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Select Income REIT

Nasdaq:SIR
Snowflake Description

Undervalued average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SIR
Nasdaq
$676M
Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

SIR is a real estate investment trust, or REIT, that owns directly or indirectly through its subsidiaries, including its majority owned subsidiary, ILPT, properties that are primarily net leased to single tenants. The last earnings update was 62 days ago. More info.


Add to Portfolio Compare Print
  • Select Income REIT has significant price volatility in the past 3 months.
SIR Share Price and Events
7 Day Returns
-52.8%
NasdaqGS:SIR
-0.5%
US REITs
3%
US Market
1 Year Returns
-70%
NasdaqGS:SIR
-8.8%
US REITs
-8.4%
US Market
SIR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Select Income REIT (SIR) -52.8% -60.9% -64.7% -70% -61.9% -71.9%
US REITs -0.5% -7.8% -7.5% -8.8% -0.3% 19.4%
US Market 3% -9.7% -15.8% -8.4% 20.1% 28.6%
1 Year Return vs Industry and Market
  • SIR underperformed the REITs industry which returned -8.8% over the past year.
  • SIR underperformed the Market in United States of America which returned -8.4% over the past year.
Price Volatility
SIR
Industry
5yr Volatility vs Market

Value

 Is Select Income REIT undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Select Income REIT to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Select Income REIT.

NasdaqGS:SIR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Funds From Operations
Levered Funds From Operations Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SIR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.48
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.476 (1 + (1- 21%) (324.13%))
1.696
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.7
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.696 * 7.05%)
14.9%

Discounted Cash Flow Calculation for NasdaqGS:SIR using 2 Stage Free Cash Flow to Equity using Funds From Operations Model

The calculations below outline how an intrinsic value for Select Income REIT is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

Select Income REIT is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

NasdaqGS:SIR DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Funds From Operations (FFO) (USD, Millions) 216.46 221.61 261.50 305.95 354.90
Source Analyst x2 Analyst x2 Est @ 18%, capped from 22.84% Est @ 17%, capped from 22.84% Est @ 16%, capped from 22.84%
Present Value
Discounted (@ 14.9%)
188.39 167.85 172.37 175.51 177.19
Present value of next 5 years cash flows $881.31
NasdaqGS:SIR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $354.90 × (1 + 2.95%) ÷ (14.9% – 2.95%)
$3,056.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $3,056.52 ÷ (1 + 14.9%)5
$1,526.00
NasdaqGS:SIR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $881.31 + $1,526.00
$2,407.31
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,407.31 / 89.55
$26.88
NasdaqGS:SIR Discount to Share Price
Calculation Result
Value per share (USD) From above. $26.88
Current discount Discount to share price of $7.55
= -1 x ($7.55 - $26.88) / $26.88
71.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Select Income REIT is available for.
Intrinsic value
>50%
Share price is $7.55 vs Future cash flow value of $26.88
Current Discount Checks
For Select Income REIT to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Select Income REIT's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Select Income REIT's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Select Income REIT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Select Income REIT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SIR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $0.86
NasdaqGS:SIR Share Price ** NasdaqGS (2018-12-28) in USD $7.55
United States of America REITs Industry PE Ratio Median Figure of 155 Publicly-Listed REITs Companies 27.17x
United States of America Market PE Ratio Median Figure of 3,020 Publicly-Listed Companies 16.04x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Select Income REIT.

NasdaqGS:SIR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SIR Share Price ÷ EPS (both in USD)

= 7.55 ÷ 0.86

8.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Select Income REIT is good value based on earnings compared to the US REITs industry average.
  • Select Income REIT is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Select Income REIT's expected growth come at a high price?
Raw Data
NasdaqGS:SIR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
-4.8%per year
United States of America REITs Industry PEG Ratio Median Figure of 141 Publicly-Listed REITs Companies 0.93x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.13x

*Line of best fit is calculated by linear regression .

NasdaqGS:SIR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.83x ÷ -4.8%

-1.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Select Income REIT earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Select Income REIT's assets?
Raw Data
NasdaqGS:SIR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $23.02
NasdaqGS:SIR Share Price * NasdaqGS (2018-12-28) in USD $7.55
United States of America REITs Industry PB Ratio Median Figure of 191 Publicly-Listed REITs Companies 1.53x
United States of America Market PB Ratio Median Figure of 5,096 Publicly-Listed Companies 1.61x
NasdaqGS:SIR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SIR Share Price ÷ Book Value per Share (both in USD)

= 7.55 ÷ 23.02

0.33x

* Primary Listing of Select Income REIT.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Select Income REIT is good value based on assets compared to the US REITs industry average.
X
Value checks
We assess Select Income REIT's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Select Income REIT has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Select Income REIT expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-4.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Select Income REIT expected to grow at an attractive rate?
  • Select Income REIT's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 3%.
Growth vs Market Checks
  • Select Income REIT's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Select Income REIT's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SIR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SIR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts -4.8%
NasdaqGS:SIR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 6%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 0.4%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SIR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SIR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 513 79 2
2019-12-31 492 80 3
2018-12-31 448 91 4
NasdaqGS:SIR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 476 201 76
2018-06-30 473 199 78
2018-03-31 472 207 93
2017-12-31 468 223 67
2017-09-30 465 234 89
2017-06-30 462 232 86
2017-03-31 461 231 90
2016-12-31 462 233 116
2016-09-30 462 242 103
2016-06-30 459 236 105
2016-03-31 451 227 104
2015-12-31 428 228 75

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Select Income REIT's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Select Income REIT's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SIR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Select Income REIT Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SIR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.77 0.84 0.70 2.00
2019-12-31 1.10 1.61 0.80 3.00
2018-12-31 1.02 1.04 1.00 2.00
NasdaqGS:SIR Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 0.86
2018-06-30 0.88
2018-03-31 1.04
2017-12-31 0.75
2017-09-30 1.00
2017-06-30 0.96
2017-03-31 1.01
2016-12-31 1.30
2016-09-30 1.15
2016-06-30 1.18
2016-03-31 1.16
2015-12-31 0.86

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Select Income REIT is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Select Income REIT's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Select Income REIT has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Select Income REIT performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Select Income REIT's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Select Income REIT's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Select Income REIT's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Select Income REIT's 1-year earnings growth is negative, it can't be compared to the US REITs industry average.
Earnings and Revenue History
Select Income REIT's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Select Income REIT Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SIR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 476.44 76.46 77.47
2018-06-30 472.58 78.42 63.75
2018-03-31 472.44 93.38 53.86
2017-12-31 468.10 66.91 54.82
2017-09-30 465.01 89.05 31.40
2017-06-30 462.04 86.18 37.34
2017-03-31 461.07 90.27 36.53
2016-12-31 462.01 116.32 28.60
2016-09-30 461.97 102.98 28.27
2016-06-30 458.87 105.16 27.05
2016-03-31 451.18 103.55 26.04
2015-12-31 428.37 74.75 25.86
2015-09-30 369.97 90.76 22.54
2015-06-30 314.72 83.75 20.67
2015-03-31 264.07 84.81 16.50
2014-12-31 222.68 105.90 14.88
2014-09-30 216.22 103.09 14.75
2014-06-30 208.10 102.94 14.12
2014-03-31 197.49 95.52 14.88
2013-12-31 188.32 93.09 12.42
2013-09-30 174.61 86.18 12.05
2013-06-30 157.02 78.31 10.84
2013-03-31 139.06 70.85 9.52
2012-12-31 122.79 65.88 8.20
2012-09-30 113.27 65.95 6.90
2012-06-30 109.19 66.73 5.68
2012-03-31 108.43 69.12 5.48
2011-12-31 108.62 68.94 5.53

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Select Income REIT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Select Income REIT used its assets less efficiently than the US REITs industry average last year based on Return on Assets.
  • Select Income REIT has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Select Income REIT's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Select Income REIT has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Select Income REIT's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Select Income REIT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Select Income REIT's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Select Income REIT's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Select Income REIT's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Select Income REIT Company Filings, last reported 3 months ago.

NasdaqGS:SIR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 2,379.64 2,191.49 26.44
2018-06-30 2,395.63 2,144.71 31.84
2018-03-31 2,428.44 2,114.90 31.09
2017-12-31 1,991.82 3,156.03 658.72
2017-09-30 2,022.30 2,526.10 18.16
2017-06-30 2,031.25 2,509.44 21.68
2017-03-31 2,051.20 2,443.30 18.10
2016-12-31 2,073.96 2,428.94 22.13
2016-09-30 2,091.93 2,442.35 16.70
2016-06-30 2,096.64 2,427.02 10.82
2016-03-31 2,101.08 2,476.03 31.29
2015-12-31 2,096.96 2,450.10 17.88
2015-09-30 2,172.80 2,464.79 25.25
2015-06-30 2,187.75 2,305.60 22.71
2015-03-31 2,167.38 2,304.47 33.92
2014-12-31 1,480.45 472.29 13.50
2014-09-30 1,482.10 460.20 14.71
2014-06-30 1,486.30 470.12 20.80
2014-03-31 1,201.99 740.47 204.32
2013-12-31 1,198.69 563.11 20.03
2013-09-30 1,197.53 476.63 14.54
2013-06-30 911.92 632.24 12.29
2013-03-31 906.23 635.88 16.59
2012-12-31 900.18 493.21 20.37
2012-09-30 713.29 489.89 10.69
2012-06-30 712.46 341.16 9.99
2012-03-31 697.27 247.58 18.36
2011-12-31 904.80 21.01
  • Select Income REIT's level of debt (92.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (39.9% vs 92.1% today).
  • Debt is not well covered by operating cash flow (9.2%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Select Income REIT's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Select Income REIT has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Select Income REIT's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
27.02%
Current annual income from Select Income REIT dividends. Estimated to be 27.36% next year.
If you bought $2,000 of Select Income REIT shares you are expected to receive $540 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Select Income REIT's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.55%).
  • Select Income REIT's dividend is above the markets top 25% of dividend payers in United States of America (3.96%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SIR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 184 Stocks 4.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1985 Stocks 2.8%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SIR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 2.08 3.00
2019-12-31 2.08 4.00
2018-12-31 2.04 4.00
NasdaqGS:SIR Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-10-18 2.040 11.153
2018-07-19 2.040 9.791
2018-04-19 2.040 9.666
2018-01-19 2.040 10.326
2017-10-12 2.040 8.264
2017-07-12 2.040 8.712
2017-04-11 2.040 8.297
2017-01-13 2.040 7.979
2016-10-11 2.040 8.212
2016-07-12 2.040 7.576
2016-04-26 2.000 8.069
2016-01-11 2.000 9.621
2015-10-13 2.000 9.993
2015-04-13 2.000 9.520
2015-01-12 1.920 7.698
2014-10-07 1.920 7.920
2014-07-14 1.920 7.166
2014-04-04 1.920 6.479
2014-01-03 1.840 6.468
2013-10-09 1.840 6.787
2013-07-09 1.760 6.867
2013-04-08 1.760 6.252
2013-01-10 1.680 6.466
2012-10-09 1.680 6.762
2012-07-09 1.600 6.432

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Select Income REIT has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Select Income REIT only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Select Income REIT's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (105.9x coverage).
X
Income/ dividend checks
We assess Select Income REIT's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Select Income REIT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Select Income REIT has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Select Income REIT's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Blackman
COMPENSATION $189,718
AGE 55
TENURE AS CEO 0.5 years
CEO Bio

Mr. David M. Blackman has been Managing Trustee at Select Income REIT since April 2, 2018. He has been Chief Executive Officer at Tremont Mortgage Trust since June 1, 2017 and its Managing Trustee since March 9, 2018. He also serves as its Chief Operating Officer, President and Chief Investment Officer at Tremont Mortgage Trust since August 20, 2018. He has been Executive Vice President at The RMR Group LLC, a subsidiary of The RMR Group Inc. since 2013 and has served as president, chief operating officer and chief financial officer of other publicly traded real estate investment trusts managed by The RMR Group LLC Mr. Blackman has been the President and Chief Executive Officer of Select Income REIT since 2012 and June 2018 respectively. Mr. Blackman has been President of Government Properties Income Trust since January 10, 2011 and has been its CEO since June 2018. He served as Chief Operating Officer of Government Properties Income Trust since January 10, 2011 until June 2018. Mr. Blackman was the Chief Operating Officer of Select Income REIT since 2012. He has been Investment Manager of Hospitality Properties Trust since February 2009. Mr. Blackman has served as President and Chief Executive Officer of Tremont Realty Advisors LLC since January 2018, and he served as an Executive Vice President of Tremont Realty Advisors LLC since it was formed in 2016 through 2017. Mr. Blackman served as Senior Vice President of RMR LLC in 2009. He served as Chief Financial Officer and Treasurer of Government Properties Income Trust from 2009 to January 2011 and also served as its Principal Accounting Officer. Prior to joining The RMR Group in 2009, He was a real estate investment banker at Wachovia Corporation. He was a Banker at Wachovia Bank and its predecessors for 23 years, focused on real estate finance matters. Mr. Blackman served as Managing Director in the real estate section of Wachovia Capital Markets, LLC from 2005 to January 2009. His experience includes asset level real estate lending, real estate loan syndications, REIT corporate banking and real estate investment banking.

CEO Compensation
  • David's compensation has been consistent with company performance over the past year.
  • David's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Select Income REIT management team in years:

3.9
Average Tenure
48
Average Age
  • The tenure for the Select Income REIT management team is about average.
Management Team

David Blackman

TITLE
President
COMPENSATION
$190K
AGE
55
TENURE
0.5 yrs

Adam Portnoy

TITLE
Managing Trustee
COMPENSATION
$72K
AGE
48

Jeffrey Leer

TITLE
CFO & Treasurer
AGE
39
TENURE
0.9 yrs

Christopher Ranjitkar

TITLE
Director of Investor Relations

Jennifer Clark

TITLE
Secretary
AGE
56
TENURE
6.9 yrs

Vern Larkin

TITLE
Director of Internal Audit
AGE
48
TENURE
6.9 yrs

Olivia Snyder

TITLE
Manager of Investor Relations
Board of Directors Tenure

Average tenure and age of the Select Income REIT board of directors in years:

6.8
Average Tenure
59
Average Age
  • The tenure for the Select Income REIT board of directors is about average.
Board of Directors

David Blackman

TITLE
President
COMPENSATION
$190K
AGE
55
TENURE
0.7 yrs

Adam Portnoy

TITLE
Managing Trustee
COMPENSATION
$72K
AGE
48
TENURE
7 yrs

Bill Lamkin

TITLE
Independent Trustee
COMPENSATION
$145K
AGE
59
TENURE
6.8 yrs

Jeffrey Somers

TITLE
Independent Trustee
COMPENSATION
$141K
AGE
75
TENURE
6.8 yrs

Donna Fraiche

TITLE
Independent Trustee
COMPENSATION
$140K
AGE
66
TENURE
6.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Select Income REIT's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Select Income REIT has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

What Are The Drivers Of Select Income REIT's (NASDAQ:SIR) Risks?

Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

What You Need To Know Before Investing In Select Income REIT (NASDAQ:SIR)

Select Income REIT is a US$2.01b. … real estate investment trust (REIT) based in Newton, United States. … View our latest analysis for Select Income REIT

Simply Wall St -

Should You Buy Select Income REIT (NASDAQ:SIR) Now?

Select Income REIT (NASDAQ:SIR), a reits company based in United States,. … Today I will analyse the most recent data on Select Income REIT’s outlook and valuation to see if the opportunity still exists … Check out our latest analysis for Select Income REIT

Simply Wall St -

You May Have Been Looking At Select Income REIT (NASDAQ:SIR) All Wrong

Select Income REIT is a US$1.92B small-cap real estate investment trust (REIT) based in Newton, United States. … The ratio is typically calculated using EBIT, but for a REIT stock, it's better to use FFO divided by net interest. … Next Steps: As a REIT, Select Income REIT offers some unique characteristics which could help diversify your portfolio.

Simply Wall St -

Why Select Income REIT's (NASDAQ:SIR) Investor Composition Impacts Your Returns

In this article, I'm going to take a look at Select Income REIT’s (NASDAQ:SIR) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … The impact of a company's ownership structure affects both its short- and long-term performance. … Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

Simply Wall St -

What You Must Know About Select Income REIT's (NASDAQ:SIR) Return on Equity

Select Income REIT (NASDAQ:SIR) generated a below-average return on equity of 4.03% in the past 12 months, while its industry returned 7.64%. … View our latest analysis for Select Income REIT Breaking down ROE — the mother of all ratios Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Since Select Income REIT’s return does not cover its cost, with a difference of -6.03%, this means its current use of equity is not efficient and not sustainable.

Simply Wall St -

At $18.74, Is Select Income REIT (NASDAQ:SIR) A Buy?

Select Income REIT (NASDAQ:SIR), a reits company based in United States, saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $23.67 and falling to the lows of $18.17. … Let’s take a look at Select Income REIT’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … Select Income REIT’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta.

Simply Wall St -

One Thing To Consider Before Buying Select Income REIT (NASDAQ:SIR)

Check out our latest analysis for Select Income REIT An interpretation of SIR's beta Select Income REIT's beta of 0.81 indicates that the stock value will be less variable compared to the whole stock market. … SIR’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … However, this is the opposite to what SIR’s actual beta value suggests, which is lower stock volatility relative to the market.

Simply Wall St -

Select Income REIT (NASDAQ:SIR): Is It A Good Long Term Opportunity?

The latest earnings announcement Select Income REIT's (NASDAQ:SIR) released in December 2017 revealed that the business experienced a immense headwind with earnings deteriorating by -42.48%. … Below, I've presented key growth figures on how market analysts perceive Select Income REIT's earnings growth trajectory over the next couple of years and whether the future looks brighter. … The advantage of this approach is that we can get a bigger picture of the direction of Select Income REIT's earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile.

Simply Wall St -

Does Select Income REIT's (NASDAQ:SIR) Stock Price Account For Its Growth?

As the legendary value investor Ben Graham once said, “Price is what you pay, value is what you get.” Select Income REIT is trading at price-to-earnings (PE) ratio of 25.44x, which tells us the stock is overvalued based on current earnings compared to the reits industry average of 21.22x , and overvalued compared to the US market average ratio of 18.76x. … But, seeing as Select Income REIT is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … A PE ratio of 25.44x and expected year-on-year earnings growth of 13.67% give Select Income REIT a higher PEG ratio of 1.86x.

Simply Wall St -

Company Info

Map
Description

SIR is a real estate investment trust, or REIT, that owns directly or indirectly through its subsidiaries, including its majority owned subsidiary, ILPT, properties that are primarily net leased to single tenants. As of September 30, 2018, our consolidated portfolio included 368 buildings, leasable land parcels and easements with approximately 45.8 million rentable square feet located in 36 states. SIR owned 99 of these buildings and leasable land parcels with approximately 16.5 million rentable square feet, which are primarily office buildings, and ILPT owned 269 of these buildings, leasable land parcels and easements with approximately 29.2 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. Pursuant to the Merger Agreement, we will, subject to the satisfaction of certain conditions, distribute all 45.0 million of the ILPT common shares that we own to our shareholders prior to the merger. We have been investment grade rated since 2014, and we are included in the Russell 2000® Index and the MSCI US REIT Index.

Details
Name: Select Income REIT
SIR
Exchange: NasdaqGS
Founded:
$676,106,486
89,550,528
Website: http://www.sirreit.com
Address: Select Income REIT
Two Newton Place,
Suite 300,
Newton,
Massachusetts, 02458,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SIR Common Shares Nasdaq Global Select US USD 07. Mar 2012
NasdaqGS SIRV.V EX DISTRBUTION Nasdaq Global Select US USD 24. Dec 2018
Number of employees
Current staff
Staff numbers
0
Select Income REIT employees.
Industry
Office REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/30 00:32
End of day share price update: 2018/12/28 00:00
Last estimates confirmation: 2018/12/17
Last earnings filing: 2018/10/29
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.