1 REIT That Isn't Seeing Any Slowdown

NASDAQ: OPI | Office Properties Income Trust of Beneficial Interest News, Ratings, and Charts

OPI – Office Properties Income Trust (OPI) reported robust fundamental performance across its operating segments in the last quarter and expects to witness continued growth in the coming months. Therefore, we think it could be a great addition to one’s portfolio. Read on…

Office Properties Income Trust (OPI) is a real estate investment trust that owns, operates, and leases buildings mostly to single tenants and those with high credit quality characteristics, such as government institutions. OPI is managed by the operating subsidiary of The RMR Group Inc. (RMR), an alternative asset management firm based in Newton, Massachusetts.

OPI’s first-quarter results showed that the company’s overall performance remained favorable. It executed 572,000 square feet of new and renewal leasing with a 5.1% weighted average rent roll-up and a lease term of more than ten years. It completed almost one million square feet of fresh leasing over the last four quarters, concluding the first quarter with same-property occupancy of more than 91%.

The stock has gained 1.6% over the past month to close its last trading session at $19.67.

Here’s what could shape OPI’s performance in the near term:

Impressive Growth Prospects

Street expects OPI’s EPS to rise 89.1% in the current quarter ending June 2022. In addition, OPI’s EPS is expected to rise at a 5% CAGR over the next five years. Moreover, the company’s revenue is expected to increase marginally year-over-year to $570.98 million next year.

Discounted Valuation

In terms of trailing-12-month Price/Cash Flow, the stock is currently trading at 4.45x, 69.7% lower than the industry average of 14.68x. Also, its trailing-12-month Price/Sales of 1.64x is 70.5% lower than the industry average of 5.55x. Moreover, OPI’s trailing-12-month Price/Book of 0.65x is 61.2% lower than the industry average of 1.68x.

Consensus Rating and Price Target Indicate Potential Upside

Of the two Wall Street analysts that rated the stock, one rated it a Buy. The 12-month median price target of $27 indicates a 37.3% potential upside. The price targets range from a low of $16.00 to a high of $38.00.

POWR Ratings Reflect Solid Prospects

OPI has an overall grade of B, equating to a Buy rating in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight different categories. OPI has an A grade for Growth. OPI’s solid earnings and revenue growth potential is consistent with the Growth grade.

Of the 50 stocks in the C-rated REITs – Diversified industry, OPI is ranked #9.

Beyond what I stated above, we have graded OPI for Stability, Value, Quality, Sentiment, and Momentum. Get all OPI ratings here.

Bottom Line

OPI exhibited robust financial performance in its first-quarter earnings report. Furthermore, its stock could witness a significant upside based on its recent and upcoming projects. In addition, given the favorable analysts’ price targets and its fundamental strength, OPI could witness a solid upside in the coming weeks. So, we think the stock could be a great buy now.

How Does Office Properties Income Trust (OPI) Stack Up Against its Peers?

OPI has an overall POWR Rating of B, which equates to a Buy rating. Check out these other stocks within the same industry with A (Strong Buy) or B (Buy) ratings: Alliance Global Group Inc. (ALGGY), Land Securities Group PLC (LDSCY), Lamar Advertising Co. (LAMR).


OPI shares were unchanged in premarket trading Monday. Year-to-date, OPI has declined -14.99%, versus a -15.96% rise in the benchmark S&P 500 index during the same period.


About the Author: Pragya Pandey


Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
OPIGet RatingGet RatingGet Rating
ALGGYGet RatingGet RatingGet Rating
LDSCYGet RatingGet RatingGet Rating
LAMRGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Recession or Not Recession…That Is the Question

Every investor appreciates that recessions and bear markets go hand in hand. But the definition of a recession often seems more difficult to pin down. So are we in a recession? And if not, then does that mean that disaster has been averted or that the pain train is still rolling towards investors? This is an important debate because it helps us appreciate what lies ahead for the stock market (SPY). We will tackle this vital topic in this week's commentary. Read on below...

:  |  News, Ratings, and Charts

3 Active Stocks on Wall Street to Buy Right Now

Even though the U.S. stocks ended July with decent gains, growing recession fears could keep the stock market under pressure in the near term. However, despite the current market headwinds, it could be wise to invest in fundamentally sound stocks, Microsoft (MSFT), SIGA Technologies (SIGA), and Fortinet (FTNT), which have been active on Wall Street lately. Read on to learn more…

:  |  News, Ratings, and Charts

4 Big Reasons Why the Bear Rally Is Nearing an End…

The Stock Market (SPY) has put on an impressive rally over the last few weeks, leading many investors to believe that the bull is ready to resume its run. However, there are multiple reasons to believe the bear market is far from over. I lay out 4 of the main reasons below and explain how you can profit from the volatile markets that lie ahead. Read on below for more…

:  |  News, Ratings, and Charts

2 Winning Stocks to Pay Attention to This Week

Concerns over soaring inflation, the Fed’s aggressive interest rate hikes, the decline in GDP for two consecutive quarters, and a potential recession are expected to keep the stock market under pressure in the near term. Fundamentally sound and winning stocks Murphy USA (MUSA) and JAKKS Pacific (JAKK) could be good additions to your watchlist as investors prepare for a busy week of inflation data. Let’s discuss…

:  |  News, Ratings, and Charts

4 Big Reasons Why the Bear Rally Is Nearing an End…

The Stock Market (SPY) has put on an impressive rally over the last few weeks, leading many investors to believe that the bull is ready to resume its run. However, there are multiple reasons to believe the bear market is far from over. I lay out 4 of the main reasons below and explain how you can profit from the volatile markets that lie ahead. Read on below for more…

Read More Stories

More Office Properties Income Trust of Beneficial Interest (OPI) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All OPI News