The accompanying condensed consolidated financial statements of Office Properties Income Trust and its subsidiaries, or OPI, we, us or our, are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2021,2022, or our 20212022 Annual Report. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair statement of results for the interim period have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Our operating results for interim periods are not necessarily indicative of the results that may be expected for the full year.

The preparation of these financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the condensed consolidated financial statements include purchase price allocations, useful lives of fixed assets and assessment of impairment of real estate and the related intangibles.

As of June 30, 2022,2023, our wholly owned properties were comprised of 172155 properties containing approximately 22,491,00020,784,000 rentable square feet, with an undepreciated carrying value of $3,918,825,$4,050,183, including $95,456$14,630 classified as held for sale. We also had noncontrolling ownership interests of 51% and 50% in 2two unconsolidated joint ventures that own 3three properties containing approximately 444,000 rentable square feet. We generally lease space at our properties on a gross lease, modified gross lease or net lease basis pursuant to fixed term contracts expiring between 20222023 and 2053. Some of our leases generally require us to pay all or some property operating expenses and to provide all or most property management services. During the three months ended June 30, 2022,2023, we entered into 1823 leases for approximately 679,000713,000 rentable square feet for a weighted (by rentable square feet) average lease term of 9.210.3 years and we made commitments of $40,638 for approximately $37,369 of leasing related costs. During the six months ended June 30, 2022,2023, we entered into 39 leases for approximately 1,251,000916,000 rentable square feet for a weighted (by

We regularly evaluate whether events or changes in circumstances have occurred that could indicate an impairment in the value of our long lived assets. Impairment indicators may include declining tenant occupancy, lack of progress releasing vacant space, tenant bankruptcies, low long term prospects for improvement in property performance, weak or declining tenant profitability, cash flow or liquidity, our decision to dispose of an asset before the end of its estimated useful life and legislative, market or industry changes that could permanently reduce the value of a property. If there is an indication that the carrying value of an asset is not recoverable, we estimate the projected undiscounted cash flows to determine if an impairment loss should be recognized. The future net undiscounted cash flows are subjective and are based in part on assumptions regarding hold periods, market rents and terminal capitalization rates. We determine the amount of any impairment loss by comparing the historical carrying value to estimated fair value. We estimate fair value through an evaluation of recent financial performance and projected discounted cash flows using standard industry valuation techniques. In addition to the consideration of impairment upon the events or changes in circumstances described above, we regularly evaluate the remaining useful lives of our long lived assets. If we change our estimate of the remaining useful lives, we allocate the carrying value of the affected assets over their revised remaining useful lives.

During the six months ended June 30, 2022,2023, we sold 6five properties containing approximately 778,000296,000 rentable square feet for an aggregate sales price of $77,720,$13,075, excluding closing costs. The sales of these properties, as presented in the table below, do not represent significant dispositions individually or in the aggregate, nor do they represent a strategic shift in our business. As a result, the results of operations of these properties are included in continuing operations through the date of sale in our condensed consolidated statements of comprehensive income (loss).

As of June 30, 2022,2023, we had 11two properties containing approximately 1,408,000 rentable square feet classified as held for sale in our condensed consolidated balance sheet, 10sheet. As of whichJuly 25, 2023, we have been sold or are underentered into an agreement to sell for an aggregate sales priceone of $119,600 and are summarized below:

At June 30, 2022,2023, the aggregate unamortized basis difference of our 2two unconsolidated joint ventures of $6,734 is$6,245 was primarily attributable to the difference between the amount we paid to purchase our interest in these joint ventures, including transaction costs, and the historical carrying value of the net assets of these joint ventures. This difference is being amortized over the remaining useful life of the related properties and the resulting amortization expense is included in equity in net losses of investees in our condensed consolidated statements of comprehensive income (loss).

Our leases provide for base rent payments and in addition may include variable payments. Rental income from operating leases, including any payments derived by index or market-based indices, is recognized on a straight line basis over the lease term when we have determined that the collectability of substantially all of the lease payments is probable. Some of our leases have options to extend or terminate the lease exercisable at the option of our tenants, which are considered when determining the lease term. Allowances for bad debts are recognized as a direct reduction of rental income. In certain circumstances, some leases provide the tenant with the right to terminate if the legislature or other funding authority does not appropriate the funding necessary for the tenant to meet its lease obligations; we have determined the fixed non-cancelable lease term of these leases to be the full term of the lease because we believe the occurrence of early terminations to be a remote contingency based on both our historical experience and our assessments of the likelihood of lease cancellation on a separate lease basis.

We increased rental income to record revenue on a straight line basis by $2,775$4,256 and $3,847$2,775 for the three months ended June 30, 20222023 and 2021,2022, respectively, and $5,461$8,429 and $9,204$5,461 for the six months ended June 30, 20222023 and 2021,2022, respectively. Rents receivable, excluding properties classified as held for sale, include $86,379included $94,705 and $82,978$86,305 of straight line rent receivables at June 30, 20222023 and December 31, 2021,2022, respectively.

We do not include in our measurement of our lease receivables certain variable payments, including payments determined by changes in the index or market-based indices after the inception of the lease, certain tenant reimbursements and other income until the specific events that trigger the variable payments have occurred. Such payments totaled $22,101$22,190 and $44,637$43,560 for the three and six months ended June 30, 2022,2023, respectively, of which tenant reimbursements totaled $21,009$20,853 and $42,484,$40,919, respectively. For the three and six months ended June 30, 2021,2022, such payments totaled $17,488$22,101 and $36,348,$44,637, respectively, of which tenant reimbursements totaled $16,639$21,009 and $34,442,$42,484, respectively.

We define annualized rental income as the annualized contractual base rents from our tenants pursuant to our lease agreements as of the measurement date, plus straight line rent adjustments and estimated recurring expense reimbursements to be paid to us, and excluding lease value amortization. As of June 30, 2023 and 2022, the U.S. government 11and certain state governments and 4 other government tenants combined were responsible for approximately 28.4% of our annualized rental income. As of June 30, 2021, the U.S. government, 11 state governments28.5% and 4 other government tenants combined were responsible for approximately 31.9%28.4%, respectively, of our annualized rental income. The U.S. government is our largest tenant by annualized rental income and represented approximately 18.5%19.6% and 22.0%18.5% of our annualized rental income as of June 30, 2023 and 2022, and 2021, respectively.

At June 30, 2022,2023, our 172155 wholly owned properties were located in 3230 states and the District of Columbia. Properties located in California, Virginia, California, Illinois, the District of Columbia and Georgia were responsible for approximately 11.8%11.9%, 11.3%11.1%, 10.5%10.7%, 10.2%10.3% and 8.7%9.2% of our annualized rental income as of June 30, 2022,2023, respectively.

Our principal debt obligations at June 30, 20222023 were: (1) $230,000$240,000 of outstanding borrowings under our $750,000 unsecured revolving credit facility; (2) $2,212,000 aggregate outstanding principal amount of senior unsecured notes; and (3) $73,018$108,120 aggregate outstanding principal amount of mortgage notes.

In March 2023, we amended our credit agreement to, among other things, replace LIBOR with the secured overnight financing rate, or SOFR, as the benchmark interest rate for calculating interest payable on the amounts outstanding under our revolving credit facility. We are required to pay interest at a rate of LIBORSOFR plus a premium, which was 110145 basis points per annum at June 30, 2022,2023, on the amount outstanding under our revolving credit facility. We also pay a facility fee on the total amount of lending commitments under our revolving credit facility, which was 2530 basis points per annum at June 30, 2022.2023. Both the interest rate premium and facility fee are subject to adjustment based upon changes to our credit ratings. As of June 30, 20222023 and December 31, 2021,2022, the annual interest rate payable on borrowings under our revolving credit facility was 2.4%6.6% and 1.2%5.4%, respectively. The weighted average annual interest rate for borrowings under our revolving credit facility was 2.4%6.5% and 6.2% for the three and six months ended June 30, 20222023, respectively, and 1.2%2.4% for both the three and six months ended June 30, 2021.2022. As of June 30, 20222023 and July 27, 2022,25, 2023, we had $230,000$240,000 and $200,000,$230,000, respectively, outstanding under our revolving credit facility, and $520,000$510,000 and $550,000,$520,000, respectively, available for borrowing.

Our credit agreement and senior unsecured notes indentures and their supplements provide for acceleration of payment of all amounts due thereunder upon the occurrence and continuation of certain events of default, such as, in the case of our credit agreement, a change of control of us, which includes The RMR Group LLC, or RMR, ceasing to act as our business and property manager. Our credit agreement and senior unsecured notes indentures and their supplements also contain covenants, including covenants that restrict our ability to incur debts, require us to comply with certain financial covenants and, in the case of our credit agreement, restrict our ability to make distributions under certain circumstances. We believe we were in compliance with the terms and conditions of the respective covenants under our credit agreement and senior unsecured notes indentures and their supplements at June 30, 2022.2023.

In April 2022,June 2023, we prepaid,repaid at par plus accrued interest,maturity, a mortgage note secured by one property with an outstanding principal balance of $24,863,$50,000 and an annual interest rate of 4.22% and a maturity date in July 2022.3.70%.

We estimated the fair values of our senior unsecured notes (except for our senior unsecured notes due 2050) using an average of the bid and ask price of the notes (Level 2 inputs as defined in the fair value hierarchy under GAAP) as of the measurement date. We estimated the fair value of our senior unsecured notes due 2050 based on the closing price on The

On June 16, 2022,13, 2023, in accordance with our Trustee compensation arrangements,agreements, we awarded to each of our 9nine Trustees 3,500 of our common shares, valued at $18.84$7.90 per share, the closing price of our common shares on Nasdaq on that day.