Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017 | |
Document and Entity Information | |
Entity Registrant Name | Government Properties Income Trust |
Entity Central Index Key | 1,456,772 |
Document Type | 8-K |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Real estate properties: | ||
Land | $ 627,108 | $ 267,855 |
Buildings and improvements | 2,348,613 | 1,620,905 |
Total real estate properties, gross | 2,975,721 | 1,888,760 |
Accumulated depreciation | (341,848) | (296,804) |
Total real estate properties, net | 2,633,873 | 1,591,956 |
Assets of discontinued operations - Equity investment in Select Income REIT | 467,499 | 487,708 |
Investment in unconsolidated joint ventures | 50,202 | 0 |
Assets of property discontinued operations | 0 | 12,541 |
Acquired real estate leases, net | 351,872 | 124,848 |
Cash and cash equivalents | 16,569 | 29,941 |
Restricted cash | 3,111 | 530 |
Rents receivable, net | 61,429 | 48,458 |
Deferred leasing costs, net | 22,977 | 21,079 |
Other assets, net | 96,033 | 68,005 |
Total assets | 3,703,565 | 2,385,066 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Unsecured revolving credit facility | 570,000 | 160,000 |
Unsecured term loans, net | 547,852 | 547,171 |
Senior unsecured notes, net | 944,140 | 646,844 |
Mortgage notes payable, net | 183,100 | 27,837 |
Liabilities of property discontinued operations | 0 | 45 |
Accounts payable and other liabilities | 89,440 | 54,019 |
Due to related persons | 4,859 | 3,520 |
Assumed real estate lease obligations, net | 13,635 | 10,626 |
Total liabilities | 2,353,026 | 1,450,062 |
Commitments and contingencies | ||
Preferred units of limited partnership | 20,496 | 0 |
Shareholders’ equity: | ||
Common shares of beneficial interest, $.01 par value: 150,000,000 and 100,000,000 shares authorized, respectively, 99,145,921 and 71,177,906 shares issued and outstanding, respectively | 991 | 712 |
Additional paid in capital | 1,968,217 | 1,473,533 |
Cumulative net income | 108,144 | 96,329 |
Cumulative other comprehensive income | 60,427 | 26,957 |
Cumulative common distributions | (807,736) | (662,527) |
Total shareholders’ equity | 1,330,043 | 935,004 |
Total liabilities and shareholders’ equity | $ 3,703,565 | $ 2,385,066 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common shares of beneficial interest, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares of beneficial interest, shares authorized | 150,000,000 | 100,000,000 |
Common shares of beneficial interest, shares issued | 99,145,921 | 71,177,906 |
Common shares of beneficial interest, shares outstanding | 99,145,921 | 71,177,906 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rental income | $ 316,532 | $ 258,180 | $ 248,549 |
Expenses: | |||
Real estate taxes | 37,942 | 30,703 | 29,906 |
Other operating expenses | 65,349 | 54,290 | 50,425 |
Depreciation and amortization | 109,588 | 73,153 | 68,696 |
Loss on impairment of real estate | 9,490 | 0 | 0 |
Acquisition related costs | 0 | 1,191 | 811 |
General and administrative | 18,847 | 14,897 | 14,826 |
Total expenses | 262,214 | 191,503 | 182,580 |
Operating income | 54,318 | 66,677 | 65,969 |
Dividend income | 1,216 | 971 | 811 |
Interest income | 1,962 | 158 | 14 |
Interest expense (including net amortization of debt premiums and discounts and deferred financing fees of $3,420, $2,832, and $1,376, respectively) | (65,406) | (45,060) | (37,008) |
Gain (loss) on early extinguishment of debt | (1,715) | 104 | 34 |
Loss on distribution to common shareholders of The RMR Group Inc. common stock | 0 | 0 | (12,368) |
Income (loss) from continuing operations before income taxes, equity in earnings (losses) of investees and gain on sale of real estate | (9,625) | 22,850 | 17,452 |
Income tax expense | (101) | (101) | (86) |
Equity in earnings (losses) of investees | (13) | 137 | 20 |
Income (loss) from continuing operations | (9,739) | 22,886 | 17,386 |
Income (loss) from discontinued operations | 21,829 | 34,878 | (227,347) |
Income (loss) before gain on sale of real estate | 12,090 | 57,764 | (209,961) |
Gain on sale of real estate | 0 | 79 | 0 |
Net income (loss) | 12,090 | 57,843 | (209,961) |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on investment in available for sale securities | 24,042 | 30,465 | (9,391) |
Equity in unrealized gain (loss) of investees | 9,428 | 11,359 | (5,513) |
Other comprehensive income (loss) | 33,470 | 41,824 | (14,904) |
Comprehensive income (loss) | 45,560 | 99,667 | (224,865) |
Net income (loss) | 12,090 | 57,843 | (209,961) |
Preferred units of limited partnership distributions | (275) | 0 | 0 |
Net income (loss) available for common shareholders | $ 11,815 | $ 57,843 | $ (209,961) |
Weighted average common shares outstanding (basic) (in shares) | 84,633 | 71,050 | 70,700 |
Weighted average common shares outstanding (diluted) (in shares) | 84,653 | 71,071 | 70,700 |
Per common share amounts (basic and diluted): | |||
Income (loss) from continuing operations (basic and diluted) (in dollars per share) | $ (0.12) | $ 0.32 | $ 0.25 |
Income (loss) from discontinued operations (basic and diluted) (in dollars per share) | 0.26 | 0.49 | (3.22) |
Net income (loss) available for common shareholders (basic and diluted) (in dollars per share) | $ 0.14 | $ 0.81 | $ (2.97) |
Utility expenses | |||
Expenses: | |||
Utility expenses | $ 20,998 | $ 17,269 | $ 17,916 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net amortization of debt premiums and discounts and debt issuance costs | $ 3,420 | $ 2,832 | $ 1,376 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Shares | Additional Paid In Capital | Cumulative Net Income (Loss) | Cumulative Other Comprehensive Income (Loss) | Cumulative Common Distributions |
Balance beginning at Dec. 31, 2014 | $ 1,297,449 | $ 703 | $ 1,457,631 | $ 248,447 | $ 37 | $ (409,369) |
Balance (in shares) at Dec. 31, 2014 | 70,349,227 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Issuance of shares, net | 14,046 | $ 7 | 14,039 | |||
Issuance of shares, net (in shares) | 723,222 | |||||
Share grants | 985 | $ 1 | 984 | |||
Share grants (in shares) | 65,600 | |||||
Share repurchases | (172) | (172) | ||||
Share repurchases (in shares) | (11,741) | |||||
Equity in unrealized gain (loss) of investees | (5,513) | (5,513) | ||||
Unrealized gain (losss) on investment in available for sale securities | (9,391) | (9,391) | ||||
Net income (loss) available for common shareholders | (209,961) | (209,961) | ||||
Distributions to common shareholders | (130,792) | (130,792) | ||||
Balance ending at Dec. 31, 2015 | 956,651 | $ 711 | 1,472,482 | 38,486 | (14,867) | (540,161) |
Balance (in shares) at Dec. 31, 2015 | 71,126,308 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Share grants | 1,389 | $ 1 | 1,388 | |||
Share grants (in shares) | 65,900 | |||||
Share repurchases | (337) | (337) | ||||
Share repurchases (in shares) | (14,302) | |||||
Equity in unrealized gain (loss) of investees | 11,359 | 11,359 | ||||
Unrealized gain (losss) on investment in available for sale securities | 30,465 | 30,465 | ||||
Net income (loss) available for common shareholders | 57,843 | 57,843 | ||||
Distributions to common shareholders | (122,366) | (122,366) | ||||
Balance ending at Dec. 31, 2016 | 935,004 | $ 712 | 1,473,533 | 96,329 | 26,957 | (662,527) |
Balance (in shares) at Dec. 31, 2016 | 71,177,906 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Issuance of shares, net | 493,866 | $ 279 | 493,587 | |||
Issuance of shares, net (in shares) | 27,907,029 | |||||
Share grants | 1,361 | 1,361 | ||||
Share grants (in shares) | 75,350 | |||||
Share repurchases | (264) | (264) | ||||
Share repurchases (in shares) | (14,364) | |||||
Equity in unrealized gain (loss) of investees | 9,428 | 9,428 | ||||
Unrealized gain (losss) on investment in available for sale securities | 24,042 | 24,042 | ||||
Net income (loss) available for common shareholders | 11,815 | 11,815 | ||||
Distributions to common shareholders | (145,209) | (145,209) | ||||
Balance ending at Dec. 31, 2017 | $ 1,330,043 | $ 991 | $ 1,968,217 | $ 108,144 | $ 60,427 | $ (807,736) |
Balance (in shares) at Dec. 31, 2017 | 99,145,921 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 12,090 | $ 57,843 | $ (209,961) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Depreciation | 52,427 | 42,489 | 38,987 |
Net amortization of debt premiums and discounts and debt issuance costs | 3,420 | 2,832 | 1,376 |
Gain on sale of real estate | 0 | (79) | 0 |
(Gain) loss on early extinguishment of debt | 1,715 | (104) | (34) |
Straight line rental income | (5,582) | (2,691) | (3,978) |
Amortization of acquired real estate leases | 56,174 | 29,003 | 28,624 |
Amortization of deferred leasing costs | 3,802 | 3,265 | 2,349 |
Other non-cash expenses, net | 300 | 284 | 817 |
Loss on impairment of real estate | 9,490 | 0 | 0 |
Increase in carrying value of property included in discontinued operations | (619) | 0 | 0 |
Equity in earnings of investees | 13 | (137) | (20) |
Equity in earnings of Select Income REIT | (21,584) | (35,381) | (18,620) |
Net (gain) loss on issuance of shares by Select Income REIT | (72) | (86) | 42,145 |
Loss on distribution to common shareholders of The RMR Group Inc. common stock | 0 | 0 | 12,368 |
Loss on impairment of Select Income REIT investment | 0 | 0 | 203,297 |
Distributions of earnings from Select Income REIT | 21,584 | 35,381 | 18,620 |
Change in assets and liabilities: | |||
Restricted cash | 0 | 0 | 0 |
Deferred leasing costs | (5,017) | (10,196) | (4,741) |
Rents receivable | (4,990) | 1,670 | (2,729) |
Other assets | 1,368 | 25 | 515 |
Accounts payable and accrued expenses | 11,696 | 1,970 | 1,097 |
Due to related persons | 1,339 | 634 | 725 |
Net cash provided by operating activities | 137,554 | 126,722 | 110,837 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Real estate acquisitions and deposits | (1,187,012) | (200,331) | 0 |
Real estate improvements | (45,940) | (32,999) | (19,163) |
Investment in Select Income REIT | 0 | 0 | (95,821) |
Investment in The RMR Group Inc. | 0 | 0 | (7,226) |
Distributions in excess of earnings from Select Income REIT | 29,248 | 14,954 | 28,410 |
Distributions in excess of earnings from our unconsolidated joint ventures | 482 | 0 | 0 |
Proceeds from sale of properties, net | 15,083 | 263 | 30,460 |
Net cash used in investing activities | (1,188,139) | (218,113) | (63,340) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of mortgage notes payable | (11,909) | (107,933) | (48,908) |
Proceeds from issuance of senior notes, after discounts | 297,954 | 300,235 | 0 |
Proceeds from issuance of common shares, net | 493,866 | 0 | 0 |
Borrowings on unsecured revolving credit facility | 645,000 | 399,000 | 195,000 |
Repayments on unsecured revolving credit facility | (235,000) | (356,000) | (78,000) |
Payment of debt issuance costs | (4,644) | (544) | (21) |
Repurchase of common shares | (264) | (337) | (172) |
Distributions to common shareholders | (145,209) | (122,366) | (121,660) |
Net cash provided by (used in) financing activities | 1,039,794 | 112,055 | (53,761) |
Increase (decrease) in cash, cash equivalents and restricted cash | (10,791) | 20,664 | (6,264) |
Cash and cash equivalents and restricted cash at beginning of year | 30,471 | 9,807 | 16,071 |
Cash and cash equivalents and restricted cash at end of year | 19,680 | 30,471 | 9,807 |
Supplemental cash flow information: | |||
Interest paid | 55,048 | 41,139 | 35,500 |
Income taxes paid | 117 | 111 | 143 |
Non-cash investing activities: | |||
Investment in The RMR Group Inc. paid in common shares | 0 | 0 | 13,545 |
Sale of real estate | 0 | 3,600 | 0 |
Mortgage note receivable related to sale of real estate | 0 | (3,600) | 0 |
Distribution of The RMR Group Inc. common stock received from Select Income REIT | 0 | 0 | 5,244 |
Working capital assumed | (1,596) | 0 | 0 |
Non-cash financing activities: | |||
Assumption of mortgage debt | 167,548 | 0 | 0 |
Distribution to common shareholders of The RMR Group Inc. common stock | 0 | 0 | (9,132) |
Preferred units of limited partnership issued | $ 20,221 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS - Supplemental Information - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 16,569 | $ 29,941 | $ 8,785 | |
Restricted cash | 3,111 | 530 | 1,022 | |
Total cash and cash equivalents and restricted cash shown in the statements of cash flows | $ 19,680 | $ 30,471 | $ 9,807 | $ 16,071 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Government Properties Income Trust, or the Company, we or us, is a real estate investment trust, or REIT, formed in 2009 under Maryland law. As of December 31, 2017 , we wholly owned 108 properties ( 167 buildings), or our consolidated properties, located in 30 states and the District of Columbia containing approximately 17.5 million rentable square feet and had a noncontrolling ownership interest in two unconsolidated joint ventures that own properties ( three buildings) totaling an additional 0.4 million rentable square feet. As of December 31, 2017 , we also owned 24,918,421 common shares of beneficial interest, par value $0.01 per share, or approximately 27.8% , of the then outstanding common shares of Select Income REIT, or SIR, and such SIR common shares we owned as of December 31, 2017, the SIR investment. On October 9, 2018, we sold the SIR investment and reclassified it as discontinued operations in our consolidated financial statements. See Notes 12, 13 and 16 for further information regarding the SIR investment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation. These consolidated financial statements include the accounts of us and our subsidiaries, all of which are 100% owned directly or indirectly by us. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Real Estate Properties. We record our properties at cost and provide depreciation on real estate investments on a straight line basis over estimated useful lives generally ranging from 7 to 40 years. In some circumstances, we engage independent real estate appraisal firms to provide market information and evaluations which are relevant to our purchase price allocations and determinations of useful lives; however, we are ultimately responsible for the purchase price allocations and determinations of useful lives. We allocate the purchase prices of our properties to land, building and improvements based on determinations of the relative fair values of these assets assuming the properties are vacant. We determine the fair value of each property using methods similar to those used by independent appraisers. We allocate a portion of the purchase price of our properties to above market and below market leases based on the present value (using an interest rate which reflects the risks associated with acquired in place leases at the time each property was acquired by us) of the difference, if any, between (i) the contractual amounts to be paid pursuant to the acquired in place leases and (ii) our estimates of fair market lease rates for the corresponding leases, measured over a period equal to the terms of the respective leases. We allocate a portion of the purchase price to acquired in place leases and tenant relationships based upon market estimates to lease up the property based on the leases in place at the time of purchase. We allocate this aggregate value between acquired in place lease values and tenant relationships based on our evaluation of the specific characteristics of each tenant’s lease. However, we have not separated the value of tenant relationships from the value of acquired in place leases because such value and related amortization expense is immaterial to the accompanying consolidated financial statements. In making these allocations, we consider factors such as estimated carrying costs during the expected lease up periods, including real estate taxes, insurance and other operating income and expenses and costs, such as leasing commissions, legal and other related expenses, to execute similar leases in current market conditions at the time a property was acquired by us. If the value of tenant relationships becomes material in the future, we may separately allocate those amounts and amortize the allocated amounts over the estimated life of the relationships. For transactions that qualify as business combinations, we allocate the excess, if any, of the consideration over the fair value of the assets acquired to goodwill. We amortize capitalized above market lease values (included in acquired in place real estate leases in our consolidated balance sheets) and below market lease values (presented as assumed real estate lease obligations in our consolidated balance sheets) as a reduction or increase, respectively, to rental income over the terms of the associated leases. Such amortization resulted in net decreases to rental income of $2,764 , $1,457 and $1,157 during the years ended December 31, 2017 , 2016 and 2015 , respectively. We amortize the value of acquired in place leases (included in acquired real estate leases in our consolidated balance sheets), exclusive of the value of above market and below market acquired in place leases, over the terms of the associated leases. Such amortization, which is included in depreciation and amortization expense, amounted to $53,410 , $27,546 , and $27,467 during the years ended December 31, 2017 , 2016 and 2015 , respectively. When a lease is terminated prior to its stated expiration, we write off the unamortized amounts relating to that lease. Capitalized above market lease values were $46,096 and $39,261 as of December 31, 2017 and 2016 , respectively, net of accumulated amortization of $27,259 and $22,753 , respectively. Capitalized below market lease values were $25,973 and $20,603 as of December 31, 2017 and 2016 , respectively, net of accumulated amortization of $12,338 and $9,977 , respectively. The value of acquired in place leases, exclusive of the value of above market and below market acquired in place leases, was $472,928 and $203,368 as of December 31, 2017 and 2016 , respectively, net of accumulated amortization of $139,893 and $95,028 , respectively. As of December 31, 2017 , the weighted average amortization periods for capitalized above market leases, lease origination value and capitalized below market lease values were 4.0 years, 5.6 years and 5.7 years, respectively. Future amortization of net intangible lease assets and liabilities, to be recognized over the current terms of the associated leases as of December 31, 2017 are estimated to be $97,114 in 2018 , $70,790 in 2019 , $49,230 in 2020 , $36,321 in 2021 , $27,313 in 2022 and $58,263 thereafter. We regularly evaluate whether events or changes in circumstances have occurred that could indicate an impairment in the value of 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. Equity Method Investments. We account for our investments in Affiliates Insurance Company, or AIC, and SIR using the equity method of accounting. Significant influence is present through common representation on the boards of trustees or directors of us, AIC and SIR and our significant ownership interest in SIR. Our Managing Trustee is also the managing trustee of SIR. Our Managing Trustee as the current sole trustee of ABP Trust is the controlling shareholder of The RMR Group Inc., or RMR Inc. He is also a director and officer of RMR Inc. Substantially all of the business of RMR Inc. is conducted by its majority owned subsidiary, The RMR Group LLC, or RMR LLC, which is our manager and the manager of AIC and SIR. Each of our Trustees is a director of AIC and one of our Independent Trustees is also an independent trustee of SIR. See Notes 7, 12 and 13 for a further discussion of our investments in AIC and SIR. In connection with the FPO Transaction, we acquired 50% and 51% interests in two unconsolidated joint ventures which own two properties ( three buildings). The properties owned by these joint ventures are encumbered by an aggregate $82,000 of mortgage indebtedness. We do not control the activities that are most significant to these joint ventures and, as a result, we account for our investment in these joint ventures under the equity method of accounting. See Note 5 for a further discussion of our unconsolidated joint ventures. We periodically evaluate our equity method investments 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 and the extent to which the market value of our investment is below our carrying value, the financial condition of our investees, 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 record an impairment charge to adjust the basis of the investment to its estimated fair value. We recorded a $203,297 loss on impairment of our SIR investment in 2015 . See Note 12 for more information on this impairment. Cash and Cash Equivalents. We consider highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Restricted Cash. Restricted cash 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. 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. We increased rental income by $5,582 , $2,691 and $3,978 to record revenue on a straight line basis during the years ended December 31, 2017 , 2016 and 2015 , respectively. Rents receivable include $27,267 and $21,686 of straight line rent receivables at December 31, 2017 and 2016 , respectively. Certain of our leases with government tenants provide the tenant the right to terminate its lease if its respective legislature or other funding authority does not appropriate the funding necessary for the government tenant to meet its lease obligations; we have determined the fixed non-cancelable lease term of these leases to be the fully executed term of the lease because we believe the occurrence of termination to be a remote contingency based on both our historical experience and our assessment of the likelihood of lease cancellation on a separate lease basis. Deferred Leasing Costs . Deferred leasing costs include brokerage, legal and other fees associated with our entering leases and we amortize those costs, which are included in depreciation and amortization expense, on a straight line basis over the terms of the respective leases. Deferred leasing costs totaled $32,990 and $28,039 at December 31, 2017 and 2016 , respectively, and accumulated amortization of deferred leasing costs totaled $10,013 and $6,960 at December 31, 2017 and 2016 , respectively. Future amortization of deferred leasing costs to be recognized during the current terms of our existing leases as of December 31, 2017 are estimated to be $4,282 in 2018 , $4,091 in 2019 , $3,275 in 2020 , $2,670 in 2021 , $2,186 in 2022 and $6,473 thereafter. Available for Sale Securities. As of December 31, 2017 , we owned 1,214,225 common shares of class A common stock of RMR Inc. Our investment in RMR Inc. is classified as an available for sale security. Available for sale securities are recorded at fair value based on their quoted market price at the end of each reporting period. Unrealized gains and losses on available for sale securities are recorded as a component of cumulative other comprehensive income (loss) in shareholders’ equity. As further described in Note 7 , we initially acquired 1,541,201 shares of class A common stock of RMR Inc. on June 5, 2015 for cash and share consideration of $17,462 . We concluded, for accounting purposes, that the cash and share consideration we paid for our investment in these shares represented a discount to the fair value of these shares. We initially accounted for this investment under the cost method of accounting and recorded this investment at its estimated fair value of $39,833 as of June 5, 2015 using Level 3 inputs, as defined in the fair value hierarchy under U.S. generally accepted accounting principles, or GAAP. As a result, we recorded a liability for the amount by which the estimated fair value of these shares exceeded the price we paid for these shares. This liability is included in accounts payable and other liabilities in our consolidated balance sheets. This liability is being amortized on a straight line basis through December 31, 2035 as an allocated reduction to our business management and property management fee expense. We amortized $1,087 , $1,087 and $618 of this liability during the years ended December 31, 2017 , 2016 and 2015, respectively. These amounts are included in the net business management and property management fee amounts for such periods. As of December 31, 2017 , the remaining unamortized amount of this liability was $19,580 . Future amortization of this liability as of December 31, 2017 is estimated to be $1,087 in 2018, $1,087 in 2019, $1,087 in 2020, $1,087 in 2021, $1,087 in 2022 and $14,145 thereafter. We evaluate our investments in available for sale securities to determine if a decline in the fair value below our carrying value is other than temporary. We consider the severity and the duration of the decline, and our ability and intent to hold the investment until recovery when making this assessment. If a decline in fair value is determined to be other than temporary, an impairment loss equal to the difference between the investment’s carrying value and its fair value is recognized in earnings. Debt Issuance Costs . Debt issuance costs include capitalized issuance or assumption costs related to borrowings, which are amortized to interest expense over the terms of the respective loans. Debt issuance costs, net of accumulated amortization, for our revolving credit facility are included in other assets in our consolidated balance sheets. As of December 31, 2017 and 2016 , debt issuance costs for our revolving credit facility were $5,234 and accumulated amortization of debt issuance costs for our revolving credit facility were $3,849 and $2,617 , respectively. Debt issuance costs, net of accumulated amortization, for our unsecured term loans, senior unsecured notes and mortgage notes payable are presented as a direct deduction from the associated debt liability in our consolidated balance sheets. As of December 31, 2017 and 2016 , debt issuance costs, net of accumulated amortization, for our unsecured term loans, senior unsecured notes, and mortgage notes payable totaled $15,750 and $14,725 , respectively. Future amortization of debt issuance costs to be recognized with respect to our revolving credit facility, unsecured term loans, senior unsecured notes and mortgage notes as of December 31, 2017 are estimated to be $3,469 in 2018 , $2,217 in 2019 , $1,357 in 2020 , $1,217 in 2021 , $826 in 2022 and $8,049 thereafter. Income Taxes. We have elected to be taxed as a REIT under the United States Internal Revenue Code of 1986, as amended, or the IRC, and, accordingly, we generally will not be subject to federal income taxes provided we distribute our taxable income and meet certain other requirements to qualify as a REIT. We are, however, subject to certain state and local taxes. Cumulative Other Comprehensive Income. Cumulative other comprehensive income represents the unrealized gain on the RMR Inc. shares we own and our share of the cumulative comprehensive income of our equity method investees, SIR and AIC. See Notes 7, 12, 13 and 16 for further information regarding these investments. Reclassifications. Certain reclassifications have been made to the prior years’ financial statements to conform to the current year’s presentation. Use of Estimates. Preparation of these financial statements in conformity with GAAP requires us to make estimates and assumptions that may affect the amounts reported in these consolidated financial statements and related notes. The actual results could differ from these estimates. Per Common Share Amounts. We calculate basic earnings per common share by dividing net income (loss) available for common shareholders by the weighted average number of our common shares of beneficial ownership, $.01 par value, or our common shares, outstanding during the period. We calculate diluted earnings per share using the more dilutive of the two class method or the treasury stock method. Unvested share awards and other potentially dilutive common shares and the related impact on earnings, are considered when calculating diluted earnings per share. Segment Reporting. We operate in one business segment: direct ownership of real estate properties. Our equity method investment in SIR has been reclassified as a discontinued operation and is no longer a separate business segment. |
Weighted Average Common Shares
Weighted Average Common Shares | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Weighted Average Common Shares | Weighted Average Common Shares The following table provides a reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per share (in thousands): For the Year Ended December 31, 2017 2016 2015 Weighted average common shares for basic earnings per share 84,633 71,050 70,700 Effect of dilutive securities: unvested share awards 20 21 — Weighted average common shares for diluted earnings per share 84,653 71,071 70,700 |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements On January 1, 2017, we adopted the Financial Accounting Standards Board, or FASB, Accounting Standards Update, or ASU, No. 2017-01, Clarifying the Definition of a Business . This update provides additional guidance on evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or of a business. This update defines three requirements for a set of assets and activities (collectively referred to as a “set”) to be considered a business: inputs, processes and outputs. As a result of the implementation of this update, certain property acquisitions, which under previous guidance were accounted for as business combinations, are now accounted for as acquisitions of assets. In an asset acquisition, certain acquisition costs are capitalized as opposed to expensed under previous guidance. In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers , which outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU No. 2014-09 states that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” While ASU No. 2014-09 specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate or equipment. In August 2015, the FASB provided for a one-year deferral of the effective date for ASU No. 2014-09, which is now effective for us beginning January 1, 2018. A substantial portion of our revenue consists of rental income from leasing arrangements, which is specifically excluded from ASU No. 2014-09. We have evaluated ASU No. 2014-09 (and related clarifying guidance issued by the FASB) and the adoption will not have a material impact on the amount or timing of our revenue recognition in our consolidated financial statements with the exception of profit recognition on real estate sales. We currently have recorded a deferred gain on sale of real estate of $712 that under current guidance would be recognized upon repayment of a promissory note we received in connection with the sale but will be recognized in its entirety upon adoption of ASU No. 2014-09. We currently expect to adopt the standard using the modified retrospective approach. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which changes how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. This update is effective for all prospective interim and annual periods beginning after December 15, 2017. We expect to record an adjustment of $45,116 on January 1, 2018 to reclassify historical changes in the fair value of our available for sale equity investments from other comprehensive income to retained earnings. Future changes in the fair value of our equity investments will be recorded through earnings in accordance with ASU No. 2016-01. 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 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 consolidated financial statements. |
Real Estate Properties
Real Estate Properties | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Real Estate Properties | Real Estate Properties As of December 31, 2017 , we wholly owned 108 properties ( 167 buildings), with an undepreciated carrying value of $2,975,721 and had a noncontrolling ownership interest in two unconsolidated joint ventures that own 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 year ended December 31, 2017 , we entered 75 leases for 1,604,783 rentable square feet for a weighted (by rentable square feet) average lease term of 7.6 years and we made commitments for approximately $18,249 of leasing related costs. As of December 31, 2017 , we have estimated unspent leasing related obligations of $31,310 . During the year ended December 31, 2017 , we capitalized $511 of interest expense related to the redevelopment and expansion of an existing property. FPO Transaction On October 2, 2017, we completed our acquisition of First Potomac Realty Trust, or FPO, pursuant to merger transactions, 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 for FPO was $1,370,888 , including $651,696 in cash to FPO's shareholders, the repayment of $483,000 of FPO corporate debt, the assumption of $167,548 of mortgage debt; this amount excludes the $82,000 of mortgage debt that encumber the two properties owned by the two joint ventures and the payment of certain transaction fees and expenses, net of FPO cash on hand. We financed the cash payments for the FPO Transaction with borrowings under our revolving credit facility and with cash on hand, including net proceeds from our public offerings of common shares and senior unsecured notes, as described further in Notes 9 and 11. We accounted for the FPO Transaction as an asset acquisition Our allocation of the purchase price was based on estimates of the relative fair value of the acquired assets and assumed liabilities. The following table summarizes the total consideration paid and the estimated fair values of the assets acquired and liabilities assumed in the FPO Transaction: Total Purchase Price: Cash consideration $ 1,175,140 Acquisition related costs 9,575 Total cash consideration 1,184,715 Preferred units of limited partnership issued (1) 20,221 Acquired net working capital (1,596 ) Assumed mortgage notes 167,548 Non-cash portion of purchase price 186,173 Gross purchase price $ 1,370,888 Purchase Price Allocation: Land $ 360,909 Buildings and improvements 681,340 Acquired real estate leases (2) 283,498 Investment in unconsolidated joint ventures 51,305 Cash 11,191 Restricted cash 1,018 Rents receivable 2,672 Other assets 3,640 Total assets 1,426,694 Mortgage notes payable (3) (167,936 ) Assumed real estate lease obligations (2) (5,776 ) Accounts payable and accrued expenses (10,640 ) Rents collected in advance (1,436 ) Security deposits (4,849 ) Net assets acquired 1,204,936 Assumed working capital (1,596 ) Assumed principal balance of debt 167,548 Gross purchase price $ 1,370,888 (1) Pursuant to the terms of the FPO Transaction, each unit of limited partnership interest in FPO's operating partnership that was not liquidated on the closing date was exchanged on a one-for-one basis for 5.5% Series A Cumulative Preferred Units of the surviving subsidiary. As of December 31, 2017 , there are 1,814 of 5.5% Series A Cumulative Preferred Units outstanding. Beginning on October of each year and ending January 15 of the following year, with the first such period beginning October 1, 2019, holders have the right to redeem their 5.5% Series A Cumulative Preferred Units for cash equal to $11.15 per unit. Beginning on April 1 of each year and ending June 30 of that year, with the first such period beginning April 1, 2018, we have the right to redeem all or any portion of the outstanding 5.5% Series A Cumulative Preferred Units for cash at $11.15 per unit. As of December 31, 2017 , the carrying value of these Series A Cumulative Preferred Units was $20,496 and is recorded as temporary equity on our consolidated balance sheet at December 31, 2017. (2) As of the date acquired, the weighted average amortization periods for capitalized above market lease values, lease origination value and capitalized below market lease values were 3.2 years , 3.1 years and 3.8 years , respectively. (3) Includes fair value adjustments totaling $388 on $167,936 principal amount of mortgage notes we assumed in connection with the FPO Transaction. Pro Forma Information (Unaudited): The following table presents our pro forma results of operations for the years ended December 31, 2017 and 2016 as if the FPO Transaction and related financing activities had occurred on January 1, 2016. The historical FPO results of operations included in this pro forma financial information have been adjusted to remove the results of operations of properties and joint venture interests FPO sold from January 1, 2016 to October 2, 2017, the closing date of the FPO Transaction. The effect of these adjustments was to decrease pro forma rental income $804 and $17,810 for the years ended December 31, 2017 and 2016 , respectively, and to decrease net income (loss) $47,019 and $5,403 for the years ended December 31, 2017 and 2016 , respectively. 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. Year Ended December 31, 2017 2016 Rental income $ 437,101 $ 412,245 Net income (loss) (25,898 ) 11,630 Net income (loss) per share $ (0.26 ) $ 0.12 During the year ended December 31, 2017 , we recognized revenues of $36,722 and operating income of $3,230 from the consolidated properties acquired in the FPO Transaction and ($621) in equity in losses from our unconsolidated joint ventures acquired in the FPO Transaction. Unconsolidated Joint Ventures We own interests in two joint ventures that own two properties ( three buildings). We account for these investments under the equity method of accounting. As of December 31, 2017, our investment in unconsolidated joint ventures consisted of the following: Joint Venture GOV Ownership GOV Carrying Value of Investment at December 31, 2017 Property Type Number of Buildings Location Square Feet Prosperity Metro Plaza 51% $ 27,888 Office 2 Fairfax, VA 328,456 1750 H Street, NW 50% 22,314 Office 1 Washington, DC 115,411 Total $ 50,202 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 December 31, 2017 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. At December 31, 2017 , the aggregate unamortized basis difference of our unconsolidated joint ventures of $8,933 is primarily attributable to the difference between the amount for which we purchased our interest in the joint ventures, including transaction costs, and the historical carrying value of the net assets of the joint ventures. This difference will be amortized over the remaining useful life of the related properties and included in the reported amount of equity in earnings of investees. Other 2017 Acquisition Activities During the year ended December 31, 2017 , we acquired one property ( one building) located in Manassas, VA with 69,374 rentable square feet. This property was 100% leased to Prince William County on the date of acquisition. This transaction was accounted for as an asset acquisition. The purchase price was $12,657 , including capitalized acquisition costs of $37 . Our allocation of the purchase price of this acquisition is based on the relative estimated fair value of the acquired assets and assumed liabilities is presented in the table below. Number of Buildings Other Acquisition Properties/ Square Purchase and Assumed Date Location Type Buildings Feet Price Land Improvements Assets Jan-17 Manassas, VA Office 1/1 69,374 $ 12,657 $ 1,562 $ 8,253 $ 2,842 In September 2017, we acquired transferable development rights that will allow us to expand a property we own in Washington, D.C. for a purchase price of $2,030 , excluding acquisition costs. 2016 Acquisition Activities During the year ended December 31, 2016 , we acquired three properties ( five buildings) with a combined 830,185 rentable square feet and a land parcel adjacent to one of our existing properties for an aggregate purchase price of $199,304 , excluding acquisition costs. Our allocation of the purchase price of these acquisitions based on the estimated fair value of the acquired assets and assumed liabilities is presented in the table below. Number of Buildings Other Acquired Acquisition Properties/ Square Purchase and Assumed Acquired Lease Date Location Type Buildings Feet Price (1) Land Improvements Assets Leases Obligations Jan-16 Sacramento, CA (2) Office 1/1 337,811 $ 79,508 $ 4,688 $ 61,995 $ 2,167 $ 11,245 $ (587 ) Jul-16 Atlanta, GA (3) Land — — 1,670 1,670 — — — — Dec-16 Rancho Cordova, CA (2) Office 1/1 82,896 13,943 1,466 8,797 — 3,680 — Dec-16 Chantilly, VA (2) Office 1/3 409,478 104,183 6,966 74,214 — 23,003 — 3/5 830,185 $ 199,304 $ 14,790 $ 145,006 $ 2,167 $ 37,928 $ (587 ) (1) Excludes acquisition costs. (2) Accounted for as a business combination. (3) On July 6, 2016, we acquired a land parcel adjacent to on our existing properties for $1,623 . We accounted for this transaction as an asset acquisition and capitalized acquisition related costs of $47 . 2018 Disposition Activities In January 2018, we entered an agreement to sell an office property ( one building) located in Minneapolis, MN with 193,594 rentable square feet for $20,000 , excluding closing costs. During the year ended December 31, 2017 , we recorded a $9,260 loss on impairment of real estate to reduce the carrying value of this property to its estimated fair value. This sale is expected to occur in the first quarter of 2018. In February 2018, we entered an agreement to sell an office property ( one building) located in Safford, AZ with 36,139 rentable square feet for $8,250 , excluding closing costs. This sale is expected to occur in the second quarter of 2018. In February 2018, we entered an agreement to sell an office property ( 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. Our pending dispositions are subject to conditions; accordingly, we cannot be sure that we will complete these transactions or that these transactions will not be delayed or the terms of these transactions will not change. As part of our long term financing plans for the FPO Transaction and to reduce our financial leverage, we expect to dispose of certain additional properties. We are marketing or plan to market for sale 28 properties ( 61 buildings) including properties acquired as part of the FPO Transaction, with a carrying value of $658,190 as of December 31, 2017. We cannot be sure we will sell any properties or sell them for prices in excess of our carrying values. 2017 Disposition Activities - Continuing Operations In October 2017, we sold one vacant office property ( one building) located in Albuquerque, NM with 29,045 rentable square feet and a net book value of $1,885 as of the date of sale for $2,000 , excluding closing costs. During the year ended December 31, 2017 , we recorded a $230 loss on impairment of real estate to reduce the carrying value of this property to its estimated fair value. 2017 Disposition Activities – Discontinued Operations In August 2017, we sold one vacant office property ( one building) in Falls Church, VA with 164,746 rentable square feet and a net book value of $12,901 as of the date of sale for $13,523 , excluding closing costs. Results of operations for this property, which qualified as held for sale prior to our adoption in 2014 of ASU No. 2014-8, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity , are classified as discontinued operations in our consolidated financial statements. During the year ended December 31, 2017 , we recorded an adjustment of $619 to increase the carrying value of this property to its estimated fair value less costs to sell. Summarized balance sheet and income statement information for this property is as follows: Balance Sheets As of December 31, 2016 Real estate properties, net $ 12,260 Other assets 281 Assets of discontinued operations $ 12,541 Other liabilities $ 45 Liabilities of discontinued operations $ 45 Statements of Operations Year Ended December 31, 2017 2016 2015 Rental income $ 17 $ 68 $ 114 Real estate taxes (88 ) (97 ) (92 ) Utility expenses (97 ) (146 ) (161 ) Other operating expenses (202 ) (300 ) (272 ) General and administrative (76 ) (114 ) (114 ) Increase in carrying value of property included in discontinued operations 619 — — Income (loss) from discontinued operations $ 173 $ (589 ) $ (525 ) 2016 Disposition Activities In July 2016, we sold an office property ( one building ) in Savannah, GA with 35,228 rentable square feet that had a net book value of $2,986 for $4,000 , excluding closing costs. In connection with this sale, we provided $3,600 of mortgage financing to the buyer. The mortgage note requires interest to be paid at an annual rate of LIBOR plus 4.0% , subject to a minimum annual interest rate of 5.0% , and requires monthly payments of interest only until maturity on June 30, 2021. This sales transaction did not qualify for full gain recognition under GAAP and is being accounted for under the installment method. Accordingly, we recognized a gain on sale of real estate of $79 during the year ended December 31, 2016 and recorded a deferred gain of $712 , which we currently expect to recognize when the mortgage note is repaid. The mortgage note receivable of $3,600 , net of the $712 deferred gain, is included in other assets in our consolidated balance sheets at December 31, 2017 and 2016 . Operating leases Our future minimum lease payments related to our consolidated properties and estimated real estate tax and other expense reimbursements scheduled to be received during the current terms of the existing leases as of December 31, 2017 are as follows: 2018 $ 367,883 2019 330,792 2020 258,847 2021 220,758 2022 180,558 Thereafter 564,621 $ 1,923,459 Certain of our government tenants have the right to terminate their leases before the lease term expires. As of December 31, 2017 , government tenants who currently represent approximately 4.5% of our total future minimum lease payments have currently exercisable rights to terminate their leases before the stated terms of their leases expire. In 2018 , 2019 , 2020 , 2021 , 2022 , 2023 , 2024 , 2025 , 2026 and 2027 , early termination rights become exercisable by other government tenants who currently represent an additional approximately 0.8% , 5.6% , 10.3% , 2.3% , 5.5% , 1.0% , 0.5% , 0.6% , 2.3% and 1.8% of our total future minimum lease payments, respectively. In addition, as of December 31, 2017 , 26 of our government tenants have the currently exercisable right to terminate their leases if the respective legislature or other funding authority does not appropriate the funding necessary for the government tenant to meet its obligation. These 26 tenants represent approximately 11.7% of our total future minimum lease payments as of December 31, 2017 . As part of the FPO Transaction, we assumed the lease for FPO's former corporate headquarters, which expires on January 31, 2021. We sublease a portion of the space, which sublease expires on January 31, 2021. Rent expense incurred under the lease, net of sublease revenue, was $374 for the year ended December 31, 2017. Future minimum rental payments due under the lease, net of subleased revenue, as of December 31, 2017 are summarized as follows: 2018 $ 1,543 2019 1,584 2020 1,627 2021 139 $ 4,893 |
Business and Property Managemen
Business and Property Management Agreements with RMR LLC | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Business and Property Management Agreements with RMR LLC | Business and Property Management Agreements with RMR LLC We have no employees. The personnel and various services we require to operate our business are provided to us by RMR LLC. We have two agreements with RMR LLC to provide management services to us: (1) a business management agreement, which relates to our business generally, and (2) a property management agreement, which relates to our property level operations. See Note 7 for further information regarding our relationship, agreements and transactions with RMR LLC. Management Agreements with RMR LLC . Our management agreements with RMR LLC provide for an annual base management fee, an annual incentive management fee and property management and construction supervision fees, payable in cash, among other terms: • Base Management Fee. The annual base management fee payable to RMR LLC by us for each applicable period is equal to the lesser of: ◦ the sum of (a) 0.5% of the average aggregate historical cost of the real estate assets acquired from a REIT to which RMR LLC provided business management or property management services, or the Transferred Assets, plus (b) 0.7% of the average aggregate historical cost of our real estate investments excluding the Transferred Assets up to $250,000 , plus (c) 0.5% of the average aggregate historical cost of our real estate investments excluding the Transferred Assets exceeding $250,000 ; and ◦ the sum of (a) 0.7% of the average closing price per share of our common shares on the stock exchange on which such shares are principally traded during such period, multiplied by the average number of our common shares outstanding during such period, plus the daily weighted average of the aggregate liquidation preference of each class of our preferred shares outstanding during such period, plus the daily weighted average of the aggregate principal amount of our consolidated indebtedness during such period, or, together, our Average Market Capitalization, up to $250,000 , plus (b) 0.5% of our Average Market Capitalization exceeding $250,000 . The average aggregate historical cost of our real estate investments includes our consolidated assets invested, directly or indirectly, in equity interests in or loans secured by real estate and personal property owned in connection with such real estate (including acquisition related costs and costs which may be allocated to intangibles or are unallocated), all before reserves for depreciation, amortization, impairment charges or bad debts or other similar non-cash reserves; provided, however, we do not include our ownership of SIR common shares as part of our real estate investments for purposes of calculating our base management fee due to RMR LLC since SIR pays separate business management fees to RMR LLC. • Incentive Management Fee . The incentive management fee which may be earned by RMR LLC for an annual period is calculated as follows: ◦ An amount, subject to a cap based on the value of our common shares outstanding, equal to 12% of the product of: – our equity market capitalization on the last trading day of the year immediately prior to the relevant three year measurement period (or, for purposes of calculating any incentive fee for 2015, our equity market capitalization on December 31, 2013), and – the amount (expressed as a percentage) by which the total return per share, as defined in the business management agreement and further described below, of our common shareholders (i.e., share price appreciation plus dividends) exceeds the total shareholder return of the SNL U.S. REIT Equity Index, or the benchmark return per share, for the relevant measurement period. For purposes of the total return per share of our common shareholders, share price appreciation for a measurement period is determined by subtracting (1) the closing price of our common shares on The Nasdaq Stock Market LLC, or Nasdaq, on the last trading day of the year immediately before the first year of the measurement period from (2) the average closing price of our common shares on the 10 consecutive trading days having the highest average closing prices during the final 30 trading days in the last year of the measurement period. ◦ The calculation of the incentive management fee (including the determinations of our equity market capitalization and the total return per share of our common shareholders) is subject to adjustments if additional common shares are issued during the measurement period. ◦ No incentive management fee is payable by us unless our total return per share during the measurement period is positive. ◦ The measurement periods are three year periods ending with the year for which the incentive management fee is being calculated. ◦ If our total return per share exceeds 12% per year in any measurement period, the benchmark return per share is adjusted to be the lesser of the total shareholder return of the SNL U.S. REIT Equity Index for such measurement period and 12% per year, or the adjusted benchmark return per share. In instances where the adjusted benchmark return per share applies, the incentive management fee will be reduced if our total return per share is between 200 basis points and 500 basis points below the SNL U.S. REIT Equity Index by a low return factor, as defined in the business management agreement, and there will be no incentive management fee paid if, in these instances, our total return per share is more than 500 basis points below the SNL U.S. REIT Equity Index. ◦ The incentive management fee is subject to a cap. The cap is equal to the value of the number of our common shares which would, after issuance, represent 1.5% of the number of our common shares then outstanding multiplied by the average closing price of our common shares during the 10 consecutive trading days having the highest average closing prices during the final 30 trading days of the relevant measurement period. ◦ Incentive management fees we paid to RMR LLC for any period may be subject to “clawback” if our financial statements for that period are restated due to material non-compliance with any financial reporting requirements under the securities laws as a result of the bad faith, fraud, willful misconduct or gross negligence of RMR LLC and the amount of the incentive management fee we paid was greater than the amount we would have paid based on the restated financial statements. • Property Management and Construction Supervision Fees . The property management fees payable to RMR LLC by us for each applicable period are equal to 3.0% of gross collected rents and the construction supervision fees payable to RMR LLC by us for each applicable period are equal to 5.0% of construction costs. Pursuant to our business management agreement with RMR LLC, we recognized net business management fees of $12,464 , $10,222 and $9,934 for the years ended December 31, 2017, 2016 and 2015, respectively. The net business management fees we recognized are included in general and administrative expenses for these periods. The net business management fees we recognized for the years ended December 31, 2017, 2016 and 2015 reflect a reduction of $603 , $603 and $372 , respectively, for the amortization of the liability we recorded in connection with the our investment in RMR Inc., as further described in Note 7. In accordance with the then applicable terms of our business management agreement, we issued 19,339 of our common shares to RMR LLC for the period from January 1, 2015 to May 31, 2015 as payment for a part of the base management fee we recognized for the applicable period. Beginning June 1, 2015, all management fees under our business management agreement are paid in cash. No incentive management fee was payable to RMR LLC under our business management agreement for the years ended December 31, 2017, 2016 or 2015. Pursuant to our property management agreement with RMR LLC, we recognized aggregate net property management and construction supervision fees of $11,566 , $8,949 and $7,977 for the years ended December 31, 2017, 2016 and 2015. The net property management and construction supervision fees we recognized for the years ended December 31, 2017, 2016 and 2015 reflect a reduction of $484 , $484 and $246 , respectively, for the amortization of the liability we recorded in connection with our investment in RMR Inc., as further described in Note 2. These amounts are included in other operating expenses or have been capitalized, as appropriate, in our consolidated financial statements. • Expense Reimbursement . 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 are generally incorporated into rents charged to our tenants, including certain payroll and related costs incurred by RMR LLC. We reimbursed RMR LLC $15,045 , $12,276 and $9,641 for property management related expenses for the years ended December 31, 2017, 2016 and 2015, respectively. These amounts are included in other operating expenses in our consolidated statements of comprehensive income (loss) for these periods. We are generally not responsible for payment of RMR LLC’s employment, office or administrative expenses incurred to provide management services to us, except for the employment and related expenses of RMR LLC’s employees assigned to work exclusively or partly at our properties, our share of the wages, benefits and other related costs of centralized accounting personnel and our share of RMR LLC’s costs for providing our internal audit function. Our Audit Committee appoints our Director of Internal Audit and our Compensation Committee approves the costs of our internal audit function. The amounts recognized as expense for internal audit costs were $276 , $235 and $252 for the years ended December 31, 2017, 2016 and 2015, respectively. These amounts are included in general and administrative expenses in our consolidated statements of comprehensive income (loss) for these periods. • Term . Our management agreements with RMR LLC have terms that end on December 31, 2037, and automatically extend on December 31st of each year for an additional year, so that the terms of our management agreements thereafter end on the 20th anniversary of the date of the extension. • Termination Rights . We have the right to terminate one or both of our management agreements with RMR LLC: (1) at any time on 60 days ’ written notice for convenience, (2) immediately on written notice for cause, as defined therein, (3) on written notice given within 60 days after the end of an applicable calendar year for a performance reason, as defined therein, and (4) by written notice during the 12 months following a change of control of RMR LLC, as defined therein. RMR LLC has the right to terminate the management agreements for good reason, as defined therein. • Termination Fee. If we terminate one or both of our management agreements with RMR LLC for convenience, or if RMR LLC terminates one or both of our management agreements for good reason, we have agreed to pay RMR LLC a termination fee in an amount equal to the sum of the present values of the monthly future fees, as defined therein, for the terminated management agreement(s) for the term that was remaining prior to such termination, which, depending on the time of termination, would be between 19 and 20 years. If we terminate one or both of our management agreements with RMR LLC for a performance reason, we have agreed to pay RMR LLC the termination fee calculated as described above, but assuming a 10 year term was remaining prior to the termination. We are not required to pay any termination fee if we terminate our management agreements with RMR LLC for cause or as a result of a change of control of RMR LLC. • Transition Services. RMR LLC has agreed to provide certain transition services to us for 120 days following an applicable termination by us or notice of termination by RMR LLC, including cooperating with us and using commercially reasonable efforts to facilitate the orderly transfer of the management and real estate investment services provided under our business management agreement and to facilitate the orderly transfer of the management of the managed properties under our property management agreement, as applicable. • Vendors. Pursuant to our management agreements with RMR LLC, RMR LLC may from time to time negotiate on our behalf with certain third party vendors and suppliers for the procurement of goods and services to us. As part of this arrangement, we may enter agreements with RMR LLC and other companies to which RMR LLC provides management services for the purpose of obtaining more favorable terms from such vendors and suppliers. • Investment Opportunities . Under our business management agreement with RMR LLC, we acknowledge that RMR LLC may engage in other activities or businesses and act as the manager to any other person or entity (including other REITs) even though such person or entity has investment policies and objectives similar to ours and we are not entitled to preferential treatment in receiving information, recommendations and other services from RMR LLC. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Person Transactions We have relationships and historical and continuing transactions with RMR LLC, RMR Inc. and others related to them. RMR LLC is a subsidiary of RMR Inc. Our Managing Trustee, Adam Portnoy, as the current sole trustee of ABP Trust is the controlling shareholder of RMR Inc. and as the current sole trustee of ABP Trust beneficially owns all the class A membership units of RMR LLC not owned by RMR Inc. Adam Portnoy is the managing director, president and chief executive officer of RMR Inc. and an officer of RMR LLC. Barry Portnoy was our other Managing Trustee and a director and an officer of RMR Inc. until his death on February 25, 2018. Each of our executive officers is also an officer of RMR LLC. Our Independent Trustees also serve as independent directors or independent trustees of other companies to which RMR LLC or its subsidiaries provide management services. Adam Portnoy serves as a managing director or managing trustee of almost all of the public companies to which RMR LLC or its subsidiaries provide management services. In addition, officers of RMR LLC and RMR Inc. serve as our officers and officers of other companies to which RMR LLC or its subsidiaries provide management services. Our Manager, 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. See Note 6 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. Pursuant to our lease agreements with RMR LLC, we recognized rental income from RMR LLC for leased office space of $303 , $366 and $341 for the years ended December 31, 2017, 2016 and 2015, respectively. Our office space leases with RMR LLC are terminable by RMR LLC if our management agreements with RMR LLC are terminated. Share Awards to RMR LLC Employees . We have historically granted share awards to certain RMR LLC employees under our equity compensation plan. During the years ended December 31, 2017, 2016 and 2015, we granted annual share awards of 57,350 , 53,400 and 53,100 of our common shares, respectively, to our officers and to other employees of RMR LLC, valued at $1,067 , $1,183 and $841 , respectively, based upon the closing price of our common shares on the applicable stock exchange on which our common shares were listed on the dates of grant. One fifth of these awards vested on the grant date and one fifth vests on each of the next four anniversaries of the grant date. These awards to RMR LLC employees are in addition to the share awards granted to Adam Portnoy and Barry Portnoy, as our then Managing Trustees, and the fees we paid to RMR LLC. During these periods, we purchased some of our common shares from our trustees and officers and certain other employees of RMR LLC in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares. See Note 11 for further information regarding these purchases. Acquisition of Interest in RMR LLC, Our Manager . On June 5, 2015, we and three other RMR managed REITs - Hospitality Properties Trust, SIR and Senior Housing Properties Trust, or collectively, the Other REITs - participated in a transaction, or the Up-C Transaction, by which we and the Other REITs each acquired shares of class A common stock of RMR Inc. The Up-C Transaction was completed pursuant to a transaction agreement among us, RMR LLC, ABP Trust (RMR LLC’s then sole member) and RMR Inc. and similar transaction agreements that each Other REIT entered into with RMR LLC, ABP Trust and RMR Inc. As part of the Up-C Transaction and concurrently with entering into the transaction agreements, on June 5, 2015, among other things: • We contributed 700,000 of our common shares and $3,917 in cash to RMR Inc. and RMR Inc. issued 1,541,201 shares of its class A common stock to us. • We agreed to distribute approximately half of the shares of class A common stock of RMR Inc. issued to us in the Up-C Transaction to our shareholders as a special distribution. • We entered into amended and restated business and property management agreements with RMR LLC which, among other things, amended the term, termination and termination fee provisions of those agreements. See Note 6 for further information regarding our management agreements with RMR LLC. • We entered into a registration rights agreement with RMR Inc. covering the shares of class A common stock of RMR Inc. issued to us in the Up-C Transaction, pursuant to which we received demand and piggyback registration rights, subject to certain limitations. • We entered into a lock up and registration rights agreement with ABP Trust, Adam Portnoy and Barry Portnoy pursuant to which they agreed not to transfer the 700,000 of our common shares ABP Trust received in the Up-C Transaction for a 10 year period ending on June 5, 2025 and we granted them certain registration rights, subject, in each case, to certain exceptions. Each Other REIT participated in the Up-C Transaction in a similar manner. After giving effect to the Up-C Transaction, RMR LLC became a subsidiary of RMR Inc. and RMR Inc. became the managing member of RMR LLC. Pursuant to the transaction agreements for the Up-C Transaction, on December 14, 2015, we distributed 768,032 shares of class A common stock of RMR Inc. to our shareholders as a special distribution, which represented approximately half of the shares of class A common stock of RMR Inc. issued to us in the Up-C Transaction; each Other REIT also distributed approximately half of the shares of class A common stock of RMR Inc. issued to it in the Up-C Transaction to its respective shareholders. As a shareholder of SIR we received 441,056 class A common shares of RMR Inc. included in such shares that SIR distributed to its shareholders. RMR Inc. facilitated these distributions by filing a registration statement with the SEC to register the shares of class A common stock of RMR Inc. being distributed and by listing those shares on Nasdaq. In connection with this distribution, we recognized a non-cash loss of $12,368 in the fourth quarter of 2015 as a result of the closing price of the class A common stock of RMR Inc. being lower than our carrying amount per share on the distribution date. See Notes 2 and 10 for information regarding the fair value of our investment in RMR Inc. as of December 31, 2017. Through their ownership of class A common stock of RMR Inc., class B-1 common stock of RMR Inc., class B-2 common stock of RMR Inc. and class A membership units of RMR LLC, as of December 31, 2017, our then Managing Trustees, Adam Portnoy and Barry Portnoy, in aggregate held, directly and indirectly (including as trustees of ABP Trust), a 51.9% economic interest in RMR LLC and control 91.4% of the voting power of outstanding capital stock of RMR Inc. We currently hold 1,214,225 shares of class A common stock of RMR Inc., including 441,056 shares of class A common stock of RMR Inc. that SIR distributed to us as a result of our ownership of SIR common shares. SIR. As of December 31, 2017, we were SIR’s largest shareholder, owning approximately 27.8% of the then outstanding SIR common shares. RMR LLC provides management services to both us and SIR. As described further in Note 16, on September 14, 2018, we and SIR entered into a merger agreement and on October 9, 2018, we completed the sale of the SIR investment. Our Managing Trustee, Adam Portnoy, is also the managing trustee of SIR. One of our Independent Trustees also serves as an independent trustee of SIR and our President and Chief Operating Officer also serves as the president and chief operating officer of SIR. On February 28, 2015, we entered into a share purchase agreement, or the SIR Purchase Agreement, with Lakewood Capital Partners, LP, or Lakewood, and certain other related persons, or the Lakewood Parties, and, for the purpose of specified sections, SIR, pursuant to which, on March 4, 2015, we acquired from Lakewood 3,418,421 SIR common shares, representing approximately 3.9% of the then outstanding SIR common shares, for $95,203 . On February 28, 2015, our then Managing Trustees, Adam Portnoy and Barry Portnoy, entered into similar separate share purchase agreements with the Lakewood Parties pursuant to which, on March 4, 2015, Adam Portnoy and Barry Portnoy acquired 87,606 and 107,606 SIR common shares, respectively, from Lakewood and, on March 5, 2015, Adam Portnoy and Barry Portnoy each acquired 2,429 SIR common shares from William H. Lenehan, one of the Lakewood Parties. AIC. We, ABP Trust, SIR and four other companies to which RMR LLC provides management services currently own AIC, an Indiana insurance company, in equal amounts and are parties to a shareholders agreement regarding AIC. All of our Trustees and all of the trustees and directors of the other AIC shareholders currently serve on the board of directors of AIC. RMR LLC provides management and administrative services to AIC pursuant to a management and administrative services agreement with AIC. Pursuant to this agreement, AIC pays to RMR LLC a service fee equal to 3.0% of the total annual net earned premiums payable under then active policies issued or underwritten by AIC or by a vendor or an agent of AIC on its behalf or in furtherance of AIC’s business. We and the other AIC shareholders participate in a combined property insurance program arranged and insured or reinsured in part by AIC. We paid aggregate annual premiums, including taxes and fees, of $757 , $1,032 and $1,277 in connection with this insurance program for the policy years ending June 30, 2018, 2017 and 2016, respectively, which amount for the current policy year ending June 30, 2018 may be adjusted from time to time as we acquire or dispose of properties that are included in this insurance program. As of December 31, 2017, 2016 and 2015, our investment in AIC had a carrying value of $8,304 , $7,235 and $6,946 , respectively. These amounts are included in other assets in our consolidated balance sheets. We recognized income of $608 , $137 and $20 related to our investment in AIC for the years ended December 31, 2017, 2016 and 2015, respectively. These amounts are presented as equity in earnings of an investee in our consolidated statements of comprehensive income. Our other comprehensive income (loss) includes our proportionate part of unrealized gains (losses) on securities which are owned and held for sale by AIC of $461 , $152 and ($20) related to our investment in AIC for the years ended December 31, 2017, 2016 and 2015, respectively. Directors’ and Officers’ Liability Insurance. We, RMR Inc., RMR LLC and certain other companies to which RMR LLC or its subsidiaries provide management services, including SIR, participate in a combined directors’ and officers’ liability insurance policy. This combined policy expires in September 2019. We paid aggregate premiums of $91 , $106 and $316 in 2017, 2016 and 2015, respectively, for these policies. |
Concentration
Concentration | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration | Concentration Tenant and Credit Concentration We define annualized rental income as the annualized contractual base rents from our tenants pursuant to our lease agreements as of the measurement date, plus straight line rent adjustments and estimated recurring expense reimbursements to be paid to us, and excluding lease value amortization. The U.S. Government, 13 state governments, and five other government tenants combined were responsible for approximately 62.6% , 87.9% and 92.8% of our annualized rental income as of December 31, 2017 , 2016 and 2015 , respectively. The U.S. Government is our largest tenant by annualized rental income and was responsible for approximately 43.5% , 60.6% and 67.0% of our annualized rental income as of December 31, 2017 , 2016 and 2015 , respectively. Geographic Concentration At December 31, 2017 , our 108 wholly owned properties ( 167 buildings) were located in 30 states and the District of Columbia. Consolidated properties located in Virginia, the District of Columbia, Maryland, California, Georgia, New York, and Massachusetts were responsible for approximately 23.2% , 17.7% , 14.9% , 9.6% , 5.6% , 4.4% and 3.2% of our annualized rental income as of December 31, 2017 , 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 December 31, 2017 . |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Our principal debt obligations at December 31, 2017 were: (1) $570,000 of outstanding borrowings under our $750,000 unsecured revolving credit facility; (2) $550,000 aggregate outstanding principal amount of term loans; (3) an aggregate outstanding principal amount of $960,000 of public issuances of senior unsecured notes; and (4) $183,147 aggregate principal amount of mortgage notes. Our $750,000 revolving credit facility, our $300,000 term loan and our $250,000 term loan are governed by a credit agreement, 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 December 31, 2017 , on borrowings under our revolving credit facility. We also pay a facility fee on the total amount of lending commitments under our revolving credit facility, which was 25 basis points per annum at December 31, 2017 . Both the interest rate premium and the facility fee are subject to adjustment based upon changes to our credit ratings. As of December 31, 2017 , the annual interest rate payable on borrowings under our revolving credit facility was 2.7% and the weighted average annual interest rate for borrowings under our revolving credit facility was 2.4% , 1.7% and 1.5% , for the years ended December 31, 2017 , 2016 and 2015 . As of December 31, 2017 and February 23, 2018 , we had $570,000 and $595,000 outstanding under our revolving credit facility. 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 December 31, 2017 , on the amount outstanding under our $300,000 term loan. The interest rate premium is subject to adjustment based upon changes to our credit ratings. As of December 31, 2017 , the annual interest rate for the amount outstanding under our $300,000 term loan was 3.0% . The weighted average annual interest rate under our $300,000 term loan was 2.5% , 1.9% and 1.6% , for the years ended December 31, 2017 , 2016 and 2015 , 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 December 31, 2017 , on the amount outstanding under our $250,000 term loan. The interest rate premium is subject to adjustment based upon changes to our credit ratings. As of December 31, 2017 , the annual interest rate for the amount outstanding under our $250,000 term loan was 3.4% . The weighted average annual interest rate under our $250,000 term loan was 2.9% , 2.3% and 2.0% , for the years ended December 31, 2017 , 2016 and 2015 , 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 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 December 31, 2017 . On July 20, 2017, we issued $300,000 of 4.000% senior unsecured notes due 2022 in an underwritten public offering. The net proceeds from this offering of $295,399 , after payment of the underwriters' discount and other offering expenses, were used to finance, in part, the FPO Transaction. In May 2016, we issued $300,000 of 5.875% senior unsecured notes due 2046 in an underwritten public offering. In June 2016, the underwriters exercised an option to purchase an additional $10,000 of these notes. The net proceeds from this offering of $299,691 , after offering expenses, were used to repay all amounts then outstanding under our revolving credit facility and for general business purposes As described in Note 5, in connection with the FPO Transaction we assumed five mortgage notes with an aggregate principal balance of $167,548 . We recorded these mortgage notes at their estimated fair value aggregating $167,936 on the date of acquisition. These mortgage notes are secured by five properties ( five buildings). In November 2017, we repaid $10,000 of principal of one of these mortgage notes as part of our assumption agreement with the lender. In connection with the FPO Transaction, we acquired FPO's 50% and 51% interests in two unconsolidated joint ventures with two mortgage notes with an aggregate principal balance of $82,000 , which are encumbered by two properties ( three buildings) owned by such joint ventures. Concurrently with our entering into the FPO merger agreement, we entered a commitment letter with a group of institutional lenders for a 364 -day senior unsecured bridge loan facility in an initial aggregate principal amount of up to $750,000 . In July 2017, we and the lenders terminated this commitment letter and bridge loan facility as a result of our issuance of the senior unsecured notes described above and the proceeds from the sale of our common shares in July 2017 (see Note 11 for more information regarding this sale), and we recognized a loss on extinguishment of debt of $1,715 . In February 2016, we repaid, at par, a $23,473 mortgage note requiring annual interest of 6.21% which was secured by one office property ( one building) located in Landover, MD. This mortgage note was scheduled to mature in August 2016. We recorded a loss on extinguishment of debt of $21 for the year ended December 31, 2017 , which represented unamortized debt issuance costs related to this note. In March 2016, we repaid, at par, an $83,000 mortgage note requiring annual interest of 5.55% which was secured by one office property ( two buildings) located in Reston, VA. This mortgage note was scheduled to mature in April 2016. We recorded a gain on extinguishment of debt of $125 for the year ended December 31, 2017 , which represented the net unamortized debt premium and debt issuance costs related to this note. At December 31, 2017 , eight of our consolidated properties ( eight buildings) with an aggregate net book value of $432,562 are encumbered by eight mortgages for an aggregate principal amount of $183,147 . Our mortgage notes are non-recourse, subject to certain limited exceptions and do not contain any material financial covenants. None of our unsecured debt obligations require sinking fund payments prior to their maturity dates. The required principal payments due during the next five years and thereafter under all our outstanding consolidated debt as of December 31, 2017 are as follows: Year Principal payment 2018 $ 3,672 2019 931,541 2020 338,433 2021 14,420 2022 575,518 Thereafter 399,563 $ 2,263,147 (1) (1) Total consolidated debt outstanding as of December 31, 2017 , net of unamortized premiums, discounts and certain issuance costs totaling $18,055 was $2,245,092 . |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities The table below presents certain of our assets measured at fair value at December 31, 2017 , categorized by the level of inputs, as defined in the fair value hierarchy under GAAP, used in the valuation of each asset: Fair Value at Reporting Date Using Quoted Prices in Significant Estimated Active Markets for Significant Other Unobservable Fair Identical Assets Observable Inputs Inputs Description Value (Level 1) (Level 2) (Level 3) Recurring Fair Value Measurements Assets: Investment in RMR Inc. (1) $ 72,005 $ 72,005 $ — $ — Non-Recurring Fair Value Measurements Assets: One property (2) $ 19,667 $ — $ 19,667 $ — (1) Our 1,214,225 shares of class A common stock of RMR Inc., which are included in other assets in our 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 December 31, 2017 . The net unrealized gain of $45,116 for these shares as of December 31, 2017 is included in cumulative other comprehensive income (loss) in our consolidated balance sheets. (2) We estimated the fair value of a property we agreed to sell located in Minneapolis, MN at December 31, 2017 based upon the selling price agreed to with a third party (Level 2 inputs as defined in the fair value hierarchy under GAAP). See Note 5 for further details. In addition to the assets described in the table above, our financial instruments include cash and cash equivalents, restricted cash, rents receivable, mortgage note receivable, accounts payable, a revolving credit facility, term loans, senior unsecured notes, mortgage notes payable, amounts due to related persons, other accrued expenses and security deposits. At December 31, 2017 and December 31, 2016 , the fair values of our financial instruments approximated their carrying values in our consolidated financial statements due to their short term nature or variable interest rates, except as follows: As of December 31, 2017 As of December 31, 2016 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Senior unsecured notes, 3.750% interest rate, due in 2019 $ 348,096 $ 354,993 $ 346,952 $ 354,078 Senior unsecured notes, 5.875% interest rate, due in 2046 300,232 320,416 299,892 292,268 Senior unsecured notes, 4.000% interest rate, due in 2022 295,812 302,655 — — Mortgage note payable, 4.050% interest rate, due in 2030 (2)(3) 64,293 65,198 — — Mortgage note payable, 5.720% interest rate, due in 2020 (2)(3) 36,085 36,332 — — Mortgage note payable, 4.220% interest rate, due in 2022 (2)(3) 27,906 28,432 — — Mortgage note payable, 4.800% interest rate, due in 2023 (2)(3) 25,501 25,904 — — Mortgage note payable, 5.877% interest rate, due in 2021 (2) 13,620 14,565 13,841 14,492 Mortgage note payable, 7.000% interest rate, due in 2019 (2) 8,391 8,555 8,778 9,188 Mortgage note payable, 8.150% interest rate, due in 2021 (2) 4,111 4,340 5,218 5,575 Mortgage note payable, 4.260% interest rate, due in 2020 (2)(3) 3,193 3,216 — — $ 1,127,240 $ 1,164,606 $ 674,681 $ 675,601 (1) Carrying amount includes certain unamortized debt issuance costs and unamortized premiums and discounts. (2) We assumed these mortgages in connection with our acquisitions of the encumbered properties. The stated interest rates for these mortgage debts are the contractually stated rates. We recorded the assumed mortgages at estimated fair value on the date of acquisition and we are amortizing the fair value premiums, if any, to interest expense over the respective terms of the mortgages to reduce interest expense to the estimated market interest rates as of the date of acquisition. (3) In connection with the FPO Transaction, we assumed five fixed rate mortgage notes with an aggregate principal balance of $167,548 . We recorded these mortgage notes at their estimated fair value aggregating $167,936 on the date of acquisition. We estimated the fair value of our senior unsecured notes due in 2019 and 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 in 2046 based on the closing price on Nasdaq (Level 1 inputs as defined in the fair value hierarchy under GAAP) as of the measurement date. We estimated the fair values of our mortgage notes payable by using discounted cash flow analyses and currently prevailing market terms as of the measurement date (Level 3 inputs as defined in the fair value hierarchy under GAAP). Because Level 3 inputs are unobservable, our estimated fair value may differ materially from the actual fair value. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | Note 11 . Shareholders’ Equity Share Awards: We have common shares available for issuance under the terms of our 2009 Incentive Share Award Plan, or the 2009 Plan. As described in Note 7 , we granted common share awards to our officers and certain other employees of RMR LLC in 2017 , 2016 and 2015 . We also granted each of our then six Trustees 3,000 common shares in 2017 with an aggregate value of $392 ( $65 per Trustee), each of our then five Trustees 2,500 common shares in 2016 with an aggregate value of $244 ( $49 per Trustee) and each of our then five Trustees 2,500 common shares in 2015 with an aggregate value of $247 ( $49 per Trustee) as part of their annual compensation. The values of the share grants were based upon the closing price of our common shares trading on Nasdaq or the New York Stock Exchange, as applicable, on the date of grant. The common shares awarded to our Trustees vested immediately. The common shares granted to our officers and certain other employees of RMR LLC vest in five equal annual installments beginning on the date of grant. A summary of shares granted, forfeited, vested and unvested under the terms of the 2009 Plan for the years ended December 31, 2017 , 2016 and 2015 , is as follows: 2017 2016 2015 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Unvested shares, beginning of year 98,970 $20.59 96,725 $20.11 90,338 $23.40 Shares granted 75,350 19.36 65,900 21.66 65,600 16.59 Shared forfeited — — — — (1,020 ) 23.41 Shares vested (70,070 ) 20.80 (63,655 ) 20.97 (58,193 ) 21.20 Unvested shares, end of year 104,250 $19.56 98,970 $20.59 96,725 $20.11 The 104,250 unvested shares as of December 31, 2017 are scheduled to vest as follows: 40,120 shares in 2018, 31,230 shares in 2019, 21,630 shares in 2020 and 11,270 shares in 2021. These unvested shares are re-measured at fair value on a recurring basis using quoted market prices of the underlying shares. As of December 31, 2017 , the estimated future compensation expense for the unvested shares was $1,933 based on the closing share price of our common shares on Nasdaq on December 31, 2017 of $18.54 . The weighted average period over which the compensation expense will be recorded is approximately 21 months. During the years ended December 31, 2017 , 2016 and 2015 , we recorded $ 1,377 , $1,371 and $932 , respectively, of compensation expense related to the 2009 Plan. At December 31, 2017 , 1,493,119 of our common shares remained available for issuance under the 2009 Plan. Distributions: Cash distributions paid or payable by us to our common shareholders for the years ended December 31, 2017 , 2016 and 2015 were $1.72 per share or $145,209 , $122,366 and $121,660 , respectively. As described in Note 7 , on December 14, 2015, we distributed 768,032 , or 0.0108 of a share for each of our common shares, of RMR Inc. shares of class A common stock we owed to our common shareholders as a special distribution. This distribution resulted in a taxable in-kind distribution of $0.1284 for each of our common shares. The characterization of our distributions paid in 2017 was 50.65% ordinary income and 49.35% return of capital. The characterization of our distributions paid in 2016 was 62.74% ordinary income, 36.21% return of capital and 1.05% qualified dividend. The characterization of our distributions paid in 2015 was 47.44% ordinary income, 37.12% return of capital, 12.90% capital gain, 1.61% IRC Section 1250 gain and 0.93% qualified dividend. On January 19, 2018, we declared a dividend payable to common shareholders of record on January 29, 2018 in the amount of $0.43 per share, or $42,633 . We expect to pay this distribution on or about February 26, 2018 using cash on hand and borrowings under our revolving credit facility. Sale of Shares: On July 5, 2017, we sold 25,000,000 of our common shares at a price of $18.50 per share in an underwritten public offering. On August 3, 2017, we sold 2,907,029 of our common shares at a price of $18.50 per share pursuant to an overallotment option granted to the underwriters for the July offering. The aggregate net proceeds from these sales of $493,866 , after payment of the underwriters' discount and other offering expenses, were used to finance, in part, the FPO Transaction. 2017 and 2018 Share Purchases: On May 17, 2017, we withheld 450 of our common shares awarded to one of our Trustees to fund that Trustee's resulting minimum required tax withholding obligation. The aggregate value of the withheld shares was $10 , which is reflected as a decrease to shareholders' equity in our consolidated balance sheets. During 2017, we purchased 13,914 of our common shares valued at a weighted average price per share of $18.30 , based on the closing price of our common shares on Nasdaq, on the date of purchase, from our officers and certain other employees of RMR LLC in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares. In January 2018, we purchased 617 of our common shares valued at a price per share of $18.54 , based on the closing price of our common shares on Nasdaq, on the date of purchase, from a former officer of RMR LLC in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares. 2016 Share Purchases: In September 2016, we purchased an aggregate of 14,302 of our common shares valued at an average price per common share of $23.54 per common share, based on the closing price of our common shares on Nasdaq on the dates of purchase, from our officers and certain other employees of RMR LLC in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares. Cumulative Other Comprehensive Income (Loss) Cumulative other comprehensive income (loss) represents the unrealized gain (loss) on the RMR Inc. shares we own and our share of the comprehensive income (loss) of our equity method investees we own as of December 31, 2017, SIR and AIC. The following table presents changes in the amounts we recognized in cumulative other comprehensive income (loss) by component for the years ended December 31, 2017 , 2016 and 2015 : Unrealized Gain (Loss) on Investment in Available for Sale Securities Equity in Unrealized Gains (Losses) of Investees Total Balance at December 31, 2014 $ — $ 37 $ 37 Other comprehensive loss before reclassifications (9,391 ) (5,592 ) (14,983 ) Amounts reclassified from cumulative other comprehensive loss to net income (1) — 79 79 Net current period other comprehensive loss (9,391 ) (5,513 ) (14,904 ) Balance at December 31, 2015 (9,391 ) (5,476 ) (14,867 ) Other comprehensive income before reclassifications 30,465 11,254 41,719 Amounts reclassified from cumulative other comprehensive income to net income (1) — 105 105 Net current period other comprehensive income 30,465 11,359 41,824 Balance at December 31, 2016 21,074 5,883 26,957 Other comprehensive income before reclassifications 24,042 9,462 33,504 Amounts reclassified from cumulative other comprehensive income to net income (loss) (1) — (34 ) (34 ) Net current period other comprehensive income 24,042 9,428 33,470 Balance at December 31, 2017 $ 45,116 $ 15,311 $ 60,427 (1) Amounts reclassified from cumulative other comprehensive income (loss) is included in equity in earnings of investees in our consolidated statements of comprehensive income (loss). |
Equity Investment in Select Inc
Equity Investment in Select Income REIT | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investment in Select Income REIT | Equity Investment in Select Income REIT As described in Note 7 , as of December 31, 2017 , we owned 24,918,421 , or approximately 27.8% , of the then outstanding SIR common shares. SIR is a REIT which primarily owns single tenant, net leased properties. We accounted for the SIR investment under the equity method. The SIR investment has been reclassified to discontinued operations in our consolidated financial statements as of December 31, 2017 . See Note 13 for further details. Under the equity method, we record our proportionate share of SIR’s net income as equity in earnings of SIR included in discontinued operations in our consolidated statements of comprehensive income (loss). During the years ended December 31, 2017 , 2016 and 2015 , we recorded $21,584 , $35,381 and $21,882 of equity in earnings of SIR, respectively. Our other comprehensive income (loss) includes our proportionate share of SIR’s unrealized gains (losses) of $8,967 , $11,207 and ($5,493) for the years ended December 31, 2017 , 2016 and 2015 , respectively. The cost of our investments in SIR exceeded our proportionate share of SIR’s total shareholders’ equity book value on their dates of acquisition by an aggregate of $166,272 . As required under GAAP, we were amortizing this difference to equity in earnings of investees over the average remaining useful lives of the real estate assets and intangible assets and liabilities owned by SIR as of the respective dates of our acquisitions. This amortization decreased our equity in the earnings of SIR by $4,742 for the year ended December 31, 2015 . We recorded a loss on impairment of $203,297 of our SIR investment during the second quarter of 2015 resulting in the carrying value of our SIR investment being less than our proportionate share of SIR’s total shareholders’ equity book value as of June 30, 2015. As a result, the previous basis difference was eliminated and as of December 31, 2017 , we are accreting a basis difference of ($87,137) to earnings over the estimated remaining useful lives of the real estate assets and intangible assets and liabilities owned by SIR as of June 30, 2015. This accretion increased our equity in the earnings of SIR by $2,944 and $2,956 for the years ended December 31, 2017 and 2016 , respectively. As of December 31, 2017 , the SIR investment had a carrying value of $467,499 and a market value, based on the closing price of SIR common shares on Nasdaq on December 29, 2017, of $626,200 . 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 years ended December 31, 2017 , 2016 and 2015 , we received cash distributions from SIR totaling $50,832 , $50,335 and $47,030 , respectively. In addition, during the year ended December 31, 2015, we received from SIR a non-cash distribution of 441,056 shares of RMR Inc. class A common stock valued at $5,244 . During years ended December 31, 2017 , 2016 and 2015 , SIR issued 59,502 , 65,900 and 29,414,279 common shares, respectively. We recognized a gain (loss) on issuance of shares by SIR of $72 , $86 and ($42,145) , respectively, during the years ended December 31, 2017 , 2016 and 2015 as a result of the per share issuance price of these SIR common shares being above (below) the then average per share carrying value of our SIR common shares. The following presents summarized financial data of SIR as reported in SIR’s Annual Report on Form 10-K for the year ended December 31, 2017 , or the SIR Annual Report. References in our consolidated financial statements to the SIR Annual Report are included as references to the source of the data only, and the information in the SIR Annual Report is not incorporated by reference into our consolidated financial statements. Consolidated Balance Sheets As of December 31, 2017 2016 Real estate properties, net $ 3,905,616 $ 3,899,792 Properties held for sale 5,829 — Acquired real estate leases, net 477,577 506,298 Cash and cash equivalents 658,719 22,127 Rents receivable, net 127,672 124,089 Other assets, net 127,617 87,376 Total assets $ 5,303,030 $ 4,639,682 Unsecured revolving credit facility $ — $ 327,000 ILPT revolving credit facility 750,000 — Unsecured term loan, net 348,870 348,373 Senior unsecured notes, net 1,777,425 1,430,300 Mortgage notes payable, net 210,785 245,643 Assumed real estate lease obligations, net 68,783 77,622 Other liabilities 155,348 136,782 Shareholders' equity 1,991,819 2,073,962 Total liabilities and shareholders' equity $ 5,303,030 $ 4,639,682 Consolidated Statements of Income Year Ended December 31, 2017 2016 2015 Rental income $ 392,285 $ 387,015 $ 364,139 Tenant reimbursements and other income 75,818 74,992 64,226 Total revenues 468,103 462,007 428,365 Real estate taxes 44,131 42,879 37,460 Other operating expenses 55,567 52,957 41,953 Depreciation and amortization 137,672 133,762 122,906 Acquisition and transaction related costs 1,075 306 21,987 General and administrative 54,818 28,602 25,859 Write-off of straight line rents receivable, net 12,517 5,484 — Loss on asset impairment 4,047 — — Loss on impairment of real estate assets 229 — — Total expenses 310,056 263,990 250,165 Operating income 158,047 198,017 178,200 Dividend income 1,587 1,268 1,666 Interest expense (92,870 ) (82,620 ) (73,885 ) Loss on early extinguishment of debt — — (6,845 ) Loss on distribution to common shareholders of The RMR Group Inc. common stock — — (23,717 ) Income before income tax expense and equity in earnings of an investee 66,764 116,665 75,419 Income tax expense (466 ) (448 ) (515 ) Equity in earnings of an investee 608 137 20 Net income 66,906 116,354 74,924 Net income allocated to noncontrolling interest — (33 ) (176 ) Net income attributed to SIR $ 66,906 $ 116,321 $ 74,748 Weighted average common shares outstanding (basic) 89,351 89,304 86,699 Weighted average common shares outstanding (diluted) 89,370 89,324 $ 86,708 Net income attributed to SIR per common share (basic and diluted) $ 0.75 $ 1.30 $ 0.86 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On October 9, 2018, we sold all 24,918,421 SIR common shares that we then owned in an underwritten public offering at a price of $18.25 per share, raising net proceeds of approximately $434,700 after underwriting discounts and estimated offering expenses. We used the net proceeds from the sale to repay amounts outstanding under our revolving credit facility. We expect to record a loss on sale of approximately $19,372 in the fourth quarter of 2018. The sale of the SIR common shares qualifies as discontinued operations and our equity method investment in SIR has been classified as discontinued operations in the accompanying consolidated financial statements as of the earliest period presented. Consequently, consolidated financial statements have been recast from amounts previously reported to reflect our equity method investment in SIR as discontinued operations. Other changes to amounts and disclosures have been made to the consolidated financial statements to reflect this change as appropriate. As described in Note 5, in August 2017, we sold one vacant office property ( one building) in Falls Church, VA with 164,746 rentable square feet and a net book value of $12,901 as of the date of sale for $13,523 , excluding closing costs. Results of operations for this property, which qualified as held for sale prior to our adoption in 2014 of ASU No. 2014-8, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity , are classified as discontinued operations in our consolidated financial statements. Below are the components of our income from discontinued operations: Year Ended December 31, 2017 2016 2015 Net gain (loss) on issuance of shares by Select Income REIT $ 72 $ 86 $ (42,145 ) Loss on impairment of Select Income REIT investment — — (203,297 ) Equity in earnings of Select Income REIT 21,584 35,381 18,620 Income (loss) from property discontinued operations 173 (589 ) (525 ) Income (loss) from discontinued operations $ 21,829 $ 34,878 $ (227,347 ) |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following is a summary of our unaudited quarterly results of operations for 2017 and 2016 . 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Rental income $ 69,296 $ 69,887 $ 70,179 $ 107,170 Net income (loss) available for common shareholders per common share $ 7,415 $ 11,677 $ 10,989 $ (18,266 ) Net income (loss) available for common shareholders per common share (basic and diluted) $ 0.10 $ 0.16 $ 0.11 $ (0.18 ) Common distributions declared $ 0.43 $ 0.43 $ 0.43 $ 0.43 2016 First Second Third Fourth Rental income $ 63,611 $ 64,061 $ 64,478 $ 66,030 Net income available for common shareholders $ 17,387 $ 16,813 $ 11,578 $ 12,065 Net income available for common shareholders per common share (basic and diluted) $ 0.24 $ 0.24 $ 0.16 $ 0.17 Common distributions declared $ 0.43 $ 0.43 $ 0.43 $ 0.43 |
Retrospective Effect of Change
Retrospective Effect of Change in Adoption of Accounting Standards | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Retrospective Effect of Change in Adoption of Accounting Standards | Retrospective Effect of Change in Adoption of Accounting Standards 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 $2,945 , $2,956 of accretion, and $3,262 of amortization recorded in our equity in the earnings of Select Income REIT, or SIR, from cash flow from investing activities to cash flow from operating activities for 2017, 2016 and 2015, respectively. See Notes 12 and 13 for further information regarding the SIR investment. 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 $1,563 , an increase of $492 , and an increase of $1,258 of net cash provided by operating activities for 2017, 2016 and 2015, respectively. 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 consolidated balance sheets are included with cash and cash equivalents on the 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 $3,111 and $530 as of December 31 2017 and 2016, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On September 14, 2018, we and our wholly owned subsidiary, GOV MS REIT, or Merger Sub, entered into an Agreement and Plan of Merger, or the Merger Agreement, with SIR, pursuant to which SIR has agreed to merge with and into Merger Sub, with Merger Sub continuing as the surviving entity in the merger, or the Merger. Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger, or the Effective Time, each common share of SIR issued and outstanding immediately prior to the Effective Time will be converted into the right to receive 1.04 , or the Exchange Ratio, of our newly issued common shares, subject to adjustment as described in the Merger Agreement, with cash paid in lieu of fractional shares. The Exchange Ratio is fixed and will not be adjusted to reflect changes in the market price of our common shares or SIR common shares prior to the Effective Time. At the Effective Time, any outstanding unvested SIR common share awards under SIR’s equity compensation plan will be converted into an award under our equity compensation plan, subject to substantially similar vesting requirements and other terms and conditions, of a number of our common shares determined by multiplying the number of unvested SIR common shares subject to such award by the Exchange Ratio (rounded down to the nearest whole number). Also pursuant to the Merger Agreement, we and SIR agreed that, prior to the Effective Time, we would sell, for cash consideration, all 24,918,421 SIR common shares owned by us, or the Secondary Sale, which Secondary Sale was completed on October 9, 2018 as further described below, and further that, subject to the satisfaction of certain conditions, SIR will declare and, at least one business day prior to the closing date of the Merger, pay a pro rata distribution to its shareholders of all 45,000,000 common shares of its majority owned subsidiary, Industrial Logistics Properties Trust that SIR owns, or the ILPT Distribution. Following the ILPT Distribution and upon the closing of the Merger, we will acquire SIR's remaining property portfolio of 99 properties with approximately 16,538,462 rentable square feet. The aggregate transaction value, based on the closing price of our common shares on September 30, 2018 of $11.29 per share, is approximately $2,738,488 , excluding estimated closing costs of $40,000 and including the repayment or assumption of $1,720,000 of SIR debt. The Merger and the other transactions contemplated by the Merger Agreement, including the Secondary Sale and the ILPT Distribution, are collectively referred to herein as the Transactions. We expect that immediately after the Merger is effective, Merger Sub will then merge with and into us, with us as the surviving entity, and we will change our name to “Office Properties Income Trust,” following which our ticker symbol on The Nasdaq Stock Market LLC, or Nasdaq, will be changed to “OPI”. We also expect that immediately following that second merger, the combined company will effect a reverse stock split of its common shares pursuant to which every four common shares of the combined company will be converted into one common share of the combined company. The combined company will continue to be managed by The RMR Group LLC, or RMR LLC, pursuant to our existing business and property management agreements with RMR LLC. The completion of the Merger is subject to the satisfaction or waiver of various conditions, including, among other things, approval by our shareholders of the issuance of our common shares in the Merger and by SIR’s shareholders of the Merger and the other Transactions to which SIR is a party, the absence of any law or order by any governmental authority prohibiting, making illegal, enjoining or otherwise restricting, preventing or prohibiting the consummation of the Merger and the other Transactions, the effectiveness of the registration statement on Form S-4, as amended, or the Form S-4, filed by us with the Securities and Exchange Commission, or SEC, to register our common shares to be issued in the Merger and the approval of Nasdaq for the listing of such shares on Nasdaq, subject to official notice of issuance, and, subject to the satisfaction of certain other conditions, the payment of the ILPT Distribution at least one business day before the completion of the Merger. We and SIR expect to consummate the Merger by December 31, 2018. The Merger Agreement provides that either party may terminate the Merger Agreement if the Merger is not consummated by the outside closing date of June 30, 2019. Contemporaneously with the execution of the Merger Agreement, and in connection with the Secondary Sale, we entered into a registration agreement with SIR, or the Registration Agreement, pursuant to which we received demand registration rights, subject to certain limitations, with respect to the Secondary Sale. The Registration Agreement provides that we will pay all the costs and expenses incurred in connection with the Secondary Sale, including costs and expenses incurred by SIR and its affiliates. On October 9, 2018, pursuant to the terms of the Registration Agreement, we sold all 24,918,421 SIR common shares in the Secondary Sale that we then owned in an underwritten public offering at a price of $18.25 per share, raising net proceeds of approximately $434,700 after deducting underwriting discounts and estimated offering expenses. We used the net proceeds from the Secondary Sale to repay amounts outstanding under our revolving credit facility. |
SCHEDULE III REAL ESTATE AND AC
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2017 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | Initial Cost to Company Costs Capitalized Subsequent to Acquisition Cost amount carried at Close of Period Property Location Encumbrances (1) Land Buildings Impairments/ Land Buildings Total (2) Accumulated (3) Date(s) Original 1 131 Clayton Street Montgomery, AL $ — $ 920 $ 9,084 $ 29 $ — $ 920 $ 9,113 $ 10,033 $ (1,479 ) 6/22/2011 2007 2 4344 Carmichael Road Montgomery, AL — 1,374 11,658 — — 1,374 11,658 13,032 (1,166 ) 12/17/2013 2009 3 15451 North 28th Avenue Phoenix, AZ — 1,917 7,416 456 — 1,917 7,872 9,789 (628 ) 9/10/2014 1996 4 711 S 14th Avenue Safford, AZ — 460 11,708 348 — 460 12,056 12,516 (2,232 ) 6/16/2010 1992 5 5045 East Butler Street Fresno, CA — 7,276 61,118 58 — 7,276 61,176 68,452 (23,497 ) 8/29/2002 1971 6 10949 N. Mather Boulevard Rancho Cordova, CA — 562 16,923 101 — 562 17,024 17,586 (1,769 ) 10/30/2013 2012 7 11020 Sun Center Drive Rancho Cordova, CA — 1,466 8,797 408 — 1,466 9,205 10,670 (237 ) 12/20/2016 1983 8 801 K Street Sacramento, CA — 4,688 61,995 4,915 — 4,688 66,910 71,598 (3,608 ) 1/29/2016 1989 9 9800 Goethe Road Sacramento, CA — 1,550 12,263 949 — 1,550 13,212 14,762 (2,598 ) 12/23/2009 1993 10 9815 Goethe Road Sacramento, CA — 1,450 9,465 1,523 — 1,450 10,988 12,438 (1,731 ) 9/14/2011 1992 11 Capitol Place Sacramento, CA — 2,290 35,891 7,032 — 2,290 42,923 45,213 (8,331 ) 12/17/2009 1988 12 4181 Ruffin Road San Diego, CA — 5,250 10,549 4,294 — 5,250 14,843 20,093 (3,332 ) 7/16/2010 1981 13 4560 Viewridge Road San Diego, CA — 4,269 18,316 4,195 — 4,347 22,433 26,780 (9,882 ) 3/31/1997 1996 14 9174 Sky Park Centre San Diego, CA — 685 5,530 2,653 — 685 8,183 8,868 (2,684 ) 6/24/2002 1986 15 603 San Juan Avenue Stockton, CA — 563 5,470 — — 563 5,470 6,033 (741 ) 7/20/2012 2012 16 16194 West 45th Street Golden, CO — 494 152 6,495 — 494 6,647 7,141 (3,316 ) 3/31/1997 1997 17 12795 West Alameda Parkway Lakewood, CO 4,111 2,640 23,777 1,065 — 2,640 24,842 27,482 (4,931 ) 1/15/2010 1988 18 Corporate Center Lakewood, CO — 2,887 27,537 3,898 — 2,887 31,435 34,322 (11,581 ) 10/11/2002 1980 19 20 Massachusetts Avenue Washington, DC — 12,009 51,528 21,245 — 12,231 72,551 84,782 (33,237 ) 3/31/1997 1996 20 625 Indiana Avenue Washington, DC — 26,000 25,955 6,555 — 26,000 32,510 58,510 (6,374 ) 8/17/2010 1989 21 11 Dupont Circle, NW Washington, DC 64,293 28,255 44,743 1,299 — 28,255 46,042 74,297 (316 ) 10/2/2017 1974 22 1211 Connecticut Avenue, NW Washington, DC 27,906 30,388 24,667 220 — 30,388 24,887 55,275 (176 ) 10/2/2017 1967 23 1401 K Street, NW Washington, DC 25,501 29,215 34,656 1,194 — 29,215 35,850 65,065 (291 ) 10/2/2017 1929 24 440 First Street, NW Washington, DC — 27,903 38,624 683 — 27,903 39,307 67,210 (241 ) 10/2/2017 1982 25 500 First Street, NW Washington, DC — 30,478 15,660 — — 30,478 15,660 46,138 (112 ) 10/2/2017 1969 26 840 First Street, NE Washington, DC 36,085 42,727 73,249 — — 42,727 73,249 115,976 (458 ) 10/2/2017 2003 27 7850 Southwest 6th Court Plantation, FL — 4,800 30,592 383 — 4,800 30,975 35,775 (5,224 ) 5/12/2011 1999 28 8900 Grand Oak Circle Tampa, FL 8,391 1,100 11,773 169 — 1,100 11,942 13,042 (2,169 ) 10/15/2010 1994 Initial Cost to Company Costs Capitalized Subsequent to Acquisition Cost amount carried at Close of Period Property Location Encumbrances (1) Land Buildings Impairments/ Land Buildings Total (2) Accumulated (3) Date(s) Original 29 181 Spring Street NW Atlanta, GA $ — 5,717 $ 20,017 136 $ — 5,717 20,153 25,871 (2,719 ) 7/25/2012 2007 30 Corporate Square Atlanta, GA — 3,996 29,762 27,321 — 3,996 57,083 61,079 (11,541 ) 7/16/2004 1967 31 Executive Park Atlanta, GA — 1,521 11,826 4,003 — 1,521 15,829 17,350 (5,127 ) 7/16/2004 1972 32 One Georgia Center Atlanta, GA — 10,250 27,933 3,581 — 10,250 31,514 41,764 (4,576 ) 9/30/2011 1968 33 4712 Southpark Boulevard Ellenwood, GA — 1,390 19,635 74 — 1,390 19,709 21,099 (2,661 ) 7/25/2012 2005 34 1185, 1249 & 1387 S. Vinnell Way Boise, ID — 3,390 29,026 802 — 3,390 29,828 33,218 (4,059 ) 9/11/2012 1996; 1997; 2002 35 2020 S. Arlington Heights Arlington Heights, IL — 1,450 13,160 730 — 1,450 13,890 15,340 (2,746 ) 12/29/2009 1988 36 Intech Park Indianapolis, IN — 4,170 68,888 3,822 — 4,170 72,710 76,880 (11,657 ) 10/14/2011 2000; 2001; 2008 37 400 State Street Kansas City, KS — 640 9,932 4,599 — 640 14,531 15,171 (2,559 ) 6/16/2010 1971 38 7125 Industrial Road Florence, KY — 1,698 11,722 81 — 1,698 11,803 13,501 (1,468 ) 12/31/2012 1980 39 251 Causeway Street Boston, MA — 5,100 17,293 1,752 — 5,100 19,045 24,145 (3,427 ) 8/17/2010 1987 40 75 Pleasant Street Malden, MA — 1,050 31,086 159 — 1,050 31,245 32,295 (5,970 ) 5/24/2010 2008 41 25 Newport Avenue Quincy, MA — 2,700 9,199 1,297 — 2,700 10,496 13,196 (1,662 ) 2/16/2011 1985 42 One Montvale Avenue Stoneham, MA — 1,670 11,035 2,095 — 1,670 13,130 14,800 (2,308 ) 6/16/2010 1945 43 Annapolis Commerce Center Annapolis, MD — 4,057 7,665 — — 4,057 7,665 11,722 (55 ) 10/2/2017 1989 44 4201 Patterson Avenue Baltimore, MD — 901 8,097 3,976 — 901 12,073 12,974 (4,520 ) 10/15/1998 1989 45 Ammendale Commerce Center Beltsville, MD — 4,879 9,498 — — 4,879 9,498 14,377 (70 ) 10/2/2017 1987 46 Indian Creek Technology Park Beltsville, MD — 8,796 12,093 24 — 8,796 12,117 20,913 (86 ) 10/2/2017 1988 47 Gateway 270 West Clarksburg, MD — 12,104 9,688 — — 12,104 9,688 21,792 (64 ) 10/2/2017 2002 48 Hillside Center Columbia, MD — 3,437 4,228 — — 3,437 4,228 7,665 (25 ) 10/2/2017 2001 49 Snowden Center Columbia, MD — 7,955 10,128 54 — 7,955 10,182 18,137 (63 ) 10/2/2017 1982 50 TenThreeTwenty Columbia, MD — 3,126 16,361 118 — 3,126 16,479 19,605 (103 ) 10/2/2017 1982 51 20400 Century Boulevard Germantown, MD — 2,305 9,890 1,282 — 2,347 11,130 13,477 (5,296 ) 3/31/1997 1995 52 Cloverleaf Center Germantown, MD — 11,890 4,639 — — 11,890 4,639 16,529 (39 ) 10/2/2017 2000 53 3300 75th Avenue Landover, MD — 4,110 36,371 1,045 — 4,110 37,416 41,526 (7,271 ) 2/26/2010 1985 54 1401 Rockville Pike Rockville, MD — 3,248 29,258 16,534 — 3,248 45,792 49,040 (17,237 ) 2/2/1998 1986 55 2115 East Jefferson Street Rockville, MD — 3,349 11,152 328 — 3,349 11,480 14,829 (1,229 ) 8/27/2013 1981 56 Metro Park North Rockville, MD — 11,159 7,624 — — 11,159 7,624 18,783 (59 ) 10/2/2017 2001 Initial Cost to Company Costs Capitalized Subsequent to Acquisition Cost amount carried at Close of Period Property Location Encumbrances (1) Land Buildings Impairments/ Land Buildings Total (2) Accumulated (3) Date(s) Original 57 Redland 520/530 Rockville, MD — 12,714 61,377 1,217 — 12,714 62,594 75,308 (384 ) 10/2/2017 2008 58 Redland 540 Rockville, MD — 10,740 17,714 2,028 — 10,740 19,742 30,482 (111 ) 10/2/2017 2003 59 Rutherford Business Park Windsor Mill, MD — 1,598 10,219 10 — 1,598 10,229 11,827 (1,299 ) 11/16/2012 1972 60 Meadows Business Park Woodlawn, MD — 3,735 21,509 2,187 — 3,735 23,696 27,431 (3,907 ) 2/15/2011 1973 61 11411 E. Jefferson Avenue Detroit, MI — 630 18,002 358 — 630 18,360 18,990 (3,460 ) 4/23/2010 2009 62 330 2nd Avenue South Minneapolis, MN — 3,991 18,186 (4,246 ) (9,260 ) 1,489 16,442 17,931 — 7/16/2010 1980 63 Rosedale Corporate Plaza Roseville, MN — 672 6,045 1,505 — 672 7,550 8,222 (3,194 ) 12/1/1999 1987 64 1300 Summit Street Kansas City, MO — 2,776 12,070 253 — 2,776 12,323 15,099 (1,614 ) 9/27/2012 1998 65 4241-4300 NE 34th Street Kansas City, MO — 1,443 6,193 3,851 — 1,780 9,707 11,487 (3,893 ) 3/31/1997 1995 66 1220 Echelon Parkway Jackson, MS — 440 25,458 48 — 440 25,506 25,946 (3,459 ) 7/25/2012 2009 67 10-12 Celina Avenue Nashua, NH — 3,000 14,052 1,545 — 3,000 15,597 18,597 (2,956 ) 8/31/2009 1979 68 50 West State Street Trenton, NJ — 5,000 38,203 2,620 — 5,000 40,823 45,823 (6,948 ) 12/30/2010 1989 69 138 Delaware Avenue Buffalo, NY — 4,405 18,899 5,226 — 4,485 24,045 28,530 (11,064 ) 3/31/1997 1994 70 Airline Corporate Center Colonie, NY — 790 6,400 32 — 790 6,432 7,222 (881 ) 6/22/2012 2004 71 5000 Corporate Court Holtsville, NY — 6,530 17,711 2,477 — 6,530 20,188 26,718 (3,183 ) 8/31/2011 2000 72 305 East 46th Street New York, NY — 36,800 66,661 4,438 — 36,800 71,099 107,899 (11,212 ) 5/27/2011 1928 73 4600 25th Avenue Salem, OR — 6,510 17,973 4,278 — 6,510 22,251 28,761 (4,066 ) 12/20/2011 1957 74 Synergy Business Park Columbia, SC — 1,439 11,143 4,803 — 1,439 15,946 17,385 (3,718 ) 5/10/2006;9/17/2010 1982; 1985 75 One Memphis Place Memphis, TN — 1,630 5,645 2,508 — 1,630 8,153 9,783 (1,434 ) 9/17/2010 1985 76 701 Clay Road Waco, TX — 2,030 8,708 2,555 — 2,060 11,233 13,293 (4,708 ) 12/23/1997 1997 77 14660, 14672 & 14668 Lee Road Chantilly, VA — 6,966 74,214 294 — 6,966 74,508 81,474 (1,856 ) 12/22/2016 1998; 2002; 2006 78 1408 Stephanie Way Chesapeake, VA — 1,403 2,555 — — 1,403 2,555 3,958 (21 ) 10/2/2017 1998 79 1434 Crossways Chesapeake, VA — 3,617 19,527 276 — 3,617 19,803 23,420 (135 ) 10/2/2017 1998 80 1441 Crossways Boulevard Chesapeake, VA — 2,485 10,189 — — 2,485 10,189 12,674 (73 ) 10/2/2017 1988 81 535 Independence Parkway Chesapeake, VA 3,193 2,465 5,801 — — 2,465 5,801 8,266 (41 ) 10/2/2017 1987 82 Crossways Chesapeake, VA — 6,522 40,267 — — 6,522 40,267 46,789 (318 ) 10/2/2017 1989 83 Crossways II Chesapeake, VA — 1,633 8,035 153 — 1,633 8,188 9,821 (57 ) 10/2/2017 1989 84 Greenbrier Circle Corporate Center Chesapeake, VA — 4,489 15,149 14 — 4,489 15,163 19,652 (126 ) 10/2/2017 1981 Initial Cost to Company Costs Capitalized Subsequent to Acquisition Cost amount carried at Close of Period Property Location Encumbrances (1) Land Buildings Impairments/ Land Buildings Total (2) Accumulated (3) Date(s) Original 85 Greenbrier Technology Center I Chesapeake, VA — 2,514 6,102 — — 2,514 6,102 8,616 (51 ) 10/2/2017 1987 86 Greenbrier Technology Center II Chesapeake, VA — 2,084 5,581 3 — 2,084 5,584 7,668 (47 ) 10/2/2017 1987 87 Greenbrier Towers Chesapeake, VA — 3,437 11,241 27 — 3,437 11,268 14,705 (94 ) 10/2/2017 1985 88 Enterchange at Meadowville Chester, VA — 1,478 9,594 283 — 1,478 9,877 11,355 (1,060 ) 8/28/2013 1999 89 3920 Pender Drive Fairfax, VA 13,620 2,963 12,840 12 — 2,963 12,852 15,815 (1,204 ) 3/21/2014 1981 90 Pender Business Park Fairfax, VA — 2,529 21,386 193 — 2,529 21,579 24,108 (2,312 ) 11/4/2013 2000 91 3201 Jermantown Road Fairfax, VA — 5,991 25,619 329 — 5,991 25,948 31,939 (213 ) 10/2/2017 1984 92 7987 Ashton Avenue Manassas, VA — 1,562 8,253 333 — 1,562 8,586 10,148 (210 ) 1/3/2017 1989 93 Gateway II Norfolk, VA — 1,194 1,563 — — 1,194 1,563 2,757 (13 ) 10/2/2017 1984 94 Norfolk Business Center Norfolk, VA — 2,134 5,430 — — 2,134 5,430 7,564 (45 ) 10/2/2017 1985 95 Norfolk Commerce Park II Norfolk, VA — 3,116 10,709 34 — 3,116 10,743 13,859 (76 ) 10/2/2017 1990 96 1759 & 1760 Business Center Drive Reston, VA — 9,066 78,658 2,413 — 9,066 81,071 90,137 (7,185 ) 5/28/2014 1987 97 1775 Wiehle Avenue Reston, VA — 4,138 26,120 29 — 4,138 26,149 30,287 (163 ) 10/2/2017 2001 98 9960 Mayland Drive Richmond, VA — 2,614 15,930 1,844 — 2,614 17,774 20,388 (1,550 ) 5/20/2014 1994 99 Aquia Commerce Center Stafford, VA — 2,090 7,465 730 — 2,090 8,195 10,285 (1,308 ) 6/22/2011 1988; 1999 100 Atlantic Corporate Park Sterling, VA — 5,752 29,323 — — 5,752 29,323 35,075 (183 ) 10/2/2017 2008 101 Sterling Business Park Lots 8 & 9 Sterling, VA — 9,178 44,324 — — 9,178 44,324 53,502 (277 ) 10/2/2017 2016 102 Sterling Park Business Center Sterling, VA — 18,935 21,191 63 — 18,935 21,254 40,189 (154 ) 10/2/2017 1990 103 65 Bowdoin Street S. Burlington, VT — 700 8,416 120 — 700 8,536 9,236 (1,656 ) 4/9/2010 2009 104 840 North Broadway Everett, WA — 3,360 15,376 1,829 — 3,360 17,205 20,565 (2,504 ) 6/28/2012 1985 105 Stevens Center Richland, WA — 3,970 17,035 2,431 — 4,042 19,394 23,436 (9,176 ) 3/31/1997 1995 106 11050 West Liberty Drive Milwaukee, WI — 945 4,539 103 — 945 4,642 5,587 (763 ) 6/9/2011 2006 107 882 TJ Jackson Drive Falling Waters, WV — 906 3,886 282 — 922 4,152 5,074 (2,110 ) 3/31/1997 1993 108 5353 Yellowstone Road Cheyenne, WY — 1,915 8,217 550 — 1,950 8,732 10,682 (4,438 ) 3/31/1997 1995 $ 183,100 $ 628,698 $ 2,153,005 $ 194,018 $ (9,260 ) $ 627,108 $ 2,348,613 $ 2,975,721 $ (341,848 ) ____________________ (1) Represents mortgage debt, net of the unamortized balance of the fair value adjustments and debt issuance costs totaling $47 . (2) Excludes value of real estate intangibles. Aggregate cost for federal income tax purposes is approximately $3,911,604 . (3) Depreciation on building and improvements is provided for periods ranging up to 40 years and on equipment up to 12 years . Analysis of the carrying amount of real estate properties and accumulated depreciation: Real Estate Properties Accumulated Depreciation Balance at December 31, 2014 $ 1,682,480 $ 219,791 Additions 19,622 38,987 Disposals (2,624 ) (2,624 ) Reclassification of assets held for sale (3,346 ) (275 ) Balance at December 31, 2015 1,696,132 255,879 Additions 194,107 42,404 Disposals (1,479 ) (1,479 ) Balance at December 31, 2016 1,888,760 296,804 Additions 1,100,138 45,315 Loss on asset impairment (9,490 ) — Disposals (3,687 ) (271 ) Balance at December 31, 2017 $ 2,975,721 $ 341,848 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. These consolidated financial statements include the accounts of us and our subsidiaries, all of which are 100% owned directly or indirectly by us. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. |
Real Estate Properties | Real Estate Properties. We record our properties at cost and provide depreciation on real estate investments on a straight line basis over estimated useful lives generally ranging from 7 to 40 years. In some circumstances, we engage independent real estate appraisal firms to provide market information and evaluations which are relevant to our purchase price allocations and determinations of useful lives; however, we are ultimately responsible for the purchase price allocations and determinations of useful lives. We allocate the purchase prices of our properties to land, building and improvements based on determinations of the relative fair values of these assets assuming the properties are vacant. We determine the fair value of each property using methods similar to those used by independent appraisers. We allocate a portion of the purchase price of our properties to above market and below market leases based on the present value (using an interest rate which reflects the risks associated with acquired in place leases at the time each property was acquired by us) of the difference, if any, between (i) the contractual amounts to be paid pursuant to the acquired in place leases and (ii) our estimates of fair market lease rates for the corresponding leases, measured over a period equal to the terms of the respective leases. We allocate a portion of the purchase price to acquired in place leases and tenant relationships based upon market estimates to lease up the property based on the leases in place at the time of purchase. We allocate this aggregate value between acquired in place lease values and tenant relationships based on our evaluation of the specific characteristics of each tenant’s lease. However, we have not separated the value of tenant relationships from the value of acquired in place leases because such value and related amortization expense is immaterial to the accompanying consolidated financial statements. In making these allocations, we consider factors such as estimated carrying costs during the expected lease up periods, including real estate taxes, insurance and other operating income and expenses and costs, such as leasing commissions, legal and other related expenses, to execute similar leases in current market conditions at the time a property was acquired by us. If the value of tenant relationships becomes material in the future, we may separately allocate those amounts and amortize the allocated amounts over the estimated life of the relationships. For transactions that qualify as business combinations, we allocate the excess, if any, of the consideration over the fair value of the assets acquired to goodwill. We amortize capitalized above market lease values (included in acquired in place real estate leases in our consolidated balance sheets) and below market lease values (presented as assumed real estate lease obligations in our consolidated balance sheets) as a reduction or increase, respectively, to rental income over the terms of the associated leases. Such amortization resulted in net decreases to rental income of $2,764 , $1,457 and $1,157 during the years ended December 31, 2017 , 2016 and 2015 , respectively. We amortize the value of acquired in place leases (included in acquired real estate leases in our consolidated balance sheets), exclusive of the value of above market and below market acquired in place leases, over the terms of the associated leases. Such amortization, which is included in depreciation and amortization expense, amounted to $53,410 , $27,546 , and $27,467 during the years ended December 31, 2017 , 2016 and 2015 , respectively. When a lease is terminated prior to its stated expiration, we write off the unamortized amounts relating to that lease. Capitalized above market lease values were $46,096 and $39,261 as of December 31, 2017 and 2016 , respectively, net of accumulated amortization of $27,259 and $22,753 , respectively. Capitalized below market lease values were $25,973 and $20,603 as of December 31, 2017 and 2016 , respectively, net of accumulated amortization of $12,338 and $9,977 , respectively. The value of acquired in place leases, exclusive of the value of above market and below market acquired in place leases, was $472,928 and $203,368 as of December 31, 2017 and 2016 , respectively, net of accumulated amortization of $139,893 and $95,028 , respectively. As of December 31, 2017 , the weighted average amortization periods for capitalized above market leases, lease origination value and capitalized below market lease values were 4.0 years, 5.6 years and 5.7 years, respectively. Future amortization of net intangible lease assets and liabilities, to be recognized over the current terms of the associated leases as of December 31, 2017 are estimated to be $97,114 in 2018 , $70,790 in 2019 , $49,230 in 2020 , $36,321 in 2021 , $27,313 in 2022 and $58,263 thereafter. We regularly evaluate whether events or changes in circumstances have occurred that could indicate an impairment in the value of 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. |
Equity Method Investments | Equity Method Investments. We account for our investments in Affiliates Insurance Company, or AIC, and SIR using the equity method of accounting. Significant influence is present through common representation on the boards of trustees or directors of us, AIC and SIR and our significant ownership interest in SIR. Our Managing Trustee is also the managing trustee of SIR. Our Managing Trustee as the current sole trustee of ABP Trust is the controlling shareholder of The RMR Group Inc., or RMR Inc. He is also a director and officer of RMR Inc. Substantially all of the business of RMR Inc. is conducted by its majority owned subsidiary, The RMR Group LLC, or RMR LLC, which is our manager and the manager of AIC and SIR. Each of our Trustees is a director of AIC and one of our Independent Trustees is also an independent trustee of SIR. See Notes 7, 12 and 13 for a further discussion of our investments in AIC and SIR. In connection with the FPO Transaction, we acquired 50% and 51% interests in two unconsolidated joint ventures which own two properties ( three buildings). The properties owned by these joint ventures are encumbered by an aggregate $82,000 of mortgage indebtedness. We do not control the activities that are most significant to these joint ventures and, as a result, we account for our investment in these joint ventures under the equity method of accounting. See Note 5 for a further discussion of our unconsolidated joint ventures. We periodically evaluate our equity method investments 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 and the extent to which the market value of our investment is below our carrying value, the financial condition of our investees, 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 record an impairment charge to adjust the basis of the investment to its estimated fair value. We recorded a $203,297 loss on impairment of our SIR investment in 2015 . See Note 12 for more information on this impairment. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. |
Restricted Cash | Restricted Cash. Restricted cash 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. |
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. We increased rental income by $5,582 , $2,691 and $3,978 to record revenue on a straight line basis during the years ended December 31, 2017 , 2016 and 2015 , respectively. Rents receivable include $27,267 and $21,686 of straight line rent receivables at December 31, 2017 and 2016 , respectively. Certain of our leases with government tenants provide the tenant the right to terminate its lease if its respective legislature or other funding authority does not appropriate the funding necessary for the government tenant to meet its lease obligations; we have determined the fixed non-cancelable lease term of these leases to be the fully executed term of the lease because we believe the occurrence of termination to be a remote contingency based on both our historical experience and our assessment of the likelihood of lease cancellation on a separate lease basis. |
Deferred Leasing Costs | Deferred Leasing Costs . Deferred leasing costs include brokerage, legal and other fees associated with our entering leases and we amortize those costs, which are included in depreciation and amortization expense, on a straight line basis over the terms of the respective leases. Deferred leasing costs totaled $32,990 and $28,039 at December 31, 2017 and 2016 , respectively, and accumulated amortization of deferred leasing costs totaled $10,013 and $6,960 at December 31, 2017 and 2016 , respectively. Future amortization of deferred leasing costs to be recognized during the current terms of our existing leases as of December 31, 2017 are estimated to be $4,282 in 2018 , $4,091 in 2019 , $3,275 in 2020 , $2,670 in 2021 , $2,186 in 2022 and $6,473 thereafter. |
Available for Sale Securities | Available for Sale Securities. As of December 31, 2017 , we owned 1,214,225 common shares of class A common stock of RMR Inc. Our investment in RMR Inc. is classified as an available for sale security. Available for sale securities are recorded at fair value based on their quoted market price at the end of each reporting period. Unrealized gains and losses on available for sale securities are recorded as a component of cumulative other comprehensive income (loss) in shareholders’ equity. As further described in Note 7 , we initially acquired 1,541,201 shares of class A common stock of RMR Inc. on June 5, 2015 for cash and share consideration of $17,462 . We concluded, for accounting purposes, that the cash and share consideration we paid for our investment in these shares represented a discount to the fair value of these shares. We initially accounted for this investment under the cost method of accounting and recorded this investment at its estimated fair value of $39,833 as of June 5, 2015 using Level 3 inputs, as defined in the fair value hierarchy under U.S. generally accepted accounting principles, or GAAP. As a result, we recorded a liability for the amount by which the estimated fair value of these shares exceeded the price we paid for these shares. This liability is included in accounts payable and other liabilities in our consolidated balance sheets. This liability is being amortized on a straight line basis through December 31, 2035 as an allocated reduction to our business management and property management fee expense. We amortized $1,087 , $1,087 and $618 of this liability during the years ended December 31, 2017 , 2016 and 2015, respectively. These amounts are included in the net business management and property management fee amounts for such periods. As of December 31, 2017 , the remaining unamortized amount of this liability was $19,580 . Future amortization of this liability as of December 31, 2017 is estimated to be $1,087 in 2018, $1,087 in 2019, $1,087 in 2020, $1,087 in 2021, $1,087 in 2022 and $14,145 thereafter. We evaluate our investments in available for sale securities to determine if a decline in the fair value below our carrying value is other than temporary. We consider the severity and the duration of the decline, and our ability and intent to hold the investment until recovery when making this assessment. If a decline in fair value is determined to be other than temporary, an impairment loss equal to the difference between the investment’s carrying value and its fair value is recognized in earnings. |
Deferred Issuance Costs | Debt Issuance Costs . Debt issuance costs include capitalized issuance or assumption costs related to borrowings, which are amortized to interest expense over the terms of the respective loans. Debt issuance costs, net of accumulated amortization, for our revolving credit facility are included in other assets in our consolidated balance sheets. As of December 31, 2017 and 2016 , debt issuance costs for our revolving credit facility were $5,234 and accumulated amortization of debt issuance costs for our revolving credit facility were $3,849 and $2,617 , respectively. Debt issuance costs, net of accumulated amortization, for our unsecured term loans, senior unsecured notes and mortgage notes payable are presented as a direct deduction from the associated debt liability in our consolidated balance sheets. |
Income Taxes | Income Taxes. We have elected to be taxed as a REIT under the United States Internal Revenue Code of 1986, as amended, or the IRC, and, accordingly, we generally will not be subject to federal income taxes provided we distribute our taxable income and meet certain other requirements to qualify as a REIT. We are, however, subject to certain state and local taxes. |
Cumulative Other Comprehensive Income (Loss) | Cumulative Other Comprehensive Income. Cumulative other comprehensive income represents the unrealized gain on the RMR Inc. shares we own and our share of the cumulative comprehensive income of our equity method investees, SIR and AIC. See Notes 7, 12, 13 and 16 for further information regarding these investments. |
Reclassifications | Reclassifications. Certain reclassifications have been made to the prior years’ financial statements to conform to the current year’s presentation. |
Use of Estimates | Use of Estimates. Preparation of these financial statements in conformity with GAAP requires us to make estimates and assumptions that may affect the amounts reported in these consolidated financial statements and related notes. The actual results could differ from these estimates. |
Per Common Share Amounts | Per Common Share Amounts. We calculate basic earnings per common share by dividing net income (loss) available for common shareholders by the weighted average number of our common shares of beneficial ownership, $.01 par value, or our common shares, outstanding during the period. We calculate diluted earnings per share using the more dilutive of the two class method or the treasury stock method. Unvested share awards and other potentially dilutive common shares and the related impact on earnings, are considered when calculating diluted earnings per share. |
Segment Reporting | Segment Reporting. We operate in one business segment: direct ownership of real estate properties. Our equity method investment in SIR has been reclassified as a discontinued operation and is no longer a separate business segment. |
Recent Accounting Pronouncements | New Accounting Pronouncements On January 1, 2017, we adopted the Financial Accounting Standards Board, or FASB, Accounting Standards Update, or ASU, No. 2017-01, Clarifying the Definition of a Business . This update provides additional guidance on evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or of a business. This update defines three requirements for a set of assets and activities (collectively referred to as a “set”) to be considered a business: inputs, processes and outputs. As a result of the implementation of this update, certain property acquisitions, which under previous guidance were accounted for as business combinations, are now accounted for as acquisitions of assets. In an asset acquisition, certain acquisition costs are capitalized as opposed to expensed under previous guidance. In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers , which outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU No. 2014-09 states that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” While ASU No. 2014-09 specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate or equipment. In August 2015, the FASB provided for a one-year deferral of the effective date for ASU No. 2014-09, which is now effective for us beginning January 1, 2018. A substantial portion of our revenue consists of rental income from leasing arrangements, which is specifically excluded from ASU No. 2014-09. We have evaluated ASU No. 2014-09 (and related clarifying guidance issued by the FASB) and the adoption will not have a material impact on the amount or timing of our revenue recognition in our consolidated financial statements with the exception of profit recognition on real estate sales. We currently have recorded a deferred gain on sale of real estate of $712 that under current guidance would be recognized upon repayment of a promissory note we received in connection with the sale but will be recognized in its entirety upon adoption of ASU No. 2014-09. We currently expect to adopt the standard using the modified retrospective approach. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which changes how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. This update is effective for all prospective interim and annual periods beginning after December 15, 2017. We expect to record an adjustment of $45,116 on January 1, 2018 to reclassify historical changes in the fair value of our available for sale equity investments from other comprehensive income to retained earnings. Future changes in the fair value of our equity investments will be recorded through earnings in accordance with ASU No. 2016-01. 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 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 consolidated financial statements. |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Weighted Average Common Share Amounts | The following table provides a reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per share (in thousands): For the Year Ended December 31, 2017 2016 2015 Weighted average common shares for basic earnings per share 84,633 71,050 70,700 Effect of dilutive securities: unvested share awards 20 21 — Weighted average common shares for diluted earnings per share 84,653 71,071 70,700 |
Real Estate Properties (Tables)
Real Estate Properties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Schedule of allocation of purchase price | Our allocation of the purchase price of these acquisitions based on the estimated fair value of the acquired assets and assumed liabilities is presented in the table below. Number of Buildings Other Acquired Acquisition Properties/ Square Purchase and Assumed Acquired Lease Date Location Type Buildings Feet Price (1) Land Improvements Assets Leases Obligations Jan-16 Sacramento, CA (2) Office 1/1 337,811 $ 79,508 $ 4,688 $ 61,995 $ 2,167 $ 11,245 $ (587 ) Jul-16 Atlanta, GA (3) Land — — 1,670 1,670 — — — — Dec-16 Rancho Cordova, CA (2) Office 1/1 82,896 13,943 1,466 8,797 — 3,680 — Dec-16 Chantilly, VA (2) Office 1/3 409,478 104,183 6,966 74,214 — 23,003 — 3/5 830,185 $ 199,304 $ 14,790 $ 145,006 $ 2,167 $ 37,928 $ (587 ) (1) Excludes acquisition costs. (2) Accounted for as a business combination. (3) On July 6, 2016, we acquired a land parcel adjacent to on our existing properties for $1,623 . We accounted for this transaction as an asset acquisition and capitalized acquisition related costs of $47 . Our allocation of the purchase price of this acquisition is based on the relative estimated fair value of the acquired assets and assumed liabilities is presented in the table below. Number of Buildings Other Acquisition Properties/ Square Purchase and Assumed Date Location Type Buildings Feet Price Land Improvements Assets Jan-17 Manassas, VA Office 1/1 69,374 $ 12,657 $ 1,562 $ 8,253 $ 2,842 Total Purchase Price: Cash consideration $ 1,175,140 Acquisition related costs 9,575 Total cash consideration 1,184,715 Preferred units of limited partnership issued (1) 20,221 Acquired net working capital (1,596 ) Assumed mortgage notes 167,548 Non-cash portion of purchase price 186,173 Gross purchase price $ 1,370,888 Purchase Price Allocation: Land $ 360,909 Buildings and improvements 681,340 Acquired real estate leases (2) 283,498 Investment in unconsolidated joint ventures 51,305 Cash 11,191 Restricted cash 1,018 Rents receivable 2,672 Other assets 3,640 Total assets 1,426,694 Mortgage notes payable (3) (167,936 ) Assumed real estate lease obligations (2) (5,776 ) Accounts payable and accrued expenses (10,640 ) Rents collected in advance (1,436 ) Security deposits (4,849 ) Net assets acquired 1,204,936 Assumed working capital (1,596 ) Assumed principal balance of debt 167,548 Gross purchase price $ 1,370,888 (1) Pursuant to the terms of the FPO Transaction, each unit of limited partnership interest in FPO's operating partnership that was not liquidated on the closing date was exchanged on a one-for-one basis for 5.5% Series A Cumulative Preferred Units of the surviving subsidiary. As of December 31, 2017 , there are 1,814 of 5.5% Series A Cumulative Preferred Units outstanding. Beginning on October of each year and ending January 15 of the following year, with the first such period beginning October 1, 2019, holders have the right to redeem their 5.5% Series A Cumulative Preferred Units for cash equal to $11.15 per unit. Beginning on April 1 of each year and ending June 30 of that year, with the first such period beginning April 1, 2018, we have the right to redeem all or any portion of the outstanding 5.5% Series A Cumulative Preferred Units for cash at $11.15 per unit. As of December 31, 2017 , the carrying value of these Series A Cumulative Preferred Units was $20,496 and is recorded as temporary equity on our consolidated balance sheet at December 31, 2017. (2) As of the date acquired, the weighted average amortization periods for capitalized above market lease values, lease origination value and capitalized below market lease values were 3.2 years , 3.1 years and 3.8 years , respectively. (3) Includes fair value adjustments totaling $388 on $167,936 principal amount of mortgage notes we assumed in connection with the FPO Transaction. |
Schedule of Joint Ventures | As of December 31, 2017, our investment in unconsolidated joint ventures consisted of the following: Joint Venture GOV Ownership GOV Carrying Value of Investment at December 31, 2017 Property Type Number of Buildings Location Square Feet Prosperity Metro Plaza 51% $ 27,888 Office 2 Fairfax, VA 328,456 1750 H Street, NW 50% 22,314 Office 1 Washington, DC 115,411 Total $ 50,202 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 December 31, 2017 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. |
Schedule of Pro Forma Information | The following table presents our pro forma results of operations for the years ended December 31, 2017 and 2016 as if the FPO Transaction and related financing activities had occurred on January 1, 2016. The historical FPO results of operations included in this pro forma financial information have been adjusted to remove the results of operations of properties and joint venture interests FPO sold from January 1, 2016 to October 2, 2017, the closing date of the FPO Transaction. The effect of these adjustments was to decrease pro forma rental income $804 and $17,810 for the years ended December 31, 2017 and 2016 , respectively, and to decrease net income (loss) $47,019 and $5,403 for the years ended December 31, 2017 and 2016 , respectively. 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. Year Ended December 31, 2017 2016 Rental income $ 437,101 $ 412,245 Net income (loss) (25,898 ) 11,630 Net income (loss) per share $ (0.26 ) $ 0.12 |
Summarized balance sheet and income statement information for properties classified as discontinued operations | Summarized balance sheet and income statement information for this property is as follows: Balance Sheets As of December 31, 2016 Real estate properties, net $ 12,260 Other assets 281 Assets of discontinued operations $ 12,541 Other liabilities $ 45 Liabilities of discontinued operations $ 45 Statements of Operations Year Ended December 31, 2017 2016 2015 Rental income $ 17 $ 68 $ 114 Real estate taxes (88 ) (97 ) (92 ) Utility expenses (97 ) (146 ) (161 ) Other operating expenses (202 ) (300 ) (272 ) General and administrative (76 ) (114 ) (114 ) Increase in carrying value of property included in discontinued operations 619 — — Income (loss) from discontinued operations $ 173 $ (589 ) $ (525 ) Below are the components of our income from discontinued operations: Year Ended December 31, 2017 2016 2015 Net gain (loss) on issuance of shares by Select Income REIT $ 72 $ 86 $ (42,145 ) Loss on impairment of Select Income REIT investment — — (203,297 ) Equity in earnings of Select Income REIT 21,584 35,381 18,620 Income (loss) from property discontinued operations 173 (589 ) (525 ) Income (loss) from discontinued operations $ 21,829 $ 34,878 $ (227,347 ) |
Schedule of future minimum lease payments related properties (excluding real estate tax and other expense reimbursements) | Our future minimum lease payments related to our consolidated properties and estimated real estate tax and other expense reimbursements scheduled to be received during the current terms of the existing leases as of December 31, 2017 are as follows: 2018 $ 367,883 2019 330,792 2020 258,847 2021 220,758 2022 180,558 Thereafter 564,621 $ 1,923,459 |
Schedule of minimum rental payments | Future minimum rental payments due under the lease, net of subleased revenue, as of December 31, 2017 are summarized as follows: 2018 $ 1,543 2019 1,584 2020 1,627 2021 139 $ 4,893 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of required principal payments | The required principal payments due during the next five years and thereafter under all our outstanding consolidated debt as of December 31, 2017 are as follows: Year Principal payment 2018 $ 3,672 2019 931,541 2020 338,433 2021 14,420 2022 575,518 Thereafter 399,563 $ 2,263,147 (1) (1) Total consolidated debt outstanding as of December 31, 2017 , net of unamortized premiums, discounts and certain issuance costs totaling $18,055 was $2,245,092 . |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured on a 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 December 31, 2017 , categorized by the level of inputs, as defined in the fair value hierarchy under GAAP, used in the valuation of each asset: Fair Value at Reporting Date Using Quoted Prices in Significant Estimated Active Markets for Significant Other Unobservable Fair Identical Assets Observable Inputs Inputs Description Value (Level 1) (Level 2) (Level 3) Recurring Fair Value Measurements Assets: Investment in RMR Inc. (1) $ 72,005 $ 72,005 $ — $ — Non-Recurring Fair Value Measurements Assets: One property (2) $ 19,667 $ — $ 19,667 $ — (1) Our 1,214,225 shares of class A common stock of RMR Inc., which are included in other assets in our 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 December 31, 2017 . The net unrealized gain of $45,116 for these shares as of December 31, 2017 is included in cumulative other comprehensive income (loss) in our consolidated balance sheets. (2) We estimated the fair value of a property we agreed to sell located in Minneapolis, MN at December 31, 2017 based upon the selling price agreed to with a third party (Level 2 inputs as defined in the fair value hierarchy under GAAP). See Note 5 for further details. |
Schedule of fair value and carrying value of financial instruments | At December 31, 2017 and December 31, 2016 , the fair values of our financial instruments approximated their carrying values in our consolidated financial statements due to their short term nature or variable interest rates, except as follows: As of December 31, 2017 As of December 31, 2016 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Senior unsecured notes, 3.750% interest rate, due in 2019 $ 348,096 $ 354,993 $ 346,952 $ 354,078 Senior unsecured notes, 5.875% interest rate, due in 2046 300,232 320,416 299,892 292,268 Senior unsecured notes, 4.000% interest rate, due in 2022 295,812 302,655 — — Mortgage note payable, 4.050% interest rate, due in 2030 (2)(3) 64,293 65,198 — — Mortgage note payable, 5.720% interest rate, due in 2020 (2)(3) 36,085 36,332 — — Mortgage note payable, 4.220% interest rate, due in 2022 (2)(3) 27,906 28,432 — — Mortgage note payable, 4.800% interest rate, due in 2023 (2)(3) 25,501 25,904 — — Mortgage note payable, 5.877% interest rate, due in 2021 (2) 13,620 14,565 13,841 14,492 Mortgage note payable, 7.000% interest rate, due in 2019 (2) 8,391 8,555 8,778 9,188 Mortgage note payable, 8.150% interest rate, due in 2021 (2) 4,111 4,340 5,218 5,575 Mortgage note payable, 4.260% interest rate, due in 2020 (2)(3) 3,193 3,216 — — $ 1,127,240 $ 1,164,606 $ 674,681 $ 675,601 (1) Carrying amount includes certain unamortized debt issuance costs and unamortized premiums and discounts. (2) We assumed these mortgages in connection with our acquisitions of the encumbered properties. The stated interest rates for these mortgage debts are the contractually stated rates. We recorded the assumed mortgages at estimated fair value on the date of acquisition and we are amortizing the fair value premiums, if any, to interest expense over the respective terms of the mortgages to reduce interest expense to the estimated market interest rates as of the date of acquisition. (3) In connection with the FPO Transaction, we assumed five fixed rate mortgage notes with an aggregate principal balance of $167,548 . We recorded these mortgage notes at their estimated fair value aggregating $167,936 on the date of acquisition. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of shares granted and vested under the terms of the entity's 2009 Plan | A summary of shares granted, forfeited, vested and unvested under the terms of the 2009 Plan for the years ended December 31, 2017 , 2016 and 2015 , is as follows: 2017 2016 2015 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Unvested shares, beginning of year 98,970 $20.59 96,725 $20.11 90,338 $23.40 Shares granted 75,350 19.36 65,900 21.66 65,600 16.59 Shared forfeited — — — — (1,020 ) 23.41 Shares vested (70,070 ) 20.80 (63,655 ) 20.97 (58,193 ) 21.20 Unvested shares, end of year 104,250 $19.56 98,970 $20.59 96,725 $20.11 |
Schedule of changes in each component of cumulative other comprehensive income (loss) | The following table presents changes in the amounts we recognized in cumulative other comprehensive income (loss) by component for the years ended December 31, 2017 , 2016 and 2015 : Unrealized Gain (Loss) on Investment in Available for Sale Securities Equity in Unrealized Gains (Losses) of Investees Total Balance at December 31, 2014 $ — $ 37 $ 37 Other comprehensive loss before reclassifications (9,391 ) (5,592 ) (14,983 ) Amounts reclassified from cumulative other comprehensive loss to net income (1) — 79 79 Net current period other comprehensive loss (9,391 ) (5,513 ) (14,904 ) Balance at December 31, 2015 (9,391 ) (5,476 ) (14,867 ) Other comprehensive income before reclassifications 30,465 11,254 41,719 Amounts reclassified from cumulative other comprehensive income to net income (1) — 105 105 Net current period other comprehensive income 30,465 11,359 41,824 Balance at December 31, 2016 21,074 5,883 26,957 Other comprehensive income before reclassifications 24,042 9,462 33,504 Amounts reclassified from cumulative other comprehensive income to net income (loss) (1) — (34 ) (34 ) Net current period other comprehensive income 24,042 9,428 33,470 Balance at December 31, 2017 $ 45,116 $ 15,311 $ 60,427 (1) Amounts reclassified from cumulative other comprehensive income (loss) is included in equity in earnings of investees in our consolidated statements of comprehensive income (loss). |
Equity Investment in Select I_2
Equity Investment in Select Income REIT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SIR | |
Summarized Financial Data of Select Income Realty (SIR) | Consolidated Balance Sheets As of December 31, 2017 2016 Real estate properties, net $ 3,905,616 $ 3,899,792 Properties held for sale 5,829 — Acquired real estate leases, net 477,577 506,298 Cash and cash equivalents 658,719 22,127 Rents receivable, net 127,672 124,089 Other assets, net 127,617 87,376 Total assets $ 5,303,030 $ 4,639,682 Unsecured revolving credit facility $ — $ 327,000 ILPT revolving credit facility 750,000 — Unsecured term loan, net 348,870 348,373 Senior unsecured notes, net 1,777,425 1,430,300 Mortgage notes payable, net 210,785 245,643 Assumed real estate lease obligations, net 68,783 77,622 Other liabilities 155,348 136,782 Shareholders' equity 1,991,819 2,073,962 Total liabilities and shareholders' equity $ 5,303,030 $ 4,639,682 Consolidated Statements of Income Year Ended December 31, 2017 2016 2015 Rental income $ 392,285 $ 387,015 $ 364,139 Tenant reimbursements and other income 75,818 74,992 64,226 Total revenues 468,103 462,007 428,365 Real estate taxes 44,131 42,879 37,460 Other operating expenses 55,567 52,957 41,953 Depreciation and amortization 137,672 133,762 122,906 Acquisition and transaction related costs 1,075 306 21,987 General and administrative 54,818 28,602 25,859 Write-off of straight line rents receivable, net 12,517 5,484 — Loss on asset impairment 4,047 — — Loss on impairment of real estate assets 229 — — Total expenses 310,056 263,990 250,165 Operating income 158,047 198,017 178,200 Dividend income 1,587 1,268 1,666 Interest expense (92,870 ) (82,620 ) (73,885 ) Loss on early extinguishment of debt — — (6,845 ) Loss on distribution to common shareholders of The RMR Group Inc. common stock — — (23,717 ) Income before income tax expense and equity in earnings of an investee 66,764 116,665 75,419 Income tax expense (466 ) (448 ) (515 ) Equity in earnings of an investee 608 137 20 Net income 66,906 116,354 74,924 Net income allocated to noncontrolling interest — (33 ) (176 ) Net income attributed to SIR $ 66,906 $ 116,321 $ 74,748 Weighted average common shares outstanding (basic) 89,351 89,304 86,699 Weighted average common shares outstanding (diluted) 89,370 89,324 $ 86,708 Net income attributed to SIR per common share (basic and diluted) $ 0.75 $ 1.30 $ 0.86 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations | Summarized balance sheet and income statement information for this property is as follows: Balance Sheets As of December 31, 2016 Real estate properties, net $ 12,260 Other assets 281 Assets of discontinued operations $ 12,541 Other liabilities $ 45 Liabilities of discontinued operations $ 45 Statements of Operations Year Ended December 31, 2017 2016 2015 Rental income $ 17 $ 68 $ 114 Real estate taxes (88 ) (97 ) (92 ) Utility expenses (97 ) (146 ) (161 ) Other operating expenses (202 ) (300 ) (272 ) General and administrative (76 ) (114 ) (114 ) Increase in carrying value of property included in discontinued operations 619 — — Income (loss) from discontinued operations $ 173 $ (589 ) $ (525 ) Below are the components of our income from discontinued operations: Year Ended December 31, 2017 2016 2015 Net gain (loss) on issuance of shares by Select Income REIT $ 72 $ 86 $ (42,145 ) Loss on impairment of Select Income REIT investment — — (203,297 ) Equity in earnings of Select Income REIT 21,584 35,381 18,620 Income (loss) from property discontinued operations 173 (589 ) (525 ) Income (loss) from discontinued operations $ 21,829 $ 34,878 $ (227,347 ) |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following is a summary of our unaudited quarterly results of operations for 2017 and 2016 . 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Rental income $ 69,296 $ 69,887 $ 70,179 $ 107,170 Net income (loss) available for common shareholders per common share $ 7,415 $ 11,677 $ 10,989 $ (18,266 ) Net income (loss) available for common shareholders per common share (basic and diluted) $ 0.10 $ 0.16 $ 0.11 $ (0.18 ) Common distributions declared $ 0.43 $ 0.43 $ 0.43 $ 0.43 2016 First Second Third Fourth Rental income $ 63,611 $ 64,061 $ 64,478 $ 66,030 Net income available for common shareholders $ 17,387 $ 16,813 $ 11,578 $ 12,065 Net income available for common shareholders per common share (basic and diluted) $ 0.24 $ 0.24 $ 0.16 $ 0.17 Common distributions declared $ 0.43 $ 0.43 $ 0.43 $ 0.43 |
Organization (Details)
Organization (Details) | 12 Months Ended | ||
Dec. 31, 2017ft²buildingstateproperty$ / sharesshares | Oct. 02, 2017ft² | Dec. 31, 2016ft²$ / shares | |
Real Estate Properties [Line Items] | |||
Rentable area of properties (in square feet) | ft² | 830,185 | ||
Number of properties, noncontrolling interest | property | 2 | ||
Number of buildings, noncontrolling interest | building | 3 | ||
Common shares of beneficial interest, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Continuing operations | |||
Real Estate Properties [Line Items] | |||
Number of properties owned | property | 108 | ||
Number of buildings | building | 167 | ||
Number of states in which owned properties located | state | 30 | ||
Rentable area of properties (in square feet) | ft² | 17,500,000 | ||
SIR | |||
Real Estate Properties [Line Items] | |||
SIR Common shares of beneficial interest acquired pursuant to stock purchase agreement | shares | 24,918,421 | ||
Common shares of beneficial interest, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Percentage of ownership interest | 27.80% | ||
First Potomac Realty Trust | |||
Real Estate Properties [Line Items] | |||
Rentable area of properties (in square feet) | ft² | 400,000 | 6,028,072 | |
Number of properties, noncontrolling interest | property | 2 | ||
Number of buildings, noncontrolling interest | building | 3 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | Oct. 02, 2017USD ($)buildingjoint_ventureproperty | Jun. 05, 2015USD ($)shares | Dec. 31, 2017USD ($)segmentbuildingjoint_ventureproperty$ / sharesshares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($) |
Real Estate Properties | |||||
Percentage of interest in subsidiaries | 100.00% | ||||
Loss on impairment of real estate | $ 9,490 | $ 0 | $ 0 | ||
Net decreases to rental income from amortization of capitalized above market and below market leases | 2,764 | 1,457 | 1,157 | ||
Amortization of the value of leases | $ 56,174 | 29,003 | 28,624 | ||
Below market, acquired lease amortization period | 3 years 9 months 18 days | ||||
Projected future amortization of net intangible lease assets and liabilities, excluding those classified as discontinued operations | |||||
Number of joint ventures | joint_venture | 2 | ||||
Available-for-Sale Securities | |||||
Common shares owned in RMR Inc. | shares | 1,214,225 | ||||
Deferred Financing Fees | |||||
Deferred financing fees, net | $ 15,750 | $ 14,725 | |||
Future amortization of deferred financing fees | |||||
2,018 | 3,469 | ||||
2,019 | 2,217 | ||||
2,020 | 1,357 | ||||
2,021 | 1,217 | ||||
2,022 | 826 | ||||
Thereafter | $ 8,049 | ||||
Common shares of beneficial interest, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Segment Reporting | |||||
Number of business segments | segment | 1 | ||||
Minimum | Buildings and improvements | |||||
Real Estate Properties | |||||
Estimated useful lives | 7 years | ||||
Maximum | Buildings and improvements | |||||
Real Estate Properties | |||||
Estimated useful lives | 40 years | ||||
Weighted Average | |||||
Real Estate Properties | |||||
Below market, acquired lease amortization period | 5 years 8 months 12 days | ||||
Original value lease | |||||
Real Estate Properties | |||||
Amortization of the value of leases | $ 53,410 | $ 27,546 | 27,467 | ||
Original value lease | Weighted Average | |||||
Real Estate Properties | |||||
Acquired lease amortization period | 5 years 7 months 6 days | ||||
Above market lease | Weighted Average | |||||
Real Estate Properties | |||||
Acquired lease amortization period | 4 years | ||||
Continuing operations | |||||
Real Estate Properties | |||||
Below market, capitalized value of leases | $ 25,973 | 20,603 | |||
Below market, accumulated amortization of capitalized lease values | 12,338 | 9,977 | |||
Projected future amortization of net intangible lease assets and liabilities, excluding those classified as discontinued operations | |||||
2,018 | 97,114 | ||||
2,019 | 70,790 | ||||
2,020 | 49,230 | ||||
2,021 | 36,321 | ||||
2,022 | 27,313 | ||||
Thereafter | $ 58,263 | ||||
Number of properties owned | property | 108 | ||||
Number of buildings | building | 167 | ||||
Revenue Recognition | |||||
Increase in rental income to record revenue on straight line basis | $ 5,582 | 2,691 | 3,978 | ||
Straight line rent receivables | 27,267 | 21,686 | |||
Deferred Leasing Costs | |||||
Deferred leasing costs, gross | 32,990 | 28,039 | |||
Accumulated amortization of deferred leasing costs | 10,013 | 6,960 | |||
Future amortization of deferred leasing costs, excluding those classified as discontinued operations | |||||
2,018 | 4,282 | ||||
2,019 | 4,091 | ||||
2,020 | 3,275 | ||||
2,021 | 2,670 | ||||
2,022 | 2,186 | ||||
Thereafter | 6,473 | ||||
Continuing operations | Original value lease | |||||
Real Estate Properties | |||||
Capitalized value of leases | 472,928 | 203,368 | |||
Accumulated amortization of capitalized lease values | 139,893 | 95,028 | |||
Continuing operations | Above market lease | |||||
Real Estate Properties | |||||
Capitalized value of leases | 46,096 | 39,261 | |||
Accumulated amortization of capitalized lease values | 27,259 | 22,753 | |||
Unsecured revolving credit facility | |||||
Deferred Financing Fees | |||||
Deferred financing fees, gross | 5,234 | 5,234 | |||
Accumulated amortization of deferred financing fees | 3,849 | 2,617 | |||
First Potomac Realty Trust | |||||
Projected future amortization of net intangible lease assets and liabilities, excluding those classified as discontinued operations | |||||
Number of joint ventures | joint_venture | 2 | ||||
Mortgage notes payable | $ 167,936 | ||||
Available-for-Sale Securities | |||||
Purchase price | $ 1,370,888 | ||||
RMR Inc | |||||
Available-for-Sale Securities | |||||
Purchase price | $ 17,462 | ||||
Initial other liabilities | 19,580 | ||||
Class A common stock | RMR Inc | |||||
Available-for-Sale Securities | |||||
Shares acquired (in shares) | shares | 1,541,201 | ||||
Cost method investment | $ 39,833 | ||||
RMR Inc | |||||
Available-for-Sale Securities | |||||
Recognized amortization of the liability | 1,087 | $ 1,087 | 618 | ||
Amortization of liability, 2018 | 1,087 | ||||
Amortization of liability, 2019 | 1,087 | ||||
Amortization of liability, 2020 | 1,087 | ||||
Amortization of liability, 2021 | 1,087 | ||||
Amortization of liability, 2022 | 1,087 | ||||
Amortization of liability, thereafter | $ 14,145 | ||||
SIR | |||||
Real Estate Properties | |||||
Loss on impairment of real estate | $ 203,297 | ||||
Projected future amortization of net intangible lease assets and liabilities, excluding those classified as discontinued operations | |||||
Percentage of ownership interest | 27.80% | ||||
First Potomac Realty Trust | |||||
Projected future amortization of net intangible lease assets and liabilities, excluding those classified as discontinued operations | |||||
Number of joint ventures | joint_venture | 2 | ||||
Number of properties owned | property | 2 | ||||
Number of buildings | building | 3 | ||||
First Potomac Realty Trust | Joint Venture Property 1 | |||||
Projected future amortization of net intangible lease assets and liabilities, excluding those classified as discontinued operations | |||||
Percentage of ownership interest | 50.00% | ||||
First Potomac Realty Trust | Joint Venture Property 2 | |||||
Projected future amortization of net intangible lease assets and liabilities, excluding those classified as discontinued operations | |||||
Percentage of ownership interest | 51.00% | ||||
Joint Venture Mortgage | Mortgages | First Potomac Realty Trust | |||||
Projected future amortization of net intangible lease assets and liabilities, excluding those classified as discontinued operations | |||||
Mortgage notes payable | $ 82,000 |
Weighted Average Common Share A
Weighted Average Common Share Amounts (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share, Basic and Diluted [Abstract] | |||
Weighted average common shares for basic earnings per share (in shares) | 84,633 | 71,050 | 70,700 |
Effect of dilutive securities: unvested share awards (in shares) | 20 | 21 | 0 |
Weighted average common shares for diluted earnings per share (in shares) | 84,653 | 71,071 | 70,700 |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred gain on sale of real estate | $ 712 | ||
Unrealized gain on investment in available for sale securities | 24,042 | $ 30,465 | $ (9,391) |
ASU 2016-01 | Cumulative Other Comprehensive Income (Loss) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Unrealized gain on investment in available for sale securities | $ 45,116 |
Real Estate Properties - Additi
Real Estate Properties - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)ft²leasebuildingjoint_ventureproperty | Dec. 31, 2016USD ($) | |
Real Estate Properties [Line Items] | ||
Number of joint ventures | joint_venture | 2 | |
Number of properties, noncontrolling interest | property | 2 | |
Number of buildings, noncontrolling interest | building | 3 | |
Carry value of properties | $ 2,975,721 | $ 1,888,760 |
Number of leases entered | lease | 75 | |
Rentable square feet (in sqft) | ft² | 1,604,783 | |
Weighted average lease term | 7 years 7 months 6 days | |
Expenditures committed on leases | $ 18,249 | |
Committed but unspent tenant related obligations estimated | 31,310 | |
Interest capitalized | $ 511 | |
Continuing operations | ||
Real Estate Properties [Line Items] | ||
Number of properties owned | property | 108 | |
Number of buildings | building | 167 | |
Carry value of properties | $ 2,975,721 |
Real Estate Properties - FPO Tr
Real Estate Properties - FPO Transaction (Details) $ / shares in Units, $ in Thousands | Oct. 02, 2017USD ($)ft²buildingjoint_ventureproperty | Dec. 31, 2017USD ($)ft²joint_ventureproperty$ / sharesshares | Dec. 31, 2016USD ($)ft²buildingproperty |
Business Acquisition [Line Items] | |||
Number of properties acquired | property | 3 | ||
Number of buildings acquired | building | 5 | ||
Rentable area of properties (in square feet) | ft² | 830,185 | ||
Number of joint ventures | joint_venture | 2 | ||
Number of properties collateralized | property | 8 | ||
Preferred units of limited partnership | $ 20,496 | $ 0 | |
Below market, acquired lease amortization period | 3 years 9 months 18 days | ||
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 | 400,000 | |
Number of joint ventures | joint_venture | 2 | ||
Purchase price | $ 1,370,888 | ||
Cash consideration | 1,175,140 | ||
Repayment of debt assumed | 483,000 | ||
Mortgage notes payable | $ 167,936 | ||
Number of properties collateralized | property | 5 | ||
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% | ||
Mortgages | FPO Mortgage | First Potomac Realty Trust | |||
Business Acquisition [Line Items] | |||
Mortgage notes payable | $ 167,548 | ||
Fair value adjustment | 388 | ||
Fair value of debt | 167,936 | ||
Mortgages | Joint Venture Mortgage | First Potomac Realty Trust | |||
Business Acquisition [Line Items] | |||
Mortgage notes payable | $ 82,000 | ||
Number of properties collateralized | property | 2 | ||
FPO Shareholders | First Potomac Realty Trust | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 651,696 | ||
Above market lease | |||
Business Acquisition [Line Items] | |||
Weighted average amortization period, assets acquired | 3 years 2 months 12 days | ||
Lease origination value | |||
Business Acquisition [Line Items] | |||
Weighted average amortization period, assets acquired | 3 years 1 month 6 days | ||
Series A Cumulative Preferred Stock | |||
Business Acquisition [Line Items] | |||
Preferred stock percentage | 5.50% | ||
Preferred stock outstanding (in shares) | shares | 1,814 | ||
Redemption price (in dollars per share) | $ / shares | $ 11.15 |
Real Estate Properties - FPO As
Real Estate Properties - FPO Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 02, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Total Purchase Price: | ||||
Acquisition related costs | $ 0 | $ (1,191) | $ (811) | |
Acquired net working capital | (1,596) | 0 | 0 | |
Purchase Price Allocation: | ||||
Land | 14,790 | |||
Acquired net working capital | $ (1,596) | $ 0 | $ 0 | |
First Potomac Realty Trust | ||||
Total Purchase Price: | ||||
Cash consideration | $ 1,175,140 | |||
Acquisition related costs | 9,575 | |||
Total cash consideration | 1,184,715 | |||
Preferred units of limited partnership issued | 20,221 | |||
Acquired net working capital | (1,596) | |||
Assumed mortgage notes | 167,548 | |||
Non-cash portion of purchase price | 186,173 | |||
Gross purchase price | 1,370,888 | |||
Purchase Price Allocation: | ||||
Land | 360,909 | |||
Buildings and improvements | 681,340 | |||
Acquired real estate leases | 283,498 | |||
Investment in unconsolidated joint ventures | 51,305 | |||
Cash | 11,191 | |||
Restricted cash | 1,018 | |||
Rents receivable | 2,672 | |||
Other assets | 3,640 | |||
Total assets | 1,426,694 | |||
Mortgage notes payable | (167,936) | |||
Assumed real estate lease obligations | (5,776) | |||
Accounts payable and accrued expenses | (10,640) | |||
Rents collected in advance | (1,436) | |||
Security deposits | (4,849) | |||
Net assets acquired | 1,204,936 | |||
Acquired net working capital | (1,596) | |||
Assumed mortgage notes | 167,548 | |||
Gross purchase price | $ 1,370,888 |
Real Estate Properties - Pro Fo
Real Estate Properties - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Rental income | $ 437,101 | $ 412,245 | |
Net income (loss) | $ (25,898) | $ 11,630 | |
Net income (loss) per share (in dollars per share) | $ (0.26) | $ 0.12 | |
Revenue since acquisition | $ 36,722 | ||
Operating income since acquisition | 3,230 | ||
Equity in earnings (losses) of investees | (13) | $ 137 | $ 20 |
Acquisition-related costs | |||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Decrease revenues | 804 | 17,810 | |
Decrease (increase) net income (loss) | 47,019 | $ 5,403 | |
Operating Segments | Investment in Real Estate | |||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Equity in earnings (losses) of investees | $ (621) |
Real Estate Properties - Schedu
Real Estate Properties - Schedule of Joint Ventures (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)ft²buildingjoint_ventureproperty | Oct. 02, 2017 | Dec. 31, 2016ft² | |
Real Estate [Line Items] | |||
Number of joint ventures | joint_venture | 2 | ||
Square Feet (in square feet) | ft² | 830,185 | ||
Unconsolidated Joint Ventures | |||
Real Estate [Line Items] | |||
Number of properties owned | property | 2 | ||
Investment at carrying value | $ 50,202 | ||
Number of Buildings | building | 3 | ||
Square Feet (in square feet) | ft² | 443,867 | ||
Interest rate (as a percent) | 3.93% | ||
Principal Balance | $ 82,000 | ||
Unamortized basis difference | 8,933 | ||
Unconsolidated Joint Ventures | Prosperity Metro Plaza | |||
Real Estate [Line Items] | |||
GOV Ownership | 51.00% | ||
Investment at carrying value | $ 27,888 | ||
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 | $ 22,314 | ||
Number of Buildings | building | 1 | ||
Square Feet (in square feet) | ft² | 115,411 | ||
Interest rate (as a percent) | 3.69% | ||
Principal Balance | $ 32,000 |
Real Estate Properties - Acquis
Real Estate Properties - Acquisition Activities (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($) | Jan. 31, 2017USD ($)ft² | Dec. 31, 2017USD ($)ft²buildingproperty | Dec. 31, 2016USD ($)ft²buildingproperty | |
Real Estate Properties [Line Items] | ||||
Number of properties acquired | property | 3 | |||
Number of buildings acquired | building | 5 | |||
Rentable area of properties (in square feet) | ft² | 830,185 | |||
Purchase price | $ 199,304 | |||
Land | 14,790 | |||
Buildings and Improvements | 145,006 | |||
Other Assumed Assets | $ 2,167 | |||
Manassas, VA | ||||
Real Estate Properties [Line Items] | ||||
Number of properties acquired | property | 1 | |||
Rentable area of properties (in square feet) | ft² | 69,374 | 69,374 | ||
Percentage of property lease | 100.00% | |||
Capitalized transaction costs | $ 37 | |||
Purchase price | $ 12,657 | $ 12,657 | ||
Land | 1,562 | |||
Buildings and Improvements | 8,253 | |||
Other Assumed Assets | $ 2,842 | |||
Office Building | ||||
Real Estate Properties [Line Items] | ||||
Number of buildings acquired | building | 5 | |||
Office Building | Manassas, VA | ||||
Real Estate Properties [Line Items] | ||||
Number of buildings acquired | building | 1 | |||
Transferable Development Rights | Washington, D.C. | ||||
Real Estate Properties [Line Items] | ||||
Payments to acquire transferable development rights | $ 2,030 |
Real Estate Properties - 2016 A
Real Estate Properties - 2016 Acquisition Activities (Details) $ in Thousands | Jul. 06, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)ft²buildingproperty | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||
Number of properties acquired | property | 3 | |||
Number of buildings acquired | building | 5 | |||
Rentable area of properties (in square feet) | ft² | 830,185 | |||
Purchase price | $ 199,304 | |||
Land | 14,790 | |||
Buildings and Improvements | 145,006 | |||
Other Assumed Assets | 2,167 | |||
Acquired Leases | 37,928 | |||
Acquired Lease Obligations | 587 | |||
Acquisition related costs | $ 0 | $ 1,191 | $ 811 | |
Office Building | ||||
Business Acquisition [Line Items] | ||||
Number of buildings acquired | building | 5 | |||
Sacramento, CA | ||||
Business Acquisition [Line Items] | ||||
Number of properties acquired | property | 1 | |||
Number of buildings acquired | building | 1 | |||
Rentable area of properties (in square feet) | ft² | 337,811 | |||
Purchase price | $ 79,508 | |||
Land | 4,688 | |||
Buildings and Improvements | 61,995 | |||
Other Assumed Assets | 2,167 | |||
Acquired Leases | 11,245 | |||
Acquired Lease Obligations | 587 | |||
Atlanta, GA | ||||
Business Acquisition [Line Items] | ||||
Purchase price | 1,670 | |||
Land | $ 1,670 | |||
Atlanta, GA | Land | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 1,623 | |||
Acquisition related costs | $ 47 | |||
Rancho Cordova, CA | ||||
Business Acquisition [Line Items] | ||||
Number of properties acquired | property | 1 | |||
Number of buildings acquired | building | 1 | |||
Rentable area of properties (in square feet) | ft² | 82,896 | |||
Purchase price | $ 13,943 | |||
Land | 1,466 | |||
Buildings and Improvements | 8,797 | |||
Acquired Leases | $ 3,680 | |||
Chantilly, VA | ||||
Business Acquisition [Line Items] | ||||
Number of properties acquired | property | 1 | |||
Number of buildings acquired | building | 3 | |||
Rentable area of properties (in square feet) | ft² | 409,478 | |||
Purchase price | $ 104,183 | |||
Land | 6,966 | |||
Buildings and Improvements | 74,214 | |||
Acquired Leases | 23,003 | |||
Acquired Lease Obligations | $ 0 |
Real Estate Properties - 2018_2
Real Estate Properties - 2018/2017 Disposition Activities (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Feb. 28, 2018USD ($)ft²buildingproperty | Jan. 31, 2018USD ($)ft²building | Oct. 31, 2017USD ($)ft²buildingproperty | Aug. 31, 2017USD ($)ft²buildingproperty | Dec. 31, 2017USD ($)buildingproperty | Dec. 31, 2016USD ($)ft² | Dec. 31, 2015USD ($) | |
Real Estate Properties [Line Items] | |||||||
Rentable area of properties (in square feet) | ft² | 830,185 | ||||||
Net book value | $ 2,633,873 | $ 1,591,956 | |||||
Loss on impairment of real estate | 9,490 | $ 0 | $ 0 | ||||
Sacramento, CA | |||||||
Real Estate Properties [Line Items] | |||||||
Rentable area of properties (in square feet) | ft² | 337,811 | ||||||
Office Building | Disposal Group, Disposed of by Sale | Albuquerque, NM | 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 | 29,045 | ||||||
Net book value | $ 1,885 | ||||||
Aggregate sale price of properties sold, excluding closing costs | $ 2,000 | ||||||
Loss on impairment of real estate | 230 | ||||||
Office Building | Disposal Group, Disposed of by Sale | Minneapolis, NM | One building | |||||||
Real Estate Properties [Line Items] | |||||||
Loss on impairment of real estate | 9,260 | ||||||
Office Building | Discontinued operations | Falls Church, VA | 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 | 164,746 | ||||||
Net book value | $ 12,901 | ||||||
Aggregate sale price of properties sold, excluding closing costs | $ 13,523 | ||||||
Increase the carrying value of property | $ 619 | ||||||
Subsequent Event | Office Building | Disposal Group, Disposed of by Sale | Minneapolis, NM | 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 | 193,594 | ||||||
Aggregate sale price of properties sold, excluding closing costs | $ 20,000 | ||||||
Subsequent Event | 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 | ||||||
Subsequent Event | 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 | ||||||
FPO Transaction | Disposal Group, Disposed of by Sale | |||||||
Real Estate Properties [Line Items] | |||||||
Number of properties | property | 28 | ||||||
Number of buildings | building | 61 | ||||||
Net book value | $ 658,190 |
Real Estate Properties - Balanc
Real Estate Properties - Balance Sheet Information for Disposal of Property (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets of discontinued operations | $ 0 | $ 12,541 |
Liabilities of discontinued operations | $ 0 | 45 |
Discontinued operations | Discontinued Operations, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Real estate properties, net | 12,260 | |
Other assets | 281 | |
Assets of discontinued operations | 12,541 | |
Other liabilities | 45 | |
Liabilities of discontinued operations | $ 45 |
Real Estate Properties - Income
Real Estate Properties - Income Statement Information for Disposal of Property (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) from discontinued operations | $ 21,829 | $ 34,878 | $ (227,347) |
Discontinued Operations, Held-for-sale | Discontinued operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Rental income | 17 | 68 | 114 |
Real estate taxes | (88) | (97) | (92) |
Utility expenses | (97) | (146) | (161) |
Other operating expenses | (202) | (300) | (272) |
General and administrative | (76) | (114) | (114) |
Increase in carrying value of property included in discontinued operations | 619 | 0 | 0 |
Income (loss) from discontinued operations | $ 173 | $ (589) | $ (525) |
Real Estate Properties - 2016 D
Real Estate Properties - 2016 Dispositions (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2016USD ($)ft²buildingproperty | Mar. 31, 2017 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)ft² | Dec. 31, 2015USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Rentable area of properties (in square feet) | ft² | 830,185 | ||||
Net book value | $ 2,633,873 | $ 1,591,956 | |||
Gain on sale of real estate | 0 | 79 | $ 0 | ||
Deferred gain on sale of real estate | 712 | ||||
One building | Disposal Group, Held-for-sale | Savannah, GA | Office Building | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of properties owned | property | 1 | ||||
Number of Buildings | building | 1 | ||||
Rentable area of properties (in square feet) | ft² | 35,228 | ||||
Net book value | $ 2,986 | ||||
Aggregate sale price of properties sold, excluding closing costs | 4,000 | ||||
Mortgage loan | $ 3,600 | ||||
LIBOR | Disposal Group, Disposed of by Sale | Savannah, GA | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Basis spread on variable rate | 4.00% | ||||
Minimum | LIBOR | Disposal Group, Disposed of by Sale | Savannah, GA | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Basis spread on variable rate | 5.00% | ||||
Other Assets | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Deferred gain on sale of real estate | 712 | $ 712 | |||
Real Estate Loan | Other Assets | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Financing receivable | $ 3,600 |
Real Estate Properties - Future
Real Estate Properties - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Real Estate [Abstract] | |
2,018 | $ 367,883 |
2,019 | 330,792 |
2,020 | 258,847 |
2,021 | 220,758 |
2,022 | 180,558 |
Thereafter | 564,621 |
Total | $ 1,923,459 |
Real Estate Properties - Operat
Real Estate Properties - Operating Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)tenant | |
Concentration Risk [Line Items] | |
Number of government tenants | tenant | 26 |
Rent expense, net of subleased revenue | $ | $ 374 |
Tenant concentration | |
Concentration Risk [Line Items] | |
Percentage termination right, 2018 | 0.80% |
Percentage termination right, 2019 | 5.60% |
Percentage termination right, 2020 | 10.30% |
Percentage termination right, 2021 | 2.30% |
Percentage termination right, 2022 | 5.50% |
Percentage termination right, 2023 | 1.00% |
Percentage termination right, 2024 | 0.50% |
Percentage termination right, 2025 | 0.60% |
Percentage termination right, 2026 | 2.30% |
Percentage termination right, 2027 | 1.80% |
Government Tenants, All Other | Tenant concentration | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 4.50% |
15 Government Tenants | Tenant concentration | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 11.70% |
Real Estate Properties - Futu_2
Real Estate Properties - Future Minimum Rental Payments (Details) | Dec. 31, 2017USD ($) |
Real Estate [Abstract] | |
2,018 | $ 1,543 |
2,019 | 1,584 |
2,020 | 1,627 |
2,021 | 139 |
Total | $ 4,893 |
Business and Property Managem_2
Business and Property Management Agreements with RMR LLC (Details) - RMR LLC $ in Thousands | Jun. 05, 2015 | May 31, 2015shares | Dec. 31, 2017USD ($)employeeagreement | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Related Party Transaction [Line Items] | |||||
Number of employees | employee | 0 | ||||
Number of agreements with RMR LLC to provide management services | agreement | 2 | ||||
Management fees as percentage of gross collected rents | 3.00% | ||||
Construction supervision fees as percentage of construction costs | 5.00% | ||||
Net business management fees | $ 12,464 | $ 10,222 | $ 9,934 | ||
Recognized amortization of the liability | 603 | 603 | 372 | ||
Shares issued (in shares) | shares | 19,339 | ||||
Reimbursement amounts | 15,045 | 12,276 | 9,641 | ||
Internal audit costs | 276 | 235 | 252 | ||
Net Property Management and Construction Supervision Fees | |||||
Related Party Transaction [Line Items] | |||||
Transaction amount | 11,566 | 8,949 | 7,977 | ||
Net Property Management and Construction Supervision Fees, Amortization Liability | |||||
Related Party Transaction [Line Items] | |||||
Transaction amount | $ 484 | $ 484 | $ 246 | ||
Transition Services | |||||
Related Party Transaction [Line Items] | |||||
Duration of transition services | 120 days | ||||
Amended And Restate Business Management Agreement | |||||
Related Party Transaction [Line Items] | |||||
Percentage applied on average historical cost of real estate investment properties acquired | 0.50% | ||||
Base management fee payable as percentage of average historical cost of real estate investments | 0.70% | ||||
Percentage of average closing stock price on stock exchange | 0.70% | ||||
Management fee payable as percentage of average market capitalization exceeding specified amount | 0.50% | ||||
Measurement period for incentive management fee | 3 years | ||||
Percentage for limitation and adjustments of incentive management fee payable | 12.00% | ||||
Percentage for limitation and adjustments of incentive management fee payable, minimum total return per share percentage change | 5.00% | ||||
Average closing price of our common shares, consecutive trading days | 10 days | ||||
Highest Average closing price of our common shares, final consecutive trading days | 30 days | ||||
Percentage of base business management fee payable in common shares | 1.50% | ||||
Amended And Restate Business Management Agreement | Up C Transaction | |||||
Related Party Transaction [Line Items] | |||||
Written notice for convenience | 60 days | ||||
Window of written notice after calendar year | 60 days | ||||
Window for written notice after change of control | 12 months | ||||
Remaining termination fee term | 10 years | ||||
Minimum | Amended And Restate Business Management Agreement | |||||
Related Party Transaction [Line Items] | |||||
Threshold amount of average market capitalization | $ 250,000 | ||||
Percentage for limitation and adjustments of incentive management fee payable, total return per share percentage, reduction | 2.00% | ||||
Minimum | Amended And Restate Business Management Agreement | Up C Transaction | |||||
Related Party Transaction [Line Items] | |||||
Termination fee term | 19 years | ||||
Maximum | Amended And Restate Business Management Agreement | |||||
Related Party Transaction [Line Items] | |||||
Threshold amount of real estate investments | $ 250,000 | ||||
Base management fee payable average market capitalization | $ 250,000 | ||||
Percentage for limitation and adjustments of incentive management fee payable, total return per share percentage, reduction | 5.00% | ||||
Maximum | Amended And Restate Business Management Agreement | Up C Transaction | |||||
Related Party Transaction [Line Items] | |||||
Termination fee term | 20 years |
Related Party Transactions - Up
Related Party Transactions - Up-C Transaction (Details) $ in Thousands | Dec. 14, 2015shares | Jun. 05, 2015USD ($)companyshares | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)agreementshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares |
Related Party Transaction [Line Items] | ||||||
Common shares held | 99,145,921 | 71,177,906 | ||||
Common shares owned in RMR Inc. | 1,214,225 | |||||
Up C Transaction | Class A common shares | ||||||
Related Party Transaction [Line Items] | ||||||
Common shares owned in RMR Inc. | 1,214,225 | |||||
Up C Transaction | RMR Inc | Class A member units | ||||||
Related Party Transaction [Line Items] | ||||||
Shares issued in connection with acquisition | 768,032 | |||||
Up C Transaction | RMR Inc | Class A common shares | ||||||
Related Party Transaction [Line Items] | ||||||
Non-cash loss related to distribution of shares | $ | $ 12,368 | |||||
Up C Transaction | SIR | Class A common shares | ||||||
Related Party Transaction [Line Items] | ||||||
Common shares held | 441,056 | 441,056 | ||||
RMR LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Number of agreements with RMR LLC to provide management services | agreement | 2 | |||||
Rental income earned | $ | $ 303 | $ 366 | $ 341 | |||
RMR Inc | Up C Transaction | ||||||
Related Party Transaction [Line Items] | ||||||
Number of other companies to whom management services were provided by related party | company | 3 | |||||
Shares issued in connection with acquisition | 700,000 | |||||
Cash consideration | $ | $ 3,917 | |||||
RMR Inc | Up C Transaction | RMR Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Shares issued in connection with acquisition | 1,541,201 | |||||
Managing Trustees Barry And Adam Portnoy Member | Up C Transaction | RMR Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Number of shares under lock up and registration agreement | 700,000 | |||||
Period over which shares remain under lock up and registration agreement | 10 years | |||||
Direct and indirect economic interest in RMR LLC as a percent | 51.90% | |||||
Voting power of outstanding capital stock of RMR Inc | 91.40% | |||||
Common Shares | ||||||
Related Party Transaction [Line Items] | ||||||
Number of shares granted to each trustee under the award plan | 27,907,029 | 723,222 | ||||
Common Shares | Officers and Other Employees | ||||||
Related Party Transaction [Line Items] | ||||||
Number of shares granted to each trustee under the award plan | 57,350 | 53,400 | 53,100 | |||
Aggregate market value of shares awarded | $ | $ 1,067 | $ 1,183 | $ 841 | |||
2009 Award Plan | Common Shares | Tranche One | Officers and Other Employees | ||||||
Related Party Transaction [Line Items] | ||||||
Vesting percentage | 20.00% | |||||
2009 Award Plan | Common Shares | Tranche Two | Officers and Other Employees | ||||||
Related Party Transaction [Line Items] | ||||||
Vesting percentage | 20.00% | |||||
2009 Award Plan | Common Shares | Tranche Three | Officers and Other Employees | ||||||
Related Party Transaction [Line Items] | ||||||
Vesting percentage | 20.00% | |||||
2009 Award Plan | Common Shares | Tranche Four | Officers and Other Employees | ||||||
Related Party Transaction [Line Items] | ||||||
Vesting percentage | 20.00% | |||||
2009 Award Plan | Common Shares | Tranche Five | Officers and Other Employees | ||||||
Related Party Transaction [Line Items] | ||||||
Vesting percentage | 20.00% |
Related Party Transactions - RE
Related Party Transactions - REITs, for which RMR LLC provides Management Services (Details) $ in Thousands | Mar. 05, 2015shares | Mar. 04, 2015USD ($)shares | Dec. 31, 2017USD ($)companyshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Related Party Transaction [Line Items] | |||||
Equity in earnings (losses) of investees | $ (13) | $ 137 | $ 20 | ||
Equity in unrealized gain (loss) of investees | $ 9,428 | 11,359 | (5,513) | ||
SIR | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership interest | 27.80% | ||||
Equity in earnings (losses) of investees | $ 21,584 | 35,381 | 21,882 | ||
SIR | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership interest | 27.80% | ||||
SIR Common shares of beneficial interest acquired pursuant to stock purchase agreement | shares | 24,918,421 | ||||
SIR | Lakewood Capital Partners LP | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership interest | 3.90% | ||||
SIR Common shares of beneficial interest acquired pursuant to stock purchase agreement | shares | 3,418,421 | ||||
Cash purchase price | $ 95,203 | ||||
SIR | Adam Portnoy | Lakewood Capital Partners LP | |||||
Related Party Transaction [Line Items] | |||||
SIR Common shares of beneficial interest acquired pursuant to stock purchase agreement | shares | 2,429 | 87,606 | |||
SIR | Barry Portnoy | Lakewood Capital Partners LP | |||||
Related Party Transaction [Line Items] | |||||
SIR Common shares of beneficial interest acquired pursuant to stock purchase agreement | shares | 107,606 | ||||
AIC | |||||
Related Party Transaction [Line Items] | |||||
Number of entities to whom RMR provides management services | company | 4 | ||||
Amount invested in equity investee | $ 8,304 | 7,235 | 6,946 | ||
Equity in earnings (losses) of investees | 608 | 137 | 20 | ||
Equity in unrealized gain (loss) of investees | 461 | 152 | (20) | ||
RMR LLC | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction | $ 12,464 | 10,222 | 9,934 | ||
RMR LLC | AIC | |||||
Related Party Transaction [Line Items] | |||||
Service fee percentage | 3.00% | ||||
Property Insurance Premium Expense, June 2018 | AIC | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction | $ 757 | ||||
Property Insurance Premium Expense, June 2017 | AIC | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction | 1,032 | ||||
Property Insurance Premium Expense, June 2016 | AIC | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction | 1,277 | ||||
Property Insurance Premium Expense | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction | $ 91 | $ 106 | $ 316 |
Concentration (Details)
Concentration (Details) | 12 Months Ended | ||
Dec. 31, 2017buildingstatepropertygovernment_tenantstate_government | Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||
Number of state governments | state_government | 13 | ||
Number of other governments | government_tenant | 5 | ||
Annualized rental income, excluding properties classified as discontinued operations | Virginia | |||
Concentration Risk [Line Items] | |||
Annualized Rental income percent | 23.20% | ||
Annualized rental income, excluding properties classified as discontinued operations | District of Columbia | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 43.30% | ||
Annualized Rental income percent | 17.70% | ||
Annualized rental income, excluding properties classified as discontinued operations | Maryland | |||
Concentration Risk [Line Items] | |||
Annualized Rental income percent | 14.90% | ||
Annualized rental income, excluding properties classified as discontinued operations | California | |||
Concentration Risk [Line Items] | |||
Annualized Rental income percent | 9.60% | ||
Annualized rental income, excluding properties classified as discontinued operations | Georgia | |||
Concentration Risk [Line Items] | |||
Annualized Rental income percent | 5.60% | ||
Annualized rental income, excluding properties classified as discontinued operations | New York | |||
Concentration Risk [Line Items] | |||
Annualized Rental income percent | 4.40% | ||
Annualized rental income, excluding properties classified as discontinued operations | Massachusetts | |||
Concentration Risk [Line Items] | |||
Annualized Rental income percent | 3.20% | ||
Annualized rental income, excluding properties classified as discontinued operations | Tenant concentration | U S Government, State Governments, and Other Governments | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 62.60% | 87.90% | 92.80% |
Annualized rental income, excluding properties classified as discontinued operations | Tenant concentration | U.S. Government | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 43.50% | 60.60% | 67.00% |
Continuing operations | |||
Concentration Risk [Line Items] | |||
Number of properties owned | property | 108 | ||
Number of buildings | building | 167 | ||
Number of states in which acquired properties located | state | 30 |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Details) $ in Thousands | Oct. 02, 2017USD ($)buildingjoint_venturepropertymortgage_noteloan | Jul. 20, 2017USD ($) | Nov. 30, 2017USD ($) | Jul. 31, 2017USD ($) | Jun. 30, 2016USD ($) | May 31, 2016USD ($) | Mar. 31, 2016USD ($)buildingproperty | Feb. 29, 2016USD ($)buildingproperty | Dec. 31, 2017USD ($)buildingjoint_venturepropertyloan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Feb. 23, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Unsecured revolving credit facility | $ 570,000 | $ 160,000 | ||||||||||
Maximum borrowing capacity on revolving credit facility | 2,500,000 | |||||||||||
Aggregate principal amount of properties collateralized | 183,147 | |||||||||||
Unsecured term loans, net | $ 547,852 | 547,171 | ||||||||||
Number of loans assumed | loan | 8 | |||||||||||
Number of properties collateralized | property | 8 | |||||||||||
Number of buildings collateralized | building | 8 | |||||||||||
Number of joint ventures | joint_venture | 2 | |||||||||||
Gain (loss) on early extinguishment of debt | $ (1,715) | $ 104 | $ 34 | |||||||||
Aggregate nbv of real estate collateralized | 432,562 | |||||||||||
Unsecured term loan, due in 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount | $ 300,000 | |||||||||||
Interest rate (as a percent) | 3.00% | |||||||||||
The weighted average annual interest rate (as a percent) | 2.50% | 1.90% | 1.60% | |||||||||
Unsecured term loan, due in 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount | $ 250,000 | |||||||||||
Interest rate (as a percent) | 3.40% | |||||||||||
The weighted average annual interest rate (as a percent) | 2.90% | 2.30% | 2.00% | |||||||||
4% Senior Unsecured Notes Due 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 4.00% | |||||||||||
5.875% Senior Unsecured Notes Due 2046 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount | $ 300,000 | |||||||||||
Interest rate (as a percent) | 5.875% | |||||||||||
Underwriter option exercise amount | $ 10,000 | |||||||||||
Unsecured revolving credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unsecured revolving credit facility | $ 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 | |||||||||||
Commitment fee percentage | 0.25% | |||||||||||
Interest rate (as a percent) | 2.70% | |||||||||||
The weighted average annual interest rate (as a percent) | 2.40% | 1.70% | 1.50% | |||||||||
Long-term debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount | $ 550,000 | |||||||||||
Senior unsecured notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount | 960,000 | |||||||||||
Letter of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gain (loss) on early extinguishment of debt | $ (1,715) | |||||||||||
Letter of Credit | Bridge Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount | $ 750,000 | |||||||||||
Debt term | 364 days | |||||||||||
Subsequent Event | Unsecured revolving credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unsecured term loans, net | $ 595,000 | |||||||||||
Senior unsecured notes | 4% Senior Unsecured Notes Due 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount | $ 300,000 | |||||||||||
Interest rate (as a percent) | 4.00% | |||||||||||
Proceeds from Issuance of Debt | $ 295,399 | |||||||||||
Senior unsecured notes | 5.875% Senior Unsecured Notes Due 2046 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior unsecured notes, net | $ 299,691 | |||||||||||
Mortgages | 6.21% Mortgage Note | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 6.21% | |||||||||||
Gain (loss) on early extinguishment of debt | (21) | |||||||||||
Extinguishment of debt | $ 23,473 | |||||||||||
Mortgages | 5.55% Mortgage Note | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (as a percent) | 5.55% | |||||||||||
Gain (loss) on early extinguishment of debt | $ 125 | |||||||||||
Extinguishment of debt | $ 83,000 | |||||||||||
First Potomac Realty Trust | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of loans assumed | loan | 5 | |||||||||||
Long term debt acquired | $ 167,936 | |||||||||||
Number of properties collateralized | property | 5 | |||||||||||
Number of buildings collateralized | building | 5 | |||||||||||
Number of mortgage notes securing joint ventures | mortgage_note | 2 | |||||||||||
Number of joint ventures | joint_venture | 2 | |||||||||||
First Potomac Realty Trust | Mortgages | FPO Mortgage | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of loans assumed | mortgage_note | 5 | |||||||||||
Long term debt acquired | $ 167,548 | |||||||||||
Fair value of debt | 167,936 | |||||||||||
Repayment of principal | $ 10,000 | |||||||||||
First Potomac Realty Trust | Mortgages | Joint Venture Mortgage | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long term debt acquired | $ 82,000 | |||||||||||
Number of properties collateralized | property | 2 | |||||||||||
Number of buildings collateralized | building | 3 | |||||||||||
First Potomac Realty Trust | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of joint ventures | joint_venture | 2 | |||||||||||
First Potomac Realty Trust | Joint Venture Property 1 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of ownership interest | 50.00% | |||||||||||
First Potomac Realty Trust | Joint Venture Property 2 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of ownership interest | 51.00% | |||||||||||
Landover, MD | Mortgages | 6.21% Mortgage Note | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of properties collateralized | property | 1 | |||||||||||
Number of buildings collateralized | building | 1 | |||||||||||
Reston, VA | Mortgages | 5.55% Mortgage Note | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of properties collateralized | property | 1 | |||||||||||
Number of buildings collateralized | building | 2 | |||||||||||
LIBOR | Unsecured term loan, due in 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.40% | |||||||||||
LIBOR | Unsecured term loan, due in 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.80% | |||||||||||
LIBOR | Unsecured revolving credit facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.25% |
Indebtedness - Future Principal
Indebtedness - Future Principal Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 3,672 |
2,019 | 931,541 |
2,020 | 338,433 |
2,021 | 14,420 |
2,022 | 575,518 |
Thereafter | 399,563 |
Total | 2,263,147 |
Unamortized premiums, discounts and certain issuance costs | 18,055 |
Total debt outstanding | $ 2,245,092 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Asset Measured at Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value of Assets and Liabilities | |||
Common shares owned in RMR Inc. | 1,214,225 | ||
Historical cost | $ 26,888 | ||
Unrealized gain on investment in available for sale securities | 24,042 | $ 30,465 | $ (9,391) |
Recurring | |||
Fair Value of Assets and Liabilities | |||
Investment in RMR Inc. | 72,005 | ||
Recurring | Level 1 inputs | |||
Fair Value of Assets and Liabilities | |||
Investment in RMR Inc. | 72,005 | ||
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 | ||
Discontinued Operations, Held-for-sale | Nonrecurring | |||
Fair Value of Assets and Liabilities | |||
Property held for sale and classified as discontinued operations | 19,667 | ||
Discontinued Operations, Held-for-sale | Nonrecurring | Level 1 inputs | |||
Fair Value of Assets and Liabilities | |||
Property held for sale and classified as discontinued operations | 0 | ||
Discontinued Operations, Held-for-sale | Nonrecurring | Level 2 inputs | |||
Fair Value of Assets and Liabilities | |||
Property held for sale and classified as discontinued operations | 19,667 | ||
Discontinued Operations, Held-for-sale | Nonrecurring | Level 3 inputs | |||
Fair Value of Assets and Liabilities | |||
Property held for sale and classified as discontinued operations | $ 0 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value of Financial Instruments | ||
Senior Notes | $ 944,140 | $ 646,844 |
Mortgage notes payable | $ 183,100 | 27,837 |
Senior unsecured notes, 3.750% 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 | $ 1,127,240 | 674,681 |
Carrying Amount | Senior unsecured notes, 3.750% interest rate, due in 2019 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 348,096 | 346,952 |
Carrying Amount | Senior unsecured notes, 5.875% interest rate, due in 2046 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 300,232 | 299,892 |
Carrying Amount | Senior unsecured notes, 4.000% interest rate, due in 2022 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 295,812 | 0 |
Carrying Amount | Mortgage note payable, 4.050% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 64,293 | 0 |
Carrying Amount | Mortgage note payable, 5.720% interest rate, due in 2020 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 36,085 | 0 |
Carrying Amount | Mortgage note payable, 4.220% interest rate, due in 2022 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 27,906 | 0 |
Carrying Amount | Mortgage note payable, 4.800% interest rate, due in 2023 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 25,501 | 0 |
Carrying Amount | Mortgage note payable, 5.877% interest rate, due in 2021 | ||
Fair Value of Financial Instruments | ||
Mortgage notes payable | 13,620 | 13,841 |
Carrying Amount | Mortgage note payable, 7.000% interest rate, due in 2019 | ||
Fair Value of Financial Instruments | ||
Mortgage notes payable | 8,391 | 8,778 |
Carrying Amount | Mortgage note payable, 8.150% interest rate, due in 2021 | ||
Fair Value of Financial Instruments | ||
Mortgage notes payable | 4,111 | 5,218 |
Carrying Amount | Mortgage note payable, 4.260% interest rate, due in 2020 | ||
Fair Value of Financial Instruments | ||
Mortgage notes payable | 3,193 | 0 |
Fair Value | ||
Fair Value of Financial Instruments | ||
Mortgage notes payable | 1,164,606 | 675,601 |
Fair Value | Senior unsecured notes, 3.750% interest rate, due in 2019 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 354,993 | 354,078 |
Fair Value | Senior unsecured notes, 5.875% interest rate, due in 2046 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 320,416 | 292,268 |
Fair Value | Senior unsecured notes, 4.000% interest rate, due in 2022 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 302,655 | 0 |
Fair Value | Mortgage note payable, 4.050% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 65,198 | 0 |
Fair Value | Mortgage note payable, 5.720% interest rate, due in 2020 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 36,332 | 0 |
Fair Value | Mortgage note payable, 4.220% interest rate, due in 2022 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 28,432 | 0 |
Fair Value | Mortgage note payable, 4.800% interest rate, due in 2023 | ||
Fair Value of Financial Instruments | ||
Senior Notes | 25,904 | 0 |
Fair Value | Mortgage note payable, 5.877% interest rate, due in 2021 | ||
Fair Value of Financial Instruments | ||
Mortgage notes payable | 14,565 | 14,492 |
Fair Value | Mortgage note payable, 7.000% interest rate, due in 2019 | ||
Fair Value of Financial Instruments | ||
Mortgage notes payable | 8,555 | 9,188 |
Fair Value | Mortgage note payable, 8.150% interest rate, due in 2021 | ||
Fair Value of Financial Instruments | ||
Mortgage notes payable | 4,340 | 5,575 |
Fair Value | Mortgage note payable, 4.260% interest rate, due in 2020 | ||
Fair Value of Financial Instruments | ||
Mortgage notes payable | $ 3,216 | $ 0 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Additional Information (Details) $ in Thousands | Oct. 02, 2017USD ($)mortgage_noteloan | Dec. 31, 2017loan |
Debt Instrument [Line Items] | ||
Number of loans assumed | loan | 8 | |
First Potomac Realty Trust | ||
Debt Instrument [Line Items] | ||
Number of loans assumed | loan | 5 | |
Long term debt acquired | $ 167,936 | |
FPO Mortgage | Mortgages | First Potomac Realty Trust | ||
Debt Instrument [Line Items] | ||
Number of loans assumed | mortgage_note | 5 | |
Long term debt acquired | $ 167,548 | |
Fair value of debt | $ 167,936 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($)installmenttrustee$ / sharesshares | Dec. 31, 2016USD ($)trusteeshares | Dec. 31, 2015USD ($)trusteeshares | May 17, 2017trustee | Dec. 31, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of Trustees | trustee | 1 | ||||
2009 Award Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted to each trustee under the award plan | 75,350 | 65,900 | 65,600 | ||
Number of installments | installment | 5 | ||||
Vesting schedule of unvested shares | |||||
Unvested shares | 104,250 | 98,970 | 96,725 | 90,338 | |
2018 (in shares) | 40,120 | ||||
2019 (in shares) | 31,230 | ||||
2020 (in shares) | 21,630 | ||||
2021 (in shares) | 11,270 | ||||
Share Awards, additional disclosures | |||||
Estimated future compensation expense for the unvested shares | $ | $ 1,933 | ||||
Closing share price of the entity's common shares (in dollars per share) | $ / shares | $ 18.54 | ||||
Weighted average period of recognition of compensation expenses (in years) | 21 months | ||||
Compensation expense | $ | $ 1,377 | $ 1,371 | $ 932 | ||
Shares available for issuance under the Award Plan | 1,493,119 | ||||
2009 Award Plan | Trustees | Common Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of Trustees | trustee | 6 | 5 | 5 | ||
Number of shares granted to each trustee under the award plan | 3,000 | 2,500 | 2,500 | ||
Aggregate market value of shares awarded | $ | $ 392 | $ 244 | $ 247 | ||
Market value of common shares awarded to each trustee (in dollars) | $ | $ 65 | $ 49 | $ 49 |
Shareholders' Equity - Unvested
Shareholders' Equity - Unvested Shares Activity (Details) - 2009 Award Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | |||
Unvested shares at the beginning of the period | 98,970 | 96,725 | 90,338 |
Shares granted (in shares) | 75,350 | 65,900 | 65,600 |
Shared forfeited (in shares) | (1,020) | ||
Shares Vested (in shares) | (70,070) | (63,655) | (58,193) |
Unvested shares at the end of the period | 104,250 | 98,970 | 96,725 |
Weighted Average Grant Date Fair Value | |||
Unvested shares at the beginning of the period (in dollars per share) | $ 20.59 | $ 20.11 | $ 23.40 |
Granted (in dollars per share) | 19.36 | 21.66 | 16.59 |
Shared forfeited (in dollars per share) | 23.41 | ||
Vested (in dollars per share) | 20.80 | 20.97 | 21.20 |
Unvested shares at the end of the period (in dollars per share) | $ 19.56 | $ 20.59 | $ 20.11 |
Shareholders' Equity - Distribu
Shareholders' Equity - Distributions (Details) $ / shares in Units, $ in Thousands | Jan. 19, 2018USD ($)$ / shares | Dec. 14, 2015$ / sharesshares | Dec. 31, 2017$ / shares | Sep. 30, 2017$ / shares | Jun. 30, 2017$ / shares | Mar. 31, 2017$ / shares | Dec. 31, 2016$ / shares | Sep. 30, 2016$ / shares | Jun. 30, 2016$ / shares | Mar. 31, 2016$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares |
Class of Stock [Line Items] | |||||||||||||
Common distributions declared (in dollars per share) | $ / shares | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.43 | $ 1.72 | $ 1.72 | $ 1.72 | ||
Distributions to common shareholders | $ | $ 145,209 | $ 122,366 | $ 121,660 | ||||||||||
Non-cash distribution, per share, related to distribution of shares (in dollars per share) | $ / shares | $ 0.1284 | ||||||||||||
Characterization of distributions paid or accrued as a percentage of ordinary income | 50.65% | 62.74% | 47.44% | ||||||||||
Characterization of distributions paid or accrued as a percentage of return of capital | 49.35% | 36.21% | 37.12% | ||||||||||
Characterization of distributions paid or accrued as a percentage of capital gain | 12.90% | ||||||||||||
Characterization of distributions paid or accrued as a percentage of Internal Revenue Code section 1250 gain | 1.61% | ||||||||||||
Characterization of distributions paid or accrued as a percentage of qualified dividend | 1.05% | 0.93% | |||||||||||
Distribution payable to common shareholders | $ | $ 145,209 | $ 122,366 | $ 130,792 | ||||||||||
Class A member units | RMR Inc | Up C Transaction | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares distributed (in shares) | shares | 768,032 | ||||||||||||
Ratio of shares distributed per share | 0.0108 | ||||||||||||
Subsequent Event | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Distribution payable to common shareholders (in dollars per share) | $ / shares | $ 0.43 | ||||||||||||
Distribution payable to common shareholders | $ | $ 42,633 |
Shareholders' Equity - Sale of
Shareholders' Equity - Sale of Shares/Share Repurchases (Details) $ / shares in Units, $ in Thousands | Jan. 19, 2018USD ($) | Aug. 03, 2017USD ($)$ / sharesshares | Jul. 05, 2017$ / sharesshares | May 17, 2017USD ($)trusteeshares | Jan. 31, 2018$ / sharesshares | Sep. 30, 2016$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Class of Stock [Line Items] | |||||||||
Distribution payable to common shareholders | $ | $ 145,209 | $ 122,366 | $ 130,792 | ||||||
Consideration received from sale of stock | $ | $ 493,866 | ||||||||
Shares paid for tax withholding | shares | 450 | 14,302 | |||||||
Number of Trustees | trustee | 1 | ||||||||
Adjustment for tax withholding | $ | $ 10 | ||||||||
Shares paid for tax withholding, average price per share (in dollars per share) | $ / shares | $ 23.54 | ||||||||
Former Employee Of RMR LLC | |||||||||
Class of Stock [Line Items] | |||||||||
Share repurchased (in shares) | shares | 13,914 | ||||||||
Shares repurchased (in dollars per share) | $ / shares | $ 18.30 | ||||||||
Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Distribution payable to common shareholders | $ | $ 42,633 | ||||||||
Subsequent Event | Former Employee Of RMR LLC | |||||||||
Class of Stock [Line Items] | |||||||||
Share repurchased (in shares) | shares | 617 | ||||||||
Shares repurchased (in dollars per share) | $ / shares | $ 18.54 | ||||||||
Underwritten Public Offering | |||||||||
Class of Stock [Line Items] | |||||||||
Sale of stock (in dollars per share) | $ / shares | $ 18.50 | ||||||||
Number of shares sold (in shares) | shares | 25,000,000 | ||||||||
Over-Allotment Option | |||||||||
Class of Stock [Line Items] | |||||||||
Sale of stock (in dollars per share) | $ / shares | $ 18.50 | ||||||||
Number of shares sold (in shares) | shares | 2,907,029 |
Shareholders' Equity - Cumulati
Shareholders' Equity - Cumulative Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance beginning | $ 935,004 | $ 956,651 | $ 1,297,449 |
Other comprehensive income (loss) | 33,470 | 41,824 | (14,904) |
Balance ending | 1,330,043 | 935,004 | 956,651 |
Unrealized Gain (Loss) on Investment in Available for Sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance beginning | 21,074 | (9,391) | 0 |
Other comprehensive income (loss) before reclassifications | 24,042 | 30,465 | (9,391) |
Amounts reclassified from cumulative other comprehensive income to net income (loss) | 0 | 0 | 0 |
Other comprehensive income (loss) | 24,042 | 30,465 | (9,391) |
Balance ending | 45,116 | 21,074 | (9,391) |
Equity in Unrealized Gains (Losses) of Investees | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance beginning | 5,883 | (5,476) | 37 |
Other comprehensive income (loss) before reclassifications | 9,462 | 11,254 | (5,592) |
Amounts reclassified from cumulative other comprehensive income to net income (loss) | (34) | 105 | 79 |
Other comprehensive income (loss) | 9,428 | 11,359 | (5,513) |
Balance ending | 15,311 | 5,883 | (5,476) |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance beginning | 26,957 | (14,867) | 37 |
Other comprehensive income (loss) before reclassifications | 33,504 | 41,719 | (14,983) |
Amounts reclassified from cumulative other comprehensive income to net income (loss) | (34) | 105 | 79 |
Other comprehensive income (loss) | 33,470 | 41,824 | (14,904) |
Balance ending | $ 60,427 | $ 26,957 | $ (14,867) |
Equity Investment in Select I_3
Equity Investment in Select Income REIT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings (losses) of investees | $ (13) | $ 137 | $ 20 |
Unrealized gain (loss) from investees | 9,428 | 11,359 | (5,513) |
Loss on impairment of real estate | 9,490 | 0 | 0 |
Distributions of earnings from Select Income REIT | $ 21,584 | $ 35,381 | 18,620 |
Common shares held | 99,145,921 | 71,177,906 | |
Distribution of RMR common stock received from Select Income REIT | $ 0 | $ 0 | 5,244 |
Gain (loss) on issuance of shares by Select Income REIT | $ 72 | 86 | (42,145) |
SIR | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity investments, common shares owned | 24,918,421 | ||
Percentage of outstanding shares owned | 27.80% | ||
Equity in earnings (losses) of investees | $ 21,584 | 35,381 | 21,882 |
Unrealized gain (loss) from investees | 8,967 | 11,207 | (5,493) |
Amortization of the difference between carrying value and share of underlying equity | 166,272 | 4,742 | |
Loss on impairment of real estate | 203,297 | ||
The amount of investment in exceed the underlying equity of the investee | (87,137) | ||
Accretion of equity in earnings | 2,944 | 2,956 | |
Investment at carrying value | 467,499 | ||
Equity Investments, market value | 626,200 | ||
Distributions of earnings from Select Income REIT | 50,832 | 50,335 | $ 47,030 |
SIR | Class A common shares | |||
Schedule of Equity Method Investments [Line Items] | |||
Common shares held | 441,056 | ||
Distribution of RMR common stock received from Select Income REIT | $ 5,244 | ||
SIR | SIR | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings (losses) of investees | 608 | 137 | 20 |
Loss on impairment of real estate | $ 229 | $ 0 | $ 0 |
Issuance of shares, net (in shares) | 59,502 | 65,900 | 29,414,279 |
Gain (loss) on issuance of shares by Select Income REIT | $ 72 | $ 86 | $ (42,145) |
Equity Investment in Select I_4
Equity Investment in Select Income REIT - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||||
Real estate properties, net | $ 2,633,873 | $ 1,591,956 | ||
Acquired real estate leases, net | 351,872 | 124,848 | ||
Cash and cash equivalents | 16,569 | 29,941 | $ 8,785 | |
Rents receivable, net | 61,429 | 48,458 | ||
Other assets, net | 96,033 | 68,005 | ||
Total assets | 3,703,565 | 2,385,066 | ||
Unsecured revolving credit facility | 570,000 | 160,000 | ||
Unsecured term loan, net | 547,852 | 547,171 | ||
Senior unsecured notes, net | 944,140 | 646,844 | ||
Mortgage notes payable, net | 183,100 | 27,837 | ||
Assumed real estate lease obligations, net | 13,635 | 10,626 | ||
Other liabilities | 89,440 | 54,019 | ||
Shareholders' equity | 1,330,043 | 935,004 | $ 956,651 | $ 1,297,449 |
Total liabilities and shareholders’ equity | 3,703,565 | 2,385,066 | ||
SIR | SIR | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Real estate properties, net | 3,905,616 | 3,899,792 | ||
Properties held for sale | 5,829 | 0 | ||
Acquired real estate leases, net | 477,577 | 506,298 | ||
Cash and cash equivalents | 658,719 | 22,127 | ||
Rents receivable, net | 127,672 | 124,089 | ||
Other assets, net | 127,617 | 87,376 | ||
Total assets | 5,303,030 | 4,639,682 | ||
Unsecured revolving credit facility | 0 | 327,000 | ||
ILPT revolving credit facility | 750,000 | 0 | ||
Unsecured term loan, net | 348,870 | 348,373 | ||
Senior unsecured notes, net | 1,777,425 | 1,430,300 | ||
Mortgage notes payable, net | 210,785 | 245,643 | ||
Assumed real estate lease obligations, net | 68,783 | 77,622 | ||
Other liabilities | 155,348 | 136,782 | ||
Shareholders' equity | 1,991,819 | 2,073,962 | ||
Total liabilities and shareholders’ equity | $ 5,303,030 | $ 4,639,682 |
Equity Investment in Select I_5
Equity Investment in Select Income REIT - Income Statement Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Rental income | $ 107,170 | $ 70,179 | $ 69,887 | $ 69,296 | $ 66,030 | $ 64,478 | $ 64,061 | $ 63,611 | $ 316,532 | $ 258,180 | $ 248,549 |
Real estate taxes | 37,942 | 30,703 | 29,906 | ||||||||
Other operating expenses | 65,349 | 54,290 | 50,425 | ||||||||
Depreciation and amortization | 109,588 | 73,153 | 68,696 | ||||||||
Acquisition and transaction related costs | 0 | 1,191 | 811 | ||||||||
General and administrative | 18,847 | 14,897 | 14,826 | ||||||||
Loss on impairment of real estate | 9,490 | 0 | 0 | ||||||||
Total expenses | 262,214 | 191,503 | 182,580 | ||||||||
Operating income | 54,318 | 66,677 | 65,969 | ||||||||
Dividend income | 1,216 | 971 | 811 | ||||||||
Interest expense | (65,406) | (45,060) | (37,008) | ||||||||
Loss on early extinguishment of debt | (1,715) | 104 | 34 | ||||||||
Loss on distribution to common shareholders of The RMR Group Inc. common stock | 0 | 0 | (12,368) | ||||||||
Income (loss) from continuing operations before income taxes, equity in earnings (losses) of investees and gain on sale of real estate | (9,625) | 22,850 | 17,452 | ||||||||
Income tax expense | (101) | (101) | (86) | ||||||||
Equity in earnings (losses) of investees | (13) | 137 | 20 | ||||||||
Net income (loss) | $ 12,090 | $ 57,843 | $ (209,961) | ||||||||
Weighted average common shares outstanding (basic) (in shares) | 84,633 | 71,050 | 70,700 | ||||||||
Weighted average common shares outstanding (diluted) (in shares) | 84,653 | 71,071 | 70,700 | ||||||||
Net income attributed to SIR per common share (basic and diluted) (in dollars per share) | $ (0.18) | $ 0.11 | $ 0.16 | $ 0.10 | $ 0.17 | $ 0.16 | $ 0.24 | $ 0.24 | $ 0.14 | $ 0.81 | $ (2.97) |
SIR | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Loss on impairment of real estate | $ 203,297 | ||||||||||
Equity in earnings (losses) of investees | $ 21,584 | $ 35,381 | 21,882 | ||||||||
SIR | SIR | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Rental income | 392,285 | 387,015 | 364,139 | ||||||||
Tenant reimbursements and other income | 75,818 | 74,992 | 64,226 | ||||||||
Total revenues | 468,103 | 462,007 | 428,365 | ||||||||
Real estate taxes | 44,131 | 42,879 | 37,460 | ||||||||
Other operating expenses | 55,567 | 52,957 | 41,953 | ||||||||
Depreciation and amortization | 137,672 | 133,762 | 122,906 | ||||||||
Acquisition and transaction related costs | 1,075 | 306 | 21,987 | ||||||||
General and administrative | 54,818 | 28,602 | 25,859 | ||||||||
Write-off of straight line rents receivable, net | 12,517 | 5,484 | 0 | ||||||||
Loss on asset impairment | 4,047 | 0 | 0 | ||||||||
Loss on impairment of real estate | 229 | 0 | 0 | ||||||||
Total expenses | 310,056 | 263,990 | 250,165 | ||||||||
Operating income | 158,047 | 198,017 | 178,200 | ||||||||
Dividend income | 1,587 | 1,268 | 1,666 | ||||||||
Interest expense | (92,870) | (82,620) | (73,885) | ||||||||
Loss on early extinguishment of debt | 0 | 0 | (6,845) | ||||||||
Loss on distribution to common shareholders of The RMR Group Inc. common stock | 0 | 0 | (23,717) | ||||||||
Income (loss) from continuing operations before income taxes, equity in earnings (losses) of investees and gain on sale of real estate | 66,764 | 116,665 | 75,419 | ||||||||
Income tax expense | (466) | (448) | (515) | ||||||||
Equity in earnings (losses) of investees | 608 | 137 | 20 | ||||||||
Net income | 66,906 | 116,354 | 74,924 | ||||||||
Net income allocated to noncontrolling interest | 0 | (33) | (176) | ||||||||
Net income (loss) | $ 66,906 | $ 116,321 | $ 74,748 | ||||||||
Weighted average common shares outstanding (basic) (in shares) | 89,351 | 89,304 | 86,699 | ||||||||
Weighted average common shares outstanding (diluted) (in shares) | 89,370 | 89,324 | 86,708 | ||||||||
Net income attributed to SIR per common share (basic and diluted) (in dollars per share) | $ 0.75 | $ 1.30 | $ 0.86 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) $ / shares in Units, $ in Thousands | Oct. 09, 2018USD ($)$ / sharesshares | Jul. 05, 2017$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)ft² |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Rentable area of properties (in square feet) | ft² | 830,185 | ||||
Net book value | $ 2,633,873 | $ 1,591,956 | |||
Underwritten Public Offering | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of shares sold (in shares) | shares | 25,000,000 | ||||
Sale of stock (in dollars per share) | $ / shares | $ 18.50 | ||||
Subsequent Event | Underwritten Public Offering | Common Shares | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of shares sold (in shares) | shares | 24,918,421 | ||||
Sale of stock (in dollars per share) | $ / shares | $ 18.25 | ||||
Proceeds from sale of equity | $ 434,700 | ||||
Loss on sale | $ 19,372 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net gain (loss) on issuance of shares by Select Income REIT | $ 72 | $ 86 | $ (42,145) |
Loss on impairment of Select Income REIT investment | 0 | 0 | (203,297) |
Equity in earnings of Select Income REIT | (13) | 137 | 20 |
Income (loss) from discontinued operations | 21,829 | 34,878 | (227,347) |
SIR | Discontinued operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net gain (loss) on issuance of shares by Select Income REIT | 72 | 86 | (42,145) |
Loss on impairment of Select Income REIT investment | 0 | 0 | (203,297) |
Equity in earnings of Select Income REIT | 21,584 | 35,381 | 18,620 |
Income (loss) from property discontinued operations | 173 | (589) | (525) |
Income (loss) from discontinued operations | $ 21,829 | $ 34,878 | $ (227,347) |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||
Rental income | $ 107,170 | $ 70,179 | $ 69,887 | $ 69,296 | $ 66,030 | $ 64,478 | $ 64,061 | $ 63,611 | $ 316,532 | $ 258,180 | $ 248,549 |
Net income (loss) available for common shareholders per common share | $ (18,266) | $ 10,989 | $ 11,677 | $ 7,415 | $ 12,065 | $ 11,578 | $ 16,813 | $ 17,387 | $ 11,815 | $ 57,843 | $ (209,961) |
Net income (loss) available for common shareholders per common share (basic and diluted) (in dollars per share) | $ (0.18) | $ 0.11 | $ 0.16 | $ 0.10 | $ 0.17 | $ 0.16 | $ 0.24 | $ 0.24 | $ 0.14 | $ 0.81 | $ (2.97) |
Common distributions declared (in dollars per share) | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.43 | $ 1.72 | $ 1.72 | $ 1.72 |
Retrospective Effect of Chang_2
Retrospective Effect of Change in Adoption of Accounting Standards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase (decrease) in cash from operating activities | $ 137,554 | $ 126,722 | $ 110,837 |
Restricted cash | 3,111 | 530 | 1,022 |
ASU 2016-15 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accretion of equity in earnings | (2,945) | (2,956) | (3,262) |
ASU 2016-18 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase (decrease) in cash from operating activities | $ (1,563) | $ 492 | $ 1,258 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | Oct. 09, 2018USD ($)$ / sharesshares | Sep. 14, 2018USD ($)ft²property$ / sharesshares | Sep. 13, 2018shares | Jul. 05, 2017$ / sharesshares | Dec. 31, 2016ft²property |
Subsequent Event [Line Items] | |||||
Number of properties acquired | property | 3 | ||||
Rentable area of properties (in square feet) | ft² | 830,185 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Reverse stock split ratio | 0.25 | ||||
SIR | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Share conversion ratio | 1.04 | ||||
Number of properties acquired | property | 99 | ||||
Rentable area of properties (in square feet) | ft² | 16,538,462 | ||||
Share price (in dollars per share) | $ / shares | $ 11.29 | ||||
Purchase price | $ | $ 2,738,488 | ||||
Transaction costs | $ | 40,000 | ||||
Repayment of debt assumed | $ | $ 1,720,000 | ||||
SIR | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of shares owned (in shares) | 24,918,421 | ||||
SIR | ILPT | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of shares owned (in shares) | 45,000,000 | ||||
Underwritten Public Offering | |||||
Subsequent Event [Line Items] | |||||
Number of shares sold (in shares) | 25,000,000 | ||||
Sale of stock (in dollars per share) | $ / shares | $ 18.50 | ||||
Common Shares | Underwritten Public Offering | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of shares sold (in shares) | 24,918,421 | ||||
Sale of stock (in dollars per share) | $ / shares | $ 18.25 | ||||
Proceeds from sale of equity | $ | $ 434,700 |
SCHEDULE III REAL ESTATE AND _2
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cost amount carried at Close of Period | ||||
Total | $ 2,975,721 | $ 1,888,760 | $ 1,696,132 | $ 1,682,480 |
Accumulated Depreciation | (341,848) | $ (296,804) | $ (255,879) | $ (219,791) |
131 Clayton Street, Montgomery, AL | ||||
Initial Cost to Company | ||||
Land | 920 | |||
Buildings and Equipment | 9,084 | |||
Costs Capitalized Subsequent to Acquisition | 29 | |||
Cost amount carried at Close of Period | ||||
Land | 920 | |||
Buildings and Equipment | 9,113 | |||
Total | 10,033 | |||
Accumulated Depreciation | (1,479) | |||
4344 Carmichael Road, Montgomery, AL | ||||
Initial Cost to Company | ||||
Land | 1,374 | |||
Buildings and Equipment | 11,658 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 1,374 | |||
Buildings and Equipment | 11,658 | |||
Total | 13,032 | |||
Accumulated Depreciation | (1,166) | |||
15451 North 28th Avenue, Phoenix, AZ | ||||
Initial Cost to Company | ||||
Land | 1,917 | |||
Buildings and Equipment | 7,416 | |||
Costs Capitalized Subsequent to Acquisition | 456 | |||
Cost amount carried at Close of Period | ||||
Land | 1,917 | |||
Buildings and Equipment | 7,872 | |||
Total | 9,789 | |||
Accumulated Depreciation | (628) | |||
711 14th Avenue, Safford, AZ | ||||
Initial Cost to Company | ||||
Land | 460 | |||
Buildings and Equipment | 11,708 | |||
Costs Capitalized Subsequent to Acquisition | 348 | |||
Cost amount carried at Close of Period | ||||
Land | 460 | |||
Buildings and Equipment | 12,056 | |||
Total | 12,516 | |||
Accumulated Depreciation | (2,232) | |||
5045 East Butler Street, Fresno, CA | ||||
Initial Cost to Company | ||||
Land | 7,276 | |||
Buildings and Equipment | 61,118 | |||
Costs Capitalized Subsequent to Acquisition | 58 | |||
Cost amount carried at Close of Period | ||||
Land | 7,276 | |||
Buildings and Equipment | 61,176 | |||
Total | 68,452 | |||
Accumulated Depreciation | (23,497) | |||
10949 N. Mather Boulevard, Rancho Cordova, CA | ||||
Initial Cost to Company | ||||
Land | 562 | |||
Buildings and Equipment | 16,923 | |||
Costs Capitalized Subsequent to Acquisition | 101 | |||
Cost amount carried at Close of Period | ||||
Land | 562 | |||
Buildings and Equipment | 17,024 | |||
Total | 17,586 | |||
Accumulated Depreciation | (1,769) | |||
11020 Sun Center Drive, Rancho Cordova, CA | ||||
Initial Cost to Company | ||||
Land | 1,466 | |||
Buildings and Equipment | 8,797 | |||
Costs Capitalized Subsequent to Acquisition | 408 | |||
Cost amount carried at Close of Period | ||||
Land | 1,466 | |||
Buildings and Equipment | 9,205 | |||
Total | 10,670 | |||
Accumulated Depreciation | (237) | |||
801 K Street, Sacramento, CA | ||||
Initial Cost to Company | ||||
Land | 4,688 | |||
Buildings and Equipment | 61,995 | |||
Costs Capitalized Subsequent to Acquisition | 4,915 | |||
Cost amount carried at Close of Period | ||||
Land | 4,688 | |||
Buildings and Equipment | 66,910 | |||
Total | 71,598 | |||
Accumulated Depreciation | (3,608) | |||
9800 Goethe Road, Sacramento, CA | ||||
Initial Cost to Company | ||||
Land | 1,550 | |||
Buildings and Equipment | 12,263 | |||
Costs Capitalized Subsequent to Acquisition | 949 | |||
Cost amount carried at Close of Period | ||||
Land | 1,550 | |||
Buildings and Equipment | 13,212 | |||
Total | 14,762 | |||
Accumulated Depreciation | (2,598) | |||
9815 Goethe Road, Sacramento, CA | ||||
Initial Cost to Company | ||||
Land | 1,450 | |||
Buildings and Equipment | 9,465 | |||
Costs Capitalized Subsequent to Acquisition | 1,523 | |||
Cost amount carried at Close of Period | ||||
Land | 1,450 | |||
Buildings and Equipment | 10,988 | |||
Total | 12,438 | |||
Accumulated Depreciation | (1,731) | |||
Capital Place, Sacramento, CA | ||||
Initial Cost to Company | ||||
Land | 2,290 | |||
Buildings and Equipment | 35,891 | |||
Costs Capitalized Subsequent to Acquisition | 7,032 | |||
Cost amount carried at Close of Period | ||||
Land | 2,290 | |||
Buildings and Equipment | 42,923 | |||
Total | 45,213 | |||
Accumulated Depreciation | (8,331) | |||
4181 Ruffin Road, San Diego, CA | ||||
Initial Cost to Company | ||||
Land | 5,250 | |||
Buildings and Equipment | 10,549 | |||
Costs Capitalized Subsequent to Acquisition | 4,294 | |||
Cost amount carried at Close of Period | ||||
Land | 5,250 | |||
Buildings and Equipment | 14,843 | |||
Total | 20,093 | |||
Accumulated Depreciation | (3,332) | |||
4560 Viewridge Road, San Diego, CA | ||||
Initial Cost to Company | ||||
Land | 4,269 | |||
Buildings and Equipment | 18,316 | |||
Costs Capitalized Subsequent to Acquisition | 4,195 | |||
Cost amount carried at Close of Period | ||||
Land | 4,347 | |||
Buildings and Equipment | 22,433 | |||
Total | 26,780 | |||
Accumulated Depreciation | (9,882) | |||
9174 Sky Park Centre, San Diego, CA | ||||
Initial Cost to Company | ||||
Land | 685 | |||
Buildings and Equipment | 5,530 | |||
Costs Capitalized Subsequent to Acquisition | 2,653 | |||
Cost amount carried at Close of Period | ||||
Land | 685 | |||
Buildings and Equipment | 8,183 | |||
Total | 8,868 | |||
Accumulated Depreciation | (2,684) | |||
603 San Juan Avenue, Stockton, CA | ||||
Initial Cost to Company | ||||
Land | 563 | |||
Buildings and Equipment | 5,470 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 563 | |||
Buildings and Equipment | 5,470 | |||
Total | 6,033 | |||
Accumulated Depreciation | (741) | |||
16194 West 45th Street, Golden, CO | ||||
Initial Cost to Company | ||||
Land | 494 | |||
Buildings and Equipment | 152 | |||
Costs Capitalized Subsequent to Acquisition | 6,495 | |||
Cost amount carried at Close of Period | ||||
Land | 494 | |||
Buildings and Equipment | 6,647 | |||
Total | 7,141 | |||
Accumulated Depreciation | (3,316) | |||
12795 West Alameda Parkway, Lakewood, CO | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 4,111 | |||
Initial Cost to Company | ||||
Land | 2,640 | |||
Buildings and Equipment | 23,777 | |||
Costs Capitalized Subsequent to Acquisition | 1,065 | |||
Cost amount carried at Close of Period | ||||
Land | 2,640 | |||
Buildings and Equipment | 24,842 | |||
Total | 27,482 | |||
Accumulated Depreciation | (4,931) | |||
Corporate Center, Lakewood, CO | ||||
Initial Cost to Company | ||||
Land | 2,887 | |||
Buildings and Equipment | 27,537 | |||
Costs Capitalized Subsequent to Acquisition | 3,898 | |||
Cost amount carried at Close of Period | ||||
Land | 2,887 | |||
Buildings and Equipment | 31,435 | |||
Total | 34,322 | |||
Accumulated Depreciation | (11,581) | |||
20 Massachusetts Avenue, Washington, DC | ||||
Initial Cost to Company | ||||
Land | 12,009 | |||
Buildings and Equipment | 51,528 | |||
Costs Capitalized Subsequent to Acquisition | 21,245 | |||
Cost amount carried at Close of Period | ||||
Land | 12,231 | |||
Buildings and Equipment | 72,551 | |||
Total | 84,782 | |||
Accumulated Depreciation | (33,237) | |||
625 Indiana Avenue, Washington DC, DC | ||||
Initial Cost to Company | ||||
Land | 26,000 | |||
Buildings and Equipment | 25,955 | |||
Costs Capitalized Subsequent to Acquisition | 6,555 | |||
Cost amount carried at Close of Period | ||||
Land | 26,000 | |||
Buildings and Equipment | 32,510 | |||
Total | 58,510 | |||
Accumulated Depreciation | (6,374) | |||
11 Dupont Circle, NW, Washington DC | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 64,293 | |||
Initial Cost to Company | ||||
Land | 28,255 | |||
Buildings and Equipment | 44,743 | |||
Costs Capitalized Subsequent to Acquisition | 1,299 | |||
Cost amount carried at Close of Period | ||||
Land | 28,255 | |||
Buildings and Equipment | 46,042 | |||
Total | 74,297 | |||
Accumulated Depreciation | (316) | |||
1211 Connecticut Avenue, NW, Washington DC | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 27,906 | |||
Initial Cost to Company | ||||
Land | 30,388 | |||
Buildings and Equipment | 24,667 | |||
Costs Capitalized Subsequent to Acquisition | 220 | |||
Cost amount carried at Close of Period | ||||
Land | 30,388 | |||
Buildings and Equipment | 24,887 | |||
Total | 55,275 | |||
Accumulated Depreciation | (176) | |||
1401 K Street, NW, Washington DC | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 25,501 | |||
Initial Cost to Company | ||||
Land | 29,215 | |||
Buildings and Equipment | 34,656 | |||
Costs Capitalized Subsequent to Acquisition | 1,194 | |||
Cost amount carried at Close of Period | ||||
Land | 29,215 | |||
Buildings and Equipment | 35,850 | |||
Total | 65,065 | |||
Accumulated Depreciation | (291) | |||
440 First Street, NW, Washington DC | ||||
Initial Cost to Company | ||||
Land | 27,903 | |||
Buildings and Equipment | 38,624 | |||
Costs Capitalized Subsequent to Acquisition | 683 | |||
Cost amount carried at Close of Period | ||||
Land | 27,903 | |||
Buildings and Equipment | 39,307 | |||
Total | 67,210 | |||
Accumulated Depreciation | (241) | |||
500 First Street, NW, Washington DC | ||||
Initial Cost to Company | ||||
Land | 30,478 | |||
Buildings and Equipment | 15,660 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 30,478 | |||
Buildings and Equipment | 15,660 | |||
Total | 46,138 | |||
Accumulated Depreciation | (112) | |||
840 First Street, NE, Washington DC | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 36,085 | |||
Initial Cost to Company | ||||
Land | 42,727 | |||
Buildings and Equipment | 73,249 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 42,727 | |||
Buildings and Equipment | 73,249 | |||
Total | 115,976 | |||
Accumulated Depreciation | (458) | |||
7850 Southwest 6th Court, Plantation, FL | ||||
Initial Cost to Company | ||||
Land | 4,800 | |||
Buildings and Equipment | 30,592 | |||
Costs Capitalized Subsequent to Acquisition | 383 | |||
Cost amount carried at Close of Period | ||||
Land | 4,800 | |||
Buildings and Equipment | 30,975 | |||
Total | 35,775 | |||
Accumulated Depreciation | (5,224) | |||
8900 Grand Oak Circle, Tampa, FL | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 8,391 | |||
Initial Cost to Company | ||||
Land | 1,100 | |||
Buildings and Equipment | 11,773 | |||
Costs Capitalized Subsequent to Acquisition | 169 | |||
Cost amount carried at Close of Period | ||||
Land | 1,100 | |||
Buildings and Equipment | 11,942 | |||
Total | 13,042 | |||
Accumulated Depreciation | (2,169) | |||
181 Spring Street NW, Atlanta, GA | ||||
Initial Cost to Company | ||||
Land | 5,717 | |||
Buildings and Equipment | 20,017 | |||
Costs Capitalized Subsequent to Acquisition | 136 | |||
Cost amount carried at Close of Period | ||||
Land | 5,717 | |||
Buildings and Equipment | 20,153 | |||
Total | 25,871 | |||
Accumulated Depreciation | (2,719) | |||
Corporate Square, Atlanta, GA | ||||
Initial Cost to Company | ||||
Land | 3,996 | |||
Buildings and Equipment | 29,762 | |||
Costs Capitalized Subsequent to Acquisition | 27,321 | |||
Cost amount carried at Close of Period | ||||
Land | 3,996 | |||
Buildings and Equipment | 57,083 | |||
Total | 61,079 | |||
Accumulated Depreciation | (11,541) | |||
Executive Park, Atlanta, GA | ||||
Initial Cost to Company | ||||
Land | 1,521 | |||
Buildings and Equipment | 11,826 | |||
Costs Capitalized Subsequent to Acquisition | 4,003 | |||
Cost amount carried at Close of Period | ||||
Land | 1,521 | |||
Buildings and Equipment | 15,829 | |||
Total | 17,350 | |||
Accumulated Depreciation | (5,127) | |||
One Georgia Center, Atlanta, GA | ||||
Initial Cost to Company | ||||
Land | 10,250 | |||
Buildings and Equipment | 27,933 | |||
Costs Capitalized Subsequent to Acquisition | 3,581 | |||
Cost amount carried at Close of Period | ||||
Land | 10,250 | |||
Buildings and Equipment | 31,514 | |||
Total | 41,764 | |||
Accumulated Depreciation | (4,576) | |||
4712 Southpark Boulevard, Ellenwood, GA | ||||
Initial Cost to Company | ||||
Land | 1,390 | |||
Buildings and Equipment | 19,635 | |||
Costs Capitalized Subsequent to Acquisition | 74 | |||
Cost amount carried at Close of Period | ||||
Land | 1,390 | |||
Buildings and Equipment | 19,709 | |||
Total | 21,099 | |||
Accumulated Depreciation | (2,661) | |||
South Vinnell Way, Boise, ID | ||||
Initial Cost to Company | ||||
Land | 3,390 | |||
Buildings and Equipment | 29,026 | |||
Costs Capitalized Subsequent to Acquisition | 802 | |||
Cost amount carried at Close of Period | ||||
Land | 3,390 | |||
Buildings and Equipment | 29,828 | |||
Total | 33,218 | |||
Accumulated Depreciation | (4,059) | |||
2020 S. Arlington Heights, Arlington Heights, IL | ||||
Initial Cost to Company | ||||
Land | 1,450 | |||
Buildings and Equipment | 13,160 | |||
Costs Capitalized Subsequent to Acquisition | 730 | |||
Cost amount carried at Close of Period | ||||
Land | 1,450 | |||
Buildings and Equipment | 13,890 | |||
Total | 15,340 | |||
Accumulated Depreciation | (2,746) | |||
Intech Park, Indianapolis, IN | ||||
Initial Cost to Company | ||||
Land | 4,170 | |||
Buildings and Equipment | 68,888 | |||
Costs Capitalized Subsequent to Acquisition | 3,822 | |||
Cost amount carried at Close of Period | ||||
Land | 4,170 | |||
Buildings and Equipment | 72,710 | |||
Total | 76,880 | |||
Accumulated Depreciation | (11,657) | |||
400 State Street, Kansas City, KS | ||||
Initial Cost to Company | ||||
Land | 640 | |||
Buildings and Equipment | 9,932 | |||
Costs Capitalized Subsequent to Acquisition | 4,599 | |||
Cost amount carried at Close of Period | ||||
Land | 640 | |||
Buildings and Equipment | 14,531 | |||
Total | 15,171 | |||
Accumulated Depreciation | (2,559) | |||
7125 Industrial Road, Florence, KY | ||||
Initial Cost to Company | ||||
Land | 1,698 | |||
Buildings and Equipment | 11,722 | |||
Costs Capitalized Subsequent to Acquisition | 81 | |||
Cost amount carried at Close of Period | ||||
Land | 1,698 | |||
Buildings and Equipment | 11,803 | |||
Total | 13,501 | |||
Accumulated Depreciation | (1,468) | |||
251 Causeway Street, Boston, MA | ||||
Initial Cost to Company | ||||
Land | 5,100 | |||
Buildings and Equipment | 17,293 | |||
Costs Capitalized Subsequent to Acquisition | 1,752 | |||
Cost amount carried at Close of Period | ||||
Land | 5,100 | |||
Buildings and Equipment | 19,045 | |||
Total | 24,145 | |||
Accumulated Depreciation | (3,427) | |||
75 Pleasant Street, Malden, MA | ||||
Initial Cost to Company | ||||
Land | 1,050 | |||
Buildings and Equipment | 31,086 | |||
Costs Capitalized Subsequent to Acquisition | 159 | |||
Cost amount carried at Close of Period | ||||
Land | 1,050 | |||
Buildings and Equipment | 31,245 | |||
Total | 32,295 | |||
Accumulated Depreciation | (5,970) | |||
25 Newport Avenue, Quincy, MA | ||||
Initial Cost to Company | ||||
Land | 2,700 | |||
Buildings and Equipment | 9,199 | |||
Costs Capitalized Subsequent to Acquisition | 1,297 | |||
Cost amount carried at Close of Period | ||||
Land | 2,700 | |||
Buildings and Equipment | 10,496 | |||
Total | 13,196 | |||
Accumulated Depreciation | (1,662) | |||
One Montvale Avenue, Stoneham, MA | ||||
Initial Cost to Company | ||||
Land | 1,670 | |||
Buildings and Equipment | 11,035 | |||
Costs Capitalized Subsequent to Acquisition | 2,095 | |||
Cost amount carried at Close of Period | ||||
Land | 1,670 | |||
Buildings and Equipment | 13,130 | |||
Total | 14,800 | |||
Accumulated Depreciation | (2,308) | |||
Annapolis Commerce Center, Annapolis, MD | ||||
Initial Cost to Company | ||||
Land | 4,057 | |||
Buildings and Equipment | 7,665 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 4,057 | |||
Buildings and Equipment | 7,665 | |||
Total | 11,722 | |||
Accumulated Depreciation | (55) | |||
4201 Patterson Avenue, Baltimore, MD | ||||
Initial Cost to Company | ||||
Land | 901 | |||
Buildings and Equipment | 8,097 | |||
Costs Capitalized Subsequent to Acquisition | 3,976 | |||
Cost amount carried at Close of Period | ||||
Land | 901 | |||
Buildings and Equipment | 12,073 | |||
Total | 12,974 | |||
Accumulated Depreciation | (4,520) | |||
Ammendale Commerce Center, Beltsville, MD | ||||
Initial Cost to Company | ||||
Land | 4,879 | |||
Buildings and Equipment | 9,498 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 4,879 | |||
Buildings and Equipment | 9,498 | |||
Total | 14,377 | |||
Accumulated Depreciation | (70) | |||
Indian Creek Technology Park, Beltsville, MD | ||||
Initial Cost to Company | ||||
Land | 8,796 | |||
Buildings and Equipment | 12,093 | |||
Costs Capitalized Subsequent to Acquisition | 24 | |||
Cost amount carried at Close of Period | ||||
Land | 8,796 | |||
Buildings and Equipment | 12,117 | |||
Total | 20,913 | |||
Accumulated Depreciation | (86) | |||
Gateway 270 West, Clarksburg, MD | ||||
Initial Cost to Company | ||||
Land | 12,104 | |||
Buildings and Equipment | 9,688 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 12,104 | |||
Buildings and Equipment | 9,688 | |||
Total | 21,792 | |||
Accumulated Depreciation | (64) | |||
Hillside Center, Columbia, MD | ||||
Initial Cost to Company | ||||
Land | 3,437 | |||
Buildings and Equipment | 4,228 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 3,437 | |||
Buildings and Equipment | 4,228 | |||
Total | 7,665 | |||
Accumulated Depreciation | (25) | |||
Snowden Center, Columbia, MD | ||||
Initial Cost to Company | ||||
Land | 7,955 | |||
Buildings and Equipment | 10,128 | |||
Costs Capitalized Subsequent to Acquisition | 54 | |||
Cost amount carried at Close of Period | ||||
Land | 7,955 | |||
Buildings and Equipment | 10,182 | |||
Total | 18,137 | |||
Accumulated Depreciation | (63) | |||
TenThreeTwenty, Columbia, MD | ||||
Initial Cost to Company | ||||
Land | 3,126 | |||
Buildings and Equipment | 16,361 | |||
Costs Capitalized Subsequent to Acquisition | 118 | |||
Cost amount carried at Close of Period | ||||
Land | 3,126 | |||
Buildings and Equipment | 16,479 | |||
Total | 19,605 | |||
Accumulated Depreciation | (103) | |||
20400 Century Boulevard, Germantown, MD | ||||
Initial Cost to Company | ||||
Land | 2,305 | |||
Buildings and Equipment | 9,890 | |||
Costs Capitalized Subsequent to Acquisition | 1,282 | |||
Cost amount carried at Close of Period | ||||
Land | 2,347 | |||
Buildings and Equipment | 11,130 | |||
Total | 13,477 | |||
Accumulated Depreciation | (5,296) | |||
Cloverleaf Center, Germantown, MD | ||||
Initial Cost to Company | ||||
Land | 11,890 | |||
Buildings and Equipment | 4,639 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 11,890 | |||
Buildings and Equipment | 4,639 | |||
Total | 16,529 | |||
Accumulated Depreciation | (39) | |||
3300 75th Avenue, Landover, MD | ||||
Initial Cost to Company | ||||
Land | 4,110 | |||
Buildings and Equipment | 36,371 | |||
Costs Capitalized Subsequent to Acquisition | 1,045 | |||
Cost amount carried at Close of Period | ||||
Land | 4,110 | |||
Buildings and Equipment | 37,416 | |||
Total | 41,526 | |||
Accumulated Depreciation | (7,271) | |||
1401 Rockville Pike, Rockville, MD | ||||
Initial Cost to Company | ||||
Land | 3,248 | |||
Buildings and Equipment | 29,258 | |||
Costs Capitalized Subsequent to Acquisition | 16,534 | |||
Cost amount carried at Close of Period | ||||
Land | 3,248 | |||
Buildings and Equipment | 45,792 | |||
Total | 49,040 | |||
Accumulated Depreciation | (17,237) | |||
2115 East Jefferson Street, Rockville, MD | ||||
Initial Cost to Company | ||||
Land | 3,349 | |||
Buildings and Equipment | 11,152 | |||
Costs Capitalized Subsequent to Acquisition | 328 | |||
Cost amount carried at Close of Period | ||||
Land | 3,349 | |||
Buildings and Equipment | 11,480 | |||
Total | 14,829 | |||
Accumulated Depreciation | (1,229) | |||
Metro Park North, Rockville, MD | ||||
Initial Cost to Company | ||||
Land | 11,159 | |||
Buildings and Equipment | 7,624 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 11,159 | |||
Buildings and Equipment | 7,624 | |||
Total | 18,783 | |||
Accumulated Depreciation | (59) | |||
Redland 520/530, Rockville, MD | ||||
Initial Cost to Company | ||||
Land | 12,714 | |||
Buildings and Equipment | 61,377 | |||
Costs Capitalized Subsequent to Acquisition | 1,217 | |||
Cost amount carried at Close of Period | ||||
Land | 12,714 | |||
Buildings and Equipment | 62,594 | |||
Total | 75,308 | |||
Accumulated Depreciation | (384) | |||
Redland 540, Rockville, MD | ||||
Initial Cost to Company | ||||
Land | 10,740 | |||
Buildings and Equipment | 17,714 | |||
Costs Capitalized Subsequent to Acquisition | 2,028 | |||
Cost amount carried at Close of Period | ||||
Land | 10,740 | |||
Buildings and Equipment | 19,742 | |||
Total | 30,482 | |||
Accumulated Depreciation | (111) | |||
Rutherford Business Park, Windsor Mill, MD | ||||
Initial Cost to Company | ||||
Land | 1,598 | |||
Buildings and Equipment | 10,219 | |||
Costs Capitalized Subsequent to Acquisition | 10 | |||
Cost amount carried at Close of Period | ||||
Land | 1,598 | |||
Buildings and Equipment | 10,229 | |||
Total | 11,827 | |||
Accumulated Depreciation | (1,299) | |||
Meadows Business Park, Woodlawn, MD | ||||
Initial Cost to Company | ||||
Land | 3,735 | |||
Buildings and Equipment | 21,509 | |||
Costs Capitalized Subsequent to Acquisition | 2,187 | |||
Cost amount carried at Close of Period | ||||
Land | 3,735 | |||
Buildings and Equipment | 23,696 | |||
Total | 27,431 | |||
Accumulated Depreciation | (3,907) | |||
11411 E. Jefferson Avenue, Detroit, MI | ||||
Initial Cost to Company | ||||
Land | 630 | |||
Buildings and Equipment | 18,002 | |||
Costs Capitalized Subsequent to Acquisition | 358 | |||
Cost amount carried at Close of Period | ||||
Land | 630 | |||
Buildings and Equipment | 18,360 | |||
Total | 18,990 | |||
Accumulated Depreciation | (3,460) | |||
330 South Second Avenue, Minneapolis, MN | ||||
Initial Cost to Company | ||||
Land | 3,991 | |||
Buildings and Equipment | 18,186 | |||
Costs Capitalized Subsequent to Acquisition | (4,246) | |||
Impairment/ Writedowns | (9,260) | |||
Cost amount carried at Close of Period | ||||
Land | 1,489 | |||
Buildings and Equipment | 16,442 | |||
Total | 17,931 | |||
Accumulated Depreciation | 0 | |||
Rosedale Corporate Plaza, Roseville, MN | ||||
Initial Cost to Company | ||||
Land | 672 | |||
Buildings and Equipment | 6,045 | |||
Costs Capitalized Subsequent to Acquisition | 1,505 | |||
Cost amount carried at Close of Period | ||||
Land | 672 | |||
Buildings and Equipment | 7,550 | |||
Total | 8,222 | |||
Accumulated Depreciation | (3,194) | |||
1300 Summit Street, Kansas City, MO | ||||
Initial Cost to Company | ||||
Land | 2,776 | |||
Buildings and Equipment | 12,070 | |||
Costs Capitalized Subsequent to Acquisition | 253 | |||
Cost amount carried at Close of Period | ||||
Land | 2,776 | |||
Buildings and Equipment | 12,323 | |||
Total | 15,099 | |||
Accumulated Depreciation | (1,614) | |||
4241-4300 NE 34th Street, Kansas City, MO | ||||
Initial Cost to Company | ||||
Land | 1,443 | |||
Buildings and Equipment | 6,193 | |||
Costs Capitalized Subsequent to Acquisition | 3,851 | |||
Cost amount carried at Close of Period | ||||
Land | 1,780 | |||
Buildings and Equipment | 9,707 | |||
Total | 11,487 | |||
Accumulated Depreciation | (3,893) | |||
1220 Echelon Parkway, Jackson, MS | ||||
Initial Cost to Company | ||||
Land | 440 | |||
Buildings and Equipment | 25,458 | |||
Costs Capitalized Subsequent to Acquisition | 48 | |||
Cost amount carried at Close of Period | ||||
Land | 440 | |||
Buildings and Equipment | 25,506 | |||
Total | 25,946 | |||
Accumulated Depreciation | (3,459) | |||
10-12 Celina Avenue, Nashua, NH | ||||
Initial Cost to Company | ||||
Land | 3,000 | |||
Buildings and Equipment | 14,052 | |||
Costs Capitalized Subsequent to Acquisition | 1,545 | |||
Cost amount carried at Close of Period | ||||
Land | 3,000 | |||
Buildings and Equipment | 15,597 | |||
Total | 18,597 | |||
Accumulated Depreciation | (2,956) | |||
50 West State Street, Trenton, NJ | ||||
Initial Cost to Company | ||||
Land | 5,000 | |||
Buildings and Equipment | 38,203 | |||
Costs Capitalized Subsequent to Acquisition | 2,620 | |||
Cost amount carried at Close of Period | ||||
Land | 5,000 | |||
Buildings and Equipment | 40,823 | |||
Total | 45,823 | |||
Accumulated Depreciation | (6,948) | |||
138 Delaware Avenue, Buffalo, NY | ||||
Initial Cost to Company | ||||
Land | 4,405 | |||
Buildings and Equipment | 18,899 | |||
Costs Capitalized Subsequent to Acquisition | 5,226 | |||
Cost amount carried at Close of Period | ||||
Land | 4,485 | |||
Buildings and Equipment | 24,045 | |||
Total | 28,530 | |||
Accumulated Depreciation | (11,064) | |||
Airline Corporate Center, Colonie, NY | ||||
Initial Cost to Company | ||||
Land | 790 | |||
Buildings and Equipment | 6,400 | |||
Costs Capitalized Subsequent to Acquisition | 32 | |||
Cost amount carried at Close of Period | ||||
Land | 790 | |||
Buildings and Equipment | 6,432 | |||
Total | 7,222 | |||
Accumulated Depreciation | (881) | |||
5000 Corporate Court, Holtsville, NY | ||||
Initial Cost to Company | ||||
Land | 6,530 | |||
Buildings and Equipment | 17,711 | |||
Costs Capitalized Subsequent to Acquisition | 2,477 | |||
Cost amount carried at Close of Period | ||||
Land | 6,530 | |||
Buildings and Equipment | 20,188 | |||
Total | 26,718 | |||
Accumulated Depreciation | (3,183) | |||
305 East 46th Street, New York, NY | ||||
Initial Cost to Company | ||||
Land | 36,800 | |||
Buildings and Equipment | 66,661 | |||
Costs Capitalized Subsequent to Acquisition | 4,438 | |||
Cost amount carried at Close of Period | ||||
Land | 36,800 | |||
Buildings and Equipment | 71,099 | |||
Total | 107,899 | |||
Accumulated Depreciation | (11,212) | |||
4600 25th Avenue, Salem, OR | ||||
Initial Cost to Company | ||||
Land | 6,510 | |||
Buildings and Equipment | 17,973 | |||
Costs Capitalized Subsequent to Acquisition | 4,278 | |||
Cost amount carried at Close of Period | ||||
Land | 6,510 | |||
Buildings and Equipment | 22,251 | |||
Total | 28,761 | |||
Accumulated Depreciation | (4,066) | |||
Synergy Business Park, Columbia, SC | ||||
Initial Cost to Company | ||||
Land | 1,439 | |||
Buildings and Equipment | 11,143 | |||
Costs Capitalized Subsequent to Acquisition | 4,803 | |||
Cost amount carried at Close of Period | ||||
Land | 1,439 | |||
Buildings and Equipment | 15,946 | |||
Total | 17,385 | |||
Accumulated Depreciation | (3,718) | |||
One Memphis Place, Memphis, TN | ||||
Initial Cost to Company | ||||
Land | 1,630 | |||
Buildings and Equipment | 5,645 | |||
Costs Capitalized Subsequent to Acquisition | 2,508 | |||
Cost amount carried at Close of Period | ||||
Land | 1,630 | |||
Buildings and Equipment | 8,153 | |||
Total | 9,783 | |||
Accumulated Depreciation | (1,434) | |||
701 Clay Road, Waco, TX | ||||
Initial Cost to Company | ||||
Land | 2,030 | |||
Buildings and Equipment | 8,708 | |||
Costs Capitalized Subsequent to Acquisition | 2,555 | |||
Cost amount carried at Close of Period | ||||
Land | 2,060 | |||
Buildings and Equipment | 11,233 | |||
Total | 13,293 | |||
Accumulated Depreciation | (4,708) | |||
14660,14672 and 14668 Lee Road, Chantilly, VA | ||||
Initial Cost to Company | ||||
Land | 6,966 | |||
Buildings and Equipment | 74,214 | |||
Costs Capitalized Subsequent to Acquisition | 294 | |||
Cost amount carried at Close of Period | ||||
Land | 6,966 | |||
Buildings and Equipment | 74,508 | |||
Total | 81,474 | |||
Accumulated Depreciation | (1,856) | |||
1408 Stephanie Way, Chesapeake, VA | ||||
Initial Cost to Company | ||||
Land | 1,403 | |||
Buildings and Equipment | 2,555 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 1,403 | |||
Buildings and Equipment | 2,555 | |||
Total | 3,958 | |||
Accumulated Depreciation | (21) | |||
1434 Crossways, Chesapeake, VA | ||||
Initial Cost to Company | ||||
Land | 3,617 | |||
Buildings and Equipment | 19,527 | |||
Costs Capitalized Subsequent to Acquisition | 276 | |||
Cost amount carried at Close of Period | ||||
Land | 3,617 | |||
Buildings and Equipment | 19,803 | |||
Total | 23,420 | |||
Accumulated Depreciation | (135) | |||
1441 Crossways Boulevard, Chesapeake, VA | ||||
Initial Cost to Company | ||||
Land | 2,485 | |||
Buildings and Equipment | 10,189 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 2,485 | |||
Buildings and Equipment | 10,189 | |||
Total | 12,674 | |||
Accumulated Depreciation | (73) | |||
535 Independence Parkway, Chesapeake, VA | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 3,193 | |||
Initial Cost to Company | ||||
Land | 2,465 | |||
Buildings and Equipment | 5,801 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 2,465 | |||
Buildings and Equipment | 5,801 | |||
Total | 8,266 | |||
Accumulated Depreciation | (41) | |||
Crossways, Chesapeake, VA | ||||
Initial Cost to Company | ||||
Land | 6,522 | |||
Buildings and Equipment | 40,267 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 6,522 | |||
Buildings and Equipment | 40,267 | |||
Total | 46,789 | |||
Accumulated Depreciation | (318) | |||
Crossways II, Chesapeake, VA | ||||
Initial Cost to Company | ||||
Land | 1,633 | |||
Buildings and Equipment | 8,035 | |||
Costs Capitalized Subsequent to Acquisition | 153 | |||
Cost amount carried at Close of Period | ||||
Land | 1,633 | |||
Buildings and Equipment | 8,188 | |||
Total | 9,821 | |||
Accumulated Depreciation | (57) | |||
Greenbrier Circle Corporate Center, Chesapeake, VA | ||||
Initial Cost to Company | ||||
Land | 4,489 | |||
Buildings and Equipment | 15,149 | |||
Costs Capitalized Subsequent to Acquisition | 14 | |||
Cost amount carried at Close of Period | ||||
Land | 4,489 | |||
Buildings and Equipment | 15,163 | |||
Total | 19,652 | |||
Accumulated Depreciation | (126) | |||
Greenbrier Technology Center I, Chesapeake, VA | ||||
Initial Cost to Company | ||||
Land | 2,514 | |||
Buildings and Equipment | 6,102 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 2,514 | |||
Buildings and Equipment | 6,102 | |||
Total | 8,616 | |||
Accumulated Depreciation | (51) | |||
Greenbrier Technology Center II, Chesapeake, VA | ||||
Initial Cost to Company | ||||
Land | 2,084 | |||
Buildings and Equipment | 5,581 | |||
Costs Capitalized Subsequent to Acquisition | 3 | |||
Cost amount carried at Close of Period | ||||
Land | 2,084 | |||
Buildings and Equipment | 5,584 | |||
Total | 7,668 | |||
Accumulated Depreciation | (47) | |||
Greenbrier Towers, Chesapeake, VA | ||||
Initial Cost to Company | ||||
Land | 3,437 | |||
Buildings and Equipment | 11,241 | |||
Costs Capitalized Subsequent to Acquisition | 27 | |||
Cost amount carried at Close of Period | ||||
Land | 3,437 | |||
Buildings and Equipment | 11,268 | |||
Total | 14,705 | |||
Accumulated Depreciation | (94) | |||
Enterchange at Meadowville, Chester, VA | ||||
Initial Cost to Company | ||||
Land | 1,478 | |||
Buildings and Equipment | 9,594 | |||
Costs Capitalized Subsequent to Acquisition | 283 | |||
Cost amount carried at Close of Period | ||||
Land | 1,478 | |||
Buildings and Equipment | 9,877 | |||
Total | 11,355 | |||
Accumulated Depreciation | (1,060) | |||
3920 Pender Drive, Fairfax, VA | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 13,620 | |||
Initial Cost to Company | ||||
Land | 2,963 | |||
Buildings and Equipment | 12,840 | |||
Costs Capitalized Subsequent to Acquisition | 12 | |||
Cost amount carried at Close of Period | ||||
Land | 2,963 | |||
Buildings and Equipment | 12,852 | |||
Total | 15,815 | |||
Accumulated Depreciation | (1,204) | |||
Pender Business Park, Fairfax, VA | ||||
Initial Cost to Company | ||||
Land | 2,529 | |||
Buildings and Equipment | 21,386 | |||
Costs Capitalized Subsequent to Acquisition | 193 | |||
Cost amount carried at Close of Period | ||||
Land | 2,529 | |||
Buildings and Equipment | 21,579 | |||
Total | 24,108 | |||
Accumulated Depreciation | (2,312) | |||
3201 Jermantown Road, Fairfax, VA | ||||
Initial Cost to Company | ||||
Land | 5,991 | |||
Buildings and Equipment | 25,619 | |||
Costs Capitalized Subsequent to Acquisition | 329 | |||
Cost amount carried at Close of Period | ||||
Land | 5,991 | |||
Buildings and Equipment | 25,948 | |||
Total | 31,939 | |||
Accumulated Depreciation | (213) | |||
7987 Ashton Avenue, Manassas, VA | ||||
Initial Cost to Company | ||||
Land | 1,562 | |||
Buildings and Equipment | 8,253 | |||
Costs Capitalized Subsequent to Acquisition | 333 | |||
Cost amount carried at Close of Period | ||||
Land | 1,562 | |||
Buildings and Equipment | 8,586 | |||
Total | 10,148 | |||
Accumulated Depreciation | (210) | |||
Gateway II, Norfolk, VA | ||||
Initial Cost to Company | ||||
Land | 1,194 | |||
Buildings and Equipment | 1,563 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 1,194 | |||
Buildings and Equipment | 1,563 | |||
Total | 2,757 | |||
Accumulated Depreciation | (13) | |||
Norfolk Business Center, Norfolk, VA | ||||
Initial Cost to Company | ||||
Land | 2,134 | |||
Buildings and Equipment | 5,430 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 2,134 | |||
Buildings and Equipment | 5,430 | |||
Total | 7,564 | |||
Accumulated Depreciation | (45) | |||
Norfolk Commerce Park II, Norfolk, VA | ||||
Initial Cost to Company | ||||
Land | 3,116 | |||
Buildings and Equipment | 10,709 | |||
Costs Capitalized Subsequent to Acquisition | 34 | |||
Cost amount carried at Close of Period | ||||
Land | 3,116 | |||
Buildings and Equipment | 10,743 | |||
Total | 13,859 | |||
Accumulated Depreciation | (76) | |||
1759 & 1760 Business Park Drive Reston, VA | ||||
Initial Cost to Company | ||||
Land | 9,066 | |||
Buildings and Equipment | 78,658 | |||
Costs Capitalized Subsequent to Acquisition | 2,413 | |||
Cost amount carried at Close of Period | ||||
Land | 9,066 | |||
Buildings and Equipment | 81,071 | |||
Total | 90,137 | |||
Accumulated Depreciation | (7,185) | |||
1775 Wiehle Avenue, Reston, VA | ||||
Initial Cost to Company | ||||
Land | 4,138 | |||
Buildings and Equipment | 26,120 | |||
Costs Capitalized Subsequent to Acquisition | 29 | |||
Cost amount carried at Close of Period | ||||
Land | 4,138 | |||
Buildings and Equipment | 26,149 | |||
Total | 30,287 | |||
Accumulated Depreciation | (163) | |||
9960 Mayland Drive, Richmond VA | ||||
Initial Cost to Company | ||||
Land | 2,614 | |||
Buildings and Equipment | 15,930 | |||
Costs Capitalized Subsequent to Acquisition | 1,844 | |||
Cost amount carried at Close of Period | ||||
Land | 2,614 | |||
Buildings and Equipment | 17,774 | |||
Total | 20,388 | |||
Accumulated Depreciation | (1,550) | |||
Aquia Commerce Center, Stafford, VA | ||||
Initial Cost to Company | ||||
Land | 2,090 | |||
Buildings and Equipment | 7,465 | |||
Costs Capitalized Subsequent to Acquisition | 730 | |||
Cost amount carried at Close of Period | ||||
Land | 2,090 | |||
Buildings and Equipment | 8,195 | |||
Total | 10,285 | |||
Accumulated Depreciation | (1,308) | |||
Atlantic Corporate Park, Sterling, VA | ||||
Initial Cost to Company | ||||
Land | 5,752 | |||
Buildings and Equipment | 29,323 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 5,752 | |||
Buildings and Equipment | 29,323 | |||
Total | 35,075 | |||
Accumulated Depreciation | (183) | |||
Sterling Business Park Lots 8 and 9, Sterling, VA | ||||
Initial Cost to Company | ||||
Land | 9,178 | |||
Buildings and Equipment | 44,324 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Cost amount carried at Close of Period | ||||
Land | 9,178 | |||
Buildings and Equipment | 44,324 | |||
Total | 53,502 | |||
Accumulated Depreciation | (277) | |||
Sterling Park Business Center, Sterling, VA | ||||
Initial Cost to Company | ||||
Land | 18,935 | |||
Buildings and Equipment | 21,191 | |||
Costs Capitalized Subsequent to Acquisition | 63 | |||
Cost amount carried at Close of Period | ||||
Land | 18,935 | |||
Buildings and Equipment | 21,254 | |||
Total | 40,189 | |||
Accumulated Depreciation | (154) | |||
65 Bowdoin Street, S. Burlington, VT | ||||
Initial Cost to Company | ||||
Land | 700 | |||
Buildings and Equipment | 8,416 | |||
Costs Capitalized Subsequent to Acquisition | 120 | |||
Cost amount carried at Close of Period | ||||
Land | 700 | |||
Buildings and Equipment | 8,536 | |||
Total | 9,236 | |||
Accumulated Depreciation | (1,656) | |||
840 North Broadway, Everett, WA | ||||
Initial Cost to Company | ||||
Land | 3,360 | |||
Buildings and Equipment | 15,376 | |||
Costs Capitalized Subsequent to Acquisition | 1,829 | |||
Cost amount carried at Close of Period | ||||
Land | 3,360 | |||
Buildings and Equipment | 17,205 | |||
Total | 20,565 | |||
Accumulated Depreciation | (2,504) | |||
Stevens Center, Richland, WA | ||||
Initial Cost to Company | ||||
Land | 3,970 | |||
Buildings and Equipment | 17,035 | |||
Costs Capitalized Subsequent to Acquisition | 2,431 | |||
Cost amount carried at Close of Period | ||||
Land | 4,042 | |||
Buildings and Equipment | 19,394 | |||
Total | 23,436 | |||
Accumulated Depreciation | (9,176) | |||
11050 West Liberty Drive, Milwaukee, WI | ||||
Initial Cost to Company | ||||
Land | 945 | |||
Buildings and Equipment | 4,539 | |||
Costs Capitalized Subsequent to Acquisition | 103 | |||
Cost amount carried at Close of Period | ||||
Land | 945 | |||
Buildings and Equipment | 4,642 | |||
Total | 5,587 | |||
Accumulated Depreciation | (763) | |||
882 TJ Jackson Drive, Falling Waters, WV | ||||
Initial Cost to Company | ||||
Land | 906 | |||
Buildings and Equipment | 3,886 | |||
Costs Capitalized Subsequent to Acquisition | 282 | |||
Cost amount carried at Close of Period | ||||
Land | 922 | |||
Buildings and Equipment | 4,152 | |||
Total | 5,074 | |||
Accumulated Depreciation | (2,110) | |||
5353 Yellowstone Road, Cheyenne, WY | ||||
Initial Cost to Company | ||||
Land | 1,915 | |||
Buildings and Equipment | 8,217 | |||
Costs Capitalized Subsequent to Acquisition | 550 | |||
Cost amount carried at Close of Period | ||||
Land | 1,950 | |||
Buildings and Equipment | 8,732 | |||
Total | 10,682 | |||
Accumulated Depreciation | (4,438) | |||
Total Real Estate Assets | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 183,100 | |||
Initial Cost to Company | ||||
Land | 628,698 | |||
Buildings and Equipment | 2,153,005 | |||
Costs Capitalized Subsequent to Acquisition | 194,018 | |||
Impairment/ Writedowns | (9,260) | |||
Cost amount carried at Close of Period | ||||
Land | 627,108 | |||
Buildings and Equipment | 2,348,613 | |||
Total | 2,975,721 | |||
Accumulated Depreciation | $ (341,848) |
SCHEDULE III REAL ESTATE AND _3
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Mortgage debt, net | $ 47,000 |
Aggregate cost for federal income tax purposes | $ 3,911,604 |
Useful life of buildings and improvements | 40 years |
Useful life of equipment | 12 years |
SCHEDULE III REAL ESTATE AND _4
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION - Carrying Amount and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Real Estate Properties | |||
Balance at the beginning of the period | $ 1,888,760 | $ 1,696,132 | $ 1,682,480 |
Additions | 1,100,138 | 194,107 | 19,622 |
Loss on asset impairment | (9,490) | ||
Disposals | (3,687) | (1,479) | (2,624) |
Reclassification of assets held for sale | (3,346) | ||
Balance at the end of the period | 2,975,721 | 1,888,760 | 1,696,132 |
Accumulated Depreciation | |||
Balance at the beginning of the period | 296,804 | 255,879 | 219,791 |
Additions | 45,315 | 42,404 | 38,987 |
Loss on asset impairment | 0 | ||
Disposals | (271) | (1,479) | (2,624) |
Reclassification of assets held for sale | (275) | ||
Balance at the end of the period | $ 341,848 | $ 296,804 | $ 255,879 |