NEWTON, Massachusetts – (BUSINESS WIRE) – Office Properties Income Trust (Nasdaq: OPI) announced today that it has acquired a Class A liquid office building totaling 150,000 square feet on 16 acres located in Fort Mill, SC for $ 35.1 million, excluding closing costs. The property has been 100% leased for more than 10 years and serves as corporate headquarters for RoundPoint Mortgage Servicing Corp., a wholly owned subsidiary of Freedom Mortgage Company, one of the country’s largest full-service mortgage companies and a leader in Veterans Affairs and government – insured loans. The property was built in 2019 and is located along I-77 in what is considered a suburb of Charlotte, NC.
David Blackman, president and CEO of OPI, made the following statement:
“We are pleased to announce an acquisition that demonstrates the strategy behind our capital recycling program. Year-to-date, we have generated approximately $ 110 million in revenue from asset sales and are recycling a portion of that capital into a property that we believe will generate a higher cash return after the investment than the properties sold. The acquisition of this newly built, Class A property, from a single, long-term rented tenant in a growing market, is indicative of our main investment criteria. We remain committed to continuing the execution of our capital recycling program as we move forward to 2021. ”
The Office Properties Income Trust is a real estate investment fund, or REIT, focused on the ownership, operation and lease of buildings rented primarily to individual tenants and those with high credit quality characteristics, such as government entities. OPI is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company based in Newton, MA.
Forward-looking statements notice
This press release contains statements that constitute forward-looking statements in accordance with the meaning of the Private Securities Litigation Reform Act 1995 and other securities laws. In addition, whenever OPI uses words such as “believes”, “expects”, “anticipates”, “intends”, “plans”, “estimates”, “will”, “may” and negatives or derivatives of these or similar expressions, OPI is making forward-looking statements. These forward-looking statements are based on OPI’s current intentions, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained or implied in OPI’s forward-looking statements as a result of several factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond OPI’s control. For example:
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Mr. Blackman states that OPI believes that the acquired property will generate higher cash returns than the assets that OPI sold during 2020. However, this property may not generate the expected returns.
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Mr. Blackman says that OPI remains committed to continuing the execution of its capital recycling program in 2021. However, OPI cannot be sure that it will sell any properties it identifies for sale or what the terms of any sales, nor that it will acquire replacement properties that improve the quality of its assets or its ability to increase its distribution to shareholders.
The information contained in the OPI filings with the SEC, including “Risk Factors” in OPI’s periodic reports, or incorporated into them, identifies other important factors that could cause actual OPI results to differ materially from those stated or implied in the prospective statements of OPI. OPI’s filings with the SEC are available on the SEC’s website at www.sec.gov.
You must not place undue reliance on forward-looking statements.
Except as required by law, OPI does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on Nasdaq.
No shareholder, director or administrator is personally responsible for any act or obligation of the Trust.