I think it quite likely SIR will be buying more office/industrial properties and this offering is part of the launching pad. This is merely a prediction based on my knowledge of the RMR comanies, is that a preferred offering wil follow, both equity platforms will support similar debt. Assets will approx. double within 12-18 months. Again, just a prediction...can't say if its good or bad.
I'm okay with the offering since it is slightly accretive to book value. It will tend to move SIR further away from the Hawaii focus, which is a key reason (for me) to own it, so I will be watching that trend over time.
Based on the numbers in the recent filing with the SEC it looks like the pro forma net income is close to 2.10 per share and FFO comes in at 2.61,both on a yearly basis.
If correct the div has to go up to at least 90% of net income(assuming that net income is close to taxable income).
Net income is very high because Hawaii is all land therefore no depreciation to take which usually lowers most reits taxable income considerably.