Office Properties Income Trust (OPI) 10-Q 3 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 01, 2018
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	Mar. 31, 2018
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		99,148,304
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Real estate properties:
Land	$ 623,610	$ 627,108
Buildings and improvements	2,313,123	2,348,613
Total real estate properties, gross	2,936,733	2,975,721
Accumulated depreciation	(353,329)	(341,848)
Total real estate properties, net	2,583,404	2,633,873
Equity investment in Select Income REIT	465,131	467,499
Investment in unconsolidated joint ventures	48,758	50,202
Assets of properties held for sale	18,080	0
Acquired real estate leases, net	323,710	351,872
Cash and cash equivalents	17,380	16,569
Restricted cash	4,766	3,111
Rents receivable, net	65,539	61,429
Deferred leasing costs, net	22,622	22,977
Other assets, net	106,234	96,033
Total assets	3,655,624	3,703,565
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unsecured revolving credit facility	570,000	570,000
Unsecured term loans, net	548,022	547,852
Senior unsecured notes, net	944,743	944,140
Mortgage notes payable, net	182,083	183,100
Liabilities of properties held for sale	275	0
Accounts payable and other liabilities	74,623	89,440
Due to related persons	8,544	4,859
Assumed real estate lease obligations, net	12,480	13,635
Total liabilities	2,340,770	2,353,026
Commitments and contingencies
Preferred units of limited partnership	20,496	20,496
Shareholders’ equity:
Common shares of beneficial interest, $.01 par value: 150,000,000 shares authorized, 99,145,304 and 99,145,921 shares issued and outstanding, respectively	991	991
Additional paid in capital	1,968,205	1,968,217
Cumulative net income	174,585	108,144
Cumulative other comprehensive income	945	60,427
Cumulative common distributions	(850,368)	(807,736)
Total shareholders’ equity	1,294,358	1,330,043
Total liabilities and shareholders’ equity	$ 3,655,624	$ 3,703,565

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
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	150,000,000
Common shares of beneficial interest, shares issued (in shares)	99,145,304	99,145,921
Common shares of beneficial interest, shares outstanding (in shares)	99,145,304	99,145,921

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Rental income	$ 108,717	$ 69,296
Expenses:
Real estate taxes	12,964	8,177
Utility expenses	6,690	4,606
Other operating expenses	22,837	13,992
Depreciation and amortization	44,204	20,505
Loss on impairment of real estate	6,116	0
General and administrative	9,606	3,962
Total expenses	102,417	51,242
Operating income	6,300	18,054
Dividend income	304	304
Unrealized gain on equity securities	12,931	0
Interest income	116	61
Interest expense (including net amortization of debt premiums and discounts and debt issuance costs of $965 and $807, respectively)	(22,766)	(13,581)
Income from continuing operations before income taxes and equity in earnings of investees	(3,115)	4,838
Income tax expense	(32)	(18)
Equity in earnings of investees	9,712	2,739
Income from continuing operations	6,565	7,559
Loss from discontinued operations	0	(144)
Net income attributed to SIR	6,565	7,415
Other comprehensive income (loss):
Unrealized gain on investment in equity securities	0	12,142
Equity in unrealized gain (loss) of investees	(41)	4,615
Other comprehensive income (loss)	(41)	16,757
Comprehensive income	6,524	24,172
Net income	6,565	7,415
Preferred units of limited partnership distributions	(278)	0
Net income available for common shareholders	$ 6,287	$ 7,415
Weighted average common shares outstanding (basic) (in shares)	99,041	71,079
Weighted average common shares outstanding (diluted) (in shares)	99,049	71,094
Per common share amounts (basic and diluted):
Income from continuing operations (in dollars per share)	$ 0.07	$ 0.11
Loss from discontinued operations (in dollars per share)	0	0
Net income available for common shareholders (in dollars per share)	$ 0.06	$ 0.10

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net amortization of debt premiums and discounts and deferred financing fees	$ 965	$ 807

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 6,565	$ 7,415
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	17,172	11,576
Net amortization of debt premiums and discounts and debt issuance costs	965	807
Straight line rental income	(3,091)	(1,300)
Amortization of acquired real estate leases	26,790	8,672
Amortization of deferred leasing costs	1,120	849
Other non-cash (income) expenses, net	(334)	5
Loss on impairment of real estate	6,116	0
Unrealized gain on equity securities	(12,931)	0
Equity in earnings (losses) of investees, net	(9,712)	(2,739)
Distributions of earnings from Select Income REIT	10,289	2,611
Change in assets and liabilities:
Deferred leasing costs	(2,091)	(1,075)
Rents receivable	(1,893)	(974)
Other assets	2,296	2,215
Accounts payable and accrued expenses	(9,679)	(1,989)
Due to related persons	3,685	152
Net cash provided by operating activities	35,267	26,225
CASH FLOWS FROM INVESTING ACTIVITIES:
Real estate acquisitions and deposits	0	(12,641)
Real estate improvements	(11,020)	(9,656)
Distributions in excess of earnings from Select Income REIT	2,419	10,097
Distributions in excess of earnings from unconsolidated joint ventures	823	0
Proceeds from sale of properties, net	18,797	0
Net cash provided by (used in) investing activities	11,019	(12,200)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of mortgage notes payable	(899)	(379)
Borrowings on unsecured revolving credit facility	25,000	30,000
Repayments on unsecured revolving credit facility	(25,000)	(30,000)
Repurchase of common shares	(11)	0
Preferred units of limited partnership distributions	(278)	0
Distributions to common shareholders	(42,632)	(30,606)
Net cash used in financing activities	(43,820)	(30,985)
Increase (decrease) in cash and cash equivalents and restricted cash	2,466	(16,960)
Cash and cash equivalents and restricted cash at beginning of period	19,680	30,471
Cash and cash equivalents and restricted cash at end of period	$ 22,146	$ 13,511

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - Supplemental Cash Flow - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Supplemental cash flow information
Interest paid	$ 27,733	$ 15,854
Income taxes paid	0	0
Supplemental disclosure of cash and cash equivalents and restricted cash
Cash and cash equivalents	17,380	12,808
Restricted cash	4,766	703
Total cash and cash equivalents and restricted cash reported in the statements of cash flows	$ 22,146	$ 13,511

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2018
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 the Company, 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, 2017 , or our Annual Report. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair statement of results for the interim period 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	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements On January 1, 2018, we adopted the Financial Accounting Standards Board, or FASB, Accounting Standards Update, or ASU, No. 2014-09 (and related clarifying guidance issued by the FASB), 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. A substantial portion of our revenue consists of rental income from leasing arrangements, which is specifically excluded from ASU No. 2014-09. We have adopted ASU No. 2014-09 using the modified retrospective approach, which resulted in an adjustment to reclassify a previous deferred gain on sale of real estate of $712 from accounts payable and other liabilities to cumulative net income. The adoption of ASU No. 2014-09 did not have a material impact on the amount or timing of our revenue recognition in our consolidated financial statements except for profit recognition on real estate sales. On January 1, 2018, we adopted FASB 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. The implementation of ASU No. 2016-01 resulted in the reclassification of historical changes in the fair value of our available for sale equity securities of $45,116 from cumulative other comprehensive income to cumulative net income. We also reclassified $14,325 from cumulative other comprehensive income to cumulative net income for our share of cumulative other comprehensive income of our equity method investee, Select Income REIT, or SIR. Effective January 1, 2018, changes in the fair value of our equity securities are recorded through earnings in accordance with ASU No. 2016-01. On January 1, 2018, we adopted FASB 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 statements of cash flows. The implementation of this update resulted in the reclassification of $736 of accretion recorded in our equity in the earnings of SIR, from cash flow from investing activities to cash flow from operating activities for the three months ended March 31, 2017. See Note 12 for further information regarding our investment in SIR. On January 1, 2018, we adopted FASB ASU No. 2016-18, Restricted Cash , which requires companies to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The implementation of ASU 2016-18 resulted in a decrease of $173 of net cash provided by operating activities for the three months ended March 31, 2017. This update also requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheets. As a result, amounts included in restricted cash on our condensed consolidated balance sheets are included with cash and cash equivalents on the condensed consolidated statements of cash flows. Restricted cash, which consists of amounts escrowed for future real estate taxes, insurance, leasing costs, capital expenditures and debt service, as required by certain of our mortgage debts, totaled $4,766 and $703 as of March 31, 2018 and 2017, respectively. The adoption of this update did not change our balance sheet presentation. 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. We currently expect to adopt the standard using the modified retrospective approach.

Weighted Average Common Shares

Weighted Average Common Shares	3 Months Ended
	Mar. 31, 2018
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 Ended March 31, 2018 2017 Weighted average common shares for basic earnings per share 99,041 71,079 Effect of dilutive securities: unvested share awards 8 15 Weighted average common shares for diluted earnings per share 99,049 71,094

Real Estate Properties

Real Estate Properties	3 Months Ended
	Mar. 31, 2018
Real Estate [Abstract]
Real Estate Properties	Real Estate Properties As of March 31, 2018 , we wholly owned 107 properties ( 166 buildings), with an aggregate undepreciated carrying value of $2,953,770 , and had a noncontrolling ownership interest in two unconsolidated joint ventures that owned two properties ( three buildings). We generally lease space at our properties on a gross lease or modified gross lease basis pursuant to fixed term contracts expiring between 2018 and 2034. 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 March 31, 2018 , we entered into 33 leases for 280,419 rentable square feet, for a weighted (by rentable square feet) average lease term of 5.6 years and we made commitments for $7,998 of leasing related costs. As of March 31, 2018 , we have estimated unspent leasing related obligations of $32,762 . 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 In March 2018, we sold an office property ( one building) located in Minneapolis, MN with 193,594 rentable square feet for $20,000 , excluding closing costs. During the three months ended March 31, 2018 , we recorded a $640 loss on impairment of real estate to reduce the carrying value of this property to its estimated fair value less costs to sell. As of March 31, 2018 , we had two properties ( two buildings) with an aggregate carrying value of $18,080 classified as held for sale in our condensed consolidated balance sheets and included in continuing operations in our condensed consolidated statements of comprehensive income. In February 2018, we entered an agreement to sell one of these office properties ( one building) located in Sacramento, CA with 110,500 rentable square feet for $10,755 , excluding closing costs. This sale is expected to occur in the second quarter of 2018. During the three months ended March 31, 2018 , we recorded a $3,023 loss on impairment of real estate to reduce the carrying value of this property to its estimated fair value less costs to sell. In February 2018, we entered an agreement to sell the second of these office properties ( one building) located in Safford, AZ with 36,139 rentable square feet for $8,250 , excluding closing costs. During the three months ended March 31, 2018 , we recorded a $2,453 loss on impairment of real estate to reduce the carrying value of this property to its estimated fair value less costs to sell. In April 2018, the agreement to sell this property was terminated. In April 2018, we entered an agreement to sell an office property ( one building) located in New York, NY with 187,060 rentable square feet and a net book value of $96,633 at March 31, 2018 for $118,500 , excluding closing costs. This property did not meet the held for sale criteria as of March 31, 2018 . This sale is expected to occur in the second quarter of 2018. As part of our long term plans to reduce our leverage, we expect to sell additional properties. We are marketing or plan to market for sale 23 properties ( 55 buildings) with an aggregate carrying value of $467,677 as of March 31, 2018 . These properties did not meet the held for sale criteria as of March 31, 2018 . We cannot be sure we will sell our properties under agreement or any of our properties that we are marketing or plan to market for sale or sell them for prices in excess of our carrying values or that we will not recognize impairment losses with respect to these properties. In addition, our pending sales are subject to conditions; accordingly, we cannot be sure that we will complete these sales or that these sales will not be delayed or their terms will not change. Pro Forma Financial Information On October 2, 2017, we acquired First Potomac Realty Trust, or FPO, pursuant to a merger transaction, as a result of which we acquired 35 office properties ( 72 buildings) with 6,028,072 rentable square feet and FPO's 50% and 51% interests in two joint ventures that own two properties ( three buildings) with 443,867 rentable square feet, or collectively, the FPO Transaction. The aggregate value we paid at the closing of the FPO Transaction was $1,370,888 . We financed the FPO Transaction with the assumption of certain FPO mortgage debt, borrowings under our revolving credit facility and cash on hand, including net proceeds from our public offerings of common shares and senior unsecured notes. The following table presents our pro forma results of operations for the three months ended March 31, 2017 as if the FPO Transaction and related financing activities had occurred on January 1, 2017. The historical FPO results of operations included in this pro forma financial information have been adjusted to eliminate the results of operations of FPO properties and joint venture interests that were sold from January 1, 2017 to October 2, 2017, the closing date of the FPO Transaction. The effect of these adjustments was a decrease in pro forma rental income of $804 and a decrease in net income of $46,905 for the three months ended March 31, 2017 . This pro forma financial information is not necessarily indicative of what our actual financial position or results of operations would have been for the periods presented or for any future period. Differences could result from numerous factors, including future changes in our portfolio of investments, capital structure, property level operating expenses and revenues, including rents expected to be received on our existing leases or leases we may enter during and after 2018, changes in interest rates and other reasons. Actual future results are likely to be different from amounts presented in this pro forma financial information and such differences could be significant. Three Months Ended March 31, 2017 Rental income $ 110,305 Net loss (4,687 ) Net loss per share $ 0.05 Unconsolidated Joint Ventures We own noncontrolling interests in two joint ventures that own two properties ( three buildings). We account for these investments under the equity method of accounting. As of March 31, 2018 , our investment in unconsolidated joint ventures consisted of the following: Joint Venture GOV Ownership GOV Carrying Value of Investment at March 31, 2018 Property Type Number of Buildings Location Square Feet Prosperity Metro Plaza 51% $ 27,086 Office 2 Fairfax, VA 328,456 1750 H Street, NW 50% 21,672 Office 1 Washington, DC 115,411 Total $ 48,758 3 443,867 The following table provides a summary of the mortgage debt of our unconsolidated joint ventures: Joint Venture Interest Rate (1) Maturity Date Principal Balance at March 31, 2018 (2) Prosperity Metro Plaza 4.09% 12/1/2029 $ 50,000 1750 H Street, NW 3.69% 8/1/2024 32,000 Weighted Average/Total 3.93% $ 82,000 (1) Includes the effect of mark to market purchase accounting. (2) Reflects the entire balance of the debt secured by the properties and is not adjusted to reflect the interests in the joint venture we do not own. None of the debt is recourse to us. At March 31, 2018 , the aggregate $8,811 unamortized basis difference of our unconsolidated joint ventures is primarily attributable to the difference between the amount we paid to purchase our interest in these joint ventures, including transaction costs, and the historical carrying value of the net assets of these joint ventures. This difference is being amortized over the remaining useful life of the properties owned by these joint ventures and the resulting amortization expense is included in equity in earnings of investees in our condensed consolidated statements of comprehensive income.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2018
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 full 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 $3,091 and $1,300 for the three months ended March 31, 2018 and 2017 , respectively. Rents receivable include $29,613 and $27,267 of straight line rent receivables, net of allowance for doubtful accounts of $1,718 and $1,503 at March 31, 2018 and December 31, 2017 , respectively.

Concentration

Concentration	3 Months Ended
	Mar. 31, 2018
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 approximately 63.2% and 87.9% of our annualized rental income as of March 31, 2018 and 2017 , respectively. The U.S. Government is our largest tenant by annualized rental income and was responsible for approximately 44.0% and 60.1% of our annualized rental income as of March 31, 2018 and 2017 , respectively. Geographic Concentration At March 31, 2018 , our 107 wholly owned properties ( 166 buildings) were located in 30 states and the District of Columbia. Consolidated properties located in Virginia, the District of Columbia, Maryland, California and Georgia were responsible for 23.2% , 17.6% , 15.0% , 9.6% and 5.8% of our annualized rental income as of March 31, 2018 , respectively. Consolidated properties located in the metropolitan Washington, D.C. market area were responsible for approximately 43.3% of our annualized rental income as of March 31, 2018 .

Indebtedness

Indebtedness	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Indebtedness	Indebtedness Our principal debt obligations at March 31, 2018 were: (1) $570,000 of outstanding borrowings under our $750,000 unsecured revolving credit facility; (2) $550,000 aggregate outstanding principal amount of unsecured term loans; (3) $960,000 aggregate outstanding principal amount of senior unsecured notes; and (4) $182,248 aggregate outstanding 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, or our credit agreement, with a syndicate of institutional lenders that includes a number of features common to all of these credit arrangements. Our 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 March 31, 2018 , 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 March 31, 2018 . Both the interest rate premium and the facility fee are subject to adjustment based upon changes to our credit ratings. As of March 31, 2018 , the annual interest rate payable on borrowings under our revolving credit facility was 3.0% and the weighted average annual interest rate for borrowings under our revolving credit facility was 2.8% and 2.0% for the three months ended March 31, 2018 and 2017 , respectively. As of March 31, 2018 and May 1, 2018 , we had $570,000 and $580,000 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 March 31, 2018 , 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 March 31, 2018 , the annual interest rate for the amount outstanding under our $300,000 term loan was 3.3% . The weighted average annual interest rate under our $300,000 term loan was 3.0% and 2.2% for the three months ended March 31, 2018 and 2017 , 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 March 31, 2018 , 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 March 31, 2018 , the annual interest rate for the amount outstanding under our $250,000 term loan was 3.7% . The weighted average annual interest rate under our $250,000 term loan was 3.4% and 2.6% for the three months ended March 31, 2018 and 2017 , respectively. Our credit agreement and senior unsecured notes indentures and their supplements provide for acceleration of payment of all amounts due thereunder upon the occurrence and continuation of certain events of default, such as, in the case of our 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 unsecured 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 unsecured notes indentures and their supplements at March 31, 2018 . At March 31, 2018 , eight of our consolidated properties ( eight buildings) with an aggregate net book value of $426,404 were encumbered by eight mortgages for an aggregate principal amount of $182,248 . Our mortgage notes are non-recourse, subject to certain limited exceptions and do not contain any material financial covenants.

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 , 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 Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description Total (Level 1) (Level 2) (Level 3) Recurring Fair Value Measurements Assets: Investment in RMR Inc. (1) $ 84,935 $ 84,935 $ — $ — Non-Recurring Fair Value Measurements Assets: Properties held for sale (2) $ 18,080 $ — $ 18,080 $ — (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 as defined in the fair value hierarchy under GAAP). Our historical cost basis for these shares is $26,888 as of March 31, 2018 . During the three months ended March 31, 2018 , we recorded an unrealized gain of $12,931 to adjust the carrying value of our investment in RMR Inc. shares to their fair value. (2) We estimated the fair value of two properties ( two buildings) held for sale at March 31, 2018 based upon negotiated sale agreements with third parties less estimated sale costs (Level 2 inputs as defined in the fair value hierarchy under GAAP). See Note 4 for further details. In addition to the assets described in the table above, our financial instruments include our cash and cash equivalents, restricted cash, rents receivable, mortgage notes receivable, accounts payable, revolving credit facility, term loans, senior unsecured notes, mortgage notes payable, amounts due to related persons, other accrued expenses and security deposits. At March 31, 2018 and December 31, 2017 , 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 March 31, 2018 As of December 31, 2017 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Senior unsecured notes, 3.75% interest rate, due in 2019 $ 348,381 $ 351,673 $ 348,096 $ 354,993 Senior unsecured notes, 5.875% interest rate, due in 2046 300,318 314,464 300,232 320,416 Senior unsecured notes, 4.000% interest rate, due in 2022 296,044 301,044 295,812 302,655 Mortgage note payable, 4.050% interest rate, due in 2030 (2) 64,343 63,918 64,293 65,198 Mortgage note payable, 5.720% interest rate, due in 2020 (2) 35,786 35,812 36,085 36,332 Mortgage note payable, 4.220% interest rate, due in 2022 (2) 27,742 28,081 27,906 28,432 Mortgage note payable, 4.800% interest rate, due in 2023 (2) 25,394 25,488 25,501 25,904 Mortgage note payable, 5.877% interest rate, due in 2021 (2) 13,560 14,345 13,620 14,565 Mortgage note payable, 7.000% interest rate, due in 2019 (2) 8,291 8,410 8,391 8,555 Mortgage note payable, 8.150% interest rate, due in 2021 (2) 3,823 4,014 4,111 4,340 Mortgage note payable, 4.260% interest rate, due in 2020 (2) 3,144 3,151 3,193 3,216 $ 1,126,826 $ 1,150,400 $ 1,127,240 $ 1,164,606 (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 and due 2022 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, as of the measurement date (Level 1 inputs as defined in the fair value hierarchy under GAAP). 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	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Shareholders' Equity	Shareholders’ Equity Share Awards On April 3, 2018, in accordance with our Trustee compensation arrangements, we granted 3,000 of our common shares, valued at $13.59 per share, the closing price of our common shares on Nasdaq on that day, to our Managing Trustee, who was elected as a Managing Trustee that day. Share Purchases On January 1, 2018, we purchased 617 of our common shares valued at a price per share of $18.54 , the closing price of our common shares on Nasdaq on December 29, 2017, from a former employee of RMR LLC in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares. Distributions On February 26, 2018, we paid a regular quarterly distribution to common shareholders of record on January 29, 2018 of $0.43 per share, or $42,632 . On April 19, 2018, we declared a regular quarterly distribution payable to common shareholders of record on April 30, 2018 of $0.43 per share, or $42,634 . We expect to pay this distribution on or about May 21, 2018 using cash on hand and borrowings under our revolving credit facility. Cumulative Other Comprehensive Income Cumulative other comprehensive income represents our share of the comprehensive income of our equity method investees, SIR and Affiliates Insurance Company, or AIC. See Notes 11 and 12 for further information regarding these investments. The following table presents changes in the amounts we recognized in cumulative other comprehensive income by component for the three months ended March 31, 2018 : Three Months Ended March 31, 2018 Unrealized Gain Equity in on Investment Unrealized in Equity Gain (Loss) Securities of Investees Total Balance at December 31, 2017 $ 45,116 $ 15,311 $ 60,427 Amounts reclassified from cumulative other comprehensive income to cumulative net income (45,116 ) (14,325 ) (59,441 ) Other comprehensive loss before reclassifications — (22 ) (22 ) Amounts reclassified from cumulative other comprehensive income to net income (1) — (19 ) (19 ) Net current period other comprehensive loss — (41 ) (41 ) Balance at March 31, 2018 $ — $ 945 $ 945 (1) Amounts reclassified from cumulative other comprehensive loss to net income are included in equity in earnings of investees in our condensed consolidated statements of comprehensive income. Temporary Equity As of March 31, 2018 and December 31, 2017, one of our subsidiaries had 1,813,504 of 5.5% Series A Cumulative Preferred Units, or Preferred Units, outstanding. The $20,496 carrying value of these Preferred Units is recorded as temporary equity on our condensed consolidated balance sheets. On May 1, 2018, our subsidiary redeemed all of the outstanding Preferred Units for $11.15 per unit plus accrued and unpaid distributions (an aggregate of $20,310 ), using cash on hand and borrowings under our revolving credit facility.

Business and Property Managemen

Business and Property Management Agreements with RMR LLC	3 Months Ended
	Mar. 31, 2018
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 $7,309 and $2,704 for the three months ended March 31, 2018 and 2017 , respectively. The net business management fees payable to RMR LLC for the three months ended March 31, 2018 include estimated 2018 incentive fees of $2,887 based on our common share total return, as defined, as of March 31, 2018. Although we recognized estimated incentive fees in accordance with GAAP, the actual amount of incentive fees payable to RMR LLC for 2018, if any, will be based on our common share total return, as defined, for the three year period ending December 31, 2018, and will be payable in 2019. No incentive management fee was payable for the year ended December 31, 2017. These amounts 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 $3,349 and $2,466 for the three months ended March 31, 2018 and 2017 , 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 $4,969 and $3,391 for property management related expenses for the three months ended March 31, 2018 and 2017 , 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 $69 and $67 for the three months ended March 31, 2018 and 2017 , respectively, which amounts are included in general and administrative expenses in our condensed consolidated statements of comprehensive income.

Related Person Transactions

Related Person Transactions	3 Months Ended
	Mar. 31, 2018
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 or its subsidiaries provide management services and which have trustees, directors and officers who are also our Trustees or officers. Our Manager, RMR LLC. We have two agreements with RMR LLC to provide management services to us. See Note 10 for further information regarding our management agreements with RMR LLC. Leases with RMR LLC. We lease office space to RMR LLC in certain of our properties for RMR LLC's property management offices. We recognized rental income from RMR LLC for leased office space of $218 and $92 for the three months ended March 31, 2018 and 2017, respectively. Our office space leases with RMR LLC are terminable by RMR LLC if our management agreements with RMR LLC are terminated. RMR Inc. RMR LLC is a majority owned subsidiary of RMR Inc. and RMR Inc. is the managing member of RMR LLC. Adam D. Portnoy, one of our Managing Trustees, is the sole trustee of ABP Trust, the controlling shareholder of RMR Inc., and is a managing director, president and chief executive officer of RMR Inc., an officer of ABP Trust and RMR LLC and a managing trustee or managing director of all of the public companies to which RMR LLC or its subsidiaries provide management services. Mark L. Kleifges, our other Managing Trustee, also serves as an executive officer of RMR LLC. As of March 31, 2018 , 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 . We are SIR’s largest shareholder. As of March 31, 2018 , we owned 24,918,421 of SIR's common shares, or approximately 27.8% of its outstanding common shares. Adam D. Portnoy, one of our Managing Trustees, also serves as a managing trustee of SIR, and our President and Chief Operating Officer also serves as a managing trustee and 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, ABP Trust, SIR and four other companies to which RMR LLC provides management services currently own AIC in equal amounts. We and the other AIC shareholders participate in a combined property insurance program arranged and reinsured in part by AIC. As of March 31, 2018 and December 31, 2017, our investment in AIC had a carrying value of $8,255 and $8,304 , respectively. These amounts are included in other assets in our condensed consolidated balance sheets. We recognized income related to our investment in AIC, which is 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 on securities which are owned by AIC related to our investment in AIC. For further information about these and other such relationships and certain other related person transactions, refer to our Annual Report.

Equity Investment in Select Inc

Equity Investment in Select Income REIT	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 , we owned 24,918,421 , or approximately 27.8% , of the then outstanding SIR common shares. SIR is a real estate investment trust that owns properties that are primarily net 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 investees in our condensed consolidated statements of comprehensive income. During the three months ended March 31, 2018 and 2017 , we recorded $10,289 and $2,611 of equity in the earnings of SIR, respectively. Our other comprehensive income includes our proportionate share of SIR’s unrealized gains of $51 and $4,492 for the three months ended March 31, 2018 and 2017 , 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 March 31, 2018 and December 31, 2017, our basis difference was $122,579 and $87,137 , respectively, 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. The increase in the basis difference primarily relates to SIR's capital finance activities and changes in its net equity during the three months ended March 31, 2018 . This accretion increased our equity in the earnings of SIR by $1,044 and $736 for the three months ended March 31, 2018 and 2017 , respectively. As of March 31, 2018 , our investment in SIR had a carrying value of $465,131 and a market value, based on the closing price of SIR common shares on Nasdaq on March 31, 2018, of $485,411 . 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. During each of the three months ended March 31, 2018 and 2017 , we received aggregate cash distributions from SIR totaling $12,708 . The following presents summarized financial data of SIR as reported in SIR’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 , 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 March 31, December 31, 2018 2017 Real estate properties, net $ 3,888,100 $ 3,905,616 Acquired real estate leases, net 461,577 477,577 Properties held for sale 5,829 5,829 Cash and cash equivalents 30,884 658,719 Rents receivable, net 131,445 127,672 Other assets, net 151,174 127,617 Total assets $ 4,669,009 $ 5,303,030 Unsecured revolving credit facility $ 107,000 $ — Industrial Logistics Properties Trust revolving credit facility 302,000 750,000 Unsecured term loan, net — 348,870 Senior unsecured notes, net 1,428,571 1,777,425 Mortgage notes payable, net 210,749 210,785 Assumed real estate lease obligations, net 66,577 68,783 Other liabilities 125,668 155,348 Total shareholders' equity attributable to SIR 2,110,595 1,991,819 Noncontrolling interest in consolidated subsidiary 317,849 — Total liabilities and shareholders' equity $ 4,669,009 $ 5,303,030 Condensed Consolidated Statements of Income Three Months Ended March 31, 2018 2017 Rental income $ 99,755 $ 97,344 Tenant reimbursements and other income 20,874 18,950 Total revenues 120,629 116,294 Real estate taxes 11,788 10,843 Other operating expenses 15,282 12,867 Depreciation and amortization 34,946 33,740 General and administrative 13,941 14,901 Write-off of straight line rents receivable, net — 12,517 Loss on asset impairment — 4,047 Total expenses 75,957 88,915 Operating income 44,672 27,379 Dividend income 397 397 Unrealized gain on equity securities 16,900 — Interest income 510 13 Interest expense (23,492 ) (21,087 ) Loss on early extinguishment of debt (1,192 ) — Income before income tax expense and equity in earnings of an investee 37,795 6,702 Income tax expense (160 ) (102 ) Equity in earnings of an investee 44 128 Net income 37,679 6,728 Net income allocated to noncontrolling interest (4,479 ) — Net income attributed to SIR $ 33,200 $ 6,728 Weighted average common shares outstanding (basic) 89,382 89,331 Weighted average common shares outstanding (diluted) $ 89,390 $ 89,348 Net income attributed to SIR per common share (basic and diluted) $ 0.37 $ 0.08

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Segment Information	Segment Information We operate in two separate reportable business segments: ownership of real estate properties and our equity method investment in SIR. Three Months Ended March 31, 2018 Investment Investment in Real Estate in SIR Corporate Consolidated Rental income $ 108,717 $ — $ — $ 108,717 Expenses: Real estate taxes 12,964 — — 12,964 Utility expenses 6,690 — — 6,690 Other operating expenses 22,837 — — 22,837 Depreciation and amortization 44,204 — — 44,204 Loss on impairment of real estate 6,116 — — 6,116 General and administrative — — 9,606 9,606 Total expenses 92,811 — 9,606 102,417 Operating income (loss) 15,906 — (9,606 ) 6,300 Dividend income — — 304 304 Unrealized gain on equity securities — 12,931 12,931 Interest income 57 — 59 116 Interest expense (2,096 ) — (20,670 ) (22,766 ) Income (loss) from continuing operations before income taxes and equity in earnings (losses) of investees 13,867 — (16,982 ) (3,115 ) Income tax expense — — (32 ) (32 ) Equity in earnings (losses) of investees (621 ) 10,289 44 9,712 Net income (loss) $ 13,246 $ 10,289 $ (16,970 ) $ 6,565 Preferred units of limited partnership distributions — — (278 ) (278 ) Net income (loss) available for common shareholders $ 13,246 $ 10,289 $ (17,248 ) $ 6,287 As of March 31, 2018 Investment Investment in Real Estate in SIR Corporate Consolidated Total Assets $ 3,078,889 $ 465,131 $ 111,604 $ 3,655,624 Three Months Ended March 31, 2017 Investment Investment in Real Estate in SIR Corporate Consolidated Rental income $ 69,296 $ — $ — $ 69,296 Expenses: Real estate taxes 8,177 — — 8,177 Utility expenses 4,606 — — 4,606 Other operating expenses 13,992 — — 13,992 Depreciation and amortization 20,505 — — 20,505 General and administrative — — 3,962 3,962 Total expenses 47,280 — 3,962 51,242 Operating income (loss) 22,016 — (3,962 ) 18,054 Dividend income — — 304 304 Interest income 46 — 15 61 Interest expense (432 ) — (13,149 ) (13,581 ) Income (loss) from continuing operations before income taxes and equity in earnings of investees 21,630 — (16,792 ) 4,838 Income tax expense — — (18 ) (18 ) Equity in earnings of investees — 2,611 128 2,739 Income (loss) from continuing operations 21,630 2,611 (16,682 ) 7,559 Loss from discontinued operations (144 ) — — (144 ) Net income (loss) available for common shareholders $ 21,486 $ 2,611 $ (16,682 ) $ 7,415 As of December 31, 2017 Investment Investment in Real Estate in SIR Corporate Consolidated Total Assets $ 3,138,764 $ 467,499 $ 97,302 $ 3,703,565

Recent Accounting Pronounceme21

Recent Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements On January 1, 2018, we adopted the Financial Accounting Standards Board, or FASB, Accounting Standards Update, or ASU, No. 2014-09 (and related clarifying guidance issued by the FASB), 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. A substantial portion of our revenue consists of rental income from leasing arrangements, which is specifically excluded from ASU No. 2014-09. We have adopted ASU No. 2014-09 using the modified retrospective approach, which resulted in an adjustment to reclassify a previous deferred gain on sale of real estate of $712 from accounts payable and other liabilities to cumulative net income. The adoption of ASU No. 2014-09 did not have a material impact on the amount or timing of our revenue recognition in our consolidated financial statements except for profit recognition on real estate sales. On January 1, 2018, we adopted FASB 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. The implementation of ASU No. 2016-01 resulted in the reclassification of historical changes in the fair value of our available for sale equity securities of $45,116 from cumulative other comprehensive income to cumulative net income. We also reclassified $14,325 from cumulative other comprehensive income to cumulative net income for our share of cumulative other comprehensive income of our equity method investee, Select Income REIT, or SIR. Effective January 1, 2018, changes in the fair value of our equity securities are recorded through earnings in accordance with ASU No. 2016-01. On January 1, 2018, we adopted FASB 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 statements of cash flows. The implementation of this update resulted in the reclassification of $736 of accretion recorded in our equity in the earnings of SIR, from cash flow from investing activities to cash flow from operating activities for the three months ended March 31, 2017. See Note 12 for further information regarding our investment in SIR. On January 1, 2018, we adopted FASB ASU No. 2016-18, Restricted Cash , which requires companies to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The implementation of ASU 2016-18 resulted in a decrease of $173 of net cash provided by operating activities for the three months ended March 31, 2017. This update also requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheets. As a result, amounts included in restricted cash on our condensed consolidated balance sheets are included with cash and cash equivalents on the condensed consolidated statements of cash flows. Restricted cash, which consists of amounts escrowed for future real estate taxes, insurance, leasing costs, capital expenditures and debt service, as required by certain of our mortgage debts, totaled $4,766 and $703 as of March 31, 2018 and 2017, respectively. The adoption of this update did not change our balance sheet presentation. 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. We currently expect to adopt the standard using the modified retrospective approach.

Weighted Average Common Shares

Weighted Average Common Shares (Tables)	3 Months Ended
	Mar. 31, 2018
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 Ended March 31, 2018 2017 Weighted average common shares for basic earnings per share 99,041 71,079 Effect of dilutive securities: unvested share awards 8 15 Weighted average common shares for diluted earnings per share 99,049 71,094

Real Estate Properties (Tables)

Real Estate Properties (Tables)	3 Months Ended
	Mar. 31, 2018
Real Estate [Abstract]
Schedule of Pro Forma Information	The following table presents our pro forma results of operations for the three months ended March 31, 2017 as if the FPO Transaction and related financing activities had occurred on January 1, 2017. The historical FPO results of operations included in this pro forma financial information have been adjusted to eliminate the results of operations of FPO properties and joint venture interests that were sold from January 1, 2017 to October 2, 2017, the closing date of the FPO Transaction. The effect of these adjustments was a decrease in pro forma rental income of $804 and a decrease in net income of $46,905 for the three months ended March 31, 2017 . This pro forma financial information is not necessarily indicative of what our actual financial position or results of operations would have been for the periods presented or for any future period. Differences could result from numerous factors, including future changes in our portfolio of investments, capital structure, property level operating expenses and revenues, including rents expected to be received on our existing leases or leases we may enter during and after 2018, changes in interest rates and other reasons. Actual future results are likely to be different from amounts presented in this pro forma financial information and such differences could be significant. Three Months Ended March 31, 2017 Rental income $ 110,305 Net loss (4,687 ) Net loss per share $ 0.05
Schedule of Joint Ventures	As of March 31, 2018 , our investment in unconsolidated joint ventures consisted of the following: Joint Venture GOV Ownership GOV Carrying Value of Investment at March 31, 2018 Property Type Number of Buildings Location Square Feet Prosperity Metro Plaza 51% $ 27,086 Office 2 Fairfax, VA 328,456 1750 H Street, NW 50% 21,672 Office 1 Washington, DC 115,411 Total $ 48,758 3 443,867 The following table provides a summary of the mortgage debt of our unconsolidated joint ventures: Joint Venture Interest Rate (1) Maturity Date Principal Balance at March 31, 2018 (2) Prosperity Metro Plaza 4.09% 12/1/2029 $ 50,000 1750 H Street, NW 3.69% 8/1/2024 32,000 Weighted Average/Total 3.93% $ 82,000 (1) Includes the effect of mark to market purchase accounting. (2) Reflects the entire balance of the debt secured by the properties and is not adjusted to reflect the interests in the joint venture we do not own. None of the debt is recourse to us.

Fair Value of Assets and Liab24

Fair Value of Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 , 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 Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description Total (Level 1) (Level 2) (Level 3) Recurring Fair Value Measurements Assets: Investment in RMR Inc. (1) $ 84,935 $ 84,935 $ — $ — Non-Recurring Fair Value Measurements Assets: Properties held for sale (2) $ 18,080 $ — $ 18,080 $ — (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 as defined in the fair value hierarchy under GAAP). Our historical cost basis for these shares is $26,888 as of March 31, 2018 . During the three months ended March 31, 2018 , we recorded an unrealized gain of $12,931 to adjust the carrying value of our investment in RMR Inc. shares to their fair value. (2) We estimated the fair value of two properties ( two buildings) held for sale at March 31, 2018 based upon negotiated sale agreements with third parties less estimated sale costs (Level 2 inputs as defined in the fair value hierarchy under GAAP). See Note 4 for further details.
Schedule of fair value and carrying value of financial instruments	At March 31, 2018 and December 31, 2017 , 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 March 31, 2018 As of December 31, 2017 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Senior unsecured notes, 3.75% interest rate, due in 2019 $ 348,381 $ 351,673 $ 348,096 $ 354,993 Senior unsecured notes, 5.875% interest rate, due in 2046 300,318 314,464 300,232 320,416 Senior unsecured notes, 4.000% interest rate, due in 2022 296,044 301,044 295,812 302,655 Mortgage note payable, 4.050% interest rate, due in 2030 (2) 64,343 63,918 64,293 65,198 Mortgage note payable, 5.720% interest rate, due in 2020 (2) 35,786 35,812 36,085 36,332 Mortgage note payable, 4.220% interest rate, due in 2022 (2) 27,742 28,081 27,906 28,432 Mortgage note payable, 4.800% interest rate, due in 2023 (2) 25,394 25,488 25,501 25,904 Mortgage note payable, 5.877% interest rate, due in 2021 (2) 13,560 14,345 13,620 14,565 Mortgage note payable, 7.000% interest rate, due in 2019 (2) 8,291 8,410 8,391 8,555 Mortgage note payable, 8.150% interest rate, due in 2021 (2) 3,823 4,014 4,111 4,340 Mortgage note payable, 4.260% interest rate, due in 2020 (2) 3,144 3,151 3,193 3,216 $ 1,126,826 $ 1,150,400 $ 1,127,240 $ 1,164,606 (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)	3 Months Ended
	Mar. 31, 2018
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 by component for the three months ended March 31, 2018 : Three Months Ended March 31, 2018 Unrealized Gain Equity in on Investment Unrealized in Equity Gain (Loss) Securities of Investees Total Balance at December 31, 2017 $ 45,116 $ 15,311 $ 60,427 Amounts reclassified from cumulative other comprehensive income to cumulative net income (45,116 ) (14,325 ) (59,441 ) Other comprehensive loss before reclassifications — (22 ) (22 ) Amounts reclassified from cumulative other comprehensive income to net income (1) — (19 ) (19 ) Net current period other comprehensive loss — (41 ) (41 ) Balance at March 31, 2018 $ — $ 945 $ 945 (1) Amounts reclassified from cumulative other comprehensive loss to net income are included in equity in earnings of investees in our condensed consolidated statements of comprehensive income.

Equity Investment in Select I26

Equity Investment in Select Income REIT (Tables) - SIR	3 Months Ended
	Mar. 31, 2018
Schedule Of Summarized Balance Sheet Information Of Equity Method Investee	Condensed Consolidated Balance Sheets March 31, December 31, 2018 2017 Real estate properties, net $ 3,888,100 $ 3,905,616 Acquired real estate leases, net 461,577 477,577 Properties held for sale 5,829 5,829 Cash and cash equivalents 30,884 658,719 Rents receivable, net 131,445 127,672 Other assets, net 151,174 127,617 Total assets $ 4,669,009 $ 5,303,030 Unsecured revolving credit facility $ 107,000 $ — Industrial Logistics Properties Trust revolving credit facility 302,000 750,000 Unsecured term loan, net — 348,870 Senior unsecured notes, net 1,428,571 1,777,425 Mortgage notes payable, net 210,749 210,785 Assumed real estate lease obligations, net 66,577 68,783 Other liabilities 125,668 155,348 Total shareholders' equity attributable to SIR 2,110,595 1,991,819 Noncontrolling interest in consolidated subsidiary 317,849 — Total liabilities and shareholders' equity $ 4,669,009 $ 5,303,030
Schedule Of Summarized Income Statement Information Of Equity Method Investee	Condensed Consolidated Statements of Income Three Months Ended March 31, 2018 2017 Rental income $ 99,755 $ 97,344 Tenant reimbursements and other income 20,874 18,950 Total revenues 120,629 116,294 Real estate taxes 11,788 10,843 Other operating expenses 15,282 12,867 Depreciation and amortization 34,946 33,740 General and administrative 13,941 14,901 Write-off of straight line rents receivable, net — 12,517 Loss on asset impairment — 4,047 Total expenses 75,957 88,915 Operating income 44,672 27,379 Dividend income 397 397 Unrealized gain on equity securities 16,900 — Interest income 510 13 Interest expense (23,492 ) (21,087 ) Loss on early extinguishment of debt (1,192 ) — Income before income tax expense and equity in earnings of an investee 37,795 6,702 Income tax expense (160 ) (102 ) Equity in earnings of an investee 44 128 Net income 37,679 6,728 Net income allocated to noncontrolling interest (4,479 ) — Net income attributed to SIR $ 33,200 $ 6,728 Weighted average common shares outstanding (basic) 89,382 89,331 Weighted average common shares outstanding (diluted) $ 89,390 $ 89,348 Net income attributed to SIR per common share (basic and diluted) $ 0.37 $ 0.08

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Schedule of Segment Information	Three Months Ended March 31, 2018 Investment Investment in Real Estate in SIR Corporate Consolidated Rental income $ 108,717 $ — $ — $ 108,717 Expenses: Real estate taxes 12,964 — — 12,964 Utility expenses 6,690 — — 6,690 Other operating expenses 22,837 — — 22,837 Depreciation and amortization 44,204 — — 44,204 Loss on impairment of real estate 6,116 — — 6,116 General and administrative — — 9,606 9,606 Total expenses 92,811 — 9,606 102,417 Operating income (loss) 15,906 — (9,606 ) 6,300 Dividend income — — 304 304 Unrealized gain on equity securities — 12,931 12,931 Interest income 57 — 59 116 Interest expense (2,096 ) — (20,670 ) (22,766 ) Income (loss) from continuing operations before income taxes and equity in earnings (losses) of investees 13,867 — (16,982 ) (3,115 ) Income tax expense — — (32 ) (32 ) Equity in earnings (losses) of investees (621 ) 10,289 44 9,712 Net income (loss) $ 13,246 $ 10,289 $ (16,970 ) $ 6,565 Preferred units of limited partnership distributions — — (278 ) (278 ) Net income (loss) available for common shareholders $ 13,246 $ 10,289 $ (17,248 ) $ 6,287 As of March 31, 2018 Investment Investment in Real Estate in SIR Corporate Consolidated Total Assets $ 3,078,889 $ 465,131 $ 111,604 $ 3,655,624 Three Months Ended March 31, 2017 Investment Investment in Real Estate in SIR Corporate Consolidated Rental income $ 69,296 $ — $ — $ 69,296 Expenses: Real estate taxes 8,177 — — 8,177 Utility expenses 4,606 — — 4,606 Other operating expenses 13,992 — — 13,992 Depreciation and amortization 20,505 — — 20,505 General and administrative — — 3,962 3,962 Total expenses 47,280 — 3,962 51,242 Operating income (loss) 22,016 — (3,962 ) 18,054 Dividend income — — 304 304 Interest income 46 — 15 61 Interest expense (432 ) — (13,149 ) (13,581 ) Income (loss) from continuing operations before income taxes and equity in earnings of investees 21,630 — (16,792 ) 4,838 Income tax expense — — (18 ) (18 ) Equity in earnings of investees — 2,611 128 2,739 Income (loss) from continuing operations 21,630 2,611 (16,682 ) 7,559 Loss from discontinued operations (144 ) — — (144 ) Net income (loss) available for common shareholders $ 21,486 $ 2,611 $ (16,682 ) $ 7,415 As of December 31, 2017 Investment Investment in Real Estate in SIR Corporate Consolidated Total Assets $ 3,138,764 $ 467,499 $ 97,302 $ 3,703,565

Recent Accounting Pronounceme28

Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred gain on sale of real estate			$ 712
Unrealized gain on investment in equity securities	$ 0	$ 12,142
Equity in earnings of investees	9,712	2,739
Decrease in cash provided by operating activities	(35,267)	(26,225)
Restricted cash	4,766	703	3,111
ASU 2016-01 | Other Comprehensive Income (Loss)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Unrealized gain on investment in equity securities			45,116
ASU 2016-15
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accretion in equity of earnings	$ (736)
ASU 2016-18
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease in cash provided by operating activities		$ 173
Equity Method Investee, Select Income REIT, or SIR | ASU 2016-01 | Other Comprehensive Income (Loss)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity in earnings of investees			$ 14,325

Weighted Average Common Share29

Weighted Average Common Shares (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share, Basic and Diluted [Abstract]
Weighted average common shares for basic earnings per share (in shares)	99,041	71,079
Effect of dilutive securities: unvested share awards (in shares)	8	15
Weighted average common shares for diluted earnings per share (in shares)	99,049	71,094

Real Estate Properties - Additi

Real Estate Properties - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)ft²leasebuildingjoint_ventureproperty
Real Estate Properties [Line Items]
Number of properties owned | property	107
Number of buildings | building	166
Number of joint ventures | joint_venture	2
Number of properties, noncontrolling interest | property	2
Number of buildings, noncontrolling interest | building	3
Number of leases entered | lease	33
Rentable square feet (in sqft) | ft²	280,419
Weighted average lease term	5 years 7 months 6 days
Expenditures committed on leases | $	$ 7,998
Committed but unspent tenant related obligations estimated | $	$ 32,762
Continuing operations
Real Estate Properties [Line Items]
Number of properties owned | property	107
Number of buildings | building	166
Carry value of properties | $	$ 2,953,770

Real Estate Properties - Dispos

Real Estate Properties - Disposition Activities (Details) $ in Thousands	1 Months Ended			3 Months Ended
	Apr. 30, 2018USD ($)ft²buildingproperty	Mar. 31, 2018USD ($)ft²buildingproperty	Feb. 28, 2018USD ($)ft²buildingproperty	Mar. 31, 2018USD ($)ft²buildingproperty	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Real Estate Properties [Line Items]
Number of properties | property		107		107
Number of buildings | building		166		166
Number of assets held for sale | property				2
Assets of properties held for sale		$ 18,080		$ 18,080		$ 0
Loss on impairment of real estate				6,116	$ 0
Net book value		$ 2,583,404		$ 2,583,404		$ 2,633,873
Office Building
Real Estate Properties [Line Items]
Number of buildings | building		2		2
Office Building | Disposal Group, Disposed of by Sale | Minneapolis, NM | One building
Real Estate Properties [Line Items]
Number of properties | property		1		1
Number of buildings | building		1		1
Rentable area of properties (in square feet) | ft²		193,594		193,594
Aggregate sale price of properties sold, excluding closing costs		$ 20,000
Loss on impairment of real estate				$ 640
Office Building | Disposal Group, Disposed of by Sale | Sacramento, CA | One building
Real Estate Properties [Line Items]
Number of properties | property			1
Number of buildings | building			1
Rentable area of properties (in square feet) | ft²			110,500
Aggregate sale price of properties sold, excluding closing costs			$ 10,755
Loss on impairment of real estate				3,023
Office Building | Disposal Group, Disposed of by Sale | Safford, AZ | One building
Real Estate Properties [Line Items]
Number of properties | property			1
Number of buildings | building			1
Rentable area of properties (in square feet) | ft²			36,139
Aggregate sale price of properties sold, excluding closing costs			$ 8,250
Loss on impairment of real estate				$ 2,453
Subsequent Event | Office Building | Disposal Group, Disposed of by Sale | New York, NY | One building
Real Estate Properties [Line Items]
Number of properties | property	1
Number of buildings | building	1
Rentable area of properties (in square feet) | ft²	187,060
Aggregate sale price of properties sold, excluding closing costs	$ 118,500
Net book value	$ 96,633
FPO Transaction | Disposal Group, Disposed of by Sale
Real Estate Properties [Line Items]
Number of properties | property		23		23
Number of buildings | building		55		55
Net book value		$ 467,677		$ 467,677

Real Estate Properties - FPO Tr

Real Estate Properties - FPO Transaction (Details) $ in Thousands	Oct. 02, 2017USD ($)ft²buildingjoint_ventureproperty	Mar. 31, 2018buildingjoint_ventureproperty
Business Acquisition [Line Items]
Number of joint ventures | joint_venture		2
Number of properties owned | property		107
Number of buildings | building		166
First Potomac Realty Trust
Business Acquisition [Line Items]
Number of properties acquired | property	35
Number of buildings acquired | building	72
Rentable area of properties (in square feet) | ft²	6,028,072
Purchase price | $	$ 1,370,888
First Potomac Realty Trust
Business Acquisition [Line Items]
Number of joint ventures | joint_venture	2
Number of properties owned | property	2
Number of buildings | building	3
First Potomac Realty Trust | First Potomac Realty Trust
Business Acquisition [Line Items]
Rentable area of properties (in square feet) | ft²	443,867
Joint Venture Property 1 | First Potomac Realty Trust
Business Acquisition [Line Items]
Percentage of ownership interest	50.00%
Joint Venture Property 2 | First Potomac Realty Trust
Business Acquisition [Line Items]
Percentage of ownership interest	51.00%

Real Estate Properties - Pro Fo

Real Estate Properties - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Rental income	$ 110,305
Net income (loss)	$ (4,687)
Net income (loss) per share (in dollars per share)	$ 0.05
Acquisition-related costs
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Decrease in revenues		$ 804
Decrease in net income		$ 46,905

Real Estate Properties - Schedu

Real Estate Properties - Schedule of Joint Ventures (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)ft²buildingjoint_ventureproperty	Dec. 31, 2017USD ($)
Real Estate [Line Items]
Number of joint ventures | joint_venture	2
Number of properties owned | property	107
Investment at carrying value	$ 465,131	$ 467,499
Number of buildings | building	166
Unconsolidated Joint Ventures
Real Estate [Line Items]
Investment at carrying value	$ 48,758
Number of buildings | building	3
Square Feet (in square feet) | ft²	443,867
Interest rate (as a percent)	3.9339%
Principal Balance	$ 82,000
Unamortized basis difference	$ 8,811
Unconsolidated Joint Ventures | Prosperity Metro Plaza
Real Estate [Line Items]
GOV Ownership	51.00%
Investment at carrying value	$ 27,086
Number of buildings | building	2
Square Feet (in square feet) | ft²	328,456
Interest rate (as a percent)	4.09%
Principal Balance	$ 50,000
Unconsolidated Joint Ventures | 1750 H Street, NW
Real Estate [Line Items]
GOV Ownership	50.00%
Investment at carrying value	$ 21,672
Number of buildings | building	1
Square Feet (in square feet) | ft²	115,411
Interest rate (as a percent)	3.69%
Principal Balance	$ 32,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Revenue Recognition [Abstract]
Increase in rental income to record revenue on straight line basis	$ 3,091	$ 1,300
Straight line rent receivables	29,613		$ 27,267
Allowance for doubtful accounts	$ 1,718		$ 1,503

Concentration (Details)

Concentration (Details)	3 Months Ended
	Mar. 31, 2018buildinggovernment_tenantstate_governmentstateproperty	Mar. 31, 2017
Concentration
Number of state governments | state_government	13
Number of other governments | government_tenant	4
Number of properties | property	107
Number of buildings | building	166
Number of states in which acquired properties located | state	30
Annualized rental income, excluding properties classified as discontinued operations | Virginia
Concentration
Annualized Rental income percent	23.20%
Annualized rental income, excluding properties classified as discontinued operations | District of Columbia
Concentration
Annualized Rental income percent	17.60%
Annualized rental income, excluding properties classified as discontinued operations | Maryland
Concentration
Annualized Rental income percent	15.00%
Annualized rental income, excluding properties classified as discontinued operations | California
Concentration
Annualized Rental income percent	9.60%
Annualized rental income, excluding properties classified as discontinued operations | Georgia
Concentration
Annualized Rental income percent	5.80%
Annualized rental income, excluding properties classified as discontinued operations | Washington, DC Market Area
Concentration
Concentration risk percentage	43.30%
Annualized rental income, excluding properties classified as discontinued operations | Tenant concentration | U.S. Government, state governments and Other Four Government
Concentration
Concentration risk percentage	63.20%	87.90%
Annualized rental income, excluding properties classified as discontinued operations | Tenant concentration | U.S. Government
Concentration
Concentration risk percentage	44.00%	60.10%

Indebtedness - Debt Obligations

Indebtedness - Debt Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	May 01, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Borrowings outstanding	$ 570,000			$ 570,000
Maximum borrowing capacity on revolving credit facility	2,500,000
Aggregate principal amount on secured properties	182,248
Debt outstanding	548,022			$ 547,852
Unsecured term loan, due in 2020
Debt Instrument [Line Items]
Face amount	$ 300,000
Interest rate (as a percent)	3.30%
The weighted average annual interest rate (as a percent)	3.00%	2.20%
Unsecured term loan, due in 2022
Debt Instrument [Line Items]
Face amount	$ 250,000
Interest rate (as a percent)	3.70%
The weighted average annual interest rate (as a percent)	3.40%	2.60%
Unsecured revolving credit facility
Debt Instrument [Line Items]
Borrowings outstanding	$ 570,000
Maximum borrowing capacity on revolving credit facility	$ 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)	3.00%
The weighted average annual interest rate (as a percent)	2.80%	2.00%
Unsecured revolving credit facility | Subsequent Event
Debt Instrument [Line Items]
Debt outstanding			$ 580,000
Term loans
Debt Instrument [Line Items]
Face amount	$ 550,000
Senior unsecured notes
Debt Instrument [Line Items]
Face amount	$ 960,000
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 - Additional Infor

Indebtedness - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)buildingloanproperty
Debt Disclosure [Abstract]
Number of properties secured by mortgage notes | property	8
Number of buildings secured by mortgage notes | building	8
Aggregate net book value of secured properties	$ 426,404
Number of assumed secured mortgage loans | loan	8
Aggregate principal amount on secured properties	$ 182,248

Fair Value of Assets and Liab39

Fair Value of Assets and Liabilities - Recurring and Nonrecurring Assets (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)buildingpropertyshares	Mar. 31, 2017USD ($)
Fair Value of Assets and Liabilities
Common shares owned in RMR Inc. (in shares) | shares	1,214,225
Historical cost	$ 26,888
Unrealized gain on equity securities	$ 12,931	$ 0
Number of assets held for sale | property	2
Number of buildings | building	166
Recurring
Fair Value of Assets and Liabilities
Investment in RMR Inc.	$ 84,935
Recurring | Level 1 inputs
Fair Value of Assets and Liabilities
Investment in RMR Inc.	84,935
Recurring | Level 2 inputs
Fair Value of Assets and Liabilities
Investment in RMR Inc.	0
Recurring | Level 3 inputs
Fair Value of Assets and Liabilities
Investment in RMR Inc.	0
Nonrecurring | Discontinued Operations, Held-for-sale
Fair Value of Assets and Liabilities
Properties held for sale	18,080
Nonrecurring | Level 1 inputs | Discontinued Operations, Held-for-sale
Fair Value of Assets and Liabilities
Properties held for sale	0
Nonrecurring | Level 2 inputs | Discontinued Operations, Held-for-sale
Fair Value of Assets and Liabilities
Properties held for sale	18,080
Nonrecurring | Level 3 inputs | Discontinued Operations, Held-for-sale
Fair Value of Assets and Liabilities
Properties held for sale	$ 0
Office Building
Fair Value of Assets and Liabilities
Number of buildings | building	2

Fair Value of Assets and Liab40

Fair Value of Assets and Liabilities - Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value of Financial Instruments
Senior Notes	$ 944,743	$ 944,140
Mortgage notes payable, net	$ 182,083	183,100
Senior unsecured notes, 3.75% interest rate, due in 2019
Fair Value of Financial Instruments
Interest rate (as a percent)	3.75%
Senior unsecured notes, 5.875% interest rate, due in 2046
Fair Value of Financial Instruments
Interest rate (as a percent)	5.875%
Senior unsecured notes, 4.000% interest rate, due in 2022
Fair Value of Financial Instruments
Interest rate (as a percent)	4.00%
Mortgage note payable, 4.050% interest rate, due in 2030
Fair Value of Financial Instruments
Interest rate (as a percent)	4.05%
Mortgage note payable, 5.720% interest rate, due in 2020
Fair Value of Financial Instruments
Interest rate (as a percent)	5.72%
Mortgage note payable, 4.220% interest rate, due in 2022
Fair Value of Financial Instruments
Interest rate (as a percent)	4.22%
Mortgage note payable, 4.800% interest rate, due in 2023
Fair Value of Financial Instruments
Interest rate (as a percent)	4.80%
Mortgage note payable, 5.877% interest rate, due in 2021
Fair Value of Financial Instruments
Interest rate (as a percent)	5.877%
Mortgage note payable, 7.000% interest rate, due in 2019
Fair Value of Financial Instruments
Interest rate (as a percent)	7.00%
Mortgage note payable, 8.150% interest rate, due in 2021
Fair Value of Financial Instruments
Interest rate (as a percent)	8.15%
Mortgage note payable, 4.260% interest rate, due in 2020
Fair Value of Financial Instruments
Interest rate (as a percent)	4.26%
Carrying Amount
Fair Value of Financial Instruments
Mortgage notes payable, net	$ 1,126,826	1,127,240
Carrying Amount | Senior unsecured notes, 3.75% interest rate, due in 2019
Fair Value of Financial Instruments
Senior Notes	348,381	348,096
Carrying Amount | Senior unsecured notes, 5.875% interest rate, due in 2046
Fair Value of Financial Instruments
Senior Notes	300,318	300,232
Carrying Amount | Senior unsecured notes, 4.000% interest rate, due in 2022
Fair Value of Financial Instruments
Senior Notes	296,044	295,812
Carrying Amount | Mortgage note payable, 4.050% interest rate, due in 2030
Fair Value of Financial Instruments
Senior Notes	64,343	64,293
Carrying Amount | Mortgage note payable, 5.720% interest rate, due in 2020
Fair Value of Financial Instruments
Senior Notes	35,786	36,085
Carrying Amount | Mortgage note payable, 4.220% interest rate, due in 2022
Fair Value of Financial Instruments
Senior Notes	27,742	27,906
Carrying Amount | Mortgage note payable, 4.800% interest rate, due in 2023
Fair Value of Financial Instruments
Senior Notes	25,394	25,501
Carrying Amount | Mortgage note payable, 5.877% interest rate, due in 2021
Fair Value of Financial Instruments
Mortgage notes payable, net	13,560	13,620
Carrying Amount | Mortgage note payable, 7.000% interest rate, due in 2019
Fair Value of Financial Instruments
Mortgage notes payable, net	8,291	8,391
Carrying Amount | Mortgage note payable, 8.150% interest rate, due in 2021
Fair Value of Financial Instruments
Mortgage notes payable, net	3,823	4,111
Carrying Amount | Mortgage note payable, 4.260% interest rate, due in 2020
Fair Value of Financial Instruments
Mortgage notes payable, net	3,144	3,193
Fair Value
Fair Value of Financial Instruments
Mortgage notes payable, net	1,150,400	1,164,606
Fair Value | Senior unsecured notes, 3.75% interest rate, due in 2019
Fair Value of Financial Instruments
Senior Notes	351,673	354,993
Fair Value | Senior unsecured notes, 5.875% interest rate, due in 2046
Fair Value of Financial Instruments
Senior Notes	314,464	320,416
Fair Value | Senior unsecured notes, 4.000% interest rate, due in 2022
Fair Value of Financial Instruments
Senior Notes	301,044	302,655
Fair Value | Mortgage note payable, 4.050% interest rate, due in 2030
Fair Value of Financial Instruments
Senior Notes	63,918	65,198
Fair Value | Mortgage note payable, 5.720% interest rate, due in 2020
Fair Value of Financial Instruments
Senior Notes	35,812	36,332
Fair Value | Mortgage note payable, 4.220% interest rate, due in 2022
Fair Value of Financial Instruments
Senior Notes	28,081	28,432
Fair Value | Mortgage note payable, 4.800% interest rate, due in 2023
Fair Value of Financial Instruments
Senior Notes	25,488	25,904
Fair Value | Mortgage note payable, 5.877% interest rate, due in 2021
Fair Value of Financial Instruments
Mortgage notes payable, net	14,345	14,565
Fair Value | Mortgage note payable, 7.000% interest rate, due in 2019
Fair Value of Financial Instruments
Mortgage notes payable, net	8,410	8,555
Fair Value | Mortgage note payable, 8.150% interest rate, due in 2021
Fair Value of Financial Instruments
Mortgage notes payable, net	4,014	4,340
Fair Value | Mortgage note payable, 4.260% interest rate, due in 2020
Fair Value of Financial Instruments
Mortgage notes payable, net	$ 3,151	$ 3,216

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Apr. 19, 2018	Apr. 03, 2018	Feb. 26, 2018	Jan. 01, 2018	Mar. 31, 2018	May 01, 2018	Dec. 31, 2017
Share Awards
Cash distribution to common shareholders (in dollars per share)			$ 0.43
Distribution paid to common shareholders			$ 42,632
Preferred units of limited partnership					$ 20,496		$ 20,496
Subsequent Event
Share Awards
Distribution paid to common shareholders	$ 42,634
Distribution payable to common shareholders (in dollars per share)	$ 0.43
Former Employee of RMR LLC
Share Awards
Stock repurchased (in shares)				617
Stock repurchased (in dollars per share)				$ 18.54
Share Award Plan | Common shares | Trustees | Subsequent Event
Share Awards
Shares granted (in dollars per share)		$ 13.59
Shares granted (in shares)		3,000
Series A Cumulative Preferred Units
Share Awards
Temporary equity (in shares)					1,813,504
Redemption percentage					5.50%
Series A Cumulative Preferred Units | Subsequent Event
Share Awards
Redemption price (in dollars per share)						$ 11.15
Redemption amount						$ 20,310

Shareholders' Equity - AOCI Rol

Shareholders' Equity - AOCI Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 1,330,043
Other comprehensive income (loss)	(41)	$ 16,757
Ending balance	1,294,358
Unrealized Gain on Investment in Equity Securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	45,116
Amounts reclassified from cumulative other comprehensive income to cumulative net income	(45,116)
Other comprehensive loss before reclassifications	0
Amounts reclassified from cumulative other comprehensive loss to net income	0
Other comprehensive income (loss)	0
Ending balance	0
Equity in Unrealized Gain (Loss) of an Investee
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	15,311
Amounts reclassified from cumulative other comprehensive income to cumulative net income	(14,325)
Other comprehensive loss before reclassifications	(22)
Amounts reclassified from cumulative other comprehensive loss to net income	(19)
Other comprehensive income (loss)	(41)
Ending balance	945
Total
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	60,427
Amounts reclassified from cumulative other comprehensive income to cumulative net income	(59,441)
Other comprehensive loss before reclassifications	(22)
Amounts reclassified from cumulative other comprehensive loss to net income	(19)
Other comprehensive income (loss)	(41)
Ending balance	$ 945

Business and Property Managem43

Business and Property Management Agreements with RMR LLC (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)employeeagreement	Mar. 31, 2017USD ($)
RMR LLC
Related Party Transaction [Line Items]
Number of employees | employee	0
Number of agreements | agreement	2
Related party expense	$ 7,309	$ 2,704
Reimbursement expense	4,969	3,391
Internal audit costs	69	67
Net Property Management and Construction Supervision Fees | RMR LLC
Related Party Transaction [Line Items]
Related party transaction amount	3,349	$ 2,466
RMR LLC | Affiliated Entity
Related Party Transaction [Line Items]
Reversal of expense with related party	$ 2,887
Period of common share total return, incentive fees payable	3 years

Related Person Transactions - R

Related Person Transactions - REITs, for which RMR LLC provides Management Services (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)agreementcompanyshares	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
SIR
Related Party Transaction [Line Items]
Shares holding (in shares) | shares	24,918,421
Percentage of outstanding shares owned	27.80%
RMR Inc | Class A common shares
Related Party Transaction [Line Items]
Shares holding (in shares) | shares	1,214,225
RMR LLC
Related Party Transaction [Line Items]
Number of agreements | agreement	2
Revenue from related party | $	$ 218	$ 92
AIC
Related Party Transaction [Line Items]
Number of entities to whom services are provided | company	4
Carrying value of equity method investments | $	$ 8,255		$ 8,304

Equity Investment in Select I45

Equity Investment in Select Income REIT - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]
Equity in earnings of investees	$ 9,712	$ 2,739
Investment at carrying value	465,131		$ 467,499
Cash distributions from SIR	$ 10,289	2,611
SIR
Schedule of Equity Method Investments [Line Items]
Equity investments, common shares owned (in shares)	24,918,421
Percentage of outstanding shares owned	27.80%
Equity in earnings of investees	$ 10,289	2,611
Equity in unrealized gain (loss) of investees	51	4,492
The amount of investment in exceed the underlying equity of the investee	122,579		$ 87,137
Accretion in equity of earnings	1,044	736
Investment at carrying value	465,131
Equity Investments, market value	485,411
Cash distributions from SIR	$ 12,708	$ 12,708

Equity Investment in Select I46

Equity Investment in Select Income REIT - Balance Sheet Information (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Schedule of Equity Method Investments [Line Items]
Real estate properties, net	$ 2,583,404	$ 2,633,873
Acquired real estate leases, net	323,710	351,872
Cash and cash equivalents	17,380	16,569	$ 12,808
Rents receivable, net	65,539	61,429
Other assets, net	106,234	96,033
Total assets	3,655,624	3,703,565	$ 3,703,565
Unsecured revolving credit facility	570,000	570,000
Unsecured term loan, net	548,022	547,852
Senior unsecured notes, net	944,743	944,140
Mortgage notes payable, net	182,083	183,100
Assumed real estate lease obligations, net	12,480	13,635
Other liabilities	74,623	89,440
Total shareholders' equity attributable to SIR	1,294,358	1,330,043
Total liabilities and shareholders’ equity	3,655,624	3,703,565
SIR | SIR
Schedule of Equity Method Investments [Line Items]
Real estate properties, net	3,888,100	3,905,616
Acquired real estate leases, net	461,577	477,577
Properties held for sale	5,829	5,829
Cash and cash equivalents	30,884	658,719
Rents receivable, net	131,445	127,672
Other assets, net	151,174	127,617
Total assets	4,669,009	5,303,030
Unsecured revolving credit facility	107,000	0
Industrial Logistics Properties Trust revolving credit facility	302,000	750,000
Unsecured term loan, net	0	348,870
Senior unsecured notes, net	1,428,571	1,777,425
Mortgage notes payable, net	210,749	210,785
Assumed real estate lease obligations, net	66,577	68,783
Other liabilities	125,668	155,348
Total shareholders' equity attributable to SIR	2,110,595	1,991,819
Noncontrolling interest in consolidated subsidiary	317,849	0
Total liabilities and shareholders’ equity	$ 4,669,009	$ 5,303,030

Equity Investment in Select I47

Equity Investment in Select Income REIT - Income Statement Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of Equity Method Investments [Line Items]
Total revenues	$ 108,717	$ 69,296
Real estate taxes	12,964	8,177
Other operating expenses	22,837	13,992
Depreciation and amortization	44,204	20,505
General and administrative	9,606	3,962
Total expenses	102,417	51,242
Operating income	6,300	18,054
Dividend income	304	304
Unrealized gain on equity securities	12,931	0
Interest income	116	61
Interest expense	(22,766)	(13,581)
Income from continuing operations before income taxes and equity in earnings of investees	(3,115)	4,838
Income tax expense	(32)	(18)
Equity in earnings of an investee	9,712	2,739
Net income attributed to SIR	$ 6,565	$ 7,415
Weighted average common shares outstanding (basic) (in shares)	99,041	71,079
Weighted average common shares outstanding (diluted) (in shares)	99,049	71,094
Net income attributed to SIR per common share (basic and diluted) (in dollars per share)	$ 0.06	$ 0.10
SIR
Schedule of Equity Method Investments [Line Items]
Equity in earnings of an investee	$ 10,289	$ 2,611
SIR | SIR
Schedule of Equity Method Investments [Line Items]
Rental income	99,755	97,344
Tenant reimbursements and other income	20,874	18,950
Total revenues	120,629	116,294
Real estate taxes	11,788	10,843
Other operating expenses	15,282	12,867
Depreciation and amortization	34,946	33,740
General and administrative	13,941	14,901
Write-off of straight line rents receivable, net	0	12,517
Loss on asset impairment	0	4,047
Total expenses	75,957	88,915
Operating income	44,672	27,379
Dividend income	397	397
Unrealized gain on equity securities	16,900	0
Interest income	510	13
Interest expense	(23,492)	(21,087)
Loss on early extinguishment of debt	(1,192)	0
Income from continuing operations before income taxes and equity in earnings of investees	37,795	6,702
Income tax expense	(160)	(102)
Equity in earnings of an investee	44	128
Net income	37,679	6,728
Net income allocated to noncontrolling interest	(4,479)	0
Net income attributed to SIR	$ 33,200	$ 6,728
Weighted average common shares outstanding (basic) (in shares)	89,382	89,331
Weighted average common shares outstanding (diluted) (in shares)	89,390	89,348
Net income attributed to SIR per common share (basic and diluted) (in dollars per share)	$ 0.37	$ 0.08

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)segment	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Segment Reporting Information [Line Items]
Number of segments | segment	2
Rental income	$ 108,717	$ 69,296
Expenses:
Real estate taxes	12,964	8,177
Utility expenses	6,690	4,606
Other operating expenses	22,837	13,992
Depreciation and amortization	44,204	20,505
Loss on impairment of real estate	6,116	0
General and administrative	9,606	3,962
Total expenses	102,417	51,242
Operating income	6,300	18,054
Dividend income	304	304
Unrealized gain on equity securities	12,931	0
Interest income	116	61
Interest expense	(22,766)	(13,581)
Income from continuing operations before income taxes and equity in earnings of investees	(3,115)	4,838
Income tax expense	(32)	(18)
Equity in earnings of investees	9,712	2,739
Income from continuing operations	6,565	7,559
Loss from discontinued operations	0	(144)
Net income (loss)	6,565	7,415
Preferred units of limited partnership distributions	(278)	0
Net income available for common shareholders	6,287	7,415
Total assets	3,655,624	3,703,565	$ 3,703,565
Operating Segments | Investment in Real Estate
Segment Reporting Information [Line Items]
Rental income	108,717	69,296
Expenses:
Real estate taxes	12,964	8,177
Utility expenses	6,690	4,606
Other operating expenses	22,837	13,992
Depreciation and amortization	44,204	20,505
Loss on impairment of real estate	6,116
Total expenses	92,811	47,280
Operating income	15,906	22,016
Interest income	57	46
Interest expense	(2,096)	(432)
Income from continuing operations before income taxes and equity in earnings of investees	13,867	21,630
Equity in earnings of investees	(621)
Income from continuing operations		21,630
Loss from discontinued operations		(144)
Net income (loss)	13,246
Net income available for common shareholders	13,246	21,486
Total assets	3,078,889	3,138,764
Operating Segments | Investment in SIR
Expenses:
Income from continuing operations before income taxes and equity in earnings of investees	0
Equity in earnings of investees	10,289	2,611
Income from continuing operations		2,611
Net income (loss)	10,289
Net income available for common shareholders	10,289	2,611
Total assets	465,131	467,499
Corporate, Non-Segment
Expenses:
General and administrative	9,606	3,962
Total expenses	9,606	3,962
Operating income	(9,606)	(3,962)
Dividend income	304	304
Unrealized gain on equity securities	12,931
Interest income	59	15
Interest expense	(20,670)	(13,149)
Income from continuing operations before income taxes and equity in earnings of investees	(16,982)	(16,792)
Income tax expense	(32)	(18)
Equity in earnings of investees	44	128
Income from continuing operations		(16,682)
Net income (loss)	(16,970)
Preferred units of limited partnership distributions	(278)
Net income available for common shareholders	(17,248)	(16,682)
Total assets	$ 111,604	$ 97,302