NEWTON, Mass.--(BUSINESS WIRE)--Select Income REIT (Nasdaq: SIR) today announced financial results for the quarter and six months ended June 30, 2016.

Results for the Quarter Ended June 30, 2016:

Net income attributed to SIR was $30.8 million, or $0.34 per diluted share, for the quarter ended June 30, 2016, compared to $29.1 million, or $0.33 per diluted share, for the same quarter last year.

Normalized funds from operations, or Normalized FFO, attributed to SIR for the quarter ended June 30, 2016 were $64.2 million, or $0.72 per diluted share, compared to Normalized FFO attributed to SIR for the quarter ended June 30, 2015 of $62.2 million, or $0.70 per diluted share. The increase in Normalized FFO attributed to SIR per diluted share for the quarter ended June 30, 2016 primarily resulted from SIR’s acquisitions.

Reconciliations of net income attributed to SIR determined in accordance with U.S. generally accepted accounting principles, or GAAP, to funds from operations, or FFO, attributed to SIR and to Normalized FFO attributed to SIR for the quarters ended June 30, 2016 and 2015 appear later in this press release.

Results for the Six Months Ended June 30, 2016:

Net income attributed to SIR was $63.5 million, or $0.71 per diluted share, for the six months ended June 30, 2016, compared to $33.1 million, or $0.39 per diluted share, for the same period last year. Net income attributed to SIR per diluted share for the six months ended June 30, 2015 included costs related to SIR’s acquisition of Cole Corporate Income Trust, Inc., or CCIT, and a loss on early extinguishment of debt aggregating $28.2 million, or $0.33 per diluted share.

Normalized FFO attributed to SIR for the six months ended June 30, 2016 were $130.4 million, or $1.46 per diluted share, compared to Normalized FFO attributed to SIR for the six months ended June 30, 2015 of $118.2 million, or $1.41 per diluted share. The increase in Normalized FFO attributed to SIR per diluted share for the six months ended June 30, 2016 primarily resulted from SIR’s acquisitions, including the acquisition of CCIT in January 2015.

Reconciliations of net income attributed to SIR determined in accordance with GAAP to FFO attributed to SIR and to Normalized FFO attributed to SIR for the six months ended June 30, 2016 and 2015 appear later in this press release.

Leasing, Occupancy and Same Property Results:

SIR entered into lease renewals for approximately 133,000 square feet and new leases for approximately 15,000 square feet during the quarter ended June 30, 2016, which resulted in combined weighted average (by square feet) rental rates that were approximately 15.5% higher than prior rents for the same space. The weighted average (by square feet) lease terms for these leases was 12.3 years. Commitments for tenant improvements, leasing costs and concessions for these leases totaled $91,000, or approximately $0.05 per square foot per weighted average lease year.

As of June 30, 2016, 96.8% of SIR’s total rentable square feet was leased, compared to 97.8% as of March 31, 2016, and 97.7% as of June 30, 2015. Occupancy for properties owned continuously since April 1, 2015 decreased to 96.7% at June 30, 2016 from 97.7% at June 30, 2015. Same property cash basis net operating income, or Cash Basis NOI, increased 0.7% for the quarter ended June 30, 2016 compared to the quarter ended June 30, 2015, largely as a result of contractual rent increases for properties since April 1, 2015.

Reconciliations of net operating income, or NOI, and Cash Basis NOI to net income determined in accordance with GAAP for the quarters and six months ended June 30, 2016 and 2015 appear later in the press release.

Recent Investment Activities:

On July 22, 2016, SIR acquired a single tenant, net leased office property located in Huntsville, AL with approximately 57,000 rentable square feet for a purchase price of $10.2 million, excluding acquisition related costs. This property was acquired and simultaneously leased back to the seller for an initial lease term of 15 years.

Select Income REIT is a real estate investment trust, or REIT, which owns properties that are primarily net leased to single tenants. SIR is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, MA.