Office Properties Income Trust Further Implements its Financing Strategy for its Merger with Diversified Healthcare Trust with the Closing of $77.4 Million of Mortgage Loans

Office Properties Income Trust (Nasdaq: OPI) today announced that it has closed an additional three mortgage loans totaling $77.4 million of gross proceeds, further implementing its financing strategy to complete its previously announced merger with Diversified Healthcare Trust (Nasdaq: DHC). In aggregate to date, OPI has closed in excess of $108 million in mortgage loans with a combined total loan to value ratio of over 52% and a combined implied capitalization rate based on the aggregate appraised value for the collateral properties of 7.5%.

The non-recourse loans announced today consist of the following transactions:

• $42.7 million mortgage with an 8.272% all-in fixed interest rate and a five-year interest-only term, secured by a 250,000 square foot, 100% occupied property located in Ewing, New Jersey.
• $26.3 million mortgage with an 8.139% all-in fixed interest rate and a five-year interest-only term, secured by a 167,000 square foot, 100% occupied property located in Sterling, Virginia.
• $8.4 million mortgage with a 7.305% all-in fixed interest rate and a 10-year interest-only term, secured by a 58,000 square foot, 100% occupied property located in San Jose, California.

As previously disclosed, in connection with the announcement of OPI’s proposed merger with DHC, OPI obtained a bridge loan commitment from JPMorgan Chase Bank, NA for $368 million of proceeds. OPI’s overall financing strategy is to separately secure loans on certain of the bridge loan collateral properties on better terms than the bridge instead of drawing on the bridge loan facility. The loans announced today advance that strategy.

Matthew Brown, OPI’s Chief Financial Officer and Treasurer, made the following statement:

“We continue to execute on our financial strategy aimed at completing our merger with Diversified Healthcare Trust without drawing on our bridge loan facility. In the midst of challenging capital market conditions, we have closed more than $108 million in mortgage financings over the past month, demonstrating strong interest from the lending community, our ability to raise capital efficiently and the quality of OPI’s highly financeable portfolio of properties. We look forward to providing further updates as we finance additional OPI bridge loan collateral properties.”