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Investor Presentaiton

OFFICE PROPERTIES INCOME TRUST CALCULATION OF PROPERTY NOI AND PROPERTY CASH BASIS NOI (1) (dollars in thousands) 9/30/2019 6/30/2019 For the Three Months Ended 3/31/2019 12/31/2018 9/30/2018 For the Nine Months Ended 9/30/2019 9/30/2018 Calculation of Property NOI and Property Cash Basis NOI: Rental income (2) Property operating expenses 167,411 $ (58,718) 176,032 $ 174,777 $ 103,656 $ (55,309) (57,909) (41,630) 106,102 $ (41,640) 518,220 $ (171,936) 322,904 (124,113) Property NOI 108,693 120,723 116,868 62,026 64,462 346,284 198,791 Non-cash straight line rent adjustments included in rental income (2) Lease value amortization included in rental income (2) (6,904) (5,667) (6,794) (2,339) (1,990) (19,365) (7,825) 35 1,446 1,147 542 773 2,628 2,361 Lease termination fees included in rental income (2) (22) (8,867) (294) (58) (122) (9,183) (122) Non-cash amortization included in property operating expenses (3) (121) (121) (121) (121) (121) (363) (363) Property Cash Basis NOI $ 101,681 $ 107,514 $ 110,806 $ 60,050 $ 63,002 $ 320,001 $ 192,842 Reconciliation of Net Income (Loss) Available for Common Shareholders to Property NOI and Property Cash Basis NOI: Net income (loss) available for common shareholders Preferred units of limited partnership distributions (3,939) (64,774) $ 34,019 (57,695) $ (449) $ (34,694) 35,440 371 Net income (loss) (3,939) (64,774) 34,019 (57,695) (449) (34,694) 35,811 (Income) loss from discontinued operations 18,150 (9,274) (23,872) Loss on early extinguishment of debt Income (loss) from continuing operations Equity in net (earnings) losses of investees Income tax (benefit) expense Interest expense (3,939) (64,774) 34,019 (39,545) (9,723) (34,694) 11,939 196 142 235 1,157 (94) 573 1,112 156 (130) 483 (7) 9 509 124 284 71 414 709 769 32,367 35,348 37,133 20,421 23,374 104,848 69,444 Interest income (358) (241) (248) (234) (140) (847) (405) Unrealized (gain) loss on equity securities 66,135 (22,128) 48,229 (17,425) 44,007 (40,677) Dividend income (980) (Gain) loss on sale of real estate (11,463) General and administrative 7,990 17 8,744 (980) (22,092) (425) (304) (1,960) (912) (3,332) (33,538) (17,329) 8,723 (11,516) 22,383 25,457 36,438 Acquisition and transaction related costs 98 584 10,695 3,813 682 3,813 Loss on impairment of real estate 8,521 2,380 3,204 2,830 14,105 5,800 Depreciation and amortization 74,939 73,913 77,521 33,044 42,569 226,373 129,444 Property NOI 108,693 120,723 116,868 62,026 64,462 346,284 198,791 Non-cash amortization included in property operating expenses Lease termination fees included in rental income (2) (3) (121) (121) (121) (121) (121) (363) (363) (22) (8,867) (294) (58) (122) (9,183) (122) Lease value amortization included in rental income (2) 35 Non-cash straight line rent adjustments included in rental income (2) Property Cash Basis NOI (6,904) 101,681 $ 1,446 (5,667) 107,514 $ 1,147 542 773 2,628 2,361 (6,794) 110,806 $ (2,339) (1,990) (19,365) (7,825) 60,050 $ 63,002 $ 320,001 $ 192,842 1) 2) 3) See Definitions of Certain Non-GAAP Financial Measures on page 22 for the definitions of Consolidated Property NOI and Consolidated Property Cash Basis NOI, a description of why we believe they are appropriate supplemental measures and a description of how we use these measures. Excludes three properties owned by our two unconsolidated joint ventures in which we own 51% and 50% interests. We report rental income on a straight line basis over the terms of the respective leases; accordingly, rental income includes non-cash straight line rent adjustments. Rental income also includes expense reimbursements, tax escalations, parking revenues, service income and other fixed and variable charges paid to us by our tenants, as well as the net effect of non-cash amortization of intangible lease assets and liabilities and lease termination fees, if any. We recorded a liability for the amount by which the estimated fair value for accounting purposes exceeded the price we paid for our investment in RMR Inc. common stock in June 2015. A portion of this liability is being amortized on a straight line basis through December 31, 2035 as a reduction to property management fees expense, which are included in property operating expenses. 22
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