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Wednesday, 22 November 2017

Select Income Eyes Spinning Off Industrial Properties

Select Income REIT, long frustrated that stock investors have improperly discounted its common shares, is spinning off what could be its most valuable assets - 266 industrial properties with 28.5 million square feet, mostly in Hawaii. The REIT, Industrial Logistics Properties Trust, would own just more than 40 percent of all the industrial space on Oahu.

Commercial Real Estate Direct Staff Report

Select Income REIT, long frustrated that stock investors have improperly discounted its common shares, is spinning off what could be its most valuable assets - 266 industrial properties with 28.5 million square feet, mostly in Hawaii.

The REIT, which also owns office properties, has filed to sell shares in Industrial Logistics Properties Trust, a REIT to which it has sold the properties, of which 16.8 million sf is on Oahu, Hawaii. That amounts to just more than 40 percent of the 41 million sf of industrial space that CBRE calculates is on Oahu.

The REIT likely becomes the largest owner of industrial space on the island. It also will own 40 properties with 11.7 million sf in 24 other states. The Hawaii properties would account for 60 percent of the company's annualized revenue.

The portfolio is just about fully occupied by 240 tenants, most of which are subject to net leases, meaning they pick up the cost of operating and maintaining their spaces. As a result, last year the portfolio generated $125.2 million of net operating income on $153.3 million of revenue.

Select Income's executives have long complained about the company's laggard stock price. In a conference call with analysts last month, David Blackman, the REIT's president and chief operating office, noted that the company's stock price was trading at the time at a...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

REITCafe

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