Government Properties stake in SIR viewed negatively at Wells Fargo
Wells Fargo views Government Properties' (GOV) stake in Select Income REIT (SIR) negatively as it believes the deal was done to give Government's external manager RMR increased control of SIR. Wells does not see a benefit to Government Properties holders by taking the stake and it thinks the deal supports the "long-held concerns" that RMR's incentives aren't aligned with shareholders. It lowered its price target range for Government Properties shares to $20-$22 from $21-$23 and keeps an Underperform rating on the stock.
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