Select Income REIT (SIR): Lakewood Capital Management Ups Stake To 5%

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Select Income REIT (NYSE:SIR) is engaged in owning and investing in properties that are primarily net leased to single tenants. It has a market cap of $1.60 billion.

In September last year, Select Income REIT (NYSE:SIR) announced that its board approved a definitive merger agreement to acquire all of the outstanding common stock of Cole Corporate Income Trust (CCIT) for about $3.0 billion. Under the agreement, Select Income REIT (NYSE:SIR) agreed to acquire CCIT’s full property portfolio, which includes 64 office and industrial net lease properties as well as 23 healthcare properties.

The merger is subject to approval of the companies’ shareholders. Both companies plan to hold special meetings on January 27, 2015.

In addition, Select Income REIT (NYSE:SIR) signed another deal in October 2014 to acquire an industrial property in Memphis, Tenn., containing approximately 646,000 square feet for $14.5 million. The acquisition is subject to completion of diligence and other customary closing conditions.

Shares of Select Income REIT (NYSE:SIR) traded slightly up by 0.08% to $26.21 on Thursday. The company’s year-to-date performance stands at 7.54%. For the company’s stock, analysts have the consensus average target price of $25.38, while the consensus average recommendation is ‘Hold’. For the third quarter of 2014, the company reported net income of $23.7 million, or $0.40 per share, compared to $23.6 million, or $0.47 per share, for the same quarter of 2013.

Two Sigma Advisors, led by John Overdeck and David Siegel, holds 329,740 shares of Select Income REIT (NYSE:SIR). Another investor, Millennium Management, managed by Israel Englander, owns 184,771 shares of the company, according to our record.

Lakewood Capital focuses on Technology, Financial and Services stocks. As of the end of the third quarter of 2014, the fund’s equity portfolio value totaled around $1.6 billion. The top three holdings of the fund for the third quarter are represented by Micron Technology Inc. (NASDAQ:MU), Ingram Micro Inc. (NYSE:IM), and Citigroup Inc (NYSE:C).

During the third quarter, Lakewood Capital added more Micron Technology Inc. (NASDAQ:MU) shares, holding around 3.78 million shares of the company, which is engaged in making of advanced semiconductor systems. The hedge fund reported ownership of 4.87 million shares of Ingram Micro Inc. (NYSE:IM), which delivers a full spectrum of global technology and supply chain services to businesses around the world. Citigroup Inc (NYSE:C) was added by Lakewood Capital to its portfolio in the third quarter. The fund disclosed holding around 2.13 million shares of Citigroup Inc (NYSE:C).

Disclosure: none

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