Office Properties Income Trust

First, there are 14 properties where value has been maximized through leasing efforts or the entitlement process. These are well-located assets with strong tenancy and where current market conditions are expected to yield attractive pricing. Second, there are eight assets we have identified to reduce our exposure to specific markets, such as Washington, D.C. and Seattle. While we are reducing our concentration in Washington, D.C., it will remain our largest market. In Seattle, we are exiting the market entirely, allowing us to focus on locations where we have higher conviction. Third, we are addressing tenant and lease-related risk in six buildings with shorter remaining lease terms. Selling these assets enables OPI to realize value now rather than carry future renewal and releasing risk. And finally, we are exiting four vacant or soon-to-be-vacant buildings that are a drag on cash flow, eliminating annual carry costs of $5 million. Importantly, we are approaching these sales as a value-maximizing process. Each asset is being marketed through a competitive broker process or, where appropriate, an auction format designed to generate competitive tension among buyers. We have made significant progress. In July, OPI sold two properties for approximately $59 million. Additionally, nine properties are under purchase and sale agreement to sell for $50 million, and 12 assets are under letter of intent for $148 million. The remaining nine properties are in various stages of the marketing process. In many cases, Pricing is at or above our internal estimates and third-party appraisals, with buyer interest spanning owner-users, value-add investors, and redevelopment buyers. Looking ahead, we are committed to maximizing shareholder value through three areas of focus, including increasing free cash flow through leasing, occupancy growth, and proactive asset management. optimizing the composition of OPI's office portfolio by continuing to evaluate asset sales and applying any proceeds towards increasing liquidity and reducing leverage, and creating franchise value by maintaining strong tenant relationships and operating OPI's portfolio efficiency. While significant work remains, OPI is in a much stronger position today than it was a year ago, with substantially less debt, greater financial flexibility, and a clear path forward to growing cash flows and creating long-term value for its stakeholders. I will now turn the call over to Brian.

Thank you, Yael. Good morning. During the quarter, we completed our restructuring and incorporated Fresh Start Accounting under GAAP upon emergence. For additional details, including the presentation and reconciliation of our GAAP and non-GAAP measures for the second quarter of 2026, please refer to our earnings presentation and 10-Q filed last evening. The second quarter, normalized FFO was $19 million and adjusted EBIT to RE was $65 million. will be joining us in just a moment.

Components of annualized rental income as of June 30th is broken down as follows.