Investor Presentaiton
OFFICE PROPERTIES INCOME TRUST
FEES THAT OPI PAYS TO RMR ARE PRIMARILY PERFORMANCE BASED
WHICH ALIGNS INTERESTS WITH SHAREHOLDERS
RMR base management fee tied to OPI share price
performance.
• Consists of an annual fee equal to generally 50 bps multiplied by the
lower of: (1) OPI's historical cost of real estate, or (2) OPI's total market
capitalization.
• There is no incentive for RMR to complete any transaction that could
reduce share price.
RMR incentive fees contingent on total shareholder return
outperformance.
• Incentive management fee: 12% of the outperformance of our total
return per share compared to the MSCI U.S. Office REIT Index over a
three year period multiplied by equity market capitalization.
Outperformance must be positive to be earned.
•
• Shareholders keep 100% of benchmark returns and at least 88% of
returns in excess of the benchmark.
Other fees.
• Property management fee: consists of an annual fee based on 3.0% of
rents collected at OPI's managed properties.
• Construction management fee based on 5.0% of project costs.
Alignment of Interests
If OPI's share price goes up and its total market
cap exceeds its historical cost of real estate;
RMR base management fee is capped at 50 bps
of historical cost of real estate.
If OPI's stock price goes down and its historical
cost of real estate exceeds its total market cap;
RMR gets less base management fees (50 bps
on equity market cap plus debt).
Incentive fee structure keeps RMR focused on
increasing total shareholder return.
Members of RMR senior management are
holders of OPI common shares, some subject to
long term lock up agreements.
OPI shareholders have visibility into RMR, a
publicly traded company.
OPI benefits from RMR's national footprint and
economies of scale of $36 billion platform.
15View entire presentation