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.
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