Reviewing Office Properties Income Trust (OPI) and Its Competitors

Office Properties Income Trust (NASDAQ: OPI) is one of 52 public companies in the “Real estate” industry, but how does it weigh in compared to its peers? We will compare Office Properties Income Trust to related companies based on the strength of its profitability, earnings, risk, analyst recommendations, dividends, valuation and institutional ownership.

Risk and Volatility

Office Properties Income Trust has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, Office Properties Income Trust’s peers have a beta of 1.20, suggesting that their average stock price is 20% more volatile than the S&P 500.

Dividends

Office Properties Income Trust pays an annual dividend of $2.20 per share and has a dividend yield of 7.1%. Office Properties Income Trust pays out 27.2% of its earnings in the form of a dividend. As a group, “Real estate” companies pay a dividend yield of 2.9% and pay out 53.4% of their earnings in the form of a dividend. Office Properties Income Trust is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Office Properties Income Trust and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Office Properties Income Trust 4.14% 0.64% 0.23%
Office Properties Income Trust Competitors 28.19% 3.80% 1.05%

Earnings & Valuation

This table compares Office Properties Income Trust and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Office Properties Income Trust $316.53 million $12.09 million 3.83
Office Properties Income Trust Competitors $1.39 billion $350.40 million 30.11

Office Properties Income Trust’s peers have higher revenue and earnings than Office Properties Income Trust. Office Properties Income Trust is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

41.4% of shares of all “Real estate” companies are owned by institutional investors. 1.3% of Office Properties Income Trust shares are owned by company insiders. Comparatively, 19.6% of shares of all “Real estate” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Office Properties Income Trust and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Office Properties Income Trust 0 0 0 0 N/A
Office Properties Income Trust Competitors 232 555 723 30 2.36

As a group, “Real estate” companies have a potential upside of 5.24%. Given Office Properties Income Trust’s peers higher probable upside, analysts plainly believe Office Properties Income Trust has less favorable growth aspects than its peers.

Summary

Office Properties Income Trust peers beat Office Properties Income Trust on 9 of the 12 factors compared.

Office Properties Income Trust Company Profile

Office Properties Income Trust is a real estate investment trust, or REIT, which owns buildings primarily leased to single tenants and those with high credit quality characteristics like government entities. In December 2018, our predecessor company Government Properties Income Trust, or GOV, merged with Select Income REIT, or SIR, and the combined company was renamed Office Properties Income Trust, or OPI. Combining the two companies creates a national office REIT with increased scale, enhanced tenant and geographic diversification, a well-laddered lease expiration schedule, a broader investment strategy, and a company with one of the highest percentages of rent paid by investment grade rated tenants in the office sector.

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