Office Properties Income Trust/md — Business Overview
What does OPI do?
Office Properties Income Trust (OPI) is a REIT that owns and leases office buildings across the United States. A REIT (Real Estate Investment Trust) is a company that owns income-producing real estate and is required to distribute at least 90% of its taxable income to shareholders. As of December 31, 2025, OPI owned 122 properties totaling approximately 17.1 million rentable square feet, with a depreciated carrying value of roughly $2.9 billion. The portfolio is leased to 212 tenants, with a weighted average remaining lease term of about 6.6 years. The U.S. government is OPI's single largest tenant, representing approximately 17.2% of annualized rental income.
OPI is currently operating under Chapter 11 bankruptcy protection. On October 30, 2025, OPI and certain subsidiaries voluntarily filed for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. A reorganization plan was confirmed by the court on April 22, 2026, and if it becomes effective, it would reduce OPI's outstanding debt by approximately $700 million and cancel existing common shares entirely — meaning current shareholders would receive nothing. The company's shares were already delisted from Nasdaq on October 6, 2025.
How does OPI make money?
OPI's revenue comes almost entirely from collecting rent on its office properties. Tenants sign leases and pay contractual base rent, plus reimbursements for certain operating expenses. OPI's leases span government agencies, corporations, and other organizations. The U.S. government alone accounts for 17.2% of annualized rental income, making it a significant single source of cash flow.
OPI has no employees of its own — it outsources all management functions to an external manager called The RMR Group LLC (RMR). RMR handles day-to-day operations, leasing, acquisitions, and property management in exchange for management fees. This structure is common among REITs but means OPI's operating costs include ongoing fees paid to a related-party manager rather than a direct internal workforce. RMR had nearly 900 full-time employees as of year-end 2025 supporting OPI and other clients.
What market does OPI operate in?
OPI operates in the U.S. commercial office real estate market, which is under significant structural pressure. The filing explicitly acknowledges headwinds from increased remote work, tenants consolidating their office footprints, declining rents, and rising costs to re-lease vacant space. Higher interest rates, inflationary pressures, and potential reductions in U.S. federal government office leases add further uncertainty.
The office sector has struggled to attract capital, and OPI's own situation reflects broader market stress. Deteriorating office fundamentals and negative market sentiment have restricted OPI's access to capital and weighed on property values. The company notes it does not yet know the full long-term impact of these trends on its portfolio, and the duration of the headwinds remains uncertain. These are secular (long-term structural) shifts, not just a temporary cycle.
Who are OPI's main competitors?
The office REIT and commercial real estate space is highly competitive and fragmented. OPI competes against other publicly traded REITs, private REITs, financial institutions, and both domestic and foreign private investors. The company acknowledges that some competitors have greater financial resources or lower costs of capital, which is a meaningful disadvantage — especially while OPI is in bankruptcy and has severely limited access to new financing.
OPI claims a few potential competitive advantages, though their current applicability is uncertain given the bankruptcy. These include the experience of its manager RMR, the quality of its properties, the credit quality of its tenant base (anchored by U.S. government leases), and the structure of its leases. OPI also highlights sustainability credentials — as of year-end 2025, 47 properties (43.5% of the total) held LEED (Leadership in Energy and Environmental Design) designations, and 33 properties were ENERGY STAR certified. These certifications matter because U.S. government tenants, OPI's largest customer group, can require or prefer them when selecting or renewing leases. OPI does not claim a dominant position in any single geographic market.
Where does OPI operate?
OPI operates exclusively in the United States, with properties spread across central business district, urban infill, and suburban locations. The filing describes a strategy of targeting "select, growth-oriented U.S. markets" with high barriers to entry, though specific city-by-city revenue breakdowns are not provided in this section. OPI both owns and directly leases its properties; it does not manufacture anything.
OPI has a small joint venture interest in addition to its wholly owned portfolio. It holds a 51% stake in an unconsolidated joint venture owning two properties with approximately 0.3 million square feet. Beyond this, all operations and assets are domestic. There is no meaningful international exposure described in the filing.
One notable geographic concentration risk is OPI's dependence on U.S. federal government tenants. The filing flags that potential reductions in federal office leases — for example, through government downsizing initiatives — could directly reduce rental income. Since the U.S. government is the single largest tenant at 17.2% of annualized rental income, any policy-driven pullback in federal office use would have an outsized impact on OPI's cash flows.