- With Select Income REIT (NYSE:SIR) COO David Blackman presenting at NAREIT's REITWeek conference, investors are taking the opportunity to ask about yesterday's deal for SIR (along with other Portnoy-managed REITs) to take a stake in the Portnoys' RMR.
- Webcast
- "Who set the price on RMR," is naturally the first question, and "Did any independent party do a valuation opinion" is naturally the second.
- RMR came to its REITs with a price, says Blackman, and the price was based upon 50% of the termination fees in the existing management contracts. As for question number two, Blackman says all the banks involved had a look, but it doesn't appear as if any outsiders were retained to help out.
- "Why not just internalize management," is another natural question, and Blackman says RMR's scale allows for lower costs.
- Other REITs involved: SNH, HPT, GOV-OLD
- Previously: Portnoys' RMR to go public; managed REITs now own about half (June 8)