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Office Properties Income Trust (OPINL)

NasdaqGM - NasdaqGM Real-time price. Currency in USD
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27.76-0.13 (-0.47%)
As of 10:31AM EDT. Market open.
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  • G
    Greg Demartino
    Research RMR management the destroy the reit and then merge or sell to change the stock symbol.
  • P
    Perry
    Bullish pattern detected.
  • P
    Perry
    The next dividend announcement is coming up soon. Buy now before it’s too late.
  • K
    Keith
    If they are able to sell debt at 2.4%, it means their balance sheet looks good to the professional money people
  • P
    Perry
    Shorties are going to pay that fat dividend at the end of the month. Going higher.
  • A
    Ajay
    RMR filed a registration statement according to which OPI, HPT, and SNH will each be selling all of its stock in RMR. After the transaction, RMR will be owned entirely by public shareholders and the Adam Portnoy trust. So, this eliminates a complicating cross-ownership wrinkle. OPI will sell all of its 2.8 million shares of RMR common stock, yielding about $100 million. At OPI"s presentation during the NAREIT conference on June 4, 2019, OPI's CEO explicitly ruled out buying back stock. I imagine they will use the proceeds to pay down debt.
  • R
    Ron
    According to news and comments on SA - OPI will be selling its RMR shares - another genius move - a few months ago these 2+ million shares were valued in the $90s - now $50 - these guys will continue to amaze.
  • B
    BSNTech
    Seems like the earnings report is still causing investors to leave, like Ajay. Stocks never follow logic or 'make sense' but with the book value being around $37 a share, we're now $10 a share below that. Question is... how long will it take for this stock to turn around and get more back to book value? I just can't see taking a loss on it right now myself. Most other stocks I own are all at a premium to the book value except for XAN which had a falling out with management but it has been progressively getting better and they have increased the dividend again.
  • C
    Christopher
    Great company. Great management. The shares I bought for 18 are now worth 11.
  • B
    Brandon
    Recently updated book value: $37.16. Trading right now at $25.56?? Is the business really deteriorating that rapidly? What other factors could be in play here?
  • A
    Ajay
    The other shoe may have just dropped. OPI filed a shelf registration statement for public offering of debt, common and preferred stock, and warrants "from time to time." Selling assets (both buildings and RMR stock) to pay down debt, while getting ready to issue more debt and equity. If I didn't know any better, I would say that this looks, walks, and talks like a Ponzi scheme. And do I really know any better?
  • P
    Perry
    Bought more today almost at the low. I’ll take the 9% dividend yield if nobody else wants it.
  • A
    Ajay
    All the good news is out, and the stock is back where it was last week before the earnings report came out. It is hard to see how the earnings report and the call that followed could have been any better. Yes, the occupancy rate ticked down a little, but the CEO explained on the call that that merely reflected the higher vacancy rates in the buildings already under contract for sale. Once those sales are completed in the second quarter, he added, the occupancy rate will be comfortably into the 90% range. Unless they are cooking the books or lying through their teeth, every reason for the stock price to go up has been made public. And the only discernible reaction from analysts: Jeffries upgraded the stock from underperform to hold, and increased their price rages from $23 to $25!!!! If there are any surprises between now and the next quarter's earnings report, they can only be negative ones. I am not saying there will be bad news, all I am saying is that the good news has already been factored in. And the stock just refuses to go above $27-28. But if there is any bad news, it will quickly descend into the low $20s and perhaps even below that. I am at a loss to see how this stock gets back to even the levels we saw this January, when there was so much uncertainty about the effects of the merger.
  • B
    BSNTech
    Odd trading behavior. OPI was up yesterday after the announcement and today it hasn't found a bottom yet, even after being down 7%. I couldn't make heads or tails out of this last report especially since NONE of the SIR income was included - since the merger was not completed. The next quarterly report should give a much clearer picture since all of the income/expenses will be factored in.
  • A
    Ajay
    After an underwriting discount of $2.50, OPI will sell 2.8 million RMR shares at $37.50 a share for aggregate proceeds of $105 million. In addition, the sale entails expenses of about $1 million to be shared by all selling shareholders. So, OPI will net about $104.75 million from its RMR stake. Meanwhile, RMR stock has climbed back to the $47 level. At almost a $10 spread, that's about $25 to $28 million that rightfully belonged to OPI now in the pockets of the investment banks who "placed" the RMR stock. With friends like these, . . .
  • A
    Ajay
    As of December 31, 2018, BlackRock held 15.65 million (pre-split) shares. That's up from 9.4 million (pre-split) shares on September 30, 2018. Is BlackRock hedging, or does it actually expect an increase in share price in the near term?

    https://www.sec.gov/Archives/edgar/data/1364742/000021545719001536/us38376a1034_012819.txt
  • A
    Ajay
    Bought back for $26.00 half the shares I had sold earlier for $27.65. Will probably regret it, but hope spring eternal ;-)
  • B
    BSNTech
    Looks like the beat earnings. According to the Yahoo page, estimates were for 66 cents a share and actual was 71 cents. Glad to see that the renewals were an average of 12.8% in rent increases too. There was an uptick in the vacancy rate though - from 91.0% to 89.6%.
  • W
    William
    Looks like the only winners here are the insiders.
  • D
    DON
    Fiduciary duty connatates a boards responsibility toward shareholders. Currently the boards are basically the same for OPI as they were previously for RMR, SIR and GOV all interwound. The independent directors have impressive resumes but little experience in large complex real estate matters must surely relie on the management directors for guidance. In Oklahoma during the 1988 oil bust years many independent directors filed bankruptcy duetothe managing directors miss direction of the boards fiduciary duty. D & O policy’s always have “outs” and can be voided under certain circumstances. Two pending lawsuits have been instigated alleging shareholder issues. One filed11/12/18 by Levi & Korsinky LLP and the second filed 11/16/18 by Monteverde & Associates PC. Both law firms are very large firms with reputations for recovering large multimillion dollar settlements.