Office Properties Income Trust stock drops on bankruptcy rumors

Investing.com -- Office Properties Income Trust (NASDAQ: OPI) stock tumbled 24.1% following reports that the company is considering filing for bankruptcy protection ahead of significant debt maturities.

According to 9fin editor Rachel Butt on social media platform X, the real estate investment trust is weighing bankruptcy options as it faces more than $900 million in debt coming due through 2027. The potential filing is "expected to be messy," according to the report, which cited work by 9fin reporters Nicholas Rizzi and Max Frumes.

The steep stock decline reflects investor concerns about the company's ability to refinance its substantial debt load in the current commercial real estate environment, which has been particularly challenging for office property owners since the pandemic shifted work patterns.

Office Properties Income Trust, which owns and leases office properties primarily to single tenants including government entities, has not publicly confirmed the bankruptcy considerations reported by 9fin.

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