LONDON, UK / ACCESSWIRE / July 25, 2018 / Active-Investors has a free review on Select Income REIT (NASDAQ: SIR) ("SIR") following the Company's announcement that it will begin trading ex-dividend on July 27, 2018. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on July 26, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on SIR:

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Dividend Declared

On July 19, 2018, SIR announced a regular quarterly cash distribution on its common shares of $0.51 per common share ($2.04 per share per year). This distribution will be paid to SIR's common shareholders of record as of the close of business on July 30, 2018, and distributed on or about August 16, 2018.

SIR's indicated dividend represents a yield of 9.07%, which is more than double compared to the average dividend yield of 3.05% for the Finance sector. The Company has raised its dividend for six years in a row.

Dividend Insights

SIR has a dividend payout ratio of 78.2%, which denotes that the Company distributes approximately $0.78 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.

According to Analyst estimates, SIR is forecasted to report earnings of $1.05 for the upcoming year compared to the Company's annualized dividend of $2.04. One of the primary reasons for the difference between earnings and annualized dividend is that SIR is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.

Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization (D&A) to earnings and subtracting any gains on sales which then provides a better picture of any company's profitability and capacity to pay and to sustain dividends. For instance, net income attributed to SIR for the quarter ended March 31, 2018, was $33.2 million, or $0.37 per diluted share, compared to $6.7 million, or $0.08 per diluted share, for Q1 2017.

On the other hand, the Company's normalized FFO, attributed to SIR for Q1 2018, were $56.0 million, or $0.63 per diluted share, compared to $52.4 million, or $0.59 per diluted share, for Q1 2017. The FFO number indicates that the Company should be able to comfortably cover its dividend payout through earnings.

Upcoming Earnings

On July 05, 2018, SIR announced that it will issue a press release containing its second quarter 2018 financial results before the NASDAQ opens on July 31, 2018. At 10:00 a.m. Eastern Time on the same day, President and CEO, David Blackman, and CFO, John Popeo, will host a conference call to discuss these results.

About Select Income REIT

SIR is a REIT, which owns directly or indirectly through its subsidiaries, including its majority owned subsidiary, properties that are primarily leased to single tenants. As of March 31, 2018, the Company's consolidated portfolio included 366 buildings, leasable land parcels and easements with approximately 45.5 million rentable square feet located in 36 states. SIR have been investment grade rated since 2014, and is included in the Russell 2000 Index and the MSCI US REIT Index

Stock Performance Snapshot

July 24, 2018 - At Tuesday's closing bell, Select Income REIT's stock marginally climbed 0.04%, ending the trading session at $22.62.

Volume traded for the day: 287.09 thousand shares.

Stock performance in the last month - up 1.89%; and previous three-month period - up 19.75%

After yesterday's close, Select Income REIT's market cap was at $1.99 billion.

Price to Earnings (P/E) ratio was at 21.65.

The stock has a dividend yield of 9.02%.

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