Diversified Healthcare Trust (DHC) 10-Q 3 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 02, 2017
Document and Entity Information
Entity Registrant Name	SENIOR HOUSING PROPERTIES TRUST
Entity Central Index Key	1,075,415
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		237,558,963
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Real estate properties:
Land	$ 806,369	$ 803,773
Buildings and improvements	6,993,451	6,926,750
Total real estate properties, gross	7,799,820	7,730,523
Accumulated depreciation	(1,426,382)	(1,328,011)
Total real estate properties, net	6,373,438	6,402,512
Cash and cash equivalents	27,160	31,749
Restricted cash	13,776	3,829
Acquired real estate leases and other intangible assets, net	476,494	514,446
Other assets, net	292,752	275,218
Total assets	7,183,620	7,227,754
LIABILITIES AND EQUITY
Unsecured revolving credit facility	434,000	327,000
Unsecured term loans, net	547,434	547,058
Senior unsecured notes, net	1,724,210	1,722,758
Secured debt and capital leases, net	817,083	1,117,649
Accrued interest	17,486	18,471
Assumed real estate lease obligations, net	101,007	106,038
Other liabilities	201,621	189,375
Total liabilities	3,842,841	4,028,349
Commitments and contingencies
Equity attributable to common shareholders:
Common shares of beneficial interest, $.01 par value: 300,000,000 shares authorized, 237,558,963 and 237,544,479 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively	2,376	2,375
Additional paid in capital	4,607,742	4,533,456
Cumulative net income	1,667,082	1,618,885
Cumulative other comprehensive income	58,861	34,549
Cumulative distributions	(3,175,144)	(2,989,860)
Total equity attributable to common shareholders	3,160,917	3,199,405
Noncontrolling interest:
Total equity attributable to noncontrolling interest	179,862	0
Total equity	3,340,779	3,199,405
Total liabilities and equity	$ 7,183,620	$ 7,227,754

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common shares of beneficial interest, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares of beneficial interest, shares authorized (in shares)	300,000,000	300,000,000
Common shares of beneficial interest, shares issued (in shares)	237,558,963	237,544,479
Common shares of beneficial interest, shares outstanding (in shares)	237,558,963	237,544,479

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues:
Rental income	$ 166,647,000	$ 163,997,000	$ 333,090,000	$ 325,419,000
Residents fees and services	98,366,000	97,370,000	196,484,000	194,323,000
Total revenues	265,013,000	261,367,000	529,574,000	519,742,000
Expenses:
Property operating expenses	102,795,000	97,474,000	203,851,000	195,422,000
Depreciation and amortization	69,669,000	71,372,000	142,844,000	142,594,000
General and administrative	22,922,000	11,965,000	38,005,000	22,828,000
Acquisition and certain other transaction related costs	0	180,000	292,000	619,000
Impairment of assets	5,082,000	4,961,000	5,082,000	12,351,000
Total expenses	200,468,000	185,952,000	390,074,000	373,814,000
Operating income	64,545,000	75,415,000	139,500,000	145,928,000
Dividend income	659,000	789,000	1,319,000	789,000
Interest and other income	76,000	177,000	195,000	242,000
Interest expense	(40,800,000)	(41,118,000)	(84,289,000)	(80,399,000)
Loss on early extinguishment of debt	(7,353,000)	0	(7,353,000)	(6,000)
Income from continuing operations before income tax expense and equity in earnings of an investee	17,127,000	35,263,000	49,372,000	66,554,000
Income tax expense	(99,000)	(108,000)	(191,000)	(202,000)
Equity in earnings of an investee	374,000	17,000	502,000	94,000
Income before gain on sale of properties	17,402,000	35,172,000	49,683,000	66,446,000
Gain on sale of properties	0	4,061,000	0	4,061,000
Net income	17,402,000	39,233,000	49,683,000	70,507,000
Net income attributable to noncontrolling interest	(1,360,000)	0	(1,486,000)	0
Net income attributable to common shareholders	16,042,000	39,233,000	48,197,000	70,507,000
Other comprehensive income:
Unrealized gain (loss) on investments in available for sale securities	(4,995,000)	15,931,000	19,050,000	40,118,000
Amounts reclassified from cumulative other comprehensive income to net income	5,082,000	0	5,082,000	0
Equity in unrealized gain of an investee	58,000	43,000	180,000	95,000
Other comprehensive income	145,000	15,974,000	24,312,000	40,213,000
Comprehensive income	17,547,000	55,207,000	73,995,000	110,720,000
Comprehensive income attributable to noncontrolling interest	(1,360,000)	0	(1,486,000)	0
Comprehensive income attributable to common shareholders	$ 16,187,000	$ 55,207,000	$ 72,509,000	$ 110,720,000
Weighted average common shares outstanding (basic) (in shares)	237,399	237,325	237,395	237,320
Weighted average common shares outstanding (diluted) (in shares)	237,445	237,363	237,433	237,349
Per common share amounts (basic and diluted):
Net income attributable to common shareholders (in dollars per share)	$ 0.07	$ 0.17	$ 0.20	$ 0.30

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Statement of Cash Flows [Abstract]
Net income	$ 49,683	$ 70,507
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	142,844	142,594
Amortization of debt issuance costs and debt discounts and premiums	2,803	2,783
Straight line rental income	(6,865)	(9,306)
Amortization of acquired real estate leases and other intangible assets	(2,610)	(2,558)
Loss on early extinguishment of debt	7,353	6
Impairment of assets	5,082	12,351
Gain on sale of properties	0	(4,061)
Other non-cash adjustments	(1,887)	(1,886)
Equity in earnings of an investee	(502)	(94)
Change in assets and liabilities:
Restricted cash	(9,947)	(871)
Other assets	7,094	6,202
Accrued interest	(985)	1,459
Other liabilities	9,487	(955)
Net cash provided by operating activities	201,550	216,171
Cash flows from investing activities:
Real estate acquisitions and deposits	(15,146)	(187,150)
Real estate improvements	(57,067)	(48,657)
Proceeds from sale of properties	0	9,279
Net cash used for investing activities	(72,213)	(226,528)
Cash flows from financing activities:
Proceeds from issuance of senior unsecured notes	0	250,000
Proceeds from borrowings on revolving credit facility	501,000	340,000
Repayments of borrowings on revolving credit facility	(394,000)	(366,000)
Repayment of other debt	(302,476)	(31,788)
Loss on early extinguishment of debt settled in cash	(5,485)	0
Payment of debt issuance costs	0	(8,650)
Repurchase of common shares	(11)	0
Proceeds from noncontrolling interest, net	255,813	0
Distributions to noncontrolling interest	(3,483)	0
Distributions to shareholders	(185,284)	(185,228)
Net cash used for financing activities	(133,926)	(1,666)
Decrease in cash and cash equivalents	(4,589)	(12,023)
Cash and cash equivalents at beginning of period	31,749	37,656
Cash and cash equivalents at end of period	27,160	25,633
Supplemental cash flows information:
Interest paid	82,470	76,472
Income taxes paid	$ 441	$ 355

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of Senior Housing Properties Trust and its subsidiaries, or we, us, or our, are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2016 , or our Annual Report. In the opinion of our management, all adjustments, which include only normal recurring adjustments, considered necessary for a fair presentation have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in our condensed consolidated financial statements include purchase price allocations, useful lives of fixed assets and impairment of real estate and intangible assets. In March 2017, we entered into a joint venture with a sovereign institutional investor for one of our properties leased to medical providers, medical related business, clinics and biotech laboratory tenants, or a MOB ( two buildings), located in Boston, Massachusetts. We have determined that this joint venture is a variable interest entity, or VIE, as defined under the Consolidation Topic of the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. We concluded that we must consolidate this VIE because we are the entity with the power to direct the activities that most significantly impact the VIE’s economic performance and we have the obligation to absorb losses of, and the right to receive benefits from, the VIE that could be significant to the VIE, and therefore are the primary beneficiary of the VIE. The assets of this VIE were $1,122,953 as of June 30, 2017 and consist primarily of the net real estate owned by the joint venture. The liabilities of this VIE were $723,417 as of June 30, 2017 and consist primarily of the mortgage debts on the property. The sovereign institutional investor's interest in this consolidated entity is reflected as noncontrolling interest in our condensed consolidated financial statements. See Note 7 for further information about this joint venture.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements On January 1, 2017, we adopted FASB Accounting Standards Update, or ASU, No. 2017-01, Clarifying the Definition of a Business . This update provides additional guidance on evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or of a business. This update defines three requirements for a set of assets and activities (collectively referred to as a “set”) to be considered a business: inputs, processes and outputs. As a result of the implementation of this update, certain property acquisitions, which under previous guidance were accounted for as business combinations, are now accounted for as acquisitions of assets. In an acquisition of assets, certain acquisition costs are capitalized as opposed to expensed under previous guidance. On January 1, 2017, we adopted FASB ASU No. 2016-09, Compensation - Stock Compensation , which identifies areas for simplification involving several aspects of accounting for share based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The adoption of ASU No. 2016-09 did not have a material impact in our condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers , which outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU No. 2014-09 states that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” While ASU No. 2014-09 specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate or equipment. In August 2015, the FASB provided for a one-year deferral of the effective date for ASU No. 2014-09, which is now effective for us beginning January 1, 2018. A substantial portion of our revenue consists of rental income from leasing arrangements, including leases with residents at properties leased to our taxable REIT subsidiaries, or TRSs, which is specifically excluded from ASU No. 2014-09. We are continuing to evaluate ASU No. 2014-09 (and related clarifying guidance issued by the FASB); however, we do not expect its adoption to have a significant impact on the amount or timing of our revenue recognition in our condensed consolidated financial statements. We currently expect to adopt the standard using the modified retrospective approach. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which changes how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. This update is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted subject to certain conditions. Currently, changes in fair value of these investments are recorded through other comprehensive income. ASU No. 2016-01 states that these changes will be recorded through earnings. We are continuing to evaluate this guidance, but we expect the implementation of this guidance will affect how changes in the fair value of available for sale securities we hold are presented in our condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). ASU No. 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease. A lessee is also required to record a right of use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. ASU No. 2016-02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently assessing the potential impact the adoption of ASU No. 2016-02 will have in our condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are currently assessing the potential impact the adoption of ASU No. 2016-13 will have in our condensed consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently assessing the potential impact the adoption of ASU No. 2016-15 will have in our condensed consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash , which clarifies how companies should present restricted cash and restricted cash equivalents. Companies will show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The new standard requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheets. ASU No. 2016-18 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Upon the adoption of ASU No. 2016-18, we will reconcile both cash and cash equivalents and restricted cash and restricted cash equivalents, whereas under the current guidance we explain the changes during the period for cash and cash equivalents only. In May 2017, the FASB issued ASU No. 2017-09, Scope of Modification Accounting , which clarifies which changes to the terms or conditions of a share-based payment award are subject to the guidance on modification accounting under ASC 718. Entities would apply the modification accounting guidance unless the value, vesting requirements and classification of a share-based payment award are the same immediately before and after a change to the terms or conditions of the award. ASU No. 2017-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are continuing to evaluate ASU No. 2017-09; however, we do not expect its adoption to have a material impact in our condensed consolidated financial statements.

Real Estate Properties

Real Estate Properties	6 Months Ended
	Jun. 30, 2017
Real Estate [Abstract]
Real Estate Properties	Real Estate Properties At June 30, 2017 , we owned 434 properties ( 460 buildings) located in 42 states and Washington, D.C. Acquisitions: MOBs: In January 2017, we acquired one MOB ( one building) located in Kansas with approximately 117,000 square feet for a purchase price of approximately $15,106 , including closing costs of $35 . We funded this asset acquisition using cash on hand and borrowings under our revolving credit facility. The allocation of the purchase price for this acquisition is as follows: Date Location Number of Properties Number of Buildings Square Feet (000’s) Cash Paid plus Assumed Debt (1) Land Building and Improvements Acquired Real Estate Leases (2) Acquired Real Estate Lease Obligations (2) Assumed Debt Premium on Assumed Debt Jan-17 Kansas 1 1 117 $ 15,106 $ 1,522 $ 7,246 $ 6,338 $ — $ — $ — (1) Amount includes the cash we paid and various closing settlement adjustments, as well as closing costs. (2) The weighted average amortization periods for acquired real estate leases at the time of this acquisition was 10.3 years . In July 2017, we acquired one MOB ( one building) located in Maryland with approximately 59,000 square feet for a purchase price of approximately $16,400 , excluding closing costs. Also in July 2017, we entered an agreement to acquire one MOB ( one building) located in Minnesota with approximately 150,000 square feet for a purchase price of approximately $16,650 , excluding closing costs. This acquisition is subject to conditions; accordingly, we may not acquire this property, this acquisition may be delayed or the terms may change. Impairment: We periodically evaluate our assets for impairments. Impairment indicators may include declining tenant or resident occupancy, weak or declining profitability from the property, decreasing tenant cash flows or liquidity, our decision to dispose of an asset before the end of its estimated useful life, and legislative, market or industry changes that could permanently reduce the value of an asset. If indicators of impairment are present, we evaluate the carrying value of the affected asset by comparing it to the expected future undiscounted net cash flows to be generated from that asset. If the sum of these expected future net cash flows is less than the carrying value, we reduce the net carrying value of the asset to its estimated fair value. We did not record any impairment charges for our real estate properties during the six months ended June 30, 2017 . See Note 4 for further information regarding other than temporary impairment losses recorded in 2017 on our investments in available for sale securities.

Investments in Available for Sa

Investments in Available for Sale Securities	6 Months Ended
	Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Investments in Available for Sale Securities	Investments in Available for Sale Securities At June 30, 2017 , we owned 2,637,408 shares of class A common stock of The RMR Group Inc., or RMR Inc. We classify these shares as available for sale securities and carry them at fair value in other assets in our condensed consolidated balance sheets, with unrealized gains and losses reported as a component of shareholders’ equity. Our historical cost basis for these shares is $69,826 . At June 30, 2017 , our investment in RMR Inc. had a fair value of $128,310 , resulting in a cumulative unrealized gain of $58,484 based on RMR Inc.’s quoted share price at June 30, 2017 ( $48.65 per share). At June 30, 2017 , we owned 4,235,000 common shares of Five Star Senior Living Inc., or Five Star. We classify these shares as available for sale securities and carry them at fair value in other assets in our condensed consolidated balance sheets, with unrealized gains and losses reported as a component of shareholders’ equity. In performing our periodic evaluation of other than temporary impairment on our investment in Five Star for the second quarter of 2017, we determined that, based upon the length of time and the extent to which the market value of our Five Star investment was below the carrying value of our Five Star investment, the decline in fair value should be deemed to be other than temporary at June 30, 2017. Accordingly, we recorded a loss on impairment of $5,082 to reduce the carrying value of our Five Star investment to its estimated fair value during the second quarter of 2017. We estimated fair value using the closing price of Five Star's common shares on The NASDAQ Stock Market LLC, or the Nasdaq, on June 30, 2017 ( $1.50 per share). At June 30, 2017, our Five Star investment had an adjusted cost basis and estimated fair value of $6,353 . See Notes 6 and 12 below for further information regarding our investments in available for sale securities.

Indebtedness

Indebtedness	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Indebtedness	Indebtedness Our principal debt obligations at June 30, 2017 were: (1) outstanding borrowings under our $1,000,000 unsecured revolving credit facility; (2) six public issuances of senior unsecured notes, including: (a) $400,000 principal amount at an annual interest rate of 3.25% due 2019, (b) $200,000 principal amount at an annual interest rate of 6.75% due 2020, (c) $300,000 principal amount at an annual interest rate of 6.75% due 2021, (d) $250,000 principal amount at an annual interest rate of 4.75% due 2024, (e) $350,000 principal amount at an annual interest rate of 5.625% due 2042 and (f) $250,000 principal amount at an annual interest rate of 6.25% due 2046; (3) our $350,000 principal amount unsecured term loan due 2020; (4) our $200,000 principal amount unsecured term loan due 2022; and (5) $807,775 aggregate principal amount of mortgages (excluding premiums, discounts and net debt issuance costs) secured by 24 of our properties ( 25 buildings) with maturity dates between 2018 and 2043. The 24 mortgaged properties ( 25 buildings) had a carrying value (before accumulated depreciation) of $1,232,046 at June 30, 2017 . We also had two properties subject to capital leases with lease obligations totaling $11,022 at June 30, 2017 ; these two properties had a carrying value (before accumulated depreciation) of $36,173 at June 30, 2017 , and the capital leases expire in 2026. In April 2017, we prepaid a mortgage note secured by 17 of our properties with an outstanding principal balance of approximately $277,837 plus an aggregate premium of $5,449 plus accrued interest, a maturity date in September 2019 and an annual interest rate of 6.71% . In May 2017, we prepaid, at par plus accrued interest, a mortgage note secured by one of our properties with an outstanding principal balance of approximately $10,579 , a maturity date in August 2017 and an annual interest rate of 6.15% . In June 2017, we prepaid, at par plus accrued interest, a mortgage note secured by one of our properties with an outstanding principal balance of approximately $8,807 , a maturity date in August 2037 and an annual interest rate of 5.95% . We recorded loss on early extinguishment of debt of $7,353 for the three and six months ended June 30, 2017 related to these prepayments. We have a $1,000,000 revolving credit facility that is available for general business purposes, including acquisitions. Our revolving credit facility provides that we can borrow, repay and re-borrow funds available under our revolving credit facility until maturity, and no principal repayment is due until maturity. Our revolving credit facility required annual interest to be paid on borrowings at LIBOR plus a premium, which was 130 basis points as of June 30, 2017 , plus a facility fee of 30 basis points per annum (as of June 30, 2017) on the total amount of lending commitments. In August 2017, we amended the agreement governing our revolving credit facility. As a result of the amendment, the interest rate payable on borrowings under the facility is reduced from LIBOR plus a premium of 130 basis points per annum (as of June 30, 2017) to LIBOR plus a premium of 120 basis points per annum, and the facility fee is reduced from 30 basis points per annum (as of June 30, 2017) to 25 basis points per annum on the total amount of lending commitments under the facility. The interest rate premium and facility fee are each subject to adjustment based upon changes to our credit ratings. Also as a result of the amendment, the stated maturity date of the facility was extended from January 15, 2018 to January 15, 2022, and, subject to the payment of an extension fee and meeting other conditions, we have the option to extend the maturity date of the facility for an additional year. The facility also includes a feature pursuant to which in certain circumstances maximum borrowings under the facility may be increased to up to $2,000,000 . As of June 30, 2017 , the annual interest rate payable on borrowings under our revolving credit facility was 2.5% . The weighted average annual interest rates for borrowings under our revolving credit facility were 2.3% and 1.7% for the three months ended June 30, 2017 and 2016 , respectively, and 2.2% and 1.7% for the six months ended June 30, 2017 and 2016 , respectively. As of June 30, 2017 , we had $434,000 outstanding and $566,000 available for borrowing, and as of August 2, 2017 , we had $415,000 outstanding and $585,000 available for borrowing under our revolving credit facility. We incurred interest expense and other associated costs related to our revolving credit facility of $2,662 and $3,454 for the three months ended June 30, 2017 and 2016 , respectively, and $5,026 and $7,136 for the six months ended June 30, 2017 and 2016 , respectively. We have a $350,000 term loan, which we borrowed in 2014. This term loan matures in January 2020, and is prepayable without penalty at any time. This term loan requires annual interest to be paid at LIBOR plus a premium of 140 basis points that is subject to adjustment based upon changes to our credit ratings. At June 30, 2017 , the annual interest rate payable on amounts outstanding under this term loan was 2.5% . The weighted average annual interest rate for amounts outstanding under this term loan was 2.5% and 1.9% for the three months ended June 30, 2017 and 2016 , respectively, and 2.3% and 1.9% for the six months ended June 30, 2017 and 2016 , respectively. We incurred interest expense and other associated costs related to this term loan of $2,140 and $1,635 for the three months ended June 30, 2017 and 2016 , respectively, and $4,056 and $3,249 for the six months ended June 30, 2017 and 2016 , respectively. This term loan includes an accordion feature under which maximum borrowings may be increased to up to $700,000 in certain circumstances. We also have a $200,000 term loan, which we borrowed in 2015. This term loan matures in September 2022, and is prepayable without penalty at any time beginning in September 2017. At June 30, 2017 , the annual interest rate payable on amounts outstanding under this term loan was 3.0% . The weighted average annual interest rate for amounts outstanding under this term loan was 2.9% and 2.3% for the three months ended June 30, 2017 and 2016 , respectively, and 2.8% and 2.3% for the six months ended June 30, 2017 and 2016 , respectively. We incurred interest expense and other associated costs related to this term loan of $1,427 and $1,133 for the three months ended June 30, 2017 and 2016 , respectively, and $2,725 and $2,260 for the six months ended June 30, 2017 and 2016 , respectively. This term loan includes an accordion feature under which maximum borrowings may be increased to up to $400,000 in certain circumstances. In August 2017, we amended the agreement governing this term loan. As a result of the amendment, the interest rate payable is reduced from LIBOR plus a premium of 180 basis points per annum (as of June 30, 2017) to LIBOR plus a premium of 135 basis points per annum, subject to adjustment based upon changes to our credit ratings. Our revolving credit facility and term loan agreements and our senior unsecured notes indentures and their supplements provide for acceleration of payment of all amounts due thereunder upon the occurrence and continuation of certain events of default, such as, in the case of our revolving credit facility and term loan agreements, a change of control of us, as defined, which includes The RMR Group LLC, or RMR LLC, ceasing to act as our business and property manager. Our revolving credit facility and term loan agreements and our senior unsecured notes indentures and their supplements also contain a number of covenants, including covenants that restrict our ability to incur debts, and generally require us to maintain certain financial ratios, and our revolving credit facility and term loan agreements restrict our ability to make distributions under certain circumstances. We believe we were in compliance with the terms and conditions of the respective covenants under our revolving credit facility and term loan agreements and our senior unsecured notes indentures and their supplements at June 30, 2017 .

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Assets and Liabilities	Fair Value of Assets and Liabilities The table below presents certain of our assets measured at fair value at June 30, 2017 , categorized by the level of inputs as defined in the fair value hierarchy under GAAP, used in the valuation of each asset: Significant Total as of Quoted Prices in Active Significant Other Unobservable June 30, Markets for Identical Observable Inputs Inputs Description 2017 Assets (Level 1) (Level 2) (Level 3) Recurring Fair Value Measurements Assets: Investments in available for sale securities (1) $ 134,662 $ 134,662 $ — $ — (1) Our investments in available for sale securities include our 2,637,408 shares of RMR Inc. class A common stock and our 4,235,000 Five Star common shares. The fair values of these shares are based upon quoted prices at June 30, 2017 in active markets (Level 1 inputs). See Note 4 for further information on our investments in available for sale securities. In addition to the assets described in the table above, our financial instruments at June 30, 2017 and December 31, 2016 included cash and cash equivalents, restricted cash, other assets, our revolving credit facility, term loans, senior unsecured notes, secured debt and capital leases and other unsecured obligations and liabilities. The fair values of these financial instruments approximated their carrying values in our condensed consolidated financial statements as of such dates, except as follows: As of June 30, 2017 As of December 31, 2016 Description Carrying Amount (1) Estimated Fair Value Carrying Amount (1) Estimated Fair Value Senior unsecured notes $ 1,724,210 $ 1,819,342 $ 1,722,758 $ 1,755,715 Secured debt (2) 806,061 784,752 1,106,183 1,090,515 $ 2,530,271 $ 2,604,094 $ 2,828,941 $ 2,846,230 (1) Includes unamortized debt issuance costs, premiums and discounts. (2) We assumed certain of these secured debts in connection with our acquisitions of certain properties. We recorded the assumed mortgage debts at estimated fair value on the date of acquisition and we are amortizing the fair value adjustments, if any, to interest expense over the respective terms of the mortgage debts to reduce interest expense to the estimated market interest rates as of the date of acquisition. We estimated the fair value of our two issuances of senior unsecured notes due 2042 and 2046 based on the closing price on the Nasdaq (a Level 1 input) as of June 30, 2017 . We estimated the fair values of our four issuances of senior unsecured notes due 2019, 2020, 2021 and 2024 using an average of the bid and ask price on or about June 30, 2017 (Level 2 inputs as defined in the fair value hierarchy under GAAP). We estimated the fair values of our secured debts by using discounted cash flows analyses and currently prevailing market terms as of the measurement date (Level 3 inputs as defined in the fair value hierarchy under GAAP). Because Level 3 inputs are unobservable, our estimated fair value may differ materially from the actual fair value.

Noncontrolling Interest

Noncontrolling Interest	6 Months Ended
	Jun. 30, 2017
Noncontrolling Interest [Abstract]
Noncontrolling Interest	Noncontrolling Interest In March 2017, we entered into a joint venture with a sovereign institutional investor for one of our MOBs ( two buildings) located in Boston, Massachusetts. The investor contributed approximately $260,891 for a 45% equity interest in the joint venture, and we retained the remaining 55% equity interest in the joint venture. Net proceeds from this transaction were approximately $255,813 , after transaction costs. We continue to effectively control this property and therefore continue to account for this property on a consolidated basis in our condensed consolidated financial statements under the VIE model. This transaction was considered a partial sale of real estate that did not result in profit recognition under the full accrual method due to our continuing involvement in the entity. We recognized a noncontrolling interest in our condensed consolidated balance sheets of approximately $181,859 , which is equal to 45% of the aggregate carrying value of the total equity of the property immediately prior to the transaction. The difference between the net proceeds received from this transaction and the noncontrolling interest recognized, which was approximately $73,954 , has been reflected as an increase in additional paid in capital in our condensed consolidated balance sheets. The portion of the joint venture's net income and comprehensive income not attributable to us, or $1,360 and $1,486 for the three and six months ended June 30, 2017 , respectively, is reported as noncontrolling interest in our condensed consolidated statements of comprehensive income. We made aggregate cash distributions to our joint venture partner of $3,483 during the three and six months ended June 30, 2017 , which are reflected as a decrease in total equity attributable to noncontrolling interest in our condensed consolidated balance sheets. As of June 30, 2017 , this joint venture held real estate assets with an aggregate net book value of $999,346 , subject to mortgage debts of $620,000 . In assessing whether we have a controlling interest in this joint venture arrangement and the requirement to consolidate the accounts of the joint venture entity, we considered the members' rights to residual gains and obligation to absorb losses, which activities most significantly impact the economic performance of the entity and which member has the power to direct those activities.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Shareholders’ Equity Share Issuances and Repurchases: On May 18, 2017, we granted 3,000 of our common shares, valued at $21.25 per share, the closing price of our common shares on the Nasdaq on that day, to each of our five Trustees as part of their annual compensation. On June 30, 2017, we purchased 516 of our common shares valued at $20.44 per share, the closing price of our common shares on the Nasdaq on that day, from employees of our manager, RMR LLC, in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of restricted common shares. Distributions: On February 21, 2017, we paid a regular quarterly distribution to common shareholders of $0.39 per share, or approximately $92,642 , that was declared on January 13, 2017 and was payable to shareholders of record on January 23, 2017. On May 18, 2017, we paid a regular quarterly distribution to common shareholders of $0.39 per share, or approximately $92,642 , that was declared on April 11, 2017 and was payable to shareholders of record on April 21, 2017. On July 12, 2017, we declared a regular quarterly distribution payable to common shareholders of record on July 24, 2017 of $0.39 per share, or approximately $92,648 . We expect to pay this distribution on or about August 17, 2017.

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting As of June 30, 2017 , we have four operating segments, of which three are separate reporting segments. We aggregate our triple net leased senior living communities, our managed senior living communities and our MOBs into three reporting segments, based on their similar operating and economic characteristics. The first reporting segment includes triple net leased senior living communities that provide short term and long term residential care and other services for residents and with respect to which we receive rents from the operators. The second reporting segment includes managed senior living communities that provide short term and long term residential care and other services for residents where we pay fees to the operator to manage the communities for our account. The third reporting segment includes MOBs where the tenants pay us rent. Our fourth segment includes all of our other operations, including certain properties that offer wellness, fitness and spa services to members and with respect to which we receive rents from operators, which we do not consider to be sufficiently material to constitute a separate reporting segment. For the Three Months Ended June 30, 2017 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Revenues: Rental income $ 67,426 $ — $ 94,651 $ 4,570 $ 166,647 Residents fees and services — 98,366 — — 98,366 Total revenues 67,426 98,366 94,651 4,570 265,013 Expenses: Property operating expenses — 75,149 27,646 — 102,795 Depreciation and amortization 20,470 16,390 31,861 948 69,669 General and administrative — — — 22,922 22,922 Impairment of assets — — — 5,082 5,082 Total expenses 20,470 91,539 59,507 28,952 200,468 Operating income (loss) 46,956 6,827 35,144 (24,382 ) 64,545 Dividend income — — — 659 659 Interest and other income — — — 76 76 Interest expense (2,211 ) (1,176 ) (6,250 ) (31,163 ) (40,800 ) Loss on early extinguishment of debt (7,294 ) — (59 ) — (7,353 ) Income (loss) from continuing operations before income tax expense and equity in earnings of an investee 37,451 5,651 28,835 (54,810 ) 17,127 Income tax expense — — — (99 ) (99 ) Equity in earnings of an investee — — — 374 374 Net income (loss) 37,451 5,651 28,835 (54,535 ) 17,402 Net income attributable to noncontrolling interest — — (1,360 ) — (1,360 ) Net income (loss) attributable to common shareholders $ 37,451 $ 5,651 $ 27,475 $ (54,535 ) $ 16,042 As of June 30, 2017 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Total assets $ 2,276,979 $ 1,238,723 $ 3,309,089 $ 358,829 $ 7,183,620 For the Three Months Ended June 30, 2016 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Revenues: Rental income $ 66,441 $ — $ 92,978 $ 4,578 $ 163,997 Residents fees and services — 97,370 — — 97,370 Total revenues 66,441 97,370 92,978 4,578 261,367 Expenses: Property operating expenses 423 71,642 25,409 — 97,474 Depreciation and amortization 19,273 20,140 31,011 948 71,372 General and administrative — — — 11,965 11,965 Acquisition and certain other transaction related costs — — — 180 180 Impairment of assets — — 4,961 — 4,961 Total expenses 19,696 91,782 61,381 13,093 185,952 Operating income (loss) 46,745 5,588 31,597 (8,515 ) 75,415 Dividend income — — — 789 789 Interest and other income — — — 177 177 Interest expense (6,282 ) (2,663 ) (844 ) (31,329 ) (41,118 ) Income (loss) from continuing operations before income tax expense and equity in earnings of an investee 40,463 2,925 30,753 (38,878 ) 35,263 Income tax expense — — — (108 ) (108 ) Equity in earnings of an investee — — — 17 17 Income (loss) before gain on sale of properties 40,463 2,925 30,753 (38,969 ) 35,172 Gain on sale of properties 4,061 — — — 4,061 Net income (loss) $ 44,524 $ 2,925 $ 30,753 $ (38,969 ) $ 39,233 As of December 31, 2016 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Total assets $ 2,289,045 $ 1,260,032 $ 3,333,141 $ 345,536 $ 7,227,754 For the Six Months Ended June 30, 2017 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Revenues: Rental income $ 134,678 $ — $ 189,297 $ 9,115 $ 333,090 Residents fees and services — 196,484 — — 196,484 Total revenues 134,678 196,484 189,297 9,115 529,574 Expenses: Property operating expenses — 149,028 54,823 — 203,851 Depreciation and amortization 40,804 36,605 63,539 1,896 142,844 General and administrative — — — 38,005 38,005 Acquisition and certain other transaction related costs — — — 292 292 Impairment of assets — — — 5,082 5,082 Total expenses 40,804 185,633 118,362 45,275 390,074 Operating income (loss) 93,874 10,851 70,935 (36,160 ) 139,500 Dividend income — — — 1,319 1,319 Interest and other income — — — 195 195 Interest expense (7,550 ) (2,352 ) (12,570 ) (61,817 ) (84,289 ) Loss on early extinguishment of debt (7,294 ) — (59 ) — (7,353 ) Income (loss) from continuing operations before income tax expense and equity in earnings of an investee 79,030 8,499 58,306 (96,463 ) 49,372 Income tax expense — — — (191 ) (191 ) Equity in earnings of an investee — — — 502 502 Net income (loss) 79,030 8,499 58,306 (96,152 ) 49,683 Net income attributable to noncontrolling interest — — (1,486 ) — (1,486 ) Net income (loss) attributable to common shareholders $ 79,030 $ 8,499 $ 56,820 $ (96,152 ) $ 48,197 As of June 30, 2017 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Total assets $ 2,276,979 $ 1,238,723 $ 3,309,089 $ 358,829 $ 7,183,620 For the Six Months Ended June 30, 2016 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Revenues: Rental income $ 131,749 $ — $ 184,559 $ 9,111 $ 325,419 Residents fees and services — 194,323 — — 194,323 Total revenues 131,749 194,323 184,559 9,111 519,742 Expenses: Property operating expenses 786 143,820 50,816 — 195,422 Depreciation and amortization 38,674 40,158 61,866 1,896 142,594 General and administrative — — — 22,828 22,828 Acquisition and certain other transaction related costs — — — 619 619 Impairment of assets 4,391 — 7,960 — 12,351 Total expenses 43,851 183,978 120,642 25,343 373,814 Operating income (loss) 87,898 10,345 63,917 (16,232 ) 145,928 Dividend income — — — 789 789 Interest and other income — — — 242 242 Interest expense (12,665 ) (5,227 ) (1,798 ) (60,709 ) (80,399 ) Loss on early extinguishment of debt — (6 ) — — (6 ) Income (loss) from continuing operations before income tax expense and equity in earnings of an investee 75,233 5,112 62,119 (75,910 ) 66,554 Income tax expense — — — (202 ) (202 ) Equity in earnings of an investee — — — 94 94 Income (loss) from before gain on sale of properties 75,233 5,112 62,119 (76,018 ) 66,446 Gain on sale of properties 4,061 — — — 4,061 Net income (loss) $ 79,294 $ 5,112 $ 62,119 $ (76,018 ) $ 70,507 As of December 31, 2016 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Total assets $ 2,289,045 $ 1,260,032 $ 3,333,141 $ 345,536 $ 7,227,754

Leases and Management Agreement

Leases and Management Agreements with Five Star	6 Months Ended
	Jun. 30, 2017
Risks and Uncertainties [Abstract]
Leases and Management Agreements with Five Star	Leases and Management Agreements with Five Star Our Senior Living Communities Leased by Five Star. We are Five Star’s largest landlord and Five Star is our largest tenant. As of June 30, 2017 and 2016 , we leased 185 and 184 senior living communities to Five Star, respectively. We lease senior living communities to Five Star pursuant to five leases with Five Star. We recognized total rental income from Five Star of $51,123 , and $48,234 for the three months ended June 30, 2017 and 2016 , respectively, and $102,108 and $96,341 for the six months ended June 30, 2017 and 2016 , respectively. These amounts exclude percentage rent payments we received from Five Star of $1,392 and $1,388 for the three months ended June 30, 2017 and 2016 , respectively, and $2,837 and $2,861 for the six months ended June 30, 2017 and 2016 , respectively. We determine actual percentage rent due under our Five Star leases annually and recognize any resulting amount as rental income at year end when all contingencies are met. As of June 30, 2017 and December 31, 2016 , we had rents receivable from Five Star of $17,044 and $18,320 , respectively, which amounts are included in other assets in our condensed consolidated balance sheets. Rental income from Five Star represented 19.3% of our total revenues for both the three and six months ended June 30, 2017 , respectively, and the properties Five Star leases from us represented 27.5% of our total gross book value of real estate assets as of June 30, 2017 . Pursuant to the terms of our leases with Five Star, for the six months ended June 30, 2017 and 2016 , we funded $19,308 and $11,836 , respectively, of improvements to communities leased to Five Star. As a result, the annual rent payable to us by Five Star increased by approximately $1,547 and $949 , respectively. During the quarter ended June 30, 2017, we and Five Star agreed to amend the applicable lease for certain construction, expansion and development projects at two senior living communities we own and lease to Five Star. If and when Five Star requests that we purchase improvements related to these specific projects from them, Five Star’s annual rent payable to us will increase by an amount equal to the interest rate then applicable to our borrowings under our revolving credit facility plus 2% per annum of the amount we purchased. This amount of increased rent will apply until 12 months after a certificate of occupancy is issued with respect to the project; thereafter, Five Star’s annual rent payable to us will be revised to equal the amount determined pursuant to the capital improvement formula specified in the applicable lease. In June 2016, we entered into an agreement with Five Star pursuant to which, on June 29, 2016, we purchased seven senior living communities from Five Star for an aggregate purchase price of $112,350 , and we simultaneously leased these communities back to Five Star under a new long term lease agreement. Our Senior Living Communities Managed by Five Star . Five Star managed 68 and 62 senior living communities for our account as of June 30, 2017 and 2016 , respectively. We lease our senior living communities that are managed by Five Star and include assisted living units or skilled nursing facility, or SNF, beds to our TRSs and Five Star manages these communities pursuant to long term management agreements. We incurred management fees payable to Five Star of $3,554 and $2,819 for the three months ended June 30, 2017 and 2016 , respectively, and $7,117 and $5,623 for the six months ended June 30, 2017 and 2016 , respectively. These amounts are included in property operating expenses or have been capitalized, as appropriate, in our condensed consolidated financial statements. During the quarter ended June 30, 2017, we and Five Star agreed to amend the applicable management and pooling agreements for a construction, expansion and development project at a senior living community that we own and is managed by Five Star. Our minimum return of invested capital for this specific project will increase by an amount equal to the interest rate then applicable to our borrowings under our revolving credit facility plus 2% per annum. This amount of increased minimum return will apply until 12 months after a certificate of occupancy is issued with respect to the project; thereafter, the amount of annual minimum return of invested capital will be revised to equal the amount determined pursuant to the applicable management and pooling agreements. We and Five Star also agreed that the commencement of the measurement period for determining whether the specified annual minimum return under the applicable management and pooling agreements has been achieved will be deferred until 12 months after a certificate of occupancy is issued with respect to the project. Simultaneously with the June 2016 sale and leaseback transaction, we and Five Star terminated three of our four then existing pooling agreements and entered into 10 new pooling agreements that combine our management agreements with Five Star for senior living communities that include assisted living units. Pursuant to these management agreements and the pooling agreements, Five Star receives management fees equal to either 3% or 5% of the gross revenues realized at the applicable communities, reimbursement for its direct costs and expenses related to such communities, annual incentive fees if certain operating results at those communities are achieved and fees for its supervision of capital expenditure projects at those communities equal to 3% of amounts funded by us. Under the pooling agreements, the calculations of Five Star's fees and of our annual minimum returns related to management agreements that include assisted living units that became effective before May 2015 and had been pooled under one of the previously existing pooling agreements are generally the same as they were under the previously existing pooling agreements. However, for certain communities, the pooling agreements reduced our annual minimum returns, and also, with respect to 10 communities, reset the annual minimum returns we receive before Five Star is paid incentive fees to specified amounts. For those management agreements that include assisted living units that became effective from and after May 2015, the pooling agreements increased the management fees Five Star receives from 3% to 5% of the gross revenues realized at the applicable communities, and changed the potential annual incentive fees from 35% to 20% of the annual net operating income, or NOI, of the applicable communities remaining after we realize our requisite annual minimum returns.

Business and Property Managemen

Business and Property Management Agreements with RMR LLC	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Business and Property Management Agreements with RMR LLC	Business and Property Management Agreements with RMR LLC We have no employees. The personnel and various services we require to operate our business are provided to us by RMR LLC. We have two agreements with RMR LLC to provide management services to us: (1) a business management agreement, which relates to our business generally; and (2) a property management agreement, which relates to the property level operations of our MOBs. We also have a subsidiary level management agreement with RMR LLC related to one of our MOBs located in Boston, Massachusetts, which we entered in connection with the joint venture arrangement for that MOB. Under that agreement, our subsidiary pays RMR LLC certain business management fees directly, which fees are credited against the business management fees payable by us to RMR LLC. Pursuant to our business management agreement with RMR LLC, we recognized net business management fees of $20,431 and $9,243 for the three months ended June 30, 2017 and 2016 , respectively, and $33,212 and $17,590 for the six months ended June 30, 2017 and 2016 , respectively. The business management fees for the three and six months ended June 30, 2017 include $725 and $787 , respectively, of management fees related to our subsidiary level management agreement with RMR LLC entered into in connection with our joint venture arrangement, as well as $10,760 and $14,026 , respectively, of estimated 2017 incentive fees based on our common share total return as of June 30, 2017 . Although we recognized estimated incentive fees in accordance with GAAP, the actual amount of incentive fees payable to RMR LLC for 2017, if any, will be based on our common share total return, as defined, for the three year period ending December 31, 2017, and will be payable in 2018. The net business management fees we recognized for the 2017 and 2016 periods are included in general and administrative expense in our consolidated statements of comprehensive income. Pursuant to our property management agreement with RMR LLC, we recognized aggregate net property management and construction supervision fees of $2,708 and $2,686 for the three months ended June 30, 2017 and 2016 , respectively, and $4,888 and $5,232 for the six months ended June 30, 2017 and 2016 , respectively, which amounts are included in property operating expenses or have been capitalized, as appropriate, in our condensed consolidated financial statements. We are generally responsible for all of our operating expenses, including certain expenses incurred by RMR LLC on our behalf. Our property level operating expenses, including certain payroll and related costs incurred by RMR LLC, are generally incorporated into rents charged to our tenants. We reimbursed RMR LLC $2,383 and $2,171 for property management related expenses for the three months ended June 30, 2017 and 2016 , respectively, and $4,763 and $4,299 for the six months ended June 30, 2017 and 2016 , respectively, which amounts are included in property operating expenses in our condensed consolidated statements of comprehensive income. In addition, we are responsible for our share of RMR LLC's costs for providing our internal audit function. The amounts recognized as expense for internal audit costs were $67 for each of the three months ended June 30, 2017 and 2016 , and $134 for each of the six months ended June 30, 2017 and 2016 , which amounts are included in general and administrative expense in our condensed consolidated statements of comprehensive income.

Related Person Transactions

Related Person Transactions	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Person Transactions	Related Person Transactions We have relationships and historical and continuing transactions with Five Star, RMR LLC, RMR Inc., Affiliates Insurance Company, or AIC, and others related to them, including other companies to which RMR LLC provides management services and which have trustees, directors and officers who are also our Trustees or officers. Five Star. We are currently one of Five Star’s largest stockholders. As of June 30, 2017 , we owned 4,235,000 of Five Star’s common shares, or approximately 8.5% of Five Star’s outstanding common shares. Five Star is our largest tenant and the manager of our managed senior living communities. As of June 30, 2017 , our Managing Trustees, the controlling shareholders of RMR LLC's parent, beneficially owned, directly and indirectly, 36.7% of Five Star's outstanding common shares. RMR LLC provides management services to both us and Five Star. See Note 10 for further information regarding our relationships, agreements and transactions with Five Star and Note 4 for further information regarding our investment in Five Star. Our Manager, RMR LLC. See Note 11 for further information regarding our management agreements with RMR LLC. RMR Inc. RMR LLC is a subsidiary of RMR Inc. and RMR Inc. is the managing member of RMR LLC. The controlling shareholder of RMR Inc., ABP Trust, is owned by our Managing Trustees. As of June 30, 2017 , we owned 2,637,408 shares of class A common stock of RMR Inc. See Note 4 for further information regarding our investment in RMR Inc. AIC. We, ABP Trust, Five Star and four other companies to which RMR LLC provides management services currently own AIC, an Indiana insurance company, in equal amounts. We and the other AIC shareholders participate in a combined property insurance program arranged and reinsured in part by AIC; we also have a one year standalone insurance policy that provides coverage for our MOB ( two buildings) located in Boston, Massachusetts that is subject to our joint venture arrangement, which we obtained as a part of this insurance program. We currently expect to pay aggregate annual premiums, including taxes and fees, of approximately $2,453 in connection with this insurance program for the policy year ending June 30, 2018, which amount may be adjusted from time to time as we acquire and dispose of properties that are included in this insurance program. As of June 30, 2017 and December 31, 2016 , our investment in AIC had a carrying value of $7,798 and $7,116 , respectively. These amounts are included in other assets in our condensed consolidated balance sheets. We recognized income related to our investment in AIC, which amounts are presented as equity in earnings of an investee in our condensed consolidated statements of comprehensive income. Our other comprehensive income includes our proportionate part of unrealized gains on securities which are owned and held for sale by AIC. For further information about these and certain other related person relationships and transactions, please refer to our Annual Report.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We have elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, and as such, are generally not subject to federal and most state income taxation on our operating income provided we distribute our taxable income to our shareholders and meet certain organization and operating requirements. We do, however, lease certain managed senior living communities to our wholly owned TRSs that, unlike most of our subsidiaries, file a separate consolidated federal corporate income tax return and are subject to federal and state income taxes. Our consolidated income tax provision includes the income tax provision related to the operations of our TRSs and certain state income taxes we incur despite our taxation as a REIT. During the three months ended June 30, 2017 and 2016 , we recognized income tax expense of $99 and $108 , respectively, and during the six months ended June 30, 2017 and 2016 , we recognized income tax expense of $191 and $202 , respectively.

Weighted Average Common Shares

Weighted Average Common Shares	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Weighted Average Common Shares	Weighted Average Common Shares The following table provides a reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per share (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Weighted average common shares for basic earnings per share 237,399 237,325 237,395 237,320 Effect of dilutive securities: unvested share awards 46 38 38 29 Weighted average common shares for diluted earnings per share 237,445 237,363 237,433 237,349

Recent Accounting Pronounceme20

Recent Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements On January 1, 2017, we adopted FASB Accounting Standards Update, or ASU, No. 2017-01, Clarifying the Definition of a Business . This update provides additional guidance on evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or of a business. This update defines three requirements for a set of assets and activities (collectively referred to as a “set”) to be considered a business: inputs, processes and outputs. As a result of the implementation of this update, certain property acquisitions, which under previous guidance were accounted for as business combinations, are now accounted for as acquisitions of assets. In an acquisition of assets, certain acquisition costs are capitalized as opposed to expensed under previous guidance. On January 1, 2017, we adopted FASB ASU No. 2016-09, Compensation - Stock Compensation , which identifies areas for simplification involving several aspects of accounting for share based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The adoption of ASU No. 2016-09 did not have a material impact in our condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers , which outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU No. 2014-09 states that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” While ASU No. 2014-09 specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate or equipment. In August 2015, the FASB provided for a one-year deferral of the effective date for ASU No. 2014-09, which is now effective for us beginning January 1, 2018. A substantial portion of our revenue consists of rental income from leasing arrangements, including leases with residents at properties leased to our taxable REIT subsidiaries, or TRSs, which is specifically excluded from ASU No. 2014-09. We are continuing to evaluate ASU No. 2014-09 (and related clarifying guidance issued by the FASB); however, we do not expect its adoption to have a significant impact on the amount or timing of our revenue recognition in our condensed consolidated financial statements. We currently expect to adopt the standard using the modified retrospective approach. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which changes how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. This update is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted subject to certain conditions. Currently, changes in fair value of these investments are recorded through other comprehensive income. ASU No. 2016-01 states that these changes will be recorded through earnings. We are continuing to evaluate this guidance, but we expect the implementation of this guidance will affect how changes in the fair value of available for sale securities we hold are presented in our condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). ASU No. 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease. A lessee is also required to record a right of use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. ASU No. 2016-02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently assessing the potential impact the adoption of ASU No. 2016-02 will have in our condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are currently assessing the potential impact the adoption of ASU No. 2016-13 will have in our condensed consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently assessing the potential impact the adoption of ASU No. 2016-15 will have in our condensed consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash , which clarifies how companies should present restricted cash and restricted cash equivalents. Companies will show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The new standard requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheets. ASU No. 2016-18 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Upon the adoption of ASU No. 2016-18, we will reconcile both cash and cash equivalents and restricted cash and restricted cash equivalents, whereas under the current guidance we explain the changes during the period for cash and cash equivalents only. In May 2017, the FASB issued ASU No. 2017-09, Scope of Modification Accounting , which clarifies which changes to the terms or conditions of a share-based payment award are subject to the guidance on modification accounting under ASC 718. Entities would apply the modification accounting guidance unless the value, vesting requirements and classification of a share-based payment award are the same immediately before and after a change to the terms or conditions of the award. ASU No. 2017-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are continuing to evaluate ASU No. 2017-09; however, we do not expect its adoption to have a material impact in our condensed consolidated financial statements.

Real Estate Properties (Tables)

Real Estate Properties (Tables)	6 Months Ended
	Jun. 30, 2017
Real Estate [Abstract]
Schedule of real estate property acquisition	The allocation of the purchase price for this acquisition is as follows: Date Location Number of Properties Number of Buildings Square Feet (000’s) Cash Paid plus Assumed Debt (1) Land Building and Improvements Acquired Real Estate Leases (2) Acquired Real Estate Lease Obligations (2) Assumed Debt Premium on Assumed Debt Jan-17 Kansas 1 1 117 $ 15,106 $ 1,522 $ 7,246 $ 6,338 $ — $ — $ — (1) Amount includes the cash we paid and various closing settlement adjustments, as well as closing costs. (2) The weighted average amortization periods for acquired real estate leases at the time of this acquisition was 10.3 years .

Fair Value of Assets and Liab22

Fair Value of Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Assets and liabilities recurring and nonrecurring measured at fair value	The table below presents certain of our assets measured at fair value at June 30, 2017 , categorized by the level of inputs as defined in the fair value hierarchy under GAAP, used in the valuation of each asset: Significant Total as of Quoted Prices in Active Significant Other Unobservable June 30, Markets for Identical Observable Inputs Inputs Description 2017 Assets (Level 1) (Level 2) (Level 3) Recurring Fair Value Measurements Assets: Investments in available for sale securities (1) $ 134,662 $ 134,662 $ — $ — (1) Our investments in available for sale securities include our 2,637,408 shares of RMR Inc. class A common stock and our 4,235,000 Five Star common shares. The fair values of these shares are based upon quoted prices at June 30, 2017 in active markets (Level 1 inputs). See Note 4 for further information on our investments in available for sale securities.
Schedule of carrying value and fair value of the financial instruments	The fair values of these financial instruments approximated their carrying values in our condensed consolidated financial statements as of such dates, except as follows: As of June 30, 2017 As of December 31, 2016 Description Carrying Amount (1) Estimated Fair Value Carrying Amount (1) Estimated Fair Value Senior unsecured notes $ 1,724,210 $ 1,819,342 $ 1,722,758 $ 1,755,715 Secured debt (2) 806,061 784,752 1,106,183 1,090,515 $ 2,530,271 $ 2,604,094 $ 2,828,941 $ 2,846,230 (1) Includes unamortized debt issuance costs, premiums and discounts. (2) We assumed certain of these secured debts in connection with our acquisitions of certain properties. We recorded the assumed mortgage debts at estimated fair value on the date of acquisition and we are amortizing the fair value adjustments, if any, to interest expense over the respective terms of the mortgage debts to reduce interest expense to the estimated market interest rates as of the date of acquisition.

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of segment reporting information	For the Three Months Ended June 30, 2017 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Revenues: Rental income $ 67,426 $ — $ 94,651 $ 4,570 $ 166,647 Residents fees and services — 98,366 — — 98,366 Total revenues 67,426 98,366 94,651 4,570 265,013 Expenses: Property operating expenses — 75,149 27,646 — 102,795 Depreciation and amortization 20,470 16,390 31,861 948 69,669 General and administrative — — — 22,922 22,922 Impairment of assets — — — 5,082 5,082 Total expenses 20,470 91,539 59,507 28,952 200,468 Operating income (loss) 46,956 6,827 35,144 (24,382 ) 64,545 Dividend income — — — 659 659 Interest and other income — — — 76 76 Interest expense (2,211 ) (1,176 ) (6,250 ) (31,163 ) (40,800 ) Loss on early extinguishment of debt (7,294 ) — (59 ) — (7,353 ) Income (loss) from continuing operations before income tax expense and equity in earnings of an investee 37,451 5,651 28,835 (54,810 ) 17,127 Income tax expense — — — (99 ) (99 ) Equity in earnings of an investee — — — 374 374 Net income (loss) 37,451 5,651 28,835 (54,535 ) 17,402 Net income attributable to noncontrolling interest — — (1,360 ) — (1,360 ) Net income (loss) attributable to common shareholders $ 37,451 $ 5,651 $ 27,475 $ (54,535 ) $ 16,042 As of June 30, 2017 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Total assets $ 2,276,979 $ 1,238,723 $ 3,309,089 $ 358,829 $ 7,183,620 For the Three Months Ended June 30, 2016 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Revenues: Rental income $ 66,441 $ — $ 92,978 $ 4,578 $ 163,997 Residents fees and services — 97,370 — — 97,370 Total revenues 66,441 97,370 92,978 4,578 261,367 Expenses: Property operating expenses 423 71,642 25,409 — 97,474 Depreciation and amortization 19,273 20,140 31,011 948 71,372 General and administrative — — — 11,965 11,965 Acquisition and certain other transaction related costs — — — 180 180 Impairment of assets — — 4,961 — 4,961 Total expenses 19,696 91,782 61,381 13,093 185,952 Operating income (loss) 46,745 5,588 31,597 (8,515 ) 75,415 Dividend income — — — 789 789 Interest and other income — — — 177 177 Interest expense (6,282 ) (2,663 ) (844 ) (31,329 ) (41,118 ) Income (loss) from continuing operations before income tax expense and equity in earnings of an investee 40,463 2,925 30,753 (38,878 ) 35,263 Income tax expense — — — (108 ) (108 ) Equity in earnings of an investee — — — 17 17 Income (loss) before gain on sale of properties 40,463 2,925 30,753 (38,969 ) 35,172 Gain on sale of properties 4,061 — — — 4,061 Net income (loss) $ 44,524 $ 2,925 $ 30,753 $ (38,969 ) $ 39,233 As of December 31, 2016 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Total assets $ 2,289,045 $ 1,260,032 $ 3,333,141 $ 345,536 $ 7,227,754 For the Six Months Ended June 30, 2017 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Revenues: Rental income $ 134,678 $ — $ 189,297 $ 9,115 $ 333,090 Residents fees and services — 196,484 — — 196,484 Total revenues 134,678 196,484 189,297 9,115 529,574 Expenses: Property operating expenses — 149,028 54,823 — 203,851 Depreciation and amortization 40,804 36,605 63,539 1,896 142,844 General and administrative — — — 38,005 38,005 Acquisition and certain other transaction related costs — — — 292 292 Impairment of assets — — — 5,082 5,082 Total expenses 40,804 185,633 118,362 45,275 390,074 Operating income (loss) 93,874 10,851 70,935 (36,160 ) 139,500 Dividend income — — — 1,319 1,319 Interest and other income — — — 195 195 Interest expense (7,550 ) (2,352 ) (12,570 ) (61,817 ) (84,289 ) Loss on early extinguishment of debt (7,294 ) — (59 ) — (7,353 ) Income (loss) from continuing operations before income tax expense and equity in earnings of an investee 79,030 8,499 58,306 (96,463 ) 49,372 Income tax expense — — — (191 ) (191 ) Equity in earnings of an investee — — — 502 502 Net income (loss) 79,030 8,499 58,306 (96,152 ) 49,683 Net income attributable to noncontrolling interest — — (1,486 ) — (1,486 ) Net income (loss) attributable to common shareholders $ 79,030 $ 8,499 $ 56,820 $ (96,152 ) $ 48,197 As of June 30, 2017 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Total assets $ 2,276,979 $ 1,238,723 $ 3,309,089 $ 358,829 $ 7,183,620 For the Six Months Ended June 30, 2016 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Revenues: Rental income $ 131,749 $ — $ 184,559 $ 9,111 $ 325,419 Residents fees and services — 194,323 — — 194,323 Total revenues 131,749 194,323 184,559 9,111 519,742 Expenses: Property operating expenses 786 143,820 50,816 — 195,422 Depreciation and amortization 38,674 40,158 61,866 1,896 142,594 General and administrative — — — 22,828 22,828 Acquisition and certain other transaction related costs — — — 619 619 Impairment of assets 4,391 — 7,960 — 12,351 Total expenses 43,851 183,978 120,642 25,343 373,814 Operating income (loss) 87,898 10,345 63,917 (16,232 ) 145,928 Dividend income — — — 789 789 Interest and other income — — — 242 242 Interest expense (12,665 ) (5,227 ) (1,798 ) (60,709 ) (80,399 ) Loss on early extinguishment of debt — (6 ) — — (6 ) Income (loss) from continuing operations before income tax expense and equity in earnings of an investee 75,233 5,112 62,119 (75,910 ) 66,554 Income tax expense — — — (202 ) (202 ) Equity in earnings of an investee — — — 94 94 Income (loss) from before gain on sale of properties 75,233 5,112 62,119 (76,018 ) 66,446 Gain on sale of properties 4,061 — — — 4,061 Net income (loss) $ 79,294 $ 5,112 $ 62,119 $ (76,018 ) $ 70,507 As of December 31, 2016 Triple Net Leased Senior Living Communities Managed Senior Living Communities MOBs All Other Operations Consolidated Total assets $ 2,289,045 $ 1,260,032 $ 3,333,141 $ 345,536 $ 7,227,754

Weighted Average Common Shares

Weighted Average Common Shares (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Shares	The following table provides a reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per share (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Weighted average common shares for basic earnings per share 237,399 237,325 237,395 237,320 Effect of dilutive securities: unvested share awards 46 38 38 29 Weighted average common shares for diluted earnings per share 237,445 237,363 237,433 237,349

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Thousands	1 Months Ended
	Mar. 31, 2017buildingproperty	Jun. 30, 2017USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of properties included in joint venture agreement | property	1
Number of buildings included in joint venture agreement | building	2
Variable interest entity, consolidated, carrying amount, assets		$ 1,122,953
Variable interest entity, consolidated, carrying amount, liabilities		$ 723,417

Real Estate Properties (Details

Real Estate Properties (Details) ft² in Thousands	1 Months Ended						6 Months Ended
	Jul. 31, 2017USD ($)ft²buildingproperty	Jan. 31, 2017ft²	Jan. 31, 2017ft²living_unit	Jan. 31, 2017ft²building	Jan. 31, 2017USD ($)ft²	Jan. 31, 2017ft²property	Jun. 30, 2017USD ($)statebuildingproperty
Real Estate Properties
Number of properties owned | property							434
Number of buildings owned | building							460
Number of states in which properties are located | state							42
Impairment of assets							$ 0
Acquisition
Real Estate Properties
Weighted average amortization period		10 years 3 months 18 days
Acquisition | MOBs | Kansas
Real Estate Properties
Number of properties			1			1
Number of buildings acquired | building				1
Area of real estate properties (in square feet) | ft²		117	117	117	117	117
Purchase price including closing costs and working capital adjustments					$ 15,106,000
Acquisition and certain other transaction related costs					$ 35,000
Subsequent Event | Acquisition | MOBs | MARYLAND
Real Estate Properties
Number of properties | property	1
Number of buildings acquired | building	1
Area of real estate properties (in square feet) | ft²	59
Purchase price excluding closing costs	$ 16,400,000
Scenario, Plan | Subsequent Event | Acquisition | MOBs | Minnesota
Real Estate Properties
Number of buildings acquired | building	1
Area of real estate properties (in square feet) | ft²	150
Purchase price excluding closing costs	$ 16,650,000

Real Estate Properties (Acquisi

Real Estate Properties (Acquisitions) (Details) - Acquisition - Kansas - MOBs ft² in Thousands, $ in Thousands	1 Months Ended
	Jan. 31, 2017USD ($)ft²living_unit	Jan. 31, 2017USD ($)ft²building	Jan. 31, 2017USD ($)ft²	Jan. 31, 2017USD ($)ft²property
Real Estate Properties
Number of properties	1			1
Number of buildings acquired | building		1
Area of real estate properties (in square feet) | ft²	117	117	117	117
Purchase price including closing costs and working capital adjustments			$ 15,106
Real estate properties acquired, intangible lease assets	$ 6,338	$ 6,338	6,338	$ 6,338
Real estate properties acquired, intangible lease liabilities	$ 0	$ 0	0	$ 0
Assumption of mortgage notes payable			0
Premium on assumed debt			0
Land
Real Estate Properties
Real estate properties acquired, property plant and equipment			1,522
Building improvements
Real Estate Properties
Real estate properties acquired, property plant and equipment			$ 7,246

Investments in Available for 28

Investments in Available for Sale Securities (Details) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017USD ($)shares	Jun. 30, 2017USD ($)$ / sharesshares
The RMR Group Inc
Unrealized gain on investments
Amount of investment acquired	$ 69,826	$ 69,826
Fair value of the investments in available for sale securities	128,310	128,310
Unrealized gain	$ 58,484	$ 58,484
Weighted average costs (in dollars per share) | $ / shares		$ 48.65
The RMR Group Inc | Class A common shares
Unrealized gain on investments
Investment in common shares (in shares) | shares	2,637,408	2,637,408
Five Star
Unrealized gain on investments
Amount of investment acquired	$ 6,353	$ 6,353
Weighted average costs (in dollars per share) | $ / shares		$ 1.50
Available-for-sale Securities | Five Star
Unrealized gain on investments
Investment in common shares (in shares) | shares	4,235,000	4,235,000
Loss on impairment	$ 5,082

Indebtedness (Details)

Indebtedness (Details)	Aug. 03, 2017USD ($)	Apr. 30, 2017USD ($)property	Jun. 30, 2017USD ($)propertybuildingnote	May 31, 2017USD ($)property	Apr. 30, 2017USD ($)property	Jun. 30, 2017USD ($)propertybuildingnote	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)propertybuildingnote	Jun. 30, 2016USD ($)	Dec. 31, 2014USD ($)	Aug. 02, 2017USD ($)	Jul. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Indebtedness
Number of public issues of unsecured senior notes | note			6			6		6
Principal amount of unsecured senior notes			$ 1,724,210,000			$ 1,724,210,000		$ 1,724,210,000					$ 1,722,758,000
Total real estate properties, gross			7,799,820,000			7,799,820,000		7,799,820,000					7,730,523,000
Early repayment of senior debt, unamortized premium		$ 5,449,000
Early repayment of senior debt, number of real estate properties collateralized by senior debt | property		17			17
Repayments of first mortgage bond					$ 277,837,000
Early repayment of senior debt, debt instrument, interest rate, stated percentage		6.71%			6.71%
Loss on early extinguishment of debt						7,353,000	$ 0	7,353,000	$ 6,000
Line of credit facility, periodic payment, principal								0
Unsecured revolving credit facility			434,000,000			434,000,000		434,000,000					$ 327,000,000
Unsecured revolving credit facility
Indebtedness
Unsecured revolving credit facility, maximum borrowing capacity			$ 1,000,000,000			$ 1,000,000,000		$ 1,000,000,000
Revolving credit facility, interest rate payable (as a percent)			2.50%			2.50%		2.50%
Weighted average interest rate on debt (as a percent)						2.30%	1.70%	2.20%	1.70%
Unsecured revolving credit facility			$ 434,000,000			$ 434,000,000		$ 434,000,000
Revolving credit facility, available amount			566,000,000			566,000,000		566,000,000
Interest expense and other associated costs incurred						2,662,000	$ 3,454,000	$ 5,026,000	$ 7,136,000
Unsecured revolving credit facility | LIBOR
Indebtedness
Interest rate added to the base rate (as a percent)								1.30%
Debt instrument, facility fee (as a percent)								0.30%
Unsecured revolving credit facility | Subsequent Event
Indebtedness
Unsecured revolving credit facility											$ 415,000,000
Revolving credit facility, available amount											$ 585,000,000
Option to increase the borrowing capacity under revolving credit facility	$ 2,000,000,000,000,000
Unsecured revolving credit facility | Subsequent Event | LIBOR
Indebtedness
Interest rate added to the base rate (as a percent)	1.20%
Debt instrument, facility fee (as a percent)	0.25%
Senior unsecured notes due 2019
Indebtedness
Principal amount of unsecured senior notes			$ 400,000,000			$ 400,000,000		$ 400,000,000
Interest rate (as a percent)			3.25%			3.25%		3.25%
Senior unsecured notes 6.75%
Indebtedness
Principal amount of unsecured senior notes			$ 200,000,000			$ 200,000,000		$ 200,000,000
Interest rate (as a percent)			6.75%			6.75%		6.75%
Senior unsecured notes due 2021
Indebtedness
Principal amount of unsecured senior notes			$ 300,000,000			$ 300,000,000		$ 300,000,000
Interest rate (as a percent)			6.75%			6.75%		6.75%
Senior unsecured notes 4.75%
Indebtedness
Principal amount of unsecured senior notes			$ 250,000,000			$ 250,000,000		$ 250,000,000
Senior unsecured notes due 2024
Indebtedness
Interest rate (as a percent)			4.75%			4.75%		4.75%
Senior unsecured notes 5.625% due in 2042
Indebtedness
Principal amount of unsecured senior notes			$ 350,000,000			$ 350,000,000		$ 350,000,000
Interest rate (as a percent)			5.625%			5.625%		5.625%
Senior unsecured notes 6.25% due in 2046
Indebtedness
Principal amount of unsecured senior notes			$ 250,000,000			$ 250,000,000		$ 250,000,000
Interest rate (as a percent)			6.25%			6.25%		6.25%
Term loan due 2020
Indebtedness
Interest rate (as a percent)			2.50%			2.50%		2.50%
Unsecured term loan facility										$ 350,000,000
Weighted average interest rate on debt (as a percent)						2.50%	1.90%	2.30%	1.90%
Interest expense and other associated costs incurred						$ 2,140,000	$ 1,635,000	$ 4,056,000	$ 3,249,000
Maximum borrowing capacity that may be increased			$ 700,000,000			$ 700,000,000		$ 700,000,000
Term loan due 2020 | LIBOR
Indebtedness
Interest rate added to the base rate (as a percent)										1.40%
Term loan due 2022
Indebtedness
Interest rate (as a percent)			3.00%			3.00%		3.00%
Unsecured term loan facility			$ 200,000,000			$ 200,000,000		$ 200,000,000
Weighted average interest rate on debt (as a percent)						2.90%	2.30%	2.80%	2.30%
Term loan due 2022 | LIBOR
Indebtedness
Interest rate added to the base rate (as a percent)								1.80%
Term loan due 2022 | Senior Living Communities
Indebtedness
Unsecured term loan facility														$ 200,000,000
Term loan due 2022 | Subsequent Event | LIBOR
Indebtedness
Interest rate added to the base rate (as a percent)	1.35%
Mortgages
Indebtedness
Aggregate principal amount of mortgage debt			$ 807,775,000			$ 807,775,000		$ 807,775,000
Number of properties mortgaged | property			24			24		24
Number of buildings mortgaged | building			25			25		25
Total real estate properties, gross			$ 1,232,046,000			$ 1,232,046,000		$ 1,232,046,000
Capital leases
Indebtedness
Total real estate properties, gross			$ 36,173,000			$ 36,173,000		$ 36,173,000
Number of properties recorded under capital lease | property			2			2		2
Capital leases			$ 11,022,000			$ 11,022,000		$ 11,022,000
Secured debt due August 2017
Indebtedness
Early repayment of senior debt, number of real estate properties collateralized by senior debt | property				1
Repayments of first mortgage bond				$ 10,579,000
Early repayment of senior debt, debt instrument, interest rate, stated percentage				6.15%
Secured debt due August 2037
Indebtedness
Early repayment of senior debt, number of real estate properties collateralized by senior debt | property			1			1		1
Repayments of first mortgage bond			$ 8,807,000
Early repayment of senior debt, debt instrument, interest rate, stated percentage			5.95%			5.95%		5.95%
Loss on early extinguishment of debt						$ 7,353,000		$ 7,353,000
Unsecured debt due September 2015
Indebtedness
Interest expense and other associated costs incurred						$ 1,427,000	$ 1,133,000	$ 2,725,000	$ 2,260,000
Unsecured debt | Subsequent Event
Indebtedness
Maximum borrowing capacity that may be increased												$ 400,000,000

Fair Value of Assets (Details)

Fair Value of Assets (Details) $ in Thousands	Jun. 30, 2017USD ($)shares
RMR Inc | Class A common shares
Recurring Fair Value Measurements
Investment in common shares (in shares) | shares	2,637,408
Five Star
Recurring Fair Value Measurements
Investment in common shares (in shares) | shares	4,235,000
Five Star | Common Shares
Recurring Fair Value Measurements
Investment in common shares (in shares) | shares	4,235,000
Recurring
Recurring Fair Value Measurements
Investments in available for sale securities	$ 134,662
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Recurring Fair Value Measurements
Investments in available for sale securities	134,662
Recurring | Significant Other Observable Inputs (Level 2)
Recurring Fair Value Measurements
Investments in available for sale securities	0
Recurring | Significant Unobservable Inputs (Level 3)
Recurring Fair Value Measurements
Investments in available for sale securities	$ 0

Fair Value of Liabilities (Deta

Fair Value of Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Liabilities:
Senior unsecured notes	$ 1,724,210	$ 1,722,758
Carrying Amount
Liabilities:
Senior unsecured notes	1,724,210	1,722,758
Secured debt	806,061	1,106,183
Debt instrument	2,530,271	2,828,941
Estimated Fair Value
Liabilities:
Senior unsecured notes	1,819,342	1,755,715
Secured debt	784,752	1,090,515
Debt instrument	$ 2,604,094	$ 2,846,230

Noncontrolling Interest (Detail

Noncontrolling Interest (Details)	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2017USD ($)buildingproperty	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)
Noncontrolling Interest [Line Items]
Number of properties included in joint venture agreement | property	1
Number of buildings included in joint venture agreement | building	2
Noncontrolling interest, ownership percentage by noncontrolling owners	45.00%
Noncontrolling interest, ownership percentage by parent	55.00%
Proceeds from noncontrolling interest, net	$ 255,813,000			$ 255,813,000	$ 0
Noncontrolling interest in variable interest equity	181,859,000
Adjustments to additional paid in capital, difference between net proceeds received and fair value of noncontrolling interest equity	73,954,000
Comprehensive income attributable to noncontrolling interest		$ 1,360,000	$ 0	1,486,000	0
Cash distribution for joint venture partners		3,483,000		3,483,000	$ 0
Variable interest entity, consolidated, carrying amount, real estate assets		999,346,000		999,346,000
Variable interest entity, consolidated, carrying amount, mortgage debt		$ 620,000,000		$ 620,000,000
Third Party Investor
Noncontrolling Interest [Line Items]
Noncontrolling interest, increase from business combination	$ 260,891,000

Shareholders' Equity (Details)

Shareholders' Equity (Details)	Jun. 30, 2017$ / sharesshares	May 18, 2017trustee$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares granted (in shares) | shares		3,000
Common shares granted, amount per share (in dollars per share) | $ / shares		$ 21.25
Number of trustees | trustee		5
Certain Our Officers And Employees Of RMR LLC
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares purchased to satisfy tax withholding and payment obligations (in shares) | shares	516
Shares purchased to satisfy tax withholding and payment obligations, price per share (in dollars per share) | $ / shares	$ 20.44

Shareholder's Equity - Distribu

Shareholder's Equity - Distribution to Common Shareholders (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 17, 2017	Jul. 12, 2017	May 18, 2017	Feb. 21, 2017	Jun. 30, 2017	Jun. 30, 2016
Dividends Payable [Line Items]
Distribution to common shareholders (in dollars per share)			$ 0.39	$ 0.39
Distribution to common shareholders			$ 92,642	$ 92,642	$ 185,284	$ 185,228
Subsequent Event
Dividends Payable [Line Items]
Distribution to common shareholders declared per share (in dollars per share)		$ 0.39
Distribution to common shareholders payable		$ 92,648
Scenario, Forecast
Dividends Payable [Line Items]
Distribution to common shareholders	$ 92,660
Distribution to common shareholders declared per share (in dollars per share)	$ 0.39

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)segment	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment			4
Number of reportable segments | segment			3
Revenues:
Rental income	$ 166,647	$ 163,997	$ 333,090	$ 325,419
Residents fees and services	98,366	97,370	196,484	194,323
Total revenues	265,013	261,367	529,574	519,742
Expenses:
Property operating expenses	102,795	97,474	203,851	195,422
Depreciation and amortization	69,669	71,372	142,844	142,594
General and administrative	22,922	11,965	38,005	22,828
Acquisition and certain other transaction related costs	0	180	292	619
Impairment of assets	5,082	4,961	5,082	12,351
Total expenses	200,468	185,952	390,074	373,814
Operating income	64,545	75,415	139,500	145,928
Dividend income	659	789	1,319	789
Interest and other income	76	177	195	242
Interest expense	(40,800)	(41,118)	(84,289)	(80,399)
Loss on early extinguishment of debt	(7,353)	0	(7,353)	(6)
Income from continuing operations before income tax expense and equity in earnings of an investee	17,127	35,263	49,372	66,554
Income tax expense	(99)	(108)	(191)	(202)
Equity in earnings of an investee	374	17	502	94
Net income	17,402	39,233	49,683	70,507
Income before gain on sale of properties	17,402	35,172	49,683	66,446
Gain on sale of properties	0	4,061	0	4,061
Net income attributable to noncontrolling interest	(1,360)	0	(1,486)	0
Net income attributable to common shareholders	16,042	39,233	48,197	70,507
Total assets	7,183,620		7,183,620		$ 7,227,754
Triple Net Leased Senior Living Communities
Revenues:
Rental income	67,426	66,441	134,678	131,749
Residents fees and services	0	0	0	0
Total revenues	67,426	66,441	134,678	131,749
Expenses:
Property operating expenses	0	423	0	786
Depreciation and amortization	20,470	19,273	40,804	38,674
General and administrative	0	0	0	0
Acquisition and certain other transaction related costs		0	0	0
Impairment of assets	0	0	0	4,391
Total expenses	20,470	19,696	40,804	43,851
Operating income	46,956	46,745	93,874	87,898
Dividend income	0	0	0	0
Interest and other income	0	0	0	0
Interest expense	(2,211)	(6,282)	(7,550)	(12,665)
Loss on early extinguishment of debt	(7,294)		(7,294)	0
Income from continuing operations before income tax expense and equity in earnings of an investee	37,451	40,463	79,030	75,233
Income tax expense	0	0	0	0
Equity in earnings of an investee	0	0	0	0
Net income	37,451		79,030
Income before gain on sale of properties		40,463		75,233
Gain on sale of properties		4,061		4,061
Net income attributable to noncontrolling interest	0		0
Net income attributable to common shareholders	37,451	44,524	79,030	79,294
Total assets	2,276,979		2,276,979		2,289,045
Managed Senior Living Communities
Revenues:
Rental income	0	0	0	0
Residents fees and services	98,366	97,370	196,484	194,323
Total revenues	98,366	97,370	196,484	194,323
Expenses:
Property operating expenses	75,149	71,642	149,028	143,820
Depreciation and amortization	16,390	20,140	36,605	40,158
General and administrative	0	0	0	0
Acquisition and certain other transaction related costs		0	0	0
Impairment of assets	0	0	0	0
Total expenses	91,539	91,782	185,633	183,978
Operating income	6,827	5,588	10,851	10,345
Dividend income	0	0	0	0
Interest and other income	0	0	0	0
Interest expense	(1,176)	(2,663)	(2,352)	(5,227)
Loss on early extinguishment of debt	0		0	(6)
Income from continuing operations before income tax expense and equity in earnings of an investee	5,651	2,925	8,499	5,112
Income tax expense	0	0	0	0
Equity in earnings of an investee	0	0	0	0
Net income	5,651		8,499
Income before gain on sale of properties		2,925		5,112
Gain on sale of properties		0		0
Net income attributable to noncontrolling interest	0		0
Net income attributable to common shareholders	5,651	2,925	8,499	5,112
Total assets	1,238,723		1,238,723		1,260,032
MOBs
Revenues:
Rental income	94,651	92,978	189,297	184,559
Residents fees and services	0	0	0	0
Total revenues	94,651	92,978	189,297	184,559
Expenses:
Property operating expenses	27,646	25,409	54,823	50,816
Depreciation and amortization	31,861	31,011	63,539	61,866
General and administrative	0	0	0	0
Acquisition and certain other transaction related costs		0	0	0
Impairment of assets	0	4,961	0	7,960
Total expenses	59,507	61,381	118,362	120,642
Operating income	35,144	31,597	70,935	63,917
Dividend income	0	0	0	0
Interest and other income	0	0	0	0
Interest expense	(6,250)	(844)	(12,570)	(1,798)
Loss on early extinguishment of debt	(59)		(59)	0
Income from continuing operations before income tax expense and equity in earnings of an investee	28,835	30,753	58,306	62,119
Income tax expense	0	0	0	0
Equity in earnings of an investee	0	0	0	0
Net income	28,835		58,306
Income before gain on sale of properties		30,753		62,119
Gain on sale of properties		0		0
Net income attributable to noncontrolling interest	(1,360)		(1,486)
Net income attributable to common shareholders	27,475	30,753	56,820	62,119
Total assets	3,309,089		3,309,089		3,333,141
All Other Operations
Revenues:
Rental income	4,570	4,578	9,115	9,111
Residents fees and services	0	0	0	0
Total revenues	4,570	4,578	9,115	9,111
Expenses:
Property operating expenses	0	0	0	0
Depreciation and amortization	948	948	1,896	1,896
General and administrative	22,922	11,965	38,005	22,828
Acquisition and certain other transaction related costs		180	292	619
Impairment of assets	5,082	0	5,082	0
Total expenses	28,952	13,093	45,275	25,343
Operating income	(24,382)	(8,515)	(36,160)	(16,232)
Dividend income	659	789	1,319	789
Interest and other income	76	177	195	242
Interest expense	(31,163)	(31,329)	(61,817)	(60,709)
Loss on early extinguishment of debt	0		0	0
Income from continuing operations before income tax expense and equity in earnings of an investee	(54,810)	(38,878)	(96,463)	(75,910)
Income tax expense	(99)	(108)	(191)	(202)
Equity in earnings of an investee	374	17	502	94
Net income	(54,535)		(96,152)
Income before gain on sale of properties		(38,969)		(76,018)
Gain on sale of properties		0		0
Net income attributable to noncontrolling interest	0		0
Net income attributable to common shareholders	(54,535)	$ (38,969)	(96,152)	$ (76,018)
Total assets	$ 358,829		$ 358,829		$ 345,536

Leases and Management Agreeme36

Leases and Management Agreements with Five Star (Details) $ in Thousands	Jun. 29, 2016community	Jun. 30, 2016USD ($)pooling_agreementlease_agreementcommunity	Jun. 30, 2017USD ($)community	Jun. 30, 2016USD ($)community	Jun. 30, 2017USD ($)lease_agreementcommunity	Jun. 30, 2016USD ($)community	Dec. 31, 2016USD ($)	May 31, 2015
Related party transaction, property management agreement, number of communities subject to reset of annual minimum return | community		10		10		10
Five Star
Number of communities leased by the Company | community		184	185	184	185	184
Number of leases with related party | lease_agreement					5
Total rental income recognized			$ 51,123	$ 48,234	$ 102,108	$ 96,341
Related party transaction, annual rents due			1,392	1,388	2,837	2,861
Rents receivable			$ 17,044		17,044		$ 18,320
Real estate improvements purchased					19,308	11,836
Increase or decrease in annual lease rent payable					$ 1,547	949
Number of communities included in expansion and development project | community			2		2
Related party transaction, annual rent increase percentage in addition to rate applicable on outstanding borrowings			2.00%		2.00%
Property management agreement expense			$ 3,554	$ 2,819	$ 7,117	$ 5,623
Number of pre-existing management agreements terminated | pooling_agreement		3
Number of pre-existing management agreements | lease_agreement		4
Five Star | Rents from significant lessee | Revenues
% of Total (as a percent)			19.30%		19.30%
Five Star | Rents from significant lessee | Investment
% of Total (as a percent)					27.50%
Five Star | A L Pooling Agreements
Related party transaction, property management agreement, management fees as percentage of gross revenues	5.00%							3.00%
Related party transaction property management agreement, payment of capital expenditure as percentage of the funded amount		0.03		0.03		0.03
Related party transaction, property management agreement, incentive fee as percentage of annual net operating income after realization of specified percentage of annual return	20.00%							35.00%
Five Star | A L Pooling Agreements | Minimum
Related party transaction, property management agreement, management fees as percentage of gross revenues		3.00%		3.00%		3.00%
Five Star | A L Pooling Agreements | Maximum
Related party transaction, property management agreement, management fees as percentage of gross revenues		5.00%		5.00%		5.00%
Five Star | Senior Living Communities
Number of communities managed by related party | community					68	62
Number of separate management agreements | pooling_agreement		10
Five Star | Senior Living Communities | Four States
Number of properties acquired | community	7
Real estate aggregate purchase price		$ 112,350

Business and Property Managem37

Business and Property Management Agreements with RMR LLC (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)employee	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)propertyemployeemanagement_agreement	Jun. 30, 2016USD ($)
Related person transactions
Number of employees | employee	0		0
Property management and construction supervision fees	$ 2,708	$ 2,686	$ 4,888	$ 5,232
Property management and construction supervision fees paid	2,383	2,171	4,763	4,299
Professional fees	67	67	134	134
RMR LLC
Related person transactions
Related party transaction business management fees related to subsidiary level management	20,431		33,212
Business management fees incurred		$ 9,243		$ 17,590
Related party transaction amortization of liability	725		787
Related party transaction business management agreement, incentive fee paid	$ 10,760		$ 14,026
Related party transaction, incentive fee payable assessment period			3 years
Senior Living Communities | RMR Inc
Related person transactions
Number of consecutive renewal terms of agreement | management_agreement			2
Number of communities managed by related party | property			1

Related Person Transactions - F

Related Person Transactions - Five Star (Details) - Five Star	Jun. 30, 2017shares
Related person transactions
Investment in common shares (in shares)	4,235,000
Investment owned, percentage of total shares outstanding	8.50%
RMR LLC
Related person transactions
Investment owned, percentage of total shares outstanding	36.70%

Related Person Transactions - I

Related Person Transactions - Investment in RMR Inc (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017USD ($)buildingshares	Jun. 30, 2018USD ($)	Dec. 31, 2016USD ($)
RMR Inc | Class A common shares
Related person transactions
Number of shares purchased (in shares) | shares	2,637,408
AIC
Related person transactions
Property insurance term	1 year
Number of buildings covered by property insurance | building	2
Equity method investments	$ 7,798		$ 7,116
Scenario, Forecast | AIC
Related person transactions
Equity method investments, property insurance annual premium amount		$ 2,453

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Components of provision for income taxes
Income tax expense (benefit)	$ 99	$ 108	$ 191	$ 202

Weighted Average Common Share41

Weighted Average Common Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Weighted average common shares for basic earnings per share	237,399	237,325	237,395	237,320
Effect of dilutive securities: unvested share awards	46	38	38	29
Weighted average common shares for diluted earnings per share	237,445	237,363	237,433	237,349