Office Properties Income Trust filed a voluntary Chapter 11 petition in the Southern District of Texas on October 30, 2025, after a period of declining revenue and rising debt obligations.
The filing follows a Restructuring Support Agreement with holders of its September 2029 senior secured notes, which equitizes roughly $1 billion of debt and reduces the REIT’s leverage.
Under the agreement, OPI received a $125 million debtor‑in‑possession financing commitment from the September 2029 Ad Hoc Group, to be syndicated to other noteholders. The liquidity will support ongoing operations while the company restructures its capital structure.
OPI’s Q2 2025 revenue was $114.5 million, down 18% year‑over‑year, and normalized FFO was $9.4 million ($0.13 per share). The company suspended its dividend in Q2 to conserve cash, and its debt maturities of $280 million in 2026 and additional maturities in 2027 remain a concern.
Management cited the shift to remote and hybrid work, higher interest expenses (up 37% year‑over‑year in Q2), and tenant concentration as key drivers of the liquidity crisis. The RMR Group will continue managing the REIT’s properties for an initial five‑year term.
The restructuring aims to deleverage the balance sheet, reduce future debt‑service obligations, and position OPI for a more stable future amid industry pressures from declining office demand.
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