FOR IMMEDIATE RELEASE
Christopher Ranjitkar, Director, Investor Relations
Select Income REIT Announces Fourth Quarter and Year End 2017 Results
Fourth Quarter Net Income of $0.02 Per Share
Fourth Quarter Normalized FFO of $0.39 Per Share
Fourth Quarter Same Property Cash Basis NOI Increased by 1.2%
Completed IPO of Industrial Logistics Properties Trust for Net Proceeds of Approximately $436 Million After Year End Newton, MA (February 16, 2018): Select Income REIT (Nasdaq: SIR) today announced financial results for the quarter and year ended December 31, 2017.
David Blackman, President and Chief Operating Officer of SIR, made the following statement:
“During the fourth quarter of 2017, Select Income REIT’s core operations were solid, as evidenced by our 1.2% increase in same property Cash Basis NOI and our strong leasing volume. We completed over 568,000 square feet of leases for rents that were 21% higher than previous rents for the same space. We also completed rent resets for 200,000 square feet of leases in Hawaii resulting in a weighted average rent increase of over 38%. In January, our consolidated subsidiary, Industrial Logistics Properties Trust, or ILPT, completed its initial public offering. We received $750 million in cash from the transaction, which we used to pay down debt, and SIR currently owns approximately 69.2% of ILPT's common shares.”
Results for the Quarter Ended December 31, 2017:
Net income attributed to SIR was $2.1 million, or $0.02 per diluted share, for the quarter ended December 31, 2017, compared to $24.2 million, or $0.27 per diluted share, for the same period last year. Net income attributed to SIR for the quarter ended December 31, 2017 includes business management incentive fees of $22.3 million, or $0.25 per diluted share. Net income attributed to SIR for the quarter ended December 31, 2016 includes a loss on impairment of real estate assets of $5.5 million, or $0.06 per diluted share.
Normalized funds from operations, or Normalized FFO, attributed to SIR for the quarter ended December 31, 2017 were $34.8 million, or $0.39 per diluted share, compared to $63.5 million, or $0.71 per diluted share, for the same quarter last year. Normalized FFO attributed to SIR for the quarter ended December 31, 2017 include business management incentive fees of $25.6 million, or $0.29 per diluted share.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
The following information was filed by Select Income Reit (SIR) on Friday, February 16, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.