- Office Properties Income Trust (OPI) will be delisted from the Nasdaq due to its stock trading below $1 per share.
- The company missed approximately $30M in interest payments and has notified creditors of an expected default.
- Managed by The RMR Group, the REIT’s financial distress highlights ongoing pressures in the office sector, especially among publicly traded office landlords.
Delisting Confirmed
OPI disclosed this week that it will be removed from the Nasdaq Stock Market, reports Bisnow. The delisting comes after the company failed to maintain the minimum $1 share price threshold. The announcement was made via financial filings submitted Tuesday.
Debt Troubles Mounting
Alongside the delisting, OPI revealed it had missed around $30M in interest payments. The company also notified its lender that it expects to be in default under its loan agreement. This marks another blow to the already struggling office-focused REIT.
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Who’s Behind It
The RMR Group, a real estate investment firm based in Massachusetts, manages OPI externally. The REIT owns a national portfolio of office assets, many of which have faced leasing and valuation challenges in the post-pandemic work environment.
Wider Context
The delisting and default risk comes amid sustained weakness in the US office market. Rising interest rates, remote work trends, and reduced tenant demand have battered office landlords, especially those with high leverage and exposure to urban markets.
What’s Next
Unless the company cures its listing deficiencies or restructures its obligations, it may face further liquidity challenges. Delisting from a major exchange like Nasdaq can also limit investor access and reduce stock liquidity, compounding financial woes.
Why It Matters
The situation underscores the precarious state of many office REITs. These firms are navigating a market that continues to shift under pressure from high vacancies, tightening credit, and evolving workplace norms.
