NEWTON, MA—Select Income REIT (SIR) said late Tuesday afternoon that it had registered with the SEC for a planned spin-off of subsidiary Industrial Logistics Properties Trust (ILPT), with a view toward making an initial public offering. The SEC filing did not provide detail on the timing or pricing of the IPO.

Post-IPO, ILPT will own almost all of SIR's industrial portfolio, which currently runs to 229 properties in Hawaii and 46 in other states. The spin-off REIT's portfolio would include 226 Hawaiian assets and 40 mainland industrial properties. SIR will continue to own a majority of the spin-off entity's stock.

Moody's Investors Service on Wednesday said it had downgraded SIR's issuer and senior unsecured ratings on news of the spin-off plan, while also revising the company's outlook to “stable” from “negative.” The downgrade, Moody's said Wednesday, reflected the ratings agency's view that the planned spin-off “will result in a smaller and less diversified by property type company with a weaker credit profile and a more complex structure than the current combined business.”