Government Properties Income Trust, Select Income REIT to Merge
Government Properties Income Trust is merging with Select Income REIT. The newly-named Office Properties Income Trust (OPI) will focus on a portfolio of office buildings primarily leased to single tenants and high credit quality tenants like government entities.
OPI will continue to be managed by the operating subsidiary of The RMR Group Inc., and will be listed on the Nasdaq. The new entity will hold 213 properties containing 30.2 million square feet, with undepreciated gross assets of $6.1 billion across 38 states and the District of Columbia.
Government Properties’ Mark Kleifges says, “This transaction addresses a number of the challenges that GOV has been facing, including a high dividend payout ratio, a concentration of near term lease expirations and a high tenant concentration. We believe GOV shareholders will benefit from this transaction by having a well covered dividend set to a long term sustainable level, extending and better laddering the lease expiration schedule, increasing scale and enhancing diversification.”
For comments, questions or concerns, please contact Dennis Kaiser