FOR IMMEDIATE RELEASE
Christopher Ranjitkar, Director, Investor Relations
Select Income REIT Announces First Quarter 2018 Results
First Quarter Net Income of $0.37 Per Share
First Quarter Normalized FFO of $0.63 Per Share
Industrial Logistics Properties Trust Completed IPO for Net Proceeds of Approximately $444 Million Newton, MA (May 1, 2018): Select Income REIT (Nasdaq: SIR) today announced financial results for the quarter ended March 31, 2018.
David Blackman, President and Chief Operating Officer of SIR, made the following statement:
“During the first quarter of 2018, Select Income REIT made important progress executing its strategic operating plan. Our consolidated subsidiary, Industrial Logistics Properties Trust (ILPT), completed its initial public offering, allowing us to create a pure play industrial REIT at a significantly greater valuation than what the assets achieved inside SIR. ILPT continues to have significant upside potential. With the proceeds we received from ILPT, we redeemed $350.0 million of senior notes and repaid a $350.0 million unsecured term loan, reducing our leverage to a level consistent with our target. With respect to our leasing activity, excluding ILPT, we entered new and renewal leases for approximately 55,000 square feet, resulting in rental rates that were approximately 10.7% more than previous rental rates for the same space, a weighted average lease term of four years, and leasing concessions and capital commitments of $1.52 per square foot per lease year.”
Results for the Quarter Ended March 31, 2018:
Net income attributed to SIR for the quarter ended March 31, 2018 was $33.2 million, or $0.37 per diluted share, compared to $6.7 million, or $0.08 per diluted share, for the same period last year. Net income attributed to SIR for the quarter ended March 31, 2018 includes an unrealized gain on equity securities of $16.9 million, or $0.19 per diluted share, which is included in earnings in accordance with U.S. generally accepted accounting principles, or GAAP, effective January 1, 2018, partially offset by net income allocated to noncontrolling interest representing allocations to public shareholders of Industrial Logistics Properties Trust, or ILPT, SIR's consolidated subsidiary, of $4.5 million, or $0.05 per diluted share. Net income attributed to SIR for the quarter ended March 31, 2017 includes a write-off of straight line rents receivable of $12.5 million, or $0.14 per diluted share, and a loss on asset impairment of $4.0 million, or $0.05 per diluted share, both of which were related to leases associated with a tenant bankruptcy.
Normalized funds from operations, or Normalized FFO, attributed to SIR for the quarter ended March 31, 2018 were $56.0 million, or $0.63 per diluted share, compared to $52.4 million, or $0.59 per diluted share, for the
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 Tuesday, May 1, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.