Office Properties Income Trust (OPI) 10-Q1 Aug 172017 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2017	Jul. 31, 2017
Document and Entity Information
Entity Registrant Name	Government Properties Income Trust
Entity Central Index Key	1,456,772
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		96,195,178
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	$ 269,410	$ 267,855
Buildings and improvements	1,652,535	1,620,905
Total real estate properties, gross	1,921,945	1,888,760
Accumulated depreciation	(320,005)	(296,804)
Total real estate properties, net	1,601,940	1,591,956
Equity investment in Select Income REIT	477,233	487,708
Assets of discontinued operations	12,534	12,541
Acquired real estate leases, net	108,927	124,848
Cash and cash equivalents	12,907	29,941
Restricted cash	344	530
Rents receivable, net	47,717	48,458
Deferred leasing costs, net	21,251	21,079
Other assets, net	82,256	68,005
Total assets	2,365,109	2,385,066
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unsecured revolving credit facility	155,000	160,000
Unsecured term loans, net	547,511	547,171
Senior unsecured notes, net	647,584	646,844
Mortgage notes payable, net	26,991	27,837
Liabilities of discontinued operations	81	45
Accounts payable and other liabilities	64,479	54,019
Due to related persons	5,361	3,520
Assumed real estate lease obligations, net	9,423	10,626
Total liabilities	1,456,430	1,450,062
Commitments and contingencies
Shareholders’ equity:
Common shares of beneficial interest, $.01 par value: 150,000,000 and 100,000,000 shares authorized, 71,195,178 and 71,177,906 shares issued and outstanding, respectively	712	712
Additional paid in capital	1,473,936	1,473,533
Cumulative net income	115,420	96,329
Cumulative other comprehensive income	42,350	26,957
Cumulative common distributions	(723,739)	(662,527)
Total shareholders’ equity	908,679	935,004
Total liabilities and shareholders’ equity	$ 2,365,109	$ 2,385,066

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)	150,000,000	100,000,000
Common shares of beneficial interest, shares issued (in shares)	71,195,178	71,177,906
Common shares of beneficial interest, shares outstanding (in shares)	71,195,178	71,177,906

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Rental income	$ 69,887	$ 64,061	$ 139,183	$ 127,672
Expenses:
Real estate taxes	7,941	7,566	16,118	15,219
Utility expenses	4,172	3,673	8,778	7,847
Other operating expenses	15,187	13,266	29,179	26,177
Depreciation and amortization	20,663	17,985	41,168	36,309
Acquisition related costs	0	64	0	216
General and administrative	5,086	4,008	9,048	7,534
Total expenses	53,049	46,562	104,291	93,302
Operating income	16,838	17,499	34,892	34,370
Dividend income	303	363	607	363
Interest income	67	10	128	16
Interest expense (including net amortization of debt premiums and discounts and debt issuance costs of $808, $747, $1,615 and $1,219, respectively)	(13,963)	(10,314)	(27,544)	(19,678)
Gain on early extinguishment of debt	0	0	0	104
Gain on issuance of shares by Select Income REIT	21	16	21	16
Income from continuing operations before income taxes and equity in earnings of investees	3,266	7,574	8,104	15,191
Income tax expense	(25)	(35)	(43)	(50)
Equity in earnings of investees	8,581	9,400	11,320	19,334
Income from continuing operations	11,822	16,939	19,381	34,475
Loss from discontinued operations	(145)	(126)	(289)	(275)
Net income	11,677	16,813	19,092	34,200
Other comprehensive income:
Unrealized gain (loss) on investment in available for sale securities	(1,032)	7,237	11,110	20,108
Equity in unrealized gain (loss) of investees	(332)	2,606	4,283	7,150
Other comprehensive income (loss)	(1,364)	9,843	15,393	27,258
Comprehensive income	$ 10,313	$ 26,656	$ 34,485	$ 61,458
Weighted average common shares outstanding (basic) (in shares)	71,088	71,038	71,083	71,034
Weighted average common shares outstanding (diluted) (in shares)	71,119	71,061	71,109	71,046
Per common share amounts (basic and diluted):
Income from continuing operations (in dollars per share)	$ 0.17	$ 0.24	$ 0.27	$ 0.49
Loss from discontinued operations (in dollars per share)	0	0	0	0
Net income (in dollars per share)	$ 0.16	$ 0.24	$ 0.27	$ 0.48

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Net amortization of debt premiums and discounts and deferred financing fees	$ 808	$ 747	$ 1,615	$ 1,219

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 19,092	$ 34,200
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	23,398	20,781
Net amortization of debt premiums and discounts and debt issuance costs	1,615	1,219
Gain on early extinguishment of debt	0	(104)
Straight line rental income	(2,404)	(584)
Amortization of acquired real estate leases	17,209	14,842
Amortization of deferred leasing costs	1,797	1,475
Other non-cash expenses (income), net	193	302
Equity in earnings of investees	(11,320)	(19,334)
Gain on issuance of shares by Select Income REIT	(21)	(16)
Distributions of earnings from Select Income REIT	9,345	17,760
Change in assets and liabilities:
Restricted cash	186	678
Deferred leasing costs	(2,087)	(3,409)
Rents receivable	2,872	1,428
Other assets	(3,071)	1,120
Accounts payable and accrued expenses	9,871	971
Due to related persons	1,841	692
Net cash provided by operating activities	68,516	72,021
CASH FLOWS FROM INVESTING ACTIVITIES:
Real estate acquisitions and deposits	(12,648)	(79,285)
Real estate improvements	(21,996)	(14,149)
Distributions in excess of earnings from Select Income REIT	16,072	7,158
Net cash used in investing activities	(18,572)	(86,276)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of mortgage notes payable	(761)	(107,202)
Proceeds from issuance of senior notes	0	310,000
Borrowings on unsecured revolving credit facility	45,000	229,000
Repayments on unsecured revolving credit facility	(50,000)	(346,000)
Payment of debt issuance costs	0	(10,138)
Repurchase of common shares	(5)	0
Distributions to common shareholders	(61,212)	(61,169)
Net cash (used in) provided by financing activities	(66,978)	14,491
Increase (decrease) in cash and cash equivalents	(17,034)	236
Cash and cash equivalents at beginning of period	29,941	8,785
Cash and cash equivalents at end of period	12,907	9,021
Supplemental cash flow information:
Interest paid	25,747	17,343
Income taxes paid	$ 82	$ 76

Basis of Presentation

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of Government Properties Income Trust and its subsidiaries, or GOV, 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. Our operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. Reclassifications have been made to the prior years’ condensed consolidated financial statements to conform to the current year’s presentation. The preparation of these 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 the condensed consolidated financial statements include purchase price allocations, useful lives of fixed assets, impairment of real estate and equity method investments and the valuation of intangible assets.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
Recent Accounting Pronouncements	Jun. 30, 2017
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements On January 1, 2017, we adopted the Financial Accounting Standards Board, or FASB, Accounting Standards Update, or ASU, No. 2017-01, Clarifying the Definition of a Business , which 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 the 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 condensed 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, 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 consolidated financial statements with the exception of profit recognition on real estate sales. We currently have recorded a deferred gain on sale of real estate of $712 that under current guidance would be recognized upon repayment of a promissory note we received in connection with the sale but will be recognized in its entirety upon adoption of ASU No. 2014-09. 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.

Weighted Average Common Shares

Weighted Average Common Shares	6 Months Ended
Weighted Average Common Shares	Jun. 30, 2017
Earnings Per Share, Basic and Diluted [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): For the Three Months For the Six Months Ended June 30, Ended June 30, 2017 2016 2017 2016 Weighted average common shares for basic earnings per share 71,088 71,038 71,083 71,034 Effect of dilutive securities: unvested share awards 31 23 26 12 Weighted average common shares for diluted earnings per share 71,119 71,061 71,109 71,046

Real Estate Properties

Real Estate Properties	6 Months Ended
Real Estate Properties	Jun. 30, 2017
Real Estate [Abstract]
Real Estate Properties	Real Estate Properties As of June 30, 2017 , we owned 74 properties ( 96 buildings), with an undepreciated carrying value of $1,921,945 , excluding one property ( one building) classified as discontinued operations with an undepreciated carrying value of $12,259 . We generally lease space at our properties on a gross lease or modified gross lease basis pursuant to fixed term contracts expiring between 2017 and 2032. Our leases generally require us to pay all or some property operating expenses and to provide all or most property management services. During the three months ended June 30, 2017 , we entered into 16 leases for 288,428 rentable square feet, for a weighted (by rentable square feet) average lease term of 7.2 years and we made commitments for $2,465 of leasing related costs. During the six months ended June 30, 2017 , we entered into 28 leases for 648,531 rentable square feet, for a weighted (by rentable square feet) average lease term of 9.1 years and we made commitments for $4,706 of leasing related costs. As of June 30, 2017 , we have estimated unspent leasing related obligations of $24,873 , and we have committed to redevelop and expand an existing property prior to commencement of the lease with an estimated remaining cost to complete as of June 30, 2017 of $5,503 . During the six months ended June 30, 2017 , we capitalized $172 of interest expense related to the redevelopment and expansion of that existing property. Acquisition Activities During the six months ended June 30, 2017 , we acquired an office property ( one building) located in Manassas, VA with 69,374 rentable square feet. This property was 100% leased to Prince William County on the date of acquisition. This transaction was accounted for as an acquisition of assets. The purchase price was $12,648 , including capitalized acquisition costs of $28 . Our allocation of the purchase price of this acquisition based on the estimated fair values of the acquired assets and assumed liabilities is presented in the table below. Number of Buildings Other Acquisition Properties/ Square Purchase and Assumed Date Location Type Buildings Feet Price Land Improvements Assets Jan-17 Manassas, VA Office 1/1 69,374 $ 12,648 $ 1,562 $ 8,244 $ 2,842 In June 2017, we and two of our wholly owned subsidiaries entered a definitive Agreement and Plan of Merger, or the Merger Agreement, to acquire First Potomac Realty Trust, a Maryland REIT, or FPO, and its operating partnership First Potomac Realty Investment Limited Partnership, or FPO LP. The transactions contemplated by the Merger Agreement are collectively referred to herein as the FPO Transaction. Pursuant to the terms and subject to the conditions and limitations set forth in the Merger Agreement: (i) at the effective time of the REIT Merger, or the REIT Merger Effective Time, each of the common shares of beneficial interest of FPO, par value $0.001 per share, or FPO Common Shares, issued and outstanding immediately prior to the REIT Merger Effective Time will be converted into the right to receive an amount equal to $11.15 in cash, without interest, or the REIT Per Share Merger Consideration; and (ii) at the effective time of the Partnership Merger, or the Partnership Merger Effective Time, each unit of limited partnership interests in FPO LP issued and outstanding immediately prior to the Partnership Merger Effective Time will be converted into the right to receive an amount in cash equal to the REIT Per Share Merger Consideration, without interest, or the Partnership Per Unit Merger Consideration, except that each holder of FPO LP limited partnership interests may elect, in lieu of the Partnership Per Unit Merger Consideration, to have such holder’s units of limited partnership interests in FPO LP converted into an equal number of units of preferred limited partnership interests in the surviving limited partnership. The FPO Transaction is subject to approval by the holders of at least a majority of the outstanding FPO Common Shares, and each party’s obligation to consummate the FPO Transaction is subject to certain other customary conditions provided for in the Merger Agreement. We currently expect the FPO Transaction to close prior to December 31, 2017; however, some of the closing conditions may be delayed or may not be satisfied, accordingly, the FPO Transaction may not close by year end December 31, 2017 or at all, or the terms of the FPO Transaction may change. As part of the FPO Transaction, we will acquire FPO's full property portfolio, which includes 39 office and industrial properties ( 74 buildings) with 6,454,382 rentable square feet, including two joint venture properties which are 50% and 51% owned by FPO. The estimated total consideration for the FPO Transaction is approximately $1,387,265 , including the expected payment of $11.15 per FPO common share outstanding, or approximately $683,372 , the expected repayment of approximately $417,800 of FPO debt, the expected assumption of approximately $231,360 of FPO mortgage debt and the payment of estimated transaction fees and expenses. In August 2016, we entered an agreement to acquire transferable development rights that would allow us to expand a property we own in Washington, D.C. for a purchase price of $2,030 , excluding acquisition costs. This acquisition is subject to conditions; accordingly, this acquisition may be delayed, its terms may change or it may not be consummated. We regularly evaluate whether events or changes in circumstances have occurred that could indicate an impairment in the value of our long lived assets. If there is an indication that the carrying value of an asset is not recoverable, we estimate the projected undiscounted cash flows to determine if an impairment loss should be recognized. We determine the amount of any impairment loss by comparing the historical carrying value to estimated fair value. We estimate fair value through an evaluation of recent financial performance and projected discounted cash flows using standard industry valuation techniques. In addition to consideration of impairment upon the events or changes in circumstances described above, we regularly evaluate the remaining lives of our long lived assets. If we change our estimate of the remaining lives, we allocate the carrying value of the affected assets over their revised remaining lives. Disposition Activities – Discontinued Operations In March 2016, we entered an agreement to sell an office property ( one building) in Falls Church, VA with 164,746 rentable square feet and a net book value of $12,282 at June 30, 2017 . We agreed to extend the closing date for this sale and increased the sale price by $225 , which we received as a non-refundable deposit. The contract sale price is now $13,523 , excluding closing costs and we expect this transaction to close in the third quarter of 2017. This sale is subject to conditions; accordingly, this sale may be delayed, its terms may change or it may not be consummated. Results of operations for this property, which qualified as held for sale prior to our adoption in 2014 of ASU No. 2014-8, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity , are classified as discontinued operations in our condensed consolidated financial statements. Summarized balance sheet and income statement information for this property is as follows: Balance Sheets June 30, December 31, 2017 2016 Real estate properties, net $ 12,259 $ 12,260 Other assets 275 281 Assets of discontinued operations $ 12,534 $ 12,541 Other liabilities $ 81 $ 45 Liabilities of discontinued operations $ 81 $ 45 Statements of Operations Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Rental income $ 5 $ 28 $ 12 $ 56 Real estate taxes (25 ) (23 ) (49 ) (46 ) Utility expenses (34 ) (29 ) (80 ) (79 ) Other operating expenses (62 ) (73 ) (115 ) (149 ) General and administrative (29 ) (29 ) (57 ) (57 ) Loss from discontinued operations $ (145 ) $ (126 ) $ (289 ) $ (275 )

Revenue Recognition

Revenue Recognition	6 Months Ended
Revenue Recognition	Jun. 30, 2017
Revenue Recognition [Abstract]
Revenue Recognition	Revenue Recognition We recognize rental income from operating leases that contain fixed contractual rent changes on a straight line basis over the term of the lease agreements. Certain of our leases with government tenants provide the tenant the right to terminate before the lease expiration date if the legislature or other funding authority does not appropriate the funding necessary for the government tenant to meet its lease obligations; we have determined the fixed non-cancelable lease term of these leases to be the fully executed term of the lease because we believe the occurrence of early terminations to be remote contingencies based on both our historical experience and our assessments of the likelihood of lease cancellation on a separate lease basis. We increased rental income to record revenue on a straight line basis by $1,104 and $435 for the three months ended June 30, 2017 and 2016 , respectively, and $2,404 and $584 for the six months ended June 30, 2017 and 2016 , respectively. Rents receivable include $24,090 and $21,686 of straight line rent receivables, net of allowance for doubtful accounts of $148 and $155 , at June 30, 2017 and December 31, 2016 , respectively.

Concentration

Concentration	6 Months Ended
Concentration	Jun. 30, 2017
Risks and Uncertainties [Abstract]
Concentration	Concentration Tenant and Credit Concentration We define annualized rental income as the annualized contractual base rents from our tenants pursuant to our lease agreements as of the measurement date, plus straight line rent adjustments and estimated recurring expense reimbursements to be paid to us, and excluding lease value amortization. The U.S. Government, 13 state governments, and four other government tenants combined were responsible for 87.6% and 92.7% of our annualized rental income, excluding one property ( one building) classified as discontinued operations, as of June 30, 2017 and 2016 , respectively. The U.S. Government is our largest tenant by annualized rental income and was responsible for 59.6% and 64.1% of our annualized rental income, excluding one property classified as discontinued operations, as of June 30, 2017 and 2016 , respectively. Geographic Concentration At June 30, 2017 , our 74 properties ( 96 buildings), excluding one property ( one building) classified as discontinued operations, were located in 31 states and the District of Columbia. Properties located in Virginia, California, the District of Columbia, Georgia, New York, Maryland and Massachusetts were responsible for 14.8% , 14.8% , 9.5% , 8.6% , 7.2% , 7.0% and 4.9% of our annualized rental income as of June 30, 2017 , respectively.

Indebtedness

Indebtedness	6 Months Ended
Indebtedness	Jun. 30, 2017
Debt Disclosure [Abstract]
Indebtedness	Indebtedness Our principal debt obligations at June 30, 2017 were: (1) $155,000 of outstanding borrowings under our $750,000 unsecured revolving credit facility; (2) an aggregate outstanding principal amount of $550,000 of unsecured term loans; (3) an aggregate outstanding principal amount of $660,000 of public issuances of senior unsecured notes; and (4) $26,747 aggregate principal amount of mortgage notes. Our $750,000 revolving credit facility, our $300,000 term loan and our $250,000 term loan are governed by a credit agreement with a syndicate of institutional lenders that includes a number of features common to all of these credit arrangements. This credit agreement also includes a feature under which the maximum aggregate borrowing availability may be increased to up to $2,500,000 on a combined basis in certain circumstances. Our $750,000 revolving credit facility is available for general business purposes, including acquisitions. The maturity date of our revolving credit facility is January 31, 2019 and, subject to the payment of an extension fee and meeting other conditions, we have an option to extend the stated maturity date of our revolving credit facility by one year to January 31, 2020. We can borrow, repay and reborrow funds available under our revolving credit facility until maturity and no principal repayment is due until maturity. We are required to pay interest at a rate of LIBOR plus a premium, which was 125 basis points per annum at June 30, 2017 , on borrowings under our revolving credit facility. We also pay a facility fee on the total amount of lending commitments under our revolving credit facility, which was 25 basis points per annum at June 30, 2017 . Both the interest rate premium and the facility fee are subject to adjustment based upon changes to our credit ratings. As of June 30, 2017 , the annual interest rate payable on borrowings under our revolving credit facility was 2.4% and the weighted average annual interest rate for borrowings under our revolving credit facility was 2.2% and 1.7% for the three months ended June 30, 2017 and 2016 , respectively, and 2.1% and 1.7% for the six months ended June 30, 2017 and 2016 , respectively. As of June 30, 2017 and July 31, 2017 , we had $155,000 and zero outstanding under our revolving credit facility, respectively. Our $300,000 term loan, which matures on March 31, 2020, is prepayable without penalty at any time. We are required to pay interest at a rate of LIBOR plus a premium, which was 140 basis points per annum at June 30, 2017 , on the amount outstanding under our $300,000 term loan. The interest rate premium is subject to adjustment based upon changes to our credit ratings. As of June 30, 2017 , the annual interest rate for the amount outstanding under our $300,000 term loan was 2.6% . The weighted average annual interest rate under our $300,000 term loan was 2.4% and 1.8% for the three months ended June 30, 2017 and 2016 , respectively, and 2.3% and 1.8% for the six months ended June 30, 2017 and 2016 , respectively. Our $250,000 term loan, which matures on March 31, 2022, is prepayable without penalty at any time. We are required to pay interest at a rate of LIBOR plus a premium, which was 180 basis points per annum as of June 30, 2017 , on the amount outstanding under our $250,000 term loan. The interest rate premium is subject to adjustment based upon changes to our credit ratings. As of June 30, 2017 , the annual interest rate for the amount outstanding under our $250,000 term loan was 3.0% . The weighted average annual interest rate under our $250,000 term loan was 2.8% and 2.2% , respectively, for the three months ended June 30, 2017 and 2016 and 2.7% and 2.2% for the six months ended June 30, 2017 and 2016 , respectively. Our credit agreement and senior 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 credit agreement, a change of control of us, which includes The RMR Group LLC, or RMR LLC, ceasing to act as our business and property manager. Our credit agreement and our senior notes indentures and their supplements also contain a number of covenants, including covenants that restrict our ability to incur debts, require us to maintain certain financial ratios and, in the case of our credit agreement, 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 credit agreement and senior notes indentures and their supplements at June 30, 2017 . At June 30, 2017 , three of our properties ( three buildings) with an aggregate net book value of $50,825 are encumbered by three mortgages for an aggregate principal amount of $26,747 . Our mortgage notes are non-recourse, subject to certain limited exceptions and do not contain any material financial covenants. On July 20, 2017, we issued $300,000 of 4.000% senior unsecured notes due 2022 in an underwritten public offering. The net proceeds from this offering of $295,404 , after payment of the underwriters' discount and other offering expenses, are expected to finance, in part, the FPO Transaction. In the event the FPO Transaction is not consummated on or prior to December 31, 2017, or the Merger Agreement is terminated on or at any time prior to that date, we will be required to redeem these notes at 101% of the principal amount of such notes plus accrued and unpaid interest. Concurrently with the execution of the Merger Agreement, we entered a commitment letter, or the Commitment Letter, with a group of institutional lenders for a 364 -day senior unsecured bridge loan facility in an initial aggregate principal amount of up to $750,000 , or the Bridge Loan Facility. On July 20, 2017, we and the lenders terminated the Commitment Letter and the Bridge Loan Facility as a result of our issuance of senior unsecured notes described above and proceeds from the sale of our common shares in July 2017 (see Note 9 for more information regarding this sale) and we recognized a loss on extinguishment of debt of $1,655 at that time which will be reported in the third quarter of 2017 in connection with that termination.

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	6 Months Ended
Fair Value of Assets and Liabilities	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: Fair Value at Reporting Date Using Quoted Prices in Significant Estimated Active Markets for Significant Other Unobservable Fair Identical Assets Observable Inputs Inputs Description Value (Level 1) (Level 2) (Level 3) Recurring Fair Value Measurements Assets: Investment in RMR Inc. (1) $ 59,072 $ 59,072 $ — $ — Non-Recurring Fair Value Measurements Assets: Property held for sale and classified as discontinued operations (2) $ 12,259 $ — $ — $ 12,259 (1) Our 1,214,225 shares of class A common stock of The RMR Group Inc., or RMR Inc., which are included in other assets in our condensed consolidated balance sheets, are reported at fair value which is based on quoted market prices (Level 1 inputs). Our historical cost basis for these shares is $26,888 as of June 30, 2017 . The net unrealized gain of $32,184 for these shares as of June 30, 2017 is included in cumulative other comprehensive income in our condensed consolidated balance sheets. (2) We estimated the fair value of this property at June 30, 2017 based upon broker estimates of value less estimated sale costs (Level 3 inputs as defined in the fair value hierarchy under GAAP). In addition to the assets described in the table above, our financial instruments include cash and cash equivalents, restricted cash, rents receivable, mortgage notes receivable, accounts payable, a revolving credit facility, term loans, senior unsecured notes, mortgage notes payable, amounts due to related persons, other accrued expenses and security deposits. At June 30, 2017 and December 31, 2016 , the fair values of our financial instruments approximated their carrying values in our condensed consolidated financial statements due to their short term nature or variable interest rates, except as follows: As of June 30, 2017 As of December 31, 2016 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Senior unsecured notes, 3.75% interest rate, due in 2019 $ 347,524 $ 353,386 $ 346,952 $ 354,078 Senior unsecured notes, 5.875% interest rate, due in 2046 300,060 321,036 299,892 292,268 Mortgage note payable, 5.88% interest rate, due in 2021 (2) 13,731 14,528 13,841 14,492 Mortgage note payable, 7.00% interest rate, due in 2019 (2) 8,587 8,902 8,778 9,188 Mortgage note payable, 8.15% interest rate, due in 2021 (2) 4,673 4,988 5,218 5,575 $ 674,575 $ 702,840 $ 674,681 $ 675,601 (1) Carrying amount includes certain unamortized debt issuance costs and unamortized premiums and discounts. (2) We assumed these mortgages in connection with our acquisitions of the encumbered properties. The stated interest rates for these mortgage debts are the contractually stated rates. We recorded the assumed mortgages at estimated fair value on the date of acquisition and we are amortizing the fair value premiums, if any, to interest expense over the respective terms of the mortgages to reduce interest expense to the estimated market interest rates as of the date of acquisition. We estimated the fair value of our senior unsecured notes due 2019 using an average of the bid and ask price of the notes as of the measurement date (Level 2 inputs as defined in the fair value hierarchy under GAAP). We estimated the fair value of our senior unsecured notes due 2046 based on the closing price on The NASDAQ Stock Market LLC, or Nasdaq, (Level 1 inputs as defined in the fair value hierarchy under GAAP) as of the measurement date. We estimated the fair values of our mortgage notes payable by using discounted cash flow 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.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
Shareholders' Equity	Jun. 30, 2017
Equity [Abstract]
Shareholders' Equity	Shareholders’ Equity Distributions On February 23, 2017 , we paid a regular quarterly distribution to common shareholders of record on January 23, 2017 of $0.43 per share, or $30,606 . On May 22, 2017 , we paid a regular quarterly distribution to common shareholders of record on April 21, 2017 of $0.43 per share, or $30,606 . On July 12, 2017 , we declared a regular quarterly distribution payable to common shareholders of record on July 24, 2017 of $0.43 per share, or $41,364 . We expect to pay this distribution on or about August 21, 2017 using cash on hand. Sale of Shares On July 5, 2017, we sold 25,000,000 of our common shares at a price of $18.50 per share in an underwritten public offering. In connection with this offering, we granted the underwriters a 30 day option to purchase up to an additional 3,750,000 of our common shares at a price of $18.50 per share. On July 28, 2017, the underwriters partially exercised this purchase option for 2,907,029 of our common shares. This purchase is expected to be completed on August 3, 2017. The aggregate net proceeds from these sales will be $493,838 , after payment of the underwriters' discount and other offering expenses. Share Grants and Purchases On May 17, 2017 , we granted 3,000 of our common shares, valued at $21.75 per share, the closing price of our common shares on the Nasdaq on that day, to each of our six Trustees as part of their annual compensation. On May 17, 2017 , we withheld 450 of our common shares awarded to one of our Trustees to fund that Trustee's resulting minimum required tax withholding obligation. The aggregate value of the withheld shares was $10 , which is reflected as a decrease to shareholders equity in our condensed consolidated balance sheets. On June 30, 2017 , we purchased 278 of our common shares valued at $18.31 per common share, the closing price of our common shares on the Nasdaq on that day, from a former employee of RMR LLC in satisfaction of tax withholding and payment obligations in connection with vesting of awards of common shares. Cumulative Other Comprehensive Income Cumulative other comprehensive income (loss) represents the unrealized gain on the RMR Inc. shares we own and our share of the comprehensive income of our equity method investees, Select Income REIT, or SIR, and Affiliates Insurance Company, or AIC. The following table presents changes in the amounts we recognized in cumulative other comprehensive income (loss) by component for the three and six months ended June 30, 2017 : Three Months Ended June 30, 2017 Unrealized Gain Equity in (Loss) on Investment Unrealized Gain in Available for (Loss) of Sale Securities Investees Total Balance at March 31, 2017 $ 33,216 $ 10,498 $ 43,714 Other comprehensive loss before reclassifications (1,032 ) (328 ) (1,360 ) Amounts reclassified from cumulative other comprehensive loss to net income (1) — (4 ) (4 ) Net current period other comprehensive loss (1,032 ) (332 ) (1,364 ) Balance at June 30, 2017 $ 32,184 $ 10,166 $ 42,350 Six Months Ended June 30, 2017 Unrealized Gain Equity in on Investmen t Unrealized Gain in Available for o f Sale Securities Investees Total December 31, 2016 $ 21,074 $ 5,883 $ 26,957 Other comprehensive income before reclassifications 11,110 4,271 15,381 Amounts reclassified from cumulative other comprehensive income to net income (1) — 12 12 Net current period other comprehensive income 11,110 4,283 15,393 Balance at June 30, 2017 $ 32,184 $ 10,166 $ 42,350 (1) Amounts reclassified from cumulative other comprehensive income (loss) are included in equity in earnings of investees in our condensed consolidated statements of comprehensive income.

Business and Property Managemen

Business and Property Management Agreements with RMR LLC	6 Months Ended
Business and Property Management Agreements with RMR LLC	Jun. 30, 2017
Property Management Fee [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 our property level operations. Pursuant to our business management agreement with RMR LLC, we recognized net business management fees of $3,646 and $2,534 for the three months ended June 30, 2017 and 2016 , respectively, and $6,350 and $5,042 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 estimated 2017 incentive fees of $893 based on our common share total return, as defined, 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 are included in general and administrative expenses in our condensed 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 $2,567 and $2,277 for the three months ended June 30, 2017 and 2016 , respectively, and $5,033 and $4,386 for the six months ended June 30, 2017 and 2016 , respectively. These amounts are included in other 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 $3,655 and $2,966 for property management related expenses for the three months ended June 30, 2017 and 2016 , respectively, and $7,046 and $5,910 for the six months ended June 30, 2017 and 2016 , respectively, which amounts are included in other 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 amount recognized as expense for internal audit costs was $67 for both the three months ended June 30, 2017 and 2016 , respectively, and $135 and $134 for the six months ended June 30, 2017 and 2016 , respectively. These amounts are included in general and administrative expenses in our condensed consolidated statements of comprehensive income.

Related Person Transactions

Related Person Transactions	6 Months Ended
Related Person Transactions	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Person Transactions	Related Person Transactions We have relationships and historical and continuing transactions with RMR LLC, RMR Inc., SIR, 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. Our Manager, RMR LLC. See Note 10 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 1,214,225 shares of class A common stock of RMR Inc. See Note 8 for further information regarding our investment in RMR Inc. SIR . As of June 30, 2017 , we owned 24,918,421 of SIR's common shares, or approximately 27.9% of its outstanding common shares. Our Managing Trustees also serve as managing trustees of SIR, and our President and Chief Operating Officer also serves as the president and chief operating officer of SIR. RMR LLC provides management services to SIR and us. See Note 12 for further information regarding our investment in SIR. AIC . We, SIR, ABP Trust 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 currently expect to pay aggregate annual premiums, including taxes and fees, of approximately $757 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 $7,917 and $7,235 , 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 investees in our condensed consolidated statements of comprehensive income. Our other comprehensive income includes our proportionate part of unrealized gains (losses) on securities which are owned and held for sale by AIC. For further information about these and other such relationships and certain other related person transactions, please refer to our Annual Report.

Equity Investment in Select Inc

Equity Investment in Select Income REIT	6 Months Ended
Equity Investment in Select Income REIT	Jun. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Equity Investment in Select Income REIT	Equity Investment in Select Income REIT As described in Note 11, as of June 30, 2017 , we owned 24,918,421 , or approximately 27.9% , of the then outstanding SIR common shares. SIR is a REIT which owns properties that are primarily leased to single tenants. We account for our investment in SIR under the equity method. Under the equity method, we record our proportionate share of SIR’s net income as equity in earnings of an investee in our condensed consolidated statements of comprehensive income. We recorded $8,207 and $9,383 of equity in the earnings of SIR for the three months ended June 30, 2017 and 2016 , respectively, and $10,818 and $19,240 of equity in the earnings of SIR for the six months ended June 30, 2017 and 2016 , respectively. Our other comprehensive income includes our proportionate share of SIR’s unrealized gains (losses) of ($389) and $2,563 for the three months ended June 30, 2017 and 2016 , respectively, and $4,103 and $7,055 for the six months ended June 30, 2017 and 2016 , respectively. The adjusted GAAP cost basis of our investments in SIR was less than our proportionate share of SIR’s total shareholders’ equity book value on the dates we acquired the shares. As of June 30, 2017 , our remaining basis difference was $88,713 and as required under GAAP, we are accreting this basis difference to earnings over the estimated remaining useful lives of certain real estate assets and intangible assets and liabilities owned by SIR. This accretion increased our equity in the earnings of SIR by $736 and $740 for the three months ended June 30, 2017 and 2016 , respectively, and $1,472 and $1,480 for the six months ended June 30, 2017 and 2016 , respectively. As of June 30, 2017 , our investment in SIR had a carrying value of $477,233 and a market value, based on the closing price of SIR common shares on the Nasdaq on June 30, 2017 , of $598,790 . We periodically evaluate our equity investment in SIR for possible indicators of other than temporary impairment whenever events or changes in circumstances indicate the carrying amount of the investment might not be recoverable. These indicators may include the length of time the market value of our investment is below our cost basis, the financial condition of SIR, our intent and ability to be a long term holder of the investment and other considerations. If the decline in fair value is judged to be other than temporary, we may record an impairment charge to adjust the basis of the investment to its fair value. We received cash distributions from SIR totaling $12,708 and $12,459 during the three months ended June 30, 2017 and 2016 , respectively, and $25,416 and $24,918 during the six months ended June 30, 2017 and 2016 , respectively. The following are summarized financial data of SIR as reported in SIR’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 , or the SIR Quarterly Report. References in our condensed consolidated financial statements to the SIR Quarterly Report are included as references to the source of the data only, and the information in the SIR Quarterly Report is not incorporated by reference into our condensed consolidated financial statements. Condensed Consolidated Balance Sheets June 30, December 31, 2017 2016 Real estate properties, net $ 3,892,729 $ 3,899,792 Acquired real estate leases, net 496,792 506,298 Properties held for sale 23,089 — Cash and cash equivalents 21,683 22,127 Rents receivable, net 114,430 124,089 Other assets, net 124,867 87,376 Total assets $ 4,673,590 $ 4,639,682 Unsecured revolving credit facility $ 67,000 $ 327,000 Unsecured term loan, net 348,622 348,373 Senior unsecured notes, net 1,774,769 1,430,300 Mortgage notes payable, net 245,235 245,643 Assumed real estate lease obligations, net 73,200 77,622 Other liabilities 133,510 136,782 Shareholders' equity 2,031,254 2,073,962 Total liabilities and shareholders' equity $ 4,673,590 $ 4,639,682 Condensed Consolidated Statements of Income Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Rental income $ 97,041 $ 96,615 $ 194,385 $ 194,475 Tenant reimbursements and other income 18,829 18,289 37,779 37,661 Total revenues 115,870 114,904 232,164 232,136 Real estate taxes 10,836 10,522 21,679 20,810 Other operating expenses 13,523 12,635 26,390 25,593 Depreciation and amortization 34,317 33,405 68,057 66,874 Acquisition related costs — — — 58 General and administrative 8,181 7,374 23,069 14,350 Write-off of straight line rents receivable, net — — 12,517 — Loss on asset impairment — — 4,047 — Loss on impairment of real estate assets 229 — 229 — Total expenses 67,086 63,936 155,988 127,685 Operating income 48,784 50,968 76,176 104,451 Dividend income 396 475 793 475 Interest expense (22,808 ) (20,584 ) (43,895 ) (41,193 ) Income before income tax expense and equity in earnings of an investee 26,372 30,859 33,074 63,733 Income tax expense (85 ) (124 ) (187 ) (263 ) Equity in earnings of an investee 374 17 502 94 Net income 26,661 30,752 33,389 63,564 Net income allocated to noncontrolling interest — — — (33 ) Net income attributed to SIR $ 26,661 $ 30,752 $ 33,389 $ 63,531 Weighted average common shares outstanding (basic) 89,338 89,292 89,334 89,289 Weighted average common shares outstanding (diluted) $ 89,362 $ 89,315 $ 89,356 $ 89,306 Net income attributed to SIR per common share (basic and diluted) $ 0.30 $ 0.34 $ 0.37 $ 0.71

Segment Information

Segment Information	6 Months Ended
Segment Information	Jun. 30, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information We operate in two separate reportable business segments: direct ownership of real estate properties and our equity method investment in SIR. Three Months Ended June 30, 2017 Investment Investment in Real Estate in SIR Corporate Consolidated Rental income $ 69,887 $ — $ — $ 69,887 Expenses: Real estate taxes 7,941 — — 7,941 Utility expenses 4,172 — — 4,172 Other operating expenses 15,187 — — 15,187 Depreciation and amortization 20,663 — — 20,663 General and administrative — — 5,086 5,086 Total expenses 47,963 — 5,086 53,049 Operating income (loss) 21,924 — (5,086 ) 16,838 Dividend income — — 303 303 Interest income 48 — 19 67 Interest expense (405 ) — (13,558 ) (13,963 ) Gain on issuance of shares by Select Income REIT — 21 — 21 Income (loss) from continuing operations before income taxes and equity in earnings of investees 21,567 21 (18,322 ) 3,266 Income tax expense — — (25 ) (25 ) Equity in earnings of investees — 8,207 374 8,581 Income (loss) from continuing operations 21,567 8,228 (17,973 ) 11,822 Loss from discontinued operations (145 ) — — (145 ) Net income (loss) $ 21,422 $ 8,228 $ (17,973 ) $ 11,677 Six Months Ended June 30, 2017 Investment Investment in Real Estate in SIR Corporate Consolidated Rental income $ 139,183 $ — $ — $ 139,183 Expenses: Real estate taxes 16,118 — — 16,118 Utility expenses 8,778 — — 8,778 Other operating expenses 29,179 — — 29,179 Depreciation and amortization 41,168 — — 41,168 General and administrative — — 9,048 9,048 Total expenses 95,243 — 9,048 104,291 Operating income (loss) 43,940 — (9,048 ) 34,892 Dividend income — — 607 607 Interest income 94 — 34 128 Interest expense (837 ) — (26,707 ) (27,544 ) Gain on issuance of shares by Select Income REIT — 21 — 21 Income (loss) from continuing operations before income taxes and equity in earnings of investees 43,197 21 (35,114 ) 8,104 Income tax expense — — (43 ) (43 ) Equity in earnings of investees — 10,818 502 11,320 Income (loss) from continuing operations 43,197 10,839 (34,655 ) 19,381 Loss from discontinued operations (289 ) — — (289 ) Net income (loss) $ 42,908 $ 10,839 $ (34,655 ) $ 19,092 As of June 30, 2017 Investment Investment in Real Estate in SIR Corporate Consolidated Total Assets $ 1,800,454 $ 477,233 $ 87,422 $ 2,365,109 Three Months Ended June 30, 2016 Investment Investment in Real Estate in SIR Corporate Consolidated Rental income $ 64,061 $ — $ — $ 64,061 Expenses: Real estate taxes 7,566 — — 7,566 Utility expenses 3,673 — — 3,673 Other operating expenses 13,266 — — 13,266 Depreciation and amortization 17,985 — — 17,985 Acquisition related costs 64 — — 64 General and administrative — — 4,008 4,008 Total expenses 42,554 — 4,008 46,562 Operating income (loss) 21,507 — (4,008 ) 17,499 Dividend income — — 363 363 Interest income — — 10 10 Interest expense (429 ) — (9,885 ) (10,314 ) Gain on issuance of shares by Select Income REIT — 16 — 16 Income (loss) from continuing operations before income taxes and equity in earnings of investees 21,078 16 (13,520 ) 7,574 Income tax expense — — (35 ) (35 ) Equity in earnings of investees — 9,383 17 9,400 Income (loss) from continuing operations 21,078 9,399 (13,538 ) 16,939 Loss from discontinued operations (126 ) — — (126 ) Net income (loss) $ 20,952 $ 9,399 $ (13,538 ) $ 16,813 Six Months Ended June 30, 2016 Investment Investment in Real Estate in SIR Corporate Consolidated Rental income $ 127,672 $ — $ — $ 127,672 Expenses: Real estate taxes 15,219 — — 15,219 Utility expenses 7,847 — — 7,847 Other operating expenses 26,177 — — 26,177 Depreciation and amortization 36,309 — — 36,309 Acquisition related costs 216 — — 216 General and administrative — — 7,534 7,534 Total expenses 85,768 — 7,534 93,302 Operating income (loss) 41,904 — (7,534 ) 34,370 Dividend income — — 363 363 Interest income — — 16 16 Interest expense (1,524 ) — (18,154 ) (19,678 ) Gain on early extinguishment of debt 104 — — 104 Gain on issuance of shares by Select Income REIT — 16 — 16 Income (loss) from continuing operations before income taxes and equity in earnings of investees 40,484 16 (25,309 ) 15,191 Income tax expense — — (50 ) (50 ) Equity in earnings of investees — 19,240 94 19,334 Income (loss) from continuing operations 40,484 19,256 (25,265 ) 34,475 Loss from discontinued operations (275 ) — — (275 ) Net income (loss) $ 40,209 $ 19,256 $ (25,265 ) $ 34,200 As of December 31, 2016 Investment Investment in Real Estate in SIR Corporate Consolidated Total Assets $ 1,807,560 $ 487,708 $ 89,798 $ 2,385,066

Recent Accounting Pronounceme20

Recent Accounting Pronouncements (Policies)	6 Months Ended
Recent Accounting Pronouncements (Policies)	Jun. 30, 2017
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements On January 1, 2017, we adopted the Financial Accounting Standards Board, or FASB, Accounting Standards Update, or ASU, No. 2017-01, Clarifying the Definition of a Business , which 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 the 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 condensed 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, 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 consolidated financial statements with the exception of profit recognition on real estate sales. We currently have recorded a deferred gain on sale of real estate of $712 that under current guidance would be recognized upon repayment of a promissory note we received in connection with the sale but will be recognized in its entirety upon adoption of ASU No. 2014-09. 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.

Weighted Average Common Shares

Weighted Average Common Shares (Tables)	6 Months Ended
Weighted Average Common Shares (Tables)	Jun. 30, 2017
Earnings Per Share, Basic and Diluted [Abstract]
Weighted Average Common Share Amounts	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): For the Three Months For the Six Months Ended June 30, Ended June 30, 2017 2016 2017 2016 Weighted average common shares for basic earnings per share 71,088 71,038 71,083 71,034 Effect of dilutive securities: unvested share awards 31 23 26 12 Weighted average common shares for diluted earnings per share 71,119 71,061 71,109 71,046

Real Estate Properties (Tables)

Real Estate Properties (Tables)	6 Months Ended
Real Estate Properties (Tables)	Jun. 30, 2017
Real Estate [Abstract]
Schedule of purchase prices of acquisitions allocated based on the estimated fair values of the acquired assets and assumed liabilities	Our allocation of the purchase price of this acquisition based on the estimated fair values of the acquired assets and assumed liabilities is presented in the table below. Number of Buildings Other Acquisition Properties/ Square Purchase and Assumed Date Location Type Buildings Feet Price Land Improvements Assets Jan-17 Manassas, VA Office 1/1 69,374 $ 12,648 $ 1,562 $ 8,244 $ 2,842
Summarized balance sheet and income statement information for properties classified as discontinued operations	Summarized balance sheet and income statement information for this property is as follows: Balance Sheets June 30, December 31, 2017 2016 Real estate properties, net $ 12,259 $ 12,260 Other assets 275 281 Assets of discontinued operations $ 12,534 $ 12,541 Other liabilities $ 81 $ 45 Liabilities of discontinued operations $ 81 $ 45 Statements of Operations Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Rental income $ 5 $ 28 $ 12 $ 56 Real estate taxes (25 ) (23 ) (49 ) (46 ) Utility expenses (34 ) (29 ) (80 ) (79 ) Other operating expenses (62 ) (73 ) (115 ) (149 ) General and administrative (29 ) (29 ) (57 ) (57 ) Loss from discontinued operations $ (145 ) $ (126 ) $ (289 ) $ (275 )

Fair Value of Assets and Liab23

Fair Value of Assets and Liabilities (Tables)	6 Months Ended
Fair Value of Assets and Liabilities (Tables)	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of assets measured on a recurring and non-recurring basis at fair value, categorized by the level of inputs used in the valuation assets	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: Fair Value at Reporting Date Using Quoted Prices in Significant Estimated Active Markets for Significant Other Unobservable Fair Identical Assets Observable Inputs Inputs Description Value (Level 1) (Level 2) (Level 3) Recurring Fair Value Measurements Assets: Investment in RMR Inc. (1) $ 59,072 $ 59,072 $ — $ — Non-Recurring Fair Value Measurements Assets: Property held for sale and classified as discontinued operations (2) $ 12,259 $ — $ — $ 12,259 (1) Our 1,214,225 shares of class A common stock of The RMR Group Inc., or RMR Inc., which are included in other assets in our condensed consolidated balance sheets, are reported at fair value which is based on quoted market prices (Level 1 inputs). Our historical cost basis for these shares is $26,888 as of June 30, 2017 . The net unrealized gain of $32,184 for these shares as of June 30, 2017 is included in cumulative other comprehensive income in our condensed consolidated balance sheets. (2) We estimated the fair value of this property at June 30, 2017 based upon broker estimates of value less estimated sale costs (Level 3 inputs as defined in the fair value hierarchy under GAAP).
Schedule of fair value and carrying value of financial instruments	At June 30, 2017 and December 31, 2016 , the fair values of our financial instruments approximated their carrying values in our condensed consolidated financial statements due to their short term nature or variable interest rates, except as follows: As of June 30, 2017 As of December 31, 2016 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Senior unsecured notes, 3.75% interest rate, due in 2019 $ 347,524 $ 353,386 $ 346,952 $ 354,078 Senior unsecured notes, 5.875% interest rate, due in 2046 300,060 321,036 299,892 292,268 Mortgage note payable, 5.88% interest rate, due in 2021 (2) 13,731 14,528 13,841 14,492 Mortgage note payable, 7.00% interest rate, due in 2019 (2) 8,587 8,902 8,778 9,188 Mortgage note payable, 8.15% interest rate, due in 2021 (2) 4,673 4,988 5,218 5,575 $ 674,575 $ 702,840 $ 674,681 $ 675,601 (1) Carrying amount includes certain unamortized debt issuance costs and unamortized premiums and discounts. (2) We assumed these mortgages in connection with our acquisitions of the encumbered properties. The stated interest rates for these mortgage debts are the contractually stated rates. We recorded the assumed mortgages at estimated fair value on the date of acquisition and we are amortizing the fair value premiums, if any, to interest expense over the respective terms of the mortgages to reduce interest expense to the estimated market interest rates as of the date of acquisition.

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
Shareholders' Equity (Tables)	Jun. 30, 2017
Equity [Abstract]
Schedule of changes in each component of cumulative other comprehensive income (loss)	The following table presents changes in the amounts we recognized in cumulative other comprehensive income (loss) by component for the three and six months ended June 30, 2017 : Three Months Ended June 30, 2017 Unrealized Gain Equity in (Loss) on Investment Unrealized Gain in Available for (Loss) of Sale Securities Investees Total Balance at March 31, 2017 $ 33,216 $ 10,498 $ 43,714 Other comprehensive loss before reclassifications (1,032 ) (328 ) (1,360 ) Amounts reclassified from cumulative other comprehensive loss to net income (1) — (4 ) (4 ) Net current period other comprehensive loss (1,032 ) (332 ) (1,364 ) Balance at June 30, 2017 $ 32,184 $ 10,166 $ 42,350 Six Months Ended June 30, 2017 Unrealized Gain Equity in on Investmen t Unrealized Gain in Available for o f Sale Securities Investees Total December 31, 2016 $ 21,074 $ 5,883 $ 26,957 Other comprehensive income before reclassifications 11,110 4,271 15,381 Amounts reclassified from cumulative other comprehensive income to net income (1) — 12 12 Net current period other comprehensive income 11,110 4,283 15,393 Balance at June 30, 2017 $ 32,184 $ 10,166 $ 42,350 (1) Amounts reclassified from cumulative other comprehensive income (loss) are included in equity in earnings of investees in our condensed consolidated statements of comprehensive income.

Equity Investment in Select I25

Equity Investment in Select Income REIT (Tables) - SIR	6 Months Ended
Equity Investment in Select Income REIT (Tables) - SIR	Jun. 30, 2017
Schedule Of Summarized Balance Sheet Information Of Equity Method Investee	Condensed Consolidated Balance Sheets June 30, December 31, 2017 2016 Real estate properties, net $ 3,892,729 $ 3,899,792 Acquired real estate leases, net 496,792 506,298 Properties held for sale 23,089 — Cash and cash equivalents 21,683 22,127 Rents receivable, net 114,430 124,089 Other assets, net 124,867 87,376 Total assets $ 4,673,590 $ 4,639,682 Unsecured revolving credit facility $ 67,000 $ 327,000 Unsecured term loan, net 348,622 348,373 Senior unsecured notes, net 1,774,769 1,430,300 Mortgage notes payable, net 245,235 245,643 Assumed real estate lease obligations, net 73,200 77,622 Other liabilities 133,510 136,782 Shareholders' equity 2,031,254 2,073,962 Total liabilities and shareholders' equity $ 4,673,590 $ 4,639,682
Schedule Of Summarized Income Statement Information Of Equity Method Investee	Condensed Consolidated Statements of Income Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Rental income $ 97,041 $ 96,615 $ 194,385 $ 194,475 Tenant reimbursements and other income 18,829 18,289 37,779 37,661 Total revenues 115,870 114,904 232,164 232,136 Real estate taxes 10,836 10,522 21,679 20,810 Other operating expenses 13,523 12,635 26,390 25,593 Depreciation and amortization 34,317 33,405 68,057 66,874 Acquisition related costs — — — 58 General and administrative 8,181 7,374 23,069 14,350 Write-off of straight line rents receivable, net — — 12,517 — Loss on asset impairment — — 4,047 — Loss on impairment of real estate assets 229 — 229 — Total expenses 67,086 63,936 155,988 127,685 Operating income 48,784 50,968 76,176 104,451 Dividend income 396 475 793 475 Interest expense (22,808 ) (20,584 ) (43,895 ) (41,193 ) Income before income tax expense and equity in earnings of an investee 26,372 30,859 33,074 63,733 Income tax expense (85 ) (124 ) (187 ) (263 ) Equity in earnings of an investee 374 17 502 94 Net income 26,661 30,752 33,389 63,564 Net income allocated to noncontrolling interest — — — (33 ) Net income attributed to SIR $ 26,661 $ 30,752 $ 33,389 $ 63,531 Weighted average common shares outstanding (basic) 89,338 89,292 89,334 89,289 Weighted average common shares outstanding (diluted) $ 89,362 $ 89,315 $ 89,356 $ 89,306 Net income attributed to SIR per common share (basic and diluted) $ 0.30 $ 0.34 $ 0.37 $ 0.71

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of Segment Information	Three Months Ended June 30, 2017 Investment Investment in Real Estate in SIR Corporate Consolidated Rental income $ 69,887 $ — $ — $ 69,887 Expenses: Real estate taxes 7,941 — — 7,941 Utility expenses 4,172 — — 4,172 Other operating expenses 15,187 — — 15,187 Depreciation and amortization 20,663 — — 20,663 General and administrative — — 5,086 5,086 Total expenses 47,963 — 5,086 53,049 Operating income (loss) 21,924 — (5,086 ) 16,838 Dividend income — — 303 303 Interest income 48 — 19 67 Interest expense (405 ) — (13,558 ) (13,963 ) Gain on issuance of shares by Select Income REIT — 21 — 21 Income (loss) from continuing operations before income taxes and equity in earnings of investees 21,567 21 (18,322 ) 3,266 Income tax expense — — (25 ) (25 ) Equity in earnings of investees — 8,207 374 8,581 Income (loss) from continuing operations 21,567 8,228 (17,973 ) 11,822 Loss from discontinued operations (145 ) — — (145 ) Net income (loss) $ 21,422 $ 8,228 $ (17,973 ) $ 11,677 Six Months Ended June 30, 2017 Investment Investment in Real Estate in SIR Corporate Consolidated Rental income $ 139,183 $ — $ — $ 139,183 Expenses: Real estate taxes 16,118 — — 16,118 Utility expenses 8,778 — — 8,778 Other operating expenses 29,179 — — 29,179 Depreciation and amortization 41,168 — — 41,168 General and administrative — — 9,048 9,048 Total expenses 95,243 — 9,048 104,291 Operating income (loss) 43,940 — (9,048 ) 34,892 Dividend income — — 607 607 Interest income 94 — 34 128 Interest expense (837 ) — (26,707 ) (27,544 ) Gain on issuance of shares by Select Income REIT — 21 — 21 Income (loss) from continuing operations before income taxes and equity in earnings of investees 43,197 21 (35,114 ) 8,104 Income tax expense — — (43 ) (43 ) Equity in earnings of investees — 10,818 502 11,320 Income (loss) from continuing operations 43,197 10,839 (34,655 ) 19,381 Loss from discontinued operations (289 ) — — (289 ) Net income (loss) $ 42,908 $ 10,839 $ (34,655 ) $ 19,092 As of June 30, 2017 Investment Investment in Real Estate in SIR Corporate Consolidated Total Assets $ 1,800,454 $ 477,233 $ 87,422 $ 2,365,109 Three Months Ended June 30, 2016 Investment Investment in Real Estate in SIR Corporate Consolidated Rental income $ 64,061 $ — $ — $ 64,061 Expenses: Real estate taxes 7,566 — — 7,566 Utility expenses 3,673 — — 3,673 Other operating expenses 13,266 — — 13,266 Depreciation and amortization 17,985 — — 17,985 Acquisition related costs 64 — — 64 General and administrative — — 4,008 4,008 Total expenses 42,554 — 4,008 46,562 Operating income (loss) 21,507 — (4,008 ) 17,499 Dividend income — — 363 363 Interest income — — 10 10 Interest expense (429 ) — (9,885 ) (10,314 ) Gain on issuance of shares by Select Income REIT — 16 — 16 Income (loss) from continuing operations before income taxes and equity in earnings of investees 21,078 16 (13,520 ) 7,574 Income tax expense — — (35 ) (35 ) Equity in earnings of investees — 9,383 17 9,400 Income (loss) from continuing operations 21,078 9,399 (13,538 ) 16,939 Loss from discontinued operations (126 ) — — (126 ) Net income (loss) $ 20,952 $ 9,399 $ (13,538 ) $ 16,813 Six Months Ended June 30, 2016 Investment Investment in Real Estate in SIR Corporate Consolidated Rental income $ 127,672 $ — $ — $ 127,672 Expenses: Real estate taxes 15,219 — — 15,219 Utility expenses 7,847 — — 7,847 Other operating expenses 26,177 — — 26,177 Depreciation and amortization 36,309 — — 36,309 Acquisition related costs 216 — — 216 General and administrative — — 7,534 7,534 Total expenses 85,768 — 7,534 93,302 Operating income (loss) 41,904 — (7,534 ) 34,370 Dividend income — — 363 363 Interest income — — 16 16 Interest expense (1,524 ) — (18,154 ) (19,678 ) Gain on early extinguishment of debt 104 — — 104 Gain on issuance of shares by Select Income REIT — 16 — 16 Income (loss) from continuing operations before income taxes and equity in earnings of investees 40,484 16 (25,309 ) 15,191 Income tax expense — — (50 ) (50 ) Equity in earnings of investees — 19,240 94 19,334 Income (loss) from continuing operations 40,484 19,256 (25,265 ) 34,475 Loss from discontinued operations (275 ) — — (275 ) Net income (loss) $ 40,209 $ 19,256 $ (25,265 ) $ 34,200 As of December 31, 2016 Investment Investment in Real Estate in SIR Corporate Consolidated Total Assets $ 1,807,560 $ 487,708 $ 89,798 $ 2,385,066

Recent Accounting Pronounceme27

Recent Accounting Pronouncements (Details) $ in Thousands	Jun. 30, 2017USD ($)
Accounting Policies [Abstract]
Deferred gain on sale of real estate	$ 712

Weighted Average Common Share28

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, Basic and Diluted [Abstract]
Weighted average common shares for basic earnings per share (in shares)	71,088	71,038	71,083	71,034
Effect of dilutive securities: unvested share awards (in shares)	31	23	26	12
Weighted average common shares for diluted earnings per share (in shares)	71,119	71,061	71,109	71,046

Real Estate Properties - Narrat

Real Estate Properties - Narrative (Details) $ in Thousands	3 Months Ended	6 Months Ended
Real Estate Properties - Narrative (Details) $ in Thousands	Jun. 30, 2017USD ($)ft²leasepropertybuilding	Jun. 30, 2017USD ($)ft²leasepropertybuilding	Dec. 31, 2016USD ($)	Jun. 30, 2016propertybuilding
Real Estate Properties [Line Items]
Number of properties \| property	74	74
Number of buildings \| building	96	96
Carrying value of real estate properties	$ 1,921,945	$ 1,921,945	$ 1,888,760
Number of leases entered \| lease	16	28
Rentable square feet (in feet) \| ft²	288,428	648,531
Weighted average lease term	7 years 2 months 12 days	9 years 1 month 6 days
Expenditures committed on leases	$ 2,465	$ 4,706
Committed but unspent tenant related obligations estimated	$ 24,873	24,873
Square foot expansion cost		5,503
Interest costs capitalized		$ 172
Continuing operations
Real Estate Properties [Line Items]
Number of properties \| property	74	74
Number of buildings \| building	96	96
Carrying value of real estate properties	$ 1,921,945	$ 1,921,945
Discontinued operations
Real Estate Properties [Line Items]
Number of properties \| property	1	1		1
Number of buildings \| building	1	1		1
Property held for sale and classified as discontinued operations	$ 12,259	$ 12,259

Real Estate Properties - Acquis

Real Estate Properties - Acquisition Activities (Details) $ / shares in Units, $ in Thousands	1 Months Ended			6 Months Ended
	Jun. 30, 2017USD ($)ft²propertyjoint_venturebuilding$ / shares	Jan. 31, 2017USD ($)ft²propertybuilding	Aug. 31, 2016USD ($)	Jun. 30, 2017USD ($)ft²propertybuilding$ / shares	Jun. 30, 2016USD ($)	Dec. 31, 2016$ / shares
Real Estate Properties [Line Items]
Purchase price				$ 12,648	$ 79,285
Par value (in dollars per share) \| $ / shares	$ 0.01			$ 0.01		$ 0.01
Manassas, VA
Real Estate Properties [Line Items]
Number of properties \| property	1	1		1
Number of buildings acquired \| building		1		1
Rentable square feet of properties (in square feet) \| ft²	69,374	69,374		69,374
Percentage of property leased				100.00%
Purchase price		$ 12,648		$ 12,648
Capitalized acquisition costs	$ 28			$ 28
Land		1,562
Buildings and Improvement		8,244
Other assumed assets		$ 2,842
Transferable Development Rights \| Washington D.C.
Real Estate Properties [Line Items]
Consideration transferred			$ 2,030
First Potomac Realty Trust
Real Estate Properties [Line Items]
Number of properties \| property	39			39
Number of buildings acquired \| building	74
Rentable square feet of properties (in square feet) \| ft²	6,454,382			6,454,382
Par value (in dollars per share) \| $ / shares	$ 0.001			$ 0.001
Right to receive per common stock (in dollars per share) \| $ / shares	$ 11.15
Consideration transferred	$ 1,387,265
Value of common shares outstanding in acquisition	683,372			$ 683,372
Expected repayment of debt	417,800
Debt assumed	$ 231,360			$ 231,360
First Potomac Realty Trust
Real Estate Properties [Line Items]
Number of joint ventures \| joint_venture	2
Joint Venture Property 1 \| First Potomac Realty Trust
Real Estate Properties [Line Items]
Ownership percentage	50.00%			50.00%
Joint Venture Property 2 \| First Potomac Realty Trust
Real Estate Properties [Line Items]
Ownership percentage	51.00%			51.00%

Real Estate Properties - Dispos

Real Estate Properties - Disposition Activities (Details) $ in Thousands	1 Months Ended
	Jun. 30, 2017USD ($)propertybuilding	Dec. 31, 2016USD ($)	Mar. 31, 2016ft²propertybuilding
Real Estate Properties [Line Items]
Number of properties \| property	74
Number of buildings \| building	96
Net book value	$ 1,601,940	$ 1,591,956
Discontinued Operations, Held-for-sale \| One building \| Falls Church, VA \| Office Building
Real Estate Properties [Line Items]
Number of properties \| property			1
Number of buildings \| building			1
Rentable square feet of properties (in square feet) \| ft²			164,746
Net book value	12,282
Non-refundable deposit	225
Aggregate sale price of properties sold, excluding closing costs	$ 13,523

Real Estate Properties - Balanc

Real Estate Properties - Balance Sheet Information for Disposal of Property (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets of discontinued operations	$ 12,534	$ 12,541
Liabilities of discontinued operations	81	45
Discontinued Operations, Held-for-sale \| Discontinued operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Real estate properties, net	12,259	12,260
Other assets	275	281
Assets of discontinued operations	12,534	12,541
Other liabilities	81	45
Liabilities of discontinued operations	$ 81	$ 45

Real Estate Properties - Income

Real Estate Properties - Income Statement Information for Disposal of Property (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss from discontinued operations	$ (145)	$ (126)	$ (289)	$ (275)
Discontinued operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Rental income	5	28	12	56
Real estate taxes	(25)	(23)	(49)	(46)
Utility expenses	(34)	(29)	(80)	(79)
Other operating expenses	(62)	(73)	(115)	(149)
General and administrative	(29)	(29)	(57)	(57)
Loss from discontinued operations	$ (145)	$ (126)	$ (289)	$ (275)

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Revenue Recognition [Abstract]
Increase in rental income to record revenue on straight line basis	$ 1,104	$ 435	$ 2,404	$ 584
Straight line rent receivables	24,090		24,090		$ 21,686
Allowance for doubtful accounts	$ 148		$ 148		$ 155

Concentration (Details)

Concentration (Details)	6 Months Ended
Concentration (Details)	Jun. 30, 2017propertygovernment_tenantstate_governmentstatebuilding	Jun. 30, 2016propertybuilding
Concentration
Number of state governments \| state_government	13
Number of other governments \| government_tenant	4
Number of properties \| property	74
Number of buildings \| building	96
Number of states in which acquired properties located \| state	31
Annualized rental income, excluding properties classified as discontinued operations \| Virginia
Concentration
Annualized Rental income percent	14.80%
Annualized rental income, excluding properties classified as discontinued operations \| California
Concentration
Annualized Rental income percent	14.80%
Annualized rental income, excluding properties classified as discontinued operations \| District of Columbia
Concentration
Annualized Rental income percent	9.50%
Annualized rental income, excluding properties classified as discontinued operations \| Georgia
Concentration
Annualized Rental income percent	8.60%
Annualized rental income, excluding properties classified as discontinued operations \| New York
Concentration
Annualized Rental income percent	7.20%
Annualized rental income, excluding properties classified as discontinued operations \| Maryland
Concentration
Annualized Rental income percent	7.00%
Annualized rental income, excluding properties classified as discontinued operations \| Massachusetts
Concentration
Annualized Rental income percent	4.90%
Annualized rental income, excluding properties classified as discontinued operations \| Tenant concentration \| U.S. Government, state governments and Other Three Government
Concentration
Concentration risk percentage	87.60%	92.70%
Annualized rental income, excluding properties classified as discontinued operations \| Tenant concentration \| U.S. Government
Concentration
Concentration risk percentage	59.60%	64.10%
Discontinued operations
Concentration
Number of properties \| property	1	1
Number of buildings \| building	1	1

Indebtedness (Details)

Indebtedness (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Indebtedness (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jul. 25, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Borrowings outstanding	$ 155,000		$ 155,000			$ 160,000
Maximum borrowing capacity on revolving credit facility	2,500,000		2,500,000
Unsecured term loan, due in 2020
Debt Instrument [Line Items]
Face amount	$ 300,000		$ 300,000
Interest rate (as a percent)	2.60%		2.60%
The weighted average annual interest rate (as a percent)	2.40%	1.80%	2.30%	1.80%
Unsecured term loan, due in 2022
Debt Instrument [Line Items]
Face amount	$ 250,000		$ 250,000
Interest rate (as a percent)	3.00%		3.00%
The weighted average annual interest rate (as a percent)	2.80%	2.20%	2.70%	2.20%
Unsecured revolving credit facility
Debt Instrument [Line Items]
Borrowings outstanding	$ 155,000		$ 155,000
Maximum borrowing capacity on revolving credit facility	$ 750,000		$ 750,000
Option to extend the maturity date subject to certain conditions and the payment of a fee			1 year
Facility fee (as a percent)			0.25%
Interest rate (as a percent)	2.40%		2.40%
The weighted average annual interest rate (as a percent)	2.20%	1.70%	2.10%	1.70%
Unsecured revolving credit facility \| Subsequent Event
Debt Instrument [Line Items]
Borrowings outstanding					$ 0
Term loans
Debt Instrument [Line Items]
Face amount	$ 550,000		$ 550,000
Senior unsecured notes
Debt Instrument [Line Items]
Face amount	$ 660,000		$ 660,000
LIBOR \| Unsecured term loan, due in 2020
Debt Instrument [Line Items]
Interest rate premium (as a percent)			1.40%
LIBOR \| Unsecured term loan, due in 2022
Debt Instrument [Line Items]
Interest rate premium (as a percent)			1.80%
LIBOR \| Unsecured revolving credit facility
Debt Instrument [Line Items]
Interest rate premium (as a percent)			1.25%

Indebtedness - Narrative (Detai

Indebtedness - Narrative (Details) $ in Thousands	Jul. 20, 2017USD ($)	Jun. 30, 2017USD ($)propertybuilding	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)propertyloanbuilding	Jun. 30, 2016USD ($)
Debt Instrument [Line Items]
Number of properties secured by mortgage notes \| property		3		3
Number of buildings secured by mortgage notes \| building		3		3
Aggregate net book value of secured properties		$ 50,825		$ 50,825
Number of assumed secured mortgage loans \| loan				3
Aggregate principal amount on secured properties		26,747		$ 26,747
Loss on extinguishment of debt		$ 0	$ 0	$ 0	$ (104)
Subsequent Event \| Senior unsecured notes \| 4% Senior Unsecured Notes Due 2022
Debt Instrument [Line Items]
Face amount	$ 300,000
Interest rate (as a percent)	4.00%
Proceeds from issuance of debt	$ 295,404
Redemption percentage of principal amount	101.00%
Commitment Letter \| Subsequent Event
Debt Instrument [Line Items]
Term of debt instrument	364 days
Loss on extinguishment of debt	$ 1,655
Commitment Letter \| Subsequent Event \| Bridge Loan Facility
Debt Instrument [Line Items]
Face amount	$ 750,000

Fair Value of Assets and Liab38

Fair Value of Assets and Liabilities - Recurring and Nonrecurring Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Fair Value of Assets and Liabilities
Common shares owned in RMR Inc. (in shares)	1,214,225		1,214,225
Historical cost	$ 26,888		$ 26,888
Unrealized gain (loss) on investment in available for sale securities	(1,032)	$ 7,237	11,110	$ 20,108
Recurring
Fair Value of Assets and Liabilities
Investment in RMR Inc.	59,072		59,072
Recurring \| Level 1 inputs
Fair Value of Assets and Liabilities
Investment in RMR Inc.	59,072		59,072
Nonrecurring \| Discontinued Operations, Held-for-sale
Fair Value of Assets and Liabilities
Property held for sale and classified as discontinued operations	12,259		12,259
Nonrecurring \| Level 3 inputs \| Discontinued Operations, Held-for-sale
Fair Value of Assets and Liabilities
Property held for sale and classified as discontinued operations	$ 12,259		12,259
Other Comprehensive Income (Loss)
Fair Value of Assets and Liabilities
Unrealized gain (loss) on investment in available for sale securities			$ 32,184

Fair Value of Assets and Liab39

Fair Value of Assets and Liabilities - Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value of Financial Instruments
Senior Notes	$ 647,584	$ 646,844
Mortgage notes payable, net	$ 26,991	27,837
3.75% Senior unsecured note due In 2019
Fair Value of Financial Instruments
Interest rate (as a percent)	3.75%
5.875% Senior unsecured notes due In 2046
Fair Value of Financial Instruments
Interest rate (as a percent)	5.875%
5.88% interest rate, due in 2021
Fair Value of Financial Instruments
Interest rate (as a percent)	5.88%
7.00% interest rate, due in 2019
Fair Value of Financial Instruments
Interest rate (as a percent)	7.00%
8.15% Mortgage notes due in 2021
Fair Value of Financial Instruments
Interest rate (as a percent)	8.15%
Carrying Amount
Fair Value of Financial Instruments
Mortgage notes payable, net	$ 674,575	674,681
Carrying Amount \| 3.75% Senior unsecured note due In 2019
Fair Value of Financial Instruments
Senior Notes	347,524	346,952
Carrying Amount \| 5.875% Senior unsecured notes due In 2046
Fair Value of Financial Instruments
Senior Notes	300,060	299,892
Carrying Amount \| 5.88% interest rate, due in 2021
Fair Value of Financial Instruments
Mortgage notes payable, net	13,731	13,841
Carrying Amount \| 7.00% interest rate, due in 2019
Fair Value of Financial Instruments
Mortgage notes payable, net	8,587	8,778
Carrying Amount \| 8.15% Mortgage notes due in 2021
Fair Value of Financial Instruments
Mortgage notes payable, net	4,673	5,218
Fair Value
Fair Value of Financial Instruments
Mortgage notes payable, net	702,840	675,601
Fair Value \| 3.75% Senior unsecured note due In 2019
Fair Value of Financial Instruments
Senior Notes	353,386	354,078
Fair Value \| 5.875% Senior unsecured notes due In 2046
Fair Value of Financial Instruments
Senior Notes	321,036	292,268
Fair Value \| 5.88% interest rate, due in 2021
Fair Value of Financial Instruments
Mortgage notes payable, net	14,528	14,492
Fair Value \| 7.00% interest rate, due in 2019
Fair Value of Financial Instruments
Mortgage notes payable, net	8,902	9,188
Fair Value \| 8.15% Mortgage notes due in 2021
Fair Value of Financial Instruments
Mortgage notes payable, net	$ 4,988	$ 5,575

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands	Aug. 03, 2017USD ($)	Jul. 28, 2017shares	Jul. 12, 2017USD ($)$ / shares	Jul. 05, 2017$ / sharesshares	Jun. 30, 2017$ / sharesshares	May 22, 2017USD ($)$ / shares	May 17, 2017USD ($)trustee$ / sharesshares	Feb. 23, 2017USD ($)$ / shares
Distributions
Cash distribution to common shareholders (in dollars per share) \| $ / shares						$ 0.43		$ 0.43
Distribution paid to common shareholders \| $						$ 30,606		$ 30,606
Number of trustees \| trustee							6
Shares withheld for tax withholding (in shares) \| shares							450
Value of shares withheld for tax withholding \| $							$ 10
Subsequent Event
Distributions
Distribution paid to common shareholders \| $			$ 41,364
Distribution payable to common shareholders (in dollars per share) \| $ / shares			$ 0.43
Common shares \| Trustees
Distributions
Shares granted to each trustee (in shares) \| shares							3,000
Value of shares granted (in dollars per share) \| $ / shares							$ 21.75
Underwritten Public Offering \| Subsequent Event
Distributions
Number of shares sold in offering (in shares) \| shares				25,000,000
Price per share in offering (in dollars per share) \| $ / shares				$ 18.50
Over-Allotment Option \| Subsequent Event
Distributions
Number of shares sold in offering (in shares) \| shares		2,907,029
Price per share in offering (in dollars per share) \| $ / shares				$ 18.50
Additional number of shares available (in shares) \| shares				3,750,000
Former Employee of RMR LLC
Distributions
Stock repurchased to satisfy tax withholding obligation (in shares) \| shares					278
Stock repurchased to satisfy tax withholding obligation (in dollars per share) \| $ / shares					$ 18.31
Forecast \| Underwritten Public Offering
Distributions
Proceeds from offering \| $	$ 493,838

Shareholders' Equity - AOCI Rol

Shareholders' Equity - AOCI Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at the beginning of the period	$ 43,714	$ 26,957
Other comprehensive income (loss) before reclassifications	(1,360)	15,381
Amounts reclassified from cumulative other comprehensive income (loss) to net income	(4)	12
Net current period other comprehensive loss	(1,364)	15,393
Balance at the end of the period	42,350	42,350
Unrealized Gain on Investment in Available for Sale Securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at the beginning of the period	33,216	21,074
Other comprehensive income (loss) before reclassifications	(1,032)	11,110
Amounts reclassified from cumulative other comprehensive income (loss) to net income	0	0
Net current period other comprehensive loss	(1,032)	11,110
Balance at the end of the period	32,184	32,184
Equity in Unrealized Gain of an Investee
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at the beginning of the period	10,498	5,883
Other comprehensive income (loss) before reclassifications	(328)	4,271
Amounts reclassified from cumulative other comprehensive income (loss) to net income	(4)	12
Net current period other comprehensive loss	(332)	4,283
Balance at the end of the period	$ 10,166	$ 10,166

Business and Property Managem42

Business and Property Management Agreements with RMR LLC (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)employeeagreement	Jun. 30, 2016USD ($)
RMR LLC
Related Party Transaction [Line Items]
Number of employees \| employee			0
Number of agreements \| agreement			2
Related party expense	$ 3,646	$ 2,534	$ 6,350	$ 5,042
Reimbursement expense	3,655	2,966	7,046	5,910
Internal audit costs	67	67	135	134
Business Management Agreement, Incentive Fees \| RMR LLC
Related Party Transaction [Line Items]
Related party expense	893
Net Property Management and Construction Supervision Fees \| RMR LLC
Related Party Transaction [Line Items]
Related party transaction amount	$ 2,567	$ 2,277	5,033	$ 4,386
RMR LLC \| Business Management Agreement, Incentive Fees \| Affiliated Entity
Related Party Transaction [Line Items]
Related party expense			$ 893

Related Person Transactions - R

Related Person Transactions - REITs, for which RMR LLC provides Management Services (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2016
SIR
Related Party Transaction [Line Items]
Shares holding (in shares)		24,918,421
Percentage of outstanding shares owned		27.90%
RMR Inc \| Class A common shares
Related Party Transaction [Line Items]
Shares holding (in shares)		1,214,225
AIC
Related Party Transaction [Line Items]
Carrying value of equity method investments		$ 7,917	$ 7,235
Forecast \| AIC
Related Party Transaction [Line Items]
Insurance coverage amount	$ 757

Equity Investment in Select I44

Equity Investment in Select Income REIT - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]
Equity in earnings of investees	$ 8,581	$ 9,400	$ 11,320	$ 19,334
Investment at carrying value	$ 477,233		477,233		$ 487,708
Cash distributions from SIR			$ 9,345	17,760
SIR
Schedule of Equity Method Investments [Line Items]
Equity investments, common shares owned (in shares)	24,918,421		24,918,421
Percentage of outstanding shares owned	27.90%		27.90%
Equity in earnings of investees	$ 8,207	9,383	$ 10,818	19,240
Equity in unrealized gain (loss) of investees	(389)	2,563	4,103	7,055
The amount of investment in exceed the underlying equity of the investee	88,713		88,713
Accretion in equity of earnings	736	740	1,472	1,480
Investment at carrying value	477,233		477,233
Equity Investments, market value	598,790		598,790
Cash distributions from SIR	$ 12,708	$ 12,459	$ 25,416	$ 24,918

Equity Investment in Select I45

Equity Investment in Select Income REIT - Balance Sheet Information (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Schedule of Equity Method Investments [Line Items]
Real estate properties, net	$ 1,601,940	$ 1,591,956
Acquired real estate leases, net	108,927	124,848
Cash and cash equivalents	12,907	29,941	$ 9,021	$ 8,785
Rents receivable, net	47,717	48,458
Other assets, net	82,256	68,005
Total assets	2,365,109	2,385,066
Unsecured revolving credit facility	155,000	160,000
Unsecured term loan, net	547,511	547,171
Senior unsecured notes, net	647,584	646,844
Mortgage notes payable, net	26,991	27,837
Assumed real estate lease obligations, net	9,423	10,626
Other liabilities	64,479	54,019
Shareholders' equity	908,679	935,004
Total liabilities and shareholders’ equity	2,365,109	2,385,066
SIR \| SIR
Schedule of Equity Method Investments [Line Items]
Real estate properties, net	3,892,729	3,899,792
Acquired real estate leases, net	496,792	506,298
Properties held for sale	23,089	0
Cash and cash equivalents	21,683	22,127
Rents receivable, net	114,430	124,089
Other assets, net	124,867	87,376
Total assets	4,673,590	4,639,682
Unsecured revolving credit facility	67,000	327,000
Unsecured term loan, net	348,622	348,373
Senior unsecured notes, net	1,774,769	1,430,300
Mortgage notes payable, net	245,235	245,643
Assumed real estate lease obligations, net	73,200	77,622
Other liabilities	133,510	136,782
Shareholders' equity	2,031,254	2,073,962
Total liabilities and shareholders’ equity	$ 4,673,590	$ 4,639,682

Equity Investment in Select I46

Equity Investment in Select Income REIT - Income Statement Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Schedule of Equity Method Investments [Line Items]
Total revenues	$ 69,887	$ 64,061	$ 139,183	$ 127,672
Real estate taxes	7,941	7,566	16,118	15,219
Other operating expenses	15,187	13,266	29,179	26,177
Depreciation and amortization	20,663	17,985	41,168	36,309
Acquisition related costs	0	64	0	216
General and administrative	5,086	4,008	9,048	7,534
Total expenses	53,049	46,562	104,291	93,302
Operating income	16,838	17,499	34,892	34,370
Dividend income	303	363	607	363
Interest expense	(13,963)	(10,314)	(27,544)	(19,678)
Income from continuing operations before income taxes and equity in earnings of investees	3,266	7,574	8,104	15,191
Income tax expense	(25)	(35)	(43)	(50)
Equity in earnings of an investee	$ 8,581	$ 9,400	$ 11,320	$ 19,334
Weighted average common shares outstanding (basic) (in shares)	71,088	71,038	71,083	71,034
Weighted average common shares outstanding (diluted) (in shares)	71,119	71,061	71,109	71,046
Net income attributed to SIR per common share (basic and diluted) (in dollars per share)	$ 0.16	$ 0.24	$ 0.27	$ 0.48
SIR
Schedule of Equity Method Investments [Line Items]
Equity in earnings of an investee	$ 8,207	$ 9,383	$ 10,818	$ 19,240
SIR \| SIR
Schedule of Equity Method Investments [Line Items]
Rental income	97,041	96,615	194,385	194,475
Tenant reimbursements and other income	18,829	18,289	37,779	37,661
Total revenues	115,870	114,904	232,164	232,136
Real estate taxes	10,836	10,522	21,679	20,810
Other operating expenses	13,523	12,635	26,390	25,593
Depreciation and amortization	34,317	33,405	68,057	66,874
Acquisition related costs	0	0	0	58
General and administrative	8,181	7,374	23,069	14,350
Write-off of straight line rents receivable, net	0	0	12,517	0
Loss on asset impairment	0	0	4,047	0
Loss on impairment of real estate assets	229	0	229	0
Total expenses	67,086	63,936	155,988	127,685
Operating income	48,784	50,968	76,176	104,451
Dividend income	396	475	793	475
Interest expense	(22,808)	(20,584)	(43,895)	(41,193)
Income from continuing operations before income taxes and equity in earnings of investees	26,372	30,859	33,074	63,733
Income tax expense	(85)	(124)	(187)	(263)
Equity in earnings of an investee	374	17	502	94
Net income	26,661	30,752	33,389	63,564
Net income allocated to noncontrolling interest	0	0	0	(33)
Net income attributed to SIR	$ 26,661	$ 30,752	$ 33,389	$ 63,531
Weighted average common shares outstanding (basic) (in shares)	89,338	89,292	89,334	89,289
Weighted average common shares outstanding (diluted) (in shares)	89,362	89,315	89,356	89,306
Net income attributed to SIR per common share (basic and diluted) (in dollars per share)	$ 0.30	$ 0.34	$ 0.37	$ 0.71

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) $ in Thousands	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)segment	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Segment Reporting Information [Line Items]
Number of segments \| segment			2
Rental income	$ 69,887	$ 64,061	$ 139,183	$ 127,672
Expenses:
Real estate taxes	7,941	7,566	16,118	15,219
Utility expenses	4,172	3,673	8,778	7,847
Other operating expenses	15,187	13,266	29,179	26,177
Depreciation and amortization	20,663	17,985	41,168	36,309
Acquisition related costs	0	64	0	216
General and administrative	5,086	4,008	9,048	7,534
Total expenses	53,049	46,562	104,291	93,302
Operating income	16,838	17,499	34,892	34,370
Dividend income	303	363	607	363
Interest income	67	10	128	16
Interest expense	(13,963)	(10,314)	(27,544)	(19,678)
Gain on early extinguishment of debt	0	0	0	104
Gain on issuance of shares by Select Income REIT	21	16	21	16
Income from continuing operations before income taxes and equity in earnings of investees	3,266	7,574	8,104	15,191
Income tax expense	(25)	(35)	(43)	(50)
Equity in earnings of investees	8,581	9,400	11,320	19,334
Income from continuing operations	11,822	16,939	19,381	34,475
Loss from discontinued operations	(145)	(126)	(289)	(275)
Net income	11,677	16,813	19,092	34,200
Total assets	2,365,109		2,365,109		$ 2,385,066
Operating Segments \| Investment in Real Estate
Segment Reporting Information [Line Items]
Rental income	69,887	64,061	139,183	127,672
Expenses:
Real estate taxes	7,941	7,566	16,118	15,219
Utility expenses	4,172	3,673	8,778	7,847
Other operating expenses	15,187	13,266	29,179	26,177
Depreciation and amortization	20,663	17,985	41,168	36,309
Acquisition related costs		64		216
Total expenses	47,963	42,554	95,243	85,768
Operating income	21,924	21,507	43,940	41,904
Interest income	48		94	0
Interest expense	(405)	(429)	(837)	(1,524)
Gain on early extinguishment of debt				104
Income from continuing operations before income taxes and equity in earnings of investees	21,567	21,078	43,197	40,484
Income from continuing operations	21,567	21,078	43,197	40,484
Loss from discontinued operations	(145)	(126)	(289)	(275)
Net income	21,422	20,952	42,908	40,209
Total assets	1,800,454		1,800,454		1,807,560
Operating Segments \| Investment in SIR
Expenses:
Gain on issuance of shares by Select Income REIT	21	16	21	16
Income from continuing operations before income taxes and equity in earnings of investees	21	16	21	16
Equity in earnings of investees	8,207	9,383	10,818	19,240
Income from continuing operations	8,228	9,399	10,839	19,256
Net income	8,228	9,399	10,839	19,256
Total assets	477,233		477,233		487,708
Corporate, Non-Segment
Expenses:
Acquisition related costs				0
General and administrative	5,086	4,008	9,048	7,534
Total expenses	5,086	4,008	9,048	7,534
Operating income	(5,086)	(4,008)	(9,048)	(7,534)
Dividend income	303	363	607	363
Interest income	19	10	34	16
Interest expense	(13,558)	(9,885)	(26,707)	(18,154)
Income from continuing operations before income taxes and equity in earnings of investees	(18,322)	(13,520)	(35,114)	(25,309)
Income tax expense	(25)	(35)	(43)	(50)
Equity in earnings of investees	374	17	502	94
Income from continuing operations	(17,973)	(13,538)	(34,655)	(25,265)
Net income	(17,973)	$ (13,538)	(34,655)	$ (25,265)
Total assets	$ 87,422		$ 87,422		$ 89,798