DHC - Why Office Properties Income Trust Stock Is Tanking Today
2023-09-05 11:47:26 ET
Shares of Office Properties Income Trust (NASDAQ: OPI) had tumbled more than 12% by 10:30 a.m. ET on Tuesday. Weighing on the office REIT was news that it had terminated its controversial merger with Diversified Healthcare Trust (NASDAQ: DHC) .
Office Properties Trust and Diversified Healthcare Trust announced plans to merge in an all-stock deal in April. The transaction would have created a diversified REIT with office and healthcare properties. The companies believed the combination would put them in a better position to navigate their challenges.
However, the deal would have merged two troubled REITs with significant weaknesses. Office Properties is facing significant upcoming lease maturities, a difficult financing environment, and the need for large investments to enhance its office properties to attract tenants. Meanwhile, Diversified Healthcare Trust faces substantial near-term debt maturities, high leverage, limited liquidity, and a sluggish recovery for its operated senior housing portfolio.
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Why Office Properties Income Trust Stock Is Tanking Today