Select Income REIT (NYSE: SIR) today announced financial results for the quarter ended March 31, 2012. SIR was formed on December 19, 2011 as a wholly owned subsidiary of CommonWealth REIT (NYSE: CWH), and SIR sold approximately 29.5% of its common shares in an initial public offering, or IPO, on March 12, 2012. Accordingly, SIR’s historical results of operations are not comparable to results which may be expected in future periods.
Results for the Quarter Ended March 31, 2012:
Funds from operations, or FFO, for the quarter ended March 31, 2012 were $20.4 million, or $1.55 per share, compared to FFO for the quarter ended March 31, 2011 of $20.2 million.
Net income was $17.7 million for the quarter ended March 31, 2012, compared to $17.5 million for the same quarter last year. Net income per share for the quarter ended March 31, 2012 was $1.34.The weighted average number of common shares outstanding was 13,205,000 for the quarter ended March 31, 2012. For the quarter ended March 31, 2011, SIR did not have any outstanding shares. SIR issued 22,000,000 common shares to CWH on February 16, 2012 (including 1,000 shares issued to CWH in connection with SIR’s formation on December 19, 2011) and issued 9,200,000 common shares in connection with its IPO on March 12, 2012. If the issuance of common shares to CWH and the IPO had occurred on January 1, 2012, then SIR’s weighted average number of common shares outstanding would have been 31,200,000 for the three months ended March 31, 2012. A reconciliation of net income determined according to U.S. generally accepted accounting principles, or GAAP, to FFO for the quarters ended March 31, 2012 and 2011 appears later in this press release. Occupancy and Leasing Results: As of March 31, 2012, 95.2% of SIR’s total rentable square feet was leased, compared to 95.3% as of December 31, 2011 and 95.9% as of March 31, 2011.