Office REIT Says There Is `Substantial Doubt` About Its Survival

Office Properties Income Trust, which owns a nearly 20M SF portfolio, says it might be forced to file for bankruptcy next year if it can`t find a way to extend or refinance $457M in maturing debt.

OPI warned investors Thursday that it there is “substantial doubt about its ability to continue as a going concern” because of its unsecured senior notes that are slated to come due on Feb. 1, according to its third-quarter earnings report.

The Newton, Massachusetts-based REIT said it is in negotiations with its lenders on a note exchange but “is not able to conclude that it is probable that the negotiations will result in an exchange that refinances such notes prior to their maturity.”

Its stock price had fallen more than 16% to $1.64 per share as of Thursday afternoon. So far this year, the REIT has lost more than 76% of its market value...

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RSK: I am sure they are not the only REIT affected by this. The US Government as well as many State Governments (Wis included) are pulling back on square footage. Many Fed and state workers can work from home and just come to an office 1 or 2 days per week, saving them a good deal of lease rent and trimming the fat in that area.