NEWTON, Mass.--(BUSINESS WIRE)--
Industrial Logistics Properties Trust Announces Agreement to Change the Comparative Index for Determining the Incentive Fee Payable to its Manager under its Business Management Agreement
Industrial Logistics Properties Trust (ILPT) today announced that Select Income REIT (SIR) has informed it that SIR has completed the distribution of 45,000,000 common shares of ILPT that SIR owned. SIR has announced that it completed this distribution on December 27, 2018 and that it paid the distribution to the holders of SIR’s common shares outstanding as of the close of business on December 20, 2018.
ILPT also announced that the Compensation Committee of its Board of Trustees has approved an amendment to ILPT’s business management agreement with The RMR Group LLC, the operating subsidiary of The RMR Group Inc. (RMR). Pursuant to the amendment, for periods beginning on and after January 1, 2019, the business management agreement will use the SNL U.S. Industrial REIT Index, rather than the SNL U.S. REIT Equity Index, to calculate the benchmark return per share for purposes of determining the incentive management fee, if any, payable to RMR. Measurement periods prior to January 1, 2019 will continue to use the legacy benchmark index. Please see ILPT’s 2017 Annual Report on Form 10-K for the year-ended December 31, 2017 for additional detail on the incentive management fee.
John Murray, ILPT’s President and Chief Executive Officer, made the following statement about today’s announcement:
“We believe that the elimination of SIR’s ownership control will improve liquidity in ILPT’s common shares and improve its trading multiple. Also, based on feedback from analysts and investors that we have received over the past year, management is of the view, and the Compensation Committee of the Board of Trustees agreed, that the SNL U.S. Industrial REIT Index is a more appropriate benchmark comparison for ILPT.”
Industrial Logistics Properties Trust is a real estate investment trust, or REIT, that owns and leases industrial and logistics properties throughout the United States. ILPT is managed by the operating subsidiary of The RMR Group Inc. (RMR), an alternative asset management company that is headquartered in Newton, MA.
WARNING REGARDING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON ILPT'S PRESENT BELIEFS AND EXPECTATIONS, BUT THESE STATEMENTS AND THE IMPLICATIONS OF THESE STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR FOR VARIOUS REASONS, SOME OF WHICH ARE BEYOND ILPT'S CONTROL. FOR EXAMPLE:
- THIS NEWS RELEASE STATES ILPT’S BELIEF THAT THE ELIMINATION OF SIR’S OWNERSHIP CONTROL WILL IMPROVE ILPT’S LIQUIDITY AND TRADING MULTIPLE IN ITS COMMON SHARES. HOWEVER, THE LIQUIDITY AND TRADING MULTIPLE FOR ILPT’S COMMON SHARES WILL DEPEND ON NUMEROUS FACTORS, INCLUDING MARKET CONDITIONS AND OTHER FACTORS BEYOND ILPT’S CONTROL. THERE CAN BE NO ASSURANCE THAT ILPT’S COMMON SHARES WILL TRADE WITH IMPROVED LIQUIDITY OR WITH A HIGHER MULTIPLE AND THE TRADING LIQUIDITY AND MULTIPLE FOR ILPT’S COMMON SHARES MAY DECLINE.
FOR THESE REASONS, AMONG OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON ANY FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE. EXCEPT AS REQUIRED BY LAW, ILPT DOES NOT INTEND TO UPDATE OR CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.