Market Overview

Select Income REIT Completes Its Distribution of 45 Million Common Shares of Industrial Logistics Properties Trust

Share:

Industrial Logistics Properties Trust Announces Agreement to Change
the Comparative Index for Determining the Incentive Fee Payable to its
Manager under its Business Management Agreement

Industrial Logistics Properties Trust (NASDAQ:ILPT) today announced
that Select Income REIT (NASDAQ:SIR) has informed it that SIR has
completed the distribution of 45,000,000 common shares of ILPT that SIR
owned. SIR has announced that it completed this distribution on December
27, 2018 and that it paid the distribution to the holders of SIR's
common shares outstanding as of the close of business on December 20,
2018.

ILPT also announced that the Compensation Committee of its Board of
Trustees has approved an amendment to ILPT's business management
agreement with The RMR Group LLC, the operating subsidiary of The RMR
Group Inc. (NASDAQ:RMR). Pursuant to the amendment, for periods
beginning on and after January 1, 2019, the business management
agreement will use the SNL U.S. Industrial REIT Index, rather than the
SNL U.S. REIT Equity Index, to calculate the benchmark return per share
for purposes of determining the incentive management fee, if any,
payable to RMR. Measurement periods prior to January 1, 2019 will
continue to use the legacy benchmark index. Please see ILPT's 2017
Annual Report on Form 10-K for the year-ended December 31, 2017 for
additional detail on the incentive management fee.

John Murray, ILPT's President and Chief Executive Officer, made the
following statement about today's announcement:

"We believe that the elimination of SIR's ownership control will improve
liquidity in ILPT's common shares and improve its trading multiple.
Also, based on feedback from analysts and investors that we have
received over the past year, management is of the view, and the
Compensation Committee of the Board of Trustees agreed, that the SNL
U.S. Industrial REIT Index is a more appropriate benchmark comparison
for ILPT."

Industrial Logistics Properties Trust is a real estate investment trust,
or REIT, that owns and leases industrial and logistics properties
throughout the United States. ILPT 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 FORWARD LOOKING STATEMENTS WITHIN THE
MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND
OTHER SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON
ILPT'S PRESENT BELIEFS AND EXPECTATIONS, BUT THESE STATEMENTS AND THE
IMPLICATIONS OF THESE STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT
OCCUR FOR VARIOUS REASONS, SOME OF WHICH ARE BEYOND ILPT'S CONTROL. FOR
EXAMPLE:

  • THIS NEWS RELEASE STATES ILPT'S BELIEF THAT THE ELIMINATION OF SIR'S
    OWNERSHIP CONTROL WILL IMPROVE ILPT'S LIQUIDITY AND TRADING MULTIPLE
    IN ITS COMMON SHARES. HOWEVER, THE LIQUIDITY AND TRADING MULTIPLE FOR
    ILPT'S COMMON SHARES WILL DEPEND ON NUMEROUS FACTORS, INCLUDING MARKET
    CONDITIONS AND OTHER FACTORS BEYOND ILPT'S CONTROL. THERE CAN BE NO
    ASSURANCE THAT ILPT'S COMMON SHARES WILL TRADE WITH IMPROVED LIQUIDITY
    OR WITH A HIGHER MULTIPLE AND THE TRADING LIQUIDITY AND MULTIPLE FOR
    ILPT'S COMMON SHARES MAY DECLINE.

FOR THESE REASONS, AMONG OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE
UNDUE RELIANCE UPON ANY FORWARD LOOKING STATEMENTS IN THIS PRESS
RELEASE. EXCEPT AS REQUIRED BY LAW, ILPT 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.

View Comments and Join the Discussion!