Select Income REIT (SIR) Tops Q3 EPS by 16c, Revenues Beat

Select Income REIT (NASDAQ: SIR) reported Q3 EPS of $0.33, $0.16 better than the analyst estimate of $0.17. Revenue for the quarter came in at $121.88 million versus the consensus estimate of $116.17 million.

"The major development for Select Income REIT this quarter was our agreement to merge with Government Properties Income Trust. We believe this transaction will create a leading national office REIT with increased scale, strong portfolio characteristics and one of the highest percentages of rent paid by investment grade rated tenants in the office sector. As part of the merger, we expect to distribute to our shareholders all 45,000,000 common shares of Industrial Logistics Properties Trust that we own, completely separating the two companies and positioning our shareholders to possibly benefit from the increased liquidity in ILPT shares.

During the third quarter, we were also successful in operating our business. We sold a 418,000 square foot vacant land parcel in Hawaii for $10.3 million, resulting in a net gain of $4.1 million. We, excluding ILPT, also entered one lease renewal for 72,000 square feet that resulted in a rental rate that was approximately 40% higher than the prior rental rate for the same space and a lease term of 7.6 years."

For earnings history and earnings-related data on Select Income REIT (SIR) click here.

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