1 7958 South Chester Street, Centennial, CO Square Feet: 167,917 United Launch Alliance Corporate Headquarters First Quarter 2018 Supplemental Operating and Financial Data Select Income REIT Exhibit 99.2 Two Commercial Place, Norfolk, VA Square Feet: 288,662 Tenant: ADP, LLC All amounts in this report are unaudited.
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 2 TABLE OF CONTENT S TABLE OF CONTENTS PAGE/EXHIBIT CORPORATE INFORMATION Company Profile 7 Investor Information 8 Research Coverage 9 FINANCIALS Key Consolidated Financial Data 11 Condensed Consolidated Balance Sheets 12 Condensed Consolidated Statements of Income 13 Condensed Consolidated Statements of Cash Flows 15 Financial Information by Owner 17 Consolidated Debt Summary 18 Consolidated Debt Maturity Schedule 20 Consolidated Leverage Ratios, Coverage Ratios and Public Debt Covenants 21 Consolidated Capital Expenditures Summary 22 Consolidated Property Acquisitions and Dispositions Information Since 1/1/18 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 and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI by Segment 27 Calculation of EBITDA and Adjusted EBITDA 28 Calculation of Funds from Operations (FFO) Attributed to SIR and Normalized FFO Attributed to SIR 29 Definitions of Certain Non-GAAP Financial Measures 30 PORTFOLIO INFORMATION Consolidated Portfolio Summary by Owner 32 Consolidated Same Property Results of Operations 33 Leasing Summaries: Consolidated 35 SIR (excluding ILPT) 36 ILPT 37 Consolidated Occupancy and Leasing Analysis by Owner 38 Consolidated Tenant Diversity and Credit Characteristics 39 Tenants Representing 1% or More of Total Consolidated Annualized Rental Revenues 40 Consolidated Three Year Lease Expiration Schedule by Owner 41 Portfolio Lease Expiration Schedules: Consolidated 42 SIR (excluding ILPT) 43 ILPT 44 Hawaii Land Rent Reset Summary 45 EXHIBIT A Consolidated Property Detail 47 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 its majority owned subsidiary, 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.
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 3 W ARNING CONCERNING FO RW ARD LOOKING S TA TEMENT S 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 ILPT IPO 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, AND ILPT'S QUALIFICATION FOR TAXATION AS A 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, March 31, 2018 4 W ARNING CONCERNING FO RW ARD LOOKING S TA TEMENTS (CONTINUED ) • 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, OUR WORKING CAPITAL REQUIREMENTS AND OUR RECEIPT OF DISTRIBUTIONS FROM ILPT. 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 ANY EXPECTED 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 OUR PREDECESSOR'S 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, • AS OF MARCH 31, 2018, WE HAD ESTIMATED LEASING RELATED OBLIGATIONS OF $32.7 MILLION. OUR LEASING RELATED OBLIGATIONS MAY COST MORE OR LESS AND MAY TAKE LONGER TO COMPLETE THAN WE EXPECT, AND OUR LEASING RELATED OBLIGATIONS MAY INCREASE, • 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, • OUR EXPECTATION THAT THE RENTS WE MAY RECEIVE FROM OUR HAWAII LANDS MAY INCREASE IN THE FUTURE 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, • INCREASING DEVELOPMENT OF INDUSTRIAL AND LOGISTICS PROPERTIES MAY REDUCE THE DEMAND FOR, AND ILPT'S RENTS FROM, ILPT'S PROPERTIES, WARNING CONCERNING FORWARD LOOKING STATEMENTS (CONTINUED)
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 5 W ARNING CONCERNING FO RW ARD LOOKING S TA TEMENTS (CONTINUED ) • 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, • WE INTEND TO CONDUCT OUR BUSINESS ACTIVITIES IN A MANNER THAT WILL AFFORD US REASONABLE ACCESS TO CAPITAL FOR INVESTMENT AND FINANCING ACTIVITIES. HOWEVER, WE MAY NOT SUCCEED IN THIS REGARD AND WE MAY NOT HAVE REASONABLE ACCESS TO CAPITAL, • CONTINUED AVAILABILITY OF BORROWINGS UNDER OUR REVOLVING CREDIT FACILITY AND ILPT'S REVOLVING CREDIT FACILITY 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 REVOLVING CREDIT FACILITY AND ILPT'S REVOLVING CREDIT FACILITY 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 REVOLVING CREDIT FACILITY AND ILPT'S REVOLVING CREDIT FACILITY, 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, RESPECTIVELY, TO INCREASE. 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 7958 South Chester Street, Centennial, CO Square Feet: 167,917 United Launch Alliance Corporate Headquarters
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 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 directly or indirectly through its subsidiaries, including its majority owned subsidiary, Industrial Logistics Properties Trust, or ILPT, properties that are primarily leased to single tenants. As of March 31, 2018, our consolidated portfolio included 366 buildings, leasable land parcels and easements with approximately 45.5 million rentable square feet located in 36 states. SIR owned 100 of these buildings and leasable land parcels with approximately 17.0 million rentable square feet, which are primarily office buildings, and ILPT owned 266 of these 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 the ILPT 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 March 31, 2018, 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 1,700 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 29 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 Consolidated Data (as of March 31, 2018): (dollars and sq. ft. in 000s) Total buildings (1) 366 Total sq. ft. 45,496 Percent leased 95.8% Q1 2018 total revenues $ 120,629 Q1 2018 net income attributed to SIR $ 33,200 Q1 2018 Normalized FFO attributed to SIR (2) $ 56,045
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 8 INVES TOR INFORM ATIO N INVESTOR INFORMATION Board of Trustees Donna D. Fraiche William A. Lamkin Jeffrey P. Somers Independent Trustee Independent Trustee Independent Trustee David M. Blackman Adam D. 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, March 31, 2018 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 10 445 Jan Davis Drive, Huntsville, AL Square Feet: 57,420 Digium, Inc. Corporate Headquarters
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 11 KE Y CONSOLID ATED FINANCIA L D AT A KEY CONSOLIDATED FINANCIAL DATA (dollars in thousands, except per share data) As of and For the Three Months Ended 3/31/2018 12/31/2017 (1) 9/30/2017 6/30/2017 3/31/2017 Selected Balance Sheet Data: Total gross assets (2) $ 5,003,168 $ 5,617,279 $ 4,972,896 $ 4,949,024 $ 4,876,465 Total assets $ 4,669,009 $ 5,303,030 $ 4,677,395 $ 4,673,590 $ 4,614,065 Total liabilities $ 2,240,565 $ 3,311,211 $ 2,655,096 $ 2,642,336 $ 2,562,862 Total shareholders' equity $ 2,428,444 $ 1,991,819 $ 2,022,299 $ 2,031,254 $ 2,051,203 Selected Income Statement Data: Total revenues $ 120,629 $ 117,925 $ 118,014 $ 115,870 $ 116,294 Net income $ 37,679 $ 2,075 $ 31,442 $ 26,661 $ 6,728 Net income attributed to SIR $ 33,200 $ 2,075 $ 31,442 $ 26,661 $ 6,728 NOI (3) $ 93,559 $ 92,434 $ 91,876 $ 91,511 $ 92,584 Adjusted EBITDA (4) $ 85,982 $ 59,818 $ 85,695 $ 85,534 $ 73,797 FFO attributed to SIR (5) $ 66,395 $ 36,977 $ 66,155 $ 61,207 $ 40,468 Normalized FFO attributed to SIR (5) $ 56,045 $ 34,764 $ 60,677 $ 62,127 $ 52,361 Per Common Share Data: Net income attributed to SIR - basic and diluted $ 0.37 $ 0.02 $ 0.35 $ 0.30 $ 0.08 FFO attributed to SIR - basic (5) $ 0.74 $ 0.41 $ 0.74 $ 0.69 $ 0.45 FFO attributed to SIR - diluted (5) $ 0.74 $ 0.41 $ 0.74 $ 0.68 $ 0.45 Normalized FFO attributed to SIR - basic and diluted (5) $ 0.63 $ 0.39 $ 0.68 $ 0.70 $ 0.59 Dividends: Annualized dividends paid per share $ 2.04 $ 2.04 $ 2.04 $ 2.04 $ 2.04 Annualized dividend yield (at end of period) (6) 10.5% 8.1% 8.7% 8.5% 7.9% Normalized FFO payout ratio (5) 81.0% 130.8% 75.0% 72.9% 86.4% (1) Net income and FFO attributed to SIR for the three months ended December 31, 2017 include business management incentive fee expense of $22,281. Adjusted EBITDA and Normalized FFO attributed to SIR for the three months ended December 31, 2017 include business management incentive fee expense of $25,569. (2) Total gross assets is total assets plus accumulated depreciation. (3) See page 24 for the calculation of NOI and page 25 for a reconciliation of net income determined in accordance with GAAP to that amount. (4) See page 28 for the calculation of Adjusted EBITDA and a reconciliation of net income determined in accordance with GAAP to that amount. (5) See page 29 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, March 31, 2018 12 CONDENSED CONSOLID ATED BALANCE SHEET S CONDENSED CONSOLIDATED BALANCE SHEETS March 31, December 31, 2018 2017 ASSETS Real estate properties: Land $ 1,041,767 $ 1,041,767 Buildings and improvements 3,180,492 3,178,098 4,222,259 4,219,865 Accumulated depreciation (334,159) (314,249) 3,888,100 3,905,616 Properties held for sale 5,829 5,829 Acquired real estate leases, net 461,577 477,577 Cash and cash equivalents 30,884 658,719 Restricted cash 1,612 178 Rents receivable, including straight line rents of $125,567 and $122,010, respectively, net of allowance for doubtful accounts of $1,797 and $1,396, respectively 131,445 127,672 Deferred leasing costs, net 14,459 14,295 Other assets, net 135,103 113,144 Total assets $ 4,669,009 $ 5,303,030 LIABILITIES AND SHAREHOLDERS' EQUITY Unsecured revolving credit facility $ 107,000 $ — ILPT revolving credit facility 302,000 750,000 Unsecured term loan, net — 348,870 Senior unsecured notes, net 1,428,571 1,777,425 Mortgage notes payable, net 210,749 210,785 Accounts payable and other liabilities 86,092 101,352 Assumed real estate lease obligations, net 66,577 68,783 Rents collected in advance 21,099 15,644 Security deposits 8,412 8,346 Due to related persons 10,065 30,006 Total liabilities 2,240,565 3,311,211 Commitments and contingencies Shareholders' equity: Shareholders' equity attributable to SIR: Common shares of beneficial interest, $.01 par value: 125,000,000 shares authorized; 89,486,754 and 89,487,371 shares issued and outstanding, respectively 895 895 Additional paid in capital 2,311,923 2,180,896 Cumulative net income 592,826 508,213 Cumulative other comprehensive income 1,440 52,665 Cumulative common distributions (796,489) (750,850) Total shareholders' equity attributable to SIR 2,110,595 1,991,819 Noncontrolling interest in consolidated subsidiary 317,849 — Total shareholders' equity 2,428,444 1,991,819 Total liabilities and shareholders' equity $ 4,669,009 $ 5,303,030 (dollars in thousands, except per share data)
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 13 CONDENSED CONSOLID ATED S TA TEMENTS OF INCOM E CONDENSED CONSOLIDATED STATEMENTS OF INCOME For the Three Months Ended March 31, 2018 2017 Revenues: Rental income $ 99,755 $ 97,344 Tenant reimbursements and other income 20,874 18,950 Total revenues 120,629 116,294 Expenses: Real estate taxes 11,788 10,843 Other operating expenses 15,282 12,867 Depreciation and amortization 34,946 33,740 General and administrative (1) 13,941 14,901 Write-off of straight line rents receivable, net (2) — 12,517 Loss on asset impairment (2) — 4,047 Total expenses 75,957 88,915 Operating income 44,672 27,379 Dividend income 397 397 Unrealized gain on equity securities (3) 16,900 — Interest income 510 13 Interest expense (including net amortization of debt issuance costs, premiums and discounts of $1,764 and $1,404, respectively) (23,492) (21,087) Loss on early extinguishment of debt (1,192) — Income before income tax expense and equity in earnings of an investee 37,795 6,702 Income tax expense (160) (102) Equity in earnings of an investee 44 128 Net income 37,679 6,728 Net income allocated to noncontrolling interest (4,479) — Net income attributed to SIR $ 33,200 $ 6,728 Weighted average common shares outstanding - basic 89,382 89,331 Weighted average common shares outstanding - diluted 89,390 89,348 Net income attributed to SIR per common share - basic and diluted $ 0.37 $ 0.08 Additional Data: General and administrative expenses (1) / total revenues 11.6% 12.8% General and administrative expenses (1) / total assets (at end of period) 0.3% 0.3% Non-cash straight line rent adjustments included in rental income (4) $ 3,556 $ 5,391 Lease value amortization included in rental income (4) $ 514 $ 434 Non-cash amortization included in other operating expenses (5) $ 213 $ 213 Non-cash amortization included in general and administrative expenses (5) $ 345 $ 345 (dollars and shares in thousands, except per share data) See accompanying notes on the following page.
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 14 CONDENSED CONSOLID ATED S TA TEMENTS OF INCOME (CONTINUED ) CONDENSED CONSOLIDATED STATEMENTS OF INCOME (CONTINUED) (dollars in thousands, except per share data) (1) General and administrative expenses include $5,358 and $7,846 of estimated business management incentive fee expense for the three months ended March 31, 2018 and 2017, respectively. (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 which 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) Unrealized gain on equity securities represents the adjustment required to adjust the carrying value of SIR's investment in RMR Inc. common shares to its fair value as of March 31, 2018 in accordance with new GAAP standards effective January 1, 2018. (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. 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, March 31, 2018 15 CONDENSED CONSOLID ATED S TA TEMENTS OF CASH FLOW S CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 37,679 $ 6,728 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 20,256 19,862 Net amortization of debt issuance costs, premiums and discounts 1,764 1,404 Amortization of acquired real estate leases and assumed real estate lease obligations 13,794 13,109 Amortization of deferred leasing costs 443 410 Write-off of straight line rents and provision for losses on rents receivable 400 12,454 Straight line rental income (3,556) (5,391) Loss on asset impairment — 4,047 Loss on early extinguishment of debt 1,192 — Other non-cash expenses, net (502) (311) Unrealized gain on equity securities (16,900) — Equity in earnings of an investee (44) (128) Change in assets and liabilities: Rents receivable (617) 1,599 Deferred leasing costs (448) (1,346) Other assets (1,642) (5,510) Accounts payable and other liabilities (15,833) (17,519) Rents collected in advance 5,455 (137) Security deposits 66 193 Due to related persons (19,941) 7,743 Net cash provided by operating activities 21,566 37,207 CASH FLOWS FROM INVESTING ACTIVITIES: Real estate acquisitions and deposits — (5,977) Real estate improvements (1,438) (4,559) Net cash used in investing activities (1,438) (10,536) (dollars in thousands)
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 16 CONDENSED CONSOLID ATED S TA TEMENTS OF CASH FLOWS (CONTINUED ) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) For the Three Months Ended March 31, 2018 2017 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common shares in subsidiary, net 444,309 — Repayments of mortgage notes payable — (89) Borrowings under revolving credit facilities 134,000 80,000 Repayments of revolving credit facilities (475,000) (65,000) Payment of debt issuance costs (4,183) — Repayment of term loan (350,000) — Repayment of senior unsecured notes (350,000) — Distributions to common shareholders (45,639) (45,608) Repurchase of common shares (16) — Net cash used in financing activities (646,529) (30,697) Decrease in cash, cash equivalents and restricted cash (626,401) (4,026) Cash, cash equivalents and restricted cash at beginning of period 658,897 22,171 Cash, cash equivalents and restricted cash at end of period $ 32,496 $ 18,145 (dollars in thousands) SUPPLEMENTAL DISCLOSURES: Interest paid $ 33,670 $ 33,233 Income taxes paid $ — $ (30) SUPPLEMENTAL DISCLOSURE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH: The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows: As of March 31, 2018 2017 Cash and cash equivalents $ 30,884 $ 18,101 Restricted cash 1,612 44 Total cash and cash equivalents and restricted cash shown in the statement of cash flows $ 32,496 $ 18,145
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 17 FINANCIA L INFORM ATION B Y OWNE R FINANCIAL INFORMATION BY OWNER (dollars and sq. ft. in thousands) For the Three Months Ended March 31, 2018 (1) SIR (excluding ILPT) ILPT Consolidated REVENUES: Rental income $ 64,946 $ 34,809 $ 99,755 Tenant reimbursements and other income 15,078 5,796 20,874 Total revenues 80,024 40,605 120,629 EXPENSES: Real estate taxes 7,203 4,585 11,788 Other operating expenses 11,737 3,545 15,282 Depreciation and amortization 28,073 6,873 34,946 General and administrative 11,367 2,574 13,941 Total expenses 58,380 17,577 75,957 Operating income 21,644 23,028 44,672 Dividend income 397 — 397 Unrealized gain on equity securities 16,900 — 16,900 Interest income 497 13 510 Interest expense (19,690) (3,802) (23,492) Loss on early extinguishment of debt (1,192) — (1,192) Income before income tax expense and equity in earnings of an investee 18,556 19,239 37,795 Income tax expense (153) (7) (160) Equity in earnings of an investee 44 — 44 Net income 18,447 19,232 37,679 Net income allocated to noncontrolling interest (4,479) — (4,479) Net income attributed to SIR $ 13,968 $ 19,232 $ 33,200 As of March 31, 2018 (1) SIR (excluding ILPT) ILPT Consolidated Total Assets $ 3,235,774 $ 1,433,235 $ 4,669,009 Unsecured revolving credit facility $ 107,000 $ 302,000 $ 409,000 Senior unsecured notes, net 1,428,571 — 1,428,571 Mortgage notes payable, net 161,380 49,369 210,749 Total Debt $ 1,696,951 $ 351,369 $ 2,048,320 (1) In connection with ILPT's formation in September 2017, SIR contributed to ILPT substantially all of SIR's industrial and logistics properties located in Hawaii, totaling 226 buildings, leasable land parcels and easements, as well as 40 industrial and logistics buildings located in 24 other states (a combined 28,540 rentable square feet), and ILPT issued a $750,000 demand note and 45,000,000 ILPT common shares to SIR. On January 17, 2018, ILPT completed the ILPT IPO and sold 20,000,000 of its common shares for net proceeds (after deducting the underwriting discount and commissions and expenses) of $444,309. ILPT used part of the net proceeds from its IPO towards the repayment of amounts outstanding under its revolving credit facility. ILPT also reimbursed us for approximately $7,271 of costs we incurred in connection with ILPT's formation and the preparation for the ILPT IPO.
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 18 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 March 31, 2018: Unsecured Floating Rate Debt: SIR revolving credit facility (LIBOR + 125 bps) (4) 2.987% 2.987% $ 107,000 3/29/2019 $ 107,000 1.0 ILPT revolving credit facility (LIBOR + 140 bps) (5) 3.230% 3.230% 302,000 12/29/2021 302,000 3.8 Subtotal / weighted average unsecured floating rate debt 3.166% 3.166% 409,000 409,000 3.1 Unsecured Fixed Rate Debt: Senior notes due 2020 3.600% 3.775% 400,000 2/1/2020 400,000 1.8 Senior notes due 2022 4.150% 4.360% 300,000 2/1/2022 300,000 3.8 Senior notes due 2024 4.250% 4.471% 350,000 5/15/2024 350,000 6.1 Senior notes due 2025 4.500% 4.755% 400,000 2/1/2025 400,000 6.8 Subtotal / weighted average unsecured fixed rate debt 4.119% 4.334% 1,450,000 1,450,000 4.6 Secured Fixed Rate Debt: One property (one building) in Philadelphia, PA (6) 3.664% 4.160% 41,000 8/3/2020 39,635 2.3 One property (one building) in Chester, VA (7) 3.990% 3.480% 48,750 11/1/2020 48,750 2.6 One property (three buildings) in Seattle, WA 3.550% 3.790% 71,000 5/1/2023 71,000 5.1 One property (one building) in Chicago, IL 3.700% 3.590% 50,000 6/1/2023 50,000 5.2 Subtotal / weighted average secured fixed rate debt 3.710% 3.743% 210,750 209,385 4.0 Total / weighted average debt 3.889% 4.043% $ 2,069,750 $ 2,068,385 4.3 See accompanying notes on the following page.
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 19 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 March 31, 2018, net of unamortized premiums, discounts and certain issuance costs totaling $21,430, was $2,048,320. (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 125 basis points and a facility fee of 25 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 under our $750,000 revolving credit facility at March 31, 2018. Interest rate is as of March 31, 2018 and excludes the 25 basis points facility fee. The maximum borrowing availability under our revolving credit facility may be increased to up to $1,850,000 in certain circumstances. (5) ILPT has a $750,000 revolving credit facility which has a maturity date of December 29, 2021, interest payable on borrowings of LIBOR plus a premium and a commitment fee of 25 basis points per annum. The interest rate premium for ILPT's revolving credit facility is subject to adjustment based on changes to ILPT's leverage ratio, and the commitment fee is subject to adjustment based on the unused portion of ILPT's revolving credit facility. 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 under ILPT's $750,000 revolving credit facility at March 31, 2018. Interest rate is as of March 31, 2018 and excludes the commitment fee. The maximum borrowing availability under ILPT's revolving credit facility may be increased to up to $1,500,000 in certain circumstances. (6) 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 March 31, 2018. (7) Represents a mortgage note secured by a property owned by ILPT.
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 20 CONSOLID ATED DEBT M ATURIT Y SCHEDUL E CONSOLIDATED DEBT MATURITY SCHEDULE (dollars in thousands) Scheduled Principal Payments as of March 31, 2018 Unsecured Unsecured Secured Floating Fixed Fixed Period/Year Rate Debt Rate Debt Rate Debt Total (3) 4/1/2018 - 12/31/2018 $ — $ — $ 228 $ 228 2019 107,000 (1) — 710 107,710 2020 — 400,000 88,812 488,812 2021 302,000 (2) — — 302,000 2022 — 300,000 — 300,000 2023 — — 121,000 121,000 2024 — 350,000 — 350,000 2025 — 400,000 — 400,000 Total $ 409,000 $ 1,450,000 $ 210,750 $ 2,069,750 Percent 19.8% 70.1% 10.1% 100.0% (1) Represents the amount outstanding under our $750,000 revolving credit facility at March 31, 2018. We have a $750,000 revolving credit facility which has a maturity date of March 29, 2019, interest payable on borrowings of LIBOR plus 125 basis points and a facility fee of 25 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. (2) Represents the amount outstanding under ILPT's $750,000 revolving credit facility at March 31, 2018. ILPT has a $750,000 revolving credit facility which has a maturity date of December 29, 2021, interest payable on borrowings of LIBOR plus a premium and a commitment fee of 25 basis points per annum as of March 31, 2018. The interest rate premium for ILPT's revolving credit facility is subject to adjustment based on changes to ILPT's leverage ratio, and the commitment fee is subject to adjustment based on the unused portion of ILPT's revolving credit facility. 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. (3) Total debt outstanding as of March 31, 2018, net of unamortized premiums, discounts and certain issuance costs totaling $21,430, was $2,048,320.
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 21 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 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Leverage Ratios: Total debt (1) / total gross assets (2) 41.4% 55.4% 49.9% 49.7% 48.9% Total debt (1) / gross book value of real estate assets (3) 42.6% 64.0% 51.0% 51.2% 50.3% Total debt (1) / total market capitalization (4) 54.6% 58.0% 54.2% 53.4% 50.9% Secured debt (1) / total assets 4.5% 4.0% 4.9% 5.2% 5.3% Variable rate debt (1) / total debt (1) 19.8% 35.4% 18.2% 16.9% 29.0% Coverage Ratios: Adjusted EBITDA (5) / interest expense 3.7x 2.4x 3.5x 3.8x 3.5x Total debt (1) / annualized Adjusted EBITDA (5) 6.0x 13.0x 7.2x 7.2x 8.1x Public Debt Covenants: Total debt / adjusted total assets (6) (maximum 60%) 41.3% 55.4% 50.0% 49.9% 49.3% Secured debt / adjusted total assets (6) (maximum 40%) 4.2% 17.1% 4.6% 5.0% 5.1% Consolidated income available for debt service (7) / annual debt service (minimum 1.50x) 4.0x 3.4x 3.8x 3.7x 4.1x Total unencumbered assets (6) / unsecured debt (minimum 150%) 246.5% 178.9% 199.9% 201.0% 203.7% (1) Debt amounts represent the principal balance as of the date reported. (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 28 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, March 31, 2018 22 CONSOLID ATED CAPI TA L EXPENDITURES SUMMA RY CONSOLIDATED CAPITAL EXPENDITURES SUMMARY (dollars in thousands) For the Three Months Ended SIR (excluding ILPT): 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Tenant improvements (1) $ 1,734 $ — $ 376 $ — $ 311 Leasing costs (2) 571 3,160 308 606 973 Building improvements (3) 385 1,330 1,099 945 385 Recurring capital expenditures 2,690 4,490 1,783 1,551 1,669 Development, redevelopment and other activities (4) 72 462 655 492 37 Total capital expenditures $ 2,762 $ 4,952 $ 2,438 $ 2,043 $ 1,706 (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. For the Three Months Ended ILPT: 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Tenant improvements (1) $ 69 $ 384 $ 2 $ 61 $ 17 Leasing costs (2) 5 80 95 24 429 Building improvements (3) 90 228 224 264 309 Recurring capital expenditures 164 692 321 349 755 Development, redevelopment and other activities (4) 378 634 1,928 1,959 684 Total capital expenditures $ 542 $ 1,326 $ 2,249 $ 2,308 $ 1,439 For the Three Months Ended Consolidated: 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Tenant improvements (1) $ 1,803 $ 384 $ 378 $ 61 $ 328 Leasing costs (2) 576 3,240 403 630 1,402 Building improvements (3) 475 1,558 1,323 1,209 694 Recurring capital expenditures 2,854 5,182 2,104 1,900 2,424 Development, redevelopment and other activities (4) 450 1,096 2,583 2,451 721 Total capital expenditures $ 3,304 $ 6,278 $ 4,687 $ 4,351 $ 3,145
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 23 CONSOLID ATED PROPERT Y ACQUISITIONS AND DISPOSITIONS INFORM ATION SINCE 1/1/18 CONSOLIDATED PROPERTY ACQUISITIONS AND DISPOSITIONS INFORMATION SINCE 1/1/18 Acquisitions: Dispositions: We have not disposed of any properties since January 1, 2018. We have not acquired any properties since January 1, 2018.
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 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 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Calculation of NOI and Cash Basis NOI: Rental income $ 99,755 $ 99,265 $ 98,635 $ 97,041 $ 97,344 Tenant reimbursements and other income 20,874 18,660 19,379 18,829 18,950 Real estate taxes (11,788) (10,963) (11,489) (10,836) (10,843) Other operating expenses (15,282) (14,528) (14,649) (13,523) (12,867) NOI $ 93,559 $ 92,434 $ 91,876 $ 91,511 $ 92,584 SIR NOI (excluding ILPT) $ 61,084 $ 60,403 $ 60,116 $ 59,946 $ 60,215 ILPT NOI 32,475 32,031 31,760 31,565 32,369 NOI $ 93,559 $ 92,434 $ 91,876 $ 91,511 $ 92,584 Non-cash straight line rent adjustments included in rental income (2) (3,556) (4,608) (5,581) (5,389) (5,391) Lease value amortization included in rental income (2) (514) (546) (547) (527) (434) Lease termination fees included in rental income (2) — (212) — (101) — Non-cash amortization included in other operating expenses (3) (213) (213) (213) (213) (213) Cash Basis NOI $ 89,276 $ 86,855 $ 85,535 $ 85,281 $ 86,546 SIR Cash Basis NOI (excluding ILPT) $ 58,097 $ 56,573 $ 55,486 $ 55,425 $ 55,881 ILPT Cash Basis NOI 31,179 30,282 30,049 29,856 30,665 Cash Basis NOI $ 89,276 $ 86,855 $ 85,535 $ 85,281 $ 86,546 See accompanying notes on the following page.
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 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 30 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. For the Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Reconciliation of Net Income to NOI and Cash Basis NOI: Net income $ 37,679 $ 2,075 $ 31,442 $ 26,661 $ 6,728 Equity in earnings of an investee (44) (75) (31) (374) (128) Income tax expense 160 102 177 85 102 Income before income tax expense and equity in earnings of an investee 37,795 2,102 31,588 26,372 6,702 Loss on early extinguishment of debt 1,192 — — — — Interest expense 23,492 24,592 24,383 22,808 21,087 Interest income (510) (51) (19) (7) (13) Unrealized gain on equity securities (16,900) — — — — Dividend income (397) (397) (397) (396) (397) Operating income 44,672 26,246 55,555 48,777 27,379 Loss on impairment of real estate assets — — — 229 — Loss on asset impairment (4) — — — — 4,047 Write-off of straight line rents receivable, net (4) — — — — 12,517 General and administrative 13,941 30,211 1,608 8,188 14,901 Acquisition and transaction related costs — 1,075 — — — Depreciation and amortization 34,946 34,902 34,713 34,317 33,740 NOI 93,559 92,434 91,876 91,511 92,584 Non-cash straight line rent adjustments included in rental income (2) (3,556) (4,608) (5,581) (5,389) (5,391) Lease value amortization included in rental income (2) (514) (546) (547) (527) (434) Lease termination fees included in rental income (2) — (212) — (101) — Non-cash amortization included in other operating expenses (3) (213) (213) (213) (213) (213) Cash Basis NOI $ 89,276 $ 86,855 $ 85,535 $ 85,281 $ 86,546
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 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 3/31/2018 3/31/2017 Reconciliation of NOI to Same Property NOI (2): Rental income $ 99,755 $ 97,344 Tenant reimbursements and other income 20,874 18,950 Real estate taxes (11,788) (10,843) Other operating expenses (15,282) (12,867) NOI 93,559 92,584 Less: NOI of properties not included in same property results (2,454) — Same property NOI $ 91,105 $ 92,584 SIR same property NOI (excluding ILPT) $ 58,630 $ 60,215 ILPT same property NOI 32,475 32,369 Same property NOI $ 91,105 $ 92,584 Calculation of Same Property Cash Basis NOI (2): Same property NOI $ 91,105 $ 92,584 Less: Non-cash straight line rent adjustments included in rental income (3) (3,375) (5,391) Lease value amortization included in rental income (3) (514) (434) Non-cash amortization included in other operating expenses (4) (213) (213) Same property Cash Basis NOI $ 87,003 $ 86,546 SIR same property Cash Basis NOI (excluding ILPT) $ 55,824 $ 55,881 ILPT same property Cash Basis NOI 31,179 30,665 Same property Cash Basis NOI $ 87,003 $ 86,546 (1) See Definitions of Certain Non-GAAP Financial Measures on page 30 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 March 31, 2018, same property NOI and Cash Basis NOI are based on properties we owned as of March 31, 2018, and which we owned continuously since January 1, 2017. (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. 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, March 31, 2018 27 CALCUL ATION AND RECONCILI ATION OF NOI, CASH BASIS NOI, SAME PROPERT Y NOI AN D SAME PROPERT Y CASH BASIS NOI B Y SEGMEN T CALCULATION AND RECONCILIATION OF NOI, CASH BASIS NOI, SAME PROPERTY NOI AND SAME PROPERTY CASH BASIS NOI BY SEGMENT (1) (dollars in thousands) (1) See Definitions of Certain Non-GAAP Financial Measures on page 30 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) For the three months ended March 31, 2018, same property NOI and same property Cash Basis NOI are based on properties SIR owned as of March 31, 2018, and which it owned continuously since January 1, 2017. Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 SIR (excluding ILPT) ILPT Total SIR (excluding ILPT) ILPT Total Calculation of NOI and Cash Basis NOI: Rental income $ 64,946 $ 34,809 $ 99,755 $ 63,474 $ 33,870 $ 97,344 Tenant reimbursements and other income 15,078 5,796 20,874 13,380 5,570 18,950 Real estate taxes (7,203) (4,585) (11,788) (6,504) (4,339) (10,843) Other operating expenses (11,737) (3,545) (15,282) (10,135) (2,732) (12,867) NOI 61,084 32,475 93,559 60,215 32,369 92,584 Less: Non-cash straight line rent adjustments included in rental income (2) (2,362) (1,194) (3,556) (3,921) (1,470) (5,391) Lease value amortization included in rental income (2) (412) (102) (514) (338) (96) (434) Non-cash amortization included in other operating expenses (3) (213) — (213) (75) (138) (213) Cash Basis NOI $ 58,097 $ 31,179 $ 89,276 $ 55,881 $ 30,665 $ 86,546 Reconciliation of NOI to Same Property NOI (4): NOI $ 61,084 $ 32,475 $ 93,559 $ 60,215 $ 32,369 $ 92,584 Less: NOI of properties not included in same property results (2,454) — (2,454) — — — Same property NOI $ 58,630 $ 32,475 $ 91,105 $ 60,215 $ 32,369 $ 92,584 Reconciliation of Same Property NOI to Same Property Cash Basis NOI (4): Same property NOI $ 58,630 $ 32,475 $ 91,105 $ 60,215 $ 32,369 $ 92,584 Less: Non-cash straight line rent adjustments included in rental income (2) (2,181) (1,194) (3,375) (3,921) (1,470) (5,391) Lease value amortization included in rental income (2) (412) (102) (514) (338) (96) (434) Non-cash amortization included in other operating expenses (3) (213) — (213) (75) (138) (213) Same property Cash Basis NOI $ 55,824 $ 31,179 $ 87,003 $ 55,881 $ 30,665 $ 86,546
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 28 CALCUL ATION OF EBITD A AND ADJUSTED EBITD A CALCULATION OF EBITDA AND ADJUSTED EBITDA (1) (dollars in thousands) For the Three Months Ended 3/31/2018 12/31/2017 (2) 9/30/2017 6/30/2017 3/31/2017 Net income $ 37,679 $ 2,075 $ 31,442 $ 26,661 $ 6,728 Plus: interest expense 23,492 24,592 24,383 22,808 21,087 Plus: income tax expense 160 102 177 85 102 Plus: depreciation and amortization 34,946 34,902 34,713 34,317 33,740 EBITDA 96,277 61,671 90,715 83,871 61,657 Plus: acquisition and transaction related costs — 1,075 — — — Plus: general and administrative expense paid in common shares (3) 55 360 458 514 247 Plus: estimated business management incentive fees (4) 5,358 (3,288) (5,478) 920 7,846 Plus: loss on asset impairment (5) — — — — 4,047 Plus: loss on impairment of real estate assets (6) — — — 229 — Plus: loss on early extinguishment of debt (7) 1,192 — — — — Less: unrealized gain on equity securities (8) (16,900) — — — — Adjusted EBITDA $ 85,982 $ 59,818 $ 85,695 $ 85,534 $ 73,797 (1) See Definitions of Certain Non-GAAP Financial Measures on page 30 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 for the three months ended December 31, 2017 include business management incentive fee expense of $22,281. Adjusted EBITDA for the three months ended December 31, 2017 includes business management incentive fee expense of $25,569. (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 agreements 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 condensed 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 for the three months ended December 31, 2017 includes business management incentive fee expense of $25,569. 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) During the three months ended June 30, 2017, we recorded losses on impairment of real estate assets of $229 in connection with one vacant property located in Maynard, MA. (7) During the three months ended March 31, 2018, we recorded a $1,192 loss on early extinguishment of debt in connection with the repayment of our term loan and 2.85% senior unsecured notes. (8) Represents the unrealized gain to record our equity securities to fair value in accordance with GAAP.
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 29CALCUL 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 3/31/2018 12/31/2017 (2) 9/30/2017 6/30/2017 3/31/2017 Net income attributed to SIR $ 33,200 $ 2,075 $ 31,442 $ 26,661 $ 6,728 Plus: depreciation and amortization 34,946 34,902 34,713 34,317 33,740 Plus: loss on impairment of real estate assets — — — 229 — Plus: net income allocated to noncontrolling interest 4,479 — — — — Less: FFO allocated to noncontrolling interest (6,230) — — — — FFO attributed to SIR 66,395 36,977 66,155 61,207 40,468 Plus: acquisition and transaction related costs — 1,075 — — — Plus: estimated business management incentive fees (3) 5,358 (3,288) (5,478) 920 7,846 Plus: loss on asset impairment (4) — — — — 4,047 Plus: loss on early extinguishment of debt (5) 1,192 — — — — Less: unrealized gain on equity securities (6) (16,900) — — — — Normalized FFO attributed to SIR $ 56,045 $ 34,764 $ 60,677 $ 62,127 $ 52,361 Weighted average common shares outstanding - basic 89,382 89,381 89,355 89,338 89,331 Weighted average common shares outstanding - diluted 89,390 89,392 89,379 89,362 89,348 Net income attributed to SIR per common share - basic and diluted $ 0.37 $ 0.02 $ 0.35 $ 0.30 $ 0.08 FFO attributed to SIR per common share - basic $ 0.74 $ 0.41 $ 0.74 $ 0.69 $ 0.45 FFO attributed to SIR per common share - diluted $ 0.74 $ 0.41 $ 0.74 $ 0.68 $ 0.45 Normalized FFO attributed to SIR per common share - basic and diluted $ 0.63 $ 0.39 $ 0.68 $ 0.70 $ 0.59 (1) See Definitions of Certain Non-GAAP Financial Measures on page 30 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 for the three months ended December 31, 2017 include business management incentive fee expense of $22,281. Normalized FFO attributed to SIR for the three months ended December 31, 2017 includes business management incentive fee expense of $25,569. (3) Incentive fees under our business management agreements 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 condensed 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 for the three months ended December 31, 2017 includes business management incentive fee expense of $25,569. 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. (5) During the three months ended March 31, 2018, we recorded a $1,192 loss on early extinguishment of debt in connection with the repayment of our term loan and 2.85% senior unsecured notes. (6) Represents the unrealized gain to record our equity securities to fair value in accordance with GAAP.
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 30 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 condensed 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 28. 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 condensed 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 29. 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, loss on early extinguishment of debt, unrealized gain on equity securities 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 condensed consolidated statements of income. Other real estate companies and REITs may calculate FFO and Normalized FFO differently than we do.
31 PORTFOLIO INFORMATION 31 2300 & 2400 Yorkmont Road, Charlotte, NC Square Feet: 284,039 Compass Group U.S. Headquarters
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 32 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, 266 of which are owned by ILPT. (2) See page 24 for the calculation of NOI and Cash Basis NOI and page 25 for a reconciliation of net income determined in accordance with GAAP to those amounts. As of and For the Three Months Ended March 31, 2018 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 43,580 28,534 15,046 Percent leased 95.8% 99.9% 88.7% Total revenues $ 120,629 $ 40,605 $ 80,024 Percent of total 100.0% 33.7% 66.3% NOI (2) $ 93,559 $ 32,475 $ 61,084 Percent of total 100.0% 34.7% 65.3% Cash Basis NOI (2) $ 89,276 $ 31,179 $ 58,097 Percent of total 100.0% 34.9% 65.1%
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 33 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) 3/31/2018 3/31/2017 Leasable Buildings: SIR (excluding ILPT) 96 96 ILPT (2) 266 266 Total 362 362 Square Feet (3): SIR (excluding ILPT) 16,308 16,308 ILPT (2) 28,540 28,505 Total 44,848 44,813 Percent Leased (4): SIR (excluding ILPT) 88.3% 89.4% ILPT 99.9% 99.6% Total 95.7% 95.9% Total Revenues: SIR (excluding ILPT) $ 76,586 $ 76,854 ILPT 40,605 39,440 Total $ 117,191 $ 116,294 (1) Consists of properties that we owned continuously since January 1, 2017. (2) 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. (3) Subject to modest adjustments when space is re-measured or re-configured for new tenants and when land leases are converted to building leases. (4) 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, March 31, 2018 34 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) 3/31/2018 3/31/2017 NOI (2): SIR (excluding ILPT) $ 58,630 $ 60,215 ILPT 32,475 32,369 Total $ 91,105 $ 92,584 Cash Basis NOI (2): SIR (excluding ILPT) $ 55,824 $ 55,881 ILPT 31,179 30,665 Total $ 87,003 $ 86,546 NOI % Change: SIR (excluding ILPT) -2.6% ILPT 0.3% Total -1.6% Cash Basis NOI % Change: SIR (excluding ILPT) -0.1% ILPT 1.7% Total 0.5% (1) Consists of properties that we owned continuously since January 1, 2017. (2) See page 24 for the calculation of NOI and Cash Basis NOI and page 25 for 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, March 31, 2018 35 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 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Leasable buildings (1) 366 366 366 364 362 Total sq. ft. (2) 45,496 45,496 45,496 45,186 44,813 Square feet leased 43,580 43,767 43,753 43,340 42,967 Percentage leased 95.8% 96.2% 96.2% 95.9% 95.9% Leasing Activity (Sq. Ft.): New leases 1 173 114 41 234 (3) Renewals 350 395 152 161 250 Total 351 568 266 202 484 % Change in GAAP Rent (4): New leases 19.6% 13.6% -11.0% -10.7% 23.3% Renewals 34.1% 24.6% 4.9% 3.9% 20.0% Weighted average 33.9% 21.1% 0.5% -2.6% 20.9% Leasing Costs and Concession Commitments (5): New leases $ 33 $ 7,667 $ 171 $ 2,494 $ 826 Renewals 370 6,237 299 14 309 Total $ 403 $ 13,904 $ 470 $ 2,508 $ 1,135 Leasing Costs and Concession Commitments per Sq. Ft. (5): New leases $ 33.00 $ 44.32 $ 1.50 $ 60.83 $ 3.53 Renewals $ 1.06 $ 15.79 $ 1.97 $ 0.09 $ 1.24 Total $ 1.15 $ 24.48 $ 1.77 $ 12.42 $ 2.35 Weighted Average Lease Term by Sq. Ft. (years): New leases 7.0 8.4 10.1 12.4 7.1 Renewals 26.2 5.2 7.9 35.9 12.8 Total 26.1 6.2 8.9 31.1 10.0 Leasing Costs and Concession Commitments per Sq. Ft. per Year (5) (6): New leases $ 4.71 $ 5.28 $ 0.15 $ 4.91 $ 0.50 Renewals $ 0.04 $ 3.04 $ 0.25 $ 0.00 $ 0.10 Total $ 0.04 $ 3.95 $ 0.20 $ 0.40 $ 0.23 (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, March 31, 2018 36 SIR (EXCLUDING ILPT) LEASING SUMMA RY SIR (EXCLUDING ILPT) 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 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Leasable buildings 100 100 100 98 96 Total sq. ft. (1) 16,956 16,956 16,956 16,681 16,308 Square feet leased 15,046 15,234 15,234 14,960 14,587 Percentage leased 88.7% 89.8% 89.8% 89.7% 89.4% Leasing Activity (Sq. Ft.): New leases 0 113 0 40 0 Renewals 55 287 17 0 100 Total 55 400 17 40 100 % Change in GAAP Rent (2): New leases 0.0% 12.9% 0.0% -11.4% 0.0% Renewals 10.7% 25.7% 3.5% 0.0% 6.3% Weighted average 10.7% 21.9% 3.5% -11.4% 6.3% Leasing Costs and Concession Commitments (3): New leases $ 0 $ 7,519 $ 0 $ 2,479 $ 0 Renewals 335 6,229 283 0 255 Total $ 335 $ 13,748 $ 283 $ 2,479 $ 255 Leasing Costs and Concession Commitments per Sq. Ft. (3): New leases $ 0.00 $ 66.54 $ 0.00 $ 61.98 $ 0.00 Renewals $ 6.09 $ 21.70 $ 16.65 $ 0.00 $ 2.55 Total $ 6.09 $ 34.37 $ 16.65 $ 61.98 $ 2.55 Weighted Average Lease Term by Sq. Ft. (years): New leases 0.0 11.0 0.0 12.6 0.0 Renewals 4.0 4.9 5.0 0.0 6.9 Total 4.0 6.6 5.0 12.6 6.9 Leasing Costs and Concession Commitments per Sq. Ft. per Year (3) (4): New leases $ 0.00 $ 6.05 $ 0.00 $ 4.92 $ 0.00 Renewals $ 1.52 $ 4.43 $ 3.33 $ 0.00 $ 0.37 Total $ 1.52 $ 5.21 $ 3.33 $ 4.92 $ 0.37 (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) Percent difference in prior rents charged for same space. Rents include estimated recurring expense reimbursements and exclude lease value amortization. (3) Includes commitments made for leasing expenditures and concessions, such as tenant improvements, leasing commissions, tenant reimbursements and free rent. (4) 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, March 31, 2018 37 ILPT LEASING SUMMA RY ILPT 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 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Leasable buildings (1) 266 266 266 266 266 Total sq. ft. (2) 28,540 28,540 28,540 28,505 28,505 Square feet leased 28,534 28,533 28,519 28,380 28,380 Percentage leased 99.9% 99.9% 99.9% 99.6% 99.6% Leasing Activity (Sq. Ft.): New leases 1 60 114 1 234 (3) Renewals 295 108 135 161 150 Total 296 168 249 162 384 % Change in GAAP Rent (4): New leases 19.6% 17.8% -11.0% 23.2% 23.3% Renewals 46.3% 8.9% 5.7% 3.9% 42.5% Weighted average 45.9% 13.3% -0.5% 4.2% 32.6% Leasing Costs and Concession Commitments (5): New leases $ 33 $ 148 $ 171 $ 15 $ 826 Renewals 35 8 16 14 54 Total $ 68 $ 156 $ 187 $ 29 $ 880 Leasing Costs and Concession Commitments per Sq. Ft. (5): New leases $ 33.00 $ 2.47 $ 1.50 $ 15.00 $ 3.53 Renewals $ 0.12 $ 0.07 $ 0.12 $ 0.09 $ 0.36 Total $ 0.23 $ 0.93 $ 0.75 $ 0.18 $ 2.29 Weighted Average Lease Term by Sq. Ft. (years): New leases 7.0 3.6 10.1 3.1 7.1 Renewals 30.4 6.0 8.3 35.9 16.8 Total 30.3 5.1 9.1 35.7 10.9 Leasing Costs and Concession Commitments per Sq. Ft. per Year (5) (6): New leases $ 4.71 $ 0.69 $ 0.15 $ 4.84 $ 0.50 Renewals $ 0.00 $ 0.01 $ 0.01 $ 0.00 $ 0.02 Total $ 0.01 $ 0.18 $ 0.08 $ 0.01 $ 0.21 (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. (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, March 31, 2018 38 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 3/31/2018 Owner 3/31/2018 New Renewals Total SIR (excluding ILPT) 16,956 — 55 55 ILPT 28,540 1 295 296 Total 45,496 1 350 351 Sq. Ft. Leased As of 12/31/2017 New and Acquisitions / As of 3/31/2018 Owner 12/31/2017 % Leased (2) Expired Renewals (Sales) 3/31/2018 % Leased SIR (excluding ILPT) 15,234 89.8% (243) 55 — 15,046 88.7% ILPT 28,533 99.9% (295) 296 — 28,534 99.9% Total 43,767 96.2% (538) 351 — 43,580 95.8% (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, March 31, 2018 39 CONSOLID ATED TENANT DIVERSIT Y AND CREDIT CHARACTERISTIC S CONSOLIDATED TENANT DIVERSITY AND CREDIT CHARACTERISTICS As of March 31, 2018 % of Annualized Rental Revenues (1) Tenant Industry SIR (excluding ILPT) ILPT Total Technology & Communications 35.4% 2.9% 24.7% Retail & Food 15.7% 32.9% 21.4% Manufacturing & Transportation 8.9% 18.1% 11.9% Legal & Consulting 15.2% 0.8% 10.4% Real Estate & Financial 9.3% 9.7% 9.4% Energy Services 11.7% 4.5% 9.3% Industrial 0.2% 26.8% 9.0% Other 3.6% 4.3% 3.9% 100.0% 100.0% 100.0% % of Annualized Rental Revenues (1) Tenant Credit Characteristics SIR (excluding ILPT) ILPT Total Leased Hawaii lands —% 54.8% 18.1% (2) Investment grade rated 42.1% 18.0% 34.2% (3) Unrated or non-investment grade 57.9% 27.2% 47.7% 100.0% 100.0% 100.0% % of Total Annualized Rental Revenues (1) % of Total Annualized Rental Revenues (1) (1) We define annualized rental revenues as the annualized contractual rents, as of March 31, 2018, 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% 21.4% 11.9% 10.4% 9.4% 9.3% 9.0% 3.9% Leased Hawaii lands (2) Investment grade rated (3) Unrated or non- investment grade 18.1% 34.2% 47.7%
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 40 TENANTS REPRESENTING 1% OR MORE OF TO TA L CONSOLID ATED ANNUALIZED REN TA L REVENUE S TENANTS REPRESENTING 1% OR MORE OF TOTAL CONSOLIDATED ANNUALIZED RENTAL REVENUES (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% 3.9% 2. Tellabs, Inc. Office 820 1.9% 3.5% 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% 2.9% 8. WestRock Company Office 311 0.7% 2.6% 9. Orbital ATK, Inc. Office 337 0.8% 2.2% 10. Tyson Foods, Inc. Office 248 0.6% 2.1% 11. Technicolor SA Industrial 1,371 3.1% 2.1% 12. FedEx Corporation Office; Industrial 830 1.9% 1.8% 13. Micro Focus Software, Inc. Office 406 0.9% 1.7% 14. ARRIS International plc Office 228 0.5% 1.6% 15. PNC Bank, National Association Office 441 1.0% 1.4% 16. ServiceNow, Inc. Office 149 0.3% 1.3% 17. Allstate Insurance Company Office 458 1.1% 1.3% 18. Church & Dwight Co., Inc. Office 250 0.6% 1.3% 19. Restoration Hardware, Inc Industrial 1,195 2.7% 1.2% 20. Compass Group USA, Inc. Office 267 0.6% 1.2% 21. Tailored Brands, Inc. Office 206 0.5% 1.2% 22. Automatic Data Processing, Inc. Office 289 0.7% 1.2% 23. Primerica Life Insurance Company Office 344 0.8% 1.1% 24. American Tire Distributors, Inc. Industrial 722 1.7% 1.1% 25. United Launch Alliance, LLC Office 168 0.4% 1.1% 26. Red Hat, Inc. Office 175 0.4% 1.0% Total 14,827 34.1% 51.2% As of March 31, 2018 (1) Rented square feet is pursuant to existing leases as of March 31, 2018 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 March 31, 2018, 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, March 31, 2018 41 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 March 31, 2018 2021 and Total 2018 2019 2020 Thereafter SIR (excluding ILPT): Total sq. ft. 16,956 Leased sq. ft. (1) 15,046 447 206 190 14,203 Percent 3.0% 1.4% 1.3% 94.3% Annualized rental revenues (2) $ 316,332 $ 5,243 $ 4,281 $ 5,424 $ 301,384 Percent 1.7% 1.4% 1.7% 95.2% ILPT: Total sq. ft. 28,540 Leased sq. ft. (1) 28,534 314 1,534 848 25,838 Percent 1.1% 5.4% 3.0% 90.5% Annualized rental revenues (2) $ 156,508 $ 1,177 $ 4,410 $ 4,292 $ 146,629 Percent 0.8% 2.8% 2.7% 93.7% Consolidated: Total sq. ft. 45,496 Leased sq. ft. (1) 43,580 761 1,740 1,038 40,041 Percent 1.7% 4.0% 2.4% 91.9% Annualized rental revenues (2) $ 472,840 $ 6,420 $ 8,691 $ 9,716 $ 448,013 Percent 1.4% 1.8% 2.1% 94.7% (1) Leased square feet is pursuant to existing leases as of March 31, 2018 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 March 31, 2018, 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, March 31, 2018 42 CONSOLID ATED PORTFOLIO LEASE EXPIR ATION SCHEDUL E CONSOLIDATED PORTFOLIO LEASE EXPIRATION SCHEDULE (dollars and sq. ft. in thousands)As of March 31, 2018 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 Period / Year Tenants Expiring (1) Expiring (1) Expiring (1) Expiring (2) Expiring (2) Expiring (2) 4/1/2018 - 12/31/2018 20 761 1.7% 1.7% $ 6,420 1.4% 1.4% 2019 20 1,740 4.0% 5.7% 8,691 1.8% 3.2% 2020 21 1,038 2.4% 8.1% 9,716 2.1% 5.3% 2021 26 1,667 3.8% 11.9% 17,090 3.6% 8.9% 2022 73 3,948 9.1% 21.0% 50,519 10.7% 19.6% 2023 28 3,155 7.2% 28.2% 40,914 8.7% 28.3% 2024 23 7,001 16.1% 44.3% 71,074 15.0% 43.3% 2025 15 1,765 4.1% 48.4% 26,013 5.5% 48.8% 2026 8 1,701 3.9% 52.3% 26,130 5.5% 54.3% 2027 20 6,150 14.1% 66.4% 51,255 10.8% 65.1% Thereafter 93 14,654 33.6% 100.0% 165,018 34.9% 100.0% Total 347 43,580 100.0% $ 472,840 100.0% Weighted average remaining lease term (in years) 9.6 9.2 (1) Rented square feet is pursuant to existing leases as of March 31, 2018, 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 March 31, 2018, 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, March 31, 2018 43 SIR (EXCLUDING ILPT) PORTFOLIO LEASE EXPIR ATION SCHEDUL E SIR (EXCLUDING ILPT) PORTFOLIO LEASE EXPIRATION SCHEDULE (dollars and sq. ft. in thousands)As of March 31, 2018 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 Period / Year Tenants Expiring (1) Expiring (1) Expiring (1) Expiring (2) Expiring (2) Expiring (2) 4/1/2018 - 12/31/2018 4 447 3.0% 3.0% $ 5,243 1.7% 1.7% 2019 4 206 1.4% 4.3% 4,281 1.4% 3.1% 2020 2 190 1.3% 5.6% 5,424 1.7% 4.8% 2021 6 443 2.9% 8.5% 9,951 3.1% 7.9% 2022 10 1,186 7.9% 16.4% 29,696 9.4% 17.3% 2023 11 1,617 10.7% 27.2% 29,249 9.2% 26.5% 2024 11 2,251 15.0% 42.1% 55,376 17.5% 44.0% 2025 7 1,146 7.6% 49.8% 22,898 7.2% 51.2% 2026 5 1,064 7.1% 56.8% 22,658 7.2% 58.4% 2027 8 1,263 8.4% 65.2% 27,415 8.7% 67.1% Thereafter 12 5,233 34.7% 100.0% 104,141 32.9% 100.0% Total 80 15,046 100.0% $ 316,332 100.0% Weighted average remaining lease term (in years) 8.4 8.2 (1) Rented square feet is pursuant to existing leases as of March 31, 2018, 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 March 31, 2018, 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, March 31, 2018 44 ILPT PORTFOLIO LEASE EXPIR ATION SCHEDUL E ILPT PORTFOLIO LEASE EXPIRATION SCHEDULE (dollars and sq. ft. in thousands)As of March 31, 2018 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 Period / Year Tenants Expiring (1) Expiring (1) Expiring (1) Expiring (2) Expiring (2) Expiring (2) 4/1/2018 - 12/31/2018 16 314 1.1% 1.1% $ 1,177 0.8% 0.8% 2019 16 1,534 5.4% 6.5% 4,410 2.8% 3.6% 2020 19 848 3.0% 9.5% 4,292 2.7% 6.3% 2021 20 1,224 4.3% 13.8% 7,139 4.6% 10.9% 2022 63 2,762 9.7% 23.5% 20,823 13.3% 24.2% 2023 18 1,538 5.4% 28.9% 11,665 7.5% 31.7% 2024 12 4,750 16.6% 45.5% 15,698 10.0% 41.7% 2025 8 619 2.2% 47.7% 3,115 2.0% 43.7% 2026 3 637 2.2% 49.9% 3,472 2.2% 45.9% 2027 12 4,887 17.1% 67.0% 23,840 15.2% 61.1% Thereafter 81 9,421 33.0% 100.0% 60,877 38.9% 100.0% Total 268 28,534 100.0% $ 156,508 100.0% Weighted average remaining lease term (in years) 10.3 11.2 (1) Rented square feet is pursuant to existing leases as of March 31, 2018, 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 March 31, 2018, 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, March 31, 2018 45 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 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 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 March 31, 2018 Number Annualized of Resets Sq. Ft. Rental Revenues (3) 4/1/2018 - 12/31/2018 1 21 $ 237 2019 20 2,498 10,903 2020 4 359 2,500 2021 and Thereafter 40 2,742 19,723 Total 65 5,620 $ 33,363 (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 March 31, 2018, 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.
46 EXHIBIT 46 2555 Grand Boulevard, Kansas City, MO Square Feet: 595,607 Shook, Hardy & Bacon LLP Headquarters
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 47 CONSOLID ATED PROPERT Y DE TAI L CONSOLIDATED PROPERTY DETAIL (dollars and square feet in thousands) EXHIBIT AAs of March 31, 2018 (1) We define annualized rental revenues as the annualized contractual rents, as of March 31, 2018, 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 Revenues (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation 40 Inverness Center Parkway Birmingham AL 1 SIR Owned Office 149 100.0% $ 1,618 $ 12,266 $ 10,301 12/9/2010 1984 42 Inverness Center Parkway Birmingham AL 1 SIR Owned Office 149 100.0% 1,615 12,319 10,318 12/9/2010 1985 44 Inverness Center Parkway Birmingham AL 1 SIR Owned Office 150 100.0% 2,625 12,660 10,691 12/9/2010 1985 46 Inverness Center Parkway Birmingham AL — SIR Owned Land — —% — 2,000 2,000 12/9/2010 — 445 Jan Davis Drive Huntsville AL 1 SIR Owned Office 57 100.0% 1,005 10,280 9,921 7/22/2016 2007 4905 Moores Mill Road Huntsville AL 1 SIR Owned Industrial 1,370 100.0% 9,790 73,001 63,597 8/31/2012 2007 4501 Industrial Drive Fort Smith AR 1 ILPT Owned Industrial 64 100.0% 465 4,385 4,109 1/29/2015 2013 16001 North 28th Avenue Phoenix AZ 1 SIR Owned Office 105 100.0% 1,901 13,717 12,905 4/16/2015 2007 2149 West Dunlap Avenue Phoenix AZ 1 SIR Owned Office 122 100.0% 2,486 20,127 18,978 1/29/2015 1983 1920 and 1930 W University Drive Tempe AZ 2 SIR Owned Office 100 100.0% 2,015 13,461 8,339 6/30/1999 1988 2544 and 2548 Campbell Place Carlsbad CA 2 SIR Owned Office 94 100.0% 2,604 21,314 18,847 9/21/2012 2007 2235 Iron Point Road Folsom CA 1 SIR Owned Office 95 100.0% 3,504 28,954 24,332 12/17/2010 2009 47131 Bayside Parkway Fremont CA 1 SIR Owned Office 101 100.0% 2,199 10,775 9,612 3/19/2009 1990 100 Redwood Shores Parkway Redwood City CA 1 SIR Owned Office 63 100.0% 3,125 35,531 33,692 1/29/2015 2014 3875 Atherton Road Rocklin CA 1 SIR Owned Office 19 100.0% 405 4,180 3,865 1/29/2015 1991 145 Rio Robles Drive San Jose CA 1 SIR Owned Office 57 100.0% 1,932 13,500 12,604 12/23/2013 2010 2090 Fortune Drive San Jose CA 1 SIR Owned Office 72 100.0% 891 7,698 7,540 1/29/2015 2014 2115 O'Nel Drive San Jose CA 1 SIR Owned Office 99 100.0% 3,201 33,200 31,211 1/29/2015 2013 3939 North First Street San Jose CA 1 SIR Owned Office 64 100.0% 2,019 14,494 13,633 12/23/2013 2013 51 and 77 Rio Robles Drive San Jose CA 2 SIR Owned Office 129 100.0% 2,624 31,478 29,363 12/23/2013 2011 6448-6450 Via Del Oro San Jose CA 1 SIR Owned Office 76 100.0% 1,762 14,737 13,798 1/29/2015 1983 2450 and 2500 Walsh Avenue Santa Clara CA 2 SIR Owned Office 132 100.0% 4,607 44,918 42,018 1/29/2015 2014 3250 and 3260 Jay Street Santa Clara CA 2 SIR Owned Office 149 100.0% 6,140 63,958 59,837 1/29/2015 2013 350 West Java Drive Sunnyvale CA 1 SIR Owned Office 96 100.0% 2,878 24,012 22,325 11/15/2012 2012 7958 South Chester Street Centennial CO 1 SIR Owned Office 168 100.0% 4,992 31,049 29,187 1/29/2015 2000 350 Spectrum Loop Colorado Springs CO 1 SIR Owned Office 156 100.0% 2,714 23,265 21,669 1/29/2015 2000 955 Aeroplaza Drive Colorado Springs CO 1 ILPT Owned Industrial 125 100.0% 900 8,212 7,625 1/29/2015 2012 13400 East 39th Avenue and 3800 Wheeling Street Denver CO 2 ILPT Owned Industrial 394 100.0% 1,358 16,101 15,054 1/29/2015 1996 333 Inverness Drive South Englewood CO 1 SIR Owned Office 140 100.0% 2,825 15,446 13,679 6/15/2012 1998 150 Greenhorn Drive Pueblo CO 1 ILPT Owned Industrial 54 100.0% 543 4,377 4,046 1/29/2015 2013 2 Tower Drive Wallingford CT 1 ILPT Owned Industrial 62 100.0% 404 3,643 3,015 10/24/2006 1978 1 Targeting Center Windsor CT 1 SIR Owned Office 97 100.0% 1,119 9,076 8,052 7/20/2012 1999 235 Great Pond Drive Windsor CT 1 ILPT Owned Industrial 171 100.0% 1,383 11,869 10,528 7/20/2012 2004 10350 NW 112th Avenue Miami FL 1 SIR Owned Office 79 100.0% 3,042 23,852 22,266 1/29/2015 2002
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 48 CONSOLID ATED PROPERT Y DE TAI L (CONTINUED ) CONSOLIDATED PROPERTY DETAIL (CONTINUED) (dollars and square feet in thousands) EXHIBIT AAs of March 31, 2018 (1) We define annualized rental revenues as the annualized contractual rents, as of March 31, 2018, 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 Revenues (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation 2100 NW 82nd Avenue Miami FL 1 ILPT Owned Industrial 37 100.0% 264 1,895 1,182 3/19/1998 2013 One Primerica Parkway Duluth GA 1 SIR Owned Office 344 100.0% 5,249 57,332 53,340 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 18,559 17,354 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% 783 5,444 5,444 12/5/2003 — 1030 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 122 100.0% 991 5,655 5,655 12/5/2003 — 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 1,965 12/5/2003 — 1052 Ahua Street Honolulu HI 1 ILPT Owned Land 30 100.0% 197 1,943 1,868 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% 247 1,342 1,296 12/5/2003 1966 1062 Kikowaena Place Honolulu HI 1 ILPT Owned Land 31 100.0% 238 1,647 1,434 12/5/2003 — 1122 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 106 100.0% 785 5,781 5,781 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 Place 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% 446 2,608 2,520 12/5/2003 1970 120 Sand Island Access Road Honolulu HI 1 ILPT Owned Industrial 71 100.0% 1,288 13,735 9,652 11/23/2004 2004 120B Mokauea Street Honolulu HI 1 ILPT Owned Industrial 35 100.0% 542 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 9,236 12/5/2003 — 140 Puuhale Road Honolulu HI 1 ILPT Owned Land 22 100.0% 200 1,100 1,100 12/5/2003 — 142 Mokauea Street Honolulu HI 1 ILPT Owned Industrial 26 100.0% 400 3,637 3,308 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% 1,064 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% 620 4,419 3,989 12/5/2003 1959 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, March 31, 2018 49 CONSOLID ATED PROPERT Y DE TAI L (CONTINUED ) CONSOLIDATED PROPERTY DETAIL (CONTINUED) (dollars and square feet in thousands) EXHIBIT AAs of March 31, 2018 (1) We define annualized rental revenues as the annualized contractual rents, as of March 31, 2018, 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 Revenues (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation 197 Sand Island Access Road Honolulu HI 1 ILPT Owned Land 31 100.0% 297 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% 345 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 1,679 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 2,983 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% 423 2,267 2,234 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 54 100.0% 1,277 9,530 7,614 12/5/2003 1953 215 Puuhale Road Honolulu HI 1 ILPT Owned Land 42 100.0% 379 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% 584 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% 161 752 752 12/5/2003 — 231B Sand Island Access Road Honolulu HI 1 ILPT Owned Land 39 100.0% 360 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 1,159 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% 144 724 724 12/5/2003 — 2804 Kilihau Street Honolulu HI 1 ILPT Owned Land 34 100.0% 253 1,777 1,776 12/5/2003 — 2806 Kaihikapu Street Honolulu HI 1 ILPT Owned Land 35 100.0% 274 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, March 31, 2018 50 CONSOLID ATED PROPERT Y DE TAI L (CONTINUED ) CONSOLIDATED PROPERTY DETAIL (CONTINUED) (dollars and square feet in thousands) EXHIBIT AAs of March 31, 2018 (1) We define annualized rental revenues as the annualized contractual rents, as of March 31, 2018, 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 Revenues (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation 2810 Pukoloa Street Honolulu HI 1 ILPT Owned Land 412 100.0% 2,644 27,703 27,703 12/5/2003 — 2812 Awaawaloa Street Honolulu HI 1 ILPT Owned Land 35 100.0% 271 1,804 1,802 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 1,823 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 2,123 2,115 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 1,722 1,720 12/5/2003 — 2928 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 1,857 1,649 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 2,794 12/5/2003 — 2847 Awaawaloa Street Honolulu HI 1 ILPT Owned Land 35 100.0% 351 885 777 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% 65 459 397 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, March 31, 2018 51 CONSOLID ATED PROPERT Y DE TAI L (CONTINUED ) CONSOLIDATED PROPERTY DETAIL (CONTINUED) (dollars and square feet in thousands) EXHIBIT AAs of March 31, 2018 (1) We define annualized rental revenues as the annualized contractual rents, as of March 31, 2018, 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 Revenues (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 1,842 1,839 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 1,735 1,725 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% 314 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% 210 624 619 12/5/2003 — 619 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 55 100.0% 523 1,415 1,414 12/5/2003 — 645 Ahua Street Honolulu HI 1 ILPT Owned Land 35 100.0% 260 882 882 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 1,787 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 1,859 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% 218 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, March 31, 2018 52 CONSOLID ATED PROPERT Y DE TAI L (CONTINUED ) CONSOLIDATED PROPERTY DETAIL (CONTINUED) (dollars and square feet in thousands) EXHIBIT AAs of March 31, 2018 (1) We define annualized rental revenues as the annualized contractual rents, as of March 31, 2018, 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 Revenues (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation 673 Mapunapuna Street 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 1,514 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 2,830 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% 263 1,769 1,767 12/5/2003 — 761 Ahua Street Honolulu HI 1 ILPT Owned Land 73 100.0% 540 3,759 3,758 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% 499 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 5,216 12/5/2003 — 822 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 35 100.0% 316 1,810 1,799 12/5/2003 — 830 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 35 100.0% 268 1,826 1,807 12/5/2003 — 842 Mapunapuna Street Honolulu HI 1 ILPT Owned Land 35 100.0% 309 1,809 1,798 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 — 841 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 6,161 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, March 31, 2018 53 CONSOLID ATED PROPERT Y DE TAI L (CONTINUED ) CONSOLIDATED PROPERTY DETAIL (CONTINUED) (dollars and square feet in thousands) EXHIBIT AAs of March 31, 2018 (1) We define annualized rental revenues as the annualized contractual rents, as of March 31, 2018, 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 Revenues (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation 960 Ahua Street Honolulu HI 1 ILPT Owned Land 14 100.0% 92 614 614 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 Owned Land 417 —% — 3,548 3,546 6/15/2005 — 91-027 Kaomi Loop Kapolei HI 1 ILPT Owned Land 214 100.0% 282 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 — 91-210 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 Owned Land 418 —% — 5,829 5,829 6/15/2005 — 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% 52 265 265 6/15/2005 — 91-174 Olai Kapolei HI 1 ILPT Owned Land 58 100.0% 146 1,009 995 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% 364 2,048 2,009 6/15/2005 1964 91-209 Kuhela Kapolei HI 1 SIR Owned Land 109 —% — 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 1,683 1,669 6/15/2005 — 91-220 Kalaeloa Kapolei HI 1 ILPT Owned Industrial 23 100.0% 317 1,871 1,368 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% 1,334 10,599 8,167 6/15/2005 1981 91-241 Kalaeloa Kapolei HI 1 ILPT Owned Industrial 45 100.0% 651 5,245 3,776 6/15/2005 1990 91-250 Komohana Kapolei HI 1 ILPT Owned Land 107 100.0% 300 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 1,248 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% 218 1,381 1,381 6/15/2005 — 91-329 Kauhi Kapolei HI 1 ILPT Owned Industrial 48 100.0% 728 4,873 3,648 6/15/2005 2013
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 54 CONSOLID ATED PROPERT Y DE TAI L (CONTINUED ) CONSOLIDATED PROPERTY DETAIL (CONTINUED) (dollars and square feet in thousands) EXHIBIT AAs of March 31, 2018 (1) We define annualized rental revenues as the annualized contractual rents, as of March 31, 2018, 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) Land parcels include easements. (5) 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 2018 totaled $941. 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 Revenues (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 2,236 100.0% 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% 52 430 430 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 (4) — —% — 1,250 1,250 6/15/2005 — Other Easements & Lots Kapolei HI 1 ILPT Owned Land (4) — —% — 1,604 1,302 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 (4) — —% — 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 451 100.0% 1,682 19,193 17,848 1/29/2015 2012 951 Trails Road Eldridge IA 1 ILPT Owned Industrial 173 100.0% 1,027 8,695 6,529 4/2/2007 2001 8305 NW 62nd Avenue Johnston IA 1 SIR Owned Office 199 100.0% 3,240 34,008 31,514 1/29/2015 2011 2300 N 33rd Avenue Newton IA 1 ILPT Owned Industrial 318 100.0% 1,458 14,140 10,936 9/29/2008 2008 7121 South Fifth Avenue Pocatello ID 1 ILPT Owned Industrial 33 100.0% 370 4,746 4,409 1/29/2015 2007 400 South Jefferson Street Chicago IL 1 SIR Owned Office 248 100.0% 9,824 90,479 84,677 1/29/2015 2012 1230 West 171st Street Harvey IL 1 ILPT Owned Industrial 40 100.0% 442 2,473 2,340 1/29/2015 2004 475 Bond Street Lincolnshire IL 1 SIR Owned Industrial 223 100.0% 1,638 20,957 19,686 1/29/2015 2000 1415 West Diehl Road Naperville IL 1 SIR Owned Office 820 100.0% 16,766 188,475 171,003 4/1/2014 2001 5156 American Road Rockford IL 1 ILPT Owned Industrial 38 100.0% 173 1,929 1,808 1/29/2015 1996 440 North Fairway Drive Vernon Hills IL 1 SIR Owned Office 100 100.0% 1,687 13,977 12,866 10/15/2013 2009 7601 Genesys Way Indianapolis IN 1 SIR Owned Office 120 100.0% 1,913 12,253 12,073 7/19/2017 2003 7635 Genesys Way Indianapolis IN 1 SIR Owned Office 155 100.0% 2,451 16,238 15,998 7/19/2017 2008 400 SW 8th Avenue Topeka KS 1 SIR Owned Office 144 100.0% 2,634 17,674 15,370 7/30/2012 2006 1101 Pacific Avenue Erlanger KY 1 SIR Owned Office 86 100.0% 1,217 12,300 8,057 6/30/2003 1999 1061 Pacific Avenue Erlanger KY — SIR Owned Land — —% 72 732 732 6/30/2003 — 17200 Manchac Park Lane Baton Rouge LA 1 ILPT Owned Industrial 125 100.0% 889 10,560 9,858 1/29/2015 2014 209 South Bud Street Lafayette LA 1 ILPT Owned Industrial 60 100.0% 511 5,258 4,898 1/29/2015 2010 300 Billerica Road Chelmsford MA 1 SIR Owned Office 111 100.0% 1,553 8,756 7,831 9/27/2012 2006 330 Billerica Road Chelmsford MA 1 SIR Owned Office 98 —% — 9,919 8,506 1/18/2011 1996 111 Powdermill Road Maynard MA 1 SIR Owned Office 287 —% — 17,279 16,997 3/30/2007 1990 314 Littleton Road Westford MA 1 SIR Owned Office 175 100.0% 4,810 33,944 31,534 1/29/2015 2013 7001 Columbia Gateway Drive Columbia MD 1 SIR Owned Office 120 100.0% 3,741 28,292 25,064 12/21/2012 2008 4000 Principio Parkway North East MD 1 ILPT Owned Industrial 1,196 100.0% 5,908 76,346 70,680 1/29/2015 2012 3550 Green Court Ann Arbor MI 1 SIR Owned Office 82 100.0% 1,625 13,019 11,594 12/21/2012 1998 3800 Midlink Drive Kalamazoo MI 1 ILPT Owned Industrial 158 100.0% 2,184 43,229 40,015 1/29/2015 2014 2401 Cram Avenue SE Bemidji MN 1 ILPT Owned Industrial 22 100.0% 183 2,237 2,068 1/29/2015 2013
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 55 CONSOLID ATED PROPERT Y DE TAI L (CONTINUED ) CONSOLIDATED PROPERTY DETAIL (CONTINUED) (dollars and square feet in thousands) EXHIBIT AAs of March 31, 2018 (1) We define annualized rental revenues as the annualized contractual rents, as of March 31, 2018, 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 Revenues (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation 110 Stanbury Industrial Drive Brookfield MO 1 ILPT Owned Industrial 16 100.0% 190 2,059 1,912 1/29/2015 2012 2555 Grand Boulevard Kansas City MO 1 SIR Owned Office 596 100.0% 18,313 79,087 74,131 7/31/2015 2003 628 Patton Avenue Asheville NC 1 ILPT Owned Industrial 33 100.0% 203 2,014 1,894 1/29/2015 1994 2300 Yorkmont Road Charlotte NC 1 SIR Owned Office 151 100.0% 3,338 27,066 25,146 1/29/2015 1995 2400 Yorkmont Road Charlotte NC 1 SIR Owned Office 133 100.0% 2,910 22,915 21,207 1/29/2015 1995 3900 NE 6th Street Minot ND 1 ILPT Owned Industrial 24 100.0% 349 3,923 3,668 1/29/2015 2013 1415 West Commerce Way Lincoln NE 1 ILPT Owned Industrial 222 100.0% 1,094 10,718 10,043 1/29/2015 2000 18010 and 18020 Burt Street Omaha NE 2 SIR Owned Office 203 100.0% 3,991 49,842 46,102 1/29/2015 2012 309 Dulty's Lane Burlington NJ 1 ILPT Owned Industrial 634 100.0% 3,387 53,000 48,930 1/29/2015 2001 500 Charles Ewing Boulevard Ewing NJ 1 SIR Owned Office 250 100.0% 5,944 74,374 68,906 1/29/2015 2012 725 Darlington Avenue Mahwah NJ 1 ILPT Owned Industrial 167 100.0% 2,250 18,637 17,668 4/9/2014 2010 299 Jefferson Road Parsippany NJ 1 SIR Owned Office 151 100.0% 4,037 31,064 28,997 1/29/2015 2011 One Jefferson Road Parsippany NJ 1 SIR Owned Office 100 100.0% 4,194 19,157 18,255 11/13/2015 2009 2375 East Newlands Road Fernley NV 1 ILPT Owned Industrial 338 100.0% 1,473 18,700 17,304 1/29/2015 2007 55 Commerce Avenue Albany NY 1 ILPT Owned Industrial 125 100.0% 1,114 11,284 10,469 1/29/2015 2013 8687 Carling Road Liverpool NY 1 SIR Owned Office 38 100.0% 752 5,564 4,020 1/6/2006 2007 1212 Pittsford - Victor Road Pittsford NY 1 SIR Owned Office 55 100.0% 1,024 5,531 3,989 11/30/2004 2003 500 Canal View Boulevard Rochester NY 1 SIR Owned Office 95 —% 315 14,203 10,369 1/6/2006 1997 32150 Just Imagine Drive Avon OH 1 ILPT Owned Industrial 645 100.0% 3,479 25,480 20,339 5/29/2009 2000 1415 Industrial Drive Chillicothe OH 1 ILPT Owned Industrial 44 100.0% 362 4,465 4,206 1/29/2015 2012 2231 Schrock Road Columbus OH 1 SIR Owned Office 42 100.0% 707 5,633 5,259 1/29/2015 1999 5300 Centerpoint Parkway Groveport OH 1 ILPT Owned Industrial 581 100.0% 2,875 32,563 30,199 1/29/2015 2014 200 Orange Point Drive Lewis Center OH 1 ILPT Owned Industrial 125 100.0% 1,045 9,913 9,231 1/29/2015 2013 301 Commerce Drive South Point OH 1 ILPT Owned Industrial 75 100.0% 487 5,130 4,771 1/29/2015 2013 2820 State Highway 31 McAlester OK 1 ILPT Owned Industrial 59 100.0% 787 7,270 7,034 1/29/2015 2017 501 Ridge Avenue Hanover PA 1 SIR Owned Industrial 502 —% — 27,030 21,728 9/24/2008 1965 8800 Tinicum Boulevard Philadelphia PA 1 SIR Owned Office 441 100.0% 6,741 71,319 65,997 1/29/2015 2000 9680 Old Bailes Road Fort Mill SC 1 SIR Owned Office 60 100.0% 770 8,857 8,219 1/29/2015 2007 996 Paragon Way Rock Hill SC 1 ILPT Owned Industrial 945 100.0% 3,054 38,520 35,676 1/29/2015 2014 510 John Dodd Road Spartanburg SC 1 ILPT Owned Industrial 1,016 100.0% 4,640 61,298 56,707 1/29/2015 2012 4836 Hickory Hill Road Memphis TN 1 ILPT Owned Industrial 646 100.0% 1,370 12,702 11,799 12/23/2014 2007 2020 Joe B. Jackson Parkway Murfreesboro TN 1 ILPT Owned Industrial 1,016 100.0% 4,998 62,759 58,385 1/29/2015 2012 16001 North Dallas Parkway Addison TX 2 SIR Owned Office 554 100.0% 14,012 106,343 93,965 1/16/2013 1996 2115-2116 East Randol Mill Road Arlington TX 1 SIR Owned Office 183 100.0% 1,043 13,242 11,997 1/29/2015 1989 Research Park-Cisco Building 3 Austin TX 1 SIR Owned Industrial 55 100.0% 1,048 5,859 3,522 6/16/1999 1999 Research Park-Cisco Building 4 Austin TX 1 SIR Owned Industrial 94 100.0% 1,921 9,780 5,897 6/16/1999 1999 1001 Noble Energy Way Houston TX 1 SIR Owned Office 497 100.0% 14,595 122,210 112,832 1/29/2015 2013
Select Income REIT Supplemental Operating and Financial Data, March 31, 2018 56 CONSOLID ATED PROPERT Y DE TAI L (CONTINUED ) CONSOLIDATED PROPERTY DETAIL (CONTINUED) (dollars and square feet in thousands) EXHIBIT AAs of March 31, 2018 (1) We define annualized rental revenues as the annualized contractual rents, as of March 31, 2018, 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 Revenues (1) Carrying Value (2) Carrying Value (2) Acquired (3) Renovation 10451 Clay Road Houston TX 1 SIR Owned Office 97 100.0% 2,173 27,012 25,285 1/29/2015 2013 202 North Castlegory Road Houston TX 1 SIR Owned Office 84 100.0% 2,865 13,482 13,193 5/12/2017 2016 6380 Rogerdale Road Houston TX 1 SIR Owned Office 206 100.0% 5,638 46,931 44,296 1/29/2015 2006 4221 W. John Carpenter Freeway Irving TX 1 SIR Owned Office 54 100.0% 798 5,678 3,039 3/19/1998 1995 8675,8701-8711 Freeport Pkwy and 8901 Esters Blvd Irving TX 3 SIR Owned Office 458 100.0% 6,038 81,610 76,123 1/29/2015 1990 1511 East Common Street New Braunfels TX 1 SIR Owned Office 63 100.0% 1,137 14,412 13,484 1/29/2015 2005 2900 West Plano Parkway Plano TX 1 SIR Owned Office 191 100.0% 1,420 27,491 25,727 1/29/2015 1998 3400 West Plano Parkway Plano TX 1 SIR Owned Office 235 100.0% 1,485 34,468 31,982 1/29/2015 1994 19100 Ridgewood Parkway San Antonio TX 1 SIR Owned Office 618 100.0% 13,809 192,538 177,659 1/29/2015 2008 3600 Wiseman Boulevard San Antonio TX 1 SIR Owned Office 100 100.0% 3,053 15,484 13,952 3/19/2013 2004 1800 Novell Place Provo UT 1 SIR Owned Office 406 100.0% 7,940 85,640 74,128 6/1/2012 2000 4885-4931 North 300 West Provo UT 2 SIR Owned Office 125 100.0% 3,678 29,338 26,041 2/28/2013 2009 1095 South 4800 West Salt Lake City UT 1 ILPT Owned Industrial 150 100.0% 1,071 8,413 7,866 1/29/2015 2012 1901 Meadowville Technology Parkway Chester VA 1 ILPT Owned Industrial 1,016 100.0% 6,283 71,511 66,166 1/29/2015 2012 Two Commercial Place Norfolk VA 1 SIR Owned Office 289 100.0% 5,561 37,007 36,262 4/28/2017 2016 1910 East Parham Road Richmond VA 1 SIR Owned Office 29 100.0% 441 3,152 2,994 7/20/2015 2014 1920 East Parham Road Richmond VA 1 SIR Owned Office 34 100.0% 565 3,870 3,679 7/20/2015 2014 1950 East Parham Road Richmond VA 1 SIR Owned Office 26 100.0% 543 2,855 2,712 7/20/2015 2012 501 South 5th Street Richmond VA 1 SIR Owned Office 311 100.0% 12,460 123,926 110,878 7/2/2013 2009 9201 Forest Hill Avenue Richmond VA 1 SIR Owned Office 50 100.0% 1,080 6,094 5,913 10/12/2016 1985 1751 Blue Hills Drive Roanoke VA 1 SIR Owned Industrial 399 100.0% 1,874 23,760 22,161 1/29/2015 2003 45101 Warp Drive Sterling VA 1 SIR Owned Office 161 100.0% 4,892 34,298 30,306 11/29/2012 2001 45201 Warp Drive Sterling VA 1 SIR Owned Office 88 100.0% 2,744 18,933 16,774 11/29/2012 2000 45301 Warp Drive Sterling VA 1 SIR Owned Office 88 100.0% 2,738 18,933 16,783 11/29/2012 2000 181 Battaile Drive Winchester VA 1 ILPT Owned Industrial 308 100.0% 1,469 14,341 10,496 4/20/2006 1987 351, 401, 501 Elliott Ave West Seattle WA 3 SIR Owned Office 300 100.0% 13,687 130,304 122,798 1/29/2015 2000 366 — 45,496 — —$ 472,840 —$ 4,228,088 —$ 3,893,929 2004 SIR (excluding ILPT) 100 16,956 $ 316,332 $ 2,883,949 $ 2,628,882 ILPT 266 28,540 156,508 1,344,139 1,265,047 Total 366 45,496 $ 472,840 $ 4,228,088 $ 3,893,929