in addition to the property management fee of 3% and a construction supervision fee of 5%.

To keep the physical assets viable, Capital Expenditures are budgeted for the remainder of 2025. Office Properties Income Trust projects capital expenditures of $43 million for the second half of 2025. This $43 million is comprised of $10 million for building capital and $33 million for leasing capital.

The Chapter 11 filing itself introduced substantial, one-time Restructuring and Advisory Costs, primarily embedded within the DIP financing structure. You need to account for these high fees when modeling the immediate cash burn.

Here's a quick look at the key, hard numbers driving the Cost Structure as of late 2025:

The advisory team retained for the Chapter 11 process also represents a significant, though variable, cost. The debtors retained several key firms:

• Hunton Andrews Kurth and Latham & Watkins as bankruptcy co-counsel.
• Moelis & Company as investment banker.
• AlixPartners LLP as financial advisor.

The overall debt service burden is also highlighted by the upcoming maturities that necessitated the filing; Office Properties Income Trust had $279.5 million maturing next year (2026) and $771.3 million due in 2027, according to the Q2 report. The restructuring aims to equitize approximately $1 billion of existing notes.

Office Properties Income Trust (OPI) - Canvas Business Model: Revenue Streams

You're looking at the core income generation for Office Properties Income Trust (OPI) as of late 2025, which is heavily anchored in real estate leasing but supplemented by transactional activities in a challenging market.

The primary revenue driver is rental income from office property leases. As reported for the second quarter of 2025, the annualized revenue figure stands at $398 million, representing a significant year-over-year decline of nearly 18%, or $85 million compared to the prior year. The actual rental income reported for the second quarter of 2025 was $114.5 million, down from $123.7 million year-over-year.

This annualized revenue of $398 million is calculated using the annualized contractual base rents as of June 30, 2025, plus straight line rent adjustments and estimated recurring expense reimbursements to be paid to Office Properties Income Trust. The quality of the tenant base supporting this stream is notable; as of June 30, 2025, 59% of revenues came from investment-grade rated tenants or their subsidiaries. The U.S. government remains the largest single tenant, accounting for 17.1% of annualized revenue.

Transactional activities contribute to the revenue stream, though they are less predictable. This includes proceeds from asset dispositions. Office Properties Income Trust currently expects to sell two properties in September 2025 for an aggregate of $10.7 million, excluding closing costs, as part of a larger agreement to sell three properties for $28.9 million. Earlier in July 2025, the company sold one property for a sales price of $2.2 million, excluding closing costs.

Another, explicitly non-recurring, source of income is lease termination fees, though no specific financial amount for this stream was detailed in the latest available reports.

Here's a quick look at the key revenue-related metrics as of mid-2025:

The pressure on this revenue stream is clear when you look at upcoming lease expirations. You should note that 1.3 million square feet of leases are scheduled to expire through 2026, representing $30 million, or 7.6%, of the current annualized rental income.

The company is actively managing its asset base to generate cash, which is a key component of its short-term financial strategy given the liquidity constraints. The revenue streams are further characterized by:

• Rental income from office property leases.
• Tenant reimbursements for property operating expenses (included in annualized revenue).
• Proceeds from asset dispositions, such as the $10.7 million expected in September 2025.
• Lease termination fees (a non-recurring source).

The trailing twelve months revenue as of mid-2025 was approximately $0.46 Billion USD.