1
7958 South Chester Street, Centennial, CO
Square Feet: 167,917
United Launch Alliance Corporate Headquarters
Fourth Quarter 2017
Supplemental Operating and Financial Data
Select Income REIT Exhibit 99.2
All amounts in this report are unaudited.
7958 South Chester Street, Centennial, CO
Square Feet: 167,917
United Launch Alliance Corporate Headquarters
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 2
TABLE OF CONTENT
S
PAGE/EXHIBIT
CORPORATE INFORMATION
Company Profile 7
Investor Information 8
Research Coverage 9
FINANCIALS
Key Financial Data 11
Consolidated Balance Sheets 12
Consolidated Statements of Income 13
Consolidated Statements of Cash Flows 15
Consolidated Debt Summary 17
Consolidated Debt Maturity Schedule 19
Consolidated Leverage Ratios, Coverage Ratios and Public Debt Covenants 20
Consolidated Capital Expenditures Summary 22
Consolidated Property Acquisitions and Dispositions Information Since 1/1/17 to 12/31/17 23
Calculation of Property Net Operating Income (NOI) and Cash Basis NOI 24
Reconciliation of NOI to Same Property NOI and Calculation of Same Property Cash Basis NOI 26
Calculation of EBITDA and Adjusted EBITDA 27
Calculation of Funds from Operations (FFO) Attributed to SIR and Normalized FFO Attributed to SIR 28
Definitions of Certain Non-GAAP Financial Measures 29
PORTFOLIO INFORMATION
Consolidated Portfolio Summary by Owner 31
Consolidated Same Property Results of Operations 32
Consolidated Leasing Summary 34
Consolidated Occupancy and Leasing Analysis by Owner 35
Consolidated Tenant Diversity and Credit Characteristics 36
Tenants Representing 1% or More of Total Consolidated Annualized Rental Revenue 37
Consolidated Three Year Lease Expiration Schedule by Owner 38
Consolidated Portfolio Lease Expiration Schedule 39
Hawaii Land Rent Reset Summary 40
EXHIBIT A
Consolidated Property Detail 42
References and data in this Supplemental Operating and Financial Data report to "SIR", "we", "us" or "our" refer to and include data for Select Income REIT and its consolidated subsidiaries,
including Industrial Logistics Properties Trust and its consolidated subsidiaries, or ILPT, which was Select Income REIT's wholly owned subsidiary for all periods until January 17, 2018,
unless the context indicates otherwise.
TABLE OF CONTENTS
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 3
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THIS PRESENTATION OF SUPPLEMENTAL OPERATING AND FINANCIAL DATA 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 WE USE WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”,
“INTEND”, “PLAN”, “ESTIMATE”, “WILL”, “MAY” AND NEGATIVES OR DERIVATIVES OF THESE OR SIMILAR EXPRESSIONS, WE ARE MAKING FORWARD LOOKING STATEMENTS. THESE
FORWARD LOOKING STATEMENTS ARE BASED UPON OUR PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO
OCCUR AND MAY NOT OCCUR. FORWARD LOOKING STATEMENTS IN THIS REPORT RELATE TO VARIOUS ASPECTS OF OUR BUSINESS, INCLUDING:
• THE LIKELIHOOD THAT OUR TENANTS WILL PAY RENT OR BE NEGATIVELY AFFECTED BY CYCLICAL ECONOMIC CONDITIONS,
• THE LIKELIHOOD THAT OUR TENANTS WILL RENEW OR EXTEND THEIR LEASES OR THAT WE WILL BE ABLE TO OBTAIN REPLACEMENT TENANTS,
• OUR ACQUISITIONS OF PROPERTIES,
• OUR SALES OF PROPERTIES,
• OUR ABILITY TO COMPETE FOR ACQUISITIONS AND TENANCIES EFFECTIVELY,
• THE LIKELIHOOD THAT OUR RENTS WILL INCREASE WHEN WE RENEW OR EXTEND OUR LEASES, WHEN WE ENTER NEW LEASES OR WHEN OUR RENTS RESET, INCLUDING
RENT RESETS AT OUR SUBSIDIARY, INDUSTRIAL LOGISTICS PROPERTIES TRUST'S, OR ILPT'S, HAWAII PROPERTIES,
• OUR ABILITY TO PAY DISTRIBUTIONS TO OUR SHAREHOLDERS AND TO SUSTAIN THE AMOUNT OF SUCH DISTRIBUTIONS,
• THE FUTURE AVAILABILITY OF BORROWINGS UNDER OUR REVOLVING CREDIT FACILITY OR ILPT'S REVOLVING CREDIT FACILITY,
• OUR POLICIES AND PLANS REGARDING INVESTMENTS, FINANCINGS AND DISPOSITIONS,
• OUR ABILITY TO RAISE DEBT OR EQUITY CAPITAL,
• OUR ABILITY TO PAY INTEREST ON AND PRINCIPAL OF OUR DEBT,
• OUR ABILITY TO APPROPRIATELY BALANCE OUR USE OF DEBT AND EQUITY CAPITAL,
• OUR CREDIT RATINGS,
• OUR EXPECTATION THAT WE BENEFIT AS A RESULT OF THE RECENTLY COMPLETED INITIAL PUBLIC OFFERING BY ILPT AND FROM OUR CONTINUED OWNERSHIP INTEREST IN
AND OTHER RELATIONSHIPS WITH ILPT,
• OUR EXPECTATION THAT WE BENEFIT FROM OUR OWNERSHIP INTEREST IN AND OTHER RELATIONSHIPS WITH THE RMR GROUP INC., OR RMR INC.,
• OUR EXPECTATION THAT WE BENEFIT FROM OUR OWNERSHIP INTEREST IN AND OTHER RELATIONSHIPS WITH AFFILIATES INSURANCE COMPANY, OR AIC, AND FROM OUR
PARTICIPATION IN INSURANCE PROGRAMS ARRANGED BY AIC,
• OUR QUALIFICATION FOR TAXATION AS A REAL ESTATE INVESTMENT TRUST, OR REIT,
• THE CREDIT QUALITIES OF OUR TENANTS, AND
• OTHER MATTERS.
OUR ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY OUR FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS.
FACTORS THAT COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR FORWARD LOOKING STATEMENTS AND UPON OUR BUSINESS, RESULTS OF OPERATIONS, FINANCIAL
CONDITION, FUNDS FROM OPERATIONS, OR FFO, ATTRIBUTED TO SELECT INCOME REIT, OR SIR, NORMALIZED FUNDS FROM OPERATIONS, OR NORMALIZED FFO, ATTRIBUTED TO
SIR, NET OPERATING INCOME, OR NOI, CASH BASIS NOI, EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION, OR EBITDA, EBITDA AS ADJUSTED, OR
ADJUSTED EBITDA, CASH FLOWS, LIQUIDITY AND PROSPECTS INCLUDE, BUT ARE NOT LIMITED TO:
• THE IMPACT OF CONDITIONS AND CHANGES IN THE ECONOMY AND THE CAPITAL MARKETS ON US AND OUR TENANTS,
• COMPETITION WITHIN THE REAL ESTATE INDUSTRY, PARTICULARLY IN THOSE MARKETS IN WHICH OUR PROPERTIES ARE LOCATED,
• COMPLIANCE WITH, AND CHANGES TO, FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS, ACCOUNTING RULES, TAX LAWS AND SIMILAR MATTERS,
WARNING CONCERNING FORWARD LOOKING STATEMENTS
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 4
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)
• LIMITATIONS IMPOSED ON OUR BUSINESS AND OUR ABILITY TO SATISFY COMPLEX RULES IN ORDER FOR US TO QUALIFY FOR TAXATION AS A REIT FOR U.S. FEDERAL INCOME
TAX PURPOSES,
• ACTUAL AND POTENTIAL CONFLICTS OF INTEREST WITH OUR RELATED PARTIES, INCLUDING OUR MANAGING TRUSTEES, THE RMR GROUP LLC, OR RMR LLC, RMR INC., ILPT,
GOVERNMENT PROPERTIES INCOME TRUST, OR GOV, AIC, AND OTHERS AFFILIATED WITH THEM, AND
• ACTS OF TERRORISM, OUTBREAKS OF SO CALLED PANDEMICS OR OTHER MANMADE OR NATURAL DISASTERS BEYOND OUR CONTROL.
FOR EXAMPLE:
• OUR ABILITY TO MAKE FUTURE DISTRIBUTIONS TO OUR SHAREHOLDERS AND TO MAKE PAYMENTS OF PRINCIPAL AND INTEREST ON OUR INDEBTEDNESS DEPENDS UPON A
NUMBER OF FACTORS, INCLUDING OUR FUTURE EARNINGS, THE CAPITAL COSTS WE INCUR TO LEASE OUR PROPERTIES AND OUR WORKING CAPITAL REQUIREMENTS. WE
MAY BE UNABLE TO PAY OUR DEBT OBLIGATIONS OR TO MAINTAIN OUR CURRENT RATE OF DISTRIBUTIONS ON OUR COMMON SHARES AND FUTURE DISTRIBUTIONS MAY BE
REDUCED OR ELIMINATED,
• OUR ABILITY TO GROW OUR BUSINESS AND INCREASE OUR DISTRIBUTIONS DEPENDS IN LARGE PART UPON OUR ABILITY TO BUY PROPERTIES AND LEASE THEM FOR RENTS,
LESS THEIR PROPERTY OPERATING COSTS, THAT EXCEED OUR CAPITAL COSTS. WE MAY BE UNABLE TO IDENTIFY PROPERTIES THAT WE WANT TO ACQUIRE OR TO NEGOTIATE
ACCEPTABLE PURCHASE PRICES, ACQUISITION FINANCING OR LEASE TERMS FOR NEW PROPERTIES,
• CONTINGENCIES IN OUR ACQUISITION AND SALE AGREEMENTS MAY NOT BE SATISFIED AND OUR PENDING ACQUISITIONS AND SALES MAY NOT OCCUR, MAY BE DELAYED OR
THE TERMS OF SUCH TRANSACTIONS MAY CHANGE,
• RENTS THAT WE CAN CHARGE AT OUR PROPERTIES MAY DECLINE BECAUSE OF CHANGING MARKET CONDITIONS OR OTHERWISE,
• MOST OF ILPT'S HAWAII PROPERTIES ARE LANDS LEASED FOR RENTS THAT ARE PERIODICALLY RESET BASED ON THEN CURRENT FAIR MARKET VALUES. REVENUES FROM
ILPT'S PROPERTIES IN HAWAII HAVE GENERALLY INCREASED DURING OUR AND ILPT'S OWNERSHIP AS THE LEASES FOR THOSE PROPERTIES HAVE BEEN RESET OR RENEWED.
ALTHOUGH ILPT EXPECTS THAT RENTS FOR ITS HAWAII PROPERTIES WILL INCREASE IN THE FUTURE, IT CANNOT BE SURE THEY WILL. FUTURE RENTS FROM THESE
PROPERTIES COULD DECREASE OR NOT INCREASE TO THE EXTENT THEY HAVE IN THE PAST,
• WE MAY NOT SUCCEED IN FURTHER DIVERSIFYING OUR REVENUE SOURCES AND ANY DIVERSIFICATION WE MAY ACHIEVE MAY NOT MITIGATE OUR PORTFOLIO RISKS OR
IMPROVE THE SECURITY OF OUR REVENUES OR OUR OPERATING PERFORMANCE,
• ILPT'S POSSIBLE REDEVELOPMENT OF CERTAIN OF ITS HAWAII PROPERTIES MAY NOT BE REALIZED OR BE SUCCESSFUL,
• WE HAVE SUBSTANTIALLY COMPLETED A 35,000 SQUARE FOOT EXPANSION OF A BUILDING ON A PROPERTY WE OWN IN OKLAHOMA. AS OF DECEMBER 31, 2017, WE EXPECTED
TO SPEND AN ADDITIONAL $1.2 MILLION TO COMPLETE THIS EXPANSION. IN ADDITION, AS OF DECEMBER 31, 2017, WE HAD ESTIMATED UNSPENT LEASING RELATED
OBLIGATIONS OF $34.5 MILLION WHICH EXCLUDES THE ESTIMATED $1.2 MILLION OF EXPANSION COSTS. IT IS DIFFICULT TO ACCURATELY ESTIMATE DEVELOPMENT AND
TENANT IMPROVEMENT COSTS. THIS DEVELOPMENT PROJECT AND OUR UNSPENT LEASING RELATED OBLIGATIONS MAY COST MORE OR LESS AND MAY TAKE LONGER TO
COMPLETE THAN WE CURRENTLY EXPECT, AND WE MAY INCUR INCREASING AMOUNTS FOR THESE AND SIMILAR PURPOSES IN THE FUTURE,
• THE UNEMPLOYMENT RATE OR ECONOMIC CONDITIONS IN AREAS WHERE OUR PROPERTIES ARE LOCATED MAY BECOME WORSE IN THE FUTURE. SUCH CIRCUMSTANCES OR
OTHER CONDITIONS MAY REDUCE DEMAND FOR LEASING OFFICE AND INDUSTRIAL SPACE. IF THE DEMAND FOR LEASING OFFICE AND INDUSTRIAL SPACE IS REDUCED, WE
MAY BE UNABLE TO RENEW LEASES WITH OUR TENANTS AS LEASES EXPIRE OR ENTER INTO NEW LEASES AT RENTAL RATES AS HIGH AS EXPIRING RENTS AND OUR FINANCIAL
RESULTS MAY DECLINE,
• OUR BELIEF THAT THERE IS A LIKELIHOOD THAT TENANTS MAY RENEW OR EXTEND OUR LEASES WHEN THEY EXPIRE WHENEVER THEY HAVE MADE SIGNIFICANT
INVESTMENTS IN THE LEASED PROPERTIES, OR BECAUSE THOSE PROPERTIES MAY BE OF STRATEGIC IMPORTANCE TO THEM, MAY NOT BE REALIZED,
• SOME OF OUR TENANTS MAY NOT RENEW EXPIRING LEASES, AND WE MAY BE UNABLE TO OBTAIN NEW TENANTS TO MAINTAIN OR INCREASE THE HISTORICAL OCCUPANCY
RATES OF, OR RENTS FROM, OUR PROPERTIES,
• WE MAY INCUR SIGNIFICANT COSTS TO PREPARE A PROPERTY FOR A TENANT, PARTICULARLY FOR SINGLE TENANT PROPERTIES,
WARNING CONCERNING FORWARD LOOKING STATEMENTS (CONTINUED)
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 5
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)
• A FORMER TENANT OF TWO OF OUR PROPERTIES HAS FILED FOR BANKRUPTCY AND REJECTED ITS TWO LEASES WITH US. ALTHOUGH A SUBTENANT OF THAT FORMER TENANT AT
ONE OF THE TWO PROPERTIES IS NOW CONTRACTUALLY OBLIGATED TO PAY RENT TO US IN AN AMOUNT EQUAL TO THE RENT UNDER THE FORMER TENANT'S LEASE, THAT
SUBTENANT HAS CERTAIN RIGHTS TO TERMINATE ITS SUBLEASE, INCLUDING UPON ONE YEAR'S ADVANCE NOTICE,
• CONTINUED AVAILABILITY OF BORROWINGS UNDER OUR AND ILPT'S REVOLVING CREDIT FACILITIES IS SUBJECT TO US AND ILPT, AS THE CASE MAY BE, SATISFYING CERTAIN
FINANCIAL COVENANTS AND OTHER CREDIT FACILITY CONDITIONS THAT WE AND ILPT MAY BE UNABLE TO SATISFY,
• ACTUAL COSTS UNDER OUR AND ILPT'S REVOLVING CREDIT FACILITIES OR OTHER FLOATING RATE DEBT WILL BE HIGHER THAN LIBOR PLUS A PREMIUM BECAUSE OF FEES AND
EXPENSES ASSOCIATED WITH SUCH DEBT,
• WE MAY BE UNABLE TO REPAY OUR DEBT OBLIGATIONS WHEN THEY BECOME DUE,
• THE MAXIMUM BORROWING AVAILABILITY UNDER OUR CREDIT FACILITY MAY BE INCREASED TO UP TO $1.85 BILLION IN CERTAIN CIRCUMSTANCES AND THE MAXIMUM BORROWING
AVAILABILITY UNDER ILPT'S REVOLVING CREDIT FACILITY MAY BE INCREASED TO UP TO $1.5 BILLION IN CERTAIN CIRCUMSTANCES; HOWEVER, INCREASING THE MAXIMUM
BORROWING AVAILABILITY UNDER OUR CREDIT FACILITY OR ILPT'S REVOLVING CREDIT FACILITY IS SUBJECT TO US AND ILPT, AS THE CASE MAY BE, OBTAINING ADDITIONAL
COMMITMENTS FROM LENDERS, WHICH MAY NOT OCCUR,
• WE HAVE THE OPTION TO EXTEND THE MATURITY DATE OF OUR REVOLVING CREDIT FACILITY, AND ILPT HAS THE OPTION TO EXTEND THE MATURITY DATE OF ITS REVOLVING
CREDIT FACILITY, UPON PAYMENT OF A FEE AND MEETING OTHER CONDITIONS, RESPECTIVELY; HOWEVER, THE APPLICABLE CONDITIONS MAY NOT BE MET,
• WE RECEIVED AN ASSESSMENT FROM THE STATE OF WASHINGTON FOR REAL ESTATE EXCISE TAX, INTEREST AND PENALTIES OF $2.8 MILLION ON CERTAIN PROPERTIES WE
ACQUIRED IN CONNECTION WITH OUR ACQUISITION OF COLE CORPORATE INCOME TRUST, INC. IN JANUARY 2015. ALTHOUGH WE BELIEVE WE ARE NOT LIABLE FOR THIS TAX AND
ARE DISPUTING THIS ASSESSMENT, WE MAY NOT SUCCEED IN HAVING ALL OR ANY PART OF THIS ASSESSMENT NULLIFIED,
• THE BUSINESS AND PROPERTY MANAGEMENT AGREEMENTS BETWEEN US AND RMR LLC HAVE CONTINUING 20 YEAR TERMS. HOWEVER, THOSE AGREEMENTS PERMIT EARLY
TERMINATION IN CERTAIN CIRCUMSTANCES. ACCORDINGLY, WE CANNOT BE SURE THAT THESE AGREEMENTS WILL REMAIN IN EFFECT FOR CONTINUING 20 YEAR TERMS,
• WE BELIEVE THAT OUR RELATIONSHIPS WITH OUR RELATED PARTIES, INCLUDING RMR LLC, RMR INC., ILPT, GOV, AIC AND OTHERS AFFILIATED WITH THEM MAY BENEFIT US AND
PROVIDE US WITH COMPETITIVE ADVANTAGES IN OPERATING AND GROWING OUR BUSINESS. HOWEVER, THE ADVANTAGES WE BELIEVE WE MAY REALIZE FROM THESE
RELATIONSHIPS MAY NOT MATERIALIZE,
• RMR INC. MAY REDUCE THE AMOUNT OF DISTRIBUTIONS TO ITS SHAREHOLDERS, INCLUDING US,
• DISTRIBUTIONS WE MAY RECEIVE FROM ILPT MAY BE LESS THAN EXPECTED, AND
• THE PREMIUMS USED TO DETERMINE THE INTEREST RATE PAYABLE ON OUR AND ILPT'S REVOLVING CREDIT FACILITIES, THE FACILITY FEE PAYABLE ON OUR REVOLVING CREDIT
FACILITY AND THE UNUSED FEE PAYABLE ON ILPT'S REVOLVING CREDIT FACILITY ARE BASED ON OUR CREDIT RATINGS AND ILPT'S LEVERAGE, RESPECTIVELY. FUTURE CHANGES
IN OUR CREDIT RATINGS AND ILPT'S LEVERAGE MAY CAUSE THE INTEREST AND FEES WE AND ILPT PAY TO INCREASE, RESPECTIVELY.
CURRENTLY UNEXPECTED RESULTS COULD OCCUR DUE TO MANY DIFFERENT CIRCUMSTANCES, SOME OF WHICH ARE BEYOND OUR CONTROL, SUCH AS ACTS OF TERRORISM,
NATURAL DISASTERS, CHANGES IN OUR TENANTS’ FINANCIAL CONDITIONS, THE MARKET DEMAND FOR LEASED SPACE OR CHANGES IN CAPITAL MARKETS OR THE ECONOMY
GENERALLY. MANY OF THESE FACTORS ALSO APPLY TO ILPT AND ITS BUSINESS, OPERATIONS, LIQUIDITY AND FINANCIAL CONDITION, THE REALIZATION OF WHICH COULD
MATERIALLY AND ADVERSELY AFFECT US, PARTICULARLY IF ILPT IS UNABLE TO MAKE DISTRIBUTIONS TO ITS SHAREHOLDERS, INCLUDING US.
THE INFORMATION CONTAINED IN OUR FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER THE CAPTION "RISK FACTORS" IN OUR PERIODIC
REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE DIFFERENCES FROM OUR FORWARD LOOKING STATEMENTS. OUR FILINGS
WITH THE SEC ARE AVAILABLE ON THE SEC’S WEBSITE AT WWW.SEC.GOV.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON OUR FORWARD LOOKING STATEMENTS.
EXCEPT AS REQUIRED BY LAW, WE DO NOT INTEND TO UPDATE OR CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR
OTHERWISE.
WARNING CONCERNING FORWARD LOOKING STATEMENTS (CONTINUED)
6
CORPORATE INFORMATION
6
445 Jan Davis Drive, Huntsville, AL
Square Feet: 57,420
Digium, Inc. Corporate Headquarters
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 7
COM
PAN
Y PROFIL
E
Corporate Headquarters:
Two Newton Place
255 Washington Street, Suite 300
Newton, MA 02458-1634
(t) (617) 796-8303
(f) (617) 796-8335
Stock Exchange Listing:
Nasdaq
Trading Symbol:
Common Shares: SIR
Issuer Ratings:
Moody’s: Baa3
Standard & Poor’s: BBB-
The Company:
SIR is a real estate investment trust, or REIT, which owns properties that are primarily leased to single tenants. As of
December 31, 2017, we owned 366 buildings, leasable land parcels and easements with approximately 45.5 million
rentable square feet located in 36 states. As of December 31, 2017, our subsidiary, Industrial Logistics Properties Trust,
or ILPT, owned 266 of our buildings, leasable land parcels and easements with approximately 28.5 million rentable square
feet, including 226 buildings, leasable land parcels and easements with approximately 16.8 million rentable square feet
which are primarily leasable industrial and commercial lands located in Hawaii. ILPT was our wholly owned subsidiary
until January 17, 2018, when it completed an initial public offering, or IPO, of its common shares and became a publicly
traded REIT. We remain ILPT's largest shareholder and, as of the date hereof, we own 45.0 million, or approximately
69.2%, of ILPT's outstanding common shares. We have been investment grade rated since 2014, and we are included
in the Russell 2000® Index and the MSCI US REIT Index.
COMPANY PROFILE
Management:
SIR is managed by The RMR Group LLC, the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR). RMR is an
alternative asset management company that was founded in 1986 to manage real estate companies and related
businesses. RMR primarily provides management services to five publicly owned REITs and three real estate related
operating businesses. In addition to managing SIR, RMR manages Hospitality Properties Trust, a REIT that owns hotels
and travel centers, Senior Housing Properties Trust, a REIT that primarily owns healthcare, senior living and medical
office buildings, Government Properties Income Trust, a REIT that primarily owns properties throughout the U.S. that
are majority leased to the U.S. and state governments and office properties in the metropolitan Washington, D.C. area
that are leased to government and private sector tenants, and ILPT, a REIT and our majority owned subsidiary that owns
and leases industrial and logistics properties. RMR also provides management services to TravelCenters of America
LLC, a publicly traded operator of travel centers along the U.S. Interstate Highway System, convenience stores and
restaurants, Five Star Senior Living Inc., a publicly traded operator of senior living communities, and Sonesta International
Hotels Corporation, a privately owned franchisor and operator of hotels and cruise ships. RMR also manages publicly
traded securities of real estate companies, a publicly traded mortgage REIT and private commercial real estate debt
funds through wholly owned SEC registered investment advisory subsidiaries. As of December 31, 2017, RMR had $30.0
billion of real estate assets under management and the combined RMR managed companies had approximately $11
billion of annual revenues, over 1,400 properties and approximately 52,000 employees. We believe that being managed
by RMR is a competitive advantage for SIR because of RMR’s depth of management and experience in the real estate
industry. We also believe RMR provides management services to us at costs that are lower than we would have to pay
for similar quality services.
(1) Includes 226 buildings, leasable land parcels and easements with approximately 16.8 million square feet which are primarily
leasable industrial and commercial lands located in Hawaii which are owned by ILPT.
(2) See page 28 for the calculation of FFO attributed to SIR and Normalized FFO attributed to SIR and a reconciliation of net
income attributed to SIR determined in accordance with U.S. generally accepted accounting principles, or GAAP, to those
amounts.
Key Data (as of December 31, 2017):
(dollars and sq. ft. in 000s)
Total buildings (1) 366
Total sq. ft. 45,496
Percent leased 96.2%
Q4 2017 total revenues $ 117,925
Q4 2017 net income attributed to SIR $ 2,075
Q4 2017 Normalized FFO attributed to
SIR (2) $ 34,764
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 8
INVES
TOR INFORM
ATIO
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INVESTOR INFORMATION
Board of Trustees
Donna D. Fraiche William A. Lamkin Jeffrey P. Somers
Independent Trustee Independent Trustee Independent Trustee
Adam D. Portnoy Barry M. Portnoy
Managing Trustee Managing Trustee
Senior Management
David M. Blackman John C. Popeo
President and Chief Operating Officer Chief Financial Officer and Treasurer
Contact Information
Investor Relations Inquiries
Select Income REIT Financial inquiries should be directed to John C. Popeo,
Two Newton Place Chief Financial Officer and Treasurer, at (617) 796-8303
255 Washington Street, Suite 300 or jpopeo@sirreit.com.
Newton, MA 02458-1634
(t) (617) 796-8303 Investor and media inquiries should be directed to
(f) (617) 796-8335 Christopher Ranjitkar, Director, Investor Relations,
(e-mail) info@sirreit.com at (617) 796-8320 or cranjitkar@sirreit.com.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 9
RESEARCH COVERAG
E
RESEARCH COVERAGE
Equity Research Coverage
Bank of America / Merrill Lynch
James Feldman
(646) 855-5808
james.feldman@baml.com
FBR Capital Markets & Co.
Bryan Maher
(646) 885-5423
bmaher@fbr.com
JMP Securities
Mitch Germain
(212) 906-3546
mgermain@jmpsecurities.com
Morgan Stanley
Vikram Malhotra
(212) 761-7064
vikram.malhotra@morganstanley.com
RBC Capital Markets
Michael Carroll
(440) 715-2649
michael.carroll@rbccm.com
SIR is followed by the analysts and its credit is rated by the rating agencies listed above. Please note that any opinions,
estimates or forecasts regarding SIR’s performance made by these analysts or agencies do not represent opinions,
forecasts or predictions of SIR or its management. SIR does not by its reference above imply its endorsement of or
concurrence with any information, conclusions or recommendations provided by any of these analysts or agencies.
Rating Agencies
Moody’s Investors Service
Griselda Bisono
(212) 553-4985
griselda.bisono@moodys.com
Standard & Poor’s
Michael Souers
(212) 438-2508
michael.souers@standardandpoors.com
10
FINANCIALS
10
2300 & 2400 Yorkmont Road, Charlotte, NC
Square Feet: 284,039
Compass Group U.S. Headquarters
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 11
KE
Y FINANCIA
L D
AT
A KEY FINANCIAL DATA
(dollars in thousands, except per share data)
As of and For the Three Months Ended
12/31/2017 (1) 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Selected Balance Sheet Data:
Total gross assets (2) $ 5,617,279 $ 4,972,896 $ 4,949,024 $ 4,876,465 $ 4,882,310
Total assets $ 5,303,030 $ 4,677,395 $ 4,673,590 $ 4,614,065 $ 4,639,682
Total liabilities $ 3,311,211 $ 2,655,096 $ 2,642,336 $ 2,562,862 $ 2,565,720
Total shareholders' equity $ 1,991,819 $ 2,022,299 $ 2,031,254 $ 2,051,203 $ 2,073,962
Selected Income Statement Data:
Total revenues $ 117,925 $ 118,014 $ 115,870 $ 116,294 $ 114,835
Net income $ 2,075 $ 31,442 $ 26,661 $ 6,728 $ 24,222
NOI (3) $ 92,434 $ 91,876 $ 91,511 $ 92,584 $ 90,551
Adjusted EBITDA (4) $ 59,818 $ 85,695 $ 85,534 $ 73,797 $ 84,444
FFO attributed to SIR (5) $ 36,977 $ 66,155 $ 61,207 $ 40,468 $ 63,228
Normalized FFO attributed to SIR (5) $ 34,764 $ 60,677 $ 62,127 $ 52,361 $ 63,463
Per Common Share Data:
Net income attributed to SIR - basic and diluted $ 0.02 $ 0.35 $ 0.30 $ 0.08 $ 0.27
FFO attributed to SIR - basic (5) $ 0.41 $ 0.74 $ 0.69 $ 0.45 $ 0.71
FFO attributed to SIR - diluted (5) $ 0.41 $ 0.74 $ 0.68 $ 0.45 $ 0.71
Normalized FFO attributed to SIR - basic and diluted (5) $ 0.39 $ 0.68 $ 0.70 $ 0.59 $ 0.71
Dividends:
Annualized dividends paid per share $ 2.04 $ 2.04 $ 2.04 $ 2.04 $ 2.04
Annualized dividend yield (at end of period) (6) 8.1% 8.7% 8.5% 7.9% 8.1%
Normalized FFO payout ratio (5) 130.8% 75.0% 72.9% 86.4% 71.8%
(1) Net income and FFO attributed to SIR include business management incentive fee expense of $22,281 for the three months ended December 31, 2017. Adjusted EBITDA and Normalized FFO attributed
to SIR include business management incentive fee expense of $25,569 for the three months ended December 31, 2017.
(2) Total gross assets is total assets plus accumulated depreciation.
(3) See page 24 for the calculation of NOI and a reconciliation of net income determined in accordance with GAAP to that amount.
(4) See page 27 for the calculation of Adjusted EBITDA and a reconciliation of net income determined in accordance with GAAP to that amount.
(5) See page 28 for the calculation of FFO attributed to SIR and Normalized FFO attributed to SIR and a reconciliation of net income attributed to SIR determined in accordance with GAAP to those amounts.
Excluding business management incentive fee expense of $25,569 for the the three months ended December 31, 2017, Normalized FFO attributed to SIR per share and the Normalized FFO payout ratio
would have been $0.67 and 76.1%, respectively.
(6) Annualized dividend yield is the annualized dividend paid during the period divided by the closing price of our common shares at the end of the period.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 12
CONSOLID
ATED BALANCE SHEET
S
CONSOLIDATED BALANCE SHEETS
December 31,
2017 2016
ASSETS
Real estate properties:
Land $ 1,041,767 $ 1,038,686
Buildings and improvements 3,178,098 3,103,734
4,219,865 4,142,420
Accumulated depreciation (314,249) (242,628)
3,905,616 3,899,792
Properties held for sale 5,829 —
Acquired real estate leases, net 477,577 506,298
Cash and cash equivalents 658,719 22,127
Restricted cash 178 44
Rents receivable, including straight line rents of $122,010 and $117,008, respectively,
net of allowance for doubtful accounts of $1,396 and $873, respectively 127,672 124,089
Deferred leasing costs, net 14,295 10,051
Other assets, net 113,144 77,281
Total assets $ 5,303,030 $ 4,639,682
LIABILITIES AND SHAREHOLDERS' EQUITY
Unsecured revolving credit facility $ — $ 327,000
ILPT revolving credit facility 750,000 —
Unsecured term loan, net 348,870 348,373
Senior unsecured notes, net 1,777,425 1,430,300
Mortgage notes payable, net 210,785 245,643
Accounts payable and other liabilities 101,352 101,605
Assumed real estate lease obligations, net 68,783 77,622
Rents collected in advance 15,644 18,815
Security deposits 8,346 11,887
Due to related persons 30,006 4,475
Total liabilities 3,311,211 2,565,720
Commitments and contingencies
Shareholders' equity:
Common shares of beneficial interest, $.01 par value: 125,000,000 shares authorized;
89,487,371 and 89,427,869 shares issued and outstanding, respectively 895 894
Additional paid in capital 2,180,896 2,179,669
Cumulative net income 508,213 441,307
Cumulative other comprehensive income 52,665 20,472
Cumulative common distributions (750,850) (568,380)
Total shareholders' equity 1,991,819 2,073,962
Total liabilities and shareholders' equity $ 5,303,030 $ 4,639,682
(dollars in thousands, except per share data)
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 13
CONSOLID
ATED S
TA
TEMENTS OF INCOM
E
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended December 31, For the Year Ended December 31,
2017 2016 2017 2016
Revenues:
Rental income $ 99,265 $ 96,503 $ 392,285 $ 387,015
Tenant reimbursements and other income 18,660 18,332 75,818 74,992
Total revenues 117,925 114,835 468,103 462,007
Expenses:
Real estate taxes 10,963 11,314 44,131 42,879
Other operating expenses 14,528 12,970 55,567 52,957
Depreciation and amortization 34,902 33,522 137,672 133,762
Acquisition and transaction related costs 1,075 235 1,075 306
General and administrative (1) 30,160 6,699 54,818 28,602
Write-off of straight line rents receivable, net (2) — — 12,517 —
Loss on asset impairment (2) — — 4,047 —
Loss on impairment of real estate assets — 5,484 229 5,484
Total expenses 91,628 70,224 310,056 263,990
Operating income 26,297 44,611 158,047 198,017
Dividend income 397 396 1,587 1,268
Interest expense (including net amortization of debt issuance costs, premiums
and discounts of $1,494, $1,384, $6,182 and $5,508, respectively) (24,592) (20,737) (92,870) (82,620)
Income before income tax expense and equity in earnings of an investee 2,102 24,270 66,764 116,665
Income tax expense (102) (78) (466) (448)
Equity in earnings of an investee 75 30 608 137
Net income 2,075 24,222 66,906 116,354
Net income allocated to noncontrolling interest — — — (33)
Net income attributed to SIR $ 2,075 $ 24,222 $ 66,906 $ 116,321
Weighted average common shares outstanding - basic 89,381 89,331 89,351 89,304
Weighted average common shares outstanding - diluted 89,392 89,335 89,370 89,324
Net income attributed to SIR per common share - basic and diluted $ 0.02 $ 0.27 $ 0.75 $ 1.30
Additional Data:
General and administrative expenses (1) / total revenues 25.6% 5.8% 11.7% 6.2%
General and administrative expenses (1) / total assets (at end of period) 0.6% 0.1% 1.0% 0.6%
Non-cash straight line rent adjustments included in rental income (3) $ 4,608 $ 5,690 $ 20,969 $ 24,744
Lease value amortization included in rental income (3) $ 546 $ 434 $ 2,054 $ 1,732
Lease termination fees included in rental income (3) $ 212 $ — $ 313 $ —
Non-cash amortization included in other operating expenses (4) $ 213 $ 213 $ 852 $ 852
Non-cash amortization included in general and administrative expenses (4) $ 344 $ 344 $ 1,378 $ 1,378
(dollars and shares in thousands, except per share data)
See accompanying notes on the following page.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 14
CONSOLID
ATED S
TA
TEMENTS OF INCOME (CONTINUED
)
CONSOLIDATED STATEMENTS OF INCOME (CONTINUED)
(dollars in thousands, except per share data)
(1) General and administrative expenses include business management incentive fee expense of $22,281 for the three months ended December 31, 2017 and $25,569 for the year ended
December 31, 2017.
(2) In March 2017, one of our tenants filed for bankruptcy and rejected two leases with us: (i) a lease for a property located in Huntsville, AL with approximately 1.4 million rentable square feet
and an original lease term until August 2032 and (ii) a lease for a property in Hanover, PA with approximately 502,000 rentable square feet and an original lease term until September 2028.
The Huntsville, AL property is occupied by a subtenant of our former tenant who is now contractually obligated to pay rent to us in an amount equal to the rent under the former tenant's lease
for a term that runs concurrently with the former tenant’s original lease term, but is subject to certain tenant termination rights. We expect that the lost rents plus carrying costs, such as real
estate taxes, insurance, security and other operating costs, from a fully vacant Hanover, PA property may total approximately $3,800 per year. The bankruptcy court overseeing this matter
granted us permission to offset our damages with a $3,739 security deposit held from the bankrupt former tenant with respect to the Hanover, PA property. During the three months ended
March 31, 2017, we recorded a non-cash charge of $12,517 to write off straight line rents receivable (net of the $3,739 security deposit) related to the rejected leases with the bankrupt
former tenant at both properties plus an impairment charge of $4,047 related to the write-off of lease intangibles related to the property located in Hanover, PA.
(3) We report rental income on a straight line basis over the terms of the respective leases; accordingly, rental income includes non-cash straight line rent adjustments. Rental income also
includes non-cash amortization of intangible lease assets and liabilities and lease termination fees, if any.
(4) We recorded a liability for the amount by which the estimated fair value for accounting purposes exceeded the price we paid for our investment in RMR Inc. common stock in June 2015. This
liability is being amortized on a straight line basis through December 31, 2035 as an allocated reduction to business management fees and property management fees expense, which are
included in general and administrative and other operating expenses, respectively.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 15
CONSOLID
ATED S
TA
TEMENTS OF CASH FLOW
S
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Year Ended December 31,
2017 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 66,906 $ 116,354
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 80,239 78,151
Net amortization of debt issuance costs, premiums and discounts 6,182 5,508
Amortization of acquired real estate leases and assumed real estate lease obligations 54,061 52,691
Amortization of deferred leasing costs 1,591 1,413
Write-off of straight line rents and provision for losses on rents receivable 13,104 496
Straight line rental income (20,969) (24,744)
Impairment losses 4,276 5,484
Other non-cash expenses, net (651) (607)
Equity in earnings of an investee (608) (137)
Change in assets and liabilities:
Restricted cash — 1,127
Rents receivable 543 (534)
Deferred leasing costs (5,239) (4,485)
Other assets (3,042) (883)
Accounts payable and other liabilities 3,934 (572)
Rents collected in advance (3,171) 2,520
Security deposits 198 42
Due to related persons 25,531 735
Net cash provided by operating activities 222,885 232,559
CASH FLOWS FROM INVESTING ACTIVITIES:
Real estate acquisitions (117,468) (18,046)
Real estate improvements (15,162) (8,862)
Cash placed in escrow for investing activities (134) —
Net cash used in investing activities (132,764) (26,908)
(dollars in thousands)
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 16
CONSOLID
ATED S
TA
TEMENTS OF CASH FLOWS (CONTINUED
)
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
For the Year Ended December 31,
2017 2016
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of senior unsecured notes, after discounts 345,394 —
Repayment of mortgage notes payable (34,223) (40,525)
Borrowings under revolving credit facilities 1,012,000 205,000
Repayments of revolving credit facility (589,000) (181,000)
Payment of debt issuance costs (4,921) —
Distributions to common shareholders (182,470) (180,570)
Repurchase of common shares (309) (331)
Purchase of noncontrolling interest — (3,908)
Distributions to noncontrolling interest — (66)
Net cash provided by (used) in financing activities 546,471 (201,400)
Increase in cash and cash equivalents 636,592 4,251
Cash and cash equivalents at beginning of period 22,127 17,876
Cash and cash equivalents at end of period $ 658,719 $ 22,127
(dollars in thousands)
SUPPLEMENTAL DISCLOSURES:
Interest paid $ 84,589 $ 76,930
Income taxes paid $ 348 $ 428
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 17
CONSOLID
ATED DEBT SUMMA
RY
CONSOLIDATED DEBT SUMMARY
(dollars in thousands)
Coupon Interest Principal Maturity Due at Years to
Rate (1) Rate (2) Balance (3) Date Maturity Maturity
As of December 31, 2017:
Unsecured Floating Rate Debt:
SIR revolving credit facility (LIBOR + 105 bps) (4) (6) 2.526% 2.526% $ — 3/29/2019 $ — 1.2
Term loan (LIBOR + 115 bps) (5) 2.511% 2.511% 350,000 3/31/2020 350,000 2.2
ILPT revolving credit facility (LIBOR + 140 bps) (7) 2.890% 2.890% 750,000 12/29/2021 750,000 4.0
Subtotal / weighted average unsecured floating rate debt 2.769% 2.769% 1,100,000 1,100,000 3.4
Unsecured Fixed Rate Debt:
Senior notes due 2018 (8) 2.850% 2.985% 350,000 2/1/2018 350,000 0.1
Senior notes due 2020 3.600% 3.775% 400,000 2/1/2020 400,000 2.1
Senior notes due 2022 4.150% 4.360% 300,000 2/1/2022 300,000 4.1
Senior notes due 2024 4.250% 4.471% 350,000 5/15/2024 350,000 6.4
Senior notes due 2025 4.500% 4.755% 400,000 2/1/2025 400,000 7.1
Subtotal / weighted average unsecured fixed rate debt 3.872% 4.072% 1,800,000 1,800,000 4.0
Secured Fixed Rate Debt:
One property (one building) in Philadelphia, PA (9) 3.361% 4.160% 41,000 8/3/2020 39,635 2.6
One property (one building) in Chester, VA (10) 3.990% 3.480% 48,750 11/1/2020 48,750 2.8
One property (three buildings) in Seattle, WA 3.550% 3.790% 71,000 5/1/2023 71,000 5.3
One property (one building) in Chicago, IL 3.700% 3.590% 50,000 6/1/2023 50,000 5.4
Subtotal / weighted average secured fixed rate debt 3.651% 3.743% 210,750 209,385 4.2
Total / weighted average debt 3.467% 3.589% $ 3,110,750 $ 3,109,385 3.8
See accompanying notes on the following page.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 18
CONSOLID
ATED DEBT SUMMA
RY
(CONTINUED
)
CONSOLIDATED DEBT SUMMARY(CONTINUED)
(dollars in thousands)
(1) Reflects the interest rate stated in, or determined pursuant to, the contract terms.
(2) Includes the effect of interest rate protection and mark to market accounting for certain mortgages and discounts on senior unsecured notes. Excludes upfront transaction costs.
(3) Principal balance excludes unamortized premiums, discounts and certain issuance costs related to these debts. Total debt outstanding as of December 31, 2017, net of unamortized
premiums, discounts and certain issuance costs totaling $23,670, was $3,087,080.
(4) We have a $750,000 revolving credit facility which has a maturity date of March 29, 2019, interest payable on borrowings of LIBOR plus 105 basis points and a facility fee of 20 basis
points. Both the interest rate premium and the facility fee for our revolving credit facility are subject to adjustment based on changes to our credit ratings. Upon the payment of an
extension fee and meeting other conditions, we have the option to extend the maturity date to March 29, 2020. Principal balance represents the amount outstanding on our $750,000
revolving credit facility at December 31, 2017. Interest rate is as of December 31, 2017 and excludes the 20 basis points facility fee.
(5) As of December 31, 2017, we had a $350,000 term loan with a maturity date of March 31, 2020 and an interest rate on the amount outstanding of LIBOR plus 115 basis points. The
interest rate premium for our term loan was subject to adjustment based on changes to our credit ratings. Principal balance represents the amount outstanding on our $350,000 term
loan at December 31, 2017. Interest rate is as of December 31, 2017. We repaid this term loan on January 31, 2018 with cash on hand at December 31, 2017 and borrowings under our
revolving credit facility.
(6) The maximum borrowing availability under our credit facility may be increased to up to $1,850,000 in certain circumstances.
(7) ILPT has a $750,000 revolving credit facility which initially had a maturity date of March 29, 2018, interest payable on borrowings of LIBOR plus 140 basis points as of December 31,
2017 and a quarterly commitment fee varying from 0.15% to 0.25% per annum depending upon the amount of the unused portion of its revolving credit facility. The interest rate
premium for ILPT's revolving credit facility is subject to adjustment based on changes to ILPT's leverage. After the completion of ILPT's IPO in January 2018, ILPT's $750,000 secured
revolving credit facility became a $750,000 unsecured revolving credit facility and its maturity date was extended to December 29, 2021. ILPT has the option to extend the maturity date
of its revolving credit facility for two six month periods, subject to payment of extension fees and satisfaction of other conditions. Principal balance represents the amount outstanding on
ILPT's $750,000 revolving credit facility at December 31, 2017. Interest rate is as of December 31, 2017 and excludes the quarterly commitment fee. The maximum borrowing
availability under ILPT's revolving credit facility may be increased to up to $1,500,000 in certain circumstances.
(8) On January 2, 2018, we redeemed at par plus accrued interest our $350,000 senior unsecured notes due February 1, 2018 with cash on hand at December 31, 2017.
(9) Interest is payable at a rate equal to LIBOR plus a premium. The interest charge has been fixed by a cash flow hedge which sets the interest rate at approximately 4.16% until August 3,
2020, which is the maturity date of the mortgage note. Coupon rate is as of December 31, 2017.
(10) Represents a mortgage note on a property owned by ILPT.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 19
CONSOLID
ATED DEBT M
ATURIT
Y SCHEDUL
E
CONSOLIDATED DEBT MATURITY SCHEDULE
(dollars in thousands)
Scheduled Principal Payments as of December 31, 2017
Unsecured Unsecured Secured
Floating Fixed Fixed
Year Rate Debt Rate Debt Rate Debt Total (5)
2018 $ — $ 350,000 (1) $ 228 $ 350,228
2019 — (2) — 710 710
2020 350,000 (3) 400,000 88,812 838,812
2021 750,000 (4) — — 750,000
2022 — 300,000 — 300,000
2023 — — 121,000 121,000
2024 — 350,000 — 350,000
2025 — 400,000 — 400,000
Total $ 1,100,000 $ 1,800,000 $ 210,750 $ 3,110,750
Percent 35.4% 57.9% 6.7% 100.0%
(1) On January 2, 2018, we redeemed at par plus accrued interest our $350,000 senior unsecured notes due February 1, 2018 with cash on hand at December 31, 2017.
(2) Represents the amount outstanding under our $750,000 revolving credit facility at December 31, 2017. We have a $750,000 revolving credit facility which has a maturity date of
March 29, 2019, interest payable on borrowings of LIBOR plus 105 basis points and a facility fee of 20 basis points. Both the interest rate premium and the facility fee for our
revolving credit facility are subject to adjustment based on changes to our credit ratings. Upon the payment of an extension fee and meeting other conditions, we have the option
to extend the maturity date to March 29, 2020.
(3) As of December 31, 2017, we had a $350,000 term loan with a maturity date of March 31, 2020 and an interest rate on the amount outstanding of LIBOR plus 115 basis points.
The interest rate premium for our term loan was subject to adjustment based on changes to our credit ratings. We repaid this term loan on January 31, 2018 with cash on hand
at December 31, 2017 and borrowings under our revolving credit facility.
(4) Represents the amount outstanding under ILPT's $750,000 revolving credit facility at December 31, 2017. ILPT has a $750,000 revolving credit facility which initially had a
maturity date of March 29, 2018, interest payable on borrowings of LIBOR plus 140 basis points as of December 31, 2017 and a quarterly commitment fee varying from 0.15% to
0.25% per annum depending upon the amount of the unused portion of its revolving credit facility. The interest rate premium for ILPT's revolving credit facility is subject to
adjustment based on changes to ILPT's leverage. After the completion of ILPT's IPO in January 2018, ILPT's $750,000 secured revolving credit facility became a $750,000
unsecured revolving credit facility and its maturity date was extended to December 29, 2021. ILPT has the option to extend the maturity date of its revolving credit facility for two
six month periods, subject to payment of extension fees and satisfaction of other conditions.
(5) Total debt outstanding as of December 31, 2017, net of unamortized premiums, discounts and certain issuance costs totaling $23,670, was $3,087,080.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 20
CONSOLID
ATED LEVERAGE R
ATIOS, COVERAGE R
ATIOS
AND PUBLIC DEBT COVENANT
S
CONSOLIDATED LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS
As of and For the Three Months Ended
12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Leverage Ratios:
Total debt (book value) (1) / total gross assets (2) 55.0% 49.4% 49.2% 48.5% 48.2%
Total debt (book value) (1) / gross book value of real estate assets (3) 63.5% 50.5% 50.6% 49.9% 49.6%
Total debt (book value) (1) / total market capitalization (4) 57.9% 53.9% 53.1% 50.7% 51.1%
Secured debt (book value) (1) / total assets 4.0% 4.9% 5.2% 5.3% 5.3%
Variable rate debt (book value) (1) / total debt (book value) (1) 35.6% 18.4% 17.1% 29.2% 28.7%
Coverage Ratios:
Adjusted EBITDA (5) / interest expense 2.4x 3.5x 3.8x 3.5x 4.1x
Total debt (book value) (1) / annualized Adjusted EBITDA (5) 12.9x 7.2x 7.1x 8.0x 7.0x
Public Debt Covenants:
Total debt / adjusted total assets (6) (maximum 60%) 55.4% 50.0% 49.9% 49.3% 49.2%
Secured debt / adjusted total assets (6) (maximum 40%) 17.1% 4.6% 5.0% 5.1% 5.1%
Consolidated income available for debt service (7) / annual debt service (minimum 1.50x) 3.4x 3.8x 3.7x 4.1x 4.4x
Total unencumbered assets (6) / unsecured debt (minimum 150%) 178.9% 199.9% 201.0% 203.7% 203.9%
(1) Debt amounts are net of unamortized premiums, discounts and certain issuance costs.
(2) Total gross assets is total assets plus accumulated depreciation.
(3) Gross book value of real estate assets is real estate properties at cost, plus certain acquisition costs, if any, before depreciation and purchase price allocations, less impairment writedowns, if any.
(4) Total market capitalization is total debt plus the market value of our common shares at the end of each period.
(5) See page 27 for the calculation of Adjusted EBITDA and for a reconciliation of net income determined in accordance with GAAP to that amount.
(6) Adjusted total assets and total unencumbered assets include original cost of real estate assets calculated in accordance with GAAP and exclude depreciation and amortization, accounts receivable, other
intangible assets and impairment writedowns, if any.
(7) Consolidated income available for debt service is earnings from operations excluding interest expense, depreciation and amortization, loss on asset impairment, gains and losses on early extinguishment of debt,
and gains and losses on sales of properties, if any, determined together with debt service on a pro forma basis for the four consecutive fiscal quarters most recently ended.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 21
CONSOLID
ATED LEVERAGE R
ATIOS, COVERAGE R
ATIOS
AND PUBLIC DEB
T
COVENANTS (CONTINUED
)
CONSOLIDATED LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS (CONTINUED)
As of and For the Three Months Ended
12/31/2017
Leverage Ratios:
Total debt (book value) (1) / total gross assets (2) 49.1%
Total debt (book value) (1) / gross book value of real estate assets (3) 50.2%
Total debt (book value) (1) / total market capitalization (4) 52.0%
Secured debt (book value) (1) / total assets 4.5%
Variable rate debt (book value) (1) / total debt (book value) (1) 32.8%
Coverage Ratios:
Adjusted EBITDA (5) / interest expense 2.4x (3.5x, as adjusted) (8)
Total debt (book value) (1) / annualized Adjusted EBITDA (5) 10.2x (7.1x, as adjusted) (8)
Public Debt Covenants:
Total debt / adjusted total assets (6) (maximum 60%) 49.6%
Secured debt / adjusted total assets (6) (maximum 40%) 19.4%
Consolidated income available for debt service (7) / annual debt service (minimum 1.50x) 3.4x (8)
Total unencumbered assets (6) / unsecured debt (minimum 150%) 201.7%
(1) Debt amounts are net of unamortized premiums, discounts and certain issuance costs.
(2) Total gross assets is total assets plus accumulated depreciation.
(3) Gross book value of real estate assets is real estate properties at cost, plus certain acquisition costs, if any, before depreciation and purchase price allocations, less impairment
writedowns, if any.
(4) Total market capitalization is total debt plus the market value of our common shares at the end of the period.
(5) See page 27 for the calculation of Adjusted EBITDA and for a reconciliation of net income determined in accordance with GAAP to that amount.
(6) Adjusted total assets and total unencumbered assets include original cost of real estate assets calculated in accordance with GAAP and exclude depreciation and amortization, accounts
receivable, other intangible assets and impairment writedowns, if any.
(7) Consolidated income available for debt service is earnings from operations excluding interest expense, depreciation and amortization, loss on asset impairment, gains and losses on early
extinguishment of debt, and gains and losses on sales of properties, if any, determined together with debt service on a pro forma basis for the four consecutive fiscal quarters most recently
ended.
(8) As adjusted excludes business management incentive fees of $25,569 for the three months and year ended December 31, 2017. Excluding business management incentive fees of
$25,569 for the three months and year ended December 31, 2017, consolidated income available for debt service / annual debt service would be 3.7x.
On December 31, 2017, we had cash on hand of $658.7 million. In January 2018, this cash (plus drawings under our revolving credit facility of $50.0 million) was used to repay $350.0
million of 2.85% senior unsecured notes due in 2018 and to prepay the $350.0 million term loan due in 2020. The following represents the pro forma leverage ratios, coverage ratios
and public debt covenant compliance if these debt payments and prepayments occurred on December 31, 2017.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 22
CONSOLID
ATED CAPI
TA
L EXPENDITURES SUMMA
RY CONSOLIDATED CAPITAL EXPENDITURES SUMMARY
(dollars in thousands)
For the Three Months Ended
12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Tenant improvements (1) $ 384 $ 378 $ 61 $ 328 $ 3,046
Leasing costs (2) 3,240 403 630 1,402 627
Building improvements (3) 1,558 1,323 1,209 694 946
Recurring capital expenditures 5,182 2,104 1,900 2,424 4,619
Development, redevelopment and other activities (4) 1,096 2,583 2,451 721 1,274
Total capital expenditures $ 6,278 $ 4,687 $ 4,351 $ 3,145 $ 5,893
(1) Tenant improvements include capital expenditures used to improve tenants' space or amounts paid directly to tenants to improve their space.
(2) Leasing costs include leasing related costs, such as brokerage commissions, legal costs and tenant inducements.
(3) Building improvements generally include (i) expenditures to replace obsolete building components and (ii) expenditures that extend the useful life of existing assets.
(4) Development, redevelopment and other activities generally include (i) capital expenditures that are identified at the time of a property acquisition and incurred within a short time
period after acquiring the property and (ii) capital expenditure projects that reposition a property or result in new sources of revenues.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 23
CONSOLID
ATED PROPERT
Y
ACQUISITIONS
AND DISPOSITIONS INFORM
ATION SINCE 1/1/1
7
TO 12/31/1
7
CONSOLIDATED PROPERTY ACQUISITIONS AND DISPOSITIONS INFORMATION SINCE 1/1/17 TO 12/31/17
(sq. ft. and dollars in thousands)
Acquisitions(1):
Dispositions:
We have not disposed of any properties between January 1, 2017 and December 31, 2017.
(1) In January 2017, we also acquired a land parcel adjacent to one of our properties located in McAlester, OK for $226, excluding acquisition related costs, in order to expand our adjacent building for the existing tenant.
(2) Represents the gross purchase price, including assumed mortgage debt, if any, and excluding acquisition related costs and purchase price allocations.
(3) Represents the ratio of (x) annual straight line rental income, excluding the impact of above and below market lease amortization, based on existing leases as of the date of acquisition, less estimated annual property
operating expenses that we expected to pay as of the date of acquisition, excluding depreciation and amortization expense, to (y) the acquisition purchase price, including the principal amount of any assumed debt and
excluding acquisition related costs.
(4) Average remaining lease term in years is weighted based on rental revenues as of the date acquired.
(5) Percent leased is as of the date acquired.
Weighted
Average
Purchase Remaining
Date Number of Number of Purchase Price (2) / Cap Lease Term Percent
Acquired Location Properties Buildings Sq. Ft. Price (2) Sq. Ft. Rate (3) in Years (4) Leased (5) Tenant
4/28/2017 Norfolk, VA 1 1 289 $ 55,108 $ 191 7.8% 10.2 100% Automatic Data Processing, Inc.
5/12/2017 Houston, TX 1 1 84 20,300 242 7.9% 10.6 100% Lyondell Chemical Company
7/19/2017 Indianapolis, IN 1 2 275 41,050 149 10.0% 10.0 100% Interactive Intelligence Group, Inc.
Total / Weighted Average 3 4 648 $ 116,458 $ 180 8.6% 10.2 100%
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 24
CALCUL
ATION OF PROPERT
Y NET OPER
ATING INCOME (NOI)
AND CASH BASIS NO
I
CALCULATION OF PROPERTY NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1)
(dollars in thousands)
For the Three Months Ended For the Year Ended
12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016 12/31/2017 12/31/2016
Calculation of NOI and Cash Basis NOI:
Rental income $ 99,265 $ 98,635 $ 97,041 $ 97,344 $ 96,503 $ 392,285 $ 387,015
Tenant reimbursements and other income 18,660 19,379 18,829 18,950 18,332 75,818 74,992
Real estate taxes (10,963) (11,489) (10,836) (10,843) (11,314) (44,131) (42,879)
Other operating expenses (14,528) (14,649) (13,523) (12,867) (12,970) (55,567) (52,957)
NOI $ 92,434 $ 91,876 $ 91,511 $ 92,584 $ 90,551 $ 368,405 $ 366,171
SIR NOI (excluding ILPT) $ 60,403 $ 60,116 $ 59,946 $ 60,215 $ 59,173 $ 240,680 $ 240,658
ILPT NOI 32,031 31,760 31,565 32,369 31,378 127,725 125,513
NOI $ 92,434 $ 91,876 $ 91,511 $ 92,584 $ 90,551 $ 368,405 $ 366,171
Non-cash straight line rent adjustments included in rental income (2) (4,608) (5,581) (5,389) (5,391) (5,690) (20,969) (24,744)
Lease value amortization included in rental income (2) (546) (547) (527) (434) (434) (2,054) (1,732)
Lease termination fees included in rental income (2) (212) — (101) — — (313) —
Non-cash amortization included in other operating expenses (3) (213) (213) (213) (213) (213) (852) (852)
Cash Basis NOI $ 86,855 $ 85,535 $ 85,281 $ 86,546 $ 84,214 $ 344,217 $ 338,843
SIR Cash Basis NOI (excluding ILPT) $ 56,573 $ 55,486 $ 55,425 $ 55,881 $ 54,612 $ 223,365 $ 220,489
ILPT Cash Basis NOI 30,282 30,049 29,856 30,665 29,602 120,852 118,354
Cash Basis NOI $ 86,855 $ 85,535 $ 85,281 $ 86,546 $ 84,214 $ 344,217 $ 338,843
Reconciliation of Net Income to NOI and Cash Basis NOI:
Net income $ 2,075 $ 31,442 $ 26,661 $ 6,728 $ 24,222 $ 66,906 $ 116,354
Equity in earnings of an investee (75) (31) (374) (128) (30) (608) (137)
Income tax expense 102 177 85 102 78 466 448
Income before income tax expense and equity in earnings of an investee 2,102 31,588 26,372 6,702 24,270 66,764 116,665
Interest expense 24,592 24,383 22,808 21,087 20,737 92,870 82,620
Dividend income (397) (397) (396) (397) (396) (1,587) (1,268)
Operating income 26,297 55,574 48,784 27,392 44,611 158,047 198,017
Loss on impairment of real estate assets — — 229 — 5,484 229 5,484
Loss on asset impairment (4) — — — 4,047 — 4,047 —
Write-off of straight line rents receivable, net (4) — — — 12,517 — 12,517 —
General and administrative 30,160 1,589 8,181 14,888 6,699 54,818 28,602
Acquisition and transaction related costs 1,075 — — — 235 1,075 306
Depreciation and amortization 34,902 34,713 34,317 33,740 33,522 137,672 133,762
NOI 92,434 91,876 91,511 92,584 90,551 368,405 366,171
Non-cash straight line rent adjustments included in rental income (2) (4,608) (5,581) (5,389) (5,391) (5,690) (20,969) (24,744)
Lease value amortization included in rental income (2) (546) (547) (527) (434) (434) (2,054) (1,732)
Lease termination fees included in rental income (2) (212) — (101) — — (313) —
Non-cash amortization included in other operating expenses (3) (213) (213) (213) (213) (213) (852) (852)
Cash Basis NOI $ 86,855 $ 85,535 $ 85,281 $ 86,546 $ 84,214 $ 344,217 $ 338,843
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 25
CALCUL
ATION OF PROPERT
Y NET OPER
ATING INCOME (NOI)
AND CASH BASIS NO
I
(CONTINUED
)
CALCULATION OF PROPERTY NET OPERATING INCOME (NOI) AND CASH BASIS NOI (CONTINUED) (1)
(dollars in thousands)
(1) See Definitions of Certain Non-GAAP Financial Measures on page 29 for the definitions of NOI and Cash Basis NOI, a description of why we believe they are
appropriate supplemental measures and a description of how we use these measures.
(2) We report rental income on a straight line basis over the terms of the respective leases; accordingly, rental income includes non-cash straight line rent
adjustments. Rental income also includes non-cash amortization of intangible lease assets and liabilities and lease termination fees, if any.
(3) We recorded a liability for the amount by which the estimated fair value for accounting purposes exceeded the price we paid for our investment in RMR Inc.
common stock in June 2015. A portion of this liability is being amortized on a straight line basis through December 31, 2035 as a reduction to property
management fees expense, which are included in other operating expenses.
(4) During the three months ended March 31, 2017, we recorded a $12,517 non-cash write-off of straight line rents receivable related to leases associated with a
tenant bankruptcy at two properties located in Huntsville, AL and Hanover, PA and a $4,047 loss on asset impairment for unamortized lease intangibles related
to a lease associated with this tenant bankruptcy at the property located in Hanover, PA.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 26RECONCILI
ATION OF NOI
TO SAME PROPERT
Y NOI
AND CALCUL
ATION OF SAME PROPERT
Y
CASH BASIS NO
I RECONCILIATION OF NOI TO SAME PROPERTY NOI AND
CALCULATION OF SAME PROPERTY CASH BASIS NOI (1)
(dollars in thousands)
For the Three Months Ended For the Year Ended
12/31/2017 12/31/2016 12/31/2017 12/31/2016
Reconciliation of NOI to Same Property NOI (2)(3):
Rental income $ 99,265 $ 96,503 $ 392,285 $ 387,015
Tenant reimbursements and other income 18,660 18,332 75,818 74,992
Real estate taxes (10,963) (11,314) (44,131) (42,879)
Other operating expenses (14,528) (12,970) (55,567) (52,957)
NOI 92,434 90,551 368,405 366,171
Less:
NOI of properties not included in same property results (2,471) (148) (7,185) (537)
Same property NOI $ 89,963 $ 90,403 $ 361,220 $ 365,634
SIR same property NOI (excluding ILPT) $ 57,932 $ 59,025 $ 233,495 $ 240,121
ILPT same property NOI 32,031 31,378 127,725 125,513
Same property NOI $ 89,963 $ 90,403 $ 361,220 $ 365,634
Calculation of Same Property Cash Basis NOI (2)(3):
Same property NOI $ 89,963 $ 90,403 $ 361,220 $ 365,634
Less:
Non-cash straight line rent adjustments included in rental income (4) (3,895) (5,661) (18,310) (24,661)
Lease value amortization included in rental income (4) (554) (443) (2,090) (1,741)
Lease termination fees included in rental income (4) (212) — (313) —
Non-cash amortization included in other operating expenses (5) (213) (213) (852) (852)
Same property Cash Basis NOI $ 85,089 $ 84,086 $ 339,655 $ 338,380
SIR same property Cash Basis NOI (excluding ILPT) $ 54,807 $ 54,484 $ 218,803 $ 220,026
ILPT same property Cash Basis NOI 30,282 29,602 120,852 118,354
Same property Cash Basis NOI $ 85,089 $ 84,086 $ 339,655 $ 338,380
(1) See Definitions of Certain Non-GAAP Financial Measures on page 29 for the definitions of NOI and Cash Basis NOI, a description of why we believe they are appropriate supplemental measures and a description
of how we use these measures.
(2) For the three months ended December 31, 2017, same property NOI and Cash Basis NOI are based on properties we owned as of December 31, 2017, and which we owned continuously since October 1, 2016.
(3) For the year ended December 31, 2017, same property NOI and Cash Basis NOI are based on properties we owned as of December 31, 2017, and which we owned continuously since January 1, 2016.
(4) We report rental income on a straight line basis over the terms of the respective leases; accordingly, rental income includes non-cash straight line rent adjustments. Rental income also includes non-cash
amortization of intangible lease assets and liabilities and lease termination fees, if any.
(5) We recorded a liability for the amount by which the estimated fair value for accounting purposes exceeded the price we paid for our investment in RMR Inc. common stock in June 2015. A portion of this liability is
being amortized on a straight line basis through December 31, 2035 as a reduction to property management fees expense, which are included in other operating expenses.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 27
CALCUL
ATION OF EBITD
A
AND
ADJUSTED EBITD
A
CALCULATION OF EBITDA AND ADJUSTED EBITDA (1)
(dollars in thousands)
For the Three Months Ended For the Year Ended
12/31/2017 (2) 9/30/2017 6/30/2017 3/31/2017 12/31/2016 12/31/2017 12/31/2016
Net income $ 2,075 $ 31,442 $ 26,661 $ 6,728 $ 24,222 $ 66,906 $ 116,354
Plus: interest expense 24,592 24,383 22,808 21,087 20,737 92,870 82,620
Plus: income tax expense 102 177 85 102 78 466 448
Plus: depreciation and amortization 34,902 34,713 34,317 33,740 33,522 137,672 133,762
EBITDA 61,671 90,715 83,871 61,657 78,559 297,914 333,184
Plus: acquisition and transaction related costs 1,075 — — — 235 1,075 306
Plus: general and administrative expense paid in common shares (3) 360 458 514 247 166 1,579 1,623
Plus: estimated business management incentive fees (4) (3,288) (5,478) 920 7,846 — — —
Plus: loss on asset impairment (5) — — — 4,047 — 4,047 —
Plus: loss on impairment of real estate assets (6) — — 229 — 5,484 229 5,484
Adjusted EBITDA $ 59,818 $ 85,695 $ 85,534 $ 73,797 $ 84,444 $ 304,844 $ 340,597
(1) See Definitions of Certain Non-GAAP Financial Measures on page 29 for the definitions of EBITDA and Adjusted EBITDA and a description of why we believe they are appropriate
supplemental measures.
(2) Net income and EBITDA include business management incentive fee expense of $22,281 for the three months ended December 31, 2017. Adjusted EBITDA includes business
management incentive fee expense of $25,569 for the three months ended December 31, 2017.
(3) Amount represents equity based compensation to our trustees and our officers and certain other employees of RMR LLC.
(4) Incentive fees under our business management agreement with RMR LLC are payable after the end of each calendar year, are calculated based on common share total return, as
defined, and are included in general and administrative expense in our consolidated statements of income. In calculating net income in accordance with GAAP, we recognize
estimated business management incentive fee expense, if any, in the first, second and third quarters. Although we recognize this expense, if any, in the first, second and third
quarters for purposes of calculating net income, we do not include such expense in the calculation of Adjusted EBITDA until the fourth quarter, when the amount of the business
management incentive fee expense for the calendar year, if any, is determined. Adjusted EBITDA includes business management incentive fee expense of $25,569 for both the
three months and year ended December 31, 2017. Business management incentive fees for 2017 were paid in cash in January 2018.
(5) During the three months ended March 31, 2017, we recorded a $4,047 loss on asset impairment for unamortized lease intangibles related to a lease associated with a tenant
bankruptcy at a property located in Hanover, PA.
(6) We recorded losses on impairment of real estate assets of $229 during the three months ended June 30, 2017 and $5,484 during the three months ended December 31, 2016 in
connection with one vacant property located in Maynard, MA.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 28CALCUL
ATION OF FUNDS FROM OPER
ATIONS (FFO)
A
TTRIBUTED
TO SIR
AND NORMALIZE
D
FFO
A
TTRIBUTED
TO SI
R
CALCULATION OF FUNDS FROM OPERATIONS (FFO) ATTRIBUTED TO SIR AND NORMALIZED FFO
ATTRIBUTED TO SIR (1)
(amounts in thousands, except per share data)
For the Three Months Ended For the Year Ended
12/31/2017 (2) 9/30/2017 6/30/2017 3/31/2017 12/31/2016 12/31/2017 12/31/2016
Net income attributed to SIR $ 2,075 $ 31,442 $ 26,661 $ 6,728 $ 24,222 $ 66,906 $ 116,321
Plus: depreciation and amortization 34,902 34,713 34,317 33,740 33,522 137,672 133,762
Plus: loss on impairment of real estate assets — — 229 — 5,484 229 5,484
Plus: net income allocated to noncontrolling interest — — — — — — 33
Less: FFO allocated to noncontrolling interest — — — — — — (77)
FFO attributed to SIR 36,977 66,155 61,207 40,468 63,228 204,807 255,523
Plus: acquisition and transaction related costs 1,075 — — — 235 1,075 306
Plus: estimated business management incentive fees (3) (3,288) (5,478) 920 7,846 — — —
Plus: loss on asset impairment (4) — — — 4,047 — 4,047 —
Normalized FFO attributed to SIR $ 34,764 $ 60,677 $ 62,127 $ 52,361 $ 63,463 $ 209,929 $ 255,829
Weighted average common shares outstanding - basic 89,381 89,355 89,338 89,331 89,331 89,351 89,304
Weighted average common shares outstanding - diluted 89,392 89,379 89,362 89,348 89,335 89,370 89,324
Net income attributed to SIR per common share - basic and diluted $ 0.02 $ 0.35 $ 0.30 $ 0.08 $ 0.27 $ 0.75 $ 1.30
FFO attributed to SIR per common share - basic $ 0.41 $ 0.74 $ 0.69 $ 0.45 $ 0.71 $ 2.29 $ 2.86
FFO attributed to SIR per common share - diluted $ 0.41 $ 0.74 $ 0.68 $ 0.45 $ 0.71 $ 2.29 $ 2.86
Normalized FFO attributed to SIR per common share - basic and diluted $ 0.39 $ 0.68 $ 0.70 $ 0.59 $ 0.71 $ 2.35 $ 2.86
(1) See Definitions of Certain Non-GAAP Financial Measures on page 29 for a definition of FFO attributed to SIR and Normalized FFO attributed to SIR, a description of why we believe they are
appropriate supplemental measures and a description of how we use these measures.
(2) Net income and FFO attributed to SIR include business management incentive fee expense of $22,281 for the three months ended December 31, 2017. Normalized FFO attributed to SIR
includes business management incentive fee expense of $25,569 for the three months ended December 31, 2017.
(3) Incentive fees under our business management agreement with RMR LLC are payable after the end of each calendar year, are calculated based on common share total return, as defined,
and are included in general and administrative expense in our consolidated statements of income. In calculating net income in accordance with GAAP, we recognize estimated business
management incentive fee expense, if any, in the first, second and third quarters. Although we recognize this expense, if any, in the first, second and third quarters for purposes of calculating
net income, we do not include such expense in the calculation of Normalized FFO attributed to SIR until the fourth quarter, when the amount of the business management incentive fee
expense for the calendar year, if any, is determined. Normalized FFO attributed to SIR includes business management incentive fee expense of $25,569 for both the three months and year
ended December 31, 2017. Business management incentive fees for 2017 were paid in cash in January 2018.
(4) During the three months ended March 31, 2017, we recorded a $4,047 loss on asset impairment for unamortized lease intangibles related to a lease associated with a tenant bankruptcy at a
property located in Hanover, PA.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 29
DEFINITIONS OF CER
TAIN NON-GAA
P FINANCIA
L MEASURE
S
DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES
NOI and Cash Basis NOI:
The calculations of NOI and Cash Basis NOI exclude certain components of net income in order to provide results that are more closely related to our property level results of operations. We
calculate NOI and Cash Basis NOI as shown on page 24. We define NOI as income from our rental of real estate less our property operating expenses. NOI excludes amortization of capitalized
tenant improvement costs and leasing commissions that we record as depreciation and amortization. We define Cash Basis NOI as NOI excluding non-cash straight line rent adjustments, lease
value amortization, lease termination fees, if any, and non-cash amortization included in other operating expenses. We consider NOI and Cash Basis NOI to be appropriate supplemental
measures to net income because they may help both investors and management to understand the operations of our properties. We use NOI and Cash Basis NOI to evaluate individual and
company wide property level performance, and we believe that NOI and Cash Basis NOI provide useful information to investors regarding our results of operations because they reflect only those
income and expense items that are generated and incurred at the property level and may facilitate comparisons of our operating performance between periods and with other REITs. NOI and
Cash Basis NOI do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income, net income attributed to SIR or
operating income as indicators of our operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income, net income attributed to SIR
and operating income as presented in our consolidated statements of income. Other real estate companies and REITs may calculate NOI and Cash Basis NOI differently than we do.
EBITDA and Adjusted EBITDA:
We calculate EBITDA and Adjusted EBITDA as shown on page 27. We consider EBITDA and Adjusted EBITDA to be appropriate supplemental measures of our operating performance, along with
net income, net income attributed to SIR and operating income. We believe that EBITDA and Adjusted EBITDA provide useful information to investors because by excluding the effects of certain
historical amounts, such as interest, depreciation and amortization expense, EBITDA and Adjusted EBITDA may facilitate a comparison of current operating performance with our past operating
performance. EBITDA and Adjusted EBITDA do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income, net income
attributed to SIR or operating income as indicators of operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income, net income
attributed to SIR and operating income as presented in our consolidated statements of income. Other real estate companies and REITs may calculate EBITDA and Adjusted EBITDA differently
than we do.
FFO Attributed to SIR and Normalized FFO Attributed to SIR:
We calculate FFO attributed to SIR and Normalized FFO attributed to SIR as shown on page 28. FFO attributed to SIR is calculated on the basis defined by The National Association of Real
Estate Investment Trusts, or Nareit, which is net income, calculated in accordance with GAAP, plus real estate depreciation and amortization, loss on impairment of real estate assets and the
difference between net income and FFO allocated to noncontrolling interest, as well as certain other adjustments currently not applicable to us. Our calculation of Normalized FFO attributed to SIR
differs from Nareit’s definition of FFO because we include business management incentive fees, if any, only in the fourth quarter versus the quarter when they are recognized as expense in
accordance with GAAP due to their quarterly volatility not necessarily being indicative of our core operating performance and the uncertainty as to whether any such business management
incentive fees will be payable when all contingencies for determining such fees are known at the end of the calendar year and we exclude acquisition and transaction related costs expensed under
GAAP, loss on asset impairment and Normalized FFO, net of FFO, from noncontrolling interest, if any. We consider FFO attributed to SIR and Normalized FFO attributed to SIR to be appropriate
supplemental measures of operating performance for a REIT, along with net income, net income attributed to a REIT and operating income. We believe that FFO attributed to SIR and Normalized
FFO attributed to SIR provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation expense, FFO attributed to SIR and Normalized
FFO attributed to SIR may facilitate a comparison of our operating performance between periods and with other REITs. FFO attributed to SIR and Normalized FFO attributed to SIR are among the
factors considered by our Board of Trustees when determining the amount of distributions to our shareholders. Other factors include, but are not limited to, requirements to maintain our
qualification for taxation as a REIT, limitations in our credit agreement and public debt covenants, the availability to us of debt and equity capital, our expectation of our future capital requirements
and operating performance and our expected needs for and availability of cash to pay our obligations. FFO attributed to SIR and Normalized FFO attributed to SIR do not represent cash
generated by operating activities in accordance with GAAP and should not be considered alternatives to net income, net income attributed to SIR or operating income as indicators of our operating
performance or as measures of our liquidity. These measures should be considered in conjunction with net income, net income attributed to SIR and operating income as presented in our
consolidated statements of income. Other real estate companies and REITs may calculate FFO and Normalized FFO differently than we do.
30
PORTFOLIO INFORMATION
30
2555 Grand Boulevard, Kansas City, MO
Square Feet: 595,607
Shook, Hardy & Bacon LLP Headquarters
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 31
CONSOLID
ATED PORTFOLIO SUMMA
RY
B
Y OWNE
R
CONSOLIDATED PORTFOLIO SUMMARY BY OWNER
(dollars and sq. ft. in thousands)
(1) Includes buildings, leasable land parcels and easements which are primarily leasable industrial and commercial lands located in Hawaii, most of
which are owned by ILPT.
(2) See page 24 for the calculation of NOI and Cash Basis NOI and a reconciliation of net income determined in accordance with GAAP to those
amounts.
As of and For the Three Months Ended December 31, 2017
Key Statistic Consolidated ILPT SIR (excluding ILPT)
Leasable buildings (1) 366 266 100
Percent of total 100.0% 72.7% 27.3%
Total square feet 45,496 28,540 16,956
Percent of total 100.0% 62.7% 37.3%
Leased square feet 43,767 28,533 15,234
Percent leased 96.2% 99.9% 89.8%
Total revenues $ 117,925 $ 39,395 $ 78,530
Percent of total 100.0% 33.4% 66.6%
NOI (2) $ 92,434 $ 32,031 $ 60,403
Percent of total 100.0% 34.7% 65.3%
Cash Basis NOI (2) $ 86,855 $ 30,282 $ 56,573
Percent of total 100.0% 34.9% 65.1%
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 32
CONSOLID
ATED SAME PROPERT
Y RESU
LTS OF OPER
ATION
S
CONSOLIDATED SAME PROPERTY RESULTS OF OPERATIONS
(dollars and sq. ft. in thousands)
As of and For the Three Months Ended (1) As of and For the Year Ended (2)
12/31/2017 12/31/2016 12/31/2017 12/31/2016
Leasable Buildings:
SIR (excluding ILPT) 95 95 94 94
ILPT (3) 266 266 266 266
Total 361 361 360 360
Square Feet (4):
SIR (excluding ILPT) 16,258 16,258 16,201 16,201
ILPT (3) 28,540 28,505 28,540 28,505
Total 44,798 44,763 44,741 44,706
Percent Leased (5):
SIR (excluding ILPT) 89.4% 92.5% 89.4% 92.5%
ILPT 99.9% 99.2% 99.9% 99.2%
Total 96.1% 96.8% 96.1% 96.8%
Total Revenues:
SIR (excluding ILPT) $ 74,871 $ 76,551 $ 301,403 $ 308,017
ILPT 39,395 38,059 156,506 153,310
Total $ 114,266 $ 114,610 $ 457,909 $ 461,327
(1) Consists of properties that we owned continuously since October 1, 2016.
(2) Consists of properties that we owned continuously since January 1, 2016.
(3) Includes 226 buildings, leasable land parcels and easements with approximately 16,834 square feet which are primarily leasable industrial and
commercial lands located in Hawaii.
(4) Subject to modest adjustments when space is re-measured or re-configured for new tenants and when land leases are converted to building leases.
(5) Includes (i) space being fitted out for occupancy pursuant to existing leases, if any, and (ii) space which is leased but is not occupied or is being offered
for sublease by tenants, if any.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 33
CONSOLID
ATED SAME PROPERT
Y RESU
LTS OF OPER
ATIONS (CONTINUED
)
CONSOLIDATED SAME PROPERTY RESULTS OF OPERATIONS (CONTINUED)
(dollars in thousands)
As of and For the Three Months Ended (1) As of and For the Year Ended (2)
12/31/2017 12/31/2016 12/31/2017 12/31/2016
NOI (3):
SIR (excluding ILPT) $ 57,932 $ 59,025 $ 233,495 $ 240,121
ILPT 32,031 31,378 127,725 125,513
Total $ 89,963 $ 90,403 $ 361,220 $ 365,634
Cash Basis NOI (3):
SIR (excluding ILPT) $ 54,807 $ 54,484 $ 218,803 $ 220,026
ILPT 30,282 29,602 120,852 118,354
Total $ 85,089 $ 84,086 $ 339,655 $ 338,380
NOI % Change:
SIR (excluding ILPT) -1.9% -2.8%
ILPT 2.1% 1.8%
Total -0.5% -1.2%
Cash Basis NOI % Change:
SIR (excluding ILPT) 0.6% -0.6%
ILPT 2.3% 2.1%
Total 1.2% 0.4%
(1) Consists of properties that we owned continuously since October 1, 2016.
(2) Consists of properties that we owned continuously since January 1, 2016.
(3) See page 24 for the calculation of NOI and Cash Basis NOI and a reconciliation of net income determined in accordance with GAAP to those amounts, and see
page 26 for the calculation and a reconciliation of same property NOI and same property Cash Basis NOI.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 34
CONSOLID
ATED LEASING SUMMA
RY CONSOLIDATED LEASING SUMMARY
(dollars and sq. ft. in thousands, except per sq. ft. data)
The above leasing summary is based on leases entered into during the periods indicated.
As of and For the Three Months Ended
12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Leasable buildings (1) 366 366 364 362 362
Total sq. ft. (2) 45,496 45,496 45,186 44,813 44,813
Square feet leased 43,767 43,753 43,340 42,967 43,362
Percentage leased 96.2% 96.2% 95.9% 95.9% 96.8%
Leasing Activity (Sq. Ft.):
New leases 173 114 41 234 (3) 100
Renewals 395 152 161 250 253
Total 568 266 202 484 353
% Change in GAAP Rent (4):
New leases 13.6% -11.0% -10.7% 23.3% -16.3%
Renewals 24.6% 4.9% 3.9% 20.0% 35.4%
Weighted average 21.1% 0.5% -2.6% 20.9% 32.0%
Leasing Costs and Concession Commitments (5):
New leases $ 7,667 $ 171 $ 2,494 $ 826 $ 52
Renewals 6,237 299 14 309 35
Total $ 13,904 $ 470 $ 2,508 $ 1,135 $ 87
Leasing Costs and Concession Commitments per Sq. Ft. (5):
New leases $ 44.32 $ 1.50 $ 60.83 $ 3.53 $ 0.52
Renewals $ 15.79 $ 1.97 $ 0.09 $ 1.24 $ 0.14
Total $ 24.48 $ 1.77 $ 12.42 $ 2.35 $ 0.25
Weighted Average Lease Term by Sq. Ft. (years):
New leases 8.4 10.1 12.4 7.1 3.1
Renewals 5.2 7.9 35.9 12.8 23.1
Total 6.2 8.9 31.1 10.0 17.4
Leasing Costs and Concession Commitments per Sq. Ft. per Year (5) (6):
New leases $ 5.28 $ 0.15 $ 4.91 $ 0.50 $ 0.17
Renewals $ 3.04 $ 0.25 $ 0.00 $ 0.10 $ 0.01
Total $ 3.95 $ 0.20 $ 0.40 $ 0.23 $ 0.01
(1) Includes 226 buildings, leasable land parcels and easements with approximately 16,834 square feet which are primarily leasable industrial and commercial lands located in Hawaii
which are owned by ILPT.
(2) Subject to modest adjustments when space is re-measured or re-configured for new tenants and when land leases are converted to building leases.
(3) Includes a 35 square foot expansion for a lease that commenced on September 1, 2017.
(4) Percent difference in prior rents charged for same space. Rents include estimated recurring expense reimbursements and exclude lease value amortization.
(5) Includes commitments made for leasing expenditures and concessions, such as tenant improvements, leasing commissions, tenant reimbursements and free rent.
(6) Amounts are per square foot per year for the weighted average lease term by leased square feet.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 35
CONSOLID
ATED OCCU
PANC
Y
AND LEASING
ANA
LYSIS B
Y OWNE
R
CONSOLIDATED OCCUPANCY AND LEASING ANALYSIS BY OWNER
(sq. ft. in thousands)
Total Sq. Ft. (1) Sq. Ft. Leases Executed During
As of the Three Months Ended 12/31/2017
Owner 12/31/2017 New Renewals Total
SIR (excluding ILPT) 16,956 112 287 399
ILPT 28,540 61 108 169
Total 45,496 173 395 568
Sq. Ft. Leased
As of 9/30/2017 New and Acquisitions / As of 12/31/2017
Owner 9/30/2017 % Leased (2) Expired Renewals (Sales) 12/31/2017 % Leased
SIR (excluding ILPT) 15,234 89.8% (399) 399 — 15,234 89.8%
ILPT 28,519 99.9% (155) 169 — 28,533 99.9%
Total 43,753 96.2% (554) 568 — 43,767 96.2%
(1) Subject to modest adjustments when space is re-measured or re-configured for new tenants and when land leases are converted to building leases.
(2) Excludes effects of space remeasurements during the period, if any. Percent leased includes (i) space being fitted out for occupancy, if any, and (ii)
space which is leased but is not occupied or is being offered for sublease by tenants, if any.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 36
CONSOLID
ATED TENANT DIVERSIT
Y
AND CREDIT CHARACTERISTIC
S
CONSOLIDATED TENANT DIVERSITY AND CREDIT CHARACTERISTICS
As of December 31, 2017
% of Annualized
Tenant Industry Rental Revenues (1)
Technology & Communications 24.7%
Retail & Food 21.6%
Manufacturing & Transportation 11.6%
Legal & Consulting 10.7%
Real Estate & Financial 9.6%
Energy Services 9.3%
Industrial 8.7%
Other 3.8%
100.0%
% of Annualized
Tenant Credit Characteristics Rental Revenues (1)
Leased Hawaii lands 15.7%(2)
Investment grade rated 36.3%(3)
Unrated or non-investment grade 48.0%
100.0%
% of Annualized Rental Revenues (1)
% of Annualized Rental Revenues (1)
(1) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value amortization,
adjusted for tenant concessions including free rent and amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
(2) Excludes certain Hawaii lands which are leased by investment grade rated tenants and are included in the investment grade rated tenant credit category.
(3) Includes certain Hawaii lands which are leased by investment grade rated tenants.
Technology & Communications
Retail & Food
Manufacturing &
Transportation
Legal & Consulting
Real Estate & Financial
Energy Services
Industrial
Other
24.7%
21.6%
11.6%
10.7%
9.6%
9.3%
8.7%
3.8%
Leased Hawaii lands (2)
Investment grade rated (3)
Unrated or non-investment
grade
15.7%
36.3%
48.0%
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 37
TENANTS REPRESENTING 1% OR MORE OF
TO
TA
L CONSOLID
ATED
ANNUALIZED REN
TA
L
REVENU
E
TENANTS REPRESENTING 1% OR MORE OF TOTAL CONSOLIDATED ANNUALIZED RENTAL REVENUE
(sq. ft. in thousands)
% of
Rented % of Total Annualized Rental
Tenant Property Type Sq. Ft. (1) Rented Sq. Ft. (1) Revenues (2)
1. Shook, Hardy & Bacon L.L.P. Office 596 1.4% 3.8%
2. Tellabs, Inc. Office 820 1.9% 3.6%
3. Amazon.com, Inc. Industrial 3,048 7.0% 3.4%
4. Noble Energy, Inc. Office 497 1.1% 3.1%
5. Bank of America, National Association Office 554 1.3% 3.0%
6. Tesoro Corporation Office 618 1.4% 2.9%
7. F5 Networks, Inc. Office 299 0.7% 2.8%
8. WestRock Company Office 311 0.7% 2.3%
9. Orbital ATK, Inc. Office 337 0.8% 2.2%
10. Technicolor SA Industrial 1,371 3.1% 2.1%
11. Tyson Foods, Inc. Office 248 0.6% 2.1%
12. FedEx Corporation Office; Industrial 830 1.9% 1.8%
13. Micro Focus Software, Inc. Office 406 0.9% 1.7%
14. PNC Bank, National Association Office 441 1.0% 1.4%
15. ServiceNow, Inc. Office 149 0.3% 1.3%
16. Allstate Insurance Company Office 458 1.0% 1.3%
17. Church & Dwight Co., Inc. Office 250 0.6% 1.3%
18. Compass Group USA, Inc. Office 267 0.6% 1.3%
19. Restoration Hardware, Inc. Industrial 1,195 2.7% 1.2%
20. Tailored Brands, Inc. Office 206 0.5% 1.2%
21. Automatic Data Processing, Inc. Office 289 0.7% 1.2%
22. Primerica Life Insurance Company Office 344 0.8% 1.1%
23. United Launch Alliance, LLC Office 168 0.4% 1.1%
24. American Tire Distributors, Inc. Industrial 722 1.7% 1.1%
25. Red Hat, Inc. Office 175 0.4% 1.0%
Total 14,599 33.5% 49.3%
As of December 31, 2017
(1) Rented square feet is pursuant to existing leases as of December 31, 2017 and includes (i) space being fitted out for occupancy, if any, and (ii) space which is leased but is not
occupied or is being offered for sublease by tenants, if any.
(2) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value
amortization, adjusted for tenant concessions including free rent and amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 38
CONSOLID
ATED THREE
YEAR LEASE EXPIR
ATION SCHEDULE B
Y OWNE
R
CONSOLIDATED THREE YEAR LEASE EXPIRATION SCHEDULE BY OWNER
(dollars and sq. ft. in thousands)As of December 31, 2017
2021 and
Total 2018 2019 2020 Thereafter
SIR (excluding ILPT):
Total sq. ft. 16,956
Leased sq. ft. (1) 15,234 580 206 189 14,259
Percent 3.8% 1.4% 1.2% 93.6%
Annualized rental revenues (2) $ 314,808 $ 7,329 $ 4,304 $ 5,412 $ 297,763
Percent 2.3% 1.4% 1.7% 94.6%
ILPT:
Total sq. ft. 28,540
Leased sq. ft. (1) 28,533 332 1,534 849 25,818
Percent 1.1% 5.4% 3.0% 90.5%
Annualized rental revenues (2) $ 155,644 $ 1,519 $ 4,432 $ 4,293 $ 145,400
Percent 1.0% 2.8% 2.8% 93.4%
Consolidated:
Total sq. ft. 45,496
Leased sq. ft. (1) 43,767 912 1,740 1,038 40,077
Percent 2.1% 4.0% 2.4% 91.5%
Annualized rental revenues (2) $ 470,452 $ 8,848 $ 8,736 $ 9,705 $ 443,163
Percent 1.9% 1.9% 2.1% 94.1%
(1) Leased square feet is pursuant to existing leases as of December 31, 2017 and includes (i) space being fitted out for occupancy, if any, and (ii) space which
is leased but is not occupied, or is being offered for sublease by tenants, if any.
(2) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding
lease value amortization, adjusted for tenant concessions including free rent and amounts reimbursed to tenants, plus estimated recurring expense
reimbursements from tenants.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 39
CONSOLID
ATED PORTFOLIO LEASE EXPIR
ATION SCHEDUL
E
CONSOLIDATED PORTFOLIO LEASE EXPIRATION SCHEDULE
(dollars and sq. ft. in thousands)As of December 31, 2017
Cumulative
% of Total Cumulative % % of Total % of Total
Rented Rented of Total Rented Annualized Annualized Annualized
Number of Square Feet Square Feet Square Feet Rental Revenues Rental Revenues Rental Revenues
Year Tenants Expiring (1) Expiring (1) Expiring (1) Expiring (2) Expiring (2) Expiring (2)
2018 25 912 2.1% 2.1% $ 8,848 1.9% 1.9%
2019 20 1,740 4.0% 6.1% 8,736 1.9% 3.8%
2020 21 1,038 2.4% 8.5% 9,705 2.1% 5.9%
2021 23 1,595 3.6% 12.1% 15,734 3.3% 9.2%
2022 73 3,948 9.0% 21.1% 50,142 10.7% 19.9%
2023 29 3,155 7.2% 28.3% 40,693 8.6% 28.5%
2024 23 7,001 16.0% 44.3% 69,054 14.7% 43.2%
2025 17 1,770 4.0% 48.3% 25,912 5.5% 48.7%
2026 8 1,701 3.9% 52.2% 26,406 5.6% 54.3%
2027 19 6,253 14.3% 66.5% 51,208 10.9% 65.2%
Thereafter 93 14,654 33.5% 100.0% 164,014 34.8% 100.0%
Total 351 43,767 100.0% $ 470,452 100.0%
Weighted average remaining lease term (in years) 9.7 9.3
(1) Rented square feet is pursuant to existing leases as of December 31, 2017, and includes (i) space being fitted out for occupancy, if any, and (ii) space which is leased but is not
occupied or is being offered for sublease by tenants, if any.
(2) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value amortization,
adjusted for tenant concessions including free rent and amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 40
HA
W
AII LAND RENT RESET SUMMA
RY HAWAII LAND RENT RESET SUMMARY (1)
(dollars and sq. ft. in thousands)
Historical Hawaii Land Rent Resets:
For the Three Months Ended
12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Number of leases reset 4 1 1 — —
Square feet 200 27 79 — —
Percent change in GAAP rent (2) 38.6% 45.3% 48.9% —% —%
Scheduled Hawaii Land Rent Resets:
As of December 31, 2017
Number Annualized
of Resets Sq. Ft. Rental Revenues (3)
2018 6 299 $ 1,932
2019 20 2,498 10,903
2020 4 359 2,500
2021 and thereafter 35 2,464 17,299
Total 65 5,620 $ 32,634
(1) All rent resets relate to properties owned by ILPT.
(2) Represents percent change in prior rents charged for same space. Reset rents include estimated recurring expense reimbursements and exclude lease value amortization.
(3) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value
amortization, adjusted for tenant concessions including free rent and amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
41EXHIBIT 41
45101 Warp Drive, Sterling, VA
Square Feet: 337,228
Orbital ATK (NYSE: OA) Corporate Headquarters
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 42
CONSOLID
ATED PROPERT
Y DE
TAI
L
CONSOLIDATED PROPERTY DETAIL
(dollars and square feet in thousands) EXHIBIT AAs of December 31, 2017
(1) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value amortization, adjusted for tenant concessions including free rent and
amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
(2) Excludes the value of real estate intangibles.
(3) Date acquired is the date we acquired the property or the date our former parent entity acquired the property for those properties that our former parent entity contributed to us in February 2012 in connection with our initial public offering.
Number of Year
Buildings, Annualized Built or
Land Parcels Rental Undepreciated Depreciated Date Most Recent
Property City State and Easements Owner Property Type Square Feet % Leased Revenue (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation
40 Inverness Center Parkway Birmingham AL 1 SIR 100% Owned Office 149 100.0% $ 1,620 $ 12,254 $ 10,356 12/9/2010 1984
42 Inverness Center Parkway Birmingham AL 1 SIR 100% Owned Office 149 100.0% 1,620 12,314 10,382 12/9/2010 1985
44 Inverness Center Parkway Birmingham AL 1 SIR 100% Owned Office 150 100.0% 2,387 12,398 10,497 12/9/2010 1985
46 Inverness Center Parkway Birmingham AL — SIR 100% Owned Land — —% — 2,000 2,000 12/9/2010 —
445 Jan Davis Drive Huntsville AL 1 SIR 100% Owned Office 57 100.0% 971 10,280 9,974 7/22/2016 2007
4905 Moores Mill Road Huntsville AL 1 SIR 100% Owned Industrial 1,371 100.0% 9,790 73,001 64,018 8/31/2012 2007
4501 Industrial Drive Fort Smith AR 1 ILPT Owned Industrial 64 100.0% 465 4,385 4,131 1/29/2015 2013
16001 North 28th Avenue Phoenix AZ 1 SIR 100% Owned Office 106 100.0% 1,882 13,717 12,976 4/16/2015 2007
2149 West Dunlap Avenue Phoenix AZ 1 SIR 100% Owned Office 123 100.0% 2,453 20,127 19,070 1/29/2015 1983
1920 and 1930 W University Drive Tempe AZ 2 SIR 100% Owned Office 101 100.0% 1,972 13,361 8,341 6/30/1999 1988
2544 and 2548 Campbell Place Carlsbad CA 2 SIR 100% Owned Office 95 100.0% 2,603 21,314 18,960 9/21/2012 2007
2235 Iron Point Road Folsom CA 1 SIR 100% Owned Office 96 100.0% 3,465 28,954 24,491 12/17/2010 2009
47131 Bayside Parkway Fremont CA 1 SIR 100% Owned Office 101 100.0% 2,198 10,775 9,649 3/19/2009 1990
100 Redwood Shores Parkway Redwood City CA 1 SIR 100% Owned Office 63 100.0% 3,127 35,531 33,837 1/29/2015 2014
3875 Atherton Road Rocklin CA 1 SIR 100% Owned Office 19 100.0% 420 4,180 3,890 1/29/2015 1991
145 Rio Robles Drive San Jose CA 1 SIR 100% Owned Office 57 100.0% 1,918 13,500 12,656 12/23/2013 2010
2090 Fortune Drive San Jose CA 1 SIR 100% Owned Office 72 100.0% 916 7,698 7,552 1/29/2015 2014
2115 O'Nel Drive San Jose CA 1 SIR 100% Owned Office 99 100.0% 3,168 33,200 31,369 1/29/2015 2013
3939 North First Street San Jose CA 1 SIR 100% Owned Office 64 100.0% 2,007 14,494 13,685 12/23/2013 2013
51 and 77 Rio Robles Drive San Jose CA 2 SIR 100% Owned Office 129 100.0% 2,636 31,478 29,488 12/23/2013 2011
6448-6450 Via Del Oro San Jose CA 1 SIR 100% Owned Office 76 100.0% 1,739 14,737 13,875 1/29/2015 1983
2450 and 2500 Walsh Avenue Santa Clara CA 2 SIR 100% Owned Office 132 100.0% 4,563 44,918 42,248 1/29/2015 2014
3250 and 3260 Jay Street Santa Clara CA 2 SIR 100% Owned Office 149 100.0% 6,110 63,959 60,163 1/29/2015 2013
350 West Java Drive Sunnyvale CA 1 SIR 100% Owned Office 96 100.0% 2,901 24,013 22,403 11/15/2012 2012
7958 South Chester Street Centennial CO 1 SIR 100% Owned Office 168 100.0% 5,037 31,049 29,336 1/29/2015 2000
350 Spectrum Loop Colorado Springs CO 1 SIR 100% Owned Office 156 100.0% 2,714 23,265 21,795 1/29/2015 2000
955 Aeroplaza Drive Colorado Springs CO 1 ILPT Owned Industrial 125 100.0% 901 8,212 7,672 1/29/2015 2012
13400 East 39th Avenue and 3800 Wheeling Street Denver CO 2 ILPT Owned Industrial 394 100.0% 1,364 16,101 15,137 1/29/2015 1996
333 Inverness Drive South Englewood CO 1 SIR 100% Owned Office 140 100.0% 2,840 15,446 13,756 6/15/2012 1998
150 Greenhorn Drive Pueblo CO 1 ILPT Owned Industrial 54 100.0% 545 4,377 4,072 1/29/2015 2013
2 Tower Drive Wallingford CT 1 ILPT Owned Industrial 62 100.0% 404 3,644 3,029 10/24/2006 1978
1 Targeting Center Windsor CT 1 SIR 100% Owned Office 97 100.0% 1,119 9,076 8,097 7/20/2012 1999
235 Great Pond Road Windsor CT 1 ILPT Owned Industrial 171 100.0% 1,383 11,869 10,587 7/20/2012 2004
10350 NW 112th Avenue Miami FL 1 SIR 100% Owned Office 79 100.0% 3,051 23,852 22,394 12/5/2003;11/21/2012 2002
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 43
CONSOLID
ATED PROPERT
Y DE
TAI
L (CONTINUED
)
CONSOLIDATED PROPERTY DETAIL (CONTINUED)
(dollars and square feet in thousands) EXHIBIT AAs of December 31, 2017
(1) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value amortization, adjusted for tenant concessions including free rent and
amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
(2) Excludes the value of real estate intangibles.
(3) Date acquired is the date we acquired the property or the date our former parent entity acquired the property for those properties that our former parent entity contributed to us in February 2012 in connection with our initial public offering.
Number of Year
Buildings, Annualized Built or
Land Parcels Rental Undepreciated Depreciated Date Most Recent
Property City State and Easements Owner Property Type Square Feet % Leased Revenue (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation
2100 NW 82nd Avenue Miami FL 1 ILPT Owned Industrial 37 100.0% 259 1,895 1,193 3/19/1998 2013
One Primerica Parkway Duluth GA 1 SIR 100% Owned Office 344 100.0% 5,248 57,333 53,656 1/29/2015 2013
1000 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 42 100.0% 421 2,252 2,252 12/5/2003 —
1001 Ahua Street Honolulu HI 1 ILPT Owned Land 338 100.0% 2,634 18,558 17,375 12/5/2003 —
1024 Kikowaena Place Honolulu HI 1 ILPT Owned Land 40 100.0% 309 1,818 1,818 12/5/2003 —
1024 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 26 100.0% 218 1,385 1,385 12/5/2003 —
1027 Kikowaena Place Honolulu HI 1 ILPT Owned Land 102 100.0% 795 5,444 5,444 12/5/2003 —
1030 Mapunapuna Street Kapolei HI 1 ILPT Owned Land 122 11.6% 991 5,655 5,655 6/15/2005 —
1038 Kikowaena Place Honolulu HI 1 ILPT Owned Land 47 100.0% 355 2,576 2,576 12/5/2003 —
1045 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 15 100.0% 105 819 819 12/5/2003 —
1050 Kikowaena Place Honolulu HI 1 ILPT Owned Land 43 100.0% 324 2,277 1,970 12/5/2003 —
1052 Ahua Street Honolulu HI 1 ILPT Owned Land 30 100.0% 197 1,943 1,869 12/5/2003 —
1055 Ahua Street Honolulu HI 1 ILPT Owned Land 27 100.0% 203 1,216 1,216 12/5/2003 —
106 Puuhale Road Honolulu HI 1 ILPT Owned Industrial 14 100.0% 232 1,342 1,299 12/5/2003 1966
1062 Kikowaena Place Honolulu HI 1 ILPT Owned Land 31 100.0% 238 1,648 1,438 12/5/2003 —
1122 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 106 100.0% 785 5,782 5,782 12/5/2003 —
113 Puuhale Road Honolulu HI 1 ILPT Owned Land 77 100.0% 542 3,729 3,729 12/5/2003 —
1150 Kikowaena Street Honolulu HI 1 ILPT Owned Land 46 100.0% 515 2,445 2,445 12/5/2003 —
120 Mokauea Street Honolulu HI 1 ILPT Owned Industrial 31 100.0% 439 2,608 2,526 12/5/2003 1970
120 Sand Island Access Road Honolulu HI 1 ILPT Owned Industrial 71 100.0% 1,284 13,735 9,732 11/23/2004 2004
120B Mokauea Street Honolulu HI 1 ILPT Owned Industrial 35 100.0% 534 1,953 1,953 12/5/2003 1970
125 Puuhale Road Honolulu HI 1 ILPT Owned Land 31 100.0% 255 1,630 1,630 12/5/2003 —
125B Puuhale Road Honolulu HI 1 ILPT Owned Land 49 100.0% 343 2,815 2,815 12/5/2003 —
1330 Pali Highway Honolulu HI 1 ILPT Owned Land 20 100.0% 459 1,423 1,423 12/5/2003 —
1360 Pali Highway Honolulu HI 1 ILPT Owned Land 126 100.0% 2,850 9,331 9,239 12/5/2003 —
140 Puuhale Road Honolulu HI 1 ILPT Owned Land 22 100.0% 200 1,100 1,100 1/18/2011;9/27/2012 —
142 Mokauea Street Honolulu HI 1 ILPT Owned Industrial 26 100.0% 400 3,637 3,319 12/5/2003 1972
148 Mokauea Street Honolulu HI 1 ILPT Owned Land 86 100.0% 719 3,476 3,476 12/5/2003 —
150 Puuhale Road Honolulu HI 1 ILPT Owned Land 123 100.0% 733 4,887 4,887 12/5/2003 —
151 Puuhale Road Honolulu HI 1 ILPT Owned Land 38 100.0% 337 1,956 1,956 12/5/2003 —
158 Sand Island Access Road Honolulu HI 1 ILPT Owned Land 101 100.0% 731 2,488 2,488 12/5/2003 —
165 Sand Island Access Road Honolulu HI 1 ILPT Owned Land 16 100.0% 115 758 758 12/5/2003 —
179 Sand Island Access Road Honolulu HI 1 ILPT Owned Land 62 100.0% 609 2,480 2,480 12/5/2003 —
180 Sand Island Access Road Honolulu HI 1 ILPT Owned Land 67 100.0% 555 1,655 1,655 12/5/2003 —
1926 Auiki Street Honolulu HI 1 ILPT Owned Industrial 42 100.0% 610 4,406 3,988 12/5/2003 1,959
1931 Kahai Street Honolulu HI 1 ILPT Owned Land 96 100.0% 934 3,779 3,779 12/5/2003 —
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 44
CONSOLID
ATED PROPERT
Y DE
TAI
L (CONTINUED
)
CONSOLIDATED PROPERTY DETAIL (CONTINUED)
(dollars and square feet in thousands) EXHIBIT AAs of December 31, 2017
(1) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value amortization, adjusted for tenant concessions including free rent and
amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
(2) Excludes the value of real estate intangibles.
(3) Date acquired is the date we acquired the property or the date our former parent entity acquired the property for those properties that our former parent entity contributed to us in February 2012 in connection with our initial public offering.
Number of Year
Buildings, Annualized Built or
Land Parcels Rental Undepreciated Depreciated Date Most Recent
Property City State and Easements Owner Property Type Square Feet % Leased Revenue (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation
197 Sand Island Access Road Honolulu HI 1 ILPT Owned Land 31 100.0% 209 1,238 1,238 12/5/2003 —
2001 Kahai Street Honolulu HI 1 ILPT Owned Land 27 100.0% 243 1,091 1,091 12/5/2003 —
2019 Kahai Street Honolulu HI 1 ILPT Owned Land 27 100.0% 218 1,377 1,377 12/5/2003 —
2020 Auiki Street Honolulu HI 1 ILPT Owned Land 47 100.0% 351 2,385 2,385 12/5/2003 —
204 Sand Island Access Road Honolulu HI 1 ILPT Owned Land 33 100.0% 256 1,689 1,689 12/5/2003 —
207 Puuhale Road Honolulu HI 1 ILPT Owned Land 40 100.0% 295 2,024 2,024 12/5/2003 —
2103 Kaliawa Street Honolulu HI 1 ILPT Owned Land 79 100.0% 677 3,212 3,212 12/5/2003 —
2106 Kaliawa Street Honolulu HI 1 ILPT Owned Land 31 100.0% 270 1,737 1,682 12/5/2003 —
2110 Auiki Street Honolulu HI 1 ILPT Owned Land 20 100.0% 256 837 837 12/5/2003 —
212 Mohonua Place Honolulu HI 1 ILPT Owned Land 46 100.0% 376 1,067 1,067 12/5/2003 —
2122 Kaliawa Street Honolulu HI 1 ILPT Owned Land 33 100.0% 322 1,365 1,365 12/5/2003 —
2127 Auiki Street Honolulu HI 1 ILPT Owned Land 57 100.0% 520 3,003 2,985 12/5/2003 —
2135 Auiki Street Honolulu HI 1 ILPT Owned Land 33 100.0% 255 825 825 12/5/2003 —
2139 Kaliawa Street Honolulu HI 1 ILPT Owned Land 22 100.0% 192 885 885 12/5/2003 —
214 Sand Island Access Road Honolulu HI 1 ILPT Owned Industrial 22 100.0% 406 2,267 2,238 12/5/2003 1981
2140 Kaliawa Street Honolulu HI 1 ILPT Owned Land 19 100.0% 147 931 931 12/5/2003 —
2144 Auiki Street Honolulu HI 1 ILPT Owned Industrial 54 97.4% 1,238 9,497 7,630 12/5/2003 1953
215 Puuhale Road Honolulu HI 1 ILPT Owned Land 42 100.0% 326 2,117 2,117 12/5/2003 —
218 Mohonua Place Honolulu HI 1 ILPT Owned Land 34 100.0% 266 1,741 1,741 12/5/2003 —
220 Puuhale Road Honolulu HI 1 ILPT Owned Land 66 100.0% 399 2,619 2,619 12/5/2003 —
2250 Pahounui Drive Honolulu HI 1 ILPT Owned Land 76 100.0% 553 3,862 3,862 12/5/2003 —
2264 Pahounui Drive Honolulu HI 1 ILPT Owned Land 33 100.0% 242 1,632 1,632 12/5/2003 —
2276 Pahounui Drive Honolulu HI 1 ILPT Owned Land 33 100.0% 241 1,619 1,619 12/5/2003 —
228 Mohonua Place Honolulu HI 1 ILPT Owned Land 37 100.0% 338 1,865 1,865 12/5/2003 —
2308 Pahounui Drive Honolulu HI 1 ILPT Owned Land 65 100.0% 456 3,314 3,314 12/5/2003 —
231 Sand Island Access Road Honolulu HI 1 ILPT Owned Land 19 100.0% 105 752 752 12/5/2003 —
231B Sand Island Access Road Honolulu HI 1 ILPT Owned Land 39 100.0% 249 1,539 1,539 12/5/2003 —
2344 Pahounui Drive Honolulu HI 1 ILPT Owned Land 144 100.0% 1,318 6,709 6,709 12/5/2003 —
238 Sand Island Access Road Honolulu HI 1 ILPT Owned Land 60 100.0% 527 2,273 2,273 12/5/2003 —
2635 Waiwai Loop A Honolulu HI 1 ILPT Owned Land 23 100.0% 209 1,284 1,161 12/5/2003 —
2635 Waiwai Loop B Honolulu HI 1 ILPT Owned Land 22 100.0% 205 1,282 1,245 12/5/2003 —
2760 Kam Highway Honolulu HI 1 ILPT Owned Land 29 100.0% 144 703 703 12/5/2003 —
2804 Kilihau Street Honolulu HI 1 ILPT Owned Land 34 100.0% 253 1,777 1,775 12/5/2003 —
2806 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 35 100.0% 275 1,801 1,801 12/5/2003 —
2808 Kam Highway Honolulu HI 1 ILPT Owned Land 13 100.0% 102 310 310 12/5/2003 —
2809 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 36 100.0% 273 1,837 1,837 12/5/2003 —
2810 Paa Street Honolulu HI 1 ILPT Owned Land 52 100.0% 414 3,340 3,340 12/5/2003 —
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 45
CONSOLID
ATED PROPERT
Y DE
TAI
L (CONTINUED
)
CONSOLIDATED PROPERTY DETAIL (CONTINUED)
(dollars and square feet in thousands) EXHIBIT AAs of December 31, 2017
(1) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value amortization, adjusted for tenant concessions including free rent and
amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
(2) Excludes the value of real estate intangibles.
(3) Date acquired is the date we acquired the property or the date our former parent entity acquired the property for those properties that our former parent entity contributed to us in February 2012 in connection with our initial public offering.
Number of Year
Buildings, Annualized Built or
Land Parcels Rental Undepreciated Depreciated Date Most Recent
Property City State and Easements Owner Property Type Square Feet % Leased Revenue (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation
2810 Pukoloa Street Honolulu HI 1 ILPT Owned Land 412 100.0% 2,644 27,699 27,699 12/5/2003 —
2812 Awaawaloa Street Honolulu HI 1 ILPT Owned Land 35 100.0% 271 1,803 1,801 12/5/2003 —
2814 Kilihau Street Honolulu HI 1 ILPT Owned Land 37 100.0% 278 1,925 1,925 12/5/2003 —
2815 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 35 100.0% 208 1,824 1,822 12/5/2003 —
2815 Kilihau Street Honolulu HI 1 ILPT Owned Land 12 100.0% 95 287 287 12/5/2003 —
2816 Awaawaloa Street Honolulu HI 1 ILPT Owned Land 44 100.0% 234 1,036 1,026 12/5/2003 —
2819 Mokumoa Street - A Honolulu HI 1 ILPT Owned Land 35 100.0% 270 1,821 1,821 12/5/2003 —
2819 Mokumoa Street - B Honolulu HI 1 ILPT Owned Land 35 100.0% 266 1,816 1,816 12/5/2003 —
2819 Pukoloa Street Honolulu HI 1 ILPT Owned Land 40 100.0% 281 2,124 2,116 12/5/2003 —
2821 Kilihau Street Honolulu HI 1 ILPT Owned Land 12 100.0% 97 287 287 12/5/2003 —
2826 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 70 100.0% 427 3,921 3,921 12/5/2003 —
2827 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 35 100.0% 269 1,801 1,801 12/5/2003 —
2828 Paa Street Honolulu HI 1 ILPT Owned Land 187 100.0% 1,494 12,448 12,448 12/5/2003 —
2829 Awaawaloa Street Honolulu HI 1 ILPT Owned Land 70 100.0% 517 1,723 1,721 12/5/2003 —
2829 Kaihikapu Street - A Honolulu HI 1 ILPT Owned Land 35 100.0% 271 1,801 1,801 12/5/2003 —
2829 Kilihau Street Honolulu HI 1 ILPT Owned Land 12 100.0% 95 287 287 12/5/2003 —
2829 Pukoloa Street Honolulu HI 1 ILPT Owned Land 40 100.0% 297 2,088 2,088 12/5/2003 —
2830 Mokumoa Street Honolulu HI 1 ILPT Owned Land 40 100.0% 292 2,146 2,146 12/5/2003 —
2831 Awaawaloa Street Honolulu HI 1 ILPT Owned Land 35 100.0% 267 860 860 12/5/2003 —
2831 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 35 100.0% 207 1,856 1,652 12/5/2003 —
2833 Kilihau Street Honolulu HI 1 ILPT Owned Land 12 100.0% 96 601 601 12/5/2003 —
2833 Paa Street Honolulu HI 1 ILPT Owned Land 30 100.0% 287 1,701 1,701 12/5/2003 —
2833 Paa Street #2 Honolulu HI 1 ILPT Owned Land 30 100.0% 287 1,675 1,675 12/5/2003 —
2836 Awaawaloa Street Honolulu HI 1 ILPT Owned Land 26 100.0% 142 1,353 1,353 12/5/2003 —
2838 Kilihau Street Honolulu HI 1 ILPT Owned Land 83 100.0% 646 4,262 4,262 12/5/2003 —
2839 Kilihau Street Honolulu HI 1 ILPT Owned Land 12 100.0% 106 627 627 12/5/2003 —
2839 Mokumoa Street Honolulu HI 1 ILPT Owned Land 35 100.0% 232 1,942 1,942 12/5/2003 —
2840 Mokumoa Street Honolulu HI 1 ILPT Owned Land 40 100.0% 298 2,149 2,149 12/5/2003 —
2841 Pukoloa Street Honolulu HI 1 ILPT Owned Land 40 100.0% 308 2,088 2,088 12/5/2003 —
2844 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 35 100.0% 255 1,974 1,963 12/5/2003 —
2846-A Awaawaloa Street Honolulu HI 1 ILPT Owned Land 61 100.0% 467 3,135 2,800 12/5/2003 —
2847 Awaawaloa Street Honolulu HI 1 ILPT Owned Land 35 100.0% 351 885 779 12/5/2003 —
2849 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 35 100.0% 275 860 860 12/5/2003 —
2850 Awaawaloa Street Honolulu HI 1 ILPT Owned Land 9 100.0% 65 458 397 12/5/2003 —
2850 Mokumoa Street Honolulu HI 1 ILPT Owned Land 40 100.0% 300 2,143 2,143 12/5/2003 —
2850 Paa Street Honolulu HI 1 ILPT Owned Land 298 100.0% 2,119 22,827 22,827 12/5/2003 —
2855 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 35 100.0% 314 1,807 1,807 12/5/2003 —
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 46
CONSOLID
ATED PROPERT
Y DE
TAI
L (CONTINUED
)
CONSOLIDATED PROPERTY DETAIL (CONTINUED)
(dollars and square feet in thousands) EXHIBIT AAs of December 31, 2017
(1) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value amortization, adjusted for tenant concessions including free rent and
amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
(2) Excludes the value of real estate intangibles.
(3) Date acquired is the date we acquired the property or the date our former parent entity acquired the property for those properties that our former parent entity contributed to us in February 2012 in connection with our initial public offering.
Number of Year
Buildings, Annualized Built or
Land Parcels Rental Undepreciated Depreciated Date Most Recent
Property City State and Easements Owner Property Type Square Feet % Leased Revenue (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation
2855 Pukoloa Street Honolulu HI 1 ILPT Owned Land 40 100.0% 285 1,934 1,934 12/5/2003 —
2857 Awaawaloa Street Honolulu HI 1 ILPT Owned Land 40 100.0% 306 983 983 12/5/2003 —
2858 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 35 100.0% 273 1,801 1,801 12/5/2003 —
2861 Mokumoa Street Honolulu HI 1 ILPT Owned Land 70 100.0% 423 3,867 3,867 12/5/2003 —
2864 Awaawaloa Street Honolulu HI 1 ILPT Owned Land 35 100.0% 281 1,843 1,840 12/5/2003 —
2864 Mokumoa Street Honolulu HI 1 ILPT Owned Land 40 100.0% 268 2,092 2,092 12/5/2003 —
2865 Pukoloa Street Honolulu HI 1 ILPT Owned Land 40 100.0% 294 1,934 1,934 12/5/2003 —
2868 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 35 100.0% 372 1,801 1,801 12/5/2003 —
2869 Mokumoa Street Honolulu HI 1 ILPT Owned Land 35 100.0% 282 1,794 1,794 12/5/2003 —
2875 Paa Street Honolulu HI 1 ILPT Owned Land 23 100.0% 227 1,330 1,330 12/5/2003 —
2879 Mokumoa Street Honolulu HI 1 ILPT Owned Land 35 100.0% 272 1,789 1,789 12/5/2003 —
2879 Paa Street Honolulu HI 1 ILPT Owned Land 31 100.0% 224 1,736 1,726 12/5/2003 —
2886 Paa Street Honolulu HI 1 ILPT Owned Land 60 100.0% 698 2,205 2,205 12/5/2003 —
2889 Mokumoa Street Honolulu HI 1 ILPT Owned Land 35 100.0% 280 1,783 1,783 12/5/2003 —
2906 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 35 100.0% 290 1,816 1,815 12/5/2003 —
2908 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 35 100.0% 356 1,810 1,809 12/5/2003 —
2915 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 105 100.0% 850 2,579 2,579 12/5/2003 —
2927 Mokumoa Street Honolulu HI 1 ILPT Owned Land 35 100.0% 263 1,778 1,778 12/5/2003 —
2928 Kaihikapu Street - B Honolulu HI 1 ILPT Owned Land 38 100.0% 285 1,948 1,948 12/5/2003 —
2960 Mokumoa Street Honolulu HI 1 ILPT Owned Land 38 100.0% 319 1,977 1,977 12/5/2003 —
2965 Mokumoa Street Honolulu HI 1 ILPT Owned Land 42 100.0% 333 2,140 2,140 12/5/2003 —
2969 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 80 100.0% 366 4,053 4,045 12/5/2003 —
2970 Mokumoa Street Honolulu HI 1 ILPT Owned Land 35 100.0% 286 1,722 1,722 12/5/2003 —
33 S. Vineyard Boulevard Honolulu HI 1 ILPT Owned Land 12 100.0% 107 850 845 12/5/2003 —
525 N. King Street Honolulu HI 1 ILPT Owned Land 21 100.0% 237 1,342 1,342 12/5/2003 —
609 Ahua Street Honolulu HI 1 ILPT Owned Land 24 100.0% 210 624 620 12/5/2003 —
619 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 55 100.0% 523 1,415 1,415 12/5/2003 —
645 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% 262 882 882 12/5/2003 —
659 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% 255 880 865 12/5/2003 —
659 Puuloa Road Honolulu HI 1 ILPT Owned Land 35 100.0% 270 1,807 1,807 12/5/2003 —
660 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% 192 1,786 1,784 12/5/2003 —
667 Puuloa Road Honolulu HI 1 ILPT Owned Land 35 100.0% 285 862 860 12/5/2003 —
669 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% — 1,898 1,861 12/5/2003 —
673 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% 257 1,801 1,801 12/5/2003 —
675 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 30 100.0% 223 1,081 1,081 12/5/2003 —
679 Puuloa Road Honolulu HI 1 ILPT Owned Land 35 100.0% 270 1,810 1,808 12/5/2003 —
685 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% 266 1,801 1,801 12/5/2003 —
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 47
CONSOLID
ATED PROPERT
Y DE
TAI
L (CONTINUED
)
CONSOLIDATED PROPERTY DETAIL (CONTINUED)
(dollars and square feet in thousands) EXHIBIT AAs of December 31, 2017
(1) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value amortization, adjusted for tenant concessions including free rent and
amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
(2) Excludes the value of real estate intangibles.
(3) Date acquired is the date we acquired the property or the date our former parent entity acquired the property for those properties that our former parent entity contributed to us in February 2012 in connection with our initial public offering.
Number of Year
Buildings, Annualized Built or
Land Parcels Rental Undepreciated Depreciated Date Most Recent
Property City State and Easements Owner Property Type Square Feet % Leased Revenue (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation
689 Puuloa Road Honolulu HI 1 ILPT Owned Land 35 100.0% 270 1,821 1,806 12/5/2003 —
692 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 35 100.0% 296 1,798 1,798 12/5/2003 —
697 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% 297 1,805 1,519 12/5/2003 —
702 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% 264 1,787 1,784 12/5/2003 —
704 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 59 100.0% 462 3,075 2,834 12/5/2003 —
709 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% 323 1,801 1,801 12/5/2003 —
719 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% 291 1,960 1,960 12/5/2003 —
729 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% 227 1,801 1,801 12/5/2003 —
733 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 65 100.0% 666 3,403 3,403 12/5/2003 —
739 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% 233 1,801 1,801 12/5/2003 —
759 Puuloa Road Honolulu HI 1 ILPT Owned Land 34 100.0% 264 1,769 1,767 12/5/2003 —
761 Ahua Street Honolulu HI 1 ILPT Owned Land 73 100.0% 540 3,758 3,757 12/5/2003 —
766 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 35 100.0% 274 1,801 1,801 12/5/2003 —
770 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 35 100.0% 339 1,801 1,801 12/5/2003 —
789 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 47 100.0% 254 2,611 2,609 12/5/2003 —
80 Sand Island Access Road Honolulu HI 1 ILPT Owned Land 191 100.0% 1,539 7,972 7,972 12/5/2003 —
803 Ahua Street Honolulu HI 1 ILPT Owned Land 73 100.0% 707 3,804 3,804 12/5/2003 —
808 Ahua Street Honolulu HI 1 ILPT Owned Land 57 100.0% 456 3,279 3,279 12/5/2003 —
812 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 35 100.0% 262 2,613 2,613 12/5/2003 —
819 Ahua Street Honolulu HI 1 ILPT Owned Land 105 100.0% 1,024 5,434 5,219 12/5/2003 —
822 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 35 100.0% 316 1,810 1,798 12/5/2003 —
830 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 35 100.0% 268 1,826 1,808 12/5/2003 —
842 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 35 100.0% 309 1,809 1,799 12/5/2003 —
846 Ala Lilikoi Boulevard B Honolulu HI 1 ILPT Owned Land 8 100.0% 41 234 234 12/5/2003 —
848 Ala Lilikoi Boulevard A Honolulu HI 1 ILPT Owned Land 326 100.0% 1,681 9,426 9,426 12/5/2003 —
850 Ahua Street Honolulu HI 1 ILPT Owned Land 48 100.0% 261 2,684 2,682 12/5/2003 —
852 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 35 100.0% 273 1,801 1,801 12/5/2003 —
855 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% 212 1,834 1,834 12/5/2003 —
855 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 63 100.0% 494 3,265 3,265 12/5/2003 —
865 Ahua Street Honolulu HI 1 ILPT Owned Land 36 100.0% 307 1,846 1,846 12/5/2003 —
889 Ahua Street Honolulu HI 1 ILPT Owned Land 49 100.0% 406 6,203 6,163 11/21/2012 —
905 Ahua Street Honolulu HI 1 ILPT Owned Land 21 100.0% 167 1,148 1,148 12/5/2003 —
918 Ahua Street Honolulu HI 1 ILPT Owned Land 72 100.0% 454 3,820 3,820 12/5/2003 —
930 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 69 100.0% 509 3,654 3,654 12/5/2003 —
944 Ahua Street Honolulu HI 1 ILPT Owned Land 27 100.0% 205 1,219 1,219 12/5/2003 —
949 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 237 100.0% 1,597 11,568 11,568 12/5/2003 —
950 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 33 100.0% 258 1,724 1,724 12/5/2003 —
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 48
CONSOLID
ATED PROPERT
Y DE
TAI
L (CONTINUED
)
CONSOLIDATED PROPERTY DETAIL (CONTINUED)
(dollars and square feet in thousands) EXHIBIT AAs of December 31, 2017
(1) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value amortization, adjusted for tenant concessions including free rent and
amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
(2) Excludes the value of real estate intangibles.
(3) Date acquired is the date we acquired the property or the date our former parent entity acquired the property for those properties that our former parent entity contributed to us in February 2012 in connection with our initial public offering.
Number of Year
Buildings, Annualized Built or
Land Parcels Rental Undepreciated Depreciated Date Most Recent
Property City State and Easements Owner Property Type Square Feet % Leased Revenue (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation
960 Ahua Street Honolulu HI 1 ILPT Owned Land 14 100.0% 117 614 614 12/5/2003 —
960 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 37 100.0% 305 1,933 1,933 12/5/2003 —
970 Ahua Street Honolulu HI 1 ILPT Owned Land 15 100.0% 125 817 817 12/5/2003 —
91-008 Hanua Kapolei HI 1 SIR 100% Owned Land 417 —% — 3,556 3,554 6/15/2005 —
91-027 Kaomi Loop Kapolei HI 1 ILPT Owned Land 214 100.0% 296 2,667 2,667 6/15/2005 —
91-064 Kaomi Loop Kapolei HI 1 ILPT Owned Land 99 100.0% 321 1,826 1,826 6/15/2005 —
91-080 Hanua Kapolei HI 1 ILPT Owned Land 217 100.0% 501 2,187 2,187 6/15/2005 —
91-083 Hanua Kapolei HI 1 ILPT Owned Land 47 100.0% 126 716 716 6/15/2005 —
91-086 Kaomi Loop Kapolei HI 1 ILPT Owned Land 1,242 100.0% 1,809 13,884 13,884 6/15/2005 —
91-087 Hanua Kapolei HI 1 ILPT Owned Land 22 100.0% 68 381 381 6/15/2005 —
91-091 Hanua Kapolei HI 1 ILPT Owned Land 41 100.0% 103 552 552 6/15/2005 —
91-102 Kaomi Loop Kapolei HI 1 ILPT Owned Land 99 100.0% 249 1,599 1,599 6/15/2005 —
91-110 Kaomi Loop Kapolei HI 1 ILPT Owned Land 99 100.0% 232 1,293 1,293 6/15/2005 —
91-119 Olai Kapolei HI 1 ILPT Owned Land 98 100.0% 225 1,981 1,981 6/15/2005 —
91-120 Kauhi Kapolei HI 1 ILPT Owned Land 44 100.0% 122 567 567 6/15/2005 —
91-141 Kalaeloa Kapolei HI 1 ILPT Owned Land 910 100.0% 1,693 11,624 11,624 6/15/2005 —
91-150 Hanua Kapolei HI 1 SIR 100% Owned Land 418 —% — 5,829 5,829 6/15/20015 —
91-150 Kaomi Loop Kapolei HI 1 ILPT Owned Land 250 100.0% 421 3,159 3,159 6/15/2005 —
91-171 Olai Kapolei HI 1 ILPT Owned Land 24 100.0% 52 230 230 6/15/2005 —
91-174 Olai Kapolei HI 1 ILPT Owned Land 58 100.0% 146 1,009 996 6/15/2005 —
91-175 Olai Kapolei HI 1 ILPT Owned Land 48 100.0% 71 1,286 1,271 6/15/2005 —
91-185 Kalaeloa Kapolei HI 1 ILPT Owned Land 122 100.0% 236 1,761 1,761 6/15/2005 —
91-202 Kalaeloa Kapolei HI 1 ILPT Owned Industrial 84 100.0% 355 2,048 2,011 6/15/2005 1964
91-209 Kuhela Kapolei HI 1 SIR 100% Owned Land 109 100.0% — 1,378 1,378 6/15/2005 —
91-210 Olai Kapolei HI 1 ILPT Owned Land 54 100.0% 140 706 706 6/15/2005 —
91-218 Olai Kapolei HI 1 ILPT Owned Land 107 100.0% 206 1,684 1,670 6/15/2005 —
91-220 Kalaeloa Kapolei HI 1 ILPT Owned Industrial 23 100.0% 315 1,871 1,379 6/15/2005 1991
91-222 Olai Kapolei HI 1 ILPT Owned Land 158 100.0% 378 2,035 2,035 6/15/2005 —
91-238 Kauhi Kapolei HI 1 ILPT Owned Industrial 85 100.0% 1,333 10,599 8,225 6/15/2005 1981
91-241 Kalaeloa Kapolei HI 1 ILPT Owned Industrial 45 100.0% 634 5,237 3,803 6/15/2005 1990
91-250 Komohana Kapolei HI 1 ILPT Owned Land 107 100.0% 296 1,506 1,506 6/15/2005 —
91-252 Kauhi Kapolei HI 1 ILPT Owned Land 43 100.0% 105 536 536 6/15/2005 —
91-255 Hanua Kapolei HI 1 ILPT Owned Land 95 100.0% 218 1,274 1,249 6/15/2005 —
91-259 Olai Kapolei HI 1 ILPT Owned Land 131 100.0% 283 2,944 2,944 6/15/2005 —
91-265 Hanua Kapolei HI 1 ILPT Owned Land 95 100.0% 222 1,569 1,569 6/15/2005 —
91-300 Hanua Kapolei HI 1 ILPT Owned Land 107 100.0% 268 1,381 1,381 6/15/2005 —
91-329 Kauhi Kapolei HI 1 ILPT Owned Industrial 48 87.9% 720 4,827 3,646 6/15/2005 2013
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 49
CONSOLID
ATED PROPERT
Y DE
TAI
L (CONTINUED
)
CONSOLIDATED PROPERTY DETAIL (CONTINUED)
(dollars and square feet in thousands) EXHIBIT AAs of December 31, 2017
(1) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value amortization, adjusted for tenant concessions including free rent and
amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
(2) Excludes the value of real estate intangibles.
(3) Date acquired is the date we acquired the property or the date our former parent entity acquired the property for those properties that our former parent entity contributed to us in February 2012 in connection with our initial public offering.
(4) Excludes annual tenant percentage rent generally received and recognized during the first quarter of each year for the previous year. Percentage rent recognized during the first quarter of 2017 totaled $650.
(5) Land parcels include easements.
Number of Year
Buildings, Annualized Built or
Land Parcels Rental Undepreciated Depreciated Date Most Recent
Property City State and Easements Owner Property Type Square Feet % Leased Revenue (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation
91-349 Kauhi Kapolei HI 1 ILPT Owned Land 48 100.0% 119 649 649 6/15/2005 —
91-399 Kauhi Kapolei HI 1 ILPT Owned Land 2,234 100.0% 2,661 27,405 27,405 6/15/2005 —
91-400 Komohana Kapolei HI 1 ILPT Owned Land 96 100.0% 236 1,494 1,494 6/15/2005 —
91-410 Komohana Kapolei HI 1 ILPT Owned Land 21 100.0% 52 429 429 6/15/2005 —
91-416 Komohana Kapolei HI 1 ILPT Owned Land 27 100.0% 69 724 724 6/15/2005 —
AES HI Easement Kapolei HI 1 ILPT Owned Land (5) — —% — 1,250 1,250 6/15/2005 —
Other Easements & Lots Kapolei HI 1 ILPT Owned Land (5) — —% — 1,604 1,319 6/15/2005 —
Tesaro 967 Easement Kapolei HI 1 ILPT Owned Land (4) (5) — —% — 6,593 6,593 6/15/2005 —
Texaco Easement Kapolei HI 1 ILPT Owned Land (5) — —% — 2,653 2,653 6/15/2005 —
94-240 Pupuole Street Waipahu HI 1 ILPT Owned Land 44 100.0% 252 717 717 12/5/2003 —
5500 SE Delaware Avenue Ankeny IA 1 ILPT Owned Industrial 450 100.0% 1,684 19,194 17,955 1/29/2015 2012
951 Trails Road Eldridge IA 1 ILPT Owned Industrial 172 100.0% 1,019 8,695 6,586 4/2/2007 2001
8305 NW 62nd Avenue Johnston IA 1 SIR 100% Owned Office 199 100.0% 3,240 34,008 31,711 1/29/2015 2011
2300 N 33rd Avenue Newton IA 1 ILPT Owned Industrial 317 100.0% 1,458 14,140 11,042 9/29/2008 2008
7121 South Fifth Avenue Pocatello ID 1 ILPT Owned Industrial 33 100.0% 370 4,746 4,436 1/29/2015 2007
400 South Jefferson Street Chicago IL 1 SIR 100% Owned Office 248 100.0% 9,648 90,479 85,136 1/29/2015 2012
1230 West 171st Street Harvey IL 1 ILPT Owned Industrial 40 100.0% 442 2,473 2,351 1/29/2015 2004
475 Bond Street Lincolnshire IL 1 SIR 100% Owned Industrial 223 100.0% 1,638 20,958 19,787 1/29/2015 2000
1415 West Diehl Road Naperville IL 1 SIR 100% Owned Office 820 100.0% 16,766 188,475 172,095 4/1/2014 2001
5156 American Road Rockford IL 1 ILPT Owned Industrial 38 100.0% 173 1,929 1,818 1/29/2015 1996
440 North Fairway Drive Vernon Hills IL 1 SIR 100% Owned Office 100 100.0% 1,692 13,977 12,927 10/15/2013 2009
7601 Genesys Way Indianapolis IN 1 SIR 100% Owned Office 120 100.0% 1,888 12,253 12,140 7/19/2017 2003
7635 Genesys Way Indianapolis IN 1 SIR 100% Owned Office 155 100.0% 2,434 16,226 16,076 7/19/2017 2008
400 SW 8th Avenue Topeka KS 1 SIR 100% Owned Office 144 100.0% 2,654 17,674 15,473 7/30/2012 2006
1101 Pacific Avenue Erlanger KY 1 SIR 100% Owned Office 86 100.0% 1,189 12,300 8,160 6/30/2003 1999
1061 Pacific Avenue Erlanger KY — SIR 100% Owned Land — —% 66 732 732 6/30/2003 —
17200 Manchac Park Lane Baton Rouge LA 1 ILPT Owned Industrial 125 100.0% 885 10,560 9,914 1/29/2015 2014
209 South Bud Street Lafayette LA 1 ILPT Owned Industrial 60 100.0% 511 5,258 4,926 1/29/2015 2010
300 Billerica Road Chelmsford MA 1 SIR 100% Owned Office 111 100.0% 1,562 8,756 7,873 9/27/2012 2006
330 Billerica Road Chelmsford MA 1 SIR 100% Owned Office 98 —% — 9,919 8,563 1/18/2011 1996
111 Powdermill Road Maynard MA 1 SIR 100% Owned Office 287 —% — 17,260 17,099 3/30/2007 1990
314 Littleton Road Westford MA 1 SIR 100% Owned Office 175 100.0% 4,764 33,944 31,724 1/29/2015 2013
7001 Columbia Gateway Drive Columbia MD 1 SIR 100% Owned Office 120 100.0% 3,741 28,292 25,218 12/21/2012 2008
4000 Principio Parkway North East MD 1 ILPT Owned Industrial 1,195 100.0% 5,862 76,328 71,112 1/29/2015 2012
3550 Green Court Ann Arbor MI 1 SIR 100% Owned Office 82 100.0% 1,625 13,018 11,664 12/21/2012 1998
3800 Midlink Drive Kalamazoo MI 1 ILPT Owned Industrial 158 100.0% 2,184 43,229 40,269 1/29/2015 2014
2401 Cram Avenue SE Bemidji MN 1 ILPT Owned Industrial 22 100.0% 183 2,237 2,081 1/29/2015 2013
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 50
CONSOLID
ATED PROPERT
Y DE
TAI
L (CONTINUED
)
CONSOLIDATED PROPERTY DETAIL (CONTINUED)
(dollars and square feet in thousands) EXHIBIT AAs of December 31, 2017
(1) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value amortization, adjusted for tenant concessions including free rent and
amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
(2) Excludes the value of real estate intangibles.
(3) Date acquired is the date we acquired the property or the date our former parent entity acquired the property for those properties that our former parent entity contributed to us in February 2012 in connection with our initial public offering.
Number of Year
Buildings, Annualized Built or
Land Parcels Rental Undepreciated Depreciated Date Most Recent
Property City State and Easements Owner Property Type Square Feet % Leased Revenue (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation
110 Stanbury Industrial Drive Brookfield MO 1 ILPT Owned Industrial 16 100.0% 189 2,059 1,923 1/29/2015 2012
2555 Grand Boulevard Kansas City MO 1 SIR 100% Owned Office 596 100.0% 18,084 79,069 74,582 7/31/2015 2003
628 Patton Avenue Asheville NC 1 ILPT Owned Industrial 33 100.0% 199 2,014 1,904 1/29/2015 1994
2300 Yorkmont Road Charlotte NC 1 SIR 100% Owned Office 151 100.0% 3,343 25,588 23,850 1/29/2015 1995
2400 Yorkmont Road Charlotte NC 1 SIR 100% Owned Office 133 100.0% 2,931 22,835 21,286 1/29/2015 1995
3900 NE 6th Street Minot ND 1 ILPT Owned Industrial 24 100.0% 310 3,923 3,688 1/29/2015 2013
1415 West Commerce Way Lincoln NE 1 ILPT Owned Industrial 222 100.0% 1,094 10,718 10,097 1/29/2015 2000
18010 and 18020 Burt Street Omaha NE 2 SIR 100% Owned Office 203 100.0% 3,991 49,842 46,398 1/29/2015 2012
309 Dulty's Lane Burlington NJ 1 ILPT Owned Industrial 634 100.0% 3,387 53,000 49,253 1/29/2015 2001
500 Charles Ewing Boulevard Ewing NJ 1 SIR 100% Owned Office 250 100.0% 5,949 74,374 69,337 1/29/2015 2012
725 Darlington Avenue Mahwah NJ 1 ILPT Owned Industrial 167 100.0% 2,301 18,637 17,736 4/9/2014 2010
299 Jefferson Road Parsippany NJ 1 SIR 100% Owned Office 151 100.0% 4,016 31,064 29,161 1/29/2015 2011
One Jefferson Road Parsippany NJ 1 SIR 100% Owned Office 100 100.0% 4,225 19,157 18,349 11/13/2015 2009
2375 East Newlands Road Fernley NV 1 ILPT Owned Industrial 338 100.0% 1,489 18,700 17,415 1/29/2015 2007
55 Commerce Avenue Albany NY 1 ILPT Owned Industrial 125 100.0% 1,089 11,284 10,534 1/29/2015 2013
8687 Carling Road Liverpool NY 1 SIR 100% Owned Office 38 100.0% 751 5,564 4,055 1/6/2006 2007
1212 Pittsford - Victor Road Pittsford NY 1 SIR 100% Owned Office 55 100.0% 1,024 5,531 4,062 11/30/2004 2003
500 Canal View Boulevard Rochester NY 1 SIR 100% Owned Office 95 100.0% 1,552 14,203 10,451 1/6/2006 1997
32150 Just Imagine Drive Avon OH 1 ILPT Owned Industrial 645 100.0% 3,479 25,480 20,485 5/29/2009 2000
1415 Industrial Drive Chillicothe OH 1 ILPT Owned Industrial 44 100.0% 362 4,465 4,227 1/29/2015 2012
2231 Schrock Road Columbus OH 1 SIR 100% Owned Office 42 100.0% 661 5,633 5,292 1/29/2015 1999
5300 Centerpoint Parkway Groveport OH 1 ILPT Owned Industrial 581 100.0% 2,905 32,563 30,385 1/29/2015 2014
200 Orange Point Drive Lewis Center OH 1 ILPT Owned Industrial 125 100.0% 1,032 9,913 9,285 1/29/2015 2013
301 Commerce Drive South Point OH 1 ILPT Owned Industrial 75 100.0% 487 5,130 4,800 1/29/2015 2013
2820 State Highway 31 McAlester OK 1 ILPT Owned Industrial 59 100.0% 787 6,912 6,716 1/29/2015 2017
501 Ridge Avenue Hanover PA 1 SIR 100% Owned Industrial 502 —% — 27,030 21,867 9/24/2008 1965
8800 Tinicum Boulevard Philadelphia PA 1 SIR 100% Owned Office 441 100.0% 6,445 71,320 66,421 1/29/2015 2000
9680 Old Bailes Road Fort Mill SC 1 SIR 100% Owned Office 60 100.0% 772 8,857 8,270 1/29/2015 2007
996 Paragon Way Rock Hill SC 1 ILPT Owned Industrial 945 100.0% 3,041 38,520 35,901 1/29/2015 2014
510 John Dodd Road Spartanburg SC 1 ILPT Owned Industrial 1,016 100.0% 4,644 61,298 57,070 1/29/2015 2012
4836 Hickory Hill Road Memphis TN 1 ILPT Owned Industrial 646 100.0% 1,382 12,698 11,869 12/23/2014 2007
2020 Joe B. Jackson Parkway Murfreesboro TN 1 ILPT Owned Industrial 1,016 100.0% 5,016 62,759 58,731 1/29/2015 2012
16001 North Dallas Parkway Addison TX 2 SIR 100% Owned Office 554 100.0% 14,314 106,312 94,545 1/16/2013 1996
2115-2116 East Randol Mill Road Arlington TX 1 SIR 100% Owned Office 183 100.0% 1,044 13,242 12,100 1/29/2015 1989
Research Park-Cisco Building 3 Austin TX 1 SIR 100% Owned Industrial 55 100.0% 1,055 5,966 3,577 6/16/1999 1999
Research Park-Cisco Building 4 Austin TX 1 SIR 100% Owned Industrial 94 100.0% 1,948 10,007 5,941 6/16/1999 1999
1001 Noble Energy Way Houston TX 1 SIR 100% Owned Office 497 100.0% 14,683 122,194 113,563 1/29/2015 2013
Select Income REIT
Supplemental Operating and Financial Data, December 31, 2017 51
CONSOLID
ATED PROPERT
Y DE
TAI
L (CONTINUED
)
CONSOLIDATED PROPERTY DETAIL (CONTINUED)
(dollars and square feet in thousands) EXHIBIT AAs of December 31, 2017
(1) We define annualized rental revenues as the annualized contractual rents, as of December 31, 2017, including straight line rent adjustments and excluding lease value amortization, adjusted for tenant concessions including free rent and
amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants.
(2) Excludes the value of real estate intangibles.
(3) Date acquired is the date we acquired the property or the date our former parent entity acquired the property for those properties that our former parent entity contributed to us in February 2012 in connection with our initial public offering.
Number of Year
Buildings, Annualized Built or
Land Parcels Rental Undepreciated Depreciated Date Most Recent
Property City State and Easements Owner Property Type Square Feet % Leased Revenue (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation
10451 Clay Road Houston TX 1 SIR 100% Owned Office 97 100.0% 2,173 27,012 25,422 1/29/2015 2013
202 North Castlegory Road Houston TX 1 SIR 100% Owned Office 84 100.0% 2,857 13,481 13,271 5/12/2017 2016
6380 Rogerdale Road Houston TX 1 SIR 100% Owned Office 206 100.0% 5,628 46,932 44,506 1/29/2015 2006
4221 W. John Carpenter Freeway Irving TX 1 SIR 100% Owned Office 54 100.0% 938 5,678 3,077 3/19/1998 1995
8675, 8701-8711 Freeport Pkwy and 8901 Esters Blvd Irving TX 3 SIR 100% Owned Office 458 100.0% 6,038 81,610 76,556 1/29/2015 1990
1511 East Common Street New Braunfels TX 1 SIR 100% Owned Office 63 100.0% 1,077 14,412 13,558 1/29/2015 2005
2900 West Plano Parkway Plano TX 1 SIR 100% Owned Office 191 100.0% 1,420 27,491 25,866 1/29/2015 1998
3400 West Plano Parkway Plano TX 1 SIR 100% Owned Office 235 100.0% 1,485 34,448 32,159 1/29/2015 1994
19100 Ridgewood Parkway San Antonio TX 1 SIR 100% Owned Office 618 100.0% 13,809 192,538 178,834 1/29/2015 2008
3600 Wiseman Boulevard San Antonio TX 1 SIR 100% Owned Office 100 100.0% 3,054 15,458 14,003 3/19/2013 2004
1800 Novell Place Provo UT 1 SIR 100% Owned Office 406 100.0% 7,940 85,640 74,621 6/1/2012 2000
4885-4931 North 300 West Provo UT 2 SIR 100% Owned Office 125 100.0% 3,680 29,338 26,204 2/28/2013 2009
1095 South 4800 West Salt Lake City UT 1 ILPT Owned Industrial 150 100.0% 1,122 8,413 7,909 1/29/2015 2012
1901 Meadowville Technology Parkway Chester VA 1 ILPT Owned Industrial 1,016 100.0% 6,328 71,511 66,589 1/29/2015 2012
Two Commercial Place Norfolk VA 1 SIR 100% Owned Office 289 100.0% 5,561 37,002 36,460 4/28/2017 2016
1910 East Parham Road Richmond VA 1 SIR 100% Owned Office 29 100.0% 445 3,152 3,009 7/20/2015 2014
1920 East Parham Road Richmond VA 1 SIR 100% Owned Office 34 100.0% 574 3,870 3,697 7/20/2015 2014
1950 East Parham Road Richmond VA 1 SIR 100% Owned Office 26 100.0% 568 2,856 2,726 7/20/2015 2012
501 South 5th Street Richmond VA 1 SIR 100% Owned Office 311 100.0% 10,863 123,922 111,564 7/2/2013 2009
9201 Forest Hill Avenue Richmond VA 1 SIR 100% Owned Office 50 100.0% 1,106 6,094 5,943 10/12/2016 1985
1751 Blue Hills Drive Roanoke VA 1 SIR 100% Owned Industrial 399 100.0% 1,874 23,760 22,288 1/29/2015 2003
45101 Warp Drive Sterling VA 1 SIR 100% Owned Office 161 100.0% 4,848 34,298 30,493 11/29/2012 2001
45201 Warp Drive Sterling VA 1 SIR 100% Owned Office 88 100.0% 2,723 18,933 16,875 11/29/2012 2000
45301 Warp Drive Sterling VA 1 SIR 100% Owned Office 88 100.0% 2,695 18,933 16,883 11/29/2012 2000
181 Battaile Drive Winchester VA 1 ILPT Owned Industrial 308 100.0% 1,467 14,341 10,577 4/20/2006 1987
351, 401, 501 Elliott Ave West Seattle WA 3 SIR 100% Owned Office 300 100.0% 13,283 130,188 123,282 1/29/2015 2000
366 — 45,496 — —$ 470,452 —$ 4,225,694 —$ 3,911,445 2006
SIR (excluding ILPT) 100 16,956 $ 314,808 $ 2,882,092 $ 2,642,457
ILPT 266 28,540 155,644 1,343,602 1,268,988
Total 366 45,496 $ 470,452 $ 4,225,694 $ 3,911,445
