Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 17, 2015 | Jun. 30, 2014 |
Document and Entity Information | |||
Entity Registrant Name | Government Properties Income Trust | ||
Entity Central Index Key | 1456772 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $1.40 | ||
Entity Common Stock, Shares Outstanding | 70,356,976 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real estate properties: | ||
Land | $254,008 | $243,686 |
Buildings and improvements | 1,428,472 | 1,324,876 |
Total real estate properties, at cost, gross | 1,682,480 | 1,568,562 |
Accumulated depreciation | -219,791 | -187,635 |
Total real estate properties, at cost, net | 1,462,689 | 1,380,927 |
Equity investment in Select Income REIT | 680,137 | |
Assets of discontinued operations | 13,165 | 25,997 |
Assets of property held for sale | 32,797 | |
Acquired real estate leases, net | 150,080 | 142,266 |
Cash and cash equivalents | 13,791 | 7,663 |
Restricted cash | 2,280 | 1,689 |
Rents receivable, net | 36,239 | 33,350 |
Deferred leasing costs, net | 11,450 | 11,618 |
Deferred financing costs, net | 12,782 | 3,911 |
Other assets, net | 12,205 | 25,031 |
Total assets | 2,427,615 | 1,632,452 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Unsecured revolving credit facility | 157,000 | |
Unsecured term loan | 550,000 | 350,000 |
Unsecured senior notes, net of discount | 347,423 | |
Mortgage notes payable, including premiums | 187,694 | 90,727 |
Liabilities of discontinued operations | 150 | 276 |
Liabilities of property held for sale | 343 | |
Accounts payable and accrued expenses | 26,471 | 23,216 |
Due to related persons | 2,161 | 2,474 |
Assumed real estate lease obligations, net | 15,924 | 19,084 |
Total liabilities | 1,130,166 | 642,777 |
Shareholders' equity: | ||
Common shares of beneficial interest, $.01 par value: 100,000,000 and 70,000,000 shares authorized, respectively, 70,349,227 and 54,722,018 shares issued and outstanding, respectively | 703 | 547 |
Additional paid in capital | 1,457,631 | 1,105,679 |
Cumulative net income | 248,447 | 191,913 |
Cumulative other comprehensive income | 37 | 49 |
Cumulative common distributions | -409,369 | -308,513 |
Total shareholders' equity | 1,297,449 | 989,675 |
Total liabilities and shareholders' equity | $2,427,615 | $1,632,452 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common shares of beneficial interest, par value (in dollars per share) | $0.01 | $0.01 |
Common shares of beneficial interest, shares authorized | 100,000,000 | 70,000,000 |
Common shares of beneficial interest, shares issued | 70,349,227 | 70,349,227 |
Common shares of beneficial interest, shares outstanding | 54,722,018 | 54,722,018 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||
Rental income | $251,031 | $226,910 | $203,700 |
Expenses: | |||
Real estate taxes | 28,389 | 25,710 | 22,485 |
Utility expenses | 19,369 | 17,116 | 15,767 |
Other operating expenses | 45,982 | 41,134 | 37,074 |
Depreciation and amortization | 66,593 | 55,699 | 49,070 |
Loss on asset impairment | 2,016 | ||
Acquisition related costs | 1,344 | 2,439 | 1,614 |
General and administrative | 15,809 | 12,710 | 11,924 |
Total expenses | 179,502 | 154,808 | 137,934 |
Operating income | 71,529 | 72,102 | 65,766 |
Interest and other income | 69 | 37 | 29 |
Interest expense (including net amortization of debt premiums and deferred financing fees of $1,310, $1,340 and $1,332, respectively) | -28,048 | -16,831 | -16,892 |
Loss on early extinguishment of debt | -1,307 | ||
Income from continuing operations before income tax expense and equity in earnings of investees | 42,243 | 55,308 | 48,903 |
Income tax expense | -117 | -133 | -159 |
Loss on issuance of shares by an equity investee | -53 | ||
Equity in earnings of investees | 10,963 | 334 | 316 |
Income from continuing operations | 53,036 | 55,509 | 49,060 |
Income (loss) from discontinued operations | 3,498 | -889 | 900 |
Net income | 56,534 | 54,620 | 49,960 |
Other comprehensive income (loss): | |||
Unrealized gain (loss) from investees | -12 | -50 | 22 |
Other comprehensive income (loss) | -12 | -50 | 22 |
Comprehensive income | $56,522 | $54,570 | $49,982 |
Weighted average common shares outstanding (basic) (in shares) | 61,313 | 54,606 | 48,558 |
Weighted average common shares outstanding (diluted) (in shares) | 61,399 | 54,685 | 48,644 |
Per common share amounts (basic and diluted): | |||
Income from continuing operations, basic (in dollars per share) | $0.87 | $1.02 | $1.01 |
Income from continuing operations, diluted (in dollars per share) | $0.86 | $1.02 | $1.01 |
Income from discontinued operations, basic and diluted (in dollars per share) | $0.06 | ($0.02) | $0.02 |
Net income, basic and diluted (in dollars per share) | $0.92 | $1 | $1.03 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||
Amortization of debt premiums and deferred financing fees | $1,310 | $1,340 | $1,332 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Common Shares | Additional Paid In Capital | Cumulative Net Income | Cumulative Other Comprehensive Income (Loss) | Cumulative Common Distributions | Total |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $471 | $935,438 | $87,333 | $77 | ($131,651) | $891,668 |
Increase (Decrease) in Shareholders' Equity | ||||||
Issuance of shares, net | 75 | 166,643 | 166,718 | |||
Issuance of shares, net (in shares) | 7,500,000 | |||||
Share grants | 1 | 1,901 | 1,902 | |||
Share grants (in shares) | 92,238 | |||||
Unrealized gain (loss) from investees | 22 | 22 | ||||
Net income | 49,960 | 49,960 | ||||
Distributions to common shareholders | -82,819 | -82,819 | ||||
Balance at Dec. 31, 2012 | 547 | 1,103,982 | 137,293 | 99 | -214,470 | 1,027,451 |
Balance (in shares) at Dec. 31, 2012 | 54,643,888 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Share grants | 1,697 | 1,697 | ||||
Share grants (in shares) | 78,130 | |||||
Unrealized gain (loss) from investees | -50 | -50 | ||||
Net income | 54,620 | 54,620 | ||||
Distributions to common shareholders | -94,043 | -94,043 | ||||
Balance at Dec. 31, 2013 | 547 | 1,105,679 | 191,913 | 49 | -308,513 | 989,675 |
Balance (in shares) at Dec. 31, 2013 | 54,722,018 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Issuance of shares, net | 155 | 350,558 | 350,713 | |||
Issuance of shares, net (in shares) | 15,563,559 | |||||
Share grants | 1 | 1,394 | 1,395 | |||
Share grants (in shares) | 63,650 | |||||
Unrealized gain (loss) from investees | -12 | -12 | ||||
Net income | 56,534 | 56,534 | ||||
Distributions to common shareholders | -100,856 | -100,856 | ||||
Balance at Dec. 31, 2014 | $703 | $1,457,631 | $248,447 | $37 | ($409,369) | $1,297,449 |
Balance (in shares) at Dec. 31, 2014 | 70,349,227 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $56,534 | $54,620 | $49,960 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation | 37,671 | 34,694 | 32,348 |
Net amortization of debt premiums and discount and deferred financing fees | 1,310 | 1,340 | 1,332 |
Loss on early extinguishment of debt | 1,307 | ||
Straight line rental income | -4,495 | -3,067 | -3,553 |
Amortization of acquired real estate leases | 27,713 | 21,608 | 19,507 |
Amortization of deferred leasing costs | 2,145 | 1,599 | 1,122 |
Other non-cash expenses | 2,181 | 1,268 | 1,598 |
Loss on asset impairment | 2,016 | 10,142 | 494 |
Increase in carrying value of assets held for sale | -2,344 | ||
Net gain on sale of properties | -774 | -8,168 | |
Equity in earnings of investees | -10,963 | -334 | -316 |
Loss on issuance of shares by an equity investee | 53 | ||
Distributions of earnings from equity investees | 17,046 | ||
Change in assets and liabilities: | |||
Restricted cash | -591 | -136 | 183 |
Deferred leasing costs | -3,326 | -4,279 | -5,183 |
Rents receivable | -337 | -1,565 | 3,454 |
Other assets | -419 | -1,063 | 257 |
Accounts payable and accrued expenses | 6,400 | 2,492 | -940 |
Due to related persons | -402 | -760 | 45 |
Cash provided by operating activities | 130,725 | 108,391 | 100,308 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Real estate acquisitions and deposits | -56,350 | -112,574 | -213,626 |
Real estate improvements | -21,635 | -23,252 | -18,841 |
Investment in Select Income REIT | -689,969 | ||
Investment in Affiliates Insurance Company | -825 | ||
Distributions in excess of earnings from equity investees | -3,594 | ||
Proceeds from sale of properties, net | 16,426 | 18,319 | |
Cash used in investing activities | 748,759 | 117,507 | 232,467 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of mortgage notes payable | -2,221 | -1,933 | -1,793 |
Proceeds from issuance of common shares, net | 349,787 | 166,718 | |
Proceeds from issuance of senior notes, net of discount | 347,217 | ||
Proceeds from unsecured term loan | 1,050,000 | 350,000 | |
Repayment of unsecured term loan | -850,000 | ||
Borrowings on unsecured revolving credit facility | 344,500 | 216,500 | 230,500 |
Repayments on unsecured revolving credit facility | -501,500 | -109,000 | -526,500 |
Financing fees | -12,765 | -1,964 | |
Distributions to common shareholders | -100,856 | -94,043 | -82,819 |
Cash provided by financing activities | 624,162 | 11,524 | 134,142 |
Increase in cash and cash equivalents | 6,128 | 2,408 | 1,983 |
Cash and cash equivalents at beginning of period | 7,663 | 5,255 | 3,272 |
Cash and cash equivalents at end of period | 13,791 | 7,663 | 5,255 |
Supplemental cash flow information: | |||
Interest paid | 21,334 | 15,336 | 15,469 |
Income taxes paid | 126 | 169 | 117 |
Non-cash investing activities: | |||
Real estate acquisition funded with the assumption of mortgage debt | -97,524 | ||
Non-cash financing activities: | |||
Assumption of mortgage debt | $97,524 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2014 | |
Organization | |
Organization | Note 1. Organization |
Government Properties Income Trust, or the Company, we or us, was organized as a real estate investment trust, or REIT, under Maryland law on February 17, 2009 to concentrate our former parent’s ownership of properties that were majority leased to government tenants and to expand such investments. In June 2009, we completed our initial public offering and we became a separate publicly owned company. | |
As of December 31, 2014, excluding one property ( one building) classified as discontinued operations, we owned 72 properties ( 92 buildings), or the Properties, located in 31 states and the District of Columbia containing approximately 11.0 million rentable square feet. As of December 31, 2014 we also owned 21,500,000 common shares of beneficial interest, par value $.01 per share, or approximately 35.9%, of the then outstanding common shares of Select Income REIT, or SIR. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. 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. | |
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. Our Managing Trustees are also the managing trustees of SIR. Our Managing Trustees are also owners of Reit Management & Research LLC, or RMR, which is the manager of us, 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 6 and 11 for a further discussion of our investments in AIC and SIR. | |
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 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. For properties qualifying as acquired businesses under Accounting Standards Codification 805, Business Combinations, 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 amount over the estimated life of the relationships. | |
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 $868, $1,123, and $2,056 during the years ended December 31, 2014, 2013 and 2012, 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 $26,844, $20,482, and $17,390 during the years ended December 31, 2014, 2013 and 2012, 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 $39,040 and $38,487 as of December 31, 2014 and 2013, respectively, net of accumulated amortization of $18,288 and $14,271, respectively. Capitalized below market lease values were $26,605 and $27,304 as of December 31, 2014 and 2013, respectively, net of accumulated amortization of $10,681 and $8,220, respectively. | |
The value of acquired in place leases, exclusive of the value of above market and below market acquired in place leases, were $198,157 and $167,256 as of December 31, 2014 and 2013, respectively, net of accumulated amortization of $68,829 and $49,207, 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, 2014 are estimated to be $28,601 in 2015, $26,001 in 2016, $23,734 in 2017, $19,462 in 2018, $14,413 in 2019 and $21,945 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. | |
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. | |
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 $15,401 and $13,935 at December 31, 2014 and 2013, respectively, and accumulated amortization of deferred leasing costs totaled $3,951 and $2,317 at December 31 2014 and 2013, respectively. Future amortization of deferred leasing costs to be recognized during the current terms of our existing leases as of December 31, 2014, are estimated to be $2,035 in 2015, $1,915 in 2016, $1,459 in 2017, $1,306 in 2018, $1,205 in 2019 and $3,530 thereafter. | |
Deferred Financing Fees. Deferred financing fees include issuance or assumption costs related to borrowings and we amortize those costs as interest expense over the terms of the respective loans. Deferred financing fees totaled $14,055 and $9,335 at December 31, 2014 and 2013, respectively, and accumulated amortization of deferred financing fees totaled $1,273 and $5,424 at December 31, 2014 and 2013, respectively. Future amortization of deferred financing fees to be recognized with respect to our loans as of December 31, 2014 are estimated to be $2,917 in 2015, $2,637 in 2016, $2,548 in 2017, $2,548 in 2018, $1,346 in 2019 and $786 thereafter. | |
Revenue Recognition. We recognize rental income from operating leases that contain fixed contractual rent changes on a straight line basis over the term of the lease agreements. Certain of our leases with government tenants provide the tenant the right to terminate 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. We increased rental income by $4,501, $2,739 and $3,428 to record revenue on a straight line basis during the years ended December 31, 2014, 2013 and 2012, respectively. Rents receivable include $15,017 and $10,515 of straight line rent receivables at December 31, 2014 and 2013, respectively. | |
Income Taxes. We have elected to be taxed as a REIT under the 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 (loss) represents our share of the comprehensive income (loss) of AIC and SIR. See Notes 6 and 11 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 U.S. generally accepted accounting principles, or 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 by the weighted average number of our common shares of beneficial ownership, $.01 par value, or common shares, 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. | |
Segment Reporting. We operate in two business segments: ownership of properties that are primarily leased to government tenants and our equity method investment in SIR. | |
Per_Common_Share_Amounts
Per Common Share Amounts | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Per Common Share Amounts | |||||||||||
Per Common Share Amounts | Note 3. Per 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. Unvested share awards that contain non-forfeitable rights to dividends are considered participating securities and are included in our calculation of diluted earnings per share using the more dilutive of the two-class method, or the treasury stock method. Other potentially dilutive common shares, including contingently issuable common shares under our business management agreement with RMR, if any, and the related impact on earnings, are considered when calculating diluted earnings per share (in thousands): | |||||||||||
For the year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Weighted average common shares for basic earnings per share | 61,313 | 54,606 | 48,558 | ||||||||
Effect of dilutive securities: unvested share awards | 86 | 79 | 86 | ||||||||
Weighted average common shares for diluted earnings per share | 61,399 | 54,685 | 48,644 | ||||||||
We had no anti-dilutive common share equivalents outstanding for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 4. Recent Accounting Pronouncements |
In April 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This update amends the criteria for reporting discontinued operations to, among other things, raise the threshold for disposals to qualify as discontinued operations. This update is effective for interim and annual reporting periods, beginning after December 15, 2014, with early adoption permitted, but only for disposals or classifications as held for sale which have not been reported in financial statements previously issued or available for issuance. We adopted this ASU effective July 1, 2014. As a result, the results of operations and gains or losses on the sale of properties that were not previously classified as a discontinued operation, that are disposed of or classified as held for sale in the ordinary course of business and do not meet the criteria for classification as a discontinued operation described above after July 1, 2014, are included in continuing operations in our consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. This update is effective for interim and annual reporting periods beginning after December 15, 2016. We are currently in the process of evaluating the impact, if any, the adoption of this ASU will have on our consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The update requires an entity to evaluate whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the financial statements are available to be issued when applicable) and to provide related footnote disclosures in certain circumstances. The update is effective for the annual reporting periods beginning after December 15, 2015, and for annual and interim periods thereafter with early adoption permitted. The implementation of this update is not expected to result in any significant changes to the disclosures in our consolidated financial statements. | |
Real_Estate_Properties
Real Estate Properties | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Real Estate Properties | ||||||||||||||||||||||||||||||
Real Estate Properties | Note 5. Real Estate Properties | |||||||||||||||||||||||||||||
As of December 31, 2014, we owned 72 properties (92 buildings), with an undepreciated carrying value of $1,712,776 excluding one property (one building) classified as discontinued operations and including one property (one building) held for sale and included in continuing operations. We generally lease space in our properties on a gross lease or modified gross lease basis pursuant to fixed term operating leases expiring between 2015 and 2029. Certain of our government tenants have the right to terminate their leases before the stated term of their leases expire. 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, 2014, we entered into 50 leases for 632,376 rentable square feet for a weighted (by revenue) average lease term of 5.4 years and we made commitments for approximately $12,416 of leasing related costs. We have unspent leasing related obligations of approximately $7,545 as of December 31, 2014. | ||||||||||||||||||||||||||||||
Our future minimum lease payments related to our properties, excluding one property classified as discontinued operations 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, 2014 are as follows: | ||||||||||||||||||||||||||||||
2014 | $ | 222,845 | ||||||||||||||||||||||||||||
2015 | 207,019 | |||||||||||||||||||||||||||||
2016 | 180,634 | |||||||||||||||||||||||||||||
2017 | 151,512 | |||||||||||||||||||||||||||||
2018 | 123,106 | |||||||||||||||||||||||||||||
Thereafter | 262,559 | |||||||||||||||||||||||||||||
$ | 1,147,675 | |||||||||||||||||||||||||||||
As of December 31, 2014, excluding one property classified as discontinued operations, government tenants who currently represent approximately 5.0% of our total future minimum lease payments have currently exercisable rights to terminate their leases before the stated terms of their leases expire. In 2015, 2016, 2017, 2018, 2019, 2020, 2022 and 2023, early termination rights become exercisable by other government tenants who currently represent an additional approximately 1.8%, 5.9%, 3.1%, 1.6%, 9.4%, 6.7%, 1.5% and 2.2% of our total future minimum lease payments, respectively. In addition as of December 31, 2014, 13 of our government tenants have the currently exercisable right to terminate their leases if their respective legislature or other funding authority does not appropriate the funding necessary for the government tenant to meet its lease obligations. These 13 tenants represent approximately 14.1% of our total future minimum lease payments as of December 31, 2014. | ||||||||||||||||||||||||||||||
Acquisition Activities | ||||||||||||||||||||||||||||||
During the year ended December 31, 2014, we acquired four office properties (five buildings) for an aggregate purchase price of $167,525, including the assumption of $97,524 of mortgage debt and excluding acquisition costs. We allocated the purchase prices of these acquisitions based on the estimated fair values of the acquired assets and assumed liabilities as follows: | ||||||||||||||||||||||||||||||
Number | Premium | |||||||||||||||||||||||||||||
of | Buildings | Acquired | Other | on | ||||||||||||||||||||||||||
Acquisition | Properties/ | Square | Purchase | and | Acquired | Lease | Assumed | Assumed | ||||||||||||||||||||||
Date | Location | Type | Buildings | Feet | Price(1) | Land | Improvements | Leases | Obligations | Liabilities | Debt | |||||||||||||||||||
March 2014 | Fairfax, VA | Office | 1-Jan | 83,130 | $ | 19,775 | $ | 2,964 | $ | 12,840 | $ | 3,971 | $ | — | $ | -233 | $ | — | ||||||||||||
May 2014 | Richmond, VA | Office | 1-Jan | 173,932 | 22,500 | 2,614 | 15,930 | 4,003 | -47 | — | — | |||||||||||||||||||
May 2014 | Reston, VA | Office | 2-Jan | 406,388 | 112,250 | 9,066 | 78,658 | 28,071 | -398 | -93 | -3,147 | |||||||||||||||||||
September 2014 | Phoenix, AZ | Office | 1-Jan | 66,743 | 13,000 | 1,917 | 7,416 | 3,667 | — | — | — | |||||||||||||||||||
5-Apr | 730,193 | $ | 167,525 | $ | 16,561 | $ | 114,844 | $ | 39,712 | $ | -445 | $ | -326 | $ | -3,147 | |||||||||||||||
-1 | Purchase price excludes acquisition related costs. | |||||||||||||||||||||||||||||
In March 2014, we acquired an office property (one building) located in Fairfax, VA with 83,130 rentable square feet. This property is 100% leased to the U.S. Government. The purchase price was $19,775, including the assumption of $14,524 of mortgage debt and excluding acquisition costs. | ||||||||||||||||||||||||||||||
In May 2014, we acquired an office property (one building) located in Richmond, VA with 173,932 rentable square feet. This property is 94.6% leased to the Commonwealth of Virginia and occupied by six agencies. The purchase price was $22,500, excluding acquisition costs. | ||||||||||||||||||||||||||||||
Also in May 2014, we acquired an office property (two buildings) located in Reston, VA with a total of 406,388 rentable square feet. This property is 100% leased to the U.S. Government. The purchase price was $112,250, including the assumption of $83,000 of mortgage debt and excluding acquisition costs. | ||||||||||||||||||||||||||||||
In September 2014, we acquired an office property (one building) located in Phoenix, AZ with 66,743 rentable square feet. This property is 100% leased to the State of Arizona and occupied by Northern Arizona University. The purchase price was $13,000, excluding acquisition costs. | ||||||||||||||||||||||||||||||
Disposition Activities – Continuing Operations | ||||||||||||||||||||||||||||||
In August 2014, a U.S. Government tenant notified us that it intended to exercise its option to acquire the office property (one building) it leased from us located in Riverdale, MD with 337,500 rentable square feet and a net book value of $30,448 as of December 31, 2014, after recording a $2,016 loss on asset impairment during the year ended December 31, 2014. The sale of this property was completed in February 2015 and the sale price was $30,600, excluding closing costs. As of December 31, 2014, we have classified this property as held for sale but have not classified the results of operations for this property as discontinued operations in our consolidated financial statements pursuant to our early adoption of ASU No. 2014-08 as described in Note 2. See Note 9 regarding the fair value of our assets and liabilities. Summarized balance sheet information for the property classified as held for sale is as follows: | ||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||
Real estate properties, net | $ | 29,896 | ||||||||||||||||||||||||||||
Rents receivable | 605 | |||||||||||||||||||||||||||||
Other assets | 2,296 | |||||||||||||||||||||||||||||
Assets of property held for sale | $ | 32,797 | ||||||||||||||||||||||||||||
Other liabilities | $ | 343 | ||||||||||||||||||||||||||||
Liabilities of property held for sale | $ | 343 | ||||||||||||||||||||||||||||
Disposition Activities – Discontinued Operations | ||||||||||||||||||||||||||||||
During the year ended December 31, 2013, we began marketing for sale an office property (one building) located in Phoenix, AZ with 97,145 rentable square feet and recognized a loss on asset impairment of $8,344 to reduce the carrying value of this asset to its then estimated fair value of $2,300. During the three months ended March 31, 2014, we increased the carrying value of this asset by $2,344 to its then estimated fair value of $4,644. In February 2014, we sold this property for $5,000, excluding closing costs. We recognized no gain or loss on this sale. | ||||||||||||||||||||||||||||||
In July 2014, we entered into an agreement to sell an office property (one building) located in San Diego, CA with 94,272 rentable square feet. In September 2014, we sold this property for $12,100, excluding closing costs. We recognized a gain on sale of $774 during the year ended December 31, 2014. | ||||||||||||||||||||||||||||||
In April 2014, we entered into an agreement to sell an office property (one building) located in Falls Church, VA with 164,746 rentable square feet and a net book value of $12,282 at December 31, 2014. The contract sales price is $16,500, excluding closing costs. The closing of this sale is subject to conditions, including the purchaser obtaining certain zoning entitlements, and is currently expected to occur in 2015. We can provide no assurance that the sale of this property will occur. See Note 9 regarding the fair value of our assets and liabilities. | ||||||||||||||||||||||||||||||
Results of operations for the two properties (two buildings) we sold in February 2013 and March 2013, the two properties (two buildings) we sold in February 2014 and September 2014 and one of the properties (one building) held for sale at December 31, 2014, which was held for sale prior to our early adoption of ASU No. 2014-08, are classified as discontinued operations in our consolidated financial statements. Summarized balance sheet and income statement information for the properties classified as discontinued operations is as follows: | ||||||||||||||||||||||||||||||
Balance Sheets: | ||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
Real estate properties, net | $ | 12,260 | $ | 25,574 | ||||||||||||||||||||||||||
Rents receivable | 782 | 381 | ||||||||||||||||||||||||||||
Other assets | 123 | 42 | ||||||||||||||||||||||||||||
Assets of discontinued operations | $ | 13,165 | $ | 25,997 | ||||||||||||||||||||||||||
Other liabilities | $ | 150 | $ | 276 | ||||||||||||||||||||||||||
Liabilities of discontinued operations | $ | 150 | $ | 276 | ||||||||||||||||||||||||||
Statements of Operations: | ||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Rental income | $ | 1,673 | $ | 4,580 | $ | 7,376 | ||||||||||||||||||||||||
Real estate taxes | -427 | -678 | -928 | |||||||||||||||||||||||||||
Utility expenses | -226 | -539 | -1,043 | |||||||||||||||||||||||||||
Other operating expenses | -459 | -966 | -1,484 | |||||||||||||||||||||||||||
Depreciation and amortization | — | -1,025 | -2,096 | |||||||||||||||||||||||||||
General and administrative | -181 | -287 | -431 | |||||||||||||||||||||||||||
Loss on asset impairment | — | -10,142 | -494 | |||||||||||||||||||||||||||
Increase in carrying value of asset held for sale | 2,344 | — | — | |||||||||||||||||||||||||||
Net gain on sale of properties | 774 | 8,168 | — | |||||||||||||||||||||||||||
Income (loss) from discontinued operations | $ | 3,498 | $ | -889 | $ | 900 | ||||||||||||||||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Related Party Transactions | ||||
Related Party Transactions | Note 6. Related Person Transactions | |||
We have adopted written Governance Guidelines that describe the consideration and approval of any related person transactions. Under these Governance Guidelines, we may not enter into any transaction in which any Trustee or executive officer, any member of the immediate family of any Trustee or executive officer or any other related person, has or will have a direct or indirect material interest unless that transaction has been disclosed or made known to our Board of Trustees and our Board of Trustees reviews and approves or ratifies the transaction by the affirmative vote of a majority of the disinterested Trustees, even if the disinterested Trustees constitute less than a quorum. If there are no disinterested Trustees, the transaction must be reviewed, authorized and approved or ratified by both (i) the affirmative vote of a majority of our Board of Trustees and (ii) the affirmative vote of a majority of our Independent Trustees. In determining whether to approve or ratify a transaction, our Board of Trustees, or disinterested Trustees or Independent Trustees, as the case may be, also act in accordance with any applicable provisions of our declaration of trust and bylaws, consider all of the relevant facts and circumstances and approve only those transactions that they determine are fair and reasonable to us and our shareholders. All related person transactions described below were reviewed and approved or ratified by a majority of the disinterested Trustees or otherwise in accordance with our policies, declaration of trust and bylaws, each as described above. In the case of transactions with us by RMR employees (other than our Trustees and executive officers) subject to our Code of Business Conduct and Ethics, the employee must seek approval from an executive officer who has no interest in the matter for which approval is being requested. Copies of our Governance Guidelines and Code of Business Conduct and Ethics are available on our website, www.govreit.com. | ||||
RMR: We have no employees. The personnel and various services we require to operate our business are provided to us by RMR. We have two agreements with RMR to provide management and administrative services to us: (i) a business management agreement, which relates to our business generally, and (ii) a property management agreement, which relates to our property level operations. | ||||
One of our Managing Trustees, Mr. Barry Portnoy, is Chairman, majority owner and an employee of RMR. Our other Managing Trustee, Mr. Adam Portnoy, is the son of Mr. Barry Portnoy, and an owner, President, Chief Executive Officer and a director of RMR. Each of our executive officers is also an officer of RMR. Our Independent Trustees also serve as independent directors or independent trustees of other companies to which RMR or its affiliates provide management services. Mr. Barry Portnoy serves as a managing director or managing trustee of all of those companies and Mr. Adam Portnoy serves as a managing trustee of a majority of those companies. In addition, officers of RMR serve as our officers and officers of other companies to which RMR or its affiliates provide management services. | ||||
Our Board of Trustees has given our Compensation Committee, which is comprised exclusively of our Independent Trustees, authority to act on our behalf with respect to our management agreements with RMR. Our Governance Guidelines and the charter of our Compensation Committee together require the committee to annually review the terms of these agreements, evaluate RMR's performance under the agreements and determine whether to renew, amend or terminate the management agreements. | ||||
In 2013, our Compensation Committee retained FTI Consulting, Inc., a nationally recognized compensation consultant experienced in REIT compensation programs, to assist the committee in developing the terms of the incentive fee payable to RMR under our business management agreement with RMR beginning in 2014. In connection with retaining this consultant, our Compensation Committee determined that the consultant did not have any conflicts of interest which would prevent the consultant from advising the committee. | ||||
On December 23, 2013, we and RMR amended and restated our business management agreement, effective with respect to services performed on or after January 1, 2014. Under our business management agreement as so amended and restated: | ||||
· | The annual amount of the base management fee to be paid to RMR by us for each applicable period is equal to the lesser of: | |||
o | the sum of (a) 0.5% of the average aggregate historical cost of our real estate assets acquired from a REIT to which RMR provided business management or property management services, or the Transferred Assets, immediately prior to the contribution, sale or other transfer of such property to us, 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 historical cost of our real estate investments excluding the Transferred Assets exceeding $250,000; and | |||
o | the sum of (a) 0.7% of the average closing price per share of our common shares on the New York Stock Exchange, or the NYSE, 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 noncash reserves. | ||||
· | Although the fee calculation is stated in annual percentages, the base management fee is paid monthly to RMR, 90% in cash and 10% in our common shares, which are fully-vested when issued. The number of our common shares to be issued in payment of the base management fee for each month equals the value of 10% of the total base management fee for that month divided by the average daily closing price of our common shares during that month. | |||
· | The incentive management fee which may be earned by RMR for an annual period is an amount, subject to a cap based on the value of our outstanding common shares, equal to 12% of the product of (a) our equity market capitalization on the last trading day on the year immediately prior to the relevant measurement period and (b) the amount (expressed as a percentage) by which the total returns per share realized by the holders of our common shares (i.e., share price appreciation plus dividends) exceeds the total shareholder return of the SNL US REIT Equity Index (in each case subject to certain adjustments) for the relevant measurement period. The measurement periods are generally three-year periods ending with the year for which the incentive management fee is being calculated, with shorter periods applicable in the case of the calculation of the incentive management fee for 2014 ( one year) and 2015 ( two years). | |||
· | The incentive management fee is payable in our common shares, with one-third of our common shares issued in payment of an incentive management fee vested on the date of issuance, and the remaining two-thirds vesting thereafter in two equal annual installments. If the issuance of common shares in payment of a portion of the base management fee or incentive management fee would be limited by applicable law and regulations, such portion of the applicable fee is instead paid in cash. All common shares issued in payment of the incentive management fee shall be fully vested upon termination of the business management agreement, subject to certain exceptions. In addition, RMR may, in certain circumstances, be required to return to us or forfeit some or all of the common shares paid or payable to it in payment of the incentive management fee. | |||
· | RMR and certain eligible transferees of our common shares issued in payment of the base management fee or incentive management fee are entitled to demand registration rights, exercisable not more frequently than twice per year, and to "piggy-back" registration rights, with certain expenses to be paid by us. We and applicable selling shareholders also have agreed to indemnify each other (and their officers, trustees, directors and controlling persons) against certain liabilities, including liabilities under the Securities Act of 1933, as amended, or the Securities Act, in connection with any such registration. | |||
The amended and restated terms of our business management agreement described above were approved by our Compensation Committee, which is comprised solely of our Independent Trustees, and the terms of the incentive fee were developed by our Compensation Committee in consultation with FTI Consulting, Inc., an independent compensation consultant. | ||||
For 2013 and 2012, our business management agreement provided for the base business management fee to be paid to RMR at an annual rate equal to the sum of (a) 0.5% of the historical cost of the Transferred Assets, plus (b) with respect to other properties we acquired excluding the Transferred Assets, 0.7% of our aggregate cost of those properties up to and including $250,000, and 0.5% thereafter. In addition, for 2013 and 2012, our business management agreement provided for RMR to be paid an incentive fee equal to 15% of the product of (i) the weighted average of our common shares outstanding on a fully diluted basis during a fiscal year and (ii) the excess, if any, of the FFO Per Share, as defined in the business management agreement, for such fiscal year over the FFO Per Share for the preceding fiscal year. This incentive fee was payable in common shares and it was subject to a cap on the value of the incentive fee being no greater than $0.02 per share of our total shares outstanding. | ||||
Pursuant to our business management agreement with RMR, we recognized business management fees of $10,226, $9,341 and $9,077 for 2014, 2013 and 2012, respectively. These amounts are included in general and administrative expenses in our consolidated financial statements. In accordance with the terms of our business management agreement, we issued, in aggregate, 42,442 of our common shares to RMR as payment for a portion of the base business management fee we recognized for 2014. In March 2013 and 2012, we issued 20,230 and 39,141 of our common shares to RMR for the incentive fees for 2012 and 2011, respectively, pursuant to our business management agreement. No incentive fee was payable to RMR under our business management agreement for 2014 or 2013. | ||||
Our property management agreement with RMR provides for management fees equal to 3.0% of gross collected rents and construction supervision fees equal to 5.0% of construction costs. The aggregate property management and construction supervision fees we recognized were $8,203, $7,877 and $7,018 for 2014, 2013 and 2012, respectively. These amounts are included in operating expenses or have been capitalized, as appropriate, in our consolidated financial statements. | ||||
RMR also provides internal audit services to us in return for our share of the total internal audit costs incurred by RMR for us and other publicly owned companies managed by RMR and its affiliates, which amounts are subject to approval by our Compensation Committee. Our Audit Committee appoints our Director of Internal Audit. Our share of RMR's costs of providing this internal audit function was approximately $286, $203 and $193 for 2014, 2013 and 2012, respectively, which amounts are included in general and administrative expenses in our consolidated financial statements. These allocated costs are in addition to the business and property management fees we paid to RMR. | ||||
We are generally responsible for all of our operating expenses, including certain expenses incurred by RMR on our behalf. We are generally not responsible for payment of RMR's employment, office or administration expenses incurred to provide management services to us, except for the employment and related expenses of RMR employees assigned to work exclusively or partly at our owned properties, our share of the wages, benefits and other related costs of centralized accounting personnel and our share of the staff employed by RMR who perform our internal audit function. Pursuant to our business management agreement, RMR 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 into agreements with RMR and other companies to which RMR provides management services for the purpose of obtaining more favorable terms from such vendors and suppliers. | ||||
The current terms of both our business management agreement with RMR and our property management agreement with RMR end on December 31, 2015 and automatically renew for successive one year terms unless we or RMR gives notice of non-renewal before the end of an applicable term. On May 9, 2014, we and RMR entered into amendments to our business management agreement and property management agreement, which were approved by our Compensation Committee, comprised solely of our Independent Trustees. As amended, RMR may terminate the agreements upon 120 days’ written notice. Prior to these amendments, RMR could terminate the agreements upon 60 days’ written notice and could also terminate the property management agreement upon five business days’ notice if we underwent a change of control. Both prior to and after giving effect to these amendments, we have the right to terminate the agreements upon 60 days’ written notice, subject to approval by a majority vote of our Independent Trustees. As amended, if we terminate or elect not to renew the business management agreement other than for cause, as defined, we are obligated to pay RMR a termination fee equal to 2.75 times the sum of the annual base management fee and the annual internal audit services expense, which amounts are based on averages during the 24 consecutive calendar months prior to the date of notice of nonrenewal or termination. In addition, if we terminate or elect not to renew the property management agreement other than for cause, as defined, within 12 months prior to or following our giving notice of termination or non-renewal of the business management agreement other than for cause, we are obligated to pay RMR a termination fee equal to 12 times the average monthly property management fee for the six months prior to the effective date of the nonrenewal or termination. The amendments provide for certain proportional adjustments to the termination fees if we merge with another REIT to which RMR is providing management services or if we spin-off a subsidiary of ours to which we contributed properties and to which RMR is providing management services both at the time of the spin-off and on the date of the expiration or termination of the agreement. Also, as amended, RMR agrees to provide certain transition services to us for 120 days following an applicable termination by us or notice of termination by RMR. Both the business management agreement with RMR and the property management agreement with RMR include arbitration provisions for the resolution of disputes. | ||||
Under our business management agreement with RMR, we acknowledge that RMR 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. Previously our business management agreement had provided that, with certain exceptions, if we determined to offer for sale or other disposition any real property that, at such time, is of a type within the investment focus of another REIT to which RMR provides management services, we would first offer that property for purchase or disposition to that REIT and negotiate in good faith for such purchase or disposition. This right of first offer provision was eliminated when the business management agreement was amended and restated on December 23, 2013. | ||||
RMR leases from us approximately 2,433 square feet of office space for two of its regional offices. We earned approximately $61, $31 and $32 in rental income from RMR for leased office space for 2014, 2013 and 2012, respectively, not all of which was leased to RMR for the entire three year period. Our office space leases with RMR are terminable by RMR if our management agreements with RMR are terminated. We may enter additional leases with RMR for its regional offices in the future. | ||||
Under our equity compensation plan adopted in 2009, or the 2009 Plan, we grant restricted shares to certain employees of RMR, some of whom are our officers. We granted a total of 51,150 restricted shares with an aggregate value of $1,191, 48,350 restricted shares with an aggregate value of $1,142, and 43,917 restricted shares with an aggregate value of $1,043 to such persons in 2014, 2013 and 2012, respectively, based upon the closing price of our common shares on the NYSE on the dates of grants. One fifth of those restricted shares vested on the grant dates and one fifth vests on each of the next four anniversaries of the grant dates. These share grants to RMR employees are in addition to the fees we pay to RMR. On occasion, we have entered into arrangements with former employees of RMR in connection with the termination of their employment with RMR, providing for the acceleration of vesting of restricted shares previously granted to them under the 2009 Plan. Additionally, each of our President and Chief Operating Officer and Treasurer and Chief Financial Officer received grants of restricted shares of other companies to which RMR provides management services in their capacities as officers of RMR. | ||||
On July 8, 2014, we and RMR entered into an agreement with Equity Commonwealth (formerly known as CommonWealth REIT), or EQC, pursuant to which we and RMR purchased shares of SIR from EQC on July 9, 2014. For more information regarding this transaction, see below under “— EQC” and “— SIR”. | ||||
EQC: We were formed as a 100% owned subsidiary of EQC. In 2009, we completed our IPO, pursuant to which we ceased to be a majority owned subsidiary of EQC. One of our Managing Trustees, Mr. Barry Portnoy, was a managing trustee of EQC until March 25, 2014. Our other Managing Trustee, Mr. Adam Portnoy, was the president of EQC until May 23, 2014 and a managing trustee of EQC until March 25, 2014. RMR provided business and property management services to EQC until EQC terminated its business and property management agreements with RMR on September 30, 2014. After that termination, RMR’s services to EQC have been limited to management services in respect of EQC’s Australian assets and certain transition services. | ||||
On March 15, 2013, EQC sold all 9,950,000 of our common shares it owned in a public offering. In connection with this public offering, on March 11, 2013, we entered into a registration agreement with EQC under which EQC agreed to pay all expenses incurred by us relating to the registration and sale of our common shares owned by EQC in the offering, pursuant to which EQC paid us $310. In addition, under the registration agreement, EQC agreed to indemnify us and our officers, Trustees and controlling persons, and we agreed to indemnify EQC and its officers, trustees and controlling persons, against certain liabilities related to the public offering, including liabilities under the Securities Act. | ||||
On July 8, 2014, we and RMR entered into a stock purchase agreement, or the purchase agreement, with EQC, pursuant to which, on July 9, 2014, we acquired from EQC 21,500,000 common shares of SIR, and RMR acquired from EQC 500,000 SIR common shares. Our cash purchase price was equal to approximately $677,500, or $31.51 per share, plus approximately $11,300, or $0.53 per share, of accrued dividends as defined in the purchase agreement, for a total of approximately $688,800, before acquisition related costs. RMR purchased its 500,000 SIR common shares on the same terms, including for the same per share amounts that we paid. Under the purchase agreement, in the event that we or RMR consummates any sale of SIR common shares prior to July 9, 2015 and the price per share paid by the purchaser is greater than $31.51, we or RMR, as applicable, are required to pay to EQC an amount equal to 50% of the product of (i) the number of SIR common shares sold in the transaction times (ii) the excess of (x) the price per share paid by the purchaser and (y) $31.51. The foregoing requirement applies to any SIR common shares we or RMR own. In addition, we and RMR agreed, among other things, to indemnify EQC for certain claims related to the acquisition. In connection with the indemnity, we and RMR entered into an allocation agreement with regard to our respective liabilities in the event of a claim for indemnification. As a result of this purchase, we are SIR's largest shareholder owning approximately 35.9% and 24.3% of SIR’s outstanding common shares as of December 31, 2014 and February 17, 2015, respectively. Additionally, in connection with this purchase, and in light of the fact that we would own greater than 10% of SIR’s outstanding common shares, SIR exempted us and our affiliates (as defined in the Maryland General Corporation Law), including, without limitation, RMR, from being “interested stockholders” under the Maryland Business Combination Act. | ||||
On July 23, 2014, we and EQC agreed to terminate the provisions of a transaction agreement that we entered in 2009 with EQC in connection with our IPO. The agreement had placed restrictions on both our and EQC’s investments in real property and provided certain rights of first refusal with respect to properties which we or EQC determined to divest. | ||||
We do not consider EQC to be an affiliate of us. | ||||
SIR: We are SIR's largest shareholder. Concurrently with the execution and delivery of the merger agreement, or the Merger Agreement, for the acquisition by SIR of Cole Corporate Income Trust, Inc., a Maryland corporation, or CCIT, we entered into a voting and standstill agreement with CCIT and American Realty Capital Properties, Inc., a Maryland corporation and parent of the advisor of CCIT, or ARCP, or the Voting Agreement. SIR’s acquisition of CCIT pursuant to the Merger Agreement was completed on January 29, 2015. Pursuant to the Voting Agreement, we agreed to vote all of the SIR common shares beneficially owned by us in favor of the issuance of SIR common shares to the stockholders of CCIT as contemplated by the Merger Agreement, upon and subject to the terms and conditions of the Voting Agreement and the Merger Agreement. The Voting Agreement also contains standstill provisions pursuant to which ARCP has agreed, among other things, not to make unsolicited proposals to acquire us or SIR for a period of 36 months. Concurrently with our entering into the Voting Agreement, RMR, which also provides management services to SIR, and Messrs. Barry Portnoy and Adam Portnoy, RMR’s principals, our Managing Trustees and managing trustees of SIR, also entered into a voting and standstill agreement on terms and conditions substantially similar to the Voting Agreement that also includes a standstill in respect of Senior Housing Properties Trust, a Maryland REIT, or SNH. One of our Independent Trustees also serves as an independent trustee of SIR, two of our Independent Trustees also serve as independent trustees of SNH and our President and Chief Operating Officer also serves as the president and chief operating officer of SIR. | ||||
AIC: We, RMR, SIR and four other companies to which RMR provides management services currently own AIC, an Indiana insurance company, and are parties to an amended and restated shareholders agreement regarding AIC. On May 9, 2014, as a result of a change in control of EQC, as defined in the amended and restated shareholders agreement, we and the other AIC shareholders purchased pro rata the AIC shares EQC owned in accordance with the terms of that agreement. Pursuant to that purchase, we purchased 2,857 AIC shares from EQC for $825. Following these purchases, we and the other remaining six AIC shareholders each own approximately 14.3% of AIC. As of December 31, 2014, we have invested $6,019 in AIC since we became an equity owner of AIC in 2009. | ||||
All of our Trustees and most of the trustees and directors of the other AIC shareholders currently serve on the board of directors of AIC. RMR provides management and administrative services to AIC pursuant to a management and administrative services agreement with AIC. Our Governance Guidelines provide that any material transaction between us and AIC shall be reviewed, authorized and approved or ratified by the affirmative votes of both a majority of our Board of Trustees and a majority of our Independent Trustees. The shareholders agreement among us, the other shareholders of AIC and AIC includes arbitration provisions for the resolution of disputes. | ||||
In 2012 and 2013, we and the other shareholders of AIC purchased a one-year property insurance policy providing $500,000 of coverage pursuant to an insurance program arranged by AIC and with respect to which AIC is a reinsurer of certain coverage amounts. Our annual premium for this property insurance was $1,161 and $410 in 2013 and 2012, respectively, before adjustments made for acquisitions or dispositions we made during those periods. In June 2014, we and the other shareholders of AIC renewed our participation in this program. In connection with that renewal, we purchased a one-year property insurance policy providing $500,000 of coverage, with respect to which AIC is a reinsurer of certain coverage amounts. We paid AIC a premium, including taxes and fees, of approximately $526 in connection with that policy, which amount may be adjusted from time to time as we acquire or dispose of properties that are included in the policy. Although we own less than 20% of AIC, we use the equity method to account for this investment because we believe that we have significant influence over AIC as all of our Trustees are also directors of AIC. Our investment in AIC had a carrying value of $6,946, $6,031 and $5,747 as of December 31, 2014, 2013 and 2012, respectively, which amounts are included in other assets on our consolidated balance sheets. We recognized income of $87, $334 and $316 related to our investment in AIC for 2014, 2013 and 2012, respectively. | ||||
We periodically consider the possibilities for expanding our insurance relationships with AIC to include other types of insurance and may in the future participate in additional insurance offerings AIC may provide or arrange. We may invest additional amounts in AIC in the future if the expansion of this insurance business requires additional capital, but we are not obligated to do so. By participating in this insurance business with RMR and the other companies to which RMR provides management services, we expect that we may benefit financially by possibly reducing our insurance expenses or by realizing our pro rata share of any profits of this insurance business. | ||||
Directors' and Officers' Liability Insurance: In July 2013, we, RMR and five companies to which RMR then provided management services purchased a combined directors' and officers' liability insurance policy providing $10,000 in aggregate primary non-indemnifiable coverage and $5,000 in aggregate excess coverage and we also purchased from an unrelated third party insurer a separate directors' and officers' liability insurance policy providing $5,000 in coverage. We paid aggregate premiums of approximately $333 for these policies. In June 2014, we, RMR and four other companies to which RMR provides management services extended our and their combined directors’ and officers’ liability insurance policy, and we extended our separate directors’ and officers’ liability insurance policy, in each case for an interim period. We paid aggregate premiums of approximately $50 for these extensions. In September 2014, we purchased a two year combined directors' and officers' insurance policy with RMR and five other companies to which RMR provides management services that provides $10,000 in aggregate primary coverage, including certain errors and omission coverage. At that time, we also purchased separate additional one year directors' and officers' liability insurance policies that provide $20,000 of aggregate excess coverage plus $5,000 of excess non-indemnifiable coverage. The total premium payable by us for these policies purchased in September 2014 was approximately $479. | ||||
Concentration
Concentration | 12 Months Ended |
Dec. 31, 2014 | |
Concentration | |
Concentration | Note 7. Concentration |
Tenant and Credit Concentration | |
We define annualized rental income as the annualized contractual base rents from our tenants pursuant to our lease agreements with them 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, 12 state governments and the United Nations combined were responsible for approximately 93.0%, 92.6% and 93.8% of our annualized rental income, excluding properties classified as discontinued operations, as of December 31, 2014, 2013 and 2012, respectively. The U.S. Government is our largest tenant by annualized rental income and was responsible for approximately 69.0%, 69.0% and 71.0% of our annualized rental income, excluding properties classified as discontinued operations, as of December 31, 2014, 2013 and 2012, respectively. | |
Geographic Concentration | |
At December 31, 2014, our 72 properties (92 buildings), excluding one property classified as discontinued operations, were located in 31 states and the District of Columbia. Properties located in Maryland, California, the District of Columbia, Virginia, Georgia, New York and Massachusetts were responsible for approximately 11.2%, 11.0%, 9.9%, 9.8%, 8.9%, 8.2% and 5.5% of our annualized rental income as of December 31, 2014, respectively. | |
Indebtedness
Indebtedness | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Indebtedness | |||||||
Indebtedness | Note 8. Indebtedness | ||||||
At December 31, 2014 and 2013, our outstanding indebtedness consisted of the following: | |||||||
December 31, | December 31, | ||||||
2014 | 2013 | ||||||
Unsecured revolving credit facility | $ | — | $ | 157,000 | |||
Unsecured term loan, due in 2017 | — | 350,000 | |||||
Unsecured term loan, due in 2020 | 300,000 | — | |||||
Unsecured term loan, due in 2022 | 250,000 | — | |||||
Senior unsecured notes, 3.75% interest rate, including unamortized discount of $2,577, due in 2019 | 347,423 | — | |||||
Mortgage note payable, 5.55% interest rate, including unamortized premium of $2,167, due in 2016(1) | 85,167 | — | |||||
Mortgage note payable, 5.73% interest rate, including unamortized premium of $177, due in 2015(1) | 47,418 | 48,377 | |||||
Mortgage note payable, 6.21% interest rate, due in 2016(1) | 23,833 | 24,147 | |||||
Mortgage note payable, 5.88% interest rate, due in 2021(1) | 14,374 | — | |||||
Mortgage note payable, 7.00% interest rate, including unamortized premium of $605, due in 2019(1) | 9,563 | 9,919 | |||||
Mortgage note payable, 8.15% interest rate, including unamortized premium of $398, due in 2021(1) | 7,339 | 8,284 | |||||
$ | 1,085,117 | $ | 597,727 | ||||
-1 | We assumed these mortgages in connection with our acquisitions of certain 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. | ||||||
In March 2014, we assumed a mortgage with a balance of $14,524 in connection with a property acquisition. This mortgage note is secured by the acquired property, bears interest at 5.88% per annum and is amortized on a 30 year schedule (which commenced upon the original issuance of the note by its former obligor) until maturity in August 2021. We did not record a premium or discount on this assumed debt because we believed the interest rate payable under this mortgage was equal to the rate we would have had to pay for debt with the same maturity at the time we assumed this obligation. | |||||||
In May 2014, we assumed a mortgage with a balance of $83,000 in connection with a property acquisition. This mortgage note is secured by the acquired property, bears interest at 5.55% per annum and monthly payments of interest only are due until maturity in April 2016. We recorded a $3,147 premium on this assumed debt, which reduced its effective interest rate to 3.50%, because we believed the interest rate payable under this mortgage was above the rate we would have had to pay for debt with the same maturity at the time we assumed this obligation. | |||||||
On November 21, 2014, we replaced our then existing $550,000 unsecured revolving credit facility and $350,000 unsecured term loan with $1,300,000 of new credit facilities, consisting of our $750,000 unsecured revolving credit facility, a $250,000 unsecured term loan and a $300,000 unsecured term loan. We recognized a loss on early extinguishment of debt of $766 during the year ended December 31, 2014 due to the write off of unamortized deferred financing fees related to the repayment and termination of our $550,000 unsecured revolving credit facility and our $350,000 unsecured term loan. | |||||||
The maturity date of our revolving credit facility is January 31, 2019 and, subject to the payment of an extension fee and meeting certain other conditions, includes an option for us to extend the stated maturity date of our revolving credit facility by one year to January 31, 2020. Borrowings under our revolving credit facility bear interest at a rate of LIBOR plus a premium, which was 125 basis points as of December 31, 2014. We also pay a facility fee of 25 basis points per annum on the total amount of lending commitments under our revolving credit facility. Both the interest rate premium and the facility fee are subject to adjustment based upon changes to our credit ratings. As of December 31, 2014, the interest rate payable on borrowings under our revolving credit facility was 1.4%. We had no borrowings outstanding under our new credit facility for the period from November 21, 2014, the date we entered into the credit agreement, to December 31, 2014, and we have $750,000 available under our new credit facility as of December 31, 2014. | |||||||
The weighted average annual interest rate for borrowings under our then existing $550,000 unsecured revolving credit facility was 1.7%, 1.7% and 1.8%, respectively, for the period January 1, 2014 to November 20, 2014 and the years ended December 31, 2013 and 2012, respectively. | |||||||
Our $300,000 unsecured term loan, which matures on March 31, 2020, is prepayable without penalty at any time. The amount outstanding under our $300,000 term loan bears interest at LIBOR plus a premium, which was 140 basis points as of December 31, 2014. The interest rate premium is subject to adjustment based upon changes to our credit ratings. As of December 31, 2014, the interest rate for the amount outstanding under our $300,000 term loan was 1.6%. The weighted average interest rate under our $300,000 term loan was 1.9% for the period from November 21, 2014, the date we entered into the credit agreement, to December 31, 2014. | |||||||
Our $250,000 unsecured term loan, which matures on March 31, 2022, is prepayable at any time. If our $250,000 term loan is repaid prior to November 22, 2015, a prepayment premium of 2.0% of the amount repaid would be incurred. If our $250,000 term loan is repaid during the period from November 22, 2015 to November 21, 2016, a prepayment premium of 1.0% of the amount repaid would be incurred. Subsequent to November 21, 2016, no prepayment premiums would be incurred. The amount outstanding under our $250,000 term loan bears interest at LIBOR plus a premium, which was 180 basis points as of December 31, 2014. The interest rate premium is subject to adjustment based upon changes to our credit ratings. As of December 31, 2014, the interest rate for the amount outstanding under our $250,000 term loan was 2.0%. The weighted average interest rate under our $250,000 term loan was 2.3% for the period from November 21, 2014, the date we entered into the credit agreement, to December 31, 2014. | |||||||
In addition, our credit agreement includes a feature under which the maximum borrowing availability under the new facilities may be increased to up to $2,500,000 on a combined basis in certain circumstances. | |||||||
We had a $350,000 unsecured term loan that was scheduled to mature on January 11, 2017, and was prepayable without penalty at any time. Our $350,000 unsecured term loan bore interest at a rate of LIBOR plus a premium, which was 175 basis points as of November 20, 2014. The interest rate premium was subject to adjustment based upon changes to our credit ratings. This $350,000 unsecured term loan was fully repaid on November 21, 2014 with proceeds from our $250,000 term loan and our $300,000 term loan. The weighted average interest rate for the amount outstanding under our then existing $350,000 term loan was 1.9% for both the period from January 1, 2014 to November 20, 2014 and 1.9% for the year ended December 31, 2013 and 2.0% for the period January 12, 2012, the date we entered into the loan agreement, to December 31, 2012. | |||||||
On July 9, 2014, we entered into a $500,000 unsecured term loan. This term loan was scheduled to mature on July 8, 2015, and was prepayable without penalty at any time. Our $500,000 unsecured term loan bore interest at a rate of LIBOR plus a premium, which was 175 basis points as of July 9, 2014. The interest rate premium was subject to adjustment based upon changes to our credit ratings. We used the net proceeds of our new term loan to fund a portion of the purchase price of the SIR common shares we acquired on July 9, 2014. On July 29, 2014, we sold 15,525,000 of our common shares of beneficial interest, $.01 par value per share, or our common shares, in a public offering at a price of $23.50 per share for net proceeds of approximately $349,787, after deducting the underwriting discount and other offering expenses. On August 18, 2014, we issued $350,000 of 3.75% unsecured senior notes due August 15, 2019 in a public offering for net proceeds of approximately $344,293, after deducting the underwriting discount and other offering expenses. The net proceeds from these offerings were used to fully repay amounts outstanding under our $500,000 term loan and to reduce amounts outstanding under our then existing revolving credit facility. We recorded a loss on early extinguishment of debt of $541 during the year ended December 31, 2014 which represented the unamortized deferred financing fees related to the $500,000 term loan. See Notes 6 and 11 for further information regarding our SIR investment. | |||||||
Our credit agreement provides for acceleration of payment of all amounts due thereunder upon the occurrence and continuation of certain events of default, such as a change of control of us, which includes RMR ceasing to act as our business manager and property manager. Our senior unsecured notes indenture its supplement and our credit agreement also contain a number of covenants, including covenants that restrict our ability to incur debts or to make distributions under certain circumstances and require us to maintain financial ratios and a minimum net worth. We believe we were in compliance with the terms and conditions of the respective covenants under our senior unsecured notes indenture and its supplement and our credit agreement at December 31, 2014. | |||||||
At December 31, 2014, six of our properties (eight buildings) with an aggregate net book value of $258,869 secured six mortgage notes that were assumed in connection with the acquisition of such properties. Our mortgage notes are non-recourse and do not contain any material financial covenants. | |||||||
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Fair Value of Assets and Liabilities | |||||||||||||
Fair Value of Assets and Liabilities | Note 9. Fair Value of Assets and Liabilities | ||||||||||||
Our assets and liabilities at December 31, 2014 include cash and cash equivalents, restricted cash, rents receivable, mortgage notes payable, accounts payable, senior unsecured notes, term loans, amounts due to related persons, other accrued expenses and security deposits. At December 31, 2014, 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: | |||||||||||||
Carrying Amount | Fair Value | ||||||||||||
Senior unsecured notes, 3.75% interest rate, including unamortized discount of $2,577, due in 2019 | $ | 347,423 | $ | 356,129 | |||||||||
Mortgage note payable, 5.55% interest rate, including unamortized premium of $2,167, due in 2016(1) | 85,167 | 85,171 | |||||||||||
Mortgage note payable, 5.73% interest rate, including unamortized premium of $177, due in 2015(1) | 47,418 | 48,233 | |||||||||||
Mortgage note payable, 6.21% interest rate, due in 2016(1) | 23,833 | 25,394 | |||||||||||
Mortgage note payable, 5.88% interest rate, due in 2021(1) | 14,374 | 15,249 | |||||||||||
Mortgage note payable, 7.00% interest rate, including unamortized premium of $605, due in 2019(1) | 9,563 | 10,275 | |||||||||||
Mortgage note payable, 8.15% interest rate, including unamortized premium of $398, due in 2021(1) | 7,339 | 7,956 | |||||||||||
$ | 535,117 | $ | 548,407 | ||||||||||
-1 | We assumed these mortgages in connection with our acquisitions of certain properties. The stated interest rates for these mortgage debts are the contractually stated rates. We recorded the assumed mortgages at estimated fair value on the date of acquisition and we are amortizing the fair value premiums, if any, to interest expense over the respective terms of the mortgages to reduce interest expense to the estimated market interest rates as of the date of acquisition. | ||||||||||||
We estimate the fair value of our unsecured senior notes using an average of the bid and ask price of the notes (Level 1 inputs as defined in the fair value hierarchy under GAAP). We estimate 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. | |||||||||||||
The table below presents two of our assets measured on a non-recurring basis at fair value at December 31, 2014, categorized by the level of inputs used in the valuation of these assets: | |||||||||||||
Quoted Prices in | Significant | ||||||||||||
Active Markets for | Significant Other | Unobservable | |||||||||||
Identical Assets | Observable Inputs | Inputs | |||||||||||
Description | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||
Property held for sale and classified as discontinued operations(1) | $ | 12,260 | $ | — | $ | — | $ | 12,260 | |||||
Property held for sale and classified as held for sale in continuing operations(2) | 29,896 | — | — | 29,896 | |||||||||
$ | 42,156 | $ | — | $ | — | $ | 42,156 | ||||||
-1 | The estimated fair value at December 31, 2014 of this property, for which a loss on asset impairment was recognized during the year ended December 31, 2013, is based upon broker estimates of value less estimated sales costs (Level 3 inputs as defined in the fair value hierarchy under GAAP). | ||||||||||||
-2 | The estimated fair value at December 31, 2014 of this property, for which a loss on asset impairment was recognized during the year ended December 31, 2014, is based upon sales price less estimated sales costs (Level 3 inputs as defined in the fair value hierarchy under GAAP). | ||||||||||||
During the three months ended March 31, 2014, we increased the carrying value of a property held for sale due to an increase in its estimated fair value. We sold this property in February 2014. See Note 5 for additional information regarding this property. | |||||||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Shareholders' Equity | ||||||||||||||||
Shareholders' Equity | Note 10. Shareholders’ Equity | |||||||||||||||
Common Share Awards | ||||||||||||||||
We have common shares available for issuance under the terms of our 2009 Plan. As described in Note 6, we awarded common shares to our officers and certain employees of RMR in 2012, 2013 and 2014. We also awarded each of our Trustees 2,500 common shares in 2014 with an aggregate market value of $318 ($64 per Trustee), 2,000 common shares in 2013 with an aggregate market value of $266 ($53 per Trustee) and 2,000 common shares in 2012 with an aggregate market value of $224 ($45 per Trustee) as part of their annual compensation, based upon the closing price of our common shares on the NYSE on the date of grant. The common shares awarded to our Trustees vested immediately. The common shares awarded to our officers and certain employees of RMR vest in five equal annual installments beginning on the date of grant. We include and base the value of awarded shares in general and administrative expenses at the time the awards vest. | ||||||||||||||||
A summary of shares granted and vested under the terms of our 2009 Plan for the years ended December 31, 2014, 2013 and 2012, is as follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||
Number | Average | Number | Average | Number | Average | |||||||||||
of | Grant Date | of | Grant Date | of | Grant Date | |||||||||||
Shares | Fair Value | Shares | Fair Value | Shares | Fair Value | |||||||||||
Unvested shares, beginning of year | 85,451 | $ | 23.71 | 76,104 | $ | 23.82 | 64,270 | $ | 23.89 | |||||||
Shares granted | 63,650 | 23.70 | 58,350 | 24.12 | 93,058 | 23.72 | ||||||||||
Shared forfeited or repurchased | - | - | -450 | 23.68 | -820 | 23.99 | ||||||||||
Shares vested | -58,763 | 24.17 | -48,553 | 24.38 | -80,404 | 23.76 | ||||||||||
Unvested shares, end of year | 90,338 | 23.40 | 85,451 | 23.71 | 76,104 | 23.82 | ||||||||||
The 90,338 unvested shares as of December 31, 2014 are scheduled to vest as follows: 34,040 shares in 2015, 26,952 shares in 2016, 19,116 shares in 2017 and 10,230 in 2018. As of December 31, 2014, the estimated future compensation expense for the unvested shares was $2,079 based on the closing share price of our common shares on the NYSE on December 31, 2014 of $23.01. The weighted average period over which the compensation expense will be recorded is approximately 22 months. During the years ended December 31, 2014, 2013 and 2012, we recorded $1,165, $1,269 and $1,598, respectively, of compensation expense related to our 2009 Plan. At December 31, 2014, 1,659,562 of our common shares remained available for issuance under the 2009 Plan. | ||||||||||||||||
Share Issuances | ||||||||||||||||
In July 2014, we sold 15,525,000 of our common shares in a public offering at a price of $23.50 per share for net proceeds of $349,787. | ||||||||||||||||
During the year ended December 31, 2014 and the period January 1, 2015 to February 19, 2015, we issued 38,559 and 7,749, respectively, of our common shares to RMR as part of the business management fee payable by us under our business management agreement. See Note 6 for further information regarding this agreement. | ||||||||||||||||
Distributions | ||||||||||||||||
On February 21, 2014, May 21, 2014, August 22, 2014 and November 20, 2014 we paid a $0.43 per share distribution to our common shareholders. On January 12, 2015, we declared a dividend payable to common shareholders of record on January 23, 2015 in the amount of $0.43 per share. We expect to pay this distribution on or about February 26, 2015. | ||||||||||||||||
Cash distributions per share paid or payable by us to our common shareholders for the year ended December 31, 2014, 2013, and 2012 were $1.72, $1.72 and $1.69, respectively. The characterization of our distributions paid or accrued in 2014 was 55.12% ordinary income, 41.94% return of capital and 2.94% IRC Section 1250 gain. The characterization of our distributions paid or accrued in 2013 was 82.92% ordinary income, 9.55% return of capital, 7.01% capital gain and 0.52% IRC Section 1250 gain. The characterization of our distributions paid or accrued in 2012 was 80.36% ordinary income and 19.64% return of capital. | ||||||||||||||||
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Information | |||||||||||||
Segment Information | Note 12. Segment Information | ||||||||||||
We operate in two business segments: ownership of properties that are primarily leased to government tenants and our equity method investment in SIR: | |||||||||||||
Year ended December 31, 2014 | |||||||||||||
Investment | Investment | ||||||||||||
in Real Estate | in SIR | Corporate | Consolidated | ||||||||||
Rental income | $ | 251,031 | $ | — | $ | — | $ | 251,031 | |||||
Expenses: | |||||||||||||
Real estate taxes | 28,389 | — | — | 28,389 | |||||||||
Utility expenses | 19,369 | — | — | 19,369 | |||||||||
Other operating expenses | 45,982 | — | — | 45,982 | |||||||||
Depreciation and amortization | 66,593 | — | — | 66,593 | |||||||||
Loss on asset impairment | 2,016 | — | — | 2,016 | |||||||||
Acquisition related costs | 1,344 | — | — | 1,344 | |||||||||
General and administrative | — | — | 15,809 | 15,809 | |||||||||
Total expenses | 163,693 | — | 15,809 | 179,502 | |||||||||
Operating income (loss) | 87,338 | — | -15,809 | 71,529 | |||||||||
Interest and other income | — | — | 69 | 69 | |||||||||
Interest expense | -7,820 | — | -20,228 | -28,048 | |||||||||
Loss on early extinguishment of debt | — | — | -1,307 | -1,307 | |||||||||
Income (loss) from continuing operations before income taxes and | |||||||||||||
equity in earnings of investees | 79,518 | — | -37,275 | 42,243 | |||||||||
Income tax expense | — | — | -117 | -117 | |||||||||
Loss on issuance of shares by an equity investee | — | -53 | — | -53 | |||||||||
Equity in earnings of investees | — | 10,876 | 87 | 10,963 | |||||||||
Income from continuing operations | 79,518 | 10,823 | -37,305 | 53,036 | |||||||||
Income from discontinued operations | 3,498 | — | — | 3,498 | |||||||||
Net income (loss) | $ | 83,016 | $ | 10,823 | $ | -37,305 | $ | 56,534 | |||||
Total Assets | $ | 1,714,130 | $ | 680,137 | $ | 33,348 | $ | 2,427,615 | |||||
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Selected Quarterly Financial Data (Unaudited) | |||||||||||||
Selected Quarterly Financial Data (Unaudited) | Note 13. Selected Quarterly Financial Data (Unaudited) | ||||||||||||
The following is a summary of our unaudited quarterly results of operations for 2014 and 2013. | |||||||||||||
2014 | |||||||||||||
First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
Rental income | $ | 59,820 | $ | 62,428 | $ | 64,158 | $ | 64,625 | |||||
Net income | 15,190 | 14,608 | 12,622 | 14,114 | |||||||||
Net income per common share (basic and diluted) | 0.28 | 0.27 | 0.19 | 0.20 | |||||||||
Common distributions paid | 0.43 | 0.43 | 0.43 | 0.43 | |||||||||
2013 | |||||||||||||
First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
Rental income | $ | 56,304 | $ | 55,934 | $ | 56,401 | $ | 58,271 | |||||
Net income | 24,726 | 15,204 | 1,966 | 12,724 | |||||||||
Net income per common share (basic and diluted) | 0.45 | 0.28 | 0.04 | 0.23 | |||||||||
Common distributions paid | 0.43 | 0.43 | 0.43 | 0.43 | |||||||||
Pro_Forma_Information_unaudite
Pro Forma Information (unaudited) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Pro Forma Information (unaudited) | |||||||||
Pro Forma Information (unaudited) | Note 14. Pro Forma Information (unaudited) | ||||||||
During the years ended December 31, 2014, we purchased four properties (five buildings) for an aggregate purchase price of $167,525, including the assumption of $97,524 of mortgage debt and excluding acquisition costs. The following table presents our pro forma results of operations as if these acquisitions and financing activities were completed on January 1, 2013. This pro forma data is not necessarily indicative of what our actual results of operations would have been for the periods presented, nor does it represent the results of operations for any future period. Differences could result from various factors, including but not limited to, additional property acquisitions, property sales, changes in interest rates and changes in our debt or equity capital and such differences could be significant. | |||||||||
Years ended December 31, | |||||||||
2014 | 2013 | ||||||||
Total Revenues | $ | 258,604 | $ | 246,006 | |||||
Net income | 57,214 | 51,500 | |||||||
Per share data (basic and diluted): | |||||||||
Net income | $ | 0.93 | $ | 0.94 | |||||
During the year ended December 31, 2014, we recognized revenues of $11,240 and operating income of $1,438 arising from the above referenced acquisitions. | |||||||||
SCHEDULE_III_REAL_ESTATE_AND_A
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | [ | |||||||||||||||||||||||
GOVERNMENT PROPERTIES INCOME TRUST | ||||||||||||||||||||||||
SCHEDULE III | ||||||||||||||||||||||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Costs | ||||||||||||||||||||||||
Initial Cost to Company | Capitalized | Cost amount carried at Close of Period | Original | |||||||||||||||||||||
Buildings and | Subsequent to | Buildings and | Accumulated | Date(s) | Construction | |||||||||||||||||||
Property | Location | Encumbrances(1) | Land | Equipment | Acquisition | Land | Equipment | Total (2) | Depreciation(3) | Acquired | Date(s) | |||||||||||||
1 | 131 Clayton Street | Montgomery, AL | $ - | $ 920 | $ 9,084 | $ 16 | $ 920 | $ 9,100 | $ 10,020 | $ (796) | 6/22/11 | 2007 | ||||||||||||
2 | 4344 Carmichael Road | Montgomery, AL | - | 1,374 | 11,658 | - | 1,374 | 11,658 | 13,032 | -291 | 12/17/13 | 2009 | ||||||||||||
3 | 15451 North 28th Avenue | Phoenix, AZ | - | 1,917 | 7,416 | - | 1,917 | 7,416 | 9,333 | -62 | 9/10/14 | 1996 | ||||||||||||
4 | 711 14th Avenue | Safford, AZ | - | 460 | 11,708 | 106 | 460 | 11,814 | 12,274 | -1,322 | 6/16/10 | 1992 | ||||||||||||
5 | 10949 N. Mather Boulevard | Rancho Cordova, CA | - | 562 | 16,923 | - | 562 | 16,923 | 17,485 | -494 | 10/30/13 | 2012 | ||||||||||||
6 | 4181 Ruffin Road | San Diego, CA | - | 5,250 | 10,549 | 3,698 | 5,250 | 14,247 | 19,497 | -1,624 | 7/16/10 | 1981 | ||||||||||||
7 | 4560 Viewridge Road | San Diego, CA | - | 4,269 | 18,316 | 906 | 4,347 | 19,144 | 23,491 | -8,635 | 3/31/97 | 1996 | ||||||||||||
8 | 5045 East Butler Street | Fresno, CA | - | 7,276 | 61,118 | 8 | 7,277 | 61,125 | 68,402 | -18,910 | 8/29/12 | 1971 | ||||||||||||
9 | 9800 Goethe Road | Sacramento, CA | - | 1,550 | 12,263 | 1,491 | 1,550 | 13,754 | 15,304 | -1,798 | 12/23/09 | 1988 | ||||||||||||
10 | 9815 Goethe Road | Sacramento, CA | - | 1,450 | 9,465 | 1,523 | 1,450 | 10,988 | 12,438 | -869 | 9/14/11 | 1992 | ||||||||||||
11 | Capital Place | Sacramento, CA | - | 2,290 | 35,891 | 3,804 | 2,290 | 39,695 | 41,985 | -4,898 | 12/17/09 | 1988 | ||||||||||||
12 | Sky Park Centre | San Diego, CA | - | 685 | 5,530 | 4 | 685 | 5,534 | 6,219 | -1,734 | 6/24/02 | 1986 | ||||||||||||
13 | Turning Basin Business Park | Stockton, CA | - | 563 | 5,470 | - | 563 | 5,470 | 6,033 | -330 | 7/20/12 | 2012 | ||||||||||||
14 | 12795 West Alameda Parkway | Lakewood, CO | 7,339 | 2,640 | 23,777 | 1,045 | 2,640 | 24,822 | 27,462 | -3,047 | 1/15/10 | 1997 | ||||||||||||
15 | 16194 West 45th Street | Golden, CO | - | 494 | 152 | 6,457 | 495 | 6,608 | 7,103 | -2,732 | 3/31/97 | 1997 | ||||||||||||
16 | Corporate Center | Lakewood, CO | - | 2,886 | 27,537 | 3,849 | 2,887 | 31,385 | 34,272 | -8,841 | 10/11/02 | 1981 | ||||||||||||
17 | 20 Massachusetts Avenue | Washington, DC | - | 12,008 | 51,528 | 20,858 | 12,228 | 72,166 | 84,394 | -27,669 | 3/31/97 | 1996 | ||||||||||||
18 | 625 Indiana Avenue | Washington, DC | - | 26,000 | 25,955 | 3,437 | 26,000 | 29,392 | 55,392 | -3,238 | 8/17/10 | 1989 | ||||||||||||
19 | 7850 Southwest 6th Court | Plantation, FL | - | 4,800 | 30,592 | 383 | 4,800 | 30,975 | 35,775 | -2,816 | 5/12/11 | 1999 | ||||||||||||
20 | 8900 Grand Oak Circle | Tampa, FL | 9,563 | 1,100 | 11,773 | 133 | 1,100 | 11,906 | 13,006 | -1,261 | 10/15/10 | 1994 | ||||||||||||
21 | 181 Spring Street NW | Atlanta, GA | - | 4,047 | 20,017 | 1 | 4,048 | 20,017 | 24,065 | -1,209 | 7/25/12 | 2005 | ||||||||||||
22 | 220 E. Bryan Street | Savannah, GA | - | 950 | 2,376 | 46 | 950 | 2,422 | 3,372 | -274 | 7/16/10 | 1990 | ||||||||||||
23 | 4712 Southpark Boulevard | Ellenwood, GA | - | 1,390 | 19,635 | - | 1,390 | 19,635 | 21,025 | -1,186 | 7/25/12 | 2007 | ||||||||||||
24 | Corporate Square | Atlanta, GA | - | 3,996 | 29,762 | 4,666 | 3,996 | 34,428 | 38,424 | -8,270 | 7/16/04 | 1967 | ||||||||||||
25 | Executive Park | Atlanta, GA | - | 1,521 | 11,826 | 3,869 | 1,521 | 15,695 | 17,216 | -3,195 | 7/16/04 | 1972 | ||||||||||||
26 | One Georgia Center | Atlanta, GA | - | 10,250 | 27,933 | 175 | 10,250 | 28,108 | 38,358 | -2,297 | 9/30/11 | 1968 | ||||||||||||
27 | GSA Boise Portfolio | Boise, ID | - | 3,390 | 29,026 | 330 | 3,391 | 29,355 | 32,746 | -1,701 | 9/11/12 | 1996; 1997; 2002 | ||||||||||||
28 | 2020 S. Arlington Heights | Arlington Heights, IL | - | 1,450 | 13,160 | 846 | 1,450 | 14,006 | 15,456 | -1,770 | 12/29/09 | 2002 | ||||||||||||
29 | Intech Park | Indianapolis, IN | 47,418 | 4,170 | 68,888 | 2,264 | 4,170 | 71,152 | 75,322 | -5,748 | 10/14/11 | 2000; 2001; 2008 | ||||||||||||
30 | 400 State Street | Kansas City, KS | - | 640 | 9,932 | 1,345 | 640 | 11,277 | 11,917 | -1,315 | 6/16/10 | 1990 | ||||||||||||
31 | 7125 Industrial Road | Florence, KY | - | 1,698 | 11,722 | 10 | 1,698 | 11,732 | 13,430 | -586 | 12/31/12 | 1980 | ||||||||||||
32 | 25 Newport Avenue | Quincy, MA | - | 2,700 | 9,199 | 348 | 2,700 | 9,547 | 12,247 | -922 | 2/16/11 | 1985 | ||||||||||||
33 | 251 Causeway Street | Boston, MA | - | 5,100 | 17,293 | 684 | 5,100 | 17,977 | 23,077 | -1,915 | 8/17/10 | 1988 | ||||||||||||
34 | 75 Pleasant Street | Malden, MA | - | 1,050 | 31,086 | 118 | 1,050 | 31,204 | 32,254 | -3,565 | 5/24/10 | 2008 | ||||||||||||
35 | One Montvale Avenue | Stoneham, MA | - | 1,670 | 11,035 | 930 | 1,670 | 11,965 | 13,635 | -1,277 | 6/16/10 | 1987 | ||||||||||||
36 | 20400 Century Boulevard | Germantown, MD | - | 2,305 | 9,890 | 740 | 2,347 | 10,588 | 12,935 | -4,738 | 3/31/97 | 1995 | ||||||||||||
37 | 2115 East Jefferson Street | Rockville, MD | - | 3,349 | 11,152 | - | 3,349 | 11,152 | 14,501 | -372 | 8/27/13 | 2003 | ||||||||||||
38 | 3300 75th Avenue | Landover, MD | 23,833 | 4,110 | 36,371 | 402 | 4,110 | 36,773 | 40,883 | -4,423 | 2/26/10 | 2004 | ||||||||||||
39 | 4201 Patterson Avenue | Baltimore, MD | - | 900 | 8,097 | 2,240 | 901 | 10,336 | 11,237 | -3,421 | 10/15/98 | 1989 | ||||||||||||
[ | ||||||||||||||||||||||||
GOVERNMENT PROPERTIES INCOME TRUST | ||||||||||||||||||||||||
SCHEDULE III | ||||||||||||||||||||||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Costs | ||||||||||||||||||||||||
Initial Cost to Company | Capitalized | Cost amount carried at Close of Period | Original | |||||||||||||||||||||
Buildings and | Subsequent to | Buildings and | Accumulated | Date(s) | Construction | |||||||||||||||||||
Building | City | Encumbrances(1) | Land | Equipment | Acquisition | Land | Equipment | Total (2) | Depreciation(3) | Acquired | Date(s) | |||||||||||||
40 | 1401 Rockville Pike | Rockville, MD | $ - | $ 3,251 | $ 29,258 | $ 5,460 | $ 3,248 | $ 34,721 | $ 37,969 | $ (13,286) | 2/2/98 | 1986 | ||||||||||||
41 | Meadows Business Park | Woodlawn, MD | - | 3,735 | 21,509 | 213 | 3,735 | 21,722 | 25,457 | -2,117 | 2/15/11 | 1973 | ||||||||||||
42 | Rutherford Business Park | Windsor Mill, MD | - | 1,598 | 10,219 | 8 | 1,598 | 10,227 | 11,825 | -533 | 11/16/12 | 1972 | ||||||||||||
43 | 11411 E. Jefferson Avenue | Detroit, MI | - | 630 | 18,002 | - | 630 | 18,002 | 18,632 | -2,100 | 4/23/10 | 2009 | ||||||||||||
44 | 330 South Second Avenue | Minneapolis, MN | - | 3,990 | 18,186 | 7,640 | 3,990 | 25,826 | 29,816 | -2,407 | 7/16/10 | 1980 | ||||||||||||
45 | Rosedale Corporate Plaza | Roseville, MN | - | 672 | 6,045 | 1,295 | 672 | 7,340 | 8,012 | -2,423 | 12/1/99 | 1987 | ||||||||||||
46 | 1300 Summit Street | Kansas City, MO | - | 2,776 | 12,070 | 197 | 2,776 | 12,267 | 15,043 | -684 | 11/16/12 | 2011 | ||||||||||||
47 | 4241-4300 NE 34th Street | Kansas City, MO | - | 1,443 | 6,193 | 3,769 | 1,780 | 9,625 | 11,405 | -4,249 | 3/31/97 | 1995 | ||||||||||||
48 | 1220 Echelon Parkway | Jackson, MS | - | 440 | 25,458 | 49 | 440 | 25,507 | 25,947 | -1,541 | 7/25/12 | 2009 | ||||||||||||
49 | 10-12 Celina Avenue | Nashua, NH | - | 3,000 | 14,052 | 154 | 3,000 | 14,206 | 17,206 | -1,900 | 8/31/09 | 1997 | ||||||||||||
50 | 50 West State Street | Trenton, NJ | - | 5,000 | 38,203 | 1,334 | 5,000 | 39,537 | 44,537 | -3,889 | 12/30/10 | 1989 | ||||||||||||
51 | 435 Montano Boulevard | Albuquerque, NM | - | 710 | 1,651 | 147 | 710 | 1,798 | 2,508 | -254 | 7/16/10 | 1984 | ||||||||||||
52 | 138 Delaware Avenue | Buffalo, NY | - | 4,405 | 18,899 | 5,016 | 4,485 | 23,835 | 28,320 | -8,837 | 3/31/97 | 1994 | ||||||||||||
53 | 305 East 46th Street | New York, NY | - | 36,800 | 66,661 | 1,217 | 36,800 | 67,878 | 104,678 | -5,991 | 5/27/11 | 2008 | ||||||||||||
54 | 5000 Corporate Court | Holtsville, NY | - | 6,530 | 17,711 | 1,106 | 6,530 | 18,817 | 25,347 | -1,551 | 8/31/11 | 2000 | ||||||||||||
55 | Airline Corporate Center | Colonie, NY | - | 790 | 6,400 | - | 790 | 6,400 | 7,190 | -400 | 6/22/12 | 2004 | ||||||||||||
56 | 4600 25th Avenue | Salem, OR | - | 6,510 | 17,973 | 3,920 | 6,510 | 21,893 | 28,403 | -1,672 | 12/20/11 | 2007 | ||||||||||||
57 | Synergy Business Park | Columbia, SC | - | 1,439 | 11,143 | 2,488 | 1,439 | 13,631 | 15,070 | -2,039 | 5/10/2006; 9/17/2010 | 1982; 1985 | ||||||||||||
58 | One Memphis Place | Memphis, TN | - | 1,630 | 5,645 | 897 | 1,630 | 6,542 | 8,172 | -730 | 9/17/10 | 1985 | ||||||||||||
59 | 701 Clay Road | Waco, TX | - | 2,030 | 8,708 | 2,100 | 2,060 | 10,778 | 12,838 | -4,081 | 12/23/97 | 1997 | ||||||||||||
60 | Aquia Commerce Center | Stafford, VA | - | 2,090 | 7,465 | 162 | 2,090 | 7,627 | 9,717 | -665 | 6/22/11 | 1988; 1999 | ||||||||||||
61 | Enterchange at Meadowville | Chester, VA | - | 1,478 | 9,594 | 235 | 1,478 | 9,829 | 11,307 | -320 | 8/28/13 | 2011 | ||||||||||||
62 | Pender Business Park | Fairfax, VA | - | 2,529 | 21,386 | 87 | 2,529 | 21,473 | 24,002 | -623 | 11/4/13 | 2000 | ||||||||||||
63 | 3920 Pender Drive | Fairfax, VA | 14,374 | 2,964 | 12,840 | 9 | 2,963 | 12,850 | 15,813 | -241 | 3/21/14 | 1981 | ||||||||||||
64 | 1759 & 1760 Business Park Drive | Reston, VA | 85,167 | 9,066 | 78,658 | 51 | 9,066 | 78,709 | 87,775 | -1,147 | 5/28/14 | 1987 | ||||||||||||
65 | 9960 Maryland Drive1 | Richmond, VA | - | 2,614 | 15,930 | 29 | 2,614 | 15,959 | 18,573 | -232 | 5/20/14 | 1994 | ||||||||||||
66 | 65 Bowdoin Street | S. Burlington, VT | - | 700 | 8,416 | 120 | 700 | 8,536 | 9,236 | -1,007 | 4/9/10 | 2009 | ||||||||||||
67 | 840 North Broadway | Everett, WA | - | 3,360 | 15,376 | 159 | 3,360 | 15,535 | 18,895 | -965 | 6/28/12 | 1985 | ||||||||||||
68 | Stevens Center | Richland, WA | - | 3,970 | 17,035 | 769 | 4,042 | 17,732 | 21,774 | -7,732 | 3/31/97 | 1995 | ||||||||||||
69 | 11050 West Liberty Drive | Milwaukee, WI | - | 945 | 4,539 | 132 | 945 | 4,671 | 5,616 | -424 | 6/9/11 | 2006 | ||||||||||||
70 | 2029 Stonewall Jackson Drive | Falling Waters, WV | - | 906 | 3,886 | 263 | 922 | 4,133 | 5,055 | -1,795 | 3/31/97 | 1993 | ||||||||||||
71 | 5353 Yellowstone Road | Cheyenne, WY | - | 1,915 | 8,217 | 1,193 | 1,950 | 9,375 | 11,325 | -4,405 | 3/31/97 | 1995 | ||||||||||||
$ 187,694 | $ 253,096 | $ 1,322,433 | $ 106,951 | $ 254,008 | $ 1,428,472 | $ 1,682,480 | $ (219,791) | |||||||||||||||||
-1 | Includes the unamortized balance of the fair value adjustments. | |||||||||||||||||||||||
-2 | Excludes value of real estate intangibles. Aggregate cost for federal income tax purposes is approximately $1,953,910. | |||||||||||||||||||||||
-3 | Depreciation on building and improvements is provided for periods ranging up to 40 years and on equipment up to 12 years. | |||||||||||||||||||||||
GOVERNMENT PROPERTIES INCOME TRUST | ||||||||||||||||||||||||
SCHEDULE III | ||||||||||||||||||||||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Analysis of the carrying amount of real estate properties and accumulated depreciation: | ||||||||||||||||||||||||
[ | ||||||||||||||||||||||||
Real Estate | Accumulated | |||||||||||||||||||||||
Properties | Depreciation | |||||||||||||||||||||||
Balance at December 31, 2011 | $ | 1,288,453 | $ | 139,210 | ||||||||||||||||||||
Additions | 192,560 | 30,601 | ||||||||||||||||||||||
Disposals | -13,150 | -13,150 | ||||||||||||||||||||||
Balance at December 31, 2012 | 1,467,863 | 156,661 | ||||||||||||||||||||||
Additions | 103,413 | 33,688 | ||||||||||||||||||||||
Disposals | -2,714 | -2,714 | ||||||||||||||||||||||
Balance at December 31, 2013 | 1,568,562 | 187,635 | ||||||||||||||||||||||
Additions | 151,316 | 37,671 | ||||||||||||||||||||||
Loss on asset impairment | -7,058 | -5,071 | ||||||||||||||||||||||
Disposals | -444 | -444 | ||||||||||||||||||||||
Reclassification of assets held for sale | -29,896 | - | ||||||||||||||||||||||
Balance at December 31, 2014 | $ | 1,682,480 | $ | 219,791 | ||||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies | |
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. |
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. Our Managing Trustees are also the managing trustees of SIR. Our Managing Trustees are also owners of Reit Management & Research LLC, or RMR, which is the manager of us, 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 6 and 11 for a further discussion of our investments in AIC and SIR. | |
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 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. For properties qualifying as acquired businesses under Accounting Standards Codification 805, Business Combinations, 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 amount over the estimated life of the relationships. | |
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 $868, $1,123, and $2,056 during the years ended December 31, 2014, 2013 and 2012, 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 $26,844, $20,482, and $17,390 during the years ended December 31, 2014, 2013 and 2012, 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 $39,040 and $38,487 as of December 31, 2014 and 2013, respectively, net of accumulated amortization of $18,288 and $14,271, respectively. Capitalized below market lease values were $26,605 and $27,304 as of December 31, 2014 and 2013, respectively, net of accumulated amortization of $10,681 and $8,220, respectively. | |
The value of acquired in place leases, exclusive of the value of above market and below market acquired in place leases, were $198,157 and $167,256 as of December 31, 2014 and 2013, respectively, net of accumulated amortization of $68,829 and $49,207, 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, 2014 are estimated to be $28,601 in 2015, $26,001 in 2016, $23,734 in 2017, $19,462 in 2018, $14,413 in 2019 and $21,945 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. | |
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. |
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 $15,401 and $13,935 at December 31, 2014 and 2013, respectively, and accumulated amortization of deferred leasing costs totaled $3,951 and $2,317 at December 31 2014 and 2013, respectively. Future amortization of deferred leasing costs to be recognized during the current terms of our existing leases as of December 31, 2014, are estimated to be $2,035 in 2015, $1,915 in 2016, $1,459 in 2017, $1,306 in 2018, $1,205 in 2019 and $3,530 thereafter. |
Deferred financing fees | Deferred Financing Fees. Deferred financing fees include issuance or assumption costs related to borrowings and we amortize those costs as interest expense over the terms of the respective loans. Deferred financing fees totaled $14,055 and $9,335 at December 31, 2014 and 2013, respectively, and accumulated amortization of deferred financing fees totaled $1,273 and $5,424 at December 31, 2014 and 2013, respectively. Future amortization of deferred financing fees to be recognized with respect to our loans as of December 31, 2014 are estimated to be $2,917 in 2015, $2,637 in 2016, $2,548 in 2017, $2,548 in 2018, $1,346 in 2019 and $786 thereafter. |
Revenue Recognition | Revenue Recognition. We recognize rental income from operating leases that contain fixed contractual rent changes on a straight line basis over the term of the lease agreements. Certain of our leases with government tenants provide the tenant the right to terminate 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. We increased rental income by $4,501, $2,739 and $3,428 to record revenue on a straight line basis during the years ended December 31, 2014, 2013 and 2012, respectively. Rents receivable include $15,017 and $10,515 of straight line rent receivables at December 31, 2014 and 2013, respectively. |
Income Taxes | Income Taxes. We have elected to be taxed as a REIT under the 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 (Loss). Cumulative other comprehensive income (loss) represents our share of the comprehensive income (loss) of AIC and SIR. See Notes 6 and 11 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 U.S. generally accepted accounting principles, or 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 by the weighted average number of our common shares of beneficial ownership, $.01 par value, or common shares, 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. |
Segment Reporting | Segment Reporting. We operate in two business segments: ownership of properties that are primarily leased to government tenants and our equity method investment in SIR. |
Per_Common_Share_Amounts_Table
Per Common Share Amounts (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Per Common Share Amounts | |||||||||||
Per Common Share Amounts | |||||||||||
For the year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Weighted average common shares for basic earnings per share | 61,313 | 54,606 | 48,558 | ||||||||
Effect of dilutive securities: unvested share awards | 86 | 79 | 86 | ||||||||
Weighted average common shares for diluted earnings per share | 61,399 | 54,685 | 48,644 | ||||||||
Real_Estate_Properties_Tables
Real Estate Properties (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Real Estate Properties | ||||||||||||||||||||||||||||||
Schedule of future minimum lease payments related properties, excluding properties classified as discontinued operations and estimated real estate tax and other expense reimbursements | ||||||||||||||||||||||||||||||
2014 | $ | 222,845 | ||||||||||||||||||||||||||||
2015 | 207,019 | |||||||||||||||||||||||||||||
2016 | 180,634 | |||||||||||||||||||||||||||||
2017 | 151,512 | |||||||||||||||||||||||||||||
2018 | 123,106 | |||||||||||||||||||||||||||||
Thereafter | 262,559 | |||||||||||||||||||||||||||||
$ | 1,147,675 | |||||||||||||||||||||||||||||
Purchase prices of acquisitions allocated based on the estimated fair values of the acquired assets and assumed liabilities | Number | Premium | ||||||||||||||||||||||||||||
of | Buildings | Acquired | Other | on | ||||||||||||||||||||||||||
Acquisition | Properties/ | Square | Purchase | and | Acquired | Lease | Assumed | Assumed | ||||||||||||||||||||||
Date | Location | Type | Buildings | Feet | Price(1) | Land | Improvements | Leases | Obligations | Liabilities | Debt | |||||||||||||||||||
March 2014 | Fairfax, VA | Office | 1-Jan | 83,130 | $ | 19,775 | $ | 2,964 | $ | 12,840 | $ | 3,971 | $ | — | $ | -233 | $ | — | ||||||||||||
May 2014 | Richmond, VA | Office | 1-Jan | 173,932 | 22,500 | 2,614 | 15,930 | 4,003 | -47 | — | — | |||||||||||||||||||
May 2014 | Reston, VA | Office | 2-Jan | 406,388 | 112,250 | 9,066 | 78,658 | 28,071 | -398 | -93 | -3,147 | |||||||||||||||||||
September 2014 | Phoenix, AZ | Office | 1-Jan | 66,743 | 13,000 | 1,917 | 7,416 | 3,667 | — | — | — | |||||||||||||||||||
5-Apr | 730,193 | $ | 167,525 | $ | 16,561 | $ | 114,844 | $ | 39,712 | $ | -445 | $ | -326 | $ | -3,147 | |||||||||||||||
-1 | Purchase price excludes acquisition related costs. | |||||||||||||||||||||||||||||
Summarized balance sheet information for properties classified as continued operations | ||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||
Real estate properties, net | $ | 29,896 | ||||||||||||||||||||||||||||
Rents receivable | 605 | |||||||||||||||||||||||||||||
Other assets | 2,296 | |||||||||||||||||||||||||||||
Assets of property held for sale | $ | 32,797 | ||||||||||||||||||||||||||||
Other liabilities | $ | 343 | ||||||||||||||||||||||||||||
Liabilities of property held for sale | $ | 343 | ||||||||||||||||||||||||||||
Summarized balance sheet and income statement information for properties classified as discontinued operations | Balance Sheets: | |||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
Real estate properties, net | $ | 12,260 | $ | 25,574 | ||||||||||||||||||||||||||
Rents receivable | 782 | 381 | ||||||||||||||||||||||||||||
Other assets | 123 | 42 | ||||||||||||||||||||||||||||
Assets of discontinued operations | $ | 13,165 | $ | 25,997 | ||||||||||||||||||||||||||
Other liabilities | $ | 150 | $ | 276 | ||||||||||||||||||||||||||
Liabilities of discontinued operations | $ | 150 | $ | 276 | ||||||||||||||||||||||||||
Statements of Operations: | ||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Rental income | $ | 1,673 | $ | 4,580 | $ | 7,376 | ||||||||||||||||||||||||
Real estate taxes | -427 | -678 | -928 | |||||||||||||||||||||||||||
Utility expenses | -226 | -539 | -1,043 | |||||||||||||||||||||||||||
Other operating expenses | -459 | -966 | -1,484 | |||||||||||||||||||||||||||
Depreciation and amortization | — | -1,025 | -2,096 | |||||||||||||||||||||||||||
General and administrative | -181 | -287 | -431 | |||||||||||||||||||||||||||
Loss on asset impairment | — | -10,142 | -494 | |||||||||||||||||||||||||||
Increase in carrying value of asset held for sale | 2,344 | — | — | |||||||||||||||||||||||||||
Net gain on sale of properties | 774 | 8,168 | — | |||||||||||||||||||||||||||
Income (loss) from discontinued operations | $ | 3,498 | $ | -889 | $ | 900 | ||||||||||||||||||||||||
Indebtedness_Tables
Indebtedness (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Indebtedness | |||||||
Composition of outstanding indebtedness | December 31, | December 31, | |||||
2014 | 2013 | ||||||
Unsecured revolving credit facility | $ | — | $ | 157,000 | |||
Unsecured term loan, due in 2017 | — | 350,000 | |||||
Unsecured term loan, due in 2020 | 300,000 | — | |||||
Unsecured term loan, due in 2022 | 250,000 | — | |||||
Senior unsecured notes, 3.75% interest rate, including unamortized discount of $2,577, due in 2019 | 347,423 | — | |||||
Mortgage note payable, 5.55% interest rate, including unamortized premium of $2,167, due in 2016(1) | 85,167 | — | |||||
Mortgage note payable, 5.73% interest rate, including unamortized premium of $177, due in 2015(1) | 47,418 | 48,377 | |||||
Mortgage note payable, 6.21% interest rate, due in 2016(1) | 23,833 | 24,147 | |||||
Mortgage note payable, 5.88% interest rate, due in 2021(1) | 14,374 | — | |||||
Mortgage note payable, 7.00% interest rate, including unamortized premium of $605, due in 2019(1) | 9,563 | 9,919 | |||||
Mortgage note payable, 8.15% interest rate, including unamortized premium of $398, due in 2021(1) | 7,339 | 8,284 | |||||
$ | 1,085,117 | $ | 597,727 | ||||
-1 | We assumed these mortgages in connection with our acquisitions of certain 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. | ||||||
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Fair Value of Assets and Liabilities | |||||||||||||
Schedule of fair value and carrying value of financial instruments | Senior unsecured notes, 3.75% interest rate, including unamortized discount of $2,577, due in 2019 | $ | 347,423 | $ | 356,129 | ||||||||
Mortgage note payable, 5.55% interest rate, including unamortized premium of $2,167, due in 2016(1) | 85,167 | 85,171 | |||||||||||
Mortgage note payable, 5.73% interest rate, including unamortized premium of $177, due in 2015(1) | 47,418 | 48,233 | |||||||||||
Mortgage note payable, 6.21% interest rate, due in 2016(1) | 23,833 | 25,394 | |||||||||||
Mortgage note payable, 5.88% interest rate, due in 2021(1) | 14,374 | 15,249 | |||||||||||
Mortgage note payable, 7.00% interest rate, including unamortized premium of $605, due in 2019(1) | 9,563 | 10,275 | |||||||||||
Mortgage note payable, 8.15% interest rate, including unamortized premium of $398, due in 2021(1) | 7,339 | 7,956 | |||||||||||
$ | 535,117 | $ | 548,407 | ||||||||||
-1 | We assumed these mortgages in connection with our acquisitions of certain 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. | ||||||||||||
Schedule of assets measured on a non-recurring basis at fair value, categorized by the level of inputs used in the valuation assets | Quoted Prices in | Significant | |||||||||||
Active Markets for | Significant Other | Unobservable | |||||||||||
Identical Assets | Observable Inputs | Inputs | |||||||||||
Description | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||
Property held for sale and classified as discontinued operations(1) | $ | 12,260 | $ | — | $ | — | $ | 12,260 | |||||
Property held for sale and classified as held for sale in continuing operations(2) | 29,896 | — | — | 29,896 | |||||||||
$ | 42,156 | $ | — | $ | — | $ | 42,156 | ||||||
-1 | The estimated fair value at December 31, 2014 of this property, for which a loss on asset impairment was recognized during the year ended December 31, 2013, is based upon broker estimates of value less estimated sales costs (Level 3 inputs as defined in the fair value hierarchy under GAAP). | ||||||||||||
-2 | The estimated fair value at December 31, 2014 of this property, for which a loss on asset impairment was recognized during the year ended December 31, 2014, is based upon sales price less estimated sales costs (Level 3 inputs as defined in the fair value hierarchy under GAAP). | ||||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Shareholders' Equity | ||||||||||||||||
Summary of shares granted and vested under the terms of the entity's 2009 Plan | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||
Number | Average | Number | Average | Number | Average | |||||||||||
of | Grant Date | of | Grant Date | of | Grant Date | |||||||||||
Shares | Fair Value | Shares | Fair Value | Shares | Fair Value | |||||||||||
Unvested shares, beginning of year | 85,451 | $ | 23.71 | 76,104 | $ | 23.82 | 64,270 | $ | 23.89 | |||||||
Shares granted | 63,650 | 23.70 | 58,350 | 24.12 | 93,058 | 23.72 | ||||||||||
Shared forfeited or repurchased | - | - | -450 | 23.68 | -820 | 23.99 | ||||||||||
Shares vested | -58,763 | 24.17 | -48,553 | 24.38 | -80,404 | 23.76 | ||||||||||
Unvested shares, end of year | 90,338 | 23.40 | 85,451 | 23.71 | 76,104 | 23.82 | ||||||||||
Equity_Investment_in_Select_In
Equity Investment in Select Income REIT (Tables) (SIR) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SIR | ||||||||||
Schedule Of Summarized Balance Sheet Information Of Equity Method Investee Table Text Block | ||||||||||
Consolidated Balance Sheets: | ||||||||||
December 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Real estate properties, net | $ | 1,772,510 | $ | 1,579,234 | ||||||
Acquired real estate leases, net | 120,700 | 129,426 | ||||||||
Cash and cash equivalents | 13,504 | 20,025 | ||||||||
Rents receivable, net | 68,385 | 55,335 | ||||||||
Other assets, net | 18,132 | 17,839 | ||||||||
Total assets | $ | 1,993,231 | $ | 1,801,859 | ||||||
Revolving credit facility | $ | 77,000 | $ | 159,000 | ||||||
Term loan | 350,000 | 350,000 | ||||||||
Mortgage notes payable | 18,816 | 27,147 | ||||||||
Assumed real estate lease obligations, net | 26,475 | 26,966 | ||||||||
Other liabilities | 40,493 | 40,055 | ||||||||
Shareholders' equity | 1,480,447 | 1,198,691 | ||||||||
Total liabilities and shareholders' equity | $ | 1,993,231 | $ | 1,801,859 | ||||||
Schedule Of Summarized Income Statement Information Of Equity Method Investee Table Text Block | Consolidated Statements of Income: | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Rental income | $ | 189,743 | $ | 159,011 | $ | 105,559 | ||||
Tenant reimbursements and other income | 32,937 | 29,312 | 17,231 | |||||||
Total revenues | 222,680 | 188,323 | 122,790 | |||||||
Operating expenses | 40,799 | 36,382 | 23,796 | |||||||
Depreciation and amortization | 41,054 | 31,091 | 14,860 | |||||||
Acquisition related costs | 7,348 | 2,002 | 2,470 | |||||||
General and administrative | 14,881 | 12,423 | 8,203 | |||||||
Total expenses | 104,082 | 81,898 | 49,329 | |||||||
Operating income | 118,598 | 106,425 | 73,461 | |||||||
Interest expense | -12,974 | -13,763 | -7,565 | |||||||
Gain on early extinguishment of debt | 243 | — | — | |||||||
Income before income tax expense and equity in earnings of an investee | 105,867 | 92,662 | 65,896 | |||||||
Income tax expense (benefit) | -175 | 96 | -290 | |||||||
Equity in earnings of an investee | 87 | 334 | 269 | |||||||
Income before gain on sale of property | 105,779 | 93,092 | 65,875 | |||||||
Gain on sale of property | 116 | — | — | |||||||
Net income | $ | 105,895 | $ | 93,092 | $ | 65,875 | ||||
Weighted average common shares outstanding (basic) | 55,964 | 44,539 | 27,117 | |||||||
Weighted average common shares outstanding (diluted) | 56,035 | 44,592 | 27,122 | |||||||
Net income per common share (basic and diluted) | $ | 1.89 | $ | 2.09 | $ | 2.43 | ||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Information | |||||||||||||
Schedule of ownership of properties that are primarily leased to government tenants and our equity method investment in SIR | |||||||||||||
Year ended December 31, 2014 | |||||||||||||
Investment | Investment | ||||||||||||
in Real Estate | in SIR | Corporate | Consolidated | ||||||||||
Rental income | $ | 251,031 | $ | — | $ | — | $ | 251,031 | |||||
Expenses: | |||||||||||||
Real estate taxes | 28,389 | — | — | 28,389 | |||||||||
Utility expenses | 19,369 | — | — | 19,369 | |||||||||
Other operating expenses | 45,982 | — | — | 45,982 | |||||||||
Depreciation and amortization | 66,593 | — | — | 66,593 | |||||||||
Loss on asset impairment | 2,016 | — | — | 2,016 | |||||||||
Acquisition related costs | 1,344 | — | — | 1,344 | |||||||||
General and administrative | — | — | 15,809 | 15,809 | |||||||||
Total expenses | 163,693 | — | 15,809 | 179,502 | |||||||||
Operating income (loss) | 87,338 | — | -15,809 | 71,529 | |||||||||
Interest and other income | — | — | 69 | 69 | |||||||||
Interest expense | -7,820 | — | -20,228 | -28,048 | |||||||||
Loss on early extinguishment of debt | — | — | -1,307 | -1,307 | |||||||||
Income (loss) from continuing operations before income taxes and | |||||||||||||
equity in earnings of investees | 79,518 | — | -37,275 | 42,243 | |||||||||
Income tax expense | — | — | -117 | -117 | |||||||||
Loss on issuance of shares by an equity investee | — | -53 | — | -53 | |||||||||
Equity in earnings of investees | — | 10,876 | 87 | 10,963 | |||||||||
Income from continuing operations | 79,518 | 10,823 | -37,305 | 53,036 | |||||||||
Income from discontinued operations | 3,498 | — | — | 3,498 | |||||||||
Net income (loss) | $ | 83,016 | $ | 10,823 | $ | -37,305 | $ | 56,534 | |||||
Total Assets | $ | 1,714,130 | $ | 680,137 | $ | 33,348 | $ | 2,427,615 | |||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Selected Quarterly Financial Data (Unaudited) | |||||||||||||
Summary of unaudited quarterly results of operations | |||||||||||||
2014 | |||||||||||||
First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
Rental income | $ | 59,820 | $ | 62,428 | $ | 64,158 | $ | 64,625 | |||||
Net income | 15,190 | 14,608 | 12,622 | 14,114 | |||||||||
Net income per common share (basic and diluted) | 0.28 | 0.27 | 0.19 | 0.20 | |||||||||
Common distributions paid | 0.43 | 0.43 | 0.43 | 0.43 | |||||||||
2013 | |||||||||||||
First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
Rental income | $ | 56,304 | $ | 55,934 | $ | 56,401 | $ | 58,271 | |||||
Net income | 24,726 | 15,204 | 1,966 | 12,724 | |||||||||
Net income per common share (basic and diluted) | 0.45 | 0.28 | 0.04 | 0.23 | |||||||||
Common distributions paid | 0.43 | 0.43 | 0.43 | 0.43 | |||||||||
Pro_Forma_Information_unaudite1
Pro Forma Information (unaudited) (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Pro Forma Information (unaudited) | |||||||||
Schedule of pro forma results of operations | |||||||||
Years ended December 31, | |||||||||
2014 | 2013 | ||||||||
Total Revenues | $ | 258,604 | $ | 246,006 | |||||
Net income | 57,214 | 51,500 | |||||||
Per share data (basic and diluted): | |||||||||
Net income | $ | 0.93 | $ | 0.94 | |||||
Organization_Details
Organization (Details) (USD $) | 3 Months Ended | ||
Dec. 31, 2014 | Jul. 29, 2014 | Dec. 31, 2013 | |
Organization | |||
Number of properties owned | 72 | ||
Number of buildings | 92 | ||
Number of states in which owned properties located | 31 | ||
Rentable area of properties (in square feet) | 11,000,000 | ||
Common shares of beneficial interest, par value (in dollars per share) | $0.01 | $0.01 | $0.01 |
Discontinued operations | |||
Organization | |||
Number of properties owned | 1 | ||
Number of buildings | 1 | ||
SIR | |||
Organization | |||
SIR Common shares of beneficial interest acquired pursuant to stock purchase agreement | 21,500,000 | ||
Common shares of beneficial interest, par value (in dollars per share) | $0.01 | ||
Percentage of interest | 35.90% |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | |||
Summary of Significant Accounting Policies | |||
Percentage of Ownership in Subsidiaries | 100.00% | ||
Real Estate Properties | |||
Increases (decreases) to rental income from amortization of capitalized above market and below market leases | $868 | $1,123 | $2,056 |
Amortization of the value of leases | 27,713 | 21,608 | 19,507 |
Capitalized value of leases | 150,080 | 142,266 | |
Deferred Financing Fees | |||
Deferred financing fees, gross | 14,055 | 9,335 | |
Accumulated amortization of deferred financing fees | 1,273 | 5,424 | |
Future amortization of deferred financing fees | |||
2015 | 2,917 | ||
2016 | 2,637 | ||
2017 | 2,548 | ||
2018 | 2,548 | ||
2019 | 1,346 | ||
Thereafter | 786 | ||
Segment Reporting | |||
Number of business segments | 2 | ||
Minimum | Buildings and improvements | |||
Real Estate Properties | |||
Estimated useful lives | 7 years | ||
Maximum | Buildings and improvements | |||
Real Estate Properties | |||
Estimated useful lives | 40 years | ||
In place leases | |||
Real Estate Properties | |||
Amortization of the value of leases | 26,844 | 20,482 | 17,390 |
Continuing operations | |||
Projected future amortization of net intangible lease assets and liabilities, excluding those classified as discontinued operations | |||
2015 | 28,601 | ||
2016 | 26,001 | ||
2017 | 23,734 | ||
2018 | 19,462 | ||
2019 | 14,413 | ||
Thereafter | 21,945 | ||
Deferred Leasing Costs | |||
Deferred leasing costs, gross | 15,401 | 13,935 | |
Accumulated amortization of deferred leasing costs | 3,951 | 2,317 | |
Revenue Recognition | |||
Increase in rental income to record revenue on straight line basis | 4,501 | 2,739 | 3,428 |
Straight line rent receivables (liabilities) | 15,017 | 10,515 | |
Continuing operations | In place leases | |||
Real Estate Properties | |||
Capitalized value of leases | 198,157 | 167,256 | |
Accumulated amortization of capitalized lease values | 68,829 | 49,207 | |
Continuing operations | Above market lease | |||
Real Estate Properties | |||
Capitalized value of leases | 39,040 | 38,487 | |
Accumulated amortization of capitalized lease values | 18,288 | 14,271 | |
Continuing operations | Below market lease | |||
Real Estate Properties | |||
Capitalized value of leases | 26,605 | 27,304 | |
Accumulated amortization of capitalized lease values | 10,681 | 8,220 | |
Discontinued operations | |||
Future amortization of deferred leasing costs, excluding those classified as discontinued operations | |||
2015 | 2,035 | ||
2016 | 1,915 | ||
2017 | 1,459 | ||
2018 | 1,306 | ||
2019 | 1,205 | ||
Thereafter | $3,530 |
Per_Common_Share_Amounts_Detai
Per Common Share Amounts (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Per Common Share Amounts | |||
Weighted Average Number of Shares Outstanding, Basic | 61,313 | 54,606 | 48,558 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 86 | 79 | 86 |
Weighted Average Number of Shares Outstanding, Diluted | 61,399 | 54,685 | 48,644 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 |
Real_Estate_Properties_Details
Real Estate Properties (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | 31-May-14 | Sep. 30, 2014 | Dec. 31, 2014 | Aug. 31, 2014 |
lease | sqft | Agency | sqft | building | |||
sqft | sqft | sqft | |||||
building | |||||||
property | |||||||
Real estate properties | |||||||
Number of properties owned | 72 | 72 | |||||
Number of buildings | 92 | 92 | |||||
Total real estate properties, at cost, gross | $1,682,480 | $1,568,562 | $1,682,480 | ||||
Number of leases entered | 50 | ||||||
Weighted average lease term | 5 years 4 months 24 days | ||||||
Expenditures committed on leases | 12,416 | ||||||
Committed but unspent tenant related obligations estimated | 7,545 | 7,545 | |||||
Square Feet | 632,376 | ||||||
Rentable square feet of properties | 11,000,000 | 11,000,000 | |||||
Loss on impairment recognized | 2,016 | ||||||
Net book value | 1,462,689 | 1,380,927 | 1,462,689 | ||||
Increase in carrying value of assets held for sale | 2,344 | ||||||
Gain (loss) on sale of properties | 774 | 8,168 | |||||
Future minimum lease payments related to properties excluding discontinued operations, scheduled to be received during the current terms of the existing leases | |||||||
2014 | 222,845 | 222,845 | |||||
2015 | 207,019 | 207,019 | |||||
2016 | 180,634 | 180,634 | |||||
2017 | 151,512 | 151,512 | |||||
2018 | 123,106 | 123,106 | |||||
Thereafter | 262,559 | 262,559 | |||||
Total future minimum lease payments | 1,147,675 | 1,147,675 | |||||
Balance Sheet: | |||||||
Real estate properties | 29,896 | 29,896 | |||||
Rents receivable, net | 605 | 605 | |||||
Other assets, net | 2,296 | 2,296 | |||||
Assets of Disposal Group, Including Discontinued Operation, Total | 13,165 | 25,997 | 13,165 | ||||
Other liabilities | 343 | 343 | |||||
Liabilities of Disposal Group, Including Discontinued Operation, Total | 150 | 276 | 150 | ||||
Continuing operations | |||||||
Real estate properties | |||||||
Number of properties owned | 1 | 1 | |||||
Number of buildings | 1 | 1 | |||||
Total real estate properties, at cost, gross | 1,712,776 | 1,712,776 | |||||
Discontinued operations | |||||||
Real estate properties | |||||||
Number of properties owned | 1 | 1 | |||||
Number of buildings | 1 | 1 | |||||
Office | |||||||
Real estate properties | |||||||
Number of properties owned | 4 | 4 | |||||
Number of buildings | 5 | 5 | |||||
Acquisition | |||||||
Real estate properties | |||||||
Number of properties acquired or agreed to be acquired | 4 | 4 | |||||
Number of buildings acquired or agreed to be acquired | 5 | 5 | |||||
Purchase Price | 167,525 | ||||||
Acquisition | Office | |||||||
Real estate properties | |||||||
Number of properties owned | 4 | 4 | |||||
Number of buildings | 5 | 5 | |||||
Purchase Price | 167,525 | ||||||
Amount of mortgage debt assumed in contract purchase price | 97,524 | 97,524 | |||||
Five buildings | |||||||
Real estate properties | |||||||
Square Feet | 730,193 | ||||||
Purchase Price | 167,525 | ||||||
Land | 16,561 | 16,561 | |||||
Buildings and Improvements | 114,844 | 114,844 | |||||
Acquired Leases | 39,712 | 39,712 | |||||
Acquired Lease Obligations | -445 | -445 | |||||
Other Assumed Liabilities | -326 | -326 | |||||
Premium on assumed debt | -3,147 | -3,147 | |||||
Fairfax, VA | Office | |||||||
Real estate properties | |||||||
Number of properties owned | 1 | ||||||
Number of buildings | 1 | ||||||
Fairfax, VA | Acquisition | Office | U.S. Government | |||||||
Real estate properties | |||||||
Purchase Price | 19,775 | ||||||
Percentage of property leased | 100.00% | ||||||
Amount of mortgage debt assumed in contract purchase price | 14,524 | ||||||
Rentable square feet of properties | 83,130 | ||||||
Fairfax, VA | One building | Office | |||||||
Real estate properties | |||||||
Square Feet | 83,130 | ||||||
Purchase Price | 19,775 | ||||||
Land | 2,964 | ||||||
Buildings and Improvements | 12,840 | ||||||
Acquired Leases | 3,971 | ||||||
Other Assumed Liabilities | -233 | ||||||
Richmond VA | Office | |||||||
Real estate properties | |||||||
Number of properties owned | 1 | ||||||
Number of buildings | 1 | ||||||
Richmond VA | Acquisition | Office | Commonwealth of Virginia and occupied by six state agencies | |||||||
Real estate properties | |||||||
Purchase Price | 22,500 | ||||||
Percentage of property leased | 94.60% | ||||||
Rentable square feet of properties | 173,932 | ||||||
Number of tenants | 6 | ||||||
Richmond VA | One building | Office | |||||||
Real estate properties | |||||||
Square Feet | 173,932 | ||||||
Purchase Price | 22,500 | ||||||
Land | 2,614 | ||||||
Buildings and Improvements | 15,930 | ||||||
Acquired Leases | 4,003 | ||||||
Acquired Lease Obligations | -47 | ||||||
Reston, VA | Acquisition | Office | U.S. Government | |||||||
Real estate properties | |||||||
Purchase Price | 112,250 | ||||||
Percentage of property leased | 100.00% | ||||||
Amount of mortgage debt assumed in contract purchase price | 83,000 | ||||||
Rentable square feet of properties | 406,388 | ||||||
Reston, VA | Two buildings | Office | |||||||
Real estate properties | |||||||
Square Feet | 406,388 | ||||||
Purchase Price | 112,250 | ||||||
Land | 9,066 | ||||||
Buildings and Improvements | 78,658 | ||||||
Acquired Leases | 28,071 | ||||||
Acquired Lease Obligations | -398 | ||||||
Other Assumed Liabilities | -93 | ||||||
Premium on assumed debt | -3,147 | ||||||
Phoenix, AZ | Office | |||||||
Real estate properties | |||||||
Number of properties owned | 1 | ||||||
Number of buildings | 1 | ||||||
Phoenix, AZ | Acquisition | Office | State of Arizona | |||||||
Real estate properties | |||||||
Purchase Price | 13,000 | ||||||
Percentage of property leased | 100.00% | ||||||
Rentable square feet of properties | 66,743 | ||||||
Phoenix, AZ | One building | Office | |||||||
Real estate properties | |||||||
Square Feet | 66,743 | ||||||
Purchase Price | 13,000 | ||||||
Land | 1,917 | ||||||
Buildings and Improvements | 7,416 | ||||||
Acquired Leases | 3,667 | ||||||
Disposal Group, Not Discontinued Operations [Member] | Riverdale, MD | Office | U.S. Government | |||||||
Real estate properties | |||||||
Number of buildings | 1 | ||||||
Loss on impairment recognized | 2,016 | ||||||
Option purchase price | 30,600 | 30,600 | |||||
Net book value | $30,448 | ||||||
Rentable square feet of properties held for sale | 337,500 |
Real_Estate_Properties_Details1
Real Estate Properties (Details 2) | 3 Months Ended |
Dec. 31, 2014 | |
tenant | |
Concentration risk relating to future minimum lease payments | |
Number of State Governments | 12 |
Future minimum lease payments | Tenant concentration | |
Concentration risk relating to future minimum lease payments | |
Concentration risk, percentage | 14.10% |
Concentration risk, percentage for termination right exercisable in 2015 | 1.80% |
Concentration risk, percentage for termination right exercisable in 2016 | 5.90% |
Concentration risk, percentage for termination right exercisable in 2017 | 3.10% |
Concentration risk, percentage for termination right exercisable in 2018 | 1.60% |
Concentration risk, percentage for termination right exercisable in 2019 | 9.40% |
Concentration risk, percentage for termination right exercisable in 2020 | 6.70% |
Concentration risk, percentage for termination right exercisable in 2022 | 1.50% |
Concentration risk, percentage for termination right exercisable in 2023 | 2.20% |
Number of State Governments | 13 |
Total future minimum lease payment percent for government tenants with early termination rights for lack of approved funding | 5.00% |
Real_Estate_Properties_Details2
Real Estate Properties (Details 3) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Feb. 28, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Apr. 30, 2014 |
building | building | building | |||||||
sqft | sqft | sqft | |||||||
Real estate properties | |||||||||
Number of Buildings | 92 | 92 | |||||||
Rentable square feet of properties | 11,000,000 | 11,000,000 | |||||||
Balance Sheets: | |||||||||
Real estate properties | $29,896 | $29,896 | |||||||
Rents receivable, net | 605 | 605 | |||||||
Other assets, net | 2,296 | 2,296 | |||||||
Assets of property held for sale | 32,797 | 32,797 | |||||||
Assets of Disposal Group, Including Discontinued Operation, Total | 13,165 | 25,997 | 13,165 | ||||||
Other liabilities | 343 | 343 | |||||||
Liabilities of property held for sale | 343 | 343 | |||||||
Liabilities of Disposal Group, Including Discontinued Operation, Total | 150 | 276 | 150 | ||||||
Statement of Operations: | |||||||||
Net book value | 1,462,689 | 1,380,927 | 1,462,689 | ||||||
Income (loss) from discontinued operations | 3,498 | -889 | 900 | ||||||
Real estate properties | 29,896 | 29,896 | |||||||
Rents receivable, net | 605 | 605 | |||||||
Other assets, net | 2,296 | 2,296 | |||||||
Assets of Disposal Group, Including Discontinued Operation, Total | 13,165 | 25,997 | 13,165 | ||||||
Other liabilities | 343 | 343 | |||||||
Liabilities of Disposal Group, Including Discontinued Operation, Total | 150 | 276 | 150 | ||||||
Office | |||||||||
Real estate properties | |||||||||
Number of Buildings | 5 | 5 | |||||||
Office | Phoenix, AZ | |||||||||
Real estate properties | |||||||||
Number of Buildings | 1 | ||||||||
Discontinued operations | |||||||||
Balance Sheets: | |||||||||
Real estate properties | 12,260 | 25,574 | 12,260 | ||||||
Rents receivable, net | 782 | 381 | 782 | ||||||
Other assets, net | 123 | 42 | 123 | ||||||
Assets of Disposal Group, Including Discontinued Operation, Total | 13,165 | 25,997 | 13,165 | ||||||
Other liabilities | 150 | 276 | 150 | ||||||
Liabilities of Disposal Group, Including Discontinued Operation, Total | 150 | 276 | 150 | ||||||
Statement of Operations: | |||||||||
Rental income | 4,580 | 7,376 | 1,673 | ||||||
Real estate taxes | -678 | -928 | -427 | ||||||
Utility expenses | -539 | -1,043 | -226 | ||||||
Other operating expenses | -966 | -1,484 | -459 | ||||||
Depreciation and amortization | -1,025 | -2,096 | |||||||
General and administrative | -287 | -431 | -181 | ||||||
Loss on asset impairment from discontinued operations | -10,142 | -494 | |||||||
Increase in carrying value of asset held for sale | 2,344 | ||||||||
Net gain on sale of properties | 8,168 | 774 | |||||||
Income (loss) from discontinued operations | -889 | 900 | 3,498 | ||||||
Real estate properties | 12,260 | 25,574 | 12,260 | ||||||
Rents receivable, net | 782 | 381 | 782 | ||||||
Other assets, net | 123 | 42 | 123 | ||||||
Assets of Disposal Group, Including Discontinued Operation, Total | 13,165 | 25,997 | 13,165 | ||||||
Other liabilities | 150 | 276 | 150 | ||||||
Liabilities of Disposal Group, Including Discontinued Operation, Total | 150 | 276 | 150 | ||||||
Discontinued operations | Office | Phoenix, AZ | |||||||||
Real estate properties | |||||||||
Number of Buildings | 1 | ||||||||
Rentable square feet of properties | 97,145 | ||||||||
Balance Sheets: | |||||||||
Real estate properties | 2,300 | 4,644 | |||||||
Statement of Operations: | |||||||||
Loss on asset impairment from discontinued operations | 8,344 | ||||||||
Increase in carrying value of asset held for sale | 2,344 | ||||||||
Net gain on sale of properties | 0 | ||||||||
Real Estate Aggregate Sales Price | 5,000 | ||||||||
Real estate properties | 2,300 | 4,644 | |||||||
Discontinued operations | Office | San Diego, CA | |||||||||
Real estate properties | |||||||||
Number of Buildings | 1 | ||||||||
Rentable square feet of properties | 94,272 | ||||||||
Statement of Operations: | |||||||||
Net gain on sale of properties | 774 | ||||||||
Real Estate Aggregate Sales Price | 12,100 | ||||||||
Discontinued operations | Office | Falls Church, VA | |||||||||
Real estate properties | |||||||||
Number of Buildings | 1 | ||||||||
Rentable square feet of properties | 164,746 | ||||||||
Statement of Operations: | |||||||||
Real Estate Aggregate Sales Price | $16,500 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 0 Months Ended | 1 Months Ended | 2 Months Ended | 12 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 27 Months Ended | 3 Months Ended | 24 Months Ended | 3 Months Ended | ||||||||||
Jul. 29, 2014 | Jul. 31, 2014 | Feb. 19, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Jul. 09, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jul. 31, 2013 | 9-May-14 | Dec. 23, 2013 | Mar. 15, 2013 | Mar. 11, 2013 | Mar. 25, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Feb. 17, 2015 | Mar. 31, 2013 | Mar. 31, 2012 | |
trustee | company | company | company | |||||||||||||||||||
sqft | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Number disinterested Trustees for the approval process to be initiated | 0 | |||||||||||||||||||||
Number of shares issued | 7,749 | 38,559 | ||||||||||||||||||||
Rentable square feet of properties | 11,000,000 | 11,000,000 | 11,000,000 | |||||||||||||||||||
Percentage of interest in subsidiaries | 100.00% | |||||||||||||||||||||
Par value of SIR common shares of beneficial interest acquired pursuant to stock purchase agreement (in dollars per share) | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | ||||||||||||||||
Number of common shares sold in public offering | 15,525,000 | 15,525,000 | ||||||||||||||||||||
Investment at carrying value | $680,137,000 | $680,137,000 | $680,137,000 | |||||||||||||||||||
Recognized income (loss) related to investment | 10,963,000 | 334,000 | 316,000 | |||||||||||||||||||
Aggregate coverage of combined directors' and officers' liability insurance policy purchased by the related party | 10,000,000 | |||||||||||||||||||||
SIR | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Number of common shares sold in public offering | 67,947 | |||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 35.90% | 35.90% | 35.90% | 35.90% | 24.30% | |||||||||||||||||
Percentage of interest | 35.90% | 35.90% | 35.90% | 35.90% | 24.30% | |||||||||||||||||
Investment at carrying value | 680,137,000 | 680,137,000 | 680,137,000 | |||||||||||||||||||
Recognized income (loss) related to investment | 87,000 | 334,000 | 269,000 | 17,113,000 | ||||||||||||||||||
EQC | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Percentage of interest in subsidiaries | 100.00% | |||||||||||||||||||||
EQC | SIR | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Cash purchase price excluding accrued dividends | 677,500,000 | |||||||||||||||||||||
Cash purchase price excluding accrued dividends (in dollars per share) | $31.51 | |||||||||||||||||||||
Accrued dividends | 11,300,000 | |||||||||||||||||||||
Accrued dividends (in dollars per share) | $0.53 | |||||||||||||||||||||
Cash purchase price including accrued dividends | 688,800,000 | |||||||||||||||||||||
SIR Common shares of beneficial interest acquired pursuant to stock purchase agreement | 21,500,000 | |||||||||||||||||||||
Acquisition | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Number of Properties Acquired | 4 | 4 | 4 | |||||||||||||||||||
Share Award Plan | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Granted (in shares) | 63,650 | 58,350 | 93,058 | |||||||||||||||||||
RMR | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Number of agreements to avail management and administrative services | 2 | 2 | 2 | |||||||||||||||||||
Number Managing Trustees as Chairman, majority owner and employee of affiliated entity | 1 | |||||||||||||||||||||
Business management fees | 10,226,000 | 9,341,000 | 9,077,000 | |||||||||||||||||||
Property management and construction supervision fees | 8,203,000 | 7,877,000 | 7,018,000 | |||||||||||||||||||
Number of other companies to whom management services were provided by related party | 5 | 4 | 5 | |||||||||||||||||||
Premium paid for combined directors' and officers' liability insurance policy | 50,000 | |||||||||||||||||||||
Aggregate coverage of combined directors' and officers' liability insurance policy purchased by the related party | 10,000,000 | |||||||||||||||||||||
Aggregate additional coverage of combined directors' and officers' liability insurance policy purchased by the related party | 20,000,000 | 5,000 | ||||||||||||||||||||
Aggregate non-indemnifiable coverage of combined directors' and officers' liability insurance policy purchased by the related party | 5,000,000 | |||||||||||||||||||||
Premium payable for combined directors' and officers' liability insurance policy | 479,000 | |||||||||||||||||||||
Base management fee payable as a percentage of aggregate book value of real estate assets or transferred assets | 0.50% | 0.50% | 0.50% | |||||||||||||||||||
Base management fee payable as a percentage of average historical cost of real estate investments, excluding transferred assets for investments up to specified amount | 0.70% | 0.70% | 0.70% | |||||||||||||||||||
Threshold amount of real estate investments for payment of base management fee | 250,000,000 | 250,000,000 | 250,000,000 | |||||||||||||||||||
Base management fee payable as a percentage of average historical cost of real estate investments, excluding transferred assets for investments exceeding specified amount | 0.50% | 0.50% | ||||||||||||||||||||
Base business management fee payable in common shares (as a percent) | 42442.00% | 42442.00% | 42442.00% | |||||||||||||||||||
Portion of shares issued in payment of an incentive management fee | 20230.00% | 39141.00% | ||||||||||||||||||||
Incentive fee as a percentage of product of weighted average diluted outstanding common shares and excess of FFO per share | 15.00% | 15.00% | ||||||||||||||||||||
Incentive fee paid in common shares maximum (in dollars per share) | $0.02 | $0.02 | ||||||||||||||||||||
Incentive fee payable | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Management fees payable under property management agreement as a percentage of gross rents | 3.00% | 3.00% | 3.00% | |||||||||||||||||||
Construction supervision fees payable under property management agreement as a percentage of construction costs | 5.00% | 5.00% | 5.00% | |||||||||||||||||||
Pro rata share of RMR's internal audit costs | 286,000 | 203,000 | 193,000 | |||||||||||||||||||
Period by which business management agreement and property management agreement get automatically renewed | 1 year | |||||||||||||||||||||
Aggregate coverage of separate directors' and officers' liability insurance policy purchased | 5,000 | |||||||||||||||||||||
Premium paid in connection with the renewal, including taxes and fees | 333,000 | |||||||||||||||||||||
RMR | SIR | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Threshold common share ownership before interested stockholder status exemption in Maryland | 10.00% | |||||||||||||||||||||
RMR | EQC | SIR | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Percentage of the product of the number of SIR common shares sold in the transaction times the excess of the price per share paid by the purchaser and $31.51 | 50.00% | |||||||||||||||||||||
SIR Common shares of beneficial interest acquired pursuant to stock purchase agreement | 500,000 | |||||||||||||||||||||
RMR | Office | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Rentable square feet of properties | 2,433 | 2,433 | 2,433 | |||||||||||||||||||
Number of regional offices leased | 2 | |||||||||||||||||||||
Rental income earned | 61,000 | 31,000 | 32,000 | |||||||||||||||||||
RMR | Share Award Plan | Officers and employees | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Granted (in shares) | 51,150 | 48,350 | 43,917 | |||||||||||||||||||
Aggregate market value of shares awarded | 1,191,000 | 1,142,000 | 1,043,000 | |||||||||||||||||||
Restricted shares vesting terms | 0.2 | |||||||||||||||||||||
Portion of the awards granted which will vest on each of the next four anniversaries of the grant date | 0.2 | |||||||||||||||||||||
Number of anniversaries of the grant date over which the awards vest | 4 years | |||||||||||||||||||||
RMR | Minimum | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Threshold amount of average market capitalization for payment of base management fee | 250,000,000 | |||||||||||||||||||||
RMR | Amended Agreement | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Period before which the written notice is required to be given for cancellation of business management agreement and the property management agreement | 120 days | |||||||||||||||||||||
Period before which the written notice is required to be given for cancellation of business management agreement and the property management agreement before amendment of the agreement | 60 days | |||||||||||||||||||||
Number of business days before which the notice is required to be given for termination of property management agreement | 5 days | |||||||||||||||||||||
Termination fee factor | 2.75 | |||||||||||||||||||||
Number consecutive months for average fees and expenses | 24 months | |||||||||||||||||||||
Termination of property management agreement in relation to business management agreement termination | 12 months | |||||||||||||||||||||
Number of months used to calculate property management termination fee | 6 months | |||||||||||||||||||||
Termination fee factor property management fee | 12 | |||||||||||||||||||||
Period over which transition services will be provided by the related party after termination of the agreement | 120 days | |||||||||||||||||||||
Base management fee payable as a percentage of aggregate book value of real estate assets or transferred assets | 0.50% | |||||||||||||||||||||
Base management fee payable as a percentage of average historical cost of real estate investments, excluding transferred assets for investments up to specified amount | 0.70% | |||||||||||||||||||||
Base management fee payable as a percentage of average historical cost of real estate investments, excluding transferred assets for investments exceeding specified amount | 0.50% | |||||||||||||||||||||
Base management fee payable as a percentage of average closing price per share of common shares on NYSE | 0.70% | |||||||||||||||||||||
Base management fee payable as a percentage of average market capitalization exceeding specified amount | 0.50% | |||||||||||||||||||||
Base business management fee payable in cash (as a percent) | 90.00% | |||||||||||||||||||||
Base business management fee payable in common shares (as a percent) | 10.00% | |||||||||||||||||||||
Incentive management fee payable (as a percent) | 12.00% | |||||||||||||||||||||
Measurement period for incentive management fee | 3 years | |||||||||||||||||||||
Measurement period for calculating 2014 management fee | 1 year | |||||||||||||||||||||
Measurement period for calculating 2015 management fee | 2 years | |||||||||||||||||||||
Portion of shares issued in payment of an incentive management fee | 33.30% | |||||||||||||||||||||
Portion of remaining shares to be vested in equal annual installments | 66.60% | |||||||||||||||||||||
Number of equal annual installments for vesting of common shares | 2 | |||||||||||||||||||||
RMR | Amended Agreement | Maximum | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Threshold amount of real estate investments for payment of base management fee | 250,000,000 | |||||||||||||||||||||
Base management fee payable, average market capitalization | 250,000,000 | |||||||||||||||||||||
RMR | Amended Agreement | Minimum | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Threshold amount of average market capitalization for payment of base management fee | 250,000,000 | |||||||||||||||||||||
EQC | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Number Managing Trustees as Chairman, majority owner and employee of affiliated entity | 1 | |||||||||||||||||||||
Common shares registration and sale expenses paid by related party | 310,000 | |||||||||||||||||||||
Number of common shares sold in public offering | 9,950,000 | |||||||||||||||||||||
AIC | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 14.30% | |||||||||||||||||||||
Percentage of interest | 14.30% | |||||||||||||||||||||
Coverage of purchased property insurance | 500,000,000 | 500,000,000 | ||||||||||||||||||||
Premium for property insurance | 1,161,000 | 410,000 | ||||||||||||||||||||
Amount invested in equity investee | 6,019,000 | 6,019,000 | 6,019,000 | |||||||||||||||||||
Investment at carrying value | 6,946,000 | 6,031,000 | 5,747,000 | 6,946,000 | 6,031,000 | 6,946,000 | ||||||||||||||||
Recognized income (loss) related to investment | 87,000 | 334,000 | 316,000 | |||||||||||||||||||
Number of other companies to whom management services were provided by related party | 4 | |||||||||||||||||||||
Premium paid in connection with the renewal, including taxes and fees | 526,000 | |||||||||||||||||||||
Number of other companies owning outstanding shares | 6 | |||||||||||||||||||||
Shares of related party purchased, formerly owned by former parent company | 2,857 | |||||||||||||||||||||
Value of shares of related party purchased, formerly owned by former parent company | 825,000 | |||||||||||||||||||||
SIR | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Par value of SIR common shares of beneficial interest acquired pursuant to stock purchase agreement (in dollars per share) | $0.01 | $0.01 | $0.01 | |||||||||||||||||||
Equity Method Investment, Ownership Percentage | 35.90% | 35.90% | 35.90% | |||||||||||||||||||
SIR Common shares of beneficial interest acquired pursuant to stock purchase agreement | 21,500,000 | |||||||||||||||||||||
Percentage of interest | 35.90% | 35.90% | 35.90% | |||||||||||||||||||
Period of standstill provision pursuant to which the counterparty agreed not to make unsolicited proposals to acquire entities as specified | 36 months | |||||||||||||||||||||
Number of independent trustees of the entity who also serve as independent trustees of the related party | 1 | |||||||||||||||||||||
SNH | ||||||||||||||||||||||
Related Party Transaction | ||||||||||||||||||||||
Number of independent trustees of the entity who also serve as independent trustees of the related party | 2 |
Concentration_Details
Concentration (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Concentration | |||
Number of properties owned | 72 | ||
Number of buildings | 92 | ||
Number of states in which acquired properties located | 31 | ||
Number of state governments | 12 | ||
Annualized rental income, excluding properties classified as discontinued operations | Maryland | |||
Concentration | |||
Annualized Rental income percent | 11.2 | ||
Annualized rental income, excluding properties classified as discontinued operations | California | |||
Concentration | |||
Annualized Rental income percent | 11 | ||
Annualized rental income, excluding properties classified as discontinued operations | Virginia | |||
Concentration | |||
Annualized Rental income percent | 9.8 | ||
Annualized rental income, excluding properties classified as discontinued operations | District of Columbia | |||
Concentration | |||
Annualized Rental income percent | 9.9 | ||
Annualized rental income, excluding properties classified as discontinued operations | Georgia | |||
Concentration | |||
Annualized Rental income percent | 8.9 | ||
Annualized rental income, excluding properties classified as discontinued operations | New York | |||
Concentration | |||
Annualized Rental income percent | 8.2 | ||
Annualized rental income, excluding properties classified as discontinued operations | Massachusetts | |||
Concentration | |||
Annualized Rental income percent | 5.5 | ||
Annualized rental income, excluding properties classified as discontinued operations | Tenant concentration | U.S. Government, state governments and the United Nations | |||
Concentration | |||
Annualized Rental income percent | 93 | 92.6 | 93.8 |
Annualized rental income, excluding properties classified as discontinued operations | Tenant concentration | U.S. Government | |||
Concentration | |||
Annualized Rental income percent | 69 | 69 | 71 |
Indebtedness_Details
Indebtedness (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 11 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jul. 29, 2014 | Jul. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | Nov. 21, 2014 | Nov. 20, 2014 | Dec. 31, 2013 | Nov. 20, 2014 | Aug. 18, 2014 | Mar. 31, 2014 | Jul. 09, 2014 | 31-May-14 |
loan | ||||||||||||
property | ||||||||||||
building | ||||||||||||
Indebtedness | ||||||||||||
Unsecured revolving credit facility | $157,000 | |||||||||||
Unsecured term loan | 550,000 | 350,000 | ||||||||||
Senior Notes | 347,423 | |||||||||||
Mortgage notes payable, including premiums | 187,694 | 90,727 | ||||||||||
Total | 1,085,117 | 597,727 | ||||||||||
Number of common shares sold in public offering | 15,525,000 | 15,525,000 | ||||||||||
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 | $0.01 | |||||||||
Price per share of shares sold | $23.50 | $23.50 | ||||||||||
Net proceeds on sale of shares | 349,787 | 349,787 | 349,787 | 166,718 | ||||||||
Loss on early extinguishment of debt | 1,307 | |||||||||||
Number of assumed secured mortgage loans | 6 | |||||||||||
Aggregate net book value of secured properties | 258,869 | |||||||||||
Number of properties secured by mortgage notes | 6 | |||||||||||
Number of buildings secured by mortgage notes | 8 | |||||||||||
Unsecured revolving credit facility | ||||||||||||
Indebtedness | ||||||||||||
Unsecured revolving credit facility | 0 | 157,000 | ||||||||||
Interest rate (as a percent) | 1.40% | |||||||||||
Maximum borrowing capacity on revolving credit facility | 750,000 | 550,000 | 550,000 | |||||||||
Revolving credit facility, interest rate basis | LIBOR | |||||||||||
Option to extend the maturity date subject to certain conditions and the payment of a fee | 1 year | |||||||||||
Interest rate premium (as a percent) | 1.25% | |||||||||||
Facility fee (as a percent) | 0.25% | |||||||||||
The weighted average annual interest rate (as a percent) | 1.80% | 1.70% | 1.70% | |||||||||
Amount available to be drawn | 750,000 | |||||||||||
Unsecured term loan | ||||||||||||
Indebtedness | ||||||||||||
Face amount | 350,000 | 350,000 | ||||||||||
Unsecured revolving credit and unsecured term loan | ||||||||||||
Indebtedness | ||||||||||||
Loss on early extinguishment of debt | 766 | |||||||||||
New credit facilities | ||||||||||||
Indebtedness | ||||||||||||
Face amount | 1,300,000 | |||||||||||
Maximum borrowing capacity on debt instruments may be increased under certain conditions | 2,500,000 | |||||||||||
Unsecured term loan, due in 2017 | ||||||||||||
Indebtedness | ||||||||||||
Unsecured term loan | 350,000 | |||||||||||
Term loan, interest rate basis | LIBOR | |||||||||||
Interest rate premium (as a percent) | 1.75% | |||||||||||
The weighted average annual interest rate (as a percent) | 2.00% | 1.90% | 1.90% | |||||||||
Unsecured term loan, due in 2020 | ||||||||||||
Indebtedness | ||||||||||||
Face amount | 300,000 | 300,000 | ||||||||||
Unsecured term loan | 300,000 | |||||||||||
Interest rate (as a percent) | 1.60% | |||||||||||
Term loan, interest rate basis | LIBOR | |||||||||||
Interest rate premium (as a percent) | 1.40% | |||||||||||
The weighted average annual interest rate (as a percent) | 1.90% | |||||||||||
Unsecured term loan, due in 2022 | ||||||||||||
Indebtedness | ||||||||||||
Face amount | 250,000 | |||||||||||
Unsecured term loan | 250,000 | |||||||||||
Interest rate (as a percent) | 2.00% | |||||||||||
Effective interest rate (as a percent) | 2.30% | |||||||||||
Term loan, interest rate basis | LIBOR | |||||||||||
Interest rate premium (as a percent) | 1.80% | |||||||||||
Loan prepayment premium prior to November 22, 2015 (as a percent) | 2.00% | |||||||||||
Loan prepayment premium prior to November 21, 2016 (as a percent) | 1.00% | |||||||||||
Senior Unsecured Note 3.75 Percent Due In 2019 | ||||||||||||
Indebtedness | ||||||||||||
Senior Notes | 347,423 | |||||||||||
Senior Notes Issued Amount | 350,000 | |||||||||||
Interest rate (as a percent) | 3.75% | 3.75% | ||||||||||
Unamortized fair value discount included in mortgage notes | 2,577 | |||||||||||
Net proceeds from issance of debt | 344,293 | |||||||||||
Loss on early extinguishment of debt | 541 | |||||||||||
Mortgage note payable, 5.55% interest rate, due in 2016 | ||||||||||||
Indebtedness | ||||||||||||
Mortgage notes payable, including premiums | 85,167 | |||||||||||
Interest rate (as a percent) | 5.55% | |||||||||||
Unamortized fair value premium included in mortgage notes | 2,167 | |||||||||||
Mortgage note payable, 5.55% interest rate, due in 2016 | Acquisition | ||||||||||||
Indebtedness | ||||||||||||
Mortgage notes payable, including premiums | 83,000 | |||||||||||
Unamortized fair value premium included in mortgage notes | 3,147 | |||||||||||
Effective interest rate (as a percent) | 3.50% | |||||||||||
5.73% Mortgage notes due in 2015 | ||||||||||||
Indebtedness | ||||||||||||
Mortgage notes payable, including premiums | 47,418 | 48,377 | ||||||||||
Interest rate (as a percent) | 5.73% | |||||||||||
Unamortized fair value premium included in mortgage notes | 177 | |||||||||||
6.21% Mortgage notes due in 2016 | ||||||||||||
Indebtedness | ||||||||||||
Mortgage notes payable, including premiums | 23,833 | 24,147 | ||||||||||
Interest rate (as a percent) | 6.21% | |||||||||||
Mortgage note payable, 5.88% interest rate, due in 2021 | ||||||||||||
Indebtedness | ||||||||||||
Mortgage notes payable, including premiums | 14,374 | |||||||||||
Interest rate (as a percent) | 5.88% | |||||||||||
Mortgage note payable, 5.88% interest rate, due in 2021 | Acquisition | ||||||||||||
Indebtedness | ||||||||||||
Mortgage notes payable, including premiums | 14,524 | |||||||||||
Term of loan | 30 years | |||||||||||
7% Mortgage notes due in 2019 | ||||||||||||
Indebtedness | ||||||||||||
Mortgage notes payable, including premiums | 9,563 | 9,919 | ||||||||||
Interest rate (as a percent) | 7.00% | |||||||||||
Unamortized fair value premium included in mortgage notes | 605 | |||||||||||
8.15% Mortgage notes due in 2021 | ||||||||||||
Indebtedness | ||||||||||||
Mortgage notes payable, including premiums | 7,339 | 8,284 | ||||||||||
Interest rate (as a percent) | 8.15% | |||||||||||
Unamortized fair value premium included in mortgage notes | 398 | |||||||||||
Unsecured term loan, due in 2015 | ||||||||||||
Indebtedness | ||||||||||||
Face amount | $500,000 | |||||||||||
Term loan, interest rate basis | LIBOR | |||||||||||
Interest rate premium (as a percent) | 1.75% |
Fair_Value_of_Assets_and_Liabi2
Fair Value of Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 18, 2014 |
In Thousands, unless otherwise specified | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | $187,694 | $90,727 | |
Senior Notes | 347,423 | ||
Unsecured Debt | 550,000 | 350,000 | |
Senior Unsecured Note 3.75 Percent Due In 2019 | |||
Fair Value of Financial Instruments | |||
Senior Notes | 347,423 | ||
Interest rate (as a percent) | 3.75% | 3.75% | |
Unamortized fair value discount included in mortgage notes | 2,577 | ||
Mortgage note payable, 5.55% interest rate, due in 2016 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 85,167 | ||
Interest rate (as a percent) | 5.55% | ||
Unamortized fair value premium included in mortgage notes | 2,167 | ||
5.73% Mortgage notes due in 2015 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 47,418 | 48,377 | |
Interest rate (as a percent) | 5.73% | ||
Unamortized fair value premium included in mortgage notes | 177 | ||
6.21% Mortgage notes due in 2016 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 23,833 | 24,147 | |
Interest rate (as a percent) | 6.21% | ||
Mortgage note payable, 5.88% interest rate, due in 2021 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 14,374 | ||
Interest rate (as a percent) | 5.88% | ||
7% Mortgage notes due in 2019 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 9,563 | 9,919 | |
Interest rate (as a percent) | 7.00% | ||
Unamortized fair value premium included in mortgage notes | 605 | ||
8.15% Mortgage notes due in 2021 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 7,339 | 8,284 | |
Interest rate (as a percent) | 8.15% | ||
Unamortized fair value premium included in mortgage notes | 398 | ||
Carrying Amount | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 535,117 | ||
Carrying Amount | Senior Unsecured Note 3.75 Percent Due In 2019 | |||
Fair Value of Financial Instruments | |||
Senior Notes | 347,423 | ||
Carrying Amount | Mortgage note payable, 5.55% interest rate, due in 2016 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 85,167 | ||
Carrying Amount | 5.73% Mortgage notes due in 2015 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 47,418 | ||
Carrying Amount | 6.21% Mortgage notes due in 2016 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 23,833 | ||
Carrying Amount | Mortgage note payable, 5.88% interest rate, due in 2021 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 14,374 | ||
Carrying Amount | 7% Mortgage notes due in 2019 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 9,563 | ||
Carrying Amount | 8.15% Mortgage notes due in 2021 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 7,339 | ||
Fair Value | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 548,407 | ||
Fair Value | Senior Unsecured Note 3.75 Percent Due In 2019 | |||
Fair Value of Financial Instruments | |||
Senior Notes | 356,129 | ||
Fair Value | Mortgage note payable, 5.55% interest rate, due in 2016 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 85,171 | ||
Fair Value | 5.73% Mortgage notes due in 2015 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 48,233 | ||
Fair Value | 6.21% Mortgage notes due in 2016 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 25,394 | ||
Fair Value | Mortgage note payable, 5.88% interest rate, due in 2021 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 15,249 | ||
Fair Value | 7% Mortgage notes due in 2019 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | 10,275 | ||
Fair Value | 8.15% Mortgage notes due in 2021 | |||
Fair Value of Financial Instruments | |||
Mortgage notes payable, including premiums | $7,956 |
Fair_Value_of_Assets_and_Liabi3
Fair Value of Assets and Liabilities (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value of Assets and Liabilities | ||
Property held for sale | $1,462,689 | $1,380,927 |
Nonrecurring | Fair Value | ||
Fair Value of Assets and Liabilities | ||
Property held for sale | 42,156 | |
Nonrecurring | Level 3 inputs | ||
Fair Value of Assets and Liabilities | ||
Property held for sale | 42,156 | |
Continuing operations | Nonrecurring | Fair Value | ||
Fair Value of Assets and Liabilities | ||
Property held for sale | 29,896 | |
Continuing operations | Nonrecurring | Level 3 inputs | ||
Fair Value of Assets and Liabilities | ||
Property held for sale | 29,896 | |
Discontinued operations | Nonrecurring | Fair Value | ||
Fair Value of Assets and Liabilities | ||
Property held for sale | 12,260 | |
Discontinued operations | Nonrecurring | Level 3 inputs | ||
Fair Value of Assets and Liabilities | ||
Property held for sale | $12,260 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (Share Award Plan, USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Awards | |||
Shares granted for equity compensation plan | 63,650 | 58,350 | 93,058 |
Number of Shares | |||
Unvested shares at the beginning of the period | 85,451 | 76,104 | 64,270 |
Granted (in shares) | 63,650 | 58,350 | 93,058 |
Shared forfeited (in shares) | -450 | -820 | |
Vested (in shares) | -58,763 | -48,553 | -80,404 |
Unvested shares at the end of the period | 90,338 | 85,451 | 76,104 |
Weighted Average Grant Date Fair Value | |||
Unvested shares at the beginning of the period (in dollars per share) | $23.71 | $23.82 | $23.89 |
Granted (in dollars per share) | $23.70 | $24.12 | $23.72 |
Shared forfeited (in dollars per share) | $23.68 | $23.99 | |
Vested (in dollars per share) | $24.17 | $24.38 | $23.76 |
Unvested shares at the end of the period (in dollars per share) | $23.40 | $23.71 | $23.82 |
Vesting schedule of unvested shares | |||
2015 (in shares) | 34,040 | ||
2016 (in shares) | 26,952 | ||
2017 (in shares) | 19,116 | ||
2018 (in shares) | 10,230 | ||
Share Awards, additional disclosures | |||
Estimated future compensation expense for the unvested shares | $2,079 | ||
Closing share price of the entity's common shares (in dollars per share) | $23.01 | ||
Weighted average period of recognition of compensation expenses | 22 months | ||
Compensation expense | 1,165 | 1,269 | 1,598 |
Shares available for issuance under the Award Plan | 1,659,562 | ||
Officers and employees | RMR | |||
Share Awards | |||
Shares granted for equity compensation plan | 51,150 | 48,350 | 43,917 |
Aggregate market value of shares granted under the Award Plan | 1,191 | 1,142 | 1,043 |
Number of Shares | |||
Granted (in shares) | 51,150 | 48,350 | 43,917 |
Trustees | |||
Share Awards | |||
Shares granted for equity compensation plan | 2,500 | 2,000 | 2,000 |
Aggregate market value of shares granted under the Award Plan | 318 | 266 | 224 |
Market value of common shares awarded to each trustee (in dollars) | $64 | $53 | $45 |
Number of Shares | |||
Granted (in shares) | 2,500 | 2,000 | 2,000 |
Shareholders_Equity_Details_2
Shareholders' Equity (Details 2) (USD $) | 0 Months Ended | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, except Share data, unless otherwise specified | Nov. 20, 2014 | Aug. 23, 2014 | Jul. 29, 2014 | 21-May-14 | Feb. 21, 2014 | Jul. 31, 2014 | Feb. 19, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 23, 2015 | Jul. 29, 2014 |
Distributions | ||||||||||||||||||||
Cash distribution to common shareholders (in dollars per share) | $0.43 | $0.43 | $0.43 | $0.43 | ||||||||||||||||
Distribution payable to common shareholders (in dollars per share) | $0.43 | |||||||||||||||||||
Number of shares issued | 7,749 | 38,559 | ||||||||||||||||||
Number of common shares sold in public offering | 15,525,000 | 15,525,000 | ||||||||||||||||||
Price per share of shares sold | $23.50 | $23.50 | ||||||||||||||||||
Net proceeds on sale of shares | $349,787 | $349,787 | $349,787 | $166,718 | ||||||||||||||||
Cash distribution per common share paid or accrued (in dollars per share) | $0.43 | $0.43 | $0.43 | $0.43 | $0.43 | $0.43 | $0.43 | $0.43 | $1.72 | $1.72 | $1.69 | |||||||||
Characterization of distributions paid or accrued as a percentage of ordinary income | 55.12% | 82.92% | 80.36% | |||||||||||||||||
Characterization of distributions paid or accrued as a percentage of return of capital | 41.94% | 9.55% | 19.64% | |||||||||||||||||
Characterization of distributions paid or accrued as a percentage of capital gain | 7.01% | |||||||||||||||||||
Characterization of distributions paid or accrued as a percentage of Internal Revenue Code section 1250 gain | 2.94% | 0.52% |
Equity_Investment_in_Select_In1
Equity Investment in Select Income REIT (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Jul. 29, 2014 | Jul. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Jan. 29, 2015 | Mar. 31, 2015 | Dec. 31, 2011 | Feb. 17, 2015 | Jul. 09, 2014 |
Equity Investment in Select Income REIT | |||||||||||||||||||
Investment at carrying value | $680,137 | $680,137 | $680,137 | ||||||||||||||||
Income (Loss) from Equity Method Investments | 10,963 | 334 | 316 | ||||||||||||||||
Number of common shares sold in public offering | 15,525,000 | 15,525,000 | |||||||||||||||||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | -53 | ||||||||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | 17,046 | ||||||||||||||||||
Equity Method Investment Summarized Balance Sheet Information Abstract | |||||||||||||||||||
Real estate properties, net | 1,462,689 | 1,380,927 | 1,462,689 | 1,380,927 | 1,462,689 | ||||||||||||||
Acquired real estate leases, net | 150,080 | 142,266 | 150,080 | 142,266 | 150,080 | ||||||||||||||
Cash and cash equivalents | 13,791 | 7,663 | 13,791 | 7,663 | 5,255 | 13,791 | 3,272 | ||||||||||||
Rents receivable, net | 36,239 | 33,350 | 36,239 | 33,350 | 36,239 | ||||||||||||||
Other assets, net | 12,205 | 25,031 | 12,205 | 25,031 | 12,205 | ||||||||||||||
Total assets | 2,427,615 | 1,632,452 | 2,427,615 | 1,632,452 | 2,427,615 | ||||||||||||||
Revolving credit facility | 157,000 | 157,000 | |||||||||||||||||
Term loan | 550,000 | 350,000 | 550,000 | 350,000 | 550,000 | ||||||||||||||
Mortgage notes payable, including premiums | 187,694 | 90,727 | 187,694 | 90,727 | 187,694 | ||||||||||||||
Assumed real estate lease obligations, net | 15,924 | 19,084 | 15,924 | 19,084 | 15,924 | ||||||||||||||
Other Liabilities | 26,471 | 23,216 | 26,471 | 23,216 | 26,471 | ||||||||||||||
Shareholders' equity | 1,297,449 | 989,675 | 1,297,449 | 989,675 | 1,027,451 | 1,297,449 | 891,668 | ||||||||||||
Total liabilities and shareholders' equity | 2,427,615 | 1,632,452 | 2,427,615 | 1,632,452 | 2,427,615 | ||||||||||||||
Income Statements: | |||||||||||||||||||
Real Estate Revenue, Net, Total | 64,625 | 64,158 | 62,428 | 59,820 | 58,271 | 56,401 | 55,934 | 56,304 | 251,031 | 226,910 | 203,700 | ||||||||
Depreciation and amortization | 66,593 | 55,699 | 49,070 | ||||||||||||||||
Acquisition related costs | 1,344 | 2,439 | 1,614 | ||||||||||||||||
General and administrative | 15,809 | 12,710 | 11,924 | ||||||||||||||||
Total expenses | 179,502 | 154,808 | 137,934 | ||||||||||||||||
Operating income | 71,529 | 72,102 | 65,766 | ||||||||||||||||
Interest Expense | 28,048 | 16,831 | 16,892 | ||||||||||||||||
Gains (Losses) on Extinguishment of Debt | -1,307 | ||||||||||||||||||
(Loss) income from continuing operations before income tax expense and equity in earnings of investees | 42,243 | 55,308 | 48,903 | ||||||||||||||||
Income tax expense | 117 | 133 | 159 | ||||||||||||||||
Equity in earnings of investees | 10,963 | 334 | 316 | ||||||||||||||||
Weighted average common shares outstanding (basic) (in shares) | 61,313,000 | 54,606,000 | 48,558,000 | ||||||||||||||||
Weighted average common shares outstanding (diluted) (in shares) | 61,399,000 | 54,685,000 | 48,644,000 | ||||||||||||||||
Net income, basic and diluted (in dollars per share) | $0.92 | $1 | $1.03 | ||||||||||||||||
SIR | |||||||||||||||||||
Equity Investment in Select Income REIT | |||||||||||||||||||
Equity investments, common shares owned | 21,500,000 | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 35.90% | 35.90% | 35.90% | 24.30% | 35.90% | ||||||||||||||
Investment at carrying value | 680,137 | 680,137 | 680,137 | ||||||||||||||||
Costs related to acquisition | 1,174 | ||||||||||||||||||
Equity Investments, market value | 524,815 | 524,815 | 524,815 | ||||||||||||||||
Amortization of the difference between carrying value and share of underlying equity | 6,237 | ||||||||||||||||||
Income (Loss) from Equity Method Investments | 87 | 334 | 269 | 17,113 | |||||||||||||||
The amount of investment in exceed the underlying equity of the investee | 154,413 | ||||||||||||||||||
Number of common shares sold in public offering | 67,947 | ||||||||||||||||||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | 53 | ||||||||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | 20,640 | ||||||||||||||||||
Equity Method Investment Summarized Balance Sheet Information Abstract | |||||||||||||||||||
Real estate properties, net | 1,772,510 | 1,579,234 | 1,772,510 | 1,579,234 | 1,772,510 | ||||||||||||||
Acquired real estate leases, net | 120,700 | 129,426 | 120,700 | 129,426 | 120,700 | ||||||||||||||
Cash and cash equivalents | 13,504 | 20,025 | 13,504 | 20,025 | 13,504 | ||||||||||||||
Rents receivable, net | 68,385 | 55,335 | 68,385 | 55,335 | 68,385 | ||||||||||||||
Other assets, net | 18,132 | 17,839 | 18,132 | 17,839 | 18,132 | ||||||||||||||
Total assets | 1,993,231 | 1,801,859 | 1,993,231 | 1,801,859 | 1,993,231 | ||||||||||||||
Revolving credit facility | 77,000 | 159,000 | 77,000 | 159,000 | 77,000 | ||||||||||||||
Term loan | 350,000 | 350,000 | 350,000 | 350,000 | 350,000 | ||||||||||||||
Mortgage notes payable, including premiums | 18,816 | 27,147 | 18,816 | 27,147 | 18,816 | ||||||||||||||
Assumed real estate lease obligations, net | 26,475 | 26,966 | 26,475 | 26,966 | 26,475 | ||||||||||||||
Other Liabilities | 40,493 | 40,055 | 40,493 | 40,055 | 40,493 | ||||||||||||||
Shareholders' equity | 1,480,447 | 1,198,691 | 1,480,447 | 1,198,691 | 1,480,447 | ||||||||||||||
Total liabilities and shareholders' equity | 1,993,231 | 1,801,859 | 1,993,231 | 1,801,859 | 1,993,231 | ||||||||||||||
Income Statements: | |||||||||||||||||||
Rental income | 189,743 | 159,011 | 105,559 | ||||||||||||||||
Tenant Reimbursements And Other Real Estate Revenue | 32,937 | 29,312 | 17,231 | ||||||||||||||||
Real Estate Revenue, Net, Total | 222,680 | 188,323 | 122,790 | ||||||||||||||||
Operating expenses | 40,799 | 36,382 | 23,796 | ||||||||||||||||
Depreciation and amortization | 41,054 | 31,091 | 14,860 | ||||||||||||||||
Acquisition related costs | 7,348 | 2,002 | 2,470 | ||||||||||||||||
General and administrative | 14,881 | 12,423 | 8,203 | ||||||||||||||||
Total expenses | 104,082 | 81,898 | 49,329 | ||||||||||||||||
Operating income | 118,598 | 106,425 | 73,461 | ||||||||||||||||
Interest Expense | -12,974 | -13,763 | -7,565 | ||||||||||||||||
Gains (Losses) on Extinguishment of Debt | 243 | ||||||||||||||||||
(Loss) income from continuing operations before income tax expense and equity in earnings of investees | 105,867 | 92,662 | 65,896 | ||||||||||||||||
Income tax expense | -175 | 96 | -290 | ||||||||||||||||
Equity in earnings of investees | 87 | 334 | 269 | 17,113 | |||||||||||||||
Income before gain on sale of property | 105,779 | 93,092 | 65,875 | ||||||||||||||||
Net gain on sale of properties from discontinued operations | 116 | ||||||||||||||||||
Net income | 105,895 | 93,092 | 65,875 | ||||||||||||||||
Weighted average common shares outstanding (basic) (in shares) | 55,964,000 | 44,539,000 | 27,117,000 | ||||||||||||||||
Weighted average common shares outstanding (diluted) (in shares) | 56,035,000 | 44,592,000 | 27,122,000 | ||||||||||||||||
Net income, basic and diluted (in dollars per share) | $1.89 | $2.09 | $2.43 | ||||||||||||||||
SIR | Subsequent event | |||||||||||||||||||
Equity Investment in Select Income REIT | |||||||||||||||||||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | $41,000 | ||||||||||||||||||
Number of shares issued to holders of CCIT common shares on acquisition | 28,400,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Information. | |||||||||||
Rental income | $64,625 | $64,158 | $62,428 | $59,820 | $58,271 | $56,401 | $55,934 | $56,304 | $251,031 | $226,910 | $203,700 |
Expenses: | |||||||||||
Real Estate Tax Expense | 28,389 | 25,710 | 22,485 | ||||||||
Utility expenses | 19,369 | 17,116 | 15,767 | ||||||||
Other operating expenses | 45,982 | 41,134 | 37,074 | ||||||||
Depreciation and amortization | 66,593 | 55,699 | 49,070 | ||||||||
Loss on asset impairment | 2,016 | ||||||||||
Acquisition related costs | 1,344 | 2,439 | 1,614 | ||||||||
General and administrative | 15,809 | 12,710 | 11,924 | ||||||||
Total expenses | 179,502 | 154,808 | 137,934 | ||||||||
Operating Income (Loss) | 71,529 | 72,102 | 65,766 | ||||||||
Investment Income, Interest | 69 | 37 | 29 | ||||||||
Interest expense | -28,048 | -16,831 | -16,892 | ||||||||
Loss on early extinguishment of debt | -1,307 | ||||||||||
Loss on issuance of shares by an equity investee | -53 | ||||||||||
Income from continuing operations before income tax expense and equity in earnings of investees | 42,243 | 55,308 | 48,903 | ||||||||
Income tax expense | -117 | -133 | -159 | ||||||||
Equity in earnings of investees | 10,963 | 334 | 316 | ||||||||
Income from continuing operations | 53,036 | 55,509 | 49,060 | ||||||||
Income (loss) from discontinued operations | 3,498 | -889 | 900 | ||||||||
Net income | 14,114 | 12,622 | 14,608 | 15,190 | 12,724 | 1,966 | 15,204 | 24,726 | 56,534 | 54,620 | 49,960 |
Total assets | 2,427,615 | 1,632,452 | 2,427,615 | 1,632,452 | |||||||
Operating Segments | Investment in Real Estate | |||||||||||
Segment Information. | |||||||||||
Rental income | 251,031 | ||||||||||
Expenses: | |||||||||||
Real Estate Tax Expense | 28,389 | ||||||||||
Utility expenses | 19,369 | ||||||||||
Other operating expenses | 45,982 | ||||||||||
Depreciation and amortization | 66,593 | ||||||||||
Loss on asset impairment | 2,016 | ||||||||||
Acquisition related costs | 1,344 | ||||||||||
Total expenses | 163,693 | ||||||||||
Operating Income (Loss) | 87,338 | ||||||||||
Interest expense | -7,820 | ||||||||||
Income from continuing operations before income tax expense and equity in earnings of investees | 79,518 | ||||||||||
Income from continuing operations | 79,518 | ||||||||||
Income (loss) from discontinued operations | 3,498 | ||||||||||
Net income | 83,016 | ||||||||||
Total assets | 1,714,130 | 1,714,130 | |||||||||
Operating Segments | Investment in SIR | |||||||||||
Expenses: | |||||||||||
Equity in earnings of investees | 10,876 | ||||||||||
Income from continuing operations | 10,823 | ||||||||||
Net income | 10,823 | ||||||||||
Total assets | 680,137 | 680,137 | |||||||||
Corporate, Non-Segment | |||||||||||
Expenses: | |||||||||||
General and administrative | 15,809 | ||||||||||
Total expenses | 15,809 | ||||||||||
Operating Income (Loss) | -15,809 | ||||||||||
Investment Income, Interest | 69 | ||||||||||
Interest expense | -20,228 | ||||||||||
Loss on early extinguishment of debt | -1,307 | ||||||||||
Income from continuing operations before income tax expense and equity in earnings of investees | -37,275 | ||||||||||
Income tax expense | -117 | ||||||||||
Equity in earnings of investees | 87 | ||||||||||
Income from continuing operations | -37,305 | ||||||||||
Net income | -37,305 | ||||||||||
Total assets | $33,348 | $33,348 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Selected Quarterly Financial Data (Unaudited) | |||||||||||
Rental income | $64,625 | $64,158 | $62,428 | $59,820 | $58,271 | $56,401 | $55,934 | $56,304 | $251,031 | $226,910 | $203,700 |
Net income | $14,114 | $12,622 | $14,608 | $15,190 | $12,724 | $1,966 | $15,204 | $24,726 | $56,534 | $54,620 | $49,960 |
Per Share data: | |||||||||||
Income from discontinued operations, basic and diluted (in dollars per share) | $0.20 | $0.19 | $0.27 | $0.28 | $0.23 | $0.04 | $0.28 | $0.45 | $0.06 | ($0.02) | $0.02 |
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 | $1.69 |
Pro_Forma_Information_Details
Pro Forma Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pro Forma Information | |||
Mortgage debt assumed | $97,524 | ||
Pro forma results of operations | |||
Total revenues | 258,604 | 246,006 | |
Net income | 57,214 | 51,500 | |
Net income, basic and diluted (in dollars per share) | $0.92 | $1 | $1.03 |
Revenue from the acquisitions | 11,240 | ||
Operating income from the acquisitions | 1,438 | ||
Acquisition | |||
Pro Forma Information | |||
Number of Properties Acquired | 4 | ||
Number of Buildings Acquired | 5 | ||
Real Estate Aggregate Purchase Price | $167,525 | ||
Pro forma results of operations | |||
Net income, basic and diluted (in dollars per share) | $0.93 | $0.94 |
SCHEDULE_III_REAL_ESTATE_AND_A1
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Real estate and accumulated depreciation | ||||
Encumbrances | $187,694 | |||
Initial Cost to Company | ||||
Land | 253,096 | |||
Buildings and Equipment | 1,322,433 | |||
Costs Capitalized Subsequent to Acquisition | 106,951 | |||
Cost Amount Carried at Close of Period | ||||
Land | 254,008 | |||
Buildings and Equipment | 1,428,472 | |||
Total | 1,682,480 | 1,568,562 | 1,467,863 | 1,288,453 |
Accumulated Depreciation | -219,791 | -187,635 | -156,661 | -139,210 |
Aggregate cost for federal income tax purposes | 1,953,910 | |||
Useful life of buildings and improvements | 40 years | |||
Useful life of equipment | 12 years | |||
131 Clayton Street, Montgomery, AL | ||||
Initial Cost to Company | ||||
Land | 920 | |||
Buildings and Equipment | 9,084 | |||
Costs Capitalized Subsequent to Acquisition | 16 | |||
Cost Amount Carried at Close of Period | ||||
Land | 920 | |||
Buildings and Equipment | 9,100 | |||
Total | 10,020 | |||
Accumulated Depreciation | -796 | |||
4344 Carmichael Road, Montgomery, AL | ||||
Initial Cost to Company | ||||
Land | 1,374 | |||
Buildings and Equipment | 11,658 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,374 | |||
Buildings and Equipment | 11,658 | |||
Total | 13,032 | |||
Accumulated Depreciation | -291 | |||
15451 North 28th Avenue, Phoenix, AZ | ||||
Initial Cost to Company | ||||
Land | 1,917 | |||
Buildings and Equipment | 7,416 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,917 | |||
Buildings and Equipment | 7,416 | |||
Total | 9,333 | |||
Accumulated Depreciation | -62 | |||
711 14th Avenue, Safford, AZ | ||||
Initial Cost to Company | ||||
Land | 460 | |||
Buildings and Equipment | 11,708 | |||
Costs Capitalized Subsequent to Acquisition | 106 | |||
Cost Amount Carried at Close of Period | ||||
Land | 460 | |||
Buildings and Equipment | 11,814 | |||
Total | 12,274 | |||
Accumulated Depreciation | -1,322 | |||
10949 N. Mather Boulevard, Rancho Cordova, CA | ||||
Initial Cost to Company | ||||
Land | 562 | |||
Buildings and Equipment | 16,923 | |||
Cost Amount Carried at Close of Period | ||||
Land | 562 | |||
Buildings and Equipment | 16,923 | |||
Total | 17,485 | |||
Accumulated Depreciation | -494 | |||
4181 Ruffin Road, San Diego, CA | ||||
Initial Cost to Company | ||||
Land | 5,250 | |||
Buildings and Equipment | 10,549 | |||
Costs Capitalized Subsequent to Acquisition | 3,698 | |||
Cost Amount Carried at Close of Period | ||||
Land | 5,250 | |||
Buildings and Equipment | 14,247 | |||
Total | 19,497 | |||
Accumulated Depreciation | -1,624 | |||
4560 Viewridge Road, San Diego, CA | ||||
Initial Cost to Company | ||||
Land | 4,269 | |||
Buildings and Equipment | 18,316 | |||
Costs Capitalized Subsequent to Acquisition | 906 | |||
Cost Amount Carried at Close of Period | ||||
Land | 4,347 | |||
Buildings and Equipment | 19,144 | |||
Total | 23,491 | |||
Accumulated Depreciation | -8,635 | |||
5045 East Butler Street, Fresno, CA | ||||
Initial Cost to Company | ||||
Land | 7,276 | |||
Buildings and Equipment | 61,118 | |||
Costs Capitalized Subsequent to Acquisition | 8 | |||
Cost Amount Carried at Close of Period | ||||
Land | 7,277 | |||
Buildings and Equipment | 61,125 | |||
Total | 68,402 | |||
Accumulated Depreciation | -18,910 | |||
9800 Goethe Road, Sacramento, CA | ||||
Initial Cost to Company | ||||
Land | 1,550 | |||
Buildings and Equipment | 12,263 | |||
Costs Capitalized Subsequent to Acquisition | 1,491 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,550 | |||
Buildings and Equipment | 13,754 | |||
Total | 15,304 | |||
Accumulated Depreciation | -1,798 | |||
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 | -869 | |||
Capital Place, Sacramento, CA | ||||
Initial Cost to Company | ||||
Land | 2,290 | |||
Buildings and Equipment | 35,891 | |||
Costs Capitalized Subsequent to Acquisition | 3,804 | |||
Cost Amount Carried at Close of Period | ||||
Land | 2,290 | |||
Buildings and Equipment | 39,695 | |||
Total | 41,985 | |||
Accumulated Depreciation | -4,898 | |||
Sky Park Centre, San Diego, CA | ||||
Initial Cost to Company | ||||
Land | 685 | |||
Buildings and Equipment | 5,530 | |||
Costs Capitalized Subsequent to Acquisition | 4 | |||
Cost Amount Carried at Close of Period | ||||
Land | 685 | |||
Buildings and Equipment | 5,534 | |||
Total | 6,219 | |||
Accumulated Depreciation | -1,734 | |||
Turning Basin Business Park, Stockton, CA | ||||
Initial Cost to Company | ||||
Land | 563 | |||
Buildings and Equipment | 5,470 | |||
Cost Amount Carried at Close of Period | ||||
Land | 563 | |||
Buildings and Equipment | 5,470 | |||
Total | 6,033 | |||
Accumulated Depreciation | -330 | |||
12795 West Alameda Parkway, Lakewood, CO | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 7,339 | |||
Initial Cost to Company | ||||
Land | 2,640 | |||
Buildings and Equipment | 23,777 | |||
Costs Capitalized Subsequent to Acquisition | 1,045 | |||
Cost Amount Carried at Close of Period | ||||
Land | 2,640 | |||
Buildings and Equipment | 24,822 | |||
Total | 27,462 | |||
Accumulated Depreciation | -3,047 | |||
16194 West 45th Street, Golden, CO | ||||
Initial Cost to Company | ||||
Land | 494 | |||
Buildings and Equipment | 152 | |||
Costs Capitalized Subsequent to Acquisition | 6,457 | |||
Cost Amount Carried at Close of Period | ||||
Land | 495 | |||
Buildings and Equipment | 6,608 | |||
Total | 7,103 | |||
Accumulated Depreciation | -2,732 | |||
Corporate Center, Lakewood, CO | ||||
Initial Cost to Company | ||||
Land | 2,886 | |||
Buildings and Equipment | 27,537 | |||
Costs Capitalized Subsequent to Acquisition | 3,849 | |||
Cost Amount Carried at Close of Period | ||||
Land | 2,887 | |||
Buildings and Equipment | 31,385 | |||
Total | 34,272 | |||
Accumulated Depreciation | -8,841 | |||
20 Massachusetts Avenue, Washington, DC | ||||
Initial Cost to Company | ||||
Land | 12,008 | |||
Buildings and Equipment | 51,528 | |||
Costs Capitalized Subsequent to Acquisition | 20,858 | |||
Cost Amount Carried at Close of Period | ||||
Land | 12,229 | |||
Buildings and Equipment | 72,166 | |||
Total | 84,395 | |||
Accumulated Depreciation | -27,669 | |||
625 Indiana Avenue, Washington DC, DC | ||||
Initial Cost to Company | ||||
Land | 26,000 | |||
Buildings and Equipment | 25,955 | |||
Costs Capitalized Subsequent to Acquisition | 3,437 | |||
Cost Amount Carried at Close of Period | ||||
Land | 26,000 | |||
Buildings and Equipment | 29,392 | |||
Total | 55,392 | |||
Accumulated Depreciation | -3,238 | |||
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 | -2,816 | |||
8900 Grand Oak Circle, Tampa, FL | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 9,563 | |||
Initial Cost to Company | ||||
Land | 1,100 | |||
Buildings and Equipment | 11,773 | |||
Costs Capitalized Subsequent to Acquisition | 133 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,100 | |||
Buildings and Equipment | 11,906 | |||
Total | 13,006 | |||
Accumulated Depreciation | -1,261 | |||
181 Spring Street NW, Atlanta, GA | ||||
Initial Cost to Company | ||||
Land | 4,047 | |||
Buildings and Equipment | 20,017 | |||
Costs Capitalized Subsequent to Acquisition | 1 | |||
Cost Amount Carried at Close of Period | ||||
Land | 4,048 | |||
Buildings and Equipment | 20,017 | |||
Total | 24,065 | |||
Accumulated Depreciation | -1,209 | |||
220 E. Bryan Street, Savannah, GA | ||||
Initial Cost to Company | ||||
Land | 950 | |||
Buildings and Equipment | 2,376 | |||
Costs Capitalized Subsequent to Acquisition | 46 | |||
Cost Amount Carried at Close of Period | ||||
Land | 950 | |||
Buildings and Equipment | 2,422 | |||
Total | 3,372 | |||
Accumulated Depreciation | -274 | |||
4712 Southpark Boulevard, Ellenwood, GA | ||||
Initial Cost to Company | ||||
Land | 1,390 | |||
Buildings and Equipment | 19,635 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,390 | |||
Buildings and Equipment | 19,635 | |||
Total | 21,025 | |||
Accumulated Depreciation | -1,186 | |||
Corporate Square, Atlanta, GA | ||||
Initial Cost to Company | ||||
Land | 3,996 | |||
Buildings and Equipment | 29,762 | |||
Costs Capitalized Subsequent to Acquisition | 4,666 | |||
Cost Amount Carried at Close of Period | ||||
Land | 3,996 | |||
Buildings and Equipment | 34,428 | |||
Total | 38,424 | |||
Accumulated Depreciation | -8,270 | |||
Executive Park, Atlanta, GA | ||||
Initial Cost to Company | ||||
Land | 1,521 | |||
Buildings and Equipment | 11,826 | |||
Costs Capitalized Subsequent to Acquisition | 3,869 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,521 | |||
Buildings and Equipment | 15,695 | |||
Total | 17,216 | |||
Accumulated Depreciation | -3,195 | |||
One Georgia Center, Atlanta, GA | ||||
Initial Cost to Company | ||||
Land | 10,250 | |||
Buildings and Equipment | 27,933 | |||
Costs Capitalized Subsequent to Acquisition | 175 | |||
Cost Amount Carried at Close of Period | ||||
Land | 10,250 | |||
Buildings and Equipment | 28,108 | |||
Total | 38,358 | |||
Accumulated Depreciation | -2,297 | |||
South Vinnell Way, Boise, ID | ||||
Initial Cost to Company | ||||
Land | 3,390 | |||
Buildings and Equipment | 29,026 | |||
Costs Capitalized Subsequent to Acquisition | 330 | |||
Cost Amount Carried at Close of Period | ||||
Land | 3,390 | |||
Buildings and Equipment | 29,355 | |||
Total | 32,745 | |||
Accumulated Depreciation | -1,701 | |||
2020 S. Arlington Heights, Arlington Heights, IL | ||||
Initial Cost to Company | ||||
Land | 1,450 | |||
Buildings and Equipment | 13,160 | |||
Costs Capitalized Subsequent to Acquisition | 846 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,450 | |||
Buildings and Equipment | 14,006 | |||
Total | 15,456 | |||
Accumulated Depreciation | -1,770 | |||
Intech Park, Indianapolis, IN | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 47,418 | |||
Initial Cost to Company | ||||
Land | 4,170 | |||
Buildings and Equipment | 68,888 | |||
Costs Capitalized Subsequent to Acquisition | 2,264 | |||
Cost Amount Carried at Close of Period | ||||
Land | 4,170 | |||
Buildings and Equipment | 71,152 | |||
Total | 75,322 | |||
Accumulated Depreciation | -5,748 | |||
400 State Street, Kansas City, KS | ||||
Initial Cost to Company | ||||
Land | 640 | |||
Buildings and Equipment | 9,932 | |||
Costs Capitalized Subsequent to Acquisition | 1,345 | |||
Cost Amount Carried at Close of Period | ||||
Land | 640 | |||
Buildings and Equipment | 11,277 | |||
Total | 11,917 | |||
Accumulated Depreciation | -1,315 | |||
7125 Industrial Road, Florence, KY | ||||
Initial Cost to Company | ||||
Land | 1,698 | |||
Buildings and Equipment | 11,722 | |||
Costs Capitalized Subsequent to Acquisition | 10 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,698 | |||
Buildings and Equipment | 11,732 | |||
Total | 13,430 | |||
Accumulated Depreciation | -586 | |||
25 Newport Avenue, Quincy, MA | ||||
Initial Cost to Company | ||||
Land | 2,700 | |||
Buildings and Equipment | 9,199 | |||
Costs Capitalized Subsequent to Acquisition | 348 | |||
Cost Amount Carried at Close of Period | ||||
Land | 2,700 | |||
Buildings and Equipment | 9,547 | |||
Total | 12,247 | |||
Accumulated Depreciation | -922 | |||
251 Causeway Street, Boston, MA | ||||
Initial Cost to Company | ||||
Land | 5,100 | |||
Buildings and Equipment | 17,293 | |||
Costs Capitalized Subsequent to Acquisition | 684 | |||
Cost Amount Carried at Close of Period | ||||
Land | 5,100 | |||
Buildings and Equipment | 17,977 | |||
Total | 23,077 | |||
Accumulated Depreciation | -1,915 | |||
75 Pleasant Street, Malden, MA | ||||
Initial Cost to Company | ||||
Land | 1,050 | |||
Buildings and Equipment | 31,086 | |||
Costs Capitalized Subsequent to Acquisition | 118 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,050 | |||
Buildings and Equipment | 31,204 | |||
Total | 32,254 | |||
Accumulated Depreciation | -3,565 | |||
One Montvale Avenue, Stoneham, MA | ||||
Initial Cost to Company | ||||
Land | 1,670 | |||
Buildings and Equipment | 11,035 | |||
Costs Capitalized Subsequent to Acquisition | 930 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,670 | |||
Buildings and Equipment | 11,965 | |||
Total | 13,635 | |||
Accumulated Depreciation | -1,277 | |||
20400 Century Boulevard, Germantown, MD | ||||
Initial Cost to Company | ||||
Land | 2,305 | |||
Buildings and Equipment | 9,890 | |||
Costs Capitalized Subsequent to Acquisition | 740 | |||
Cost Amount Carried at Close of Period | ||||
Land | 2,347 | |||
Buildings and Equipment | 10,588 | |||
Total | 12,935 | |||
Accumulated Depreciation | -4,738 | |||
2115 East Jefferson Street, North Bethesda, MD | ||||
Initial Cost to Company | ||||
Land | 3,349 | |||
Buildings and Equipment | 11,152 | |||
Cost Amount Carried at Close of Period | ||||
Land | 3,349 | |||
Buildings and Equipment | 11,152 | |||
Total | 14,501 | |||
Accumulated Depreciation | -372 | |||
3300 75th Avenue, Landover, MD | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 23,833 | |||
Initial Cost to Company | ||||
Land | 4,110 | |||
Buildings and Equipment | 36,371 | |||
Costs Capitalized Subsequent to Acquisition | 402 | |||
Cost Amount Carried at Close of Period | ||||
Land | 4,110 | |||
Buildings and Equipment | 36,773 | |||
Total | 40,883 | |||
Accumulated Depreciation | -4,423 | |||
4201 Patterson Avenue, Baltimore, MD | ||||
Initial Cost to Company | ||||
Land | 900 | |||
Buildings and Equipment | 8,097 | |||
Costs Capitalized Subsequent to Acquisition | 2,240 | |||
Cost Amount Carried at Close of Period | ||||
Land | 901 | |||
Buildings and Equipment | 10,336 | |||
Total | 11,237 | |||
Accumulated Depreciation | -3,421 | |||
1401 Rockville Pike, Rockville, MD | ||||
Initial Cost to Company | ||||
Land | 3,251 | |||
Buildings and Equipment | 29,258 | |||
Costs Capitalized Subsequent to Acquisition | 5,460 | |||
Cost Amount Carried at Close of Period | ||||
Land | 3,248 | |||
Buildings and Equipment | 34,721 | |||
Total | 37,969 | |||
Accumulated Depreciation | -13,286 | |||
Meadows Business Park, Woodlawn, MD | ||||
Initial Cost to Company | ||||
Land | 3,735 | |||
Buildings and Equipment | 21,509 | |||
Costs Capitalized Subsequent to Acquisition | 213 | |||
Cost Amount Carried at Close of Period | ||||
Land | 3,735 | |||
Buildings and Equipment | 21,722 | |||
Total | 25,457 | |||
Accumulated Depreciation | -2,117 | |||
Rutherford Business Park, Windsor Mill, MD | ||||
Initial Cost to Company | ||||
Land | 1,598 | |||
Buildings and Equipment | 10,219 | |||
Costs Capitalized Subsequent to Acquisition | 8 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,598 | |||
Buildings and Equipment | 10,227 | |||
Total | 11,825 | |||
Accumulated Depreciation | -533 | |||
11411 E. Jefferson Avenue, Detroit, MI | ||||
Initial Cost to Company | ||||
Land | 630 | |||
Buildings and Equipment | 18,002 | |||
Cost Amount Carried at Close of Period | ||||
Land | 630 | |||
Buildings and Equipment | 18,002 | |||
Total | 18,632 | |||
Accumulated Depreciation | -2,100 | |||
330 South Second Avenue, Minneapolis, MN | ||||
Initial Cost to Company | ||||
Land | 3,990 | |||
Buildings and Equipment | 18,186 | |||
Costs Capitalized Subsequent to Acquisition | 7,640 | |||
Cost Amount Carried at Close of Period | ||||
Land | 3,990 | |||
Buildings and Equipment | 25,826 | |||
Total | 29,816 | |||
Accumulated Depreciation | -2,407 | |||
Rosedale Corporate Plaza, Roseville, MN | ||||
Initial Cost to Company | ||||
Land | 672 | |||
Buildings and Equipment | 6,045 | |||
Costs Capitalized Subsequent to Acquisition | 1,295 | |||
Cost Amount Carried at Close of Period | ||||
Land | 672 | |||
Buildings and Equipment | 7,340 | |||
Total | 8,012 | |||
Accumulated Depreciation | -2,423 | |||
1300 Summit Street, Kansas City, MO | ||||
Initial Cost to Company | ||||
Land | 2,776 | |||
Buildings and Equipment | 12,070 | |||
Costs Capitalized Subsequent to Acquisition | 197 | |||
Cost Amount Carried at Close of Period | ||||
Land | 2,776 | |||
Buildings and Equipment | 12,267 | |||
Total | 15,043 | |||
Accumulated Depreciation | -684 | |||
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 | 3,769 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,780 | |||
Buildings and Equipment | 9,625 | |||
Total | 11,405 | |||
Accumulated Depreciation | -4,249 | |||
1220 Echelon Parkway, Jackson, MS | ||||
Initial Cost to Company | ||||
Land | 440 | |||
Buildings and Equipment | 25,458 | |||
Costs Capitalized Subsequent to Acquisition | 49 | |||
Cost Amount Carried at Close of Period | ||||
Land | 440 | |||
Buildings and Equipment | 25,507 | |||
Total | 25,947 | |||
Accumulated Depreciation | -1,541 | |||
10-12 Celina Avenue, Nashua, NH | ||||
Initial Cost to Company | ||||
Land | 3,000 | |||
Buildings and Equipment | 14,052 | |||
Costs Capitalized Subsequent to Acquisition | 154 | |||
Cost Amount Carried at Close of Period | ||||
Land | 3,000 | |||
Buildings and Equipment | 14,206 | |||
Total | 17,206 | |||
Accumulated Depreciation | -1,900 | |||
50 West State Street, Trenton, NJ | ||||
Initial Cost to Company | ||||
Land | 5,000 | |||
Buildings and Equipment | 38,203 | |||
Costs Capitalized Subsequent to Acquisition | 1,334 | |||
Cost Amount Carried at Close of Period | ||||
Land | 5,000 | |||
Buildings and Equipment | 39,537 | |||
Total | 44,537 | |||
Accumulated Depreciation | -3,889 | |||
435 Montano Boulevard, Albuquerque, NM | ||||
Initial Cost to Company | ||||
Land | 710 | |||
Buildings and Equipment | 1,651 | |||
Costs Capitalized Subsequent to Acquisition | 147 | |||
Cost Amount Carried at Close of Period | ||||
Land | 710 | |||
Buildings and Equipment | 1,798 | |||
Total | 2,508 | |||
Accumulated Depreciation | -254 | |||
138 Delaware Avenue, Buffalo, NY | ||||
Initial Cost to Company | ||||
Land | 4,405 | |||
Buildings and Equipment | 18,899 | |||
Costs Capitalized Subsequent to Acquisition | 5,016 | |||
Cost Amount Carried at Close of Period | ||||
Land | 4,485 | |||
Buildings and Equipment | 23,835 | |||
Total | 28,320 | |||
Accumulated Depreciation | -8,837 | |||
305 East 46th Street, New York, NY | ||||
Initial Cost to Company | ||||
Land | 36,800 | |||
Buildings and Equipment | 66,661 | |||
Costs Capitalized Subsequent to Acquisition | 1,217 | |||
Cost Amount Carried at Close of Period | ||||
Land | 36,800 | |||
Buildings and Equipment | 67,878 | |||
Total | 104,678 | |||
Accumulated Depreciation | -5,991 | |||
5000 Corporate Court, Holtsville, NY | ||||
Initial Cost to Company | ||||
Land | 6,530 | |||
Buildings and Equipment | 17,711 | |||
Costs Capitalized Subsequent to Acquisition | 1,106 | |||
Cost Amount Carried at Close of Period | ||||
Land | 6,530 | |||
Buildings and Equipment | 18,817 | |||
Total | 25,347 | |||
Accumulated Depreciation | -1,551 | |||
Airline Corporate Center, Colonie, NY | ||||
Initial Cost to Company | ||||
Land | 790 | |||
Buildings and Equipment | 6,400 | |||
Cost Amount Carried at Close of Period | ||||
Land | 790 | |||
Buildings and Equipment | 6,400 | |||
Total | 7,190 | |||
Accumulated Depreciation | -400 | |||
4600 25th Avenue, Salem, OR | ||||
Initial Cost to Company | ||||
Land | 6,510 | |||
Buildings and Equipment | 17,973 | |||
Costs Capitalized Subsequent to Acquisition | 3,920 | |||
Cost Amount Carried at Close of Period | ||||
Land | 6,510 | |||
Buildings and Equipment | 21,893 | |||
Total | 28,403 | |||
Accumulated Depreciation | -1,672 | |||
Synergy Business Park, Columbia, SC | ||||
Initial Cost to Company | ||||
Land | 1,439 | |||
Buildings and Equipment | 11,143 | |||
Costs Capitalized Subsequent to Acquisition | 2,488 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,439 | |||
Buildings and Equipment | 13,631 | |||
Total | 15,070 | |||
Accumulated Depreciation | -2,039 | |||
One Memphis Place, Memphis, TN | ||||
Initial Cost to Company | ||||
Land | 1,630 | |||
Buildings and Equipment | 5,645 | |||
Costs Capitalized Subsequent to Acquisition | 897 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,630 | |||
Buildings and Equipment | 6,542 | |||
Total | 8,172 | |||
Accumulated Depreciation | -730 | |||
701 Clay Road, Waco, TX | ||||
Initial Cost to Company | ||||
Land | 2,030 | |||
Buildings and Equipment | 8,708 | |||
Costs Capitalized Subsequent to Acquisition | 2,100 | |||
Cost Amount Carried at Close of Period | ||||
Land | 2,060 | |||
Buildings and Equipment | 10,778 | |||
Total | 12,838 | |||
Accumulated Depreciation | -4,081 | |||
Aquia Commerce Center, Stafford, VA | ||||
Initial Cost to Company | ||||
Land | 2,090 | |||
Buildings and Equipment | 7,465 | |||
Costs Capitalized Subsequent to Acquisition | 162 | |||
Cost Amount Carried at Close of Period | ||||
Land | 2,090 | |||
Buildings and Equipment | 7,627 | |||
Total | 9,717 | |||
Accumulated Depreciation | -665 | |||
Enterchange at Meadowville, Chester, VA | ||||
Initial Cost to Company | ||||
Land | 1,478 | |||
Buildings and Equipment | 9,594 | |||
Costs Capitalized Subsequent to Acquisition | 235 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,478 | |||
Buildings and Equipment | 9,829 | |||
Total | 11,307 | |||
Accumulated Depreciation | -320 | |||
Pender Business Park, Fairfax, VA | ||||
Initial Cost to Company | ||||
Land | 2,529 | |||
Buildings and Equipment | 21,386 | |||
Costs Capitalized Subsequent to Acquisition | 87 | |||
Cost Amount Carried at Close of Period | ||||
Land | 2,529 | |||
Buildings and Equipment | 21,473 | |||
Total | 24,002 | |||
Accumulated Depreciation | -623 | |||
3920 Pender Drive, Fairfax, VA | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 14,374 | |||
Initial Cost to Company | ||||
Land | 2,964 | |||
Buildings and Equipment | 12,840 | |||
Costs Capitalized Subsequent to Acquisition | 9 | |||
Cost Amount Carried at Close of Period | ||||
Land | 2,964 | |||
Buildings and Equipment | 12,850 | |||
Total | 15,814 | |||
Accumulated Depreciation | -241 | |||
1759 & 1760 Business Park Drive Reston, VA | ||||
Real estate and accumulated depreciation | ||||
Encumbrances | 85,167 | |||
Initial Cost to Company | ||||
Land | 9,066 | |||
Buildings and Equipment | 78,658 | |||
Costs Capitalized Subsequent to Acquisition | 51 | |||
Cost Amount Carried at Close of Period | ||||
Land | 9,066 | |||
Buildings and Equipment | 78,709 | |||
Total | 87,775 | |||
Accumulated Depreciation | -1,147 | |||
Perimeter Center, Richmond, VA | ||||
Initial Cost to Company | ||||
Land | 2,614 | |||
Buildings and Equipment | 15,930 | |||
Costs Capitalized Subsequent to Acquisition | 29 | |||
Cost Amount Carried at Close of Period | ||||
Land | 2,614 | |||
Buildings and Equipment | 15,959 | |||
Total | 18,573 | |||
Accumulated Depreciation | -232 | |||
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 | -1,007 | |||
840 North Broadway, Everett, WA | ||||
Initial Cost to Company | ||||
Land | 3,360 | |||
Buildings and Equipment | 15,376 | |||
Costs Capitalized Subsequent to Acquisition | 159 | |||
Cost Amount Carried at Close of Period | ||||
Land | 3,360 | |||
Buildings and Equipment | 15,535 | |||
Total | 18,895 | |||
Accumulated Depreciation | -965 | |||
Stevens Center, Richland, WA | ||||
Initial Cost to Company | ||||
Land | 3,970 | |||
Buildings and Equipment | 17,035 | |||
Costs Capitalized Subsequent to Acquisition | 769 | |||
Cost Amount Carried at Close of Period | ||||
Land | 4,042 | |||
Buildings and Equipment | 17,732 | |||
Total | 21,774 | |||
Accumulated Depreciation | -7,732 | |||
11050 West Liberty Drive, Milwaukee, WI | ||||
Initial Cost to Company | ||||
Land | 945 | |||
Buildings and Equipment | 4,539 | |||
Costs Capitalized Subsequent to Acquisition | 132 | |||
Cost Amount Carried at Close of Period | ||||
Land | 945 | |||
Buildings and Equipment | 4,671 | |||
Total | 5,616 | |||
Accumulated Depreciation | -424 | |||
2029 Stonewall Jackson Drive, Falling Waters, WV | ||||
Initial Cost to Company | ||||
Land | 906 | |||
Buildings and Equipment | 3,886 | |||
Costs Capitalized Subsequent to Acquisition | 263 | |||
Cost Amount Carried at Close of Period | ||||
Land | 921 | |||
Buildings and Equipment | 4,133 | |||
Total | 5,054 | |||
Accumulated Depreciation | -1,795 | |||
5353 Yellowstone Road, Cheyenne, WY | ||||
Initial Cost to Company | ||||
Land | 1,915 | |||
Buildings and Equipment | 8,217 | |||
Costs Capitalized Subsequent to Acquisition | 1,193 | |||
Cost Amount Carried at Close of Period | ||||
Land | 1,950 | |||
Buildings and Equipment | 9,375 | |||
Total | 11,325 | |||
Accumulated Depreciation | ($4,405) |
SCHEDULE_III_REAL_ESTATE_AND_A2
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Real Estate Properties | |||
Balance at the beginning of the period | $1,568,562 | $1,467,863 | $1,288,453 |
Additions | 151,316 | 103,413 | 192,560 |
Loss on asset impairment | -7,058 | ||
Disposals | -444 | -2,714 | -13,150 |
Reclassification of assets held for sale | -29,896 | ||
Balance at the end of the period | 1,682,480 | 1,568,562 | 1,467,863 |
Accumulated Depreciation | |||
Balance at the beginning of the period | 187,635 | 156,661 | 139,210 |
Additions | 37,671 | 33,688 | 30,601 |
Real Estate Accumulated Depreciation Impairment or Writedowns | -5,071 | ||
Disposals | -444 | -2,714 | -13,150 |
Balance at the end of the period | $219,791 | $187,635 | $156,661 |
Uncategorized_Items
Uncategorized Items | |||
[gov_NumberOfBuildings] | 2 | 1 | |
[us-gaap_SharesIssued] | 47,051,650 |