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Select Income REIT Announces the Completion of the Distribution of 45 Million Common Shares of Industrial Logistics Properties Trust

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Select Income REIT (NASDAQ:SIR) today announced that it has completed
the distribution of all its 45,000,000 common shares of beneficial
interest of Industrial Logistics Properties Trust (NASDAQ:ILPT) (the
"ILPT common shares") that it owned in a pro rata distribution (the
"Distribution"). The ILPT common shares were distributed on December 27,
2018 (the "Distribution Date") to the holders of SIR's common shares of
beneficial interest (the "SIR common shares") outstanding as of the
close of business on December 20, 2018 (the "Record Date").

Each common shareholder of SIR entitled to receive ILPT shares in the
Distribution received approximately 0.503 ILPT common shares for each
SIR common share outstanding as of the Record Date, subject to cash
payment in lieu of any fractional shares.

The Distribution is a condition of closing SIR's merger (the "Merger")
with Government Properties Income Trust (NASDAQ:GOV), which merger was
approved by SIR shareholders at SIR's special meeting of shareholders
held on December 20, 2018 and is expected to be effective December 31,
2018.

SIR expects that approximately half of its 2018 cash and other
distributions (including the Distribution) will be a nontaxable return
of capital to SIR's shareholders.

For more information, shareholders who are record holders of SIR common
shares should contact SIR's transfer agent, registrar and dividend
disbursing agent, EQ Shareowner Services, at (855) 598-5491.
Shareholders who hold SIR common shares in an account with a broker,
bank or other nominee should contact such broker, bank or other nominee.

Select Income REIT is a real estate investment trust, or REIT, which
owns properties that are primarily net leased to single tenants. SIR is
managed by the operating subsidiary of The RMR Group Inc. (NASDAQ:RMR),
an alternative asset management company that is headquartered in Newton,
MA.

WARNING REGARDING FORWARD LOOKING STATEMENTS

THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING
STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER SIR USES
WORDS SUCH AS "BELIEVE", "EXPECT", "ANTICIPATE", "INTEND", "PLAN",
"ESTIMATE", "WILL", "MAY" AND NEGATIVES OR DERIVATIVES OF THESE OR
SIMILAR EXPRESSIONS, SIR IS MAKING FORWARD LOOKING STATEMENTS. THESE
FORWARD LOOKING STATEMENTS ARE BASED UPON SIR'S PRESENT INTENT, BELIEFS
OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO
OCCUR AND MAY NOT OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
CONTAINED IN OR IMPLIED BY SIR'S FORWARD LOOKING STATEMENTS AS A RESULT
OF VARIOUS FACTORS. FOR EXAMPLE:

  • THE CLOSING OF THE MERGER IS SUBJECT TO THE SATISFACTION OR WAIVER OF
    CERTAIN CONDITIONS. SIR CANNOT BE SURE THAT ANY OR ALL OF SUCH
    CONDITIONS WILL BE SATISFIED OR WAIVED. ACCORDINGLY, THE MERGER
    MAY NOT CLOSE WHEN EXPECTED OR AT ALL, OR THE TERMS OF THE MERGER
    MAY CHANGE.
  • THIS NEWS RELEASE STATES THAT SIR EXPECTS THAT APPROXIMATELY HALF OF
    ITS 2018 CASH AND OTHER DISTRIBUTIONS (INCLUDING THE DISTRIBUTION)
    WILL BE A NON-TAXABLE RETURN OF CAPITAL TO SIR's SHAREHOLDERS;
    HOWEVER, THE TAX CHARACTERIZATION OF THE DISTRIBUTION AND
    DETERMINATION OF ITS TAX LIABILITY WILL NOT BE FINALIZED UNTIL EARLY
    2019 AND COULD DIFFER FROM THIS EXPECTATION. UPON RECEIPT OF THIS
    INFORMATION, SHAREHOLDERS ARE ADVISED TO CONSULT WITH THEIR TAX
    PROFESSIONALS.

THE INFORMATION CONTAINED IN SIR'S FILINGS WITH THE SEC, INCLUDING UNDER
THE CAPTION "RISK FACTORS" IN SIR'S ANNUAL REPORT ON FORM 10-K FOR THE
YEAR ENDED DECEMBER 31, 2017 AND THE JOINT PROXY STATEMENT/PROSPECTUS
FILED BY SIR ON NOVEMBER 16, 2018, AS IT MAY BE AMENDED OR SUPPLEMENTED
FROM TIME TO TIME, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE
SIR'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE STATED IN OR
IMPLIED BY SIR'S FORWARD LOOKING STATEMENTS. SIR'S FILINGS WITH THE SEC
ARE AVAILABLE ON THE SEC'S WEBSITE AT WWW.SEC.GOV.

YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.

EXCEPT AS REQUIRED BY LAW, SIR DOES NOT INTEND TO UPDATE OR CHANGE ANY
FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS
OR OTHERWISE.

A Maryland Real Estate Investment Trust with transferable shares of
beneficial interest listed on the Nasdaq.

No shareholder,
Trustee or officer is personally liable for any act or obligation of the
Trust.

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