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Shares of Select Income REIT
SIR, -0.45%
Monday, after the company agreed to be acquired by another real estate investment trust, Government Properties Income Trust, creating a REIT focused on leasing office properties primarily to single tenants, such as government entities. Under the terms of the transaction, Government Properties will sell the 24.9 million shares it holds in Select Income, and the shareholders of Select Income REIT will receive the equivalent of $ 29.26 for each Select Income share, or 46% higher than Friday. Based on Friday's closing price, which includes 1.04 government property shares for each selected income share held, or $ 17.57, plus a special dividend of 45 million shares held by Industrial Logistics Properties Trust, which is rated to share. The transaction is expected to close in late 2018 or early 2019, and Government Properties' shareholders will own 52% of the combined entity, which will be named Office Properties Income Trust, and 48% will be owned by Select Income shareholders. . The new combined company will be listed on the Nasdaq under the symbol "OPI". Prior to the transaction, the market capitalization of Government Properties was $ 1.67 billion and the market capitalization of Select Income was $ 1.80 billion. Government Properties shares have lost 8.9% since the beginning of the year to Friday, while Select Income shares have lost 20.2%, the SPDR Real Estate Select ETF.
XLRE, -0.86%
had gained 1.9% and the S & P 500
SPX, + 0.03%
had gone on 8.7%.
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