Government Properties Income has completed its merger with Select Income REIT.
After the effective time of the merger, the combined company changed its name to “Office Properties Income Trust” and effected a 1-for-4 reverse split of its outstanding common shares such that every four common shares of the combined company will be converted into one common share of the combined company. The company began trading on the Nasdaq on a split adjusted basis under the ticker symbol “OPI” on January 2, 2019.
David Blackman, President and Chief Executive Officer of GOV said that he believes the “successful completion of this merger results in OPI becoming a leading national office REIT with increased scale, enhanced tenant and geographic diversification, a well laddered lease expiration schedule, a broader investment strategy and one of the highest percentages of rent paid by investment grade rated tenants in the public office sector. We look forward to advancing OPI’s investment strategy of owning buildings leased to single tenants and those with high credit quality characteristics like government entities.”
He adds that “Also, as we move forward, based on feedback received from the investment community, management believes, and the Compensation Committee of the Board of Trustees agreed, that the SNL U.S. Office REIT Index is a more appropriate benchmark comparison for OPI in calculating the incentive management fee.”
Government Properties Income Trust is a real estate investment trust, or REIT, which primarily owns properties located throughout the United States that are majority leased to government tenants and office properties in the metropolitan Washington, D.C. market area that are leased to government and private sector tenants.