Select Income REIT (NYSE:SIR) Q4 2018 Earnings Conference Call - Final Transcript

Feb 28, 2019 • 10:00 am ET


Select Income REIT (NYSE:SIR) Q4 2018 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Office Properties Income Trust Fourth Quarter 2018 Financial Results Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Olivia Snyder, Manager of Investor Relations. Please go ahead.

Olivia Snyder

Thank you, and good morning everyone, thanks for joining us today. With me on the call are OPI's President and Chief Executive Officer, David Blackman; and Chief Financial Officer and Treasurer, Jeff Leer. In just a moment they will provide details about our business and our performance for the fourth quarter of 2018. We will then open the call to your questions. First, I would like to note that the recording and retransmission of today's conference call is prohibited without the prior written consent of the Company.

Also note that today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based on OPI's beliefs and expectations as of today, Thursday, February 28, 2019, and actual results may differ materially from those that we project. The Company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call.

Additional information concerning factors that could cause those differences is contained in our filings with the Securities and Exchange Commission or SEC, which can be accessed from our website or the SEC's website. Investors are cautioned not to place undue reliance upon any forward-looking statements. In addition, we will be discussing non-GAAP numbers during this call, including normalized funds from operations, or normalized FFO and cash-based net operating income, or cash basis NOI.

A reconciliation of these non-GAAP figures to net income and the components to calculate cash available for distribution, or CAD, are available in our supplemental operating and financial data package, which also can be found on our website.

And now, I will turn the call over to David.

David Blackman

Thank you, Olivia, and good morning. Welcome to the first earnings call for Office Properties Income Trust, which is the culmination of the merger between Government Properties Income Trust and Select Income REIT. On today's call, I will provide an overview of OPI and an update on our capital recycling program before turning the call over to Jeff Leer to provide an overview of financial results.

Before I begin, I would like to highlight that due to the merger closing on the last business day of the quarter, fourth quarter results reflect a combined balance sheet, but only GOV's operating results. To help rectify this, we provided pro form consolidated results as if the merger had closed on October 1st, instead of December 31st in our earnings release and supplemental disclosure package.

Our operating strategy for OPI will differ from our operating strategies for GOV and SIR as standalone companies.