{ "docId": "019de515-cba0-70a7-a6b9-851525291990", "docSlug": "74300d5991267f2d4038bce07bae27e6", "documentTitle": "Office Properties Income Trust | Investor Presentation Deck | 29 slides", "authorId": "office-properties-income-trust", "authorName": "Office Properties Income Trust", "documentKindSlug": "pitchdeck", "documentKindLabel": "Pitch deck", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2023-05-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 27, "pageCount": 29, "prevPage": 26, "nextPage": 28, "slideType": "appendix_disclosure", "function": "appendix", "density": "overcrowded", "nDataPoints": 0, "notes": null, "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de515-cba0-70a7-a6b9-851525291990/27", "deckHref": "/decks/019de515-cba0-70a7-a6b9-851525291990", "deckJsonHref": "/decks/019de515-cba0-70a7-a6b9-851525291990.json", "deckAnchorHref": "/decks/019de515-cba0-70a7-a6b9-851525291990#slide-27", "components": [ { "bbox": { "h": 0.07, "w": 0.94, "x": 0.03, "y": 0.9 }, "kind": "paragraph", "text": "We calculate cash available for distribution, or CAD, as shown on page 26. We define CAD as Normalized FFO minus recurring real estate related capital expenditures and adjusted for other non-cash and non-recurring items plus certain amounts excluded from Normalized FFO but settled in cash. CAD is among the factors considered by our Board of Trustees when determining the amount of distributions to our shareholders. Other real estate companies and REITs may calculate CAD differently than we do.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "192ca85a-1a8b-4d08-88be-919e0cd752e6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.14, "w": 0.94, "x": 0.03, "y": 0.34 }, "kind": "paragraph", "text": "The calculations of net operating income, or NOI, and Cash Basis NOI exclude certain components of net income (loss) in order to provide results that are more closely related to our property level results of operations. We calculate NOI and Cash Basis NOI as shown on page 24. We define NOI as income from our rental of real estate less our property operating expenses. NOI excludes amortization of capitalized tenant improvement costs and leasing commissions that we record as depreciation and amortization expense. We define Cash Basis NOI as NOI excluding non-cash straight line rent adjustments, lease value amortization, lease termination fees, if any, and non-cash amortization included in other operating expenses. We use NOI and Cash Basis NOI to evaluate individual and company-wide property level performance. Other real estate companies and REITs may calculate NOI and Cash Basis NOI differently than we do.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2f5f6378-7177-4678-a719-d56e673f7981", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.17, "w": 0.94, "x": 0.03, "y": 0.13 }, "kind": "paragraph", "text": "We present certain “non-GAAP financial measures” within the meaning of applicable rules of the SEC, including NOI, Cash Basis NOI, EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Normalized FFO and CAD. These measures do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income (loss) as indicators of our operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income (loss) as presented in our condensed consolidated statements of income (loss). We consider these non-GAAP measures to be appropriate supplemental measures of operating performance for a REIT, along with net income (loss). We believe these measures provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation and amortization expense, they may facilitate a comparison of our operating performance between periods and with other REITs and, in the case of NOI and Cash Basis NOI reflecting only those income and expense items that are generated and incurred at the property level may help both investors and management to understand the operations of our properties.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "64d905d9-70b3-4b46-b35e-59a302a52d57", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.17, "w": 0.94, "x": 0.03, "y": 0.5 }, "kind": "paragraph", "text": "We calculate earnings before interest, taxes, depreciation and amortization, or EBITDA, EBITDA for real estate, or EBITDAre, and Adjusted EBITDAre as shown on page 25. EBITDAre is calculated on the basis defined by The National Association of Real Estate Investment Trusts, or Nareit, which is EBITDA, excluding gains and losses on the sale of real estate, loss on impairment of real estate assets and adjustments to reflect our share of EBITDAre of our unconsolidated joint ventures. In calculating Adjusted EBITDAre, we adjust for the items shown on page 25 and include business management incentive fees, if any, only in the fourth quarter versus the quarter when they are recognized as expense in accordance with GAAP due to their quarterly volatility not necessarily being indicative of our core operating performance and the uncertainty as to whether any such business management incentive fees will be payable when all contingencies for determining such fees are known at the end of the calendar year. Other real estate companies and REITs may calculate EBITDA, EBITDAre and Adjusted EBITDAre differently than we do.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "82f1fc96-fc48-4bb1-a8a4-0b596cecbde4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.94, "x": 0.03, "y": 0.7 }, "kind": "paragraph", "text": "We calculate funds from operations, or FFO, and Normalized FFO as shown on page 26. FFO is calculated on the basis defined by Nareit, which is net income (loss), calculated in accordance with GAAP, plus real estate depreciation and amortization of consolidated properties and our proportionate share of the real estate depreciation and amortization of unconsolidated joint venture properties, but excluding impairment charges on real estate assets and any gain or loss on sale of real estate, as well as certain other adjustments currently not applicable to us. In calculating Normalized FFO, we adjust for the other items shown on page 26 and include business management incentive fees, if any, only in the fourth quarter versus the quarter when they are recognized as an expense in accordance with GAAP due to their quarterly volatility not necessarily being indicative of our core operating performance and the uncertainty as to whether any such business management incentive fees will be payable when all contingencies for determining such fees are known at the end of the calendar year. FFO and Normalized FFO are among the factors considered by our Board of Trustees when determining the amount of distributions to our shareholders. Other factors include, but are not limited to, requirements to maintain our qualification for taxation as a REIT, limitations in our credit agreement and public debt covenants, the availability to us of debt and equity capital, our expectation of our future capital requirements and operating performance and our expected needs for and availability of cash to pay our obligations. Other real estate companies and REITs may calculate FFO and Normalized FFO differently than we do.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d061e69d-89e8-4e9c-8868-ef5fff85a9f4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.01, "w": 0.02, "x": 0.94, "y": 0.96 }, "kind": "source-note", "text": "27", "attrs": {}, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a6f4ef49-d55b-4342-82f1-3141ea4653ec", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.7, "x": 0.15, "y": 0.06 }, "kind": "title", "text": "NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS", "attrs": {}, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "14b9dc0d-8051-4d13-8e81-da57ace9cb19", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Audience Definition", "slug": "audience-definition", "agent": "Storyteller", "layer": "slide", "matchId": "491bd5c3-424f-492e-9c28-e8dc448006bf", "evidence": "The slide provides definitions for various non-GAAP financial measures, indicating an effort to educate the audience on these terms.", "confidence": 0.7 } ], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }