Office Properties Income Trust (NASDAQ:OPI) Q4 2023 Earnings Call Transcript

Yael Duffy: So I mean, I think the good news, of the 1.9 million square feet that we know is going to vacate, it is pretty equal across each quarter. So I don’t — it’s around 400,000, give or take, each quarter. So that’s about, assuming we don’t do any other new leasing, which I don’t anticipate, it would be about somewhere around 2% a quarter of decline in occupancy. But again, as I mentioned, we are — several of the properties that are on the known vacate list are also properties we’re considering for disposition. So if we’re able to exercise on those dispositions, then our occupancy will obviously be better.

Ronald Kamdem: Got it. And then just sort of on the Moelis hire, as you guys have obviously been contemplating sort of this maturity schedule, was there ever an opportunity to just refinance everything in 2024 and 2025? Just curious if that — there was ever a scenario where you could take care of the 2024 and 2025 at the same time. And if not, what’s sort of the thinking in Moelis and what sort of value kind of strategies would they explore? Thanks.

Brian Donley: It’s a great question. And to answer the first part of the question, yes, we did contemplate a much bigger deal to take out the 2024s and 2025s. We were evaluating whether that could have been similar execution in the secured senior note market. So we had to look at our options on the table as far as getting a revolver, which gives us liquidity and more flexibility. And that’s where we ended up leading on doing the revolver versus not doing the revolver, potentially doing a bigger bond deal. Those are sort of the two biggest things in front of us. We’re also looking at individual asset, mortgage financing, the CMBS market, cooling properties. So we’ve been looking at a lot of different options. And Moelis, we actually engaged them in the early part of the fourth quarter, and that helped us all along the way as far as sifting through our options, bringing new ideas, bringing different capital alternatives to the table.

So they’ve been very helpful guiding us and helping us navigate some of this stuff and they’ll continue to do that in the future.

Ronald Kamdem: Great. That’s it from me. Thanks so much.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Yael Duffy for any closing remarks.

Yael Duffy: Thank you for joining us on the call today. Have a nice weekend.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.